Critical Chain - Eliyahu M. Goldratt [21]
"I think that at the gathering in Washington we didn't analyze the problem correctly. It's much worse than we suspected," B.J. categorically states.
Regarding B.J. as one of the most forward thinkers in his profession, her last sentence really worries him. Anxiously he waits for her to explain.
"We were concerned about a potential, gradual decline in enrollments at our business schools," B.J. starts her explanation from the very beginning. "In Washington, we said that it was because the business schools' capacity grew, and continued to grow, beyond the market need for MBAs."
"We also said it might be that the word is out that an MBA degree doesn't guarantee a lucrative job anymore," Bernard adds.
"Correct. And since then I've conducted a large survey that verifies it."
"Can I have a copy?"
"Certainly. But Bernard, I'm afraid that we had a conceptual mistake in our explanation. Consciously, or subconsciously, we were extrapolating from the drop that happened in registrations to the law schools. The symptoms are the same, but I'm afraid that the causes are vastly different."
She pauses before she continues. "In law schools they are going through the normal adjustment between demand and supply. Their problem is that they over-supplied the market needs."
"Over-supply is an understatement. Who needs so many lawyers?"
She ignores his remark. "That is not the case for business. We are not even coming close to supplying the market needs. Oversupply cannot possibly be the cause."
"How do you know?"
"Everybody knows that there is a big shortfall of qualified managers. Couldn't you use some in your organization?"
"If I could get rid of some of my inept buffoons, I definitely could."
She smiles. "Oh, Bernie, it's so good to be with you."
"I will not say ‘same here' until you tell me the answer."
"The answer for what?"
"If we aren't over-supplying the market demand, why have we started seeing the same symptoms?"
B.J. becomes tense again. "I didn't say that we aren't oversupplying the market demand, I said that we are not even close to supplying the markets' needs."
"Have mercy on me, stop talking in riddles, I'm just a simple university president," Bernard jokingly begs.
"Bernie, when are we going to open our eyes?" she quietly says.
"Please open them for me," he requests sarcastically.
B.J. doesn't respond. She feels sad. It's so obvious, it's written on all the walls, it hit them in the face, but even Bernie doesn't want to face the obvious. Why impose it on him.
He strokes her hand. "Please." His voice contains only genuine interest. Well, it took her a very long time to face it, too.
In a lifeless tone she starts to explain. "What law students get in law schools is not just a piece of paper but essential knowledge. Do you know of a single person who thinks that one can become a good lawyer without studying?"
"I know people for whom the only good lawyer is a dead one," he tries to cheer her up. "But I see what you mean. Almost nobody will claim that you can't become a good manager without first having an MBA. You and I don't have MBAs and we manage large organizations."
"In the last few weeks I've used every opportunity to check the opinion of managers about the validity of our teaching. Bernie, it's horrible. There is widespread awareness that it's basically useless."
"Aren't you exaggerating?"
At any other time such a comment would trigger some harsh response from B.J. Any other time Bernard would not think of making such a comment.
"Some managers told me that they are disillusioned to the extent that they are no longer looking for young, bright MBAs. Others told me that they even discourage their people from registering for an MBA program."
Bernard had sufficient time to relate her message to his experience. It matched. Slowly, he says, "What you are claiming is that we are building