MBAs get with the times

The advanced business degree has been criticised in the past for being too theoretical but recent changes are pleasing the corporate world. For a long time master of business administration (MBA) courses have been criticised for turning out graduates who have a wealth of knowledge but are not always able to apply it in an everyday work situation. Like any degree, sometimes the knowledge can be a tad too theoretical or the recent graduate isn’t able to think creatively to solve a problem or doesn’t fully understand the nature of the business. Business schools are now starting to address this gap by involving businesses in a more meaningful way undertaking a variety of “real life” projects giving the students a reality test to apply their theory to knowledge. Andrew Herrick, principal of Booz & Company, a global management and strategy consulting firm, is in the unique position of having completed an international MBA from the Wharton School at the University of Pennsylvania whilst working closely with the Australian Graduate School of Management at the University of NSW. “We have worked with both the AGSM and Melbourne Business School for a number of years now,” Herrick says. “We do recruit from both as well as other leading US and European business schools. The key for us is to find students who have the ability to solve problems in a structured manner. “Booz & Company like to work with business schools in order to help them understand what we are looking for in the workplace and to ascertain that we are attracting the right type of graduate.” In 2012, the AGSM MBA program was ranked as the leading full-time MBA program in Australia and 41st in the world in the Financial Times (UK) ranking of the top 100 MBA programs globally. It is also the sixth year running that it has ranked in the world’s top 50 MBA programs. “We offer students the opportunity to work closely with business in one of our elective subjects, Special Projects,” says Professor Mark Stewart, academic director of AGSM MBA programs. “Our MBA involves active involvement with the business world having leading companies such as McKinsey & Company, Deutsche Bank and other international leading companies regularly present and give feedback along with career guidance officers on campus. “The key to our MBA, which we believe makes graduates better prepared, is the emphasis on the global perspective (65 per cent of students are from overseas), a focus on risk management on business – particularly since the GFC – and a heavier focus on integrated learning which means while the core subjects are taught, there is also emphasis on the softer skills of business.” In Australia, 28 universities offer MBA programs either full-time or part-time. Some schools call the part-time program an Executive MBA. The fees are not cheap ranging from $14,000 up to $55,000 for local students and higher for international students, with no guarantee of a pay rise, promotion or new job at the end of it. If your employer is not paying, it can be an expensive exercise in gaining a post-graduate qualification. Most universities undertake a thorough five-year review of their MBA course with individual subjects slightly modified every 12 months to keep abreast of the changing nature of the microeconomic and macroeconomic conditions. But still, there is never a shortage of students and universities see this as an important income earner. Universities also recognise that the courses need to be relevant to business in order for the students to keep coming back. Business links In an effort to attain more international exposure for students in real-life business learning, the UTS Business School is teaming up with an international business school. “UTS Business School is collaboratively working with our colleagues at Fox Business School (Temple University, Philadelphia) on designing and delivering a subject, Integrated Business Consulting,” says Dr Christine Burton, associate dean at the UTS school. “The school has a track record in embedding consultancies and live cases in the curriculum but the beauty of working with Fox is the particular methodology they bring in engaging industry specialists who act as project advisers and mentors for the students,” says Burton. “These industry advisers are drawn from the executive level of companies and work alongside our academics to ensure students receive not only an optimum theoretical input but a practical experience that cannot be substituted. They bring a wealth of knowledge that only practitioners have accumulated and generously share this with young aspiring business students. “This type of engagement is rare and of great value to our students and to our industry advisers who can contribute to ensuring the next generation of business people are informed, smart, ethical and rigorous in delivering what a firm requires.” Companies such as Conservation Volunteers, Eco Whisper wind turbines and Willis Reinsurance Australia, are working with both business schools. “We have been able to source five students from Fox and five from UTS to help us out with a project,” says Michael Le Messurier, Eco Whisper business development manager. “Over a period of three months they put together an international business strategy, which was needed by us and it was a quality document that we intend to implement over the next 18 months.” Green projects Renewable Energy Solutions Australia is the owner of the world’s most advanced wind turbine known as the Eco Whisper Turbine. The Australian designed and manufactured wind turbine operates virtually silently, collects wind more efficiently than its competitors and can be lowered in extreme weather conditions. “We are only a small team of six and we definitely needed some help and I believe we got the crème de la crème of business students,” Le Messurier says. “I would definitely employ some of those graduates if the opportunity arises in the future.” Monash University also run a corporate project linking both technical and leadership skills to analyse and formulate solutions to a real business or management problem. Cricket Australia, the Royal District Nursing Service, National Disability Services and Destination Melbourne – the regional tourism organisation for Melbourne – are just some of the companies that have benefited from this project allowing a student to link academic knowledge to professional management and business practice. “We needed a three-year strategic planning report to review our working procedures, succession planning, workforce development plan, the challenges ahead and identifying risks and opportunities in the future,” says Chris Buckingham, chief executive officer of Destination Melbourne. “Three students, one from Monash University and two from the University of Newcastle, worked together running surveys, overlooking our business and all up spent one month compiling the report. “We were really happy with the outcome of the report and took it to the board for their approval. We have seen real value in what they did and have been a primary beneficiary of MBA students from both schools. “They have made a practical and meaningful contribution to the workplace and there are a lot of businesses who could use their help.” Associate Professor Amanda Pyman, MBA director at Monash, say the corporate projects, combined with the leadership and personal development program, set Monash apart. “The corporate projects are run over the final quarter of the course allowing the students to utilise the qualitative and analytical skills covered in the first 12 units in a practical manner,” Pyman says. “We want students to work on a ‘live’ business problem as we believe this gives them a great chance to understand an issue facing a business that needs to be solved. Whenever we have a course review business has input as not only is academic accreditation important but it is essential that we have subject matter of relevance to the business world.” The MBA program at Monash is accredited by the Association of MBAs (AMBA) and the European Quality Improvement System (EQUIS), whilst being ranked third in the world by the Economist Intelligent Unit Rankings in 2010. “It is important that MBA courses have strong relationships with businesses and Not For Profit organisations in order for both to learn and work together for the benefit of all parties,” Pyman says. The MBA program at the University of Adelaide is another school to build strong relationships with the business community. “The Adelaide MBA has a rigorous curriculum which prepares graduates to deal with complex management issues in the 21st century,” says Damian Scanlon, MBA director, University of Adelaide. “The program is reviewed every five years by two separate boards to ensure it is relevant and meets the changing needs of global businesses. “We work closely with CPA Australia and the Australian Institute of Company Directors and regular feedback is sought from all MBA students in relation to the course content and its teaching style. “The Adelaide MBA is among 5 per cent of business schools worldwide to be awarded the most prestigious accreditation with the Association to Advance Collegiate Schools of Business, so we are continually benchmarked against world’s best practice.” Rethinking the course Just over two years ago three Harvard Business School professors released a book entitled, Rethinking the MBA. Professors Datar, Garvin and Cullen spent years interviewing leading international businesses, students and academics from internationally acclaimed business schools to find out what MBA courses needed to change in order to become more relevant. They also took a close look at the curriculum to see if it was what recruiters needed in a day-to-day workplace. It has often been a criticism of MBAs that students leave with core theoretical skills but sometimes the practical application of critical thinking in the workplace – particularly in fields that they are unfamiliar with. The authors identified eight unmet needs from MBA programs being: • Gaining a global perspective. • Developing leadership skills. • Honing integration skills. • Understanding the role, responsibilities and purpose of business. • Recognising organisational realities and the challenges of implementation. • Thinking creatively and innovatively. • Thinking critically and communicating clearly. • Understanding the limits of models and markets. One of the keys they suggested for business schools to go forward was to adopt new pedagogy and include new learning areas. They emphasised “hands-on exercises and experiential learning”. “I think the review concluded has helped change MBA programs,” Professor Mark Stewart, academic director of AGSM MBA programs, says. “It was a comprehensive five-year study that has helped both academics and businesses have a better understanding of each other and what is needed.”