What They Teach You at Harvard Business School

Introduction

What They Teach You at Harvard Business School offers an intimate and insightful glimpse into the inner workings of one of the globe's most esteemed business institutions, delving into its curriculum, ethos, and profound influence on the lives of its students. Through a narrative enriched with case studies, mathematical rigor, and unsolicited pearls of wisdom, it chronicles the remarkable journey of an unlikely student as they navigate the pursuit of the coveted MBA, unraveling both the merits and limitations of the HBS educational experience.

Ever pondered the experience of studying at a world-renowned business school? Journalist Philip Delves Broughton embarked on his MBA at Harvard Business School in 2004 with little foresight into what awaited him. Over two transformative years, he submerged himself in a dynamic, high-stakes milieu that both tested and inspired him.

This audiobook meticulously explores Broughton's odyssey within the Harvard MBA program, laying bare the crucible in which future business titans are forged. From the crucible of intense case studies to the labyrinth of challenging accounting principles, from seemingly whimsical exercises to the crucible of cutthroat competition, listeners are invited to gain a fresh perspective on the essence of achieving mastery in the realm of business.

Chapter 1: The Foundations of Business

Upon applying for his MBA at Harvard, Philip Delves Broughton, then residing in Paris with his family and working as a correspondent for The Daily Telegraph, found himself venturing into the world of business, a realm that had never been his primary passion. However, the allure of the prestigious Harvard Business School (HBS) proved irresistible, driven by the school's commitment to imparting leadership, passion, and a "moral compass" to its students, as proclaimed on its website.

Accepted into the program, Broughton discovered a secluded and elite campus, distinct from the rest of Harvard, akin to a luxurious resort—an environment often referred to as the "HBS bubble." In the initial months, he familiarized himself with the diverse subjects comprising the HBS curriculum. The first year covered a range of topics, including finance, marketing, and operations, while the second year allowed students to tailor their focus through elective courses.

HBS's instructional approach primarily centered on case studies. In Broughton's accounting class, for instance, students were tasked with unraveling the complexities of a feudal landlord determining the success of his peasant farmers, illustrating the challenge of discerning economic truths. Despite lacking any prior business experience, Broughton, driven by the prospect of exploring uncharted territories, joined a study group composed of students with diverse backgrounds to tackle these case studies.

In marketing, they scrutinized Black & Decker's decline and the controversial DeWalt tool line, emphasizing the importance of understanding customer needs. The finance class dissected the financial challenges of Butler Lumber, revealing the pitfalls of mismanaging cash flow—mistakes Broughton recognized from his own undergraduate days.

The accounting class aimed to pursue "economic truth," guided by the mantra assets = liabilities + equity. Technology and Operations Management focused on dissecting Benihana's innovative restaurant model. Immersed in detailed case studies, Broughton gained confidence, though he observed a phenomenon among HBS students dubbed "Beginnihana," signifying an overconfidence syndrome by semester's end.

Despite being informed that they should anticipate around 60 hours of work per week, Broughton found that preparing case studies consumed more time than expected. However, as he invested more time, nebulous business terms and concepts gradually became clearer.

A pivotal lesson for Broughton was grasping the significance of risk in the business landscape. He recognized that, in business, risk extended beyond the fear of negative outcomes to encompass the risk of missed opportunities. Advanced MBA students measured everything in terms of opportunity cost—the risk of forgoing potentially positive outcomes. Moreover, Broughton discovered that assessing risk was inherently challenging, often more art than science. In disciplines like accounting, ambiguous rules and biased interpretations obscured economic truths, with companies frequently engaging in the "numbers game" to present a more favorable financial picture than reality.

Chapter 2: Entrepreneurial Insights

As the second year unfolded, the elective curriculum took center stage, introducing a computerized course registration system that sparked strategic debates on how to prioritize class preferences. Fortunately, Philip Delves Broughton found himself fortunate, securing enrollment in most of his desired courses.

In the strategy class, Professor Felix Oberholzer-Gee underscored the importance of companies relying on competitive advantage rather than just operational efficiency. Building robust contracts with suppliers emerged as a crucial factor, challenging the conventional notion that outright ownership was always beneficial.

Negotiation classes introduced Broughton to fundamental concepts like BATNA (Best Alternative to a Negotiated Agreement) and ZOPA (Zone of Possible Agreement). The three archetypes of negotiators—poker players, idealists, and pragmatists—became integral to his understanding of effective negotiation strategies.

Among his favorite courses were entrepreneurial marketing and dynamic markets. The latter delved into the intricacies of arbitrage and risk valuation in trading stocks and derivatives, prompting Broughton to apply these concepts to his personal life, recognizing even a minimal 0.01% risk could lead to substantial consequences.

In the entrepreneurial marketing course, the relentless pursuit of customers and partners took center stage, inspiring Broughton and his friend Bo to venture into entrepreneurship. Their podcast company, conceived during the digital media boom, faced the stark reality that implementation trumped ideas. Despite initial excitement, their startup failed to gain competitiveness, teaching them valuable lessons about the challenges of entrepreneurship.

As Broughton navigated the MBA journey, concerns about the values and ethics instilled by HBS began to surface. Ethical debates within his cohort questioned the moral dimensions of business practices, especially in fields like private equity and hedge funds, where substantial financial rewards were juxtaposed with potential societal costs.

Observing questionable behavior among peers, such as buying BMWs to manipulate financial aid, heightened Broughton's scrutiny of the ethical foundation imparted by HBS. Despite achieving good grades, he grappled with the conventional path of corporate employment and questioned whether he could forge a business path aligned with his principles.

The job hunt post-graduation proved challenging, with Broughton realizing the demand for consulting and banking experience, which he lacked. The disconnect between companies' expectations of unlimited passion, devotion, and loyalty appeared cult-like and further fueled his pursuit of an alternative path.

Facing rejections and feeling like he had squandered his MBA, Broughton reflected on the pressure to become a profit-focused individual, as advocated by HBS. The prevalence of classmates entering the consulting and banking sectors worldwide made him ponder the true meaning of success and fulfillment. Graduation prompted a profound question: "How much is enough?"

A graduation speaker urged a focus on personal growth rather than conforming to predefined career trajectories. Broughton resolved not to succumb to unfulfilling work and opted to prioritize his writing and family, using his MBA on his own terms.

In the aftermath of the financial crisis, which saw HBS alumni in leadership positions contributing to economic turmoil, Broughton reflected on the value of his education. While satisfied with his personal growth, he couldn't help but question the broader impact of HBS leadership on the world.

Summary

Journalist Philip Delves Broughton delved into the inner workings of the esteemed Harvard MBA program in 2004, seeking to gain a comprehensive understanding of the world. However, what awaited him within the confines of the Harvard Business School (HBS) was a high-pressure environment characterized by intense competition and pervasive insecurity, even among accomplished students.

Immersed in the "HBS bubble," Broughton witnessed the shaping of future consultants, bankers, and corporate leaders through a crucible of case studies, rigorous networking, and cutthroat competition. The relentless pursuit of status and wealth within this environment left Broughton disillusioned, prompting him to question whether HBS was instilling the values necessary for effective leadership in the contemporary world.

Ultimately, Broughton opted to carve his own path, navigating a balance between professional ambitions and personal fulfillment, as he questioned the prevailing ethos of HBS and its implications for the leaders it produced.

About the author

Philip Delves Broughton's diverse background is marked by a birth in Bangladesh, upbringing in the UK, and a career that has seen him reside in prominent cities across Europe and America. With a foundation established through his education at Oxford, he embarked on a successful career as a newspaper reporter and writer, dedicating over a decade to covering global events for the Daily Telegraph.

Adding another dimension to his professional journey, Broughton pursued and earned his MBA from Harvard Business School, a pivotal moment that propelled him into roles at distinguished institutions and organizations. He has contributed his skills and expertise to notable entities such as Apple, the Kauffman Foundation, the Financial Times, and the American Academy in Rome, underscoring the breadth and depth of his professional impact.