MBAs

WORDS BY TIMOTHY S MESCON Ph.D.

The quest for the right MBA

For years, business schools have been battlingthe pundits who argue that the educational system is either too pragmatic or too theoretical. The arguments have kept business schools under the critical microscope of many columnists, but all the while the number of graduates still averages around 121,000 a year, according to the US Department of Education.

This past spring, however, the debate turned ugly. Distinguished business thought-leaders Warren G Bennis and James O’Toole in the May, 2005 issue of the Harvard Business Review asserted that business schools in the US and around the globe are failing to impar t useful skills, prepare leaders, instill norms of ethical behavior and even lead graduates to good corporate jobs. The root cause of today’s crisis in management education, assert the authors, is that business schools have adopted an inappropriate—and ultimately self-defeating — paradigm of academic excellence. Instead of measuring themselves in terms of the confidence and competence of their graduates, or by how well their facu lty members understand important drivers of business and industry performance, they assess themselves almost solely by the rigor of their scientific research.

Of greatest importance is the negligible acceptance rates of the peer-
reviewed journals, as opposed to the incredulous placement rates of thoughtful, engaging, insightful graduates.

So, perhaps it is no surprise that in 2005, more than 70% of fulltime MBA programs saw a decline in applications compared with 2004, according to the McLean, VA-based developer of the Graduate Management Admission Test (GMAT), the Graduate Management Admission Council. Students are not applying to as many programs as in the past. Applicants are more inclined to stay closer to home for school. And schools are reporting more part-time applications. This has led to a proliferation of courses at nights, on weekends and on-line/on-demand.

Despite the criticism, thousands still throng to business schools every year, and schools are continually trying to make themselves more desirable. By providing The Association to Advance Collegiate Schools of Business (www.aacsb.edu) accredited business and accounting programs, better campus environments and facilities, coaching and enhanced career services through firms like Advanced Career Development Incorporated (www.acdinet.com) and DBM (www.dbm.com), and global internships and co-op experiences, business schools have begun fiercely competing with one another for students.

Although there has been a slight downturn recently in applications for full-time programs, many schools are seeing an upturn in applications from foreign students, and are ramping up international recruiting efforts. But tougher US visa requirements imposed since the 2001 terrorist attacks are creating challenges for a number of international applicants. Of the countries supplying the most international applicants for MBA programs, Taiwan ranks first, followed by India, South Korea, Thailand, Japan, Mexico and Turkey. The number of GMAT tests taken in the United States during the first nine months of calendar year 2005 decreased 1.39% compared with testing volume during the comparable period in calendar year 2004. Outside the United States, testing volume increased 7.85% during the period.

MBA trends in the US

66%: Portion of MBA students in part-time or executive programs.
33%: Portion of students under 25 taking the GMAT, up from a low of
28% in 2002.
70%: Portion of programs reporting a drop or no change in international applications, compared with 82% in 2004.
33%: Portion of programs reporting an increase in applications from women, up from 22% in 2004.

So how do you choose a program that is right for you? Thankfully, criticisms like those of Bennis and O’Toole, and an increase in competition between schools, means more choices for prospective students. And there is no better method of finding the right school than shopping around. Use online resources like The Princeton Review’s Best 237 Business Schools, (www.princetonreview.com) or BusinessWeek Online’s B-Schools profiles and rankings (www.businessweek.com/bschools) to begin your search. Then, shop your options.

Are you looking, like so many today, for a part-time program? Do you travel extensively and might you benefit from an online-only MBA program? Do you have five to 10 years’ professional experience that might qualify you for an executive format program? Might your employer offer an in-house MBA program partnering with a local B School? If you have the time and resources and are seeking a full-time, residential program, carefully examine major/concentration alternatives, from accounting to entrepreneurship, from family business to real estate. Look carefully at faculty experiences and career placement support and success. Talk to alumni, visit campuses if you can, ask questions and write down the responses. As an educated academic consumer, you can and will make the decision that is right for you and your career aspirations.

Ultimately it’s about connecting… connecting with gif ted, committed faculty, and with your peers and colleagues in the MBA program. Faculty will coach, mentor, teach and guide, while your peers will challenge, compete and motivate you to performance levels you might never have expected. Ultimately, you will find the program that’s right for you.