1 Forging the Future of Management Education Midwest Business Deans October 12, 2007 Jerry E. Trapnell, EVP & CAO AACSB International

2 The Journey Framing Our Issues and Challenges Determining Our Strategic Directions Increasing Our Impact Feedback and Discussion

3 Framing Our Issues and Challenges

4 Issues in Management Education Survey Short Term Faculty recruitment & retention 86% Financial resources63% Programs and curricula37% Assurance of learning22% Competition14% Research9% Long Term Faculty recruitment & retention 67% Programs and curricula57% Financial resources54% Competition23% Research22% Business & business schools 10% Assurance of learning3% Source: AACSB International Survey of AACSB International members about their most important short term and long term issues and challenges.

5 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

6 Thought Leadership Initiatives Priority score based on ratings of 5 (highest priority) or 4 (high priority)

7 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?

8 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.

9 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?

10 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

12 The Timeline Appointed – Jan Initial conclusions – Sept Member feedback – Dec Final recommendations – Jan. 2008

13 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.

15 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.

17 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

19 Increasing Our Impact Thought Leadership and Advocacy

20 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

21 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.

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