AACSB Accreditation

Standard Five of the AACSB Business Accreditation Standards outlines expectations for schools relating to the articulation of clear financial strategies that support key action plans. This standard’s primary purpose is focused on the documentation of the key action items that are likely to be adequately funded and, therefore; achieved. This is why it is important to assess any future plans related to mission implementations and financial strategies. These plans must be included as one of the performance indicators for review teams (and your school) to determine if your mission is likely to be achieved. In essence, an AACSB-accredited business school should have a clear financial plan that allocates resources that align with its mission, key objectives, and overall strategy.

Short-Term Financial Fixes that Lose Sight of Long-Term Goals

Over the past several years, many business schools have reassessed their budgets and financial strategies to respond to the many economic challenges that have surfaced globally. Schools also have responded to the many shifts in market demand for programs and/or services. For example, the increased demand for part-time and online programs that has emerged has created quite a stir—which in many cases is in response to the economic pressures that are being felt by today’s business students. Many schools also have realigned programs as well. However, as schools consider such changes, it is important that they determine if the new approaches align with existing strategic objectives, and/or if mission and strategic plan revision are in order.

In dealing with the realignment of missions and/or the implementation of new programs and strategies, care should be taken to assess appropriateness in the context of long-term strategy. If all actions are focused on short-term solutions, the business school may be at risk as conditions change. This is why it is critical to step back and review whether or not changes to financial resources are aligned with strategic direction. The question to ask is, "did we make our financial changes due to an unstable economy that is expected to return to normal, or did we make our changes due to economic conditions that will lead to transformations in the market and consumer behavior?" A careful assessment is important to ensure that proper decisions are made, and that these decisions are made in the best interest of the business school and its students.

Financial Performance Indicators that Measure Strategic Objectives

Unfortunately, no one really knows what our long-term economic conditions are going to be like. This is why short-term strategies and subsequent financial performance indicators have become popular evaluation methods in stressful economic conditions. But, by carefully considering short-term actions and the subsequent financial outcomes related to long-term strategic objectives, such considerations will receive clearer assessments of their impacts and consequences. If short-term plans are implemented, indicators of success should be monitored on a regular basis (monthly is best depending on how active the area of measurement is). Design these indicators to identify trends and patterns. If the indicators show deviation from long-term objectives, then it is time to do further analysis. If obvious misalignments are apparent, then it is time to reconsider either your financial fixes or strategic direction.

Value of Accreditation Campaign

LinkedIn Campaign to Recruiters Ends
Over a three-month period, AACSB ran both text and display ads to recruiters on LinkedIn. The combined ad versions resulted in 3 million impressions and more than 1,000 click-throughs to a Web page specifically for recruiters. The page included a downloadable list of AACSB-accredited schools.