Volume 06 _ Issue 03 2012

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INSIDE THIS ISSUE

www.efmd.org Volume 06 | Issue 03 2012

Cox steers a

new course forbusiness schoolsSue Cox discusses her new roleas an EFMD vice-president

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Corporate Social Responsibility

Sponsored byIE Business School, ES

EntrepreneurshipSponsored byE.M. Lyon, FR

Family Business

Sponsored byThe Family Business Network International, CH

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Supply Chain Management

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Finance and Banking

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Public Sector Innovations

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Responsible Leadership

Sponsored byUniversity of San Diego School of Business Administration, USA

Euro-Mediterranean Managerial Practices and Issues

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African Business Cases

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Indian Management Issues and Opportunities

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Inclusive Business ModelsSponsorship opportunity

MENA Business Cases

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Best of the Best Award

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EFMD would like to thank all of the sponsors for theirsupport of the Case Writing Competition in 2012

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1EFMD Global Focus | Volume 06 | Issue 03 2012

Volume 06 | Issue 03 2012

In focus

We are always pleased to hear

your thoughts on Global Focus,

and ideas on what you would

like to see in future issues.

Please address comments and

ideas to Matthew Wood at EFMD:

[email protected]

The structure of business schools and the extent to which they can both embraceand pass on issues surrounding sustainability are key themes of this months issue.

Sue Cox, dean of Lancaster University Management School in Britain, interviewedon page 10, comments:

We cant just sit here. We need to adapt to new technology. We need to look at newmarkets, all in the context of a complex world and tough economic conditions. Wehave to be open to sustainability issues, ethical behaviour issues and general

good practice. And we have to make a difference. If business schools dont makea difference why do we exist?

Richard Lambert (page 16) points out, in a similar vein, that the considerablesoul-searching now taking place in many business schools about their role incorporate excess and economic downturn is driven in part by student pressureto have environmental, ethical and corporate responsibility issues embeddedin the curriculum.

And a report on the latest EFMD-EABIS Global Deans Survey of steps undertakenby business schools in their effort to drive the sustainability agenda forward(page 30) notes that 82% of deans participating in the survey believe that theseissues have now moved from the fringe to the mainstream of business schooldevelopment.

Finally, two further articles on page 42 and page 50 offer more specific analysisof the subject.

In the first, Dr Katrin Muff, Dean and Programme Director for the DBA andDiploma in Sustainable Business at Business School Lausanne, Switzerland,explains the background to the 50+20 initiative of the World Business SchoolCouncil of Sustainable Business and how her own school is responding to it.

And in the second, CB Bhattacharya describes how the European Schoolof Management and Technology (ESMT) in Berlin has embedded tenets ofsustainability and responsible leadership into various aspects of teaching,research, thought leadership and, slowly but surely, lifestyle.

What impact on real-world actions this as yet largely rhetorical responsewill have must remain to be seen. But as this issue of Global Focusmakesclear, business schools and involved bodies such as EFMD are thinking veryseriously about changes that will have to be made.

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2

www.efmd.org/globalf ocus

Global Focus

The EFMD Business Magazine

Executive Editor

Matthew [email protected]

Advis ory Boa rd

Eric Cornuel, Howard Thomas, John Peters

Consultant Editor

George Bickerstaffebicker staff e@bti nter net.co m

Contributing Editors

Nassim Belbaly, C B Bhattacharya, Justin Bridge,Andrew Cr isp, Ju lie D avies, Fi ona Ga rdner,

Philippe Haspeslagh, Ulrich Hommel, Didier Jourdan,Richard Lambert, Martin Lockett, Katrin Muff, Mollie

Painter-Morland, Jrgen Thorsell, Jocelyne Wang

Design & Art Direction

Jeben s De sign

www.jebens des ign.c o.uk

Photographs & IllustrationsJebens Desi gn L td / EFMD

unless otherwise stated

Editorial & Advertising

Matthew Wood

[email protected]: +32 2 629 0810

EFMD aisbl

Rue Gachard 88 Box 31050 Brussels, Belgium

www.efmd .org /glo balfo cus

EFMD

Volume 06 | Issue 03 2012

Contents

4 Talking Shop EFMD appoints new senior management

IDP to visit Turkey, Singapore and Germany

EFMD MENA Conference 2012, Beirut Empowering the Next Generation of Leaders

Professor Valery Katkalo elected Chairmanof EPAS Accreditation Board

10 Cox steers a new course for business schools Sue Cox, dean of Lancaster University Management School,

discusses her new role as an EFMD vice-president withGeorge Bickerstaffe

16 What does business want from business schools? Richard Lambert suggests four key issues

22 Rebranding as fuel for growthVlerick Leuven Gent Management School, now Vlerick Business

School, has a new name and a new look to match. Dean PhilippeHaspeslagh explains how the decision to rebrand forms an integralpart of the schools development strategy

26 The age of uncertainty The latest EFMD/CarringtonCrisp Tomorrows MBA survey

shows an MBA marketplace that is more diverse, confusedand uncertain than ever. Andrew Crisp reveals the details

30 Gradualism prevails and perception outbids substanceUlrich Hommel, Mollie Painter-Morland and Jocelyne Wangsummarise the results of the Third EFMD/EABIS Global

Deans Survey on Sustainability and the Future of ManagementEducation. They are not totally impressed

34 Executive development: evolutionary revolutionEvolution, revolution? Whatever is happening, Jrgen Thorsell,Justin Bridge and Fiona Gardner describe big changes in theway we are developing executives

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3EFMD Global Focus | Volume 06 | Issue 03 2012Contents

26

50

34 Evolution, revolution?Whatever is happening,Jrgen Thorsell, Justin

Bridge and Fiona Gardnerdescribe big changes inthe way we are developingexecutives page 34

38 50+20 offers a clear visionCan business schools present a new vision of managementeducation for the world? Katrin Muff believes that through the50+20 initiative they can

42 Inciting exciting insights Julie Davies looks back on five years of the International Deans

Programme, a joint initiative between the Association of Business

Schools and EFMD

46 Being different: Ashridges new MBA Martin Lockett looks at the experience of redesigning Ashridges

MBA programmes

50 Teaching sustainability to tomorrows leaders How can we make managers globally responsible leaders

attuned to the needs of sustainability? CB Bhattacharya explainshow one school is trying

54 Renewing Mediterranean roots Didier Jourdan and Nassim Belbaly explain how a new

Mediterranean Schools of Management Consortium willstrengthen the Mediterranean region

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4www.efmd.org/gl obalfocu s

News and events in brief from the business world

Talking shop

EFMD appoints new seniormanagement teamFollowing the sad passing away of Jim Herbolich, EFMDhas made several changes to its senior managementteam. Ms. Helke Carvalho and Professor Julio Urgel havebeen appointed as Deputy Director Generals, ProfessorMichael Osbaldeston becomes the new Director of QualityServices and Professor Christian Delporte becomes the

new Director of Business School Services.Both Helke and Julio have been instrumental in thedevelopment of EFMD over the past ten years and I amdelighted to appoint them as deputies, said ProfessorEric Cornuel, CEO and Director General of EFMD. StartingSeptember 1st, Helke will be Deputy Director General,Development and External Relations, overseeing EFMDsinternational reach, governance, projects, marketing andcommunications. Julio will be Deputy Director General,Operations and Quality, overseeing network activities,research initiatives, accreditations and other qualityservices.

I am also delighted that Michael and Christian, bothlong-standing members of EFMD and former Deans haveagreed to take over the roles of Quality Services Director andBusiness Schools Services Director. I have great confidence inall four members of the team and know that they will work forthe very best interests of EFMD in the future.

Support in developing a business planfor the Japanese or Korean marketsWould you like to improve your understanding of the businesspractices and cultures of these countries? Do you want toimprove your business communication skills in Japanese andKorean?

Since 1979, the European Commissions Executive TrainingProgramme (ETP) has helped over 800 European companies

and 1,000 European executives to succeed in the Japaneseand South Korean markets by providing intensive languageand business training.

Following the successful selection of candidates for the 2012cycle of ETP, which will start in November, applications arenow open for the 2013 cycle of this prestigious businesssupport and executive training programme.

The ETP enables EU companies and their executives todevelop their business plan and build knowledge of Japanese/ Korean business practices, culture and languages well astheir networks in order to succeed in these Asian markets.

The selected participants, who will be granted a scholarship,will undertake intensive business and language training atinternationally recognised universities in Japan / Korea and aninternship in a local company.

Why participate in the ETP?

On average, participant companies related turnoverincreasestwo fold within ten years of completing ETP

More than 65% of ETP alumni proceed to become topexecutives within their companies

Executives from 15 of the top 20 European companies havetaken part in ETP

The training is given by prestigious and internationallyrecognised universities

Financial support

Funding for the entire training course in Japan or Korea A scholarship of 12,200 per month for Japan or 12,000per month for Korea

Further information

The deadline for applications for the next ETP cycle2013-2014 is 31st May 2013. Enrol now on www.euetp.eu

Clockwisefrom top left:

Helke Carvalho,

Julio Urgel,

Michael Osbaldeston,

Christian Delporte

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5EFMD Global Focus | Volume 06 | Issue 03 2012Talking shop

[Th e IDP is] an opp ortu nity to compare the priorities and agendasof leaders of business schools in the 21st centuryProfessor Per Holten-Andersen, President, Copenhagen Business School, Denmark

EFMD in partnership with the Association of BusinessSchools (ABS) is launching the 6th edition of theInternational Deans' Programme (IDP).

The programme enables a group of up to 20 internationaldeans to visit business schools in three different countries

and gain an international overview of strategy, marketingand benchmarking with debate about issues such asgovernance, funding models, reputation/branding, facultydevelopment, the challenges and opportunities facingmanagement education, and particularly the role of the dean.

The programme also enables participants to discuss, shareand develop their own network with other participants anddeans from schools visited.

The three compulsory modules for the 2013 IDP are:

Turkey: 29-30 January:Ko University School of Business, Istanbul (immediately

prior to EFMDs Deans and Directors General Conference)

Singapore: 26-28 March:Nanyang Business School; NUS Business School;Lee Kong Chian School of Business, SingaporeManagement University

Germany: 17-18 September:University of Mannheim Business School;EBS University for Business and Law, Wiesbaden

Each module begins with dinner at 7:30pm and finishesafter the main session at 4.00pm the following day.

Benefits

Gain unique insights into the multiple roles of deansof business and management schools in a cohort ofaround 20 participants

Visit a diverse range of business and management schools,take time out to network with your counterparts,

re-energise and reflect on strategies for your ownschool, and create new strategic alliances

Engage in debates about issues under Chatham Houserules

Format

Round-table debates, learning sets, interactive activitiesco-designed with the participants and host institutionswith optional psychometric questionnaires and 360-degreefeedback.

Alumni

80 participants to date from Belgium, Brazil, Canada, Chile,China, Denmark, Estonia, Finland, France, Germany, Ireland,Korea, Latvia, Lebanon, Lithuania, New Zealand, Norway,Portugal, South Africa, Spain, Switzerland, The Netherlands,Turkey, UK, Ukraine, USA.

Fees

Early bird rate by 21 December 2012: 14,250 members,14,750 non-members.

Normal fee: 14,500 members, 15,000 non-members.

Do not miss this unique opportunity to explore the challengesand opportunities of being a dean, learn from the experienceof other institutions and networks while exchanging ideaswith a small and open group of deans. Please note that thisprogramme is aimed at recently appointed directors general/deans of the whole business school only. Places are limited,so register as soon as possible through the online form anddo not hesitate to contact us should you have any question.

Contacts

Julie Davies: [email protected] +44 (0)7884 002470

Virginie Heredia-Rosa: [email protected]

International Deans Programme (IDP6) 2013 to visitTurkey, Singapore and Germany

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7EFMD Global Focus | Volume 06 | Issue 03 2012Talking shop

St Petersburg University GSOM is the first school in Russia to beawarded EPAS accreditation for a maximum period of five yearsso I have seen f irsthand the great value that it can bring to a s choolProfessor Valery S Katkalo, Vice-Rector, St Petersburg University and Dean, Graduate School of Management

Professor Valery Katkalo electedChairman of EPAS AccreditationBoardProfessor Valery S Katkalo, Vice-Rector, St PetersburgUniversity and Dean, Graduate School of Management, has

been elected Chairman of the EPAS Accreditation Board.The board is composed of highly respected individuals withsignificant experience of management education. It evaluatesthe Peer Review Reports on programmes applying for EPASAccreditation and, based on their recommendations, makesthe final decision to confer accreditation upon those businessand management programmes that have demonstrated highquality at an international level. The Chair of the AccreditationBoard oversees and runs EPAS accreditation meetings threetimes year.

Commenting on the appointment, Dean Katkalo said: I amdelighted and honoured to have been appointed as the Chair

of the EPAS Accreditation Board. St Petersburg UniversityGSOM is the first school in Russia to be awarded EPASaccreditation (Bachelor of Management programme) fora maximum period of five years so I have seen firsthandthe great value that it can bring to a school.

For more information on EPAS visit www.efmd.org/epas.

Global events with EFMDEFMD has a host of events over the next few monthsfrom seminars to conferences, from Russia to China.

November

The Olayan School of Business at theAmerican University of Beirut will host the 2012 EFMDConference in the MENA Region with the theme Empoweringthe Next Generation of Leaders. Following Beirut, wehead back to Brussels for an Advisory Seminar on RiskManagement in Business Schools on the 21st. On Novemberthe 29th, Lomonosov Moscow State University BusinessSchool will host a Quality Services Information Sessionin Moscow, that will introduce Deans Across Frontiersprogramme (DAF), EPAS & EQUIS.

November closes with the 2012 CEIBS-EFMD conference

on Innovative Business in China and Europe in Beijing onthe 29th and 30th.

December

Kemmy Business School at the Universityof Limerick hosts the last big meeting of 2012: the EFMDConference on Masters Programmes (3rd to 5th of December)that will ask the question, Masters Programmes do theydeliver? The final event of 2012 is an Advisory Seminaron Designing and Implementing an InternationalisationStrategy on the 12th of December, in Brussels.

January

The first major event of the 2013 will bethe EFMD 2013 Deans & Directors General Conference,hosted by Ko University School of Business in Istanbul,Turkey, on the 31st January to the 1st of February. Thefirst module of the EFMD/ABS 2013 International Deans'Programme (IDP) will also take place at Ko starting onthe 29th of January.

More information on all these events is available on the

EFMD website www.efmd.org/events

DECEMBER

2012

JANUARY

2013

NOVEMBER

2012

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Winners of the EFMDExcellence in Practice Awards 2012

EFMD is pleased toannounce the namesof the winners of theEFMD Excellence inPractice Awards 2012.

The awards recognise outstandingLearning and Development partnershipsbased on operational excellence,excellence in programme managementand above all business impact.

The winning cases will be featuredextensively across the EFMD networkand published in a special supplementof Global Focus and by Emerald GroupPublishing.

To learn more about the awardor read the winning entriesvisit: www.efmd.org/eip

CATEGORY:

Organisational Development

WINNER

Business Unit Strategy at Lonza

Linking Executive Education

and Strategy Development

Lonza AG & University of St. Gallen

(Executive School of Management,

Technology & Law)

By

Uwe Boehlke

(Lonza)

Philipp Guthof

(University of St Gallen)

CATEGORY:

Executive Development

WINNER

Merck Global Human Health

Executive Development Programme

Merck & Co., Inc. & The Wharton School

(University of Pennsylvania)

By

Nancy Singer(Merck)

Judy Kelley

(Merck)

Cara Stolarczyk

(Merck)

Sandhya Karpe

(The Wharton School)

A.Janeen Pesiridis

(The Wharton School)

HIGHLY COMMENDED

BSH Leadership Development Program

BSH Bosch und Siemens Hausgerte GmbH

& Axialent Europe Ltd

Meeting Strategic Challenges through Partnership

Nexus (Tyne & Wear Passenger Transport

Executive) & Newcastle Business School

SCAN TO READ THEFULL CASE STUDY


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9EFMD Global Focus | Volume 06 | Issue 03 2012Winners of the EFM D Excelle nce in Practice Awards 2012


CATEGORY:

Talent Development

WINNER

Trusted, Innovative, Bold Building

Global Mindsets for a Global Future

BAE Systems Inc & Sad Business School,

University of Oxford

By

Andrea Lewis(BAE Systems Inc)

Tim Sellick

(for Sad Business School)

HIGHLY COMMENDED

JuMP Creating a partnership for Engagement,

Innovation, Integration & Internationalisation

Airbus S.A.S & AirBusiness Academy

& The Open University Business School

Energy of Knowledge Programme:

Developing Future Executives

DTEK & DTEK Academy

& Kyiv-Mohyla Business S chool (KMBS)

CATEGORY:

Professional Development

WINNER

Senior Siemens Production System

(SPS) Expert Program

Siemens AG & Siemens Learning Campus

By

Walter Liebisch

(Siemens)Ralf-Ulrich Gruhs

(Siemens)

HIGHLY COMMENDED

Client Leadership Experience: A Learning

Initiative to Enhance Cross-Business Culture

and Business Impact at UBS

UBS AG & UBS Business University

CATEGORY:

Others

WINNER

Goldman Sachs 10,000

Small Businesses in Yorkshire

& Humberside

Goldman Sachs (Foundation)

& Leeds University Business School

ByDeepak Jayaraman

(Goldman Sachs)

Sarah Hackett

(Goldman Sachs)

Rob Whieldon

(Leeds University Business School)

HIGHLY COMMENDEDThe Novartis Entrepreneurial Leadership

Program Real World Learning to drive

business and social impact

Novartis International AG

& Novartis Corporate Learning



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Sue Cox (right), Dean of LancasterUniversity Management School (LUMS)in Britain, has been appointed EFMDvice-president for academic affairs.

The first woman to fill the role, she joinsThomas Sattelberger, the vice-president for theEFMDs corporate activities and a former boardmember for human resources at DeutscheTelekom in Germany.

The official appointment lauds Professor Coxshigh professional qualities, outstandingachievements [and] commitment to EFMD. Alltrue, of course, but, unofficially, one cannot helpthinking that the appointment really came aboutbecause she is such a nice normal person, capableof switching without missing a beat from theintricacies of managing a large business schoolto the equally byzantine ins-and-outs of coachingthe England football squad. (She is a highly

knowledgeable football fan and a long-timesupporter of British Premier League team StokeCity, a mid-table outfit admired for its directplaying style.)

With Sattelberger continuing to overlook thecorporate network, Professor Coxs role leadingEFMDs academic network will involve therepresentation of business schools within EFMDand supporting the challenges involved in runninga business school.

Sue Cox, Dean of Lancaster UniversityManagement School, discusses her new role as anEFMD vice-president with George Bickerstaffe

Cox steers anew course forbusiness schools

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11EFMD Global Focus | Volume 06 | Issue 03 2012Cox steers a new course for business schools: Sue Cox interview by George Bickerstaffe

The European business schoolsmodel may seem relativelyhomogeneous but it alsocontains considerable variety

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Interestingly, though, her experiencegives her a foot in both the corporateand academic worlds. Although shehas been dean at LUMS for 11 yearsand before that was Director ofLoughborough Business School, also

in Britain, her training was in organicchemistry and she worked for a timeat Boots, a leading pharmaceuticaland retail group. Her main professionalinterest was in planning and managinghazardous sites and she still advisesthe British government in this area.

But she has always been active in themanagement education field as well,combining heading LUMS with twoterms as a member of the EFMDAwarding Body, chairing numerousEQUIS panels and working incollaboration with AACSB, theAmerican accreditation body. Sheis also a former chair of BritainsAssociation of Business Schools(ABS), a representative body forBritish business schools.

What this has taught her, she says,is that business schools can be verydifferent from each other and needa representation and network that

recognises that.Being chair of ABS, even though itwas just concerned with Britain,made me aware of the diversity ofbusiness schools, she says. Here atLancaster we are a quite substantialschool with a big research base and weare a very large part of the university. Socompared with other schools we have alot of size and considerable autonomy.

One of the things she believes EFMDhas to recognise and respond to better

is this diversity. For example, she saysthat though the European businessschools model may seem relativelyhomogeneous it also containsconsiderable variety.

And, of course, the growth of businessschools in China, India and other partsof Asia has accelerated and complicatedthis diversity. This, she thinks, hasconsiderable implications for EFMD.

Differing ideologies, cultures, even

religions, all affect the way business

education happens, she says. Thatmakes it very complex and difficult tobe a global accrediting body.

One of the biggest challenges nowfacing EFMD, she suggests, is acting

as a global provider of services tovery varied and geographically distantbusiness schools from a singleepicentre.

Responding to this, she says, is likely tolead to some major changes in the wayEFMD works in relation to its businessschool members. And it is this changethat Professor Cox, in her new position,can be expected to, if not drive, thencertainly enthusiastically cheer onfrom the sidelines in her best football

fan style.For example, she suggests that infuture we [EFMD] will probably needto establish new and different sorts ofpresences around the world to providegreater proximity and to betterrepresent the needs of the schools.

Like the overseas offices manybusiness schools have establishedin recent years?

Yes, they will be an office in a way

but they will be more than that, shesays. They will be a focus for eventsand things that we can do.

For example, we want to do more shortone-off events for, say, half a day thatpeople can drop into. But obviouslyno-one is going to get on a plane tocome from China to Brussels for oneof those.

"This is going to be a big change and itis a big change that is driven by a seriesof imperatives. Its going to be exciting.

These responses are also a way ofpotentially helping business schools toface up to what Professor Cox believesis one of the main challenges for themin the future the growth of goodbusiness schools outside Europe andAmerica. Increasingly this means thatmore overseas students can stay intheir own country to study rather thantravel to Europe or America.

On the other hand, she points out that

there will always be some foreign

11Cox's experience gives her a foot in both thecorporate and academic worlds she has

been dean at LUMS for 11 years and before

that was Director of Loughborough BusinessSchool. Her training was in organic chemistry

and she worked for a time at Boots, a leadingpharmaceutical and retail group

PHOTOGRAPHY: COURTESY OF LANCASTER UNIVERSITY MANAGEMENT SCHOOL (LUMS)

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students who can afford a cultural andeducational experience overseas. Thechallenge here for business schoolsin host countries, says Professor Cox,will be to link that experience withemployability and employment for these

students back in their home countries.This is something that we at LUMS areworking on and it may be something forEFMD to think about as well, she says.What we are considering is takingcareers office people to establishnetworks with the corporate worldin these students home countries.EFMD can help here, building betternetworks and connections with thecorporate world in these countries.

Indeed, she regards this as part ofanother dimension of her vice-presidential role.

It is a mistake to think of ourselves as aset of Deans working in isolation, shesays. In fact we are all embedded ina community that both needs and cancontribute to management education.We need to be more connected at alllevels.

While she does not quite agree with thesuggestions that all these changes will

mean EFMD should lose the E fromits title, another area she believesneeds addressing is the relative lackof penetration by EFMD into America(though its profile in Canada isrelatively high).

If you look at our accredited schoolsthen we have done well to establishourselves on the ground in countrieslike China and India, she says. Butin America we are not so establishedand we have relatively few accredited

schools there. Id like schools inAmerica to recognise the value of theEQUIS approach.

Despite her increasingly high profileand success at Lancaster (the school istriple accredited by EFMD, AACSB andAMBA and has expanded significantlyduring her leadership), she professesno great ambitions to do anything else(that niceness again).

This job allows me to do the things Im

interested in, she says simply.

She is, though, no Pollyanna. ProfessorCox warns that the managementeducation market (and the MBA marketespecially) is currently very toughthough she argues that LUMS, withannual revenue around 45m and 290

faculty and staff is big enough andexperienced enough to survive andprosper.

She does add, though, that another bigchallenge facing business schools issimply how to manage the myriadactivities from executive educationand career offices to pure research anddoctoral studies that larger schoolscurrently have to be involved in.

The challenge is to balance this whole

portfolio and continue to do well in all ofit, she says

For the moment she is not totallyconvinced (as some others in the fieldare) that business schools are facingsuch an existential threat that they needto embrace massive radical changes totheir structure and purpose. She is notone for throwing all the pieces up in theair and seeing where they land.

In any case, she says, my own feeling

is that if you did throw all the pieces upin the air, then when they came downthings would not look that different.The best researchers, the bestteachers want to be together. Thatshuman nature. People naturally formcommunities. Of course you want toavoid functional silos but this comingtogether can boost ideas.

However, she acknowledges that insome ways we [business schools] doneed to change. We cant just sit here.

We need to adapt to new technology.We need to look at new markets, allin the context of a complex world andtough economic conditions. We haveto be open to sustainability issues,ethical behaviour issues and generalgood practice. And we have to makea difference.

If business schools dont make adifference why do we exist?

Cox steers a new course for business schools: Sue Cox interview by George Bickerstaffe

Differing ideologies,cultures, even religions,

all affect the waybusiness educationhappens. That makesit very complex anddifficult to be a globalaccrediting body

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International Deans

Programme 2013>Gain unique insights intothe multiple roles of deansof business and managementschools in a cohort of around

20 participants

>Visit a diverse range ofbusiness and managementschools, take time out tonetwork with yourcounterparts, re-energise

and reflect on strategies foryour own school, and createnew strategic alliances

>Engage in debates aboutissues under ChathamHouse rules

Format:

Round-table debates, learning sets, interactive activities co-designedwith the participants and host institutions with optional psychometricquestionnaires and 360-degree feedback.

Turkey: 29-30 JanuaryKo University School of Business, Istanbul (immediatelyprior to EFMDs Deans and Directors General Conference)

Singapore: 26-28 MarchNanyang Business School; NUS Business School; Lee KongChian School of Business, Singapore Management University

Germany: 17-18 SeptemberUniversity of Mannheim Business School; EBS Universityfor Business and Law80

Previous participants include 80 deans

from: Belgium, Brazil, Canada, Chile,

China, Denmark, Estonia, Finland, France,

Germany, Ireland, Korea, Latvia, Lebanon,

Lithuania, New Zealand, Norway, Portugal,

South Africa, Spain, Switzerland, The

Netherlands, Turkey, UK, Ukraine, USA

>29 30 January

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The best part of my IDPcohort has been meeting a

global subset of the worldsleaders of business schools

from all around the world,thereby having the opportunityto compare the priorities andagendas of leaders of business

schools in the 21st century.This is a valuable experiencethat even in our e-connectedworld is not yet possiblewithout this very personalexchange of views and insights.Professor Per Holten-Andersen,President, Copenhagen Business School, Denmark

Fees:

Early bird rate by 21 December 2012:4,250 members, 4,750 non-members.

Normal fee:4,500 members,5,000 non-members.

Contact:

Julie Davies:[email protected] / Mobile +44 (0)7884 002470

Virginie Heredia-Rosa:[email protected]

Registration:

www.efmd.org/business-schools/idp

>17 18 September

>26 28 March

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What does

businesswant frombusinessschools?

What does business wantfrom business schools?The answer is: exactly

what it has always wanted greatgraduates and relevant ideas.

But the qualities required of thosegraduates and the nature of the ideasthat are of most interest to businessare both changing radically. Theworld is undergoing a profoundtransformation in economic, politicaland social terms on a scale and ata pace never seen before. As a result,tomorrows business leaders are goingto need a new set of skills to handlethese challenges.

And the question that readers of Global

Focushave to answer is: are businessschools as they are currently structured,teaching programmes as they arecurrently designed best equippedto deliver them?

Of course, there is no single answerto the question. But my guess is thatquite a lot of schools still have muchto do to keep up with the game inthis fast-changing world. This articleconcentrates on just four of thequalities that businesses will require

of their future leaders in this time oftransformation. (There are, of course,many more.)

Sir Richard Lambertsuggests four key issues

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Embracing diversity

The first, and in some ways the mostimportant, is the ability to managediversity. Consider this. During the1990s, just 12 countries in the worldgenerated growth in incomes per

head at a pace that was twice the OECDaverage. In the first decade of thiscentury, that number jumped to 83.Nearly half of the two billion people nowgetting by on between $10 and $100a day the global middle class livein what the OECD calls convergingeconomies. (That is, economies thatare catching up with the living standardsof the West from a low base viaturbo-charged growth.)

This has profound implications for

global business. So do the massivedemographic changes that are alreadyunder way around the world.

By 2050, other things being equal, therewill be almost as many peoplein Nigeria as in America;Ethiopia will have twice asmany people as Britain orGermany. But the workingpopulation of Japan andRussia could fall by roughlyone-third over the same period.

The opportunities that all this throwsup for business will not be evenlydispersed. Successful leaders of thefuture will need judgment, imaginationand the capacity to work in unfamiliarsurroundings if they are to make themost of these extraordinary shifts inglobal power balances.

In addition, our understanding ofglobalisation is becoming much moresubtle and nuanced than was the casein an America-centric world. We aremoving away from the simplistic notionthat the world is flat towards a much

more complex reality.That is what todays business graduatesneed to understand. And to do thatthey will have to learn to live with andwelcome diversity in all its forms. It isgoing to take a different kind of mindset,and a different type of education, tosurvive and prosper in such a diverseand cosmopolitan environment.

What does busines s want f rom bus iness s chools? by Sir Richard Lambert

Our understanding of globalisation is

becoming much more subtle and nuancedthan was the case in an America-centric world

83During the 1990s, just 12 countries

in the world generated growth inincomes per head at a pace that was

twice the OECD average. In the firstdecade of this century, that number

jumped to 83

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Dealing with uncertainty

The second great quality required oftomorrows business leaders is thecapacity to deal with uncertainty. This

did not seem so necessary in the 15years leading up to the latest financialcrash the period economists describeas the great moderation, wheninflation stayed low, asset prices roseand economies grew steadily just abouteverywhere. The Cold War was over,the Washington consensus shapedthe world economy and the businessoutlook often appeared as assured asit was predictable.

Nor was uncertainty high on the agenda

of most business schools. They werebusy promoting the notion of rationaleconomic man and the certainty ofmodern finance theory and economicmodelling. Then things changed.

The great moderation is now well andtruly over. The probability is that wewill see much more jagged economiccycles in the next two decades than wesaw in the last. And todays economic

uncertainties are on a scale not seensince the second world war. Considerthe euro crisis. The chances of adisorderly breakdown are small butnot negligible. But the consequencesof such an event would be catastrophic.The euro and the dollar together arethe essential lubricants of global tradeand finance, accounting for nearlytwo-thirds of trading in foreignexchange markets worldwide. Thatis one reason why the result of a euro

collapse would be all but unimaginable.The other is the potential impact onthe global banking system at a timewhen the balance sheets of the worldsbig banks are so closely intertwined.To take one example, Britains banksare not directly very vulnerable to thebanking problems of Greece. But theyare heavily exposed to those in Franceand Germany, which are. All thisuncertainty helps to explain whycompanies in the developed world

are building up vast cash mountainsrather than investing their money innew products and services.

Since the credit crunch started in 2007,American non-financial companieshave increased the share of their assetsheld in cash by 50% to around $1.7trillion. Apple alone has almost $100billion in the bank enough to buyDell three times over. Understandable,perhaps, but is it wise? Would boldervisionaries see todays uncertainty as

an opportunity, rather than a risk?Think of the great businesses thathave been created at the bottom ofpast economic cycles. Can businessschools help business to thinkthrough this challenge?

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19EFMD Global Focus | Volume 06 | Issue 03 2012What does busines s want f rom bus iness s chools? by Sir Richard Lambert

50%Since the credit crunch startedin 2007, American non-financial

companies have increased the share

of their assets held in cash by 50%to around $1.7 trillion. Apple alone

has almost $100 billion in the bank enough to buy Dell three times over

The role of government

The third important quality that willbe required of tomorrows businessleaders is a proper understanding ofthe role and workings of government.

Again, this seemed irrelevant during theperiod of the great moderation. TheReagan/Thatcher reforms had sweptaway corporatism and the heavy handof the state and left market forces todo their work. As time passed, itcame to seem at least in theadvanced economies that almostany government interference in theworkings of the market was likely todo damage. Now we had once againto learn the old lesson that marketssometimes fail and that when theydo governments have to step in. TheBritish government had to save thecountrys banking system. TheAmerican government and you haveto pinch yourselves when you say this had to nationalise General Motors,albeit briefly.

Across the whole of the developedworld, governments are working on

major programmes of new legislationcovering the financial system. Energyis another sector coming in for a waveof re-regulation. There are others.

Is this a temporary blip in the workingsof free markets? Are we heading backto business as usual, when marketsrule and governments only have a bitpart to play? Or is the shock of the pastfew years going to change the way theglobal economy is managed in somefundamental way? Around the world,we see the growing reach of state-directed capitalism, most obviouslyin China, but also visible in Russia,Malaysia, Venezuela and elsewhere.According to the Economistmagazine,state-backed companies today accountfor four- fifths of Chinas stock marketand two-thirds of Russias.

The worlds ten biggest oil and gasfirms, measured by reserves, areall state-owned. And as this formof enterprise advances we see acorresponding loss of confidence inthe Anglo-American economic model.

The Occupy Wall Street camps, in theirdifferent manifestations around

the world, are a small andlargely incoherent protest

movement. But I thinkthey are a symptom ofa broader malaise: asense that somethingis not quite right in aworld where theaverage income of the

richest 10% of thepopulation in advanced

economies is now about

nine times that of thepoorest 10%. Thespread is muchsteeper than that in countries suchas America andBritain. And evenin traditionallyegalitarian societies,

such as Germany,Denmark and Sweden,

the income gap isexpanding from 5 to 1

in the 1980s to 6 to 1 today.

The worlds ten biggest oil and gas firms,measured by reserves, are all state-owned.

And as this form of enterprise advanceswe see a corresponding loss of confidencein the Anglo-American economic model

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hostile takeover. And of coursehe was right. Gradually, and thenwith increasing momentum,shareholder value becamethe driving force of businessmanagement, and businessschools played an importantpart in pushing the process

on. It brought real benefits,by driving out cost andinefficiencies and focusingon comparative advantage.

Consumers were big winners,as globalisation multiplied thechoice and slashed the cost of

a whole range ofproducts and services.But there werecosts, too. Long-terminvestment became

harder to justify asshareholders engagementbecame increasingly shortterm. Managers were heavilyincentivised to maximise thereturns on equity rather than onoverall capital employed one of

the prime explanations for the bankingcrash. Companies became detachedfrom their communities, as they shiftedtheir activities to wherever in the worldthe job could be efficiently completed at

the lowest price.If the return on equity stacked up,actions were justified which wouldnot have made sense in Druckersworld. And people paid a price. Weall paid a lot less for our trousers,for our television sets and for ourtravel services. But the price wasrising job insecurity and growingincome inequality across the wholeof the developed world. And after theeconomic shock of the past four years,

we again have to ask the question:what is business actually for?

And what is the sensible responseon the part of business to the largelyhostile way in which the public debateis now being framed? In Rethinking theMBA, three Harvard Business Schoolprofessors argue that one thinglacking in many MBA programmes isan understanding of how to balancefinancial and non-financial objectiveswhile simultaneously juggling the

demands of diverse constituenciessuch as shareholders, employees,

customers, regulators and societyat large. That is surely correct.

Public concern about high levels ofexecutive compensation, accountingirregularities, and flawed decisionmaking have prompted considerablesoul searching at business schools,driven in part by student pressure

to have environmental, ethical andcorporate responsibility issuesembedded in the curriculum.

It is good that business schoolgraduates are rising to this bigchallenge. But I think academicsthemselves should be doing moreto shape the debate, through theirresearch and their writings.

Todays business leaders are in adifficult place. They are being criticised

for their lack of diversity and for theircompensation practices. They rankclose to the bottom of the opinion pollswhen it comes to questions of trustand reputation. After everything thathas happened in the past few years,shareholder value no longer seemsa reliable model on which to builda companys future. And they do notquite know how to handle the politicsof a much more uncertain world.

They need guidance. They need big

new ideas and fresh thinking abouttheir role and responsibilities. Andthat, above everything else, is whatbusiness schools should be seekingto develop and promulgate today.

This article is an edited version of the

presentation by Richard Lambert to the

EFMD Meeting for Deans and Directors

General, Nottingham Business School,

February 2012

ABOUT THE AUTHOR

Sir Richard Lambert is Chancellor of WarwickUniversity in Britain. He was editor of the Financ ialTimesfrom 1991 to 2001, served on the Bank OfEngland Monetary Policy Committee 2003 to 2006and was Director of the Confederation of BritishIndustry 2006 to 2011. He also chaired theLamber t

Review on the relationship between higher educationand business.

The purpose of business

And so finally to the fourthquality, which is a developedunderstanding of the role,responsibilities and purposesof business itself.

Here again there is at least a chancethat we are approaching a secularand not just a cyclical change in theway this subject is best approached one that business schools, both in

their roles as teachers and thoughtleaders, ought to be debating andleading. Business management inthe decades after the second worldwar was shaped by what I think of asthe Peter Drucker or Dave Packardapproach.

The purpose of business was to meetthe needs of customers. Firms hadto make enough profits to undertakethe research and marketing and

to retain and develop the talentedemployees that were required to doa good job for their customers butno more than that. They did not existfor their own sake nor just to maximisetheir profits. Instead, they were ameans to a broader end and theyhad a real interest in the wellbeingof the different communities thatwere touched by their activities.

Drucker himself forecast that thisbenign model would eventually collapse

under the weight of two developments:the rise of globalisation and of the

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ecchthe case for learning

Taking time out to participate in an ecch case method workshop

can dramatically enhance your skills and enjoyment as a case

teacher and author, or as a student learning with cases.

Open programme events

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Vlerick Leuven Gent Management School is now Vlerick BusinessSchool. It started the 2012 academic year with a new name and anew look to match. A bold logo and a thought-provoking advertisingcampaign are a radical break from the past. But the decision to rebranddid not come out of the blue.

Dean Philippe Haspeslaghexplains how it forms an integral part of theschools development strategy to meet todays challenges

REBRANDINGAS FUEL FORGROWTH

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23

EFMD Global Focus | Volume 06 | Issue 03 2012Rebranding as fuel for growth by Phillippe Haspeslagh

First, what are these challenges and howdoes a school deal with them? In fact, thechallenges faced by business schoolsmirror those faced by the business world.

Five consecutive years of crisis have madecompanies, business schools and individuals thinkabout what it is they do and why. In the currenteconomic climate any investment has to pay off.

As far as executive education is concerned, wecan see companies demanding greater integrationof learning with the development andimplementation of their business strategy.

They are looking for partners in strategy executionand leadership development. Coaching, mentoringand action learning therefore become increasingly

important. Why work only on fictitious businesscases when you could learn just as much, if notmore, examining real-life issues such as a changeproject or setting up a new venture?

I believe our entrepreneurial boot camps are greatexamples of how people learn while tackling realstrategic problems. Incidentally, in-companyprojects have been part of our programmes formore than 40 years now.

As the needs of the business have changed, sotoo have those of the individual.

The traditional hierarchical career path is beingreplaced by one of serial specialisation. Peopleare increasingly realising they must ensure theyare employable throughout their career and aretaking their personal development into their ownhands. This means new requirements for openprogrammes, such as financing schemes andtiming of the courses.

And as for degree students I believe that in todaysglobal market, with rankings readily available onthe internet, reputation is a key factor. Most degreestudents make a once-in-a-lifetime decision.

Their choice depends on the programme features,how international the faculty and fellowstudents are, traineeship and employmentopportunities, expected graduate startingsalary and companies recruiting at the school.

Other challenges result from advances intechnology. E-learning has come of age. Forbusiness schools like ours, the key to successis the smart integration of technology. Weincreasingly opt for blended learning programmes,combining e-learning and classroom teachingor action learning.

Partnering with specialists, weve developedbusiness simulations and serious games. Acase in point is the Belgacom leadership game(that has been developed with the BelgacomGroup) that seamlessly integrates with dailywork. The impact of these tools is huge, buttheir development costs are significant.

There is another reason besides technology forincreasing operating costs. Over the years, thenumber of key business issues has mushroomed.A full-range business school therefore needs

critical mass and sufficient scale.Most business issues today require amultidisciplinary approach. This is where we are atan advantage, having established a track record incross-disciplinary research. We have been able togrow strongly because we have explored severalnew fields. Also, today intimate sector knowledgeis imperative. This is why we have reshaped ourgo-to-market approach to leverage our expertisein specific sectors such as financial services, retailand consumer goods, health care and energy.

Why work only on fictitiousbusiness cases when you couldlearn just as much, if not more,examining real-life issues

such as a change project orsetting up a new venture?

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Obviously, there is not only the demandside of the market to reckon with.Attracting and retaining talented facultyand staff remains a key concern. Here,business schools are in competition

with one another as well as withuniversities and companies.

We need multi-faceted talentedindividuals who know how to combineinspired teaching with high-impactbusiness-relevant research. Wetherefore invest in our faculty by helpingthem develop and grow to becomeauthorities in their field. Eventually theytake on entrepreneurial responsibility inthe school, and may become partnersin our structure, which has emulated

professional service firms.

Running a business school today islike running a business in a highlycompetitive and fragmented market. Wecompete not only with other businessschools but also with other educationproviders such as consultants, coachesor trainers. We are operating in adiverse ecosystem in which we haveto carve out our own niche and formpartnerships. Successful businessschools are no longer brokers ofprofessors and programmes. Theyare learning consultants or architects.

I believe our schools DNA is such that itis well armed to respond to challenges.Then why the rebranding? Becausereputation and international visibility areparamount in a trust-based business.

Even our former students do not realisehow the school has changed and thequality and range of activities wenow offer. Our ambition is to becomerecognised as a clear leader in the heartof Europe. Therefore, we must createstopping power, hence the rebrandingand a new Brussels campus.

We are one of those nationalchampions, with a strong establishedregional presence, that is buildingan international reputation. Withour company-specific programmesand research, we are already activein nearly 40 countries. While the

rankings have helped acceleratethe internationalisation of our degree

programmes, they have little impact onour open programmes. Other nationalchampions face the same challenge.

That is why we will be exploringcollaboration in areas where we haveunique expertise, to bring together ourrespective talent pools and participants.Our strategic innovation programmewith Cambridge Judge Business Schoolin Britain, combining modules in Leuvenand Cambridge, and our long-standingMBA FSI (financial services industry)are excellent examples.

In addition, we are at a crossroads.In the 60 years of the schools history,the biggest change to its structure,

programmes and identity dates back to1998. This concept has served for wellover a decade. Turnover has grownfrom 12m to more than 130m. Thequestion is whats next?

We do not pursue growth for growthssake; we seek to answer theincreasingly complex and exactingdemands of our clients. We firstbegan refocusing our strategyand restructuringour organisation

back in 2008.Rebranding is thefinal phase of thatstrategic processand the start ofa new chapter.

In the rebrandingexercise weengaged brandspecialists tobenchmarkthe school by

analysing howit was perceivedby its stakeholdersand, moreimportantly,to identify whatreally differentiates it.

International, openness, vitality andpragmatism are our major branddrivers.

To be relevant, we must be international

and show it. We are on the right trackbut there is room for improvement.

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25EFMD Global Focus | Volume 06 | Issue 03 2012Rebranding as fuel for growth by Phillippe Haspeslagh

Our openness manifests itself in manyways. We are open to collaborationand easy to collaborate with. We are

open-minded and as typical Europeansexpose our students to multiple truths,informed by our programmes in Russiaand China.

As for vitality, anyone visiting the schoolwill notice that there is a buzz about thecampuses. We want to express thisspecial energy and sense of belongingin our new identity.

And finally, what also sets us apartis our pragmatism. Our approach toteaching and research is very muchcentred on practical solutions andnot just on theory. Our programmeshave relevance in the real world,as they must: 95% of our income isderived from satisfying students andcompanies.

For the Vlerick alumni association,theschools rebranding has been anopportunity to reassess its own brandand align it to that of the school. Infuture, we will both use the samelogo and house style and will have anintegrated website. This should furtherenhance the international strategy ofboth the school and the association.No alumni without a school and noschool without alumni is the slogan.

We have now better aligned ourvisual identity and communicationswith what we are and what we aspireto be. Moreover, we have taken therebranding as an opportunity tobenchmark and review ourprogrammes and to draw moreattention to the relevance of our

approach to the future demandson managers.

We have modified our degreeprogrammes to meet the requirementsof companies and students even moreclosely, with greater emphasis onpersonal development, action learningand elective courses. Our openprogrammes will become moremodular and international.

And for our historic Flemish market,were offering new programmes infamily owned business andmanagement buy-ins. These changes

are part of an ongoing improvementeffort. We are building on our traditionsand strengths and we will continue toreinforce the unique things we have tooffer.

One thing, however, remains the sameregardless of the rebranding. Ourname change was only logical, givenour international campuses and jointventures. But let there be no mistake:despite our new name, we are andremain the business school of the

universities of Ghent and Leuven. It isnot what is in the name that counts, it isthe collaboration. And we will continueto work together with the same zeal.

Effectiveness, ROI and reputation aremore important than ever. Businessschools have to step up their gameto remain relevant. We all feel thepressure to be more business orientedand client focused. The economiccontext has encouraged us to focusour strategy and to be even closer toour clients than we have been before.

These changes arepart of an ongoingimprovement effort.We are building onour traditions and

strengths and we willcontinue to reinforcethe unique things

we have to offer

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THE AGE OFUNCERTAINTYThe latest EFMD/CarringtonCrisp Tomorrows MBAsurveyshows an MBA marketplace that is more diverse, confusedand uncertain than ever.Andrew Crispreveals the details

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ooking at my Twitter feeds one day earlierthis year, I got a sense of the current MBAmarketplace. In three tweets there wascoverage of the winning entry in the GBSN

MBA challenge, coverage of sexism atHarvard and the Dean at Stanford indicating thatbusiness schools need to embrace change andcan change.

The MBA marketplace has never been morediverse, confused or uncertain, depending on yourpoint of view. For three years, CarringtonCrisp andEFMD have undertaken a study called TomorrowsMBA, looking at the views of more than 2,000prospective students around the world to helpbusiness schools better understand how themarket is changing.

So is it possible to pick trends for tomorrowsMBA? Perhaps.

A desire for lifestyle learning not lifelong.Competition from different providers in differentplaces. New ways of using technology to reachpotential students. Greater focus on alumniin recruitment, using stories to differentiateproviders. Supplying enhanced career services,including support for business start-ups andentrepreneurs. Revising the curriculum andfinding a place for sustainability.

The age of uncertainty by Andrew Crisp

48%The survey revealed

that the full-time MBAis still the preference

of 48% of prospectivestudents though 34%

prefer part-time study

and 18% choosedistance learning

91kOver five years, those

taking the GMAT agedunder 24 grew from

58,688 in 2006-07to 91,028 in 2010-11,

the 24-30 age groupnumbers have grownover the same period

(from 114,961 to124,878) but are

down from a peakof 139,144 in 2008-09

The data suggest a growinginterest in lifestyle learning, thatis, programmes that fit arounda candidates present lifestyleand, equally, allow him or her

to obtain the lifestyle that theywant in the future

Among respondents to the Tomorrows MBAsurveythe full-time MBA is still the preference of 48% ofprospective students though 34% prefer part-timestudy and 18% choose distance learning. Blendedlearning is also the most popular approach tostudying for 27% while just 18% choose traditionalacademic terms and office hours.

The Graduate Management Admissions Council(GMAC), guardian of the GMAT, has also reportedthat just over two-thirds (67%) of two-year full-timeMBA programmes experienced a decline inapplication volume in 2011 compared with 2010,continuing a trend that began in 2009.

Over five years, those taking the GMAT aged under24 grew from 58,688 in 2006-07 to 91,028 in 2010-11.Among the 24-30 age group numbers have alsogrown over the same period (from 114,961 to124,878) but are down from a peak of 139,144 in2008-09. The number of test takers over 31 yearsold has also declined during the same period.

The data suggest a growing interest in lifestylelearning, that is, programmes that fit around acandidates present lifestyle and, equally, allow

him or her to obtain the lifestyle that they wantin the future.

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In practice this means that rather thangive up a job and take on a full-timeMBA perhaps in another part of theworld for two years, students arelooking for MBAs that offer someflexibility. They want programmes thatcan be taken over an extended period,

perhaps with internationalcomponents in different parts ofthe world for short spells, and usetechnology in place of the traditionalclassroom experience.

A further analysis of the GMAT test datashows that in 2010-11 only 65% of thetests taken were intended for MBAapplication. In the Tomorrows MBAreport, 28% would definitely considera specialist masters instead of anMBA and 23% might consider this

alternative. Just over half (58%) wantan MBA programme with a specialism,preferably finance or marketing.

GMAC also found that specialisedmasters programmes reportedincreases in application volume overthe period 2010 to 2011. Master ofFinance programmes led the trend withan 83% increase, followed by Masterin Management at 69% and Masterof Accounting programmes at 51%.

Changes in demand are not limited todegree title but also include content.Asked about the most valuable contentin an MBA, respondents to TomorrowsMBA2011-12 chose leadership,strategic management, managingpeople and organisations, businessand financial environment,marketing, and entrepreneurship.

Corporate finance, historically amainstay of an MBA, has dropped outof the top ten and has fallen in value

each year of the study. This doesnot mean that MBA students donot want to study corporate finance,

just that other subjects are seen asmore important and, perhaps,more valuable when seeking a job.Corporate finance was undoubtedlyimportant for those seeking roles ininvestment banks but the numberof positions is not as great as it oncewas and fewer MBA graduates arechoosing banking as a career.

At the same time, more studentsare thinking about starting their

own business or joining a start-upor small company. Entrepreneurialskills are much in demand whetherin a new business or driving changein established firms.

Delivering careers advice forentrepreneurs is often beyond thetraditional careers service. Instead,alumni are being recruited to offer theirexperience of starting a business andwhat it takes to be an entrepreneur.

Another change in the careers marketis the type of firms that MBA graduateswant to join. Universum, the employerbrand research firm, found in 2006 thatundergraduate business students putthree accountants and two investmentbanks in their top ten of preferredemployers, with Google at number fourand Apple at nine. When MBAs wereasked in 2011 who they wanted to workfor, there were no accountants inthe top ten and only one investmentbank; Google was top and Apple wasnumber three. Also in the top tenwere three consulting firms plusLVMH, Nestl, BMW and, at numbersix, The World Bank.

The inclusion of The World Banksuggests a change in attitudes amongMBAs and is reflected in the growingnumber of programmes that includesustainability, ethics and corporatesocial responsibility. Few MBAs want tostudy these subjects as stand-alone

items (there are few jobs for ethicists)but having these issues embedded incore MBA subjects and understandingtheir application is growing in popularity.

It is not just where MBA graduates gothat is changing but where they studyand where they come from. GMATtakers in East and South East Asia, forexample, grew by more than 23,000 inthe period 2006-07 to 2010-11.

23kIt is not just where MBA

graduates go that ischanging but where they

study and where theycome from. GMAT takers

in East and South East Asia,for example, grew by more

than 23,000 in the period2006-07 to 2010-11

Asked about the mostvaluable content inan MBA, respondentschose leadership,strategic management,

managing peopleand organisations,business and financialenvironment,marketing, andentrepreneurship

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29EFMD Global Focus | Volume 06 | Issue 03 2012The age of uncertainty by Andrew Crisp

The top-ranked schools are alsochanging. The FT Global MBArankings in 2012 had three Chinese,two Indian and one Singaporeanbusiness schools in the top 30alongside well-known European andAmerican schools. Only five years

earlier just one Chinese school madethe top 30 and there were none fromIndia or Singapore.

Private firms also have a greater rolein the MBA marketplace. The latestdevelopment in business education,although not for MBAs, is the entryof Pearson, publisher of the FT, intothe marketplace, with undergraduatebusiness degrees backed by a Britishuniversity. Competition for MBAcandidates is intensifying while the

total market size for the MBA maybe growing very little.

No one would be surprised to learnabout the importance of technology inattracting MBA candidates, especiallyGoogle and the business schoolwebsite, but there is much moreto electronic communication.

Five years ago when CarringtonCrisplaunched its GenerationWebstudy,the device most widely used byprospective students was still thedesktop PC, today it is the laptop withgrowing use of mobile phones, PDAsand tablets. Although the businessschool website remains important,increasingly it is the mobile app orthe social networking pages that arekey to engaging prospective students.

But its not just Facebook or LinkedIn.For international recruitment, schoolsneed to know RenRen, Hyves, Orkut,Tuenti and a host of other services.

While social networks are beginningto have an impact on recruitment,their greatest impact has been inand out of the classroom as studentsseek to collaborate in their studies.The 2012 GenerationWebsurvey showsa year-on-year increase in those usingsocial networks for their studies from17% to 39%.

ABOUT THE AUTHOR

Andrew Crisp is joint founder of CarringtonCrispand has worked with business schools for over a

decade, providing market research and marketingsupport to more than 100 business schools worldwide.

This is the generation that ten years agobegan sharing on the internet on sitessuch as Bebo and then moved toMyspace before Facebook and LinkedIn.Collaboration is second nature whetherit is fixing party details or researching aproject.

For the business school, whether itis offering a MBA or other businessdegrees, all of these changes canbe summed up in the need to bedistinctive. Too many schools appearto offer the same. One approach isto make better use of alumni, to usetheir stories post-graduation to bringmarketing messages to life. Focusingon outcomes provides a business schoolwith an opportunity to differentiate itsoffer in the competitive MBA

marketplace.Alumni are sometimes anunderutilised and undervalued assetat a business school. In a new study,

Alumni Matters, run by EFMD andCarringtonCrisp, few alumni say theywould not support their businessschool and many offer to help withthe recruitment of future students.However, alumni want a relationshiprather than a one-way flow of money,seeking personal and professional

development in return.In her book Different, Youngme Moon,Donald K David Professor of BusinessAdministration at Harvard BusinessSchool, says, difference is acommitment to the unprecedented,which is another way of saying it is acommitment to letting go. Get off thecompetitive treadmill thats takingyou nowhere. Aspire to offer the worldsomething that is meaningfully different different in a manner that is both

fundamental and comprehensive.

If there is one prediction about thefuture of the MBA marketplace, it isthat it will be different from what hasgone before.

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Gradualism

prevails & perceptionoutbids substanceUlrich Hommel, Mollie Painter-Morlandand Jocelyne Wangsummarise the results of the Third EFMD/EABIS Global DeansSurvey on Sustainability and the Future of Management Education

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31EFMD Global Focus | Volume 06 | Issue 03 2012Gradualism prevails & perception outbids substance by Ulrich Hommel, Mollie Painter-Morland and Jocelyne Wang

Societal awarenessof inequality, poverty,corruption and human

rights infringementsraises the question asto how future businessleaders need to be

prepared to addressthese challenges

Business schools playa key role in driving thesustainability agenda withinmanagement practice. They

do so not only by shaping and preparingthe next generation of business leadersbut also by influencing the perception

of the role and purpose of business insociety through their research, teachingand other activities.

Yet it remains unclear to what extentbusiness schools are actually drivingreal change. Practitioners havecriticised business schools for nothaving reacted forcefully enough to thefinancial crisis as well as the resultingdisconnect with the discourse amongbusiness leaders on how to strengthenthe role of businesses in society. Thereare both push and pull factors at workin business schools commitment tothe sustainability agenda. They includeenvironmental, societal, governanceand ethical concerns. After themyriad of ethical failures in business,stakeholders are becoming morevigilant in their demands for tangibleprogress. Increased environmentalrisks have also put the need forchange squarely on the businessagenda and hence on the agenda of

business schools.Societal awareness of inequality,poverty, corruption and human rightsinfringements raises the question as tohow future business leaders need to beprepared to address these challenges.While business schools have appearedreluctant disciples of sustainabilityin the past, they are now becomingslightly more observant in embracingthe subject. Integrating sustainabilityrelated aspects into school strategy

designs is now regarded as a tool toeffectively build up and/or strengthenthe institutional brand. (See articleTeaching sustainability, page 50.)

Accreditation standards are in theprocess of being adjusted to encouragea stronger focus on sustainabilityrelated performance. The aim of theEFMD-EABIS Global Deans Surveywas to examine the specific stepsundertaken by business schools in theireffort to drive the sustainability agendaforward.

Survey design

The survey was launched in April 2012and a total of 1,520 deans and directorsof business schools around the worldwere contacted, of whom 148 decidedto participate (9.7% response rate).Fifty-three per cent of the respondentsrepresent business schoolsheadquartered in Europe. Theremainder of the sample is based inthe Americas (18%), Asia (13%), MENA/Africa (10%) and Australasia/NewZealand (6%). Nearly one-third (65%) ofrespondents represent university-basedinstitutions; 53% represent schools of250 employees or more and 51% statedthat their student body exceeds 2,500.

Preliminary results were presentedat the 11th EABIS Colloquium held inJuly 2012 at IMD. Two complementarysurveys of business school faculty andCEOs have been launched this year,which will permit comparative analyseson how or whether the various businessschool initiatives are actually generatingtangible impact.

In the context of these surveys,sustainability has been broadly definedto cover the environmental, social,governance and economic dimensions

(ESGE). It reflects our view that thereis a pressing need for a new definitionof sustainable enterprise one thatunites the ecology based norms ofsustainable development and thesociety focused concepts of sharedvalue creation. The surveys havebeen designed to explore consensuson a range of ESGE factors perceivedto have the greatest impact on theglobal business environment in thecoming decade.

The aim of the Deans Survey was togather data and produce an overviewon how deans and directors view theintegration of sustainability issuesin teaching, research, corporateengagement and campus life. Thesurvey gauges the perception of deansand directors in terms of the centralityof the sustainability agenda, the keydrivers that determine the successfulintegration of this agenda, and themost serious blockages that stand

in the way of effecting real change.

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Key findings

The strategic relevance of sustainabilityis nowadays more widely acknowledgedby the business school community.Eighty-two per cent of deans anddirectors participating in the surveybelieve that ESGE has now movedfrom the fringe to the mainstreamof business school development. Theeconomic dimension in particularthe impact on a schools brand value,students and corporate demands remains the strongest driverfor change. In addition, 74% ofrespondents state that sustainabilityis by now firmly integrated into theirown schools mission.

The majority of respondents are,however, equally convinced thatbusiness schools are still notsufficiently close to the corporatesustainability agendas to formulatean appropriate response. Nearly half(49%) claim that they are not receivingclear messages from corporatepartners on their ESGE-related needs.This may largely represent a supply-push problem from the perspectiveof business schools.

In addition, just 49% of respondents

indicate that their institutionsco-operate with senior executivesto define research projects on ESGEtopics. Equally concerning, only 53%of respondents see their institutionsco-operate with chief learning officersand human resources officers ofcorporate partner institutions todefine learning priorities with respectto sustainability.

The persisting disconnect with thecorporate world may be partially due to

the fact that more than 60% of businessschools covered by the survey are nottargeting their placement activities atcompanies recognised as sustainabilitychampions. Over two-thirds (68%)of the respondents believe that theirdirectors of career services are noteven systematically asking whatsustainability-related skills corporatepartners are looking for. And 63%state that job placement servicesare not supporting the development

of sustainability-related skills.

Indeed, 53% apparently believe thattheir directors of career servicesdo not have the relevant knowledgeand expertise to advise students onsustainability-related career matters.

The business schools sustainability

agenda is largely managed from thetop end of the organisation, with 89%of respondents indicating that, as adean or director, they are in chargeof leading the ESGE agenda at theirinstitution. At the same time, theyacknowledge that, next to the seniormanagement team, programmedirectors and the faculty are the keyagents to help realise sustainability-related ambitions.

This top-down approach may indicate

strong commitment by the schoolleadership to prioritise sustainability ininstitutional development. However, Itmay also reflect a potential disconnectbetween head office and schooloperations. This view is supported bythe feedback that only 30% of surveyrespondents see sustainability directlyinfluencing annual performanceevaluations, while 34% indicatedthat it has no relevance whatsoever.

In line with this result, 25% believe that

the performance record in the areaof sustainability does have somebearing on tenure and promotiondecisions while 33% argue that it iscompletely irrelevant.

On a positive note 71% of respondentsstated that their institutions haveembarked on a change managementprocess to embed ESGE issues withincore research and teaching activities.

It appears that tangible progress has

been achieved in the research area.Business schools have visibly builtup their commitment to conductresearch on ESGE issues with 65%of respondents indicating they haveinstitutes and centres in this area and61% reporting the existence of dedicatedresearch teams within other institutesor centres at their school. Forty-eightper cent reported the existence ofchaired professorships and 39% of PhDprogrammes (or specialisation tracks)dedicated to sustainability.

Achievements are somewhat lessimpressive in teaching. Nearly allinstitutions covered by the surveyhave between two and fourcompulsory modules related tosustainability though 35% still do notcover the subject with a dedicated

module in their full-time or part-time(29%) MBA programmes. One mustconclude that a large part of thebusiness school sector is apparentlydoing little beyond what accreditingagencies consider a minimum.

The survey finally looked at the extentto which business schools areapplying sustainability considerationswhen managing their own physicalinfrastructures. The results areoverall very encouraging.

More than 70% of respondents statedthat their institutions have put in placelong-term targets to reduce theenvironmental footprint as wellas corresponding policies for theconstruction of new facilities and therenovation of existing infrastructure.Around two-thirds of the businessschools covered by the survey havealso established sustainability-related criteria for procurement as

well as behavioural guidelines forfaculty, staff and students.

It is, however, open to debate to whatextent the credit for these achievementsshould actually be awarded to thebusiness school. Within universitystructures, campus managementpolicies are typically establishedby the parent organisation andare also increasingly influencedby government regulations.

68%Over two-thirds (68%) of therespondents believe that their

directors of career services arenot even systematically asking

what susta inability related ski llscorporate partners are looking for

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Reflections

Business schools have unquestionablymade some notable progress inintegrating ESGE issues into themainstream of their development.A number of them are moving towardsmore comprehensive coverage intheir degree programmes and withbetter inter-linkages to functionalspecialisations. We further notea greater willingness to fundlarger-scale research programmes,frequently combined with theestablishment of formal researchinstitutes or centres. Finally, it hasbecome common that concernsfor sustainability are embeddedin campus management models.

The survey results also reveal, however,that business schools are strugglingwith serious challenges in terms ofincorporating the ESGE agenda intotheir activity portfolios: externally,to overcome the disconnect betweenacademia and corporate practice;internally, to bridge the gap betweenthe deans and directors positiveself-evaluation and the reality oflimited implementation in certaincrucial areas such as performancemanagement of faculty and staff.

Deans and directors still need todevelop a better understandingof corporate needs in terms ofsustainability-related skills andcapacities.

Business schools must also intensifytheir efforts to motivate faculty tointegrate sustainability into theirresearch and teaching activities.Above all, faculty reward systemsshould take into account that widelyaccepted research metrics such

as journal rankings and impactfactors still do not provide sufficientrecognition for sustainability research.

The issues to be addressed are clearlytoo important for the business schoolcommunity to wait until a positivemajority judgement has been renderedon what constitutes good and valuableresearch in this area.

Business schools have frequentlybeen criticised for primarily (ab)using

sustainability for marketing purposes.It is certainly the case that numerousdecision makers in the business schoolcommunity still consider sustainabilitya temporary phenomenon and a fad.

The survey results provide littleconsolation in this respect. Therestill appears to be too much focuson creating perception rather thansubstance.

Gradualism prevails & perception outbids substance by Ulrich Hommel, Mollie Painter-Morland and Jocelyne Wang

ABOUT THE AUTHORS

Ulrich Hommel is Director of Research and Surveys,EFMD, and Professor of Finance at EBS BusinessSchool.

Mollie Painter-Morland is Academic Director, EABIS(the academy of business in society) and AssociateProfessor of Philosophy at DePaul University.

Jocelyne Wang is Manager of European Affairsand Research and Surveys, EFMD.

Deans and directorsstill need to develop abetter understandingof corporate needsin terms of

sustainability-relatedskills and capacities

The survey looked at theextent to which business

schools are applyingsustainabilityconsiderations whenmanaging their own

physical infrastructures.

The results are overallvery encouraging

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Evolution, revolution? Whatever is happening, JrgenThorsell, Justin Bridgeand Fiona Gardnerdescribe

big changes in the way we are developing executives

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Dramatic revolutions that happenwith a bang are often less

dangerous than evolutionarychanges that creep in over time.Such incremental changes often go unnoticed with catastrophic consequences.

Think of Kodak and the evolution of digitaltechnology. Kodak did not recognise and adjustto the mortal danger digital cameras and mobilephones posed to its business until it was too late.In January 2012, after 131 years being regarded asone of the worlds most unbreakable companies,Kodak filed for bankruptcy.

There is a parallel change, albeit somewhat lessdevastating , underway in executive education.In their article Customised Executive Learningin the January 2012 edition of Global Focus,Gert-Jan van Wijk and Jamie Anderson arguedthat new ways of developing executives areabout to take over from the more traditionalmethods championed by business schoolsand academic institutions.

This is especially true for many advancedglobal corporations, which have for some timedistinguished executive development from

executive education and begun to favour theformer as a means of enhancing business impactthrough executive learning.

Whats the difference?

While executive educationis rooted in businessschools classic methodology of teachingtheoretical knowledge based on proprietaryresearch, executive developmenthas a behaviouralfocus and is aimed at improving the performanceof managers, executives and their businessesregardless of the theories and teachers employed.

Corporations have long struggled with andcomplained about the task of transferringknowledge gained through executive educationinto meaningful actions and impact on the job.This is not because the knowledge is not valuablebut because achieving significant, immediate andsustainable impact on the business is of evengreater importance.

It is generally believed that the expense of gainingknowledge cannot be fully justified unless thatknowledge is provided in the specific form andcontext required by the recipient to make a

sustainable difference in his or her workplace.

And since executive education tends to take placein classrooms detached in time and space from

the workplace, the likelihood of the knowledgebeing immediately relevant is low.

Over the past ten years or so, executive developmenthas matured to meet the demand for immediate

job relevance and sustainable impact. By makingthe executives own current job challenges thestarting point of the learning journey, executivedevelopment provides a learner-led process thatenables individual executives to realise whatthey must do to increase their impact and, evenmore importantly, howthey can do it.

But, though a behavioural focus is a key feature,the approach is not solely about behaviour. Thelearner-led process still offers relevant theoriesand best practices to deepen an executivesunderstanding of his or her situation and providea range of different perspectives and insights.However, rather than being presented carteblanche, these are provided according to eachexecutives unique challenge so theory and bestpractice insights are both immediately applicableand focused on results.

In a nutshell, modern executive development

creates impact by supplying knowledge, insightsand learning just-in-time to an individualexecutives specific job-based circumstances,making it immediately relevant and stimulatingsustainable behavioural change. Thus, theclassic challenge of transferring knowledgeinto meaningful action and impact is met.

If leadership is a relationship

Executive coaching, with its ability to enableexecutives to

Documents

Volume 06 _ Issue 03 2012