2007 IACBE Annual Conference Robert H. Roller, Ph.D. President, IACBE

2007 IACBE Annual ConferenceRobert H. Roller, Ph.D.

President, IACBE

In most institutions (and business schools), there is little integration of strategic planning, budgeting, and outcomes assessment

In most cases, there are separate plans that are generated by poorly-integrated processes

4/13/2007 22007 IACBE Annual Conference

A fully-integrated process for strategic planning, budgeting, and outcomes assessment


In an earlier study (Roller, Bovee, Andrews, & Walenciak, 2002), large gaps were found:◦ “The institution provides adequate resources

to the business unit to accomplish its mission and broad-based goals”

◦ The business unit has a strategic plan that is in touch with the realities of business education and the marketplace”


Another study (Bovee, Roller, & Andrews, 2001) found significant frustration caused by insufficient resources and funding, including inadequate budgeting systems.

Frustrations also found with the strategic direction of the institution or that imposed on the business school.


Differing perspectives of the market Differing understandings of the external

and internal environments Different amounts of information available

on which to base planning Differing goals and assumptions Poor coordination of strategic plans for

institution and business school


Among other things…◦ Not adequately informed by assessment efforts (not

grounded in good data & research)◦ Poor execution (lack of accountability)◦ Not adequately supported and resourced


Rather than the outcomes assessment plan being developed through a separate process from the strategic plan, it should follow directly from the business unit’s strategic plan

The business unit’s strategic plan should be consistent with the strategic plan of the institution


In an earlier study (Roller, et al.,2002):◦ “The institution provides adequate resources to

the business unit to accomplish its mission and broad-based goals” Identified as the 8th most important characteristic to

excellence in business education (out of 37) Ranked 34th in perceived degree of accomplishment Largest perceived gap in the survey


In another study (Bovee, et al.,2001):◦ Insufficiency in resources and funding identified

by business deans as their greater frustration. Resource allocation Inadequate budget systems/processes

◦ Difficulty in attracting and retaining faculty ranked 2nd

◦ Eight of the top eleven perceived administrative challenges were resource related (staffing, compensation, research support, technology investment, etc.)


For strategic planning to be effective, budgeting must be integrated at both the institutional and unit levels.

Characteristics of an effective budgeting process:◦ Identifies the cost of proposed action plans◦ Supported by data from planning process◦ Informed by departmental strategic priorities◦ Informed by institutional priorities and constraints◦ Generates results that are assessed and inform

future planning


Strategic planning, budgeting, and outcomes assessment should not be three separate processes.

What is needed is a process for strategic planning, outcomes assessment, and budgeting that is integrated, both within itself and among subunits of the organization.


ENVIRONMENTAL SCANNING

ExternalSTEP5-ForcesO&T

InternalResults of Operational AssessmentResults of Student Learning AssessmentVRIOS&W

STRATEGY FORMULATION

AssumptionsMissionCompetitive PositioningGoalsObjectives/Intended OutcomesStrategies

STRATEGYIMPLEMENTATIO

N

Action PlansBudget development and implementationPoliciesProcedures

STRATEGY EVALUATION AND

CONTROL

Operational Assessment Accomplishment of goals and objectivesbudget evaluationemployee performance evaluation

Student Learning Assessment


Any strategic plan must be rooted in realities, both internal and external◦ External

STEP Analysis 5-Forces Analysis Opportunities and Threats

◦ Internal VRIO Results of operational assessment and student

learning assessment Strengths & Weaknesses


Everything in a strategic plan follows from the mission statement◦ Institutional mission is developed by faculty and

administration and approved by the governing board

◦ School of business mission developed by business faculty and approved by administration

Mission statement should be well-crafted, timely, and relevant


Goals should flow directly from the mission and/or vision statements

Goals are broad statements of intent◦ May remain relatively stable over time◦ Do not have to be quantified

Ask: What are we trying to accomplish?


Operational Goals◦ Ensure that the school’s programs are

appropriately staffed to accomplish its mission Student Learning Goals

◦ Graduates will be prepared for entry into business, management, or leadership positions in for-profit, nonprofit, governmental, and ministry-related organizations, or to pursue graduate studies in business or a related field.


Objectives flow directly from the goals Objectives must be

◦ Quantifiable◦ Measurable◦ Have a time horizon


Operational Objective◦ “Add one full-time faculty member beginning in

the 2007-08 academic year, in keeping with the university’s strategic plan. ”

Student Learning Objective◦ “At least 80 percent of each year’s graduates

will be employed in positions in for-profit, nonprofit, governmental, and ministry-related organizations, or will have been accepted into graduate school, within two years of graduation.”


Ask: What general course of action will make it possible to accomplish a goal?

Objectives = what; Strategies = how


Operational Strategy◦ Convince the administration that it is in the

best interests of the institution to approve a full-time female faculty member in marketing and/or management

Student Learning Strategy◦ Promote the hiring of students and graduates

using available networks and relationships


For each strategy, there needs to be an action plan which details the steps needed to implement the strategy, the person(s) responsible, the time schedule, and the budgetary ramifications

In many cases, new policies and procedures will also be necessary to implement the strategy.


Strategy LA5.1: Convince the administration to approve a full-time female faculty member in marketing and/or management

Action Plan Person(s) with Primary

Responsibility

Required Support/Appr

oval

Deadline Relevant Costs

Discuss staffing plan with Provost

Dean Provost/VPAA 9-30-2006 NA

Request additional faculty member for 2007-08 academic year

Dean Provost/VPAA 10-31-2006

Approx. $65,000

Implement search/hiring process

Provost/VPAA Dean Human

Resources

January 2007

$6500


Strategy SL2: Using available networks and relationships, promote the hiring of students and graduates.

Action Plan Person(s) with Primary

Responsibility

Required Support/Approval

Deadline RelevantCosts

Work with Career Center to place graduates

Dean Business faculty Ongoing NA

Secure internships for students

Dean Business faculty Ongoing $200 (business lunches)


Regional and specialized accrediting bodies require colleges and universities to measure their effectiveness as an integral part of the accreditation process.

The purpose of outcomes assessment is to review the results of an institution’s operations (both academic and nonacademic) and determine if the objectives were realized.


Outcomes assessment includes examining both the operational results and the student learning results of the functional units in an institution.

The results of assessing and evaluating outcomes should feed back into the strategic planning process in the form of◦ the identification of objectives that have been

accomplished◦ changes and improvements that are needed to

accomplish objectives


In measuring institutional effectiveness, accrediting bodies want to see evidence that:1. The mission and broad-based goals are being

accomplished.2. The objectives (intended outcomes) are being

accomplished.3. Each organizational unit has successfully

implemented its action plans.


Operational Assessment◦ Includes all

organizational units in which there is operational commonality

◦ Includes assessing accomplishment of mission and goals

Student Learning Assessment◦ Includes all

academic units and their academic programs


1. Were the mission and operational goals of the department accomplished?

2. Were the operational action plans of the department achieved?

3. Were departmental budgets properly administered?

4. Was employee performance acceptable?


Goal LA5: Staffing - Ensure that the school’s programs are appropriately staffed to accomplish its mission and goals.

Objective LA5.1: Add one full-time faculty member beginning in the 2007-08 academic year, in keeping with the university’s strategic plan.

Strategy LA5.1: Convince the administration to approve a full-time female faculty member in marketing and/or management.

Outcomes Assessment LA5: The Dean of the School of Business will monitor administrative approval process for new faculty lines.

Results LA5: Initiative in process; approval of new line by October 2006; success would require not only approval but also successful hiring process.


1.Did students learn what they were supposed to learn?General educationProgram of study

2.If students needed remedial assistance, did they receive and benefit from those programs?

3.Did the institution successfully provide for personal development of students?


Goal SL 2: Graduates will be prepared for entry into business, management, or leadership positions in for-profit, nonprofit, governmental, and ministry-related organizations, or to pursue graduate studies in business or a related field.

Objective SL2: At least 80 percent of each year’s graduates will be employed in positions in for-profit, nonprofit, governmental, and ministry-related organizations, or will have been accepted into graduate school, within two years of graduation.

Strategy SL2: Promote the hiring of students and graduates using available networks and relationships.

Outcomes Assessment SL2: The Biennial Alumni Survey provides employment information; the School of Business Alumni Survey is distributed during the Spring semester in alternate years; it surveys the last three graduating classes of business.

Results SL2: 93 percent of the 2005 business graduates were employed or in graduate school within 6 months after graduation.


Assessment involves the collection and analysis of data

Evaluation involves interpreting the data that was collected and analyzed

A successful outcomes assessment process requires collecting, analyzing, and interpreting data—and then using the results to make needed changes and improvements


Student learning objectives (intended outcomes) will generally address the following:

1. Command of a subject or content area2. Ability to perform a certain task3. Ability to exhibit a skill4. Ability to demonstrate a level of mastery

(creativity, analysis, synthesis, etc.)5. Holding a particular value


An outcomes assessment plan should be developed that includes:1.Techniques that will be used to measure

whether the student learning objectives are realized, using both direct and indirect student learning measures.

2.Copies of the instruments to be used in measuring student learning outcomes, along with rubrics to evaluate the results.


PROS Reliability Internal Validity Comparability Acceptability

CONS Cost Inflexibility Validity for your

program Availability


It is not necessary to use standardized assessment instruments. In fact, for most learning goals, none will be available. Although a test created locally may not have the same statistical validity and reliability as a standardized instrument, its relevance to specific learning goals in question may make it a more appropriate and effective instrument.

A “test blueprint” (an outline that matches test items with the learning outcomes they are intended to assess) can be used to construct a test or instrument or to evaluate how well an existing “home-grown” instrument assesses key learning outcomes.

Source: Middle States Commission on Higher Education4/13/2007 372007 IACBE Annual Conference

A rubric is a criterion-based rating scale that can be used to evaluate student performance in almost any area

A rubric contains criteria formed beforehand for various levels of mastery of an assignment.

A rubric delineates what knowledge, content, skills, and behaviors are indicative of various levels of learning or mastery.


The person evaluating student performances uses a rubric as the basis for judging performance.

Ideally, rubrics are available to students prior to their completions of the assignment so that they have clear expectations about the components of the evaluation and what constitute exemplary performance.


Sophistication Organization Grammar and style Competence Accuracy Synthesis Expressiveness


Linking the organization’s strategic plan and departmental strategic plans can be challenging◦ Bottom-up approach◦ Top-down approach: requires a clear

understanding of the organization’s mission and goals

Departments may need to develop goals compatible with institutional initiatives


An opportunity for Deans Leading unit-level planning & assessment

◦ Involving key stakeholders◦ Supporting planning with assessment◦ Defining clear and supportive mission & goals◦ Clarifying strategic priorities & institutional

alignment◦ Informing institutional planning and budgeting◦ Implementing effective performance evaluation

(assessment) measures◦ Grounding budget requests in planning/assessment

results Direct impact and leading by example

◦ Success Credibility Influence


Several strategy-critical processes are typically only indirectly influenced by deans ◦ Resource allocation◦ Organizational structure◦ Faculty evaluation/development◦ Organizational culture

Roller et al. (2002) found the greatest perceived gaps in these areas

Influencing Change◦ Collaboration and consensus◦ Incremental wins◦ Managing upward◦ Asking questions (the obvious may not always be)◦ Specialized accreditation◦ Sharing information


Change readiness:◦ Quality of communication?◦ How are decisions made?◦ Level of trust?◦ Who holds power/influence?◦ How are resources allocated?◦ Who approves academic (program) changes?◦ Union influence?


Planning, budgeting, and assessment◦ Integrated

Into one process Across the institution

◦ Cyclical Payoff

◦ Shared Focus and Direction◦ Efficiency◦ Effectiveness◦ Cooperation/Collaboration◦ Involvement◦ Communication◦ Strategy-driven decision-making

Being part of the solution


The IACBE currently requires its member programs to develop both a strategic plan and an outcomes assessment plan

The IACBE is moving in the direction of assisting its members in developing an integrated plan

During the transition period, will still have to allow for the submission of separate plans

The IACBE has the opportunity to take a leading role in the movement toward integrated processes for strategic planning, budgeting, and outcomes assessment


Documents

2007 IACBE Annual Conference Robert H. Roller, Ph.D. President, IACBE