25TH ANNIVERSARY OF CEEMAN
LEARNING FROM EACH OTHER: 1998-2002
PART II

1. Introduction
CEEMAN Meetings, Programs and Annual Conferences 98-02
"I asked students who their favorite teachers were and at Stanford and Chicago they couldn't name anyone."
Nenad Filipović, Academic Director of IEDC, was one of the CEE faculty members who went to the United States in the early 1990s to learn from best American business schools. He was impressed with the facilities, classrooms, and students at US schools but gave faculty mixed reviews. "It was odd," he recalled, "I asked students who their favorite teachers were and at Stanford and Chicago they couldn't name anyone. At Harvard, everyone had a favorite, or two and three of them." It is noteworthy, in this regard, that the Harvard Business School puts its top priority on faculty teaching; the business schools at Stanford, Chicago, and elsewhere in the US put far more emphasis on faculty research.

CEEMAN grew from 95 to 145 members from 1998 to 2002, representing 36 countries with additions from Kosovo, Belarus, Serbia, Turkey, and Egypt, among others. Many of these schools, like the ones in CEE, looked first to the West for "best practices" on teaching, scholarship, and operating a management or business school. They, too, discovered that many Western schools were skewed toward "academic" as opposed to more "practical" research and that teaching was downplayed.
How did this come about?
Briefly, starting with the Ford Foundation's influential report in the late 1950s, which chided business educators for being too vocational and lacking a sound scientific basis, Western business schools have put enormous amounts of time and money into becoming theory- and research-based institutions. They have hired and promoted scholars who draw on the literature and research methods of established academic disciplines (e.g., economics, sociology, psychology); and faculty publications in top-tier, theory-oriented, peer refereed journals have become, as former president of the Academy of Management Tom Cummings puts it, the "gold standard and primary determinant of a business school's prestige." While this model started in the US, it has since become the template for schools in the UK, South Africa, Canada, and Australia, and increasingly in Western Europe, Latin America, and Asia.

As a consequence, academic theorizing about business and its leadership has become more distant from practice, research rigor has been emphasized over relevance, and university-based academics themselves spend little time interacting with and learning from practitioners and companies. It has reached the point where many business schools have to employ non-tenured clinical faculty or tap business people as adjuncts to teach students and when it comes to executive education, schools often hire management consultants.

This is not simply a philosophical choice for a management school—it also has to do with a school's ranking and reputation, with student and faculty recruiting (and retention), and with accreditation. Both the EFMD (with its EQUIS accreditation) and to an even greater extent the AACSB (the American-based Association to Advance Collegiate Schools of Business whose reach extends globally) put a premium on discipline-based research as opposed to scholarship aimed at practice or management education.
Would this necessarily be the "golden standard" for business and management schools in CEE?

Eighth CEEMAN Annual Conference in Trieste, Italy, 2000, with (from right to left) Vladimir Nanut, Dean of MIB, Riccardo Illy, mayor of Trieste, Danica Purg and Dutch entrepreneur Bert Twaalfhoven

SECTION 2
Institutional Isomorphism?
CEE business schools became "westernized" through a process known as "institutional isomorphism" whereby organizations become similar to one another.
Speaking to this, Nina Bandelj, on the faculties of IEDC and the University of California, Irvine, contends that many CEE business schools became "westernized" through a process known as "institutional isomorphism" whereby organizations become similar to one another. In this case, similarity was primarily achieved via "institutionalization from the outside."

Western donors, for example, funded the launch or makeover of many of the CEE business schools, effecting change by controlling the purse strings (coercive isomorphism). Professional associations like EFMD and its American equivalent exerted influence by either issuing or withholding their "seal of approval," depending on how various CEE schools progressed (normative isomorphism). Finally, she contends, CEE schools themselves also sought endorsement by and affiliation with Western institutions for the sake of legitimacy and esteem; so they imitated them (mimetic isomorphism).

What this analysis leaves out, however, is CEEMAN's selective intent to "take the best from the West, and leave the rest." Institutional theory also neglects the power of local culture, pride, and association to resist institutional isomorphism and to enable, in the face of new circumstances, a more culturally-resonant transformation.

This culturally-relevant transformation is evident in several CEEMAN initiatives from 1998 to 2002 in the areas of: Educational Needs Assessment, Faculty Development, Co-Learning and Certification, and development of a Collegial Culture.


Ninth CEEMAN Annual conference, Dubrovnik, 2001

SECTION 3
CEE Management Development Needs
RABE President Leonid Evenko and Director General Natalia Evtihkieva, presenting RABE Anniversary gifts to CEEMAN
CEEMAN's 1998 study of management training needs rested on the important idea that local and multinational companies (and their managers and managers-to-be) were key "customers" of CEE management schools. Findings from the original five-country study were very well received by 131 participants, from 21 countries, at a joint CEEMAN/RABE International Research Conference on Management Training Needs at the Achieved Level of Transition from June 7-9, 1999, in Moscow. A Russian professor noted, "The lack of understanding of management as a professional field is one of the main barriers hindering systemic training and development." A Romanian spoke to progress: "an articulated strategy is emerging and taking the place of survival (tactics)." It was agreed to expand the study to Hungary, Latvia, Lithuania, and the Ukraine. A final report, examining findings across the countries was prepared by Milenko Gudić (See Sidebar: Management Training Needs Survey).

An article on the study appeared in the Financial Times, July 26, 1999, and said "Many chief executives in Central and Eastern Europe still put management training and human resources departments at the bottom of the list when it comes to strategic planning and financial resources…."
Sidebar: Management Training Needs Survey
Select highlights of the Management Training Needs surveys of 1999-2001 come from:
Romania. Gabriel Matauan, Executive Director, International Management Foundation, reported that "hierarchy is untouchable in most Romanian companies, professional competencies are valued more highly than managerial skills, and talented young executives are often underestimated and neglected." In turn, "investment in training is very low (US$0.2-US$17.8 per employee per year) and training plans are drawn up only occasionally.

Russia (Moscow and Ural Region). Sergey Filonovich, Dean of the Business School of the Higher School of Economics, reports that management education in the region has been hampered by the lack of management training in the past; restrictions of the Russian legislation on education; the limited number of success stories in Russian business; the absence of a business culture; and negative effects of "fast and easy" money in first years of reform. The report highlights significant training needs in areas of general management, public relations, marketing, and management of change.

Bulgaria. Professors Andreas Dernbach and Mariola Tamnichka find that new competitors are entering the market, core businesses need
restructuring, that firms must find new growth avenues. In turn, businesses must adjust to dramatic changes in technology and their economic environment; some business portfolios must be completely reorganized. Key skill areas cited include decision making, MIS, accounting and finance, and management of change.

Slovenia. Milenko Gudič, Head of Research, and Nenad Filipovic, Deputy Director, IEDC, report that of the companies in their study, some 18% are stable, 46% cite a need for substantial improvement, 27% face very significant change, and 9% require radical transformation. Of the eight companies providing data for 1997 and 1998, five increased the amount of money for management training, the percentage increase ranging from 12.5% to 100%. The remaining three companies maintained investment at the previous year's level (ranging from US$200,000 in two companies to US$625,000 in the other).

Ukraine. Bohdan Budzan, General Director of IMI-Kyiv, I. Tykhomyrova, IMI Kyiv, and scientific consultant economist V. Snizhko report that individual managers in middle or junior management tend to be young and energetic. They belong to the post-independence generation, and are ready for training; sometimes they even ask for it. Managers at every decision-making level require special courses. These courses would benefit existing businesses. They would also develop a new generation of administrators fully equipped to tackle the complex tasks attendant on today's economy.

Poland. Professors Dorota Dobija and Janet Bohdanowicz of Kozminski University highlight some key differences between state-owned and foreign-owned companies with the latter having more progressive training activities.
John Stopford with wife Sally, and Michal Čakrt in Dubrovnik, after speaking at the Ninth CEEMAN Annual Conference. Dubrovnik, 2001.

SECTION 4
International Management Teacher's Academy
Derek Abell and Danica Purg mentioned in their report to the UNDP in 1989 that CEE needed about 2,500 management faculty!
Early on in her leadership of CEEMAN, Danica Purg and her colleagues agreed on the importance of transforming managers into "agents of change" in their organizations and nations. An important contributor would be faculty members who could stimulate and motivate new ways of thinking and doing in the classroom (CEEMAN Board members Derek Abell and Danica Purg mentioned in their report to the UNDP in 1989 that CEE needed about 2,500 management faculty!). On February 14-25, 2000, the International Management Teacher's Academy (IMTA) held its inaugural program at IEDC with 27 young faculty, average age under 30, from 13 countries of CEE.

Over the next years, IMTA, co-sponsored by the Open Society Institute (supported by George Soros), CEEMAN, and IEDC, would run a two-week program in the summer in Bled to prepare junior faculty, initially from CEE countries, to teach in the field of management. Week 1 focuses on general aspects of management education, with special emphasis on teaching methodology––the case method and how to support students' project work. Week 2 divides the young faculty into one of four teaching tracks: Strategic Management, Marketing, Finance, Leadership and Change Management.
IMTA 2001, Bled
Program Head Milenko Gudić had long experience with management education challenges in CEE through his involvement in the late 1980s with Entrepreneurial Incubators and the European Forum for Entrepreneurship Research where he presented a case study on Eskod in 1992 and met Purg, Filipović, Koźmiński, and Abell. Thereafter he was drawn into CEEMAN's orbit, led the management training needs study in 1998, and became Program Director of IMTA in 2010.

IMTA faculty included Professors Obłoj, Randy Kudar, Jose (Joe) Pons, J. B. Kassarjian, Robert Howell and later Jim Ellert and Arshad Ahmad. (SEE Sidebar on IMTA). Kudar, Emeritus of the Ivey School of Business, University of Western Ontario, Canada, and faculty at IEDC, kicked off IMTA's first program with these words: "Those who can - do. Those who can't - teach. Those who can't teach - teach teachers." Then Joe Pons gave faculty the real perspective: "Good teachers have to be in love with education. You are either passionate about it, or you are mediocre."

Milenko Gudić
became Program Director of IMTA in 2010.
Sidebar: IMTA-International Management Teachers Academy
"I don't know of another course like this. It's a gem," reports Jason Cope, an IMTA alumnus, "To have so many distinguished professors to ourselves for two weeks––it's unheard of in academia." Adds Ekaterina Sumarokova of the State University of Management, Russia, about what she gained: "New wings for flying!"

Gudić traces the program's roots to the gap throughout CEE and other developing economies between growing market demand for MBAs and management development and a shortage of faculty who could teach in a "modern way." Amidst today's turbulent global change, he sees a need for a "new managerial and leadership paradigm." On the content side, young faculty are exposed to not only management theory, but also the arts and sciences. On the instructional side, they are encouraged to "experiment" with new teaching styles and approaches. What does the faculty educate educators about?

Kudar stresses that teaching is not an "ivory tower" occupation, but rather a central part of a management's school's value proposition for MBAs and executives alike. Among the lessons he imparts to his charges:
- Teaching is a critical element of our value proposition to candidates for our programs. They have come to learn, to develop new capabilities, to become better managers, and to grow as individuals. We talk about developing leaders for the future, about making an impact globally, about improving organizations––all of this can be facilitated through outstanding teaching.

- It is impossible to teach what you do not know. Clearly one has to have a mastery of the subject or topic in order to teach it. But mastery implies more than that. Outstanding teachers know how to organize and present their material such that it flows logically and has...validity to the student. The classic saying in this area is that the outstanding teacher makes the complex simple rather than making the simple complex.

- Outstanding teachers also emphasize learning as a process, they work to make learning a pleasurable experience, and they provide clear and quick feedback to facilitate improvement and development by students…. In the case of teaching managers and executives, they are aware that executives do not sit, listen, and read all day long. Thus the outstanding teacher knows that it will be necessary to engage the managers in dialogue as an integral part of the learning process

He leaves the young faculty with this vocational message: "The students don't care how much you know until they know how much you care."
IMTA 2002, Bled

SECTION 5
Co-Learning and Certification
CEEMAN continued its emphasis on member co-learning and development
CEEMAN continued its emphasis on member co-learning and development in its second five years, hosting workshops for educators covering:

- Curriculum Design (Budapest, Hungary, 1998)
- The Use of Case Method in Business Education (Budapest, Hungary, 1999)
- Distance Business Education (Riga, Latvia, 1999)
- How to Teach with a Case Study (Budapest, Hungary, 1999)
- Electronic Commerce (Riga, Latvia, 2001)

There were also programs geared toward deans, directors, and academic administrators:

- Assessing Business School Performance (Prague, Czech Republic, 1997)
- Innovative Approaches in Business Education (Sinaia, Romania, 1997; Kiev, Ukraine, 2000)
- Quality in Education – Quality in Business (Riga, Latvia, 1998)
- New Movements in Educating Practicing Managers: Applications in Central and Eastern Europe (Bled, Slovenia, 2000)
- Improvement of Quality in Management Education (Dubrovnik, Croatia, 2001)
In addition, CEEMAN contributed to seminars on Information Technologies in Business Education organized by RABE in Hurgada, Egypt, 1997 and Bistritsa, Bulgaria, 1998 and members continued to host dialogues and faculty exchanges.

In 2000, there were a series of special deans and directors meetings on "Managing Business Schools." Moscow hosted a gathering of Russian and East European Schools, Almaty, Kazakhstan, hosted Central Asian management schools. Vilnius, Lithuania hosted business schools from Central Europe and Bled, Slovenia, welcomed internationalized and advanced business schools. The intent: to share best practices and to forge an identity as CEE business and management schools.
To advance this agenda, CEEMAN members began work on a quality assessment and accreditation system in 1998, the International Quality Accreditation (IQA).
CEEMAN's approach is similar to that of the AACSB and EFMD (EQUIS) in emphasizing a school's mission and its services to the business community, program design and delivery, student body and faculty, as well as knowledge creation and customer protection. A significant point of differentiation is that IQA focuses on how schools tailor international standards to the needs and context of their respective missions and specific environments, rather than a one-size-fits-all approach. Not least, IQA accreditation is less costly than that by the American and European associations.
The five-stage IQA accreditation procedure involves:
1
Assessment of eligibility
2
Development of a comprehensive self-assessment report by the applicant
3
Peer review on-site visit
4
Evaluation report by the peer review committee
5
Award of the CEEMAN IQA
with permission to the successful applicants to use the designation on all institutional materials
The initial IQA award is granted for the period of six years, after which the institution has to apply for re-accreditation.

CEEMAN's original accreditation team included Derek Abell, Sergey Mordovin, Accreditation Committee President, and Vladimir Kolchanov, Accreditation Director. The first schools to receive accreditation from CEEMAN were IMISP Russia (1999), IEDC Slovenia (1999), LKAEM Poland (2001), RICEBA Latvia (2001), and EBS Estonia (2001).

10th CEEMAN Annual Conference, Bled, 2002 (CEEMAN Board members)

SECTION 6
Cultural Context
"The West can teach us a lot about rationalization," but when it comes to culture and "the manager as intellectual," she added "the West can learn from us."
In an April 24, 2000 article in the Financial Times, "East has Cultural Lessons for the West," Danica Purg opined "The best CEE schools are those that made a choice to be independent and that choose their own partners (from the West)." "The West can teach us a lot about rationalization," but when it comes to culture and "the manager as intellectual," she added "the West can learn from us."

There was considerable scholarship and emphases in the US and Western Europe on rationalizing and revolutionizing companies in this era. Michael Hammer and James Champy's book on Reengineering the Corporation: A Manifesto for Business Revolution had gained traction and the management consultancies of Accenture, Bain & Co., the Boston Consulting Group, and McKinsey all featured business processing reengineering (BPR) programs. Soon enough, however, there were mea-culpas from BPR proponents. Thomas Davenport said, "When I wrote about 'business process redesign' in 1990, I explicitly said that using it for cost reduction alone was not a sensible goal…. But the fact is, once out of the bottle, the reengineering genie quickly turned ugly." Hammer himself said:
I wasn't smart enough about that. I was reflecting my engineering background and was insufficiently appreciative of the human dimension. I've learned that's critical.
Michael Hammer
This was a lesson also being learned throughout CEE. Koźmiński and George Yip edited a volume of case studies on Strategies for Central and Eastern Europe in 2000 featuring contributions from Hungary: Goulash Capitalism--János Vecsenyi and Gábor Szigeti; Poland: From Solidarity to Solid Economy--Adrian Szumksi; The Czech Republic: A Window of Opportunity--Helena Hruzová and Zdenek Soucek; Slovakia: Seeking Alliances--Ján Morovic; Slovenia: Small is Successful--Nenad Filipovic; The Baltic States: Trading Hub--Robertas Jucevicius; Romania: Resources for the Region--Cristian M. Jucevicius; Bulgaria: Building on the Black--Bojil Dobrev & Stefan Dobrev; and Ukraine: Europe's Frontier--Bohdan Hawrylyshyn and Pavlo Sheremeta. These studies emphasized that cost-cutting in CEE firms needed to be accompanied by strategic shifts and development of human and social capital.

In 2000, Gary Hamel's Leading the Revolution: How to Thrive in Turbulent Times by Making Innovation a Way of Life hit the management best-seller list. It offered a new direction for the West and CEE whereby companies would develop radical new business models to achieve financial synergies. Unfortunately, the "best practice" example that Hamel featured was Enron—a company whose financial innovation proved to be fraud. Ethical issues were seen as more nuanced and context-specific in studies of CEE practices. In The Russian Capitalist Experiment, Sheila Puffer, Daniel McCarthy, and Alexander Naumov found Russian managers favoring traditional Russian cultural values (grounded in collectivism and Orthodox Christian beliefs) over market-oriented values in much of their business decision making. However, they note that the Russian emphasis on blat --"reliance for favors upon personal contacts with people in influential positions" – seems unethical to many Western managers.
Reflections: CEEMAN 1998-2002

William George, President of Medtronic, USA, Speaking at the 10th CEEMAN Annual Conference, Bled, 2002

SECTION 7
Collegial Culture
CEEMAN was an oasis of know-how that encompassed faculties and business schools from Central and Eastern Europe...
It was in this context that CEEMAN members worked out their own rules of engagement and developed a more or less shared culture. Bogdan Rusu of Gheorghe Asachi Technical University in Romania remembers: "CEEMAN helped us to orient and crystallize the changes we had to undertake. CEEMAN was an oasis of know-how that encompassed faculties and business schools from Central and Eastern Europe which had similar problems and environments. All could understand each other, which contributed to an excellent technology transfer, leading and facilitating each other to better cope with the transition period towards a market economy."

Riitta Kosonen, of Aalto University, School of Economics, in Finland, adds: "CEEMAN had an important role in setting quality standards among CEE management education institutions through its accreditation and various training programs. Also CEEMAN's case-writing competition has served as an excellent means to provide management/business students with real-life teaching cases from the region."
I remember my feelings: incredible flow of energy, intellect and sympathy. Almost immediately I understood that I can't miss an opportunity to join the group of such individuals that represent business education in its purpose and deep sense... Communication with people who had already been through the initial stage of building their B-Schools was extremely important for us. One aspect of that communication was of special value: leaders of CEEMAN considered new members as partners, not as students or 'younger brothers'. Mutual respect was the basis of our relations and I consider it as the most important reason of CEEMAN's success.
Sergei Filonovich, of Graduate Management School, National Research University - Higher School of Economics, recalls the camaraderie when joining CEEMAN
On October 9, 1999, new Procedural Guidelines of CEEMAN were adopted by the Assembly of members. These formalized membership requirements, management principles, and the objectives and duties of CEEMAN. By this time, too, CEEMAN members were developing their own sense of solidarity and community. Sergey Mordovin describes the norms as follows: "We didn't talk politics, focusing instead on what unites us—on common problems and paths to their solution. We spoke of quality standards in an industry whose emergence was unfolding in front of our very eyes with our direct participation. We communicated with and learned from one another, sensing the great mission of forming a new class of professional managers."

Finally, Danica Purg highlights other features that made CEEMAN distinct and appealing for its members: "This special drive for quality (look at our top-class international events!) and a spirit of friendship, mutual understanding, and support are the key characteristics of our association. I often say: 'Come to the CEEMAN conference, you will have a great experience not only learning and networking but also dancing.' The fact is that in CEE there are many more women who are deans and presidents of business schools and that is why the atmosphere is different – we are like a big family. And it is true; we dance after every big event we organize! "

Dancing at the 10th CEEMAN Annual Conference, Bled, 2002

Credits
Text — adapted from the book "CEEMAN - 20 Years of Creating History" by Philip H. Mirvis and Arnold Walravens, 2013

Production and Design Artyom Ushnichkov, 2018

Icons are provided by Tilda Publishing