Martinoff

Can the professions serve the public good?

MM — Thu, 07 Nov 2013 02:04:29 +0000

One of the aims of the AuditFutures programme that I am leading is to inspire the auditing profession to take responsibility in determining its fate and to proactively engage with the public that we aspire to serve. In partnership with the RSA, the UK’s leading multi-disciplinary think-tank for social progress, we are developing a thought-leadership project on the future of audit. This ambitious engagement with the wider society aims to redefine the role of the profession within the modern context of the public interest and to formulate a vision for the highest aspirations of audit in the 21st century.

About 50 years ago, the great Harvard sociologist Talcott Parsons wrote that the professions have: “become the most important single component in the structure of modern societies.” In an increasingly complex society do we need the professions more than ever in helping us to negotiate the world about us? Or conversely, at a time of much emphasis on empowered investors, stakeholders and citizens is the need for professions diminishing?

Traditionally, there has been a massive asymmetry of information between the knowledge that specialists and the public have. This is now melting away. We can see this even in the medical profession where greater access to information has made patients more aware. So, the question is how do professions – and in particular the accounting profession so implicated in financial crisis – modernise themselves to adapt to these new realities? How do we calibrate what the public interest is and how it can be served?

It is these kinds of questions that will be addressed as part of a new partnership between ICAEW’s AuditFutures initiative (www.AuditFutures.org) and RSA. The Society’s mission rests on the notion of professionals, managers, entrepreneurs and others seeing the value of working together in a spirit of innovation for the wider public good. We want to take bring to this mission contemporary thinking about the audit profession with the aim of engaging stakeholders from accounting firms, academia and civil society in a positive debate. While auditing may seem like a dry subject, it is essential to ensuring accountability and public scrutiny. The auditor could be a trusted professional, who adds value to the whole of the capital markets and in some cases the wider community, by helping to ensure that information that is reported is true and fair, but also valuable to the community that uses it.

Our aim is to help redefine the role of the profession within the context of today’s public interest and to formulate a vision for the highest aspirations we can have for audit in the 21st century. To this end there are a number of key areas to explore and we would welcome your thoughts on the following questions.

First, what is it we mean when we talk about the public interest in the context of audit? Who does audit benefit and who has a legitimate influence on how it operates? What are the needs that the audit profession should aspire to serve?

Second, given the distance of the audit profession from most people’s daily lives, how can the profession develop the characteristics of a modern profession that enjoys public trust? Are there other professions whose journey is instructive?

Finally, the audit profession is vital to the wider debate about trust in institutions – public and private – and value for money. In a context of more complex and increasingly opaque systems, is there a new role for auditing to shine light? What are the new areas in this changing landscape where we need trust and assurance?

One of our challenges will be to get people engaged and to capture their views on the subject. This RSA Comment piece is part of our wider strategy in this respect: you may be within the audit profession, have experienced how it operates in the private or public sector, or have strong views about how the professions need to evolve in the service of society. Either way, we would like to hear from you. In our work we have focused on these key questions but would welcome wider insights.

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Accounting academy: a bridge or just a gateway?

MM — Fri, 02 Aug 2013 01:28:37 +0000

What is the role of education? Is it to inspire generations to learn and open their minds to unlimited opportunities? Is to help people become better members of our society? Or is it just a means for people to make more money in their careers?

A simple Internet search should reveal about two million attempts to answer this question,: from idealistic and utopian to reasonable and pragmatic. Interestingly, most responses are not part of philosophical appreciations of education in society but quite often come from heated debates on the changes needed in education. While it seems there is a consensus on the need for some change, the divergence in opinions stems from the question of how we might achieve this.

Predominantly, we tend to take a typical left-brain approach on how to ‘fix’ education. We search for pathways and incremental innovations. We rarely step back and re-examine the foundations of what we do. Consider the thought-provoking argument of Sir Ken Robinson who has been advocating a radical redesign of education. He says ”the current educational system was conceived, designed and structured in the economic circumstances of the industrial revolution.” In his famous RSA Animate, he describes the current model of education as a factory, where we focus on production line of batches of students..

Is the “factory-based” model of education best suited for auditing and accounting? Is our accounting academy a bridge for new generations to take towards a better society? Or is it simply a gateway to the profession?

This week is the perfect time to start asking these questions. In a few days’ time, the American Accounting Association (AAA) will be dedicating its 2013 annual meeting to ‘brilliantly disguised opportunities’ in higher education, academic research and teaching. Next week, hundreds of academics, practitioners and organisations will discuss how we can turn the challenges of the future into opportunities.

While it’s great that these questions are being addressed at the AAA, we think one very important stakeholder is missing: the students. They will have their own meeting the following weekend, during the Beta Alpha Psi annual conference. Just one mile south of the AAA’s meeting and just one week later. Wouldn’t it be nice if the two conferences got together?

We started having discussions with students a few months ago, asking them about the role and purpose of the accounting academy in the future of the profession, and why they think we need education. We’ve hosted five interactive workshops as part of our AuditFutures University programme and have had conversations with over a hundred students.

What we have found really striking is to hear graduating accountancy students, who are firm in their decision to pursue a career in accounting and auditing, talking about “gaps” and “disconnect” with their academic programs.

So, what are the themes that are close to the hearts and minds of students? I had discussions with over a hundred students from from Baltimore University, Ohio State, Grand Valley State, Midwestern State, Iowa State, University of Manchester and University of North Texas and this blog will outline their greatest concerns.

Not seeing the big picture: trees without a forest

The main ingredient that students view as missing in their university education is the reason for “why we do the things we do” in accounting. A common perception is that individual courses don’t provide a comprehensive picture of the wider role of the profession in society: “we are given assignments and tasks and work with them but we often don’t see why they are relevant. If we want to talk about integrity, ethics or purpose, we need to bring the question of WHY.” This is supported by many students who are otherwise happy with their academic programmes and are satisfied with the quality of teaching but feel the need for an overarching goal besides obtaining a degree and securing a job: “I took a lot of classes that I liked and did very well in most of them but I don’t think they gave me a good big picture for my future job.”

Students feel that their academic programmes prepare them better for work in the public sector. They see the biggest disconnect regarding corporate accounting. Students’ perceptions are that education prepares them well for careers in the public sector but they feel they have little understanding of business and are often welcomed to their new jobs with “Forget what you studied at school – this is how things happen here in the real world.”

Inspiring a generation

The first classes students take in accounting have to be inspiring and motivating to make students dream about their future and work towards it. Accounting education nowadays has a lot more competition from other subjects and students are not shy about saying that: “If I hadn’t made up my mind before I took the introductory classes, I would probably not have chosen this major. This is because of how certain professors teach the course. And I don’t think that you can actually learn to like accounting from the courses we have.”

The views about the first level courses are mixed but they share one common concern: we fail to inspire the next generation to develop a passion for the profession. For some students it is a cold start: “All introductory accounting courses tend to be very dry. Most professors just give you information, ask you questions and grade you on them. But you don’t get taught real accounting until your upper level courses.” For others, the high energy spark of the first date with accounting dwindles slowly: “I was extremely motivated by my Principles 101 course but was disheartened by the long and boring technical learning in the upper courses.”

It is very difficult for students to grasp that there really are choices available within the profession that match with their idealistic views of a better future for accountancy. Students start their courses with big questions about why we need audit, or what the role of accounting is in society. The challenge is to keep this level of excitement through a lot of technical learning and practical projects.

Teaching accountants to fish

The next generation of professionals does not want to be spoon-fed at school. They are hungry for critical reasoning and creative thinking. “Principles and standards change all the time. It is important for us to learn how to think critically.” From our own work, we have seen how important it is to excite students to think and debate issues and stay optimistic.

A key challenge is to free students from their compliant mindset. We need to challenge them to get out this mindset and ask them for their opinions and to question what they are being taught. Often students sit in a classroom with their instructor and think that the teacher knows best. They don’t challenge or question enough. We need to give students permission to ask questions and develop exercises where students discuss a topic without a clear right or wrong answer. “We need more simulations that show and teach us how to think and act in real life situations. This will allow us to take the most out of the academic program.“ This would be very helpful for classes like ethics which mostly could be based on case studies and examples. This would teach students how to think in some difficult situations and how to take active positions.

Another area that students think needs more emphasis is on developing skills and competencies for face to face interactions. They are aware that in a world of mobile and online communications, they might not be prepared for these key skills. ”In our company visits, that was the one thing that was reinforced in almost all meetings. How do we build better client relationships and feel less intimidated?”

Keeping it real

Adding more “real world applications” and “practical examples” is considered essential for students. Many of them think that what they are being taught at school is just abstract principles and they have to face a completely different story when they enter the firms. “When I interned, there were a lot more complications that I didn’t realise before. They allowed me to learn more about my job than from my studies.”

Young people today have to cope with a very tough job market and to constantly search for practical experience outside the classroom. They need to develop a critical appreciation of the necessity for both theoretical and practical knowledge.“During my work experience I gained a lot more technical knowledge than I did in school. Now when I reflect, what companies are doing makes a lot more sense than if I was simply reading about it from a textbook or listening to it in a class.” As more students enjoy work experience, they become aware of the differences between academia and practice. “There is a huge difference of how we studied the practical examples at school and how we actually do things at work. Universities need to find a way of bridging this gap.”

Quite a few of the students told us how group projects were extremely helpful in preparing them for practical experience. In most firms, work is done in teams and learning how to work with different people should continue to be emphasized in schools.

Meeting the classroom’s significant other: the Internship

All students agree that an internship is one of the most important parts of their education before entering the profession. They hope it ensures a smooth transition from the school to the firm and provides coveted hands-on experience. One very important feature of the “ideal” internship is the good balance between structure (“someone holding our hand”) and freeform (“figuring it out for ourselves”). “I was very frustrated at the beginning of my internship as for the first three weeks I had no supervision and I had no idea what I was supposed to do or how I fitted into the bigger picture of the firm, but towards the end I figured it out and felt grateful for the opportunity, even though it took me longer and happened almost at the end.”

Most internships are very competitive and this poses two significant challenges. First, students are often faced with situations where 30-40 people are competing for five internship positions. Most students perceive only a small number of firms as “prestigious” and they often dismiss smaller or more geographically distant firms from their horizons, as not worthwhile. The truth is that, having an internship, even if it is not in audit or in a “prestigious” firm, is extremely valuable for a later career in auditing.

The second issue with extremely competitive internships is that firms battle to get the best students and try to get them in as early as possible. Therefore, students sometimes get internships before they are ready. Some stories from work placements early in the academic programme, suggest students are too young or too unprepared and that it will be better for students and firms to meet later.

* * *

Although I don’t necessarily think that these views should define the debate, it is important to realise their validity and implications for accounting education. It is always helpful to discuss students’ aspirations for the profession and see whether it is ready to welcome and listen to them. As one student from Ohio State said “the accounting profession requires constant and continuous learning. It is not a profession that you just learn and hop on.”

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Naivety has left the classroom

MM — Tue, 30 Jul 2013 01:16:11 +0000

In the summer of 2012, I met with accounting students from six universities to discuss their aspiration for the future of their profession.

I can still clearly remember that one class at my alma mater, University of Chicago. The one class that profoundly challenged me and inspired me to look for more than just a degree from my studies. It was an introductory class in the public policy stream but, as often happens, the teacher made all the difference. The real vivid examples and rich personal stories that he used in his class were so mesmerising and his approach so intellectually stimulating that I still consider his teaching the most influential academic experience of my graduate studies.

I put this professor on a pedestal and highly recommended him to classmates and prospective students – until I accidentally listened to him delivering a lecture in another course. I realised that he repeated the same examples, stories and jokes though slightly changing the context and names. I felt almost betrayed – instead of being a partner in a bespoke academic discourse, I felt like “another brick in the wall.” The foundations of the high pedestal were suddenly shaken. I never stopped admiring and appreciating my professor, but this experience made me less naive.

This all happened years ago, but I was recently reminded of this experience during a few engaging discussions with US and UK accounting students. They shared concerns and frustrations about how their professors repeat the same lectures year after year and “instead of teaching students they just preach at them.” Several students talked about the deep disconnect they often feel with their academic programs and how little enthusiasm they feel about joining the profession.

I find this really disturbing. Especially as these students are a lot less naive than I was during my freshman years. Are academia and practice dangerously misaligned with the aspirations of the younger generation? I’ve heard a lot of comments and opinions about how naive students can be, but I would say that the students who I’ve met are far from naive.

I feel honored to have had the chance to discuss the future of the audit and accounting professions with over a hundred students from Baltimore University, Ohio State, Grand Valley State, Midwestern State, Iowa State, University of Manchester and University of North Texas. These interactive workshops, as part of our AuditFutures University programme, have given us plenty of evidence leading us to these two big questions:

How can the accounting academy adapt to embrace and respond to the needs of new generations?

Is the profession ready to welcome the generation of the millenials and listen to their aspirations for the future?

These are indeed complex questions. No one can claim to really know the answer. In fact, we should first discuss whether we have the right questions. Therefore, I would like to start the discourse by sharing the thoughts and perspectives of the key stakeholders in education – students. I will do this in a series of three blog posts – the first two will focus on these two questions and the last one will offer a few ideas on what we can do and what we are developing in our AuditFutures University programme.

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In search of the golden fleece

MM — Fri, 07 Dec 2012 07:58:56 +0000

On 7 December 2012, we hosted our second AuditFutures assembly. Over 100 participants from diverse backgrounds came together for an open and honest debate about the future of audit and about rebuilding public trust in institutions.

There is a vacuum in public trust, created by failing institutions. We often rush to be fill this space with left brain approaches that lead to bureaucracy, micromanagement and overregulation. What makes our initiative unique is that we take a broader and systemic approach. We look at the opportunities for the audit profession to be part of the answer to the challenges ahead.

We are not interested in Greek tragedies that focus on dramatic problems and blaming our ills on others. Such stories have a single hero in the role of the leader, like Jason, who led the Argonauts on their quest for the Golden Fleece.

In our journey today there are no individual heroes. This is about the public interest. We are all heroes.

AuditFutures reflects the world we are living in today. This is about us being connected, about linking individuals. It is about the paradigm shift from the individualistic society of the 20th century to the world of connected networks. It is about us working together.

So this is our Golden Fleece – the triumph of the team player. The triumph of the higher collective purpose over the ambitions of the individual ego.

I think this is what has captured the imagination of so many of us. This is the momentum that the Audit and Assurance Faculty of the ICAEW has set out to build and this is the movement that the Finance Innovation Lab initiated on 4th of July. This is our AuditSpring.

We are taking radical new approach and inspiring not only people from the profession but also academics, think tanks, policy-makers, standard setters, investors, bankers, and leaders from the civil society. We have all come to work together. Using the proven facilitation methods of the Finance Innovation Lab we hosted participatory discussions in small groups. We have discovered new ways of how we can work together and have understood that collaboration is needed in order to achieve a significant goal.

We have gained a deeper understanding on the need to innovate and have identified innovation themes that we want to explore further. Over the last few months we have been building our collective intelligence and synthesizing our insights.

We have conducted lengthy internal and external consultations with a large number of professionals. The aim of each conversation has been to open up a deeper discussion around the innovation areas of audit that were identified in the 1st Assembly. These lengthy interviews with stakeholders have helped us to create a sense of community, to develop a strong network and to gain knowledge into the fundamental issues and questions that we are trying to address.

We have distilled our ideas and thinking into something more concrete that has given us further insight into how change happens in the profession. This has enabled us to develop an understanding of the broader systemic areas where innovation is needed. Further analysis has enabled us to develop the following model, which describes how change happens in the audit profession.

These are the four areas for systemic change in audit that we want to develop further. They are the four pathways that we have to collectively take. They are not alternatives that we have to choose from but simultaneous work at different levels. They interconnect and interact with each other and create the spectrum of change for greater systemic impact. This model organises our thinking on innovation in audit in the four areas of society, profession, information and people.

Society. Fundamental to our work is the definition of the purpose and the role of audit in our society. We need to understand better the demand for audit and what the dynamic in the market for trust is. How can we reframe and repurpose the role of audit in society?

Institutions: the supply side of the profession – this focuses on the question of how we do audit and how we organise the profession. the structure of the firms, policy process, our regulatory framework. How does this change our practices and institutional forms?

Information: what information do we include in audit and what is the content of audit? How does this change the scope and meaning of the information used?

People: Competency skills and behaviour that can drive change within the profession What new competencies and behaviours are needed?

The last assembly was about the need to innovate audit so that it best serves society. Today we are focusing on the purpose of audit, looking at its fundamental first principles. in the afternoon, we will look into the specific areas of innovation that we can collectively take further into incubation.

We look forward to an interesting discussion today

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Visualising Policy Mapping

MM — Thu, 15 Mar 2012 19:18:17 +0000

The first phase of the Disruptive Finance Policy project, run by the Finance Innovation Lab, is mapping policy ideas for sustainable finance system. We reviewed publications and conducted over 20 in-depth dialogues with key thinkers from the wide spectrum of mainstream finance, social entrepreneurs, academics, business and NGOs. For discussion and presentation purposes we needed a tool or platform to tell the story of project, show the policy ideas and develop a sense for dimensions in which they fit. The Prezi dashboard we developed incorporates infographics of the policy mapping, worksop working groups and introductory presentation.

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The Art Reserve Bank

MM — Tue, 13 Mar 2012 17:11:28 +0000

In the heart of Amsterdam’s financial district, the Kunst Reserve Bank coins art to create awareness about the finance system. Literally.

Artists as Bankers

In the midst of a dysfunctional financial system, a group of economists and artists have created an innovative cooperative to run an experiment of an alternative banking. The Art Reserve Bank will mint exclusive limited-edition coins for exchange of euros. Each month a different artist will design a set of four coins and each one will be issued in only 100 copies. The total circulation of the coins will be limited to 25,000 – 250 emissions of 100 coins, designed by over 60 artists.

The bank will open in April as the first set of coins will be designed by the Scottish avant-garde artist Bill Drummond who is very familiar with the relative value of money – in 1994, his K Foundation burned one million pounds as an artistic and public engagement act.

“Once the Art Reserve Bank opens its doors, you will be able to exchange your regular money into a new currency. We call this currency Art Works — for that is what our coins really are: unique works of art.” said Ron Peperkamp, member of the banks’ Board of Directors. I spoke with him about the idea behind the project.

“The Art Reserve Bank has been established as a monetary experiment to create awareness and involve the public in the discussion about redesigning the finance system. We think that at the moment only economists, bankers and politicians are engaged in the conversation about the money and the future of everybody.”

The goal of the project is to translate abstract monetary principles into tangible products and invite the public to reflect and discuss the very foundations of the finance system. The “art bankers” hope that more people will start to exchange ideas and co-create solutions for the challenges ahead.

Monetary Experiment

The project is a creative and playful artistic endeavor but it shows an important underlying reason for the financial crisis: the huge amount of virtual value pumped into the worldwide monetary system by the banking. Therefore, the Art Reserve Bank will be running the five-year experiment in a way that challenges the existing banking system. The goal is not to offer an alternative currency or advocate for the gold standard. Rather, the cooperative aims at pointing the debate to the heart of the banking system problems. Therefore, the total circulation will be restricted and registered in advance and all coins will have a “money-back guarantee.” Each coin will be a transferable deposit, accumulating a simple 10% interest from the date the coin was issued. The exchange rate will be defined by the online market, where individuals can exchange, buy or sell coins. The initial rate will be set to €100 and with the guaranteed refund policy, it could not decline or create market crash.

Building the Bank

Not only the site of the bank is unique – in the center of the financial district of Amsterdam – but also, the “building” itself. It will be a bank “stripped to its bare essentials: simple in concept and literally completely transparent.” The head office will be a bare terrain, measuring 45 x 35 m with only three structures: the press house (a 4m glass cube for the 6-ton friction press), the safe (a heavy concrete cube, “safer than the Dutch National Bank”), and a counter where customers could exchange coins for euros. The blueprint of the bank was drawn prior to construction on the actual site with 1:1 scale (a brilliant idea).

Financial forecasts

Ron Paperkamp would not make prediction of how long the bank would be in operation: “It will not be more than five years as after the preset five-year period of the experiment the bank liquidates itself. Obviously the bank will by then have insufficient capital to answer all calls on deposits. We think however, that most people will not want to exchange their Artworks back to euros. Which immediately proofs the possibility of art as an intrinsic value of a reserve currency”

I am definitely thinking of getting a coin from the Art Reserve Bank! And I wonder… should we form an art innovation group at the Finance Lab?

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The Story of the Finance Innovation Lab

MM — Wed, 07 Mar 2012 14:10:11 +0000

I am really thrilled that during the weeks when media attention was on the Academy Awards and Golden Globes, we made a video that helped the Finance Lab win the NESTA/Guardian competition for the 50 radical ideas that transformed Britain! And I am excited that over 1000 unique visitors have already seen the video in just a couple weeks! Our goal was to tell the story of the Lab and to invite others to join the conversation… and it is already happening!

The Lab is a space that enables you to pause, step back and reflect. Looking back at how we created the video, I think I learned three things:

Number one: a story has many faces. The Lab is a “place where people can come together to rethink and repurpose” (as a popular video goes). Therefore, the story of the lab can be best told through the voices and faces of many people. We aimed at creating an authentic, even amateurish feel of the video that shows the personal and human character of the Lab. I think the main strength of our story is the honest and unscripted conversation between professionals, entrepreneurs, and innovators who want to work together to recreate the finance system.

Number two: you can never underestimate the importance of technical factors

You always need more light than you think you do – of course we knew light was essential but it was only after seeing the interviews in FinalCut Pro, we knew we needed more. And while there are software effects that could partially compensate for underexposure, it is best to have more light from uniform sources.

Footage is never enough – every scene in the story line could be told in a richer way if you have more footage to choose from. After making the mistake of recording short segments of “exactly what we [thought] we need” we realised that we need more. Having extra scenes to select from, is not a luxury, it is a necessity.

Cameras enjoy the silence – hours spent in Adobe Soundbooth trying to remove the background noise of a cocktail chatter or the “Ground Floor. Going up!” from a suddenly opening lift, can teach you to listen before you speak. Having a quiet, uninterrupted space is really important, and we had to reshoot or play with most of the interviews in the video.

Every little helps – consistency and design elements can really help bring in the whole story together. Instead of using standard and default fonts and effects, we tried to incorporate design elements from the Lab’s brand.

Renewable energy – who hasn’t ran out of battery power during the most memorable moment worth recording. Even though I could blame it on poor design of battery level indicators, I have to admit it happened twice, even with the back-up camera. It is so easy to get carried away, when you work on something you truly enjoy! And this leads to the third lesson…

Number three: you can’t do great things unless you have fun. Indeed, video and sound editing asks for long hours, strong coffee and high processing power. But working with the amazing Rachel Sinha opened another level of combining creative fun with productivity. We really had fun making this video! And the enthusiasm and energy of everyone who helped us was truly contagious.

What’s next? I am eager to continue exploring new ways of engaging design thinking and communication in influencing sustainability strategy. My professional interest is in utilising visual and data tools that nudge financial and economics behaviour. I would love to connect with more people and collaborate on creative projects with greater purpose.

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Get direct debit from… your food waste

MM — Thu, 26 Jan 2012 21:19:49 +0000

GSB reported on a South Korean company introducing an innovative waste collection and recycling/composting system that credits users’ bank account every time they dispose their food waste in the RFID-equipped collection bins. It is indeed a cool idea and it is designed to help South Korea deal with their increasing food waste – according to the article, the country spends about £10bn annually on collecting and processing food waste.

Indeed, it is a neat idea to utilise the ubiquitous radio-frequency ID technology into a behaviour change campaign that will save billions and will reduce greenhouse emissions.

This solution to food waste misses the main point of the problem: the very existence of food waste. Instead of trying to motivate people to recycle more and compost more food waste, why not try eliminate the food waste in the first place? Of course, banana peels and avocado seeds should be composted and I could be rewarded for making the effort. But what about leftover take-away lunch or spoiled 1-gallon milk crate (bought in bulk quantities from the big-box grocery store)?

In most lower-income countries very little food is wasted (the higher proportion of field-to-fork waste in production and collection of food is another issue). This “food efficiency” is due primarily on the scarcity and lower income but also on social culture and traditions (comparing recipes from different countries would show interesting results and correlations between current food waste and culinary traditions).

In our advanced and rich world, where convenience and speed dominates food manufacturing we continue to grow disconnected with the source of our food and destination of our waste. And this is my main objection to the simple admiration of the South Korean innovation. I could see some niche applications but overall it is a distraction from the more systemic view of the food waste problem. Unfortunately, way too many great ideas and innovations (like energy efficiency, recycling, EVs, etc) are not seen in the perspective of the bigger picture and major challenges ahead. As a consequence, behaviour and thinking do not change (and often savings are diminished by rebound effects).

A better approach, I think, would be to design campaigns that focus on food education and engage people in behaviour that minimises food waste (which will be collected in the food-waste-ATMs). A designer’s starting point would be to analyse the type of food waste, eating habits, demographic, and so on in order to understand and treat the root of the problem rather than to create innovations that deal its effect – the food waste.

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Education for Sustainability

MM — Sat, 03 Sep 2011 20:33:27 +0000

It is not difficult to argue that education is vital in sustainability. From individuals’ behaviour choices to business decisions to government policy, lack of understanding or grasp of the complexity of the bigger picture has demonstrated its shortcomings. An ambition to innovate practical solutions that drive sustainability thinking into core business strategy would often start with education (and empowerment, and engagement).

A long late-summer-night discussion with a dear friend of mine, who has completed a two-year graduate programme in one of the top five US business schools, made me think about another aspect of education for sustainability:

What type of education is needed or suited for solving sustainability issues?

Actually, “solving” might be a wrong word choice as it comes from the same mindset of general and business education, focused on splitting knowledge into disciplines. Conventional business education works with the model of combining rigorous expertise in one or several areas that would ultimately provide the right answer, the solution to the problem. This approach would probably work well for improving the energy efficiency of production unit or increasing the recycling rate of a plant.

However, the fundamental challenges that we are facing would require more than stitching together expert knowledge from different subjects using cutting-edge models. (One of the reasons why Einstein is over-quoted with his “You cannot solve a problem with the same mind that created it”). I think we need to disrupt the business education that depletes the creative and cognitive capital into narrow highly specialised areas. Instead of constantly working in a fast-forward mode, focused on growth solutions, business leaders need to learn to pause, step back and reflect. They need to be able to immerse in the reality of not-knowing, where the key is not finding the right answer or solution but rather to participate in a knowledge network of inquiry.

Action research easily comes to mind. I am not sure what a symbiosis of MBA with action research would be. Whether the linear business models would bend in the cycles of action and reflection, or whether learning by doing would suffice the bolstered business ambition. I am eagerly awaiting for a new tome on action research with reflections from the MSc in Responsibility & Business Practice at the University of Bath. It would be interesting to find more about their experience.

I would really like to see more education programmes that enable thinking in wide and interconnected ways…

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Honey Laundering

MM — Thu, 18 Aug 2011 20:51:08 +0000

Grist picked up a story today from the Food Safety News about an investigation showing that a third or more of all the honey consumed in the US is likely to have been smuggled in from China and may be tainted with illegal antibiotics and heavy metals. The disturbing article is about elaborate criminal schemes in which cheap, artificial, diluted or even contaminated honey from China is brought into the US after it has been laundered in another country (often Malaysia, Thailand, India, Australia, Indonesia) to disguise its origin and evade tariffs and health inspections.

What was really striking to me is that this is not news – it has been going on for almost ten years (just search online for “honey laundering”). It is not news to FDA either – they have even indicted about a dozen chief executives for honey smuggling. One of the earlier great investigations is done by Jessica Leeder for The Globe and Mail.

The issue is really sticky and I recommend reading one or two of the articles.

The important question is what are the implications for out global food system. Do we just need to ditch BigBrickGrocery and head to the local organic farmer’s market? For honey, it might be easy (although, the US might need to cut their consumption, as currently about half is imported). But could we ALL (7 billion) go to the local organic farmer for rice, potatoes, meat, fruits, vegetables? And why would we trust one grocery store but not the other? Does organic/local equal trustworthy?

I think we need a better understanding and transparency of the global supply chain. Businesses need to step up and show responsibility. Maybe link authenticity with quality competition between brands and products?

And do we even have 2 kg plastic jugs with “Pure Clover Honey” (great value of under $8 in Walmart)?

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