As we approach the release of the 2014–15 BSQ Finances Module data, the time seemed ripe to explore some of the preliminary data that were reported by our participating schools this year regarding governance structures. In particular, I was interested to see how decision-making is handled for various aspects of business school governance by our AACSB members across the world.
Of the 350 member schools whose data were finalized at the time of this writing, 13 were autonomous, stand-alone (Type C) business schools, unattached to any larger parent university or institution. For the BSQ Finances Module, the remaining 337 schools that were affiliated with a larger university or institution were each asked to indicate whether they themselves, their parent university, or the two jointly make decisions regarding five essential aspects of governance.
Figure 1. Control of Governance Aspects, Type A Schools (n=319)
Figure 2. Control of Governance Aspects, Type B Schools (n=18)
I was impressed to see the large proportions of schools that reported they had at least a shared level of control with their parent institution over most aspects of their school’s governance, if not outright control. Even among schools self-identifying as Type A, this was the case more often than not.
Clearly, the relationship type (A vs. B) does appear to make a difference in terms of the level of control a school has over each aspect. Indeed, we see what we would expect to see: schools that self-identify Type B reported higher levels of control over each governance aspect, on average, than their Type A counterparts. Still, I find it interesting that so many parent institutions seemingly allow for more substantial levels of control over these aspects of governance, particularly ones such as development and management of overhead expenses, which one might expect to fall more squarely under the aegis of a parent institution than, say, determining teaching loads.
Look out for my next post, in which I plan to delve more deeply into precisely which groups of stakeholders are involved in, or influence, the governance decisions of their business school!