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Shaping Institutional Governance in a ‘BANI' Era
Embedding Foresight & Ethical Stewardship at the Heart of Institutional Governance
It is worth beginning with Lord Clement's reflections, which resonated deeply and set the stage for today's discussion. The UK-India trade deal will be remembered as a milestone for future generations, not only for its historic scope, but also for the scale of opportunity it unlocks between our two nations. It prompted me to think about the wider transformation under way in higher education, particularly relevant to many of the people here from business backgrounds. India deserves real recognition. Under Prime Minister Modi, the modernisation of the higher education system and the sweeping reforms introduced in the ‘2023 Higher Education Policy’ have fundamentally reshaped the landscape, enabling foreign institutions to operate in India in ways that were previously unimaginable.
I have seen this transformation first hand. For a country of India's size and global ambition, expanding capacity is essential, and the new policy has opened the door to genuine market creation. It is through this framework that the University of Southampton became the first University to establish a campus in India under the full legislation. Working with Indian partners has been an absolute pleasure. They have strengthened regulatory clarity, streamlined processes and embraced collaboration. We are genuinely excited about becoming a living bridge between the UK and India.
To understand how governance must evolve, I turn to personal experience. When I look back to 2011, which does not feel that long ago, UK universities operated under strict student number controls. We were told precisely how many domestic students we could admit in different broad disciplinary areas, although international numbers were uncapped for most disciplines. Each April, I knew with a high degree of certainty exactly how many students would arrive in the autumn. That certainty has disappeared. Once number controls were lifted, a pseudo-market emerged, and fluctuations that were once measured in tens are now measured in thousands.
Since 2021-22, our new intake across undergraduate and postgraduate programmes of around 11,000 students has fluctuated by more than a 1,000 students. These swings reflect not only the increasingly competitive UK environment, where students move between institutions more freely, but also geopolitics and rapidly shifting immigration policies. The results in profound difficulties for short-term and mediumterm planning, because forecasting income even a few weeks ahead has become enormously uncertain.
Where we once discussed space, finances and student growth, we must now incorporate sustainability, geopolitical exposure, digital transformation and regulatory uncertainty. The variables have multiplied, demanding greater diversity of expertise to interpret what sits before us.
Management theory for some time now has described the world as 'VUCA', meaning volatile, uncertain, complex and ambiguous. Recently a new concept has gained traction: 'BANI', meaning Brittle, Anxious, Non-linear and Incomprehensible. It captures perfectly the pressures now shaping institutional leadership. Boards today must absorb short-term shocks while grappling with far broader decision matrices. Where we once discussed space, finances and student growth, we must now incorporate sustainability, geopolitical exposure, digital transformation and regulatory uncertainty. The variables have multiplied, demanding greater diversity of expertise to interpret what sits before us.
In such an information-rich environment, one of the greatest risks is overload. Boards can become so consumed by analysis that they hesitate to act. A strong board must recognise when it has enough information to decide, rather than constantly seeking more and needing a perfect data set. To mitigate some of the uncertainty, especially around immigration, Southampton has pursued transnational education as a core strategic pathway. Establishing a campus in India forms part of our resilience strategy. It distributes regulatory risk and opens new avenues for long-term growth.
As I close, I want to acknowledge that boards today face an exceptionally demanding landscape, especially as artificial intelligence accelerates the pace at which information arrives and decisions must be made. Governance processes must evolve just as quickly. The world is changing at an extraordinary speed, and our structures and our mindsets must be ready to change with it.
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Prof. Mark E. Smith
Vice Chancellor & President, University of Southampton, UK
Owned by: Institute of Directors, India
Disclaimer: The opinions expressed in the articles/ stories are the personal opinions of the author. IOD/ Editor is not responsible for the accuracy, completeness, suitability, or validity of any information in those articles. The information, facts or opinions expressed in the articles/ speeches do not reflect the views of IOD/ Editor and IOD/ Editor does not assume any responsibility or liability for the same.
