Creativity & Sharing:
The Impact of Management Education
on Business and Economy in East Asia
EFMD Annual Conference
Brussels
June 10, 2013
Dong-Sung Cho
Professor of Strategy, Seoul National University Business School
Jointly Appointed Professor, Cheung Kong Graduate School of Business
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copyright by DS Cho
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Does Management Education Create Impact?
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Does Management Education Create Impact?
Business
School
Research
Deans &
Professors
Service
Education
B-Schools’ Impact on Firms
MBA
Firm
Executives
Does Management Education Create Impact?
Business
School
Research
Deans &
Professors
Service
Education
B-Schools’ Impact on Firms
MBA
Executives
OccupyFirm
Wall Street
Society
The main issues r
aised by Occupy
Wall Street were
social and
economic inequal
ity, greed, corrupt
ion and the percei
ved undue
influence of corp
orations on gover
nment—particula
rly from the
financial services
sector.
http://en.wikipedia.org/
wiki/Occupy_Wall_Stre
et
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Does Management Education Create Impact?
Business
School
Research
Deans &
Professors
Service
Education
Capitalism 4.0
B-Schools’ Impact on Firms
MBA
Firm
Society
Executives
Does Management Education Create Impact?
Business
School
Research
Deans &
Professors
Service
Education
Capitalism 4.0
B-Schools’ Impact on Firms
MBA
Firm
Executives
B-Schools’ Impact on Society
Society
Does Management Education Create Impact?
Business
School
Research
Deans &
Professors
Education
B-Schools’ Impact on Firms
MBA
Capitalism
5.0Executives
Firm
B-Schools’ Impact on Society
Society
Service
http://www.google.co.kr/imgres?imgurl=http://upload.wikimedia.org/wikipedia/commons/thumb/c/c1/C_triad.svg/220px-C_triad.svg.png&imgrefurl=http://en.
wikipedia.org/wiki/Harmony&h=183&w=220&sz=9&tbnid=2q7iE5bJFwu4fM:&tbnh=92&tbnw=110&zoom=1&usg=__-R_wjhh-p_-e0Mbu9ctXoLNiZcI=&doci
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Today’s Question:
What are the critical skills future business leaders need to acquir
e in the coming days of Capitalism 5.0?
- Managerial abilities to make firms economically sustainable.
- Willingness and ability to address social issues
Are we ready?
- Are business professors able to deliver such educations?
- Are business school deans ready to guide professors in this direction?
! Does Management Education Create Impact?
Management Education for Society
Category
Items
EU
(32)
USA
(60)
China
(88)
Korea
(103)
Mean
(4*)
Expert knowledge
2.59
2.28
3.02
2.48
2.59
1.84
2.20
2.26
2.43
2.18
2.63
2.88
2.40
2.40
2.58
Sharing
3.06
3.40
2.64
2.78
2.97
Expert knowledge
1.25
1.42
1.44
1.73
1.46
1.81
1.70
2.01
2.43
1.99
1.84
2.08
1.98
2.38
2.07
2.25
1.73
1.85
2.36
2.05
Society’s expect
Ethical value
ations
(1 to 4 in order o
Creativity
f importance)
MBA curriculum
meeting society’ Ethical value
s expectations
(FA=1; PA=2; P Creativity
D=3; FD=4)
Sharing
Source: Responses of 283 MBA students and graduates of 6 business schools in EU, USA, China and Korea.
*Simple average of the 4 figures in the left, not weighted by the number of respondents or the size of regions
Not to be quoted due to insufficient database without standardization.
Management Education for Corporations
Category
Items
EU
(32)
USA
(60)
China
(88)
Korea
(103)
Mean
(4*)
Efficiency
2.38
2.08
2.66
2.75
2.47
2.69
2.27
2.06
2.23
2.31
2.31
3.12
3.00
2.65
2.77
Social trends
2.81
2.77
2.42
2.33
2.58
Efficiency
1.56
1.77
1.52
1.80
1.67
Strategy
1.50
1.68
1.64
1.86
1.67
Harmony
1.81
1.87
2.00
2.27
1.99
Social trends
1.75
2.07
1.70
2.11
1.91
Corporations’ ex
Strategy
pectations
(1 to 4 in order o
Harmony
f importance)
MBA curriculum
meeting corpora
tions’ expectatio
ns
(FA=1; PA=2; P
D=3; FD=4)
Source: Responses of 283 MBA students and graduates of 6 business schools in EU, USA, China and Korea.
*Simple average of the 4 figures in the left, not weighted by the number of respondents or the size of regions
Not to be quoted due to insufficient database without standardization.
Management Education in East Asia
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Industry-Academic Relationships in East Asia
Research:
- books: monographs, text books and trade books
- articles: academic and business journals
Education:
- undergraduate education
- MBA
- executive education
Service:
- consulting
- outside directorship
- media commentaries
- advising the government on business-related issues
- Mentoring students about careers and lives
Direct involvement:
- start-up by professors
Business School Service for Business in East Asia
Government
advising the government on business-related issues
B-School
(Professors
)
Consulting, outside directorship
mentoring in career & life
media commentaries
Media
Business
(Managers)
The Background of industry-academic relationships in East Asia
2,500-year long Confucian culture deeply embedded in social lives
-Trinity of kings, fathers and teachers (君師父一體)
-High respect for public officers and professors (士農工商)
High context society
-Gwanshi (關係)
-kinship-based sharing and helping
-Deep involvement of professors in government, business and media
Immature consulting industry
Close government-business relationship
-professors advising on business-related issues and crafting policies
Changes in the industry-academic relationship in East Asia
Consulting services declining:
Professional consultancy maturing
The general level of education rapidly rising:
Converging with the US curriculum
Divergent approaches
Faculty’s research ability continuously rising:
Japan in the 1980s
Faculty entrepreneurship slowly rising
Dot com boom returning
!  Converging with the American/European models,
but with divergent approaches
Divergent Approaches in Business Education in East Asia
Executive education
•  Art-oriented program
“Advanced Culture Program” by Museum of Art, SNU
•  Humanity-oriented program
“Ad Fontes Program” by College of Humanities, SNU
“Chinese and Western Classics Program” by CKGSB
•  Country-specific management program (for local and expatriates)
“K-Way (Korean Management Model) 3.0” by aSSIST
•  Integrity-oriented program
“4T (eThics-sTorytelling-Technology-Teamwork) Program” by aSSIST
MBA
•  Asian contents
• 
course: “Doing Business in Asia”
teaching materials: cases on Asian businesses
mentoring: in and outside of office hours
New trends:
art and culture for “Creativity”
ethics and CSR/CSV for “Sharing”
Executive Programs---East Asian Style
Example: “Art & Culture Program” by Museum of Art, SNU
4 Competitiveness in the Era of Softpower
1.  Spirit & Change
2.  Passion & Vision
3.  Communication & Space
4.  Crossover & Possibility
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1.  Spirit & Change
Change & Innovation
- Marchel Duchamp & His Innovative Ideas
Art & Business
- Cultural Innovation of Quebec : Cirque de Soleil & Civilization Museum
Shift of Paradigm: Avant-garde Art
- Exhibitions which Changed the Paradigm of the 20th Century Art
Market & Trend
- Rise & Fall of the Dutch Art Market in the 17th Century
- New Trends in the Contemporary International Art Market
Design & Strategy
- MoA Exhibition Tour & Event
- National Design Strategy
Modern Era & People
- Three Artists of the 18th Century Chosun
- Modern Architect, Le Corbusier
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2. Passion & Vision
Power of Changing the World
-Modern Indian Art
-Alexandros the Great’s Ambition and Ar
Challenge & Adventure
-A Dancer ahead of the Times : Choi Seung Hee
-Design Challenge
Passion & Spirit
-Thousands of Imitation & Creation : Pablo Piccaso
-Artistic Spirit from Desperation : Lee Jung Sub
Dialogue with Future
- Invisible Words
- Global Promotion of Korean Artists
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3. Communication & Space
Life of Storytelling
- Space of Communication & Daily Life
- Brand Communication of the Korea’s Traditional Family Businesses
Communication & Healing
- Feng Shui : Communication between Men & Nature
- Literature of the Earth : Architecture
Beyond Positiveness & Negativeness
- Tilted Ways of Seeing : Anamorphic Subjectivity
- Sculpture of Purification
Arts & Politics
- Cultural Politics of Festivals
- Songs of Dictators
Possibility of Design
- Odyssey of Great Architectures
- Hybrid of Fashion & Technology
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4. Crossover & Possibility
Discovery of Creativity
- Brain Science & Art
- Creative Values of Asia Shared with Silk Road
Art & Technology
- Fusion of Art & Technology
- Opera of Future: Interactive Computer Music
Elimination of Borders
- Convergence & Imagination
- Meeting of Art & Drama : Arte Povera
Art out of Art
- Garden Design as Multi-Art
- Movie as Convergence
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Example: “Chinese and Western Classics Program” by CKGSB
Format:
Starting date:
Location:
Tuition:
6 Modules (18days)
Jun 7 to November, 2013
Beijing, Shanghai, Shenzhen, Wuxi, Chengdu
RMB 128,000
Content
Module 1 in Beijing: China’s 100 scholars in BC 2-4 centuries (
)
Module 2 in Shanghai: Origin of Western Civilization---Greece and Rome
Module 3 in Wuxi: Healing Mind and Body---Buddhism (
Module 4 in Shanghai: Major Religions and Renaissance
Module 5 in Chengdu: Zhouyi (
) and Daoism (
Module 6 in Shenzhen: Modern Western Philosophy
and Chinese Medicine
Example: “K-Way 3.0” by aSSIST
" Korean way
" Geography of mind
" Countries far away, countries nearby
GRAND
" Korea, a nation of a single mindset
VISION
KOREAN
KOREAN
" Characteristics of Korean consciousness
GOVERNANC
VALUE
E
" Leadership learnt from history
KOREAN
" Korean style management 3.0
CHUNKING
LEADERSHIP
Korean Way
" Korean style corporate governance
Management 3.0
" Korean style HR management
BIG FAMILY
KOREAN
CULTURE
" Korean style leadership
PAY SCALE
" Organization design in Korean firms
PEOPLE
FIRST
KOREAN PA
RADOX
KOREAN
MBO
Example: “4T Program” by aSSIST
" 4T stands for
# eThics:
- Etiquettes
- Commitment to the organization
- CSR and CSV
- Patriotism to the motherland
- Dedication to world peace
- Business model for social and global issues
# sTorytelling
# Technology
# Teamwork
" 5 minutes of class time allocated to the ethics of the subject being dealt with
" 50% of extracurricular time spent on activities related to social responsibility
Executives listening to a lecture on evolutionary psychology in the Ad Fontes Program at SNU.
(Park Hyun-koo/ The Korea Herald)
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My Experiment & Learning from the course on
MBA for MBA
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My professorial experiences in Asia, Europe and USA
USA
Harvard Business School
University of Michigan
Duke University
Boston University
Asia
Seoul National University
Seoul School of Integrated Sciences & Technologies (aSSIST)
University of Tokyo*
Hitotsubashi University*
Cheung Kong Graduate School of Business (CKGSB)
Peking University*
Zhejiang University*
Nankai University*
Australia University of Sydney
Europe INSEAD
Aalto University (formerly Helsinki School of Economics)
University of Amsterdam*
* Research only. Otherwise teaching and research.
Experimenting New Courses
At SNU Business School, Seoul
Undergraduate
# Design and Strategic Management (Since 1996) ! Creativity
! Sharing
# CSR & CSV (Since 2010)
MBA
# Management By Art (Since 2011)
! Creativity + Sharing
At CKGSB, Beijing
# Creativity (Since 2013)
! Creativity
Course 1:
Design and Strategic Management
(Creativity)
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Course Design
Objective:
efficiency ! harmony
repetition ! creativity
Means:
1.  Efficiency-oriented management theory ! harmony-oriented design theory
2.  Real-life experience of movie-making and theatric play to overcome fear of
creating something new
Process: Self-introduction through UCC! Design theory ! Project design !
Theatric play ! Project work
Evaluation: Last class on self-evaluation of changes in mind and behavior for cr
eativity
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Pedagogical approach
Contents:
1.  Exercise ! UCC creation for self-introduction
! 1 week
2.  Learning ! lecture on the design theory
! 5 weeks
3.  Out-of-box experimentation ! participation in a play
! 5 weeks
4.  Experience ! project work with company designers
! 5 weeks
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UCC for Self-Introduction (Mr. Chul Kim)
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Design Theory
Disharmony
Oullim
Oullim
Harmony
Dispersion
Unity
Deemphasis
Balance
Emphasis
Rhythm
Proportion
Contrast
Symmetry
Oullim
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Imbalance
Asymmetry
Oullim
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Theatric Play
1.  One 3-hour class of scenario writing
2.  One 3-hour class of “How to act?”
3.  One 3-hour class of music composition (for musicals)
4.  One 3-hour 1 class of on-stage exercise
5.  One 3-hour final class for performance
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Real Business Projects with a Partner Company
1
2
3
4
5
6
7
Issue (Lotte Department Store)
Division
Balance of complaints and service level
Sales
Global SPA expansion
Product
Promotion of culture-based MD
Client Re-segmentation and marketing
Marketing
Media promotion
Talent development strategy
Mgt Support
New distribution channels
Planning
Shopping mall as a land-mark and for regional economic
8
New Business
development
Analysis of foreign environment and development of
9
Global Business
penetration strategy
10 Exterior and interior design for department store
Design
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Course 2:
CSR & CSV
(Sharing)
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Theory of Sharing : Unilateral vs. Bilateral
Win-Win
Outside In
Grantor
Grantee
Inside Out
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Theory of Sharing : Extended Model for Multilateral
Increase in Social Capital
Win-Win
SOCIETY
Grantor
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Grantee
Management of Sharing
Management
$ Efficiency: minimizing delivery costs
$ Effectiveness: meeting the expectations of constituents
Grantor
Grantee
Sharing
$ General field: gratification
$ Professional field: gratification + long-term ef
fects
$ One-time benefit
$ Long-term self-help
Ways and Means
$ Direct support: money and materials
$ Indirect support: education, equipment
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Field Work: Habitat for Humanity
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Field Work: SNU Art & Sharing
Session
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A&S
Activities
Project
Art
Session
Art Education
Project
Sharing
Session
Performance
Project
Project
Session
Visual Art
Project
External
Service
Pilot
Project
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서울
특별시도봉구
강동구윗들경로당
고덕동 (강동구청
지원) 지원)
서울특별시
공원 (도봉구청
서울 특별시 광진구 경원 유치원
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Lessons Learned
Students’ self-portrait UCCs revealed with the same experience
shared by 8 students out of 14
! Participation in musical (jazz and classical) bands
Reasons:
1.  Sympathy: Frequent performances in hospitals, orphanages, elderly ho
mes, etc
2.  Empathy: Must listen to the sounds from musical instruments of other
members before reading the notes
Finding: performing art as a group enhances the attitude of shar
ing.
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Commonality of Creativity and Sharing
Creativity and Sharing are two sides of the same coin.
The root source of creativity and sharing is
! “Experience of Performing Art as a Group”
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Course 3:
Design & Strategic Management + CSR & CSV
(Creativity + Sharing)
=
MBA for MBA
（Management By Art for MBA Students)
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Example: the MBA Course on “Creativity” at CKGSB/SNU
Content
1. Evolution of management thought & “Mechanism-based View”
2. “Environment Creating Mechanism” & “Innovative Management Techniques”
3. “Design Theory” & “Management Design Theory”
4. 3-minute UCC featuring my past, present and future
5. Identification of a “New Tribe”. “Strategy by Art” & “Total Image Management”
6. 10-minute UCC featuring a business model (up to 3 students in a team)
Evolution of Management
1. Early 20th Century: Era of Production Management
(Left-side brain)
Henry Ford
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Evolution of Management
2. WWII and After: Era of Marketing
(Left-side brain)
Philip Kotler
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Evolution of Management
3. Energy Crisis and after: Era of Strategy
(Left-side brain)
Michael Porter
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Evolution of Management
4. 1990s: Era of Innovation y
(Left-side brain)
Jack Welch
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Evolution of Management
5. 21st Century: Era of Creativity
(Right-side brain)
Steven Jobs
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Creativity cannot be learned through management theories.
Management Education
- Left brain focused
- Knowledge accumulation
- Analytic
- Quantitative
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We need to learn creativity through art!
Art Education
- Right brain focused
- Image stimulation
- Emotion
- Breaking the rule of the game
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Art Management Versus Management Art
(Management of Art Versus Management By Art)
Theory
Art
Art
Management
Art
Art Management
(Management Of Art)
Management Art
(Management By Art)
Management
Application
Management
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Difference between Art Management and Management Art
Art Management/Management of Art Industry:
- Applying management to art industry
(which tends to be illogical and producer-centered)
So as to make it profitable and sustainable.
Management Art/Management By Art:
- Applying art to management
(which tends to be too-much-logical and short-term-oriented)
So as to make it creative and differentiated.
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Difference between Art Management and Management Art
Art Management is like
Agricultural management,
Tourism management,
Transportation management, etc.,
helping the art (creative) industry improve its efficiency.
Management Art is like
Management science,
Management philosophy,
Management (business) history, etc.,
providing managers with corresponding disciplines
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Exemplary Projects of Art Management & Management Art
Art Management Projects:
- Management of museums, galleries, auction companies, etc.
- Production of movies, plays, musicals, operas, symphony orchestras, etc.
- Planning and implementing art festivals and other art-related activities
Management Art Projects:
- Starting new ventures (Apple by Steve Jobs)
- Ideation of new product development (100 ways to use mobile phones)
- Composing storylines in marketing (佛跳墻)
- Developing innovative management techniques
-  Designing a new kind of marriage system (NC with Premium Marriage in 2006
)
- Designing a new corporate governance (Vereenigde Oost Indische Compagnie i
n 1602)
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- Designing a new
government system (Montesquieu in 1748)
4 Stages of Management Art
External
customers
------------
Internal
customers
Stage 2:
Stage 4:
Application of art
to advertisement
New business development
through art
Stage 1:
Stage 3:
CSR
Art education for employees
Short-term-----------------------------Long-term
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Final Remarks
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Major Lessons Learned
Criticisms against business leaders as greedy, corrupted and exerting undue influ
ence on government.
New imperatives for business education: “Create positive impacts on society.”
Business school curricular need to be restructured to provide students with an op
portunity to express themselves and work together, so that they become creat
ive and value sharing.
If business schools fail to act on it, society may “create impact on B-schools.”
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Role of Business Schools
To do so, business schools and their faculty have to be the first to be:
-  Creative in research
%  To design a new corporate governance (a la Oost Indische Compagnie, 1602)
%  To formulate a new government system (a la Montesquieu, 1748)
so that the government and firms can march together toward a new societ
y of Capitalism 5.0, where there will be no more “angry birds.”
-  Sharing through education
the wisdom of Capitalism 5.0 with students and managers to help them re
alize a new society for peace and prosperity.
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Happy Coincidence!
We are all here in Belgium,
The place where Dutch people and French people converge.
I imagine Dutch merchants of 1602
And French philosopher Baron de Montesquieu of 1748
Coming out of the graves,
Watching us,
And anticipating us
To create and share the future.
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http://www.google.co.kr/imgres?imgurl=http://upload.wikimedia.org/wikipedia/commons/thumb/c/c1/C_triad.svg/220px-C_triad.svg.png&imgrefurl=http://en.
wikipedia.org/wiki/Harmony&h=183&w=220&sz=9&tbnid=2q7iE5bJFwu4fM:&tbnh=92&tbnw=110&zoom=1&usg=__-R_wjhh-p_-e0Mbu9ctXoLNiZcI=&doci
d=KExNVahtu0Z3MM&sa=X&ei=IWS0UaKIBIaJ7Abep4GwBg&ved=0CKsBEPUBMAw&dur=2271
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