This article first appeared in Poets and Quants
Revolutions start by overturning the status quo. By the end of the 20th century, case studies and business plans had reached an evolutionary dead-end for entrepreneurs. Here’s why and what we did about it.
The Rise of Business Schools – Management as an Occupation
The business school was invented in the first decade of the 20th century in response to a massive economic transformation in the U.S. that took place in the last quarter of the 19th century. The country exited the Civil War as a nation of small businesses and ended the century with large national corporations (railroads, steel, oil, food, insurance, etc.). These explosions in company size and scale created a demand for professional managers. In 1908 Harvard Business School filled that need by creating a graduate degree – the Master of Business Administration. Its purpose was to educate management on best practices to run existing companies.
The MBA Curriculum – From Fieldwork to Case Studies
When Harvard started the MBA program there were no graduate-level business textbooks. The school used the “problem-method” which emphasized fieldwork – getting out of the classroom and visiting real companies– as an important part of the curriculum. Students observed how executives worked, interviewed them, and wrote up how real managers solved problems. Students then discussed these problems and solutions in class.
By the early 1920s a new dean changed the curriculum – shifting it from an industry (Read more...)