A worthy investment

Statistics from recent research studies confirm those results. Maury Kalnitz, managing director of the Executive MBA Council, explains why executive education is so important.

The Executive MBA Council, an association of more than 200 member colleges and universities worldwide that offer more than 300 programs in 25 countries, sponsors research that tracks student satisfaction and industry trends. According to 2006 council studies:

• The percentage of students who were enrolled in Executive MBA Council member programs and received promotions increased from 34 percent to 43 percent in the last two years.
• The salary mean for students who entered the program was $108,392, but the salary mean for students when they left the program was $129,740, a 20 percent salary increase.
• The overwhelming majority – 99 percent – of Executive MBA participants would recommend the program to others.

Many Impacts

The gain for business leaders comes in many forms: the ability to analyze complex situations and make tough decisions; deepened understanding of all business functions; increased confidence to lead a team and to tackle additional responsibilities; access to the latest in innovation, ideas, and approaches; global vision; and expanded professional networks.

The gain for companies is equally as powerful. Executive MBA Programs are assets to organizations because they offer the knowledge and tools that participants need to become complete business leaders.

Because those leaders attend Executive MBA classes while working, they often apply what they learn in classes immediately on the job. The Executive MBA allows them to bring best practices and new ideas to the organization and consider the impact of decisions on the organization as a whole. Many students can tie revenue-generating initiatives to their Executive MBA education.

In fact, it takes on average 17 months for companies that sponsor Executive MBA students to gain their return on investment, according to corporate sponsors of students that responded to a study by the Graduate Management Admission Council (GMAC), an international association of graduate business schools.

As a result and as the statistics show, it does not take long for business leaders and their organizations to benefit from participation in Executive MBA Programs.

Targeted Focus

Designed for executives and business leaders, the Executive MBA offers the same foundation and rigor as any MBA degree and the added benefits of a convenient format and a built-in network of experienced business leaders.

Executive MBA Programs share some common characteristics:

• They are designed to meet the educational needs of business leaders from all types of industries.
• Their format makes it possible for such leaders to earn their MBA in two years or less while continuing to work full time, and program services allow students to concentrate on their studies.
• Business leaders enter the program, complete classes, and graduate with the same group of students, giving participants the unique opportunity to meet and learn from each other.
• They receive an MBA degree after completing their course work, which mirrors the rigorous content of Full-Time MBA Programs
• Many business leaders receive some form of tuition reimbursement to attend the Executive MBA Program.
• Taught by senior faculty members, the curriculum covers and integrates all functional areas.
• No matter where they are, business leaders can find Executive MBA Programs.

More than one-quarter of Executive MBA Programs are located outside of North America, with 67 percent in the United States, 16 percent in Europe, seven percent in Asia, five percent in Canada, four percent in Latin American, and one percent in South America.

Growth in international programs remains high. More than 80 percent of programs that are located outside of North America began operating within the last 14 years. And one-third of all programs that are located outside of North America are offered jointly with other schools.

Adaptations

Executive MBA Programs have developed many creative models to both expand internationally and to offer students unique international business perspectives and experiences.

For example, the OneMBA allows executives to accelerate their careers in a global setting. Five business schools collaborate on the OneMBA Program:

• Chinese University of Hong Kong Faculty of Business Administration
• Fundacao Getulio Vargas, Escola de Administracao de Empresas de Sao Paula in Brazil
• Technologico de Monterrery’s Graduate School of Business Administration and Leadership in Mexico
• RSM Erasmus University in the Netherlands
• University of North Carolina at Chapel Hill Kenan-Flager Business School in the United States

Students take core courses at their home business schools and work in virtual global teams on assignments. They come together for four, one-week sessions in Asia, Europe, and North and South America as part of the 21-month program.

Another alliance, the TRIUM Executive MBA Program involves four schools: The New York University Stern School of Business, the London School of Economics and Political Science, and HEC School of Management in Paris.

International collaborations often involve two partners, such as the Olin School of Business at Washington University and Fudan University, which launched a joint program in Shanghai, China, in 2001.

Students who do not participate in these new models of international Executive MBA Programs need not worry about missing international business lessons. Most Executive MBA Programs include an international trip as part of their curriculum and cover international business issues in classes.

Frequency and Flexibility

Executive MBA Programs also are changing in other ways to meet the needs of students and organizations.

In the past several years, Executive MBA Programs have been making adjustments to formats and schedules, as well as incorporating elements of distance learning.

Because Executive MBA Programs serve experienced business leaders who are pursuing their degree while continuing to work full time, the formats of such programs seek to minimize the amount of time away from the job. Students typically attend classes in more convenient blocks of time, such as all-day sessions.

More than 90 percent of students complete their program in less than two years, but studies show that programs are offering shorter schedules.

In 2000, more than 50 percent of programs finished in 21-22 months, according to results of the Executive MBA Program Survey, which offers the most comprehensive data about Executive MBA Programs worldwide. In 2006, that number dropped to 29 percent, and the average program length was 20.4 months. The majority of programs – some 75 percent – offer programs that range between 17 and 24 months to complete.

In addition, more programs are incorporating some element of distance learning; in 2004, 17 percent of all programs used distance learning tools, but in 2005 that number increased to 36 percent and increased again to 43 percent in 2006, according to council research. Those tools are helping programs increase the access to students who may not work near Executive MBA Programs, as well as helping students expand their base of colleagues.

The Complete Leader

To bolster leadership abilities, many Executive MBA Programs are increasing their focus on strategy and leadership and on higher management functions. In addition, they are integrating the curriculum to ensure that students not only understand functional areas, such as finance and marketing, but the ways in which functional areas combine to strengthen an organization’s competitive position.

Many programs also are emphasizing skill development in key leadership areas, such as communication and negotiation. The changing focus of programs will remain consistent in one goal: to offer the knowledge and tools that participants need to become complete business leaders.