Wednesday, July 25, 2012

Why The MBA Is Relatively Useless


I realize that I am about to review a book that is a few years old, and one that has come under a lot of criticism by others in what I call the “academic business profession” and in business circles. The reason for this is likely because Henry Mintzberg – the books author – says that a paradigm shift is needed in the way we educate managers. Paradigm shifts, weather in science, philosophy, or communication are always controversial and always attacked, because they challenge the status quo and entrenched interests. Since there has been so little change in the way MBAs are taught over the decades, it is no surprise that some people suggest Mintzberg lost his marbles.
Mintzberg’s basic problem with management education is that it is completely separate from the actual running of a business. Students are generally given a case study to analyze and come up with a solution to the case study’s company’s problem. What should an organization do with a factory that is no longer productive? What should a company do with a particular asset class?  How does a company deal with shrinking profit margins? What does a manager do with such and such employee? These case studies are about 25 pages long – and from the reading the student is supposed to come up with some solution and make a decision. That’s it. That’s what most management professors think management is – and hence what most MBA students think being a manager is.
"The trouble with “management” education is that it is business education, and leaves a distorted impression of management. Management is a practice that has to blend a good deal of craft (experience) with a certain amount of art (insight) and some science (analysis)" (p. 1)
Of course the problem is that this way of teaching management is sterile and void of any actual context. Organizations are – depending on how you want to look at them – intricate systems wherein sensemaking must happen ala Weick, or continuing cultures created and sustained by communication, practices, and performances, or places where power is both sought, fought, and transgressed. (Most organizational communication scholars will tell you it’s a combination of all these.) 

From a cultural perspective – all organizations are different cultures. Think of the differences between Apple and Microsoft. Or Starbucks and McDonalds. Or Coke and Pepsi. Or a Pentecostal church and a Southern Bapitst church. There are, in fact, as many different organizational cultures as there are organizations. As organizational communication scholars have been arguing for thirty or so years, you cannot understand an organizational culture, without studying that culture in-depth: generally through one of he many varieties of ethnographic research. 
Think about this for a moment. MBA students sit in a classroom and ‘study’ an organization on paper and are supposed to come up with a solution to some sort of organizational dilemma. This type of teaching is well-adapted to get students to do only one thing: do case studies in a classroom. Much like k-12 standardized testing, there’s no ‘there’ there. What they learn by analyzing a case study is about a useful in the real world of managing as filling in the little dots on a standardized test are to successfully going on a date. They are supposed to make a contextless decision. This is Mintsberg’s basic critique.
"An education that overemphasizes the science encourages a style of managing I call “calculating” or, if the graduates believe themselves to be artists, as in- creasing numbers now do, a related style I call “heroic.” Enough of them, enough of that. We don’t need heroes in positions of influence any more than technocrats" (p. 1).
However, businesses aren’t like that. Not at all. They are not static, but constantly on the move. They have different systems, different cultures, different values, different employees, etc., etc. etc. Hence the MBA as taught looks nothing like – and doesn’t prepare people – to actually be managers. Supposedly these MBAs with no experience can walk into an organization and just start making major decisions and taking over.
That’s somewhat crazy if you think about it. You would never let a medical student who’s only done ‘the book learnin’ perform open-heart surgery on you. However, this is exactly what MBA students are taught to think and how business teacher teach them to think. Someone without experience is not going to be trusted to make big decisions: like closing a factory or dismantling a department.
"Put differently, trying to teach management to someone who has never managed is like trying to teach psychology to someone who has never met another human being" (p. 9)
A real manager spends copious amount of time on the floor of the factory, talking with the many people that work in various departments – having conversations with both internal and external clients and customers. He might even check out other factories in his own organization to find out why those particular ones run well, while this one does not. He may check out competitor’s businesses to see how they are run differently. In other words, a real manager gets a deep cultural and organizationally significant education and understanding of the business before he makes any decision.
This is the opposite of what MBA programs teach. No ‘book learnin’ via case study is going to help. It’s like teaching. I may have an idea of how I want to teach a class – maybe a technique that’s dialogical – but the demands of, the size of, and the culture of a particular class may determine that this technique does not work. If that technique is the only one I have in my toolbox, my class is going to be a complete disaster. Embedded adaptation is key.
"In the larger organizations especially, success depends not on what the managers themselves do, as allocators of resources and makers of decisions, so much as on what they help others to do" (p. 9)
Mintzberg correctly points out that making decisions is a really small part of a manager’s job. What he doesn’t mention enough for my taste – and this is my communication bias talking here – is, well, communication. Communication takes up the better part of any manager’s job. Getting to know people, watching their performances (not performance appraisals, mind you, but the way in which people work), the stories and narratives people tell and listen too, the people who are considered heroes in the organization, as well as those considered outcasts. Managing, at its heart is all communication, and learning-on-the job, and then using what one has learned to make decisions than must be made.
To develop a reflective turn of mind, the participants focus on them- selves, their work, and their world, to appreciate how they think, act, and manage; how they cope with the stresses of being a manager; and how they learn from experience to become more discerning—more “critical” in the constructive sense of this word” (p. 300).

So what does Mintzberg suggest? Well, here’s where he gets a lot of push back. Management education should be restricted to practicing managers. The classroom should leverage the managers’ experience. Managers have to be exposed to theories so they can learn to be thoughtful and express themselves. Thoughtful reflection is necessary. Learning is not doing. Learning is reflecting on doing. Move beyond reflection in the classroom to learning from the impact on the organization.    

However, if you consider the art and practice of managing, Mintzberg is on the right track. Which is why I think this would be a great read for #commnerds studying organizational communication. After all, culture and power and performance is what we actually study.






Thursday, July 19, 2012

Marissa Mayer and the Continued Idea of the False Choice

Marissa Mayer is a powerful and successful woman who worked at Google – one of the original Googleheads, in fact – and accepted the opportunity to fix and run Yahoo! and is having a child.

The media has gone crazy over this. Forbes. The Washington PostThe Sun-Times...and...et al. As is typical, it is all the same focus when they realize a woman has attained some sort of position of power. They did it with Carly Fiorena and Hillary Clinton, and even Sarah Palin. (Mind you, I wouldn’t put Sarah with these other women in any other list. There’s no contest there.) More on Fiorena, below.

Can she do the job? Is she a bad example for "our children?" Should women hate her? Why isn’t she taking a full maternity leave? If she can have it all, why can't you? Is she a bad mother-to-be? Should parents hate her? Blah, blah, blah.

I’m waiting for TMZ to start asking questions about the size of her breasts, how much she craves chocolate, and her favorite movie. 

There is really only one thing worth thinking about in regard to her maternity leave decision: Due to her economic position, she can do it all, because she has the opportunity to do it all.

It is true that the educationally and economically disadvantaged do not have the choice to go right back to work. Hell, not merely just the disadvantaged, but most of the advantaged as well: white-middle class people. In most cases, a mother has no choice but to go back to work. Someone has to work to keep the lights on and given that wages have stagnated for 20-plus years, that someone is often BOTH parents. (Not mentioned in most of the news articles, mind you.)

Mayer gets to choose to be a new parent and be Yahoo!’s new CEO. She gets both. Why? Because she gets to choose. In the terms of capability economics she has the freedom to realize her well-being, the kind of life she is effectually able to lead, who can decide what she is able to be and able to do. She gets to choose what is her “functioning.”

Don’t lose me here; this is actually quite simple.

This capability approach to economics deals directly with the situation and the reactions to the Mayer case. To quote directly from the Stanford Encyclopedia of Philosophy:

“Take the following functionings: (1) to hold a job, which will require me to spend many hours on working and commuting, but will generate the income needed to properly feed myself and my family; (2) to care for my children at home and give them all the attention, care and supervision they need. In a piecemeal analysis, both (1) and (2) are opportunities open to me, but they are not both together open to me. The point about the capability approach is precisely that we must take a comprehensive or holistic approach, and ask which sets of capabilities are open to me, that is: can I simultaneously provide for my family and properly care for and supervise my children? Or am I rather forced to make some hard, perhaps even tragic choices between two functionings which both reflect basic needs and basic moral duties?"

In 99% of the cases wherein people are in this situation, they are stuck. Why? Option 2 – for most people is not available. They truly do not have a choice. Not limited choice. No choice. From a holistic viewpoint, they have only one possible functioning. (Which is why when looked at separately, it appears there is a choice, even if there isn’t one.)

Ms. Mayer is not stuck in an either/or situation. She has a both/and situation. She has more ability, more freedom, more possibilities for the realization of her potentiality than the average person because of her economic status. Why does she have this advantage?

That’s called having good health insurance and health care and child care through having excellent employment and educational opportunities in her life - and taking those opportunities and making the most of them – and succeeding economically. That is the kind of opportunity making our country should provide every one. This is how a society opens up and creates and allows for its citizens to become more capable, to be more free, to have more functionings.

Whether or not others’ think she is being a bad parent and horrible mother-to-be by not taking a full maternity leave, or continuing at work - and all that other nonsense - is a sideshow to the real issue. The media is making it appear that every woman and every family has this work-maternity choice. And in this debate one simple fact is overlooked: most do NOT have this choice at all. Period. (And of course none of this would be an issue if she had a penis! Gender bias? You bet!)

She’s getting a lot of snuff for the facticity of being a woman. This media barrage very much reminds me of what happened to Carly Fiorena at Hewlett-Packard. They lambasted her in the media. It was brutal. Every move she made was under heightened scrutiny. She was heartily dissed for buying Compaq and making a number of other moves people thought were short-sighted and bad for business. Then they ousted her in 2005. In fact, they still are giving her hell, years later. 

Of course everyone discounts the historical fact that she took over just as the internet bubble was going to pop – and she got HP through that period – and the economic turmoil that followed the 9-11 attacks, as well. Turns out her moves were the right ones, but she got no credit for them. Rather, the guy who succeeded her got all the credit.

Perspective is everything and here too the media is not doing due diligence. There’s a misconception that Yahoo! is failing, but in reality it is still growing, despite all the missteps by its former management teams. It just hasn't been growing fast enough for Wall Street and much of the financial media, especially when compared to Google, Apple, Amazon, and Facebook, with whom it is always compared. Then again, compared to those, everyone looks like a laggard. Yahoo! has $2B in cash on hand, with only $130M in debt, with a profit margin of 22%. Pretty good baseline numbers for any company. 

I expect to see Mayer dump a bunch of unprofitable stuff and go on a buying spree to acquire new technologies. Most importantly, I expect to see her shake the Yahoo management tree and watch the rotten fruit fall off the limbs. I think she has the chops to change the organizational culture - not an easy task, of course - and get Yahoo! out of its doldrums.

If a man was hired the focus would be only on the finances of Yahoo! and the moves that he would make. Bias? You bet.

I wish Ms. Mayer good luck as both a CEO and a parent.