Cooperative Education in Governance: A Small Business Case Study

Abstract

Professional director and governance author Doug Matheson (see Matheson, 2004) suggested in conversation that there could be merit in developing a formalised process for experiential governance education, perhaps as a governance internship. More young prospective directors could be encouraged to put themselves forward for directorships if such a facility was available. However, MBA teaching has tended to focus on the principles of management, rather than on its practice (Gioia, 2003; Mintzberg, 2004). Traditional MBA models are typically classroom-based, with a collection of ‘taught’ papers. Many agree that MBA and management education in general will be improved by the use of real-world experience (Judge, 2005; Mazany & Francis, 1995; Raelin, 1993). The use of experiential education in MBA programmes is limited. Over the past fifteen years, some universities have begun to introduce experiential elements into their programmes, but these tend to be isolated cases. When used at all, experiential learning has tended to utilise “surrogate experiences” including case studies, outdoor activities (Buller, 1995; Judge, 2005; Mazany & Francis, 1995), simulations and games (Pittaway & Cope, 2007; Romme, 2003; Romme & Putzel, 2003; Ruben, 1999). However, there is a growing trend to introduce some elements of experiential learning into MBA curricula, as the educational outcomes are likely to be superior to those from taught classes alone (Leberman & Martin, 2005). Internships have become a feature of some MBA programmes. These are largely ‘not-for-credit’ and can be offered and arranged through universities, by corporations such as Sony, Toyota, Palo Alto Research Centre, and others, or by some combination of the two (Georgia State University, 2008; Sony Corporation, 2008; The Anderson Graduate School of Management, 2008; Toyota Motor Sales USA, 2008). Despite a rigorous search of the literature, no example of the use of experiential learning in governance could be found. In 2006 Massey University was presented with a unique opportunity. Two entrepreneurs made two of their businesses available to the university, principally for educational purposes. The businesses were both SMEs, trading in the retail automotive sector. These were rolled into a single holding company with two operating divisions, effectively a start-up. The entrepreneurs’ goal was to provide real business (and in particular, governance) as well as demonstrating real day-to-day small-business entrepreneurial activity. Further having been very successful in business, the owners had a desire to contribute back to the community. The university was interested in understanding the implications for MBA teaching in adopting experiential learning as part of the course pedagogy and to explore the possibilities for real-world research in a risk-free environment . Despite the utility and benefits of experiential learning, its use at tertiary level is not without its challenges. Aside from resource pressures entailed in such a programme, there remains the problem of the sometimes conflicting demands of the academic and commercial worlds; the dichotomies of learning and profit. This is certainly an issue for those that administer experiential learning programmes, as noted by Lazarus and Oloroso (2004).