The State of the MBA

Specialized degrees and a shorter time to graduation.

That’s the direction that today’s MBA is going.

Daphne Zhang, of The Inquirer, recently discussed how b-schools are evolving the traditional business degree to attract more applicants.

MBA DECLINE

In recent years, applications to MBA programs have dropped drastically.

According to a survey by the Graduate Management Admission Council, 70% percent of two-year full-time MBA programs in the US experienced a decrease in applications in 2018.

Many experts attribute the decline in applications to the political climate in the U.S.

“There’s no doubt that immigration policy is having a negative impact on U.S. business schools,” William Boulding, dean of Duke University’s Fuqua School of Business, tells P&Q. “You’ve seen growth in business schools outside the U.S., but the U.S. is losing the pipeline of talent. If we are going to maintain our reputation for having the best business schools in the world, we have to be able to attract the best and brightest in the world.”

TAILORING THE MBA

To attract a wider range of applicants, many b-schools are experimenting with more custom-built MBA degree programs.

“For schools that are more regional, they are searching for new and differentiated props, advantages of geographical location, or special ties to some industries,” Eliot Ingram, CEO of Clear Admit, tells The Inquirer. “Each tries to find a niche.”

At Drexel University’s LeBow College of Business, specialized programs are growing.

“The only way we are going to succeed is to build stronger ties with the industry,” Vibhas Madan, senior associate dean of academic programs, who teaches the school’s Vanguard program, tells The Inquirer.

Drexel’s Vanguard MBA is a specialized program with 70% of the content being built by Drexel and 30% by Vanguard. The program takes into consideration what the company thinks its employees should be learning.

“This program has been a lever in both their performance and potential in the long term,” Kathy Himsworth, head of talent development at Vanguard, tells The Inquirer.

SHORTER DURATION

A number of b-schools are also experimenting with fast-tracked, specialized degrees and certificates.

Applicants today have access to one-year Master’s degrees in areas such as finance, digital marketing, and business analytics.

“We are seeing more people saying, ‘Instead of doing a two-year general degree, why don’t I do a one-year specialized business degree?’” Michael Waldhier, Penn State’s director of MBA admissions, tells The Inquirer.

Online MBAs are also growing in popularity.

According to GMAC, applications to online MBAs increased to 57% in 2016, compared to 50% in 2015.

For b-schools, it’s all about adapting to the times and the current needs of today and tomorrow.

“The world changed. People want to learn at their timetable, at their pace,” Judy Frels, assistant dean of online programs at Maryland’s business school, tells The Inquirer. “They want stackable credits and smaller chunks of education. They want to learn what they can apply tomorrow.”

Sources: The Inquirer, GMAC, Poets & Quants, GMAC