Managing Sustainable Performance and Governance in Higher Education Institutions: A Dynamic Performance Management Approach (System Dynamics for Performance Management & Governance, 5)

The fast-changing evolutionary process of global Higher Education systems systematically poses new challenges related to the appearance of innovative elements that lead academic governing bodies to question current managerial structures and methods. Due to this, theory and practice have gathered multiple contributions and experiences to support and further develop this evolutionary pathway during the past decades. Global competitiveness, economic and social growth are driven worldwide by knowledge and innovation. In this context, Higher Education Institutions play a crucial role as they primarily contribute to knowledge transfer and development and, as a result, foster regional development, employment, and economic wealth. The relevance of this role leads Universities to explore alternative solutions for managing their performance according to a sustainable perspective. This book draws on this flourishing debate on Higher Education policy and management and investigates an innovative systemic perspective to design and implement sustainable performance management systems for academic institutions. The conditions for the success of Universities, the critical issues underlying the creation of academic value, the dynamic complexity characterizing academic governance settings, the pluralistic audience of stakeholders and related expectations, the causal interplays between organizational performance variables, represent some of the central themes around which this work is developed. More specifically, the book suggests and discusses the adoption of a Dynamic Performance Management approach to frame the inherent organizational complexity of Higher Education Institutions, thus supporting a strategic learning perspective to design and implement relevant performance measures. This approach originates from the combination between conventional performance management and System Dynamics modeling. Many research and practice contributions prove that this methodological combination can boost the understanding and interpretation of value creation processes by identifying and exploring the causal connections amongst strategic resource allocation and consumption, corresponding performance drivers, emerging outputs, and outcomes. To test the effectiveness of this approach in University settings, a wide range of examples is offered in each book chapter. This allows readers to explore the advantages, limitations, and practical implications of adopting Dynamic Performance Management in Higher Education Institutions, as well as guide academic decision-makers towards a more robust approach to design and implement strategic management mechanisms in Universities. Preface Contents About the Author Chapter 1: Performance Systems in Higher Education Institutions 1.1 Introduction 1.2 Mission, Governance, and Stakeholder Groups of Higher Education Institutions 1.3 Main Organizational Features of Higher Education Institutions 1.4 Interdependent Levels in Academic Strategy Formulation 1.5 Framing the Relationships Among Organizational, Institutional, and Political Systems 1.6 Reforming Higher Education Institutions According to New Public Management Principles 1.6.1 Critiques to NPM and Evolution Toward New Public Governance and Public Value Management 1.6.2 University Performance-Based Ranking and Funding Systems 1.6.3 Critical Issues on the Performance-Based Ranking and Funding Systems: The Need for Introducing Performance Management in... 1.7 Designing Performance Management Systems in Public Sector Institutions 1.8 Focusing on Performance Management Systems in Higher Education Institutions 1.9 Closing Remarks References Chapter 2: Developing Performance Management Systems in Higher Education Institutions 2.1 Introduction 2.2 The Role of Performance Management Systems in Meeting Specific Information Needs of Higher Education Institutions 2.3 Framing Organizational Performance in Higher Education Institutions 2.4 Strategic Planning in Higher Education Institutions 2.4.1 Internal and External Analysis to Support Strategy Formulation 2.4.2 A ``Subjective ́ ́ View of Performance Management to Design and Implement Strategies in Higher Education Institutions 2.5 Performance Measurement in Higher Education Institutions 2.5.1 An ``Objective ́ ́ View of Performance Management to Frame Academic Value Creation Processes 2.5.2 An ``Instrumental ́ ́ View of Performance Management to Design Performance Measures in Higher Education Institutions 2.5.2.1 Strategic Resources in Higher Education Institutions 2.5.2.2 End-Results and Intermediate Results 2.5.2.3 Designing Performance Drivers and End-Result in Higher Education Institutions 2.6 Combining a ``Subjective, ́ ́ ``Objective, ́ ́ and ``Instrumental ́ ́ View for Enhancing Coordination and Consistency in HEI ́s A... 2.7 Closing Remarks References Chapter 3: Designing Dynamic Performance Management Systems in Higher Education Institutions 3.1 Introduction 3.2 Challenges Related to Performance Management Design and Implementation in Higher Education Institutions 3.3 Implementing Dynamic Performance Management Through System Dynamics Modeling 3.4 System Dynamics Modeling: Principles, Implementation Criteria, and Purposes 3.5 Relevance of System Dynamics Modeling into Management Sciences 3.6 A Literature Review of System Dynamics Applications to University Management 3.7 Conceptual, Insight, and Full-Fledged Simulation Modeling 3.8 A Dynamic Performance Management Approach to University Management 3.8.1 Applying Dynamic Performance Management to Fund-Raising Processes for Research in Academic Departments 3.8.2 A University Dynamic Performance Management Simulator to Explore the Synergies Between Research and Education 3.9 Advantages and Limitations of Using Dynamic Performance Management in Higher Education Institutions 3.10 Closing Remarks References Chapter 4: University ́s ``Third Mission ́ ́ Assessment Through Outcome-Based Dynamic Performance Management 4.1 Introduction 4.2 Defining Third Mission Activities in Higher Education Institutions 4.3 The Evaluation of University Third Mission: Conceptual Frameworks, Adopted Practices, and Ongoing Experiences 4.3.1 Third Mission Evaluation Practices in the European Union 4.3.1.1 Prime-OEU Project 4.3.1.2 U-Map 4.3.1.3 U-Multirank 4.3.1.4 AUBR 4.3.1.5 E3M 4.3.1.6 Intellectual Capital-Based Performance Framework for Measuring Third Mission 4.3.2 The OECD ́s Initiatives for Evaluating Third Mission Activities 4.4 Applying Dynamic Performance Management to Enhance Third Mission Activities 4.5 Applying Dynamic Performance Management to Enhance Third Mission Activities (Cont ́d): An Example Focused on University-Ind... 4.6 Closing Remarks References Chapter 5: Conclusions "The fast-changing evolutionary process of global Higher Education systems systematically poses new challenges related to the appearance of innovative elements that lead academic governing bodies to question current managerial structures and methods. Due to this, theory and practice have gathered multiple contributions and experiences to support and further develop this evolutionary pathway during the past decades. Global competitiveness, economic and social growth are driven worldwide by knowledge and innovation. In this context, Higher Education Institutions play a crucial role as they primarily contribute to knowledge transfer and development and, as a result, foster regional development, employment, and economic wealth. The relevance of this role leads Universities to explore alternative solutions for managing their performance according to a sustainable perspective. This book draws on this flourishing debate on Higher Education policy and management and investigates an innovative systemic perspective to design and implement sustainable performance management systems for academic institutions. The conditions for the success of Universities, the critical issues underlying the creation of academic value, the dynamic complexity characterizing academic governance settings, the pluralistic audience of stakeholders and related expectations, the causal interplays between organizational performance variables, represent some of the central themes around which this work is developed."--Cover page 4