The Wall Street Journal sounded the death-knoll for business
schools back in 1985. Applications were dropping. Mass closures were on the
cards. The same headlines have appeared periodically since. Eight years later
the New York Times headlined with “Business Schools Hit Hard Times Amid Doubt
Over Value of MBA”. Last year it was Forbes asking “Is the MBA Obsolete?”
If
you scan the latest stories on business sites and in magazines, it seems to be
in fashion to give the impression that innovation and talent trumps education.
But is it true?
What is true is that the nature of business has changed.
Lines of communication have evolved. Globalisation has opened up new markets
and competition is fierce. Innovation is now a global catch-cry and anyone with
a half-baked idea is trying to sell it. Yet we are still short of quality
business managers.
In reality, it isn’t a competition between natural talent
and formal education. We need both. What is important is that business schools
adapt their style of teaching. They must ensure our next generation of leaders
are learning techniques relevant to today. In America alone, 10,000 baby
boomers retire every day. These are the people who have been our business
leaders for the past 30 years and we are struggling to replace them.
Business schools know this. They also know the demands on
modern managers are unique in the information age. Yale rewrote its curriculum
back in 2006 and continues to regularly review it. Wharton rolled out a whole
new plan last year. We are seeing a shift to customised courses tailored for
21st century enterprise. There is a greater focus (particularly in North America) on leadership, trouble-shooting, problem
solving and communication skills.
Business isn’t just about brilliant product, it’s about
people (ideally, both brilliant). Success will come from ensuring that young
people who have chosen business as their career have the right knowledge,
skills and attitudes to lead.
