GenXmanager: Leadership for the Generation X Manager

I read a New York Times article a few weeks back that tackled this question. I recently Googled the topic and was surprised by the number of hits. As with any topic, opinions abound. Therefore, I feel compelled to offer my take on the whole situation.

Yes, MBA programs and business school are in part to blame for the downtown. However, like any crisis, there is never one contributing factor. MBA programs are threads in a tapestry of other factors. But, for the purposes of this article I’m only going to discuss MBA programs.

According to the New York Time’s article, the last time business schools really took a hard look at themselves was during the 1950s when the Ford and Carnegie foundations made a series of recommendations. These recommendations suggested that B-Schools become more “analytical and rigorous” in their curriculum. The pendulum might have swung too far in that direction.

As I read various articles regarding the culpability of business schools, I found that most critics blame business programs for teaching that businesses are in business for one reason and one reason only; to maximize shareholder value. Programs have focused heavily on a short-term, quarterly, bottom-line perspective. It’s all about the quantitative and not much on the qualitative. Robin Humphrey, in her response to a recent Harvard Business article, wrote,

“Talk to the vast majority of MBA graduates of any business school about the relevance of managing and leading people to achieve outcomes and a blank look descends over their faces. They don’t do people, as they cannot be measured in black & white terms; it’s all grey.”

What’s the prescription? I believe that MBA programs should not simply model what the business community wants but should help lead and guide the direction of business. To do this, business schools must:

1. Teach students to maximize stakeholder value.
   B-Schools and MBA program must help future business leaders understand that business is about being profitable AND being good stewards to their employees, their customers, the community in which they reside, and the planet. It’s called sustainability management.
2. Teach Corporate Social Responsibility; not ethics.
   My opinion is that ethics cannot be taught. B-Schools have been teaching ethics for decades and look where we are now. Instead, teach students to act in ways in which their organization can be socially responsible.
3. Teach that leadership is about both the “big picture” and “the details”.
   The Harvard Business article stated that leadership should not be separate from the hard, quantitative aspects of business. Leadership is about vision and execution. It’s about motivation and financial statements. It’s about strategy and managing projects.
4. Become learning organizations.
   B-Schools must continually survey the environment and adapt and change. B-schools must be nimble and quick. They must be forward thinking and drive innovation in thought and strategy. It’s frightening to learn that the last time business schools did a thorough self-examination was in the 1950s. It’s time to do this much more frequently.

The UB/Towson MBA is launching a new curriculum in Fall 2009. To keep this article short, I’ll defer the details to a future blog post. All I will say is that I’m proud that we’ve addressed the criticisms and will be preparing our students to be responsible leaders who will promote profitable, long-term, sustainable business practices for all stakeholders.