Future of Business Schools

1. Future of Business Schools An Analysis and Critique

2. Future Demand for Education • Demand for education will continue to grow • Demand driven by economic growth and globalization • Mature economies • Business schools become more specialized, focusing on local needs • Developing economies • Strong growth in business professionals

3. Globalization • Businesses are more international • Increased global competition • More complex • Need professionals trained in international business • Internationalization of business schools • Import model • Export model • Network model

4. Import Model • Bring faculty, staff, and students from places around the world to the school campus • Instruction is in English • Successful – start a new international university • Not so successful – transfer an existing school into an international business school • National roots in country

5. Export Model • Faculty and students attend a foreign country • University rents out facilities • Campus remains in original country • Expose faculty and students to different country and culture • Common method • Exchange programs with foreign universities

6. Network Model • Create multi-site campuses around the world • Each campus is a full fledge campus • Ideally a campus should be located in all continents

7. Network Model • Weakness • Keep campuses connected together • Not separate and distinct campuses • Knowledge and learning are spread among all campuses • Campus replicates itself in other countries • The same campus • Cultural does not change it

8. Faculty Shortage • Recruiting top faculty a challenge for business schools • Demand for business education is increasing • Flat growth in new PhDs • Number of PhDs may be falling

9. Why PhD Shortage • Good students are lured by MBA programs (Master of Business Administration) • Salaries are higher • 40% of PhDs work for industry • Higher salaries • Quicker promotions

10. Ways Around PhD Shortage • Business schools can hire PhDs from other disciplines and train them in business • Social science • Business schools can hire more masters level instructors • Business school may have trouble managing PhDs and non-PhDs together • i.e. salaries

11. Business School Programs • Programs • Undergraduate degrees • Graduate degrees • Executive training programs – executives at nearby corporations can attend night courses to complete a business master’s degree • Big money maker for business schools

12. Business School Programs • Business programs include large amounts of quantitative skills • Some people want programs to include softer skills • Ability to work with others • Leadership abilities • Entrepreneurship abilities • Ethics (“Societal Values”) • Corporate responsibility

13. Ethics • Could schools teach ethics? • Yes, then include some courses in ethics • No, then could screen students • Reject students with poor ethics

14. Technology • Communications and information technology • Traditional classes will remain the same • Technology will complement business schools • Technology may allow students in developing countries to study in developed countries

15. Technology • Business schools should incorporate • Videoconferencing • Students attend class at the same time, but in different locations • An online course • Homework via the internet

16. Business School Funding • School funding • Government • Tuition • Program fees • Donations • Author predicts • Less government funding • Tuition and fees may be lower from competition • Less future revenue from executive programs

17. Business School Funding • Donations • In United States • Private universities have large donations • Graduates of Harvard, Princeton, etc. have large salaries • Large corporate donations • Public universities varies, but usually 5% of students donate • Some may have a large corporate donation

18. Business School Funding • Donations • Outside the United States • Very few people donate money to business schools • Author suggests • A country changes a law allowing donations to be tax free • International campuses will develop skills and methods to encourage students and corporations to donate • Expend management and faculty time to encourage relationships • Relationships foster donations

19. Business School Governance • Business Schools will have to change governance • Donators should have say or feedback how school is operated • Large corporate donations • Alumni donations • Business education is more complex • Need experienced professionals to manage and administer programs

20. Brand Building • Should school be • Research versus academics • National versus regional school • School has strong brand name • Distinguishes itself from competing schools • Attracts better corporate sponsors, faculty, staff, and students

21. Brand Name • Want graduates to say “I went to…” instead of “I have a MBA.”

22. The Future • Traditional – business school is a factory • The future • School is a knowledge and learning network • School is connected with campuses around the world • Retain alumni in the network after graduation • Turn education into a life prolong process

23. The Future • Faculty are transformed into quasi-autonomous knowledge professionals • Faculty require flexibility to live and work away from their primary school campus • Not likely

24. References • Hawawini, Gabriel. 2005. “The Future of Business Schools.” Journal of Management Development 24(9): 770-82