2. The Challenges for Governance
Steve Egan
HEFCE Annual Meeting
25th November 2010
Intro
SMILE
Personal responsibility
Recognise contribution of Governors

3. Role of Governing Bodies
Set Strategy
Monitor Performance
Protect Autonomy
Stakeholder Confidence
Refer to CUC code ?

4. Governance Challenges
Business Issues
Control
Costs
Deliver
Value
Responsive
Agile
Planned
Systematic
Current
Expenditure
Investment
Risks
Opportunity
How to do both not overdoing either
Build on
Strengths
Culture Change

5. Positioning Governance
Accountability
Support
Public
Benefit
Market
Response
Academic
Freedom
Strategic
Direction
Historic
Constitution
New
Models
VC issues more leave, more support needed
Charities Act, public legitimacy but mark
New models – private providers, new brands, JVs, shared services
Price fixing v schedule of charges
FOI v competing
Commercial
Confidentiality
Transparency

6. Governance Itself Skills, Time Process, Info Systems, relationships
Voluntary
Professional
Diversity
Availability
Process
Performance
Skills, Time Process, Info Systems, relationships
Understanding
Independence

7. Independent Review of HEFCE Effectiveness
“How can HEFCE develop relationships with and assist governing bodies to fulfil the responsible role of effective governance of institutions and the duties set out in the FM?”
“HEFCE has not traditionally maintained a close relationship with governing bodies…. The shared concern of many Chairs of Council is whether past practice will meet future needs.”

8. Burslem Recommendation
“HEFCE should develop and implement a shared strategy for relationship management between the Council and HEI governing bodies.”

9. Draft Principles Governing body responsibility Institutional autonomy
Pro-activity
Formal documentation
Open communication
Direct engagement with Governors
Governors hold HEIs to account
demonstrable way, pulbic confidence
Council respects HEIs autonomy – diversity
Council…. trained by law
Risk Intervention
Self-regulation
Governors and bodies pro-active
Develop knowledge and skills and processes
Tell us if things go wrong
Formality – FM …. Limits us further, creates predicability in our behaviour
Openness – VC and Governing body. Grant letter – risk letter - ….
Direct engagement
Monthly alert
Annual meeting
Audit visits
LFHE training
Ad hoc presentations awaydays
Listen as well as present

10. Role of Governing Bodies
Set Strategy
Monitor Performance
Protect Autonomy
Stakeholder Confidence

11. Thank you for listening