1. New York University NYU in Paris Best In France Case Study HEC, Autumn 2003 Group ES1.b Murat Dedeoglu Gabriel Gomez-Celaya Justin Oppelaar Alexandre Minaev

2. AGENDA  NYU in Paris – History & Business Model  Students & Services  Why did NYU Come to France?  Merging Institutional Cultures  Benefits and/or Limitations of Being in France (Cultural, Administrative & Financial)  Essential Advice to Newcomers

3. What is NYU in Paris?  NYU opened its Paris campus on the Rue de Passy in 1969  Campus was NYU’s second venture abroad (after Madrid in the late 1950s)  Began with a few dozen students – now accepting 130 for the spring 2004 semester  Overseen directly by the College of Arts & Sciences in New York (along with Madrid; other study-abroad programs run by the central administration)  50/50 mix between NYU students and students from other schools

4. NYU In Paris - Financials  NYU is technically a non-profit entity – in the U.S. and in France  But NYU in Paris is highly profitable – the campus makes between $1.5 and 2 million in profits per semester.  Paris and Madrid are the only profitable abroad programs to date  Other programs – including London, Florence and Prague – weren’t started until the mid 90s  NYU tuition, board & fees (at home and abroad) currently totals $41,106

5. Students & Services  Students study abroad for a summer, semester or full year during their third year of undergraduate study, or in the summer only for post-grad students  Why do they come? – To improve French language skills – To immerse themselves in a foreign culture – For some, to be “on vacation in Paris for four months” – However, NYU keeps the bar high academically – “We gear our activities to students who are here for the right reasons”  What does NYU in Paris Offer? – Intensive language training – Courses in literature, history & arts – Frequent cultural excursions in Paris and across France

6. Why did NYU Come To France?  Original founder, Tom Bishop, was head of the French department at NYU for 35 years – built the Paris campus from the ground up based on personal contacts  Objectives: – to expand the breadth of its offerings to students in New York – To offer a hands-on opportunity to practice the language taught in classes back home – “our two primary goals are language acquisition and cultural immersion”  “We bring our clients a very specific service - they are full-time students of France and of French culture. Everything we do is focused on giving them the best possible experience”

7. Merging Institutional Cultures: Paris vs. New York  Staff of NYU in Paris have had minimal difficulty interfacing with French culture  Staff is split 50/50 between U.S.- and French-born employees; adjunct faculty is 75% French on average  No explicit hiring policies - In general managerial positions are held by expatriates (though the directorship is currently held by a Frenchwoman)  Employment laws are “totally different” – i.e. much more restrictive. But the small office size keeps management - employee relations cordial & minimizes conflict

8. Merging Institutional Cultures: New York vs. Paris  Ironically, the most friction comes in dealing with the “home office” in New York.  Employees say bureaucracy and anonymity is much greater there, because of its size and scope  Cultural ignorance in New York is also a problem: – Ex. NYU’s New York legal office doesn’t understand the requirements of doing business in France – resulting in much unnecessary bureaucratic hassle – French paperwork requirements (permits, visas, etc.) take longer than they should because everything must be approved through New York

9. Benefits & Limitations I  35-Hour Work Week: NYU in Paris has made its work hours more flexible by providing extra vacation days (6-9 weeks) in return for work beyond 35 hours/week  Hiring: NYU hasn’t had big problems finding qualified personnel in France (“we have never had to recruit”) – though hiring expenses can be significant – Ex. hiring at $50,000 salary, expect 40% more for payroll taxes  Salaries: For French employees, pay is competitive with local standards. Expats retain their New York salary and are paid in dollars (not so advantageous right now!)

10. Benefits & Limitations II  Firing: Much more difficult than in the U.S. – If someone is fired in France, it almost inevitably ends in a court trial (La Prudhomme)  “The bottom line is, the employee is always right.”  That said, NYU has had few problems – again because of its small size and personal contact among employees  Cultural Adjustment for Staff: Generally minimal, because professors and staff are already very familiar with French culture and norms – According to one professor: “I am extremely comfortable in both cultures, plus there is a great staff at NYU (Paris) that is very gracious

11. Essential Advice  Be aware of your surroundings – “Things are done differently here. You are in a legal framework that requires a certain level of maintenance.”  Make sure you have the full support AND understanding of the home office  Give managers in France a minimum level of trust and autonomy to do the job as they see fit – “The local staff are more aware of what is going on and what needs to happen to make the business a success”  Be open-minded - and patient – “the rhythm of life here is different. The understanding of time here is not always in the ‘Anglo-Saxon’ way.”

12. A Hearty Thanks To:  Caroline Montel Director, NYU in Paris (caroline.montel@nyu.edu)  Christopher Bouchard Administrative Manager, NYU in Paris (cb53@nyu.edu)  Henriette Goldwyn Professor, NYU in Paris (hg3@nyu.edu)

13. Our Team:  Murat Dedeoglu Murat.Dedeoglu@mailhec.net  Gabriel Gomez Celaya Gabriel.GomezCelaya@mailhec.net  Alexandre Minaev Alexangre.Minaev@mailhec.net  Justin Oppelaar Justin.Oppelaar@mailhec.net