THE EFFECTIVENESS OF GOVERNING BODIES Workshop Session 25 August, 2006 Michael Kelleher OECD/IMHE SEMINAR AUGUST 13/06/2013 2006 1
BACKGROUND 1 LEGAL STRUCTURES 1968 EVENTS IMPACT ON CONTINENTAL EUROPEAN UNIVERSITIES STRONG REPRESENTATIVE MEMBERSHIP ACADEMIC STAFF, STUDENTS, OTHER STAFF OECD/IMHE SEMINAR AUGUST 13/06/2013 2006 2
BACKGROUND 2 MASSIVE GROWTH INCREASED BUDGETS ACCOUNTABILITY COLLEGIALITY- SHARED GOVERNANCE MANAGERIAL MODELS OECD/IMHE SEMINAR AUGUST 13/06/2013 2006 3
BACKGROUND 3 SIZE OF GOVERNING BODY INTERNAL/EXTERNAL MEMBERS GENDER BALANCE COMMERCIAL RISKS GOVERNMENT INTERVENTION LAY/EXTERTNAL MEMBERS OECD/IMHE SEMINAR AUGUST 13/06/2013 2006 4
BACKGROUND 4 CORPORATE SCANDALS - ENRON etc SARBANES-OXLEY ACT, USA (2002) THE COMBINED CODE OF CORPORATE GOVERNANCE - UK – most recent issue 2006 COMPARE UNIVERSITIES with CORPORATE SECTOR MULTIPLICITY OF STAKEHOLDERS OECD/IMHE SEMINAR AUGUST 13/06/2013 2006 5
MODERN GOVERNING BODIES 1 CHANGE GUIDELINES ASSOCIATION of GOVERNING BODIES - USA COMMITTEE OF UNIVERSITY CHAIRMAN - UK IRISH UNIVERSITIES ASSOCIATION OECD/IMHE SEMINAR AUGUST 13/06/2013 2006 6
MODERN GOVERNING BODIES 2 AUSTRALIAN GOVERNMENT – DEPT. OF SCIENCE AND TRAINING GUIDELINES MAINLY VOLUNTARY “THREAT” OF LEGAL IMPOSITION INFLUENCE OF CORPORATE PRACTICES EFFECTIVENESS OF GOVERNING BODIES OECD/IMHE SEMINAR AUGUST 13/06/2013 2006 7
ASSESSMENT OF EFFECTIVENESS MEMBERS AGENDA ACCOUNTABILITY ADMINISTRATION OECD/IMHE SEMINAR AUGUST 13/06/2013 2006 8
MEMBERS Are members adequately informed? Is role of governing body clearly understood by all, including members? Is there induction for new members? Does membership represent all skills/experience necessary Are skills and knowledge of members regularly updated OECD/IMHE SEMINAR AUGUST 13/06/2013 2006 9
MEMBERS 2 Is balance between internal and external/lay members optimal? Is gender balance correct? Is independence of governing body assured? OECD/IMHE SEMINAR AUGUST 13/06/2013 2006 10
AGENDA 1 Does the governing body clearly understand the distinction between the roles of the executive and of the governing body? Does the governing body operate strategically? Is the governing body presented with clear choices by the executive? OECD/IMHE SEMINAR AUGUST 13/06/2013 2006 11
AGENDA Does the governing body interrogate the proposals from the executive? Does the governing body contribute to the preparation of the strategic plan? Is the strategic plan implementation monitored by the governing body OECD/IMHE SEMINAR AUGUST 13/06/2013 2006 12
AGENDA 3 Is the governing body adequately briefed on the views of academic staff on academic proposals? Is there a clear understanding of the sensitive balance between the responsibilities of the governing body and of the senior academic body (senate/academic council)? OECD/IMHE SEMINAR AUGUST 13/06/2013 2006 13
ACCOUNTABILITY Is the governing body clear as to its functions in overall financial governance? Is the governing body adequately informed of (non-academic) financial risks? Is the relationship between the governing body and its audit committee optimal? Does the governing body satisfy itself that there is legal compliance (health and safety, taxation, employment law, procurement, estate management, charitable status, etc.) OECD/IMHE SEMINAR AUGUST 13/06/2013 2006 14
ADMINISTRATION 1 How effectively are new members selected (where legally feasible)? Does the governing body receive all required information in a timely manner? Does the governing body examine the structure of the executive as to its appropriateness? OECD/IMHE SEMINAR AUGUST 13/06/2013 2006 15
ADMINISTRATION 2 Does the governing body review the role of its secretary and ensure the independence of that office? Does the governing body examine the functioning of its sub-committees and the contributions which individual members make to the university? OECD/IMHE SEMINAR AUGUST 13/06/2013 2006 16
CONCLUSION DOES THE GOVERNING BODY CARRY OUT A REGULAR REVIEW OF ITS OWN EFFECTIVENESS AND OF THAT OF ITS MEMBERS, ON THE BASIS OF THE FOREGOING ISSSUES, OR OTHERWISE DOES THE GOVERNING BODY MAINTAIN CONTACT WITH THE UNIVERSITY’S STAKEHOLDERS – students, staff, local and national/international business, local and national government, funding agencies for teaching and research, benefactors, teaching hospitals, church authorities, schools, other colleges and universities, etc. DOES THE GOVERNING BODY CARRY OUT ITS FUNCTIONS IN THE CONTEXT OF THE FACT THAT “THERE IS NO BUSINESS LIKE UNIVERSITY BUSINESS.” (Larsson, Allan – Keynote Address – 24 August, 2006) End. OECD/IMHE SEMINAR AUGUST 13/06/2013 2006 17
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