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 masters 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