© Academy of Management Review 1997 Vol. 22, No. 2, 335-345. 1996 Presidential Address REAFFIRMING OUR SCHOLARLY VALUES i r,; RICHARD T. MOWDAY University of Oregon . Perhaps the title ol my Presidential Address will strike some of you as rather uninspired. In the context of our annual meeting, it may even border on demonstrating a reassuring grasp of the commonplace. After all, what is our annual meeting if not a celebration of scholarship and a reaffirmation of our scholarly values? If I'm wrong about this, I have a lot to explain to my family about why I've disappeared for one week each August for the past 20 years. The reason I have chosen this title is that I believe reaffirming our scholarly values—although clearly important in and of itself—takes on special significance in the broader context of the changing environment and challenges confronting business education. Business schools—and, by implication, each of us—are being challenged to change in a number of important ways. We are being asked to expand our roles as faculty members and to make greater contributions in a variety of different areas. These demands have taken on a new sense of urgency with the publication of the Task Force Report on Faculty Leadership by the American Assembly of Collegiate Schools of Business (AACSB), a report I'll refer to later. In this address, I touch on two important themes. First, what are the implications of the changing environment of business education for our scholarly values? Do the changes taking place in our environment pose a fundamental threat to our scholarly values? Alternatively, do they provide an opportunity for us to reaffirm our scholarly values? Second, what are the implications of the changing environment of business education for the Academy of Management? What is the role of the Academy of Management as a professional faculty association in shaping the future of business education? Presently, our association is not a key player. Should the Academy of Management get involved and, if so, how? THE CHANGING ENVIRONMENT OF BUSINESS EDUCATION That business education is undergoing fundamental changes might have been a third theme of this address, but it almost seems too obvious to mention. Beginning with the landmark report by Porter and McKibben sponsored by the AACSB (Porter & McKibben, 1988), the need for members of business schools to reexamine their roles has been actively discussed. Porter and McKibben's report was a wakeup call for business schools and. 335 336 Academy ol Management Review April if anything, the pressures for change have intensified since its publication. Moreover, this report has had a tremendous influence in initiating and shaping the debate about the role of business schools and the adequacy with which they are serving their constituencies. At a minimum, I suspect there are a lot of us who have logged many more hours on curriculum revision and strategic planning committees as a consequence of the report than would otherwise have been the case. Thanks a lot. Port. The current pressures facing business schools and faculty members have been nicely summarized by Michael Moore and Michael Diamond in a report prepared for the Ernst & Young Foundation Strategic Planning Partnership (Moore & Diamond, 1996). I will not go into their analysis in depth; however, they reported that business education is facing a period of unprecedented competitive pressures. In describing the pressures driving industry competition, Moore and Diamond suggested: [T]here are relatively low entry barriers for new providers of business education services and that there is an increasing array of substitute educational vehicles for the traditional campus-based classroom setting. Additionally, there are high exit barriers for existing business education programs. Although it is feasible to drop specific programs and majors, it is uncommon to close a business school, whether publicly or privately funded. So, while competition and substitutes whittle away at the market shares of existing business education programs, the increasing bargaining power of their customers and supplies sustains the pressures to hold down prices even in the face of rising costs. When we add to this formula the new demographics of the college-going population, and the declining popularity of the business major, we find many business schools faced with stagnation or even significant shrinkage in enrollments. The result is excess capacity in current business programs and intensive competition for student, employer and donor attention. (1996: 2-2) • . • J .? . This competition has been intensified by the business school rankings published annually by Business Week and U. S. News and World Repoit. Who among us works in a business school in which these annual rankings are not a hot topic of discussion and concern, whether initiated by the dean, the business advisory council, alumni, or students? Jim March reminds us that when we lost the ability to rank business schools to the business press, so ended the stable order of things we have enjoyed for so many years (Schmotter, 1995). He also noted that the power of the research faculty in business schools has diminished as a result. We can argue about the validity of the business school rankings based on their methodology, but few can deny that the rankings of business schools by the business press have political significance that few schools can ignore. An industry characterized by high exit and low entry barriers, easy substitutability, and price and cost pressures? You don't have to be a strategy professor to realize that these pressures—alone and in combination—pose a significant threat. Lest we think that this is an idle threat or 19g7 Mowday 337 something created by the business school deans to get the attention of the faculty, it is useful to remind ourselves that the competitive pressures are real. From 1968 to 1996, the number of corporate universities has grown from around 400 to 1000. Although these corporate universities used to be found primarily in the high technology industry, they now are found in industries as diverse as financial services and health care (Newsline, 1996). Another indication that we are under intense pressure to change comes from within our industry. The AACSB recently released the report of the Faculty Leadership Task Force. If you have not yet read this report— and I suspect many of you have not—I recommend that you obtain a copy. The report suggests that a number of symptoms reflect the underlying problems of business schools. Among the symptoms and problems discussed in the report are (a) the lack of real world experience ol faculty and the irrelevance of our research and courses; (b) new technology being developed that the faculty is unfamiliar with and slow to adopt; (c) the changing demographics of the faculty, including a bulge in senior faculty members who are resistant to change. Regarding this last point, the authors of the report consider that lack of a mandatory retirement age and the absence of post-tenure reviews as exacerbating the problems. The major problems confronting business schools are summarized in the problem definition found in the report: [T]he primary problem is that faculty skills are not aligned with the rapidly changing needs oi business. Over time, business practice has advanced rapidly (e.g., TQM, reengineering, cycle time reduction, diversity in the work force, customer satisfaction incentives, global strategy and managing technology). Although school and faculty competencies have advanced, the gap between practice and academic research and teaching has widened. The lack of business interaction, changing technologies, aging faculty and shortage of incentives to change have inhibited faculty initiative to change that is necessary to keep pace with a rapidly changing environment. Faculty should be leading the next generation of industry knowledge and practice, but in some schools this is not the case. (A Report of the Faculty Leadership Task Force, 1996: 4) In the report the authors make a number of specific recommendations, including (a) developing closer links to business and technology, (b) improving faculty skill levels, (c) improving pedagogy and the learning environment, (d) revising Ph.D. program requirements, and (e) forming partnerships with professional and discipline-based organizations. These are probably not words that any of us care to hear. If one wished, there is certainly room to be critical of the AACSB task force report. The report calls for faculty leadership, but aren't the business school deans who belong to the AACSB the very people who are paid high salaries to provide the kind of leadership the report implies is not coming from the faculty? My own dean described the report as mildly offensive to business school faculty. I questioned whether "mildly" was the appropriate adjective. 338 Academy of Management Review April In both conversations and written correspondence with the AACSB personnel, I have been critical of the task force report. It is important to note, however, that my criticism lies less with the report's major conclusions and recommendations than with the manner in which they were developed and communicated. In fact, I find myself mainly, but not completely, in agreement with the report's conclusions and recommendations. In important respects, they don't strike me as much different from some of the recommendations made by Porter and McKibben, years earlier. My concern is that the report seems to lay the problems facing business schools solely in the lap of the faculty. If challenges exist, I think they are shared by the deans, business community, and faculty. Moreover, if we are to form a successful partnership in meeting these challenges, it can't begin with one group pointing the finger of blame at another group. I also have been critical about the role of the faculty in writing the report. One would have thought that the AACSB would have designed a process in which the faculty had a meaningful role in the discussion and debate from the outset. After all, successful implementation of the task force recommendations is unlikely without widespread acceptance by the faculty. Implying we are a bunch of aging old geezers, whose sole mission in life is to resist change, may not help in that respect. Of course, I could be wrong about that. IMPUCATIONS FOR OUR SCHOLARLY VALUES As I suggested, the challenges and pressures for change faced by business schools are great. What are the implications for our scholarly values? On the one hand, we can view the pressures as a threat to our scholarly values. On the other hand, the challenges we face might be viewed as a golden opportunity to reaffirm our scholarly values. My personal belief is more consistent with the latter perspective than with the former one. This may strike some as Pollyana-ish or naive in the extreme. However, the perspective one takes on this question may depend on what we mean by scholarship and scholaily values. Whether we define scholarship very narrowly, or more broadly, is critical in this regard. I would argue, as have previous Presidents of the Academy, that our definition of scholarship has narrowed over time. For many, scholarship has come to represent publishing research in refereed journals rather than the broader search for and dissemination and application of new knowledge. I was struck by a conversation I once overheard between two colleagues, one of whom had just returned from a sabbatical. When asked how the sabbatical had gone, my colleague replied that it went great; he'd gotten a couple of "hits." Of course, by hits he was referring to having several journal articles published. One can think of a number of ways my colleague might have described his successful sabbatical. He could have reflected on the exciting research questions he investigated or he could have talked about the intellectually stimulating research findings he uncovered. Instead, it all boiled down to "hits." 1997 Mowday 339 In an important monograph entitled Scholarship Revisited, Ernst Boyer argued for a broader and more inclusive definition of scholarship (Boyer, 1990). He suggested that scholarship is really defined by four separate but overlapping functions. The scholarship of discovery includes our traditional role as researchers to contribute to the stock of human knowledge and to the intellectual climate of our universities. The scholarship of integration includes the importance of giving meaning to isolated facts by integrating them and putting them in perspective. It involves "serious, disciplined work that seeks to interpret, draw together, and bring new insight to bear on original research" (1990: 19). The scholarship of application challenges us to apply our knowledge in useful and meaningful ways. In Boyer's words (1990: 21), "How can knowledge be responsibly applied to consequential problems?" Finally, the scholarship of teaching focuses on the crucial role of disseminating knowledge to others. Teaching both educates and stimulates future scholars, and engages us too as learners. Boyer (1990: 24) concluded by saying: , What we urgently need today is a more inclusive view of what it means to be a scholar—a recognition that knowledge is acquired through research, through synthesis, through practice, and through teaching. I couldn't agree more about the need to broaden our definition of scholarship. Boyer's definition is more inclusive of the many roles each of us is called upon to play at different stages of our careers. Moreover, it legitimizes the different roles instead of perpetuating the myth that some roles are more important than others. If you think about this in the context of the challenges facing business education, Boyer's arguments place scholarship and scholarly values at the center of what we as faculty members are being asked to contribute. Recommendations that faculty develop closer links to business and technology, and improve pedogogy and learning, are consistent with the broader view of scholarship that Boyer advocates. Moreover, if you accept this broader view of scholarship, the recommendations that follow from groups like the AACSB are less likely to be viewed as a threat than as an opportunity to reaffirm our scholarly values. I want to be perfectly clear about where I stand on this question. I personally welcome the challenges facing business education. Confronting these challenges holds the promise of causing us to learn and grow as individuals, increase our contributions as professionals, and allow us to more comprehensively fulfill our role as scholars. IMPLICATIONS FOR THE ACADEMY OF MANAGEMENT Let me turn to my second theme: What are the implications of the changing business environment for the Academy of Management? I'm sad to report that the world may be passing this organization by. In the important debates that are taking place about the future of business edu- 340 Academy o/ Management Review April cation, the Academy of Management has not held a meaningful role. In many respects, we are an insulated organization. This is not a new observation. We have recognized our insulation with respect to the international arena and with respect to the impact of our work on the broader business community (cf. Hambrick, 1993). Efforts to internationalize the Academy and to hire a public relations firm to make our research more accessible to the general public can be viewed as efforts to overcome our insulation. Clearly, more work is needed. With respect to the changing business school environments, however, we remain insulated. As an organization, for example, the Academy of Management has no relationships with other faculty professional associations. Similarly, we have only weak links to the AACSB and to the Graduate Management Admission Council (GMAC). Our links to business, although sometimes strong at an individual level, are nonexistent at the institutional level. What alternatives does the Academy of Management have in the face of the mounting pressures for change in business education? I believe our organization has at least three options. First, we can hunker down and hope that it all goes away. A "wait-and-see" attitude does have an attraction. A person I met recently at the annual meeting of the GMAC helped me understand the logic of following this strategy. In his opinion—and certainly not one shared widely in this room—the attention span of the average business school dean makes a ten-year-old on sugar look focused by comparison. In the movie "Field of Dreams," the mysterious voice advised Kevin Costner: "If you build it, he will come." The corollary of a wait-and-see strategy might be: "If you ignore, they will forget." Our second alternative might be to go on the offensive. Just as the AACSB has been highly critical of the faculty, we can deny the fundamental premises underlying their report and aggressively take issue with the very need for change. This strategy suggests we go to the barricades, fighting the deans tooth and nail down to the last piece of chalk or computer disk, whichever comes first. This alternative also has a certain attraction. Don't we approach this potential fight from a position of strength because we have the authority of science on our side? The authority of science in public debates reminds me of a charming story told by Steven Hawking in his book, A Brief Histoiy of Time (1988: 1): A well-known scientist (some say it was Bertrand Russell) once gave a public lecture on astronomy. He described how the earth orbits around the sun and how the sun, in turn, orbits around the center of a vast collection of stars called our galaxy. At the end of his lecture, a little old lady at the back of the room got up and said: 'What you have told us is rubbish. The world is really a flat plate supported on the back of a giant tortoise.' The scientist gave a superior smile before replying: 'What is the tortoise standing on?' 'You're very clever, young man, very clever,' said the old lady, 'but it's turtles all the way down.' So much for the authority of science to the general public. ; 1997 Mowday 341 Our third option is to recognize that the challenges we face are real and that the Academy of Management has an important and positive role to play in increasing the effectiveness of business education. In my opinion, the first ivfo alternatives—hunkering down and going on the offensive—pose significant risks. If the AACSB is serious, and my friend's assessment of the attention span of deans is wrong, the threat we face is real. The AACSB has a potential array of powerful allies: the business community, state legislatures, parents, and students. Moreover, the AACSB has some formidable weapons at their command. To name just one, they are moving very aggressively to include doctoral programs in the accreditation process. Doctoral programs are both close to our hearts as scholars and at the heart of our scholarly values. Bringing doctoral programs under the umbrella of the accreditation process is a powerful way to shape who and what we are. How many business schools are prepared to lose their accreditation over the question of whether our Ph.D. students should take one more course in research methodology or more interdisciplinary coursework in accounting, finance, and marketing? This is not a fight we are likely to win, nor is it one in which I believe we should engage. Some may argue that whatever the Academy's purpose as an organization, it's not to engage in debates over the future of business education. We are a scholarly organization, and we should stand above such mundane considerations. However, our constitution clearly states that our primary objective is "[T]o foster the general advancement of research, learning, teaching, and practice in the field of management and to encourage the extension and unification of knowledge pertaining to management." If we take our constitution seriously, it suggests that questions concerning the future of business education, at least as they relate to management, are central to our purpose. For those who remain skeptical, let me ask you a simple question: Do you leally want to trust the deans on this one? It should be clear that I prefer the third alternative. I believe the Academy of Management should play a positive, proactive, and influential role in the ongoing debate about the future of business education. Not only do I believe that it is in our vital interests to become engaged in discussions about change, but I also think we have important contributions to make in shaping the future directions of business. Let me give just one example of how I believe we can make a useful contribution to the ongoing debate. In the AACSB Task Force Report, reference is made to the "trade off" between rigor and relevance in faculty research. In fairness, I don't think that's what they meant to say. However, positioning rigor and relevance as opposite ends of a continuum is common in popular criticisms of business schools and faculty research. I believe what we have to contribute is a constant reminder to anyone who will listen that relevance without rigor is meaningless. Again turning to Jim March, he reminds us that "Good scholarship is relevant, and bad 342 Academy of Management Review April scholarship is not" (Schmotter, 1995: 3). It is precisely because of our scholarly values that we have an important and positive contribution to make. As I noted, though, the Academy of Management may not be positioned to become an influential player in shaping the future of business education. We have taken several initiatives this year to change this fact. First, the Board ol Governors has been engaged in a strategic planning process. Before we can play an important role in the changing environment of business education, we have to understand the environment and the changes that are taking place. Second, I have contacted the Presidents of the other faculty professional associations in an effort to build communication lines between our organizations. Creating strategic alliances with our faculty colleagues in the other associations may present interesting opportunities for the Academy. This effort has met with only limited success to date. Although our accounting and finance colleagues have expressed an interest in talking, I've yet to hear from other groups. Third, I personally contacted both the AACSB and GMAC to express our interest in becoming more involved as an organization. I should note that a major recommendation of the Task Force on Faculty Leadership was that the AACSB invite the faculty associations to be partners in the discussion. Right before leaving my office for our annual meeting, I was contacted by the AACSB about a meeting that will bring the various organizations concerned about business education together. It is a meeting that I strongly encourage officers of the Academy to attend. I have also been contacted by David Wilson, President and CEO of GMAC, to learn more about our organization and to explore ways we might have greater cooperation. Finally, with the help of Jack Viega and Kathy Dechant, Nancy Urbanowicz and I visited The Conference Board last fall to explore areas of mutual interest. Although a relationship with The Conference Board may be a long shot and would take time to develop, there appear to be several areas in which our interests converge. The Conference Board has access to the current generation of top-level business executives. What we have to offer is access to the next generation of business executives who sit before us in our classrooms. We would benefit from access to The Conference Board's members and the Board may be interested in access to our students. That sounds to me like an interesting opportunity for a mutually rewarding partnership. I'm not sure The Conference Board is the right organization for a partnership, but it is an example of the types of partnerships we might explore. One of the important priorities I had when I assumed the Presidency of the Academy was to position our organization to play a more influential role in shaping the future of business education. This will take time and much work remains. However, I think clear progress has been made. We have initiated a strategic planning process that will help position the Academy for the future. In fact, I would like to invite all who are interested 19g7 Movrday 343 to become involved in this process by attending one of the Vision Task Forces meeting tomorrow afternoon. The Vision Task Forces are an attempt to broaden our strategic planning process beyond the Board of Governors. Our goal is to include a s many members a s we can in discussions about our future. Moreover, taking the initial steps to develop strategic alliances with other organizations interested in improving business education may pay important dividends down the road. Change is never easy. Perhaps that is symbolized by a story told of two radio voices speaking to each other at sea: Voice 1 Please divert your course 15 degrees to the North to avoid a collision. Voice 2 Recommend you divert YOUR course 15 degrees to South to T :5;; avoid a collision. ,•'•:: v\::«;i: ^>v-;: Voice 1 This is the Captain of a U.S. Navy ship. I say again, divert YOUR course. Voice 2 No. I say again, you divert YOUR course. Voice 1 THIS IS THE AIRCRAFT CARRIER ENTERPRISE. WE ARE A VERY LARGE WARSHIP OF THE U.S. NAVY. DIVERT YOUR COURSE NOW! Voice 2 This is a lighthouse. Your call. This story illustrates that it is always a challenge to change course, to look where you are and to decide where you really should be going. The challenges we face and the pressures for change are daunting, but it is important to recognize that the environment of business education is changing a n d that we have a positive leadership role to play in shaping the future. In confronting the challenges of the future, we should not forget how far we have come in increasing the effectiveness of business education. One of my favorite quotes comes from Warren Bennis's description of the state of business education in the 1950s (Bennis, 1966: 182): •' In American universities—the less said about European universities, the better—business education, where it did exist, was disreputable, non- or antiscientific. It provided a haven for fools, adventurers, and the anemic heirs of industrialists who needed a college degree on the minimum of brains and the maximum of tuition, and it was taught as conventional wisdom cum moral uplift by successful, and hopefully, inspirational practitioners. Business education ranked in the academic hierarchy somewhere between football and a curiously indigenous American course known colloquially as home economics, a curriculum cocktail of cooking, etiquette, and good housekeeping. Clearly, we have m a d e tremendous strides in business education. That we face challenges today does not call into question our accomplishments 344 Academy of Management Review April of the past. Instead, it merely reminds us that in a world where our environment is changing, we also need to change to keep pace. As we confront the pressures on business education, we should not lose sight of what is best about business schools. For me, what is best are the scholarly values we bring to our roles. In making their recommendations for change in business schools. Porter and McKibben (1988) warned there is a real danger that the pendulum will swing too far in the other direction. It is an admonition worth taking to heart. We want to build on our strengths, not weaken our distinctive competence. In closing, let me say that being President of the Academy of Management has been an honor. And it has almost always been a pleasure. I leave office impressed by the dedication and commitment of the many Academy members, and our staff members, who make this organization so successful and belonging personally rewarding. It is the dedication, commitment, and talents of our members that leave me very optimistic about our future and the leadership role that the Academy of Management can play in business education. I said that being President was almost always a pleasure. All of us who have served in this role have faced the Presidential Luncheon Address with a certain degree of anxiety. In fact, I was talking with Mary Ann Von Glinow about this the other day. She mentioned that her first thought after learning of her election as Vice President and Program Chair was, "Oh no, the Presidential Address." Her speech would not take place until four years later, but she worried about it from the outset. So did I. So to conclude, let me quote Yogi Berra on an occasion that also called for him to make a speech: "I want to thank everyone who made this day necessary." ACKNOWLEDGMENTS Reflecting back on my year as President, there are far more people to thank than the constraints imposed by a short acknowledgment allow. Let me just say that I was fortunate to follow a President as outstanding as Mary Ann Von Glinow because I could bask in her reflected accomplishments. And I am blessed to be followed by a President as talented as Michael Hitt because he will clean up all the messes I've left. Working with Nancy Urbanowicz and her staff in Briarcliff Manor has been an absolute pleasure. Finally, I wish to acknowledge the support of my wife, Mary, sons, Graham and Garrett, and faithful dog, Sophie, who paid the price for all the travel and long hours in the office. Having me around the house more often may be a mixed blessing for my family, but Sophie will enjoy the walks. REFERENCES A report of the AACSB faculty leadership task force. April 1966. St Louis: American Assembly of Collegiate Schools oi Business. 1997 ; • : : Mowday 345 Bennis, W. 1966. Changing organizations. New York: McGraw-Hill. Boyer, E. L. 1990. Scholarship reconsidered: Priorities of the professoriate. Princeton, NJ: The Carnegie Foundation for the Advancement of Teaching. Hambrick, D. 1994. 1993 Presidential address: What if the Academy actually mattered? Academy of Management Review, 19: 11-16. Hawking, S. 1988. A brief history of time. New York: Bantam Books. Moore, M. R., & Diamond, M. A. January 1996. The challenge of change in business education. New York: Ernst & Young Foundation. Newsline. Spring 1996. The corporate university boom: B-school threat or opportunity? St. Louis: American Assembly of Collegiate Schools of Business, 25(3). Porter, L. W., & McKibben, L. E. 1988. Management education and deveiopmenf: Drift or thrust into the 21st century. New York: McGraw-Hill. Schmotter, J. W. Winter 1995. An interview with professor James G. March. Selections. McLean, VA: Graduate Management Admissions Council, 11{2).