Annex D: Principles of good management practice

Introduction

This annex presents the Principles of Good Management Practice which guide the work of the Management Review Steering Group (MRSG) and the Review Panels in their work.

The MRSG recognises that each institution has its own mission, history and culture, as well as varying in size and disciplinary spread. For that reason, it considers that it would be inappropriate for this review to impose or even suggest that the management style or processes should be the same in each institution. Therefore, in consultation with the Consultative Committee, the MRSG has developed the following Principles of Good Management. The form in which these principles are put in place will differ according to the circumstances of each institution.

The principles relate to all the management processes across an institution in the different areas of academic administration, research administration, maintenance and development of the estate, procurement, student support services, human resources, IT and finance.

As the reviews progress, the principles will be refined as the MRSG, the Review Panels and the institutions learn from the experience.

The Principles of Management Practice

I. Development of the strategic plan

  1. The strategic plan is consistent with the mission of the institution
  2. The strategic plan is developed using both internal and external contributions and information. The development process provides the opportunity for the institution to learn from its own performance and from external developments
  3. The development of the strategic plan is an iterative process whereby different elements of the plan - academic direction, academic facilities and services, staffing, estates, finance, IS - are brought together to form a consistent and coherent plan
  4. Mechanisms are in place to ensure that any decision which has significant resource implications (for revenue, expenditures and capital) is only incorporated in the strategy after those implications have been identified, estimated and built into future plans
  5. There is a mechanism to facilitate the 'ownership' of the strategic plan and supporting operational plans through use of the management structure

II. Resource allocation

  1. There is a clear mechanism and criteria to determine priorities for resource allocation - the criteria follow from the strategy and inform the planning process
  2. Mechanisms and formulae, if any, for allocating resources (for example, performance based formulae and the use of 'top-slicing') are understood and transparent
  3. There are agreed ways of allocating resources on an ad hoc basis as necessary
  4. The resource allocation process provides incentives for increased value for money in all functions (academic and non-academic)

III. Implementation of plans

  1. Operational plans are developed from the strategic plan and include milestones and performance measures for regular monitoring
  2. It is clear who is responsible for the implementation of each plan component and how that responsibility is to be discharged
  3. Appropriate action is taken as a result of the outcomes of monitoring the implementation of the operational plans

IV. Roles, responsibilities and training

  1. There is a clear management structure, with the managerial responsibilities, reporting lines and means of accountability well defined and accepted by all concerned; the scope of any delegated authorities is clear to both parties
  2. The responsibilities of each member of staff is defined and included in a job description; there is a staff appraisal process for the performance of individuals against their tasks
  3. For each committee, its terms of reference are clear, unambiguous and accepted by its members; in particular it is clear whether a committee is consultative, advisory or decision making; each is subject to periodic review explicitly to consider its continuing usefulness
  4. The competencies of committee members and staff are appropriate to their roles, with training available relevant to their needs, especially for those with new managerial responsibilities (eg financial responsibilities)
  5. There is clarity in roles and responsibilities with respect to committees and individual staff members, especially in relation to the roles of professional staff

V. Service delivery

  1. There is a process to ensure that the University is meeting the administrative and operational needs of its students, staff and external constituencies - this includes mechanisms whereby service users can comment on the level of service, priorities and related performance improvement plans and mechanisms to ensure that the plans are acted upon
  2. There is a regular review processes (or audits) in place to assess and improve the performance and structure of all administrative, academic and committee functions and services (eg to ensure that there are no unnecessary steps, duplication of activities or levels of management)
  3. There is appropriate means to respond to external and internal audits or reviews of functions with structures and processes such that change is possible within reasonable timescales

VI. Management information and systems

  1. In producing management information, both financial and non-financial - the differing needs of different users are established, assessed and reflected in the information provided to users
  2. There is a procedure in place to ensure that all management information used in decision making and monitoring is adequately reliable, valid and consistent and that the level of detail given to users is appropriate to their needs
  3. Systems in place support administrative and management processes across the institution. Systems are developed and operated on the basis of user need
  4. Systems are reviewed on a regular basis taking full account of user feedback and other benchmark information
  5. Disaster recovery exist plans for all systems, for example with respect to the Year 2000 issue