Sharpening Our Vision:
Exploration of the
AAA's Possible Future
Roles
AAA Annual Meeting
Monday, August 5, 2013
Anaheim CA
Thanks to the Broad Participation
•
•
•
•
Mike Diamond – past president and volunteer leader
The Board
Council
Task Forces
Agenda
•
Our path
–
–
–
–
•
•
•
Overview of the changes facing higher education
Overview of our process
Insights from Council
The time is right: One-Time Opportunities
The journey: Task force reports
Where we are – and where we’re going
Feedback? Questions? Insights?
Overview
Mike Diamond
Past President of the AAA
University of Southern California
Why are we’re
doing this?
Two key elements as relates to
higher education
– Technology
– Business model disruption
Technological Forces
“Technology is doing
to education what it’s
done to countless
other industries:
disrupting it.”
-- Victor Hu, Goldman Sachs
Stanford U. President John
Hennessy on online education:
“There’s a tsunami
coming.”
…a
Technology is
changing the way
our students
learn…and courses
are delivered
Bain/Sterling white paper conclusion
“Higher education in the United States is at a
tipping point. In its time of need, the leaders
of our colleges and universities have a
tremendous opportunity to reshape and
reinvent an industry…”
– The Financially Sustainable University, July 2012
Source: www.thesustainableuniversity.com
Business Model Disruption
VALUE
PROPOSITION
RESOURCES
PROFIT
FORMULA
PROCESSES
Christensen, et al Disrupting College (simplified)
From Society’s Perspective
Their Tuition
The Value of their Degrees
From the University’s Perspective:
Their profit model
Tuition Income
Their Costs
Public Funding
Headline: July 23, 2012
US Higher Education at ‘Tipping Point’ with
One-Third of Schools Financially Unstable
“The data is clear: A growing
percentage [currently about 1/3]
of our colleges and universities
are in real financial trouble.”
– The Financially Sustainable University,
July 2012
Source:
www.thesustainableuniversity.com
Reducing University Costs?
• Inefficiency is part of it – but not
all
– Economies of scale?
– Increasing volume?
• To manage means reducing
complexity
• Changing the model means
changing the value proposition
– MOOCs, for example
Source: Adapted from work by Lloyd Armstrong, presented to Council, Nov 2012
Raising Tuition?
• Increasing the real price
decreases access
• Decreasing access reduces
opportunity – bad for
society
• Increasing the real price is
causing rapid growth in
student loans
• We are in trouble with
tuition!
Source: Adapted from work by Lloyd Armstrong, presented to Council, Nov 2012
VALUE PROPOSITION:
CHALLENGE FOR HIGHER EDUCATION
• We’re facing complaints
• Growing demand for
demonstrable outcomes
– Government spending scrutiny
– Students and families concerns
with increasing tuition
• We must increase value
– What we teach: Move beyond
algorithms
– How we teach: Use emerging,
proven techniques
Source: Adapted from work by Lloyd Armstrong, presented to Council, Nov 2012
INNOVATION IN PROCESSES
• Competency-based education
– Defined by panels of experts
– When you display the
competency, you earn the credit
– Changes time to degree
– Enables transfers, comparisons
– Western Governors University
– Bologna Process
Source: Adapted from work by Lloyd Armstrong, presented to Council, Nov 2012
Photo by EarthLED and used under the Creative Commons license. Photo is available here:
BUSINESS MODEL DISRUPTORS
• NUMEROUS POTENTIAL NEW
“UNIVERSITIES”
– MOOCS
• Available everywhere
• Low cost, quality courses “taught” by
famous faculty
• A huge disruptor
– Corporate universities
– Publishers and media companies
– Companies and foundations using
open source materials
Source: Adapted from work by Lloyd Armstrong, presented to Council, Nov 2012
Photo by EarthLED and used under the Creative Commons license. Photo is available here:
BUSINESS MODEL DISRUPTORS
• Accreditation makes entry difficult –
for now
• Lack of some input requirements
• Competency-based outcomes OK
now for accreditation
• Likely to be more institutions
accredited on outcomes soon –
offering essentially free degrees
Source: Adapted from work by Lloyd Armstrong, presented to Council, Nov 2012
Photo by EarthLED and used under the Creative Commons license. Photo is available here:
CONCLUSIONS
• The business model is changing
• Change will not effect all institutions equally
• Professional associations that represent those
institutions, their faculties, and their
graduates will need to move in ways that
reflect that evolution
Source: Adapted from work by Lloyd Armstrong, presented to Council, Nov 2012
Why are we doing it
now?
• Higher education in the midst of disruptive
innovation
• AAA-specific opportunities
–
–
–
–
Board commitment
New council structure
One time financial opportunity
Commitment to fulfill our mission “To further the
discipline and profession of accounting through
education, research and service.”
How are we doing
it?
Our Mission: reevaluated –
and we recommitted to it!
Our timeline:
Major events in 2012-2013
With many, many conference
calls and work sessions!
March 16 –
Council
meeting:
received
input from
Council on
top
suggested
initiatives
Nov
2012 –
Counci
l Kick
off
January
6, 2013 –
Task
Force
Meeting
August 5 –
Panel
session at
the Annual
Meeting
May 15 Initiatives
Refined
April 17 Council
Webinar
Meeting:
Follow up
May 21-23 –
Board
Strategic
Retreat
November
– Finalized
project,
approved
by the
Board
Insights from
Council
Pat Poli
Chair of Council, AAA
Fairfield University
The time is right Insights from the
Finance Committee
Steve Moehrle
VP of Finance - Elect, AAA
University of Missouri – St. Louis
Thanks to strategic decisions
and a great community…
9000
GNP
CIIA
8000
JETA
7000
JLTR
JIAR
API
5000
JMAR
4000
BRIA
JIS
3000
JATA
2000
AJPT
Horizons
1000
Issues
0
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Journals and pages published by the AAA
2011
2012
TAR
journals
pages
6000
When we faced challenges…
we found opportunities
•
•
•
IPTF 1: Recognized the strategic role of “expanding knowledge”
IPTF 2: Recognized the strategic importance of our capabilities to manage
partners
The AAA successfully negotiated with EBSCO
•
So we have a (likely) one-time opportunity to increase revenues
– Continue operations
– Protect a conservative “rainy day” fund
– Make strategic investments to insure a strong future, even if publications change
radically
How should we think about
the publications revenues?
Uses of Publications
Revenues
Current
Model
• Revenues used to fund our
current model
– Approximately $2MM historically
built into the budget
– Budgets usually targeted to be
net neutral
– Require these funds to continue
with the current business model
Presented at the Finance Committee budget meeting,
February, 2013
How to think about the additional
revenues?
Uses of Publications
Revenues
?
?
Current
Model
"Rainy
Day"
Investment
• We are in a time that is
– Exciting
• New models
• New types of IP
• New audiences
– Unpredictable
• Range of revenue models
• Thoughtful balancing of
– Investments for the future
– Preparation for a potential “Rainy
day”
Presented at the Finance Committee budget meeting,
February, 2013
Recommendations for 2013-14
• Support a task force to explore organizational/structural
alternatives
– Focus on capabilities needed to be
•
•
•
•
•
Member value producing
Agile
Efficient
Strategic
Sustainable
– Recognized this would likely require
• Professional support
• Face-to-face meetings
– Budgeted for the task force
The journey –
Task force reports
Expanding
Knowledge and
Idea Development
Steve Kaplan
Council Representative, AAA
Arizona State University
Our Task Force Members
•
•
•
•
•
•
Christine Botoson, University of Utah, Co-Chair,
Steve Kaplan, Arizona State University, Co-Chair,
Bonnie Klamm, North Dakota State University,
Ranjani Krishnan, Michigan State University,
Elaine Mauldin, University of Missouri – Columbia, and
Steve Sutton, University of Central Florida
Our Timeline
Informing and
Influencing
Policy & Practice
Hughlene Burton
Chair-elect of Council, AAA
University of North Carolina at Charlotte
MODEL: Span of Influence
Corporate Accounting
IMA
Controllers, CFO’s
Other Stakeholders
Software firms
Advisory Services
Regulators
FASB
GASB
IASB
NASBA
State Societies
Public Accounting
Big 4
Regional Firms
Smaller Firms
University Administrators
Deans
Provosts
Presidents
AAA
Faculty Members
Department Memberships?
Practice Members
Overview of BIG Idea
• Develop a AAA Center for Education, Research
and Thought Leadership
– Sponsor joint conferences between AAA sections and practitioner and
policy making groups
BIG IDEA – Develop a
AAA Center for Education, Research
and Thought Leadership
• Value Proposition
– Currently there is no single place for someone from
practice or policy makers or for AAA members to find
information relating to academic research or
educational materials. This center would promote
many of the ideas provided by the individual groups
inside the AAA. By establishing a center to birth,
nurture and house the ideas, the center can begin
from a modest base and grow in whatever direction
the challenge that lie ahead direct us.
BIG IDEA – AAA Center for Education,
Research and Thought Leadership
• Some examples of things this Center could do
– Joint Conferences with Practice and Policy
Makers
– Repository of Online Educational Resources
(OER) –
– Think Tank focused on practice / professional
challenges
– BIG DATA and Qualitative Analysis
Promote Joint Conferences
• Value Proposition
– Currently there are few opportunities for faculty
and practicing accountants to interact. As a result,
there are concerns that our research isn’t relevant
because faculty don’t know enough about current
issues in practice; and practicing accountants
don’t have access to (or visibility of) current
research to inform their efforts.
Promote Joint Conferences
• Benefits
– This would allow AAA members to partner with practice to do
research and hold discussions that would be a benefit to both
policy and practice. This is also a way that we could partner
with practice globally as well. Many of the practice and policy
organizations are global/international. We could have different
themes for these conferences. Also could partner with some of
our AAA section journals to have publication outlets for some of
the papers/research from these conferences that could be
disseminated to a wider audience than can attend the
conferences. This would also help with one of our other
proposals to focus more academic research on relevant practical
issues for policy and practice.
– Suggestion for first conference – BIG DATA
BIG DATA and Qualitative Analysis
• Value Proposition
– This is one of the biggest problems facing the
accounting profession today. Society faces problems
with accounting for health care, federal budgets,
etc. Many of these problems relate to BIG DATA and
how to analyze these large and cumbersome
systems. This would be a great place for the AAA to
get involved in some important societal questions and
make an impact on practice and policy makers.
Repository of Online Educational
Resources
• Value Proposition
– These would be short topical video segments
available to AAA/Practice for use in class or by
practitioners in their training. Created from
practice and educational point of view. Could
have global reach to many users. Free for AAA
members, with some cost to others.
Promoting Effective
Learning
and
Advancing Faculty
Careers
Julie Smith David
Chief Innovation Officer, AAA
Promoting Effective Learning
Realize faculty growth at all stages
Help faculty
learn about
future
capabilities
Doctoral
student
New
faculty
Newly
tenured
Senior
scholar
Close to
retiring
Emeritus
#2 Educating the Membership
Knowledge is Power!
sample rec’s
• Accounting Faculty of the
Future Panels
– Annual meeting
– Midyear and regional
meetings
• Centers for Research Databases
and/or Centers for Faculty
Development and Teaching
Excellence
• Member/institutional empowerment
Where we are – and
where we’re headed
Julie Smith David
Chief Innovation Officer, AAA
continuity
concentrated voice
faculty development
value to members, segments, and
the accounting academy as a whole
reimagining our core
external engagement
impact
balanced member:staff roles
Reflections on SoV!
leverage
teaching
increasing the size of the pie
sustainability
policy recommendations
research
sharing
efficiency
integration
decentralization overload
“Go To” organization
two-way communications with external entities
concerned with practice
leaders
How to flesh out the idea?
• Develop the initiatives from the SoV
recommendations
• Professional assistance
• Engage our members
–
–
–
–
sharpeningourvision.com
Section and region meetings
Webinars
Accounting Education News updates
• Establish two new task forces
Continuing through
SoV Task Force: Chaired by Karen Pincus (Past President)
A. Strategic Initiatives
Task Force
– Focus on strategic initiatives
• Especially “Big Ideas”
• Potentially creating a
“Center” (or some other
new structure for new
initiatives)
– Chair: Christine Botosan
(AAA president-elect)
– Staff Liaison: Julie Smith
David
– Seek professional
assistance
B. Strategic Organization
Task Force
– Recognized by the Finance
Committee and Board
– Focus on changes to enable
transformation
• Eliminate roadblocks
• Work with segments
– Examples
• Make all journals available to
members
• Webinars
– Chair: Stacy Kovar (former VP
Finance)
– Staff Liaison: Dave Frazier
(Interim CFO)
Feedback?
Questions?
Mike Diamond
Past President of the AAA
University of Southern California