AACSB Update Robert Reid Chief Accreditation Officer Middle

AACSB Update Robert Reid Chief Accreditation Officer Middle Atlantic Association of Colleges of Business Administration October 13, 2017 Philadelphia, PA

Our mission, together

Accreditation: Quality Assurance and Quality Improvement

AACSB Accreditation Update § Trends in Initial Accreditation and Continuous Improvement Reviews § Updates to Business Standards Guidance– July 2017 § Accounting Accreditation Task Force

Accreditation Outcomes 2016 -17 Initial Accreditation § 30 new business accredited, 3 deferrals § Americas: 7 § Asia-Pacific: 12 § Europe, Middle East and Africa: 11 § 1 new accounting accredited § 271 schools currently in initial accreditation process* § Americas: 62 § Asia-Pacific: 99 § Europe, Middle East & Africa: 110 Americas AP EMEA * Source: AACSB data and analysis as of 08/31/2017 5

Continuous Improvement Reviews - Business CIR 2 Outcomes 2011 -17 27% 21% 2011 -12 2012 -13 2013 -14 18% 18% 2014 -15 2015 -16 2016 -17 6

Continuous Improvement Reviews – Accounting CIR 2 Outcomes 2011 -17 16% 9% 9% 8% 8% 5% 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 2016 -17 7

Business Accreditation Standards Updated Guidance – July 2017 § Preamble and Eligibility Criteria: § Eligibility Criteria C: Added a definition of diversity and added guidance in the “basis for judgement. ” Also added guidance regarding diversity in standards 4, 5, 6, 7, 10, and 12. § Eligibility Criteria D: Added guidance regarding program inclusion. § Eligibility Criteria F: Added guidance regarding the accreditation timeline. § Standard 2: § Updated Table 2 -1, adding guidance about which faculty to include in the table. § Added Table 2 -2 as a requirement. 8

Business Accreditation Standards Updated Guidance – July 2017 § Standard 3: Added guidance regarding changes in resources or financial model. § Standard 9: Added guidance in the General Business Knowledge Area regarding evidence-based decision-making and data analytics. § Standard 11: Added guidance regarding competency-based education. § Standard 15: § Clarified the timeline guidance regarding new doctoral degrees and ABD status. § Added guidance regarding engagement with professional standards-setting bodies. 9

Business Accreditation Standards Updated Guidance – July 2017 § Standard 15 (Continued): § Added guidance about describing faculty deployment in the past five years and the plans for future deployment. § Added guidance regarding non-alignment with the standard, especially as it relates to emerging disciplines. § Added guidance in the basis for judgment and guidance for documentation to align with the word “guideline” in Table 15 -1. § Updated Tables 15 -1 and 15 -2. § Updated and renamed Appendix I: Examples of Impact Metrics in Support of Documentation. § Added Appendix II: A Collective Vision for Business Education: Utilizing the Framework within the Context of Strategic Planning & Accreditation Reviews. 10

Accounting Accreditation Task Force Charge: The task force is charged with a undertaking a comprehensive review of accounting accreditation, including standards, processes, structure and priorities.

Task Force Membership Members & Affiliation Urton Anderson, U. of Kentucky Ellen Glazerman, E&Y Brian Mc. Guire, U. of Southern Indiana Lisa Beaudoin, AMA Mark Higgins, St. Louis U. Scott Showalter, N. C. State U. Stephanie Bryant, Missouri State U. Carlos Johnson, NASBA Mary Stone, U. of Alabama Anthony Devine, Northumbria U. Ray Johnson, NASBA Brentni Henderson, NASBA Tracey Golden, AICPA George Krull, Grant Thornton Jan Williams, NASBA & AICPA Accreditation Summit Bruce Behn, AAA Raef Lawson, IMA Cynthia Cruz, AICPA Sharon Lassar, AICPA

Task Force Recommendations 1. Accounting accreditation standards should be more flexible and linked to the accounting academic unit mission. 2. Accounting accreditation standards should be more principles based and outcome focused. 3. Fully engage practitioners in the accounting accreditation processes. 4. Establish an Accounting Committee on Accreditation Policy. 13

Task Force Recommendations 5. Develop a thought-leadership role and process in conjunction with the American Accounting Association (AAA) and other key stakeholder groups to discuss issues, trends, and the changing environment. 6. Align the accounting accreditation documentation preparation and peer review process with the status of Accounting accreditation being an add-on to business accreditation. 7. Enhance the recruitment, training, deployment and assessment of accounting accreditation volunteers. 8. Increase the number of individuals with accounting backgrounds on the AACSB Innovations Committee and Board of Directors. 14

The Path Forward § Feedback from AACSB Board – September 2017 § Complete exposure draft(s) of the Accounting standards, seek feedback § Number of standards reduced from 9 to 6 § Exposure draft of standards § School workload and report preparation § Tighter integration with business CIR report and Peer Review Team § Reduce the size of the accounting report § Accounting Accreditation Council vote on proposed standards – April 2018 15

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Our impact, in business and beyond 90% 96% of ranked schools hold AACSB accreditation. of the chief executives on the Financial Times FT 500 attended an AACSB accredited school. 75% of candidates taking the CPA exam in the U. S. are graduates from AACSB-accredited schools and score 13% higher on average than students from other institutions.

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Macro-Regions AACSB Members AACSBAccredited In Accreditation Process Americas 772 50% 565 71% 62 23% Asia-Pacific 342 22% 107 13% 99 37% EMEA 429 28% 124 16% 110 41% Global 1, 543 100% 796 100% 271 100% Source: AACSB data and analysis as of 08/31/2017. Note: Percentages may not sum to 100 due to rounding.

Sub-Regions Macro. Regions Sub-Regions AACSB Members AACSBAccredited In Accreditation Process 42 3% 22 3% 8 3% 647 42% 524 66% 39 14% 83 5% 19 2% 15 6% 296 19% 85 11% 88 37% Oceania 46 3% 22 3% 11 4% EMEA Africa 32 2% 5 1% 3 1% EMEA Middle East 77 5% 17 2% 20 7% EMEA Europe & Near East 320 21% 102 13% 87 32% Global 1, 543 100% 796 100% 271 100% Americas Canada Americas United States Americas Latin America & Caribbean Asia-Pacific Central, Southern, South. Eastern, and Eastern Asia-Pacific Source: AACSB data and analysis as of 08/31/2017. Note: In this table, “United States” excludes U. S. territories in Oceania and the Caribbean. Percentages may not sum to 100 due to rounding.

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