What’s In It For Them?

When Evaluating MBA Program Formats, Take A Closer Look at the Incentives Driving Business Schools

At that last information session you attended, the Associate Director of Admissions gave an impressive presentation and sold you on the idea of pursuing your MBA part-time.  Not only would you be able to keep your job to attend classes at night, at the end of three years, you would also have a newly minted degree along with additional years of full-time work experience and maybe even another promotion.  As the seemingly endless possibilities raced through your mind, the presenter also claimed you would get the same quality of education as the full-timers complete with the same professors and career placement opportunities.  A part-time MBA seemed like the obvious choice.

The advantage you may gain by continuing on a steady career trajectory while also working towards an MBA, may be worth more than you could have ever imagined. However, before you make the final decision on whether or not to pursue a full-time, part-time, or executive MBA, you must evaluate the real advantages and disadvantages of each format.  Start by looking at the incentives driving business schools.

The Full-Time MBA and Rankings:

Full-time MBA programs in the U.S. are driven by rankings.  Business schools are incentivized to do everything they can to land the top slots in the Business Week and U.S. News and World Report rankings, which are released annually in March and November.  Rankings systems that evaluate full time programs have the most time intensive methodologies that incorporate a number of quantitative factors, so schools have a lot to be accountable for.   Factors including the average GMAT score, GPA of incoming classes, student evaluations of the school, and the percentage of graduates employed within three months of graduation are evaluated.  So what does this mean for you as a prospective applicant to a full-time program?  It means that because business schools devote a lot of time and attention to upholding competitive admissions standards along with a highly qualified career placement staff, you will be entering a full-time class that is far more diverse and competitive than its part-time or executive counterparts.  Your full-time experience will also be complete with a plethora of resources devoted to helping you find an internship and job post-MBA.  Applicants who apply to full-time programs come from all around the world and those who are accepted meet stringent admissions standards that require competitive GMAT scores and GPAs, an impressive professional track record and an ability to set themselves apart and articulate their short and long term goals throughout their essays and interviews.  As a full-time admit, you may also qualify for generous merit-based scholarships, that is if the schools want you and believe you will contribute favorably to their class and rankings placement. 

The Part-Time/Executive MBA Programs and Revenue:

Merit based scholarships are not available in part-time or executive programs.  This is because part-time and executive MBA programs are huge revenue-generators, rather than rankings generators, for the schools.  Admissions directors are incentivized to fill their classes even if it means compromising the same admissions standards applied to their full-time applicants and/or painting a rosier picture to prospective students regarding the similarities between the full-time and part-time experience.  It is important to note that part-time and executive rankings are based on subjective data, so admissions statistics don’t play an important role.  When it comes to part-time and executive admissions standards, it is also important to note that the bar is set lower simply because part-time and executive applicants are a fairly self-selecting group.  They are typically only those who are living and working in the city where the MBA program is based (there are some exceptions for EMBA programs).  So what does this mean for you as a prospective applicant to a part-time or executive program?  It means admissions will be less competitive, but you will still be able to get a degree from a prestigious business school, one you may not have been granted access to if you applied to their full-time program; You will have a less diverse class with far fewer international classmates than if you were to enroll in the full-time program; You won’t qualify for any scholarships, but you won’t forgo the opportunity cost of quitting your job for two years; In their sales pitch, schools may say you will be taught by the same faculty members as the full-time program, but usually this isn’t entirely the case; Schools may also say you will have access to the same career placement resources, but this is usually never the case.  You may not even need career placement assistance, especially if you just want to progress at your current company.  However, if you want to switch careers entirely, a full-time program will be a better bet for you.

Just like the contrasting rankings methodologies employed for full-time and part-time programs, the differences between the two MBA formats are stark.  Don’t let any sales pitch convince you otherwise.  Take the time to get the right information to help you make the best decision for your future.

Top Ten Things To Consider When Applying To An EMBA Program Part I: GMAT, Academic Records and Recommendation Letters

Executive MBA programs have never been looking for just good students.  They are searching for leaders who will continue their positive trajectory of success after the program is complete. They want to build a class comprised of students who have a diverse variety of talents, qualities, attitudes and backgrounds. 

So, what does this mean for your applications?  Let’s examine each piece of the puzzle.

 GMAT

The Graduate Management Admissions Council created the Graduate Management Admissions Test (GMAT) in 1953 to gauge a prospective students’ ability to compete in the academic rigor of graduate business programs.  The exam, which is 1 of only 2 intellectual measures on the application, was recently updated with an additional section.  It tests verbal skills and analytical writing ability, quantitative skills as well as an aptitude for integrated reasoning.  Most full-time MBA programs value the test’s findings and require the test for admissions, but EMBA admissions committees differ in their opinions regarding the GMAT.  Therefore, you will only be required to take the GMAT when applying to some programs.

--GMAT preparation is critical:  

If you are applying to EMBA programs that require you to take the GMAT, preparation is key.  Give yourself at least 3 months and pick the preparation option that is best for you.  You can either self study using one of the many GMAT guides on the market, take a GMAT prep class or hire a private tutor.  It is important to note that you can re-take the test multiple times because the admissions committees typically only take the highest score.  While the GMAT may seem like a drag, standardized tests continue to be widely used in the higher education admissions process and valued by admissions officers.  You don’t want your GMAT score to be the one aspect of your application keeping you out of your top choice program. 

Academic Records/Transcript

The content and requirement of a transcript on a graduate business application is set in stone.  Applicants will never be able to change that low grade they may have received in college math and admissions deans will never be able to standardize the rigor of classes or grades given at other institutions.  It is simply another predictor, like the GMAT, of future academic achievement.

--The transcript is telling, but only 1 piece of the puzzle:  

When evaluating your transcript, admissions committees will want to ensure you challenged yourself throughout your academic career, especially in quantitative courses, and could maintain a solid GPA.  They will assume, if you were a dedicated student throughout your undergraduate work, you will succeed in the EMBA classroom.  If you have poor grades, you can’t go back and change them. However, a high GMAT score, additional coursework and an essay explaining weaknesses can help to mitigate the negative influence of a poor transcript.

Recommendation Letters

Most graduate business programs require 2 or 3 letters of recommendation, so it is important to make strategic decisions when choosing recommenders.  You will also want to ensure their messages align with your overall application strategy. 

--Choose the right recommenders:  

Choose recommenders who know you well and who will sing praises about your candidacy and fit.  Don’t get the distant CEO to write the letter because you think admissions committees will be impressed.  Identify those supervisors who have worked closely with you and can provide specific examples of your leadership and innovation potential.  The one exception here is if you are connected to a prominent donor or decision maker at the program to which you are applying.    

--Provide recommenders with background information:

If your recommendation letter can provide specific examples and add depth to your position, they could add real value to the admissions process.  In order to achieve this, you will want to provide your recommender with substantial background information – a sample essay or two and some examples that could help them illustrate specific qualities.  Ideally, each recommendation will complement the qualities you’ve brought out the essays, resume and other recommendation letters, by providing evidence of specific professional accomplishments.  You want each application piece to work together, emphasizing different areas of strength and, ultimately, completing the puzzle.   

The application process may seem daunting, but the rigorous admissions standards applied will lead to an unparalleled EMBA experience, a classroom where each seat is taken by a talented leader who is more than merely a test score and a transcript.

Innovation is Key. Is Graduate Business Admissions the Exception? Part III: Getting to Know the Applicant

It was decided long ago, in graduate business school admissions, that pure intellectual prowess does not, alone, predict future success.  Factors, unrelated to intellect, like motivation and social skills were also considered crucial. Today, not much has changed.   The admissions process is nearly identical to the one used by the first students at Chicago’s EMBA.  This is because MBA programs have never been looking for just good students.  They are looking for leaders who will continue their positive trajectory of success after the program is complete.  Like the officials of the Ivy League, the MBA admissions process is not simply a matter of academic brilliance.  Admissions committees want a student body with a diverse variety of talents, qualities, attitudes and backgrounds. 

The question, then, is not whether the goals of the admissions process are out of line.  The question is whether or not the admissions tactics employed by MBA programs are effective in evaluating top management potential.  Let’s examine each piece of the puzzle.     

Getting to Know You: The Interview and Essays

Another application staple, the essays, are often cited by admissions directors to be the most important part of the application.  They play a critical role in painting a picture of your potential by telling your personal and professional story and setting the stage for the other application components.  A well-written essay examines the value you can bring in terms of leadership, innovation and teamwork, your fit with a particular program and how you stand out overall.    

The interview, too, is arguably one of the most important parts of the business school application.  Not only must you look an admissions officer in the eye to discuss the contents of the paper application you’ve been refining for months, but you must also convince them of your strong communication abilities and the value you will bring into the classroom.

Behavioral interviews are the most widely used in graduate business programs, but could there be a better way?  For applicants, the behavioral interview is usually preferred because it is easier, but in the long run, a case format could prove to be a better evaluative tool.  Ultimately, being surrounded by top talent will make your experience as a student more enriching. 

Case interviews are typically the work of consulting companies and prominent financial firms, largely because they force an applicant to think on their feet, respond under pressure and analyze a complex situation in a finite amount of time.  Then, why wouldn’t case interviews be an important evaluative tool for MBA programs?

“The biggest concern, says Bouffides, are efficiency issues.  With so many applicants in full-time MBA admissions, it would pose a resource challenge to ask admissions officers to conduct a case interview for each and every student they are considering.  EMBA admissions are different, he says, so case interviews may provide a great tool for differentiation. The EMBA applicant pool is self-selecting and, therefore, much smaller.”

Rather than doing different, when we innovate, we do the same better.  The ultimate goals of MBA admissions committees will remain the same, but as future students and alumni of MBA programs, if we can encourage constant innovation in the selection processes of our classmates, our academic experiences will be richer and the programs, from which we graduate, stronger.

Innovation is Key. Is Graduate Business Admissions the Exception? Part II: Assessing Professional Competence

In 1943, when the first Executive MBA Program yielded a class of 52 students, business school admissions processes largely mirrored those practiced in the Ivy League.  Applicants completed a personal facts section and clearly outlined their extracurricular and professional activities.  Recommendation letters, written by persons who knew the applicant well and could speak to their character, were sent to the institution.  The applicant completed personal essays so the admissions committee could gauge the applicant’s aptitude for leadership.  And, finally, the interview would look at the more subtle indicators of future success.  Academic achievement was just one of the 4 pieces.  Was the admissions committee downplaying the value of intellectual accomplishment?

The answer is yes, because it was decided that pure intellectual prowess does not, alone, predict future success.  Factors, unrelated to intellect, like motivation and social skills were also considered crucial. Today, not much has changed.   The admissions process is nearly identical to the one used by the first student’s at Chicago’s EMBA.  This is because MBA programs have never been looking for just good students.  They are looking for leaders who will continue their positive trajectory of success after the program is complete.  Like the officials of the Ivy League, the MBA admissions process is not simply a matter of academic brilliance.  Admissions committees want a student body with a diverse variety of talents, qualities, attitudes and backgrounds. 

The question, then, is not whether the goals of the admissions process are out of line.  The question is whether or not the admissions tactics employed by MBA programs are effective in evaluating top management potential.  Let’s examine each piece of the puzzle.     

 Assessing Professional Competence: Recommendation Letters and Resume

The quality and quantity of an applicant’s work experience is key when determining top management potential, so a polished resume is an absolute must.  But, what about recommendation letters?  Do they really help to set an applicant apart from the pack?  In nearly every circumstance, an applicant will choose a recommender who will gloat about their strengths and minimize or barely mention any perceived weaknesses.  In the competitive world of admissions, choosing a recommender, who will paint the picture of an all-star, seems to be the smart thing to do, but is this really a productive process for admissions committees?  Isn’t there a better way to gauge top management talent?

Evan Bouffides, Associate Dean and Director of MBA Admissions at the Olin Business School at Washington University in St. Louis, says that while recommendation letters may serve as a point of differentiation for executive business programs, full time MBA admissions is a different story.  “We no longer require recommendation letters in our full-time MBA application because we found the letters didn’t provide us with a point of differentiation.  More often than not, he says, I thought a letter’s content did not provide honest insight about a candidate.  I could also never be completely sure that the name signed at the bottom was the writer of the recommendation.”

Rather than doing different, when we innovate, we do the same better.  The ultimate goals of MBA admissions committees will remain the same, but as future students and alumni of MBA programs, if we can encourage constant innovation in the selection processes of our classmates, our academic experiences will be richer and the programs, from which we graduate, stronger.

Innovation is Key. Is Graduate Business Admissions the Exception? Part I: Assessing Academic Potential

Touted in nearly every business blog or book, the ability to innovate is the Holy Grail of capitalist enterprise.  The advent of the MBA program was in itself an innovation, a response to the massive business model overhauls during the industrial revolution.  Later, the end of World War II brought continued innovation, aggressive growth in the automobile, aviation and electronic industries and, in 1943, the creation of the Executive MBA at the University of Chicago.  Since then, like business, management educations have continued to evolve. What hasn’t changed so much is the evaluative process employed by admissions committees, the gatekeepers at top programs.

In 1943, when the first Executive MBA Program yielded a class of 52 students, business school admissions processes largely mirrored those practiced in the Ivy League.  Applicants completed a personal facts section and clearly outlined their extracurricular and professional activities.  Recommendation letters, written by persons who knew the applicant well and could speak to their character, were sent to the institution.  The applicant completed personal essays so the admissions committee could gauge the applicant’s aptitude for leadership.  And, finally, the interview would look at the more subtle indicators of future success.  Academic achievement was just one of the 4 pieces.  Was the admissions committee downplaying the value of intellectual accomplishment?

The answer is yes, because it was decided that pure intellectual prowess does not, alone, predict future success.  Factors, unrelated to intellect, like motivation and social skills were also considered crucial. Today, not much has changed.   The admissions process is nearly identical to the one used by the first student’s at Chicago’s EMBA.  This is because MBA programs have never been looking for just good students.  They are looking for leaders who will continue their positive trajectory of success after the program is complete.  Like the officials of the Ivy League, the MBA admissions process is not simply a matter of academic brilliance.  Admissions committees want a student body with a diverse variety of talents, qualities, attitudes and backgrounds. 

The question, then, is not whether the goals of the admissions process are out of line.  The question is whether or not the admissions tactics employed by MBA programs are effective in evaluating top management potential.  Let’s examine each piece of the puzzle.     

 (1.) Assessing Academic Potential: The GMAT and Transcripts

The Graduate Management Admissions Council created the Graduate Management Admissions Test (GMAT) in 1953 to gauge a prospective students’ ability to compete in the academic rigor of graduate business programs.  The exam, which was recently updated with an additional section, tests verbal skills and analytical writing ability, quantitative skills as well as an aptitude for integrated reasoning.  Most full-time MBA programs value the test’s findings because it makes their evaluative jobs easier by leveling the playing field.  This has proven to be especially important when applicants are coming from a wide array of industries and educational backgrounds.  But, is the GMAT an effective predictor of academic success?

Many proponents of the exam agree that analytics, reasoning skills and aptitude are vital in EMBA programs.  With no standardized measure, some schools say, programs may accept students who are not qualified academically, especially in the heavy quantitative courses.  Schools who require the GMAT for EMBA admission say that while work history, prior degrees and leadership experience are important, they are not a good gauge of an applicant’s analytical skills.

Critics of the GMAT’s usage in EMBA admissions say it is not a valid test of an applicant’s strengths. Instead, they say, schools should base decisions for enrollment on academic records and work history, aspects of the application the GMAT doesn’t measure.  These programs are clearly more concerned with an applicant’s professional career and the value their experiences will add to the classroom dynamic.                      

Business schools will continue to engage in the debate regarding the priority given to the GMAT in admissions, but one thing is for sure.  The GMAT is not a test of future management success.  It is merely a predictor of success in an applicant’s first year of business school.  

Like the GMAT, the transcript is another predictor of future academic achievement.  For applicants and admissions officers alike, the content and requirement of a transcript on a graduate business application is set in stone.  Applicants can’t change its material and admissions deans won’t ever be able to standardize the rigor of classes or grades given at other institutions.  It is what it is, a staple of most applications to academic programs in higher education.  

Rather than doing different, when we innovate, we do the same better.  The ultimate goals of MBA admissions committees will remain the same, but as future students and alumni of MBA programs, if we can encourage constant innovation in the selection processes of our classmates, our academic experiences will be richer and the programs, from which we graduate, stronger.