Some Job-hunting Advice for “Occupy Davos”

According to the Graduate Management Admission Council, writes Chad Brooks in Business News Daily, nearly three-quarters of businesses plan to hire MBAs in 2012, up from 58 percent in 2011.  This is surely a welcome turn of trend for the legions of would-be salary(wo)men out there longing for a shot at a Global 1000 cubicle.  It has been an employer’s market for too, too long.  If you believe GMAC (which certainly wants you to because they make their clams by selling the GMAT exam for $250 each, the volume of which further declined 3% in 2011 from its 2009 peak), then times are ahead when employers will again actually be competing with one another for attractive MBA hires.  In this scenario, the level of competition will be even higher due to the dip in MBA enrollments over the past three years (as much as 15% in the USA), creating a temporary shortage of this sought-after commodity, er, human being.

Keen job-seekers in Davos, Switzerland aren’t taking any chances, however.  Not content to relax by the XBox waiting for those recruitment letters to arrive, they are camping out in igloos, probably armed with stacks of CVs, to be first in the queue when global executives emerge from optimistic World Economic Forum sessions on the lookout for new talent.

Oh, wait!  Sorry.  Those are Occupy WEF protesters who have traded their tarps and tents for the white stuff.  Mic check, anyone?

But just in case they have a change of heart, out there in the cold and wet while the corporate elite recreate indoors, here’s a great tool for tackling  a still-recalcitrant job market with some high-powered corpspeak.  This will totally impress:  the Random Financial Advice Generator.  Just click the button and walk away with the kind of beta people (in Davos, anyway) pine for.

Here’s one of my favorites:  ”Arbitrage-free capital structures: in unsecured sectors, plan to securitize them.”

Or how about “The smart investor this season will be sure not to amortize liquid REMICs.”

Brilliant.

OccupyMBA!

An Entire Armada of Crooked Captains

Manager’s Samizdat

Al Lewis has produced a delightfully wicked roll-call of crooked corporate captains, following from the hapless case of Capitano Francesco Schettino, the Italian who actually managed to “roll” the $450 million cruise shop Costa Concordia.  (I thought that only happened to SUVs on icy Vermont roads, not ocean liners!  Bravissimo, Capitano!)

In case its life at WSJ.COM is too brief – I mean, I thought Rupert Murdoch was buddies with these guys – the article is reproduced below in its entirety, properly attributed, for posterity.  I hope none of them had MBAs.  What?  Most of them?  Hilarious!

O Captain! My Captain!

AL’S EMPORIUM, JANUARY 22, 2012, By AL LEWIS

Columnist's name

The world’s been too hard on Capt. Francesco Schettino, calling him “Captain Coward” and “Chicken of the Sea” when he has performed as well as many others at the helm.

Yes, he ran aground a $450 million cruise liner, lost lives, abandoned ship and turned Carnival Cruise Lines into a circus. It was an accident.

Plenty of other captains have boldly steered into perilous waters, failed to see rocks and crashed. They’ve also lost footing on shifting surfaces, only to land in lifeboats, leaving others to drown. This has been a regular headline for decades.

Capt. Jeffrey Skilling abandoned ship to spend more time with his family, months before Enron hit bottom. He said it was an accident, too.

Capt. Bernie Ebbers said he didn’t have any idea how phony accounting entries got into his ship’s log. As captain of WorldCom, he couldn’t be bothered with minor details like accounting.

Capt. Dennis Kozlowski liked Italian islands as much as Capt. Schettino. He threw a $2 million birthday party for his wife on Sardinia, using money he looted from his shareholders at Tyco International.

Capt. Richard Fuld steered Lehman Brothers into a swampy lagoon of subprime debt. He, too, hit an uncharted rock. Or, at least, it wasn’t on his chart.

Capt. Jimmy Cayne was reportedly smoking weed and playing cards as Bear Stearns sank.

Capt. John Thain took care of his crew at Merrill Lynch, pushing through $3.62 billion in executive bonuses as his firm washed up on the Bank of America.

Capt. Angelo Mozilo wouldn’t go down with his ship. He unloaded more than $200 million in stock options before Countrywide Financial capsized, and he left the wreckage to shareholders.

Capt. Bernie Madoff sure had a funny way of financing his yachts. He even named one of them “Bull.” People somehow thought this was a reference to bull…markets.

Capt. Allen Stanford, the world’s second-greatest alleged Ponzi schemer behind Mr. Madoff, is slated for trial this week. He took over the island nation of Antigua with his offshore banking empire, Stanford Financial. Some even call him the “Pirate of the Caribbean.”

Capt. Tony Hayward went to a yacht race as BP’s rig was spewing oil into the Gulf of Mexico. He expressed the same thought other disgraced captains must have: “I want my life back.”

Capt. Daniel Mudd of Fannie Mae and Capt. Richard Syron of Freddie Mac overloaded their cargo hulls with junk mortgage securities. They didn’t need to hit a rock. They sank themselves.

Capt. Jon Corzine sank MF Global so deep they can’t seem to find all of his ship. Not even the Bermuda Triangle can make $1.2 billion in customer funds mysteriously vanish.

Capt. Ben Bernanke has launched QE1 and QE2 and he may soon christen QE3 in the Federal Reserve’s fleet. He wants these bond-buying programs to bail out every foundering captain on the sea.

Unlike many other captains, Capt. Schettino wasn’t risking it all in a self-dealing bid to get stinking rich. He probably wasn’t drunk like the captain of the Exxon Valdez. He was just trying to show people a good time by skimming by a beautiful island.

He then did what every other captain does in an unimaginable crisis. He learned he wasn’t as fearless as he’d pretended to be. He panicked. He slipped. He somehow landed in a lifeboat. He probably wishes he hadn’t. But it’s not like he jumped with a golden parachute.

Al Lewis is a columnist for Dow Jones Newswires in Denver. He blogs at tellittoal.com; his email address is al.lewis@dowjones.com

Isn’t an MBA Education?

Bill Schubart notes:

The paranoid language trumped up by those who dislike government assumes that most Americans are much less intelligent than, in fact, we are. We learn by education, example and experience. An MBA and accumulated or inherited wealth are not the only determinants of wisdom.

While I am generally inclined to agree with Bill Schubart on most matters, isn’t an MBA a form of education?  Hello….? [... crickets ...]  Where did everybody go?

OccupyMBA!

 

“Occupy the Business Schools?”

Occupy the business schools?  Really?  Because this is what David Ikenberry and Donna Socknell declared last week in Bloomberg/Business Week.  Does this mean doing away with the hierarchies – the academic ranks, the departments, tenure – and replacing them with the horizontal organization of Occupy?  Does this mean opening up decisions to all stakeholders’ voices, with transparency, joy, and love?  Occupy is a militant protest movement to its most ardent participants, not a marketing slogan, corporate change program, or lifestyle brand.  Occupy means radical reexamination of every institution with a hand in the overconcentration of wealth and power, the plutocratization of politics, the marginalization of communities and cultures, and the plunder of the Earth.

Invoking “Occupy” is a radical step for any B-school dean.  What further steps await the intrepid dean-gone-occupier?  Slashing tuition from above $60,000 to more reasonable levels?  Forswearing the facilitation of private student loans?  Surely, including ethics lessons in every course – as if every moment weren’t teachable – falls far short of a moral education.  Who cares about deontological this and consequentialist that and how-would-you-resolve-this-dilemma if the MBA students are not surrounded by a caring, collaborative, supportive and authentic community throughout their studies, where ethical leadership is modeled continually, and where domination and hypocrisy are leavened and reversed?  It takes a deeply moral community to build a courageously ethical leader.

What about the numbing reductionism of the modern MBA paradigm?  Occupy seeks to make whole a broken society and political economy.  In conventional MBA programs, the departments are proudly disparate siloes, decoupling academics from one another’s worlds.   They read different journals, go to different conferences, write mutually unintelligible (yet similarly irrelevant) papers, and teach different theories and world-views.  What good is an overlay of ethics modules if the “functional” disciplines are deeply fractured and reductionism rules?

In 1960, about 5,000 new MBA students enrolled in American business schools.  In 2009 – the all-time peak – this number reached around 125,000.  The half-century spanned by these two years saw our middle class decline, our manufacturing flee, our family farms decimated, our small towns gutted, our people ravaged by excess and pointlessness, and the financial sector swell into a dominant component of our economy.  It also saw the explosive spread of a global capitalism that grows more extractive and heedless by the day, particularly in places where environmental protection and human rights are weak.  Is there any connection between the mindset of the modern MBA grad and these destructive decades?  One has to wonder, because they were running the organizations that made all this happen.  Ikenberry and Socknell call them “good people doing terrible things.”  How were they good?  Good is what good does [that’s what business ethics profs call “consequentialism,” by the way].  Society lets the likes of Enron, Bernie Madoff, Jack Abramoff, and MF Global do what they do because of a corrupted, hard-hearted, individualistic culture of economic power cutting across business, government, education, and other major institutions.  Yeah, maybe occupying the B-schools would help.

Finally, are cross-curricular CSR modules even remotely adequate?  Modern management has taught us to think of people as consumers, to ignore communities, to buy off “stakeholders,” to abandon economic losers, to discount the future, to place exaggerated value on personal wealth, and to treat much of what makes our planet and our humanity wonderful as disposable commodities.  CSR doesn’t really challenge these.  CSR is often about band-aids and public communication that, at best, mean a little less unsustainability.  This is the most that even the “good” companies usually want in their new hires – not real occupiers!

John Ehrenfeld sees sustainability as “the possibility that humans and other life will flourish on Earth forever.”  Can business schools steeped in the converse be trusted to truly “occupy” themselves in this spirit?

“Sustainable leadership” and the Occupy Movement: Some Thoughts

The temptation to abandon one’s faith in “sustainable leadership” is always niggling, and can become overwhelming.  It’s a notion that only broaches when the collapse and disappearance of leadership – the role and impact of a leader – becomes a real possibility in an organization, project, or movement.  Otherwise, why worry about sustaining?  We usually don’t in routine organizational settings, with their established cultures and standard operating procedure and predictable career paths.  It’s when things are closer to the edge that this becomes of real concern: organizations in conflict, growth, mergers, bankruptcies, leadership transitions, social change movements, political campaigns, and so on.

“We’re not a leaderless movement,” enthused one of the participants in an Occupy Coordination conference call in November, “we’re a leaderful movement!”  This attractive idea seems consistent with what some have observed in the OWS communities: collaboration, inclusiveness, emotional maturity, a warm spirit of welcome and camaraderie.  Is this evidence of “sustainable leadership” in OWS?

The opposite has also been in evidence.  At a working group meeting at 60 Wall Street in late October, before the occupation was busted up, and when the lobby swarmed with such meetings all day and every evening, it was clear that sustainable leadership skills were in short supply.

A guy had a proposal for the group that involved adopting a vision he had articulated, and then following his process to develop a strategy and action plan.  This person, who appeared to have been a regular participant in the WG’s meetings, had brought some hard copy for the group, and it had apparently been available online for a day or two.  Despite the best of intentions, the group’s process lurched from one dysfunction to another.  There was confusion about whether the group was obligated to examine and decide the proposal or not.  There was confusion about the meeting’s purpose.  There were several false starts in terms of who would facilitate.  For over half an hour, the group debated its own process, with impatience rising and tempers starting to flare.  (It was evening, and a number of participants would be leaving early to attend the 7 PM General Assembly at Zuccotti Park.)

With a tone that gradually shifted from assertive to irritated, the guy pushed his agenda.   He was offended by the fact that a previous meeting had allegedly reached consensus about an earlier version of his proposal, agreeing to put it on today’s agenda, and that all prior momentum seemed to have now stalled.  I had not been at the last meeting, but his frustration appeared genuine.  He had clearly put some work into the proposal.

Finally, as the meeting wandered off into a muddle about how the stack was supposed to work, the guy stood up and threatened to walk out.  This got everyone’s attention.  Within minutes, he would be gone, but what he did fascinated me, and has remained on my mind as an example of the mismatch between MBA-style managerialism and the OWS movement’s leadership needs.

Holding up his proposal, he assured us that he had an MBA and had done lots of this sort of vision/strategy work for corporate clients before.   He also was a CPA.  If the working group did not adopt his vision and proposal, he was “outta here,” and knew there were many other clients who would value his contributions instead.  This was it.  Take it or leave it.

The meeting, which consisted of about a dozen people, was in no position to respond.  It was a Luhmann-ian does-not-compute situation.  He was offering a challenge in an individualistic, I-am-empowered-to-negotiate fashion to an organizational entity that only understood the logic of collaboration, commitment, and inclusion.  The meeting could not respond as a single-minded superorganism, nor could it respond through a person empowered to represent it (i.e., a spokesperson or chair), and neither the facilitator nor the stack-taker could speak for the meeting.

Through the guy and the meeting, two profoundly different paradigms of society clashed for a few minutes more – individualistic, expertise-based managerialism vs. collaborative community – and then he disappeared into the cool autumn night, pissed off and outta there.  The facilitator admitted he felt that the guy’s walk-out was a “failure,” and there was a brief sense of regret.  The meeting then muddled on to other matters, more harmonious now, and actually got a few things done before most folks ran off to the incipient GA.

What was accomplished, and what price was paid?  Did OWS lose an expert because of its organizational inefficiency and chaos, its obsession with process over effectiveness?  Does this pattern portend the ultimate failure of OWS as a movement because its collective hostility to managerialism, expertise, and discipline continually prevents effective action, burns people out, and chases away the competence it needs?  As someone who saw a nascent US green movement in the 1980s remain nascent partly because of its organizational gridlock (e.g., the endless, inconclusive pursuit of consensus), I take this fear seriously.

Listen, for example, to a recent post by Sandy Krolick about his experience at a similar meeting two months later:

[M]y visit to the Big Apple indicates that the OWS movement is now officially on life-support.  At my brother’s urging, we wandered into an organizational meeting of New York’s OWS crowd in the Atrium Building at 60 Wall Street, which, post-9/11, now houses more than 4,500 employees of Deutsche Bank, New York. There were approximately twelve generally disheveled and incoherent OWS comrades in attendance, and screaming over one another.  The big issue of the evening appeared to be the question of who was going to be eligible to receive free subway metro-passes, an issue that never seemed to be resolved.  Yet, several folks were pushing a side agenda aimed at ejecting one of their “members” for failure to cooperate.  Can you imagine that… non-cooperation, in America? We can’t even get protest right; we must organize into general assemblies (a subordinating move itself), because we do not naturally understand cooperation. I could sense that this was not Tahrir Square in Egypt.

OK.  I did not witness anything that trivial.  Perhaps the caravan has indeed moved on, leaving few organizers or thinkers remaining in the cold, echoing spaces of 60 Wall Street.  But, even in the heyday of OWS circa October 2011, many visitors to the atrium would have been forgiven for making similar observations.

I don’t believe that the greater “purpose” of OWS is to replace “management.”  The guy should have stifled his Mr. MBA/CPA ego, realized that there would be other places and other times to contribute his expertise productively, and stayed at the meeting.  Given his supposed expertise, he should have calmly participated, looking for real opportunities to apply meaningful leverage, and not reacting to false ones.  What was really at stake: the progress of the OWS movement or his professional bravado/ego?  He was offered a supreme opportunity to exercise sustainable leadership – leadership in expertise that he could sustain, as well as the working group – and it seems he passed it up.  How often is this repeated?  Is America so individualistic that almost all of its crop of potential sustainable leaders is destined to wither on the vine whenever they confront the logic of collaboration and mutual solidarity?  (Or morph into warp-speed individualism-managerialism when offered non-collaborative opportunities to perform à la ENRON or Goldman-Sachs?)  Is truly collaborative, sustainable leadership emerging nonetheless on the activist fringes of society, in the occupations and campuses and informal organizing where social change is relentlessly pursued?