Forging the Future of Management Education

Midwest Business Deans October 12, 2007 Jerry E. Trapnell, EVP & CAO AACSB International 1

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The Journey

• Framing Our Issues and Challenges • Determining Our Strategic Directions • Increasing Our Impact • Feedback and Discussion

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Framing Our Issues and Challenges

4 Issues in Management Education Survey Survey of AACSB International members about their most important short term and long term issues and challenges.

Short Term Long Term

Faculty recruitment & retention 86% Faculty recruitment & retention 67% Financial resources 63% Programs and curricula 57% Financial resources 54% Programs and curricula 37% Competition 23% Assurance of learning 22% Competition Research 14% 9% Research Business & business schools Assurance of learning 22% 10% 3% Source: AACSB International

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Focus on a Changing Environment

• Curricula – Ethics – Social responsibility – Technology – Global perspectives – Relevant skills – theory vs. practice • Programs – Online and distance-learning – International partnerships and exchanges – Interdisciplinary programs

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Thought Leadership Initiatives

Priority score based on ratings of 5 (highest priority) or 4 (high priority) Doctoral Faculty Shortage

638

Value of Management Education

444

Impact of Research Learning Outcomes Assessment Ethics Education Media Rankings Alliance for Management Education Peace Through Commerce

181 180 427 405 380 157

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Challenges Raised by Board

• Global growth in business schools has been outpacing growth in accreditation.

• Should accreditation focus only on elite schools or elevate quality more broadly?

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Challenges Raised by Board

• The difference between AACSB membership and accreditation is not well-understood.

• External recognition of AACSB accreditation has not been sufficiently developed.

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Challenges Raised by Board

• The value of business schools (education and research) is not fully understood and appreciated.

• How should AACSB be organized to respond to external trends and issues impacting business schools?

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Determining Our Strategic Directions

Membership and Accreditation

11 Strategic Directions Committee Charge Recommend strategies to… 1. More effectively differentiate accreditation and membership 2. Increase the value of accreditation globally 3. Ensure accreditation reflects the global management education landscape 4. Address important emerging environmental issues

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The Timeline

• Appointed – Jan. 2007 • Initial conclusions – Sept. 2007 • Member feedback – Dec. 2007 • Final recommendations – Jan. 2008

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Membership Strategy

Maintain a single comprehensive organization for all members, but establish clear and enforceable policies to more effectively differentiate AACSB accreditation status from membership.

14 Tentative Recommendations: For Discussion • Member-only institutions should be distinguished by an appropriate adjective, such as:    Associate member Affiliate member Non-accredited member • Member-only institutions should not use the AACSB corporate logo.

• Staff shall monitor and manage against policies, with clear procedures for violations.

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Accreditation Strategy

Reassert and strengthen accreditation emphases on overall high-quality, mission-linked accreditation, and professional judgment.

16 Tentative Recommendations: For Discussion • Enhance peer review training to ensure focus on mission-based philosophy, attributes, and professional judgment.

• Significantly enhance the external recognition and value of accreditation.

• Develop a clear strategy for regions where growth potential is significant.

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Accreditation Standards Directions

Maintain institutional scope of accreditation and emphasis on highly qualified faculty, but specify guidelines that allow for deeper assessments of qualifications and professional judgment.

18 Tentative Recommendations: For Discussion • Program exclusion criteria should reflect cultural, historical, and regulatory contexts.

• Standard 10 guidelines should allow schools to make the case for faculty qualifications beyond current categories, by:  Broadening the definition of professional qualification or  Introducing a new category of “mission-qualified” faculty with objective expectations as guidelines

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Increasing Our Impact

Thought Leadership and Advocacy

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Building the Future of Research

• Report of the Impact of Research Task Force (Draft for Comments) – August 3 • Task Force chaired by Joe Alutto • Studied scholarship and research in business schools • Examined value propositions and incentive structures • Offered 7 recommendations to increase value and visibility of business school research

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Building the Future of Research

Recommendations for…

• Strengthening the alignment of research to the school’s mission.

• Increasing emphasis on measuring impact of research in accreditation.

• Building mechanisms to enhance collaboration among academics and practitioners.

• Conducting additional research on distribution channels and the interaction between research and management education.

22 Creating Post-Doctoral Bridge to Business Programs • One of several initiatives to address growing doctoral faculty shortages.

• Transitions non-business doctorates to high-demand business fields.

• AACSB commitment to AQ status for five years.

• Five programs endorsed for implementation as early as Summer 2008.

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Five New Programs

Institution University of Florida Grenoble Ecole de Management University of Toledo Tulane University Polytechnic Institute and State University Discipline Focus Initiation Date ACC & FIN, MKT & MGT, IB, Entrepreneurship MKT, FIN, ACC, Strategy Supply Chain Management FIN (FIN, ACC), MGT (OB, Strategy, MKT) MKT, FIN May 2008 Fall 2007 June 2008 Summer 2008 Summer 2008

24 Exploring the Impact of Business Schools • New Task Force to “study and provide evidence of the impact of business schools.” • Focus on economic and social impact of business schools. • Strong global dimension linked to the importance for economic competitiveness.

• Deliverables include targeted documents for specific audiences and a plan for advocacy.

25 Moving from “Being Good” to “Doing Good” • Consolidating efforts related to promote ethics, governance, and Peace Through Commerce education.

• Expanding Ethics and Governance Conference to include social responsibility and sustainability.

• Partnering globally to promote and foster responsible management education.

26 Principles for Responsible Management Education • As a co-convener, AACSB endorses the Principles for Responsible Management Education (PRME).

• AACSB members are among the initial set of schools eligible to adopt the PRME. All schools will be eligible in the future.

• Annual reports are will demonstrate ongoing commitment to the PRME.

• AACSB will provide visibility to member schools that adopt the principles.

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