Business Education Under the Microscope

Amid growing charges of irrelevancy, business schools launch a study of their impact on business

The business-school world has been besieged by criticism in the past few months, with prominent professors and writers taking bold swipes at management education. Authors such as management expert Gary Hamel and Harvard Business School Professor Rakesh Khurana have published books this fall expressing skepticism about the direction in which business schools are headed and the purported value of an MBA degree. The December/January issue of the Academy of Management Journal includes a special section in which 10 scholars question the value of business-school research.

B-school deans may soon be able to counter that criticism, following the launch of an ambitious study that seeks to examine the overall impact of business schools on society. A new Impact of Business Schools task force convened by the the Association to Advance Collegiate Schools of Business (AACSB)—the main organization of business schools—will mull over this question next year, conducting research that will look at management education through a variety of lenses, from examining the link between business schools and economic growth in the U.S. and other countries, to how management ideas stemming from business-school research have affected business practices. Most of the research will be new, though it will build upon the work of past AACSB studies, organizers said.

The committee is being chaired by Robert Sullivan of the University of California at San Diego's Rady School of Management, and includes a number of prominent business-school deans including Robert Dolan of the University of Michigan's Stephen M. Ross School of Business, Linda Livingstone of Pepperdine University's Graziado School of Business & Management, and AACSB Chair Judy Olian, who is also the dean of UCLA's Anderson School of Management. Representatives from Google (GOOG) and the Educational Testing Service will also participate. The committee, which was formed this summer, expects to have the report ready by January, 2009.

BusinessWeek.com reporter Alison Damast recently spoke with Olian about the committee and the potential impact of its findings on the business-school community.

There has been a rising tide of criticism against business schools recently, some of it from within the B-school world. For example, Professor Rakesh Khurana implied in his book From Higher Aims to Hired Hands (BusinessWeek.com, 11/5/07) that management education needs to reinvent itself. Did this have any effect on the AACSB's decision to create the Impact of Business Schools committee?

I think that is probably somewhere in the background, but I certainly don't view that as in any way the primary driver or particularly relevant to what we are thinking about here. What we are looking at is a variety of ways of commenting on what the impact of business schools is. The fact is, it hasn't been documented and as a field we haven't really asked those questions and we need to. I don't think a study like this has ever been done before.

How has the business-school community been responding to this criticism?

When there is criticism of business schools, the takeaway I have is we need to be constantly in touch with the marketplace. That's our mission. We think the management leadership research that comes out must be relevant to the issues in the marketplace, whether that's today, tomorrow, or 10 years from now. It can't be insulated or isolated.