global and canadian trends in graduate management education deans... · cfbsd annual deans...

© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved. CFBSD Annual Deans Conference | 2015

Global and Canadian Trends in Graduate Management Education

Alex Chisholm

Senior Director, Research

Graduate Management Admission Council®


Prospects

GMASS and GMAT

Examinees

Applications

Grads/Alumni

Recruiters

12k prospective

students

3k grads111 universities

20 countries

20k alumni

748 employers47 countries

650 programs306 universities

B-School Insight from GMAC

190kGMAT examinees

400k candidates


0 vs. 2

31.4 vs. 36.5

Canada Specifics


Canadian Residents

• 8k GMAT exams, 6k unique examinees

• 17k score reports sent

• 802 mba.com prospective student survey respondents

Student Interest in Canada

• 25k GMAT score reports sent to Canadian business schools

• 8.5k domestic prospects

• 16.5k international prospects

Canadian Schools

• 20+ schools participate in our survey research, including Application Trends, Graduates/Alumni, and/or Corporate Recruiters

Canada Specifics


Thank You gmac.com/SurveySignUp


I. B-School Demand and Mobility Trends

Application Trends and TY2015 GMAT data

II. Student Segments

Specialized Master’s Candidates | Women | Millennials

III. Topical Trends

Debt | Digital Disruption | Differentiation

Today’s Topics


The MBA field today has a decidedly non-academic air of marketing and product experimentation, with universities:

• battling to woo students with shorter degrees

• novel programs

• alluring opportunities for foreign travel

• and new high-tech buildings.

The Global GME Market Today

Big

Global

Diverse

Canada’s MBA problem

April 2015

“

”


B-SCHOOL DEMAND & MOBILITY TRENDS


0%

25%

50%

75%

100%

2009 2010 2011 2012 2013 2014 2015

Full-Time MBAs

FT MBA 2-Year FT MBA 1-Year

0%

25%

50%

75%

100%

2009 2010 2011 2012 2013 2014 2015

Professional MBAs

PT MBA EMBA Online MBA (US Only)

0%

25%

50%

75%

100%

2009 2010 2011 2012 2013 2014 2015

Specialized Masters

MiM MAcct MFin

Source: GMAC Application Trends Survey Reports. 2009 through 2015.

Application Trends% of Global Programs Reporting Growth

50%/50% split in Canada forFT MBA programsin ‘15


0

1,000

2,000

3,000

4,000

5,000

6,000

Unique GMAT Examinees in Canada

Canadian Citizens International Candidates

GMAT Trends in Canada

ProvinceTY

2015% of

countryCAGR

since ’11

Ontario 3,461 57% -3%

Quebec 842 14% -2%

British Columbia

675 11% -8%

Alberta 639 11% -2%

Nova Scotia 148 2% -3%

Unique Examinees Residing in Canada

• TY2007 | 5,971• TY2011 | 7,052• TY2015 | 6,085


Nearly 190k individuals take the GMAT186,868 Unique Examinees in TY2015 | 247,432 Total Exams

Canada6,085 Examinees-4% Compound Annual

Growth Rate Since ‘11Europe

19,834 (-1%)

Mexico &Latin America4,660 (+3%)

Middle East& Africa

8,003 (-5%)

Asia-Pacific60,849 (+4%)

Source: GMAT® Examinees by Region of Residence

Led by India (MBA/PGD

demand) &China (specialized

masters)

Now stabilizing

Specialized master’s , MBA

Many smaller, emerging

markets growing

United States 87,437 (-8%)


26 Countries at 9-Year GMAT Testing Highs in TY 2015

Emerging Student Pipelines

Source: Unique GMAT examinees by country of residence where examinees is 50 or greater in TY2015.

Ignores TY2012 due to IR spike.


5. India

• 8k individuals18k scores

4. Canada


3. France


2. United Kingdom


1. United States

• 107k individuals 438k scores

Canada as leading talent destination

Top Talent Sources

Canada: 32%

India: 25%

China: 19%

Nigeria: 3%

Pakistan: 2%

United States: 2%

Iran: 1%

Bangladesh: 1%

Brazil: 1%

Mexico: 1%

Top Talent Sources

United States: 55%

China: 14%

India: 13%

Canada: 1%

Taiwan: 1%

Korea, South: 1%

Saudi Arabia: 1%

Brazil: 1%

Mexico: 1%

Vietnam: 1%

“I could easily enroll 300

students if I was willing to have half of my class

be from China or India.” - Dean of Canadian School

Canada’s MBA Problem

Top 5 GMAT Score-Sending Destinations, TY2015


Study Destination Criteria

Europe Asia Canada United States

1 Reputation of the educational system: 72%

Reputation of the educational system: 63%



Study Destination Criteria by Preferred Destination

2Improved chances of having an international career: 56%

Better preparation for career: 44%

Improved chances of having an international career: 43%


3To develop an international network of peers: 47%

Affordability of education/tuition fees: 42%

Attractiveness of location: 43%

Attractiveness of location: 44%

4Better preparation for career: 47%




5 Attractiveness of location: 46%

Availability of financial aid: 36%

Affordability of education/tuition fees: 37%

To develop an international network of peers: 31%


Why Canada?

Canadian Candidates

1. Reputation of the educational system: 62%

2. Attractiveness of location: 48%

3. To be near relatives/family living in the country: 44%

4. Affordability of education/tuition fees: 40%

5. Better preparation for career: 32%

6. Improved access to jobs in my home country: 29%

International Candidates

1. Reputation of the educational system: 71%

2. Improved chances of having an international career: 62%

3. Better preparation for career: 50%

4. To develop an international network of peers: 47%

5. Attractiveness of location: 40%

6. Ease of obtaining a work permits: 40%

Study Destination Criteria for Those Preferring Canada

Only 18% of international candidates who prefer US as study destination say ease of obtaining a work permits is a key criteria


0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Graduate business, management, and public administration enrollments

in Canada, 2nd Cycle

Canadian Citizens International Students

GME Enrollments up in Canada

Total Enrollments: 35k annual GME enrollments, up from 22k in 2001

Market Share: 23% of masters enrollments are GME students – flat from ‘00

Women: 51% of GME enrollments are women, up from 45% in ‘00

Part-time: Roughly half of GME enrollments are part-time (stable)

Internationals: 16% of GME enrollments are international students, ranges from 12 to 17% since ’00


-247,585

-132,129

-300,000

-250,000

-200,000

-150,000

-100,000

-50,000

0

50,000

100,000

150,000

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Cumulative Change in Canada’s Student Age Population from 2015

20-24 year olds 25-29 year olds

The Domestic Pipeline Will Decrease

The student age population in Canada is expected to decline from 4.7m to 4.3m from 2015 to 2025.

Its two leading international pipelines are heading in opposite directions:• India: 213m to 231m

(+17m, +8%)• China: 228m to 162m

(-67m, -29%)

© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved.

CANDIDATE SEGMENTS

Specialized Master’s Candidates | Women | Millennials


Specialized Master’s Spotlight on Canada

17% Percent of scores

sent by Canadian residents, up from 10% in ‘07

21% Percent of scores

received by Canadian schools, up from 10% in ‘07

Specialized Master’s CandidatesDemand for non-MBA masters degrees has grown

% of GMAT scores sent to specialized master’s degrees

by region of residence

56%

40%

23%17%

Europe Asia-Pacific UnitedStates

Canada

TY2007 TY2015


Specialized Master’s CandidatesThe Distinct Specialized Masters Pipeline

A: Not today, what about tomorrow?

Q: Are specialized master’s programs cannibalizing the MBA pipeline?

Specialized Master’s

Candidates

Characteristics of Global GMAT

Score-SendersMBA

Candidates

60% % Younger than 24 25%

47% % No Work Experience 16%

49% % Women 38%

67% % Business Undergrad 44%

GMAT Score-Senders to Canada

61% % Younger than 24 20%

49% % No Work Experience 10%

56% % Women 35%

62% % Business Undergrad 37%


… AND MBA Tomorrow

… OR MBA Tomorrow

… AND Something Else Tomorrow

Specialized Master’s CandidatesStepping Stones or Substitutes?

Specialized Masters Today…


15%

33% 32%

41% 40%36%

44%

27%32%

Accounting Masters Finance Masters Management Masters

Graduate Degree Earned

Likely Uncertain Unlikely

Specialized Master’s CandidatesWhat Today’s Graduates Say

How likely are you to consider an MBA now that you’ve earned a specialized masters?

Source. GMAC Graduate Management Education Graduates Survey (GMEGS) 2014 and 2015 results. 7 point scale with likely/unlikely computed by top2box.


39.5%All Examinees

43.0%

37.8%MBA

Score-Senders

37.6%

46.6%

Specialized Masters Score-Senders

49.2%

TY2007 TY2008 TY2009 TY2010 TY2011 TY2012 TY2013 TY2014 TY2015

Women as % of GMAT Examinees

WomenLarger presence in specialized masters group

Source: GMAT testing data. TY2007-TY2015

Region of Residence

MBASpecialized

MastersE/SE Asia 53% 68%

Africa 41% 46%

Middle East 39% 39%

Eastern Europe 38% 50%

United States 38% 45%

Canada 38% 47%

Western Europe 33% 39%

Australia-Pacific 31% 35%

LATAM 28% 37%

C/A Asia 27% 33%

% Women by

Region of Residence


30%28%

30%32%

19%21%

24%26%

12%

16%18%

22%

2000 2005 2010 2015

Financial Times Ranked FT MBA Programs: % Women

WomenOn-campus presence is slowly growing

Students

Faculty

Board

Source: Financial Times FT MBA Ranking Data. 2000-2015.

Key Question: How do we leverage high female participation at the undergraduate business level and ensure that GME is equally as welcoming?

6 Canadian Schools in 2015

Students: 33% (29% to 42%)Board: 28% (13% to 50%)Faculty: 27% (23% to 33%)


MillennialsPopular opinion

Volunteer work

Community

Politics & public life

Non-profit employment


Region of Residence CommunityVolunteer

WorkPolitics &Public Life

Africa 6th 12th 14th

Canada 11th 12th 13th

Central & South Asia 11th 10th 13th

East & Southeast Asia 9th 12th 13th

Eastern Europe 10th 13th 12th

LATAM 11th 12th 13th

Middle East 10th 12th 13th

United States 9th 12th 13th

Western Europe 11th 13th 12th

MillennialsHow about our millennials?

Rank out of 14 psychographic items: Millennials

Source: mba.com Prospective Students Survey 2014-2015

Financial Security

2nd

1st

2nd

4th

2nd

2nd

2nd

1st

3rd

Career & Work

1st

2nd

1st

1st

1st

1st

1st

2nd

1st


0%

20%

40%

60%

80%

100%

Psychographic Items Asked - Percent Selecting Important (%)

Millennials Gen X and Boomer

MillennialsGenerational divides?

Less Important Very Important

+8%

+3%

+10%

-5%


-5%

+13%

+7%


MillennialsIntended post-GME industry

Millennials

• Consulting services: 19%

• Investment banking: 19%

• Management consulting: 19%

• Banking: 18%

• Finance & insurance: 14%

Gen X and Boomers

• Consulting services: 14%

• Management consulting: 13%

• IT or services: 10%

• Education/Ed services: 10%

• Banking: 9%

Top Five Intended Industries

#16 Government 7%

#20 Non-Profit 6%

#7 Government 8%

#9 Non-Profit 7%

Key Questions

• Where do business school prospects fit in the Millennial hype?

• Are we missing out on a more “typical” segment of the younger

population or does that really exist?



TrudyWorld Vision | MBA ‘13

worldvision.com/donate

“engage with senior management through deeper understand of strategy and financial management”

“understand of how social-political-economic realities/challenges across various regions impact my work in the humanitarian industry”

My MBA helped me…


TOPICAL TRENDS

Debt | Digital Disruption | Differentiation


MBA Sticker Shock

Nearly 60% of recent GME graduates have debt….

2-Year FT MBA programs grads had greatest average debt levels: US$50k

• EMBA: $41k• FT MBA 1-Year: $40k• Other GME Masters: $37k

Region of Residence

% with Debt

Median Amount (US$)

Global 59% $45k

Central & South Asia 67% $30k

United States 65% $50k

Europe 41% $46k

East Asia & Pacific 38% $34k

“Student debt increasing by $1 million per day [in Canada].” Canadian Federation of Students

“Canadian students are seeing theirfinancial obligations grow fasterthan income. ”Huffington Post 2014

Debt Consequences• Double-debt calculations• Less likely to start a business*• Less likely to be “thriving”*

Source: GMAC 2013 Graduate Management Education Graduates

Survey. * Gallup survey 2014


Tuition Capitulation

Tuition Cutting

Fully Fund Everyone

Partner ata Discount


Old: Knowledge Creation & Knowledge Hoarding


New: Knowledge Dispersion


I’d characterize a MOOC as …Asia-

Pacific

Central

AsiaCanada Europe

United

States

A way to explore a personal interest 56% 58% 66% 60% 63%

Source: mba.com Prospective Student Survey. Preliminary data from respondents in 2014.

Roughly 50% of global prospective students know what MOOCs are.

Digital DisruptionWhat Prospects Think of MOOCs

A method to gauge my interest in a topic area 47% 48% 45% 48% 48%

A professional development tool 30% 46% 49% 37% 47%

Preparation for a GME program 38% 31% 23% 25% 27%

Alternative to GME 24% 9% 11% 14% 12%


What role will technology play?

Desired online component (%) by preferred degree type

• Online MBA: 89%

• EMBA: 28%

• Finance: 24%

• Acct: 23%

• MiM: 21%

• FT 1-Year MBA: 20%

• FT 2-Year MBA: 16%

Source: 2015 mba.com Prospective Student Survey

% considering online MBA programs by region of residence

Differentiate on Delivery United States 21%

Canada 16%

LATAM 8%

Western Europe 6%

Asia 4%


Differentiate on Content

North America is a saturated market for MBA programs, and most now have to start targeting niche markets with specialized courses.

Dean of Canadian B-School Canada’s MBA problemApril 2015

“

”

Data Analytics

8% of global GME prospects consider

Masters in Data Analytics programs, 6% in Canada

Source: GMAC 2015 mba.com Prospective Student Survey and 2015 Corporate Recruiters Survey.


Data AnalyticsOpening the Black Box

“Big data is like teenage sex: everyone talks about it, nobody really

knows how to do it, everyone thinks everyone else is doing it, so

everyone claims they are doing it.”

- Professor Dan Ariely, Duke University

Data Profit/Success

• Big data• Predictive analytics• Segmentation• Etc…

Key Question: How can business schools educate talent to help organizations actually implement “big data” solutions?


Segmenting by career goals

Career Enhancers Career Switchers Aspiring Entrepreneurs

34% 38% 28%Percentage of global respondents

EntrepreneurshipNearly 3 in 10 prospects are considering

Source: GMAC 2015 mba.com Prospective Students Survey


44% 43% 42%

28% 27%23%

21%

0%

10%

20%

30%

40%

50%

LatinAmerica

CentralAsia

MiddleEast/Africa

Europe Asia/PI Canada UnitedStates

Interest in Post-Degree Entrepreneurship

by Region of Residence

2010 2011 2012 2013 2014

EntrepreneurshipMore prospects worldwide are interested



5% of 2015 graduates pursuing entrepreneurial careers

Why?

EntrepreneurshipMany are interested, fewer act

Importance of GME in helping… 2015

Lead my company 82%

Grow my business 81%

Develop an idea 77%

Develop financial projections 75%

Conduct market research 74%

Write business plan 70%

Contact with potential customers 68%

Write marketing plan 68%

Secure financial resources 67%

Create human resource plan 61%

Key Question: How can we position business school as a developer of entrepreneurs and not a delay of entrepreneurship?

1. Passion for what they do: 90%

2. Autonomy: 86%

3. Revenue Potential: 81%

4. Flexibility: 79%

5. Control: 78%

Source: GMAC Graduate Management Education Graduates Survey 2015


EntrepreneurshipWhere does business school fit in?

"If you're an entrepreneur and have passion, the hell with more education!”- Jack Welch

Most MBAs do not have any startup experience,

& founders won’t be impressed if you won your

business plan competition during school.


How Does GME Stay Relevant?

“With more than 40 universities

offering MBA degrees in Canada –

plus hundreds more in the United

States – there are growing

questions about whether MBA

schools can guarantee high job

placement rates to lure students

into paying as much as $95,000 for

an education, and whether they

can maintain their lustre in the

eyes of the business community.”

Canada’s MBA Problem

© 2015 Graduate Management Admission Council® (GMAC®)

The Value of GME Remains High

97% 96% 95% 95% 95% 94% 92% 84%

FT MBA 2-Year

MiM EMBA OnlineMBA

MAcct FT MBA 1-Year

PT MBA MFin

% of GME alumni reporting value as good, excellent, or outstanding

Source: GMAC 2015 Alumni Perspectives Survey. GMAC Graduate Management Education Graduates Survey 2015

93% 92% 91% 90% 90% 90% 86% 84% 74%

Faculty Curriculum Programreputation

Admissions Programstructure

Fellowstudents

Programmanagement

Studentservices

Careerservices

% of 2015 GME graduates reporting value as

good, excellent, or outstanding

© 2015 Graduate Management Admission Council® (GMAC®)

The Post-GME Value Chain

Individuals

• Personal

• Professional

• Financial

Companies

• Competitiveness

• Profitability

• Staying power

Society

• Economic growth

• Development

• Improved standard of living


THANK YOUAlex Chisholm

[email protected]

gmac.com/research

global and canadian trends in graduate management education deans... · cfbsd annual deans...

Documents