I sometimes just wonder, a lot of professors are bad at teaching because they don't have to be good at it. Is it the same for universities? It feels like reputation for universities are quite detached from the courses they have or teaching quality. Rankings focus a lot on quantitative measures, but teaching quality is hard to measure quantitatively. The output of universities, i.e. the quality of their students, depend on both the teaching quality and "IQ" of their students before admission, which is mostly a feedback loop because universities with good reputation get the best students... Optimizing for teaching quality also means that professors spend more time on teaching and less on research, which may reduce their research output and reduce the ranking, which has a more immediate effect on the reputation than teaching quality.
I think it doesn't really enter the equation. The single worst lecturer I've had at university is now a professor. I don't enough about tenure tracks and we also call them differently (not adjunct, associate, etc) - but he's still there, 20y later, teaching (I think he just had gotten his PhD back then). I can only hope he has improved from "open script, read one page at a time, close script, dismiss".
> spend more time on teaching and less on research, which may reduce their research output
It's ironic that universities are primarily judged by their research output rather than their teaching, even though their original purpose was to share and preserve knowledge.
But the academic paper printer goes brrrr!
Teaching is not really relevant in the hiring process of professors.
I saw several committees for prof position and teaching is treated like a checkmark. You should done it and provide a small sample lecture (which you prepare much more than your average lecture) and don't have to suck at it. After this checkbox, the differentiating factors are about citations and how much grant money you can/could/do have... (Western Europe, maybe somewhere else it's different).