20th anniversary edition

Transcription

1 20th anniversary edition Making the right choice of executive education George Bickerstaffe The following is extracted from the 20th edition of Which MBA? The full version includes details on different delivery methods, such as part-time, distance-learning and executive MBAs. It also provides in-depth profiles of 120 major business schools, including a full breakdown of schools rankings. The book is available from the Economist bookshop at:

2 Have you got what it takes to be a world-class leader? 90 exceptional people experience the IMD MBA each year. Launch yourself into the challenge of this intensive, one-year leadership development program: a life-changing experience. Are you: Bright, successful, on the fast track, wanting to make it to the top? A young, experienced international manager with a global mindset and a burning ambition to lead? Ready to think outside the box and driven by the desire to make a difference? If so, IMD is the place for you. Visit us at: tel: fax: mbainfo@imd.ch IMD International Institute for Management Development Chemin de Bellerive 23, PO Box 915, CH-1001 Lausanne, Switzerland

3 The Economist Intelligence Unit The Economist Intelligence Unit is a specialist publisher serving companies establishing and managing operations across national borders. For over 60 years it has been a source of information on business developments, economic and political trends, government regulations and corporate practice worldwide. The EIU delivers its information in four ways: through our digital portfolio, where our latest analysis is updated daily; through printed subscription products ranging from newsletters to annual reference works; through research reports; and by organising conferences and roundtables. The firm is a member of The Economist Group. London New York Hong Kong The Economist Intelligence Unit The Economist Intelligence Unit The Economist Intelligence Unit 26 Red Lion Square The Economist Building 6001, Central Plaza London 111 West 57th Street 18 Harbour Road SW1R 4HQ New York Wanchai United Kingdom NY 10019, US Hong Kong Tel: (44.20) Tel: (1.212) Tel: (852) Fax: (44.20) Fax: (1.212) /2 Fax: (852) london@eiu.com newyork@eiu.com hongkong@eiu.com Website: Electronic delivery This publication can be viewed by subscribing online at Copyright 2008 The Economist Intelligence Unit Limited. All rights reserved. Neither this publication nor any part of it may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the Economist Intelligence Unit Limited. ISBN-13: British Library Cataloguing in Publication Data. A catalogue of this publication is available from the British Library. The authors of EIU Research Reports are drawn from a wide range of professional and academic disciplines. All the information in the reports is verified to the best of the authors and the publisher s ability, but neither can accept responsibility for loss arising from decisions based on these reports. Where opinion is expressed, it is that of the authors, which does not necessarily coincide with the editorial views of the Economist Intelligence Unit Limited or of The Economist Newspaper Limited Printed and bound in Great Britain by Halstan & Co Ltd., Amersham, Buckinghamshire.

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5 Contents The MBA: riding out a storm 9 What you ll learn core and elective subjects 17 What you ll learn soft skills 23 Full-time rankings 28 TheBath MBA

6 Do your MBA where the world does business Invest in an MBA at Cass, and you ll be putting your money where the world s business elite put theirs. From our home in the City of London, we give our MBA students the best overview of the current thinking and practice of the world s leading global businesses that make the City their home. It s the most thrilling, total immersion field trip designed to equip you for the real world. Whether you choose a 12 month full-time MBA or two year part-time Executive MBA, you will gain both the theory and practical skills to do business at the very highest level. Find out more at a Cass MBA information session in London or meet us at a city near you. Call us on +44 (0) , visit or cass-mba@city.ac.uk

7 Acknowledgements We would like to thank all the business schools that filled in our lengthy questionnaire and encouraged their students and graduates to complete the separate questionnaire designed for them. Thanks, too, to those schools that made available for interviews their faculty, administrators and students during our editorial visits or took the time to visit the Economist Intelligence Unit offices in London. Lastly, we are grateful to all the students and graduates who contributed valuable comments on schools and programmes. BUSINESS, ECONOMICS AND FINANCE FOR GLOBAL LEADERSHIP PIONEERS IN GLOBAL MARKETS We teach state-of-the-art theory, immerse students in international experiences, and connect them to best practice in business and policy. INTERNATIONAL TO THE CORE Our students come from Europe, Asia, Africa, and Latin America, and international experiences are built into our programs in partnership with major foreign schools and companies. EMPLOYMENT We have a strong record of placing our students in leading corporations and public sector institutions across the globe. CONNECTED TO BUSINESS Many senior executives visit the School each semester through our CEO, Entrepreneurs, Corporate Responsibility and Real Estate forums. BOSTON: A GREAT PLACE TO LIVE AND STUDY Brandeis is in Boston, home to eight major research universities and to 250,000 students. ADMISSION@LEMBERG.BRANDEIS.EDU

8 Financially, they say the nice decade is over This financial approach worked when the markets were favourable A typical conversation on the MBA at the University of Edinburgh Business School: people bouncing ideas off each other. Agreeing. Disagreeing. Expanding arguments. Innovating. It s a never-ending network of stimulating discussion from students from all over the world. But it s not the only network. Edinburgh is one of the major financial and commercial centres in the UK. Our network of business contacts provides you with a unique opportunity that puts you right at the heart of business. And when you talk about unique, think Edinburgh the city: named the best place to live and work in the UK and the second most visited place outside London. Host of the largest arts festival in the world. With a strong career and personal development programme, the chance to develop the skills to communicate your ideas, an Edinburgh MBA is like no other. It provides an unrivalled network you can tap into a network from where your career can really take off. The University of Edinburgh is a charitable body, registered in Scotland, with registration number SC JOIN THE NETWORK by visiting That s where risk management becomes crucial But that approach led to exposure to risks no-one really understood The University of Edinburgh Business School holds both EQUIS and Association of MBAs accreditation.

9 The MBA: riding out a storm In the 20 years since Which MBA? was launched the MBA degree has seen many ups and downs, many booms followed by inevitable busts. Through it all the MBA has proved itself remarkably resilient, capable of adaptation and reinvention, matching its structure and the skills it teaches to the demands of the time. At the moment it is going through yet another turbulent period as the global credit crunch and rising oil prices have forced recruiters to scale back hiring plans. However, yet again this does not as yet at any rate seem to have dented enthusiasm for the MBA, among either potential students or recruiters of MBA graduates. The number of GMAT tests being taken (always a good proxy of interest in taking an MBA since almost all business schools require it) in the first five months of 2008 rose by 11% compared with the same period in The MBA job market The job market for current MBA graduates also looks bright. In the Economist Intelligence Unit s 2008 survey of business schools for Which MBA?, careers offices helped place, on average, 90% of their students in jobs within three months of graduation; and over half of the students we surveyed had received more than one firm job offer. Despite rising tuition fees, the MBA still offers a more-than-reasonable return on investment. Graduates on full-time programmes can expect a basic salary increase of 83% compared with their pre-programme jobs. The average basic salary of a full-time graduate at the schools we surveyed was US$93,972 a rise of almost 10% compared with last year. In Europe, where students tend to have more work experience, the average salary broke the US$100,000 mark. Even in North America, which has seen a swathe of job cuts in the financial services sector a key recruiter of MBAs salaries were holding up well, with many schools reporting steady increases on last year. Table 1.1 Average starting salaries of recent MBA graduates Salary, US$ % increase on pre-mba salary World 93, Asia & Australasia 74, Europe 106, North America 89,

10 The MBA: riding out a storm Table 1.2 Average starting salaries of recent graduates from selected schools School Salary, US$ % increase on pre-mba salary Asia & Australasia Macquarie 121, Otago 112, Melbourne 98, Monash 95, Curtin 95, Hong Kong UST 78, Queensland 71, Indian Institute (Ahmedabad) 59,879 n/a Japan 59, Hong Kong SB 57, North America Harvard 115, Pennsylvania (Wharton) 110, MIT (Sloan) 107, Dartmouth (Tuck) 107, Columbia 107, Northwestern (Kellogg) 104, Chicago 103, California at Berkeley (Haas) 101, Virginia (Darden) 100, New York (Stern) 100, Europe Ashridge 209, Henley 156, Warwick 134, HEC Paris 132, IMD 130, Oxford (Saïd) 130, Audencia (Nantes) 127, City (Cass) 127, UC Dublin 123, Strathclyde 120, Note: Guaranteed base salaries of graduates. Increase compared with pre-mba salary. Local currencies converted using average exchange rates for 2008: US$1 = A$1.2, 0.73, HK$7.80, 0.5, NZ$1.36, Rs41.35, S$1.51,

11 The MBA: riding out a storm Where the jobs are and where graduates want to go Not that salary is the be-all and end-all for MBA graduates. They are typically more likely to consider things such as career or personal development than merely remuneration. They are also becoming more inclined to put a greater emphasis on issues such work life balance or a company s ethical background. One way that this can be seen to manifest itself is in the number of schools that are placing students in not-for-profit organisations 80% in our most recent survey. Impressive though this is, as Table 1.3 shows it is still well below the more traditional recruiters, such as consulting or finance. Table 1.3 Industry sectors recruiting graduates from the most recent graduating full-time MBA class Sector % Consulting, professional services 98.3 Banking, finance 96.6 Technology, media, telecommunications 94.1 Industry, engineering, manufacturing 93.3 Consumer, retail 91.6 Pharmaceuticals, healthcare 87.4 Non-profit, public sector 79.8 Entertainment, publishing 63.0 Are recruiters happy hirers? The relatively benign jobs outlook for MBA and other business graduates reflects widespread employer satisfaction with MBA recruits. Employers are said to especially value business school graduates for their management knowledge and communications skills as well as the technical and quantitative skills typical of MBA graduates. Recruiters point to experience with earlier MBA hires to back up their sense that the MBA is a valuable credential worth paying for. A survey by the Graduate Management Admission Council found that the majority, 83%, said they were very or extremely satisfied with employees who have MBAs. Nearly all the employers said they strive to provide challenging and interesting assignments in an effort to retain the people they hire. 11

12 The MBA: riding out a storm MBA: A brief history Though often thought of as a modern phenomenon and frequently associated with the heady days of the 1980s boom and the dotcom crash of the late 1990s, the MBA is an old qualification. It first appeared in the US over 100 years ago, developing from the accounting and book-keeping courses introduced as the country lost its frontier image and began to industrialise. It was modelled on the standard American two-year postgraduate academic programme and most students enrolled straight after taking a first degree. This model won rapid acceptance and spread quickly. However, half a century later, MBA programmes were being attacked for a lack of academic rigour and poor relevance to business issues. Two damning reports appeared in 1959, condemning American graduate management education as little more than vocational colleges filled with second-rate students taught by second-rate professors who did not understand their fields, did little research and were out of touch with business. Business schools responded rapidly, raising both their admissions and teaching standards and establishing the now well-known American emphasis on academic research. The overall effect was the creation of the classic American MBA model: a first year of required core courses to provide a grounding in the basics of management, and a second year of electives to allow specialisation or deeper study. At the same time, interest in management education was growing in Europe, especially in the UK, which was looking for an antidote to its economic and industrial decline. Business schools, intended as centres of excellence and modelled closely on American schools, particularly Harvard, were created within the universities of London and Manchester. The result was not greeted with enthusiasm. It has long been argued that the UK was wrong to copy a system that was then fairly new and was itself a response to particularly American problems. The insistence on an academic regime meant that business schools might ignore the contribution that business itself could make. This division of opinion between academic and industry-leaning business schools continues today. Not all institutions in Europe copied the American model. IMD, INSEAD, Henley and Ashridge were all started by groups of companies to provide management training. In France, the local and regional chambers of commerce played a big part in establishing and supporting business schools. The early 1990s saw a new wave of criticism of MBA programmes, this time focused on a supposed lack of relevance to modern business. The MBA was said to be too academic, too theoretical and divorced from real-life business practice. MBA graduates were criticised for adopting an analytical and quantitative approach to business issues when companies needed managers with more diffuse skills, such as leadership. Faculty were said to lack business experience and to be more interested in research than in providing business solutions. If anything, this criticism has intensified during the early years of the 21st century. It has led schools, particularly in North America, to make further changes to the MBA programme design and curriculum, adding courses on so-called soft skills such as communications, leadership and interpersonal relations. Other factors are also driving change. Recruitment of MBA graduates by management consultants and financial services has been in decline for some years and there has been a need to develop other job markets. The globalisation of business has made many of the MBA programmes in the US (where business schools were busy satisfying a huge domestic demand) look increasingly parochial. US schools also face increased competition from their European counterparts, which, because of the international nature of European society and the closeness of most schools to industry, are already meeting some of the criticisms. 12

13 Lyon, France EDUCATING ENTREPRENEURS FOR THE WORLD Are you an entrepreneur at heart? Here s the right MBA for you! INTERNATIONAL MBA According to our participants, it is the combination of the year-long consulting project, the large diversity in student body and faculty, and the strong focus on entrepreneurship that makes our 12-month International MBA programme so uniquely suited to meet their needs. If you are looking for a dynamic learning experience that allows you to develop your entrepreneurial skills, it might be just the right MBA for you too! CONTACT US +33 (0)

14 All this space and nowhere to hide. Set in over 150 acres of English parkland just a half hour journey from London Ashridge has all the space you ll need to prepare for future leadership. Yet, for a world-class business school, we offer a surprisingly intimate learning experience. In a class of just 30 experienced professionals, you can expect high levels of personal participation and individual attention from your tutors. There s nowhere to hide. The Ashridge One-year Full Time MBA starts in January. The Ashridge Two-year Executive MBA starts in September. Experience the programme for yourself at our MBA in a Day, which takes place at Ashridge six times a year. The Ashridge MBA. It s personal. To book your place or for more information call: +44 (0) visit: mba@ashridge.org.uk Registered as Ashridge (Bonar Law) Memorial Trust. Charity number

15 What you will learn core and elective subjects MBA programmes generally break down into hard and soft skill sets. Chapter 3 looks at how soft skills (such as negotiation, communication and leadership) are taught. This chapter examines the harder topics such as functional subjects and analytical tools. The core In most programmes hard topics are split into two groups: required courses, usually known as the core, that nearly all students must take; and elective, or optional, subjects that students can follow because they have a particular interest or career ambitions. The core is studied early in the programme and electives later. However, these are changing times for the MBA, and the traditional core is under pressure. As outlined in more detail in Chapter 3, recruiters now assume that the hard subjects are well taught and their real interest is in students competence in the more hard-to-define soft skills, and that the real differentiator between schools is their ability to design and deliver these. As a result there are now almost as many soft skill subjects included in the core. In contrast, hard subjects are coming to be seen almost as a commodity fairly standardised and taught equally well in most business schools. However, while the core is far from a definitive list of hard subjects, there is a general consensus on what it should contain. It reflects the original aim of the MBA degree, which was to give students an overall understanding of the many functional areas of a business so they could become good general managers. Although they may have different names and some may be bundled together, the subjects are generally those described below. Financial accounting Financial accounting provides students with the technical skills needed to obtain economic and financial information about a company from publicly available sources such as annual accounts. Students learn how to process this information and act accordingly. Generally, the subject is taught from the perspective of users of the information, not its preparation by qualified accountants and auditors. Managerial accounting Managerial accounting covers the use of accounting data for management decision-making. This includes areas such as budgeting, product costing, performance evaluation and transfer pricing (the costs attributed to goods and services sold within a multinational organisation, particularly across borders). There is also usually a special emphasis on incentives such as executive bonuses and the tax implications of various actions. 15

16 What you will learn core and elective subjects Finance Finance is the core of the core. The main aim is to teach the various financial tools that are available to monitor, control and project a firm s performance. Areas covered include forecasting techniques based on financial statement and ratio analysis, debt levels, capital structures, discounted cash flow and the cost of capital. Human resource management HR (as it is universally known) covers the role of human resources policy as part of the strategic planning framework of a company. Specific topics include recruitment and selection, promotion, career development, performance-based evaluation and compensation policies. Information management Information and communications technology (ICT) plays a key role in many business functions. This course generally looks at the issues involved in managing ICT, particularly choosing the right technologies for particular applications and business needs. Macroeconomics and microeconomics Now often called managerial economics, this course deals with the interaction of a company and its economic environment. Topics covered include supply and demand theory, market environments and the structure of markets. Marketing This course covers the basic principles of the marketing function. Topics usually include marketing planning, situation analysis, segmentation, targeting, positioning, the marketing mix and relationship marketing. Organisational behaviour Organisational behaviour (one of the softer of the hard subjects) provides an understanding of how an organisation works and the behaviour of groups and individuals within it. Topics covered include group culture, managing performance, developing a corporate vision and designing effective organisations. Operations management This course examines how to establish the processes that create a company s products and services. It also looks at ways of increasing competitiveness in terms of cost, speed, quality, innovation, flexibility and dependability. Strategy This course looks at how to develop the analytical tools needed to create successful strategies. These include analysing an organisation s competitive environment and learning how firms develop and sustain competitive advantage over time. Elective subjects At some business schools, particularly in Europe, core courses make up the bulk or even the whole programme. But in the longer two-year programmes, especially in the US, elective courses are an integral part of the programme that students must complete. 16

17 What you will learn core and elective subjects In the past, elective courses made up the second year of a two-year programme. But they are now increasingly being brought forward into the first year (another pressure on the traditional core programme). This is mainly so that students who want to change their careers can gain some knowledge of their preferred subject before beginning the all-important internship between the first and second years, when most permanent job offers are made. The ability to take an in-depth specialisation means that MBA programmes of this sort can be heavily customised to a student s own interests. However, students should be aware that business schools can sometimes be fickle about their elective offerings. The subjects offered may vary from year to year (elective courses are often used to try out new ideas or reflect the interest of a particular faculty member). Some electives may only be offered if there is enough student demand and popular electives may be oversubscribed. Some schools, especially in the US, have a bidding system to allocate places on as fair a basis as possible. You should make sure you know what a school s policy on electives is since these courses can have an important impact on career prospects. Whether you want to take a wide range of electives or specialise in one area, both the extent and the number of electives offered are important, as is a school s willingness to add extra classes if a particular subject becomes oversubscribed. Employers and core and elective subjects The design of core and electives courses offered by business schools is closely linked to the needs of MBA recruiters. According to the 2007 Corporate Recruiters Survey by the Graduate Management Admissions Council, academic achievement (acquired technical or quantitative skills, strong academic success and specialisations or concentrations of study) is one of the three key factors in hiring recent MBA graduates. The other two are leadership potential (as shown by an applicant s years of work experience, taking on increased job responsibilities, leading teams and managing people) and prior work experience. Employers say that an ideal hire with a graduate business degree should have on average five years of work experience, be ready to accept an entry-level position, and rise up in the company by deepening their understanding of the business and proving managerial competency. In other words, the dream job might better serve as a long-term goal to be reached gradually by making and implementing daily decisions (rather than throwing out big ideas); effectively managing a small team (rather than developing company-wide principles of workforce management); and, lastly, through getting the work done and positively affecting the company s bottom line. In addition, according to the survey, employers look for candidates with good job-hunting skills. MBA degrees do not exempt applicants from proper résumé preparation, follow-ups using perfect grammar and thorough research about the hiring companies before their interviews. Teaching methods The MBA is different from other academic qualifications in that it is part academic and part vocational and covers a wide range of subjects. The method of working is also different, a mix of noisy classroom debate, intense individual reading and small-group working. All this takes place in an atmosphere of high pressure caused by heavy workloads. 17

18 What you will learn core and elective subjects Three main methods of teaching are used in addition to traditional lectures: case studies (the method was adopted from law schools, hence the name); project work (undertaken outside the school); and group work (usually in sets of 3 6 people). Some schools use a mixture of all methods, some use only one or two and a few rely exclusively on the case method. But whatever the mix there will be a lot of group working. Other common activities include computer simulations, business games and role-playing. Case studies In the case-study method, all subjects, from accountancy and statistics to marketing and corporate strategy, are taught using examples drawn from actual companies experiences (occasionally cases may be fictitious, but they are always based on real-life events). These are usually framed as narratives. Some have a mass of supporting data, relevant and otherwise, and others have little. Students, like managers, are expected to respond based on what information is available. The virtue of this method is that it reflects the messy, cross-functional nature of business life, where problems are not clear-cut and there are no right or wrong answers. Schools that use the case method exclusively say that subjects such as accountancy can be taught via this method; others argue that it is best suited to broader areas such as marketing or strategy. The case method involves calling on a single student, or sometimes a group, to present to the class an analysis of the dilemma contained in the case and the recommended action. The subject is then thrown open to discussion in which objections are made, alternatives are offered and so on. Cases take a lot of time and resources to find, study and write. Few schools could write all their own cases even if they wanted to, and most use cases prepared by other schools as well as their own. Harvard Business School, an almost exclusively case-method school, is probably the most prolific source. The predominance of American cases from this and other North American schools provokes criticism elsewhere that the case method results in an inappropriate cultural bias. Another criticism, especially from employers, is that the case method develops a habit of concentrating on the overview of management problems rather than the detail of how to solve them. Nevertheless, case studies remain a stalwart part of MBA programmes throughout the world, if only because they stimulate class discussion and force students to think for themselves (and fast) about real business problems. Group working You do not take an MBA by yourself you take it as part of a group. Since real work increasingly involves multidisciplinary task-forces or teams, the schools want to emulate this. They also want to put students in situations where competing demands have to be resolved to get the job done. Some schools observe how students behave in groups and assess them accordingly, frequently awarding grades on a group basis. Groups work together on cases, presentations and projects. They are formed in the first term or semester and generally consist of up to six individuals, either assigned by the programme director or (more rarely) self-selected by the students. Assigned groups are deliberately designed to reflect diversity of background, experience, academic ability and even character. 18

19 What you will learn core and elective subjects Groups may be rotated at set intervals to allow individuals to work with as many of their classmates as possible. Although many students see group working as a useful and relevant experience, some complain vigorously about other group members, dislike the extra effort that group work involves and question its validity. In the busy schedule of an MBA programme, simply finding a time and place for all to meet can be difficult. Grades Students at US business schools usually have to achieve a required standard in each subject studied, typically a grade B or about 70%. Often this must be achieved as an average across all subjects. Grades can be awarded for course work, assignments, class participation, group work (where each student s mark depends on others in the group) and formal examinations. Some schools use a forced grading system, which means that, typically, 10% of students must get the lowest grade. Students with 45% of all their results in the lowest grade are in trouble. Schools in other parts of the world use a similar system, but with slightly more emphasis on examin ations. Forced grading is particularly unpopular, mainly because students say it encourages a highly competitive, unco-operative atmosphere. Wharton s new-style curriculum (1991) The third edition of Which MBA? (1991) announced the arrival of what it described as one of the most significant developments in MBA education in 30 years and one also hailed by Business Week as the MBA for the 21st Century. Here s what we said about Wharton s then new curriculum at the time: In general, Wharton s new curriculum builds on the School s traditional strengths in functional areas, but integrates them more effectively. It introduces new areas (such as geopolitics, innovation and entrepreneurship, and quality management), expands the School s global focus and develops stronger leadership skills. There are a number of innovations in both content and structure: team-taught, cross disciplinary cases, tightly-focused 6-week modules, new disciplines such as Technology and Risk and Crisis Management, and an intensive international study tour. To ensure that all students meet the demands of this accelerated programme, Wharton has developed a unique 4-week pre-entry programme that provides advance preparation in both technical skills and the humanities. 19

20 Choose BOOST YOUR CAREER AT GERMANY S LEADING BUSINESS SCHOOL Mannheim MBA As Unique as You Are Or is there another MBA that offers you the chance to individually design your MBA? choose from four regional tracks (German, Eurasian, Transatlantic, or European)? study at one, two, or three different business schools? learn from Germany s best business faculty? study with world champions in export and innovation? become 1 st choice for Human Resource Directors? For more information visit our website at send us an info@mannheim-mba.com or give us a call: +49 (0) Mannheim Business School ggmbh L 5, Mannheim Germany Global CEOs want our opinions now we d like yours If you believe that your opinions on business strategy are worth hearing, we d like to hear from you. The Economist Intelligence Unit is regularly consulted by major corporations who want our help preparing white papers and research reports. Recent sponsors have included Oracle, Cisco, KPMG, Mastercard and IBM. To produce these reports, we survey members of our global Decision-makers Panel a worldwide community of senior, experienced executives. Owing to the success of our sponsored research programme, we are now inviting further applications for panel membership. How we survey members Members take part in benchmarking surveys. They are occasionally interviewed directly. And they are invited to executive meetings surrounding the research. Participation is free, by invitation and completely at the discretion of the member. And members are free to opt out of the panel at any time. In a typical year, a member might receive invitations to take part in four to six surveys. With most taking around ten minutes to complete, the impact on the working day is minimal. The benefits of membership Members receive a number of benefits: Priority access to the findings of the survey to which you contribute. Each time you complete a survey, you will receive a free book from The Economist Bookshop. You also have free access to the online archive of previous reports, searchable by topic. You may be invited to attend meetings with other senior executives centred on the results of our research. Sponsored research, editorial independence As with all EIU publications, these reports are free from outside influence. Sponsors agree to pay for the research and allow the Economist Intelligence Unit to reach whatever conclusions it sees fit. In fact, it is precisely this editorial independence that they and the major companies who receive the finished reports value so highly.your opinions help shape the research findings in our wideranging programme of sponsored reports. Join now: If you would like to join the panel (the online application form takes around 45 seconds to complete) please visit An Economist Group business

21 What you ll learn soft skills Soft skills communications, teamwork, leadership and so on are the current buzz words of MBA programmes (though they have been around as an issue for longer than you might think see box). Business schools are now insisting that students add such courses to an already overcrowded curriculum because this is what recruiters say they want. In a recent Economist Intelligence Unit study, it was soft skills honesty, communication and people skills and not functional capabilities that topped the list of characteristics executives were looking for in their most talented young managers. One reason for this is that many recruiters (and business schools) believe that the main functional core courses taught at business school (see Chapter 2) are now virtually a commodity, with little difference in content or teaching methods (or skills) between schools. Adding soft skills to the curriculum is becoming a way for a school to differentiate itself from its competitors and attract the attention of recruiters. Approaches to soft skills teaching Of course, attributes such as leadership are not easy to teach. One of the first business schools to take this kind of training seriously was the University of Chicago s Graduate School of Business. Its LEAD (Leadership Effectiveness and Development) programme is a required firstyear MBA course and now takes up over 125 hours of a student s time. According to Chicago, the aim of LEAD is to improve students abilities to motivate people, build relationships and influence outcomes. It does this through role play, team building, and other creative activities and experiences. Interestingly, LEAD also offers a learning opportunity for some second-year students, who serve as course facilitators, presenting course material and coaching and mentoring first-year participants. IMD in Switzerland runs a similar course called Leadership and Personal Development, which combines outdoor activities, personal leadership development and study of organisational behaviour. IMD argues that outdoor exercises provide an effective method for developing leadership in that they allow the exploration of the deeper determinants of individual, interpersonal and group behaviour and offer the chance to explore openly behavioural factors which otherwise operate only in the shadows: the more you step out of your comfort zone, the more you will learn. Another element of the course involves students understanding their personal leadership style, how they interact with others and in what situations their strengths are most effective. This is done through in-depth self-analysis, with the use of personal coaching by a trained psychologist, personality tests, team-building exercises, study group feedback on individual strengths and weaknesses and leadership style, and group exploration of what makes effective leaders. This is then combined with the study of individuals and social systems through organisational behaviour to refine a leadership style. 21

22 What you ll learn soft skills Similarly, the new MBA curriculum at Stanford (see page 282) places a heavy emphasis on teaching leadership and other soft skills, bringing executives into the classroom to relate their experiences. Students take part in leadership simulations and other exercises, including assuming executive roles and being assessed by senior alumni. As this makes clear, not all soft skills can be imparted purely by business schools themselves. There is also a role for business in helping to inculcate the values, attributes and competencies it so loudly says that it is looking for. Business executives and recruiters need to be involved in management education themselves. There are many ways business schools are helping them to do this, including bringing in executives as adjunct faculty, student mentors or executives in residence. The second edition of Which MBA? (published in 1990 and written by Jane Rogers) surveyed MBA graduates, MBA recruiters and corporate HR specialists. Here s what the survey revealed about soft skills : There was considerable agreement about the key issues that MBA programmes should be addressing in the future. 39 per cent of the recruiters and 43 per cent of the personnel directors [HR specialists] thought that leadership was the most critical issue while a further 26 per cent of the recruiters and 31 per cent of the personnel directors thought that creativity and innovation were the second priority. This concern in human resources managers is not surprising after all, their job is to develop future managers, but it contrasts with the very limited way most MBA programmes view the topic. It is striking that many of the new programmes developed in conjunction with companies reflect this concern [while] flagship full-time programmes are way behind. Business schools tend to concentrate on other areas which are important such as internationalisation and management and control of information because these subjects can be fitted into the traditional academic mould leadership, creativity and innovation are altogether more messy. The issue that graduates thought was the most important for MBA programmes to address in the future was leadership followed by management and control of information. The graduates were also concerned about the management of change and a variety of people issues including people management, ethics, social responsibility and broadmindedness. The implication is that graduates were happy that functional areas and analytical skills were covered effectively in their programmes but that they had become aware of other needs once they were back in the workforce. In-company projects However, perhaps the most important element is the in-company project. This is a compulsory component of almost all MBA programmes, though the emphasis placed on it can vary. Some schools, especially in Europe, such as Trinity College (Dublin) and Ashridge, build almost the whole programme around projects. At Manchester Business School the so-called Manchester Method reflects the school s dedication to project work. Projects can help to instil some of the softer business skills, such as leadership and interpersonal relations. Elsewhere in Europe, the project often follows on from the taught part of the programme (and may well take place with little input from the school) and concludes with a lengthy disserta- 22

23 What you ll learn soft skills tion, reflecting the academic model of masters degrees in other subjects. Usually, students undertake such projects individually. In part-time and executive programmes, the project is often carried out within a student s own organisation and is promoted as a key value to sponsoring companies. Other schools, including many in the US, build smaller and shorter projects into the structure of the programme. This type of project normally consists of a consultancy-like task and is ideally of real value to the organisation in which it is undertaken. Students are divided into groups of 2 4 and conduct research both within and outside the company. They prepare a report and recommendations for action, which are often formally presented to corporate executives as well as to business school faculty. As part of their project work, students at London Business School (LBS) spend a week observing ( shadowing ) managers at work and attempting to build an objective profile of their management style. LBS says the shadowing project allows students to observe the challenges faced by managers, appreciate the real world of managerial work by testing academic theories against observed data, develop a deeper understanding of the relationship between managerial style and organisational context, and reflect on leadership values. Using practising executives Many business schools are assiduous users of executives not just as objects of research but also as adjunct faculty or at the very least as visiting speakers to address MBA students. In part their success in doing so depends on their location. Schools based in large financial centres such as London, New York or Shanghai usually have the most resources available. Columbia Business School in New York is a good example. As the school is not slow to point out, New York City acts as a living laboratory. Corporate stars are regular visitors on campus to meet students and often work with faculty on research and teaching. At Southern Methodist University (Cox) in the US, more than 200 executives and managers act as mentors to students on the MBA and other programmes. Students can view the mentors professional biographies online and then nominate them as potential mentors. Once they have met, student and mentor can decide how often they wish to get together and how the relationship should be structured. Executives in residence, who regularly teach courses or advise students, are particularly popular in North America. Mainly they serve for about year but it can be longer. 23

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25 Full-time rankings Why rank? The Which MBA? ranking of full-time MBA programmes is now in its seventh year. The reason we rank schools is straightforward: students demand it. If you are to pay tens of thousands of dollars for your tuition, it is only natural to seek some impartial judgement on the quality of the schools you are considering. Business schools themselves are slowly coming around to the idea of rankings too. It is fair to say that at first they were antipathetic to them after all, no one really likes to be graded by outsiders but now many recognise rankings as a legitimate tool for prospective students. (Many have come to see the rankings as effective marketing tool as well.) This is not to say that rankings are perfect. The rankings should form only part of a student s selection process. It is equally important to look at issues such as school culture, employment prospects and areas of speciality. Although the Which MBA? rankings do not seek to measure a school s reputation, this can also be important. To gain a rounded picture, it is essential to look at several different rankings. No two rankings will seek to measure exactly the same things, so be sure you understand the methodology of the survey and whether or not what is being measured is an important consideration for you. How is the Economist Intelligence Unit ranking different? The ethos behind our ranking is simple. For well over a decade the Economist Intelligence Unit has been surveying students about why they decided to take an MBA. Four factors consistently emerge: to open new career opportunities and/or further current career; personal development and educational experience; to increase salary; the potential to network These are the basis of our ranking. The Economist Intelligence Unit ranks full-time programmes on their ability to deliver to students the things that they themselves cite as most important. It weights each element according to the average importance given to it by students surveyed over the past five years. The criteria used to measure each of these four factors are detailed in Table

26 Full-time rankings Other rankings It is essential to look at several rankings when choosing a school and to understand the methodologies behind them. There are countless rankings on the market, often concentrating on a specific country or region. However, alongside the Economist Intelligence Unit s, there are three other major global rankings. Business Week. This is probably the most influential ranking, especially in North America. It surveys MBA graduates and MBA recruiters on a wide range of issues. Perhaps mindful of the Financial Times (see below), it has introduced a measure of intellectual capital, which it describes as a school s influence on the realm of ideas. This makes up 10% of the ranking; the remaining 90% is split between students and recruiters. Top ranked schools (US): 1. Chicago; 2. Pennsylvania (Wharton); 3. Northwestern (Kellogg); 4. Harvard; 5. Michigan (Ross). Top ranked schools (non-us): 1. Queen s; 2. Western Ontario (Ivey); 3. Toronto (Rotman); 4. IMD; 5. London Financial Times. This ranking is based on three main criteria: the career progression obtained from the MBA (particularly its purchasing power in the marketplace); diversity of experience; and the school s research qualities. Top ranked schools: 1. Pennsylvania (Wharton); 2. Columbia; 3= Harvard; 3= Stanford; 5. London Wall Street Journal. This ranking is based on a survey of recruiters on their perceptions of the attributes of schools and students. Top ranked schools: 1. Dartmouth (Tuck); 2. Michigan (Ross); 3. Carnegie Mellon (Tepper); 4. Northwestern (Kellogg); 5. Pennsylvania (Wharton) All MBA programme rankings depend on surveys of interested parties: the business schools; the students or graduates; and recruiters. The Economist Intelligence Unit ranking follows this pattern but differs from the rest in several important areas. More student-centric (continuing Which MBA? s tradition of appealing to a student audience). It measures the way schools meet the demands students have of an MBA programme. All-embracing. It is based on detailed questionnaires completed by business schools and around 20,000 current MBA students and graduates around the world. Key numerical data (such as average GMAT scores) are combined with subjective views from students and graduates (such as their assessment of a business school s faculty). Global. It allows direct comparison of MBA programmes around the world. Regional. It compares MBA programmes in three regions: North America; Europe; and Asia and Australasia. Flexible. Programmes may be ranked in many ways, producing, for example, tables of the top ten US or Asian and Australasian schools by GMAT score or the top ten US and European schools by percentage of foreign students. Transparent. All the data used to rank schools are published as part of the school s profile in the directory section of this book. Other rankings have some, but not all, of the above features. 26

27 Full-time rankings How did we choose which schools to rank? The Economist Intelligence Unit ranking of full-time MBA programmes was based on an initial selection of 133 leading business schools around the world. All 133 schools were invited to take part in our two-stage survey, which requires input from schools and the students/alumni of each school. Of these, we were unable to rank 18 schools (see Table 8.1). The global top 100 schools were gleaned from the remaining 115. Schools outside the top 100 were given a regional ranking only. Table 8.1 Why schools could not be ranked Failed to respond/unwilling to take part Australian Graduate School of Management Babson College Franklin W Olin Graduate School of Business University of Calgary Haskayne School of Business Concordia University John Molson School of Business EDHEC Business School ENPC School of International Management Helsinki School of Economics Heriot-Watt University Edinburgh Business School Institut d Etudes Politiques de Paris MBA Sciences Po Queen s School of Business Queen s University University of Toronto Joseph L Rotman School of Management University of Western Ontario Richard Ivey School of Business College of William & Mary Mason School of Business Insufficient data EGADE Tec de Monterrey Georgetown University McDonough School of Business Royal Holloway School of Management University of London University of Southampton School of Management No full-time programme Open University Business School Given that 400 schools in the US have AACSB International accreditation and there are many more that are not accredited, it could be argued that, with 59 North American schools, the Economist Intelligence Unit ranking under-represents this important MBA market. However, one of the main objectives of the survey is to provide global comparisons and it was limited to leading schools throughout the world (so even schools at the bottom of our rankings are among the world s best). In common with all other rankings, there was an element of selectivity before the ranking process began. 27