Governance of Australian Universities
Governance
Governance refers to the systems and processes that direct, lead, control, or govern, an institution.
Governance allows for the appropriate direction and use of power and authority in organisations, promoting effective decision-making capacities, risk management, and the ability for the organisation to ultimately meet its mission.
Good governance ensures that best practice is adhered to in the systems - or frameworks - in place for governing of an institution. Areas of best practice include leadership of the institution, accountability, transparency, and integrity.
The Australian Institute of Company Directors (AICD) outline ten principles of good governance. These ten principles include mission, culture, independent judgement, skilled stewardship, risk tolerance and oversight, diligence, delegations to management and committees, appointment of executives, stakeholder engagement, and evaluation of the board’s performance.
In universities, governance arrangements are essential to ensure that our institutions can continue to achieve their public good missions.
University Governance
Each university in Australia is established under similar, but not identical, pieces of legislation from their state, and each university is different in how the issues they face influence their planning and decision-making processes. Universities are large, complex institutions, with imperatives for public good, academic excellence, and operational and financial sustainability.
Alongside their responsibility to teach and educate students, universities also have a responsibility to contribute to research - both domestically and internationally. They have significant budgets and infrastructure, alongside large employee numbers and student bases, and make varied vital contributions to local, state, and national communities.
As significant contributors to Australian society and economy, and integral institutions in the future of skills and productivity for individuals, university governing bodies and strong frameworks for governance are integral. Specialised professional skills are required on governing bodies to guide and manage the longevity and sustainability of these important institutions.
For universities, governance is the framework that allows the university to meet its mission of education and research, and its imperatives for public good, academic excellence, and ongoing financial and operational sustainability in its local context.
University Governance in Australia is influenced by many factors, including legislative changes and funding obligations.
The Governing Body
The governing body is responsible for oversight of the university mission, strategy, financial sustainability, commercial and legal obligations, risk frameworks, and the overall delivery of outcomes for the public good.
All universities have a governing body, often called either the Council, Senate, or Board/Board of Trustees. Governing bodies are composed of between 10 and 25 individuals, according to the enabling Act of Parliament for the university. They are made up of different member types— for which the rules of appointment and membership are legislated by the university Act of Parliament.
These membership types include:
Ex-officio members — these are members of the governing body as a result of their role or position with the university. For example, the Chancellor and some senior staff members. Most universities have ex-officio members including the Chancellor, Vice-Chancellor, and the Chair of the Academic governing body.
Appointment by the Minister — most university Acts outline the responsibility for the Minister for Education within their State or Territory of establishment to appoint a member/s to the university governing body and how this can take place. The Minister is then accountable to their Parliament for their use of Ministerial powers in choice.
Appointment by the Governing Body — sometimes called an Independent Member. The Act outline how many individuals the university governing body will appoint as members. These members are typically chosen through use of a skills matrix to ensure that the governing body contains the appropriate skills for the university.
Elected members — Elected members are typically staff and student members. Some universities have it legislated that a university will have a postgraduate and an undergraduate member elected, whereas others are legislated to have one student member, which could be from any area of the university.
Importantly, all of these members have the same responsibility — to act in the best interest of the university. As independent members who may have other commitments.
The governing body of the university is responsible for the general direction and oversight of the university. The governing body agrees the strategy of the university and oversees the university’s performance, while overseeing and monitoring risk, financial positions, and appointing and monitoring the Vice-Chancellor — ensuring that the university is able to achieve its mission.
Governing bodies delegate functions to the management of the university. While the governing body of the university is the central authority for decision-making in all aspects of university life, the day-to-day management of these functions are delegated to the Vice-Chancellor as the Chief Executive Officer of the university, or the Academic governing body as the body that oversees curriculum and standards.
The Chancellor
The Chancellor is the formal head of a university, acting as the Chair of the governing body. Chancellors are responsible, along with the governing body, for university governance, and are expected to exemplify best practice in governance while working with the university community.
Chancellors have often held senior positions in business, government, public service, and/or the not-for-profit sector, and can leverage their networks from these roles in their workings and support for the university.
The role of the Chancellor and their relationship with the university Vice-Chancellor can be likened to the role of the Chair of a company board, and their relationship with their company CEO.
Chancellors play prominent representativeroles for the university, presiding over ceremonial occasions such as graduations. Chancellors in this context are symbolic of the values and educational purpose and mission of the university. As such, they seek to exemplify the high standards of the university both in the university community, and its wider community.
Aside from governance leaders and representative roles, Chancellors are also advocates for the interests of their university, with extensive knowledge of their university and ongoing, visible commitment to the university’s mission.
Chancellors who exemplify ethical governance and integrity will actively encourage the collaborative contribution of all members of the governing body — promoting open discussion, transparent decision-making, and a culture of collaboration and collegiality.
Articulating the roles of governing body members falls within the remit of the Chancellor, ensuring that each member of the governing body is aware of their responsibilities and the expectations as an important part of the governing body.
Responsibility of Vice-Chancellor appointment, performance, and remuneration is also the responsibility of the Chancellor — with the governing body. The Chancellor supports the appointment of a new Vice-Chancellor to the university, on the retirement or resignation of the prior incumbent. This requires consideration of the remuneration of the incoming Vice-Chancellor, and the appropriateness of the remuneration in alignment with the responsibilities held and the institutions size and mission. The Chancellor and the governing body monitor ongoing Vice-Chancellor performance, and ensure that practices in management are aligned with governance of the university.