"Always Have An MVA (Minimum Viable Alternative) to a Massive Expansion

As the wreckage of Silicon Valley Bank spreads across the economy, we're asking the members of Punks & Pinstripes about the economic crises they've survived, and what they learned from them.

Here's Andrea Mohamed reflecting on what she learned from the collapse of #lehmanbrothers:

“What I learned from the 2008 financial crisis is that during a crisis you need an MVA (minimum viable alternative) to a massive expansion.

When the 2008 financial crisis struck, I was the Director of Communications for Duke University - The Fuqua School of Business , rolling out an ambitious expansion strategy with a new #mba program and new campuses planned in Shanghai, New Delhi, Dubai, London and St. Petersburg.

After months of preparation, our timing was ill-fated as we publicly launched our global strategy the exact day Lehman Brothers collapsed, which as we know now triggered a global economic collapse.

The ensuing financial crisis impacted demand for MBAs, derailed the 5 campuses strategy, and increased resistance and skepticism for the global expansion among many University stakeholders.

The experience hammered home an important lesson for navigating an economic crisis: Always have an MVA (a minimum viable alternative) to a massive expansion.

For Fuqua, the strategy was ambitious and history-making. We posited that with global interdependence, we needed to become embedded and connected in critical economies across the globe creating a unique learning experience that would give future business leaders the skills necessary to be “of the world,” not just casual visitors.

Regrettably, when the economy crashed, we hadn’t planned for such a scenario and didn’t have viable, smaller alternatives baked into the plan—a plan that suddenly became even riskier and bolder. This meant that the old guard, many who were lukewarm or outright resistant about the expansion strategy, seized on the downturn to re-implement their older, safer strategies and put pressure on the visionary leaders who had devised the strategy.

There’s a second lesson here, too. Obstructionists get stronger when the economy crashes. You need to over-correct for the fact that they see #transformation champions as part of the problem. You have to re-cast yourself as a fierce champion of core values and re-cast your strategy for progress as part of a long line of pioneers who made your institution as great as it is. It will hurt to say it—to cast yourself as an institutionalist, a traditionalist—but do it anyway.

While Duke did eventually build a campus outside of Shanghai (Duke Kunshan University), the full vision of the early strategy did not materialize. Nevertheless, Fuqua became far more global, launched additional innovative graduate programs, built its brand, and rose in the rankings as a result of its bold ambitions."

Andrea is a founding member of Punks & Pinstripes, a private network for the 100 most badass executives in business, who look out for each other during moments of economic turbulence.