Michael Aldous, Director of International Communications IE Business School
The phrase “faster than ever” is currently in vogue. Indeed, the idea that change is happening “faster than ever” has become a reality that we all have to face. Rapid advancements in technology and subsequent developments in economic and business models are having a profound effect on governments, corporations and individuals. These processes have served as a catalyst for globalisation, creating highly complex and rapidly evolving work environments for managers and leaders. Understanding and managing complex change on a global, regional and even local level is now a key management skill.
Management education (and particularly the MBA) played a central role in defining the emergence of management as a discipline in the 20th century. Moreover, the continuing rise in popularity of the MBA bears a direct relation to the perceived importance of good management. As the 21st century unfurls, however, the paradigms of good management are undergoing a major shift, driven by the needs of a global economy. When you begin to think about the type of MBA program you want to pursue, it is important to keep in mind the wider requirements and realities of the organisations and sectors you will enter after the program. Competing in the global economy requires distinct attributes and awareness.
It is unlikely that you would see a specific module on international business at many European schools, because most of the schools teach nothing but international business. The teaching methodologies and experience are entirely focussed on understanding business and management from a global perspective. This is because the ideologies of the European institutions are shaped by the geographic and economic diversity of Europe. The European Union now encompasses 27 countries, with widely divergent economic and social landscapes. The ease of cross border migration of labour and capital has created a fluid and diverse business environment. This situation greatly influences the focus and models of business schools in Europe.
The European model of management education centres on preparing managers for the global market. A classroom at any of the top European schools will be a highly diverse place. At IE Business school 90% of our International MBA students come from outside Spain, with around 57 nationalities from all five continents represented on the program.
Such diversity is commonplace in all the top schools in Europe. In the context of a global economy, learning from and working with such a diverse group of people is an invaluable experience. It is often said that you learn as much if not more from your fellow students than you do from your professors on an MBA program. A great deal of emphasis is placed on preparing participants to work within diverse, international teams, equipping them to manage complex cross-cultural issues through the daily interaction and challenge of a highly international environment.
Spain enjoys a distinct cultural and economic position in the European arena. The traditional clichés of fiesta and siesta (whilst very appealing and in the case of fiesta very real!) have been supplanted by a high growth economy with a strong focus on innovation and internationalization. Hence, alongside the many world famous cultural and social activities available in cities such as Madrid and Barcelona, you will find a vibrant international business environment. Major Spanish companies such as Telefonica, Ferrovial and Santander have become global players, acquiring substantial positions outside their traditional markets in Spain and Latin America. In the case of companies like Inditex (the owners of the Zara brand), innovation has been at the heart of their success, redefining the industries they compete in. Spain is an exciting, creative business environment, a fascinating live case study of innovation, adaption and change.
This situation has significantly impacted the way we teach management at IE. One of the critical elements of managing change is the need to promote and manage innovation. We address this through our markedly entrepreneurial approach, which is a key component of all our MBA programs. Entrepreneurship is an engine for economic growth, generation of collective wealth, employment and social-being. IE was originally a start-up venture ‘founded by entrepreneurs for entrepreneurs’ and innovation lies at the core of our ideology and programs.
One of the key objectives of the MBA program is to help participants find and seize opportunities, utilising innovative solutions to address the complex problems they find around them. Providing participants with a technical knowledge of the business planning process is central to this aim. Participants learn about opportunity identification, market research, assessing capital requirements and investors, business plan writing and pitching. This is achieved by approaching entrepreneurship from a number of different perspectives; traditional new venture creation, corporate venturing within existing companies, family enterprises and developing ventures with a social or environmental impact. This enables participants to see entrepreneurship as not merely a tool for new venture creation but also a highly effective way to address many different business issues.
The pivotal objective of the program is to imbue an entrepreneurial mindset in participants, that can be applied to many of the problems and issues they will encounter in their post-MBA career.