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Are B-School Grads Ready for a Greener Future?

April 23rd, 2009 @ 5:07 am

2 Comments

Categories: Executive Education, Green Business, Uncategorized

Tags: Industry, Blog, Business School, Blogging, Strategy, Internet, Management, Jessica Stillman

  • The Find: With green issues increasingly on the agenda in Washington, one blog argues that business schools need to better prepare managers to handle the threats and opportunities presented by the rising tide of green awareness and regulation.
  • The Source: A post on the Columbia Business School Public Offering blog.

The Takeaway: As yesterday’s BNET Intercom post for Earth Day makes clear, with a cap and trade scheme for carbon emissions in the offing and green jobs a hot talking point among politicians, green policy is sure to impact business whether business prepares for it or not. In light of this, the Public Offering blog argues that business schools need to step up to the plate and prepare the business leaders of tomorrow to understand and deal with the changing regulatory landscape and the evolving energy situation. Their argument:

There remains a general lack of expertise on the way that business intersects with the environment. A focus on environmental issues appears likely to follow the same adoption path that the Internet experienced in the mid-to-late ’90s: from novelty, to practice by a few early adopters, to acknowledged competitive advantage, to business-as-usual.

Today, some of the world’s largest and best-run companies, including DuPont, GE, Sony, 3M and Coca-Cola, have already recognized the reality that their industry landscapes will be profoundly impacted by a greater focus on the environment…. Given the direction in which these industry bellwethers are moving, business schools must start paying attention.

While this Public Offering post may be geared towards persuading B-schools to change their ways (and pitching Columbia’s own green credentials), the idea that the ability to manage green issues is a scarce and valuable talent that is much in demand is also relevant to the individual manager. How so? Take a look at this podcast explaining how middle managers can develop skills in managing sustainability to get promoted.

The Question: Do MBA programs adequately prepare students to handle environmental issues that impact business?

(Image of cheerful green activist with sign by greenforall.org, CC 2.0)

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    exaviator

    04/23/09 | Report as spam

    I disagree. If the candidate has...

    ... a solid background in financial analysis, an appropriate technical foundation (suited to the technology of the business), and solid marketing skills, what sorts of "specialized 'green'" knowledge are needed?

    Example #1: When I ran an electrical test facility and we targeted energy reduction, the most important decision driver in adopting regernative power to the grid was payback on the investment. The concept that convince our supplier to invest in the project on a savings-share plan was based on pretty fundamental financial principles. Implications of capital leasing ended up being most important, and negotiations with the utility didn't need to come from a Professor of the Green Department.

    Example #2: When I was assigned to an electronics business, my plant management team and I applied basic chemistry and circuit fabrication knowledge to address aqueous cleaning methids, and, later, lead-free solder. (BTW, the applications-specific knowledge needed for field performance of lead-free components and solder were not something that ANY MBA program will teach.)

    Example #3: Now, as I provide guidance to sales teams on "sustainability" Clauses in contracts with European customers, understanding of basic Contract Law, as well as concepts of Damages and how they may be assigned, is the most important aspect of my role as an executive. Details of environmental regulation over VOCs, Heavy Metals, etc. will never be MBA topics -- they require the expertise of specialists.

    Examples #1 and 3 show that a solid Business education answers your fundamental needs; example #2 demonstrates one needs sufficient technical knowledge in the industry one chooses.

    A "Green" MBA will be either (a) like one of the many overspecialized undergraduate designations, an expensive and unnnecessary label, or (b) a distracting accessory to the B-school sales pitch.

  •  
    2

    albana_b_v@...

    04/24/09 | Report as spam

    RE: Are B-School Grads Ready for a Greener Future?

    I'm afraid the word "green" is misleading; it is "sustainability oreinted B-school that we need as a sustainability oriented management includes more then the green/environment protection aspect.The difference between a "green" executive and a normal one is that the first would take decisons based on a systemic perspective and considers the long term impacts of the decisions taken today, and not simply to confine with the letter of law; the second would take decision based on what is legally right and good for the next quaters' bottom line. We do not need to search hard for examples; enough to refer to the financial industry of nowdays and one would see the point of having "sustainability" oriented B-School Grads... Bus, as long as business (and manager's) results are measured on quaterly bases we can only dream about green or sustainability oriented managers and B-schools.

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