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The paper considers the need So far so good, then. But is this going to be
for an evolution in managerial Introduction: the millennium enough in the twenty-first century? Are there
skills in the twenty-first manager new challenges to which new responses are
century, and considers the Forty years ago the eminent philosopher, the required? Will tomorrow’s managers be able
required change in the nature late Sir Isaiah Berlin, distinguished two types to coast through their professional career on
of business schools and of knowledge. Each was identified with a the basis of the learning undertaken in the
management development. particular animal, the hedgehog and fox first half of their career? Will there be such
Considering the history of respectively. “The fox”, wrote Berlin, “can do creatures as corporate managers in a hun-
management development in dred years’ time? What is the future actually
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can all be undertaken by systems hardwired enough to find your way round Chinatown”.
into physical structures. The people will It is probably the skills of the fox that will
move intermittently in and out of the lower help us pick our way through the Chinatowns
levels of the organisation but without ever of the future, in Russia as well as in the UK.
attaining an entrée even to the first rung of Yet, are universities in general, and business
management. Typically those junior manage- schools in particular, in shape for teaching
ment positions were to do with managing these skills?
junior people. But the organisation will not
employ people like that at all. Long gone is
the fantasy of the “factory in the dark” in Strategy for a knowledge business
which assembly of manufactured goods was British education, when delivered to high
to be undertaken by robots who, by definition, quality standards and when it is supported by
would not need the light on. However, the “no a strong interest in the society and culture in
career hierarchy” retail organisation is very which its programmes are delivered, can
much alive (and kicking!). Aspirants who claim to be among the most demanded prod-
enter at the bottom cannot work their way up, ucts in the global market. On the whole the
because many of the old rungs of the ladder world likes British products. Hence, British
have simply disappeared. academics operate from a position of relative
But will managers be specialists at all then? strength and British universities are on bal-
Almost certainly yes. However, they will not ance still good places in which to work and to
necessarily see general management as their ply the academic trade.
specialism. Textile people will probably A number of strategic issues face univer-
remain textile people, dairy people will sity business schools in the global and
remain dairy people, foundry managers like- national context, and, contrary to received
wise. This may be more a matter of experi- wisdom, the argument is that university
ence, temperament, and where one happens business schools have more choices than is
to be on a particular network than it will be to generally imagined. They have many more
do with anything more deep-seated or rooted ways of applying themselves to the problems
in the nature of hierarchical organisations. of making themselves available for their
The fact is that people know too little about traditional markets and more ways of getting
the future, but enough to suspect that the themselves into shape to cope with an uncer-
techniques of planning and predicting will tain future.
still be relevant, if over shorter time hori- Universities are in the education business.
zons. The skills of managing people will They cannot normally change their location
remain the basis of good general manage- with great ease. They are tied into a particu-
ment and the capacity to keep on adapting lar pattern of staffing which will normally
and learning will be fundamental to the owe more to the way the map of knowledge
opportunities managers will have to control was organised when they were founded than
their own destinies. to how it looks now or how it may look in a
Will all of this mean that it will no longer be generation’s time. These factors limit their
possible to talk in terms of “managing one’s choices in the short term.
career” while “keeping one step ahead” and University higher education is something
the like? Not entirely, but it does seem likely which on the whole the British do rather well.
[ 44 ]
David Weir and Clive Smallman The post-Japan generation in the UK has manufacturing in the 1970s was based on the
Managers in the year 2000 grown up with the expectation that the concept of the learning organisation.
and after: a strategy for British are somehow coming from behind, Unfortunately, these simple lessons proved
development hard for British industrialists to accept.
that the world tends to be ahead of the UK and
Management Decision that other people in other cultures and soci- They wished to believe that the Japanese
36/1 [1998] 43–51 had some superior magic, had access to
eties somehow do it better. UK business
schools developed fast after the Franks and some arcane elements of culture which were
Normanbrook reports of the early 1960s that denied their righteous British counterparts,
business schools on the American pattern that they had somehow or other “fiddled”
were required to help bring British industry the knowledge system. The Japanese virtue
and management up to competitive interna- of study, training, hard work, and collective
tional standards. support for individual behaviours is some-
One of the authors visited Japan as a mem- thing that has taken two generations or
ber of the Finniston Committee in the late more to start to be accepted in the UK. But
1970s. This committee was set up to consider what was not found at any rate was that the
the contribution of engineering to manufac- Japanese educational system was somehow
turing industry in the UK in the light of “better and more relevant” in relation to the
national economic needs. From the outset requirements of manufacturing industry
than was the case in the UK. But British
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These are relative advantages for the educa- edge which implies that heavily formalised
tional providers of the developed world. UK strategic planning, of a kind that was fashion-
university courses are backed up by research able in the 1960s, may be a snare and a delu-
and their delivery systems can be supported sion. It becomes an end in itself and the
by state of the art technology, and this is strategists become increasingly divorced
where the UK’s market advantage lies. Uni- from the operations which is where the real
versity quality systems are supported by life of the organisation is.
governmental regulation, and the world on It is time to get “back to basics”. The core
the whole understands the framework of activity of a university is teaching, learning
British government administration and and the creation and transmission of knowl-
trusts it. edge. This is not, in principle, a process that
The best basis for attacking an interna- is amenable to very tight controls, least of all
tional market is to command a secure home on substance and quality. An hour may be as
market. The best way to offer an interna- well filled with verbiage as with seminal
tional audience a guaranteed product is to insights. Lab time can be wasted. Computer
have secure systems in the home manufactur- access can be wasted on games and surfing
ing base. The same is true in higher educa- rather than on upgrading and broadening a
tion. International markets are hard, com- knowledge base. What happens in the pri-
plex, competitive and differ one from another. vacy of the lecture theatre is not easily mea-
They should not be attempted by those who surable, and the link between inputs and
do not have a secure base in their own culture outputs is very hard to trace. Even attempts
and systems. International markets cannot to gain apparently good numbers for manage-
substitute for a weak home market. ment purposes are questionable. Why is
There is a general paradox of organisational student feedback immediately after a lecture
management as well: while senior manage- a good or even approximate measure of the
ment of an organisation spend most of their quality of the learning experience as evi-
time and attention on making day-to-day oper- denced by future behaviours perhaps long
ations as efficient as possible (doing things years hence? The fact that something is mea-
right), it is in the realm of effectiveness (doing surable in the here and now does not mean
the right things) that organisations will ulti- that it is important in the long haul.
mately be judged. What are the right things Probably the most widely used framework
for business schools? If these can be properly for strategic analysis in the business organi-
identified then the task of doing things right, sation of today is that codified by Porter
which is what management seems most con- (1985). There are a few recurring basic
cerned with, is surely secondary. choices. Organisations can choose a cost
This does not mean, of course, that organi- efficiency or cost leadership strategy, a differ-
sations need not try to be efficient because entiation strategy, a quality strategy or an
when the market formula is quite well known innovation strategy.
or available to a number of producers it will The low cost producer considers such
be the most cost efficient producer that cre- options as substituting capital for labour, for
ates the internal surplus to permit it to re- capital is cheaper in the long run, and will
invest in its own products. Rather, most try to move up the experience curve to obtain
strategists in management agree that when economies of scale. Where technologies do
[ 46 ]
David Weir and Clive Smallman not change and producers are roughly business schools have backed up their dis-
Managers in the year 2000 equally positioned in terms of advantage in tinctiveness as a graduate operation by inten-
and after: a strategy for the market increasing volume can drive sifying the research basis of their activities.
development down average costs. The low cost producer Others, like Ashridge, have aimed to be at the
Management Decision will of course try and take cost out of the state-of-the-art of their major corporate
36/1 [1998] 43–51 business by increasingly severe restrictions clients and have bought the knowledge in;
on management discretion. They will try to they have majored in efficient delivery of
analyse contributions more precisely and executive programmes.
price aggressively to build volume. This type Organisations need to consider a grow or
of strategy is appropriate where products buy strategy. Growing brains is expensive
are essentially commodities and where there and time consuming. So some business
is high price elasticity in the markets. schools are net providers of trained doctor-
A differentiated strategy is appropriate ates to the market, like Bradford. Others buy-
when a firm can identify what is unique in the product of their competitors’ invest-
about its own product in terms of design or ment in PhDs. No one strategy is right, only
special features of quality or service. Where more or less appropriate for a particular
there is a wide range of buyer and potential organisation. Bradford has a strong doctoral
buyer expectations and latent demands in programme and has the capability to operate
the market the greater the opportunities for a “youth policy”.
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differentiation. The focus niche strategy is What are the choices for medium-size uni-
appropriate where a firm has the potential versities in the provinces of the UK? Cer-
to specialise in a particular product market. tainly there are distinctive perceptions in
The specialisation or focus may be the environment about what universities are
geographically related to customer groups good at. Sometimes these are misconceived
or related to the functionality of the prod- or are based on the actual experience of a
uct. A smaller company, with limited previous generation. The market is not nec-
resources, may find the focused niche strat- essarily always well informed, and arguably
egy appropriate. universities have not invested as much as
The stage which an organisation is at rela- they might have done in finding out how
tive to the market as a whole is also impor- they are in fact perceived by key groups of
tant. Strategies should differ depending on customers and potential clients. They should
whether a business is starting up in a stage of not perhaps be too obsessed with changes in
vertical integration, diversifying, or is trying application rates for their various courses
to turn around from a period of decline. but they should, as a matter of routine, be
It goes without saying that these are not spending time in the sixth forms of the
necessarily easy judgements to make. For a schools which send their products to them.
start most universities have not traditionally Certainly the Management Centre tries to
thought in this way. They have been universi- take as much heed as it can of business in
ties and, in the markets of knowledge, have general and not necessarily just of those
seen themselves as universal providers. Thus companies and organisations which are
a desire to be all things to all possible markets sending people on existing programmes.
has been the nature of their offering. So the Management Centre is active in
The Bradford Management Centre in the organisations like the Institute of Manage-
past few years has on the whole gone for a ment, the Yorkshire Publicity Association,
focused niche strategy. The strategy has been and, of course, the professional institutions
to think through in which markets the Centre of Accounting, Marketing and Credit
will have a relative advantage. This is enabled Management.
by the fact that the Management Centre has The local community must always be a
from the start been a full service business major element of the environment of a uni-
school. So the Bradford Management Centre versity. But universities do not always see
has had options that have not been available their local market as clearly as those in that
to other business schools and, moreover, it market see them. For example, the difference
has had the opportunity to gain experience in between a university such as Glasgow, in
more than one kind of product. Furthermore, which over 70 per cent of the students come
a strategy of geographic dispersion has been from within the west of Scotland home envi-
followed. ronment, and a north of England provincial
Not all similar business schools have university, where there are no natural links
remained full service or have chosen to to the community, is striking indeed. In Glas-
become so. Many, like the London and Man- gow it is not advisable to be out of step with
chester Business Schools, have identified City Hall, the Scottish Development Agency,
their niche in the graduate business school and the major employers in the region.
market. Here too there are differences. Some Hence, the part-time mode of higher
[ 47 ]
David Weir and Clive Smallman education is a normal and natural path for a opportunity and the chance to enter previ-
Managers in the year 2000 university to follow, the inevitable conse- ously inaccessible markets, the Bradford
and after: a strategy for quence of decline in the unit of support from development has been, at least in part, oppor-
development central government, and a desirable outcome. tunistic. However, it has been guided by a
Management Decision Universities which focus on the niche which series of strategic considerations and its
36/1 [1998] 43–51 activity has been restricted to a number of
geography has given them will, almost cer-
tainly, have a competitive advantage. Success strategic arenas.
in that niche will provide complementary The Bradford Management Centre is one of
opportunities in overseas markets which are the oldest established, major business
networked with them. schools in the UK. It was founded in the
Do all universities function equally effi- early 1960s, some five years before the Lon-
ciently on their own national stage? Perhaps don and Manchester Business Schools, and
not. The Bradford Management Centre aims before the Normanbrook report which
to be a strong local and regional provider of recommended the creation in the UK of grad-
high quality MBA programmes and to have uate business schools on the north Ameri-
identified international markets where a can pattern. Its first courses started in the
major provincial player can prosper. This late 1950s. Its initial impact was in the field
does not mean neglecting the national mar- of middle management short courses. But on
the foundation of the University of Bradford
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only one of the products which relates to that opment work, however, its brand identity is
regional position. The Management Centre less visible because of a strategy which is
would therefore have a choice of becoming a relationship – rather than brand attribute –
second division or intermittent premier divi- driven. This has led to the emergence of spe-
sion player, if its activities were restricted to cific and, in some cases, unique products
the UK market alone. such as Executive MBAs which are, unusu-
However, in the international market, and ally in the British executive development
particularly in relation to western Europe, market, single-company focused.
Bradford’s location does not represent a com- The Management Centre lays no claims to
parative competitive disadvantage. Indeed, as originality in its developmental strategy or its
far as Benelux countries and Northern presentation. Elements of the strategy are
Europe are concerned, access is equally as quite close to the ways in which the Japanese
good as from the London area. In terms of subcontracting system has been transmuted
more distant markets, Bradford’s research from an essentially pyramidal to an essen-
strength in Asia-Pacific economies and spe- tially network structure, but primarily Brad-
cial interest in management in Arab coun- ford’s strategic development has followed
tries also present non-location-specific rather conventional business lines with a
advantages. view to perceiving the strategic alliances as
Bradford has ignored apparently attractive the end product of a relationship rather than
opportunities in parts of the international the focus of a market entry strategy. Strategic
market where it had no knowledge base or alliances are being built firmly on the reality
prospects of finding a suitable institutional of continuing, effective and supportive busi-
partner to learn along with. This has so far ness and intellectual relationships with insti-
kept us out of the former Soviet Union, Latin tutions that, in the main, mirror some aspect
America and much of Africa. On the other of Bradford’s own behaviours. The Manage-
hand, it has also kept Bradford away from the ment Centre has not, however, sought to seek
fallacious strategy of attempting to move to a mirror images of its own institutional struc-
position of market leadership in markets tures or philosophy. Rather, it has taken each
which the Management Centre did not under- market and each issue on a case-by-case exam-
stand and in which exploitation would chiefly ple seeking to respond to perceived demands
depend on economies of scale. Business from other markets and to add what Bradford
schools are not especially good at exploiting faculty has learned to the benefit of our long
economies of scale nor in expanding their and broad experience of management educa-
scope quickly. tion to the capabilities which already exist in
organisations which have a reasonably secure
Bradford therefore tends to map the world
position in their own market and reasonable
in a way which makes sense to it. In most
potential for further innovation.
cases the Management Centre is not sure
when it enters a specific situation what the
ideal vision of its future activity in that mar-
ket will be. To admit ignorance in these cases
Conclusion
is neither ignominious, nor is it an admission The Bradford approach to management devel-
of a lack of strategy. It is an acceptance that opment has from the start concentrated on the
strategy often follows successful initiatives. link between knowledge and competence,
[ 50 ]
David Weir and Clive Smallman contributing to the practice of management. international business school is one of mar-
Managers in the year 2000 As the world of management has globalised so kets, strategic alliances and product develop-
and after: a strategy for has Bradford’s part of the knowledge business. ment, of proactive ventures into an increas-
development As the requirements of organisations like the ingly globalised world economy. The reality of
Management Decision BBC for the more specific application of gen- its success at carrying the Bradford message
36/1 [1998] 43–51 eral management knowledge to their business will be one of people, alumni, trained gradu-
have become more focused, our products have ates, flexible, adaptive and creative, carrying
become more customised. The Management the Bradford message of “making knowledge
Centre has instituted language teaching and work”, on the back of a fox culture. The Brad-
formalised its approach to placement supervi- ford Management Centre is preparing man-
sion. It has responded to the demands for more agement for the millennium.
on the job learning, through strengthening
mentoring alliances and introducing action Reference
learning based programmes. Porter, M.E. (1985), Competitive Advantage: Creat-
The history of the Bradford Management ing and Sustaining Superior Performance, The
Centre and its path to a position as a leading Free Press, New York, NY.
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Application questions
1 How do you see management skills evolv- is it just concerned with the major
ing as we move into the new millennium? players?
Are you ready to move from a hedgehog, 3 Is your business strategy appropriate for
to a fox culture? Or are you already dealing with the changes that will
there? inevitably occur in the twenty-first cen-
2 Is your local business school offering the tury? Is it sufficiently fluid to cope?
sort of support you need? Is it listening to 4 Is your organisation developing millen-
the local business community? Or nium management?
[ 51 ]