Western Washington University Board of Trustees Working Session Friday, September 8, 2017 Location: Time: Washington Athletic Club, 1325 Sixth Avenue, Seattle, Washington Breakfast Available at 8:00 am 1. CALL TO ORDER 8:30 am 2. WELCOME AND OPENING REMARKS 8:30 – 8:40 am 3. STRATEGIC PLANNING DISCUSSION WITH TRUSTEES AND UNIVERSITY LEADERSHIP 8:40 – 12:00pm NOON – Lunch Available 4. STRATEGIC PLANNING DISCUSSION WITH TRUSTEES AND UNIVERSITY LEADERSHIP, cont. 12:30 – 2:00 pm Break (15 minutes) 5. BOARD GOVERNANCE 2:15 – 4:30 pm A. Board Assessment B. Board Committee Structure Saturday, September 9, 2017 Location: Time: Washington Athletic Club, 1325 Sixth Avenue, Seattle, Washington Breakfast Available at 8:00 am 6. EXECUTIVE SESSION WILL BE HELD TO DISCUSS PERSONNEL ISSUES AS AUTHORIZED IN RCW 42.30.110(1)(g) 8:00 – 11:00 am 7. CLOSING REFLECTIONS 11:00 – 12:00 pm 8. ADJOURNMENT 12:00 pm 1. Call To Order 2. Welcome and Opening Remarks 3. Strategic Planning Discussion with Trustees and University Leadership WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: Sabah Randhawa, President DATE: September 8, 2017 SUBJECT: Strategic Planning Discussion PURPOSE: Discussion Item Purpose of Submittal: President Randhawa and his leadership team look forward to the Board’s engagement in Western’s strategic planning process. Supporting Information: • • • • Strategic Planning Process – Summary Strategic Plan: Towards an Aspirational Vision Mission Statement and Strategic Plan – Draft The Board’s Role in Strategic Planning Strategic Planning Process: Summary Prepared by the Strategic Planning Committee Co-Chairs: Brian Burton and Pacqui Paredes Mendez The WWU University Planning and Resources Council (UPRC), at its October 19th meeting, voted unanimously to create an ad hoc committee charged with writing a new strategic plan for WWU. The committee was to be composed of five faculty, one professional staff, one classified staff, two students, two members of the executive administration, one community member who is a WWU alumnus, and one member of the WWU Board of Trustees. In addition, Brent Carbajal (Provost) and John Bower (UPRC chair) were chosen to be “advisory members” of the committee. UPRC also voted to build this committee through nominations from the following bodies: • • • • • • Faculty – WWU Faculty Senate and UFWW Professional Staff – Professional Staff Organization Classified Staff – Washington Federation of State Employees, Public School Employees Students – Associated Students Community Member/Alumnus – President Randhawa WWU Board of Trustees – President Randhawa All nominees were confirmed by UPRC at its November 30th meeting. The committee is constituted as follows: • • • • • • • • • • • • Eric Alexander – Professional Staff Organization Megan Spiegel – Public School Employees of Washington Sabrina Chou – Associated Students of WWU Lauren Vásquez – Associated Students of WWU Vicki Hsueh – Faculty Senate Nabil Kamel – Faculty Senate Paqui Paredes – Faculty Senate (Co-chair) David Leaf – Faculty Senate Kristin Mahoney – United Faculty of Western Washington Brian Burton – Administration (Co-chair) Kathy Kitto – Administration Tony George – Community/Alumni In its first meeting on Friday January 13th, the committee was charged by President Randhawa with developing a transparent and inclusive process that will culminate in the drafting of a new strategic plan for Western Washington University that will set priorities and will inform decisions regarding resource allocation from AY 2017-18 through AY 2023-24. President Randhawa also charged the committee with the development of a list of aspirational peer institutions. The committee’s first task was to hear from people both inside and outside the University community. We took two approaches to getting feedback. First, we conducted nearly 30 focus group sessions and open forums on and off campus. Second, we conducted two surveys, one of students, staff, and faculty, and one of alumni. We received more than 1,000 usable responses to the first survey (about 500 from students, 200 from faculty, and more than 150 from staff, and more than 100 from people who have multiple roles at Western), and about 500 usable responses to the alumni survey. Once the survey and focus group results were in, by early spring, we worked to identify common themes from the surveys and focus groups. From the themes, we worked on goals that would push us in areas in need of improvement, as well as in areas Western was seen as already strong. The next step we took was to set objectives related to each goal. At that point, near the end of spring quarter and after weekly meetings throughout the quarter, we sent the goals and objectives to campus for feedback. We received feedback directly through e-mail, through the anonymous Qualtrics survey link, and at various meetings, including that of UPRC. Through the process of receiving that feedback, it became clear to us that further conversation was needed, not just about the goals and objectives, but also about the mission, vision and values of the university, since these are framing elements that help elucidate the goals and objectives. We also realized that having the metrics in the document would help flesh out the goals into more tangible elements. With all of this in mind, the committee worked during the summer on revising the University’s mission and vision statements, as well as adding framing narratives to the goals and objectives. At some point in early Fall, we will be sharing a revised and expanded document with the campus community, one that will include mission, vision, values and metrics. We will again hold focus groups on and off campus to gather final input on the document and its contents. Once that feedback is received, we plan to revise the document and submit it to President Randhawa, from whom it will come to the Board for final approval. Vision Framework STRATEGIC PLAN: TOWARDS AN ASPIRATIONAL VISION Prepared by the University Leadership Team Institutional Mission and Values External Drivers Changing student demographics Greater competition for students Current, projected workforce needs & job markets Stagnant graduation rates, growing achievement gaps Globalization & role of technology Increasing global demand for education Current political/social environment Strategic Goals and Objectives G1. Transformative Education A: Liberal arts and science core B: General education/graduation requirements Etc. G2. Richness/Plurality of Place G3. Caring Community G4. Justice and Equity Vision Framework Western…higher education leader in student preparation & success Western’s opportunity for distinction guided by    Internal Environment State and federal funding trends Need to increase faculty, support staff Need to upgrade, expand infrastructure Growth in demand in STEM, health disciplines Perceived threat to the Liberal Arts Need to increase diversity, inclusivity 1 Inclusive Excellence Global Diversity Washington Impact Vision Framework SIGNATURE GOALS AND OBJECTIVES Please see the attached document. SIGNATURE THEMES Western’s opportunities for institutional distinction will be guided by three signature themes: Inclusive Excellence, Global Diversity, and Washington Impact. The themes are designed to provide Western with a competitive edge, a stronger institutional identity and increased opportunity to have a positive impact in Washington State, nationally and internationally. Inclusive Excellence Higher education has never been more important to the economic and social development of our communities and our global society. It is now a precondition for upward mobility. Workers with a bachelor’s degree or higher have accounted for 73% (8.4 million) of the 11.6 million jobs gained in the recovery after the recession. Yet, higher education is faced with pressures and challenges that we must address, intentionally and effectively. Only 53 percent of students who enrolled in 2009 in four-year college degree programs graduated in 2015. Between 1970 and 2010, bachelor’s degree attainment rates for students from families with income in the top quartile nearly doubled from 40% to about 78%. In contrast, degree attainment for students from the bottom family income quartile has remained essentially constant at about 9%. We are going to see increasingly more students attending our universities from the bottom family income quartiles, which also are more ethnically and racially diverse. Education is the most powerful social and economic equalizer. Our most important challenge then is to advance inclusive excellence, that is, increase the number of graduates and student success, while eliminating achievement gaps for students from diverse and under-represented socio-economic backgrounds. Western has a great platform to advance access and completion, and we have an opportunity to be an exemplar in this area. Western’s six-year graduation rate 70 percent is one of the best in the region. The faculty is committed to high quality of education and to the preparation of our graduates so they can be successful in a continuously changing work and social environment. Global Diversity We also need to make sure that Western more closely reflects the global diversity in which we live and which we seek to advance. Washington’s, and our nation’s, future population growth is projected to come from groups that historically have been less likely to participate in and complete postsecondary education. Diversity and inclusiveness means reaching and including more of the underrepresented students and first generation students in the state of Washington in our academic programs. 2 Vision Framework Globally, the demand for post-secondary education is going to increase significantly as the world population approaches 10 billion by 2050. Technology will continue to be a significant driver in bringing the world closer, increasing awareness and knowledge across cultures and countries. Global diversity also means that we cultivate global citizenship in our graduates so they have the perspectives to make well informed judgements, the curiosity to learn about others’ values and cultures, and the wisdom to challenge their own mental models. Student learning must encompass the basic tenets of human thought, critical and creative thinking, quantitative and information literacy, and an understanding of major political, social and intellectual trends. Excellence and diversity go hand in hand. Our community will be richer and stronger if members of our community—students, faculty, staff, administrators—are drawn from the widest possible range of socioeconomic and multicultural groups. We strive to expand and deepen our work to build a diverse, inclusive and equitable community and culture: in terms of access and success, curriculum, learning, shared experiences, embedded values and beliefs, and engagement opportunities for reflections to create enduring change. At Western we strive to create an environment where teaching and learning are the most important activities, where we foster lifelong learning, and where there is respectful discourse in a safe environment. Western is a place where we take pride in our traditions and where we have hope for the future and a commitment to progress and positive change. Washington Impact The presence of an educated workforce is essential for producing positive social impact in all sectors of the economy. The Georgetown Center on Education and the Workforce identifies Washington State as one of the top five states in the country for job openings requiring college credentials. It is estimated that in the next decade 67 percent of the jobs in Washington will require some form of post-secondary education. In order to keep up with population growth and workforce demands, about 360,000 more adults will need to complete high school and about 500,000 will need some form of college degree. Additionally, there are about 700,000 adults in Washington who have earned some college credit but haven’t completed a degree; nationally this number is 35-40 million. To meet this challenge, the 2013 Washington Student Achievement Council defined broad educational goals in its Roadmap document: By 2023 all adults in Washington, ages 25-44, will have a high school diploma or equivalent and at least 70 percent of Washington adults, ages 2544, will have a postsecondary credential. Currently, these numbers are 90% and 51%, respectively. To contribute to the future workforce needs in Washington and the region, Western will expand access to its programs, increase persistence and graduation rates, and partner to offer programs and credentials to place-bound and non-traditional students. 3 Vision Framework At the same time, we must prepare our students so they can be successful in a continuously changing work and social environment. Technology and automation have been driving employment trends. Today’s graduates will change careers multiple times and many will have jobs that do not even exist today. Western’s focus on developing the whole person and its strong core liberal arts education provides our graduates with a competitive advantage to be effective citizens of the nation and the world and to effectively navigate the workplace. Making progress on critical issues (environmental sustainability, climate, human health, access to safe food and clean water and air, economic vitality, cultural diversity, quality of life) in Washington and beyond require nurturing a faculty culture of innovation that cuts across disciplines and integrates knowledge and exploration in its undergraduate and graduate programs. Western is well positioned to increase its contributions to the state of Washington and to be a catalyst in regional economic and social development. 4 Vision Framework Mapping Themes and Goals/Objectives THEMES GOALS Goal 1: Transformative Education Strengthen liberal arts & science core Review/update general education and major graduation requirements Expand access to undergraduate & graduate fields of study Increase affordability Access to high-impact educational experiences Support innovation Increase scholarship to address societal problems Support student engagement in faculty research, creative activity Enable/incent work across disciplines Align curricular revisions, budgeting, capital planning to respond to changes Provide IT and academic infrastructure Expand programs in under-served areas outside Bellingham Goal 2: Richness/Plurality of Place Support experiences that develop understanding of the region, communities Honor, respect rich cultures Inclusive Excellence Global Diversity Washington Impact x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Expand engagement with communities Weave sustainability, equity in curriculum, practices Provide international experiences Goal 3: Caring Community Enhance shared governance & transparency Implement strategic enrollment plan Ensure support services serve all students and help ensure their success Improve working conditions for faculty, staff, students Provide competitive compensation & ensure well-being of faculty, staff, students Expand networks with alumni, partners Goal 4: Justice and Equity Foster welcoming environment Recruit retain diverse faculty, staff, students Expand, deliver curricula that engage issues of equity, power, privilege Expand professional development opportunities for staff, faculty Recognize/support community partnerships to advance equity and justice Demonstrate full commitment to preventing sexual and other types of violence x x x x x x x x x x x 5 x Mission Statement and Strategic Plan - DRAFT Prepared by the Strategic Planning Committee Mission WWU provides the finest public comprehensive education through rigorous student-centered focus on the liberal arts and sciences, affordable tuition, commitment to fairness and equity, deep engagement in community and global life, and focus on the skills and capacities to explore widely and deeply, think critically, reason empirically, communicate clearly, and connect ideas creatively. Vision Western Washington University prepares and inspires individuals to achieve their aspirations and address the world’s most challenging questions. Values Academic Quality Intellectual Inquiry Student Success Career Preparation Liberal Arts and Sciences Civil and Open Discourse Student Engagement Equity and Justice Stewardship Community Engagement Place Caring Goals and Objectives Western provides a transformational education founded on the liberal arts and sciences and based on innovative scholarship, research, and creative activity to foster the development of engaged members of 21st-century global society Western´s educational experience is grounded in an active teaching and learning environment with a liberal arts and sciences foundation and robust cocurricular, internship, research, creative, and service learning opportunities. Western prepares students to be successful and engaged members of society, providing the tools to work across disciplines to identify and creatively solve key societal problems, both local and global. Western supports the growth and sustained flourishing of programs, departments, and centers that do this work. A. Strengthen the delivery of the liberal arts and sciences core to ensure student access to the broad exploration of knowledge of our undergraduate education B. Review and update general education, major graduation requirements, and graduate programs to ensure they foster the knowledge, skills, and habits of mind required of a fast-changing world in the 21st century. C. Expand student access to and increase student success in rigorous baccalaureate and graduate major fields of study D. Increase affordability of both undergraduate and graduate education at all Western’s locations E. Ensure that all students have access to high-impact educational experiences inside and outside the classroom F. Support innovation in curricula, scholarship, research, and creative activity G. Conduct scholarship, research, and creative activity that furthers efforts to answer important questions and solve societal problems. H. Support undergraduate and graduate student engagement with faculty in scholarship, research, and creative activity. I. Provide tools and experiences by which students, staff, and faculty can work across disciplines to identify and creatively solve key global, environmental, and societal challenges J. Align curricular revision, budgeting, capital planning and development to allow for agility in programs and course offerings to respond to changes in student interests, state needs, and knowledge production K. Provide technological and other academic infrastructure to support curricular innovation, research, scholarship, and creative activity, civic engagement and social justice L. Enhance and augment affordable programs in areas underserved by four-year higher education outside Bellingham Western acknowledges and honors the richness and plurality of place, promotes knowledge and engagement grounded in an understanding of the region and its communities, and sets them in a global context At Western, we engage place in all of its complexity. Place calls us to recognize debts and obligations to indigenous nations, to the environment and sustainability, and to diverse and rich cultures within and across borders. Place inspires us to study with rigor and precision the complexity, vibrancy, and beauty of land and sea in the Pacific Northwest. Place moves us to think and act thoughtfully and creatively about where we are and how we connect with the wider world. Place beckons us to look at the past with care and to envision the future with curiosity, innovation, and creativity. A. Support curricular and extra-curricular experiences that help develop an understanding of the region and its communities in all their natural and cultural richness and complexity B. Honor and respect the diverse and rich cultures, traditions, and knowledge of the Native nations in the region C. Expand Western´s engagement with local, state, national, and international communities D. Weave ecological sustainability and social and economic equity into and through our practices and curriculum E. Provide experiences by which students can learn about communities and the environment in other regions in the world Western is a caring community where all members are supported, where everyone has a voice and the ability to be heard, and where the definition of community is broad and inclusive Western’s greatest strength is the outstanding students, faculty, and staff who make up its community. Western supports an inclusive governance structure and provides a learning and working environment in which all can thrive. A. Improve shared governance structures and transparency to ensure that students, staff, and faculty all feel included and empowered in the university’s decisions and direction B. Develop and implement a strategic enrollment and recruiting plan addressing resident, non-resident domestic, graduate, and international students C. Ensure that student support offices effectively serve all students and graduates and help ensure their academic and personal success at Western D. Improve working conditions for students, staff, and faculty to make WWU a model in fair labor practice E. Provide competitive compensation for, and support the development and wellbeing of, students, staff, and faculty F. Expand networks between alumni, student, staff, and faculty Western is committed to justice and equity Western sees equity, justice, inclusion, and diversity as fundamental principles calling for authentic engagement. Western acknowledges that institutions of higher education have traditionally failed to meet the needs of people of all races, ethnicities, creeds, socioeconomic classes, gender identities, sexual orientations, and disability statuses. WWU is committed to transforming policies, structures, and practices to ensure meaningful inclusion. A. Foster a campus climate, including the physical environment, that welcomes and affirms the diversity of individuals, groups, and cultures, promoting positive relations across difference B. Implement model practices for the recruitment and retention of a diverse student body, a diverse staff, and diverse faculty C. Strengthen, develop, and deliver curricula and other programming that engage issues of access, equity, power, and privilege across disciplines D. Expand professional development opportunities for all staff and faculty that provide for additional leadership capacity in the effort toward equity and justice E. Recognize Western’s indebtedness to Native nations, and expand and support respectful collaborative relationships with community partners and underrepresented groups to advance equity and justice F. Demonstrate full commitment to preventing sexual and other types of violence, ensuring the safety of all campus members The Board’s Role in Strategic Planning Western Washington University September 8, 2017 Dr. Cathy A. Trower 2 1. 2. 3. 4. 5. 6. 7. 8. 9. Successful Strategic Planning Nonprofits in General A clear and comprehensive grasp of external opportunities and challenges A realistic and comprehensive assessment of the organization’s strengths and limitations An inclusive approach An empowered planning committee Involvement of senior leadership Sharing of responsibility by board and staff members Learning from best practices Clear priorities and an implementation plan Patience 10. A commitment to change tcc group – Briefing paper: “Ten Keys to Successful Strategic Planning for Nonprofit and Foundation Leaders.” For Boards 1. Model a strong partnership with staff 4. Clarify specific roles and expectations for board members 2. 3. 5. 6. 7. 8. 9. Develop initial aims and scope Call for strong, inclusive process design and effective facilitation Make the commitment Participate, exercise patience, be passionate Learn, learn, learn Expect the unexpected Be visionary, make the tough choices, and allocate resources to the plan 10. Govern strategically Stern, G.J. (2013). “Shaping the Future: The Board Member’s Role in Nonprofit Strategic Planning.” STAGE I. Strategic Thinking / Sense-Making Make sense of relevant trends, the organization, the environment, and the competition.   Senior Staff Role Initiate strategic thinking process. Actively participate with the board in discussions. • • • •  Present issues. Inform and educate board. Discuss context with board. Make underlying assumptions explicit. Summarize output and implications.  Board Role Actively participate with the staff in discussions. • • • • • Bring outside perspective and insight. Tap collective wisdom. Test consistency of senior staff’s thinking. Pose thoughtful questions. Collaborate with senior staff. Adapted* from Nadler, D.A., Behan, B.A., and Nadler, M.B. (2006). Building Better Boards: A Blueprint for Effective Governance. San Francisco: Jossey-Bass, p. 135. * What you see here differs somewhat from Nadler et al based on my own thinking and experience. STAGE II. Strategy Development and Decision-Making Develop substance for the plan and make fundamental choices about strategic initiatives; place strategic bets. Senior Staff Role Board Role  Review with board.  Conduct ultimate review and approve major decisions.  Develop proposals for critical decisions on direction and major resource allocations.  Make critical decisions.  Offer input for senior staff’s consideration. Adapted* from Nadler, D.A., Behan, B.A., and Nadler, M.B. (2006). Building Better Boards: A Blueprint for Effective Governance. San Francisco: Jossey-Bass, p. 135. * What you see here differs somewhat from Nadler et al based on my own thinking and experience. STAGE III. Strategic Planning Translate critical decisions into priorities, objectives, and resource allocations to execute strategy. Senior Staff Role     Develop and own the plans. Explore & explain options. Board Role   Ensure plan supports objectives and strategy, and is consistent with mission. Present plans to board for review. Critically review strategic plan. Ensure trustees understand plan including: • • • • •  Resource allocations Intended outcomes Possible unintended consequences and risks Timelines Benchmarks Approve the plan. Adapted* from Nadler, D.A., Behan, B.A., and Nadler, M.B. (2006). Building Better Boards: A Blueprint for Effective Governance. San Francisco: Jossey-Bass, p. 135. * What you see here differs somewhat from Nadler et al based on my own thinking and experience. STAGE IV. Strategic Execution Undertake initiatives consistent with the strategic plan; adjust over time to account for environmental changes and outcomes. Senior Staff Role    Ensure resources and leadership for effective execution are in place. Monitor progress of execution. Adjust execution or plan in response to circumstances and outcomes. Board Role   Review progress on key initiatives vis-à-vis explicit milestones & benchmarks. Discuss pace and adjustments required in response to circumstances and outcomes. Adapted* from Nadler, D.A., Behan, B.A., and Nadler, M.B. (2006). Building Better Boards: A Blueprint for Effective Governance. San Francisco: Jossey-Bass, p. 135. * What you see here differs somewhat from Nadler et al based on my own thinking and experience. Management does strategic plan with cursory review by the board [rote approval] Two Extremes Board leads strategic plan [infringes on CEO’s legitimate responsibility] VALUE-ADDED ENGAGEMENT • Board participates in the strategic thinking and decision-making process, adding value without over-reaching. • The CEO and senior team lead and develop the strategic plan with board member’s input. • Board members have ultimate responsibility for approving the strategy and the metrics to be used to assess its progress. Nadler et al (2006), p. 136 7 8 Shinn (2017) Strategic Thinking & Planning in Higher Education AGB. Let’s take this further into higher ed…  Too many university strategic plans represent “either a defense of an unsustainable status quo or a quest to model the institution after revered peers it cannot afford to emulate” (p. 5).  Strategic thinking is a mode of reflection that blends appreciation for the institution’s past with a focus on its future through deep mining of relevant information with creative visioning [along with] respect for the particular while imagining the whole (p. 5).  Have to have the capacity to end some existing legacy programs to provide necessary resources for important innovations (p. 14).  The Board has a “fiduciary” responsibility for strategic planning (p. 17). 9 What is strategic thinking? Strategic thinking is purposeful but not regimented, disciplined yet expansive, and rooted in a university’s mission even as it develops a compelling and sustainable vision for an uncertain future (Shinn, p. 24). Strategic thinking is “seeing” …  Ahead and behind: A good vision of the future is rooted in an understanding of the past.  Above and below: Holistic, big-picture thinking is supported by inductive and informed “deep digging.”  Beside and beyond: “Lateral” or unconventional thinking should assist an institution in seeing beyond “constructing” a new future. Seeing it through – it is only strategic “if it gets done” (Mintzberg, from Shinn, p. 25). 10 Figure Out What Will Work Well for Western  Most models you’ll read about (including Nadler et al) are a bit formulaic.  Many university strategic plans are simply unfunded wish-lists and not terribly strategic.  In academe, process matters a lot (and many would say as much as anything else), so do not underestimate its importance.  Discuss what makes the most sense with this President, this Board, this culture, at this place in time. Keep in mind:  Today is about sense-making (generative, strategic level) – not operations and tactics, so resist the urge.  5. Board Governance a. Board Assessment b. Board Committee Structure 6. EXECUTIVE SESSION Executive Session will be held to discuss personnel issues as authorized in RCW 42.30.110(1)(g). 7. Closing Reflections 8. Adjournment 9. Pre-Meeting Reading Materials The 21st-Century Presidency: A Call to Enterprise Leadership By Terrence MacTaggart The 21st-Century Presidency: A Call to Enterprise Leadership By Terrence MacTaggart Contents Introduction...................................................................................................... 1 Enterprise Leadership Today........................................................................... 2 Features of Enterprise Leaders........................................................................ 4 A Changed Landscape..................................................................................... 8 For Presidents: Sudden Crises, Long-Term Uncertainty, and Immense Opportunity...................................................... 14 For Boards: Ambiguity, Impatience, and a Fresh Opportunity to Make a Difference...................................................... 15 Change in the Boardroom............................................................................. 16 Recommendations for Presidents and Boards............................................. 18 Conclusion...................................................................................................... 21 Acknowledgments.......................................................................................... 22 www.agb.org 1 Introduction A merican higher education must redefine the work of its presidents if it is to meet today’s challenges and those fast approaching on the horizon. The effectiveness—and, in a growing number of cases, the very survival—of a college or university requires leaders who make a clear-eyed appraisal of their institution’s competitive position in the market for higher education services, bring an entrepreneurial spirit to their work, and possess the talent to advance the enterprise in the face of often conflicting demands. In fact, what’s needed is a new model of leadership: enterprise leadership. Twentieth-century leadership approaches will no longer suffice. Skepticism over the value of a college degree, higher expectations for performance from institutions at all levels, student unrest, intense competition for students and resources, and political divisions are among the most prominent challenges. In addition, a new wave of technological change will most likely alter higher education as we know it. Artificial intelligence, virtual reality, big data, and cognitive mapping are more than buzz words. They will define the future of higher education and society just as the Internet does now. Such realities combine to require that presidents of colleges and universities possess talents and skills that are different from those required in the past. But presidents can’t operate alone. Boards also must change to meet the demands of the twenty-first century: they must rethink and redesign governance in ways that enable them to work as allies of The success of the enterprise leader rests the president in meeting whatever challenges on a foundation of trust and confidence face the institution. At all types of colleges and universities, the governing body must between the president and the institution’s participate in leading the enterprise by governing board. collaborating with the president in developing major strategies, standing firm with the executive in the face of criticism and opposition, and committing time and resources to the work of sustaining and advancing the institution. Indeed, the success of the enterprise leader rests on a foundation of trust and confidence between the president and the institution’s governing board. Trustees who wish merely to oversee the president, as well as those who behave as if they themselves were the chief executive, must develop a new mindset. As recommended in Consequential Boards: Adding Value Where It Matters Most, the report of AGB’s National Commission on College and University Board Governance, boards must “add value to institutional leadership and decision making by focusing on their essential role as institutional fiduciaries.” That will be a dramatic shift for those who underestimate the need for most institutions to alter their culture and performance. 2 The 21st-Century Presidency: A Call to Enterprise Leadership Reorganizing the board’s work requires recruiting new members with experience in the fields and delivery modes at which the college or university expects to excel. Board education and self-evaluation must focus on the realities of bringing change to notoriously change-averse institutions, as well as on the attitudes of a new generation of students energized by social media. The role and scope of committees need to be redesigned to support strategic directions rather than the standard functional areas. Most important, in selecting a chair to meet the new demands, the board must find a respected individual who can lead it in adjusting its work, as well as take the time to support, advise, and challenge the president—enabling that person to grow and flourish in the job. (And if the president is not up to the task, the chair should lead in taking the appropriate next steps to find the right leader.) In short, whether board members are labeled trustees, regents, curators, or directors, the working relationship between those ultimately responsible as fiduciaries and the chief executive is the cornerstone of effective enterprise leadership. The institution’s ability to thrive now and into the future will require a highly collaborative working relationship between the board, particularly its chair, and the chief executive acting as enterprise leader. Enterprise Leadership Today E nterprise leadership is the vigorous exercise of authority in guiding an institution through a comprehensive adaptive process that positions it to prosper in a competitive, fast-changing environment. Effective enterprise leaders of colleges and universities engage the academic community in the change process. They work actively with their governing boards as trusted partners in developing strategies to strengthen their institutions’ financial bases; academic quality and effectiveness; and reputation for value, to students and society as a whole. This definition suggests (at least) five attributes of the enterprise leader and enterprise leadership. First, the modern presidency is a 24/7 job demanding hard work over a sustained period of time. Presidents require periodic respite from this intensity for their mental and physical health—and to support a return to what is often a relentless pace. Second, change leadership is more than change management. It requires a sophisticated understanding of the Enterprise leadership is the vigorous emotional brew that accompanies serious change exercise of authority in guiding an and innovation. These skills include applying the appropriate change strategy to match the institution through a comprehensive situation; exerting pressure without alienating or adaptive process that positions it exhausting the team; possessing the emotional to prosper in a competitive, fastintelligence to cope with opposition; and displaying calm courage in the face of conflicts and even changing environment. www.agb.org 3 personal attacks. Third, enterprise leaders appreciate clearly the challenges facing their institutions. They also have the imagination to envision ways to advance their institutions in this volatile environment. Fourth, enterprise leadership mandates the strengthening of the enterprise through time. The critical measures are financial stability; academic quality and effectiveness; and the institution’s reputation for worthwhile teaching, research, and service. Finally, the sine qua non that underpins all the rest is personal integrity in all decisions and in relationships with the governing board and the academic community. Enterprise leadership encompasses a The enterprise leader must give top priority respect for the core values of the academy. Academic freedom in the pursuit of truth to strengthening the value proposition— is foremost among them. The modern the promise that a particular college president also needs to publicly champion education is worth the time and resources the liberal arts, especially with audiences that disparage them. In addition, the invested in achieving the degree. president needs to be empathetic in understanding why faculty members often resist change, as well as courageous in communicating the often uncomfortable realities facing the institution. It is always best to work strenuously to make shared governance function well. But the enterprise leader must be willing to make tough calls when the conventions of shared governance prohibit consensus on vital new directions. And the board needs to support its executive in the face of inevitable conflict and criticism. The enterprise leader recognizes that a college or university is not a business. But this executive also knows full well that unless the business side is successful, academic quality and even the existence of the institution will be at risk. It is no secret that the historic value proposition of higher education has eroded. The substantive value of a college degree may remain positive. Yet for students, families, policymakers, and the public at large, the narrative of high cost, long times to graduation, poorly educated graduates, and a dearth of postgraduate employment opportunities have combined to diminish higher education’s perceived value. The enterprise leader must give top priority to strengthening the value proposition—the promise that a particular college education is worth the time and resources invested in achieving the degree. Finally, exercising enterprise leadership demands the focused efforts of a highly functioning team. The president’s effectiveness depends on finding and developing talent in key aspects of the institutional enterprise: finance, academics, student recruitment and retention, resource development, and often government and public relations. An active program of talent development from within the institution, including faculty members with the aptitude for enterprise leadership, is often a better option than hiring a stranger from outside it. The features of enterprise leaders have always been the virtues of exceptional presidents. Today, however, all presidents need to possess such traits to a substantial degree. 4 The 21st-Century Presidency: A Call to Enterprise Leadership Features of Enterprise Leaders E nterprise leaders are realistic in appraising the challenges their institution faces, pragmatic in selecting strategies to advance it in light of its strengths and the potential in the market, and transparent in their frank communications—especially with the board of trustees and the academic community. The following summary of crucial success factors grows out of many conversations with change leaders as well as direct observation of effective executives in action. Enterprise leaders possess: 1. A clear-eyed recognition of the real challenges confronting institutions and anyone who attempts to change them. Enterprise leaders recognize the flaws in many current business models, the need to make difficult adjustments in order to respond to increased competition, and the omnipresence of social media that fans the flames of discord and the inevitable opposition to change. Unquestioning fidelity to traditional patterns of education, organization, and governance won’t work in today’s environment. 2. The ability to develop and articulate a practical and compelling vision that positions the institution for the future. That vision needs to be strategic in taking into account market realities and current or potential institutional strengths. It combines Unquestioning fidelity to traditional a data-driven appraisal of today’s realities patterns of education, organization, with the ability to scan the horizon, especially with respect to competition and technological and governance won’t work in change. And while quantitatively grounding it is today’s environment. crucial, personalizing the vision with narratives that build support for the change journey and celebrate its accomplishments is equally important. 3. The emotional intelligence to advance the enterprise in close collaboration with the governing body. The engaged board is now a fact of presidential life. Presidents must work in concert with trustees, including those with egos to match their accomplishments, and secure their support. Successful enterprise leaders view their board members, or at least the leaders among them, as sources of advice and allies in change leadership. 4. The capacity to transform a legacy-oriented academic culture to one focused on today’s realities and the potential of the future. Change leadership is an art requiring experience, persistence, and courage. The president and the board www.agb.org 5. 5 must appreciate that change includes risk and that not all innovations will work as planned or bring immediate benefits. Unfortunately, the length of service for presidents is declining. And waiting out a change leader is a common response to vigorous leadership, especially if the executive doesn’t stay in office long enough to institutionalize a new way of doing business. Yet a minimum of seven years is usually required to convince enough members of the academic The president and the board must community that a new order is here appreciate that change includes risk and to stay, and most enduring change requires a decade or more of sustained that not all innovations will work as leadership. The board needs to provide planned or bring immediate benefits. the appropriate inducements to encourage an able president to stay as long as the change program requires. Respect for academic values and shared governance, plus the strength to make unpopular decisions when shared governance fails to yield consensus. Historically, working with faculty members often meant accommodating their preferences to preserve peace in the valley or forestall a no-confidence vote. And presidents must always support the faculty when it comes to upholding the institution’s core academic values. But now is a time when administrative leaders must often offer their faculty colleagues uncomfortable choices rather than easy answers. In response to reducing programs and staff or changing time-honored practices such as teaching loads, the president will face strident opposition from faculty PERSPECTIVES “When hot issues go viral in days, it doesn’t leave much time for the president or the board to reflect on the appropriate response. It pays to anticipate these things.” UNIVERSITY PRESIDENT “I have staff members combing the websites to try to stay ahead of rising concerns. And because of the reputational risk involved, we keep our audit committee of the board apprised monthly.” UNIVERSITY PRESIDENT “I was uncomfortable at first using Twitter and Facebook. But now I see it helps me to communicate with students quicker and more effectively than with speeches and newsletters.” UNIVERSITY PRESIDENT “The younger members of our board have helped the veterans see the upsides of social media for marketing the institution and in the work of the board, too.” COLLEGE PRESIDENT 6 The 21st-Century Presidency: A Call to Enterprise Leadership members, especially those in the humanities and social sciences. Moreover, today’s competitive environment frequently demands quick response times, not the leisurely schedules of traditional shared governance. In such cases, the practice of shared governance needs to be recalibrated to clearly define the boundaries of authority. Courage, a thick skin, and equanimity are important traits in this often-contested environment. 6. The skills to build a high-functioning administrative team in the key operational areas of the enterprise. Fortunate is the new president who inherits a uniformly capable team. More likely, however, some members will remain and others leave, since culture change often requires a change of senior leadership, as well. The enterprise leader must be able to identify, recruit, and nurture a group of strong administrators. Team members must be especially skilled in areas where the executive is not and bring different strengths to the administrative team. Qualities required of all team members are an understanding of the dynamics of change in the academy, a commitment to the new agenda, and loyalty to its leader. They must also have the backbone to share bad news early and critique ideas that will not serve the institution well. Boards should support the president in providing the compensation and other benefits necessary to retain a high-functioning team. 7. Personal qualities such as integrity, high energy, resilience, a positive demeanor, and the ability to sustain one’s personal mental health in a fraught milieu. Most candidates for president possess the intellectual ability to do the job. What is sometimes missing, and predictably results in failure, are the personal qualities that No amount of creativity or enable those leaders to sustain themselves communications skills will make as human beings in the face of a challenging 24/7 workload. A well-tuned moral and ethical up for moral or ethical failures— especially in this era when such lapses compass, for example, is the foundation for successful leadership. No amount of creativity are apt to be well publicized. or communications skills will make up for moral or ethical failures—especially in this era when such lapses are apt to be well publicized. At regular intervals, presidents need to take time to refresh and renew their commitment to the work and to reframe their strategies. The board should regard coaching and periodic respites as essential supports for effective leadership, not as perquisites or icing on the cake. www.agb.org In sum, the enterprise model combines several virtues, including tough-minded realism, sophisticated interpersonal skills, and courage. That said, effective enterprise leaders come from a variety of backgrounds and have a range of personalities. Academics such as provosts and deans— some with enviable publication records and some without—can become successful leaders of change in the organizations that nurtured them. So-called nontraditional candidates—business leaders, politicians, members of the military—have effectively applied their training and experience to their new roles, while adjusting to the special character of academic culture, and become exceptional presidents, as well. 7 Most Important Presidential Attributes* 33 Innovation 33 Vision 33 Future Orientation 33 Change Leadership 33 Resource Development *In 2015 and 2016, AGB surveyed board chairs of member institutions. Of the 56 who responded, 85 percent (48) were from independent institutions, 9 percent (5) from public institutions, and the remainder from private, for-profit institutions. The purpose of the survey was to “better understand the role of the board, and especially the chair, in enabling presidents (or chancellors or commissioners) to succeed in leading change in institutions often very averse to change.” Key findings are summarized in tables throughout the report. PERSPECTIVES “Who are ‘the faculty’ anyway? The tenured professors? Those in line for tenure? The adjuncts? The graduate assistants? The union?” TRUSTEE “Sometimes the no-confidence vote is deserved…. We need to be prepared to act appropriately if the president is just not up to the challenge.” TRUSTEE “No-confidence votes erupt whenever we get mired down during negotiations with the faculty union.” UNIVERSITY PRESIDENT “Truly exceptional presidents and boards take pains to enable their faculty to acknowledge the realities of the changing market for higher education and to accept the need for painful change…. This ability should be part of the repertoire of the president.” BOARD CHAIR “Pragmatism in the face of faculty ‘righteous indignation’ is the right response, if we want to save our college.” COLLEGE PRESIDENT 8 The 21st-Century Presidency: A Call to Enterprise Leadership A Changed Landscape T he current environment for presidents is more dynamic, challenging, and threatening—yet full of potential—than at any time over the past fifty years or more. Perennial challenges—scarcity of resources, partisan conflict, student activism—have intensified. New challenges—the influence of social media, the advent of more disruptive technologies—contribute to the drama. While most presidents certainly recognize those forces, effective ways to address them can be elusive. Increasingly, trustees, especially executives from business and healthcare, recognize that today’s dynamic conditions demand fresh approaches to leadership and governance. Alums on the board, however, are often less willing to accept the need for change. Such differences on the board can reflect just a few of the contrasting perspectives among constituents that institutional leaders must take into account when dealing with the following trends. AN ERODING VALUE PROPOSITION It has long been an article of faith that a college degree amounts to a ticket to prosperity and the good life in the richest country on earth. Indeed, the value of higher education received recognition from the US Congress in the Morrill Act of 1862 and became a reality for hundreds of thousands of Americans beginning with the GI Bill following World War II. Even as the manufacturing sector began its rapid decline in the 1970s and 1980s, the sons and daughters of steelworkers, auto assemblers, and employees in basic industries could still believe that a college degree would lead to jobs and incomes that were no longer available to their parents. But for millennials and generation Z, and their parents, that faith has been shaken by rising college costs, high student debt, and limited job prospects. Elite colleges and universities continue to attract the most able and affluent students, but The enterprise president must play an active many mid-range private and regional role in restructuring the array of programs and public institutions are scrambling services the institution offers and in rebranding to fill their classes. The enterprise president must play an active role in it to attract students in the face of growing restructuring the array of programs questions about the value of the degree. and services the institution offers and in rebranding it to attract students in the face of growing questions about the value of the degree. For the sector as a whole, “the silos are blurring,” in the words of one experienced president. Less than two decades ago, for-profit schools served about 1 percent of the student population. Now, proprietary colleges enroll about 12 percent of college students. If their performance and reputations improve, the proprietary market share is likely to grow. The perceived value of a traditional baccalaureate degree also faces stiff competition from other alternatives, including industry-sponsored certificates; more sophisticated military education; micro-credentials; and community colleges offering less expensive, career- www.agb.org 9 focused baccalaureate degrees. Advanced education remains a necessity, but residential four-or-more-year degrees costing many thousands of dollars are not guaranteed to survive. FLAWED AND FAILING BUSINESS MODELS Most Serious Challenges Facing Presidents At many colleges and universities, a gap is growing between net income and the 33 Enrollment/Recruitment resources needed to sustain the inherited 33 Declining Revenues academic structure and processes. Absent 33 Change Leadership strong leadership and significant change in the way they do business, such institutions 33 Relationships with the Board will become hollowed-out shells of their former selves or be forced to merge or close their doors. Declining state support for public colleges and universities; falloffs in high school graduation rates in major areas of the country; diminished job opportunities for a range of graduates, from English majors to lawyers; increasing student debt; and the rising costs of attendance all combine to threaten the historic business models of many institutions. Presidents and boards who believe that their legacy brand is so strong that they are immune from the current, all-too-real threats are in for a rude awakening. The legacy business model only works for the most elite, well-financed institutions, estimated to be less than 5 percent of all colleges and universities. Better positioned are “portfolio” business models that combine traditional programs that still hold some appeal with innovations, including online and career-focused academic programs. And some PERSPECTIVES “The belief that our state needs a public liberal arts college exists primarily at the college itself.” COLLEGE PRESIDENT “My son has a good degree from a first-rate school, but he still lives in the spare bedroom.” PARENT OF A RECENT GRADUATE “Parents especially see the degree as a commodity. They weigh the value-price equation at each school and force them to compete to offer the best deal.” HIGHER EDUCATION MARKETING CONSULTANT “Regional publics and less-distinctive, rural private colleges face an uncertain future.” HIGHER EDUCATION DEBT-RATING SERVICE “The liberal arts are still attractive, but it is getting more important to link them to internships, job placements, and other stepping stones to good careers.” COLLEGE PROVOST 10 The 21st-Century Presidency: A Call to Enterprise Leadership entrepreneurial nonprofit institutions have adopted the proprietary model of online education and adjunct professors to offer mass education that is more convenient for students and costs less in money and time. To meet the challenges and convert them into opportunities, the modern president needs to be an innovator, entrepreneur, and deal maker who can envision fresh ways of reaching key markets while maintaining the academic qualities that make the institution worth sustaining. Doom-and-gloom visions of higher education as a declining industry will become self-fulfilling for those who refuse to seek out opportunities in this dynamic environment. A RESURGENCE OF STUDENT ACTIVISM Few institutions are exempt from the public demonstrations, occupations, sit-ins and sit-outs of millennial and post-millennial generations of students adept at exploiting social media to galvanize action to support their concerns. Veteran presidents who themselves witnessed and often participated in the campus demonstrations of the 1960s expect the current unrest to match or exceed that turbulent era. Typically, student causes are just: they include systemic racism, rape and sexual harassment, income inequality, hostility to the LBGTQIA community, the exploitation of athletes, and a host of others. Given the perhaps intractable social problems that fuel student fervor, presidents should expect eruptions to continue, grow stronger, and possibly spread beyond traditional four-year institutions to community colleges and career-focused With most public university boards ones. Board discussions of the underlying appointed by governors and confirmed causes motivating student action and how to by Republican legislators, presidents transform them into opportunities for civil discourse are best conducted well in advance can find themselves caught in the of any sudden campus demonstration. Crisis middle between liberal academics and planning for such potential disruptions conservative policymakers. should also be a major priority for boards, as well as for presidents and their cabinets. One president told his board that “it is too late to start planning for emergencies once students take over my office or invade the boardroom.” STATE AND NATIONAL PARTISAN DIVIDES The perverse deadlock in the US Congress, the vituperative 2016 national election, and the bifurcation of national news media along partisan or near-partisan lines illustrate profound schisms in American society. The fact that many higher education institutions are accurately regarded as leaning toward the Democratic Party and committed to a progressive social agenda, while the majority of states have conservative Republican governors and GOP control of at least one house in the legislature, makes for uneasy relationships. With most public university boards appointed by governors and confirmed by Republican legislators, presidents can find themselves caught in the middle between liberal academics and conservative policymakers. In such circumstances, presidents must www.agb.org 11 be politically adroit and, especially at public Proposals to provide free tuition amount colleges and universities, adept at making the to an existential threat to many small, case for continued support to taxpayers and independent, liberal arts colleges. other audiences. The national political divide also splits many campuses; various board members, administrators, professors, and students can hold strongly differing views on issues as vital as whether or not state legislatures should enact legislation that allows guns on campuses. Presidents and board members at independent colleges and universities also report that federal and state regulations, long a fact of life for institutional leaders in the public sector, now represent a major concern for them, too. More rigid accreditation standards, the prospect of Title IX investigations, and questions concerning university foundations and their resources are all relatively new challenges for independent institutions. Proposals to provide free community college tuition—and New York State’s recent announcement that even four-year public colleges and universities would be tuition free for some families— amount to an existential threat to many small, independent, liberal arts colleges. FRAYING CAMPUS SHARED GOVERNANCE A community of scholars is a fiction at the vast majority of institutions. By one estimate, only about a third of faculty positions are on a track leading to tenure, and graduate assistants or adjunct instructors now teach most college students. In short, the faculty is divided. A relatively small number of fortunate professors enjoy lifelong tenured appointments, but they hire fewer and fewer young colleagues to join their ranks. PERSPECTIVES “Suddenly, I’ve become ‘the Man’ in the eyes of kids who weren’t born when I marched with Martin Luther King Jr.” COLLEGE PRESIDENT “It’s too late to plan for emergencies when students take over the president’s office.” UNIVERSITY PRESIDENT “I don’t feel safe on campus without a gun.” STUDENT “The reality that academics vote for Democrats will continue to alienate redstate legislators.” UNIVERSITY LOBBYIST “If you want to influence politicians, you’ve got to help fund their campaigns.” UNIVERSITY PRESIDENT AND FORMER POLITICAL ADVISER “A Title IX investigation will seriously damage our ability to attract students.” COLLEGE PRESIDENT 12 The 21st-Century Presidency: A Call to Enterprise Leadership Meanwhile, many others are nomads with doctorates who must seek a livable wage by teaching multiple courses at different academic venues. Pay differentials between professors in the high-demand disciplines and those in the humanities are another source of rancor. In the face of such growing inequalities, the unionization of graduate assistants and adjuncts is a trend that will most likely continue. Opposition to change often becomes Higher education executives and their personal. No-confidence votes in the president boards should make good-faith efforts and sometimes even the board seem to be on the rise. The fragmentation makes it especially to share governance but be prepared difficult to secure broad-based support for to make the tough calls when shared the changes that presidents are asked to lead. The conventions of shared decision making in governance doesn’t work. academe have always been slow, decentralized, and prone to multiple choke points where change can be stymied. Today, the staid traditions of shared governance often run directly counter to the nimble and rapid responses required in the current competitive environment. In this environment, higher education executives and their boards should make goodfaith efforts to share governance but be prepared to make the tough calls when shared governance doesn’t work. And when a faculty senate threatens or expresses its displeasure with a vote of no confidence, a board that supports the agenda and style of its president needs to step forward and demonstrate that support. THE UBIQUITY AND POWER OF SOCIAL MEDIA The rise in the numbers of users of social media and its power to influence opinion is nothing short of astonishing. The top fifteen websites—Facebook, Twitter, LinkedIn, Tumblr, and the like—host more than a hundred million users. One survey reports that 84 percent of Americans under the age of nineteen have a Facebook account. The young dominate in social media use. According to one survey, 86 percent of people aged eighteen to twenty-nine years use Facebook, while only 35 percent of those over age sixty-five do. Another survey suggests that social networking sites absorb about a fifth of users’ time, thanks largely to the proliferation of smartphones. In the United States, about three-quarters of those surveyed reported they got their news from online sources as opposed to traditional news outlets like newspapers. Three features of social media are especially relevant for the work lives of presidents: its ubiquity among college-age people equipped with smartphones, the capacity of messages including videos to go viral with astounding rapidity, and the lack of truth testing of the validity of those messages. One major university president tells of how a false story of a fraternity rape went viral in days, leading to both student and trustee demands for quick action. An investigation confirmed the falsity of the story, but only six months after it broke. It behooves presidents and trustees alike, especially those more at home with conventional news sources, to become versed in the growth and potential of social media for disruption as well as for educational uses. Wise are the presidents who use social media to present themselves to their many publics. Systematic monitoring of social media www.agb.org 13 sites will to an extent enable presidents to note the early warning signs that an issue may go viral. As disruptive as the advent of print in the fifteenth century and the spread of electronic communication in the 1960s, social media will profoundly change the working lives of presidents for the foreseeable future. THE NEXT TECHNOLOGICAL REVOLUTION Access to the Internet has exploded through the advent of laptops, tablets, smartphones, and other mobile devices as ubiquitous as a wristwatch. These innovations have spurred change—sometimes positive, sometimes violent—with unpredictable outcomes that range from disruptions at American universities to national uprisings like the Arab Spring. In all likelihood, higher education is in for The inflection point for colleges and further shocks, as artificial intelligence, virtual universities from this next wave of reality devices, cognitive mapping, and the analysis technological innovation has not of big data separately and in combination work to transform how students learn and how and by been reached yet, but surely it is whom education is provided. The tools of virtual approaching fast. reality, for example, are already beginning to transform medical education, engineering, and art—disciplines once thought to be available only in situ. The inflection point for colleges and universities from this next wave of technological innovation has not been reached yet, but surely it is approaching fast. Presidents and boards who dismissed online delivery now see their students and potential enrollees migrating to competing providers offering more convenient learning options. Those who remain blind to the next wave will suffer similar consequences. For instance, institutions that employ big data to improve marketing and diagnose student learning needs will enjoy a competitive and educational advantage over those that continue to pursue business as usual. PERSPECTIVES “Most presidents don’t know what they don’t know when it comes to the next wave of technological innovation.” UNIVERSITY PRESIDENT “Today, our competition may be the community college five miles down the road. Tomorrow it may be the outfit in India that offers an engineering degree through a virtual laboratory.” FORMER UNIVERSITY EXECUTIVE “Not just our success as a university, but our state’s ability to compete for high-tech employers, will depend or our capacity to stay at the cutting edge of technological innovation.” UNIVERSITY PRESIDENT 14 The 21st-Century Presidency: A Call to Enterprise Leadership For Presidents: Sudden Crises, Long-Term Uncertainty, and Immense Opportunity T hese forces of change can coalesce to make a Wedge Issues Separating president’s life one full of Boards and Presidents periodic yet continuing 33 Slow Pace of Change calamities erupting on a landscape of long-term uncertainty. 33 Program Reductions For example, partisan divides along the 33 Lack of Clarity on Board/ issues of the day, coupled with calls to President Responsibilities arms issued through social media, can 33 Financial Strategy turn out group protests literally overnight. Proprietary institutions using modern communications technology and liberated from the overhead expenses of a traditional campus offer stiff competition to colleges and universities with conventional business models. The number of pressures and demands facing presidents, combined with the fact that they reinforce one another, makes for a marvelously challenging environment. An unanticipated student demonstration at the gates of the campus, a call from a board member infuriated by a faculty comment in the newspaper, a donor threatening to withdraw a gift over the firing of a coach, and rumors of no-confidence votes on the agenda of the faculty senate can all occur in the space of just a week. It is also not uncommon for a president to be simultaneously wrestling with longer-term perils, such as drooping student demographics, too-long-deferred maintenance that demands the investment of millions of dollars, the possibility of a downgrade in the institution’s bond rating, and competition from a nearby community college offering baccalaureate degrees. In addition, athletics programs—for all their value to student athletes and importance in building commitment among alums and fans—are often a huge and costly distraction from the academic enterprise. Despite the adversity (and, in some cases, because of it), most presidents, not only at faith-based institutions but also throughout higher education, see their work and travails as part and parcel of a higher calling. To be sure, ambition plays a part in the allure of the job, as does the respect and prestige that still adheres to the presidential office. In addition, the material rewards Most presidents see their work can be significant, as can the “executive gene” that and travails as part and parcel drives many women and men to positions of power and of a higher calling. influence. But whatever the extrinsic rewards, the call of the office persists. It may be to preserve an institution one treasures, to seek the next level of excellence on the academic side, to enable more first-generation students to experience higher education and achieve their life goals, or simply to “make a difference for the better” in the course of one’s life. www.agb.org 15 For Boards: Ambiguity, Impatience, and a Fresh Opportunity to Make a Difference É lan among presidents and commitment from smart, future-oriented board members will be vital to converting disruptions into opportunities as the pace of change accelerates. For example, some experts estimate that half of the current jobs in America will be replaced by automation in the next twenty years. Imagining the potential impact of this change, and its threats and opportunities for higher education, would make for an important boardpresident discussion. The conventional model of one professor per classroom has already yielded to online and hybrid courses and curricula standardized for thousands of students. The techniques of process engineering may allow further expansion of services to students without commensurate increases in the teaching ranks. Exploring the positives in this disruptive scenario would be well worth serious discussion among administrators, faculty members, and trustees. Given the rate of technological change, these and more potential threats to conventional thinking—and, more important, the opportunities for capturing their advantages—are not far off. Iterative discussions around such topics should be high on the president-board agenda. Yet many board members report that their board is a house divided. Some trustees, especially veterans of the competitive corporate world, are impatient for change and frustrated by its slow pace in the academy. For others, nostalgia for what they recall as a better time leads them to oppose change. And, in some cases, the political divide in the statehouse, let alone the nation, penetrates the boardroom in a manner not witnessed since the culture wars of the 1990s. Presidents themselves hold different views on the usefulness of their boards, with some embracing board members as trusted partners in advancing the institution and others seeing them as, at best, just another constituency to be managed. A fresh commitment to PERSPECTIVES “They know the new president must fix a broken business model, but they condone job descriptions as if nothing has changed since the 1980s.” EXPERT ON BOARD GOVERNANCE “My board both supports and challenges me. The university is better for it.” UNIVERSITY PRESIDENT “Clear expectations and agreement on performance metrics should be spelled out in the first appointment letter of a new president.” COLLEGE PRESIDENT “For those of us in the public sector, discussions of disruptive change in the sunshine can be difficult…but we need to have them if we are doing our jobs.” BOARD CHAIR 16 The 21st-Century Presidency: A Call to Enterprise Leadership integral leadership that combines elements of trust, support, collaboration, and challenge is the sine qua non for successful board-presidential relations. In public university and college systems, the widespread trend toward centrally administered functions, usually termed “shared services,” adds a new dimension to collaboration between statewide boards and campus presidents. Achieving the economies of scale that systems can deliver often requires increased system dominance in finance, legal affairs, human resources, government relations, information processing, purchasing, contracting, and other administrative functions. The transfer of authority for those functions is unsettling to many campus presidents who correctly view the change as reducing their authority. The emerging model for president-system relationships is one where presidents serve as system officers with responsibility for statewide priorities and, simultaneously, as shrewd enterprise leaders for their own college or university. In such instances, statewide boards must recognize that vigorous campus leadership requires as much freedom to maneuver as possible within the statewide framework. Change in the Boardroom F ollowing through on a serious change agenda can inevitably create stress among board members, as well as between trustees and their president. Ignored, such tensions will eventually derail the presidency and defer the changes essential to sustaining the enterprise. Three bad habits too often occur among trustees when confronted with the need for unsettling change. Alums on the board may resist change that jeopardizes their memories of an idealized undergraduate experience. Business executives on the board may believe that corporate strategies can be applied without modification to the business of higher education. Conflict-avoiders on the board, whatever their professional background, may oscillate back and forth when confronted with pushback to the change agenda. Board Behaviors That Support Presidential Leadership 33 Regular Communications 33 Full Transparency 33 Partnering with the President on a Change Agenda 33 Clarity of Expectations 33 Demonstrating in Public Support for the President Board Behaviors That Hamper Presidential Leadership 33 Micromanagement 33 Undercutting the President with the Faculty 33 Impatience with the Pace of Change www.agb.org 17 For example, several board members have marveled at the stark contrast between the rosy picture presented in the advertisement for a new president and the desperate plight of the institution. One of these board members went on to say, “The board acts as if nothing has changed since the 1980s.” He attributed this denial to the many alums on the board, one of whom said, “We need a president who will recruit students just like us.” A strong, respected board chair is the essential remedy for such bad habits. The chair should be a staunch champion of the president when opponents choose personal attack as a strategy for combating change. It is also the chair’s job to remind board members to Developing mutual expectations for keep their eyes on the prize of changing the change, including expected results and a institution in order to sustain it and to rein timetable for obtaining them, will enable in those who favor overly simple solutions. Developing mutual expectations for change, presidents to assert strong leadership in including expected results and a timetable the knowledge that the board “has the for obtaining them, will enable presidents president’s back.” to assert strong leadership in the knowledge that the board “has the president’s back.” Commitment to a timetable for change also helps lessen the odds that individual board members will allow their impatience to cloud their judgment regarding its pace. PERSPECTIVES “[The new president] came in planning to shore up a liberal arts college. Instead she had to fire most of the senior staff, deal with a Title IX scandal, perform damage control following an off-campus student riot, and cut the budget by $5 million.” TRUSTEE “Would-be presidents should take a hard look at the realities of the job before throwing their resume in the ring.” FORMER UNIVERSITY SYSTEM HEAD “My parents never finished high school. They were part of the Greatest Generation who saw us through World War II and built this country. This presidency is my opportunity to play my part in helping others realize the American Dream.” UNIVERSITY PRESIDENT “Forward-looking institutions should consider focusing on their core strengths in education and research, then outsource everything else.” TRUSTEE “The era of the solo leader is over. Now, successful change leaders must orchestrate the contributions of networks and partnerships as well as the senior executive team.” ORGANIZATIONAL EXPERT AND TRUSTEE 18 The 21st-Century Presidency: A Call to Enterprise Leadership Recommendations for Presidents and Boards A n axiom of governance holds that a strong board Responsibilities of Chair coupled with a weak to President president can do little but 33 Frequent Communications elect its own officers, while a strong president tied to a weak board can 33 Giving Advice accomplish some good things but never 33 Clarifying Mutual reach full potential. Unfortunately, this Expectations imbalance is also a recipe for instability 33 Serving as a when dramatic change is required or a Sounding Board crisis erupts. A lack of board engagement and weak support for the president typically results in his or her premature departure and the lost opportunity for institutional progress and success. However, a strong president and a strong board working together can seize opportunity in the face of adversity. Most colleges and universities today grapple with the kind of issues that demand individual board members and their presidents not only to perform at the highest level, but also to work more closely together than ever to sustain and advance their institutions. To underscore the importance of shared leadership, the following recommendations are directed to both presidents and governing bodies. 1. Reexamine and, if necessary, change both the president’s and the board’s fundamental assumptions about their working relationship. Presidents who regard the board as just another constituency to be managed, placated, or endured need to reimagine their trustees as potential allies in moving the enterprise forward. This transformation requires patience and persistence on the part of the executive and an active board chair who appreciates the importance of integral leadership. The new relationship should be articulated in a document that defines the commitments and practice of such leadership, including the locus of authority for both parties. 2. Acquire a shared understanding of the dynamic business of higher education today and its prospects for the future. Starting with the erosion of higher education’s value proposition with many important publics, this learning process should include gaining A strong president and a strong board a familiarity with (1) the demographics of working together can seize opportunity the student market, (2) the evolving attitudes of recent high school graduates and older in the face of adversity. students alike, (3) the impact of social media for marketing, communications, and managing risk, and (4) the implications of the next wave of technological change. The president can play an educator’s role in this learning process, although www.agb.org 3. 4. 19 in all likelihood she or he will benefit from it, as well. Board members who have experienced the effects of disruptive change in their professions will be able to offer lessons. Focus on the true competitive position of the institution. A brutally honest, data-based assessment of (1) where the institution stands in relationship to its historic markets and the competition; (2) trends in net income, discount rates, and costs; and (3) prospects for the future should be the In most cases, the transition from boards point of departure for this work. The process of accumulating, interpreting, as overseers to partners in enterprise and discussing the data may well help leadership won’t happen without individual board members overcome restructuring the way they work. doubt with regard to change. The president and the chair are probably best suited to guide this discovery process, but they must do so with the right touch— one that enables board members, especially alums who hold a legacy vision of their undergraduate experience, to accept current realities. Restructure the board’s processes to enable it to concentrate on top strategic priorities. In most cases, the transition from boards as overseers to partners in enterprise leadership won’t happen without restructuring the way they work. Some boards are simply too large and lack the right mix of talent and experience to serve as effective partners with the president in leading change. Smaller boards with the time and interest in collaborating with an energetic president should be the norm. Also, a sharp focus on strategy and strategic directions needs to guide the shift from committees based on historic functional areas to those centered on the institution’s top goals, such as educational effectiveness and strategic innovation. In addition, the board chair and the president need to make a yearlong board agenda a priority and not delegate it to PERSPECTIVES “America has without design settled on an arrangement that includes all colleges and universities in its ethos of capitalist competition.” GEORGE KELLER, TRANSFORMING A COLLEGE “The strategies of 2007 won’t work in a post-recession world.” TRUSTEE “Developing a sustainable business model goes far beyond finding new sources of revenue. It requires a total rethinking of the relationships between the campus and the market.” COLLEGE PRESIDENT AND FORMER CORPORATE EXECUTIVE “Our faculty must understand our business model, and our CFO must understand the academic model.” COLLEGE PRESIDENT 20 The 21st-Century Presidency: A Call to Enterprise Leadership vice presidents, as is often the case. And when it comes to identifying and recruiting new members, the criteria should be oriented to the future needs and services the institution intends to offer. At public institutions where a governor nominates new members, the president and the chair should encourage that governor or his or her staff to appoint trustees with experience relevant to the institution’s strategy. 5. Schedule upstream discussions of major opportunities, challenges, and strategies well before the time for action arrives. Orchestrating leadership as “conversation” is primarily the chair’s responsibility. However, the president and the chair should collaborate in identifying the topics that require in-depth board dialogue on current or prospective activities or trends. The president needs to enable staff members to shift from a reporting style that, in effect, stifles conversation and questions to one that invites dialogue around implications and options. At public institutions, where openmeeting laws prevail and private, generative discussion is prohibited, the chair and the president alike must enable the board to engage in serious conversations in the open sessions. 6. Infuse the search process with candor. Boards need to play the decisive role in structuring the presidential search process, identifying a small group of finalists, and selecting the president. It is important to engage a wide range of institutional constituents early in the search process. On-campus discussion early in the search schedule and an advisory committee that includes the key constituents will be The high degree of shared leadership enlightening to the board and help ensure suggested in this paper requires mutual eventual support for the person who is trust and collaboration between the ultimately selected. A search firm can be useful in identifying potential candidates, president and the board, coupled with provided it takes the time and deploys respect for the boundaries that divide the talent to really understand the kind of their respective responsibilities. leader whom the board is seeking. Final candidates and boards alike need to insist on full disclosure of the institution’s competitive and financial position, the board’s expectations for leadership, and the nature of the working relationship with the board. 7. Practice the “discipline of governance” by combining persistent board involvement with restraint in not crossing the lines between strategy, policy, and management. The high degree of shared leadership suggested in this paper requires mutual trust and collaboration between the president and the board, coupled with respect for the boundaries that divide their respective responsibilities. The chair and the president should clarify those limits and check often to ensure they are honored. They should determine when items for discussion are occasions for advice from the board or times when a board decision and vote is necessary, and when they are simply an administration or board matter. Management of the board itself often falls into that latter category: correcting errant trustees and disciplining the occasional rogue is one instance where the chair must act without apparent coordination with the president. www.agb.org 21 Conclusion COLLEGE AND UNIVERSITY PRESIDENTS: AMERICA’S INDISPENSABLE LEADERS T he work of the contemporary American college or university president is much more challenging than at any time in the modern era. The impact and ramifications of the powerful forces roiling higher education and the broader society combine to make the work more difficult, stressful, and important. The life of the contemporary president is punctuated by sharp crises and underlying uncertainty surrounding the future of the institution he or she leads. These same challenges confront the boards of trustees charged as fiduciaries with overseeing the colleges and universities that they govern, and they exacerbate tensions in the boardroom among the trustees themselves and between them and their chief executive. This paper focuses on the responsibilities of the contemporary presidency with an emphasis on leadership of the institution in the midst of these disruptive forces. It makes the case for a fresh style of leadership—enterprise leadership—that the times require. It also offers recommendations aimed at strengthening the relationship between the president and the board as they work together to sustain and advance their institutional enterprise. Indeed, the future calls for an entire new generation of enterprise leaders. On average, current presidents are approaching their mid-sixties. There will be a major turnover in the next few years. One experienced former president advised that boards should begin presidential searches by asking, who would want this job? The era of presidents who could expect to preside over an adequately funded and fundamentally stable enterprise is gone. Now, active enterprise leaders are the order of the day. The fate and certainly the effectiveness of many a college or university hinge on the courage and creativity of its president. If the role of the contemporary president has become more challenging, it is also more important not only to the institution, but also to our society at large. A strong higher education system is essential to maintaining the economic vitality of the country. Higher education collectively provides upward pathways for the growing population of adult learners without degrees, immigrants, and others; addresses income inequality and the social instability it engenders; and advances social justice writ large—to name just some of its most vital purposes. To be sure, many people contribute to this important work— boards of trustees, donors, and faculty and staff members, among others. But at the heart of this enterprise are the indispensable men and women who serve as America’s college and university presidents. 22 The 21st-Century Presidency: A Call to Enterprise Leadership Acknowledgments The Association of Governing Boards of Universities and Colleges (AGB) gratefully acknowledges the work of the distinguished advisory group of sitting and former college, university, and system presidents whose insights into the evolving role of the presidency and how boards can best support presidential innovation and leadership are reflected in The 21st-Century Presidency: A Call to Enterprise Leadership. ADVISORY GROUP Eric J. Barron, President, Pennsylvania State University Joseph G. Burke, President Emeritus, Keuka College Nancy J. Cable, President, Arthur Vining Davis Foundations Mary Schmidt Campbell, President, Spelman College Clay Christian, Commissioner, Montana University System Pierce B. Dunn, Former Board Member, Goucher College R. Barbara Gitenstein, President, The College of New Jersey Brian O. Hemphill, President, Radford University Henry M. (Hank) Huckaby, Chancellor, University System of Georgia Leo M. Lambert, President, Elon University Todd J. Leach, Chancellor, University System of New Hampshire Paul J. LeBlanc, President, Southern New Hampshire University Terrence MacTaggart (Chair), Former Chancellor, Minnesota State University System and University of Maine System Brian McCall, Chancellor, Texas State University System Rod McDavis, President Emeritus, Ohio University Timothy D. Sands, President, Virginia Polytechnic Institute and State University Barbara R. Snyder, President, Case Western Reserve University Janet L. Steinmayer, President, Mitchell College Eileen Wilson-Oyelaran, Former President, Kalamazoo College AGB STAFF Richard D. Legon, President Susan Whealler Johnston, Executive Vice President and Chief Operating Officer David Bass, Former Director of Foundation Programs and Research 24 The 21st-Century Presidency: A Call to Enterprise Leadership 1133 20th Street NW, Suite 300 • Washington, DC 20036 www.agb.org 10. Resource Material