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EAIR CONFERENCE VILNIUS 2009
TRACK 2: FIGHTING FOR HARMONY- WHERE DOES THE POWER OF GOVERNANCE RESIDE?
Creating the modern university –changing governance for a
changing world
DAMIAN BARRYDEPARTMENT OF ACCOUNTING AND FINANCE
MONASH UNIVERSITY([email protected])
OUTLINE•Background and context•The University: Purpose•Power and Governance•Drivers of change•The Governance debate•Leadership •Creating the “modern” University
Department of Accounting and Finance Slide 3
UNIVERSITY
THE TRADITIONAL UNIVERSITY
COMMUNITY/GOVT/INDUSTRY
STUDENTACADEMIC
Department of Accounting and Finance Slide 4
THE MODERN UNIVERSITY?
• INDUSTRY• PROFESSIONS
• GOVERNMENT• COMMUNITY
ADMIN & MGT
TEACHING
RESEARCHSTUDENTS
Department of Accounting and Finance Slide 5
Three Questions
1. Are existing University discipline-based structures appropriate for the effective governance of a modern University?
2. Should there be a fundamental review of the current leadership roles and their function?
3. What are the key elements of a modern University governance structure?
ENVIRONMENTAL SCAN
•Universities under fundamental challenge – government; students; staff; industry; community•Current governance and structures are inflexible, not aligned to purpose, inhibit effectiveness. •Much angst, debate, research and many reviews but any change has been at the margins.•Purpose should drive structure
Department of Accounting and Finance Slide 7
UNIVERSITY: FUNCTIONS (PURPOSE)In Australia this is legislated to include:
•Research
•Education
•Engagement
Community, Industry, Government
Department of Accounting and Finance Slide 8
The purpose (objective) of the University is..• To inspire and enable individuals to develop their capabilities to
the highest potential levels throughout life, so that they grow intellectually, are well equipped for work, can contribute effectively to society and achieve personal fulfilment;
• To increase knowledge and understanding for their own sake and to foster their application to the benefit of the economy and society;
• To serve the needs of an adaptable, sustainable, knowledge-based economy at local, regional and national levels;
• To play a major role in shaping a democratic, civilised, inclusive society.
• (Dearing 1997).
Department of Accounting and Finance Slide 9
Australia’s Higher Education Reform Principles – Universities purpose..
SustainabilityDiversity
Quality Equity
POWER: WHERE DOES POWER RESIDE
•LEGISLATURE – CREATES UNIVERSITY; mandates academic based structures
•ACADEMIC – programs; structures;
•EXECUTIVE – resourcing; strategy; quality
GOVERNANCE..
•ESTABLISHES WHO IS IN CHARGE.
•DRIVES VALUES AND CULTURE
GOVERNANCE RESEARCH – a review
•Academic perspective - culture and values•Focus on bureaucracy and managerialism – not governance•No organisation focus•Locus of power and symbols of power remain unchallenged•Fear of “trespass”
Department of Accounting and Finance Slide 13
Good governance
• Transparency, accountability and responsibility.
• Effective leadership and dynamics
• Effective structures and processes -delegations
• Effective membership
• Commitment to vision, culture and values
• Effective monitoring
• Effective information and communication
Department of Accounting and Finance Slide 14
CURRENT LIMITATIONS • Structure supports “old” purpose and
objectives • Managing within structures rather than
challenging the structures• The University has evolved from Elite to
Mass to Universal provider without serious review
Department of Accounting and Finance Slide 15
CHANGE IS HERE… driven by
• GLOBALISATION & INTERNATIONALISATION– COMMERCIALISATION– PRIVATISATION– “MARKETISATION” – COMMODIFICATION
• GOVERNMENT
• INFORMATION AND COMMUNICATION TECHNOLOGY
Department of Accounting and Finance Slide 16
WHO IS DRIVING CHANGE
• GOVERNMENT• COMMUNITY• INDUSTRY & PROFESSIONS• EXECUTIVE MANAGEMENT
Department of Accounting and Finance Slide 17
The debate• Academic concerns
– Loss of autonomy– Reduction of academic freedom– Research –v- teaching– Managerialism, bureaucracy– Accountability– Workforce
Department of Accounting and Finance Slide 18
The debate• Government view
– Student centredness – quality teaching, equity and access
– Improve community engagement– Accountability and quality control– Mission clarity – diversity and excellence– Leadership – Governance and risk management– Relevance of research output– Competition and collaboration– Public and private provision
Department of Accounting and Finance Slide 19
The debate…• Administration view
– Not involved– Organisation and Leadership focus– Issues…
Culture Relevance, value and careerRelationships Disenfranchised Lack of empowerment and engagement
LEADERS AND LEADERSHIP
•COUNCIL•CHANCELLOR•VICE CHANCELLOR•DEANS•HEADS OF DEPARTMENTS/SCHOOLS
Department of Accounting and Finance Slide 21
To create the 21st century University:
University requires new mechanisms of governance• to integrate academic and business processes• to identify and pursue institutional interests and profile• to exercise professional leadership (guidance) at all
levels of the university• to ensure respect for academic freedom• to acknowledge members and stakeholders
Department of Accounting and Finance Slide 22
Challenges: Balancing institutional interests and academic freedom.
• Understanding the academic discovery process (participation, collegiality, hierarchy…)
• Professionalism and partnership: Managerial expertise plus academic endeavour can work together
• Communication - goals and intentions• Democratisation and empowerment - recognise the shared roles
and responsibilities• Guidance rather than leadership • Top-down plus bottom-up• Personal rather than collective responsibility
Department of Accounting and Finance Slide 23
Challenges: Implementing new instruments ofgovernance
• Change the Act• Generate debate and opinion development through
communication• Empower managers at all levels• Develop profile and strategy – a form of internal
compact• Implement contracts/agreements with stakeholders• Allow performance-based evaluations• Introduce achievement-oriented budget allocation(Gaehtgens, 2009)
How to get there…
To deliver the 21st century university governance MUST:
“In structure and process, encourage and facilitate positive, proactive, and continuous institutional transformation together with relationship-building strategies focused on stakeholders as well as markets and sustained revenue generation (Gayle, Trewarie & White, 2003).
The twenty-first-century university will be:
• More an intellectual space than a physical space• More than teaching and research • Enabler of partnerships
An organisation underpinned by:– instructional technologies – values– ideas– revenue flows– sociopolitical legitimacy – marketing and branding
Department of Accounting and Finance Slide 26
A different view
“We should pay attention .. not to the specific form of elite institutions, but to the processes by which they embed relevance and responsiveness at an institutional level.”
(Prof Ed Byrne (2009), Vice Chancellor, Monash University)
Thank You
Questions?