Why have a new Higher Education Code of Governance?

The Committee of University Chairs (CUC) has published the new Higher Education Code of Governance and warns:

• Higher Education Institutions (HEIs) will need more than a strong set of processes and procedures to guarantee good governance, and
• why having an effective board secretary could be as, if not more, important.

Why publish a new Code?

Good governance practice is complex and goes beyond a set of processes and procedures. Good governance requires an organisational culture which:

• gives freedom to act
• establishes authorities and accountabilities
• has relationships which are based on mutual respect, trust and honesty.

The CUC Code provides an effective governance framework and is explicit that simply adopting the Code does not guarantee successful governance. Institutions will need to use a range of tools to create a strong governance culture. It also does not stand still and trends and views on what constitutes good governance change overtime.

Over the last few years HEIs have experienced unprecedented change in their operating environment:

• funding pressures
• a new regulatory framework
• the growth of alternative providers
• challenging public perceptions on the value of HE
• socially distanced campuses.

These have placed enormous pressures on HEIs and their governing bodies.  As they grapple with the challenges of sustainability, innovation and continuous improvement in standards and services, the need for effective stewardship by governance bodies has never been so great.

In this context, having a Code which identifies the foundations for good governance and the key values and practices that form the basis of an effective governance framework is essential. By adopting the provisions of the Code, governing bodies

• can demonstrate leadership and stewardship in relation to the governance of their own institutions
• help protect institutional reputation
• give confidence to key stakeholders and partners, the student community, and society at large.

What can you expect from the new Code?

Producing any Code has its challenges and this was no exception.

A Code of Governance cannot realistically account for all of the complexities of governance and is just one tool for HEIs to use.  It  will never be the solution for all governance issues and an expectation that it should be is unrealistic!

Some high profile corporate governance failures in the private sector have created pressures and expectations that Codes have a role to play beyond their aims and objectives.  A Code of Governance is not a panacea for the world’s ills and cannot account for the behaviour of individuals.

It is as important to untangle the different objectives we attribute to governance, and deal with them differently as it is to recognise the complexity and diversity of organisations in addressing governance concerns. This is especially true in Higher Education. Universities are diverse, complex and autonomous institutions with governance arrangements that differ depending on the size, location and what stage they are at in their evolution.

Therefore, while the trend in other sectors means that Codes lean towards more prescription, the CUC has steered away from this. We believe it is not desirable or realistic when the solutions to governance issues in one institution will not necessarily work elsewhere even if the problem is the same.

What are the main differences in the new Code?

The new CUC Code, rather than seeking to standardise practice, celebrates the strength that is derived from practices designed to support institutions’ individual missions. It focuses more on principles than process and accordingly and can be used by a wider range of HE providers.

The new Code is more forward looking. It places a greater responsibility on governing bodies to oversee an effective organisational and board culture based on mutual respect, constructive challenge and informed and transparent debate which will enable the institution to thrive.  It is clear that effective governance is built on strong and enduring relationships that engender trust and cooperation between the Vice-Chancellor and their Executive Teams, Governing Bodies, and Secretaries.

It attributes more importance to the board secretary’s role who plays centre stage in developing key relationships in the governance arena. The board secretary “ should be senior and independent enough to ensure the governing body and the Executive acts in a way which is compliant with the institution’s regulations and is able to challenge when this is not the case.”

The Code also places more emphasis on board composition and the need for diversity of skills, perspective and experience. This is bolstered by a requirement for governing bodies to ensure the institution is accessible and relevant to its local communities. They should be open to, and engage with, their local communities in identifying their role in delivering public/community benefit and economic, civic duties, cultural and social growth.

Ensuring future HE governance effectiveness will definitely be more challenging and boards need to be equipped with the skill to develop cultures which support a more commercial mindset and the long term sustainability and success of the institution.  For all these reasons an effective board secretary is an asset worthwhile investing in, however, everyone has a role to play!

Governance cannot stand still and needs to evolve. How governance develops in institutions is a decision for those institutions.  The CUC Code is a framework to support institutions and further guidance on good practice which engenders positive governance outcomes will continue to be developed by the CUC in collaboration with other sector bodies.

• Download the Committee of University Chairs’ Higher Education Code of Governance September 2020