AACSB International Accreditation: An Overview Eileen Peacock Vice President AACSB Intl- Asia AACSB International May 2010

The AACSB Mission To advance quality management education worldwide through accreditation and thought leadership.

AACSB’s Current Activities Award winning BizEd magazine (6 times per year) BestBizSchools.com (searchable student web site focused on AACSB accredited institutions) Asia office opened in June 2009 to serve the this important region (5,000+ business schools) Launched Asia version of Business School Questionnaire this year

AACSB’s Current Activities Cont’d Completing plan for activities related to doctoral faculty development worldwide Member survey completed to provide guidance and feedback for future activities Held 8 professional development programs in Asia Asia Task Force appointed to provide perspectives on how AACSB can better serve business schools in the region

AACSB’s Current Activities Cont’d Launched in 2009 “AACSB Exchange,” our social network through our “Members’ Only” portal Launching a “Best Practices” searchable database through DataDirect Supports largest database on business schools in the world via DataDirect Issued report on “Business Schools and Innovation” in April 2010

AACSB’s Current Activities Cont’d Report on globalization of business education to be issued later in 2010 Annually deliver 11 conferences and 42 seminars internationally In 2009, launched a webinar series on accreditation topics to be expanded in 2010-11

AACSB’s Network An international network of 1229 members in 76 countries/territories 593 AACSB accredited institutions in 37 countries; accounting accreditation held by 173 institutions in 4 countries 190 institutions are formally seeking AACSB accreditation Over 400 volunteers annually assist AACSB in its peer review activities

The World of Management Education Region AACSB Members AACSB Accredited In AACSB Accred. Process Estimated Schools w/ Business Programs Africa 13 1 756 Asia 172 36 45 5,954 Europe 193 46 52 1,968 Latin America & Caribbean 58 10 11 1,970 Northern America 699 490 69 1,725 Oceania 33 12 99 Totals 1,168 593 190 12,472 Source: AACSB analysis, as of April 6, 2010 8

Global Accreditation Landscape Of approximately 12,000 institutions granting business degrees worldwide… ≈10% (1200+) are accredited by an organization operating on an international scale ≈6% have AACSB International, EQUIS and/or AMBA accreditation Source: AACSB analysis of publicly available data as of January 1, 2010.

Global Accreditation Total = 713 AACSB (570) EQUIS (122) AMBA (160) 30 (4.2%) 20 (2.8%) 503(70.4%) 42 (5.9%) 30 (4.2%) 5 (.7%) Use this not only to finish pointing out that accredited schools make up only a fraction of the total number of institutions awarding business degrees, but also to point out that on the other side, our increasing size relative to other global accreditation has led the Board to begin thinking about ways to increase value amongst existing accredited schools. Discuss importance of the work of the special committee in this context. (Transition to next section of slides) With the remaining slides, we’ll talk about other areas in which the future of management education is being shaped, and discuss some of the ways that AACSB – through its governance structure, committees, task forces, special interest groups, professional development, publications, etc. (all of which are comprised of/contributed to by members) – is helping to shape that future. 80 (11.6%) AMBA (160) Source: AACSB analysis of publicly available data as of January 1, 2010.

AACSB Accreditation Assures a Business School Program Manages resources consistent with a clearly stated mission Advances knowledge through faculty scholarship Provides quality teaching and current, globally relevant curricula Cultivates meaningful interaction between students and a qualified faculty Produces graduates who have achieved specified learning goals Makes a statement to external communities about your commitment to quality and continuous improvement Three categories of characteristics of quality in higher education Schools that achieve quality in these three areas are accreditable.

Important Stakeholders that Benefit From AACSB Accreditation Students Employers Deans and Faculty Partners

The Value Proposition: Students and Employers AACSB accreditation provides quality assurance and distinction AACSB accreditation may allow students and employers to narrow their set of schools AACSB’s focus on excellence ensures high quality academic programs

The Value Proposition: Deans and Faculty AACSB accreditation is important to employers and students AACSB accreditation supports excellence AACSB accreditation validates the high standards the business school imposes on itself Internal and external benefits are significant

The Value Proposition: Partners AACSB accreditation provides quality assurance to other partners Provides a basis for incorporating quality assurance into agreements Enhances attractiveness of partners that hold AACSB accreditation

AACSB Member Benefits BizEd magazine – complimentary subscriptions Online Resource Centers Affinity Groups—connect with colleagues with similar interest DataDirect – members only access to subscriptions and custom reports Thought Leadership Reports Conferences and Seminars – members only discounts eNEWSLINE Sponsorship/Exhibit Opportunities ME Jobs – special member rates Online Member Directory Accreditation Resources

ACCREDITATION STANDARDS- AACSB INTERNATIONAL ACCREDITATION STANDARDS- AN OVERVIEW

AACSB International Standards- Eligibility Criteria Authority to grant degrees (undergraduate, masters, and/or doctorates) Continuing financial resources Scope of accreditation Diversity in perspectives and participants Expectations for ethical behavior Programs have produced graduates for at least two years

Assurance of Learning Participants STRATEGIC MANAGEMENT Staff &Sufficiency & Student Support Faculty Sufficiency & Qualifications Faculty Mgmt & Support Student Admission & Retention Aggregate Faculty & Staff Educational Responsibility Individual Faculty & Student Educational Responsibility Participants Mission Statement Mission Appropriateness STRATEGIC MANAGEMENT Continuous Improvement Objectives Student Mission Financial Strategies Educational Level Learning Goals Management of Curricula Assurance of Learning

AACSB Standards-Business Strategic Management (5 standards) Participants (9 standards) Assurance of Learning (7 standards)

AACSB International Strategic Management Standards-Business 1 – Mission statement reflecting input of key stakeholders including faculty, employers, alumni, etc. 2 – Mission appropriateness and commitment to advance knowledge in management education 3 – Student mission 4 – Continuous improvement objectives 5 – Financial strategies

Accreditation Philosophy-Strategic Management AACSB accreditation satisfies a moral dimension of management education through Strategic Management standards that focus on: A well articulated mission; Effective use of resources to achieve the mission; Constant focus on continuous quality improvement; and Advancement of knowledge in management/accounting Recognized importance of stakeholder input including employers, alumni, etc.

AACSB International Participant Standards-Business 6 – Student admissions consistent with mission 7 – Student retention policies consistent with mission 8 – Staff sufficiency-student support consistent with mission 9 – Faculty sufficiency and student/faculty interaction principles (participating and supporting faculty) 10- Faculty Qualifications (academically and professionally qualified) 11 –Faculty management and support 12 –Aggregate faculty and staff educational responsibilities 13 –Individual faculty educational responsibilities 14 –Student educational responsibilities

Philosophy of AACSB International Accreditation AACSB accreditation ensures the quality of the educational dimension of business schools through Participant Standards that: Require appropriate actions and interactions between faculty, students, administrators, and staff; Insure use of sufficient, qualified, and engaged faculty resources; and Expect active student involvement and appropriate student recruitment policies and support systems

AACSB International Assurance of Learning Standards-Business 15 – Management of curricula with focus on continuous improvement-provides general curricula content guidelines. Expects participation of stakeholders in setting goals 16 – Undergraduate learning goals 17 – Undergraduate educational level 18 – Masters level general educational learning goals 19 – Specialized masters degree learning goals 20 – Masters educational level 21 – Doctoral learning goals

Philosophy of AACSB International Accreditation AACSB accreditation ensures the accountability dimension of management education through Assurance of Learning standards that: Insure delivery of effectively managed curricula consistent with the stated mission; Insure program intentions defined by learning goals; and Insure learning achievement as demonstrated by direct assessment of learning

The Accreditation Process: A Three Phase System-Business and Accounting

Establish eligibility, early stage readiness, alignment plan Pre-Accred Phase Establish eligibility, early stage readiness, alignment plan Feedback provided by Pre-Accreditation Committee and mentor 1 year allowed to develop alignment plan Rolling admission Initial Accred School documents readiness for initial accreditation Feedback from Initial Accreditation Committee and mentor 3 years allowed to implement plan, pace is up to school 1-2 years allowed for self-evaluation report and review Maintenance Review occurs every five years with revised documents Must document continuous improvement Standards alignment expected Strong focus on consultative feedback and continuous improvement

Pre- and Initial Accreditation Process Membership Complete Eligibility criteria form (rolling admission) Enter Pre-accreditation process and mentor assigned Develop Alignment plan Pre Accreditation Committee approves alignment plan Scope of review approved Initial Accreditation Committee (IAC) approves the plan School Implements the plan Enter Accreditation process - peer review team assigned SER Visit

2010-2011 Accreditation Fees Effective July 1, 2010   Fees from Pre-Accreditation Eligibility Application through the Initial Accreditation Review:     Establish Eligibility Criteria 1,000 USD Pre-Accreditation Fee – Business or Accounting1 4,500 USD Initial Business Accreditation Application Fee2 12,000 USD [1] Includes current fiscal year Pre-Accreditation fee [2] Due following the submission of the Initial Accreditation application

Why AACSB Accreditation?? Why not? – recognised worldwide strives for quality incentive to change for the better makes one ask questions of one’s self – introspective process demonstrates to the world that a group of peers has said “you are good at what you do” 31

QUESTIONS AND DISCUSSION

Discussion