The MTP Business Learning Blog

This blog is produced by MTP for senior professionals highlighting relevant and interesting books and articles on business, finance and strategy, and the opportunity to comment on them. It also contains news of MTP and its clients and, from time to time, extracts from MTP publications.

Wednesday 10 April 2013

‘Flying the Flag’ by Virginia Matthews, Director Magazine, March 2013

Like many in Director Magazine, this article promises more than it delivers and ultimately fails to justify the headline of the section in which it is placed - ‘The Expert – information you need from the people you know’.  The topic is the business position and strategies of the major UK business schools but the author fails to convince that there is expert knowledge available.  As is typical of too many Director articles, there are selective and self-serving quotes from those representing vested interests.

The first quote is from the Head of the Masters Programme at Cass (City University) Business School which has launched a joint programme in ‘quantitative finance’ with Singapore Management University.  The rather questionable claim is that ‘the pre-eminence of British Education is here to stay’, a claim that those at Harvard, INSEAD and IMD might want to question!  They might also roll their eyes at the further reference to the ‘UK’s great research and teaching standards’ and ‘extraordinary achievements’.  I believe that some of our business schools are pretty good but this is way over the top. 

Despite this questionable start, the article still provides some interesting information and insights into trends in management education.  It follows the quote from Cass by admitting that, though some UK institutions may be extending their influence abroad, the number of international students coming to UK business schools is in consistent decline.  Overall enrolment is at an eight year low and is 21% down on the numbers only three years ago. 

Just when it is in danger of becoming interesting, the article strays from its main theme when it tries to make references to the implications for SMEs - Small and Medium Enterprises - but the links are tenuous to say the least.  The Head of Henley’s Executive Education claims that the expansion of business education into Asia somehow opens opportunities for SMEs, with business schools offering inside knowledge and even arranging meetings for SME managers.

Apparently Henley is expanding physically into Asia with a wholly owned campus in Saudi Arabia and a planned launch into Malaysia.  Strathclyde Business School has chosen to make similar moves into Africa.  This strategic response to declining numbers at home is seen as the best way to counter increasing competition from the major consulting firms and specialist training organisations.  Despite the increase of on-line learning, Mike Brooks of Henley believes that ‘getting on a plane to deliver learning remains the best option for delivery to students’.

This is still in line with the views of many buyers in top international companies - though increasing numbers are changing their mind as virtual classroom technology and expertise develops - but it does beg the question of why you therefore need a campus in Saudi Arabia as a base for those who are to catch the planes.  MTP’s experience is that the physical location of those who deliver business training is becoming less and less important, it is the ability to be flexible and to tailor material to each company and culture that matters.  And those who try to compensate for falling numbers in the UK by establishing expensive overheads abroad are exposing themselves to much higher risk.

There is however no doubt that the route of collaboration with institutions in other countries can pay off and the IOD finds room in the article to describe its own educational activities in a wide range of countries.  The author quite reasonably asks the IOD’s Director of Learning & Development, Ryan Ahearn, why countries that are wanting to develop their own skills should look to the UK and the answer is that ‘the UK’s professional qualifications are well respected overseas’.   Ahearn suggests that partnership with local institutions is the way forward, helping such organisations to develop their own resources.

Susan Roth of Cass Business School continues the self-serving tendency by claiming that ‘British Executive Education is embedding ethical behaviour in the mindset of a new generation of business leaders’.  I am quite prepared to believe that our ethics are more acceptable than most countries but the activities of our banks in recent years might cause sceptical students to doubt our pre-eminence in this area.

However, in the battle for the gold medal in self-serving and patronising comment, Mike Brooks of Henley surpasses even Cass and the IOD.  He makes the questionable claim that ‘Western Business Schools, as opposed to home grown ones, have a clear edge in thought and understanding’.  Even more outrageous is his view about business training in China that ‘where bald research and data’ as apparently delivered by consultancies is no substitute for the ‘in-depth understanding and translation’ which Henley can provide.  I wonder how the Chinese feel about that.

This is followed by a more balanced comment from Susan Hart of Strathclyde who stresses that collaboration must be two-way and that we must forget any ideas of imposing our western views offshore; instead we should be learning from those in other parts of the world.  Maybe she needs to visit Henley!  Bill Shedden of Cranfield also adopts a more balanced approach by emphasising the importance of customising content and the benefits of delivering webinars on-line.

Each of the contributors are encouraged to make comments about the issues for SMEs but these are contrived and few coherent points are made.  No-one seems to accept the key problem for SMEs - that they are too small to develop their own tailored training activity.  Their managers are therefore limited to generic, publicly available business courses that mainly contain content that is more suitable for larger businesses.  How many Harvard or LBS case studies feature SME issues?

The article would have been more convincing if it had explored this issue in more depth rather than allowing business school representatives to make questionable claims and contrived links to SMEs.  My main conclusion from the article is that I would have great concerns about the future of those business schools who think that the UK is so pre-eminent and that physical expansion into developing countries is the right strategy.  But as Business Schools are among MTP’s key competitors, I guess I should be grateful. 

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