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

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

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

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

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

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.”

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

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 email alert Annual meeting Audit visits LFHE training Ad hoc presentations awaydays Listen as well as present

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

Thank you for listening s.egan@hefce.ac.uk