Executive MBA 2015 by Education Post

Executive MBA

2015

January

- Business schools stay a step ahead with realistic and constructive courses - Four simple steps to breed a corporate culture of innovation - â&#x20AC;&#x2DC;Group faultlinesâ&#x20AC;&#x2122; can be a dividing boost to family businesses www.educationpost.com.hk/emba-2015jan

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CONTENTS Cover story

Business schools keep finger on the pulse with new keystone initiatives JOHN CREMER

Research

Four ways companies can encourage innovation CAPITAL IDEAS

Inside the course

LBS EMBA hones entrepreneurship through summer school JOHN CREMER

Talking to the top

CEIBS develops mainland executives into global leaders ANDREA ZAVADSZKY

Tips

30 32

How to get your employer to pay for your EMBA MELISSA LANGLEY

Division in top management team: Bane or boon? FANG YING

Cover story

Business schools keep finger on the pulse with new keystone initiatives JOHN CREMER

usiness schools offering EMBA programmes

blocks or joint projects. It goes far beyond that. In

in Hong Kong are at the sharp end of execu-

short, faculty and administrators must be able to see

tive education. But that means they also face

the future. They have to recognise and anticipate

a considerable â&#x20AC;&#x201C; and unrelenting â&#x20AC;&#x201C; challenge to en-

changes in everything from the global economy

sure their core courses and electives are updated or

and financial markets to corporate practice and the

adapted fast enough to meet the demands of stu-

workplace environment.

dents whose rank and experience already put them among a clear business elite.

Such insights require an understanding of new business models, shifts in international trade, and inven-

Staying ahead, of course, is not just a question of

tive applications for the latest technology. They can

replacing case studies, bringing in new guest lec-

be drawn from research papers, consultancy work

turers, or providing extra options for overseas study

for leading companies, or simple observation of dis-

Photo: iStockphoto

“

This year, for the first time, we are offering a new capstone course on integrated strategic management

“

Richard Johnson, Chicago Booth

cernible trends in areas like online retail and fund-

“This year, for the first time, we are offering a new

ing start-ups.

capstone course on integrated strategic management,” says Richard Johnson, Asia managing di-

But the essential thing, in terms of teaching an

rector for the University Of Chicago Booth School

EMBA, is to make sure these elements – and the

Of Business. “The primary component is a cus-

rest – quickly become part of an ever evolving cur-

tom-designed online simulation and the purpose is

riculum, which will give individuals the skills and

to apply knowledge learned throughout the entire

know-how to lead forward-looking organisations in

programme by running a simulated company and

an always shifting competitive landscape.

competing with other study groups.”

Given this, it is not surprising that the top schools

This exercise lasts for several days and entails all

already have plans in place for a range of changes.

the key aspects of strategy, uncertain market conExecutive MBA 2015

Cover story

At one level, the teaching deals with the fundamental disciplines which underpin how organisations function, how markets work, and how people make decisions. This enables students to evaluate problems and assess business opportunities by providing various frameworks which make it easier to compare and contrast. As a result, they should be able to make better decisions in their professional lives. At another level, the aim is to generate, refine and apply ideas in order to move beyond conventional thinking and accepted wisdom. “Overall, the ‘Chicago approach’ is characterised Richard Johnson

by a unique educational philosophy that creates a transformational experience,” Johnson says. “In addition, new and improving technologies continue to change the way we do business and provide support

ditions and competitive pressures. Of necessity, it

for students.”

involves a complex series of interactions, requiring each group to rely on book learning or past prece-

For instance, courses on data-driven marketing and

dent and experience, but also to react, adjust and

technology strategy show how to sift and leverage

innovate accordingly.

the mass of information to best effect. And the collaboration tools used for group study, along with on-

“We also have a newly developed course focusing

line review sessions between class weeks, point the

on leadership capital,” Johnson says. “Any person’s

way to foreseeable changes in the workplace too.

ability to lead depends on their skills and capacity, as well as the extent to which they have credibility

CUHK develops relatable local case studies

and trust among those they wish to influence. This is a form of human capital, and the course explores

As director of the executive MBA programme at the

these important ideas by combining academic in-

Chinese University of Hong Kong (CUHK) Business

sights and practical case-based role-playing scenarios.”

School, Professor Andrew Chan regards one new development for 2015 as a significant step forward.

The course was specially created for the EMBA pro-

It is the deliberate move to write up and include

gramme and will be taught by a long-time profes-

more local and Asia-based case studies in the pro-

sor who is an expert in leadership, negotiations and

gramme, starting with one on Hong Kong jewellery

managerial psychology. It is seen as the latest exam-

firm TSL.

ple of how the school uses a diverse array of analytical and behavioural tools to help students learn to

In particular, this company presents the chance to

see things in new ways.

look at a successful family-run business and bring in

aspects like market expansion, mainland ambitions, crisis management and succession planning. “There are plenty of good case studies from abroad, but we want more which are rigorously prepared and reflect local relevance and context,” Chan says. “For this one, interviews were conducted over a sixto nine-month period to understand different decisions and scenarios, and this information was then narrowed down and refined for the write-up.” The findings are now being sent to international “case houses” for publication and use, not just at CUHK but, potentially, at business schools around

Photo: iStockphoto

the world.

Constructive EMBA courses keeps students focused Executive MBA 2015

Cover story

In the course he teaches on marketing, Chan ensures immediacy by including examples and de-

The way forward

bating points from the day’s headlines. Therefore, a class discussion might revolve around the impact of the Occupy Central movement on local retail businesses or the pros and cons of the declining price of oil. At present, CUHK is also working with the Hong Kong Design Centre to put together a course on design and innovation, which will also touch on areas of management and strategy. The intention is to ask a top-notch designer to take part in the classes, so that EMBA students see different perspectives to business and are not simply playing roles or taking their standard approach.

Diana David

Commenting more generally, Diana David, “This year, we are including an elective on leader-

programme director for the FT Non-Execu-

ship taught by a top leader in the region and, sep-

tive Directors Club, is not surprised by the

arately, will be inviting important names from the

steadily growing demand for EMBAs or by

local business community to serve as adjunct pro-

the effort business schools put into updating

fessors and highlight what happens in a real world

their courses.

setting,” Chan says. “And a new elective on entrepreneurship will talk about the various dimensions

“Perpetual education is the new norm,” she

of starting your own business, from planning and

says. “As competition increases, people of

finance to angel investors, venture capital and pos-

all ages are ‘going back to school’ to keep

sible IPOs.”

up with new technologies or business models, learn new skills, or simply keep alive the joy of learning. While it is widely accepted that globalisation and tech are driving executive education, underlying themes such as China’s outbound mergers and acquisitions activity plays an increasing part in executives’ requirements.” Andrew Chan

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Oxford EMBA offers wealth of global opportunities HONG Kong and mainland students opting for an Executive MBA at Saïd Business School, University of Oxford can join a unique global community of leaders ambitious to achieve great things. With more than 30 nationalities in each class representing every sector of the global economy the EMBA offers a chance to forge connections lasting a lifetime. As part of one of the world’s greatest universities, the Oxford EMBA has crucial advantages over rival programmes. Tutors work with colleagues across other disciplines to bring Oxford’s research into the business school environment. One recent initiative, Global Opportunities and Threats Oxford (GOTO), enables them to combine their expertise with that of colleagues in the university to study multi-disciplinary issues such as demography, Big Data and the effect of water scarcity on business.

“This gives students the opportunity to tackle issues which affect organisations around the world, and makes them part of the board-level conversations many of their CEOs are already having,” says Kathy Harvey, Director of Executive Degree Programmes and Executive EMBA Director. The School also invites business leaders from various organisations as guest speakers and, in some electives, offers them opportunities to co-teach with faculty to offer students access to contacts and insights which will help them in their career transitions. One example is the module on entrepreneurial finance, which is co-taught in California with an angel investor from Silicon Valley. The School also offers all EMBA students executive coaching, with one session dedicated to understanding individual leadership styles, and five one-to-one sessions with a business coach to

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help participants focus on their professional goals alongside their academic studies. “Our coaches work with our careers talent development team, which offers a series of workshops ranging from résumé-writing skills to salary negotiation,” says Harvey. The course includes a module focusing on strategic leadership, and from 2015 the School will also include sessions focusing on navigating an ever more complex global environment, including managing relationships with governments as well as business. The course will also include sessions on governance and ethics and a compulsory module on strategic leadership. “Punting on the river, watching Shakespeare in an Oxford college garden or taking part in a debate at the Oxford Union is all part and parcel of Executive MBA life at Oxford,” Harvey says. “However, a lot of the creativity also happens as part of the learning. Crisis management simulations, creativity exercises and trading simulations are incorporated into the lectures to make learning interactive.” Harvey stresses that an Executive MBA should be a transformative experience. “The Oxford programme is designed to change the way individuals think about themselves as leaders, and about how they can make a difference to the future of their firm and its place in an increasingly complex global environment,” she says. Participants are challenged to think differently about issues facing their organisations, question decisions they make as senior managers, and consider new ways of making an impact. The programme’s range of nationalities makes it one of the world’s most globally diverse Executive MBAs. Harvey explains that Oxford’s tradition of

debate and discussion means participants have unrivalled opportunities to understand the challenges of globalisation and the requirements for operating successfully across cultures. “No one leaves the programme unchanged, and the power of their EMBA network is something they frequently refer to as alumni,” she says. However, Harvey also advises would-be participants to be prepared to face stiff obstacles. “The challenge is different for everyone,” she says. “If you have a liberal arts background you may find you have to work hardest during the quantitative modules such as Firms and Markets or Business Finance, but for other participants the real challenge comes when they have to negotiate the complexities of working with their MBA syndicate groups, learning how to motivate fellow classmates from different disciplines, business functions and cultures. “It’s important for every student to understand their own leadership style, their strengths and their weaknesses, and this self-knowledge is something you definitely learn throughout the programme,” Harvey adds. “If you apply for an academically rigorous degree such as the Oxford Executive MBA you will be expected to prepare thoroughly for every class so that you can offer your views and contribute to the discussions in each subject.” “Tackling the reading list before you arrive is vital, and brushing up on your maths skills is also important, but more than anything you need to be a ruthless time manager and come prepared to concentrate fully on your studies at Oxford. We look for candidates who are intellectually curious, willing to question the status quo and eager to grasp opportunities,” Harvey adds.

Kathy Harvey, Director of Executive Degree Programmes and Executive MBA Director Kathy Harvey is Director of the Oxford Executive MBA at the Saïd Business School. She also oversees the portfolio of executive qualifications at the School, including four masters-level postgraduate diplomas and a specialist MSc in Major Programme Management. Previously Kathy was Director of Open Enrolment Programmes at Saïd Business School, where she designed the School’s postgraduate diplomas, developed a number of short finance programmes and launched an innovative, modular, Oxford Transition to Leadership Programme. She has also played a key role in developing relationships with the Guanghua School of Management, Peking University, and is part of the teaching team for the Oxford-Guanghua-Wharton Programme for Global Entrepreneurs. She leads the Entrepreneurship Project for the Executive MBA and teaches crisis and stakeholder management on programmes within the Executive Education portfolio. She is also a member of the Oxford Coaching Community, working with senior executives to achieve their professional goals.

Research

Four ways companies can encourage innovation

Five years ago, an Executive MBA

alumnus who had taken a course with Michael

Gibbs, clinical

professor of economics and faculty director of the Executive MBA Programme at Chicago Booth,

stopped by to visit – and men-

tioned in passing that the firm where he worked had been tracking

ompanies usually loathe revealing what makes them successful, lest competitors profit from the information. But what the

alumnus described struck Gibbs as an unusually good store of data he could use to analyse creativity in the workplace. Academics interested in the subject rarely get an opportunity to measure what works, or doesn’t, outside of a laboratory or controlled situation. Furthermore, he soon learned that

the progression of thousands of

the company had even more data: it had recently

of new ideas and what happened

age more and better ideas.

new ideas. “You have a database to them? Can I get access for

research?” Gibbs recalls asking.

run an experiment to see if incentives could encour-

The firm agreed to share its data, on the condition that the company’s name and other identifying details be kept secret. (Gibbs and his co-researchers – Susanne Neckermann of Erasmus University Rot-

portal,” an intranet-based tool that helps track ideas from seed to implementation. As a portal is usually accessible to most employees, it makes ideas and their origins transparent. At the company, employees formed small groups to come up with and submit new product ideas as Photo: AFP

well as practical operational suggestions ranging from how to better communicate with client teams to how to make work patterns more efficient within

terdam in the Netherlands and Christoph Siemroth

specific departments.

of the University of Mannheim in Germany – can only say that it’s a publicly-traded IT-services firm

“Many companies struggle to generate an overall

that employs more than 70,000 people and does

culture of innovation. They have an R&D group and

business-process outsourcing.)

hope that this will lead to new products,” Gibbs says. But an idea portal can encourage all employ-

And after analysing the progression of 5,000 ideas,

ees to share new ideas, he says, and showing those

the researchers identified a few operational deci-

ideas to other employees can stimulate thinking,

sions that collectively paid off more than tenfold.

help create friendly competition, and encourage

Their findings, especially when coupled with those

better ideas.

of their colleagues in academia and industry, contain four straightforward approaches companies can

Larger companies can have a particularly hard time

use to spur innovation.

inspiring employees to generate and pitch new ideas. Positions may be narrowly defined, job descrip-

1. Use an idea portal

tions may not formally include “developing new ideas,” and employees may not want the hassle of

The IT firm Gibbs studied had in place an “idea

doing extra work. Executive MBA 2015

Research

But many employees “have useful knowledge about

ing partner at Innosight, an innovation consulting

customers, and may have ideas about ways to im-

firm, and the Singapore-based author of The First

prove processes, customer service, or product de-

Mile: A Launch Manual for Getting Great Ideas into

sign,” the researchers write. Those employees need

the Market.

a chance to see their ideas put into practice. “The way to be smart about these crowdsourcing In the past few years, several companies have imple-

efforts is to constrain the quest, so that employees

mented programmes to prevent potentially valuable

and customers are trying to solve a very specific

ideas from getting lost. Consulting giant Accenture,

problem,” says Anthony.

headquartered in Dublin, launched an idea-proposal competition for staff, with cash rewards. At Mum-

Gibbs agrees that a firm-wide innovation system can

bai-based Tata Consultancy Services, employees use

require some guidance from executives. Companies

IdeaMax, billed as a social innovation platform, to

“need to train employees in idea-creation methods,

encourage ideas from its consultants. Chemical gi-

and encourage them to focus on areas where they

ant BASF’s “We Create Chemistry Portal” allows em-

are most likely to make useful suggestions,” he says.

ployees and clients to share ideas. Other companies

In the IT firm he studied, employees were encour-

have experimented with innovation consultancies

aged to develop ideas related to their roles.

by crowdsourcing new ideas. 2. Reward good ideas To get the most from portals, one innovation expert suggests narrowing the scope of submittable ideas.

Many business schools and leadership programmes

For example, companies including Citibank and

teach executives to believe that creativity is a per-

Coca-Cola are guiding employees to come up with

sonality trait that can’t be swayed by old-fashioned

answers for specific areas of the company where

rewards. According to this mindset, incentives could

ideas are most crucial, says Scott Anthony, manag-

actually undermine employee creativity.

Photo: AFP

Gibbs disagrees, saying that creativity is similar skills. “While most psychologists and sociologists would argue that innovative behaviour tends to be different, and creativity tends to be undermined by rewards, we found it was just the opposite,” he says. The firm he studied had run a well-developed, yearlong experiment to test whether incentives could spur innovation. It had offered incentives to 5,400 employees, and when the company or one of its clients implemented an idea that had been developed through the idea portal, management awarded praise and points to the responsible employees. The points could be traded for prizes such as smartphones and gift certificates. Meanwhile, the company had also created a control group of 6,000 employees operating without incentives. And this allowed the researchers to see that rewards had a clear impact: workers across all departments responded to the company-organised experiment, and they generated better ideas as the

“

[Companies] need to train employees in idea-creation methods, and encourage them to focus on areas where they are most likely to make useful suggestions

“

to behaviours such as leadership or management

Michael Gibbs, Chicago Booth

rewards increased. The rewards, the researchers found, inspired more lower-level employees to use the portal. And they increased the quality of ideas. “Our findings suggest a trade-off between quality and quantity in idea-creation,” the researchers write. This is important, Gibbs stresses, as rewards can motivate employees to focus on quality, generating fewer but better ideas. Even after the experiment ended, employees who had received awards kept contributing good ideas. Gibbs speculates that generating good ideas became habit, or a part of the corporate culture. When Gibbs, Neckermann, and Siemroth calculated the return on investment for the experiment, they found that rewarding the best ideas cost the company $14,250 over the year. Meanwhile, it stands to earn an estimated $1.4 million–$8.3 million in Executive MBA 2015

Research Photo: AFP

The use of technology helps spur innovation in education

annual net profits, on average, as the company be-

That said, the data reinforced the value of experi-

lieves a few of the ideas have potential to generate

ence. The researchers used the data to identify the

huge returns. One in particular could improve reve-

employees who were more likely to submit better

nue by an estimated $22 million per year.

ideas, and analysed how that likelihood related to tenure, age, salary, and position.

The researchers also tested the claim that rewards

displace intrinsic motivation, comparing what

Employees who had been with the company the

happened when they offered rewards to previous-

longest submitted the best ideas. Younger employ-

ly-identified “creative” employees to what hap-

ees presented slightly more ideas, but those tended

pened when they offered them to other employees.

to be of lower quality.

The rewards, they found, did not reduce innovation among the employees who had previously suggest-

When it came to the most viable ideas, tenure – not

ed quality ideas.

age – mattered most. Some people may find doing the same work on a day-to-day basis boring, but it

Despite the clear impact of incentives, Gibbs ad-

also gives them a deeper understanding of the cli-

vises that companies exercise caution when doling

ent’s goals, products, and methods. “Innovation

out rewards. “If you set these [incentives] up in the

arises in part from experience in the same company

wrong way, employees will do the wrong thing,”

with the same clients,” Gibbs says.

says Gibbs. Rank also matters: more senior, higher-paid employ3. Court long-time employees

ees submitted ideas of slightly better quality than workers paid less.

The IT firm’s idea portal attracted a range of workers,

including young and inexperienced employees low

4. Embrace analytics

in the company hierarchy. Gibbs says that’s a good development, as newer workers can have perspec-

It takes a long-term commitment to build a suc-

tives and ideas that could otherwise be overlooked.

cessful idea pipeline. To make the time and effort

worthwhile, companies need to show employees

er aspects of business, he says, it’s nice to see com-

that each idea has the potential to improve the com-

panies start to use analytics to also help manage

pany, says Gibbs.

and motivate employees more effectively. In this example, the idea portal allowed the IT firm to track,

For large companies such as Toyota, based in Japan’s

quantify, and analyse employee innovation.

Aichi Prefecture and with more than 330,000 employees worldwide, simply acknowledging and sort-

Data and analytics also makes it possible for com-

ing ideas is a huge endeavour, says John R. Birge,

panies to test and refine policies before implement-

Jerry W. and Carol Lee Levin professor of operations

ing them company-wide, just as the IT-services

management at Chicago Booth, who consults for

company did. Based on the researchers’ findings,

the automotive industry and has studied Toyota. Big

the IT firm is now implementing a permanent re-

companies “have to show that they are taking every

ward structure. It offers cash payouts that are auto-

suggestion seriously, because that’s how they en-

matically added to an employee’s pay check for all

courage people to keep making those suggestions,”

implemented ideas. “All companies say they want

says Birge.

to reward innovation, but [they] really need to do it,” Gibbs says.

It’s also crucial to “define a ready path to execution” for employees, says Innosight’s Anthony. Most em-

Work cited

ployees will only continue sharing ideas if they see

Michael Gibbs, Susanne Neckermann, and Chris-

their top suggestions seriously considered. If com-

toph Siemroth, “A Field Experiment in Motivating

panies don’t have the resources to act on at least

Employee Ideas,” Initiative on Global Markets work-

some of the proposed innovations, the idea pipe-

ing paper, May 2014.

lines can dry up. Copyright, republished from Capital Ideas, the onGibbs recommends using data and analytics, and

line business journal of the University of Chicago

thinking like a personnel economist. As companies

Booth School of Business.

have been using big data and analytics in many othExecutive MBA 2015

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Inside the course

LBS EMBA hones entrepreneurship through summer school JOHN CREMER

he success of any EMBA programme depends to a large extent on the ability to anticipate and adapt. It is not enough to give senior

executives a standard curriculum and case studies illustrating the highlights and pitfalls of business life when what they are looking for is something extra â&#x20AC;&#x201C; specifically, new insights, ideas and experiences, which will pave the way to faster promotion or alternative career options. For that reason, programme providers see the im-

Photo: Felix Wong

“

Many more students now want to be entrepreneurs and take courses which show them how

“

Silvia McCallister-Castillo, LBS

portance of frequent course reviews and, in particu-

neur mentors to offer advice on starting your own

lar, an ever expanding range of electives to reflect

business and expanding your network.”

evolving trends in the corporate world and cater to changing interests and individual objectives.

Crucially, the advice and support does not stop there. LBS also has an “incubator” programme

“For example, many more students now want to be

which gives students access to facilities and fac-

entrepreneurs and take courses which show them

ulty even after they graduate. This means budding

how,” says Silvia McCallister-Castillo, director for

entrepreneurs can continue to build up domain

the EMBA-Global and Sloan programmes at London

knowledge with the help and guidance of experts

Business School (LBS). “Therefore, we introduced

who have “been there”. As a result, they can plan

electives geared to this and have a pool of entrepre-

for, and circumvent, potential hazards, thereby minExecutive MBA 2015

Inside the course

imising the need to learn from mistakes or through

launch pad for their own business. Along the way

basic trial and error.

they are shown that a good idea counts for little without a solid business plan and that accepting

Entrepreneurship summer school

investment or entering into a partnership has longterm legal implications.

LBS has started a summer school for entrepreneurs as an extended elective. It effectively serves as a “boot

At the end of the summer school, students are given

camp” for students who, as a prerequisite for accept-

a chance to pitch their project to a panel of private

ance, must have a viable idea they hope to get off

equity investors actively looking for opportunities,

the ground. They are then taught about everything

and may also be matched up with suitable mentors.

from finding potential partners and investors to putting together a sales and marketing budget, pitching

LBS has even established its own private equity fund

ideas, making cold calls, and understanding how

to provide capital for early-stage companies which

the whole venture capital and private equity eco-

pass the usual level of scrutiny.

system works. Such initiatives have already helped one EMBA stuThe process involves discussion and analysis by the

dent start a retail bank, and a competition has been

group of each person’s basic

set up to reward and draw attention to the best com-

proposal which, ideal-

panies launched by alumni.

ly, should identify a gap in a specific

“With steps like these, we have shown that you can

market and clearly

teach entrepreneurship,” says McCallister-Castillo.

outline a way to

“We have had students making use of technology

fill it.

to set up enterprises offering remote health care and low-cost remittance services, as well as more tra-

As things unfold,

ditional businesses like hotels and restaurants. For

each participant is

this, you need the basics of business strategy and

expected to hit

thought leadership, but also a focus on actual chal-

certain

mile-

lenges any entrepreneur will face.”

stones and use the course not

The aim now is to keep expanding the network of

simply as an

mentors and advisers in order to support an ever

academic

wider range of possible start-up ideas and give more

exercise,

EMBA graduates the confidence to strike out on

but as a

their own in various parts of the world.

“I am always surprised how generous our alumni

The next phase, though, includes the launch of a

are with their time and we will be able to involve

master’s in management dual degree in collabora-

more faculty members from our partner schools,”

tion with Fudan University, which is seen as a “natu-

McCallister-Castillo says.

ral fit”. It entails one year at LBS taking the standard management subjects and then a year in Shanghai

Partnering with Fudan University

with a curriculum designed to give a perspective on how both Chinese and western companies are now

In other respects, LBS is working on a multi-pronged

operating in Asia.

approach to expand its footprint in China. This reflects the ever increasing demand for places from

“We will ask students to set up their own visits, so

mainland-based applicants and, of course, the need

they can learn how to cold call a company,” Mc-

for students elsewhere to understand the shifts and

Callister-Castillo says. “For groups of regulators or

drivers in a fast-changing global economy.

directors of other Chinese business schools, we design customised programmes which LBS faculty like to

Already, EMBA students can take on international

teach because they can learn so much in return.”

assignments in Shanghai and Beijing, focusing on areas like macro-economics and regulation. And there are regular study trips to Hong Kong and the mainland linked to other programmes.

Photo: Reuters Executive MBA 2015

(Advertorial)

Triple power boost for global EMBA John Cremer

When the EMBA-Global Asia programme took flight in 2009, it made immediate sense for ambitious executives looking for the insights, perspectives and networks to achieve success anywhere in the world. The concept was to combine the strengths of three leading institutions – the University of Hong Kong Business School, London Business School (LBS) and New York’s Columbia Business School – based in the three key centres of international finance. And demand for places in the next intake of 35 to 45 students set to start in May this year shows that a programme specifically designed for high-calibre individuals aiming to reach the top in their chosen fields is indeed delivering as advertised. “The faculty in each school have in-depth subject knowledge and expertise in their region of the world,” says Hong Kong-based Dave Evers, director of admissions and business development for the EMBA-Global Asia. “That gives students access to thought leaders in global business and an opportunity to debate theory, compare practices, learn about different economic conditions and, where appropriate, challenge convention.” The programme format includes core courses taught in intensive four- or five-day blocks during the first three terms. Most take place in Hong Kong, but there are also two class weeks in London, two in New York, and one in Shanghai. Faculty members travel as necessary to where the class is in residence, and all teaching is in English. Core modules deal with everything from corporate finance and decision models to financial accounting, executive leadership and the global economic environment. Also covered are topics like capital markets, organisational change, managerial negotiations, marketing strategy and operations. Students are then required to complete eight electives in terms four and five chosen from the full spectrum of courses taught at the three partner schools. The electives offer a chance to explore a specialist area in greater depth or to range into less familiar territory. The options showcase the latest thinking and research, tackling anything from behavioural economics or customer-centric innovation to global entrepreneurship, personal leadership or venture capital and private equity. The range of electives and locations allows students to customise this part of the programme to match individual interests and needs. Either solo or in a team of up to four, they can also opt to work with a faculty member on an independent project which focuses on consulting work, business planning or research. Such projects should involve analysis and propose solutions for complex business problems using skills and methods learned earlier in the programme. One choice, however, must be an international seminar or assignment, and recent faculty-led trips have included visits to South Africa, India, Brazil, Germany and Russia. Along the way, there are chances to meet senior industry leaders, work within organisations, collaborate with executives on other EMBA courses at LBS or Columbia, and link up with alumni in various parts of the world. “All that helps to differentiate us from other programmes,” Evers says. “We also get expert speakers working in these three financial capitals to come in and talk to the class. And in this day and age, when opportunities in business often depend on having good contacts, graduates become members of the alumni network of all three schools. Throughout, we facilitate that interaction and the diversity of the class also promotes the exchange of ideas and better understanding of other cultures.” Anyone interested in applying is first advised to attend one of the regular information sessions to see if the programme will really suit them and vice-versa. Before committing, it also pays to tap current and former students for their advice and opinions and, if possible, to sit in on an actual class or two. To be accepted, candidates must have the support of their present employer in order to get time away from the office. In some cases, organisations also provide financial sponsorship, though a general trend shows more students preferring to pay their own way and, thus, being free to move jobs or change career direction as and when they choose. It often happens, though, that once they are on the programme, employers see reason to offer new responsibilities and more stretch assignments, which works to the advantage of both sides. In any case, all three schools provide comprehensive career advice and support including one-on-one coaching, skills workshops and professional development courses. The aim is to help active job seekers, as well as students keen to make an extra impact in their current role. “We believe that EMBA-Global Asia students gain distinct and immediate career advantages,” Evers says. “Whether you want to assume greater responsibility, make a transition within your current organisation, redefine your career or launch an entrepreneurial venture, it gives the requisite knowledge and delivers benefits from day one.”

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Talking to the top

Photo: Reuters

CEIBS develops mainland executives into global leaders ANDREA ZAVADSZKY

ince it first threw its doors open in 1978, Chi-

ment practices and carefully took notes,” says

na has seen a growth unparalled in economic

Arthur Yeung, Philips chair professor of human

history. For more than 30 years, the country

resource management at CEIBS. “Lately they chal-

achieved an annual average GDP growth of 10 per

lenge [the theories] and wonder if they are workable

cent, first becoming the world’s number one manu-

in China, which is at a different stage of economic

facturing base and preferred destination for foreign

development, with a different political culture and a

investment, then itself becoming an investor across

planned economy.”

the globe. Today, mainland firms are encouraged to venture In line with this rapid development, the country’s

abroad and leverage their resources by investing

human resources needs and education require-

outside of the country, creating the need for yet an-

ments were changing fast. The first task was simply

other type of business leader – one with knowledge

to catch up with the number of university gradu-

of the global economic system.

ates needed and develop a knowledgeable business leadership base and mid-level managers to support them.

“China has two M’s: money – low cost capital and low cost loan; and market opportunities – although

The China Europe International Business School

not top tier, but rather in the middle to low end of

(CEIBS), which this year is celebrating its 20th year

the market. Firms are encouraged to go outside to

in China, has been closely following the changes in

leverage their resources. The talent they need is very

students’ needs.

different, the game is very different,” Yeung says.

“For years, students listened to western manage-

Business leaders need to become global leaders,

sensitive to cultural differences, understand brand-

you reach director level when you are in your 40s,

ing, intellectual property, observation of contracts,

in China you expect to be a director within five to

and generally aware of global management practic-

seven years.”

es, and MBA students want to see more case studies of companies successfully investing overseas.

Thirdly, you play big, Yeung continues. “Once you multiply, the scale is huge, you play a big game.

Human resource management practices are also

In China maybe only two to three per cent [of the

slowly changing. Due to tremendous demand for

people] are wealthy, but if you reach them, that’s a

mid-level employees, companies didn’t train their

lot of people.”

own people, instead they used to poach them offering 30 to 50 per cent higher salaries. It became an

While the CEIBS EMBA is popular with 1,000 stu-

unsustainable vicious circle. These days, large com-

dents joining at every intake, chief executives prefer

panies with good employer branding, such as TCL

to learn in a different way. The Organizational Capa-

Communication, Tencent or Huawei, are building

bility Learning Association (OCLA) set up by Yeung

their own academies.

serves the needs of chief executives from more than 100 Chinese firms offering peer coaching, overseas

“If they come for higher salary, they will also leave

company visits, benchmarking visits within China,

for higher salary,” says Yeung. “You have to build

and their own annual conference.

your own pipeline, even if one out of every three will make it. About 60 to 70 per cent of talent needs to come from within.” Joining the Global MBA class which is run in English, students learn about the major differences between doing business in China and abroad.

Arthur Yeung

The first major point to understand is that China is very diverse. Due to the huge size of the country, the business environment is fragmented and disparate. In different parts of China, the approach to business is very different, including laws and regulations, such as tax and labour laws. Consumer behaviour is distinct, for example foreign brands are hot in Shanghai but local brands are preferred in Shandong. Secondly, the name of the game is speed, according to Yeung. “In Europe people think a growth rate of five to 10 per cent [for a business] is very good; in China it is 50 to 100 per cent per annum. In the US Executive MBA 2015

Tips

How to get your employer to pay for your EMBA

MELISSA LANGLEY

ne benefit of pursuing an EMBA is that

issue for employers to consider is retention. The cost

while you are achieving academic goals,

of the programme could be upwards of $90,000

you can maintain your full time job in the

USD and without proof of employee loyalty, com-

corporate world. While only attending class every

panies will not feel comfortable investing aca-

other Friday or Saturday, you can significantly en-

demically. One way to demonstrate willingness to

hance your career. However, the tuition for EMBA

continue with a company that has sponsored your

programmes is hefty and, due to sponsorship from

EMBA is to provide a business plan outlining your

companies decreasing, it could be potentially

determined course of action. Things to consider in-

strapping students with large debt. The knowledge

clude potential gains the company would acquire if

gained from the programme could help extend sal-

they supported you. Provide examples of other col-

aries which would soften the financial blow, but the

leagues who have completed an EMBA programme

real question future students are asking is how to get

in the past to demonstrate investment return. Alum-

employers to pay for the EMBA.

ni of your intended programme would also be useful markers to show tangible success.

When considering whether or not to provide support for their employeesâ&#x20AC;&#x2122; EMBA, the most important

A part of your proposed plan to employers could

Photo: iStockphoto

include a method to spread your knowledge as you

enables sponsorship from alumni. Also, many

are acquiring it. For example, setting up a classroom

schools are now offering more funding of their own.

of your own for coworkers could help fine tune your leadership skills and benefit your employers by get-

The benefits of completing an EMBA programme are

ting an immediate return on their investment.

many for the employee and employer. Be aware that many companies will want to see a return of their

With the economic downturn of 2008, many em-

investment in the form of commitment from the

ployers are finding it too difficult to shoulder some

employee they have sponsored. This commitment

or all of the cost to funding employees for the EMBA.

usually comes in the form of a two to three year

These days, businesses are looking to employers to

contract assuring loyalty to the company. If you are

help share the financial burden. Yet, hardship can

considering changing companies after completion

breed creativity. Consider asking your company to

of the programme, it would not be proper to ask for

provide you paid time off or to participate in the

employer funding. Keep in mind that benefits from

salary sacrifice scheme in which employers pay tui-

your EMBA may come after completion by way of

tion as opposed to salary. Personally, employees can

bonuses or promotions.

refer to the Prodigy Finance Loan Programme which Executive MBA 2015

Tips Photo: K.Y.Cheng

Division in top management team: Bane or boon? The importance of introducing outside professional managers into family businesses is being gradually recognised by company owners. But when it comes to hiring non-family

members, they often have a tendency of choosing people who are similar to them.

FANG YING

s this practice beneficial to company perfor-

“Usually, people tend to hire someone who has a

mance? A study by The Chinese University of

similar background to themselves so as to enjoy

Hong Kong (CUHK) Business School on the top

the harmony this generates,” says Li, who obtained

management team composition of Chinese family

his PhD degree at CUHK Business School in 2010.

firms offers some answers.

“However, our research suggests that this may not be a good idea for family firms.”

To achieve high company performance, the controlling members of family firms should refrain from

The study investigated how the composition of

hiring senior executives who are similar to them-

top management teams (TMTs) influences family

selves. This is the finding of an empirical research

firm performance. It found that family businesses

conducted by Dora Lau, associate professor at the

benefited financially when the “group faultlines”

department of management at the CUHK Busi-

were strong. What is a group faultline? It refers to

ness School, and Li Weiwen, assistant professor at

“a hypothetical dividing line that may split a group

the department of business administration of Sun

into subgroups based on one or more attributes,”

Yat-sen University Business School in Guangzhou.

according to Lau, who has studied the subject of

These family businesses should instead search for

“faultline effects” since 1998.

professional managers whose gender, age, educational level and functional backgrounds are dissim-

She says family businesses are one of the most prev-

ilar to the family managers.

alent business formats in the world. However, exist-

quite limited in scope. That was why they decided to conduct more research on what kind of team composition would work well for family firm performance. “Group faultline size is one of the most important factors that influence firm performance,” Li adds. “Our research is one of the first that has examined the potential positive effects of faultlines.” Conflict is not necessarily a bad thing Examining 262 family-owned companies listed on

“

People tend to hire someone who has a similar background to themselves so as to enjoy the harmony this generates

“

ing research on their TMT compositions had been

the Shanghai and Shenzhen Stock Exchanges over a six year period up to 2010, the study looked into the composition of the TMTs of these companies and measured their firm performance using the matrix of Return on Assets (ROA). It found that the contribution of knowledge and expertise from non-family members had enhanced family firms’ performance. An example of a large faultline is a six-person team, in which four of the members are in their early 50’s and have strong operational management background, while the other two are in their late 30’s and possess an engineering background. On the surface, the big differences within the team could potentially be a source of problems. “Usually, when the subgroups have strong identities of their own, it’s more common to find conflict among the subgroups, and these ongoing conflicts could be harmful for the whole group,” Lau explains. However, Li points out that when it comes to family businesses, such negative effects may not apply. In fact, the study shows that large faultline size is beneficial for the entire organisation because of the large differences among subgroups and the similarities within these subgroups. Executive MBA 2015

Tips

Why is that the case? Firstly, as family firms grow,

the firm?” Lau asks. “We found that when the differ-

family owners may find it necessary to turn to pro-

ence in compensation is big, the positive effects of

fessional managers for help. In this case, profession-

faultlines in organisations disappeared.”

al managers usually bring distinct and non-redundant knowledge and skills to the organisation. As

Unlike other types of organisations, in family firms,

such, it is critical that these professional managers

group faultlines tend to occur more naturally. At the

possess different experience as well as educational

beginning of a family firms’ establishment, family

and functional backgrounds from those of existing

members play key roles in shaping the business

family members.

organisation and normally possess the controlling hand. As family firms begin to expand and grow,

Secondly, if there are a greater number of non-fam-

they require the help of more and more non-fam-

ily members, it is easier for these members to voice

ily members with different expertise. But there is a

their expert viewpoints, especially if these view-

general disparity of power between family members

points differ from those of the family members.

and non-family members. Usually, fellow family members are perceived to be more trustworthy and

“If you are the only person in the subgroup, you

thus get more support. In contrast, non-family mem-

might face scepticism or feel intimidated when try-

bers are more likely to be treated by family owners

ing to speak your mind,” explains Lau. “But if there

as “outsiders”.

are two or three people in your subgroup, then you will be more confident to share your opinion, be-

“The division (or faultline) comes naturally in family

cause you know someone will back you up.”

firms. You can never take it out or erase it,” says Lau. “It’s always there. Fortunately, we can find ways to

Li concludes that a large faultline size is conducive

leverage it.”

to more elaborate and comprehensive strategic decision making, which is essential for a family busi-

In light of this, for family firms that would like to lev-

ness wishing to improve its performance.

erage the positive effects of group faultlines in their TMTs and achieve better performance, Lau offers

Leveraging the positive effects

the following suggestion: Family firm owners should be aware that if non-family professional managers

Despite the finding of the positive relationship be-

are not treated fairly, they can always quit. There-

tween faultlines and family firm performance, things

fore, they should give them more trust and provide

may not be totally straightforward. Some factors

unbiased treatment in return for their commitment

may dilute the positive effects of faultlines in fam-

and contribution. “You should make sure non-fam-

ily firms. For example, when non-family members

ily members are willing to contribute to your firm

are treated less favorably than family members, the

100 per cent,” Lau concludes. “To make that hap-

positive effects of faultlines become weaker. Con-

pen, you can’t sidestep the issue of equality.”

sequently, the firm performance would be reduced. Originally published in CUHK’s China Business “Do you treat family members and non-family members alike? When it comes to executive compensation, do you pay the non-family members according to their achievements or their status within

Knowledge.