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B-Schools – Ready for a Revolution?

B-Schools – Ready for a Revolution?

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Thanksgiving vacation provided me with some time to catch up on reading. I’ve significantly reduced magazine subscriptions due to their digital availability, but one I continue to receive in print is The Economist. In its November 2, 2019, issue, the magazine wrote about business schools in the U.S. and the market forces forcing them to change. The article begins with a quote from Salesforce CEO Marc Benioff that American management education programs students to favor profit over the public good, which is not in sync with “the new capitalism.” Conversations with the B-School deans from Duke, Harvard, and Stanford indicate an agreement that these conversations are desired by incoming students and that they are appropriate.

B-School enrollments are declining across the U.S., impacting full-time, two-year MBA programs the most with 75% of schools reporting a decline last year. A few reasons cited for this disruption are: the popularity of one-year MBAs in Europe and the fact that they enable faster completion at less cost; soaring tuition in the U.S. where a two-year MBA at an elite school costs approximately $200,000 including the cost of living; and the opportunity cost of leaving a paying job for two years in a tight labor market. If there is a silver lining, it’s that the top traditional employers of graduating MBAs (investment banks and consulting firms) are still hiring graduates.

Nonetheless, most MBA programs are vulnerable to competition, particularly in online education. Boston University’s Questrom School of Business has partnered with EdX to offer a fully-online MBA for $24,000 which is approximately one-third the cost of its full-time, residential program. The Sloan School at MIT, in addition, bundles online “Micro Master’s” courses transferrable into the MBA program if the student is accepted.

According to The Economist, employers are seeking MBA grads with technical skills. Columbia has responded in kind by adding courses on data, analytics and programming to its curriculum. Elsewhere, students have driven enrollments in coding classes. Harvard’s B-School Dean Nitin Nohria predicts an expansion for those who can unbundle higher education and “separate knowing, doing and being.” Later, he predicts that businesses successful at the unbundling will partner with “bundlers like HBS.”

As a graduate of a full-time, two-year MBA program, I’ve observed other changes as well. As the number of students interested in a full-time, two-year program has declined, many schools have added master’s degrees catering to employers and the markets they serve. Master’s enrollments in finance, accounting, management, marketing and human resource development have increased and absorbed some or all of the decline in the full-time program depending on the school.

As businesses change, so should the curriculum training graduates to become tomorrow’s leaders. In many cases, competition and technology force changes in business quicker than B- Schools can adapt their curriculum. Business degrees are but one of the professional degrees offered by colleges. In order for them to survive, they have to provide a relevant and marketable education to their graduates. Those who adapt quickest will likely be the most successful over the next decade, and beyond.

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Wally Boston Dr. Wallace E. Boston was appointed President and Chief Executive Officer of American Public University System (APUS) and its parent company, American Public Education, Inc. (APEI) in July 2004. He joined APUS as its Executive Vice President and Chief Financial Officer in 2002. In July 2016, he retired as APUS president and continued as CEO of APEI. In September 2017, he was reappointed APUS president after the resignation of Dr. Karan Powell. In September 2019, Angela Selden was named CEO of APEI, succeeding Dr. Boston who will remain APUS president until his planned retirement in June 2020. Dr. Boston guided APUS through its successful initial accreditation with the Higher Learning Commission of the North Central Association in 2006 and ten-year reaccreditation in 2011. In November 2007, he led APEI to an initial public offering on the NASDAQ Exchange. During his tenure, APUS grew to over 100,000 students, 200 degree and certificate programs, and approximately 90,000 alumni. In addition to his service as a board member of APUS and APEI, Dr. Boston is a member of the Board of Advisors of the National Institute for Learning Outcomes Assessment (NILOA), a member of the Board of Overseers of the University of Pennsylvania’s Graduate School of Education, a board member of the Presidents’ Forum, and a board member of Hondros College of Nursing and Fidelis, Inc. He has authored and co-authored papers on the topic of online post-secondary student retention, and is a frequent speaker on the impact of technology on higher education. Dr. Boston is a past Treasurer of the Board of Trustees of the McDonogh School, a private K-12 school in Baltimore. In his career prior to APEI and APUS, Dr. Boston served as either CFO, COO, or CEO of Meridian Healthcare, Manor Healthcare, Neighborcare Pharmacies, and Sun Healthcare Group. Dr. Boston is a Certified Public Accountant, Certified Management Accountant, and Chartered Global Management Accountant. He earned an A.B. degree in History from Duke University, an MBA in Marketing and Accounting from Tulane University’s Freeman School of Business Administration, and a Doctorate in Higher Education Management from the University of Pennsylvania’s Graduate School of Education. In 2008, the Board of Trustees of APUS awarded him a Doctorate in Business Administration, honoris causa, and, in April 2017, also bestowed him with the title President Emeritus. Dr. Boston lives in Owings Mills, MD with his wife Sharon and their two daughters.

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