What’s Missing: Self Awareness in Business Education

The purpose of this post is to explore the shortcomings in current business education and provide insight into what is missing. Before I begin, lets look at these two tables. Table 1 includes the educational background of 10 CEOs involved in the current crisis. Table 2 covers the educational backgrounds of CEOs considered to be most responsible.

Table 1: Educational Background of CEOs Involved in Financial Crisis

For more information on people cited in this table read this Blog on the financial crisis

Table 2: Educational Background of CEOs in Most Responsible Companies

8 of the above CEOs were selected from this article.

2 out of the 10 socially responsible CEOs were from tops schools, 5 were dropouts and 2 were Hampshire college (liberal arts). 10 out of the 10 CEOs responsible for corporate scandals and crisis were from top schools. The three main areas of education pursued by the corrupt CEOs were business, law, and economics.

If big schools could not change irresponsible leaders and they did not contribute to shaping the responsible leaders, what is this saying about the best education institutions in our country?

Being a business school professor and marketing consultant, I will address what I think are some problem areas in our business education. This comes with the disclaimer that what I am stating is based on my personal experiences and opinions.

Narrow Purpose: To make money

First day of school, business professor asks marketing class of 100 students, “why are you here?” Common response is, “to make money.” Nothing wrong with that, except when I ask, “does it matter how you will make money,” I am met with silence and question marks on the young faces.

Not many professors and classes ask this question in business schools. Career goals maybe discussed, which question students’ choices between majors such as market research or branding. But the fundamental question is not asked that speaks to their inner purpose:

What inspires you?

What are the challenges that made you who you are?

How can you best use your passions and skills to create a meaningful life for yourselves and others that you may impact?

For other questions read the post on inner purpose.

In the absence of these questions to explore the inner strengths and potential of each student, students graduate from college with the purpose of making money and that they may do, but at what cost? It may come at the cost of pursuing jobs they don’t really enjoy, their quality of life, and health. And if the primary goal is to make money, their relationships with their colleagues, employees, suppliers, customers, and the environment become secondary.

Goal is to maximize shareholder value

“The best way to maximize shareholder value is to not make maximizing shareholder value the primary purpose of the business.” John Mackie

Traditionally, what has been taught in business schools is that the main purpose of business is to maximize shareholder value. Making profitability the main purpose runs the danger of promoting a myopic vision that may improve profitability in the short run but will backfire in the long run, as is demonstrated by the financial crisis.

A parallel movement emerging in business and the academic world is beginning to emphasize the bigger missions that businesses serve and when executed well they maximize shareholder value. This approach described as conscious capitalism (John Mackie, Bentley College), authentic leadership (Bill George, Harvard), and mindful business (iAM Business Consulting, Patagonia) assumes that people are most motivated and perform best when they are serving a higher purpose to the best of their abilities. Moving the focus from maximizing shareholder value to maximizing all stakeholders’ value expands the focus of businesses, which lays the foundation for more innovation.

It is easier to be the top retailer by exploiting your employees and squeezing your suppliers (e.g. Walmart) than it is to change your business model to develop a new product involving innovative processes that serve your customers and the environment better (e.g. Interface Carpets).

No one said it was easy to be mindful and conscious in business, but it does pave the way for more innovation and long term well being of all stakeholders. The CCI Institute quotes research cited in the book Firms of Endearment, “such companies outperformed the S&P 500 by a factor of 9-to-1 over a ten year period, while paying their employees better, providing generous benefits, delighting their customers, having profitable suppliers, investing in community programs and minimizing their environmental impact.”

It is not only responsible but also makes business sense for companies to engage in conscious leadership and mission oriented business. Isn’t it time all colleges created courses to reflect this trend in conscious capitalism? (For a list of courses currently available, check The teaching resources at CCI)

The disconnect from the practical world

It is not until I became a consultant that I realized how disconnected I was from the real world struggles of businesses. Most text books provide a good foundational understanding of the subject being taught but are not reflective of the current dynamics in the marketplace. For example, social media is widely accepted as a vital aspect of any marketing strategy by big and small businesses alike, but only few business schools have incorporated it into their curricula. An interesting video made by an anthropology professor and his students called the Vision Of Students Today, highlights the irrelevance of the content and mode of communication within college classrooms.

Most professors complement text book knowledge with popular business stories in an effort to stay current, but the real practicalities and challenges remain unknown to students and professors alike. What exasperates the problem is that most courses are confined to classroom teaching, which doesn’t allow the learning to include real world challenges and opportunities.

The disconnect of coursework from the real business world does not adequately prepare students to deal with the challenges they face when they graduate. It is important that curriculum development involve more rigor and conformity across professors to include more real world learning.

Politics in academics

As soon as one joins college as an assistant professor, the clock starts ticking, for tenure. The main goal for professors in research schools then becomes getting the required number of publications for tenure. Impacting students and the world at large become secondary goals.

Power games endemic to the business world also exist in academia. Where there are people, there will be politics, I guess. But as academics we do carry the extra responsibility because of the impact we have on so many students who will be future managers and leaders. Getting caught in our narrow goals for power and publications can result in decisions that serve our individual interests or those of the few in the elite group at the expense of the school and its students at large.

It is important for leadership roles at the department and college levels be undertaken by dynamic and conscious human beings, who hold the interests of their communities and students before personal gains.

So what is missing? Self-Awareness

Taking an integral approach I am sure we will find many things are missing looking at  social, cultural, psychological, and behavioral levels. However, a common thread that runs through each of the shortcomings in business education discussed above is self awareness. Self awareness refers to knowledge of the self including ones strengths, weaknesses, feelings, passions, and motivations for actions. Self awareness can help students to connect with their purpose and passions so they have more clarity about how they will make money and enjoy the process. Knowledge of their inner strengths and weaknesses will allow them to maximize their strengths and minimize the risks posed by their weaknesses.

In a recent interview, Bill George said, “Any business school committed to developing leaders needs to offer courses and other experiential opportunities that enable students to develop greater awareness of themselves, their motivations, and their strengths and shortcomings” (Bill George). Being in touch with one’s authentic self allows us to operate from a place of strength and integrity and makes us less vulnerable to temptations posed by power, wealth, and recognition.

Unfortunately, self awareness cannot be taught nor learned very easily. However, what can be taught are tools to enhance self awareness. But before teaching students about self awareness, it is essential for professors to engage in self reflection and mindfulness practices to find their own core purpose, strengths, and weaknesses so they can act from a place of integrity. With enhanced self awareness professors can truly be role models for students so they can then go on to be mindful and conscious managers and leaders, more capable and more resilient to deal with the challenges of the business world.

The 75 members of Stanford Graduate School of Business’s Advisory Council almost unanimously recommended self awareness as the most important capability for leaders to develop. (Bill George et al).

“Dee Leopold, the Managing Director of Admissions at Harvard Business School, listed self-awareness as one of the key attributes her committee is looking for in candidates.  Harvard is not alone here - other top business schools agree.”  (Stacy Blackman))

 Tuck’s Center for Leadership has developed a whole curriculum devoted to self-study. Audia, associate professor at the Tuck school and center director, writes, “We recognize that leaders aren’t jacks-of-all-trades who share an ideal set of traits; everyone excels at some tasks more than at others. Effective leadership lies in using this realization to build on your strengths and reduce any potential harm from your deficiencies. That’s what we call self-awareness.” (Stacy Blackman)

Many leading business people, like John Mackie (CEO of Whole Foods), Yvon Chouinard (founder of Patagonia), Bill George (Former CEO of Medtronics), and Michael Rennie (McKinsey Managing Partner) are beginning to openly discuss the merits of practices like meditation and mindfulness. In addition, there is a lot of scientific research to provide evidence to support these practices.   

Self Awareness and Purpose

“To be yourself in a world that is constantly trying to make you something else is the greatest accomplishment.” Ralph Waldo Emerson

 Going back to my question on the first day of class – why are you here? What is your purpose in pursuing a business education or any kind of education for that matter? All of us have something very unique to offer not only because of the natural gifts we were born with, but also the unique life experiences that have taught us many valuable lessons. Yet, very often our passions and highest potential get hidden under many layers of conditioning, fears, and expectations.

I believe education at every level should support students in discovering their strengths and weaknesses so they can live their highest potential and find ways to minimize the effects of their weaknesses. (In another post I list some questions to be used for reflecting on inner purpose).

Self Awareness Tools

 Unfortunately, self awareness cannot be taught nor learned very easily. However, what can be taught are tools to enhance self awareness. There are many tools available to enhance self awareness such as meditation, breath work, and deep contemplation. These tools need to be woven into regular classes that business students take and students should have an option to learn the tools that naturally appeal to them. In case you are curious to look up some self awareness tools, I have listed some suggestions for enhancing self-awareness in another post.

There should be avenues for students to put into practice their enhanced self awareness into creating and executing projects that speak to their passions and allow them to integrate their inner awareness with other skills they are learning at school.

Self Awareness and Ethics

Businesses need to be aware of their social responsibilities and long term implications of all their decisions. As professors we have the responsibility of training students who will be leaders and employees in these businesses. The financial meltdown compels us to re-evaluate how we teach ethics and social responsibility to our students. Instead of having ethics and responsibility as separate courses that are optional, perhaps they need to be woven into the curriculum and students’ self awareness. For example, Ed Freeman at Darden asks his students, “How well do you know yourself and will you waver and give in to pressure or temptation. If you have the answer to that question, (in most cases yes), the smartest thing to do is to not walk that path at all. The morality debate around “should or should not” is trivial; the real questions that need to be asked are all centered on self awareness.” (Jawwad Farid 2010)

Self Awareness and Mindful Leadership

Mindfulness is the state of being present to what is happening within one self and in the environment. According to Bill George, “Leaders who are mindful tend to be more effective in understanding and relating to others, and motivating them toward shared goals. Hence, they become more effective in leadership roles.” In a recent interview, Bill George said, “Any business school committed to developing leaders needs to offer courses and other experiential opportunities that enable students to develop greater awareness of themselves, their motivations, and their strengths and shortcomings” (Bill George). Being in touch with one’s authentic self allows us to operate from a place of strength and integrity and less vulnerable to temptations posed by power, wealth, and recognition.

What do you see as missing in the current business education?

What role does self awareness play in your personal and professional life?

References

Blackman, Stacy (2010), “MBA application essays: self-awareness is key.”

_______________ (2009), “Why Self-Awareness Should Be Taught in B-school.”

Farid, Jawwad (2010), “Teaching Ethics to Business School Students.”

Silverthorne, Sean (2009), “Mindful Leadership: When East Meets West.”