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| Interview/Henry
Mintzberg |
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| Mintzberg
unplugged |
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| The
management guru speaks on what ails B-schools
today, and why the corporate world would do
well to avoid heroic leaders |
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| Neelima
Mahajan and Indrajit Gupta |
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Henry Mintzberg is management education's
stormy petrel. By his own admission, he
is cynical about things that are too popular.
In his career spanning over 40 years, the
Cleghorn Professor of Management Studies
at McGill University in Montreal, has repeatedly
demolished popular notion. Management education,
especially the way it is right now, is his
favourite whipping boy. He is also a harsh
critic of what he calls heroic leaders --
who think they can waltz into an organization,
and transform it almost single-handedly.
And he blames B-schools for glorifying them.
In a freewheeling interview with BW's
Neelima Mahajan
and Indrajit
Gupta, Mintzberg shares his views
on a host of issues:
- The MBA continues
to be one of the most popular degrees
ever. Yet, you have been one of its strongest
critics. Why?
By giving young people, who have never
managed, the impression that we are turning
them into managers is very dysfunctional.
I believe that even taking people who
are managers and doing what we usually
do in B-schools, which is concentrate
on the business function, does not teach
them management. People learn management
by focusing on their own experience and
learning from their own experience.
- Does the problem
lie with the way management education
is structured currently?
The problem is everywhere. It is in the
very assumption that we can take people
who have never managed, bring them into
a classroom and teach them management.
That is utterly wrong. It gives them a
dysfunctional view of management. It gives
the impression that anybody can manage
anything, only if he has been through
that education. That is incorrect.
The schools are driven by a strategy that
was developed in the 1950s. They are based
on business functions, and rooted in the
disciplines of economics and psychology
and mathematics and so on. They have a
heavy emphasis on research. The view of
management education developed in the
1950s is business education -- that's
not management education at all.
- So what needs
to change if one were to make management
education more relevant?
Management education should be available
only to people who are managers and are
sent by their companies. We shouldn't
have people in the classroom, who are
looking for another job. We should have
people in a classroom who are looking
to do a better job. People who are going
to be better where they are. Not people
who are trying to use the education as
a way to parachute into some other situation.
And once they come in, we should encourage
them to learn from their own experience.
As faculty, we bring concepts, ideas,
various techniques of doing things, cases
and so on. They (students) bring their
experience and the key thing is that they
are able to use what we give them, and
discuss amongst themselves in the classroom
the relevance of that learning for themselves.
In other words, the learning should be
based on people reflecting on their own
experience.
- But haven't
B-schools been obviously successful in
what they have done?
They have been terrible failures in what
they have done. They have been successful
in attracting students, yes. But I challenge
the performance of many, many of those
students. Some perform very well. And
that's not because of solely what they
learned in school; it's because they were
smart people who figured it out. There's
a chart in my book (Managers Not MBAs,
Berrett-Koehler Publishers, 2004) that
lists 19 'superstars' who were chief executives
of major corporations in 1990 and studied
at Harvard Business School. We tracked
them till 2003. Ten of them were total
failures and four were questionable in
terms of performance. So, five out of
19 had clean records. So, yes, I am challenging
what B-schools do. We have created a programme
that does the things that I am talking
about (See 'The Mintzberg Model').
- Is innovation
becoming a problem at B-schools?
Absolutely. And the more famous the school,
the more conservative it is. In England,
you have tremendous innovation. Far, far
more than in the US. But it is not coming
out of the main schools -- Oxford and
London Business School. For innovation,
look at the programme on critical management
at University of Lancaster. Or the one
on purchasing at Bath University. Very
innovative teaching.
- Most schools
are geared to produce only functional
specialists. How can this be corrected?
It's fine. Let them produce only functional
specialists. As long as they don't give
them the impression that they have been
trained to do general management. I wouldn't
quite say functional specialists. I would
say that the schools are geared to train
people in the business functions. So,
they can go into specialised jobs. I am
not sure how specialist they are -- add
a few courses in finance, a few in market
research... But they are certainly ready
to go into those kinds of functions. They
are not ready to study management, to
practise management.
To correct themselves, schools could develop
programmes that focus on management and
the practice of management without mixing
that with the business function.
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The
Mintzberg model
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Nine
years ago, Mintzberg put
together a management programme
where he tried to do away
with the 'defects' of traditional
programmes. "Management
is not marketing first,
finance first, accounting
first, strategy, etc. Management
is not the sum total of
those things. Management
is management, and we have
to build around what we
call mindsets," he
emphasised.
The International Masters
Programme for Practicing
Managers (IMPM) is divided
into five modules of two
weeks each. The modules
are held in five different
countries over 16 months.
The first one, Managing
Self or the reflective mindset,
is held in England. The
next one, Managing Organisations
or the analytic mindset,
is held in Montreal.
The worldly mindset on Managing
Context is held in IIM Bangalore.
"India has a very different
context which kind of wakes
students up to different
ways of doing things,"
says Mintzberg. The collaborative
mindset on Managing Relationships
is held in Japan and Korea.
The last one, the Managing
Change or the action mindset,
is held in INSEAD, France.
The students are all working
managers sponsored by their
companies, who are required
to take time-off for each
two-week module. So far,
nearly 350-400 managers
from as many as 12-15 companies
a year have participated
in the programme. (Incidentally,
Air Deccan's CEO G.R. Gopinath
was one of the participants
about six-seven years ago.)
As Mintzberg says, the unique
thing about this programme
is that "the focus
is on bringing their experience
into the classroom, instead
of building it around functions."
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- Given that
B-schools have had the advantage of a
multi-disciplinary faculty, why did they
go down this path in the first place?
You are right. One of their (B-schools')
great strengths is attracting faculty
from different underlying disciplines
like economics, mathematics or psychology,
sociology or whatever. If you look at
the history, US B-schools were very weak
until the 1950s. They were accused of
being trade schools and doing trivial
things. Then came Carnegie Mellon or what
was called Carnegie Institute of Technology,
where Herbert Simon, (G.L.) Bach and (William
W.) Cooper and people like that had a
different idea (Simon, Bach and Cooper
were the founding faculty of this school,
now called Tepper School of Business).
Their idea was focused on the underlying
disciplines like mathematics, psychology
and economics specifically. But gradually
the functional specialisations became
more and more prominent as people focused
on marketing, finance and accounting issues
-- not on management and organisational
issues. Even strategy has become a specialty
called strategic management -- as if strategic
management is separate from management.
And organisation behaviour has become
a specialty called human resource management.
So even people have become a function
in B- school.
- In your book,
Managers Not MBAs, you say that
schools have a very hands-off approach
to teaching management
The hands-off view is that you can't do
anything in a classroom. That's why Harvard,
in its cases in strategy, focuses on formulation.
But they have trouble with implementation.
Because anybody can formulate like mad,
but no one can implement anything in a
classroom. Whereas if you have managers
who are talking about their own problems
of implementation and formulation, and
focusing on their own experience as managers,
that becomes very powerful.
- What is the
role of industry in influencing curriculum
and encouraging research?
They have a role in supporting programmes
that train their managers and really connect.
The most important place for industry
connect is where it sends its managers,
but it tries to manage that process by
which they bring that learning back into
those companies. We call it impact. How
we manage that process by which they spread
their learning into those companies. That
has to be done in partnership with the
schools giving the programmes and the
companies sending the participants.
If the industry opens itself up to study
and to people who want to study and do
research, that is important. In research,
the faculty takes the lead, in terms of
what subject and so on. But I hope they
study things that are tied to practice.
That doesn't mean that they become consultants
or make recommendations. We have no business
giving 'prescriptions'. Our job is to
bring better and more insightful 'descriptions',
so people in practice can understand what
they are dealing with. But research should
be connected to real concerns and real
issues, and not the abstractions we find
in the library. Companies must encourage
that kind of research and use it where
it is conceived insightfully and written
accessibly.
- How do you
rate the kind of research that's happening
in B- schools?
I maintain that most of research is useless.
If you go into pharmaceutical research
or any corporate research, you'll probably
find that 80 per cent of it is useless
too. The trouble is that you don't know
what's going to be useful.
That's because some people don't connect
very well, others don't think well. Also,
we ourselves tend to judge much of our
own research. We referee our own articles
in our own journals and we decide we should
get money for research ourselves. We are
a bit like a closed shop.
- Moving on
to another area -- organisational culture.
Isn't it a paradox that most organisations
start off as entrepreneurial set-ups where
the strategy crafting process is adaptive,
as you described in the book, Rise
and Fall of Strategic Planning? But
as these evolve, they accumulate bureaucratic
flab. How can that be prevented?
You prevent it from happening by building
a culture that keeps the organisation
fit, energised and keeps people in communication
with each other. You keep it going by
having a chief executive who doesn't sit
far away, and doesn't pretend to know
what's going on by simply reading the
balance-sheet and reports. You get people
on the ground including the chief executive.
We get rid of the idea of top management.
On top of what? Nobody should be on top
of anything. You need a management that's
active, energised, involved. You need
distributed management or distributed
leadership, so people can grab initiative
where they see opportunity.
- A lot of organisations
are searching for the perfect organisational
structure, and many CEOs are also beginning
to realise that the answer perhaps lies
beyond structure. So are structures really
all that important as they are made out
to be?
Structure is the easiest way to change
an organisation. You shift a few people
around, and you call it a change. I draw
an organisation chart on a board -- just
a bunch of boxes. I say this is an organisation.
Then I draw exactly the same thing below
it. And I say this is re-organisation.
You change a few names, you change a few
titles. You move people around and you
think you've re-organised. But a lot of
change in structure happens beyond organisation.
Who reports to whom is also important.
But we give it much too much importance.
For example, I think architectural structure
is probably more important than organisational
structure. By that I mean who sits next
to whom.
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Carly
Fiorina's heroics
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In
his most recent book, Managers
Not MBAs, Henry Mintzberg
says that Carly Fiorina's
stewardship at Hewlett-Packard
is a great example of heroic
management. He systematically
tracked her tenure at HP
starting 2001. When she
joined, it was said that
her mandate was to 'reinvent'
HP from the ground up in
three phases of a year each.
So much so that it seemed
like she was the only person
responsible for the turnaround.
That's a style that Mintzberg
believes is outmoded.
So how do you recognise
a heroic manager? Mintzberg
says they tend to:
- Ignore
the existing business
because anything established
takes time to fix.
- Be
dramatic, striking deals
and merging like mad.
- Focus
on the present, and
do the dramatic deal
now!
- Favour
outsiders over insiders;
rely on consultants
as they appreciate heroic
leaders.
- Use
numbers to assess insiders.
That way you do not
have to manage performance
so much as deem it.
- Promote
the changing of everything
all the time.
- Re-organise
constantly.
- Be
a risk taker.
- Get
the stock price up.
- Cash
in and run -- heroes
are in great demand.
Sounds familiar?
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- Usually managing
a strategy and crafting it is given a
lot of time and energy. Somehow, execution
never gets the kind of share of mind that
it should
What's the use of formulating a strategy
that can't get implemented? You know if
a strategy fails, people blame implementation
mostly because it's the formulators who
are doing the blaming. But if something
fails in implementation, then it means
the formulation was not well worked out
because the formulators did not take into
account the people who were implementing
it. So all failures of implementation
are failures of formulation.
But most of them are, in fact, failures
of something else. They are failures of
the separation between formulation and
implementation. Somebody thinks, and everybody
runs around implementing it. Whereas often
the implementers are the people who know
what's going on, and they can contribute
to the formulation.
- And you are
saying that's often never sought
A lot of organisations block out the ideas
of everybody else -- the people who are
on the ground. We are so captured with
this heroic view of management, of this
great manager who walks in and solves
every problem. MBA programmes tend to
contribute very strongly to that impression
among people as well.
- In this whole
game of managing ideas across the organisation,
how critical is cultural diversity?
The idea of cultural diversity is a myth.
Is IBM not an American company? Is Matsushita
not a Japanese company? There are few
companies that have a mix of management
culturally. Some of my colleagues undertook
a study. They defined a truly global company
as having 20 per cent of its sales in
three major markets - North America, Europe
and Asia. They found rather few companies
that met that criterion.
- We have developed
various stereotypical images of leaders.
Do you think it is time to change the
mould?
Absolutely, we need
to get rid of heroic leadership. We need
to get much more engaging leadership.
And I think Mahatma Gandhi is a wonderful
example of someone who was engaged, on
the ground
He led by example.
Such leaders are committed to an organisation,
committed to a job. They are not sitting
on the edge of their chair waiting to
leap to some better situation. That's
one of the troubles with MBA programmes.
They train people who tend to be mercenary.
They just want to push themselves ahead,
and get better jobs. They don't care about
their organisations or their situations
very deeply. Can you imagine the expression
'Mahatma Gandhi on the fast track'?(Laughs)
- If ideas are the heart of competitive
advantage, how should organisations be
designed so that ideas can flow seamlessly?
What sort of an organisational architecture
do we need to think about?
Well, it's the concept of the network:
an organisation as a network of interacting
people, rather than a hierarchy. Think
of it as webs and networks in which people
communicate. I put a hierarchy, and ask
where do you find management. Everyone
says on top. I draw a hub, a circle, and
I ask where do you put management; people
say in the middle.
Then, I draw a network of interacting
individuals and ask where do you put management
now. If they say on top, I say a manager
on top of the network is out of the network.
A manager in the centre of a network,
centralises it and it ceases to be a network.
When people realise this, they say a manager
has to be everywhere in the network. I
say, yeah, he also has to be everyone.
You need distributed responsibility. This
doesn't mean you don't have people who
have final authority, but you have to
diffuse the power and the authority to
people who have knowledge on the ground.
- In this whole game of managing ideas
across the organisation, how critical
is cultural diversity?
The idea of cultural diversity is a myth.
Is IBM not an American company? Is Matsushita
not a Japanese company? Is Lufthansa not
a German company? There are very few companies
that have a real mix of management culturally.
Some of my colleagues undertook a study.
They defined a truly global company as
having 20 per cent of its sales in three
major markets -- North America, Europe
and Asia. They found rather few companies
that met that criterion.
- But lots of B- schools do make a
big deal about diversity
Yeah right. They are teaching American
management style, and calling it global.
An American school that boasts about diversity
boasts that 20-30 per cent of its students
come from abroad -- maybe 30-35 percent
at the most. Any class that has 60-70
per cent Americans, who don't tend to
be shy in a classroom, is hardly diverse.
If you go to INSEAD (in France), you see
real diversity because probably no more
than 20 per cent are from any one country.
You get international experience there.
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