Faculty Diaries: Public Private Partnerships for Infrastructure development
By Veronica Vecchi, professor of Buisness Governmnt Relations, SDA Bocconi Director of Executive Education, MISB Bocconi Bocconi India The Indian Government has announced to build 100 motorways (21 projects for a capital value of INR 28,000 crore to be awarded this year) with the hybrid annuity PPP model, based on the sharing of costs between the private (60%) and the public sector (40%). The public sector will pay a further charge for the management and operations and the private concessionaire won’t bear the demand and the inflation risks. Infrastructure development is actually one of the main priorities of Governments across the world, as they are undoubtedly a catalyst for economic growth. However, the gap between needs and actual provision is still wide and it may affect the competitiveness of countries. Public Private Partnerships (PPPs), mainly based on concession agreements funded via project finance schemes, are attractive for many Governments as a way to fill the infrastructure gap, both in developed markets, where they have to control the headline measures of indebtedness and in emerging markets, where their ability to raise funds and implement projects is limited. Infrastructure gap worldwide PPP models based on a capital grant and availability charges (called in the domestic model annuity), have been used also abroad, especially after the financial crisis, to cope with the bankability issues and attract institutional investors (especially pension funds and insurance companies that are more risk adverse), looking for higher yields. Furthermore, the failure of many projects across the world, which forced the authorities to renegotiate the financial terms of the original contracts or to buy back the infrastructure, has determined a progressive shift towards availability based concessions, under which the traffic/demand risk is fully retained by the contracting authorities. However, when the public Authority retains partially or totally, directly or indirectly, the demand risk as a consequence of the guarantee issued (availability charge/annuity, capital grant, pure debt guarantee) bidders have strong incentives to bid with opportunism and not to manage and monitor efficiently the contract. According to a study developed with some colleagues in Bocconi, we found that whenever the level of dishonesty in the system is far high ( for example in countries with a high level of corruption, like India or Italy), the probability that a dishonest bidders win the tender is very high and therefore it is very likely that the private contractor would ask for a contract renegotiation, thus increasing the costs for the public sector and reducing the value for money of the PPP. PPP contract renegotiation is a already a plague here in India and the turn to PPP should be seen not only as a way to close the infrastructure gap but also as a stimulus to develop a more competitive and responsible private sector. It is obvious that certain risks can’t be transferred to the private sector, especially those that the private operators can’t manage. Therefore, the annuity model can be a good solution but only if it is supported by a deep investment in the public sector competencies in order to have public officials able to structure feasible, value for money and affordable PPPs and to assess the real quality and reliability of bids received. The figure below summarizes the main results of the study conducted by Bocconi and it shows the decrease in the probability of dishonest winners in case of an increase by 10% or 20% in the public sector competencies. An investment in skills will be certainly profitable for the public sector, the society and the economic development of India.
Faculty Diaries: Strategic Thinking and Analysis, So Powerful, Yet So Rare !
There is quite a lot of anecdotal evidence indicating that managers, even those with (shared) responsibility for managing a business area, spent very little of their time thinking strategically about the development challenges they are facing. We define strategy as a pattern of actions and decisions aimed at obtaining a specific objective. The strategy is NOT the goal, but the proposed steps to reach that goal. There is no guarantee for reaching the goal even if time is spent on strategy analysis, but the chances of succeeding increase. Individuals and organizations that spent time on strategy increase their chances of success for three reasons; Having a defined a goal and a strategy to reach it, decreases the risk of “ZigZaggingâ€. Without a medium to long term goal and objective organisations and individuals may work in one direction for one period, change their ideas and then work in another direction. ZigZagging often leads to wasting resources in the form of investments and time. In organisations, having clear and shared goals and strategies increase the chance of working TOGETHER towards these goals. Without sharing, there is the risk that some people and organizational units will work in one direction while others might take a different direction. This decrease the chance of making an impact. Strategy can work both as a coordination mechanism for units and as a type of heuristics system to combat bounded rationality on individual manager and employee level People are motivated by purpose. Knowing where we are going and why we are executing certain plans increase the chance that managers and the employee will commit. We normally associate 4 fundaments for good strategies and strategists: The Strategist need to have the ability to formulate clear and future-oriented goals and objectives The Strategist needs to have a profound understanding of the competitive environment The Strategist needs to be able to objectively appraise own (the company’s) resources and capabilities The strategy needs to be accompanied with effective implementation systems As most strategists are not “born†with all of the above, analysis normally play an important role in the strategy formulation process, wherefore we often refer to “strategy analysis†and “strategic management†to describe the activities associated with strategy formulation and planning. The teaching in the foundations of strategy course gravitates around a simple strategy formulation model and the analytical tools and models supporting each step of the process. This article is written by Prof. Mikkel Draebye in which he talks about why strategy is important and introduces the model which helps to formulate a strategy. The model is covered in Foundations of Strategy class in IEMB, International Executive Masters In Business which is an 18-month program for senior level executives in Mumbai.
Funding Your PGPB
Many aspiring business school students are held back by a major fear: the financial commitment. And it’s a valid concern. After all, b-school tuitions can be notoriously expensive. At MISB Bocconi which is an International Business School in Mumbai, we understand this dilemma and remain committed to helping you fund your goals while simultaneously driving a serious ROI for all of our grads. Let’s take a closer look at the topic of funding your PGPB. Funding Matters You may be surprised at just how many funding options exist aimed at helping PGPB students navigate costs associated with business school. From merit-based tuition waivers for candidates with exemplary profiles to Dean’s awards, a full range of scholarship programmes — some for as much as 80 percent of the cost of tuition! — are alive and well at MISB Bocconi. Additionally, we have partnerships with numerous financial institutions, including Axis, Credila and Avanse. Understanding the ins and outs of the financial aid process can be overwhelming, but our admissions office is at the ready to answer any questions you may have about tuition waivers, scholarships and loans. Here is the detailed document of various loan options: 1) Axis Bank 2)Credila 3) Avanse Factoring in ROI No discussion about the cost of our PGPB programme is complete without also weighing in ROI. Our students experience outstanding outcomes when it comes to reaching their professional goals, and we’re there with them every step of the way. Plentiful career development services comprising everything from our Personal Orientation Lab to mock interviews to in-company training sessions give students everything they need — and then some — to make the leap to successful, sought-after careers. Consider the placement statistics of our 2015 grads. Not only were 100 percent of our placement-seeking students employed within one short month of graduation, but with an average of 3.5 job openings per student, they clearly had their pick of positions. Need more ROI proof? How about a whopping 175 percent average increase over their pre-PGPB salaries among Class of 2015 graduates? Those concerned with whether the PGPB can truly impact their career trajectories, meanwhile, will enjoy knowing that 80 percent of recent grads changed country, industry, or function following completion of the PGPB. The takeaway? PGPB from one of the Top Business Schools in India like MISB Bocconi opens several doors. In today’s intensely competitive business landscape, you can’t put a price tag on that. We’re well aware that choosing to attend business school is a major life decision, and that for many prospective students, the cost of attending b-school is a significant factor. We remain committed to bringing together the best and brightest minds — regardless of financial considerations — and will continue to do our part to break down the financial obstacles separating deserving students from becoming part of the MISB Bocconi community.
The Bocconi Brand: What’s in a Name?
While a world-class education is the overriding imperative when it comes to the b-school selection process, one factor remains an essential part of the equation: reputation. Why? Because with so many MBA programs to choose from, a distinguished brand name attests to the quality of the degree — not just to prospective students, but also to employers seeking out the best and brightest talent. One name sure to stand out in any crowd? Bocconi. Let’s take a closer look at why adding the Bocconi name to your resume is a winning proposition. About University Bocconi University Bocconi, founded in 1902, was the first Italian university to grant a degree in economics. For a century, Bocconi has played a leading role in Italy’s social and economic modernization. It has remained true to its founding values of being a major research university, with democratic values and open to the world, as well as financially and politically independent. About SDA Bocconi SDA Bocconi is one of just five business schools to have received not one, not two, but three of the world’s most prestigious accreditations awarded by prominent global organisations. It’s not surprising, therefore, that this prestigious institution garners top spots on international rankings, including the title of Italy’s best business school, according to the Financial Times global roundup, along with top 10 rankings in Europe and top 25 global rankings. But it doesn’t end there. SDA Bocconi also consistently makes the grade at Forbes, The Economist, Bloomberg Businessweek, and QS Top MBA. The clear takeaway? SDA Bocconi’s reputation is more than good — it’s truly stellar. Brand Matters While discussions are abound regarding the ROI on business school, experts agree that the better the programme, the higher the ROI. With Bocconi, you don’t just get a business degree, you gain access to all of the advantages of a world-class business programme, along with the credibility and prestige that go along with it. Employers don’t just know the Bocconi name; they covet Bocconi graduates. Our extraordinary placements at both SDA Bocconi and MISB Bocconi speak for themselves. Enter MISB Bocconi For MBA candidates looking for all of the advantages of International Business Schools in India, the Bocconi name with direct and strategic sightlines of the rising Indian economy, MISB Bocconi is the true embodiment of best of both worlds. There’s no better seat in the house when it comes to advancing your knowledge of the business world than in the heart of Mumbai. Not only that, but there are plenty of opportunities for international immersion, as well, thanks to our celebrated exchange programmes. You won’t find the amalgam of these opportunities anywhere else: We are proud to have the honour of being the world’s only offshore presence of Bocconi. When you select MISB Bocconi, you’re not just choosing a business school, you’re choosing to become part of a community of innovators, big thinkers, and business leaders known all over the world. Can you think of a better way to build your personal brand than by becoming part of the Bocconi legacy? Download PGPB Brochure
Are You Ready to Give Your Career a Jumpstart?
This business landscape is changing at lightening-fast speeds, and along with those changes comes the need for executives with the abilities to navigate and lead. As with Bocconi’s other post-graduate programmes, MISB Bocconi’s Executive Programs In India like the International Executive Masters in Business (IEMB) is specifically designed to cultivate these core competencies. Our distinguishing factor? Students gain access to critical career-boosting benefits while retaining their current positions. Read on to learn why there’s no better way to sharpen your skills than with the IEMB. Nothing to Lose At MISB Bocconi, we recognise that the needs of today’s students are changing. Whether you’re a current manager looking to step into a loftier leadership role or you’re returning to the workforce after time off raising a family, IEMB is specifically formatted to offer all of the benefits of an MBA without the full-time commitment. In addition to being more compact, the programme is also financially more sustainable. Not only do students have the option to pay as they go, but employers are also likely to offer tuition support. Why? Because they stand to benefit, too. One look at IEMB’s participant profiles tells a compelling story. Armed with approximately 11.4 years of experience and at an average age of 35.6, IEMB students come to us ready to learn and level up. This adds up to a robust, dynamic and vibrant environment like no other. Everything to Gain The payoffs of an international b-school education in today’s globalised economy are profound. Of course, there’s the recognition: a world-class Master’s certificate from SDA Bocconi is highly regarded by today’s employers. Along with that comes all of the advantages of a Bocconi education, including global business knowledge, international immersion, hands-on experience, and abundant networking opportunities with both peers and distinguished international faculty from SDA Bocconi. During IEMB’s 18-month period of study, you’ll learn and apply a breadth and depth of concepts aimed at preparing you to navigate the challenges ahead while honing your leadership capabilities — both inside and outside the classroom. As the value of diversity becomes increasingly clear, so does the call for diverse leaders to chart the course. At MISB Bocconi we understand that a full-time MBA program is not ideal for all students. We not only welcome those who come to us from the full spectrum of experiences and backgrounds, but we’re also proud to present them with a unique best of both worlds opportunity in IEMB. Growth-minded executives looking to accelerate the path toward their career objectives without committing to a conventional, full-time MBA won’t find a more exciting place to do so than wit the Executive Programs at MISB Bocconi. Download Brochure – Request for Profile Evaluation
Student Diaries: Specialization Semester In Milan By Aadil Naik
What is education? Is it academics? Is it long lectures and assignments, followed by exams to validate your knowledge? Or is it something more? And what is the eventual purpose of education? I have spent a lot of time pondering on this, and I believe the purpose of education is to stimulate the student mind towards learning, innovation and creativity. While the previously held belief was that this comes from books and academia, the latest studies suggest it comes from literally everywhere, and primary among those being people, places, and new experiences. As a student in the Post Graduate Program in Business at MISB Bocconi – India, I got the unique opportunity to test this out during the mandatory four month semester at Universita Bocconi, Milan. It is a brilliant platform to see such a different and diverse side to education, people, and places! During these four months, Universita Bocconi plays host to over 3000 exchange students from across the world, whom you share classes with. I found this to be an incredibly enriching experience, as you get to see how different cultures from across the world approach the same situation! Some cultures (like my German classmate Damir) are super focused and hard working from day one; no nonsense, and functional. The efficiency they bring to the table is astounding. On the other hand, there are other cultures with a more relaxed attitude, who would wait until the end to start working, and still manage to pull it off. (I think we Indians fall somewhere toward the latter). And of course, the interaction doesn’t stop at classwork. I made quite a few international friends, most of whom I am still in touch with even today. I got invited to Naples (thank you Roberta and Mattia) for the weekend and spent another in Germany. I saw that most people are extremely friendly, even though everyone’s definition of friendly varies. And all this just showed me the diversity in approaches while maintaining the unity in results. I think interactions like these just expand your horizon to quite an extent. Then, of course, are the professors. For the first time in my life, I got to study under professors from such diverse backgrounds, and how those affect their teaching style! Professor Burack Oc, a full-time researcher, took a course on Leadership and Power and taught the entire course using discussions, research and going into the depths of the methodologies used. This was a stark contrast to our Human Resource Management Professor Arnaldo Camuffo, who had spent most of his life in academia, and used a lecture-discussion-guest session approach. The professors were extremely approachable, even after lectures, and were always encouraging of questions, which I feel stimulates learning to a great deal. While both methods were poles apart, they did the job they intended to, that is, wake the mind up to possibilities, questions, and discussions. Mission Education accomplished I’d say! My four months in Milan though would be incomplete without mentioning my weekend travels. Being centrally located, Milan is a great spot to travel anywhere in Italy, and pretty much most of the Europe. In my scope to see new people and cultures, I stayed away from tourist spots and instead went to lesser known places. I rode down to Kitzbuhel, a small town in beautiful Austria and stayed at a small family owned hotel. Besides this, I went to Portofino, a small fishing village 2hrs from Milan and went Scuba Diving and I also spent two days in Naples with a couple of locals who showed me around. Every place has its unique culture, and the only constant being their friendliness towards tourists. Oh and the food! It is nothing like Indian spicy food, and it will take you a couple of weeks to start picking up the tastes, but once you do, you start appreciating the subtlety of it all. Yes, the pizzas are better than anything you’ve had (I can’t have pizzas in India anymore. Fact), the gelato servings can be an entire meal, nd the variety of food is an experience in itself. All this comes together to show you just how big and diverse our world is. It helps you understand the humankind, and its markets, on a truly global scale. Today, I am of the opinion this trip has been a turning point in my life as a student. Four months later, I came back to India a wiser and better-connected individual. An Educated Man. This article is written by PGPB3 student Aadil Naik
5 Things You Must Know About the Post Graduate Program In Business(PGPB)
1) Legacy Bocconi has a 113 years old legacy. As a newer and yet increasingly vital entrant, MISB offers an equal yet different opportunity for students to benefit from the same extraordinary b-school education and global perspectives, but against the distinctive backdrop of India’s vibrant and significant cultural ethos. 2) Location With all it has going for it, it’s no surprise that Mumbai also nicknamed the Gateway to India and the City of Dreams has earned alpha city status. Aspiring business leaders will find no better setting for learning, networking and innovating than at MISB Bocconi, in the heart of this remarkable global city. 3) International Imperative The opportunities afforded by MISB’s international teaching environment have a profound impact on benefits that stay with students throughout their lives. Also, MISB Bocconi takes it a step further thanks to an active network of exchanges, collaborations, and interactions all over the world. 4)Small Batches Some business schools turn out grads like factories turn out packages more focused on sheer numbers than on the quality of the product. At MISB Bocconi, we are proud to go about things in a different way. High-Quality classmates, more faculty and peer interaction and targeted career development services are just some perks of the PGPB program 5) Corporate Network With Mr. Ratan Tata graduating the PGPB2 batch and Mr. Kishore Biyani, opening the PGPB4, MISB Bocconi, is committed to helping our students develop and grow the networks that will not only help them reach their goals but which can collaboratively move the world. MISB Bocconi may have a brief past although it has a vibrant present and a bright future. The PGPB is designed to help you reach your professional goals.
Student Diaries: Shradha Varma’s Internship Experience with Vodafone
All of us dream of perfect summer internships from our perfect B-Schools. However, once you have such an internship in hand (with a handsome stipend), you also want it to be in your hometown so you can save on the uncalled expenses and get ‘Ghar ka Khana,’ ‘Mummy ka Pyaar,’ so that the ‘Boss ki Jhaad’ is dealt with! I am a proud intern at Vodafone, Kolkata—which happens to be my hometown as well. Having finished my induction and gearing up for the upcoming days of fieldwork, in less than two days I am thrilled by the treatment the company has offered. Since we are 4 interns (girls) here in the Kolkata circle, we were greeted with a bouquet and a lengthy induction on day 1 with various functional and business heads. Oh, our Business Circle Head is a man with a fantastic personality, and here is a thought he left us with: “The reason for most divorces nowadays is that even after marriage, people do not stop searching. That is one reason they are never satisfied or do not value the things they have. Their thirst for ‘better’ is never quenched, and that is why they do not value things even after having them. Give things time. It is not just the people but also the job you do or the things you want. Everything will make sense later. Be patient. They WILL work out.” Little do we understand these things, but in just two days, we know quite a bit about ‘call drops,’ ‘Postpaid vs. Prepaid,’ ‘Churning and Attritions,’ and amidst all this, our HR leaves us in awe with his gestures. We were given a goody bag along with our project details, which certainly reflected the sentiment: ‘Here is your lollipop, eat it and start working.’ On a lighter note, I understood that for Vodafone, ‘Done is better than Perfect.’ My project here is extremely interesting and challenging since it incorporates Marketing Operations and ground-level sales analysis. This is something I have never done before, and I think this is the right opportunity for me to showcase my abilities and make the most out of this learning experience. I am ready to bring energy to the table and am curious to learn. Wish me luck! The author is PGPB4 student Shradha Varma, who is interning with Vodafone.
Student Diaries: Internship Experience at SOL Italia
Ciao..!! Taking care of an Intern shows how good the company is and their culture. I’m happy and lucky in that way. A perfect flight booked by the company for us from Bangalore to Italy (Emirates) made us feel great. My experience with SOL Group in Monza, Italy (loving every minute of it) is more incredible than anything I could have ever imagined. I had no expectations upon arriving in Italy and soon found myself falling in love with this city and its people. A car to pick us up from the airport to a perfectly arranged accommodation. It’s such a fun experience to be fully immersed in an international business environment.The opportunity to work with such a diverse group of people has been invaluable. The internship is testing me and is challenging me in ways I have never imagined. I’m so grateful for the opportunity to learn and grow in such a dynamic and fast-paced environment, surrounded by brilliant and inspiring people. Being immersed in a beautifully different culture is helping me learn about myself and others, and all of the similarities we share despite being from two diverse countries of the world. I learned so much about the cross-cultural applicability of my work and was able to find out more about my field, in ways I could never have without this experience. I have a deeper appreciation for my culture and a great appreciation for my host culture as well. I’m creating countless memories and new friends and overcoming the challenges of navigating a foreign country, and I know this is just the beginning of many incredible experiences. Monza, Italy is truly a beautiful city filled with wonderful food, parks, artisan and food markets, endless cafes to linger around, and let me mention, more FOOD! Be careful of how much Pasta e Fagioli, Neapolitan pizza or Tiramisu you eat because I’m surely going to gain a few pounds before leaving Italy. Last but not the least, One thing for sure that I will learn good level of Italian language before I leave this place This testimonial piece is written by Sunil Jayakumar, PGPB4 Student who is doing his Summer Internship with Sol Italia
MISB Bocconi’s Executive Education Program: Is It Right For You?
A great deal is written about the MBA imperative — particularly in today’s competitive business landscape. But the truth is that a full-time, two-year MBA program is not necessarily the best or only course for everyone. If you’ve been contemplating advancing your education in order to give your business skills a critical boost, but have struggled with the thought of diverting from your current career track, MISB Bocconi’s International Executive Masters in Business (IEMB) proposes an innovative solution. Let’s take a closer look at whether it’s right for you. An Executive-Friendly Format If you’re like most MBA-aspiring managers, there’s one major thing holding you back from pursuing this career-changing degree: the time commitment involved in a conventional MBA. After all, you’ve worked this hard to get to your current position. While an advanced business degree promises plentiful opportunities, it also inherently represents a step in a different direction. While the IEMB offers all of the benefits of a prestigious SDA Bocconi Executive MBA, it does so in an executive-friendly format. For two weekends each month over the course of an 18-month period, students are immersed in a premier educational environment at our state-of-the-art Mumbai campus. During that time, they benefit from IEMB’s international focus; cutting-edge, outcomes-based teaching methodology; and an international curriculum taught by esteemed faculty from Milan’s SDA Bocconi. IEMB students also spend two vital weeks at SDA Bocconi in Milan — an opportunity which vastly enriches the b-school experience while further cultivating the global outlook sought after in today’s business world. The curriculum is specifically designed to fit the schedule of a working professional. In many cases, your employer may even be willing to cover some or all of the cost of pursuing this powerful degree. Another reason to consider the IEMB? In addition to saving both time and money, the programme is also conducive to students with families. The Bocconi Advantage As the world’s only offshore presence of Italy’s leading management school, we are proud of our unique heritage, bustling present, and bright future. The Bocconi Advantage is something we talk about a lot here at MISB Bocconi, and with good reason: it’s an integral part of who we are. When you select the IEMB, you gain access to all of the advantages offered by a Bocconi education. Of course, there’s the name which alone speaks to a one-of-a-kind legacy. But it’s also about much more than a name. A Bocconi education opens doors — to new knowledge and ways of thinking, unprecedented career opportunities, and an amazing network of 80,000 alumni all over the world. If you’ve been considering pursuing an Executive MBA, but conventional programmes don’t fit your individual needs due to either professional or personal commitments, we invite you to step outside the box and consider this rigorous and rewarding programme. Designed for current managers with at least five years of experience, the IEMB at MISB Bocconi may be just what you’ve been looking for…and then some. Download Brochure – Request for Profile Evaluation