UNICON Directors’ Conference 2009

1. UNICON Directors’ Conference 2009 The Voice of the Client: “What do we expect from a Business School in this crisis” Urs Bernhard

2. TATA India’s largest business Group Diverse businesses in 7 sectors International income 61% of Group revenue Operations in over 80 countries Over 300,000 employees Group revenue FY 2008: $ 62.5 bn Group profit FY 2008: $ 5.4 bn

3. TATA Group Purpose Improve the quality of life of the communities we serve through leadership in sectors of national economic significance

4. Question 1: A few talent management and organizational effectiveness challenges facing our companies during the current economic crisis and how they are responding to these challenges. Challenges Responses No clear answer regarding the future Budget and cost pressures Not much focus on development Indirect measure to cut external training Was the past a “training bubble”? • Motivate and provide clear direction for talents • Management is looking for short term solutions • Talents are “used” in key business projects • Travel budget cuts • How sustainable are the training concepts?

5. Question 2: Evolving changes in the needs and approaches to leadership education and development for their executives. To what extent do companies perceive their executive s dealing increasing with complexity and ambiguity and how are they preparing them to do so? Evolving changes • Practical (in-house) designed training courses • Lack of experience to deal with the crisis • Development of “compressed” training and development needed • High level of flexibility is needed • “Worst Case Analysis”, “Scenario Planning” simulations may be an option • “Direct Line” to clients needed – Listen to the client!!!! • Back to e-learning?

6. Question 3: Ways in which executive education departments in business schools can help address these needs, and what the schools need to do differently to increase their effectiveness as potential partners. Needs for change • Start doing more customized programs • Address the core business and people issues and design the program around does needs • During the crisis, the expectation is to work on “increasing efficiency” and “saving costs” • Be more flexible at less costs... (discounts?) • Change your pricing model and look at the long term (e.g. business cycle vs. single project) • Practice a more holistic approach and align your competence to the clients needs – Listen…

7. UNICON Directors’ Conference 2009The Voice of the Client Some suggestions: Teaching more integrated leadership training vs. pure business techniques. Teaching more OD/MD courses which address overall organizational issues (e.g. leadership, organizational climate). Business schools could become more socially responsible vs. only teaching analytical skills.

8. UNICON Directors’ Conference 2009The Voice of the Client It appears that business schools teach sometimes in a vacuum…there is not much practical application. We need a bridge from theory to practice. Most important: Business Schools should help to make managers more effective on the job: Actively Supporting the implementation part of business. Don’t underestimate newcomers and new approaches in the field (e.g. McKinsey moving into leadership development)

9. UNICON Spring Conference 2005The Voice of the Client Use more an Action Learning approach vs. “Off the Shelf” programs (e.g. generic Case Studies) Include Executive Coaching as a long term intervention Update your Business Model – Times have changed… Use your core competence (research based approach, diverse faculty) and align it to the changing customer needs

10. UNICON Directors’ Conference 2009The Voice of the Client Last but not least: Business Schools should be able to measure the effectiveness of an executive program (e.g. ROI, business impact). Business Schools should provide companies with an overall business approach (e.g. holistic approach of business implementation - leadership from strategy to execution).

11. UNICON Directors’ Conference 2009The Voice of the Client Final Question: Business Schools may want to examine their own failures in this crisis. What did they advocate before the financial crisis (over-enthusiasms, no limit approach, social responsibility, etc.). Examine what they could learn from this experience…

12. You must become the change you want to see Mahatma Gandhi THANK YOU! urs.bernhard@gmail.com