|Today with the report released by Judge Louis Freeh, the Penn State Board of Trustees delivered on the commitment we made last November when we engaged Judge Freeh to conduct an independent investigation into the University’s actions regarding former Penn State employee, Jerry Sandusky, and the handling of allegations of the child abusecrimes of which he has since been found guilty.Judge Freeh and his team conducted a rigorous, eight-month investigation into all aspects of the University’s actions to determine where breakdowns occurred and what changes should be made for the future. We like many others have eagerly anticipated Judge Freeh’s Report of the findings of his investigation.His report has just been released at http://thefreehreportonpsu.com/ and we currently are reviewing his findings and recommendations. We expect a comprehensive analysis of our policies, procedures and controls related to identifying and reporting crimes and misconduct, including failures or gaps that may have allowed alleged misconduct to go undetected or unreported. We will provide our initial response later today.
We want to ensure we are giving the report careful scrutiny and consideration before making any announcements or recommendations. We are convening an internal team comprising the Board of Trustees, University administration and our legal counsel to begin analyzing the report and digesting Judge Freeh’s findings.
As we anticipate the review and approval process will take some time, our initial response and immediate next steps will be presented at 3:30 at the Dayton/Taylor Conference Room at the Hilton Scranton & Conference Center.
These top-line reactions will provide an overview of our process for developing and implementing a plan once we have studied the report and have a better understanding of what it means and how we can implement findings to strengthen Penn State’s role as a leading academic institution and ensure that what occurred will never be allowed to happen again.
By Chris MacDonald | January 23, 2012 I couldn’t have said it any better!
So, should the members of the Board be asked to resign? And if not, should they do so of their own volition?
To answer these questions, here is what needs to be considered:
First, did the Board fail in its fiduciary (‘trust-based’) duties? It’s worth noting that the Board has been under fire from two different directions. Some think the Board failed in not staying sufficiently ‘on top of’ the Sandusky situation, and in resting satisfied with whatever dribbles of information the university administration saw fit to feed it. (The only detailed account I’ve read so far paints the Board in a rather sympathetic light, in this regard.)
Others think the Board failed by firing—in their eyes, scapegoating—the beloved Paterno. Both sides think the Board screwed up, but for very different reasons. Of course, both can be right at the same time. Perhaps the Board has just generally done a bad job, first by letting the situation get out of hand and then by botching the task of responding to it. Rather than cancelling each other out, maybe these two sets of complaints just compound each other.
Next, we need to ask, if the Board failed, was it a failure of people or a failure of structure? A board, after all, is both an institutional structure and a set of people occupying that structure.
If it was a failure of structure (and, as governance expert Richard Leblanc wrote back in November, there are serious problems with how Penn State’s board is configured) then there’s little reason to think a change of personnel on the Board is either necessary or sufficient to fix the problem. And if instead it was a failure of people, then getting rid of them all is a blunt, but perhaps effective, way to solve the problem—providing, of course, that the new people brought in to replace them are better.
Of course, the problem is that in a case like this it’s difficult to distinguish between a failure of people and a failure of structure. Perhaps people better-suited to the job would have risen above the confines of a poorly-structured board, or lobbied to have its structure revised. Human behaviour and institutional structure shape each other.
And finally, regardless of the above questions about the sources of failure, it might be the case that the removal or resignation of the Board is necessary in order to restore public confidence. That is, even if the individuals currently on the Board are not in any way to blame, the fact that key stakeholders have lost faith in it might be sufficient grounds for calling for the entire Board to go. Without the confidence of key stakeholders, any Board is going to find it hard to do its job.
But then, while the current Board certainly faces challenges, so would an entirely new Board. The loss of continuity that would result from a 100% change in membership could seriously impair the Board’s functioning, and make it even more reliant on—and susceptible to control by—university administrators. There’s a good reason why well-governed boards have careful plans in place to make sure that new blood is brought in regularly, rather than en masse. In the end, it seems to me that the best prescription is this. The Board of Trustess at Penn State needs to see substantial structural change. It also needs enough new blood to restore confidence, while retaining enough of the old guard to ensure continuity. Beyond that, the Board is just going to have to do its best to muddle through whatever challenges lie ahead, with whatever strengths and limits it possesses, just like any other board