Graduate management program : final report

The report covers the period through 6/88. UOH made significant accomplishments within the first 15 months. The school"s physical facilities, including offices, a classroom, library, and computer center, were completed on schedule, and a class of 30 students began preparatory sessions in 12/87 and formal sessions in 1/88. Concomitantly, a strong faculty was hired and program established to train Ecuadorean faculty through doctoral programs in U.S. universities. Despite these accomplishments, however, A.I.D. terminated the project abruptly in 6/88, allowing only the completion of educational activities through 5/89. While no reasons were given for the termination, they may relate to the strained relations between UOH and the local counterpart, Fundacion Privada Ecuatoriana. The two entities were in conflict from the very start, primarily due to disagreement over lines of authority. A principal source of difficulty was a clause in A.I.D."s contract with the Fundacion stating that the latter was the recipient of the funds allotted for the project. This led to micromanagement by the Fundacion, which claimed control over project finances and the hiring of administrative and academic personnel, decisions which UOH felt it should make, given its responsibility under the project to establish a university according to U.S. standards. In 3/88, the Fundacion "fired" the Chief of Party, and the administrative, programs, and maintenance directors. From that point on, the already strained relations became cool and distrustful. In terms of student outputs, the project was successful. In 3/89, 24 of the original 30 students were awarded the equivalent of U.S. Master"s degrees. Graduates were well received in the business community and hired by the top Ecuadorean business firms. School facilities have been transferred to the Central American Institute for Business Administration (INCAE) in Costa Rica. The major lesson learned is that the pressures to get a project underway need to be resisted until clear operating agreements and legal bases are established.