09:00 – 10:00 Plenary IV – MOOCs
After years of fierce war among technology superpowers we may be witnessing the first glimpse of peace in the industry. Last Thursday Elon Musk, Co-Founder and CEO of Tesla Motors –an American company that designs, manufactures, and sells electric cars and electric vehicle powertrain components- announced that his company will open its patent portfolio to help expand the market for electric cars worldwide (1). Musk tells in his blog: “Yesterday, there was a wall of Tesla patents in the lobby of our Palo Alto headquarters. That is no longer the case. They have been removed, in the spirit of the open source movement, for the advancement of electric vehicle technology” (2).
This decision has been described by some as “The Gettysburg Address for Entrepreneurship and Innovation” (3) and by others as an ingenuous move with lessons for Silicon Valley (4). Coincidently or intentionally, Musk’s decision coincides very timely with the new rules announced by President Obama to curtail CO2 emissions from carbon plants by 30 percent from 2005 levels by 2030.
In fact, despite the renovated excitement over electric cars, their market penetration has been reduced and, according to Musk, they currently represent less than 1% of the vehicle sales of major car manufacturers. True, there is an increasing sensitivity among customers towards the environmental impact of their traditional car's emissions. However, the relative higher prices of electric cars, costs of maintenance, lack of a wide network of electric stations to recharge batteries and lesser autonomy, among other reasons, make the option for electric vehicles still unaffordable for many.
Interestingly, one of the most salient advocates for electric cars has been LinkedIn Influencer Carlos Goshn, CEO of the Renault-Nissan Alliance, the company enjoying the largest market share in the production of electric cars with 100,000 units sold worldwide, more than the combined production of the other car manufacturers. In an earlier post in LinkedIn Pulse this year, Goshn called for a major move by all stakeholders in the automotive industry: “I believe that if we are to transform the car for a new era, we must address three major issues: safety, the environment and affordability. But the auto companies cannot do this alone. We will need to partner with one another, with governments and other industries if the car is to remain a source of prosperity, progress and freedom” .
Is Musk’s decision sound from a strategic management perspective or is he diluting the value of Tesla’s patents, a major asset of his company? It is worth mentioning here a key finding released in an academic paper of the 1980’s (6, PDF, 81 pages) and widely diffused at many business strategy courses at business schools. According to the opinions of an ample range of managers, the least effective way to benefit from new inventions or innovations in business is relying just on the protection of patents. The same study shows that the most successful way to maximize innovation is taking advantage of the lead time an exploiting the time-to-market advantage of being the pioneer in launching a new product or service. Other alternatives to protect innovation preferred by managers include climbing down the curves of experience, in order to reduce costs and offer competitive prices, as well as reinforcing sales efforts when launching a new product. Keeping secrecy and, particularly trusting in the legal shield provided by patents are the least reliable choices to defend innovation. The results of the mentioned study can be found in chart below.
Taking this into account, Musk’s decision can be considered strategically sound and may contribute to the spread of electric car’s technology and even to convert Tesla’s products in the standard adopted by other players in the industry. At the same time, it should be emphasized that Musk’s announcement does not entail that Tesla is giving away its patents. In his own words, it means that they “will not initiate patent lawsuits against anyone who, in good faith, wants to use our technology” (7). It is thus to be determined the reach of “good faith” uses in the open source access to Tesla’s technology, and the company retains its right to litigate with those players that may compete unfairly.
Clearly, Musk’s announcement marks a decisive shift in the culture of patent protection in technology related industries. In past years, patent litigation flourished at the expense, in the opinion of many, of fostering innovation and progress and benefiting mostly lawyers. A clear case is the upsurge of patent trolls, those companies owning and enforcing patent rights against infringers, but without exploiting the full business potential of patents, thus impeding development and innovation.
Tesla’s move to open source technology is inspiring, particularly for companies operating in rapidly evolving industries where the patent protection system lags behind actual innovation and market development. At the same time, it is arguable whether it would be transferable to other industries with huge research and development costs over time, like the pharmaceutical sector, or to organizations like universities, which may need different mechanisms to promote and capitalize on their intellectual property. This may be one of the reasons why Senator Leahy recently decided to drop the patent reform bill, which aimed at reducing litigation by patent assertion entities and patent trolls. However, he declared “that If the stakeholders are able to reach a more targeted agreement that focuses on the problem of patent trolls, there will be a path for passage this year and I will bring it immediately to the (Senate Judiciary) committee” (8).
Regardless what the future legislation brings, I believe that companies will better protect and capitalize on their innovation if they engage in collaborative schemes and alliances with other players in the industry, rather than in defensive or litigation strategies. In the words of Musk: “Technology leadership is not defined by patents, which history has repeatedly shown to be small protection indeed against a determined competitor, but rather by the ability of a company to attract and motivate the world’s most talented engineers. We believe that applying the open source philosophy to our patents will strengthen rather than diminish Tesla’s position in this regard”. (9)
(5) Carlos Ghosn, LinkedIn, Feb. 19, 2014, "We Can Ensure The Car Remains a Vehicle For Progress"
Photo: Heisenberg Media / Flickr
English as the lingua franca of higher education? - University World News: http://t.co/wrHnmlBpOh— Santiago Iniguez (@SantiagoIniguez) November 24, 2013
Santiago Iniguez - Dean of IE Business School and President of IE University
Santiago Iñiguez, presidente de IE University y decano de IE Business School, presenta las conclusiones a las que llegó el conjunto de expertos de todas partes del mundo que participaron como ponentes en la cuarta conferencia “Reinventing Higher Education” organizada por IE University en Madrid. El papel de las potencias emergentes, la reforma en Reino Unido y los nuevos modelos de educación online fueron los temas tratados en la conferencia, que trata de crear debate y esclarecer en lo posible el rumbo de la educación superior.
Santiago Íñiguez es Doctor en Derecho y MBA por IE. Ha trabajado como consultor de dirección de empresas y ha desempeñado una actividad relevante en el ámbito de la calidad en la formación ejecutiva. En la actualidad, Íñiguez compagina sus responsabilidades como Decano de IE Business School con los cargos de Presidente de EQUAL (European Quality Link), consorcio que integra las asociaciones de acreditación de escuelas de negocios de Europa; Miembro del Consejo Internacional de AMBA (Association of MBAs, Reino Unido); y Presidente de IE Fund en Estados Unidos.
Looking forward to attend IE Venture Day Mumbai next Saturday and catching up w/ friends and amazing entrepreneurs http://t.co/3k2Ez0hPNv— Juan J Güemes (@juanjguemes) October 23, 2013
THE FIRST business schools were founded in the US around the beginning of the 20th century. A century later, management education became truly globalised when the 2009 Financial Times ranking of MBA programmes included three European and one Chinese in the top 10.
A year later, first place went to the London BusinessSchool, unseating Wharton, which had alternated the top laurels with Harvard. In the same year's executive MBA ranking, six of the top 10 programmes were European or offered jointly by US and European schools.
US schools' loss of hegemony has been also highlighted by the increasing flow of American MBA students studying abroad...
There is no magic formula for turning somebody into a consummate manager. Good managers are made over time, based on the systematic exercise of good habits and routines, and through the accumulated experience of their sector and their relationships.
To reach the heights of management excellence requires discipline and hard work. It is not achieved simply through the passage of time.
Nevertheless, universities and business schools can help lay the foundations for this process by providing a more integrated and rounded education to current and future managers.
The extreme specialisation developed in universities in the past has been criticised because of its undesirable consequence, namely ‘silo syndrome’, whereby academics deal only with colleagues in their subject and students gain only narrow perspectives on practical and theoretical knowledge.
Universities can combat this by restoring the value of the humanities in the tradition of American liberal arts colleges. Making the humanities a core part of all degrees will cement the learning experience and develop open-minded and well-rounded graduates.
I also believe that good management is not just about implementing good managerial techniques. It is about leading people, understanding collective behaviour and developing a strategic vision.
These managerial skills are genuinely related to the humanities, which is why I support the integration of different management disciplines within the context of the social sciences and the humanities.
Our experience at IE University shows that including humanities courses in management programmes enhances the whole learning experience. We have introduced subjects and sessions dedicated to the humanities in all programmes, from the bachelor in business to the MBA programme and executive education.
Ours is a two-pronged goal. On the one hand we hope to include management studies within the broad spectrum of the social and human sciences, with the aim of highlighting the inter-connectedness of the models, concepts and theories of a range of disciplines, thus leading to a better understanding of the social role of business.
The aim is also to create well-rounded managers – enlightened and cultivated directors who have a working knowledge of the arts and history of their own and other cultures, thus better enabling them to lead multicultural teams.
We believe that studying history enables directors to take better business decisions based on an understanding of the experiences of the past. Similarly, an understanding of the history of art can strengthen students' powers of observation and perception, which in turn enables them to take more reflective or considered decisions, thereby offering a counterbalance to the action-oriented approach of most directors.
In addition to revisiting the role of humanities in management programmes, we need to find new ways of identifying talent that go beyond conventional forms of intelligence.
One of our biggest challenges for the future is to come up with alternative ways of identifying diverse talent, and consequently developing the means to bring out the best in students. This will significantly expand the pool of potential applicants to business schools and other higher education institutions while helping these centres identify the candidates that are right for them.
Moreover, we need to develop new teaching methodologies and approaches to learning that bring out the entrepreneurial and innovation skills of management students, along with their interpersonal and leadership skills.
This is without doubt the next major challenge with regard to teaching in business schools, and in order to meet it we will have to work closely with educationists and psychologists. Such an approach will also have a tremendous impact on our students and on management in general.
First, it will amplify the pool and profile of potential applicants to business school programmes, attracting those entrepreneurial candidates who were previously reluctant to start along or quick to exit the academic path. But second, and most importantly, it will make management programmes become transformational experiences suited to each student's specific form of intelligence.
Opening up the curriculum to the humanities while developing new teaching methods for identifying individual aptitudes presents promising new horizons.
I believe that the changes outlined here are essential not only for the future relevance of business schools, but also for business graduates who look forward to becoming entrepreneurs or to joining the current challenging jobs market.
* Santiago Iñiguez is president at IE University and dean of the IE Business School in Madrid. His last book, The Learning Curve: How business schools are re-inventing education (Palgrave, 2011), explains the changes being undertaken in the sector worldwide. This article is based on a presentation he gave at the “Going Global” conference earlier this month.
SANTIAGO INIGUEZ, president, IE University, talks to Karan Gupta, study abroad consultant, about the challenges facing higher education worldwide
What are the key challenges facing higher education today?
It depends on the region you analyse because we see that the focus has now moved from the Western hemisphere to Asia and so the problems in Europe and in the US are different from those that universities face in Asia or Latin America. For example, if you look at Europe and US, you'll find that we are attending to problems of governance at most universities, financing models and how to bring innovation into the reality and maximise the learning process of users and technology in the learning process. On the other hand, if you look at Asia or Latin America (which has a lot of similarities vis-a-vis higher education ), I guess that the challenges are how to build up prestigious accredited institutions with global status, how to develop their own research and contribution to knowledge from their distinctive perspective and how to build up sustainable models of universities that can transform the world of higher education. So both worlds are complementary and up until now Western universities have been to some extent an inspiration for Asian universities. In future, it may be reverse where Asian universities will become references for many Western universities.
Any steps that you have taken to help overcome the challenges?One of the steps I have taken is to organise the Reinventing Higher Education conference...
For the first time, the annual international conference on “Reinventing
Higher Education” gave prominence to the rapidly transforming Arab
world. Changes in the higher education landscape – driven by new
technologies, shifting global forces and funding cuts – were other
The event took place from 22-23 October at Madrid-based IE University, which is a private non-profit business owned by the Instituto de Empresa SL.
“The idea is to look at the university as a whole from all angles, and try to suggest reforms for the future, for the better,” said Santiago Iñiguez, president of IE University and chair of the conference.
He pointed out that the Arab world comprises more than 400 million people in 22 countries and is experiencing profound transformation. It was significant, he said, that this change “is being supported by both public and private institutions, including individual philanthropists”.
“Philanthropy has been increasing in the Arab world, as 40- to 50-year-olds who, for example, have been very successful bankers, saw that guys of 18 were willing to give their lives for change and then thought, ‘What can I do?’” said Salah Khalil, director of the Alexandria Trust, which contributes to restoring world-class standards in education across the Arab region. (DeansTalk, October 23, 2012)
“Everyone was really excited about the Arab Spring but the reality of the situation is that we need an ‘Educational Spring’,” said Khalil.
“This is because ‘perverse institutionalism’ persists in the Arab world, whereby an organisation, whether it is a mosque or a university department, is set up to do something – and it does the exact opposite. Our biggest challenge is to create structures that can change this.”...
Santiago Iñiguez, President of IE University, interviews Arnoud De Meyer, President of Singapore Management University, about the success of Asian Universities in the Global Higher Education Market and the key factors that have helped Singapore to become an international education hub.
The interview took place at the IE Madrid Campus during the Reinventing Higher Education Conference organized by IE University, where experts gathered from international institutions like Oxford University, Brown University, the World Economic Forum, Wikipedia, Alexandria Trust and the British Council to discuss the environment surrounding universities nowadays. This includes things like the demand in a globalized world, the strength of emerging markets like Asia or the Middle East, and innovation in teaching methods.
Santiago Iñiguez (Wikipedia entry) is dean of IE Business School.
Comment online: www.ft.com/soapbox
Asked what type of student they are looking for, most business school deans have the same answer: the best.
It is natural to want the most promising applicants. But are we really talking about and competing for the same group of potential students? At first glance it would seem so, given that the admissions criteria of business schools is so markedly similar – making for a zero-sum game. Each student can only go to one school.
(MBA50.com) If you read a manual of medicine from as recently as the 1920s, you realize that bloodletting was among the most common medical practices to make patients feel better. We now think of these remedies with horror, as more often than not they made the patients situation considerably worse, if not fatal.
So when we now read some of the advice of financial managers in the ’90s about mortgages and the diversification of risk, the parallel is obvious. So is there a need to reinvent management?
In this interview with Santiago Iñiguez, Dean of the IE Business School in Madrid, he looks at the criticism that business schools have faced for their role in the recent financial crisis, and the need to do better and more relevant research to understand how organizations behave. “This is a science in the making,” he argues, “and business schools need to adjust their curriculum, bring in new knowledge and ways of thinking to meet the demands of society.”
Author of a new book, “The Learning Curve“, Iñiguez prescribes three areas to re-invent business education:...
IE Business Publishing, tiene el placer de invitarle a la presentación del libro: “The Learning Curve"
Escrito por Santiago Iñiguez de Onzoño, que se celebrará el martes 27 de marzo de 2012 a las 19,00 horas.
Presentación del Acto e Introducción:
Diego del Alcázar Silvela, Presidente de IE
- Carina Szpilka, Directora General para España, ING Direct
- Alberto Artero, Director General y Analista Económico, El Confidencial
- Fernando Barnuevo, Presidente de Antiguos Alumnos, IE Business School
- Santiago Iñiguez de Onzoño, Decano, IE Business School y Presidente, IE University
Al finalizar la presentación, se servirá un vino español
It is almost obligatory for business schools to trumpet their love of innovation, but Spain’s IE has a better claim than many for trying fresh approaches to business education.
Established in 1973 in Madrid, and now ranked as one of Europe’s leading schools, IE was among the first to offer an executive MBA 20 years ago, and later spearheaded a move into online education.
The school’s international reputation now helps it attract about 2,000 students from more than 90 countries each year, and it has built an alumni network of more than 40,000 with links to 25 offices spread from India to Chile.
“When we ask our students why they chose IE, they often say it is entrepreneurialism first, and diversity second,” says Santiago Íñiguez de Onzoño, the dean. “We have one of the highest-diversity environments, not just in terms of the numbers of passports, but in terms of gender, culture and different visions of the world.”
These aims are well demonstrated by IE University’s cross-disciplinary approach to teaching law, architecture and business and by the combined executive MBA programme with Brown University in the US, which sees students take courses in social sciences, literature and philosophy...
(Santiago Iniguez' recent book thelearningcurvebook.com)
European universities should look to the US for a route back to excellence, argues Santiago Iñiguez de Onzoño
Greece was home to the Academy founded by Plato in the 4th century BC, the first Western higher education institution. Bologna in Italy was the cradle of the first university in the 11th century. One millennium later, these two countries, along with the Republic of Ireland, Portugal and Spain, have seen their governments swept away by the current economic crisis. This also implies changes in the future political agendas for higher education, particularly given the significant cuts expected to public budgets. It is very likely that similar reforms and budgetary adjustments will occur in countries such as France and Belgium in the medium term. Inevitably, the economic interdependence within Europe will spread budgetary adjustments to most countries in the continent, including those that stand resilient today.
One of the most severely affected areas of austerity policies will certainly be public education. But, as well as posing threats, times of crisis bring many opportunities that could in fact help to rejuvenate Europe's universities...
LONDON — It always pays to do your homework. And as Jeremy Bedzow, an M.B.A. student at the IE University in Madrid, can attest, in business school it often pays to volunteer — especially if you are looking for rewards that go beyond the bottom line.
Working with a team of IE students in Madrid, Mr. Bedzow helped Microsoft to develop a model program to provide training in information technology as well as the soft skills required to function inside the corporate world.
Known as ITCAN Academy, a pun on the Arabic word for perfection, itqan, the course recruited 100 university students, all of whom had to be Saudi nationals...
“One of our objectives at IE is to educate global citizens,” Mr. Íñiguez (Dean) said. “We try to instill civic virtue through the whole curriculum. Instead of having a module on ethics, we believe every course, every subject, every professor, should address these issues.”..
“That diversity also needs to be part of the learning process,” Mr. Íñiguez said. “We need to get beyond gender, or the number of passports in the class, and make sure our graduates are genuinely comfortable with different views and different values. We need to help students get rid of their arrogance.”
Dean Dipak Jain "Between them are gaining international intellectual leadership in the sector " (referring to books by
Santiago Iniguez de Ozono believes that the gap between the poor and the rich can become smaller with the help of education. ...
IE University, Madrid (Segovia), October 18, 2011
Following the success of the first event held in Segovia on May 4, 2010, IE University, in collaboration with the Chronicle of Higher Education is organizing the second edition of the Conference on ‘Reinventing Higher Education: The role of the University in a Global Society’, which will take place in Madrid at IE campus, October 18th, 2011. The aim of the conference is to gather university administrators, policy makers, business entrepreneurs, academics, student representatives and media experts to discuss the current status and future evolution of Higher Education (HE), and to debate the direction in which research, learning, governance and management of universities should now go. The conference is organized in partnership with The Chronicle of Higher Education, No. 1 source of news, information, and jobs for university faculty members and administrators.
Via @SantiagoIniguez, 31st January, 2011
Plato and Aristotle treated morality as a genre of interpretation. They tried to show the true character of each of the main moral and political virtues (such as honor, civic responsibility, and justice), first by relating each to the others, and then to the broad ethical ideals their translators summarize as personal “happiness.”...
Santiago Iniguez, Dean of IE Business School.
It is time to include a poem in this blog’s summer series “Management and Literature”, and I am sure you are familiar with the one that I selected. Kipling’s “If”, originally written for his son, has been one of the most recited and quoted poems in recent times. I have heard it at numerous toasts and speeches made by managers. It is fresh, positive, forward looking and humane. You have probably identified yourself with one or some of its verses at some stage in your career. I hope you enjoy:
If you can keep your head when all about you
Are losing theirs and blaming it on you,
If you can trust yourself when all men doubt you
But make allowance for their doubting too,
If you can wait and not be tired by waiting,
Or being lied about, don't deal in lies,
Or being hated, don't give way to hating,
And yet don't look too good, nor talk too wise:
If you can dream--and not make dreams your master,
If you can think--and not make thoughts your aim;
If you can meet with Triumph and Disaster
And treat those two impostors just the same;
If you can bear to hear the truth you've spoken
Twisted by knaves to make a trap for fools,
Or watch the things you gave your life to, broken,
And stoop and build 'em up with worn-out tools:
If you can make one heap of all your winnings
And risk it all on one turn of pitch-and-toss,
And lose, and start again at your beginnings
And never breath a word about your loss;
If you can force your heart and nerve and sinew
To serve your turn long after they are gone,
And so hold on when there is nothing in you
Except the Will which says to them: "Hold on!"
If you can talk with crowds and keep your virtue,
Or walk with kings--nor lose the common touch,
If neither foes nor loving friends can hurt you;
If all men count with you, but none too much,
If you can fill the unforgiving minute
With sixty seconds' worth of distance run,
Yours is the Earth and everything that's in it,
And--which is more--you'll be a Man, my son!
管理作为一项活动无处不在，它几乎覆盖了人类所有的活 动。但是迄今为止，我们尚未看到统一的管理者专业协会 的出现。许多人现在开始相信，为了坚持和推广标准，这 一切必须进行改变。圣地亚哥· 伊尼格斯(Santiago Iniguez) 就此展开了讨论。(translation)
Global Focus in Chinese will be online tomorrow and hard copies will be available in a couple of weeks.
Do we need management guilds? Dean Santiago Iniguez' contribution in Ambition, AMBA's magazine.
(Ambition is the quarterly newsletter from the Association of MBAs that keeps our members – international alumni and students from our accredited schools – informed about their activities and MBA-relevant updates and articles. See how you could reach this audience by advertising in the next Ambition.)
The tantalizing idea of professionalizing management
Historically, management has never attained the status of a formal profession, in the sense of setting up a guild or association by managers. In large part, the reason why there are no managers’ guilds is due to the flexibility and presence of management throughout such a wide range of activities. Would it really make much sense for the head of a hospital’s surgery department, the partner-director of a law firm, the founder of a high-tech start-up company, and the CEO of a consumer products manufacturer to create their own guild or any other type of association? They are all managers, and it may be that some of them have MBAs, but their shared professional interests would not extend much beyond ideas on how best to manage a budget or to motivate their workforce. In all likelihood, they are going to be more interested in learning all there is to know about their respective professions— medicine, architecture, law—and applying these techniques, tools, and ideas on management within the framework of these professions...
Santiago Iniguez , rector, IE University, Spain, tells Tirna Ray that the change is in keeping with the times:
Why did IE Business School, a well-known brand, transform into a university?
It was our vision more than the need. Given the convergence of higher education and the Bologna process, we thought of the bigger picture and that is what propelled the transition of IE Business School into IE University. The university is the evolution of IE Business School's mission to shape a unique centre for higher education learning and innovation in Europe. We have a distinctly international approach and one of the major priorities is to bring together faculty and students from around the world. We recognise and acknowledge the fact that in these global times, we need to offer a holistic learning experience to our students that covers management skills, an element of innovation, an entrepreneurial mindset, a global vision and social commitment.
Was there any concern that it would dilute the 'Business School' brand?
A lot of thinking, deliberation and discussion went behind the decision. Further, we decided to enter only into those areas in which we were convinced that we could excel. We chalked out a clear charter for the next 15 years which not only involved the curriculum but also substantial tie-ups and partnerships with the lead institutes across the world.
What is the vision of the university?
An IE University education focuses on entrepreneurial vision, technological innovation and international mobility along with a hands-on experience. The idea is to produce global citizens, rather than producing graduates who are specialised in specific disciplines. With our university located in the 15th century monastery of Santa Cruz la Real, in the city of Segovia, a site that has been a crucible of different cultures and that embraces tolerance and knowledge, our vision goes beyond the given boundaries of academics and ignites the desire to explore.
The bachelor's degrees at the IE University are taught in English and Spanish. Our strength is an innovative blended methodology, which offers a classroom experience along with online modes of delivery in the fields of architecture, art history, biology, business administration, communication and psychology and tourism management.
What is special about the academic content of IE programmes?
Our programmes equip students to put their acquired knowledge into practice. Workshops and facilities at the university include the applied psychology centre, art rooms, biology laboratories, digital editing rooms and the language centre to mention a few. The university aims to be responsive to the contemporary needs and values of the global market. The learning process encourages leadership and humanistic skills in our students through the core IE module, which includes key areas such as business leadership, interpersonal skills, ethics and humanities.
Do you have any plans to launch an overseas campus in India?
We do not disregard the possibility of entering India in the future. But, we believe that every country has its own specific needs. In order to target the ideal market in India, we would rather go for strategic alliances. In the next couple of years, we may work towards blended programmes - with face-to-face periods in India and online modules.
Strategic, steady, detached even, Vicente del Bosque, Manager of the Spanish football team, is the archetype cool, calm and cerebral football coach. His temperament is typical of Salamanca, the city where he was born.
He prepares the strategy for each match carefully, drawing in his notebook the arrangements for each position of the team players in the field. He or his assistants bring these notes to the pitch and they often refer to them during matches. If you look at the notes they are similar to the moves in a game of chess. He believes that playing well is a result of a carefully developed plan. For him, strategy takes priority over passion. He rarely shouts or expresses his emotions, keeping his cool instead. He is highly respectful towards the competition and often praises the strengths of rivals, both before the match and on winning. He very rarely accepts tributes and refers all congratulations to his team and the players. He is probably a prime example of elegant, effective and collaborative leadership. Unlike more outspoken showmen like Flavio Capello or José Mourinho, Del Bosque adopts a low profile and a somewhat austere attitude, which is proving to be a more intelligent and successful approach in the long run.
Del Bosque was a football player in his early years and believes that games are won in the middle of the field, as his positioning of the Spanish football team players on the pitch shows. He was also coach of Real Madrid Football Club between 1999 and 2003. During this time, he steered the club to its most successful achievements in modern history, taking it to two UEFA Champions League titles in 2000 and 2002, two domestic La Liga titles in 2001 and 2003, a Spanish Super cup in 2001, a UEFA Super Cup in2002, and the Intercontinental Cup in 2002, as well as ensuring they finished among the last four of the UEFA Champions League every year he was in charge. Consequently, his replacement, just after the Real Madrid won its 23rd Spanish League Cup, sparked rumors about his differences with Florentino Perez, the then President of the Club.
Del Bosque’s attitude and leadership style evidences how important it is to show sportsmanship and courtesy on the coach’s bench. Football is not all about passion, rivalry and emotions. It is, or rather it should be, primarily a sport and an opportunity to bring out the best in people. In short, we need more examples like Vicente del Bosque.
: And, according to Santiago Iniguez, dean of IE Business School in Madrid, Spain's brilliant run throughout the tournament can largely be attributed to the management style of Vicente del Bosque.
"He's the archetypal cool, calm, cerebral type," says Iniguez.
"He believes that playing well is a result of a carefully developed plan. For him, strategy takes priority over passion. He rarely shouts or expresses his emotions and he very rarely accepts tributes, referring all congratulations to his players.
"He's probably a prime example of elegant, effective and collaborative leadership. And how can you argue with a leadership style that won the World Cup?"
Referring to the Bologna process, Santiago Iniguez, Rector, IE University, Spain, says that changing times demand new academic paradigms. “A flexible curriculum fosters a modern, multi-disciplinary education,” he says, adding that programmes specifically designed to train leaders by equipping them with the skills and values will shape a 21st Century society.
Zhong-Ming Wang, dean of Zhejiang University Business School (Hangzhou, China) on 5th May, 2010 at IE Business School in Madrid.
Management can be one of the noblest professions in the world. It creates growth, wealth and development in society, provides jobs, fosters innovation and improves living conditions. Good management is one of the best antidotes to most of the world’s illnesses since it promotes convergence and understanding among civilisations. In times of crisis what is needed is more entrepreneurs and better management. At the same time, the current circumstances provide the arena where true leadership is tested and where managers can identify new opportunities or reinvent their existing businesses: it is time for the survival of the fittest, in Darwinian terms, or for the birth of new species that better adapt to this new environment. Times of crisis provide the breeding ground for entrepreneurs and innovators and many major companies, like Google, were created in adverse circumstances.
Santiago Iñiguez de Onzono: Dean, Instituto de Empresa (IE) Business School
It was the best of times, it was the worst of times (…) it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us…" These familiar lines of Charles Dickens' "A Tale of Two Cities", one of the most celebrated literary openings ever written, seem very applicable today, as they were to the French Revolution – the context of the novel – and even to Dickens’ own times.
Click here for the article of The Times Higher Education, 7th January.
Many in the humanities feel that their disciplines and relevance are under attack. Matthew Reisz asks if 'the best that has been thought and said' still has a place in today's universities.
Whatever is happening in America, the liberal-arts model is being taken up enthusiastically elsewhere. Santiago Iniguez de Onzono is rector of the IE University in Segovia, which offers English-language courses in architecture, biology and communications as well as MBAs and other management qualifications clearly designed to create business leaders.
"We believe the American system is very strong," he says. "Specialisation begins too early in Europe, and it doesn't allow for the development of the person through a well-rounded education. Business people need to learn more about history, anthropology and so on because their decisions affect the lives of many others."
All IE students are now required to take a ten-class "world awareness seminar", supplemented by a wide range of elective courses. It can only help that these include a mixture of classical and contemporary culture: "watching a film by Michael Moore might be more relevant than learning about Gothic cathedrals", observes the rector.
It is also possible to integrate culture with core competencies. IE brings in actors from the Globe Theatre, for example, to teach Shakespeare alongside practical breathing techniques and communication skills.
In broad terms, IE's policy represents a conscious educational philosophy rather than a direct market-driven response to the demands of students and recruiters. "We see students as the raw material rather than as clients," explains Iniguez, "and decide to a large degree what is best for them. Lots of MBA students might prefer an extra unit in finance rather the humanities. Yet it can often help financial managers, who tend to be very action-oriented, to become more reflective by taking a course in design.
"It took a long time for corporate recruiters to value business ethics as a necessary skill, so we are trying to anticipate other things they will need in the future (such as well-rounded individuals with broad cultural awareness). In Europe, we have developed universities that are too specialised. We need to bring the benefits of a general education and the liberal-arts tradition."
Some of IE's corporate partners are beginning to get the message, claims Arantza de Areilza, dean of the School of Arts and Humanities. "They feel that it is essential for students to gain a global mindset and language skills," she says, "and they don't just want 24- or 25-year-olds with very specialist training. They are looking for a critical spirit, sensitivity to other cultures, writing skills and strong analytical skills.
"We also created specially tailored courses for the top management at (media companies) Telecinco and PubliEspana that touch on issues of migration and the impact of new technologies on our daily lives. We need to extend the view of our students beyond what more traditional technical studies teach." The humanities can answer some of these needs.
AS THE clamour grows for more regulation to address the corporate failings that led the world into a two-year recession, business schools sense a chance to drive the agenda. By producing academic research that can inform the debates within Washington and Brussels, there is a chance to become relevant once again. But business is also changing its mind about it wants from MBA students. The super-confident, gung-ho leader, that was once their calling card, has fallen out of fashion. So can schools adapt to a changing world? To find out, The Economist spoke to two prominent business deans from either side of the Atlantic: Santiago Iñiguez de Ozoño, dean of Spain’s IE Business school, and Paul Danos, dean of Dartmouth College’s Tuck School of Business in America.
How do business schools remain relevant in today’s changing world?
AS THE clamour grows for more regulation to address the corporate failings that led the world into a two-year recession, business schools sense a chance to drive the agenda. By producing academic research that can inform the debates within Washington and Brussels, there is a chance to become relevant once again. But business is also changing its mind about it wants from MBA students. The super-confident, gung-ho leader, that was once their calling card, has fallen out of fashion. So can schools adapt to a changing world?
To find out, The Economist spoke to two prominent business deans from either side of the Atlantic: Santiago Iñiguez de Ozoño, dean of Spain’s IE Business school, and Paul Danos, dean of Dartmouth College’s Tuck School of Business in America.
Has the role of the business school changed as a result of the economic crisis?
Background to interview:
This interview between Santiago Iniguez, dean of IE Business School and Mårten Mickos took place two months ago and the compromise to publish this today was made not knowing the European Commission's preliminary objections to the Oracle 7.4 B$ acquisition of Sun due to the MySQL part of the deal. (Here are a list of commentaries related to the proposed acquisition). The European Commission faces a January 19 deadline on whether to approve the planned takeover of Sun by Oracle, the world's second-largest business software maker.
Here are two posts on this blog about Marten and MySQL:
Entrepreneur series (3) - Mårten Mickos, Finn and ex-CEO of MySQL AB (and ex-VP of Sun's Database Division), 25 May 2009.
Marten Mickos letter to EU: Approve Oracle-Sun deal, 9 October 2009.
Santiago Iñiguez: What management thinker has most influenced you?
Peter Drucker was one of the most brilliant thinkers on management and leadership in the past one thousand years. His ideas are absolutely outstanding.
In these uncertain times what advice would you give to someone thinking of setting up their own business?
I like an answer that Linus Torvalds once gave about Open Source. Somebody asked him “Linus in what circumstances should I consider becoming an Open Source developer,” and he replied “only if there is nothing else in the world that you can see yourself doing”.
There are times when too many people try to be entrepreneurs. This was apparent during the Internet bubble when everybody was cheering on entrepreneurs, including governments who gave financial assistance. Indeed there were many who were not fit for it who tried and failed. Although a part of entrepreneurialism is that you try and fail and then you rise again, there were people who just really didn't have the mindset.
You have said that different types of personalities can be successful CEOs, what is the one trait that every successful CEO should have?
The one common trait of successful CEOs is that they know themselves and are confident about themselves. You also have to be convinced and committed to be an entrepreneur. It may look nice when you hear the success stories, but being an entrepreneur or CEO is very hard and nerve-wrecking work that typically takes many, many years to reach fruition.
As a CEO, everything I did was people related, and when it is people-related, it is also related to your own persona.
Click here for the article of the Financial Times, June 10 2009.
Last week, US President Obama defended government intervention in GM, the ailing automotive giant, as the company was filing for Chapter 11 bankruptcy protection. The US Government plans to own a 60 per cent stake in the company, something inconceivable in the past three decades.
Given the protagonist role of governments in business today and the foreseeable structural and cultural changes of the management landscape, business schools must adjust and explore a new paradigm for their relationship with government.
As governments become pivotal players in the economy not only as regulators, suppliers or customers, but also as shareholders and investors, entities such as public-private partnerships may well offer opportunities for research, teaching and consultancy and possibly suitable careers for MBA graduates.
It is interesting to note that the widespread management tool designed by Professor Michael Porter, called “The Five Forces that Shape Competition,” (taught in many business schools) depicting the major agents that determine a sector’s profitability, such as suppliers or new entrants, did not count the government among them. However, the circumstances of the present crisis anticipate a more intense interaction and greater overlapping between companies and governments, a blurred frontier between what is public good and what is private interest.
Historically, American and European business schools have put a different emphasis on stakeholders in strategy formulation and decision-making. Two decades ago, references to stakeholders in the US were discredited as borderline communist; the only relevant constituency for managers was shareholders. Conversely, European business schools have developed out of a very different management culture, open to a wider array of stakeholder groups beyond shareholders.
For example, the European business environment is characteristically regulated and governments have a decisive presence. Often as major shareholders in big companies but also through other instances such as awarding licenses, fixing tariffs, pre-emptively approving mergers or acquisitions or keeping various other prerogatives over companies’ decisions. For example, in Germany the law determines that unions should have a representative in public companies’ boards. In France the word “dirigisme” is often heard amongst French managers, referring to government’s strong interventions in the market.
There are some advantages for business schools in this new world of the resurrected “visible hand”. Firstly, civil servants, public administrators and politicians could become an increasingly relevant applicant pool for degree and custom programmes. Given the participation of governments in business through bail outs and regulation, government workers such as civil servants will need to update their knowledge and skills to run and understand these new functions effectively.
One area of big potential development is public entrepreneurship that is, preparing public officers with the mindset of creating value for citizens. Equipping public servants with an entrepreneurial, innovative mindset should help them to identify and create opportunities, a more proactive approach rather than just administering public resources. In fact, most management ideas and techniques can be translated into government practices, something that explains the growth of MPA (Master in Public Administration) programmes in recent years.
Second, CEOs and managers should realise the increasing importance of nurturing creative relations with governments and other stakeholders at large. A recent study at IE showed that CEOs at leading Spanish companies dedicate more than 60 per cent of their time to dealing with their company stakeholders - governments, media and opinion makers, unions, customer associations, NGOs and professional networks. The spheres of the private and the public are blurred and the profile of managers is becoming closer to that of politicians.
New frameworks are being researched by business schools to look at how to manage a broader array of stakeholders and create competitive advantage through these relationships. At some institutions one such area of research is described as non-market strategy. This calls for corporations to look beyond the traditional confines of the market (competitors, price etc) and find opportunities through interaction with groups such as government, regulators, NGO’s, the media and reshape markets in their favour. A number of corporations do this well, with a strong ability to manage these interactions, but many others are going to have to develop these attributes very quickly.
Yet business schools must not only research and teach these new approaches but practice them as well, as the management education sector faces greater scrutiny from a wider group of stakeholders than at any time in its history.
Santiago Iñiguez de Onzono is dean of IE Business School.