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1EFMD Global Focus | Volume 05 | Issue 03 2011

Volume 05 | Issue 0 3 2011

In focus

Welcome to the autumn edition of Global Focus.

Many of the articles in this issue debate the future of business schools,particularly in the areas of diversity, internationalisation and sustainability.

Thomas Sattelberger, Vice-President of EFMD, kicks off these issues inan article based on his presentation to this year’s Annual Conference inBrussels. In it he looks at how the world, and the world of managementeducation, is likely to appear in 2025.

Many of the elements he identifies are shared by Dipak Jain and ValeryKatkalo, who are interviewed respectively on page 16 and page 20.

Professor Jain is one of the emerging band of “serial deans” who spendtheir academic lifetimes heading two or even three of the world’s leadingbusiness schools while Professor Katkalo has been dean of the St PetersburgUniversity Graduate School of Management and its predecessor since 1997.

Another of the business school world’s most eminent deans, Arnoud DeMeyer, President of Singapore Management University, former director ofCambridge University’s Judge Business School in Britain and founding Deanof INSEAD's Asia Campus in Singapore, also contributes his ideas (Page 28).

His key message is that business schools need to become “Schools forBusiness”.

“This,” he writes, “is a paradigm shift for the world’s business schools,a tipping point that can become a quantum leap if scholars and researchersare brave enough to break out of their comfort zones, combine their arsenalof expertise and confidently propose analysis, insights and solutions ona smorgasbord of issues that confront organisations across multipledisciplines.”

In other articles, Martin Lockett and Matthew Gitsham (page 48) argue thatbusiness schools must embed “sustainability” in how they themselves workrather than just research and teach it. This is an idea picked up, in a ratherdifferent form, by Hennie Oliver and Johan Burger (page 32) in an article

that shows how business schools can be agents for sustainable business,economic and societal development in Africa.

Their article focuses on sub-Saharan Africa but looking at the other endof the continent Sherif Kamel, in an intriguing piece, looks at the challengesand opportunities for management education in the Middle East and NorthAfrica after the 10-month turmoil of the “Arab Spring”.

Finally, and perhaps on a lighter note, Mark Thomas and Matt Symondsdebate whether social media really have a role in promoting businessschools in “Will social networking kill the radio star this time?” on page 36.

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2 www.efmd.org/glo balfocu s

Global Focus

The EFMD Business Magazine

Executive Editor

Matthew [email protected]

Advisory Board

Eric Cornuel Jim Herb oli ch

Howard Thomas

Consultant EditorGeorge Bickerstaffe

bicke rsta ffe@b tinte rnet. com

Contributing Editors

Edwin Andrews, C B Bhattacharya,

Johan Burger, Peggy Cunningham,Kevin Dalton, Arnoud De Meyer,

Marcin Geryk, Matthew Gitsham,Ulrich Hommel, Sherif Kamel, Daniel

Korschun, Martin Lockett, David McKie,

Hennie Oliver, Thomas Sattelberger,Sankar Sen, Matt Symonds, Mark Thomas

Design & Art Direction

Jeben s D esig n www.jebe nsde sign .co.u k

Photographs & Illustrations© Jeben s D esig n Lt d / EFMD

unless otherwise stated

Editorial & AdvertisingMatthew Wood

[email protected]

Telephone: +32 2 629 0810

EFMD aisbl

Rue Gachard 88 – Box 31050 Brussels, Belgium

www.efmd.o rg/g lob alfo cus

©EFMD

Volume 05 | Issue 0 3 2011

Contents

1 In focus

4 Talking ShopCEIBS-EFMD China conferenceSustainable degrees and websites?EFMD tweetsFive new EPAS schools

8 2011 EFMD Excellence In Practice Award Winners

10 Business education 2025: what’s in storeThomas Sattelberger outlines the changes that he believes will dominatebusiness education in 2025

16 ‘Whatever we are doing, do it better’That, in short, is the message to INSEAD from its new dean, Dipak Jain.Interview by George Bickerstaffe

20 Window on the worldSt Petersburg University Graduate School of Management is one of Russia’smost internationalised and open business schools. Dean Valery Katkalodiscussed the school’s philosophy and progress with George Bickerstaffe

24 Extended coverage: Accrediting the education of business scholarsUlrich Hommel describes the challenges involved in extending the coverageof EPAS to doctoral programmes

28 Does the DNA of business schools need to change?Arnoud De Meyer suggests a new approach to meet new challenges

32 Into Africa Hennie Oliver and Johan Burger argue that business schools can be agentsfor sustainable business, economic and societal development in Africa

36 Will social networking kill the radio star this time?Mark Thomas and Matt Symonds debate whether social media really havea role in promoting business schools

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News and events in brief from the business world

Talking shop

EFMD to host public-sector symposiumFor the first time, EFMD will hold asymposium to focus on ways to handle themany dilemmas public-sector managers andleaders face. The PS Symposium will providea setting conducive to personal participation,commitment and reflection and is aimed at

1) Those who have HR-oriented functions inpublic sector organisations or public services

2) All managers and leaders in publicorganisations who carry the burden of havingto do more with less – and more quickly too

Generally, the PS Symposium is intended forthe curious and the thoughtful who seek ahaven for fruitful and constructive debate,questions and ideas in a network of diversity.

Day 1 offers the opportunity to analyse the

issues of your concern through severalphases of investigation. With otherparticipants, you will seek a deeperunderstanding. The quest is for more clarityon conditions and dilemmas in the publicsector.

Day 2 builds on the basis of results from Day1 and aims for in-depth scrutiny of the issues.

Throughout the symposium, experiencedfacilitators will be at hand to offer supportand inspiration. We do not promise to solvethe challenges you are faced with. But we do

promise you will have a fine opportunity togain new knowledge, insight, inspiration andperspective.

Public Sector Symposium

HOSTED

EFMD, Brussels

DATES

29 + 30 November

For further details visit:

www.efmd.org/events

Joint EFMD-EURAM Programmeon Developing Research Managers:Creating Research Leadership in Europe

EFMD and EURAM will for the third time co-operate on their programme,Developing Research Managers: Creating Research Leadership in Europe.

It is important for business schools to contribute to the creation of knowledge.However, each institution is faced with challenges to develop an appropriateresearch strategy and to implement that strategy. In order to strengthen theirmembers’ capability to develop high-quality research, EFMD and EURAM have

joined efforts to offer this professional development programme.

The programme aims to prepare individuals in European business andmanagement schools to step into significant research management rolesthrough exposure to a wide range of strategic and operational concerns.Particular emphasis will be placed on preparing individuals for the role ofResearch Director and in building a community of research leaders inEuropean business and management schools.

The programme consists of three compulsory modules all held at the EFMDpremises in Brussels:

20-21 October 2011

15-16 December 2011

8-9 February 2012 + 10 February 2012 (Alumni Day)

For more information, please contact either:Luisa Jaffé, Administrative Coordinator, EURAM:[email protected]

or

Robin Hartley Manager, Network Services, EFMD:

[email protected]

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7EFMD Global Focus | Volume 05 | Issue 03 2011Talking shop

The EPAS Accreditation Board has recently awardedthe EPAS quality label to the following programmes:

EMBA ProgrammeLorange Institute of Business, Switzerland

Master of EconomicsPeking University, HSBC Business School, China

Master Grande EcoleEcole de Management de Normandie, France

Master in Strategic EntrepreneurshipJönköping International Business School, Sweden

BA (Hons) Business Studies SuiteUniversity of Portsmouth Business School, UK

“EPAS is based on the same principles as EQUIS. Werecognise programmes for successful internationalisationand are most demanding with our standards in the areas ofacademic rigour, corporate relevance and quality assurance.We want to attract the premium segment of international

academic management programmes worldwide,” said ProfEric Cornuel, Director General and CEO of EFMD.

“The growing demand for EPAS accreditation clearlyreflects the widespread need of business schools to assessthe academic rigour and the professional effectiveness oftheir programmes, often newly designed for Bolognafitness, while simultaneously receiving public recognitionfor successful internationalisation,” said Prof UlrichHommel, Associate Director of Quality Services at EFMD.

EPAS was developed by EFMD in response to the manyrequests of its members to offer programme-level

accreditations. The feedback from the market has beenvery positive, which is clearly reflected by the EPASnumbers after only five years of regular operation.

Currently there are 61 accredited programmes from 47institutions in 21 countries and, considering all EPASaccredited and EPAS eligible programmes, the marketcoverage for EPAS currently extends to 89 programmesfrom 66 institutions based in 29 countries covering all fivecontinents.

A quarter of the total are (E)MBAs, 32% masters, 27%bachelors, 4% doctoral programmes and 12% are non-Bologna country-specific programmes.

The EPAS process considers a wide rangeof programme aspects including:

–The market positioning of the programme

nationally and internationally

–The strategic position of the programmewithin its institution

–The design process including assessmentof stakeholder requirements – particularlystudents and employers

–The programme objectives and intendedlearning outcomes

–The curriculum content and delivery

system

–The extent to which the programme hasan international focus and a balancebetween academic and managerialdimensions

–The depth and rigour of the assessmentprocesses (relative to the degree level ofthe programme)

–The quality of the student body and of

the programme’s graduates

–The institution’s resources allocatedto support the programme

–The appropriateness of the faculty thatdeliver the programme

–The quality of the alumni and their careerprogression

For more information on EPAS visit:

www.efmd.org/epas

EFMD awards new EPAS accreditations

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Unlock the power of global project management

certification and PMI membership.

Give your students a

competitive advantage

Leverage an outstanding opportunity to offer the certification

and access to knowledge and networking resources your

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in their careers. Find out how you can offer your students

the many benefits of PMI’s Certified Associate in Project

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as a part of your project management module.

Visit www.PMI.org/SmartStartGlobalFocus to download PMI’s

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+ Plus, qualified faculty participating in the program will receive

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A global study by the

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success.”1

1 Taking Stock and Looking Ahead: Staff Performance, Economist Intelligence Unit report, 2008.

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17EFMD Global Focus | Volume 05 | Issue 03 2011 Whatever we are doing, do it better: Dipak Jain interview by George Bickerstaffe

Dipak C Jain (left) is, as ever, in ebullientform. He bustles into the hotel lobby,bestows a big hug and then disappearsto sort out a problem with his luggage.

He is on a brief visit to London on INSEADbusiness but cheerfully squeezes in the timefor an hour-long interview.

He has been dean of INSEAD since Maythis year after more than 25 years on thefaculty of Northwestern University’s KelloggSchool of Management in America. That timeincluded eight years as dean and an earlierfive yearsin the dean’s office, working closely with hispredecessor Donald P Jacobs, who servedas Kellogg dean for 26 years.

Professor Jain stood down as Kellogg’s deanin 2009 after leading the celebration of theschools’ centenary.

“I realised this was a good time to think aboutthe next chapter,” he says. “The school haddone a hundred years and was in very goodshape. I thought that if I stayed longer Iwould have to think of planning for the nextphase and I wasn’t sure there were newthings I could do. I was 52. I had spent 13years in the Dean’s Office and I thought ‘let’sthink about the next 13 years’.

“Anyway, I’ve always believed that an exitstrategy is more important than an entrystrategy. You need to know when to leave.”

When the call from INSEAD came he was inthe middle of a sabbatical year after standingdown and contemplating a return to academiclife, possibly at Kellogg (though he wasn’tsure about that) or at Harvard BusinessSchool, which had offered him a faculty post.

The negotiations with INSEAD weresomewhat prolonged – not least becausethey coincided with the eruption ofIceland’s Eyjafjallajökull volcano, whichparalysed air traffic in Europe for severalweeks in April 2010.

But the extra time gave him plenty ofopportunity to learn about the schooland, he says, “the more I learned, themore I became interested in the school”.

There are, he argues, three things aboutINSEAD that make it different to otherschools.

First, it is a global business school because itis not tied to a particular region; it is “locationindependent”, as he puts it. And creating aSingapore campus ten years ago showed thatit was interested in reaching out to other parts

of the world.

Second, it has a focus on diversity.

“In the student body they don’t take a largepercentage from any particular country.There are students from almost every countryin the world – every section is like the UnitedNations, which I think is what the world isgoing to look like in the future. Studentsat INSEAD don’t need to take a course incross-cultural management – it’s happeningall around them every day”.

Third is INSEAD‘s commitment to research,with a PhD programme that Professor Jainsays is world class.

“So I thought that a business school that isdedicated to being a top research institution,is focused on diversity and is also truly global– well this is different,” he concludes.

The move from Kellogg to INSEAD putsProfessor Jain into the elite world of whathe calls “serial deans”, moving from headingone top business school to leading another.

This, he believes, will increasingly be the norm.

“It’s now two terms maximum for a dean at abusiness school,” he says. “Personally, I thinkthat in two terms you will have done what youwanted to do. The total time spent as a deanwill be the same as Don Jacob’s 26 years atKellogg but spread over, say, two or threedifferent institutions.”

So, now that he is in position, will there begreat changes at INSEAD?

Professor Jain says that rather than changeINSEAD, he wants to build on what is therealready – though there are certain areaswhere he wants to build.

“INSEAD says it is a ‘business school for theworld’,” he says. “It’s a nice line but I want tolearn what it means. And one thing I want tomake sure is that people say for themselvesthat INSEAD is a business school for theworld in the sense that it represents allparts of the world.”

There are threethings that make

INSEAD different– it’s a global businessschool not regional,its focus on diversity,and it’s commitment

to research

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He says there are currently threepillars to support this: INSEADFontainebleau is a presence inEurope; INSEAD Singapore is agateway to Asia and the AsiaPacific; and INSEAD Abu Dhabiserves the Middle East and Africa.(In fact, increasing INSEAD’s

presence in Africa is one ofProfessor Jain’s major initiatives.)

“But,” he adds, “you cannot be abusiness school for the world if youdo not have a presence in America.So one of our main aspirations is toincrease our presence there. Wedon’t know yet how that will look,whether it will be an alliance withan American school or our owncampus. We could expand ouralliance with Wharton or [with

Wharton’s agreement] open a newalliance in addition to Wharton.”

He argues that America is a very bigmarket for executive education andthat INSEAD could exploit its globalrange as a key competitive advantage.

“American companies are lookingfor global education,” he says.“Because a large chunk of theirmoney now comes from outsideAmerica they need people who canwork in other parts of the world.”

The other thing he wants to do isreverse what he sees as INSEAD’sfailure to “leverage” Paris. (In fact,Fontainebleau is about an hour fromthe French capital.)

“Paris is a global city. Fontainebleauis fine but a senior executive on anadvanced management programmemay want to bring his or her spouseto Paris for a week. They will getmore excited by that than by coming

to Fontainebleau where there isnothing to do after 5.30 pm.” Onesuspects he is only half joking.

Professor Jain also points outthat an executive education centrein downtown Paris could addsignificantly to the school’s globalbusiness model by, for example,bringing Asian executives toprogrammes in Paris and takingEuropeans to Singapore.

All these development will not, he

argues, make INSEAD significantlybigger.

Our identity is a global school, whichis a very powerfulthing and is goingto become moreimportant. Thatis our brand

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“The only thing that is likely togrow is our executive MBA,” hesays. “But even there it will not beso much in terms of numbers butin resources allocated to it. Thefocus throughout the school willbe on quality rather than quantity.The message is: ‘whatever we are

doing, do it better’.”This, of course, is all part of thefiercely competitive global marketthat business education hasbecome. Now with experience ofboth sides of the Atlantic, how doeshe think American and Europeanbusiness schools compare?

The major difference, he says,is that American schools arefinancially very stable becauseof their endowments.

“They have shock absorbers builtin. The European schools don’thave that,” he says.

A second difference, he suggests,is that American schools tend tohave very clear identities – Wharton

is a school for finance, Kelloggfor marketing, Stanford,for venture capital and

entrepreneurship, and so on.European schools, includingINSEAD, tend to be seen as verymuch general managementschools.

“Our identity is a global school,which is a very powerful thingand is going to become moreimportant. That is our brand,” hesays. “But, of course, other schoolsare also trying to become global.So one of the main things we haveto ask ourselves is what would we

like to be? And if we want to beglobal, what do we have to do tostay ahead of the competition?”

One key might be the way businessschools are organised.

“Because INSEAD is anautonomous institution you can

be more entrepreneurial. If youwant to do something new then thespeed to market can be very fast.”

“In a university setting, I wasvery lucky at Kellogg to havethe full support of the centraladministration in terms of whatwe did but sometimes it can slowdown the process because youhave an extra layer. And rightfullyso because the university has abrand to look after too.”

The drawback that he sees isaround governance. A universityprovides a strict hierarchy that isclear and understood, he pointsout. It may be cumbersome but it isat least transparent. In standaloneinstitutions, he says, structuresand hierarchies can be veryinformal so that it is very importantthat faculty and administratorsact and behave in a way that istransparent.

Professor Jain believes there arefour key challenges currentlyfacing deans at leadings schools:how to be global; the businessmodel for business schools;building faculty; and managingstudent expectations.

“All deans are asking the question:What does it mean to be global?How do you become global? Is itthe number of foreign students?

An internationalised curriculum?Do we build an overseas campus?Create alliances?

“Another issue is the businessmodel of business schools. Dowe have a sustainable businessmodel?

“An important challenge is how doyou continue to build the faculty?It’s not just about attracting goodfaculty it’s about attracting,developing and retaining goodfaculty. It’s a big issue because if

you have very good faculty theywill be picked off by other schools.So attraction is important butretention is really the key factor.

On managing students’expectations, he says deans needto ask themselves “are studentscoming to your business school for

learning or earning? Some of themthink that by coming to a businessschool a job is guaranteed. That isnot the case. We are happy to helpbut we are not an executive searchfirm”.

On the future of managementeducation, he sees businessschools moving beyond business.

“There are still students who wantto be scientists and engineers

and don’t see management asimportant,” he says. “Now theymay not need an MBA but they doneed to know the fundamentals ofbusiness. I think it’s very importantto bring the two disciplines ofmanagement and science andtechnology together.”

He also believes that the businessschool curriculum needs to bebroadened.

As his name implies, ProfessorJain is a follower of Jainism, anIndian pacifist religion that datesback to at least the 6th Century BC,and which strongly motivates him.

He believes that religion and thearts, particularly Shakespeare –“his thoughts on leadership arevery profound” – should have aplace in business schoolclassrooms.

“I really believe that management

education is going to becomemore and more important thanever – but not just the MBA,” heconcludes, citing the growth ofspecialist masters programmesas a welcome trend.

“We have to think of new products,of new ways of disseminatingmanagement knowledge. I thinkwe need to go into subjects moredeeply.”

Whatever we are doing, do it better: Dipak Jain interview by George Bickerstaffe

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St Petersburg University GraduateSchool of Management is one ofRussia’s most internationalised

and open business schools. Dean Valery Katkalo discussed theschool’s philosophy and progress

with George Bickerstaffe

WINDOW ON THE

WORLD

Famously, when Tsar Pyotr AlexeyevichRomanov (Peter the Great) founded hisnew capital, St Petersburg, on the marshyRussian littoral of the Gulf of Finland in1703 his intention was that it would open

Russia to what he saw as the modernisinginfluence of Europe.

Not surprising, then, that the city’s GraduateSchool of Management (GSOM), a facultyof St Petersburg University, is one of thecountry’s most internationalised and openbusiness schools.

“Remember that the school is located in acity set up by Peter the Great as the Russia’s‘window on Europe’, ” says Professor ValeryKatkalo.

Professor Katkalo, friendly and self-effacing,has been Dean of the school since 1997 andplayed a major role in its creation in 1993.He is also a ViceRector of St PetersburgUniversity, the oldest academic institution inRussia and founded (again by Peter the Great)in 1724.

The GSOM SPbU (initially just the Schoolof Management) was born in 1993, inpartnerships with Haas School of Business,UCBerkeley and several international and

local companies, led by Procter & Gamble.The aim was to create a modern internationalbusiness school to support the developmentof a market economy in Russia.

The school began with just four full-timeteaching faculty (of which Professor Katkalowas one) and 33 undergraduate students.Today there are more than 1,200 degreestudents (half are postgraduates) studyingbachelor, pre-experience masters, ExecutiveMBA and doctoral programmes plus non-degree executive education programmes.

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21EFMD Global Focus | Volume 05 | Issue 03 2011 Window o n the World: GSO M St Petersbu rg by G eorge Bickerst affe

1724St Petersburg University, the

oldest academic institution

in Russia and founded by

Peter the Great in 1724

GSOM now has 65 full-time professors andmore than 90 part-time and visiting Russianand international professors. It haspartnership links, including joint programmes

and double degrees (in Master inManagement and EMBA), with some of theleading business schools around the worldsuch as HEC-Paris, Fuqua School of Businessat Duke University, WU-Vienna University ofEconomics and Business Administration, andAalto University School of Economics.

Professor Katkalo believes this growth isdue to the combination of classical universitytraditions and innovative approaches tobusiness education within the GSOM,specifically its strong commitment to the

internationalisation of teaching and research,an emphasis on creating new knowledge, andstrong ties to the national and internationalbusiness community.

The school has had an internationalfocus since its inception. The four originalacademics were initially chosen partlybecause they all had internationalexperience. (Professor Katkalo studiedundergraduate and doctoral degrees ineconomics at St Petersburg University andwas a visiting scholar at Haas in the early

1990s where he was closely involved inhelping to set up the partnership.)

The GSOM’s international status has been theresult of a well-thought-out strategy based onprogress on a number of separate but relatedfronts: rankings, accreditations, internationalpartnerships and membership of leadinginternational bodies in the managementeducation sector. On accreditation, forexample, the Association of MBAs (AMBA)accredited the school’s Executive MBAprogramme in 2008, the first time a Russianbusiness school had received thisaccreditation for the maximum periodof five years at the first attempt.

In another first for a Russian school, theBachelor of Management programme haswon EFMD’s EPAS reaccreditation, again forthe maximum five-year period.

“EPAS was a very valuable learningexperience,” says Professor Katkalo, “andthough it’s a programme-based accreditationits value lies in synergies across the school.

“For example, the emphasis on increasedimprovements in internationalisation certainlydoes not apply to just to one set of students.Also, developing a well-functioning system

of pedagogical review is not somethingthat applies to just one programme buthas potential synergies for programmesthroughout the school.”

Today GSOM has over 40 of the world’s leadingbusiness schools and universities (fromEurope, North and South America, and Asia)among its academic partners and runsstudent exchanges based on bilateral credittransfer.

In a further stage, in 1999, GSOM became partof the NEBSEN consortium with four otherleading North European Business Schools(Copenhagen Business School, StockholmSchool of Economics, Helsinki School ofEconomics, and the Norwegian School ofEconomics and Business Administration,Bergen). Its aim was to increase the mobilityof international students between institutions.

As the new millennium began, GSOM hadcreated Russia’s first English-languageECTS-based masters programme. Theschool now offers four graduate programmes

delivered entirely in English.Another stage began in the mid-2000s. GSOMidentified joining global associations of topbusiness schools as a priority. This meantthe general internationalisation of allprogrammes and activities of the school.GSOM is now the only member representingRussia in CEMS (the Global Alliance inManagement Education, formerly theCommunity of European ManagementSchools and International Companies),PIM (the Partnership in International

Management), GBSN (Global BusinessSchool Network), EABIS (European Academyof Business in Society).It is also a memberof other bodies such as EFMD, AACSB, GRLIand GMAC.

GSOM has assiduously developed its linkswith the business community, both in Russiaand internationally. Company executives areinvolved with the school through joint researchprojects, as guest lectures, courses, offeringsummer internship programmes and otheractivities.

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The GSOM Alumni Association is also strong,with over 4,400 graduates as members.

“We consider our systemic relationship withthe business community as one of our keystrengths,” says Professor Katkalo. “Since ourbeginnings in the 1990s we’ve been very luckyto have had a very strong Advisory Board.”

Indeed, the Advisory Board, which was set upat the same time as the school and was thefirst in Russia, has been highly instrumentalin building business contacts. For its first tenyears the Advisory Board was chaired by JohnPepper, at the time President and CEO of themultinational group Procter & Gamble. NowChairman of the Board of Walt DisneyInternational, he remains closely involvedwith the school.

“John offered tremendous support, bothintellectually and in terms of resources to

the school in the early days,” says ProfessorKatkalo.

Today’s 33-member Advisory Board is onethat many top business schools would envy.Ranging from Russian Deputy Prime MinisterSergei Ivanov to Alexey Miller, Chairman of theManagement Board, Gazprom, and RobertMcDonald, President and CEO, Procter &Gamble, it takes in the heads of some of theleading companies in Russia and the worldas well as deans of top international businessschools. These companies are active both in

recruiting GSOM graduates and in supportingdevelopment of its educational and researchprogrammes. For example, among recentinitiatives strongly backed by GSOM corporatepartners are Deutsche Bahn & RussianRailways Center for International Logisticsand Supply Chain Management and PwCCenter for Corporate Social Responsibility.

The GSOM has taken a further interesting steptowards involvement with the business worldthat also neatly dovetails with its desire forinternational links and exposure. This isan enthusiastic and successful studentinvolvement in business games (such asthe ones organised by L’Oreal, KPMG, andMicrosoft) that the school actively encourages.

GSOM teams have regularly won businessgame competitions at both national andglobal levels. This year, for example, a teamof three GSOM students won the L’Oreal "RU HR?" Business Game International Finalin Paris.

In 2006, as part of a national review of

business education, the school was selectedby the Russian government as one of two

We have theambition, of course,to be the top Russian

business schoolwith strong globalstanding

new “pre-eminent” business schools inRussia (and renamed the Graduate Schoolof Management in the process). A strongdistinctive feature of St Petersburg UniversityGSOM is that it follows the university model ofa business school with a diversified portfolioof (mainly degree) programmes, includingbachelors, masters, Doctoral and EMBA, with

an emphasis on producing new knowledge,and developing its own body of professors withstrong international academic recognition andstrong corporate connections.

The other school is Moscow School ofManagement SKOLKOVO, a brand newstart-up near Moscow and also backedby a group of Russian and internationalbusiness leaders. It follows the so-calledentrepreneurial model of a business schoolwith no university connections and focuseson MBA/EMBA programmes, executive

education and “learning by doing”.According to Professor Katkalo, the idea is notthat the two projects of developing world-class Russian business schools will meet all

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23EFMD Global Focus | Volume 05 | Issue 03 2011 Window o n the World: GSO M St Petersbu rg by G eorge Bickerst affe

transition but about competing successfullyin the global and knowledge-based economy.

He adds that “Russia is one of the fewcountries with huge potential for growth. It’snot only a player in the global market it’s alsoan emerging market itself. If you want tostudy change management or study how youmanage in fast-growing markets Russia is

one of the very few territories in the worldwhere you can do both. So we should be oneof the key providers and facilitators of thesekinds of programmes.”

As for the future, the GSOM is preparing anew campus in the historic MikhailovskayaDacha in Peterhof, a series of palaces outsideSt Petersburg modelled on Versailles inFrance.

The 104-hectare site contains a number ofhistoric buildings that are being renovated,

restored and adapted to the needs of amodern business school. The work isexpected to be complete in about three years.

Otherwise, according to Professor Katkalo, theemphasis for the moment is on consolidation.

"Among the main foundations for GSOM’sfurther growth are world –class facultydevelopment and research capabilities,"he says. "Our faculty is well known for its

teaching excellence and research productivity(measured by publication in A and B journals)and is growing at an impressive rate."

The school is well-known as the mainproducer of cases on doing business in Russiawith about 360 cases and teaching notes in itscollection out of which about 130 are alreadyregistered at ECCH. Another area whereGSOM has recently expanded is corporateexecutive education, with Russian Railways,Rosneft, Sberbank and IBM among its mainclients.

"We have the ambition, of course, to be thetop Russian business school with a strong

global standing. Achieving that means wehave to continue to internationalise ourfaculty, develop further our researchcapabilities and internationally recognisedPhD programme, continue to work on ouralready strong international alliances andso on," he adds.

"It’s not like it was when the school started,when we were trying to build a professionalbusiness school in a very unusualenvironment – a post-soviet country. Todayit’s really about capitalising on what we have

achieved, moving forward and being on theleading edge of global trends.”

of the nation’s management education needs– he believes that would need “at least adozen” – but to work out which model ofbusiness school suits the country best.

Whatever happens Professor Katkalo(pictured above) believes that a specific

Russian approach to management educationis likely to emerge, though he stresses thiswill need to focus on the future rather thanthe past and must embrace internationalism.

“As you know, Russia has historically beenpositioned between two worlds. This hascertain cultural implications but it also givesRussia some real advantages,” he says.

“There are at least three things that we cancombine: the global advances in managementthinking and practice, increased integrationwith Europe and, not least, the Russianapproach to management and education,which I would say is very humanistic andpeople-focused.”

He points out that when the school startedRussia was “a different country" which wasstruggling with the transition from a socialistto a market economy. Since then a generationhas grown up that has only known marketeconomics, has greatly increasedinternational experience and is willing (andvia new technologies quite able) to compare

and question all elements of society. Today,Russia’s main challenge is not about

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To be truly a “School for Business” it is alsoimportant to build strong relationships andstrategic partnerships with the businessworld. In its short ten-year history, SMUhas forged close ties with major industrystakeholders through internships, executiveeducation, postgraduate studies, researchcentres and institutes, corporate social

responsibility and philanthropic partnerships.The university has held steadfast to itsmission of integrating the two worlds ofeducation and business, sharing the wealthof knowledge with the business world andbringing industry wisdom into the halls ofacademia.

SMU has 19 research centres and institutesthat bridge academia and business. Thesewere formed through partnerships andcollaborations with leading businessorganisations and institutions. Tappingthe pulse of the latest market trends, theycarry out research on most current issuesand share the outcomes with businessleaders. I will just share a few examples.

The university’s Sim Kee Boon Institutefor Financial Economics is a specialisedthink-tank that carries out research acrossfinancial econometrics, the impact ofageing populations on retirement funds,corporate and investor responsibility, assetsecuritisation and management in Asia.

Last year, three SMU faculty from differentdisciplines – finance, economics andinformation systems – carried out acollaborated study of the “Flash Crash”,which took place in New York on May 6, 2010.Sponsored by the Institute for FinancialMarkets in Washington DC, the study deployedcomplex system research to conduct a marketsimulation, understand the causes behindit and recommend possible interventions.

The Institute of Service Excellence is involvedin a number of inter-disciplinary projects.

The institute, which is rooted in marketingresearch and expertise in customersatisfaction benchmarking, has invitedresearchers in organisational behaviour andhuman resources to develop a new structuralmodel to measure fair dealing in financialinstitutions when they conduct businesswith customers such as financial advisoryservices and selling investment products andservices. The institute has also collaboratedwith faculty in information systems to studythe relationship between IT innovations and

customer experience in large organisations.

Leadership has evolved fromthe days of traditional ‘command

and control’ to today’s collaborativeleadership, which suits presentbusiness climates better

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The SMU-Carnegie Mellon Living AnalyticsResearch Centre, the newest addition tothe slate of research centres and institutes,is in the middle of a study on social mediaby applying management science conceptsto predict trust and relationships amongmembers of the online community suchas product reviewers on Epinions, and

buyers and sellers over eBay. The studyinvolves researchers in three distinctareas: information systems, sociologyand organisational behaviour and humanresources.

Moving on to teaching, we know that businessschools (and their MBA programmes) arelargely about leadership development. Weare preparing graduates to take on leadershippositions in the business world.

Leadership has, however, evolved from thedays of traditional “command and control”to today’s collaborative leadership, whichsuits present business climates better.Leaders are now expected to have skillsin collaboration, listening, influencingand flexible adaptation. How can businessschools impart such qualities? One way is

to ensure that students are well anchoredin their area of expertise but also sufficientlyexposed to wider disciplines outside theirscope of specialisation.

SMU embraces this in our undergraduatecurriculum. Every freshman takes a bundleof diverse courses as part of the UniversityCore to develop essential skills in analyticaland creative thinking, communication,leadership and teambuilding, ethics andsocial responsibility, and understandingthe relationship between business,

government and society in the contextof world developments.

As they go on to specialise, a wide range ofelectives in the arts and sciences are availableto broaden their perspectives and exposethem to areas beyond their disciplines. Theseinclude courses in European languages,Shakespeare, film, dance, theatre,entertainment industries, environmentalscience, biotechnology and bio-entrepreneurship.

We believe a broad-based exposure makesstudents much more versatile, open-minded,people-sensitive and adept in real-worldproblem solving.

Inter-disciplinary teaching is helped, to a greatextent, by having SMU’s business schoolwithin a larger university for the world ofbusiness and management.

As businesses struggle to put in placemeasures to address gaps in governance andregulation in the wake of corporate scandals,universities can play a part by inculcating the

right values through character building.

Universities are entrusted with the public dutyof education. We contribute towards thegreater good of the global economy andwider society by enriching, shaping andtransforming students who will go on tomake a difference in society. This is a rolewe need to discharge conscientiously.

Transforming business schools into ‘Schools for Business’ by Arnoud De Meyer

ABOUT THE AUTHOR

Professor Arnoud De Meyer is President,Singapore Management University

19SMU has 19 research centres and institutes that bridge academia

and business, formed through partnerships and collaborations

with leading business organisations and institutions

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33

EFMD Global Focus | Volume 05 | Issue 03 2011

Africa is frequently seen as the "dark

continent", a provider of raw materials

and resources for use by the developed

economies of the rest of the world. Some

authoritative figures in the West have

even gone so far as to state that Africa is

irrelevant as far as investment destinations

are concerned.

The end result? An Africa where theeconomies and people have largely beenneglected. Poverty is rife and disease isfrequently endemic. Some countries areseen as prime examples of corruption andfraud, both at governmental and businesslevels. The continent has become a challengeas far as business and social developmentare concerned.

In order for Africa to grow and develop to alevel where it can become self-sustainable,

it needs to grow and develop its economies,businesses and the people within thosebusinesses and societies.

It needs to be seen as a systemic wholewhere the political, economic, social andtechnological spheres all play a role to ensurea synergistic path to wholeness – somethingAfrica as a whole is severely lacking.

It is not as if Africa has nothing to offer. It isa resource-abundant continent.

Africa, however, cannot rely on its resources

alone. Industries need to be developed. Oilwas recently discovered in Ghana and evenmore recently off the coast of Namibia, wherereserves of 11 billion barrels of oil have beenfound. With the reserves of Angola, Ghana,and Nigeria included, Africa can indeed beseen as an oil-rich continent.

Africa also has one billion people, which isby no means a small target market. Africais therefore no longer a continent to ignore.And those who do will do so at their ownperil. China, for one, has realised this and

is busy with an intensive programme ofinvolvement in the economies of Africa.

Africa itself, however, cannot sit back andwait for the rest of the world to generatedevelopment programmes for the benefitof the African continent. Africans need totake the initiative and lead this drive todevelop the economies and businesseswithin their societies.

Business schools in Africa are uniquelyplaced to assist with the development ofthe African continent. They have accessto educated and talented people whounderstand the environment and culturesand who have the competencies to drive thisprocess. Furthermore, they have the globalsupport networks to tap into for the sake ofgrowing and developing Africa and its people.

It is the responsibility of business schools tohelp businesses to grow and develop. Theyneed to play an important role to ensure

that businesses understand the challengesand are able to grow and be profitable ona sustainable basis. This requires thatmanagers and personnel of Africanbusinesses should be educated anddeveloped.

Business, however, is part of a broadersociety. African businesses therefore needto be sensitive towards the needs andchallenges facing the societies within whichthey function. They need to understand theissues of political and social stability, of

education and health, to name but a few.

They also need to understand that they drivebusiness sustainably within an eco-system.It is no longer acceptable to live and dobusiness within a worldview and mindsetunderpinned by the belief that the worldis there for us to exploit and that there willalways be resources available in abundance.

The greatest challenge probably deals withthe development of the people of Africa. Asa point of leverage, it probably also is the one

area where Africa can start with initiatives thatwill eventually give the largest multiplier effect.

Into Africa by Hennie Oliver and Johan Burger

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34

www.efmd.org/gl obalfocu s

As academics such as James Heskett (BakerFoundation Professor, Emeritus, of HarvardBusiness School, in Boston) have shown, inorder for profit and returns to be high enough,the first area in the value chain (or servicechain) lies in developing an employee value

proposition that leads to a developed andengaged employee force. Once again, thisdevelopment cannot happen in isolation frombroader societal developments, includingembracing the issue of sustainability howeverbroadly defined.

It is interesting to note that in a set of fullSouth African scenarios of the early 1990s(the Mon Fleur scenarios), the scenariodevelopment team identified a healthyeconomy as the driving force behind thetransformation of South African society.This obviously needed to take the broadercontext of society into consideration.

In spite of not being sufficient, a healthyeconomy needs to be seen as a veryimportant requirement factor in the greatertransformation of South Africa. Businessschools in Africa will do well to rememberthis caveat.

Business schools should concentrate onthat part of the solution they are uniquelyqualified to participate in, namely the growth

and development of the businesses of Africaand the managers and people within thosebusinesses.

They need to empower their students to driveissues such as sustainable development fortheir businesses to be sustainable. They needto create an awareness of the need to havestable political and social environments, aswithout them there will be no stable andsustainable businesses, which would againnegatively impact on the economy of the

country and hence on the society.The perpetuation of this situation has the very

real potential of developing a negativereinforcing loop, equivalent to the “doomloop” defined by American academic andauthor Jim Collins.

A source of concern are signs and noises froma number of business schools that are gettingon the bandwagon of societal sustainability.

There is no argument that the issue ofsustainability is relevant and becomingmore so. Business schools in Africa should,however, understand that it is their primaryraison d’être to facilitate the empowermentof African business managers to help with thegrowth and development of those businesses.

From a managerial perspective, growing abusiness sustainably primarily requires anintensive study of business and business-related matters. There is a dire need forbusiness executives and managers to

understand strategy, marketing, leadership,finance, operations and so on so that they

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EFMD Global Focus | Volume 05 | Issue 03 2011Into Africa by Hennie Oliver and Johan Burger

ABOUT THE AUTHOR

Hennie Oliver is Associate DirectorUniversity of Stellenbosch BusinessSchool (Resources and International

Affairs), Stellenbosch, South Africa.

Johan Burger is Director: InternationalProgrammes University ofStellenbosch Business School

can apply them to the African environment.Business schools would be well advisednot to forget this in their drive to helpdealing with developing an understandingof sustainability.

A further challenge, given this point of view,is to ensure that relevant theories of thedeveloped world are applied to Africa, giventhe unique circumstances of Africa.

To assume that the customs of the developed

world are equally applicable to Africa is adangerous assumption. The continent has apopulation of approximately one billion peopledistributed over 30 million square kilometres.There are 26 official languages and 44different currencies within national borders,further diversity is introduced by triballoyalties, language differences, differentreligions and, to an increasing extent, classdifferences based on individual wealth.

Generalisations about the characteristics ofAfricans, therefore, have to be treated with

circumspection. Business schools in Africashould ensure that they are academicallyrelevant for Africa. They should encouragethe development of homegrown theories ofmanagement in the broader field of business.

A unique example of this is the models basedon the African experiences that were createdat the University of Stellenbosch BusinessSchool for Leadership and ChangeManagement by using the theory ofthe developed world. An example is thedevelopment of the VISA leadership model

and the Beehive Change Management Modelby South African leadership guru, Christo Nel.

Another example of the uniqueness of Africancircumstances is the introduction anddevelopment of mobile-based infrastructureby MTN, Vodacom and Telkom to makecommunication and financial transactionsin Africa more accessible.

Business schools in Africa should be focusingon their relevance in a continent yearning forthe relevant and applicable development of itspeople.

Taking into account the enormous expectedpopulation growth to 3.5 billion in the year2100, they will not be able to do this on theirown. The co-operation of all relevant role-players and joint ventures with the developedworld and emerging economies will haveto be exploited to fulfil the challengesin developing the managerial andentrepreneurial skills of the peopleof the African continent.

Business schools in the world that are lookingfor new ventures and to contribute to

meaningful economic and societaldevelopment and have a willingness toadapt their education to a new developingenvironment will experience friendlyreceptions to meaningful partnerships.

Africa needs the world just as the worldneeds Africa.

30The continent of Africa hasa population of one billionspread over 30 million square

kilometres

26There are 26 official languagesand 44 currencies

EFMD AFRICA CONFERENCE

The University of Stellenbosch Business Scool will hostthe EFMD Africa Conference, 1-3 November 2011.

For information please visit: www.efmd.org

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37EFMD Global Focus | Volume 05 | Issue 03 2011 Will so cial n etworkin g kill the r adio st ar thi s tim e? by Mark T homas a nd Mat t Symon ds

Students will go on to talk about the reason

they wanted to study in a particular country

or city (Place) and the overall cost (Price).

For many students the choice of institution

it is still a family decision and even things

as mundane as brochures and fairs can

persuade some. This is the Promotion part.If this sounds shockingly like the 4Ps we

should not forget that there is a reason

that they are called fundamentals; they

are just that.

A decision as important as to where to obtain

a qualification to enhance your career

prospects should be based on such rational

elements. It should not be based on the latest

communication technique.

Once these elements have been taken into

consideration by the students then there is

still a lot of hard work to be done by the

school. Most people still want to be convinced

and this can only be done with a meaningful

interaction with someone who can answer

your questions.

This could mean responding to questions on

Facebook. Indeed, it would make a welcome

change from a lot of the corporate messages

that are currently being put out.

It may also mean doing the traditional thingssuch as going to fairs or calling people up.

Evidence suggests that the schools that have

not forgotten this sober fact are the ones that

are outperforming their peers.

Social networks might help convey the

message but they do not change the basics

of what a business school has to do to attract

students.

As they evolve and business schools try to

communicate efficiently with their students,

they should not forget their fundamentalposition in society as providers of a thoughtful,

meaningful analysis of the world.

Students will be delighted to see that

professors are up to date on the latest

technology and can have a bit of fun. But they

will still expect them to provide individual

answers to their own questions and to give

them a solid return on their heavy investment

in the form of an excellent preparation for the

business world and good career opportunities

when they leave. It is difficult to do this ifyou are limited to 140 characters.

72% We are told that the lastthing that 72% of young people do today beforegoing to sleep is to consulttheir social media networks

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YESMatt Symonds puts the case for:

RT @EFMDnews: #Social media broadensdialogue between #b-schools & students.Rewards innovative outreach in aconversation the school does not alwayscontrol

OK that fits. But I did not add a link or mentionthat the likes of Facebook and YouTube helpto reach a wider audience and, if done well,can transform school recruitment intosomething targeted, memorable and shared.

For me this is not a debate about thereaction in the academic world - it is aboutreaction in the world of potential applicants.

It is not if you do social media, the questionis how well you do it. And current results inbusiness education are mixed. As part of aconsultancy project, MBA50.com compiledlinks to the primary social media output of50 of the world's top business schools.Though they all had a Twitter, LinkedIn andFacebook presence, levels of content and

activity varied from daily interaction withengaging content to hesitancy and neglect.

One in five schools had no traceable blogoutput, though tellingly their students oftendid. North America schools are more presenton YouTube and iTunes but there is a vastdisparity between those with committedvideo and podcast channels that organiselectures and interviews by theme, and thosewho have simply posted a promotional video.

And all too often the links to these activities

are buried within the institutional website.As the founder of the World MBA Tour 16 yearsago, I am the first to say that it is prematureto abandon the idea of a marketing mix.Face-to-face contact or a voice on the endof the telephone have their place. I’m the first to say it is

premature to abandon the ideaof a marketing mix – face-to-

face contact or a voice on the endof the telephone have their place

96%96% of the Millennials thatmake up a business school pipeline of students have joined a social network, and...

78%...78% of consumers trust peer recommendationscompared to 14% that trust

institutional advertising

I would not be surprised if 16 years from nowsocial media has morphed into something

else, eating up bandwidth and redefiningmarketing strategies. But if 96% of theMillennials that make up a business schoolpipeline of students have joined a socialnetwork, and 78% of consumers trust peerrecommendations compared to 14% thattrust institutional advertising, it is time toallocate a significant portion of a businessschool's marketing budget to online activity.

And I do not mean Google ads. Much of theinvestment in social media will be measuredin staff hours and smart communication. If

professors complain about students tweetingin the classroom, maybe we should be givingthem something to tweet about.

Why not gather the Twitter addresses of the65 students in the amphitheatre and sendthem key messages relevant to the course atintervals through or after the lecture. Get themessage right and you will see how manythen retweet or share with their Facebookfriends.

Such ideas require time, thought and willing

co-ordination but the results can be measuredin student engagement, levels of satisfactionand referrals to peers.

For schools fretting about the ROI ofinternational recruitment fairs, or the costper lead of a half-page ad in the Financial

Times, it is time to weigh them against thecost and return of lead-generation throughsocial media to a targeted peer network.

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Twitter is not so much aboutwords of wisdom in 140characters – it is about engagingan audience, providing themwith information, a call to action

Though I began by stating that social mediais a conversation that we do not always

control, we can certainly give these “digitalnatives” interesting things to talk about.

Faculty and alumni are a business school'sgreatest ambassadors but all too often theyare a well-kept secret. Blogs and professionalnetworks capture the student experienceand post-MBA career success while iTunesU provides a platform for expertise andtestimony.

The video and podcast download numbersfor HEC Paris and MIT-Sloan confirm that

there is a significant audience for thoughtfuland engaging audiovisual content.

In any case, while you read this article over900 hours of video will be uploaded toYouTube, some of it from your competitors.

The media are watching us too. Anoverwhelming majority of reportersand editors now depend on social mediasources when researching their stories,including 89% using blogs for storyresearch and 65% using sites such asFacebook and LinkedIn. If you are proudof your accreditation, thoughtful teaching,ROI and post-MBA career opportunities,let the world know in the places they aregathering their information.

Suggesting that the decision to do an MBAis based on the latest communicationtechniques is missing the point – the latestcommunication techniques should be givingapplicants the information they need to makethe right decision for them.

The “social” aspect of social media also gives

you the chance to connect them with studentsand alumni of the same sex, nationality orsimilar professional background.

ABOUT THE AUTHOR

Mark Thomas is Associate Dean andDirector of International Affairs andProfessor of Strategic Managementat Grenoble Ecole de Management,France.

Matt Symonds is a writer onmanagement education issues and aconsultant to business schools. Hefounded the World MBA Tour in 1995(and uttered his first tweet 14 years later.)

Will so cial n etworkin g kill the r adio st ar thi s tim e? by Mark T homas a nd Mat t Symon ds

89% An overwhelming majorityof reporters now depend onsocial media sources whenresearching their stories,including 89% using blogsfor story research and...

65%... 65% using sites such asFacebook and LinkedIn

Gen Y is overwhelmed with marketingmessages, so let them speak with a

peer-to-peer audience that they are morelikely to believe. If they are checking theirFacebook account before they go to bed,what do you have to say to them? Or reply?This is a two-way conversation after all.

Responding to questions on online chatforums should be a priority - the personasking the question is interested enoughin the institution to ask a question or visityour site and you have the chance to providetailored information not just generalmaterial written for the institutional

website. That can be time well spentbecause the chances are that the responsefor one user will helpfully inform others.

Finally, bear in mind how much of thiscontent will accessed through iPhones andBlackberrys. So tailor the message to themedium – size really does matter. Twitter isnot so much about words of wisdom in 140characters – it is about engaging an audience,providing them with information, events ora call to action.

As The Buggles might now sing: "Takeyour own credit for your second symphony.Rewritten by machine and shared throughnew technology”.

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If companies are to benefit from their corporate responsibilityinitiatives they must actively involve their stakeholders,notably their employees, say C B Bhattacharya ,Sankar Sen and Daniel Korschun

The nextchallengefor corporate

responsibility

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45EFMD Global Focus | Volume 05 | Issue 03 2011The next challenge for corporate responsibility by C B Bhattacharya, Sankar Sen and Daniel Korschun

The bad news for managers isthat mere engagement in CR isno longer enough to differentiatea company from competitors inthe eyes of stakeholders

The low-hanging fruit of corporateresponsibility (CR) is mostly picked. Due towidespread acceptance that doing good forsocial and environmental causes can be goodbusiness, most large companies have by nowcommissioned some form of volunteeringor charitable giving initiatives, designed

sophisticated environmental sustainabilityprogrammes and purged a substantialamount of unethical practices from theirsupply chains.

The bad news for managers is that mereengagement in CR is no longer enough todifferentiate a company from competitorsin the eyes of customers, employees andother important corporate stakeholders.

The challenge today is not only to make abusiness case for CR but rather to create,

communicate and calibrate CR so that itconforms to the ever-increasing expectationsof stakeholders.

Thus, the trickier, and arguably moreinteresting, task is still ahead of us.

That task is to understand how stakeholdersview, interpret and ultimately respond to CRprogrammes. And it means we need to delveinto the psychology that drives stakeholders’relationships with companies.

In our forthcoming book (see end of article)we have integrated over a decade of researchthat sheds light on how and when CR fostersrelationships that create value for a company.We concentrate not on the direct route tovalue, whereby a company creates value by,for example, saving money through efficient

processes but rather via something we callthe stakeholder route, where a stakeholderlearns about a social or environmentalinitiative and responds accordingly.

Our approach differs from manycontemporary treatments in that it isempirically based, combining insightsgleaned from an array of lab experiments,field studies and analysis of secondary data.

The fundamental premise of our book is thatCR provides opportunities to strengthen

relationships between a company and manyof its key stakeholders. Strong company-stakeholder relationships are built upon trustand a perception that the company sharesa stakeholder’s values. Accordingly, weargue that for CR activity to generate valuefor a company it must not only reinforce thecompany’s core values, but also fulfil someof the most basic needs of its stakeholders.

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71%In a recent survey, 71% ofcompanies reported to theUN Global Compact thatCR policies and practicesare currently developed atthe CEO level

Our research shows that stakeholdersinterpret CR based on three interdependentconcepts that are in turn key leverage pointsfor executives wishing to manage CR activitiesmore effectively.

The first is a stakeholder’s Understandingof CR itself. Here the stakeholder assesseswhether CR programmes are in fact improving

societal welfare and tries to uncover whatmotivated the company to engage in CR inthe first place.

For example, in a study conducted for aFortune 500 consumer goods company, wefound that awareness of a CR programme (inthis case a gift to a child development centre)yielded significantly greater intent to purchaseits products when stakeholders attributed thegift to “genuine concern” for children on thepart of the company.

The second aspect of stakeholderinterpretation of CR is Usefulness, orthe degree to which the activities providesome form of benefit to the stakeholder.

CR may provide Usefulness in tangibleways such as energy savings from efficientappliances or in psychological ways, byenhancing self-esteem.

In a qualitative study of employees at amultinational company, we found that someemployees who live in countries where there

is considerable ill will towards the companyuse CR as a way to shield their self-esteemfrom verbal attacks. These people told us thatwhen they came across criticism from friendsor family they could point to the company’s CRas evidence of the organisation’s benevolence.

Thus, managers should not ignore CR’sability to fulfil basic stakeholder needs andstakeholders’ desire to benefit personallyfrom CR.

Understanding and Usefulness work inconcert to forge a sense that there is Unity

(the third concept) between the stakeholderand the company.

Unity – the overall sense that the company’svalues match those of the stakeholder – isthe “gateway” to the CR value that companiesseek.

Given a choice, stakeholders tend to deepenrelationships with companies with which theysense Unity and withdraw from companieswith which they have a mismatch in values.CR is a compelling signal of a company’scentral and enduring values. In support ofthis notion, in a study of over 500 front-lineemployees from across American companies

we found that Understanding and Usefulnessare capable of leading to important outcomessuch as reducing an employee’s intent to quitand becoming a loyal customer themselves,though only to the degree that they perceive asense of Unity with their employer.

Importantly, we do not view CR as yet anothercynical instrument of corporate profit. Instead,we argue that for firms to gain value fromtheir CR efforts those efforts must improvethe lives of their stakeholders in significantways. In other words, creating social value is

a prerequisite for creating business value.The first implication of our framework is thatcompanies need to eschew the notion that CRmust be enacted in a top-down way.

In a recent survey, 71% of companies reportedto the UN Global Compact that CR policiesand practices are currently developed at theCEO level. Instead, our research shows thatthe best way to improve Understanding of CRactivities, make activities maximally Usefulto stakeholders and foster Unity is to involve

stakeholders in CR activities wheneverpossible. Stakeholders want to be theenactors of CR, with the company servingmainly as an enabler and source ofaggregation of corporate resources.

The second implication from our research isthat communication needs to become moreprominent in CR planning. We find that formany companies awareness of CR, evenamong employees, is often quite low. Even atsome companies that give millions of dollarsto charity and enact major sustainability

programmes, awareness is frequently inthe low double digits.

Too many companies limit their CRcommunication to an annual report anda few electronic repositories (one employeewe spoke to said that there was information

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Martin Lockett and Matthew Gitsham contend that businessschools cannot just research and teach ‘sustainability’. They mustalso embed it in how they themselves work

Business schoolsfit for tomorrow

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49EFMD Global Focus | Volume 05 | Issue 03 2011Business schools fit for tomorrow by Martin Lockett and Matthew Gitsham

A glance at any recent issue of Global Focus reveals plentyof debate about how organisations are changing how theydo business in response to long-term trends and what thismeans for management education.

As Georg Kell and Jonas Haertle argued in the last issue (“UNGlobal Compact and Principles for Responsible ManagementEducation – the next decades” Volume 05 Issue 02 June 2011),substantial change is occurring as organisations respondto trends such as population growth, aging populations,urbanisation, poverty and human rights, public health,

climate change, biodiversity and species loss. All this comesunder the heading of “sustainability”. Leading organisationsare adapting to these changes with new products andservices, new processes and new business models, andare lobbying proactively for new rules of competition.

In business schools we are now more familiar with theimplications for us. Through research we have theopportunity to help play a positive role by helpingorganisations make sense of this changing context andthrough educational work we have the opportunity tohelp ensure leaders are fit to lead in a radically differentcontext compared to a generation ago.

A number of concerted initiatives have helped businessschools learn this: think of the Academy of Business andSociety (EABIS) or the Globally Responsible LeadershipInitiative (GRLI) or the more recently established UnitedNations Principles for Responsible Management Education(PRME). EFMD has been a key partner behind all three.

If the world is changing then business schools have noalternative but to change too. That means that we needto bring sustainability into the mainstream of researchand education – as well as to reassess our own businessmodels and make significant changes in how we work.

In this article we outline the journey that Ashridge BusinessSchool has begun in this area. While we still have a longway to go, we have achieved enough so far to offer somevaluable reflections on the nature of this change and howit really happens.

Multi-dimensional change

At Ashridge, change related to sustainabilityhas been multi-dimensional. In particular, wehave sought to combine focused initiativeswith a broader embedding of sustainabilityin activities that go under other labels.

For example, in our portfolio of programmesand other activities, we have:

Specialist offerings

Ashridge’s MSc in Sustainability andResponsibility is intended to developparticipants personally and professionally andhelp make organisations both responsible andsuccessful. It complements masters anddoctorate programmes in organisationalchange, linking to a new Centre for ActionResearch.

Focused modules on mai nstream qualifi cation programmes

In 2005 the Ashridge MBA pioneereda two-week core module on sustainable

business. This provides the opportunityto engage directly with companies,investors, policymakers and NGOsthrough class sessions and a “live case”in such organisations as Marks & Spencer,Ericsson, Skanska and Innocent Smoothies.

Subject area embedding on mainstreamqualification programmes

Complementing an “in-depth” approach,faculty are encouraged to relate theirsubject area teaching and assessmentto sustainability. Porsche’s strategy forsustainability was one challenging examquestion. This is becoming part of ourprogramme approval and review criteria.

Open programmes

A quarter of Ashridge’s portfolio of open-enrolment programmes feature sustainablebusiness. An exercise has begun to look foradditional opportunities to embed relevantnew ideas and approaches.

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Customised programmes

We encourage our tailored clients toconsider sustainability as part of theirprogrammes. Sustainability featured in 8%of our tailored programmes in 2009-2010.

Organisational consulting

Ashridge has created a dedicated consultingpractice on sustainability with recent clientsincluding KPMG, BT, Gearbulk and UKMembers of Parliament across the threemain UK political parties.

Focused research

Ashridge created a specialist centre to actas a hub for cross-faculty thought leadership(Ashridge Centre for Business andSustainability) in 1996, which formsa focus for sustainability research.

Faculty engagement

We are actively encouraging all faculty toconsider the implications of sustainabledevelopment in their research work. When welast checked, in June 2010, 25% of our facultyhad either spoken at an event or published ona theme relating to sustainable development.

Underlying this is an evolution of our businessmodel, an explicit aspect of our last strategicreview a year ago, for example:

“Location independent learning”

Ashridge is investing in interactive virtuallearning platforms and methodologies

to make our learning offer “locationindependent”, reducing the need to travel.

“Paperless” classrooms and meetings

We are exploring ways to remove paperhandouts and materials. This includes aniPad trial for MBAs, electronic distributionof meeting papers and library resources thatare primarily virtual (which in turn increasesaccessibility, especially for part-time students).

Carbon reduction

Last but not least is a focus on measuring and

managing environmental impact:

We participate in the Carbon DisclosureProject and have an energy strategy underdevelopment to reduce our carbon footprintacross Scope 1, 2 and 3 emissions by 34% by2020 and 80% by 2050.

Environmental management

We are ISO14001 certified and our reducedenergy and water use, waste managementand sourcing mean we now score 83% inthe International Association of Conference

Centres Code of Sustainability.

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What we have learned

So how has this kind of multi-dimensionalchange been possible? There have been manymotivated members of faculty and staff whohave proactively supported these efforts.But there have also been barriers.

Our organisational research shows thatchange works because of an open andinclusive process that invites motivatedindividuals to engage rather than a coerciveprocess that forces individuals to comply.Such change is slower but more enduring.It is no different in business schools.

We have seen issues of motivation and anxiety.A few faculty disagree with the whole idea ofsustainability; more do not see it as relevantto their specialism; and others see it as animportant but low priority.

Among supporters of change there has been

legitimate anxiety: Do I know enough? Whyshould I take the risk on my programme? Willmy work be recognised?

Our approach has therefore been to supportinnovators rather than seek uniform changethrough compliance.

Top-level commitment has been a furtherimportant factor, with several membersof the school’s management team vocallychampioning the need and rationale forchange. This vocal leadership creates the

space for others in the organisation to takethe risk to lead change.

Alongside support from the top there hasbeen consistent effort to connect interestedfaculty and wider staff into a relativelyinformal learning network. This includesguest speakers and sharing each others’experience of innovation. This informal workhas only been possible with more structuredsupport – recruiting and developing facultyand staff sustainability specialists anddesigning their roles to give them time

to develop and coach others.

There have been other more formalsupportive interventions: creating space torecognise and reward innovation aroundsustainability through faculty performancemanagement; introducing questions on theplace of sustainability in the curriculum intoquality assurance processes; and introducingperformance metrics on sustainability into theorganisational balanced scorecard.

We have taken a proactive approach towardsISO14001, which typically is restricted toan operational management system forenvironmental issues.

This has become a wider platform for ourbroader efforts at institutional change. Forthe past two years we have been through anannual school-wide engagement process to

review where we are on sustainability, wherewe want to be in the long term and what thatmeans for next year’s activities.

This has created a comprehensive setof around 100 objectives across theorganisation, each volunteered and agreedby individual members of staff to pursuein the following year.

Implications for accreditation and rankings

We believe accreditation and rankings havea crucial role to play in this change process,

supporting business schools engaged insustainability and challenging those who areonly taking a compliance response.

For schools where a critical mass of facultyand staff have already grasped the need forchange and have begun a journey, a strongerfocus on sustainability from EQUIS andbusiness school rankings such as theFinancial Times would play a welcome rolein helping reinforce and sustain the nascentchange already occurring.

There are clear caveats on how this should bedone. The approach needs to recognise varietyand encourage innovation rather thanprescribe a standard approach. There isno blueprint applicable to all institutions.

But, at the same time, the requirementneeds to be substantive. To take EQUIS as anexample, the current situation of sustainabilityas the last two words of the last EQUIScriterion is not sufficient to support change.

Requiring and rewarding innovation inbusiness schools that put the principles ofsustainable development at the heart of theirpurpose and overall approach is an importantrole that EQUIS, as well as other accreditationand ranking systems can and should play.

ABOUT THE AUTHORS

Martin Lockett is Director of Academic Development, Ashridge Business School.

Matthew Gitsham is Director of the Ashridge Centrefor Business and Sustainability.

25%In June 2010, 25% of our

faculty had either spoken

at an event or published

on a theme relating to

sustainable development

80% We aim to reduce our carbon

footprint 80% by 2050

83% We now achieve 83% in the

International Association

of Conference Centres

Code of Sustainability

Clockwise from left:

HCP May 2010: Part 2

Ashridge has replaced bottled water with inhouse filtered water

Seminars are now available via webinars on devices such as the iPad

HSBC managers learning aboutclimate change as part of theirleadership development

The 200 year old rain water tanksunder the terrace are still in use to

save water use

Business schools fit for tomorrow by Martin Lockett and Matthew Gitsham

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My CEO asked me to lead a globalculture change initiative. It would involvethousands of people from dozens ofcountries and would cut right throughsome old traditions, well-worn practices

and inappropriate behaviours

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53EFMD Global Focus | Volume 05 | Issue 03 2011Does the corporate world need doctorates? by David McKie

It does. Because all large corporations have issues thatneed rigorous research. By David McKie

DOES THECORPORATE WORLD NEEDDOCTORATES?

After 20 years working for one of America’s largest organisations,you get some sense of the needs and priorities of the boardroom,the business unit leader, the local finance director and the commercialteams seeking to serve their customers around the world.

My story began when the CEO asked me to lead a global culture changeinitiative. It would involve thousands of people from dozens of countriesand would cut right through some old traditions, well-worn practicesand inappropriate behaviours. An off-the-shelf solution seemed a millionmiles away, yet quickly the thought of a more rigorous process bubbled

to the surface and led to contacting business schools.The thought of a part-time doctorate crossed my mind. What is a doctorateexactly? Will a doctorate simply tell us what we already intuitively know?How will my colleagues react to the idea that I may become Dr McKie? Towhat degree will my work suffer if I disappear for weeks into a darkenedroom?

I made the decision to enrol, was accepted and then reality hit that I wasabout to start what could be the biggest challenge in my life. Conversely,it could conclude as one of my biggest achievements. Enrolling for aDoctorate of Business Administration (DBA) in 1999 introduced somestructure and rigour even though a sense of what research entailedinitially evaded me.

Unlike traditional PhD approaches, the first year of the DBA was businessissue based, which on reflection was profound.

Each of my six visits to Cranfield School of Management in Britain in thefirst year would involve discussing the real challenges of organisationalchange. I may not have fully grasped the concept of research at that stagebut I did understand the needs of the organisation and the challenges wewere facing.

The first 12-15 months of the doctorate could be compared with a roller-coaster ride with several full loops. The journey consisted of an iterativeprocess of considering the business issues in light of current research.I may have hatched a new research question almost daily but the sheerpassion to solve my business issue remained constant.

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I met some scepticism on my journey. I worked in a culture where PhDswhere associated with laboratories,not the boardroom

I overcame my first disappointment after identifying a series ofissues that would involve at least ten doctorates. I and otherscame to realise the need to focus and consider some activitiesas post-doc work. But after that 12-15 months a researchquestion was born and the doctorate was completed infour years.

Working in a global organisation required a global solution. Ifmy research focused on western leadership methods alone ora handful of countries then I suspect it would have received

little attention internally. My goal became broad and rigourous.The breadth was achieved by visiting over 20 countries duringthe research and the rigour by establishing a good partnershipwith Wharton Business School in America, which had morethan ten years of global leadership experience.

I used an existing questionnaire but in a different context andtested leadership theory cross-culturally for the first time.The research collected data from over 40 countries and thequestionnaire was translated and back-translated for a dozenlanguages.

My research took me from sitting in a kitchen drinking

herbal tea with strangers in Shanghai and talking aboutleadership to the boardroom as we considered a globalmindset and corporate values.

The chair of my panel complemented my understanding ofthe data because whatever the data was saying I could backit up with stories from all over the world, including stories ofcore-values that led people to strive for what is right, just andfair and the need to see these traits among political andcorporate leaders.

My research then took me to North Carolina to use a statisticaltool rarely used in cross-cultural social science research.

My response rate was 96% so each day I was bathing inwonderfully rich data that we had collected internally fromcolleagues. I may have spun and become dizzy in the firstmonths but once my research question remained stablethen I was on the ride of my life.

Another profound difference was the necessity to apply theresearch to our organisations. Research for research’s sakewas not acceptable at Cranfield so our presentations required

a good grasp of the business issues, research and application.As business peers we encouraged and challenged each other

by applying our business knowledge and our increasingresearch understanding.

I met some scepticism on my journey. I worked in a culturewhere PhDs where associated with laboratories, not theboardroom. It became apparent that aspects of the rigorous

approach brought value in their own right. Furthermore,application and value were seen mid-stream – we did not

need to wait until the doctorate was finalised beforeintroducing some value to the organisation.

My journey opened up doors into professional networks thatled to my making presentations, one of which was observed bya corporate customer. The sceptics in my organisation were

quickly silenced when a doctorate study was referred to in theboardroom of that customer, which in turn led to an invitationto talk about the research, especially developing a global

mindset within our global leaders.

After a major career change, I found myself back in the

academic world doing a more traditional PhD, which wasrequired to practise in my new profession. But the journey

was not as challenging nor was the same value produced.

The core components were the same, but sequenced andprioritised differently.

20The research involved visiting over 20 countriesto understand theconcept of leadership

40The research collecteddata from over 40 countriesand the questionnaire was translated and back-translated for a dozenlanguages

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ABOUT THE AUTHORS

David S McKie had a 22-year career with Cargill Incorporated in a variety of rolesaround the world. For the final ten years he was vice-president for leadershipdevelopment and organisational change. In 2008 he left Cargill to retrain as achild clinical psychologist and now works with adolescents with serious mentalhealth issues. He completed his MBA in 1994 and an Executive Doctorate (DBA)

with Cranfield School of Management in 2003.

Does the corporate world need doctorates? by David McKie

I still believe research that is business issue led is themost appropriate for practitioner research and will bringmore value for the corporate world. Both have value, butin their different fields.

The journey brought a realisation of what a business schooloffers. Since the DBA, we have opened up further avenues,including funding research, inviting colleagues to teach,employing PhD students for specific areas of research andhelping shape the agendas of corporate networks.

Does the corporate world need doctorates?

This is a question that has played on my mind for a decade.The answer is “yes and no”.

I struggle to accept that large corporations do not have issuesthat need rigorous research and it is time we all took somerisks and reconsidered how we solve problems. Businessissues arise on a daily basis and clearly not all warrant adoctorate. However, business schools have an array of toolsin their tool kit, one of which may solve the issue.

Summing up, the DBA remains one of the biggest

achievements in my life. Over 500 internal leaders benefitedfrom personal feedback on how they are performing as aglobal leader.

The journey seemed long and bumpy yet what was createdhas changed people’s lives. I believe all major corporationsshould always be involved in doctorate research as a sponsoror by releasing employees to engage in the process.Corporations and business schools need each other anda practitioner-led approach, from my experience, suggeststhere is recipe for success for both sides.

This is not about diluting the rigour but rather it is a differentapproach. Determination, patience, curiosity and tenacity arethe ingredients needed to make this partnership work.

96%My research questionnaire was getting a response rateof 96% – giving us a richsource of data

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Sherif Kamel looks at the challenges and opportunities in the MENA region and argues that investing in human capital is fundamental to socioeconomicdevelopment and growth

In the wake of economic challenges induced by recentpolitical instability, management education programmesin the Middle East and North Africa (MENA) region faceunprecedented challenges and opportunities to influencethe next generation of revolutionary business leadersand entrepreneurs.

Today, more than ever before, business schools “should build

on their role in producing and promoting the next generationof innovative and creative private-sector leaders and agentsof change focused on business and socioeconomicdevelopment and growth,” as Dr Lisa Anderson, Presidentof the American University in Cairo (AUC), has observed.

Over recent decades, oil-economics, political interests andinternational investment have contributed to the rise inprestige of management education programmes acrossthe MENA region. The benefits of global partnershipsare myriad: more diversity through international studentexchange programmes, access to better research fundingand grants, the spread of accredited programmes, and

higher-profile faculty and alumni networks.

Now, as several of the regional economies face unexpecteduncertainty, these academic institutions must utilise theirresources to prepare for the critical next phases: stabilisingfor some and reorienting agendas to address the pressingsocioeconomic and business needs for all.

The issues listed below comprise the challengesmanagement education programmes will face, both in theshort-term – recruitment and resources – and potentiallyin the long-term – reputation and relevance – as well asthe ingredients necessary for successfully capitalising on

the potential opportunities in the future.

Managingafter the

Arab Spring

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57EFMD Global Focus | Volume 05 | Issue 03 2011Managing after the Arab Spring by Sherif Kamel

Potential challenges

Recruitment

Recruitment is a big obstacle immediately facing managementeducation in the MENA region, particularly in countries moreaffected by the recent political turmoil. Any turbulence hindersthe process of recruiting not only qualified international faculty

but also international students – both necessary for a diverselearning experience. As such, leading regional businessschools will increasingly compete for top faculty and students.

Business schools in the MENA region are here to positiontomorrow’s leaders. For Egypt, a country already catering to alarge pool of local talent, pre-existing recruitment challengescoupled with the current regional uncertainty might contributeto further isolation – confining the student body and limitingthe breadth of faculty backgrounds.

Resources

Regional economies, particularly in Egypt, shrank almostimmediately following the regional uprisings that began inJanuary 2011. Consequentially, budget constrictions haveforced reallocation of resources, suspended hiring processes,driven up the costs of matriculation and relegated someprojects to the back burner – with no ultimate reprieve in sight.

Reputation

Institutional reputation is paramount for the success ofmanagement education programmes and their graduatesworldwide. Faculty, students, alumni, research and patronscollectively comprise an institution’s character and arerepresentatives of its standing. Regional programmes’reputations have benefited in the past from increased

exposure.However, as regional governmental transformations runtheir course over the next few years, it remains to be seenhow the political and economic uncertainty might createchallenges for MENA management institutions to maintainsteady reputations.

Relevance

MENA region business programmes will increasingly facedemand for focused and usable research, curricula, outreachand executive education programmes.

In Egypt, as the government and courts attempt to purge

ministries of corruption, the onus is on managementprogrammes to initiate relevant research, teaching and

Institutional reputation is paramount for the successof management education

programmes and their graduates worldwide

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extracurricular agendas – or risk becomingirrelevant in a rapidly changing business andsocioeconomic landscape.

Business ethics, transparency, innovation,human development, sustainability,entrepreneurship and leadership mustimmediately be integrated into classroomcurricula. And extracurricular activities

must engage students and faculty with thecommunity, local business and industry.Relevant engagement is crucial in thelong-term process of nation building todisseminate values such as collaborationand citizenship.

Ingredients for success

At the same time, the events of 2011 haveindirectly opened doors for MENAmanagement education programmes torealise distinctive international profiles.

Success in this endeavour is contingenton three ingredients: a focused mission,relevant course content and development,and high-quality intellectual knowledgeproduction. Once appropriately equipped, theopportunities to influence the post-uprisingMENA region abound.

Mission-driven

Most traditional management educationmodels myopically overemphasise profitgeneration at the expense of a sustainablebundle of economic, social and environmental

values. The current flux that the region isexperiencing renders such models “obsolete”.AUC School of Business’s mission promotesfostering “principled and innovative businessleaders who can make a difference”. Thisvision is embedded in teaching, research andextracurricular activities, which are carefullydesigned to yield responsible businessbehaviour that positively impacts thecommunity. To reinforce this commitmentand to emphasise promoting social wellness,the school became one of the signatories to

the Principles for Responsible ManagementEducation (PRME) and hosting PRME MENAregion forum 2-3 October 2011.

Regional focus

In the coming years, MENA institutions willneed to play an active role in educating andconsulting with new government and businessleaders; as such, management schools mustbecome better at integrating facets of publicand private sector leadership into educationaland research practices.

Yet using models and cases from Europeor America will not suffice in addressingthe specific short- and long-term challengesthe region faces. MENA leaders of tomorrowshould think and move beyond theconventional boundaries of business.

With this in mind, AUC School of Businessfounded the El-Khazindar Business Researchand Case Center in 2008 to develop casestudies relevant to the region. Locallysourced knowledge is the future of regional

management education and is fundamentalfor asserting leadership on the competitiveglobal stage.

Knowledge hubs

Management research institutions mustproduce knowledge to achieve successfulgrowth and development. Mirroring thepopular efforts in Egypt for an emancipatedpolitical identity, management educationprogrammes – particularly in MENA countrieswith diverse economies – must capitalise onlocal insight in order to maintain sovereignty

over the international decisions that affectthe region.

Furthermore, endorsing proper managementeducation that embraces the spreadinginfluence of information and communicationtechnology pays immediate dividends;principally, it demonstrates the potential fora better future led by young leaders with moreengaged and empowered roles in societaltransformation.

Management education programmes have aresponsibility to work for the democratisationof information within the MENA region, sopromoting the ability to access and contributeto a collective body of knowledge. To this end,AUC School of Business established theAccess to Knowledge for Development Center(A2K4D) in response to demands forparticipatory human expression. Areas offocus include intellectual property rights andacademic scholarship on the economic, legal,political and social issues confronting accessto knowledge in Egypt and the Arab World.

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Potential opportunities

AUC School of Business identifiesentrepreneurship, innovation, leadership andpartnerships – both in-country and acrossboundaries – as offering great possibilities forthe future of management education in Egyptand across the MENA region.

Entrepreneurship

Entrepreneurial education is a primarybuilding block for business schools seekingto identify potential entrepreneurs and tobroaden start-up cultures.

Yet, until recently, there were few suchprogrammes in the MENA region, a situationthat motivated AUC School of Business tolaunch its Entrepreneurship and InnovationProgramme (EIP) in 2010. EIP’s philosophyshifts the emphasis from “entrepreneurshipthe discipline” to “entrepreneurial thought

and action,” focusing on elements thatprovide students with a well-roundedmarketplace advantage, regardless of theircareer choice. EIP supports the creation ofan entrepreneurial educational ecosystemthat can help accelerate the growth ofstart-ups where there is never a shortage ofinnovative ideas. And it educates students tobe employees of choice or self-employable;connects students with venture capitalists,angel investors, and mentors and othersand is accelerating the growth of hundredsof entrepreneurial companies. EIP effortsare bolstered by a campus-wide student-ledEntrepreneurs’ Society (ES).

Innovation

In Egypt, the large youth population – moreglobal- and internet-savvy than theirpredecessors – demand transparency,employment and economic opportunities. Theimpact of these popular movements will bestudents who not only expect, but demand,programmes that speak to their specificskills and socioeconomic goals. MENA

management education programmes must,in turn, respond with innovative curricula andresearch centres that capitalise on steadilyimproving regional technological capacitiesand applications. Speaking at AUC this spring,Wael Fakharany, Google’s MENA regionalmanager, talked about the great potentialof e-commerce for enterprising Egyptiansin this post-uprising era. Thus coursedesign, teaching methods, faculty training,extracurricular programmes and executiveeducation must constantly innovatesymbiotically to maintain relevanceand induce new opportunities.

Leadership

The success of political change in the MENAregion is conditional; it requires an availabilityof qualified and ethically responsible leadersin the public and private sectors. Businessschools must thus concentrate on developinga new cadre of entrepreneurial leaders – onescapable of filling critical positions in local

business, government and industry and ableto successfully manage and compete in aglobal market.

Partnership

Another key avenue for opportunity in thefuture will be through strengthening localand international partnerships.

AUC, for instance, uses partnerships to fosterits mission and vision. The school partneredwith TechWadi, a Silicon Valley-basednon-profit, to establish a business incubator

that serves as a regional centre forentrepreneurial education, mentorship, ideageneration and development. A partnershipwith Egyptian venture capital firm SawariVentures created the Flat6Labs, which offerpromising entrepreneurs access to facultymentors and facilities.

Moving forward

In the face of immense changes, MENAmanagement education programmes areembarking on an era of vast uncertaintybut also immense possibility if the region

possesses an ability to anticipate how tomove forward.

Societal growth, development and globalcompetitiveness will depend on businessschools’ abilities to efficiently and effectivelyinvest in human capital and to facilitatecreativity and innovation within anentrepreneurial climate.

One thing is abundantly clear: regional youths’intellectual capacities and ceaseless ability toinnovate are the oil of the 21st century –

enterprising youth represent the future of ademocratic Egypt and a diversified MENAsocioeconomic landscape.

ABOUT THE AUTH OR

Dr Sherif Kamel is Founding Dean of the School of Businessat the American University in Cairo.

He will chair the EFMD Conference in the MENA Region,13-15 November 2011, Sheraton Casablanca Hotel & Towers,Casablanca, Morocco. For information please visit:

www.efmd.org.

Managing after the Arab Spring by Sherif Kamel

Regional youths’intellectual capacitiesand ceaseless abilityto innovate are the oilof the 21st century –

enterprising youthrepresent the futureof a democratic anda diversified MENAsocioeconomiclandscape

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Areuniversitiessociallyresponsible?

Yes they are says Marcin Geryk, whooutlines his research into how and whythey act as socially responsible neighbours

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61EFMD Global Focus | Volume 05 | Issue 03 2011 Are un iversi ties socially respon sible? by Marci n Ge ryk

Are universities simply educationalinstitutions or should they play a moresignificant role in society? Will stakeholders’growing expectations cause universities

to aim at improving their relations withtheir immediate environments? Alongwith economic development, the growingintensity of globalisation has increased theexpectations and requirements society holdstowards organisations and all public or socialand economic institutions.

Institutes of higher education, due to the rolethey play in society, have to face particularlyhigh demands. After all, they form futureelites, they participate in the process of thedevelopment of a knowledge-oriented society

and they examine our reality. This is whythe notion of the social responsibility ofuniversities is now so significant.

So far, the feeling has been that it should beonly businesses, being profit-oriented, thatshould undertake actions directed not justat their shareholders but also at their widerstakeholders. Research conducted by theauthor contradicts this shortsighted view.

Education has a preferential position in theactivity of modern societies. Universities are

expected to contribute to science throughinitiating and disseminating research. Thisis social responsibility at its fullest. Beingin possession of intellectual resources andresearch facilities, universities shouldprovide incentives for innovative actionsin their local environments.

Mature organisations are aware of the needfor social sensitivity. They are also aware thatit may serve as a way to gain a competitiveadvantage. Ethical considerations shouldconstitute an important element of the

long-term process of university management,scientific research and didactic goals.

The social responsibility of a university has

its foremost manifestation in conductingresearch that is strongly connected withthe needs of its region and in adapting itseducational offer to the needs of the local jobmarket and to the potential and aspirations ofyouth. It relies on the premise that universitiesand their stakeholders co-exist with eachother. The mutual benefits of such relationsare priceless.

The influence of a university should beancillary to its long-term goal – the releaseof social capital, ie interactions based onthe idea of co-operation taking place amongpeople within society. It will contribute to theenhancement of the position of the universityas an important and strong institution that isresponsible for the future of its society.

The research project Social Responsibility

of the University As Perceived By Its

Stakeholders was conducted between 2007and 2010. The main aim of the research wasto draw a map of social responsibility in thesector of higher education and attempt to

evaluate the influence of pro-social actions onimproving the effectiveness of management inboth the short- and long-terms. The researchwas conducted in Poland and abroad.

An analysis of stakeholders’ needs leads tothe conclusion that universities are moreand more attentive to the needs of society.The quality of relations with stakeholdersis one of the most important determinantsof social responsibility. The key issue is todevelop an effective framework for dialogueamong the three leading groups: society,

business and authorities.

The influence of a university shouldbe ancillary to its long-term goal– the release of social capital, ieinteractions based on the idea ofco-operation taking place among people within society

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The research shows, however, that pro-socialactions are not always inspired by the wish todevelop relations with stakeholders. The mainfactors motivating Polish universities toundertake pro-social actions, for example,are the desire to improve their image (87%)– and incomes (82%) – such an improvemententails. It is worth pointing out, though, that

“the sense of moral duty” also had manyresponses (74%).

According to the research results, the notionof the social responsibility of a universityis well understood. It is defined as acting inline with legal and moral standards (althoughonly 24% of the Polish adult population havecome across this notion).

Most of the respondents perceive the socialresponsibility of a university as part of itsfundamental activity, which is education andtraining. In reply to the open question – whatis social responsibility? – respondents saidthat it was a high standard of education (18%),being responsible for students, staff andsociety (8%) as well as preparing studentsfor life in society (6%).

The desire to improve the image of a universityand to develop its brand was mentioned asthe main reason for taking pro-social actions(93%).

This result is linked with increasedcompetitiveness and improving a university’s

position in the educational market (91%) plusan aspiration for better relations with thelocal community (89%). It is worth pointingout that only 74% of the respondents foundan inspiration for pro-social activity in theexample of actions taken by rival universities.

A transparent information policy is anotherissue – 92% of the Polish respondents expectthat universities will not only undertakepro-social actions but will also provide reliableinformation on them, preferably by employingindependent organisations for that purpose.

The results of the last stage of the research,conducted among university representativesfrom 46 countries, allowed a much largerperspective of social responsibility.

The notion is widely known and it isconsidered in two aspects.

The first focuses on the appropriate design ofthe educational process so that a graduate,in his or her professional career, will followthe rules of social responsibility and willundertake various non-commercial actionsfor the local community.

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63EFMD Global Focus | Volume 05 | Issue 03 2011 Are un iversi ties socially respon sible? by Marci n Ge ryk

The second aspect focuses on thesignificance of actions undertaken byuniversities themselves, which should, aboveall, offer the best education there is, preparetheir graduates for life in modern society,

educate ethical and responsible managersas well as specialists required by the jobmarket and only then act for the localcommunity on non-educational grounds.

As many as 56% of the respondents didnot notice any differences between actionstaken by state and private universities.The remaining ones pointed to the strongobligation of state universities, whichshould be involved more actively in socialdevelopment.

Respondents from non-Polish universitiesbelieve that the aim of pro-social actions isto improve their universities’ relations withtheir environments (92%), to improve theirimage (89%), to increase theircompetitiveness and improve their position inthe market (81%) as well asto fulfil their moral duty (84%). Importantly,these actions do not raise any unease amongstakeholders; they are happy to allow auniversity to use information about suchactivities for its own marketing purposes.

Taking actions for local communities wasmentioned as important for the imageof universities by 40% of respondents.It is worth pointing out, however, thatthe significance of that factor receivedthe least acknowledgement by universitiesfrom America and Canada – as few as 11%of replies. Perhaps the respondents fromthose countries prefer actions that aremore directly involved with the promotion oftheir universities. However, it must be bornein mind that even actions that seem to bedetached from the main area of universityactivity have a powerful influence on theirimage.

The representatives of North American andAsian universities placed more importanceon the role the number of courses on offerplays in developing their image. On the otherhand, European universities stressed thesignificance of the number of students andthe size of universities.

ABOUT THE AUTHOR

Dr Marcin Geryk is founder and chancellor of two businessschools in Poland: the Gdañsk Management College andthe Infrastructure and Management College in Warsaw.

93%The desire to improve

the image of a universityand to develop its brand

was mentioned as the

main reason for taking

pro-social actions (93%)

An evaluation of curricula conducted by anindependent accreditation institution hasthe most significant influence on the imageof universities, 73% of the respondents claim.The number of students is the second factor

– 46% of the responses; while the number ofcourses on offer comes third – 41%.

The most popular actions taken by theuniversities in the previous academicyear were concerned with environmentalprotection (73%).

The research confirmed the fact that thereare two commonly understood meaningsof social responsibility – the responsibilityof a university and the education of sociallyresponsible graduates. In ranking the

importance of these, support for giftedstudents comes first followed by respectfor employees’ rights, as well as protectingthe environment and important heritagesite and artefacts.

An organisation reaches its highest form ofdevelopment when its mission merges withthat of society. It leads to a situation wherethe social mission is perceived as an integralpart of the vision of the organisation’sdevelopment. It is then that a universitybecomes a truly responsible organisation

and the rules of social responsibility are fullyintegrated with its strategic goals.

The conclusion from the research is thebelief that universities integrate sociallyresponsible actions at a strategic level.University managers, in turn, must beaware not only of their responsibility fortheir relations with stakeholders but alsoof the fact that practically all people andall socio-economic entities belong to auniversity’s stakeholders.

Hence, it is appropriate to confirm thehypothesis that universities have anoverpowering impact on the shape offuture societies. Therefore this impact hasto be responsible – socially responsible.

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Organisations are desperate for effective managerial leaders.

But, asks Kevin Dalton, are leadership and managementdevelopment professionals going the right way to provide them?

DEVELOPINGTOMORROW’S

LEADERS

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65EFMD Global Focus | Volume 05 | Issue 03 2011Developing tomorrow’s leaders by Kevin Dalton

Organisations have come to realise thatmanagerial leaders are the key to unlockingtheir creative potential. As a resultdeveloping such leaders has become bigbusiness. Large corporations spend around$70 billion a year on executive education and20 billion work hours a year are devoted to it.

Even during the credit crunch, developing

managerial leaders seems to consume adisproportionate amount of developmentbudgets.

Despite this surge of interest in leadershipand management development as a vehiclefor developing the increasinglysophisticated and subtle skills needed bymanagers there is no real agreement in theprofessional community on what works andin what circumstances.

Management development remains one of

the most notoriously ill-defined concepts inmanagement. It is also the focal point for aconstant stream of fads and fashions allpromising to develop managementcapabilities.

There is a sense here of a professional areawith important ambitions yet one that isuncertain of its core knowledge andpedagogical methods. It appears preparedto experiment with any modish practice,steal any glittery idea from cognatedisciplines and try wholly untested ideas if

they might help managers raise their game.Where is the intrinsic body of research,evaluated outcomes and applied theorydriving practice that we might expect from amature learning activity?

It was frustrations of this kind thatprompted me to write a book, Leadership

and Management Development: Developing

Tomorrow’s Managers (Pearsons 2010) thatwould provide an overview of the field andcritically appraise the current state of theart - its wisdom as well as its madness.

My book attempts to distil and evaluatecurrent debates and knowledge withinleadership and management development,contextualise them within the broadersphere of management and social sciencethinking and draw on the results ofpublished research.

A recurring theme of the book is the need

for humility when attempting to developthe next generation of managementleaders.

The dilemma is that it is not easy to teachthe most important psychological qualitiesthat managerial leaders need ie: self-awareness, moral and intellectualcourage, synoptic thinking, emotionalintelligence, political insight, persuasiveskills and judgement, in short, wisdom .People need to grasp it themselves orcondemn themselves to mediocrity.

But can a guided and partnered approachto learning help the individual derivelessons from the opportunities for self-development available to him or her andremove some of the randomness oflearning by trial and error alone?

My book provides a detailed analysis of theavailable tools and processes – personaldevelopment plans, attachments, projects,action learning sets, mentoring and so on- their various strengths and weaknesses

and the organising frameworks that aremost likely to prove effective. This is theindividual’s management development.

However, there is another perspective: theorganisation’s management development.How can a company’s managementresources as a whole be marshalled toensure that the company has the rightprofile of skills, knowledge, attitudes andbehaviour for the strategic challengesfacing it in the years ahead?

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This takes us into the area of strategicstocktaking, performance management,development planning, managementsuccession and talent management. Theseinstitutional processes need to be in placefor management development to flourish.

In the book I consider both the individual’smanagement development and theorganisation’s management development interms of some key debates and themes thatmay shape management development in thefuture. Here are some of the main trends:

Management development is increasinglyaligned to a strong corporate strategy

Management development has historicallybeen accused of incoherence, with ad hoc

activities shooting off in various directions

without a strategic framework to guidethem. However, in recent years there hasbeen a shift to integrating managementdevelopment with business strategy.

Top managers are increasingly coming todefine management learning as a strategic“driver” and devoting more of their time totalent selection and development of “highpotentials”.

This recognition of managementdevelopment as an integral part of the

business plan raises its status as a functionand ensures that it registers more stronglyon the radar of line managers so that alllevels take seriously the development ofthe next generation of managers.

Management development may be in theprocess of differentiating and re-definingitself

The number of people who are employedonly as professional managers may wellbe declining due to restructuring,decentralisation, flexibility and the team-based organisation. But there may alsobe more people who are combining bits ofmanaging with practical work (such as teamleaders, professionals and semi-autonomousteams with management responsibilities).

The implication of these trends seemsto be that management development isfragmenting. At the higher end there isincreasing interest in finding sophisticatedways of developing the small elites of top

managers who have more demandingstrategic decision-making and organisation-building responsibilities than ever before.This has led to the explosion in postgraduateand specialist post-experience courses atbusiness schools and the rise of corporatepartnerships based on customised executiveprogrammes validated by universities.

At the same time, management developmenthas a role in expanding management literacyto the larger number of technicians andprofessionals who now need to know the

“ABCs of managing”. This accounts forthe massive increase in the number ofindependent organisations providingbasic skills training in management.

Because of this diffusion, managementdevelopment may be losing its separateidentity and becoming part of moregeneralised human resources developmentprogrammes.

This “democratisation” of managementdevelopment may be no bad thing if it raisesgeneral consciousness of the difficult practiceof management among larger segments ofthe labour force. But a plethora of superficial“catch up” courses and learning experiencesthat trivialise the complexities of managing,reducing it to a set of buzzwords, formulaeand slogans, will do scant justice tomanagement development as the thoughtfuland reflective discipline it should be.

A plethora of superficial

learning experiences thattrivialise the complexities ofmanaging, reducing it to a setof buzzwords, formulae andslogans, will do scant justice tomanagement development asthe thoughtful and reflectivediscipline it should be

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Upcoming events

EFMD 2011 | www.efmd.org/conferences

October 2011

2011 EFMD Conference on

Undergraduate Management

Education

DATES / VENUE

5-7 October / Budapest, Hungary

THEME

Navigating in Troubled Waters

– Is Undergraduate

Management Education Adrift?

HOST

Corvinus University of Budapest,

Hungary

Sharing Best Practice CLIP

Workshop

DATES / VENUE

7 October / Munich, Germany

THEME

The Corporate Learning

Function as a Force of

Innovation and Changes

HOST

Siemens AG

EFMD Advisory Seminar

DATES / VENUE

11 October / Brussels, Belgium

THEME

Creating an Effective Marketing &

Sales Process in Business Schools

HOST

EFMD

2011 EFMD Executive Education

Meeting

DATES / VENUE

12-14 October / Maastricht,

The Netherlands

THEME

Executive Education in a virtual

world

HOST

Maastricht University School

of Business and Economics


DATES / VENUE

14 October / Brussels, Belgium

THEME

Fostering Integrated Learning in

Degree Programmes

HOST

EFMD

November 2011

2011 EFMD Africa Conference

DATES / VENUE

1-3 November / Bellville, South

Africa

THEME

The Business School in Africa

as an Agent for Sustainable

Business and Social

Development

HOST

University of Stellenbosch

Business School

The 3rd Global Peter Drucker

Forum

DATES / VENUE

3-4 November / Vienna, Austria

THEME

Management Responsibility

and Legitimacy

HOST

Vienna

2011 EFMD Conference in the

MENA Region

DATES / VENUE

13-15 November / Casablanca,

Morroco

THEME

Challenges and Opportunities in

the New MENA Region

HOST

ESCA – Ecole de Management


DATES / VENUE

15 November / Brussels,

Belgium

THEME

What’s new in Corporate

Responsibility

and Sustainability?

HOST

EFMD


DATES / VENUE

22 November / Brussels,

Belgium

THEME

Defining a programme portfolio

aligned with the school’s

strategy and positioning

HOST

EFMD

EFMD CEIBS International

Academic Conference

DATES / VENUE

24-25 November / Brussels,

Belgium

THEME

Competition and Cooperation

between Europe and China

HOST

EFMD

2011 EFMD Masters Conference

DATES / VENUE

28-30 November /Paris, France

THEME

tbc

HOST

ESCP Europe, Paris, France

December 2011


DATES / VENUE

6 December / Brussels, Belgium

THEME

Embedding Corporate

Connections into Business

Schools Activities. An

accreditation perspective

HOST

EFMD

February 2012

2012 EFMD Meeting for Deans

& Directors General

DATES / VENUE

2-3 February / Nottingham, UK

THEME

What Deans are interested in...

HOST

Nottingham Business School,

Nottingham Trent University

2012 EFMD Entrepreneurship

Conference

DATES / VENUE

2-3 March / Maastricht, The

Netherlands

THEME

Entrepreneurial Value Creation

in Businesses, Families and

Institutions. A view from

Educators, Researchers, Policy

makers and Entrepreneurs

HOST

Maastricht University, School of

Business and Economics

7/21/2019 Volume 05 _ Issue 03 2011


volume 05 _ issue 03 2011

Documents