Governance Reconsidered Susan Resneck Pierce Governance Reconsidered How Boards, Presidents, Administrators, and Faculty Can Help Their Colleges Thrive TheJossey-BassHigherandAdultEducationSeries CoverdesignbyMichaelCook Copyright©2014byJohnWiley&Sons,Inc.Allrightsreserved. PublishedbyJossey-Bass AWileyBrand OneMontgomeryStreet,Suite1200,SanFrancisco,CA 94104-4594—www.josseybass.com Nopartofthispublicationmaybereproduced,storedinaretrievalsystem,ortransmitted inanyformorbyanymeans,electronic,mechanical,photocopying,recording,scanning, orotherwise,exceptaspermittedunderSection107or108ofthe1976UnitedStates CopyrightAct,withouteitherthepriorwrittenpermissionofthepublisher,or authorizationthroughpaymentoftheappropriateper-copyfeetotheCopyrightClearance Center,Inc.,222RosewoodDrive,Danvers,MA01923,978-750-8400,fax978-646-8600, orontheWebatwww.copyright.com.Requeststothepublisherforpermissionshouldbe addressedtothePermissionsDepartment,JohnWiley&Sons,Inc.,111RiverStreet, Hoboken,NJ07030,201-748-6011,fax201-748-6008,oronlineat www.wiley.com/go/permissions. LimitofLiability/DisclaimerofWarranty:Whilethepublisherandauthorhaveusedtheir besteffortsinpreparingthisbook,theymakenorepresentationsorwarrantieswithrespect totheaccuracyorcompletenessofthecontentsofthisbookandspecificallydisclaimany impliedwarrantiesofmerchantabilityorfitnessforaparticularpurpose.Nowarrantymay becreatedorextendedbysalesrepresentativesorwrittensalesmaterials.Theadviceand strategiescontainedhereinmaynotbesuitableforyoursituation.Youshouldconsultwith aprofessionalwhereappropriate.Neitherthepublishernorauthorshallbeliableforany lossofprofitoranyothercommercialdamages,includingbutnotlimitedtospecial, incidental,consequential,orotherdamages.ReadersshouldbeawarethatInternetWeb sitesofferedascitationsand/orsourcesforfurtherinformationmayhavechangedor disappearedbetweenthetimethiswaswrittenandwhenitisread. Jossey-Bassbooksandproductsareavailablethroughmostbookstores.Tocontact Jossey-BassdirectlycallourCustomerCareDepartmentwithintheU.S.at800-956-7739, outsidetheU.S.at317-572-3986,orfax317-572-4002. Wileypublishesinavarietyofprintandelectronicformatsandbyprint-on-demand.Some materialincludedwithstandardprintversionsofthisbookmaynotbeincludedine-books orinprint-on-demand.IfthisbookreferstomediasuchasaCDorDVDthatisnot includedintheversionyoupurchased,youmaydownloadthismaterialat http://booksupport.wiley.com.FormoreinformationaboutWileyproducts,visit www.wiley.com. LibraryofCongressCataloging-in-PublicationData LibraryofCongressCataloging-in-PublicationDatahasbeenappliedforandisonfilewith theLibraryofCongress. ISBN978-1-1187-3849-8(cloth) ISBN978-1-118-73862-7(ebk.) ISBN978-1-118-73857-3(ebk.) PrintedintheUnitedStatesofAmerica FIRSTEDITION HBPrinting 10987654321 Contents Foreword ix Preface xiii Acknowledgments xxi AbouttheAuthor xxv 1. SharedGovernance:ItsHistoryandItsChallenges 1 ThePressuresonSharedGovernance 3 DifferencesinHowSharedGovernanceHasBeenPracticed 6 TheHistoryofSharedGovernance 7 DifferencesovertheNatureandPaceofChange 13 PressuresonTrustees,Presidents,andFacultytoChange 23 2. TheImpactofFinancialPressuresonGovernance 25 TheCausesofFinancialPressures 26 EffortstoControlTuitionandLimitGrowingFinancialAid 33 TheDangersofBusinessasUsualinTimesofBudget Problems 37 ASuccessful,ProactiveApproachtoFinancialPressures 42 3. TheImpactonGovernanceofContingent Faculty,OnlineLearning,andMOOCs 45 RelianceonContingentFacultyAffectsGovernance 46 OnlineCoursesandMOOCs 58 v vi Contents 4. The Impact on Governance of Questions About HigherEducation’sValueandCost 69 HigherEducationIsVulnerabletoCriticism 70 ClaimsThatCollegesAreFailingtoEducateStudents 75 ElectedOfficialsSeektoInfluenceHigherEducation 78 TrusteesAreAssumingMoreActivistRoles 87 5. Cautionary Tales: Protests of Presidential Actions andLessonsforSharedGovernance 89 ChiefFinancialOfficersSeekAcademicCostReductions 90 RecommendationsforPresidents 109 6. Cautionary Tales: Faculty Failures and Recom- mendationsforCollaboration 123 CaseStudies:FacultiesThatResistAdministrative Decisions 125 RecommendationsforFacultyMembers 141 7. CautionaryTales:BoardsThatFailtoFulfillTheir Fiduciary Responsibilities and Recommendations forChanges 153 ExamplesofBoardsFailingtoProvideOversight 154 LessonsLearned 167 RecommendationsforBoards 167 TheComplexityofTerminatingaPresident 169 RecommendationsforBoardsThatAreConfrontedwith ConcernsAboutPresidentialPerformance 170 8. ExemplaryTales:SuccessfulPresidents 185 TheUniversityofMaryland,BaltimoreCounty 188 KetteringUniversity 191 AmericanInternationalCollege 194 PitzerCollege 197 Commonalities 199 Resources 201 References 203 Index 215 Formyfather,ElliottResneck Formysisters, LindaResneckDiStefanoKrohnand BrendaResneckLaughery Formydaughterandson-inlaw,SashaandStevenSeigel Formygrandsons,SeanandRyanSiegel