Why is investing in university governance critical right now?
In the challenging landscape of UK higher education, where financial pressures are mounting and the future feels uncertain, the instinct to cut costs is understandable. Universities across England are grappling with frozen tuition fees, rising operational expenses and shifting international student markets. Departments are being consolidated, courses are being trimmed and the pressure on staff is immense.
Amidst these difficult decisions, however, there’s one budget area that often gets overlooked, or worse, targeted for disproportionate cuts: governance.
And that, I would argue, is a critical mistake. During times of difficulty, one area which requires investment and support is governance.
Consider the sheer scale of oversight in UK universities. Using the Universities UK members of 141 institutions as a guide, and an average of just under 20 governors per university, we’re talking about a collective force of roughly 2,800 individuals entrusted with guiding these complex, multi-million-pound organisations.
These are the strategic navigators, the fiduciaries responsible for ensuring long-term sustainability, academic integrity and public accountability. When times are tough – and indeed, in many cases, when universities are facing crises – effective governance is not a luxury; it’s an absolute necessity.
Four ways to invest in your university governance.
1. Give governors the knowledge to lead confidently.
These 2,800 governors are professional non-executive directors and trustees, often unpaid, and senior professionals from diverse sectors, bringing invaluable expertise. But their understanding of higher education, its regulatory landscape, and its specific challenges cannot be assumed. They need ongoing training and development to grasp the complexities of university finance, student wellbeing and experience, research impact, and institutional reputation. Cutting this budget means sending ill-equipped leaders into battle.
2. Invest in skills-based recruitment for your board.
Can you imagine a situation where a university appoints an executive leader simply because they shared a CV with the institution? No. The Office for Students requires universities to ensure governors are considered fit and proper persons, who have ‘the qualifications, competence, skills and experience that are necessary for their role’.
Effective governance starts with the right people. This means moving beyond informal networks and investing in a competitive, skills-based recruitment process for new governors, which is aligned to the institutional mission and strategic ambition. Identifying individuals with the precise blend of commercial acumen, educational insight, and strategic foresight is crucial for navigating the challenges ahead. A robust budget is needed to support professional search and onboarding, ensuring the best talent is attracted and retained.
3. Back your governance lead with training and support.
Working with every effective governing body is a dedicated professional – the University Secretary, Clerk to the Board, or Director of Governance. Like many other areas of the education sector, this individual is the lynchpin, responsible for ensuring compliance, facilitating effective meetings, advising on best practice, and supporting the chair and governors. This role requires continuous development and networking to stay abreast of evolving regulations, emerging risks, and sector-wide challenges. Undermining this role weakens the entire governance framework. At a higher education governance conference last year, it was hugely disappointing to hear from governance leads who had been told they couldn’t purchase a conference place or train ticket, and were unable to attend one of the very few events organised for them.
4. Ensure governors can navigate through crises and change.
Crises in higher education demand decisive action and bold strategic shifts. Ultimately, it’s the governing body that must approve and oversee these transformations. They are the custodians of the institution’s mission and financial health. If they are to lead a successful turnaround, they need to be informed and confident in their oversight. Investment in governance enables governors to challenge, support, and steer the institution through its most challenging times.
Compared to other ‘development’ budgets, which might focus on operational improvements or staff training at various levels, the governance budget is about strengthening the very top tier of leadership. It’s about ensuring the individuals with ultimate responsibility for the institution’s survival and success have every tool at their disposal. Therefore, it’s disappointing to hear that the governance budget is under attack in many institutions.
Strong boards help universities survive tough times.
To cut corners during an era of unprecedented financial pressure and regulatory scrutiny is not just short-sighted; it’s a gamble with the future of our higher education institutions. Let’s remember that strong university governance is most needed when times are hard. These aren’t the times to scale it back.
Instead, we must empower it to lead the way forward.
How we can help.
We’re proud to support universities that recognise the strategic value of strong governance. The institutions we work with are tackling complex change agendas and understand the importance of equipping their boards to play a meaningful role.
Through our work in board and executive recruitment, we’ve helped higher education providers appoint non-executive leaders who offer insight, challenge, and sector-relevant experience. These individuals strengthen decision-making, extend networks, and support executive teams with confidence and care.
At Peridot Partners, we focus on recruiting governors, trustees, and senior leaders for education, charity, and health organisations. We understand the specific pressures facing higher education and the calibre of leadership needed to navigate them. Please do get in touch if we can assist you with your board recruitment needs.
Drew Richardson-Walsh is a Partner and Director of our Education Practice. He brings leadership experience from higher education and multi-academy trusts and works closely with clients to appoint exceptional executive and non-executive leaders.
