22— EXECUTIVE SUMMARY —
Full-time, part-time, and executive MBA programs offer a wide range of courses.
—The advantages of each type of program are marked.
The European MBA model offers a contrast to the American model.
Be sure to choose the type of program best suited to your personal needs.
There are now many different types of MBA programs, as well as different means of delivering a given type of program. Thus, the business school applicant can choose from full-time, part-time, modular, or distance learning (i.e., by television, video, Internet, and mail) programs. Rather than discuss all of the many different possibilities, however, this section focuses on the major program types: traditional full-time programs (both American and European versions), part-time programs, and executive programs.
The American MBA has been around for more than a century now. The initial assumption was that it was to provide training for someone without prior business study, so it was made a two-year degree, with the first year providing an introduction to business fundamentals. Although there have been innumerable changes in the typical program, it retains certain core characteristics. It is still, almost without exception, a two-year program. It has a set of core courses that are required for all or most students. Most students are still relatively young, with the typical age upon entrance currently being 26 or 27. Many schools once accepted a majority of their students straight from undergraduate studies, but now schools require two or more years of experience from most of their students. In the last few years, however, the top schools have once again opened their doors to a modest number of applicants lacking substantial experience in the belief that true “stars” should be found and nurtured very early in their careers.
American schools have always been the intellectual leaders in business education, and they remain, collectively, a bastion of serious research. (The leading European schools have closed this gap, but relatively few of them are truly serious research institutions.) American professors at the leading schools therefore tend to be at the forefront of their fields. This is especially true now that American schools have emphasized developing closer links with industry, so most leading professors spend part of their time consulting to industry in addition to doing research. In fact, the two activities are closely related.
American schools have dramatically changed their programs to integrate the core subjects, incorporate softer skills, and internationalize their focus. These changes are continuing. Different schools have approached the need for change in different ways, as the contrast between the programs at Harvard Business School and the University of Chicago Booth Graduate School of Business illustrates.
Harvard Business School provides an example of a traditional program structure. The academic year is split into two terms. The first term focuses on a firm’s internal operations; the second, on the firm’s relationship to its environment.
| Fall Term | Spring Term |
| Finance I | Finance II |
| Financial Reporting and Control | The Entrepreneurial Manager |
| Leadership and Organizational Behavior | Negotiation |
| Marketing | Strategy |
| Technology and Operations Management | Leadership and Corporate Accountability |
| Business, Government, and the International Economy |
In the second year, students take up to ten semester-length elective courses. A similar structure is evident in other programs—with most required courses completed in the first year, and the second year largely devoted to electives—although many schools have a three- or four-term, rather than two-term, structure.
At the other end of the spectrum, the University of Chicago Graduate School of Business (“Booth”) has created a curriculum that offers dramatic freedom of choice to students. Only one course—an introductory leadership–soft skills course—must be taken by everyone. Students must take courses in a variety of fields to meet a distribution requirement, but the specific courses are to be chosen by each student. This structure is highly flexible; only one course out of twenty-one is mandated, and the rest are to be chosen to fit a student’s own needs.
Most American schools are closer to Harvard than Booth in their curricula. Although a good deal of freedom of choice of electives is offered, the set of required courses remains at about 40 to 50 percent of the total program. Whereas some schools allow students to waive some required courses, most case-oriented schools (like Harvard and Darden) do not. They feel it is essential to have highly knowledgeable students in these courses because these students will effectively end up teaching the novices, through their comments in class and their work in study groups.
VARIATIONS ON THE AMERICAN MODEL
In recent years numerous variations on the standard American model have been instituted. A substantial number of schools have added one-year MBA programs, largely for applicants with undergraduate degrees in business and engineering. (See North American One-Year Programs beginning on page 19 for a listing and discussion of these programs.) Just as important, many schools have altered the first year of their two-year programs.
One of the impulses has been to break down the rigid divisions between subjects, which heretofore meant that in a marketing class no consideration would be given to the manufacturability (or cost) of a proposed product. Yale notably took the lead in this effort, replacing the typical academic subjects of marketing, finance, and the like with a radically different approach. First-term courses are structured around the roles a manager might play in an organization. Their titles, albeit lacking a certain elegance, suggest how different Yale’s approach is: the Investor, the Customer, the Competitor, State and Society, the Innovator, the Employee, the Operations Engine, and Sourcing and Managing Funds. Each course is taught by a team of professors from a variety of disciplines, allowing for a truly interdisciplinary focus on key issues.
Another impulse has been to help would-be career changers, who have a much better chance of landing a coveted summer internship in their new field if they have taken multiple courses relevant to it during their first year. Thus, Columbia’s first-year curriculum is not a one-size-fits-all lockstep program. Instead, in the second half of the first year, students select from a core course menu, choosing one course from each of three fields (currently organizations, performance, and markets). Furthermore, they have two free electives. Cornell’s program goes even further. Students complete much of the core curriculum during their first term, leaving their second free for an “immersion learning experience…aimed at getting them up to speed in their area of interest.” Students can take one of seven offerings (ranging from Capital Markets and Asset Management to Strategic Marketing) or design their own.
At one time there were two relatively distinct models of MBA education. The American model differed from the European model on several grounds:
| AMERICAN | EUROPEAN | |
| Length | Two Years | One Year |
| Primary Driver | Professorial Research | Industry Connections |
| Course Focus | American | Global or European |
| Skills Emphasized | Quantitative | Soft Skills |
| Student Body | Largely American | Mixed (but largely European) |
| Selection Criteria Emphasized | Test Scores, Grades | Work Experience and Success |
| Age of Students | Mid-twenties | Late-twenties or Older |
There were other differences, too, although this chart covers the major issues. Moreover, not all programs fit the predominant pattern in either case. In the United States, Thunderbird was (and remains) very similar to the European programs, with its global focus, emphasis on languages, and the like. In Europe, London Business School, Manchester Business School, and IESE (Barcelona) were (and remain) a mixture of the American and European models—a “mid-Atlantic” model, perhaps.
The differences between the two models have blurred in recent years as the American programs in particular have made substantial changes. Most, if not all, of the top American programs have greatly increased the role of such “soft skills” as leadership, negotiation, and teamwork. Related to this, they have tried to improve their connections to industry, to make their courses more relevant and less driven by professorial interest (some would say whim), and also to benefit from being able to place students as interns undertaking projects for companies. They have also worked hard to examine the issues in managing in a global environment, although they generally lag behind the top European programs in this regard. The American programs have sought people with more work experience, rather than those who have only academic credentials. The European schools have also changed, with the leading programs in particular incorporating a more quantitative focus to their programs.
The old stereotypes—American schools are intellectually rigorous but their graduates lack managerial and interpersonal skills, whereas European schools produce fine managers who understand the languages and cultural context of different countries but lack substantive skills—clearly no longer apply. But before dismissing the issue, it should be said that some of the old differences between American and European programs remain. American schools still spend a majority of course time on American cases and issues, whereas European schools do not focus so heavily on any one country. American student bodies are still largely American (only 20 to 45 percent come from other countries, and many have close ties to the United States already), whereas few leading European schools have more than a modest minority from their home countries.
Some European one-year programs are divided into four terms, while others are divided into five or six terms. Some have a compulsory project or thesis in the last term or two, whereas others offer taught courses for the entire year.
Italy’s Bocconi is an example of both approaches, giving students the option of whether to do a project or not. After September precourses for those who need to upgrade their knowledge of various quantitative fields, the program is divided into four phases:
Phase I: Courses (October–March)
Financial Reporting & Analysis
Management Accounting & Control
Organizational Behaviour & Negotiation
Human Resources Management & Organization Design
Marketing
Management of Operations, Supply Chain & Information Systems
Quantitative Methods
Financial Markets & Institutions
Corporate Finance
The Firm & Its Environment
Strategy
Phase II: Soft Skills Development (April–May)
Applied Decision Making
Entrepreneurship & Business Planning
Leadership
Corporate Governance & Business Law
Corporate Citizenship
Phase III: Action Learning (June–August)
Choice of: Internship (in a firm or other organization), Group Consulting Project, Entrepreneurial Project, or Research Project
Phase IV: Concentration (September–October)
Students select group of 6–8 electives within one of five fields
Alternatively, students can opt for an international exchange at one of approximately twenty partner schools (September–December)
The ratio of time spent on required to elective courses is approximately four-to-one, which is slightly higher than average for European one-year programs, although several leading schools offer almost no choice of electives. The shortness of the program and the consequent high percentage of required versus elective courses differ from the longer American programs.
Those looking for more flexibility than the traditional one-year program offers need not look far. Various schools have reduced their core curricula to allow for more choice of elective courses. At INSEAD, for instance, core courses take up only about half of the required course load. In addition, at the longer programs the second year is generally given over to elective courses. (The following schools offer programs lasting approximately two academic years: ESADE (Barcelona); HEC (Paris); IESE (Barcelona); London Business School; and Manchester.)
The advantages and disadvantages of attending a European school as described below are based on one-year programs. Those interested in the fifteen-month to two-year programs at such schools as London and IESE are advised to use this list with caution, and to consider the above pros and cons regarding American two-year programs as well.
The European model is attractive to those who intend to work in Europe or for European companies. As with the leading U.S. schools, moreover, leading European schools offer worldwide employment opportunities and first-class learning environments. Top American firms that operate worldwide, such as the management consulting and financial service firms, are among the top recruiters of students from these schools.
It is indeed unfortunate that so few Americans (perhaps 6,000 per year) attend these programs, although an American who wishes to work for a Kansas City firm doing business only in the Kansas City region may have little need to cross the Atlantic or Pacific for an MBA. The fact remains, however, that fewer and fewer applicants can correctly assume that their careers will lack international dimensions, whether that means working abroad, working for a foreign company in the United States, managing foreign employees, or competing against foreign companies.
An increasing number of American and Canadian schools now offer one-year MBA programs, thereby rejecting the two-year orthodoxy that has long reigned in North America. Some are open to anyone, others only to those with special qualifications. Krannert (Purdue) and Mendoza (Notre Dame), for example, require only that candidates have a bachelor’s degree. On the other hand, Kellogg offers its four-quarter program to those with an undergraduate degree in business or comparable educational experience. Johnson (Cornell), similarly, offers its one-year program to graduate-degreed scientists and engineers switching into management.
The programs that are open to anyone generally differ substantially from those with special educational and experience requirements. The former tend to have relatively lengthy core course requirements; the latter do not. In fact, in most cases where entry is limited to those with special (and substantial) qualifications, the entering group is expected to be able to study the introductory material at an accelerated pace. At Kellogg, for example, the four-quarter-program students condense the whole of the regular program’s first year into a summer of study, then join the six-quarter-program students for the “second year” of elective courses. This structure is radically different from that common to the European schools. Rather than have two-thirds or more of the year devoted to required courses, as in Europe, these North American programs devote the bulk of the year to elective courses.
The chart below includes basic information about some of the leading one-year programs in the United States and Canada. Note that most schools offering one-year MBAs still offer two-year programs as well. The difference in tuition for the two versions highlights the savings potentially available for those choosing a one-year program.
Part-time MBAs have become more popular both because they offer the opportunity to remain at one’s job while also attending school and because more top-quality schools now offer part-time MBA programs. The typical program involves taking one or two classes per term, thereby prolonging the time it takes to get a degree. Those pursuing an American MBA, who would take two years in a full-time program, will take three years or more in a part-time program.
The people who find these programs attractive are likely to be older, with more experience, and many have financial obligations that prevent them from attending a full-time program. Others are unable or unwilling to leave their current jobs and choose a part-time program as the only realistic means of furthering their business education.
The structure of a part-time MBA does not differ significantly from that of a full-time MBA. The same core courses are generally required, although they may be taken in a slightly different sequence due to the scheduling difficulties that result from students proceeding through the program at varying speeds. The number of courses that must be completed in order to graduate will almost invariably be the same.
For a discussion of the advantages and disadvantages of part-time MBAs, see the end of the executive MBAs section, which follows.
Executive MBAs (EMBAs) are a relatively recent addition to the offerings of most graduate business schools. For years, the only such program was offered by the University of Chicago. Now there are dozens of executive MBA programs offered by many of the top business schools in the world.
Executive MBAs are to be distinguished both from regular MBAs and from other executive programs. Full-time MBA programs, of course, meet daily and last up to two years. Part-time programs tend to have classes in the evening and last for substantially longer than full-time MBA programs, largely because students are meant to take only one or two courses per term (whereas full-time students take many more per term). EMBA programs offer the best of both the full-time and part-time programs: they generally last about as long as a full-time program but—by scheduling classes in such a way that students with understanding employers can continue to work while still attending class—do not force students to give up their jobs. (Other executive education programs, in contrast, may meet for one to ten or twelve weeks but do not confer an MBA upon completion.) On the other hand, not all EMBA programs offer the rigor or dedicated learning environment of their full-time analogs. Furthermore, continuing to work while studying at the intense pace of an EMBA program places very substantial demands on students.
The number of EMBA programs has grown dramatically in recent years. There are several factors underpinning this growth:
Fortunately, there is no agreement as to what constitutes the ideal structure for an EMBA program. Although many programs last approximately two years, many are much shorter (little more than a year) or longer (up to four years). Some are lockstep (the whole cohort takes the same classes together), whereas others offer multiple options as to starting dates, speed at which to complete the program, and course electives.
The scheduling of courses likewise varies enormously. For instance, UCLA’s program meets every second weekend (Friday and Saturday) for twenty-four months. Columbia, responding to firms’ desire not to have to release employees from Friday work, now offers a Saturday-only program. The TRIUM EMBA (the joint offering of Stern/NYU, the London School of Economics, and HEC/Paris) is structured in modules: a twelve-day module in London; a twelve-day module in New York; an eight-day module in Asia; a twelve-day module in Paris; an eight-day module in an emerging market; and a twelve-day module in New York, spread over sixteen months. Different formats for executive courses continue to evolve.
The range of EMBA programs—and locations—is now stunning. Wharton offers a program in Philadelphia and another in San Francisco. Booth (Chicago) continues to offer programs in Chicago, London, and Singapore. Kellogg offers programs in Chicago and Miami and, through partner schools, in Canada, Germany, Hong Kong, and Israel. Johnson’s (Cornell) program involves less of a geographic stretch than these others: It is offered both in New York City and in its Ithaca home.
Whereas American programs are generally about two years long, European EMBA programs tend to be shorter. INSEAD’s program, for instance, lasts fifteen months; Instituto de Empresa, in Madrid, has a thirteen-month program. IMD’s program can be completed in as few as fifteen months or stretched out over as many as forty-eight. Asian programs, similarly, are generally shorter than two years, with eighteen months as a de facto standard.
Columbia and London Business School, which continue to offer their own executive MBAs, also offer a joint degree program under the EMBA-Global label. So, too, do Stern (NYU), the London School of Economics, and HEC (Paris), under the TRIUM name. Five schools—Rotterdam, Kenan-Flagler (North Carolina), EGADE-ITESM (Mexico), FGV-EAESP (Brazil), and the Chinese University of Hong Kong—across four continents, have joined to offer “OneMBA,” while the various constituent schools still offer their own EMBA programs.
London Business School and Stanford still offer the venerable Sloan master’s programs, which are unlike a normal executive program insofar as they require full-time attendance for ten months but are still aimed at seasoned executives.
EMBA programs continue to multiply and evolve. The selection below illustrates that the variations among programs are far greater than those seen with part-time or full-time MBA programs. Whether it’s price, starting date, location, duration, number or frequency of residential sessions, age of participants, or admission requirements, this is a dog’s breakfast. And as the EMBA market evolves, expect more rather than less variety.
The chart on the next page shows a bit of the range of courses now on offer.
Corporate sponsorship can mean, at a minimum, giving you the time off to attend an EMBA program or, at a maximum, paying your tuition, fees, and travel to attend a program. Virtually no EMBA program requires that you be financially sponsored by your company, but all require that your employer guarantee you suitable time to attend and complete the program. Of course, even though financial sponsorship is not a requirement for admission, having your employer pay all or part of your expenses would be nice. Your organization is likely to be concerned, however, about your time away from work, the level of financial investment required, and the possibility that you may jump ship once you have your degree.
The first step in lining up sponsorship is to determine whether your organization has an explicit policy regarding EMBA sponsorship. Even if it does not, perhaps it has paid for someone to attend an EMBA program or something similar. Next, think about how your company can benefit in general terms by sponsoring appropriate highfliers. Potential benefits include:
Then consider how these potential benefits could apply in your case. In building your case, be realistic not only about the benefits but about the hurdles as well. Being flexible about your choice of program—its location, its duration, the time courses meet, and so on—can certainly help. So, too, can a willingness to tie yourself to your company for a set time after the EMBA, to alleviate concern that you will leave immediately upon graduation. One way to do this is by taking out a company loan that is forgivable over time.
Most EMBA programs have substantial experience helping applicants negotiate with their employers, so seek their counsel when it comes time to pitch to your company.
The price of an executive MBA is generally substantially greater than that of a part-time or full-time MBA. It bears asking whether the degree is worth the (extra) money. A facile answer would be that an EMBA’s higher cost to the business school merits a higher price. (A typical EMBA program gets the school’s best professors, best facilities, best food, great travel, and so on.) More important, however, is that both the learning and earning components of a top EMBA program exceed those available in a full-time program.
A good EMBA program involves small classes and professors well versed in theory and experienced in the real world (and the classroom). The learning opportunities are magnified by having highly qualified classmates. In the very best programs, you might find yourself seated between the head of production for one major company and the head of marketing for another. The result is both that the discussion is pitched at a much higher level than in a part-time or full-time program and the networking opportunities are of a different order altogether. The combination of these factors makes the best EMBA programs well worth the small fortune they command.
FULL-TIME AND EXECUTIVE MBA PROGRAMS AT A GLANCE
| Full-Time | Executive | |
| Average Age (at start of program) | 24–30 | 33–40 |
| Total Fees | $80–160,000 | $70–160,000 |
| Acceptance Rates | 10–35% | 20–50% |
| Electives as Percentage of Total Courses | 45–95% | 0–50% |
TIPS FOR CHOOSING THE RIGHT TYPE OF PROGRAM FOR YOU
Your individual situation is likely to involve multiple factors relevant to choosing the type of MBA program that will best fit you. The discussion above, however, leads to the following tentative conclusions:
Consider the advantages and disadvantages of each program type discussed above; determine which apply to you—and to what extent. Thus, if you think your employer would fund you for a part-time program, ascertain for certain just how much financial support you can count on. Then, determine what amount of financial aid you could get from a full-time program (although this may require actually applying to such a program).
The older you are, the more you should consider doing a one-year MBA or an executive program.
If you are very young, consider applying to a program that will accept you now and (perhaps) defer your entry for another year or two.
If you need only to develop a narrow expertise, give some thought to the MBA alternatives listed below.
If you want to change careers, favor a two-year full-time program.
If you are currently in your mid-twenties and ready to get an MBA, it may not be a good idea to wait ten years to get an EMBA. Delaying getting a degree means that you delay its benefits as well—not only monetary benefits but also those involving expanding career choices and options.
If you intend to stay in your career, consider an alternative to a full-time two-year program: a part-time, an executive, or a one-year MBA.
Favor a part-time or executive MBA to the extent your current job pleases you and permits combining work and study, as long as you are fortunate enough to have a top-quality program available.
If you want to move to another country or work in an international field, consider attending a school abroad.
If you intend to work in a traditional MBA glamour field such as strategy consulting, private equity, or investment banking, you are probably best off attending a full-time program at the highest ranked school you can.
The quality and reputation of the program you attend matters as much as the type of program. If you live in Chicago and are admitted to the part-time program at either Booth (Chicago) or Kellogg, for example, you should consider long and hard whether to attend a full-time program at a school not ordinarily considered to be in the global top 20.
Check with prospective employers to determine the appropriateness of different programs—and program types. (See Chapter 3 for more about this.) Some employers, for instance, still do not value part-time and executive MBA programs as highly as they do full-time MBA programs.
Online MBA degrees have proliferated in recent years. The reasons for this are clear. The technology to support such programs has developed rapidly. Online programs now have a plethora of technology-driven tools at their disposal. Many combine streaming (and archived) lectures, webinars, self-paced learning modules, video conferencing, online documents and more in their arsenal. The ability to offer convenient programs at attractive prices has increased their acceptance by students, and eventually by employers, too.
Although they were initially offered largely by lesser or newer schools, some highly regarded schools now offer online programs. The list includes Kelley (Indiana), Kenan-Flagler (North Carolina), and Thunderbird in the United States; Aston, Henley, Imperial, Manchester, and Warwick in the United Kingdom; and IE (Spain) and Curtin (Australia) elsewhere in the world. Expect many more in the future, as technology continues to develop and such programs are more widely accepted.
Given the proliferation of online technologies and their increased use by many programs, however, one area of dispute remains: how to define an online program. Many executive MBA programs, for instance, retain their periodic residency periods but utilize one or another online method of keeping students and professors (and others) in touch during the in-between periods. Whether this makes them an “online” program is unclear. The rest of this discussion, however, will consider programs to be “online” only to the extent that the bulk of instruction as well as student group-work is conducted online.
Online MBA programs do not yet have as strong a reputation as residential programs do. The gap, however, is decreasing. There are a number of reasons for the improvement. Online education, in general, is becoming more accepted. For MBA programs, in particular, the increased use of online learning by highly regarded EMBA programs, and the offering of online programs by such respected schools as IE (Spain) and Kenan-Flagler (North Carolina), has started to eliminate the impression that online education is the province of lesser schools. Employers have also played a substantial role in this evolution. They like the fact that employees can improve their skills without leaving their jobs or needing time off to attend class. For those employers who foot the bill, the cheaper tuition of online programs is attractive. And given that many employers use online methods to update or train their employees, they have seen the practical value of the approach.
You will fit the typical profile for an online MBA student if:
Choosing an online MBA program is much like choosing a full-time or executive MBA program. There are, however, some important differences. One of the most important concerns the extent to which an online program requires that you attend one or more residential periods. Many do, especially at the start of the program. Bonding with other students, and thereby developing a useful network, is easier if there are substantial residential periods involved. The same is true if you can form a local study group. (Of course, you may be precluded from participation in either of these by your other responsibilities.)
Consider using the following questions in your initial investigation of an online program:
Before committing to a program, however, be sure that you have analyzed your learning style sufficiently to be sure that you will prosper in this environment. Be realistic, too, about your desire for actual, not virtual, social contact with classmates.
In the past, an MBA was resolutely a generalist degree. Even though the last portion of the program generally featured elective courses, thereby offering a chance to gain expertise in a specific field, there was no presumption that a student would enter any specific field. A large number of schools have changed this. There are now specialized MBAs designed for those who wish to enter fashion management, health care, luxury goods marketing, defense management, church management, and so on. A conservative count would put the different subjects on offer at fifty or more.
As with the master’s degrees in single subjects, one key question is whether you need a broad range of training or simply need to develop expertise in a more limited realm. If you are clear that you will remain in or enter a given field, there is no reason to avoid an MBA geared to that field. Both the structured curriculum and the networking possibilities are of potential value. Note, however, that many of the leading business schools have eschewed such specialized MBAs. Consequently, you should be in no hurry to attend a specialized course at a lesser school if you can get into a reasonably flexible program at a leading school.
For some years, leading European business schools and universities have offered an alternative to the MBA, often called a Master’s in Management. Meant for those with little or no experience, it could be either a one-year or two-year degree. Some programs are lockstep, with all students taking the same courses, whereas others offer some choice of courses, even to the point of offering one or more concentrations in various specialties. French programs have traditionally been the market leaders in Europe, but they now face stiff competition from leading British, Dutch, and other programs. And, at long last, several leading American universities—including Duke, Virginia, and Rochester—now offer such programs. (Note that the French—and many other Continental European programs—are two years in length, whereas the British, Dutch, Spanish, and American programs are one year long. Note, too, that a plethora of big-name schools now offer programs, including HEC (Paris), the London School of Economics, and London Business School.)
In the early days of this degree, it was not clear whether it would function as an MBA-replacement for the young—that is, with graduates not needing or seeking additional formal education—or as a career starter, with graduates eventually seeking additional training through an MBA or specialized master’s degree (such as a Master’s in Finance) later in their careers. Now, however, it is increasingly clear that most graduates of a Master’s in Management program will not seek additional degrees. Some schools are fighting this trend, however, by structuring their graduate program offerings in such a way as to lure their graduates back for a second graduate degree. Rochester’s Simon School, for example, offers one-year Master’s in Management degrees in various fields. Graduates of these degrees can return later on to complete their MBA in one year. Whether they will do so in large numbers is not clear. Yet it certainly provides a useful option for those looking to switch careers later on—or facing a period of unemployment that can be put to good use back in the classroom.
The Financial Times, in its annual ranking of European programs, provides a handy summary of leading programs.
The other major competitor to an MBA remains the Master’s in Finance. One reason for its popularity is that graduates of the leading programs have commanded MBA-like salaries, which is not the case for graduates of other specialized master’s programs (as discussed below). Another is that its specialized nature appeals to those who are (or wish to become) specialists, without a need for the general management underpinnings of an MBA. Thus, much of the MBA first-year core—from operations management to marketing—may be of little value to someone who will trade currencies for most of his or her career.
Some Master’s in Finance programs, usually with titles such as “financial engineering,” are extremely mathematical in nature and geared to producing “quants”—the financial engineers meant to design new derivatives and other immensely complicated products for Wall Street and The City (of London) to sell. These programs are often found at highly prestigious universities (including Cambridge, Princeton, Stanford, Berkeley, and the like). Competition to get into them is fierce. Predictably, their graduates have commanded high salaries from the leading finance firms in the world.
More traditional programs continue to focus on turning out traditional financial analysts, corporate finance specialists, and the like. Some of these programs are geared to a specific industry, such as insurance or health care. Although quantitative in nature, they are no match for the rocket science taught in the financial engineering programs. Similarly, their graduates tend not to command salaries equal to those offered to MBA graduates.
Most master’s programs in finance are one year long. Unsurprisingly, given the concentration of modern financial activities in London and New York, many of the leading programs are in the UK and United States. (And given their appeal to practitioners, many programs offer part-time options.) Even those courses elsewhere in the world that were once taught largely or partially in languages other than English are switching their courses to English because it is definitively the international language of finance.
A sampling of leading programs:
North America: Anderson (UCLA), Columbia, Haas (UC Berkeley), Princeton, Simon (Rochester), Sloan (MIT), Stanford, Stern (NYU), Tepper (Carnegie Mellon), and Rotman (Toronto)
UK: Cass (City), Cranfield, Imperial, Judge (Cambridge), London Business School, London School of Economics, Manchester, Saïd (Oxford), Warwick
Continental Europe: Bocconi (Milan), ESSEC (Paris), HEC (Paris), IE (Spain), Rotterdam
If you are interested in developing your skills in essentially one area only, you can do a specialized master’s degree in accounting, information systems, marketing, real estate, supply chain management, or any of a dozen other business fields. (The Master’s in Finance degree, discussed above, is one example.) It should be emphasized, however, that these degrees are not suitable for those who wish to receive training in the usual core courses of an MBA program, pursue advanced training in multiple fields, or become general managers.
The programs differ in many important regards. In some fields, such as accounting, the norm is for students to enter shortly after graduating from college. In others, such as supply chain management, most programs are open only to those with substantial experience. In some fields the best programs are offered only on a full-time basis, whereas in others the best ones are offered on either a full-time or part-time (or only part-time) basis.
In some fields, such as information systems, American universities offer very strong programs at the master’s level. In many fields, however, no leading American school offers a master’s program. (Good luck finding a Master’s in Marketing at one of America’s top dozen universities.) This is by no means the case in Europe. Those looking for a specialist master’s degree in a subject ignored by top American schools are advised to consider Europe’s leading universities, whether the London School of Economics, HEC (Paris), or any of two dozen others.
THE CAREER SERVICES DIRECTORS DISCUSS PART-TIME, FULL-TIME, AND EMBA PROGRAMS
Those who elect the part-time program generally do so because they want to keep their stream of income or figure that they will be able to apply what they learn in class to the workplace the next day. Those opting for one of the full-time programs (the four-quarter or six-quarter) are looking for a different kind of experience. They want to be able to focus totally on the experience, both academic and social. They also want a chance to step back and rethink what they want to do in their careers. ROXANNE HORI, KELLOGG
Our part-time and full-time programs have the same faculty, and many students cross-register for courses in the other program. Partly as a result, the two degrees are viewed the same by the top employers—but you do get a different menu of support services from the school. GLENN SYKES, BooTH (CHICAGO)
A part-time or executive program is for people with substantial experience who want to continue either with their same company or career. A full-time program is really to help people at the beginning of their careers or those who are looking to change careers. EVERETTE FORTNER, DARDEN
The part-time population is focused on developing technical and analytical skills. To a certain extent these students also look to participate in some co-curricular and extracurricular activities, but obviously their work-life balance places some limitations on these. Career-wise, they are likely to be looking to enhance their skills within their same firm or industry. PAMELA MITTMAN, STERN (NYU)
Changing careers is not as easy if you do a part-time program. People on part-time programs are generally working during the day, which greatly constrains the amount of extra time they have to work on extra projects outside of their academics. Also, they’re still building up their résumés in their current careers in terms of who they are and what they can do. The longer you stay in the same kind of job doing the same kind of thing, the more difficult it is for an employer to be convinced you can do something different. ANDY CHAN, STANFORD
The obvious lifestyle issues affect the part-time versus full-time choice, of course, but there’s not much difference between the two programs here. For example, virtually the same faculty teaches in each program. The experience is different, however, given that you can keep working while doing the part-time program (and employers are more willing to pay for it), whereas full-time students can more easily access all of the activities outside the classroom—student organizations, speakers, and so on—as well as spend much more time with their peers. MICHELE ROGERS, KELLOGG (ADMISSIONS DIRECTOR)
The four-quarter program (4Q) is for those with undergraduate degrees in business or comparable work experience, who can do the core courses on an accelerated basis. The screening process for the 4Q and the six-quarter program are the same, as is the faculty. Not surprisingly, employers value the two programs equally. ROXANNE HORI, KELLOGG
There is a greater opportunity to make a successful change in a two-year program. Students are exposed to more industries and functions over the longer course. In addition, they have time to develop more substantial relationships with their classmates, who are potentially very important career resources for them immediately and down the road. PETER J. DEGNAN, WHARTON
A one-year program is a more intense experience. You forego less salary, but have less opportunity to do projects and internships. A two-year program offers more time for reflection. You can experiment with your career (via project work and internships), plus you can study in more depth. GRAHAM HASTIE, LONDON
Americans: Going to an international school increases the chances of being able to work internationally in the near-term after business school. For one thing, there are more international employers recruiting at international schools, so you’re more likely to be considered. Also, the exposure—in terms of the academics, the faculty, and the environment (and hopefully you’re working on your language skills)—and the student and alumni network there can be very helpful…. At the top U.S. schools, an American student will have the potential opportunity to work abroad, but it’s not easy if you don’t have much in your background showing you’re international by nature—either by language skills or by experience working abroad. In that case, there will be other people at the school who have that background and will be more competitive for getting that sort of job. ANDY CHAN, STANFORD
For Europeans making the choice: Leading European programs have both multinational and American recruiters coming to their schools, so your chances of getting a job in the United States are good. Of course your chances of initially getting a job in the United States are better at a U.S.-based business school. So if you’re European and you want to start your career in the United States, you probably have a slightly higher probability of doing so if you attend a U.S. business school. For Americans: You can apply the same logic in reverse. EVERETTE FORTNER, DARDEN
The couple top European business schools have a more international makeup of their student body and of their faculty, so if you’re looking for a truly international degree, a European school might be a good choice. EVERETTE FORTNER, DARDEN
Multinationals recruit here, but the more parochial American companies do not. If you want to work for Goldman in New York, there’s no problem, but there may be if you want to work for Boeing, Gillette, or Kraft. To work for the latter type of company, it would be better to do business school in the States—although we do have reciprocal career center arrangements with top U.S. schools, some of which even allow our students on-campus interviewing privileges. We have a lot of Americans on the program (perhaps 20 percent, in fact), two-thirds of whom choose to remain in Europe to work. CHRIS BRISTOW, LONDON
It’s no problem at all for Americans to get a job back in the United States, but most of the Americans doing the program want to stay in Europe rather than return to the United States. KATTY OOMS SUTER, IMD
You need to really think about the choice. What kind of experience would you like to have? If you would enjoy the full-time MBA experience, including its social aspects, can take two years off to pursue the degree, and can’t imagine combining work and study, then it’s easy to choose. LING TEE, IESE/SPAIN (ADMISSIONS DIRECTOR)
Company-sponsored EMBA students do not have access to on-campus recruiting unless their employer permits it. The self-sponsored do have access, of course. REGINA RESNICK, COLUMBIA
Executive MBA students average thirty-seven years old, with eight to ten years of management experience. All are very successful but are now ready to learn the “theory” behind their gut reactions. Due to the amount of experience these students have had, they are at a different professional level than most of the day (full-time) students. A major reason for students to apply to the executive MBA program is that they will learn a great deal from each other and their corporate cultures. As with the day students, networking is ever important. ROXANNE HORI, KELLOGG
The major differences between full-time and executive MBA programs are where the students are coming from and what their goals are. Students in the full-time program are early in their careers: They’re generally still trying to figure out where they’re headed and how they’re going to get there. Students in the EMBA program, however, are older and much more comfortable in their careers. Because ours is a general management program, the students are likely to be functional specialists who are here to acquire the tools to become general managers—CFOs, CEOs, and so on. The two groups of students are very different, meaning that class discussions are inevitably very different. PATTY KEEGAN, BOOTH (CHICAGO) (ADMISSIONS)
EMBA students never leave their professional environments, so they don’t change the way they think. The MBA students, however, have a contemplative experience; they’re immersed in the academic environment for two years. They have to do a project for a real company, and they shadow a real executive. The social connections with other students are also deeper…. The Sloan program, for people in their late thirties, with a substantial career behind them, is different from the other programs. Many Sloan students will already have done an MBA, perhaps ten years before. They want to take a sabbatical and reflect on where they are headed. GRAHAM HASTIE, LONDON
People who choose executive MBA programs want to do their degree whilst working in a challenging career full-time. In the main, they’re going to be older and more experienced than full-time MBA students. They’re going to feel they’re on a career path that is taking them somewhere and will be reluctant to interrupt this progression. They may wish to make an immediate impact on their performance or on their company’s performance. They want to have an injection of knowledge, skills, energy, and the rich experience of an MBA while still pursuing their careers. LYN HOFFMAN, LONDON (ADMISSIONS DIRECTOR)
Many companies like to recruit EMBA students because they can start work immediately (rather than six or eight months later, as is the case with full-time students recruited in November to start work in July). Most companies that hire here have hired EMBAs as well as full-time MBAs. CHRIS BRISTOW, LONDON
A specialized degree tends to lead you to a specialized set of career options, whereas an MBA gives you a variety of skills that lead you eventually to general management and give you flexibility as to the career paths you can choose. A master’s degree will make you smart in that discipline, so the companies that need in-depth knowledge in that discipline will be interested in hiring you, but they will be relatively few. Your career choices will be much more limited than with an MBA. EVERETTE FORTNER, DARDEN
The Master’s in Finance degree is much narrower, much more focused, than the MBA. It’s appropriate if you are very clear that, for instance, investment banking is for you. The MBA is a general management degree; it’s a much more flexible qualification, allowing you to explore different career options. Interestingly, some of the people who do the Master’s in Finance have previously done MBAs at second-tier schools; some go on to do MBAs afterwards. CHRIS BRISTOW, LONDON
They really look at the candidates and their career goals rather than whether they are in the part-time or full-time programs. The larger firms are interested in both populations: they’re looking for as many talented individuals as possible…. The full-time program does have more students who are interested in changing careers and beginning formal associate programs. Many of our part-time students here may be a bit further along in their careers and therefore a bit more reluctant to take a cut in salary or title (in starting over in a new field). Thus, the consulting firms and banks, who are looking to fill Associate Programs or training classes, may find more full-time students interested in starting post-MBA careers with them. PAMELA MITTMAN, STERN (NYU)
Consulting: It’s an apprenticeship model, so they like you to start at a set entry level. They hire primarily from the MBA program, but may consider the EMBA or M.S. Finance programs. Some people within each firm care more about experience (to distinguish firms with clients); others care more about native talent. There are also a small number of specialist positions for which firms seek more experienced people. GRAHAM HASTIE, LONDON
Investment banks: The MBA and Masters in Finance programs are obvious places for them to look. They look for people with experience in banking to move to more senior levels. There is some willingness to take in lateral hires (from the EMBA and Sloan programs). But these are individual hires—bespoke hiring on a one-off basis to fill very specific needs. GRAHAM HASTIE, LONDON
