CEO Magazine - Volume 17 by CEO Magazine

Leading Innovation over the last 25 Years

Nurturing Innovation Does Geography Matter? CEO17_OFC_Cover.indd 1

New! 2015 Global MBA, EMBA and Online Rankings

3 Uncommon Ways to drive Happiness in the workplace 22/12/2014 16:57

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CONTENTS

Table of Contents 10 14 17 20

Leading Innovation over the Last 25 Years David Nicholson and Amber Callender

Global MBA Rankings CEO Magazine

Nurturing Innovation: Does Geography Matter? Knowledge at Wharton

Innovation at the University of the Sciences MBA Program Robert W. Mueller

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CONTENTS

24 24 26 28

Donâ&#x20AC;&#x2122;t Knock Innovation, Create a Framework for it Pradeep Chintagunta

Innovation in the Classroom and Beyond Deborah F. Spake

Three Uncommon Ways to Drive Happiness in the Workplace

30 30 34

Meet the Dean Greg Carnes

The New World for Executive MBAs Steef Peters

Mark Crowley

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CONTENTS

Why Being Engaged at Work isn’t as Simple as ‘Being Happy’ Mark Crowley

Fraunhofer – We Invent the Future! Roman Götter

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CONTENTS

40 44 46 48 50

An Online MBA in an Applied Environment Faye McIntyre

Growth in Accessibility of AACSB-Accredited Online Degrees Colin Nelson

Accessibility, Flexibility and Portability Ron Shiffler

Online MBAs: Worthless or Priceless? Prodigy Finance

Why I Connect with Strangers on LinkedIn Henrik Bresman

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CONTENTS

52 56

The MBA in Numbers: Top 10 Ways an MBA can Lead you to Success Australian Institute of Business

Learn, Sleep, Innovate, Repeat Jorge Farinha

60 62 64

CEO Focus: Indra Nooyi Jacksonville University

Application to Graduation Paul Richardson

List of Contributors

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CONTENTS

Published by the International Graduate Forum: Head Office: Communications House, 26 York Street, London W1U 6PZ (UK) Telephone: Fax: Email: Web:

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© 2014 All rights reserved. No part of this publication may be reproduced without the expressed approval of the copyright owner. Whilst every effort has been made to ensure the accuracy of the information in this publication, the Publisher accepts no responsibility for errors or omissions. The Publisher disclaims responsibility for the views and opinions expressed herein by the contributors. Furthermore, the Publisher does not give any warranty regarding the accuracy thereof.

CEO

Victor J. Callender

Group Editor-in-Chief

Alexandra Skinner

Designer

Matt Dettmar

Financial Controller

Anthony Gordon

Head of Production

Steven Whitaker

Features Writer

Amber Callender

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Price per issue, including web access: £10.00 | €12.00 | $15.00 Cover image: Helga Esteb / Shutterstock.com

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INNOVATORS

LEADING INNOVATION OVER THE PAST 25 YEARS David Nicholson and Amber Callender

ike Moore's Law – which states that computing power will double every couple of years – the pace of innovation has increased incrementally over the past 25 years. Where once ideas were circulated by books, which took months or years to prepare and publish, today they cross continents in an instant. Where inventors would petition benefactors for meagre support, today start-ups can raise millions of dollars at a stroke, from wild new sources like crowdfunding. The upshot is that the 21st century has already seen a plethora of life-changing, revolutionary innovations. From the extraordinary search abilities of Google to the versatility and connectivity of the iPhone, the world is becoming technologically enabled in ways that were unthinkable a generation ago. In healthcare, business, engineering and media, the effects are consistently dramatic and far-reaching. People communicate, work, travel and have fun in entirely different ways to their parents’ generation. And the changes just keep on happening, at an ever faster rate. As this listing demonstrates, the greatest innovators of the last 25 years come from many different backgrounds and have tackled very different problems. Yet what unites them is that they have harnessed new technology in imaginative and creative ways, developing products and services that have changed the world.

Feature Innovator Richard Branson When asked to sum up how the Virgin brand does things differently, Sir Richard Branson said: “We focus on just one thing: finding new ways to help people have a good time.” For a company that spans personal finance, aerospace, railways, soft drinks and a dozen other industries, this seems a curiously flippant approach. But delve back into Branson’s commercial history and patterns emerge. After his first venture, Student magazine (which was more or less all about fun), Branson opened a string of record shops where customers could hang out on bean bags, drink coffee and listen to music. “If they relaxed and talked about music, they might be more inclined to buy a record or two,” Branson recalled in a recent blog on Entrepreneur. The same theory applied to Virgin Atlantic, where the famously bearded, jumper-wearing tycoon introduced hot tubs, massages and hairdressing into his Clubhouse Lounges as a means of winning customers. “The idea was basically the same,” wrote Branson.

A couple of decades later, in 2012, Branson acquires mortgage lender Northern Rock from the British government and what does he do? Install ‘Virgin Money Lounges’ where customers can “relax with a cup of coffee, send an email, call home or change the baby.” For all his reputation as an innovator (and it’s a well-travelled path), Branson is really more of a cheerleader and inspiration than someone with genuinely radical ideas. Making business fun, helping your employees to enjoy what they’re doing and your customers to feel that they’re getting an extra level of service with a smile,

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INNOVATORS

is an excellent proposition for any company. It’s something that few can achieve – they’re more likely to turn into David Brent from ‘The Office’ than another Richard Branson. In many cases, Branson has learnt from the mistakes of others. He took careful advice from Freddie Laker, whose upstart airline was squashed by British Airways in the 1970s, when starting Virgin Atlantic. He would later fight a tough legal battle against BA over the latter’s ‘dirty tricks’ campaign and won substantial damages. Equally, he took on the British government itself over the loss of his Virgin Trains franchise for the UK West Coast line, winning once more. Rather than start from scratch, Branson has built an empire by sprucing up tired business concepts. “A lot of supposedly new ideas are nothing more than recycled old ones,” he candidly admits. “If you can repurpose an existing product, there is no reason why you shouldn’t step in.” Although a billionaire several times over (and has been for many years), Branson retains the aura of a plucky start-up businessman, a David confronting the might of the industrial Goliaths. This in itself is a kind of innovation, proving to all small businesspeople that they can challenge seemingly unsurmountable odds. Setting himself and his company challenges and taking on bets are among Branson’s prime

motivational tools. He tells of the day his aunt challenged him to learn to swim, aged five, to earn 10 shillings. So he jumped in a river and somehow survived. Although he likes to give careful consideration to potential downsides, you sense that Branson’s adventurism and recklessness typically get the upper hand. As one of his publications says on the cover: ‘Screw it, let’s do it’. There have inevitably been screw-ups along the way, most recently the death of one of the pilots on a Virgin Galactic test flight in October 2014. And a passenger died in 2007 when a Virgin train derailed in Cumbria. In both cases, Branson rushed to the scene and was admirably open and honest about his sadness and upset. Branson’s fully-engaged, accessible, open-toideas, prank-loving (who can forget him dressed as a stewardess in lipstick and tights) daredevil, up-for-anything attitude has won him countless friends and fabulous wealth. His impact on the global business community (and on his millions of customers) is all about that.

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INNOVATORS

Communications

Jeff Bezos

Jennifer Staple-Clark

Jack Dorsey is an entrepreneur and web developer, better known as the co-founder of Twitter. In 2008, he was named by MIT’s Technology Review as one of the top 35 innovators in the world under the age of 35. In 2012, The Wall Street Journal gave him the ‘Innovator of the Year Award’ for technology. Twitter, now one of the leading tech firms, turns over $649 every 30 seconds.

The founder and CEO of Amazon, Jeff Bezos, first set up office in his garage, where along with a few employees he began developing software. After expanding operations into a two bedroom house, Bezos launched Amazon in 1995, and in two months sales reached $20,000 a week. Although Amazon only sold books initially, Bezos diversified the brand by offering electronics, clothes, toys and more, and yearly sales jumped from $510,000 in 1995, to over $17 billion in 2011.

Reid Hoffman

Larry Page

In 2000, Jennifer Staple-Clark founded Unite For Sight in her Yale dorm room. As a result of Staple-Clark’s leadership and her focus on entrepreneurial innovation, Unite For Sight is a leader in providing cost-effective care to the world’s poorest people. By investing human and financial resources in the social ventures of eye clinics in developing countries, Unite For Sight has provided eye care to more than 1.7 million people living in extreme poverty, including more than 65,000 sightrestoring surgeries.

Co-founder of LinkedIn, Reid Hoffman, decided in college that he was going to try and influence the state of the world on a large scale. Initially he had planned to become a professor, but said “I realised academics write books that 50 or 60 people read and I wanted more impact.” After graduating from Stanford he went on to cofound his first company, SocialNet.com in 1997, and LinkedIn in December 2002. It launched in 2003 as one of the first online social networks centered around business and, as of November 2014, had more than 332 million members in more than 200 countries.

As the co-founder and current CEO of Google, Larry Page leads one of the most innovative and successful companies in the world, perhaps in history.

David Karp

Sir Tim Berners-Lee

David Karp is the founder and CEO of shortform blogging platform Tumblr. Tumblr is a combination of microblog and social networking site. Tumblr was bought by Yahoo in May 2013 for $1.1 billion and, in February 2014, was hosting over 17 million blogs.

In 1989, Sir Tim BernersLee invented the World Wide Web, an Internet-based hypermedia initiative for global information sharing while at CERN, the European Particle Physics Laboratory. He wrote the first web client and server in 1990.

Information Technology

Healthcare

Steve Jobs

Dr Laura Niklason

Steve Jobs is widely known as the co-founder, chairman, and CEO of Apple Inc. One of his greatest innovations was in the reinvention of Apple during the 90s. With a new management team, Jobs began to create ingenious products, such as the iMac and iPhone, along with a new effective marketing strategy, which led Apple to success.

Dr Laura Niklason is recognised as one of the world’s leading experts in cellular therapies and regenerative medicine. She is a worldleader in the development of engineered blood vessels, as well as the engineering of whole implantable tissue-engineered lungs. Niklason speaks nationally and internationally on her research, has received numerous national awards for scientific excellence, and was named one of only 19 ‘Innovators for the Next Century’ by US News and World Report in 2001. Niklason’s work on lung regeneration was cited as one of the top 50 most important inventions of 2010 by Time Magazine.

Jack Dorsey

Sergey Brin The multi-billionaire cofounder of Google, Sergey Brin, has been involved with some of the company’s most innovative technologies, including Google Glass and Google’s self-driving cars.

Business and Economics Jack Welch Jack Welch was the chairman and CEO of General Electric from 1981 to 2001. Welch joined General Electric as a junior chemical engineer in 1960, becoming the vice president of GE’s entire plastics division by 1968, until he became GE’s youngest CEO and chairman in 1981. Under Welch’s leadership, GE increased market value from $12 billion in 1981 to $280 billion in 2014; his public philosophy was that a company should either be the best or second best in a particular industry, and if not, it should be left completely.

Jorgen Vig Knudstorp When Jorgen Vig Knudstorp was appointed CEO of Lego in 2004, the company was on the brink of extinction, out of touch with its customers and struggling to manage its costs. However, Knudstorp brought fiscal responsibility to the Danish toy maker and, in the process, handed creative direction to its core fans. It worked. Creativity combined with smart management ultimately saved the company.

Sustainability and CSR Tony Fadell Tony Fadell, the product design star who helped create the iPod while at Apple, is the CEO of Nest, which he founded four years ago. The company’s innovative thermostats use intelligent automation to learn your habits and adjust the heating and cooling in your home accordingly – saving money and conserving resources in the process. Nest was acquired by Google in January 2014 for $3.2 billion.

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INNOVATORS

Bennet Fisher Bennet Fisher is the co-founder and CEO of Retroficiency – software which uses data sets to suggest energy-saving measures for homes and buildings. Fisher co-founded the energy analytics start-up back in 2009 with fellow student Bryan Long at MIT’s Sloan School of Management, after finding several challenges in implementing building energy efficiency across the industry. The software combines energy analytics and building modelling with data from existing energy audits in order to determine the most efficient energy method for projects, and as of April 2014 more than 2 billion square feet. Retroficiency was also named as one of America’s Most Promising Companies for 2014 by Forbes.

Dan Yates and Alex Laskey Dan Yates and Alex Laskey co-founded the software company OPower, which collects energy-use data on millions of homes around the world and partners with 93 utilities in eight countries. It went public in April and is now valued at $1 billion.

Non-profits Salman Khan The Khan Academy is a non-profit organisation, which was created in 2006 by Salman Khan in order to provide ‘a free, world-class education for anyone, anywhere’. In 2003 Khan began tutoring his cousin in mathematics over the internet using Yahoo!’s Doodle notepad. After other relatives sought his tutoring, he decided it would be more practical to create YouTube tutorials instead. The popularity of his videos prompted Khan to quit his job as a financial analyst in 2009 and focus on developing his own YouTube channel, The Khan Academy, which went on to receive more than 458 million views in just a few years. Soon after, Khan published a book about the Academy and his goals for education called The One World Schoolhouse: Education Reimagined.

Ankur Jain Ankur Jain is the founder of the Kairos society, a non-profit organisation of young entrepreneurs working to create billion-dollar solutions to the world’s challenges. Jain’s goal in forming the society was to encourage students to form global start-up companies to address world issues such as green technology development and access to education. In early 2011, the society hosted its third annual global summit at the United Nations, New York Stock Exchange, and Rockefeller Estate, showcasing 50 of the most innovative ventures launched by the society’s fellows that year.

Engineering Elon Musk Elon Musk founded his third company, SpaceX, in 2002, a company which manufactures and launches advanced rockets and spacecraft, with the ultimate goal of enabling people to live on other planets. He views space exploration as a way of expanding and preserving human life. Musk has reached a series of historic milestones with SpaceX, with it being the only private company ever to return a spacecraft from low-Earth orbit, which it first accomplished in December 2010.

Science Technology Easton LaChappelle Easton LaChappelle is the teenage creator of the 3D printed, brain powered prosthetic arm. At the age of 14 LaChappelle taught himself about electronics and programming, building a robotic hand out of Lego bricks, fishing wire, surgical tubing for fingers, and five independently-controlled servos. After finishing the robotic hand, LaChappelle was unsatisfied with the functionality and set about creating a second version involving dental rubber bands and jeweller’s wire. However, after meeting a young girl at the Colorado science fair with an $80,000 prosthetic limb, controlled by a spinal implant, LaChappelle realised he could build a prosthetic arm which would be functional and affordable. Easton’s robotic arm Version 3.0 comes in at $250 and he has already received an order of 5,000 from Heineken to serve beer at bars.

Media Reed Hastings The infamous Netflix was cofounded by Reed Hastings back in 1997. Hastings had the idea for the site after a late fee for Apollo 13, which was six weeks overdue and left him owing the video store $40. He said, “later, on my way to the gym, I realised they had a much better business model. You could pay $30 or $40 a month and work out as little or as much as you wanted,” and thus he developed the idea for an online rental service, which now has over 44 million subscribers.

Ben Silbermann Ben Silbermann is the CEO and cofounder of Pinterest, which grew from 5,000 users in August 2010 to 17 million in April 2012. Silbermann had initially planned to be a doctor, just as his sisters and parents had, however, during his junior year, Silbermann developed an interest in business. After quitting a job at Goggle, Silbermann employed the help of college friend Paul Sciarra to create Tote, a catalogue app. However, after the app’s failure to gain significant attraction, Silbermann and Sciarra teamed up with Evan Sharp to create an online pinboard which would come to be known as Pinterest.

Arianna Huffington In 2005, Arianna Huffington launched the online site The Huffington Post, co-founding the platform with Kenneth Lerer and becoming its editor-in-chief. The site was initially known for its blogging, liberal punditry and news aggregation, but over the years has grown to cover a wide range of media categories, from politics to sports to business. In 2011, Huffington sold the site to AOL for more than $300 million and subsequently became president and editor-in-chief of the company’s Huffington Post Media Group.

Social Change Lauren Bush FEED was founded in 2007 by Lauren Bush. As a World Food Program student spokesperson, Bush visited the countries WFP operate in and after witnessing the effects of hunger first hand decided to create ‘good products that help FEED the world’. The first FEED 1 bag, an organic cotton and burlap bag, was created to help raise funds for school feeding operations, the ‘1’ signifying that each bag provides enough meals to feed a child in school for one year. Bush expanded her product line in 2013 through a partnership with Target, selling FEED-branded T-shirts, bake ware, and other goods, with each product holding a measurable donation. FEED has been able to provide over 85 million meals globally through the WFP and Feeding America. CEO MAGAZINE

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MBA REVIEW

CEO MAGAZINE

2015 MBA Rankings CEO Magazine’s new annual MBA rankings have been compiled based upon key performance indicators considered to be of interest and value to potential students. Thus, international diversity, class sizes, student work experience, faculty-to-student ratios, and faculty qualifications – both academic and professional – have been given considerable weight. With competition between business schools continuing to increase, it is important for schools to understand what students really want. Schools ranked highly by CEO Magazine have been successful in this goal.

Global MBA Rankings Arizona State University: Carey

North America

Ashridge Business School

Europe

Audencia Nantes

Europe

Australian Institute of Business

Australia

Birmingham Business School

Europe

Brunel Business School

Europe

Carnegie Mellon University: Tepper

North America

Ceibs

Asia

North America

North Carolina State University: Poole

North America

Northwestern University: Kellogg

North America

Northwestern University: Kellogg/Hong Kong UST

Asia

Ohio State University: Fisher

North America

Reykjavik University

Europe

Rice University: Jones

North America

Rollins College

North America

SBS Swiss Business School

Europe

South America

Shanghai JiaoTong University: Antai

Asia

North America

Southern Methodist University: Cox

North America

Cornell University: Johnson

North America

Stanford Graduate School of Business

North America

Darmstadt University of Applied Sciences

Europe

The Lisbon MBA

Europe

Dartmouth College: Tuck

North America

The University of Adelaide

Australia

Duke University: Fuqua

North America

The University of North Carolina at Greensboro: Bryan

North America

Durham University

Europe

Trium: HEC Paris/LSE/New York University: Stern

Europe/North America

École des Ponts Business School

Europe

Tsinghua University/INSEAD

Asia/ U.A.E./Europe

Elon University: Love

North America

Emory University: Goizueta

North America

UCLA: Anderson/National University of Singapore

N America/Singapore

ESCP Europe

Europe

European University

Europe

Fordham University

North America

Georgetown University: McDonough

North America

Georgia Institute of Technology: Scheller

North America

CENTRUM Católica Graduate Business School Columbia Business School

University of California, Berkeley: Haas

North America

University of California, Los Angeles: Anderson

North America

University of Cambridge: Judge

Europe

University of Chicago: Booth

North America

University of Maryland: Smith

North America North America

Griffith University

Australia

University of Massachusetts, Amherst: Isenberg

Harvard

North America

University of Michigan, Ann Arbor: Ross

North America

HHL Leipzig Graduate School of Management

Europe

University of Minnesota: Carlson

North America

HKUST Business School

Asia

University of Nebraska, Lincoln

North America

IE Business School

Europe

University of North Carolina, Chapel Hill: Kenan Flagler North America

IESE Business School

Europe

University of Notre Dame: Mendoza

North America

IfM Institut für Management

Europe

University of Pennsylvania: Wharton

North America

Europe

University of San Diego

North America

Indiana University: Kelley

North America

University of Southern California: Marshall

North America

INSEAD

Europe

University of Texas: Austin

North America

Europe

University of Virginia: Darden

North America

Kennesaw State University: Coles

North America

University of Washington: Foster

North America

Lancaster Management School

Europe

University of Wollongong Sydney Business School

Australia

Lehigh University

North America

Victoria Graduate School of Business

Australia

London Business School

Europe

Vilanova University

North America

Lorange Institute of Business

Europe

Wake Forest University

North America

Loyola Marymount University

North America

Warwick Business School

Europe

Australia

Washington University in St. Louis: Olin

North America

MIT: Sloan

North America

Winthrop University

North America

Nanyang Business School

Asia

Worcester Polytechnic Institute

North America

Asia

Yale School of Management

North America

IMD

International University of Monaco

Macquarie Graduate School of Management

National University of Singapore

New York University: Stern

CEO MAGAZINE

Data Sourced from the Financial Times Global MBA Rankings 2014, Business Week MBA Rankings 2014, US News & World Report MBA Rankings 2014 and CEO Magazine MBA Rankings 2015. ‘Top 20’ full-time, part-time and EMBA programmes have been considered.

MBA REVIEW

Global EMBA Rankings

Jack Welch Management Institute

North America

Jacksonville University

North America

Kennesaw State University: Coles

North America

Kent State University

North America

Lancaster Management School

Europe

Lorange Institute of Business

Europe

Ashridge Business School

Europe

Audencia Nantes

Europe

Australian Catholic University

Australia

CENTRUM Cat贸lica Graduate Business School

South America

Durham University

Europe

Millsaps College: Else

North America

ENPC Fox Executive MBA

Europe/North America

MIP Politecnico di Milano

Europe

ESADE Business School

Europe

Porto Business School

Europe

European University

Europe

Queens University of Charlotte: McColl

North America

Florida International University

North America

Reykjavik University

Europe

Fordham University

North America

RMIT University

Australia

HHL Leipzig Graduate School of Management

Europe

IE Business School

Europe

SBS Swiss Business School

Europe

IfM Institut f眉r Management

Europe

University of North Alabama

North America

INDEG-IUL-ISCTE Executive Education

Europe

International University of Monaco

Europe

University of Washington: Foster

North America

University of Wollongong Sydney Business School

Australia

CEO MAGAZINE

MBA REVIEW

NORTH AMERICAN MBA RANKINGS

ONLINE MBA RANKINGS

TIER 1

RANK

SCHOOL

REGION

Appalachian State University

European University

Europe

California State University, San Bernardino

The Open University Business School

Europe

Colorado Technical University

Durham University

Europe

Florida International University

IE Business School

Europe

Fordham University

International University of Monaco

Europe

Jacksonville University

CENTRUM Católica Graduate Business School

South America

Kennesaw State University: Coles

Australian Institute of Business

Australia

Kent State University

SBS Swiss Business School

Europe

Le Moyne College: Madden

Jack Welch Management Institute

North America

Millsaps College: Else

Deakin University

Australia

Queens University of Charlotte: McColl

Griffith University

Australia

Simmons College

= 10

Georgia WebMBA

North America

University of North Alabama

= 10

University of the Sciences

North America

Colorado Technical University

North America

University of the Sciences University of Washington: Foster

= 12

MIP Politecnico di Milano

Europe

University of West Georgia

= 12

RMIT University

Australia

Winthrop University

= 13

Appalachian State University

North America

= 13

Queens University of Charlotte: McColl

North America

= 14

La Trobe University

Australia

TIER 2

= 14

Swinburne University of Technology

Australia

Fairfield University

University of California, San Bernadino

North America

Northwest Missouri State University: Booth*

Florida International University

North America

Syracuse University: Whitman*

University of North Alabama

North America

University of Alabama in Huntsville

University of Memphis: Fogelman

North America

University of Florida: Hough

University of Nebraska, Lincoln

North America

University of Memphis: Fogelman

Northwest Missouri State University: Booth

North America

University of Nebraska, Lincoln

Syracuse University: Whitman

North America

Wake Forest University*

University of Florida: Hough

North America

AUSTRALIAN TOP10 MBA RANKINGS

EUROPEAN MBA RANKINGS

University of Wollongong Sydney Business School

Ashridge Business School

Macquarie Graduate School of Management

Audencia Nantes

Victoria Graduate School of Business

Birmingham Business School

Australian Institute of Business

Brunel Business School

The University of Adelaide

Carlos III University of Madrid

Griffith University

Darmstadt University of Applied Sciences

RMIT University

Durham University

Australian Catholic University

École des Ponts Business School

La Trobe University

ESADE Business School

Swinburne University of Technology

European University

Deakin University

HHL Leipzig Graduate School of Management

NORTH AMERICAN MBA RANKINGS

IE Business School IfM Institut für Management INDEG-IUL-ISCTE Executive Education International University of Monaco Lancaster Management School Lorange Institute of Business MIP Politecnico di Milano Porto Business School Reykjavik University SBS Swiss Business School The Lisbon MBA

*Incomplete data 16

CEO MAGAZINE

KNOWLEDGE AT WHARTON

NURTURING

INNOVATION Does Geography Matter?

Hardly a day goes by without a company or regional government announcing an innovation center. But this may not be the best way to kindle creativity, writes Roopa Unnikrishnan. Unnikrishnan is the founder of Center10 Consulting, which focuses on innovation, strategy, talent and organizational change. She has more than 15 years’ experience in roles at Fortune 500 companies. Find her on Twitter @roopaonline.

n October 29, Johnson & Johnson (J&J), the New Brunswick, N.J.-based pharmaceutical, medical devices and consumer goods giant, announced the launch of its Asia Pacific Innovation Center. Located in Shanghai with satellites in Singapore, Australia and Japan, this unit extends the J&J innovation network beyond its original chain of facilities in London, California and Boston. While laudable, J&J should think more innovatively about how it might source

innovation. Some of the more interesting consumer and digital plays continue to come from unexpected places. In today's age, it is time to start thinking about virtual networks rather than centers that require personnel and capital-intensive investments. Instead of a chain of pearls, a more appropriate metaphor might be a net of diamonds – with links in Africa, Asia and the Nordics, underpinned by a big data center that leverages customer data and the web. A report from the Boston Consulting Group (BCG) on the most innovative companies shows an increasing vitality around innovation investment in rapidly developing economies (RDEs) such as China, India, etc. In addition, two-thirds of breakthrough innovators surveyed by BCG said that they often generate new ideas for products and growth from social media and big-data mining. Innovators who have introduced distinctive products have been identified as casting a wider net and building a culture more attuned to breakthroughs than incremental innovation. What we’re seeing here is a paradigm shift that goes beyond the current approach that looks for hotbeds of creativity. Why does geography feel less critical to innovation these days? The reason, in part, is that all elements of innovation – the innovation value chain, as it were – are slowly decoupling from their traditional physical underpinnings. The innovation value chain – insight, inspiration, design, development and implementation – is shifting to become increasingly virtual and personal. Traditionally, universities and large companies were seen as the seats of capability building and insight development. This view has been the core of much writing, such as The Geography of Innovation by academic Maryann Feldman, which asserts that product innovation forms clusters in regions that provide access to knowledge and commercialization tools. But a lot has changed in the two decades since this work was published. While traditional CEO MAGAZINE

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KNOWLEDGE AT WHARTON

centers of innovation such as Silicon Valley or the Route 128 corridor near Boston continue to draw upon the resources of institutions such as Stanford University or MIT, and the entrepreneurial ecosystem that has grown up around them, today that bedrock of knowledge is shifting. For example, MOOCs (massive open online courses) allow free access to training from the world’s top universities. As these courses proliferate, they will rapidly increase the geographic reach of cutting-edge thinkers and teachers traditionally bound by the high walls of academia. At last count, 2.7 million students used Coursera’s technical courses worldwide. Partnerships have emerged that bow to the power of these tools – for example, Georgia Tech, Udacity and AT&T have teamed up to offer an online master’s degree in computer science. This is a whole new way to advance knowledge and skills. More importantly, there is an emerging group of players who are much more focused on specific competency building – data management, data security, etc. – and they are set to change the paradigm of learning. Rather than front-loading education (getting that master’s degree), will more talented young students opt to build their capabilities along the way through these resources? In a fast-changing world where new paths emerge and old ones wither away almost every day, wouldn’t that seem to be the more rational option? The emergence of reverse innovation and big data is about finding new spaces for breakthrough innovation.

Of course, they take work; it’s not as easy to identify unmet needs as with tried and tested consumer research efforts – shadowing buyers in London department stores, for example. In fact, it’s getting much more interesting to go back to the method’s anthropological roots – to follow the community health worker in India. This is what inspired the insight that it would be best to equip community workers in India with tools to treat patients locally rather than try to transport them to far-away hospitals. Similarly, as data becomes more accessible and diverse, insights are no longer the stronghold of R&D departments. Design and development have also drifted into the virtual space of the web. For example, collaborators from Chile and Germany engaged with data and insights virtually to create a very real product that addresses the needs of premature infants and their mothers. BabyBe UG created a product that is brilliant in its use of data, sensors and new materials. It consists of three modules: a bionic mattress with a skin-like gel surface that takes on the temperature and gentle shapes of the mother; the “turtle” that rests on the mother and captures her breathing rhythms and heartbeats, and the control module that makes the connection between the turtle and mattress. Neither of the co-founders of BayBe hail from the health care industry; they have sourced their expertise from a virtual network and built from insights generated by data and a deep knowledge of materials. They have spanned the globe as they’ve designed, developed and implemented their product.

Challenging Barriers to Entry

The emergence of reverse innovation and big data is about finding new spaces for breakthrough innovation. 18

Similarly, outsourced development shops, whether factories-for-hire in China and India or sites like Quirky.com, have challenged traditional barriers to entry. Quirky.com evaluates, selects and funds innovation production based on the wisdom of the community. Thousands of creative people around the world have submitted their ideas to be evaluated by Quirky, and participants can vote for those with the most potential. Finally, centers of influence have been crafted around access to capital, technology and talent — the building blocks of implementation. Capital access is being transformed. The extreme case is, of course, Kickstarter. This is not just a way to get the recording of a new song financed. In 2013, a record $10.3 million was raised by the Pebble smartwatch, which caught fire due to its design and compatibility with multiple platforms, including Android and Apple’s iOS. Not only did this peer-to-peer financing approach deliver the capital, it built a following as evidenced by the fact that Best Buy began selling the Pebble in July 2013, and was sold out in five days. At the more sophisticated end of peer-sourced capital, Sand Hill Exchange is an aggregating marketplace for users to trade startup futures. Sand Hill allows investors and non-investors alike to participate in the growth of emerging companies. By crowdsourcing sentiment, they provide transparency to the startup valuation process. The exchange also clumps similar startups together, creating a view of where transformative efforts are focused. Additionally, it provides a new mechanism to funnel capital to startups, rather than tapping the usual suspects – venture capitalists and institutional investors.

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As for company investments, BCG’s study shows that firms in emerging markets are outpacing those in other nations at increasing R&D and innovation funds; almost three-quarters of companies located in RDEs expect to increase spending on innovation next year, compared with only 57% of companies in developed countries. Technology is increasingly accessible through software as a service, and cloud computing is redefining the “company.” End-users access cloud-based applications through a web browser or mobile app while user data is stored on servers at a remote location. So, one-member or small organizations now have professional management, communications, CRM and financial systems that were hitherto the realm of large enterprises. As a result, more than a third of all Americans are classified as freelance or “independent” workers. As for talent, when the New York Federal Reserve Bank named Freelancers Union founder Sara Horowitz last year to its board of directors, it sent a signal that the ranks of the self-employed are growing in the halls of big finance. In this new world, these young innovators remained in their milieu, met online, designed a concept, prototyped, produced and got a product into production without the supply chain management issues or billing conflicts that often plague larger enterprises.

So, where does that leave us? Practically, of course, large companies tend to be key drivers in the economy. Their genius lies in reach (scale), governance (regulation) and operations (manufacturing, brand-building and sales). But more and more, as the “big whales” of innovation get rarer, and as innovations become more dependent on weak signals, entrepreneurs are the innovators of the economy. Large companies may provide for 99% of the economy’s actual wealth and productive work. However, the 1% of entrepreneurs who succeed has the potential to set new directions.

A Portfolio Approach to Innovation Environments that provide entrepreneurs with access to the capital, infrastructure and policy support they need are in essence putting into place their version of a portfolio approach to innovation. Entrepreneurs are the test balloons for future growth, and they are rarely sticking to specific geographies. UNESCO sponsors an innovation observatory called Netexplo, a network of more than 200 journalists, scientists and academics who detect outstanding initiatives in the Internet and digital technology. Since 2008, this group has recognized 100 digital innovators, who it says have spurred some of the most significant changes in their environments or in changing the assumptions of an industry. The top six are recognized with awards, and the top of that list is proof positive that geography may be replaced by platforms and networks. For example, the non-profit Ushahidi was born to address a specific crisis – the violence that broke out after Kenya’s disputed election in 2007. Co-founder Ory Okolloh called for a simple tool to map violence anonymously and hence help to prevent it. Post-crisis, Ushahidi set out to build a product that solves the problems created when digital infrastructure

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is spotty. Ushahidi’s robust, beautifully designed BRCK wireless network generator isn’t the only sensation, however. Ushahidi has come to represent the people behind a platform that powers the collaboration of Kenyan citizen journalists. The website has 45,000 users in Kenya. Since early 2008, Ushahidi’s efforts have grown from an ad hoc group of volunteers to a focused organization of individuals with a wide span of experience ranging from human rights work to software development, as well as a strong team of volunteer developers primarily in Africa. This ecosystem of innovators has developed seven innovative products and services that are focused on doing good, but are also easily leverageable commercially. Other Netexplo award winners come from emerging innovation ecosystems, such as the justice crowdsourcing site and app Social Cops from India, or the digital taste generator called the “digital lollipop” from Singapore. The former has a global advisory board, and the latter was developed at the National University of Singapore by Sri Lankan researcher Nimesha Ranasinghe.

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

What’s the next iteration of the Innovation Center? Lately, I’ve spent at least some time each morning on a small number of websites that get the juices flowing. Producthunt. com and Sandhill.Exchange are two examples of a whole new generation of innovation ecosystems. Product Hunt is a curation of the best new products emerging every day. It helps you discover the latest mobile apps, websites and technology products that are in early stages, and the magic in the system lies in the insights that the founders of these startups get from functional and industry experts who are invited to be contributors in the system. These are the types of innovation ecosystem disrupters and platforms that allow a lone Icelandic innovator to dream global thoughts. Maybe Silicon Valley and Silicon Alley should consider how companies and individuals the world over are using the tools these firms have developed in past decades to create a network of innovation that is sensitive to the inspiration and innovation happening across the globe. Open up your minds and purses, I say. More importantly, don’t keep trying to get these amazing enterprises to come to you – find a way to get to them.

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UNIVERSITY OF THE SCIENCES

INNOVATION at the

UNIVERSITYOF THE SCIENCES

MBA Program

Robert W Mueller

he pharmaceutical marketplace is all about change and innovation. Pharmaceutical companies, as well as medical device and diagnostic companies, live and die by innovation. Company stock valuations are based on what promising late stage compounds and products are in the pipeline, rather than just the products that are currently on the shelf. But this pipeline of blockbusters has become harder and harder to maintain. The importance of the innovation of new products has been made even more critical by the large number of patent expiries of the past six years. The industry challenge has become about how to backfill the revenue lost with these losses.

The patent cliff will have shed the industry of $76billion by the close of 2014

2010 sales in US Billions

Source: RSC, January 2010

Students work with faculty guidance to write innovative drug development plans for rare diseases and biologic products.

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There have been very few blockbuster products to emerge in the recent past. In addition, there are global efforts to restrain healthcare costs. In this rapidly changing environment, novel treatment approaches that address the unmet needs of patients and are deemed worthwhile to payers is urgently required.

The Role of MBA Programs The industry has redirected its focus from small molecule, large market compounds to the development of biologic and specialty market drugs. MBA programs, even those that specialize in pharmaceuticals and healthcare, are not, however, in the business of training engineers, chemists and biologists to discover and develop compounds and devices. They do, however, train the managers who will ultimately make strategic decisions and build-in efficiencies to find profit where it did not exist before. MBA graduates must, due to market turmoil, no longer “just” manage an industry well, they now need to change it. In short, all MBA programs need to do more than train managers – they need to develop transformational teams and leaders for a dynamic healthcare sector. Graduates need to be creative, critical thinkers who know more than what net present value and market segments are. They need to play their part in reinventing what their enterprise is doing.

The MBA Program at the University of the Sciences So how does USciences address this challenge? We do it in a variety of ways: it is in the DNA of our faculty (who are, or were, senior industry executives); it is part of our small classroom environment where the give and take of Socratic method moves the discussion well beyond the dissemination and absorption of facts, theory and figures; it is embedded in the summative practicums that apply theory to real world corporate challenges; and it is displayed in the very demanding final capstone projects that our students produce. Capstone Projects: The Capstone project produces complete, creative and innovative individual student work. This significant individual work is based on an important and original pharmaceutical and healthcare business hypothesis. The Capstone requires the student to draw on the entire syllabus of business knowledge derived from the MBA courses. Often these papers and presentations have led to new jobs and promotions for our graduates – and possible solutions for the industry. A few recent examples include: `` The use of voluntary licensure as a strategy for pharmaceutical companies to manufacture and sell novel but expensive medications in the third world. The paper explored issues of access, revenue and

public perception of companies producing expensive biologic medications. `` Understanding the correlation between the effective management of inventory and supply chains and corporate profitability. The study discovered a strong relationship between the two and offered suggestions about where the greatest opportunities to free up corporate cash were. This led to the graduate being given a new job offer. `` The development and combination of several novel mobile health devices that sought to combine extant technologies into a single device that was not merely additive in its effectiveness – but synergistic. `` The implementation of clinical research organizations (CROs – responsible for clinical trials) in the BRIC countries. This global strategy was seen as a way to reduce costs while integrating pharmaceutical companies in these emerging markets. This led to the graduate being given a new job offer. `` The exploration of Adaptive Clinical Trial Design in oncology drug development. This paper looked at the advantages of making clinical trials open to midcourse design changes based on emerging data. The advantages to pharmaceutical companies would include speed and a reduction in the number of study subjects. Faster trials would therefore mean longer patent life and greater revenue.

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MBA programs need to develop transformational teams and leaders for a dynamic healthcare sector. As each student produces a Capstone, there are many more innovative examples than those listed above. Multidiscipline Strategic Management (MSM): The USciences’ MBA requires the students to complete three MSMs that are summative courses that apply information from courses in marketing, finance and the drug development process to real world situations. The Finance MSM has been highly successful at giving students unpaid consulting projects with large pharmaceutical companies, hospitals and start-ups. The students use complex financial modeling techniques to address and innovatively propose solutions to difficult strategic decisions. Project titles have included:  The financial implications of various drug delivery systems for a dermatological product currently in development. The dynamic model allowed students to explore a series of “what-if” scenarios to understand the possible future for these delivery systems.  The financial viability of building another surgical suite in a hospital was analyzed to help in the decision process.  The animal care division of a large pharmaceutical company was explored to determine if it was the best (most profitable) use of that capital.

 The costs associated with the development of a posttraumatic stress disorder (PTSD) center for women returning from theatres of war were examined to help determine its viability. In the MSM course for product development, students work with faculty guidance to write innovative drug development plans for rare diseases and biologic products, not just blockbuster drugs, beginning with product discovery through to product launch. In the marketing MSM course students with guidance from the faculty member produce marketing plans for late-stage compounds preparing for launch in a dynamic reimbursement environment. While these and other projects might be described as academic exercises, the reality is that they all put students in a situation where they could critically and innovatively build solutions to difficult business challenges. Faculty Scholarship: While the University of the Sciences MBA faculty is primarily focused on teaching, there are a number of innovative research findings that have been made. These include:  “Inside Intrepreneurship – Being Entrepreneurial in a Corporate Environment” (Robert Mueller) explored the challenges of being innovative in a large corporation. (PM360 Magazine 2011).

 “A Review of Approaches for the Management of Specialty Pharmaceuticals in the US” – examination of economic value of interventions employed to control cost and use of specialty drugs. (Pharmacoeconomics, 2014) Faculty Consultancy: MBA Faculty members provide consultancy services for brand plan marketing strategies, employee training, and processes to address changes in healthcare payer systems. Taken together, the real world backgrounds of our faculty, the challenges facing the industry and the creative opportunities afforded to our students provide for an innovative culture that helps produce specialized, forward-looking, creative graduates. We are proud of what they are accomplishing and continue to look for ways to tap into their abilities.

Biography Ø Robert W Mueller, EdD, is is Director of the MBA Program and Associate Professor of Pharmaceutical and Healthcare Business at the University of the Sciences, Philadelphia, PA, USA.

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It is critical to establish the right culture, environment, and rewards system within an organization to help it deliver the innovations needed for success.

Don’t knock Pradeep K. Chintagunta

n the movie Apollo 13, the crew must deal with rising carbon-dioxide levels. To fix the problem, they need to install square canisters in—you guessed it—round holes. "I suggest you gentlemen invent a way to put a square peg in a round hole. Rapidly," urged flight director Eugene Kranz, played by Ed Harris, to the engineers back on Earth.

Create a framework for it

Companies today depend on innovation to survive, a characteristic displayed by the engineers on that fateful mission. But outside of the space program, the term is applied to some far less momentous moments. In earnings calls, Kellogg CEO John Bryant has referred to new Kellogg products, including its peanutbutter-flavored Pop-Tarts—“Gone Nutty!”—

as innovations. As the Wall Street Journal quickly pointed out, S&P 500 CEOs had also applied “innovation” to perfume, potash, and higher-alcohol beer. Is the term being misused? It may be useful to step back and think about the tasks that are fulfilled by innovations. At a very basic level, the role of innovation in business is to create, sustain, and enhance the success of a

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company, product, or product line in the market. This can be done in a variety of ways that are new to the company in question. If Kellogg’s wanted to increase its overall sales of the Pop-Tarts line and prevent customers from defecting to rivals or to other breakfast and snack alternatives, and if the new product achieved that objective, the outcome was consistent with what the firm set off to accomplish with the “innovation.” However, innovations need not be restricted to the physical product. They could, for example, involve a change in how a firm prices its products. Think about the 99¢-per-track download on iTunes. Or think about Broadway’s move to dynamic pricing, which involves increasing or decreasing prices for certain seats based on week-to-week, or even day-to-day sales trends. Again, if the objective is to increase demand, or

to better capitalize on differences in consumers’ willingness to pay, then it makes sense to categorize these tactics as innovative. A second task fulfilled by innovation is to enhance the brand. By brand I mean more than the physical product or the service. I mean the host of associations that consumers conjure up in their minds when faced with the name of a company or its products. Consider the Chevy Volt, GM’s plug-in electric car. In the first 10 months of 2013, 18,782 Volts were delivered. That was 2.7% less than 19,309 delivered in the first 10 months of 2012. Has the Chevy Volt generated large sales and profits for GM and Chevrolet? No. But has the Volt, along with the other new product introductions, improved the GM brand in general and the Chevrolet brand specifically? The answer appears to be yes. For example, Chevrolet entered Interbrand’s 14th-annual ranking of the best global brands at No. 89 last year. A third task fulfilled by innovation is to create a new category. Defining a category can be tricky, so I choose to define it broadly as well as loosely. Consider, for example, Procter & Gamble’s Febreze. Prior to its introduction, eliminating odors from furniture was not a need that was easily fulfilled. And although the ultimately successful positioning of Febreze was not based on this specific benefit, consumers could meet the need with this product. The product is now used in diverse applications—for example, to deodorize the helmets of motorcyclists in Vietnam. When it was first introduced, P&G had to advertise where in the store one could find the product: “Now available in the detergent aisle.” Apple’s iPod also comes to mind. Was it the first product to meet the need of music portability? Of course not! Was it even the first hard drive– based music player? No, again. But it was the first product to tightly integrate the hardware and software experience that allowed consumers to easily and conveniently access a large selection of music while on the move. The benefit of a new category is that it can create its own product lines, spin-offs, and other enhancements. Witness the variations on Febreze now available at your local supermarket or the “i” line spawned by the iPod. There is a fourth task that innovations are sometimes called upon to fulfill—one that is beneficial for society at large. While not always central to a firm’s innovation machine, new products, services, packaging, and pricing have been created to meet the needs of “bottom of the pyramid” consumers. Examples of this include Dannon’s various projects around the world, including providing drinkable yogurt in Senegal (Dolima) and cheap yogurt in Bangladesh (Shokti Doi); Adidas’s attempt at providing €1 shoes

to Bangladeshis; and Unilever’s low-cost water filtration system in India (Pureit). The success of these projects tends to be measured by different metrics than when a firm is looking to increase demand for their products in the short run. Note that the various objectives of innovation are not mutually exclusive, along the lines of the roles of marketing articulated by Northwestern University’s Mohanbir Sawhney. Febreze was, and is, a very successful product line in the market and has a strong brand name. The iPod brought back to life a rather moribund Apple—and was successful both in the marketplace and as a brand builder. What is different across the various types of innovation above is sustainability with the passage of time. Specifically, the question is whether the introduction of Pop-Tarts with peanut butter will help sustain the sales of the product line in the same way as, say, the creation of a new category, as in the case of Febreze. This is where most of the disagreement about what innovation means seems to stem from. If one views innovation as always being of the more sustainable variety— enhancing brands and creating new categories— then applying the nomenclature to a flavor variation is not likely to be satisfactory. Yet one can argue that a firm requires innovation to fulfil a variety of the above objectives. Are “incremental” innovations required? Absolutely. Even the iPod became available as the Classic, the Nano, and the Touch in different colors, shapes, and sizes. But would it have been sufficient—for investors and consumers—for Apple to have stopped after creating those multiple versions? Perhaps not. Without evolving from the iPod to the iPhone to the iPad, Apple may not have been able to sustain its heady growth. This is where innovation has to move from being merely tactical to residing in the strategic realm of a firm. Organizations need to think of a portfolio of innovations—some incremental, some brand enhancing, some category creating or redefining, and perhaps even some societalwelfare enhancing. In the movie Moneyball, Brad Pitt’s Billy Beane exhorts his staff and players, “It’s a process. It’s a process. IT’S A PROCESS.” It is critical to establish the right culture, environment, and rewards system within an organization to help it deliver the innovations needed for success. Ultimately it does not matter how companies use the term, or how often. It is what they set out to accomplish and manage to deliver that is most relevant. This article was originally published in Capital Ideas, a publication of the University of Chicago Booth School of Business: www.chicagobooth.edu/capideas CEO MAGAZINE

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KENT STATE UNIVERSITY

INNOVATION in the Classroom and Beyond

Dean Deborah F. Spake, College of Business Administration, Kent State University

ent State's College of Business Administration is one of only 180 colleges or schools of business worldwide to achieve dual accreditation in both business and accounting from AACSB International, the global accrediting body for undergraduate, master's and doctoral degrees in business and accounting. As the second largest business college in Ohio, our accreditation is not the only draw to our programs. For more than 35 years, Kent State's College of Business Administration has offered one of the highest quality Executive MBA programs in the Unites States at a tremendous value. And, in the last ten years to meet the demands of the industry, we have customized our executive graduate program to include two specialized tracks; the Executive MBA for Corporate Professionals and the Executive MBA for Healthcare Professionals. Our executive curriculum is built around connecting theory with real world applications. We not only teach advanced business principles, but how they relate to day-to-day business practices. Kent State’s College of Business Administration is home to a diverse, innovative faculty with vast industry experience that brings a global perspective to the traditional classroom. This creates a fresh, innovative culture among our EMBA students, who then perpetuate this mindset integrating it into “their world”. Kent State EMBA alumnus, Robert Losey is a prime example. Losey graduated from Ohio Northern University in 1979 with a Bachelor of Science in Mechanical Engineering. He received his EMBA from Kent State University in 1990. Losey began working at Goodyear Atomic in 1979, transferring to the Passenger Tire Design division in 1985, where he designed tires for Chrysler, Hyundai, Mitsubishi, Toyota, Daihatsu, Suzuki, General Motors and Lexus. In 2003, Losey transferred to

the Future Technology Group, where he was the lead engineer on the Assurance Triple Tread Tires project. Since then, he has worked on the Lunar Tire, Geoply Tire and Air Maintenance Tire. Losey, a two-time recipient of Goodyear’s Inventor of the Year, has 31 patents in his name.

During Losey’s time with the EMBA program, he fondly recalls the International Business Experience course, which included traveling abroad to Europe. “Our EMBA program offers important global business opportunities that enable our executive students to experience first-hand

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the culture and practices of international businesses through corporate tours, visiting the U.S. Embassy, meeting local business leaders and the opportunity to enjoy an international culture,” said Laurie Walker, director of the College of Business Administration’s Executive MBA Program. “We have alumni around the globe that open their “corporate doors” to us providing our students with an in-depth look into businesses operating on a global level, as well as opportunities for our students to participate in collaborative international projects”. Losey’s class traveled to Europe spending three weeks visiting a wide range of industries from manufacturers to financial services. Losey and his executive classmates were able to meet with many global alumni representing corporate management at every stop.

“Learning from executives operating on an international level and the measures they utilize to prepare for global integration, the challenges they face dealing with the multiple languages and cultural differences was quite impressive. Their willingness to share their time, knowledge and experience with such openness was invaluable,” Losey said. “I remember thinking that Kent State must have some real clout to make this all happen. My experiences abroad really paid off later in my career, enabling me to be selected for an 18-month global assignment at Goodyear’s technical center in Luxembourg.” Losey’s special assignment abroad with the Advanced Products Division came three years after receiving his first patent. Losey, who now has 31 patents, created a lightweight drive-on flat tire that is exceptionally good for hydroplaning resistance.

Innovation is important no matter what career path an executive may choose to take. Pratim Datta, Ph.D.

“The drive-on tire could do it all. It was great in rain, lightweight, could be punctured and still drive plus it had a good ride. Unfortunately, the tire could never be produced,” Losey said. “It was found to be very hard to manufacture and we did not have the proper equipment to meet its specifications at that time. That was a real eyeopener for me; you really have to consider the entire innovative process and not one isolated part. Everything has to work in unison.” Innovation in Kent State’s EMBA program starts at the core and it starts with our faculty. Pratim Datta, Ph.D., is one of the professors in the program; his wealth of experience brings cuttingedge knowledge straight to the classroom. Dr. Datta is a two-time recipient of the Farris Family Research Innovation Fellowship Award. He is the Ph.D. Program Director and an Associate Professor for the College of Business Administration. Dr. Datta is ranked among the top 50 researchers internationally publishing in top-tier MIS journals. “I believe innovation is an important part of our curriculum. By pulling from my own experiences with innovation and invention, I am able to provide our EMBA students with real-world applications,” Dr. Datta said. “Innovation is important no matter what career path an executive may choose to take. Innovative curriculum is a natural extension of what our EMBA programs have to offer; it takes our executive students to the next level in their career as well as life lessons.” Dr. Datta has more than 11 inventions and patent applications. His most recent invention is his development of a new program he calls VARS, Voter Identification and Recommender System. Using the program, voters can cast ballots in their local elections from anywhere in the world using personal computers or smart phones. “My process for innovation allows me to speak on my experiences, providing my students with knowledge and giving them advice that will help them in the corporate world,” Dr. Datta said. As we integrate innovation into our EMBA program we continue to address the changes in our global business environment and the needs of executives. Our goal is to ensure that Kent State’s Executive MBA programs continue to evolve, growing in purpose and demand and with faculty like Dr. Datta, and alumni like Bob Losey the future is indeed very bright.

Biography Ø Dr Deborah F. Spake is Dean of the College of Business Administration at Kent State University, Ohio.

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WORKPLACE HAPPINESS

UNCOMMON WAYS to Drive

HAPPINESS in the Workplace Engagement is the holy grail of workplace satisfaction. Here are three new ways to think about your employees’ happiness. Mark C. Crowley

y the late 1990s, the number of people diagnosed with depression in the U.S. had increased by nearly 1000 per cent in just a half-century according to the World Health Organization. Believing that psychological research had been too narrowly focused on finding new treatments for human despair – and not on a cure – University of Pennsylvania professor, Martin Seligman, reframed the problem entirely, and challenged academics across the country to begin exploring the causes of human wellbeing. “What are the enabling conditions of life that help people achieve greater happiness and thrive in their lives,” he pushed his colleagues to discover. “What makes people flourish?” It was in this inspired moment that Seligman gave birth to “positive psychology,” the scientific study of optimal human functioning. And over the past 15 years, extensive positive psychology research has proven to have a remarkable impact on lifting people out of depression – exactly what Seligman had hoped. But many of its discoveries have produced an additional, and likely unintended, benefit. They provide profound new clarity on what influences workers (human beings) to become the most enthusiastic and productive in their jobs. What Seligman and thousands of other academic researchers collectively discovered is that people turn out to be far more creative, engaged, and successful when their mindsets are positive – when they feel “happy.” “Happiness” is, of course, a loaded word today, and Seligman is clear in distinguishing that its true meaning extends well beyond transitory

feelings of pleasure. In positive psychology’s more complex definition, “happiness” includes experiences of positive emotions, combined with deeper feelings of engagement and meaning: Positive Emotions: What we feel. Pleasure, joy and comfort. Engagement: The flow that comes from the frequent use of one’s greatest strengths and talents while doing gratifying work. Meaning: Having strong connections with other people, personal growth, and feelings of achievement. Seligman emphasizes that people definitely need frequent experiences of positive emotions in order to thrive in the here and now, but that sustainable happiness only is attained when we’re certain our life activities matter and are leading to personal growth. Simply put, we need all three to be “happy.” According to Shawn Achor, positive psychology expert and New York Times bestselling author of The Happiness Advantage, “data now abounds showing that happy workers produce higher sales, perform better in leadership, and earn higher job performance ratings and pay. Study after study shows that feelings of happiness lead people to excel in their jobs.” I recently had the opportunity to meet with Achor and asked him to share some of the best ways workplace managers can directly influence greater happiness in their teams. Here are three leadership practices I found to be the most uncommon and useful:

1. Actively Encourage Social Interaction “Countless studies have found that social relationships are the best guarantee of heightened well-being and lowered stress,” Achor told me, “and both are an antidote for depression and a prescription for high performance.” While it’s all too common in business for bosses to spot a few employees chatting it up in the halls and instinctively conclude that they’re dodging work, the research proves that the better people feel about workplace relationships, the more effective they become. When surveying employee engagement all over the world, Gallup routinely asks workers, “Do you have a supervisor or someone at work who cares about you?” While many CEOs have asked Gallup to remove this question with the belief that it’s inherently soft and un-useful, Gallup discovered that people who answered “yes” to it were more productive, contributed more to profits, and were significantly more likely to remain with the firm. During the early days of the financial meltdown, financial services firm, UBS, elected to eliminate the beer carts that circulated on the market floor every Friday afternoon. Achor told me that there was one manager who noticed an immediate and negative impact on his team’s spirits tied to this one cost-cutting move – and he decided to dip into his pocket to bring it back. As the economic crisis wore on, his team proved to be tighter, stronger, and less inclined to leave for a higher paying job. “I’m a professional investor,” the manager said, “and this was the best investment I ever made.” Said Achor, “that simple act of paying for refreshments showed that he cared about his team’s level of happiness – not just their level of performance. And we now know those two things are directly linked.”

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WORKPLACE HAPPINESS

2. Hire People With Heart

3. Remember the Losada Ratio

Yale Psychologist, Amy Wrzesniewski, interviewed hundreds of workers in all professions and found that people have one of three work “orientations” or mindsets:

University of North Carolina psychologist, Barbara Frederickson, took a team of researchers into 60 companies and transcribed every word used in their business meetings. Afterwards, they parsed every sentence for positive and negative words, and took a simple ratio of the positive-to-negative statements. What they discovered was that the companies with the greatest financial performance had a better than 3:1 ratio for positive communication. They additionally found that a ratio of 6:1 was characteristic of teams with consistently extraordinary achievement.

1. They see work as being a “job,” or a chore, and use the paycheck as its reward. 2. They approach work as a “career” and work to advance and succeed. 3. They see their work as a “calling” and find work fulfilling because it gives them feelings of meaning and purpose. Wrzesniewski shows that people with a calling will work harder and longer simply because their jobs are rewarding. Consequently, Achor’s advice to hiring managers is to ask people, “Where do you see yourself in ten years?” Their answer will reveal how much of their heart they’ll likely bring to their work.

Achor’s advice: “Go out of your way to build employee strengths instead of routinely correcting weaknesses. When you dip below the Losada line, performance quickly suffers.” The idea that it’s become the job of organizations to foster employee happiness

People with a calling will work harder and longer simply because their jobs are rewarding.

is unquestionably one that still rankles many in business. Many of us can’t get beyond the traditional belief that happy workers produce unhappy shareholders. But Achor offers this advice to the slow-toadapt and openly sceptical: “We’re hitting a tipping point where we realize we can no longer increase the number of hours and stress loads that we’re putting on people to raise their level of productivity. “What we’re finding is that if you want to see what people are capable of achieving, it requires new types of leadership – and new definitions of how we pursue happiness in organizations.”

Biography Ø 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’s also a frequent contributor to Fast Company Magazine. Connect with Mark through his website: www.markccrowley.com, Facebook: www. Facebook.com/leadfromtheheart or Twitter: @markccrowley.

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MEET THE DEAN

Meet the

DEAN

Greg Carnes, University of North Alabama

Please tell us about your background. I am the Dean of the College of Business at

What is your vision for the University of North Alabama College of Business?

University of North Alabama (UNA). In 2007 I was named the Raburn Eminent Scholar of

• To offer high quality graduate and

Accounting and also MBA Program Director. In

undergraduate programs and curricula

the past I served as President of the Accounting

through flexible delivery platforms that

Program Leadership Group, President-Elect of

prepare students for a dynamic global

the Federation of Schools of Accountancy, and Secretary of the American Taxation Association.

business environment. • To generate and share knowledge capital,

Today I am Chair of the Education Committee of

both with the region and the global

the Alabama Society of CPAs and President of the

community, through innovative events,

North Alabama ASCPA chapter. I am contributing author on South-Western Federal Taxation:

experiential learning labs, and research. • To develop personnel and utilize tools

Individual Income Taxes and Wiley/CPA Excel

necessary for optimal enrollment, high

and have published approximately 30 articles

quality student experiences, and successful

in academic and professional journals. Before

careers, through efficient and effective

UNA I was chair for six years of the Department of Accountancy at Northern Illinois University

operational processes. • To engage external constituencies to

which was ranked in the top 20 accounting

build collaborative networks that promote

programs in the country every year during my

mutual value.

tenure. I was also Dean of the College of Business at Lipscomb University and began my academic

We intend to be the MBA program of choice

career at Louisiana State University. My Ph.D.

for those seeking a high quality, convenient,

degree is from Georgia State University.

cost-effective program.

While our faculty produce excellent research, our key mission is teaching and mentoring our students to prepare them for successful careers. 30

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MEET THE DEAN

What would you say are the schoolâ&#x20AC;&#x2122;s key strengths? UNAâ&#x20AC;&#x2122;s strong high quality academics combined with a small student to faculty ratio builds true relationships that last well beyond graduation. While our faculty produce excellent research, our key mission is teaching and mentoring our students to prepare them for successful careers. Our program is ranked #3 in the nation by www.eduseeq.com for 2014 Most Affordable Online MBA Programs for Value, #10 in nation by GetEducated.com for Best Affordable Regionally Accredited MBA Online Programs, and is recognized in the 2014 Top 50 Most Affordable MBAs from TopManagementDegrees.com.

What developments and key trends do you see emerging in the 2015 MBA landscape? Technology will continue to transform the delivery of higher education, especially in the MBA marketplace. Students are demanding customized programs that meet their needs and are convenient. While a broad business core is necessary for a strong MBA program, students also need specialized training in their field of choice. Students will also continue to focus on return on investment in choosing a program, and expect a global lens for curriculum delivery. How will the University of North Alabama respond to these developments? While UNA is already ranked highly for return on investment, our ROI will continue to increase as we roll out new specializations in project management, human resource management, and economic development. We will continue to use the latest technology advances to create an excellent learning environment both online and in the classroom. Many executives want to brush-up on their skills without committing the time to a degree. We plan to offer short online courses that will lead to a certificate or badge. We will continue to offer our MBA in Asia through a cohort model and integrate the experiences of our domestic and Asian students.

How can a student get the most from their University of North Alabama MBA experience? At UNA we focus on the total student learning experience. Students will expand their knowledge of business principles but will also develop skills and competencies that separate them from others. To maximize their experience students develop a network with our faculty and other students to create a learning team that will last long past their graduation date. CEO MAGAZINE

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MEET THE DEAN

Every Dean has a wish list. What are your top three ‘wants’ for areas of change? For change I am focusing on three areas –

Technology is forcing Deans to rethink how education is developed and delivered.

brand recognition, new concentrations that focus on skill areas that are in demand, and

or eliminated, looking for the best choice is a

custom executive curriculum. We are working

priority for many who want an MBA to advance

How do you ensure you equip students with this broad perspective?

to expand the brand of UNA MBA beyond our

their careers.

UNA incorporates international examples into

traditional area. We are the 3rd largest MBA

each course so that the student experiences how work and decisions can impact across the

growing in a market that is declining in most

How is the University of North Alabama positioned to meet these demands?

areas, indicating that we are delivering strong

Our faculty meets regularly to improve our

have taught and/or worked in international

value to students.

MBA program to insure that we offer a high

communities so they are equipped to discuss

quality experience in an efficient manner.

their first-hand experiences with students. We

What do you feel are the biggest challenges facing the Deans of business schools?

We also meet regularly with an industry

are currently evaluating a travel trip to Asia for

advisory council that provides great feedback

domestic-based students to coincide with our

on program improvement. Our total cost is

teaching of Asia Cohorts. The domestic-based

Technology is forcing Deans to rethink how

less than half the national average which is

students could take a course while in Asia.

education is developed and delivered. This

commendable as UNA is a nationally ranked

challenge presents opportunities for business

program. Keeping costs in-line is a key strategy

schools to innovate in the way that many

for UNA. Just as with other product lines, the

business segments have already experienced.

most expensive product is rarely the best.

program in Alabama and our MBA program is

Budget constraints are significant for business

How do you maintain a balance between cross-functional expertise and social responsibility in your programmes? Social responsibility is another growing trend that employers expect their employees

streams to fund their programs. Faculty

How do you balance the notion of ‘students as customers’ with the MBA curriculum?

recruiting remains very competitive. The

UNA’s MBA is over 35 years old and our

the environment for communications. All

most important thing we do is hire excellent

online program is more than 10 years old. Our

companies must now consider how each action

faculty but finding the right fit takes much

faculty has deep experience in developing and

will be received by the public. It is incumbent

effort and persistence.

delivering the MBA curriculum in a manner

on those of us leading MBA programs to

that meets the students’ needs but can be

assure that our students are prepared to lead

How do you plan to tackle these?

completed by a busy professional with many

in a socially responsible manner. We do not see

To nurture our MBA revenue stream UNA has

time demands. It is a difficult but achievable

this as a balancing act, but rather as teaching

increased our focus on digital marketing and

task. The student initially comes to us as a

business disciples through a lens that includes

organic search engine optimization. We have

customer, but they leave our program as a

integrity, ethics, and social responsibility.

also been increasing our communication

valued member of the UNA family prepared

channels by adding a monthly e-newsletter

for career success.

schools as states continue to slash budgets. Deans must continue to nurture other revenue

to understand to be profitable corporate citizens. The growth of social media changed

It’s neck-on-the-line time; list three things that CEO Magazine readers can expect from the University of North Alabama College of

and a social media site for UNA alums. These

Business over the next 12 months.

engine rankings. We have also combined our

What are the key components of a successful MBA student cohort?

increased marketing and branding efforts

A strong student cohort is diverse in terms of

world needs new leaders who can build teams

with a timely customer service follow-up

ethnicity, gender, age, academic background,

that provide outstanding results without being

program that has increased our enrollment.

and industry. Students learn from each other

encumbered by bureaucratic thinking. UNA

Our branding efforts also facilitate hiring

and in the MBA program they should learn

College of Business will be expanding MBA

excellent faculty who want to be part of an

that the bringing together diverse minds to

concentrations, student business contest

innovative business school.

solve problems is the best path to success

experiences, and offering an online mini-MBA.

and innovation.

All these programs will develop leaders to meet

two steps can have great impact on the search

globe. Additionally, most of our MBA faculty

We know that today’s collaborative business

What do you feel executives and high-potentials expect from an MBA programme?

What does having a ‘global view’ mean to you?

focuses on quality teaching delivered in a

Students expect to be challenged but

A global view is considering the global

student’s needs.

not burdened with busy work that is not

implication of every business decision. The

productive. They also want to be recognized

new competitor that crushes your business

as an individual learner with specific goals

may be on the other side of the world, but

and needs, even though many are online and

your best customers and suppliers may also

physically not on a campus. Students want a

be in a different country. Students will work at

total experience that includes application of

companies that are part of the world economy.

learning. They are also seeking convenient and

The more we can help students think about

cost-effective programs. As many company paid

the global implications of their decisions,

tuition reimbursement programs are cut-back

the better their results will be.

these challenges. UNA College of Business convenient format that is timely to the

Biography Ø Dr Gregory Carnes is Dean of the College of Business and Raburn Eminent Scholar of Accounting at the University of North Alabama.

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LEMNISCAAT SCHOOL OF MANAGEMENT

The New World for

Executive MBAs Steef Peters The world for Executive MBAs is changing

accordingly. We assume that our education,

highly-educated people, at all ages. A structured

We are working for longer. In the past, a typical

on average, may continue until we are 24 years

unemployment of more than 10 per cent for young

working life was around 35 years. Now, this

old, and will certainly stop around 48. We also

and older professionals with a university degree

is rapidly changing to 50 or even 60 years.

assume that management is a profession that

is unacceptable.

This means that many of us are seeing two

is independent of an organisation, and that

innovation cycles, for example, the transition

the skills required of managers are the same,

from the introduction of a black and white

irrelevant of the purpose of the organisation. This

What are the major effects on the Executive MBA?

television to streaming on a smartphone. This

is not the case; we have to learn continuously to

The expectation that a higher salary comes

creates different demands for managers and

be able to move from one job to another.

with the degree. This is not always the case

learn, resulting in the unemployment of even

organisations, and a mismatch between what

We have started to learn how we learn. As a

anymore, as some organisations do not want

we learn on Executive MBA programmes and

result we have discovered that the current system

to invest in managers for two or more years

what organisations need.

of teaching in front of a class, where all the

when it is uncertain whether the organisation

students have to come together at a specific place

will still exist. As a result, salary or position

we originally expected organisations to last for

and time is not the most cost effective. Digital

in an organisation is much more dependent

50 or even 100 years, we now predict the lifetime

content is increasingly free; it is the quality

on targets and related abilities than on a

of an organisation to last approximately 10 years

of the exams and the learned ability to apply

particular title or qualification.

in 2020. This will have a major effect on the

knowledge that is determining the reputation of

mobility of managers, as they will potentially

an institution. In keeping the existing structure

in a thesis. This does not fulfil the demands of

have to cope with more than five jobs in their

and content we are in fact increasing the gap

organisations that are searching for knowledge

lives, each demanding specific abilities.

between what organisations need and what we

and solutions immediately. Knowledge is

Organisations lifecycles are shorter. Where

Our learning environment is not built

Offering a fixed structure of modules ending

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LEMNISCAAT SCHOOL OF MANAGEMENT

available digitally, and so there needs to be

Based on this information, we worked

be aware, however, that Lemniscaat School

a structure where this information can be

with the HEMA Academy, an online learning

of Management is a network organisation

used quickly to find and implement solutions.

environment, to create bite-sized lectures of

without any overheads or personnel. We

Programmes should provide a balance between

about 5 minutes, along with links to digitally

work on a project basis according to a fixed

offering knowledge and offering support on how

available lectures and articles which explain

programme structure with an extensive

to apply this knowledge to particular situations.

key theories. This allows students to access

network of professors.

The return on investment of an EMBA is no

knowledge at different levels, when and where

We are currently using this model for

longer as clear. This is true for the organisation,

they want. If a student is particularly interested

our Executive MBA in Water Management.

and for the student. Of course, there is still the

in a topic, they can take a short exam at the end

Wetsus in Leeuwarden, Netherlands, is one

argument of networking. However, this was a

to see what they learned, and to show us how

of the top institutes in water management.

much stronger argument before the advent of

much they have developed. The cost of creating

However, they understand that even a PhD is

social media. We can now have contact, in a

these bite-sized lectures is very low when

not always enough for a successful career.

split second, with many more people than the

compared to delivering whole lectures on the

This is especially true later on, when one may

30 students in a particular class.

management theory each year, and at a high

need particular management skills. Wetsus

cost for the teaching professor.

looks for a mixture of vocational training and

The Lemniscaat School of Management Executive MBA

Each module comes with a set of these mini

knowledge building for engineers, along with

lectures, and once a student has completed all

the teaching of management skills, in order to

At Lemniscaat School of Management, we have

of the related tests they can apply for the face-

offer students the best career opportunities.

anticipated these changes by splitting the

to-face master class, where the application of

Lemniscaat School of Management works with

acquisition and application of knowledge in our

the acquired knowledge is tackled. This is a

Wetsus to use the Executive MBA modules for

Executive MBA, and are using new techniques

group process where the teacher can test the

this purpose, and to use the master classes to

to build social structures for our students.

knowledge and its application in cases which

apply management knowledge to the topic of

Whilst we can see that the theory behind

are familiar to the student. In order to gain a

water management. As a result, the Executive

management and organisational development

certificate for the module the student must

MBA in Water Management is not only an

is changing over time, it isn’t happening

write a paper and present it to the teacher,

excellent programme for those professionals

quickly. This means that, across programmes

thus allowing us to measure the quality of

working in the water management sector,

and institutions, professors are using the same

the individual student again. This creates

but also for PhD students who are going

theory during their classes. However, much of

a very cost effective set-up, allowing us to

to work in the field. In fact, a major driver

this theory is available digitally, and for free. So

offer an Executive MBA module for less than

of Lemniscaat School of Management is to

why should we spend money to repeat the very

€1,500 per person, with a breakeven point

provide these types of programmes. We want

same information?

at just six students per module. One has to

to offer good management knowledge to skilled people, who then become managers

We have to learn continuously to be able to move from one job to another.

as a result of their knowledge in a specific sector, such as water management or human resource development.

Biography Ø Steef Peters is Director of the Lemniscaat School of Management in The Netherlands.

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WORKPLACE ENGAGEMENT

Why Being ENGAGED at Work isn’t as Simple as “BEING HAPPY” The CEO of Gallup, a company whose studies on employee engagement are often cited, on why the issue comes down to more than just perks. Mark C. Crowley

ast December, Gallup researchers stunned the business world with the revelation that just three in 10 American workers are engaged in their jobs and willing to do all they can to help their bosses and organizations succeed. In the nine months since, a hyper-focus on restoring engagement has become a fully-fledged movement in the U.S., with many companies committing themselves to boosting employee happiness as their chosen remedy. But like a doctor who’s made a dire diagnosis and then isn’t consulted for proper treatment, Gallup has grown alarmed that the pursuit of happiness so many leaders have embraced is a tonic that will not help businesses get better. I recently sat down with Jim Clifton, Gallup’s CEO for the past 26 years, and asked him to provide his prescription for bringing American workplaces back to full health. Leveraging insight gained from Gallup’s decades-long global engagement and wellbeing studies, not to mention his own work with hundreds of companies across the world, he offered this often contrarian advice:

We shouldn’t be trying to make workers happy “The idea of trying to make people happy at work is terrible,” Clifton told me emphatically. While admiring companies like Zappos, which intentionally foster positive workplaces, he nevertheless believes a day-to-day focus on the fun aspects of happiness greatly miss the mark. This is because Gallup’s research shows that how 36

a person feels about the work they do every day has the greatest impact on engagement by far. “What companies will inevitably find is that the only way to make a person happy is to give them a job that matches well to their strengths, a boss who cares about their development, and a mission that gives them feelings of purpose,” Clifton said. “The belief that something gets better when you come and do your job, that’s as happy as you can be.” Recent studies in positive psychology help to validate this and show that true contentment is tied to human flourishing. According to Shawn Achor, author of The Happiness Advantage, “happiness is the experience of positive feelings of pleasure combined with deeper feelings of meaning and purpose.” Happiness is the joy we feel when we’re striving to fulfill our potential and accomplishing something significant.

Free lunches don’t drive achievement “Free lunches and snacks have little direct impact on human performance,” Clifton insists, “and have the real potential of being destructive to achievement.” On a recent vacation to Yellowstone National Park, Clifton noticed signs saying, “Do Not Feed the Bears,” almost everywhere he went. Concerned that all these postings were an indication that bears were mauling campers in unusual numbers, he sought out a park ranger for explanation. “Those signs aren’t for your protection,” the ranger told him, “they’re here to protect the bears. What most people don’t understand is that when you feed a bear a peanut butter and

jelly sandwich, they’ll never dig for roots again. Park visitors think all they’re doing is giving the bear a treat, but they end up ruining all those great animal’s lives.” Clifton believes we need similar signs in a lot of American companies. “Rather than looking for all the ways that actualize people, they’re focused on free food. And that’s not only what people don’t want—it’s what’s going to spoil them. The ultimate act in workplace leadership is human development, not a focus on happiness or entertainment.”

Perks aren’t much better at driving engagement It’s perhaps a surprise that Clifton is not a fan of the “Best Places to Work” rankings annually published in Fortune magazine. But it’s because he believes we too often herald organizations for being generous with perks when the spotlight should be placed on the companies who make more meaningful investments in growing their people. “Many companies, like Google, offer perks because they create conveniences for employees,” says Clifton, “but there’s no cause and effect in terms of engagement and high performance. I think perks make a little bit of difference to people, but the benefit is granular compared to a focus on individual expansion.” Clifton, nevertheless, strongly advocates that organizations provide employees with healthcare and on-site day care. “Offering these is not only the right thing to do; both greatly enhance wellbeing, which is known to have a direct and positive impact on the bottom line.”

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WORKPLACE ENGAGEMENT

Engagement is driven by what many CEOs still believe are soft practices “What businesses really want,” says Clifton, “is for employees to bring their initiative, commitment, and productivity to their jobs; but we can’t find any evidence that pay plays much if any role in driving this. The true connections are what many business leaders instinctively consider soft practices. But it’s almost as if the softer you go, the stronger the signal,” he insisted. “The softer you go, the stronger the correlation.” All of the questions that Gallup asks workers about their engagement, Clifton told me, “are really about a human wanting to develop, maximize their strengths, make a meaningful contribution, and feel valued. And we know that engagement happens automatically when these deeper needs get met.” But traditional beliefs about how best to motivate human beings continue to be the key reason why 70 per cent of the working population is disengaged.

“The truth is many CEOs have been repelled by this idea that management must incorporate more heart to be successful,” Clifton says. “But now many are saying, ‘come a little bit closer, my dear.’ And this is because CEOs are desperate to win. They’re beginning to recognize that an authentically caring culture provides a clear and sustainable competitive advantage.”

So goes the manager, so goes engagement When I asked Clifton where organizations should start if their objective is to build deep and lasting engagement across their enterprises, he was direct and unambiguous. “Going forward, we must insist on hiring caring managers. Managers must be driven, love productivity, profitability, and competing,” he added, “but they must also have an inclination to maximize the potential of every person on their team.”

Gallup researchers stunned the business world with the revelation that just three in 10 American workers are engaged in their jobs.

Gallup has discovered that organizations too often make the mistake of promoting people into managerial positions simply because they were most senior, or they’d previously been star individual performers. But their research shows that unimaginable success results when companies demonstrate greater discipline – and courage – by selecting people who have the proven motivation of making a difference in the lives of others, not just their own. “The final question companies should ask each time they’re considering a managerial candidate is this: Do they offer leadership or do they need leadership? It’s a big difference,” Clifton says.

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FRAUNHOFER

Fraunhofer We Invent the Future! Getting to know the Fraunhofer Academy

he Fraunhofer Gesellschaft [society] has built its success on applied research, spanning some 60 years, and today we are Europe's largest organisation for applied research, with 17,000 employees and revenues of €16bn. Areas of research, geared to the needs of people:      

Healthcare Security Communication Mobility Energy Environment

At the Fraunhofer Academy – established by the Fraunhofer Gesellschaft – we understand that it takes real expertise to channel the innovative potential of research findings into a company’s day-to-day operations, which is why we offer continuing education and advanced training programmes. By working with an extensive network of prestigious educational partners, which is growing all the time, we are able to ensure that specialists and managers have the qualifications they need. By offering training on a part-time basis, the aforementioned specialists and managers are able to transfer knowledge gleaned from Fraunhofer research projects to their

respective companies directly. In this context, the “knowledge generators” take on the additional role of “knowledge communicators”. In addition to academic credentials, the Academy offers professional certificate courses, which make up the second core component of the overall training programme. These transform industry’s current requirements for modern production processes into hands-on training courses. As the importance of certified, expert validation increases in key industry sectors, so too does the demand for recognised part-time qualifications in the advanced training sector. The third component of the Academy’s training programme comprises seminars held over two or more days which provide practical, evidence-based know-how that can be directly applied to one’s everyday work. Our aim is to create a balance, teaching a mix of business and technology, underpinned by an entrepreneurial dynamic that will become more and more prevalent in our courses as we go forward.

Fraunhofer Courses     

Technology and Innovation Energy and sustainability Logistics and production Manufacturing and testing technology Information and communication

Our aim is to create a balance, teaching a mix of business and technology, underpinned by an entrepreneurial dynamic that will become more and more prevalent in our courses as we go forward. 38

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FRAUNHOFER

Programme Benefits for Students  Ongoing professional development  Skills and tools which can be immediately applied in the workplace  Minimal classroom-based components for increased work/life balance and learning  Up-to-date Fraunhofer research knowledge integrated into business practice  New career opportunities with recognised qualifications  Advanced access to new technologies  Tools to develop new products, processes and services  Extensive networking opportunities through the Fraunhofer-Gesellschaft networks

Maximising ROI for Companies and Employees When working with a company, we tailor the content of our training courses to meet the specific needs of the company. As result, employees benefit from a uniform understanding of the topics the organisation considers most important, and the company benefits from highly focused and targeted training. Our approach is one of customised training and development, which we consider to be the flexible path to qualifications.

Biography Ø Dr Roman Götter is the Managing Director of the Fraunhofer Academy.

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THE GEORGIA WEBMBA

An Online MBA

IN AN APPLIED ENVIRONMENT Alexandra Skinner speaks to the Georgia WebMBA’s Faye McIntyre

Talking Points Has the online MBA market reached saturation point, or is there still a place for high quality programme providers?

How can online MBA providers replicate the feeling of community and the networking opportunities attached to an on-campus programme?

Do you feel that job applicants with online degrees are viewed as favourably by employers and HR professionals as those from traditional programmes?

In the Georgia WebMBA, we start with a

The employers and HR professionals that I

No, I do not think the market has reached

weekend orientation that provides students

speak with are more interested in the university

saturation, and this is evidenced by the number

the opportunity to interact with one another

offering the degree than the mode of delivery.

of traditional universities rolling out online

face-to-face. The students will then go on

With the Georgia WebMBA, for instance, our

programmes and attracting students. With

to work in small teams with the same

online students receive the same degree as

the increasingly mobile society, employees

teammates throughout the programme,

our on-campus students. The diploma does not

who want to continue their education while

supported by phone calls, emails,

specify if students attended in person, online

travelling for business will likely increase the

chat room activity and other available

or in a hybrid programme that combines both

demand for online graduate programmes for

technologies, which promote a feeling of

delivery modes.

many years to come.

interconnectedness. There are also plenty of

students can attend on-campus networking

In your opinion, what are the top three advantages attached to an online MBA over a traditional programme?

events, lecture series and other activites

Flexibility is a major advantage. Many of our

avaialble to those in the on-campus MBA

students are working professionals, so they

If this were the case, we would not have any

programme. It is not about reading the

simply do not have the time to come to campus

students! Good quality programmes are able

material, taking the test and then you’re

and sit in a classroom several nights a week

to maintain their student bodies because they

done. That is what one might consider a

or on the weekend. The online environment

provide value-added for multiple parties –

correspondence course. We strive to make

allows qualified students, who otherwise

from students enrolling in the programmes to

the programme and courses as relevant as

would not have the opportunity, to continue

companies hiring them and the broader society

possible to help our students succeed.

their education.

– creating a more highly educated population.

We aim to meet students wherever they

The second key advantage is diversity of

Unlike for-profit companies, both public and

are in their professional or personal lives,

the students in the programme. There are

private universities have an education mission,

and expose them to current market/business

no limitations geographically in terms of the

not a profit mission.

practices and trends.

students we can attract, be that domestically

opportunities to connect with the class as a

How do you respond to the detractors that claim online MBAs are only of value to the schools and private companies that market them?

whole. Although not required, online MBA

or internationally.

The online environment allows qualified students, who otherwise would not have the opportunity, to continue their education. 40

A third advantage to an online MBA is that it matches the work environment of the 21st Century, where companies conduct business with diverse partners who may be in other parts of the country or the world.

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THE GEORGIA WEBMBA

What’s in a Name? To what extent does brand name recognition open doors and influence future career prospects and compensation? There are of course certain brand names that will always be recognisable and carry a premium, which is true in any industry, and education is no exception. The Georgia WebMBA has a strong reputation for quality in the market and, as result, students are attracted to the programme and a number of employers regularly send their employees to us.

If we assume that name brand recognition commands a significant premium in the workplace, we can also safely assume it comes at a price. Given the competitive pricing attached to most online MBAs, where do you stand on ROI? The Georgia WebMBA is competitvely priced and has received a ‘Best Value’ designation from GetEducated.com for many years. In addition, our graduates tell us that the programme is extremely good value for money, and this is supported by the success they achieve postMBA. Many graduates of the programme receive promotions, pay increases and new jobs.

Admissions Certain quarters maintain that where online MBAs are concerned, admission is far more relaxed. What are your thoughts in this connection? That is an inaccurate perception for many programmes. The admission process for most universities is an online process for undergradautes, graduates, on-campus and online programmes. In most cases, the qualifications required for admission to an online MBA are the same as those expected from an on-campus programme – in some cases applicants to online programmes are held to a higher standard. The Georgia WebMBA adds an additonal work experience qualification beyond those required for on-campus students.

What should applicants expect and/or prepare for when applying to an online MBA provider? Applicants should do their due diligence: analyse the programme, research the university offering the degree, examine the curriculum, and consider the faculty. Price is always going to be a consideration, but as with any purchase value is key. Anything one would normally consider when assessing a traditional MBA should be considered in evaluating an online MBA. CEO MAGAZINE

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STUDENT PROFILE Why did you choose Richards College of Business at UWG to receive your WebMBA? UVVG and the Richards College of Business came highly recommended in several publications related to graduate programs. RCOB garners very high marks in student satisfaction, flexibility, staff competency and affordability. I also noted that the strength of the alumni network was formidable. The staff was extremely accommodating and supportive and I felt their personalities, attitudes and focus on students and academics were a reflection of the school as well as the program.

mainstream these days. As our numbers continue to grow, we are focused on meeting the needs of our students while providing

Students enrolled in online programmes don’t have the advantage of rubbing shoulders with on-campus recruiters during social events or dropping in to have their resumes reviewed at a career services facility. How do you tackle this in an online environment?

them a high quality education. Evaluations and personal feedback continue to make the online experience better and more valuable for different constituents of students.

said, career services are available to students

Given the lack of corporate funding available to MBA applicants, price matters more than ever. As applicants increasingly look to smart and affordable options, what impact will this have on online MBA application volumes going forward?

through one-on-one appointments, recruiting

Price is always a consideration when

fairs, and networking events. Everything we

corporations reduce the amount of money they

offer our on-campus students is made available

are willing to reimburse. It is very easy when

Where do you see yourself when you are done with your WebMBA? I graduated in April of 2014 at the conclusion of the spring 2014 semester. I realized the benefit of my MBA before graduating as I was recently promoted to Assistant Vice President, Growth Platforms – AT&T Business Solutions. This promotion would not have been possible without the MBA I am receiving from UWG Richards College of Business. The MBA also directly impacted the decision by the AT&T executive leadership team to select me to participate in the 2014 class of AT&T’s exclusive General Manager Accelerated Development Program (GM ADP). This robust opportunity, which is reserved for fewer than 40 general managers (out of the population of 7,000 GMs) across AT&T each year, includes developmental activities across three broad areas: Education, Experience, and Exposure. The MBA and the experience of the program have prepared me for an entirely new dimension in my career. I am a more skilled manager, a more effective leader and a much better business person (Financial acumen, decision analysis, strategy, etc.). I see myself now equipped with the necessary tools and experiences to continue to evolve as a leader within AT&T and to develop my people and reach for executive roles with higher levels of exposure and responsibility.

to our online students.

the company is paying for the programme to

What is the one word that describes you, the program and your future? Ascending.

Typically, schools offering an online MBA option alongside their traditional MBA programme often mirror the curriculum, faculty, and admissions criteria employed by the latter. Therefore, are the aforementioned misgivings born out of a lack of understanding?

Jarrod S Barnes, Assistant Vice President, Growth Platforms AT&T Services, Inc. Dallas, TX.

I am a more skilled manager, a more effective leader and a much better business person. 42

Student Support – Behind the Technology

Most of our online MBAs are working professionals, therefore, the requirement for career services is not in high demand. That

not worry about price as much. However, when

High-end production values, state-ofthe-art video conferencing technology, and internet simulations are great, but what can students expect, over and above the technology?

it’s coming out of one’s personal account,

Over and above technology, students should

graduate programmes just as they are for

expect some type of personal connection.

undergraduate programmes.

students become very focused on the cost/ benefit. Financial aid is also available. Student loans are certainly less preferred than employer reimbursement, but they are available for

We use phone calls to connect with students other communication tools but, essentially,

What does the future hold for the online MBA market and the Georgia WebMBA?

any kind of conversation, regardless of how it

We will continue to innovate, not just from

takes place, will help to build that connection

a technology standpoint, but also in terms

with the student. It is important to maintain

of what we are doing in the classroom and

a human contact as much as possible, even

through the development of our faculty. This

when the course work is mainly online. Great

will ensure we are staying competitive while

programmes ensure those connections are

also maintaining a strong return on investment,

happening. Within the Georgia WebMBA, we

which we know is so important to our students.

make those connections early on and continue

In the future we do anticipate more competition

to do so throughout the programme. This in turn

as an increasing number of traditional campus-

facilitates important feedback which allows us

based programmes are moving online as a

to constantly enhance the learning experience

result of student demand.

which, while low-tech, work. Naturally, we use

for our students, whether that be a change in curriculum, process or faculty.

The Online MBA Market, Today and Tomorrow

One of the things we are seeing is that many of the students who apply to our programme are former undergraduates who come back to us for an online MBA, regardless of where they are now. So that name brand recognition we pointed to earlier may also become more

It is hard to pinpoint exactly why some may have doubts. Some people are traditionalists and simply like being in a traditional classroom setting. It may be hard for them to try a new method of educational delivery! Online MBAs

important as competition increases.

Biography Ø Faye S. McIntyre, Ph.D. is Dean and Sewell Chair of Private Enterprise, Richards College of Business, University of West Georgia. The Georgia WebMBA® is offered by University of West Georgia, Columbus State University, Georgia College & State University, Georgia Southern University, Kennesaw State University and Valdosta State University.

are no longer a new thing, and are relatively

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GROWTH in Accessibility of

AACSB-Accredited Online Degrees Colin Nelson

uch has been said regarding management education offered online, including in the archives of our own blog. While it is certainly very much up for debate whether MOOCs will all take over instruction of basic classes, or if virtual campuses will come to replace brick-and-mortar, the one thing that no one can deny is that online education is increasing in popularity and availability (see graph below). 497 AACSB-accredited schools, representing 39 countries and territories worldwide, participated in each of the last five annual BSQ surveys. Figure 1 (above) shows the number of these schools that reported offering one or more of their degree programs, at any level, in a fully online delivery format has grown by nearly 36 per cent over the past five years. Obviously, much of that growth comes at the bachelor’s and specialized master’s levels, while the gains in numbers of MBA programs offered fully online were more modest. One notable exception to this trend is online doctoral programs. As of this writing, there is only one AACSB-accredited school that offers

a fully online doctoral program, namely the University of Liverpool in the UK. (It isn’t shown in Figure 1 above because Liverpool was not part of the controlled set of schools.) There are more AACSB-accredited schools offering blended/ hybrid or distance-learning doctoral programs, so it may be that the future will soon bring more doctoral programs offered fully online. Interestingly, the regional breakdown of which schools offer their programs in the fully online format is far from even. Although AACSB-accredited schools in Northern America made up 83.5 per cent of the controlled set represented here, they consistently made up between 92 to 98 per cent of those who reported offering fully online MBA or specialist master’s programs, and 100 per cent of those offering fully online bachelor’s programs. By contrast, all respondents from Europe, Latin America, and Oceania that reported fully online programs at any level reported offering online MBAs, while the lone Asian school that reported a fully online degree reported a specialized master’s program. This regional concentration is at least partly a function of greater historical participation in the

BSQ in Northern America. However, since the regional concentration of schools offering fully online programs remains several percentage points higher than the regional concentration of BSQ participants in all years, participation is clearly not the only contributing factor. Given the origins of the Internet itself in the region, for example, schools in Northern America have most likely had the most time and opportunity to develop the virtual infrastructure necessary to make offering fully online programs feasible. Additionally, since fully online education makes geographical location largely a moot point from the perspective of potential students, the location of the offering institution probably matters less than it would for other modes of delivery. Now, it very well may also be that schools in regions other than Northern America are simply underrepresented in the BSQ thus far. The number of BSQ participants outside Northern America has grown steadily over the past seven years, however, and is 71.8 percent in 201314 versus 2007-08. This will be a trend worth continuing to watch, particularly as our global participation grows larger and larger.

Number of AACSB-Accredited Schools Reporting Fully Online Programs

Biography Ø Colin Nelson is Research and Knowledge Services Manager at AACSB International. Ø AACSB International is an association of more than 1,350 educational institutions, businesses, and organizations, across 84 countries, devoted to advancing quality management education worldwide. Ø This article originally appeared in a January 2013 AACSB Data and Research blog. The data included has been updated to reflect online enrollment from 2009-10 through the 2013-14 academic years.

Note: This table includes data from a controlled set of 497 accredited schools that responded to the AACSB Business School Questionnaire (BSQ) in all five years. Please note that each school may have more than one fully online program at each given level.

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QUEENS UNIVERSITY OF CHARLOTTE

ACCESSIBILITY, FLEXIBILITY,

Ron Shiffler

ueens University of Charlotte's online MBA combines team-based learning with individual mentorship to create a truly transformational learning experience. The curriculum places a strong emphasis on mentorship, team building and self-assessment, and students benefit from the direct involvement of prominent business executives. This interactive educational and coaching experience transcends the traditional classroom and provides students with a launch pad for a successful career. The programme has two intake dates, every August and January. Our McColl School board of advisors was enthusiastically supportive when we first discussed the idea of an online MBA with them. Mr McColl also encouraged us to move forward with the idea. With green lights from our core constituency, we felt confident that we could design a product everyone would be proud of. We believe we have succeeded. The first intake exceeded our most optimistic expectations as we launched with a cohort of 28 students in August 2014. We attribute this strong start to two factors – aggressive followup with prospective student inquiries and a recognition that more working professionals wish to secure their educational credentials from internet – enabled content. Our staff constantly stays in touch with interested students to ensure that they fully understand our value proposition and expectations. This courtship often extends over many weeks or months and keeps students moving forward in the application process. We require two weekend residencies over the course of the two-year programme, one at the beginning and one about halfway through. At the first residency, we invite Mr Hugh McColl, Jr, (former CEO of Bank of America) to network with students and deliver a keynote speech after dinner. Mr McColl shares his three C’s of leadership – character, competence, and commitment to community. Our programme also provides an executive coach for each student. These business leaders work one – on-one with students at the second residency, and then follow them through to graduation.

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A key feature of our cohort programme is the reliance on team-based learning. At the first residency we form student teams based on a battery of assessments, and require teams to develop and present a team charter before the residency ends. We include a team-building experience in the weekend activities. In addition, we encourage students todevelop protocols for how and when they will communicate, and ask them to set expectations for team participation. Teams stay together throughout the programme so that they learn how to operate effectively in a virtual environment. In addition, our staff continues to provide touches throughout the semester. Our programme is built on eight-week classes in which students take and focus on only one class during each eight-week session. Staff occasionally email and/or call students to see how they are doing. Our learning management platform shows us who is logging into class, how often, and for how long. When we see students lagging, we often touch base with them to see if they are having problems. At the end of each eight-week class, I send each student a congratulatory letter to celebrate their successful completion of the class and to encourage them to continue on. Alumni mentors are also checking in with their students, as needed. We try to find a balance between too much contact and too little contact. The success of our programme is directly related to the success of our students. Consequently, everything we do is intended to help students develop the confidence and competence to succeed. Having key business leaders take a personal interest in each student is one of our strategies for making the student experience much more than just interacting with a computer screen. Observing firsthand the professional behaviors of successful leaders is a value – added benefit for each student in our programme.

Community and Networking Creating a feeling of community and opportunities for networking are critical success factors for any online programme, and requires providers to develop innovative solutions. The primary challenge is to translate the on-campus experience through a digital

medium. All online providers, if they wish to be successful, must figure out how to create community among their students. Our approach is to alternate technology touches with personal touches. There is a maxim in fund-raising that it takes five-to-seven touches before you should ask for a major gift. We think something similar can be applied for online students. Earlier, we mentioned that we aggressively respond to student inquires and continue to follow-up and follow-through with multiple emails and phone calls. You may need five-to-seven touches before you can expect the student to complete an application for admission. Then, the cycle starts over again with another five-to-seven touches from admission to enrollment. Once classes start, it is up to each instructor to continue the touch cycle. At the beginning of the program each online student is assigned an alumni mentor. We are fortunate to have a vibrant and engaged alumni association populated with graduates of our masters’ programmes who care deeply about the McColl School and the brand for which it stands. When the idea of serving as an alumni mentor was proposed, we immediately had volunteers ready to serve. Our cadre of alumni mentors took the same courses that our online students are taking, so they can speak from experience when their mentee struggles with a particular topic. In addition, our alumni mentors have successfully navigated their own careers and can offer career advice, as well as networking connections for potential jobs. In short, if a school wants to be successful in the online space, it must be intentional with how and how often it intends to engage each student.

The Role of Leadership We begin with the assumption that self – awareness is the critical foundation for leadership and personal effectiveness. Our approach is two-fold: we provide online assessments and developmental exercises in an entire leadership development course, coupled with two highly interactive and experiential in-person residencies, to provide a framework for greater self-awareness and personal growth. Helping our students identify their leadership strengths and

QUEENS UNIVERSITY OF CHARLOTTE

& PORTABILITY their limitations, and how they work in a team, is a critical component of the development process. Their final project in the leadership development course is to create their own unique Leadership Development Plan to help guide them for the remainder of the online MBA programme, and beyond.

Online vs. On Campus The trend is definitely moving in the direction where online degrees are viewed as favourably by employers and H.R. professionals as those from traditional programmes. However, the more important question is – why are online degrees perceived favourably? There are at least two macro forces that are contributing. First, the sphere of H.R. professionals responsible for hiring is beginning to include representatives from Gen X and the Millennial era. These ‘younger’ managers who grew up with technology and are more comfortable with online delivery mechanisms are less inclined to dismiss candidates with online degrees. This phenomenon should continue to increase. Second, employers seek ‘ready-to-work’ candidates who must possess a behavioral and a technical skill set in addition to content knowledge. Online education helps develop the behavioral and technical expectations, especially for those programmes that use team-based learning. A student’s ability to master content knowledge is essentially independent of delivery form, and more a function of a student’s discipline and perseverance in applying themselves. The feedback so far from students has been, in a word – outstanding! Students tell us they like the personal touches, quick response, and caring attitude that we have tried to inject into the programme. Here are a couple of examples of student comments:

The different assessments... were very helpful in identifying my leadership style and how to improve upon it.

Overall this course has been awesome. I think it is a great introduction to the OMBA program and I have gained an abundance of practical knowledge that I can apply right away. The Online Advantage In my opinion, the top three advantages attached to an online MBA over a traditional programme are accessibility, flexibility and portability. Accessibility refers to a student’s ability to enroll in a university ‘anywhere.’ Online enables a prospective student – anywhere in the world – to ‘attend’ a university anywhere else in the world. A prospective student does not need to live nearby the institution s/he wishes to attend. Flexibility describes the ‘anytime’ freedom a student chooses to study. Instead of committing to a face-to-face class every Tuesday night, for example, students may work on their courses at any time. Portability refers to the ‘anyplace’ option that students have to study wherever they are – at home, in a coffee shop, in the airport, on a train, etc. Online education is fast approaching, if it has not already passed, a tipping point in terms of acceptance by the marketplace. With many brand – name universities offering programmes over the internet, and many corporate training programs delivered online, both students and employers are more comfortable with this style of delivery. There may still be a shroud of uncertainty about the overall quality of the product from for-profit entities, but those of us with bricks-and-mortar campuses have brand reputation to give us an edge. Of course, that is a

two-edged sword as we cannot afford to damage our brand with an average online offering.

An online MBA is NOT a MOOC MOOCs have not helped to improve the image of online education. Previously, we indicated that discipline and perseverance are critical success factors for students in any programme. MOOCs offer a seemingly easy way to access content (true), but MOOCs also hold a false promise that anyone can master that content. Students lacking discipline and perseverance are doomed to failure in a MOOC class. And, unfortunately, a vast majority of MOOC ‘students’ come up short on those traits. As a result, the dissonance coming from the MOOC bandwagon is not helping the perception of online education.

The Online MBA in 2015 and Beyond Excuse me for my ‘blue sky’ outlook, but I see very few clouds on the horizon for the foreseeable future for online education. As bandwidth grows and internet access penetration increases, there are more and more potential students, which means the pie is growing. Providers are growing too, but not nearly as fast as the potential market is growing. In short, there is plenty of business to be secured, even as the pool of competitors expands. What could hold back this growth would be a decline in the attractiveness of an MBA degree,which is happening to some extent right now. Still, those providers that offer a compelling value proposition combining some of the things we have been talking about in this interview – a quality programme that builds community and connects students with alumni and business leaders – will flourish.

Biography Ø Dr Ronald E. Shiffler is Dean of the McColl School of Business at Queens University of Charlotte, United States.

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ONLINE MBAs

Online MBAs: Worthless or Priceless? S

ince the internet took off, rendering hand written letters, long distance calls, and chequebooks extinct (or nearly so, at any rate); everything has been moving online. Amazon is the world's largest retailer, and Netflix streams new movies directly to consumers' television sets. Why should education be any different from other facets of modern life? In many ways, education is already online, even if it is not distance learning. High school students research their papers on the internet and turn towards online study resources provided by educators before sitting for exams. This extends all the way through undergraduate education. Universities with multiple campuses often teleconference classes when a professor’s expertise is needed in another city, or even country. When it comes to undergraduate degrees, many well-respected colleges offer programmes via distance learning.

But MBAs? It seems the online education trend has not yet caught on with the world’s leading MBA programmes. You cannot get an online MBA from Harvard, INSEAD or the London Business School. In fact, according to Bloomberg Businessweek’s extensive MBA lists and profiles, only three 48

of the top 20 MBA universities offer online programmes. Only one of those is listed in the top 10 (IE University in Spain, 3rd; along with Indiana University, 15th; and University of North Carolina, 17th). So, online MBAs (not to be confused with EMBAs) are not as ubiquitous as Amazon, though they are increasing in popularity. Bloomberg suspects the lack of online MBAs could be employer driven. As of five years ago, this was certainly the case. Employers simply weren’t interested in online MBA degree holders, but the stigma is lifting. Today, the push for additional online opportunities is coming from prospective students. Too many are keen to retain their current employment, and maintain their residence. The levels of students considering online MBAs could be as high as 14 per cent, which ultimately puts pressure on academic institutions to accommodate them. The Financial Times has been tracking the increase and releasing lists of online MBA programmes over the years. They include accreditation information for each of the degrees offered, and this is more than revealing – not every programme has AACSB affiliation. Though it does appear that where accreditation has been given, online and location based classes offer exactly the same curriculum if presented in different ways.

Today, the push for additional online opportunities is coming from prospective students. Too many are keen to retain their current employment, and maintain their residence. If there is no difference in coursework or curriculum, what can be stopping top schools from seizing online enrolments? There are some benefits to an online MBA that cannot be overlooked. Students with disabilities or responsibilities that prevent them leaving their home country can still benefit from home study, and the information acquired with it. Obviously, the more education that can be made available to the widest number of students is the best outcome for any university, or country. Courtesy of Prodigy Finance.

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Why I Connect with Strangers on LinkedIn In online and real-world networking, the same principle applies: You never know when you might make a crucial connection. Henrik Bresman

ocial networks are like any other social environment: No two have exactly the same standards of acceptable behaviour. For good reasons, most of us would think twice before granting a Facebook friend request from a stranger. And since the workplace tends to have more rigid social standards than other areas of life, people commonly assume that their cache of connections on LinkedIn – the leading internet venue for professional networking – should be similarly exclusive, if not more so.

But among my LinkedIn connections are many people I’ve never met offline. It’s not that I’m a fan of unsolicited sales pitches or the many other annoyances that can crop up on social media. As an organisational behaviour professor, I’m acting from a solid basis in research, which I am glad to share with you.

Weak Ties Win the Day In 1973, sociologist Mark Granovetter published a classic paper called The Strength of Weak Ties, which found that social capital, i.e. “who you

know”, was nearly three times more effective in finding people jobs than “formal means” such as Help Wanted ads and recruiters. And most of the time, jobs were found not through close friends and relatives but through casual acquaintances, neighbours, and other “weak ties”. Leveraging weak ties, Granovetter concluded, allows us to tap into knowledge not available in our inner circle, which tends to be composed of people like ourselves. Because weak ties lack trust, we cannot lean on them too heavily. But if we respect the nature of the relationship, these ties can extend our reach far beyond the contexts and communities we know best. Weak ties, unlike strong ones, are by definition low maintenance, and thanks to LinkedIn, the upkeep of sizable professional weak-tie networks has become next to effortless. Most of us are accustomed to forming LinkedIn connections with people we’ve just met at a networking event or business function. So why automatically balk when someone forgoes the face-to-face introduction and approaches you directly through LinkedIn? A digital invitation may not spell the start of a beautiful friendship, but it’s sufficient to forge the weak tie that one day may bring you the job, investor, or client of your dreams.

Finding Your “Godfather” There is no hard-and-fast way to know which of your weak ties will be the conduit for your next golden opportunity. That’s why it helps to make your network as diverse as possible. As a case in point, take this story from a former MBA student. The names in this tale have been changed, of course. Mark was a fast-rising executive and selfstyled turnaround artist who landed a great job heading up an underperforming internal auditing unit at a top aerospace company. Mark’s group of audit supervisors was responsible for collecting data, which were then processed by a 50

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team of assistants and their supervisor, Rachel. After months of trying his previously successful turnaround techniques, Mark was making no headway in fixing the unit’s problems. He needed help, but from whom? Fully aware of his newbie status in the company, he ultimately yielded to the experience of his colleagues and asked them who they turned to for help and advice. They unanimously pointed to an unlikely oracle: not even Rachel but one of her direct reports, Tanya. “Tanya has been here forever and knows the system back to front,” Mark heard over and over. By taking Tanya at face value – as a low-ranking employee with little decision-making power – Mark had overlooked a key potential ally. Naturally, he was eager to ask Tanya what she would do in his place, but despite her expertise and intimate knowledge of the organisation she had no concrete suggestions for him. Tanya was a particular kind of person found in most organisations, not versed in conventional leadership but an expert string-puller behind the scenes. Let’s call her a “Godfather” within the network. Getting on good terms with the Godfather produced swift results for Mark: Within six months, his unit was the most efficient in the entire department.

This example points up two basic rules of professional networks: 1) Power accrues to those in the organisation who are central to the network. 2) Power accrues to those who know the network. Getting back to the question of how to manage your own network of professional contacts: Unless you have a good reason to believe otherwise, it may be the wisest course to treat everyone you encounter as a potential Godfather.

Play the Long Game When I’m asked to admit a stranger to my LinkedIn network, one of the things I consider is whether there is any future scenario where having a weak tie to this person may come in handy. Perhaps he or she is deeply embedded in an industry or a country that isn’t vital to my career now, but could be important to its longterm growth. It would be a shame if rejecting

Thanks to LinkedIn, the upkeep of sizable professional weak-tie networks has become next to effortless.

a LinkedIn request caused you to lose out on a useful future resource. After all, if the new connection becomes a nuisance, getting rid of him or her is only a click away. Language like this often strikes people as cold. Indeed, when I speak to groups about networking, the issue of instrumentality – treating people as tools to get what you want – always comes up. This is one of the major qualms some people have about online networking in particular. Is it wrong to leverage a relationship with someone you haven’t even met in person? Again, I would counsel readers to think long-term: Online or off-, true manipulators always eventually make enemies and social capital gravitates to the genuine and the generous. With that in mind, you may want to consider giving unfamiliar LinkedIn suitors the benefit of the doubt. Courtesy of INSEAD Knowledge.

Biography Ø Henrik Bresman is Associate Professor of Organisational Behaviour at INSEAD. He is also co-director of the Management Acceleration Programme, part of INSEAD’s suite of executive education offerings.

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AUSTRALIAN INSTITUTE OF BUSINESS

MBA in NUMBERS THE

Top 10 Ways an MBA can Lead you to Success

Reasons to achieve an MBA are well-known, with many graduates reporting promotions, greater confidence, salary increases and a wider professional network as some of the top benefits of completing the qualification. With so many reasons to complete the programme, the Australian Institute of Business (AIB) decided to investigate the top 10 quantifiable ways that studying an MBA can benefit you. 1

Promotions

Want to take the next step up the career ladder? Promotions are the top reason why MBA students complete the programme. According to the 2014 Graduate Management Admission Council (GMAC) Alumni Perspectives Survey, the average number of promotions an MBA graduate receives following graduation increases over time. On average:     

2010 – 2013 graduates received one promotion 2000 – 2009 graduates received two promotions 1990s graduates received three promotions 1980s graduates received four promotions Graduates from before 1980 received five promotions.

Some students, such as AIB MBA graduate Andrea Davey, are promoted once or more during their degree, suggesting their MBA played a key part in this result. “My MBA contributed to my new roles by giving me the ability to apply strategic thinking across a number of functions – from management, leadership, and operational perspectives,” Andrea said. “It gave me the ability to sit back and look at the business holistically, from a more senior level.”

Salary Increase

According to a research study published in the 2010 Journal of Education for Business, studying an MBA really pays off. The survey found that graduates of fulltime MBA programmes are reporting average increases in their pre-MBA base salaries of 50 per cent, with part-time students earning a raise of 41 per cent. Results have been fairly consistent since 2009, as the 2010 Executive MBA Council Student Exit Survey has found. The average salary and bonus amounts of students rose 11.4 per cent from the beginning to the end of their programme, compared to a 9.4 per cent increase in 2009. AIB Joint-CEO Joel Abraham has seen the benefits students gain from MBA programmes during his more than 10 years at the company, and says that while salary bonuses are an incentive for many to complete the course, the benefits are far-reaching. “While many graduates experience almost immediate benefit from their MBA study, there are many others who invest their skills in starting or growing a business, which often results in a long-term support to their career throughout their lifetime.”

Increases in Value by Country

MBA graduates looking for the best compensation for their hard work need look no further than Australia, according to the QS 2013/14 TopMBA.com Jobs and Salary Trends Report. According to the report, the top ten countries in terms of average compensation of MBA graduates in 2013 were: Country

Average Compensation (USD)

Australia

133,100

Switzerland

129,700

Denmark

121,400

106,100

France

100,800

98,300

Brazil

97,200

Germany

93,700

Spain

92,900

Canada

91,600

With promotions, salary increases and bonuses, the payback period for the average MBA currently stands at between just two and five years. 52

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Completing an MBA can help to broaden the horizons not only of the student, but also their company, such as in the case of Debbie Nye, Partner of Australian Migration Skills Assessment Services (AMSAS). “My undertaking of the MBA was primarily because of new business ventures, but the skills I’ve learnt throughout the MBA have helped my current business to broaden its horizons, improving the business’s connections domestically and internationally,” she said.

Short Payback Period

With promotions, salary increases and bonuses, the payback period for the average MBA currently stands at between just two and five years, according to the 2013/14 QS TopMBA.com Jobs & Salary Trends Report. With the report stating that the average graduate receives a promotion within just four years of completing their degree (see above), and the number rising consistently over time, the MBA continues to prove itself as a highly affordable and effective investment. This is even truer for programmes with a practical focus and short duration that are designed for adults in full-time work to apply their new skills throughout their degree. The AIB MBA, for example, is designed for working adults with families who don’t have the money or time to put aside years of their

life toward completing a programme, and also holds its position as one of the most affordable MBA degrees in Australia.

Increased Value over Time

Not only does an MBA usually have a fast payoff, but its perceived value actually increases over time, according to the GMAC 2014 Alumni Perspectives Survey. The number of graduates who described their MBA as a good or outstanding value by year includes:  91% of alumni who graduated between 2010 – 2013  95% between 2000 – 2009  98% from 1959 – 1990s The report also states that the number of graduates agreeing that their ROI expectations were exceeded increases over time:     

16% of recent graduates from 2010 – 2013 26% who graduated in years 2000 – 2009 33% who graduated in the 1990s 38% who graduated in the 1980s 48% of alumni who graduated prior to 1980

“We’ve found that the more time that’s passed since graduation, the more career progression our alumni have experienced, and thus the greater value their MBA degree has,” Mr Abraham said.

Networking and Job Opportunities

One key benefit of completing an MBA degree is a wider professional network. This is particularly the case when joining a network of students from across industries, professions and locations all around the world. On-campus study and alumni events also form a key networking opportunity for students, with an increasing number receiving job opportunities and referrals from classmates as a result of their MBA programme. Amongst this number is AIB MBA graduate Bill Hayes, who was headhunted for a business opportunity as a result of a business connection with one of his AIB facilitators. He recently made the move to his new role as Executive President (Global) of the International Academy of Public Safety in the United States, and is now establishing corporations in Australia, New Zealand, South-East Asia, the United Kingdom and Europe. “The AIB facilitators were people I could relate to – most of them had involvements in business themselves, so they weren’t simply academics, but had work-based learning as well,” Bill said.

Increased Employability and Skills

Key skills that MBA graduates bring to the table include the ability to think outside the box, leadership potential and strategic focus, CEO MAGAZINE

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acumen and proven ability to perform, according to the 2014 GMAC Corporate Recruiters Survey. Furthermore, according to the 2013/14 QS TopMBA.com Jobs and Salary Trends Report, “Employers in general are satisfied with the technical skills acquired by MBA students, and this result seems to be independent of which business schools the employers recruit from, supporting the view that many of the core components of the MBA are broadly available to a high standard.” These skills are applicable to industries across the board, as Marc Racz, a Mining Engineer at one of Australia’s largest mining companies has found. “Completing an MBA helps me to see things through a bigger window, and make long-term decisions rather than just finding micro solutions,” Mark said. “I think everyone who wants to go for a managerial role in the future needs to have the skills an MBA provides on top of the technical expertise and experience he or she already has.”

Real-world Applicability

Despite being one of the most versatile degrees available, many MBA programmes are still labouring under the stigma that they are too theoretical to give students the skills that count in the real-world. There aren’t many degrees that allow you to learn something one day and apply it to your workplace the next, but select MBA programmes such as the AIB MBA allow students to do just this. “AIB’s MBA is created with working adults in mind and is designed for students to take what they learn one day and apply it to problems they’re facing at work the next day,” Mr Abraham said. “As our students are usually in full-time jobs, if studying on-campus they’re able to bring their business problems to the class and discuss them with students and experienced faculty members from other industries,” he said. “The nature of the programme also encourages students to use real work problems and opportunities in their assignments and Final Project, which they apply direct to their working role, benefitting themselves and their company as a result.”

Inspiration for your Family

Completing an MBA requires a serious commitment not just from the student, but also from their family. Many continue to work in full-time jobs while studying and supporting a family, so the art of creating a balanced life becomes an important skill. For many students the MBA has become an opportunity for family members to take charge 54

of the household and step up in their role in the family – it also provides them the chance to show their children that nothing should ever make you lose sight of your dreams. MBA graduate Kent Peters was proud to attend AIB’s graduation ceremony with his wife and young family, saying he felt a real sense of achievement having completed the degree. “I have my two sons who are 11 and nine here today. They wanted to be a part of it, hoping that maybe in seeing Dad graduate that’ll sow the seed for them as they grow and do their own educational experiences,” he said.

It Makes you Happy

According to a poll by MBA50.com, completing an MBA degree actually makes students happy. Having asked current students from business schools to rate their level of happiness before and after the degree, the survey found that students’ self-rated level of happiness increased as a result of completing the MBA, and most said they expected it would continue rising once they graduated and entered the ‘real’ world once again. The top reason for happiness (42 per cent of respondents) was the pleasure that came from individual self-development, with the second most important reason being career progression. “Completing an MBA is life-changing,” Mr Abraham said. “When I speak to students at graduation and the alumni events they talk about the massive transformation the programme has had on their lives, allowing them to take the next step in their career, so it’s unsurprising to find that a side reward of completing the MBA is happiness.”

Students’ selfrated level of happiness increased as a result of completing the MBA. Ø Australian Institute of Business is a 25 year old business school based in Australia, offering degrees, undertaking research, and providing consultancy services globally. AIB was the first, and remains the only, private institution in Australia to be government approved to confer the full suite of business degrees, including the prestigious PhD.

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LEARN, SLEEP, INNOVATE, REPEAT. Jorge Farinha talks Innovation at Porto Business School

he past year has been a very fertile one for Porto Business School, with many developments taking place ranging from new international programmes to awards and progression in international rankings. One of the most important developments was the opening of the school's new state-of-the-art building in December 2013. This building has the capacity to welcome 1,000 students, and received the highly regarded LEED Gold certification. This LEED certification â&#x20AC;&#x201C; Leadership in Energy and Environmental Design in Gold category, is issued by the United States Green Building Council, a non-profit organisation that defines the best international practices in environmental sustainability and evaluates building performances in terms of energy and water consumption, local impact, materials used and indoor environmental quality. Porto Business School was the first Portuguese school, the second in the Iberian Peninsula, and the largest educational structure in Europe to receive this level of certification, joining a very small group of international schools, including Harvard, MIT, Columbia and Stanford who have also been recognised. The new facilities include three artificial lakes that collect rainwater, which is partly used for the sanitary discharges and irrigation, and efficient air conditioning and lighting systems (for example, the intensity of the light is automatically adjusted by daylight and space occupancy in a room). In addition, a wide variety of recycled and non-toxic materials were used

in the construction of the building. In achieving this LEED Gold certification, Porto Business School stresses the importance it attaches to environmental sustainability and energy efficiency, and enables us to pass a strong and impactful message to students and corporations on these issues.

Fostering innovation At Porto Business School we are constantly looking for ways to foster innovation in our programmes. In 2013, Porto Business School was one of the finalists in the MBA Innovation Award that is issued annually by the Association of MBAs, one of the most important MBA

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accreditation agencies worldwide. This was related to a unique activity we have been developing in our full-time Magellan MBA programme – ‘Sailing with a CEO’. This is an intense two-day event where students learn about team management in a sailing environment (a hard thing to do in a very short

period of time) and compete with each other in numerous regattas. In this activity they have the assistance not just of professional skippers, but also from CEOs and other top executives from our MBA Alumni. These managers join students in the boats and provide them with advice and feedback on their team management capabilities.

Sailing with a CEO is an intense two-day event where students learn about team management in a sailing environment.

In addition to being a great learning process, it is a wonderful way to create a relationship with highly regarded managers of some of the largest companies in the country, including CEOs or Board members of Sonae, EDP, Cerealis RAR and Ramada. One of the most fascinating things about using sailing as a platform for learning about team management is that in real life business decisions typically bring consequences after a certain time lag (months or years). But in sailing, a good or bad decision can have an almost immediate observable impact. So, in a way, it’s like an “accelerated management process” or, if you prefer, “management on steroids”.

The CoHitec Entrepreneurship Course This is a very special, award-winning, course that has been offered at the MBA programme for almost ten years now. CoHitec, where Porto Business School partners with an Innovation Agency (Cotec) and North Carolina State University, offers a training programme in technology commercialisation aimed at supporting the valuation of the knowledge produced at Portuguese R&D institutions. Each year there is a call for scientists from different Portuguese universities to bring a new technology under development to the scrutiny of both MBA students and experienced senior managers. Together they assess the technology’s business potential and think about a business model aimed at reaching global markets. After an intensive four months of discussions, data gathering, contacts with industry and market CEO MAGAZINE

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Networking opportunities Networking is actively encouraged at Porto Business School in several ways:

AMBA Student of the Year Marta Rodrigues Cordeiro e Cunha

analysis, different groups pitch their business case to an audience of mostly business-related people, including many venture capitalists. This year we had the benefit of welcoming, as the keynote speaker in the final project presentations, Alan Goodman, a famed British serial entrepreneur who founded, among others, Acambis, which was sold for $546M to Sanofi. As well as the possibility that some of the business ideas might actually become real companies (more than 25 firms have been formed since the programme started), students learn the nuts and bolts of the process of transforming a hi-tech idea into a real business. As a result many students have started their own hi-tech ventures or have become business consultants in this field after completion of the MBA. In 2010, a project developed in the CoHitec programme was the winner of the I2P – Idea to Product competition held at the University of Texas at Austin. The programme also won the ‘Price Foundation Innovative Entrepreneurship Educators Award’, during the Roundtable on Entrepreneurship Education for Scientists and Engineers (REE) held at Stanford University in 2006.

Personal development Communication, negotiation and leadership skills are of the utmost importance for our MBA programmes. Students have a rich set of modules that include two outdoor team management activities (such as Sailing with a CEO), presentation skills workshops, a course on negotiation, two modules of personal development, courses on leadership and 58

entrepreneurship, and many other activities where group interactions are crucial. Alongside international experiences in different cultural environments (in the International Week or during their final project activities, many of which are held abroad), we believe that the personals skills developed during the MBA experience will bring a major competitive advantage for our students in the marketplace.

Nurturing corporate relationships Porto Business School has a unique governance structure where, alongside strong ties with the University of Porto (often the highest ranked Portuguese university), the school also has 35 corporate partners including several wellknown global corporations (including Bosch, Samsung, Deloitte and PwC) and many of the largest Portuguese companies (such as Sonae, RAR, Mota-Engil and all major banks). These companies have a real say on the school’s matters, from strategic choices to the appointment of PBS’s executive board. Many of our MBA alumni, teachers, tutors and student mentors are also the top managers and executives in these companies This means that students can feel the presence and influence of the corporate world in many of the school’s activities, from seminars, to lunches with executives, and the already mentioned Sailing with a CEO module, on a daily basis. These corporations are also essential in suggesting final project topics and other challenges to students during their MBA. Finally, these firms can rightly be seen as a crucial component of both the student recruitment and placement processes.

 Students join an online social media platform where they can connect instantly with all of the Magellan MBA alumni since the inception of the programme.  "PBS Ambassadors", a network mostly composed of MBA alumni, which is currently spread across more than 60 countries. This means that a student wanting to get advice (about the business environment in a particular country, for example) will likely find a PBS Ambassador more than willing to help them – whether that be for the purpose of building a new business relationship, developing a new market or even recruitment and placement.  Weekly events at the school’s premises where students get the opportunity to meet managers, create personal visibility and build relationships.  The Mentoring Programme, where students who participate are assigned a senior manager as a mentor for one year. Their role is to provide the student with advice on the development of their career after the completion of the MBA.  The network of 35 Corporate Associates (many of them international) offers a great number of opportunities for students, complemented by the numerous activities of the School’s Career Management Services.

Standing out from the crowd I believe that success comes from two sources: the quality of the students enrolled and the rich experience they enjoy during the MBA programmes. All applicants for both the Executive and full-time Magellan MBAs are individually screened and interviewed by an admissions committee to ensure that they have all the characteristics we would expect for a successful MBA candidate. These highcalibre individuals then enter an intense learning process where we seek not just that they learn core management subjects, such as accounting, marketing or finance, but also that they develop themselves as individuals who are responsible, focused, have a strong sense of ethics and sustainability concerns, and are good communicators, negotiators and team players. Unlike most business schools, we have also developed a special business culture, likely arising from an economic context that is particular to Portugal. Students are used to doing a lot, often with very few resources. This requires a lot of creativity and an innovative mindset. We believe that in order to succeed you need, above all, to have these qualities, and not just access to a lot of resources, financial or otherwise. Sometimes the

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over-abundance of resources can actually mitigate innovation and creativity. If you can be successful in a difficult and small economic market, such as the Portuguese one, then you possess all of the qualities to become even more successful in larger markets. We believe that this is why our entrepreneurs are often extremely successful abroad, and perhaps it’s no coincidence that this year’s winner of the AMBA Student of the Year Award, Marta Rodrigues Cordeiro e Cunha – a graduate of Porto Business School – is someone very much engaged in innovation.

Preparing students to ‘make things happen’ The vast majority of our MBA courses have a component where students engage in group or individual assignments that are focused on reallife companies. Students also get the opportunity to act as consultants to real organisations and entrepreneurs, such as the recent Connect to Success: Business Consulting to Women Entrepreneurs programme, organised jointly with the US Embassy in Portugal. Also, the final project for both MBA programmes is usually the result of a managerial challenge that has been proposed by a real company to students and their business school tutor. Finally, courses in entrepreneurship or the CoHitec programme are important instruments in motivating students to launch or develop new business ideas. I should also mention that many students develop their MBA final project for non-profit organisations, or by helping small, local entrepreneurs in countries like Mozambique, Mali, Haiti and India. In brief, students have no shortage of opportunities to ‘make things happen’.

STUDENT FEEDBACK The Magellan MBA has matched the quality of curriculum I could expect in Canada, but with an added international/cultural education that just couldn’t be duplicated by staying at home to study. Working with colleagues and professors from all over the world, every day, teaches important skills that I don’t think can be matched with a traditional education. The program also has the benefit of a small class size, making the experience even more personal and giving each student more opportunity. The professors are of very high quality – all experts in their fields. The program is very intense and expects a lot out of students, but living in Porto balances it out. Porto is an endless cultural experience – with fabulous restaurants, cafes and nightlife. There is literally a new experience down every cobblestoned street. People from Porto, and my Portuguese classmates, are also some of the friendliest people I’ve ever met, making foreigners instantly feel at home. Alana Baker – Canada, The Magellan MBA 2014/15. The Career Services department’s willingness to help facilitate connections and introductions to professionals in my area of interest has provided me with invaluable industry insight, while assisting me in continuing to grow my professional network. Marcus de Castro – US, The Magellan MBA 2013/14. The Magellan MBA was a great and enriching experience, not only due to the heterogeneity of the students’ nationalities and backgrounds, but also because of the diversity of the course contents. The strong emphasis on soft skill development differentiates this course from any other. I was able to deepen my knowledge in management and to learn new tools that will help me throughout my professional life. The International Week is a must have in this MBA. We attended interesting seminars and got to know some expert teachers – it was a lot of fun! Summing up, The Magellan MBA is a life-changing experience. Isabel Lencastre – Portugal, The Magellan MBA 2013/14.

Reflecting the real needs of business

Porto Business School in 2015 and beyond

We closely monitor the opinion of recruiting companies and our corporate associates regarding the quality of our MBA graduates and the contents of the MBA curriculum. This is done through several means, but an important one is the presence of corporate representatives in our MBA Committee of Studies. This body regularly reviews the structure of the MBA programmes and suggests, or analyses, proposed curricula changes. We also conduct regular surveys on the corporate perception of our graduates, and get feedback from recent graduates on the usefulness of the training received during the MBA. Our alumni are also represented in our MBA Committee of Studies. In addition, a great number of our faculty (certainly more than 90 per cent) have relevant business experience as managers or consultants, and actively share this with students.

The business education environment is increasingly competitive. Differentiation is a key ingredient and technology is now challenging established business school models. Schools like ours need to offer a full experience where networking and learning go hand-in-hand, and where having an outstanding learning environment needs to be complemented with increasing international exposure for students, and intense usage of new learning technologies. 2015, and the ensuing years, will thus be a period where Porto Business School will invest heavily in new state-of-the-art learning platforms and where the school will be developing further internationalisation opportunities for students, either through partnerships with other renowned international business schools, or through more intense usage of corporate networks with international links. It is also in

Students have no shortage of opportunities to make things happen. 2015 that Porto Business School will further seek to expand its activities abroad. In the last few years the school has already offered custom and open executive programmes in Spain, Angola, Mozambique and Cape Verde. These offers should be intensified in 2015 and beyond.

Biography Ø Professor Jorge Farinha is Coordinator of The Magellan MBA and Vice Dean at Porto Business School, Portugal.

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JACKSONVILLE UNIVERSITY

CEO FOCUS:

Indra Nooyi At Jacksonville University, Global PepsiCo CEO Indra Nooyi offers insight on Higher Education.

epsiCo Chairman and Chief Executive Indra K. Nooyi received the inaugural Jacksonville University Presidential Global Citizen Award November 13 in Jacksonville, Florida. The award is given to a visionary leader whose influence is felt "well beyond the bounds of his or her recognized responsibilities" and who embodies Jacksonville University's ideal of a "globally engaged citizen creating opportunities to lead, live and learn." Before an audience of more than 400 business leaders, as well as graduates of the university and its AACSB accredited Davis College of Business, Nooyi shared her thoughts on the state of higher education and academia during a Q&A session with Jacksonville University President Tim Cost:

Always remember you are citizens of the community, wherever you operate.

On universities doing a better job of training and equipping their students “If we don’t allow the next generation to do their thing – learn from us but also unleash their creativity – I’m not sure we will progress as a society. In many ways, I observe that professors teach students how not to operate in silos, but then universities operate in silos. So we talk from both sides of our mouth.”

On MBA students being taught to “make money at all costs” “We talk about how we’ve got to do good by society, and yet we don’t teach it in our business schools... We tell them that making money is paramount... indirectly we tell them, if you get into trouble, go to your law school buddies, they will bail you out. If you have an environmental problem, go to the environmental school, they’ll bail you out. And if all else fails, go to the divinity school and they’ll pray for you! It doesn’t work that way. We cannot teach students that they need to make money without regard for consequences.” 60

“Tell them, ‘don’t get selfish. Always remember you are citizens of the community, wherever you operate. Yes, you can make money, but do it the right way.”’

On what she would tell a business graduate heading out into the world “You might think that once you graduate, your learning has stopped. No. You must remain a lifelong student. Even today, I research and read on topics on anything our people work on. I go off and buy a book, get articles, read about it. It could be any topic. I get the details so I can understand. To be an effective leader, you must strive to understand the world around you. That means continuing to learn.”

Profile Ø Indra Nooyi is Chairman and Chief Executive Officer of PepsiCo. She was named as the 3rd Most Powerful Woman in Business by Fortune on 2014. Ø Jacksonville University in Florida is home to the Davis College of Business. The business program at JU was established as a small division within the College of Arts and Sciences in 1967. The business programs were given the status of a College of Business in 1979 and the first MBA classes were offered in 1980 and first Executive MBA program in 1986. The Davis College of Business remains the only AACSB accredited private business school in North Florida and South Georgia.

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FROM APPLICATION TO GRADUATION

From

APPLICATION Niagara University

Why Niagara University?

Learning Outcomes

The Niagara University (NU) MBA is special by virtue

The NU MBA is accredited by AACSB International and

of its location and the distinctiveness of its programs.

achieving excellence in learning outcomes is essential

The NU MBA is situated on the nexus of US â&#x20AC;&#x201C; Canada

to our success. Our programs infuse mastery of written

trade which comprises one of the worldâ&#x20AC;&#x2122;s most valuable

and oral communication, analytical decision-making,

bi-national trading and investment relationships. The NU

information literacy, globalization, team building and

MBA is also on the frontier in advancing new business

ethics. In addition, students master both functional and

models and strategies in reaching markets worldwide.

integrative excellence of business disciplines.

Our programs can be taken on a full-time, part-time, or accelerated basis to meet the unique needs of each

The Learning Environment

student and achieve a high ROI. Our facilities and faculty

Niagara University is well known for its superior

are unsurpassed in their excellence.

teaching and learning environment and hosts an annual international symposium to educate other institutions on

Applying to Niagara University

best practices. Active and integrated learning is embedded

We hold open houses and webinars on a regular basis. In addition to our MBA, with multiple areas of concentration including strategic marketing, strategic management, corporate finance, strategic wealth management, financial planning, accounting, human resource management, and international business, students may also apply for our MS in Finance or our MS in Healthcare Management. We added have new concentrations in strategic wealth management, personal financial planning, and healthcare administration. We are now offering an MS in Finance and Healthcare Management. For a webinar or personal visit please contact us!

breathtaking in design and functionality and have won

in all programs. Students are engaged with a faculty who blend the latest academic knowledge with best industry practices. Our new, multi-million dollar facilities are awards for excellence.

International Exposure Students may participate in a global trade mission class. In this class, students are accompanied by global trade executives and faculty, and complete case studies on specific companies prior to departing. Students are then invited to corporate level suites for presentations and discussions. Students have visited and made presentations to leading corporations in China, Singapore, Hong Kong and Europe. We also offer a popular module on new technology commercialization. In this course, students take a product from patent to commercialization and advise corporate leaders on strategy through the presentation of a strategic plan. We are proud that students have been offered career opportunities through these experiences.

Networking Opportunities Situated at the crossroads of global commerce, our campus is alive with events and networking opportunities with faculty, students, and executives from around the world. Our perfect location on the frontier of the Niagara escarpment also makes it the destination of choice for business symposia and professional events. The networking opportunities are simply unmatched. 62

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FROM APPLICATION TO GRADUATION

GRADUATION Personal Support

Return on Investment

The NU MBA takes pride in providing exceptional support.

The NU MBA provides excellent ROI. Students with business

Students are pampered with the personal attention of

backgrounds may transfer up to 18 credit hours, although

advisors who engage in delivering a superior educational

a business background is not required for admission.

experience. Our Vincentian Heritage informs a deep

In addition, students can complete the program in an

commitment to serving our students. Our programs offer

accelerated fashion or at their own pace while maintaining

flexible study modes to meet the special goals of each

external careers. The facilities and innovative programs raise

student. Classes are small, and students and faculty

the value of learning outcomes, and the excellent Career

work closely together.

Services Center connects students to opportunities. High

Career Support The NU MBA offers an unbounded array of internship and employment opportunities through our Career Services Center. The Career Services Center is supported by a dedicated and exceptional staff who advise students on career development and have great success in placement.

ROI is a key benefit of the program.

The Niagara University MBA is on the frontier in advancing new business models and strategies in reaching markets worldwide.

Alumni Network The Vincentian Heritage of Niagara University links our community like a global family. We remain connected and engaged through formal and informal alumni networks. Our alumni are world leaders in business and in their communities. This vital NU connection is both an

Biography Ă&#x2DC; Dr Paul Richardson is Director of the MBA Program and Associate Professor of Marketing at the College of Business Administration, Niagara University, New York.

opportunity and a responsibility for our students.

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LIST OF CONTRIBUTORS

List of Contributors A

AACSB Australian Institute of Business

Niagara University

Georgia WebMBA

Porto Business School Prodigy Finance

INSEAD Knowledge

Queens University of Charlotte – McColl

Jacksonville University

The Fraunhofer Academy

Kent State University

University of Chicago – Booth University of North Alabama University of Pennsylvania – Wharton University of the Sciences

L Lemniscaat School of Management M Mark C. Crowley

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