HIGH NORTH CENTER FOR BUSINESS AND GOVERNANCE 1 Anatoli Bourmistrov, PhD Professor Bodø Graduate School of Business High North Center for Business University of Nordland / Moscow May 21 st, 2012 Experience in establishing and running international education programs

HIGH NORTH CENTER FOR BUSINESS AND GOVERNANCE INTRODUCITON OPPORTUNITUES OF INTERNATIONAL COOPERATION IN EDUCATION QULIATY IN EDUCATION: NORWEGIAN EXPERIENCE INTERNATIONAL COOPERATION IN JOINT PROGRAMS AND JOINT DEGREES

HIGH NORTH CENTER FOR BUSINESS AND GOVERNANCE 3 UNIVERSITY OF NORDLAND: THE YONGEST UNIVERSITY IN NORWAY! Four schools: – Bodø Graduate School of Business – Faculty of Aquaculture and Bioscience – School of Professional Studies – Faculty of Social Sciences Students: 6500 Faculty: 600

HIGH NORTH CENTER FOR BUSINESS AND GOVERNANCE 4 North-Western University Alliance Alliances in Russia and Ukraine University of NordlandMurmansk State Technical University (MSTU) NArFU Ukhta State Technical University (USTU) Baltic State Technical University, St. Petersburg (BSTU) Tyumen State University (TSU) MGIMO-University, Moscow Tavria National University, Simferopol, Ukraine (TNU) Kiev National University, Ukraine (KNU)

HIGH NORTH CENTER FOR BUSINESS AND GOVERNANCE 5 High North Center: Alliance in North America University of Alaska, Fairbanks Alaska Pacific University, Anchorage University of Alberta, Edmonton University of Texas at Austin

Period 1: West meets East and East meets West BSTU, HHB 2009 Period 2: Courses, student exchange and research cooperation students in Russia - 30 Russian students in Bodø - 30 Bodø students to Russia - 30 research publications BSTU, HHB Period 3: Combining Business Administration and Engineering students in Russia - 1 Russian PhD student in Bodø - 30 Russian students in Bodø - 40 Bodø students to Russia - 90 research publications - new partners in Russia retrained officers BSTU, MSTU, HHB Result/Effects Period 4: Building the University Alliance students in Russia - 90 Russian students to Bodø - 20 Bodø students to Russia - 3 Russian PhD students research publications - new partners in Russia retrained officers BSTU, MSTU, ASTU, HHB Period 5: Joint degree programs - international PhD, Energy Management, Sustainable Management students in Russia students to Bodø - 70 Bodø students to Russia - 15 PhD students research publications - new partners in Russia -500 retrained officers (Russia) retrained officers (Ukraine) Russia: BSTU, MSTU, ASTU, MGIMO, USTU, TSU, Ukraine: TNU North-America: UofA, UofT HHB Establishment of the High North Center at HHB (many partners) Period 6: Education and Research Consortium: Management, Energy, Sustainability Norwegian-Russian Projects in Business and Management

7 Cooperation 1991 – 2011 Some Highlights and Results (1)  International PhD program in Business Studies  5 joint Master programs with Russian Universities: MBAE (St. Petersburg) Executive MBA (St. Petersburg/NArFU) Executive MBA for Rosneft (Russia and Norway) Joint Degree MSc Energy Management (Bodø and Moscow) Joint Degree MSc Sustainable Management (Bodø, St. Petersburg + Murmansk, Arkhangelsk, Tymen, Ukhta)  MBA: Business in Russia (together with NUPI and MGIMO)  Retraining military officers and their family members  “Business Practice in Norway”  Norwegian-Russian Education and Research Consortium for International Business Development in the Energy Sector (NAREC) HIGH NORTH CENTER FOR BUSINESS AND GOVERNANCE

8 Cooperation 1991 – 2011 Some Highlights and Results (2) Students/Graduates: – 3500 graduates at the joint educational programs in Norway and Russia – 15 PhD-students at a joint PhD- program Research: – More than 800 different publications with the focus on business administration in Russia and business cooperation between Norway and Russia Institutional Development: – Establishing High North Center for Business and Governance – Main founders: DNB Nor, Innovation Norway, Nordland County, Statoil, MGIMO university, Rosneft, regional companies in the Salten region – Mainly externally financed projects HIGH NORTH CENTER FOR BUSINESS AND GOVERNANCE

OPPORTUNITUES AND CHALLENGES FOR INTERNATIONAL COOPERATION IN EDUCATION

10 FORCES FOR INTERNATIONAL COOPERATION NATIONAL CULTURES, NEEDS, OPPORTUNITIES LOCALISM INTERNATIONAL CONTEXT: HARMONIZATION INTERNATIONAL PARTNERSHIP COOPERATION TWO FORCES : NATIONAL FACTORS INTERNATIONAL CONTEXT

HIGH NORTH CENTER FOR BUSINESS AND GOVERNANCE 11 Components of International Cooperation in Education The Agreement component: – How to secure that partner institutions, teachers and students are committed to the cooperative education program? – How to secure that the cooperative program development will be a managerial priority at institutions? The Designing component: – How to handle different national requirements in designing the course/program content, what learning methods to use, how to measure students achievements and workload? The ECTS component: – How to harmonize the workload of students and teachers in the cooperative programs where the cooperative partners experience in education was derived from different systems? The Quality component: – How to develop effective communication between partners and achieve common acceptable solutions? – How to guarantee long-term survival of the program? – How to include research in the program? – How to achieve relevance for students and their future employers?

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MANAGING QULIATY IN EDUCATION: NORWEGIAN EXPERIENCE

Education Quality Reform in Norway (1) Ideology: “independence with responsibility”! – Mjøs committee evaluation in 1998 – A need for reform - to reflect a rapidly changing needs of the society: New institutional structure More independent institutions Degree structure: Bachelor/Master/PhD Quality and efficiency in the learning Changing funding of educational institutions: towards pay for performance system – Much of these steps are in accordance with Bologna declaration!

A new law on the Universities and Colleges Act (2001): – regulates state-owned institutions and their right to establish programs and award national degrees – regulates the quality assurance of higher education The reform process : – changed the degree structure in accordance with the recommendations of the Bologna Declaration – increased institutional autonomy in deciding what programs to establish – increased budgetary incentives related to the candidate production – imposed a stricter obligation for institutions to follow up students actively – introduced a system of formal accreditation for all higher education – imposed stricter demands in the field of quality assurance Introduction “pay for performance” system from the state – Basic, education and r esearch components of university funding Education Quality Reform in Norway (2)

New regulation meant: – Universities and colleges shall have internal systems for quality assurance of course provisions – A special independent body (NOKUT) will have responsibility for evaluating the institutions’ own systems in accordance with requirements laid down in the regulations issued by the Ministry of Education and Research – An institution’s quality assurance systems shall be evaluated at least once every six years – The evaluations shall include “the structure of the system, the documentation it produces and the assessments of educational quality made by the institution itself” – The evaluations will be made by committees consisting of external experts appointed by NOKUT – Sanctions: in case of negative evaluation - losing the right to establish further course provisions until the requirements regarding internal quality assurance are satisfied Education Quality Reform in Norway (3)

The Norwegian Agency for Quality Assurance in Education, (NOKUT): – Established by the Norwegian Parliament in 2002 – An independent government body: the Ministry cannot issue injunctions outside the lawful mandate or specified regulations – Evaluation, accreditation and recognition of quality systems, institutions and course provisions – Individual applications for general recognition of foreign qualifications Education Quality Reform in Norway (4)

DEGREE STRUCTURE

Managing Quality in Theory

QUALITY MANAGEMENT AT HHB (1) Goals of the Master program: – Study relevance for students and future employees Focus on the study model, subjects and teaching methods – Appropriate balance between knowledge “depth” and “breadth” Number, size and content of courses – Balance between “research-based” and “practice-based” teaching/learning Literature, teaching methods, etc. – International understanding All main literature in English, guest lectures by English speaking professors, etc.

WHO IS A MASTER PROGRAM GRADUATE? KnowledgeTheoryPractice Depth- dimension ”Researcher” ”Expert” Breadth- dimension ”Philosopher” ”Universal practitioner” Master program?

Basic management ideas in ISO 9000/14000

QUALITY MANAGEMENT AT HHB (2)  Quality assurance system dimensions: “Input” quality “Infrastructure” quality “Program” quality “Result” quality

QUALITY MANAGEMENT AT HHB (3)  Quality work: Variance reporting on the Internet (“red-button”) Process evaluation  Each course should have a student who functions as a quality work coordinator  Each program has a program coordinator responsible for its quality  Responsibilities: A “bridge” between the class and professors Continuous evaluation of the course Constructive suggestions for improvement a the course level  Participation at the quality seminar - constructive suggestions for improvement a the course level Quality survey  Each students should make an evaluation at the end of the semester in each course by filling special forms

QUALITY MANAGEMENT AT HHB (4)  Input quality: Introductory courses (e.g. working with cases) Teachers’ qualification improvement, courses for staff (e.g. in teaching methods, use of program)  Infrastructure quality: Focus on solving technical problems because of the new buildings Lack of rooms for self-study  Program quality: Establishment of the reference groups (representatives from business) Review of programs  Result quality Completion rate at master program – 91% 90% finds jobs right after the completion on the study Annual surveys of graduates/active alumni club

JOINT PROGRAMS AND DEGREES

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28 Differences in National Cultures National cultures Hofstede (1980 – 2004) CountryPDIUAIIDVMAS US Norway Ukraine Russia90/ 93 90/ 95 50/ 39 40/ 36 PDI – power distance (acceptance of power inequality) UAI – uncertainty avoidance (feeling of threat by uncertainty) IND – individualism (vs. collectivism; I vs. WE consciousness) MAS – masculinity (vs. femininity; work and quality of life) HIGH NORTH CENTER

HIGH NORTH CENTER FOR BUSINESS AND GOVERNANCE 29 EXPERIENCES, CHALLENGES AND SOLUTIONS EDUCATION AND INTERNATIONAL QUALITY: – Input quality: enrollment – Process quality: learning and teaching – Output quality: obtaining knowledge and employment COOPERATION IN EDUCATION – IMPORTANT ISSUES: – Issue 1: HOW TO SECURE “INPUT” QUALITY OF INTERNATIONAL STUDENTS? – Issue 2: HOW SHOULD INTERNATIONAL STUDENTS BE INTEGRATED AND ADAPTED INTO THE EDUCATION PROCESS? – Issue 3: SHOULD EDUCATIONAL INSTITUTIONS CARE ABOUT EMPLOYMENT OF INTERNATIONAL STUDENTS?

HIGH NORTH CENTER FOR BUSINESS AND GOVERNANCE 30 CHALLENGES What do the grades in the transcript of an international student reflect? – Differences in: Professional tradition in education and research Education styles Regulatory institutions in education Focus of the program curriculum An illustration: Norway vs. Russia

HIGH NORTH CENTER FOR BUSINESS AND GOVERNANCE 31 Differences in regulatory environment of the education institutions RUSSIANORWAY Quality standard- setters in education Central Ministry of Higher Education and Research and its agencies National and international committees and organizations: e.g. NOKUT Autonomy of educational institutions Compliance to the national, regional and local education standards Autonomy in filling in the education programs How relevance of the program is defined? Relevance as following the standards Relevance to the business community and students Program management Management by standard- following Management by reputation HIGH NORTH CENTER FOR BUSINESS AND GOVERNANCE

32 Differences in education styles RUSSIANORWAY Lectures as a “cornerstone” of teachingTextbooks are the main teaching instruments Dictation of lecturesTextbooks’ review and their discussion The literature is of ritual characterThe course literature is compulsory for study Almost no conversations between teachers and students out of school hours Teachers have time for students; often outside of normal office hours Clear distinction between lectures and seminars As a rule, no clear distinctions between lecture and seminars; flexibility when choosing different teaching forms Oral exams based on the dictated lecturesAlmost all exams are written Textbooks are for the teacherTextbooks are for the student Students do not purchase books. It is expected that the university is responsible for providing them Students purchase books at their own expense Hierarchical relation “teacher - student” Students and their organizations are important and part of the education process

HIGH NORTH CENTER FOR BUSINESS AND GOVERNANCE 33 Differences in the program curriculum focus RUSSIANORWAY Many obligatory courses like mathematic, philosophy, history, etc. required by the standards Number and scope of courses, also obligatory, are defined based on the program content Focus on student individualismFocus on the team-work 8 – 10 subjects pr. semester2 – 4 subjects pr. semester Up to 2000 class hours for a 2 year program Up to 400 class hours for a 2 year program

HIGH NORTH CENTER FOR BUSINESS AND GOVERNANCE 34 Differences in the professional tradition in education and research: example of accounting Norwegian accounting traditionRussian accounting tradition Paradigm: Accounting user orientedParadigm: Accounting rules oriented Teaching focus: accounting principlesTeaching focus: accounting technique Course literature: book of accounting theory Course literature: accounting standards The goal of the course: understanding of details as a part of the superior theory The goal of the course: replication of the bookkeeping transactions

HIGH NORTH CENTER FOR BUSINESS AND GOVERNANCE 35 RUSSIANORWAY Quality focus The country: development of the economic and defense potential The student, research community and the society in general Quality control Primary focus: output control Input control is important too. Primary focus: input and process control. Output control is important too. Quality standard- setters Central Ministry of EducationNational and international committees and organizations Comparison of quality understanding of the Ph.D. programs in Norway and Russia

The Development Process of Joint Degrees ACADEMIC MODEL REQUIRED LEARNING TIME TEACHER WORKLOAD LEARNING METHOD ECTS CALCULATIONS STUDENT WORKLOAD Russian context Norwegian context

HIGH NORTH CENTER FOR BUSINESS AND GOVERNANCE 37 1st semester 30 ECTS HHB 2nd semester 30 ECTS HHB 3rd semester 30 ECTS MOSCOW 4th semester 30 ECTS HHB Business Analysis 10 ECTS Russian/ Norwegian L & C 5 ECTS Energy Diplomacy and Economy of Fuel and Energy Complex 30 ECTS Master Thesis 30 ECTS Energy Management – a Norwegian Pespectives 5 ECTS Economics 10 ECTS The Geopolitics of Petroleum and Natural Gas 10 ECTS Philosophy, Ethics and the Environment 10 ECTS Research Methods 10 ECTS Master of Science in Energy Management The Study Model

HIGH NORTH CENTER FOR BUSINESS AND GOVERNANCE Master of Science in Sustainable Management YEAR 1YEAR 2 FALLSPRING (BODØ) FALL (St. Petersburg) SPRING Business Analysis 10 ECTS Research Method 10 ECTS Specialization at Russian/ Ukrainian Universities 30 ECTS MASTER THESIS Economics 10 ECTS Sustainable Management 5 ECTS Ecological Economics 5 ECTS Philosophy, Environment and Ethics 10 ECTS Accountability and Responsibility 5 ECTS Norwegian/ Russian Language and Culture 5 ECTS The Study Model

Courses in Russia (TOTAL 30 ECTS) – Subjects of adjustments from year to year – August in St. Petersburg at BSTU 5 ECTS, “Russian history, society and culture” Start: beginning of August MGIMO - 25 ECTS Energy Management (1st of September – middle of December) oEconomies of countries and regions with fuel and energy sectors (3 ECTS) oEconomic situation and market forecast in the fuel and energy sectors (3 ECTS) oFinancial Management in the fuel and energy sectors (4 ECTS) oSecurities and stock exchange business in the fuel and energy sectors (4 ECTS) oEnergy diplomacy and energy security (2 ECTS) oEnergy companies’ external economic activities (2 ECTS) oRisk-management in international practices (2 ECTS) oJoint-ventures and off-shore zones in the energy sector (4 ECTS) oInvestment decision-making in the oil and gas business (2 ECTS) oStrategic management in energy companies (2 ECTS) oImageology of energy companies (2 ECTS) BSTU - 25 ECTS Sustainable Management (1st of September – middle of December) oEcological framework and management systems: international and Russian experience (5 ECTS) oManagement in Situation of Crisis (5 ECTS) oTechnical and engineering decisions and sustainable management (5 ECTS) oPerspectives on Business Sustainability (5 ECTS) oBusiness practices in Russia (5 ECTS)

HIGH NORTH CENTER FOR BUSINESS AND GOVERNANCE 40 Executive MBA program for OC “Rosneft” Tailor made program: – 19 top managers ( ) – 23 top managers ( ) – 22 top managers (2009 – 2011) – New Program from May 2012 – Focus: Strategic energy management in the oil and gas business 8-12 sessions/modules, e.g. – Strategic management – Innovation and technology management – Energy diplomacy and energy safety – Corporate ethics, energy policy and ecological regulation – Management practices at energy enterprises in Norway – Handling large projects in oil and gas industries 2 modules in Norway (Oslo/Stavanger and Bodø/Hammerfest) Network building

HIGH NORTH CENTER FOR BUSINESS AND GOVERNANCE Lessons learned: 10 commandments I.ECTS is not “a simple calculus” but “a tool for quality assurance” II.ECTS is challenging the existing education practices III.ECTS sets better focus on combining education and research IV.ECTS - anchoring the project at the appropriate level V.ECTS should help in internationalization of universities VI.ECTS is reinforcing bilateral and multilateral strategic international cooperation VII.ECTS is not aim at reducing cultural differences VIII.ECTS - a need for “standard packages” IX.ECTS represents unique opportunity for combination of strengths in education programs X.ECTS requires a long-term thinking 41

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The aim of NAREC is to: - Strengthen cooperation and unite leading academic institutions in Norway and Russia within the energy sector - Strengthen cooperation between academic institutions and enterprises in the energy sector in Norway and Russia - Develop new knowledge through education and research in close cooperation with enterprises and authorities - Stimulate industrial cooperation between and within both countries Partner Institutions in Russia: - BSTU - Gubkin Russian State University of Oil and Gas - MGIMO - MSTU - NArFU - TSU - USTU Partner Institutions in Norway: - Akvapln-Niva - Econ Pöyry - NUC - NUPI - UiN - UiS - UiT/BAI