magazine for the nyenrode community • issue
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spring 2012
our world
Now magazine for the nyenrode community • issue
executive education Nyenrode Business Universiteit offers a wide range of open and customized programs, national and international. The programs vary from one-day masterclasses to management development programs of up to 2 years.
customized programs Nyenrode offers Customized Programs that are tailor-made to suit
content of the program, as well as the learning methods employed by
the needs and objectives of your organization. Our strength lies
our faculty and program management depend heavily on the purpose
in creating programs that are specifically designed to educate the
for learning and the issues your organization wishes to address. We
individual professionals in your organization and contribute to the
focus on the business challenges faced by (international) companies.
development of your business. All our programs are designed in close
We offer a unique context for learning, exchanging knowledge,
co-operation with the client and future participants. The length and
anticipating developments and realizing possibilities.
open programs BOARD & GOVERNANCE • CFO Academy • Corporate Governance for Management Assistants • Corporate Social Responsibility (CSR) in Action • Foundations of Corporate Governance • NCD-Nyenrode Commissarissencyclus • New Board Program ENERGY • Energy Mini MBA ENTREPRENEURSHIP • Kansen Creëren voor Nederlandse Ondernemingen FINANCE & ACCOUNTING • Fusies & Overnames • IT & IT-Management voor Financials • Public Sector Auditing GENERAL MANAGEMENT • Advanced Management Program • Foundations of Management • Leadership Development Program • Strategic Leadership Program HEALTHCARE • Bedrijfsvoering Tandartspraktijk • Healthcare Entrepreneurship
HRM STRATEGY & CHANGE • Interventie Management • Executive Reward & Strategy Program • Integraal Managen van Projecten • Touching the Community Soul INTERNATIONAL MANAGEMENT • Advance Your Business in Changing China • Entrepreneurial Leadership Program Poland • International Mergers & Acquisitions • ITT Intercultural Leadership Program for Asian Professionals • Understanding India MARKETING & SALES • CRM Leadership • Internet Marketing & Social Media Strategie • New Product Development & Innovatie • RTLZ Masterclasses • Sales Management PENSIONS & INSURANCE • Bestuurscourse Pensioenen • Executive Pensions Program • Deskundigheidsbevordering voor RvB & RvC PERMANENT EDUCATION • See www.nyenrode.nl/PE
PRIVATE WEALTH MANAGEMENT • Private Wealth Management Program • Professional Investment Program PROFESSIONAL SERVICES • Management van Professionele Dienstverlening • Ondernemen en Innoveren met Diensten REAL ESTATE • De Derde Woensdag in September • Nationale Vastgoeddag • Vastgoedfinanciering in Woelige Tijden SUPPLY CHAIN MANAGEMENT & PROCUREMENT • Implementing Lean Six Sigma SUSTAINABILITY • Be Prepared for the Future • Merger of Interests (Woningbouwcorporaties) • Workshop for Housing Associations TAX • Tax Accounting & Tax Reporting • Tax Assurance
spring 2012
4 the mix News@Nyenrode: the print version 7 theme: our world We’d better get used to change. In the global village, it’s here to stay 8 future perspectives Three prominent professors give their take on where we’re heading 12 london 2012 The Olympic clock is counting down. Some facts and figures about the greatest show on earth 14 imba With 20 nationalities, the International MBA is true to its name. The hopes and dreams of seven students 18 business spirituality A professor puts the corporate world in a spiritual context 20 international business education Nyenrode partners in South Africa, the USA, China and India on studying business in their countries 24 center for cooperative financial services A new center is looking for ways of financing a more cohesive world 26 international msc in accountancy Nyenrode’s first English-language accountancy Master is under development 27 campus close-up In their own ways, previous owners of the estate also looked beyond the moat
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Our world Nyenrode NOW Magazine for the Nyenrode Community, Issue 1, spring 2012 Published by Nyenrode Business Universiteit Editor-in-chief Jakomien ter Haar Associate editor/writer Terri J. Kester Layout U-Cap, Cynthia Schalkwijk Cover Dietmar Gunne Editorial board Jakomien ter Haar, Helm Horsten, Terri J. Kester, Cynthia Schalkwijk, Pol Schevernels, Renske Siskens, Selma Spaas Contributors Dietmar Gunne, Gert Immerzeel, Steve Korver, George McDonald, Leen Paape, Pim Ras, John Widen Rector Magnificus/CEO Nyenrode Business Universiteit Maurits van Rooijen President Nyenrode Foundation Piero Overmars The Communications Department of Nyenrode Business Universiteit reserves
www.nyenrode.nl/executive-education
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the right to edit contributions. Nyenrode Business Universiteit
Back in 1946, our founding fathers – captains of industry from leading Dutch corporations – started an educational institute they called Het Nederlands Opleidings-Instituut voor het Buitenland (NOIB). They knew then what we know now: the world needs new, internationally oriented business leaders. Today more than ever. Nyenrode wants to remain at the cutting edge, especially in terms of international outlook. We need to continue spreading our wings and cultivate a presence abroad. That’s why we are exploring new and varied kinds of international cooperation. We not only invite students, faculty and business people from all over the world to come to our campus in Breukelen to be part of the Nyenrode experience, but we have also started to export this experience to other countries, from Finland to China. Since the world is becoming ever more interconnected and the international perspective is so dominantly present in Nyenrode’s DNA, it is appropriate that this edition of Nyenrode NOW is dedicated to the global village. The articles range from this year’s Olympic Games – probably the world’s most international event – to the influence of spirituality on the global business community and long-term visions from Nyenrode professors on where the world is heading. This magazine also gives you a glimpse of our international connections and ambitions. Almost a fifth of all Nyenrodeans live and work outside the Netherlands – a simple statistic showing that the world truly is a Nyenrodean’s oyster.
Straatweg 25, 3621 BG Breukelen The Netherlands Tel. +31 (0)346 291 211 www.nyenrode.nl enews@nyenrode.nl
Maurits van Rooijen Rector Magnificus and CEO of Nyenrode Business Universiteit issue 1, spring 2012 • nyenrode now
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news@nyenrode
the mix fitting new partner in the us
homecoming with a difference
There is news to report about Nyenrode’s contacts with the Uni versity of Oregon (UO), which go back half a century. Nyenrode has selected UO’s Lundquist College of Business as a partner school for its MBA programs. The fit could hardly be better. Lundquist College specializes in the areas of entrepreneurship and sustain ability, which are closely related to Nyenrode’s own strengths. The historic ties between the two universities, plus the fact that alumnus Kees de Kluyver (right) is dean of Lundquist College, are also important reasons to be confident of the success of the new partnership. This summer, both the International and Executive MBA students will travel to Oregon for a taste of management education in the USA. To find out more about American business schools, go to page 21.
postma prize for princess máxima
Alumni who have left the campus periodically return to Nyenrode to catch up with former classmates. Getting the founding fathers to return to their alma mater, however, is a little more difficult. Nonetheless, the Nyenrode Fund Foundation recently took action to raise their profile and ensure a permanent presence for those early sponsors on the estate. In November, the foundation invited the
successors and current board members of the organizations once led by the founders for an event marking the university’s 65th anniversary. On this occasion Frank Weijers, CEO of Unilever Benelux (pictured right), unveiled a plaque honoring the founding fathers. André Olijslager (left) chairs the foundation’s supervisory board, and the student population was represented by Marjoleine Wortel (center).
it’s all about reputation
close finish for mba innovation award
It’s official: Nyenrode’s MBA program is the top. A survey conducted by the business magazine Management Team, which encompasses all MBA programs in the Netherlands, showed that Nyenrode’s MBA has the best reputation in the land. Almost without exception, alumni are more than satisfied with their program. MT attributes the result, among other things, to life on the campus and the university’s close ties with the private sector.
Innovation is not just a business buzzword. It’s also a vital ingredient to help global business find its way out of the current crisis. It was therefore very gratifying for Nyenrode to be voted one of the four finalists competing for the MBA Innovation Award. The panel judging the entries included Sir Paul Judge, the appropriately named chairman of the Association of MBAs, which organized the competition. The University of Waikato in New Zealand carried off the award, but Nyenrode’s entry also impressed the jury. The judges were particularly interested in the Apps in Business created for the IMBA, the Executive MBA’s information and innovation program and the integrated technology programs.
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It’s not every day that a real-life princess comes to visit. However, on November 24 Princess Máxima, who married Crown Prince Willem-Alexander a decade ago, arrived in style at Nyenrode to be presented with the Postma Prize. The honor, named after former Rector Magnificus and Executive Board Chairman Jacques Postma, is awarded to persons who have performed an outstanding social service in one or more of Nyenrode’s fields of excellence: leadership, entrepreneurship and stewardship. The jury praised the way in which Princess Máxima serves as an example to others. She does so, they said, by demonstrating that excellent leadership and entrepreneurship can only be
achieved by consciously and consistently promoting the necessity of stewardship. The jury report also mentioned her efforts, both in the Netherlands and abroad, to improve access to financial services and advance financial skills. The Postma Prize takes the form of a sculpture of the Egyptian djed symbol, which stands for stability and social sustainability. It was presented by Rector Maurits van Rooijen. The Princess’s visit coincided with a conference on a field close to her heart. Entitled Sustainability in the Financial Sector: Are We Ready?, the conference was staged in the context of Nyenrode’s 65th anniversary.
issue 1, spring 2012 • nyenrode now
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news@nyenrode
theme our world
publications by faculty Four professors – Mijntje Lückerath-Rovers, Barbara Bier, Muel Kaptein and Leen Paape – have clubbed together to compile the first edition of the Jaarboek Corporate Governance (ISBN 789013091328). Their subject, a hot topic by anyone’s standards, proved worthy of their combined efforts to shed light on such diverse subjects as the importance of board evaluations, the ‘apply or explain’ principle of governance codes, the functioning of administrative bodies, governors’ rewards, risk management, corporate culture, the roles of accountants and audit committees and the supervisory board’s report. On November 17 the first copy of the book, which was published by Kluwer, was presented
master of melody
to Jos Streppel, the chairman of the Corporate Governance Monitoring Committee.
management in motion Lecturers and researchers at Nyenrode’s Public Sector MBA provided the raw material for a highly original book entitled Management in Beweging: Een Mini-MBA in Eén Boek (Management in Motion: A Mini-MBA in One Book). Their impressions and analyses of recent developments relating to the public sector were edited by three business education specialists: Edgar Karssing, Hans Bossert and Louis Meuleman. Offering concrete tips and management strategies, the book (ISBN 9789023248064) delivers on the title: it constitutes a concise MBA in a single volume.
its ability to be molded into a snowball and as such have a significant impact. Together, a million snowflakes can change the world. At Nyenrode the belief in collaborative effort is strong. This is why the university has become a founding member of One Million Snowflakes, a venture bringing together professionals who believe in a better world and want to help make that world a reality. A big snowball is the metaphor used for the value they jointly represent. Snowball Leadership, Co-creating a Movement of Meaning is the title of the first event the group is planning, at Nyenrode on Thursday April 26. On the agenda will be lectures by internationally renowned speakers in the field of leadership. The registration fees for the event will be donated to Save the Children and used for the education of young people in developing countries.
In 1915, Nyenrode’s then owner Michiel Onnes commissioned a carillon for his castle from the Taylor Bell Foundry in Loughborough, England. It’s taken a while, but the chimes now have their own carillonneur, Jan Willem Achterkamp. After playing the carillon for several years, he has been officially appointed as University Carillonneur, one of only five Dutchmen holding that position. The series of statues by Pieter Kortekaas, which are being unveiled on the campus in the course of this year, has inspired Achterkamp to create new music for the keyboard-activated carillon.
snow in april A snowflake is more than a frozen ice crystal. It symbolizes purity, virginity, and more. Nyenrode has adopted it for a different quality:
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www.nyenrode.nl/news www.nyenrode.nl/insights
Going international
dietmar gunne
year’s worth of corporate governance
by george m c donald
I
nternationalization sounds like a cool modern buzzword, but the idea has been around for a while. Imagine the scene in Africa a million years ago, among a bunch of early Homos with little reason to feel gay. Local educational opportunities are limited. Avoiding predators who are forever threatening a hostile takeover counts as a rich learning experience. And as for the social scene, well the only thing one can say is “Ugh!” Eventually a young and restless individual grunts “I’m outta here,” and heads for Europe. Before you know it, half a million years have flicked past and folks are speaking admiringly of Homo heidelbergensis – his quick mind, his language skills, his ability to navigate the cool Heidelberg student scene during an Ice Age, his knowledge of far-flung corners of the world (some as much as ten kilometers from his cave door). Since those simple times, we have learned much about how vibrant an international lifestyle can be compared to the limited horizons of those who stay at home. Not for nothing have trading and intellectual crossroads cities like Alexandria, Rome, Istanbul, Samarkand, Amsterdam, Hong Kong and New York captured the imagination of their times. Yet there’s something to be said for staying put too. The Victorian English writer George Eliot (the pen
name of Mary Anne Evans) captured that feeling nicely in her novel Daniel Deronda (1876): “A human life, I think, should be well rooted in some area of native land where it may get the love of tender kinship from the earth.” Ah, for the calm certainties of Home Sweet Home! Caught up in the wild dance of globalization, and facing the many uncertainties and often stunning changes that go with it, we can be forgiven for wanting a little calm space in which to catch our breath. Such a timeout does not seem to be on offer, however – not now and probably not for years to come. We will continue to be swept along, whether we like it or not. But what’s not to like? We’re making history here: one international job posting, one off-shored contract, one language barrier broken at a time. Some day, things will calm down and a new stability will settle in. People in that perhaps distant future may yawn and look back at us with envy. Why? Because we confounded that ancient Chinese curse: “May you live in interesting times.” And we did OK. George McDonald is a freelance journalist and a regular contributor to Nyenrode NOW. issue 1, spring 2012 • nyenrode now
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our world future perspectives
What’s next? we asked three nyenrode professors, each with his own area of expertise, to give their take
rené tissen has been professor of business studies since 1993. he is the author of several management books and numerous scientific publications. « The current situation in Europe is grave. Poverty – actual and perceived – is increasing, while prosperity is decreasing through the depletion of pension and social security funds and the escalation of mortgage problems. People, particularly the self-employed but professionals as well, are worried about their future. There is a genuine belief that Europe is on the verge of bankruptcy. Europe is vastly over-extended in debt for housing so house prices, which hugely affect people’s perception of prosperity, are dropping. This perceived drop in prosperity causes insecurity. Rather than spending money and thus fuelling the economy, people are saving as much as they can, which creates a snowball effect. Years of spending and consuming have taken their toll. From a prosperity point of view, the consumer economy is dead. The US solution would be to pour money into the economy, but in Europe we tend to favor austerity. Neither of the two is the whole answer. If you overstimulate the economy you risk running up more debt, while too much austerity takes away people’s prospect of a future. Part of the problem is that the current structure of Europe doesn’t allow for a sustainable solution. Recent summits were little more than political hyperbole with proposed solutions that just won’t work. The inability of European leaders to come up with creditable solutions is making people even more insecure. Europe is on the verge of defaulting; it’s only the political will of Merkel and Sarkozy that’s preventing it. But for how long? I think the solution will be preceded by a strong, cleansing crisis. Just two years ago there was an ocean of cheaply available liquidity but this is quickly drying up, severely impeding economies and bringing Europe to its knees. For three years I’ve advocated that debts between member states and banks be written off against each other and the remaining debt over a certain ceiling be placed in a bad bank and forgotten about. Otherwise the current millstone of debt will prevent any form of sustainable economic growth. In two years’ time the world will be a vastly different place to what we’ve been used to.
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by john widen
Germany, where people tend to save up for things before buying them, is in a better condition. It has also maintained its large manufacturing base, enabling it to create a substantial trade surplus. This contrasts sharply with some southern European countries, which have run up huge deficits because they’ve had to import nearly everything. So Germans on the street are becoming increasingly resentful at seeing the wealth they have created used to bail out the rest of Europe. I’m convinced that an orderly withdrawal from the euro would help resolve the issue. It would be technically simple, economically prudent and politically justified. However, if just one or two countries were to withdraw, the resulting haggling would be catastrophic. When Europe decided to unite under a single currency in 1992 we did so from a position of strength, but years later we’ve created prosperity based on debt. Admittedly I have a reputation as the Doctor Doom of the Lowlands, but we are in a grave situation that could still end in default. That said, during the past year the patient that is Europe has faced many life-threatening crises – but he is still breathing. »
paul hilbers was recently installed as professor of governance of financial institutions. he worked for the imf in washington for 15 years and is now divisional director of de nederlandsche bank. « The current crisis has revealed important gaps in the worldwide supervisory structure and highlighted the need for regulatory reform. It was caused by a combination of interrelated aspects, such as macro-economic imbalances, ‘loose’ monetary policy in the US, a fundamental underestimation of risks and weak governance. The cause of the crisis, however, can also be summed up in a single word: ‘trust’. The crisis has illustrated the importance of trust for the financial system, because it forms the foundation for transactions with counterparties. You could argue that without trust in the financial system, banknotes are nothing more than pieces of high-
r e n é t i s s e n : « a n o r d e r ly w i t h d r a w a l f r o m t h e e u r o w o u l d b e technically simple, economically prudent and politically justified»
quality paper. Regaining trust is now one of the biggest challenges for financial supervisors all over the world. I see several measures that can help achieve that. Firstly, it’s important that financial institutions have sufficient robust capital buffers, which are available in times of stress to cushion against serious losses. But capital buffers alone are not enough. They only absorb risks, they don’t prevent them. Supervisors also need to become more forward looking by giving attention to strategic and qualitative elements. These indicators can warn of potential problems and include business models, strategies and the internal governance of financial institutions. The risk profile of a financial institution is, to a large extent, defined by the behavior and integrity of its management and the reward stimuli available to its employees. Changes to the supervisory approach are also required. Instead of exerting influence through moral suasion, supervisors will have to be alert and react firmly when necessary. Financial supervision will become more internationally focused. Since the global liber alization of the financial sector in the 1980s, financial markets have become increasingly interdependent. Consequently, problems in
p h oto g r a p h y p i m r a s
on the future in the light of the current economic crisis.
one country or market can quickly spread to others. Prior to the crisis, financial supervision was mostly organized on a national level. In Europe we have seen much effort to close this gap with the creation of three supervisory organizations: one for banks, one for insurance and pension institutions and one for financial markets. These organizations will contribute to a level playing field, because they can impose mandatory technical guidelines on a European level. Regulations will become increasingly international, stringent and centrally defined – here in Europe anyway. Indeed, Brussels has already assumed a more important role in international supervision and governance. To move forward, the importance of a strong, healthy financial sector cannot be overemphasized. However, it’s essential that we find a good balance between the economic benefits of a strong financial sector and the inherent risks. For countries with a relatively large financial sector this will require strict regulations, an effective supervisory framework and international coordination. But it will also necessitate a broader scope of interdisciplinary expertise for financial supervisors. They’ll need intrinsic knowledge issue 1, spring 2012 • nyenrode now
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our world future perspectives
of how markets and economies function as a whole, and of how the macro-economic environment interacts with the financial position of individual institutions and vice versa. And in addition to mastering traditional disciplines like accountancy and law, supervisors will also need to be well versed in areas such as communication and even psychology. »
haico ebbers is professor of international economics and chairman of nyenrode’s europe-china institute. he is also an expert on eastern european economics. for the past ten years he has focused primarily on china and its relationship with the eu. « The fast-growing economies of Brazil, Russia, India and China, the so-called BRIC countries, will play an important role in solving the
current economic crisis. According to research, they will generate more than 45 percent of global economic growth over the next ten years, making them a more important growth driver than the EU, the US and Japan put together. In the long term countries like China will invest in European companies. In the short term they’ll take up government bonds to alleviate acute financial problems, not through direct financial injections but mainly through the IMF, in the hope of getting more decision-making power. For China, Europe’s economic woes are a double-edged sword. On the one hand a solution will clearly benefit the country because it holds billions of euros, and of course it still needs export markets. On the other hand, a fall in the value of assets, like European companies, presents attractive M&A possibilities. Interestingly, the Chinese word for crisis is spelled with two characters; the first means ‘danger’ and the second ‘opportunity’. It could be argued that China helped fuel the crisis that preceded the current one in 2008. China then had so much liquidity that it used a lot of it to finance huge expenditures by both government and consumers in the US. The market was
haico ebbers: «i expec t that in a few years’ time we’ll look back on the crisis as just a period of stagnation and negative grow th»
pa u l h i l b e r s : « r e g a i n i n g t r u s t i s n ow o n e o f t h e b i g g e s t c h a l l e n g e s f o r f i n a n c i a l s u p e r v i s o r s a l l ov e r t h e w o r l d »
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flooded with money and people just kept spending, thus creating an asset and housing bubble. East European countries, many of which have benefited tre mendously from EU membership during the past 15 years, are more affected by the problems in the EU, because it accounts for practically all their trade and investments. If they have already adopted the euro, their monetary policy is in the hands of the ECB in Frankfurt. The fiscal discipline imposed by this prevents them from fine-tuning their economies to increase their competitiveness. However, if the crisis forces wealthier EU nations to cut costs by outsourcing more activities, East European countries could benefit because rising wages in China and India are making Eastern Europe more competitive. Some people think that European countries should not have dismantled their manufacturing base, but I’m not so sure. Individuals as well as nations should do what they’re good at. If that means providing services, then so be it. Services also create jobs and wealth and are often more sustainable than manufacturing industries.
S ervices now constitute over half the Chinese economy. And, to put manufacturing export in the right context, foreign companies account for more than 60 percent of China’s exports. I’m not convinced the crisis is as serious as the media would have us believe. I expect that in a few years’ time we’ll look back on it as just a period of stagnation and negative growth. There is an economic problem; but production levels in 2012 are about the same as in 2007, and there was no talk of a crisis then. Economic growth is cyclical; it’s driven by demand, combined with the efficiency of labor and capital. I think that in the long term the trend of economic growth will stay more or less the same. As for the media predicting the demise of the euro, economic and fiscal union brings so many advantages that from an economic point of view I think this is a non issue. Europe’s most important driver is its single market, not its single currency.» John Widen is a freelance journalist and a regular contributor to Nyenrode NOW. issue 1, spring 2012 • nyenrode now
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our world london 2012
The greatest show on earth by terri j. kester
the countdown to the 2012 olympic games started on july 6 2005, the day london was elected to stage the event, beating paris by four votes. three years later beijing passed on the olympic torch to london. on that occasion the stark contrast between china’s rigidly orchestrated show and the uk’s supercool presentation, complete with double-decker bus, caught the public imagination.
since then, preparations have gone full speed ahead. on july 27 2011, precisely one year before the official opening
venues and infrastructure Most of the sports facilities are in London. The throbbing heart of the games will be the 200-hectare Olympic Park in Stratford in east London. The park includes the main 80,000-seat Olympic Stadium and the Aquatics Centre. Existing facilities that will be used include Lord’s Cricket Ground in central London and the Millennium Dome in Greenwich. The Channel Tunnel Rail Link will shuttle passengers between central London and the Olympic Park in just seven minutes and will link up to the Eurostar for transport to continental Europe. If the improved services of the London Underground are taken into the equation, a train will arrive at the Olympic Park every 15 seconds. Late last year it was announced that the construction of all new main venues and the infrastructure were complete. In the Olympic Park thousands of trees are already taking root, and the final piece of turf in the Olympic Stadium has been laid. The Basketball Arena, the Copper Box (the renamed Handball Arena), the Velodrome, the Aquatics Centre and the Lee Valley White Water Centre are also ready to receive the athletes. The number of completed apartments in the Olympic Village recently reached the symbolic 2012 mark. More than three-quarters of the residential plots have been finished, and the Broadcast and Main Press Centres are ready to welcome the world’s media.
the business case If the Olympics are approached like a regular business case, no one in his right mind would even consider staging them. In financial terms the risks are vast. For London, the biggest challenge is yet to come. In order to sell the games to the British people – to the taxpayer in other words – the costs have probably been underestimated. What that can lead to has become painfully clear to the
of the games, london’s mayor boris johnson unveiled the olympic clock. more importantly, he announced that the construction work was, by and large, on track and on budget. and on january 27, six months to kick-off, danny boyle (the director of slum dog millionaire) gave details about his latest brainchild, the olympic opening ceremony. it will feature schoolchildren, nurses, a shakespearean monster … and a dose of british humor.
organization and costs The entire delivery of the 2012 games is being monitored by the Olympic Board, which comprises UK Culture Secretary Jeremy Hunt, Boris Johnson, British Olympic Association Chairman Colin Moy nihan and former top athlete Sebastian Coe, plus some observers. Coe also chairs the Organizing Committee of the Olympic and Paralympic Games (LOCOG), the organization responsible for staging and hosting the games. Almost all of LOCOG’s budget will be raised from the private sector. A public body, the Olympic Delivery Authority (ODA), is responsible for developing and building the new venues and infra structure for the games and their use post-2012. ODA is funded by the UK Department for Culture, Media and Sport, the Greater
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London Authority, the London Development Agency and the Olympic Lottery Distributor. In terms of costs, the organizers of all modern Olympics have known in advance that the expenditure would rise and keep on rising. Rocketing media rights are one reason, ever-increasing security costs are another. US$1.5 billion, the amount Athens paid for security alone, could have covered the total cost of some previous games. When London made its bid in 2005, the estimated cost of the games was £4 billion (approx. $6.3 billion), a quarter of which was intended for the regeneration of the Lower Lea Valley. Less than two years later, the British government published a revised figure of £9.32 billion ($14.7 billion). What the final cost will be is anybody’s guess – but the same is true for the benefits.
the london olympics by numbers 26 sports 39 disciplines 19 competition days 34 venues 8.8 million tickets 10,500 athletes 302 medal events 21,000 media professionals 205 National Olympic Committees 3,000 technical officials 7,500 team officials 200,000 total workforce, incl. 6,000 staff, 100,000 contractors and 70,000 volunteers 1,500 UK companies delivering Olympic contracts 44 domestic corporate sponsors
Canadians, who spent decades paying off the US$1 billion debt for the Montreal Olympics. At the time, the Mayor went on record as saying: “The Olympics can no more have a deficit than a man can have a baby.” Perhaps he was referring to the intangible profits. But he might have chosen his words more carefully. Montreal is not alone in having miscalculated the economic consequences of the games. More recently Athens, too, has had to face a large deficit. But there are also success stories to report, certainly in social, political and city marketing terms. The differences between Olympic cities, political systems and what is and is not included in the figures are so great that it’s almost impossible not to compare apples and pears. Financially, Los Angeles 1984 is widely considered to have been the most successful modern Olympics. Corporate sponsors were lining up to pay big bucks to see their names in lights. And the size of LA meant that relatively little construction was needed, so the city’s resources were not unduly strained. If anyone deserves the credit for the $250 million profit reported by the LA Olympics, it’s Peter Ueberroth, a former sports and business executive. Ueberroth proved the games can be a great investment opportunity, so long as they are methodically approached and executed. For a total revenue of $126 million – $10 million more than estimated – he sold the games to Coca-Cola, AnheuserBusch and 30 other corporate partners. The government did not contribute any public money. Four years later, Seoul 1988 reported a total profit of $300 million, a record result for a government-run Olympiad. Barcelona 1992 made a modest profit of $5 million. But the intangible benefits to the Catalan capital were even more important. The authorities used the games to rebuild the city’s waterfront, turning it into one of Europe’s most attractive tourist destinations. Atlanta 1996 managed to make a $10 million profit. An impressive achievement, but the games’ heavy reliance on corporate sponsorship and the intrusive advertising elicited severe criticism. Profit figures for recent Olympics are hard to find, but the income from Sydney 2000 approached $1.8 billion. Like Barcelona, Sydney used this opportunity to rebrand. When the Olympic torch moved on, it was widely recognized as a modern, vibrant metropolis. Athens 2004 did not fare so well. Its modest budget of $5.3 billion shot up to around $15 billion. The net loss contributed to Greece’s budget deficit and the crisis the country find itself in today. Beijing 2008 reportedly raked in $146 million. But it remains unclear how this has benefited the local and national economy.
the legacy The key message of London 2012 is that the games will provide the UK with a lasting legacy by regenerating one of the poorest areas of London, inspiring a new generation to greater activity and achievement and supporting the Olympic movement of the future. Every effort is being made to achieve this goal. Terri J. Kester is a freelance journalist and associate editor of Nyenrode NOW. issue 1, spring 2012 • nyenrode now
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our world international mba
33 students, 20 nationalities. the international mba class graduating in 2012 has turned nyenrode into a global village. by terri j. kester
nele rogenbaum, 34, estonian
duncan garde, 27, irish/zimbabwean
“I came to Nyenrode because … … the IMBA program emphasizes entrepreneurship and global business, both of which are at the heart of my plans. I had pretty much decided to go to a university in the US. But then I attended Nyenrode’s campus weekend and was surprised by everything I saw and heard. The beautiful campus and friendly and professional program management add a lot of value.”
“I came to Nyenrode because … … its core focus areas resonated with my personal values. In our increasingly complex world, strong leadership is critical. As I may well start my own company, the entrepreneurship focus was also interesting for me. Finally, I am a firm believer in business being accountable to all stakeholders. This made Nyenrode’s identifying concept of stewardship the icing on the cake.”
The class of 2012 today
aimée tañón, 41, american
p h oto g r a p h y p i m r a s
uniting the nations 14
“I came to Nyenrode because … ... it resonated with me. As a senior yoga teacher, I was touched by the energy on the campus. It reminded me of upstate New York. The beautiful landscape, the tranquility and the unique ness of the program were factors as well, and so was program director Désirée van Gorp. Her dedication, intuition and great heart are woven into our program.”
dimitris tsakos, 25, greek/irish
mackenzie masaki, 29, kenyan
may sau, 29, canadian
gouri taman, 27, indian
“I came to Nyenrode because … … there are such excellent people here. While I was hard at work in Amsterdam, I had a random encounter with Nyenrode through its MBA Challenge scholarship competition. The staff I met on that occasion left a great impression on me. Combined with the great reputation of the school, that was all it took to convince me to come!”
“I came to Nyenrode because … … the alumni network and the opportunities it offers particu larly appealed to me. In addition, the extremely good IMBA program is based on and driven by the market. Nyenrode was founded by business for business, a focus that has been maintained through the years. I needed industry-based tutelage to help develop my skills set and education.”
“I came to Nyenrode because … … from a lifestyle perspective, I liked the small class size and the community-based atmosphere. And from a practical perspective, I was attracted by the international modules and the company visits at the end of the week. The guest lectures align with my goal of obtaining international exposure as well as access to industry leaders.”
“I came to Nyenrode because … … I want to explore new career opportunities. My husband graduated in the 2011 IMBA class, so I already knew about the program and the campus. The one-year program requires only a limited time investment. Other advantages are the small class and the diversity of students. And the strong alumni network can facilitate access to my chosen field.”
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our world international mba
The class of 2012 tomorrow
partner. It’s my belief that the biggest challenges always lie ahead, so I want to stay tuned and live up to them.”
mackenzie masaki from kenya
duncan, may, dimitris, mackenzie, aimée, nele and gouri are shaping their own future. they share their hopes and dreams with nyenrode now.
duncan garde from ireland “After graduation, my dream job would be to work in an institution which focuses on ‘bottom of the pyramid’ solutions for the world’s poor. I would love to start my own company in this sector, or help entrepreneurs from this income segment in their personal devel opment and with their solutions to poverty challenges. I grew up in Africa, and ideally I’d like to move back there to get involved with product and business initiatives. When I look back on my life, I want to know that I improved the lives of others, using innovative products created by and designed for the very poor.”
may sau from canada “I love technology. When I have graduated I would like to work in an innovative organization that is dedicated to creating products and services which will improve the way we live and work. Initially I’d like to work in Europe, preferably in the Netherlands, and at a later stage I hope to continue my career in China. More than anything, I enjoy learning things by interacting with new and interesting people. My ultimate goal is to travel in order to keep meeting people who can provide continuous inspiration.”
dimitris tsakos from greece “I already have experience of working in the financial sector, in consulting and in startups. Next, I’d like to move into venture capital or private investment. I’d love to work with small companies to give them the means to reach their full potential. I would also consider moving back into consulting, provided I can assist developing companies to manage their growth or bigger companies to manage their innovation processes. I have no constraints in terms of the country where I work, so long as I have room for relaxation and plenty of great people to be with. Both in my career and in my private life I’d like to be remembered as a trusted and valuable
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“I am doing this MBA because I believe it will give me insights about myself and the contribution I can make to society. After graduation I would like to work for a global management consultancy like McKinsey for a while, preferably in Holland, Brazil, Chile, Ghana, Botswana or Singapore. After that, I intend to seriously pursue entrepreneurship in East Africa or in Ghana. My four years of working in East Africa have taught me that the biggest issues there are poverty, access to healthcare and stewardship. Helping to solve these issues would be a very noble goal. But what I am most keen on is just to get something done, because there’s too much talk and nowhere near enough action. How I can tie this in with my life is a work in progress.”
aimée tañón from the usa “As the oldest IMBA student I have already experienced working on four continents, in the fashion and IT industries. Within five years, I will open a yoga & wellness center in Europe/the Americas, possibly with another Nyenrode alumnus. As an eco-spiritual entrepreneur, I believe in applying the principles of Buddhism and yoga to business. It enables me to nurture my passion for retail, marketing and advertising without losing sight of the important things in life. Currently, I am considering working for H&M in Stockholm or CapGemini Consulting, utilizing my MBA to leverage my international experience. I strongly believe in leading by example and learning from one’s mistakes. I will continue to allow what feels right to manifest itself. What’s missing in business is connectedness to self and others.”
nele rogenbaum from estonia “First of all, I would like to get a few years of work experience in a private luxury or boutique hotel here in the Netherlands. My longterm goal in, say, five years is to open and run my own hotel in South America. I am leaning towards Peru, but I’m also looking into opportunities in Chile and Panama. When the hotel materializes, it will be my hobby, passion and love – all rolled into one. Interesting alternatives might be a wine estate or a restaurant with its own bakery.”
gouri taman from india “I qualified in India as an electronics engineer and also worked as a software engineer. The most likely scenario is that I will combine my technological background with the business skills I am building here and find work in supply chain management, perhaps as an operations manager. I don’t yet have a clear idea about the career I want to pursue, but I would certainly enjoy traveling for business. I’m willing to go anywhere in the world, so long as my work gives me a good role and provides a learning experience.” issue 1, spring 2012 • nyenrode now
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our world business spirituality
Spirit matters
1902 emigrated from Rajasthan to Suriname. Among other things, she took a deep interest in the yoga philosophy. “That laid the foundation for the spirituality I try to express now; I feel a sense of belonging wherever I am. I try to be centered on my authentic self to feel, connect, think and act from that authenticity.”
Internal radar
all over the world, interest in business spirituality is on the rise. nyenrode’s associate professor sharda nandram, who has roots in suriname and india, on her sources of inspiration, the authentic self and what spirituality can do for business.
A
t the age of 19, Sharda Nandram left her native Suriname to study psychology in the Netherlands. In the course of her studies she started to investigate how human development is influenced by the way people are raised and by their innate characteristics – nurture vs. nature, in other words. But increasingly, she felt she was missing something.
by helm horsten
What are the deeper sources, she asked herself, that come with your religion, upbringing and education? “Inspired by my psychology studies, I carried on searching,” she says. “I was terribly homesick. My body was in the Netherlands, but my mind was still in Suriname.” So she went in search of her roots and followed the trail back to India, to her grandfather, who in
Kautilya amidst his disciples
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While working on her PhD thesis, Nandram also undertook a study in economics. “Economists think that you can always quantify the truth in figures. That is not the case. There’s also a human side to economics. When I started working at Nyenrode, I noticed that entrepreneurs have a soft side as well as a hard side. They have to make many decisions without sufficient information. That entails a high level of uncertainty. How do they deal with that? It’s very interesting to study how they make decisions. Have they got an internal radar, a kind of intuition? It struck me that entrepreneurs often say of their successes: ‘It just felt right; otherwise I wouldn’t have done it. But I need facts to back up my decisions, not so much for myself as for my stakeholders’.” “When Paul de Blot was appointed Professor of Business Spirit uality and I started working with him, I found the solution to the puzzle: I could connect economics and psychology through spirit uality.” She gives some examples: “An entrepreneur often works more than nine hours a day. You would only do that for something really important, something you believe in. Your belief and your vision come from a deeper internal source. The more you draw on this, the sharper you can define your aims. This allows entrepreneurs to make better choices. As human beings, we have more drives than just making money, for example the drive to create. Just look how happy children are with things they make from odds and ends. Altruism, the need to help others, is also a significant drive.” “People sometimes equate spirituality and religion,” Nandram continues. “To me, they are not the same. Religion is about man-made institutions, rules and rituals, while spirituality is about tapping a spring we all have within us. It is the connection that I continually try to create between my inner self and how I express it on the outside, thus allowing my authenticity to prevail in everything I think and do. In a knowledge economy, where information is available to everyone, that is very important.”
work. “Kautilya stated that you should focus on your talents. Not everyone can become a leader. Developing leadership is more than acquiring certain skills. It has to become part of your character. According to Kautilya, you’re a genuine leader if you also take care of your people. Your happiness and welfare as a leader depend on how you deal with them. It’s about finding a balance. He also talks about inner cleansing, which leaders need to do to remain stable and energetic. If leaders are not energetic, the people they work with won’t be so either.”
Voyage of discovery
Measuring spirituality
In her spiritual voyage of discovery, Nandram draws on her Indian roots for inspiration. “I am strongly influenced by the work of Sri Aurobindo (1872-1950), an Indian philosopher and freedom fighter who was educated in the West. He talks about an integrated approach I closely identify with. But I’m not just influenced by one way of thinking. With me, it’s always a matter of combining one thing with another. I do this with cultures, study aims and my search for solutions. I always look at issues from different angles. Thanks to Sri Aurobindo’s work, I feel recognition for the way I think about spirituality and the way I live.” Kautilya, the mentor of Emperor Chandragupta, who lived about 2,400 years ago, is another source of inspiration for Nandram. She has written a book about Arthashastra, his most important
Nandram admits that business spirituality and academic research are not always easy to reconcile. “There are two camps in the field of business spirituality. One says that its effect cannot be measured. You have to feel it. The other camp, to which I belong, says that there is something that can be measured. Even if you can’t measure the effect of spirituality on the inner self, you can measure its external effects. Research already indicates that at organizational level spirituality is very effective in terms of loyalty and satisfaction. Studies have also shown that the customers of companies with a spiritual atmosphere are more satisfied. This means that spirituality is not only good for the organization, but also for business.”
sharda nandram: «spiritualit y is about tapping a spring we all have within us»
Helm Horsten is the corporate editor of Nyenrode Business Universiteit. issue 1, spring 2012 • nyenrode now
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Global partners
The arrival of the visitors is timed to coincide with the end of the grape harvest. Of course the students enjoy tasting the excellent South African vintages, but Burger emphasizes that their studies come first. “It sounds sexier than it is. The students have some hard work to do here. First, they have to research the wine business – the whole value chain, from growing the grapes to marketing and sales. After that, they spend a full day at the winery with access to senior executives to enable them to draw up recommendations. All this is in addition to the subjects that are at the core of their MBA.”
Front runner
from china to the usa, from india to south africa – nyenrode is forging partnerships with institutions and individuals all over the world. four experts explain how business education is approached in the countries where they live and work.
by hendrina james and helm horsten
johan burger on south africa
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Engaging the world The University of Oregon has agreements – often in the form of an exchange – with more than 50 universities outside the US. Lundquist College is developing its own international network. It has partner universities all over Europe and Asia, although finding suitable partners in India is proving a challenge. De Kluyver also has plans to expand the network to South America, starting with Brazil. One way Lundquist exposes MBA students to Far Eastern business practices is a study tour entitled Engaging Asia, with stops in Beijing, Shanghai and Hong Kong. For internships, China is a popular destination as well. De Kluyver: “The opportunities we offer are based on matching supply and demand. Our interns provide added
Leadership stream That being said, Burger takes pride in USB’s place among the top three business schools on the African continent – the others are at the American University of Cairo and Cape Town University. What sets USB apart is its strong focus on leadership. “That’s what makes my heart beat faster. There are very few schools in the world where a leadership stream runs all the way through the programs. We look at leadership from multi-disciplinary viewpoints including ethics, finance and sustainability.” Though Burger is obviously aware of the value of an MBA, he points out that it is just a start. “Our students need to use what they have learned to develop their own view of the world. That’s why we encourage critical thinking.”
For Nyenrode’s Executive MBA students, a module in South Africa is one of the highlights of their program. Stellenbosch, in South Africa’s Western Cape, is known mainly for two things: its venerable university and the excellent wine made in the valleys that surround it. For the last few years, both these aspects have been enjoyed by Nyenrode’s Executive MBA students. It’s their good fortune that their program includes a module at the business school of the University of Stellenbosch (usually referred to as USB). The wine which has been made here since the late 17th century constitutes an integral part of the study program. Johan Burger, USB’s international programs director who composes the curriculum for the visitors from the Netherlands, has formulated a consulting assignment at a local winery, which benefits both parties. The assignment proved an immediate hit. It was given a re-run the next year and will again be on the agenda in March 2012. Burger explains the underlying thinking: “The wineries in this area are interested in both local and foreign business opportunities and improving the quality of their wines. But they’re often too close to their businesses to recognize the opportunities to diversify and streamline their operational model. The students help to provide an alternative view.”
In South Africa, USB is a front runner in terms of international ization. It has acquired both EQUIS and AMBA accreditation, and by 2013 an international module will be compulsory for all MBA students. China, India, France and of course the Netherlands are among the countries where they can choose to go. The school is determined to open its students’ minds to the world and strengthen South Africa’s place in global business education. Nonetheless, South Africa faces some major challenges. It has neither the stability nor the infrastructure that are a given in many other countries. Due to its location, its international exposure is limited. And while business schools in Europe and the US often have well established networks and traditions, their South African counterparts are still building them. Another point Burger makes is that it’s hard to get the required quality of students. “We lose a lot of potentially good students because they don’t finish school. And even with proper schooling, it’s a struggle to get a university education paid for. You have to live here to really understand the situation.”
Someone who is well placed to compare global academic thinking in different countries is Nyenrode alumnus Kees de Kluyver. After experiencing business schools in three continents in different capacities, he is currently dean of Lundquist College of Business at the University of Oregon. Until fairly recently, De Kluyver explains, business schools in the US were somewhat inward looking, even parochial. The shift to Asia of international business, however, has proved a strong catalyst for change. De Kluyver: “All top schools recognize that globalizing their curriculum is key in terms of competitive advantage, both for the students and the US as a whole. Most prominent institutions now equip students with some international experience. The most popular way of doing this is to send them abroad for an internship, while undergraduates often study abroad for a semester. In Asia, Singapore is an important focus. Almost all major American business schools are established there.”
«there are very few schools in t h e worl d wh ere a l ea der s h i p s t r e a m r u n s a l l t h e w ay through the programs»
kees de kluyver on the usa At the University of Oregon, a close encounter with American business education awaits Nyenrode’s MBA students. American universities have an impressive tradition of delivering business education – some of the best business schools in the world are across the Atlantic. But where international orientation is concerned, many of them still have some catching up to do.
« a m e r i c a n s f e e l a s s t r o n g ly a b o u t g i v i n g b a c k to t h e i r co l l e g e a s t h e y d o a b o u t g i v i n g to t h e c h u r c h »
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value for the companies, so it’s a two-way street. The secret of it all is that the program benefits as much as the individual student does.” Thanks to private funding, the Asian tour doesn’t cost the students a penny, and a number of Lundquist’s many alumni provide places for interns. De Kluyver is understandably proud of the alumni network. “It’s part of the US educational tradition to stay in touch with your college. If our alumni are successful in their careers, they feel an obligation to give back by supporting the next generation of students. They feel as strongly about this as they do about giving to the church on Sunday.” While the American way of raising funds may be a success story, De Kluyver also sees a number of challenges for US business schools. “Too often, delivering a business degree is primarily a classroom exercise. And American schools also lag behind Europe and Asia in terms of their online component. Because distance learning originated as a low-price alternative, it is still regarded with reservation. That’s a shame because, if done well, it can be an agent for change.”
Summer school in the US De Kluyver follows US practice by keeping in touch with Nyenrode, his alma mater. Close cooperation with rector magnificus Maurits van Rooijen has resulted in a two-week visit to Oregon this summer of some 80 International and Executive MBA students. Their curriculum, delivered in Portland and Eugene, has been drawn up by Lundquist’s Business Innovation Institute, which links up entrepreneurship and sustainability. Before long, De Kluyver expects to reciprocate by sending his own students to Nyenrode: “Maurits and I are committed to creating a strong partnership.” Although Lundquist and Nyenrode come from very different traditions, they have found each other in their drive toward further globalization. De Kluyver is pleased to note that, in the US, Lundquist is ahead of the curve. As for Nyenrode, he observes: “Its global orientation was, is, and forever should be its key strength.”
Unique experience
Logical choice
“Our primary focus is on offering education for executives,” Burgers continues. “At present, we are concentrating on creating a Chinese educational experience for students from abroad. Students from Nyenrode’s MSc in Management and International MBA have already visited us. When we have foreign students here, we aim to include an equal number of English-speaking Chinese students in the class, because it’s the interaction that makes the experience special. At present, no other educational institute in China can match this. Once we have established a brand name, we also want to offer our own degree programs.”
As well as being one of the initiators of NIMI, CEIBS was instrumental in forging NIMI’s partnership with Nyenrode. Burgers: “It felt quite natural to me that NIMI had to start from scratch, because CEIBS started out in much the same way. Since Nyenrode has been an important supplier of faculty for CEIBS, it was a logical choice for NIMI to work with them as well. My personal relationship with various people at Nyenrode was another key factor. The advantage of our partnership is that, as a private institute, Nyenrode has full control of its own operation. As a result, decisions can be made very fast. Our cooperation will also benefit from the fact that Nyenrode, like NIMI, is very good in entrepreneurial thinking.”
Diverse group The NIMI campus in Chengdu is one of the locations where the Executive Doctorate Program developed by Nyenrode will be delivered. While most of the professors come from Nyenrode, Englishlanguage classes will also be given by professors from elsewhere in Europe, China and the US. The program’s prime target group are executives who are already successful in their careers. They’ll be both Chinese executives who speak excellent English and foreigners wishing to enhance their stay in China by following this program. A very diverse group of people have already enrolled. For PhD programs of this type, distance need not be a concern. The participants do their research mainly at work and only need to be on campus three or four times a year for a week at a time. All modules are taken in China except for one, which is delivered at Nyenrode. The students defend their theses, graduate and receive their PhD titles at Nyenrode.
willem burgers on china
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A visiting professor explains how management education works in India. And an incubator exchange program now connects Nyenrode with the Indian Institute of Management in Ahmedabad. Professor Ramnath Narayanswamy is teaching business to the world. A welcome guest from Bombay to Birmingham and from Poona to Paris, he was singled out by the American journal Biz/Ed as one of the world’s key contributors to innovation in management education. When he’s at home, he lectures in economics and social sciences at the Indian Institute of Management (IIM) in Bangalore. Narayanswamy explains that India’s many IIMs, which are autonomous and often funded by the central government, are modeled on American business schools. “In the early days, we always looked to the US. That’s where the discipline first emerged and where it was conceptualized. We still have a strong connection with the US. The main difference is that our MBA students head straight for a management school after graduation, with very little work experience.”
Unique exchange A more surprising connection with an IIM is being forged at the level of the Nyenrode Business Accelerator. In December, Nyenrode’s Maurits van Rooijen and Pranay Gupta, CEO of the incubator of the IIM in Ahmedabad, signed an MOU to promote entrepreneurial interaction between the two institutes. Veera Raghavan of the Nyenrode Europe India Institute has the details. “In both countries, start-ups and SMEs want to explore opportunities abroad. We are looking for a balanced exchange. In principle there should be an Indian entrepreneur coming to us for every one we send to India. At Nyenrode, we are looking for candidates to work in India in the fields of food & agriculture and clean tech. In India we expect interest from the IT and internet fields, but we impose no limitation. We offer companies which are accepted office facilities, access to the Nyenrode business network, guidance and education.” Although the venture has yet to prove itself, Raghavan is already proud of one thing: “To my knowledge, there’s no other incubator exchange of this kind anywhere in the world. It’s a unique idea.”
Indian focus
Nyenrode has teamed up with the Nordic International Management Institute to deliver a doctorate program for executives in Chengdu, China. The recent birth of the Nordic International Management Institute (NIMI) was greeted with enthusiasm. At its cradle stood several professors of the China Europe International Business School (CEIBS), the local authority of Chengdu city and some local financiers. Together, they set out to establish a university that would offer programs measuring up to international standards. No institute of this kind existed anywhere in western China. “Chengdu is one of the fastest growing cities in the world,” NIMI’s Dean Willem Burgers observes. “In the next ten years a million new inhabitants are expected to settle in the north of the city, where we are located. Since the land became available in September 2010, the construction of the 32,000-square-meter NIMI campus has been going forward like an express train. We expect it to be completed as early as May 2012.”
ramnath narayanswamy on india
sities. There’s a lot of demand here for quality management education. I believe that any institute that can provide this in a way that’s relevant, market contestable and appropriate will be in business.” In March, Nyenrode’s IMBA class will have the opportunity to meet Narayanswamy in person as their visiting professor.
« n o ot h e r e d u c at i o n a l institute in china can offer f o r e i g n s t u d e n t s a n e q ua l number of chinese classmates»
Although they share the same name, each IIM has its own distinct character and specialization. Responding to local market demands, Bangalore, in India’s own Silicon Valley, offers a postgraduate program in software enterprise management in addition to one in general management and one in its original specialist field, public policy management. Narayanswamy emphasizes the strong Indian focus of IIM Bangalore’s Master programs. “After all, all top theorists are Indian. We are exploring a management model that can leverage Indian wisdom evolved through the centuries and use it in a corporate context. This could have a tremendous impact on the crisis we are facing. Markets don’t make good models or good ethics. That has to be done by humans, deliberately and consciously.” “In management we need a code of righteous conduct – the English translation for dharma – not just for India but for the world. Management education in India is currently in a watershed situation. There are huge opportunities but in recent years the landscape has changed substantially, with a lot of strategic alliances and partnerships. It’s only a matter of time before this spreads to the univer-
« w e a r e e x p lo r i n g a m a n a g e m e n t m o d e l t h at can leverage indian wisdom e vo lv e d t h r o u g h t h e centuries and use it in a co r p o r at e co n t e x t »
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our world center for cooperative financial services
Rethinking microf inance damien glez
even in a crisis, financial institutions can help to build a more cohesive world. what will the ideal bank look like in the future? and how can it help the maximum number of people? by steve korver
T
oon Bullens is in search of the ultimate globally oriented financial institution. It should be one that “supports economic, environmental and societal development – helping individuals directly, but also contributing to a civil society where individuals can exercise their basic rights and realize their ambitions.” Bullens is not an Occupy Wall Street radical, but a program director of Nyenrode’s freshly established Center for Cooperative Financial Services. He passionately believes that offering a full range of financial services can help to make the world a better place.
«we must set up more holistic systems linking yo u n g a n d o l d , t h o s e w h o can lend money and those w h o n e e d to b o r r ow »
“Financial institutions should relearn their role in society. If you see banking only as an instrument to earn money or generate interest, you underestimate the vital role it can play in creating societal cohesion. Friedrich Raiffeisen already showed this in 19th-century Germany by founding the first cooperative lending banks to support
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farmers. In this century, the Dutch pension system used the money it collected to build infrastructure – airports and railroads – which is bolstering the current economic situation.”
Big results from small loans Another acclaimed, more recent example has been the microcredit movement: giving small loans to people who have little or no collateral. Bullens had his ‘big wow’ about the future of micro in the early 1990s as an executive at the Dutch insurance firm Achmea. “In Sri Lanka, where my wife and I had adopted two lovely sons, I met a young widow who had just received US$50 from a life insurance policy. She felt incredibly blessed because she could now buy a sewing machine and start her own business making school uniforms.” Insurance – like credit, pensions and legal advice – is a service people in Western countries take for granted. Bullens’ big question became: how can we deliver these basic services to the world’s poorest populations in an economic and efficient way? The microfinance movement was jumpstarted in 1974 in Bangladesh when an economics lecturer, Muhammad Yunus, lent $27 to a group of women in an impoverished village. He later founded the self-sustaining Grameen Bank that has since loaned almost $10 billion to the world’s poorest. By the 1990s, microcredit had become one of the buzzwords of the international development community, which had come to see it as the answer to global poverty. Today over $25 billion is circulating in the micro circuit. New online platforms, such as Kiva, MYC4 and Zidisha, are connecting micro-lenders to microentrepreneurs via the web. Kiva and Grameen Bank are now even providing micro-loans to customers in the developed world. The current crisis has made many lose faith in financial institutions. Even micro-financing suffered a backlash over the last two
years, as its effectiveness was called into question and unforeseen consequences played out when different players entered the field. Bullens: “Things always go wrong. Trial and error is how we move forward – otherwise we’d still be using steam power. We have to accept these failures as part of the learning process, and apply the lessons to both legislation and the future management of micro-financial institutions.” He believes the lack of effectiveness was partly caused by the microcredits not being part of a bigger package, including pensions, insurance and conflict resolution through micro-justice. “We must set up more holistic systems linking the young with the old, those who can lend money with those who need to borrow. In particular, we must look at how we can connect them all together.”
Paradigm shift Maike de Groot, a Nyenrode PhD candidate working through the new Center, is investigating how legal institutions (laws, codes of conduct, customary rules, credit bureaus, credit rating agencies, property right rules, enforcement rules) affect microfinance initiatives in practice in sub-Saharan Africa. When it comes to fighting poverty in the 21st century, she believes we have to accept a few paradigm-shifting facts. “First of all, we have to get over the outdated Western idea that there is a developed world and a developing one. Each country, or even each community, has to deal with its own specific problems.” De Groot is inspired by Andrew Wolk, founder and CEO of the NGO Root Cause, who focuses on the power of ‘social impact markets’. “People don’t really believe in philanthropy any more, except for emergencies stemming from war or disaster. Instead of giving money away or just focusing on what types of services we should offer, we should act upon demand and address the problem together with local partners.”
For a solution to be truly effective, the local community must be directly involved. De Groot: “Someone once told me that the secret to a program’s success is implementing it with the financial commitment of the target group. If they believe in it enough to be willing to co-invest, then the chances of it failing become very small.”
Micro facilitator Both Bullens and De Groot see the need for a micro facilitator, which connects people, monitors ethical concerns and ensures that the ignorance of foreign initiators doesn’t cause more harm than good. De Groot: “They must be sensitive to the realities of other cultures and able to connect with local players who know how the people there think, and who then help find the partners and scenarios best suited to a particular area. I’m not sure if this facilitator has to be an institution – perhaps it could be a forum or network. We certainly don’t want unnecessary bureaucracy.” The Center for Cooperative Financial Services is not out to formulate one clear solution to save the world. “Research does not offer direct solutions. It can only produce knowledge which people in the field can perhaps use to more efficiently solve their problems,” says De Groot.
Call for partners Bullens, meanwhile, continues to look out for more partners and inspiring examples. “I’d like to put a formal call out to all Nyenrode NOW readers. We are looking for successful self-supporting cooperative ventures that help people realize their ambitions – be they economic, social or environmental. If you have an idea, please contact me at t.bullens@nyenrode.nl or call +31 6 5367 2798.” Steve Korver is a freelance writer and editor. www.stevekorver.com issue 1, spring 2012 • nyenrode now
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our world international ms c in accountancy
campus close-up
Accounting for the world nyenrode’s first english-language master in accountancy sets the tone for the future.
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he Netherlands is not an island. International trade is of vital importance to our nation. In this respect, the world of accountancy is no exception; we have to look beyond our borders. Many firms and their clients operate on an international scale and have to observe European or global regulations. Nyenrode’s current Dutch-language accountancy program is in fact more internationally oriented than one might think. For some
time, international rules and regulations have been incorporated in our programs. The books and papers we use are often in English, our methodology is international and we work more and more with visiting professors from abroad.
Benchmark But we can do more. The recommendations of a peer review team that visited us in connection with our EQUIS accreditation indic ated that our university’s accountancy and controlling programs should be more international. Nyenrode’s determination to stand for quality and offer a benchmark compared to other universities has given rise to the idea to develop an English-language program. A survey held last November among current BSc and pre-Master students in accountancy showed a definite interest in such a program. This is why we are kicking off the first edition of our International Master of Science in Accountancy in September. The new Master program will not replace the current Dutch program. It will be offered as an alternative, an extra service for students wishing to prepare themselves for an international career. The present curriculum, which already has an international com ponent, will form the basis for the new program. But for a subject like external reporting the focus will shift from the specific Dutch application of the regulations to a more international approach.
Module abroad Most of the students who positively responded to our questions also showed an interest in a study module at a foreign university. The accountancy firms employing them would like to see this module combined with an internship abroad. The Big Four audit firms (PwC, Deloitte, Ernst & Young and KPMG) already tend to do this, though only on a limited scale. If the study period abroad were to take the form of a limited number of weeks in the summer, that would make it easier to organize and coordinate with the accountancy firms. We are currently in the process of exploring the possibilities. We hope that our discussions with the University of Oregon in the US (see also p.21) will result in a successful partnership. Leen Paape is Dean of Nyenrode’s Degree Programs and Research.
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nyenrode now • issue 1, spring 2012
Beyond the moat
gert immerzeel
by leen paape
in times gone by, a succession of internationally oriented merchants resided at nyenrode. they set the tone for the global citizens using the estate today. by gert immerzeel
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nternationalization, the theme of this edition of Nyenrode NOW, has been one of Nyenrode’s strong points from the start. Through the centuries, inhabitants of the castle have extended their activities way beyond the borders of the Low Countries. The castle had barely been built when in 1360 the fearless knight Gijsbrecht II of Nijenrode went on a pilgrimage to Jerusalem – no mean feat in an age when travel was slow, exhausting and often dangerous. During the 80-Year War against Spain the aristocratic Van den Bongard family resided at Nyenrode. That they too had dealings with foreign lands is proved by several 16th-century coins, for example from the Duchy of Cleves, which were found in the moat surrounding the castle. During the Dutch Golden Age Johan Ortt, a wealthy textile merchant, rebuilt the castle, which had largely been destroyed. Ortt was an inveterate traveler and trader, who knew his way around Europe’s courts, castles and cathedrals. He is known to have visited rulers, bishops and marshals from Cologne to Rome and from Paris to Hanover.
For several centuries after Ortt’s death not much appears to have happened on the banks of the river Vecht. But then, in 1907, the coffee merchant Michiel Onnes bought the castle. Onnes not only supplied coffee to international customers, but also personally procured his beans from plantations as far afield as Brazil. During World War I he continued to sell coffee to Germany. Despite Dutch neutrality this led to the demise of his business. The next lord of the castle was another merchant, but he traded in merchandise of a different kind: he was the internationally renowned art dealer Jacques Goudstikker. His lavish life style, with friends and clients from all over Europe, came to an abrupt end when he fled the Nazi-occupied Netherlands in 1940. The name of the organization that took over Nyenrode after World War II reflected its global orientation. The founding of NOIB (now Nyenrode Business Universiteit), which groomed business leaders destined to go abroad, kicked off a period of increasing internationalization long before the global village became a fact of life. Gert Immerzeel is heritage manager at Nyenrode. issue 1, spring 2012 • nyenrode now
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