EIGHT TIPS FOR CAREER RE-ENTRY ceomag.co.uk / Spring 2016
FIVE LEADERSHIP STYLES IN A NUTSHELL
THE MOST INFLUENTIAL CEOS ON TWITTER
THE ONE PLANET MBA: CHANGE - FOR GOOD
of our graduates had a job waiting for them when they completed their MBA, with virtually all securing a job within 1 year
of our graduates received at least one promotion or changed jobs for increased salary
THE SPECIALIZED MBA. PROVEN EVERYWHERE. An MBA uniquely focused on pharmaceutical and healthcare business.
Leveraging almost 200 years at the forefront of the pharmaceutical industry, University of the Sciences delivers an MBA uniquely focused on pharmaceutical and healthcare business with: • flexible online, evening, and certificate programs • direct access to faculty, including former CEOs and senior industry executives who have their fingers on the pulse of the pharmaceutical and healthcare industries • small class sizes so you can interact and explore the business of healthcare collaboratively Whether transitioning to a new career or growing within your current field, investing in an MBA in Pharmaceutical and Healthcare Business from USciences pays satisfying long-term career dividends.
ceomag.co.uk / Spring 2016
EIGHT TIPS FOR CAREER RE-ENTRY
GLOBAL MBA RANKINGS
THE ONE PLANET MBA: CHANGE – FOR GOOD
MILLENNIALS DON’T WANT FUN; THEY WANT YOU TO LEAD BETTER
A DEGREE AHEAD: WHAT CAN EDUCATION LEARN FROM AN MBA
Australian Institute of Business
ceo-mag.com / Summer 2016
Achieve a global advantage with the AIB MBA. As ‘The Practical Business School’, AIB is committed to serving the needs of working professionals around the world by offering courses which are accelerated, applied, accessible, affordable and accredited.
Why choose AIB for your MBA? FULLY ACCREDITED AND INTERNATIONALLY RECOGNISED MBA PROGRAMME
ENDLESS BENEFITS FOR YOU AND YOUR EMPLOYER
FAST-TRACK YOUR LEARNING AND YOUR CAREER IN 12 MONTHS
LIFELONG LEARNING AS AN AFFORDABLE INVESTMENT
CONNECT TO OUR GLOBAL EDUCATION NETWORK
Australia’s Largest MBA Provider Start your AIB MBA today and find out what makes our MBA the most popular in Australia. With over 2,500 graduates across more than 80 2 countries worldwide, AIB is full accredited and internationally recognised.
ceo-mag.com / Summer 2016
There is no limit to the advantage the MBA gives you. The strategic knowledge I have gained and continue to use from my MBA is something I couldnâ€™t have learnt from my practical experience alone. Janine Copelin Managing Director â€“ Head of Retail, Citibank AIB MBA Graduate
ENQUIRE TODAY 12monthmba.com.au ceo-mag.com / Summer 2016
THE DOWNSIDE OF MAKING A BACKUP PLAN â€“ AND WHAT TO DO ABOUT IT
University of Pennsylvania: Wharton
THE GROWTH OF WOMEN IN MBA EDUCATION
THE MOST INFLUENTIAL CEOS ON TWITTER
THE SPECIALIZED MBA AT THE UNIVERSITY OF THE SCIENCES
European Business School
NO ORDINARY EXECUTIVE MBA Laurie Walker
ceo-mag.com / Summer 2016
ceo-mag.com / Summer 2016
WILL TUITION CONTINUE TO RISE? A LOOK AT HOW BUSINESS SCHOOLS EARN THEIR INCOME OFFERS A CLUE Santiago Iniguez
FIVE LEADERSHIP STYLES IN A NUTSHELL George Kohlrieser
THE GLOBETROTTER’S GUIDE TO MERGER CONTROL: HOW TO AVOID FALLING INTO TRAPS
Jérémie Jourdan, Sophie Sahlin, and Mina Gregow
LIST OF CONTRIBUTORS
ceo-mag.com / Summer 2016
CEO Victor J. Callender
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the one planet
Change â€“ for good
ceo-mag.com / Summer 2016
Study an MBA at a Global Top 100 University Progressive Management Education APPLY NOW
EIGHT TIPS FOR CAREER RE-ENTRY
Resurrecting your career after a long break is not easy. But stories of those who went through the transition can teach us how to better navigate a way back to work.
o-one wants to have to choose between staying on their career path and tending to urgent personal needs that may crop up. But that’s the essential situation faced by countless professionals, given how difficult it has become to return to work after even a couple of years away. In addition to degrading employees’ quality of life, this blind spot in the business world costs companies dearly due to the premature termination of far too many promising careers. It’s also a major setback to gender equality. Nearly half of all women who leave work to raise children don’t go back, which is especially troubling as women constitute 95 per cent of those who take a career break for child-raising or family caring. This statistic was related to us by Julianne Miles, co-founder of a revolutionary firm called Women Returners, which exists to facilitate the return of women to the workplace. Sadly, those who successfully resurrect their careers after a hiatus are the exception rather than the rule, but we interviewed executives who have done it to find some tips for returners. It never seems to be as simple as picking up where they left off, but the coping strategies they developed made their careers even stronger. The elusive “second career” Argyro had no intention of leaving her job as general manager of the Greek subsidiary of a major
travel retail company, until she learned she was pregnant with her first child. This came at the same time that her company was being acquired. Her reluctance to be in the post-merger structure, as well as to sacrifice time with her baby led her to part ways amicably with her employer, but she was not planning a long break. However, another pregnancy prolonged the gap. She mulled starting over with a “second career”. This reflection showed her that what she most enjoyed was “creating beautiful teams of talented people and helping them grow”. So, she did a second degree, this time in Strategy and HR Management, while still pregnant for the second time. After a failed attempt to return to work after baby number two, Argyro managed to get back after number three, once she had realised that she needed to use her consulting experience as the lever. She spent one year happily developing her abilities, after which she was called by a London-based multinational spirits and beverage company, to work as HR Director for Greece. From there, she quickly advanced to roles of increasing seniority within Europe. Ref lecting on her career and life journey, Argyro says her husband’s support has been crucial. He is a very participative parent, and things are equitable between them. They work as a partnership, and balance and development are a priority for both of them. ceo-mag.com / Summer 2016
8 TIPS FOR RETURNERS
1. CLARIFY YOUR GOALS Take stock and use your time to explore what you want to do and where you want to be in ten years’ time.
5. SEEK FAMILY SUPPORT Secure financial, mental and emotional support from your partner, agree how you will rebalance or switch times and roles, look for help from participative parents.
2. UPDATE YOUR SKILLS AND KNOWLEDGE Stay current in your field, upgrade your credentials, invest in relevant training, do volunteer work to learn or hone skills.
6. BOOST YOUR CONFIDENCE Be clear about your strengths. Emphasize the value you can bring to an employer rather than your time away.
3. USE CREATIVE JOB SEARCH STRATEGIES Classic job search tactics won’t work; headhunters will ignore you. Mine neighbourhood or local job opportunities, investigate ‘returnship’ programmes.
7. BE PREPARED TO COMPROMISE Get ready to adjust your standards of living. Consider part-time, interim or freelance work.
4. NETWORK IN DEPTH Reactivate and broaden your professional and personal networks for feedback, support, advice and leads.
8. BUILD RESILIENCE EARLY ON Be prepared to navigate multiple career breaks and non-controllable events. Learn to develop a flexible attitude.
ceo-mag.com / Summer 2016
“This blind spot in the business world costs companies dearly due to the premature termination of far too many promising careers.”
Full-time fatherhood Tim also made a choice to value parenting over corporate life, though in a very different way and order than that used by Argyro. One evening, he came home from a long business trip to Africa, to find a little note on his bed from his nine-yearold daughter, asking that he attend a “meeting” with her ASAP. The next day, she explained, “Daddy, how can I love you if I never see you?” Tim resigned only ten days after this bombshell, fortunately in the knowledge that his wife had been offered an opportunity to take a role in the European headquarters of P&G. Moving to Geneva in itself was not a big challenge, but his new role as full-time father took more getting used to. While Tim was occupied with several other projects at the time, such as a role in a small start-up and designing and building a house, he describes his role of father as occupying 90 per cent of his time. As his daughters grew bigger, Tim’s question became, “Can I mix the important parts of being a dad with the world of work?” Serendipitously, he was contacted by a consultancy firm and he took on a project, which led to another, and now he is helping them to develop their business. This is facilitated by a very actively present grandmother, who supports and helps out willingly. Tim says his experience as a full-time dad made him a better decision-maker. He says he is much better at identifying and setting priorities, and bringing the right mix of emotion and practicality to any choice he faces these days. When quizzed on how this works out for the couple, he is unequivocal: It only works if the two are perfectly aligned, and it helps tremendously if there is capital already saved so as to avoid a drastic drop in lifestyle. As he says “nobody is deprived, but we do control our spending in a way we would not have done a few years ago”. Defeating the odds Shortly after 9/11, Mui Gek, a Singaporean national with a successful career in retail leasing, and her French husband decided to move together to his native country. She aimed to use her experience to enter the French luxury goods industry, starting out by studying the language and earning an MBA in a local business school. It was a mammoth task for Mui Gek to find a job in a tough market, as a visibly and audibly very foreign person in a provincial French city. She created from scratch an extensive network, from her immediate friends, MBA teachers and family. Her tireless efforts netted a job with a family business, overseeing a large project to explore the Chinese market for shopping centres. While pregnant with her first child, Mui Gek and her husband decided she would take a break to have the baby and to figure out her next move. However, less than two years later, they found themselves with a toddler and newborn twins. When the twins were coming up to two, she started to feel it was time to return to work.
Yet again, networking skills came to the fore. This time, it led to an introduction to none other than Antoine Tirard, the co-author of this article, who was at the time recently appointed as head of talent at LVMH. Mui Gek’s mix of skills was unusual, to say the least, and not one that neatly fit with any particular vacant job in the luxury group. Her difference was that, beyond her obvious real estate and retail experience, she had doggedly stayed up to date on workplace issues, on fashion, luxury and more. This was the clincher. Eight months later, she received a call from LVMH who had decided to create a new role as the company felt their real estate strategy lacked coordination, and an expert hand with negotiation and diplomacy skills could be a great asset. She got the job. Networking ceo-mag.com / Summer 2016
ACKNOWLEDGEMENT Antoine Tirard, (INSEAD MBA ‘97D), is a talent management advisor and the founder of NexTalent. He is the former head of talent management of Novartis and LVMH. Claire Lyell, (INSEAD MBA ‘92J), is the founder of Culture Pearl and an expert in written communication across borders and languages. Republished with permission from INSEAD Knowledge, the expert opinion and management insights portal of INSEAD.
furiously to make friends and allies and using her unique blend of knowledge, passion and persuasion helped her create a hitherto unheardof collaboration between previously hostile, competitive brands, and she has been offered increasingly interesting developmental roles. Getting better We are aware that the people profiled above are some of “the lucky ones”. They have been supported by family and comfortable finances, however difficult this balancing act may have been. The balance is a lot harder to find if you are on your own and there is no loving grandma around to babysit - a reality faced by millions. But generally, hope is improving for anybody in this situation. A growing number of financial ceo-mag.com / Summer 2016
institutions and professional service firms including Morgan Stanley, Credit Suisse, RBS, JP Morgan, and Lloyds Bank - have introduced ”returnship programmes” for high-calibre professionals who are ready to return to corporate life after having hit the pause button. So far, Goldman Sachs in the US reports offering permanent positions to fully half of their returnship participants. More recent data on UK returnship programmes suggest that retention rates may be even higher. Clearly, there is much to be gained and to be done: both for corporations who could undoubtedly make these returns easier, and for the returners themselves, who must battle history, tradition and tough circumstances with courage every single day.
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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.
o, 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. 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 below, and should help to provide that quality benchmark.
NORTH AMERICA TIER ONE American University: Kogod Auburn University Boston University: Questrom Bryant University California State University-Chico California State University-Long Beach California State University-San Bernardino California State University-East Bay Case Western Reserve University: Weatherhead Chapman University: Argyros College of William and Mary: Mason** Colorado Technical University Drexel University: LeBow** Florida International University Fordham University Georgetown University: McDonough Georgia State University: Robinson 12
Gonzaga University HEC Montreal Hult International Business School Jacksonville University Kennesaw State University: Coles Kent State University Loyola Marymount University Loyola University Chicago: Quinlan Lynchburg College Marquette University Mercer University-Atlanta: Stetson Millsaps College: Else Niagara University Northern Illinois University Pepperdine University: Graziadio Purdue University-West Lafayette: Krannert* ** Queens University of Charlotte ceo-mag.com / Summer 2016
Rensselaer Polytechnic Institute: Lally Rochester Institute of Technology: Saunders Seattle University: Albers Saint Joseph’s University: Haub Saint Mary’s College: School of Economics & Business Administration Temple University: Fox Texas A&M University-College Station: Mays Texas Christian University: Neeley The University of the Sciences University of Alberta University of California at Berkeley: Haas University of California at Davis University of California-San Diego: Rady University of Cincinnati: Lindner University of Colorado-Colorado Springs University of Connecticut University of Delaware: Lerner** University of Hawaii-Manoa: Shidler University of Louisiana-Lafayette: Moody
University of Massachusetts-Boston University of Massachusetts-Lowell University of Michigan-Flint University of North Carolina-Charlotte: Belk** University of Notre Dame: Mendoza University of Oklahoma: Price University of Oregon: Lundquist University of Pittsburgh: Katz University of Richmond: Robins University of South Florida: Muma University of Tampa: Sykes* ** University of Texas - Arlington University of Texas-Dallas: Jindal University of Utah: Eccles University of Vermont: Grossman University of West Georgia University of Wisconsin-Milwaukee: Lubar Virginia Commonwealth University Virginia Tech: Pamplin Willamette University: Atkinson
TIER TWO Appalachian State University Boston College: Carroll* ** Bowling Green State University Cleveland State University: Monte Ahuja Fairfield University* Iowa State University Northwest Missouri State University Oakland University University of Akron University of Baltimore*
University of Florida: Hough University of Kentucky: Gatton University of Nebraska -Lincoln University of Nevada-Las Vegas: Lee University of North Carolina-Wilmington: Cameron University of Notre Dame: Mendoza* ** University of Washington: Foster Wake Forest University Washington State University: Carson
EUROPE TIER ONE Aston Business School Audencia Nantes Birmingham Business School Brunel Business School Business School Netherlands Carlos III University of Madrid Copenhagen Business School Durham University Business School École des Ponts Business School ESADE Business School EU Business School
HHL Leipzig Graduate School of Management IE Business School IESE Business School ISEG Lisboa School of Economics & Management LISBON MBA MIP Politecnico di Milano Porto Business School SBS Swiss Business School Solvay Brussels School of Economics and Management
Toulouse Business School Trinity College Dublin School of Business UBIS University of Amsterdam University of Exeter University of Liverpool Management School University of Sheffield Management School
Sydney Business School 4 University of Southern Queensland =5 Central Queensland University =5 Griffith University
6 RMIT University 7 Deakin University
AUSTRALIA TIER ONE 1 Australian Institute of Business 2 Victoria Graduate School of Business 3 University of Wollongong ceo-mag.com / Summer 2016
GLOBAL EMBA AIX Marseille Graduate School of Management Europe Auburn University North America Audencia Nantes Europe Australian Catholic University Australia Boston University: Questrom North America California State University-Long Beach North America California State University-East Bay North America Case Western Reserve University: Weatherhead North America CENTRUM Católica Graduate Business School South America Chapman University: Argyros North America College of William and Mary: Mason** North America Copenhagen Business School Europe École des Ponts Business School Europe ESADE Business School Europe EU Business School Europe Florida International University North America Fordham University North America Georgetown University: McDonough North America Georgia State University: Robinson North America HEC Montreal North America HHL Leipzig Graduate School of Management Europe Hult International Business School North America IE Business School Europe IESE Business School Europe IfM Institut für Management Europe Jacksonville University North America Kedge Business School Europe Kennesaw State University: Coles North America Kent State University North America Lorange Institute of Management Europe Loyola Marymount University North America Maastricht University Europe Marquette University North America Mercer University-Atlanta: Stetson North America Millsaps College: Else North America MIP Politecnico di Milano Europe Northern Illinois University North America Pepperdine University: Graziadio North America Porto Business School Europe Queens University of Charlotte North America RMIT University Australia Rochester Institute of Technology: Saunders North America Rutgers Business School North America Saint Joseph’s University: Haub North America
Saint Mary’s College: School of Economics & Business Administration North America SBS Swiss Business School Europe Solvay Brussels School of Economics and Management Europe Stockholm School of Economics Europe Technische Universität München (TUM) Europe Temple University: Fox North America Texas A&M University-College Station: Mays North America Texas Christian University: Neeley North America Trinity College Dublin School of Business Europe UBIS Europe University of Alberta* North America University of California at Berkeley: Haas North America University of California-San Diego: Rady North America University of Exeter Europe University of Hawaii-Manoa: Shidler North America University of Kentucky: Gatton North America University of Nevada-Las Vegas: Lee North America University of Notre Dame: Mendoza North America University of Oklahoma: Price North America University of Oregon: Lundquist North America University of Ottawa: Telfer North America University of Pittsburgh: Katz North America University of South Florida: Muma North America University of Texas - Arlington University of Texas-Dallas: Jindal North America University of Utah: Eccles North America University of Washington North America University of Wisconsin-Milwaukee: Lubar North America University of Wollongong Sydney Business School Australia Virginia Commonwealth University North America Washington State University North America Bowling Green State University North America Cleveland State University: Monte Ahuja North America Drexel University: LeBow** North America Loyola University Chicago: Quinlan North America Oakland University North America Seattle University: Albers North America University of Connecticut North America University of Florida: Hough North America University of Louisiana-Lafayette: Moody North America University of Tampa: Sykes* ** North America Virginia Tech: Pamplin North America
ceo-mag.com / Summer 2016
GLOBAL ONLINE EMBA Rank School 1 EU Business School 2 SBS Swiss Business School 3 UBIS 4 Durham University Business School =5 Queens University of Charlotte =5 EuroMBA =5 Australian Institute of Business =6 IE Business School =6 The Open University 7 University of Utah: Eccles 8 Temple University: Fox 9 CENTRUM Católica Graduate Business School 10 Aston Business School =11 Pepperdine University: Graziadio =12 Georgia WebMBA =12 Jack Welch Management Institute =12 Rochester Institute of Technology: Saunders =13 University of Massachusetts-Lowell =13 Griffith University 14 Colorado Technical University 15 California State University, San Bernardino
Region Europe Europe Europe Europe North America Europe Australia Europe Europe North America North America South America Europe North America North America North America North America North America Australia North America
Rank School Region =16 Mercer University-Atlanta: Stetson North America =16 Saint Mary’s College: School of Economics & Business Administration North America =17 Deakin University Australia =17 The University of the Sciences North America 18 St. 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 =21 Washington State University North America 22 University of Delaware: Lerner** North America 23 University of Texas-Dallas: Jindal North America 24 Florida International University North America 25 Drexel University: LeBow** North America 26 University of Baltimore* North America 27 University of Nebraska -Lincoln North America 28 Auburn University North America 29 University of Florida: Hough North America 30 Cleveland State University: Monte Ahuja North America 31 Northwest Missouri State University North America
The Cambridge Executive MBA
“ Cambridge is an open gateway to an extraordinary wealth of people, knowledge and ideas: there was no better place to put my entrepreneurial skills to the test.” Benoit Gauthier, Head of Finance & Administration, Airbus Helicopters Chile Co-founder of The Cambridge Nano-Manufacturing Alliance Cambridge EMBA 2011
The Cambridge Executive MBA is a 20-month degree programme for senior executives.
See where it takes you
ceo-mag.com / Summer 2016
THE ONE PLANET MBA: CHANGE – FOR GOOD Alexandra Skinner speaks to Exeter Business School’s Nicolas Forsans 16
ceo-mag.com / Summer 2016
more advanced provide participants with the knowledge and the skills to generate business insights by leveraging ‘big data’. Our current focus on new business models generally, the sharing economy and the circular economy in particular is cutting edge.
Our Value Proposition n An academically rigorous and practical MBA education from a Global Top 100, UK Top 10, Russell Group University n Co-delivered and supported by our partner FTSE 100 and other progressive organisations n Promotes the application of ‘fresh’ learning to real problems in a workplace environment with our partners n Targeted at middle level professionals wishing to develop into senior roles convinced of the need to innovate and create new business models to succeed in a risky, volatile and disruptive business environment n A focus on profound personal and professional development to accelerate your career and/or explore new directions
Key takeaways n An understanding of how global economic, soci a l , env i ron ment a l a nd tech nolog ica l challenges impact on business, strategy and leadership n An appreciation of the role innovation, entrepreneurship and intra-preneurship in fostering growth in organisations that are at the frontline of change n The knowledge, skills and tools to design and implement new business models that deliver organisational growth whilst addressing global business challenges and promoting sustainability n The management and leadership capabilities to ignite, lead and manage change in a cross cultural setting This is achieved through an experiential and collaborative learning experience that blends theory with practice through joint delivery of the programme by MBA Faculty, experts in their fields, and leading corporate partners that experience change in all aspects of their business. We offer two programmes that share the same curriculum: Full-Time (Sept to Sept) and Executive (24-36 months, for those wishing to work full-time while studying).
Key objectives To develop responsible business leaders with an acute understanding of the global challenges we face, and equip them with the knowledge, skills and tools to design innovative business solutions and new business models to improve organisational resilience and generate new opportunities – for themselves and their organisation. The focus of the MBA towards innovation and new business models reflects changing trends in business and society and ensures the programme remains fresh, innovative and at the forefront of thinking and business practice. Programme design is not only innovative, with ample opportunities for participants to acquire new skills, update their knowledge and leverage their experience to contribute innovative business thinking through real time business challenges and assignments, but the curriculum of the One Planet MBA is also at the forefront of thinking and practice. We work closely with our leading corporate partners, all at the frontline of change – and they help us shape the MBA curriculum and they co-deliver the programme with us. The One Planet MBA was one of the very first MBA programmes in the world to embed sustainability in the MBA curriculum, and provide core education and training in analytics, initially through a two-day masterclass. Today, two separate modules, one introductory and one
Programme Structure The programme is structured in a way that enables participants to transition back into the world of study. This is important as many participants might have been out of education for a number of years. The programme starts with a one week MBA Boot Camp programme aimed at equipping participants with the required study, writing, team-working, presentation and communication skills to ensure their readiness for MBA studies. The first term of the programme ensures participants gain a thorough education in core business disciplines, such as economics, marketing, accounting, finance, operations and leadership. Term two focuses on the solutions to tackling the world’s greatest business challenges and is structured around more advanced core modules, such as Emerging Business Models, Managing Strategic and Responsible Innovation, Generating Insights through Analytics, The Entrepreneurial Mindset while term three enables participants to start planning their MBA consultancy project, apply the knowledge gained in terms one and two and customise their programme through elective modules. We place a great deal of emphasis on the integration of learning across key business functions - this takes place through two corporate challenges half way through, and at the end of
About the One Planet MBA he programme is specifically targeted at middle level managers wishing to develop into leadership and senior management roles, transform themselves and their organisation and thrive in a world that is facing significant social, economic, environmental and technological challenges. Through an MBA curriculum that revolves around innovative business thinking and emerging business models, we equip our participants with the tools, the knowledge and the skills to develop new business models and the capabilities to lead and manage change in their organisation, or create their own start-up.
ceo-mag.com / Summer 2016
term one. Those corporate challenges enable participants to consolidate their learning across core modules and apply it to address a real-time challenge set by a sponsor organisation (previous challenges were set by The White Company, Coca Cola, and most recently IBM). Integration of learning is further facilitated through two advanced core modules, Emerging Business Models at the very end of term one and Leading in the Fourth Industrial Revolution – both of which act as capstone modules. Throughout the year, extra-curricular activities and events are embedded in the MBA to enable participants to network with our corporate partners, employers and programme alumni while entrepreneurial participants take part in regular Exeter’s “Start Up weekends” organised by the University’s Innovation Centre and supported by Google, “Pitch It & Win It” informal pitching practice events held in the MBA while the MBA’s White Space enables participants to put their knowledge into practice and acquire the skills to design and pitch innovative business solutions to solving the world’s greatest problems through challenges and competitions. The MBA concludes with a four month consultancy or entrepreneurship-based MBA project that enables participants to apply their learning across the programme to address a real business challenge. Business Model Innovation Business model innovation is core to the One Planet MBA – there is only so much one can do by tweaking, refining and improving the effectiveness of distinct business functions. It is only by reconsidering their whole business model that today’s leaders can ensure long-term success. As the boundaries between distinct industries are blurring, established players that previously operated in a different industry suddenly become your competitors. Witness, for example how the telecoms, music and publishing industries have merged in the past decade, with players originally coming from different industries all competing in that same space. Our f irst MBA module sets the scene in terms of the global challenges business faces, then introduces participants to the tools and the frameworks they will use throughout the year to design new business models, such as the business model canvas and the value proposition toolkit – an essential toolkit for any business leader to critically assess the resilience of their organisation and its long term viability. Because we operate in an increasingly complex, volatile, interconnected and risky environment, no organisation can tackle its challenges on its own. Therefore, it is also through collaboration and partnerships that organisations can transform themselves, and we place a great deal of emphasis on the MBA in developing that collaborative mind-set. The One Planet MBA is first and foremost a collaborative
learning experience that equips participants with the mind-set, as well as the toolkit to thrive in a constantly evolving world. A Hands-on Learning Experience While many MBA programmes claim to work closely with industry, few provide the hands-on learning experience the One Planet MBA is well known for. Our approach to learning is built around the active involvement of our corporate partners – e.g. IBM, SAP, Thomson Reuters, Lafarge, Coca Cola and many other client organisations: all are leading, progressive organisations that choose to partner with our MBA because they are experiencing change and disruption to their business models. They come to us and benefit from the insights our MBAs generate and they play an active part in the delivery of our modules while setting real-time challenges for our participants to work on. So, in our module on Strategic Innovation, our MBAs undertake an innovation audit of our partners and produce a set of recommendations to improve the effectiveness of their innovation efforts. In Emerging Business Models, we worked this year with Barclays, the Fairtrade Foundation and Accenture Development Partnerships to help them improve their business models. Our Consulting module is co-taught by consultants at PwC and Accenture who share their experiences of consultancy with our participants and prepare them for the demands of the role while some of our modules are entirely led and delivered by our partner organisations, e.g. SAP in Analytics. T he One Pla net MBA incor porates t wo capstone experiential learning opportunities: the MBA project, which our participants undertake at partner organisations, and our corporate challenges that are set by leading partners at the frontline of change: Coca Cola last year, The White Company and IBM this year. So it is a winwin: participants learn from the practitioners we engage with while our corporate partners get real insights and analyses from some of the brightest minds in the country. Corporate Connections We h ave develop e d env i a ble work i n g relationships with leading, FTSE100 organisations that have supported us since the creation of the One Planet MBA five years ago. Those working relationships exist for the exclusive benefit of our course participants, and they benefit in four main ways. 1. Our corporate partners shape the One Planet MBA curriculum. Our MBA Corporate Advisory Board meets twice a year and reviews our MBA curriculum, ensuring it is fit for purpose and relevant to their needs. It is our corporate partners that encouraged us to prepare our MBAs for the impact of the digital disruption they are experiencing all around them, in particular on business models and strategies. So our Corporate
ceo-mag.com / Summer 2016
Advisory Board plays a key part in ensuring the MBA curriculum remains cutting edge. 2. By involving our corporate partners and a wider range of client organisations in the delivery of the programme, we provide our participants with a fantastic, experiential learning opportunity through our MBA corporate challenges, practical in-company short assignments and projects. 3. We invite all our partners and clients to pitch their needs with the view to place our MBAs in those organisations for their MBA project; IBM offered us four projects this year, SAP six, and we placed our MBAs at Marks & Spencer, the White Company, PwC and many others. Most, if not all projects on offer, were taken by our MBAs this year, which is great. 4. We encourage our MBAs to engage with our corporate partners and clients through the networking events we organise for them several times a year when they’ve got a chance to find out more about each other, discuss the business challenges that they face and work together. Addressing Real-world Business Needs There is no doubt the pace of change has accelerated since the turn of the century, and this is something all our partners from the corporate sector are telling us. A more complex and interconnected world generates growing challenges, and in this context having the right mind-set may be as important as having the right skills. To lead and manage organisations at the frontline of change business leaders need a mind-set that is collaborative, entrepreneurial and analytical. Given market demands, we recently increased our investment in our personal development training a nd created a yea r-long Persona l Transformations module designed to bring together leadership and personal development for a more integrated approach to the development of our MBAs. We also created a new module that specifically prepares our MBAs to “ignite, lead and manage change in organisations”. This mind-set collaborative, entrepreneurial and analytical - is at the heart of the One Planet MBA, and through the various challenges and in-company assignments our MBAs undertake during their studies, they develop not only an appreciation of the pace of change, but they also develop the capabilities that are needed to lead and manage successful organisations in such a volatile environment.
of career tools. We coach our MBAs on a one-toone basis, helping them develop an appropriate strategy to achieve individual post-MBA career goals. Coaching is facilitated by a range of experts including business mentors and our MBA careers adviser. Our corporate partners are also involved in the professional development of our MBAs they host practice employment interviews which are then followed by personal feedback on their interview technique. Career development is only a part of our approach to professional development. Each module and MBA activity is designed to help our MBAs develop into more senior management roles, with a focus on promoting an entrepreneurial and analytical mind-set and the skills to develop innovative business thinking and the capabilities to ignite, lead and manage change in organisations. Into The future Our MBAs value the personal approach to their development that we provide them with, and this is something we work very hard to deliver. If we project ourselves into the future only one thing is certain: the business environment will become even more complex and volatile. The digitalisation of the economy is only at its beginning. Today, we are talking about the connected home and smart meters. Tomorrow, augmented reality, the internet of things and machine learning will play a growing part in our lives and will disrupt established business strategies. Future business leaders will need to appreciate what those challenges mean for their organisation and how they will disrupt their business model. In a marketplace dominated by undifferentiated MBA programmes all promising fantastic careers, our focus on innovation and new business models has never been more current and relevant to the needs of global organisations that are seeking to remain relevant in a world that is changing around them and threatening to disrupt them. The One Planet MBA is Exeter University’s contribution to the business world, and the various awards we have won and rankings that we secured since its creation is evidence of the impact we are having on the sector.
BIOGRAPHY Professor Nicolas Forsans is Director of One Planet MBA Programmes at the University of Exeter Business School.
Professional development Personal and professional development are at the heart of the One Planet MBA. Our MBAs are offered a career development programme led by our careers adviser and contributed to by recruitment specialists and corporate partners. The programme starts with self-assessments to identify individual strengths, skills, motivations, interests and career achievements using a range
ceo-mag.com / Summer 2016
MILLENNIALS DON’T WANT FUN; THEY WANT YOU TO LEAD BETTER MARK C. CROWLEY
“Digital intelligence is more about smart data than big data.”
fter more than a decade of effort, American businesses still have not figured out how to successfully motivate, inspire - and keep - millennial workers. According to a new and comprehensive Gallup study, employees aged 20- to 36-years-old are the least engaged generation in the workplace by far. On top of that, 21 per cent quit their jobs last year, and 60 per cent say they’re floating their résumés right now! For all the companies that tried to win over their ‘Gen Y’ workers by paying down their student loan bills, introducing free energy drinks and making the hoody acceptable office attire, these stats may seem galling. Perhaps we should all just accept that this is simply a group of needy and entitled people who’ll never be truly happy or loyal at work? Not so fast. Gallup’s research reminds us that millennial workers grew up very differently to previous generations, and have a unique set of values, needs - and worldview - as a result. What’s evident is that this is no slacker class, nor are they hardwired to be disloyal. What they are is demanding. They know very clearly what they want in exchange for their work, and have proved very willing to keep looking until they find it. Remarkably, this is a generation of workers that rejects traditional ways, and fully expects their bosses and organizations to adapt to them. It’s a stunning fact that millennials already represent 40 per cent of the American workforce - and that number will nearly double in just 10 more years. While some of us may have resisted changing how we lead in response to the demands of millennial workers, the conclusion of the research is that we must act now. Importantly, the most progressive organizations are already on their way. What Shaped The Millennial Mindset Back in June, Gallup published How Millennials Want To Work And Live, an in-depth look at what defines millennials as employees. After digesting all 150 pages, I sat down with Gallup’s long-time Research Director, Dr. Jim Harter, and asked him to explain the key life experiences that shaped the Gen-Y personality. Here are the big three:
(1) They Observed The Work-Driven Stress Levels Of Their Parents As children, many millennials came home from school to an empty house (”latch-key kids”) and felt the brunt of not having their parents readily available. They saw how a 40-hour workweek came to represent the bare minimum expected by organizations, and how their parent’s stress levels often proved toxic. The millennial pivot: a generation far less willing to sacrifice their lives for work. They want to be judged on their results, not time spent on the clock. (2) Traveling Teams And Helicopter Parents While the Baby Boomer and Gen-X generations played Little League and soccer growing up - and one activity at a time - millennial parents had their kids over scheduled. They participated in cheerleading camps, Taekwondo, music lessons, water polo, and highly competitive traveling teams often at the same time. Perhaps in response to not being able to spend time with them during the workweek, parents attended all of their children’s weekend events - praising and encouraging them all along the way. The millennial pivot: A generation that needs much more frequent feedback and approval, and expects highly personalized attention from their bosses. (3) They’re The Most Technologically Connected Generation Ever This is the first generation to grow up with immediate and broad access to information due to technology. And because of social media, millennials are not only far more attuned to what other people think, they have far greater insight into how other people feel in their jobs. T he millennia l pivot: T hey have a huge awareness of what other job opportunities are available, and great visibility into the leadership cultures at other organizations. They may also operate with an idealistic expectation that getting whatever they want should happen quickly. ceo-mag.com / Summer 2016
â€œThis is no slacker class, nor are they hardwired to be disloyal. What they are is demanding.â€?
ceo-mag.com / Summer 2016
Millennials Are Pushing Organizations To Fully Reinvent How They Lead And Manage Gallup has identified a list of key functional changes managers must make in order to more successfully inf luence millennial workers. Collectively, they represent a comprehensive redefinition of what all 21st Century workers seek from work today. Millennials are simply the first generation to insist upon them: (1) They Want To Know Their Work Has Purpose “Deep inside of us there is a primal desire to do something important in life,” said Oracle CEO, Larry Ellison, and fulfilling this need is a huge driver of millennial engagement. Gallup’s data proves that millennials are not a generation that wants everything handed to them, nor do they prioritize having a fun workplace over their own growth, development and feelings of fulfilment. “What they want,” Harter told me “is to know their work matters. They want accountability and a sense of significance through their own accomplishments.” As someone who brilliantly leads an entire workforce of millennial employees, Google’s Laszlo Bock sized it up this way: “Over the coming decades, the most gifted, hardest working people on the planet will gravitate to places where they can do meaningful work and help shape the destiny of organizations.” (2) They Don’t Want A Boss; They Want A Coach There once was a day in business when we believed people didn’t want to work and needed 22
constant coercing to remain productive. But millennials have a deep desire to make their lives meaningful through work. As a result, they tend to set very high goals for themselves, take ownership for their successes, and want to be held personally accountable. Tied to this disposition, Gen-Y workers are repelled by traditional bosses who bark orders or manage people in uniform ways. “This a generation that comes into the workforce expecting to not just have a good boss,” Harter told me, “but a boss who’s a good coach, too. Coaches drive performance by being approachable human beings. They get to know people as a whole person. They discover what they’re best at, mentor their growth, and provide ongoing feedback. They’re advocates.” As evidence of why US engagement remains strikingly low, Gallup believes very few people today have this kind of boss. Noting that the mindset of a “coach” tends to be more supportive, caring and nurturing to people than what we’ve traditionally expected of workplace managers, I asked Harter if businesses would be wise to formally rename the role. “If the expectation is that managers should act like coaches,” he told me, “then why not just call it that?” (3) They Want Much More Frequent Feedback Gallup’s research shows most organizations today give employees an annual performance review - a discussion where managers devote more attention to correcting someone’s weaknesses rather than focusing on their strengths. And in the experience of millennials, that’s like getting a ceo-mag.com / Summer 2016
bad report card in June without any other update all year. “This is a generation that needs and expects much more frequent communication than that,” Harter told me, knowledge that may make some leaders bristle. “But if the ultimate job of a manager is to improve performance in the organization, then giving people more consistent feedback just means they’re doing their job.” And what is it millennials need to hear from their bosses? Beyond recognition, they’re seeking clarity. Are they working on the right things, succeeding and making a difference? Gallup believes twice-a-year formal reviews have become the minimum for businesses today, and that routine “check-ins” are a highly effective way of sustaining trust and connection. While it’s clear millennials don’t really need a lot of trophies, they nevertheless do need a lot of love. (4) Focus On Their Strengths Gallup did a study recently and asked people to re-live their previous work day. What they discovered is that workers who had the highest engagement were able to use their strengths four times more often than things they did less well. “In many cases, the jobs we give people don’t match up to how they’re advertised,” Harter told me, “and this is an easy and direct way of losing their commitment right out of the gate. While we cannot ignore a person’s weaknesses, the wisest leaders are ones who discover what makes each person different and then tailors their job to their strengths.” ceo-mag.com / Summer 2016
(5) Growth And Development Is One The Greatest Drivers Of Millennial Engagement It was Yeats who said, “We are happy when we are growing,” and science bears him out. When people feel they’re in a constant state of maximizing their own human potential, they tend to be extremely engaged in their jobs. As the best educated generation of all time, millennials are also highly attuned to their need for growth and want to envision their futures. They want to know where they stand, where they’re going and how they’ll be supported in getting there. “A manager’s job going forward has to be focused on development as much as it is on performance,” Harter insists. “Development leads to performance and giving people more feedback leads to tighter relationships. Conclusion: Some organizations seem to have it in their minds that millennial workers are mercenaries, always looking for a new and better deal. But Gallup’s research shows what they’re really looking for is a compelling reason to stay. When Gen-X workers were at the same stage of life as where most Gen-Y employees are today, they actually job-hopped more frequently. But there came a day when they made a long-term commitment to one organization - a decision many millennials themselves are getting ready to make. And where they’ll land will likely be in response to how you choose to lead.
BIOGRAPHY Mark C. Crowley is the author of Lead From The Heart: Transformational Leadership For The 21st Century. His work has been published by Reuters, LinkedIn and the Huffington Post; he’salso a frequent contributor to Fast Company Magazine. Connect with Mark through his website: www.markccrowley. com, Facebook: www.Facebook.com/ leadfromtheheart or Twitter: @markccrowley. 23
A DEGREE AHEAD: WHAT CAN EDUCATION LEARN FROM AN MBA?
n a bid to increa se world standard s of education, a greater number of countries are choosing to mirror the Finnish education system, where teachers must hold a minimum of a Master’s degree to teach in their respective country. As more educators take on the challenge of completing this higher level of education, the Australian Institute of Business (AIB) investigates the specific advantages that a Master of Business Administration (MBA) has to offer this industry.
Education’s Demand For Master’s Degrees The demand for master’s level employees in the education sector is on the rise, and as a result the annual number of master’s graduates has also increased. Today, more than 50 per cent of America’s public school teachers and 38 per cent of private school teachers hold a master’s degree, an increase of 45 per cent since 2000 (National Centre for Education Statistics 2012). Achieving a master’s level degree as a teacher has been proven to increase their students’ performance, job security, and salary (Bureau of Labor Statistics, 2012). Students of teachers with a master’s degree perform consistently better than those whose teachers hold only a bachelor’s degree or less (NAEP 2014), and completing the degree heralds an average 10 per cent bump in salary and a reduced unemployment risk for teachers, compared to those with a bachelor’s degree (Bureau of Labor Statistics, 2012).
ceo-mag.com / Summer 2016
What Can Education Learn From An MBA? While the education space is becoming more open to skills and experience outside of the traditional education world, studying a MBA as a teacher may be the best fit for those who want to take on leadership positions. From a generalist perspective, the degree may be most attractive to those working in schools, colleges, fund-raising groups, non-profit education funds, and government institutions who want to find better ways to allocate the limited financial and staffing resources available to them. As education is a business, its facilities need just as much management of resources, personnel and money as any other corporation. Thus, the experience and knowledge achieved throughout the MBA while working in education can improve a workerâ€™s ability to streamline the way educational institutions are run, saving money and time that can be used elsewhere. Currently, the education industry holds the fourth highest share of the MBA job market, according to the 2015/16 QS TopMBA.com Jobs & Salary Trends Report (QS 2016), and this number is expected to grow by another 13 per cent in the 2015/16 financial year.
ceo-mag.com / Summer 2016
An MBA can offer broader management skills and help teachers to gain that point of difference that will pay off later in their career.
BIOGRAPHY AUSTRALIAN INSTITUTE OF BUSINESS is a 30-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.
How Can An MBA Benefit Education Leaders? For those holding or aspiring to hold leadership positions in both public and private education providers, an MBA may be useful in giving these leaders the proven ability to develop a business plan, create an effective marketing strategy, and manage projects, finances, and employees.
Simon Herd, Principal of Medowie Christian School, completed his AIB 12 Month MBA in 2014 as Deputy Principal in preparation for the principal’s role. Today he is managing the school’s multimillion dollar budget with confidence and viable knowledge about the parameters of the organisation. “Specialising my MBA in Human Resource Management allowed me to gain that expertise in dealing with staff and ensuring we have performance systems in place to help teachers to be the best they can be,” he said. “Within a school setting, our staff wages are around 75 per cent of our budget, so we need to make a significant investment into this area to ensure we are getting the best out of our teachers, and creating the best learning environment for the students as well.”
Johannes Solymosi, Principal of Victory College and current AIB 12 Month MBA student, said the MBA programme is particularly relevant to his role as principal, with subjects including leadership, strategic planning, operations, human resource management, finance management, corporate governance and marketing.
“For those who aspire to the principal’s role, typically you would progress through the ranks as a teacher and then into middle management. As a teacher stepping into this organisational leadership role, I decided to complete the MBA to give me a solid theoretical basis behind my role as principal,” he said. “I did consider the more traditional educational leadership degree, but wanted to branch out of the educational view of running a school, and learn from a more generalist, business-oriented model.” Both principals said the project management subject from the MBA helped them to prepare, run and negotiate on key building and curriculum projects within the school, while the corporate governance subject gave them an understanding of best-practice governance for their roles on the school board. “I’ve used the operations management subject to streamline the enrolment process and provide a better service to prospective parents from their first enquiry to enrolment,” Mr Solymosi said. “Using the human resource management subject, I’ve also implemented a new performance and development project framework, and our staff are happy that the school is now using a best practices framework that suits our environment, values our staff members, and is sustainable for the future.” Should teachers complete an MBA? Traditionally teachers must gain years of classroom experience (and, depending on your country, a master’s degree) before making the rise to leadership positions such as dean or vice-chancellor, deputy principal and principal. For many, this entails completing a leadership programme; however an MBA can offer broader management skills and help teachers to gain that point of difference that will pay off later in their career. The degree is also useful for those who are currently working in business and would like to switch careers to teach business or legal studies at a senior school level. “One of my staff members who teaches business studies has an MBA and business industry experience, which has been really helpful in getting the best out of the students, as well as providing them with current best practice in industry,” Mr Herd said. M r Soly mosi sa id he bel ieved a n M BA programme would be most relevant for principals a nd school busi ness ma nagers, as well as functional leaders, marketing directors, human resources managers, and board members. “I would probably recommend teachers and middle-level managers gain their educational postgraduate qualif ications f irst, and then complete an MBA to progress into a more generalist management role,” he said. ceo-mag.com / Summer 2016
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THE DOWNSIDE OF MAKING A BACKUP PLAN AND WHAT TO DO ABOUT IT
“You might want to delay making a backup plan until after you have done everything you can to achieve your primary goal.” JIHAE SHIN
ceo-mag.com / Summer 2016
Always take backup
e hear it all the time on cop shows; in everyday life, it translates to something like, “It pays to have a Plan B” or allusions to the Robert Burns poem about “the best laid plans” often going awry. But new Wharton research shows that there is an important downside to making a backup plan - merely thinking through a backup plan may actually cause people to exert less effort toward their primary goal, and consequently be less likely to achieve that goal they were striving for. Jihae Shin, a former Wharton PhD student who is now a professor at the University of Wisconsin, and Katherine Milkman, a Wharton professor of operations, information and decisions, detail their findings in the paper, “How Backup Plans Can Harm Goal Pursuit: The Unexpected Downside of Being Prepared for Failure,” which was published in the journal, Organizational Behavior and Human Decision Processes. The paper was inspired by a conversation that Shin and Milkman had when Shin was working to get an academic faculty job while completing the PhD program at Wharton. While some of her peers were thinking about backup options in case they didn’t find a job in academia, Shin found herself not wanting to because she worried that, “if I make a backup plan, it could make me work less hard to achieve my goal, and ultimately lower my chances of success.” Shin and Milkman agreed that they should test Shin’s idea. In a series of experiments, they found that thinking through backup plans did quash people’s motivation to achieve their primary goal. For example, after all participants in one experiment were told that performing well on a task would earn them a free snack, or the privilege of leaving the study early, some were prompted to think about “another way they could have an extra 10 minutes or another way they could get a free snack,” Milkman notes. “When people were prompted to think about another way to achieve the same high-level outcome in case they failed in their primary goal, they worked less hard and did less well.” The researchers add that the effect wasn’t about putting a concrete backup plan in place. “Just thinking about it - you haven’t invented a backup plan, you haven’t created a safety net, you’ve just contemplated the existence of one” - causes people to lose focus on their goal, Milkman says.
ceo-mag.com / Summer 2016
Outsourcing Plan B
ut can you really get through life without contemplating backup plans? Milkman says no - and nor should you. “There are huge benefits to making a backup plan,” Milkman points out. “If you don’t have one in life, sometimes it can be really disastrous.” What you can do, the researchers say, is to become more strategic about when and how to make a backup plan. “You might want to delay making a backup plan until after you have done everything you can to achieve your primary goal,” Shin says. Or you can outsource it. Milkman notes that while Shin was focusing on her goal of landing a faculty job in academia, Milkman and Shin’s other mentors were thinking about what she could do if it didn’t work out. “In a work environment, if an employee is given a task, you can tell him or her not to think about failure; just put all your eggs in one basket and know that it’s not your job to think about a backup plan,” Milkman says. “That’s the boss’s job, and the boss doesn’t have to tell the employee that he or she is worrying about it.” Alternately, Shin adds, companies can give one group of employees the job of pursuing a goal, and another group the responsibility of coming up with backup plans. The researchers note that the effect is only relevant to goals that are dependent on effort, rather than luck. In addition, while it’s often impossible for the most cautious among us not to think about what happens if our goals don’t fall into place, Shin says people can avoid making specific, detailed backup plans. “The more specific and detailed your backup plans, the more potent their negative effects will likely be,” Shin notes. “My dad told me when I was coming to the US to do a PhD that, ‘Nothing valuable in life is achieved easily,’” adds Shin, “I believe that persistence and grit toward a goal, which can be affected by making a backup plan, could make a difference in deciding who succeeds and who doesn’t in that goal.” Shin says one next direction for the research would be to examine whether the attractiveness of the backup plan impacts people’s level of motivation to achieve their primary goal - whether making an unattractive backup plan would hurt motivation less than making an attractive backup plan. That said, after their conversation about her job prospects, Shin suspected that Milkman might have been thinking about a backup plan for her. “For this I am thoroughly grateful,” Shin says.
ACKNOWLEDGEMENT Republished with permission from Knowledge@Wharton (http://knowledge. wharton.upenn. edu), the online research and business analysis journal of the Wharton School of the University of Pennsylvania.
“When people thought about another way to achieve the same high-level outcome, they worked less hard and did less well.” KATHERINE MILKMAN
THE GROWTH OF WOMEN IN MBA EDUCATION Alexandra Skinner speaks to EU Business School Q. How important a role do business schools play in increasing the profile of women in business and executive education? Business schools have a huge role to play, starting with the school itself. At EU Business School, we have women in several leading roles - Ann Craen is head of finance for the Group, Veronica Cancio De Grandy is the managing director of the EU Munich campus, and the academic deans on four of our five campuses are women. By practicing what we preach, and having women in high roles within executive and business education, EU Business School becomes a point of differentiation from other business schools. Weâ€™re globally recognised for our diverse campuses; over 50 per cent of the students who are currently enrolled in our MBA programme are women, and Capital Magazine ranked us sixth globally for gender equality in MBA progra m mes worldwide. We pride ourselves on providing an engaging environment for women in terms of support, mentorship and opportunities. Our alumni are perfect examples of what an excellent business education can do for anyoneâ€™s career. An EU Business School education is for anyone looking to expand their horizons and realise achievements beyond their expectations. 30
In March 2013, EU was recognised for its gender blindness and placed eighth in the QS Women at Global 200 Business Schools list. Q. What efforts do you have in place to: 1. Increase the number of women in senior management? We lead by example - women hold over 75 per cent of senior management positions at EU. At EU Business School, we know that this kind of gender parity generates va lue for compa n ies by broadening market vision, enhancing boa rd dy na m ics, inspiring fema le shareholders and improving corporate reputation. We h ave a l re ady t a l ked a bout women leaders on our staff, but we also have some strong female business leaders on our faculty. For example, Communications Lecturer Isabelle Balli was the worldwide director at media company Agfa Gevaert for over ten years. One of the unique characteristics of our staff and faculty is that they are business leaders in their own right, working in their field and willing and able to mentor our students. 2. Gain support through alumni and business networks? The EU Alumni Association is a tool
for EU Business School graduates to discover new opportunities, explore their career paths and cultivate connections. This international network brings together like-minded professionals who share similar business values and visions that stem from the same root: an exceptional global business education. We have always had a high percentage of female students which means that there is also a wealth of experienced and established alumni who are ready to help our prospective businesswomen. Our alumni regularly give guest lectures to our current students, giving them both advice and a roadmap of career possibilities. Our 25,000-plus alumni network a l ready spa n s t he g lobe, w it h its members holding top positions in multinational corporations, growing SMEs and innovative start-ups. The international reach of the association brings alumni together by facilitating communication, promoting information exchange and encouraging international business relations. 3. Increase the number of women business owners and entrepreneurs? EU Business School is no stranger to supporting budding entrepreneurs. Rochelle Peetoom, EU alumna and ceo-mag.com / Summer 2016
BBA va ledictoria n, developed her business idea at EU Business School Barcelona. Rochelle took full advantage of the experienced faculty and in-class projects to solidify her business idea for her company, Bon & Petit. Bon & Petit found a gap in the market and launched a company that delivers ingredients to those who don’t have time to go to the supermarket and buy them. By showcasing and encouraging the achievements of our alumni alongside a representative population of business leaders and executives, it’s easy to see why our female enrollment rate is above 50 per cent. With 99 per cent of our students coming from overseas, numerous nationalities are represented across our campuses offering students a plethora of international experience and cooperation. In such a diverse environment, students are given many opportunities to challenge their pointof-view. 4. Increase the number of women enrolling in executive business education? We offer a diverse range of study paths that allow flexibility for those who need it. The Online MBA has no restrictions on time or location. This means that our aspiring executives can tailor their study schedule around their pre-existing family and career commitments. Likewise, this opens up a whole new virtual world where students can meet and interact with each other, and create a network composed of other like-minded professionals that share experiences and support each other. This flexibility allows for a level of diversity and international experience that would not be possible i n the traditional classroom setting. Alongside this, our on-campus week offers the ideal opportunity for participants to attend guest lectures; sit exams; visit international corporations; and bond with fellow colleagues and faculty. In his 2014 blog, EU Lecturer Marc Guerrero h igh lighted th ree major challenges that female business owners and executives often have to overcome: gender discrimination and stereotyping; career-family pressures; and lack of equal opportunities. Q. (a) How does EU prepare its female graduates to overcome these obstacles? Our faculty and staff are well aware of the issues that women may face in the workplace. Given the low studentto-faculty ratio we maintain across our network, our students are confident that ceo-mag.com / Summer 2016
“We pride ourselves on providing an engaging environment for women in terms of support, mentorship and opportunitie
they can discuss their work and progress with faculty members at a moment’s notice. With smaller, more intimate class sizes, faculty members are better able to direct their attention and time towards their students. At E U, we showc a se fem a le achievement, whether it is through our magazine, ON, which dedicated an entire issue to women in business, or sending our faculty to events, such TEDx Munich, which focus on women. By acknowledging and openly discussing the issues around gender discrimination, we forge a clearer path to disparaging it. Our Career Services Department (C S D) f o c u s e s o n i n d i v i d u a l development a nd employ ment needs. Our female students receive personalised assistance in formulating, exploring a nd implementing their career options. The CSD assists with choosing career paths, preparing CVs, improving interview skills, evaluating the job market, developing a network of contacts, conducting job searches and negotiating offers of employment. In addition, EU organises career fairs, which serve as opportunities for students and companies to meet and exchange ideas, details and employment offers. Q. (b) How do you feel that businesses can better support women in the workplace? B y bu i ld i ng st rate g ie s to help businesswomen and female entrepreneurs succeed that include creating a strong network, certifying or marketing businesses as womanowned, and helping them find ways to balance work and family. These are some of the important initiatives undertaken at EU. As EU Lecturer Dr. Guerrero says: “Global competition is making companies realise that their success depends on the work of a broad range of talented people of various nationalities, ages, races and genders.” With our MBA students f inding
employ ment within si x months of graduating, prospective students can be confident in the knowledge that their time spent studying with EU can propel them to success in their future careers. Q. How would you respond to those who claim that affirmative action goals mean that MBA application is easier for women? All initiatives with the intent of promoting equality are positive. In Europe, there is no ‘affirmative action’ initiative. EU holds all applicants to the same high standards, regardless of gender, race, or income level. Women h ave excel led i n a l l of ou r M BA programmes, some even earning the best thesis or best MBA student awards. But it’s important to mention that these awards are based on their work and not on gender. Veronica Cancio De Grandy, ma naging director of the school’s Munich campus, comments that “[We] do not take gender into account, and this way, we practice true equality in every sense.” For me it was the f lexibility of the programme that attracted me to EU. I am working for the United Nations, and so I travel quite a bit. This programme a llowed m e to rea lly e n h a n ce my knowledge, but was also really flexible so that I could achieve my goals. It is certainly a challenge, but the teachers at EU Business School are used to this, and take this into consideration in the way that they prepare the class, in how they provide the information, and in the way they accompany you through the process. They are very reachable and accessible, and this facilitates the overall process. I really enjoyed the programme’s study format. The courses are delivered over weekends in very intense classes, and this allows you to take a bird’s-eye-view and to deepen your knowledge. Taking a more general perspective helps you to see where you need to focus and to learn more, and so the EMBA becomes very interactive and customised to your needs. Ve r o n i q u e R o n d e a u , P r o j e c t Management Adviser for Developing Count r ies, United Nat ion s. EM BA International Business 2015, EU Business School. BIOGRAPHY EU Business School is a triple-accredited, multi-campus, international business school. EU offers various programmes at the bachelor’s (BBA/BA/BS), master’s (MBA/ MSc) and doctoral (DBA) levels, all taught in English. 31
THE MOST INFLUENTIAL CEOS ON TWITTER Digital leaders who get the most attention for themselves and their brands on social media are those who share their personal causes, express their hopes and ambitions and engage with their followers. DAVID DUBOIS
“New research shows that the most influential CEOs today are social leaders.”
raditionally, leaders’ ability to influence has been based on the extent to which they harness their power and strength. Authority and the ability to guide others through hardship have historically been central to the growth of leaders from military generals to CEOs. But in today’s digital age a new kind of “democratic leadership” has emerged, a process by which engagement is much more bi-directional: from top to bottom and bottom to top. The advent of social media has driven this change in social dynamics and new research shows that the most influential CEOs today are social leaders, open to listening, engaging in dialogue with stakeholders and responsive to their followers. People increasingly want to see their leaders on social media, which is where 80 per cent of chief executives from the world’s biggest companies now do much of their bidding. CEO “sociability” is critical to building trust and loyalty. Research shows that 82 per cent of consumers are more likely to trust a company whose CEO engages on social media. Meanwhile, 78 per cent of professionals prefer working for a company whose leadership is active on social channels. As reflected by the Twitter Influence Index (TII), not being on social media is by now far more detrimental than hiding away in the corner office. Engaging and telling the company’s story is becoming essential for CEOs, especially as the millennial generation demands and expects its leaders to be digitally savvy. As John Legere, CEO of T-Mobile (ranked #12 on the TII) said last year; “Who’s on Twitter? My customers, my employees, my competitor’s customers. And I hear every minute of every day how we’re doing and what we need to do differently.”
The secrets of the most influential The index, developed by the “Young Promising Leaders of Twitter” (YPL), Jecolia Tongzh, Edric Subur, Theodoric Phay and Amanda Ng, under my mentorship and with the supervision of Frederique Covington, Twitter International Marketing Director, measures how influential the world’s top executives are on Twitter, based on engagement data (the quality of their tweets) and volume (the quantity of their tweets) between January and August 2015. The TII is composed of the most successful 100 CEOs on these measurements, the top 20 of which are below (table). Looking at the top five, it’s clear from the leader, Tim Cook, that less is more. Cook tweeted only 50 times during the study period, but he garnered almost 2,000 retweets per tweet (high quality engagement). Cook’s tweets are short and typically personal. He tweets about customers, thanks his staff for big launches and even trumpets causes (LGBT rights). The case of Bill Gates, who has around 15 times the followers of Cook but only gets half the retweets, tells us two things: the secret is in the quality not the quantity of your tweets, and the same applies to followers. Gates is high on the index because of the popularity of his humanitarian work and his hopeful updates on causes such as disease cures or the progress of women. Elon Musk epitomises the hip and happening. Through his short teasers, such as “it’s time”, he speaks the language of his followers and inspires them with his ambition. His tweets embody his values, attitude and passion for “innovations now”. Richard Branson stands out for his humility. He regularly shares tips and even stories of personal failure from his younger days, sharing lessons and ceo-mag.com / Summer 2016
The #TwitterInfluence Index Top 20
1 Tim Cook (Apple)
2 Bill Gates (Bill & Melinda Gates Foundation)
3 Elon Musk (Tesla Motors)
4 Donald Trump
5 Richard Branson (Virgin)
6 Rupert Murdoch (21st Century Fox)
7 Aaron Levie (Box)
8 Ash Ashutosh (Actifio)
9 Satya Nadella (Microsoft)
10 Brian Chesky (Airbnb)
11 Eric Hirshberg (Activision)
12 John Legere (T-Mobile)
13 Jeff Immelt (GE)
14 Kaifu Lee (Innovation Works)
15 Yuanqing Yang (Lenovo)
16 Tony Fernandes (AirAsia)
17 Assaad Razzouk (Sindicatum)
18 Anand Mahindra (Mahindra)
19 Marissa Mayer (Yahoo)
20 Kevin Rose (Google Ventures)
experiences for the benefit of all. The personal nature of the top CEOs matters. A comparison of CEO engagement against that of their companies, showed that a CEO’s personal handle (their Twitter name) has significantly more influence than their corporate brand. Bill Gates, for example, averages 2,365 engagements per tweet, while the @GatesFoundation Twitter handle has a rate of 119. Reflection of the times Of the 100 CEOs ranked on the index, 38 per cent came from Forbes 2000 companies and 75 per cent from the billion-dollar start-up companies list. Given the popularity of disruptive start-ups and the propensity of millennials to follow their founders, big company CEOs should join them. The biggest industry represented in the top 100 is technology, which comprises 41 per cent of the TII. But financial services are catching up, despite the industry’s precarious post-crisis reputation, with two financial services CEOs in the top 25. Sadly, the lack of female representation on the TII reflects the remaining gender gap in business. Only seven female CEOs made the TII rankings: ceo-mag.com / Summer 2016
Marissa Mayer, Mary Barra, Elizabeth Holmes, Randi Zuckerberg, Jacqueline Gold, Charlene Li and Michelle Rhee. Women also use social media less than men for business, while men tend to use social media to gather the information they need to build their influence. CEOs of American companies also dominate, representing 73 per cent of the TII. Asia Pacific represents the second biggest group at 15 percent, including five Asian CEOs listed within the top 20, among them Tony Fernandes of AirAsia and Anand Mahindra of the Mahindra Group. This suggests that, while Asian CEOs are still reluctant to share their personal lives on social media, big opportunities await them if they do. The activity of the most influential leaders on social media increasingly reflects emerging leadership practices which will likely define the future of management. Not only does it provide compelling insights on how leaders are followed and admired today; it also paves the way for what the organisational structure of 21st century might be: more local and more distributed with a leader in sync with the company and customer ecosystems.
BIOGRAPHY David Dubois is an Assistant Professor of Marketing at INSEAD and a Programme Director of Leading Digital Marketing Strategy, one of the school’s executive development programmes. ACKNOWLEDGEMENT Republished with permission from INSEAD Knowledge, the expert opinion and management insights portal of INSEAD. To request a copy of the report, please contact Mr. Dickson Seow, Head of Communications at Twitter Asia Pacific at firstname.lastname@example.org. Follow INSEAD Knowledge on Twitter and Facebook 33
THE SPECIALIZED MBA AT THE UNIVERSITY OF THE SCIENCES RO BE RT W. M U E LLE R WHY BE SPECIALIZED? Pharmaceutical and healthcare businesses have three basic managerial requirements: n Broad business skills n Specialized knowledge about the industry n The ability to apply this knowledge with informed creativity While this may sound like too much to ask, The University of the Sciences’ (USciences) delivers this kind of education every year. The result is that these graduates hit the ground running and then accelerate. All business schools provide the basics: f i na nce/accou nti ng, ma rketi ng /sa les a nd general management,but they do not tailor the program to a large and robust business sector like the global pharmaceutical and healthcare sector’s $7.2 trillion (10.6 per cent of global GDP). Specialization is the key to this MBA program. HOW DOES USCIENCES DELIVER SPECIALIZATION?
“Knowledge in and of its self is not enough. Students need to learn how to apply their new learning to business problems effectively.”
Hire the Most Relevant Faculty Ninety per cent of faculty members are successful industry veterans. In their classes they draw from and utilize their real-world experience. They provide an active pipeline to a network of industry executives that students would not find at another MBA program. And all have the requisite academic bona fides.
Classes Are Designed for the Real World USciences’ MBA program provides courses in many formats, so that any student will find a convenient way to learn. They offer evening classes and online classes, and students may move from one format to the other. Typically the class size ranges from 8-20 students. This means that the style of learning is conversational and Socratic, rather than lecture-based. Additionally these online classes are not MOOCs (Massive Open Online Classes), they are SPOCs (Small Private Online Classes); which means that current technology is used to provide real-time virtual class rooms for weekly classes where students and professors see and interact with one another. Business Knowledge Needs To Be Applied Knowledge in and of its self is not enough. Students need to learn how to apply their new learning to business problems effectively. After these MBA students have acquired the core business skills, they learn to apply them in an ascending pyramid of increasingly difficult applied learning courses. In this way, students move incrementally to be independent, creative, critical thinkers.
Mayes PHB MBA Applied Learning Model SELF DIRECTED RESEARCH APPLICATION FULLY INTEGRATED SIMULATED APPLICATION
MSM 2: Marketing MSM 3: Product Development and Launch MSM 4: Finance
Accounting and Finance Marketing and Sales General Management Specialized Pharma Courses ceo-mag.com / Summer 2016
he first step in this applied learning model is the MSMs (Multidiscipline Strategic Management courses) that guide the student through the application of a specific functional skill (e.g. accounting and finance). These applications can be simulated or realworld experiences. Some of the most rewarding of these MSMs are in the financial courses. These are designed as team consulting projects in which sophisticated financial models are used to posit answers to difficult business decisions. Some recent projects have included: n Analyzing the potential return on several therapeutic indications in different patient scenarios for a start-up pharmaceutical company. n Determining the potential return for a hospital if an additional operating room was built. n Building a cost benefit model for a creating a Post-traumatic Stress Disorder (PTSD) treatment program for women returning from theatres of war. n Helping a ver y la rge pha rmaceutica l company decide whether to divest a profitable non-core business. While there are many more of examples of MSM projects, they all give the student the opportunity to complete a functionally focused application of their learning.
FULLY INTEGRATED SIMULATED APPLICATION
he MSMs apply business learning to a specific functional problem (finance, marketing or pharmaceutical product development and launch). The CapSim GlobalDNA® (an integrated simulated international business challenge) requires student teams to use all their functional skills to launch a product in a simulated market. The student teams compete against each other, and their final results are compared to national results. Students learn how decisions made in one functional area effect the results in other areas and how these choices are compounded over time. USciences’ MBA students enjoy the challenge, and the faculty learns when the foundation courses are preparing students well, and where they might need greater focus.
“Students complete the program proud of what they have learned, applied and accomplished and are ready to be significant contributors as soon as they begin work.”
he pinnacle of this applied learning pyramid is a self-directed research paper. The capstone project builds on the program’s core competencies and applied learning initiatives. This final step removes the structure of software simulations and faculty design, and empowers the student to explore on his or her own. This is all done within the discipline of a hypothesis driven study. These papers are built around disputed pharmaceutical/healthcare business hypotheses using peer-reviewed literature and published data to answer an important and debated question. The final study is presented to the faculty. Students complete the program proud of what they have learned, applied and accomplished and ready to be significant contributors as soon as they begin work. They are skilled, informed and ready to be critically creative.
ceo-mag.com / Summer 2016
BIOGRAPHY Robert W. Mueller, EdD, is Director of the MBA Program and Associate Professor of Pharmaceutical and Healthcare Business at Mayes College of Healthcare Business and Policy at University of the Sciences, Philadelphia, PA, USA. 35
NO ORDINARY EXECUTIVE
Alexandra Skinner talks to Kent State University’s Laurie Walker
n response to the scheduling demands of busy professionals, Kent State University’s (KSU) Executive MBA has undergone some format changes that will commence in fall 2016.
“After graduation, we have a dedicated Career Services Office that provides support as alumni encounter opportunities and challenges while advancing their careers.”
Q (a). Please summarise the key changes? The programme will now meet with a once monthly on-site format, consisting of on-site class meetings on a Saturday, all day, and Sunday for a half day. During the intervening weeks, online learning takes place in both synchronous and asynchronous formats. I n add it ion , t he c u r r ic u lu m h a s b e en streamlined and redesigned to further integrate content relevance between courses. During the teaching of core courses in leadership, analysis, finance and strategy, interconnections with other subject areas are discussed. This allows students to apply greater depth of cross functional learning to their final live capstone strategy case. Q (b). How important is it for professionals who undertake an EMBA to be supported by their business school? The ‘all inclusive’ support from the College of Business provides busy professionals with additional time to focus their attention on learning. This is extremely important given that
our students have full time jobs, as it gives them valuable time to balance their school, work and personal lives. Q (c). What other efforts do you have in place to support this demanding demographic, outside of the programme format? We have recently introduced Executive MBA Concierge Services - students have a coordinator that handles registering for all their courses, providing on-site meals and VIP parking. In addition, we coordinate all details for the international experiences business trip and arrange for all graduation. There are also two non-credit Professional Development workshops within the programme, with added emphasis on career advancement. In addition to this, individual coaching for EMBA students enables them to advance within their unique career goals. Post-graduation, we have a dedicated Career Services Office that provides support as alumni encounter opportunities and challenges while advancing their careers. Q. Your Executive MBA programme is supplemented with online delivery elements. How do you ensure that executives remain engaged and actively participate to the extent that they would in an onsite lecture? ceo-mag.com / Summer 2016
at their individual companies. The outcomes are subsequently discussed in a synchronous online class. The emphasis continues in subsequent courses and culminates with a live case project related to strategy at the end of their programme . Q (b). How much support do you receive from the local, regional and national business community, and are KSU students able to take advantage of these relationships? We connect to the business community on a variety of levels ranging from local to international. We have established wonderful connections with businesses through community relationships, alumni, current students and our Career Services Office. By way of example, in March of this year, we connected with alumni and current students to arrange visits to several major companies in India, including Eaton, KPMG, Nestle and Suzlon. Also on this business experience, students successfully completed a project with Allstate in Pune, India.
“The ‘all inclusive’ support from the College of Business provides busy professionals with additional time to focus their attention on learning.”
Feedback from industry plays a key role in maintaining a programme’s relevance when it comes to ‘real-world’ business needs. Q (a). What would you say are the three most important skills that the market requires from business leaders? In my opinion, these would be leadership, strategic decision making, and clear communication.
As synchronous online learning functionality has improved, we have now added several synchronous sessions during intervening off site weeks in order to ensure an engaged learning experience. As part of preparation for the new programme, we designed and conducted trial synchronous online experiences in current cohorts. Over the past two years, one synchronous class session was added to each of the two summer courses. Both qualitative and quantitative courses were included, which provided information on the synchronous activities that best contributed to engagement for each course type. Student and professor feedback was solicited in order to further improve the engagement experience. Learning and development at a postgraduate level extend beyond the walls of the classroom, making experiential learning an essential part of the development of such endeavours. Q (a). How hands-on is the learning experience at KSU? T here has a lways been a n emphasis on encouraging depth of learning through hands-on applications of business concepts in students’ workplaces and through live case projects. This begins at the start of the programme in Executive Communications, as students are challenged to utilize their newly learned communication skills ceo-mag.com / Summer 2016
Q (b). How are you equipping your Executive MBA students to meet these demands? Preparation begins with early assessments on soft skills and quantitative skills that are used as a basis from which to advance learning. A course sequence designed to build on this base includes both qualitative and quantitative skill development. Throughout the program oral communication improves through presentations and team assignments, while concise written com mu n ication i mproves t h roug h papers assigned which require executive summaries. Analytics are taught from a strategic viewpoint in order to encourage more informed decisions on issues that are relevant to the business. Q. Although executives on your programme will have many years of experience, they are by no means the finished product. How much emphasis do you place on professional development and the honing of ‘soft-skills’? We prioritize these areas during the program a nd a lso highlight the need for continued development on a lifelong basis. During the program the coursework on team building, leadersh ip a nd executive com mu n ication emphasizes professional development and soft skills. This is supplemented by material in the non-credit Professional Development workshops. After graduation, alumni receive continued support through EMBA Advisory Board events and free workshops conducted by our Career Services Office.
BIOGRAPHY Laurie Walker earned a Bachelor of Science degree in Civil Engineering from the University of Michigan and a Master’s in Business Administration degree from Harvard Business School. She worked in engineering and/or marketing roles with British Petroleum, General Motors, and Nestle. In 2001, she launched a consulting practice that specialized in business plan development and marketing research. Her consulting involvement with the creation of the EMBA for Healthcare Professionals programme led to an avid interest in education and lifelong learning. As Director of EMBA Programmes, she focuses on facilitating a learning environment that prepares business professionals for advancement in leadership positions. 37
ceo-mag.com / Summer 2016
IT’S HARD TO SHAKE A BAD IMPRESSION
t’s easier to get a reputation as a gossip than it is to get rid of it. That’s one lesson to be drawn from research by Chicago Harris’s Nadav Klein and Chicago Booth’s Ed O’Brien, who find asymmetry in how people evaluate others’ moral character. In a series of studies, the researchers asked participants to read about the actions of fictional people who behaved in either a moral or immoral way. For example, one fictional person, Barbara, worked in an office and sometimes held the door for or complimented her colleagues. Other times she cut in line or spread gossip. Participants then imagined noticing a change in Barbara’s behavior, for the better or worse. The study participants tended to judge immoral behaviors harshly. When Barbara acted badly, it only took a few such instances for the participants to judge her as having changed for the worse. And they tended to judge moral actors with some skepticism. When Barbara acted morally, participants wanted to see significantly more examples of her good behavior before they judged her kindly. (Good or bad, the behaviors in the study were roughly equivalent in moral nature.) T he re s u lt s s u g ge s t t h at p e ople h ave different moral tipping points for good and bad ceo-mag.com / Summer 2016
behaviour — we have a lower threshold when it comes to judging moral decline versus moral improvement. Unfortunately for Barbara, she doesn’t get extra credit when she stops behaving meanly. Participants asked in a follow-up study to reward or punish fictional people for ceasing their behaviors didn’t exhibit the same asymmetry, so they rewarded fictional people for their improved behavior only as much as they punished them for starting to act badly. The implications of the study go far beyond impressions of office colleagues, illuminating why people, once they’ve formed a negative impression of someone, can refuse to give them a second chance. The findings may be of interest to judges, the researchers suggest. “At what point does a person who engages in a series of small offenses deserve to be tried for a serious crime? When does a person who exhibits good behavior while serving time in jail earn a shorter sentence?” the researchers ask. “Our findings suggest potential inequity in these common and costly decisions.” Nadav Klein and Ed O’Brien, “The Tipping Point of Moral Change: When Do Good and Bad Acts Make Good and Bad Actors?” Social Cognition, forthcoming.
ACKNOWLEDGEMENT Courtesy of Chicago Booth’s Capital Ideas. 39
Higher Ed Insights
WILL TUITION CONTINUE TO RISE? A LOOK AT HOW BUSINESS SCHOOLS EARN THEIR INCOME OFFERS A CLUE
he range of tuition charges at business schools depends directly on their business model and sources of income. The nature of income determines also the availability of financial aid and scholarship schemes. My purpose here is to provide a comparative perspective on how business schools earn their revenues, and propose a typology to better understand how the nature of income determines propensity to increase or lower tuition. The business models for business schools vary across regions, and results from cultural, societal, economic and political factors. Traditionally, a business schoolâ€™s business model or income source determines its strategy, its mission, and the resources it relies on. There are, basically, three alternative models briefly described below. Actually, these models are not mutually exclusive, and most successful business schools are based on models that allow for a diverse range of income sources:
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TYPE 1. SUBSIDIZED BUSINESS SCHOOLS
ypically to be found at large public universities, subsidized business schools’ income tends to come from regional or federal (national) budgets. Statistical surveys show that around 70 per cent of the funding of subsidized business schools comes from government subsidies. As a result, these business schools are able to offer low, or even free, tuition fees. Typically these are large institutions with a substantial teaching staff made up of highprofile academics with a track record of research. In countries such as China, where education is still largely funded by the state, business schools receive government money based on the number of successful graduates they produce. T he ch a r t below projec t s t he average distribution of income at subsidized business schools.
ooted in the tradition of philanthropy and “giving back,” endowments are a characteristic feature of the US university system. The private universities of the Ivy League, for example, compete w ith each other i n i nternationa l rankings based on their endowments, which are made up of the amount of money they have accumulated through donations from individuals and organizations. Donors often subject their endowments to conditions regarding their use. Business schools with large endowments will generally have other sources of financing, like executive education or publishing, which also make a significant contribution. The graph below illustrates the average amount of income that the top business schools make from interest on endowments above 10 per cent.
40% 35% 20%
TYPE 2. ENDOWMENT -FUNDED BUSINESS SCHOOLS
The survival of the subsidized model depends on the extent to which the state is prepared or able to continue funding higher education. Unfortunately, this is not the case at many US public universities where tuition fees have increased over the past decades to levels comparable sometimes with those of private institutions. Another example is the UK, where in recent years schools are moving away from government funds and searching more revenue autonomy. In Europe, most of the major universities are publicly funded, although many business schools were set up as independent institutions, or are funded by business organizations such as the local Chamber of Commerce in France. Some university analysts wonder if this model will be sustainable over time, as governments increase cuts on public spending across different areas including education. ceo-mag.com / Summer 2016
During the financial crisis of 2008, the value of endowments was hit hard, reducing their incomegenerating capacity. Business school expert John Byrne says: “Stanford saw a decline in endowment income in 2010 to $52 million from $58.8 million a year earlier. The school largely offset the decline by rising tuition and fees from students, which brought in $70.9 million last year, up from $64.5 million in 2009. The result: Student tuition and fees now account for 46% of Stanford’s annual operating budget, up from 42% in 2009”.  However, philanthropy is embedded in the US culture and the practice of donations has continued steady after the financial crisis. What is less clear is whether the model of endowed business schools is exportable to other latitudes outside the US. The fund raising efforts at European universities, for example, have resulted in uneven results to date. At the same time, it is discussable whether the endowed schools are more active in granting scholarships to their students than the subsidized or the tuition based schools.
“Business models for business schools vary across regions, and results from cultural, societal, economic and political factors.”
Higher Ed Insights
TYPE 3. TUITION-BASED BUSINESS SCHOOLS
he defining model for most of Europe’s top business schools is tuition-based, with most funds coming from matriculation fees for their assorted programs, as well as from executive education and fund raising.
50% 30% 10% TUITION FFEES
European business schools have long been envious of the generous endowments bestowed on the big US schools. The plus side of this is that, as a result of being financially needy, European schools have had to become more responsive to the requirements of the market. The unresolved question is which of the above three business models of business schools is the fairest one, in terms of granting access to its students in reasonable and affordable economic conditions, offering bearable loan schemes and enough scholarship opportunities.
BIOGRAPHY Santiago Iniguez Onzoño is the President of IE University and the Dean of IE Business School in Madrid, Spain. 42
NOTES This article is adapted from a passage of Santiago Iniguez’s book “The Learning Curve: How Business Schools Are Reinventing Education” (London: Palsgrave Macmillan, 2011).
 J.A. Byrne, ‘The Financials Behind the Harvard-Stanford’, Poets & Quants, 4/12/2010 To view the original post in linkedIn, please click here. ceo-mag.com / Summer 2016
ceo-mag.com / Summer 2016
5 LEADERSHIP STYLES IN A NUTSHELL Which style of leader do you need to be for high performance?
“People will follow an authoritative leader because they trust the bond between them. It’s one of the reasons that this leadership style, not the coercive style, is promoted within the military – counterintuitive as this may seem.”
PROFESSOR GEORGE KOHLRIESER
aniel Goleman’s work on leadership styles is well-known, and I introduce them in my High Performance Leadership Program for Senior Executives and my onlinebased program, Learning Leadership. Here is a handy explanation of what each style involves and when it can be appropriate to use: COERCIVE LEADERSHIP What is it? Coercive leadership is a command and control style. It relies on forcing people to do what you tell them, whether they want to or not. Does it work? Yes, however only in the short term. Threats work if you keep upping them; when coercive leaders run out of threats, they can’t get things done. Should I use it? In a crisis situation, this style can help kick start or turn around a problem. If you
communicate your sense of trust and authenticity, you are unlikely to need to. AUTHORITATIVE LEADERSHIP What is it? The ability to inspire others to trust your vision and follow you willingly. It is a strong, positive, visionary style that requires leaders to establish a strong bond based on trust. Does it work? Yes. People will follow an authoritative leader because they trust the bond between them. It’s one of the reasons that this leadership style, not the coercive style, is promoted within the military – counterintuitive as this may seem. It is a critical leadership style when a new vision is required or a clear direction is needed. Should I use it? Yes. It is the best way for leaders to unleash high performance in others over the long term. ceo-mag.com / Summer 2016
BIOGRAPHY George Kohlrieser is a Professor of Leadership and Organizational Behavior at IMD, where he directs the High Performance Leadership (HPL), Advanced High Performance Leadership (AHPL) and Learning Leadership programs. Kohlrieser is author of the awardwinning bestseller Hostage at the Table: How Leaders Can Overcome Conflict, Influence Others and Raise Performance, which was released in audio version by Talking Book on 24 June 2016. ACKNOWLEDGEMENT Courtesy of IMD.
AFFILIATIVE LEADERSHIP What is it? Affiliative leaders focus on harmony and put people first. It is a leadership style that shies away from confrontation. Does it work? It’s effective in healing wounds in fractured teams and motivating others during stressful periods. Affiliative leaders can struggle to give tough feedback or make hard calls. Should I use it? It has positive elements but you need to be able to adopt an authoritative style when a critical approach is needed. DEMOCRATIC LEADERSHIP What is it? Democratic leaders take everyone’s opinion on board so that all decisions are backed by a consensus. Does it work? It can – with some caveats. Giving everyone in a team a chance to participate in every decision simply takes too long; trying to do this can result in terrible bureaucratic slowdown. However, organizations that can ceo-mag.com / Summer 2016
streamline the process so that democracy does not impede progress can find it positive. Should I use it? Consider combining elements of this approach with an authoritative style. Teams that trust one another, and their leaders, are willing to allow other people to make decisions on their behalf if and when necessary, but they are also willing to speak up if and when needed. PACE-SETTING LEADERSHIP What is it? Pace-setting leaders push their people hard by setting stretch goals. Does it work? It depends. It can work to get quick results from a highly motivated team. When combined with empathy and compassion it can be an effective way of developing people; without these characteristics it will have a fundamentally negative effect. Should I use it? Yes, if used in the short term and you are compassionate and empathetic. Otherwise, no.
“Threats work if you keep upping them; when coercive leaders run out of threats, they can’t get things done.”
Global Merger Control
THE GLOBETROTTER’S GUIDE TO MERGER CONTROL: HOW TO AVOID FALLING INTO TRAPS JÉRÉMIE JOURDAN, SOPHIE SAHLIN AND MINA GREGOW
ollowing a record year in 2015, most big merger and acquisition (M&A) transactions now have a signif icant cross-border dimension. In response, multijurisdictional merger filings have proliferated in recent years in line with the growing number of merger regimes around the world. Today, more than 140 countries have adopted some version of a merger control regime, adding a layer of complexity to international M&A deals. Aside from the time and cost burden involved in gaining clearance in every country where the parties operate, companies must now be up-to-speed with the adoption of new merger filing regimes and their different timetables and nuances. In any transaction, companies must conduct an analysis of which jurisdictions they will need to file in, and gain an understanding of key differences in requirements between jurisdictions in order to file with the relevant merger authorities, and avoid disrupting the deal. Here are some of the key questions that need to be addressed in the process:
“It takes experience and skills to navigate through the maze of merger control regimes around the world.”
“Is this a merger?” Although a large majority of jurisdictions require merger filings in the case of a merger or an acquisition of control, some jurisdictions have chosen to create additional ‘triggering events’. These may cover situations in which an acquirer is not seeking sole control, such as in a joint venture or the purchase of a minority stake. Sometimes this only applies to certain industries. “Do we meet the thresholds?” Although there is some level of harmonisation a mong d i f ferent cou nt r ies , i mpor ta nt discrepancies remain between merger filing regimes. Merger f iling obligations may be triggered by different factors such as the size of the parties’ turnover and assets, as well as market share. The market share thresholds are
particularly tricky, since they require that the parties define the relevant market, a notoriously complex task. “We don’t have to file, why would we?” Particular attention to the relevant competition landscape is normally warranted in jurisdictions with voluntary merger control regimes, where it is recommended to file if the transaction is likely to raise competition concerns, or else the risk is that the authorities will start investigating the transaction on their own account. This forces the parties to make certain difficult strategic decisions, which can have a significant impact on timing. For example, in Australia - which has a voluntary merger regime - the parties can decide to make a full filing, a very simplified filing or wait for a potential information request. The parties can also decide to close, even when the merger authority is reviewing a transaction, although that can be risky if the authority raises concerns. “No overlap, no filing?” The majority of merger control regimes worldwide today require that at least two of the parties to the transaction are active in the relevant jurisdiction for the regime to be triggered. There are, however, exceptions to this rule, and these countries are generally referred to as “singletrigger” jurisdictions, meaning that it is enough that only one party to the transaction be active in the relevant jurisdiction. In the EU, such exceptions can be found in Spain and Portugal, where transactions may be subject to merger control even when the investing company has no business there, provided the target meets the market share thresholds (no increment is required). Outside the EU, different regimes prevail. Ukraine was for a long time (and maybe still is) one of the most notorious single-trigger jurisdictions because of its very low thresholds, ceo-mag.com / Summer 2016
as a transaction required notification where either party generated €1 million in the country. The thresholds were amended in May of 2016, but remain low and can still in some cases be triggered by one party alone. “How long will this take?” Obtaining merger clearance is time-consuming and the review period is regularly protracted as parties often have to enter into pre-notification discussions with merger authorities. As a rule of thumb, it usually takes at least a month to gain clearance, and in jurisdictions with f ledgling merger regimes and inexperienced authorities, it can take considerably longer than that. In Japan, for instance, the Japan Fair Trade Commission (JFTC) will send multiple extensive questionnaires during the pre-notif ication process, which can significantly delay the date of filing. The JFTC will carry on sending multiple detailed requests during the official 30-day review period, and if it considers that the parties have not responded quickly enough, it could take even the most straight-forward looking transaction to a phase two review, which can take at least 90 days. Similarly, in Indonesia, the official review ceo-mag.com / Summer 2016
period does not start until the Commission for the Supervision of Business Competition (KPPU) has declared the filing complete, which can take two to three months. Indonesia adds an additional layer of difficulty with a voluntary pre-merger filing and a mandatory post-merger filing (which must be submitted within 30 business days of signing) that is required even if a voluntary premerger filing was submitted. Tim ings of merger reviews a re ha rd to predict. For example, France is notorious for its “incompleteness letters” – that is, letters declaring the filing incomplete and restarting the clock. They may come your way on the penultimate day of the merger review period, sometimes without much warning. They are a powerful tool for the authority to obtain hard- to-get information. In summary, it takes experience and skills to navigate through the maze of merger control regimes around the world. It also requires an extensive network of offices or legal contacts around the world to ensure appropriate local assistance. Guiding a complex deal over the finish line is like making soufflé: it requires experience, skill and rigour but it’s not as hard as it’s puffed up to be.
BIOGRAPHY Jérémie Jourdan is partner, and Sophie Sahlin is associate, at global law firm White & Case. Mina Gregow is former associate at White & Case and now Legal Counsel at Stora Enso Group. 47
LIST OF CONTRIBUTORS A
IE Business School
Australian Institute of Business C
IMD Business School
Santiago Iniguez INSEAD
J Jérémie Jourdan
E European Business School
K Kent State University
U University of Exeter Business School University of Pennsylvania: Wharton University of the Sciences W Laurie Walker White & Case
Nicolas Forsans 48
ceo-mag.com / Summer 2016
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Supareak Charlie Chomchan
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that will help you develop both as a businessperson and as an entrepreneur. At EU Business School, we make a difference in students’ lives and propel them to success. PEOPLE HAVE IDEAS. ENTREPRENEURS MAKE THEM HAPPEN.
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