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Setting A New Direction
Dean Rich Lyons talks about the Haas School's distinctive approach to developing leaders
During his first year as dean, Rich Lyons, BS 82,
has been focused on mapping a fresh direction
for the Haas School of Business, capitalizing
on its unique assets to build an even stronger
school. CalBusiness caught up with Lyons this
summer to discuss his vision for the school and
its distinctive approach to developing the right kind of leader for
an ever-changing business environment.
How have you been developing a new
direction for Berkeley-Haas?
Strategic planning has been a top
priority of my first year as dean. We
started the process by holding discussions
with various constituents of the Berkeley-
Haas community — including students
and alumni. The faculty spent about five
months looking creatively at how our
Berkeley MBA core curriculum could be
renewed, culminating in a unanimous vote
in May on the first phase of improvements
and new initiatives.
What is the plan for the school?
It all starts with our mission, which is
to develop leaders and to produce pioneering
ideas for all areas of business.
While this is true for us, it is also true for
most other top business schools — and it
is undifferentiating. It’s therefore critical
that we fulfill this mission in a way that
is distinctively Berkeley. We can do that.
And if we do it well, we can redefine the competition among our peers.
How do you differentiate Berkeley-Haas?
The good news is that we have a set of
deep assets that, taken together, provide
all the requisites of a top business school
but also effectively distinguish us. These
defining characteristics provide a perfect foundation upon which to build.
What are the defining characteristics?
There are many. They all emanate
from the big three, which we refer to
as “Place, People, and Culture.” Place
includes being part of Berkeley — its
tradition of intellectual excellence is
deep in the Haas School’s DNA. This
means we are and will remain a worldclass
research institution, in which our faculty
continue to generate new knowledge
and ideas. We are also part of the powerful
global brand called Berkeley. The brand
is a combination of scholarly excellence,
cross-campus connectivity, and dedication
to society’s deepest issues.
Place includes our incredible location
in the San Francisco Bay Area as well —
a business ecosystem of innovation and
entrepreneurship that is the envy of the
world. This fundamentally shapes the way
we think and act at Berkeley-Haas. It contributes
to a prevailing spirit of innovation
on campus. And we have worked hard to
leverage these location advantages in our
teaching and research.
In terms of people, one main aspect is
that Haas has always been a good fit for individuals
who have strong leadership potential
and who excel in putting fresh ideas to work
in their organizations. This combination of
skills is what we have been calling Leading
Through Innovation. It has been happening
here naturally for many years. We see
many of our alumni whose careers embody
this approach to leadership. Now we are
reshaping our curricula to deliver this brand
of leader even more sharply.
We also have a highly differentiating
culture at Haas. Some of the elements
that really stand out include the fact that
Berkeley-Haas people do not accept the
status quo. This is Berkeley, after all!
Students here possess confidence, but
without attitude. This is something we hear
all the time from corporate recruiters; it’s
important to why firms keep coming back.
And our graduates tend to commit themselves
to larger causes that have a positive
impact on the world.
I noticed that you did not include finances as an advantage.
Actually, we have been growing stronger
as a school because we have won some key
financial freedoms from the university that
allow us to compete with the very best business
schools. This increasing financial selfsufficiency
is helping shore up Haas this year
as the UC system faces its worst financial
crisis in history.
So how do you take advantage of these
factors in producing a Berkeley-Haas brand
of leader?
Our strategy for doing so is vintage
Berkeley: that is, great leadership starts
with strong values, such as questioning the
status quo and leading without attitude,
and the ability to innovate. While we
already attract students, faculty, and staff
who subscribe to these ideas, we want to
take it to the next level.
Going forward, we will more actively
select for specific qualities that reinforce
these values and culture. We also need to
make holistic changes to our curriculum,
but in the broadest sense of that word. This
includes the totality of experiences that
make up an education at Berkeley-Haas,
including non-classroom, experiential
opportunities.
What are some of the curricular changes that will be launched soon?
Let me preface my answer by noting
that we are starting most of these changes
in the Full-time MBA Program. But we will
introduce elements of this plan to all of
our graduate and undergraduate academic
programs over time.
First, we are defining leadership in a
more encompassing way, to include strategic
leadership, operational leadership,
and people leadership. Second, we are
redesigning and moving our course in
Leading People to the first term so that
students have a bigger picture, frame-setting
opening to the program. Third, we are
putting greater emphasis on topics such
as managing flat organizations, leading
through influence rather than authority,
and setting cultures of innovation — all of
which define the Berkeley-Haas approach.
We are also launching a new suite of leadership
development experiences as part of
a new approach to our non-credit curriculum.
We think these opportunities really
matter and flesh out what students learn in
the classroom.
And we are developing a finishing
component to the core MBA curriculum
— a structured process for actually delivering
innovation in firms. We envision as
models already-existing programs such as
our wildly successful applied innovation
program Haas@Work, in which students
recommend and then implement innovations
within client companies. There’s
also the Cleantech to Market program we
developed with the Lawrence Berkeley
Lab to commercialize ideas invented by
scientists working in the alternative energy
area. We will take the best of our experiential
learning programs and scale them to
make them available to all students. This
culminating project will be deeply differentiating
and not easily matched by any other
top school.
Why is all of this important?
The key to succeeding in an ultracompetitive
global business environment
is to be different in the marketplace, usefully
different, and this happens through
innovation. Sameness leads to commoditization,
and firms don’t profit if they are
doing the same thing as their competitors.
Firms today desperately need leaders who
can encourage and implement fresh ideas
across their businesses. Berkeley-Haas has
always been good at producing this kind of
leader. And we are determined to get even
better at it.
And we are aiming to educate women
and men who can bring these leadership
qualities to every level of an organization,
from entry level to CEO.
There has been much talk whether business
schools are to blame for the global financial
crisis. Does Berkeley-Haas provide a moral
compass to its students?
Business schools definitely have to take
stock and examine whether or how they
contributed to the crisis. In our own case,
I think we have been building a culture of
leading responsibly — and of course we
should do more. Our culture embraces
a strong ethical framework and socially
responsible business. And it goes beyond
that: Take our value of not accepting the
status quo. I would hope that a Berkeley-
Haas graduate would feel compelled to
speak out when things don't look and sound
right on the job, even if it’s always been
done that way or everyone else is doing it.
Clearly we can’t guarantee that everyone
from our school will behave with high standards
in every case. But selecting people
who resonate with our values and culture
in the first place, and then emphasizing
these ideas everyday when they are here
will help produce grads with a strong
moral compass.
Before becoming dean, you were chief
learning officer at Goldman Sachs, responsible
for leadership development of the firm’s most
senior members. What did you learn there?
Goldman Sachs has always had a widely
admired people leadership development
program — how you get results through
others, how you delegate, how you have
difficult conversations, how you motivate
your people, etc. But the firm was interested
in thinking about other aspects
of leadership, such as how leaders drive
growth, for example, which has to do
with factors such as direction-setting and
opportunity recognition. As a financial
economist, I brought a different skill set
that helped the firm look at leadership
from different perspectives.
The experience at Goldman Sachs
helped me think about leadership in this
broader way, beyond a very effective but
rather narrow frame that is largely organizational
behavior, psychology, and sociology.
These are wonderful disciplinary underpinnings,
but how do we broaden them to
cover all that the firm does and can do
to create value?
Last year, the school launched the public
phase of its $300 million Campaign for Haas.
How does this fundraising effort connect with
your vision?
The campaign will allow us to finance
our vision for Berkeley-Haas: developing
leaders who have what the world needs
more of — graduates with the ability to lead
using the power of innovation. The campaign
has three goals. First is building the
leader's curriculum, as I described, which
will differentiate us from other business
schools. Second -- and the biggest piece
— is to become the business school where
the best scholars and teachers want to stay
and thrive. As part of this goal, we need to
expand the size of the faculty and provide
more support for research.
The third area is focused on transforming
the Haas campus. Fifteen years
ago, when Haas moved from Barrows Hall
to our current building, it dramatically
changed the culture of the school and
opened new doors for us. Now we need
to transform this wonderful set of buildings
to meet new needs because of enrollment
growth and new ways of learning.
We also need a new facility for our rapidly
expanding executive education division.
Teaching executives extends our Berkeley-
Haas leadership brand into the business
world, and it provides solid revenues to
help keep us financially self sufficient.
How have the recession and California
budget crisis affected the campaign and
the school?
Clearly last year was not great timing
to launch the public phase of our capital
campaign, but we had no choice. The good
news is that we have already raised nearly a
third of our goal, and we are hopeful that
our alumni and friends will again be generous
when the economic storm subsides.
We are seeing almost the same number of
alumni give as last year. I think that shows
that we‘re on the right track.
The impact of the budget cuts at
Berkeley and the other nine campuses will
be severe in the short term. Tuition is rising
rapidly. All faculty and staff, including
those at our school, are facing a year of
furloughed days off starting in September
— essentially a pay cut of up to 10%,
depending on one’s salary. This will add
to the competitive pressures we already face
at Berkeley.
The good news is that the school’s new
financial model provides non-state revenue
that we can direct toward our academic programs.
This means Berkeley-Haas students
will see few if any cuts to their programs
and basic services. We think we will be effective
working locally to limit the negative
impacts of a bad year for UC.
You’re the father of two small children. How
do you juggle the deanship with raising a family?
I try to carve out every part of the
weekend that I possibly can to be with
my 9-year-old son, Jake, my 6-year-old
daughter, Nicole, and my wife, Jen (MBA
96). During the week, I'm good for two
evenings a week for Haas, but I don't like
to be away from my family for more than
that. Two to three days every week I take
them to school in the morning.
You are probably the only dean of a top
business school who wears an earring. What is
the story behind it?
Ahh, that. I started wearing the earring
shortly after I joined the Berkeley faculty.
You see how fast this place gets to people?
Actually, one of my colleagues and I went
out and got our ears pierced together. For
me, it’s a reminder of how many degrees
of freedom we actually have in our lives.
We get on certain pathways and do certain
things, but usually we grow the most when
we take risks and experience big transitions.
We don’t need to define ourselves
one certain way, or as one certain thing.
We can be many things in our lives. I like
being reminded of that.
Watch excerpts of
an interview with
Dean Rich Lyons.
Dean Lyons Unplugged

Builder: Dean Rich Lyons swings the first sledgehammer May 26 to begin construction on the new Koret high-tech classroom, the first of many renovations planned at Haas as part of the school’s strategic plan and $300 capital campaign.

Music man: Lyons performs his own rendition of the ’60s Buffalo Springfield song that begins, “Something happening here, what it is isn’t exactly clear,” in the MBA Talent Show.

Family man: Lyons with wife, Jen, MBA 96, and their children, Jake and Nicole.
Three Campaign Goals for Haas

1. Transform the Haas Campus Create a campus that supports the demands of business education of the future and encourages collaborative culture, including a dynamic outdoor meeting space and café and state-of-the-art classrooms. Make space for more faculty and create a dedicated executive education facility.

2. Build the Leader's Curriculum Upgrade the MBA core curriculum to reflect the leadership values of Haas. Build deeply differentiating experiential learning opportunities. Expand international offerings, including an MBA international credential. Strengthen the quality of teaching.

3. Realize our Intellectual Vision Add new faculty and faculty chairs. Support faculty research and activities. Reorganize and provide more funding for centers and institutes.


