Review of the National Governance Protocols
In November 2005 the Ministerial Council on Education, Employment, Training and Youth Affairs agreed to “conduct a review of the impact of the National Governance Protocols and scope for their enhancement, including examination of the need for stronger fiduciary responsibilities for members of governing councils”.
This is in part responding to issues raised in the Australian Government's consultations on the discussion document Building Better Foundations for Higher Education in Australia : A discussion about re-aligning Commonwealth – State responsibilities .
The National Governance Protocols are being reviewed now, for change in late 2007.
Despite the agreement for reporting to MCEETYA, the power to alter the National Governance Protocols resides entirely with the Commonwealth.
The Federal Minister for Education, Julie Bishop, has flagged prospective changes to the National Governance Protocols in two key speeches on university governance.
The Minister shared her view with the community of university governors at the 6th National Conference on University Governance on 10th October. The National Governance Protocols were, she said,
“established to provide an incentive for universities to significantly improve their governance - not for universities to only meet minimum expectations. It was not an invitation to accept the lowest common denominator.”
The issues she was suggesting were to be considered for inclusion in a revised set of Protocols.
“What the Australian Government is seeking to bring about is a change of culture within university governing bodies. While there has been much movement in the right direction, cultural change cannot be expected to occur overnight because it involves shifting attitudes, and attitudes can be notoriously hard to shift.”
The Minister reiterated these governance issues in the broader theme of the next decade of Higher Education at Making the Boom Pay 2006 Economic and Social Outlook Conference on 3rd November.
So does the university governance community have anything to say about these changes?
Commitment and remuneration of university governors
A fundamental criterion in my view is that all governing body members should be fully committed to their duties. … If universities need to pay governing body members to attract people with the necessary skills and commitment, then this is something all universities should consider.
Link to discussion paper and governors' responses
Strategic Estate Management
While on the subject of university finances, governing bodies might need to take a more proactive role in looking at the management of assets. My department's Institution Assessment Framework data has suggested that some universities may not be making enough provision for maintenance, and that in time they may face significant costs to bring their facilities up to a satisfactory standard. The National Governance Protocols could be strengthened to require the governing body to approve a strategic asset management plan.
Link to discussion paper and governors' responses
Information and Key Performance Indicators
Governing bodies need information. They must have statistical data and performance indicators so that they know how their university is faring. I think that the Annual Report approved by the governing body should report on performance indicators set by the governing body. The governing body should be required to consider performance and comparative performance data produced by my department. Enormous effort goes into supplying data by institutions and I would like to see it better utilised.
Link to discussion paper and governors' responses
Governing body Secretariats
Governing bodies may need upgraded Secretariats, to provide this information and advice on responsibilities and legal issues. I suggest it should be mandatory that there be a council secretary or similar officer separate to the Vice-Chancellor or Chief Executive Officer.
Link to discussion paper and governors' responses
Size of governing bodies
Good practice models suggest that 10 to 15 members is the ideal size for such a body – large enough to benefit from a diversity of viewpoints, while small enough to facilitate effective decision making. My inclination is to have a limit of 14 that must continue to have a majority of external independent members who are neither enrolled as a student nor employed by the higher education provider. Specialists can be invited for particular information or additional perspectives on issues.
Link to discussion paper and governors' responses
Mission Diversity
In recent months I have spoken of the need for greater diversity in the university sector in Australia . By focusing on the things they do really well, and putting more of their resources into their strengths, universities will provide higher quality outcomes and improve their standing in an increasingly competitive international environment. Being just average in most things will not be good enough in the medium and longer term. Governing bodies should lead their universities in setting their directions in this regard
Link to discussion paper and governors' responses
Chancellor's Role
University Chancellors are taking a much more proactive role than in previous years – they are engaging more systematically with their universities, and with other Chancellors. Their statements and activities in relation to their universities are being much more frequently reported in the media, and they are leaders rather than figureheads. Chancellors have a vital, if not lead role to play in enhancing the philanthropic and alumni efforts of our universities.
Link to discussion paper and governors' responses
Accountability, Regulation and De-regulation
There will always be accountability requirements – with more than $7.8 billion of taxpayers' money paid by the Australian Government to the higher education sector each year that is only fair. But if the Government can be confident that universities are responding to the diverse educational and research needs of the nation, there is less need to prescribe requirements to universities. A high standard of governance is a key component of this quality assurance.
Link to discussion paper and governors' responses
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