Rising prospects amongst MBAs

Reputable business schools offering accredited MBA programmes rightly point out that there have been significant changes in the design and delivery of the MBA over recent years. The qualification has retained its relevance, value and continuing appeal precisely because it has adapted and responded to changing business needs and practices.  

However, there are some who argue that, in the current climate, a more fundamental review of the MBA is called for if it is to deliver business leaders with the skills, knowledge and capabilities required for the future. Ten years ago the MBA might have been described as a qualification primarily for young high-flying executives working in finance or consulting. Originating in the US, MBA full-time programmes were typically delivered over two years and teaching methods relied heavily on ‘chalk and talk’ and the case study approach. The focus was on the core functions of business such as finance, economics, accounting, strategy, marketing, operations and quantitative analysis. But this scenario has changed.  

Through its research, the Association of MBAs, which accredits 167 leading business schools around the world to offer MBA programmes, has demonstrated the changing nature of the MBA and the increasing diversity of students enrolling for the qualification. The average age of an MBA student is now 33 and these students come to business school with a significant amount of work experience and practical skills. Roughly 70 percent of MBA students are enrolled on part time courses or other ‘flexible learning’ options. Part-time and distance learning courses attract a higher number of women students – a group which business schools have historically found it hard to attract to the MBA. And typically these days the full-time MBA is delivered in one year rather than two.

The curriculum has also changed, with most of today’s courses including topics such as change management, business ethics, sustainability and leadership skills. Learning tends to be in groups with students working on real business projects and, at the same time, discovering the challenges of working in multi-cultural teams. And today’s MBA students are far more diverse, coming from a range of employment sectors and with wider career horizons. Now over 70 percent of MBA graduates are working outside the traditional fields of finance and consulting, and a significant proportion are choosing to work in small businesses.   

When we ask students and graduates about their motivation for doing an MBA and what they got out of their investment, most talk first about their self development, new learning and the experience of working with other intelligent, experienced professionals. The impact of the MBA on their career and salary is still a key benefit, but this is no longer the sole motivation or the most valued outcome.

So what next for the MBA? In 2009 the Association of MBAs conducted a global survey of MBA alumni, employers and accredited business schools in a major project to assess the impact of the economic downturn on the MBA. We wanted to identify the skills, competences and knowledge that MBAs need in the context of world economic events in order to be successful future business leaders. The report’s findings confirmed that the MBA already delivers more than just career advancement.

Alumni particularly value the ability they have acquired, through their learning, to understand the complexity of business, to apply strategic thinking and to manage change in organisations. Not surprisingly, given recent events, there was a view amongst those surveyed that the MBA needs to place more emphasis on areas such as sustainability, ethics and risk management. In fact the dominant view expressed by respondents was that the MBA should focus more on stakeholder rather than shareholder value and that the course content should be much broader. There should be more coverage of areas such as entrepreneurship, creativity and innovation as well as the CSR-related subjects.