In a world awash in data, the question is: Which numbers are important, and what should a board monitor over time to ensure mission fulfillment and economic vitality?
In a first-of-its-kind study of boards in theological education, the In Trust Center’s Governance Initiative found four data points – the “core four” – that predict institutional effectiveness across the sector. They are:
- High student-to-faculty ratio;
- Low CEO turnover;
- High student persistence rate;
- High frequency of annual budget surpluses.
Researchers were quick to point out that determining an upper limit (which certainly must exist) to student-faculty ratio was not a subject of the study but note only that ratios that decreased over time correlated with less effectiveness and ratios that increased over time correlated with more effectiveness.
“More than correlations, these four data points are historical predictors of institutional effectiveness,” said Amy Kardash, the president of the In Trust Center. “That is, they are indicators that exert significant influence on mission fulfillment and economic vitality with a 99% confidence level.
“In a time when there is more data available than ever, it’s important for boards to consider what really makes an impact for their institutions. Our study identifies critical KPIs that boards must track. While there may be other specific metrics that will be important for administrators to report on within a school’s context, these ‘core four’ are ones that every board must keep their eyes on.”
Rev. David Rowe, Ph.D., project director for the Governance Initiative, noted that the study did not link specific numbers to what “high” and “low” mean.
“There are not better numbers and worse numbers. It might be easier to think about these ratios and rates as increasing or decreasing over 5-10 year periods,” Rowe said. “From a board’s perspective, it may be more important for the institution to take steps to stem decreasing student-faculty ratios and increasing CEO turnover rates while bolstering persistence rates and achieving annual budget surpluses.”
School communities tend to thrive when a strong leader has a healthy tenure, and that can spell success across the board.
Over the past several years, CEO turnover has been high at schools accredited by the Association of Theological Schools. A school that has a relatively high turnover of executives can be hampered by the regular cycles of search and replacement, Kardash said.
Theresa Griffith, associate vice president for programs and initiatives, said continuity in executive leadership “is linked to effectiveness, and it’s not hard to see why.”
“School communities tend to thrive when a strong leader has a healthy tenure, and that can spell success across the board in advancement, enrollment, and mission fulfillment,” she said.
As a result, boards should consider how they can nurture good leaders and keep them fresh and well engaged in the school’s work.
Theological schools with good student persistence rates showed effectiveness, as did schools with budget surpluses over time, Rowe noted.
“Relative to the surplus, it seems obvious to people outside of higher education that a balanced budget isn’t the goal, it’s the baseline,” Rowe said. “Margin is something you can reinvest into the mission. If you find yourself in the inverse situation, you have to strategize how you change that metric over time.”
These findings have emerged from the In Trust Center’s study of governing boards and advisory bodies across theological education. The quantitative study gathered responses from more than 1,100 individuals at 192 ATS-accredited schools – representing 71% of accredited institutions – along with interviews involving executive leaders and board chairs and observations of board meetings. Researchers then analyzed those findings alongside two decades of institutional data collected by ATS, identifying correlations between governance characteristics and measures of institutional effectiveness.
The Governance Initiative has released previous findings, including that ambiguity of governance model and mode is linked to poor institutional effectiveness, as is high CEO turnover.
As well, the study has shown evidence that boards play a significant role in supporting leadership continuity, and there are indicators that suggest board structure and development impact institutional effectiveness.
Researchers are continuing to work through the study to find correlations that will help boards and leaders, and the In Trust Center in developing resources and expanding programs to further support boards. The research was designed not just to spotlight data but also to help schools engage with the data within their own context. The In Trust Center will continue to roll out findings from the survey as it also works to create ways to support board development including through the expansion of board development grants, Griffith said.
The Governance Initiative is funded by a grant from Lilly Endowment Inc., and Kardash said that she’s grateful for the support. The research, she said, should help theological schools prepare for the future.
We know that institutions are only as strong as their leadership and their boards. We believe this new data … (will) strengthen theological education.
“We know that institutions are only as strong as their leadership and their boards,” she said. “We believe this new data – not shared as a means of benchmarking but provided as an invitation to consider what a board is tracking, why it matters most, and how it is or is not linked to the school’s effectiveness aids in mission fulfillment – strengthen the future of theological education.”
The Governance Initiative started its survey work in 2024 to consider several research questions. It is part of the In Trust Center’s work to strengthen theological schools. The research questions include: Where is governance good and thriving? What are the markers of a strong board, and what are the impacts of it? Does a strong school indicate a strong board? What are the best preparations for boards for crises? What is the changing work of a board and how does that impact those who are called to serve in theological education?
In addition to research, the Governance Initiative has offered Board Development Grants to provide institutions funding for action-oriented board development work.
The In Trust Center’s website provides more information on the research, as well as board grants and other resources. It also provides discussion guides for both governing and advisory boards to help leaders think through how they might understand and use the information for their institutions.
Read more about the Governance Initiative at: intrust.org
