This paper describes the Glion Declaration II, which resulted from the Glion Colloquium of 2000, an international meeting that focused on governance of universities. The Glion Colloquium is a private initiative that includes renowned scholars and higher education leaders from leading research intensive universities in western Europe and the United States. The Glion Colloquium examined stress factors related to how university communities balanced freedom and responsibility. Participants agreed that reduced government funding, the widespread primacy of research over teaching and advising, and new challenges presented by distance learning technologies and for-profit competitors combine to create obstacles to effective governance. To further complicate the mix, tools available to address these challenges vary from country to country. To adapt, the Glion Declaration II says higher education institutions should clarify the line between the responsibility of governing boards and the detailed management authority delegated to institutional administrators. Higher education leaders should also advocate for: an institutional embrace of public service trustee-selection processes that produce quality candidates; public accountability measures that gauge governing board performance; recognition of faculty contributions; and mutually reinforcing relationships between governing boards and chief executives. Participants and signatories are listed. (SM)