Management education needs to change according to new CEO study

25 06 2010

In 2008, the United Nations invited Ashridge and others to lead a CEO survey to understand the perspectives of the business community on the role of management education in helping organisations to make sense of and adapt to a changing global context.

The results were compelling: 76% of CEOs thought it was important that senior executives in their organisations had the mindsets, skills and capabilities to lead in a changing global context marked by trends such as climate change, resource scarcity and doing business in markets characterised by poverty, corruption and human rights abuses.

Yet fewer than 8% thought either their own organisations or business schools were doing a very good job of developing these mindsets, skills and capabilities.

This week, 1300 business leaders have been gathering in New York for the United Nations Global Compact Leaders’ Summit, convened and addressed by Secretary-General Ban Ki-Moon. Notable speakers have included Chairs and CEOs from Unilever, AREVA, Petrobras, Bank of America, ENI, China Minmetals Corp, Tata Sons, PwC, Accenture and many others.

As an input to a forum on management education held as part of this summit, the UN again invited Ashridge and EABIS to take the pulse of the business community on management education, this time drawing on data collected as part of a CEO survey conducted by the UN and Accenture.

Headlines from the UN Global Compact-Accenture Study are:

  • 93% of CEOs believe sustainability will be critical to the future success of their companies.
  • 80% believe a tipping point where sustainability is embedded in the core business strategies of the majority of companies globally will occur within the next 15 years. 54% believe this tipping point will be reached within the next ten years. 

These findings mark a significant shift in thinking since a similar CEO survey conducted by the UN and McKinsey in 2007.

Key findings relating to management education are:

  • 88% believe it is important that business schools develop the mindsets and skills for future leaders to address sustainability. 
  • CEOs believe this is the second most important change that needs to occur for a tipping point to be reached, broadly equal in importance to the actions of customers, investors and government regulation.
  • Six out of the sixteen industry sectors surveyed said this is the single most important change that needs to occur. 
  • One in four CEOs say that lack of skills and knowledge among senior and middle management is one of the top three barriers to them as a CEO implementing an integrated and strategic company-wide approach to sustainability. 
  • 86% say their organisation should invest in enhanced training of managers to integrate sustainability into strategy and operations.  
  • CEOs say engaging with business schools to shape the next generation of leaders should be one of the top three strategic objectives of the UN Global Compact over the next five years. 
  • This isn’t just about companies in a minority of regions or sectors. These findings are consistent across different regions globally, across different industry sectors, different sizes of organisation, and across publicly traded, privately owned and state owned organisations.

These findings underline the timeliness of Ashridge’s research programme ‘Leading Organisations of Tomorrow’, which is exploring innovation in leadership development through the experience of eight pioneering organisations that, having recognised the need to adapt to a changing context, have integrated a sustainability orientation into their leadership development strategies. These organisations include IBM, Ernst & Young, HSBC, IMC Group, Bovis Lend Lease, BT Group, Fairmount Minerals and InterfaceFLOR.

The UN PRME analysis of CEO attitudes on management education led by Ashridge and EABIS is here:

The full UN Global Compact Accenture CEO study can be found here:  

The invitation to the Ashridge Leading Organisations of Tomorrow Symposium on October 14 2010 is here.

Copied  below is an excerpt from the commentary by Kai Peters, Ashridge’s CEO, published in the UN PRME-Ashridge-EABIS analysis:

“The clear message from these findings is that the debate about whether the sustainability agenda is a real issue is over. The question now is how should business schools address sustainability strategically. As the 2008 PRME-Ashridge-EABIS study found, CEOs think this is about more than an optional extra on ethics or new modules on old courses, it is about ensuring the entire management development process is built around helping today’s and tomorrow’s leaders develop the mindsets, understanding and skills to lead in a rapidly changing global context.
 
“For this to happen, business schools don’t just need a few specialist faculty. They need all of their faculty to understand sustainable development and see the implications for their own particular areas of expertise, whether that be leadership, strategy, finance, or marketing. As business schools, we need a much stronger emphasis on faculty development across the board.
 
“It would also be helpful if the various accreditation and rankings bodies could adapt their criteria to give greater recognition and reward to those institutions that are taking the lead in innovating.
 
“At Ashridge we have been experimenting with new approaches for a number of years, and learning from our experiences. We are also leading a major research programme on innovation in leadership development, looking at the experience of organisations that have pioneered new approaches to developing leaders in an age of sustainability, to understand the lessons they have learnt about how to do this well and the wider implications for business schools. Innovative experiential learning approaches are needed. We do not have all of the answers, but we firmly believe that this new agenda is central to business schools in the twenty-first century. We are determined to play our part.”

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