Academia And Business
If I recall correctly, it was in the 1980s, during the Thatcherite and Reaganomics era, that the notion that businesses were inherently efficient came to the fore. The contrast class to this claim was that governmental and similar arrangements were supposed to be inherently flawed. The rise of this pair of claims had the effect, and still has the effect, of making the idea that the adoption of business principles popular as a means of reforming institutions, including academic ones.
This phenomenon is seen from time to time on campuses when administration types come up with 'bright' ideas, like departments developing 'business plans'. The same set of values also appears to motivate the current epidemic of private consultants from industry being hired for their advice. My contention here, is that these are a fundamentally misguided set of ideas.
The goal of a business, or a corporation is to make money, or at the very least (for public entities) to increase shareholder value. Thus, a fiscal measure is the simple metric of success in this environment. There is nothing intrinsically problematic with this, unless this metric is applied in the wrong circumstance. It seems to me that academia is an environment where this measure is really a very poor fit.
The first thing to keep in mind is that there has been a history of businesses and corporations indulging in questionable practices in order to achieve their goals. The history of the downfalls of Enron, Worldcom, Arthur Anderson and similar organisations stand in mute testimony to how the profit motive can lead to bad choices. Of course, the recent list of corporate scandals provides many more instructive examples. In each of these cases, ethical considerations were given a secondary role to pecuniary advantage. This should be a red flag that there is an incompatibility between academic values and business values.
One of the most important virtues in the academic world is (or at least, should be) high ethical standards. We expect (hope?) that students will not plagiarise. We assume that researchers do not falsify their results. While there are some checks and balances in place and there have occasionally been some well publicised cases of fraud, by and large trust is the main currency in the Ivory Tower. Without this, we would spend more time checking up on one another, than actually doing any productive work. So, if an assumption of high ethical standards is fundamental to academia and the world of business does not adhere to these same standards, then there is an intrinsic problem with any attempt to graft business practices into the academic environment.
There is also a deeper confusion which lies at the heart of the assimilation of business values into academia. In business, value can be measured in monetary terms. However, such a measure is not applicable in academia. What is the 'value' of a good paper in a first rate journal? How many dollars should be applied to inspiring a student to pursue further study of a subject? There have been naive operationalist attempts at quantifying such things, but the results are at best laughable. More abstract values associate with academia, like the value associated with a well educated populace, that is skilled in critical thinking, are impossible to measure in a manner similar the the simplistic monetary metric. The point crucial point here is that there are many kinds of values. These values cannot be reduced to one another.
Now, this is not supposed to mean that academia should be permitted to engage in fiscal irresponsibility. Deans and other administrators have to ensure that units operate within budgetary guidelines and in a sensible manner. However, these guidelines merely provide the parameters within which the broader goals of increasing knowledge and educating the populace have to be achieved. These latter goals should always have precedence.
Thus, the attempt to use the business model in academia is doomed to failure, at least in terms of being a method for achieving academically proper goals. While people insist upon trying to enforce the ideology of business in academic circles, the results can only be detrimental to the main goals of academic institutions. So, such attempts should be resisted by every means possible.
The CP
This phenomenon is seen from time to time on campuses when administration types come up with 'bright' ideas, like departments developing 'business plans'. The same set of values also appears to motivate the current epidemic of private consultants from industry being hired for their advice. My contention here, is that these are a fundamentally misguided set of ideas.
The goal of a business, or a corporation is to make money, or at the very least (for public entities) to increase shareholder value. Thus, a fiscal measure is the simple metric of success in this environment. There is nothing intrinsically problematic with this, unless this metric is applied in the wrong circumstance. It seems to me that academia is an environment where this measure is really a very poor fit.
The first thing to keep in mind is that there has been a history of businesses and corporations indulging in questionable practices in order to achieve their goals. The history of the downfalls of Enron, Worldcom, Arthur Anderson and similar organisations stand in mute testimony to how the profit motive can lead to bad choices. Of course, the recent list of corporate scandals provides many more instructive examples. In each of these cases, ethical considerations were given a secondary role to pecuniary advantage. This should be a red flag that there is an incompatibility between academic values and business values.
One of the most important virtues in the academic world is (or at least, should be) high ethical standards. We expect (hope?) that students will not plagiarise. We assume that researchers do not falsify their results. While there are some checks and balances in place and there have occasionally been some well publicised cases of fraud, by and large trust is the main currency in the Ivory Tower. Without this, we would spend more time checking up on one another, than actually doing any productive work. So, if an assumption of high ethical standards is fundamental to academia and the world of business does not adhere to these same standards, then there is an intrinsic problem with any attempt to graft business practices into the academic environment.
There is also a deeper confusion which lies at the heart of the assimilation of business values into academia. In business, value can be measured in monetary terms. However, such a measure is not applicable in academia. What is the 'value' of a good paper in a first rate journal? How many dollars should be applied to inspiring a student to pursue further study of a subject? There have been naive operationalist attempts at quantifying such things, but the results are at best laughable. More abstract values associate with academia, like the value associated with a well educated populace, that is skilled in critical thinking, are impossible to measure in a manner similar the the simplistic monetary metric. The point crucial point here is that there are many kinds of values. These values cannot be reduced to one another.
Now, this is not supposed to mean that academia should be permitted to engage in fiscal irresponsibility. Deans and other administrators have to ensure that units operate within budgetary guidelines and in a sensible manner. However, these guidelines merely provide the parameters within which the broader goals of increasing knowledge and educating the populace have to be achieved. These latter goals should always have precedence.
Thus, the attempt to use the business model in academia is doomed to failure, at least in terms of being a method for achieving academically proper goals. While people insist upon trying to enforce the ideology of business in academic circles, the results can only be detrimental to the main goals of academic institutions. So, such attempts should be resisted by every means possible.
The CP