A Letter From Hyderabad

For a business school that was little more than an idea ten years ago, the Indian School of Business has come a very long way. First conceived in the late 1990s with the explicit goal of becoming “an internationally top-ranked, research-driven, independent management institution that grooms future leaders for India and the world,” ISB has leveraged India’s corporate elite (the CEOs of 30-40% of the Indian stock exchange sit on its board) and early academic partners like Wharton and Kellogg to aim for the fences from its groundbreaking in 1999. In a decade’s time it has managed to earn Financial Times’ blessing as the thirteen-best business school globally, an impressive 717 average GMAT for its admitted students, and year-in-year-out placement success with firms like GoogleMcKinseyGoldman SachsBoston Consulting Group, and Microsoft.

ISB’s rapid success is all the more remarkable given that global success has meant going against the grain of Indian management education, from refusing government money (and therefore government admissions quotas), emphasizing research, and insisting that applicants accumulate work experience before applying to filling 28% of its class with women, when India’s IIMs manage only 10%.

Yet ISB’s most distinguishing characteristic–its identification with India–may also be the challenge that has kept it from translating its obvious quality into the kind of brand power that puts even relatively new schools like INSEAD in a higher league (at least in applicants’ eyes). How to get aspiring elite MBAs with no particular interest in Indian careers to earn an “Indian” MBA? That question partly explained the invitation this and 15 other admissions consultants received to come to ISB last week as guests of the school.  Over two and a half crowded days, consultants from the U.S., Brazil, Singapore, and France were treated to a tour of ISB’s oasis-like campus (replete with indigenous peacocks and meticulously landscaped grounds), actual classes by ISB’s formidable faculty, and information sessions on everything from ISB’s history and current status to its research centers. Punctuating the ISB-focused schedule were tours of two of Hyderabad’s leading industrial lights, Infosys and Dr. Reddy’s Laboratories, and a dinner at a palatial local eatery.

Most memorable from this visitor’s perspective were the students–witnessed in action in a Strategic Innovation Management class and off duty during a catered feast of Murg Biryani and other local delicacies. They were sharp, ambitious, and eager to share their pride in their school. And though ISB’s student body is overwhelmingly Indian (hence the invitations to consultants to help change that fact), the exceptions–a Buddhist priest from Japan seeking the management skills to market his Tokyo temple, a Sri Lankan-Australian tech marketer who turned down Kellogg–were equally impressive. ISB’s six “centers of excellence” also stood out:  the Centre for Emerging Markets Solutions is taking a practical, hands-on approach to incubating solutions to “base of the pyramid” issues in healthcare, housing, and energy; and the Centre for Teaching, Learning, and Case Development is attempting to offset the Western-centric focus of MBA cases by writing cases about emerging markets.

But perhaps most memorable was a session near the end of the event in which ISB’s leadership took off its collective marketing hat and asked the consultants for frank feedback on what ISB can do to convince more non-Indians to seek their management degrees in Hyderabad. The ideas they received were candid, creative, and, to this participant’s ears, spot on.  ISB’s pitch is that India (and of course China) must be part of any aspiring executive’s field of reference; an MBA who doesn’t ‘get’ India and the emerging markets is just not bound for the top. What better way to learn the emerging markets than to study there?

But to applicants the hard realities of brand, placement, and salary matter more than appeals to global awareness. Eighty-one international companies come to ISB to recruit–including the likes of Deloitte, Citi Bank, and Novartis–and a U.S. student graduating from ISB can as easily land a position with a U.S. firm recruiting at ISB as with an Indian one (it’s the Indian ISB grad seeking a U.S. job who’ll face visa challenges). Yet most applicants still consider ISB as an option only for those who want to build a career in India. To break down the applicant preconceptions that keep ISB off the same short lists as Harvard, Stanford, or Wharton, ISB will have to market itself as a great school that happens to be in India (with all the special advantages that entails), rather than ‘the Indian business school.’ Columbia, for example, is a great business school whose greatness is enhanced by but is not coextensive with its New York location. ISB is already a great business school, but its location is not yet perceived as a value-add. That will come. With savvy marketing by ISB, it may come sooner than ISB imagines.

Paul Bodine is an MBA admissions consultant and the author of Great Applications for Business School, Perfect Phrases for Business School, Perfect Phrases for Letters of Recommendation. He can be reached at Paul Bodine Consulting, www.paulsbodine.com.

  • Unless you can give me some evidence that Gupta’s ethical weakness has somehow in some way affected the quality of ISB’s program than it seems your only point is that ISB has indirectly received some bad publicity recently. So it has. You seem to be confusing the misdeeds of these people in their consulting careers with the quality of their actions as leaders of ISB.

  • Arthur Dullsworthy

    @Paul: It’s obvious that I can’t decide this matter or anything else for everyone. You’re being silly. But the evidence is compelling and word is spreading: Wharton is tainted; ISB is tainted; Harvard is tainted; McKinsey is tainted. It’s useful to recognize that our leadership caste and the elite institutions of our society have clay feet.

    Rajat Gupta didn’t wake up one morning in 2008 and decide he’d call Raj Rajaratnam straight after a hard day of dialing into a board meeting at GS from his home in Westport. That phone call had a history. Anil Kumar didn’t just run into Rajaratnam at a charity event more than two decades after they were classmates at Wharton and decide on a whim to accept $500 thousand/year in exchange for disclosing confidential client information. His decision had a history.

    Whether other persons, yourself include, agree with me is between them and their own consciences.

  • Yes sir, thanks for deciding that for everyone. I’ll spread the word. Any other pronouncements?

  • Arthur Dullsworthy

    @Paul: ISB *is* tainted by the corruption of its cofounders Anil Kumar and Rajat Gupta. The same is true of Wharton’s class of 1983, which produced Kumar, Raj Rajaratnam and Rajiv Goel, a/k/a The Wharton Three.

  • Arthur Dullsworthy

    It’s not just ISB. McKinsey’s business model always relied on the abuse of confidentiality. See: http://blogs.reuters.com/felix-salmon/2011/03/09/mckinseys-corrupted-culture/

  • According to the Financial Times (March 9): “Mr. Gupta resigned as chairman of the ISB on Tuesday.”

  • Ram

    An individual who is holding responsible position with an educational institutions is expected to be maintaining high standards of professional ethics and personal stature. If academe also goes insensitive to facts the way politics got used to what is the message they offere? Unless educational institutions distant themselves from unethical issues, they end-up only as an interpreters of subject. No need for subjects like Corporate governance, professional ethics, leadership virtues, social responsibility, individual integrity and more..

  • Jordan

    ^^^Agree with Paul…..stop reaching Arthur

  • Meaning what? That he should step down from ISB? Perhaps. That prospective applicants should shun ISB? For what reason? If Nitin Nohria committed high crimes and misdemeanors that had nothing to do with his role at HBS, Harvard Business School’s status as an object of applicant desire would be completely unaffected.

  • Arthur Dullsworthy

    Rajaratnam (sp?) is Wharton. But the difference is that Gupta held a leadership position at ISB.

  • Good point. 🙂 And Anil Kumar is a product of Wharton and M. Rammohan Rao a product of Carnegie-Mellon and Cornell University. No one seriously believes that Harvard or Wharton’s attractiveness to MBA applicants is diminished by the ethical lapses of their bad apples.

  • Arjun

    Well, following that logic- considering Mr. Gupta is a Harvard grad (and not a ISB grad), shouldn’t Harvard be offering more courses on ethics? 🙂

  • Yes, I debated whether to mention that. The fact is that ISB has experienced similar scandals in its leadership before this and survived them. That may be because the ethical missteps of these leaders–including Gupta–did not involve the school or the quality of its program. Is anyone suggesting that ISB should start offering more courses on ethics? Maybe not a bad idea …

  • Arthur Dullsworthy

    Might be some reputational issues now that Rajat Gupta is in disgrace.