Beruflich Dokumente
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I want to thank two anonymous referees and the associate editor for their helpful comments and suggestions. A particular note of gratitude goes to Jere
Hawn, who was instrumental in the early versions of this case and its formulation.Without his assistance, this case might have never been started.
INTRODUCTION
Exhibit 1: The Value of Accreditation
Sara, are the papers ready for the meeting? asked dean In a free market, consumers can easily shift purchases from one firm
to another. Consumer preferences and dollars are captured in firms
Stewart Armstrong.
revenues, profits, and financial statements. Investors use the financial
Yes, dean, they are, Sara answered.
information to assess a firms success and future prospects. But when
Stewart is the dean of the College of Business (COB) at evaluating not-for-profits or governmental agencies, the typical for-profit
Northern State University (NSU). Stewart is replacing the financial measures dont work as well. While the financial statements
retiring dean, Ben Albertson. At Stewarts previous university, of a homeless shelter, a hospital, a city, or a university can provide
he was seen as a visionary with substantial accomplishments. useful information about the resources and expenditures, the financial
statements dont convey any information about the organizations
Nonetheless, some faculty feel Stewart can be abrasive and
effectivenessi.e., the decrease in homelessness, successful patient
terse in his pursuit of getting things done.
outcomes, the maintenance of city streets, or whether students are
As Stewart exits his office, Sara hands him neatly getting a quality education.
packaged binders that contain the Association to Advance
Accreditation is the process in which a third party evaluates an
Collegiate Schools of Business (AACSB) continuous
organization against a set of objective standards and attests whether
maintenance review standards and other pertinent the organization is effectively meeting those standards. Accreditation is
documents. Accreditation answers the question, Does the a particularly efficient method to gather and convey information about
COB provide a quality education? Seeking accreditation organizational effectiveness, particularly when organizational success
requires extensive documentation demonstrating that a isnt measured by profits. The Association to Advance Collegiate Schools
of Business (AACSB) is one organization that accredits business schools
college adheres to accreditation standards. Since achieving
and colleges. An AACSB accreditation signifies that the school has a
accreditation about 20 years ago, NSUs COB has grown in
long-term commitment to maintain, develop, and implement a high-
enrollment and has gained a quiet reputation as a highly quality education to its students. Accreditation isnt a one-time event; it
rated regional state university. Every five years the COB happens every few years. The reaccreditation process monitors whether
must go through an accreditation maintenance review the organization continues to follow standards and is making progress to
(hereafter, reaccreditation), which is an extensive review of alleviate any weaknesses identified in previous evaluations. Prospective
students can use accreditation to determine if they will receive a
the COB. Failing reaccreditation is problematicnot only is
relevant, high-quality education. Employers can use accreditation
a colleges reputation tarnished, but heads can roll.
to determine whether the graduates will have the requisite skills.
Accreditation isnt the only method to assure an organization is meeting
a set of objective standards and providing a high-quality education, but
accreditation is an efficient method to communicate the information and
is widely recognized.
Accounting Department Mission: The Accounting department provides a high-quality undergraduate accounting education. We coach students in
communication and application of accounting methods. Faculty maintain intellectual curiosity and contribute positively toward a scholarly experience.
Background: The departments focus is training students to enter public accounting. Students typically enroll in additional accounting courses or double
major to attain the required credit hours to obtain a certified public accounting (CPA) license. There are numerous accounting electives, which faculty
believe is a strength, but some classes rarely fill. CPA exam pass rates are consistently in the top 20 in the country.
Management Department Mission: The Management department advances and disseminates knowledge in management and information systems.
We provide high-quality educational programs, publish theoretical and applied research, and serve university, professional, and community organizations.
Background: Management has the highest student enrollment growth, but faculty funding has not kept pace. Consequently, mandatory prerequisites
offer fewer seats than students need. These bottlenecks have negatively affected on-time graduation rates. Some departments have started waiving
management prerequisites for students so that on-time graduation goals can be met.
Economics Department Mission: The Economics department provides students with rigorous training in both economic theory and the ability to apply
economic analysis in problem solving. Applied and theoretical research are an integral part of our mission. The department strives to serve the profession
and raise economic awareness within our community.
Background: Economics has the largest COB faculty. Its the only COB department to offer courses under the General University Requirements, which
increases credit hours and department budget dollars. The department has been very successful in securing external grants to develop community-based
business programs and to increase visibility.
Finance Department Mission: Our mission is to advance the understanding and appreciation of resource allocation both within and between
organizations through quality education, scholarship, and service.
Background: The Finance department has a reputation for rigor. Graduates are well trained, but student placement isnt satisfactory. Possible reasons
include (1) the long distance to large cities, (2) competition from better known universities, and (3) faculty teaching and research demands leave little time
to nurture recruiter relationships.
Marketing Department Mission: The Marketing department provides students a strong foundation in applied marketing, communication, and a global
orientation. Students are involved in their own education through internships and projects. Scholarly activity is an integral part of our instructional mission.
Background: The department encourages majors to take psychology and sociology classes to better understand human behavior. But shifting credit hours
outside the COB costs resources since internal funding allocations are based on credit hours. The department downplays grade point averages. Instead,
the department encourages students to develop a completed projects portfolio. The department believes the portfolios have increased the quality of
student placement.
University Mission
NSU is committed to excellence in teaching, scholarship, and service in a student-centered environment with a liberal arts foundation and opportunities to
develop professional skills. We serve the state citizenry by providing undergraduate and select graduate programs. We provide students with high-quality
personalized teaching and learning. We strive to:
Instill graduates with a lifelong passion for learning that fosters individual curiosity, intellectual rigor, critical thinking, and creativity.
Promote scholarly and creative work of significance.
Create student opportunities for leadership, civic engagement, and social responsibility.
Engage a diverse student body, faculty, and staff in active learning.
Provide a sustainable campus to support learning and environmental stewardship.
Table 3: Southern State University (SSU) History and Mission and COB Mission
University History
The Southern State College was started in 1882 as a teachers school. The campus grew rapidly in size and program offerings following World War II.
In response to increasing demand for regional professionals, a wide range of undergraduate degree programs were offered. The name was changed to
Southern State University in 1977, and the COB was formed. SSU is located in a bedroom community of 10,000 people and is part of a metropolitan area
with a population of 450,000.
University Mission
SSU is a student-centered, regionally based, comprehensive university. Its mission is to prepare broadly educated, technologically proficient, and highly
productive citizens to attain meaningful careers, to enjoy enriched lives, and to make contributions to a culturally diverse society. SSU will achieve its
mission by providing:
A quality student-centered learning environment characterized by a rigorous and challenging academic experience.
Professionally accomplished faculty who are strongly committed to student learning and committed to our communities.
High-quality programs that build on the regions assets and offer a broad range of choices as appropriate to the needs of SSUs students and the
region.
Exceptional student support services, resources, and facilities
A rigorous, collaborative, cross-disciplinary, and engaged student-centered learning experience that is relevant to the region.
An academic community culture that supports and engages faculty and staff throughout their careers.
Academic programs that benefit the university, the region, and the world.
Growth of resources and capacity to enhance academic quality.
Management of resources, capacity, and people effectively and efficiently.
University Mission
As a public research institution, the university enhances the intellectual, creative, and practical abilities of the individuals, institutions, and communities
that we serve by fostering learning, inquiry, and engagement. ESU offers a premier undergraduate experience, conducts and stimulates world-class
research, graduate and professional education, scholarship and arts, and provides an exemplary working and learning environment that fosters
engagement. We seek to achieve our mission by:
ffering the best undergraduate experience in a research university.
O
Nurturing a world-class environment for research, scholarship, graduate education, and the arts.
Creating an environment of trust and respect through positive engagement.
Developing a culture of shared commitment to quality in all of our activities.
University Mission
The mission of WSU is the preservation, advancement, and dissemination of knowledge. Knowledge is preserved through its libraries and collections,
its courses, and the scholarship of its faculty. Knowledge is advanced through research, inquiry, and discussion. Knowledge is disseminated through
the classroom and the laboratory, scholarly exchanges, creative practice, international education, and public service. WSU is committed to maintaining
environments of objective and imaginative inquiry, and original scholarship and research to ensure the production of new knowledge in the free exchange
of facts, theories, and ideas. WSU fosters an environment for students to develop independent judgment and an appreciation of the range and diversity
of human achievement. We cultivate students critical thinking and effective articulation. We seek broad representation and encourage sustained
participation in the community by its students, faculty, and staff..
Top Priorities
Improve student learning experience.
Promote cross-campus collaboration.
Attract and retain a diverse group of faculty, staff, and students.
Continue to expand revenue-generating programs.
Create modern facilities to support education and research.
ANNUAL
STUDENT TOTAL ANNUAL INSTRUCTIONAL BUDGET PER NUMBER OF STUDENTS PER AVG. FACULTY
POPULATION BUDGET BUDGET STUDENT FACULTY FACULTY* START SALARY**.
Table 8: Annual Tuition Rates, Housing Costs, and Rates of Increase Over a Five-Year Period
NSU 38% 33% 29% -23.7% NSU 26% 30% 36% 27.8%
SSU 39% 33% 29% -25.6% SSU 30% 31% 31% 3.2%
ESU 38% 33% 29% -23.7% ESU 29% 28% 28% -3.6%
WSU 22% 18% 14% -36.4% WSU 22% 19% 18% -22.2%
Auxiliary* Scholarships
NSU 18% 19% 18% 0.0% NSU 2% 5% 7% 71.4%
SSU 13% 12% 12% -7.7% SSU 10% 9% 8% -25.0%
ESU 14% 14% 14% 0.0% ESU 4% 5% 5% 20.0%
WSU 13% 11% 9% -30.8% WSU 3% 3% 3% 0.0%
Grants Administration and Physical Operations Costs
NSU 14% 14% 15% 7.1% NSU 20% 20% 18% -11.1%
SSU 21% 23% 24% 14.3% SSU 18% 19% 19% 5.3%
ESU 26% 25% 25% -3.8% ESU 14% 14% 15% 6.7%
WSU 39% 41% 42% 7.7% WSU 15% 15% 14% -7.1%
Gifts and Investments Research and Public Service
NSU 2% 2% 2% 0.0% NSU 1% 1% 1% 0.0%
SSU 3% 4% 5% 66.7% SSU 3% 3% 3% 0.0%
ESU 9% 12% 13% 44.4% ESU 31% 28% 27% -14.8%
WSU 13% 16% 20% 53.8% WSU 30% 30% 31% 3.2%
* Auxiliary includes housing, dining, bookstore, parking, and other fee-based services. Auxiliary includes housing, dining, bookstore, parking, and other fee-based services.
Academic support includes library and technology services. Student services includes
nonfee student services including recreation centers and club support.
* In-field employment is the number of graduates who obtain employment in a degree-related field within six months of graduation divided by the total number of graduates.
** Salary is the mean starting salary for graduates with employment in a degree-related field within six months of graduation.
*** ESU and WSU have masters in accounting programs; NSU and SSU do not. Placement and starting salary figures for ESU and WSU include both undergraduates and masters students.
**** T he Economics departments at ESU and WSU are in the Colleges of Arts and Sciences rather than the Colleges of Business. Placement and salary figures are estimates based on the best
available resources.
ENDNOTES
ABOUT IMA
IMA, the association of accountants and financial professionals
Robert S. Kaplan and David P. Norton, Transforming
1
in business, is one of the largest and most respected associations
the Balanced Scorecard from Performance Measurement
focused exclusively on advancing the management accounting
to Strategic Management: Part I, Accounting Horizons,
profession. Globally, IMA supports the profession through
March 2001, pp. 87-104; and Robert S. Kaplan and David
research, the CMA (Certified Management Accountant)
P. Norton, Transforming the Balanced Scorecard from program, continuing education, networking, and advocacy of the
Performance Measurement to Strategic Management: Part highest ethical business practices. IMA has a global network of
II, Accounting Horizons, June 2001, pp. 147-160. more than 80,000 members in 140 countries and 300 professional
Christopher D. Ittner and David F. Larker, Coming Up
2 and student chapters. Headquartered in Montvale, N.J., USA,
Short on Nonfinancial Measurement, Harvard Business IMA provides localized services through its four global regions:
The Americas, Asia/Pacific, Europe, and Middle East/Africa.
Review, November 2003, pp. 88-95; and Robert S. Kaplan
For more information about IMA, please visit www.imanet.org.
and David P. Norton, Having Trouble with Your Strategy?
Then Map It, Harvard Business Review, September 2000,
pp 167-176.
Watch the video at www.youtube.com/
3
watch?v=oNy8kupW8oI.