Why Business Schools Have The Power To Transform Individuals, Companies And The World

Is the world a better place because business schools are in it? Are they keeping pace with the social, economic and technological disruptions the world faces?

These are questions that AACSB International, the oldest and largest accrediting body for business schools, has been thinking about as they consider the role business schools play within the business education ecosystem.

They recognize that the world needs leaders – people with the vision, determination and knowledge required to make a positive and meaningful difference in all areas of society.

When it comes to strengthening the commitment to purpose, people and planet, AACSB believes that each business school is unique and serves as a catalyst that has the power to transform companies and the world.

A journey of continual improvement

An AACSB accreditation is highly sought after in the business education world. But, in the words of AACSB President and CEO Lily Bi, “The accreditation is the tool; the goal at the end of the day is high-quality education and a journey of continual improvement.”

The story of Lily Bi’s own career spans multiple continents and industries. Starting out in China, she moved to Japan then Singapore and later on the US, continuously learning and adapting throughout her life, and working in Florida, where she currently resides.

“Five years is a pretty long period of time in my life,” she reflects. “I’ve moved around a lot.”

With each move came fresh challenges and opportunities, providing a wealth of experience she now draws on in her role at AACSB and a deep appreciation for the door-opening power of a strong degree from a respected institution.

Bi originally worked in the computer science industry, supported by a bachelor’s and master’s in the subject. “From there I realised, being a very specialised, technical person, I wanted to broaden my purview to understand the whole organisation instead of one segment within the organisation,” she explains.

That’s what led her to business school, specifically an AACSB-accredited one, and she obtained an MBA from the University of Texas at Dallas. She returned to the classroom one year into her role as Vice President of Global Certifications at the Institute of Internal Auditors, studying a DBA through a hybrid programme at the University of South Florida Muma College of Business.

“In my case especially, it gave me the opportunity to work and live in different countries. To see things differently. Globalization has been the trend for several decades so I want to make sure AACSB is moving towards being a truly global organization and bringing the best business education to every corner of the world,” she says.

Let’s lead boldly

Global challenges require global solutions. That entails strong collaborations across national borders, industries and organisations. Business schools need to train leaders who can facilitate and maintain these cooperations.

The task is no longer to develop a depth of knowledge in one specific area. It’s about harnessing multi-disciplinary teams with a large breadth of competencies.

“For professors at our accredited schools, it’s in their nature to understand the need to take a broader look at societal issues. I believe that is the essence of business education. And AACSB constantly provides guidance and support to enable business schools to offer learning and produce research that has a positive impact,” Bi asserts.

Like her own career, AACSB reflects this international cross-sector approach to cooperation. The association stands at the heart of a network of 1,900 member organizations spanning the globe, including over 1,000 accredited schools.

The accrediting body provides value for its members in three ways, the first being the accreditation itself. As Lily Bi explains, “That’s central to what we’ve been doing over the past 100 years, helping schools elevate themselves to the highest standard of business education.”

The previous accreditation standards were set in 2013 and covered all the metrics one would expect, including the quality of learning and research at applicant schools.

When the new standards were introduced in 2020, it was a chance to refocus and pay more attention to societal impact. It’s now expected that all AACSB-accredited schools can demonstrate the effects of their teaching and research on the world outside of academia.

“Second, we provide learning and development opportunities for business school deans and associate deans and faculty through various types of conferences and seminars. We’ve actually been increasing the number of these we offer.”

Bi highlights the Societal Impact Conference launched by AACSB last year, which convened again in Copenhagen this September. Its goal is once again to promote a positive societal impact, in line with the organization’s six recommendations for business schools.

She is a firm believer in the value of creating forums for discussion, where people can talk to their peers based in Europe, Singapore or the United States. Shared information is the bedrock of sustainable long-term collaboration.

But AACSB doesn’t just platform its members’ insights. “We also occupy a thought leadership role. For instance, when talking about AI, we provide guidance on how our business schools should approach responsible and impactful research on this topic,” says Bi.

“It’s imperative we have a voice on these issues. And this aspect of our work is not revenue generating at all, it’s purely a service to our schools and businesses in general – not just our members.”

Embracing the future

AI has been on the tip of every tongue this year. ChatGPT made waves when it was introduced at the end of 2022, leading to a scramble as other tech companies sought to make their own versions.

Among predictions of gloom, such as a report from Goldman Sachs estimating 300 million full-time jobs could be lost or degraded by new developments in AI. Technology is a “double-edged sword” in Bi’s view. But she remains cautiously optimistic.

“From our schools’ perspectives, good or bad, technology is a necessity ,” she says, recalling the Covid-19 pandemic when travel restrictions left many students unable to attend campuses in person. Remote learning became the default and even though lockdowns have since lifted, hybrid learning shows no signs of being phased out.

The hybrid experience strikes a personal chord. During her time at Muma College of Business, Bi attended a mix of in-person and online classes. The DBA consisted of physical gatherings once a month for a few days and the rest was conducted online.

“This was pre-pandemic, from 2017-2019. We had lots of online opportunities to interact with the professors and other students. Without the technology that was available to us, it might not have been possible for me to combine my studies with my job at the time,” she says.

Of course, the future is not just written in algorithms. It’s about people and opening the doors to a diverse array of experiences. In Bi’s words, implementing technology successfully is about enhancing human capabilities in education and the workplace.

Reflecting the world we live in

To help schools foster rich learning environments where students have access to a wealth of ideas and experiences, AACSB has now woven diversity, equity, inclusion and belonging (DEIB) criteria into six of its nine accreditation standards.

With members based in over 100 countries, it’s important to listen to schools and consider their individual missions as well as the cultures they operate in.

“We have a lot of affinity groups which facilitate networking opportunities. We enable a lot of conversations online and at conferences, sharing best practices. But we must be mindful that what might be best practice in the US is not necessarily best practice in other parts of the world. The overall trend we’re seeing is in the direction of more diversity,” Bi explains.

Data gathered by AACSB on all of its member schools over the past five years reveals female enrolment has increased by 23 percent on MBA programmes and 36 percent on Executive MBAs. It has also risen by a third on Masters in Management programmes and by a quarter on Specialized Masters.

“We definitely hope these trends will continue, although social change like this normally takes a few decades for us to see a major jump.”

Given how important Lily Bi believes a good quality business education has been for her own career, she finds it encouraging that greater numbers of women are looking to AACSB-accredited schools to open up their professional opportunities.

“I would encourage all women leaders of all ages to focus on what they want to become and what they want to achieve. I’m a strong believer in lifelong learning and the power of business education. I think the beauty of a business degree is that it opens the door to a diverse array of career paths,” she says. “You can easily tailor your degree to whatever you choose in the future.”

It’s apt advice in the context of the organization she now heads. “By offering equitable access to learning and career opportunities for learners with diverse backgrounds and experiences, business schools help to ensure that the next generation of leaders truly reflects the world we live in and the world we all want to see.”