Corporate Training Magazine

The Value of Today's MBA
Vol 1 Issue 2- Nov 2005

By Mark Robbins

How much value does an MBA offer? It's an ongoing evaluation question raised in business circles by companies and candidates alike. To find the answer, Queen's University School of Business put the question directly to those that really matter -- business leaders.

According to a recent survey of more than 400 Canadian executives, conducted for the Queen's School of Business by Toronto-based Environics Research, business leaders put great stock in the degree. Reported David Saunders, Dean of Queen's School of Business and Chair of the Canadian Federation of Business School Deans. "When you ask Canadian executives about who they prefer to recruit, their answer is loud and clear: 'We'll take the MBA.'"

The survey revealed that nearly eight out of ten executives say that all other factors being equal, they would choose a candidate with an MBA over one without. They identified the following reasons for preferring an MBA graduate:

42 per cent say they have a superior skill set;
23 per cent say they have greater familiarity with a variety of business disciplines;
23 per cent say they have had more exposure to a variety of business issues;
23 per cent say they're more qualified, and
21 per cent say holding an MBA demonstrates career commitment.

More than one-third (35 per cent) also indicated that ongoing business education and/or the attainment of an MBA degree is part of their company's employee development process for grooming leadership succession candidates.

The strength of our nation's business schools is not going unnoticed, as Canadian companies are also showing a propensity for home-grown talent.

This trend coincides with results from a May 2004 Environics Research Group study, which found that 79% of Canadian senior executives believe our business schools are on equal footing as their US counte4rparts. Results published in the Financial Times of London and The Economist have also identified that Canadian MBA programs have moved up in global rankings.

One of the main drivers of Canada's rise in the rankings is how the nation's business schools have adapted their programs to align with the evolving marketplace and the changing needs of businesses.

Collaborative Real-World Learning
Business doesn't operate within a vacuum, and neither should business education. Post-secondary institutes are increasingly focusing on creating a learning environment that simulates the real-world environment where candidates will be applying their knowledge.

The Integrative Core program at the heart of the University of British Columbia's MBA program, for example, provides the necessary business foundation in the traditional functional areas. The difference is that the Integrated Core is team-taught as one comprehensive course, reflecting the inherent complexity of the business environment. Subject areas are taught individually, as well as from an integrated perspective. This approach gives learners the opportunity to draw on the knowledge and experience of both faculty and fellow students in order to build collaborative and leadership skills working in teams. The end result is the development of a broad-based, senior-level strategic approach to business decision-making that mirrors the real-world business environment.

Similar programs at other institutions also incorporate real-world application of business theory. This can involve case studies based on current business situations in the news, or consulting projects where candidates work jointly and directly with corporations to address issues unique to their company environment. This balance of theory and practice prepares students to understand the realities of today's business environment, and to challenge those realities with new and provocative thinking.

Flexible Learning Schedules
The typical profile of an MBA candidate is a professional in their late 20's or early 30's who is already in the workforce and looking to further their career. This means that the learning environment must be flexible enough to accommodate their current work and family life schedules.

Part-time and evening programs have long been available. Now technology has brought a new dimension of flexibility to candidates. Through the use of broadband connectivity, the Centre for Innovative Management (CIM) at Athabasca University took a bold step forward by bringing their Executive MBA program to the digital world.

Introduced in 1994 as the world's first fully interactive online Executive MBA program, the AU MBA is Canada's largest Executive MBA program and is internationally recognized as one of the most respected online programs in the world.

One of the greatest aspects of the program is the flexibility it offers learners. The online format makes it feasible and practical to work on a high quality graduate management education while meeting commitments to work and family. Bridging conventional boundaries, students are able to share documents, presentations, designs, procedures and processes. The approach also capitalizes on the geographic, organizational and cultural diversity of students and faculty to challenge traditional assumptions, stimulate new ideas and share effective business practices.

Leadership Starts Inside You
The belief espoused at the University of Toronto's Rotman School of Management is that the most important leadership development work is self-reflection and feedback supported by a leadership development plan.

Daniel Cushing, director of the Omnium Global Executive MBA Program at the Rotman School explained, "In the past, (we) concentrated on developing strong analytical skills in our students, in the belief that smart people make smart managers. However research in the area of leadership effectiveness has revealed that high levels of self awareness and what we now call emotional intelligence (EQ), are better predictors of leadership success than traditional measures such as IQ."

In response, the School has now incorporated a series of leadership assessments to help its students identify leadership strengths as well as behaviours that could derail them in their leadership efforts.

"We now get our students to complete an emotional intelligence inventory. The results are correlated to a series of leadership competencies developed by the Centre for Creative Leadership to produce a personal leadership report. We have also added an executive coaching component to the Executive MBA program that provides every student with the opportunity to meet throughout the length of the program with an executive coach," reported Cushing.

All of this is further supported by a series of skill development seminars in cross-cultural communication, team building, negotiations, conflict management and decision-making.

While questions surrounding the value of an MBA will likely never stop being asked, our nation's business institutes continue to demonstrate to business leaders that the changing dynamics of corporations are being addressed and that candidates are developing the skills they need to succeed--for now and in the future.