“If you know how to design a great motorcycle engine”, he said, ” I could teach you all you need to know about strategy in few days, its not the other way round” – quote from Henry Mintzbergs’ book
A popular conversation amidst my fellow MBAs, me including, circle around the topic of “lets start business”. Once we agree upon starting business, the managers, that being us, then decide upon which business to start. A suitable metaphor of this paradoxical situation could be a film producer signing his actors and then hunting for a story! and we are no different. Managers, that we are, are mass produced from big and small institutions alike. The mass manufacturers called MBA institutes, are inputted with people based on the brand value and the reputation they carry. Soon after 2 years (or 1 year), they are tagged with a brand and are let loose in the corporate world. Interestingly, the processing of the inputs, during the tenure of MBA, are more or less similar in most of the institutes- Case Studies, Business plans, presentations, case studies, business plans, presentations, case stuides and the cycle goes on.
So its nice to know that managers are made in an ethereal world, where complex situations are transformed in to 10 page case studies, which in turn comprises ‘one time’ brain picked solutions on paper, a hypothetical business plan ( basically excel prowess) and a consummating presentation. Lo Behold! there is a manager who is all set to rule the business world. It will be interesting to see if there is any other research carried out in this space. The last that I know of is here.
http://money.cnn.com/magazines/fortune/fortune_archive/2001/02/19/296894/index.htm
Hence the myth of business administration are as follows. Here are popular myths amidst my near & dear acquaintance-
a)” I analyze the company financials, I am fully qualified to start & run any kind of business in the sectors that I handle”
Well said, Bravo! If alone life was so easy. A good friend of mine is working in a financial firm and she had always insisted that looking at nos and “gaining insights” has armed her with skills to run a business. Trust me! real business is far messy compared to those glossy PDFs. There is definitely more to it. I am not against people in the financial industry. One can do pursue what he or she likes as per their will but starting a business just because you have analyzed the sector for dogs years is being clueless.
b) “I have been consulting all major companies as I am part of the worlds best strategy consulting organization. I can be on the board of advisor of your business”
Right! For one thing I need to give it to him because he just wanted to be in the board of advisor giving recommendations. Because recommendations and implementation are two different aspects. I came to understand this while I worked for a consulting company. Best example of consulting occured during a rock climbing exercise. When my friend was climbing a not-so-easy rock, I was shouting (rather consult) constantly from behind and was giving him directions to proceed with the climb. When my turn came, I realized what he went through. So stop bull shitting and be in business to run a business. Or unless, if you were to be one of the Lou Gerstners, then please discount this. Again, I am not against consultants but somehow I have a strong detest for the proclaimed business knowledge by the consutlants. In my experience, there are certain areas that are worth consulting. For instance, a specific task which is important but perhaps a one time or a non frequent activity can be done by consultants. A case in point can be a cost reduction or spend reduction exercise through the company. And in worst case scenarios, if a company is politically polarized the consultants can be brought into, to air CEOs’ views in non-inimical ways. Any expectations beyond this, for consulting, sure is an overkill.
c) Corporates paying monster salary for a fresher!
Preposterous and complete mindlessness. The kind of salary given to a fresher out of ivy leagues dont justify the competence level of the individual. Agreed, as a company, you have picked up a prodigy who will be the master transformer of your business, but why dont you pay him this cheque after he proved that he is a prodigy in your real world. Most of my real good friends and (now) excellent managers are from Ivy League institutes and I have tremendous respect for them as they have made it on their own to where they have, my boss including. But none of the transformations be it their positions or remuneration happened overnight. It reminds me of an intersting quote which I once read- ” It doesnt matter how fast you get there, all it matters is how long you stay there”
d) Confidence – Competence= Arrogance
I borrow this from Henry Mintzberg again. I second this completely as I was one of those arrogant bozos after my initial days of MBA. But, I must confess that I have come to realize that people engaged in business be it small or large, educated or uneducated carry a world of wisdom (with experience) that humbles the knowledge which I gained within the closed door and the glass windows during my MBA!
Nice one again Viveck.. Reg your diatribe against consultants I have one thing to add.. Going by your same example on rock climbing.. well if you had climbed the rock before your friend and climbed it for donkey’s years and then you give advice to your friend it is justified. But you learn how to climb rocks.. do a case study and then stand and shout.. then you deserve to be crushed under that same rock!!
And I have to say this.. consultants are not to blame.. the ones who hire them are.. ok some specialized areas you need consultants fine.. but then hiring consultants to tell you what your strategy should be!!! Would you really buy into a plan for your firm’s future which had been written by somebody who knows less about your product, market and industry than you do? If a consultant can tell you more about your own industry than you know, then you have to ask yourselves whether you should really be in that position..
I agree Nimalan. Thank you and appreciate your better illustration of the rock climbing example.