Future of Business Schools An Analysis and Critique

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

References 1.Hawawini, Gabriel “The Future of Business Schools.” Journal of Management Development 24(9):