Prospects of ACBSP/ IACBE Merger?

Discussion in 'Business and MBA degrees' started by BIGA, May 16, 2013.

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  1. BIGA

    BIGA Member

    This article is an excerpt from ACBSP’s April report to its membership.

    In it ACBSP Executive Director, Doug Viehland is proposing a merger between ACBSP and IACBE.

    IACBE discussed here as a possible take-over target, is a newer organization than ACBSP, with a smaller membership and less successful growth pattern.

    Doug Viehland:
    This issue of ACBSP Update is being released concurrent with the Annual Conference and Assembly Meeting of the International Assembly for Collegiate Business Education (IACBE). ACBSP is on the agenda for the meeting of their Board of Directors as they consider an invitation from ACBSP to begin discussion of combining opportunities. This is information for our readers and for IACBE members at their ACAM.

    In 2003, the ACBSP leadership first proposed to IACBE that there would be value if the
    two accreditation bodies focused on teaching excellence in business schools were brought together to create one accrediting body. A combined organization would avoid duplication, eliminate competition, and create a stronger membership base to advance the causes of our two organizations which are quite similar in purpose. The invitation to enter into these discussions was declined by IACBE.

    During the September 2012 meeting of the ACBSP Board of Directors, President Peter
    Horn was asked to initiate these discussions again. Information was exchanged with IACBE Chair Clara Munson over a period of months. This included a white paper which defined what was envisioned in the combining opportunity.

    I think I can safely say no one on the ACBSP side will be dramatically disappointed if the invitation is not accepted. It will be like it was in 2003 — a missed opportunity. In my many discussions with many persons, few are able to explain why there is a need for two groups to serve what is essentially the same market. Both organizations are weakened without the synergy that would be achieved by having both organizations combined. Both organizations share similarities in our history, focus on outcomes assessment, fiscal year, governing board structure, geographical location, qualities of our members, and regional organizations. I could go into more detail but that would mean a more lengthy report. I will focus on some of the differences that may or may not be barriers.

    Our accreditation processes are very similar as are the standards and criteria, but there are differences. How to integrate the accredited members of both organizations into one organization will be a focus of discussion at the ACBSP Board of Commissioners meetings this week in Kansas City. Approval from CHEA will be required.

    One of the differences includes the size of both organizations which for ACBSP is a source of pride. In 2003, ACBSP membership was 378 member campuses and approximately 350 institutions. While I do not have the exact numbers, I recall the IACBE membership in 2003 was between 250 and 300 institutions. In 2013, ACBSP membership has grown to 1,171 campuses and 574 institutions while IACBE membership is smaller now, thought to be between 200 and 250 members. ACBSP has grown while IACBE has become smaller. This can be a great reason for combining or it can be a barrier.

    In 2003, the ACBSP Annual Conference had 390 persons in attendance and featured seven exhibit booths. Our conference in June will have more than 900 individuals in attendance, while I anticipate the IACBE attendance this week will be approximately 250 persons.

    Our exhibit areas in June will feature 30 exhibitors while about 10 are expected at ACAM in Orlando this week. The IACBE conference registration fee for members is $595 or $695 depending on the date of registration, while ACBSP’s member fee is either $550 or $650. To compare what each conference offers and judge the value of each, one can compare what is offered in the IACBE conference promotional booklet versus what is offered in the ACBSP conference promotional booklet. The differences speak to the value offered by ACBSP. Our staff size is 11 in the ACBSP headquarters office in Overland Park, Kan., while IACBE has five staff members. ACBSP owns its condo office space without a mortgage. IACBE is renting office space in nearby Lenexa.

    Another difference that can be a barrier for discussions is membership qualifications and dues structure. ACBSP requires regional accreditation for members in the U.S.A. and documented government approval for schools outside the United States, while IACBE does not have such a qualification standard and membership is open to “any academic business unit whose parent institution grants business degrees at the bachelor’s, master’s, or doctoral level…” Several IACBE members will be adversely impacted unless ACBSP lowers its standards. Other persons adversely affected will be individual members who enjoy some IACBE membership benefits without the requirement that a campus be a member. These would be points of discussion.
    Our membership dues are based on the number of campuses — IACBE dues are not. A small number of IACBE members would find increased dues amounts and the differences may be dramatic. However, the large majority of IACBE members would see their annual dues amount reduced by about $1,000 if the ACBSP membership dues model is adopted. ACBSP membership dues are $1,350 for members and $1,950 for accredited members. IACBE annual membership dues are $2,450 for members and in 2014 the IACBE dues for accredited members will be $2,950.

    The savings will be even greater for the approximately 20 members who are members of both organizations as only ACBSP membership will be budgeted rather than dues to both organizations. Only one reaffirmation will be required, not two which is the current situation for them. There will also be savings for the approximately seven exhibitors in Orlando who are also exhibitors at our conference in June because a combined organization would result in a combined conference and only one payment to travel and exhibit. It is my hope there will be a definite decision from discussions by the IACBE Board in Orlando. If the decision is to decline the invitation to discuss, it can be put aside again for another number of years, but maybe not nine years. If the decision is to accept, I hope the progress will move more quickly than it has at this point in time. I invite comments from ACBSP members or IACBE members regarding what is being proposed. I have shared with you my thoughts as Executive Director.
     
  2. Ted Heiks

    Ted Heiks Moderator and Distinguished Senior Member

    Nope......
     

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