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The economic downturn has provided
substantial clarity about the historical
internal machinations and ultimate value of
business schools. Those aspects of business education that were once thought hidden
or inconsequential have suddenly been thrust onto center stage. Initially, individual schools
quickly moved to ascertain whether any of their
graduates were recognized as direct contributors to
the demise of specific corporations or financial institutions. Because so many corporate
executives received their training in business schools,
the first months of the downturn brought strident
and oftentimes disparaging questions from the
media. As the Dalai Lama recently asserted, the
global economic crisis is directly related to business. In
a BusinessWeek article he said, "I'm telling
people, including some businessmen who are my
friends that this global economic crisis was caused by
too much greed, speculation, and hypocrisynot being transparent. These are the moral and
ethical issues. So be transparent and honest right from
the beginning." He further noted an obsession
many have with the unbridled acquisition of money. Comments by the Dalai Lama and others
have encouraged consideration of many questions. Should business schools make more of an effort
to teach values, including family or compassion?
Are business schools ultimately to blame for the economic downturn? Did business
school curricula help or hinder the efforts to head off
the downturn?
Once media pressure eased and business school leaders were able to move
beyond emotional hand-wringing and
finger-pointing, more important long-term questions emerged.
Can business educational institutions learn? Are business schools able to exhibit the same
values, decisiveness, and flexibility that they expect
from their graduates? The move to questions such
as these also leads to the larger questions that
many business schools seem to have gotten away
fromwhy do business schools exist to begin with?
The shift to this imperative question brings a myriad
of opportunities, especially in light of the
economy. The economic crisis, in some way, has actually
set the stage for a reengineering of the rationale
of business schools altogether, those who embrace this opportunity might well enjoy the successes
to follow. The worldwide economic downturn is far from over and its effects on business schools
too early to judge. Nonetheless, this article
addresses the impact of the global economic meltdown
on business schools, specifically reviews some of
the short-termchallenges facing business schools, what important lessons might be learned
from these turbulent economic times, and what key actions business schools should take to
ensure their viability and long-term usefulness to
the communities they serve.
Like all other organizations traversing the turbulent global economy, the
first priority of B-Schools is survival, as a number of financial contingencies
make that an issue. This very survival has brought to the forefront many
questions, such as the impact on the recruitment process, program rationale,
courses being offered, and the successes and employability of the school's alumni. While
these may appear questions asked frequently of
business schools, during an economic time of woe,
the spotlight has greatly increased on such matters
as strong indicators of where things ought to and might be headed. As former Honeywell
CEO, Lawrence Bossidy noted, "To confront reality is
to recognize the world as it is, not as you wish it to
be, and have the courage to do what must be done,
not what you'd like to do." As IDEO Corporate
CEO, David Kelley similarly noted, "The role of
a Director is more complex and nuanced than any other in
the world of innovation. You are not just in charge
of today's operations. You are responsible for
making sure there is a tomorrow. |
