Journal of Management Development Visionary leadership in business schools: an institutional framework Granit Almog-Bareket Article information: Downloaded by UNIVERSITAET OSNABRUCK At 07:01 10 February 2016 (PT) To cite this document: Granit Almog-Bareket, (2012),"Visionary leadership in business schools: an institutional framework", Journal of Management Development, Vol. 31 Iss 4 pp. 431 - 440 Permanent link to this document: http://dx.doi.org/10.1108/02621711211219086 Downloaded on: 10 February 2016, At: 07:01 (PT) References: this document contains references to 52 other documents. To copy this document: [email protected] The fulltext of this document has been downloaded 1495 times since 2012* Users who downloaded this article also downloaded: Colette M. Taylor, Casey J. Cornelius, Kate Colvin, (2014),"Visionary leadership and its relationship to organizational effectiveness", Leadership & Organization Development Journal, Vol. 35 Iss 6 pp. 566-583 http://dx.doi.org/10.1108/LODJ-10-2012-0130 Kevin S. Groves, (2006),"Leader emotional expressivity, visionary leadership, and organizational change", Leadership & Organization Development Journal, Vol. 27 Iss 7 pp. 566-583 http:// dx.doi.org/10.1108/01437730610692425 Tony Morden, (1997),"Leadership as vision", Management Decision, Vol. 35 Iss 9 pp. 668-676 http:// dx.doi.org/10.1108/00251749710186504 Access to this document was granted through an Emerald subscription provided by emerald-srm:203840 [] For Authors If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. 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The current issue and full text archive of this journal is available at www.emeraldinsight.com/0262-1711.htm CONJECTURE Visionary leadership in business schools: an institutional framework Visionary leadership 431 Granit Almog-Bareket Downloaded by UNIVERSITAET OSNABRUCK At 07:01 10 February 2016 (PT) Mandel Graduate Unit, Mandel Foundation-Israel, Jerusalem, Israel Abstract Purpose – Recent decades have seen a change in the environment of business schools. These changes place great responsibility on deans as the leaders of schools to act. To date, there has been a dearth of literature dealing specifically with visionary responses on the part of the deans of business schools to those changes in the institutional environment. The purpose of this paper is to address the most recent institutional pressures in the business education field and present a framework linking it to the visionary leadership deans may demonstrate. Design/methodology/approach – This paper is conceptual in nature and bases its analysis on institutional theory. The use of an institutional lens offers a new perspective on possible visions deans may lead and on the nature of their leadership. Findings – The article proposes an institutional framework of visionary leadership in business schools and suggests that vigorous visionary leadership among deans is required in order to generate a unique school identity and reputation. The paper concludes by outlining steps leaders can take while shaping their vision in order to create a unique organizational identity. Originality/value – The institutional framework has a central place in organizational and educational literature. So far, the literature has not dealt with the links between institutional theory and visionary leadership as a whole, or in business schools in particular. The present paper addresses this gap and offers new insights for researchers and practitioners alike. Keywords Business schools, Leadership, Change management, Institutional theory, Visionary leadership Paper type Conceptual paper Introduction The organizational environment of business schools has been undergoing change in the last few decades. Recent years have witnessed increased national and international competition among business schools (Lorange, 2005). This transformation has created an academic environment that is characterized by a highly institutional nature (Thornton, 2004). Institutional theory views organizations as open systems, thus stresses the relationship between organizations and their environment and the mutual influences between the two (Scott, 2008). The theory emphasizes the social foundation of organizational decision making, and focusses on the manner in which environmental norms impact the conduct of an organization embedded in the context at hand (Meyer and Rowan, 1977). Institutional theory identifies legitimacy as a main motive for these actions and changes. That is, organizations, especially those operating in a field with no solid technological knowledge base, strive to legitimize themselves to assure their survival (Meyer and Rowan, 1977). Legitimacy provides organizations with better access to resources and support of the internal power groups within the organization (DiMaggio and Powell, 1983). However, institutionalized actions are not always effective and do not always cause the specific organization to stand out Journal of Management Development Vol. 31 No. 4, 2012 pp. 431-440 r Emerald Group Publishing Limited 0262-1711 DOI 10.1108/02621711211219086 JMD 31,4 Downloaded by UNIVERSITAET OSNABRUCK At 07:01 10 February 2016 (PT) 432 from the rest (DiMaggio and Powell, 1983; Meyer and Rowan, 1977). The decisions to embrace or reject such institutionalized actions are first and foremost part of the organizational vision. The literature on organizational vision suggests that it is directed both inward and outward. Vision should provide the members of the organization with an inspiring, clear, and stable picture of the future to which they can strive (Nanus, 1992). And at the same time, organizational vision should be the mark of the organizational identity in the eyes of customers and external stakeholders (Katz, 1999). The literature highlights that the responsibility for shaping the vision, while taking into account various interorganizational and external considerations, lies with the leader (Nanus, 1989, 1992). Therefore, the formulation of an organizational vision is designed to integrate the leaders’ vision with the vision of the other members of the organization. The leader’s role is to identify, organize, and give meaning to important information in order to create a picture of the future. The present article aims to address the most recent institutional pressures in the business education field, and present a framework linking it to the visionary leadership deans may demonstrate. Changes in the environment of business schools To date, research on business schools has focussed on the following issues: imparting theoretical and operational knowledge (e.g. selection of candidates, the curriculum, and evaluation); producing research knowledge (e.g. the function of infrastructures, the staff of researchers, and how discoveries are made); the social and professional profile of the institutions (e.g. the socio-economic characteristics and training of researchers); and identifying students who use academic knowledge (socio-economic profiles of students, their achievements, and their aspirations). It is only in recent years that universities, business schools included, have begun to be perceived as organizational entities whose decision-making practices and structural properties are a worthy topic of research (Thys-Clement and Wilkin, 1998). This situation can be partially attributed to the relatively stable environments in which academic institutions functioned, where they were ensured of funding, and competition was limited or nonexistent. In recent years, however, there have been dramatic changes in this environment. For example, the university system has had to grapple with major changes in sources of funding (Thys-Clement and Wilkin, 1998). As the share of government funding for higher education has declined, business schools have become increasingly dependent on fundraising and donations (Cummings, 2011). The economic crisis in 2008 precipitated further cuts in funding to business schools, which necessitated extensive cutbacks and rationalizations (Thomas and Thomas, 2011). The intense competition for budgets caused these institutions to become even more dependent on tuition fees as a source of funding, and there has been increased competition for enrollment of students (Cummings, 2011). In recent decades, there has also been a dramatic increase in the demand for MBA studies, which has been accompanied by an increase in the number of institutions offering programs in this field (Daniel, 1998; Ivy and Naude, 2004). In 2006, the MBA degree was the second most popular degree in the USA (following an MA degree in education), and about onefourth of all Master’s degree students in the USA have graduated with an MBA degree (Herrington, 2010). Moreover, in light of the budgetary priorities of the supervisory authorities and the students’ expectations of the learning experience, business schools face additional constraints, which include employers’ expectations of graduates and considerations regarding the importance of fields of knowledge and research Downloaded by UNIVERSITAET OSNABRUCK At 07:01 10 February 2016 (PT) (Thys-Clement and Wilkin, 1998). As a result, business schools today operate within a changing, dynamic organizational environment. Furthermore, attempts are being made to standardize the curricula and scope of academic programs in order to promote mobility among students in European universities. For example, 45 countries are involved in the Bologna process, which aims to create a European region of higher education that will allow for mobility among students and faculty between different countries in Europe (Cardoso et al., 2008). Similarly, efforts are being made to establish an Ibero-American region, which will include institutions of higher education from Spain, Portugal, and South America (Brunner, 2009). This also affected business schools that belong to a university system. Moreover, field-specific standardization processes have influenced stand-alone business schools. Over the last decade, there has been an increasing trend toward accreditation of curricula and institutions in the field of business administration. For example, the EQUIS program of the EFMD currently includes 130 institutions in 38 different countries (www.efmd.org), and the AACSB program currently includes 620 institutions in 38 different countries (www.aacsb.edu). The advantages of accreditation include: first, standardization of institutions and programs according to uniform criteria, which serve as a threshold for selection and reflect the level of the institution and its programs. These standards are uniform, in that they focus solely on the consistency and coherence of programs (Cornuel and Kletz, 2011; Kletz, 2009); second, evaluation of the school, and improvement of its quality (Urgel, 2007). Interestingly, the process of accreditation has led to two opposing trends in the academic world. Regarding the first trend, the popularity of accreditation creates an institutional environment that exerts pressure on academic institutions and departments to adopt and preserve the practice of obtaining accreditation certificates. These certificates affect decision-making processes, and promote existing tendencies toward isomorphism (Gates, 1997). As a result, in order to minimize the requirements for uniformity, there have been attempts to create brands in the process of accreditation for different categories of schools that specialize in specific areas (Urgel, 2007). However, branding can cancel out the isomorphic effect of the accreditation process. Regarding the second trend, the increase in standardization and institutional isomorphism, as along with the market of selection and competition, have led some business schools to develop a distinctive competence that differentiates them from their competitors. In so doing, they seek to emphasize the added value of their institution and its programs as well as the unique professional identity of their graduates and the knowledge and skills that their students will acquire in the process of training, which cannot be obtained elsewhere. In light of these environmental developments, business schools have had to redesign their visions. In this regard, schools’ deans as leaders play a pivotal role. Vision, visionary leadership, and business schools In the past decade, the word vision has been used frequently by educational, social, and business organizations as well as by individuals. Vision derives from the Latin word meaning “to see.” Many scholars have attempted to define vision, and have related to organizational vision in particular (e.g. Allen, 1995; Bennis and Nanus, 1985; Chance, 1992; Manasse, 1986; Senge, 2006). The content of “strong” and inspirational vision is optimistic. It expresses confidence, addresses intrinsic needs, connects to organizational values, and introduces positive future challenges (Berson et al., 2001). Visionary leadership 433 JMD 31,4 Downloaded by UNIVERSITAET OSNABRUCK At 07:01 10 February 2016 (PT) 434 Nanus (1989) claims that a vision must embody inspirational ethical principles worthy of commitment, and Bennis (1989) even assumes that there is a connection between organizational vision and social improvement. Vision is a tool to motivate employees, create long-term partnerships, to produce the appropriate resources, and enable the organization to change over time. Vision presents a complete metaphor based on a system of basic assumptions whereby leading values are translated into rituals, language, and symbols (Katz, 1999). Vision connects to the heart of people and stimulates people’s emotional commitment to the organizational strategy (Bennis and Nanus, 1985; Senge, 2006). Here, too, the journey that begins by connecting people’s hearts to a product that is an emotional commitment to the organizational strategy. Organizational vision describes an ideal state; the gap between the present state and the ideal state is what motivates people to work (Yoeli and Berkovich, 2010). Deans of business schools are constantly at conflict with themselves over whether to preserve the institutional core of activity or to transform it in order to remain relevant (Zell, 2005). However, they must bear in mind that business schools today face a competitive environment (Lorange, 2002); thus they must be demand oriented, listen to customers and corporations and initiate changes when required (Lorange, 2005). Roueche et al. (1989) found that vision underlies the ability of leaders of academic institutes to change the face of their institution, and that successful leadership creates a broad and committed partnership on the part of the entire institution to the organizational vision. Similarly, Neumann and Neumann (2000) found that the most successful leaders of academic institutes were integrators, who combined vision, a strategic organizational focus and transformative implementation. This naturally leads to questions of how institutional leadership can shape an organizational vision that will lead to success and greatness. An institutional framework of visionary leadership in business schools Lorange (2000) suggested that the responsibility of business school deans to set new promising directions for their schools boils down to making choices. Oliver (1991) suggests that there are five strategies that an organization can choose to embrace in an institutional environment: (1) defy: in which the organization actively opposes the external pressure and ignores it altogether. This reaction may cost the organization its legitimacy; (2) avoid: in which the organization does not want to adopt the environmental rules but on the other hand wishes to seem legitimate and thus embraces symbols and rituals without really changing its core activities; (3) acquiesce: in which the organization “blindly” embraces and follows the external norms. Thus a correspondence is created between the organization and environmental requirements; (4) compromise: in which the organization is aware of the environmental demands, but is also aware of the problems that embracing the demands may arouse, so it negotiates with the environment; and (5) manipulate: in which the organization attempts to control the environment using various kinds of influence tactic, such as “divide and conquer.” Thus, it can be suggested that nowadays deans can choose from one of the five vision strategies: defy, avoid, acquiesce, compromise, or manipulate. The five strategic responses converge into three types of leadership: Downloaded by UNIVERSITAET OSNABRUCK At 07:01 10 February 2016 (PT) (1) conservative visionary leadership, which chooses to reject institutional demands and preserve the organizational status quo by either defying or giving an appearance of complying. Thus, this leadership pursues a classic vision that can cause the institution to lose its legitimacy; (2) calculated visionary leadership, which chooses to accept institutional demands and attempts to excel at fulfilling them. Thus, this leadership attempts to be the best at what is considered environmentally legitimate; and (3) vigorous visionary leadership, which chooses to fight institutional demands either by negation or by manipulation. These leaders manage to balance institutionalized demands and achieve legitimacy and at the same time achieve a degree of freedom to experiment and innovate. Visionary leadership 435 The framework is displayed in Table I. Conservative visionary leadership attempts to put off changes and thus maintain the organizational core intact. Some business schools have taken this direction, and several have remained committed to this approach. The reason for this lies in the fact that the culture of higher education, into which business school leaders are embedded, is characterized by conservative patterns of thinking and administration, and a tendency to preserve the status quo (Taylor and De Lourdes Machado, 2006). However, deciding to rely on its past reputation may threaten the prosperity and survival of the institution (Ivy and Naude, 2004). Calculated visionary leadership attempts to adopt institutional elements, which are well acknowledged by the environment, so that the organization can maintain its legitimacy. As a result, many organizations imitate, adopt and internalize, and isomorphic processes occur as competing organizations become increasingly alike (DiMaggio and Powell, 1983). Owing to the stiff competition, academic institutions are often hesitant to adopt an organizational model that focusses on attaining a unique identity and competitive advantage, rather than adopting a universal model, because they are afraid of sustaining losses as a result of the change (Davies and Glaister, 1996). Hence, many institutions are left without a specific focus, and have not developed a distinctive organizational identity (Davies and Glaister, 1996; Mackay et al., 1995). Vigorous visionary leadership addresses external institutional demands and at the same time attempts to create a unique identity. In this regard, the difference between calculated visionary leadership and vigorous visionary leadership can be explained by the work of Collins (2001). Collins conducted longitudinal research that studied the transition of 11 good companies to excellence. He concluded that the organizational Visionary leadership type Possible strategies in an institutional environment Conservative visionary leadership Defy Avoid Calculated visionary leadership Vigorous visionary leadership Acquiesce Compromise Manipulate Table I. An institutional framework of visionary leadership in business schools JMD 31,4 Downloaded by UNIVERSITAET OSNABRUCK At 07:01 10 February 2016 (PT) 436 transition depends on leadership as a central component. Collins points out five levels of leadership. Leaders at the four bottom levels can produce high degrees of success but cannot elevate organizations from mediocrity to success. Collins (2001) differentiates between the level 4 leader “who catalyses commitment to a compelling vision and higher performance standards” to the level 5 leader “who builds enduring greatness through paradoxical combinations of personal humility plus professional will” (p. 31). Collins deliberates regarding leaders’ ability to reach the highest level in the hierarchy of executive capabilities. Although both types of visionary leadership on the part of deans can propel business schools to success, it is only the latter that can make a school great. Lorange (2000) argued that dynamic business schools can choose one of three options to create value: (1) “mass production,” thus increasing the number of students; (2) “mediation through a network,” thus bringing people together and creating elite clubs; and (3) “unique problem solving,” thus enabling customers to access processes and solve unique problems they were unable to solve on their own. Hence, all schools face the same strategic options, but the vision that directs their policy is directly linked to organizational identity. In light of the competitive environment in business education (Lorange, 2002), it would appear that institutions should make a concerted effort to develop a distinctive competence that differentiates them from their competitors (Canterbury, 1999; Coats, 1998). In the context of academic institutions, pedagogic distinctiveness is particularly important. Strong vision provides a basis for branding and enables the organization to match its own identity with that of its potential client population (Taylor and Nichols, 2010). Thus, only a unique vision can shape a clear organizational identity and create a strong reputation. Reputation is an assessment of an organization – based on observers’ awareness of an organization’ identity, as communicated by organizational members in an effort to shape observer impressions (Barnett et al., 2006). Positive assessments over time create a reputational capital that enhances the organizational competitiveness (Vidaver-Cohen, 2007). Summary and conclusions Today’s higher education market has increasingly become a global one (Hemsley-Brown and Oplatka, 2006), in which competition for funding, donations, and potential students is fierce (Conway et al., 1994). This has become the predominant situation for business schools. Moreover, the economic crisis has raised questions regarding the responsibility of the academia. The Economist (2009) argued that the teaching at schools of business administration lacks a long-range vision, is not based on formal knowledge, and does not emphasize the development of critical thinking. Therefore, these institutions bear considerable responsibility for the economic crisis. Similar arguments in favor of reform in institutions that train graduates in the field of business administration have been put forth in the literature (e.g. Currie et al., 2010; Datar et al., 2011). This situation requires the deans of business schools to show flexibility, to reexamine their basic assumptions and structures, and to consider broad reforms while using their imagination and creativity. Downloaded by UNIVERSITAET OSNABRUCK At 07:01 10 February 2016 (PT) Most business schools have a similar mission and goals. However, in the present climate of global competition, business schools have to develop a competitive edge. This begins with leaders who are driven by personal vision and who seek to promote an organizational vision that will result in a new organizational identity. Research findings have shown that successful leaders in business schools are those who integrate a strong vision with a strategic focus and transformational spirit (Neumann and Neumann, 2000). Therefore, strategic planning should begin with the formulation and promotion of a vision. Leaders can only formulate a vision that responds to the questions: “What is our dream?” and “Why do we exist?” after they have engaged in a comprehensive exploration of their values and have seriously committed themselves to those values. Leadership at its best creates a new reality from ordinary materials through vision (Nanus, 1992). In order to develop vision, leaders today should “look around the corner” and embrace changes as opportunities (Bennis, 1989). Visionary leadership recognizes the social climate in which it lives and works, takes risks, and succeeds in transforming the vision into details (Chance, 1992). Successful leadership notices what is currently happening in the organization, evaluates what is most important for the future and focusses organizational activity accordingly (Bennis and Nanus, 1985). Leadership provides bridges from the present to the future. While managers operate on physical resources such as capital, skills, and technology, leaders operate on emotional and spiritual resources such as values, commitment, and ambitions (Bennis and Nanus, 1985). What then can deans do if they choose to be vigorous visionary leaders? Thomas and Thomas (2011) offer viewing leadership as a learning process. Similarly, Lorange (2010) asserts that leaders grow, and that the leadership skills set can be acquired, either through formal training or through on-the-job experience. Embracing this perspective enables us to start the discussion on a proactive note. The next few paragraphs will outline several recommended steps to assist deans that strive to lead a vigorous vision in their schools. First, Zaleznik (1992) argues that a successful vision is first and foremost a product of an active imagination. It is commonly assumed that successful vision starts with the leader. That is why it is important that visionary leaders be internally committed to proactive leadership (Chance, 1992). True vision is based on a personal concern that is derived from an individual’s values and aspirations (Senge, 2006). This commitment and concern derive from a personal connection to the organizational vision. Similarly, it has been suggested that business school deans reflect on their motives and desires before setting a strategic direction (Thomas and Thomas, 2011). At the same time, it is important that the picture of a leaders’ vision be left ambiguous in order to enable a lively and dynamic leadership process (Zaleznik, 1992). Second, deans must analyze their organization and environment so that they can make “intelligent” strategic choices (Thomas and Thomas, 2011). The analytical process required by leaders of academic institutions was broken down by Keller (1983), who suggested three internal dimensions that the leaders of academic institutions should take into account: (1) institutional traditions, values, and aspirations; (2) institutional strengths and weaknesses; and (3) leadership abilities and priorities. Visionary leadership 437 JMD 31,4 Downloaded by UNIVERSITAET OSNABRUCK At 07:01 10 February 2016 (PT) 438 In addition, Keller suggested three external dimensions: (1) environmental trends: threats and opportunities; (2) market preferences and directions; and (3) the competitive situation: threats and opportunities. Third, Lorange (2000) stressed that successful strategizing involves balancing different viewpoints and forces. The deans of business schools have limited power; consequently, their ability to set a direction for the school relies heavily on their ability to build coalitions and to persuade faculty members to support the vision (Lorange, 2000). Lorange (2000) asserted that academic leader ought to focus his or her activities inside the institution, thus enabling the leader to acquire faculty members’ support and promote a shared vision (Senge, 2006). To sum up the recommendations, only when change processes are supported by a dean’s commitment and integrity can a dean forge collations based on trust, advance his or her vision (Fraguiero and Thomas, 2011), and form true vigorous visionary leadership. Such leadership simultaneously addresses institutionalized external demands (by compromise or manipulation) and promotes novel ideas that have the potential to make the school great. References Allen, R. 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