Anne Sweeney of Disney-ABC on the Future of Show Business

NOVember/DECEMber 2006

Putting the Spotlight on BBA Programs

European B-Schools Take on the Rankings BizEd

46 Cont november/december 2006 e Vntsolume V, issue 7

56 I m ag e s Bek Sh a kirov/Getty

Departments FEATURES 26

6 From the Editors 18 The Change Artist 40 The Rankings Game Anne Sweeney, CEO of Disney- Andrea Gasparri of SDA Bocconi Letters 8 ABC, seeks the next big idea in explores the ramifications of the 10 Headlines entertainment. European rankings. 52 Research 26 Bachelor No. 1 46 The Law-Abiding Executive 56 Technology The BBA experiences a surge in Too often overlooked, legal literacy popularity as it becomes more should become an integrated part 60 Your Turn global, more hands-on, and more of the business curriculum, argues like the MBA. attorney Hanna Hasl-Kelchner. 62 Bookshelf 64 Calendar 32 A New Look at the Old BBA Two schools enhance their under 66 Classifieds graduates’ educational experience. 72 Spotlight Cover photo: Courtesy of Disney-ABC

BizEd november/december 2006 1

From the Editors My LIFEfolioTM LIFE’S MOMENTS BUILD UPON EACH OTHER TO EXPAND YOUR PERSPECTIVE ABOUT Oh, Brother! THE WORLD AROUND YOU. “The only constant in life is change.” Even though we repeatedly hear, and even believe, this Undergraduate students at Drexel University’s old aphorism, we often still want to hold fast to the way things are. For many in LeBow College of Business expand their business business and academia, change may seem uncertain, unexpected—and sometimes unwanted. knowledge with My LIFEfolio (LeBow Integrated I’ve been guilty of trying to hold on to the familiar—to my own detriment. In col- Focused Experience), a Web-based personal lege, as my classmates trekked to newly opened computer labs to write their papers, I portfolio. Designed as a living document, stubbornly refused to join them, using my sturdy Brother electric typewriter instead. My LIFEfolio becomes a fundamental When an English professor pointed out that I could save time if I would only use a computer, I responded curtly, “I like my typewriter. Computers resource throughout students’ academic I m ag e s just don’t interest me.” and professional careers. Inevitably, of course, I came to realize that my old Brother typewriter and I couldn’t keep up with the pace of change. Thus, I began my transforma- Students connect introductory course material to tion from technological philistine to technophile. My junior year, I bought their upper level classes in My LIFEfolio, building my first PC, with its DOS commands and tiny 25 kilobyte hard drive. Then an integrated academic experience through four R o bb De b enport/Getty came my first college e-mail account and a connection to a text-based World electronic portfolios: Wide Web; next, Windows 98 and AOL chat rooms. Today, I have my lap- top, with its 80 gigabyte hard drive, wireless high-speed Internet connection, • WRITING and enough technological capacity to launch the space shuttle. Every time • QUANTITATIVE REASONING I hit the “Del” key rather than empty a bottle of Wite-Out, I think of my sophomoric self and wonder: What on earth was I thinking? • BUSINESS CONCENTRATION Many business educators, too, have come to realize that change, while • CAREER unnerving, can bring a number of advantages. Disciplinary silos have become integrated curricula. Field trips to Wall Street have become on-campus trad- My LIFEfolio provides evidence of personal ing rooms. Overhead projections are now PowerPoint presentations, and and professional growth as students store ™ handwritten spreadsheets have morphed into Excel printouts. Wired has information, reflect on what they have My LIFEfolio become wireless. Just as one new innovation takes hold, yet another one learned, and showcase their knowledge. appears, requiring still another shift in mindset. But through it all, business LIFE’S LEARNING EXPERIENCED ONLINE schools have sought to evolve with and adjust to the ever-changing dynamics Students access both business and My LIFEfolioTM FROM DREXEL UNIVERSITY’S of the business world. non-business courses, completed In our articles “Bachelor No. 1” and “New Looks at the Old BBA,” we hear from assignments, multi-media LEBOW COLLEGE OF BUSINESS FEATURES: business educators who are transforming their BBA programs; they aim to update a projects, teaching notes, • Discretionary viewing rights to portfolios curriculum that they argue has stayed static for too long. Also in this issue, we talk with Anne Sweeney, president of Disney-ABC Television Group. Sweeney is passion- and presentations for • Availability of additional portfolios ate about changes in the television industry that are pushing it toward new delivery reference while they • Integration with WebCT, enabling optional uploads models. At a time when change can either push us kicking and screaming or inspire us are in school, on and downloads to new heights of innovation, Sweeney says she chooses to be inspired. co-op, or after • 24-7 Web access I still have that Brother typewriter. Somehow I can’t bear to part with it, even though it serves no other purpose than to graduation. remind me that sometimes, change is good—an exciting challenge to be embraced, not a difficulty to be avoided. After all, even FOR MORE INFORMATION– WWW.LEBOW.DREXEL.EDU though no one can know for sure what challenges lie ahead, everyone can learn and improve as a result of facing them head-on. ■z

COLLEGE OF BUSINESS Bill B asc om LEARN HERE, LEAD ANYWHERE® LeBow 6 BizEd november/december 2006 Emerald and EFMD doctoral research awards.qxd 9/14/2006 12:10 PM Page 1

2006 Emerald and EFMD Outstanding Letters Doctoral Research Award Winners

The 2006 Emerald/EFMD Outstanding Doctoral Research Awards promote and reward high-quality research and we would like to congratulate all the Award winners and Highly Commended winners and wish them every success in the future.

The Award winners are as follows:

Enterprise applications of internet technology category sponsored by International service management category sponsored by the Internet Research International Journal of Service Industry Management Winner: Daphne Raban, Doctoral award conferred by: University of Haifa, Winner: Margaret Hume, Doctoral award conferred by: University of Israel Queensland, Australia Title of research: “Ownership and subjective value in the trading and Title of research: “Investigating re-purchase intention in an experiential sharing of information” context using operations and marketing perspectives”

Library studies category sponsored by Library Hi Tech Consumer marketing and consumer behaviour category sponsored by the Winner: Catherine Maskell, Doctoral award conferred by: University of Journal of Consumer Marketing Western Ontario, Canada Winner: Stefano Puntoni, Doctoral award conferred by: London Business Title of research: “Consortia activity in academic libraries: anti- School, UK competitive or in the public good” Title of research: “The effect of social context on advertising reception” The Ethical Approach to contribute constructively not only by reporting on and examin- Management and governance category sponsored by Management Information science category sponsored by the Journal of Documentation Thank you for the article “On Course With ing many important issues, but also Decision Winner: Gillian Oliver, Doctoral award conferred by: Monash University, Winner: Taranjeet Patel, Doctoral award conferred by: Open University, Australia Ethics” in the September/Octo- by regularly reminding us all that UK Title of research: “Information in organisations: a comparative study of ber issue of BizEd. Authors Rob- ethics cuts to the heart of resolving Title of research: “Using dynamic cultural theories to explain the viability information cultures” ert Giacalone, Georges Enderle, conflicts large and small. An under- of international strategic alliances: a focus on Indo-French alliances” Linda Treviño, and Domènec Melé standing of ethics goes a long way Organizational change and development category sponsored by the authored essays that effectively toward ensuring growing, stable Interdisciplinary accounting research category sponsored by the Journal of Organizational Change Management Accounting, Auditing & Accountability Journal Winner: Todd Bridgman, Doctoral award conferred by: University of combine to cover many of the basic economies and peace in the world. Winner: Susan Greer, Doctoral award conferred by: Macquarie University, Cambridge, UK issues that business schools must Australia Title of research: “Commercialising the academic’s public role: theorising address. Marjorie C. Walsleben Title of research: “Governing indigenous peoples: a history of accounting the politics of identity constitution and practice in UK research-led As associate editor of the Gra- Associate Editor interventions in the New South Wales Aborigines Protection and Welfare business schools” ziadio Business Report and in my Graziadio Business Report Boards 1883-1969” Human resource development category sponsored by the Journal of private practice as an editor, I work Pepperdine University Marketing strategy category sponsored by the European Journal of Workplace Learning with faculty, students, and other Los Angeles, California Marketing Winner: Hermine Scheeres, Doctoral award conferred by: University of individuals writing on business top- Winner: Mark Glynn, Doctoral award conferred by: University of Queensland, Australia ics. In light of Sarbanes-Oxley, the Auckland, New Zealand Title of research: “Governing (at) work: doing, talking and being in the aftermath of Enron, and other topics Clarification Title of research: “The role of brands in manufacturer-reseller workplace” relationships” related to ethics in business, schools Leadership and organizational development category sponsored by the of business must lead their faculties, “Building on Success,” which appeared in Operations and supply chain management category sponsored by the Leadership & Organization Development Journal students, staff members, and con- the September/October issue of International Journal of Operations & Production Management Winner: Yifeng Chen, Doctoral award conferred by: Lingnan University, stituents in ongoing examinations BizEd, referenced the efforts Ray- Winner: Anders Richtnér, Doctoral award conferred by: Stockholm School Hong Kong, China of the multitude of issues related to mond A. “Chip” Mason has made of Economics, Sweden Title of research: “Goal interdependence and leader-member ethics as practiced in domestic and to support initiatives at the Col- Title of research: “Balancing knowledge creation – organizational slack relationship for cross-cultural leadership in foreign ventures in China” global arenas. lege of William and Mary’s Mason and knowledge creation in product development” As your authors have pointed out, School of Business in Williamsburg, American businesses and academic Virginia. The April 2005 gift of $4 institutions are increasingly involved million gift supports faculty growth The Award winners will receive a cash prize of 1,500 euros (or other currency in China, Brazil, and the gradually and development. The naming of equivalent), a certificate and an offer of publication in an Emerald journal, as a full paper, or as an executive summary/research note, at the discretion of the Editor. emerging African countries as they the school celebrates the broader engage in business ventures that are partnership with Mason and is not More information on all this year’s winners, including the Highly Commended winners is available via www.efmd.org and www.emeraldinsight.com/awards cooperative and, perhaps in some tied to any one gift. cases, exploitative. BizEd continues Application and eligibility criteria for next year’s Awards will also appear on these web sites at the end of September.

8 BizEd november/december 2006 Headlines

Spellings Report Spells Out education industry must adapt or database that would allow stakehold- Future for Higher Ed in U.S. risk being left behind by educational ers to compare institutions. In the systems in other countries. Among report, postsecondary schools and Is higher education in the U.S. in trouble? the commission’s suggestions: individual faculty are encouraged to Yes, if it doesn’t undergo a series of n Foster more cooperation increase their use of learning out- tough reforms. That’s the gist of a between K–12 systems, post-second- come measures, while accreditation report recently offered by the Com- ary institutions, and policymakers to agencies are urged to “make perfor- mission on the Future of Higher insure that access to higher educa- mance outcomes...the core of their Education, which was organized last tion is simpler and more straight- assessment as a priority over inputs year by U.S. Secretary of Education forward. The authors of the report or processes.” Margaret Spellings. The charge of the noted that they were “particularly n Embrace “a culture of con- 19-person commission tinuous innovation,” was to develop “a com- designed to serve the prehensive national strat- knowledge economy egy for postsecondary through new pedago- education that will meet gies, curricula, and the needs of America’s technology. The com- diverse population and mission would also like also address the econom- to see schools develop ic and workforce needs a strategy to encourage of the country’s future,” lifelong learning among according to government Americans. press releases. The report is bound Already controversial, to spark much debate the Spellings Report among educators, says has been released to the Arthur Kraft, dean of the American public via a Argyros School of Busi- series of drafts that first ness and Economics at appeared this summer. Chapman University in The commission studied four key troubled by gaps in college access Orange, California, and the board areas of higher education today: for low-income Americans and eth- chair for AACSB. access, affordability, quality, and nic and racial minorities.” “The report from the Commis- accountability. The report offers n Improve the affordability of sion on the Future of Higher Edu- far-reaching recommendations that higher education by urging colleges cation will have an impact on all of the commission admits will only be and universities to implement cost- us,” says Kraft. “This is especially achieved with the cooperation of cutting measures, increase produc- true of the accreditation process of diverse stakeholders—colleges and tivity, and adopt new technology. AACSB International. Anyone famil- universities, accrediting bodies, state The commission also recommends iar with our standards and processes and federal policy makers, elemen- simplifying the current standard knows that we emphasize overall tary and secondary schools, the financial aid forms and putting high quality and accountability. On business community, and parents greater emphasis on need-based the other hand, some aspects of the and students. financial aid. report will have a significant impact Castigating American higher n Insist on more transparency on us if the recommendations are education as complacent, the report and accountability from colleges implemented in their current form. claims the U.S. educational system is and universities. These institutions I remain optimistic that a common risk-averse, self-satisfied, and unduly would contribute information about ground may be reached that satisfies expensive. Like railroads and steel cost, price, and student outcomes all stakeholders. Otherwise, we will manufacturers, the report warns, the to a consumer-friendly information be challenged.”

10 BizEd november/december 2006 “Our research shows a significant increase in the recruiters coming to MBA programs and in the number of offers each recruiter is making,” —David A. Wilson, president and CEO of GMAC

MBAs Are Flourishing Business in Los Angeles, where women make up 2006 is shaping up to be a good year for 46 percent of this fall’s MBA education, according to several full-time MBA class. recently released surveys. Applica- “We’re seeing many tions are up across the board, more women who are inter- women are enrolling in business ested in entrepreneurial school, and new MBAs are enjoying pursuits that allow them a robust job market. to control their own Applications are up. Business school puses to hire newly minted MBAs. future,” says Livingstone. “Even if application levels surged in 2006, “Our research shows a significant they choose to enter the corporate according to the 2006 Application increase in the recruiters coming to world, women are rewarded for their Trends Survey conducted by the MBA programs and in the number creativity and entrepreneurial skills.” Graduate Management Admis- of offers each recruiter is making,” And yet, women face many barri- sion Council of McLean, Virginia. says David A. Wilson, president and ers when attempting to pursue their According to the survey, two-thirds CEO of GMAC. “The increase in MBAs, according to the Queen’s of full-time MBA programs saw applications only reinforces the con- survey. The report found that application levels rise in 2006, up clusion that the market for MBAs is respondents saw three key obstacles from about one-fifth the year before. hot and getting hotter.” to women enrolling in MBA pro- Applications also rose for part-time A new survey published by the grams: family responsibilities (cited and executive programs. The 2006 Queen’s School of Business in by 36 percent), lack of financial GMAC Application Trends Survey Toronto might explain why. Accord- resources (18 percent), and lack incorporates responses from 230 ing to that survey, which was distrib- of female role models (6 percent). MBA programs at 147 graduate uted to 400 business leaders in Can- Interestingly, while 56 percent of business schools around the world. ada, 78 percent of executives would the women responding to the survey The job market is strong. The higher rather hire a candidate with an MBA believe there are multiple barriers volume of MBA applications reflects than without one, if other factors are to female enrollment in MBA pro- steadily improving prospects for equal. Specifically, what executives grams, just 30 percent of men in MBAs. The eighth annual State of like about MBAs are the candidates’ senior positions feel the same way. Student Recruiting survey, con- superior skill sets, familiarity with Livingstone believes that MBA ducted by WetFeet Research and a variety of business disciplines, programs can draw more female Consulting of San Francisco, gath- exposure to business issues, level of candidates by removing some of ered information from more than qualifications, and commitment to those obstacles—specifically by offer- 1,000 MBAs. According to WetFeet, their careers. ing flexible programs, hours, and the average number of job offers More women seek MBAs. While the locations, as well as an applied and received by MBA students at top-tier market is good for all MBAs right relevant experience. schools increased to 2.3 in 2005– now, it might be particularly recep- “It’s becoming increasingly popu- 2006, up from 2.0 the year before. tive to women. GMAC’s Application lar to offer classes in the morning Those numbers are supported by Trends Survey shows that 64 percent during the week as an alternative other 2006 GMAC surveys, which of full-time MBA programs received to evening classes in part-time pro- show that average salaries for new more applications from women in grams,” Livingstone says. “It’s also MBAs are continuing to rise and a 2006. Forty-seven percent of part- becoming popular to eliminate the majority of business school graduates time programs received more appli- summer session or develop programs are able to secure a job before gradu- cations from women, and 50 percent that blend in-class with e-learning ation. According to GMAC, corpo- of executive programs did so. options. But getting the opportunity rate recruiters report that they feel That’s not a surprise to Linda to tackle real business issues in real better about the economy—and are Livingstone, dean of Pepperdine time with companies in the class- visiting more business school cam- University’s Graziadio School of room is the draw for women.”

BizEd november/december 2006 11 Headlines

AACSB Accreditation makes it possible for AACSB docu- Entrepreneurs and the Law in The Netherlands mentation, reports, and accreditation decisions to be accepted by the Entrepreneurs who understand the legal The Accreditation Organization of The NVAO as sufficient evidence of qual- issues affecting their businesses are Netherlands and Flanders (NVAO) ity in the business programs. less likely to make costly blunders, has become the first European “We are delighted to have been and a new program at the Univer- accrediting agency to accept AACSB accorded NVAO recognition, which sity of Arizona’s Eller College of accreditation as equivalent to satisfy- is a convincing validation of the Management in Tucson is aimed at ing its own requirements. AACSB review process that AACSB deliv- giving business has granted international accredita- ers to schools pursuing AACSB students just such tion to 527 business schools in 30 accreditation,” said Jerry E. a competitive nations, including the University of Trapnell, executive vice president advantage. The Antwerp in Belgium. and chief accreditation officer of program, which This confirmation of AACSB’s AACSB International. “Validation received startup accreditation process eliminates from NVAO highlights the respect funding from the unnecessary duplication for educa- other accrediting bodies have for Ewing Marion tional institutions that are trying to the rigorous review provided by Kauffman Foun- satisfy the requirements for both AACSB as a world leader in global dation, is a part- organizations. The recognition also accreditation.” nership between Eller’s McGuire Center for Entre- preneurship and the university’s James E. Rogers College of Law. Students from four areas of the law school—intellectual property (IP), entrepreneurial law, corporate law, and tax law—will create a mock law firm that offers counsel to venture teams from the McGuire AICPA Funds ‘Bridge’ Scholarships Entrepreneurship Program. Entre- preneurship students will learn how The American Institute of Certified Public Accountants (AICPA) Foundation to engage the legal community awarded AACSB International a $25,000 grant to fund scholarships for the throughout all stages of venture AACSB Bridge Program. The grant money provided individual scholarships for planning, while law students will attendees at the first AACSB Bridge Program seminar, held in October at the Uni- gain practical experience advising cli- versity of California, Irvine. ents who start up business ventures. “We appreciate the generosity of the AICPA Foundation in funding scholar- Faculty involved in the part- ships for Bridge Program participants,” said John J. Fernandes, president and nership expect the possibilities chief executive officer of AACSB International. “This scholarship money will be to extend beyond teaching into put to good use by senior business professionals who hope to make a successful research. “A rich economic lit- transition to teaching in a business school environment.” erature exists on the relationship The AACSB Bridge Program is a five-day intensive seminar that helps senior between IP law and fostering inno- executives become qualified candidates for faculty positions. The program is a vation,” says law professor David joint project of AACSB, the Paul Merage School of Business at the University of Adelman. “There could be much California, Irvine, and the Marshall School of Business at the University of South- greater crossover between work on ern California. For complete information on the Bridge Program, including quali- IP policy and the economic and fications and applications, visit www.aacsb.edu/bridge. legal work examining small businesses and innovation.”

12 BizEd november/december 2006 Short Takes n Bruce A. Reinig is a Mack Hornbeak Endowed Profes- the new chair of sor in Economics at the E. J. Ourso New Appointments the Information College of Business at Louisiana n William W. Keep has been named and Decision Sys- State University in Baton Rouge. the inaugural dean of the Sprott tems department at School of Business at Carleton Uni- San Diego State Univer- n Debra J. Ringold, professor of mar- versity in Ottawa. Currently, Keep is sity’s College of Business keting at Willamette University’s a marketing professor at Quinnipiac Administration in California. Atkinson Graduate School of Man- University in Hamden, Connecti- agement in Salem, Oregon, has been cut. His six-year appointment at the n Erik R. Sirri has joined the Securi- named the chairperson of the board Sprott School begins January 1. ties and Exchange Commission as of directors for the American Mar- its next Director of the Division of keting Association. n Rodney K. Rogers has been appoint- Market Regulation. Sirri, a professor ed the new dean for the College of of finance at Babson College, also n Alan Jenkins has been appointed Business Administration at Bowling has recently been a visiting scholar at as the academic director of the Green State University in Ohio. He Harvard Law School. executive MBA program run in was previously an associate dean partnership by ESSEC Business and director of academic programs n Gaia Marchisio has been named a School in Paris and the University of at Portland State University’s faculty associate of the Cox Family Mannheim in Germany. School of Business Administra- Enterprise Center at the Coles Col- tion. Two other appointments have lege of Business at Kennesaw State Gifts and Donations been made at the school: Hokey Min University in Georgia. Marchisio, n Real estate owner Jay. H. Shidler has been named professor and the who joins the Coles College as an has donated $25 million to the James R. Good Chair in Global assistant professor of management, University of Hawaii Strategy, and Janet Hartley has been most recently taught at SDA Bocconi in Honolulu. In named the Owens-Illinois Professor in Milan, Italy. recognition of his of Business. gift, the school is n John Sibley Butler has joined Babson renaming the Col- n Pascal Morand College in Wellesley, Massachusetts, lege of Business has been named as a Distinguished Scholar and Administration the dean of ESCP- adjunct professor. Butler will help Shidler College of Business at the EAP European design and deliver academic pro- University of Hawaii at Manoa. School of Man- grams and a collaborative entrepre- agement, with neurship incubator project between n Canadian businessman Paul locations in Paris, London, Madrid, Babson College and neighboring G. Desmarais and his family have Berlin, and Torino. Morand, a pro- Olin College of Engineering. donated $15 million to the University fessor of economics and most recent- of Ottawa in Ontario, Canada. The ly dean of the Institut Français de la n Oliver Aptel has been named General contribution will be recognized with Mode, took over from Jean Louis Director of the ESC Rennes School the naming of the Desmarais Build- Scaringella, who led the school for of Business, succeeding Michel ing, a new 12-story flagship building seven years. Besnehard, who will retire in France. that will serve as the home of the School of Management and Faculty n Olav Sorenson has been named the n Robert Newman has been appointed of Social Sciences. Jeffrey S. Skoll Chair in Technical managing editor of the Journal of Innovation and Entrepreneurship at Labor Research and will begin his n The David Eccles School of Busi- the University of Toronto’s Rotman duties in 2008. Newman is the chair ness at the University of Utah in Salt School of Management. of the department of economics and Lake City has announced a $13.25

BizEd november/december 2006 13 Headlines

Short Takes n New York hotel of Business in College Park. Pro- investor George L. fessor Kathryn M. Bartol received the million gift from alumnus and Cana- Ruff has donated 2006 Distinguished Service Award, dian philanthropist Pierre Lassonde. $1.5 million to and professor emeritus Edwin A. The donation creates the newly DePaul University in Locke has received the Distinguished renamed Pierre Lassonde Entrepre- Chicago to establish a professorship Scholarly Contributions Award. neur Center, which will consist in in real estate studies. The gift from part of already existing programs, the Trinity Hotel Investors co-found- n Chee Chow has received the Out- including the Pierre & Claudette er will go toward faculty recruitment. standing International Accounting MacKay Lassonde New Venture The center expects to name its first Educator Award for 2006 from the Development Center. George L. Ruff Endowed Professor American Accounting Association. next year. Chow is an accounting professor at n Paul K. Woolley is San Diego State University’s College donating £4 million n The University of Washington Business of Business in California. (about $7.6 million School in Seattle has received $1.5 LEADING THE WAY IN in U.S. dollars) to million from Robert J. Herbold, n Jack VanDerhei and Ruth Helman have the Tanaka Business managing director of Herbold Group won the 2006 Media Recognition LOGISTICS, TRANSPORTATION, AND School at Imperial LLC and retired vice president and Award given by The National Asso- College London. COO of Microsoft. One-third of ciation for Government Defined SUPPLY CHAIN MANAGEMENT EDUCATION The money will the money will be used to establish Contribution Administrators Inc. for create a new Centre the Robert J. Herbold Professor of the publication, “Will More of Us A STRATEGIC COMMITMENT TO THE FIELD OF LOGISTICS, for Capital Market Dysfunctionality, Entrepreneurship, while $1 million Work Forever? The 2006 Retirement ver a half century ago, the University of TRANSPORTATION, AND SUPPLY CHAIN MANAGEMENT: which will research financial market will be used to build the Robert J. Confidence Survey.” VanDerhei is a O Maryland singled out transportation and inefficiency and its consequences. Herbold Venture Creation Lab. professor in the department of risk, • Preparing over 200 undergrad- • Housing the Supply Chain logistics as a critical ﬁ eld of study for future insurance and healthcare manage- uates and MBAs to enter and Mangement Center— n The Wharton School of the Uni- Honors and Awards ment at The Fox School of Business, business leaders. enrich the profession each year. creator of the supply chain versity of Pennsylvania in Philadelphia n Seth Hammer, associate professor of Temple University, Philadelphia, announced a $5 million gift from accounting at Towson University in Pennsylvania. Helman is research portals for the U.S. Air Force Today, that commitment remains stronger • Offering 25 undergraduate Robert M. Levy, chairman and Maryland, has been named one of director at the public opinion and the State of Maryland, as than ever at the university’s Robert H. and graduate courses covering CEO of Harris Associates, and his the state’s top CPAs for the second research firm Matthew Greenwald well as the ﬁ rst live, global wife, Diane. The gift will establish consecutive year by Smart CEO. and Associates, Washington, D.C. Smith School of Business. today’s integrated supply chain. supply chain simulation game. the Diane v.S. and Robert M. Levy Combining a demanding curriculum with an • Providing hands-on training Social Impact Fund with $2 million; n Barbara Gutek was recently pre- Collaborations outstanding teaching and research faculty, through advanced simulation, • Developing tomorrow’s provide supplemental funding of sented with the Distinguished n Author Jim Collins has outstanding scholars and $2.75 million to the existing Levy Service Award by the Society for partnered with the Uni- the Smith School’s logistics, transportation, planning, and optimization Endowed Fellowship Fund; and the Psychological Study of Social versity of Virginia’s Darden and supply chain management program tools in the school’s researchers though one of the benefit the University of Pennsylva- Issues. Gutek is professor in the School of Business in stands out as one of the strongest and larg- Netcentric Supply nation’s few supply chain nia’s Museum of Archaeology and department of management and Charlottesville to create est in the world. Chain Laboratory. PhD programs. Anthropology with $250,000. organizations at the University of an interactive multimedia Arizona’s Eller College of Man- product based on his n Georgia businessman James M. agement in Tucson best-selling book, Good to Hull has donated $2 million to the Great. “The Good to Great Experi- For more information about the logistics, transportation, and supply chain management program at College of Business Administration n The Academy of Management ence,” developed in collaboration at Augusta State University in Georgia. has recognized two members of the with Darden Business publishing, the University of Maryland’s Robert H. Smith School of Business, contact Dianne Fox, 301.405.2190 or In appreciation, the college will be department of management and features three hours of customizable renamed the James M. Hull College organization at the University of video as Collins explains the concepts [email protected] www.rhsmith.umd.edu of Business. Maryland’s Robert H. Smith School found in his book.

14 BizEd november/december 2006

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Headlines The HAUB Master’s in Business. Form + Function

Short Takes Science in Entrepreneurship pro- funded in part by a $4.5 gram that will enroll its first stu- million gift from donors n GISMA Business School in Hanover, dents in January. Joel and Sharon Labovitz. Germany, has launched student The 65,000-square-foot new exchange programs with the EASCP- n The University of Pennsylvania in building, which is expected EAP business schools in Paris and Philadelphia is offering a graduate to open in 2008, will be certi- Madrid. degree program for learning leaders fied for Leadership in Energy through a partnership between the and Environmental Design n Grenoble Ecole de Management in Wharton School and the Graduate (LEED) by the U.S. Green France has signed partnership School of Education. The Execu- Building Council. Architects agreements with the Institute of tive Program in Work-Based Learn- are Perkins+Will, an interna- Management Technology in Gha- ing Leadership focuses on business, tional firm that specializes in envi- ziabad, India, and the Indian Insti- leadership, technology, and strategy ronmentally sound design. tute of Management Bangalore. within the context of work-related The partnership will involve student learning. Other News and faculty exchanges and a joint n The Aspen Institute takes on the development of executive education n Beginning this fall, undergradu- topic of corporate governance in its and conference planning. ate business students at the Fisher newest online edition of “A Closer College of Business at The Ohio State Look at Business Education.” An n INSEAD of Fontainebleau, France, University in Columbus will have a interview with emeritus Harvard and Singapore, has partnered with chance to earn Green Belt certifica- professor Michael international investment bank Mac- tion in Six Sigma. Working under Jensen helps answer quarie Group to provide a global the supervision of a Six Sigma Black the question, “What master of finance program for Mac- Belt, students will enroll in two defines good corporate quarie’s investment banking manag- ten-week classes, complete a project governance?” The arti- ers. The program launches in 2007. for a local nonprofit organization, cle also examines how and take the Green Belt certifica- the issue is managed New Programs tion exam. in global MBA education. It can be n The Old Dominion University College found at www.beyondgreypinstripes. ■ of Business and Public Adminis- Facilities org/pdf/cgreport.pdf. At the Erivan K. Haub School of Business, our programs Professional MBA - with 10 areas of concentration tration in Norfolk, Virginia, has n In September, Drexel University’s integrate general business concepts with functional ■ M.S. Financial Management – corporate finance expertise launched a new LeBow College of Business opened n The W.P Carey School of Busi- ■ undergraduate new facilities in Malvern, Pennsyl- ness at Arizona State University in expertise to foster multi-dimensional, practical leadership M.S. Human Resource Management – H.R. leadership major in maritime vania, to house its LeBow Evening Tempe has launched a program that qualities. This holistic approach is based on the Jesuit ■ M.S. Decision & System Sciences – business intelligence and supply chain Accelerated Drexel (LEAD) MBA brings high-achieving high school ■ M.S. International Marketing – global perspective management. program. The new facility allows graduates directly into the business tradition of blending academic rigor with a focus ■ Students pursuing LeBow to host guest lectures and school. This fall, 121 elite freshmen on the individual and on the common good, and is Post-MBA Certificate the major will take provide student amenities for took advantage of Carey Direct. specialized courses in international LEAD such as wireless access and They will complete two years of reflected throughout our curricula with support from shipping, supply chain logistics, ship- onsite advising. pre-business coursework before the Arrupe Center for Business Ethics at SJU. The ping management and port manage- applying to a professional program ment, along with other supply chain n The University of Minnesota in Duluth in one of seven academic pro- result? A unique environment in which both part-time and logistics course options. has broken ground on new envi- grams offered at the Carey School. and full-time students are able to advance and excel ronmentally friendly facilities for its The new program is expected to n Southern Methodist University’s Cox Labovitz School of Business and improve retention among top stu- professionally as well as personally. Erivan K. Haub School of Business School of Business in Dallas, Texas, Economics. Total cost of the build- dents and produce more high- has announced a new Master of ing is expected to be $23 million, quality graduates. ■z Spirit Intellect Purpose www.sju.edu/hsb 16 BizEd november/december 2006 The Change Artist

For Anne Sweeney, Anne Sweeney’s soft-spoken manner and quiet energy belie her status as a powerhouse in the entertainment industry. She has been named the “Most Powerful Woman in the high-powered Entertainment” by The Hollywood Reporter, one of Fortune’s “50 Most Powerful Women in Business,” and one of Forbes’ “World’s 100 Most Powerful Women.” president of the Ask her about this recognition, however, and she immediately defers to her team and to the “up-and-comers” in the entertainment industry, whom she values for their Disney-ABC Television energy and ideas. “It’s wonderful to be recognized, not just for my accomplishments, but for my team’s accomplishments,” says Sweeney. “But it begins and ends Group, an uncertain there. I’m more impressed when I look at new talent, when I see who’s coming up in the spotlight.” future and the Sweeney began her own business career unconventionally. She earned a bachelor’s degree in English from The College of New Rochelle in New York and inevitability of change a master’s degree in education from Harvard University in Boston, Massachusetts, planning to be a teacher. Her plans began to change when, at 19, she landed a job present endless as a page for ABC, an experience that sparked her passion for the entertainment industry. After she completed her master’s program, she was hired by Nickelodeon, opportunities, not then a brand-new cable network for children’s programming. Starting as an assistant, Sweeney eventually became its senior vice president of program enterprises. obstacles, to business. In 1993, she worked with television executive Rupert Murdoch to launch the cable network FX and served as its CEO. In 1996, she moved to The Walt Disney Company, where she served as president of the Disney Channel and executive by Tricia Bisoux vice president of Disney-ABC Cable Networks. She was promoted to president of Disney-ABC Television Group in April 2004 and also serves as the co-chairman of Disney Media Networks. Most recently, Sweeney headed a deal that is part of what she has called a “seismic shift” in the entertainment industry. In May and June, ABC.com offered episodes of its most popular television shows, including “Lost” and “Desperate Housewives,” via an ad-supported, free-streaming model on the Internet. The company was also the first to offer viewers the chance to purchase episodes after their airing on television for $1.99 on Apple’s iTunes online music store. These moves represented a break in traditional program delivery—and a threat to the status quo. But now that new technologies are emerging and younger audiences are seeking out alternative delivery of content, the entertainment industry can’t afford to “cling to old models or old ways of thinking,” says Sweeney. That’s true for businesses in all industries, Sweeney emphasizes. To serve business well, she says, today’s business graduates must be able to embrace change with a passion for innovation, an ability to think creatively, and an unbridled enthusiasm for “what’s coming next.”

18 BizEd November/December 2006 photo courtesy Disney-ABC Television Group BizEd November/December 2006 19 THE RICHARDS GROUP JOB #: 06-0271-SBU CLIENT: SMU TRIM: 8.375" x 10.875" LIVE: 7.375" x 9.875" BLEED: 8.625" x 11.125" LS/COLORS: 133/CMYK DESCRIPTION: BizEd Ad RELEASE DATE: Nov/Dec FOR QUESTIONS CALL: Jen Duncan 214.891.5808

We want students who are ready to put aside the way they watch television and think about television. They need to be able to view television in new ways, because it’s constantly changing. With Numbers Like You took a nonstandard route to the students are ready for change, ready to executive’s office, earning degrees in think out of the box. For our compa- English and education, rather than ny, we want students who are ready to business. Did you ever consider earn- put aside the way they watch television Ours, You’d Probably Expect ing your MBA or seeking additional and think about television. They need business training? to be able to view television in new ways, I’ve taken business courses along the way. because it’s constantly changing. I took the Harvard Negotiating Seminar, To See Ivy On The Wall. which I found extremely useful, and I’ve In a recent appearance at Pepper- taken accounting courses for people in dine University’s Graziadio School creative fields. I’ve had some excellent of Management, you noted that it mentors in business. But for me, my will be “internal entrepreneurs” business education was mostly about who keep companies relevant. How learning on the job and working with do you define an internal entrepre- some smart MBAs. neur? What skills do business schools need to impart to students to create When you look at the latest MBA that mindset? Whether it’s the 1383 average SAT score for our entering freshman class or the $157,000 average graduates who are sending your I was talking about people who value innova- annual compensation for incoming EMBA students, SMU Cox boasts impressive numbers. company their resumes, who gets tion, who focus on being leaders instead of the interview? maintaining the status quo. All the big corpo- In addition, 100% of our full-time MBA students study abroad to gain ﬁ rsthand knowledge of I really look for people who have a passion for what they do, rations were built by entrepreneurs. For Disney to continue the global marketplace. The educational experience our students receive is enhanced by a people who are truly interested in the future of media and to be successful, it has to be run by people who are internal mentoring program that includes more than 220 executives representing every major industry. So the future of our company. entrepreneurs, who think differently. I’m fortunate that my boss, Bob Iger, the president and CEO of The Walt while there may be no ivy on the wall, you have to admit, our oaks look mighty distinguished. What qualities get them the job? Disney Company, is one of those people. He has imparted I’m looking for true leaders, not people who are focused to me the three goals of our company—developing creative Visit www.smucox.com or call 214.768.9022 on being No. 1 among a finite set of competitors. I focus strength, leveraging technology to support our content, and on the people who have a bigger idea of where we can go, emphasizing international growth and expansion. Those are whether in entertainment, in technology, or in our inter- the goals of an entrepreneur. Those are not the goals of the

national sphere. I look for people who are brave and who person who is just trying to keep things going. t elevision group are willing to get behind big ideas. I need people who are unafraid of change, who are willing to break some china to You entered into a decidedly “intrapreneurial” ven- try out a new idea. Then, they have to be willing to live with ture when ABC began to offer episodes of some its

the consequences. shows via the Internet and through iTunes. What has a bc t esy disney- SMU will not discriminate on the basis of race, color, religion, national origin, sex, age, disability, or veteran status. SMU’s commitment to equal opportunity includes nondiscrimination on the basis of sexual orientation. been the most difficult aspect for you as you experi- How important is a business degree’s pedigree to ment with these new models of delivery? How do your company when it considers whom to hire? Do you try to step ahead and anticipate future trends? students with degrees from top-ranked business When we decided to work with Apple and iTunes, we just schools or specialized “entertainment MBA” pro- felt that there was enough “there there” to take the risk. grams have an advantage over those from general Disney had spent so much time talking about the future, MBA programs? so much time talking about the opportunities digital had No, they don’t. It’s really about the interview. It’s about their to offer, but nothing had happened. When this opportunity passion and excitement about what they want to achieve and with Apple presented itself, we came to the conclusion that where they want to go in their lives and careers. it was the smart thing to do. Whether it works or not, we know we’ll learn a great deal from this experience. What do you most want business schools to teach In May and June, we also conducted a two-month test in t esy e Apple housewife compu t ers, cour desper at these new hires before they come to your company? which we offered our shows on ABC.com. Viewers couldn’t pod cour The message I have for business schools is to make sure their download the shows, but they could watch them. We wanted i

20 BizEd November/December 2006

060271SBU.indd 1 9/26/06 6:36:20 PM THE RICHARDS GROUP JOB #: 06-0271-SBU CLIENT: SMU TRIM: 8.375" x 10.875" LIVE: 7.375" x 9.875" BLEED: 8.625" x 11.125" LS/COLORS: 133/CMYK DESCRIPTION: BizEd Ad RELEASE DATE: Nov/Dec FOR QUESTIONS CALL: Jen Duncan 214.891.5808

With Numbers Like Ours, You’d Probably Expect To See Ivy On The Wall.

Whether it’s the 1383 average SAT score for our entering freshman class or the $157,000 average annual compensation for incoming EMBA students, SMU Cox boasts impressive numbers. In addition, 100% of our full-time MBA students study abroad to gain ﬁ rsthand knowledge of the global marketplace. The educational experience our students receive is enhanced by a mentoring program that includes more than 220 executives representing every major industry. So while there may be no ivy on the wall, you have to admit, our oaks look mighty distinguished.

Visit www.smucox.com or call 214.768.9022

SMU will not discriminate on the basis of race, color, religion, national origin, sex, age, disability, or veteran status. SMU’s commitment to equal opportunity includes nondiscrimination on the basis of sexual orientation.

060271SBU.indd 1 9/26/06 6:36:20 PM Whether it’s educational content for business schools or media content for the entertainment industry, the key question to ask is, “What’s the appropriate technology for the content I want to deliver?”

to see what we would learn about this mode of delivery and media content for the entertainment industry, the key ques- how it would work. We set it up so that we had one sponsor tion to ask is, “What’s the appropriate technology for the per episode, and we learned a lot about advertising and how content I want to deliver?” Not every technology works for it lived in this kind of format. We learned the average age of every type of content. That’s part of what we’ve been test- the viewers who accessed these shows on the Internet, and ing with both the iTunes deal and at ABC.com. In June, we whether this experience worked for people. Again, this was also launched DisneyChannel.com, which is a broadband a test, because we were thinking and feeling that this was a service aimed at 2- to 14-year-olds. While we had 5.7 mil- venue for our programming, but we first had to find out. lion streams in our two-month test at ABC.com, we had 34 million streams in June and July on DisneyChannel.com. What did you learn that was most helpful? That told us a lot about the differences between today’s In that two-month period, we had 5.7 million streams of 2- to 14-year-olds and today’s 27-year-olds. It’s important our shows. The average age of the person accessing these that you understand your constituents—your viewers, your programs was 29, while the average age of viewers watching consumers, your students—and learn exactly what technol- the program on the broadcast network is about 46. Already ogy they’re using to access what types of content, Then, you we’ve found that we are responding to a younger audience, can better figure out which one works best for what you’re and we know where they are. We also learned that 87 percent trying to do. of people who watched the shows online, and who responded to an exit review, correctly identified the sponsor of the pro- Risk-taking is a big part of your job. Do you think gram and had a good opinion of the sponsor. That was critical business graduates who come to work for your com- knowledge, not just for us but for our advertisers as well. pany know the basics of risk management? How have you learned to differentiate between risks that By offering shows on ABC.com, ABC angered many are worthwhile and those that are reckless? local affiliate stations, who fear that they’ll be cut To be fair to recent graduates, it’s more about their first one out of the loop if online programming takes off. In or two jobs out of school than it is about their education. I the long term, as technology advances, their worries was so lucky. I walked into a “brave new world” after gradu- could become reality. How do you manage the pain- ate school when I signed up at Nickelodeon. I think I was ful aspects of these changes, especially as they affect its tenth employee. I remember that every year when we cre- traditional mainstays of your market? ated our budget, we also had to write a shutdown scenario. I We worked very hard this summer to engage our affiliates in knew then that I was working in a startup where everything this exercise. We were able to reach an agreement with them was possible, but nothing was a sure bet. so that the new player could launch in September, not only In retrospect, that was a defining experience for me. It on the network’s Web site, but also on the 215 local affiliate helped me learn to enjoy taking risks and look forward to Start Here. sites across the country. This is as much their future as it is figuring out what was next, because nothing was a given. START HERE. go anywhere. ours; they’re confronted with exactly the same challenges We were never assured that our business would be around Run with the bulls. that we are. So, it was important to me for them to be a part the next day or the next week. It was all about being more of ABC.com. For example, viewers could come to the ABC. relevant to the industry in that moment. ryan King com player through affiliate Web sites. Our affiliates remain Investment Banker part of an important delivery system, but they also must Do you think your outlook on risk would be different Barclays capItal confront these changes, as people have access to more and had Nickelodeon failed? 2001 Graduate more technology. It’s something that we’re all going to have I really have no way of knowing, but I did discover early on to monitor very carefully. that I loved the challenge of the unknown. When I went over to Fox to start FX, I had never started anything from Business schools also are experimenting with alterna- scratch by myself without an infrastructure that I knew and tive delivery methods, such as podcasting, for educa- trusted. Having to put all of that together reaffirmed the fact tional content. What have you learned about serving that I loved the hard jobs. I love the jobs that I don’t know a younger demographic that demands more choices how to do. I love getting in there and figuring it out and in the way content is delivered? making some good, big, noisy mistakes along the way, which Whether it’s educational content for business schools or is really part of the learning process.

to learn how culverhouse prepared ryan to take Wall street, visit: cba.ua.edu/ryan 22 BizEd November/December 2006

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THE FOX SCHOOL Students need to view learning as a lifelong pursuit. It doesn’t stop when they get out of school. TEMPLE Powering Entrepreneurship in Fox Ranked What would you say has been your most educational If you were to teach a business school class on the mistake along the way? most important lessons you’ve learned over your Among Top U.S. In the early days of Nickelodeon, we ran a show that was career, what topics would be on your syllabus? Philadelphia…and Beyond about almost superhuman kids who had achieved unbeliev- At the top of the list would certainly be innovation, the able things, either in sports or music or science. We learned value of startups, the value of problem solving, and the Entrepreneurship very quickly that our audience felt absolutely no connection value of teams. to these kids. If anything, it made them feel bad; it didn’t make them feel that they were connecting to people just like Are business schools doing a good job of teaching Programs: them. That show’s failure was an important lesson. those skills? I think business schools are teaching these skills, but these About knowing the audience you serve? skills are also learned on the job. Students need to view Absolutely. And when you make a mistake like that, you need learning as a lifelong pursuit. It doesn’t stop when they get #4 Undergraduate to get even closer to your audience out of school. Students also have to know that mentors and listen even harder. That’s the who can teach them are everywhere— #7 Graduate only way you’ll understand your not just people who have gone before mistakes and avoid making them them, but the people they’re working a second time. with today.

When you speak to busi- You’ve emphasized how impor- —Entrepreneur magazine and ness students, what do you tant mentors have been to you in The Princeton Review, 2006 most want to emphasize your career. How important do as they prepare for their you think mentors are to success careers? in business? My theme song is, “Think My mentors have come from inside outside the box.” Students and outside the company, and over should know that they can’t the years I’ve found that mentorship always put things through is incredibly important. It comes in traditional filters, and they many different forms—it’s not always should understand that business has to change to survive. It’s a formal process. Sometimes your very important not to try to model everything they do after mentors are your bosses, sometimes they’re the people who something that has come before. inspire you by their actions. I think students really have to The iTunes deal is a perfect example of that. There wasn’t go into their first jobs looking for people who inspire them, a model that we could follow to determine whether or not looking for information, looking for opportunities to learn. Featured Fox Entrepreneur: Phyllis we should agree to the deal. But we did know that delivering We have a wonderful mentoring program at ABC, and I’ve Ludwig (Fox Executive MBA ’05) shows via iTunes would be groundbreaking. When I held been fortunate enough to be a mentor over the last couple of the iPod for the first time, I saw our content through a new years. I can honestly say that I’ve learned as much from my winner of Fox’s 7th annual lens. I saw something that could make our product more mentees as I hope they’ve learned from me. It’s very likely in entrepreneurship business plan convenient for people to access, and I saw an opportunity to any conversation with them that I’ll put my problem of the protect our content from piracy, which was critical to us. I day on the table with them and see how they would solve it. competition for Cent.$.able Kids, knew it was important to take the risk. a company that provides money Besides seeking out mentors to inspire them, what do management educational materials As you look to the future of the entertainment busi- you think is most important for students to know as for children throughout the U.S. ness, what worries you the most? they embark on careers after business school? t elevision group I think what worries me most also gives me the most joy. I Students should know that their success depends on lifelong love not knowing what’s going to happen next. I don’t have learning. No one arrives at a job knowing how to do it per- a crystal ball. I don’t know the next great technology that fectly, and no one really should. They should arrive with a

will impact us the most, but I love the challenges and the lot of trepidation, a lot of energy, and a great desire to learn. a bc t esy disney-

potential for growth that change presents. That’s where the good ideas come from. ■z cour www.fox.temple.edu/IEI 24 BizEd November/December 2006 Bachelor

No.1When James Danko is called upon to give a speech to a Villanova University stakeholder—or Today’s business anyone interested in business education—he likes to say, “This is the era of the undergraduate business student.” The dean of Villanova’s School of Business in undergraduates are Pennsylvania notes that the events swirling around graduate business education have created something of a perfect storm that has benefited the BBA. taking trips overseas, “There was the recession and the decline in applications, and there were significant people like Warren Bennis taking shots at full-time MBA programs,” enjoying hands-on says Danko. “Employers are starting to look toward undergraduate markets when they’re recruiting and hiring. The reality is that undergraduate programs learning, and are really hot right now.” In fact, they are. Since 1995, undergraduate business degrees have account- developing leadership ed for about 69 percent of all the business degrees awarded in the U.S. During that same period of time, the number of graduates from business bachelor’s skills—just like programs has grown by roughly 80,000, and in the 2003–2004 school year, more than 300,000 individuals were awarded bachelor’s degrees in business. MBA students. By contrast, only about 140,000 people earned master’s degrees in business in that year. The similarities don’t Even more impressive than the number of BBA degrees being awarded is how much BBA programs are changing. An added emphasis on experiential learn- stop there. ing and global perspective is almost required these days, and deans are looking for ways to strengthen their undergraduate business curricula even more. The launching of BusinessWeek’s undergraduate business school rankings is expected to make many schools reassess—and perhaps upgrade—their BBA offerings. In by Sharon Shinn fact, it’s clear that some schools are modeling their enhanced undergraduate degrees after the degree that has been so visible for so long: the MBA. What’s more, some deans are starting to think that undergraduate education might give them a better return on investment. For years, the rankings race dictated that schools pour resources into their MBA programs, but the cost of recruiting and supporting grad students has led to rising expenses. “We’ve decided we’re not going to continue to elevate our resource commitment to the MBA,” says Daniel Smith, dean of Indiana University’s Kel- ley School of Business in Bloomington. “Instead, we are putting incremental resource increases into the undergraduate program, both in terms of dollar investments and faculty investments. To strengthen our presence in the marketplace, we want to produce more quality students and have a larger faculty producing high-quality research.”

26 BizEd November/December 2006 illustration by David Cutler BizEd November/December 2006 27 He’s not the only dean who expects to make such an access to visiting executives and attention from a career impact primarily through upgrades to his undergraduate counselor. “They get a little more hand-holding,” Smith program. To add more prestige to their programs and more points out. “The MBA has become a high-touch program, power to their brands, deans of business schools across the and we’re starting to offer the same services to our honors spectrum are refashioning their BBAs. and direct admit students.” There’s the M-word again. The more deans talk about The Basic Degree their undergraduate programs, the more it becomes clear how At first glance, it might not seem like the BBA has under- much today’s deans are modeling the BBA after the MBA. gone extensive changes. After all, at most schools, the BBA is essentially an arts and sciences degree girded with basic BBA as MBA business classes. According to Albert Niemi Jr., dean of The resemblance between the graduate and undergraduate Southern Methodist University’s Cox School of Business in degrees is particularly strong in two areas: globalization and Dallas, Texas, fewer than 50 hours of the typical 120-hour experiential learning. Both now permeate the undergraduate BBA degree are devoted to business. curriculum. Says Niemi, “If you look at the infrastructure behind Global perspective: At Cox, about 30 percent of the BBAs a liberal arts and sciences degree, there’s no significant have an international experience before they graduate, and difference between a political science major and a finance within five years, the school hopes that number is 100 per- major except finance majors have degrees that are more marketable.” But while that liberal arts bias continues, schools are packing undergraduate programs with more experiential A New Rankings Race learning, more global exposure, and better job prep. In addition, a few of the subjects traditional to MBA programs are making their way into the undergraduate cur- When BusinessWeek published its first rankings of under- riculum, says Robert Jenkins, dean of the Farmer School graduate business programs this summer, Dan Smith was of Business Administration at Miami University in Oxford, happy to find Indiana’s Kelley School comfortably placed Ohio. He notes that essential MBA topics such as leadership, at No. 10. But he realized that the undergraduate rank- ethics, supply chain management, and entrepreneurship are ings race had just begun. He says, “I looked at my under- infiltrating the BBA. Many undergraduate programs are graduate program chair and my associate deans, and I also emulating their graduate counterparts by offering more said, ‘Our lives will never be the same.’” course integration. Across the U.S., deans echo the sentiment. While “My own observation is that most pedagogical changes U.S. News & World Report has ranked undergraduate happen at the MBA level first and cascade down to the programs for years, its impact has been relatively minor. undergraduate level,” says Jenkins. Those standings are determined largely by reputation as Today’s BBA might also be spending more time in the b- participating deans offer their opinions of other programs. school, as more schools are admitting students directly from “The U.S. News ranking is a beauty contest,” says high school. By recruiting freshmen with excellent GPAs, Albert Niemi of Southern Methodist University. “But Busi- high SATs, and strong leadership potential, business schools nessWeek is asking undergraduates the same questions it are strengthening their programs by securing top students. asked MBAs 20 years ago. Are you getting a good deal? Meanwhile, freshmen are not only guaranteed a place in the Would you go back to that school? What’s your level of business school, but they often get special treatment during satisfaction? Since student satisfaction will be an important their first two years. part of the undergraduate rankings, schools will have to “Freshmen take enrichment programs, and they periodi- make sure they offer a rigorous experience along with cally have dinner with the dean. They bond together as an high-level satisfaction.” entering class like a new class of MBAs,” says Niemi of the That challenge is seen as an exciting opportunity by Cox School. some. “Because the U.S. News ranking is largely reputa- At Kelley, most of the direct admit students go into the tional, it’s hard to dramatically influence it,” says Smith. honors business program, which includes such benefits as “But BusinessWeek talks to the two constituency groups

28 BizEd November/December 2006 “It’s pretty indefensible, in today’s world, to be turning out graduates who don’t have significant global immersion.”

—Albert Niemi Jr., Southern Methodist University

cent. Niemi expects other schools to follow suit. “It’s pretty Experiential study: Many programs are also making sure indefensible, in today’s world, to be turning out graduates students get real-world training. Students at the Kelley who don’t have significant global immersion,” he says. School can participate in a series of workshops, yearlong Other schools—such as Warwick Business School in the for-credit courses that focus on a particular field such as U.K. and the Farmer School—are ramping up their inter- investment banking, consulting, or brand management. national options. This fall, the Farmer School launches its A professor hand-picks the students, teaches the content, China Business program for undergraduates, which requires reviews resumes, conducts mock interviews, and occasion- intensive language and cultural study, examination of Ameri- ally leads the students on trips to destinations such as Wall can and Chinese business practices, a summer internship Street. with a company engaged in China-related commerce, and At the National University of Singapore, students not one semester studying at a Chinese university. only can gain practical work experience through internships, Warwick offers a specialized international undergraduate but they also can participate in a consulting practicum. degree that requires students to take two foreign languages There, supervised by a faculty member, they execute actual at an advanced level and spend one year overseas at another projects at real companies. Says Joan Tay, deputy director university. Students in Warwick’s other degree programs also for the school’s BBA Career Services Office, “Students have can choose to add a year for international study, says dean to negotiate the job scope with the company, plan, research, Howard Thomas. assess, and make recommendations. The experience is entirely different from internships, as students take on strategic roles as consultants to tackle real company issues.” that matter most—the recruiters and the students. Well, At the Farmer School, experiential learning is the focus you can actually influence both of those groups by of a decades-old program called Laws Hall & Associates, improving your program!” which operates like a marketing and communications Improving programs will require a whole new mind- agency. Held every semester on the Ohio campus and every set, as undergraduate deans who never had to think summer in London, the program allows students to spend about rankings suddenly ponder how they can enhance a full semester working with a fee-paying corporate client their standings. “In the next go-round, I think a lot of such as Pillsbury or Procter & Gamble. A similar program in deans will be getting into the game,” says Villanova’s Farmer’s Interactive Media Studies program brings together James Danko. “At the same time, people like me are interdisciplinary student teams to provide digital solutions going to be thinking, ‘I don’t want to be 19. I want to be for technology-related problems. ten.’ So I think a lot of resources are now going to be Jenkins admits that these segments of the BBA cur- directed to undergraduate programs. It’s inevitable.” riculum sound like something that would appeal to a grad And that’s a good thing, Smith thinks. “As much as student. He notes, “At the end of the day, what makes we grouse about them, the fact is that MBA rankings a great MBA program? Strong leadership skills, strong have profoundly improved the quality of business educa- global perspective, strong experiential learning. Those are tion at the graduate level. I think you’re going to see the the components we’ve replicated in our undergraduate quality of undergraduate education ramp up dramati- program.” cally over the next decade.” And corporations are starting to notice. Deans report The probability is that rankings are here to stay, that recruiters are displaying more and more interest in points out Howard Thomas of Warwick Business School. BBAs that have better skills than the average undergraduate, “A dean who goes out to buy a washing machine or though less life experience than the typical MBA. a camera reads Consumer Reports or checks it out on “As MBA salaries have skyrocketed, recruiters have start- the Internet. I don’t see how that is different from indi- ed looking for students who are a little more astute than the viduals looking at business school rankings,” he says. run-of-the-mill undergraduate, but not really MBAs,” says “If we do a lousy job, we deserve to be drawn and Smith. “For example, in consulting there’s an incredible quartered down to the bone. Rankings may get business demand for business analysts that could be met by high-end schools to think about what they really offer as opposed undergraduates with a little specialized training.” Business to what they say they offer. And that may be a real schools are looking for creative ways to help their under- improvement.” grads fill that niche.

BizEd November/December 2006 29 “MBAs can sometimes be jaded. But if you tell undergraduates that they could be the next Bill Gates or Martha Stewart, they actually believe it.”

—Daniel Smith, Indiana University

What This Means for the MBA schools are upgrading their placement centers and adding So why would anybody need an MBA? That’s a question professional services to be certain students are ready for the that undergraduate deans are beginning to ask out loud. work world. “I do see a softness in the MBA hiring market,” says While Villanova works through a centralized university Danko. “Companies that used to hire full-time MBAs placement office, the b-school has launched a Center for instead might be hiring undergraduates that they can form Student Advising and Professional Development. There, to their own mold.” students are required to go through a “CEO program,” Adds Niemi, “If you’re turning out really high-quality attend professional development seminars, and have one- BBAs, you could cannibalize some of your MBA market.” on-one sessions with counselors to prepare them for the Does this bigger, better, smarter BBA graduate spell job market. trouble for master’s level business education? “I think the Similarly, at Indiana, Kelley students take two differ- jury’s still out,” says Smith. “For some students, a good ent three-credit hour courses on career development and undergraduate program will get them down the career path preparation. Classes not only cover professional develop- fast enough that they may not need an MBA. Including ment, business etiquette, resume presentation, and mock bonuses, some salaries for kids right out of the undergradu- interviewing, but give students a glimpse into what kinds of ate program are $60,000 to $75,000. My guess is, in five career paths are open to them. years, these people will be way up the career ladder, and National University of Singapore also offers a career prep they’d be nuts to go back and get an MBA.” program known as The Finishing School. There, students Still, most deans believe the MBA has an unassailable keep current on trends and industries, research companies place in business education, primarily as a tool that helps they’re interested in, and study corporate culture. “We individuals with some job experience switch industries. prepare our students at least one year ahead of gradua- “The MBA is largely a post-World War II phenomenon that tion by engaging them constantly in career events such as helped people make a career change,” says Niemi. “The recruitment talks, networking cocktails, forums, discussions, MBA was really intended for someone who didn’t have an workshops, regular e-mail updates, and individual career undergraduate degree in business, who found himself on a counseling,” says Tay. career path that he wanted to change. The best option was The specialized career center at SMU’s Cox School makes to go back to school, retool, come out with an MBA, and life easier for recruiters, Niemi believes, and is also a huge shoot off in another direction.” boost for students. “The best way to have satisfied students “The MBA provides an environment where really bright is to make sure they get great jobs at the end of four years,” people working together get a lot of experience in problem he says. “When BusinessWeek started MBA surveys in the solving and strategic thinking,” says Jenkins. “These stu- ’80s, the first place schools put resources was their career dents develop a level of confidence and strategic capability centers. Now that BusinessWeek is ranking undergraduate that is unique to an MBA based on age, background, work programs, I think you’ll see many schools start to offer more experience, and what they learn from their peers.” career services for BBAs.” Smith foresees a time when strong BBA programs will While not all business schools have specialized placement nudge MBA programs into new formats. “An individual centers, it’s clear that many of them will need to start pour- who has an undergraduate degree in business and six or ing more resources into grooming undergraduates for their seven years of experience, and who wants to go from being first jobs. Not only will improved placement centers help a business analyst to a consultant, might want to look at a schools earn higher rankings in student satisfaction, but they one-year MBA,” he says. “On the other hand, if someone also will help schools stay competitive with other programs has an undergraduate business degree but wants to skip actively courting undergraduates with revamped curricula from being a CPA to being a brand manager, maybe he still and services. needs the two-year program.” Bracing for the Future The Job’s the Thing The competition for students will only get tougher as under- As b-schools turn out more undergraduates ready for tough graduate business programs blossom, believes Quek Ser Aik, jobs in the real world, many of them are putting a greater vice dean for undergraduate studies and associate professor emphasis on helping students actually find those jobs. Some at National University of Singapore. “Online degree pro-

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grams might become a serious challenge, enabling working On the one hand, these students need so much more adults to gain a BBA without quitting their jobs,” he says. guidance than more seasoned MBAs. “BBA students cannot “We also see more competition from international schools usually bring to class the rich experience of the MBA stu- offering programs locally, because the BBA course is one of dents,” says Quek. “So the chances for learning from each the easiest programs to export.” other are much reduced within the BBA. It is also harder Rising demand for classroom space and increasing pres- to motivate BBA students to think strategically, since they sure to maintain high quality in their programs may also don’t even know how things work out operationally.” force many schools to tighten admission requirements, Yet an undergraduate program is “a wonderful time to which could create tension with alums who want to see their teach students the right kinds of things,” Thomas says. children enrolled at their alma maters. Yet while demand is “Undergraduate education is generally important, I don’t intense now, some worry about what will happen in a few care what subject it is. You’re teaching students to think and years when demographics predict a drop in the number of mature. This is the time when most kids are testing their college-age individuals. views of the world.” “Right now we have a big wave of echo boomers enroll- And often those worldviews are rosy. “Undergraduates ing, so we’re at the peak of undergraduate business educa- are so beautiful because they approach the world with wide- tion,” Danko says. “The question becomes, in the year 2010 open eyes,” says Smith. “MBAs can sometimes be jaded. when we know there will be a dip, what will the effect on But if you tell undergraduates that they could be the next quality be?” Bill Gates or Martha Stewart, they actually believe it. It’s But now, while enrollments remain high, deans face awesome.” very familiar challenges. As Warwick’s Thomas sums up, If undergraduate programs continue upgrading at the “They’re the same ones they’ve always been. Get the very current rate, there’s an even better chance that the next best students, hire the very best faculty, teach the very best business mogul will be hitting the streets very soon. As curriculum, in the very best facilities.” bachelor’s programs become tougher, more international, What makes such challenges special for these deans, and more focused on job skills, an undergraduate business however, is that they’re geared toward undergraduate pro- degree will become an even more prized commodity—while grams—and frankly, no matter how much BBAs may look business schools become even better training grounds for like MBAs, there’s still a key difference. Call it youth. the working world. ■z

BizEd November/December 2006 31 New Looks at the Old BBA

Two undergraduate s the flagship program at many business business programs are schools, the MBA has long garnered the lion’s share of resources and attention. re-examined to create Over the last few years, in fact, the MBA more integrated, has been the target of comprehensive meaningful, and Aredesigns, as business schools aimed to make their grad- relevant educational uate programs more innovative and relevant. During this experiences. time, the BBA has remained largely in the shadow of its educational big brother. Attention has shifted, however, as more business educators view the BBA program as a point of distinction for their schools and brands, rather than the lesser sibling to their graduate offering. Many schools are looking for new ways to provide undergraduates with more integrated coursework and more memorable, meaningful educational experiences. Two schools that have been through this process—the University of Maryland’s Robert H. Smith School of Business in College Park and Drexel University’s Bennett S. LeBow College of Business in Philadelphia, Pennsylvania—share the directions they’ve taken to design their brand-new BBAs.

32 BizEd November/December 2006 illustration by David Cutler BizEd November/December 2006 33 weren’t just allotting resources to their BBA programs. The BBA—Resized They were treating students as individuals, each with his or her own personal academic and career aspirations. The Smith School redesigns its undergraduate We knew we would have a challenge to offer both types curriculum to combine small-school community of environments in one program. NYU could draw on and big school opportunity. more resources than we had to support a BBA program; with its smaller student body, UNC was better positioned to offer individualized educational experiences. It seemed by Howard Frank impossible to find the time, staff, and financial resources to give each of our 2,800 undergraduates a specialized edu- or many years, the BBA program at the University of cational program. F Maryland’s Smith School of Business was no different Our Smith Undergraduate Fellows Program, however, from those at many other business schools. Our program allowed us to accomplish our educational objectives, within offered a number of courses and major concentrations our budget, by building these capabilities into our existing but was not designed to offer an integrated educational structure. The program divides our large freshman class experience. Students completed their general academic into eight smaller cohorts. Each group then progresses curriculum during their freshman and sophomore years; through a series of whole-class activities and specialized then, as juniors and seniors, they were “thrown over the academic concentrations. By creating smaller educational wall” from the general university into the business school, tracks within our larger academic structure, we can offer with little orientation. students the advantages that both small and large campuses Two years ago, we decided that our BBA program had have to offer. to be as central to our mission as our MBA, and we began the ongoing process of reinventing our undergraduate Community of Fellows curriculum. The result is our new Smith Undergraduate As Freshman Fellows, students begin their undergraduate Fellows Program, which launched with our 2006–2007 experience in our freshman lecture course, “Introduction freshman class. Our aim for the Fellows Program is to offer to 21st-Century Business.” This course is divided into undergraduates the specialized experiences and personal eight sections of 30 students each. Students also participate attention of a small school, as well as all the interaction and in other large, co-curricular courses over their freshman opportunity our large campus can provide. and sophomore years, including a one-credit practicum in ethics and corporate social responsibility, a one-credit Big by Nature, Small by Design practicum in professional development, and a one-credit Before we began our BBA redesign, we studied seven career explorations course. other undergraduate business programs. We paid par- In their freshman and sophomore years, students study, ticular attention to those at New York University’s Stern work, and play with their smaller cohorts, participating in School of Business and the University of North Carolina’s activities ranging from movie nights to service projects. Kenan-Flagler Business School. The Stern School’s pro- During their four years as Smith Fellows, our undergradu- gram was large, serving approximately 2,000 students; ate cohorts participate in internships in the United States it offered a weeklong orientation to incoming freshman, and abroad, field trips to businesses across the country, a freshman honors program, an executive lecture series, visits to the floor of the New York Stock Exchange, and mentorships, and subsidized international travel. Kenan- retreats and conferences that foster leadership skills. Flagler’s program was small and personalized, serving Beginning in their junior year, Smith Fellows will apply about 600 undergraduates, providing a number of experi- to one or more of 11 educational tracks, which include ential opportunities such as its global scholars “living and entrepreneurship, electronic marketing, supply chain man- learning” program. agement, global opportunities, Quality Enhancement Sys- The NYU and UNC programs represented to us the best tems and Teams (QUEST), the Business Honors Program, of two types of undergraduate environments—the diverse the Accounting Information and Assurance Teaching opportunities of a large school and the personal commu- Scholars Program, the Lemma Senbet student-managed nity of a small school. More important, these two schools investment fund, Reuters Financial Certification, the Six

34 BizEd November/December 2006 The structure of our tracks system gives us the freedom to try new things, fail, and try again, with the least amount of organizational trauma.

Sigma Fellows Program, and the Smith Research Fellows ments to provide students with a “special program experi- Program. Each track accommodates from ten to 100 stu- ence.” As a result, when we announced the creation of the dents, allowing them to specialize in specific areas of busi- Fellows Program, senior university management expressed ness without sacrificing their general business education. great enthusiasm for the new venture. In the entrepreneurship track, for example, we offer Finding enough faculty. We must create enough smaller four courses on the principles and practices of entrepre- tracks to accommodate each one of our 2,800 students. neurs, as well as co-curricular activities with the Smith However, each track requires a substantial commitment of School’s Dingman Center for Entrepreneurship. Entre- faculty and staff. preneurship Fellows participate in projects and workshops, Finding the funds. We knew that the Smith School would be help organize business plan competitions, and meet entre- the main source of funding for the Fellows Program. We preneurs and venture capitalists. In our international track, jump-started the program with $9 million of a 2005 gift students who have expressed an intention to earn dual by our namesake, Robert H. Smith. The university, alumni, degrees in business and a foreign language will take part in and other corporate partners also demonstrated their sup- study-abroad experiences and summer language immersion port through scholarship and special funding. courses. Our International Fellows also have the oppor- Making it fast and flexible. Finally, we knew that our new tunity to live in an on- model would have to be campus Language House, designed with built-in flex- where they will speak in ibility to allow for trial and their chosen language at error. The experimental all times, and to pursue nature of the Fellows Pro- international internships. gram allows us to roll out Each track takes a “learn- tracks almost immediately, by-doing” approach that as quickly as the next aca- gives students a jump-start demic year. For example, on their post-graduation we recently started a com- careers. putational marketing track. The new track isn’t a mar- On the Right “Tracks” keting major, but rather The Fellows Program an overlay on our overall marked a true break from tracks system. Consequent- tradition for the Smith ly, we don’t have to jump School. As a result, we knew through the usual univer- we would need to address sity hoops that require us several challenges to put to define the major and the program in place: then present it to a variety Changing the mindset. While of program committees for our faculty acknowledged approval. our undergraduate pro- Now that we have of- gram as important, many viewed it as less vital than the fered the new computational marketing track to the first MBA program. To get faculty excited about our new group of juniors, we are committed to offering it for two Fellows Program and tracks system, we began an intense years. We have the option to change, refine, or even elimi- campaign to promote the potential of our new BBA to nate it after two years. The structure of our tracks system faculty. gives us the freedom to try new things, fail, and try again, Convincing the administration. For any business school to with the least amount of organizational trauma. make major changes to its undergraduate program, it first must gain the buy-in of the university’s administration. In New BBA, New Possibilities our case, C.D. “Dan” Mote Jr., president of the University Only in its inaugural year, the Smith Undergraduate Fellows of Maryland, had recently issued a challenge to all depart- Program has already benefited our school in significant

BizEd November/December 2006 35 Deans ad 9/19/06 2:24 PM Page 1

Beat the Odds for Global Success.

ways. For instance, the Fellows Program has created a wave of faculty innovation. The challenge has captured The Undergraduate their energy and imagination—and harnessed their inherent competitiveness—as each department tries to create Portfolio the best new Fellows tracks. We realize that we still have questions to address: How LeBow College’s My LIFEfolio integrates will the selection mechanism work for each track? And in coursework across the curriculum and offers how many tracks can students participate? Undergraduate students have tremendous energy and appetite in enrich- a repository of knowledge for students ment programs, and some Smith students already partici- to access and augment throughout their pate in multiple opportunities. However, students’ appe- undergraduate careers. tites for learning may inspire them to take on more than they can handle. The Smith School must consider these by Frank Linnehan issues as we move forward. While we want our students to take advantage of opportunity, we also want them to keep their educations as balanced and focused as possible. bout two years ago, George Tsetsekos, the dean We also plan to encourage more cross-disciplinary Aof Drexel University’s LeBow College of Business, collaboration, including a number of joint recruiting asked the business faculty to develop a plan to revise programs with other colleges within the university. These our undergraduate curriculum. As we delved into the collaborations will join our International Fellows program, process, we realized that the problem was not with our which works in partnership with the foreign languages undergraduate business courses, but with the process of department; and the QUEST track, which recruits stu- undergraduate education itself. dents from the A. James Clark School of Engineering and At one meeting, one of our faculty members pinpoint- the College of Computer Sciences. ed the true difficulty: “Most of us, but undergraduate Deans Conference Ultimately, we plan to create as many as 30 Fellows students in particular, have a very short half-life of knowl- tracks, with 50 to 150 students each. New tracks under edge,” he said. “After students take a course’s final exam, consideration include sports management, real estate man- they forget what they’ve learned. Then, they go into a February 7– 9, 2007 A conference that gives you the edge to maximize your agement, biotechnology management, nonprofit manage- course that builds on that previous knowledge and tell the Las Vegas, Nevada, USA contribution to today’s global society. How does a business ment, consulting, leadership, and the arts. We believe our professor, ‘We’ve never seen this material before.’” overlay model, which places the Fellows track system over We shouldn’t be surprised that students often don’t school “beat the odds” for success in an increasingly competitive, our existing system of majors, holds great promise not link one course to the next. Textbooks are expensive— global environment? More than 300 deans will meet in Las Vegas only for the Smith School, but for other business schools 95 percent of our undergraduate students sell their books as at the famous Caesars Palace to answer this challenging question. searching for a way to maximize the opportunities within soon as they’ve finished the courses that require them. They their BBA programs while still working within their own do not maintain a cache of reference materials to create At this conference exclusively for deans and business leaders, budgets and programs. continuity throughout their undergraduate education. In you will be able to network with peers from around the world Our graduate students have long benefited from addition, many undergraduate business students take half and discuss the most important issues facing business school specialized educational experiences tailor-made to their their courses outside the business school, making it doubly career aspirations. With the enthusiastic support of our difficult to achieve integration across the curriculum. leaders today. faculty and external community, we hope to give our To solve this problem, we decided to create My LIFE undergraduate students the same attention, opportunities, folio, an online undergraduate portfolio that our students Register now for AACSB International’s annual Deans Conference and outlook on their business education and careers. After will maintain and build from freshman through senior all, when our BBA students graduate, we want them to years—and even long after graduation. We noted that and stay ahead of the game. For details and to register visit: have more than a major and a diploma. We want them to other schools were using portfolios, but many used them www.aacsb.edu/conferences view their time in our undergraduate program as uniquely sporadically or only for purposes of learning assessment. memorable, meaningful, and essential to their success. For our purposes, we envisioned a comprehensive online repository of information and knowledge that students Years Howard Frank is the dean of the Robert H. Smith School of Business at could use to retain and refine their skills throughout the the University of Maryland in College Park. learning process. 9

36 BizEd November/December 2006 Education is a very competitive market, and every student we lose—for financial, personal, or other reasons—is a loss for our school and our faculty.

Four Essential Areas erature,” which will be a capstone course in our students’ My LIFEfolio launched in the 2006–2007 academic year writing portfolios. Students will have the option to upload and is currently being used by all 500 of our freshmen. The their work into the portfolio to create a record of writ- electronic portfolio is divided into four essential skill sets ing skills for themselves and future employers. The math that we believe our students will need to make the most of department will also be creating portfolio assignments, their education and their jobs after graduation: which will live in My LIFEfolio for future use. Writing. In planning the content of My LIFEfolio, we conducted focus groups with employers, who told us that new Retention and Reflection hires often have difficulty in communication and writing We had originally planned to support the new portfolio skills. The writing component of the portfolio allows stu- program with a $150,000 grant for curriculum reform, but dents to store their papers, track their progress, and address when we failed to get the grant, we looked at other options. their weaknesses. Fortunately, Drexel University al- Quantitative Reasoning. Incoming ready had licensed an electronic freshmen may come to us with portfolio product from ePortaro, excellent SAT scores and take all a company based in Sterling, Vir- the required math courses. But by ginia. Some student organizations the time they come to the business had taken advantage of the software, school in their junior years and enroll but the program was not being used in economics, statistics, and finance in a systematic fashion and its basic courses, many have forgotten their templates did not really suit the pur- math skills. By using My LIFEfolio, pose we had in mind. students can now retain and refer However, we were able to work back to course notes, coursework, with ePortaro to design electronic and relevant materials from their portfolios that had the look and undergraduate math courses. function that we required and that Career. About 70 percent of were compatible with our course undergraduate business students management software, WebCT. As at LeBow College take part in students upload their assignments our co-op program, which allows them to combine their into WebCT, they also will be able to transfer their work into academic study with three six-month periods of full-time, their portfolios automatically. paid, professional employment. The career area of My If an undergraduate portfolio system were used only as LIFEfolio allows them to create interactive resumes that a repository for assignments and homework, it would be link to projects they’ve completed in school, store perfor- nothing more than an electronic file. Our faculty wanted to mance appraisals from their co-op employment, and create make sure that My LIFEfolio would become a living docu- a career plan. ment for students, which would allow them not only to save Business Concentration. During their junior and senior years information but also to build a base of knowledge and con- at LeBow, students often choose a major concentration tinuous improvement. in business. This area of their portfolio allows them to Consequently, we are developing ways for students to create continuity between their basic foundation courses reflect on their portfolios and undergraduate education. For and their advanced, specialized courses. To support this example, we are building a one-credit career course, which function of My LIFEfolio, we’ve asked each of our depart- will be taken the first term of senior year and will require stu- ments to upload relevant materials into the program, dents to give a 20- to 25-minute presentation of their career including basic materials and case studies that span two or portfolio to faculty. In their presentations, students will three years of study. reflect on what they have learned, what they have accom- Creating these four areas of My LIFEfolio has required plished, what their plans are for their careers, and what their strong faculty support, not just in the business school but expectations are for the future. across the Drexel campus. The English department, for We have many students who reach their senior years still example, has created a course called “Business and Lit- undecided about what path to take after graduation. We

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hope that if we build into the portfolio this type of reflec- So, we also want to build elements into the portfolio that will tion and capstone experience, students will be better able to connect students to campus while they’re out on co-op, such identify their passions and talents. They’ll be able to see what as online courses they can take while they’re working. they like to do and put that into perspective as they set their These efforts, of course, are to enhance both our under- career objectives. graduate curriculum and our students’ satisfaction with their education. Like other business schools, we want to retain A More Meaningful BBA each of our students through graduation. Education is a We are still working through three primary challenges with very competitive market, and every student we lose—for the My LIFEfolio process. For instance, we currently lack the financial, personal, or other reasons—is a loss for our school connectivity that we would like between the portfolio and our and our faculty. By making our students’ experiences more career development software. We are working with ePortaro satisfying and meaningful, we better ensure that they will and our career services to make that connectivity possible. view Drexel as an integral part of their education as students Second, we must create a system where students are and as alumni. actively using My LIFEfolio on a continual basis. We realize Now that My LIFEfolio is in its first year, our faculty are that the portfolio system will not work if we make it volun- seeing more possibilities for it, not only for promoting course tary. Much of its use must be course-embedded, whether integration and learning assessment, but also for instilling in students are taking our business courses or history, math, students a different attitude toward learning. We want stu- and political science courses through the university. We are dents to understand that education is not a one-off, course- working with faculty throughout the university to make the by-course experience, but a continual, lifelong process. portfolio an active part of our students’ educational lives. In the end, we want to make our students’ experi- And third, we must use the portfolio to keep our students ences as meaningful as possible. My LIFEfolio is a tool for connected to the school while they’re working on their co-op learning and a historical record that students can use not experiences. Too often, we’ve heard our students say that the just as business undergraduates, but as successful business best thing about being an undergraduate business student at professionals. ■z Drexel was our co-op program. That response concerns us— our students were saying that their best learning experiences Frank Linnehan is the associate dean of undergraduate studies at Drexel at Drexel took place when they weren’t even on our campus! University’s LeBow College of Business in Philadelphia, Pennsylvania.

BizEd November/December 2006 39 The Rankings Game

Especially in the U.S., media rankings of business schools have been a contentious issue almost since they first hit the newsstands in the late 1980s. While administrators acknowledge that the rankings may have had some positive impact on business schools, most argue that the rankings are often based on To gain a competitive flawed data and arbitrary measures that don’t accurately reflect the quality of business school programs. For better or worse, however, the number of edge in the high- media rankings continues to escalate. The rankings have become a truly international issue. stakes rankings In Europe, where the popularity and influence of rankings have soared, deans and other business school leaders wrestle with many of the same game, European concerns and frustrations expressed by their counterparts in other parts of the world. The perspectives, influences, and rationales that influence academic leaders Europe’s business schools add to the complexity of the ranking issue. To start, Europe’s social, cultural, and historical diversity is extraordinary. Fis- must understand how cal systems, welfare programs, and the purchasing power of currencies vary widely. These differences do not establish a smooth playing field for the diverse European rankings game. Moreover, the rules of the rankings game can seem murky and abstruse, markets and subjective even for schools with extensive resources. Schools may achieve remarkable success in fulfilling their missions, invest heavily in physical resources, recruit methodologies skew better professors, and successfully launch graduates into the corporate world—but they cannot be certain that their rankings will improve. the playing field. Even so, academic leaders in Europe agree that high rankings can improve visibility, strengthen brand recognition, and attract applicants, faculty, recruiters, and donors. To gain that advantage, European business by Andrea E. Gasparri schools must better understand the perspectives, influences, and rationales that influence them, so that they can develop more effective strategies and philosophies concerning the ever-present rankings. Such exploration may be helpful, not only to business school leaders in Europe, but to schools across the globe.

The Bologna Declaration Europe’s ranking race became even more complex after June 1999, with the establishment of the Bologna Declaration. Now undersigned by 45 countries, the Bologna Declaration marks a transformation of higher education in Europe. The Declaration’s main objectives are twofold: It aims to promote cooperation among its signatories to pursue quality assurance and to unite the university systems of its signatories into one “interchange- able system.” Many of the signatory countries already have implemented the principles of the Bologna Declaration, signing agreements for the exchange of credits, students, and professors.

40 BizEd November/December 2006 illustration by Neil Brennan BizEd November/December 2006 41 It also seems certain that the Bologna Declaration will methodologies. And since there is no common standard compel increased competition among universities and for data collection, business schools can be hard-pressed to schools for funding and status. In fact, many business provide accurate, comparable data. school leaders in Europe acknowledge that the Declara- For example, salary measurements are riddled with prob- tion will likely spur even more focus on the rankings, as lems. For Europeans, the meaning of the term “salary” is schools increasingly view them as both benchmarking uncertain. Is this net? Gross? Does it include contributions tools and as a means to showcase their strengths. The and taxes paid by the employer on behalf of the employee? Financial Times has already initiated a new ranking on the Gross plus fringe benefits and delayed payments, such as Bologna Masters (MSc), supplementing those on MBA, the staff severance fund? What about fiscal rules, social EMBA, and executive education. More publications are security systems, salary composition, fringe benefits, and likely to follow suit. currencies? Given such differences among countries, defin- Is this good for Europe? Many believe that the rankings ing salary for ranking purposes is a minefield. To make will play a positive role, but there are some risks—namely, matters worse, sometimes the media give no indication at that academic leaders will lose perspective on their true all regarding the definition of salary. missions. As external factors such as the Bologna Decla- Severance funds represent a good example of a data com- ration influence the rankings, many deans will ask them- parability point. These funds, which exist in some countries selves, “How can my business school improve its position and companies, represent an important salary measure for in a ranking?” They may invest resources in recruiting bet- many Europeans. In certain cases, these funds represent one ter professors, adding programs, and improving their edu- month’s salary per year. By not including severance funds cational offering, not to better their schools, but to better in their calculations, the media rankings do not take into their ranking performance. Ironically, such efforts will not account about 8 percent of the real value of paid salary. guarantee that their schools will improve their rankings, as Another source of potential salary miscalculation is the they do not guarantee such a result today. annual holiday allotment for employees. In continental Some of these factors are connected to purely statistical Europe, for example, that value is in the range of 30 days; facts, while others are linked to the parameters defined by each ranking, or to monetary, fiscal and welfare issues, all of Variation in rankings over time which can cause marked fluctuation in the rankings. Those leaders who focus too heavily on these fluctuations risk losing sight of the importance of real improvement factors. 10

Understanding the real meaning of the results of the rank- 20 ings is, therefore, of paramount importance for all business school stakeholders. 30

40 Understanding the Obstacles In addition to confronting the pressures of external forces, 50 Position European schools must deal with problems that many 60 believe are inherent in media rankings. The compilation and comparability of data, stability of results, and the influ- 70

ence of weights are major issues. 80

Compilation and Comparability of Data—Business schools continu- 90 2006 2005 2004 2003 2002 2001 ally cope with problems inherent in compiling their data for the rankings. Cost is one issue, of course; but there are The positions of the top 25 schools in Financial Times’ full-time MBA also risks of violating privacy laws, of conflicting interests in rankings over the past six years have remained reasonably stable. In the terms of advertising, and in the possibility that the respond- next 75 schools, however, changes in position seem more unpredictable, ing sample may not be representative of the institution. as some schools increase their positions, some decline, and some But perhaps of more concern is that media organizations fluctuate significantly. can provide little assurance that all schools apply consistent

42 BizEd November/December 2006 Year after year, changes in position of various schools in the media rankings seem correlated more to statistical noise than to actual changes in the schools’ performance.

in the United States, it’s around ten days. The difference in the schools’ performance. Year after year, changes in posi- terms of total working days per year is close to 10 percent, tion of various schools in the media rankings seem corre- which equates to an approximately 10 percent difference lated more to statistical noise than to actual changes in the in salary either in terms of a better standard of life or in schools’ performance. terms of other working opportunities. In the Financial For example, a review of the full-time MBA rankings of Times MBA ranking, a 10 percent difference in salary could the Financial Times over the past six years indicates that easily mean a change of some 15 positions for schools in the schools in the first group of 25 are reasonably stable. the mid-range. In the next 75 schools, it’s a different story. The changes These differences, which are not taken into account in in this second group appear substantial. Some schools some of the rankings, are significant. In addition, the fiscal increase their positions systematically, some decline. Some implications connected to pension funds and health care go up and down in a sort of sinusoidal pattern while others systems cannot be neglected, in principle, without an influ- remain stable. ence on the results of rankings that refer to the salary as the If the same data is compared again two years later, the main comparison parameters. average absolute change of the schools in the second group The most accurate rankings take into consideration the of 75 is 12 positions between the years 2005 and 2003, changes in relative prices by adjusting them according to while that average change increases to 15 when years 2006 the Purchasing Power Parity and the average salary per and 2004 are compared. industry. No ranking, however, takes into account factors This analysis seems to suggest that “shock absorbers” such as fiscal differences. should be applied in the rankings, as has already been done in some of them. Even better, emphasis should be placed Stability of Results—Even if all rankings data were accurate on the three-year average position, as done in others. A and true, adjusted to account for fiscal differences, holiday year-by-year evaluation appears in principle to be mislead- allowance, and other variables, there is little certainty that ing, at least outside the first group of schools. the results of the rankings would be a precise reflection of Not surprisingly, if schools’ positions in the various rankings for 2005 are charted, there is a wide distribution of results as positions change depending on the parameters Distribution of changes in FT’s MBA ranking of the ranking. This is understandable, given that the media between 2006 and 2004 rankings refer to specific programs and not to the school as 12 a whole. Even so, many academics and consumers share a 11 tendency to generalize a school’s ranking for a given pro- 10 gram to all the programs of that school. Business school 9

8 leaders must guard against that tendency and honor the

7 limitations of each ranking’s findings.

6 5 The Influence of Weights—Another “weighty” problem is that 4 each ranking publication chooses different parameters by 3 which to compare schools and adopts its own weighting 2

Number of Business Schools system of those parameters. Of course, publications have 1

0 the right to choose their own weighting systems, provided -32 -24 -22 -20 -16 -14 -12 -10 -8 -6 -4 -2 0 2 4 6 10 12 14 16 18 20 22 24 28 30 32 they are clearly indicated. Still, it’s easy to wonder what the Percent change results might be if small changes were made to the weights Between the years 2005 and 2003, the average absolute change of a particular publication employs. What would a “sensitivity schools ranked from 26 to 100 is 12 positions. When positions in analysis” show? 2006 and 2004 are compared, however, that average change increases To conduct a thorough sensitivity analysis, the whole to 15. Such variation suggests that year-by-year evaluations may be calculation process of a ranking’s raw data would have to misleading; emphasizing three-year average positions, as some rankings be reproduced—an impossible task, because not all the raw have already done, may reflect a school’s performance more accurately. data is available. However, simulations, which use a simplified calculation model and available data, can give at least

BizEd November/December 2006 43 Any interpretation of the rankings should be done with an awareness of how weights can significantly influence results.

a preliminary indication of a trend. Five simulations were be made clear that position was determined “according to conducted involving two of the most important parameters that specific weighting system.” in the Financial Times’ MBA rankings: salary and salary percentage increase. Rankings and Ratings The first simulation was run using the publication’s own Such subjective weighting systems beg the question: Can system, which weights salary and salary percentage increase rankings be trusted at all? Not if one views them as valid at 20 percent each. Successive simulations modified these comparisons that account for the diversity among business weights to 18 percent and 22 percent; 15 percent each; 21 schools, not just in Europe, but in the global market. In percent and 19 percent; and 25 percent each. The weights physics, for example, representing a complex phenomenon of the other parameters were adjusted accordingly. with a single number requires researchers to follow similarity The simulation showed that the relative positions among laws. As one might suspect, scientists find it rare that a com- schools can change significantly when the weights are plex phenomenon can be represented by a single number. changed even slightly. Minor changes in the weighting sys- This has happened only in a few cases and has been deter- tems cause a school’s relative position to another school to mined by very famous scientists, like the Mach number for change by up to ten positions. As this simple experiment supersonic speed in different media. In the majority of cases, indicates, any interpretation of the rankings should be done it’s impossible to reduce any event to a single number—just with an awareness of how weights can significantly influence as it’s impossible to confine the characteristics and offerings results. A school may achieve a certain position in a certain of a business school to a single numerical rank. ranking for a certain program in a given year, but it should As business school administrators know, business school

Reactions to Rankings

Rankings have become increasingly influential in Europe, comprises representatives of 20 European business schools, especially international rankings such as those published by also is exploring the subject of rankings in more detail. The The Financial Times and BusinessWeek. But in some coun- group plans to analyze the effects of the rankings in the Euro- tries, national rankings are having an even greater impact, pean market and make proposals to improve the system. The driving competition to higher and higher levels. objective of the affinity group is to stimulate the debate in a In France, for instance, many schools have pursued “mul- constructive way. Its members have adopted the principle that tiple accreditation,” a characteristic that is prized by French “rankings should help the community to understand the values national rankings. As a consequence, business schools and differences of academic institutions. They should tolerate in other parts of Europe have followed suit, applying for diversity and give clear signals on the intrinsic strengths and EQUIS, AACSB, AMBA, and national accreditations, with weaknesses of systems building upon very different traditions, different peer review teams often visiting candidate schools as well as different social, political, and economic contexts.” every year. Yes, schools benefit from the exchange of expe- Preliminary recommendations have already been rience the review teams offer, but pursuit of multiple accredi- released by the European Affinity Group for extended dis- tations can be costly, in both time and money. cussion on the AACSB Web site on data collection, evalua- Given the attention European business schools are giving tion of research, governance, job placement, salary, inter- to the rankings, two groups have elected to study the issue nationalization, reputation, and methodology. in more detail. For example, the European Foundation for A comparison of various ranking procedures is also being Management Development (EFMD) is working on rankings carried out by the European Affinity Group. Special attention through an open discussion with deans and directors. It is being given to German and Swiss universities, which have aims to issue an updated version of its position document. decided to utilize online rankings where visitors can personal- AACSB International’s European Affinity Group, which ize their choices, according to their specific requirements.

44 BizEd November/December 2006 The only rational solution seems to be to go toward a Positions in various MBA rankings in 2005 combination of rankings and ratings. If publications offer 0 the public both options—rankings based on a single param- 10 eter and ratings based on many parameters—they maintain

20 their readership and offer a more valid basis of comparison. Everyone receives the benefits of rankings and must cope 30 with fewer of their inherent drawbacks. 40 Right now, the best course of action for European

50 schools is to educate all stakeholders about what rankings Position measure—and what they don’t. European schools may be 60 new, comparatively speaking, to the rankings game. Still, 70 they must develop strategies that may lead to greater value 80 and accuracy of rankings on a global basis. Business schools

90 everywhere must participate in this effort. ■z

Economist Which MBA Financial Times America Economia Wall Street Journal Andrea Gasparri is the managing director of SDA Bocconi’s School of Different publications rank different aspects of schools’ programs Management in Milan, Italy. Gasparri also serves on the board of AACSB sometimes even in different geographical areas, so it’s no surprise that International and is a member of AACSB’s European Affinity Group. the positions of schools vary widely from publication to publication. The danger is to generalize the ranking for a specific program to all programs Ranking simulation using alternative in a business school, a tendency that administrators and consumers alike weighting systems should avoid. G S1 S2 S3 S4 S5 13

rankings do not respect similarity laws; they’re currently 17

driven more by the business of publishing than by science. 21 The fact that rankings results vary so widely from one publication to another is proof in itself that the information 25 should be interpreted with caution. Factor in the diversity 29 of schools in Europe—and around the world—and such interpretations become even more complex. Rank 33

To offer useful and valid comparisons, rankings should 37 refer to only one parameter. For instance, the Fortune 500 ranks companies based on their revenues. Forbes magazine 41 ranks CEOs based on compensation. Business schools, too, 45 could be ranked according to the number of programs, the size of their student body, or the percentage of interna- Five simulations show what happens in the positions of the second group tional faculty. of 20 schools in the Financial Times’ MBA rankings when the weighting To compare multiple facets of business schools, a system system is slightly changed. The starting simulation depicts the FT’s of ratings would be much more appropriate—and more weight of two factors at 20 percent each. Then, subsequent simulations reliable. Much like a report on new digital cameras might changed those weights to 18 percent and 22 percent (S1); 15 percent award each model a number of stars, rather than a specific each (S2); 21 percent and 19 percent (S3); 15 percent each once again, number, based on a complex comparative methodology, but with a different weighting system (S4); 25 percent each (S5). As publications could use a similar system of ratings. However, the chart above shows, minor changes produced changes of up to ten ratings are less appealing to readers and publishers than places in the relative positions of two schools. Such variability indicates rankings, which are tremendously popular and attract wide that the interpretation of the rankings should be done only with the readership. That mass audience for rankings makes their awareness that weights can significantly influence the results. continued presence all but inevitable.

BizEd November/December 2006 45 The Law-Abiding Executive

ccording to some estimates, CEOs spend approximately 20 percent of their time dealing with legal issues; yet their formal business education typically leaves them ill prepared to deal with matters related to the law. Doing business without understanding the legal system is like driving a Acar without understanding all the rules of the road. You could be buckled up, obeying The law can be a the speed limit, and paying the utmost attention to safety—but you’re still headed for disaster if you’re driving on the wrong side of the white line. manager’s best friend Today more than ever, executives need a basic education in legal literacy, because the law touches virtually every decision a manager makes. The wrong decision—or or worst enemy. the right decision made too late—can cause a small problem to mushroom to a crisis. Meanwhile, more regulation, more personal liability, more criminalization of civil One attorney wrongs, and more multibillion dollar verdicts significantly raise the overall cost of doing business. maintains that In the U.S., for example, the Sarbanes-Oxley Act is a recent regulatory buzz saw that has ripped through publicly traded companies. The law was adopted in an effort b-schools must make to restore investor confidence in the wake of the Enron and WorldCom scandals. Yet, rigorous deadlines for compliance with SOX and the high costs associated with it have sure their students left some executives so battle-fatigued they just want to leave all legal issues to the lawyers. But they can’t; managers, not lawyers, are the frontline decision makers. achieve the legal The best course of action is to incorporate legal literacy into the business’s decision-making process. Legal literacy lets managers avoid predictable surprises and con- literacy necessary trol legal costs that could otherwise detract from their bottom line. Best of all, it lets them manage the company’s legal risk instead of being managed by it. This leverages to keep them on the the law into a strategic competitive business advantage.

right side of the law. It Starts with Education Traditional business educators focus on so many issues vital to commerce—accounting, finance, marketing, operations management—but ignore the legal risks that by Hanna Hasl-Kelchner can derail their students’ success in all these business areas. Even worse, I have seen professors sometimes treat these legal issues with disdain. Take, for example, the finance professor who tells his students that insider trading laws undermine market efficiency. While that conclusion may have some mathemati- cal merit, it fails to respect the fact that markets serve society, and society values fair- ness. The use of inside information is unfair. To keep markets equitable, we have laws and regulations that set the standard for acceptable behavior. Another example is the accounting professor who says it’s pointless to have laws discouraging accountants from preparing the books they will later audit because no firm would damage its reputation by acting improperly and risking a conflict of interest. That comment, which I heard prior to the Enron-Arthur Andersen debacle, ignores the realities of decision-making psychology. In the case of Andersen, the members of the accounting team were motivated to keep the client happy because they were experiencing the loss aversion associated with the fear of losing millions of

46 BizEd november/december 2006 illustration by J. W. Stewart BizEd november/december 2006 47 Too many managers are focused on one area of business—the balance sheet or the marketing challenges—to notice that they might be in legal trouble in some broader area like employee relations.

dollars in revenue. They developed a decision-making blind explains key concepts but affords students little opportunity spot that ultimately led to Andersen’s demise. for applying them strategically. I’ve also seen the law disregarded in a class where the pro- Sometimes business schools will supplement their curricu- fessor discusses what happens when business negotiations la with courses from the law school that focus on corporate break down. Instead of focusing on the substance of nego- governance and organizational structure issues. These issues tiation and why it’s important to understand differing points impact long-term strategy, but ignore routine day-to-day of view, this professor disparages lawyers in general. Unfor- business transactions—where many managers can get into tunately, his attitude leaves students with the impression that trouble. the law and lawyers are inconvenient roadblocks. Ironically, at most schools, business students are not al- Such attitudes—especially those that paint lawyers as re- lowed to enroll in first-year law courses, such as contracts and dundant or even detrimental to business—unwittingly pro- torts, that would be more relevant to their careers. But even mote overconfidence in business students if they were, classes offered in classic law and lead them to believe that the ends jus- school style would be of little help. Law tify the means. Worst of all, students who students use the Socratic method to de- take on these same attitudes tend to en- construct appellate legal decisions, study- gage in aggressive business practices once ing what doesn’t work to figure out what they become managers. They are prone might work. This system isn’t of much use to take extra legal risks—triggering le- to business managers who are trying to gal liabilities ranging from negligence to look forward and manage latent legal risk brazen malfeasance—because they fail to in their enterprises. recognize until it’s too late the avoidable If the law school case method is unsat- opportunity costs the legal system imposes isfying for business students, and typical on them. ethics courses don’t teach them what they If these managers continue to pursue need to know, how should they learn about aggressive at-risk business behaviors, their managing a business’s legal risks? I believe bad habits eventually will catch up with the best solution is a cross-functional, inte- them. Their pricing strategies will run grated legal literacy course that combines afoul of antitrust laws, their accounting elements of both business and law. will invite regulatory scrutiny, or their employment practices will result in class action lawsuits. At that point they’ll be Crafting a Course learning about legal risk management the hard way, through When designing a legal literacy course, a school must strike expensive trial and error—or worse, error and trial. the right balance between helping students reach an intellectual understanding of core concepts and giving students the Ethics Versus Law tools to apply them. A school might offer one course that Many business school administrators believe they are already spans two semesters, a one-semester course, or a combina- addressing the issue of aggressive, overconfident manag- tion of introductory and upper-level business law courses. ers. In the post-Enron environment, schools have placed a Generally speaking, a successful legal literacy course has renewed emphasis on ethics, but most of these courses fail three components: the right content, the right presentation, to explore the overlap between law and ethics. Even more and the right teachers. rarely do they tap into the spectrum of legal tools available n Content. Business and law speak different languages. to achieve superior business performance. When studying legal literacy, business students first must I know of only one top business school—the Wharton build their legal vocabularies. But a word of caution: A vo- School of Business at the University of Pennsylvania—that cabulary data dump can quickly turn into “buzzword bingo” includes law as one of its five required core disciplines. Other if the data is not enriched by context—if the legal concepts schools typically offer business law as an elective or not at are not explained in terms of how they can affect an execu- all. In those electives, the school focuses on institutional is- tive’s day-to-day decision making. sues such as the branches of government, the court system, Case studies that allow students to see the concepts in and basic business law concepts. The rudimentary approach action help drive home key points. Take, for example, the

48 BizEd november/december 2006 Coursework for Business Law

Any school that wants to prepare an interdisciplinary legal literary course should cover the following topics in the curriculum: Contracts. Business involves the sale of goods or services. concept of joint and several liability. In a joint venture situ- Transactions are contracts. Therefore, contract law is pivotal. ation, all of the joint venture partners are on the hook for Antitrust law. Businesses compete with each other, and all of the liability incurred by any one of them. Most people they must do so fairly. Antitrust laws regulate unfair trade assume that liability among partners is proportional. Com- practices such as price discrimination. mon sense suggests that an individual is only responsible for Employment law. The farther executives climb up the cor- his own actions. porate ladder, the more time they will spend on employment Joint and several liability, however, is imposed by opera- issues. Managing those issues well helps them avoid unnec- tion of law. It allocates the responsibility automatically for essary lawsuits. everyone whether they know it or not—and therein lies the Torts. Product liability can translate into huge legal costs problem. A case study could present a joint venture in which and bleeding balance sheets. In the rush to market, execu- one partner is a wheeler-dealer with a high risk tolerance. tives may want to gloss over unfavorable product develop- Scenarios could show how quickly cash flow projections are ment results. But that attitude can result in class action law- invalidated when he makes one false move and everyone else suits (as in breast implant cases) or in a massive number of becomes responsible for his actions. individual lawsuits (Vioxx cases). Moreover, as was true for Once the hidden risk of joint enterprise is unmasked, busi- asbestos products manufacturer Johns Manville, the crushing ness professors can use the case to show how ignorance of the weight of litigation can drive a company into bankruptcy. law might drive a business into bankruptcy. Such context also Intellectual property law. As information increasingly gives the professor an opportunity to teach risk management becomes the coin of the business realm, it becomes more techniques such as contractual indemnity provisions and due important to protect intangibles such as ideas and inven- diligence. Best of all, students learn the ability to minimize tions. An understanding of intellectual property law can risk while maximizing opportunity. help a manager protect a business against loss, strengthen Given that the MBA curriculum is already a crowded ros- market brands, and create bona fide assets. For instance, ter, most schools do not have the luxury of offering a wide when the Internet company Pets.com failed, its biggest asset variety of business law courses. That’s why they need to make was its sock puppet logo—which sold for more than the the few courses they do have count. Securities law and the operations of the company were worth. specifics of insider trading may be sexy, but not every busi- International law. Global markets require managers to be ness is publicly traded. Spending precious classroom time on conversant with legal systems around the world. In the U.S., a legal subject with marginal value dilutes the legal literacy a binding contract is created by offer, acceptance, and experience. Instead, a legal literacy course should include consideration; in most parts of the world, it also requires concepts that the majority of students will encounter and price. An executive who assumes U.S. contract law applies that affect the widest range of industries. in other countries may think he has an enforceable contract n Presentation. A legal literacy course should show students when he really doesn’t. how legal issues are part of the chaotic mix of day-to-day Attorney-client privilege. Attorney-client privilege was business and how these issues are attached to decisions that created to allow for the free exchange of ideas between executives make every day. It should give students the ability lawyers and clients and to keep those discussions within to notice what’s going on around them that could poten- the confines of that relationship. Clients cannot be forced to tially cause trouble. Too many managers are focused on one testify about legal advice they received from lawyers hired area of business—the balance sheet or the marketing chal- to represent them for that purpose. However, if an individual lenges—to notice that they might be in legal trouble in some gets a second opinion from a friend who happens to be a broader area like employee relations. lawyer, but who has not been retained to represent the com- In a famous Harvard psychology experiment, volunteers pany in this matter, the privilege has just been waived. Now were told to view a short film of a basketball game and count the executive does have to testify. the number of passes the players made. Partway through the It’s very clear that law and business intersect at countless film, a man dressed in a gorilla suit walked into the room, points. Business schools that cover these points in the class- tried to distract the volunteers by beating his chest, and then room will give their students the ultimate advantage in the walked out. Half of the volunteers were so intent on watch- corporate world. ing the basketball players that they did not notice the gorilla. The corollary lesson is that when managers concentrate too

BizEd november/december 2006 49 SJU428 BIZ ED AD EMBA.-Dec 9/25/06 9:53 AM Page 1

Business educators can help put students on the right side of the law by teaching them The HAUB Executive MBA. to appreciate the central role law plays in business sustainability. Breadth x Depth

hard on one area of business, they miss issues related to an- professors have not practiced law beyond the level of a third- other area. They can’t afford such a narrow focus. or fourth-year associate at a prestigious firm. As a result, they The best learning experiences simulate real-world corpo- have not been privy to partner-level client discussions and rate pressures. For example, when Andrew Grove was CEO the strategizing that lies at the heart of preventive law. On of Intel, he wanted to ramp up his employees’ knowledge of the flip side, law professors who practiced law long enough antitrust law. Recognizing that perfunctory rules and train- to attain partner status might have been too specialized in ing would not be enough, he used hands-on training to em- their careers; they might not have the necessary breadth of bed antitrust compliance deep into the corporate psyche. experience to teach a legal literacy course. The way other companies would practice fire drills, Intel The legal literacy course really calls for a corporate gener- practiced antitrust compliance, conducting random audits alist, who most often can be found within an organization’s and collecting the kinds of documents the Department of in-house legal department. Such generalists have close ties to Justice or the Federal Trade Commission might demand in a management and a better understanding of the business is- subpoena. Mock depositions were conducted as part of the sues managers wrestle with every day. A lawyer with an MBA simulation to duplicate the experience of what it’s like to be or business management experience often can integrate law grilled by a hostile lawyer. Firsthand experience is a powerful into business seamlessly. One of the highest compliments I teacher, and this was reported to be among Intel’s most ef- ever received came from a student who said he didn’t think fective tools. Once managers have watched opposing counsel of me as a lawyer, but as a businessperson who happens to lob a grappling hook into their documents, they are much be a lawyer. more cautious about what they say and how they say it. If a school has trouble locating an academic with prac- Other companies use the same technique to practice their tical legal experience, administrators could design a course crisis management skills. Typically only the CEO and the that is team taught by an academic and a practitioner. Of general counsel have advance notice of the crisis manage- course, team teaching requires a high level of mutual respect ment fire drill. After all, dealing with the unexpected is the and partners who pull their respective weight. The disdainful whole point. During a monthly staff meeting, for example, a finance professor mentioned earlier need not apply to team staffer might bring the senior vice president a note about an teach such a course; neither should the stereotypical, arro- urgent customer matter or a sexual harassment complaint. gant lawyer. The team needs a collaborative mindset to suc- Will the manager’s response contain the liability, or will the cessfully prepare business students for the legal challenges situation escalate? Will the company’s written crisis manage- they will face in the working world. ment plan even be consulted? Live simulations can be extremely effective in the classroom, Signposts to Success ■ too, as Duke University has proved in its Corporate Education Business educators can help put students on the right side At the Erivan K. Haub School of Business, we invite Executive MBA, One-Year and 20-Month programs division. In a leadership course, student teams are assigned to of the law by teaching them to appreciate the central role successful executives to broadly expand their business ■ Executive Pharmaceutical Marketing MBA, disassemble and reassemble certain parts of real race cars. This law plays in business sustainability. If students develop legal Executive On-line Pharmaceutical Marketing MBA skills, and to apply this new knowledge to a number exercise tests decision making and leadership skills in a way no literacy, they gain a tool that they can use as a competitive ■ Executive Master’s in Food Marketing, abstract lecture or written case study ever can. It forces stu- business advantage when they’re executives. A well-designed of business verticals for immediate context and Executive MBA in Food Marketing dents into active learning and creates a memorable experience interdisciplinary course provides a legal road map for new with much more staying power than any lecture. graduates who are just learning how to navigate the road to application. This holistic view of executive education ■ Executive Post-M.S. Certificates in Food Marketing, Thus, simulations or hands-on exercises are excellent ways running a business. ■z is reflected in our curricula with support from the Arrupe Executive On-line Post-MBA Certificate of reinforcing the importance of legal literacy in the minds of business students. They expose deficiencies and help hone Hanna Hasl-Kelchner is a corporate lawyer whose career spans private, Center for Business Ethics at SJU, in our flexible, career- decision-making skills. They increase the likelihood of law government, and in-house practice. She is a former adjunct professor friendly weekend formats, and in our world-class faculty being an integral part of the knowledge base when real- at Duke University’s Fuqua School of Business, where she taught legal world pressures conspire to keep executives from seeing the leverage in full-time and executive MBA programs. She is currently as- and executive peer network. The result? Executives who gorilla in the room. sociate general counsel and national counsel for trademark enforcement are able to confidently apply new ideas and knowledge n Instructors. Ideally, business law instructors should have at Lorillard Tobacco Company. A frequent guest speaker on the subject one foot planted in the academic world and one planted in of preventive law, she is also the author of the 2006 book The Business to the immediate benefit of their organization. Erivan K. Haub School of Business the real business world—although the edge may go to those Guide to Legal Literacy: What Every Manager Should Know About the with broad hands-on business experience. Many law school Law. She writes a blog about the topic on www.legalliteracy.com. Spirit Intellect Purpose www.sju.edu/hsb 50 BizEd november/december 2006 Research

Staying Informed on manufacture, and stifle innovation,”

Patent Reform I ma ge s says Graham. “Under a less expensive system, many of these unused In research conducted for the National patents would be eliminated.” Academies of Science, two profes- Graham says that the next step in sors hope to provide information this research is to study how firms

that will aid in U.S. patent law Ed Honowitz/G e tty are using the international patent reform. Stuart Graham, assistant system to protect their innovations. professor of strategic management “Policy makers should have accurate at the Georgia Institute of Tech- information when making policy nology’s College of Management decisions,” Graham says. “Advo- in Atlanta, Georgia, and Dietmar cates on both sides of the issue need Harhoff, professor of management better information so that they can at the University of Munich, Ger- help the system.” many, closely compared U.S. and European patent systems. Their Redefining ‘Elite’ research has become especially important now that U.S. policy The emergence of the Internet has had a makers have passed the Patent profound impact on industries Reform Act in 2005, which calls for from marketing to shipping, but the U.S. to adopt features of the its influence is also being felt in European patent system. found that someone else invented it. unexpected places—including elite, In their paper, “Can Post-Grant To oppose a patent, petitioners ask research-oriented institutions of Reviews Improve Patent System for a post-grant review through the higher education. Technological Design?,” the researchers explain patent office, a process that costs advances have drastically simplified their “twin study” that compared much less than U.S. litigation— communication across long distances, U.S. patents, both litigated and about €15,000 (or US$19,000) on making it easy for faculty who are nonlitigated, to equivalent patents average. conducting research to work with granted in Europe. Not surprisingly, researchers colleagues across the country or In the U.S., Graham explains, found that Europe’s post-grant around the globe. patents are granted on a “first-to- review process would drastically Because collaboration is no lon- invent” basis. Even if someone reduce the cost of patent challenges ger dependent on co-location, elite holds a patent on an invention, that if adopted in the U.S. In addition, universities might be losing the patent can be challenged or revoked in their twin study of international edge when it comes to research, if another person can sister patents, Graham believes E. Han Kim, a profes- prove he or she invented and Harhoff found that sor of finance at the University of it first. Such challenges six percent of patents Michigan’s Ross School of Business often involve complex that weren’t challenged in Ann Arbor. Working with col- and expensive litigation— in the U.S. were chal- laborators Adair Morse of the Ross such lawsuits cost $4 mil- lenged in Europe. Many School and Luigi Zingales of the lion, on average. of those patents were University of Chicago, Kim studied In Europe, however, eventually deemed inval- the research productivity of eco- patents are granted on id and revoked. nomics and finance faculty at 25 top a “first-to-file” basis. “Under the current U.S. schools from 1970 to 2001. Under this system, the U.S. system, many pat- They found that, while individual first to obtain a patent for ents are being used sole- universities may be losing ground in an innovation owns that Stuart Graham ly to demand royalties the research race, academic research patent, even if it is later from companies, hold up as a whole has received a boost as a

52 BizEd november/december 2006 “There was a huge demonstration of physical and moral courage as a result of the attacks on 9/11, which inspired people in so many ways. It renewed my sense of the importance of studying courage in the workplace.”

—Monica Worline, Emory’s Goizueta Business School

result of technological facilitation. Courage at Work gan. For her dissertation, In the 1970s, according to Kim, Worline interviewed 650 faculty were more productive when Everyone loves a hero, the one people who worked in surrounded by other top-notch who displays tremendous the tech industry, asking faculty at an elite university. He courage in the face of each if they had ever seen notes that this effect weakened in incredible odds to accom- an instance of courage the 1980s and disappeared in the plish unbelievable feats, Monica Worline in their workplaces. Her 1990s, as technology changed the says Monica Worline, an dissertation took an unex- way professors could communicate. assistant professor of organization pected turn on September 11, 2001. “As a result,” Kim says, “there has and management at Emory Univer- “There was a huge demonstration been a substantial increase in co- sity’s Goizueta Business School in of physical and moral courage as a authorship between scholars at elite Atlanta, Georgia. But in the work- result of the attacks on 9/11, which and other universities.” place, she argues, actions don’t have inspired people in so many ways,” Another result of this trend, to be grand to be courageous. She says Worline. “It renewed my sense according to Kim, is that an increase asserts that employees who display of the importance of studying cour- in campus-to-campus co-authorship small acts of courage—from refusing age in the workplace.” reduces the importance of personal to commit an unethical act to admit- She and fellow doctoral student interaction with colleagues on site. ting to a mistake—can be among a Ryan Quinn became especially inter- Thus, he says, “one traditional company’s greatest assets. ested in United Flight 93, the only advantage of elite universities—to Worline’s study of courage in the one of four hijacked flights where act as a focal point attracting the workplace began with her doctoral passengers organized to fight their smartest faculty—is at risk.” research at the University of Michi- attackers. Worline and Quinn studied all information in the public domain regarding the crash, including media UPCOMING & ONGOING lies grow and create wealth across coverage, books, data from the flight n STEP UP FOR FAMILY BIZ generations. Recent STEP stud- recorder, the 9/11 Commission The Successful Transgenerational ies, for example, show that families Report, documents from the trial Entrepreneurship Practices (STEP) control between 60 percent and of Zacarias Moussaoui, and studies Project for Family Enterprising, 90 percent of business in nearly from the crash site. Their findings based at Babson College in Welles- every nation. The Latin America are outlined in the paper, “Capa- ley, Massachusetts, has launched STEP Project joins similar efforts bilities for Courage: The Story of the STEP Project in Latin America. in Europe, North America, and the United Airlines Flight 93.” The STEP Project is a research Pacific Rim. The authors found that several partnership that explores how fami- factors had to be in place to inspire n NEW JOURNAL ON CUBA the passengers to act. Passengers The Center for Cuban Studies at needed to be able to gather informa- Ohio Northern University has cre- tion, via cell phone calls, about their ated the Journal of Cuban Busi- situation; they needed to contact ness Studies. Designed to represent loved ones for support; many pas- wide-ranging views on Cuba and sengers drew on their religious faiths Cuban-American relations, the bian- for strength; they needed to gain nual electronic journal invites articles permission from other passengers to on economic, political, and social act; they needed to find weapons, issues in contemporary Cuba. The such as food carts and pots of boil- publication is currently accepting ing water; finally, and perhaps most submissions for its first issue, to be important, they needed time to published in June 2007. achieve the first five objectives. Worline admits that Flight 93

BizEd november/december 2006 53 Research

“We hope to show that engagement in the global economy isn’t just about extracting wealth,

but also about building wealth for future generations.” —David Levine, Berkeley’s Haas School of Business

represents an extreme example of in 1999. With this model, Levine be reassuring for global business, courage under duress. But she sees and Rothman predicted a country’s but Levine warns that business still lessons for business in its example. openness to trade based on its geo- must be aware of the impact of its She notes that many successful busi- graphic features, such as whether actions. “Our results were less scary nesses work to create “cultures of it has a coastline. They adapted than some critics had predicted; but courage” that provide employees the model to measure the relation- business still must work collectively with the time, information, and ship between a nation’s openness to avoid the worst excesses that can resources they need to take action to trade and three measures of afflict newly industrialized countries, when necessary, says Worline. These children’s health: mortality rates for from pollution to sweat shop labor,” workplaces allow employees to dis- infants and children under 5 years says Levine. “We hope to show that agree respectfully with management old; stunting, or low height for a engagement in the global economy when they feel it’s in the best inter- child’s weight; and wasting, or low isn’t just about extracting wealth, est of the company. Moreover, they weight for a child’s height. but also about building wealth for recognize acts of courage that their According to their study, an future generations.” employees display and share these increase of 15 percentage points in stories to inspire others. predicted trade, as a share of gross Can ‘Lean’ Work for “Managers need to recognize domestic product, corresponds to the Public Sector? and reward the people who are approximately four fewer infant truly acting on behalf of the deaths per 1,000 births. Levine What works for Toyota may also work for organization,” says Worline. “Such and Rothman also found that an firms in the public sector, accord- recognition would help build even increase of 20 percentage points in ing to two professors at the War- more courage into the entire fabric predicted trade as a share of GDP wick Business School in the United of the organization.” reduces stunting by approximately Kingdom. Research by Zoe Radnor 7 percent, while an increase of 20 and Paul Walley, senior lecturer and Global Trade and percentage points raises life expec- lecturer, respectively, in operations Children’s Health tancy by roughly six months. Their management at WBS, indicates that model also predicts that increased the lean manufacturing methods David Levine, professor at the University of trade often leads to higher immuni- employed by the Toyota Motor California at Berkeley’s Haas School zation rates for measles and larger Corporation can also be applied to of Business, and co-author Dov expenditures on public health as a public sector services to improve Rothman, assistant pro- share of GDP. employee morale, customer satisfac- fessor at Columbia Uni- Such positive findings tion, and process efficiency. The versity’s Mailman School were not a given, Levine project was funded by the Scottish of Public Health in New explains. While economic government. York, New York, aim to theories have shown that Radnor and Walley began their quantify trade’s effect on improved trade often research in the summer of 2005, children’s health in their leads to improved nutri- investigating eight case studies and study, “Does Trade tion, water quality, and three pilot studies of the implemen- Affect Child Health?” health care, history also tation of lean manufacturing philoso- Recently published in the David Levine shows that the effects phies in public sector organizations, Journal of Health Eco- of globalization aren’t including some in health and gov- nomics, the study found that global- always positive. “Most recently, ernment. They also surveyed a num- ization does indeed present a slight globalization led to the spread of ber of other organizations. By the benefit to children. HIV/AIDS,” says Levine. “We had time they had finished their research, To measure trade’s effects, Levine reasons to fear that the disruptions they had discovered that the use and Rothman used a model that that often accompany globalization of lean practices in health services was first developed by researchers could be costly.” organizations, for instance, generated Jeffrey Frankel and David Romer The findings of this study may several positive outcomes:

54 BizEd november/december 2006

College of Business Delivering

n They reduced the time required for adapting disabled peo- Innovation ple to housing from more than 200 days to 12 days. The Washington State n They reduced backlogs in lost University College of Business and found departments by 80 percent. n They increased the number of is developing globally patients being seen within 62 days competitive business of contact to around 80 percent, up from 40 percent. leaders with the skills to n They reduced the time patients deliver transformational spent in treatment by 48 percent. The researchers found similar innovations. results when lean practices were implemented in the government sector. For instance, the implementation of lean manufacturing techniques reduced the time legal departments took to prepare reports to six days, down from 77 days. Although their research shows very positive results for public service organizations, in terms of improved service, customer waiting times, processing times, productivity, and staff morale, Radnor and Walley are quick to point out that these changes were made over a long period of time. They aren’t to be seen as “quick fixes.” “Implementation cannot be Through the College’s forced,” says Walley. “The research nationally recognized Center for Entrepreneurial Studies, recommends a steady process of student entrepreneurs traveled implementation over a long period to Malawi, Africa, in 2006 with of time.” an improved treadle pump More important, says Radnor, to help local farmers achieve the lean manufacturing approach sustainable economic growth. must be customized to the private sector before it is applied to any organization. “Many organizations are not ready to adopt ‘lean’ immediately,” she says. “They don’t pos- Developing Leaders. sess the change management experi- Driving Innovation. ence or the right leadership style to make the transition right away.” To read the full report, visit www.cb.wsu.edu www.scotland.gov.uk/Publications/ [email protected] 2006/06/13162106/0. ■z COLLEGE OF BUSINESS

BizEd november/december 2006 55 Technology

“New learning technologies allow us to think differently about the ways we design and deliver learning programs to busy executives around the world.” —Raymond Smith, Duke University’s Fuqua School of Business

Putting Podcasts obtain RSS feeds; and review I ma g e s video of their own work and to Work presentations. n Richard Wilding, a pro- The iPod and other digital audio and video fessor of supply chain risk players are the latest innovation to management at the Cranfield

garner the attention of higher edu- Bek Shakirov/Getty School of Management in the cation. Eager to tap the technology’s United Kingdom, is providing potential, business schools are using a series of podcasts for profes- the players as conduits for content sionals. The podcasts, posted ranging from course lectures to at www.cranfield.ac.uk/som/ school news to expert commentary. lscm, feature interviews with One of the most comprehensive leading experts in the field experiments with this technology has and are designed to help busy been the iPod project at Duke Uni- professionals access essential versity in Durham, North Carolina. information quickly. Since 2004, faculty from multiple n The Stanford Graduate departments—including music, lan- School of Business in Cali- guage, writing, theater, engineering, fornia now has a podcasting and public policy—have used the channel, Social Innovation iPod for course content dissemina- Conversations, available tion, lecture podcasting, and study online at www.siconversations. support. Students were encouraged org. The channel offers free to use the device to gather support audio of conferences, lectures, materials for their courses, including digital players for business educa- and expert interviews that address recorded interviews, environmental tion by creating podcasts of univer- the world’s most pressing social and sounds, and biometric data. Duke’s sity content for the general commu- environmental issues. report on its use of the device, the nity. It joins other business schools n Richard McKenzie, an eco- “iPod First Year Experience Final that are taking different approaches nomics professor at the Merage Evaluation Report,” indicates that to integrating podcasts into courses School of Business at the University students highly valued the ability to and communications: of California in Irvine, has cre- download course materials to their n The Fuqua School recently ated 52 podcasts so far, including digital players. launched its public iTunes Web site, videotaped portions of his course Still, the university faced several called iTunes U, at www.fuqua. and audio selections from his new challenges and limitations in the duke.edu/itunes. The site textbook. He posts the project. The university had to start allows users to download Databit podcasts on his Web from scratch to develop training Fuqua speeches, inter- site at www.merage.uci. More than 44 percent support to help students and faculty views, and conference edu/~mckenzie/ of 1,078 organizations use the technology. Faculty also presentations to their module.htm. intend to increase the reported difficulty in finding materi- digital players. As business schools amount they spend on als in appropriate formats, and some n In September, HEC undertake these and commercial recruitment classrooms weren’t set up to cre- Paris in France issued cus- other initiatives, they Web sites over the next ate audio and video recordings of tomized video iPods to also are taking care not six months, according appropriate quality. its MBA students to allow to cross the line between to the Recruitment Since the university began its them to access campus educational enhance- Confidence Index (RCI) project, Duke’s Fuqua School of information, recorded ment and gimmick. The from the Cranfield School Business also has begun experi- lectures, tutorials, and key, many educators of Management. menting with the applicability of course revision materials; believe, is to ensure that

56 BizEd november/december 2006 “New learning technologies allow us to think differently about the ways we design and deliver learning programs to busy executives around the world.” —Raymond Smith, Duke University’s Fuqua School of Business

podcasts encourage and improve HEC plans to study how students executive education. Says Smith, interactions between the school and use their iPods. Researchers hope “New learning technologies allow its community. to provide more information about us to think differently about the At HEC, educators consider how such technology will be useful ways we design and deliver learning higher education’s use of digital on campus and in the workplace. programs to busy executives around players to be of value not only to Digital audio and video players the world.” the community, but also to research- provide business schools an oppor- To read Duke’s full report on ers exploring the trend, explains tunity to stretch their offerings its use of the iPod in 2004–2005, Valérie Gauthier, associate dean of in new directions, says Raymond visit cit.duke.edu/pdf/ipod_ the HEC MBA. As Duke has done, Smith, Fuqua’s associate dean for initiative_04_05.pdf.

Tools of the Trade ERPsim Tests Students’ Decision-making Skills Under Real-time Conditions

A new simulation system in enter- The software is the only one of generated by the ERPsim software. prise resource planning (ERP) was its kind, say its designers, because it Leger, Robert, and Babin plan recently tested for the first time at gives students the opportunity to try to publish a textbook on using the Canada’s HEC Montreal in Quebec. out an ERP system, which many large simulation system titled ERP Simula- The simulation software, ERPsim, companies use to manage their busi- tion Games with SAP R/3. The book was designed by Pierre-Majorique ness processes, under realistic market is scheduled to be available by Sep- Léger, Gilbert Babin, and Jacques conditions. Those conditions include tember 2007. Leger, the initiator of Robert, professors at HEC Montreal’s changing interest rates, prices of raw the ERPsim project, also has written Department of Information Technolo- materials, and harvest quality. Stu- a white paper on the process, “Using gies, and Robert Pellerin, a profes- dents’ decision-making and operations a Simulation Approach to Teach ERP sor from the Ecole Polytechnique in management skills were tested in all Concepts.” To contact the creators of Palaiseau, France. The software is areas except for data on orders and ERPsim, or read the full paper, visit compatible with SAP R/3, a soft- deliveries, which were automatically www.hec.ca/sap/ERPsim/docs.html. ware package in the mySAP Busi- ness Suite. To run the simulation, schools must be a part of the SAP University Alliance. Forty MBA students used ERPsim to participate in the final exam competition for their Enterprise IS (ERP) course, part of HEC’s MBA in Eng- lish. The daylong simulation pitted eight teams of five students against each other in managing a company that manufactures muesli cereal. The software presented students with a simulated economy where they had to manufacture up to six cereal vari- eties; purchase raw materials; bag and package the cereal; and handle inventory, sales, and distribution.

BizEd november/december 2006 57

MarkCalendarAd6.qxd 9/29/06 3:41 PM Page 1

“Knowledge exists to be imparted” Technology – Emerson “it is imperative that we address existing inequalities in broadband access.” AACSB INTERNATIONAL SEMINARS —Al Hammond, director for the Broadband Institute of California

Free Wi-Fi May Close and affordable to everyone? And Taking Tech to Market 2006-2007 Winter Schedule the Digital Divide how should municipal networks be Sharpen your skills, expand your knowledge, and support your institution’s goals by attending the built and operated to reach groups As business schools seek out more real- AACSB International professional development seminar that’s right for you. All of our Two new wide-ranging wireless networks that currently are the least served by world opportunities for their stu- popular seminars give you the opportunity to: —in areas as far-flung as Silicon Val- broadband? dents, educators are turning to sci- ley and the Brazilian Amazon rain- In October, in response to the ence laboratories, not just corpora- • Explore new methodologies through hands-on learning guided by qualified forest—promise to connect under- Silicon Valley project, the Broad- tions. Two management professors at management education experts in areas such as assessment, teaching, served populations to the latest band Institute of California and San Diego State University’s College accreditation, and faculty development. technology. In California’s Silicon Santa Clara University’s Center for of Business Administration in Califor- Valley, planners are working on a Science, Technology, and Society nia, for instance, have found that the • Collaborate with your peers by exchanging information, sharing ideas, identifying free wireless network that will reach hosted a public hearing on munici- environment of innovation can be challenges, and creating solutions. to 38 cities. In Brazil, Intel Corpo- pal broadband and its effects on a fertile ground where students can • Return to your school with a renewed enthusiasm backed by practical tools, ration plans to invest more than $1 the technologically underserved. learn where technological innovation valuable resources, and innovative solutions you can use immediately. billion over the next five years to The hearing was part of a project and commercial viability intersect. create a wireless, high-speed network to educate representatives from the Professors Alex DeNoble and for residents and provide computers region’s underserved groups so that Sanford Ehrlich recently created a Commit to excellence in your career and for your institution. View the entire calendar of AACSB to healthcare centers, public schools, they can make well-informed policy course aimed to help researchers at events, choose the seminar that meets your professional development goals, and register today at www.aacsb.edu and universities. recommendations about commis- Los Alamos National Labs (LANL) . The network in Silicon Valley is sioning their own networks. in New Mexico recognize the com- slated to launch in 2007. As one Experts testifying at the public mercial potential of new technolo- Advisory Council Seminar Department Chairs Seminar of the largest wireless networks in hearing included public and private gies. Developed at the request of the U.S., the network will reach partners responsible for building LANL, the course is a part of the March 1 – 2, 2007 March 15 – 16, 2007 approximately 2.4 million people. Silicon Valley’s wireless network. school’s Entrepreneurial Manage- Tampa, Florida, USA Tampa, Florida, USA In Brazil, Intel already has installed In addition, a panel of community ment Center (EMC). a network for the city of Parintins, members represented a wide spec- Launched during the 2005-2006 Applied Assessment Seminar Lessons for a town of 114,000 on an island in trum of ethnically diverse people academic year, the course required January 14 – 16, 2007 Aspiring Deans Seminar the Amazon River, and donated that statistically have the lowest rates student teams to work closely with Orlando, Florida, USA December 9 – 10, 2006 the computer equipment necessary of broadband access in the country, researchers at LANL and evaluate March 7 – 8, 2007 Charlotte, North Carolina, USA to access it. The network currently including low-income individuals, the the market potential for technologies Tempe, Arizona, USA serves a primary healthcare center, disabled, seniors, and rural residents. still in their early stages. On each Managing for High-Performing two public schools, a “If broadband is project, students also worked with Faculty Seminar Databit Assessment Seminar community center, and a critical economic mentors with experience in com- January 22 – 23, 2007 November 30 – December 1, 2006 Amazon University. Intel In a survey of engine for communities mercialization. During the course, Tampa, Florida, USA plans to extend wireless 4,000 mobile phone to provide jobs and a students evaluated nine technologies Monterrey, Mexico April 21 – 22, 2007 PC access to millions of users, conducted by way to close the digital from LANL in fields such as nano- March 5 – 6, 2007 Tampa, Florida, USA citizens in Latin America management consulting divide, it is imperative technology, solar cell technology, Tempe, Arizona, USA and train more than a firm A.T. Kearney and that we address existing optical lasers, cooling technologies million teachers to use Cambridge University’s inequalities in broadband for integrated circuits, and cyber- Strategic Management Seminar the technology in the Judge Business School, access,” says Al Ham- security. At the end of the course, February 1 – 2, 2007 classroom. more than 50 percent mond, director for the students delivered a presentation to Tampa, Florida, USA Although such efforts report that they own Broadband Institute LANL, including their assessment are clearly designed to phones with multimedia of California and a law of market potential, risks, barriers, bridge the digital divide, capabilities. Thirty-five professor at Santa Clara trends, and intended applications. some experts are still ask- percent of all surveyed University’s School of The course will be held again ing two important ques- noted poor content as the Law. “The public needs in the 2006-2007 academic year, Celebrating 90 years of excellence in management education tions: Will a free network reason they don’t access to ask these questions when LANL representatives plan truly make broadband multimedia services. before the networks are to present students with ten new Internet service accessible built, not later.” technologies. ■z

58 BizEd november/december 2006 Yo ur Turn by Rory McDonald

MBA at 24 educational backgrounds, general Desirable MBA candidates also business insights, and the direction have been siphoned off by online Management education has suffered so of a seasoned professor—not work and part-time programs, corporate much criticism in recent years that experience. training, and executive education. I’m no longer surprised to hear a I’m not the only one who These options look even more collective groan at social gather- believes younger students belong in attractive to individuals if their ings when I reveal my status as a the business school. Both Stanford companies will pay the tuition as an recent MBA. But I also receive a University’s dean, Robert Joss, and incentive for having them stay. few appraising glances, because Harvard Business School’s former Traditional business schools I’m something of a rarity—one of dean, Kim Clark, have offered ratio- have responded by reaching out to a relatively small group of students nales for why the early career admit prospective students earlier. Some accepted into MBA programs with program makes sense. As they have schools are adopting innovative poli- little or no work experience. I pointed out, the MBA is supposed cies such as deferrals of admission, firmly believe younger students can to be a transformative experience, fee waivers, and feedback sessions for bring energy and diversity to the designed for people in the early denied applicants. As a result, early graduate business classroom, while stages of their development, where- admits have spiked, and class com- helping keep the quality of the stu- as other business programs exist for positions have evolved. I believe this dent body extremely high. more seasoned professionals. changing b-school classroom offers Critics believe that young, inex- a better dialogue, enhanced perienced students cannot benefit younger students networking—and a higher from an MBA education. The argu- level of learning. ment goes that twenty-somethings So far, initiatives aimed at who lack extensive professional can bring energy bringing younger students experiences and industry contacts into the MBA program have cannot contribute to classroom dis- and diversity to the met with tentative accep- cussions or help classmates establish tance. Professors I have personal career networks. As an graduate business spoken to say that younger early career admit myself, I believe students bring a welcome these critics are missing the point. classroom. Rory McDonald element of diversity to the I entered Stanford University’s classroom. Recruiters have Graduate School of Business direct- Yet, over time, the window for been cautiously receptive to this new ly after finishing an undergraduate seeking that transformative experi- group, since early career students degree in engineering at the Uni- ence has narrowed, which has had tend to be more flexible about job versity of South Florida. Admitted- an adverse effect on applications. It location and position. ly, I was somewhat intimidated by is now widely believed that top pro- Evidence suggests that the early the polished former consultants and grams will not even consider can- admit program works well for bankers who seemed to be speak- didates who lack the requisite four younger MBAs. Professors George ing a different language. Even so, I or five years of work experience. Dreher and Katherine Ryan of quickly found my feet. The rising opportunity cost has led Indiana University’s Kelley School I began working with two col- some desirable candidates to recon- of Business recently conducted an leagues and a professor to examine sider pursuing their degrees—and empirical study of students who had the business applications of a new some candidates, particularly those no prior work experience before technology. We founded a digital who want to start a family, never they attained their MBAs. They dis- signal processing (DSP) company, apply. In an interview, Clark flatly covered that these younger employ- which recently won first prize in stated that the old MBA model did ees were more satisfied with their the Stanford Entrepreneur’s Chal- not work for women and might careers, received a greater number lenge Competition. My fellow have discouraged some of them of promotions, and took home students and I were guided by our from pursuing the degree. more cash than some of their more

60 BizEd november/december 2006 experienced peers. They can afford to be more patient about advancing within an organization, and they can take the time to grow into leadership roles. A look at the current CEOs of Fortune 100 companies also indicates that the right individuals can do spectacularly well by draw- ing on the lessons of education received at a young age. Among this select group—which includes Jeffrey Immelt of GE, Kevin Rol- lins of Dell, and Paul Otellini of Intel—25 had less than two years of work experience upon beginning their MBA degrees. Fifteen arrived in an MBA program directly from an undergraduate program. Perhaps these managers did learn a thing or two when, by today’s standards, they were too young to be considering graduate degrees in business. It’s clear that business schools are changing the MBA admissions game. And younger MBA students might just change the parameters of business education. I am extremely grateful that Stanford took a chance on me. I believe all my fellow early admits would agree that we have had a transformative experience. We are proud of our own past accomplishments and admire our more experienced colleagues, but we know that we, too, have an excellent chance of making remarkable future contributions. It is my hope that other early career admits will be similarly hum- bled and inspired by their MBA experience. ■z

Rory McDonald was an early career admit into the MBA program at the Stanford University Graduate School of Business in California. He is now a Ph.D. student at the school.

BizEd november/december 2006 61 Bookshelf

Risk management is key for anyone, from countries outside of North America the CEO considering an acquisition In July 1994, 14 firefighters perished and Europe...where leaders must to the individual contemplating buy- fighting a blaze on Colorado’s also address daunting obstacles such ing a house. But what might be even Storm King Mountain, partially as poverty or environmental degra- more important than risk manage- because of poor decisions made by dation.” Kanter is only one of 27 ment, according an ill-prepared leader. “Excessive contributors to The Leader of the to David Apgar, is optimism, untested assumptions, Future 2, a compilation of essays risk assessment. In unheeded warnings, poor intel- edited by Frances Hesselbein and Risk Intelligence, ligence, failure to clarify authority: Marshall Goldsmith. A sequel to a he theorizes that at Storm King, nearly all the great ten-year-old volume of leadership a company that enemies of good decision making essays, this book gathers an impres- properly assesses were present in abundance,” says sive lineup of high-profile experts: the risk to a par- Wharton professor Michael Useem Stephen Covey, Jeffrey Pfeffer, ticular enterprise in The Go Point. Useem’s absorb- Charles Handy, Peter Senge, wins a distinct competitive advan- ing account of the Storm King Ronald Heifetz, Noel Tichy, Jim tage. Competitors that overestimate disaster is only one of the stories he Kouzes, Barry Posner, and more. the potential risks will decide not tells of real-life decision making at Their expertise spans everything to try to break into the market. its most critical and consequential. from understanding diversity to “Competitors that underestimate After interviewing hundreds of lead- managing the knowledge worker. those risks will be unprepared for ers, Useem distills their collective The result is a broad look at some the occasional losses they will suffer wisdom into a decision-making of the most pressing questions of and will have to adjust or abandon template for crucial moments. These leadership today—and tomorrow. their projects,” he writes. Apgar include “using small steps to make (Jossey-Bass, $27.95) further believes that some risks are hard decisions, building a network nonrandom and, therefore, learn- of counselors and oracles for testing If you could redesign and able. Executives who can identify ideas, keeping options rebrand your desktop learnable risks—and learn about open until they must stapler, what would it them quickly—will have a better be closed.” The book look like and how shot at making critical decisions. gets the reader’s heart would you market it? They might end up managing racing—and mind That’s one of the exer- those risks with the same tools working. (Crown cises Lynn Altman offers brought to bear by any other Business, $25) in Brand It Yourself, a manager, but their ability to size practical and easy-to-read book that up a situation accurately will keep bubbles with ideas. Altman and her them in the forefront of their I ma g es partner have developed Brandmaker markets. (Harvard Business School Express, a ten-day process through Press, $29.95) which they create branding cam-

P ic t ures/Ge tt y paigns for new products, and she

Rosabeth Moss Kanter knows exactly L ife generously shares every detail of what tomorrow’s that process here. She advocates a leader will look like. short turnaround because the tight “Leaders of the future Friends and relatives hugging at a memorial timeframe helps spark creativity and will be progressively as they mourn nine of their local firefighters. fuel adrenaline; she also focuses more cosmopolitan, These nine were among 14 firefighters killed in on one project, and one singular Gaylon Wampler/Time Wampler/Time Gaylon innovative, diverse, a freak blowup when the wind changed during a attribute of the product, at a time. and values-oriented,” manageable fire and trapped them within it on Presenting unused ideas from real she writes. “They will Storm King Mountain, Colorado. campaigns—as well as an ongo- increasingly come from ing deconstruction of that stapler

62 BizEd november/december 2006 redesign—Altman walks the reader Andy Cohen thinks it takes magic to contrived, but the prem- through the process of brainstorm- make a business successful— ise works well and the ing ideas and translating them into and he means that literally. In Follow story-telling is fun. For instance, one high-impact visual ads. By the end the Other Hand, Cohen presents a of Merlin’s lessons is that you have of the book, you’ll be looking at fable of a struggling young execu- to make the audience part of the act. every item in your office and won- tive whose family-owned business Houdini “pre-engaged” his viewers dering how you might brand it is re-energized by the insights of by having them see how long they anew. (Portfolio, $21.95) Merlin the magician. Sounds a little could hold their breath, then he had himself locked in an airtight contain- er for longer than any of his watch- The 21st century might be the era of sustainable business, and two books offer insights into ers could afford not to breathe. His what companies can expect as they green their operations. Either book can give CEOs or busi- audience was connected to the act ness professors an excellent starting point for considering sustainable practices. before Houdini even began to per- form. How can a business manage In The Triple Bottom Line, Andrew Also persuasive are Daniel C. Esty the same trick? Merlin describes the W. Savitz and co-author Karl Weber and Andrew Winston in Green to time M&M’s allowed consumers examine the forces that are caus- Gold, as they take an to vote on the colors they’d most ing more companies to measure unflinching look at like to see on the chocolate candies. their success according to business, how companies have Other ideas appear with a wave of environmental, and social impact. dealt with environ- Cohen’s wand. Turns out a business Companies that find the “sustain- mental issues—both book can be magic, after all. (St. able sweet spot”—the area where successfully and Martin’s Press, $22.95) business interests and stakeholder unsuccessfully. Com- interests overlap—will produce panies riding the Quick Look new products, new management “Green Wave” are methods, and a more sustainable often bowing to two Finding the Best Business School for business model. In today’s intercon- sources of pressure, the authors You offers a scholarly view of a sub- nected, global, and full wired world, note: “First, the limits of the natu- ject geared to a commercial audi- every business will have to start ral world could constrain business ence—individuals who might want considering sustainable issues, the operations, realign markets, and to pursue an MBA. Authors Everette authors say. “You can’t pretend you perhaps even threaten the planet’s E. Dennis and Sharon P. Smith take are operating in well-being. Second, companies face an analytical approach to putting a vacuum,” they a growing spectrum of stakehold- the MBA in context, discussing the write. “Instead ers who are concerned about the history of the MBA, recent changes you’re in a environment.” While folding envi- in degree delivery, accreditation crowded neigh- ronmental imperatives into company standards, media rankings, and how borhood where practices can save money and stoke the needs of a changing workplace everyone knows innovation, such moves are not easy, give rise to a resilient and lifelong your business, they warn: “Like excellence in any learner. In short, the book is a has an opinion form, you have to work for it.” They comprehensive look at how today’s about it, and not only recite success stories, they business degrees have evolved to fit feels that he or she has the right to also list common mistakes compa- into today’s business environment. express that opinion and try hard to nies make as they attempt to turn a Degree seekers who want to know change your behavior. Call this peri- green attitude into gold. The result “Which b-school is right for me?” od the Age of Accountability.” They is a forthright but hopeful book won’t find a quick answer here, but make a compelling case. (Jossey- about how to win the green revolu- they will learn a great deal about the Bass, $24.95) tion. (Yale University Press, $25) MBA and how it might fit into their lives. (Praeger Publishers, $39.85) ■z

BizEd november/december 2006 63 ICAM ad_squares 10/2/06 5:28 PM Page 1

Spotlight

holds less than 15 percent,” says Videla. “Still, many business lead- S anfeliu ers realize that if China becomes as

Josep big a player in the global market as many expect, they must establish a presence there to win a share of a very large market.” IESE operates its China study module through a relationship with the China European International Business School in Shanghai. The school’s objective mirrors that of many business schools, both inside and outside China, that are integrating study of the Chinese economy Students in IESE’s Global into international curricula, says Executive MBA visit Videla. To stay on top of global Volkswagen’s Shanghai development, he says, faculty must facility. make regular visits to regions that promise to be increasingly important to the global economy, such EMBAs Go to China as China, India, Russia, Brazil, and To understand rapidly evolving economies, students and faculty must see Africa. Schools also must create and the changes firsthand. continually update case studies on businesses in these economies. Thirty of IESE’s Global Executive MBA what its daily life is like.” Citizens in China’s rural areas students recently completed a two- Videla especially wanted his stu- are still struggling, Videla empha- International Conference and week module in Shanghai, which dents to visit Volkswagen, which has sizes. But in China’s metropolitan included a tour of Volkswagen’s been in China since 1985, a time centers, new highways, building Annual Meeting manufacturing plant in that region. when China was developments, Like many global executives, these just starting to open “Its important that students see for and investments April 22–24, 2007 executives possessed a great deal of its economy to themselves how fast China and other are rapidly international work experience before the global market. changing the Tampa, Florida, USA enrolling in the class, but few had Students learned emerging economies are changing.” landscape. Glob- direct experience with the Chinese how the company is —Pedro Videla, IESE al investment in market, says Pedro Videla, an asso- adapting to China’s China is already ciate professor of economics who transition from a labor-intensive 40 percent over its gross domestic accompanied them to Shanghai. economy to a capital-based, techno- product, and its economy is grow- Videla wanted them not only to logically driven economy. In addition, ing at a pace of 30 percent per year. SHAPE THE FUTURE OF MANAGEMENT EDUCATION tour businesses, but also visit local Volkswagen, once one of the only car China’s business student popula- markets, interact with vendors, and manufacturers in the country, now tion is steadily growing to meet its Join 1,400 business school leaders from more than 44 countries in network with expatriate executives faces mounting competition from increasing demand for skilled exec- Tampa, Florida, USA — AACSB’s world headquarters city. Network now living in China. “It’s impor- newer arrivals. utives. Many of today’s MBAs from tant that students see for themselves “Eight to ten years ago, Volkswa- outside China also may end up with your peers, explore global issues, trends, and solutions how fast China and other emerging gen held more than a 30 percent living and working in China, says surrounding management education, and be part of AACSB’s economies are changing,” Videla share of the automobile market. Videla. It’s up to business schools, 90th anniversary celebration. says. “They must see not only how Now, as competition for China’s he adds, to let them know what to China’s businesses work, but also expanding middle class grows, it expect once they get there. ■z Register today! For details, visit: www.aacsb.edu.

72 BizEd november/december 2006