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Performance-based governance: Discussion on future model for university funding

November 20, 2025

A meeting with university vice-rectors was organized at the initiative of the National Center for Professional Education Quality Assurance of the Republic of Armenia (ANQA) to discuss new approaches to developing and applying indicators for higher education performance. The discussion centered on the principle that state funding for universities should be results-oriented, reflecting the actual effectiveness of education quality, governance, and strategic development.

Director of the ANQA Ruben Topchyan noted that the newly adopted Law on Higher Education and Science of the Republic of Armenia provides for a performance-based approach to university funding, relying on performance indicators (KPIs). This model, already implemented in leading countries of the European Higher Education Area, offers an opportunity to make the education system more transparent, accountable, and strategically managed.

Ruben Topchyan emphasized that KPIs should not only facilitate data collection but also promote strategic thinking within universities. These indicators will allow for the assessment of educational outcomes, the efficiency of governance processes, and the contribution of universities to the country's socio-economic development. 

The development of performance indicators is being carried out within the framework of the three-year Erasmus+ KPI4HE project, coordinated by Yerevan State University. The indicators developed will soon be piloted in universities participating in the project. The meeting aimed to discuss the feasibility and applicability of the selected KPIs on a broader scale, involving all universities, as the KPI system is expected to eventually cover the entire higher education sector.

Anahit Terteryan, specialist at the ANQA's Institutional and Program Accreditation Division, outlined six key areas for data collection under the KPI4HE project: human resources development, collaboration strengthening, equal opportunity provision, quality of the learning environment, governance effectiveness, and research and innovation. Within the project, KPI piloting is currently focused on two main areas—human resources development and governance efficiency—selected based on successful European models. 

The discussion also addressed mapping labor market needs, graduate employment, updating educational programs, and developing student competencies. Participants stressed the importance of creating a unified methodology to evaluate university performance effectively.

The KPI development process should be viewed as a tool for improving the education system rather than as an administrative obligation. Active participation by universities, new proposals, and transparent, evidence-based data analysis will help establish a sustainable and justified funding system aimed at enhancing education quality and strengthening the country's human capital.

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