November/December 2011 November/December Ed . w

What’s Past. What’s Biz What’s No What’s

What’s Next. What’s Years

BizEd • november/December 2011 • Volume X, issue 6 The University of Texas at DallasAnnounces The Naveen Jindal connovember/decembertents 2011 • Volume X, issue 6 School of Management Features Named to honor its distinguished alumnus, Naveen Jindal MBA’92, Delhi, India Ten on Ten Ten longtime deans gaze back on the The University of Texas at Dallas is proud to celebrate the naming of 22 last decade of management educa- the Naveen Jindal School of Management, and to express the appreciation tion—and forward to the next one—as of its students and faculty for support aimed at enhancing the excellence they discuss how business schools have of one of the premier business schools in the U.S. changed, might change, and should change in the 21st century. Through Mr. Jindal’s generosity, the Naveen Jindal School of Management will continue to build on widening recognition of its excellence. Tests of Time A sampling of some of the programs • Full-Time MBA, 40th overall and 17th among public university 44 and initiatives that were launched programs in the U.S., U.S. News & World Report a decade ago—what worked, what didn’t, and what these schools are th th • Professional (Part-Time) MBA, 36 overall and 20 among planning for the future. U.S. public university programs, U.S. News & World Report nd Then and Now • Executive MBA, 22 among U.S.-based executive programs, Financial Times A “by the numbers” look at the way 52 business schools have evolved over • Faculty research productivity, 22nd worldwide, Financial Times the past ten years. Globalization is the major trend, but schools are also altering their offerings in subtle ways.

Big Questions AACSB’s John Fernandes outlines 58 the challenges facing business schools in the next ten years—from finding the best faculty to designing the right alliances—and offers potential solutions.

58

74 Departments Advertising paid for by members of the Naveen Jindal School of Management Advisory Council and the UT Dallas Development Board. 6 From the Editors 66 Research 84 Classifieds 8 Calendar 74 Technology 88 Idea Exchange 10 Headlines 82 Bookshelf

BizEd November/December 2011 1 from the editors

Ten Years—No Robots

en years as a print publication is something to be proud of. But when I recently read an article in The New York Times, suddenly BizEd’s tenth anniversary seemed even more remarkable—because we’ve done it all without robots. Well, not robots, exactly, but close. The NYT article profiled Narrative Sci- Tence, a company that has developed artificial intelligence that can “write” summaries of anything from a football game to the release of a financial report. Its software produces articles good enough for newspapers to print, at less than US$10 per 500 words. Many n

so media outlets find that price too good to pass up. Today, the software can produce only r e

nd simple summaries. But a company founder told the NYT that in five years, he expected “computer journalism” to produce an article good enough to win a Pulitzer Prize. Given the rate of technological advancement, his prediction might not be far off. Raquita He Raquita But then I look at how BizEd has developed over the past ten years. We’ve talked with hundreds of educators and executives about challenges they’ve faced as they designed courses and led companies. We’ve shared their stories and hard-earned advice in our pages, so that readers can consider their ideas for their own schools. It’s hard to believe that a “computer journalist” could do that. Articles in this issue reflect on trends we’ve covered over the last ten years of business education. In “Ten on Ten,” ten deans who have been leading business schools for ten years or more contribute their insights on issues shaping this industry. “Then and Now” offers a statistical perspective of the decade, while “Tests of Time” checks in with schools celebrat- ing their own milestones. Finally, AACSB International’s CEO John Fernandes discusses the “Big Questions” that the industry must face—and answer—in the years to come. When the late Anne Graham, the original executive editor of BizEd, hired Sharon Shinn and me to be its co-editors, the magazine did not yet have a name or following. But it had Anne’s vision—she wanted this publication to be a source of information and a forum of ideas for business educators. We’ve worked to live up to that vision ever since. We celebrate BizEd’s first ten years, as well as the accomplishments of the business schools featured in its pages. We are excited to see—and be a part of—the future of this industry. We know there will be robots. They just won’t be writing BizEd. es g ma I tBox/Glow tBox/Glow Ar

During BizEd’s first year of publication, we featured the insights of educators, CEOs, and thought leaders. Throughout this issue, we’ve included some of the more pro- Words phetic or profound comments they made about business education ten years ago. of WISDOM

6 November/December 2011 BizEd headlines 8 HUNDRED MILLION Richard Irwin, head of student recruitment for PwC, says, “We have long believed that employer-led degrees have a critical role in building the skills of students who know what they want out of a career.” PENNIES Henley will offer 40 places every year, with the first group of students due to start in September 2012. n The London School of Business and Finance also is promising each student in its new undergrad- FOR YOUR s

e uate program a full-time position within six months g of graduation. While the LSBF’s Trium program has not been launched with a specific business collabo- /Glow Ima /Glow s THOUGHTS. rator, the school is working in concert with various

Somo institutions. Trium’s bachelor of arts degree will be validated by one of the school’s partner universities, the University of Central Lancashire in the U.K. or B-School Guarantees the Grenoble Graduate School of Business in France. More important, Trium students will complete As competition among business schools grows between 35 percent and 50 percent of the course- increasingly fierce, a number of leading institutions work and exams needed to achieve professional have started to offer ironclad guarantees to their certification from the Chartered Institute of Market- graduates: The Haas School at UC Berkeley and The ing (CIM), the Association of Chartered Certified Wharton School of the University of Pennsylvania, for instance, now extend Two business schools in the U.K. are to alums the opportunity for free, life- time education. Harvard guaranteeing their graduates jobs. guarantees b-school admission to the GIVE US YOUR BEST PLAN TO TURN ONE OR MORE OF 20 WINNING undergraduates who participate in its 2+2 program, Accountants (ACCA), or the Chartered Institute of IDEAS TO IMPROVE MANAGEMENT EDUCATION INTO REALITY — aimed at high-achieving juniors who want to work for Management Accountants (CIMA). Students also AND YOU COULD GET A SHARE OF 8 MILLION DOLLARS. two years between graduating and attending business will participate in a graduate development program classes. to hone their interpersonal and professional skills. The Ideas to Innovation [i2i] Challenge. Now two business schools in the U.K. are upping To qualify for the job guarantee, Trium students It’s just another way the GMAC MET Fund is helping to support the future of graduate the ante by guaranteeing their graduates jobs. must achieve a minimum 2:2 classification degree management education. Submit your proposal by December 16, and you could widen your impact n Henley Business School at the University of Read- (roughly a B average). It is expected that students will ing is promising students jobs through a new initiative complete their studies within five years. from thought leader to change agent by helping improve management education and access all it has launched with PwC and the Institute of Char- Says James Kirkbride, vice rector for the school, “Our around the world. See the winning ideas and get proposal requirements at gmac.com/metfund1. tered Accountants in England and Wales (ICAEW). Trium program will give students an academic qualifica- Students who enroll in the four-year bachelor’s-level tion, a pathway to a professional qualification, and the ONLY UNTIL DECEMBER 16TH. accounting and business program will work with practical skills to ready them for the workplace. In the PwC’s assurance team on client projects during three unlikely event that they are not successful in their job paid internships in the last three years of the program. searches, they will receive a £2,500 partial refund on their Not only will they be honing their work skills during fees.” this time, they will be simultaneously studying for the While no particular role, salary, employer, or loca- Associate Chartered Accountant (ACA) certification, the tion is guaranteed, Kirkbride notes, the school’s Cor- professional qualification of the ICAEW. They should porate Careers team helps secure students jobs they obtain the degree and the certification in five years, truly want. The team “advertises internally to students, instead of the traditional six, and if they successfully short-lists candidates, and carries out preliminary inter- pass their exams and perform well in work placements, views and psychometric testing so students have the they are guaranteed jobs with PwC after graduation. best possible opportunity to start their careers.”

10 November/December 2011 BizEd ©2011 Graduate Management Admission Council® (GMAC®). All rights reserved. The GMAC logo is a trademark, and GMAC® and Graduate Management Admission Council® are registered trademarks of the Graduate Management Admission Council in the United States and other countries.

8479_GMAC_Pennies_BizEd_Snipe_Nov.indd 1 9/20/11 2:53 PM headlines

Business Schools Improve Sustainability

The number of business schools teaching MBA students to examine the social, environmental, and ethical impacts of business decisions continues to grow, spurred by the global economic downturn, ris- ing student demand, and increased faculty willingness to explore those issues. Those are conclusions drawn from the Aspen Institute’s most recent edition of “Beyond Grey Pinstripes,” its biennial survey and alter- native ranking of business schools, which was released in late September. The survey indicates that there has been a striking According to the survey’s ranking system, this year’s increase in content on social, ethical, and environmen- top ten schools are Stanford Graduate School of Busi- tal issues in required courses such as finance (a 38 per- ness in California; ’s Schulich School of cent increase in the number of relevant core courses); Business in Toronto, Ontario; IE University in Madrid, marketing (41 percent); accounting (22 percent); opera- Spain; Notre Dame’s Mendoza College of Business in tions (57 percent); and IT /MIS (22 percent). There Indiana; Yale School of Management in New Haven, also has been an increase in the percentage of schools Connecticut; Northwestern University’s Kellogg School requiring students to take a course dedicated to busi- of Management in Evanston, Illinois; the University of ness and society issues. In 2001, that figure was 34 per- Michigan’s Ross School of Business in Ann Arbor; Cor- cent; in 2011, it’s 79 percent. Social entrepreneurship nell University’s Johnson Graduate School of Manage- courses are also gaining far more prominence across ment in Ithaca, New York; the Kenan-Flagler Business MBA programs. Between 2007 and 2011, there was School at the University of North Carolina in Chapel a 60 percent increase in the number of these courses Hill; and the Haas School of Business at the University being offered internationally. of California in Berkeley.

GMAC Charts Application Trends

Applications to full-time graduate-level business pro- reported declines) than the rest of the world (62 percent). grams are generally dropping, but there are bright spots At the same time, specialized master’s programs among specialized programs, according to the 2011 Appli- reported increases in applications. Eighty-three percent cation Trends Survey produced by the Graduate Manage- of master’s of finance programs saw increases, as well ment Admission Council. as 69 percent of master’s programs in management and Among schools participating in the survey, roughly 51 percent of accounting programs. As another positive two-thirds (67 percent) of full-time two-year MBA pro- sign, all types of programs reported that the quality of grams reported declines in applications from the previous applicants and their academic credentials were higher in year. This downward trend began in 2009. Similarly, 57 2011 than in 2010. percent of one-year full-time MBA programs also received More information, and a link to the full report, can fewer applications than last year. The trend was less be found at www.gmac.com/gmac/researchandtrends/ pronounced in the U.S. (where 49 percent of programs surveyreports/applicationtrendssurvey/.

12 November/December 2011 BizEd The GMAT® RepoRT

European Universities Look Forward

The European University Association (EUA) has published a political declara- tion summarizing its recent annual con- ference, which was held at Denmark’s and focused on the Let Data Drive Your Innovation role of universities in developing talent GMAC market intelligence provides insight into industry in Europe. The declaration underscores trends to inform your strategic vision. It’s one of the tools how important it is for the EU to invest in our suite of GMAC products and services that help you in universities so they can contribute to achieve your goals—year after year after year. the EU’s “smart, sustainable, and inclu- sive growth” goals through education, Recruit for Global Diversity research, and innovation. “Every Euro The number of GMAT exams taken by non-US citizens (141,616) has spent at the European level on universi- surpassed those taken by US citizens for the third consecutive year. ties will add value by bringing people Asia Pacific–41% together, pooling knowledge, and creating Central Asia–20% synergies that could not be achieved at the Europe–17% national level alone,” the document notes. Middle East/Africa–11% For more information, visit www. Latin America–6% eua.be. Canada–5%

Source: 258,192 exams taken in testing year ending June 30, 2011.

Honors for BizEd Meet Demand for Specialized Programs A majority of master-level programs reported an increase in BizEd magazine took home three awards applications in 2011. Percentage of programs seeing growth:

in the 2011 Charlie Awards competition g g sponsored by the Florida Magazine Asso- g g g ciation. Co-editor Sharon Shinn won g g a Charlie, equivalent to a gold award, g g for best editorial for “When the Light Bulb Goes On,” which appeared 83% 69% 51% in the September/October 2010 Master of Master in Master of Finance Management Accounting issue. Co-editor Tricia Bisoux won a GMAC 2011 Application Trends Survey change in volume from 2010. silver award in the same category for Source: “Don’t Tweet for Me, North Korea,” published in November/December Learn more about the competitive advantage that GMAC market 2010. Shinn also won a silver award intelligence offers your school at gmac.com/gmatreport. for best feature for “The Holistic

Leader,” which appeared in the May/ © 2011 Graduate Management Admission Council® (GMAC®). All rights reserved. The GMAC logo is June 2010 issue. All awards were in the a trademark and GMAC®, GMAT®, and Graduate Management Admission Council® are registered association division of the competition, trademarks of the Graduate Management Admission Council in the United States and other countries. which honors excellence among Florida- based publications.

BizEd November/December 2011 13 headlines

short takes

New Appointments n Audencia Group, the Risk, Strategy, and Financial secure information systems n Roy (“Chip”) Wiggins has France-based higher educa- Innovation (RiskFin). Lewis this spring. The 14-month been named the new Dean of tion establishment formed by is the Madison S. Wiggin- multidisciplinary program Business and the McCallum Audencia Nantes School of ton Professor of Finance at will draw on the expertise Graduate School at Bentley Management, the Ecole Atlan- Vanderbilt University’s Owen of faculty members within University in Waltham, Mas- tique de Commerce, and Sci- Graduate School of Manage- the School of Management, sachusetts. Wiggins most encesCom, has announced a ment in Nashville, Tennessee. School of Public Policy, and recently served as chair of reorganization for the 2011– School of Engineering. Bentley’s finance department 2012 academic year, which n Cal State Ful- and director of the Bentley has resulted in a number of lerton’s Mihaylo n The W.P. Carey School of Microfinance Initiative. He new academic posts. The role College of Business at Arizona State succeeds Michael J. Page, of dean for the group will be Business and University in Tempe is offer- who was appointed university filled by Frank Vidal, currently Economics has ing a new BBA with a concen- provost earlier this year. dean of Audencia Nantes named Stephen P. D’Arcy the tration in public service and School of Management. Jean first holder of the Robitaille public policy. It is designed n Stafford Johnson has Charroin becomes director of Chair in Risk and Insurance. for those who want to work in been named the interim dean Audencia Nantes; he also will D’Arcy has served for 37 the public, nonprofit, and pri- for the Williams College of share vice-dean responsibili- years as professor of finance vate sectors, and it combines Business at Xavier University ties with Christophe Germain. at the University of Illinois at classes from the Carey School in Cincinnati, Ohio. John- Valérie Claude-Gaudillat now Urbana-Champaign. with classes from ASU’s Col- son, a professor of finance, becomes director of Sci- lege of Public Programs. began his tenure on July 1. encesCom, and André Sob­ n Mays Business School at He replaces Ali Malekzadeh, czak becomes research direc- Texas A&M University in Col- n The Simon Graduate who has become the Edger- tor for the Audencia Group. lege Station has announced School of Business at the ley Family Dean of Business two appointments: Kondoru University of Rochester in Administration at Kansas n In August, Eugene W. (Shiva) Sivaramakrishan has New York is introducing a State University in Manhattan. Anderson became the new been named the inaugural hold- full-time master of science in dean of the University of er of the Peggy Pitman Mays business administration with n Next July, James A. Miami’s School of Business Eminent Scholar Chair, and a concentration in medical Goodrich will take office as Administration in Florida. Bradley R. Kirkman has been management. The program is the new dean of the College He was previously senior named the Foreman R. & Ruby designed for members of the of Business and Economics associate dean for academic Bennett Chair in Business. healthcare field who are not at California State University affairs at the University of practicing medicine but need in Los Angeles. Goodrich Michigan’s Ross School of New Programs to master business and ana- was previously dean and vice Business in Ann Arbor. n George lytical tools. The school also president at Alliant University Mason Uni- runs a part-time medical man- in San Diego, California. He n Earlier this year, Craig M. versity’s agement master’s program also has served as dean Lewis was chosen by the School of aimed at working profession- at the Atkinson Graduate U.S. Securities and Exchange Management als in the healthcare sector. School of Management at Commission to serve as its in Fairfax, Willamette University in new chief economist and Virginia, is launching a master n The College of Business Salem, Oregon. Director of the Division of of science in management of Administration at the

14 November/December 2011 BizEd headlines

short takes

University of Tennessee in to assess mark-to-model val- tive education programs held leadership activities as well Knoxville has joined with the ues, measure brand goodwill, on its campus in , as personal-branding experi- UT Health Science Center to and price acquisition targets. including a new Asia section ences, résumé workshops, launch a dual degree program Students in the 12-month that has been added to its mock job interviews, and leading to a joint MBA and program will be prepared Global EMBA program. Half business communications Doctor of Pharmacy. The five- for two of three levels of the of the 17-month program classes. The evening MBA year program consists of 172 Chartered Financial Analyst will be held in Singapore in program is adding more lead- hours of coursework, includ- exams, as well as the Certi- three-day modules; during ership components and sup- ing a strong emphasis on fied Public Accountant exam. the other half of the program, plementing classroom work medicine in the PharmD pro- participants will have a chance with podcasts, simulations, gram and a focus on innova- n The College of Business to spend time on INSEAD’s and multimedia tools. tion, analytics, marketing, and at the University of Texas campuses in Fontainebleau, supply chain management in at San Antonio has created France, and , UAE. n This fall, the Anderson the MBA program. a new BBA degree in sport, In addition, INSEAD is intro- School of Management at event, and tourism manage- ducing an executive master’s the University of California n This August, Thunderbird ment. The new degree will degree in clinical approaches in Los Angeles launched a School of Global Manage- prepare students for careers to management, and it is new curriculum for its full-time ment in Glendale, Arizona, in sport management and partnering with the Sorbonne MBA. The new curriculum is launched a customized global marketing, event manage- University Panthéon-Assas law built around four leadership program for New ment, travel and tourism, and school in France to introduce components: Zealand executives. To develop destination marketing. an LL.M. to the Asia campus. a customizable the program, Thunderbird core; tracks that teamed with the University of n A new program that New Curricula enable students Auckland, New Zealand Trade explores the development n The W.P. Carey School of to deepen their and Enterprise, and the ICE- of impact investing is being Business at Arizona State knowledge in mar- HOUSE, a business growth launched by the Center for the University in Tempe has keting, finance, or center and incubator in Advancement of Social Entre- extensively updated its MBA consulting; spe- New Zealand. The inaugural preneurship (CASE) at Duke curriculum, focusing on the cialized courses 12-month program will empha- University’s Fuqua School three key areas of leadership, on leadership and communica- size a collaborative, cross-bor- of Business in Durham, North globalization, and critical tions; and team-based man- der curriculum that takes par- Carolina. As part of the initia- thinking. The revised EMBA agement projects conducted ticipants to Auckland, Beijing, tive, faculty members are writ- program will open and close over six months in the U.S. and Shanghai, and Silicon Valley. ing new teaching cases and, in with 360-degree peer reviews globally. In addition, students collaboration with the Kenan- and also feature customized will have the flexibility to design n Vanderbilt University’s Flagler Business School at the professional development their classes in a sequence Owen Graduate School of University of North Carolina in plans for each student, indi- that best accommodates their Management in Nashville, Chapel Hill, teaching a new vidualized meetings with an career objectives and to earn Tennessee, has created a course on impact investing in executive coach, leadership certifications in areas such new master of accountancy spring 2012. skills workshops, and other as real estate, entertainment, program. The MAcc Valuation components. In the two-year entrepreneurship, global man- program, which launches next n INSEAD has announced full-time MBA program, stu- agement, healthcare, sustain- August, will prepare students several changes to execu- dents will also participate in ability, or technology leadership.

16 November/December 2011 BizEd headlines BE MORE THAN A LEADER. BE AN INFLUENTIAL short takes LEADER. n The Edwards School of Business Indian Institute of Management at the University of Saskatchewan schools. Under the five-year agree- in Canada will be launching a rede- ment between Kelley and IIM Luck­ signed MBA for this academic year. now, which formalizes and expands The new curriculum retains its core the existing relationship between the content but has been streamlined schools, the partners will create a into a 42-credit cohort model. The joint master’s program in business structural changes will move the analytics and global strategy as part > Don’t settle for just success in Edwards School toward AACSB of the EMBA program offered by IIM your career. Become influential and accreditation. Lucknow. The five-year agreement make the world a better place. with IIM Rohtak, the first arrange- Collaborations ment between the two schools, will Regis University’s School of n The Douglas C. Greene Center initially focus on faculty research Management does more than prepare for Innovation and Entrepreneur- workshops and doctoral student the adult learner for a successful ship at Southeast Missouri State development; it may eventually career in business. It also teaches a University in Cape Girardeau has expand to a dual EMBA. rigorous core curriculum that provides announced two partnerships in the the critical thinking and problem-solving field of microfinance. The school has Grants and Donations skills you need to become a responsible joined with The Kauffman Foundation n The Wharton School of the Uni- leader. The type of leader who creates to distribute and support the First versity of Pennsylvania in Philadelphia solutions that make a difference. Step curriculum for use by micro- has announced a US$12 million gift enterprise development specialists. from alums Bruce Jacobs and Ken- You’ll change your life and change the The center also is collaborating with neth Levy, the principals of Jacobs world. And your career will never be the microlending organization ACCION Levy Equity Management. The gift same again. Experience the power Texas to create ACCION Delta, will include $10 million to establish of influence. which will support microentrepre- the Jacobs Levy Equity Management neurs in the eight Delta states. Center for Quantitative Financial Research, which will be directed by n The University of Arizona’s Eller Donald B. Keim, Wharton’s John B. College of Management in Tucson will Neff Professor of Finance. The gift launch its new Center for Leadership will also include $2 million to fund Ethics with the help of a three-year the Wharton-Jacobs Levy Prize for BE INFLUENTIAL. commitment from Merchants Informa- Quantitative Financial Innovation, tion Solutions. The Phoenix-based which will recognize the authors of company provides integrity testing, outstanding articles that appear in > 1.800.680.3701 background screening, and identity peer-reviewed journals. > CPS.Regis.edu/beinfluential theft restoration services. COLORADO · NEVADA · ONLINE n The University of North Texas n Working through its Kelley School in Denton has received a pledge for > Read more online of Business, of US$22 million from entrepreneur and Bloomington is expanding its pres- alumnus Charn Uswachoke. It is the ence in India through memoranda largest gift in the history of UNT. Of of understanding signed with two the total gift, $5 million will go to the

18 November/December 2011 BizEd Stepping Down

Jerry E. Trapnell, who has served as executive vice president and chief accreditation officer of AACSB Inter- national since 2004, will step down from his current role in September 2012. He was the association’s first accreditation officer. He oversaw the College of Business to fund law to foster student entre- implementation of AACSB’s global study abroad scholarships preneurship and boost the accreditation standards for manage- for undergraduate and gradu- local economy. The joint ment education, which were adopted by the organization ate students, and $500,000 program between faculties is in 2003 while Trapnell was serving as chair of its board of will establish the Charn conducted through the Cen- directors. At the time, he was also dean of the College of Uswachoke Graduate Suite tre for Enterprise and Law. Business and Behavioral Science at Clemson University in the new Business Leader- in South Carolina. Trapnell has played a role in many other ship Building. The rest of the n The Walmart Foundation AACSB committees, including the Accounting Accredi- money will go to the colleges has donated $35,000 to tation Committee, the Special Committee on Global of music and engineering. expand the Veterans Launch- Accreditation Strategy, the Blue Ribbon Committee on ing Ventures program offered Accreditation Quality, the European Advisory Council, and n The Simon Graduate by the Rothman Institute of the Doctoral Faculty Shortage Working Group. In Sep- School of Business at the Entrepreneurship at Fairleigh tember, he will take on a part-time special advisory role University of Rochester in Dickinson University’s Silber- with AACSB. A search has begun for his successor. New York has received a man College of Business in US$3 million commitment Madison, New Jersey. The from Mark and Carolyn Ain ten-week course combines to support entrepreneurship online instruction with in- Special thanks to the dedicated education and scholarships. person teaching from faculty Mark Ain, an alum, is the and military veterans; it is advertisers who have been with co-founder and chairman of followed by ten months of BizEd for the past 10 years. workforce management firm one-on-one mentoring. Kronos Incorporated. Honors n A grant from the Fifth Third and Awards Foundation will be used to n The Graduate Manage- underwrite operating costs ment Admission Council for a Wall-Street-style trading (GMAC) has recognized room at Xavier University’s two schools with its annual Williams College of Busi- TeamMBA award, which ness in Cincinnati, Ohio. The honors universities that Bloomberg-equipped room, exemplify a commitment to part of the school’s new facil- social responsibility through ity, has been named the Fifth the actions of their stu- Third Trading Center. dents and the school’s sup- port for those efforts. The n The University of Wind- winner of the 2011 Team sor in Ontario, Canada, has MBA institutional award is received a CAN$450,000 the Rollins MBA at Crum- grant from the provincial mer Graduate School of government to develop pro- Business, Rollins College, Thanks to all who have advertised with us. grams between the school of Winter Park, Florida. The www.BizEdmagazine.com business and the faculty of 2011 Team MBA Service

BizEd November/December 2011 19 headlines

short takes

the American Taxation Association. ETS® Major Field Tests He is the Hugh Culverhouse Profes- sor of Accounting at the Culverhouse Available in more than a dozen School of Accountancy at The Uni- fields of study — including versity of Alabama in Tuscaloosa. The Bachelor’s Degree in award is presented in cooperation Business, Master of Business with the Ernst & Young Foundation. Administration (MBA) Award, which recognizes outstand- and Economics — these ing projects in categories such as n Fred Phillips has been awarded a comprehensive undergraduate community service and sustainability, 3M National Teaching Fellowship, the and graduate outcomes went to the Henry B. Tippie College highest teaching honor in Canada. assessments go beyond of Business at the University of Iowa Phillips is an accounting professor and the measurement of factual knowledge to help you: in Iowa City. Baxter Scholar in Accounting at the Edwards School of Business at the • track and evaluate students’ n Jimmy Peltier received the Life- University of Saskatchewan in Cana- mastery of their program time Achievement Award from the da. He was also the inaugural winner American Marketing Association this of the University of Saskatchewan’s • demonstrate program spring. A professor at the University Provost’s Award for Outstanding Inno- effectiveness and compare of Wisconsin-Whitewater, Peltier has vation in Learning in 2010. using national comparative spent 25 years as advisor for the data from nearly 1,000 colleges school’s student chapter of the AMA. n Online publication Small Busi- and universities ness Trends and smallbiztechnology. • enhance teaching and n Robert Novy-Marx has been com have placed several business learning with hands-on, awarded the 2011 Spängler Institute school professors and institutions actionable data for Quantitative Asset Management on their list of Top 100 Small Busi- (IQAM) Prize for the Best Paper in ness Influencers 2011. Among • gauge your institution’s the Review of Finance for his study, those honored were Jeff Cornwall, performance for accreditation “Operating Leverage.” Novy-Marx is the Jack C. Massey Chair in Entre- and accountability initiatives an assistant professor of finance at preneurship and director for the the University of Rochester’s Simon Center for Entrepreneurship in the Register today for a free Graduate School in New York. College of Business Administration one-hour webinar at at Belmont University in Nashville, www.ets.org/mft/bized n Steve Cook has been named win- Tennessee; Scott Shane, A. Malachi to learn more! ner of the 2011 Outstanding Teach- Mixon III Professor of Entrepreneur- ing Award for Economics in the U.K. ial Studies at Case Western Cook is a professor at Swansea Reserve’s Weatherhead School of University’s School of Business and Management in Cleveland, Ohio; Copyright © 2010 by Educational Testing Service. All rights reserved. ETS and the ETS logo are registered trademarks Economics in Wales. The award is and Patricia Greene, the President’s of Educational Testing Service (ETS). 15656 given by the Economics Network of Distinguished Professor of Entrepre- the Higher Education Academy. neurship at Babson College in Welles- ley, Massachusetts. Babson College n Ed Schnee has received the Out- itself was also named as a Small Busi- standing Tax Educator Award from ness Influencer for the year; so was

20 November/December 2011 BizEd Top 10 in research productivity for the past five years. Five leaders of management scholarship. Management at ASU’s W. P. Carey School leads the way.

Amy Hillman Editor, Academy of Management Review

Blake Ashforth Senior Editor, Organization Science

Kevin Corley Associate Editor, Academy of Management Journal

Jeff LePine Associate Editor, Academy of Management Review

Anne Tsui President, Academy of Management

wpcarey.asu.edu Management Research Productivity Rankings, A&M and . Texas ______Standing out is good business.

the University at Buffalo n In response to the growing n Colorado State Univer- School of Management Center need for business curricula sity’s College of Business for Entrepreneurial Leadership that focus on sustainabil- in Fort Collins has created in New York. ity issues, Ernst & Young the Beverage Business Insti- LLP and the Ernst & Young tute to provide specialized Other News Foundation have released a management education and n Baruch College’s Zick- case study that examines the research for the beverage lin Center for Corporate decision of a fictional firm to The fellowship is offered in industry. The institute will Integrity in New York City begin issuing a sustainability collaboration with the Forté offer a number of workshops has launched the Baruch report. The case examines Foundation, an organization of that can be combined Index of Corporate Political the feasibility of the report business schools and corpora- into certificates as well as Disclosure, which rates the from the perspective of the tions that seek to increase the an MBA with a specializa- S&P 100 companies from CEO, CSO, CFO, and Audit number of women in business. tion in beverage manage- “transparent” to “opaque.” Committee Chair. The study is ment. Founding sponsors The index uses a weighted available for free download at n Over the summer, 100 addi- of the institute include the system that includes 57 www.ey.com/climatechange. tional business schools joined Coca-Cola Company, items related to corporate the more than 500 already American Eagle Distributing political activity at all levels n The Kenan-Flagler Busi- accepting the GRE General Co., the Colorado Beer and branches of govern- ness School at the University Test for MBA admissions, Distributors Association, ment. In September, Baruch of North Carolina in Chapel according to Educational High Country Distributors, presented its research and Hill has created a new fellow- Testing Service in Princeton, New Belgium Brewery, made a summary available ship program for outstanding New Jersey. This summer, ETS Odell Brewing Co., Stolle online at www.baruch.cuny. women applicants to its MBA also launched its user-friendly Machinery, and Tamarron edu/baruchindex/results.htm. for Executives Programs. GRE revised General Test. Consulting.

BizEd November/December 2011 21

Ten deans take a look back at trends that shaped “What keeps management deans awake education at night?” over the last That was one of the ques- ten years and tions we wanted to answer offer their with the premiere issue of BizEd back in November visions for 2001. In the article “The the industry Challenge of Change,” in the years we noted that deans were worried about finding and to come. retaining faculty, effec- tively implementing tech- nology, globalizing their programs, and keeping up with the needs of a changing international business environment. We had a pretty good hunch that some of those concerns would be the same ones facing business schools ten years later. But to find out how those issues have evolved, or how they have been replaced by new ones, we approached ten individuals who have been deans ten years or longer and asked for their thoughts on key aspects of management education. Their wide- ranging essays consider what has occurred— and what has yet to be implemented—in areas as familiar as globalization and technology, and as crucial as accreditation and program design. They take a look at how women have fared in the upper echelons of management education, how schools have served minority students, and how business programs have dealt with issues of ethics, honor, and social responsibility. Some of these deans also muse on what the next ten years might hold, and how change will mark the next decade as indelibly as it did the last. But there’s one thing they all agree on: The key to the future of management educa- tion is understanding its past.

BizEd November/December 2011 23 Business Schools: A Look Back, A Look Ahead by Judy Olian percent in 2010. AACSB also has Almost ten years ago, I chaired an helped alleviate faculty shortages AACSB task force examining seri- through its Bridge Program tar- ous concerns about the future of geted to professionals, training 267 business schools. The result was senior-level business practitioners a hard-hitting report, “Business to become business faculty. While Schools at Risk,” which identified some traditionally trained faculty several major threats to manage- might grumble about this trend, it’s ment education, including the PhD likely to continue. shortage, the irrelevance of the The increase in PQ faculty curriculum, and the increased com- addresses another concern: the rele- petition from non-accredited insti- vance of the business school curric- tutions. A decade later, I see reason ulum. In response to that criticism, for tempered cheer. schools have not only hired more At the time, there was a growing practitioners as faculty, but also shortage of academically qualified introduced creative curricula and faculty. On the face of it, that prob- pedagogical innovations that are lem appears to have been eased. In schools globally, so even though more market-focused, career-ori- 2001, a total of 1,180 U.S.-trained we’ve been pumping the PhD pipe- ented, technologically supported, PhDs graduated in business and line, demand still exceeds supply. and globally immersive. And yet, management. By 2008, that num- As a result, leading business schools schools continue to teach in silos, ber had risen to 2,084. In addition, worldwide compete fiercely over the despite tight linkages among busi- AACSB’s Post-Doctoral Bridge Pro- same tiny pool of graduates, result- ness functions. To align our pro- gram for academics has helped tran- ing in steep salary escalation. grams better with business, we will sition 176 PhDs from other fields Because of supply shortages and need to challenge entrenched tradi- into business. cost pressures, there is an increas- tions related to faculty department Still, the growth rate of U.S. PhD ing number of business faculty structures and teaching traditions, graduates from 1970 to 2008 is who are professionally, rather than or else our students will be ill-pre- less than half that of MBA gradu- academically, qualified. In 2002, pared for the needs of the market. ates—236 percent for PhDs versus 22 percent of faculty at AACSB- Looking ahead, I see important 622 percent for MBAs. There has accredited institutions were profes- societal issues that need our voices been explosive growth in business sionally qualified, compared to 31 and ideas. We must do more to

The Future of Business Schools “I think the standard definition of business school as a place that you go to take courses is dying. In my view, it’s about creating a global knowl- edge and learning network that combines people, places, and technology Words for a lifetime.” of WISDOM

— Gabriel Hawawini, “The Challenge of Change,” November/December 2001 (then the dean and now a professor at INSEAD in France)

24 November/December 2011 BizEd infuse business thinking into the big As critics of business education issues of the day—education, pov- become more vocal, they challenge erty, healthcare, innovation, sustain- us to deliver clearer answers to Questions of able business, and the productive prospective students, as well as to intersection of business and gov- those who support our enterprise, Courage, Not Ethics ernment. These issues require the about the virtuousness of a busi- voice and thought leadership of our ness education. They insist that we by Paul Danos faculty, but with few exceptions, we demonstrate how business schools In light of the financial crisis, the have been absent from these conver- shape leadership values, determine big question for business schools sations. We won’t have that voice career success, and advance com- is not, “How do we teach ethics?” until we engage meaningfully and munities around the world. It’s actually, “How do we bet- creatively with other disciplines on Virtuousness as a standard for ter prepare leaders to meet their our campuses and beyond, in ways business education? Absolutely. responsibilities?” that mirror the complexity of these Business schools must focus on The press is replete with com- societal challenges. producing principled, skilled lead- mentary blaming this crisis on a There is no doubt that manage- ers for all forms of organizations. lapse of ethical standards among ment education is even more frag- To achieve that calling, schools business leaders and regulators. But mented than it was a decade ago, must exploit every tool available I do not believe that ethical lapses, with more types of educational pro- to bridge the global educational as normally defined, were the main viders (nonprofit and profit, accred- and digital divide, and to increase cause of this crisis. It was sparked ited and non-accredited, university the accessibility of business educa- by the actions of several key indi- and corporate), more campuses (sin- tion to all groups—economically viduals who did not fulfill and/or gle and multiple, within and across privileged or not. For example, fully understand the responsibilities countries, physical and virtual), Africa has only 771 business implicit in their positions. and more diversity (one-, two-, and schools compared to 3,850 in For that reason, business schools three-year MBAs, for instance). As the Americas and 6,494 in Asia. must teach future leaders what it an example, U.S. private for-profit Mobile communications have means to be fully responsible for the institutions grew from 3.5 percent of revolutionized the reach of our duties required of their positions. We the educational market in 2000 to programs, so that we now can rise must help them acquire the knowl- 11.8 percent in 2009. That fragmen- above the social, political, and edge they need to make appropri- tation is sure to continue. infrastructure barriers that exist in ate decisions, gather the courage One could argue that such frag- underdeveloped regions, to deliver to express their independent view- mentation is good for the consumer, business education and advance points, and develop the awareness to since there is an offering for every ideas that will elevate the well- act ethically in the process. By doing need. However, for traditional busi- being of global communities. so, we will do more to remedy poor ness schools, the competition has As I noted earlier, business business practices than we would by intensified, requiring us to be more schools have accomplished sig- focusing on ethics alone. convincing about the value and nificant change, and they have the Who was ultimately responsible distinctiveness of our programs. potential to achieve much more. for ensuring a well-functioning bank- The cost of business education is If I were writing a report today ing system? How well did these indi- escalating, and many schools are on the future of business schools, viduals fulfill their responsibilities? no longer accessible or affordable. I’d title it “Realizing the Promise The answer to the first question At the same time, high-flying tech of Business Schools for the World: is that top bank regulators at the entrepreneurs question whether Still Much to Accomplish.” U.S. Federal Reserve had the duty business education is necessary for and power to ensure a safe and successful business careers, and the Judy Olian is dean of UCLA Anderson orderly banking system. The answer economic crisis damaged confidence School of Management in Los Angeles, to the second is, “Not well.” Even in graduates’ job prospects. California.

BizEd November/December 2011 25 so, it is far too easy and incomplete Therefore, in addition to teach- to conclude that top bank regula- ing conventional business ethics, tors were unethical. While regula- we must ask: tors fell short on fulfilling their responsibilities, I see no evidence of • Are we giving students the tools widespread ethics violations. Given to grapple with an increasingly the fits and starts they exhibited in compensation schemes that led oth- complex world? finding solutions, they seemed to ers to ignore systemic risks. • Do we help them fully understand simply lack the requisite knowledge In the previous examples, the par- the duties and responsibilities or courage for their positions. They ties had the power to avert disaster, attached to the leadership posi- failed to analyze and assess systemic but they likely lacked the knowledge tions they will someday hold? risk, and they relied far too much their positions required, or even a • Do we teach them to appreciate on “free markets” to regulate banks thorough appreciation of the duties the courage it takes for a leader effectively, as Alan Greenspan him- they had assumed. Most important, to admit ignorance? self admitted. they seemed to lack the courage to • Do we train them to dig deep Now let us turn to the individual speak up when necessary. For that into issues and keep their minds banks and their leaders, the main reason, I conclude that business open and skeptical? targets for charges of greed and eth- schools should go far beyond what • Do we prepare them to keep ics violations. Who was ultimately is considered traditional ethics cover- learning for a lifetime? responsible for safeguarding the age as they prepare future leaders. banks, and how well did they fulfill The Tuck School of Business, If the answer to any of these their responsibilities? like many other business schools, questions is no, we must modify Bank directors and CEOs had will continue to offer courses that our programs and address each the duty and power to avert a crisis delve into the ambiguity and com- shortcoming in the months and at their banks. They should have plexity of ethical dilemmas and years to come. As we observe the had the knowledge to safeguard into the murky personal motiva- leadership deficiencies that lie at their institutions, but many did not tions that often accompany them. the root of the financial crises, it’s fulfill their responsibilities. They did We do so in the belief that raising vital that we teach our students not look broadly or deeply enough student awareness of these situa- the true responsibilities of leader- at risks to see the full consequences tions is a necessary starting point ship and expand our definition of extreme leverage, complex finan- to encourage responsible behavior. of ethics beyond its conventional cial instruments, and counterparty But traditional ethics coverage is bounds. reliance. Few if any displayed the not enough. The truth is that this courage to own up to ignorance in crisis could have happened even if Paul Danos is the dean of the Tuck the face of complexity. They also all parties had acted according to School of Business at Dartmouth in seemed to go along with perverse high ethical standards. Hanover, New Hampshire.

Ethics & Corporate Social Responsibility “In the so-called ‘new economy,’ it may seem that the rules of business have changed to suit the faster pace of the technological times. … There is no such thing as ‘cyberethics’ or ‘ethics in e-commerce.’ There is simply Words the practice of business ethics.” of WISDOM

— Marianne M. Jennings, “Ethics in Cyberspace,” January/February 2002 (then and now with Arizona State University)

26 November/December 2011 BizEd Where Is IT Taking Us? by Joyce Elam of their course material. I expect all Information technology has trans- of our students will be able to do formed how professors teach and so within the next few years. how students learn. But now that These changes have driven technology is so ingrained in our growth in online programs. In classrooms, it can be easy to forget 2001, FIU delivered less than 5 how fast things have changed—and percent of undergraduate courses how much technology still chal- exclusively online; today, that lenges us to rethink how we teach. number is close to 40 percent. In One of my first glimpses of what 2009, we launched an online MBA could be achieved with technology program; today enrollment in that came in 2001, with the launch of program exceeds that of all of our Wikipedia. At the time, I wondered face-to-face MBA programs. Online at the possibilities of an open-plat- enrollments across higher education form encyclopedia created entirely have been growing substantially by volunteers, but I could not have faster than traditional enrollments. predicted that Wikipedia would we saw the emergence of Web 2.0. As we enter the next decade, become one of the most visited Users began blogging on sites such as several new technologies promise information resources on the Web. WordPress and EduBlogs, network- to further transform education: Our world changed even more ing on Facebook, sharing videos in 2004, when Google went public. on YouTube and photos on Flicker, • Augmented reality, which com- Who would have known that by and sending 140-character tweets bines real-world elements with 2006, “Google” would be a verb in through Twitter. computer-generated data. the Oxford English Dictionary? Or Over time, the educational value • Game-based learning, or “seri- that today, Google would process of every one of these tools has ous games,” which place stu- more than 1 billion search requests been questioned. And every one of dents in competitive gaming daily in 40 different languages? them—Google, Wikipedia, smart- environments tailored to teach In 2001, we used mobile phones phones, and social media—eventu- concepts and develop skills. primarily to make phone calls. ally has been adapted in some way • Gesture-based computing that I could not have imagined that for educational use. tracks body movements, allow- within ten years, we would use Perhaps no innovation has been ing users to physically manipu- them to text, surf the Internet, and adopted more rapidly in higher late data and 3D images. access mobile applications far more education than learning manage- • Learning analytics, software that than we would use them for voice ment systems (LMS), which have we can use to collect data to communication. Here’s another advanced significantly since the help us understand how students measure of change: Six months early 2000s. They now integrate learn best. after Apple launched the App Store social media and third-party tech- • Interactive digital texts that go for the iPhone in mid-2008, the nologies to enable students to beyond digitally reproducing store offered more than 10,000 collaborate and access resources printed text to integrating live applications. Today, the App Store outside of the classroom, often links and social interactions. has more than 425,000 applica- through their smartphones and tab- tions and this year recorded its 10 let devices. Beginning this year, our While we might not be able billionth download. EMBA students at Florida Inter- to predict exactly how emerging In the mid-2000s, as bandwidth national University will use their technologies will change education increased and Web browsers evolved, iPads to access our LMS and most in the next decade, we can be sure

BizEd November/December 2011 27 Measures of Progress

By Barron H. Harvey In the past decade, business schools that students will expect to be able at historically black colleges and to learn and study whenever and universities (HBCUs) have dealt wherever they want. They’ll expect with the same concerns confront- our curricula to deliver learning ing most other schools: a shortage experiences that are engaging, col- of academically qualified faculty; laborative, accessible via mobile limited resources; a curriculum devices, and integrated with the that must constantly adapt to the world beyond the classroom. And evolving business environment; the they’ll continue to enroll in online demands of rapidly changing tech- programs at accelerated rates. nology; and the pressing need to That means that as educators, we increase partnerships and alliances. will have to embrace online deliv- But HBCUs also have faced ery of our programs. And we’ll be challenges related to their own forced to redesign the traditional historic mission: educating minor- face-to-face classroom environment ity students to become valuable to provide depth, flexibility, and members of the business commu- ments and bring more minorities to dynamic new learning experiences. nity. To measure the progress of the discipline. We can measure our As each new technology has these institutions, it helps to look progress through their achievements: arrived, many educators, like me, back much farther than ten years. The influence of the PhD Proj- might not have realized exactly The first HBCU was established in ect. Established by the KPMG where we were headed. But now 1837, and the first HBCU started Foundation in 1994, the PhD Proj- we know both what these tools offering business and management ect has had tremendous impact in make possible and how students classes in 1870. But it wasn’t until the past ten years, helping more want to learn. So, perhaps the 1945 that Atlanta University, now than 300 minority faculty members question for today is not “Where Clark Atlanta University, became achieve doctoral degrees. Today, in is technology taking us?,” but the first one to establish an MBA part because of the PhD Project’s “Where will we take technology?” program—37 years after Harvard encouragement, more than 400 In the next ten years and beyond, offered the first MBA in 1908. minority students are pursuing our goal will be to design educa- Today, there are 105 HBCUs PhDs in business. tional experiences that are more throughout the U.S., and 54 of The founding of the National interactive and powerful than those them have business schools. For all HBCU Business Deans’ Round- that came before. of us the goal remains the same: table. In 2001, the Roundtable was enroll and graduate more minority created with the mission of enhanc- Joyce Elam is dean of the College of students. Fortunately, we’ve seen a ing the effectiveness of HBCU busi- Business Administration at Florida Inter- rise of organizations and activities ness programs and increasing the national University in Miami, Florida. designed to strengthen our enroll- competitiveness of their graduates.

online learning “Shying away from Internet-based education because it is too impersonal to be effective is nonsense. Nothing is easier than building feedback and direct contact into the Internet.” Words

— Peter Drucker, “Taking Stock,” November/December 2001 of WISDOM (then with Claremont Graduate University in California; passed away in 2005)

30 November/December 2011 BizEd In 2003, the organization held its national and international commit- first National Summit in St. Louis, tees for professional organizations. Missouri, and representatives of 54 Many graduates from HBCU pro- business programs attended. The grams hold high-ranking positions four-day event included sessions on in Fortune 500 companies and the curriculum development, leader- public sector; others have become ship, fund raising, partnerships, successful entrepreneurs. The New student and faculty recruitment, and In short, over the past decade, accreditation. In 2012, the organi- HBCUs have participated in the Learning Paradigm zation will present its 10th summit world of management education in Washington, D.C. The Round- in diverse, vibrant, and exciting By Thierry Grange table also hosts an annual research ways. And they keep getting better. Over the past decade, attendees at forum, as well as a teaching confer- More important, these schools are many industry seminars and con- ence, designed to improve faculty thriving examples of the value of a ferences have debated what radi- resources at member schools. diverse faculty. Their graduates are cal changes might be in store for The pursuit of accreditation. living testaments of what minority education and how these would Accreditation is a hallmark of qual- students can achieve. impact business schools. But the ity education, and today the major- In the next ten years, all busi- events that ultimately had the ity of HBCU schools of business ness schools will face challenges most profound effect on business have attained it. The first HBCU similar to those they’ve seen in the schools came from outside aca- business school to achieve AACSB past ten—faculty shortages, rev- demia: the financial crises of 2002 accreditation was Texas Southern enue shortfalls, and the fast pace of and 2008, the scandals surround- University in Houston in 1968. In technological change. At the same ing prominent CEOs, and the 2001, there were 15 HBCUs with time, we’ll all need to expand our technological advances in knowl- AACSB accreditation; in 2011, graduate programs to include more edge dissemination. there are 22. Three—Howard Uni- online and nondegree programs and As business educators, we know versity, Morgan State University, focus more broadly on globaliza- as well as anyone how difficult it and North Carolina State A&T tion through our partnerships and is to predict the factors that will University—have also earned sepa- curricula. But HBCUs must also shape our programs in the coming rate accounting accreditation. work with their partner organiza- years. Even so, I believe there are The growth in graduate pro- tions and schools to continue their three that will have the most far- grams. During the past 11 years, unique mission—educating high- reaching effects in the next decade: more HBCUs have added masters’ quality minority students prepared The impact of technology on programs to their offerings, and two to make contributions to the world learning. Ten years ago, many now award PhDs. Jackson State of business and the global society. people feared that the Internet was University’s doctoral program began The future for HBCU business a serious threat to business schools in 2000 and Morgan State Universi- programs looks bright. Business because it would give online uni- ty’s in 2001, and together they have programs continue to be popular versities an edge in competing with produced 57 PhDs in business. among minority students. New doc- traditional schools. But that threat Institutional and individual torally qualified faculty are eager to has failed to materialize. Instead, excellence. During the past decade, return to HBCU campuses to make most schools have learned to com- the U.S. News & World Report a difference and add to the legacy pete with these providers by devel- launched its annual HBCU rank- of their alma maters. And more oping their own blended programs ing guide, and a number of these HBCUs are partnering with Fortune that combine face-to-face and schools have landed in Princeton 500 companies to place outstand- e-learning approaches. Review’s “Best Colleges” Sur- ing management talent in influential But the advent of the Internet vey. Faculty have won regional positions. The next ten years could has brought about dramatic changes and national teaching awards, as be the best ones yet for HBCUs. in the way students learn, profes- well as Fulbright scholarships, sors teach, and books are used in and student teams from HBCUs Barron H. Harvey is dean of the How- the classroom. Almost all students, have placed in national competi- ard University School of Business in from undergraduates to executives, tions. Faculty and deans serve on Washington, D.C. are comfortable using their com- puters to acquire new knowledge,

BizEd November/December 2011 31 whether in virtual classrooms or in the elite. As we try to maintain will have to design value proposi- peer-to-peer exchanges. Many fac- that elite image, we design portfo- tions that appeal to more diverse ulty members use digital portals to lios of management programs that applicants with more diverse ori- conduct online discussion forums seem more and more sophisticated. gins. They will have to be more or upload video lectures so they But are they necessarily better? I innovative, particularly in two can reserve class time for more argue that without a shared view areas: internationalizing the cur- interactive learning experiences. of integrity and ethics, we cannot riculum and conducting executive The availability of e-books allows achieve real learning in our class- education programs. teachers to use samples from a rooms. Without a shared view of Making their programs more dozen textbooks without overtax- the purpose of business, we cannot international will require schools ing student budgets. train leaders whose contributions to integrate the rest of the world’s The widespread acceptance of will lead to a better world. reality into their curricula. They online education has fundamen- The changing value proposition will need to send their students out tally transformed our perception of business education. Already, of the classroom for experiential of what knowledge is and how it schools have begun to craft differ- learning so these students can go should be acquired. It has changed ent value propositions to appeal from “fingers on” (the keyboard) the psychology of learning. New to different audiences, but I expect to “hands on” (the real world). learners want an education so Improving their executive edu- focused that it’s almost vocational. cation offerings will help schools They want to learn by doing, or at connect more deeply with the real least by experimenting in parallel world. Exec ed faculty not only with their reading and lectures. To teach business subjects to top- accommodate them, schools will level managers, they also learn need to institute major changes at about current business practices the faculty level, the curriculum from these participants, who share design level, and the classroom information about challenges and teaching level. Schools may need solutions at their own compa- a long period of anticipation to nies. Faculty can then share these install these new learning prin- insights with the rest of the busi- ciples, but they need to understand ness school, incorporate them into them now. their own lectures, and strengthen The economic model of the their entire programs. West. In Western economies, many In summary, during the next businesses are shifting away from ten years, business schools must traditional methods of building compete for students even as they wealth, which relied on good lead- this practice to become more com- deal with major changes affecting ership and strong product, to more mon in the next decade. At the our industry. They must embrace “virtual” models that often rely on same time, business schools are the realities of the digital age. nothing more than good press and seeing more potential students They must take up the ongoing an IPO. In the process, we’ve lost access business knowledge through challenge of establishing business even a minimal consensus regard- other venues—through schools of ethics. And they must design inno- ing what is ethical in business— engineering, economics, or political vative new value propositions that and we’ve lost a sense of purpose science, or through “institution- allow them to educate students to in business education. less” online learning portals. build a better world. In fact, business education today To stay competitive, business has become both a commodity schools will have to review their Thierry Grange is dean and director that we “sell” to our students and positions and their own contribu- general of the Grenoble Ecole de Man- a luxury product that we offer to tions to business education. They agement in France.

32 November/December 2011 BizEd The Dean’s Global Journey

By Howard Thomas layers that have meaning and influ- The Financial Times recently iden- ence. This big picture perspective tified me as the “most serial” of allows them to understand other serial deans, based on the fact that people’s attitudes and behaviors, I have held deanships on three and it helps them deal with emerg- continents: in the U.S., at the Uni- ing trends, evolving environments, versity of Illinois in Urbana-Cham- and messy problems. paign; in Europe, at the Warwick Contextual intelligence was Active listening. This means lis- Business School; and in Asia, at essential during my deanship at tening without interrupting, feeding Singapore Management University. Illinois. Because I’d been a fac- back what has been said, observ- These experiences have convinced ulty member there prior to being ing body language, and trying to me that global management educa- appointed dean, I understood the understand what has not been said tion needs to be delivered in the internal culture. I also realized the as much as what has. I believe that context of local history, politics, and influence of external stakeholders, new deans at international institu- culture—in a way that is “culture- such as alumni and the board of tions need to actively listen to all full” rather than “culture-free.” But trustees, and I knew I needed to stakeholders to get their input on it’s not easy to develop a leader- balance their focus on practical rel- the priorities and strategic directions ship style that works in a variety of evance with the faculty’s emphasis the schools should embrace. “culture-full” international settings. on research and teaching excellence. By the time I went to Warwick, For me, three components have been Contextual intelligence was distinctive models of European essential: cultivating contextual intel- also necessary when I took over business education had devel- ligence, practicing active listening the deanship at SMU. I needed to oped—as exemplified by insti- and learning, and taking time for understand quickly not only the tutions like HEC, IESE, IMD, reflection. I want to elaborate on Asian culture, but also how the INSEAD, London Business School, each one, as I think they all will be business school’s goals aligned with and Oxford—and I realized I critical for any dean attempting to the university’s and how deeply needed to reassure faculty that I lead an international business school the government of Singapore was would not attempt to impose an through the next ten years. involved in management education. American style of education on this Contextual intelligence. Today’s If I had not been able to put the U.K. school. By visiting the school deans must be aware of what’s school into these contexts, I would several times before taking up my immediately apparent, but also not have been able to function post, and by listening carefully to curious about other, less obvious effectively as dean. the concerns of faculty, adminis-

globalization “I think increasingly our challenges will be related to our ability to oper- ate globally in a world we don’t necessarily know. One day you might be in Words India, and the next day you might be in Iran. Students can’t just take busi- of WISDOM ness courses. They need to understand culture, philosophy, and religion.”

— Donna Shalala, “At the Top of Her Game,” July/August 2002 (then and now president of the University of Miami in Florida)

BizEd November/December 2011 33 trators, and alumni, I was able to to become more political, more You’ve Come a learn the internal and external con- subtle, more extroverted, and bet- texts that affected the school. ter able to cope with the dean’s Long Way, Maybe I also visited SMU multiple various identities of administrator, times before I assumed the dean- entrepreneur, and scholar. I believe By Linda R. Garceau ship at that school, so I could learn most deans will find that reflec- Ten years ago, when I attended about its culture, capabilities, chal- tion and thinking time will enable my first AACSB Annual Meet- lenges, and context. This helped them to become better at listening ing as a dean, I was one of the me assemble a strong management to others and practicing diplomacy. few women present at any of team as well as a group of external With luck, it will also help them the sessions. In 2001, only 16 experts who could help me iden- cultivate other traits that will serve percent of the deans at AACSB- tify weaknesses and opportunities any dean well: honesty, integrity, accredited schools in the U.S. for the school and develop a clear optimism, humanity, and humor. were women, and among all vision and strategic agenda. Whenever there’s a change in business deans in the U.S., only Time for reflection. Deans will leadership at any business school, 65 were women. always need time to reflect on and it can be an exciting but uncertain One reason women were so analyze the forces shaping their time for the new dean and the whole scarce was that there just weren’t schools—and this reflective time also organization. Staff, students, faculty, many of us in the business dis- will shape their behavior as deans. and other stakeholders all want ciplines. Women my age had While I was at Warwick, which stable and consistent leadership that attended undergraduate school in operated under a rigid university brings about long-term improvement the late ’60s and early ’70s. Many bureaucracy, I learned to cultivate and enhances the school’s distinct of us had pursued baccalaureates patience, tact, and diplomacy. This global footprint. Deans that study in one of the more “traditionally helped me adapt to the relentless the cultural context, actively listen to women’s” disciplines—such as pressures created by research assess- stakeholders, and constantly reflect English, education, psychology, ment and quality assurance exercises on their journeys will be well-suited or sociology—only transitioning mandated by the government, and to leading international business to business during our graduate the additional pressure to achieve schools to stability and success or doctoral studies. In 2001, we multiple accreditations and advance through the next decade. were just beginning to enter the in the media rankings. It also led me senior ranks of most colleges, to develop a coaching style of leader- Howard Thomas is LKCSB Chair of where we were considering our ship, and I worked closely with fac- Strategic Management and dean of the next opportunities in administra- ulty to nurture their work. Lee Kong Chian School of Business at tion. At the level of dean, those I believe these efforts led me Singapore Management University. opportunities were scarce.

Women in Business “It’s harder for a woman to be dean of a business school than to be president of a university. Three Ivy League schools have female presi- dents. But of the six Ivy League universities that have business schools, Words none have female deans.” of WISDOM

— Helen Frame Peters, “Educating Women,” July/August 2002 (then dean and now a professor at Boston College in Massachusetts)

34 November/December 2011 BizEd But times are changing. For top administrative positions in own challenges, as some co- proof, I look to events like the universities. In their paper “‘Per- workers interpret it as indecisive formation of Women Administra- fect Storm’ on the Horizon for or weak. On occasion, I have had tors in Management Education Women Business Deans?,” they to revert to a more directive style (WAME), which was founded note that, more frequently than of management, though I am glad in 1996 by Pat Flynn of Bentley men, women are promoted to the to report that those instances have University and literally a handful position of dean from the posi- grown more rare. Perhaps that’s of other senior women adminis- tion of interim or associate dean. because younger faculty desire trators. When I became involved While men account for 71 percent a greater level of ownership and in 2001, typical attendance at a engagement in the management WAME meeting was 25 or 30. At process, or because they’re more the 2011 event, there were more comfortable than older faculty are than 100 in the room. with a woman in the top role. The number of women involved Bringing women into the cor- in AACSB activities and gover- ner office also could have an nance also has grown substantially impact on the business curricu- in the last ten years. While few lum. Women have been leaders in women served on peer review developing values-based business teams in 2001, the organiza- education. They’ve championed tion has made an overt effort to ethical business practices, social increase the number of women entrepreneurship, and sustainabil- joining teams and taking com- ity. These programmatic initiatives mittee assignments. One mile- will alter the education that our stone was reached several years future undergraduate and graduate ago when Simmons College, a business students receive, encour- women’s school, applied for initial aging them to evaluate solutions accreditation—and AACSB assem- based on their social merits as well bled an all-woman peer review as the bottom line. team. Ten years ago, that wouldn’t More than 40 years ago, Vir- have been possible. of all associate deans, women ginia Slims cigarettes were mar- In the past decade, the associa- have gained parity in most other keted to women with the tag line, tion has achieved other milestones. administrative roles. Thus, we can “You’ve come a long way, baby.” Today, approximately 30 percent hope that the next generation of Indeed, women have come a long of the board is female, and two senior administrators will include way in the past ten years, but we women—Carolyn Woo and Judy more women in its ranks. still have a long way to go. It is Olian—have chaired the board of As that happens, I expect vital that when schools look to fill directors. But there remains sig- changes in business school man- leadership positions, they seek out nificant room for improvement. agement to follow. Like their candidates who might not always For instance, since 2001, the num- counterparts in business, women look or act just like their current ber of AACSB-accredited schools deans often display a collaborative leaders. Business schools need in the U.S. that have women deans management style that can be dif- the perspectives and insights that has increased by only 1.5 percent. ferent from that of their male col- women bring to the table—and so That’s just eight more deans. leagues. For instance, I don’t sit at does business. I expect those figures to change the head of the table in my confer- in the next ten years. Susan ence room, but at its center, and I Linda R. Garceau is dean of the Col- McTiernan of Quinnipiac Uni- choose to involve many others in lege of Business and Technology at versity has joined with Pat Flynn my decision-making process. East Tennessee State University in to study the ways women rise to This approach can bring its Johnson City.

BizEd November/December 2011 35 Revising accreditation standards Shaping the Future won’t be an easy or quick undertak- ing. After obtaining broad input By Richard E. Sorensen from the academic and business In my academic research, I study communities, the BRC will draft how change theory applies to position papers that identify the the implementation of large-scale most pressing issues facing manage- computer models that help solve standards could be revised to sup- ment education. Once these have business problems. As part of my port accreditation of international been presented for wide debate, research, I’ve reviewed Fortune 100 schools. Those revised standards, the committee will propose revised companies—in industries such as which granted accreditation based accreditation standards that will airline reservations, financial ser- on a school’s overall quality and be voted upon by AACSB mem- vices, and petroleum refining—that continuous improvement efforts, bers. The recommendations will be failed to use such computer models have been in place since 2003. offered in April 2013—ten years in the 1960s. Within ten years of Now, in 2011, the association after the association adopted its cur- the research, all of those firms had must adapt once more to align itself rent standards. The overriding goal either gone out of business or been with the new realities facing busi- is to make certain that AACSB and taken over by others. nesses and business schools. A new its members use the lessons of the Resistance to change was not an BRC has been formed to determine past decade to position themselves effective strategy for organizations how accreditation standards should for success in the next one. in the 1960s, and it is an even less be amended again to accommodate In my opinion, both AACSB effective strategy today. That holds an increasingly international mem- and its member schools will be best true whether the organization is a bership base that serves a globally served by an approach that focuses corporation, a university, or an asso- interconnected economy. The com- on overall high quality and con- ciation such as AACSB International. mittee faces many challenges, from tinuous improvement. Together we Like businesses and business understanding how environmental must identify the characteristics of schools everywhere, AACSB has changes will impact business edu- a quality business school and use grown more international and cation to providing leadership for them to develop the accreditation complex in the past ten years, and businesses that want to reposition standards and practices that will it has made significant changes to themselves as socially responsible support top programs. meet the constantly shifting needs organizations. Along the way, the From much debate and discus- of its evolving membership. In committee must determine how to sion, we can already point to sev- 2000, AACSB established a Blue enhance value to accredited schools eral key characteristics that a qual- Ribbon Committee on Accredita- that are increasingly diverse in their ity business school should possess. tion Quality to determine how the expectations and needs. These include a well-developed

Technology “I think technology does have the capability to enable us to make the best use of time. But I don’t know that we’ve developed the technology that enables us to be more effective in our reflective time.” Words

— Robert Mason, “On the Right Tech Track,” November/December 2001 of WISDOM (then with Florida State University, now with the University of Washington)

36 November/December 2011 BizEd strategic mission statement that differentiates the school from other Competition Through Cooperation programs; a curriculum that sup- ports the school’s mission and by Fernando A. D’Alessio our market mid-decade to posi- builds on the traditional business Twelve years ago, I was asked to tioning ourselves as a global pro- disciplines; decisive, collaborative lead a project to create a gradu- vider of management education leadership that deploys resources ate school of business for the by 2014. effectively; a well-prepared faculty Pontificia Universidad Católica The cornerstone of our success that balances teaching, research, del Perú in Lima. Knowing how has been a series of powerful alli- and service; a student body suited fiercely competitive the industry ances with top business schools to the school’s particular mis- had become, I knew certain con- around the world. Although sion; and a career services system ditions would have to be in place this might be considered a non- that helps students find jobs and for any new school to be success- traditional approach, I believe become responsible citizens. ful in this new millennium. such alliances will become more I think it’s just as critical that It would need a state-of-the- important—even essential—for business schools emphasize the “soft art, independent campus with a business schools during the sec- skills” that are so important for distinctive brand, at a time when ond decade of the 21st century. great leaders to develop. These skills many schools were fighting for We pursued these partnerships to are complex and wide-ranging, as recognition. It would need to they encompass an appreciation attract faculty with academic and for justice, diversity, lifelong learn- corporate backgrounds, when ing, ethical behavior, and sound such faculty were expensive and environmental practices. They also scarce. The school’s leadership include respect for every culture, an would need autonomy to make understanding of the global busi- operational, academic, and finan- ness community, and strong politi- cial decisions, when securing cal awareness. All of these abilities funding was becoming more dif- must be mastered by top executives ficult. And it would need an if they are to be successful. MBA curriculum that trained Even as the business world students in responsible leader- changes, and changes again, ship; taught them soft skills such these hallmarks of quality remain as critical thinking, emotional constant. As the BRC moves for- intelligence, and communications; ward—as the association and its and offered comprehensive study member schools contemplate the experiences abroad. future—it will be helpful to all of And, by the way, this brand- them to think about what attri- new school would need to do address two distinct challenges: butes endure. These will become all of this while competing with developing a curriculum and hir- their building blocks for success for established business schools that ing faculty. the next ten years. were trying to do the same. Developing the curriculum. Despite the challenges, plans Our first MBA program was Richard E. Sorensen is dean of the went forward to create CEN- offered with the Maastricht Pamplin College of Business at Virginia TRUM Católica, and the cam- School of Management in The Polytechnic Institute and State Univer- pus was christened on March 1, Netherlands. Students take classes sity in Blacksburg. He is also co-chair of 2000. We laid out a four-stage at CENTRUM and MSM, and at AACSB’s Blue Ribbon Committee on strategic plan that would take us the end, they earn MBA degrees Accreditation Quality. from laying the foundations of from both schools. We also the school in 2000 to building started a full-time entrepreneur-

BizEd November/December 2011 37 ial MBA with Babson College To facilitate student and fac- In just ten years, CENTRUM’s in Wellesley, Massachusetts, in ulty exchanges, we formed stra- nontraditional approach has which students spend two weeks tegic alliances with schools such allowed it to grow from an idea at Babson learning about new as IE, Johns Hopkins University’s to a standalone business school. ventures and startups. Carey Business School in the Today, we are supported com- Once these programs were in United States; Université Laval in pletely by tuition and partnerships. place, we were able to strengthen Canada; ESSEC Business School, We do not receive funds from the CENTRUM’s own offerings to Audencia Nantes School of Man- university, government, or donors. its local market. We launched a agement, and Grenoble Ecole de We also have earned AACSB, managerial MBA in August 2001. Management in France; and Tel EQUIS and AMBA accreditations. This program is delivered every Aviv University and Hebrew Uni- With today’s competition being other week in Lima and in alter- versity in Israel. so fierce, business schools must nate weeks in the Peruvian cities of Finding faculty. At CEN- find ways to set their programs Arequipa, Trujillo, Chiclayo, Piura, TRUM, strong alliances also apart, even as they work together. Cajamarca, Huancayo, and Cusco. have helped us fill our faculty They must deliver comprehensive We then launched a Global roster, which includes full-time, global programs, even as they EMBA joint program with Tulane part-time, affiliated, and partner must sustain their resources. Born University in New Orleans, Loui- faculty. Most of our part-time in today’s environment, CEN- siana, which sends students to professors are professionally TRUM was ready to adopt new CENTRUM; Tulane’s campuses qualified, but almost all others strategies to suit the competitive in New Orleans and Shanghai, are academically qualified. Our landscape and help it become a China; and Instituto de Empresa affiliated professors are non- self-sustaining global business (IE) in Madrid, Spain. In 2008, we tenured academics, corporate school. I believe other schools launched an Energy MBA with the practitioners, or independent will have to recreate themselves ’s Haskayne consultants who commit to teach in similar ways, adopting non- School of Business in Canada. one course a year and conduct traditional approaches to hiring We recently opened facilities in research. Professors from our the faculty and designing the Bogotá, where we deliver a new partner schools teach in programs curricula that will support their Global MBA with EADA Bar- either at CENTRUM or at their growth over the next ten years. celona. As part of the program, home institutions. students visit Barcelona, Miami, Today, more than 200 faculty Fernando A. D’Alessio is the direc- and Lima. We are also looking members cover CENTRUM’s aca- tor general of CENTRUM Católica forward to entering the markets in demic activities in all locations. at Pontificia Universidad Católica del Buenos Aires and Miami. Tenure? What for? Perú in Lima.

Ethics & Corporate Social Responsibility “Ask Human Rights Watch about Enron’s record in India as it built the Dab- hol Power Plant. No amount of support for the Houston Ballet can excuse the injustices perpetrated in India under the rubric of business investment.” Words

— Judith Samuelson, Your Turn, September/October 2002 of WISDOM (then and now with the Aspen Institute)

38 November/December 2011 BizEd Better Days Ahead HBS students convinced more than half of their class to voluntarily take by Ángel Cabrera an oath of professional conduct; How much things can change in they even spurred students around a decade! In October 2001, we the world to join their MBA Oath learned that executives of the movement. At the World Economic energy darling Enron had hidden Forum, the Young Global Leaders billions in debt through accounting developed a Global Business Oath, engineering and dishonest finan- which they encourage the world’s cial reporting. The scandal wiped CEOs to take. These initiatives are out thousands of jobs and tens of now coordinated by a new founda- billions of dollars in shareholder tion, “The Oath Project,” endorsed value, including the retirement schools was to deny culpability. by organizations such as Net assets of thousands of employ- Many educators argued that it was Impact, the Aspen Institute, and the ees. It handed a death sentence to not our responsibility to mold the United Nations. legendary accounting firm Arthur character of business leaders. Even In 1999, Kofi Annan, then Secre- Andersen and led to the largest if it were, they said, we could do tary-General of the United Nations, bankruptcy case in U.S. history. little to change the minds of people asked the private sector to join the That is, until telecommunica- whose value systems had been U.N.’s efforts to endorse the Global tions giant WorldCom filed for an formed long ago. But, at best, this Compact. This initiative is a set of even bigger bankruptcy in 2002, a attitude was self-defeating, akin to principles that support global corpo- consequence of an accounting fraud admitting that what we do doesn’t rate citizenship and responsible busi- that masked hundreds of millions make much of a difference. At ness practices. Since then, more than of dollars in losses. WorldCom held worst, it was irresponsible, because 5,300 companies in 130 countries this infamous record for only six if we don’t shape the attitudes and have voluntarily signed on. In 2007, years, until Washington Mutual and values of managers, who will? the U.N. led an international task Lehman Brothers imploded amid the Eventually, these denials led to force of deans and professors to pro- subprime mortgage crisis in 2008. introspection, heated debate, and, duce the Principles of Responsible That triggered a domino effect that ultimately, action. In the last few Management Education, which asks set off a financial market failure, a years, we’ve seen those early atti- business schools to embed global massive global economic recession, tudes begin to change. citizenship in their curricula and and the loss of trillions of dollars in In 2005, for example, a group research agendas. The task force, assets and tens of millions of jobs of students at the Thunderbird which I co-chaired, was supported that are yet to be recovered. School of Global Management by AACSB, EFMD, and several To put it mildly, the management led an initiative—supported by other organizations. Today, PRME is profession has seen better days. It’s our faculty, administration, and endorsed by more than 350 schools. no wonder that so many people in board—to establish for manag- Such initiatives give me hope the media and the public at large ers the equivalent of medicine’s that business schools are internal- believe that greed—not a sense of Hippocratic Oath. At first, many izing their obligation to educate service to the greater good, hard criticized the effort. A Financial not just technically capable manag- work, or even fair play—is the defin- Times columnist even described it ers, but socially responsible leaders ing value of management today. as “positively cretinous.” Yet, in committed to creating real value When these scandals erupted, 2008, in the wake of the Lehman for their companies, their commu- the knee-jerk reaction of business Brothers collapse, Harvard Busi- nities, and the world. In the next ness School’s Rakesh Khurana and decade, I hope that a code of con- Ángel Cabrera is the president of Nitin Nohria argued that manage- duct for our students—and for the Thunderbird School of Global Man- ment was in dire need of a code of management profession—is no lon- agement in Glendale, Arizona. The six conduct. Klaus Schwab, founder of ger viewed as “anti-business,” but Principles of Management Education the World Economic Forum, sepa- as a recognition that business plays can be read at www.unprme.org/the- rately made the same case. an irreplaceable role in creating a 6-principles/index.php. In 2009, a group of second-year sustainable world economy.

BizEd November/December 2011 39 Tests Three schools that made of bold moves in 2001 offer updates on their progress, lessons they’ve learned, and plans they have for by Tricia Bisoux the future.TimeizEd is not the only one in the industry reaching the ten- year milestone. Many significant business school initiatives are as well. When administrators contemplate a ten-year- Bold program, what aspects seem most important? What adjustments do they think made a difference? What has been the evidence of success? Representatives from the three schools featured here are answering those questions as they look back on the ten-year histories of their initiatives. In 2001, ’s Stern School of Business, HEC Paris, and the London School of Economics and Political Science first joined forces to launch TRIUM, their collaborative EMBA program that integrates economic, political, and social policy. ie/Corbis d Har

44 November/December 2011 BizEd BizEd November/December 2011 45 The Wharton School at the Uni- versity of Pennsylvania in Phila- l delphia also took a leap across the hoo Sc

United States to start a second cam- n pus in San Francisco, California. The Indian School of Business made perhaps the biggest leap of all—launching its entire enterprise. One of BizEd’s very first features discussed the creation of ISB, whose Courtesy of the Wharto Hyderabad campus was inaugurated A rendering of a 75-seat classroom in Wharton San Francisco’s new facility. in June 2001. The school was formed Desk surfaces will be equipped with touchscreen capabilities to control the room’s video and projection technology. when a number of American citizens of Indian heritage, executives, fac- The Connected Campus students interested in industries ulty, and multinational corporations Wharton San Francisco heavily represented on the West worked together to create a globally San Francisco, California Coast, such as sports, entertain- focused, culturally sensitive, Western- Launched in August 2001 ment, and the booming tech sec- style institution. tor in Silicon Valley. It wanted to There was something about When the Wharton School decided provide a more accessible Wharton starting a new business school ven- to open its 20,000-square-foot facil- campus for students and alumni ture in 2001 that seemed especially ity—then called Wharton West—on based on the West Coast and in meaningful, for reasons that were the top floor of the Folgers Build- Asia. Finally, it wanted to provide both exciting (the first year of the ing in San Francisco’s business and a home base for faculty who were new millennium) and unexpectedly financial district, it caught the atten- involved in research and consulting tragic (September 11, 2001). At tion of the industry. At the time, projects in the region. times, there were certainly reasons several East Coast schools had set Although the facility opened just to be concerned about the out- up research centers or training pro- prior to September 11, that event come, these educators emphasize. grams in California. But Wharton did not have as much direct impact But as these three programs weath- was offering its complete executive on the program’s early days as the ered local, national, and global MBA, taught by its own faculty burst of the dot-com bubble, says uncertainties, the administrators using its Philadelphia curriculum, in Leonard Lodish, founding vice and faculty responsible for their its new San Francisco home. dean of Wharton San Francisco. success were able to learn valuable Wharton entered the Califor- He remembers that there was “a lessons, adapt to trends, and build nia market for several reasons. It lot of anguish” when a significant significantly on what they started. wanted to offer opportunities for number of students lost their jobs

online learning “Business schools should offer courses in design. Everything I do in my non-Dilbert-related business involves some form of design. … I’m always looking at packaging, I’m always looking at Web sites, I’m always looking Words at documents. Everything is designed.” of WISDOM

— Scott Adams, “Funny Business,” November/December 2002 (then and now, author of the “Dilbert” comic strip)

46 November/December 2011 BizEd as their companies downsized or nected learning,” in which students, The true star of the space, says folded. That first cohort had more faculty, and guests can connect to Woods, is high-definition video than 60 students, and nearly a each other quickly, easily, and seam- technology—and lots of it. Cam- quarter of them were affected. Fac- lessly, no matter what kind of tech- eras are built into all of the flat ulty and staff spent a great deal of nology they are using or where they screen monitors. All group study time supporting those students as are in the world. rooms include high-definition they found alternate employment. “We’ve all been to presenta- video­conferencing equipment to In the years since, Lodish tions where speakers bring their allow teams to collaborate with emphasizes,Wharton has ensured PCs or Macs, and then they fumble teammates anywhere in the world. the success of the San Francisco around because they don’t have the Each room also includes table- campus by making sure its curricu- right connector or the screen size is top touchscreen technology that lum, faculty, and administration wrong,” says Woods. “These may enables students and faculty to stay closely linked to its Philadel- seem like small things, but they project and interact with content phia roots. “The two cultures must have an impact on the delivery.” or capture it digitally. The spaces be the same,” he says. “To this day, Designers of the new facility are “production ready” for stream- our admissions decisions for both our East and West Coast campuses are made by the same people, in Wharton San Francisco’s the same room.” new location, the historic As it celebrates its tenth anniver- Hills Brothers Building. sary, Wharton San Francisco now has more than 700 alumni. Plus, it’s making another move—into a brand-new facility. Opening in Janu- ary 2012, Wharton’s new San Fran- cisco campus will occupy the historic

Hills Brothers Building, located l

about two blocks away from its orig- hoo Sc

inal campus. The expansion comes n in conjunction with the school’s plans to increase its executive educa- tion and entrepreneurial programs in San Francisco, as well as expand its slate of speakers and events.

Wharton didn’t make the move Courtesy of the Wharto just to have a larger facility, says Deirdre Woods, Wharton’s chief wanted to steer clear of any com- ing online video, broadcasting information officer. The school also munications or collaborative tech- classes online, or conferencing welcomed the opportunity to have a nologies that require special accom- guest speakers from around the technological “blank slate,” where modations or connection points. world into the facility’s amphithe- it could build an all-digital learn- Telepresence, for instance, is a ater classroom. ing environment without having wonderful technology, but because “Our students and faculty will to retrofit an existing infrastruc- of its size and expense, it has too be using a range of devices, includ- ture—in essence, to fully embrace a many limitations on who can use ing laptops, iPads, and smart- 21st-century educational model. A it, Woods points out. Instead, the phones. They’ll be using different digital facility will support Whar- new facility is equipped with more applications like Skype or Adobe ton’s objective to move beyond the generic connections that can accom- Connect to collaborate with team idea of “blended learning” to “con- modate any device. members who aren’t in the same

BizEd November/December 2011 47 room,” says Woods. “We wanted Timing Is Everything participating school—LSE, NYU the space to support all of that.” TRIUM Global Executive MBA Stern, and HEC Paris. They return Another crucial aspect of the Launched in September 2001 to NYU Stern for the program’s new facility’s design is that it has concluding two-week session. been “future-proofed” as much as It was mere coincidence that the In between these meetings, they possible, says Woods. The design- TRIUM Global Executive MBA also make two one-week trips to ers did their best to build systems accepted its first cohort of students emerging markets. This model has that could accommodate new tech- on September 9, 2001. Those remained fairly constant. How- nologies by changing only a few students were assembled at the ever, since 2001, the program has wires. In addition, they avoided London School of Economics and changed in four significant ways trying to do too much to customize Political Science (LSE) for their in response to changes in the the technological features. first two-week session. global environment: If the last ten years have taught The timing was difficult, but the • When TRIUM first began, the educators anything, says Woods, program’s focus actually became one-week modules in emerging it’s that many technologies become even more applicable in a post- markets were held in Brazil and obsolete in months, not years. If a 9/11 world, says Erin O’Brien, Hong Kong. As Asian markets school invests too heavily in creating associate dean of TRIUM and the “perfect” learning environment global programs at NYU Stern. for today, it will be that much more “TRIUM integrates international expensive to accommodate advanced economic, political, and social technologies tomorrow. policy in the business curriculum Today’s business schools will find through the participation of LSE,” it increasingly necessary to create says O’Brien. “The importance dynamic, flexible, and functional of understanding the sociopoliti- learning spaces that can easily adapt cal and economic dimensions of as educational methods change, business has only increased. The Woods emphasizes. “We can’t pre- complexity of operating in a global dict what’s coming next. But we do world has created a critical need know that whatever it is, it will be for executives who can manage Internet-connected,” she says. “Eigh- in this environment and have teen months from now, we might the ability to lead in complex or be talking about flexible screens or ambiguous circumstances.” holograms. We want to be able to According to the program’s The deans and heads of HEC Paris, scale anything that connects to our original design, TRIUM students NYU Stern, and London Business School take the stage at a ceremony classroom to the right formats.” spend two-week modules at each during TRIUM 10 in Paris.

globalization “In a post-September 11th world, we have been made more conscious that for some in the world, ‘globalization’ is synonymous with ‘American imperialism.’ … We are compelled to cultivate an increased sensitivity to Words cultural and social issues in our students.” of WISDOM — Louis E. Lataif, Your Turn, March/April 2002 (then dean at Boston University in Massachusetts; recently retired from that position but still serving on a number of boards)

48 November/December 2011 BizEd rose in importance, the alliance moved those modules to their cur- rent locations in Chennai, India, and Shanghai, China. The final two-week session will now be held in Paris. • The curriculum has been expanded to focus on leadership and professional development. • TRIUM’s capstone course has been expanded from a strategic exercise into a full-blown incubator ity and accelerator for global busi- ivers Un nesses, says O’Brien. Today, alumni ork are invited to act as investors, men- Y tors, and experts to help students take their business ideas from con- ception to launch as the culmina- tion of their studies. So far, several Courtesy of New of their ideas have resulted in busi- More than half of TRIUM’s 500 alumni came to Paris to celebrate TRIUM 10, the program’s 10th anniversary event. nesses that remained in operation after they graduated. • Finally, starting with the class student cohorts, which aver- plans to add a second cohort to of 2008, TRIUM began purchasing age about 51 students, also has the program in September 2012. carbon offsets, explains Bertrand changed dramatically. In 2001, To maintain such a long-term Moingeon, deputy dean at HEC approximately half the students alliance, O’Brien and Moingeon Paris and co-founder and vice dean in TRIUM came from North stress the need to develop a high of TRIUM. “One of the negative America—today, that number is level of trust among the partners. externalities of globalization is less than 20 percent. Students “This allows us to adapt the pro- the increasing level of greenhouse now come from more than 30 gram to the needs of the students gases in the atmosphere. Because countries, and many have lived in and the changes in the market— of the global nature of our student countries other than their own. for example, changing the location body, we estimate that the pro- The international backgrounds of the emerging market modules,” gram now generates between 800 of the students work with the says O’Brien. Good governance is and 1,000 tons of carbon a year,” program’s design to cultivate also crucial, Moingeon adds. The he says. “We decided to purchase global collaboration and business deans of all three schools have carbon offsets from Carbonfund. development, says O’Brien. For appointed program and academic org, which has one of the most example, TRIUM students have directors who work on behalf of comprehensive verification schemes funded a microfinance initiative in the alliance. That core staff coordi- in the industry, to support renew- India, established an investment nates resources among the schools able energy projects.” This step bank in Ghana, and opened retail to ensure the program’s success. was important, he adds, because centers in Russia. “The three schools are ready it helped the program balance its This past summer, more than to do what is good for TRIUM, mission to cultivate multinational half of the program’s nearly 500 not just their own interests,” says business and social networks with alumni came to Paris for TRIUM Moingeon. “We have a shared its desire to encourage global cor- 10, the alliance’s tenth anniversary vision for the value we wish to porate responsibility. celebration. And expansion plans deliver and a shared commitment The makeup of TRIUM’s are in the works—the alliance to identify the best talent.”

BizEd November/December 2011 49 A rendering of ISB’s new campus, which will open in 2012 in Mohali, India.

Gaining Momentum Indian School of Business Hyderabad, India Launched in June 2001

At ISB’s opening ceremony, Atal Bihari Vajpayee, who was then the prime minister of India, called the school “a gift to the nation.” That Speaking in 2001, Kellogg profes- was 1996 to 2001, when the school was a remarkable description, but sor and ISB advisory committee was still in its planning stages. The also presented the school with a member Bala Balachandran said, second phase, from 2001–2006, was remarkable responsibility in terms of “Students will be globally oriented affected significantly by 9/11. “Those what it was expected to accomplish but able to analyze local problems.” years were a period of struggle, with for so large and complex a country. Students could receive that educa- the shock of 9/11 casting its shadow However, the new venture would tion through a curriculum that in the first year of ISB’s operations,” have help. ISB’s operations were included a one-year post-graduate says Rangnekar. He adds that the being overseen by the Wharton program (PGP) in management, school was able to weather that School and by Northwestern Uni- equivalent to an MBA; a PhD pro- period because of the strong support versity’s Kellogg School of Manage- gram; and executive education. it received from its founding schools, ment in Evanston, Illinois. When In the intervening years, the its advisory board, and businesses students graduated, their diplomas school has formed academic cen- from around the world. would carry the seals of Kellogg, ters for entrepreneurship; analytical From 2006 to 2011, the school Wharton, and ISB. Today, ISB still finance; leadership, innovation, and has grown significantly. In addition enjoys the participation of Kellogg change; global logistics and manu- to opening several of its research and Wharton but is further affili- facturing strategies; real estate centers, it has seen its nearly 50 ated with London Business School; and infrastructure; and IT and the faculty become more internationally Massachusetts Institute of Technol- networked economy. Its latest two known, their research appearing in ogy’s Sloan School of Management centers indicate the school’s grow- global journals and generating the in Cambridge; and The Fletcher ing focus on emerging markets. interest of governments and industry, School, a graduate school of inter- The Centre for Emerging Market says Rangnekar. national affairs, at Tufts University Solutions opened in March 2009, Its student and alumni base in Medford, Massachusetts. and the Centre for Case Develop- also has expended rapidly: Since From the start, ISB’s model ment in October 2009. its inception, ISB has graduated embraced the global economy and ISB’s short history has included more than 3,500 PGP students and American style of business educa- three distinct five-year phases, says trained more than 14,000 executive tion in an Indian-specific context. its dean Ajit Rangnekar. The first education participants. It recently

globalization “Multinational organizations today want people who can bring a true global perspective to their roles, not just because they’ve learned about it at business schools, but because they’ve experienced multicultural per- Words spectives to problem-solving first-hand.” of WISDOM — Gabriel Hawawini, “The Challenge of Change,” November/December 2001 (then the dean and now a professor at INSEAD in France)

50 November/December 2011 BizEd TOUGH ROOM

accepted the first class to its new miles from Hyderabad in Mohali, a the Punj Lloyd Institute of Physical 18-month post-graduate program city of more than 120,000 people in Infrastructure Management. in management for senior execu- northern India. The Mohali campus Rangnekar hopes that, with tives, ISB’s equivalent to an execu- will house four institutes focused on its two campuses, ISB will find tive EMBA. issues important to India’s develop- its next five-year phase is defined And like Wharton with its San ment: the Bharti Institute of Public by the impact it makes on its stu- Francisco campus, ISB is ready to Policy, the Max Institute of Health- dents, industry, and the academic make its next big move. In 2012, it care Management, the Munjal community. He also hopes to see will open a second campus 1,800 Global Manufacturing Institute, and the school strengthen its role as a resource for those interested in emerging economies such as India. ISB’s home campus in Hyderabad Rangnekar especially wants ISB’s graduates to solve the many social problems that India now faces. “We want to make an impact on the gov- ernment’s effort to improve the liv- ing standards of the people, as well as society itself, as it grapples with social inequity. The next generation of business schools should trans- form not just the lives of students, not just industry, but the society that we live in. I envision ISB play- ing its part in this transformation, as a change agent, not just in India, but all over the world.”

BizEd November/December 2011 51 &Then

Data fromnow a variety of sources show how business schools have grown, globalized—and in some areas, remained generally unchanged—in the past ten years.

uring the first decade of AACSB’s Global Membership the 21st century, business 2001 2011 schools reacted to the Total educational members 820 1,239 Drapid and seismic shifts U.S. 643 660 in business by introducing new courses, new programs, and new Rest of world 177 579 delivery systems. Yet despite these Countries/territories represented 50 81 sometimes sweeping physical and curricular changes, today’s business Total accredited members 405 633 schools still have much in common with their counterparts of ten years U.S. 382 482 ago. Data from AACSB Interna- Rest of world 23 151 tional’s Knowledge Services depart- Countries/territories represented 14 41 ment present a portrait of member schools then and now, and in many While AACSB’s membership has grown in countries around the world, the biggest jump came in Asia. In 2001, the association had 22 Asian members; areas, the portraits are very similar. in 2011, there were 216. Numbers also soared for European members But even in the ivory tower, (from 75 to 215) and those from Oceanic countries (from 12 to 38). where implementing change can be (Source: AACSB International Membership Data) agonizingly slow, there’s been move- ment in key areas: An increased

52 November/December 2011 BizEd AACSB Membership Past and Present number of women are enrolling in in 2001 in 2011 PhD programs and teaching at busi- ness schools. More schools are plac- Percent of Schools… ing a stronger emphasis on research. With master’s programs 88% 94% More schools are effectively creat- Considered small (with 35 or fewer full-time 33% 31% ing more memorable brands. faculty) One of the strongest general With high emphasis on teaching 91% 88% trends in management education over With high emphasis on discipline-based 41% 64% the past ten years has been the push research toward globalization. Schools have developed international partnerships, With named or distinctly branded schools 35% 48% recruited heavily from overseas, and built their own campuses in foreign Percent of Faculty Who Are… countries. And schools from around Full-time with tenured or tenure-track positions 83% 65% the world have stepped forward to become major players. Full-time 82% 80% For instance, ten years ago, only Full-time equivalent or part-time 17% 19% 22 percent of AACSB’s educational Full-time with doctoral degree 86% 76% members were located outside the Academically qualified (data not collected) 62% U.S. By 2011, that number had Professionally qualified (data not collected) 32% risen to 47 percent. The greatest change has been in Asia, where there’s been an 882 percent jump. Percentage of Women Among… Membership has also surged in Faculty 23% 30% Europe and Oceanic countries. Deans 16% 18% There has been similar growth in numbers of non-U.S. schools Undergraduate degree recipients 46% 45% that have achieved AACSB accredi- Generalist master’s degree recipients 36% 36% tation. In 2001, not quite 6 percent Specialist master’s degree recipients 56% 48% of the accredited schools were Doctoral degree recipients 34% 38% from outside the U.S. In 2011, that number rose to almost 24 percent. How has AACSB membership evolved in the past ten years? One major change Again, the greatest concentration reflects the makeup of the membership itself. In 2001, the association’s Business of new accreditations occurred in School Questionnaire only collected data from U.S. members; in 2011, responses reflect data from a much more global membership pool. Thus, information shown Asia and Europe. in these tables might not necessarily indicate trends among business schools More schools in the U.S. also internationally as much as they reflect trends among AACSB members. are globalizing in terms of the stu- The sharpest changes are visible in two areas. In 2011, a larger proportion of dents they enroll and the faculty member schools reported an emphasis on discipline-based research, likely reflecting they hire. According to AACSB the priorities of new schools added since 2001, rather than changes within existing member institutions. In addition, there has been a noticeable drop in the percentage data that relied on a sample of of full-time faculty with doctoral degrees, most likely arising from the increased approximately 100 schools, only number of professionally qualified faculty that can be found in today’s business 4 percent of the MBA students schools. (Source: AACSB International Business School Questionnaire)

TeACHING & LEARNING “Regardless of how comfortable administrators, faculty, and students may be with the traditional functional silos, most recognize that an inte- Words grated approach to learning is more relevant to the challenges of WISDOM businesses now face.” — Stephen A. Stumpf and Walter G. Tymon Jr., “Connecting the Dots,” January/February 2002 (then and now, both with Villanova University in Pennsylvania)

BizEd November/December 2011 53 GMAT Goes Global

175,000 116,546 150,000 130,508 127,061 175,000124,2370 126,132 119,212 117,321 113,704 109,852 110,696 116,546 125,000150,000 130,508 127,061 124,2370 126,132 119,212 117,321 135,105 136,918 100,000125,000 113,704 109,852 110,696 120,825 enrolled in U.S. schools had non- 108,898 141,646 101,990 101,756 135,105 136,918 U.S. citizenship in 2001. That num- 75,000100,000 88,292 92,530 120,825 108,898 86,500 141,646 101,990 101,756 ber is 13 percent in 2011. In 2001, 50,00075,000 92,530 88,292 86,500 3 percent of full-time faculty at 25,00050,000 AACSB member schools in the U.S. 25,0000 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 were non-U.S. citizens without per- 0 manent visas. In 2011, that num- 2001-02 2002-03 2003-04 2004-05US 2005-06 2006-07 Non-US 2007-08 2008-09 2009-10 2010-11 US Non-US ber had risen to 8 percent. In 2001, only 43 percent of U.S. schools In the past ten years, the number of non-U.S. candidates taking GMAC’s responding to AACSB surveys had Graduate Management Admission Test has outpaced the number of U.S. test-takers. (Source: Profile of GMAT Candidates) at least one full-time faculty mem- ber from outside the country, com- pared to 58 percent in 2011. The Financial Times’ Top 20 Globalization is occurring even faster elsewhere. In 2011, member …In 2001 …In 2011 schools outside the U.S. reported that 30 percent of their full-time France:France: 1 1 Switzerland:Switzerland: 1 1 Switzerland: 1 faculty members claimed countries Switzerland: 1 of origin other than the country Canada:Canada: 1 1 Spain:Spain: 2 2 where the schools were based; 84 U.K.:U.K.: 1 1 percent reported at least one fac- India: 2 ulty member with an origin outside India: 2 U.S.: 10 the host country. France*: 2 U.S.: 10 U.S.: 16 France*: 2 U.S.: 16 The Globalization China: 2 Of Business Education China: 2 By other measures as well, interna- tional business schools have shown U.K.: 1 tremendous growth in quantity, U.K.: 1 visibility, and reputation. For The numbers show how many top-20 schools came from which countries over instance, in 2001, only four of the the past ten years. While U.S. schools dominated the rankings ten years ago, now half of the top schools come from Europe, Asia, and the rest of the world. top 20 schools in the Financial (Source: The Financial Times Global MBA Rankings for 2001 and 2011) Times’ Global MBA Rankings were located outside the U.S. In 2011, *One school has multiple locations in France and Singapore. half of the top 20 schools—includ-

teaching & learning “Invariably, there will be some resistance to interactive teaching—from both students and teachers. It’s easier for a professor to prepare a lecture, go into the class, and pour the knowledge into students’ brains. Also, it’s Words easier for the student to copy it down and regurgitate it back on a test. of WISDOM But what we want is not necessarily what we need.”

— Yezdi K. Bhada, “Top of the Class,” November/December 2002 (then with Georgia State University, now retired)

54 November/December 2011 BizEd The Five Biggest Program Increases Facts and Figures 2001–2001 2010–2011 n In 2001, the largest known private Undergraduate donation to a business school was $62 Entrepreneurship 21.5% 27.0% million, given in 1999 to the University Supply chain/logistics 10.6% 14.9% of Virginia’s Darden Graduate School of MA Specialist Business Administration by Frank Bat- ten Sr. By 2011, at least five gifts had Management 11.1% 15.0% surpassed that record, the largest being Real estate 4.1% 7.7% the monumental $300 million given Finance 28.7% 31.5% by the David G. Booth family in 2008 to the University of Chicago’s Booth ing three that weren’t even on the scores how much management School of Business. top 100 list in 2001—are located education has globalized in the (Source: AACSB International Resource Center) outside the U.S. Others absent ten past decade. A comparison chart years ago, but now on the list, compiled by the Graduate Manage- n The demographics of GMAT test include schools in Argentina, Costa ment Admission Council tracks takers appear to be skewing younger. Rica, India, South Africa, South the citizenship of individuals who According to GMAC, the number of Korea, Germany, and the United have taken the GMAT test in the people over 30 who have taken the Arab Emirates. Those newcomers last ten years. During 2000–2001, GMAT test has remained fairly flat from are crowding out the old: Nine about 20,000 more Americans than 2000–2001 to 2009–2010. There has schools in the top 20 in 2001 were non-Americans took the test; but been some fluctuation among those no longer there in 2011. by 2009–2010, non-U.S. test takers in the 24-to-30 age range—probably What’s also interesting is the outnumbered those from the U.S. influenced by ups and downs in the number of today’s high-profile economy. But there has been significant business schools that now have Program and Enrollment Trends growth among those younger than 24 multiple international campuses, Globalization isn’t the only story from just over 25,000 test takers annu- a situation that was much less when it comes to the changing face ally to around 75,000. This may suggest common in 2001. For instance, of business education. AACSB’s that more students are heading straight INSEAD has locations in France, annual Business School Question- into their MBA studies from BBA pro- Singapore, and the United Arab naire yields insights into the types of grams or other undergrad degrees. Emirates; CEIBS has locations in programs that are gaining and losing (Source: Profile of GMAT Candidates) China and Ghana. In addition, the popularity. (All the following num- Fuqua School of Business at Duke bers are drawn from a controlled set n In the past ten years, the number of University has launched efforts of 376 schools that participated in AACSB member schools offering online to develop a “global campus net- AACSB’s BSQ both in 2001–2002 programs has increased at almost every work” with locations in several and 2010–2011. This set represents level. From 2001 to 2011, the number countries, including the U.K., the only U.S. schools, since schools out- of schools with online undergraduate UAE, India, Russia, and China. side of the U.S. did not participate in programs jumped from 1.4 percent to Yet another measure under- the BSQ in 2001–2002.) 9.3 percent. For generalist master’s degree programs, the number went from 7.8 percent to 19.1 percent; for General Business Degrees/Concentrations specialist master’s degrees, from 4.0 to Undergraduate MBA/MA MA Specialist Doctoral 14.7 percent. Only online doctoral pro- Generalist grams registered a small decline, going from 0.9 percent to 0.0 percent. 2001–2002 40% 67% 4% 3% (Source: AACSB’s Business School Questionnaire) 2010–2011 49% 75% 5% 15%

BizEd November/December 2011 55 Programs Experiencing Decreases Field/Discipline Undergraduate MBA/MA MA Doctoral 2001–2011 Generalist Specialist 2001–2011 2001–2011 2001–2011 CIS/MIS 70%→60% 36%→23% 39%→28% 64%→43% Across all program levels, the Production/ 26%→17% 14%→8% 6%→4% 42%→20% operations major trend is the rise of general management business degrees and concentrations. It seems likely that business schools Enrollment by Degree have been consolidating programs and majors so they can offer the 2001–2002 2010–2011 greater student population access Degree level Full Time Part Time Full Time Part Time to general business programs, while Undergraduate 84% 16% 86% 14% beefing up concentrations in specific Master’s generalist 40% 60% 45% 55% areas that play to their strengths. Master’s specialist 48% 52% 68% 32% While there were increases in certain program specializations, Doctoral 87% 13% 91% 9% they occurred in only a few disci- plines, tended to be small, and were to supply chain management. The specialized disciplines where they unevenly represented across levels. fluctuations in CIS/MIS programs expect to find better job prospects Niche specializations showed the undoubtedly were influenced by after graduation. strongest gain at the master’s level, the dot-com boom, which led to where total enrollment in special- inflated numbers of programs, and Now and Later ist programs rose from 21 percent subsequent bust. Business schools are not only in 2001 to 27 percent in 2011. Another interesting trend responding to changing enroll- A handful of undergraduate pro- revolves around changes in full- ment patterns and the demands of grams also saw gains. time and part-time enrollments. globalization, they’re also adapt- On the other hand, many fields, While the number of students pur- ing to other trends, such as the such as CIS/MIS and production/ suing specialized full-time degrees pressure to offer more courses operations management, saw has soared in comparison with the online and the changing demo- drops at all program levels. relatively steady enrollment rates graphics of student bodies. It is important to keep in mind in other degree categories, enroll- And ten years from now, they’ll that, during this period of time, ments in part-time programs have be reacting to new pressures categories have evolved, and shifts dropped 20 percent. One possible and unexpected shifts in market in program offerings may be the explanation is that more member demand. A survey of AACSB mem- result of changing boundaries schools are offering more full- bers in 2021 may contain numbers between disciplines. For example, time programs. But another likely that are very similar to the ones JESUITS POWER UP production/operations manage- explanation is that more unem- collected here—but it’s a sure bet ment most likely has been affected ployed individuals are enrolling in that some of the new percentages by growth in programs devoted full-time programs—and choosing will surprise us all. THEIR BLOOMBERGS

Xavier’s part-time MBA program continues to set itself apart from its competition. How? Ethics & Corporate Social Responsibility Our Fifth Third Bank Trading Room is great example. This unique classroom with its “Sustainable enterprise is a lot like globalization was ten or 15 years ago. 44 Bloomberg terminals allows students, faculty, alumni and entire MBA classes to use In the early stages, business schools handled it by hiring a few faculty real-time data and endless research options to study markets and make strategic who were supposedly specialists, and they had one separate class on Words decisions that impact today’s global business environment. global enterprise. In time it became integrated. And I think that’s what will happen here. There’s really no other way.” of WISDOM A better MBA for a better world. That’s the power of X. — Stuart Hart, “Taking Responsibility” (then with the University of North Carolina in Chapel Hill, now with Cornell University in New York) Learn more about how the Xavier part-time MBA program is setting itself apart at: WILLIAMS COLLEGE www.xavier.edu/mba OF BUSINESS

56 November/December 2011 BizEd Questions

Business educators will face difficult questions in the coming years about how to strengthen their industry in uncertain times. But there are many promising answers— some presented here—if schools are willing to change.

by John Fernandes

oday, there are more than 13,700 business schools in the world, about three times the number that existed 25 years ago. But just think of the global developments that have increased the demand for management T education so dramatically—the breakup of the Soviet Union, the surge of industry in China, the economic growth in Brazil and India, the increased importance of emerging markets. Our industry has evolved tremendously to produce graduates whose expertise and entrepreneurial spirit are essential to fueling global economic growth.

58 November/December 2011 BizEd es g a m s/Glow I s/Glow Plu d boar d Moo

BizEd November/December 2011 59 till, growth alone won’t enable business schools to meet the needs of business in such an increasingly complex political, technological, and culturally rich global landscape. It’s not Senough for business schools to produce the volume of students the world needs. They also must provide the right kind of high- quality graduates their markets demand, regardless of their missions, size, budgets, or geographical locations. Whether earned from an faculty by supporting Bridge Pro- internationally ranked school, a small regional program, or brand- grams, which transition academics new school in an emerging economy, a business degree must remain a from other disciplines into busi- hallmark of a strong and skillful leader. ness scholarship. These programs That objective, however, has become even more difficult to are offered through schools such achieve in 2011 than it was in 2001. Business schools today are as Virginia Tech, the University of being asked to expand and reinvent their programs when so many Toledo, the University of Florida, have seen their funding decrease. They must teach an ever-expand- and Tulane University in the U.S., ing range of skills when students are demanding shorter and more and Grenoble Ecole de Manage- convenient formats for program delivery. And they must find aca- ment in France. Such efforts add demically qualified faculty when those faculty are scarce. to the ranks, but still make only a That leaves the industry asking the obvious question: How? small dent in the problem. Business educators face not only big questions, but also big opportunities. They can adopt innovative approaches to teaching Possible Answer: and faculty development and join forces in ways that many schools Undergraduate Tracks never have before. It is my belief that by sparking dialogue, trading To the Doctorate ideas, and embracing educational innovations, business schools can advance management education as far in the next decade as they The traditional model for the doc- have in the last. torate degree does not have to be the only way to achieve academic excellence. Academic tracks for undergraduate students could Question: it takes to complete a PhD so provide a nontraditional but effec- How Do We Find great, the industry cannot produce tive alternative. Such tracks could Excellent Faculty? enough doctorally qualified faculty shorten the time it takes to com- to serve the needs of schools in the plete a doctorate, reduce costs, pre- Business schools have been dealing developed world, let alone those in serve academic rigor—and, most with the doctoral shortage for emerging markets. important, significantly increase the many years—and the shortage is Moreover, the scarcity of AQ rate of PhD production. likely to worsen. Conventionally faculty allows them to command Through such tracks, under- structured doctoral programs, our salaries that can strain the budgets graduates could be prepared for primary source of academically of even the richest institutions. an academic orientation earlier qualified (AQ) faculty, represent a It’s not unusual for an accounting in their careers. As a result, upon long-held tradition and have offered professor teaching two courses in a receiving their bachelor’s degrees, incredible experiences for academics nine-month academic year to earn they could be only two or three for many years. Unfortunately, the equivalent of US$175,000. Not years away from completing their these programs can be lengthy— surprisingly, that puts AQ faculty PhDs, including their dissertations. students take seven years, on effectively out of reach for less Some believe that undergradu- average, to complete their doctoral prosperous schools. ates aren’t yet ready to pursue degrees. That rate of production The call for schools to cre- serious research. That may be true. is insufficient to produce enough ate more doctoral programs with But they are ready to develop their graduates to meet demand. larger cohorts has gone largely research skills and prepare for the When we take into account the unheeded. Many schools are under- rigors of an academic career. Once growth in business school forma- standably hesitant to begin new they enter graduate school, they tion in developing nations, the doctoral programs or expand exist- could hit the ground running. shortage is of even greater con- ing ones because they are so expen- This model would offer business cern. The size of existing doctoral sive to maintain. AACSB has tried schools three significant advantages. programs is so small, and the time to increase the numbers of AQ First, such a model would gener-

60 November/December 2011 BizEd ate more AQ faculty over the long Possible Answer: term and help business schools at New Quality all levels more easily maintain aca- Assurance Products demic quality in their programs. Second, undergraduate academic Today’s accrediting bodies have tracks would expose students to the the potential to serve all manage- possibilities of an academic career percent are not accredited by, nor ment education institutions, but much earlier in the career selection do most maintain a membership only by designing quality assurance process—currently, most faculty do with, any international accreditation standards that meet the needs of not broach the topic of doctoral organization. Many of these schools our growing industry. For instance, study until well into the MBA pro- are self-developing their curricula AACSB International is currently gram, when many business students’ on the boundaries of the industry. working to design such a product plans are already set. Finally, under- What might critics say about a to apply primarily to schools in graduate academic tracks eventually discipline in which the vast major- the developing world. Our objec- could become an efficient faculty ity of graduates are produced by tive is not to dilute the power of development solution for schools in educational providers that do not accreditation by any means. On the emerging markets. follow generally accepted stan- contrary, we want to strengthen dards? Many people may begin to our credential by doing more to Question: question the quality of those grad- ensure the quality of graduates from How Do We Ensure the uates. This situation threatens to schools in those 200 countries, Quality of Graduates? dilute the value of business degrees including those in emerging mar- granted by all institutions. kets. A new quality assurance mech- In the coming years, management Our current systems of quality anism—one that better suits the education may face a bigger chal- assurance perpetuate the problem. teaching missions of these schools— lenge than simply finding qualified Many accreditation standards rely would help them design curricula faculty. The industry also will face heavily on the intellectual contri- that meet industry standards and an influx of graduates from new butions of AQ faculty, which are provide motivation for them to business schools, many of which generally found in countries that engage in continuous improvement. are operating outside of interna- produce research-oriented PhDs. More important, it could do so tionally accepted standards of ped- And those countries, in large part, without competing with our full agogical practice. To help ensure are found in the developed world. AACSB accreditation standard. the quality of graduates produced That creates a system where the There’s a lot more going on in by these schools, the industry majority of schools in Africa, India, management education than what’s requires new quality assurance and other economically emerging happening at the top schools in the products that meet the needs of the regions are essentially locked out world. In fact, many schools with growing community of business of the quality assurance process. low ratios of academically qualified schools in the developing world. There is no doubt that the intel- to professionally qualified faculty Consider this: All AACSB-accred- lectual contributions of AQ faculty have an incredibly high impact on ited schools represent 41 countries, are critical to management education education—and on the economic but schools in need of quality and a cornerstone to many business growth of their regions. assurance products and continu- programs worldwide. But should That impact will only become ous improvement opportunities are every quality assurance mechanism more important in the coming located in 200. Even when taken available to business schools empha- years. Approximately 250 million together, major accrediting bod- size doctoral faculty and scholarly people in a sample of 59 econo- ies such as AACSB International, production? I don’t believe so. mies were engaged in “early-stage EFMD, and AMBA accredit fewer Excellent teaching and educational entrepreneurship” in 2010, accord- than five percent of the world’s outcomes can be accomplished by ing to the Global Entrepreneurship business schools. The remaining 95 non-AQ faculty as well. Monitor’s 2010 Global Report

BizEd November/December 2011 61 sponsored by Babson College in it much easier for schools to find similar concerns: How can their the U.S. and Universidad del Desar- meaningful partnerships. Currently, schools pack a traditional two- rollo in Chile. Among this group, with so many business schools year MBA program with every- 63 million expect to hire five or worldwide, there is no easy way to thing employers want graduates more employees in the next five determine the quality and missions to know? How can they teach the years—and 27 million expect to of schools that now operate outside core disciplines, along with soft hire 20 employees or more. That of our accreditation system. For skills such as social responsibility is a powerful engine for economic instance, a small school in the U.S.— and ethics? How can they fit in growth. It’s at this level—in small even if accredited—may find it dif- meaningful global experiences and entrepreneurial enterprises with ficult to get the attention of a poten- internships? How do they improve relatively few employees—that busi- tial partner in China. A more robust students’ communication and inter- ness education can have its highest quality assurance system could make personal proficiency, and inspire impact. Business schools are in the it that much easier for schools to them to be more creative, inno- best position to produce a new gen- find others across the world with vative, and reflective? And how eration of entrepreneurs who will similar missions and attributes. do business schools teach all of help advance global prosperity. Even though different schools these things even as their students With new quality assurance have different missions, I believe are demanding shorter programs mechanisms, we can create a com- that most schools have similar and their resources are becoming munity that does not lock out objectives—to produce graduates increasingly constrained? schools that lack the resources to with the expertise that employers hire AQ faculty. Instead, we can want and that their regions often Possible Answers: invite them into our conferences, desperately need. By creating qual- • Interuniversity Alliances seminars, and forums, and offer ity assurance products that serve a • Technological Adoption them recognition when they align wider range of needs in the market, • Lifelong Learning their programs with generally accreditation organizations can accepted educational standards. help business schools better achieve Business schools, no matter their And we can do so while still allow- their individual missions while con- size, location, or budget, have the ing all schools to differentiate them- tinuing to advance the industry. ability to expand their teaching and selves in the marketplace. collaboration activities significantly. New quality assurance mecha- Question: They need only look beyond their nisms also would offer another How Can We campuses—and their students’ distinct advantage to all schools, Do It All? graduation dates—to teach students whether they’re located in Latin everything they need to know. America or Africa, Eastern Europe Talk to leaders at business schools Develop interuniversity alli- or India. Such systems would make at all levels, and they’ll express ances. Partnerships are becoming

The Future of Business Schools “Twenty years from now, I don’t expect us even to have university degrees. Instead, I think on the wall behind people’s desks will be a series of cer- tificates that come from their courses, mostly online, that fulfill specific Words needs relative to their various projects.” of WISDOM — Tom Peters, “Tom Peters: Uncensored,” May/June 2002 (then and now, author and business guru)

62 November/December 2011 BizEd increasingly commonplace in campus more frequently. the industry. But it may be They could take courses time for business schools to at all three in person or develop fewer, more multifac- through the use of digi- eted alliances. tal technologies, or even Two years ago, Babson earn joint degrees. College in Wellesley, Mas- Such alliances also sachusetts, formed just such a would allow schools collaborative relationship with to expose students to Wellesley College, a nearby cohorts in different parts liberal arts institution, and of the world in long- F.W. Olin College of Engineer- term interactions, rather ing in Needham, Massachu- than in only a single setts. The alliance formalized course or exchange. Stu- an existing arrangement that dents would have more allows students enrolled at opportunities to use the one institution to take courses electronic communica- at the other two. Students at tion tools that simulate all three schools also work global business environ- together on projects and share ments. And, by gradua- campus services. tion, students would be es

At a press conference g more intellectually and a announcing the agreement Im psychologically ready to among the schools, Richard do business in a range of /Getty Miller, president of Olin Col- n geographic regions. Mala

lege, said that the alliance was d Some business

the “celebration of an intent Davi schools already have … to do something really spe- taken steps in this direc- cial that none of the colleges can when schools establish a wide tion. Although it is not on three do alone.” That statement reflects array of partnerships, they can continents, the TRIUM Global a struggle that most business offer students and faculty more Executive MBA program is a cur- schools are facing today—how to varied global experiences. But ricular collaboration between do it all, even if their strengths lie unless schools have the resources New York University’s Stern elsewhere. The Babson-Wellesley- and personnel to manage and School of Business in the United Olin partnership is an example develop that many partnerships States, London School of Eco- of how schools with different but effectively, those experiences may nomics and Political Science in complementary programs can share not be as rich as they could be. the United Kingdom, and HEC the resource burden and expand Tri-continental alliances—simi- Paris in France. OneMBA, an educational opportunities for stu- lar to the Babson-Wellesley-Olin executive education program that dents in significant ways. arrangement, but on a global spans four continents, is an alli- What such alliances can help scale—would allow schools to ance between five schools: the business schools achieve on a local create economies of scale and Chinese University of Hong Kong level can also work on a global take better advantage of each in Asia; the Rotterdam School of level. Today, it’s common for busi- other’s strengths. For example, Management at Erasmus Univer- ness schools to have a large num- a tri-continental collaboration sity in Europe; Escola de Admin­ ber of international partners. But between schools in Europe, istração de Empresas de São Paulo is that necessarily the best model Japan, and the U.S. could allow da Fundação Getulio Vargas in for global education? It’s true that students to travel from campus to South America; and Tecnológico

BizEd November/December 2011 63 students’ educational needs. Take advantage of technology. Small schools may not be able to afford to send students all over the world, but they still can take advantage of an interuniversity model. By using videoconferenc- ing, podcasts, video streaming, and online collaboration tools, schools on different continents can collaborate to design global courses, capstone experiences, and consultancy projects that allow students to mingle and work with their counterparts in other nations in the same virtual space. In the process, students would not only become sensitive to global issues, but also learn the nuances of global es

g teamwork. ma I Students also could take online courses at partner schools and be taught by an international team of

Corbis/Glow Corbis/Glow faculty. Schools could invite interna- de Monterrey Graduate School connections that deepen over tional faculty to teach their students of Business Administration and time. Different business schools and collaborate on research projects Leadership and the Kenan-Flagler could use the model not only for with their professors. Travel is one Business School at the University executive education, but also for way to help students develop global of North Carolina at Chapel Hill, undergraduate and masters-level mindsets, but it is not the only way. both in North America. programs. They could collaborate Technology offers all schools oppor- These programs fulfill many of to create entire degree programs or tunities to develop global programs the objectives of a tri-continental standalone courses. Fewer, stronger at lower cost. alliance, the most important of alliances can create programs that Emphasize lifelong learning. which is to create in-depth, ongo- have staying power and that help Many schools are finding that it’s ing, and dedicated international individual schools better meet their incredibly difficult to fit a pantheon

Educating Tomorrow’s Executive “The world of management education has never been more exciting, diverse, and full of possibilities than it is right now.” Words — Jerry Trapnell, “A World of Opportunity,” September/October 2002 of WISDOM (then dean at Clemson University in South Carolina, now Chief Accreditation Officer of AACSB)

64 November/December 2011 BizEd 11-MMr-0978 Biz-ed Ad_layout 1 9/16/11 1:58 PM Page 1

SINGULAR DRIVE, COOPERATIVE DeDICATIoN.

“My Drexel LeBow MBA prepared me for a career motivated by change, transformation and success.” — ANGELA DOWD-BURTON LIVE IT®

TheDrexelLeBowMBA.com AngELA DOwD-BuRTOn ExEcUTIVE DIREcTOR, PhILADELPhIA OffIcE Of EcONOMIc OPPORTUNITy DREXEL LEBOW MBA ’79

The Drexel leBow MBA

of knowledge into a single program. business schools transformed Business schools can achieve But why should graduation be the themselves from trade schools that goal by finding innovative end to students’ learning? Busi- into strong, academically driven ways to achieve traditional goals. ness schools can cover all the skills institutions that have become an For instance, through such ideas employers want and more if they do integral factor to the world’s eco- as undergraduate academic tracks, so over a graduate’s entire career. nomic growth. Today, an MBA they can supply more of the AQ During their degree programs, from a highly ranked school is faculty they need. Through part- schools can make sure that students widely recognized as an intellec- nerships, they can help each other understand that learning is never tual achievement, an indication cover more educational ground. done. Once students graduate with that the graduate will make qual- Through quality assurance, they a strong foundational MBA, they ity contributions to the business can expand the universe of con- can continue to earn certificates in world and society. tinuously improving business entrepreneurship or global leader- Business schools have built a schools. ship as their careers demand that deeply successful model over the One school can’t do everything, specialized knowledge. last 50 years. But as with any but thousands can do anything. I technology or system, what served see years of innovation ahead for Final Question: us 50, 30, or even ten years ago management education, as schools How Do We Change? may not serve us in the future— overcome the industry’s biggest at least not without adaptation. challenges. In so doing, our indus- In 1959, Robert A. Gordon and Today, business schools have an try will continue to do what it James E. Howell wrote the now- opportunity to transform their does best—produce graduates who famous Ford Foundation report industry again, but this time not are thoroughly prepared to serve that leveled harsh criticism at the because their output is low qual- society by serving business. quality of business schools—they ity. Quite the contrary, this time wrote, essentially, that there was it’s because they want to assure John Fernandes is president and no quality at all. That report that their current high quality out- CEO of AACSB International in spurred widespread reform, as put continues to be exceptional. Tampa, Florida.

BizEd November/December 2011 65 research

Hong Kong to nearly 40 countries—and infected more than 8,400 people—in a matter of weeks. Eleven percent of its victims died. “The failure of central (public health) agencies to detect and manage SARS was generally attributed to weak disease surveillance mechanisms,” the authors write. If officials had received information about the outbreak sooner, they add, the disease could have been contained more quickly. In response to the SARS epidemic, many government agencies dedicated large sums of money to improving IS so that health officials could more quickly identify EIDs. However, the authors argue that because EIDs spread in such complex Managing the patterns, current systems still may leave health officials unprepared to prevent a pandemic. Next Pandemic The current centralized response sys- tems to outbreaks can send too much In the recently released blockbuster film Conta- data through too narrow a channel, the gion, a deadly virus spreads around the world within researchers say. “Public health practitio- days, killing everyone who is not immune. Entire cities ners experience difficulty in dissecting Hsinchun Chen are quarantined, social order breaks down—it’s a plot the meaning behind frequent surveil- tailor-made for a Hollywood thriller. lance alerts and often feel overwhelmed But according to a recent study, the scenario is all by the volume of the alerts,” they write. too plausible. Just a handful of infected individuals As a result, officials could be too slow to taking international flights could spread an emerging respond to the next global health threat. n se infectious disease (EID) worldwide within hours. How For that reason, the researchers recom- ekla many people die in such a pandemic depends on how mend a comprehensive response framework n well health officials can identify and respond to its that includes both a centralized global system

initial signs, say the study’s five authors. They call for and a “loosely coupled” system for gather- Thomas Ve improved information systems (IS) that incorporate a ing, interpreting, and sharing public health Susan Brown concept called “loose coupling” to prevent pandemics. data. In information systems, a loosely cou- The researchers include Yi-Da Chen, a doctoral pled system is one in which each component has little or student in management information systems (MIS) at no knowledge of the other components. the Eller College of Management at the University of In the context of a health crisis, loosely coupled IS Arizona in Tucson; Susan Brown, associate professor would allow local agencies to respond to potential out- of MIS at Eller; Hsinchun Chen, professor of MIS and breaks before receiving explicit directives from larger director of the University of Arizona’s Artificial Intelli- national or global organizations. While a centralized gence Laboratory; Paul Jen-Hwa Hu, associate professor global system is critical for large-scale pandemics, the in the department of operations and information sys- authors believe that loose coupling could increase the tems at the University of Utah’s David Eccles School in likelihood that local clinicians can stop an outbreak Salt Lake City; and Chwan-Chuen King, a professor in before it leaves their regions. the Graduate Institute of Epidemiology in the College of Their paper, “Managing emerging infectious diseases Public Health at National Taiwan University in Taipei. with information systems: reconceptualizing outbreak The research team examined the world’s reaction to management through the lens of loose coupling,” was the 2003 outbreak of Severely Acute Respiratory Syn- published in the September issue of Information Systems drome, or SARS, in Taiwan. According to reports from Research, the journal of the Institute for Operations the World Health Organization, SARS spread from Research and the Management Sciences.

66 November/December 2011 BizEd Many Execs Are Blind to Risk

The often catastrophic results that occur when corporate boards and executives pursue financial growth at any costs are well-documented in the histo- ries of companies such as Enron and Lehman Brothers. But a new report finds that these executives were inade- quately prepared to gauge the risk of their actions. They International Work were, in effect, “risk blind.” “Roads to Ruin” was conducted by researchers at Can Slow Down Careers Cass Business School at City University London in the United Kingdom on behalf of London-based risk man- As much as companies value international experience, agement association Airmic. For the report, researchers executives who have worked on international assignments examined 23 companies that experienced a crisis with may take longer to advance to the CEO’s position. potentially catastrophic outcomes. These companies, In a recent study, Burak Koyuncu, assistant professor each with pre-crisis assets totaling more than US$6 of management and strategy at Business School trillion, included heavy hitters such as AIG, Arthur in France, and Monika Hamori, professor of human Andersen, BP, Northern Rock, and Cadbury Schweppes. resource management at IE Business School in Madrid, Of the 23 firms, three completely collapsed, three were Spain, sampled CEOs of the 500 largest corporations in rescued by government, and 16 had executives who Europe and 500 of the largest corporations in the United suffered financial penalties. In four cases, executives States. In this group, 40 percent of European CEOs and received prison sentences for their actions. Shareholders 24 percent of American CEOs had international assign- of nearly all the firms suffered severe losses. In all, 20 ment experience. CEOs and chairmen lost their jobs. The authors found that the longer these executives Researchers found that catastrophic corporate spent outside their home organizations, the more slowly failures often have in common seven factors, which they reached the CEO position. The authors note that may seem disconnected a company’s foreign operations often place executives until after damage has on the periphery of the organization’s activity. While on been done. They include assignment, these executives also are separated from their non-executive directors headquarters’ resources and information, as well as from (NEDs) with little or no their social networks. ability to monitor and Even so, international experience is more likely to be control executives; blind- on a new CEO’s résumé today than in the past. In 1993, ness to inherent risks to only 7 percent of newly appointed CEOs had interna- business model or reputa- tional experience, compared to 18 percent in 1998 and tion; inadequate leader- 44 percent in 2003. ship in areas of ethos and The authors conclude that it is important for CEOs culture; defective internal to have had some international experience. However, communication and flow they recommend that professionals whose sights are of information; organi- set on the CEO’s office accept fewer international zational complexity and assignments, accept shorter assign- change; inappropriate ments, or gain international experi- incentives; and a “glass ceiling” effect that keeps risk ence as visitors rather than as expa- managers from addressing the risky behaviors of triates. Those who must take longer top execs. international assignments should In the pre-crisis environments of many of these firms, stay in continuous contact with their risks were not even discussed due to some or all of these home offices and encourage visits factors. That was true even when risks were appar- from headquarters personnel to ent to others within the organization. The report calls maintain their social networks. for NEDs to do more to discover this information, for “Career advancement in large companies to include those potential pitfalls in their organizations in Europe and the risk plans, and for the risk and internal audit profes- United States: Do international assignments add value?” sional community to develop new skills to work with was published in the International Journal of Human executives. Resource Management, Volume 22, No. 4.

BizEd November/December 2011 67 research

diversification increases risk exposure because of common exposure to market tail risk, which refers to the risk that a portfolio will move more than three stan- dard deviations from its current price. “These funds are not an insurance policy against market tail risk,” says Brown. The authors say that the added risk of overdiversified FoFHs can lead to lower Stephen Brown returns even in stable markets. Managers

Dave Cutler/CorbisDave must pay more to conduct due diligence on a larger number of holdings—often up Diversification May Not to US$50,000 per report. That expense is easily absorbed by large FoFHs, but will THE POOLE COLLEGE OF MANAGEMENT AT Pay for Funds of Funds quickly erode the returns of smaller port- Many believe that diversification protects the value folios, explains Gregoriou. He adds that of hedge funds in a volatile stock market. However, this finding comes as a surprise to FoFH NC STATE UNivErSiTy researchers from New York University’s Stern School managers who have long believed that Greg Gregoriou of Business and the State University of New York’s greater diversification protected their port- iS COMMiTTED TO ADvANCiNG SUPPLy CHAiN EXCELLENCE College at Plattsburgh School of Business and Eco- folios from market extremes. nomics find that well diversified funds of hedge funds Given these results, the authors note Since 1999, our Supply Chain Resource Cooperative (SCRC) has provided more than 1,200 (FoHFs) actually perform worse in extreme market their concern that many FoFHs in their conditions than their less diversified counterparts. sample—34 percent—held 25 or more undergraduate and graduate students real world experience that has helped them to launch careers The study was conducted by Stephen Brown, a underlying hedge funds. Many even held as supply chain professionals. Collectively, they have completed 330 projects for nearly 40 Fortune finance professor at NYU; Greg Gregoriou, a finance more than 50. The returns of this group professor at SUNY; and Razvan Pascalau, an associ- lagged behind their counterparts with only 500 companies. This applied learning process is led by Dr. Robert Handfield, Bank of America ate professor of finance at SUNY. The three research- 10 to 20 underlying funds. “Overdiversi- Distinguished University Professor of Supply Chain Management and 2011 recipient of the Emerald ers examined a new database of 3,767 FoFHs. The fication,” they conclude, “leads to dimin- Razvan Citation of Excellence Award, and our supply chain faculty. Read about the SCRC model in the database is the first to separate two important values ished returns and in extreme cases, death Pascalau of FoHFs: the effects of diversification (the number of of the fund, particularly when it becomes November issue of Interfaces. underlying hedge funds) and the scale (the magnitude too expensive to perform necessary due diligence.” of assets under management). “Diversification of funds of hedge funds: Is it pos- The authors found that once an FoHF holds more sible to overdiversify?” is forthcoming in the Review than 20 underlying hedge funds, the benefit of diver- of Asset Pricing Studies. The full paper is available at sification decreases. The effect is so great that excess ssrn.com/abstract=1436468.

Competition “The growing prominence of media rankings has pushed business schools toward focusing on image management, often at the expense of substan- tive improvement. Because image has become the new currency in the Words academic realm, competition among business schools is creating a kind Visit us online at of beauty contest, with some ugly consequences for the contestants.” of WISDOM The Poole College of Management at NC State University offers undergraduate programs in accounting, business Poole.NCSU.eDU — Dennis Gioia and Kevin Corley, Your Turn, January/February 2002 administration and economics. Through its Jenkins Graduate School of Management it offers the Master of (then and now, Gioia was and is with Pennsylvania State University; Accounting and NC State Jenkins MBA programs, master’s and doctoral degrees in economics, and the Master of then, Corley was a doctoral student at Penn State, now he’s at Arizona State) Global Innovation Management. Executive education is presented through the college’s Business Collaboratories.

NC State University Poole College of Management | 2801 Founders Drive, Campus Box 8614, Raleigh, NC 27695-8614 | www.poole.ncsu.edu 68 November/December 2011 BizEd

NCSU-COM-PrintAds-BizEd-FullPage-SCM.indd 1 9/28/11 5:55 PM research

Upcoming & Ongoing

n MYSTERIES OF n FORUM ON opened the Center for Value “MEME DIFFUSION” ECONOMIC CAPITAL Delivery Innovation. The retail Why do people share Georgia State University’s marketing center will facili- one piece of information Robinson College of Business poor populations in Bangla- tate collaborations among online, but not another? in Atlanta and global insurance desh and Pakistan have greater WFU faculty and business The U.S. National Science broker Willis Group Holdings access to financial services. students, manufacturers and Foundation has awarded have co-funded the Willis The project will be funded by retailers, and other orga- US$905,000 to four infor- Research Network Economic ShoreBank International (SBI), nizations that want to help matics and computing pro- Capital Forum. The forum also with part of its US$16.9 million businesses stay ahead of con- fessors at Indiana University was founded in partnership grant from the Bill and Melinda sumer demands. The center in Bloomington who hope to with ETH Zurich’s RiskLab Gates Foundation. was started with US$500,000 discover an answer. Filippo Switzerland and the National of seed money from Inmar Inc.; Menczer, Alessandro Flam- University of Singapore’s Risk n INVESTMENT SymphonyIRI Group Inc.; and mini, Alessandro Vespig- Management Institute. The CENTER John Whitaker, founder and nani, and Johan L. Bollen forum will facilitate global col- Hong Kong University of Sci- former CEO of Inmar. aim to better understand laboration among academia, ence and Technology (HKUST) how and why information industry, and policymakers, as and the Hong Kong-based n A LOOK AT HYBRID spreads online via social well as create a technology asset management firm Value LEARNING media and data feeds, a transfer program designed to Partners Group Limited Baruch College’s Zicklin process they call “meme shorten the time required to opened the Value Partners School of Business in New diffusion.” The research- convert research into commer- Center for Investing in Sep- York, New York, has partnered ers are part of the “Truthy cially viable applications. tember. Funded by Value with Ithaka, a nonprofit dedi- team,” which last year gar- Partners’ donation of nearly cated to helping the academic nered media attention for n BOOST TO HK$10 million, the center will community effectively use creating truthy.indiana.edu. MOBILE BANKING support research and training technology, to study student The watchdog site identifies Frank Warnock, a professor at in investment management at learning in a hybrid model. In when politicians engage the Darden School of Business the HKUST Business School, the study, researchers com- in “astroturfing”—or faking at the University of Virginia in including the establishment of pared the outcomes of an grassroots support for their Charlottesville, and Veronica the school’s student-managed introductory business statis- campaigns. The site cur- Cacdac Warnock, a fellow at investment fund. tics course delivered partially rently includes animations Darden’s Batten Institute, will online and partially face-to-face of meme diffusion networks, work with mobile banking com- n RETAIL CENTER with a course delivered in a including one connected to panies bKash and UBL Omni The Wake Forest University traditional format. Results were the uprising in . on a project that aims to help Schools of Business recently due to be released in October.

Women in Business “I think any working woman in the business world or in business educa- tion is quite used to going into rooms where she knows she will be the only woman. But gradually it’s becoming not uncommon to be one woman Words out of 12 or 14.” of WISDOM

— Sandra J.N. Dawson, “Educating Women,” July/August 2002 (then master of, now professor at, the University of Cambridge’s Sidney Sussex College in England)

70 November/December 2011 BizEd Assessment Conference

March 19–21, 2012 | Houston, Texas, USA

Strategies From Peers, Advice From Experts. A diverse representation of schools participate in what has grown to be one of AACSB’s most popular and informative events—the Assessment Conference. Learn from assessment and assurance of learning examples provided by schools across the world that yield to effective solutions and immediate results. Attend this conference to learn about best practices for your academic programs. With a majority of the content presented by your peers, educators who have implemented successful programs, and assessment experts, this is your conference—by and for today’s b-schools attempting to effectively measure student performance.

Register by February 13, 2012 and save 200 USD. Learn more at www.aacsb.edu/Assessment.

Research Recognitions

The American Marketing ISB-Ivey Announces Winning Cases Association has selected F. The top ten Indian case studies have been announced Robert Dwyer to receive in the ISB-Ivey Case Competition 2011. The com- its 2011 Interorganizational petition is sponsored by the Centre for Teaching and Special Interest Group Life- Learning at the Indian School of Business in Hyder- time Achievement Award.

ges abad and the Richard Ivey School of Business at the Dwyer is the Joseph S. ma I University of Western Ontario in London, Ontario, Stern Professor of Market- low Canada. The competition attracted entries from 220 ing at the University of Cin- /G faculty representing 75 business schools. cinnati Carl H. Lindner Col- The first-place case was “INDCOSERVE: lege of Business in Ohio. Challenges in marketing tea by a co-operative magebroker He specializes in research I society,” written by Seema Gupta, assistant on buyer-seller relationships. A case study authored by Ley- professor, and B. Mahadevan, professor, at IIM- The AMA bestows the land Pitt and Adam Mills, both Bangalore. In second place was “Turnaround award based on the longev- of Simon Fraser University’s of ICRISAT: Transformational Leadership of Dr. ity and significance of the Beedie School of Business in William D. Dar” by Sunita Mehta, senior assistant recipient’s contribution to Canada, and Phuong Nguyen, professor at the Vishwa Vishwani Institute of Sys- interorganizational research, Jia-Rong Wu, and Aschwin tems and Management in Hyderabad, and Wing as well as his or her sus- van Alphen-Sato, all of the Rot- Commander S.K. Sharma, chief operating offi- tained record of research terdam School of Management cer, Indian Air Force, Centre for Leadership and excellence and service to in the Netherlands, won the Best Behavioural Sciences in New Delhi. the profession. Case Study Award at the 2011

BizEd November/December 2011 71 Curriculum and research Teaching Seminars

Teaching Effectiveness Seminar December 1–2, 2011 | Tampa, Florida March 22–23, 2012 | Tampa, Florida Taught by a master instructor, this seminar provides innovative methods and a framework for effective teaching in today’s increasingly Research Recognitions competitive academic environment. Academy of Marketing Confer- Philadelphia, has received the ence in July. Their case, called Best Early Career Researcher Curriculum Development “Marketing S#*! My Dad Says,” Award from the American Seminar—Experiential Learning: places students in the role of Institute of Certified Public Creating and Growing Project Learning Justin Halpern, creator of the Accountants. The award, which in Business Schools controversial “$#*! My Dad includes a $2,000 grant, is pre- December 9, 2011 | Tampa, Florida Says” brand, through which sented to a researcher for the This seminar will focus on how to teach Halpern uses Twitter to share body of work completed within project-based learning and integrate it into a short, humorous quotations the first five years of joining a curriculum. Discussions will emphasize the from his father. The dilemma it faculty. Cassar was honored role of coaching, client recruitment, faculty presents to students is whether for his work on the role of management, feedback and evaluations, and Twitter is merely a platform information—especially finan- will examine how to develop syllabi and course to launch Halpern’s brand, cial information—in uncertain material. or whether it can be used to market conditions. maintain the brand for the long term. Mills, a doctoral student Karlene Roberts received Teaching Business Ethics Seminar at Beedie, has been invited to the Academy of Manage- March 26–27, 2012 | Tampa, Florida publish the case in The Market- ment’s 2011 Practice Impact ing Review. Award in recognition of her Developed for faculty from any discipline, nearly 30-year career studying this seminar provides an in-depth learning Dan Dalton, dean emeritus risk management. Since 1984, experience needed to effectively introduce the of Indiana University’s Kelley Roberts has studied manage- subject of ethics to future business leaders. School of Business in Bloom- ment practices within organi- ington, has received the Dis- zational environments where Curriculum Development tinguished Career Award from errors can have catastrophic Seminar—Managing in the Academy of Management consequences. The results a Global Context for his contributions to man- of her research have been used by private organizations May 11, 2012 | Tampa, Florida agement research. The award recognizes Dalton’s advance- such as hospitals, energy Incorporating interdisciplinary conceptual ment of research methods and companies, and financial insti- frameworks while focusing on effective the impact he has had on the tutions, and U.S. government techniques, this seminar provides experiential field. Dalton, who is now the agencies such as the Navy’s learning pedagogies to provide students with Harold A. Poling Chair of Stra- aircraft carrier operations, the a deep appreciation for cultural, regulatory, tegic Management and found- Federal Aviation Administra- political, and economic differences across ing director of the Institute for tion’s air traffic control system, countries. Corporate Governance at the the Coast Guard, the Depart- Kelley School, was the school’s ment of Defense, and NASA. For more information, visit dean from 1997 to 2004. Roberts joined the business www.aacsb.edu/seminar school at the University of Gavin Cassar, assistant California, Berkeley, in 1969. professor of accounting at the She retired from the UC- Wharton School of Business at Berkeley’s Haas School of the University of Pennsylvania in Business in 2008.

72 November/December 2011 BizEd A Downside to CSR

If a company does not choose its message of corpo- rate social responsibility carefully, that message could backfire, according to a new study. To be received well by customers, that message must line up with their understanding of the company’s brand and even their own mindsets. The research was conducted by Carlos J. Torelli, assistant professor of marketing at the Carlson School of Management at the University of Minnesota in Minneapolis; Alokparna (Sonia) Basu Monga, associate professor of marketing at the Darla Moore School of Business at the University brand associated with the concept of conservation, such of South Carolina in Columbia; and as Aunt Jemima, which implies the ideas of “tradition Andrew M. Kaikati, assistant pro- and protection of the status quo.” fessor of marketing at the Terry Col- The authors suggest that consumers often perceive lege of Business at the University of a “motivational conflict” between brands linked with Carlos Torelli Georgia in Athens. self-enhancement and the idea of social responsibility. The authors found that if a They also conclude that consumers who think in more socially responsible message comes abstract ways are more likely to perceive this conflict from a luxury brand such as Rolex, than those who think more concretely. consumers’ opinions of that brand “Given that billions of dollars are being poured into actually grow more negative. Rolex’s CSR activities, knowing which brands are more or less brand, the researchers say, is associ- likely to succeed is highly consequential,” the authors ated with the concept of self-enhance- write. They add that a luxury brand’s most well-inten- ment and connotes “dominance over tioned CSR efforts can backfire unless steps are taken to people and resources.” On the other “avoid negative consequences.” Sonia Basu hand, if that same message comes “Doing Poorly by Doing Good: Corporate Social Monga from a brand associated with the con- Responsibility and Brand Concepts” is forthcoming cept of openness, which connotes something “exciting in the February 2012 issue of the Journal of Con- and free-spirited,” consumers’ opinions remain positive. sumer Research. It is available at www.csom.umn.edu/ Apple falls into this category. The same is true for a assets/166234.pdf.

Business Insights “There are times when it looks like managers aren’t evil. You find yourself the head of Cisco or Apple Computer during their heydays, and suddenly Words it looks like you’re brilliant and kind. You’re treating your employees well of WISDOM and making money, so it must be that you can do both! But that’s an illu- sion that disappears with a market downturn.”

— Scott Adams, “Funny Business,” November/December 2002 (then and now, author of the “Dilbert” comic strip)

BizEd November/December 2011 73 technology

A Tech Retrospective

BizEd’s first issues offer a snapshot of how business education got from “then” to “now.”

Remember the goReader, an electronic device that promised to make textbooks obsolete? How about the Palm Pilot? Or even the term “handheld computer”? A decade ago, BizEd’s Technology department covered these devices as the state-of-the-art in education. While they may have disappeared, they were the precursors Google Apps for Education, have become mainstays in for technologies that would redefine education. Many many business classrooms. other trends that our Technology department featured E-learning. In July/August 2002, BizEd pub- in BizEd’s first few issues had more staying power: lished “Setting the Standards for E-Learning,” which E-readers. In BizEd’s inaugural November/Decem- explored how educators were still struggling to dis- ber 2001 issue, the article “No More Pencils, No More cover how to maximize e-learning’s effectiveness. Books” touted the functionality of the aforementioned “Adding and editing content is now much easier than goReader, a 10.4-inch tall device that could hold up it was in the early days,” said Kristi Emerson, then to 65 textbooks in its memory. Students could use a public relations manager for eCollege, an e-learning special stylus to take notes, highlight passages, and cut platform now owned by Pearson. Even so, she and and paste text to an electronic clipboard. The cost? others quoted in the article noted that professors still Just $900. The only thing that goReader’s creators wanted a greater level of interactivity. needed was for publishers to supply the e-books. The article also mentioned that the “holy grail” of Unfortunately, the goReader was about six years ahead e-learning would be the ability to customize learning of its time. Publishers weren’t ready to release electronic experiences so that students could learn at their own textbooks, and students didn’t have $900 to spare. The speed and competency levels. “To believe that the sum goReader quietly disappeared. But it helped prepare the product of the Internet and e-learning has already been market for its successors. Amazon released the original invented would be naïve,” said Robert Pittinsky, chair Kindle in 2007; Apple released the iPad in 2010. and co-founder of Blackboard. Open source computing. In March/April 2002, BizEd Pittinsky wasn’t kidding. Friendster, the precursor to discussed open source software—free software, such as MySpace, had only just been created that year. Facebook the operating system Linux, that allowed its computer started finding friends in 2004. Today, customization code to be altered by anyone. At the time, the concept and interactivity are at the heart of most schools’ online was being heavily promoted by IBM and Sun Micro- educational programs, which they facilitate through systems. “We’re evolving from the PC model, so that collaboration tools and the universe of social media, devices students use to access information are not neces- including LinkedIn, Facebook, Twitter, and Flickr. sarily PCs,” said John Tuohy, then Sun’s higher educa- Handheld devices. That same issue included “Hand- tion marketing manager. “Open source software can be helds Come to Campus,” which focused on the utility of downloaded once, and then run from any station.” the Palm Pilot for polling students in the classroom. At In many respects, the open-source concept predated the time, Palm Inc. had provided 40 Palm Pilots to the the idea of cloud computing, in which clients use appli- Bryan School of Business and Economics at the Univer- cations and store data with companies on remote serv- sity of North Carolina at Greensboro. Each Palm Pilot ers, via the Internet, rather than on their own comput- was loaded with LearnTrac, polling software created by ers. In the “cloud,” users can access tools for e-mail, eLearning Dynamics of Washington, D.C. “LearnTrac word processing, spreadsheets, and collaboration. Free will replace many of the things we do and help us to do application suites that include these functions, such as some things differently,” a Bryan School professor said.

74 November/December 2011 BizEd “To believe that the sum product of the Internet and e-learning has already been invented would be naïve.” — Robert Pittinsky of Blackboard, in 2002 o t

Well, that didn’t quite happen. LearnTrac is no more, and Palm Pilot has been absorbed by HP. SAKUMA/AP PhoPAUL “Handhelds” evolved into smartphones and other mobile devices. But stories regarding the increased use Steve Jobs’ Legacy of polling software appeared in BizEd’s Technology pages in the years that followed, until eventually poll- Just as this issue of BizEd was going to ing students became commonplace. press, we received the news of the passing of Free online education. In January/February 2003, Steve Jobs, the founder, CEO, and visionary BizEd reported the launch of OpenCourseWare (OCW) behind Apple. Whether through iPhone apps, by the Massachusetts Institute of Technology in Cam- iPad integration, case studies on Apple’s suc- bridge. OCW would include the materials for 32 MIT cess, or analyses of Jobs’ personal leadership courses in 16 academic departments online for free. style, business education has been changed, “We’re fighting the commercialization of knowledge in directly and indirectly, by much the same way that open-source people are fight- Jobs and the company he ing the commercialization of software,” said a univer- built. Jobs also could be the sity spokesperson. most-discussed entrepreneur- Flash forward: As of July 2011, OCW offered 2,074 turned-successful CEO who courses, including full video of 46 courses. In addition, didn’t go to business school, 987 courses have been translated into different languages, by educators and industry including Spanish, Portuguese, Thai, Persian, and Chi- watchers alike. Regardless, nese. The site averages 1 million visits each month and over the last two years, boasts a total 122 million visits by 87 million users from, we’ve seen Apple products s

by its own measure, every country in the world. This change how business pro- e

year, the school made its OCW LectureHall iPhone app fessors teach and students mag ow I ow

available, which allows users to stream video lectures on learn. As John Pliniussen, a l their mobile devices, post to forums, interact with friends professor from Queen’s Uni- /G tra

via social media, and take notes as they watch content. versity in Kingston, Ontario, Te Those are just a few of the topics that appeared in Canada, put it the day after BizEd’s Technology department in our first issues. Since Jobs’ death: “Jobs was for business what the its first year, BizEd has gone from handheld computers to Beatles were to music: paradigm shifting.” It smartphones, from MySpace to Facebook, from portals seems appropriate to mark Jobs’ passing in this to apps, from the Kindle to the iPad2, from SecondLife issue, which is devoted to the transformation of to serious games. Educators are still debating what the business education. We anticipate the innovations technological landscape will look like in ten years. As on their way to business classrooms as the result for what’s happening in technology right now? The of Jobs’ ideas and products. pages that follow are a good place to start.

BizEd November/December 2011 75 technology

What’s App-enin’ At B-Schools

Today, smartphone and tablet usage among business students is almost a given. To reach stu- dents where they live—on their mobile devices— more business schools are launching their own mobile campus applications. But as with any school initiative, designing a great institutional app takes careful consideration. Educators should be mindful of several steps and possibilities as they tackle the process: Choosing objectives. Successful mobile cam- pus apps serve a triple function—they build com- munity, expand awareness of the school, and keep people informed. But they must do so without bombarding users with unneeded information. The Beedie School distributed promotional T-shirts that For that reason, business schools are defining their promoted its new campus mobile app as part of a student intended audience, choosing features, and outlining engagement contest. Each shirt has a QR code on the their objectives carefully before they jump into an back that, when scanned with a mobile phone, takes the user to information about the app. app’s design. In that way, they can ensure that users find their apps interesting and valuable. “We didn’t want to replicate or redeliver informa- searchable directories, campus maps, and details on tion that is already offered by other apps,” says Derek campus events, club activities, and course listings. It Moscato, director of communications for Simon Fraser also allows students to gather course assignments and University’s Beedie School of Business in Burnaby, Brit- materials in one place and receive campus safety alerts. ish Columbia, Canada. “We didn’t want our app to be ESCP Europe wanted its iPhone app to connect an overt recruitment tool, such as a digital brochure.” its five campuses in Paris, France; London, England; Columbia Business School in New York, New York, Madrid, Spain; Berlin, Germany; and Torino, Italy. released its iPhone app this summer, after taking six “We wanted the application to speak not only to stu- months to refine, test, and deploy it. Its goal for the dents and alumni, but also to people interested in our tool was to help make students’ academic experiences conferences and the expertise of our professors,” says as positive as possible. The app that resulted includes Hélène Allaire, the school’s events and social media

Technology “Students look at computers as if they aren’t even technology; they’re just a normal part of the environment, like the telephone or the automobile.” Words — Jason Frand, “Rethinking IT,” January/February 2002 of WISDOM (then with UCLA, now retired)

76 November/December 2011 BizEd manager. ESCP Europe’s app includes news, a monthly its app is almost as important as how well the app is calendar of events, a course portfolio, information designed. These schools let their communities know about faculty and research, locations of its campuses about the app via publications, electronic newslet- and partner universities, and a photo gallery. Students ters, and Web sites, as well as at school events and also can use the app to join the school’s online commu- student orientations. But they also emphasize that nities on various social media networks. because word-of-mouth is so important, more creative This summer, Hult International Business School, approaches may be in order. with campuses in the U.S., Europe, the Middle East, and For example, it was a student working as an intern in Asia, released Hult Connect, a free mobile app for Apple the Beedie School’s marketing and communications office devices that specifically targets Hult’s alumni network. who suggested launching a student-directed campaign, Hult Connect allows former students to find other alums says Moscato. The office acted on her advice, distributing who live and work in their cities, so they can maintain promotional T-shirts with QR codes for the app as part relationships more easily. The business school can use the of a student engagement contest. It also created postcards app to send news about alumni events and reunions. featuring the app and handed them out to incoming Teaching with apps. The design of a school’s app freshmen at the beginning of the school year. also can offer an educational experience for students. Refining designs. ESCP Europe views its first cam- That was the case for the Beedie School. A team of pus app as a work in progress, says Allaire. She has five SFU computer science and business students cre- included her contact information at the bottom of the ated Beedie’s app as a 13-week project for an interdisciplinary course, “We didn’t want to replicate utilities or “Foundations of Innova- tion” in 2010. redeliver information already offered by Jan Kietzmann, who other apps. We didn’t want our app to teaches the course, planned to make iPhone app design be a digital brochure.” a general focus for the course. But he says it was — Derek Moscato of Simon Fraser University a “natural progression” to shift the focus to creating a Beedie School app. The team ESCP Europe app’s download page with a note asking was guided in the project by Kietzmann; Moscato; Dan for feedback. She already is making adjustments for Shapiro, the dean; and Andrew Gemino, associate dean the app’s next version. Moscato uses Google Analytics of undergraduate programs and associate professor of to track how many users download Beedie’s app. Since management information systems. After the course ended, its launch in early June through August, it had received Moscato continued to work with the students to perfect 9,500 page views. He plans to track how students use the app before its release five months later in spring 2011. the app to inform the design of future iterations. “Although the project was introduced to the stu- A school might be tempted to pack its first app with dents from ‘up top,’ the students really loved the idea as many elements as possible. But overloading an app and took it upon themselves to identify where and with bells and whistles that students might not use how an app could help improve their lives as stu- could decrease its functionality and impact, says Glenn dents,” says Kietzmann. Wiebalck, associate director of technology operations, The students decided that the Beedie School app information and technology group, and interim CIO should be an information hub. They wanted it to inte- at Columbia. “Don’t try to do too much initially,” he grate the school’s Twitter and Facebook feeds with advises. Instead, start with a few features that students links to announcements about current research from say they want most—and then test, test, test to make school faculty and graduate students, says Justin Lee, a sure those features work flawlessly before full deploy- member of the student team. ment. That approach, says Wiebalck, is “how you’ll gain Getting the word out. How well a school promotes momentum for future releases.”

BizEd November/December 2011 77 technology

AACSB Launches

eNEWSLINE Live ages Im In September, AACSB International of low k/G Tampa, Florida, introduced eNEWSLINE Live (ENL), a series of live-streaming urestoc videos that address global topics and P trends in management education. Hosted by John Fernandes, AACSB’s VSU Expands Digital Text Initiative president and CEO (in photo, left), the bimonthly videos will feature experts from Virginia State University topical case studies. Moreover, business education who will provide in Petersburg has received a open source digital texts cost about insight on a variety of topics. The first US$50,000 grant from energy $20 per book, compared to $250 video, streamed in September, featured company Dominion Resources, or more for some accounting and Steve Reinemund (at right), dean of which the school will use to finance texts. The project has saved Wake Forest University Schools of Busi- expand its digital textbook pilot students more than $200,000 in ness in Winston-Salem, North Carolina. project. The Lewis School of Busi- textbook expenses so far, says Reinemund spoke on the topics of sus- ness, which launched its Digital Mirta Martin, dean of the Lewis tainability, corporate social responsibility, Instruction Project this year, will School. “Before the school adopted and ethical leadership. use the grant to purchase more digital texts, more than 40 percent For information about ENL and seat licenses for Flat World open of our students tried to get by upcoming video segments, visit www. source digital textbooks, expand- without class texts because of the aacsb.edu/enl/. ing the project from nine courses expense,” she adds. in 2010–2011 to 16 classes in The grant is part of more 2011–2012. The money also than $200,000 that Dominion will support real-time learning has donated to colleges in Cen- assessments, access to educational tral Virginia to support pro- networking, and increased interac- grams in business, skilled craft, tion among students and faculty. engineering, environmental, Instructors can tailor the digital and technical studies aimed at texts to their specific classes and resource conservation and envi- update them continuously with ronmental preservation.

online learning “Online education is already working, and it’s still primitive. Just wait until it gets good.” Words — Tom Peters, “Tom Peters: Uncensored,” May/June 2002 (then and now, author and business guru) of WISDOM

78 November/December 2011 BizEd The tweets were just one part of a Tweets for more traditional application pro- cess that included standardized test Tippie Tuition scores, work experience, under- graduate qualifications, interviews, MBA applicants often spend a and application essays. Students also great deal of time polishing their could connect their tweets to blog essays. But this summer, some MBA The Winning Tweet… entries, résumés, or expanded talking candidates accepted to the Uni- points elsewhere on the Web. versity of Iowa’s Tippie College of John Yates, a 33-year-old English “We think that by saying ‘cre- Business in Iowa City polished their instructor with Berlitz in Houston, ativity encouraged,’ we open the tweets instead. Texas, won Tippie’s Twitter compe- door and allow people to go way In July, the school announced tition with this tweet, written in the beyond 140 characters,” says Col- that it would provide a tuition form of a haiku: leen Downie, senior assistant dean award of US$37,000 to the first- of the full-time MBA program in year candidate who tweeted the Globally minded. the Tippie School of Management. most creative answer to the ques- Innovative and driven. “Social media has been shown tion, “What makes you an excep- Tippie can sharpen. to be a powerful tool for business tional Tippie MBA candidate and communication, so it makes sense full-time MBA hire? Creativity The judges noted that Yates’ tweet that our applicants demonstrate encouraged!” Following Twitter stood out because he showed cre- an ability to use it,” adds Downie. format, the candidates had to limit ativity in linking haiku, one of the “This was a way for prospec- their tweets to 140 characters. oldest forms of poetry, with Twitter, tive students to show us that they Tippie received 57 tweet appli- one of the newest modes of com- embrace innovation and are com- cations; eight of the authors were munication. Yates has chosen to fortable using the kind of media accepted into the program and con- defer his enrollment until 2012. and technology driving so many sidered for the scholarship award. changes in business.”

NEWSBYTES n STUDENTS about this study and other new mobile technologies WANT E-BOOKS ACU studies on mobile and applications that enable Three-quarters of college education can be found at “anywhere-anytime” educa- freshmen at Abilene Chris- www.acu.edu/technology/ tion. Researchers will study tian University in Texas said mobilelearning/Research. the educational potential of that they would personally tools such as location-aware purchase Apple iPads if at n MOBILE ED at MIT learning applications, mobile tion to students worldwide, least half of their textbooks With an initial gift from sensing, and augmented real- has partnered with New York were available digitally, Google Education, the Mas- ity gaming. University to identify disad- according to a university sachusetts Institute of Tech- vantaged students who meet survey. Most of these stu- nology in Cambridge has n UoPEOPLE the standards for admissions dents noted that while read- opened the MIT Center for PARTNERS UP to NYU Abu Dhabi and invite ing on paper was “easier,” Mobile Learning in its Media The online University of the them to apply. Once accept- digital materials were “more Lab. The Center will focus People (UoPeople), which ed, these students also will convenient.” Information on the design and study of offers free university educa- be eligible for financial aid.

BizEd November/December 2011 79 technology

Tools of the Trade Where MBAs Want to Work The top five job preferences of MBA graduates, according to MBA Focus’ Student Analytics Reports*: Matching MBAs Class of 2009: With the Market Consulting...... 45 percent Private equity...... 26 percent Global Focus helps employers and career advisors Venture capital...... 22 percent match job seekers with the right job openings. Investment banking...... 20 percent Investment management...... 20 percent Given the complexity of today’s job market, it can be difficult for HR direc- Class of 2010: tors, recruiters, and career advisors to Consulting...... 43 percent match the right jobs to the right talent. Business development...... 34 percent Global Focus, a recruiting manage- Strategic planning...... 26 percent ment platform from Ohio-based MBA Marketing, brand/product management....23 percent Focus, was created to simplify the process. The subscription- General management...... 21 percent based platform stores more than 60,000 résumés of busi- ness school graduates and alumni. Recruiters can search Class of 2011: for candidates according to job preference, club participation, Consulting...... 42 percent experience, geography, and citizenship. Private equity...... 24 percent “The Haas School of Business at the University of California, Venture capital...... 20 percent Berkeley, uses the program the same way employers do—to Investment banking...... 19 percent identify students by job preference, access students’ contact Investment management/brokerage...... 18 percent information, and plan appointments,” says Lisa Feldman, director of recruiting. “We use it to get an idea of what our current MBA *Graduates could choose up to three preferred class looks like as a whole.” industries. Percentages have been rounded to MBA Focus also uses Global Focus as an analytical tool nearest whole number. to track the job, industry, and geographical preferences of MBAs and alumni. Using this data, the company compiles In 2010, not surprisingly, MBA Focus saw students’ annual analytics reports that it offers to subscribers. (See job searches trend away from financial areas such as “Where MBAs Want to Work” at right.) investment banking and private equity and toward What’s next for the platform? MBA Focus now wants to nontraditional jobs in fields such as strategic planning do more to facilitate remote job interviews, says Heather and marketing. But in 2011, many students once again Krumpak, the company’s vice president of school relations. targeted the finance sector. “During the economic AACSB International Conference and Annual Meeting crisis, financial firms continued to keep their brands MBA Focus has partnered with Pennsylvania-based Interview- in front of candidates,” says Heather Krumpak of MBA Stream to integrate an interview function into its platform. Focus. “But even though these firms are recruiting For future versions of the software, Feldman of UC-Berkeley again, it’s unlikely that all graduates interested in the April 29–May 1, 2012 has two items on her wish list—a way to match students’ qualita- financial industry got jobs there. We don’t yet have the tive soft-skill attributes to companies’ corporate cultures and information about where they ended up.” The economic downturn offered one advantage for San Diego, California, USA a way to integrate social media. “Questions that would help graduates who maintained their resolve to land jobs in employers get to know students from a qualitative perspective finance, Krumpak adds. “Diehards who wanted MBAs would really round out student résumés,” Feldman says. “And because they really wanted to be in finance stood out we need a good social media solution to get our messages to firms that were hiring,” she says. “There was a better through the noise to students more effectively.” likelihood of the right talent being matched with the right company.” For information or to read the company’s analytics reports for 2008–2009 and 2009–2010, visit www.mbafocus.com.

80 November/December 2011 BizEd bookshelf

Good Strategy, Bad Strategy Author: Richard P. Rumelt Publisher: Crown Business, US$28

Rumelt’s blunt, smart, and well-written book lays it all out in the introduction: “Good strategy honestly acknowledges the challenges being faced and provides an approach to over- coming them.” Bad strategy, by contrast, “covers up its failure to guide by embracing the lan- guage of broad goals, ambition, vision, and values.” The rest of the book fills in the details. Executives can craft good strategies by being unexpected, by coordinating actions and resources, by reframing their situations, and by responding quickly to windows of opportunity. They create bad ones by setting stretch goals without identifying fundamental problems and ways to deal with them. Rumelt, a professor at UCLA, offers examples of good and bad strategists who range from Steve Jobs to CEOs at struggling firms to military leaders. His conclusion: “More than charisma and vision, we must demand good strategy.”

Designing absolutely open minds as they from legal problems; for Growth move from identifying problems develop strategies Authors: Jeanne Liedtka and Tim Ogilvie to brainstorming solutions. They to prevent future Publisher: Columbia University Press, write, “If we start by accepting all problems; and think US$29.95 the things that don’t allow us to do about the big picture. something better, our designs for They emphasize that “What would be different tomorrow will inevitably look a lot the globalization of if managers thought more like like those for today.” business has greatly complicated the designers?” ask Liedtka, a profes- legal environment, and they draw on sor at the University of Virginia, Proactive Law both European and American cases and Ogilvie, CEO of the Peer for Managers to make their points. The overrid- Insight consultancy. New products Authors: George Siedel ing message is for managers to look wouldn’t just be and Helena Haapio ahead: While most legal research functional, they’d Publisher: Gower Publishing Company, focuses on failures in the past, they be delightful, more US$79.95 write, proactive law aims for success like the Golden in the future. Gate Bridge than Most managers only think the San Francisco about legal matters during times of Credibility Bay one. While stress and conflict, but with a little Authors: James M. Kouzes the authors knowledge and preparation, they can and Barry Z. Posner acknowledge the use the law to obtain competitive Publisher: Jossey-Bass, US$27.95 importance of the businessperson’s advantage. Siedel of the University cold analysis and ingrained skepti- of Michigan and Haapio, affiliated Over the past 20 years, the cism, they believe designers add with Finnish firm Lexpert Ltd., note authors have asked more than value to any conversation about that legal issues touch all aspects of 100,000 people, “What do you new products. They present the doing business, from making sales look for and admire in a leader, idea generation process in four to writing contracts to conforming someone whose direction you stages—“What is? What if? What with laws and regulations. They would willingly follow?” Across wows? And what works?”—and urge managers to follow a four-step all continents, demographics, and insist that managers should keep plan: understand the law; learn decades, respondents list the same

82 November/December 2011 BizEd 20 characteristics, and they always hope. While support in order to achieve sig- want their leaders to be honest, the authors nificant improvement levels. … forward-looking, inspiring, and have updated Threats, power and position do competent. Kouzes and Posner, both their classic not earn commitment. They earn of Santa Clara University, explain text with new material, their core compliance. And compliance pro- that leaders can become more cred- messages remain the same. “It is duces adequacy—not greatness.” ible by discovering themselves, credibility that determines whether appreciating constituents, affirming people will volunteer a little more The Progress shared values, developing capacity, of their time, talent, energy, experi- Principle serving a purpose, and sustaining ence, intelligence, creativity, and Authors: Teresa Amabile and Steven Kramer Publisher: Harvard Business Don’t Miss Review Press, US$25

Storytelling is a fundamental human skill that leaders can use to win “The secret to amazing per- followers and that companies can employ to draw customers to their formance is empowering talented brands, says John Sadowsky in Email, Social Marketing, and the people to succeed at meaningful Art of Storytelling. But Sadowsky, a professor at Grenoble Gradu- work,” write Amabile, a Harvard ate School of Business, points out that we’re no longer gathered around professor, and Kramer, a psycholo- campfires in caves; we’re congregating on Facebook and Twitter, and gist. This means enabling work- both individuals and organizations need to understand the way stories ers to develop rich and creative get disseminated today through social media. They must “encourage cus- “inner work lives” of emotions, tomers to tell stories about their experiences with a product or service.” perceptions, and drive, because Sadowsky explains both why and how. (Altal Editions, US$35) without such inner lives they will not be engaged enough to do their No matter how many ethics classes they take in business school, execu- best. To study how tives will find it difficult to do the right thing at work because “organiza- employees react to tions do not always welcome their members’ principled actions and may, work situations and instead, present obstacles to right action.” So say Debra Comer of Hofstra how their reactions University and Gina Vega of Salem State University in Moral Cour- affect their productiv- age in Organizations. The authors and other contributors present 14 ity, the authors asked essays that examine the realities of ethical behavior in the workplace, from more than 200 people the pressures that inhibit moral behavior to the consequences that follow in diverse settings whistle-blowers. Comer and Vega voice an unshakeable conviction: “It to keep brief daily is possible, it is doable, and it is critically important to act on our values journals about events consistently and deliberately.” (M.E. Sharpe, US$89.95) that occurred on the job. They uncovered fascinating It’s not enough to have a good idea; you also have to sell it to the people details about what causes employ- who can bring it to life. In Advocacy, John Daly of UT Austin lays out ees to try harder and what makes a plan for anyone trying to convince a company to back a new product them stop caring. According to or system. While internal politics frequently block radical new ideas, the authors’ analysis, a manager’s Daly recommends that innovators communicate clearly, generate cred- job is straightforward: to facili- ibility, build relationships, and follow other key steps. He asks, “How tate progress in work people care many great ideas for lifesaving drugs, world-changing technologies, and about. When that happens, they innovative business processes have fallen by the wayside simply because write, managers “virtually guar- their proponents were unable to successfully advocate for their adoption?” antee good inner work life and (Yale University Press, US$30) strong performance.”

BizEd November/December 2011 83 idea exchange

Idea Place student Love and POWER IN engagement areas outside faculty offices Engagement NUMBERS. to encourage student- faculty interaction The Goal In the design of the school’s new Ernest A. Koury POWER IN Location Sr. Business Center, administrators wanted to Elon University’s make student-faculty interaction not just prob- REPUTATION. Martha and Spencer able, but inevitable. But when they toured new Love School of Business facilities to find examples of what they had in in North Carolina, the mind, “we did not see a model that supported Five of nine Fox departments have first schoolBizEd student engagement the way we wanted,” says been ranked in the Top 10 based on featured on this Scott Buechler, interim dean. “Faculty offices were The Love School’s Ernest A. page in November/ always far away from student gathering places.” Koury Sr. Business Center research, including a No. 1 ranking December for Management Information 2001 Systems faculty.

The Solution Student work and lounge Top-ranked programs at one of the Opened in 2006, the Koury facil- areas are world’s largest business schools: ity includes a curved three-story locatedlocated outsideoutside atrium with 12 faculty offices on facultyfaculty doorsdoors inin each floor’s exterior wall. Stu- thethe atriumatrium ofof thethe No. 6 Risk Management and Insurance, Koury Center. dent work tables, lounge areas, U.S. News whiteboards, and a collaborative computer station are located No. 9 International Business, U.S. News right outside faculty offices. No. 11 Entrepreneurship, Princeton

Considerations Review/Entrepreneur When faculty first saw the design, they were worried about Added Features No. 14 Executive MBA, Financial Times their privacy, says Buechler. To Each student engagement area includes a collaborative computer sta- allay concerns, designers includ- tion with a 30-inch monitor and high-volume printer, as well as meet- ed blinds in the floor-to-ceiling ing rooms at the periphery to allow students to gather in private. DISCOVER THE POWER OF FOX windows next to each office Students can work in two traditional computer labs, or a third col- door. Faculty can close their laborative lab with seven “pods”; each pod is equipped with five net- www.fox.temple.edu doors and blinds when they want worked computer stations that can route their individual displays to a to work without interruption. single large monitor. “This area has become the new library,” says Linda Poul- son, an assistant professor of Results accounting. “I can help students The facility’s features work just as administrators had envisioned— work through a problem on the and the engagement areas are the “pièce de résistance,” says whiteboard right outside my Buechler. “This design fosters an unpredictable flow of activity—a office. All the faculty now have small conversation can grow to a larger, more inclusive conversation open-door policies—we really with faculty and students,” he says. “Many faculty hold office hours get to know our students out- in these areas rather than in their offices. This arrangement allows side the classroom.” our faculty to be visible and present.”

88 November/December 2011 BizEd

FOX_BizEd_NovDec2011_F.indd 1 9/25/11 2:51:22 PM