B-schools must perk up

BS OPINION

The potential for achieving global standards clearly lies with the top 25 B-schools that have been rated A-plus in the survey.

There's good material, too, in the schools rated A "" another 44 of them "" who can at least aspire to be national champs, providing Indian industry with excellent managerial products at reasonable cost.

However, between potential and delivery, there is a large gap. The high salaries paid out to MBAs emerging out of the top schools may suggest that all's well with the B-school system, but that's not the case.

Even the best B-schools have trouble recruiting industry-experienced faculty. The reason is pay. No institute can pay teachers what industry can.

But if quality is to be raised, there is no option but to offer much better emoluments to permanent faculty.

This is why HRD minister, Murli Manohar Joshi's idea of reducing fees at the IIMs flies against common sense. Low fees and low salaries will lead to lower levels of faculty competence and curriculum autonomy "" a vicious cycle if ever there was one.

Currently, some B-schools are bridging the gap in emoluments by allowing faculty members a share of consulting fees and by using more visiting faculty. But no great school can be run by being over-dependent on visiting faculty.

The second reason for concern is that Indian B-schools are insufficiently global in their student profile and research. Even the best schools have a predominantly Indian student profile, thanks to the huge internal demand for a business education.

If schools do not diversify their student profile, they are headed for long-term trouble. It is worth remembering that Indian businessmen also thought that way once upon a time: why export when domestic demand absorbs all that you produce?

The answer is clear: without catering to a global market, you cannot learn what the global consumer wants. Your quality levels will thus remain relatively low. This applies as much to B-schools as manufacturing industry.

As for research, there is clearly a huge disconnect between industry and B-schools. Most B-schools teach theory; but most businesses don't share their experiences and problems with academics.

In fact, it is difficult to associate even a handful of B-schools with cutting-edge business research in India. There are no C.K.Prahalads, Krishna Palepus and Nitin Nohrias in India "" yet.

This can come only with increased industry interface and focused research. A third failing in Indian B-schools is the almost complete lack of focus on the softer areas of management "" people handling skills and leadership.

Most B-schools focus on theoretical knowledge and building IQ-related strengths. Little is done to expand EQ "" emotional intelligence.

EQ is what helps managers motivate people and deliver better results in teams. Soft skills need to become a key focus area for Indian B-schools.