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
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
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 School has strong brand name
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 “The Future of Business Schools.” Journal of Management Development 24(9):