University governance is about stewardship, strategy and long-term value

The publication of the revised CUC Higher Education Code of Governance marks an important moment for the sector. In this interview, James Dunphy reflects on the role governing bodies must play in helping institutions navigate uncertainty while remaining focused on their long-term mission.

James talks to Lee Sanders, Saxton Bampfylde’s Senior Advisor to the Higher Education Practice, about the purpose and ambition of the new Code. His argument: effective governance is about far more than compliance and oversight. At its best, it supports strong executive leadership, nurtures institutional culture, stewards long-term value, and enables universities to keep delivering for students, staff and society.

At a time of significant challenge and change across higher education, we hope the discussion offers a thought-provoking perspective on how governing bodies can lead with confidence, resilience and purpose.

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What are the main challenges and opportunities facing higher education and governance at the moment?

One of the most important starting points is that higher education has an enormous strength base – and that includes on our governing bodies. Across the UK, universities continue to deliver real value for people, businesses and communities, and they remain internationally recognised for their quality and impact. While higher education faces major challenges there are real opportunities too. Institutions are thinking seriously about how to respond to changing student needs, AI, fresh partnership models and different ways of working, and many are already using this period to rethink their future with ambition as well as realism.

That said, the external environment is undeniably demanding. From the after-effects of the pandemic through to cost pressures at home and wider international instability, universities have had to operate in conditions that are more volatile than they were only a few years ago. Governing bodies and executive teams are therefore having to think carefully about strategy, sustainability and transformation all at the same time. In that context, governance really matters because it helps institutions respond not just defensively, but with a clear sense of long-term purpose and opportunity.

How does the 2026 revised CUC Governance Code respond to those opportunities and challenges?

The new Code takes account of that more challenging operating environment and has been built through an extensive process involving evidence from across the sector as well as students, staff, government and regulators.

It also headlines the commitment CUC members have to demonstrating the highest standards of governance. In doing so, the Code places more emphasis on culture and behaviour and on governing boards taking responsibility for ensuring governance is robust, constructive and focused on the delivery of the institution’s purpose and values.

The Code also highlights the critical role of partnership between the governing body and the executive, as well as sharpening expectations around strategic oversight and risk and performance. In that sense, the new Code is less about procedural compliance and more about setting out what effective governance can and should look like in practice.

In what ways can university governance support stronger institutional and academic performance?

Governance is not merely a technical exercise. It is about ensuring an institution has the right strategy and can deliver this with confidence, whether that means a brilliant student experience, impactful research, or widening access to opportunity.

Governing bodies need a clear understanding of the opportunities and risks surrounding education and research and of how academic success, reputation and financial sustainability connect. That includes bringing both challenge and support, testing assumptions, strengthening plans and helping leadership teams deliver in increasingly complex conditions.

What role should governance play in institutional transformation?

Higher education already has a strong track record of transformation, even if current pressures can make that easy to forget. Universities have always evolved in response to changing student needs, public expectations and economic realities.

Governance helps ensure that transformation is not an end in itself, but a way of ensuring enduring value.  It can also ensure that transformation done well helps us maximise the value universities deliver. Governing bodies  help institutions define their purpose; they also collaborate with the executive to set strategy. They stress-test the transformation plans that sit beneath strategy, support executive teams through difficult decisions, and keep sight of the long-term value an institution creates for students, communities and partners.

That stewardship role is fundamentally important – a key contribution governing bodies make is to look beyond the immediate and ask what will protect academic purpose, enhance opportunity and preserve the institution’s value over time. In that sense, governance provides a framework not only for setting the direction for change, but for making sure change serves the institution’s mission and the needs of its stakeholders.

How important is partnership working between governing bodies, executive teams and academic governance structures?

Effective governance does not work in a silo, and institutions are strongest when the governing body, the executive and academic governance structures such as senate or academic board work in genuine partnership.

The governing body is the primary governing authority of the institution but to deliver this successfully it often works in close partnership with other parts of the institution.  A key example of that partnership in practice is that governing boards and executive teams collaborate in setting institutional strategy.

Academic governance is another area where the governing body works in partnership but, as the Code states, to be effective this requires a clear definition of roles, together with mechanisms which facilitate effective interaction and decision making between the governing body and the Senate or Academic Board on matters of academic governance.

Where do you see the recruitment and development of governors heading?

The effectiveness of the governing body’s institutional leadership is essential to the success and sustainability of the institution and, therefore, serving on a governing body is both a privilege and a responsibility.  The sector benefits from extensive talent on governing bodies and across UK nations governors are leaning in to support their institutions to be successful.

Skills matter but so too do culture and behaviours.  Key to this is the governing body being the place which brings together a diversity of backgrounds, skills and expertise – but which is focused on applying that talent in shared purpose, in the stewardship of value.

Should governors be remunerated?

The question of remuneration of governing body members has come up at points in the review work and it would be fair to say there remain a variety of views – some of which are strongly held.  Ultimately where the Code has landed is that board effectiveness ought to be the key consideration.  The Code sets out that governing bodies should agree their approaches to remuneration, with a clear stated rationale which assesses that approach against the ability to recruit suitably committed, diverse and talented members.

And finally, how optimistic are you about the future?

I remain optimistic and for good reason.  Over the last 20 years, I’ve seen – time and again – how our sector has shown it is able – through its workforce, its leadership and indeed through our students – to respond to changing conditions and adapt successfully. That really matters, for our people, for our economy and our international competitiveness.  It’s one of the reasons I’m so pleased to see CUC launch its new Code this summer – to support stewardship, strategy and long term value across our HE sector.