Robert Reich: Harvard Business School is ruining America

[Crewleader]

September 16, 2014

The former secretary of labor explains how the famed university is complicit in the country's widening inequality

No institution is more responsible for educating the CEOs of American corporations than Harvard Business School – inculcating in them a set of ideas and principles that have resulted in a pay gap between CEOs and ordinary workers that’s gone from 20-to-1 fifty years ago to almost 300-to-1 today.

A survey, released on September 6, of 1,947 Harvard Business School alumni showed them far more hopeful about the future competitiveness of American firms than about the future of American workers.

As the authors of the survey conclude, such a divergence is unsustainable. Without a large and growing middle class, Americans won’t have the purchasing power to keep U.S. corporations profitable, and global demand won’t fill the gap. Moreover, the widening gap eventually will lead to political and social instability. As the authors put it, “any leader with a long view understands that business has a profound stake in the prosperity of the average American.”

Unfortunately, the authors neglected to include a discussion about how Harvard Business School should change what it teaches future CEOs with regard to this “profound stake.” HBS has made some changes over the years in response to earlier crises, but has not gone nearly far enough with courses that critically examine the goals of the modern corporation and the role that top executives play in achieving them.

http://www.salon.com/2014/09/16/robert_reich_harvard_business_school_is_ruining_america_partner/

[rock]

1. How should HBS change what it teaches CEO's?

They should drop the fiction of the MBA as a viable approach to management.

[cojoel]

2. I mostly agree

While an MBA may provide a qualified manager with a better set of tools, what needs to go is someone with nothing more than this certification is somehow qualified to run a business that neither he nor she understands anything about.

And when you promote from within, you don't need to get into a CEO bidding war.

[rock]

3. I find that while the whole concept of MBA may work

That there are many, much too many myths and wrong-headed ideas. The quality of which is at the level of "motivational management". I.e. Pure B.S. or if you prefer "cheer leading". Here's a couple of gems:
- Your company needs to grow 10-20% a year. Tell it to the buggy-makers!
- Cut back on training and save the cost in your profit statement (this year).
The MBA program was developed by con men, not professional managers.