A New Vision for IIMs: Beyond the Classroom, into the Boardroom
IIMs linking academic and business worlds via consultancy and executive training
When you picture India's legendary IIMs, you might envision rigorous exams, lucrative placements, and world-class business education. But behind the glamorous reputation of these institutions, there's a fascinating story — one where professors aren't only educators, but entrepreneurs, consultants, and industry titans themselves.
For over six decades, the IIMs have built more than just academic powerhouses. They've cultivated a dynamic, self-sustaining industry — an ecosystem rooted in knowledge, real-world experience, and business consultancy.
From the factory floor to the lecture hall
The IIMs' story can be traced back to 1961, when India's Planning Commission called for the establishment of IIMs to tackle the nation's expanding need for skilled managers. With a nudge from Harvard Business School and MIT Sloan, IIM Ahmedabad and Calcutta rose, setting a course: to marry academia with the industry. Unlike conventional universities, IIMs encouraged professors to keep their fingers on the pulse of business challenges, from developing real-world case studies to advising industry leaders.
The business-savvy professor
At IIMs, educators aren't just academic gurus. They're independent consultants and intellectual luminaries. Faculty members are encouraged to undertake consulting assignments, executive education, and research projects, thereby keeping pace with industry trends and generating revenue for themselves and their institutions.
According to data gleaned from faculty inputs and public disclosures, top-earning professors at IIM Ahmedabad can bring in up to 2.8 crores annually from external engagements. Similar trends can be observed at IIM Bangalore, Calcutta, Lucknow, and beyond. These figures align with IIM Ahmedabad's and IIM Bangalore's Annual Reports for 2022-23.
Time is money, but impact matters
To strike a equilibrium, most IIMs restrict the number of days a professor can dedicate to external engagements to around 52-53 days annually. This ensures core teaching and research commitments remain undisturbed, even as professors engage with businesses.
Interestingly, this balance hasn't affected academic performance. In fact, it's empowered the IIMs to remain highly relevant to the changing demands of business education. As a result, institutions like IIM Ahmedabad and IIM Bangalore consistently rank among the top 50 globally for their MBA programs (QS World University Rankings 2024), while IIM Calcutta and others follow closely.
A two-way street for students
The entrepreneurial faculty model extends tremendous benefits to students. MBA and doctoral students frequently assist professors on consultancy assignments or case development projects, offering hands-on experience and often leading to internships or employment opportunities. The cases created alongside students regularly find their way into classrooms worldwide.
A hidden revolution in business education
The IIMs were designed to cater to industry — and they've done so while reinventing their own role in India's knowledge economy. The economic value created through consultancy and executive education has allowed these institutes to fund scholarships, staff incentives, infrastructure, and research grants while maintaining academic independence.
The professor transforms into a practitioner, a thought leader, an industry partner. And most importantly, a link between India's brightest minds and its most significant opportunities. This model has ensured that IIMs don't just stay relevant — they stay ahead. And they've done so by quietly allowing their professors to carve out their own entrepreneurial paths.
[1] "IIM Ahmedabad Research: Recent Developments and Impact" - Journal of Management Education[2] "Multi-Dimensional Evaluation of Reputation in Global Business Schools" - Journal of Education and Training Studies[3] "The Impact of Innovative Curriculum Design on Student Outcomes in Indian Business Schools" - International Journal of Business and Management[4] "Case Study: ISB Hyderabad's I-Venture Immersive Program" - VentureBeat[5] "Integrating Indian Knowledge Systems into Management Education: A Case Study of SPJIMR" - International Journal of Management Education
The IIMs' entrepreneurial faculty model combines cutting-edge scholarship with real-world experience, enhancing academic performance and business education quality through several key mechanisms:
- Multidisciplinary Expertise: IIM professors often hold diverse academic backgrounds and engage in groundbreaking research on topics like leadership development, organizational behavior, and social innovation. This breadth enables them to integrate cross-disciplinary insights into curricula, fostering holistic learning.
- Research-Led Curriculum: Faculty actively contribute to domain-specific knowledge, with academic research directly shaping curriculum design. Contemporary challenges like digital transformation, sustainability, and globalization are regularly addressed, ensuring courses stay up-to-date with global best practices.
- Industry Partnerships: By collaborating with organizations on projects and case studies, IIMs bridge theoretical frameworks and practical applications, cultivating work-ready graduates.
- Emerging Trends in Business Education: Initiatives like integrating indigenous wisdom into management education reflect a broader trend in higher education, blending traditional knowledge with modern pedagogy. This approach keeps the IIMs competitive in a rapidly evolving global landscape.
- Entrepreneurial Ecosystem Engagement: By nurturing student ventures and incubating startups, IIMs translate academic research into actionable business strategies. Faculty often act as mentors for entrepreneurial pursuits, shaping the innovation landscape of India.
By merging rigorous scholarship with practical relevance, the IIMs' entrepreneurial faculty model cements their position as leaders in cutting-edge business education.
- In Lucknow, a IIM professor engages in investment opportunities within the burgeoning DeFi market, leveraging the ecosystem's dynamic knowledge and industry partnerships.
- At IIM Bangalore, a finance expert moonlights as a consultant, counselling corporate leaders on economic policies and business trends, demonstrating the institution's commitment to bridging the gap between academia and industry.
- IIMs are nowexpanding their reach beyond the Indian economy, with education and self-development programs tailored to the needs of the global market.
- The entrepreneurial spirit of IIM Ahmedabad extends to a partnership with a prestigious business school in the United States, fostering collaboration and exchange in finance, management, and business research.
- The success of this innovative approach has caught the attention of the International Institute of Management (IIM), who is now considering adopting a similar model in their own educational ecosystem.
- In the heart of Kolkata, a IIM faculty member applies her innovative research on sustainable business practices in a local start-up, highlighting the synergies between education, finance, and the economy.
