Can we promise ourselves nothing like that will ever happen again . Im not sure but weve learned a lot. Charlie we close with Stella Mccartney daughter of Paul Mccartney and famous Fashion Designer in her own right. Im really intrigued by fashion but also really interested in this sort of psychological side. I want to know why women choose to wear what they want to wear and how it makes them feel. That excites me. Charlie you want to understand the people who buy your clothes. Yes, and i want to give them something that really makes their life better that makes them feel better and something they can turn to. As a woman wearing my clothes, i dont buy something and throw it away. Im consistent in how i navigate through my wardrobe a reflection of how i feel. Charlie the dean of the Harvard Business school and Stella Mccartney, coming up. Captioning sponsored by Rose Communications from our studios in new york city, this is charlie rose. Charlie nitin nohria is here. He has been dean of the Harvard Business school since 2010, an institution Whose Mission statement is to educate leaders who will make a difference. Under his leadership the school has met the demands of the 21st century, world war training across the globe is an increasing part of the curriculum and the school is taking steps to create a more inclusive environment for women. Pleased to have the dean of the Harvard Business school at this table for the first time, welcome. Thanks charlie. Charlie tell me in your own words how the harvards Business School has changed since you have been the dean whether youve brought about that change or not. I was very important i became dean of the Harvard Business school when we began our second century and you were there for the bisenthe bicentennial. Yes i was. We were known for the case method. It has has been the heart of of Business School. I asked the question what can we do to strengthen this wonderful curriculum. We added an opportunity not to just, in the case method we brought the world to our students and through the field method were sending the students into the world. Its learning by doing instead of imagining what you might do. This is a powerful addition to the curriculum. Weve embraced Online Education and ran a series of experiments there. In terms of the intellectual business of our school we thought about big projects. Weve done a project on major competitiveness, tackling the healthcare crisis and looking at energy and the environment. So were asking ourselves how can the school be relevant. Were celebrating our 50th 50th year of women being in the school. So were increasing numerically the number of women in school and want to make sure they drive thrive at schools and their careers after. We push internationalization of our Business School. The education were giving our students is to prepare them for what i think will be a Global Century in business. Finally, were taking advantage of the fact were part of a great university. Were trying to do things to make sure Harvard Business school is a part of the university. Charlie is the purpose to make sure the students will make a difference. Our purpose is to make sure they make the difference. Our curriculum design is to prepare leaders to make a difference in the world. Charlie your expertise is management and leadership correct . Yes. Charlie tell me about leadership. Lets assume that a political heard came to you political leader came to you who had some skills a good education, but have come to a position of trust and accountability and difference. What would you say to them thats essential to know to maximize their impact . So i think the first thing the leaders have to know is society will hold them accountable for will they make society a better place. If the difference they make dont allow peoples lives to be better they will not be judged as leaders. In the end you cant decrair yourself a leader, the other person says youre a leader. Usually a person will call a person a leader if what that person did left their lives improved. So leadership in the end is about making peoples lives better. Charlie whats the art of inspiration so that people want to follow . People want to know that youre authentic, that you come from a place where what you are saying is something you deeply believe in. I think people will follow someone who is authentic, who has a clear moral compass. They want to know that what drives you is not just your own personal ambition but a greater purpose. People expect of leaders that they have a way of simplifying the complexity in the world and finding a way to head true north. They want to know what true north looks like. My sense is people in the world want someone who has a simple believable, authentic view of the world which they feel will allow their lives to have get better. Charlie always seemed to me the leaders ive admired the most, they were able to articulate the mission. Yep. Charlie and what your significance was to it and what your success meant to it. Yes. Charlie so you were there for purpose and ownership. And your work matters. One of the things i have learned is we teach our students to recognize that, in the end, you will be experienced as a leader if people feel you are accountable for everything you do and that through your work they can find meaning in their work, that together you will accomplish something that neither you or the other purpose will accomplish individually that theres something about working together that allows the whole to be greater than the parts. I think leaders create that experience in others and that makes them powerful. Charlie 2007 and 2008 were a difficult time for america and its economy and its businesses. Whats changed . Did it affect the way did it impact the way you felt the responsibility of the university and the Business School . I think people realized then and i hope that that lesson will be taken very seriously that effective business is about the display of both competence and character. Charlie right. And that we can get ahead of ourselves, that if were not careful we can take on too much risk that Systemic Risk when it collapses can collapse in very damaging ways. Charlie which is exactly what happened. Which is exactly what happened. So we have gone back after the 2008 crisis and written cases on every example. We teach by the case method and asked ourselves the question what can we learn from the experiences . Weve had more cases of failure that are part of our curriculum thane ever before because we want to make sure students dont get so enamored by the prospects of success and feel everything they do will lead to positive outcomes, that they need to understand what causes failure and what can we learn from the cases of failure, what is the personal accountability they need to have, how can they create systems like incentive systems that can run ahead and run amok. So i think weve learned a lot from that moment. Can we promise ourselves Something Like that will never happen again . Im not sure but have we learned a lot . Certainly yes. Charlie and youve learned something about creating the mba oath as just one consequence of it. Tell me what that is. It was inspired by the idea of the hippocratic oath which is to say what should Business Leaders believe in as a set of true moral views that they should have that, just like doctors say do no harm is one of the first things and patients interests come before anyone elses interests and in the same way weve tried to articulate the mba oath and Business Leaders should start off with a dictate that says do no harm and deeply concerned about the longterm well fair of Companies Rather than short term. Weve tried to ask them to make sure that when they think about a business they ask themselves that beyond the profits of the business businesses have externalities, they can harm the environment, they have labor or customers and to think harvard about these externalities and Business Leaders are accountable for them as much as for what the firm does directly. So teaching people about the broader set of responsibilities is one of the things that we hope the mba would encourage us to think harder about. Charlie was there some resistance to it . We couldnt get people to say that the mba oath would be something that all our students should sign on to so its taken voluntarily by the students but the deal behind the oath, we have a course in leadership and the accountability which encourages us to think through an ethical economic and legal lens and to recognize sound business judgment actually meets all three lenses. So at least the oath, even though it was something notify one was willing to sign, the underlying views are part of our curriculum. Charlie when the president of harvard asked you to become dean of the Business School, did she tell you why she wanted you . I think all she told me was you are someone the faculty trusts, youre someone who comes from a background in leadership. The mission of the school is to educate leaders to make a difference in the world. I hope you will stay true to that idea and remain committed to developing the best leaders the school can. Charlie do you think because youve had diversity in your life that you are better doing this job in 2015 . I would think that i do believe my background helps. The fact that, in many ways i didnt grow up in the United States. I bring inherently a more global perspective. If you think about the future of the world, it certainly lies in emerging markets as much as it uh lies in the developed economy. I just came from a trip to india, china tokyo, japan. When i was in india, youre always reminded about the extraordinary opportunity that lie there. In many ways irvelings more comfortable in places like that. I try to get our students through the global field experiences they have. All 900 of our first year students now go out as part of their first Year Experience and go to emerging markets around the world. I dont think this would have been as easy for someone who didnt have the perspective as i did. I also think in many ways ive personsed the life as an example of the american dream. I was a member of a minority and sit hearing as dean of Harvard Business school. Only in america are these stories possible. Charlie when you left india, did you ever think im never coming back . Im going to america and im going to hitch my star to the Great American dream . To be honest i didnt leave india and think i would try to find a career in the United States. Would i imagine the career would lead me to dean of the Harvard Business school . No. Charlie but in terms of the academy . Yes, a professor with tenure that was my dream. Charlie and the world changed. A lot of kids coming out of india think about coming back more so than ever because weve seen the Economic Opportunities. Charlie the Economic Opportunities and intellectual opportunities change. I think the intellectual understand the have to catch up but the Economic Opportunities certainly have changed dramatically. We see in our own programs many people apply to ph. D. Programs, now Many International students applying to our mba programs. Several stay, many go back. Sometimes if not immediately but we start to see in five years of our students graduating many people go back to the emerging markets. So youre right the world changed. Charlie some them go back because the immigration policy to have the United States does not work as it should. I wish we could staple a green card to every diploma i give. That will be a wonderful thing for this country. Im an example of one of the reasons why it was great to become an academic. It was very easy to get a green card by becoming an academic. It made it easy for me to stay here. I have a great career. I wish we would create that opportunity for more International Students who come to the United States. Charlie tell me about Online Education as it applies to the Harvard Business school. So we think that Online Education represents a remarkable opportunity for the future of education. I must confess when i first became dean i was not sure Online Education would be that important to the school. Weve always believed in the intimacy of the case method. We have been lucky that we attract the most remarkable students and that is usually small scale so 900 students. Its not easy to imagine you can attract the remarkable students if you attracted 10,000. We have great markers that attracted great students in the classroom. Weve built a very unique Online Platform called hbx. Were trying to do case method online, trying to make it engaging and interactive. You cant spend three minutes on h. B. X. Without having to do something to interact with the other pierce who are online. So once we put our mind to it, we learn that actually there are many things that we can bring to an online setting thats taught to aperture at least some of the magic of the case method we have been known for. Charlie do you believe it might lead to some kind of degree qualification . As of now we are very committed to not having it compete with our degree programs. So were doing our Online Education as premba and were doing our Online Education as something that will provide lifelong education but we dont think that it needs to replace the mba which we still think is a degree that stands for judgment, it stands for a deep investment in learning a set of things. So as of now i dont think our Online Programs or in fact any Online Program will easily rival the degree programs we have. Charlie so what happens . You do it for your own edification . No. So the first product we created is something called h. B. X. Core, a suite of three introductory courses, the basics of accounting the base six of economic, base six of analytics, and we offer it to undergraduates. Were trying to say if youre a liberal arts or science major, you can continue to be a liberal arts mainly but you want a head start in business, then this gives you the basic vocabulary of business, and you can start a career and you dont have to do an undergraduate degree in business. Some day you might consieeu doing an mba. But we think there are hundreds of thousands of liberal arts majors ail across the United States and in other parts of the world who should do in undergraduate degrees what their heart tells them, whether history or biology or science or engineering. But then if they want a career in business, we can give them through h. B. X. Core 100 hours of Great Foundation to at least learn the language so they can begin their business careers and then if they have a further appetite for business education, we would say to them come spend two years at Harvard Business school and well prepare you for a lifetime of leadership. Charlie do you prefer they have time between undergraduate and the Business School . I would like people to spend at least three years before they come to the Business School. We have begun to admit some people in their senior year in something called two plus two before Business School so that two years later they know they can come to the school. Charlie that would be great to go now and take all the advantages from a different kind of experience from the academy. We found the two plus two, we introduced it because we wanted more people who were scientists, more people who in the two years between undergraduate and Business School would do things closer to their passions instead of feeling like they had to do work building towards the resume. We have people take chances with entrepreneurship. We have people who go out and make a movie work in nonprofits, so we end up creating many more opportunity so people spend the two years quite differently than just going to work for a Consulting Firm or investment firm. Charlie do you think the Business Community has done a good job in explaining the role and the possibilities of creating viable Sustainable Enterprises . Right now to my mind one to have the great challenges is the business has is the role of business in society is being questioned, and we as people who charlie and its integrity and morality and values and culture. I think people are beginning to tout that businesses in the end are great for the prosperity of society. I think that is such a tragic state to find ourselves in because to my mind if you think about the world and you ask yourself what is the best mechanism for creating prosperity in society . In the 20th century, about a billion and a half people were brought into th