Business School Deans Confess Their ‘Favorite’ Mistakes

Feel stuck and need a change? Dream of devising the plans instead of carrying them out? Need to step away to take risks and seize control of your career? For many, business school is the answer to these questions. It’s respectable and responsible break to find a path. And it’s just what people do, right?

That’s what Sally Blount thought, too. The dean of Northwestern University’s Kellogg School of Management, Blount was following the traditional plan in 1985. After a two-year stint at the Boston Consulting Group, Blount was dashing off to business school. “All my peers were heading to graduate school,” she tells Poets&Quants. “It was clearly the next logical step.”

Just one hitch: Blount’s heart wasn’t in it.

UNLIKELY DIRECTION PREPARES BLOUNT TO BECOME KELLOGG DEAN

Instead of taking the safe and conventional route, Blount forfeited her coveted spot in business school, taking a job as the business manager for a small architecture and design boutique. Her loved ones may have called her decision a mistake, but Blount begs to differ. “I ended up loving it —the product, the people, the clients. I learned so much about design and design thinking. Plus, I learned how to run a small business – everything from pricing, project management, hiring and firing to collections. Her three-year sojourn also came with a silver lining. “When I was finally ready for graduate school and chose Kellogg, I did so with excitement,” she adds.

Kellogg Dean Sally Blount

It was a career-making decision for Blount, who went on to earn her Ph.D. in organizational behavior at Kellogg. Later on, as dean of New York University’s Stern School of Business, she put her building background to work. She oversaw the Stern Concourse Project, which “reinvented” 84,500 square feet of existing space in three buildings. That was child’s play. Blount followed that up with even more ambitious building project: the 415,000 square foot Global Hub at Kellogg, a $250,000 million dollar project that was built from scratch. “Kellogg’s new Global Hub is such a beautiful and functional space, and it came in on time and on budget,” she beams. “I don’t know if I could have delivered it as effectively, if I hadn’t spent those early years at the architecture firm. But boy was that a non-obvious choice at the time.”

In retrospect, Blount’s leap of faith could hardly be considered a mistake. That’s not to say every judgment call will turn out as well. For every celebrated risk, there is a regrettable miscalculation. It may be an edgy pitch that costs the big account; a rounding error that skews the financials; a prediction that materializes too late; or even a taboo comment that leads to a “Come to Jesus” moment with the boss.

CLOWING AROUND GOES AWRY FOR ONE DEAN

Jay Hartzell, the dean of the University of Texas’ McCombs School of Business, experienced just that in his first job after college. At the time, a recruit was weighing whether to join his consulting firm or becoming a professional golfer. Channeling their inner Beavis and Butthead, Hartzell and a co-worker would make golf jokes at the expense of their employer in the office. Sure enough, Hartzell’s boss caught wind of their antics and sat them down. “I learned that what we viewed as good-natured fun could affect the morale of those around us,” he shares. “I was mortified initially, but that conversation had a lasting impact on me. I became more aware of divergent points of view, as others took what we said much more seriously than I did.”

That was especially true when top MBA deans served in leadership roles. Wharton’s Geoffrey Garrett nearly sparked a mutiny among his ranks during budget cuts. Washington University’s Mark Taylor became “too emotionally attached” to his projects and couldn’t waive the white flag —even in the face of failure. Long before he became dean at Vanderbilt’s Owen Graduate School of Management, M. Eric Johnson designed sales compensation plans…learning the value of simplicity the hard way. Some deans came away with life-changing lessons long before they entered the workforce too. Just ask Emory’s Erika James, whose rite of passage came when she refused to dress up as a bug when she was 13.

Of course, some mistakes came at the most inopportune — even public — moments. Take the University of Minnesota’s Sri Zaheer, who learned to always bring written remarks after she froze up during her introductory speech as the dean. It could be worse. Just ask the University of Toronto’s Tiff Macklem, who spent months researching how the Canadian government could respond to the 2008 Financial Crisis…only to learn his branch lacked the authority to take his prescribed actions. Then again, Macklem probably wouldn’t switch spots with Stanford’s Jonathan Levin. His efforts helped a client save a billion dollars…even if he forgot to do the one thing that cub sales know is paramount.

Recently, Poets&Quants posed this question to the top leaders of the MBA world: “What was your favorite mistake in your career?” From avoiding giving bad news to dismissing style in the face of substance, here are the career errors that resonate with MBA deans even today.

Tiff Macklem, dean of the Rotman School of Management

“Favorited” is a funny word, but my most frightening mistake was during the 2008-2009 Global Financial Crisis (GFC). At the time, I was Canada’s G7 and G20 Finance Deputy with responsibilities for domestic financial stability as well as international coordination. This gave me a front row seat to the unfolding crisis. As the crisis became more ominous with the near failure of Bear Sterns, we began developing a series of contingency plans in Canada in the event of a larger calamity. I formed a crack team of finance experts at the Treasury and tasked them with developing a series government interventions that could be used by the government should the crisis deepen and market failures spread. After a couple of months of intense work, I sent the package to justice lawyers for review. They came back with the message that the Minister of Finance did not have the authorities to do most of these interventions. I turned white.

I had made a costly mistake by not involving legislative legal experts in the team from the start. I had squandered valuable time. Fortunately, we caught up and by September 2008 when Lehman failed and the crisis went viral. We had a series of executable contingency plans ready to go (as well as a clear understanding of the new authorities the Minister might need). I never forgot the lessons –make sure you have all the critical skills on the team. And ability to execute is critical to design.”
– Tiff Macklem, University of Toronto (Rotman)

Erika James, dean of Emory University’s Goizueta School of Business

“Actually, I can trace my leadership career to middle school. I was student body president leading a project to encourage students to improve their grades. We called it the “BUG” project for “bring up grades.” At the launch, we decided to dress up as bugs but I was too embarrassed and came in my normal attire. My advisor was angry, saying ‘How do you expect anyone to follow you as a leader if you’re not willing to do what you asked them to do?’ That lesson has stuck with me since I was 13 years old.”
– Erika James, Emory University (Goizueta)

Go to next page to hear the favorite mistakes of business school deans from Stanford, Georgetown, Duke, Rice, Texas, Minnesota, and the University of North Carolina.

Jonathan Levin, Dean of Stanford’s Graduate School of Business

“One mistake that stands out is a rookie business mishap. Right after I received tenure, I took my first consulting job – along with a few Stanford colleagues – advising a group of cable companies on how to bid in an auction for radio spectrum. The companies performed spectacularly well, and the bidding strategy saved them around a billion dollars. Our mistake? We hadn’t negotiated any compensation based on performance. (However, we did get to write an academic paper about what we learned in the auction!).”
– Jonathan Levin, Stanford GSB

Rohan Williamson

“Trained as an engineer, I used to think the answer was all that mattered and did not think about how things were presented. At the Chrysler Corporation, I worked for a guy who first looked at the appearance of what was turned in, then at the information. I would just give him the answer – I thought making it look good was a waste of time. But down to the placement of staples in a document – they had to be vertical, not diagonal or horizontal – we had to make sure things were correct, or he would just hand it back to us.

He taught me that presentation matters. Attention to detail is important. The interesting thing is that it has stuck with me – I’ve become that guy. He made me think more about the customer or other end-user of my information.”
– Rohan Williamson, Georgetown University (McDonough), Interim

Rice Dean Peter Rodriguez

“As a young loan officer in a bank, I was often the first screen with new customers. There was a time when my boss said to take care of someone because he thought they were a good friend of the bank but may have trouble getting funding. It was my first one-on-one loan opportunity, so I spent a lot of time with the customer and tried to be a good advocate to get some funding. From the beginning, my gut instinct told me this was a long shot and wasn’t going to work out. And I was right, but I didn’t follow it.

The whole experience ended up being really disappointing for this person. I really upset him and I had a lot of explaining to do. I learned many lessons from this. One, that we have a powerful urge to avoid difficult conversations. Often they’re the right thing for everybody and you have to face them head on even though it’s hard. Two, I should’ve trusted my instincts a little bit more, at least gone with honesty in the lead. I was never really authentic with him. I failed and wasted both our time.”
– Peter Rodriguez, Rice University (Jones)

Dean William Boulding of Duke University’s Fuqua School of Business

“Mistakes are learning and growth opportunities and I’ve had many during my career. Early in my career I learned not to be blind to the advice or insights of others. I thought I had my life path figured out and it certainly didn’t involve a career in academia! I was at Wharton earning my MBA and had no intention of pursuing a PhD. Luckily, I had professors who saw me as a strong PhD candidate. Wharton made me an offer I couldn’t refuse: It would pay for my degree if I tried a PhD. If I decided not to pursue the PhD, my MBA would still be funded. Who could turn that down?

Long story short – I loved the research and teaching activities that came with a career in academia and ultimately felt it was my life’s calling to pursue that direction. I’m so grateful my professors were able to spot what I hadn’t yet identified about myself. I’ve loved every step of my journey that started at Wharton and took me to Duke, from the research, to teaching to serving as a dean. I feel lucky to get to work with so many colleagues who push me to think in new directions and to continually be inspired by students who are seeking to not only do well for their companies, but to do good in the world. It’s amazingly gratifying.

I learned another lesson when I became dean that has really shaped me in recent years. As a new dean, I was trying to do everything and consequently probably did nothing well. A conversation with Apple CEO Tim Cook (who I had the pleasure of teaching when he earned his MBA at Duke) helped me put things in perspective. Tim said to me, “You’re trying to do too much. You should have three things that you’re focused on, at most four.” It’s not complicated advice, but at that moment it helped me see and define my role more clearly and refocus. I now plan my days around my three or four priorities and then build in dedicated time to deal with less urgent matters. I also try to share this advice with others often (see this post on LinkedIn.)  It’s simple advice that can make a big difference in our effectiveness (and sanity) as the world continues to move at a faster and faster pace.”
– William Boulding, Duke University (Fuqua)

Jay Hartzell, University of Texas (McCombs)

“In my first job after college, I recall what was probably the sternest rebuke of my career (to date, at least – knock on wood).  We were recruiting somebody who was weighing the choice of joining our consulting firm versus joining the professional golf tour. A friend and I thought this was quite funny – after all, who wouldn’t want to be a professional golfer? So, we made some jokes around the office (but, not in front of the candidate) at the expense of our jobs relative to a life on the golf course.

A partner set up individual meetings and called us on our behavior, citing the impact that our personalities and comments could have on our colleagues. I learned that what we viewed as good-natured fun could affect the morale of those around us. I was mortified initially, but that conversation had a lasting impact on me. I became more aware of divergent points of view, as others took what we said much more seriously than I did. I also realized that I needed to think carefully about how what I say might be received before I speak and that the amalgam of many diverse personalities and points of view that make up an organization’s culture must be taken seriously. The irony of my joking around having serious implications on others and on my future perspective was, and is, not lost on me.”
– Jay Hartzell, University of Texas (McCombs)

Sri Zaheer, University of Minnesota (Carlson)

“A little more than five years ago, I had the opportunity of a lifetime to lead the institution that I love so much and that gave me so much. Following an international search, the University’s President and Provost selected me to become the next dean of the Carlson School.

A big event, being live-streamed internationally, was planned in our atrium with dignitaries and media, and no one knew who was being announced. I hadn’t known about it myself until just a couple of days before. I had prepared a speech in my head to deliver once I was announced — as being a professor, giving impromptu speeches is what one does. However, I didn’t realize just how emotional that moment would be, after being introduced and escorted to the podium by Goldy Gopher. Looking up from the atrium at all my faculty colleagues — some of whom had hired me over twenty years earlier as a rookie assistant professor — and seeing the hundreds of students lining the balconies, I was suddenly struck by the realization of the immense responsibility entrusted in me to lead and inspire them. I was completely overwhelmed, so much so that I just choked!  I couldn’t remember a thing I had planned to say — add that to my most embarrassing moments, and one that will live forever in Google caches. Lesson learned: I make sure I have a written copy of what I plan to say with me for any major speech, even if I don’t ever refer to it.”
– Sri Zaheer, University of Minnesota (Carlson)

Doug Shackelford, University of North Carolina (Kenan-Flagler)

“I’ve made plenty of mistakes, but I tend to deal with them and not look back. I think the biggest lesson I learned was when I met a hurdle as senior associate dean for academic affairs, which means I oversaw all of our programs and faculty. I participated in a leadership development program which helped me understand the difference between leading and managing – and which best suited me. As senior associate dean, I was mostly managing. I learned I was a successful manager, but had to work at it – and it drained me emotionally. It exhausted me. I’m not a micro-manager and getting into the weeds doesn’t appeal to me. But what I also learned is that leading energizes me and I am most effective in a leadership role. Helping others to succeed, setting a vision, innovating, improving – that’s all stimulating.”
– Doug Shackelford, University of North Carolina (Kenan-Flagler)

Go to next page to hear the favorite mistakes of business school deans from Wharton, Notre Dame, Michigan, U.C. Berkeley, University of Washington and Washington University.

New Wharton Dean Geoffrey Garrett

“I once had to make a significant (10%) budget cut as chief international officer for UCLA. The management mantra in my head was “do it strategically, don’t do it across the board.” I spent hours in my office alone coming up with a fancy algorithm that rewarded more successful programs with smaller cuts. It might have been a decent plan, but when I delivered it there was near mutiny. Why? I hadn’t talked with anyone affected in advance, to get their views, socialize my ideas, and generate buy in. I learned that when you think strategy, you have to think at least as much about implementation as formulation, and implementation is mostly about people.”
– Geoffrey Garrett, Wharton School

Dean Roger Huang, Notre Dame (Mendoza)

“As the dean of the Mendoza College of Business, I learned the hard way that, contrary to what Shakespeare might say, there is a lot in a name.

In 2013, we launched a new one-year master’s program for non-business majors – a pioneering program at the time among graduate degrees. I decided to call it the Notre Dame Master of Science in Business (MSB), despite the advice of my leadership team and others. They argued for Master of Science in Management (MSM), because they thought the name made more sense. But I was stubborn. I wanted to “save” MSM for another potential degree in the future. We launched the program as MSB.

Later on, as other schools began launching similar programs under the nomenclature MSM, I got a call from a journalist who said, “Are you sure you want to keep the name, MSB? Because everyone else is calling it MSM.” It finally sunk in that sometimes there is a good reason to choose the obvious path. If prospective students and the b-school industry in general were increasingly familiar with a certain name for the degree, why persist in going a different direction? It only created confusion. For the second cohort, the program name was changed to the Master of Science in Management. And now the first cohort holds the distinction of being the one and only class of Notre Dame MSB graduates.”
– Roger Huang, Notre Dame University (Mendoza)

Dean Scott DeRue, University of Michigan (Ross)

“My favorite mistake in my career is one from which I learned a great deal. We were launching a new product, and my CEO, among other senior leaders, was determined it would be a success. Yet, the market data we had collected suggested the new product would face significant challenges in the market. I did not speak up when I knew that I should, and others on the team who shared these concerns also did not speak up. In hindsight, this experience taught me not only to have the courage to speak up, but it taught me about the importance of building a culture where people – no matter their position in the organization—can voice concerns, debate ideas, and speak up in service of making the best decision possible.”
– Scott DeRue, University of Michigan (Ross)

Dean Richard Lyons of UC-Berkeley’s Haas School of Business

“Early in my career I took a job that seemed close to what I’d done before and loved, but soon realized was very wrong for me.

For background, in high school I worked summers for a small-scale general contractor who did lots of remodeling jobs and additions. I loved the work. I learned how to use the tools, worked with wood, and got a great sense of completion from tasks. I liked it so much that in college I started my own business building redwood hot tubs, focusing on the parts of construction that I loved most: cutting and building the tubs myself, designing and building the decks around the tubs, and, of course, being out in the California sun all summer.

When I graduated from college I felt I needed a real job and went to work for a large-scale general contractor. I worked in an office all day focused on tasks such as estimating costs from construction drawings. I thought what I liked was “construction,” but in fact what I thrived on was building things, running my own business, and having tons of autonomy. Getting clarity on what you really love is so important, and is often aided by big mistakes.”
– Rich Lyons, University of California-Berkeley (Haas)

M. Eric Johnson, Vanderbilt University (Owen)

“I studied engineering and economics in college and loved charting the sales process, so I went to work designing a new bonus and incentive system. Striving to eliminate “sand bagging,” I developed a complex formula that I thought would keep sales representatives from saving orders for the next day.  On paper, it looked great, but the sales team couldn’t understand it and quickly concluded this young rocket-science manager was trying to trick them. Sales plummeted. The president pulled me into his office and gave me a pep talk. He pointed out that my incentive system was a lovely theory, but he gave me a D for implementation and results. It stung but helped me learn that metrics and incentives must be easy to understand.”
– M. Eric Johnson, Vanderbilt University (Owen)

Dean Jim Jiambalvo, University of Washington (Foster)

“Early in my deanship, I wasn’t prepared to answer the question, “What’s the vision of the business school.”  In fact, I didn’t appreciate how important it is to have a clear, aspirational vision and communicate it over and over again.  By the end of the first year, I articulated the vision that we will be “the best public business school in the U.S.”  Best was defined in terms of “creating futures and transforming lives.”  The comparison to public business schools relates to our commitment to access and community engagement.  By the middle of the second year, virtually every faculty and staff member could repeat the vision.  It really clarified decisions.  For example, when we’d hire a faculty member we would ask ourselves, “Is this someone who’s going to help us be the best public business school or just tread water?”
– Jim Jiambalvo, University of Washington (Foster)

Mark Taylor, Washington University (Olin)

“I can think of instances, especially early in my career, where I was too emotionally attached to a pet project to admit that it was not performing according to expectations and that I needed to cut bait. The time, effort and imagination that goes in into launching something can easily cloud one’s judgment into thinking, “It can’t possibly fail and turnaround and success are just around the corner.” After this happened a couple of times – and I saw that prevarication only made matters worse – I realised that having projects fail is a normal element of business. In fact, if some projects don’t occasionally fail, it means that, as a leader, you are not taking enough controlled risks. The skill is in having more projects succeed than fail.”
– Mark P. Taylor, Washington University (Olin)

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