"The error in the system were the profit targets".

Bonus payments for financial jugglers are the main cause of the crisis, says Christian Homburg, President of the Mannheim Business School. In an interview with online blogs, he tells where the economic elite must rethink.

 

blogs ONLINE: Professor Homburg, Managers are trained wrong today?

Christian Homburg: no. We should recall that the excesses and misconduct, the issue underlying their cause, especially in a relatively small area: the investment banking. So now managers and their training in general in question is inappropriate.

PERSONAL

Mannheim Business School

Professor Christian Homburg, 47, has since December 2006 President of the Mannheim Business School of Management Training at the University of Mannheim, in the field of economy in most rankings, performing well. In the world of the American Marketing Association Homburg occupied in the past year in third place for its publishing activities. His textbook "Marketing Management" was recently published in English. Despite his academic career Homburg is also in the economy continue to work actively, as wissenschafllicher Business Advisory Council for the "Professor Homburg & Partner."

blogs ONLINE: Renditehatz and Quartalswahn there are also outside of the bank towers. Not infrequently at the expense of employees. Teach your students not to say that sustainable management is essential for business and society?

Homburg: Ethical issues and social responsibility are integral components of education at the Mannheim Business School: Intercultural competence or projects that the students with moral values associate, are essential. This is not window dressing. It is part of the grading.

blogs ONLINE: It seems that one or other of these lessons overslept.

Homburg: I can understand that in such a situation by looking guilty. But when we speak of the crisis, then the core in the massive failure of the control and incentive mechanisms in the companies. The error in the system were the short-term and purely monetary profit goals. The employees behave in accordance with such guidelines, training or not. Therefore, there is also the approach for the future.

blogs ONLINE: You mean the remuneration systems.

Homburg: Also das When young manager is a multiple of their base salary to be able to earn bonuses, then it is no wonder that they try to profit in a short time to maximize.

blogs ONLINE: The instruments of manager training set in spite of the misconduct of the elites is not in question?

Homburg: There are many instruments that are still valid. In the marketing of such products is in large extent. There is nothing that the crisis would suddenly untrue.

blogs ONLINE: Is not it also the task of forging squad, the correct values in the right minds to bring?

Homburg: We're doing that. But a school does not act in a vacuum, it is embedded in a social environment.

blogs ONLINE: If the cultural dowry is so strong, it means that, ethical behavior and sustainable economies only work if it can convert in return?

Homburg: We must as a society to ask where we hinwollen. Moral values, you can not convert into profits, at least not in the narrow economic sense. But sizes, such as customer and employee satisfaction are measured. They guarantee a long-term shareholder value. That study, for example, our students. The only short-term profit maximization strategies are full steam against the wall. You have just now no shareholder value is produced.

blogs ONLINE: Is there nothing more than helpless calls to altruism? A kind of straitjacket, the boards to bring about sustainable?

Homburg: constraints are not effective. But you can evaluate customer satisfaction and systematically into a remuneration system. This promotes the rethinking. We practice at the Mannheim Business School for a long time. And it works. It prevents an exaggerated cost thinking and promotes a sustainable quality orientation.

blogs ONLINE: The Mannheim Business School is in the Financial Times ranking of Executive MBA at the Platz 25 worldwide and was ranked 7 in Europe.

Homburg: We are proud of what we have achieved a short time.

blogs ONLINE: At the top are still always the same name. As set in stone. Usually it is the Anglo-Saxon institutions.

Homburg: After all, most of these institutions have an advantage of several decades. It is also at the way the rankings come. Often is the latest salary of graduates is a major criterion. In contrast to other institutions interested in us only an insignificant part of the students for investment banking. Therefore, the smaller income. It is conceivable that the somewhat corrected in the future.

blogs ONLINE: The Mannheim Business School is based on distance to investment banking?

Homburg: No, we simply have a different approach: classical general management programs. We train managers for all industries and business sizes.

blogs ONLINE: The problem is similar but even managers in other industries are currently under attack: Streamlined, customized, one-dimensional computing machines - these are still the nicest accusations. How to shape your character stronger heads, which are in demand today?

Homburg: We select in the interview very much. About the only personal career ladder in sight, has bad cards.

blogs ONLINE: Why?

Homburg: Because we are looking for individuals who consider themselves wish to develop leadership, openness to new ideas and entrepreneurial thinking to bring. Innovation is a central element of our approach. An example from our Executive MBA is the so-called "Entrepreneurial Project". Here, students develop a concept in small groups from the market to produce a detailed business plan. This is already undertaking major projects or in companies.

blogs ONLINE: You are the face of the Mannheim Business School. In two years you want to make the rod go further than President. What are the challenges for managers in training this time?

Homburg: We have come a long way. We have every year 270 outstanding students and the number 2009, will rise again. Now we will continue to develop programs aimed at specific needs of individual companies or industries are. We are also the first time this year, several management courses. This will allow us to Vollanbieter in management training.