1 European University/Business Forum Modernising governance structures within universities Reflections on the Governance Model of the University in Spain José Luis López de Silanes, Executive Chairman of the CLH Group and Chairman of the Social Board of the University of La Rioja Brussels, 5 February 2009

2 Governance Model in Spanish Universities (I)  High number of governing bodies  Heavy bureaucratic machine with little room for manoeuvre  Single-person and group governing bodies  Election of representatives varies according to sphere of action  Composition of Social Boards depends on laws of each Autonomous Regional Community  Rector elected by University Governing Council or through universal suffrage among all university members

3 Governance Model in Spanish Universities (I)  High number of governing bodies  Heavy bureaucratic machine with little room for manoeuvre  Single-person and group governing bodies  Election of representatives varies according to sphere of action  Composition of Social Boards depends on laws of each Autonomous Regional Community  Rector elected by University Governing Council or through universal suffrage among all university members

4 Governance Model in Spanish Universities (II)  Election of rector and main governing bodies is based on stratum representation mechanism  This system makes decision-making processes of Rector dependent on interests of the groups that supported his election  Management bodies formed by people with limited leadership experience  Excessive inbreeding in the university

5 Governance Model in Spanish Universities (II)  Election of rector and main governing bodies is based on stratum representation mechanism  This system makes decision-making processes of Rector dependent on interests of the groups that supported his election  Management bodies formed by people with limited leadership experience  Excessive inbreeding in the university

6 Social Boards  Organic Law 11/1983 of 25 th August on University Reform brought creation of Social Boards as participatory body for society in the university  Formed by public figures from cultural, professional, economic, industrial and social life  Functions:  Supervision of financial activities of the university and performance of its services  Promotion of cooperation of society in university financing  Relations between the university and its environment  Approval of university budget, long-term programming and annual accounts

7 Social Boards  Organic Law 11/1983 of 25 th August on University Reform brought creation of Social Boards as participatory body for society in the university  Formed by public figures from cultural, professional, economic, industrial and social life  Functions:  Supervision of financial activities of the university and performance of its services  Promotion of cooperation of society in university financing  Relations between the university and its environment  Approval of university budget, long-term programming and annual accounts

8  Greater autonomy  Professionally trained management  Greater weight of Social Boards  Separation of responsibilities  Modification of present legislative framework Towards a new University Governance model

9  Greater autonomy  Professionally trained management  Greater weight of Social Boards  Separation of responsibilities  Modification of present legislative framework Towards a new University Governance model

10 Different Governance models  Success of American university system  Model similar to that in business world regardless of whether university is public or private  Separation of functions:  Rector appointed by a Board and works as a Chief Executive Officer  Rector and his team appoint the deans and other authorities

11 Different Governance models  Success of American university system  Model similar to that in business world regardless of whether university is public or private  Separation of functions:  Rector appointed by a Board and works as a Chief Executive Officer  Rector and his team appoint the deans and other authorities

12 Different Governance models  Success of American university system  Model similar to that in business world regardless of whether university is public or private  Separation of functions:  Rector appointed by a Board and works as a Chief Executive Officer  Rector and his team appoint the deans and other authorities

13  Association that brings together university governing bodies from all over the world  Initiative aiming at sharing experiences, common problems and their possible solutions International Association of University Governing Bodies

14  Association that brings together university governing bodies from all over the world  Initiative aiming at sharing experiences, common problems and their possible solutions International Association of University Governing Bodies

15  Association that brings together university governing bodies from all over the world  Initiative aiming at sharing experiences, common problems and their possible solutions International Association of University Governing Bodies

16 European University/Business Forum Modernising governance structures within universities Reflections on the Governance Model of the University in Spain José Luis López de Silanes, Executive Chairman of the CLH Group and Chairman of the Social Board of the University of La Rioja Brussels, 5 February 2009