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NEW TRENDS IN MANAGEMENT EDUCATION IN EASTERN EUROPE

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Title: NEW TRENDS IN MANAGEMENT EDUCATION IN EASTERN EUROPE


1
NEW TRENDS IN MANAGEMENT EDUCATION IN EASTERN
EUROPE
  • Marc LUYCKX GHISI
  • Dean Cotrugli Business Academy
  • Zagreb, Croatia.

2
NEW TRENDS ?
  • Eastern Europe and the Balkans have a hidden
    competitive advantage. They are more open to the
    future than Western Europeans
  • Probably because of their recent and older
    story.
  • They have been obliged in 50 years to adopt
    communism and abandon it.

3
NEW TRENDS ? II
  • They are now eager to find a place in the new
    capitalist industrial world.
  • And to join the European Union if it is
    possible
  • But it seems that they also have less objections
    to shift further to the post industrial, post
    capitalist knowledge economy.

4
NEW TRENDS ? III
  • Comparing my students in Rouen (France) and in
    Zagreb, I find a difference of creativity and
    motivations.
  • East europeans are smart and more open to the
    change.
  • They are more ready to innovate and to take risks.

5
NEW TRENDS ?
  • But they have also much less security of
    employment and carreers.
  • They are more obliged than others to be proactive
    and creative.
  • Their actual insititutions are not always
    transparent. OK. But everyone knows that they
    will change and possibly improve, if they enter
    the EU

6
EXAMPLES
  • COTRUGLI BUSINESS ACADEMY, in ZAGREB, Croatia, is
    one example of innovation in management
    education. (Drazen KAPUSTA)
  •  SEAVUS  is a very innovative company in
    Macedonia.(Igor LESTAR)
  • Both will be presented here in this congress.

7
CBAs HYPOTHESIS (I)
  • Our hypothesis is that we are worldwide going
    full speed towards the knowledge economy.
  • EU Lisbon Strategy (2000-2010)
  • EU economy is already 45 in this knowledge
    economy, which according to Peter DRUCKER is post
    capitalist.
  • The classical Management education prepares
    only for todays industrial, capitalist non
    sustainable, society

8
CBAs HYPOTHESIS (II)
  • CBA has has decided to have a  two
    legs approach  to management education.
  • One leg is education for the industrial
    capitalist economy
  • The second leg is education for the
    post-industrial, and post capitalist, knowledge
    economy.

9
CBAs HYPOTHESIS (III)
  • Now students discover that this second leg
    approach asks from them new skills, and a new
    vision of the market, of concurrentce,
    competition,
  • They must understand  intangible assets  which
    are forcing them to take into account new factors
    like the environment and social inclusion.

10
CBAs HYPOTHESIS (IV)
  • This changes the CEOs image and the companys
    image.
  • We must prepare our students for this new world,
    with a new Management education strategy.
  • Thus our Management education is really twofold.

  • We are preparing our students for 2 societies and
    2 economies.

11
CBAs HYPOTHESIS (V)
  • Most of our students understand and approve our
    vision and our education proposal. Not all.
  • Some are really enthusastic and understand
    fully.
  • We consider our duty to help Croatia to
     leapfrog to the post-industrial society, and
    be excellent in the 21 st century.

12
CBAs FUTURE
  • Drazen KAPUSTA, CEO of CBA will explain how CBA
    is planning the future

13
SEAVUS
  • I have recommended SEAVUS, because it appears to
    be one of the most innovative company in the
    region.
  • Igor LESTAR CEO of SEAVUS will explain
  • How the company works
  • What his company expects from Management
    education in the XXIst century

14
EASTERN EUROPE
  • I believe in the potential of Eastern Europe, and
    specially the Balkans.
  • Because they have had hard times and are most of
    the time open to the future, at least among our
    business students.
  • They have a potential to be able to leapfrog to
    the next post industrial society, and pull the
    rest of Europe

15
THE NEW DEBATE ON MANAGEMENT EDUCATION
16
DRUCKER ON POST CAPITALISM
  • We are far enough advanced into the new
    post-capitalist society to review and revise the
    social, economic, and political history of the
    Age of Capitalism and of the nation-state. That
    the new society will be both a non-socialist and
    a post-capitalist society is practically certain.
    And it is certain also that its primary resource
    will be knowledge. (page 4).

17
DRUCKER OLD MANAGEMENT
  • When I first began to study management, during
    and immediately after World War II, a manager was
    defined as someone who is responsible for the
    work of subordinates. A manager in other words
    was a boss, and management was a rank of power.
    This is probably still the definition good many
    people have in mind when they speak of managers
    and management.

18
DRUCKER NEW MANAGEMENT
  • The right definition of a manager is one who is
    responsible for the application and performance
    of knowledge. This change means that we now see
    knowledge as the essential resource. Land,
    labour, and capital are important chiefly as
    restraints. Without them, even knowledge cannot
    produce. Without them even management cannot
    perform. But where there is effective management,
    that is application of knowledge to knowledge,
    one can always obtain the other resources.

19
QUESTION ON EDUCATION
  • Are our management education schools able to
    prepare managers to be responsible for the
    application and performance of knowledge ?
  • Naturally we have to prepare them also for the
    industrial society
  • But are we sufficiently aware that we have to
    really prepare our students for a different
    future?

20
Transition to Transmodern
Death ?
21
WHY KNOWLEDGE SOCIETY?
  • UNESCO (2005) has also made an important
    declaration on the  Knowledge society .
  • Distinguishing  information society  as still
    industrial with more ICT, and  knowledge
    society  as a new post industrial and
    sustainable/inclusive society.

22
WHY KNOWLEDGE SOCIETY ?
  • The EU Head of State have decided in March 2000
    that the EU has to be the most competitive
    economy in the knowledge society before 2010.
  • And this must happen in a completely sustainable
    and socially inclusive way.
  • This is what is called  The Lisbon Strategy
    2000-2010).

23
DEFINITIONS
  • Data what is on the web, non-organised
  • Information is already sorted by  google .
    Overabundance.
  • Knowledge is created by human brains interacting
    in networks
  • Wisdom takes future into account!
  • Knowledge, Wisdom are rare. Not enough.

24
EXAMPLE ASCO
  • ASCO won the bid of the EU Commission for running
    its site. Huge contract.
  • ASCO has 48 hours to translate into 15 languages
    all productions of the EU Commission.
  • Computers and capital are 20
  • 80 of the companys value are its people

25
A NEW WORLD...
  • New tool of production human brain
  • New CEO Enabling creativity and sharing,
  • New human-centered management
  • New value creation process adding K to K.
  • New Trade from Free Trade to Free Sharing
  • New measurements qualitative intangibles
  • New strategy beyond war win-win not win-loose
  • New definition of Progress qualitative
  • Beyond patenting towards Open Source
  • Beyond pyramids towards networks
  • Capitalizing on cultural capital gender
    capital

26
1. NEW TOOL OF PRODUCTION
  • The tool of production is not anymore machine
    technol.
  • It is human brain networks for sharing
    knowledge in order to create new Knowledge.
  • This new tool of production is more important
    than capital and technol.
  • Hence Post capitalist society (Peter Drucker).

27
ASCO
  • The new tool of production are the translators
  • Better treat them well

28
2. NEW VALUE CREATION PROCES
  • KNOWLEDGE SOC.
  • Create new Knowl.
  • From data info to K
  • Tool is Human
  • Humans are capital
  • Management is Human-centered
  • Machine is second
  • INDUSTRIAL SOC.
  • Add value to object
  • From steel to car !
  • Tool is Machine
  • Humans are cost
  • Management is machine-centered
  • Machine is central

29
ASCO
  • The value creation process here is to apply the
    translators knowledge on knowledge Commission
    texts.
  • Translators are the main tool of production.
  • Computers are necessary but not first.

30
ASCO
  • How to control the quality of translations ?
  • Through  command and control ? This is
    impossible. What to do?
  • Networking Cocktails with all the  Slovenians 
    of Brussels. They all want a good text and accept
    to collaborate in improving the text.
  • This full WIN-WIN strategy
  • And it worked perfectly.

31
3. NEW MANAGEMENT
  • Human capital is central because it is caring for
    the tool of production Please come back!
  • Thus Management shifts 180 towards human
    centeredness more creativity-centred, gender
    culture centred.

32
4 NEW CEO FUNCTION
  • Old CEO command, control, capture
  • New CEO
  • enable the creativity of his human capital
    tool of Production
  • Enable and creator of networks around his team.
    Cannot control networks!
  • Care for the intangible assets brand

33
ASCO
  • A new CEO came in. He had bought the prosperous
    company.
  • And he imposed the old industrial style of
    management.
  • In 48 hours, half of the personnel was gone
  • And the Commission suspended the contract.

34
ASCO
  • In a few days ASCOs Share hd lost 50 of its
    value.
  • An error of management can be terrible and fatal

35
5. BEYOND TRADE (I)
  • If I exchange an object against money, I loose
    the object. This is trade I win and I loose.
    Win-Loose logic
  • If I exchange knowledge, I do not loose my
    knowledge. I win and you win. I am not trading
    anymore. I share. This is a win-win logic of
    sharing.

36
5. BEYOND TRADE (II)
  • INDUSTRIAL SOC.
  • Free trade of objects
  • Industrial structure
  • Pyramids
  • Unemployment
  • Pollution
  • Quantitative growth
  • KNOWLEDGE SOC.
  • Free sharing of knowl.
  • Post-industrial
  • Network value creation
  • Self-creation of my job
  • Dematerialization of production.
  • Qualitaitve growth

37
6. 1. A NEW SYSTEM OF MEASUREMENTS
  • Intangible assets is a new concept invented
    by Karl Erik SVEIBY (Sweden).
  • They are becoming more and more important in the
    knowledge society
  • Because the knowledge society is about knowledge
    which is immaterial, intangible and qualitative.

38
6. 2. INTANGIBLE ASSETS
  • Intangibles assets
  • Know how,
  • Reputation,
  • Trust in the company,
  • Structure of the company,
  • Strategy (balanced scorecards)
  • Relations with personnel,
  • Relations with clients,

39
6.3. INTANGIBLE ASSETS (II)
  • Relation with civil society
  • Relation to environment
  • Relation to our collective Future and
    sustainability
  • But also quality of the Networks

40
6.4.MEASURING INTANGIBLE ASSETS ?
  • Stock exchange measurements are still looking at
    financial tangible assets (quantitative) but
    they increasingly look at intangible assets
    (qualitative).
  • Today a company is measured more and more by its
    intangible assets.
  • Example Mens Wear USA. World Business
    Academy, Spirit in Business.
  • See also Neskey www.neskey.com

41
6. 5. Intangible indicators grow
42
6.6. GROWING IMPORTANCE OF INTANGIBLE ASSETS (II)
43
ASCO INTANGIBLE ASSETS
  • In two days ASCO shares lost 50, because their
    reputation was down
  • In the Commission contractor
  • Among the workers producers
  • In the consumers community readers
  • Intangible assets here are 90 !

44
7. NEW BUSINESS STRATEGY/ WIN-WIN
  • Old business strategy is warlike. Battlefield
    images are frequent. Patriarchal values dominate
    win-loose
  • New business strategy much less violent,
    competition through collaboration is the new
    motto.
  • Knowledge behaves like love!

45
ASCO WIN-WIN
  • Impossible for ASCO to have a command and control
    strategy
  • It is obliged to have a win-win approach.

46
8. NEW DEFINTION OF PROGRESS
  • The industrial modern definition of progress is
    quantitative. More is better.
  • This definition is UNSUSTAINABLE
  • The knowledge society implies a qualitative
    definition of progress.
  • Good new! this allows a reorientation of our
    societies towards sustainability

47
9. BEYOND PATENTING
  • The whole of the industrial production system is
    based on secrecy and patenting. I have this
    technology and you have not. So I win!
  • Information and knowledge always leak
  • In the knowledge economy we will NOT be able to
    maintain secrecy patenting.
  • See generic medecines, I-Pod music, etc,.

48
10. BEYOND PYRAMIDS TOWARDS NETWORKS
  • Pyramids are the normal structure of
    industrial organizations
  • But knowledge is created only in networks. This
    is the shape that could prevail in the XXIst
    century.
  • Pyramids are all in crisis everywhere. In
    Busienss, Governments, Military, Churches,
    NGOs, etc.

49
ASCO NETWORK !
  • Impossible to survive as pyramid!
  • The new CEO tried ad killed the company in a few
    days !

50
11. CAPITALIZING ON CULTURAL AND GENDER CAPITAL
  • Unexpectedly, culture and gender diversity
    becomes important as they feed creativity
  • The knowledge management is thus potentially
    socially inclusive and sustainable
  • The Lisbon strategy was thus excellent and
    forward looking.

51
CONCLUSION NEW VALUES
  • Underlying values needed in the industrial
    capitalist society are freedom, initiative,
    ceativity
  • NEW Values are needed
  • Freedom (of sharing)
  • Solidarity, Caring, Respect
  • Transparency
  • Concern for the Common Good

52
Consequences for the Business (II)
  • IN US, only 10 of the Knowledge society
    business has survived the dot.com crash.
    Example CISCO
  • Because they have changed
  • The tools (ICT)
  • The structure of their enterprise
  • The underlying vision of their scope and values
    (Verna ALLEE)

53
Consequences for the business
  • 90 of the EU Business leaders stick to the old
    industrial strategies
  • More capital advanced technology
  • 10 of the EU Business leaders change their
    strategy
  • Capital Technology.human creativ
  • Entreprise in Network win-win strat.
  • Personnel is not a cost but key asset

54
Business society A new relation
  • Industrial objects are tangibles ethically
    neutral.
  • Knowledge is intangible always linked to a
    meaning and thus to ethics.
  • Producing knowledge thus involves a meaning and a
    business reputation an intangible asset.

55
Four definitions of entrepreneurship
  • Agrarian Conquer More land
  • Industrial Conquer Markets. CEO controls and
    knows.
  • Knowledge entrepreneur cares for human capital,
    fosters creativity, Sustainable. Facilitator.
  • Spiritual entrepreneur conscious of his
    mission towards the Common Good of Humanity.

56
CONCLUSION
57
CHALLENGES FOR MANAGEMENT EDUCATION
  • Most Business schools seem slow to adapt, but
    Business is quick !
  • It seems easier to innovate far from the power
    centers Croatia, Macedonia, Bulgaria, Serbia.
  • Croatian students response is 60 positive. They
    are the voice of CBA outside.

58
A NEW CONVERSATION?
  • India is a leader in Knowledge economy.
  • But is India enough aware of the post industrial
    dimension?
  • India has also been the creator of the greatest
    religions in the world

59
A NEW CONVERSATION ?
  • Could we not initiate with India, a new
    conversation
  • on Management education in the knowledge
    society?
  • on spirituality and responsibility in this new
    knowledge business
  • On wisdom in Business preparing for a really
    sustainable society?

60
Some good Books
  • Peter DRUCKER Post capitalist society, Harper
    Business, New York, 1993.
  • Verna ALLEE The future of knowledge Elsevier
    Science, 2003, USA.
  • Jeremy RIFKIN The European Dream when Europes
    vision of the future is silently eclipsing the
    American dream Penguin 2004.
  • Ray ANDERSON Mid Course correction 1998.
    www.chelseagreen.com (Interface)
  • World Business Academy www.worldbusiness.org

61
SOME GOOD BOOKS
  • Neskey on intangible measurements
    www.neskey.com
  • David ROONEY (Australia) Handbook on the
    Knowledge economy 2005.
  • Marc LUYCKX GHISI  The Knowledge society
    Building a sustainable future.  editions
    romaines, Luxembourg. 2008. www.leseditionsromaine
    s.com

62
SOME GOOD BOOKS III
  • Marc LUYCKX GHISI "A winwin strategy for the
    European Union in the knowledge society"
    published in the "European Visions for the
    knowledge age a quest for a New Horizon in the
    information society". Paul KIDD(Ed.) Cheshire
    Henbury, UK, 2007.
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