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Prof. Dr. Rado Bohinc,
Professor of Law at Faculty of Social Sciences, University of Ljubljana and at Faculty of management, University of Primorska Former Minister for Science and Technology, (SI)
A primary question is:
Are universities under increasing pressure to transform?
business. . Traditional ways of governance prove inadequate.Why? Because: • global (increasing need for internationalisation) • and local (government. civil society) • environment have changed Risk free environment is replaced by market environment.
depending on the specific ways in which individual institutions operate. . capability and accountability of governing structures. there are also specifics.UNIVERSITY GOVERNANCE: COMMON PRINCIPLES AND SPECIFICS For the university governance in changing environment there are certainly some common principles regarding the quality. However. additional demands.
. WHY? Knowledge economy. Globalisation of higher education. Competition. especially in the areas of lifelong learning and technology transfer There are big challenges ahead for university governance.Universities are becoming powerful national and regional institutions. They have to undertake additional new roles. Universities will become much more difficult to manage.
Knowledge based economy. investment in intellectual capital has to be increased . • Hence. • National economic success will depend on the ability to increase the added value of products and services.
. • International expansion of universities is inevitable in order to be competitive.• Globalisation of higher education. • Students are becoming internationally mobile.
for research and research infrastructure. . etc . • • • • In addition they have to compete for: .financial resources .for contracts with business sector.Competition • Universities are increasingly having to compete nationally and internationally to attract best teachers and students.
while simultaneously fighting brain drain. 2007) • “The winners in the new global education race will be those countries with institutions that are the most international at every level”. will on a long term pay off richly. • Importing intellectual capital. August 20.The(global educational) race is on (Times. .
Consequence: Competition among universities Competitive universities have to provide high quality and productivity. .
• They have to transform from “traditional” universities enjoying steady state and risk free environment to entrepreneurial university competing in the changing market environment .Consequence: • Universities have to find additional sources of funds.
. although often disputed and criticized.Consequence: • Prospective students will look for the best educational (and research) environments. becomes an important information source in selecting an adequate destination. • Ranking of universities.
Task: Universities have to rethink their strategies and their corporate governance .
DILEMAS In these new circumstances. as it is today? . university governance need to be reflected in a new management style: • Away from consensus oriented collegial academy towards management by executive authority? • Do the universities need to be run as a business company. as a professionally managed company? • Do they need mighty executives or stick to numerous committees.
. without destroying something precious”.Richard Lambert stated in his lecture on university governance in a market environment: • “So the question is about how far you can bring management disciplines onto the campus.
appropriate salaries and benefits) • Governance (internal self governance. arrangements for job security. Altbach in The world class – university and ranking: aiming beyond status (UNESCO – CEPES. academic community has control over the central elements of academic life – admission of students. basic direction of the academic work of the institution) • Adequate facilities for academic work • Adequate funding . 2007) • Academic freedom and an atmosphere of intellectual excitement (including favourable working conditions. curriculum.Definition of a world-class university (Phillip G.
SOME DATA * Eurostat 2004 Annual expenditure on public and private educational institutions per student (PPS based on full – time equivalents)(€)* • EU 27 • USA 7.6 € .966.079.1 € 19.
Shanghai ranking confirms that despite the good performance of some EU countries: • The performance gap between European and American universities is large! • The best European universities lag far behind the best American universities! • European universities have much accumulated knowledge. but they are complicated to reform. .
EU’s universities reform should take place on both fronts: -autonomy and -efficiency of spending .
It is not simply that more money is good for research performance • The research performance of a university is positively affected by university autonomy • More money has much more impact when it is combined with budget autonomy! • Budget autonomy doubles the effect of additional money on university research performance! .
.EU Universities: elite.000€ per higher education student per year. universal? • According to the linear model of education systems EU is close to mass system. mass. • To close the gap with the USA. EU would need to spend – on average – an additional 10. • In a global competition EU higher education must be firmly wedded to elite values and practices no matter even it is a mass system.
. High quality senior management. Effective delivery of programmes. Efficient fund raising. This is a very demanding mix to deliver. Accountability and cautious financial management..Managing competitive universities Qualities to be delivered by management are the following: • • • • • • • • • Permanent strategic planning and business planning. Creation of strategic partnerships. especially in institutions that have a high degree of individual freedom. . Asset management including intellectual property. staff. Motivation and effective deployment of staff. Communication and information strategies.
larger universities are generally more competitive than smaller ones (example: “stronger. larger and fewer universities in Denmark”) • Merging universities and public (government) research institutes makes academic expertise available for educational purposes while simultaneously strongly improving research performance of the university (example: KIT Karlsruhe Institute of Technology) • Cooperation of institutes and universities (example: International Max Planck Research School .MP Institutes and universities – offer especially gifted PhD students from Germany and abroad excellent research conditions .Merging as a tool to improve competitiveness • Merging of universities .
Trend: Exporting higher education to developing and transitional economies Survey performed by Noir sur Blanc Agency on internationalisation of universities (1999) shows that: • 16% of universities (mainly from US) were seriously considering opening a campus abroad • 57% of universities have aims to open to the entire world • 41 % of universities see internationalisation as an “absolute priority” • Caution: The creation of global market in higher education could seriously affect the status and viability of universities in developing countries .
Innovative management of universities • Modernisation of universities needs to be accompanied by innovative management. likewise business companies increasingly employ innovation management techniques • Management of universities can be described as a: • management of diversity and complexity .
Universitiy for the future? • • • • • • • • Research Autonomus Integrated Decentralised Competitive Enterprenurial Well managed Inovative .
Noir sur Blanc.LITERATURE. Press release. University of Stratchlyde Business School. 2004 Seminar report. Why European higher education systems must be modernised?. Forum for the enhancement of learning and teaching. 2007 Internationalisation of Universities. 1998 The higher education manager’s handbook: Effective leadership and management in universities and colleges. 2001 European Commission. SOURCES • Resources on internationalisation. RoutledgeFalmer. Pergamon. 1999 Creating entrepreneurial university: Organisational pathways of transformation. The University of York. 2006 • • • • • . Managing universities in critical times.
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