2 May 2016
The worlds of business and higher education are undergoing fast changes. Transformations in technology and the digital revolution have deep ranging effects on business, organisations and society in ways that have been compared to the changes brought about by the industrial revolution. At the centre of this workshop stood the question as to what these changes might mean for modern institutions and wider society, including what specific changes will be needed to bolster the relevance and effectiveness of democracy, markets, capitalism, education and the university. The workshop brought together a range of world leading academics and thinkers from different backgrounds to discuss these issues.
Speakers
Speakers included:
- John Kay (LSE)
- David Stark (Columbia University)
- The Very Rev’d Martyn Percy (Christ Church, University of Oxford)
- Barbara Czarniawska (Gothenburg Research Institute)
- Jim Mather (Homes for Scotland and former Minister of Enterprise, Energy and Tourism)
Capitalism Without Capital
John Kay opened the workshop with a historical overview of significant economic transformations over the last two centuries to situate current trends. His talk highlighted a paradox of the modern business and finance environment that many companies have much less need for capital. Yet, Kay also observed that executives pay ever more attention to capital markets. The large enterprises of the 19th and the first half of the twentieth century were highly dependent on capital markets to fund their infrastructure, from railroads to steel to the car industries. In contrast, the lion's share of the value of modern firms lies in their knowledge and ideas.
Today roughly only twenty percent of the assets of leading firms such as Apple or Google are tangible. Thus, when modern firms raise capital, the purpose is often only vaguely linked to business operations, but lies instead with various types of financial engineering, liquidity and equity-based employee remuneration. Understanding this historical change in the functions of capital markets and the nature of modern businesses represents a defining future task for policy makers and academics.
Virtues of Dissonance in Rethinking Economies
David Stark focused on the need to understand the creative processes that are necessary to continuously re-build and re-combine the meaning of value in modern economies. Drawing from his research on the transition of Eastern European economies from communist to market based systems, he highlighted how creative entrepreneurs were able to exploit uncertainty between different orders. They were “playing capitalism with communist pieces” as Stark put it. Instead of enforcing one single view on how to conceptualise value, Stark highlighted how it was precisely the uncertainty about which order was at play that allowed the entrepreneurs to be creative and innovative.
By exploiting this uncertainty, entrepreneurs were creating a “science of the not yet”, which continuously explored the next possible re-combination of resources. Hence, the transition between the two systems was not a smooth one. Capitalist processes were not simply built on the ruins of communism but instead with its ruins and pieces. Stark’s talk highlighted how in creative processes fostering a diversity of perspectives can be productive instead of seeking straightforward compromises.
Doctoral Programmes of the Future
Barbara Czarniawska provided a compelling argument to re-introduce humanities into the curriculum of doctoral programmes and in particular management education. In light of the commonly invoked identity crisis of the social sciences, Czarniawska’s talk focused on the role of the humanities in forming not only creative students with a skillset that is adaptive to the rapid changed of modern economies, but also good citizens and socially responsible businesses. To achieve such outcomes, Czarniawska highlighted the importance of a re-formed alliance between academics, businesses and other organisations to inform social science research that can provide benefits for a wide range of individuals and organisations.
Reflections on Leadership Developments in the Church of England
Martyn Percy’s talk offered insightful reflections into administrative and leadership challenges in the Church of England and his function as the Dean of Christ Church at the University of Oxford. He identified the distinction between leading an organisation and leading an institution as an important element affecting his role. While Percy sees organisations as fulfilling a specific purpose that might change based on the preferences of their members, institutions are committed to long-standing values independent of their popularity. His role as a clergyman and leader is to preside and conserve key institutional values and maximise collegiality between members.
Percy emphasised the importance of attributes of listening, compassion and empathy as key elements of leadership. Percy also described voices calling for an increasing ‘managerialism’ in the Church as a threat that might, if realised, erode its key institutional values. On a broader perspective, Percy’s talk raised important questions in relation to the role of institutions in a society that is defined by rapid technological and socio-economic changes.
Why Society Needs a New Generation Educated in Enlightened Leadership
Jim Mather’s talk highlighted the inter-connected nature of changes affecting key societal institutions, namely capitalism, democracy and education. He called for a leadership role of Scottish universities, in partnership with the Scottish government, to address issues of inequality, poverty, inclusiveness and sustainability. To develop a research environment that is conducive and appropriate to address these challenges, Mather stressed the importance for innovative thinking in universities. Such thinking requires the development of new educational alliances between and within universities and government that will strengthen existing capacities. He sees the opportunity for a new-style of management that balances “strict-father” attributes with “nurturing-parent” behaviours to create more purposeful workplaces, intrinsic motivation and the ability for both individuals and their organisations to innovate, endure and grow.
This overview was written by Jim Mather CA (Chairman, Homes for Scotland and Visiting Professor at Strathclyde and Heriot-Watt Universities, and Marian Gatzweiler, PhD Candidate at the University of Edinburgh Business School.