The consequences of poor governance in terms of reputational damage, unsustainable finances
and poor quality services for clients are just as real in universities as in the corporate world.
University governing bodies and the management teams that support them need transparent
and high standards to guide them in discharging their fiduciary duties,
clear systems of delegation and well developed systems for managing risk and auditing
compliance with internal control systems and legislative requirements.
With one Vice-chancellor’s salary now breaking through the $1 million mark, the comparisons
with the corporate sector are increasingly valid.
At last year’s OECD forum on the future of higher education, fellow education ministers
highlighted six factors as the principal components of good public governance: accountability,
transparency, efficiency and effectiveness, responsiveness and forward vision.
The Business and Industry Advisory Committee to the OECD said that, “good governance
should serve as the parameters for good management of academic institutions.
Just as mismanaged companies cannot flourish, higher education institutions cannot fully meet
the needs of their stakeholders if they are mismanaged.”
The link between improved governance and better management of universities is self evident.
The Martin Institute is uniquely placed to be at the forefront of reshaping the tertiary education
landscape in Australia.
It will provide a new national focus on enhancing the quality of tertiary education leadership,
management and governance by training the next generation of leaders of Australia’s higher
education and VET institutions.
In question time the Minister confirmed the link between improved institutional governance and reduced Federal regulation emphasising three themes:
