Peer Review Report for International Business School at Vilnius University (IBS at VU)

Transcription

1 Peer Review Report for International Business School at Vilnius University (IBS at VU) CEEMAN (IQA) Accreditation February 2015 Peer Review Team Dr. Vladimir Kolchanov, former Deputy Rector, IMISP, and former CEEMAN IQA Accreditation Director, St. Petersburg, Russia, Chairman of Peer Review Team (PRT), Dr. Modris Ozolins, former Deputy Rector of Riga Technical University (RTU), former Dean/ Director of RTU Riga Business School, Riga, Latvia, Dr. Daniel Szpiro, former Academic Dean, Jack Welch Management Institute, Herndon, Virginia, USA. All members of the PRT were involved, through several iterations, in drafting the peer review report that presents consensus findings, suggestions, and recommendations. 1. Recommendation Based upon the review of the accreditation self-assessment report and the visit of the PRT it is recommended that IBS at VU be granted initial accreditation for the full sixyear period allowed. However, given current financial risks for the School, uncertainty of its future status as a public institution founded by Vilnius university and dependence on its founder s decisions regarding the School s development, it is required that in two years time from the visit a progress report should be prepared and submitted to the CEEMAN IQA Accreditation Director. This report should address all recommendations listed by the PRT and clearly demonstrate the progress achieved in dealing with internal weaknesses and external threats. 2. Mandate The PRT was asked to provide a joint report on which the CEEMAN Accreditation Committee could make a decision on the accreditation of IBS at VU. The report is based on: a) A three-day site visit held on February 23rd-25th, 2015, organized by the applicant and CEEMAN at the campus of IBS at VU (see Appendix A for visit agenda). This included discussions with management, staff, faculty, current students, alumni, corporate partners, employers and other stakeholders. b) The analysis of the self-assessment report submitted by IBS at VU, as well as other pertinent information provided to the PRT in the course of the site visit through documents, presentations and discussions with the applicant.

2 c) The PRT members professional expertise and experience. Dr. Kolchanov is a former Deputy Rector for Academic Affairs at one of the best Russian private business schools, and has served as the Director of IQA for CEEMAN. Dr. Ozolins has managed one of the leading business schools in the Baltics for a long time and has served as a CEEMAN board member. Dr. Szpiro is a former American business school dean having significant experience with accreditations and program reviews. 2. Introduction/Overview Prior to the visit, the panel had the opportunity to review the self-assessment report, which was delivered on time. Still due to the postponement of the peer review visit that was initially planned for 2014 but delayed because of the major changes in the School s management, this document practically did not contain information covering the developments of the previous year. To fill in this gap the PRT requested additional information that was prepared on the eve of the visit. During the site visit, meetings were arranged with representatives of all key stakeholder groups. The PRT would like to recognize the positive reception received at the School, the willingness of management and staff to provide all requested extra information and the openness and cooperation of everyone who met with them. Following the formal site visit, the PRT members met before leaving Lithuania to discuss individual impressions and their assessment of the discussions and documentation provided prior to and during the visit. It was the unanimous decision of the panel to recommend IBS at VU for accreditation. However, the PRT members shared some concerns related to a number of issues that, under certain circumstances, may negatively influence the School s future. This resulted in an additional condition a progress report has to be prepared by IBS at VU in 2 years following the time of the initial accreditation visit and submitted to the CEEMAN IQA Accreditation Director. There were areas in which the PRT had observations and recommendations, that the PRT members believed could strengthen IBS at VU. The panel met with the key managers of the School prior to their departure and presented their preliminary findings. 3. Findings 3.1 Institutional Mission and Strategic Focus Mission and Vision According to their self assessment document, IBS at VU s vision is to be: An innovative business school integrating science, education and business which, together with Vilnius University, develops entrepreneurship, life-long learning education and relevant research activities. The School also has a following mission statement: To educate current and future business professionals who are socially responsible and environmentally friendly. 2

3 Strategic Goals The School has provided a document on strategic goals implementation. These goals are divided by six main areas Higher Education, Executive Training, Research and Innovations, Quality, Internationalisation and Partnership, Creation of a Community. The main problem we faced with when exploring these goals is their qualitative nature. It is not clear how the School is going to monitor and measure their achievement. It is the opinion of the PRT that both mission and vision have to be elaborated and updated. We feel that there is a lack of coherence between mission, vision and strategic focus of the school and some concepts (e.g., environmentally friendly managers ) are too vague and uncertain. A few programs within the School s portfolio fall outside the mission statement as currently constructed. Strategic goals and objectives have to become measurable. This may bear re-visiting. Still, practically all of the stakeholders who met with the panel were aware of the School s vision and mission as formulated to date. 3.2 Legal Status and Governance IBS at VU was organized in 1989 as a department of Vilnius University. In November 2000, a separate legal entity, a subsidiary of VU, was established. Due to the new requirements of the Lithuanian legislation in June 2003, the Senate of Vilnius University adopted a resolution modifying the legal form of the IBS at VU into a Public Institution, as only this form of legal entities may engage in the rendering of university education. It is worth mentioning that, due to peculiarities of the Lithuanian legislation, having been founded by the public university and being a public institution, the School is treated as a private institution for tax, fiscal and some other purposes. The activities of the School are governed by the Law of Science and Studies of the Republic of Lithuania, other regulations, adopted by the Lithuanian Parliament, and the Statute of ISB at VU. The general organizational chart of the School is shown in the Appendix B. The PRT found that the governance structure for both administrative and academic activities is undergoing a number of changes and has to be further clarified. Some important units, like the Bachelor Program Committee, are missing in the organizational chart. The School s Council is formed but it is not operational since its members have to be approved by the university and this decision has been put on hold along with some others. The reason for that is the forthcoming elections of a new rector of the university and the unwillingness of the acting rector to take any important decisions regarding IBS before the elections scheduled for March We also felt based on our meeting with faculty members, that they are strongly supporting the current policy of the School s management, although faculty is not sufficiently involved in the strategic decision making process. 3

4 3.3 Achievements to Date The PRT felt the School can be commended for a number of achievements in recent years. As outlined in their self-assessment these include: A visible market share in study programs similar to those offered by IBS at VU; Re-structuring the portfolio of bachelor and master programs and renewing curricula; Shifting the emphasis in studies on entrepreneurship and innovations; Further strengthening of the identity, credibility, and legitimacy in the national and wider environment; Higher corporate involvement in the institution governance; Strengthening cooperation with social partners; Introducing innovative technologies related to distance learning; Ranked 3 Palmes of Excellence by Eduniversal in 2014 (excellent business school with reinforcing international influence); Re-built and well functioning alumni organization. IBS at VU seems to have created a sustainable culture of innovation that permeates the School, and provides an engaging and stimulating environment for faculty, staff, students and external stakeholders. 3.4 Program Structure and Participant Processes Degree Programs Bachelor (BA) Currently, there are 4 bachelor programs in the portfolio: 1) BA in International Business with 4 specializations (in Lithuanian) 2) BA in International Business (in English) 3) BA in International Business for students with practical experience (in Lithuanian) 4) BA in Business Finance (in Lithuanian) The four programs seem to be appreciated and valued by students and alumni. They praised the practical focus of studies and attention paid by the School to the development of functional skills underlying a general management perspective. They mentioned as well a great deal of personal care and support provided by the School s staff in the course of studies. It looks like there is an established process to monitor students progression through the programs. IBS at VU pursues an admissions strategy and process that recognizes the importance of student fit with the program. Admission is regulated by the Descriptor for Admission Procedure and Admission rules based on Lithuanian Legislation. As a result, staff members work closely with prospective students through the admissions process to ensure that only candidates with appropriate qualifications and experience and a strong likelihood of successfully completing the program are admitted. Enrollments have declined significantly in recent years. This 4

5 is attributed to the demographic gap in Lithuania and a shrinking market as a consequence. Therefore, there are a number of challenges, the School has to deal with: - increasing the number of programs taught in English to make the portfolio more attractive for local students planning international careers and foreign students; - renewing program curricula some of them, e.g., BA in International Business (in English) look outdated; - careful assessment of market potential for BA programs and financial risks related to the fact that bachelor programs contribute about 60% to the School s revenue. The Bachelor Study Committee at the moment is dealing with some of these issues. Master (MA) Currently there are 4 master programs in the portfolio: 1. International Marketing and Trade (in Lithuanian and English). 2. International Business Finance (in Lithuanian). 3. Creative Entrepreneurship (in Lithuanian). 4. International Project Management (in English). The studies are, in fact, modular. Students have classes on Thursdays, Fridays and Saturdays. This makes it possible for many of them to combine their studies with full-time employment. Minimum admission requirements include a higher university education in relevant fields or higher education in different fields combined with practical managerial experience and complementary studies in relevant fields. In master studies the role of Program Director is of utmost importance. He (she) is responsible for program quality assurance and achievement of learning outcomes. As was the case with bachelor programs, master students praised the practical focus of their studies and the attention paid by the School to the development of entrepreneurial skills underlying a general management perspective. They mentioned as well a great deal of personal care and support provided by the School s staff in the course of studies. It looks like there is an established process to monitor students progression through the programs. The PRT members think that the role of MA programs and their financial contribution to the School s revenues has to be increased significantly. Currently their contribution to IBS at VU s revenues is just about 12% Non-Degree At the moment non-degree programs including open enrollment and in-house programs do not play an important role in the School s activities bringing in less than 4% of the School s revenue. The PRT thinks that IBS at VU management has to pay serious attention to this part of portfolio. It is vitally important in terms of reputation and financial stability to expand both their scale and their scope. 5

6 3.5 Curriculum Development and Innovations There is no question that the School is applying visible efforts to improve the content of its programs, The focus on themes such as entrepreneurship, small business development and creativity contribute to programs that produce graduates who the employers describe as self reflective and having a breadth and depth of perspective on management that they do not necessarily see in graduates of other programs. At the same time the panel members did not notice sufficient evidence that the issue of curricula internationalization is dealt with to sufficient extent. We also have to mention a deficit of local cases prepared by the School s faculty. 3.6 Learning Outcomes and Evaluation Processes Evaluation is an important part of all programs and a well-established evaluation process is in place. The PRT was provided with a set of documents describing the procedure for assessing learning outcomes. The procedure defines the forms and times of the assessment, arrangements, rights and responsibilities of students and faculty during the assessment process. The procedure emphasizes the objectivity and transparency of the evaluation process as well as familiarizes students with the assessment criteria. The assessment criteria are included into each course unit description. The procedure and assessment criteria for theses are provided by special Regulations. The panel members had a chance to see samples of exam papers and theses that prove that an assessment system is really in place. IBS at VU pays considerable attention to quality issues. Its quality assurance system is based on the ISO9001:2008 standard implemented in The Quality and Accreditation Coordinator is responsible for compiling information to be provided for internal audits and external evaluations. At the end of each semester students are surveyed on delivery of courses and teachers performance in general. The results of the survey are introduced to the faculty, student representatives and the School s management. 3.7 Faculty In 2014 there were 126 faculty members employed by IBS at VU. The school works with a relatively small number of permanent faculty and a large group of part-time faculty drawn from VU Faculty of Economics and business practitioners. A permanent lecturer is a lecturer with at least a one-year contract and at least 40 hours teaching workload per year, having at least one scientific article published on behalf of IBS at VU and actively participating in the School s social activities. While 50% of all faculty members have an academic degree, for professors and associate professors that number rises to 100%. The PRT thinks that there are two potential areas of improvement with regards to faculty management policy: 1) Overreliance on part-timers imposes certain strategic risks the School has to find an appropriate balance between permanent and adjunct faculty; 2) At the moment the number of foreign 6

7 faculty members is quite limited this requires serious attention if the School plans to be truly international. 3.8 Research and Contributions to Theory and Practice Scientific research is obviously a value of the School. Two directions can be clearly distinguished as the central ones entrepreneurship and finance. Based on the data of , there was a positive dynamics in publications of all kinds, from monographs to articles in refereed journals and databases. Last year 64 employees of the School participated in international scientific conferences and seminars. The PRT members were provided examples of using results of scientific research in the class. 3.9 Resources and Support Processes Staff The PRT was positively impressed by the professionalism, enthusiasm and dedication of practically all of the staff they met with. There was a clear sense of pride in being part of a high performance team and a willingness to support each other and work together in support of IBS at VU Facilities The panel had a guided tour of the facilities, which they viewed as high quality. The school features 26 well-equipped classrooms, including 6 study rooms for smaller groups of students, and 3 computer rooms with 55 work stations. The addition of the new state-of-the-art Vilnius University library building has greatly enhanced the capabilities and capacity of the School. The School is subscribed to four major databases Sales, Marketing and Corporate Communications Currently these three functions are undergoing an organizational redesign. Having interviewed a few staff members, the PRT got a feeling that some of them are still not quite certain and comfortable with their new roles. The PRT members think that these three areas need clarification of structures, business processes and employees roles and responsibilities Alumni Development IBS at VU has a well-established alumni organization, whose members are quite focused on networking and the proactive development of activities to support. The many alumni the panel met with were very proud of having attended IBS at VU, positive about the school and their educational experience. 7

8 3.10 Applications of Technology All teaching, administrative support and personal technology observed was up to date and well supported. The web site is fine in terms of information but can be improved in terms of user friendliness Business/Financial Model and Financial Viability The PRT was provided access to the latest financial statements that showed that the School s revenue was steadily decreasing in the last 5 years and it had run an annual operating deficit in years At the same time, IBS at VU is heavily dependent on tuition fees comprising more than 70% of its incomes, while incomes from external sources (e.g., EU funds) are about 20%. Given these facts, and the high costs related to maintenance of the premises it is vitally important to revise the structure of program portfolio and to increase a number of programs with higher margins (MA, non-degree) versus BA. It would also make perfect sense to negotiate with VU more favorable terms of renting the building, which VU owns How the Institution Meets Specific Needs of Local Environment and Looks Like with Respect to Internationalization and Social Responsibility IBS at VU is quite visible in the region. It serves the managerial development needs of Lithuania and, to some extent, of its neighboring countries. It looks like a socially responsible institution caring about the social and physical environment. At the same time, the level of internationalization is currently limited in terms of student body, faculty, curricula and programs. The PRT felt that IBS at VU has to increase its international visibility paying special attention to cooperation and potential alliances with reputable foreign partners, increasing number of programs taught in English, and attracting more international students and faculty. 4. Summary IBS at VU is one of the best business schools in Lithuania. The school has high quality facilities, which makes it an attractive place to learn and, to some extent, it is independent from its parent university, which allows it to be nimble in decision making. The PRT found IBS at VU to be forward looking and innovative, with a focus on quality and customers service and enjoying extremely engaged and supportive stakeholders. That said, the school is currently operating in a turbulent, rapidly changing and increasingly competitive environment, with growing price competition from low cost competitors at the bottom and brand competition from major players at the top. In this environment moving to the next level in scale and scope will be challenging and will require clarity around strategic direction and, quite likely, the investment in additional human resources. In the following section the PRT will offer some recommendations and issues for consideration. 8

9 5. Recommendations 5.1 Critical In the opinion of the PRT and, indeed, echoed by virtually all of the stakeholders with whom the PRT met, the one critical issue facing IBS at VU is that of governance and management stability. There are various strategic scenarios in terms of the School s future relationship with its parent university. The preferable one is to remain an independent legal entity under the VU umbrella. It will help to maintain a strong brand name while enjoying a certain level of independence in decision making and lowering the numerous risks in the volatile market. The success and evolution of IBS at VU is linked with the vision and dedication of the Dean, Mr. Arunas Siksta, who is strongly supported by all stakeholders. The panel commends Mr. Siksta s efforts and thinks it is vitally important that he will stay in his position for at least 3 to 5 years in future. 5.2 Recommended 1. There is a lack of coherence between the current mission statement, the School s vision and its strategic focus. The PRT members recommend that both mission and vision have to be elaborated and updated to be in line with the School s strengths and current requirements of the market. The strategic goals have to become less qualitative and more measurable. 2. There is a significant imbalance within the School s program portfolio. It is clearly biased towards BA programs while non-degree executive programs are nearly missing. The PRT recommends revisiting the positioning of the School and its USP to ensure there is consensus on the desired program balance and focus going forward. 3. The current level of internationalization of the School is not sufficient for reaching its strategic objectives. The PRT thinks it is absolutely necessary to establish partnerships with a few strong foreign institutions and based on that to increase the numbers of international students and faculty. The percentage of programs delivered in English has to be increased. 4. One of the strengths of IBS at VU is the quality of the faculty who work on the School s programs. The PRT recommends hiring additional full time faculty and optimizing the balance between permanent and adjunct faculty. Overreliance on part-timers is risky. This would provide more capacity and could help in identifying and developing individuals for senior leadership roles in the future. It would also allow for more active faculty involvement in strategy development and the marketing and sales of executive non-degree programs. 5. The School is currently undergoing numerous internal organizational changes aimed at increasing its operational efficiency. The PRT felt some of the changes were confusing for staff members since their roles and responsibilities have changed a lot but new structures and business 9

10 processes have not been described and formalized clearly enough. We recommend that this issue has to be sorted out with emphasis on new business processes description and identification of their owners. 6. Social partners and alumni of the School seem to be very loyal to it and are involved into various joint projects with IBS at VU. The PRT thinks that the field of cooperation with these stakeholders requires more attention and efforts from the School s side. 7. The financial statements show that current financial situation of the School and recent trends in general require careful analysis of risks and identifying the ways for its improvement. The PRT considers it vitally important to revise the structure of program portfolio and to increase a number of programs with higher margins (MA, non-degree) versus BA. It would also make perfect sense to negotiate with VU more favorable terms of renting the building, owned by VU. One more thing may be attracting more external EU funds versus tuition fees and state budget funds. 6. Conclusion As detailed above, IBS at VU faces challenges, notably in the volatility of the external environment, however, it does so from a position of positive changes and development. Senior management appear to clearly understand the challenges they are facing and are actively working to introduce new programs and innovative measures so as to ensure the ongoing success of the School. It is our recommendation that the IBS at VU receive accreditation from CEEMAN for a six-year period. However, given current financial risks the School faces with, uncertainty of its future status as a public institution founded by Vilnius University and dependence on its founder s decisions regarding the School s development, it is required that in two years time from the initial accreditation visit a progress report should be prepared and submitted to the CEEMAN IQA Accreditation Director. This report should address all recommendations listed by the PRT and clearly demonstrate the progress achieved in dealing with internal weaknesses and external threats. 10

11 Appendix A INTERNATIONAL BUSINESS SCHOOL AT VILNIUS UNIVERSITY (IBS at VU) CEEMAN (IQA) ACCREDITATION Evaluation team visit February 2015 Evaluation team: Dr. Vladimir Kolchanov Dr. Modris Ozolins Dr. Daniel Szpiro TIMETABLE OF THE VISIT Monday, 23 th February Meeting with Rector of Vilnius University (founder of IBS at VU) Participants Prof. Jūras Banys (Acting Rector of Vilnius University) Assoc. Prof. Kęstutis Dubnikas (Vice Rector for Academic Affairs of Vilnius University) Dr. Erika Vaiginienė (Head of Academic Division) Transfer from Vilnius University to IBS at VU Meeting with Director, Head of Study Division and Head of Academic Division Lunch Meeting with Directors of Master s degree Programs and the coordinators Meeting with students (BA) Ugnė Anelauskaitė Giedrė Pociūtė Monika Kniečiūnaitė Akvilė Jurevičiūtė Justina Radzevičiūtė Žilvinas Rutkauskas Peer Review Team Meeting with students (MA) Calle Hallberg Stephan Wagner Dovilė Krikščiukaitė Laimonas Dadūra MBA Arūnas Šikšta (Director of IBS at VU) Dr. Erika Vaiginienė (Head of Academic Division) Birutė Miškinienė (Head of Study Division) Prof. Vytautas Dikčius Prof. Jūratė Černevičiūtė Andrius Juškys Saulius Šimkonis Dr. Laima Urbšienė Eglė Paulikienė (Master Study Coordinator) Rūta Kričalaitė (Master Study Coordinator) 11

12 Janina Kuodytė Karolis Dūda Rūta Voverytė Meeting with Social partners Dr. Andrius Jaržemskis Dr. Dalius Serafinas Vytas Petrošius Kęstutis Jovaišas Rokas Navickas In the evening we kindly invite you for a dinner in Vilnius restaurant. Tuesday, 24 th February Preparation & coffee Meeting with Committee of Bachelor Programs Prof. Linas Čekanavičius Prof. Gindrutė Kasnauskienė dr. Nerijus Maliukevičius Assoc. prof. Egidijus Bikas Rasa Paulienė Gražina Mikaliūnienė Jūratė Karaliūnienė (Academic Consultant) Peer Review Team Meeting with Academic Division Dr. Erika Vaiginienė (Head of Academic division) Jūratė Karaliūnienė (Academic Consultant) Dr. Jurgita Vizgirdaitė (Coordinator of Faculty Affairs and Development) Angelė Balčienė (Quality and Accreditation Coordinator) Jūra Žilytė (Project manager at IEC) Daiva Mažeikaitė (Junior Researcher at IEC) Meeting with Innovation and Entrepreneurship Center Lunch Tour around the Scholarly Communication and Information Centre (SCIC) and Tour around the IBS at VU Dr. Erika Vaiginienė (Head of Academic division) Jūra Žilytė (Project manager at IEC) Daiva Mažeikaitė (Junior Researcher at IEC) Aleksandr Mironov (Trainee at IEC) Jūratė Karaliūnienė (Academic Consultant) Daiva Mažeikaitė (Junior Researcher at IEC) Meeting with Study division Birutė Miškinienė (Head of Study Division) Vita Remenytė (Head of Study Process) Inga Senūtaitė (Study Process Administrator) Rasa Mokšeckienė (Bachelor Study Coordinator) Vilhelma Šturaitė (Bachelor Study Coordinator) Eglė Paulikienė (Master Study Coordinator) Rūta Kričalaitė (Master Study Coordinator) Danutė Butkienė (Career and Practice Coordinator) Kristina Macevičiūtė-Bertašienė (Academic Exchange Project Coordinator) Sandra Čičinskaitė (Academic Exchange 12

13 Meeting with International Development and Foreign Students Group Coordinator) Birutė Miškinienė (Head of Study Division) Danutė Butkienė (Career and Practice Coordinator) Kristina Macevičiūtė-Bertašienė (Academic Exchange Project Coordinator) Sandra Čičinskaitė (Academic Exchange Coordinator) Ona Norkaitytė (International Marketing Projects Coordinator) Peer Review Team Meeting with Faculty Assoc. prof. Egidijus Bikas Darius Rupšlaukis Liudmila Lobanova Assoc. prof. Roma Kriaučiūnienė Gediminas Varnas Žilvinas Jančoras Assoc. prof. Vilija Gudonienė Assoc. prof. Aistė Diržytė Daina Čiūdarienė Laura Beinorienė Assoc. prof. Rolandas Strazdas Birutė Vilčiauskaitė Prof. Arvydas Paškevičius Assoc. prof. Regina Paliulytė Aurimas Pautienius Audronė Juozapavičienė Leonora Norvilienė Assoc. prof. Tadas Gudaitis Živilė Baubonienė Dr. Viktoras Filipavičius Laima Degutienė Aušra Pocienė Laurynas Dovydaitis Meeting with ALUMNI Kristina Katkuvienė Danutė Poškienė Vladas Černiauskas Mantas Jonelis Viktoras Račkovskis Wednesday, 25 th February Preparation & coffee Meeting with Marketing and Communication and Administrative and IT groups Rimantas Šerkšnas (Head of Administrative and Finance Group) Rasa Norkienė (Head of Marketing and Communication group) Ona Norkaitytė (International Marketing Projects Coordinator) Aliona Jankelaitienė (Head of Finance Group) Nijolė Kudabienė (Head of Human Resource) 13

14 Peer Review Team Meeting for a preliminary notices of accreditation results Lunch Dominykas Danys (IT Projects Coordinator) Evaluation visit coordinators: Dr. Erika Vaiginienė, Head of Academic Division, erika.vaiginiene@tvm.vu.lt, Angelė Balčienė, Quality and Acreditation Coordinator, angele.balciene@tvm.vu.lt Appendix B 14

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