Tech Trends - Industry Articles

Re-engineering Business Education for the 21st Century

By Iris Blanc

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“[B]usiness programs at post-secondary institutions are among the most popular, and an MBA is one of the most sought-after master degrees in the United States. ”

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Introduction

Welcome to the 21st Century, where the term, "Business Education" will be considered so 20th Century. In this century, the term "business education" will be replaced with "Education for Business" to reflect the needs of today's workplace and beyond.

The workplace of today requires its workers to use computers, understand how they interface with other technologies, think critically, solve problems, communicate effectively, apply technology to task, and work in teams.

For the last several years, we have been hearing business educators talk of the need to re-engineer business education programs that prepare students for this changing workplace. We have seen efforts made to change existing programs-from renaming, updating and/or adding new courses to eliminating those that are no longer relevant.

Historically, business education has been an "elective" program in most secondary schools. Ironically though, business programs at post-secondary institutions are among the most popular, and an MBA is one of the most sought-after master degrees in the United States. Why then do most business education programs receive second billing at the secondary school level?

One part of the answer is that business education programs are seen as programs for the non-college bound-a perception that is historically based. In the first half of this century, business education programs prepared skilled office workers and were designed for students who were going directly to work from high school. The world has changed; unfortunately, the perceptions of business education as well as many of the programs have not. With schools emphasizing higher academic achievement and increased requirements for graduation, business education remains an "elective" program for those students who wish to take several extra classes before they graduate.

However, educators are recognizing these facts:

• To succeed in business requires high academic achievement.
• The business of America is business.
• High school prepares all students to transition to college and ultimately to career.

Therefore,

• Business is academic.
• All courses educate for business.

The Virtual Enterprises, International Program, an initiative of the Board of Education of the City of New York, speaks to the challenge of preparing students for the workplace of 21st Century. This program is becoming the catalyst for redesigning and redefining business education programs both at secondary and post-secondary institutions-from the content of the programs to the way instruction is delivered.

Background

After visiting practice firms in Vienna, Austria, the New York City High School superintendents spearheaded the development of practice firms (virtual enterprises) in seven New York City public high schools. The year was 1996.

Virtual Enterprises, International is a capstone class that allows students to experience in a simulated business environment, all facets of being an employee in a firm. The program provides students with an in-school work experience where they develop school-to-career skills. "Employees" are responsible for the completion of real work-related tasks and transactions including trading with other simulated firms around the globe (today, there are 52 enterprises in 40 New York City public high schools, over 100 firms in 5 states within the United States at both the secondary and post-secondary level, and more than 3,000 practice firms in 20 countries).

Program Description

The main objective of the program is to improve students' skills in problem solving, teambuilding, and communications. In addition, students participate in the international network of practice firms, and thus acquire global economic knowledge (including monetary and business systems of the countries in which the practice firm operates). Students use technology as applied in business, including the use of the Internet for global transactions and communications. Benefits of the program are its ability to engage students in hands-on applications with tangible results, its emphasis on team work and problem solving, and its success in conveying the expectations of the workplace. Each enterprise has a corporate partner who serves as a mentor to the firm as it is building and developing its enterprise.

In this environment, the teacher's role changes from "sage on the stage" to "guide on the side." The teacher serves as a facilitator, staying in the background as an observer and deciding when appropriate to give direction. The facilitator provides guidance as students tackle problems and determine how to solve them.

Schools that have implemented Virtual Enterprise Programs have restructured their business programs to include rigorous and relevant foundation courses that support the Standards, are aligned to academic outcomes, and include content that is needed to understand business, finance, economic and entrepreneurial concepts.