Entrepreneur’s Diary #78 – Let Us Assume I Am a Professor …

… I wonder if I would still be as driven by numbers as I am now.

As I see it, you cannot do the best of jobs controlling a medium-sized, manageable enterprise by numbers and target setting. On the contrary: I believe it is detrimental if you plan and report too much. The entrepreneur should make better use of his time by taking care of his employees, customers, partners and suppliers.

In order to give reasons for this opinion, let me today compare

professors with entrepreneurs, chairs with enterprises.

Holding a university chair can be compared with owning an enterprise in the brain-working sector, just like a chair holder is like an entrepreneur. The enterprise will be judged for its turnover and profit, along with its growth. So – what are the factors that determine the “performance” or achievement of a university chair?

Let me try to give a few indicators that might serve to evaluate the achievement of a university chair and the professor holding it.

  • The number of students attending his lectures and seminars.
    What should be the basis: the number of students who “registered” or the number of those who “actually go and listen to the lecture”? Is the relation between the two relevant? What about those who watch the lecture on the internet? What does it mean if the number of students dwindles? If you take this aspect, you would probably have to consider the general tendencies (lower birth-rate, trends). Is the percentage of non-German students relevant for the result of the evaluation? What about the number of female and male students? And how about the number of certificates awarded to the students and the grades they got in examinations?
    That is also an area where you might be more sensitive. Maybe you could award extra bonuses for non-obligatory or inter-disciplinary achievements. Or you might distinguish between the grades in major and minor subjects?
  • The number of people working for the chair.
    Perhaps the average age and the number of women is also relevant?
  • The number of diploma and doctorial theses supervised at the chair?

    Should you only consider those that actually were finished each year? Or should you also take into account how they were graded and how long it took the students to write them?
  • The number of publications by the chair.
    Would you have to count the number of publications or the number of pages? And what about the difference between those published in journals with a better reputation, as opposed to less relevant ones?
  • The sum of money acquired from third parties.
    It might be quite a simple criterion for evaluating the performance of a university chair.

Well, it is quite simple – all you have to do is refine the list a little, then come up with a sophisticated evaluation pattern and then you add the results in order to get a fair evaluation grade.

At first sight, it all sounds quite plausible, doesn’t it? Yet, you will soon find out that it cannot and will not work. There will be very strange consequences, yet the quality of the lectures will not improve. Although they now actually started evaluating the quality of university chairs in precisely this way for the “excellence offensives”.

Thinking in terms of enterprises, it would mean that a good professor would have to increase the number of his students, assistants, doctorial and diploma theses, publications, etc. every year. Until at last the lecture hall will burst. You would have to structure your activities in a very target-oriented way in order to fulfil the relevant criteria. Unfortunately, this is exactly what happens – and it causes a flood of doctorial theses at some universities. It is more important to publish than to get excellent results. In fact, in the USA, the number of publications is already on the way up.

Except the quality of a professor should manifest itself in other ways. Basically, all he should be able to do is deliver good research and good teaching. And be a good leader to his team. He should put all his energy into making it possible for his students to learn a lot and making his customers (the students) happy. Then he will be highly regarded in various circles and his reputation and standing will grow.

But isn’t it the same with enterprises and entrepreneurs?

Do you have to – or can you – represent the reality of an enterprise in numbers at all? Do you need all those lists and spread sheets, especially if we are talking small and medium-sized enterprises? Do we need this high degree of precision in the planning process?

First and foremost, you have to invest a lot of precious time in the planning. And then there is the time you need for finding out what went wrong. That is what I call time wasted twice.

What about focussing on the people working in the enterprise and the customers? What about further developing the product, being ready to accept change and allowing good ideas to flourish? What about trying to remain close to reality and establishing a good entrepreneurial culture? Because if you gain those qualities, the numbers will automatically improve. Let it be accompanied by a budgeting that follows common sense in a reasonably economical way and you have all you need.

Neither reading numbers nor reading tea leaves will tell you what mistakes you made with the customers!

And why is it that enterprises always have to grow? Why should entrepreneurs constantly try to find out how they might best increase the turnover and profit? Why not look and see what you can improve, instead? You will not get bored.

Why not restrict yourself to one market, give quality priority over quantity and value over mass?

Isn’t the same true for entrepreneurs as for professors:    
If they do their job well, the turnover will grow and so will the outcome. Just like this.

So, my dear entrepreneurs, do not bother to analyse your BWA, burden centre, boss sheets and balance sheets for days. Instead, use the time for business, the customers and the employees! For the future!

And, dear Professors, why don’t you do the same? Let the score cards sent by the ministry not affect you.

Improve the quality of research and teaching at your university, take care of the people and the university. And forget criteria and growth.

Simply because we need a better future! As a result, both you and we will constantly get better and the success will come by itself on many levels.

But I notice more and more similarities between entrepreneurs and universities as time goes by. And then I prefer remaining an entrepreneur.

RMD
(Translated by EG)

P.S.
Click here Drehscheibe for all the articles of my entrepreneur’s diary.

RMD

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