CEO Magazine - Volume 21

Page 1

2016

Global MBA Rankings Innovation Awards This issue: Delivery CEO21_OFC_Cover.indd 1

How to choose the MBA that suits you best

Business Education to Innovate and Lead 03/02/2016 18:19


CEO21_IFC_Ad - AMBA.indd 2

03/02/2016 18:55


CONTENTS

12

Table of Contents 12 How to Spot a Game Changer 14 Global MBA Rankings 2016

Annet Aris

CEO Magazine

CEO MAGAZINE

CEO21_003-011_Contents.indd 3

3

03/02/2016 18:20


CONTENTS

20 22

4

Risk & Reputation: Digital Economy Karen Robb and Wendy Nicholls

Innovation Awards CEO Magazine

CEO MAGAZINE

CEO21_003-011_Contents.indd 4

03/02/2016 18:20


CEO21_005_Ad - AIB.indd 5

03/02/2016 18:21


CONTENTS

24 26

The Need for Entrepreneurial Leadership Randel S. Carlock

Why are there More Male Entrepreneurs than Female Ones? Knowledge@Wharton

32

6

CEO MAGAZINE

CEO21_003-011_Contents.indd 6

03/02/2016 18:20


CEO21_007_Ad - Columbia.indd 7

03/02/2016 18:21


CONTENTS

8

32

Business Education to Innovate and Lead

TUM School of Management

36

What CEOs Need to Lead in an Uncertain and Hyper-Connected World

Sa誰d Business School and Heidrick & Struggles

CEO MAGAZINE

CEO21_003-011_Contents.indd 8

03/02/2016 18:20


CONTENTS

40 38

Why is the 12 Month MBA the most popular in Australia? Australian Institute of Business

40

Boost your career! How to choose the MBA that suits you best Business School Netherlands

CEO MAGAZINE

CEO21_003-011_Contents.indd 9

9

03/02/2016 18:20


CONTENTS

46

10

46 48

Tactics and Values Steve Gates

List of Contributors

CEO MAGAZINE

CEO21_003-011_Contents.indd 10

03/02/2016 18:20


CONTENTS

2016

Global MBA Rankings Innovation Awards This issue: Delivery

How to choose the MBA that suits you best

Business Education to Innovate and Lead

Š 2016 All rights reserved. No part of this publication may be reproduced without the expressed approval of the copyright owner. Whilst every effort has been made to ensure the accuracy of the information in this publication, the Publisher accepts no responsibility for errors or omissions. The Publisher disclaims responsibility for the views and opinions expressed herein by the contributors. Furthermore, the Publisher does not give any warranty regarding the accuracy thereof.

CEO

Victor J. Callender

Group Editor-in-Chief

Alexandra Skinner

Designer

Matt Dettmar

Financial Controller

Anthony Gordon

Head of Production

Steven Whitaker

Features Writer

Amber Callender

Telephone: Fax: Email: Web:

+44 (0) 870 067 2077 (UK) +44 (0) 870 067 2078 (UK) a.skinner@ceo-mag.com www.ceo-mag.com

Follow us on Twitter: @CEO_MAG

CEO MAGAZINE

CEO21_003-011_Contents.indd 11

11

03/02/2016 18:20


ENTREPRENEURIAL LEADERSHIP

The Need for Entrepreneurial Leadership Entrepreneurship is not just for startups. It’s a lens through which all organisations should view strategy and leadership in the 21st century to address societal problems. Randel S. Carlock

M

anagement theories come about in response to particular problems. At the turn of the 20th century, the most notable organisations were large and industrialised and carried out routine tasks to manufacture a variety of products. This led Frederick Taylor to develop the scientific management theory, which advocated optimising tasks by breaking big complex jobs into small ones, measuring what workers did and linking pay to performance. Management practice of that era was designed to seek out efficiencies, improve productivity and make “the trains run on time.” Theory started to evolve by the 1930s, when unions began to reject the dehumanising effects of earlier practices. This formed the beginning of the human relations movement when researchers started realising that treating people nicely was even better for productivity. These management theories, however, have a disadvantage in today’s business world. They were founded on the assumption of stable environments and the preeminence of shareholder value as a central motivation in business. They work poorly in more dynamic environments where creating stakeholder value is equally, if not more, important.

12

Filling the gaps I would posit that entrepreneurial leadership will (and should) define the next era of management theory. Entrepreneurs have always existed to improve society by spotting gaps and filling them. Henry Ford’s mass market automobile made travel exponentially more efficient and comfortable. The iPhone put a portable computer in our pockets,

CEO MAGAZINE

CEO21_012-013_INSEAD.indd 12

03/02/2016 18:22


ENTREPRENEURIAL LEADERSHIP

Entrepreneurship in its different forms is a continuum of behaviours related to strategy and leadership often driven by organisational life cycles.

From health care to the environment to education, governments are facing budget constraints that leave many citizens underserved. The need for entrepreneurial ideas and strategies to address this shortfall has never been greater. Furthermore, business leaders already have to grapple with new strategies for growth, innovation, regeneration and turnarounds, whether they’re in start-ups or multinational companies. Therefore, all organisations require entrepreneurial mindsets and entrepreneurial leaders. An executive MBA elective I teach is designed to demonstrate that start-ups, family businesses, innovation, and social ventures all fit under the entrepreneurship umbrella. Students wear the shoes of an entrepreneur growing a venture, a corporate executive faced with innovation challenges and family business leaders challenged by succession and next generational issues.

Entrepreneurship as a continuum

giving us information on demand. Entrepreneurs today are going one step further, from addressing market opportunities to addressing market failures. James Chen’s new venture, Adlens, which aims to provide adjustable and affordable spectacles to the sight challenged, with goals of eventual profitability, is one such example. It has a related social venture, Vision for a Nation, which aims to make the glasses available in the developing world. Ninie Wang, an INSEAD alum and CEO of Pinetree Care Group, is another. She addresses the urgent need of home care for the aged in China who have been left behind by their migrating children and a government healthcare system starting to feel the strain of an ageing population. Her latest innovation is automated in-home healthcare systems that can put them in touch with doctors, nurses, nutritionists and even their own children.

Entrepreneurship in its different forms is a continuum of behaviours related to strategy and leadership often driven by organisational life cycles. The challenge for all organisations is sustainability based on creating value for stakeholders. I teach my students that there are four entrepreneurial contexts, which require different types of entrepreneurial leadership and strategies. 1. Achieving organisational innovation: This requires leaders to strengthen the alignment between strategy and culture by providing leadership that enables creativity and change. 2. Starting a new venture: Leaders need to be more hands on, identifying new opportunities and engaging teams and investors. They have to operate differently to big organisations by low-cost probes, teams and partnering. They have to be flexible and closer to customers and aim at ensuring the venture survives. 3. Social ventures: The main purpose is meeting the unaddressed social or economic need. Leaders in social ventures should spend more time on partnerships, developing relationships

with community, government, NGOs and foundations. Funding is less conventional, coming from a combination of sources including sales of products and services, government and NGO grants and project loans with social impact as the main aim. 4. Family enterprise: Leaders in this environment have to focus on the parallel planning of the family and business to ensure a successful transition to the next generation. They’re backed by family values and capital and have the ability to play the long game. Ultimately, their aim is to grow the family capital, be it economic, emotional, social or spiritual. The challenge for management educators is to teach managerial practices that focus on entrepreneurial strategy and leadership that can be applied across a range of organisational contexts. It’s clear that new approaches are needed and the evidence suggests that entrepreneurship in most organisational contexts works. From 3M’s flexible attention policy, allowing 15 per cent of budgets to pursue personal projects, or the Ford family quarterly shareholders meeting to consider the future, or James Chen’s team struggling with disruptive technology to improve peoples’ sight, entrepreneurial leadership is central to growth and social impact in the 21st century. Courtesy of INSEAD Knowledge.

Biography  Randel S. Carlock is Senior Affiliate Professor of Entrepreneurship and Family Enterprise and the Berghmans Lhoist Chaired Professor in Entrepreneurial Leadership at INSEAD. He was the first academic director of the Wendel Centre for Family Enterprise and is the director of The Family Enterprise Challenge, an Executive Education programme for family business leaders.

CEO MAGAZINE

CEO21_012-013_INSEAD.indd 13

13

03/02/2016 18:22


GLOBAL MBA RANKINGS 2016

2016 MBA Rankings Regardless of whether you’re pursing an MBA to broaden your current skill set, climb the ladder or launch a start-up, it’s probably safe to say that you’ve done a lot of thinking, weighing and measuring: time, money, effort, outcomes etc. So, having decided to take the plunge, all you have to do now is choose the right school which, in theory, shouldn’t be that difficult. If you have an idea of the delivery you’re looking for (full-time, part-time etc.), the budget you have to work with, and the geography you’d consider (see our MBA search tool at www.ceo-mag.com) you’ve gone some way to narrowing the field, which is a great start. However, not all MBAs are created equal, which makes putting together a shortlist a lot more challenging, but this is the point at which we can help.

14

We look beyond the marketing brochures and ad campaigns and examine the nuts and bolts of an MBA: the learning environment, class sizes, tuition fees, faculty, delivery methods, international diversity, gender make-up and more. Our objective is simple: to identify schools which marry exceptional quality with great ROI. The results, or ‘rankings’ as we call them, can be viewed overleaf, and should help to provide that quality benchmark.

CEO MAGAZINE

CEO21_014-018_MBA Rankings.indd 14

03/02/2016 18:41


GLOBAL MBA RANKINGS 2016

NORTH AMERICAN MBA RANKINGS TIER 1

University of Connecticut

American University: Kogod

University of Delaware: Lerner**

Auburn University

University of Hawaii – ​Manoa: Shidler

Boston University: Questrom

University of Louisiana – Lafayette: Moody

Bryant University

University of Massachusetts – ​Boston

California State University – Chico

University of Massachusetts – ​Lowell

California State University – ​Long Beach

University of Michigan – Flint

California State University – ​San Bernardino

University of North Carolina-Charlotte: Belk**

California State University-East Bay

University of Oklahoma: Price

Case Western Reserve University: Weatherhead

University of Oregon: Lundquist

Chapman University: Argyros

University of Pittsburgh: Katz

College of William and Mary: Mason**

University of Richmond: Robins

Colorado Technical University

University of South Florida: Muma

Drexel University: LeBow**

University of Tampa: Sykes* **

Florida International University

University of Texas – Dallas: Jindal

Fordham University

University of Utah: Eccles

Georgetown University: McDonough

University of Vermont: Grossman

Georgia State University: Robinson

University of West Georgia

Gonzaga University

University of Wisconsin – Milwaukee: Lubar

HEC Montreal

Virginia Commonwealth University

Hult International Business School

Virginia Tech: Pamplin

Jacksonville University

Willamette University: Atkinson

Kennesaw State University: Coles Kent State University Loyola Marymount University Loyola University Chicago: Quinlan Lynchburg College

NORTH AMERICAN MBA RANKINGS

Marquette University

TIER 2

Mercer University – Atlanta: Stetson

Appalachian State University

Millsaps College: Else

Boston College: Carroll* **

Niagara University

Bowling Green State University

Northern Illinois University

Cleveland State University: Monte Ahuja

Pepperdine University: Graziadio

Fairfield University*

Purdue University – West Lafayette: Krannert* **

Iowa State University

Queens University of Charlotte

Northwest Missouri State University

Rensselaer Polytechnic Institute: Lally

Oakland University

Rochester Institute of Technology: Saunders

University of Akron

Seattle University: Albers

University of Baltimore*

Saint Joseph's University: Haub

University of Florida: Hough

Saint Mary’s College: School of Economics & Business Administration

University of Kentucky: Gatton

Temple University: Fox

University of Nebraska – Lincoln

Texas A&M University – College Station: Mays

University of Nevada – Las Vegas: Lee

Texas Christian University: Neeley

University of North Carolina – Wilmington: Cameron

University of Alberta

University of Notre Dame: Mendoza* **

University of California at Berkeley: Haas

University of Washington: Foster

University of California at Davis

Wake Forest University

University of California – San Diego: Rady

Washington State University: Carson

University of Cincinnati: Lindner University of Colorado – ​Colorado Springs

*Data for professionally qualified faculty unavailable **Data for faculty currently employed in industry unavailable CEO MAGAZINE

CEO21_014-018_MBA Rankings.indd 15

15

08/02/2016 11:18


GLOBAL MBA RANKINGS 2016

EUROPEAN MBA RANKINGS

ONLINE MBA RANKINGS

TIER 1

RANK

SCHOOL

REGION

Aston Business School

1

EU Business School

Europe

Audencia Nantes

2

SBS Swiss Business School

Europe

Birmingham Business School

3

UBIS

Europe

Brunel Business School

4

Durham University Business School

Europe

Business School Netherlands

=5

Queens University of Charlotte

North America

Carlos III University of Madrid

=5

HHL Leipzig Graduate School of Management

Europe

Copenhagen Business School

=5

Australian Institute of Business

Australia

Durham University Business School

=6

IE Business School

Europe

École des Ponts Business School

=6

The Open University

Europe

ESADE Business School

7

University of Utah: Eccles

North America

EU Business School

8

Temple University: Fox

North America

HHL Leipzig Graduate School of Management

9

CENTRUM Católica Graduate Business School

South America

IE Business School

10

Aston Business School

Europe

IESE Business School

=11

Pepperdine University: Graziadio

North America

ISEG Lisboa School of Economics & Management

=11

Audencia Nantes

Europe

LISBON MBA

=12

Georgia WebMBA

North America

MIP Politecnico di Milano

=12

Jack Welch Management Institute

North America

Porto Business School

=12

Rochester Institute of Technology: Saunders

North America

SBS Swiss Business School

=13

University of Massachusetts-​Lowell

North America

Solvay Brussels School of Economics and Management

=13

Griffith University

Australia

Toulouse Business School

14

Colorado Technical University

North America

Trinity College Dublin School of Business

15

California State University, San Bernardino

North America

UBIS

=16

Mercer University-Atlanta: Stetson

North America

=16

Saint Mary’s College: School of Economics & Business Administration

North America

University of Liverpool Management School

17

Deakin University

Australia

University of Sheffield Management School

18

Saint Joseph's University: Haub

North America

19

RMIT University

Australia

=20

University of Cincinnati: Lindner

North America

=20

MIP Politecnico di Milano

Europe

=20

Central Queensland University

Australia

=21

University of Colorado-​Colorado Springs

North America

AUSTRALIAN MBA RANKINGS

=21

Washington State University

North America

22

University of Delaware: Lerner**

North America

TIER 1

23

University of Texas-​Dallas: Jindal

North America

1

Australian Institute of Business

24

Florida International University

North America

2

Victoria Graduate School of Business

25

Drexel University: LeBow**

North America

3

University of Wollongong Sydney Business School

26

University of Baltimore*

North America

4

University of Southern Queensland

27

University of Nebraska – Lincoln

North America

=5

Central Queensland University

28

Auburn University

North America

=5

Griffith University

29

University of Florida: Hough

North America

6

RMIT University

30

Cleveland State University: Monte Ahuja

North America

7

Deakin University

31

Northwest Missouri State University

North America

University of Amsterdam University of Exeter

*Data for professionally qualified faculty unavailable **Data for faculty currently employed in industry unavailable

16

CEO MAGAZINE

CEO21_014-018_MBA Rankings.indd 16

08/02/2016 11:18


CEO21_017_Ad - TUM.indd 17

03/02/2016 19:01


GLOBAL MBA RANKINGS 2016

Global EMBA Rankings TIER 1

SBS Swiss Business School

Europe

AIX Marseille Graduate School of Management

Europe

Solvay Brussels School of Economics and Management

Europe

Auburn University

North America

Saint Joseph's University: Haub

North America

Audencia Nantes

Europe

Australian Catholic University

Australia

Saint Mary's College: School of Economics & Business Administration

North America

Boston University: Questrom

North America

Stockholm School of Economics

Europe

California State University-​Long Beach

North America

Technische Universität München (TUM)

Europe

California State University-East Bay

North America

Temple University: Fox

North America

Case Western Reserve University: Weatherhead

North America

Texas A&M University-​College Station: Mays

North America

South America

Texas Christian University: Neeley

North America

Chapman University: Argyros

North America

Trinity College Dublin School of Business

Europe

College of William and Mary: Mason**

North America

UBIS

Europe

Copenhagen Business School

Europe

University of Alberta*

North America

École des Ponts Business School

Europe

University of California at Berkeley: Haas

North America

ESADE Business School

Europe

University of California-San Diego: Rady

North America

EU Business School

Europe

University of Exeter

Europe

Florida International University

North America

University of Hawaii-​Manoa: Shidler

North America

Fordham University

North America

University of Kentucky: Gatton

North America

Georgetown University: McDonough

North America

University of Nevada-Las Vegas: Lee

North America

Georgia State University: Robinson

North America

University of Oklahoma: Price

North America

HEC Montreal

North America

University of Oregon: Lundquist

North America

HHL Leipzig Graduate School of Management

Europe

University of Ottawa: Telfer

North America

Hult International Business School

North America

University of Pittsburgh: Katz

North America

IE Business School

Europe

University of South Florida: Muma

North America

IESE Business School

Europe

University of Texas-​Dallas: Jindal

North America

IfM Institut für Management

Europe

University of Utah: Eccles

North America

Jacksonville University

North America

University of Washington

North America

Kedge Business School

Europe

University of Wisconsin-Milwaukee: Lubar

North America

Kennesaw State University

North America

University of Wollongong Sydney Business School

Australia

Kent State University

North America

Virginia Commonwealth University

North America

Lorange Institute of Management

Europe

Washington State University

North America

Loyola Marymount University

North America

TIER 2

Maastricht University

Europe

Bowling Green State University

North America

Marquette University

North America

Cleveland State University: Monte Ahuja

North America

Mercer University-Atlanta: Stetson

North America

Drexel University: LeBow**

North America

Millsaps College: Else

North America

Loyola University Chicago: Quinlan

North America

MIP Politecnico di Milano

Europe

Oakland University

North America

Northern Illinois University

North America

Seattle University: Albers

North America

Pepperdine University: Graziadio

North America

University of Connecticut

North America

Porto Business School

Europe

University of Florida: Hough

North America

Queens University of Charlotte

North America

University of Louisiana-​Lafayette: Moody

North America

RMIT University

Australia

University of Notre Dame: Mendoza* **

North America

Rochester Institute of Technology: Saunders

North America

University of Tampa: Sykes* **

North America

Rutgers Business School

North America

Virginia Tech: Pamplin

North America

CENTRUM Católica Graduate Business School

*Data for professionally qualified faculty unavailable **Data for faculty currently employed in industry unavailable

18

CEO MAGAZINE

CEO21_014-018_MBA Rankings.indd 18

08/02/2016 11:18


CEO21_019_Ad - ISEG.indd 19

03/02/2016 18:42


DIGITAL ECONOMY

RISK & REPUTATION:

Digital Economy The digital world is evolving rapidly and regulation is running to catch up, often tripping up organisations in the process, For example, the January 2015 changes to the ‘place of supply’ rules have introduced new challenges for those operating in the digital economy. In this viewpoint, we look at how the changing digital environment is affecting business operations, from tax and business risk to performance improvement and corporate finance. It will also consider how companies can be proactive in addressing these challenges to make the most of the new opportunities presented. Karen Robb and Wendy Nicholls, Grant Thornton Tax and the digital economy

this same research reveals that the UK economy

Technological advancements and digital

could receive a £92 billion boost if firms fully

continues to evolve, how should a company

capabilities are transforming the global

develop their digital potential.

navigate its tax affairs and their risks?

operated in niche markets have now become

Taxing but not fit for purpose

Managing tax affairs

established household names. The Government

While these digital developments have

The biggest change to the international tax

estimates that the global digital services

undoubtedly created substantial growth, the

regime is the base erosion and profit shifting

market will be worth as much as the entire

accompanying tax regime is not fit for purpose,

(or BEPS) project led by the Organisation

UK economy by 2020. However, the ability of

especially for those businesses that also have an

for Economic Cooperation and Development

governments around the world to tax companies

international presence. As a result, there have

(OECD) and the G20 group of industrialised

in this new online marketplace has not kept

been several high profile examples of companies

nations. The changes recommended under

pace. As a result, some companies have found

that have become embroiled in tax issues that

BEPS aim to align taxing rights with relevant

it challenging to comply. But what can they do

have significantly impacted their reputation.

value-adding activity, improve transparency,

economy. Specialist online companies that once

to ensure that they operate within the letter

In this new economic environment, we have

and spirit of the law while also meeting public

seen a trend towards tax authorities around

expectations and protecting their reputation?

the world moving away from direct taxes

The digital economy has been firing on all

But, as the international tax environment

and curb avoidance. It will fundamentally alter international tax rules. The first action (one of 15 in total) looked

(such as corporation tax) to indirect taxes (like

at the digital economy. Whilst it concluded

cylinders over the last two decades largely

VAT). Ultimately, to catch digital transactions

that nowadays the ‘digital economy’ is simply

led by improving access to broadband and the

and ensure governments’ collect their ‘dues’,

‘the economy’, and does not require a separate

increasing prevalence of smartphones. Here in

authorities are moving towards a system where

regime, the report in action one recommended

the UK, the think tank the National Institute for

the consumer bears the cost. This serves the

a new approach to indirect taxes. This report

Economic and Social Research, estimates that

purpose of increasing money into government

indicates that best practice is for VAT to

the digital economy is 40 per cent larger than

coffers and has an additional benefit of boosting

be collected where a business’ customers

previously thought and comprises more than

competitiveness – reducing direct taxes reduces

(consumers or organisations) are based,

1.8 million firms. From architecture to aviation

the costs of doing business, creating a more

and not where the supplier is based – similar to

and publishing to printing, there are few areas

attractive environment for growth. In the UK

the changes put in place across the EU earlier

of the economy that are not online. Recent

for example, by 2020 corporation tax will be 18

this year.

research by Oxford Economics and Virgin

per cent, which, by historical standards, is very

Media Business shows that digital capabilities

low. To compensate for reductions in direct taxes

businesses operating in the digital space,

generated £123 billion in business revenues,

however, VAT has increased from 17.5 per cent to

of which complying with VAT regulations

equivalent to 3.4 per cent of GDP. What’s more,

20 per cent.

around the globe is only one issue. For example,

This creates plenty of challenges for

how do you establish where a customer is

The digital world is evolving rapidly and regulation is running to catch up, often tripping up organisations in the process. 20

located, and how can you keep a record of this for the statutory 10 years without falling foul of data protection laws? How should you price a digital download, now that the VAT rate will be different for each customer?

CEO MAGAZINE

CEO21_020-021_Digital Economy.indd 20

03/02/2016 18:42


DIGITAL ECONOMY

In addition to the indirect tax aspects,

There will be follow up work and monitoring

reputational risk is high for those companies

companies will no longer be able to claim

until 2020, at which point further tax changes for

that don’t keep up. Employees, customers

‘auxiliary or preparatory’ exemptions from

digital businesses may follow. In the meantime,

and the general public now expect more from

having a direct tax presence in a country if

the OECD and G20 recognise that some countries

businesses. While tax is a cost of doing business,

such activities or assets are central to the

may wish to go further and bring in unilateral

multinationals are expected to pay their

company’s operations. For example, a company

measures. These could include seeking to tax a

‘fair share’. This is a subjective area, and the

such as Amazon will not be able to claim a tax

digital ‘nexus’ (taxable presence) locally, a digital

complexity of the tax rules means it is difficult

exemption for warehouses in the UK as they

withholding tax or some sort of ‘equalisation levy’.

to judge what is too little and what is too much.

are crucial to the business's ability to deliver

This is seen by many as unhelpful, and a stronger

It is also important for groups to review and

its products in the UK. BEPS also puts an

steer against measures that a digital transactions

model the impact of the new rules on digital

end to organisations claiming exemptions if

tax had been hoped for.

sales, given the amplified risks of ‘getting it

contracts were not concluded in that country.

wrong’ and the potential detrimental impact

This rule enabled multinationals to escape local

Unilateral measures

taxability tax even if their people, headquarters

While BEPS seeks to establish a common

and consumers were based in country, provided

framework for international business, companies

that contracts were concluded elsewhere. Now,

should remain aware of local developments in

Conclusion

if companies go 99% along the road of agreeing

the countries in which they operate.

The digital economy is redefining the UK and

a deal, they will be taxable. In the case where

The effect of some countries bringing in their

on reputation. Company boards also need to be aware of tax in a way they never had to before.

global marketplace and governments (and their

a member of local staff habitually plays the

own provisions could be a period of uncertainty,

tax systems) have often struggled to keep up.

principal role on the conclusion of contracts

additional cross-border tax disputes, and

However, new rules and regulations are being

that are routinely concluded without material

double taxation. For example, in April this

implemented that seek to capture these profits

modification, their activities will represent a

year, the UK government implemented a

closer to where the value is generated and

taxable presence locally.

diverted profits or ‘Google tax’ for companies

ensure digital businesses are paying their fair

that move their profits overseas to avoid tax.

share. Companies should proactively understand

recommendations, BEPS brings in a

Under the new regime, companies with an

the new tax regime and ensure they operate

multilateral instrument which, once

annual turnover of £10m will have to tell HM

both within the spirit and letter of the law and,

agreed, should ensure that all tax treaties

Revenue & Customs (HMRC) if they think their

crucially, they must consider public opinion and

are amended in the same way. This is an

company structure could make them liable for

the associated impact on reputation.

important development as without the

diverted profit tax. Once HMRC has assessed

overarching agreement and political will,

the structures, and decided how much profit

amending individual treaties would simply

has been artificially diverted from the UK,

take too long. What’s more, in October, the

multinationals have 30 days to object or be

latest recommendations were endorsed by G20

subject to a 25 per cent tax on these profits.

In addition to these specific

finance ministers in advance of the G20 leaders' meeting in Turkey in November, renewing their

What should companies do now?

commitment for swift, extensive and consistent

As can be seen, the tax landscape has changed

implementation of the rules.

dramatically in the last few years, and the

Biography  Wendy Nicholls and Karen Robb are Partners at Grant Thornton UK LLP, one of the world's leading organisations of independent assurance, tax and advisory firms.

CEO MAGAZINE

CEO21_020-021_Digital Economy.indd 21

21

03/02/2016 18:42


CEO MAGAZINE INNOVATION AWARDS

INNOVATION AWARDS 2016 INNOVATION IN

Alexandra Skinner

T

here are a lot of very good business schools out there, as evidenced by our MBA rankings, but what sets apart the great schools? When you can boast world class faculty, unparalleled research capabilities, and networking opportunities that open doors to the upper echelons of industry, what's left? Well, what we do know about the very best schools in the world is that they tend to be highly innovative. So, in considering innovation as a point of difference when looking through the prism of technology, delivery, sustainability and entrepreneurship, the ‘CEO Magazine Innovation Awards’ celebrate those schools which have successfully created new ideas, processes and, in some cases, products which, when implemented, have led to positive, effective change.

DELIVERY In this issue we look at those schools turning programme delivery on its head. And the winners are:

Imperial College Business School

Warwick Business School Online MBA programme Whilst the programme offers complete flexibility through its online delivery mode, the international study groups (approximately

Global Online MBA:

10 per group) that students are placed in at

The Hub Virtual Learning Platform

the beginning of the programme, and stay in

Imperial College has created a clean, engaging

throughout the course, remove the sense of

and easy-to-use interface that fosters a sense of

isolation that distance learning can create

community. The smaller details are, in part, where

and provide the basis for deeper connection

this platform excels, helping students to stay on

and integration.

track by providing excellent visual cues and tools. The use of myriad delivery methods

Aside from academic rigour, what makes this programme decidedly different from other

(video, live classes, discussion, reading etc.)

online MBAs is the emphasis that is placed

and external applications, like Google

upon students’ sharing experiences, solving

Hangouts, add additional layers of functionality

problems together, and motivating one another

that keep the user engaged and further

– very ‘bricks and mortar’.

strengthen student integration.

If speed is the order of the day, students can complete the programme more swiftly by taking

The ‘CEO Magazine Innovation Awards’ celebrate those schools which have successfully created new ideas, processes and, in some cases, products which, when implemented, have led to positive, effective change. 22

some or all of their elective modules face-toface in five-day residential blocks.

Pennsylvania State University Online MBA programme Two, one-week residency components, the first at a prominent U.S. firm engaged in the analysis of its organisational structure

CEO MAGAZINE

CEO21_022-023_Innovation Awards.indd 22

03/02/2016 18:42


CEO MAGAZINE INNOVATION AWARDS

and strategy, and the second on-campus participating in a team business simulation, offer two vital components often missing from online programmes: student integration and real-world ‘live’ applied learning. As an added bonus, the School will order and deliver books and course materials to students, and complete their registration for all courses.

University of Chicago: Booth Executive MBA The first and only business school with permanent campuses in North America, Asia, and Europe. The EMBA programme starts and ends at the Rockefeller Chapel in Chicago, via London and Hong Kong, exposing students to a diverse cohort unrestricted by national borders.

University of Virginia: Darden

The OneMBA

Global MBA for Executives

Designed by five international business schools,

Not your average EMBA, each of Darden’s

the OneMBA is unique. Students select a ‘home

six terms are anchored by a two-week

university’ based upon their location, and attend

international residency, or Global Leadership

classes at that university every four to six weeks.

Exploration, in a location selected to create the

However, over the course of the 21-month

optimal learning experience for the courses

programme, participants from all partner

being delivered.

schools have the opportunity to connect with

The aforementioned field experiences and

one another on four global residencies spanning

non-classroom activities expose students

seven to eight days. With residencies in the

to new territories, cultures, norms and

United States, Europe, Latin America, and Asia,

institutions and, in so doing, bring to life

the OneMBA is certainly global.

the academic learning taking place in the classroom. Between residencies, approximately one-

Durham University Business School Online MBA

third of the EMBA’s coursework is delivered

Durham’s state-of-the-art virtual learning

through distance learning in the form of live

environment offers everything you would

classes, virtual learning team meetings and

expect from an online MBA, however, by

integrated work projects.

offering the option of residential block taught

Duke: Fuqua School of Business

modules, an international study opportunity, on-campus or online induction, and Summer

Global Executive MBA

School (two weeks of on-campus block-taught

Offering one of the wold’s most expansive

modules), Durham, through its delivery,

EMBA programmes, in terms of geography,

flexibility and innovation, manages to blur the

Duke’s 15-month Global Executive MBA

lines between online and on-campus delivery.

curriculum is divided into five mandatory terms composed of two residencies on its main campus in Durham, NC, and three terms which include residencies in selected regions around the world. Each of the international residencies are divided between two cities. After each residency, students transition into

Notable Mentions  University of the Sciences  International University of Monaco  Georgia WebMBA

a two month distance-learning module. CEO MAGAZINE

CEO21_022-023_Innovation Awards.indd 23

23

03/02/2016 18:42


INNOVATION & ENTREPRENEURSHIP

How to Spot a

GAME CHANGER Four essential questions for predicting whether an invention will really change our lives.

Annet Aris

N

owadays hardly a week goes by without the announcement of yet another new technological development promising to make our lives easier, more exciting or at least healthier. Examples include Apple's smart home technology for operating domestic appliances, Japanese robots able to read emotions for the elderly, wearable activity trackers like Fitbits and Fire, Amazon's smart TV adapter for connecting TVs to the internet.

24

The big question for investors and venture capitalists, as well as incumbent companies which might be threatened by these inventions, is which of these is a real “game changer”? In other words, a technology like the iPad that rapidly comes into common use and changes our day-to-day lives. We’ve been hearing about smart home technology for at least ten years, but it still hasn’t really

caught on. And, apart from the Furby, we humans just don’t seem to be able to get on so well with robots. However, more and more people are now linking their TVs to the internet. So, can we separate the wheat from the chaff and predict when our lives are set to be revolutionised by new technology? Who should we be listening to? To the overenthusiastic gurus, or to the cynics claiming “It’ll never catch on”? For business, both are dangerous because being a first mover in the market can cost just as much as missing the boat altogether.

CEO MAGAZINE

CEO21_024-025_INSEAD A.indd 24

03/02/2016 18:43


INNOVATION & ENTREPRENEURSHIP

Asking the right questions

The rule of thumb is...

Based on my observations over the past ten years and the academic work of several colleagues, I would suggest that predicting whether a new invention is going to change the game means answering four fundamental questions:

A rule of thumb for me has always been to look and see what teenagers are doing in their leisure time. Anything that fits in well with their lives has a good chance of succeeding. Take, for example, easy communications (WhatsApp), showing yourself in a good light (Facebook), being the first to get the latest news (Twitter), looking things up easily (Google), and also being able to keep things secret (Snapchat). All things that we also secretly consider important, but that teenagers openly rave about. People like automation and smart technologies so that they can free up their time, but delegating too much to machines can leave us feeling useless. A smart home system that can think for itself and replace us can often seem more of a threat than a temptation. New technology also needs to be better than what is already on the market, otherwise it’s not worth learning how to use it. That’s why mobile payment systems haven’t really taken off in the developed world where we’re used to smoothly functioning debit and credit cards. They have, however, made huge inroads into many developing economies where the absence of a full

 1. Does the new technology meet a fundamental need?  2. Is it easy to use?  3. Is it affordable?  4. Is the right ecosystem in place? Only if you answer “yes” to all four questions is there a good chance an invention is going to be a “game changer”. A good example of this is mobile internet, the first iteration of which was the WAP phone, which met a need but wasn’t easy to use, affordable or part of an ecosystem. Mobile internet only really took off after the launch of the intuitive iPhone, along with fixed, low mobile data tariffs and an open ecosystem for application developers. It is vital to make sure you get the right answer to each of these four questions. When does something really meet a need? That’s where most technical whizzes go wrong as their needs aren’t necessarily the same as ours. As a general rule, the closer something comes to our basic instincts, the higher the chances it will really catch on.

As a general rule, the closer something comes to our basic instincts, the higher the chances it will really catch on.

service banking system and payment infrastructure makes the ability to pay by phone a real benefit. Technical whizzes often also overlook the importance of simplicity (question 2): their love of gadgets can frequently result in products that are just too contrived for normal people. Sometimes the new technology only works properly when you stay within the universe of Apple, Microsoft or Google, which often isn’t possible or desirable in practice. And then there’s the question of affordability (question 3) as consumers don’t measure costs just in terms of cash, but also in time and, increasingly, privacy. For all these reasons, psychologists and biologists are useful additions to the boards and teams of Silicon Valley startups if up and coming firms want the answer to all four questions to be ”yes”. Such professionals can help new ventures better understand the very human needs they are trying to fill and provide guidance on the chances of success. Firms that have correctly positioned themselves in the minds of consumers for relevance, ease of use and simplicity have truly changed the game. Courtesy of INSEAD Knowledge.

Biography  Annet Aris is an Adjunct Professor of Strategy at INSEAD. She is also a board member of Thomas Cook PLC in London, ASML N.V. in Veldhoven, ProSiebenSat1 AG in Munich, A.S.R. Netherlands N.V. in Utrecht and Jungheinrich AG in Hamburg.

CEO21_024-025_INSEAD A.indd 25

03/02/2016 18:43


ENTREPRENEURSHIP: KNOWLEDGE@WHARTON

Why Are There

MORE MALE

ENTREPRENEURS Than FEMALE Ones? W

hen it comes to thinking up new ideas upon which to found a business, and having the skills to turn a startup into a success, men and women begin on a level playing field. But in practice, men still heavily outnumber women in the high-risk world of entrepreneurship and venture-capital backed startups. Which leads to the obvious question: Why? The answer, says Wharton management professor Ethan Mollick, is multifaceted, but at its core can be traced to a few fairly simple points of personality and gender tendency on the one hand, and the broadly human tendency for birds of a proverbial feather to flock together on the other. In an interview on the Knowledge@Wharton show on Wharton Business Radio on SiriusXM channel 111, Mollick spoke about a recent research paper that he coauthored with Venkat Kuppuswamy from the University of North Carolina — titled, “Humility and Hubris: Gender Differences in Serial Founding Rates” — and how not just women, but many disadvantaged groups, can overcome impediments to success. An edited transcript of the conversation appears below. Knowledge@Wharton: Ethan, please explain your research to us. Ethan Mollick: If you look overall at the chance of someone starting a company, it turns out that gender is a really strong predictor of whether or not they will become an entrepreneur. Women are less likely to be entrepreneurs than men, and this has been a big puzzle, because women are as innovative [as men and] companies run by women are as successful. So why aren’t women launching companies at the same rate? 26

CEO MAGAZINE

CEO21_026-031_Wharton.indd 26

03/02/2016 18:43


ENTREPRENEURSHIP: KNOWLEDGE@WHARTON

That’s the puzzle that we were trying to solve with this research. What we did first was think about why people start companies. There’s actually a lot of research on this, and it shows that overall, entrepreneurship is kind of like buying a lottery ticket. You’ve heard the statistic that something like half of companies fail? It’s a little over that over a five-year period of time. Most people who play the entrepreneurship game lose. So in order to be an entrepreneur, you have to be overconfident. You have to believe that you’re better than everyone around you. In fact, overconfidence is the biggest psychological predictor of whether or not you’re going to become an entrepreneur. Having misplaced confidence in yourself and thinking you can win when other people always lose is a strong predictor of entrepreneurship. We call this kind of overconfidence classic, Greek-style hubris — the idea of unfounded self-confidence. We were thinking about this hubris result — this was work I was doing with Venkat Kuppuswamy at the University of North Carolina — and we realized that there is actually another set of research on gender that has found something across cultures and across ages called the “male hubris, female humility” effect. What it says is that women have lower levels of hubris than men — they’re less likely to be overconfident. They’re especially less likely to make what we call the fundamental attribution error — in this case, holding the belief that when things go right, it’s all because of your genius, and when things go wrong, it’s because of luck or outside forces. Men are much more prone to the fundamental attribution error. They’re much more likely than women to believe that their CEO MAGAZINE

CEO21_026-031_Wharton.indd 27

27

03/02/2016 18:43


ENTREPRENEURSHIP: KNOWLEDGE@WHARTON

success is because of their own doing and failure is someone else’s fault. Women actually have a more accurate judgment of risk in this particular way. On the other hand, it’s called the male hubris, female humility effect. Men have more hubris. Women, in addition to having a lower hubris, also have higher levels of humility. Humility means that in the face of actual success, you’re less likely to attribute it to yourself and you’re less likely to take advantage of it. K@W: Right. Mollick: So we thought: If entrepreneurship is based in part on hubris, maybe this male hubris, female humility effect actually shows us something about why women are less likely to do start-ups. And there are a lot of reasons. There’s the fact that women tend to have a lower preference for start-ups. There are issues that we can discuss later of ongoing misogyny and social barriers to female entrepreneurship. But even given all of that, women still seem less likely [to launch statups], so we thought maybe this was the reason. Then, we also looked at crowdfunding, which is interesting because we can watch a lot of people fail, succeed and try at things in this very transparent way. In this case, what we did was looked at people who had succeeded or failed the first time they tried to raise money on Kickstarter. The people who succeeded in raising money were those who had a goal and raised more than that goal. If they were trying to raise $10,000 to produce a new kind of coffee cup, they raised $10,000 or $11,000 or $15,000. We also looked at people who failed — who tried to raise $10,000 to make a new coffee cup, but they raised zero dollars or $5,000. What we figured was that everybody is justified in trying entrepreneurship the first time, because you don’t know how good you are. But whether you fail or succeed the first time, you’ve now learned something about your own ability to become an entrepreneur. The people who failed now have new information that they may not be so great at this, and the more they fail, the more it’s an indicator they didn’t do a great job. People who failed, but raised $9,000 out of the $10,000 — great. People who raised zero dollars out of $10,000 should be learning the lesson that they’re doing something wrong. K@W: When you think about crowdfunding and the ideas on crowdfunding sites, people are investing in the idea. They’re not really investing in the person, at least at the outset. 28

CEO MAGAZINE

CEO21_026-031_Wharton.indd 28

03/02/2016 18:43


ENTREPRENEURSHIP: KNOWLEDGE@WHARTON

People who failed, but raised $9,000 out of the $10,000 — great. People who raised zero dollars out of $10,000 should be learning the lesson that they’re doing something wrong.

If we take a step back and think about why women don’t raise as much money as often as men, there are a bunch of reasons. We talked briefly about misogyny, and that’s been in the press recently. [Also,] women in general tend to start companies that are different than the kind of companies that men start. They are more

Mollick: Exactly. So what’s nice is gender

if I remember correctly, to several thousand

likely to start a company out of the home;

shouldn’t have a role in this...

attempts. So it was a pretty good set of numbers.

they are more likely to be in area like retail, where venture capital and bank loans are

What we defined as hubris is trying to start a company, trying a second attempt at

K@W: We were talking before we went on the

crowdfunding, when you failed by a lot the first

air about research conducted by [Wharton’s]

time around. We defined humility as not trying

Laura Huang that looked at VC start-up

reason seems to be — and this is a problem

again when you’ve had a big success. So, say

funding rounds, which found that an attractive

that we see in discrimination everywhere

I’ve raised $15,000 with a goal of $10,000: I

man would be able to get more money than

— something we call “homophily.” It’s the

should be more likely to try again; that tells me

a woman, but a woman would be able to get

principle that “birds of a feather flock

I’m very good at this. If I raised zero dollars out

more money than an ugly man. It’s interesting

together.” People like people like themselves.

of $10,000, it tells me I’m bad at this.

how the personal dynamics play a huge role in

VCs tend to be mostly male; they have friend

terms of the actual funding, and the potential

networks that are mostly male. As a result,

successes of these different ideas.

you have a very strong network of men who

K@W: Time to try something else. Mollick: Exactly. And we found evidence of

not as common. There are a bunch of reasons, but one key

talk to each other, and it’s very hard for a

this effect. As people failed by larger and larger

Mollick: Yes... We’re still trying to work

amounts, disproportionately, women more than

through these things, but it’s complicated.

woman to get access to these people. K@W: Especially if it’s a network that’s

men were discouraged from trying again. Now

If you look at the number of companies

that’s a very rational outcome, right? Because

started by women in the United States, about

been in place for 10 or 20 years.

you’ve learned something.

38% to 40% of all companies have female

Mollick: Exactly. It doesn’t matter how

cofounders. Now, I’m going to ask you to play a

proactive and feminist you are as a guy. If the

K@W: Right.

guessing game. Overall, 40% of companies are

network you are part of is mostly men, you’re

Mollick: Men were much more likely to try — but

VC funded, but of those, what percentage do

just not going to see as many women’s projects,

also, on the other end, they succeeded by larger

you think have female cofounders?

you’re not going to hear in your network about as many successful women. You’re not going to

and larger amounts. Women — again, increasingly disproportionately — were less likely to try

K@W: I’m going to say it’s probably quite

be able to do due diligence as easily. This has

again than men. They were less encouraged by

a bit lower, correct?

been a problem in a lot of fields.

success and more discouraged by failure. Being

Mollick: Yes — somewhere between 2% and

discouraged by failure is completely rational.

4%. Terrifyingly lower, right?

One of the things that you hear about as a solution to this is: What if we try to increase the number of women who are venture capitalists?

It benefits women individually, because they’re not engaging in doomed ventures. But it hurts

K@W: Yes.

Can we solve this problem, because then we

them as a group because it means that you don’t

Mollick: I also have a set of research trying

are reversing that trend?

have enough women buying entrepreneurial

to understand what’s happening there and

“lottery tickets.” So fewer “lottery winners” are

how to improve it — and I’m also looking at

We took a Kickstarter project that was very

women, and you don’t have as many successful

crowdfunding for that. One of the things to note

successful, and we created two exact versions

entrepreneurs who are women.

is that women in general are less likely to raise

of that project.

You also have fewer role models and less

money than men in almost every circumstance.

[To look into this] we did several experiments.

The only difference between the two was

of a good basis to start things with. We found

We talked about some of professor Huang’s

the creator — in one case, it was created by

that — in our sample, at least — if women

research; there is also other research looking

Jessica Smith, in the other case, it was created

were as immodest and as unhumble as men,

at bank loans and several other categories.

by Michael Smith. Everything else stayed

and as overconfident, there would have been

[However,] what we found that was interesting

the same. Jessica and Michael are the most common

30%, roughly — about 28% — more female

is, with crowdfunding as opposed to any other

founding attempts in our sample. That was a

form of fundraising, with the exact same project

names for millennials, and Smith is the most

huge number of people being discouraged by

— controlling for all of the factors — women are

common last name. We also used some data

this psychological characteristic. It explained

13% more likely to succeed than men.

from Princeton to pick two equally attractive individuals, so they were controlled for

a lot of the gap in the founding rates between K@W: On Kickstarter?

attractiveness. Then, in a lab setting we

Mollick: On Kickstarter. Jason Greenberg of

showed a bunch of people one of these

K@W: How many different crowdfunding concepts

NYU and I have been trying to figure this out,

two projects.

did you actually look at in the first place?

and we thought the reason might have to do

Mollick: We started with everybody who has ever

with the percentage of people who are actually

whether the project being created by a man

tried to raise money, and we narrowed it down,

funding projects.

or a woman made a difference, so we actually

women and men in our sample.

What we wanted to do was figure out

CEO MAGAZINE

CEO21_026-031_Wharton.indd 29

29

03/02/2016 18:43


ENTREPRENEURSHIP: KNOWLEDGE@WHARTON

gave [our subjects] money that they could

K@W: You mentioned that in a lot of cases,

K@W: The aspect of overconfidence, though,

choose to donate to the project, and we asked

[success] is a matter of other women supporting

is an interesting one because a lot of people

them where the project quality was better.

female entrepreneurs. Are you seeing increasing

assume that being overconfident is a negative,

numbers of those cases of women supporting

yet in some of these cases, overconfidence was

project was created by a man or a woman. There

other female entrepreneurs?

actually a positive.

was no significant impact. At least in this case,

Mollick: One of the nice changes that we’re

Mollick: Well, overconfidence is usually a

it didn’t seem to move the needle. With women,

seeing is that there are more and more female

negative individually. The way you calculate

it turned out to be really interesting. Two-thirds

VCs, there are more and more efforts to try

returns is, you look at the chance of you winning

of women actually thought the project created

and help women succeed, and there are even

something, and you multiply it by how much

by the man was better than the project created

crowdfunding networks built for women,

you win. That’s why a lottery ticket is never a

by the woman.

like Plum Alley.

good deal: You have a one in 100 million chance

We found out that men didn’t care whether a

[However], we took a bunch of measures,

I think the situation is changing, but I

know it’s costing you money to play the lottery.

think we have to be aware of what’s causing it.

in the sample were what we called “activists.”

The solution seems to be in supporting fellow

These were women who knew that women

members of your group — and that’s not just

K@W: Especially if you are playing it

were underrepresented in technology. They

for women; it’s any underrepresented group.

week after week after week after week. Mollick: Exactly. In the same way, with

felt that women suffered from discrimination in this field, and they thought it was important

K@W: I wanted to go back to something you

entrepreneurship, on average, you’re buying

to try and fix that. They thought either the

were talking about earlier — about the level of

a lottery ticket. Now, if you have an advanced

government should help or they should help or

success that either men or women were having

degree from a top school, the odds are

it was important to try and change this. Those

with these projects: the amount of success,

much better. I’ve got research on Wharton

women were much more likely to [fund] a

whether they were able to meet their goal,

entrepreneurs that shows they do quite well.

project created by a woman.

or they came close to that mark, or if they got

But, the expected return from

very little. How did that all factor in?

entrepreneurship for most people is negative

the reasons why women were doing better

Mollick: Overall, women did better than men.

because most businesses close, and even for

than men [on Kickstarter] — came from a small

[The question became:] Are they doing better

the businesses that succeed, only a small

group of women who were helping to support

than men because it’s rough out there for a

portion of those founders end up becoming

other women in areas where there was the most

woman, so only the most persistent women are

super rich.

disadvantage for them.

succeeding? If so, maybe the pool of women is

So all of the success that we found —

Thus, the solution to the problem of “how

better than the pool of men.

Less than 2% of companies in the United States receive venture capital and go

do you increase the representation of women”

So we surveyed a lot of people in the

on to do an IPO and all these other things. So

turned out not to be from having more women

crowdfunding world, and we were able to

overconfidence individually means that you’re

participate, but from [involving] these activists

measure all those human capital factors. Did you

not assessing the risks properly, because you

who are actually out to help.

go to college? Do you have kids? How long have

think you’re better than everyone else based on

you worked in the industry? Even taking all that

no evidence. As a group, though, overconfidence

K@W: Given the fact that not as many women

into account, we still saw the same effect. So

gets people to try things, and it advances the

go back a second time to do a different project,

crowdfunding seems unique in providing more

state of technology, the state of society.

in some respects, the success that a lot of

opportunity. One of the reasons I’m interested in it

So the collective failure of entrepreneurs

women have in major corporations or in other

is its ability to help democratize access to capital.

is bad for those entrepreneurs who are failing,

Because [the problem is] not just gender. The

but good for us as people who want to benefit

companies — that falls in line with the idea that

from innovation and creativity.

they are more often looking for a traditional,

mean distance between a venture capitalist and

stable company, compared to going out on their

a company to invest in is only 80 miles. So if you

own and really taking the gamble.

don’t live by a VC, if you haven’t graduated from

K@W: You’re talking about hubris and

Mollick: Yes. We are seeing successful female

a good school, if you don’t know the right set of

overconfidence. These human traits aren’t the

entrepreneurship, and all the evidence and

people, it’s hard — not impossible, but it’s much

sorts of things that are easy to alter. It’s not like

research seems to show that having a woman

harder — to get access to venture capital.

making an adjustment to a business plan. Is

on the board of your start-up or as a co-founder

That’s why crowdfunding is interesting —

there a thought process that the numbers might

increases your chance of success, so it’s not an

because it spreads the net much wider and lets

change over time, and that the research you did

ability problem.

anyone raise money. It’s not just women. It’s

could lead to changes, or is this a pattern that

also people who live outside of major cities;

probably will be maintained a long time to come?

it’s people who are amateur inventors.

Mollick: First, I should mention, just so people

Similarly, when I look at outcomes in crowdfunding, gender doesn’t matter in

don’t think this is too trait-based: For a long

terms of whether or not you’re successful in ultimately producing your product, [launching]

K@W: In other words, not people who are already

time in entrepreneurship, we’ve been studying

a company, or any other factor.

involved in that realm, which is obviously where a

every aspect of personality to try and figure out

large percentage of the cash is coming from.

whether you can give someone a test to find out

entrepreneurship, then there aren’t enough

Mollick: Exactly. Otherwise, the money keeps

why they’ll be successful as an entrepreneur.

women as funders, there aren’t enough women

coming from the same people and going to the

as examples, and that ends up discouraging

same people, and it doesn’t ever break out of

You can’t. We have no way of predicting

women and doesn’t solve the problem.

that world.

entrepreneurial success. We can predict the

[But] if there are not enough women doing

30

of winning a million dollars. Based on that, you

and we realized about one-third of the women

For me, at least, the good answer is:

CEO MAGAZINE

CEO21_026-031_Wharton.indd 30

03/02/2016 18:43


ENTREPRENEURSHIP: KNOWLEDGE@WHARTON

chance of you going into entrepreneurship, which is what overconfidence helps predict. Those traits seem pretty fixed, but the good news for anyone out there who’s thinking about being an entrepreneur is, I can’t tell you in advance whether you’re going to succeed or fail based on your personality. There is a sense that maybe entrepreneurs are more likely to want to have control. That might be an issue. There are some other findings that entrepreneurs who are willing to share the wealth do better, but there’s not really a clear personality characteristic that applies. So I agree, the trait stuff is somewhat locked in place. But I think you can change your own sense of confidence by looking around and taking a realistic view of your own chance of success. K@W: Sure. Mollick: Also, go about staging your start-up in a way that you learn information as you go, so you don’t, for example, commit all of your money to launching a restaurant without having tested your ideas first. There’s a method out there called Lean Start-Up that gets around some of these issues. But the best advice I have for entrepreneurs is: Realize you’re probably overconfident. That’s OK, but do what you can to learn about your own chances of success or failure before you commit all your money and time, and quit your job to do this. K@W: Obviously, if the idea is a sound, fundamental one, in the right industry, it really wouldn’t matter whether you’re a man or a woman. Mollick: Yes. A good idea and a good team tend to win. The lesson, though, tends to be that women still have it tougher than men in getting access to resources. So the issue is not in launching a start-up, not in being able to run something successfully, but that they have trouble getting access to resources in most areas of funding. And that’s something we have to still work on. These are marginal impacts, but they discourage women from trying. I think it would benefit everybody, given all of our research, to have more people be successful entrepreneurs — both for the people who are making the money doing it, and for the society that benefits from the results.

Republished with permission from Knowledge@Wharton (knowledge.wharton. upenn.edu), the online research and business analysis journal of the Wharton School of the University of Pennsylvania. CEO MAGAZINE

CEO21_026-031_Wharton.indd 31

31

03/02/2016 18:43


TUM SCHOOL OF MANAGEMENT

Business Education to

INNOVATE AND LEAD Alexandra Skinner talks to TUM School of Management.

You offer three Executive MBA programmes which, loosely speaking, are geared to engineers, entrepreneurs and I.T. professionals. Would this be a fair assessment, or do you see a wider fit and appeal?

Generally, throughout the programme,

and IT (EMBA BIT) are indeed mainly geared

Whilst high quality faculty are very important, potential students applying to the best EMBA programmes in the world also expect their fellow applicants to be highly accomplished. With this in mind, can you elaborate on the make-up of your EMBA cohorts, in terms of age, experience, international diversity, and career level?

towards entrepreneurs, innovation managers

As discussed, our EMBA cohorts are

companies, and European companies in the

and managers who have to deal with digital

very diverse – this is also true for the

Asian environment.

transformation in their organisations, the

abovementioned criteria. Although 37 is

Executive MBA (EMBA) is designed for

the average, ages range from around 30 to 50,

managers and leaders of all backgrounds.

work experience from four to more than 20

Roughly one third of participants have

years (the average is 11), and international

While the Executive MBAs in Innovation and Business Creation (EMBA IBC) and Business

an academic background in engineering

students account for 35 per cent of our cohorts.

or IT, followed by more than 20 per cent in

Career levels range from project leaders to

economics and 17 per cent in social science,

managing directors.

but other fields are also prevalent, such as communications, medicine, law etc. Numerous discussions in this cohort arise from the group’s diversity and varying backgrounds. Our participants benefit from different

Large parts of the content for each module are

case studies will be used. During the study abroad element at Tsinghua University, Beijing, international business is the central issue. In addition to lectures on “Doing business in China” (marketing, the legal environment, communication and media, finance etc.), our participants visit Chinese

You offer two concentrations at the EMBA level: one in innovation and business creation and the other in business I.T. Can you expand upon the thinking behind the aforementioned specialisations, the target audience they are geared towards, and the feedback you’ve received from students on these programmes? EMBA BIT: Digitalisation is one of the main challenges for companies worldwide.

cultural perspectives, not only with regard to

looked at from an international perspective, e.g.

nationalities, but also academic backgrounds,

international accounting standards, leadership

from our international business partners

industries and corporate cultures.

of international and virtual teams etc.

in cooperation with the largest European

32

To what extent are students exposed to international business throughout your programmes?

a significant number of international

The initiative for the programme arose

As a state-owned University we are independent, so providing high quality teaching and research, as well as developing responsible leaders, is our main priority.

CEO MAGAZINE

CEO21_032-034_TUM.indd 32

04/02/2016 16:47


TUM SCHOOL OF MANAGEMENT

Participants receive the perfect start up environment – one of largest entrepreneurship centres within Germany, including UnternehmerTUM – and acquire the necessary skills to build their own company. In addition to this, participants receive guidance and support on every step of their journey. Several successful startups proves the success of this programme.

✓ ✓

Evidence-based Management: Our programmes are based on the best available empirical evidence:

Facts instead of opinions!

Technology Orientation: TUM is one of the best

IT association (EuroCIO) who are facing the challenge of digitalisation within their organisations. A lack of professionals with adequate

The quality of a business school’s faculty, both academically, and in terms of business experience, is an important consideration for students. With this in mind, please can you tell CEO Magazine readers more about TUM’s EMBA faculty?

technical universities

worldwide. We are part of a technological think-tank, which gives us the opportunity to use the latest knowledge of our natural science, engineering and life science departments. We are able to develop

knowledge in areas such as IT security,

The Times Higher Education Ranking

programmes based on technologies

digital transformation, business processes,

(TUM – best German Technical University)

for the future.

and privacy management was determined

and the German Handelsblatt Ranking

and therefore a suitable programme had

(TUM School of Management – strongest

to be developed.

research business faculty) show that TUM’s

As a technical University, TUM combines

professors provide excellent research with a

research and teaching expertise in IT as well as

strong practical focus. This is also proven by

offering outstanding management knowledge.

TUM receiving the highest third-party funds

Feedback from our students shows that the

within Germany. Additionally, 50 per cent of

content taught in this programme reflects the

our lecturers are experienced practitioners

exact challenges and problems students face

from diverse organisations.

in their working environment. EMBA IBC: The lack of entrepreneurs within the German economy led to the development of a programme specialising in innovation and business creation.

The European MBA market continues to be competitive, both in terms of the number and range of MBA programmes on offer. What distinguishes TUM from the competition?

✓ ✓

The German Economy: The strength of the German economy, largely

based on engineering and science as well as its worldwide reputation for high quality, attracts executives.

Location – Munich: Munich is one of Europe’s business centres boasting the headquarters of numerous

world-leading organisations. TUM is part of this world-class network. CEO MAGAZINE

CEO21_032-034_TUM.indd 33

33

04/02/2016 16:47


TUM SCHOOL OF MANAGEMENT

TUM and the Business Market

can change at any time – show critical and

To what extent do you liaise with local and national businesses to understand the ROI expectations of employers, and how much influence do these businesses have on the structure of your EMBA?

entrepreneurial thinking

As a state-owned University we are independent,

 Have a clear vision of the future  Develop employee loyalty by seeing staff

There is an expectation from the market that business schools should be creating responsible leaders. How much emphasis do you place upon this in your EMBA programme, and on dynamics such as CSR and sustainable development?

and team members as individuals  Understand that the commercial landscape

 Manage uncertainty in today’s fast-moving world. These skills are included at numerous points

programmes are evaluated and enhanced by

development of senior managers so that they

within the modules as they are meta goals

our Executive Education Board, a group of

may become highly effective, responsible

rather than specific learning goals. A major

approximately 35 high-level executives from the

leaders. This is why CSR and ethical and

aspect in this context is the individual leadership

business world who meet regularly to ensure

sustainable behavior is integrated into all

profile offered exclusively in our Executive

that the programmes are up-to-date and in

modules, likewise these topics are included

MBA. By building a personal leadership profile,

accordance with needs of industry.

in our evening sessions where participants

participants become better acquainted with

have the chance to discuss such issues with

themselves, their strengths, and development

experienced practitioners from the industry.

potential. As part of the process, a team from

In your opinion, what are the three most important skills the market requires from business leaders and how are you equipping your EMBA students to meet these demands?

assessment which is compared to his or her own

In your opinion, what can students expect from the TUM EMBA, post-graduation, both in terms of professional and personal ROI?

self-assessment. Similarities and differences are

A wide network of contacts ranging from

listed as individual feedback in a detailed report.

classmates and alumni (through membership in

This allows each participant to perform an

the Alumni Association) through to professors

immediate assessment of their unique personal

and practitioners. Our focus on leadership

Based on our current research, leaders need to

strengths and leadership styles, and what can be

development is also noteworthy in terms of

be able to do the following:

done to drive continuous improvement.

the benefits it offers far beyond graduation.

the participant’s workplace provides an external

STUDENT FEEDBACK A number of reasons led me to choose TUM’s EMBA: The University is very well regarded in Germany, the programme length was relatively short for an Executive MBA (two years), the average age of the students indicated it was targeted to professionals with experience, and I was very impressed by the Open Day, where I had the opportunity to attend a lecture and talk to students. All of these factors gave me the confidence that I would be making a good decision by enrolling in the TUM EMBA, and this impression has been further supported during the programme. I’ve found the programme in general to be very well organised. The level of the lectures is very high, and in my view there is a very good balance between strong academic basis and practical relevance. Although attendance happens in blocks of several consecutive days, which might seem a bit tough at the beginning (which it was), it allows you to detach from work and be really immersed in the programme during this period, which makes it feels like you are really doing a graduate study programme in a university. This is, in my view, one of the strongest advantages of this programme. Having the opportunity to do a regular deep-dive into a number of different topics ranging from change management to strategy, covering finance, ethics, intercultural communication, leadership etc., gives me a unique opportunity to refresh my views and gain the new perspectives I was looking for when I decided to do an EMBA. Andre Dutra is part of TUM’s EMBA Class of 2017. Andre is currently Principal Consultant at Ericsson. 34

as well as developing responsible leaders, is our main priority. However, our executive education

In our EMBA programmes our aim is to advance the knowledge, skills, and personal

so providing high quality teaching and research,

In addition to becoming more effective leaders, our students can also expect the following:  A sound knowledge of the most important areas of business  Be problem solvers in business practice  Become responsible decision makers  Become competent leaders in international and intercultural business contexts  Develop innovative and strategic thinking, as well as time management skills and more.

The Future What’s next for TUM Executive MBAs over the short to mid-term? Further internationalisation, new teaching formats (such as flipped classrooms and MOOCs) and further individualisation of programmes (electives, mentoring programmes, leadership development etc.).

School Profile  TUM School of Management at Technical University of Munich (TUM) carries out world-class research and teaching at the interface between management and technology. Established in 2002, TUM consistently top the rankings of business schools in Germany.

CEO MAGAZINE

CEO21_032-034_TUM.indd 34

04/02/2016 16:47


CEO21_035_Ad - AMBA.indd 35

03/02/2016 18:44


LEADERSHIP SUCCESS

What CEOs Need to Lead in an Uncertain and Hyper-Connected World Oxford-Heidrick Research identifies six critical capabilities.

C

hief executives today navigate a world unprecedented in complexity and unpredictability. Their success hinges on adaptability, authenticity, and continual growth in the role, even more than on preparation beforehand, according to The CEO Report, the product of a year-long global research partnership between Saïd Business School at the University of Oxford and Heidrick & Struggles (Nasdaq: HSII).

36

The role of CEO is structurally unique and preparation therefore always incomplete, the report notes. Embracing a mindset of continual learning and curiosity is necessary for CEOs to cope with the uncertainty around them. Based on in-depth interviews with more than 150 CEOs from around the world and across business sectors, The CEO Report is one of the most comprehensive in-depth studies of CEO leadership capabilities. It identifies a suite of integrated skill sets that today’s senior-most leaders leverage to help them grow and thrive in a business environment marked by constant change and dissonance of competing stakeholder interests. “Senior business leaders must operate in a new normal of unpredictable change in a hyper-connected world,” said Tracy

Wolstencroft, Heidrick & Struggles CEO and President. “Volatile business climates can provide a competitive advantage for those who are able to manage uncertainty and understand that the past alone is not an accurate predictor of the future.” “This research captures what it is to be a CEO today and the significant leadership challenges CEOs face. A picture emerges of leaders who are changing and developing as quickly as the environment in which they operate,” said Professor Peter Tufano, Dean of Saïd Business School. “This rich and detailed study gives us a deeper understanding of the needs of executives at the top of organizations and suggests ways in which we can support them in their personal development.”

CEO MAGAZINE

CEO21_036-037_Oxford.indd 36

03/02/2016 18:44


LEADERSHIP SUCCESS

Ripple Intelligence Contextual intelligence is not enough today. CEOs need to continuously adapt to changing dynamics impacting every aspect of their business. “Ripple intelligence” – a critical finding in the research – is the ability to see the interactions of business contexts like ripples moving across a pond. It enables CEOs to envision how trends and contexts may intersect and change direction, so they can anticipate disruptions, make time to plan, and protect against being blindsided by unexpected events. Ripple intelligence also makes CEOs aware of their own impact and how it may influence contexts that might otherwise seem remote and unconnected. “Ripple intelligence is a significant early warning system that CEOs are using to navigate the uncertainty and unpredictability of today’s world,” said lead researcher Dr. Michael Smets, Associate Professor in Management and Organisation Studies at Saïd Business School. “The report will help CEOs understand the dimensions of how to amass information and perspective so they can better navigate the ripples they can see, and anticipate those they can’t.” The other critical capabilities identified in The CEO Report are:  The S3 of Change – The ability to determine not just the speed of change, but also the real and perceived scope and significance to the organization and its stakeholders.  The Power of Doubt – The transformation of doubt into a powerful decision making tool is a critical skill amongst CEOs today. They leverage doubt similar to elite athletes’ utilization of nerves: as a source of focus and insight when harnessed constructively.

 Adapting authentically – Facing relentless pressure for change, CEOs consider adaptability a requirement for the role. Yet ‘authentic leadership’ is also a demand and thus the need to balance between being ever adaptable while remaining true to their personal sense of purpose, and thus their authenticity, is critical.  Finding balance – Faced with competing, yet equally valid, stakeholder demands, CEOs increasingly must navigate through paradoxical choices, including between “right... and right,” both for themselves and their organizations. Balancing these paradoxes gives CEOs the foundation to turn organizational trade-offs into win–win situations.  Continual growth and renewal – CEOs feel that their success today hinges on continual growth in the role. They recognize that the role is structurally unique and preparation therefore always incomplete. Embracing a mindset of continual learning and curiosity is necessary for CEOs to always “be ready” for the uncertainty around them. “The research has given us a deep understanding of how CEOs are navigating these markets,” said Valerie Germain, Managing Partner, Heidrick & Struggles. “It is clear that they strive to find opportunity among the challenges, for both business and personal growth.” “In our continued conversations with CEOs they highlight the challenges of bridging the gap between the expectation and the reality of the role,” said Dr Smets. “This enables both Oxford Saïd and Heidrick & Struggles to advance our thinking and design programmes that help develop the next generation of business leaders. ”

About the Research  The research was conducted by a research team from Saïd Business School, University of Oxford and Heidrick & Struggles, under the research and ethics guidelines set by the university. Combining the complementary strengths of these two institutions produced a distinctive blend of academic rigor and practical business impact. Jointly, they conducted in-depth interviews with 152 CEOs from across the world and from a wide range of sectors, making this one of the most comprehensive studies of CEOs globally. Collectively, these leaders have over 880 years of CEO experience and are responsible for a total of more than 5.8 million employees generating $1.7 trillion in revenue. All interviews were anonymized prior to analysis by the research team. The full report is available here: www.heidrick.com/theceoreport www.sbs.ox.ac.uk/ideas-impact/ceo-report

Heidrick & Struggles  Heidrick & Struggles (Nasdaq: HSII) serves the executive talent and leadership needs of the world’s top organizations as the premier provider of leadership consulting, culture shaping and seniorlevel executive search services. Heidrick & Struggles pioneered the profession of executive search more than 60 years ago. Today, the firm serves as a trusted advisor, providing integrated leadership solutions and helping its clients change the world, one leadership team at a time.

Saïd Business School, University of Oxford  Saïd Business School at the University of Oxford blends the best of new and old. We are a vibrant and innovative business school, but yet deeply embedded in an 800 year old world-class university. We create programmes and ideas that have global impact. We educate people for successful business careers, and as a community seek to tackle world-scale problems. We deliver cutting-edge programmes and ground-breaking research that transform individuals, organisations, business practice, and society. We seek to be a world-class business school community, embedded in a world-class University, tackling world-scale problems.

CEO MAGAZINE

CEO21_036-037_Oxford.indd 37

37

03/02/2016 18:44


AUSTRALIAN INSTITUTE OF BUSINESS

Why is the 12 Month MBA the most popular in Australia? Recently confirmed as the most popular MBA model in Australia (AFR September 2015), the Australian Institute of Business’s 12 Month MBA has long been chosen by students around the world for its practical application and accelerated format. Asked why they selected AIB’s 12 Month MBA, students and alumni have listed the following ten reasons.

1. It’s globally accessible There’s a reason why most of AIB’s MBA students choose to study by distance learning: flexibility. Students using this method can study while working full-time, from anywhere around the world, at times that suit them. This means the degree can be fit around a hectic work schedule, extensive travel, or family and social commitments. Completing the 12 Month MBA by distance learning also provides the same qualification as that learnt from on-campus study, but without the cost of attending classes.

“Studying by distance was the only way I could conceivably do my MBA, but fitting the degree in around my roster is never too difficult, since I can take my programme notes and journal readings with me wherever I go and work from my iPad between work days.” Stuart Dunn, First Officer at Qantas

2. It’s accredited in Australia and recognised internationally AIB’s qualifications are accredited within the national Australian Qualifications Framework (AQF), which is regulated by the Tertiary Education Quality and Standards Agency (TEQSA), an independent statutory authority as established by the Australian federal government. This accreditation is awarded solely to those education providers that have met strict criteria, aligning them with other Australian universities and colleges. It also ensures that AIB’s courses are delivered with quality and integrity. AQF is an internationally recognised qualifications framework, meaning that the qualifications accredited within it are recognised within selected countries internationally (for further details, please see the TEQSA website).

38

“I’ve studied in countries all around the world and have been an international student all my life, so it made sense for me to complete my MBA with AIB, where my qualification will travel with me.” Sachinta Vishwanatha, Senior Manager – Procurement at Etisalat Lanka (Private) Limited

CEO MAGAZINE

CEO21_038-040_AIB.indd 38

03/02/2016 18:44


AUSTRALIAN INSTITUTE OF BUSINESS

3. It takes just 12 months To achieve an MBA, a total of 12 subjects must be completed. At a traditional university, this will generally take a minimum of 18 months, completing four subjects per semester. One of the greatest benefits of the month-by-month MBA is that subjects can be completed consecutively in as little as 12 months. AIB’s 12 Month MBA is also designed to be studied while working full-time, with the student focusing on only one subject at a time except for the final project. This methodology offers greater flexibility than traditional university semesters, and provides students with up to three years to complete their degree if they need it.

“We realised that in 12 months’ time, or 52 weeks, or 365 days, I could be qualified with a master’s. This was achievable in our family. Here I was, a mother of a 10-year-old and a 7-year-old, but with AIB I could study while continuing to work full-time and still being a full-time mum.” Ann-Marie Colangelo, Head of Direct Sales SA, NewsCorp Australia

4. It qualifies you after four months AIB’s stage-by-stage methodology allows you to get qualified at every stage of your MBA. This means that (subject to the appropriate approvals) students may become eligible for a Graduate Certificate in Management after just four subjects of your MBA; a Graduate Diploma in Management after eight subjects; and the full MBA after twelve. These stages also serve as ‘exit points’ of the MBA, and can help students to become eligible for pay rises and even promotions before they have completed their full MBA.

“It was definitely the affordability that initially drew me to the programme. The other reason was that AIB offered the modular method whereby after you complete four subjects, you can become eligible for the Graduate Certificate in Management and then after a further four subjects, the Graduate Diploma in Management.” Daleen Van Der Merwe, MBA Graduate

5. It’s work-applied AIB prides itself on being ‘the practical business school’, offering students a hands-on education that is relevant to their everyday work. Students are required to relate both their assignments and exams back to the workplace, meaning that in many cases they can draw on their previous experience and can use the skills they have learnt in their programme the very next day at work. Rather than learning just the theory, AIB’s MBA students graduate with a real-world business focus, and knowledge that can be applied directly to their roles.

“The best thing about working in operations is that it didn’t matter what subject you were studying that month, there was something in every single subject of the MBA that you could use. I managed 350 people during my MBA, so I would be putting real, live data in all my assignments and using them to improve the business.” Rhonda Olsson, National Manager Offshore Operations at RP Data

6. It gives you access to student and academic support AIB provides its students with a range of support throughout their studies, including access to a team of professional and experienced academics. Whether you require clarification on the marks you have received, support in understanding a topic, or simply want to discuss whether you’re on the right track, AIB’s academics are there to support you every step of the way. This is a big factor for those students who haven’t studied recently or may not have completed previous tertiary education.

“As I progressed through the MBA I was never on my own. If I encountered any problems, I could email support and get help. Throughout the programme I would email my queries and problems and the AIB Support Team would get right back to me within 24 hours with feedback from the professors.” Bianca Pedrosa, Innovations Consultant

CEO MAGAZINE

CEO21_038-040_AIB.indd 39

39

03/02/2016 18:44


AUSTRALIAN INSTITUTE OF BUSINESS

7. It has flexible entry requirements AIB’s flexible entry criteria allows for the fact that not everyone has taken the traditional route to get to where they are today. At AIB, many of our MBA students have not completed a first degree, but may have years of management or business experience. Others may have formal qualifications but not as much practical experience. The 12 Month MBA can take you where you want to go, regardless of where you have been.

“Before becoming a co-director of Rees Electrical, I had been working in the investment banking industry for 10 years. Following this, I was studying a Masters of Applied Finance, but I decided that I wanted to change my direction to focus on general management. I liked that the MBA could be applied to any job in any industry.” Jennifer Hellyar, Management Consultant & Executive Coach

8. It’s an affordable investment AIB offers one of the most affordable MBAs on the market, with a faster return on investment than expensive MBAs which may require a payback period that is decades long. The degree is designed to be completed while working fulltime, providing students with the opportunity to maintain their current income while studying. Many students look for a cost-effective way to upgrade their business skills, with a low risk of accruing debt, which is where affordable MBAs can be of great benefit.

“I did a lot of research online to see what was available and wanted to do it by distance so that was key with AIB. I have a busy work life and a busy family life so the AIB ‘Study While You Work’ approach was appealing to me as I could study in times that suited me. Also, another bonus with AIB was that it was at a price which was affordable.” Kent Peters, Bursar/Chief Financial Officer at Guildford Grammar School

9. It opens up a global network Comprising an extensive global network in over 70 countries, the AIB alumni bring together industry professionals from a wide range of backgrounds. Local alumni events allow relationshipbuilding and an opportunity for fellow graduates to connect. AIB is committed to investing in global alumni initiatives in order to bring its online global community together. Networks such as LinkedIn also allow like-minded business professionals to connect and engage in relevant conversations. All students and alumni of AIB are invited to join the AIB LinkedIn page, which allows for new learning and the opportunity to grow your list of contacts.

“Use the MBA as an opportunity to speak to people in your networks and apply a lot of those learnings. Gone are the days when it is just about academic content. You have got to take a more pragmatic view to these studies, and the great thing about the AIB MBA is it actually allows you to do just that.” Ron Malhotra, Managing Director and Wealth Planner at Maple Tree Wealth Management

10. It’s achievable The AIB MBA is a flexible MBA programme that allows students to stop and start their degree as they wish, subject to enrolment rules. Because the degree is completed one subject each month except for the final project, students can stop and start their degree to fit around family holidays or busy periods at work, as they require. As a distance-learning MBA, the programme can be structured around your commitments, and can be studied anywhere and anytime, making it achievable for those who have odd working hours, family commitments, or are studying under extensive travel.

“When you have a lot of responsibility in your job, you can’t always be committed to going to class at a certain time, so being able to work at my own pace and allocate my own study times worked for me and my schedule. I prioritised my work, then allocated time to spend doing assignments, and worked my social life around my study.” Andrea Davey, Regional General Manager, Small Business Banking QLD at Westpac

 Australian Institute of Business is a 25 year old business school based in Australia, offering degrees, undertaking research, and providing consultancy services globally. AIB was the first, and remains the only, private institution in Australia to be government approved to confer the full suite of business degrees, including the prestigious PhD. 40

CEO MAGAZINE

CEO21_038-040_AIB.indd 40

03/02/2016 18:44


CEO21_041_Ad - Fordham.indd 41

03/02/2016 18:57


MBA PROGRAMME SELECTION

BOOST YOUR CAREER! How to choose the MBA that suits you best Business School Netherlands

N

othing changes as rapidly as the world we live in. You might think your education was top notch – and at the time it probably was – but the vertiginous pace of change means that your hard-earned knowledge needs upgrading... constantly! We aren’t implying that you are resting on your laurels, but rather presenting you with the best way to perform this upgrade; to update your knowledge, and add to it considerably while constantly honing your managerial skills. Through doing an MBA! Recent studies show that people are increasingly judged on their ability to adapt to today’s world and its dynamic developments, irrespective of their education and qualifications. The battle is now increasingly between those who can adapt and those who can’t.

On which side of the line do you fall?  Do you rely on books and models that contain tried and tested but outdated knowledge?  Do you come to grips with your environment and anticipate what will happen in it?  Can you let go of yesterday’s knowledge and look for new innovative ways and means to be equally successful tomorrow?  Certain skills and capabilities will determine which side of the line you belong to. Flexibility, creativity and empathy are just some of these capabilities.  Are you a manager who can say yes to all three? If you are, you might have what it takes to complete an MBA programme. 42

Which side do you aspire to be on?

How can you get to the other side?

To be a successful manager in today’s digital age, it is key to have the skills to adjust and develop accordingly. These are precisely the skills a good MBA can offer you. Age and years of experience are less important than what really motivates you. So now ask yourself: “Why do I want to do an MBA?” Will doing an MBA be the key to careerbuilding and a promotion? Are other people’s expectations reason enough for you to do an MBA? If these are your primary reasons, we suggest you read no further. You should know that undertaking an MBA is an intense journey. Time and money are major factors, both for you and your family. You may think your job takes up most of your time. Well, add another 12-20 hours per week of study and assignments and that is what the world is like for people who combine their job with an MBA programme.

If you are still reading, the following qualities must be added to the capabilities of flexibility, empathy and creativity: energy, determination and perseverance. If you are willing to make sacrifices, put in the effort and set out on a journey of enrichment, now is the time to start looking for the MBA that suits you best. DO NOT consider doing an MBA if:  You aren’t highly motivated;  You aren’t doing it because YOU want to;  You are only doing it because you want a promotion;  You are only doing it because your colleagues are studying as well. DO consider doing an MBA if:  You constantly want to develop and improve yourself;  You are an expert in your field, but understand the importance of discussing relevant topics with other managers and relish this competitive environment;  You have a good job, but find that colleagues and peers out-smart you, because your knowledge often seems to be irrelevant.

CEO MAGAZINE

CEO21_042-046_BSN.indd 42

03/02/2016 18:45


MBA PROGRAMME SELECTION

What works for one person might not work for another. Finding the MBA that works best for you is crucial.

Which MBA is best for me? So, you’ve decided to take the plunge. That’s great! However, this decision is only the first step of the challenging journey ahead. Which type of MBA suits you, your personality, expectations and circumstances? Which business school, methodology, and teachers are best for your learning style? Obviously not all MBA courses meet everyone’s needs. Deciding which one is for you is something you must look at very carefully prior to registering. Step 1: Answer the questions below and compare your answers with what the different MBA providers offer. It's the surest way to find the best programme for you. 1. Are you a born theoretician, or do you prefer to focus on real-life situations? Would you rather ‘learn by doing’, learn by reflecting on what you are doing right now, or read books of case studies? 2. Do you see an MBA as a separate learning process to be done outside office hours, or would you prefer to carry out assignments and projects within your own organisation? 3. How important is the level of flexibility of an MBA programme for you? 4. Are you looking for a specialised or a generic MBA programme? 5. How do you like the idea of being part of an international group of like-minded professionals discussing dilemmas and solutions, and at the same time, learning from their experiences?

Which methodology works best for me? When you have a good idea of what you can expect from an MBA, you can start exploring the options offered by the different providers. You will soon find out there are many to choose from. You can choose between a large number of established institutions, full-time or part-time programmes, online courses, certificates, specialised programmes as well as more generic curricula. Then there are universities with highly esteemed professors, and on the other side, business schools that focus more on daily practical business dilemmas. How do you decide when faced with so many options? We’ve made it easier by providing information on three popular MBA sub-categories:

1. The Scientific approach Providing a very solid and scientific, albeit mainly theoretical basis, through analysis, theories, models, focus on economics and yet more theories – this is the foundation of the traditional Masters in Business Administration, Students are presented with a great variety of theories and models that have stood the test of time and are expected to be able to learn, reproduce and apply them. The scientific approach has one clear cut advantage: students

end up being equipped with an enormous amount of theoretical knowledge. This is also the main disadvantage of the approach: the extent to which a student is theoretically equipped says very little about the way he or she is able to deal with the practical side of things.

2. The Professional approach The Case Study Method equates to Harvard Business School. This particular MBA is very focused on scientific analysis, yet takes practical situations as its point of focus. Students are presented with real life situations and challenged to use their knowledge and skills to solve complex problems. During the process their leadership skills are put to the test. There is no such thing as the ‘right answer’. The dynamics of different points of view, discussions resulting from these views, defending and adjusting these points of view are what count. Students discuss and debate until a result, that satisfactory for everyone involved, is reached. One of the biggest advantages of the professional approach MBA is that it is a well-known approach for prestigious and established institutions such as Harvard. This approach, providing a balanced mix of theory and practice is also offered by many other business schools. CEO MAGAZINE

CEO21_042-046_BSN.indd 43

43

03/02/2016 18:45


MBA PROGRAMME SELECTION

3. The Action Learning approach The Action Learning concept takes practical orientation one step further than the Case Study Method. Students undertaking an Action Learning MBA are not taught what works, or doesn’t, through studying situations in other organisations. They concentrate exclusively on situations within their own organisations and the challenges presented. Dealing with their own, current, real-time issues is the starting point and the core focus of this programme. All students look for information relevant to their particular situations. The students dig deeper into theories and interesting models, leading them to make informed decisions and implementing these decisions in their organisations. This enables students to acquire knowledge within their own work environment, to increase operational forces and find solutions that are supported throughout their organisations. Fellow-students and faculty help students gain new insights and learn from the rich experiences of others – all working in different industries and different countries.

44

One of the great advantages of the Action Learning method is that the students’ organisations benefit directly from the programme, since the situations that students focus on are drawn directly from their own work environment. The advantage of this is that, on average, a student can combine 20-40 per cent of their study time with work. The method has grown in popularity in many business schools, and corporate companies like Samsung and Boeing are energetic supporters of this approach. This is not surprising, as it not only increases the learning and problem-solving capacity of their managers, but also that of their organisations as a whole. So...

The time has come to choose the MBA for you What works for one person might not work for another. Finding the MBA that works best for you is crucial.

The right MBA has a lot to offer for today’s manager.

The right MBA has a lot to offer for today’s manager who realises how quickly knowledge becomes outdated. It can’t be emphasised enough that our rapidly changing world demands that managers be flexible, curious and creative. Studying towards an MBA requires a lot from you too: effort, energy, time and money. Not only yours, but also that of people around you; both at work and at home. Take a close look at the MBA providers and carefully decide which approach suits your lifestyle and personality. Making the right choice is of the utmost importance. It ensures you will be – and continue to be – a manager capable of adjusting to any challenges and developments the world throws your way.

Biography  Business School Netherlands has been active as a Dutch business school with international activities since 1993 and continues to expand its provision of Action Learning programmes beyond the boundaries of the Netherlands, creating a global Action Learning community of business leaders, all following the same steps to success.

CEO MAGAZINE

CEO21_042-046_BSN.indd 44

03/02/2016 18:45


MBAMBA PROGRAMME PROGRAMME TESTIMONIALS SELECTION

The Action Learning MBA Alexandra Skinner discovers more about Business School Netherlands’ flagship programme.

B

usiness School Netherlands (BSN), a Dutch University of Applied Sciences, has been developing business professionals for 28 years. The business school believes passionately in meeting the training and development needs of business managers. The school's flagship International Action Learning MBA (IALMBA) programme has been built on the firm belief that it is the best option for a business world that is constantly changing and needs an MBA that focuses on real, complex organisational problems. Taught in English, the MBA has grown beyond the boundaries of the Netherlands, creating a global Action Learning community of business leaders, all following the same steps to success; diagnose, plan, do and reflect.

What is Action Learning?

Dyanne Thorn Leeson Netherlands

Muzaffer Sharif Bhutta Pakistan

My expectations and wishes for learning I had before the programme were greatly exceeded. I had expected to become more knowledgeable in cause and effect analyses, a more skillful researcher and judge of information, and more effective at writing reports for organisations and publications. However, I hadn’t anticipated that I would find a great new platform of valuable international contacts and sparring partners; gain insight, experiences, skills and knowledge in a completely different way, receive a high level of coaching from industry experts; gain a newly discovered passion for writing; or experience, firsthand, such a highquality education through distance learning. The programme taught me that although you have to keep the bigger picture in view, in order to really solve problems you have to have a laser sharp look at that particular part of the organisation, research it, take action and monitor the results, and be ready to move on to take on the next challenge!

There are three key reasons that motivated me to select the BSN IALMBA programme. Firstly, the flexible mode of delivery of the programme involving interactive online classes and two 10-day workshops at the campus makes IALMBA an ideal programme for the busy professionals to pursue their MBA studies whilst working. Secondly, unlike conventional MBA programmes, the focus on Action Learning requires students to use their own experience and creativity alongside the application of theory to find solutions to real-life problems within their organisations. Thirdly, I realised that my professional accounting qualification and subsequent experience of over a decade, needed to be supplemented and updated with refreshed knowledge and skills at an international level. I have found the BSN MBA to be an excellent opportunity to pursue my personal as well as professional goals.

Dyanne Leeson, Co-founder & Partner

Muzaffer Bhutta, Director & Company Secretary

at Adrem Shipbrokers Bvba, Antwerp, Belgium.

at Agribusiness Support Fund (ASF), Pakistan.

BSN International Action Learning MBA graduate, 2013.

Current BSN International Action Learning MBA student.

Action Learning centres on the continued development of established talents, growing levels of confidence and optimising obtained competencies. The simplicity of Action Learning is that as a working methodology, it can be implemented into most training and development environments; making it one of the most flexible training tools available. Action Learning requires the student to ask pertinent questions and to probe deep into the issue. The key steps to the success of Action Learning are; diagnosing the problem, planning a means to resolve the issue, implementing the change, and finally reflecting upon the results. Many MBA programmes end at the project write-up, but here the actual learning comes from the implementation and the reflection phase. Business School Netherlands was the first European institution to be affiliated by the World Institute for Action Learning (WIAL).

CEO MAGAZINE

CEO21_042-046_BSN.indd 45

45

03/02/2016 18:45


MBA PROGRAMME TESTIMONIALS SELECTION

Rolando J. Alberto Curacao

Kudirat Adejuwon Nigeria

As someone who takes assessing the quality of an institution very seriously, I researched the BSN website, verified their accreditation, and meticulously looked into their Action Learning method before enrolling. At that time I made a promise to myself: to achieve a respectable level of knowledge that will contribute to society and to my journey for wisdom. Today I can proudly say that BSN has helped me complete this promise. The programme has helped me to improve my managerial skills and the way I approach situations in the workplace. Furthermore, since I started the programme my career has been positively affected and I have been promoted from Team Leader to Manager, and recently to Secretary of the Managing Board. The greatest benefit of the programme was the application of Action Learning principles to problems in my organisation. This made my learning moments more memorable, relevant and certainly worth the investment.

The Action Learning teaching methodology adopted by BSN has been particularly exciting as it ensures that we apply what we learn in class to real-life problems in our organisations. The programme required us to complete a project for which we are asked to solve a problem in our organisation involving an aspect of management, and to proffer solution to this problem through research. In completing the Action Learning Projects (ALPs), I have been able to enhance my leadership, interpersonal and communication skills, which have in turn made me a more effective manager in my organisation. For anyone looking for an MBA programme that enables them to work, study and travel, then the IALMBA at Business School Netherlands is the right one for them. They will have access to an international class and faculty, and the opportunity to apply what they learn to real-life problems in their businesses or organisations, while acquiring the skills needed to be effective managers.

Rolando Alberto, Secretary of the Managing Board at

Kudirat Adejuwon, Human Resource Manager

ENNIA Caribe Holding N.V. BSN International Action

at the Skills Enhancement Centre, Nigeria.

Learning MBA Graduate, 2010.

Current BSN International Action Learning MBA student.

Kevin Holloway South Africa

Azahir Ahmed Sudan

The BSN International Action Learning MBA has been a life changing experience for me. Having completed the programme, I have developed the confidence to meaningfully engage in discussion and work streams involving all elements of the business, which in turn has increased my exposure within the organisation and presented great opportunities for future career advancement. I have a new and fresh outlook on the business environment and approach new challenges with excitement and confidence. Not only has this programme enriched me personally, but my organisation has benefited tremendously from having a member of the management team that has grown and developed competencies that will allow the business to employ the principles of Action Learning, which have already, and will continue to, improve efficiencies within the organisation and exceed shareholder return expectations. In my opinion, the following statement by Marquardt (1999: 7) in his book Action Learning in Action: is a clear explanation of Action Learning, “when you read and are taught, you gain knowledge; when you take action, you gain experience; when you reflect, you gain an understanding of both”.

One of the major highlights of the IALMBA is that the teaching staff reflect their ability to practice what they are teaching and prove the programme’s efficacy within their own companies. The programme has equipped me with valuable knowledge and experience on how to solve problems that I face in the workplace. I was recently transferred to the international relations department at my workplace. Being exposed to a large number of international students with diverse experiences has equipped me with the ability to serve well in this field. I’ve become more open-minded and better able to handle my daily workload more effectively. I am more focused and confident in the actions I take, and in providing my recommendations to senior management.

Kevin J Holloway, Managing Director, Timken South Africa.

Azahir Ahmed, Manager of International Organisations at the Ministry of Communications and Information Technologies in the Public Department of International Affairs, Sudan. Current BSN International Action Learning MBA Student.

Mission Statement  BSN’s ambition is to be an enabler in the development and success of managers and organisations worldwide, through unique Action Learning programmes, providing answers to current management issues.

BSN International Action Learning MBA graduate, 2010. 46

CEO MAGAZINE

CEO21_042-046_BSN.indd 46

03/02/2016 18:45


CEO21_047_Ad - House Ad.indd 47

03/02/2016 18:46


NEGOTIATION: TACTICS AND VALUES

TACTICS VALUES This is an edited extract from The Negotiation Book: Your Definitive Guide to Successful Negotiating, 2nd Edition, by Steve Gates

T

he decisions you take and the way you behave during your negotiations will be influenced by how much power you think you have and by the way your own values or ethics influence your behavior. The tactics you employ will be limited by both how much power you have, whether you have a short – or long-term relationship to consider and this may influence how ethical you choose to be during your negotiations. The dilemma of where the value of fairness fits into negotiation has challenged many organizations. For instance, some organizations

48

who hold strong views on being fair and reasonable may take exception when faced with a trading partner who behaves in a manipulative or irrational manner. On principle, they will not tolerate the behavior and will exit the relationship.

Recognizing the process and the gamesmanship in play The way the balance of power is split, and how it shifts with time and circumstance, means you cannot expect agreements always to be, or appear to be, balanced and fair, or even consistent. You can, however, work towards getting the best

possible deal given the circumstances you face. Some, faced with such situations, turn to tactics and some become victims of the tactics in play. The Complete Skilled Negotiator sees them for what they are and where necessary uses counter tactics to neutralize their effects. I am not implying here what is right or wrong. You will conduct business based on values that are probably different from those of others. This does not make yours right or wrong; it does not make the other party’s values right or wrong. It simply means that our interpretation, understanding, and use of tactics will differ from

CEO MAGAZINE

CEO21_048-049_The Negotiation Book.indd 48

03/02/2016 18:46


NEGOTIATION: TACTICS AND VALUES

The dilemma of where the value of fairness fits into negotiation has challenged many organizations.

others as the implications of making use of them will differ based on your circumstances and our view of what acceptable behavior is made up of. As a general rule, negotiations that focus on short-term agreements with parties with whom we have no ongoing relationship, or prospect of one in the future, are more inclined to gravitate towards value distribution. Tactics tend to be more readily used in these styles of negotiations as the relationships involved tend not to be long term.

A question of choices and personal style Your personal values can, if not managed, directly influence whether you build relationships or whether you enter into combat each time you seek to agree terms. Below are some of the personal attributes to consider and the influence they will exert during your negotiations.   Trust in business has to be earned and is easily broken. It implies that you are good for your word. If you say something will happen, it happens, consistently. You approach the conversation from their perspective, sharing their concerns and working on the problems that you both identify, together. It does not mean that you have to pay by conceding on terms, by offering personal favors or by being more transparent with your interests.  Respect comes from being firm, consistent and reliable. If you are too flexible or concede too easily, the other party will regard you as being weak. In negotiation, everything is possible, but difficult. The fact that it is difficult ensures that the work you put into the deal, engineering the terms, and moving reluctantly, attracts respect for you, your position and your credibility.  Integrity comes from consistency. This can present issues for negotiators who are too focused on not being unpredictable. Maintaining confidentiality and being

reliable, in that you follow through with your commitments, also help promote integrity, which in some relationships or even industries is critical if business is to take place at all. Honesty. You never need to lie in negotiation. You don’t need to tell them what you won’t do. Focus on what you will do. Think “how” or “on what basis could we, or could they?” By telling them what you are prepared to do you are at least maintaining honesty. By telling them you are prepared to pay $100 when you know that you could pay $150 is not lying. Don’t confuse the process of negotiation with lying and telling the truth. If you lie in negotiation, you could be taking unnecessary risks, and in some cases completely compromising relationships, however, don’t expect everyone to adhere to this discipline. Consideration of the needs of the other party. If you don’t understand these you are not ready to negotiate. Your planning, preparation, research, and exploration meetings are all there to help you to establish their position, motives, priorities, and interests. To place a value on these you have to understand the deal the way they do business from inside their head. Considering the facts will allow you to remain sensitive to the issues and respectful where necessary. Empathy is about understanding and appreciating the challenges from their perspective, but never compromising because of such understandings. Responsibility. It is you who will conduct your negotiations and you who will make the decisions with the authority limits you have been given. The more trust that genuinely exists within your relationships, the more scope you have to open up the agenda and work together creatively. This will only come about if you cultivate the necessary climate and discussions.

Risky attributes  Openness. This can be dangerous in negotiation. Information is power and the more you share with the other party, the more you will expose yourself. Be open but stay within the parameters that you set yourself. If you don’t understand this from the outset you will place yourself in a very vulnerable position.  Compassion. In the tough world of business your job is to maximize opportunity. You will do this with those you can work with and rely on, and who remain highly competitive. This is a capitalist market we operate in. Compassion, like generosity, has to take a back seat once a negotiation commences unless of course you have a longer-term plan in mind.

Biography  Steve Gates is a world expert in negotiation. He is the founder and director of the Gap Partnership, the world’s leading negotiation consultancy. Through the Gap Partnership, Steve has consulted on high level negotiations to many blue-chip companies, advising on everything from the M&A of high street retailers, to trade term negotiations for FMCG companies and price increases for oil companies. Prior to the Gap Partnership, Steve held several senior corporate roles at companies including Dixons and Coca Cola. The Negotiation Book: Your Definitive Guide to Successful Negotiating, 2nd Edition, by Steve Gates, published by Capstone, November 2015.

CEO MAGAZINE

CEO21_048-049_The Negotiation Book.indd 49

49

03/02/2016 18:46


LIST OF CONTRIBUTORS

List of Contributors A

H

Annet Aris Australian Institute of Business

Heidrick & Struggles

B Bernhard Kraus Business School Netherlands

I INSEAD Knowledge K

D

Karen Robb

Darmstadt University

R

E

Ralf Schellhase Randel S. Carlock

European University G Grant Thornton

S Steve Gates T Technical University of Munich U University of Oxford: Sa誰d University of Pennsylvania: Wharton W Wendy Nicholls

50

CEO MAGAZINE

CEO21_050_Contributors.indd 50

03/02/2016 18:51


CEO21_IBC_Ad - KSU.indd 51

03/02/2016 18:55


CEO21_OBC_Ad - European University.indd 52

03/02/2016 18:55