[global hr forum 2014] global trends in management education
DESCRIPTION
The world’s famous MBA schools educate their students upon the idea of that students could develop leadership skills with training rather than being born with a talent. Many graduates from Harvard, Stanford, MIT, and other MBA programs are now leaders such as presidents of countries, global CEOs, CEOs of nonprofit organizations, and so forth. What are the secrets of MBA schools’ education in raising their students to become leaders of organizations? In this session the President & CEO of the Graduate Management Admission Council(GMAC) will provide insights into the trends and developments within graduate management education and the areas of future growth.TRANSCRIPT
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The Graduate Management Admission Council®
Global trends in management education
Sangeet Chowfla, President and CEO
Global HR forum
Seoul, 6th, Nov 2014
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Who We Are GMAC is a global organization of business schools providing services to 6000 programs in 2100 schools worldwide
Our Vision
GMAC will be the global leader in connecting talent and aspiration with opportunity.
Our Focus Areas
Advocate for graduate management education and its value to individuals and society.
Grow and diversify the candidate pool— globally and regionally.
Develop assessments to meet global management education needs.
Extend the value to schools of our products, services, and industry knowledge.
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Over 10 million students
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GMAT Exams Taken by Testing Year GMAT volume hit records during recessions of 1981, 1991, 2002, and 2009. In 2012, GMAT volume reached a new high before the launch of Integrated Reasoning.
Pre
-IR
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Connecting Talent & Aspiration with Opportunity
Connect
Fill
Convene
Find
Understand INDUSTRY PROFESSIONALS
SCHOOLS
CANDIDATES
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The GME market is…
Big Global Diverse
6
Nearly 7 million STEM-B graduates with 1 million management admission tests annually
6.7m graduate with Bachelor degrees1
2.7m can speak English2
~1m GME admission tests are taken
1 Bachelor degrees in Business, Science or Engineering; GMAC estimate based on UNESCO data 2 Estimates based on HE system language and official languages; default value is 10%
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Regional GMAT Trends
Testing by residents in Asia and the Pacific represented 35% of global testing in TY2014, up from just 16% in TY2000.
Source: GMAT trends by testing year and region of residence.
Americas
AsiaPac
EMEA
2000 2005 2010 2014E
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50 253 370 573 735 750 965 1,041 1,303 1,370 1,809 2,426 2,739 3,231 3,479
5,249 6,670
8,087 8,861
16,248 16,347
19,975 32,407
35,549 80,145
Masters in Educational LeadershipMasters in Communications
Masters in Engineering ManagementMasters in Entrepreneurship
Masters in Real EstateMasters in Hospitality
Masters in Health AdministrationMasters in HR, Ind. Relations, or Org. BehaviorMasters in Public Admin. or Public Policy Mgt.
Masters in Supply Chain Mgt, Logistics, or Ops.Masters in International Business
PGD - 2yearMasters in Economics
Masters in ITMasters in Marketing
PhD in BusinessMBA, Distance or Online
EMBA, 2 YearsPGD - 1 year
Masters in Business or ManagementMasters in Finance
Masters in AccountingMBA PT
MBA FT 1-YearMBA FT 2-Year
Big | Global | Diverse Individuals Sending GMAT Scores, TY 2014
Source. GMAT testing data. Programs shown in red if the smoothed ‘12/’13 figure (to adjust for IR) is less than the ’09 figure.
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Insert Author Name Here Position Title
Company Title
Use this format to call attention to a quote from a prominent member, executive, or thought leader regarding a particular topic.
Insert Author Name Here Position Title
Company Title
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GMAT Pipeline Trends
Younger Candidates
Women
Specialized Masters
Global Trends ‘10 to ‘14
Younger than 25 42% 48%
Women 40% 42%
Scores Sent 28% 34%
Source: Unique GMAT examinees and scores reports sent.
© 2014 Copyright, Graduate Management Admission Council. INTERNAL USE ONLY: Do not distribute without permission from GMAC.
37%
63%
36%
64%
16%
37%
47% 49% 51%
68%
32%
46%
32%
22%
Women Men < 25 25+ 0 1 to 3 4+
Gender Age Years of Work Experience
MBA Degrees Non-MBA Business Masters Degrees
Unique Examinees Sending Scores in TY2014 by Degree Type
Note: Unique GMAT examinees sending scores by program group 3 classification
Distinct Pipelines
TY2014 Scores sent to specialized masters degrees by citizenship
• Europe: 52% • Asia-Pacific: 39% • Middle East & Africa: 19% • North American: 18% • LATAM: 13%
Only 15% of examinees sent scores to both MBA and specialized masters programs.
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More Women in Asia % Women among GMAT Examinees
43% 39% 38% 36% 35%
49%
38% 37% 39% 35%
Asia-Pacific North America Europe Middle East-Africa
LATAM
Region of Citizenship
TY2010 TY2014
Regional Variation – APAC Example
More Women: China (66%), Vietnam (59%) | Fewer Women: India (28%), S. Korea (33%)
Source: GMAT® Unique Examinees by Citizenship
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Program Gender Splits
0%
10%
20%
30%
40%
50%
60%
70%
80%
UK India Brazil Germany Korea US Canada France Taiwan China
% W
om
en
Citizenship
Unique Examinees Sending Score Reports by Program Type and Citizenship
MBA Specialized Masters
Specialized masters programs tend to have a higher share of women submitting GMAT score reports.
Source: TY2014 GMAT Testing Analysis – All Scores
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Foreign Students
3%
59% 67%
82% 85%
97% 99% 99% 100% 100%
US Canada UK India Israel China Korea Japan Brazil Taiwan
Citizenship
Percent of Score Reports Sent Outside Country/Region of Citizenship
Age: 25+ | GMAT Score: 650+
676k Total GMAT scores sent
in TY2013
371k Scores sent outside
country of citizenship
55% of total,
up from 46% in ‘09
Graduates Employers
21,000 alumni from 29 countries and 132 schools Satisfaction • Personally: 94% • Professionally: 90% • Financially: 77%
Alumni Engagement • Recommend program: 95% • Mentor students: 40% • Recruit for a job: 32%
2014 Findings
• Best global MBA hiring picture since before the great recession.
• Employers in all regions reporting hiring growth this year.
• MBA salary premium above MSc, MAcct, MFin & BA degrees.
gmac.com/AlumniPerspectives gmac.com/CorporateRecruiters
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Source: GMAC 2013 Graduate Management Education Graduates Survey. * Gallup survey 2014
Nearly 60% of recent GME graduates have debt…. 2-Year FT MBA programs grads had greatest average debt levels: $50k
EMBA: $41k FT MBA 1-Year: $40k PT MBA: $40k Other GME Masters: $37k
Debt Landscape
Region of Residence
% with Debt
Median Amount (US$)
Global 59% $ 45,000
Central & South Asia 67% $ 30,000
United States 65% $ 50,000
Canada 63% $ 50,350
Latin America 58% $ 27,000
Middle East/Africa 47% $ 39,374
Europe 41% $ 46,410
East Asia & Pacific Islands 38% $ 33,900
Debt Consequences • Double-debt calculations • Less likely to start a business* • Less likely to be “thriving”*
GME Debt by Region of Residence
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000
Debt Fueling Disruption?
• #1 reservation of today’s prospects: money & debt1
• Nearly 60% of global GME graduates have debt2
• 65% of US graduates with it average $50k “double debt”
For-Profits Rebranding Online Redefining Online
University of Phoenix graduates 10,000 GME students/year4
More than 1 million people have engaged with Wharton via its Coursera offerings.3
22% of US prospective GME students consider online MBA programs today.1
Sources: 1. mba.com Prospective Student Survey. 2. GMAC GMEGS survey. 3.WSJ “With Free Web Courses, Wharton Seeks Edge in Traditional Programs” April 2014. 4. NCES IPEDS
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“Doing is more important than knowing”
Professional Development
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Redefining Online Education
Source: GMAC, preliminary data collected from mba.com Prospective Students Survey Jan-Apr 2014 by region of citizenship.
I’d characterize a MOOC as … Asia-
Pacific Europe
United States
A way to explore a personal interest 53% 59% 64%
What do today’s prospective students think?
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Redefining Online Education
Source: GMAC, preliminary data collected from mba.com Prospective Students Survey Jan-Apr 2014 by region of citizenship.
What do today’s prospective students think?
I’d characterize a MOOC as … Asia-
Pacific Europe
United States
A way to explore a personal interest 53% 59% 64%
A method to gauge my interest in a topic area 44% 46% 53%
© 2014 Copyright, Graduate Management Admission Council. INTERNAL USE ONLY: Do not distribute without permission from GMAC.
Redefining Online Education
Source: GMAC, preliminary data collected from mba.com Prospective Students Survey Jan-Apr 2014 by region of citizenship.
What do today’s prospective students think?
I’d characterize a MOOC as … Asia-
Pacific Europe
United States
A way to explore a personal interest 53% 59% 64%
A method to gauge my interest in a topic area 44% 46% 53%
A professional development tool 35% 38% 48%
© 2014 Copyright, Graduate Management Admission Council. INTERNAL USE ONLY: Do not distribute without permission from GMAC.
Redefining Online Education
Source: GMAC, preliminary data collected from mba.com Prospective Students Survey Jan-Apr 2014 by region of citizenship.
What do today’s prospective students think?
I’d characterize a MOOC as … Asia-
Pacific Europe
United States
A way to explore a personal interest 53% 59% 64%
A method to gauge my interest in a topic area 44% 46% 53%
A professional development tool 35% 38% 48%
Preparation for a graduate management program 34% 25% 29%
© 2014 Copyright, Graduate Management Admission Council. INTERNAL USE ONLY: Do not distribute without permission from GMAC.
Redefining Online Education
Source: GMAC, preliminary data collected from mba.com Prospective Students Survey Jan-Apr 2014 by region of citizenship.
What do today’s prospective students think?
I’d characterize a MOOC as … Asia-
Pacific Europe
United States
A way to explore a personal interest 53% 59% 64%
A method to gauge my interest in a topic area 44% 46% 53%
A professional development tool 35% 38% 48%
Preparation for a graduate management program 34% 25% 29%
Alternative to a graduate management education 22% 15% 12%
© 2014 Copyright, Graduate Management Admission Council. INTERNAL USE ONLY: Do not distribute without permission from GMAC.
The Millennial Mindset
mba.com Prospective Student Survey, 2014 % of prospective students 25 & older considering online MBA programs
Region of Residence • United States: 26% • Canada: 21% • Eastern Europe: 15% • Africa: 13% • Western Europe: 9% • Middle East: 8% • Latin America: 6% • East & Southeast Asia: 5% • Central & South Asia: 5%
Source: GMAC mba.com Prospective Students Survey, 2014 Report (data by residence for those aged 25 and older)
Online MBA Demand
13 12 17 16 18
86 90 103 113
124
TY2009 TY2010 TY2011 TY2012 TY2013
Number of Online MBA Programs Receiving GMAT Score Reports
Non-US US
“Computers are not technology”
“Reality is no longer real”
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Global GME Hiring Continues to Improve
0%
25%
50%
75%
100%
MBA Master in Management Master of Accounting Master of Finance
Percentage of Employers Worldwide That Hired or Plan to Hire New Employees
2009 2010 2011 2012 2013 (Actual) 2014 (Projected)
And more… • Fewer companies report
economic challenges • Those with growth goals
are opting for MBAs
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BIG | GLOBAL | DIVERSE | RECRUITERS – LINKAGE OF GOALS AND HIRING INTENT
70%
44% 45% 44%
79%
52%
47%
51%
84%
51%
43% 39%
0%
25%
50%
75%
100%
MBA Master inmanagement
Master ofaccounting
Master offinance
Per
cen
tage
of
Co
mp
anie
s P
lan
nin
g to
Hir
e in
20
14
2014 Hiring Profile, by Corporate Goals and Degree Type
Overcome Challenges Improve Growth
-0.15
-0.1
-0.05
0
0.05
0.1
0.15
Overcome challenges Expand /Grow
Correlation of hiring intent and primary business goal
MBA MiM Ma/c Mfin
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40%
57%
64% 61% 60%
2010 2011 2012 2013 2014
% of job seeking MBA students with a job offer by march of grad year
FT 2 yr MBA
70%
64%
55%
67% 70%
73%
80%
2008 2009 2010 2011 2012 2013 2014
Change in salaries amongst grads with job offers (pre to post degree)
% salary increase
Stability in Full-Time 2-Year MBA job offers, overall pay growth
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BIG | GLOBAL | DIVERSE | APPLICATION TRENDS
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Thank You