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Strategic Management Issues with Engineering Management Distance Learning Session 2242 Strategic Management Issues with Engineering Management Distance Learning E. Parkinson, M. Hailey, G. Garrison The University of Tennessee Space Institute Abstract This paper identifies and discusses real-world strategic issues in making distance learning a “Win-Win-Win” for the primary customer(s), the general public, and the educational insthution. The Univershy of Tennessee’s Graduate Engineering Management Program is used as a case study. Concepts and issues are discussed generically to promote transfer of key concepts and lessons learned to other distance learning and engineering management programs. Key areas discussed are strategic vision, strategies for “how- to-get-there, ” customer focus, market analysis, economic issues, and the process for continuous improvement. Introduction What strategic management approach should be used and what should be considered by a university that k either offering or considering offering graduate engineering education management through distance learning? For this paper the strategic management approach includes formulating what k referred to as strategic vkion and the strategies for obtaining that vision. These concepts are dkcussed in general and for a graduate engineering management distance learning program. Market opportunity for distance learning k addressed, since this k perhaps one of the primary reasons for having distance learning. And as one might expect, the economic aspects are also of primary consideration when strategically planning a distance learning program. Strategic Vision and How to Get There: In General What k the business of the organization? -- what are we trying to do? -- where k our organization headed? -- what are we trying to become? These are considered the foremost direction-setting questions for senior organization leaders, administrators, managers and stakeholders. In fact, these can be considered the primary questions of concern in considering organizational growth, competitiveness and survivability. If successful, strategic vision infuses the organization with a sense of purpose and whh long-term direction. Strategic vision in effect, becomes the hub; for “identity” setting of the organization, for both internal and external communication, for setting’ of goals and objectives, for resource prioritization, for individual and team motivation, for fiscal responsibility and accountabilhy, and to measure overall effectiveness. The process of strategic management can be looked at in two steps; “strategic vision” and “how to get there. ” Figures 1 and 2 show this breakdown of strategic management and keys-to-success in implementing the steps. Page 1.391.1 Page [fixa~ 1996 ASEE Annual Conference Proceedings ‘.,,,~yyc,.$ First Step: Who are the Customers desires - expectations - requirements Strategic Vision top-level ( where organization headed ) Strategies: “How to Get There” Figure 1. Strategic Management Process VISION How-To-Get-There / \ buy-in of vision / measurable objectives L___ % $=hnk Dolicies/Drocesses to vision Y contro-l and accountability measures ., I I 1 Continuous Improvement Page 1.391.2 Page Figure 2. Key Strategies ‘How-To-Get-There” \’.. ,%,, ~‘,liyly Strategic vision starts with a clear top-level vision and picture of where the organization is headed in the future -- say over the next 5-10 years. Ideally, this can be stated in a way that all participants of the organization can directly and personally relate to as stakeholders. Ideally this statement should inspire the organization to aspire to focus on meeting the vision. The first step in developing a strategic vision is to understand and define the business of the organization. This may not be a simple task. Who are we to serve? Who is the customer -- or are there many customers or groups of customers? Perhaps the answer to who the customer is should start by identifying who maintains the organization’s existence? -- where “does or will” the organization get its financial resources? - and - what “are or will be” the implications and expectations from the customer(s) or groups? Identifying and understanding these external customers should form an initial basis for understanding the purpose of the organization. This should be a primary consideration in strategic vision formulation and development of strategies to achieve the vision or mission statement. In addition, each person of an organization has customers internal to the organization that they serve. Identifying this tie of internal customer service to external customer needs, requirements and expectations and to the overall strategic vision can form a basis for accountability and improvement. This latter point is reflected into the strategies for “how to get there. ” Perhaps the first key strategy for “how to get there” is having as an objective to foster understanding and support of the vision by all fictional personnel. This is done through a combimtion of leadership, principles of team building and motivation. Another key strategy is to strive to have the operational policies and procedures of the organization tied/linked from the strategic vision. This starts with having measurable performance objectives or targets and showing where all operating policies, procedures and processes are linked from all levels of the organization to the internal and external customers and to the vision from top-level leadership. It may be difficult and time consuming to get a clear picture and understanding of how each person fits into the overall strategy. It may be difficult and time consuming to get a clear picture and understanding of how the operating policies, procedures and processes relate to the internal and external customers and strategic vision. However, the better this baseline ties to the vision and is communicated and understood, the better is the opportunity for control and accountability measures to become a positive long-term influence on meeting the vision. These strategies provide a baseline for better understanding of the costs for each part of the process. This leads to another strategy for “how get there. ” This key-to-success is to emphasize and promote continuous improvement in all aspects of the organization, including its operating environment and culture. As can be seen from Figure 2, the strategy of continuous improvement also means to keep looking for needed change in the overall vision. Perhaps the initial vision statement was in the right direction, but the wording could be improved for clarity and focus or emphasis. Perhaps competition, market opportunity or customer expectations offer a need for change. Consider fostering a culture where quality change is what is looked for and that change be plamed as evolutiomry. These are characteristics of continuous improvement. When organizations do not provide a culture for continuous improvement that emamtes at all levels, then change comes through resistance, conflict and revolutiomry actions. Government organizations, organizations that are finded by the government, and monopolies may not have adequate culture, economic incentives and accountability measures for promoting continuous improvement. However, most organizations have strong competition, with changing customer and market needs and opportunities made available through the use of evolving technologies. Thus organizations having developed a culture for continuous improvement have the inherent advantage for long-term financial existence and survivability. Page 1.391.3 Page $liiii’} 1996 ASEE Annual Conference Proceedings ‘..,llllly’,~ Strategic Vision and How To Get There: Graduate Engineering Management Distance Learning Program Let us consider how the concepts discussed above could be tailored for an institution that either has or is considering offering a graduate engineering mamgement distance learning program? Who is the customer? What is the vision and what strategies will be used? The university’s customers can perhaps best be identified by identifying the sources of the university’s revenue. The starting point for determining customer service priorities and emphasis can then be assessed by identifying the requirements and expectations that come from these customers. There are many sources of revenue for academic institutions (Figure 3). With these sources of revenue, in some cases, comes a somewhat vague but broad range of responsibilities and expectations for customer service. In most universities, an important source of revenue for education comes from student fees. Students’ desires and expectations include a quality education, and learning experience that assists them in meeting their professional growth objectives. Some students desire the opportunity to select coursework to best meet their education objectives. This implies that the educational program needs to have some flexibility to be responsive to individual customer needs. Some students, particularly on site students also desire financial assistance from the academic institution. Donations, Endowments, Fellowships individual, group, industry \ / \ Subsidies / State , Federal Figure 3. Sources of Funds: Customers Many universities are subsidized through State and in some cases only through Federal funding. Government funding for universities comes with expectations to advance the education of students so they can better meet job growth opportunities and to advance science and technology developments. Thus, this gives the requirement for the university to support short and long-term growth and opportunity needs of individuals,
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