Real Returns

In conversations with alumni from Executive MBA Programs, it quickly becomes clear how much they value their experience. They point to – often with great passion – the benefits to their organizations, their careers, and their lives.

An Executive MBA Council study also shows a satisfaction indicator among alumni that any business would envy: 99 percent of Executive MBA participants in the study would likely recommend the program to others.

The Executive MBA Council, an association of more than 200 member colleges and universities worldwide offering more than 300 programs in 25 countries, sponsors research that tracks student satisfaction and industry trends. Council studies reveal a consistent pattern of value to students, both in their willingness to recommend the program and in other important measures.

According to 2007 council research, students reported a 21 percent salary increase. Students’ salaries rose from a mean of $107,097 when entering to $130,056 after completing the program. And while only 37 percent of students in the survey expected a promotion, 43 percent of students actually received a promotion while enrolled in the program Nearly three-quarters of students in the survey rated the overall value of their Executive MBA Program as excellent and also said that their value to their organization greatly increased.

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 business leaders attend classes while working, they are often able to apply what they learn 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.

The program attracts a talented and diverse range of business leaders, who enter with about 13 years of work experience and eight years of management experience. The Executive MBA offers the same foundation and rigor as any MBA degree, but includes the added benefits of an attractive format and a built-in network of experienced business leaders. They are designed to meet the educational needs of business leaders from all types of industries. This 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. 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.

About one-third of programs that are members of the Executive MBA Council are located outside of North America. 63 percent are in the United States, 19 percent in Europe, seven percent in Asia, four percent in Canada, six percent in Latin America, and one percent in the Middle East/Africa.

In 2007, Executive MBA Council member programs reported that the average number of applicants per program increased by 25 percent from 2005. Research from the Graduate Management Admission Council (GMAC) also confirms steady growth in applications, with application volume increasing from 27 percent in 2004 to 40 percent in 2007.

The Executive MBA also compares favorably in several key areas to other MBA experiences. For example, according to results from the 2007 GMAC Global MBA Graduate Survey, executive graduates rate the quality of faculty, fellow students, curriculum, admissions, program management, student services, and career services higher than graduates from full-time or part-time MBA programs. They were also more likely than graduates from other programs who received a promotion to report an increase in their budgetary authority.

According to the 2007 GMAC Alumni Perspectives Survey, they reported higher annual salaries and were significantly more satisfied that their education was personally rewarding. They also rated the overall value of their degree higher compared with part-time graduates and were significantly more likely to say yes to the question, “Knowing what you know now, would you still have pursued a graduate business degree?”

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

For example, the OneMBA allows executives to accelerate their careers in a global setting. The Chinese University of Hong Kong Faculty of Business Administration, the Fundacao Getulio Vargas, Escola de Administracao de Empresas de Sao Paula in Brazil, the Technologico de Monterrery’s Graduate School of Business Administration and Leadership in Mexico, RSM Erasmus University in the Netherlands and the University of North Carolina at Chapel Hill Kenan-Flager Business School in the United States collaborate on the OneMBA Program. 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.

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 programs include an international trip as part of their curriculum and cover international business issues in classes.

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 pursuing their degree while continuing to work full time, the formats of such programs seek to minimize 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 research shows 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. 75 percent continue to offer programs that range between 17 and 24 months to complete. In 2007, the average program length was 20.4 months.

In addition, more programs are incorporating some element of distance learning. In 2004, 17 percent of all programs used distance learning tools, but that number increased 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.

To bolster leadership abilities, many programs are increasing their focus on strategy and leadership and on higher management functions, as well as improving communication skills. More Executive MBA Programs are assessing and working to strengthen student leadership skills. According to council research, the number of programs that offer leadership testing doubled from 49 percent in 2006 to 85 percent in 2007.

In addition, programs are integrating the curriculum to ensure students not only understand functional areas, but the ways in which these 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.

About Michael Desiderio

Michael Desiderio joined the Executive MBA Council as executive director in 2007. He oversees council operations and services and council collaborations with related educational associations and organizations throughout the world. He has been in industry in various positions that range from engineering through executive management and most recently served as director of strategic partnerships for the W. P. Carey School of Business at Arizona State University. He also founded Enigma Professional Services, a firm that offers business consulting and speaking services. Desiderio received his undergraduate degree in electrical engineering from Pratt Institute in Brooklyn, New York, and his Executive MBA degree in 2001 from the W. P. Cary School at Arizona State University.