In this discussion (this is part 3, parts 1 and 2 can be found by clicking on the numbers), we will be discussing how universities and companies differ.  Especially how small (albeit large to some of you) companies differ, as well.

Helen Dragas is the chief executive of a smallish home (and condominium) building company.  The closely held company has been around for 40 years or so, having been started by her dad.  So, it won’t surprise you to know that her definition of management involves doing things her way.

As Rector (akin the Chair of the Board) of UVa, she wanted things to change her way.  And, in a small company, that can happen (as I have written often).  In a larger company, change is more incremental- which can be a blessing and a curse.   In a university, one like UVa, steeped in tradition (much of it now puffery, since it is no longer among the top elite institutions across the USA), that change will occur even more slowly.  (Note please that Dr. John Casteen is rightly credited with bringing positive change to UVa- but over his TWENTY year tenure- not overnight).

Dragas wasn’t happy with Sullivan.  Exactly why- we still DON’T know, although hints of “moving slow” and “not embracing on-line learning” are bantered.  (Talk about transparency?)   It’s also possible that there is still resentment that Sullivan bested the Lieutenant Governor (Cuccinelli) in his ill-fated crusade to torment Michael Mann (of global warming fame), demanding countless documents and records from the University.  But, it’s purported that the primary reason was because Sullivan wasn’t changing UVa quickly enough.  After all, Teresa Sullivan had been president for 2 years and UVa was still UVa….

Dragas went about polling (maybe, maybe not) the other Board of Visitors.  Inquiring as to their predilections about the tenure of Sullivan.  It’s my supposition that this sort of polling was similar to that effected by many hacks, the ones who torment us with phone calls during dinner.  (“Do you think there should be a baby killing clinic in the neighborhood or do you believe in a women’s right to choose?”  “Do you think all criminals should be incarcerated for life after committing 3 crimes or do you want murderers loose on the streets?”  You know, the real choices…)

Supposedly, Dragas polled the other 15 members, who given Dragas’ queries, agreed that Sullivan may not have been the best choice for UVa.  And, instead of bringing this subject up for a vote at the next Board of Visitors meeting- or even holding an “emergency meeting”, Dragas held a meeting with only two of her cronies on the board and voted Sullivan out.  Yep, three votes.  Holding for the Board of 16 members.  No hanging chads, here, holding up the vote.

But, there was a little problem.  UVa, that “hotbed” of radicalism (want to buy a bridge in Arizona, do you?) stomped their feet and said NO!  The faculty.  The students.  The alumni.  Even, in his own way, Dr. John Casteen.  Which made this a national issue- fast.  Not exactly the publicity desired by Dragas, UVa, or even the Governor of Virginia (who has made his own sort of publicity over a woman’s right to choose).

So, we see here yet another learning opportunity.  As we grow our companies- or as we move on up to bigger (and, hopefully, better) corporations, we need to change how we manage and lead.  It’s very different dealing with 3 folks in a start-up than it is with 250,  that now has a  middle and upper management.   What worked before may work now- but not to everyone’s benefit.

Smaller entities can and should be aggressive.  They need visionary testing and experimentation.   Larger entities must employ incrementalism, with all deliberate speed.  Oh, they can- and must- use their smaller portions (divisions, subsidiaries, teams, skunk works) to be aggressive, employ visionary themes, experiment.  But, not with the whole corpus.

It’s the job of the CEO to insure that company succeeds (which means makes a profit) AND satisfies its stakeholders.  Obviously, a lesson that Dragas has just learned the hard way.  Yet, it does seem that neither Dragas nor our current crop of Big Company CEOs have discerned that there is another critical function for an organizational executive- accountability.  (Making your underlings accountable- which means being the fall guy- is NOT the same thing.)

By the way- since this article was written (I wrote this miniseries when it was happening), it has been revealed that UVA has, indeed, signed onto distance learning.  Using Coursera, a private firm started by ex-Stanford professors.  (MIT and Harvard are using the competing platform- edX.)  Now, the question is – will anyone (other than Coursera or edX) make money from such an offering?

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