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© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
Global and Canadian Trends in Graduate Management Education
Alex Chisholm
Senior Director, Research
Graduate Management Admission Council®
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
Prospects
GMASS and GMAT
Examinees
Applications
Grads/Alumni
Recruiters
12k prospective
students
3k grads111 universities
20 countries
20k alumni
748 employers47 countries
650 programs306 universities
B-School Insight from GMAC
190kGMAT examinees
400k candidates
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
0 vs. 2
31.4 vs. 36.5
Canada Specifics
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
Canadian Residents
• 8k GMAT exams, 6k unique examinees
• 17k score reports sent
• 802 mba.com prospective student survey respondents
Student Interest in Canada
• 25k GMAT score reports sent to Canadian business schools
• 8.5k domestic prospects
• 16.5k international prospects
Canadian Schools
• 20+ schools participate in our survey research, including Application Trends, Graduates/Alumni, and/or Corporate Recruiters
Canada Specifics
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
Thank You gmac.com/SurveySignUp
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
I. B-School Demand and Mobility Trends
Application Trends and TY2015 GMAT data
II. Student Segments
Specialized Master’s Candidates | Women | Millennials
III. Topical Trends
Debt | Digital Disruption | Differentiation
Today’s Topics
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
The MBA field today has a decidedly non-academic air of marketing and product experimentation, with universities:
• battling to woo students with shorter degrees
• novel programs
• alluring opportunities for foreign travel
• and new high-tech buildings.
The Global GME Market Today
Big
Global
Diverse
Canada’s MBA problem
April 2015
“
”
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
B-SCHOOL DEMAND & MOBILITY TRENDS
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
0%
25%
50%
75%
100%
2009 2010 2011 2012 2013 2014 2015
Full-Time MBAs
FT MBA 2-Year FT MBA 1-Year
0%
25%
50%
75%
100%
2009 2010 2011 2012 2013 2014 2015
Professional MBAs
PT MBA EMBA Online MBA (US Only)
0%
25%
50%
75%
100%
2009 2010 2011 2012 2013 2014 2015
Specialized Masters
MiM MAcct MFin
Source: GMAC Application Trends Survey Reports. 2009 through 2015.
Application Trends% of Global Programs Reporting Growth
50%/50% split in Canada forFT MBA programsin ‘15
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
0
1,000
2,000
3,000
4,000
5,000
6,000
Unique GMAT Examinees in Canada
Canadian Citizens International Candidates
GMAT Trends in Canada
ProvinceTY
2015% of
countryCAGR
since ’11
Ontario 3,461 57% -3%
Quebec 842 14% -2%
British Columbia
675 11% -8%
Alberta 639 11% -2%
Nova Scotia 148 2% -3%
Unique Examinees Residing in Canada
• TY2007 | 5,971• TY2011 | 7,052• TY2015 | 6,085
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
Nearly 190k individuals take the GMAT186,868 Unique Examinees in TY2015 | 247,432 Total Exams
Canada6,085 Examinees-4% Compound Annual
Growth Rate Since ‘11Europe
19,834 (-1%)
Mexico &Latin America4,660 (+3%)
Middle East& Africa
8,003 (-5%)
Asia-Pacific60,849 (+4%)
Source: GMAT® Examinees by Region of Residence
Led by India (MBA/PGD
demand) &China (specialized
masters)
Now stabilizing
Specialized master’s , MBA
Many smaller, emerging
markets growing
United States 87,437 (-8%)
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
26 Countries at 9-Year GMAT Testing Highs in TY 2015
Emerging Student Pipelines
Source: Unique GMAT examinees by country of residence where examinees is 50 or greater in TY2015.
Ignores TY2012 due to IR spike.
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
5. India
• 8k individuals18k scores
4. Canada
• 9k individuals25k scores
3. France
• 12k individuals20k scores
2. United Kingdom
• 14k individuals25k scores
1. United States
• 107k individuals 438k scores
Canada as leading talent destination
Top Talent Sources
Canada: 32%
India: 25%
China: 19%
Nigeria: 3%
Pakistan: 2%
United States: 2%
Iran: 1%
Bangladesh: 1%
Brazil: 1%
Mexico: 1%
Top Talent Sources
United States: 55%
China: 14%
India: 13%
Canada: 1%
Taiwan: 1%
Korea, South: 1%
Saudi Arabia: 1%
Brazil: 1%
Mexico: 1%
Vietnam: 1%
“I could easily enroll 300
students if I was willing to have half of my class
be from China or India.” - Dean of Canadian School
Canada’s MBA Problem
Top 5 GMAT Score-Sending Destinations, TY2015
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
Study Destination Criteria
Europe Asia Canada United States
1 Reputation of the educational system: 72%
Reputation of the educational system: 63%
Reputation of the educational system: 68%
Reputation of the educational system: 68%
Study Destination Criteria by Preferred Destination
2Improved chances of having an international career: 56%
Better preparation for career: 44%
Improved chances of having an international career: 43%
Better preparation for career: 48%
3To develop an international network of peers: 47%
Affordability of education/tuition fees: 42%
Attractiveness of location: 43%
Attractiveness of location: 44%
4Better preparation for career: 47%
Improved chances of having an international career: 38%
Better preparation for career: 43%
Improved chances of having an international career: 34%
5 Attractiveness of location: 46%
Availability of financial aid: 36%
Affordability of education/tuition fees: 37%
To develop an international network of peers: 31%
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
Why Canada?
Canadian Candidates
1. Reputation of the educational system: 62%
2. Attractiveness of location: 48%
3. To be near relatives/family living in the country: 44%
4. Affordability of education/tuition fees: 40%
5. Better preparation for career: 32%
6. Improved access to jobs in my home country: 29%
International Candidates
1. Reputation of the educational system: 71%
2. Improved chances of having an international career: 62%
3. Better preparation for career: 50%
4. To develop an international network of peers: 47%
5. Attractiveness of location: 40%
6. Ease of obtaining a work permits: 40%
Study Destination Criteria for Those Preferring Canada
Only 18% of international candidates who prefer US as study destination say ease of obtaining a work permits is a key criteria
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Graduate business, management, and public administration enrollments
in Canada, 2nd Cycle
Canadian Citizens International Students
GME Enrollments up in Canada
Total Enrollments: 35k annual GME enrollments, up from 22k in 2001
Market Share: 23% of masters enrollments are GME students – flat from ‘00
Women: 51% of GME enrollments are women, up from 45% in ‘00
Part-time: Roughly half of GME enrollments are part-time (stable)
Internationals: 16% of GME enrollments are international students, ranges from 12 to 17% since ’00
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
-247,585
-132,129
-300,000
-250,000
-200,000
-150,000
-100,000
-50,000
0
50,000
100,000
150,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Cumulative Change in Canada’s Student Age Population from 2015
20-24 year olds 25-29 year olds
The Domestic Pipeline Will Decrease
The student age population in Canada is expected to decline from 4.7m to 4.3m from 2015 to 2025.
Its two leading international pipelines are heading in opposite directions:• India: 213m to 231m
(+17m, +8%)• China: 228m to 162m
(-67m, -29%)
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved.
CANDIDATE SEGMENTS
Specialized Master’s Candidates | Women | Millennials
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
Specialized Master’s Spotlight on Canada
17% Percent of scores
sent by Canadian residents, up from 10% in ‘07
21% Percent of scores
received by Canadian schools, up from 10% in ‘07
Specialized Master’s CandidatesDemand for non-MBA masters degrees has grown
% of GMAT scores sent to specialized master’s degrees
by region of residence
56%
40%
23%17%
Europe Asia-Pacific UnitedStates
Canada
TY2007 TY2015
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
Specialized Master’s CandidatesThe Distinct Specialized Masters Pipeline
A: Not today, what about tomorrow?
Q: Are specialized master’s programs cannibalizing the MBA pipeline?
Specialized Master’s
Candidates
Characteristics of Global GMAT
Score-SendersMBA
Candidates
60% % Younger than 24 25%
47% % No Work Experience 16%
49% % Women 38%
67% % Business Undergrad 44%
GMAT Score-Senders to Canada
61% % Younger than 24 20%
49% % No Work Experience 10%
56% % Women 35%
62% % Business Undergrad 37%
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
… AND MBA Tomorrow
… OR MBA Tomorrow
… AND Something Else Tomorrow
Specialized Master’s CandidatesStepping Stones or Substitutes?
Specialized Masters Today…
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
15%
33% 32%
41% 40%36%
44%
27%32%
Accounting Masters Finance Masters Management Masters
Graduate Degree Earned
Likely Uncertain Unlikely
Specialized Master’s CandidatesWhat Today’s Graduates Say
How likely are you to consider an MBA now that you’ve earned a specialized masters?
Source. GMAC Graduate Management Education Graduates Survey (GMEGS) 2014 and 2015 results. 7 point scale with likely/unlikely computed by top2box.
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
39.5%All Examinees
43.0%
37.8%MBA
Score-Senders
37.6%
46.6%
Specialized Masters Score-Senders
49.2%
TY2007 TY2008 TY2009 TY2010 TY2011 TY2012 TY2013 TY2014 TY2015
Women as % of GMAT Examinees
WomenLarger presence in specialized masters group
Source: GMAT testing data. TY2007-TY2015
Region of Residence
MBASpecialized
MastersE/SE Asia 53% 68%
Africa 41% 46%
Middle East 39% 39%
Eastern Europe 38% 50%
United States 38% 45%
Canada 38% 47%
Western Europe 33% 39%
Australia-Pacific 31% 35%
LATAM 28% 37%
C/A Asia 27% 33%
% Women by
Region of Residence
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
30%28%
30%32%
19%21%
24%26%
12%
16%18%
22%
2000 2005 2010 2015
Financial Times Ranked FT MBA Programs: % Women
WomenOn-campus presence is slowly growing
Students
Faculty
Board
Source: Financial Times FT MBA Ranking Data. 2000-2015.
Key Question: How do we leverage high female participation at the undergraduate business level and ensure that GME is equally as welcoming?
6 Canadian Schools in 2015
Students: 33% (29% to 42%)Board: 28% (13% to 50%)Faculty: 27% (23% to 33%)
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
MillennialsPopular opinion
Volunteer work
Community
Politics & public life
Non-profit employment
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
Region of Residence CommunityVolunteer
WorkPolitics &Public Life
Africa 6th 12th 14th
Canada 11th 12th 13th
Central & South Asia 11th 10th 13th
East & Southeast Asia 9th 12th 13th
Eastern Europe 10th 13th 12th
LATAM 11th 12th 13th
Middle East 10th 12th 13th
United States 9th 12th 13th
Western Europe 11th 13th 12th
MillennialsHow about our millennials?
Rank out of 14 psychographic items: Millennials
Source: mba.com Prospective Students Survey 2014-2015
Financial Security
2nd
1st
2nd
4th
2nd
2nd
2nd
1st
3rd
Career & Work
1st
2nd
1st
1st
1st
1st
1st
2nd
1st
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
0%
20%
40%
60%
80%
100%
Psychographic Items Asked - Percent Selecting Important (%)
Millennials Gen X and Boomer
MillennialsGenerational divides?
Less Important Very Important
+8%
+3%
+10%
-5%
Source: mba.com Prospective Students Survey 2014-2015
-5%
+13%
+7%
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
MillennialsIntended post-GME industry
Millennials
• Consulting services: 19%
• Investment banking: 19%
• Management consulting: 19%
• Banking: 18%
• Finance & insurance: 14%
Gen X and Boomers
• Consulting services: 14%
• Management consulting: 13%
• IT or services: 10%
• Education/Ed services: 10%
• Banking: 9%
Top Five Intended Industries
#16 Government 7%
#20 Non-Profit 6%
#7 Government 8%
#9 Non-Profit 7%
Key Questions
• Where do business school prospects fit in the Millennial hype?
• Are we missing out on a more “typical” segment of the younger
population or does that really exist?
Source: mba.com Prospective Students Survey 2014-2015
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved.
TrudyWorld Vision | MBA ‘13
worldvision.com/donate
“engage with senior management through deeper understand of strategy and financial management”
“understand of how social-political-economic realities/challenges across various regions impact my work in the humanitarian industry”
My MBA helped me…
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved.
TOPICAL TRENDS
Debt | Digital Disruption | Differentiation
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved.
MBA Sticker Shock
Nearly 60% of recent GME graduates have debt….
2-Year FT MBA programs grads had greatest average debt levels: US$50k
• EMBA: $41k• FT MBA 1-Year: $40k• Other GME Masters: $37k
Region of Residence
% with Debt
Median Amount (US$)
Global 59% $45k
Central & South Asia 67% $30k
United States 65% $50k
Europe 41% $46k
East Asia & Pacific 38% $34k
“Student debt increasing by $1 million per day [in Canada].” Canadian Federation of Students
“Canadian students are seeing theirfinancial obligations grow fasterthan income. ”Huffington Post 2014
Debt Consequences• Double-debt calculations• Less likely to start a business*• Less likely to be “thriving”*
Source: GMAC 2013 Graduate Management Education Graduates
Survey. * Gallup survey 2014
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
Tuition Capitulation
Tuition Cutting
Fully Fund Everyone
Partner ata Discount
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
Old: Knowledge Creation & Knowledge Hoarding
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
New: Knowledge Dispersion
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
I’d characterize a MOOC as …Asia-
Pacific
Central
AsiaCanada Europe
United
States
A way to explore a personal interest 56% 58% 66% 60% 63%
Source: mba.com Prospective Student Survey. Preliminary data from respondents in 2014.
Roughly 50% of global prospective students know what MOOCs are.
Digital DisruptionWhat Prospects Think of MOOCs
A method to gauge my interest in a topic area 47% 48% 45% 48% 48%
A professional development tool 30% 46% 49% 37% 47%
Preparation for a GME program 38% 31% 23% 25% 27%
Alternative to GME 24% 9% 11% 14% 12%
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved.
What role will technology play?
Desired online component (%) by preferred degree type
• Online MBA: 89%
• EMBA: 28%
• Finance: 24%
• Acct: 23%
• MiM: 21%
• FT 1-Year MBA: 20%
• FT 2-Year MBA: 16%
Source: 2015 mba.com Prospective Student Survey
% considering online MBA programs by region of residence
Differentiate on Delivery United States 21%
Canada 16%
LATAM 8%
Western Europe 6%
Asia 4%
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved.
Differentiate on Content
North America is a saturated market for MBA programs, and most now have to start targeting niche markets with specialized courses.
Dean of Canadian B-School Canada’s MBA problemApril 2015
“
”
Data Analytics
8% of global GME prospects consider
Masters in Data Analytics programs, 6% in Canada
Source: GMAC 2015 mba.com Prospective Student Survey and 2015 Corporate Recruiters Survey.
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
Data AnalyticsOpening the Black Box
“Big data is like teenage sex: everyone talks about it, nobody really
knows how to do it, everyone thinks everyone else is doing it, so
everyone claims they are doing it.”
- Professor Dan Ariely, Duke University
Data Profit/Success
• Big data• Predictive analytics• Segmentation• Etc…
Key Question: How can business schools educate talent to help organizations actually implement “big data” solutions?
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
Segmenting by career goals
Career Enhancers Career Switchers Aspiring Entrepreneurs
34% 38% 28%Percentage of global respondents
EntrepreneurshipNearly 3 in 10 prospects are considering
Source: GMAC 2015 mba.com Prospective Students Survey
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
44% 43% 42%
28% 27%23%
21%
0%
10%
20%
30%
40%
50%
LatinAmerica
CentralAsia
MiddleEast/Africa
Europe Asia/PI Canada UnitedStates
Interest in Post-Degree Entrepreneurship
by Region of Residence
2010 2011 2012 2013 2014
EntrepreneurshipMore prospects worldwide are interested
Source: mba.com Prospective Students Survey 2010-2015
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
5% of 2015 graduates pursuing entrepreneurial careers
Why?
EntrepreneurshipMany are interested, fewer act
Importance of GME in helping… 2015
Lead my company 82%
Grow my business 81%
Develop an idea 77%
Develop financial projections 75%
Conduct market research 74%
Write business plan 70%
Contact with potential customers 68%
Write marketing plan 68%
Secure financial resources 67%
Create human resource plan 61%
Key Question: How can we position business school as a developer of entrepreneurs and not a delay of entrepreneurship?
1. Passion for what they do: 90%
2. Autonomy: 86%
3. Revenue Potential: 81%
4. Flexibility: 79%
5. Control: 78%
Source: GMAC Graduate Management Education Graduates Survey 2015
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
EntrepreneurshipWhere does business school fit in?
"If you're an entrepreneur and have passion, the hell with more education!”- Jack Welch
Most MBAs do not have any startup experience,
& founders won’t be impressed if you won your
business plan competition during school.
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
How Does GME Stay Relevant?
“With more than 40 universities
offering MBA degrees in Canada –
plus hundreds more in the United
States – there are growing
questions about whether MBA
schools can guarantee high job
placement rates to lure students
into paying as much as $95,000 for
an education, and whether they
can maintain their lustre in the
eyes of the business community.”
Canada’s MBA Problem
© 2015 Graduate Management Admission Council® (GMAC®)
The Value of GME Remains High
97% 96% 95% 95% 95% 94% 92% 84%
FT MBA 2-Year
MiM EMBA OnlineMBA
MAcct FT MBA 1-Year
PT MBA MFin
% of GME alumni reporting value as good, excellent, or outstanding
Source: GMAC 2015 Alumni Perspectives Survey. GMAC Graduate Management Education Graduates Survey 2015
93% 92% 91% 90% 90% 90% 86% 84% 74%
Faculty Curriculum Programreputation
Admissions Programstructure
Fellowstudents
Programmanagement
Studentservices
Careerservices
% of 2015 GME graduates reporting value as
good, excellent, or outstanding
© 2015 Graduate Management Admission Council® (GMAC®)
The Post-GME Value Chain
Individuals
• Personal
• Professional
• Financial
Companies
• Competitiveness
• Profitability
• Staying power
Society
• Economic growth
• Development
• Improved standard of living
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015
THANK YOUAlex Chisholm
gmac.com/research