Weighing a Specialized MBA Against a Top-Ranked Program

Emma Collins, MBAOnline

January 7, 2013

Today’s post continues an important conversation about the relative value of different college degrees. Writer Emma Collins introduces blog readers to the idea of the “specialized MBA,” and looks at both the ups and downs of this growing trend. Emma is on staff with a website that provides educational advice for students and their families, and just released 2012 class rankings of the best MBA programs.

The business school marketplace, long a bastion of academic excellence and stability, has been seeing a lot of changes recently. Perhaps most significant is the shift to more nuanced training programs. While most of the nation’s top schools still offer standard and broadly-focused MBA programs, a growing number are also promoting educational opportunities that are much more tailored to specific marketing needs. Many second- and third-tier schools are following suit, often as a means of differentiating their programming and infusing new, potentially competitive aspects to what might otherwise be simply second-best options. Many in the field applaud this shift as a way of preparing students for an ever-shrinking job market. Others see it as little more than a marketing gimmick, however. Different programs obviously have different motivations, strengths, and education potential, though the trend seems to be here to stay; as such, a hard look at the pros and cons has perhaps never been more important.

The mechanism behind a “specialized” MBA is simple. Rather than providing students with simply an overview of many different business topics, the curriculum is focused specifically on one industry or type of work. “Whether they come in the form of an Executive MBA degree in a particular industry or a separate certificate earned in addition to the MBA, they all have a common aim: to give students a foundation in general management, from basic finance to strategy, and an in-depth knowledge of a particular industry,” Bloomberg Businessweek said in an article evaluating the growing trend. Students will typically zero in on case studies and examples pulled directly from the relevant field, and hands-on work and internships are often a big part of the curriculum.  Most of the time, professors are adjuncts who have worked, usually for years on end, in the industry being studied.

A survey of some of the most popular specialized MBA programs currently being offered includes the following:

• Boston College’s joint MA/MBA program in theology, pastoral ministry, and church administration
• Johns Hopkins Carey School’s MBAs in biotechnology, nursing, and design leadership
• American University’s MBA in sustainability management
• George Mason University’s MBAs in real estate and cyber security
• University of California-Davis’ part-time wine studies executive MBA program

To be certain, a number of industries stand to benefit from an influx of business graduates with specialty knowledge. This is particularly true of small businesses and entrepreneurial ventures, where the big-box training received in many of the top-ranked programs may simply not be relevant. The most prestigious business schools typically prepare their graduates for work in the corporate world, and the training is usually designed with an eye to preparing students for Wall Street, investment banking, and high-powered executive jobs. Some students leverage this training to start their own entrepreneurial ventures, often with great success. For those who simply want to find jobs in ground-level enterprises, though, a top-notch education is not always useful.

“Business schools have to be responsive to what the consumer is telling us,” Lawrence Ward, associate dean for academic programs at American University, told The Washington Post. “And increasingly they’re saying, ‘I don’t see enough value in a traditional two-year program.’”

At the same time, however, specialized programs can be quite limiting. “While established programs have placement records on par with those of their general MBAs, many newer programs have not yet established the kind of recruiting relationships that guarantee students high-paying jobs at graduation,” Bloomberg Businessweek has said. “And graduates always run the risk of getting hamstrung by their specialties later in their careers, when an industry downturn forces them to look outside their specialties for opportunities.”

When determining whether a specialized MBA is worth it, students must critically look at a couple of different factors. First, they need a clear view of what they want their education to do. A student who is looking for an “in” into a particularly coveted industry may do well in a specialized program, particularly if she is outgoing and willing to put some work into selling herself and her experiences. Someone simply looking for a shortcut to an MBA might suffer later on, though.

Second, students need to weigh the relative costs. Getting a business degree is usually very expensive, and tuition does not usually discriminate based on quality. A degree from a top-five school very often costs about the same as one from a school with much lower credentials. Getting a specialization can make the financial burden worth the risk of less prestige in some cases—but not always. Much depends on the individual student, the subject area, and the potential for market growth in that sector.

As with so many things in the education world today, a lot depends on subjective facts. The specialized MBA can be both a blessing and a curse, depending on the angle from which it is viewed. The trend seems here to stay, and the options and choices seem to expand every year. This certainly gives students a lot to think about, but the decision of what to study and where is one that should not be taken lightly, no matter how attractive or useful a particular program may seem on the surface.

“California Dreamin’” is Becoming a Reality

Steven C. Panagiotakos, Strategic Policy Advisor for Greenwood & Hall

June 14, 2012

For many out-of-state public and private universities and colleges, the California applicant market was just a dream, but is now becoming a reality.

The California budget crisis has caused huge cuts in one of America’s finest public higher education system, specifically a $1.7 billion decrease in Fiscal Year 2012 alone. This level of disinvesting in its higher education, has led some California campuses to take extraordinary acts such as freezing of enrollments, universal waiting lists, limiting class offerings, unhealthy academic advising ratios and unprecedented tuition increases to try to keep their educational houses in order.

The student response: a mass exodus to other states. Between 2000 and 2010, higher education saw a 90 percent increase in out-of-state matriculation.

A recent report by the Public Policy Institute of California found that California high school graduates going to University of California or California State schools has fallen from 21.5 percent in 2006 to 17.8 percent in 2010, with an almost 20 percent enrollment drop among California’s top high school students (as measured by completion of the A-G course requirements to attend a CSU or UC school) decreasing from 67 percent to 55 percent.

Exacerbating the situation further is the fact that the heralded community college transfer system is being severely compromised by cuts to the community college and state university systems. No longer can those fortunate enough to get into a community college and into the classes they need find an automatic matriculation to the Cal State system. For students, this means education purgatory in California or looking elsewhere.

This November, California voters will be asked to approve a tax increase referendum that if not approved, will pile on further cuts to the California higher education system, leaving officials no choice but to close programs and further raise tuitions.

All of this is creating an opportunity for non-California schools to step in and recruit these California students to their campuses. Naturally, California’s neighboring states like Arizona, Colorado, Nevada and Oregon have been reaping the benefits of this migration, but schools across the country, including on the East coast, are starting to experience upticks in California applications and admissions.

Noticing this dynamic shift shaping up over a year ago, Greenwood & Hall began studying the changing market and preparing a California Admissions Plan that gives non-California schools a blueprint to strategically recruit in the Golden State.

The California students are there and are looking for options. Provide them a quality education, a good value proposition and a compelling college experience, and “California Dreamin’” can become a reality for your school.

Meeting The Need for Bachelor’s Degrees

Steven C. Panagiotakos, Strategic Policy Advisor for Greenwood & Hall

April 5, 2012

A few weeks ago, I attended the Community College Baccalaureate Association’s 12^th Annual International Conference in Philadelphia. As I listened to some of the presentations, I couldn’t help but think that if we are to reach the ambitious goals set by President Obama for 2020 Graduation Rates, then the community colleges will need to be empowered.

However, that empowerment, in the area of offering and awarding baccalaureate degrees, is moving very deliberately. It is a state by state decision and the roadblocks have been many. From concerns about mission creep to accreditation issues to the higher costs to the duplication of services, community college baccalaureates are on a slow moving train. They will eventually get to their final destinations because I believe the consumer will demand it.

But, time is not on our side, if we are to meet the 2020 goals for 25-34 year olds, which is to have the best educated populace in the world. Currently, our rate of graduates is at 38%, which ranks 14^th in the world.

In September in an article that appeared in The Chronicle, Duke’s Independent Daily, James Kaval, deputy undersecretary at the US Department of Education stated the following, “Getting there is not going to be easy.  Is it feasible to think we’re going to get to 60 percent within a decade? It’s an ambitious goal.”

According to US Department of Education, this fall, the majority of high school graduates enrolled in community colleges rather than 4 year institutions. This doesn’t take into account the large number of non-traditional students and adult learners whom are also making the decision for community college. Therefore, the pool of students that are already at the community college is, in most cases growing, and growing substantially.

This is a trend that should continue with students and their families continuing to look for the most economical route to a baccalaureate degree.  Rising costs in college tuition and fees has been identified as one of the major obstacles of students not completing. However, with cutbacks at the state level and money tight at the federal level, more of the cost will be taken on by students and their families. Therefore, the least expensive path to a bachelor’s degree will become more and more attractive and chosen.

With the average community college tuition and fees at $2,963.00, the savings from taking your first two years at a community college are substantial and a huge decision influencer. (Compare that to the four year public cost of $8,244 in-state and $12,526 out of state and the four year private cost of $28,500.00). 

There is no doubt that the community college pool of bachelor’s degree seekers will be burgeoning for the foreseeable future.

Community College Week, in its March 5, 2012 edition, listed a 2010 Cohort, Survey of Entering Student Engagement and found that 73% had the goal of transferring to a 4 year college.

However, in July 2011, Richard Kahlenberg pointed to research in the Chronicle of Higher Education that showed only 10% of community college graduates end up attaining a bachelor’s degree.

This leaves an extremely large population of students with an unfulfilled goal.

Currently, if a community college doesn’t have baccalaureate authority, then it can provide a seamless matriculation for their students through articulation, transfer, 2 plus 2 and partnership agreements. This means that the four year institutions that are parties to the agreement can allow enrollment to happen organically or they can maximize their position.

This can be done by either offering courses at the community college campus or at a geographically convenient off campus site or at the college or university campus or online.  The question is not where to educate, as much as, how many to educate. That is a function of marketing and recruitment. The students are present and ready. Their initial goal is to attain a bachelor’s degree. Now, it is up to the four year institutions to develop the strategies to motivate and meet this demand.

This is a fertile area for an entrepreneurial college or university to sow but it will need a well thought out plan and committed implementation. That’s where Greenwood & Hall can help.  We can bring our experience and expertise of being a leader in enrollment management and student success to the table to help develop the necessary plan and best practices so that a university or college can reach its true potential in this area.

First Time, Full Time is not All Time, Any Time

Steven C. Panagiotakos, Strategic Policy Advisor for Greenwood & Hall

October 3, 2011

Every student counts but not when it comes to Retention Rates or Graduation Rates.

These rates, that are often quoted and relied upon, only measure first time, full time students. However, this group only makes up about 60% of all higher education students. 

The other 40% is made up of a growing population of part time students, non-first time students and transfers. But they are not counted in the retention and graduation numbers sent by schools to the federal Integrated Postsecondary Education Data System (IPEDS).

How could this be?  Four out of every ten students not counted. Policy, rankings and admissions decisions are based on these important yet incomplete numbers.

That is one of the salient points made by Complete College America in a recent report entitled “Time is the Enemy.”  If we are to get a true picture of student success, let’s get a complete picture by looking at the non-traditional students too.

The cohort used for the study was all public higher education students from 33 participating states, which came to almost 10 million students. The methodology utilized was the Complete College/National Governor’s Association Common Completion Metrics.

See www.completecollege.org

When the complete picture emerges, it is even more troubling than the partial picture of a 57.2% six year Graduation Rate for all first time, full time students at four year institutions.

As might be expected, part time students, who are balancing families, lives and jobs, are struggling to make it through to completion within the IPEDS 150% time frame.

And, unfortunately, the vast majority don’t.

Maybe, because they are only attending part time, we need to look at an expanded time frame for completion. And that’s what this study did.

Full time     Part time           Full time     Part time           Full time     Part Time

27.8%             12.2%               18.8%             7.8%                 60.6%              24.3%

One year certificate               Two year degree               Four Year Degree

within two years                      within four years             within eight years

We would naturally believe that with increased time, the completion rates of part time students would be much closer to full time students.  However, even when you increase the number of years to 200%, the completion of part time students is still abysmal.

The problem is more life than time. Part time students have to become master jugglers to make it through. They don’t have the benefit of being able to be single focused like full time students.

So what can be done?

The report makes these recommendations for helping part time students complete.

1. Use Block Class Schedules for certainty and efficiency and to fit busy lives.
2. Quicken the time to completion with shorter terms, less time for breaks and summer schedules.
3. Make registration easy by signing up just once for a full program of study.
4. Decrease class time by use of eLearning.
5. Develop student support and learning networks.
6. Place remediation into the regular curriculum.
7. Full transparency before enrollment of Cost, Graduation Rates, and gainful employment.                                                  

This study has certainly given us the empirical evidence to identify the severity of the problem and the recommendations and motivation to do something about it. Even though this study only looked at 33 states and only looked at public higher education, it has given the clarion call that when it comes to student success; all students must count and be counted.

Student Default’s Unabated Climb

Steven C. Panagiotakos , Strategic Policy Advisor Greenwood & Hall

September 16, 2011

This week the U.S. Department of Education announced the Student Default rates for borrowers who were to begin repayment after October 1, 2008 and had defaulted by September 30, 2010 and the numbers were dismal.

Of the approximately 3.6 million borrowers in the 2009 cohort, 320,000 had defaulted for an over-all Default rate of 8.8%. This rate was an increase from last year’s 7%, representing a 26% increase in one year. This continues a troubling trend that has seen overall default almost double in only four years (2005 4.6% DR).

As you can see from the graph below, the increase has occurred in all three sectors of higher education with a 24% one year increase in not-for-profits, a 22% one year increase in publics and a 36% one year increase in for-profits.

The other group, which is not counted in these numbers, is those who are delinquent but not yet in default. This means that there is another large number of borrowers who are having trouble paying back their loans and probably receiving a negative credit history as a result.

There is no doubt that much of the problem can be attributed to the lack of job opportunities and the difficult financial times. In fact, young college graduates, those under 25, are venturing into the worst employment market since the Labor Department started tracking their cohort in 1985.

From April 2010 to March 2011, the unemployment rate for young college graduates was 9.7%. This is significantly higher for this group at the same time during the last two recessions, 6.4 summer 2003 and 6.9% summer 1992.

The unemployment numbers are even more pronounced for Hispanic and Black graduates.

According to the Economic Policy Institute’s Report “The Class of 2011”, this group of graduates will be trying to start their careers in the highest unemployment rate for them since the onset of the Great Recession.   

And those who are fortunate to find jobs are making 10% less than new graduates did 3 years ago.

New York city Mayor, Michael Bloomberg just today cautioned of the possibility of riots in the streets if the federal government is unable to generate jobs. Bloomberg stated in his weekly radio show, “We have a lot of kids graduating college, can’t find jobs…That’s what happened in Cairo. That’s what happened in Madrid. You don’t want those kinds of riots here.”

So with such a bleak labor market can anything be done?

The answer is a resounding YES.

First, student loan literacy must be increased. It’s not just a piece of paper or a few words at the application or disbursement stage. Institutions must put in place a comprehensive program to continue to remind and educate student borrowers and their families about their responsibilities, the consequences and most importantly their help options throughout their loan term.

Many borrowers are unaware of their help options.

For example, in the recent New York Times editorial, “Help Needed for Student Debtors”, it is noted that the Income Based Repayment plan (IBR), which can lower a borrower’s monthly payment by re-determining it in relation to his or her income and family size, goes unknown and unused by many borrowers in distress.  

Also, colleges and universities must make Retention, Persistence and Graduation a separate program that is given the money, the resources, and the planning to help students to degree or certificate completion. After all, even in this economy and job market, those with a college degree or certificate are faring much better finding and keeping a job at a better salary than those without one.