Future of Business Schools
An Analysis and Critique
Future Demand for Education
Demand for education will continue to grow
Demand driven by economic growth and globalization Mature economies
Business schools become more specialized, focusing on local needs
Developing economies Strong growth in business professionals
Globalization Businesses are more international
Increased global competition More complex Need professionals trained in international
business
Internationalization of business schools Import model Export model Network model
Import Model Bring faculty, staff, and students from
places around the world to the school campus
Instruction is in English Successful – start a new international
university Not so successful – transfer an existing
school into an international business school National roots in country
Export Model
Faculty and students attend a foreign country University rents out facilities Campus remains in original country Expose faculty and students to different
country and culture Common method
Exchange programs with foreign universities
Network Model
Create multi-site campuses around the world Each campus is a full fledge campus Ideally a campus should be located in all
continents
Network Model
Weakness Keep campuses connected together
Not separate and distinct campuses Knowledge and learning are spread among
all campuses Campus replicates itself in other
countries The same campus
Cultural does not change it
Faculty Shortage
Recruiting top faculty a challenge for business schools Demand for business education is
increasing Flat growth in new PhDs
Number of PhDs may be falling
Why PhD Shortage
Good students are lured by MBA programs (Master of Business Administration) Salaries are higher
40% of PhDs work for industry Higher salaries Quicker promotions
Ways Around PhD Shortage
Business schools can hire PhDs from other disciplines and train them in business Social science
Business schools can hire more masters level instructors Business school may have trouble
managing PhDs and non-PhDs together i.e. salaries
Business School Programs
Programs Undergraduate degrees Graduate degrees Executive training programs – executives
at nearby corporations can attend night courses to complete a business master’s degree Big money maker for business schools
Business School Programs Business programs include large
amounts of quantitative skills Some people want programs to
include softer skills Ability to work with others Leadership abilities Entrepreneurship abilities Ethics (“Societal Values”) Corporate responsibility
Ethics
Could schools teach ethics? Yes, then include some courses in ethics No, then could screen students
Reject students with poor ethics
Technology
Communications and information technology
Traditional classes will remain the same Technology will complement business
schools Technology may allow students in
developing countries to study in developed countries
Technology
Business schools should incorporate Videoconferencing
Students attend class at the same time, but in different locations
An online course Homework via the internet
Business School Funding School funding
Government Tuition Program fees Donations
Author predicts Less government funding Tuition and fees may be lower from competition Less future revenue from executive programs
Business School Funding
Donations In United States
Private universities have large donations Graduates of Harvard, Princeton, etc. have
large salaries Large corporate donations
Public universities varies, but usually 5% of students donate Some may have a large corporate donation
Business School Funding Donations
Outside the United States Very few people donate money to business
schools Author suggests
A country changes a law allowing donations to be tax free
International campuses will develop skills and methods to encourage students and corporations to donate
Expend management and faculty time to encourage relationships Relationships foster donations
Business School Governance
Business Schools will have to change governance Donators should have say or feedback
how school is operated Large corporate donations Alumni donations
Business education is more complex Need experienced professionals to manage
and administer programs
Brand Building
Should school be Research versus academics National versus regional school
School has strong brand name Distinguishes itself from competing
schools Attracts better corporate sponsors,
faculty, staff, and students
Brand Name
Want graduates to say “I went to…” instead of “I have a MBA.”
The Future Traditional – business school is a factory The future
School is a knowledge and learning network School is connected with campuses around the
world Retain alumni in the network after
graduation Turn education into a life prolong process
The Future
Faculty are transformed into quasi-autonomous knowledge professionals
Faculty require flexibility to live and work away from their primary school campus
Not likely
References
1. Hawawini, Gabriel. 2005. “The Future of Business Schools.” Journal of Management Development 24(9): 770-82