“The SJSU College of Business is the institution of opportunity, providing innovative business education and applied research for the Silicon Valley region.”

[College of Business Mission Statement]

“If you don’t know where you are going, you’ll never get there.”

[attributed to Yogi Berra]

This is the third annual Strategic Plan, each covering a period of five years. This one is somewhat of a departure from the first two. First, it covers the fiscal/academic years - July 1 through June 30, of the following year - rather than the calendar year. Second, while the Plan covers a period of five years, the focus is on the first year – July 1, 2003 through June 30, 2004. Third, it contains budget information concerning expected revenues and expenditures. Fourth, the format is significantly different, hopefully making it easier to follow and more like plans that one would find in the business community. Fifth, plans will be presented at the departmental as well as at the college level. All five changes arise from the feedback obtained from the Planning Sub-Committee of the College’s International Board of Advisors.

There is another factor that has changed as well, but one that is outside of our control. This is the very high level of uncertainty regarding the level of the State’s funding of the CSU system, which obviously affects the amount that will be filtered down to the College of Business. Thus we are very likely to face the rather awkward situation of knowing that we will have to commit the vast majority of our funds before we know the amount we have to commit. Nevertheless, we will present a budget, indicating the assumptions upon which the budget is based, and if we have to cut expenditures further, from whence the cuts will come.

The Plan has several overarching objectives, and these have not changed: to enhance the reputation of the College of Business (CoB) and San José State University (SJSU); to provide programs and services to our students that enable them to learn as well or better than they could at any other post-secondary institution they might attend; to provide graduating students, programs, research results, and other services to the communities we serve that best meet their needs; and to enhance the well-being of our faculty and staff. In brief, we should strive to maximize the value added by the College of Business to our students, faculty, staff, institution and the communities that we serve, subject to resource constraints. To accomplish the above we should strive to increase our resources to the extent possible.

The current Strategic Plan rests not only on past studies and plans, but on plans that each of the four departments has developed. The latter can be obtained from our website - www.cob.sjsu - or by contacting the Deans’ Office, College of Business.

This document commences with an Executive Summary, which states our priorities. Following that are five sections entitled: Teaching, Research, Service, Image and Resources. While the distinctions appear clear, many of the issues raised are highly interdependent. This will be noted whenever possible.

Executive Summary

This summary provides an overview of the Strategic Plan, grouping specific items into general categories, and establishing priorities for the latter. The Plan itself is a series of action statements that indicate what it to be accomplished, by when, and who has the responsibility. In a number of instances several people are held responsible since all have a significant part to play in the execution of the action.

The top priority for 2003-04 is to ensure that our curricula are up-to-date and relevant to both our students and their potential employers. To be succinct, we want our curricula to be as good as they can be, subject to the financial constraints we face. This includes doing what we can to make sure that our graduates possess the basic communication and analytical skills that will be needed if they are to be successful. Having excellent curricula also involves coordinating the sections within a given course to ensure that no matter who is teaching the course the material covered will be roughly the same. Consistency among sections within a given course is as important as consistency across courses within a given program.

A high quality education requires that we provide an excellent learning environment, our second priority. This involves supporting our faculty wherever possible so that they can become better teachers. It also suggests that we have available and make use of educational technologies that enhance the learning process. And quality comes not only from course content, but from experience as well. Included here are opportunities for study abroad, internships, and working with others who have different backgrounds and capabilities.

Current curricula and a top notch learning environment cannot exist without the necessary resources. Since the State of California is going to be supplying an increasingly smaller proportion of the cost of educating our students, we have to find other sources of support to overcome this growing gap. One way is to increase the net revenue from our fee-based programs. Like any business this can be done in three ways: increase our customer base, increase our prices, and decrease our costs. We will be working on all three fronts. In addition we will be increasing our efforts at fund raising.

Research makes an important contribution to our ability to offer an up-to-date education by helping define what “up-to-date” means. Research output also enhances our image as results are disseminated throughout the academic community. A strong research program should enhance our ability to obtain grants and contracts, which in turn further our ability to do high quality research. Overhead from contracts and grants help provide additional, though not large, revenue.

The final item is closely linked with all of the above, and that is improving our image among our stakeholder groups: students, alumni, faculty and staff, the academic community, employers of our students, and the community at large. Clearly excellence in education and research help our image, but only if in fact others know about that excellence. Getting the word out plays a major role in our Plan.

Strategic Plan: 2003-2008

Teaching (T)

Historically teaching has been the primary focus of San José State University. While faculty research has come into prominence relatively recently, the emphasis on teaching has not diminished. In terms of planning, teaching essentially covers: curricula – ensuring that they are current and relevant to both our students and those who will employ them, faculty – ensuring that they are effective teachers and mentors and provided with the proper support, facilities and services – ensuring that they create a proper learning environment and that they permit our teachers to educate and our students to learn using whatever teaching method is deemed to be most appropriate, and students – ensuring that the quality of the students we graduate is such that we can be proud of them and their achievements.

We will cover each of the four areas in the order mentioned. We begin with plans at the departmental level, proceeding to college-wide issues. Plans will be described below noting the intended latest date of execution and the person and/or groups responsible for the completion of the action. These will be repeated in a spread-sheet format in the appendix. The following notations will be used to identify the unit to which the plan applies: A&F – Department of Accounting and Finance, MIS – Department of Manage-ment Information Systems, Mktg – Department of Marketing, O&M – Department of Organization and Management, CoB – College of Business.

Curricula (C)

Accounting and Finance

Objective: to ensure that accounting students will be well prepared to pass the “new CPA examination.”

Budget Implications: none.

A&F-TC1: appoint a “curriculum-in-practice” task group representing faculty and practitioners to develop and manage an operational plan to assure compliance with the following six action statements.

1 January 2004; Department Chair

A&F-TC2: identify the implications of the “new CPA examination” on the accounting curriculum, and frame strategies and implementation dates for necessary curriculum changes.

1 July 2004; Curriculum-in-Practice Task Group, Department Chair

A&F-TC3: transform the accounting curriculum from “traditional rule-based training” to educating “disciplined problem solvers.”

1 July 2008; A&F Accounting Curriculum Committee, Department Chair

A&F-TC4: demonstrate the development of “higher order cognitive skills” across all accounting and finance programs.

1 July 2008; all A&F Curriculum Committees, Department Chair

A&F-TC5: demonstrate the development of interpersonal, communication and professional skills across all accounting and finance programs.

1 July 2008; all A&F Curriculum Committees, Department Chair

A&F-TC6: achieve a significant measurable increase in the use, across all accounting and finance programs, of the following teaching methods - team projects, oral reports, out-of-class learning experiences (e.g. internships, practicums) - for all accounting and finance programs.

1 July 2006; all A&F Curricula Committees, Department Chair

A&F-TC7: achieve a measurable change in the following skills of all accounting and finance graduates: research, use of technology, ethical reasoning.

1 July 2008; all A&F Curricula Committees, Department Chair

Management Information Systems

Objectives: to ensure that the MIS curriculum is coherent, up-to-date and relevant.

Budget Implications: none.

MIS-TC1: develop a framework to map the interconnections among the courses of the MIS curriculum, the continuity of the concepts covered, and the means for feedback from students, faculty, alumni and employers.

1 January 2004; Art Walton, Jeff Gaines, Department Chair

MIS-TC2: move BUS 93 - Systems Analysis and Design - from lower division to upper division.

1 January 2004; MIS Curriculum Committee, Department Chair

MIS-TC3: change BUS 113J - Java Programming - into an intermediate/advanced course on Java.

1 January 2004; MIS Curriculum Committee, Department Chair

MIS-TC4: enhance BUS 116 - Advanced Database Management Systems (DBMS) - to cover comparative DBMS.

1 January 2004; MIS Curriculum Committee, Department Chair

MIS-TC5: increase and enhance the assignments that use the Cisco lab for courses BUS 110 - Fundamentals of MIS, and BUS 115 – Strategy and Telecommunications.

1 July 2004; Subhankar Dhar, Richard Perez, MIS Curriculum Committee, Department Chair

MIS-TC6: determine the feasibility of MIS students obtaining a minor in Computer Science.

1 July 2004; Subhankar Dhar, Richard Perez, Department Chair

Marketing

Objectives: to ensure that the College’s students possess the requisite basic skills, and that the marketing curriculum is up-to-date and relevant.

Budget Implications: none.

Mktg-TC1: prepare and submit a proposal to require all business majors to take a course in business calculus.

1 January 2004; decision science faculty

Mktg-TC2: conduct a complete assessment of BUS 100W – Business Communications, recommending changes where appropriate.

1 January 2004; Business Communications Group, Department Chair

Mktg-TC3: conduct a complete assessment of BUS 130 – Introduction to Marketing, recommending changes where appropriate.

1 July 2004; Marketing Curriculum Committee, Department Chair

Mktg-TC4: conduct a complete assessment of BUS 134A – Customer Behavior and BUS 134B – Integrated Marketing Communications, recommending changes where appropriate .

1 January 2005; Marketing Curriculum Committee, Department Chair

Mktg-TC5: conduct a complete assessment of BUS 139 – Marketing Management, recommending changes where appropriate.

1 July 2005; Marketing Curriculum Committee, Department Chair

Mktg-TC6: develop and implement a course in high-tech marketing.

1 July 2005; Marketing Curriculum Committee, Department Chair

Organization and Management

Objectives: to enhance O&M’s offerings in two niche areas (Entrepreneurship and Global Enterprise Management), and to ensure that the management curriculum is up-to-date and relevant.

Budget Implications: none.

O&M-TC1: conduct a complete assessment of the International Business/Global Enterprise Management concentration, recommending changes where appropriate.

1 July 2004; International Business Group, Department Chair

O&M-TC2: develop and propose an International Business minor.

1 July 2005: International Business Group, International Business Curriculum Committee, Department Chair

O&M-TC3: develop and propose a curriculum covering Entrepreneurship.

1 July 2004; Entrepreneurship Group, Undergraduate Curriculum Committee

O&M-TC4: develop and propose a course on Introduction to Entrepreneurship/ Intrapreneurship.

1 July 2004; Entrepreneurship Group, Management Curriculum Committee. Department Chair

O&M-TC5: clarify the learning objectives for the Management Concentration and the courses that comprise it.

1 July 2004; Management Group, Management Curriculum Committee, Department Chair

College of Business

Objectives: to ensure that the College’s students possess the requisite basic skills; that the community colleges are offering courses that are equivalent to ours; that our curricula are up-to-date and relevant; and that the core courses are taught consistently and the material therein is highly relevant to the undergraduate concentrations.

Budget Implications: course buyouts for remedial education - $20,000; survey materials - $2,500.

CoB-TC1: develop and implement an effective means of remedial education for those who fail the Writing Skills Test (WST).

1 July 2004; Assoc. Dean Academic & Undergrad. Affairs

CoB-TC2: develop and implement a test to measure analytical skills.

1 January 2004; Assoc. Dean Academic & Undergrad. Affairs

CoB-TC3: develop and implement an effective means of remedial education for those who fail the Analytical Skills Test.

1 July 2004; Assoc. Dean Academic & Undergrad. Affairs

CoB-TC4: hold annual meetings between the appropriate College of Business and local community college faculty to ensure that course content in articulated courses is equivalent.

1 January 2004 on; Assoc. Dean Academic & Undergrad. Affairs

CoB-TC5: survey the employers of our students regarding the quality and relevance of their undergraduate/graduate education.

1 July 2004; Assoc. Dean Academic & Undergrad. Affairs, Assoc. Dean Grad. Studies and Research, Dean

CoB-TC6: survey our alumni regarding the quality and relevance of their undergraduate/ graduate education.

1 July 2005; Assoc. Dean Academic & Undergrad. Affairs, Assoc. Dean Grad. Studies and Research, Dean

CoB-TC7: have the International Board of Advisors and/or its sub-committee on Curricula review all curricula over a three year period for relevance, currency and quality.

1 July 2004 on; International Board of Advisors, Dean

CoB-TC8: assure that all curricula provide adequate and appropriate coverage of the College of Business’s three niche areas – Entrepreneurship/Intrapreneurship, Global Enterprise Management, and High Technology Management.

1 July 2004; Niche Area Groups, Undergraduate Curriculum Committee, Graduate Curriculum Committee, Assoc. Deans, Dean

CoB-TC9: assure that all curricula provide adequate and appropriate coverage of ethics.

1 July 2004; Undergraduate Curriculum Committee, Graduate Curriculum Committee

CoB-TC10: develop and implement at least one new graduate level Certificate Program each academic year commencing with academic year 2004-05.

1 January 2005 on; Assoc. Dean for Grad. Studies and Research

CoB-TC11: ensure that there are Course Coordinators for each course that has sections taught by two or more faculty members.

1 January 2004 on; Department Chairs, Assoc. Dean Academic & Undergrad. Affairs

CoB-TC12: coordinate the sections of each course that has sections taught by two or more faculty members so that they know what they are expected to teach, test, etc.

1 July 2004 on; Course Coordinators, Department Chairs

CoB-TC13: design and implement a system for defining common content for each and every core course.

1 July 2004; Undergraduate Curriculum Committee, Graduate Curriculum Committee, Assoc. Deans

CoB-TC14: evaluate and make changes as needed for the system for defining common content for each and every core course.

1 July 2004; Undergraduate Curriculum Committee, Graduate Curriculum Committee, Assoc. Deans

Faculty (F)

Accounting

Objective: to help faculty become better teachers.

Budget Implications: none.

A&F-TF1: re-establish the informal coaching program for faculty.

1 July 2004; Department Chair

Management Information Systems

Objectives: to improve the teaching of required courses and lower the burden on those faculty members who teach them.

Budget Implications: none.

MIS-TF1: improve support to instructors who are teaching required courses by means of a more detailed MIS curriculum framework, course syllabus templates, exam question databases, frequent meetings, etc.

1 July 2004; MIS Curriculum Committee, Department Chair

MIS-TF2: increase the number of MIS faculty involved in Community Service Learning (CSL) activities for their students.

1 July 2004; Department Chair

Marketing

Objective: to provide an MIS faculty member with real world experience that can be brought into the classroom.

Budget Implications: to be financed via fund-raising.

Mktg-TF1: establish at least one faculty internship that can be used to enhance the educational mission of the department.

1 July 2005; Richard Werbel, Department Chair

Organization and Management

Objective: to increase community service learning.

Budget Implications: none.

O&M-TF1: increase the number of O&M faculty involved in Community Service Learning (CSL) activities for their students.

1 July 2004; Department Chair

College of Business

Objectives: to provide financial support to enhance teaching and to reward excellent teachers.

Budget Implications: to be financed via fund raising.

CoB-TF1: establish at least one summer teaching fellowship each year for a four year period to provide the time and financial support required to develop new courses, radically revise existing courses, and prepare new delivery systems.

1 July 2004 on; Dean

CoB-TF2: establish at least one endowed Professorship or Chair each year over the next three years to which outstanding teachers can be appointed.

1 July 2005 on; Dean

Learning Environment (E)

Management Information Systems

Objective: to increase the efficiency and effectiveness of teaching MIS courses.

Budget Implications: none.

MIS-TE1: seek to have BBC 301 designated as the MIS lab and schedule MIS classes accordingly.

1 January 2004; Department Chair, College Space Committee

MIS-TE2: ensure that all software needed for MIS classes scheduled for BBC 301 is available to the computers in that lab.

1 January 2004; Andy Yeung, Department Chair

Marketing

Objective: to broaden the experience of both students and faculty.

Budget Implications: may require travel support.

Mktg-TE1: establish and implement linkages (exchanges, joint programs, joint research, etc.) with two universities in Asia.

1 July 2004; Department Faculty, Department Chair

College of Business

Objectives: to provide and make use of the latest computer-based technology; to enhance our students’ learning experience outside of the classroom.

Budget Implications: none as the funds involved will come from student computer usage fees.

CoB-TE1: ensure that the computing equipment in college of business classrooms and labs is less than three years old.

1 January 2004 on; Andy Yeung, Dean

CoB-TE2: increase and verify that the proportion of our undergraduate and graduate courses that rely heavily (but not necessarily exclusively) on web-based technology is at least 10%.

1 January 2004; Assoc. Dean Academic and Undergrad. Affairs, Assoc. Dean Grad. Studies and Research.

CoB-TE3: increase and verify that the proportion of our undergraduate and graduate courses that rely heavily (but not necessarily exclusively) on web-based technology is at least 25%.

1 January 2007; Assoc. Dean Academic and Undergrad. Affairs, Assoc. Dean Grad. Studies and Research.

CoB-TE4: actively support all business student clubs and fraternities; ensure that each such organization has an active faculty advisor/mentor.

1 January 2004; Chairs, Deans

Student Quality (S)

College of Business

Objective: to improve the quality of our student input and output; to increase the amount of financial support we provide our students; and to ensure top educators teach our graduate programs.

Budget Implications: to be financed via fund raising.

CoB-TS1: increase the number and value of awards for outstanding academic performance by our students.

1 July 2004; Dean

CoB-TS2: increase the number and value of scholarships for entering students.

1 July 2004; Dean

CoB-TS3: expand the number of student internships by 10% per year over the next five years.

1 July 2004; Career Services, Chairs, Deans

CoB-TS4: increase admission standards either by advancing significantly the cutoff date for applicants and/or impaction.

1 July 2004; Assoc. Deans, Dean

CoB-TS5: determine the desirability and feasibility of developing an undergraduate honors program.

1 July 2004; Undergraduate Curriculum Committee, Assoc. Dean Academic and Undergrad. Affairs

CoB-TS6: determine the desirability and feasibility of developing a graduate faculty.

1 July 2004; Chairs and Deans

CoB-TS7: develop and offer required “gateway” courses for each upper-division concentration to ensure that students have the capabilities to handle the concentration.

1 July 2005; Department Curriculum Committees, Department Chairs, Associate Dean Academic and Undergrad. Affairs

Research (R)

Research productivity is the basis of the reputations of a great many universities and the business schools within them. The main reason that research output plays such a role is that results are disseminated world-wide, whereas the knowledge of teaching excellence typically remains within an institution. Furthermore, there is a wide-held belief that since research is the creation of new knowledge, excellent research is a prerequisite to excellent teaching if students are to be current in their field. While the role that research should play is a hotly debated topic, it is difficult for a college or university to ignore its impact on the reputation of the institution. Hence, as long as we are concerned about our reputation, we need to be concerned about research productivity. Additionally, research is playing an increasingly important role in the promotion and tenure decisions of our faculty.

There are two additional factors we cannot ignore. One is that the Association to Advance Collegiate Schools of Business (AACSB) accreditation is based on research productivity as well as teaching and service. Fortunately this is now at the unit (i.e. College of Business) rather than individual faculty member level so that a college may have some people who primarily teach and others with excellent research credentials as long as the balance is acceptable. The other is the pride that a number of our faculty have in their research capabilities and output. Supporting research is an essential component of faculty retention. We will consider research in terms of output, grants and contracts, and research centers.

Output (O)

College of Business

Objectives: to foster a supportive research environment; to enhance our reputation by means of published research; to reward excellent researchers; and to encourage collaborative research.

Budget Implications: working paper series - $2,500; reward excellent researchers – to be financed via fund raising.

CoB-RO1: establish at least one monthly research colloquia within the College of Business.

1 January 2004; Department Chairs, Assoc. Dean for Grad. Studies and Research, Dean

CoB-RO2: establish a college-wide working paper series.

1 July 2004; Assoc. Dean for Grad. Studies and Research, Dean

CoB-RO3: achieve an annual peer reviewed publication rate of one article per tenured and tenure-track faculty member for the college as a unit.

1 July 2005; Department Chairs, Assoc. Dean for Grad. Studies and Research, Dean

CoB-RO4: increase the number of articles in top tier journals each year for a five year period starting in academic year 2004-05.

1 July 2005 on; Department Chairs, Assoc. Dean for Grad. Studies and Research, Dean

CoB-RO5: increase the number of research projects that are undertaken collaboratively with faculty members across departments, colleges and universities.

1 July 2005; Department Chairs, Assoc. Dean for Grad. Studies and Research, Dean

CoB-RO6: increase the number of research projects that are undertaken collaboratively with industry each year for a three year period commencing academic year 2003-04; this would include faculty internships within industry.

1 July 2004; Department Chairs, Assoc. Dean for Grad. Studies and Research, Dean

CoB-RO7: complete implementation of faculty consulting and research directory.

1 July 2004; Department Chairs, Assoc. Dean for Grad. Studies and Research, Dean

CoB-RO8: establish at least one endowed Professorship or Chair each year for a five year period to which outstanding researchers can be appointed.

1 July 2004 on: Dean

Grants and Contracts (G)

College of Business

Objectives: to increase the research activity within the college and the overhead rebate.

Budget Implications: a minor increase in revenue that depends on the overhead percentage obtained.

CoB-RG1: increase the dollar value of grants and contracts over that of academic year 2002-03 by 50% in academic year 2004-05.

1 July 2005; Assoc. Dean for Grad. Studies and Research, Dean

CoB-RG2: increase the dollar value of grants and contracts over that of academic year 2002-03 by 100% in academic year 2007-08.

1 July 2008; Assoc. Dean for Grad. Studies and Research, Dean

Centers, Niches (C)

College of Business

Objectives: to establish a focal point for research, service and teaching in each of the niche areas.

Budget Implications: initially there are likely to be course buyouts - $24,000; eventually the costs should be covered by research contracts and grants.

CoB-RC1: establish a research center for high technology management.

1 July 2005; Assoc. Dean for Grad. Studies and Research, Dean

CoB-RC2: establish a research center, or a college-based sub-unit of a university-wide center or institute, for global enterprise management.

1 July 2005; Assoc. Dean for Grad. Studies and Research, Dean

Service (S)

Service is an essential component of what we do for in fact a university is a service organization. Our intention is to serve well each of our stakeholder groups: students, faculty and staff, the university as a whole, the local business community and community at large. Our effectiveness is doing so is the major reason we refer to the College as “THE Business School of Silicon Valley.” Since service is well engrained in what we do, our plans contain only changes and/or extensions.

Accounting

Objectives: to increase the image of both the department and the college, and to increase the net revenue so obtained.

Budget Implications: a minor increase in revenue to A&F.

A&F-S1: increase the attendance of the High Technology Tax Institute by 15% each year to achieve a doubling of the attendance in academic year 2002-03 by academic year 2007-08

1 July 2004 on; Stu Karlinski

A&F-S1: increase the attendance of the Silicon Valley Financial Management Institute by 15% each year to achieve a doubling of the attendance in academic year 2002-03 by academic year 2007-08.

1 July 2004 on; Joe Mori

Image (I)

The ingredients of a College’s image include: the quality of its faculty, the quality of its graduating students, the programs and courses offered by the College, and the extent to which the College effectively serves its communities. We have excellent faculty. Many of our graduates have been extremely successful. Most of our programs are very popular and are highly regarded. The College serves the Silicon Valley community in a great many ways, perhaps the most important of which is that we are a very efficient and effective provider of post-secondary education. No one in the region can do a better job of adding value to those whom we educate, and we pay particular attention to educating them to meet the needs of Valley industries.

High quality and excellent performance by themselves are not sufficient. The external world has to be aware of that quality. Hence hand-in-hand with a focus on quality has to be an effective communications plan. Outcomes of an improved image for the College of Business should be better access to resources and an improved reputation of San José State University, which in turn will further the goals of the College of Business.

College of Business

Objective: to enhance the reputation/image of the College.

Budget Implications: an unknown increase in revenue via an increase in demand for the fee-based programs; retention of an advertising/public relations firm and printing - $70,000.

CoB-I1: develop a communications plan for the College of Business, one that includes how we can take much greater advantage of our public relations opportunities.

1 January 2004, Dean

CoB-I2: develop a procedure to ensure that the College of Business website in updated at least weekly, and immediately when timeliness is important.

1 January 2004, Dean

CoB-I3: ensure that the College of Business website provides access to the fields of expertise and the accomplishments of every full-time faculty member and of all part-time faculty members who are teaching half-time or greater loads and have taught at the CoB for more than one year.

1 July 2004, Dean

CoB-I4: create a unique logo/identifier for the College of Business, SJSU, that can be used on all of our printed material.

1 October 2003, Dean

CoB-I5: develop and have printed effective brochures for the MBA-One and the off-campus MBA programs.

1 January 2004, Assoc. Dean Grad. Studies and Research

Resources (P)

Having the necessary resources is critical to the success of almost any venture, and universities are no different than most other organizations in that regard. While resources can be broken down into many categories, we will divide them into just two: people and financial. Clearly the two are interdependent for without financial resources it is usually difficult to engage people, and without people it is almost impossible to acquire financial resources (playing the lottery is not really an option). The focus on people resources is hiring and retention and making greater use of volunteers, especially alumni. Not surprisingly, the focus on financial resources is on ways to increase them.

With respect to financial support, there are essentially three sources: the State of California via the California State University System and San José State University’s administration, earned income, and donations. Given the State’s financial crisis the first source is surely going to shrink, though we have little idea regarding the extent of the shrinkage and probably won’t know until after most of our financial resources are committed. Since we have control of the latter two sources specific actions with respect to them will be detailed. All three sources will be included in our budget, recognizing that there is considerable uncertainty with respect to the dominant source, the State.

People (P)

Accounting

Objectives: to increase both the personal and financial support of the department.

Budget Implications: an increase in donations.

A&F-PP1: double the number of members of the Accounting and Finance Roundtable.

1 July 2005; Department Chair

Management Information Systems

Objectives: to increase both the personal and financial support of the department.

Budget Implications: an increase in donations.

MIS-PP1: establish a Board of Advisors for the Department of Management Information Systems.

1 July 2004; Department Chair, Dean

Marketing

Objectives: to increase both the personal and financial support of the department.

Budget Implications: an increase in donations.

Mktg-PP1: reinstitute and formalize a Board of Advisors for the Department of Marketing.

1 July 2004; Department Chair, Dean

Organization and Management

Objectives: to increase both the personal and financial support of the department.

Budget Implications: an increase in donations.

O&M-PP1: establish a Board of Advisors for the Department of Organization and Management.

1 July 2004; Department Chair, Dean

College of Business

Objectives: to determine an “ideal” faculty profile; to increase the richness of our learning environment; to increase both the personal and financial support of the college.

Budget Implications: an increase in donations; a possible increase in travel expenses.

CoB-PP1: determine the “ideal” balance across the college and across each department with respect to: disciplines, academic education/experience, tenure-track/”temporary”, teaching/research.

1 July 2005; Department Chairs, Deans

CoB-PP2: prepare a five year plan for faculty recruitment based on the results of CoB-PP1 and expected retirements.

1 July 2005; Department Chairs, Deans

CoB-PP3: establish a Board of Advisors for the Silicon Valley Center for Entrepreneur-ship.

1 January 2004; Center Director, Dean

CoB-PP4: establish a Board of Advisors for the Center for High Technology Mangaement (to be).

1 July 2005; Center Director, Dean

CoB-PP5: establish a Board of Advisors for the Global Enterprise Management unit (to be).

1 July 2005; Unit Director, Dean

CoB-PP6: develop a strategy for establishing relationships with foreign universities including consideration of student and faculty exchanges, joint research, internship opportunities, etc.

1 January 2004: Global Enterprise Management Steering Committee, Department Chairs, Deans.

Financial (F)

College of Business

Objectives: to determine if a program is a net revenue contributor and to what extent; to increase discretionary revenue; to increase the financial support of the college; to increase the college’s endowment funds.

Budget Implications: an increase in discretionary revenue.

CoB-PF1: conduct a cost/benefit analysis of each existing fee-based program to determine its net revenue per cohort.

1 January 2004: College Controller, Assoc. Dean Grad. Studies and Research, Dean

CoB-PF2: obtain a signed agreement to establish a foreign-based, fee-based, MBA program.

1 July 2004; Assoc. Dean Grad. Studies and Research, Dean

CoB-PF3: increase gross revenue from off-campus fee-based courses by $200,000 per year for the next three years.

1 July 2004 on; Assoc. Dean Grad. Studies and Research, Dean

CoB-PF4: increase the number of faculty internship positions with local industry by one per year for the next three years.

1 July 2004 on; Dean

CoB-PF5: raise $500,000 each year for operating expenses.

1 July 2004 on; Dean

CoB-PF6: increase the amount raised for endowments under the control of the College of Business by $500,000 per year for the next five years.

1 July 2004 on; Dean

CoB-PF7: use the naming opportunity for the College of B usiness to raise at least $20,000,000.

1 July 2005; Dean

C0B-PF8: use the naming opportunity for the Graduate School of Business to raise at least $12,000,000.

1 July 2008; Dean

Budget

At this point the budget isn’t even worthy of a spread-sheet format. Not only do we not know what next year’s revenue will be, but there is sufficient confusion within our own accounting system that we are not sure of this year’s expenditures.

Revenue comes from three basic sources: the State of California (general fund), earned income (mostly fee-based programs) and donations. Only the general fund is provided on a line-item basis, and even those funds can be moved quite freely from one account to another. The only exceptions are the salaries of tenured and tenure-track faculty, as the budgeted revenue is on their salaries – i.e. we are given the exact amount needed to pay these salaries. The most sensitive revenue item is the amount we receive for “temporary” (non tenure-track) faculty. It is this sum – really a residual - that expands or contracts (outside of new tenure-track hires) according to the whims of the government. Since the cost of “temporary” faculty is considerably lower than the cost of tenured faculty, a small change can have a dramatic effect on the number of courses offered. As an example, a 4% reduction in revenue would result in about a 10% cut in the number of courses/sections we could offer

Expenses cover the usual gamut, but by far the largest are salaries for tenured and tenure-track faculty. When salaries for staff and “temporary” (non tenure-track) faculty are included salaries account for well over 90% of the College’s expenditures.

There are some anomalies of the CSU budgeting system that require explanation before stating the figures. For one thing, while the cost of tenured and tenure-track faculty is covered, the charge to the general revenue fund is considerably lower. As a case in point, we get the full-salary of someone who is on sabbatical even though the cost to us is just half that. The rest is available to hire “temporary” faculty. Two, all payments to faculty who teach during the summer come from the “temporary” faculty budget even though most are tenured faculty. Three, faculty who teach for the fee-based programs are charged against those programs at the rate of one tenth of their salary per course, even though we get their full salary. Again, the difference is used to hire “temporary” faculty. Four, when a faculty member is teaching for a fee-based program, that program is also charged for his/her benefits. When that faculty member is teaching on-campus to our regular students, benefits are paid by the central administration. Five, if we move money from the salary budget to the one for “operating expenses and equipment” (OE&E), we get an additional 20% since benefits no longer have to be paid. These are just a few of many instances indicating how budgeting within the College deviates from most other practices.

The budget is presented in two parts: the General Fund, which comes from the State of California, and the Trust Fund, which comes from revenue generated by our fee-based programs. Please note that certain expenditures can be moved from the general fund to the trust fund. This is done throughout the year to assure that the general fund does not have a deficit. To be blunt, the fee-based programs provide a significant subsidy to the state supported programs.

General Fund

(July 1 2003 – June 30 2004)

Revenue

Tenured and Tenure-Track salaries $6,699,000

“Temporary” Faculty salaries 2,075,000

“Summer Premium” 195,000

Miscellaneous Allocations for faculty and staff 41,000

Management and Professional salaries 266,000

Department Chairs salaries 270,000

Staff salaries $899,000

Work Study program $21,000

Operating Expenses and Equipment $247,000

Total General Fund Revenue $10,713,000

Expenses

Tenured and Tenure-Track salaries $6,340,000

“Temporary” Faculty salaries 2,540,000

Management and Professional salaries 317,000

Department Chairs salaries 290,000

Staff salaries $980,000

Work Study program $21,000

Copier contract $85,000

Telecommunications 50,000

Travel 25,000

Supplies 15,000

Graduate office 10,000

Business Student Advisement Center 5,000

Refurbishing and furnishing of BT 550 10,000

Miscellaneous 25,000

Total General Fund Expenses $10,713,000

Note: no allowance has been made for possible budget cuts. Travel and perhaps Miscellaneous could be cut by $10,000 each. The rest of the cut would have to be taken from “Temporary” Faculty salaries.

Trust Fund

(July 1 2003 – June 30 2004)

Revenue

Off-Campus MBA and MST $1,190,000

MBA-One 585,000

MBA/MSE combined program 222,000

EPSCI program (undergraduate students from France) 65,000

Total Trust Fund Revenue $2,062,000

Expenses

Teaching $690,000

Rose Orchard Facilities 310,000

Staff salaries 200,000

Summer Research Grants for new faculty $220,000

Moving Expenses for new faculty 20,000

Professional Development Grants for faculty and staff 90,000

Computers and Software for faculty and staff 80,000

Students Assistants for faculty and staff 50,000

Business Student Advisement Center (student assistants) 100,000

Postage 15,000

Ross Orchard LAN Upgrade $40,000

Dividends Magazine 60,000

Support for the College of Business Alumni Association 25,000

Advancement Activities 10,000

Public Relations, Brochures and Advertising 75,000

Support of Centers of Excellence 25,000

Total Trust Fund Expenses $2,010,000

Note: Assuming that estimates of revenue and expenses are reasonably accurate, the difference between Revenue and Expenses of $52,000 is, in fact, the actual contingency fund.