Experts Concerned About Falling Number of Full Time MBA Applicants

It has been observed that executives tend to avoid business degrees when the economy looks good in order to progress their careers. But the same business executives start running in groups towards business schools when the economy looks sluggish as MBA degrees helps them to climb the corporate ladder. However, this observation does not hold true anymore as the recent recession has completely changed the market and the business world.

Rise in MBA Applicants in US & Europe

Experts are now looking forward to the number of MBA applicants in the US this year as economies in North America and Western Europe are getting stronger. Although many leading B-schools in US have not yet reported their application figures, but some of the renowned schools have claimed a noticeable rise in the class of 2016. The UCLA Anderson School of Management has reported an increase in applications by 32%, while at Kenan–Flagler Business School at the University of North Carolina, there has been a rise of 28% in enrolments. Moreover, the US Department of Education has also confirmed that the number of master’s levels students pursuing business degrees was higher than those studying education degrees.

Growing Concerns of Education Experts

However, several admissions directors believe that all this data is unreliable and misleading. Niki da Silva, Admissions Director at Rotman Schoolof Management, University of Toronto, says, “It seems that there is a small number of programmes that are doing well, but the rest of the market is flat”. In fact, most of the reputed business schools are now making extra effort to attract more students. Phil Carter of Imperial College London says, “It’s forced us to proactively look for the right leads”.

Gareth Howells, MBA Programme Director at London Business School believes that it is foolish to think that the MBA market can go back to the 2008 levels. He says, “The protracted nature of the downturn ripped up the rule book on a lot of issues.” Currently, the business education market has become segmented and very complicated. The fact is online and part-time MBA programmes are severely affecting the market share of the traditional full-time programmes. Furthermore, specialised master’s qualifications and professional degrees like the CFA have also posed serious threat to the full-time MBA programmes.

Increasing Demand for One Year MBA

ChristineSneva, the Executive Director of MBA admissions at the Samuel Curtis Johnson Graduate School of Management in Cornell University, points out another aspect. She says that European model of business education is progressively becoming more threatening for the conventional 2 year MBA degree programmes in the US. She says “Europe has been the leader in looking at what flexibility meant to people.”

KateSmith, Head of Admissions, at the Kellogg School of Management, Northwestern University, assures that the school is currently planning to attract more students for it 1 year MBA programme. Admissions Consultant Stacy Blackman also believes that the popularity of 1 year MBA programmes is growing exponentially as nowadays most students apply for both 1 year and 2 year degrees. She says, “People are just seeing that you can accomplish an MBA in one year and it is very effective”.

Emergence of Undergraduate Business Programmes

Another factor directly affecting the number of students applying for full time MBAs is the rise in business management programmes for younger learners. As a result, most recent graduates or undergraduates are gaining knowledge in business. Paul Danos, Dean of the Tuck School of Business, Dartmouth College, says, “In the future we are going to be teaching an array of programmes. Before everybody lived or died with the applications for the MBA, now we’re getting demand at every level”.

Growth in Applications, Not Applicants

However, the real doubt regarding the figures arises from the fact that MBA aspirants now tend to make more applications. According to Admissions Consultant Stacy Blackman, earlier applicants would apply to only 2-3 business schools; but now most candidates apply to 4-5 schools. This results in the rising number of applications (40%), but not the actual number of applicants.

Whether increased applications will finally result in increased number of students can be found out only in September-October, when students get enrolled into the business schools.

Business Education- 3 Simple Steps For Reinventing B-Schools

Business schools have effectively created generations of business leaders through their MBA programmes for years. These MBAs eventually became successful managers, executives, management partners and managing directors. However this does not hold true anymore. What proved to be effective in the past is becoming redundant now. As the business world is continuously changing, there is an urgent need for constant restructuring and reinventing business schools, careers and organisations.

In this intensely competitive and complex corporate world, educational models should be developed in way that it becomes relevant for the current scenario. Here are 3 basic and yet effective suggestions for business schools around the world to revamp and rebuild an obsolete educational system-

Hard Skills Are Not Enough, Teach Creative Problem-Solving Skills

The old operating manuals for achieving success have become useless now. Our future business leaders need to develop the abilities to improvise and find innovative solutions in real time to face unique challenges present in the global market place. Hence B-schools need to prepare their students to counter future challenges by enabling them to think productively instead of simply going through the motions.

Business schools must design projects, coursework and assignments that would help the students to develop creative as well as analytical thinking. It is only by providing the students the opportunity to gain experience in effective decision making in the face of uncertainty, B-schools can offer more valuable training than simply teaching them to calculate discounted cash flows. They should be encouraged to take calculated and responsible risks and provide solutions to creative challenges.

Create Modern Business Leaders Instead of ‘Old School’ Leaders

Conventional business schools create business leaders in the old-school “boss” model where a single leader instructs and leads the team. MBAs who become business leaders usually act like Orchestra Conductors. Although they do not play any musical instruments, they guide their teams to stick to the notes, written on a page, with accuracy and precision. Even though this model might have proved fruitful earlier, today business leaders need to act Jazz Musicians, instead of Orchestra Conductors. They need to form small groups of skilled employees involved in an ongoing and open-ended process of exploration, innovation and creativity. Innovation will flourish when calculated risk-taking will precede compliance.

Create Leaders Who Focus Talent Development Rather Than Management Systems

Earlier, the focus of business models was on developing repeatable and tightly functioning management systems. However, at present, markets around the world are changing continuously and have become more fluid as well. Thus, now leadership needs to focus more on developing talent instead of strengthening fault-tolerant processes.

Today ongoing creative disruption has gained prominence over rigid management procedures as the way towards success. Successful business leaders are now augmenting their impact through the employees they have trained and developed, instead of concentrating on enforcing the rules they have formed. Currently, businesses require leaders who will be able to increase their leadership capabilities, rather than just complying with directives.

Modifying Approach to Create Future Leaders

In order to remain relevant and sustain in the rapidly transforming corporate world, business schools must modify and alter their approach. Today’s business leaders need to be creative and should be able to transform, disrupt and reinvent on an ongoing basis in order to achieve their business goals. Faculty and administrators of B-schools should also follow the same approach if they wish to create excellent business leaders for the future.