Management Education Needs to Evolve Following Recession

A study conducted by a Canadian business school concludes that failures in management education are partly to blame for the global economic crisis.

Leadership on Trial: A manifesto for leadership development, conducted by the Richard Ivey School of Business at the University of Western Ontario, explains that, “In the wake of the financial markets meltdown, much criticism focused on business schools and their graduates.

“Whether these criticisms are justified or not, recent economic events suggest everyone involved in management education must do a pulse check and consider in what way the content, delivery and potential consequences of their programs will influence how future business leaders see their roles and responsibilities.”

Carol Stephenson, dean at Ivey business school explains to TopMBA.com that many leaders feel that once they have reached what they see as the peak of their careers, the learning process is over. However, the report found that more effective leaders considered the learning process to be on-going, as business practises continue to evolve.

“[Successful leaders] were committed to the hard work of leadership and continuous learning,” she says.

Key areas for progression

Having conducted roundtable discussions with over 300 senior business, public sector and not-for-profit leaders around the world, Ivey’s report concludes that action is needed in multiple key areas.

With regard to business schools, the report advises that management educators need to emphasize studying economic and business history, as well as encourage students to contemplate the ethics of the decisions they make.

Current leaders should also be “the strongest advocates of anticipatory leadership and the prime enemies of complacent thinking,” with open, constructive criticism in the corporate environment encouraged, the report explains.

Evolution of MBA programs

While emphasizing that he feels management education was far from a major cause of the recent global economic problems, Dr Robert Owen, director of accreditation and business school services at the MBA accrediting body AMBA, reveals he has noticed significant changes in MBA programs since the recession began.

“Most business schools are making changes, especially in Western Europe. They are making sure that top executives are aware of responsible management and the implications of [not practising it],” Owen says.

In order to encourage business schools to place an even greater emphasis upon ethics, AMBA recently reviewed their criteria for assessing MBA programs.

The review included many changes in various sections of the accreditation process, Owen explains. “Schools must show the purposes and outcomes of their programs, and things like producing managers that are aware of ethics are a big part of this process.”

“Many business schools are increasing their emphasis on ethics,” says Stephenson. “At Ivey, we have incorporated discussions of values throughout the program – not focusing them in just one course. It’s important for faculty to be strong role models for the students.”

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