After months of information collection and analysis of the University's management processes, on-site visits by a review panel, and interviews with administrators and teaching staff of the University, the University Grants Committee (UGC) has issued a management review report which has many good things to say about the University. It was impressed by the high standard of the documents provided for the review, the overall calibre of the staff it met and their commitment to the University, the capable leadership of the Vice-Chancellor, and the uniqueness of its collegiate system. The panel also commended the University on the clarity and participatory nature of its planning processes, the flexibility and transparency of its resource allocation mechanism, the efficiency and cost-effectiveness of its administrative units, and the widespread and effective application of information technology on campus.

Apart from commendation on the University's management practices, the UGC report also contains constructive suggestions for each of the review areas: strategic direction; resource allocation; implementation of plans; roles, responsibilities, and training; service delivery; and management information and systems. In response to the report, the University has issued an official statement. The full text of the report and the University's response has been posted on the CUHK website (http://www.cuhk.edu.hk/mgtreview/) for public viewing. The following are the highlights of the UGC's comments, suggestions, as well as the University's response to them.

Strategic Direction

Overall commendation:

CUHK's mission and overall strategic plan enjoy widespread ownership; management structure is clear and can ensure consultation and review at various levels; planning process is participatory in nature; academic, resource and administrative planning are clearly linked through the committee structure.

Suggestions and response:

UGC:	Greater formality in integrating its plans, for example, by developing an institutional development plan which documents all its strategic initiatives; more external input for the University's planning process.
CUHK:	Will continue to review and update its overall strategic plan and increase the range of external input for planning purposes.

Resource Allocation

Overall commendation:

Resource allocation process is performance-based, transparent, effective, and flexible; the New Funding Model is working well and provides incentives for achieving value for money; management is lean and efficient; administrative cost is one of the lowest among local tertiary institutions.

Suggestions and response:

UGC:	Maximize the potential of external funding sources.
CUHK:	Will review the allocation process and encourage greater flexibility, but has difficulty meeting all demands due to the dire lack of buffer space and the long time lag between the identification of needs and UGC/government approval for new space and new buildings.

Implementation of Plans

Overall commendation:

Processes to ensure the implementation of plans are effective; procedures to monitor the progress of implementation are clear and allow wide participation.

Suggestions and response:

UGC:	Formalize the best practice in implementation and monitoring across the University by installing a framework of milestones and performance indicators.
CUHK:	Clear milestones and performance indicators already exist in many units but will continue to be developed across the University.

Roles, Responsibilities, and Training

Overall commendation:

Staff members understand their roles and responsibilities well and have a strong sense of identity with CUHK; the vice-chancellor has a clear leadership style and is able to strike a good balance between strong executive leadership and maintaining a spirit of collegiality; management structure and reporting lines are clear and well-defined; the colleges play a unique and important role in the provision of a balanced education and the generation of useful resources; the enhanced staff appraisal scheme can facilitate communication and human resources planning, training, and development.

Suggestions and response:

UGC:	Develop the dean's post into a full-time and appointed position.
CUHK:	The issue has been debated at the University with the majority of its members favouring elected deans working on a concurrent basis, but the University will continue to review the system, which is working well currently.
UGC:	Ensure proper delineation of roles and compatibility between the School of Continuing Studies (SCS) and faculties; give more representation to the development of continuing education on the Administrative and Planning Committee (AAPC).
CUHK:	Has adopted an updated policy in February 1999 to set strategic directions for different professional development and continuing education programmes and has installed mechanisms to ensure synergy between SCS and academic departments over the offer of programmes; is in the process of making statutory amendment to include the director of SCS as a full member of the Senate; will consider how the development of continuing education can be better represented on the AAPC.
UGC:	Coordinate staff training and development programmes more formally, ensuring greater linkage between performance appraisals and the identification of training needs.
CUHK:	This is already being done with the launch of an updated policy and structure for staff training and development matters.

Service Delivery

Overall commendation:

A service culture is in place, especially among administrative units, to provide satisfactory services to users; review mechanisms are well-established across the university; the internal management efficiency reviews have been successful in achieving a 10 per cent productivity gain or a 10 per cent cost savings in relevant units via re-engineering and reorganization.

Suggestions and response:

UGC:	Comparison with other institutions locally and overseas to identify best management practices in order to improve continuously; expand its management efficiency reviews to cover academic departments.
CUHK:	Will step up efforts at bench-marking and will consider whether to extend management efficiency reviews to teaching departments.

Management Information and Systems

Overall commendation:

There is widespread and effective application of information technology across the University; CUHK has been conscientious in assessing and addressing user requirements; the IT Strategic Committee has been successful in mapping out an over-arching competitive IT strategy for the next five years.

Suggestions and response:

UGC:	Continue to develop a coherent IT strategy and coordinate responses to management information requirements.
CUHK:	Will build on an excellent start and continue to improve its IT strategy for the benefit of all academic and administative units as well as all students and staff as they march into the 21st century.