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Uday Salunkhe - strategies for being a global mba player

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This article gives an in depth analysis on the strategies for becoming a global MBA player. It has been co- authored by Dr. Uday Salunkhe, Director of the prestigious Welingkar Institute of Management …

This article gives an in depth analysis on the strategies for becoming a global MBA player. It has been co- authored by Dr. Uday Salunkhe, Director of the prestigious Welingkar Institute of Management and Research.

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  • 1. STRATEGIES FOR BEING A GLOBAL MBA PLAYERABSTRACT: Global Competitiveness is the tool for success in all spheres.Even education. Especially management education. This research papertakes the positive favourable factors aiding the process of making ourmanagement educational institutions globally competitive. The route taken isthe trend towards Indians making their mark as global citizens, on everyfield globally. By identifying specific cases through primary research thepaper unfolds the possibility that we can become a global MBA player andthat there is scope for Indian management schools to become globallycompetitive.INTRODUCTIONThe mantra today is globalization be it industry, economics, trade oreducation. The world over energies is being synergized to becomesuccessful global player in every field. The environment and the challengesin the growing MBA education field with its tremendous growthopportunities are exceptional and unique.There has been a tremendous growth of management institutes in oursociety. Every year about 20,000 students pass out of management schools,the demand is very high. 1
  • 2. India has over 250 universities, deemed universities, institutes of nationalimportance and over 11000 colleges. This itself makes India’s educationsystem one of the worlds largest. The number of colleges for professionaleducation has gone up from a mere 208 in 1951 to over 2300 in 2001.This paper attempts to unfold in the following manner:1. India’s demand in the foreign markets2. Current educational scenario3. Challenges faced by Indian B schools4. Best practices the world overIndia’s Demand in the foreign marketsAt the recent Nasscom conference in Mumbai, management guru LateSumantra Ghoshal began his presentation with a slide that stated, “ThankYou”. He was expressing his gratitude to the huge audience of softwareindustry professionals, whom, he felt, were largely responsible for the new,respectable image that Indians now enjoyed globally. He was seeing, heexplained, a newfound sense of pride and confidence among the Indians inthe class he taught at the London Business School. Indians abroad werefinally proud to be Indian. And, the super success of the Indian softwareexports industry was the reason.Indians are going places, not just because they want to but also because theyare in hot demand. Increasingly, India heads of multinationals are beingasked to take charge of a larger chunk of global operations. It’s not increased 2
  • 3. multicultural sensitivity in the West that’s landing them the plum postsabroad. Rather, it is the success of their Indian operations that is makingtheir international office choose them to replicate their marketing mantra onan international scale.Indian executives making it big and taking on global responsibilities comefrom across all sectors: consumer goods, pharmaceuticals, informationtechnology, banking and even publishing. They all say there’s no place likehome, but hey, someone’s got to get the job done. Indian students are doinga great job all over the globe.The Global CitizensIndia’s Demand for Indian Management Professionals Raghuram Rajan, Chief Economist IMF, alumni of IIMA, PHD Wharton and Professor at Chicago University. Deepak Jain, Dean of Kellogg School of Management and Business Week’s latest issue ranked him as the Best Dean. Naina Lal Kidwai heads South East Asia for HSBC, the first Indian women to pass out from Harvard Business School.We Indians are the wealthiest among all ethnic groups in America, evenfaring better than the whites and the natives. There are 3.22 millions ofIndians in USA (1.5% of population). and, 38% of doctors in USA are Indians. 12% scientists in USA are Indians. 36% of NASA scientists are Indians. 3
  • 4. 34% of Microsoft employees are Indians. 28% of IBM employees are Indians. 17% of INTEL scientists are Indians. 13% of XEROX employees are Indians. This is proof enough illustrating the glorious heights reached by educated Indians.India’s Educational ScenarioOur Rich HeritageIndia has been the seat for learning and education since ancient times.Though a great man like Aryabhatta didn’t meet the same fate as Socratesand Galileo in their countries due to some reasons, India was a great learningcenter with universities Nalanda and Takshishila, metropolises Pataliputraand Ujjaini, emperors like Chandragupta Maurya and Samrat Ashoka,scholars like Pannini, Aryabhatta and Kautilya. India has a fair share ofenriching the worlds education with the techniques of algebra andalgorithm, the concept of zero, the technique of surgery, the concepts ofatoms and relativity, the game of chess etc.Yuan Chawng and Tsing who resided as students at the Nalanda Center ofLearning, described it as a residential university with a population of 8500students, 1501 teachers and other staff members. It provided food, clothing,bedding, tuition and even free medicine to the residents. It was supported byliberal grants for this purpose by royal and private philanthropy. This givessome idea of the reputation of India as a learning center when there were noroads, transport to travel from one country to another. 4
  • 5. The Arabs borrowed so much from India in the field of mathematics thateven the subject of mathematics in Arabic came to be known as Hindsawhich means from India.Sanskrit is the mother of all European languages germinated in India.Sanskrit is the most suitable language for computer software (report inForbes magazine, July 1987) and Indians have created it.India’s Advent in Management EducationIn 1950, the Department of Commerce of the Andhra University started thefirst M.B.A. programme in India. In 1963, Indian Institute of Management,Ahmedabad was set up in collaboration with the Harvard Business School.The 1950s and 1960s witnessed the growth of commerce education andthe1970s and 1980s witnessed the growth of Management Education inIndia.Management courses have become Academic Courses rather thanProfessional ones. Management Institutes, barring a few exceptions, havebeen reduced to commerce colleges. There is an urgent need to restructuremanagement education to meet the new challenges of the 21st Century.Probably the biggest challenges management education has to deal with inthe e-commerce explosion are how to train and develop experienced faculty,how to recruit and nurture new faculty, and how to keep the classroomsstocked with capable teachers while all that is going on. Clearly, what ishappening in business schools today is being very significantly affected bye-commerce. What is important is that schools understand it better, use itbetter, do more research on it, and have it in their curricula. E-commerce is 5
  • 6. going to be pervasive throughout the curriculum in every area.One of the most important developments in recent times is India’s talks atWTO on allowing opening up of foreign education services. The greatestimpact of WTO control over higher education would occur in developingcountries. These countries have the greatest need for academic institutionsthat contribute to national development, produce research relevant to localneeds and participate in the strengthening of civil society. Once universitiesin developing countries are subjected to an international market placeregulated by WTO, they would be swamped by overseas institutes andprograms intent upon earning a profit and not contributing to the nationalincome.Non-traditional Service ProvidersA significant global trend in the field of management education has been asharp increase in the number of nontraditional service providers offeringbusiness programs. Corporate universities and alliances between businessesand academic institutions are revolutionizing the offerings available tostudents pursuing graduate management programs.In order to produce graduates who are fully prepared to assume managementresponsibilities, colleges and universities have realized the necessity ofoffering management education directly applicable in the business world.Alliances between academia and industry have been pursued in order toprovide students with an education that blends research with practicalapplication. These coalitions benefit everyone involved: corporations gain an 6
  • 7. element of research and scholarship from the presence of on-site professors,while academic institutions are able to make their programs more applicableto the real business world by offering courses taught by experiencedmanagement practitioners.According to Prof Dipak C. Jain, the Dean of Kellogg School ofManagement, it is imperative that business schools link themselvesadequately with the corporate sector, or else they would find themselves far-removed from the reality check. He believes that the time has come forbusiness schools to look at creating "corporate residency programmes" in thesecond half of the second year of their Masters in Business Administration(MBA). In his words, "henceforth, business schools are not to bedifferentiated on the quality of analytical skills imparted by them. They willhave to be differentiated on the quality of intangibles (people skills) thatthey can impart to their students".These alliances have led to further innovations. When corporationscontribute input into academic programs, they often are able to pinpointwhere course redundancy occurs. This expert knowledge has resulted in anew method of instruction. This trend in courses oriented to experiencedexecutives is a shift away from "just-in-case" learning-the traditional methodin which business students are taught everything they might need to do toknow - to "“just-in-time" learning, which provides students with just theessential aspects of traditional business programs in a highly streamlined,efficient package. 7
  • 8. The drivers accelerating the growth of Management Education are:1) Executive ProgramsA growing number of professionals and executives are turning to businessschools and corporate universities in order to upgrade their own knowledgeof the industry. Institutions are meeting this demand with a pronouncedincrease of degree and non-degree programs to meet the needs ofprofessional clients.Executive MBA programs and professional development courses aregrowing in popularity among business professionals. Both types of learningacknowledge the fact that individuals do not necessarily wish to leave theirjobs in order to pursue educational goals. As a result, most programs forexecutives are extremely streamlined and operate as much as possibleoutside conventional business hours. The increasing demand for executiveprograms underscores the importance of lifelong learning. As careersadvance and interests evolve, lifelong learning allows business professionalsto keep up-to-date with modern trends and advances in their particular fieldof interest.2) Management and Social DevelopmentA growing trend in management studies is in providing a synergy betweenthe corporate and social development sector. Take the case of the S.P.JainInstitute of Management and Research. Their DOCC Program provides anopportunity to network with the local community, meet challengingsituations and endeavor to provide solutions that are beneficial to theorganization as well as to the under-privileged sections of society. 8
  • 9. 3) Global Tie-upsFor those who prefer the tag of a foreign degree without the stepping out ofIndia, students now have the option of an overseas degree, right here athome.CHALLENGES FACED BY INDIAN B – SCHOOLS TO BEINGGLOBAL PLAYERSOnce upon a time this nation’s ancient universities in Nalanda andPataliputra attracted students of mathematics and the sciences from aroundthe world. But after a brief, post-indepen-dence period when there was asurge in the inflow of students from several newly independent, especiallyAfrican countries, India’s institutions of higher education have beenbanished to the corners of the radar screens of students around the world.Currently despite relatively rock-bottom tuition fees payable, there are amere 8,145 foreign students in the country’s 12,500 colleges and 305univer-sities, an almost 50 percent fall from the peak number of over 13,000in 1993-94.Certain factors contribute to this. They are:1) InfrastructureOne of the single most important factors which contribute to the inability ofIndian B-schools to compete with their global counterparts is the lack of aninfrastructure. Often, one finds that a B-School’s growth is impeded onaccount of its poor infrastructure – which may be in terms of an informationinfrastructure, i.e. providing students with dedicated terminals having high 9
  • 10. speed access to the internet or more basic issues pertaining to providingclassrooms and learning environments which simulate a pseudo corporateenvironment. The austere “comfort levels” provided by India’s perpetuallycash-strapped institutions of higher education which are patheticallydependent upon handouts from indifferent central and state governments, isa major disincentive to foreign students who tend to believe that there ismore to education than class attendance.In addition we need to construct more special hostels for foreign students tocreate an inviting and conducive environment for them. Right now only afew universities — Delhi, Pune and MAHE (Manipal Academy of HigherEducation) have built hostels which cater to the needs of foreign students,”admits Dr. Veena Bhalla under secretary of the Delhi-based Association ofIndian Universities (AIU).2) FacultyA lack of talented faculty prevents most B-Schools from providing qualityeducation which truly adds value to the Indian MBA student. One of thereasons for this might be the disparity in salaries drawn by a teaching facultyand that offered by the corporate world. This predictably leans heavilytowards the latter. This prevents top – notch talents from India Inc. fromentering the teaching arena. A recent trend started by the much talked aboutISB or The Indian School of Business, Hyderabad, is to bring in faculty fromthe US or other international destinations. However, with an averagecompensation which is barely about half of what is being offered for a 10
  • 11. similar position in a US university, the quality of teaching staff obtainable isdebatable.Another problem is the shortage of ‘core’ faculty. A number of managementinstitutions operate with a skeletal staff of four to five core faculty memberswhile the rest are visiting faculty, who often do not have the time orinclination to commit to individual needs of students.Besides, Indian universities have a significantly larger student to facultyratio than their global counterparts. This makes it difficult for students tohave individual attention and discuss their problems with professors on a one– to – one level.3) Poor ManagementMost B-Schools in the country are managed by traditionally run educationaltrusts who lack the vision to take Indian B – Schools to a global platform.For competitiveness on a global scale it is imperative that these institutionsare professionally managed, just as a company must be professionallymanaged in order to maximize its profits.4) Lack of Industry interfaceIndian B-Schools provide little interaction with corporates as compared totheir global counterparts. This tends to leave students only with academicknowledge but with little or no idea of what goes on in the real world. 11
  • 12. 5) FundingFunding is a major issue for most business schools across the country.Besides the Indian Institutes of Management and a handful of other instituteswhich are government funded, most institutes are privately funded. Moreoften than not such institutes are plagued by problems of inadequate fundsfor developmental activity. Institutes need to find innovative ways to raisefunds such as taking on live industry projects and obtaining funding from theindustry.6) Lack of students with work experienceThe average age of the Indian MBA student is about 23 years, as comparedto the average MBA student in say, the US, which is about 28 years. Whilemost US business schools of repute stress on a minimum of two years ofwork experience as a prerequisite, the same does not hold true for Indian B-Schools. A large percentage of Indian MBA students have little or no workexperience, which perhaps does not let them identify with business situationsas well as their American counterparts.7) OverregulationA number of management institutes operate under the jurisdiction of variousstate universities. Such institutes are invariably bogged down by red-tapismwhich is an unmistakable feature of most State Universities. The result,students end up learning old and outdated syllabi, sometimes unchanged foras much as 10 – 20 years.Likewise even for students coming in through central governmentorganizations or ministries, the admission process is complex and cumber- 12
  • 13. some. Moreover there’s no promotion abroad of India’s higher educationsystem by our embassies and high commissions,” says Prof. S.C. Lakkad,deputy director of the highly rated Indian Institute of Technology, Bombay(IIT-B).8) Redefining the student – teacher relationshipThe relationship between the institutions and the student community,between the teachers and the students must undergo major changes. Forinstance, The students’ active participation in the process of learning on theirown initiative will remove the one-sided authoritarian teacher-studentrelationship. The teacher’s authority will now be based on his ability andcreativity to contribute and help students to learn on their own.Though there is a dawning awareness within the somnolent educationministries of the central and state governments of the importance ofattracting larger numbers of foreign students into India’s tertiary educationinstitutions, inevitably there isn’t a sense of urgency about promotingcampus diversity. Yet commonsense dictates that in a rapidly globalizingworld in which trade barriers are collapsing, it is important to attract scholarsfrom abroad to study here and go back with positive images of the country.The dividends of campus diversity will be diplomatic and trade benefits inthe long-term and higher academic standards and upgraded facilities for allin the immediate future. 13
  • 14. Best practicesA B -School should be a research-driven school because thought leadershipholds the key to change management and excellence in managementeducation comes through extensive research.I.) Indian School of Business, Hyderabad Tie up with Wharton Business School, Kellogg School of Management and London Business. A unique partnership with world’s leading business schools: Kellogg School of Management at Northwestern University, the Wharton School at the University of Pennsylvania, and the London Business School(LBS) has infused the best and latest in global management techniques and thinking into the school’s academic programmes. Rajat Gupta, Sr Partner, Mckinsey is the Founder member Boards of Members are prominent business houses from India. High profile Professors of Practice like C Rangarajan, Narayanmurthy and Rajat Gupta Faculty of International repute from UCLA, University of Texas, Minnesota University, Chinese University, Hongkong. The Dean, Vijay Mahajan is the Ex - Dean of McCombs Business School, University of Texas, Austin International mix of students from Asia, USA and India with an average 4 years experience. Final degree is signed by all the Deans of Wharton, Kellogg and ISB. Global scale campus with all self-contained facilities for students and faculty for on going interaction beyond the classrooms. 14
  • 15. Global Practicum: 7-10 students from ISB and 7-10 students from Wharton work together on a live project in any countryII.) Welingkar Institute of Management Development and Research 55 (23%) students completed their Global internships in 2003 in USA, Japan, Kenya, Ghana and Dubai. Some of the students are placed globally (Executive level) Alliances with 4 International Universities through IMBA Programme; Temple University, Philadelphia, USA (since 2002).Hamamatsu University, Japan (since 2002).CASS, Graduate school of International management in SCM and also Bamberg University, Germany. Alliances with 2 International bodies: Association of Overseas Technical Scholarships (AOTS), Japan (since 1998),Information System Audit & Control Association (ISACA-USA), Mumbai Chapter (since 2000) Global Practicum for the IMBA Programme; where the students work on start up companies exclusively. Campus has a recreation centre, gym, yoga and meditation cell, amphitheatre besides a world-class wireless IT infrastructure. Recommended Strategies to Become A Global MBA Player Visionary Strategic Leadership Enhanced B school Industry Interface Nurturing Intellectual Capital Global Accreditation and Best Practices Promotional Strategies with Roadshows and Embassies marketing India as a destination abroad. 15
  • 16. CONCLUSIONAs we can judge, the times are exciting as well as turbulent. To be in theeducation sector as an MBA player, is a path strewn with thorns, withblooming orchards laden with fruit, noticed in the distance. MBA instituteswill need strategic leadership and leaders who need to be more than mereacademicians.They need to be leaders of action and global vision to leverage the corecompetencies of the Indian management ethos and merge it withinternational flavour.BIBLOGRAPHY• Business World 2003• The Times Of India• www.minisrtyofeducation.com• www.educationonline.net[Prof Dr Uday Salunkhe is the Director of Welingkar Institute ofManagement Development and Research, Mumbai. Prof Ms Ketna L Mehtais the Associate Dean, Research and Ms Muskan Mittal is the first yearManagement student]Author’s Profile 16
  • 17. Prof. Dr. Uday Salunke Director - Welingkar Institute of Management is amechanical engineer with a management degree in Operations, and aDoctorate in Turnaround Strategies. He has 12 years of experience in thecorporate world including Mahindra & Mahindra, ISPL and other companiesbefore joining Welingkar in 1995 as faculty for Production Management.Subsequently his inherent passion, commitment and dedication toward theinstitute led to his appointment as Director in 2000. Dr. Salunkhe has beeninvited as visiting fellow at the Harvard Business School, USA andEuropean University, Germany. He has also delivered seminars at the AsianInstitute of Management, Manila and has been awarded "The YoungAchievers Award-2003" in the field of Academics by the Indo AmericanSociety recently. 17