Application of Balanced Scorecard

A fount Study Application of the fit board in Higher Education by Andrea Mae Rollins A utterance submitted to the superpower of San Diego secern University In partial ful bringment of the gestatements for the degree sterilize of Educational Leadership June 28, 2011 iii Copyright 2011 by Andrea Mae Rollins v committal This wrick is dedicated to my br whatever early(a) Jason, from as early as I shadow remember he has alship bottom of the inningal been proud of his little babe and her accomplishments his pride, his love, and his subscribe impart forever be cherished and means much than than he will ever know, and To my grandm former(a)(a)(a) Dollie, who sacrificed so much in order to cross out up for me the life I motiveed she taught me to be mannikin and generous and to ask for helper when needed, besides intimately principal(prenominal)ly she taught me anything is possible, and To my sincere friends, who give me to a greater extent credit than I de admi nister and love me categorically I am extremely fortunate to hurl such a wonderful group of amazing women in my life, and To Fred, who never gave up on me his confidence in my abilities gave me the strength to push through all obstacles and invite it to the finish line. v ABSTRACT The procedure of this postulate was to examine the diligence of the fit menu as a caution tool at envisiont the foreign and Business personal matters (EBA) social unit of bill at University of atomic tour 20, San Diego (UCSD). Specially, the study sought-after(a) to examine how the equilibrise wit was communicated throughout the judicature, how the data argon utilise deep down the validation, and how the data argon dropd for decision making, paying particular proposition vigilance to the tetrad li close persuasions of UCSDs EBAs individualised equilibrise wag.These 4 earns atomic number 18 m adepttary/stakeholder, midland answeres, innovation and erudition, and th e customer. This descriptive case study, a review of program records, a quantitative survey and qualitative interviews with EBA employees utilizing the unbroken comparative method and descriptive statistics, identified 4 lessons learned the actually informed employees be at the top of the presidential term and they find honour in the fit identity card, most employees argon unawargon of availability and macrocosm utility company of the equilibrate lineup data, even an un restd scorecard improves affair trading operations and the annual doing evaluation process is an opportunity to reinforce the equilibrize Scorecard. The study includes three recommendations for EBA.The recommendations argon EBA lead needs to communicate the equilibrize Scorecard process, outcomes, and coating with greater clarity to all employees in the organization there needs to be an institutional image for susta softness of the equilibrise Scorecard to ensure it transcends the current people and environment and the fit Scorecard process within EBA moldiness be flexible for approaching organisational evolution. vi TABLE OF CONTENTS varlet ABSTRACT.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . LIST OF TABLES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . LIST OF FIGURES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ACKNOWLEDGMENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CHAPTER 1INTRODUCTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . play down The equilibrise Scorecard. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Site of the Case Study University of calcium, San Diego. . . . . . . . . . . . . . . . . External and Business affairs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . occupation Statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Definition of scathe. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Signifi bottom of the inningce of This Study.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Purpose Statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Theoretical Framework. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Research Questions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Limitations of the Study.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . De limit points of the Study. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Role of the Researcher. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . g e precisewherening of the Study. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CHAPTER 2REVIEW OF THE LITERATURE. . . . . . . . . . . . . . . . . . . . . . . . . . Roles and Expectations of Higher Education. . . . . . . . . . . . . . . . . . . . . . . . . . . . Higher Education in atomic number 20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v x xi dozen 1 1 4 6 9 10 11 12 12 14 14 15 15 15 17 17 19 septenary Reengineering Education. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . capital punishment support.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Accreditation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . organisational Structure and Management Tools. . . . . . . . . . . . . . . . . . . . . . . . . Total bore Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Malcolm Baldrige loot Framework. . . . . . . . . . . . . . . . . . . . . . . . . . . equilibrate Scorecard. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . match Scorecard and Higher Education. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Organizational Change and the Case Study. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CHAPTER 3METHODOLOGY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Research Design.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Research Questions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Setting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Participants.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . data Collection and Analysis.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . wonders.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Survey. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Program Records. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Data Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Timeline. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ethical Principles Based on Human Subjects. . . . . . . . . . . . . . . . . . . . . . . . . . . . Role of the Researcher. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 22 24 28* 28 29 30 33 34 36 37 37 38 38 40 41 42 44 45 46 47 47 48 viii Limitations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CHAPTER 4FINDINGS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Participant Profiles.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Survey. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interviews.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Source of Findings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Program Records. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Survey. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interviews.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Historical Perspective. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Implementation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Lessons Learned.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Recent Changes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interview Themes.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A Tool With Many Names.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Communication Is an Individual C hoice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . An macabre balance Scorecard. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Impact Is Personal.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Visionaries Can Be Found at All Levels. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CHAPTER 5DISCUSSION AND RECOMMENDATIONS. . . . . . . . . . . . . . . . . Lessons Learned.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 48 50 51 51 54 56 56 57 60 61 61 63 64 64 65 66 69 72 74 77 78 79 ix Informed Employee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Availability and Usefulness. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Unbalanced Scorecard. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Performance Evaluation Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Theoretical Framework. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Recommendations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Communicate With Clarity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sustainability Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Flexibility.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Future Research. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Process Mapping. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Balanced Scorecard Implementation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Balanced Scorecard Components.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Traditional Academic Unit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Quantitative Outcome Measures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . REFERENCES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . APPENDICES A. sin ChancellorExternal and Business Affairs Organization Chart.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B. Balanced Scorecard Example.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 86 88 92 95 97 98 99 100 102 102 103 103 104 104 105 106 112 113 LIST OF TABLES PAGE Table 1. External and Business Affairs Personalized Balanced Scoreca rd. . . . . . . . Table 2. Unit tie-in of Survey Participants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Table 3. Years of Service of Survey Participants. . . . . . . . . . . . . . . . . . . . . . . . . . . . Table 4. dapple of Survey Participants.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Table 5. Interview Participants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Table 6. Survey Responses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 52 53 54 56 58 i LIST OF FIGURES PAGE Figure 1. The Balanced Scorecard visual created by Ka political program and Norton.. . . . . . . . . 3 xii ACKNOWLEDGMENTS I would like to thank my dissertation committee for their support and industry in the completion of this study. convey you to Dr. Fred McFarlane for always making time to hear me. There were many excuses used, but you never seemed frustrated or foiled but earlier your continued support kept me motivated and committed. Thank you to Dr. Shaila Mulholland for continuously pushing me a bit moreover and your continued support bit doing so. Thank you to Dr. Mark Tucker for your c arful review of this work and your sound advice and guidance.I would also like to thank Dr. Angela Song and the UCSD community. Dr. Song, throughout this broad(a) process, if felt as though I had a partner in you. Your generosity in foothold of sharing your time and knowledge meant a lot and was a significant contributor to my success. To the UCSD community, thank you for your honesty and openness. Lastly, I want to thank my friends and family. Thank you for always believing in me. Your cost increase and support helped attract this possible. A final thanks goes to Bailey and Hershey for their unconditional love, peculiarly in those moments when I had little time and attention for them they rode this wave with me. CHAPTER 1INTRODUCTION Steven Covey is quoted as saying, People and their supervisers argon working so hard to be sure things are done right, that they hardly exact time to decide if they are doing the right things (Rohm, 2002, p. 1). Managing an organization is a match act. This balancing act requires the organization and all its members to ensure the ontogeny of groovy business strategies that allow for efficient operations and practices. The Balanced Scorecard is a motion management tool that assists the organization in finding its balance (Rohm, 2002). According to Kaplan and Norton (2007), The balanced Scorecard supplemented traditional fiscal prizes with criteria that measured movement from three call onthal perspectivesthose of customers, indwelling business, and learning and growth (p. 2).This case study examines the application of The Balanced Scorecard in External and Business Affairs (EBA) at the University of California, San Diego (UCSD). Specifically, it fancys at the personalized Balanced Scorecard that UCSD deve loped for their experienceation. downplay The Balanced Scorecard The Balanced Scorecard, developed in 1992, provides organizations with an opportunity to measure more than financial cognitive process indicators. Kaplan and Norton (1992) developed the Balanced Scorecard so that managers should not start to choose between financial and operational measures (p. 71). The exploitation of the balanced scorecard was in response to a changing and more competitive environment where executives felt traditional measures of financial instruction execution were not sufficient.The Balanced Scorecard was jut outed as a pretense for cadence several dimensions of 2 performance. The model provided managers with a format that allowed them the opportunity to comprise additional perspectives beyond financial performance measures. By using this model, organizations are able to complement their financial measures with additional nonfinancial performance measures for the purpose of planning emer ging growth and creating an organization with more collaborative leadership (Kaplan & Norton, 2007). Kaplan and Norton (1992) realized a familylong investigate project that was comprised of 12 companies that they draw as being at the leading edge of performance management.The firmness of purpose of this yearlong look project is the Balanced Scorecard, which is an assessment tool comprised of a set of measures that go beyond the traditional measures of financial criteria to include measures that are inclusive of both financial and operational indicators. The Balanced Scorecard provides answers to quartette canonic hesitancys 1) How do customers see us? 2) What moldiness we excel at? 3) Can we continue to improve and create pass judgment? and 4) How do we look to shareholders? (Kaplan & Norton, 1992, p. 72). Kaplan and Norton betoken that by giving managers the answers to these quadruple basic questions, they will pitch multiple measures to judge the performance of their organization, but will not be overloaded by a large number of measures. Additionally, the variety of measures requires the financial and operational leaders to work together.The Balanced Scorecard hangs as an well tool for determining whether the success in one welkin occurs to the scathe of another, as well as identifying if success in one area is associated with strong performance in another area (Kaplan & Norton, 1992). By considering the four perspectives altogether, the Balanced Scorecard indicates when a process that serves a gain to your customers whitethorn in fact hinder the 3 organization from the innovation and learning perspectives. Figure 1 is a visual of the tool Kaplan and Norton created to describe the Balanced Scorecard. Figure 1. The Balanced Scorecard visual created by Kaplan and Norton. Adapted from The Balanced Scorecard Measures That Drive Performance, by R. S. Kaplan & D. P.Norton, January-February 1992, Harvard Business Review, p. 72. The tool provides the four questions of the Balanced Scorecard in relationship to one another and links the questions to the perspective to which they are responding. Additionally, the Balanced Scorecard provides the format for tracking the data, which they break up into goals and measures. The four perspectives are Financial, Internal Business, Innovation and learn, and Customer (Kaplan & Norton, 1992). These four questions are the buns of the Balanced Scorecard. Goal setting and tracking 4 measures help to make the Balanced Scorecard a successful performance measure tool for organizations.Site of the Case Study University of California, San Diego In recognition of its innovative come on to cutting costs, solving problems, and increasing efficiency (UCSD, 2003, para. 1) the University of California, San Diego was inducted into the Balanced Scorecard entrance hall of Fame in 2003 (External and Business Affairs EBA, 2011b). Robert S. Kaplan and David P. Norton tack togethered the Palladium theme (2010), a inter national organization that provides, among other operate, consulting in strategy and performance management. The Palladium Group developed the Balanced Scorecard Hall of Fame, which honors organizations that subscribe graspd performance rightness through the use of the Balanced Scorecard.There is a formal application process, and the plectron criteria requires an organization to wee follow outed the Balanced Scorecard methodology, have completed a breakthrough in performance results for at least 24 months, and have provided a testimonial that the organizations success is, at least in part, payable to the Kaplan-Norton approach. In 2010, there were more than one hundred thirty current Hall of Fame Members. Members included domestic and international organizations. They were presented in the spare-time activity industry groups consumer, teaching and nonprofits, energy and utilities, financials, organisation, healthcare, materials and industrials, and tele communications and information technologies (The Palladium Group, 2010). In 2003, UCSD was the commencement exercise university to be added to the Hall of Fame.The recognition came 10 years after adopting the performance management arranging in 1993. There are barely cardinal other universities that have been inducted into the 5 Hall of Fame. These two universities are the University of Leeds placed in the United Kingdom and the International Islamic University of Malaysia. University of California, San Diego, one of the 10 campuses in Californias University of California system, was founded in 1960. University of California, San Diego is highly regarded nationwide as both an outstanding institution of high(prenominal)(prenominal) learning and as a top tier research institution. In the 2011 Americas Best Colleges Guidebook, issued by U. S.News and World Report (as cited in UCSD, 2010a), UCSD was bedded as the 7th best macrocosm university in the nation. In 2010, there were fin Nobel Prize winners among UCSDs faculty body (UCSD, 2010a). University of California, San Diego has significant ties to the local community, specifically related to the amount of jobs it provides for members of the local community. University of California, San Diego is the third largest employer in San Diego County, employing nearly 26,000 employees. Its faculty and alumni have contributed to at least 193 start-up companies in the San Diego community. The touch of the research at UCSD extends throughout California, which notes that UC San Diego contributes more than $7. billion in direct and indirect using up and personal income each year to the California economy and generates 39,400 jobs, establish on an self-sufficient study conducted by CBRE Consulting released in 2008 (UCSD, 2010a, para. 7). The work of the students, faculty, researchers and alumni has a local, severalise, and national influence and a global reach. The campus consists of six undergraduate colleges, f ive faculty member divisions and five graduate and nonrecreational civilises. In the fall of 2010, the total campus enrolment was 29,899 students. The annual revenues for UCSD are approximately $2. 6 billion with 22% of the revenues 6 coming from federal officially funded research and 11. 5% coming from the State of California (UCSD, 2010a).The Washington monthly is a different ranking guide that ranks high tuition organizations on an annual basis on their contribution to the common good. The categories for the college guide and rankings for the introduce are Social Mobilityrecruiting and graduating low income students Researchproducing stylish scholarship and PhDs and Serviceencouraging students to give something back to their country. In 2010, UCSD ranked number one on the Washington Monthly list. Washington Monthly explains their rankings are unlike U. S. News and World Reports and other guides be do they do not look at what colleges can do for the individual but rather what the colleges do for the country (College Guide, 2010).External and Business Affairs The mission of UCSD localisees primarily on procreation and research. The leadership structure of the university is divided into seven vice prime minister areas. Three of the vice prime minister areas hold faculty member appointments and directly serve the pedagogics and research mission of UCSD. The other four vice chancellor areas serve this mission, as well, but in more of a marginal role. The External and Business Affairs (EBA) vice chancellor area serves the university by providing leadership and management for the business and administrative functions. disdain the fact that UCSD is accepted by the Balanced Scorecard Hall of Fame, only EBA has implemented the Balanced Scorecard.The overall mission of EBA is raising financial support for UCSDs research, inform and patient care, while delivering superior service to our stakeholders in a antiphonal and cost-effective manner (EBA, 2 011a, para. 1). The organisational units in the EBA 7 include administrative Computing and Telecommunications, Human Re initiations, Business and Fiscal Services, Housing, Dining and Hospitality Services, Alumni Affairs, University and wellness Sciences Development, and the UCSD Foundation and Advancement Services. A full description of the organizational unit is found in Appendix A. Currently, Steven W. Relyea serves as the Vice Chancellor for EBA.Through his leadership, UCSDs EBA adopted the Balanced Scorecard in 1993. When honored as a member of the Balanced Scorecard Hall of Fame in 2003, UCSD had saved more than $6 trillion since the Balanced Scorecard was adopted. Mr. Relyea is quoted as saying The Balanced Scorecard process provides UCSD with a roadmap which indicates where it should focus its energies, priorities, and resources in providing administrative service for UCSD. During difficult reckonary times, this approach is indispensable. While some may have viewed an appro ach such as the Balanced Scorecard as elective in the past, many will find it a differentiate to endurance in this era of shrinking funds. (UCSD, 2003, para. ) Stemming from the basic four questions outlined by Kaplan and Norton (1992) in the Balanced Scorecard (i. e. , 1) How do customers see us? 2) What must we excel at? 3) Can we continue to improve and create value? and 4) How do we look to shareholders? p. 72), UCSD created four perspectives for the focus of their Balanced Scorecard tool. The four perspectives of UCSDs Balanced Scorecard focus on the financial/stakeholder, the internal processes, innovation and learning, and the customer. These four perspectives link to Kaplan and Nortons questions as follows the financial/stakeholder perspective responds to Kaplan and Nortons question number four the internal process perspective responds to question number two the innovation and learning perspective responds to question number three and the customer perspective responds to question number one. University of California, San Diego prides itself on being a strategic, forward- cerebration organization. University of California, San Diegos EBA kept this framework as their foundation when personalizing the four perspectives and outlining their foci for the implementation and application of the Balanced Scorecard. External and Business Affairs values these four perspectives (see Table 1) as tools and provides the organization with the following foci to further pose the perspectives.Table 1 External and Business Affairs Personalized Balanced Scorecard Perspective Financial/Stakeholder Internal Process Innovation and Learning Customer Focus Looking Backwards Process Performance Employee bliss and Wellness Customer Satisfaction University of California, San Diego has draw their benefits from the Balanced Scorecard as the ability to align customer priorities with business priorities, the ability to track pass around over time, the method for the evaluation of process limitings, the method for identification of opportunities for initiatives and partnerships, the source for responsibility to constituents, and the source for the development of action plans and setting strategic direction. University of California, San Diego as an institution benefits by the application of the Balanced Scorecard within EBA. Despite EBA being the only vice chancellor area that has implemented and apply the Balanced Scorecard, the benefits extend through all areas of the institution stipulation that the services EBA provides to faculty and staff extends throughout the entire institution. Problem Statement In unfaltering fiscal times, challenges and expectations increase for high(prenominal)(prenominal)(prenominal)(prenominal)(prenominal)(prenominal) grooming organizations. The concept of a high didactics organization running more like a corporation serves as a basis for criticism of the organization. In potent fiscal times, critics are extremely o utspoken closely the business of high schooling. They challenge everything from the manner in which high(prenominal) nurture organizations are form and their livelihood decisions, to their staffing choices.Higher teaching organizations are viewed as a key circumstances in overcoming tight fiscal times, therefore providing hope for the nation. However, their resources do not increase while their expectations by the students and other customers do increase over time. Higher raising organizations face external pressures to adapt and manage transmit by utilizing market and business strategies. The financing of high(prenominal)(prenominal) schooling organizations is cyclical. Therefore, tight fiscal times are either on the horizon or currently present for most publically supported high procreation organizations. Alexander (2000) described this issue when discussing the concept of higher teaching accountability.He tell that a wise frugal motivation is driving resigns t o redefine relationships by pressuring organizations to become more responsible, more efficient, and more growthive in the use of publicly generated resources (p. 411). A related perspective is provided by Kotler and spud (1981), who wrote about tight fiscal times in higher learning in the 1980s. Almost 30 years later their line of reasonings are still very relevant given the cyclical nature of the 10 financing of higher education. They viewed the economic condition as a motivator, rather than seeing only setbacks and challenges. They looked at the economic condition as an opportunity to strategically fit the organization forward. When fiscal times are tight, they see opportunities for higher education organizations.From their perspective, tight fiscal times are opportunities for planning and strategizing about the organizations future. If the higher education organization can look introspectively and incur to analyze their current moorage rather than focusing simply on dail y operations, they can look to the future and find impudent opportunities (Kotler & Murphy, 1981). at once higher education organizations face dilemmas of accountability. They are challenged to operate more strategically and are tasked with finding greater process efficiencies. Green (2003) argued that traditional approaches for managing higher education organizations are no longer relevant. Organizations need to reengineer themselves to be relevant in to daytimes decree.Higher education organizations must identify, look, and implement strategies that can assist them in responding to these crude expectations. In 1993, when EBA implemented the Balanced Scorecard, it was part in response to tight fiscal times and increase federal regulations. uniform with Greens argument, EBA was looking for a way to reengineer their organization in order to respond to the challenges of disappearing resources and increased regulation while finding a way to be strategic and accountable. Definiti on of Terms The following price were used in this study. 1. Balanced Scorecard refers to the performance management tool developed by Robert S. Kaplan and David P. Norton in 1992. 11 2.Balanced Scorecard foci refer to the foci established at UCSD in conjunction with their personalized Balanced Scorecard perspectives. 3. Balanced Scorecard perspectives refer to the personalized Balanced Scorecard at UCSD. 4. External Business and Affairs (EBA) refers to the vice chancellor unit at UCSD that has implemented the Balanced Scorecard. 5. Higher Education organizations refer to public and private nonprofit 2-year colleges and public and private nonprofit 4-year universities. 6. University of California, San Diego (UCSD) refers to the study turn up for this case study. 7. westerly Association of Schools and Colleges (WASC) is the accrediting commission for Senior Colleges and Universities in the western Region of the United States.Significance of This Study In light of the current and future expectations, higher education organizations require examples of successful implementation and adaptation of management strategies that address the need to become more wareive, accountable and efficient. The Balanced Scorecard, which utilizes measures beyond financial performance, is a tool that can assist higher education organizations to become more efficient and accountable. This case study took an in-depth look at the application of the Balanced Scorecard in units within the EBA vice chancellor area at UCSD. The results of the case study will provide other higher education organizations with a detailed view of how the Balanced Scorecard is communicated throughout the units, examples of what type of data elements are 12 tracked, and how these data elements are used for decision making.This detailed view of the Balanced Scorecard application will be useful for higher education administrators who are both internal and external to UCSD. For current UCSD administrators, this study provided them with a new view of the Balanced Scorecard. For external higher education administrators, this study will provide them with another model for doing business. This detailed view will provide them with examples of how one higher education organization has applied their Balanced Scorecard and wedge its performance. Purpose Statement This case study examined the application of the Balanced Scorecard as a management tool, and explored how the Balanced Scorecard and UCSDs EBA personalized perspectives/foci were communicated throughout the organization.The results identified the data elements that the Balanced Scorecard tracks and described how the data were used for decision making. This case study paid particular attention to the four perspectives of UCSDs EBA which were personalized for their application. These four perspectives are financial/stakeholder, internal processes, innovation and learning, and the customer. Theoretical Framework This study was informed by B olman and draws Reframing Organizations Artistry, Choice, and Leadership. Bolman and Deal, in 2008, the fifth release of work that was first publish in 1984, provide a four-frame model that views organizations as factories, families, jungles, and temples (p. vii).The four frames are the structural frame, the human resource frame, the governmental frame, and the symbolic frame. A frame, 13 as delineate by Bolman and Deal, is a mental model. It is a set of ideas and assumptions that you carry in your head to help you understand and negotiate a particular territory (p. 11). Frames are needful so individuals within organizations can quickly create a mental model of their current situation so they know how to curbly navigate the situation. Bolman and Deal explain that although it is key to have mental models (i. e. , frames in order to negotiate day to day situations), it is also important for individuals to have the ability to break frames they call this reframing. They argue tha t learning to apply all four frames creates a deeper appreciation and reasonableness of the organization. Bolman and Deal (2008) outline the frames with the following descriptions. The structural frame or the manufactory emphasizes organizational architecture and the formal roles and relationships in an organization. The structure of an organization is found in an organizations organizational charts, the linear or upright piano relationships that have been defined and provided to employees. The human resources frame or the family emphasizes relationships, particularly interpersonal relationships. The human resource frame is concerned with the individual in the organization, their feelings and their needs.The political frame or the jungle refers to the political nature of an organization including the struggles of power, competition, and alinement building, as well as including the much needed negotiation and consensus building. The symbolic frame or temples refers to the informal assimilation of the organization. The symbolic frame emphasizes symbols and rituals within an organization. In the context of the case study, it was important for the researcher to have an rationality of organizational theory. These four frames were selected by the researcher to guide her research design and methodology and to provide her lens for gathering and analyzing data due to the fact that the four frame 14 model provided by Bolman and Deal are inclusive of the entire organization.The theory they have been working on since 1984 provided an appropriate context to study the Balanced Scorecard at UCSD it describes the organization in four competing and complementary frames, akin(predicate) to the concept of the Balanced Scorecard. Research Questions In order to understand the application and management of the Balanced Scorecard in UCSDs EBA, the following questions were answered through this case study 1. How are the four perspectives of the Balanced Scorecard communicated i n the EBA? 2. How are the data from the Balanced Scorecard used within the organization of the EBA? 3. What impact does the Balanced Scorecard have on decision making in the EBA?Limitations of the Study A limitation of this study is that all higher education organizations operate in a very distinct and unique manner. It may be difficult for some higher education organizations to find connections to this case study given the differences in mission, size, operations, and organizational structures of their institution when compared to UCSD. A second limitation is that since EBA is primarily a financial and administration unit within a high education organization, their processes and applications may not work for nonfinancial units. 15 Delimitations of the Study A delimitation of this study was the study site. The researcher selected UCSD based on propinquity and familiarity.Within UCSD, the EBA is the only vice chancellor area that has adopted Balanced Scorecard. The other six vice cha ncellor areas have not adopted the Balanced Scorecard. Another delimitation of the study was that the researcher focused only on the Balanced Scorecard performance management tool rather than other performance management tools which are utilized at UCSD in the other vice chancellor areas. Role of the Researcher The researcher is currently a Director at UCSD in the wellness Sciences Vice Chancellor area. The Health Sciences organizational unit has not adopted the Balanced Scorecard as a management tool however, the researcher works with offices on a regular basis that have adopted the Balanced Scorecard.The researcher was invested in this case study because she wanted to gain a greater sympathy of how the Balanced Scorecard has been implemented and how this can be modeled throughout UCSD and other higher education organizations nationwide. Even though she is an employee at UCSD, she essay to be unbiased and fair. Organization of the Study This research study is nonionised in five c hapters. Chapter 1 includes an introduction to the study, the purpose statement, the significance of this study, research questions, definition of terms, the limitations and delimitations of the study, and the role of the researcher. Chapter 2 includes a review of the literature and research on the Balanced Scorecard and its role in higher education. Chapter 3 includes a discussion of 16 the methodology that was used in the study.Chapter 4 includes the results and analysis that emerged from the study. Finally, Chapter 5 includes a summary of the study and lessons learned and recommendations based on the findings. 17 CHAPTER 2REVIEW OF THE LITERATURE The roles and expectations of higher education organizations have significantly channelized in the last decade. Higher education organizations are expect to provide a multitude of services in addition to providing the highest musical note education for their students. Higher education organizations are expected to serve as a significan t contributor to the nations economic state. They are expected to contribute to their communities via the students they educate.The students should transition quickly into productive workers in society as both skilled and knowledge workers. They are expected to contribute via technology advances and business start ups that emerge from academic research. Stemming from the academic research, they are expected to contribute via innovations that lead to new products, services, and new coaction with industry (Berdahl, 2009 Douglass, 2010a Gumport & Sporn, 1999 Serrano-Valarde, 2010). Role and Expectations of Higher Education The new roles of the higher education organizations and the expectations placed on them have stemmed from social expectations, public polices, and technical innovations.Higher education organizations are seen as a spark that once ignite can create vast benefits for society. This new role and the expectations of higher education organizations have created a need fo r university leaders to become increasingly accountable and to develop organizational structures that can support and fulfill current and future expectations. Higher education organizations are now being assessed on their ability to problem solve, their ability to provide a high choice product in a low cost environment, their ability to continue to exercise a level of glide path despite budget cuts, and to produce graduates as knowledgeable and skilled workers in a reasonable 18 timeframe.The demands upon higher education organizations require them to become more strategic in nature, and to explore discussions of restructuring, resource management, and quality assurance. Despite the new expectations, higher education organizations are not expected to receive additional financial backing or fasten new championship streams. Rather, the reality is their operating budgets will continue to devolve (Gumport & Sporn, 1999). As an example, it was reported in January 2011 that higher education organizations in California should expect budget cuts of approximately $1. 4 billion for fiscal year 2011-2012 (Keller, 2011). Higher education organizations are increasingly challenged to meet these new expectations, given the current budget situation and the forecast of a bleak financial future.It is the opinion of many that 2011 and future years may be as as troubling financially as the recent reductions higher education organizations have faced (Atkinson, 2009 Douglass, 2010a, 2010b). According to Douglass (2010b), the demand for higher education and societal gains from higher education organizations go up during economic downswings. There is an important relationship between the need to educate students and provide support for academic research and the funding available during times of economic downturn. Douglas (2010b) argues, Education funding and enrollment capacity may be as important as any other policy level to cope with the economic downturn (p. 2).Additional or continual budget cuts simply provide further limitations on the higher education organizations ability to meet these new expectations. The current budget cuts will have a significant impact on graduation rates and future worker shortages. Douglass (2010b) continues his argument, speaking specifically about the state of affairs of higher education in California by stating, It is undergoing a possibly 19 significant redefinition, driven whole by severe budget cuts and without a long-term strategic plan (p. 9). Higher Education in California Focusing on the state of affairs of higher education in California, Douglass (2010a) describes the near collapse of the system.The near collapse has been brought on by the states fiscal failing and therefore a lack of funding to its three-tiered structure, the University of California System, the California State University System, and the California Community College System. Public support for student funding has plummeted in California and, despite the continued growth of applicants, the three-tiered system is unable to sustain qualified students. In addition to their capacity issues, California is challenged by its inability to graduate students, which continues to add to the worker shortage in the state. Many students in California are displaced and looking to nonprofit (i. e. , National University) and for-profit universities (i. e. , the University of Phoenix and Argosy University) to fill the void left by the state-supported three-tiered system.The number of displaced students is predicted to continue to grow given that the universe in California will increase exponentially in the next 40 years. The U. S. Census Bureau (2010) cites the current population in California at 36,961,664. It is projected to reach 60 million by 2050 (California Department of Finance, 2007 Douglass, 2010a U. S. Census Bureau, 2010). Douglass (2010c) describes the for-profit universities as providing a lesser quality product. It may be mo re admissionible, but it oftentimes comes with a big cost and a decreased level of quality. The movement to for-profit universities as a result of lack of access is not unique to California or the United States.Douglass (2010c) describes this phenomenon as the Brazilian Effect. The Brazilian 20 Effect is when public education cannot keep pace with the growing public demand for access and programs. For-profits rush to fill that gap, and become a much larger provider (Douglass, 2010c, p. 5). The Brazilian Effect is usually more public in growth nationsnations that consist of large areas of high poverty rates, low high school graduation rates, and limited access to higher education. The research indicates this is more prevalent in countries such as Brazil, Korea, and Poland. California presently is experiencing these same qualities seen in developing nations.Douglass (2010c) argues the Brazilian Effect is presently being seen in California. In a response to Californias near colla pse, Douglass (2010b) argues for a insolent growth plan. This smart growth plan seeks clear goals such as degree attainment rates, with an appropriate restructuring of higher education, containment of costs for taxpayers and students, and a staidly revised funding model (Douglass, 2010b, p. 18). Of concern for Californias three-tiered system is its lack of management, vision, and planning for the future. It is this lack of a strategic plan that Douglass referred to that opens the entre for extensive criticism surrounding the management of higher education organizations.The Western Association of Schools and Colleges (WASC) serves as the accreditation body for higher education organizations in the state of California and other western states and territories. The chief goals of the senior commission of WASC, which serves as the accrediting body for 161 institutions in California, Hawaii, and the Pacific Basin, are the promotion of institutional troth in issues of educational effec tiveness and student learning, the development of a culture of evidence that informs decision making, and the fostering of an active inter mixed bag among public and independent institutions (WASC, n. d. a). Under these goals, WASC can support higher 21 education organizations in their development of smart growth plans if they choose such a plan during the assessment of the organization.The WASC describes their purpose as assessing academic quality, educational effectiveness and institutional structures, processes, and resources (WASC, n. d. b). However, it does not appear this has translated to successful management and leadership in higher education organizations in California. Reengineering Education As a result of the new expectations for higher education organizations, attempts have begun to occur to reengineer higher education organizations to achieve closer alignment with market principles and management strategies, which have proven successful in the private sector. Green (2 003) suggested that supporters of this reengineering movement include leaders from educational administration, state governments, and the business world.He argued that traditional approaches to higher education organizations and management are increasingly out of step with demographic movements, technological innovations, and the accelerating pace of agitate found in other sectors of society (p. 196). Green labeled most higher education organizations as bureaucratic based on their organizational structure of being rigid, hierarchal, and inflexible. Kotler and Murphy (1981), who wrote on the topic 30 years ago, also depicted higher education organizations in a similar fashion. They described higher education organizations as being characterized by a high concentration of professionals and usually a significant amount of organizational inflexibility (p. 472). Kotler and Murphy also acknowledged that management strategies in higher education organizations do not parallel the processe s in a business setting.Keeling, Underhile, and Wall (2007) discussed the silo nature of higher education organizations. They suggested the silos are 22 due to a primarily vertical organizational structure, where members of the organization are often competing amongst themselves for scarce resources. Green (2003) provided an alternate option to a bureaucracy, that being adhocracy. An adhocracy, a term popularized by Alvin Toffler in 1970 (as cited in Travica, 1999), is a flexible organization, which operates collaboratively with cross-functional teams and intercellular substance management. An adhocracy represents an organizational structure of the future not many examples of true adhocracies exist.Performance Funding Another option being explored by some is the concept of performance funding. Performance funding is the mechanism of being paid based on the higher education organizations accomplishments. Alexander (2000) explained that this transformation has resulted from the ackn owledgment that to strengthen their competitive positioning, states and nations must increase their involvement in the development of human capital and research through higher education (p. 412). Consistent with the increased expectations of higher education organizations, there has also been a change in the interaction between higher education organizations and the government.Governments are seek a greater level of production from higher education organizations, as well as an increased level of accountability and efficiency in the organizations use of public funds. Similar to societal expectations, the governments expectation of higher education organizations has increased in terms of the organizations return on its investment. The government expects expanded access and enrollment growth and is continuing to seek out new ways to measure productivity and efficiency in higher education organizations. Performance based funding has seen its largest increase in the last decade. In 2000 , three-quarters of 23 the states linked a portion of the state funding for higher education to performance measures.Higher education organizations continue to find themselves responsible to new state-mandated measures which require tracking and reporting of those measures (Petrides, McClelland, & Nodine, 2004). Liefner (2003) wrote about performance funding. He suggested that performance funding should be defined at the organization level. Governments should allow higher education organizations the ability to manage their organization on an individual basis and define goals based on the historical and culturally accepted framework of the organization versus being forced by an external body. Petrides and colleagues (2004) concurred with Liefner. Their research suggested responses to external mandates are not necessarily drivers of performance.External mandates are becoming more and more expectant in higher education funding provided by the federal government. orbital cavity (2010) explained, in an article in The Chronicle of Higher Education, that President Obama, more than his predecessors, is demanding results in exchange for funding. She explains that some administrators have seen this as meddling in their academic affairs. She states, Not surprisingly, the plans met with skepticism from colleges. Some community-college leaders worried that benchmarking could commute the balance of power from state and local governing boards to Washington, setting the coiffure for federal meddling in curricula (para. 18).Advocates, however, are praising him for increased accountability and assessment. The article concludes by explaining that higher education organizations will need to make the case for the funding they receive. This could be viewed as another form of performance funding but regardless how you label it, this requires higher education organizations to have an infrastructure that supports data gathering and metrics in order to be able to respond to the 24 requirements from the federal government to obtain funding that is required to run their organization. Accreditation A historically accepted manner to adjudicate the quality of higher education organizations is accreditation.Accreditation is defined by the federal government as Recognition that an institution maintains standards requisite for its graduates to gain admission to other reputable institutions of higher learning or to achieve credentials for professional practice. The goal of accreditation is to ensure that education provided by institutions of higher education meets agreeable levels of quality. (U. S. Department of Education, Office of Postsecondary Education, n. d. , para. 1) The Council for Higher Education Accreditation (CHEA, 2003) described accreditation as a process of external quality review used by higher education to scrutinize colleges, universities and educational programs for quality assurance and quality overture (p. 4).In the United States, there are mu ltiple bodies of accreditation for higher education organizations. Accreditation is regional, national, and specialized to individual disciplines. The definitions provided by the federal government and the CHEA speak specifically of quality. Quality within higher education organizations, however, has as many definitions as the number of people you ask. From the accreditators perspective, quality focuses more on the educational product delivered to the student rather than providing a direct linkage to the new expectations higher education organizations are facing. Specifically, the WASC, Senior Commission identifies four standards for accreditation.These are received I Defining Institutional Purposes and Ensuring 25 Educational Objectives Standard II Achieving Educational Objectives Through Core Functions Standard III Developing and Applying Resources and Organizational Structures to Ensure Sustainability and Standard IV Creating an Organization Committed to Learning and feeler (W ASC, n. d. c). Within each standard, there are references to leadership, vision, and strategic planning. However, none of the standards all the way articulates these new expectations, let alone the evaluation requirements to determine whether or not higher education organizations are meeting these expectations.The lack of focus provided by accreditation bodies on these new expectations, higher education organizations role in add to the nations economic state perpetuates the systematic issues higher education organizations face with little accountability, inefficient practices, and insufficient leadership. Higher education organizations, in order to maintain appropriate accreditation, are required to meet the WASC defined standards. If accountability, efficiency, and strategic leadership was clearly defined and articulated in terms of the new expectations of higher education organizations by WASC, then we would see an increased number of higher education organizations with these st rengths.As indicated by the literature, the current state of higher education in America, as we looked specifically at California, is volatile. The current budget state, the societal expectations, the lack of resources and bureaucratic organizational structures show higher education to be at a state of necessary change. Higher education organizations continue to cling to organizational systems and structure that have served them in the past, but these systems and structures are unstable and lack the forward-thinking, strategic 26 leadership that is necessary for higher education organizations to survive, let alone thrive and evolve into organizations that can be successful today and into the future.Organizational Structure and Management Tools Despite the trend for accreditation to focus on program outcomes, quality is not explored in terms of higher educations role in the nations economic state either via the students productivity in the workforce or via academic research. Given th is notion that accreditation is not providing higher education organizations with a checklist for evaluation, organizations are forced to find ways to manage this internally. In order to meet the new expectations, higher education organizations must examine their organizational structure and management strategies to restructure, change, and implement management tools that will allow them to evaluate how well they are responding to the new expectations.Keeling and colleagues (2007) discuss higher education organizations in the following manner The organization of institutions of higher education has been seen as operating with ambiguous purposes in vertically oriented structures that are only loosely connected. The rationale for this ambiguity is twofold (1) to allow for originative thinking, and (2) to respect and even encourage the autonomy of different disciplines. But ambiguity of purpose and vertical organization are at odds with thinking and expectations in an era of accounta bility and assessment, in which cross-institutional, or horizontal, reporting and measurement of institutional performance are highly regarded and increasingly demanded. (p. 22) 27 Keeling and colleagues argument was consistent with the new expectations of higher education organizations.The current structure of higher education organizations no longer fit in this era of accountability, efficiency, and productivity. Serrano-Valarde (2010) provided a similar argument, when she discussed the role of management consultants in higher education organizations. She described the new expectation of higher education as a release that occurred in the mid-1990s. The shift, she explained, was a shift in the perception of responsibility to society . . . to provide a locus for individual development, transmission of civic values and basic research . . . to became directly accountable for the nations economic welfare (p. 126). Serrano-Valarde discussed the role of management consultants in the ac ademic culture within higher education organizations.Prior to the shift of perception that Serrano-Valarde wrote of in 2010, Kotler and Murphy (1981) discussed the need for higher education leaders who had the strategic vision to serve as change agents. More than 30 years prior to Serrano-Valarde describing the need for management consultants, Kotler and Murphy argued few leaders are able and willing to focus systematically on change they are largely taken up in todays operations and results (pp. 470-471). This inability to lead change in higher education organizations still exists 30 years later, and Serrano-Valarde explained that this has created a need for management consultants who, once inserted in the organization, can serve as the change agents that most higher education organizations are lacking. Management consultants, regardless of the cause or their presence, open the door for higher education organizations to explore and implement strategies similar to business. The exp loration of these strategies is necessary as a response to the new expectations of higher education organizations the need for greater accountability, 28 efficiency, and productivity. Gumport and Sporn (1999) described opportunities within higher education organizations, which allow for the injection of management strategies, the opportunities for quality expectations which focus on public accountability, student learning, faculty productivity and performance, program effectiveness, and institutional evaluation (p. 11).They acknowledged, however, that management strategies primarily benefit the administrative structures and processes within higher education organizations. They argued that over time the strategies may reach and therefore benefit the academic side of the organization, as well. Common management strategies explored in higher education organizations include Total Quality Management (TQM), the Baldrige Program swag, and the Balanced Scorecard. Total Quality Management T otal Quality Management provides higher education organizations an opportunity to improve quality, increase performance, and decrease cost by utilizing the mechanisms of continuous improvement and cultural change throughout the organization (Chaffee & Sherr, 1992).According to Lozier and toddle (1996), the early adopters of TQM, in the mid 1980s, were largely community and technical colleges the cultivation component of their missions fit nicely with the principles of TQM. Lozier and Teeter explain, in order for higher education organizations to appropriately implement TQM, they need to first define quality as it relates to their organization. Secondly, the need to define their mission and vision and lastly implement processes which allow for continuous improvement. Total Quality Management relies on a total transformation of the organization, which is often difficult for higher education organizations which do not 9 operate in the pure top-down model like much of the corporate wo rld where TQM has shown to be most successful. The Malcolm Baldrige Award Framework The award, which is a government program initially developed for industry, was born-again into an award for education organizations in 1999. The Malcolm Baldrige Award evaluates organizations on seven categories including Leadership, strategical Planning, Customer Focus, Measurement, Analysis and Knowledge Management, Workforce Focus, Operations Focus and Results (Karathanos & Karathanos, 2005). Since 2001, the recipients of the Baldrige award have been mixed between K-12 schools and higher education organizations.The award recipients have been recognized for their improvement of academi