Leaders at Business Schools believe the business education sector to be both robust in an uncertain world economy and open to expansive strategies, according to new AMBA & BGA research, canvassing the thoughts of more than 350 decision makers in the sector.
- 77% believe their School is doing well at communicating its unique selling points to potential students, but only 67% say it is doing well at helping students and graduates find the job they want.
- 51% report alliances with two to five other Business Schools, while 35% say they have alliances with 10 or more other institutions.
- 17% say their Business School is likely to open an overseas campus within the next three years.
- 60% say the calibre of applicants for their MBA programmes has increased over the past five years.
- Only 21% think their Business School is currently doing ‘very well’ at taking the needs of different generations into consideration when designing programmes.
AMBA & BGA’s Business School leaders’ study aims to provide fresh insight into how Business Schools are operating, as well as their plans to expand and adapt their offering in today’s economic climate.
Right now, Business School leaders largely believe that their Business School is high-performing with almost nine in 10 (84%) rating their institution as either ‘very good’ or ‘excellent’.
On balance, how would you rate your Business School?
Excellent | 34% |
Very good | 50% |
Fairly good | 14% |
Neither good nor poor | 1% |
Fairly poor | 0% |
Very poor | 0% |
Terrible | 0% |
Don’t know | 1% |
Leaders have a similarly positive perception of their School’s MBA offering, with the same proportion (85%) rating the programme as being at least ‘very good’.
On balance, how would you rate your MBA programme?
Excellent | 40% |
Very good | 45% |
Fairly good | 14% |
Neither good nor poor | 0% |
Fairly poor | 0% |
Very poor | 0% |
Terrible | 0% |
Don’t know/Not applicable | 1% |
When asked how their School is performing in terms of external factors, survey respondents are most likely to say that their institution is doing well at ‘communicating the defining elements of your Business School which differentiate it from others to potential students’ and ‘delivering social media’ (77% believe they are doing either ‘fairly well’ or ‘very well’ at both).
Leaders were also asked to rate their Business School in terms of the impact it delivers on a range of measures. They were asked to consider the impact of each on a scale of zero to 10, where 10 reflects the maximum perceived impact and zero the least. The greatest level of perceived impact among responding Business School leaders is related to interpersonal development. Almost two thirds of leaders (65%) give an impact rating of at least eight out of 10 for ‘delivering networking opportunities’ and ‘improving confidence’. A similar proportion of leaders (64%) also provide a rating of at least eight out of 10 for ‘improving people management skills’.
When asked about the performance of their competitors, seven in 10 leaders (71%) say that the Business Schools with which they compete are ‘very good’ or ‘excellent’, while a quarter (25%) say they ‘fairly good’. These results are mirrored in perceptions towards MBA programmes with which they compete.
On balance, how would you rate the Business Schools with which you compete?
Excellent | 23% |
Very good | 48% |
Fairly good | 25% |
Neither good nor poor | 3% |
Fairly poor | 0% |
Very poor | 0% |
Terrible | 0% |
Don’t know | 1% |
On balance, how would you rate the MBA programmes with which you compete?
Excellent | 22% |
Very good | 49% |
Fairly good | 23% |
Neither good nor poor | 3% |
Fairly poor | 1% |
Very poor | 0% |
Don’t know/Not applicable | 3% |
Optimism about the future of Business Schools
More than nine in 10 leaders (94%) are optimistic about the future of Business Schools in their own country. Two fifths of leaders are ‘very optimistic’ (41%) and more than half are ‘fairly optimistic’ (54%). Just 4% of leaders are ‘not very optimistic’, while none of the leaders are ‘not at all optimistic’. This optimism is reinforced by a strong belief that Business Schools are well positioned to grow capacity in the next three years. More than eight in 10 leaders (84%) are confident, while just over one in 10 (13%) are not confident.
Partnerships
Seven in 10 leaders (68%) report that their Business Schools have formal corporate partnerships with other organisations, while a quarter (24%) say they do not. Meanwhile, almost one in 10 (8%) do not know whether their Business School has a formal arrangement with another company.
Formal alliances between Business Schools
Two thirds of leaders (65%) say their School currently has formal alliances with other Schools, while more than a quarter do not (27%) and almost one in 10 (8%) do not know. The alliances that exist vary in size. Approximately half of leaders (51%) say that their alliances comprise of two to five Schools, one in 10 (10%) indicate links with between six and nine Schools, while more than a third (35%) say they have alliances with 10 or more other Schools. The remaining leaders (4%) were unsure of how many Schools with which they have an alliance.
Leaders who indicated that their School did not have any formal alliances with other Business Schools were asked if they are likely or unlikely to forge any in the next three years. On balance, marginally more leaders say that this is more likely than unlikely. Three in 10 leaders (30%) say that new alliances are likely, while almost a quarter (23%) say they are unlikely.
Relationships with affiliated universities
Approximately three quarters of leaders (76%) report that their Business School is closely affiliated to a university. More than a fifth (22%) indicate that their School is not affiliated with another higher education institution, presumably meaning their School operates as a single entity. The remaining 2% are unsure.
Among those reporting an affiliation, four in five leaders (80%) are satisfied with the current relationship between their Business School and the university, which includes a third (33%) who are ‘very satisfied’. Approximately one in 10 leaders (9%) are dissatisfied with this relationship. The main reason given for their dissatisfaction with the relationship between their own institution and its affiliated university is lower levels of Business School autonomy. This perception is linked to a feeling that their Business School is treated more like another department within the institution, rather than a separate entity. A further reason cited was that the university’s decision-making process is too slow compared to the more dynamic procedures of the Business School.
The levels of satisfaction held by leaders regarding their School’s relationship with its affiliated university is more than matched by the proportion of leaders who are optimistic about their future relationship with the university. Almost nine in 10 (89%) are optimistic.
Leaders were then asked how well they believe their Business School is collaborating with their affiliated university. They are most likely to think that their Business School successfully collaborates on ‘issues of governance which impact both institutions’ (87% report it is something their School does ‘very well’ or ‘fairly well’). The perception that strategic, big-picture, initiatives are seen to be the best-performing collaborations is a continuing theme. The next most highly rated collaborations are ‘strategic decisions relating to the commercial strategy of both institutions’ (79% say they are doing well at this), followed by ‘utilising the combined physical capital resources of both institutions’ (77%) and ‘utilising the combined intellectual property of both institutions’ (73%).
Collaborations with affiliated universities in terms of ‘sharing teaching staff’ (70%), ‘marketing of programmes’ (66%), ‘sharing research staff’ (65%) and ‘sharing operational staff (59%) are less likely to be cited as areas in which partnerships are yielding positive feedback, although the statistics show that majority reflect positively on the benefits in each of the areas.
When asked what could improve Business School leaders’ working relationships with their affiliated university, the desire for greater levels of autonomy from the university stood out as a theme, illustrating the importance of striking a balance between independence and cooperation. Some participants suggested that profits generated by the Business School should be fed back into the School directly, rather than going into a central fund at the university.
Future mergers and international expansion
Leaders were asked whether it is likely that their Business School will merge with another one in the next few three years. The great majority do not think a merger is very likely. Almost seven in 10 leaders (68%) think it is ‘not at all likely’ and a fifth (19%) ‘not very likely’. Meanwhile, just 3% think it is ‘very likely’ and 3% ‘fairly likely’.
Leaders were then asked how likely it is that their Business School will open an overseas campus within the next three years. Almost a fifth (17%) say it is likely that this will occur.
Perceptions of applicant quality
The survey also asked leaders whether they felt the calibre of applicants, across a suite of qualifications, had increased or decreased, compared to five years ago.
Leaders are more likely to think that the standard of applicants has increased across each of the qualifications available at Business Schools, rather than decreased or stayed the same. They are most likely to say that the calibre of applicants has increased for MBAs (60%), followed by master’s and undergraduate degrees (55% for both). Just 8% say the calibre of doctorate applicants has decreased, the smallest proportion who feel this way about applicants of all the qualifications.
Adaptation of programme content
There is a responsibility for Business Schools to adapt their programmes to ensure they are relevant, not only so that programme content is aligned to industry trends, but also so that their teaching approaches and formats are suitable for different generations. Leaders were asked specifically how well their School is at taking into consideration the needs of different generations when designing programmes.
Almost four in five leaders (78%) think Schools do take into consideration the facets of different age groups when designing programmes, although overall just a fifth (21%) think their Schools do this ‘very well’. It should also be noted that a significant minority (16%) say their School does not consider generational differences very well.
Andrew Main Wilson, CEO of AMBA & BGA, said: ‘The study finds that Business School leaders typically feel optimistic about the future of the institution and the sector in which they work, as well as those with whom they compete.
‘This is underpinned by leaders rating Schools highly across a range of factors and in the belief that the calibre of applications to a range of programmes is increasing. It is also underpinned by a wider optimism in the future of Business Schools. These positive perceptions show that leaders foresee opportunities for growth and development, despite the challenging global economic climate.
‘The study has also shone a light on areas where more can be done, even when perceptions are generally positive. For example, most Business Schools are affiliated with a university, and while the great majority are satisfied with these partnerships, there appears to be an appetite to balance the power dynamic between the institutions more evenly.
‘Looking outside their institutions, most leaders have a positive view of the value corporate partnerships have had on their Business School, especially concerning their image, and the positive impact that these partnerships have on their students. This is important, as it suggests that well thought through strategic partnerships with organisations can make a real difference to the experiences of Business Schools. It is also noteworthy that a significant minority of leaders believe it is likely that Schools will open overseas campuses soon, something that could have a profound impact of their student coverage, as well as their international reputation and brand.
‘The study demonstrates that leaders at Business Schools believe the sector to be both robust in an uncertain world economy and open to expansive strategies. The management education community and beyond should take confidence from the conviction Business School leaders have about the perceived positive future of the higher education sector.’
To read the full report of the findings, incorporating further analyses, graphs and charts, visit www.associationofmbas.com/research
ENDS
Notes to editors
For more information, or for interviews or access to charts, contact:
- Ellen Buchan, Research and Insight Assistant, AMBA & BGA: e.buchan@associationofmbas.com
- David Woods-Hale, Director of Marketing and Communications, AMBA & BGA: d.woods@assocationofmbas.com
Methodology
AMBA & BGA contacted leaders from within its Business School networks to invite them to participate in an online survey between 14 August and 30 September 2019. This study forms a three-part series of reports that seek to understand how Business Schools are planning for the future.
In total, 358 Business School deans, directors and other decision makers globally participated in this study. In instances where a survey participant did not complete the full survey, the responses to questions they did complete are included. In total, there were 222 full participants and 136 partial participants. Where figures do not sum to 100 or to a combined figure, this is due to rounding. The data is unweighted as the country profile of participants broadly matches that of AMBA & BGA.
The participating Business School leaders work at institutions that serve a range of cohort sizes. Approximately two in five (41%) are from Schools with 0-500 students and almost a quarter (23%) are from institutions with 501 to 1,000 students. Smaller proportions of leaders are from larger institutions, with 16% working at Schools that enrol between 1,001 and 3,000 students and 19% enrolling more than 3,001 students.
The regional composition of participants is broadly comparable with the geographical coverage of AMBA & BGA Schools. More than two in five Business School leaders (46%) are based in Europe, approximately one in six (16%) are based in the UK and more than one in ten (12%) are based in Latin America. Meanwhile, the remainder of the sample was from Africa (7%), China (including Hong Kong, China) (6%), Asia and the Middle East (excluding China and India) (5%), India (4%), North America and Caribbean (3%) and Oceania (1%).
