Appendix F Executive Education Providers

Transcription

1 Appendix F Executive Education Providers kpmg 1

2 Operating Tuition Tuition Graduate Undergrad Educational Institution Revenues Revenues fee Students Students Total 1. Harvard $1,518,711,000 $501,174,630 33% $19,472 3,428 15,221 18, University of Michigan $357,659,765 $72,581,421 20% 5,915 20,217 26, Northwestern (Kellogg) 4. Pennsylvania (Wharton) $671,019,000 $383,523,000 57% $21, Stanford $1,582,964,000 $258,806,000 16% $19,695 7,261 6,550 13, West Virginia University $416,350,392 $82,411,967 20% 5,536 15,042 20, Columbia University $1,102,865,000 $278,383,000 25% $20,114 11,848 5,594 17, Insead (France) 9. Duke University 6,572 6,538 13, MIT (Sloan) $1,359,800,000 $214,200,000 16% $22,000 5,518 4,429 9, University of Chicago 12. IMD (Switzerland) 13. University of North 5,338 18,965 24,303 Carolina 14. Dartmouth $354,000,000 $20,805 1,254 3,926 5, Indiana 16. London Business School 17. Babson University 1,644 1,692 3, Southern California 19. Penn State $17,974 10,758 65,839 76, Cornell $1,291,059,000 $322,764,750 25% $20,000 5,970 13,510 19,480 Average $961,603,129 $234,871,641 27% $20,149 5,920 14,794 20,714 kpmg 1

3 Educational Institution Exec Ed revs as 5 year No. Customized Overseas Executive Education Revenues % of Tuition growth programs programs Execs Revs 1. Harvard $49,000, % 65.0% 56 15% 47% 2. University of Michigan $26,400, % 40.4% 62 15% 26% 3. Northwestern (Kellogg) $33,000, % 60 41% 17% 4. Pennsylvania (Wharton) $29,000, % 141.7% % 23% 5. Stanford $8,300, % 88.0% 15 3% 44% 6. West Virginia University $14,500, % 81.3% 59 47% 10% 7. Columbia University $12,700, % 61.8% 41 48% 45% 8. Insead (France) $40,000, % % 89% 9. Duke University $10,400, % 25 70% 7% 10. MIT (Sloan) $11,800, % 31.1% 57 21% 45% 11. University of Chicago $1,300,000 n/a 10 37% 6% 12. IMD (Switzerland) $23,400, % 67 44% 84% 13. University of North Carolina $5,800, % 47 65% 6% 14. Dartmouth $3,700, % 12 25% 30% 15. Indiana $4,200, % 46 70% 12% 16. London Business School $9,400, % 50 50% 57% 17. Babson University $6,400, % 29 85% 53% 18. Southern California $5,400, % 39 52% 11% 19. Penn State $4,500, % 72 45% 44% 20. Cornell $2,200, % 126.8% 13 48% 17% total* $301,400,000 Average $15,070, % 87.21% 50 43% 34% kpmg 1

4 Educational Institution Audience Average course $/course Ave No Executive Education length per day execs/yr Comments 1. Harvard Upper/Sr mgmt 2.5 days to 5 wks $1, Focus on helping equity owners / entrepreneurs become CEOs 2. University of Michigan Middle/Sr exec 2 days - 4 wks $ General management courses 3. Northwestern (Kellogg) Various mgmt 2 days-several wks $ Delivering excellent customer service 4. Pennsylvania (Wharton) Mid/upper mgmt 1.5 days - 5 wks $1, Healthcare mgmt 5. Stanford Mid/upper mgmt 1-6 days $ Programs delivered by faculty, industry, and consultants 6. West Virginia University mid/sr executives 3 days to 6 wks $ New 5 bldg complex opened in Jan 96 for exec ed 7. Columbia University Mid/Upper mgmt 3 days - 4 wks $ All programs use "action learning" 8. Insead (France) 9. Duke University 10. MIT (Sloan) Sr executives one week $ Rich variety of short courses. Focus on distance delivery 11. University of Chicago 12. IMD (Switzerland) 13. University of North Carolina All mgmt levels 1-10 days $ New $20M exec ed centre in Dartmouth Mid/Upper mgmt 3 days - 4 wks $1, Courses in competitive strategies 15. Indiana Various mgmt 1 day - 4 wks $ Brings together orgs facing similar strategic issues 16. London Business School 17. Babson University Mid/Upper mgmt 5-15 days $ Est Recognized for entrepreneurial focus 18. Southern California Mid/Sr mgmt 2.5 days to 3 mos $540 HR Leadership program. Leading changing organizations 19. Penn State mid/sr executives 1 to 4 weeks $ Programs for strategic leadership/hr mgmt offered via EXEN 20. Cornell Mid/Sr mgmt/exec 2 days to 4 wks $ Manufacturing focus. total 10 $821 1,711 Average kpmg 1

5 UA extrapolation UA as successful as top 20 UA tuition revenues $74,784,000 Exec ed revs as % of tuition revs 11% UA potential exec ed revs $7,970,625 Percent customized 43% $3,411,427 Percent standardized 57% $4,559,197 Percent local 66% $5,290,901 Percent out of province 34% $2,679,724 Average cost/day $821 Average days/exec or manager 10 Average execs or mgrs per year 940 UA extrapolation UA half as successful as top 20 UA tuition revenues $74,784,000 Exec ed revs as % of tuition revs 5% UA potential exec ed revs $3,985,312 Percent customized 43% $1,705,714 Percent standardized 57% $2,279,599 Percent local 66% $2,645,450 Percent out of province 34% $1,339,862 Average cost/day $821 Average days/exec or manager 10 Average execs or mgrs per year 470 UA extrapolation UA 3/4 as successful as top 20 UA tuition revenues $74,784,000 Exec ed revs as % of tuition revs 8% UA potential exec ed revs $5,977,968 Percent customized 43% $2,558,571 Percent standardized 57% $3,419,398 Percent local 66% $3,968,175 Percent out of province 34% $2,009,793 Average cost/day $821 Average days/exec or manager 10 Average execs or mgrs per year 705 kpmg 1

6 School: Thunderbird (The American Graduate School of International Management). Business Week ranking: Top school in the nation for international business undisputed. Annual revenues: $6 million. Five-year growth: 900% now seeing foreign companies customizing programs for cross cultural training. Programs offered: 28 international focus but general in nature. Profit per program: $214,285 Customized programs: 55% jointly taught by both executives and professors. The two specialized program areas are oil & gas and telcoms. They also offer intensive language training for people before going abroad. Their other programs are all globally focused, eliminating the need for redevelopment. They focus on common issues experienced among a wide variety of managers. International draw: Approximately 50% of attendees. Area of expertise: Custom international business. Their success rests on their ability to persuade multinationals to use Thunderbird as their intensive training headquarters. The majority of attendees are sponsored from large multinational companies who use Thunderbird for training ex-pats before they move overseas. Big city draw: Phoenix, Arizona but less than 5% of attendees are local. Facilities: Campus location with dedicated hotel for accommodations. Classroom/lecture style with numerous breakout rooms. Alumni strength: Only 50 years old and has gained international recognition only within the last 10 years. However, the graduates are among the decision-makers for the multinationals today. They have affiliate campuses across the world and utilize their sponsoring companies as a curriculum advisory board. Approximate cost: $1,000/day. Key success factors: Thunderbird has developed its executive education program to build upon the existing strengths and reputation of the school. They have focused on international executives, without becoming too niche-oriented (i.e., marketing management in China). They have built lasting relationships with sponsoring companies to keep curriculum up to date and to build barriers to exit. They have combined intensive training in language and business to become the most profitable university per program. kpmg 1

7 School: Duke (Fuqua School of Business). Business Week Ranking: Twelfth. Annual revenues: $9.1 million. Five-year growth: 44% Programs offered: 76 Profit per program: $119,736 Customized programs: 60% primarily taking existing course material and customizing it to the needs of individual companies. The courses are taught by university resources and foster strong relationships with companies for repeat business. The courses are viewed as a method of developing executives or as an agent for organizational changes. International draw: Very little. Area of expertise: Taking general business practices and applying them to a specific issue or case for the attending organization. They have a strong focus on soft skills, something for which the Duke MBA is well known. Big city draw: Raleigh/Durham and the high-tech triangle. Facilities: Campus location with a dedicated building and accommodation for executive development. Alumni strength: The success of Duke s executive programs rely heavily on their alumni base and the companies with which they are associated. As opposed to their MBA graduates driving the attendance, graduates from other programs (medicine and engineering) tend to be the strongest alliance. Approximate cost: $500/day. Key success factors: Duke has fostered a strong association with their alumni base to continually return to the school. This has spilled over into their executive development programs with alumni corporations. The school s reputation drives the desire to attend, although the actual course material is traditional in nature. They have successfully built strengths in the soft skills of business reaching those coming from an engineering, medical or high technology background, making Duke s executive program indicative of its surrounding environment. kpmg 2

8 School: Kellogg (Northwestern University). Business Week Ranking: First. Annual revenues: $14 million. Five-year growth: 75% now being driven by Chicago-based companies. Programs offered: 42 Profit per program: $333,333 Customized programs: 35% taught primarily by professors. Most companies take advantage of Kellogg s teaching staff and their abilities to integrate traditional curriculum into a niche strategy. This results in a wide variety of highly focused courses. However quality varies greatly, as new courses are continually developed and not tested. International draw: Approximately 25% for non-customized programs. Area of expertise: Leading edge strategies Kellogg prides itself on being at the forefront of management techniques and business philosophies. Accordingly, much of their five-year growth has come from consulting firms headquartered in Chicago. Kellog has recently focused its efforts on bringing outside panelists to add to the classroom something which improves the program and builds additional relationships with the local business community. Big city draw: Chicago. Facilities: Campus location with dedicated building for accommodation, catering and training. Numerous breakout rooms and networked infrastructure. Alumni strength: Strong alumni body. However very few return for continuous learning. Approximate cost: $1,000/day. Key success factors: Kellogg has built an international reputation for excellence and therefore draws people and companies to the campus from all corners of the world especially South America and the Pacific Rim. Situated in a financial centre, Kellogg has also been able to tap the resources locally to build highly profitable two-day programs that are extremely specific. Most importantly however, it has some sort of compensation program which encourages professors to build and maintain the relationships with the sponsoring organizations. kpmg 3

9 School: Darden ( University of Virginia). Business Week Ranking: Tenth. Annual revenues: $10.5 million. Five-year growth: 40% Programs offered: 45 Profit per program: $233,333 Customized programs: 29% Darden is a destination for many sales organizations that wish to bring their regional people together for both training and a retreat. The customized programs tend not to deviate a great deal from the open-admissions curriculum, however the professors are highly respected for team building within a classroom. This mimics Darden s MBA reputation for excellence in teaching soft skills within traditional topics. International draw: Approximately 10% are ex-pats who come for training from abroad. Areas of expertise: Outstanding multi-discipline programs Darden has built their program selection to meet the needs of a variety of disciplines. This also populates the classroom with a wide variety of disciplines. Darden also places a strong emphasis on interaction and team-building amongst participants. Big city draw: Miami and Atlanta. Facilities: Dedicated facility designed to promote small team environments commensurate with their teaching objectives. Accommodation, catering, workout facilities, and outdoor activities are available. Alumni strength: Building each year, similar to Darden s reputation. Students have continually selected Darden as the nation s top school for teaching and look forward to the same in the executive programs. Approximate cost: $750/day. Key success factors: Similar to the Darden MBA, the executive programs combine great topic selection, outstanding teaching and teambuilding into a successful program. Participants leave as networked friends, providing them with a continual benefit of the program. Darden has also developed a strong consortium program that utilizes the participating organizations for continual curriculum improvement. This philosophically ties the organizations to the school in the form of an interactive relationship. kpmg 4

10 School: Center for Creative Leadership. Business Week Ranking: N/A Annual revenues: $23.7 million. Five-year growth: 57% Programs offered: 28 Customized programs: 34% Focus: The Center for Creative Learning focuses heavily on non-business courses are designed to promote creative thinking among business employees. This is the only program on the Business Week Top 20 list not affiliated with a major university. However, the Center undertakes research initiatives with commercialization as the primary goal. This creates a resale market for business tools to the broader business marketplace. The Center is a non-profit organization. Facility: Campus-like retreat setting where participants are lodged throughout the duration of the program. The facility is currently being expanded to incorporate technology-based learning. All meeting rooms, labs and lecture rooms are wired to disseminate technology-driven programs to various sized work groups. The facility is not rented as a retreat location without utilization of instructional staff. Programs: The Center offers open admission courses, menu-based programs and total customization programs to sponsoring companies. The staff plays an important role in any custom program offering. They work very closely with organizations to understand their people, culture and business needs. Only then do they attempt to design a custom program for them. They do not simply repackage existing content, and therefore they charge a significantly higher price per participant. Success factors: A retreat-style facility allows for out-of-the-box thinking and teambuilding. The Center focuses heavily on encouraging employees to work together in new ways. Their programs are very target-specific around creativity. They create postlearning forums for intranet-enabled discussions to continue the learning into the future. They do an exceptional job of following up with both individuals and companies to determine if goals have been obtained. Flexibility: The CCL has its own staff, but also is ambitious to use instructional staff from highly reputable universities throughout the USA. kpmg 5

11 School: Columbia University. Business Week Ranking: Seventh. Annual revenues: $7 million. Five-year growth: 0% Programs offered: 39 Customized programs: 25% and maybe decreasing. Given the proximity to the New York marketplace, Columbia realizes that an enormous need exists to provide standard functional programs to the mass market of business executives and those desiring to become executives. International draw: Approximately 20%. Area of expertise: Columbia s expertise is in delivering high quality programs in an extremely efficient manner. The programs tend to be shorter, but more intense something for which other schools have been criticized in the past. Executives do not want retreats, but programs delivered with the same intensity as a CEO s busiest work day. Columbia also successfully bridges the gap between the political and legal professions with the business world. Many participants come from government (Washington) or the legal community in NYC. Big city draw: New York, Boston, Washington. Facilities: Columbia utilizes an existing building that has been renovated to meet the needs of the participants. Given the high level of local participation, dayrooms, or cubicles, are provided for attendees. The facility offers basic, not luxurious, accommodation, but is extremely versatile and efficient. They are in the business of moving bodies in and out. Alumni strength: Enormous alumni participation because of their location. Approximate cost: Between $700 and $1,250 per day based on the length of program. Key success factor: They run the program like a business keep the people coming in the door, deliver the goods, and move them out. Their programs have the highest repeat client rate of any university due to the ease of access and efficiency of the dollars spent. kpmg 6

12 School: Michigan Business Week Ranking: Second. Annual revenues: $21.5 million. Five-year growth: 53% Programs offered: 63 Customized programs: 10% seems extremely low considering the supporting companies listed on their promotional materials. However, they build upon the strength of their MBA program and deliver traditional functional course material to executives lacking skills in a particular area. International draw: Approximately 20% many of those from Canada. Area of expertise: Attracting the people that need critical skills in an area of deficiency. This enables Michigan to deliver introductory MBA material to participants. These courses contain a high academic component, in addition to their networking benefit. People attend to learn skills, and not to learn new ways of thinking. As a result, Michigan is considered a blue collar program, which is changing as its reputation for delivering quality programs continues to soar. Big city draw: Cleveland, Chicago, Columbus, Toronto Facilities: Large facility housing boarders and day students. Not much information could be obtained about the facility except that it is shared with the Executive MBA participants. Alumni strength: Strong, but not a critical success factor. Approximate cost: $750/day very practical, attracting people unwilling to wanting to spend large amounts. Key success factors: They have not gone after the high-end executive education market rather the middle management market looking to build skills to support them in their existing roles. Programs are very practical with real-world appeal versus high academic theory, appealing to those wanting immediate results. Their revenue figures indicate that something can be said for this! kpmg 7

13 School: Massachusetts Institute of Technology (MIT). Business Week Ranking: Twelfth. Annual revenues: $8.3 million. Five-year growth: 7% Programs offered: 42 Customized programs: 20% mostly around the area of innovation and product development. MIT is undergoing a radical review of its programs after receiving a tremendous amount of negative news in the public marketplace. Its executive programs were not customer-focused and were penalized after receiving negative reviews about the practicality of the materials they were teaching. International draw: Approximately 40% mostly from Europe. Areas of expertise: Innovation and creative leadership. MIT delivers a highly academic program offering, concentrating on theory versus application. This is the source of its problem of declining revenues and attendance. Programs are long and not very interactive. Programs are excellent for video production, but do not meet the needs of teambuilding, networking, or free thinking. One area of expertise is a short course in real estate methodology (unique in the marketplace) Big city draw: Boston, New York, Los Angeles (high-tech leadership). Facilities: MIT piggybacks on the existing Sloan Graduate School of Management for classrooms and breakout facilities. Participants mingle with MBA students throughout the programs. Alumni strength: Not substantial. Approximate cost: $1500/day highest among universities Key success factors: MIT built upon its international reputation for academics and technical brilliance. Participants are looking for a higher level of learning, but walk away unsatisfied. More research should be completed on why it failed, and what is turning it around. kpmg 8

14 School: Wharton Business Week Ranking: Third. Annual revenues: $25 million. Five-year growth: 141% Programs offered: 110 Customized programs: 55% Wharton has one of the most sought-after executive education programs for customizing programs specifically to meet an organizational need. Wharton has the largest list of participating organizations of all university executive programs. International draw: 23% from all corners of the world, especially for custom programs. Area of expertise: Wharton will offer any type of program and customize it to the client s needs. It provides extremely good service in the educational tailoring business the business they are in! Warton offers business fundamentals for open-admission programs and tends to deliver more trend-oriented programs for custom needs. Big city draw: Boston, NY, Washington, Philadelphia. Facilities: All marketing and information materials herald the Steinberg Conference Center as the leading executive education facility in the world, but no specific information about it is available, apart from the following facts: it is dedicated to the executive programs, contains accommodation, classrooms, breakout rooms, study areas, computer rooms and catering facilities. Alumni strength: Strong alumni support. Approximate Cost: $1,000/day. Key success factors: Wharton has one of the most respected reputations internationally and as a result, has the ability to attract leading organizations experiencing a variety of challenges. Wharton has a full menu of courses available (110) to meet almost all requirements. As a result, organizations consider Wharton a one-stop shopping experience because they know they can deliver what is required. Wharton also has the largest repeat customer business, signifying satisfaction and value. Classes are relatively small (20-30) people, but courses are offered several times a year, creating the volume needed for profitability. Wharton is also recognized by its peers as delivering exceptional teaching. kpmg 9

15 School: Harvard Business School. Business Week Ranking: Seventh. Annual revenues: $30.1 million. Five-year growth: 20% Programs offered: 28 Customized programs: 5% Harvard focuses very much on the diverse classroom. Diverse interaction is key to the case study environment they offer. As a result, very few programs are custom-developed for particular organizations. Also, the higher costs of Harvard professors tend to make custom programs impractical for most education and training budgets. International draw: 30-60%. Area of expertise: Harvard uses a case study approach that is unique for executive education programs, but consistent with the method of delivery found in their MBA program. Harvard also focuses on teaching and classroom dynamics. Peer interaction is where the real learning takes place. In fact, Harvard pre-qualifies the participants in an application process (unique among schools studied) to ensure the highest quality of participants are in the classroom. Big city draw: New York, Boston, Washington but varied across North America. Facilities: The executive education programs use the Harvard Business School facilities, dining hall, libraries and exercise facilities. The executive education program has a separate residence that is commune-oriented, based on the program attended. Alumni strength: Harvard experiences enormous alumni support within their executive education programs. Beside MBA graduates, participants are often alumni from the Medical School, Law School or School of Government. Approximate cost: $1,500 - $2,000 per day. Key success factors: Harvard s entry requirements are extremely stringent almost intimidating! They pre-select the highest calibre candidates for each program to ensure that each participants meets their quality standards. Harvard uses the case study method transferring the learning process from the professor to the participants. They charge significantly more for the high quality value of their program, as opposed to the amenities, of which they have few. They deliver both cutting-edge ideas and the fundamentals as content, but always applied to a real situation. kpmg 10

16 School: West Virginia University. Business Week Ranking: N/A. Annual revenues: $14.5 million. Five-year growth: 81% Programs offered: 59 Customized programs: 47% but they represent 100% of their marketing efforts. They market their services to either develop a custom program for the organization or choose from a previously developed course delivered to another firm. International draw: 10% (or probably less). Area of expertise: Delivering basic business fundamentals in a customized approach to local organizations traditionally not populated by MBAs. Their customers are smaller organizations, non-profit groups and the occasional recognized company. They do not try to compete with the big name universities. Big city draw: Raleigh/Durham. Facilities: No information available. Alumni strength: West Virginia University has a strong alumni base, but they are not big supporters of the executive education programs. The participants are all new to the university. Approximate cost: No exact figures available, but presumably $500/day per participant. Key success factors: WVU has kept the whole process simple by offering something different. They do not try to deliver glossy high-end executive education programs, but a solid program that for the whole team. The result is shorter courses, delivered to a very focused group, in a retreat-like format. Costs are kept at a level that appeals to a team with smaller budgets, but who see the value in a university-driven program with elements designed specifically for them. kpmg 11

17 School: Stanford. Business Week Ranking: Fourth. Annual revenues: $6.9 million. Five-year growth: 103% Programs offered: 15 Customized programs: 3% Stanford focuses on delivering business fundamentals to non-business oriented people. They do not want to be in the business of developing course topics that will be out of style next year. Rather, they deliver the basics and they deliver them well. International draw: 44% mainly from the Pacific Rim. Area of expertise: Because participants are not business professionals, Stanford highlights the importance of teaching in the delivery of information rich courses. They deliver the same programs 3-4 times per year to engineers or other technically sound people experiencing hyper growth. Big city draw: San Francisco, Hong Kong, Osaka, LA, Dallas/Fort Worth. Facilities: Stanford uses existing facilities dedicated to the MBA program but has a designated accommodation facility for participants. Alumni strength: The alumni play an important role as participants in the executive education program. The alumni themselves are not necessarily the participants, but they are key ambassadors to the school itself within Bay area organizations. Approximate cost: $1,000/day. Key success factors: Stanford s executive education program is consistent with its objective as a university as a whole keep it simple and make sure we are the best at it. They do not offer the posh programs, in terms of user experience, but they deliver value to participants and they fill the classrooms. The average class size is around 65 participants, making for less interaction and more asynchronous learning. kpmg 12

18 School: Penn State Business Week Ranking: Sixteenth. Annual revenues: $4.5 million. Five-year growth: 40% Programs offered: 72 Customized programs: 45% Penn State offers custom programs to some of the biggest international organizations. They do not seem to target US-based organizations, but concentrate on European companies doing business in the US. International draw: 44% Area of expertise: From an academic viewpoint, Penn State does not have a functional area of expertise. Instead, they provide a blue collar executive program. Programs are based on real-world situations, not theory. Penn State bridges the gap between textbooks and case studies as their professors work as outside consultants on a daily basis. Big city draw: Boston, NY, Washington, Jersey, Philadelphia. Facilities: Not much information, but claimed to be very luxurious. Alumni strength: Not a factor in the success of the program. However, Penn State has a high return rate of participants, especially for their custom programs which are the most profitable. Approximate cost: $700/day Key success factors: Penn State has built its success on a highly personalized approach to executive education. They are in the customer service business and are trying to become a destination for executives. From limo pickup at the airport to small intimate classrooms, Penn State focuses on personalized attention. They have also been successful in focusing on repetitive sales from existing customers. They concentrate on winning the support of HR departments and continuing to deliver value to participants. kpmg 13