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Purpose: The purpose of this paper is to investigate and assess the role played by university governance in the effectiveness and efficiency of the higher education system through literature analysis and the management evaluation method of Organization and Methods (the O and M technique) and argue for a more radical change in, and greater scrutiny of, university governance so as to improve the efficiency and effectiveness of university operations and thus yield a more optimal satisfaction of social needs. Design/methodology/approach: The paper employs the O and M technique in order to investigate and assess the role played by university governance in the effectiveness and efficiency of the higher education system. Findings: The "objective" is education and knowledge and there is no room for experimentation in the system. The higher education sector does not need experiments to develop further. Rather, it deserves cautious, creative and innovative consideration and needs a very distinctive treatment of national problems. No matter the policy orientation of the system, higher education policy makers should not forget that higher education has a tremendous influence on peoples' attitudes and beliefs so the focus should be on the actual knowledge on social responsibility and on the commitment of higher education to serve social interests and needs. Research limitations/implications: The analysis developed in this study would benefit from a deeper exploration by investigating more numerous and diverse examples from the international arena of higher education. Originality/value: This study acts as a complement to previous research on higher education governance since it develops further the analysis and the understanding of university governance. By using as examples two countries with different orientation in their higher education system (mainly due to differences in cultural and ideological perceptions) and keeping in mind that there is no ideal model for university governance, this study could enlighten decision makers in any country to develop a more effective and constructive model of university governance that would serve societal interests more effectively.