A Year to Remember

Perhaps 50 years is not a long time in the life of an academic institution, but it is long enough for IESE to appreciate that its future depends on its ability to generate ideas, attract the best, and to work with commitment.

And as Dean Jordi Canals stated, “As we continue to grow over the
next 50 years, we seek to preserve IESE's unique character in all our
activities.” This singular character is embodied in the school’s transcending mission to instill a spirit of service in managers.

During the yearlong celebration of its half-centenary, IESE commemorated the past and embraced the future. The celebratory events brought us a host of unforgettable moments, shared with business leaders from both the present and the future. We have caught a glimpse of some of the big ideas whose time is yet to come, and met with many of those who will make them possible.

Dean of Harvard Business School (HBS), Jay O. Light, set the stage for celebrations at a conference on the future of management education on IESE’s Madrid campus in May 2007. The dean’s address focused on the relevance of the MBA program. Reflecting on HBS’s centenary, Dean Light approached the topic from a historical perspective.

Dean Light also highlighted HBS and IESE’s deep-rooted association that goes back almost to the school’s beginnings. Light expressed his joy to visit IESE on the eve of its 50th anniversary and described the shared history between IESE and Harvard Business School as a "deeply valued collaboration."

HBS and IESE’s friendship dates from the appointment of the first Harvard-IESE Committee in 1963. Initially created to help IESE launch its first two-year MBA program in Europe, the committee remains active today. The first IESE MBA class graduated in 1966.

HARVARD, A SOLID FRIENDSHIP

After 45 years of close collaboration, it was no surprise that the two institutions would want to celebrate IESE’s 50th anniversary and HBS’s centenary together. As a result, in January 2008, professors, students and alumni from both schools met at IESE’s Madrid campus to discuss one of business and society’s greatest challenges: globalization.

“In this era of globalization, IESE has become a model and an inspiration to all of us in management education who are striving to increase our global reach,” HBS’s Deputy Dean for Academic Affairs, W. Carl Kester, said. “We from Harvard are always astonished when we look at a map of the world and see all the places you could put a little flag marking where and IESE program is offered,” he added.

In turn, IESE Dean Jordi Canals thanked the U.S. institution for “having been, over the years, a reference point for us, a great source of inspiration and learning and a wonderful and privileged source of friendship.”

MORE JOINT CELEBRATIONS

As well as IESE’s foundation, 1957 saw the genesis of the European Union with the signing of the Treaty of Rome. To commemorate this, IESE’s Public-Private Sector Research Center organized a conference in November 2007 titled, “Fifty Years of the Treaty: Assessment and Perspectives of Competition Policy In Europe.”

The EU Commissioner for Competition, Neelie Kroes, was the keynote speaker. The Dutch commissioner put Europe’s consumers at the center of the competition watchdog’s objectives. “Competition policy has had to adapt to achieve a clear objective: to benefit consumers and the economy of the European Union,” she said.

IESE’s foundation also coincided with the launch of the leading Spanish financial publication, Actualidad Económica. IESE Prof. Pedro Nueno and the publication jointly organized the “Chinese Business Women in Leadership” conference, where three of China’s most successful female entrepreneurs offered insights into this vast market.

The conference heard from Yang Lan, one of China’s most famous broadcasters and co-founder and president of Sun Media Investment Holdings; Shi Xiaoyan, founder of Beijing Illinois, a trend-setting furniture and interior design retailer; and Zhou Xiaoguang, founder and president of Neoglory China Holding Company, a costume jewelry manufacturer with 6,000 employees.

Media mogul Yang discussed the Chinese economy’s breakneck expansion. “This longrepressed emotion [commercial enterprise] has been unleashed. There is a feeling that everyone is going someplace and there is an insecurity that comes with the responsibility of being successful,” she said.

A UNIQUE OCCASION, SPECIAL EVENTS

IESE habitually organizes events to facilitate dialogue between the business and academic communities. But as IESE celebrated its 50th anniversary, the school expanded its usual roster of events. As well as celebrating 50 years of history, IESE had its eye on the trends ahead such as leadership, globalization and the future of management education.

To this end, IESE hosted the conference, “The Future of Leadership and the Role of Business Schools,” at the Barcelona campus in April 2008. CEOs, recruiters, senior executives and business school deans agreed that the nature of leadership is changing: employees no longer accept the “command and control” model of leadership.

“More and more, we hear people saying, ‘My life matters to me,’” said Julie Fuller, director of global leadership development at PepsiCo. As a result, business schools must adapt their programs to respond to these changes. As J. Frank Brown, dean of INSEAD said, “Retention of top talent is the shared responsibility of business schools and all organizations.”

The conference touched on some topics discussed in the “Colloquium on the Globalization of Business Education (GLOBE)” organized by Prof. Pankaj Ghemawat, the Anselmo Rubiralta Chair of Strategy and Globalization in October 2007. Around 40 deans from some of the world’s most prestigious business schools attended the event.

GLOBALIZATION

IESE alumni working in a globalized world often need to find ways to lead in multicultural environments. IESE’s International Research Center on Organizations (IRCO) discussed the topic of leadership and multiculturalism at a seminar organized in conjunction with the Cross- Cultural Management Network (CCMN) in January 2008.

IESE Prof. Pablo Cardona explained that to be an effective leader one must have discipline, humility, personal balance and courage. In a multicultural environment, moreover, one must be
aware of the influence that one is having on others, as Prof. Scott Taylor of Boston University noted.

Faculty, business leaders and industry experts returned to this topic at the Global Alumni Reunion in Madrid, which focused on “The New Dynamics of Global Business” (see article on page 44).

TOWARD A MORE HUMAN MODEL

Globalization has brought economic benefits but the need to reconcile work and family life remains a challenge for many employees. Building more sustainable companies and businesses is no longer an option, it’s a necessity, as demonstrated at the "Building Sustainable Societies" congress organized by the International Center of Work and Family in Madrid in June (see article on page 16). Spain’s HRH Princess Letizia of Asturias inaugurated the event.

The reconciliation of work and family life is just one of the examples of how business practices need to be humanized. Thought leaders and academics discussed this and other humanistic business administration models at the 15th International Symposium on Ethics, Business and Society, held at the Barcelona campus in May 2008.

Mgr. Javier Echevarría, chancellor of IESE’s parent institution, the University of Navarra. delivered the inaugural speech at the symposium. The monsignor concluded that Christian humanism and profitability are not at odds. “Quite the contrary. Many experts claim that nurturing people and their integral development is the key to proper company operations.”

LOOKING OUTWARD, LOOKING FORWARD

Alongside the special anniversary program of events, IESE gave a more international perspective to its regular annual conferences that have become such a reference point for academics and business leaders alike.

For example, entrepreneurs and senior executives outlined the path that leads to success for newly created businesses at the International Entrepreneurship Conference held at the Barcelona campus in May 2008.

Delegates agreed that the basic ingredients were passion and an ability to make sacrifices.“No one who has built a large company was in it for the money,” said Klaus Hommels, private investor and European Business Angel of the year 2007.

Another example was the decision to move IESE’s 10th Annual Luxury Brands Forum to Shanghai to debate the concept of “luxury”. In just one generation, China has emerged as the third largest market for luxury goods.

Andrew Wu, LVMH group director for China, used a striking example to describe the profound changes taking place in the nation. The Great Wall of China was built to protect China from the world, but the iconic landmark has hosted a catwalk show for the LVMH group’s FENDI fashion brand.

The conference was organized jointly with CEIBS in China and the Italy-China Foundation.

President of the National Chamber for Italian Fashion, Mario Boselli, concluded that luxury was “beautiful articles, well-made.”

ALUMNI, PLAYING A LEADING ROLE

Of course, IESE would be nothing without its alumni. It was no accident that the 46th IESE Global Alumni Reunion, held in Barcelona in September 2007, marked the beginning of the official celebrations while the following Global Alumni Reunion provided the perfect conclusion.

As well as kicking off the school’s 50th anniversary celebrations, the 46th Global Alumni reunion offered some 2,000 alumni a first-hand glimpse of IESE Barcelona’s new north campus. Participants heard a range of top speakers discuss the theme “Economic, Corporate and Sustainable Growth.”

Nobel Laureate Edmund S. Phelps of Columbia University gave the closing address at the event. Phelps said that any reforms to improve the European economy are not the job of politicians or bureaucrats but of “managers and entrepreneurs on whose shoulders it falls to develop innovative ideas.”

Joaquín Almunia, the European Union’s commissioner for economic and monetary affairs was on hand to give the politician’s insight on the topic, though. Almunia outlined the advantages and disadvantages of globalization in his talk, “Growth and Sustainability: Opportunities for Europe.”

Prof. Niall Ferguson of Harvard University noted that globalization is nothing new. “Trade, capital and labor markets have been globalized before,” he said. “In fact, the period between 1880 and 1914 has more in common with the present age than any other period in between.”

“And just as the last age of globalization fell victim to factors such as an overextended superpower … so the current conditions are ripe for a total collapse of globalization. It pays to learn from history,” Ferguson said.

While a total collapse of globalization had not come to pass, the global financial system was tottering on the edge of an unmitigated breakdown as alumni met a year later at IESE’s 47th Global Alumni Reunion in Madrid in October.

Prof. Lawrence Summers of Harvard University highlighted the role of business schools such as IESE in society’s response to the financial crisis. This role is more vital than ever as business and political leaders look to the lessons of history, finance and economics to "craft a response" to the uncertainty in the global economy, the former U.S. Secretary of the Treasury said.

"Globalization has to be about everyone's interest... The legitimacy that this system needs for it to be preserved is that it should benefit everyone," he said.Summers said that public policy must be mobilized to contain the current crisis in the global economy. The economist will have the opportunity to act on his words: Presidentelect Barack Obama named Lawrence Summers as the next director of the National Economic Council a month later.

ON THE ROAD

As well as events at IESE’s Barcelona and Madrid campus, Dean Jordi Canals toured the globe throughout the year to celebrate the school’s 50th anniversary with alumni overseas.

Almost 100 alumni attended a two-day event held in New York with Dean Canals and Associate Dean Eric Weber in November 2007 where the tour kicked off. William Baker, CEO of the Educational Broadcasting Corporation was the guest speaker.

In April, the tour set off for Asia where more than 460 alumni and friends shared in the celebrations at special events in Hong Kong, Shanghai and Tokyo. Profs. Pankaj Ghemawat, Pedro Nueno and Kimio Kase accompanied the dean.

The final leg of the tour took place in Munich and London, where over 350 alumni joined Dean Canals and Prof. Ghemawat in celebrating the school’s first half century.

In each of the tour’s destinations the dean gave a talk titled, “IESE Turns 50 and the Next 50 Years,” which emphasized the school’s core principles: a global mindset, ethical values and a spirit of service.

On top of the dean’s tour, IESE organized a special program of Continuous Education events with prestigious speakers to celebrate the school’s 50th anniversary with alumni wherever they are based. James George Jatras, an expert in foreign policy and director of Squire Sanders, spoke at an event in New York and on the other coast of the United States, Prof. Jeffrey Pfeffer of Stanford University led a session in San Francisco.

Meanwhile in Europe, Franz M. Haniel, chairman of the family-owned company Haniel Holding, spoke at an event in February in Munich. More than 150 alumni and guests gathered to hear his presentation, "My Life as an Entrepreneur: Key Decisions and Experiences," which was moderated by IESE Prof. Pedro Nueno.

The competitive strategy guru and Harvard Business School Prof. Michael Porter spoke in Madrid on the implications of the shifting global marketplace and competitiveness in Spain in May 2007. Over 200 business leaders heard his discuss the topic in two consecutive lectures. Porter congratulated IESE faculty for "building one of the world's great management schools."

AN HISTORIC GRADUATION CEREMONY

Every graduation ceremony is unique, but graduates of the full-time MBA, Executive MBA and Global Executive MBA classes of 2008 shared their celebrations with IESE’s 50th anniversary.

Juan M. Villar-Mir, president of the eponymous construction, fertilizer and energy group, offered the 16th Executive MBA class valuable advice for the road ahead. “Honesty involves both truthfulness and loyalty, as both are essential if you are to gain the trust of those around you and create the required atmosphere of teamwork and cooperation.”

Narayana Murthy, co-founder and president of the Indian IT giant, Infosys, offered graduates of the 43rd MBA program advice on how to lead in a globalized world. “The greatest challenge that you will face is to create a team that can overcome prejudices of nationality, race, religion and class,” he
observed.

And Hans Ulrich Maerki, former chairman of IBM Europe, Middle East and Africa gave the commencement speech at the 2008 Global Executive MBA Program (see article on page 56).

AN HISTORIC WEB SITE FOR AN INSTITUTION OF THE FUTURE

Even if you missed out in attending the many celebratory events, you can still participate in the 50th anniversary via the 50th anniversary micro site on the school’s homepage. Here you can watch video interviews with some of the most prestigious speakers who have taken part in the celebrations.

There is also a timeline marking key moments in IESE’s last 50 years, illustrated with some pictures from the archives. The web site also explains “The Africa Initiative”, and a special corner is reserved for anniversary greetings from IESE Alumni.

SUPPORT FROM SPONSORING COMPANIES

IESE owes a huge debt of gratitude to the almost 200 Sponsoring Companies that make it possible for the school to remain true to its vocation to develop leaders who can have a positive, deep and lasting impact on people, firms and society through professionalism, integrity and spirit of service.

These companies’ financial support provides funding for research, training young professors, financing interns and the enlargement of the school’s facilities. Companies and alumni provided over half the funds needed for the €36 million expansion of IESE’s Barcelona campus.