What The Entrepreneur And The MBA Taught One Another
Two topics that I frequently see discussed in online forums, blogs, and articles are entrepreneurship and MBA degrees. In such venues, perspectives and responses are often very polarized, and it would not be unusual to see different camps characterizing the relationship of entrepreneurship to MBA training as either highly relevant or highly irrelevant to one another.
Rather than taking an argumentative approach to distill relevancy, one of my former colleagues (Paul Brown, an entrepreneur & founder, PhD degree) and I share a few things below that we specifically learned from one another (with Steve playing the role of non-entrepreneur, MBA degree). The context is during an enterprise software startup that went from Seed financing to Series A corporate venture capital to Deloitte Rising Star to sale/merger over a period of five or so years.
Some key things Paul got or learned from Steve (my notes taken from discussion and correspondence with Paul):
- Level of professionalism added – Having an MBA-trained person on the team changed professionalism not so much in demeanor but in the total approach to business. The MBA perspectives complemented a very technical, software R&D organization that sold highly technical products.
- Concrete methods and processes added – As opposed to piling receipts in the corner of the room and calling the pile "our accounting books", having an MBA on the team introduced discipline and methods in finance, sales, competitive intelligence & benchmarking, Board meetings, etc.
- Business literacy added - Perhaps an understated item but by adding an MBA competency to the team it helped to make a difference in key company situations as to whether we were taken seriously or not by others (e.g., partners, investors, customers).
Key lessons that Steve learned from Paul:
- Business experimentation is part of the entrepreneurial spirit and approach – Although I may have paid lip service to this in the past, I recalibrated myself away somewhat from business role models where managers are expected to "know the right answer" a priori. When you are paving new ground as in an entrepreneurial venture, there is tremendous value in conducting safe tests (such as floating an idea with another entrepreneur or an industry veteran, presenting a new pricing plan to a niche distributor).
- There is value in tapering the need to make hasty decisions – Something that has always stuck with me for many years was something that I remember reading about the Harvard Business School training method. Students were pressed to make decisions and calls based on information (however limited) in a case study. In reality, this type of mentality is reinforced in many business school and business settings. The mentality is that one will always have incomplete information whether in a managerial, case study, etc. setting, and one needs to make decisions as a manager. Boom, boom, boom, done. Although I have not fully formulated my thoughts in this area, what I believe I learned from Paul was that the entrepreneur may benefit not from procrastination but by delaying critical decisions as long as there is time to either gather additional information, see activities play out, or let management team emotions clear. (I know – my idea is a bit convoluted in its current form, but I am onto something and will revisit).
- If you want to appreciate entrepreneurship truly, you must witness someone with total willpower, drive, and endurance – I don't think I need to say more here, other than Paul has these characteristics.
Paul, thanks for the lessons!
*********************************************************************************************************************
Please enter your email address to subscribe to updates on Steve Shu's blog.
Powered by FeedBlitz
Collecting My Favorite Multimedia Clips and Exhibits For Marketing Course
Starting to collect my favorite videos and photos on my new posterous site (marketing section at http://steveshu.posterous.com/tag/marketing) for teaching business school classes (e.g., marketing, brand management). Folks may find some of the videos and photos entertaining.
I am still trying to find the best way to organize the videos in the context of what part of the marketing or brand management framework is being covered. I may also find a better way to include more detailed marketing notes on each video or photo. In any case, please feel free to send me links of your favorite videos. I may extend the posterous site to include organizational behavior topics, depending on my fall teaching load.
As background, I am using my posterous site as a scratchpad space separate from this blog and Twitter streams.
*********************************************************************************************************************
Please enter your email address to subscribe to updates on Steve Shu's blog.
Powered by FeedBlitz
My Experience With Teaching Ethics Session As Part Of Core Marketing Course
This past week I had a chance to teach an ethics session as part of a larger, core marketing course that I am teaching at Irvine University. I write this post to share my experiences on what worked and what didn't.
Now as context, about four years ago in 2005 I wrote a post on covering ethics as part of business school curricula, and to make a long story short, back then I didn't have a very comfortable opinion on how effective that type of training would be and whether students would want to pay for such training. I have since that timeframe (and based on comments from folks) augmented my opinion a little bit in that while I feel that ethics is something that should not be exclusive to business schools, it is something that leaders need to work with, and as such, is a fundamental topic for business schools to address.
That said, I am not quite comfortable with how I addressed ethics in this past week's session. Setting my effectiveness and student perceptions aside for the moment, here's the basic path that I took:
- Though I'm no business historian, I characterized the history of the revitalization of ethics in the business schools as falling into two mini-eras in recent history– One of these mini-eras started on the order of five to ten years ago and was driven by a lot of the corporate scandals, executive fiascoes (e.g., Enron), and need for better financial reporting (e.g., Sarbanes-Oxley). In this first mini-era, business schools introduced ethics into their curricula with some of them incorporating ethics into leadership courses with others taking ethics and spreading a little bit of those ideas into all courses. Waving my hands a lot, I cited Michael Lewis' piece, "The End" (Of Wall Street), the role of credit default swaps, and failure of ethics (among other things) being at the heart of the cause of the economic downturn. So I concluded that business schools can still do more. Mini-era two is taking place with MBA graduates taking part in the student-led MBA Oath, which has been going viral.
- I indicated that leaders need to be concerned with ethics – basically what I said above in that it is not the sole responsibility of business school students, but that we can further the practice of ethics.
- I promoted two key frameworks for analyzing ethical concerns– Both of these frameworks are from Chapter 4 of the McGraw-Hill Irwin textbook, "Marketing", 9th Edition, by Kerin et. al. One framework was the standard, 2×2 consulting-like matrix that broke ideas into 4 quadrants with (Ethical-Not Ethical on one axis and Legal-Not Legal on the other). We spent time discussing certain scenarios and whether they fell into one quadrant or the other. I argued that the legal axis was, in principle, more straightforward than the ethics axis, where the degree of overlap and misfit between individual, company, general business, and international ethical principles are more fuzzy and can require reconciliation whether by management, ethics officer or other. I cited Transparency International as a data point and source for international practices and norms for ethical conduct. The second ethical framework that we covered conceptually balanced profit maximization and shareholder value against items like environmental, societal, and other factors. Here I feel that the best management practices for balancing things are not so well-developed, but I struggle a bit with how this area should be advanced.
- I talked about ethical codes of conducts (as documents that need to be affirmed by employees in many companies) and associated online training programs – although I did not have example references or documents to point to off-the-cuff.
With respect to the big picture, I was able to cite a number of cases where companies (e.g., Body Shop, POM, BP) have made ethical and social concerns an essential part of their business and/or marketing strategy, but I think my ability to cite, crisp quantitative information could have been better. What are the costs of being ethical? What are the costs of not being ethical? Where does being ethical add to the bottom-line in terms of revenues, sales commissions, shareholder value, reduced churn, etc.? The answers I provided to these questions were either a bit long-winded or not available at the tip of my tongue.
In any case, if folks have thoughts on ethics, teaching ethics, receiving ethics training, etc., please feel free to share your stories. I am interested in what works and doesn't work for folks.
*********************************************************************************************************************
Blog Interview On Consulting For Chicago Booth Corporate Strategy and Management Group
I did a blog interview for the Chicago Booth Corporate Strategy and Management Group (student-run organization for part-time and evening program). The interview (link here) covers areas such as typical week in the life of an independent consultant, common problems currently facing clients, and the most helpful MBA training I received at Chicago.
Aside from the fund raising item I mentioned in the interview section on current client issues, I also shared the following (which characterizes one current client philosophy on approaching prospective consulting projects):
… The other theme I have been seeing more of is in the operational process improvement area. The themes here, however, have not been so much around improving profits as they have been about weathering the economic storm and making improvements that increase either customer satisfaction or quality of services and products. Clients, on the balance, are more conservative right now. Whereas the smart executives and managers may have been going for broke before and taking bigger chances, they now see making continuous improvements as a must-do (not necessarily demonstrating immediate margin or revenue improvement until after the storm lifts). As additional light, some executives are missing their revenue numbers in the current (bad) market climate, but they are making their net profit numbers. These companies are using the stable net profits as their bulletproof vest with their Boards while using consultants in very targeted ways or in controlled “entrepreneurial experiments” to help build for the future.
As an independent consultant, I increasingly need to use my network to read the market (as opposed to having information flow to me from "The Firm". Don't know whether others are seeing similar things or not. Please feel free to share your thoughts.
100 Best Blogs for MBA Students
Kelly points me to a list of blogs for MBAs. There's a mixture of new ones and older ones in the list (looks like this blog just made it on the page at #100). I'll have to check out the list (and add a few to my newsreader) as my involvement with various business school communities has been increasing as of late.
The Kellogg Post MBA Program
I just ran across Kellogg’s Post MBA Program, which is targeted at people that have MBAs that have aged more than ten years. This is an interesting market to target, and not one that I’ve seen before.
A more detailed curricula is outlined in their brochure, which is prefaced by text including the following:
The curriculum for the Kellogg Post-MBA Program has been created for executives who already have earned an MBA degree and want to gain a fresh perspective on leadership. The first two weeks of the program address a broad range of recent management developments such as globalization, hyper-competition, outsourcing, the shift to a knowledge-based economy, the growth of innovative financial instruments, the appearance of truly global capital markets, distributed information processing capabilities, and new communications technologies. Five months later, participants return for a leadership week that focuses on developing one’s own personal leadership capacity while also equipping people to lead change in today’s complex environment.
What is interesting to me is the characterization of recent developments. As time passes and if people don’t adapt, it can be easy for workers to get stuck in old ways, whether that be having historical prejudices, using traditional management styles, or carrying about old conceptual models on how things work.
The spirit of the Kellogg program seems good. It is great to reflect on how things have changed over the years and how one needs to adapt continuously.
Of course seeing the first curriculum item of "The Sarbanes-Oxley Act" nearly made me pass out …
University of Chicago MBA Applicants Must Submit Powerpoint Charts
From an article at OrlandoSentinel.com:
At business meetings the world over, PowerPoint-style presentations are often met with yawns and glazed eyes.
At one of the world’s top business schools, though, such slide shows are an entrance requirement. In a first, the University of Chicago will begin requiring prospective students to submit four pages of PowerPoint-like slides with their applications this fall.