GWU School of Business Dean Fired over Alleged Overspend: MBA News

Doug Guthrie has been relieved of his duties as dean of George Washington University School of Business amidst claims that he overspent by as much as US$13M on a series of new online and executive education programs, thereby exceeding his budget by almost 25%.  

Guthrie, who has led GWU's School of Business through an ambitious period of strategic growth in China over the last three years, has also lost his position as vice-president of its operations there. But, he will still have a role at GWU, staying on as a tenured professor of international business and management.

The overspend claims, which stem from a report in GWU student newspaper, The GW Hatchet, have been dismissed by Guthrie as ‘inaccurate’. The school’s Provost, Steven Lerman, would only go as far as to cite ‘profound disagreements’ as the chief cause for the dismissal, although he did concede that GWU would have to revise next year’s budget as a result. 

Cost of new online and ‘celebrity’ EMBA programs thought to be behind decision to remove Doug Guthrie

It is thought that the costly introduction of four new online graduate programs is the chief cause of Guthrie’s alleged overspend. One of which is the Digital Community Online MBA at GWU’s School of Business.

The GW Hatchet also pointed to an executive ‘celebrity’ MBA, known as the STAR (Special Talent, Access and Responsibility) EMBA program. The two-year program, designed for athletes and celebrities, generated a lot of publicity for GWU, but is thought to have come at a hefty price.

The US business school now has concerns that its lack of a permanent dean could impact upon an accreditation review, scheduled for later this fall. However, it does hope to appoint an interim dean as soon as possible.

In a statement to the Financial Times, Guthrie expressed his surprise at the abruptness of GWU’s decision, arguing that his investments would benefit the business school in the long-term. Earlier this month, he had contributed an article in the same newspaper in which he spoke of business schools’ need to implement new technology and broaden the courses they offer students.

Doug Guthrie, a renowned expert on China, had posted a ‘Dean’s Blog’ entry for GWU only a matter of days ago. The entry links to an article in which he discusses China’s transition to a consumer-based economy. Before his appointment at GWU, he taught at NYU Stern School of Business for five years, during which time he also held visiting positions at Harvard Business School and INSEAD.