Business Day

Jesuits have a lot to teach MBA students

- This article first appeared in Core, a publicatio­n of the University of Warwick Business School ASHLEY POTTER

LEADERSHIP

All this material that we teach MBA students, the Jesuits have been doing in quite a natural way

FOR more than a decade, Bento da Silva, assistant professor of organisati­onal studies at Warwick Business School in the UK, has been studying the Jesuits, but not as a historian or religious scholar.

His interest lies in how the Jesuits successful­ly managed a global organisati­on for nearly 500 years, with nearly 200,000 employees spread across the globe. It is the sort of operation from which businesses can learn, especially those with “going global” at the core of their structure.

The Society of Jesus — its members are called Jesuits — was founded by Basque nobleman, soldier and future saint Ignatius of Loyola, who turned to religion after a French cannonball blew part of his leg off in Pamplona in 1521.

Dr da Silva believes the Jesuits are the first multinatio­nal organisati­on and have been the only truly global operation, adapting their culture to fit each geographic­al region.

“The Jesuits are truly global, not only in the sense that they adapt locally their businesses, or that they have an internatio­nal presence. They are truly global because they have no country of origin: they are neither Basque, nor Spanish, Italian, French, nor a Portuguese company — they are just a global organisati­on,” he says.

“What they do across the globe is, though, completely different — it’s tailored to the culture. All these lessons and all this material that we teach Masters of Business Administra­tion students at business schools, the Jesuits have been doing for almost 500 years in quite a natural way.”

The importance of learning local culture emerged as Dr da Silva’s research discovered just how influentia­l the Jesuits are.

The first Europeans to reach the Himalayas were Jesuits; the first Europeans to cross the Mississipp­i River were Jesuits; the first recorded crossing of Africa from coast to coast was made by Jesuits; the Brazilian city of São Paulo was founded by a Jesuit; Descartes, one of the fathers of modern philosophy, trained as a Jesuit; 18 craters on the moon are named after Jesuits; our calendar was created by the Jesuits. And you could go on and on.

“Their impact on science is huge,” says Dr da Silva. “So many scientific developmen­ts right up to the beginning of the 20th century came from Jesuits. Friedrich Hayek, the Nobel Prize winner, traces the emergence of liberal views on economics back to 16th-century Jesuits.”

Dr da Silva was particular­ly interested in studying how the Jesuits’ organisati­onal structure has evolved and how the way they are organised might explain why they have always been so successful.

“Instead of putting the emphasis on strategy, they devoted most of their first 20 years trying to devise the perfect organisati­onal structure,” he says. “What is interestin­g about them is that they’re one of the very few organisati­ons that has never changed structure, although they have grown a lot.”

As the Jesuits set about establishi­ng their global structure in the 16th century they looked to the recent past for inspiratio­n and Venice was the obvious place to start. From the 13th to the 15th centuries the Italian port was the centre of world trade.

“Some of the key structural dimensions they took from business ventures that they knew in Venice because their founder, Ignatius, spent a lot of time there. His key lieutenant was the son of a Venice merchant,” says Dr da Silva.

“They developed a very simple network-based structure and with it they were able to rapidly spread across the globe, in a way that very few organisati­ons can achieve; it is quite amazing.

“Of course, from a human resources point of view, they have some advantages over other organisati­ons — a religious vow is very different to a contract.”

The structure put in place by Ignatius remains in place and when the Jesuits set up a new network, they simply repeat it.

“The Jesuits may have 200,000 employees, but not in a hierarchic­al structure. Instead, they have mainly three hierarchic­al levels and they’re organised along geographic­al regions. They have their headquarte­rs in Rome and they have people managing several what they call ‘provinces’, that we would call geographic­al regions.

“The current pope, Francis, was in charge of the province of Argentina; he was Provincial of Argentina,” Dr da Silva says.

THE Jesuits have operations in more than 100 countries spread across six continents and though strategy is devised in its Vatican headquarte­rs, the regions are given plenty of leeway in implementa­tion.

“The provincial­s have lots of autonomy in terms of managing the daily operations in each geographic­al region, but the strategy is devised at the headquarte­rs, following the procedures of the General Congregati­on — the equivalent of, in the corporate world, a shareholde­rs’ assembly,” says Dr da Silva.

“Below all these regions you can have lots of different businesses because they have a very simple way of approachin­g strategy.

“They have five key strategic principles. Education, which is their main business; intellectu­al activity — engaging with universiti­es and higher education; China as a single market — they’ve been obsessed with it since the 17th century; Africa as a continent; and refugees, either war refugees, political, or urban refugees.”

Education is probably the most famous of the Jesuits’ missions. “Since the 17th century the Jesuits have had the biggest network of private schools in the world,” says Dr da Silva. “They have lots of universiti­es across the world and lots of high schools.”

THEIR focus on education has proved to be a good source of funding since the 16th century, a way of engaging with state-of-the-art knowledge and educating those most in need. For Dr da Silva, it is one of their most distinctiv­e strategic endeavours.

“Through education the Jesuits can spread the gospel, educate, network with other areas of knowledge rather than the religious, and help people move from poverty by giving them access to education.”

Companies putting corporate social responsibi­lity at the heart of their strategy could learn a thing or two from the Jesuits.

The Jesuits’ refugee service leverages resources from all over the world while not being associated with any particular country.

“The Jesuit Refugee Service is, like the Jesuits themselves, a truly global organisati­on,” says Dr da Silva.

“They’re replicatin­g their way of structurin­g an organisati­on, so the headquarte­rs of the Jesuit Refugee Service organisati­on is in Rome; the refugee camps are around Africa and Asia mainly, but one of their main activities there is teaching.

“They have a distance learning programme and in 2013 they had their first graduates on a three-year arts course, taught in the refugee camps by their network of US universiti­es.

“The headquarte­rs of the programme are in Rome, their clients in Africa and Asia, and people doing the teaching and delivering a degree (are) from a US university. Although this seems a very simple arrangemen­t, it is not that easy for business corporatio­ns to replicate,” says Dr da Silva.

“If you think about it, how many organisati­ons with around 200,000 employees spread across more than 100 countries and surviving for almost 500 years do you know?

“None.”

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 ?? Picture: AFP PHOTO, ANDREAS SOLARO ?? Pope Francis, centre, a former head of a Jesuit province, greets bishops as he arrives for his weekly general audience at the Paul VI Audience Hall earlier this month at the Vatican.
Picture: AFP PHOTO, ANDREAS SOLARO Pope Francis, centre, a former head of a Jesuit province, greets bishops as he arrives for his weekly general audience at the Paul VI Audience Hall earlier this month at the Vatican.
 ?? Picture: RON CASE/KEYSTONE/GETTY IMAGES ?? Jesuit delegates arriving at the Vatican, Rome, in 1965. Their influence has been undiminish­ed for 500 years.
Picture: RON CASE/KEYSTONE/GETTY IMAGES Jesuit delegates arriving at the Vatican, Rome, in 1965. Their influence has been undiminish­ed for 500 years.

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