Jeff Immelt Re-Imagining Business

Bi EdMay/june 2006 GE’s z Jeff Immelt Re-Imagining Business

How B-Schools Are Teaching for Peace

Measuring Your School’s Global Footprint BizEd

42 Cont May/june 2006 e Vntsolume V, issue 4

Departments FEATURES 24

6 From the Editors 18 Idea Man 36 The Four Stages of 8 Letters GE’s Jeffrey Immelt cultivates a Management Education culture where imagination and Business students need different 10 Headlines innovation flourish. kinds of education depending on 48 Technology where they are in their careers. 52 Research 24 The Dimensions of Peace Ashridge’s Kai Peters defines the Around the world, business schools existing markets. 56 Your Turn are launching initiatives to promote 58 Bookshelf peace through commerce. 42 Dean and CEO 60 Calendar Today’s business schools are run 32 The Global Footprint like corporations, which means 62 Classifieds Six components of a program that deans have become the top 64 Spotlight determine its global footprint executive officers. —and how prepared its graduates Cover photo: Patrick Harbron will be for the global economy.

BizEd May/june 2006 1 From the Editors

Work and Peace I live in a quiet suburb where people walk their dogs, decorate homes for the holidays, and post signs for political candidates. When the war in Iraq started, several homeowners posted anti-war signs; others put up signs supporting the troops. Within a few days, all the anti-war signs had been snatched out of people’s yards. New signs went up; new signs disappeared. Clearly, passion was running high in favor of the war—or in favor of sons and daughters at risk in Iraq. At the same time, a nearby church used a chain link fence and red plastic cups to spell out a simple message: Pr a y f o r Pe a c e . That sign, I noticed, never got torn down. It seemed that, no matter how people felt about war, they could unite in hoping for peace. But even once we agree to seek peace, we don’t always agree on how to achieve it. I recently heard an ad for a symposium studying “peace through science.” The thought was that science can help eradicate illness, poverty, and the technological divide. I suspect that’s true, though I also suspect science will need a helping hand. Perhaps that helping hand will be extended by management educators. While the primary goal of business schools is to prepare

Peter Samuels/Getty Images students to be management leaders, a growing number of b-schools are considering how business skills can be used to address those same ills of disease, poverty and inequity. Many of these schools are participating in AACSB’s Peace Through Commerce initiative. They’re also partnering with corporations, communities, and other universities on projects aimed at bringing peace to the world. It’s a complex goal, because peace can be defined at several levels, says Bijan Fazlollahi, a professor at Georgia State University in Atlanta. “Peace” can mean the absence of war between nations, friendly relations between individuals, or the prosperity of communities, he notes. The common denominator most often is commerce. Certainly at the highest level—peace between nations—business plays a key role. “In order to have trade, nations have to cooperate,” Fazlollahi says. But it’s also critical at more personal levels—for instance, when an understanding of business allows women to hold jobs and attain gender equity. “Because these women are empowered, they do not have to take abuse from their husbands,” he says. “If people are econom- ically dependent at the individual level, it is not really peace; it is exploitation.” Fazlollahi has promoted peace at the regional level by helping bring management education to former Russian provinces. In the article “The Dimensions of Peace,” other professors and deans describe how they have funded charities, worked in war-torn communities, and provided IT support to small enterprises as they attempt to improve the world. “Pray for peace” might not be the answer, after all. “Work for peace” doesn’t have quite the same alliteration—but in the end, the effect could be even more powerful. ■z Bill Bas c om

6 BizEd May/june 2006 Letters

What Doctoral than 50 applications per faculty that globalization is some kind of Shortage? opening. It is not clear how many inevitable law on a par with gravity of these applicants are experienced suggests a naiveté about the nature In the article “Perfect Storm,” faculty versus recent doctoral gradu- of uncertainty in a complex world. which appeared in the Janu- ates, but supply appears healthy in My point is not that outsourc- ary/February issue of BizEd, D. this field. ing, technology innovation, and Michael Fields indicates that there William P. Millhiser globalization are bad, but rather that is a shortage of management doc- Visiting Assistant Professor of promoting them so uncritically actu- toral students. While this is true Operations ally weakens rather than strengthens in several disciplines, there appears Weatherhead School of Management the case for these practices. I would to be less shortage in the areas of Case Western Reserve University hope that any of our MBA students operations management and opera- Cleveland, Ohio who have had a good international tions research/management science, business course could poke holes partially due to the fact that these Not So Common Good in many of Lataif’s points. Further- disciplines are supplied by business, industrial engineering, and applied I was pleased to see the article mathematics doctoral programs. by Louis E. Lataif, “B-Schools During the 2005 job market, I and the Common Good,” in the learned through correspondence March/April issue of BizEd. I with hiring committees that compe- was, however, disappointed by the tition for faculty openings in these lack of a critically reflective per- disciplines is keen. Business schools spective in the article by Lataif. at the University of Miami and Iowa For example, Lataif appears to State University each received more argue that outsourcing inevitably creates strong economies in the countries that are the source of lower cost labor. Such more, such an uncritical approach an argument ignores the erratic seems to imply that these practices impact of outsourcing in many will somehow automatically produce other countries, particularly a better world. those in Central America. At one I would argue that business lead- point Lataif does use the phrase ers must be clear about the need to “responsible outsourcing,” but be intentional in their commitment he never clarifies what makes to “serve the common good,” rather outsourcing either responsible than assuming that outsourcing, or irresponsible. technology innovation, and global- than 120 applications for assistant In a similar manner he highlights ization are a panacea for the world’s professorships in these fields; at the the success of Wal-Mart in driving economic ills if we are just patient University of Utah and the Univer- down prices and saving consumers and wait for good things to happen. sity of North Carolina in Chapel money. Wal-Mart is also routinely George Lehman Hill, applications for openings in the object of great scrutiny for its Chair, Department of Economics, such fields were 170 or more. And labor practices and the manner Business Administration and at the Wharton School, the depart- in which it structures its benefits Accounting ment of operations and information programs to keep many full-time Director, Bluffton Graduate management received more than or near full-time employees from Programs in Business 250 applications. having health insurance. Acting as Howard Raid Professor of Business Operations departments in the if Wal-Mart is an unmixed blessing Bluffton University smallest schools are receiving more is hardly a credible stance. Arguing Bluffton, Ohio

8 BizEd may/june 2006 Headlines

Recruiting the Next Ph.D.s dents, either —they need the same number of credits as their peers, Worried about the doctoral shortage? they pay the same tuition, and they Consider a low-cost but highly need not take the GMAT to enroll effective program that encourages in the prep course. students to think about an academic Since the program was instituted, career while they’re still undergradu- 36 BYU students have graduated or ates. That’s the goal of the Ph.D. are about to graduate from Ph.D. Prep Program at Brigham Young programs. In the past two years, the University’s Marriott School of school has invited them all back to Management in Provo, Utah. participate in an accounting research Officially launched in 2002, cent,” says symposium, which has created a the program has been grafted Stocks. great deal of synergy between fac- onto the integrated BS-MAcc pro- “We have that, ulty and past and present students. gram in BYU’s School of Accoun- but the weeding out hap- “We have a vested self-interest in tancy. Juniors in the program choose pens before they go.” getting our faculty to write with whether to pursue a bachelor’s or a Not only is the these students,” says Stocks. “If we master’s degree—and if they choose program successful, can get them back to campus, so the master’s, they can further enroll it costs very little to much the better.” in the Ph.D. Prep program. During run. Because the The prep program has been their senior and graduate years, they math, statistics, adopted by other departments at fill their electives with classes such and economics BYU, and Stocks believes it could be as calculus, statistical methods, and courses already duplicated easily by any school that econometrics; they also take a class existed in other has a master’s program. The keys are on accounting research. departments, the to start early and take every oppor- Meanwhile, they are given fre- only new class the tunity to discuss academic careers. quent insight into the job of an School of Accountancy needed to “Talk about the lifestyle of a pro- academician. “We invite them to design was the one on academic fessor, what you like about it, what faculty research seminars, and we research. There is no cost to stu- you don’t like,” says Stocks. “Discuss bring them in as TAs,” says Kevin D. Stocks, director and W. Steve Albrecht Professor at the School of Doctoral Prize Accountancy. “Every time we talk about careers, we discuss the aca- With the goal of encouraging excellence in management research, demic option.” the Central and Eastern European Management Development Since the program started, about Association (CEEMAN) and Emerald Group Publishing Limited are 20 students have entered every sponsoring a new prize in doctoral research. The winning entry year. An average of eight or nine will receive a cash prize worth $1,500 (about $1,780 in U.S. dol- have gone on to enroll at Ph.D. lars), a certificate, and the prospect of publication in an Emerald programs in other schools, since journal. In addition, a number of “highly commended” awards will BYU’s accounting school does not have its own Ph.D. program. The be bestowed. more compelling statistic is that, To be eligible, authors must address accelerating and improving management development in once enrolled in a doctoral pro- Central and Eastern Europe and be from a CEEMAN member institution. They also must have satis- gram, none of the students have fied doctoral award requirements between June 1, 2004, and June 1, 2006. All papers must be dropped out. submitted by July 1. For more information, contact Jim Bowden at [email protected] “Typical Ph.D. programs have or visit www.emeraldinsight.com/awards and www.ceeman.org. an attrition rate of about 50 per-

10 BizEd May/june 2006 “How do you make good, solid ethical decisions? I think they know now that it’s not as easy as black and white, right or wrong.” —Art Sherwood, Indiana State University

what’s happening in the profession would enrich the learning experiences ing lines. They will deliver written now and what the opportunities for students across campus,” says proposals and oral presentations to are.” Make sure students are exposed Ashley Cameron, a Networks Scholar Target representatives, who will do to the research process and develop and co-chair of conference planning. the judging for the awards. their quantitative abilities, he says. “Whether students know it yet or “Team projects like these give our Most schools fail to recruit stu- not, they are becoming more savvy at students a good dose of hands-on dents into Ph.D. programs, Stocks ethics and the topic of ethical dilemmas,” experience blended with academic notes—they simply wait until stu- says Art Sherwood, assistant professor learning,” said Nathan D. Kling, dents apply for admission. “We’ve of management and a member of the director of the School of Manage- basically said, we need to recruit the College of Business’s leadership devel- ment and Marketing. way we recruit in other areas.” opment team. “How do you make good, solid ethical decisions? I think The Charitable Entrepreneur Students and Ethics they know now that it’s not as easy as black and white, right or wrong.” A yearlong class on entrepreneurship at Anyone who worries about whether Babson College in Wellesley, Mas- today’s business students are con- sachusetts, teaches first-year under- cerned about ethics in the workplace graduates not only the basics of should be reassured by the conference launching a business, but also the on “Ethics and Corporate Responsi- rewards of using business proceeds bility” held in March at Indiana State to support charities. University in Terre Haute. The free The Foundation Management conference was organized by three Experience (FME) immerses students student scholarship groups: Presi- in the world of business as they learn dent’s Scholars, Networks Scholars, economic theory, probability theory, and Gongaware Scholars. statistical analysis, and business law— More than 450 people signed while working with classmates to up in advance to attend sessions invent, launch, manage, and liquidate on such hot topics as “Ethics of a business. Each team of students Genetic Testing,” “Sarbanes Oxley,” receives $3,000 in startup money; all “The Employment of Illegal Immi- Target Marketing grants,” “Martha Stewart: What Went Wrong?,” “Personal Piracy,” Money, not top grades, will be the reward Baltic Connection and “Truth in Advertising.” Keynote for some students enrolled in the speaker Christopher Bauer, of Bauer advertising and promotion course Executives and managers who are planning to Coaching and Bauer Ethics Semi- at the University of Northern do business in the Baltic region have a new nars, discussed how to make ethically Colorado’s Monfort College of resource in the Baltic Journal of Management, informed decisions while maximizing Business in Greeley. Target Cor- which covers emerging management practices the bottom line. poration has committed $5,000 and research in that region. The journal is cur- Students became interested in eth- to support the course in which rently soliciting papers for a special issue that ics as a conference topic after seeing student teams will design advertis- will be distributed at its fourth annual confer- results of a 2005 survey of employers ing and promotional campaigns for ence, “Creating Well-Being: Entrepreneurs in in the banking and securities indus- the retail giant. The top two teams the Driver’s Seat,” which will be held June 5 try, which indicated that new college will split more than $4,500 in hires should possess an understand- scholarship money; the rest will go through 7 in Helsinki. The deadline for submit- ing of ethics and other soft skills. “In toward course development. ting papers is June 5. For more information the College of Business our focus Working in small teams, students on the journal, see emeraldinsight.com/info/ isn’t necessarily on ethics in all of our will design promotional strategies for journals/bjm/bjm.jsp. For more information classes, so we hoped this conference some of Target’s brand-name cloth- on the conference, go to www.BMDA.net.

BizEd May/june 2006 11 Headlines “We want to catch the next Bill Gates-type leaders who are impatient to make an impact.” —Mark Zupan, University of Rochester

profits are donated to charities that new Early Leaders Program at the Simon has launched an undergradu- students choose. University of Rochester’s William E. ate Summer Business Institute to Last year, the 14 student business- Simon Graduate School of Business attract and polish potential students es developed in the FME donated a Administration in New York, where who have had no formal business record-setting $62,720 to their col- students with zero to five years’ of training. The Simon School also lective charities. Among the business- work experience are being recruited. plans to introduce a course on es launched were My Skinz, which Dean Mark Zupan notes that, as leadership as part of its orientation provides customizable laptop skins business schools have shifted their program to better prepare younger with personalized outer images; The focus to older students, those full- students for careers in business. Shake Up, a vibrating pillow alarm time students have had a greater clock; Babson in a Box, a game that struggle with work-life balance issues. Recognized Effort mimics the experience of an average Diversity has also suffered, as women Babson Student; and Bab-Ubble, and minorities face high opportunity All universities have processes in place to chewing gum with packaging that costs when they leave the workplace honor outstanding faculty and stu- allows for customizable business to enroll in grad school. One goal of dents, but the individuals who work messages. Some of the charities that the Early Leaders program is to allow behind the scenes are rarely recog- benefited were Friends of the Home- the Simon School to recruit more nized for the work they do to keep less, The American Cancer Society, women and minorities; and to this schools running. That has changed Boys and Girls Clubs of Boston, Spe- end, the school is seeking to build at Baruch College’s Zicklin School cial Olympics, Junior Achievement, partnerships with all-women’s col- of Business in New York, where and local charities. leges and historically black colleges dean John Elliott has established a FME has been recognized by the and universities. Service Excellence Initiative to rec- United States Association for Small One advantage that younger ognize the contributions of adminis- Business and Entrepreneurship as the MBAs possess is a familiarity with trative assistants. number one “Innovative Entrepre- cutting-edge technology, says Zupan, Students, staff, and faculty partici- neurship Education Course” in and this is likely to enhance pate in an anonymous electronic sur- the country. USASBE’s Excel- their value in the marketplace. lence in Education Awards are Younger grads also tend sponsored by Students in Free to be highly motivated Harvard Raises Enterprise (SIFE). and eager to launch their $600 Million careers. “We want to catch Grooming the the next Bill Gates-type Harvard Business School in Boston, Massa Youngest MBAs leaders who are impatient to chusetts, has completed a $600 million capital make an impact,” he says. campaign, surpassing the $500 million goal set While traditional MBA programs To screen potential candi- three years ago. “The success of this campaign focus on older students dates for the right attitude reflects the extraordinary accomplishments of with a few years of work and ability level, the Simon our alumni, who hold positions of leadership in experience, some schools School first requires stu- a wide range of organizations, and the pride are beginning to look dents to go through an they feel for the school,” says dean Jay Light. at students fresh out of alumni interview. Simon The campaign, initiated by former dean undergraduate education has also instituted an online Kim B. Clark, focused on supporting five long- as a way to boost gradu- business simulation scholar- ate enrollment and make ship competition to gauge term priorities for the school, including boost- sure talented potential business aptitude. The top can- ing financial aid for students, developing top business leaders don’t didates will come to campus faculty, extending the school’s global outreach, get turned onto other to explain their strategies, and devising innovative uses of technology in edu- career paths. That’s the the winner will receive a full- cation, and renewing the HBS campus. philosophy behind the ride scholarship. In addition,

12 BizEd May/june 2006 COLLEGE OF BUSINESS creating vey to nominate top staff and supply details about occasions where they value provided outstanding service. This year, the third year of the program, “The analytical investment skills gained four administrative assistants were in the College of Business gave me the honored at a special ceremony. Each flexibility to transition from investment received a check for $1,000 and a management to a unique sector of international development. Microfinance Lucite desk plaque. supports economic growth in developing School administrators believe that countries by providing small loans to honoring the staff has helped foster poor entrepreneurs, with nearly 100 a “culture of service” at the Zicklin million borrowers across the globe. I School. Elliott notes, “These are the am proud to be using my financial individuals on the front lines who education to make a difference in an can make a big impact on the quality amazing industry.” of service experienced by faculty and Brooke Randall (’02 Finance) Analyst, MFI Services, Unitus Global students alike.” Microfinance Accelerator

CB VISION: Transforming the lives of students while positively impacting the business and academic communities of Washington state, the region, and the world.

• The College of Business is ranked among the top 10 business programs at public universities in the western United States (US News and World Report 2005). B-School and Cars • The College of Business is one of 10 percent of business schools What do members of Generation Y look in the country to achieve AACSB for when they’re buying cars? accreditation at the bachelor, Honda decided to get student input master, and doctorate levels. on that question by designing the • US News and World Report ranked Honda Research Program compe- the International Business major tition, which handed out awards among the top 25 specialty last February. Winners in the grad business programs (2003–2005). school category were team members • Entrepreneur magazine rated the from the San Diego State University Entrepreneurship major as the top College of Business Administration entrepreneurship emphasis in California. Among undergradu- program in Washington (2005). ate schools, California Polytechnic State University in San Luis Obispo fielded the winning team. Developing Leaders. The competition is part of a Honda Driving Innovation. Research Program geared toward researching Gen Y awareness and car buying motivations. Marketing educa- [email protected] tion consulting company EdVenture 509-335-8150 Partners partnered with Honda to

BizEd May/june 2006 13

Untitled-1 1 2/9/06 3:53:09 PM Headlines

sponsor the competition. Students Shawn Hauserman, who co-teaches collected data by conducting research, the course with Ellen Foxman. Short Takes running focus groups, and searching “Another hurricane will happen,” out blog commentaries. According to says Hauserman. “Our hope is to New Appointments American Honda Motor Co. Senior provide an infrastructure so that, to n Thomas Gilligan has been appointed Manager of National Advertising Tom the best of our abilities, the clinic can interim dean of the University of Peyton, “The students brought insights stay up and running. We also want Southern California’s Marshall that were fresh and relevant—some- to expand the role of the clinic in the School of Business in Los Angeles. thing not always found in the reams of community as a healthcare resource He succeeds Yash Gupta, who has data we often see.” and education facility.” resigned as dean but continues to Student Manny Carneiro says the hold his tenured position as profes- course has been an incredible experi- sor of information and operations ence. “This is an opportunity for us as management. Gilligan is a professor business students to apply our skills to of finance and business economics real-life situations. There is a sense of who most recently served as the vice satisfaction when you have a tangible dean of undergraduate education. product to show for your efforts.” The school will conduct a national search to find its next dean. Scholarship Competition n Albert “Pete” Kyle has been named Most student business competitions offer the Charles E. Smith Chair in seed money or valuable consult- Finance at the University Learning to Rebuild ing advice as prizes, but at North of Maryland’s Robert H. Carolina State University’s College Smith School of Business An interdisciplinary class at Bentley College of Management, a recent competi- in College Park, Maryland. in Waltham, Massachusetts, helps tion netted the winner a full-tuition students understand how to rebuild MBA scholarship. The contenders n James B. Thomas has been named communities devastated by disaster. had applied to the school’s GiftEd the dean of the Smeal College This spring’s “Rebuilding Business MBA scholarship program and were of Business at Pennsylvania State Processes” will culminate in students selected for the competition based University in University Park. He creating a business plan that will on academic merit, leadership poten- is currently dean of the College of revitalize an Alabama health clinic tial, and relevant work experience. Information Sciences and Technol- destroyed by Hurricane Katrina. The five competitors took place ogy at Penn State. Thomas assumes The class will cover expository in an “Apprentice”-style competi- his new duties on July 1, succeed- writing, so students can learn grant tion sponsored by communications ing Judy Olian, who has become writing; database management, so company Alltel. During a week’s dean of UCLA’s Anderson School they can organize medical records time, they developed business plans of Management. and billing for the clinic; Web design to market Alltel’s Touch2Talk walkie- and cyber law, which will cover trade- talkie service, which they presented in n Steven Salbu has been named the marks and copyrights for a new Web the boardroom. Company executives Stephen P. Zelnak Dean of the Col- site for the clinic; disaster relief plan- chose the winner, but everyone ben- lege of Management at the Georgia ning; and political science. Students efited. Alltel gained fresh perspectives Institute of Technology in Atlanta, will develop strategic one-, three-, on a marketing issue; the top can- effective July 1. Salbu is currently and five-year business plans for the didate received a scholarship worth associate dean for graduate pro- clinic and ultimately present them to around $25,000. Runners-up also grams, Bobbie and Coulter R. Sub- the clinic’s director. received scholarships that will cover lett Centennial Endowed Professor, Part of the course goal is to help half their tuition for the 2006–2007 and university distinguished teaching students plan for future disasters, says academic year. professor at the McCombs School of

14 BizEd May/june 2006

DREXEL UNIVERSITY’S LEBOW COLLEGE OF BUSINESS ANNOUNCES

FALL 2006

Business at the University of Texas. Salbu replaces Terry Blum, dean since 1999. Blum will remain on the NEW UNDERGRADUATE CURRICULUM faculty to direct the new interdisciplinary Institute for Leadership and CHOICES: Entrepreneurship. n Patricia G. Greene has been named the new provost at Babson College in Wellesley, Massachusetts. Greene, who currently serves as dean of the undergraduate school, will begin her new role July 1. Also at Babson, Candida Brush has been named women’s entrepreneurship researcher. She will lead the development of Babson’s new Ph.D. program in Entrepreneurship and hold the new President’s Chair in Entrepreneur- ship. In addition, Edward P. Marram has been named director of the school’s Arthur M. Blank Center for Entrepreneurship. CHOICES LeBow College’s most comprehensive undergraduate curriculum overhaul in n J. Dennis Coates has been named 10 years — is designed to promote lifelong interdisciplinary learning and dean at the College of Business at creative problem solving in a changing technological and global context. Florida Atlantic University in Boca CHOICES empowers students with a continued focus on co-op, more choices Raton. Coates joined the business to explore career interests, and connectivity to promote lifelong learning. faculty 16 years ago and has served “We are committed to the education of successful, responsible leaders who can as interim dean for more than a year. meet today’s challenges and adapt to tomorrow’s”—Dean George P. Tsetsekos

New Programs NEW CURRICULUM HIGHLIGHTS n North Carolina State University in Raleigh • Provides an excellent broad-based foundation while allowing for dual has partnered with IBM to launch a concentrations and minors curriculum initiative in Services Sci- • Two new concentrations: a stand-alone International Business program ences, Management, and Engineer- and Legal Studies ing (SSME). The • 12 new courses, including forensic accounting, corporate governance, master’s level cur- intellectual property and cyber law, and Six-Sigma quality implementation riculum is designed • Electronic portfolios enhance connectivity among courses and continuity to prepare graduate of learning students for careers in the multidisci- • Continuous assessment of knowledge ensures relevancy, enhancing learning plinary field of services management, which focuses on helping companies COLLEGE OF BUSINESS build more efficient IT systems, streamline business processes, and ® implement technology. N.C. State’s LEARN HERE, LEAD ANYWHERE LeBow new program combines input from

BizEd May/june 2006 15 Headlines

Short Takes Professor of Law and Economics, provide input into others to assure with primary appointments in law, that the program covers the latest the fields of computer science, com- business, and economics. Hersch will developments in the field. puter engineering, business strategy, have a tenured appointment at the and management sciences. law school and secondary appoint- n Western Carolina University in ments at the Owen Graduate School Cullowhee has approved a new n The University of Arizona’s Eller of Management and in the econom- master’s degree program that blends College of Management in Tucson ics department in the College of fundamental business skills with a has launched a dual-degree master’s Arts and Science. traditional science curriculum and program that integrates technology, is designed to produce graduates management, and entrepreneurship n Two new doctoral programs will who can work in technology-related in a single course of study. Students be launched this fall at the Belk businesses or launch in the program will earn an MBA College of Business at the University their own entrepreneurial as well as a second master’s degree of North Carolina in Charlotte. One is ventures. The pro- from the schools of engineering, a Ph.D. in business administration gram is grounded optics, agriculture, or science. offered by Belk; the other is a Ph.D. in specific scientific They will also earn a certificate in in organizational science offered disciplines—biol- entrepreneurship. jointly by Belk and the College of ogy, biotechnology, Arts and Sciences. The doctoral pro- chemistry, and environmental sci- n Case Western Reserve University’s gram in business administration will ences—but adds business skills to Weatherhead School of Manage- initially offer a curriculum in finance; the curriculum. ment in Cleveland has joined with additional specializations will be The Cleveland Clinic to train added as the program grows. The n This fall, Longwood University will professionals interested in man- new Ph.D. in the interdisciplinary launch an MBA with a concentra- aging health care field of organizational science will tion in retail management. The institutions. focus on the effectiveness, health, program will be offered on the The Health and well-being of organizations and Farmville, Virginia, campus as well Management individuals. Coursework will cover as in Richmond. The program will Scholars Pro- psychology, sociology, communica- cover topics such as merchandising gram, which tions studies, management, and and buying, corporate manage- launches in the fall, will enroll up to organization development. ment, inventory control, logistics, four Health Management Scholars distribution, finance, accounting, in the Weatherhead School’s full- n Five of the top auditing firms— marketing, sales, public relations, time MBA program. Deloitte, Ernst & Young, KPMG information systems, e-commerce, Audit, Mazars, and Pricewater- and human resources. Partnering n W. Kip Viscusi and Joni Hersch, houseCoopers—have joined with with the school to help deliver the law and economics scholars at Har- Audencia Nantes School of Management program will be retailers such as vard Law School, will join the Van- in France to create a specific audit Dillard’s, Enterprise, JC Penney, derbilt University faculty in Nashville, study track for the school’s master in Nordstrom, Sprint, SunTrust, Tar- Tennessee, as the law school launch- management program. Students in get, Walgreen’s, and Wal-Mart. es a Ph.D. in law and economics. the program will complete Vanderbilt’s goal is to create a com- an internship between n Innovation and flexibility are the bined degree that will train scholars October and February, hallmarks of a new master of science for legal practice, policy making, the busiest time in the in marketing degree being offered at and public interest work, as well audit year. The audi- the University of Tampa’s John H. Sykes as academic positions. Viscusi will tors will teach some College of Business in Florida. Pro- become University Distinguished of the classes and gram director Erika Matulich is both

16 BizEd May/june 2006 an associate professor of marketing professorships, faculty fellowships, allow up to 40 University of Hong and a professional certified marketer; executive education, graduate stu- Kong MBA students per year to other faculty in the program have dent scholarships, and the creation study at Columbia for a full semes- both Ph.D.s and professional expe- of a global scholars-in-residence ter. The program will begin with the rience in areas such as sales, inter- program. The Lucases founded the 2007–2008 academic year. national marketing, retailing, and Lucas Dealership Group, one of the technology marketing. first multiple franchise automobile n Purdue University’s Krannert companies in the U.S. School of Management in West Honors and Awards Lafayette, Indiana, and its Center n Hsinchun Chen has been named a n The School of Business Adminis- for International Business Educa- Fellow of the Institute of Electri- tration at the University of Wisconsin- tion and Research (CIBER) have cal and Electronics Engineers Inc. Milwaukee has received a $10 million entered into (IEEE). A management information contribution from Milwaukee busi- cooperative systems professor at the Eller Col- ness leader and philanthropist Shel- educational lege of Management at the Uni- don B. Lubar, chairman of Lubar and research versity of Arizona in Tucson, Chen & Company Inc. It is the largest programs with specializes in developing medical, single donation in the university’s three Chinese intelligence, and security informatics. history. The funds will be used to universities as part of the universi- fund new professorships, student ty’s Asian Initiative. Krannert will n The Henry W. Bloch School of scholarships, program innovations, cooperate with Zhejiang Univer- Business and Public Administration technology, and infrastructure. Plans sity in Hangzhou on a variety of at the University of Missouri in Kansas are under way to name the business programs, including education, City has received the silver award for school the Sheldon B. Lubar School research, and student exchanges. Excellence in Advertising from the of Business, while the school’s main In particular, the schools will focus Council for Advance- facility would be renamed the Shel- on supply-chain management and ment and Support don B. Lubar Business Building. international human resources of Education. The studies. The school also has signed award recognized the n The Richard T. Farmer School student-exchange agreements with Bloch School for its of Business at the Miami University in Tsinghua University and Beijing print ad series titled Oxford, Ohio, has received a $4 University, both in Beijing. “The Bloch School million gift from Thomas J. Petters, Knows: Innovation is CEO and chairman of Petters Group n The School of Management at the Essential,” which was Worldwide. The gift will create the University of Ottawa in Ontario recent- published in BizEd between March Jennifer Petters Chair in Asian Busi- ly signed an agreement to institute 2005 and March 2006. ness, named after the businessman’s exchange programs with Corvinus daughter. Petters Group World- University of Budapest, Hungary. Grants and Donations wide—a group of companies that n San José State University in Califor- includes Fingerhut Direct Marketing Other News nia has received the largest private and Polaroid—is based in Min- n Douglas T. Breeden, the dean of Duke individual gift in its history—a $10 netonka, Minnesota, and is working University’s Fuqua School of Busi- million donation from alumni Don- to develop a Living and Learning ness since 2001, will step down ald and Sally Lucas. The money will Center in Shanghai. effective June 30, 2007. He plans to go to support the graduate business resume teaching and research full- school, which will be renamed the Collaborations time while retaining his appointment Donald and Sally Lucas Graduate n Columbia Business School in New York as the William W. Priest Professor of School of Business in the College of and the University of Hong Kong have Finance at Fuqua, located in Dur- Business. The gift will fund endowed announced a partnership that will ham, North Carolina. ■z

BizEd May/june 2006 17 Idea Man ’s corporate slogan “Imagination at Work” isn’t just an advertising strategy. It’s the way the company, headquartered in Fairfield, Connecticut, and its outspoken CEO, Jeffrey Immelt, do business. And yet, even as GE works to build a culture of G innovation, E imagination, and eco-friendly business practices, many analysts wonder whether a company with a successful 120-year track record should so drastically depart from the strategies that have fed its current success—in particular, its pursuit of bottom-line productivity and slow, steady growth. For managers to Immelt, for one, believes that great new ideas are essential for the company’s continued success. “Our aspiration has never really been to be a big company. impress Jeff Immelt, What we’ve really been about is being a great company,” Immelt told students at Fairfield University’s Charles F. Dolan School of Business lecture series in GE’s forward-thinking December 2005. “We don’t allow ourselves to become too big to innovate.” In fact, in its March 28, 2005, article, “The Immelt Revolution,” BusinessWeek CEO, they can’t called Immelt’s new approach a “grand experiment.” GE‘s performance under Immelt’s new directives will be a test of whether innovation, creativity, and play it safe. They risk-taking in the market really pay off, in real-world dollars, for a company in today’s business environment. must have courage, Immelt came to GE in 1982 after earning a degree in applied mathematics from Dartmouth College and an MBA from Harvard Business School. He quickly take risks, and rose through GE’s ranks, working in the company’s appliance and plastics divisions before becoming president of its medical systems division. He became conceive the chair-elect in 1999, following in the footsteps of one of America’s most prominent CEOs, Jack Welch. He took over as GE’s CEO on September 9, 2001, two days great ideas that before the terrorist attacks in the U.S., which killed two employees and sent GE’s stock price plunging. Rarely has a new CEO faced such daunting challenges will shape the so early in his tenure, with so little time to adapt. However, Immelt has run the obstacle course with relative grace. In fact, in a 2005 survey conducted by New company’s future. York-based public relations firm Burson-Marsteller, Immelt was ranked among the top ten most admired CEOs in the world. If courage, risk-taking, and innovation are important to business, says by Tricia Bisoux Immelt, they are doubly important for business schools. Now more than ever, companies don’t want business schools merely to follow the trends. They want business schools to produce the business leaders and develop the best practices that will help them succeed in a slow-growth, high-tech, increasingly unpredictable world.

18 BizEd May/june 2006 photo by Patrick Harbron BizEd May/june 2006 19 If I were to point to one thing, it’s that students need to have courage. Business schools need to make sure that they’re developing courageous people, people who are willing to step out, take risks, and pursue new ideas.

Last November, you told a group of business students at team efforts. For instance, one group is working to lower Miami University at Ohio that they need to be prepared GE’s greenhouse gas emissions. Others are working on coal for a world governed by slower growth, more volatility, gasification—we’ve invested $900 million in making coal and more regulations. How should business school fac- produce energy in such a way that it has an environmental ulty and students prepare for such an economic climate? impact similar to natural gas. Coal gasification is more favor- I frequently worry about business schools being backward- able to the environment than the use of other fossil fuels, looking, not forward-looking. They need to prepare students and it can be done at a competitive cost. Those are examples who are forward-looking, technologically savvy, innovative, of ideas and investments that we think have big potential. externally focused, and adaptable. The best business courses will present students with a more global, fast-paced, volatile, The Six Sigma management development program and transparent business climate, where a company’s cus- has long been a mainstay of GE’s leadership develop- tomers, suppliers, and regulators have to know more about ment. However, with GE’s focus on innovation and how its business works. quick adaptation to a new marketplace, is Six Sigma still as relevant and applicable as it once was? Are business schools doing enough to instill in their We do as much lean manufacturing today—something graduates the ability to truly innovate, to the extent we’ve learned from Toyota—as Six Sigma. But we continue that a company like GE requires? If not, how do you to take Six Sigma to our customers and try to externalize it think they could improve? as an initiative. A tool like Six Sigma is very important to I really don’t quite know how to answer that! But if I were to big companies because it gives them a common language point to one thing, it’s that students need to have courage. to drive change. A common language gives us a way to Business schools need to make sure that they’re developing put everybody on the same page and give people the same courageous people, people who are willing to step out, take vocabulary. I wouldn’t advocate Six Sigma just for the pur- risks, and pursue new ideas. The heroes they study should be pose of Six Sigma; but when I visit clients, I always want to people like Steve Jobs, Bill Gates, people who haven’t played see if they have some language of change, some process that it safe—not just Wall Streeters. drives their behavior. Six Sigma continues to do that for us, so we will continue to evolve it. During your address to stockholders last December, you also emphasized that a pursuit of new technolo- You’ve been extremely vocal about the importance of gies and innovation would be vital to GE’s future. How developing alternative energy sources, now a central are you developing that kind of “forward-looking” focus for GE. In fact, I read in The Economist that GE workforce and mindset within GE? managers will now be judged not just by how well If you really want to lead innovation, you need to make they meet their financial objectives, but also by their sure that the necessary human and financial resources are efforts to change the planet for the better. Why did available and focused on areas that have meaning to custom- you find this to be important for GE’s strategy? ers. At GE, we’re working on projects called “imagination Our focus is not just on alternative energies, but on fuel breakthroughs,” whose main objectives are to be germane avoidance; energy efficiency; coal gasification; clean gas tech- to our customers and to develop revenue for the company. nologies; and solar, water, wind, and nuclear technologies. As the CEO, I must make sure these projects are funded, There is a confluence of events among $60-a-barrel oil, the filled with good people, and driven by all of the company’s need for more fuel security, and the shortage of water, which best practices. makes energy a place where GE should be positioned. We can use our technology to make money for our investors and In fact, you’ve charged GE leaders to have at least solve big problems at the same time. This is important to three “imagination breakthroughs” per year—ideas our strategy because we view it as a growth strategy. that can ultimately lead to at least $100 million in growth for the company. How well have your manag- Along these lines, GE recently announced its “Ecoimag- ers met that goal so far? ination” initiative, in which you’ve pledged to double We have set many internal goals, and our people have been GE’s research spending on clean energy to $1.5 bil- working very hard to meet those goals, primarily through lion in 2010, from $700 million in 2004. How do you

20 BizEd May/june 2006 plan to convince skeptics that such an active pursuit infrastructure to support that middle class—that’s not likely of clean energy technologies and green practices will to change any time soon. When you think about the Middle keep GE’s profits and growth on the rise? East and Africa, you have a tremendous transference of We’ve doubled our research, but we also work with our wealth into these regions from other parts of the world, and customers to drive growth. That growth justifies that invest- that’s also not likely to change any time soon. ment in R&D. If we didn’t think we could get the revenue The market drivers of both regions are different, but the growth, we wouldn’t do it. In many ways, it’s pro-investor. outcomes will be the same. In other words, as the Middle It positions us in a way that we think is going to help our East gets wealthier, they’ll invest in airplanes, in desalination, customers. in all the things we sell. As China and India build the infrastructure to drive their middle class, they’ll invest in You are currently pushing through many other initia- energy, healthcare, and industrial solutions—also things we tives and taking GE in new directions. How would sell. In fact, our revenue from outside the U.S. is growing you advise business students to lead people in a new faster than our U.S. revenue. direction and get them excited about a new idea, especially in a company as large as GE? With so many different countries crucial to GE’s future First, students should know that they shouldn’t have too growth, how important is it that your new hires have many new initiatives—they need to stay focused on just a study and work experience outside of their home few. Second, they need to do their homework; they need countries? to do the research to know what’s going to work in the Very important. Of the top 600 managers in the company, marketplace. Third, they need to make sure they have the about a third have a non-U.S passport. The other two-thirds financial wherewithal and ability to drive change. Fourth, are American, but at least half of them have lived outside the they must build on small successes. For instance, when we U.S. More than 70 percent of people in the company’s top launch something like Ecoimagination, our customers see positions have lived in countries that aren’t their own and the resources going into it and see the results. Success begets are very adept at running global businesses. In addition, I’d success. say that most of the high-potential people who come to the Finally, they need to communicate their new direction company will end up living outside the U.S. during their first frequently. We always give people updates on where we ten years with the company. For us, globalization is not a stand as we make changes. Success in achieving any big trend, it’s a fact. It’s just the way we run the company. change depends on knowledge, focus, resources, and communication. When people hear of our initial successes it As globalization exerts so strong a force on the mar- ultimately drives the change further. ket, it seems that businesses are looking more at how they can improve the economies in the develop- GE is also moving in new directions when it comes to ing world. AACSB International and many business globalization. You’ve noted that the Middle East and schools, in fact, have recently launched a “Peace Africa would be very important to the company, par- Through Commerce” initiative to promote business as ticularly areas like the United Arab Emirates, Qatar, a force to change society for the better. How do you Nigeria, Kenya, Saudi Arabia, Morocco, Kuwait, and think GE and business schools can work together to even Iraq. How do these areas compare in importance encourage this idea? to regions like China and India, which seem to be gar- What GE does, and what business schools can do, is to find nering the most attention right now? and promote practices where “green means green.” That is, We are very focused on the developing world. As a com- we’re not pursuing environmental initiatives for the sake of pany that provides infrastructure technologies in areas such environmental initiatives. We’re pursuing them because we as energy, engines, and healthcare, GE must be positioned can solve problems and make money at the same time. That to sell those products to markets that are investing in those is what’s so powerful. areas at a very rapid pace. In addition, we’re looking at ways that we can improve When you look at regions like China and India, they are people’s lives and make money simultaneously. I’m a big really being driven by demographics. They’ve got a growing advocate of using technology, innovation, and commerce middle class and governments making big investments in as ways to grow profitability and improve standards of

BizEd May/june 2006 21 THE RICHARDS GROUP TRG JOB #: 06-0239-SBU My primary fear about business schools is that they tend to be lagging indicators, CLIENT: SMU AD NAME: not leading indicators. They tend to do things after they happen. Passport PUBS: BizEd INSERTION DATE: May/June SIZE: 8.375 x 10.875 LIVE: living at the same time. In our “Healthcare Re-imagined” want to intensify the study of what faculty thought the next 7 x 9.625 BLEED: initiative, for example, we can make money by helping to ten or 15 years would bring. I think business schools can do 8.625 x 11.125 lower the cost of healthcare and improving the product. a better job of thinking about what’s next. COLOR/LS: That’s an idea that business and business schools can The second thing I’d really want to do is to re-engage CMYK/133 QUESTIONS CALL: promote. people around innovation and risk-taking. I want students to Jen Duncan remember that the reason they’re getting their MBAs is to 214-891-5808 It has been more than four years since you became have some personal flexibility. They need to use that flexibility CEO at GE, following in the footsteps of Jack Welch, to take some personal risk. I frequently run into MBAs who one of the most prominent CEOs on record. Today, are risk-averse, and I never quite understand it. you’re ranked among the most admired CEOs in the The third thing I’d do is to emphasize team-building. world. What has enabled you to inspire such recogni- Good business is about good ideas, and good ideas come tion and separate your leadership from that of your about when good people work together. predecessor? I never think about how I have to do things differently; You say that MBAs are too risk-averse. What have I’ve never made that a priority. What I would say is that the you seen to give that impression? world’s a lot different today and we lead the company in Too many MBAs only think about playing it safe. You know, a different way than when Jack was CEO. When you run everybody graduates from business school and wants to go GE, the company itself is what people look at more than to work at a company like McKinsey. Why? Because it’s the anything else. It’s not so much about who the CEO is; it’s safest choice. When I went to work at GE in 1982, I was more about what the company does. the only person who graduated from Harvard that year who went to work at GE. To be able to truly develop in your How would you advise business students to develop career and take risks, you need to go to work where no one their own approach to leadership? Do they need to else in your graduating class does. If 18 people in your class follow their own paths? Or is it acceptable if they are going to work for a company, that’s a sure sign you need emulate someone like Jeffrey Immelt in their own to work somewhere else! leadership development? I think that’s a great question. When I’m at business schools Last year, Jack Welch wrote the book Winning, his or talking with our own employees, I always say that good treatise on what makes a great leader. If you were With Our International Connections, leaders tend to be good students of leadership. I have always to write your own book of business advice aimed at encouraged that approach. The real challenge is to put what business faculty and students, what would be its title you learn into your own context. Leadership is ultimately a and central message? Our Students Can Go Anywhere. journey into yourself. It’s how fast you want to change. It’s I can’t envision myself ever writing a book. But if I did, about self-renewal, self-inspection, and self-improvement. I think its working title would be Leading Innovation. Its The best people will pick up ideas and approaches from central message would be that we need more good ideas. It’s one thing to say you’re a global business school. Quite another to actually be one. At SMU Cox, other leaders, but at the same time, they will incorporate The U.S. has a $700 billion trade deficit right now, mainly we require our full-time MBAs to get ﬁ rsthand international experience through our American Airlines what they learn into their own personalities and styles. because there are too few good ideas that we’re driving as a Global Leadership Program. And our Executive MBAs participate in two international trips to Cuba country. When you look at China, you see a complete focus and China. Additionally, more than one-third of all full-time Cox students come from outside the U.S., If you were to become the dean of a business school on new ideas and a commitment to make them happen. and our BBAs represent more than 37 different countries. Global experience, an international student after your tenure at GE ends, what would be your top When you look at India, you see a tremendous focus on edu- body, and alumni chapters in over 20 countries–that’s why a degree from Cox is a passport to success. priorities for your faculty, students, and curricula in the cation that gets played out inside the middle class. That kind coming decade? of focus drives good ideas. When those ideas go on around For more information, visit www.smucox.com or call 214.768.9022 My primary fear about business schools is that they tend to the world, it’s like a renewable energy. be lagging indicators, not leading indicators. They tend to I would want my book to stimulate the notion that success do things after they happen. Take corporate governance. I is all about great ideas and finding ways to bring those ideas don’t know how many schools today teach courses on cor- more to the fore. That’s what made the United States the porate governance, but the time to teach that course was in industrial powerhouse that it is today. That’s what needs to the late 1990s. I’m not saying that it’s no longer important, be rejuvenated inside the minds of people coming out of

but now the cow’s already out of the barn. So, first, I would business schools. ■z Southern Methodist University will not discriminate on the basis of race, color, religion, national origin, sex, age, disability, or veteran status. SMU’s commitment to equal opportunity includes nondiscrimination on the basis of sexual orientation.

22 BizEd May/june 2006

060239SBU Passport BE 8_3x10_8.indd 1 3/24/06 11:12:36 AM The of Peace

When students learn ations that share profitable enterprises are less likely to war against each other. Individuals with wealth and status have a stake in avoiding conflict. Developing countries whose poorest citizens can engage in how commerce can entrepreneurial activity have a chance to lift themselves out of poverty. If, as many business leaders believe, commercial enterprise can promote lift communities out N peace, then business schools can play a part in improving the world. By teaching students the principles and consequences of business, they can demonstrate the powerful of poverty, rebuild connection between business and peace. Many business educators are already in the vanguard of the “peace through com- nations after war, merce” movement, including David Cooperrider at Case Western Reserve University in Cleveland, Ohio. “Business could be the most important ground and force for and create alliances peace,” Cooperrider argues in a foreword he wrote to the 2006 book Appreciative Intelligence. “The 21st century is going to be a time when we learn to unite the dyna- between countries, mism and entrepreneurial capacities of good business with the global issues of our day.” Cooperrider is founder and director of the school’s University Center for Business as an Agent of World Benefit, a global forum for finding and disseminating information they get a glimpse of about ways to improve business and the human condition. Case Western is among the dozens of schools that shared information about their what business peace-based initiatives with AACSB International in a recent member survey. AACSB’s board of directors launched its Peace Through Commerce Task Force last summer can do to promote to explore the relevance of peace-related issues to business schools and to collect and share data on what business schools can do. This survey was one of the task force’s world peace. initial steps. AACSB’s international structure makes it particularly suited to promoting world peace through business, notes Richard E. Sorensen, dean of Virginia Tech’s Pamplin by Sharon Shinn College of Business in Blacksburg, Virginia, and AACSB’s chairman of the board. With more than 1,000 academic members from all over the world—including 515 educational institutions in 28 nations—AACSB is truly a global force, he points out. “Through AACSB, people from different cultures have learned to work cooperatively together for our common goal. Through our ‘thought leadership’ initiative, we are now accepting the challenge to work cooperatively together toward an even higher goal of enabling peace through commerce.” AACSB members who responded to the Peace Through Commerce survey described a wide variety of efforts both massive and intimate—everything from helping former Russian provinces develop degreed business education programs to helping Haitian villagers set up a bakery. The following stories, drawn from the surveys, underscore the many diverse and powerful ways that business schools can contribute to peace.

24 BizEd May/june 2006 illustration by J. W. Stewart BizEd May/june 2006 25 Georgia State University soon will begin offering Ph.D.s. Meanwhile, the Caucasus School has become involved in outreach programs of its own. New Markets, New Schools Recently, in cooperation with Georgia State, the school com- Peace begins with education, at least at Georgia State Uni- pleted a leadership training program for 255 businesswomen. versity’s J. Mack Robinson College of Business in Atlanta. Three top graduates were selected to complete a monthlong Led by professor of management information systems Bijan internship and mentorship in Atlanta. Fazlollahi, the school has partnered with three universities in Funding for these programs has come from a variety of Azerbaijan and the Republic of Georgia to found manage- sources, including the U.S. Agency for International Devel- ment education programs. The goal was to help men and opment (USAID), the Eurasia Foundation, and the U.S. women of the former Russian provinces develop the skills State Department. Other school administrators who want to to start their own businesses or take positions with exist- add a “peace dimension” to their programs, but don’t know ing companies and thereby help the region move to a free where to begin, should first consider what partnerships they market economy. already have in place, suggests H. Fenwick Huss, dean of the Fazlollahi first grew interested in the region as a 1992 Ful- Robinson College. “For example, they may have a relation- bright scholar visiting shortly after Azerbaijan had become an ship in a developed country that is doing work in transitioning independent country. A few years later, he helped bring nine areas. They can then see which of those activities the univer- Azerbaijan exchange students to the U.S. For the next decade, sity can be involved in.” Fazlollahi worked with universities in Azerbaijan and Georgia He also recommends researching projects that are being so they could organize degree-granting business schools: an funded by third-party sources such as USAID. The orga- MBA program at Khazar University in Baku, Azerbaijan; the nization’s Web site (www.usaid.gov) contains information Caucasus School of Business at the Georgian Technical Uni- about what kinds of projects it’s interested in and in what versity and Tbilisi State University in Tbilisi in Georgia; and a parts of the world. management program at the Azerbaijan State Oil Academy in Baku. In each case, the Robinson College trained faculty and administrators in Atlanta with the goal of enabling them to educate students in their own countries. “We have done these things with them, not for them, which is a very important strategy,” Fazlollahi says. “All the programs are adapted to local needs. Each university offers its own degrees, and they are financially sustained.” Clearly it’s a major undertaking to prepare enough faculty to run a business school, and Fazlollahi explains how the process worked with the Caucasus School. First, GSU recruited faculty in related fields—such as mathematics or psychology—and brought them to Atlanta to train them in fields such as finance and organizational behavior. Faculty who passed specific courses at GSU were certified as being competent to teach those subjects. Fazlollahi notes that younger faculty, including doctoral students, were particularly good choices for undergoing this process. Within two years, the first class of MBAs graduated from the Caucasus School, and many of them were brought to Atlanta so they too could be educated as teachers. Today the Caucasus School has more than 1,000 students in its MBA/BBA program and has been accredited by CEEMAN. A recent grant from the U.S. Department of State is allowing Fazlollahi to bring five Caucasus faculty members to Atlanta and train them in GSU’s doctoral program, so the school

26 BizEd May/june 2006 “There are clear advantages to business in doing business where there aren’t wars. In having women educated. In tending to ecological issues. In taking care of HIV/AIDS.”

Judy Rodgers, Center for Business as an Agent of World Benefit, Case Western Reserve University

“Some of our largest recent funding packages have been in a profit and improve the world. It maintains an Innovation direct response to requests for proposals from USAID,” Huss Bank of such stories on its Web site (worldbenefit.case. says. “In 2006, the U.S. government’s budget for foreign aid edu/). Some are being turned into case studies and mini- is $9.1 billion. Some of the focus areas are business trade and documentaries that professors can use in class. The hope is investment, development assistance, and education. Those are to eventually compile 1,000 such examples. areas where universities have both expertise and interest.” “People will tell you that it’s the occasional odd busi- At Robinson, the programs that have resulted from such ness that does this, but that’s not what we’re finding,” says initiatives have promoted peace in several significant ways, Rodgers. She cites intriguing examples: The food company while benefiting faculty at both the Caucasus and Robinson PeaceWorks requires that all of its products contain ingre- schools, Huss says. “The Azerbaijan faculty are exposed to the dients from both sides of the Israeli/Palestinian divide. American way of life, the workings of the market economy, The high-end restaurant group Cabbages & Condoms in and modern teaching methodologies. They return as ambas- Thailand uses condoms in the decor and makes them avail- sadors for a positive relationship between their country and able at cash registers to promote the idea that unless talk of the U.S. Their students also are influenced by a feeling of condoms is as casual as talk of cabbages, HIV/AIDS will good will and desire for cooperation with the U.S.,” he says. run rampant. In turn, Robinson faculty have become more skillful at The B.A.W.B. also hosts a series of conferences that understanding and teaching about cultural differences, he bring together practitioners and academicians seeking to adds. “They have developed a worldview of global issues. combine the interests of business and society. For example, Better understanding reduces misconceptions and improves last fall’s summit on “The Future of Management Educa- the chances for peace.” tion at the Intersection of Business & Society” was a pilot project Weatherhead designed as part of its commitment Case Western Reserve University to the Aspen Institute’s Teaching Innovation Project. On October 23 to 25, 2006, Case Western will host “Manage- Changing the World ment Knowledge Leading Positive Change,” a conference it Business leaders should not just consider how to achieve has planned in conjunction with The Academy of Manage- peace through commerce, but how to participate in all the ment and the United Nations Global Compact. About 300 sweeping changes needed to save the world. That’s the phi- people are expected to attend, while thousands join in via a losophy at Case Western’s Weatherhead School of Manage- simultaneous Webcast. ment, particularly at its Center for Business as an Agent of Case is also exploring ways to change the world by chang- World Benefit (B.A.W.B.). The B.A.W.B. considers how to ing the way it delivers management education, specifically solve issues such as those outlined in the U.N.’s Millennium through its launch of the Global Business Studies Institute Development Goals: eradicating poverty, educating chil- (GBSI). The “school within a school” will be devoted to dren, promoting gender equality, combating HIV/AIDS, research, teaching, and service on business and international ensuring environmental stability, and more. (For a full list, relations. It will run alongside three similar schools that see www.un.org/millenniumgoals/.) will focus on social responsibility, entrepreneurship, and As society attempts to correct its greatest problems, “busi- health management. The GBSI is not devoted exclusively to ness has to be at the table,” says Judy Rodgers, executive world betterment, says Myron Roomkin, dean and Albert J. director of the B.A.W.B. But instead of trying to convince Weatherhead III Professor of Management at Case Western. business leaders to practice philanthropy or be socially But it certainly will be “training a generation of managers responsible, the B.A.W.B. focuses on mutuality. “There are who understand the culture, economics, and geopolitics clear advantages to business in making sure the bottom of the pertinent to operating in a global economy.” pyramid has money to participate in the economy,” Rodgers The GBSI will focus its research on small to medium enter- says. “There are clear advantages to business in doing busi- prises that are beginning to globalize operations, providing ness where there aren’t wars. In having women educated. In a network of resources to businesses in Ohio and beyond. tending to ecological issues. In taking care of HIV/AIDS.” It also will offer graduate, undergraduate, and executive One of B.A.W.B.’s main goals is to prove these advantages education programs. In conjunction with the B.A.W.B., the exist. Thus it has created the World Inquiry, a Web-based “school within a school” will be aimed at teaching today’s worldwide search for stories of businesses that seek to make students how to change the world—through business.

BizEd May/june 2006 27 “At this point, Walt Disney has become a prophet. It is a small world after all.”

D. Steven White, University of Massachusetts in Dartmouth

Fairfield University learn more efficient ways of running the bakery, storing sup- plies, and producing bread. Operations recently resumed, The Benefits of Bread Tellis says, and the villagers “are ecstatic.” Winston Tellis is a professor of information systems, but Although the unrest in Haiti has prevented Tellis from tak- he has also learned a lot about baking bread. For about ing students with him on site visits, they have participated at five years, he has been involved in the startup - andongo every stage, he says. And while he has involved his students in ing operations of a rural bakery in the Haitian village of informational systems courses, he believes students in almost Fondwa—and at every step he has sought the participation any management class could benefit from such projects. of his IS students at Fairfield University’s Charles F. Dolan “I teach a course called Technology and Society specifically School of Business in Connecticut. so I can get into these topics,” he says. “And I take students The story begins more than a decade ago when Tellis to inner city areas where they will be made to feel like minori- joined a group of management experts who were advising a ties—that’s how they ought to feel, because the rest of the microfinance organization in Haiti. As the organization grew, world is, in fact, the majority.” Students who understand both Tellis helped it acquire hardware and software; and, when the “reality and compassion” aspects of business might be bet- the bank grew large enough, students in his networking class ter qualified to be leaders, he says, as they are less selfish and designed a local area network. more focused on the necessities of doing business today. A few years ago, the microfinance bank asked Tellis to help one of its clients, a peasants’ association in Fondwa that want- University of Massachusetts—Dartmouth ed to start its own bakery. Tellis and an MBA class did the basic market research to determine the feasibility of the enter- Charitable Outreach prise, gauging population size, quantity of bread purchased, cost of raw materials, and availability of materials. Students devised a business plan, and Tellis went on a site visit. He admits the obstacles were daunting. The village was situated about an hour from the main paved road where the bakers would be able to sell their products at a twice-weekly market. There was no electricity, no running water, and no storage facility, although the microfinance loan would allow the association to purchase a building near the market. On the positive side, there were plenty of customers who had no other immediate source of bread. The only alternate bakeries were located in Port au Prince—and it took more than a day to complete the round trip between the city and the village. Tellis and his students also conducted market research on the technological aspects of running the bakery. Tellis steered the association away from acquiring a wood-burning oven because fuel is so scarce in the largely deforested country. Solar power was rejected as having insufficient energy for their particular needs, so ultimately the association purchased a generator to produce electricity for lighting and machinery. The locally designed oven ran on diesel fuel. Students at the University of Massachusetts-Dartmouth helped redesign the Web The bakery was successful at first, and the association site for Fairloom, a charity that sells work by Brazilian artisans. quickly paid off its debt. But a few years after its founding, the bakery shut down due to rising costs and poor manage- The region around the University of Massachusetts in Dart- ment strategies. “It dawned on me that we had transferred the mouth has the largest concentration of Portuguese-speak- technology successfully, but we did not transfer processes,” ing people in the U.S.—400,000 people of Portuguese Tellis says. heritage and 100,000 Brazilians. Thus, when professors His next step was to interview a Port au Prince baker to at the university’s Charlton College of Business look for

28 BizEd May/june 2006 international outreach programs, they often focus on the become a prophet. It is a small world after all.” Students at Lusiphone countries such as Brazil, Portugal, the Azores, the Charlton College have learned that lesson in the most dra- and Cape Verde. matic fashion as they use their skills to bring powerful good That’s particularly true for professors D. Steven White and into the world. Godwin Ariguzo, who are deeply involved in the school’s International Business Association. Through the IBA, juniors, SDA Bocconi seniors, and grad students annually embark on trips outside the U.S. to do pro bono marketing work for clients. White and Fund-Raising for Ariguzo were instantly interested when they heard a proposal to have business students help out a newly founded charitable Good Works enterprise in an impoverished Brazilian community. The charity, Fairloom, had been organized to MBA students at SDA Bocconi annually help artisans in the region make and sell Brazil- raise tens of thousands of dollars to ian bobbin-lace so they could use a portion of the support UNICEF charities. profits to support educational programs. Fairloom’s partner community is located in the village of For- taleza and includes 250 families of mostly mothers and children. During the 2005–2006 school year, students in marketing and information systems classes made Fairloom the heart of their projects-based courses. Seniors in the international marketing course formed eight teams, many of them featuring Brazilian or Portuguese-speaking members, and developed eight separate business plans for Fairloom. Students in a principles of marketing class devised fund-raising tactics, while seniors in an MIS class upgraded the organization’s Web site and developed its e-commerce capabilities. Additionally, over spring break in 2006, White and Ariguzo took about 30 graduate and undergraduate students to Fortaleza to do volunteer work. They Raising money for UNICEF has become a tradition among helped the women there learn conversational English and MBA students at SDA Bocconi in Milan, Italy. Since 2000, business principles while building a production studio. students have organized an annual fund-raising event to When the students returned, they prepared proposals for benefit a particular UNICEF charity, collecting upwards of how Fairmloom can raise more funds. $50,000—about $60,600 in U.S. dollars—each year. Money Fairloom’s founder, Annie Doran, believes working with has gone to fight child labor in Nepal, develop school pro- the charity will have a profound effect on the students. grams in Iraq, benefit street children in Brazil, provide water “They’re on the verge of entering the professional world, and for schools in Angola, and educate girls in Eritrea. I want them to see the people they’re going to be affecting,” Students in the SDA Bocconi Ethica Club orchestrate she says. “These experiences create a different kind of mean- the fund-raising activities, meeting with UNICEF rep- ing and memory. I think the experience sticks with them.” resentatives to discuss available projects and then raising Working on the Fairloom project, says Ariguzo, has taught student awareness of the charitable cause. Club members students that “business is not all about accumulation of raise money by finding corporate sponsors, selling tickets wealth. Once you make money, what do you do with it? How to an annual event, and organizing raffles. do you make decisions as you prosper?” Students annually raise money for another charity by pro- It has also taught students that a local enterprise can have ducing the “SDA Bocconi MBA Calendar,” according to a global impact. Says White, “At this point, Walt Disney has Andrea Gasparri, the school’s managing director. The calendar

BizEd May/june 2006 29 “Trade causes peace through increased understanding and interdependence. Less trade causes less of both these things.”

John L. Graham, University of California in Irvine

features pictures taken by staff, students, and faculty, all on The 2004 program involved a relatively short visit, but a particular theme, and it is sold both inside and outside the Graham is working to launch an expanded peace-building school. “Last year, students raised $4,500 and donated them program that would take about 30 students overseas for a to Mahak, an NGO in Tehran for the cure of children’s semester. Teams of students from UCI and the University cancer,” says Gasparri. “This year the money will go to of Ulster would develop five-year business plans for clients Médecins sans Frontières for a water-sanitation project.” who manage social and commercial enterprises in Northern Such projects are challenging but rewarding for stu- Ireland. Ultimately, the students would match the firms dents, Gasparri says. “Students who choose to take part in with potential investors from California. these activities are deeply motivated and sensitive to ethical Any business school can promote peace in any region issues, as well to charity and fund-raising initiatives. These from Guatemala to Bosnia-Herzegovina, Graham believes, activities are quite demanding in terms of time and effort, if they use a similar model. One key benefit is that programs and they require strong managerial capabilities. Students like this teach students business ethics in the most dramatic must fit them in while following a busy MBA agenda.” way possible. Yet he clearly believes students learn a great deal from “In the finance classes offered in this country, we teach organizing conferences, looking for sponsors, and seeking students that selfishness makes a lot of sense,” says Graham. out key guest speakers, partially because these activities help “But business ethics courses teach students that they have them make contacts with top corporate managers. “They to consider a larger constituency, including poor people. can put into practice the lessons they are learning while also Those two lessons are inconsistent. If we take students creating a strong network,” he says. to post-conflict regions where inhabitants are trying to Students involved in the benefit fund raisers also get an rebuild their community, I think it broadens their perspec- intensive course in corporate social responsibility, Garparri tive on what’s important.” believes. “An ethical approach to business is fundamental The other benefits could have even more impact. “If the for managers who want to create a healthy working envi- MBA students do a good job, then enterprises in the war- ronment and contribute to the creation of a positive cor- torn communities will survive and thrive,” he says. “Jobs porate image and identity,” he says. will be created, and entrepreneurship will be stimulated. Additionally, the MBA students themselves will learn about University of California–Irvine international business and social responsibility—which will be key for them in building ethical enterprises here in the Peace After War United States. Communities devastated by war face huge challenges even “Finally, both sides learn to understand and befriend once that war is over. “Declaring peace is very differ- one another,” says Graham. “Social relationships can ent from building peace after the fighting has stopped,” evolve into long-lasting commercial relationships that says John L. Graham, professor of international business strengthen peace.” at The Paul Merage School of Business, University of California in Irvine, and director of the Center for Citizen Peace in Our Time Peacebuilding. “Outsiders can repair roads, houses, and While Graham is working on one specific plan to promote communications. But the people who have survived the peace through commerce, he believes the effects can be conflict must eventually rebuild their own communities if dramatic and worldwide. In a chapter he contributed to peace is to persist.” the 2006 book War and Reconciliation, he notes, “Trade Graham’s dream is to bring American business students causes peace through increased understanding and inter- to Northern Ireland to help rebuild communities that have dependence. Less trade causes less of both these things.” been decimated by war. In 2004 he successfully completed Instead of dropping bombs on Middle Eastern countries, a pilot program between UCI and the University of Ulster, he says, “we should be giving them computers and Internet taking 21 MBA students to Dublin and Belfast for a four- connections. The cost of a cruise missile is about the same day international residential course. After meeting with as 1,000 Apple computers! And, at the most fundamental University of Ulster graduate business students and man- level, coercion does not work. Exchange does.” agers, teams of students developed business plans for two To successfully promote the notion of peace through commercial businesses and six social enterprises in Ireland. commerce, schools might need to undergo a fundamental

30 BizEd May/june 2006 shift in what they emphasize, believes Tellis of Fairfield organizations find ways to integrate social responsibility University. For instance, he says, most schools groom into the job descriptions of every worker, this idea isn’t students to think that a desk in a corner office is the top going to go anywhere.” goal. “We should probably encourage our students to go That being said, Roomkin still feels hope, especially if to a service experience before they go into the real world,” business schools promote the agenda of social responsibil- he says. “Even if only 10 percent of the students gained ity. “If we address people’s underlying causes of conflict— anything from the experience, the world would be a little hunger, disenfranchisement, health—we have a chance better place.” at playing a role in commerce and leading the peace,” But there’s danger in that approach, too, warns Room- he says. “But if business schools don’t fuel the fire, then kin of Case Western’s Weatherhead School. By producing a organizations will have even less reason to change. And generation of business graduates who passionately believe in unless organizations change, peace through commerce is sustainable development, corporate social responsibility, and not going to work.” the infallibility of peace through commerce, schools might While business must be involved in the solutions to the be preparing those graduates for a frustrating working life. world’s problems, says Rodgers of Case Western, “you “The incentive systems aren’t well aligned.” Roomkin can’t talk about business without talking about the educa- says. “If we take in students who want to change the world, tion of business leaders.” And if today’s business students they may have to pay an atrocious price financially or per- are taught how to change the world, surely peace will be sonally to have jobs that allow them to do that. Unless more than just a concept they learn in class. ■z

BizEd May/june 2006 31 The Global Footprint

any business schools have added the word “global” to their course catalogs and brochures, but how many business schools have actually developed and implemented a comprehensive A business school global approach to education? And how many are taking a must examine six true measure to see how global they really are? MPerhaps far too few, as we found in a survey we recently conducted at the essential components Rollins College Crummer Graduate School of Business in Winter Park, Florida. The survey queried school administrators at MBA programs worldwide about the of its program to curricula, students, and faculty in their MBA programs. Most of the 67 schools that responded to our survey indicated that globaliza- create an effective tion is a major influence on their programs. They touted the importance of devel- —and ongoing— oping global business education and graduating global business leaders. Even so, some also admitted to shortcomings in their current models of global education. globalization strategy. Many acknowledged that they were hindered by unsystematic and incomplete reviews of their schools’ globalization efforts; a narrow focus on a single dimension, such as curriculum, exchange programs, partnerships, or student recruit- by Ilan Alon and ment; and no overarching globalization strategy. Craig McAllaster We recognize that even our own survey was limited in its global scope. We were pleased that the 67 MBA programs in our survey represented 19 countries and five continents. However, more than half of the programs, 36, were from AACSB-accredited public universities in the U.S. Even so, we view this survey as a first step in measuring the collective global footprint of business schools. Moreover, the results of this survey can serve as a place to start in developing best practices for globalizing business education. Drawing on results from this survey, we have established a model to help business schools develop more clear-cut strategies and more effective practices to globalize their programs. We call this multidimensional model the “global footprint.” It includes six primary dimensions of the b-school program: the core curriculum, language study, student and faculty diversity, and student and faculty global experience. By assessing and addressing each of these dimensions, a business school can construct a global strategy that serves its students, advances its mission, and helps it establish a competitive position among international peers.

32 BizEd May/june 2006 photo by Peter Cade/Getty Images BizEd May/june 2006 33 Curriculum One of our fundamental questions centered on how survey Global Footprint Framework participants had chosen to integrate international topics and global business into their curricula. We provided space for Interface respondents to give examples of how they have adopted Faculty Student international business—whether they added a core course; Dimensions Global Dimensions created new electives, major concentrations, or degree Curriculum programs; infused the subject throughout every course; or opened a center of study. Faculty Global Cross-cultural Their responses indicated great variation in how schools Experiences Diversity in Students are integrating global subjects into the core curriculum. Rath- er than start a course on globalization, for example, the China Globalization Europe International Business School (CEIBS) in Shanghai Footprint has integrated a global focus into every part of its core cur- Cross-cultural Student Global riculum. Its contention is that its faculty cannot teach subjects Diversity in Experiences such as marketing, finance, or economics without using glo- Faculty balization as a central component. At the Crummer School, Languages of we require students to take two courses in international busi- Instruction or ness, one of which may be a study abroad experience. Learning A school with the resources to “do it all”—establish electives, launch degree programs, open a center, and infuse a Our model of a school’s “global footprint” includes six dimensions: broad worldview of business throughout all courses—can be core curriculum, language study, student and faculty diversity, and said to have a curriculum that is comprehensively global. But student and faculty global experience. few schools have that kind of funding at their disposal. There- fore, the process requires thorough and thoughtful discussion among administrators, faculty, and students. Through that nationality of its student body was completely homogeneous. discussion, a business school can set priorities and determine Other schools are doing better, if only a little. Thirty-one of which options work best within its individual budget and the 67 schools reported that fewer than 20 percent of their objectives. students came from another country. Fourteen reported that 20 percent to 39 percent of their students were inter- Language Study national. Eighteen schools reported that 40 percent to 60 Respondents were asked whether or not they require their percent of their students were international. students to learn a language other than their own. Most Only three schools have developed very strong showings schools rely on the fact that English is currently the lingua in student diversity: They reported that no single nationality franca of international business, and that English proficiency dominated their student populations. automatically provides students with international capability. In fact, 57 of the 67 schools in our sample offer classes Students’ Global Experience exclusively in English. The MIB School of Management in We also wanted to know how many business schools Trieste, Italy, for example, is among the first MBA programs required their MBA students to supplement their course- in Italy to provide courses in English only. Very few schools work through study or consulting projects in other coun- in our survey provide more than one language of instruction, tries. While 38 schools offered students the opportunity although some do place an emphasis on multilingual ability. to take international study trips ranging from one to three HEC Montreal in Canada, for instance, instructs its MBA weeks, only 11 schools in our sample made international students in English, Spanish, and French. study a requirement. At 38 schools, international internships and work experi- Student Diversity ence are not offered. International student consulting projects Admitting a diverse student body is still a challenge for many were even more of a rarity; 44 of the 67 schools did not make schools in our sample. For example, one reported that the international consulting opportunities available.

34 BizEd May/june 2006 Most business schools want to offer their students an international perspective; but if their own faculty members rarely travel, they are essentially asking their students to “do as they say, not as they do.”

Faculty Diversity assign someone direct responsibility for implementing best We asked our survey participants to describe the cultural practices and evaluating the results. Other schools have makeup of their faculties, as well as the experiential back- launched initiatives that include: grounds of their faculty members. Most schools—about n Developing and leveraging international partnerships to 50 percent—reported that between 1 and 39 percent of create new opportunities and extend reputation. their faculty have been recruited from outside the school’s n Creating MBA programs targeted specifically to interna- home country. tional students. Creating an ethnically diverse faculty is yet another chal- n Integrating a thematic core curriculum involving teams lenge among survey respondents. Among the 67 respondents, of faculty. all report that a majority of their faculty share a single nation- n Requiring students to achieve proficiency in multiple ality. Ethnic minorities make up fewer than 20 percent of the languages. faculty at 43 of the schools in our survey. n Establishing a center for the development of international research, courses, and training. Faculty International Experience n Participating in faculty and student exchanges. Finally, we asked survey participants about the internatinal n Creating joint programs with organizations such as the experience of their faculties. Most business schools want to Peace Corps or the World Bank. offer their students an international perspective; but if their n Requiring students to create international business plans own faculty members rarely travel, they are essentially ask- for companies. ing their students to “do as they say, not as they do.” Such n Requiring students to travel overseas. a discrepancy may send the wrong message, especially if a n Integrating cultures in the classroom. business school wants to present a global character, not only n Involving students in joint programs with business stu- to students, but to peer schools. dents in other countries. Although faculty at most of the 67 business schools in our n Encouraging students to complete part of their studies at survey travel internationally for conferences or presentations, a school in another country. not nearly as many make efforts to travel and teach abroad. n Actively recruiting international faculty. That is, few volunteer to lead international student trips, teach n Providing funds for faculty to travel to other countries. at partner schools, or consult for international companies. n Encouraging faculty exchanges with schools in other Among our sample, 51 of 66 schools reported that fewer than countries. 20 percent of their faculty regularly lead international trips. n Including international study trips, consultations, and In addition, 38 of 66 reported that fewer than 20 percent of research in faculty development activities. their faculty regularly teach or consult abroad. n Assigning an administrator to track, evaluate, and adopt global best practices. Moving Toward Best Practices Of course, business schools that post high marks in all six of As our survey shows, even though globalization is labeled these dimensions can confidently claim a large and compre- a priority at many schools, it often still does not receive the hensive global footprint. However, 100 percent success in same strategic attention as other aspects of the business pro- all six dimensions is not necessarily the desired objective for gram. By assessing the six dimensions of its global footprint, an individual business school. The level of internationaliza- a business school can devise mission-based objectives more tion within each dimension depends on a school’s strategy, wisely, allocate funding more effectively, and integrate global budget, human resources, competitive environment, institu- topics into its curriculum to its best advantage. Only then tional context, and student demographic. can a school know if its global footprint is sufficient for its While one size won’t fit all, however, respondent schools purposes—or far too faint to make a mark in the global busi- generously shared their best practices for adopting and ness education market. ■z integrating globalization into their programs. For example, a few schools, such as the Georgia Institute of Technology Ilan Alon is associate professor of international business and director in Atlanta, have appointed “czars of internationalization” of global consulting projects at Rollins College’s Crummer Graduate to oversee their university’s globalization efforts. Such posi- School of Business in Winter Park, Florida. Craig McAllaster is dean of tions not only formalize the globalization process, but also the school.

BizEd May/june 2006 35 FourThe Stages of Management Education

20-year-old undergraduate with a marketing major doesn’t have much in common with a 60-year-old CEO of a multimillion dol- lar firm. Even so, if business schools had their way, both would find their educational needs served by the same institution—and so would executives at every stage of their careers. AThe truth is, at different points in their lives, business executives need wholly different types of management education. This fact should have profound consequences for business schools, yet administrators rarely consider it as they design their programs or select their faculty. A lack of alignment between what Managers require the market needs and what business schools offer has been the primary cause of the soul searching that has been rife within the business school community for different kinds of the past several years. I believe that business education should be broken into four categories that education as they correspond to the four different kinds of education executives require as they move through their careers. At the outset of their careers, managers must be progress through their functionally competent. As they take on more responsibility, they must have a grasp of context and strategy. As they rise higher in the ranks, they must careers. As business develop the leadership skills needed to understand and influence people. As they become CEOs and other top executives, they must develop the reflective schools seek to match skills to understand what they wish to accomplish. Schools that cater to these differing needs can position themselves along their offerings with a continuum of education. Most schools are doing an excellent job in some areas, although they fall down in others. In fact, I do not believe that it’s easy executive needs, they for schools to serve all of the needs of all participants across the whole range of career stages. The schools that try to do so must be quite large and must carefully may find they can’t be select and allocate faculty. Few succeed. It’s better for schools to focus on the all things to all people. areas of business education that work best for them—and their students. One Stage at a Time by Kai Peters At different points in their lives, executives must acquire, and business schools can help them hone, four distinct skills: Functional competence. At the most basic level of ability, managers must understand the fields of finance, accounting, marketing, strategy, IT, economics, operations, and human resource management. Business schools are actually quite good at fulfilling these needs at both undergraduate and graduate levels. Business school departments most frequently are organized by functional silos, and academic journals also mirror those disciplines. Many studies acknowledge that graduates at this level are satisfied

36 BizEd May/june 2006 illustration by David Cutler BizEd May/june 2006 37 I’ve seen courses fail miserably because students were being taught an idea at a stage in their lives where it simply had no meaning for them.

with their knowledge acquisition and value their increased skills than traditional business school academics. It certainly won’t once they are in the workplace. be the resident professor of accounting! An understanding of context and strategy. Problems begin to appear at the next level of management. Rising executives Four Lessons for Administrators need to understand how organizational processes interrelate These four levels of managerial needs offer four lessons to and occur within a context. They must be able to make sense business school administrators: of societal changes, political drivers, social values, global 1. Age is a factor in management education. The primary need of interaction, and technological change. younger business students is to develop functional expertise. These needs present a dilemma for schools. One reason is While they also need to learn about context, organizational that there is little cross-functional research at many institutions. dynamics, and individual effectiveness, their most pressing Not only are there few outlets for interdisciplinary research, need for those skills will come later. I personally think it is not but it is difficult for any professor to be well-versed in a broad very meaningful to talk to 18-year-olds about organizational range of subjects. dynamics and how an acceptance of mortality will generate a But there is a more critical reason. Without practical need for reflection. I’ve seen courses fail miserably because experience, it’s impossible for faculty members to acquire an students were being taught an idea at a stage in their lives understanding of the multidisciplinary nature of the world and where it simply had no meaning for them. the specifics of managing within context. To understand— Similarly, at the senior management end of the spectrum, and teach—such skills, professors must have had hands-on there is no need to focus on functional skills. Executives experience within managerial environments, whether they acquire these at earlier stages of their careers—at one point, were in the private, public, or nongovernmental sectors. such skills were the “price of admission” for their ongoing The ability to influence people. Building on their understanding career development. Instead, senior managers will want to of the interconnected nature of management, executives at focus on questions of strategy, organizational dynamics, and the third level want to learn how to exert influence on their their own individual drivers. organizations. It is one thing to formulate a strategy, and it is 2. The changing needs of executive development should dictate quite another to implement that strategy while getting the faculty composition. Younger managers need instructors who buy-in of the rest of the staff. To be successful, managers can teach traditional subject matter. Those in the middle of must understand human drivers and the development of their careers need guidance from practitioners and integrators. collective views. They must cultivate a broad understanding Senior executives need coaches who can help them achieve of societies and the sociology of organizations, and they must wisdom, insight, and reflection. Practically speaking, then, be able to challenge and communicate. business schools need to employ academics in the functional Again, this presents a significant difficulty for business disciplines for younger students; consultants and “professors schools. There are simply not many faculty members who of practice” for mid-level students; and coaches, psychologists, have a psychological understanding of human drivers. In and very experienced former leaders for senior managers. addition, few faculty have any experience in practically 3. The size of the classroom will shrink as the age of the students influencing social constructs within organizations. goes up. A large classroom is perfectly acceptable when the Reflective skills. At the top level of management, executives subject matter is basic business content or the development need to develop themselves as human beings. Two consider of functional skills. It is possible to lecture about economics ations move them. First, as their seniority increases, they begin to a group of 100 or to use Internet-enabled technology to to reflect on their own wants, needs, and capabilities so they transmit information to almost limitless numbers. can set priorities and spend time on what’s most important. However, such transmissions of knowledge are less suitable Second, as they rise within management ranks, they inevitably for managers who already have some practical experience. are aging. Top managers not only must prioritize their work Issues concerning interdisciplinary and cross-functional efforts, but they also must prioritize their life goals. As they trade-offs involve decisions. Managers facing immediate realize they are mortal, they must consider what they want to business problems are looking for practical solutions from accomplish with what time they have left. instructors with real-world experience, not simply an Helping executives through these sorts of challenges is understanding of business theory. These participants benefit difficult for business schools. In fact, the best service providers from smaller groups that can offer in-depth discussion and at these times might be psychologists and life coaches, rather thoughtful insights.

38 BizEd May/june 2006 The Stages of Management Education

Undergraduate MBA/Masters Exec Ed Coaching

Age 20 28, give or take five years 35 45+

Educational Content Integration Action Reflection philosophy

Purpose Judgment/maturing/job Job Career progress Making choices

Class size Up to 600 75 30 1

Faculty Professor Practical professor or Professor of practice or Psychologist with professor of practice practical professor business insight

Faculty Peer-to-peer research Peer-to-peer research or Clients/personal/satisfaction/ Business impact drivers professional journals business impact

Audience Individual Individual Organization Organization via the individual

Success Entertainment and engagement Entertainment Impact Results

Teaching Lecture Case studies Live cases Dialogue style

Setting Concrete box Brick building Business class Luxury

Food Pizza Sub sandwiches Steak Caviar

At the most senior managerial levels, the group size is workshops, and comfortable chairs and quiet environments likely to be reduced even further. It is simply unsuitable to for executives who have come for coaching. discuss issues of personal priorities and boardroom dynamics If administrators do not segment properly, they face a in large group settings. In addition, there are practical host of problems. They might make the disastrous choice of challenges inherent in trying to assemble a large number of picking an introverted and function-driven faculty member senior managers in one room at a common time. Therefore, to lead groups that need to gain practical insights and learn executive education for top-level managers is likely to take integrative thought processes. They might schedule open place in relatively small groups. courses for senior managers, and then find themselves 4. Geography plays a part in education choices. Undergraduates teaching to empty classrooms. frequently seek out a school that provides an affordable, Administrators must give special thought to how to teach enjoyable study environment—and is close to home. MBA MBA students, who require a blend of functional orientation candidates looking for career acceleration are often drawn and integrative, dynamic instruction. Some studies indicate to urban centers where potential employers are located. By that the age of 28 is the breaking point. Younger students contrast, executives who are looking for a chance to be more need education that is weighted toward the functional reflective seek venues that are outside of the normal bustle of disciplines, while older students need a more integrated their busy careers. It is unlikely that one school can meet all experience. Mixing the two age groups can be suboptimal, these needs with one location. but many schools do it. Business schools aren’t the only ones that make mistakes Applying the Lessons in program format and delivery. Corporate universities and Administrators who understand the four stages of management management development departments do it, too. I’ve spent education, and the lessons derived from them, have a clearer considerable time trying to talk companies out of providing perspective on how to organize their schools. If a business “courses” for their staff development when a more action- school decides to cater to managers at specific career stages, learning, integrative design would have been far more this decision will influence the type of faculty the school hires, successful for participants. as well as the types of programs it provides—whether these Sometimes the challenges of alignment and segmen are BA programs, MBA programs, open courses, tailored tation—including co-locating different activities—can have courses, or coaching services. Determining what market seg- hilarious outcomes. Watching undergraduates or younger ment to serve will also help administrators choose the physical MBAs devouring coffee and cake laid out outside classrooms location where learning activities will take place. There will be for executive education audiences is like watching locusts fixed seating for large groups, loose seating for participants in descend. Having coaches and reflective psychologists teach

BizEd May/june 2006 39 It is critical for business school administrators to understand how to segment their target markets and align their offerings.

fact-driven, functionally oriented engineers in MBA programs located in a small town, it should focus on local students. has caused class boycotts. In those cases, the school didn’t Similarly, administrators must realize how the populations realize it had to tailor its offerings to its audience. they serve affect their classroom and faculty structures. Schools with large undergraduate programs require a large Understanding the Market faculty and a steady cash flow, but they are likely to be more It is critical for business school administrators to under- successful at research than schools dependent on fluctuating stand how to segment their target markets and align their MBA populations and small faculties. offerings. Because managers have such a broad range of I believe that alignment and segmentation are ultimately needs over the course of their careers, they require a broad good for business schools. Specialization generates expertise range of faculty, teaching models, group sizes, and physi- and promotes differentiation. With differentiation, schools cal locations to help them learn. To be successful, schools can communicate a clear message to a defined market. must identify which segments of the management educa- Differentiation also allows for a broad range of schools to tion population they can best serve, and then concentrate thrive in the market. When all schools claim to be all things on those segments. to all people, they will do some things very well—and other It’s also critical for administrators to understand how their things very badly indeed. ■z physical locations should influence the kinds of programs they offer. If a school is located in London or New York, Kai Peters is chief executive of Ashridge Business School in the United it should be serving the global business community; if it is Kingdom.

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40 BizEd May/june 2006 Dean and CEO

oday’s business school deans have much in common with chief executive officers of major corporations. They run complex, money- making enterprises that have to keep pace with the competition and respond nimbly to changes in the corporate world. They demonstrate strong leadership as they motivate and manage their senior staff. They Twork long hours, travel around the world, and act as the most public faces of their organizations. But deans also must handle the challenges of the academic environment, which include raising funds and supporting research initiatives. Few CEOs If business schools have to add such duties to their list of responsibilities. In fact—as eight international deans profiled here can attest—today’s deans must fit one of the operate like most complex job descriptions on record if they are to survive and succeed. businesses, should Groomed for the Role Today’s deans are more like CEOs than ever because business schools deans consider are growing closer to the business world, says Gabriel Hawawini, dean of INSEAD in Fontainebleau, France, and Singapore. This convergence is themselves chief happening, he says, “partly because schools need the support, partly because executive education is becoming of greater importance, and partly because executive officers? business is now starting to say what it wants from business schools—in the type of MBA graduates it wants, for example.” In the past, as business schools delivered education via disciplinary silos, schools sometimes preferred a dean who would not interfere with the tra- by George Bickerstaffe ditional academic structure. According to Peter Lorange, president of IMD in Lausanne, Switzerland, some schools tended to choose deans who would not cause any problems—who were, in effect, the weakest candidates. That’s no longer true. “The role is not ceremonial anymore,” he says. But are prospective deans prepared to act as CEOs—in effect, to take on the challenges of running complicated, expensive, international organizations? Maybe not. According to Leo Murray, former long-term dean of Cranfield School of Management in the U.K., business schools and the management education industry generally are not doing enough to groom individuals with the necessary skills of leadership, salesmanship, business acumen, and interpersonal communication. “Academia is not producing enough talent for business schools as an industry to remain successful,” Murray says. In fact, unlike the business world, the academic world offers little formal training to candidates for top roles. “I think business schools only started to think about developing their own people relatively recently,” says Chris Bones, the principal of Henley Management College in the U.K. Bones is trying to amend that. Henley runs an advanced management program designed for managers, and recently the school opted to put one of its own young faculty through the program. Bones notes that academics

42 BizEd May/june 2006 illustration by Neil Brennan BizEd May/june 2006 43 “A great business school combines the best of academic and business cultures. The business experience helps deans appreciate the challenges students will face. The academic experience lets deans appreciate the importance of research.”

—Robert L. Joss, dean of Stanford’s Graduate School of Business

at other schools are also starting to put more thought into of the business world, it’s hard to argue that one set of skills management training for their young faculty. is preferable to the other. The broad consensus is that mod- Another source of training for aspiring deans is the New ern deans need abilities in each area. Deans Seminar offered by AACSB International. This year, “A great business school combines the best of aca- the program will be held June 25 through 28 in Tampa, Flor- demic and business cultures,” says Robert L. Joss, dean of ida. Topics covered include raising money, achieving accredi- Stanford’s Graduate School of Business in California. “The tation, managing change, and surviving other challenges that business experience helps deans appreciate the challenges face deans. With such advance training through seminars and students will face and helps them understand the importance management programs, tomorrow’s deans will be significantly of operational issues in the life of the school. The academic more prepared to take on their jobs as chief executives. experience lets deans appreciate the importance of research in keeping faculty at the leading edge of their fields. Deans The Business of B-School with academic experience also understand the challenges Unlike a major corporation, a business school is not just a involved in teaching MBA students. If deans lack experience cash-producing enterprise. It’s also an academic institution. in one area, it is very important that they recognize that and Should the top executives of such hybrid institutions practice do their best to compensate.” what they preach and conduct their schools like businesses? Deans need to develop a broad range of skills because Yes, but with a few key differences, believes W. Steve Jones, they have distinct and multiple roles to play—only a few dean at the Kenan-Flagler Business School at the University of them analogous to the job of a typical CEO. They must of North Carolina in Chapel Hill. “In a business, the mea- provide ethical, educational, and managerial leadership for sures of success are very simple—ROI, earnings per share, and faculty, students, staff, and alumni. They must raise the so on,” he says. “At a school, the important measures are the funds necessary to maintain and enhance the institution. knowledge you generate through research and how you pass They also must ensure the efficiency of the school’s internal it on to students.” A school’s success isn’t calculated over the workings, watch the competition so the school can address short term, he adds. “It’s not about quarterly results.” its weaknesses and exploit its strengths, and act as the exter- Jordi Canals, dean of IESE Business School in Barcelona, nal embodiment of the school. Spain, believes “a business school has to be both a busi- Says INSEAD’s Hawawini, “The dean’s role is essentially ness and a school. If you’re too much a business, then you to connect to the external world in general and the school’s become like a consulting firm or a corporate university.” On alumni network in particular, though that assumes that the the other hand, he adds, a business school that is not run school is internally strong already. If it’s not, then—while like a business becomes no different than any other academic communicating externally is always important—the role might unit within a university, with none of the special attributes be more internally focused to help to build up the school.” and abilities a b-school can possess. Jones of Kenan-Flagler and Canals of IESE both believe Standalone schools that are not part of a university that a dean has a set of interrelated goals: The dean must system are run even more like businesses—with one huge establish a mission, then formulate a strategy to achieve that difference, says Bones of Henley Management College. “We mission. Part of the strategy involves hiring an outstanding have to act to ensure our continuing existence, like any other faculty and a dedicated staff, who will work to achieve the group of managers,” he says. “And—and it is an ‘and’ not a school’s long-term goals. Therefore, says Canals, it is critical ‘but’—we are also a charity. We have a role in helping to bet- to set a mission for the school and ensure that the faculty’s ter people. Our goal is more than just making a big surplus. interests align with that mission. So while we will want to be businesslike and professional, we Canals also believes deans have a wider role in helping would never move away from that charitable ethos.” to develop the management education industry generally, through involvement in bodies like AACSB International A Demanding Skill Set and the Graduate Management Admission Council. At Precisely because a business school blends business and the same time, he says, business school deans have a much academia, there’s ongoing debate about what kind of back- broader mandate: They must interpret business to society ground a dean must have to be the most effective top officer. and communicate to corporations what society expects of While an academic might have a better grasp of managing them. Thus, he says, deans are not just contributing to their faculty and a business professional might have a truer picture own schools, but to society as a whole.

44 BizEd May/june 2006 he adds, “there is further prioritizing based on where my involvement has the greatest leverage.” Jones gives this advice to deans: “Determine where you need to be personally involved, and then delegate in areas where you not only don’t need to be involved, but where others are really more effectively engaged than you are. For example, there is a lot of ‘prospecting’ work in fund raising, where development staff are better and more effectively Money and Travel employed than the dean.” Even without the world outreach, deans have plenty to Hawawini notes that business schools today are run by a occupy them on campus. Their time is divided into a whole team, not a person; and his own team includes a deputy dean host of duties: raising money, handling faculty issues, dealing for faculty and a deputy dean for administration. Stanford’s with alumni, dealing with students, and meeting with corpo- Joss delegates many HR responsibilities to his senior associ- rate recruiters and school supporters. Since all the functions ate dean for operations, who functions somewhat as a COO. are critical to the school, a dean can be spread very thinly. For instance, says Joss, the associate dean helps recruit top “The workload is intensive, and you have to be organized,” managers and reviews all areas of the business school in says INSEAD’s Hawawini. terms of how they are positioned strategically and how they How many hours a dean spends on each particular task are managing financial, human, and physical resources. varies with the school. Stanford’s Joss, for example, says he Although most deans believe in delegating, they empha- spends approximately 40 percent of his time raising funds. size that some responsibilities need to be handled personally Hawawini also gives a great deal of his attention to fund by the dean—such as faculty issues, relationships with key raising, especially since INSEAD launched a €200 million corporate supporters, and fund-raising efforts. fund-raising campaign in 2004. “Yes, you delegate; but you also have to make sure that Nonetheless, Hawawini estimates that he spends the bulk you know what is going on,” sums up IESE’s Canals. of his time—about two-thirds of it—on the road, meeting While it’s essential for deans to have strong support from corporate supporters, alumni, and friends of the school who their associate deans and staff members, they also must are not alumni. Every other month, he spends a week visit- establish good working relationships with their bosses, who ing INSEAD’s Singapore campus. Once a year, he visits each are usually university presidents. But sometimes, like CEOs, of INSEAD’s 23 local advisory councils in countries around deans must report to many bodies: the president of the the world. He travels to the U.S. two or three times a year university, the faculty, the international advisory board, the and is a frequent visitor to the Middle East. executive committee of the alumni association, and more. Lorange of IMD also divides his time between travel and Not all of these have the power to hire and fire, but they can on-site responsibilities. When he’s on campus, most of his make life pleasant or unpleasant for a dean, says Canals. time is taken up with staff and faculty meetings and answer- Edward A. Snyder, dean of the Graduate School of ing a heavy load of e-mails. The job “requires absolutely full Business at the University of Chicago, also acknowledges attention, six days a week, typically 10 hours a day,” he says. many bosses. He says, “Formally, I report to the university Still, most deans realize that any other top executive main- president. But I also try to elevate the advisory council to a tains a similar schedule. “The workload is comparable to that sort of board that I report to. These are very high-powered of a business professional like a senior lawyer or a senior busi- people. I also think that I report to the faculty, the students, ness executive,” points out Jones of Kenan-Flagler. and the alumni. Alums especially like to know the strategy and the financial picture.” Managing Time and Relationships To survive the demanding schedule, deans, like CEOs, Stepping Down must know how to delegate and set priorities. Jones says his At some point, no matter how good a dean’s relationship priorities are always driven by three central tasks: attracting with his staff, his board, and the university administration, he good people, ensuring the financial health and future of begins to consider retiring from his position. Some deans stay the school, and making sure it provides the right kind of in office for more than 20 years, but it’s more common for learning environment and experience. Within each activity, deans to keep their positions for one or two defined terms.

BizEd May/june 2006 45 “Deans who want to stay a long time can become too timid, and that’s not good. On the other hand, if your stay is too short you might become reckless.“

—Edward A. Snyder, dean of the Graduate School of Business at the University of Chicago

Canals at IESE admits that it’s difficult to set a time While a top CEO usually retires from the job altogether limit on how long one person should remain as dean. “As when he moves out of the corner office, many deans re- long as you are adding value, then you may go on if you enter the workplace as faculty. In fact, the desire to get want to,” he believes. “I think there are three dimensions: back to teaching or research can influence a dean’s decision How do stakeholders feel about you? How are you per- to leave. Deans rarely have the time to teach, though many forming against the metrics? And do you feel you are still try to take a class or two; they have even fewer chances to up to the job?” Even so, he is a firm believer in set terms conduct research or publish. that are neither too short nor too long, because these This can be worrisome. As Canals says, “If you think promote good discipline on all sides. He considers three you are not progressing your academic career by being a years ideal. dean, then it is time to step down.” Snyder at Chicago, who is coming up on the end of a Like retiring CEOs, deans want to leave behind prosper- five-year term, takes a similar view. “You try to do your job ous institutions that have clear directives for their future suc- and make the best decisions you can no matter how long cess. As business schools develop a greater understanding of you’re staying,” he says. “Deans who want to stay a long how much they resemble true businesses, more individuals time can become too timid, and that’s not good. On the will be groomed for the top position and given all the tools other hand, if your stay is too short you might become they need to achieve greatness in the dean’s office. ■z reckless. But I don’t really think it’s an issue. The only time wherecoming staying next long-term issue ad is 4/11/06good is in 4:20fund PMraising, Page where 1 it George Bickerstaffe is author of Which MBA?, an annual guide to can take a long time to build relationships.” business schools published by the Economist Intelligence Unit.

Coming IN THE JULY/AUGUST ISSUE

• Sara Martinez Tucker, head of the Hispanic Scholarship Fund, is passionate about getting more Latino students enrolled in college—and learning about business.

• Trend forecast: Nontraditional MBA Bi Ed programs are having a significant z impact on the way management education is delivered. Contacts: • A new course at Georgia State teaches integrated business Display Advertising: Annette Gonzalez DeLisle skills in a global context— [email protected] and its only textbooks are 813-769-6517 current newspapers and Classified Advertising: Debbie Wiethorn Thomas Friedman’s The [email protected] Lexus and the Olive 813-769-6522 Tree.

46 BizEd May/june 2006 Technology

Better IT, Better Business

The more technology has advanced, the more money companies have spent on IT to improve everything from productivity to communication. But even as they spend more in their IT budgets, many managers are wondering whether the investment is really worth it. Some business schools are now stepping in to offer programs that link IT savvy with management know-how, so that management and IT professionals can make better decisions when it comes to their IT expenditures. For example, since the 2000 launch of its Master of Science in Management of Information Technology, the McIntire School of Commerce at the University of Virginia in Charlottesville has seen a steady rise in the program’s enrollment. Aimed at working profes- Students in McIntire’s MS MIT program link technological savvy and management skills. sionals from one side or the other of the IT/management divide, the agement challenges they face at their that target the government and program is designed to teach both jobs as the basis for much of their finance sectors. groups how the other side works. discussion and assignments. Both Both Wixom and Huddleston “In the late 1990s and early tracks follow a four-module progres- say they’ve been most surprised by 2000s, people were throwing huge sion that includes IT architecture; the patterns of enrollment in the amounts of money at IT because IT project management; enterprise program. Early cohorts were filled they knew its potential. But they IT management; and the capstone mostly with lower-level managers were realizing increasingly low module, IT strategy and manage- who had been sent by their super- returns on their investment,” says ment. The capstone module also visors. But when those managers Cyndy Huddleston, assistant dean of includes a feature called “Executive returned to their jobs with improved graduate marketing and admissions. on Ground,” in which CIOs from skills, their supervisors decided to “We’ve spent the last five years try- companies such as Sprint and the enroll as well. Today, Wixom says ing to understand how managers can Peace Corps mentor students and that senior-level managers make up learn to use technology to save costs, help them with their final projects. nearly half of enrollment. create value, and drive business.” It took a year—and interviews “Our MS MIT program is Students can opt for McIntire’s with 40 managing partners and attracting IT professionals who want 12-month program, in which they CIOs—to create the MS MIT to think like businesspeople and meet every other Friday and Sat- degree, says Barbara Wixom, associ- managers who want to know more urday in Charlottesville; or its 16- ate professor of commerce and pro- about IT,” says Wixom. “All manag- month program, in which they meet gram director. Since then, 445 stu- ers want to know whether they’re every other Saturday in Reston. dents have completed the program, making the most logical IT decisions During the program, students con- and 72 are currently enrolled. In the and getting the most return on their tinue to work and use the IT man- future, the school plans to add tracks IT investment.”

48 BizEd May/june 2006 Databit The number of public wireless “hotspots” recently surpassed 100,000, up from 57,000 Rising Interest in Online Ed percent were interested just a year ago, according to classroom session with in accounting. JiWire, a California-based the rest of the course A recent survey indicates that adults may According to the company that helps mobile given online. be turning to online education survey, 42 percent of users find access and connect Respondents also in greater numbers. High Volt- respondents expected to wireless Internet service. were asked whether age Interactive, a California-based online education to be Which country has the most they preferred to learn marketing firm, surveyed 1,000 supplemented with face- hotspots? The U.S., with online or in the class- adults, most ranging in age from to-face meetings. In 37,073. Which city? Seoul, room, and why. When 24 to 65, regarding their attitudes addition, when it comes Korea, with 2,056. presented with seven about online education. Of those to taking a course that possible reasons, those surveyed, 74 percent indicated combines online and face-to-face who preferred to work online ranked they would consider taking classes interactions, respondents preferred the ability to “work at my own online. Moreover, when respon- to meet in person once a week (43 pace” and “work on my own time” dents were asked to choose among percent). Fewer were interested as their top two reasons for prefer- 27 online degrees, business was the in courses that met in person only ring online courses. Reasons such as most popular option, with nearly 50 once a month (31 percent) or once “cost tends to be less” and “usually percent expressing interest. Forty- a semester or quarter (17 percent). takes less time” ranked last. two percent were interested in edu- Only 9 percent preferred courses Those who preferred to work cation or human resources, and 36 that included a one-week intensive in a physical classroom presented

Tools of the Trade Hyperion Offers Software Grants to B-Schools

Hyperion, a software company in Santa Clara, California, the program also will provide hosted online access to more recently announced that its Academic Alliance Program will tools, applications, and resources. To that end, Hyperion offer software grants to business schools worldwide. The will begin testing remote, hosted access to materials, in grants will provide Hyperion’s Business Performance Man- which faculty and students can use its query, analysis, and agement software and enable its integration into business reporting tools. With these tools, users can develop custom, and business technology curricula. personalized “dashboards” over the Internet and use them The grant program will make available case-based to control and monitor their individual projects. Business Performance Management instructional materi- A growing number of companies are using business intel- als; demos and tutorials; computer-based training courses; ligence and performance management tools to manage their and white papers on the use of business performance businesses, says Valter Cantino, a professor at the Scuola di management and business intelligence tools. In the future, Amministrazione at the Universita di Torino in Italy. Hands- on experience with these tools helps students learn “to draw information from various managerial systems and processes, including financial consolidation, enterprise resource planning, and auditing and compliance,” he adds. Current recipients of the Hyperion Academic Alliance Program grants include the Universita di Torino, Chulalong- korn and Rangsit Universities in Thailand, and the Univer- sity of Baltimore’s Merrick School of Business in Maryland in the U.S. To learn more about the Academic Alliance Program, visit www.hyperion.com/services/education_services/ academic_alliance.cfm.

BizEd May/june 2006 49 Technology

a more mixed response. Younger Technology’s ‘Top Ten’ which allows wireless devices to respondents were more likely to share airwaves more efficiently; question the credibility of an online The March/April issue of Technology Review, stretchable silicone that will allow degree, while older respondents published by the Massachusetts for the manufacture of devices flex- were more likely to want regular Institute of Technology in Cam- ible enough to be rolled up like a face-to-face interaction in their bridge, included its 2006 list of “10 newspaper; and universal authentica- educational experience. When Emerging Technologies” that hold tion, which will assign Web users a respondents in both groups were the most promise for computing, code that allows them to move from asked what would most convince medicine, telecommunications, and site to site while keeping their per- them to take an online course, they business. sonal information secure. ranked “knowing the value of the In addition to a number of new To read a list and descriptions online degree” as the most impor- medical technologies, this year’s of all ten tech- tant factor. top ten included advances such as nologies, visit Databit To read more of the survey, visit pervasive wireless technology that www.technology According to a survey www.searchforclasses.com/temp/ can seamlessly link wireless devices review.com/ from CyberSource Corp., a surveyresultsshortversion.pdf. to data networks; cognitive radio, special/emerging. supplier of e-payment and risk management products, companies with online newsbytes decade. The creation of the Euro- piracy. Some operations lost $2.8 billion n GOOGLE TAKES ON FINANCE pean Digital Library was sparked by industry watchers to online fraud in 2005. In March, search engine giant Google’s 2004 announcement that fear it may result Google announced the launch of the popular search engine planned in Apple pulling iTunes out of France the beta version of Google Finance, to begin digitizing texts from major altogether. The law still must be which will compete with established libraries. The European Union reviewed by France’s upper house. financial sites such as Yahoo Finance, hopes that 2 million texts will be Marketwatch.com, and TheStreet. available online by 2008. n PROTECTING COPYRIGHTS com. The new wing of its popular Ever since the first songs, mov- search engine site will include stock n FRANCE TAKES ON APPLE ies, and images were posted online, market information, financial news, France’s lower house of parliament thieves have tried to infringe on their links to companies, blogs, and an recently passed a law that may put copyrights and steal them. To help interactive chart that connects world a halt to Apple’s dominance in that combat this problem, researchers at news and events to changes in stock country’s digital the Clark School of Engineering at prices. The site also allows users to music market. The the University of Maryland in Col- create personalized lists of stock new law requires lege Park have created a new form of quotes for selected companies and online music retail- digital rights management technolo- funds. Danny Sullivan, editor of the ers, including gy. The technology specifically blocks SearchEngineWatch.com, told CNet. Apple’s iTunes, to “collusion attacks,” in which thieves com that he wondered what took the provide users with avoid detection by working together company so long to enter this area of conversion codes that will allow to steal “pieces” of a movie or image the online market, adding that this them to transfer one format of digi- and then reconstituting the material was a “good move” for Google. tal music to another. The codes, in for distribution. Old theft-prevention place to protect copyrighted digital technologies would not be able to n ONLINE LIBRARY BY 2010 material, currently do not allow such track individual thieves in a collusion The European Union’s Informa- conversions to take place. The last- attack. The new technology, however, tion Society and Media Commission ing effects of the law are uncertain, embeds a unique ID code on each plans to make available an online but digital music providers have pro- piece of multimedia content, which digital library comprising at least tested the law as a measure that may can be traced back to the thieves, no 6 million texts by the end of this weaken their defenses against music matter how many.

50 BizEd May/june 2006 research tools, and a Flash movie to frame and contextualize a specific business climate,” she says. The series highlight the role history plays in business, both in informing its present and shaping its future, says Karen Bailey, curator of rare books for the library. The Web is one of a library’s most effective tools for making that historical information available, she adds. “The Web is a hub of discussion and an environment where ideas Biz History Comes Alive public. They are designed give visi- can travel, connect, and spread,” on the Web tors a chance to compare historical says Bailey. “There was never any events and ideas with their modern question that this type of dynamic Knowing the history of business is crucial counterparts, explains Mary Lee setting was perfect for a series like to understanding today’s business Kennedy, Baker Library’s executive Historical Returns.” trends. With this in mind, librarians director. “Each Historical Returns The capsule “Financial Bubbles” at the Harvard Business School’s capsule provides relevant mate- is now available at www.library. Baker Library in Cambridge, Mas- rial from our historical collections, hbs.edu/hc/historicalreturns. sachusetts, want to ensure that The release of the next installment the lessons of business history is planned for later this year. are widely available via its new series of Web-delivered media, iPod Nation “Historical Returns.” Comes to UMich The series combine a selection of original short films, The University of Michigan’s Ross School of Web links, books, articles, digi- Business in Ann Arbor announced a tal content, and digitized his- partnership with Apple, in which it torical documents from Baker will convert recordings of its events Library. The first installment of and seminars to podcasts. The free the series, “Financial Bubbles,” podcasts will be offered to the busi- depicts the similarities between ness school community via Apple’s the 1990s dot-com boom and iTunes Music Store. a similar financial crisis in 18th- Such information already was century England known as the available on its Web site; but school South Sea Bubble. Like the administrators felt that providing Internet craze, the years lead- it in podcast format would make ing up to the South Sea Bubble the audio versions more accessible, were marked by financial prom- since users can download them to ises, “irrational exuberance,” any MP3 player, as well as to their and the ultimate collapse of the desktops. The podcasts will include South Sea Company in 1720. channels for school news, events, These series are created for and seminars; centers and institutes; a general business audience, These two 18th-century images depicting the South Sea and publications. UM’s schools of and all of their information Bubble are part of the Baker Library’s online business music and dentistry started offering will be available to the general exhibit, “Financial Bubbles.” podcasts last year. ■z

BizEd May/june 2006 51 Research

Improving Healthcare: One Patient at a Time

What do a waiting room of patients at a busy Indianapolis healthcare clinic and an assembly line of cars at an automobile manufacturing plant have in common? Both can lead to a host of workflow problems if they aren’t handled correctly. That’s the assumption of new research by Her bert Moskowitz and Shuresh Chand at the Krannert School of Manage ment at Purdue University in West Lafayette, Indiana. They conducted their research through the Regen streif Center for Healthcare Engi neering at Purdue. Both professors have specialties in manufacturing management, but they became interested in applying their expertise to the healthcare field after hearing Paul O’Neill, former Secretary of the Treasury, speak at Krannert School of Management professors Shuresh Chand (left) and Herbert Moskowitz with their the University of Minnesota. As the computer simulation designed to streamline operations at an Indianapolis health clinic. CEO of the Pittsburgh Regional Healthcare Initiative, O’Neill empha of Factory Physics and Six Sigma times when they weren’t seeing sized the problems with the current Principles.” anyone. “With that kind of no-show healthcare system. Moskowitz and Chand pinpoint rate, doctors are often underuti “He said that there was a need ed several problems with the clinic’s lized,” says Chand. “Long waiting for people with skills in operations to operations. First, patient wait times times and uncertainty about when help make healthcare systems more at the clinic were long and unreli patients will see a doctor only make efficient and effective,” says Mos able. Second, inefficient patient no-shows worse.” kowitz. “That was a great motivation processing caused backlogs. Because The researchers decided to apply for me.” each medical assistant was assigned two tools readily available to manu When the Indiana Univer to a particular doctor and processed facturing but rarely used in health sity Medical Group (IUMG) only that doctor’s patients, one assis care: factory physics, which targets approached Moskowitz for help in tant might be overwhelmed with the behavior of a manufacturing envi improving patient flow at the most patients while another might have ronment, and Six Sigma, the quality problematic of its 18 outpatient none at all. Third, patient arrivals improvement methodology used at clinics, he and Chand had the per were erratic and unreliable. Even companies like Motorola and GE. fect opportunity to apply manu though the clinic made appoint “Right now, most healthcare opera facturing management principles ments six to eight weeks in advance, tions simply don’t have a systematic to healthcare. Their work with it experienced a patient no-show rate way of scheduling and processing IUMG is outlined in the paper of a staggering 40 percent. patients,” says Moskowitz. “Improving Patient Flow at an As a result, doctors often ran After observing clinic opera Indiana University Medical Group late in seeing their patients; or, if a tions, the two researchers created an Outpatient Clinic: An Application patient failed to show up, they had animated simulation using Extend,

52 BizEd May/june 2006 “By making healthcare operations more efficient, physicians, staff, and patients, as well as the patients’ employers, all benefit. It’s win-win-win.”

— Herbert Moskowitz, Krannert School of Management at Purdue University

a simulation software application more effective in teaching the MBA like Google, Amazon, and Wikipedia from Imagine That Inc., a company students in my process improvement are likely to win the media wars in in San Jose, California. Using the course,” says Chand. “By studying the coming years. simulation, they recommended that the clinic’s operations, we saw many E-business, says Bjørn-Andersen, the clinic implement the following things we don’t often see in a manu is growing at 30 percent to 40 per improvements: facturing environment. Batching, cent per year. This means that tradi n Convert 60 percent of its pooling, telephone interruptions— tional publishing companies are traditional advance appointments seeing so many elements in a single being threatened by companies like to same-day appointments (those example is truly rare.” Vodaphone, Nokia, Microsoft, made no more than 48 hours before Moskowitz and Chand will Google, and Amazon, as they begin arrival), which have a no-show rate continue to use simulations to to deliver content via PDAs and of only 3 percent. experiment with new approaches mobile phones. Printed information n “Batch” patient arrivals so that to improving patient flow—thereby sources like the Encylopedia Britan patients arrived in groups, rather than reducing cost—in healthcare environ nica are also threatened by the new one at a time. For instance, the clinic ments. They are now pursuing fund would ask nine patients to arrive for ing to study the use of radio frequen 8:00 a.m. appointments. New patients cy identification (RFID) technology would be asked to come ten minutes to streamline patient processing. early, while old patients would be With healthcare costs on the rise, asked to come five minutes early to companies in all sectors are eager spread arrivals. By batching patient to find ways to make the healthcare arrivals, the clinic could avoid the process more efficient, says Mos workflow problems that come with kowitz. “A significant portion of patients arriving late or not at all. the cost of any product pays for n “Pool” patients into a single employee healthcare. By making queue in the waiting room, so that healthcare operations more efficient, patients have equal access to all physicians, staff, and patients, as well medical assistants. If one assistant as the patients’ employers, all bene Niels Bjørn-Andersen is answering the phone or locat fit. It’s win-win-win,” he says. ing a missing record, another assis To read more about this and other electronic sources, such as Wikipe tant would still be available to help research at the Regenstreif Center, dia, a popular online encyclopedia. patients in the waiting room. visit www.purdue.edu/discovery Furthermore, Bjørn-Andersen In the simulation, the changes park/rche/index.php. points out that while consumers are reduced bottlenecks, improved quite happy to receive information on physician utilization, and improved The Death of the Internet, very few Internet users the no-show rate. The percent the Printed Page are actually willing to pay for online age of patients whose wait to see a content. “It is very difficult to cre physician exceeded 20 minutes was A recent study by Niels Bjørn-Andersen, a ate a sustainable revenue flow from reduced from 27 percent to just professor at Copenhagen Business Internet publishing,” says Bjørn- more than 3 percent. Clinic staff School’s Department of Informatics Andersen on his Web site. “E-media members were so impressed with in Denmark, predicts the demise is not stealing the business away from the simulation that they plan to put of the printed page may come sooner newspapers. It is simply eroding the these changes into action. than many think, as it loses ground current business models.” Moreover, Moskowitz and Chand, to electronic transmissions of infor Finally, Bjørn-Andersen notes that, as well as students who helped with mation. At a recent CBS conference, in the future, users will increasingly the research, learned a great deal the “eMedia-Nordic Seminar on personalize content for their indi from working with the real-world eBusiness and Media,” Bjørn- vidual consumption. “It is no longer healthcare environment. “I’m now Andersen noted that big players a question of a ‘push’ strategy, where

BizEd May/june 2006 53 Research

a media editor will decide the con of the drink was $2.89, but Ziv called SoBe Adrenaline tent,” he says. “Rather it is a ‘pull’ that it was purchased at a Carmon Rush, a drink that claims to strategy, where each of us will decide discounted rate of $.89. After improve mental acuity, and for ourselves one way or the other their workouts, each participant was then solved a series of puzzles. what we are interested in receiving.” asked to rate the intensity of the For example, one experiment For more information about workout. The researchers found that focused again on product discounts. the eMedia project, visit its Web those who believed the drink was Some students were told their uni site at uk.cbs.dk/forskning_viden/ discounted reported feeling more versity billing accounts would be konferencer/emedia. fatigued than those who believed the charged full price, or $1.89, for the drink was purchased at full price. SoBe drink; others were told that the Mind Over Marketing This study, however, measured product’s full price was $1.89, but only the participants’ perceptions that they would be charged a dis Physicians have long seen the placebo about product efficacy. The research counted price of $.89. Both groups effect with their patients—that is, if ers wanted to see whether market then consumed the drink and, after patients believe a pill will make them ing factors could actually influence ten minutes, solved a series of puzzles. feel better, it often does, even if the a product’s effectiveness. Therefore, A control group solved the puzzles pill contains nothing of medicinal they set up another series of experi but was not told about the drink and value. Ziv Carmon, associate profes ments to see what effect price and did not consume it. sor of marketing at INSEAD in Fon marketing have on product efficacy. In another experiment, research tainebleu, France, and his colleagues In each experiment, groups of stu ers studied the power of marketing Baba Shiv, associate professor of dents consumed an energy drink messages on product efficacy. In marketing at Stanford University, and Dan Ariely, professor of man agement at MIT, wanted to discover UPCOMING & ONGOING each. For information and an entry whether or not the placebo effect form, visit www.ifc.org/competition. also held true for marketing messag n NEW RESEARCH COMPETITION Deadline for entries is set for June es. Could consumers’ beliefs about The International Finance Cor 30, 2006. a product affect how well it worked? poration (IFC) and the Financial In a paper recently published in the Times (FT) have launched their first n NEW CENTER TACKLES GLOBAL ISSUES Journal of Marketing Research, the annual research paper competition The University of Warwick’s Centre researchers found that factors such to promote private sector develop for the Study of Globalisation and as price and marketing message can ment. The competition, “Business Regionalisation has been awarded actually increase or decrease a prod and Development: The Private $5 million by the European Com uct’s effectiveness. Path to Prosperity,” invites research mission to create an international “It has been highly documented papers targeted to the international network of more than 250 scholars. that consumers believe that higher financial community. “A healthy The network will provide research to prices tend to reflect higher quality,” private sector is a critical element of help governments devise responses says Carmon. “We wanted to see if long-term poverty reduction,” says to global problems such as terror consumers’ seemingly baseless beliefs Thomas Davenport, manager of ism, disease control, gender inequal about a product may be self-fulfilling.” IFC’s Foreign Investment Advisory ity, and the environment. The In a preliminary study, the Service unit. “Exciting new para Network on Global Governance, researchers gave 38 members of digms are emerging, and we hope Regionalisation and Regulation a fitness center an energy drink, this competition will help bring (GARNET) will be directed by War Twinlab Ultra Fuel, before their them to light.” Awards include wick professor Richard Higgott. Its workouts. One group of participants one Gold Award of $30,000, two advisory board will be chaired by was told the drink was purchased at Silver Awards of $15,000 each, and Pascal Lamy, director-general elect its regular price of $2.89; another three Bronze Awards of $10,000 of the World Trade Organization. group was told that the regular price

54 BizEd May/june 2006 “Marketing may be more powerful than companies realize.” —Ziv Carmon

this experiment, before consum trol group. In the second, students est placebo effects may make false ing the drink and solving a series of who read the marketing message claims legitimate,” the researchers puzzles, a group of students read solved more puzzles correctly than write in their paper. a marketing message that included those who did not. In the future, Carmon and his the statement, “drinks such as SoBe Such studies as these could change colleagues plan to study whether the have been shown to improve mental the way companies view their market country where a product is said to functioning, resulting in improved ing and discounting practices, says be made may also produce a placebo performance on tasks such as solving Carmon. “Companies need to think effect; or whether an unbranded, puzzles.” A control group solved the more carefully about whether price but otherwise identical, medication puzzles without consuming the drink discounts are the best way to pro may result in less effective healing. In or reading the message. mote sales,” he says. Because of the each of these situations, says Carmon, In both cases, researchers found placebo effect, discounts may actually “marketing may be more powerful that the placebo effect holds true for make a product less effective. than companies realize.” marketing as well as medicine. In At the same time, the study also To read the entire study by Shiv, the first experiment, students who raises interesting ethical dilemmas for Carmon, and Ariely, “Placebo Effects believed they were paying full price marketers, who could use the placebo of Marketing Actions: Consumers solved more puzzles correctly than effect to make false claims or raise the May Get What They Pay For,” visit either those who believed they were price simply to improve its effective Carmon’s Web site at faculty.insead. paying a discounted price or the con ness in the marketplace. “Even mod edu/carmon/cv.html. ■z

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BizEd May/june 2006 55 Yo ur Turn By Melvin T. Stith

Going Global? a piecemeal basis is not enough to York recently reported that the trad- keep up with the needs of global ing and investment value of shares Go All the Way business. Business schools need to of foreign companies surpassed $1 integrate globalization throughout trillion in 2005; and that, according On a recent trip to the Pudong District in their curricula to immerse students to the Wall Street Journal, nine out Shanghai, I walked down the side- in the global economy and prepare of every ten dollars raised through walks eyeing signs from Citigroup, them for survival and success. new company listings was done in AT&T, and Morgan Stanley, and I At Syracuse University’s Whitman London or Luxembourg instead of was struck by the sheer normalcy School of Management in upstate New York. of their presence in a market that New York, for example, one-third of Stdents should know there are once was closed to Western busi- our MBA students now work during six times as many consumers in ness. I realized that, unlike business the summer as interns in cities such India, China, and Malaysia as there students ten years ago, our students as Madrid, Cape Town, Singapore, are in the United States. They need today are more likely to land their Cyprus, Shanghai, and Tokyo. This to know that, with this inevitable first jobs in Shanghai or Dubai than year, a company in Cyprus even change in purchasing power, corpo- in New York or London. Those asked us if one of our students could rations will rely on them to under- billboards are just one indication stay in her internship through the stand those markets and know what of how global the business world fall semester, while continuing her it takes to sell to those customers. has become. MBA program long distance. We But students will only come to this But as business schools, are we were happy to accommodate the understanding if we present these adapting our programs aggressively request, and we hope for—and even realities to them in every course enough to reflect these changes expect—more like it. they take. in the industry? I don’t think so. Even so, as we discussed the Invite guest speakers with globaliza- Many schools are introducing a redesign of our own MBA program, tion in mind. Our students must have course or study focus in globaliza- Whitman faculty and administrators face-to-face interactions with execu- tion, announcing a partnership, or realized that we, too, could go fur- tives who know business on a global adding a student exchange. But to a ther in our attention to globalization. scale. It is much different merely to large extent, business school admin- From the cases used, to the speakers read about offshoring and outsourc- istrators and faculty are reluctant to invited, to the topics discussed, to the ing, for example, than it is to speak make globalization a fundamental travel experiences offered, to the stu- to an executive from, say, JPMor- part of their programs. dents accepted, we decided that we gan, a company that has announced That hesitation, to some extent, needed to reevaluate our programs plans to have 30 percent of its global is understandable. Global programs and integrate all, not just a few, of workforce in India by the end of require a significant commitment the following initiatives to view every 2007. What are the implications of financial and human resources. aspect of our programs through a of this trend? What is the cultural Schools must have faculty willing to global perspective: impact of taking a customer service travel and teach abroad. They are Make every course global. We decided phone call in India from a consumer under great pressure to allocate just that we first must ensure all of our in the United States? Students must the right resources, make just the courses incorporate a global view- be given the opportunity to learn right curricular changes, and form point. Whether our students are answers to these questions from a just the right partnerships. Under studying entrepreneurship, market- person, not a textbook. such pressure, schools often adopt a ing, or accounting, they should Use technology to bring the world to the “little-bit-at-a-time” mentality in the know how that topic relates to the classroom. We know that executives belief that small steps are better than world at large. They should know cannot always make a personal visit no steps at all. that the New York Stock Exchange to our campuses to speak to our stu- Such a mentality may have is branching out overseas, seeking dents. We need to maximize our use worked a few years ago, but not to list foreign companies to capture of video conferencing to bring exec- today. Adopting globalization on new markets; that the Bank of New utives into the classroom from all

56 BizEd May/june 2006 Globalization must be part of a business school’s mindset, not just its course catalog.

over the world, to give our our students’ global devel- students a personal tour of a opment after graduation. As new Volvo plan in Shanghai a university, we believe we or a new bank in Taipei. also should help the compa- Offer a wide selection of global nies who hire our students experiences—in non-English- with any visa arrangements speaking countries. We need or problems. We also should to send students not just to continue to be a source of England or Australia, but to information and support for Asia, Africa, Latin America, our U.S. students who work and the Middle East, where overseas or for our interna- they can immerse themselves tional students who stay to in cultures different from work in the U.S. their own. At Whitman, for I’m sure that most busi- example, we plan to take ness schools are doing one, more students abroad in or some, of these initia- study groups. We recently tives. But how many are took our executive and full- doing them all? Integration time MBAs for a weeklong of comprehensive, across- tour of China, where they the-board global initiatives were given an insider’s should be the norm at all look at Chinese companies business schools, especially and the Shanghai Stock if we want to make sure our Exchange. current MBA students are Gather a diverse student body. the future leaders and driv- Attention to admissions is Melvin T. Stith ers of this global economy. crucial when it comes to Fifty or even 20 years giving our students global experi- Travels of a T-Shirt in a Global Econ- ago, it was unimaginable that Har- ences from the moment they step omy by Pietra Rivoli. Reading the vard would extend its reach beyond onto campus. To this end, Whit- book as a cohort gives our students Cambridge, Massachusetts, to offer man strives to admit a student yet another opportunity to explore programs in Beijing and Hong body comprising approximately 50 their own roles in globalization. Kong, or that Wharton would look percent non-U.S. citizens, from Put international partnerships in per- beyond Philadelphia, Pennsylvania, countries such as India, China, Tai- spective. Many business schools are to set up campuses in Tokyo and wan, Colombia, Ukraine, Korea, seeking out partnerships with their Singapore. But today, both sce- Thailand, Germany, Kazakhstan, international peers. Indeed, for narios are realities, as many markets and Holland. smaller schools, partnerships may open themselves to Western busi- Seek out new opportunities to offer seem to be the only way to include ness education, just as they did to global exposure. We don’t need to stay a global component. But such Western business. within the boundaries of a course partnerships alone do not make a Globalization must be part of or exchange program to infuse glo- business school a “global” business a business school’s mindset, not balization into our programs. We school. Such partnerships are only just its course catalog. Like busi- can look for other ways to make it one piece of a larger global strategy ness itself, business schools must be a part of our campus culture. For and outlook. global, in mind and in deed. ■z example, not only do we integrate Don’t stop “thinking global” at gradu- international content into most of ation. As we redesign our MBA pro- Melvin T. Stith is the dean of the Martin our courses, but we also require all gram at Whitman, we are also look- J. Whitman School of Management at Whitman MBA students to read ing at what we can do to support Syracuse University in New York.

BizEd May/june 2006 57 Bookshelf

“Whoever said there is no poignancy or that younger managers many Ph.D. recipients are ill- subtlety in finance?” ask Karen Ber- have different perspec- prepared either to teach or man and Joe Knight in Financial tives, priorities, and take jobs in industry settings; Intelligence, a book designed to help problems. So they women and minorities are nonfinance types through the com- pooled their wisdom underrepresented; and attrition plexities of account- and approached the topic from by doctoral candidates is alarmingly ing statements. Their opposite viewpoints, hammering out high. Yet through it all, the high main premise is that their main points during long walks purpose of doctoral education shines any manager needs through 100 miles of varied terrain. through: “to educate and prepare to understand how The result is both thoughtful and those to whom we can entrust the accountants arrive at charming as they deconstruct what vigor, quality, and integrity of the key numbers—how a leader must know about people, field ... ‘stewards of the discipline.’” they make assump- purpose, passion, performance, In a powerful way, the book is both tions about revenue, and other leadership practices. In troubling and hopeful. (Jossey-Bass, how they estimate the chapter about people, Sander $50) depreciation, where says that a leader must be “the best they assign certain costs. Using easy- motivator, the best listener, the best Companies that succeed particularly well to-understand language and provid- facilitator, and the best identifier of have distinct characteristics in coming clear definitions, the authors best ideas.” Jonathon adds that lead- mon, and David G. Thomson has walk the reader through the income ers must be aware “that employees done some sleuthing to uncover statement, the balance sheet, ratios, value their lives as family members, them. In Blueprint to a Billion, he return on investment, and all the parents, and friends.” As business answers his own question: “What is attendant calculations. The book is adapts its paradigm to accommodate the quantifiable suc- not intended for the MBA with a a changing workforce, books like cess pattern for finance major, but for the top-level this will help managers find their America’s highest- manager who really wants to under- way. (AMACOM, $24.95) growth companies?” stand the business. “You don’t need Analyzing Google, to be a rocket scientist,” Berman If you could start from scratch, how would Microsoft, Harley- and Knight insist. “The math is easy. you design your doctoral program? Davidson, and doz- And calculators are cheap.” And the That’s the question at the heart of ens of other compa- book makes sense. (Harvard Busi- Envisioning the Future of Doctoral nies, Thomson ness School Press, $24.95) Education, produced by the Carne- isolates the essential gie Foundation for the Advancement steps to exponential Few books about leadership would con- of Teaching and edited by Chris M. growth. Surprisingly, he finds that tain this sentence: “Leadership is Golde and George E. Walker. They billionaire corporations can exist in the closest thing we have in our gather 16 essays by senior faculty either emerging or mature markets. economy to applied philosophy.” members working in a range of Some are “shapers of a new world,” Yet that’s one of the insights offered arts and sciences fields. While the such as eBay; some are niche by playwright and Zen master authors inevitably offer shapers, such as Starbucks; Jonathon A. Flaum, who co-wrote critiques of their own others are category killers, The 100-Mile Walk with his father, fields, what emerges is such as Home Depot. How Sander Flaum—an old-school mar- a clear-eyed look at the these companies enact their keting expert and founder of the problems that plague value propositions and how Leadership Forum at the Fordham doctoral education as they capitalize on their lead- Graduate School of Business. The a whole—including ership skills and customer Flaums realized that today’s busi- in business schools. relations contribute to their ness leaders don’t always hear the Common themes phenomenal growth. As advice offered by “old guys”—and include the fact that Thomson notes, “The odds

58 BizEd May/june 2006 “Silos—and the turf wars they enable—devastate organizations.” —Patrick Lencioni, Silos, Politics and Turf Wars

of turning an idea into a billion-dol- in Leadership, edited by William E. son for being lar business...are one in 20,000!” Rosenbach and Robert L. Taylor. and putting His book seeks to shorten the odds Included are essays from a veritable it in writing. considerably. (Wiley, $27.95) who’s who of leadership experts: This requires John Gardner, Warren Bennis, Dan- developing Who better than Jeffrey Pfeffer to take on iel Goleman, Robert Goffee, Jim an overarch- the sprawling industry of manage- Collins, and many more. The contri- ing thematic ment advice books? In Hard Facts, butions have been reprinted from a goal, a set of Dangerous Half-Truths & wide variety of sources and defining objectives, a set of ongo- Total Nonsense, he and co- time periods—Gardner’s is ing standard operating objectives, author Robert I. Sutton 40 years old—and showcase and the metrics to test them. When debate some of the widely a diversity of approaches. everyone in the organization under- held beliefs that fuel man- “The differences in leader- stands the common goals, Lencioni agement practices today, ship research methodology believes, co-workers unite and silos from “best organizations and conclusions, as well as disappear. (Jossey-Bass, $22.95) have the best people” to the absence of consensus on “change or die.” True? what leadership really is...are Quick Looks Maybe not. Instead of a reflection of the diversity jumping on current fads, of people, organizations, Sometimes recent graduates aren’t executives need to rely on evidence- and cultures,” the editors write. The prepared to handle tricky work situ- based management, which requires final result is a thought-provoking ations. What should they do if they them to examine their own orga- book full of distilled wisdom. (West- discover their new product is defec- nizations to determine what is and view Press, $33) tive, if a co-worker gets drunk while isn’t working for them. This means meeting with clients, or if they’re setting aside cherished but unproven Academics are accustomed to speaking of pressured to provide sexual favors ideologies, no longer clinging to “silos of discipline,” and they fre- for top executives? In Reality Sales, practices that worked before—or quently puzzle over how to offer Ohio University professors Jane Z. worked somewhere else—and not a more integrated education. But Sojka and Dawn R. Deeter-Schmelz slavishly copying the strategies of silos exist in the business world, offer 21 role-playing situations that another company that seems to be too, and can hamper effectiveness cover ethical dilemmas and uncom- doing well. It also means not being just as much. “Silos—and the turf fortable situations. Detailed teach- dazzled by the latest gurus with wars they enable—devastate organi- ing notes guide instructors through big ideas. Pfeffer and Sutton name zations,” writes Patrick Lencioni in students’ possible responses, the names and don’t entirely exempt Silos, Politics and Turf Wars. “They consequences of each action, and themselves: “Those of us who hawk waste resources, kill productivity, ongoing discussions. (Atomic Dog business knowledge need to come and jeopardize the achievement of Publishing, $12.95) clean. We need to deny that we have goals.” He presents an engross- magic answers.” Rife with examples, ing fable of a young consultant Inspirational speeches delivered at rich with commentary, this who discovers how to Brigham Young University form the is a terrific book about help organizations tear heart of Business with Integrity. Busi- every manager’s struggle to down the walls between ness leaders and academicians offer improve. (Harvard Business departments. One key their thoughts on living a life of pur- School Press, $27.50) is to have everyone pull pose, faith, integrity, character, and together as if they are good conscience. Heavily influenced The ongoing debate about what in crisis mode, fighting by the school’s Mormon outlook, constitutes a good leader for survival. Another the book offers one path through gets an intriguing presenta- key is summing up the the tricky thicket of business—and tion in Contemporary Issues company’s broad rea- life—today. (BYU Press, $20) ■z

BizEd May/June 2006 59 Spotlight

University of Ottawa marketing students stage a dramatic photo-op at a press conference to launch their project, “Making Niger Our Business,” where they threw pieces of orange fabric into the air. Orange is the color of Niger’s flag and a symbol of famine.

fees and a percentage of a night’s proceeds to the project. They held “positive demonstrations” in front of local media offices, where they held up signs that thanked their donors. Jour- nalists walking into the buildings not Marketing Makes a Difference only noticed their signs; they came out to cover the story. Undergrads at the University of Ottawa work to end famine in Niger. So far, Laflamme’s students have collected $250,000 in hospital The famine in the African nation of Niger, tion on their ideas. The students equipment and raised more than caused last summer by a locust collectively chose each group’s best $25,000. He expects them to raise plague and drought, received little idea; each group was then respon- $40,000 more before the end of the attention in the press. But the disas- sible for putting its idea into play. school year. In June, he and five stu- ter made a strong impression on “From a marketing standpoint, dent representatives, chosen by their Guy Laflamme, a marketing profes- it’s a big challenge to raise funds peers, will travel to Niger to oversee sor at the University of Ottawa’s for a cause people know very little the distribution of the equipment School of Management in Ontario, about, that affects and funds, includ- Canada. What better way to address a country 5,000 “Students can learn to ing the construction an underserved problem, he kilometers away,” of water wells and thought, than to ask his undergrad- says Laflamme. To create solutions that will latrines near three uate marketing students to think of further motivate his schools in the city of ways to solve it? students, Laflamme have sustainable impact.” Tahoua. They also will The project, called “Making Niger went one step fur- – Guy Laflamme work with the Uni- Our Business,” required considerable ther: He donated his versity of Niamey in planning during the summer, when salary for teaching both courses as Niger’s capital to develop campaigns Laflamme had to establish relation- their startup capital. to educate the public about topics ships with Nana Aicha Foumakoye, Most students, says Laflamme, such as nutrition and birth control. Niger’s ambassador to Canada, and spent close to 100 hours working on “I hope to repeat the Niger the appropriate NGOs. He also had the project over the semester. They experience year after year with my to assure the university that the proj- created a Web site and an imagina- undergraduate students. I also invite ect’s public activities would reflect tive 30-second television spot that other universities to obtain the tem- the school’s message and mission. aired on local television. They also plate for the Niger project,” says In the fall of 2005, Laflamme recruited other students to create Laflamme. “Students can learn to separated the 150 students in his a “human chain” that spanned the create solutions that will have sus- marketing strategy and consumer 1.2 kilometers between the center of tainable impact.” behavior courses into small groups. campus and the Embassy of Niger. For information on “Making He then challenged each group to Their two-hour vigil received a Niger Our Business”—and to see devise innovative marketing con- wealth of coverage by local media. the students’ 30-second television cepts. At the end of October, each Students also formed agreements ad—visit www.makingnigerour group gave a five-minute presenta- with local pubs to donate entrance business.com. ■z

64 BizEd May/june 2006