Task Force on Governance Reflections

1. Task Force onGovernanceReflections Jon Hagler May 26, 2009

2. Introduction • Privileged to be with you today • A very important subject • How can I add value? • A different perspective • A lifetime of observing governance • Connect the work of Vision 2020 to this task force • Hopefully, some useful suggestions • Emphasis on Process, Not Details • Format: some remarks, then dialogue

3. Does Governance Matter?One Perspective • Half a century of observations, experience, and involvement • As analyst, investor and participant • A corporate example of failed governance • A non-profit example of failed governance • Other examples • Adelphi U, Enron, Tyco, World Com, MA HMO’s, Banks, Bear Stearns, AIG, etc., etc. • Answer: It has always been crucial, and it will remain crucial

4. Role of 2020 in Governance • Prior Aspirational Studies of the ’60’s & ’80’s: important in TAMU evolution • Need for broad involvement from U community to consider anew • Poor Vision or Bad Strategies can kill; organizations need an over - arching Vision • Otherwise, Governance to what end?

5. Highlights of Vision 2020 • 250+ person task force • 12 Imperatives • Regent’s formally endorsed, citing “generational” nature of work • Initiated by President Bowen • Embraced by President Gates • Embraced by President Murano • Maybe not a bad idea to use it as a starting point

6. 2020 on Governance • First par (in Governance Imperative) • Vision, environment, resources, leadership, Regents take high ground (policy), clear & cooperative relationships between U & System, System admin must acknowledge U’s role as CRU with national peers, quality. • U admin must make decisions through process of openness and appropriate faculty and staff participation • Faculty Senate statement on shared governance, 1998-1999 (Speaker Kaplan) advance materials for Task Force

7. 2020 on Governance, Imperative 10 • Five Precepts • Ten Goals, one of which • “Structure U so that decisions are made by the appropriate and most knowledgeable party regardless of level”

8. 2020 on Governance: Summary • Dealt with Strategic Vision • Said Enlightened Governance and Leadership was an Imperative • Was explicit about several tenets of good governance, such as • Quality at the top, in recruiting, and in decision making • Decisions through a process characterized by openness and appropriate faculty and staff participation

9. 2020: Did We Forget Students? • 2 on 12 member Exec Committee • 8 others on theme groups • Only two imperatives do not directly benefit students (9 & 12) • Are the purpose of our existence • Reality of transitional existence to another stakeholder’s status (AFS) • But should have a defined role

10. 2020 in 2009One Old Man’s Perspective • First Decade: Progress in some important areas • AMP an important collaborative initiative • But trends in governance not favorable* • Opinion: Not on a 2020 success trajectory, and most important missing ingredient is governance • Appears Chancellor and Regents have repudiated, by their actions, Vision 2020 – those who worked on it and the Regents who endorsed it. • Guess: Without a major course change on governance, failure of 2020 appears inevitable

11. * Adverse Trends in Governance • Breakdown in process of openness and appropriate involvement; • Flawed process of Presidential and VP appointments • If I understand, explicit rejection of basic tenets of “shared” governance • If I understand, inappropriate involvement by System in flagship university policy and administration, probably in other areas

12. Am I too paranoid? • Is governance unimportant? Doesn’t vibrancy of core mission suffer if faculty and other stakeholders are treated as either mere employees or as incidental? • Lombardi Study 2002: Research U competitiveness (i.e., Vision 2020) comes from high quality within both academic core and administrative shell of U • In the more competitive research U’s, a pattern of delegating substantially all academic and administrative authority from systemto campus is evident.

13. Am I too paranoid? • Pres Bowen & Regents agreed on 2020 mission and on governance • Pres Gates articulated and practiced shared governance • Spkr Kaplan / Faculty Senate ’98-’99 endorsed • University Leadership Council • University of Arizona • Believe states of CO, Iowa, Hawaii have introduced codes of fiduciary conduct • Question: why do we want to return to the dark ages?

14. So, What Now? • Have to face issue; task force is appropriate and essential, in my opinion • If you don’t speak for the university community stakeholders, who will? • This is best, perhaps only, chance to confront issues during next decade • One Danger? Settling for rule making on subsidiary issues

15. So, What Now? • Have to capture the intellectual high ground on • Why good governance at all levels is crucial • Why we fall short now: explicit about failures • The genesis of our troubles is political interference • Must move from hierarchical to collaborative process • Not a challenge to power, but abuses of good process • Heavy emphasis on appropriate involvement • System meddling in flagship a No No. This will ruin us. • Faculty & President: need to focus on process, agree on rules • Enlightened and appropriate decision making is the goal. • This is important enough that stakeholder activity/interest must increase a lot to make any difference

16. Ideas/Next Steps • Make the case for good governance process as a true imperative • Develop support in all stakeholder communities • Begin implementing it in flagship • Plan for regeneration/sustainability • Never, never, never, give up