Spring
1996
INTERVIEW
Jeffrey Garten: The New Vision for SOM
THE NEW DEAN OF SOM
DISCUSSES THE IMPORTANCE OF EDUCATION IN THE GLOBAL ECONOMY
written by Alex Williamson
interviewed by Andrew Hayek and Alex Williamson
Yale's School of Management (SOM) ushers in a new era with the appointment of Jeffrey Garten as Dean. YIF gained valuable insights into Garten's philosophy at a recent press conference, at which Garten articulated his objectives and future plans for SOM.
Substantive economic and foreign policy experience paved Garten's road to SOM. Immediately preceding his arrival at Yale, Garten worked for two years as the Clinton's Administration's Undersecretary of Commerce. As Undersecretary, his focus on constructing a commercial policy to help American businesses gain access to emerging markets. Garten contributed significantly to resolving the 1994 auto trade dispute with Japan. Prior to working for the Clinton Administration, Garten served in the State Department during the Nixon, Ford, and Carter administrations, when he worked on international economic issues. Garten's work has earned him a reputation as a trade warrior who has dedicated his career to opening markets and constructing a new international economic order.
Competition is central to Garten's interpretation of America's international economic position. "I see the world as being brutally competitive. I watch Asian countries outspend us in terms of research and development. I see the emphasis that other countries are putting on education and training, and I have great concerns about the United States staying in the lead," he commented.
The new SOM dean firmly believes that education is America's principal tool in navigating this new economic order. According to Garten, human capital has become the new economic battleground in which nations will clash. Educating the managers of tomorrow is a critical part of educating the entire work force. Reflecting his belief in the important role of education in a global economy, Garten explained that academic institutions, such as Yale, must expose students to the dynamics of this new global economic order. "If American companies want a competitive workforce, they're going to have to invest in them and there's going to be an increasing amount of need for companies to think through how they're going to target the skills they need." His aim, therefore, is to prepare SOM students for the emerging international economic order.
| To implement these ideas at SOM, Dean Garten is planning to strike a balance between teaching and research; to improve recruitment; and to establish a whole series of relationships with the students, alumni, and faculty. SOM will also undergo significant restructuring. Garten foresees an expansion of SOM, into such areas as international trade and finance. SOM will also undergo cuts and additions. While the exact nature of cuts and additions is not yet certain, programs in international business, cultural sensitivity, and innovative management will be reinforced in addition to the school's tradition strengths. | Garten's work has earned him a reputation as a trade warrior. |
Garten expounded on several issues concerning effective management in a global economy.
Garten on Education
"I think that one of the things that is very important is that students learn to think about the international context and not just the national ones."
"Recently, we've awakened to the fact that everyone else can produce pretty much what we can. And I think that we have a level of arrogance about our capabilities that is not warranted and so understanding competitive risks is a very big part."
Garten on Public Service
"The people who will lead the US into the next century will have to have a sense not only of business, but also of public service."
"The entrepreneurial managers of tomorrow are going tot think much more broadly about society's problems than the business leaders of the last couple of decades."
Garten on Asian Political Culture
"Cultural sensitivity is not just a question of learning about it, but actually experiencing it. My experience is that American businesses have been doing business in Asia for almost a century, yet they are notorious for not understanding Asian cultures. Our government is the same way.
"In Pennsylvania, you don't have a political risk. The government may change, but it's not going to change the investment line very much. If there's a change of government in Indonesia, there would be very dramatic difference."
