Why do European Business Schools seem to be addicted to Impact Assessments? Vancouver, AOM, 2015
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1 Why do European Business Schools seem to be addicted to Impact Assessments? Vancouver, AOM, 2015
2 Presentation Professor of Strategy at IAE LYON School of Management, Magellan, University Jean Moulin Scientific Advisor at the Business Science Institute: International Executive DBA EFMD: Special Advisor for BSIS: Business School Impact Survey 2
3 Agenda 1. Preliminary considerations on impact 2. The interest of European Business Schools in impact 3. The BSIS system 4. The reasons for this interest in impact 5. Is there a specific interest of European Business Schools in impact? 3
4 1. Preliminary considerations on impact When we talk about impact, we need to distinguish The awareness of the impact both By the Business Schools By the Stakeholders The impact itself (research, teaching, other activities) The assessment of the impact The communication of the impact 4
5 2. The interest of European Business Schools in impact: A few years ago FNEGE & EFMD created a tool to help Business Schools assess their impact on their local environment: BSIS (Business School Impact Survey) What is the origin of this BSIS tool? 5
6 2. The interest of European Business Schools on impact: What is the origin of this BSIS tool? The strategy of a large number of European Business Schools has been characterised during the past years by the quest both for accreditation and for internationalization. These orientations, which were very useful, diverted the Business Schools attention away from their home territory. Stakeholders (among them financial stakeholders) are now asking questions about Business Schools contribution to their local environment. The original idea of BSIS was to demonstrate that, in spite of this general trend towards a stronger international positioning, Business Schools continue to contribute to the region in which they were initially founded (Back to Roots!). 6
7 2. The interest of European Business Schools in impact: the facts What are the results of BSIS after its launch in France (2013) and in Europe (2014)? à 17 Business Schools have been through the BSIS process 12 in France, 4 in Europe, 1 in the Middle East. 7
8 3. The Business School Impact Survey system Objective: Determine the nature and extent of a School s impact on its local environment City, Land, Canton, Region = Impact Zone A tool for transparent communication with local stakeholders, decision makers and public opinion Identify, measure and evaluate the various areas in which a School makes a difference in the impact zone Answers the growing need for public accountability Not a research project Not an accreditation system, not a ranking No score, no comparison, no failure 8
9 3. The BSIS Assessment Criteria 3 Dimensions, 24 Impact Areas, 120 Indicators 1. Financial and Economic Impact Quantifiable contributions to the local economy: Budget outlays, s tudent expenditure, jobs c reated, new business s tart- ups, etc. 2. Impact on the Local Community What the School brings to the region in terms of resources and services rendered: Internships, s tudent projects, faculty c onsulting, executive education, contributions to local business development, awareness of societal issues, etc. 3. Impact on the Attractiveness and Image of the Local Community The School s contribution to the brand image of the region 9
10 3. The BSIS Process Definition of the scope of the School & of the Impact Zone Collection of the data by the Business School Preparation of the documentation by the School: BSIS Introductory Report BSIS Impact Assessment Report Two- day on- site visit by two experts Interviews with k ey players inside and outside the School Written report and recommendations on the impact 10
11 BSIS Added Value Mission clarification Impact zone definition Key stakeholder identification Identification of impact areas Definition of relevant impact measurement criteria Data collection system on impact creation External communication on impact Internal communication on impact Impact assessment Data interpretation
12 4. The reasons for this interest in impact : The BSIS process entails two costs: Financial Time So what are the reasons that explain the interest in this approach? External reasons 12
13 4. The reasons of this interest on Impact : External reasons An adverse economic and social context for Business Schools The economic crisis and in some countries its consequences on the financing of Business Schools A stronger demand for accountability on the part of their stakeholders Pressure of the accreditation systems, which focus more & more on impact AACSB: Mission & Impact driven The imitation effect: in an industry where the competition is severe, Business Schools try both to differentiate themselves and to avoid missing a relevant trend in the sector (the isomorphism effect: Impact, the new fashion?). 13
14 5. Is the interest in impact specific to some European countries? Yes: BSIS was launched in France because of the specific financial concerns of the French Business Schools, many of which were created by the local Chambers of Commerce and which continue to be financed by them. However, these Chambers of Commerce now face a drastic reduction of their financial resources with obvious consequences on the financing of their Business Schools. No: Since the launch of the international version of BSIS by EFMD, we have observed an immediate interest on the part of Schools in Belgium, Switzerland, New Zealand, etc. Clearly the interest in assessing local impact is widespread and not limited to narrowly financial concerns. 14
15 6. Concluding observations The issue of impact is not just of interest to Business Schools. It is a concern for Engineering Schools and indeed for all universities. Furthermore, it is also an issue for cities or regions that would like to assess the global impact of all the Institutions of Higher Education that operate within their territory. The pendulum effect of Business Schools strategic focus : historically from local to global and now from global to local. However, there is no contradiction between a focus on internationalization and a focus on the local environment. The University of St. Gallen in Switzerland has a Vice President whose title is Internationalization & local impact. The pendulum effect of the Business School focus from the impact of research to the impact of all the activities of the Business School. There is a risk for Business Schools to focus on activities that have short- term visible impact. 15
16 Why do European Business Schools seem to be addicted to Impact Assessments? Thank you for your attention Vancouver, AOM, 2015
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