Outline of
President Jackson’s report to
the Faculty Senate of September 17, 2002
John R. Marcellus
Eastman School of Music
I.
Decentralized
University
A. Principle of decentralization to the lowest coherent
and responsible unit. A decentralized decision making structure modeled after
Harvard. Constantly in flux and under review.
1. Example-Business is carried out through the
departmental structure
a.
Departments know
the areas within their field in which to invest for the future within a certain
budget.
b.
Costs and
benefits are “internalized” within the department
c.
Differences
between undergraduate and graduate investments
1.
Undergraduate
education is spread to over 20 departments of the university
2.
Graduate
education and research captures reputational and other advantages.
d.
Allocation of resources goes beyond department
to the “College” or School and others more central.
1.
Example 1: merger
of College of Arts and Science and the College of Engineering and Applied
Science into The College.(has allowed to pursue an
aggressive decentralization of services previously provided by the central
administration into the hands of The College).
2.
Example 2:
endowment investments managed collectively because of combined $ resources;
3.
Example 3: more
effective to have one person in development to handle “planned giving” and
other development issues and conflicts to be handled from a
central source
3.
Endowment
spending rates: “review” by “higher
layers” needed to bring a longer term time horizon on the appropriateness of
spending today versus having money to spend in the future.
II.
Health Affairs
A. Clinical Medicine is a different “business” than
education
B.
Governance
Issues: Financial problems in academic medical centers can impact the credit
rating not just of health care but of the entire University.
C.
Alternative
governance structure goals for Medical Center
1.
Separate the
risks-minimize adverse credit ratings
2.
focus on
management and governance-with a medical center
a.
ensure respective
managers and governors were able to be selected
b.
focus on the
basis of identified core competencies
D. Restructuring
1.
Clinical delivery
system was not separated from School of Medicine/Dentistry/Nursing
a.
Still accountable
to academic mission
2. U of R “all under one roof” ties together
clinical, educational and
Research. U of R is in the business of clinical medicine
because
We are in the business of medial education.
2.
Three models
a.
Separate
operating subdivision owned by the university reporting to a National Board
b.
Two separate
operating subdivisions, both owned by university one covering medical affairs,
the other covering academic affairs.
c.
Separating U of
R. into two entities with a formal affiliation agreement with overlapping
boards.
d.
Report to BOT in
fall 2002, favoring model #3, explores implications of emphasized decentralized
decisionmaking