IESE FACULTY REFLECT ON CAREER MANAGEMENT
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In this issue of IESE Alumni Magazine, we asked a wide range of faculty members to give advice to alumni on how to manage their careers. Some highlighted specific topics, depending on their areas of expertise. But all were in resounding agreement on one point: the importance of having what Yih-teen Lee, professor in the Department of Managing People in Organizations, defined as, “a clear long-term goal which directs our energy and provides meaning to our life.”

Mark Albion, author, venture philanthropist, former Harvard Business School professor and speaker at this year’s “Doing Good and Doing Well” conference, quotes the following parable in his book More than Money: Questions Every MBA Needs to Answer.

An investment banker was at the pier of a small coastal village when a fisherman docked his small one-man boat. Inside the boat were several large tuna. The banker complimented the fisherman on the excellent quality of his fish and asked how long it took to catch them. He replied, "Only a little while."

The investment banker asked, "Why didn't you stay out longer and catch more fish?" The fisherman said he had enough to support his family's immediate needs. The financier then asked, "But what do you do with the rest of your time?"

The fisherman said, "I sleep late, fish a little, play with my children, take a siesta with my wife, stroll into the village every evening to eat and drink and meet with my friends. I have a full and busy life."

The investment banker scoffed, "I am an MBA and I could help you. You should spend more time fishing and with the proceeds, buy a bigger boat. With the proceeds from the bigger boat, you could buy several boats; eventually you would have a fleet of fishing boats.

“Instead of selling your catch to a middleman, you could sell directly to the processor, eventually opening your own cannery. You would control the product, processing and distribution. You would need to leave the village and move to the capital and eventually to New York or London where you would run your expanding empire."

The fisherman asked, "But how long will this all take?" The investment banker replied that it would take around 15 to 20 years. "But then what?" asked the fisherman. The investment banker laughed and said, "That's the best part! When the time is right, you would announce an IPO and sell your company’s shares on the stock exchange and become very rich. You would make millions!"

"Millions...but then what would I do after making millions?" asked the fisherman.

The banker said, "Then you would retire. Move to a small coastal fishing village where you would sleep late, fish a little, play with your kids, take a siesta with your wife, stroll to the village in the evenings where you could eat and drink and meet with your friends."

Alumni may not be attracted to the fisherman’s lifestyle, despite his highly attractive work/life balance. But the parable does throw up a number of fundamental questions on how we measure success. It also prompts us to reflect on what motivates our career decisions, and whether the way we manage our careers is a true reflection of our desires and expectations.

In this issue of IESE Alumni Magazine, we asked a wide range of faculty members to give advice to alumni on how to manage their careers. Some highlighted specific topics – such as networks – depending on their areas of expertise. But all were in resounding agreement on one point: the importance of having what Yih-teen Lee, professor in the Department of Managing People in Organizations, defined as, “a clear long-term goal which directs our energy and provides meaning to our life.”

In principle, IESE alumni should have a head start in this field. After all, decision making is a critical focus of virtually all of the school’s

programs. And alumni have the benefit of ongoing education, which further helps them to make informed, measured decisions about their future, right?   

In reality, though, alumni’s career management can be piecemeal and reactive, according to Prof. Lee’s departmental colleagues, Profs. Nuria Chinchilla and Steven Poelmans. “Often [MBA] students have one offer that is the most attractive in monetary terms or it is with a prestigious company with a strong brand. That gives the student a sense of self-affirmation. It looks good and it sounds good but it is not always that good,” Poelmans said.

“In this day and age, we focus heavily on the quantifiable, believing it to be the only measure of success we need to be happy,” Prof. Chinchilla said. Chinchilla notes that the signs of “external success” – the high salary or the executive position at a prestigious firm – are easy to measure and quantify. But “internal success,” the level of satisfaction about one’s life, for example, is much more intangible.

“There are many people with all the external appearances of success who are dissatisfied with their lives because they are not doing what they really want,” Chinchilla said.

Mike Rosenberg, professor in the Department of Strategic Management, explained how many people end up there. “Say you are an MBA student and someone mentions investment banking and you think, ‘Yeah, OK’ but you don’t give it a lot of thought. So you put your boat in the investment banking river and the river carries you along.”

“Then you approach some rapids and you have to focus all your attention on keeping your boat afloat. You abandon your friends, neglect your spouse and your children. If investment banking is your true passion – if you are in the right boat for you and in the right river – you’ll ride out the rough. But if it’s not, you are going to hit the rocks at some point.”

The solution, according to Rosenberg, is not to try and paddle upstream against the current. “You need to get your boat out of the river, carry it to another river and then put it back in.”

Identify the target

That can mean thinking long and hard about what you want to do with your life, identifying that “clear long-term goal,” as defined by Prof. Lee. “Self-knowledge is important in this process,” Santiago Alvarez de Mon, professor in the Department of Managing People in Organizations, said. “[Your career plan] should be genuine and original and yours alone; not a photocopy of anyone else’s.”

Prof. Chinchilla also highlighted the importance of self-knowledge as the foundation for this process. “First of all, you need to know who you are and how you are. Then you can identity the unique and unrepeatable personal mission that is inside of all of us.”

Luis M. Calleja, professor in the Department of Strategic Management, suggests that alumni take a wide view when identifying their long-term goal. “You need to mull things over in your head, experiment and try things out, and investigate ‘hidden opportunities’ in other sectors that require similar skill sets to your own.”

Prof. Chinchilla points out that part of this process is personal, but another part of the process consists of accepting feedback. Here, IESE faculty can lend a hand. “I help participants reflect on their career progress and desired future in light of their personal and professional priorities,” Marta Elvira, professor in the Department of Managing People in Organizations, said. “That reflection process helps develop challenging, yet inspiring, career action plans.”   

The importance of accepting feedback is especially true if the decision will impact the lives of others such as spouses and offspring. “Couples need to share criteria,” Prof. Poelmans said. “They need to be explicit about what they are happy to accept or not. This is the most typical mistake of MBAs,” he added.

Poelmans indicated that this process could enhance alumni’s decision-making processes, as well as avoid recriminations or misunderstandings further down the line. “Once we can include the criteria of others, we become better decision makers – as managers and spouses – because we are able to look at things in a broader sense.”

A road map to your
long-term goal

Rosenberg offers alumni a framework for this process. (See Figure 1). “Ask yourself, ‘What is my passion?’” Then alumni need to look at their résumés: that is their current skill set mapped out for them. Alumni also need to honestly identify their restraints. Are you willing to work “anywhere in the world” or “anywhere in the world with a French lycée and a highly developed health care system?”  

The strategic management professor then suggests alumni ask themselves a question that may contradict with their instincts. “Ask yourself: ‘how much money do I need to run my life?’ Many MBAs, especially male MBAs, benchmark themselves purely on how much money they earn, not what they need,” he said.

Once alumni have put everything into the mix, they should identify a job function, an industry and a city they would like to live in. “It’s got to be that narrow or it will not work,” he said.

That said, Rosenberg and his faculty colleagues stressed that, given the current economic panorama, now is not the optimal time to strike out looking for your dream job. “We have to be realistic: there is no beautiful sky out there,” Prof. Poelmans said. “Finding a job in a crisis can force people to become more creative, though, force creative behaviors,” he added.

For aspiring entrepreneurs, however, a crisis can actually provide the ideal backdrop for pursuing one’s ambitions.

“Recessions are the best time to start new companies,” Fabrizio Ferraro, professor of strategic management, said. “Many smart people are willing to take a risk [during a recession] given that their ‘safe jobs’ may not be so safe after all. And many of the resources you need to get started will be available at better prices.”

But in terms of looking for your ideal job, Poelmans said that what is important is to identify your long-term goal and “keep that light burning, keep that dream alive.” By any means, faculty generally agreed that alumni are unlikely to tee off and then score a hole-in-one when reaching for their long-term goals: it may take four or five strokes to reach the flag.

“Imagine you are a tourist,” Alvarez de Mon suggests. “You’ve got a reliable map to depend on and your destination is clearly marked. But if you spend all your time with your eyes stuck on the map, if you don’t look up every now and again, you are not going to enjoy the journey and you could miss opportunities,” he said.
Prof. Lee, who mentors participants in the Global Executive MBA on career management, agreed that it is important to consider career development in a flexible manner to be able to react to circumstances. Borrowing from traditional Chinese philosophy, Lee also proposes participants take a circular rather than linear approach to career management. 

“Certain detours may at first sight seem to be leading us away from our initial goals… But a flexible point of view helps us to accept and benefit from such detours, whether voluntary or involuntary.” As before, what is important is to identify your long-term goal and keep moving toward it.

Cast your net wide

IESE’s alumni network is another useful resource that alumni have in their toolbox. The IESE Alumni Association organizes a number of networking events such as the annual Global Alumni Reunion (see page 80), MBA Alumni Reunions (see page 76) and the Continuous Education events (see page 82).

On top of that, the IESE Alumni Association recently launched its alumni portal, which was created based on feedback from alumni on which services are most important to them. And faculty from the department of Managing People in Organizations is preparing an executive career development program based on academic research.

However, faculty made it clear that when it comes to networking, it is up to alumni themselves to make it work and this requires effort. As Prof. Elvira pointed out, when it comes to networks, IESE’s alumni community as a group is greater than the sum of its parts. “The better the entire alumni cohort does, the more alumni help their own branding.”

Beyond keeping in contact with your class peers, Prof. Poelmans suggests alumni extend their networks. “Research shows that one’s network is strengthened when one works to bridge the structural gaps in one’s network.”

For example, you are a member of the IESE Alumni Association’s Japan Chapter and you accept a post in Brazil. If you work to bring the Japan chapter and the Brazil chapter together, this strengthens your network and the network as a whole. Poelman’s message is: “Don’t just network with people you know – build bridges, ask yourself which groups you can unite.”

In a similar vein, Prof. Ferraro also suggests IESE alumni take a selfless approach to networking (see Figure 2). Ferraro is a globally-recognised expert on networking. His research on the "small world" phenomenon confirms the commonly-held belief that strong social ties are crucial in successful businesses and careers. Alumni can read more about his findings on IESE Insight, the school's knowledge portal.

“Social relationships are created by providing and receiving help,” Ferraro points out. As a result, the professor of strategic management suggests that we don’t start by asking, “but rather by helping others.”

Ferraro quotes Keith Ferrazzi, a former CMO of Starwood Hotels, Harvard Business School MBA and author of Never Eat Alone to illustrate his point. “Those who are best at networking don’t network … they make friends. They gain admirers and win trust precisely because their amicable overtures extend to everyone. A widening circle of influence is an unintended result, not a calculated aim.” 

This is perhaps something alumni should bear in mind when building one’s “personal reputation,” as Alex Herrera (MBA ’97), IESE’s director of Career Services termed it. “Getting to your long-term goal is a question of managing your personal reputation,” he said. “For example, MBA students are building their personal reputations with their peers and faculty throughout the 2-year program.”

While faculty recognized the value of internet-based networking tools, the majority felt that the most effective networking is done in person, not virtually. Ferraro pointed out that research since the 1950s shows that most social relationships start because of physical proximity. “You may need to be physically close to those with whom you want to develop relationships,” he suggested.

This may present a challenge for women executives, according to Prof. Chinchilla. “Men tend to spend more time networking with colleagues on the golf course or in other similar environments, but women tend to socialize with friends outside their professional circle… This is relevant when keeping your hat in the ring for leadership positions where out of sight can mean out of mind.”

Nevertheless, Prof. Alvarez de Mon warned alumni to get their priorities right with respect to networking. “One shouldn’t spend too much energy on working the room at the cocktail reception or constantly lobbying decision-makers…The most important thing is to do your job well.”

Managing others

As alumni gain greater responsibility in their organizations, an increasingly important aspect in their professional aptitude is their ability to inspire others to work well. 

In other words, alumni's professional success depends on their ability as a team leader. “The executive must ensure that his team works better day by day,” José M. Rodríguez, professor emeritus of the Department of Managing People in Organizations, said.

For Profs. Poelmans and Alvarez de Mon, the key here is to know your team members. “Humans are complete beings. Only if you know what makes them tick can you further develop their abilities to the company’s benefit. Recognize each individual’s unique talents,” Poelmans said.

Prof. Rosenberg cites the work of the late IESE Prof. Juan A. Pérez Lopez, who was deeply concerned with the development of people in organizations, in identifying the key to motivating team members. “You’ve got to make sure your team is learning all the time. People are happy when they are learning,” he said. “There are IESE courses that can help with that, for example, the Advanced Management Program (AMP),” he added.

For Helen Wilkinson, an associate researcher at IESE, ensuring that your team members are learning is a win-win situation for the company. “I don’t think there is a better way to attract talent than by working to ensure that your company provides the best conditions to learn and develop professionally,” she said.

And for José R. Pin, professor in the Department of Managing People in Organizations, good team leaders are responsible for their team members beyond the employee’s useful life for the firm. “If the company cannot adequately develop the employee’s career, it should help him or her to leave the company… The company should view ex-employees more as alumni than rejects. Ex-employees can be future clients and an anchor for the future.”  

Looking closer to home, some faculty members had advice for alumni on helping their children manage their careers. “Don’t just look at the demand side of the equation,” Prof. Poelmans said. “Don’t think, ‘there’s high demand for doctors so medicine is a good degree for my child.’ Look at the offer side, too. What are they good at? And recognize that they are unique; not another version of you or your spouse.”

In the meantime

Managing one’s career means more than just identifying and working toward a long-term goal, ensuring that team members are stimulated and learning, and maintaining connections. Alumni also need to ensure that their careers do not become unmanageable and infiltrate every aspect of their lives.

Prof. Poelmans and Prof. Chinchilla, director of IESE’s International Center for Work and Family (ICWF), point to the center’s research on how to find a balance between the professional and home environment. “Work will creep into any cracks you leave open, so you need to be very disciplined about protecting your time for family,” Chinchilla said.

This can be easier said than done and Poelmans points to research in the field of positive psychology for insights on how to achieve it. This branch of psychology focuses on the empirical study of areas such as positive emotions and strengths-based character rather than on manifestations of negative behavior, such as stress-induced breakdowns.

“Positive psychology studies into long working hours and stress show that the most successful executives leave the stress behind once they cross the threshold of their home,” Poelmans said. To achieve this separation, the professor added, you need to be conscious of the fact that work-related stress is affecting you.

You also need to establish a routine or ritual that allows you to transition from one state to another. “Some examples are taking the train home, listening to some relaxing music on your way home, taking a shower, changing your clothes, or spending some time in the garden,” Poelmans said.

But going beyond tips and tricks to resolve the conflict between work and life, Prof. Chinchilla notes that, “These two spheres of the professional and the personal life are increasingly viewed as mutually enriching.” 

Prof. Poelmans points to research carried out by the Boston Consulting Group and the European Association of Personnel Managers. The study found that for young people in Eastern Europe, work itself gives meaning to their life. “For them, it is more important to work in an organization that you respect and allows you to realize your purpose,” he said.

In short, one of the keys to finding balance between your personal and professional life is to ensure that your job is aligned with the “clear long-term goal that directs our energy and provides meaning to our life,” as Prof. Lee stated. “We see more and more MBAs adopting this point of view; they want to integrate work and life,” Poelmans said. “It is not a coincidence.”   

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