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