Business education: Statements

http://www.economist.com/debate/days/view/900/print

Opening statements
Yes
Henry Mintzberg
!eghorn "ro#essor o# Management Studies$ Mc%i!! &niversity's (esaute!s )acu!ty o# Management
Management is a cra#t$ rooted in e*perience. But one cannot teach the cra#t to peop!e who
!ac+ the e*perience. ,hose who be!ieve they have !earned management by sitting sti!! in an
MB- c!assroom are a menace to society.
.o
"au! (anos
(ean$ ,uc+ Schoo! o# Business$ (artmouth o!!ege
/ agree that a business !eader must have e*perience to tru!y hone his or her management
s+i!!s. However$ two years in a modern and we!!0#unctioning MB- programme wi!!
acce!erate students on the path to !eadership.
,he moderator's opening remar+s
.ov 12th 1031 4 Bi!! 5idgers
,he stoc+ o# the MB- may never have been higher. 6# the )ortune 700 companies some
100 are now run by a ho!der o# the degree$ #ar more than #or any other 8ua!i#ication. )orty
o# these chie# e*ecutives graduated #rom Harvard Business Schoo! a!one. Be!ow them are
boardrooms stu##ed with business0schoo! graduates$ rep!enished by #ast0trac+ !eadership0
deve!opment poo!s #ed by a simi!ar source.
But are MB- students good #or the economy9 -t #irst g!ance it might seem an odd 8uestion
to as+. ,he pro#essiona!isation o# management has$ some argue$ been the sing!e biggest
#actor behind the economic advancements o# the past 300 years. Basic ideas such as such as
paying emp!oyees #or their ta!ents and capita! budgeting have made companies more
competitive and he!ped to improve the !ives o# mi!!ions o# peop!e.
Sure!y$ then$ the #act that the most power#u! peop!e in business have studied management at
the wor!d's best universities is a good thing. ,his is what "au! (anos$ the dean o#
(artmouth &niversity's ,uc+ Schoo! o# Business$ wi!! be arguing. He thin+s that the reason
business prizes MB-s so high!y is because they have been taught the business and
!eadership s+i!!s that companies re8uire. -#ter a!!$ i# they didn't$ they wou!dn't hire and
promote them so enthusiastica!!y.
Henry Mintzberg$ a management guru most #amous #or his boo+ :Managers .ot MB-s:$
does not agree. He says that MB- programmes teach the wrong things to the wrong peop!e.
.ot on!y does this mean that companies are !ed by unsuitab!e peop!e$ but it a!so means that
the right candidates;who have !earned the cra#t o# management through years o# practise
;are barred #rom !eadership positions by an o!d boys' networ+. ,his$ he be!ieves$ ho!ds the
economy bac+.
,here are other issues that we might consider in this debate. )or e*amp!e$ do MB-
programmes aid deve!opment in emerging mar+ets9 -re business0schoo! graduates more or
!ess !i+e!y to act in an ethica! way9 /s it he!p#u! when an entrepreneur has an MB-9 Having
written about MB-s #or many years$ / +now that such sub<ects divide opinions. Many o#
those who have been to business schoo! ta!+ about their e*perience with an a!most
evange!ica! zea!. 6thers !i+e to disparage MB-s with e8ua! enthusiasm.
/ hope to hear #rom both sides over the course o# this debate. =e are !uc+y to have a
heavyweight in each corner: we cou!d not as+ #or two more #orthright and robust thin+ers
on management. / hope that the ne*t two wee+s a!!ow us a!! to consider the nuances o# our
be!ie#s and reach a more considered opinion.
,he proposer>s opening remar+s
.ov 12th 1031 4 Henry Mintzberg
=ere conventiona! MB- programmes to be c!osed down$ a #ew potentia!!y e*ce!!ent
managers wou!d be denied that boost to the e*ecutive suite. But other capab!e peop!e
without that piece o# paper wou!d have a greater chance o# getting into manageria!
positions. /ndeed$ the best managers wou!d #ind their way there anyway$ and with greater
<usti#ication: they wou!d have earned their manageria! stripes as they must$ by managing.
-s a conse8uence$ companies wou!d be better managed and the economy wou!d be better
o##. (on't get me wrong. /t is not that the MB- is irre!evant. 5ather$ it is high!y re!evant$ in
a negative sense: it represents a #orm o# training that distorts rather than deve!ops the
practice o# management.
,his is the argument / made in my 100? boo+ :Managers not MB-s:. Such programmes
continue to pro!i#erate whi!e some economies that emp!oy many o# their graduates have
been #a!tering$ so there may be bene#it in reviewing and updating my argument. /t is 8uite
simp!e: conventiona! MB- programmes train the wrong peop!e in the wrong ways with the
wrong conse8uences.
Management is predominant!y a practice$ not a science or a pro#ession. /t is a cra#t$ rooted
in e*perience. ,he best o# it is a!so art$ #ormed by visions and insights.
But one cannot teach the cra#t to peop!e who have never managed;who !ac+ the
e*perience. So MB- programmes most!y #a!! bac+ on what they can do: re!y on the science$
in the #orm o# theory;both genera! ana!ysis and particu!ar techni8ues. -nd so too$
un#ortunate!y$ do many o# their graduates. ,hose who be!ieve they have !earned
management by sitting sti!! in an MB- c!assroom are a menace to society. Most!y they have
!earned about the #unctions o# business. But mar+eting @ #inance @ accounting A
management.
"ro#essiona! training$ such as #or medics$ is generic;an appendectomy is an
appendectomy. Management$ however$ is rooted in conte*t. /t re8uires a deep
understanding o# the industry$ the enterprise$ the peop!e$ the processes and the products.
6# course$ MB- programmes use case studies: are these not conte*t9 Sure$ in the #orm o#
30010 pages o# words and numbers about a company the students have never met. But what
is the e##ect o# reading these cases and then having to pronounce on what the company
shou!d do;two or three companies a day$ #or two years9
=e don't have a re!iab!e answer to this 8uestion. Business schoo!s that are so intent on
ana!ysing everything e!se have been remar+ab!y re!uctant to ana!yse their own per#ormance.
Sure$ they can te!! you how many o# their graduates made it to the :top:;that's easy;but
not how these peop!e per#ormed when they got there. BBear in mind that %eorge =. Bush$
Harvard MB- 3927$ made it to the top.C
Having this #ashionab!e credentia!$ supported by an :o!d boy's: networ+$ with the trained
capacity to ta!+ a good game whi!e moving 8uic+!y$ has he!ped put many an MB- in the
D6 chair. ,hen what9
- 3990 boo+ pub!ished by Harvard !isted 39 o# its superstar D6s. =e trac+ed their records
to 100E Bthe resu!ts are reprinted in my boo+C. ,en were tota! #ai!ures and #our others
per#ormed 8uestionab!y at best. ,his o##ers no de#initive proo# but is certain!y worth
investigating. / +now o# no e##ort to do so.
,he -merican economy has been having great troub!es o# !ate. /s the pro!i#eration o# MB-s
one cause9 =ou!dn't it be nice to have data on that too9 But one thing is evident: many o#
the most dys#unctiona! practices in business today have been promoted vigorous!y in the
business schoo!s: !eadership disconnected #rom the practice o# managingF an obsession with
shareho!der va!ue that has brought companies the obscenities o# D6 compensation and a!!
that destructive :downsizing:;read b!ood!etting;at the drop o# a share priceF human
beings considered to be :human resources:F companies mesmerised with measuringF the !ist
goes on.
So how about programmes that are not conventiona!;by which / do not mean those that
drop in a coup!e o# new courses on !eadership and ethics9 Dvery time MB- programmes get
criticised$ they add courses instead o# addressing the #undamenta! prob!em.
Get me suggest two approaches in particu!ar. ,he #irst is to recognise MB- programmes #or
what they do we!!: training ana!ysts in the business #unctions #or specia!ised <obs in
mar+eting research and #inancia! ana!ysis. ,hese programmes <ust have to ma+e sure that
they stamp every graduate on the head with a s+u!! and crossbones$ over the words
:=arning: not prepared to manage:.
,he second is to create new programmes$ under a di##erent !abe!$ that enhance the practice
o# managing B/ pre#er the !abe! :Masters in "ractising Management:C. Such programmes
shou!d be open on!y to peop!e who are a!ready managers$ pre#erab!y sponsored by their
organisations$ idea!!y in sma!! groups so they can wor+ together in the c!assroom. ,hese
managers shou!d remain in conte*t$ coming into the c!assroom periodica!!y.
=ays can then be used that are appropriate #or practising managers Bun!i+e most so0ca!!ed
D*ecutive MB- programmes$ which$ a!though aimed at senior managers$ rep!icate
programmes designed #or peop!e with no manageria! e*perienceC. Sitting at round tab!es in
a #!at c!assroom$ these managers can go into wor+shops #re8uent!y$ with input #rom #acu!ty
as we!! each other. ,hen$ bac+ at wor+$ these managers can team up with co!!eagues to put
their !earning into practice.
=e have been doing a!! this #or some years$ in programmes #or managers in business and
hea!th care. -!! estab!ish a c!imate o# !earning stri+ing!y di##erent #rom that usua!!y
encountered in MB- c!assrooms. /n p!ace o# !one wo!ves in search o# better <obs there are
managers committed to doing a better <ob. /nstead o# promoting the abstractions o#
:!eadership:$ these programmes encourage the engagement o# managers. =ou!dn't that
ma+e #or a better economy$ !et a!one a more humane society9
,he opposition>s opening remar+s
.ov 12th 1031 4 "au! (anos
,here is !itt!e evidence to support this proposition and much to re#ute it. )ree mar+ets are
genera!!y good at determining va!ue$ and #or decades the mar+et #or young business !eaders
has given a strong vote o# con#idence to the graduates o# top MB- programmes. ,uc+ and
the other !eading schoo!s p!ace their graduates in an amazing array o# the wor!d's
businesses. ,he remar+ab!e career options o# the 170E0 year o!ds who ma+e up the vast
ma<ority o# students in #u!!0time programmes is power#u! a##irmation that the mar+et p!aces
a high va!ue on the s+i!!s o# our graduates. ,he demand #or these graduates has grown
e*ponentia!!y: (artmouth opened the #irst graduate business programme in 3900 with #our
students. ,oday hundreds o# thousands o# graduates are hired out o# schoo!s each year #rom
Be!arus to Bang!adesh.
Simi!ar!y$ demand #or s!ots in the top programmes is e*traordinari!y competitive. /t is not
unusua! #or these schoo!s to receive ten or more app!ications #or each opening. -pp!icants
now come #rom a!! over the wor!d and #rom a variety o# careers. ,he diversity o#
e*periences these students share with their peers is a cornerstone o# the !earning that ta+es
p!ace on campus.

,he mar+et does not p!ace such high va!ue on top MB- graduates #or no reason. /ndeed$
there is great intrinsic va!ue to the !earning that ta+es p!ace in the c!assrooms o# the best
business schoo!s. =ith its courses$ pro<ects and networ+s$ the MB- e*perience ma+es
young men and women substantia!!y better prepared to start a business !eadership career;
better prepared not on!y than when they enro!!ed but than their peers who #o!!owed other
educationa! or career paths. ,heir pro#essors' deep +now!edge o# a wide array o# #ie!ds$ the
business and cu!tura! e*periences shared among students and the mentoring o# a!umni in
!eading g!oba! companies broaden and deepen students in ways that wou!d be hard to match
in a comparab!e amount o# time wor+ing inside a company.
Yet the business wor!d is hard!y absent #rom !eading MB- programmes;as some critics
contend. Business schoo!s connect to it through e*perienced students$ through a steady
stream o# visiting business !eaders and through #acu!ty whose research probes the history
and e##ectiveness o# business practices. /n #act$ a ma<or strength o# the top MB-
programmes is that they are constant!y responding to the needs o# industry. Business
schoo!s give students a broad view o# practices across a variety o# evo!ving industries$
e*posing them to a range o# ideas and strategies they might otherwise miss. ,hey a!so
provide an introduction to business ethics and mode!s #or ethica! ana!ysis;with e*amp!es
o#ten presented by visiting managers.

6ther critics argue that MB- programmes mere!y deve!op ana!ytica! s+i!!s and re!y too
heavi!y on e*ercises such as case studies$ which #ai! to capture the nuance o# the modern
business wor!d. Such arguments are outdated. /n the past two decades$ business schoo!s
have broadened their teaching$ giving students e*posure to not on!y ana!ytica! techni8ues
but a!so the va!ues and interpersona! s+i!!s needed to be a !eader. /n addition to ethics$
students o#ten study the societa! impact o# business and the comp!e*ities o# wor+ing in a
g!oba! mar+etp!ace. ,eaching strategies are a!so increasing!y varied$ with cases$ pro<ects$
internships$ !ectures$ internationa! trave! and web0based !earning a!! emp!oyed by most
!eading schoo!s.
-nother criticism o# business programmes is that whi!e they e*ce! at teaching s+i!!s such as
#inance$ strategy and mar+eting$ they #ai! to teach management. ,hat's because its +ey
component$ !eadership$ is an ephemera! s+i!! that can on!y be !earned through practice. ,his
argument isn't merit!ess. / agree that a business !eader must have e*perience to tru!y hone
his or her management s+i!!s and that nothing can match the comp!e*ity$ grittiness and
intense reward pressure #ound in the business wor!d.
However$ two years in a modern and we!!0#unctioning MB- programme wi!! acce!erate
students on the path to !eadership$ particu!ar!y those who have had signi#icant wor+
e*perience be#ore starting their coursewor+. Students !earn to rapid!y trans!ate events into
data Band vice versaC$ how to communicate e##ective!y with customers$ supp!iers and
regu!ators and to see how their organisation can broad!y a##ect society.

-!! this preparation$ !earning and practice !aunches amazing careers. %raduating #rom a top
MB- programme rapid!y advances students on the road to !eadership. /'ve seen students
who were engineers become business0deve!opment specia!ists #or high0tech companies$
che#s who become mar+eting e*ecutives and /, specia!ists who become investment
ban+ers.
=or!d demand #or great business !eaders is e*p!oding. ,he spread o# mar+ets and the
e*change o# business practices is +nitting the wor!d ever c!oser$ #ostering strong !ega!
systems$ raising !iving standards and !eading to to!erance and co0operation. /nternationa!
MB- programmes p!ay a crucia! ro!e in this e*change. D##ective$ progressive managers
!ead to stronger companies$ and stronger companies ma+e #or better0o## economies. ,here
are any number o# success#u! business !eaders who have never seen the inside o# a business
schoo! c!assroom$ but the !eading MB- programmes turn out even more young peop!e who
wi!! !ead tomorrow's most en!ightened and prosperous companies. /t is true that the road to
business !eadership does not a!ways start in a business schoo!$ but many great companies
regu!ar!y choose MB- graduates and thousands o# e*traordinary young peop!e choose the
MB- path. / be!ieve that these choices are rationa! and on ba!ance wi!! !ead to a better
wor!d.