As I reported in the October issue of the Byrd Business Review, the Harry F. Byrd, Jr. School of Business (Byrd School) is actively engaged in a massive reengineering effort. I could not be any more pleased with our faculty as they are responding rapidly and decisively to our desire to strategically position our school, to enhance enrollment growth in both undergraduate and graduate programs, to increase student satisfaction, and to be a competitive force in graduating students for the global marketplace. As we discussed at our off-site faculty retreat earlier this year, we were going to put everything that we do and how we do it on the table and examine it. What programs should we be offering? Are there minors that should be introduced? Can we collaborate with other programs on campus? Where should we be offering our degree programs? Are we using the right delivery mode? Are we scheduling our classes in a way that will be most conducive for the working professional? Is our assessment program as strong as it should be? Are we providing the appropriate array of services for this community? Are we doing all we can to be the preferred school of choice in the Shenandoah Valley? These are many of the questions that I and the faculty reflect upon daily.

For me, reengineering a school means deciding the what, where and how of a business education: what should we be doing, where should we be doing it, and how should we be doing it? We want to grasp new opportunities, and we want to capitalize on characteristics that promote innovation: a cooperative team spirit, a willingness to accept risk, a propensity for change, and a clear focus on the ultimate goal. We want to take advantage of our talents and unleash our ingenuity. We want to hold true to a fundamental set of beliefs.

Our students come first, and we must please them with the education we provide. As a faculty member, what I do is important, but I must constantly add value to the education equation. I must accept ownership of problem situations and seek solutions; I must be constantly learning and improving; and we will succeed or fail together.

The Byrd School is not an endangered species; quite the contrary. We know, however, that we can be better, we can be larger, and we are intent on doing just that. This issue of the Byrd Business Review presents the work that has taken place over the past three weeks. That's not long, but these days it doesn't take us long to get things done. We are on a mission, and we have created an exciting, burning platform. Come by the office and feel the heat.

THE WEEKEND BUSINESS PROGRAMS: FROM NORTHERN VIRGINIA TO THE SHENANDOAH VALLEY

The degree completion program is designed for individuals who wish to complete their undergraduate degrees and improve their skills and marketability in the rapidly changing world of business. This unique program provides an opportunity for individuals to complete an undergraduate degree in an accelerated two-year format by taking classes on alternating weekends (Friday evenings and Saturdays) for a total of 22 weekends per academic year.

The weekend MBA is designed with an emphasis on the broad interdisciplinary approach for the preparation of the principled, global leaders of tomorrow. This program provides an opportunity to complete an MBA degree in an accelerated 16-month format by taking classes on alternating weekends (Friday evenings and Saturdays) for a total of 28 weekends.

To learn more about these exciting programs, please contact the Office of the Dean at 540-665-5428.

NEW COOPERATIVE PROGRAM: MBA/MSN (HEALTH SYSTEMS MANAGEMENT TRACK)

Patterned after the highly successful cooperative MBA/PharmD program, the Byrd School and the Division of Nursing are teaming together to offer this exciting joint program, combining the MBA with the Master of Science in Nursing (Health Systems Management track). The combined program will prepare nurses with advanced knowledge, skills and experiences for leadership positions in hospitals and other health-care facilities. Nurses will be prepared to lead and manage various types of nursing and health services across an array of health settings and specialties.

ASSURANCE OF LEARNING: CONTINUALLY IMPROVING THE ASSESSMENT PROGRAM

Dr. Bruce K. Gouldey, Associate Professor of Finance and Chair, Curriculum and Assessment Committee

The current outcomes assessment system in the Byrd School has many strengths and has been recognized for its distinctiveness. Nevertheless, improvements can be made in both its undergraduate and graduate programs. Future enhancements will include: ensuring that all assessments are direct; all assessments will be at the individual level (group scores cannot be assigned to the individual level); all core courses will need to use the integrative case (benefits the assessment program as well as integrating the core courses for our students); and all sections of the same core courses will need to use the same assessment method. Sedona will be used for data collection and as a storage vehicle, for keeping the audit trail for the forthcoming AACSB maintenance review and for producing statistical reports. Faculty will continue to report to the Curriculum and Assessment Committee on every core course through a short memorandum with three sections — assessment method, results summary and action plan.

THE BYRD SCHOOL: SERVING FIRMS DURING TIMES OF ECONOMIC STRESS

The Byrd School’s Advisory Board will offer a one-day symposium, “How To Prosper In and Survive the Current Economic Crisis,” on Tuesday, March 10, from 9:30 a.m. to 3 p.m. in Halpin-Harrison Hall. Topics will range from “Reinventing Your Organization to Survive and Thrive,” to “Cost Cutting,” “Financing Options and Strategies,” “Selling a Business,” “Stress Busting,” “Human Resources Options and Strategies” and more. This hands-on practical program will provide attendees with information and tools they can apply to their businesses during tough economic times. More information will be forthcoming in the next e-letter. For information, contact the business school office at 540-665-4572.

THE ECONOMIC SITUATION: AN ECONOMIST’S VIEW

Dr. Clifford F. Thies, Eldon R. Lindsay Professor of Economics and Finance

The following statement is provided by Dr. Clifford F. Thies, Eldon R. Lindsay professor of economics and finance in the Byrd School.

I thought I would share the following “reading” I gave to one of the country’s premier survey-takers of consumer confidence, in response to his latest monthly poll.

Your data speaks powerfully to the fundamental problems facing our country, and why conventional fiscal and monetary policy might be insufficient.

First, in terms of old-fashioned Keynesian fiscal policy or old-fashioned monetary policy, the idea that we can spend our way out of our predicament is questionable, given the concerns of people for restoring their household “balance sheet,” dramatically illustrated in your survey.

Your survey shows that households perceive their balance sheet position has been drifting in a downward direction over the past year and has fallen precipitously during the past month, reflecting the accumulation of debt and the fall in value of assets. This perception of financial weakness is true especially among better-off households, probably because of the loss of equity in their homes, the collapse of the stock market and the risks of higher taxes and inflation.

Even though these households might have unused borrowing capacity, they are looking to increase their savings rather than to borrow in order to spend. The reason for this reluctance to borrow in order to spend is because of the uncertainties they express about future income (even though more people report an increase in their income over the prior 12 months than report a decrease).

Households are not yet seeking to take advantage of the bargains we are beginning to see in the prices of homes, automobiles, vacation travel and discretionary big-ticket household items such as rugs, major appliances and high-end electronics.

It is not clear that tax rebates would result in many of these people increasing their spending, because of their concern for restoring their household balance sheet position. New spending by government might not work either, because of increased awareness of the future implications of continued deficit spending.

Easy money and low interest rates might not do the trick, because the problem is not the lack of money to lend by banks, or credit rationing by banks, but the shortfall of credit-worthy persons and businesses seeking to borrow. That is, it’s not that banks are turning away good loan applications, but that potentially good borrowers are not making applications for loans in the first place.

The problem is one of a lack of borrowers and not a lack of lending, which is illustrated by other survey information, including that of small businesses conducted by the National Federation of Independent Business.

As an economist, I would say that policies directed to support home values and stock values are what is needed. Now is not the best time to jack up taxes on real and financial wealth, such as through sky-rocketing assessments on real estate by state and local governments in various places in the country and by the federal government ending the capital gains tax preference.

To put it another way, if and when there is some confidence in the values of the assets owned by households, it is predictable that the cash and borrowing capacity they are building up will be used to take advantage of the bargain prices and low interest rates that are out there.