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INSIDE THIS ISSUE

Innovation in a jam

Bruno Chaintron why managers nd it

so hard to be different

EPAS scales up

Ulrich Hommel onhow the accreditation

system adds value

Culture club

Why David Saundersbelieves Canada can

lead the world

In the know

Emeralds DavidLamond on the new

knowledge brokers

Virtually real

Berry Beattie holdsforth on the wonders

of Second Life

Learning for

tomorrowBryce Taylor explains

Co-operative Inquiry

EFMD

www.efmd.org Volume 01_Issue 03 2007

Lorange sets sailPeter Lorange is to retire as Presidentof IMD next year. Here he talks about hislong career in management education

http://www.efmd.org/http://www.efmd.org/http://www.efmd.org/

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EFMD

International Deans Programme (IDP)In association with EFMD and the ABS

A fabulous networking

opportunity to collaborate

internationally

The role of a business school dean has become increasinglypressured and challenging in a highly competitive global

environment. This new programme is aimed at recently

appointed deans/directors of business schools which are

members of ABS and/or EFMD. It enables a group of up

to 20 international deans to visit business schools in three

countries, gaining a unique overview of strategy, operations,

structures and future markets in business and

management education.

The three compulsory modules comprise study visits to:

Module 1 Lausanne5-6 December 2007. Led by Prof. Peter Lorange at IMD

Module 2 Boston

16-18 April 2008. Hosted by Babson College, Bentley College,

Boston University, MIT Sloan School of Management

and Harvard Business School for its centenary

Module 3 Lisbon

2-3 June 2008, at Faculdade de Economia de Universidade

Nova de Lisboa, led by Prof. Jose Antonio Ferreira Machado.

Costs

14500 for members of EFMD and/or ABS

15000 for non members of EFMD and ABSExcluding accommodation and ights

For expressions of interest, please contact

Virginie Heredia-Rosa, EFMD

virginie.heredia-rosa@efmd.org

Julie Davies, ABS

jdavies@the-abs.org.uk

mailto:rosa@efmd.orgmailto:jdavies@the-abs.org.ukmailto:jdavies@the-abs.org.ukmailto:rosa@efmd.org

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EFMD Global Focus Volume 01_Issue 03 2007 In focus... page 01

Volume 01_Issue 03 2007

In focus...

Our cover story is a valedictory interview with Peter Lorange, who next year will retire

as President o IMD in Lausanne, Switzerland, afer 15 years.

By any objective measure Pro Lorange has had a phenomenally successul career in

management education on both sides o the Atlantic and internationally, though in the

latter part o his career, both at IMD and as head o the Norwegian School o Management,

it was very much in the European context. He has been a strong, consistent and much-

valued supporter o EFMD.

Although some may argue about the universal applicability o the strategy that has

made IMD so successul (see, or example, Using technology to lure executives back

to business schools by Deniz Saral on page 24 o this issue), it cannot be denied that it

has worked or IMD at least. Revenue has risen rom around 20 million in 1993 when

he took over a leader to 68 million in 2006.

In his orthcoming bookhought Leadership Meets Business: How Business Schools

Can Become More Successful(already widely circulated in draf) Pro Lorange sets out

his analysis o the challenges that currently ace business schools and the actors that can

help them respond successully. It is a compelling description and rationale o the strategy

he has ollowed at IMD, an institution that was in some difficulty when he took over.

In the final pages he gives a summary o the secrets o IMDs success. It seems appropriate

that here, in the first words o Global Focus, we provide an edited summary o Pro

Loranges (possibly?) final words on the subject:

For a business school to be successul, its strategies need to have a uniqueness about

them that creates value and competitive advantage. At IMD, the combination o our

pillars makes our strategy highly ocused and unique:

1. Real world, Real learning

2. Te global meeting place

3. All learning is lielong learning

4. Minimalist, internal structure and customer ocus process

Strategic pillars one and two reinorce each other the best o the real world, real learning

meets the global meeting place; the latest new thoughts rom research meet the best o

practice and both aculty and participants learn with and rom one another. It is a lead and

be led value creation process. Pillars three and our depend on the first two minimalism

in particular is derived rom the others , it is a precondition to be able to deliver on them.

Tus, IMDs our-pillar strategy is simple enough to be understood by most, to be

remembered, to be communicated and, perhaps important o all, to be inspirational!

Matine Plompen EditorE:martine.plompen@efmd.org

EFMD

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Contents

Volume 01_Issue 03 2007

Executive EditoMatthew Wood

Advisoy BoadEric Cornuel, Jim Herbolich,Howard Thomas (Dean ofWarwick Business School)

EditoMartine Plompen

martine.plompen@efmd.orgConsultant EditoGeorge Bickerstaffebickerstaffe@btinternet.com

Contibuting EditosBruno Chaintron, UlrichHommel, Jan Kingsley,David Lamond, DenizSaral, John Saee, GordonShenton, Bryce Taylor

Design & At DiectionJebens Designwww.jebensdesign.co.uk

Photogaphs & IllustationsJebens Design Ltd/EFMDunless otherwise stated

Editoial & AdvetisingMatthew WoodPhone: +32 2 629 0810matthew.wood@efmd.org

EFMD aisblRue Gachard 88 Bo 31050 Brussels, Belgium

www.efmd.og/globalfocus

EFMD

01 In focus...

04 alking shopInternational Deans Programme launched

RABE Workshop on Bologna Agreement

Advisory Services 2008 agenda

08 Lorange sets sail

Peter Lorange retires as President o IMD nextyear. He talks to George Bi ckerstaffe a bouthis long career in management educationand some o the secrets behind the successo one o the worlds leading business schools

14 Te role of research in business education Research has long been problematic in the world

o business education. Gordon Shenton sets outhow the EFMD EUIS accreditation systemnow tackles the issue

18 CSR: making trade work for the poor A special issue oManageme nt Deci sionbased on

the International rade Centre Executive Forum onMaking rade Work or the Poor is available reeonline to EFMD members. David Lamond explains

20 Corporate innovation: how to solvethe traffic jam problem

Why do managers claim to act rationally but in actbehave in illogical ways that stifle innovation? BrunoChaintron has an answer

24 Using technology to lure executives backto business schools

Deniz Saral argues that the introduction orexpansion o doctoral programmes or executivesand using technology-enhanced e-learning modelsto reduce their cost is one way business schools canincrease the numbers o executive participants

28 Reaching out globally Te EFMD Programme Accreditation System

(EPAS) has launched an ambitious Scale Upinitiative. Ulrich Hommel outlines the b enefits

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32 Culture club: is Canada leading the way? David Saunders, dean o ueens Business School

and EFMD board member, talks about thecustomisation o management education,multiculturalism and adapting to the iPodgeneration. Interview by George Bickerstaffe

38 Publishers as knowledge brokers?

David Lamond argues that the digital age hasundamentally changed the dissemination oscholarly knowledge and the interaction o the mainstakeholders and in particular the role o publisher

42 ime for educators to get a (Second) Life? Jan Kingsley holds a conversation with Berry Beattie,

a lecturer in leadership and organisational behaviour,who is exploring the potential o Second Lie

48 2006 EFMD Case Writing CompetitionWinners

50 Learning for tomorrow: how Co-operativeInquiry works

Co-operative Inquiry as a technique is closelyinvolved in the EFMD/UN Global LeadershipResponsibility Initiative. Br yce aylor explainswhat it is and how it can be used

56 Intercultural awareness is the keyto international business success

John Saee outlines why managers need to developinteractive skills or dealing with people rom differentcultures to be able to capitalise on burgeoninginternational markets

32

38

18

EFMD Global Focus Volume 01_Issue 03 2007 Contents pages02_03

EPASs ambitious Scale Upproject is launched page 28

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Talking shopNews and events in bief fom the business wold

EUIS Accreditation Seminar AustraliaThe rst EQUIS Accreditation Seminar will take place in Sydney on Friday 26th October

2007, hosted by the Macquarie Graduate School of Management. The seminar is

targeted at both EQUIS accredited schools that want to get a better understanding

of the EQUIS standards and criteria and those considering EQUIS accreditation for the

rst time. It will be relevant for Deans and Directors, Directors of Eternal Relations and

those responsible for accreditation within the school as well as eperienced EQUIS Peer

Reviewers. A limited number of places are available for this seminar and places will be

granted on a rst come rst served basis.

For more information, please contact:Gladys Evangelista gladys.evangelista@efmd.org

or Emma Keating emma.keating@efmd.org or telephone the EFMD Quality Services

Ofce on +32 2 629 0810 to reserve your place.

International Deans Programme (IDP) launchedIMD, Babson College, Harvard, MIT Sloan School of Management & Universidade

Nova de Lisboa will host the newly launched IDP in association with ABS. The role of

a business school dean has become increasingly pressured and challenging in a highly

competitive global environment. This new programme, beginning in December 2007,

is aimed at recently appointed deans/directors of business schools which are

members of ABS and/or EFMD. It is a fabulous networking opportunity to collaborateinternationally. The IDP enables a group of up to 20 international deans to visit

business schools in three countries. You will gain a unique overview of strategy,

operations, structures and future markets in business and management education.

The three compulsory modules comprise study visits to:

Lausanne, 5-6 December 2007, led by Prof Peter Lorange at IMD.

Boston, 16-18 April 2008, hosted by Babson College, Bentley College, Boston

University, MIT Sloan School of Management and Harvard Business School

for its centenary.

Lisbon, 2-3 June 2008, at Faculdade de Economia de Universidade Nova de

Lisboa, led by Prof Jose Antonio Ferreira Machado.

For more information please contact: Virginie Heredia-Rosa:virginie.heredia-rosa@efmd.org or Julie Davies, ABS: jdavies@the-abs.org.uk

Registration now open for the first EFMD / GMAC2007 MBA Deans and Programme DirectorsSymposium, Hong Kong7/8/9 November 2007 From Adaptation to Innovation: Learning from Asia,

A Symposium on Graduate Management Education.

Intercontinental Grand Stanford Hotel, Kowloon (Tsim Sha Tsui East), Hong Kong.

For Deans, Associate Deans, Program Deans, and Program Directors

from business schools around the world.For more information, please contact:Helke Carvalho Hernandes helke.carvalho@efmd.org

Roland Van Dierdonckjoins EFMD ualityServicesProf Roland Van Dierdonck the

former dean of the Vlerick Leuven

Gent Management School has joinedthe EFMD Quality Services team

as an Associate Director. We are

delighted to welcome Roland into

the quality services department.

His eperience and knowledge as a

Dean of an EQUIS accredited school

and active peer reviewer will be very

benecial as EQUIS continues to

set the benchmark for international

business school accreditation,

said Julio Urgel, the EQUIS Director.

Advisory Services 2008 agenda now launchedFollowing the success of the EFMD

Advisory Services Seminars in 2007

the programme for 2008 has just

been announced. Please see page 36

in this issue of Global Focus for full

details or visit

www.efmd.org/advisoryservices

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EFMD Global Focus Volume 01_Issue 03 2007 Taling shop pages04_05

SOUNDBITES

Responsible leadership and developing thenext generation o business leaders is at the

orefont o the work o EFMD and the GRLIEric Cornuel, CEO, EFMD

EFMD and the Globally Responsible Leaders Initiative(GRLI) play a leading role in developing the Principlesfor Responsible Management EducationThe Principles for Responsible Management Education (PRME) were presented

to the United Nations Secretary General, Ban Ki-moon on Thursday, July 5, 2007

at the Palais des Nations in Geneva, Switzerland.The initiative was developed by an international task force of 60 deans, university

presidents and ofcial representatives of leading business schools. It was co-

convened by the United Nations Global Compact with the active support and

guidance of EFMD, the Globally Responsible Leadership Initiative (GRLI), EABIS,

AACSB, the Aspen Institutes Business and Society Program and Net Impact.

Responsible leadership and developing the net generation of business leaders

is at the forefront of the work of EFMD and the GRLI. We welcome the principles

that have been developed in conjunction with the UN Global Compact and our

other highly respected partners and trust that they will serve as a starting point

for the management education sector, which has tremendous inuence and

societal responsibility in developing the net generation of business leaders,said Eric Cornuel, CEO of EFMD.

For more information on the GRLI visit www.globallyresponsibleleaders.net

Top (left to right):

Gerhard Van Schaik, EFMDPresident; Ban Ki-moon,United Nations SecretaryGeneral; David Saunders,Dean, Queens School ofBusiness and EFMD BoardMember

Right:

Anders Aspling, SecretaryGeneral GRLI and Deanof Vlerick Leuven GentManagement School

Online EFMDExecutive EducationDirectory launchedThe brand-new EFMD eecutive

education directory will be launched

on 14 October 2007.

The new directory is a freemembership service to EFMD

corporate and business schools

members that includes:

Proles of over 100+ executive

education providers in Europe

Over 2000 course descriptions

Data on participants prole

Practical data on courses

Full programme information

Are you trying a locate a master-class

to brush up your knowledge onleadership skills?

Would you prefer to participate in

a course with fellow senior people

having at least 15 years of eperience?

Are you looking for a programme

on entrepreneurship in Spain?

More information is available via

www.efmd.org/eed

or by contacting Patsy Van Autreve

patsy.vanautreve@efmd.org

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Talking shopNews and events in bief fom the business wold

The rle f tp tertl ccredtts speedg up

the prcesses f busess educt tertlst.

The future shape of the global higher education system

is a matter of great concern for academics, politicians and

people of business. The 46 participating countries of the

Bologna Accord have been working hard at putting into

practice the basic principles of the Declaration. The aimis to introduce a set of new standards to help universities

and business schools develop an international perspective

through teaching national students at home and abroad.

The Russian Association of Business Education (RABE)

Workshop on Russias entry into the European Higher

Education Area (EHEA) brought together in Brussels deans

and directors of top Russian business schools and eperts

from top international accrediting organisations EFMD,

AACSB, AMBA and ECBE. The Workshops took place at

EFMD Headquarters in Brussels in May 2007.

The venue and date were not chosen at random.Brussels in early May is lovely owerbeds, trees and orchards

are in full blossom, the Irises Festival in Grand Place on

Saturday attracts tourists from all over the world. But early

May is also the eve of the new academic year enrolment to

universities and business schools worldwide. It is the time

of decision making.

School-leavers are choosing universities and sending out

their application forms all over the world. Institutes and

universities are busy designing and updating their courses,

while presenting partnership programmes for validation and

accreditation. This is the time of turmoil and making a choice the crucial time for both parties to the study process.

International accreditations eperts Prof Steve Watson

(AACSB), Peter Calladine (AMBA) Prof Chris Greensted

(EFMD) and Prof Bob Jophson (ECBE) were invited to

the RABE Workshop to present their associations criteria

for quality assurance.

Russian eperts RABE President Prof Leonid Evenko,

Prof Vladimir Godin, Chairman of the RABE Board, and

Prof Sergey Mjasoedov, RABE Vice-President, spoke about

the internationalisation of business education in Russia,

which match the Bologna Accord trends in Europe. Two top

Russian diplomats from the Permanent Mission of Russia

in the European Communities, Nikolay Revenko (Deputy-

Head) and Nikolay Ivanov (Chief of the department), gave

Workshop participants details of the latest developments

in cultural and educational areas of the European Union

and presented Russias perspectives. They assessed the

changes which have been taking place in education as

highly important for Russia, since these changes willput the systems of higher education in Europe closer

to each other, make them transparent, comparable and

mutually complementing. It means that students of the

46 Bologna signatory countries will have more knowledge,

skills and competences in common. As a result they

will have equal employment opportunities in future.

The Workshop concluded with, Eric Cornuel, Director General

and CEO of the EFMD, and Natalia Evtikhieva, Director

General of RABE, signing a co-operation agreement between

EFMD and RABE, which formally acknowledged what has in

fact been in eistence for over 10 years a fruitful, mutually

enriching and strategically forward-looking partnership.

RABE Workshop on Bologna Agreement

Top (left to right):

Leonid Evenko, Eric Cornuel,Natalia Evtikhieva,Jim Herbolich

Left:

Elena Zoubkova

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EFMD Global Focus Volume 01_Issue 03 2007 pages06_07

Strategic Change

Management inthe Public Sector

AN EFMD EUROPEAN CASE BOOK

This casebook collects eleven casesfrom different public sectororganisations based in differentEuropean countries. The casesdeal with public organisations atlocal level, involving both mediumand big sized organisations.

Every case faces a different area ofinnovation: from new organisationalstructuring to new performanceevaluation systems, from improvedcustomer relation approachesto innovative public-privatepartnerships. Every managerialinnovation is presented in itsdesign and implementation phases,both evaluating nal impacts andascertaining the eplanatory driversconducive to better performances.

Different public sector organisationsare considered: local governments,public utilities, health care agenciesand mass transports.

The aim is to provide readers witha wide and heterogeneous overview.This gives readers the chance tolook at the difculties of changemanagement processes in differentscenarios; on top of it, the readerscan evaluate the impact of different

strategies to face these difculties.

The book is aimed at readers whowant to better understand strategicchange management approachesin public administration, for thosewho are interested in learning fromevidences, for trainers and professorslooking for European cases for classdiscussions, for policy makers searchingfor new ideas and change approaches.

Purchasing details

If you are interested in purchasingthis book, please contact:

Helke Carvalho Hernandes at EFMDhelke.carvalho@efmd.orgor visit www.efmd.org/publications

Contains detailed inormation about the design andimplementation phases o managerial innoations

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Loangesets sailPETER LORANGE RETIRES AS PRESIDENTOF IMD NExT YEAR. HERE HE TALKS TOGEOrGE BICkErSTAFFEABOUT HIS LONGCAREER IN MANAGEMENT EDUCATION ANDSOME OF THE SECRETS OF HIS SUCCESS

In late spring 2008 Peter Lorange, right, will retire

as President (effectively dean) of the International

Institute for Management Development IMD

in Lausanne, Switzerland a month or so short

of completing a three-term 15-year incumbency.

He is remarkably relaxed about it.

Well I dont have much choice. Te mandatory retirement

age is 65, he says. I dont see it as very dramatic.

He will be replaced by Dr John R Wells, currently Proessor

o Management Practice at Harvard Business School.

Tough Lorange will probably stay on as a aculty

member or a year it is in effect the end o a remarkably

long and distinguished career in management education.

Beore joining IMD he was president o the Norwegian

School o Management or our years and had previously

spent a decade at the Wharton School, University o

Pennsylvania, including a stint as director o its Joseph

H Lauder Institute o Management and International

Studies and other departments, ollowing eight years

teaching at the Sloan School o Management at

Te Massachusetts Institute o echnology (MI).

When Dr Lorange joined I MD on July 1 , 1993,

where as well a s President he has been the Nestl

Proessor o Strategy, the school was very differentrom the international powerhouse it is today.

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EFMD Global Focus Volume 01_Issue 03 2007 Loange sets sail: Pete Loange Inteview by George Bickerstaffe pages08_09

To be a dean now youhave to be professionalenough so that peoplewant you to be effectiveand to succeed

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113Revenue has risen from aroundSF33 million (720 million)

in 1993 to SF113 million (768million) in 2006

IMD was created in 1990 as a merger between two ex isting Swiss

management development institutes IMI in Geneva and IMEDE

on the current IMD site in Lausanne. Tough very similar IMIwas ounded by Al can Aluminium in 1 946 and IMEDE in 1957 by

Nestl SA getting their two cultures to work effectively together

had deeated Dr Loranges predecessors.

Te situation was messy, he admits. People werent pulling together.

It took two years to turn it round and his first move, a rather t ypical

combination o modesty and guile, was to ask ever y aculty member

to write down the three things they would do i they were in his shoes.

As well as signalling an inclusive and democratic approach it also,

he points out with a laugh, gave me a great database o ideas.

Since then Lorange and IMD have never really looked back. Revenue

has risen rom around SF33 million (20 million) in 1993 to SF113

million (68 million) in 2006 and building work has transormed

the old IMEDE campus on the shores o Lake Geneva.

Dr Lorange was educated at the Norwegian School o Economics

and Business and gained an MA in operations management rom

Yale University and a Doctor o Business Administration degree rom

Harvard. He is a prolific writer, not least on the subject o the governance

and management o management education institutions and the role oa business school dean, something he believes has changed considerably

during his time in the position.

He says he learned a lot rom working with Russel l Palmer [dean o

Wharton rom1983 to1990] during his time at the school. But while

Dean Palmer took a top-down viewpoint deans are not there to win

a popularity contest or to say yes to everyone according to Dr Lorange,

that has changed. Now power and influence has to be earned rom the

bottom up.

o be a dean now you have to be proessional enough so that people

want you to be effecti ve and to succeed, he says. But that doesntmean I can be wishy-washy. Tey expect me to lead. Its a very difficult

job. Te acul ty team, the whole school really, must eel that youre

working or them. You have to work ver y hard.

He has certainly had no problem with hard work. Its probably not a

well-known act but as well a s an academic ca reer that ha s included

running two leading European business schools, Dr Lorange has since

1988 also on the side, as he puts it owned and run a successul

offshore services shipping company, Ugelstads Rederi, in his native

Norway (his amil y name reflects a French Huguenot background).

In January 2007 he says he received an offer he couldnt reuseand sold the company to the Athens-based Aries shipping group

or a reported NOK730 million (92.5 million).

Dr Lorange was not involved in the search or his successor, something

he says is absolutely correct. It was handled by a six-man search

committee (three executives rom IMD partner companies and

three IMD aculty).

He was not, however, a totally disinterested observer and his latest

book, Tought Leadership Meets Business: How Business S chools Can

Become More Successful ,currently circulated to riends in draf and

due to be published later this year or next, is a pretty straightorward

account o the reasons or IMDs success and how to maintain it.

There is a huge responsibilityon both business schoolsand business to interact witheach other

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It is, he admits, aimed at my successor. I said to mysel that I have quite

a lot o knowledge and experience and why shouldnt I share that with

both the search committee and the candidates?

Dr Loranges recipe or business school success is airly simple: wherever

possible business schools should be independent, they should resist

unction-based and hierarchal aculty organisations and, particularly, the

tenure system, and they should base their teaching on relevant research

brought quickly into the classroom.

While he agrees t hat there is no one-size-fits-al l model t hat wil l make

a top business school, he argues that it is hard to think o the classic

inflexible European university model as one that w ill bring success.

So in that sense, he says, I think that, as with IMD and INSEAD, you arebetter off being independent. You can still be successul as part o a university

but only i it allows you as a business school to be speedy and flexible.

One reason or this, he say, is that in general academics avour a

discipline-oriented, axiomatic system when what is needed today

is more cross-disciplinar y, cross-axiomatic thinking. So tenure and

publishing processes that avour a discipline-oriented traditional

approach may produce a aculty profile that is not necessarily what

a school needs.

I think that happens more easi ly in university-based business schools,

he says. At IMD we dont have academic departments, we dont havetenure, and we dont have hierarchies or titles.

And, he says, though IMD has a somewhat unusual and complex system

or recruiting aculty it has less problems finding aculty than many

other schools.

In a way Im quite surprised at that, he says. I think it may be academics

themselves who are most ed up with the traditional system.

Even so, IMD has some ver y long-serving proessors. Does he think

thats a good thing?

I think so, so long as people understand that we dont have tenure. Tey

have to contribute or they will be asked to leave. S o I think its a good

EFMD Global Focus Volume 01_Issue 03 2007 Loange sets sail: Pete Loange Inteview by George Bickerstaffe pages10_11

ALLIMAGESCOURTESY:IMD

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thing that they understand they have to earn their keep every year. I

remember when I was at Wharton I had tenure and it really didnt make

any difference whether or not I did any work. I dont think thats healthy.

His latest book and his conversation are both ull o the need or what

he calls research-based executive development, with the emphasis on

research that is relevant.

Relevant to whom is a question that is simply answered:

It must be relevant rom the point o view o practice, he says. I

practice has no interest in the research thats being done, then I dont

think it has any relevance.

As he also points out, this means there is a huge responsibility on

both business schools and business to interact with each other. Andhe agrees that innovation can, effectively, only come rom business

and that business schools are always trying to c atch up.

In his latest book he argues that:

Te long-standing philosophy that good research must have a heavy

emphasis on axiomatic, disciplinary thinking, with hypothesis testing

and reutation o truth, is increasingly being replaced by a lead and

be led research philosophy. Academics, through their research, might

come up with positions that represent cutting-edge thinking. However,

it must be articulated and presented in such a way that it can be

understood by leading practitionersFor researchers this means a uniqueway to develop their research insights urther logical incrementalism,

grounded theory building.

In person he puts it more colourull y bringing hal-baked research

ideas into a classroom o experienced global executive that offers

tremendous learning opportunities or everyone.

Strategy, Dr Lorange is ond o saying, is choice. Te choice o his successor,

unlike many corporate CEOs, was not in his hands. But the strategy o

IMD, idiosyncratic to some but undeniably successul, seems set firm.

Strategy, Dr Lorange is fond ofsaying, is choice... the strategyof IMD, idiosyncratic to somebut undeniably successful,seems set rm

IMAGECOURTESY:IMD

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EFMD Global Focus Volume 01_Issue 03 2007 pages12_13

European Foundation for Management Development

and Graduate Management Admission Council

2007 MBA Deans and Pogamme DiectosSymposium

Dates7-9 November 2007

LocationIntercontinental Grand Stanford HotelKowloon (Tsim Sha Tsui East), Hong Kong

ThemeFrom Adaptation to Innovation: Learning from Asia A Symposium on Graduate Management Education

Attendees

Deans, Associate Deans and Program Directors frombusiness schools around the world

Alternative Strategies for the Internationalisationof Graduate Management Education

Social Networking and the Global Network of Learning

Technology Visions The Corporate Voice

Sustainable Leadership

B-School Partner Models

The Indian MBA Market

HR Issues and Leadership Styles in Asia

The Chinese MBA Market

EFMD

For more information, please contact Helke Carvalho Hernandes: helke.carvalho@efmd.org or visit www.efmd.org

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EFMD Global Focus Volume 01_Issue 03 2007 The ole of eseach in business education by Gordon Shenton pages14_15

Research has always been a difcult issue for business

studies. The vocational nature of these studies, the lack

of clear disciplinary boundaries and the deep-rooted

suspicion in some academic circles that the various

sub-elds are not scientically based have long been

handicaps. It has never been easy to nd a consensus

on how research should be dened or on what should

be considered acceptable research output.

Te need to prove that business studies are a serious academic discipline

has pushed the proession towards over-investment in research aimedessentially at other academics through publication in reereed academic

journals, laying business schools open to criticisms that they are producing

mountains o obscure and irrelevant research. Tis is particularly true in

America where the tenure and promotion system is based essential ly on

academic publication though a similar drif has probably been occurring

in Europe.

On the other hand, there is a recognition that research must serve other

purposes and other constituencies, that it must, in some more direct way,

be useul to students, companies and managers though this carries with it

the risk that it may be deemed unworthy o academic consideration. Tedebate has recently crystallised around the spurious opposition between

rigour and relevance.

Tis long-standing debate within the management education

proession on the role o research in business schools has, thereore,

always been a particularly thorny issue or accreditation bodies. In

the definition o their expectations, in the ormulation o their criteria

and in the way in which assessments are carried out in practice they

will inevitably in fluence the behaviour o business sch ools. Tey must

be seen to stand behind the principle that the quality o a schools

teaching staff is linked to the qualit y o their intellectual activity.

However, they must avoid the pitall o defining research too narrowly

and thereby sending out the message that only publication in academic

journal s wil l be seen as serious research.

Given this state o affairs, it is particularly significant that both EFMD

and AACSB International have recently taken strong positions on the

role and nature o research in business education in an attempt to clariy

the debate or the schools they evaluate. A draf report o the AACSB

International Impact o Research task orce is currently being circulated

or comments. I the recommendations put orw ard by the task orce

receive sufficient approval, they wil l presumably be written into the

accreditation standards.

Earlier this year, official approval was given to the new EUIS

Standards and Criteria document afer almost two years o d iscussion

within the membership. Te chap ter on research is the result o

extensive revision and now stands as a major statement o the EUIS

approach to this activity.

In addition to its primary unction as a ramework or assessing

research in the accreditation process, the chapter is also intended

to provide more general guidance to business schools in defining

their strategy in this area. It can be seen as an EFMD position paper

on research in business education.Given the dominance o the academic model in America, AACSB

has perhaps a more difficult task to convince business academia that

there is a need or a broader definition o research and a shif rom the

measurement o output to the measurement o impact.

However, EUIS shares the same concern in Europe and the rest o

the world, although the context is substantially different. Tere is greater

diversity among university systems across the 40-plus countries o the

European continent.

For example, many o Europes best-ranked business schools are not

ormally within the university system and are ar more market oriented;

A university business schoolwill probably place greater

emphasis on academicresearch while an independentbusiness school serving acorporate market will mostlikely seek professionalrelevance in its research effort

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the tenure system is not always so constraining; and language barriers in many cases

make it impossible or aculty members to publish in the so-called top international

journal s, whic h are mostl y Americ an.

Nonetheless, European institutions are eeling the same pressure to conorm to the

academic model and need reassuring that the accreditation bodies do not expect

them all to behave li ke research-driven US business schools.

Te principle that research should have an impact is firmly written into the EUISStandard at the beginning o the chapter on research:

he School should regularly produce original contributions to knowledge that are effectively

disseminated. hese should demonstrably make an impact on one or more constituencies

that are strategically important for the successful development of the School: academic peers,

management professionals, students, etc.

Research activity itsel is classified into three categories academic research, practice-

oriented research and pedagogic development and innovation to reflect the act that

intellectual production in business schools covers a wi de spectrum o outputs and

that there is a need or broader, more flexible definitions.

It is explicitly stated that within each category output will be assessed by its impact onthe relevant constituency: the international academic community in the case o academic

research, business practitioners or practice-oriented research and educational

practitioners in pedagogical development and innovation.

Te criteria are constructed around the principle that assessment must take into

account a number o variables which, taken together in a given mix, determine any

particular schools research policy.

First, there should be clarity about the purposes o research. At the most basic level ,

it is an activity that enables aculty members to keep abreast o their discipline, to

improve their teaching and to advance in their proession. Te qualification o the

aculty as a whole depends on as many members as possible having some orm oproductive intellectual activity. Doctoral research is a means o qualiying aspiring

teachers or entry into the proession.

Another undamental requirement is that research should eed into a schools

teaching programmes. Te abilit y o a school to transorm its research activity into

renewed programme content is a key success actor in portolio management at all

levels, whether at undergraduate level or in executive education.

Next, research activity contributes to the practice o management by defining new tools

and techniques, by helping managers to improve their perormance or by broadening

their understanding o issues that affect decisions.

Research in a university environment is designed to enrich the collective body o

knowledge and understanding within the academic proession. It may be intended

to ulfil the observatory unction o critically tracking an industry, a market, an

enterprise category and so on either independently or in liaison w ith a government

agency or other organisation.

A related purpose is to allow a school to serve as a orum or public debate on issues

that are o concern to society at large.

Finally, the intellectual activity o certain aculty members may be geared towards the

creation o new instructional methods and materials or towards new course design.

Tis multiplicity o purpose is mirrored in the diversity o ormats or the disseminationo aculty members intellectual production aimed at a vari ety o d ifferent audiences:

The pursuit ofaccreditation shouldnot lead schools to setunrealistic objectives asregards their researchprole. Their resourcebase in terms of faculty

and funding may notbe sufcient to supporttheir aspirations

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EFMD Global Focus Volume 01_Issue 03 2007 The ole of eseach in business education by Gordon Shenton pages16_17

articles in academic journals, articles in practitioner journals, conerence presentations,

monographs, studies, reports, textbooks or students, books or managers, books

or other academics, chapters in books, case studies and instructional sofware.

A table at the end o the research chapter sets out accordingly a ty pology o research

and development activity, categorising the objectives o the intellectual activity, the

audience or whom its relevance must be measured and the dissemination vehicles

(articles, books, case studies and so on).

Whereas most accredited school s wil l have some productio n in al l three areas,

the main ocus or the particular mix will depend very much on the type o school,

the profile o its aculty, the unding available, the markets that it is ser ving and the

strategic choices that have been made.

A university business school w ill probably place greater emphasis on academic

research while an independent business school serv ing a corporate market will most

likely seek proessional relevance in its research effort. Whatever the mix, EUIS will

be looking or ev idence o productive intellectual activity with measurable outcomes.

Te key measures o quality in all three types o research will be the relevance and

impact on the different audiences, constituencies or stakeholders that a school is serving,as well a s its contribution to teaching qualit y. However, it should be emphasised that

a purely vocational or the exclusively practice-oriented school with a sole emphasis

on teaching will not qualiy.

Te expectation is that all schools that are accredited will be able to demonstrate

that they are productive in some areas o the intellectual activity spectrum described

above, that there are processes in place or the management and monitoring o the

research agenda and that they allo cate time and resources to support aculty members.

It is urther expected that schools will have an explicit, publicly stated strategy and

policy regarding research. At one extreme, this may only be a commitment to the

principle that research is an indivi dual concern and that it cannot be managedcentrally. But even in such cases, recruitment policy, workload allocation, evaluation

and reward processes provide a context in whic h research can prosper.

In most schools, the research effort itsel requires some planned guidance in the orm

o targeted specialisations, centrally managed research centres, an encouragement to

pursue collaborative research and so on. Tis is particularly true o the many schools

around the world that are currently striving to upgrade their research potential, ofen

rom a situation in which research was given a low priorit y.

However, a word o caution is in order: the pursuit o accreditation should not lead

schools to set unrealistic objectives as regards their research profile. Teir resource

base in terms o aculty and unding may not be sufficient to support their aspirations.

It is encouraging that EFMD and AACSB International, rom their different

perspectives, are seeking a more balanced approach to the assessment o research in

business schools. Te emphasis on relevance and impact coming rom both sides o

the Atlantic and the common desire to bring research closer to practice are strong

messages or the management education proession.

ABOUT THE AUTHOrGordon Shenton is Associate Director, EFMD Quality Services Department

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Crprte Scl Respsblty

Making tradework for the poor

Whether the discussions are rooted

in philosophical, legal, political

or geopolitical origins, companies

and communities alike are paying

increasing attention to the idea of

corporate social responsibility (CSR).

On both sides o the Atlantic, companies are

seeking to integrate social and environmental

concerns into their business operations, investing

more in their people, the environment and their

relations with stakeholders.

At the World Economic Forum in January

1999, the then Secretary-General o the

United Nations, Kofi Annan, challenged

business leaders to join the Global Compact

an international initiative to promote

responsible corporate citizenship so that

business can be part o the solution to the

challenges o globalisation in the areas o

human rights, l abour, the environment and

anti-corruption and create a more sustainableand inclusive global economy.

One o the more well-known examples on

the company side is Nike, which makes sports

ootwear and clothing. Inamous in the

1990s or the third-world sweatshops o

its overseas suppliers, Nike is now exercising

its corporate social responsibilities. It has

developed a g lobal corporate responsibility

strategy that includes improving working

conditions in its contract actories through

a holistic, integrated business approach to

our supply chain. Now Nike has been named

number 69 in the2007 Fortune 100 Best

Companies to Work Forlist, moving up 31

places rom 2006. Yet, despite the efforts

o companies such as Nike and others, along

with the work o the UN and EU, the pligh t

o the worlds poor is no less stark.

In his preace to the 2006 United Nations

World Economi c and So cial Survey, Mr

Annan observed: Our world is richer than

ever beore, but it is also marked by enormousinequalities, both within and between

countries. Te average annual income o

someone living in the worlds richest countr y,

Luxembourg, is more than one hundred times

larger than that o the average citizen o Sierra

Leone, one o the worlds poorest. Such big

differences in living standards should

be a matter o great concern

because they reflect serious inequalities in lie

opportunities. Tis calls or a robust policy

response at both the national and international

levels, so that all countries can achieve the

Millennium Development Goals and other

agreed development objectives.

As part o its response to this challenge,

the International rade Centre (IC) held

an Executive Forum on Making rade Work

or the Poor, in Berlin in September 2006.

Emerald Group Publishing, in conjunctionwith IC and UNC AD/WO, decided

to publish a special issue oManageme nt

Decisionusing selected papers rom

the 2006 Executive Forum,

A SPECIAL ISSUE OF MANAGEMENT DECISIONON THE INTERNATIONALTRADE CENTRE ExECUTIVE FORUM ON MAKING TRADE WORK FOR THEPOOR IS AVAILABLE ONLINE TO EFMD MEMBERS. DaviD LamonDExPLAINS

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EFMD Global Focus Volume 01_Issue 03 2007 Maing tade wo fo the poo by David Lamond pages18_19

aLLEviaTinG PovERTY THRoUGH TRaDE

GUEST EDITORS

Dr David Lamond

and Dr Rocky Dwyer

FOREWORD

Eric Cornuel

Director General EFMD

MAKING TRADE WORK FOR THE POOR

Patricia R Francis

Executive Director

International Trade Centre

EDITORIAL

Corporate social responsibility:

making trade work for the poor

David Lamond

aRTiCLES

Managing the linkage between export development and poverty reduction:

An effective framework

Frederick Owen Skae, Brian Barclay

The Great Game evolves for Central Asia and opportunities beckon

John Kidd

Is South-South trade the answer to alleviating poverty?

Osvaldo R Agatiello

The South African poor white problem in the early twentieth century:

Lessons for poverty today

Johan Fourie

Company and society: The Caras do Brasil (Faces of Brazil) program as

leverage for sustainable development

Luciano Barin Cruz, Eugenio Avila Pedrozo,

Rosangela Bacima, Beatriz Queiroz

Trade from the ground up: A case study of a grass roots NGO using

agricultural programs to generate economic viability in developing

countries

Allison Duke, Charla Long

Transaction costs in group microcredit in India

Savita Shankar

Alleviating poverty: how do we know the scope of the problem and when

we have solved it?

Rocky J Dwyer

The elephant in the room: gender and export-led poverty reduction Astrid

Ruiz Thierry

REaD iT

EFMD members have free access to this journal via the following web address:

www.efmd.org/journals

ManagementDecision

AlleviatingpovertythroughtradeGuest Editors:DrDavidLamond andDrRockyDwyer

Volume 45 Number8 2007

ISSN 0025-1747

www.emeraldinsight.com

_ / /

ABOUT THE AUTHOr

Dr David Lamond, Foundation Dean and Professor,

International Business School Kochi, IndiaEmail:daplamond@gmail.com

together with a limited number o papers submitted

independen tly or consideration. Tis special issue was

launched at the recent Academy o Management meeting

in Philadelphia and Emerald has agreed with EFMD

to provide special electronic access to the issue or

EFMD members.

ogether, the papers in this special issue constitute a

useul starting point or the exploration o the role that

corporations can play in sustainable utures or all o us.

We hope that we have m ade some small con tributio n

towards making trade work or the poor.

100The number of times largerthe average annual income

of someone living inLuxembourg is of thatof the average citizenof Sierra Leone

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CopoateinnovationHow to solve thetrafc jam problem

WHY DO MANAGERS CLAIM TO ACT RATIONALLYBUT IN FACT BEHAVE IN ILLOGICAL WAYS THAT STIFLEINNOVATION? BrUNO CHAINTrONHAS AN ANSWER

In a recent article in Global Focus, Richard Straub, the EFMD

Director of Development, quoted a survey conducted by the

IBM Institute for Business Value demonstrating that CEOs

see innovation as the top requirement for their companies

to compete in fast-changing global markets. He advocated

that further work should be carried out to integrate innovationinto management practices and not simply into products.

Why is real management innovation so difficult to achieve? What would

it take or managers to act as entrepreneurs? Despite numerous inroads,

academic literature has not yet been able to identiy any individual

psychological attributes that would help predict entrepreneurial success.

Yet intuition says that psychology does matter or innovation. But how?

Lets take a real-lie example.

Everyday when I drive downhill rom Meudon, the suburb west o Paris

where I live, to my office, I have to get through the Carreour de la Ferme

crossroads and every morning it is congested. One day I was waiting atthe last traffic light beore the crossroads and it wasnt looking good.

Some cars were already blocking the intersection. As the traffic li ght

finally turned green, the car in ront o me suddenly accelerated, rushed

a ew metres and quickly stopped stuck with all the other vehicles

at the centre o the crossroads.

Does this ring a bell? In traffic jams, when the light turns green, why do people

rush orward even though cars are blocking the intersection? Isnt it obvious

that this will only make the problem worse? Why do we always have to

put ourselves in even more inextricable situations? Why dont we learn

rom the past to discover better solutions? In short, why are our innovation

capabilities so limited we havent yet solved the traffic jam problem?

A ew months later, I was driving a car in Caliornia. I was approaching

a crossroads where the traffic lights were not unctioning. My old French

instinct resuraced. Would the nightmare start again? o my great surprise,

the traffic was flowing smoothly. Why?

It took me a ew seconds to realise that every driver was a) able to remember

his or her arrival order at the crossroads and b) was very careul to only

enter the crossroads son tou r.

In other words, the lights werent really needed. And two skil ls had made

this miracle possible: a knowledge-acquisition skill (everybody was able

to remember his or her arrival order at the crossroads) and a relationship

skill (nobody was cheating).

Could this possibly be the beginning o a solution to the traffic jam problem?

A ew days later I was back in Meudon meditating in my usual morning

jam. As I w as expecting, the intersection a head o me was bl ocked. But

surprisingly I was eeling no rustration. Te lig ht turned greenand

an idea struck me. It sounded crazy but what about quietly waiting a

ew minutes at the green light without entering the crossroads, even

though its my turn to allow time or the traffic to flow? Wouldnt this

be a much better deal or all the cars blocked in both streets? Imagine

how many minutes, perhaps hours, dozens o drivers would gain, just

because one car would be ready to spend two minutes at a green light.

Te whole world was now looking different. I knew this wasnt just utopia.

Tere was indeed a theoretical solution to the traffic jam problem: just

deciding to wait two minutes at a green light regardless o what all the other

cars were doing. So I reormulated my old question.

Why do we repeat the same behav iours that prevent us rom adopting

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EFMD Global Focus Volume 01_Issue 03 2007 Copoate innovation by Bruno Chaintron pages20_21

Why dont we learnfrom the past to

discover bettersolutions? In short,why are our innovationcapabilities so limitedwe havent yet solvedthe trafc jam problem?

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more efficient innovations? Why do we repeatedly rush when the light

turns green? Why dont we discover the two minutes at the green l ight

solution? And why dont we implement it? Te intuition was growing

that answering those last two questions would open new perspectives

on corporate innovation.

But lets take a step back. Why does corporate lie resemble a traffic

jam? Since most mana gers cl aim they have a rational approach to

decision making, rushing and bumping should never be managerialbehaviours. Tose managers argue they live by the CAD decision

model. In other words, they collect inormation,analyseit and decidebased

upon it. Why dont they always get what they want then? Why do they

sometimes lose market share and get fired? Why, like drivers entering a

busy crossroads, are they surprised by the consequences o their own actions?

Simply because, ar rom resembling the CAD model, the decision-

making model used by managers is much closer to IJR ignoring/

judging /reacting. Am I exaggerating? Car drivers ignorehow to get out

o the traffic jam and tension grows. At some point when the light

turns green and emotions are at a peak theyjudgethat now its theirturn and they reactby rushing into the bottleneck.

Exactly the same thing happens to managers. All managers ignorethe

deep, systemic causes o complex business situations, as well as the real

consequences o the solutions that come to their mind,judgethat they

have the best solution and reactwith decisions that are limited by

their preconceived judgements. Underneath the CAD mountain lies

the IJR iceberg (Diagram 1, right).

IJR is consubstantial to our limited rationality. And theres something

good about that. However imperect our judgements may be, they are

useul: they stop the analysis so that immediate action becomes possible.In the short term, IJR makes CAD easier. But what happens in the longer

term? I would suggest that IJR sequences make innovation more difficult.

Lets take a real-lie example. A manager comes to his or her CEO

with a pl an to launch a revolut ionar y environmen t-riend ly packaging

material based on popcorn. Te manager is a creative and charming

person though with a reputation o being a little bit o a dreamer.

Tink o the CEOs situation. He ignoresthe business potential o the

idea and lacks the time to investigate it. But he still has tojudgewhether

he will allocate a development budget. Isnt it tempting or him to

judgethat such a naive manager would never be able to come up witha marketable innovation and to reactby stopping the project ? See how

easily one single IJR sequence can kill an innovation opportunity.

I IJR sequences can ultimately kill innovation, how does the chemistry

o ignorance, judgments and reactions interact with innovation

opportunities over time? It all depends on the type o IJR sequence we are

dealing with. Tere are at least two reasons why we, as managers, do not

reach the results we have been dreaming o. Te first reason is our limited

rationality: we dont have the knowledge to do what we should do to get

what we want. Lets call it aKnowledge Gap, the gap between our actual

behaviour and the behaviour that would have better served our stated

objectives but which our limited rationality prevents us rom adopting.

Knowledge Gaps

Why do Knowledge Gaps matter in our dail y lives? Tink o the

crossroads again. Te drivers dont know the two minutes at the greenlight solution but they want to get through as quickly as possible.

Tey behave in a way that makes the jam worse and d iminishes their

chances o reaching their objectives.

Why do Knowledge Gaps also matter or corporate innovatio n? Lets

take the example o the Innovation Division o a large service group

that decided to build centralised unctional directions to reduce costs.

Te management ignoredthe act that the combination o strong

central support unctions w ith many transversal innovation projects

would create a ver y complex co-ordinati on process. Teyjudgedthat

these centralised support unctions should be implemented to savecosts, and they reactedby implementing a ver y slow and bureaucratic

system. Because the management lacked a number o organisational

behaviour skills, they became trapped in a Knowledge Gap

that diminished the innovation potential o their organisation.

Knowledge Gaps are a consequence o IJR. We ignoreall the possible

solutions to our problem as well a s the way to determine the best one.

But we must stilljudgeat some point that our solution is the best and

we react based on this judgment. Since our rati onalit y is structurall y

limited, Knowledge Gaps are unavoidable. Tereore they are present

in all organisations, including the best-perorming ones. Knowledge

Gaps are involuntary and they can be reduced by raising the education

level o managers.

Relationship Gaps

Tere is also another reason why we ofen do not reach the new

situation we have been aiming or: power games. Because o them

we think we dont have the reedom to do w hat we shoul d do to get

what we w ant to get. Lets call it aRelat ionship Gap, the gap between

the behaviour finally chosen and the behaviour identified in the first

instance that we think would have better served our initial objectives

but that some power games prevented us rom implementing.

Our dayto-day lives are ull o Relationship Gaps. Tink o the crossroads

Why does corporate liferesemble a trafc jam? Sincemost managers claim theyhave a rational approachto decision making, rushingand bumping should neverbe managerial behaviours

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EFMD Global Focus Volume 01_Issue 03 2007 Corporate innovation by Bruno Chaintron pages22_23

again. Imagine that you are an educated driver, ully aware o t he two minutes at

the green light solut ion. Would you implement it? I you stop at the green lig ht,

cars behind you may start honking their horns. Do you think t hat one o those

drivers will be so impatient that he will overtake you and take your place in the queue?

Should you really wait at the green light i others overtake you? Your idea o ot her

peoples reactions might create a Relationship Gap and prevent you rom implementing

an innovative solution.

How do Relationship Gaps also hinder corporate innovation? Lets take the example omanagers o large bureaucratic organisations that are given the objective o rejuvenating

their businesses but dont have the resources to do so bec ause they also h ave to

simultaneously clean up the existing mess.

Why is it so difficult or the management o l arge bu reaucrati c organisations to

discontinue non-perorming offerings? Because they may ignorewhether key people

within and ou tside the organisat ion would supp ort the discontinuation, mayjudge

that the politi cal risks o a discontinuation are too high and may reactby delaying

innovative reorms.

Like Knowledge Gaps, Relationship Gaps also come rom IJR. As decision makers we

ignoreall the people potentially impacted by our actions as well as their likely reactions.We must stilljudgeat some point that since those people are like thatit is likely that they

will We then react based on this preconceived judgment. Since human behaviours are

largely unpredictable, Relationship Gaps are present everywhere in our organisations, again

including the best-perorming ones. One way to diminish them is to encourage a trust

culture that makes it easier or people to share their objectives.

As evidenced by the traffic jam example, Knowledge Gaps prevent us rom imagining

innovative solutions and Relationship Gaps prevent us rom implementing them.

Knowledge Gaps can also lead to the creation o Relationship Gaps. I dont know what

my colleague was doing in t he office o my boss but he is the kind o person that was

surely spoiling my lie. Te reverse is also true. Relationship Gaps (Why is this person

smiling? I cant trust her.) can lead to the creation o Knowledg e Gaps (I decide to

keep all the inormation or mysel.) In this example, a lady will be missing a key piece

o inormation to solve a critical issue and a learning opportunity will b e wasted.

Innovation roller coaster

In short, managers ride the innovation process like a roller coaster, through the ups

and downs o Knowledge and Relationship Gaps (Diagram 2, lef).

Knowledge and Relationship Gaps interere with corp orate innovation processes.

Since managers are requently unaware o them, I call th em glass walls. Tey are based

upon the same DNA structure, described here as IJRs. IJRs helps organisations adapt

in the short term. But in the long term, the chain reactions o I JR-based Knowledge

and Relationship Gaps can trap organisations into vicious circles that prevent them

rom urther innovating.

On a practical level, innovation development programmes can help. Tese programmes

should have a knowledge and also a relationship content. ruly helping organisations

oster innovation means helping individuals better understand how they ignore, judge

and react.

Te answer is probably specific to each individual and contingent upon the set o

circumstances he or she is acing. It is even possible that this might ol low patterns.

Each o us would thereore be inclined to ignore, judge and react according to precise

and recurrent patterns that we would reproduce in similar relationships. Understanding

those should be crucial or developing the innovation potential o companies.

INNOVATION ROLLERCOAST

JudgingMy idea is the best... !

JudgingWith these kind ofpeople, I should... !

IgnoringThe consequence

of the solutionenvisaged

Reacting IgnoringOther peoples

reactions

Reacting

UNCERTAINTY KNOWLEDGE

GAP

RELATIONSHIP

GAP

IJR ICEBERG

Analysing information

Collectinginformation

Ignoring

Judging

Deciding

Reacting

Above:

Diagram 1 IJR Iceberg (G4 2007)

Below:

Diagram 2 Knowledge and Relationship Gaps (G4 2007)

ABOUT THE AUTHOR

Bruno Chaintron is Director of International Development,La Poste International Mail Activities. This article summarisesimportant points developed in his book Coaching pour changeravec plaisir (Eyrolles publishing, 2007).

Email: bruno.chaintron@alumni.insead.edu

Diagram 1

Diagram 2

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Business schools have always competed with industry to

attract talent to their PhD programmes. In areas such as

accounting and nance, industry often won. In traditional

areas, such as economics, the reverse was true.

However, since the late 1990s industr y has been extremely successul

in diverting talent rom business schools in all areas. Tis lack o abil ity

to compete with industry has become so acute recently that a good

number o American business schools have had to terminate their PhD

programmes. Hence the raison dtrein August 2002 or the landmark

report,Manageme nt Educat ion at R isk, by AACSB Internationals

Management Education ask Force (MEF), which identified and

prioritised the most pressing issues acing management education.

Various reasons have been advanced to expl ain why there is a shortage

o PhD candidates knocking on business school doors: PhD programmestake too long (three to five years); are not flexible (ull-time attendance

DENIz SArALARGUES THAT THE INTRODUCTION OR ExPANSION OF DOCTORALPROGRAMMES FOR ExECUTIVES AND USING TECHNOLOGY-ENHANCEDE-LEARNING MODELS TO REDUCE THEIR COST IS ONE WAY BUSINESSSCHOOLS CAN INCREASE THE NUMBERS OF ExECUTIVE PARTICIPANTS

Using technologyto lure eecutivesback to businessschools

The attempt to converttraditionally educatedprofessors in Europe (and inAmerica) into business schoolteachers has largely failed

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EFMD Global Focus Volume 01_Issue 03 2007 How to lue executives bac to business schools by Deniz Saral pages24_25

is required, which does not permit a candidate to work); are too costly

when the opportunit y cost to the candidate (working in in dustr y afer

an MBA degree) is taken into consideration; are too theoretical and

thus do not address the current needs o business; and still require

that knowledge is transerred rom mentor to candidate in a lowstudent-mentor ratio environment, which is a very costly process

or universities.

Te real culprit is most likely a combination o all these actors.

However, the conclusion is uniorm. Te supply o PhD candidates

has been reduced to critically low level s and business schools have to

find alternatives to increase inflows into their doctoral programmes.

What alternatives do business schools have?

Faced with high global demand rom business or well-trained managerial

talent, business schools enthusiastically increased the size o their

MBA programmes. Numerous traditional universities in Europe

joined in and energeticall y tried to convert their intern ational

economics /trade departments into business schools. Teir aculties

had already realised how ast the demand or non-business

programmes w as eroding.

Tis phenomenon resulted in a prolieration o MBA programmes

around the world, most significantly in America and Western Europe.

Intense competition ollowed. oday, even the highest-ranked business

schools have to spend heavily to recruit MBA students. Tey have had

to go ar afield and expand their offer across continents.

Recently, or example, INSEAD orged a strategic alliance in Saudi

Arabia and the London Business School completed a similar deal in

the United Arab Emirates.

IMD, based in Lausanne, Switzerland, the other school in the top three

in Europe, has so ar appeared to resist this temptation. Tis is largely

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due to IMD President (Dean) Peter Loranges strategic model [see page 8 or an

interview with Lorange], which requires that i a candidate wants to earn an IMD

MBA, he or she must spend a year ull-time in Lausanne. IMDs Executive MBA

programme has a similar requirement, that is, all candidates must be ready to spend

weeks at a time in Lausanne over two years. How many business school s can affordIMDs strategy?

Te attempt to convert traditionally educated proessors in Europe (and in America)

into business school teachers has largely ailed. I know a number o European state

universities that ailed to attract the minimum required enrolments to their MBA

programs in 2006.

I business schools cant attract new talent in sufficient numbers to their PhD

programmes and are also unable to retrain their traditional aculty to become

effective teachers in MBA or PhD programmes, what alternatives do they have?

In the rest o this article I will illustrate how two o the alternatives listed by the

Doctoral Faculty Commission report can be used and brought to bear jointly

to raise the limited supply o doctoral candidates in business schools. In response

toManageme nt Educat ion at R isk AACSB created the Doctoral Faculty Commission

(DFC), which came up with a series o recommendations that could alleviate the

shortage o business doctorates.

Introduction or expansion of doctoral programs for executives

Can business schools regain the talent they earlier lost to industry and encourage them

to undertake doctoral studies? Te response is affirmative provided that the doctoral

programme is based on applied research, which allows the executive to effectively apply

the experience and talent he or she has accumulated over the years; is flexible, that is, the

programme can be taken on a part-time basis; is industry relevant so that the doctoralcandidate can apply the results o his or her newly acquired research and knowledge

readily; and is able to motivate the doctoral graduate to teach in business schools on a

part-time basis afer the completiono the programme.

Tierry Grange, Director General o Grenoble Ecole de Management (GEM)

in France, once described this phenomenon as a process or knowledge/talent

recycling. GEM is among a good number o business schools and universities

that offer a Doctorate in Business Administration (DBA) degree programme.

Tere is a potential shortcoming o this model, however. I the DBA candidates are

not provided with an integrated learning system (ILS) through which they can stay

in constant contact not only with each other but w ith their mentors and also learn byinteracting with the e-learning system imbedded in the ILS, then a DBA programme

may lose a good number o its candi dates. It is important to keep in ocus that the

business executive has been trained and motivated to work towards measurable, time-

based, continuous and compensated objectives. Tey wi ll thereore become high-

maintenance students.

I the DBA programme administrators and mentors are not equipped to respond to

the executives individual needs and requirements, and this is ver y costly indeed, then

they must invest in an ILS that will respond to the executives needs or training in

academic research methodology and interactive learning. Intermittently scheduled

our- to five-day anchoring workshops, which bring all o the DBA candidates andmentors together, will complete the DBA training process.

The supply of PhD

candidates has beenreduced to criticallylow levels and businessschools have to ndalternatives to increaseinows into theirdoctoral programmes

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Characteristics of an integrated learning system

Te ILS environment combines the ollowing eatures:

Fully interactive web-based courses

Face-to-ace anchoring workshops with real-lie cases, examples and studies

Virtual classroom sessions bringing participants together with mentors

Evaluation tests designed to measure the effectiveness o learning

Simulations modelled to reflect real-lie applications o the knowledge gained

Project work allowing participants to put theory into practice

Access to research databases and inormation to enable the participants

to conduct research

Mentor support or all o the aspects listed above

Designing and successully operating an ILS requires accumulated know-howand specialised talent. An ILS, thereore, is not a panacea. However, it has been

demonstrated to be a highly effective approach, which in the long run costs less

than traditional doctorate and EMBA programmes to operate.

Content quality and delivery of an ILS

How much time and effort will it take a business school to develop an ILS o its own?

Unortunately, the answer to this question is not ver y encouraging because the design,

testing, development, constant maintenance and upgrading o an ILS make it a

complex process to manage. Many e-learning products have cra shed and burned

because their developers based them mostly on technology rather than teaching

and learning. Learning how to design an ILS is a long and costly process.Tere are nevertheless a handul o organisations that have already mastered ILS.

Some are also certified by the EFM D CEL (teChnology Enhanced Learning)

accreditation system and make excellent candidates or orming strategic alliances.

Responsibilities can then be shared between the parties.

For example, a local/regional university can concentrate on recruiting DBA or

EMBA candidates, designing anchoring workshops so that candidates need not

travel long distances, and training its own aculty to become DBA or EMBA mentors

within the ILS. Te institution that ow ns the IL S (wit h EFMD CEL status) appl ies

it towards the training/learning objectives o DBA or EMBA candidates.

During its Annual Meeting in Brussels in June 2007, EFMD awarded CELaccreditation to Kavrakoglu Management Institutes (KMI) Executive MBA

(EMBA) programme (w ww.kavrakoglu.com).

Ibrahim Kavrakoglu, KMIs director, earlier said that it took them several million

dollars o investment and nearly ten years to develop and veriy their ILS. He was

convinced years ago that there would be a very strong place or virtual learning

in the 21st century. I am convinced today.

Designing andsuccessfully operatingan ILS requiresaccumulated know-howand specialised talent

ABOUT THE AUTHOr

Deniz Saral, PhD, is Chairman and Professor, Business and Management Programs,School of Business and Technology, Webster University, Geneva

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Rechg

ut glbllyTHE EFMD PROGRAMME ACCREDITATION SYSTEM(EPAS) HAS LAUNCHED AN AMBITIOUS SCALE UPINITIATIVE. ULrICH HOMMEL OUTLINES THE BENEFITS

Successfully marketing a national premium

academic programme increasingly depends

on achieving international recognitionby employers, prospective students and

peer institutions. Prospective students

are particularly interested in programmes

that can act as a door-opener to promising

career paths in multinational companies.

They are specically looking for

multicultural learning environments

with well-established international

corporate links as well as

substantial alumni networking.

Te EFMD Programme

Accreditation System (EPAS)

serves as a partner to accredit

and continuously improve the

international reach o EFMD

members programme offerings.

Following two successul pilot

phases in 2006, EFMD uality

Services is currently embarking

on an ambitious Scale Up initiative

to expand the portolio o accreditedprogrammes in order to add brand

value to accredited programmes in its key

business school markets.

EPAS accreditation provides value in five

distinct areas:

by ensuring a quality first approach

by increasing brand recognition by key stakeholder

groups o accredited programmes,

by acting as a proo o concept or successul

internationalisation

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by providing network value or accredited programmes (EPAS accreditation strengthens

the partnership between the member institution and EFMD and an increasing number

o regular network events - such as the EPAS meeting at the 2007 Annual Conerence oster inter-institutional learning and will hopeull y provide the basis or the

development o co-operative arrangements between EPAS-accredited programmes.)

by possibly serving as a substitute or mandatory national accreditation (EFMD uality

Services is initiating talks with accreditation authorities with the objective o obtaining

national recognition. Any such effort, however, is conditional on a fit o national

accreditation standards with EFMDs general philosophy o developing a relationship

o mutual trust rather than providing a detailed public rating o a programme.)

However, the most immediate benefit o EPAS accreditation is also the one most

ofen overlooked by programme and possibly even business school management.

EPAS is based on a unique value model embedded in its Standards and Criteria that enorces

a quality first approach at all levels without inringing on an institutions prerogative to

differentiate itsel rom competitors (and also any implicit market standards). Te overall

programme assessment is put into the context o the institutional as well as the national

and international environments. A programme is evaluated on the basis o its design, delivery

and outcomes and, in addition, by appraising the supporting quality assurance processes. Te

assessment philosophy is designed to add value to a school and not to take an auditing approach.

Academic programmes ofen involve a lot o pragmatism. Programme officials may

ocus too much on marketing issues and may apply myopic short-cuts when it comes

to the undamentals o qualit y management, ofen driven by the need to respond

quickly to market dynamics in the presence o tight budget constraints.

EPAS, however, puts these qualit y issues at the oreront and thereby enorces principles

that ensure the creation o long-term value or the organisation as a whole. It can

ultimately create a halo effect or the entire institution and can thereore act as a

catalyst or change, enabling a business school to reach a state o EUIS readiness

much more quickly than otherwise.

In this context, organisational learning takes place in two stages:

preparing the sel-assessment report during the accreditation phase

dealing with specific weaknesses identified by the peer review team afer having

completed the initial accreditation.

EPAS is basedon a unique valuemodel embeddedin its Standards andCriteria that enforcesa quality rst

approach at all levels

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Previous experience has shown that inadequate prioritisation o

quality management is identified by characteristic shortcomings

related to the EPAS value model. Some examples are:

a disconnect between programme management and aculty,

implying that the aculty does not consider itsel to be the natural

owner o a programme and will thereore ail to devote adequate

creative resources to its uture development

irregular internal programme review processes without explicit

standards and objectives, implying a potentially dangerous autonomy

or the programme directorate

insufficient integration o the programme content across courses

and modules, making it di fficult or students to transorm learning

outcomes into general problem-solving skills

lack o rigor in programme assessment due to an overemphasis

o the student as customer perspective, inhibiting the emergence

o a culture o perormance excellence

Previous experience has also shown that acceptable levels and orms ointernationalisation may vary widely depending on the institutions markets.

For example, a Belgium-based programme with strong corporate links

to international consultancy firms and investment banks has to adopt

a global approach. By contrast, a programme operated out o Russia

with non-financial companies a s the key corporate stakeholders would

necessarily use di fferent geographical reerence points and would also

need to cope with the act that the home country already represents

a culturally diverse melting pot.

Similar flexibility is applied when determining the case-specific EPAS

standards regarding aculty qualification and academic research. Whatmatters, first o al l, is the impact o the acultys research activities on

programme content. Second, standards applied in the context o research

are a unction o the type o degree to be awarded. It is hardly conceivable

to successully run a specialised MSc programme without almost all aculty

members holding a doctoral degree and being actively involved in research.

By contrast, BA programmes may rely more heavily on ull-time teachers

without an explicit research ocus and the aculty composition o an MBA

programme will probably be more tilted towards corporate practitioners.

While EPAS is primaril y targeted at Bologna-t ype degree

programmes, it is also open to schools still in the process o transitioning

into the new system. So ar only seasoned stand-alone programmesbelow the doctoral level have been accredited within EPAS. But joint

programmes, new programmes rom well-respected institutions as

well a s doctora l programmes may become eligible within the short

to med ium term. ualit y S erv ices is currently also undertaking various

efforts to enlarge EPAS exposure in non-business school markets such as

public management, healthcare management or financial engineering.

Accredited programmes bear witness to the act that EPAS has already helped

schools to attain top positions in national rankings. Similarly to EUIS,

the reputational potential will only be ully realised once the EPAS portolio

has crossed a critical threshold. Te Scale Up initiative aims at achievingthis objective within the coming 18 months.

ABOUT THE AUTHOr

Ulrich Hommel is Associate Director, EFMD Quality ServicesFuthe infomation:Please contact Emma Keating emma.keating@efmd.org

While EPAS is primarilytargeted at Bologna-typedegree programmes, it isalso open to schools still inthe process of transitioninginto the new system

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Institutions of higher learning tend to devotemore attention to the production side of theiractivity scientic work and educationalprogrammes rather than to their ownmarkets. This is understandable as they areconcerned with long-term issues that shouldnot be inuenced too much by contetualhazards. In the case of business schools

in particular, this might have two negativeeffects that could impair their relevance,if not addressed properly.

First, business schools tend to live incomfortable isolation from the real worldand miss opportunities to learn fromcompanies and the business world. Second,they tend to protect with jealousy theiridiosyncrasies and only undertake marginalcooperation with partner institutions.

I believe that accreditation procedures area powerful lever to help institutions clarifytheirs missions and improve their processes

but also to relate more efciently totheir environment and learn from it.

ESSCA has gained a lot from its EPASaccreditation process. Its focused approachhas allowed an in-depth analysis of itsGrande Ecoleprogramme and has served asa powerful lever for innovation and progress.EPAS has also provided us with an invaluableopportunity to evaluate our programmeagainst international best practices bothfrom the corporate and the academic world.In addition EPAS will be a powerful referencefor our graduates on the world job market.

Michel Pot

Director general

ESSCA

Grand Ecole programme

EPAS accreditation is uniquely useful as theonly international programme accreditationfor management courses other than MBAs.Although we have since gone on to EQUISaccreditation, it is especially useful to provideinternational recognition for programmesoffered by organisations for which institutionalbusiness school accreditation is not, or not

yet, appropriate.

One of the initial reasons we soughtaccreditation was for marketing purposesand we did eperience a substantialincrease in student numbers in the yearfollowing accreditation, although some ofthat increase was also a result of a numberof other initiatives. However, it quicklybecame obvious during the accreditationprocess that the process itself was likelyto be even more valuable than the award.The process of self-evaluation, the in-depthreview by the visiting panel and the nalreport provided a uniquely useful strategicreview of the programme, its market position,the contribution it makes to the school andits delivery.

Although we only submitted one programmefor evaluation, the impact on the schoolhas been much broader as the qualitycontrol and strategic assessment practicesinherent in the EPAS process have becomemore broadly accepted within the faculty.

Prof W Rees, Director, Universiteit van

Amsterdam Business Schoo l

Amsterdam University Business School,

Master in International Finance programme

EPAS has been a major incentive to furtherdevelop MIRBIS international culture. Self-assessment was etremely important for ourSchools team as it was an opportunity tobenchmark what we are doing against EPASstandards. In the whole EPAS process, weunderstoo