In February 2005, Tuck Business School, at Dartmouth College, announced a new US$10.5 million fundraising drive aimed at enabling the school: "To stay competitive and to define the leading edge of business education." Tuck isn't the only b-school feeling the competitive heat. Business schools in the US and Canada are currently under pressure on a number of fronts. These include the changing demographic profile of the population; new ways of taking the MBA; and criticism from some leading business academics. But, if North American business schools have been a little complacent in recent years, the signs are that they are sharpening up their act.
In the fast lane
Many business schools are quick to acknowledge the challenges they face in the next few years. "We see a changing MBA marketplace," says Mark Rice, dean at the FW Olin Graduate School of Business at Babson College, Massachusetts. "Applications are down for part-time programs; companies are taking a harder look at the who, where, and why of tuition reimbursements; and today's working professionals want a more relevant program delivered in less time without leaving career and family behind." Babson, known for its strengths in entrepreneurship, is taking its own medicine in its efforts to keep ahead of the pack. It has recently added a new program to its MBA roster in response to changing demand. Fast Track is an online MBA that aims to blend online learning with the interaction with faculty, peers and business executives that full-time and part-time MBA students benefit from. The program takes 26 months to complete and is targeted at executives being fast-tracked in the organization they work for. Although the majority of work is completed online, participants have monthly face-to-face meetings on the Babson campus. One commonly made criticism of the MBA is that it is not practical enough. It is not a criticism that can be aimed at the Fast Track program. "We designed this especially for the working professional. What we cover in a class is immediately relevant to a participant's work environment," says Bill Lawler, professor of accounting at Olin, and head of the new program.
Alumni fund change
The Stephen M. Ross School of Business at the University of Michigan made history in 2004, when New York City real estate developer Stephen M. Ross, BBA '62, gave a gift of US$100 million to the University of Michigan's business school. It is the largest donation ever to a US business school. The school has responded by expanding the array of electives and dual-degree options, which they claim, gives each candidiate the power to customize a personalized portfolio of coursework and real-world experience, tailor-made for their specialized career goals. "Our vision is to be the best at educating leaders for the world of business by giving them an experience that combines rigorous intellectual preparation with results-oriented practice," says Dean Robert J. Dolan.
Building tomorrow's leaders
"When Steve Jones joined UNC Kenan-Flagler as dean in 2003, his first question was: 'How can we make our students even more competitive with hiring organizations?'," says Mindie Storrie, director of MBA Career Services. Coming to UNC Kenan-Flagler at Chapel Hill, North Carolina, with experience both as a CEO and hirer of MBAs, as well as consulting experience with McKinsey and Company, Jones is well placed to know what the today's business world demands of MBA graduates. "We sought extensive input from corporate executives and identified the gap between what all top business schools traditionally offer and what companies really need," says Storrie. "We responded with curricular changes in our MBA program to close those gaps."
One answer is a sharper focus on soft skills. The school now requires students to take a custom-designed management communication course, taught in groups of ten students. This aims to develop skills in persuasive communication, negotiation and effective communication at all levels of an organization.
UNC Kenan-Flagler has just launched the Kenan Leadership Initiative. This is a new course with a range of activities designed to accelerate the development of leadership skills and traits in MBA students. Although acknowledging the need to move forward with its new fundraising drive, Tuck is a school not afraid to be put under the MBA spotlight. "Tuck welcomes scrutiny because we
believe that the way we focus on our students -on their learning, their leadership skills, their career success-leads to a value proposition second to none," says the school's dean, Paul Danos. He points to the innovations that make Tuck's MBA one of the top ranked programmes: teaching by world experts, extensive team building, experiential learning, and access to successful alumni. Tuck also places great emphasis on building the leaders of tomorrow. The school's Cohen Leadership Development Program involves periodic self-review as well as review by fellow students. It also includes one-on-one coaching with students required to write a personal leadership development plan.
An innovative approach
At the USC Marshall School of Business, Los Angeles, California, wholesale changes are underway. Beginning with the Fall 2005 semester, the business school is revamping its entire MBA experience, including structure, delivery and curriculum. Why? In the words of the school:
"To ensure our graduates bring the skills and mind-set that business needs."
Multi-disciplinary team teaching, integrated career placement from the outset, themed terms with an emphasis on combining the business basics with real business situations; these all prepare the student for the competitive jobs market.
There is a particular focus on innovation. "We believe the ability to recognise and lead innovation is the single most important attribute in an MBA graduate's future success," says USC Marshall's Dagmar King. "So we're introducing a required course on innovation that focuses on new approaches to developing products, managing processes, thinking out solutions and managing people."
As with other schools, soft skills are getting some attention too. The school has a new Professional Development for Leaders program. It runs over a year and includes improving skills in business presentation, writing, interpersonal communication, networking and leadership. While the business schools jostle for position, hone their curricula, and refurbish their campuses, it remains to be seen whether they will attract the high caliber students in the numbers they hope.
There is little doubt that business schools that fail to respond will suffer. There is, however, one surefire winner, guaranteed to benefit from the changes underway - the MBA student. There may never have been a better time to take an MBA in North America.
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