The Biz of Coding

Yale Dean on Weaknesses in MBA Education

by Ujwal Tickoo on August 17th, 2007

US News University Rankings are out again with no major surprises. The status quo is maintained. Whenever these rankings come out I keep wondering whether they are forward looking in terms of the future needs of education in society? Especially in terms of graduate management education I feel that its time that some change is initiated. I recently stumbled upon this 2 year old interview in NYT with the then outgoing Yale Dean for MBA program Jeffrey Garten "Are B-Schools Failing the World?" (reg required).

Some interesting and even radical ideas that he expresses (1) the role of businesses in globalization (where governments have failed) (2) requiring B-School professors to have work-experience (3) Mergers between B-Schools (beyond simple exchange programs). Refreshing ideas actually in challenging the system and the status quo — things that B-Schools don't necessarily discuss. Its more about "playing the game" that I have normally seen and heard.

On the Role of Business Leaders in Globalization

Business leaders…be the champions of globalization and…in fact fill in where governments…left a huge vacuum in terms of the rules of the world economy…Today, that seems like a very fanciful notion. Post 9/11 and post Enron, the role of business leaders has been enormously diminished.

What do you teach about corporate governance when the rules and the expectations of society are changing so quickly? What do you teach about the global competitive landscape when countries like China and India are likely to fundamentally reorganize the way production and trade are conducted?

The question is, who is in the best position to build a framework for global trade and investment? Every major country is more preoccupied internally, and less focused on global management, than was the case a decade ago. Huge changes are taking place, whether it's the rise of China or the decline of Europe. International finance has become more complex. There is a huge range of labor, environmental and social issues. If companies basically say, "this is not my responsibility," something will fill the vacuum. We'll have another wave of really major government regulation or a degree of chaos, which would not help corporate America at all.

If the idea isnt merely using wage cost arbitrage as the centerpiece of Globalization strategy then it becomes interesting. The key idea is using best talent anywhere in the world. In that case the problem with putting the onus on Business Leaders to drive the globalization agenda is that few people down the hierarchy buy the idea. B-schools and even school level education agencies could help by making global economic thinking a part of their curriculum. The idea of attracting and promoting the best talent anywhere in the world is still limited to HR newspaper promos and Hiring ads. The reality is that truly doing this will lift service/product quality, and financial value of each firm that actually executes the globalization agenda.

On the requirement that B-School Professors have work experience

The current model of business school education needs to change dramatically…What business schools need to do is add some criteria for promotion. One of them should be some real-world experience, in the same way that a doctor teaching at a medical school would have had to see patients.

This is an interesting idea. Blending theory and practice in business teaching would truly enhance the value that a B-School can offer students & society.

Merger of American and Non-American B-Schools

Business schools need to rethink the way they're preparing students to operate in a global economy. There's a lot of lip service to this and no end to courses that have the word "international" in front of the name. But the fact is that most business schools are quite insular. I think there's a strong case for mergers between American schools and schools abroad. Not episodic exchange programs. Not an occasional exchange of professors. But a global school that matches a global market. A school in which the students can go back and forth between the United States and China and where the professors are rotated. No business school is even close to approaching that degree of global focus.

The merger idea is pretty radical, even though interesting. On their websites and in brochures some B-Schools subtly tend to position themselves as almost sole gaurdians in teaching the art & science of Business Leadership. This story repeated over several decades becomes a truth. A hypnotized media/employement market then helps grads of those schools get above market wages and jobs which does not necessarily reflect competitive talent in the market. It would be a major volte-face if mergers became a reality because till now only school "X" could actually teach leadership! Mergers would cause Brand Dilution even Erosion. B-School mergers will not happen. B-School Brand egos wont be able to absorb that shock.

POSTED IN: Leadership/Life