Strategic Planning Partnership

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FSA 25th Annual Meeting Academic
Leadership Turning Vision into Reality A Program
Leaders Guide Michael A. Diamond Michael R.
Moore Ernst Young Foundation
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For a .pdf download michael.moore1_at_home.com F
or a hard copy ellen.glazerman_at_ey.com
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Partnership Schools

• Alabama
• Baylor
• Brigham Young
• California, Irvine
• Case Western Reserve
• Clemson
• Colorado, Denver
• DePaul (Chicago)
• Duke (review)
• Florida (Accounting)
• Hampton
• Lehigh
• Illinois (Accounting)
• Miami (Ohio)

• Michigan State (Accounting)
• Millsaps
• Missouri, Columbia
• Morgan State
• North Carolina Central
• Ohio State (review)
• San Jose State
• Southern California (Accounting)
• Southern
• Syracuse
• Washington
• Washington and Lee
• Wisconsin, Madison (Accounting)

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The Way it Might Have Been

• It has been said that we must wait until the
  evening to see how splendid the day was. I am
  very optimistic that in the Year 2000, at our
  annual meeting in Brussels, accounting educators
  will say how splendid were the 1990s. Lets
  roll up our sleeves and get to work. Herbert
  Hoover is credited with asking in the darkest
  days of his presidency, as he attempted to turn
  the country around, If not us, then who? If not
  now, then when? I ask the same questions of
  every accounting educator.
• Doyle Williams 1991
• Issues in Accounting Education

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The Way it Is
If we were creating a new business school
today, we would not have separate undergraduate
or graduate accounting programs. At least we
would not have accounting programs as they are
structured today. W. Steve Albrecht and
Robert J. Sack A Perilous Future - 2000
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The Way it Is

• A malaise appears to have settled in. Our
  progress has turned flat, our tribal tendencies
  have taken hold, and our joy has diminished.
• Joel Demski, AAA President
• Some Thoughts on Accounting
  Scholarship
• 2001 Annual Meeting Presidential
  Address

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Why Did We Fail?

• Reliance on Traditional Structures
• Limited Leadership and Vision
• Inability to Turn Vision into Reality

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Vision leads to Systemic Structure leads
to Patterns of Behavior lead to Events
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Education Structural ForcesWithin Universities
and Colleges
Graduation based on the course-credit system
Academic department structures Schools of
Accounting Faculty promotion, tenure and
reward systems Discipline-driven Ph.D.
programs FTE-driven resource allocation systems
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Education Structural ForcesInfrastructure of the
Academy
Socialization of new faculty within Ph.D.
programs Prominence / influence of
single-discipline journals Orientation of
single-discipline academic associations
AAA and FSA Accreditation processes
separate accounting accreditation State
governance and coordination policies
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Course-Credit Model
Mission-in-use to maximize resources and
reputation. Core process (learning) goals are
ill-defined. The means of learning (courses)
are taken as ends. Learning is not assessed by
operational measures. The core learning
process is not continuously improved. The
model encourages competition not collaboration.
The control structure encourages
independence Ralph Mullin The
Undergraduate Revolution
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Education Structural ForcesWithin Professional
Employment
Professional licensing requirements and
examinations Orientation of professional
practitioner associations 150-hour
requirements embedded in state statutes CPA
examination focus on licensed attest role CPE
regulations driven by attest-related criteria
CPA credential-driven limitations on accounting
practice
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Changing the curriculum has all the physical and
psychological problems of moving
a graveyard. Malcolm Gillis, President
Rice University
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The concepts of security, stability,
academic freedom, and tenure which are
fundamental to the life of the academy may
limit a facultys ability to adapt to changes in
the external environment. Richard Boyatzis,
Scott Cowen, David Kolb Innovation in
Professional Education
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One of our trustees says that if he learns that
the end of the world is at hand, he
will immediately come to Duke, because everything
takes a year longer here. Nan Keohane,
President Duke University
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As a practical matter, little has changed in
the way most professors teach and the way
most institutions organize learning
opportunities, despite the indicators that
learning outcomes are not as favorable as had
been assumed. Frank Newman, Director
The Futures Project
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Planning Success Principles
Leadership Attention to the Marketplace
Engagement of Stakeholders A Structured
Framework Facilitated Teamwork
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Leadership
Leadership is the capacity to release and engage
human potential in the pursuit of common
cause. Michael Moore and Michael
Diamond Academic Leadership Turning
Vision into Reality
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Leadership Challenges
Individual vs. Institutional Focus
Isolation vs. Integration Decision Gridlock
vs. Speed-to-Market Structural Forces A
Stable System Academic Cultural Values
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Academic Accounting Leadership

• .Risk taking, innovation, fundamentals, and
  long term growth are not visible. Zero variance
  is sought, at the woeful cost of a disallowing
  options. And, I might add, we even have the APLG
  section (or group) in the association.
• Joel Demski, AAA President
• Some Thoughts on Accounting Scholarship
• 2001 Annual Meeting Presidential Address

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Multifaceted Leadership
Idea leadership Inspirational leadership
Process leadership Political leadership
Richard Boyatzis, Scott Cowen, David Kolb
Innovation in Professional Education
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The Leader as Strategic Planner
Be an enthusiastic sponsor of the process.
Secure the participation of planning team
members. Engender a climate of openness to
change and renewal. Be willing to put
everything on the table. Sustain commitment
to the process through tough times. Sustain
communications keep everyone informed. Know
when to, and be willing to, take the
decision. Be accountable for leading
implementation.
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You cant tell who the leaders are from
the organization chart. We have developed
an absolutely certain way of detecting
leadership talent. We simply observe who has
followers. A person who has followers is a
leader. William Gore
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Positioning Preferences

• Conservative
• Risk-Averse
• Short-Term
• Quantity
• Impact on Us

• Innovative
• Risk-Taking
• Long-Term
• Quality
• Service to Others

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Community Preferences

• Compartmental
• The Individual
• The Unit
• Need-to-Know
• Carrot / Stick
• Reward Commitment

• Cooperative
• The Team
• The Organization
• Open Communication
• Shared Commitment
• Reward Performance

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Planning Success Principles
Leadership Attention to the Marketplace
Engagement of Stakeholders A Structured
Framework Facilitated Teamwork
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Shaking the Pillars ofHigher Educations Paradigm
Engine of Knowledge Certification of
Learning The Residential Campus Subsidized
Cost Structure Life-long Learning
Competitive Intensity
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• Corporate Universities
• Virtual Universities
• Consortia of Colleges
• Foreign Schools

Threat ofNewEntrants
Cost pressures
Price pressures
Low entry barriers
BargainingPowerof Customers
BargainingPowerof Suppliers
RivalryamongUniversities
Low growth / shrinkage Excess capacity Degree
proliferation Undifferentiated programs

• Students
• Parents
• Employers
• Funding Sources
• Legislators

• Faculty
• Staff
• Technology
• Outsource services

High exit barriers
Easy to substitute
Threat ofSubstitutes

• Books, video, CD-ROM
• Internet
• Interactive television
• Desktop Computer

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The talk you hear today about adapting to change
is not only stupid, its terribly dangerous. The
only way you can manage change is to create it.
By the time you catch up with change, the
competition is already ahead of you. Peter
Drucker
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Planning Success Principles
Leadership Attention to the Marketplace
Engagement of Stakeholders A Structured
Framework Facilitated Teamwork
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The single most important thing to remember about
any enterprise is that there are no
results inside its walls. The result of a
business is a satisfied customer. The result of
a hospital is a healed patient. The result of a
school is a student who learns something and puts
it to work. Peter Drucker
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Engagement of Stakeholders
Dean, department chairs, program directors
Faculty and staff Students and alumni
Student recruitment and career services
Employers and advisory board members
Development, corporate and public relations
Technology, library and other internal services
University administration
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A strategy has power to the extent that
the stakeholders of an organization can
describe the strategy in their own
words, the relevance of the strategy to
their own work, their roles in making
the strategy succeed, and their gain in
making the strategy succeed.
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Never doubt that a small group of
thoughtful, committed people can change the
world. Indeed, it is the only thing that ever
has. Margaret Mead
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Planning Success Principles
Leadership Attention to the Marketplace
Engagement of Stakeholders A Structured
Framework Facilitated Teamwork
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Strategic Framework
Distinctive Capabilities
Measures of Success
Mission
Strategies
People
Shared Purpose Shared purpose provides focus
by driving strategy.
Scholarship
Shared Values Shared values provide control by
guiding execution.
Education Programs
External Relations
Measures of Success Indicators of
mission achievement.
Internal Operations
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Distinctive Capabilities
Competitive success follows from focusing every
element of an organization on a strategic vision.
Achieving that vision requires the development
of superior competence, or the ability to excel,
in a set of distinctive capabilities which have
special value to a particular part of the
marketplace.Note that excellence by itself is
not enough. It must be excellence in areas of
strategic significance, i.e., that determine the
outcome of competition in the marketplace for
ideas, for faculty, for students, for financial
resources
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Distinctive CapabilitiesThree Tests

• Stakeholder Value
• The capability makes a disproportionate
  contribution to stakeholder-perceived value.
• Competitor Differentiation
• The level of capability is uniquely held or is
  substantially superior to that of competitors.
• Extendibility
• The capability provides a basis for future
  value-adding programs and services

Adapted from Competing For The Future, Hamel
Prahalad, 1994
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Business SchoolDistinctive Capabilities
Information Systems
Management
Marketing
Accounting
Finance
External Relations
Internal Operations
Education Programs
Scholarship
People
Executive Development
Baccalaureate Program
MBA Program
Ph.D. Program
Specialized Masters
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Accounting Program Choices
Baccalaureate
150 Hour
Masters
Doctoral
General
BA-a BS-a
BSBA-A
MBA
MAcc/MSA MBT/MST
BSA
Certificate
Ph.D
Specialized
Concentrations / Tracks Public
Accounting Management Accounting
Governmental Accounting Information Systems
Management Consulting Taxation
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Accounting Research Choices
Orientation Discovery Integration
Application Teaching
Method Analytical Empirical
Archival Experimental Qualitative
Survey etc.
Research Dimensions
Functional Area Auditing Financial
International Managerial Systems
Tax
Discipline Economics Finance
Management Science Psychology Social
Science etc.
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Strategic Framework
Distinctive Capabilities Core competencies require
d to fulfill our mission
Measures Indicators for achieving our distinctive
capabilities
Strategies Critical things we must do to achieve
our mission
Mission
People
Shared Purpose Shared purposes provides focus
by driving strategy.
Scholarship
Shared Values Shared values provide control by
guiding execution.
Education Programs
External Relations
Measures of Success Indicators of success in
fulfilling our mission.
Internal Operations
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Planning Success Principles
Leadership Attention to the Marketplace
Engagement of Stakeholders A Structured
Framework Facilitated Teamwork
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Why Independent Facilitation?
Established groups bring their existing
interpersonal baggage. New groups do a lot of
sizing up and temperature-taking. Most groups
tend to shy away from engaging on hard issues.
May help to minimize Here we go again!
skepticism.
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Roles of Facilitation
Provide unbiased process management. Help
the team to stay on task. Elicit participation
from all team members. Assist in raising and
engaging on tough issues. Be a catalyst for
challenging current paradigms. Enable academic
leaders to focus on issues. Help the team
reach as much closure as possible.
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Turning Vision into Reality

• Attention to Structure
• University Decision Making
• Open Communication
• Continuous Assessment
• Renewal Processes

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Universities today often find it easier
to construct buildings and increase
endowments than to bring about fundamental
improvements in the teaching and learning
processes. Richard Boyatzis, Scott Cowen,
David Kolb Innovation in Professional
Education
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If you have a stable system, then there is
no use to specify a goal. You will get
whatever the system will deliver. A goal beyond
the capability of the system will not be
reached. W. Edwards Deming
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We all know what it feels like to be
facing compensating feedback the harder
you push, the harder the system pushes back We
push harder, faithful to the creed that hard work
will overcome all obstacles, all the
while blinding ourselves to how we are
contributing to the obstacles ourselves.
Peter Senge The Fifth Discipline
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Most educational innovation begins by assuming
the very structures and processes that should be
questioned the course, class, grades,
examinations, classroom, credit hours, lectures,
and so on. Richard Boyatzis, Scott Cowen,
David Kolb Innovation in Professional
Education
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The disciplinary hold on curriculum, a
course- and-credit system of academic
bookkeeping, and the atomism of faculty reward
systems all stand as formal impediments to
the educational renewal to which campuses
aspire. Carol Geary Schneider and Robert
Shoenberg Habits Hard to Break
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University Decision Making
Decision by Committee (committees of
experts) Fluid Participation (participants
wander in and out) An Issues Carousel
(decisions pinned down temporarily) A
Subsidiary Process (burden simple decisions)
Conflict is Common (diverse interest groups)
Result Decision Flow instead of Decision
Making Daniel Julias, J. Victor Baldrige,
Jeffrey Pfeffer A Memo from Machiavelli
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May You Live in Interesting Times!

• It was the best of times, it was the worst of
  times, it was the age of wisdom, it was the age
  of foolishness, it was the epoch of belief, it
  was the epoch of incredulity, it was the season
  of Light, it was the season of Darkness, it was
  the spring of hope, it was the winter of despair,
  we had everything before us, we had nothing
  before us, we were all going direct to Heaven, we
  were all going the other way.
• In short, the period was so far like the present
  period, that some of its noisiest authorities
  insisted on its being received, for good or evil,
  in the superlative degree of comparison only.
• Charles Dickens
• A Tale of Two Cities

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Academic Leadership Turning Vision into Reality