Anders Liljenberg: “Each of our stars shines with its own light”

Is there any proven recipe of unconditionally leadership and success? The Rector of the Stockholm School of Economics Anders Liljenberg is sure that an up-to-day and high-quality knowledge can help your star to shine especially bright and eclipse competitors. In his interview to E-xecutive Mr. Liljenberg told about last trends of European and Russian education, main features of employment process of MBA graduates and their prospects.

Modern business is growing more than dynamic, while seriously challenging entrepreneurs and testing their strength. What do you need to do to meet the requirements and to rise above competitors?

In the opinion of the Rector of the Stockholm School of Economics Anders Liljenberg the key to the unconditional leadership and business success is the continual professional growth and personal development due to getting the new, actual and high-quality knowledge. We should agree with Mr. Liljenberg, because the interest to competitive business education is growing not only at the West, but also in Russia. At the same time a majority of our compatriots, who would like to get the precious diploma are deep in though – in what country it is better to get it.

Anders Liljenberg spoke about the latest trends of the European and Russian business education, new methods of knowledge obtaining, peculiarities of employment of graduates and their prospects in conditions of contemporary market in an exclusive interview to E-xecutive.

E-xecutive: More and more Russian businessmen are thinking about getting the MBA diploma. What should be taken into consideration, while choosing the business school? Where is it better to study – in Russia or in Europe?

Anders Liljenberg: America is the motherland of MBA education. First it was only the full time education. It means that students must sacrifice minimum a year to get an MBA diploma. Usually it was interesting for those who did not have business education yet. For example, these can be engineers. Than business education began to develop in Europe and than in Russia. It is interesting that full time programs still exist and are actively proposed even now, while part time MBA programs have appeared not long ago.

Here I can cite as an example my own career. I graduated from the full time MBA program, that took the whole year and that was a long time.

The Russian market is growing fast, it is dynamic and is constantly offering new opportunities. Therefore each businessman gets a challenge and must show himself in the best possible way. He should also have the opportunity to get new knowledge without serious time costs. I think that in future the number of full time MBA programs will decrease significantly. Executive MBA programs that have more interesting characteristics than the full-time MBA will probably be developed. Executive MBA programs are based on the real business experience, that is why they open much wider range of knowledge for students.

All these factors certainly have an influence on the costs. It is important, who is taking the decision to study or not to study at the MBA program – the employee or the company. For example, if we compare Russia and Sweden, we can see that in Sweden the majority of program participants are being sponsored by their employers. In Russia it is vice versa.

Is it very important for the head of the company to decide why he should send his employees to study at the MBA program?

In my opinion, a lot of companies in Russia have a lack of qualified employees today. What can be done to keep them? Directors must pay an adequate salary, provide a career growth and give benefits – a car and a mobile phone. But it must be something else. You may pay a very high salary, but if you show the employee that the company is ready to invest into him and to pay for his education, to give him an opportunity to improve his qualification – than it will be the most effective way to keep him.

Of course, it is possible, that the employee leaves the company after getting his MBA degree. However, the perception that the company takes care of him, can help to keep him.

E-xecutive: Far from all companies in Russia understand the importance of MBA …

A.L.: I absolutely agree with you. The personal development is important for all of us. But for the company an employee’s education is not the main interest. Unfortunately, a lot of companies thinks that the education is the own business of their staff. Therefore, the employer must understand that the company will gain from the employee’s development, even in the two-year period, while he is studying.

E-xecutive: Another problem is that not every director will agree to wait for two years that an employee spends at the school desk.

A.L.: That problem arises only when we speak about the full-time MBA programs. Just because of this, as I have already said, the number of full-time MBA programs becomes smaller. But there are other MBA-programs when students should be present in the class for several days per month. For example, in the Stockholm School of Economics there is a five-day educational model – from Wednesday till Sunday. Classes usually take place once a month during four terms. It is very convenient, is it not?

However, this model does not suit everyone. Someone does not want to sacrifice the time that they can spend with their families. These programs are very intensive and demand every day attendance. I disapprove students that ask for the permission to be absent. But if the student comes to me and tells that he is not able to come on Sunday because his son is playing football, of course, I will let him go. The family and the private life are very important.

E-xecutive: What about distance education? Probably it can be a way out for the busiest employees?

A.L.: The Internet stimulates the interest for such form of education. During several years a lot of schools were dealing with distance education. Due to technology progress such form of education becomes more and more acceptable. But in my opinion, this point refers also to the general business education. I do not believe that this can work with executive MBA programs because an interactive communication when students discuss the problem with the class has a great importance. When students communicate with each other through the Internet, everything happens in a different way.

So I do not exclude such form of education in general, but nothing could substitute direct communication. At least, this is true with regard to our MBA programs in the Stockholm School of Economics. A standard university program supposes only one type of communication and may be there the distance lectures studying is possible. But this format does not suit interactive lessons.

E-xecutive: During MBA education process a student gets not only knowledge, but also valuable experience and contacts thanks to communication with other specialists. What is more important?

A.L.: I think that both are important. In some fields students come to a class only for the knowledge and are interested only in it. Therefore it is very important to decide for yourself, what is more important and what will be more useful for you. It is also very important to get the experience, to establish new contacts and to create a network. But you should bear in mind that you must have your own place in the network and can answer the question: what am I doing in my life and how?

The education process at our programs is very emotional. We are trying to reach not only brains but also hearts.

E-xecutive: How can you comment on that fact that the age of business school graduates is getting younger and younger every year?

A.L.: That fact is not relevant for our school, because a job experience is one of our entry requirements. But I can understand this tendency. We communicate with our alumni. We wish to say: it is too early for you, you are so young. If you do not have experience of work you cannot make your contribution to communication with other students. If you do not make such contribution you cannot evaluate what we are doing because very often we make people choose between two models. For instance, you are told: tell us, please, how your company works in a certain area. What will you do if you do not have experience and if you have not worked?

But I understand why this happens. Business schools are interested in enrollment of as many students as possible. This is applicable probably to the entire educational system. However, there is a hazard at this point: if this goes on the schools will make the value of the diploma doubtful.

Some educational institutions enroll people older than 60. They have rich experience. When, for example, ten of the 27 people in a group are at this age this is good. In any case, I think that in general it is very important for a school to pursue a relevant policy and not to enroll too many such people. It is possible to enroll a certain quantity of them because they have experience that is valuable anyway.

E-xecutive: Let us imagine the following situation. You get an MBA diploma, com to your new boss but he does not even look at your diploma and asks: what is your real experience of work and what can you do? Many bosses do not pay much attention to education certificates.

A.L.: I think that a combination is necessary. If we speak about executive МВА you, of course, should have at least a five-year work record. With this experience you come to study and receive the next degree in your field. If someone is unable to evaluate this combination of experience of work and diploma, I do not know what I can say. Very often people have to change jobs. They have ambitions and new ideas but the boss does not understand them. These people are perfect executives. They need a goal on achievement of which they can work. In this case the problem is not in the employee but in the management.

For example, I can speak about myself honestly. I am not a scientist but I am an ambitious person. I started working in the pharmaceutical industry and afterwards I began thinking about my future. I felt that it was necessary to develop the intellectual capabilities. I thought about an MBA program and this seemed interesting to me. Unfortunately, my employers did not understand me and I left the job.

E-xecutive: How is it possible to teach students to cooperate with potential rivals? Sometimes this skill is necessary.

A.L.: This is absolutely true. However, there are different programs. First time, working in a group you compete against another group. Afterwards there may be something like competition inside of the group but along with this you need to work in close cooperation. Besides, we change composition of the groups every time. Thus, students understand that very often it is possible to do the work only on account of interaction.

We also encourage a wish of students to cooperate with each other. They should learn to work with the most diverse people. This is a mandatory condition for a good manager. You not only compete against the others but also try to subordinate individual interests to the common ones.

People who come to us often consider themselves to be stars. I tell them: you are just one of the forty starts. Along with this, each of them radiates its own light.

E-xecutive: How does motivation of employees change?

A.L.: A possibility of obtaining of an advantage on the labor market is very important for Russian businessmen first of all. Competition against other top managers is growing increasingly bitter. Ten years ago, it was sufficient to have basic education. Much more is needed now. A special diploma and an MBA degree are necessary for you to be able to compete against the others for a really interesting job. When you develop you change your work record and state higher requirements to a job. The matter is not about money but also about self-development.

I believe that this competing motivation will only grow in the future. Besides, the idea of self-fulfillment will become increasingly interesting. It will be more important for people to achieve progress in what they re doing. You study exactly for this.

E-xecutive: Getting an MBA diploma you automatically claim a higher salary and a more prestigious post. Are such expectations always justified?

A.L.: When you get a degree you can say that you have received more opportunities. However, of course, this is not enough. Everything depends on you. Many people do not have even basic academic education but make a successful career. Thus, there is no guarantee and everything depends on a certain personality, if it is going to develop and fulfill itself. In any case, having an MBA degree you receive a perfect start for motion. Having a degree you increase your status on the professional market.

E-xecutive: How profitable is getting of MBA degree? Many people are concerned about the question: if the money that they have invested in education will return to them?

A.L.: Yes, many people are concerned about this. However, the question is not only about money but also about other factors. With regard to Russia, when people get an MBA degree there they, as a rule, double their salary. However, this is not the limit. Your whole life may change.

E-xecutive: The labor market is changing permanently. How is it necessary to act to comply with these changes?

A.L.: It is very important for a school to change its programs in accordance with requirements of time. It is necessary to track changes. For instance, a big need for professional financiers is registered now and it is necessary to take this fact into account.

Thus, it is necessary to adapt the programs. This does not mean that amendments should be made every year because basic things remain unchanged. However, if the school stews in its own juice this is very harmful.

We ask participants of our programs what is the most important from their standpoint and how we can get closer to life. I think that in the future our school will start working much closer to the companies and to their real needs.

E-xecutive: To which traditions of business education is Russia closer, European or American ones?

A.L.: I think that Russia should combine these traditions. Otherwise approach to education risks becomes very narrow. Along with this, you should have a possibility to follow such traditions. You do this when you create programs that ensure high-quality education.

I would like to point at the German approach that deserves attention too. In any case, it is necessary to put the emphasis that is necessary exactly to you. I believe that we gradually leave European standards in education of specialists. This is a common international trend.

E-xecutive: Which actions will help Russia to create real competition for Europe and the US in the field of business education?

A.L.: I watch what is going on in Russia, how the sector of business education is developing and how new schools are built with interest. This is really very important for Russia. That is why it is good when such initiatives are supported by the state.

However, your country needs to strive for higher positions in ratings and to become their participant. At present, the Stockholm School of Economics is the only school in Russia that is ranked on the international level and is in the rating of such well-known international publication as The Financial Times. This circumstance manifests our openness, which is very important. Overall, ratings have a big importance. I have heard many stories, although I am not convinced that they are true, that in Russia it is possible to simply pay for a place in a rating. Such things outrage me.

That is why if Russian MBA schools do not become open it is unlikely that they will develop. Along with this, Russian business schools should interact with each other, borrow experience of other European schools and take part in European ratings. This is very important for improvement, even if you are told that you are not good enough yet.

E-xecutive: Russia does not have large business schools of its own yet. How is it possible to attract students, to achieve recognition and to develop?

A.L.: Russia is a huge and rich country with a high level of education. This is really so since the Soviet time. People are very well educated and have a big wish to study. I think that one of the main obstacles is hiring of lecturers. For Russia it is very important to have its own high-skilled lecturers. You have such people but they work in America now. It is necessary to return them to home. When people have enough work at home they do not need to emigrate. It is necessary to make them interested and to offer better terms. Unfortunately, cooperation of Russian and European business schools is not very close yet.

E-xecutive: Majority of Russian business schools are located in Moscow and St. Petersburg. There is no possibility to get business education in the provinces. Potential students have to go to Moscow, St. Petersburg or Europe. What are the prospects of the Russian provinces?

A.L.: I know that it does not matter for many people living in Moscow what is the state of affairs in Novosibirsk. Of course, this is a problem. Big distances create difficulties. Spending of 14 hours for travel to the necessary city is too much. Many people ask why business schools are not opened in the provinces. There are reasons for this.

It is much more difficult to open a business school in a province than in Moscow. I think that if such school is opened in a province it will not attract very many local residents. Those who wish to study arrive to Moscow. I am not an expert in this field but education is very important for development of a province in any case.

E-xecutive: How actively do women manifest their interest in MBA?

A.L.: Equality deals both with education and with work. In Sweden this issue is discussed more actively than in Russia. Despite that women study in the same schools men are paid much more on average. I believe that the same is happening in Russia. This circumstance is connected with birth and upbringing of children. A man works during this time. He gains more experience and bigger opportunities.

People in Sweden also discuss such novelty as forcing of companies to hire women. For example, if there are two candidates with equal experience – a man and a woman – the company should choose a woman. However, the public gave a hostile reception to this proposal. In this case a woman is hired only because she is a woman and not because she is very clever and has high professional qualities. I think that it is very difficult to climb up the career ladder if you have family and children.

Very many women study in marketing programs in our country now. If you turn to an average rating of work in MBA programs it will be higher for women. In general, women study better. We try to help women, promote them and offer our students to involve their families into the education process.

E-xecutive: Who of your graduates are the pride of the school?

A.L.: This is Yevgeny Petrov, General Director of Promet company, Alexander Yegorov, General Director of Reksoft company. They achieved big success and did very much for their companies. In any case, it is possible to continue this list for a very long time.

E-xecutive: An average potential Russian student of MBA programs is 33 years old. Where is it better to study for him, in Russia, Europe or America?

A.L.: America is America and we are Europeans. If I were a Russian of 33 years old I would not go to America. The European path is possibly closer for the people who know what they expect and where they will move further. In America you will have one kind of examples and in Europe you will have another kind and you will receive European contacts there. I think this is important.

Another question is about Russia and Europe. If I were asked I would answer that there are only few alternatives in Russia that are sufficiently good. Then I would definitely go to some of the European schools. When we asked people why they came to us which alternatives they had they answered that a trip to England was an alternative and this was too far. Everything also depends on what you a striving for. If you wish to make international career in this or that field it is very important to get enrolled in an international school. There are not so many international schools in Russia yet.

Many students do not understand what they wish when they come to a school. This means that you spend money and time for getting of diploma that does not have recognition. Thus, my advice is: evaluate the alternative that you have correctly. Probably this will be Europe and probably not but I believe that enrollment in an internationals school provides a perfect opportunity for broadening of your outlook.

The article prepared by Olga Bedareva, E-xecutive