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    Is it time for our business schools to get closer to business?

    Acclaimed businessman, Rob Fyfe (formerly CEO of Air New Zealand), was reported this week as saying that business students don't understand leadership in the real world, and that universities should take a more authentic approach to leadership study. I agree.

    Over the last two years, I have been immersed in post-graduate study—initially a post-graduate certificate in business, and subsequently doctoral study. In so doing, I have observed some rather interesting behaviours and patterns that, quite frankly, trouble me.
    • A large percentage (perhaps the majority, even) of the academic researchers and tutors I have come in to contact with seem to have a very relaxed attitude towards time. The importance of time that pervades business is not apparent in academia. 
    • Many of the students I've met (both under-graduate and post-graduate) seem to lack any real appreciation of how business is conducted. Consequently, their ability to appreciate management concepts and theories, and think about them critically, is compromised.

    The consequences of these behaviours and patterns appear in the assignment submissions, theses and research reports produced by students and faculty. Much of the material is technically correct but either hard to understand or lacking in any applicability to real-world situations. It's almost as if the "so what?" question has never been posed, let alone wrestled with.

    In my opinion, all aspiring business students should be required to undertake at least five years practical experience in a relevant field before they are accepted into any post-graduate programme. Also, faculty should be required to do a significant period of field work on at least a sabbatical basis (every seven years). This type of requirement would ensure students and staff have at least a basic understanding of business in the real-world. Such a model may well be threatening to some faculty who sit comfortably in their learned environment. However, I suspect the quality and practical usefulness of the research produced, and calibre of graduates re-entering the workforce, would increase markedly.

    What do you think?
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    Readings: to keep the mind ticking over...

    This week I'm on holiday with my wife at Caloundra, on the Sunshine Coast just north of Brisbane, Australia. The weather is supposed to be pleasantly mild at this time of the year, with warm sea-breezes and partly cloudy skies foretelling the easing of the summer heat and the arrival of cooler temperatures. However, this week, the weather is not doing what is it supposed to. We've had passing showers every day until today, when steady rain has been the norm. Fortunately, the temperature is still hovering around 20 deg C. Anyway, wet weather provides a nice benefit: that of relaxing inside with a good book. This week, I've started reading two books. Both have gripped me and caused me to think quite deeply about a few things. I thought I'd share them with you, even though I have not finished reading them yet. 

    Thinking, Fast and Slow (published 2011) is Daniel Kahneman's latest book. It was an impulse-buy in mid-2012, while buying some research books at Amazon, one that has been sitting on my bookshelf since. Snippets from the flyleaf: Kahneman takes us on a groundbreaking tour of the mind and explains the two systems that drive the way we think. System 1 is fast, intuitive, and emotional; System 2 is slower, more deliberate, and more logical. Kahneman reveals where we can and cannot trust our intuitions and how ewe can tap into the benefits of slow thinking. He offers practical and enlightening insights into how choices are made in both our business and our personal lives—and how we can use different techniques to guard against the mental glitches that often get us into trouble.

    A Long Walk in the Himalaya: A trek from the Ganges to Kashmir (published 2007) was written by Garry Weare, an explorer and writer. Long Walk caught my eye while I was passing the time in a second-hand book store a few days ago. Although I've never been a tramper or trekker as such, I have long harboured dreams of undertaking long journeys on foot, be they pilgrimages like the trek across northern Spain to Santiago de Compostela, or indulgent hikes in Yosemite, Kakadu or Fiordland National Park. While I've visited some of these places, I'm yet to tackle any long journeys as such. Anyway, to Long Walk. This book provides an account of Weare's five-month trek from the source of the Ganges—through valleys and over mountain passes—to Srinagar in Kashmir. On one level, the book is a straightforward travelogue. One another, it provides a rich history of the region. On yet another, it stimulates spiritual and socio-political thought, of the type I've not experienced from reading a book like this before. 

    I'm partway through both books, and not normally wont to make recommendations. But in this case, I'll make an exception. If you are at a loose end, and are looking for something that will stimulate your mind, you could do far worse than read either of these books.
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    Twelve months on: living the dream

    Today is an auspicious day (well for me anyway). Musings was created twelve months ago today. At that time, I wanted (needed?) an outlet through which new ideas, thoughts and reflections could be expressed as I began to grapple with the demands of a PhD. 

    When I set out, the goal was entirely personal: Musings was a vehicle to share my thoughts and ideas about governance, strategy and societal wellbeing. I had no idea whether Musings would make it beyond a few months (or a few entries for that matter!), or whether anyone would read the entries. I wasn't really bothered either. To my surprise, my motivation to share ideas remains intact, somewhere between 50 and 200 visitors view the site each day (that number is slowly growing over time), and quite a few people have either posted comments or contacted me directly.

    Looking ahead, I plan to continue writing, because the process helps me refine my (doctoral) thoughts. The focus will probably narrow slightly (to strategy, decision-making and governance), as these topics start to dominate my thinking time (I've discovered doctoral research does that to you). One twist though: I'm going to move from writing for my sake, to trying to provide "value" to readers. To do this, I'd appreciate some feedback. Are there some topics or themes that you'd like to read about in the coming months? If so, please post a comment! In the meantime, postings will continue at the pace of 2-3 postings each fortnight.
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    Proud to be a Kiwi

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    Hannah Stilborn (Piopio, left) and Megan Crow (Wellington, right) reading "The Ridge"

    New Zealand is a small country of some 4.4 million, nestled in the south-western Pacific. On the world stage, we cast a reasonably small shadow most of the time. However, from time-to-time, our contributions belie our scale—like when women gained suffrage (first in the world), Rutherford split the atom, Hillary scaled Everest, and Jackson made the Lord of the Rings trilogy.

    Today, a group of New Zealanders joined a group of Flemish people at Messines Ridge Cemetery, to rebury the remains of a soldier that fell in World War 1, and remember New Zealand's contribution to defending the Western Front. We don't know who the soldier was, but do know that he was fighting for freedom. Commander of the Defence Force, Lt. Gen Rhys Jones, Ambassador Paula Wilson and many other New Zealand and Flemish dignitaries were present. Also, two young New Zealand AFS exchange students currently in Belgium, including our daughter Megan, laid a wreath and read a poem. The ceremony was reported in the Dominion Post and the NZ Herald.

    The weather was cold, but the moment moving. It's at times like these, when we remember the contributions of our forebears, that I'm proud to be a Kiwi.
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    Can the domino effect be avoided?

    Every time a major company fails, smaller suppliers and associated companies are at risk of the domino effect—of becoming a statistic themselves. It's through not fault of their own, save choosing to do business in good faith with the failed company. This was highlighted in fairly stark terms in the last week, when companies either sub-contracted to, or associated with, New Zealand's third largest construction company, Mainzeal, started suffering.

    The domino effect has major implications on economic performance and the wellbeing of communities. When major companies succeed and grow strongly, many smaller and associated companies also gain considerable benefit. Sadly, the domino effect also applies when major companies struggle or, worse still, fail.

    While suppliers are generally very happy to benefit from upswings, downsides are something to be avoided. But can the downside of the domino effect be avoided? Thankfully, suppliers do have options. Here's two for starters:
    • Diversify their customer base, so that they are not reliant any one customer for a major portion of their business. 
    • Negotiate more favourable commercial terms, which may well include fortnightly invoicing and payment cycles (although this can be very difficult to achieve).

    What other "defence" mechanisms can put in place to avoid the domino effect?
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    ICMLG Conference: Post-conference summary

    I've just arrived home after a demanding but highly enjoyable trip to attend the ICMLG Conference in Bangkok. On the long flight back to New Zealand I found myself reflecting on the conference overall. Here's a selection of what I wrote down in my notebook:
    • While diverse in topic, research methodology and scope, the general calibre of papers and presentations was impressive. ACI did a great job pulling together and running the conference.
    • Input-output research designs and quantitive data sets continue to dominate the research landscape, despite qualitative data and empirical data being more well suited to understanding and explaining social dynamic phenomena (like governance).
    • The case study approach appears to be gaining ground as a credible methodology for governance and leadership research.
    • Those researchers who are using qualitative methods are attempting to move from purely descriptive (exploratory) studies towards explanatory studies. (One of my objectives in attending ICMLG was to gain a better understanding of contemporary research methodologies.)
    • Relatively few researchers are investigating the link between governance and company performance.
    • I met some wonderful people! The conference was a melting pot of cultures. People from many different nations, religions and cultures were in attendance—a true "global village".
    Overall, I learnt a lot and the investment was well worthwhile. ICMLG 2014 will be at Babson College in Boston, Mass. On the strength of this year's conference, expect to see me in Boston in 2014!