INSTITUT TEKNOLOGI BANDUNG

SCHOOL OF BUSINESS AND MANAGEMENT

INDONESIA BUSINESS CASE CENTER (IBCC)

This case was written with the courtesy of Indonesiantower 004-02-07-07

THE MANDATE FOR CHANGE AT MBA INSTITUT

TEKNOLOGI BANDUNG

In December 2004, Jann Hidajat (JH), the Director of MBA-ITB in Bandung, Indonesia,
reflected back to year 2003 when he first received a mandate to improve the MBA
programs quality to be the best business school in Indonesia by 2006. He wanted to
analyze, a week before his resignation, whether the School has arrived to the objective
he first initiated and if the program was progressively becoming a learning organization
he initially had planned.

Global Education

Increased competition in the global education market and the shifting of educational
destination from the West to the East marked the condition in the global education
market in the past few years. Even though the ranking conducted by one of the most
prestigious academias ranking, the Londons Times Higher Education Supplement
(THES) showed that eight of the top ten slot belonged to US universities, more diverse
rankings were depicted beyond the top ten. More than 30 countries contributed to the
top 200 list in 2007. Specifically, Beijing University, the National University of Singapore
and the University of Tokyo all won the top 20 list.

________________________________________________________________________
This case was written by Joyce Litani under the supervision of Prof. Dr. Jann Hidajat Tjakraatmadja from
School of Business and Management Institut of Teknologi Bandung. It was prepared solely to provide
material for class discussion. The author does not intend to illustrate either effective or ineffective handling
of a managerial situation. The author may have disguised certain names and other identifying information
to protect confidentiality.

IBCC prohibits any form of reproduction, storage or transmittal without its written permission. To order
copies or request permission to reproduce materials, contact IBCC at Sampoerna School of Business and
Management ITB. Sampoerna Strategic Square, Tower B, 8th Floor. Jl Jenderal Sudirman Kav 45.
Jakarta 12930. email: ibcc@sampoernasbm.itb.ac.id

Copyright 2007, Indonesia Business Case Centre (IBCC)

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The best universities were marked by their international programs with foreign
exchange programs and joint degree programs.

Ultimately, the winners in the new global education race will be those countries
with institutions that are the most international at every level. They will boast
multicultural student bodies, elite foreign campuses, offer internationally
recognized degrees and, no matter where theyre based, will teach in English
still very much the global language of business, research, and technology.
Emily Flynn Vencat, Business Week, August 2007.

The shifting from the West to the East was triggered by most notably the 9/11 event
leading to restrictions of international students to enter the US. Additionally, global
economy had shown exceptional growth in Asia, particularly in India and China. Even
though demand for qualified professionals in India and China was rising, the education
system barely supported the demand.

Asian universities have begun investing in resources into local schools in order to
prevent brain drain. China was planning to spend an estimated 0.5 of its annual GDP on
higher education and up to 4 percent in coming years in comparison to Europes 1.1
percent and the US 2.7 percent. Furthermore, to attract more students, many Asian
universities have offered the entire degrees in English. The result was astounding: more
than 20 percent of Chinas college-age population had received tertiary education which
was up from 2 percent a generation ago. Additionally, India had planned a $1 billion
revival of the countrys ancient university, Nalanda, which was last open in A.D. 11971.
Needless to say, the Asian region was gearing up to become a hothouse in the
educational sector.

Brief History of Indonesian Universities

Shortly after the proclamation of independence of Indonesia on 17th August 1945, the
Indonesian government formed the Balai Perguruan Tinggi Republik Indonesia (BPTRI)
or The Republic of Indonesia Institute for Higher Education in Jakarta comprising of
the faculties of medicine and pharmacy, and literature and law. When the Dutch
colonial army occupied Jakarta by the end of 1945, BPTRI was relocated to Klaten,
Surakarta, Yogyakarta, Surabaya, and Malang. Concurrently, the Dutch colonial army
which had occupied the big cities in Indonesia by 1946 established an Emergency
University in Jakarta in 1946 by the name of Nood Universiteit. It was later changed to
Universitaet van Indonesie (UVI) or University of Indonesia.

After Jakarta became the country capital once again, the Indonesian government
established a state university in Jakarta in February 1950 called Universitaet Indonesia,
comprising units of the BPTRI and UVI. It was later changed to Universitas Indonesia
(UI). UI was originally a multi-campus university with faculties located in Jakarta
(Medicine, Law, and Literature), Bogor (Agronomy and Veterinary Medicine), Bandung
(Engineering, Mathematics, and Natural Science), Surabaya (Medicine and Dentistry),
and Makassar (Economics).

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In 1954, Surabaya campus was named Universitas Airlangga; in 1955 the Ujung Pandang
(Makassar) campus became Universitas Hasanuddin; in 1959 the Bandung campus
became Institut Teknologi Bandung (ITB), and the School for Physical Education in
Bandung became part of the Padjajaran University in 1960. Furthermore, the Bogor
campus became Institut Pertanian Bogor (IPB) and the Faculty of Education (FKIP) in
Jakarta became IKIP Jakarta.

Institut Teknologi Bandung (ITB)

Institut Teknologi Bandung (ITB) was founded on March 2nd 1959. However, the
Schools history went back to 3rd July 1920, when the local authority at the time founded
the School (originally named De Techniche Hoogeschool te Bandung) in order to meet
the demand for technical-based workforce in the country.

In the first decade since its inception, ITB began to develop and equip the institution
with the required infrastructure. Consequent departments along with the required
human resources system were developed. Many of the teaching faculty members were
sent overseas to increase the quality of teaching of the School.

In the next decade (the 1970s), ITB faced organizational changes in which the academic
units were transformed into functional units that ITB became a semi-autonomous
institution. The internal infrastructure facility was becoming more functional in this
decade.

ITB was modernized significantly in 1980s. The campus physical facility was improved,
the number of graduates was increasing and master programs in various faculties were
commencing in this decade. The progress was mostly contributed by the nationwide
improvements in socio-politic and economic sectors. In 1990s, ITB had then developed to
26 departments, 34 master programs, and three doctoral programs encompassing
science, technology, art, business, and humanities.

In the 2000s, ITBs legal status changed from being a state-owned university to state-
owned legal entity (Badan Hukum Milik Negara = BHMN) through the governmental
regulation No. 155/2000, through which ITB was given more autonomy both for
academic management and human and financial resources. State university with legal
status was unprecedented in the history of university establishment in Indonesia.
Globalization and the governments limitation in funding state-owned university was
the main reason why ITB became one of a state-owned legal entities since the
competition in the global market was becoming more intense. In order to increase
national competitiveness, the country needed a national university to develop
democratic society with global competitiveness capability.

On December 31st, 2003, SBM ITB was declared through the decree No 203 of ITB
Rector, Dr. Kusmayanto Kadiman, as the first School at ITB. Since then, ITB was
comprised of two types of institutions, Faculty and School. School was differentiated
than Faculty, in that the School was granted more autonomy than the Faculty. It meant

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that any Faculty qualified for independence from ITB would be granted autonomy
status. SBM was the first School projected as a model School as a result of the legal
status change. Since its inception, SBM was encouraged to be independent both in
academic and human and financial resources.

SBM-ITB was located in ITB campus Bandung, West Java, Indonesia, and offered two
distinctive programs: Master in Business Administration (MBA), and Undergraduate in
Management Program.

Our long-lasting reputation as a science, technology and art based institute in

Indonesia was supplemented by the establishment of SBM-ITB in December
2003. We have already been well known locally, regionally and internationally
for providing innovative, relevant and academically rigorous programs. We also
understand that the challenges and problems facing managers in todays
complex business environment do not lend themselves to quick-fix solutions. It is,
therefore, our duty to develop programs for the participants ability to unravel
problems and conceptualize alternative solutions so critical to the successful
strategic development of their organizations, stated Prof. Dr. Surna T.
Djajadiningrat, SBM Dean.

SBM-ITB started with 13 faculty members in 2003. Most of the faculty members at SBM -
ITB received their postgraduate education from overseas universities in an effort to
build international orientation for the School. The Faculty was subdivided into six
knowledge groups: (1) Decision Making and Negotiation Strategy, (2) People and
Knowledge Management, (3) Business and Marketing Strategy, (4) Entrepreneurship
and Technology Management, (5) Business Risk and Finance, and (6) Operations and
Performance Management. In addition to the faculty members, the School hire full-time
and part-time tutors, most of whom were graduates from MBA-ITB program. See
Exhibit 2 for SBM-ITB Organization Chart.

The SBM-ITB vision was to create future leaders in business and develop a critical mass
of entrepreneurs for Indonesia to become a modern society respected by the world
community. Along with the vision, the schools mission read: (1) to teach our students
to become future business leaders, (2) to develop a world-class institution that promotes
a knowledge base in the field of business and management, and (3) create a positive
impact to the community at large.

To develop SBM as a school capable of competing globally and independently, SBM-ITB

focused on the three pillars to build business school excellence as follows:
1. Excellent faculty with experience in business school education
2. Excellent facilities to support active learning education model
3. Strong industrial links and support by sponsor

The Management Education in Indonesia and SWA Ranking

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Competition to get the best candidates as well as for job placements for national MBA
Schools Graduates was very tight in comparison to other non-business schools
competition. Since the economic crisis hitting Indonesia in 1998, Indonesian companies
were in dire need for workers with good qualification in business and entrepreneurial
skills. In contrast, Indonesia was lacking well-established business schools to fulfill the
workforce, let alone those with a good international standard. After the economic crisis,
none of the business school in Indonesia had accreditation by international organization
such as Association to Advance Collegiate Schools of Business (AACSB) and / or
European Foundation for Management Development (EFMD).

The management education in Indonesia was also undergoing fierce competition in the
globalization era. SWA Magazine surveyed thirteen business schools previously ranked
by Badan Akreditasi Nasional (BAN) or the National Accreditation Body. The ranking
order for the best business schools in Indonesia as surveyed by SWA Magazine in 2003
were: (1) Management Magister (MM) Universitas Indonesia, (2) Sekolah Tinggi (ST) -
School of Higher Education Manajemen Prasetya Mulya, (3) ST Manajemen IPM, (4) MM
Universitas Gajah Mada, (5) MMA, Institut Pertanian Bogor, (6) MMBAT Institut
Teknologi Bandung, (7) ST Manajemen PPM, (8) MM Bina Nusantara, (9) MM
Universitas Trisakti, (10) MM Universitas Parahyangan, (11) ST Manajemen Bandung,
(12) MM Universitas Indonusa Esa Unggul, and (13) MM Universitas Atmajaya
Yogyakarta.

According to the survey, there were five main criteria the correspondents based their
nominations on: (1) comprehensive curriculum according to the changing management
education market demand (20.13%), (2) quality of the faculty members (19.29%), (3)
well-known campus (10.48%), (4) good facility (10.69%), and (5)the graduating alumnis
acceptance percentage into the workforce (9.64%).

The ranking was conducted encompassing three criteria: brand awareness (top of
mind/TOM), image study, and satisfaction study. Brand awareness was measured to
determine the schools more recognized by students. The image study was measured to
determine the participants perception on the thirteen business schools measured.
Thirdly, the satisfaction study measured the satisfaction level of the participating
schools. Additionally, the attributes measured were TOM, best brand, image score, and
satisfaction performance.

MBA-ITB History

The history of MBA-ITB had its origin to the year 1971 when Matthias Aroef established
the Industrial Engineering Undergraduate Program under the Industrial Engineering
Department ITB. He then founded the Industrial Engineering and Management (IEM)
Master Program and Doctorate Program in 1982 and 1985 respectively. Since 1980s,
Matthias expressed a desire for ITB to run four Faculties: Industrial Engineering Faculty,
Management Faculty, Economic Faculty and Social Studies Faculty. Two of the four
Faculties have been established, and as the case was being written, the latter two
Faculties have yet to be established.

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Matthias Aroef established the MBA program officially in 1990 under the name of
Master of Management in Business Administration Technology (MMBAT) with the
decree by the Higher Education Directorate General and was officially renamed MBA in
December 2003. In 1990, some faculty members from IE were promoted to develop
MBA program. From the beginning, they faced a heated discussion to decide on the
education system most appropriate for an MBA School. In conclusion however, they
could not come to good conclusion to differentiate IEM and MBA, thus the first MMBAT
program was run with strong focus on engineering and science as a foundation of
education system.

The values, vision, and mission adopted by the MBA-program were described as
follows:1
Values: Moral and ethics, integrity, diversity, and high impact.
Vision: Developing new leaders in business and creating a critical mass of entrepreneurs
for Indonesia to become a modern society and highly respected by the world
community.
Mission:
1. Educate and develop new business leaders
2. Build an institution that inspires the development of business and management
practice
3. Make impacts and influence the improvements of quality of life of Indonesian
society

With the changing global environment, MBA-ITB was mandated to be the best MBA
School on the national level and good reputation on the international level because of
the following:
Increasing national requirement for business leaders with management and
business skills to meet the challenging global economic development and
competition
Given its strong focus in science and technology, the program needs to integrate
the utilization of technology with good management skills
Indonesias economy was growing and new industries requiring
entrepreneurship skills were flourishing
Indonesia needed more business leaders who cared about social responsibility
and high ethical standards

Another organizational change experienced by MBA-ITB was the inclusion of the

program into the SBM-ITB as mandated by the decree of ITB Rector on December 31st,
2003. Surna Tjahja Djajadiningrat became the first Dean of SBM nominated at the
establishment of the School.

Jann Hidajat (JH)

1
Delivery Method MBA-ITB presentation by Jann Hidajat, September 2005

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In July 2003, JH was nominated MBA Director with Vice Director Sudarso Kaderi
Wiryono. Under the leadership of JH, MMBAT changed its name to MBA.

JH had an extensive experience in the academic world. His career started in 1978 as a
lecturer at the Industrial Technology (IT) Faculty of ITB. In 1995, he shifted his academic
focus from engineering to management and focused on the discipline of Management of
Technology.

His first career was as the Head of Method Study and Ergonomic Laboratory at the IE
Department during 1978-1981 and 1985-1990. In 1994-2002, he was the Coordinator
Secretary of Management Studio of IE department of ITB, and in 2002-2003 he was
elected the Head of Management Studio.

JH was actively involved in developing the new MMBAT-ITB graduate program in IE

deartement of ITB. He was first a Vice Director of Resources MMBAT-ITB Program
during 1990-1994. In June 2003 he was nominated as the third MBA-ITB Director,
whereas the previous positions had been held by Matthias Aroef (1990-1999) and Ubuh
Buchara (1999-2003).

Improvement Program

A typical MBA program in Jakarta and vicinity possessed the following characteristics,
as presented by JH during a management association meeting in August 2003:
The most competitive program among other higher education programs and
should be managed with a professional approach.
The students candidates profiles were the working group with limited access
and opportunity for management education

When JH first received his new assignment,
members from IE department, 5% from other
were practitioners from businesses/industries.
faculty at the time and it was reflected in
instructors-students relationship.
the MBA program has 90% of faculty
departments in ITB and the remaining
The program did not employ full-time
the weak academic system and poor

Curriculum and learning systems followed closely to those in IEM graduate program.
Students were protesting the system since with four times the tuition fee of IEMs, the
MBA program should have a significant quality difference. MBA ITB did not offer any
concentration as well, but in general the curriculum was a typical manufacturing
management curriculum.

JH conducted a small-scale research to help understand the condition of MBA Program

in 2003. The research unveiled the following:
Strong lecture-based teaching
Strong science and technical emphasis in the classrooms
Technical program orientation

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No significant curriculum differentiation between Industrial Engineering

Management and MBA
Poor intake students quality (required passing grade for TOEFL: 450 and GMAT
like: 270)
Lack of international students
Low percentage of students with working experience (average of 10%)
Lack of industrial partnership
Small library collections
No system implemented for Faculty evaluation
Faculty often postponed or changed class schedules (5% - 28% of the time per
class) and changed the course materials according to own preference
No training and scholarships available to Faculty development.
Unpopular
Indonesian language use in classes instead of English
Lack of supporting facilities
Lack of industrial relationship and sponsorship

Additionally, details of MBA-ITB SWOT analyses were presented in Exhibit 3.

Among other universities in Indonesia, ITB was well known as the biggest and best
technological university in Indonesia, also with good national and international
reputations, and good network with both government and private sectors.

MBA-ITB transformation occurred during a dynamic era in the Indonesian job market.
Since the economic crisis in 1998, Indonesian job market was in great need of more
graduates highly skilled in technical, managerial, and emotional skills to improve the
national industry and business competitiveness. This condition triggered many
business schools in Indonesia to improve the quality of their education and aim to
become world class institutions.

For the objective of improving the MBA program at ITB, JH and his team benchmarked
the organizational working of the program to several neighboring business schools
within Asian regions such as Nanyang Technological University, Singapore
Management University by conducting personal visits to these universities. The
benchmarking items were on several improvements objectives such as faculty,
curriculum, facilities, and others.

He stated in the first meeting with MBA faculty members in August 2003, MBA ITB
needed to change, from strategic level to operational level. He presented several key success
factors as follows:

1. MBA-ITB Graduates should have competencies in accordance to the hiring

companies requirement.
2. MBA-ITB School should have: (1) Faculty with excellent competencies in
lecturing (and case teaching methods) in par with global business schools and
willing to undergo performance evaluation; (2) updated and contextual

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curriculum; (3) active class learning mechanism; (4) discipline in meeting lecture
hours; (5) excellent facilities; (6) academic environment conducive for active
learning, team work, and close interactions between Professor and students
(close, warm, and respectful); (7) quality assurance system to measure and
evaluate academic quality and lastly (8) excellent back-end services such as
administration and information services.

JH also proposed a learning process implementation as described in Exhibit 4.

Teaching Faculty Improvement Program

Jann enforced faculty commitment in teaching. He reshuffled the Faculty by ordering a
reapplication process for all the faculty members. Those who did reapply must express
a higher commitment. The proposal was initially met with negative response from the
Faculty and many never returned to the School.

JH was assisted by Dr Dermawan Wibisono (DWB) in implementing the program. DWB

returned to Indonesia after obtaining his Doctoral degree in Performance Management
at University of Bradford, England, in May 2003. Along with Utomo S. Putro (USP) who
had returned earlier from Tokyo Institute of Technology, Japan, with his Doctoral
Degree in Decision Science, they teamed up with JH to improve the MBA-ITB program
quality.

DWB assumed the position of the Quality Assurance Coordinator during 2003-2005.
The goal was to enhance the quality of Faculty teaching. Faculty members were
evaluated on educational background, teaching and practical work experience, case-
teaching ability, and students evaluation. The previous system did not emphasize on
these qualities. The old system relied heavily on educational background and
presentation skills with the absence of students evaluation. Under the new system,
when the students evaluation grade was lower than 70 percent, the Faculty members
had to sit in lectures and were prohibited from teaching. If the grading was above 80
percent, they could continue lecturing. Statistics showed that the fluctuation of grading
was +/- 5%, indicating a fairly objective evaluation.

Curriculum Improvement Program

The teaching curriculum was also the subject of improvement. Previously, faculty
members taught different versions of curriculum according to what seemed best to each
person. It was lacking quality and consistency. JH initiated a system to compile a
uniformed curriculum that was transferable to other lecturers.

In the process, the recruitment of new teaching faculty members uncovered a dilemma.
The management education was lacking qualified lecturers with equal qualifications in
academic and industry. Applicants with strong academic background lack industrial
experience in general and vice versa. However, evidence of international business
schools depicted that quality of lecturers was correlated with equally balanced academic
and real-life skills. To solve the problem, the school started inviting industry
practitioners as key note speakers weekly.

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The focus of the curriculum was also changed from Industrial Engineering focus to
humanity and business ethics as basic core, with concentration in Operations
Management, Strategic Marketing, or Management of Technology and
Entrepreneurship.

Increasing the quality of teachers was not sufficient if not complemented by raising the
standard for student admission. DWB further implemented students application
requirement system, including a passing grade in TOEFL and Graduate Management
Admission Test (GMAT). The passing grade in TOEFL was further increased
incrementally by 50 each year to reach 500.

Learning Experience Improvement

After learning more from top overseas business schools, MBA-ITB began to adopt case-
teaching method, although not without its challenges. Beginning with the facilities, the
school had to redesign the lecture theatres. From amphitheater style, it was changed
to U shape for ease of discussion. Additionally, lecturers have to be trained to teach
with cases. The improvement program included setting up a scheduling system for
students to have discussions in the syndicate rooms. Lecturers would actively monitor
students discussion and assisted in their initial case discussion.

Teaching delivery method was to be improved as well. With the focus of becoming a
global business school, lecturers ought to conduct their classes in English. The new
language use was initially an inconvenience to the lecturers since Indonesias education
system had not been adopting the use of English language previously. But since the
majority of MBA-ITB lecturers have taken their postgraduate degrees, they were all
expected to deliver the lectures in English by year 2007.

The improvement was also aimed to improve students communication skills through
initiation of debate. USP and DWB implemented the students debate program initially
scheduled to air on a national television and would be conducted in English. It was
designed to be highly academic using real life information, but also fun-oriented at the
same time. The debate still continued until this case was written, however, the
television program was later abandoned.

Students Grading System

Students grading system was also improved by increasing transparency in the grading
system. Previously, only final grade was revealed to students, but with the new system,
all the contribution grades were revealed. The new system was warmly welcomed by
students.

The students final project was also modified. What was previously more technical in
orientation was changed to consulting-style oriented. The final presentation was also to
include an executive summary comprised of problems and solutions. The final project
presentation was initially designed to be conducted in three steps. First, the student and
Faculty visited the company to formulate the problem. Then, the student formulated the
methodology and conducted interviews for data gathering purpose. Lastly, students
would conduct the presentation of oral and written reports.

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Faculty treatment to students was also different. MBA-ITB was becoming more
customer oriented, i.e. more human and friendly. Awards were presented to cum-laude
graduating students. First, it was a gold ring award, and later changed to a gold pin and
then a trophy.

Facility and Human Resource Improvement

The improvement program in facility and human resource involved redesigning the
criteria for merit contributing to the salary grading. Aurik Gustomo was specifically
asked by JH to implement this specific program. Previously, the component was
emphasized on the seniority of the faculty members. Aurik Gustomo and his team
redesigned the merit component and its allocation as described in the table below:

No Merit Component Criteria Allocation

1 Position Competence-Based 25%
2 Accomplishment Accomplishment 25%
Discipline 20%
3 Potential Education 20%
Experience 10%

Employees Salary System Improvement

Aurik Gustomo also assisted JH in implementing the employees salary system
improvement. The improvement in salary system was based on the MBA common goal
of the MBA program towards operation excellence and the short-term goal to become
the best MBA Program in Indonesia by 2008. To achieve this goal, AG designed the
program to receive the support of competent, professional, honest, and committed
human resources and by conducive environment, through excellent human resources
management.
The Handover
Since the establishment of SBM-ITB on December 31st, 2003, JH took on the role as MBA-
ITB Director and the Vice Dean of Academic Resources. In December 2004, he
relinquished the position of MBA-ITB Director to Dwi Larso.
During the handover period at the end of 2004, JH stated several important issues
during an interview as follows:
1. Question: What are some of the work plans yet to be accomplished?
JH: There are still plenty of them. For one, I have not implemented the
classroom English use. Additionally, the curriculum materials were yet to be
uniformed across the faculty members and the learning facilities had yet to be
developed to meet the international standard. Lastly we were not yet able to hire
international faculty members and admitted international students to the program.
2. Question: Conceptually, what is the ideal SBM you expected to create?

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JH: I have pictured SBM as an international school of business and management

that is independent, which means, able to be a Learning Organization to support the
implementation of Knowledge Management on campus.
3. Question: Why was the intended concept had not been achieved thus far?
JH: To achieve the intended goal, firstly, we would need internal resources,
specifically financial resources for development purposes and also to offer
appropriate incentive for the faculty members and SBM staff. The funding is also
central to the establishment of the facilities as well as the management system we
try to avoid placing the burden on the government, ITB institution or students.
Secondly, SBM needs a solid support from the government and ITB in the form of
regulation and conducive system to implement the autnomy concept at the Faculty /
School level.

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Exhibit 1
Key Performance Indicator US Official MBA

1. Average GMAT Score

2. Average starting salary
3. Percent of students with working experience
4. Percent of new applicants rejected
5. Computer use in the curriculum
6. Number of computers per business student
7. Students / faculty ratio
8. Number of companies recruiting on campus
9. Percent of MBA graduates getting jobs
10. Program Desirability
11. Size of entering class
12. Undergraduate / graduate business student ratio
13. Percent of courses taught in MBA-dedicated rooms
14. Percent of senior faculty
15. Percent of doctorate faculty
16. Percent of faculty who publish articles
17. Percent of faculty who publish textbooks
18. Percent of faculty who publish online
19. Articles published per faculty
20. Textbooks published per faculty

Other criteria:
The School:
1. public/private university
2. School accreditation
3. Tuition requirement
4. Size of the MBA program enrollment
5. Cost of university-provided housing

The Students:
1. Average GMAT Score
2. Work experience vs without work experience
3. Average MBA student age
4. Ratio women to men
5. Percentage of minority students
6. Percentage of international students

The Classes and Curriculum

1. Number of students per class meeting
2. Course structure lock step / unstructured
3. Level of computer use
4. Technical orientation
5. Style of teaching
6. Educational philosophy

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 Exhibit 2
School of Business and Management ITB Organization Chart in 2003

RECTOR ITB

SCHOOL SENATE DEAN SBM BOARD OF ADVISOR

Vice Dean Vice Dean
Academic Resources

INTERNATIONAL
ADVISORY COMMITTEE

SCHOOL
ADMINISTRATOR
QUALITY ASSURANCE

FINANCE
MBA PROGRAMME
ACADEMIC
PROGRAMME ACADEMIC HUMAN
UNDERGRADUATE INTEREST GROUPS RESOURCES
PROGRAMME

PLANING & IT
ACADEMIC ADMINISTRATOR
AND STUDENT SERVICE FACILITIES
 Exhibit 3
SWOT Analyses

Strengths
Strong science and operations management knowledge
90% of teaching Faculty had Industrial Engineering background
MBA students strong in quantitative skills
ITB reputation in the national and international educational field
Weaknesses
No significant curriculum differentiation between Industrial Engineering
Management and MBA Program.
Frequent change of class schedules and course material by Faculty
Lack of access to other Facultys teaching materials
Lack of practical based knowledge lending to lecture-centered classes
Lack of core concentrations
Heavy emphasis on technical and scientific solutions
Indonesian language use in classrooms
Medium quality of class and learning facilities
Minimal library facility
Teaching Faculty were not solely business graduates
Many teaching Faculty were part-time based
Lack of case-teaching skills
Only 5% of the Faculty were business practitioners
Poor students intake quality with acceptance requirement grade of TOEFL: 450
and GMAT: 300
No international students
90% of students were Bachelor fresh graduates
Small percentage of Professionals in Bandung area
Lack interpersonal skills among the MBA graduates
Lack of close partnerships between Faculty and students
No investment in training and scholarship for academic and administration staff
No international accreditation and no evaluation system for Faculty
Lack of industrial relationship and sponsorship
Poor program promotion
Opportunities
Indonesia was in dire need of skilled professionals in entrepreneurship and
operations management
Low demand in the job market had caused many undergraduates to pursue an
MBA course
Many undergraduates were residing in Bandung
Threats
Other national and international MBA Programs
Lack of support by ITB itself
INDONESIA BUSINESS CASE CENTER (IBCC)
004-02-07-07

Exhibit 4
The Proposed Learning Process

Learning Process Planned Action

Active-learning Instructors should display competencies in the ability to utilize
Model acquired knowledge, think creatively, and continue learning on their
own
Students responsibilities were to articulate and developing ideas in the
context of team and class discussions
In such environment, the instructors role was to facilitate and guide
discussion according to teaching objectives
Attention had to be directed to classroom climate, group process, and
the needs, interests, and students participation level
Curriculum Benchmarking with best-practice MBA Programs world-wide
Subjected to continuous improvement
Syllabus and Case Mixture of case-based teaching (80%) and lecture-based teaching
Method (20%)
Subject content relevant to current industry and business environment
Continually updated and improved by pertaining instructors
Attendance Implement restrictions for missing classes regardless of the reasons
Case method is only effective when followed through in sequence
The maximum absence allowed was 20% or students had to retake the
course
Examination Exams were divided into mid-term exam, final, and reevaluation
(when necessitated, max once per course)
Grading Policy Knowledge evaluation (case discussion, quizzes, mid-term and final
exams, and paper submission) contributed 40%-50% to the final grade
Skill evaluation (project/paper and practical application/simulation)
contributed 10%-20% to the final grade
Attitude evaluation (participation, team work, and leadership)
contributed to 50% to 30% to the final grade
Part-time Working hours were daily from 8.00 16.00
Lecturers Responsibilities included students case preparation mentoring,
continuously updating cases, materials, and syllabus.
Received evaluation and feedback.
Guest Speakers Delivery on specific area of interest
Could be the persons involved in the case being discussed
Internship: Group Opportunity for students to implement the classroom theory to real
Field Project business problems application through Group Field Project
Assignments were done in teams under the guidance of faculty
members
Students took the roles of consultants giving recommendations to
companies facing managerial problems
Academic Honesty Students were expected to follow rules and behave in ethical manner
Plagiarism was a serious offense
Students ought to work individually unless were instructed to work in
teams
Source: Jann Hidajat Delivery Method presentation, September 2005

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INDONESIA BUSINESS CASE CENTER (IBCC)
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Appendix 1
SBM ITB International Advisory Council

1. Clay Whybark, Distinguished Professor and Director of The Global Manufacturing

Center, University of North Dakota
2. Fred Luthans, Distinguished Professor of Management & Organizational Behavior,
University of Iowa
3. Hooi Den Huan, Professor of Marketing, Nanyang Technological University
4. Iwan Jaya Azis, Professor of Economics, Cornell University
5. John Slocum, Distinguished Professor, Southern Methodist University
6. Warren J. Keegan, Professor of Marketing and International Business
7. Larry Michaelsen, Professor of Management, Central Missouri State University, IBE
(Integrated Business Experience) Originator
8. Ram Narasimhan, Distinguished Professor, Michigan State University
9. Robert Sinclair, Distinguished Professor of Education, University of Massachusetts,
Amherst
10. Sang Lee, Distinguished Professor and Executive Director, the University of Nebraska
Productivity and Entrepreneurship
11. Kyoichi Kijima, Professor of Decision Systems Science, Tokyo Institute of Technology

SBM-ITB Board of Advisors

1. A.T. Suharya, Group Baramulti

2. Anh-Dung Do, PT Hadi Kusuma Raya
3. Arief T. Surowidjojo, Lubis, Gani, Surowidjojo Law Firm
4. Arifin Siregar, USINDO
5. Bakti S. Luddin, PT Menamas
6. Bambang Subianto, Ernst & Young
7. Budiardjo Sosrosukarto, PT Komatsu Indonesia
8. Djoenadi Joesoef, PT Konimex
9. Eddie Widiono, PT PLN (Persero)
10. Erry Riyana Hardjapamekas, KPK-RI
11. A. Fawzy Siddik, PT Ericcson Indonesia
12. Gunarni Soeworo, Bank Niaga
13. Hermawan Kartajaya, MarkPlus & Co
14. Heru Prasetyo, Accenture Indonesia
15. Hilmi Panigoro, PT Medco Energi
16. Jacob Oetama, Group KOMPAS
17. Joe Kamdani, PT Datascript
18. Karmaka Surjaudja, Bank NISP
19. Kemal Stamboel, IBM Business Consulting Services
20. Kristiono, PT Telkom Indonesia

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INDONESIA BUSINESS CASE CENTER (IBCC)
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21. Kuntoro Mangkusubroto, BRR Aceh Nias

22. Naning Adiwoso, PT Asri Desindo Intiwidya
23. Noke Kiroyan, Newmont Indonesia
24. Pia Alisjahbana, PT Daya Favorit Press
25. Poernomo Prawiro, PT Blue Bird
26. Renee Zecha, Finansa Asset Management
27. Rozik B. Soetjipto, Puri Consulting
28. S.D. Darmono, PT Jababeka
29. Sanyoto Sastrowardoyo, Mercantile Athletic Club
30. Shanti L. Poesposoetjipto, PT Praweda Ciptakarsa Informatika
31. Soedarpo Sastrosatomo, PT Samudra Indonesia
32. Surna T. Djajadiningrat, SBM-ITB

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