Recent Trends in European EMBA Market

Business schools see a clear upswing in demand for their EMBA programs, with renewed company support and high quality candidates investing in their own bright future.

As the world economy shows signs of consolidated growth, and corporate results bring renewed confidence to boardrooms, so business schools are reporting strong demand for their Executive MBA programs. Destined for senior managers and younger executives on a fast-track managerial career, the Executive MBA has been the growth area in management education over the past five years, as the likes of INSEAD, Oxford and even the London School of Economics have launched programs to an internationally mobile audience.

"We've seen a clear upswing in interest over the past 9 months", reports Elaine Sharp, Marketing Manager at the Saïd Business School EMBA, Oxford University. "Whilst demand in Western Europe has been far stronger, enquiries have come from right across the world. Our newly admitted class includes students from San Francisco, Stockholm, Reykjavik and Moscow."

Since the 2000 launch of the Global Trium Executive MBA, an alliance of NYU Stern, LSE and HEC Paris, the program has seen applications jump by more than 140%. "The partnership has been an extremely successful model, as evidenced by the continued growth of the Trium program, " explains Tom Cooley, Dean of the NYU Stern School of Business. "Together we created a global educational experience that's clearly meeting an important need for today's business leaders around the world."

The traditional draw of the Executive MBA program was from the local area. Schools now describe classrooms with students from the four corners of the earth. Stephan Kayser, Acting Dean and Program Director at the Kellogg WHU Executive MBA program has students from Beirut, Moscow, Oslo and London. "The Executive MBA offers such modularity - students can opt for either the weekend program, with minimal impact on their availability at work, or the week-long program, using vacation days over a two year period."

Elaine Sharp agrees that a new breed of student is taking full advantage of the flexible learning platform: "The majority of the Saïd EMBA class travel extensively. They can do their assignment reading at the airport, or on a flight. Our e-learning platform enables them to log on in their hotel - no matter what the time differences, technology provides the solution."

But what is the driver that is making the Executive MBA such a hot ticket? After all, the program requires a considerable investment of both time and money from both employer and employee. Ralph Klingmann, CEO of a pharmaceuticals subsidiary in South Africa is a global EMBA student at IESE in Barcelona. When he began the program he was a product director based in Hanover, Germany. "Some of my colleagues have wondered why, at 39, I am prepared to sacrifice my nights and weekends when I have now probably reached the point in my life where an MBA cannot be expected to provide any significant financial gain.

I have tried to explain how, after 16 years of work and travel, my perspective regarding the purpose of my career has changed. I point out that as my responsibilities have grown, so have my obligations towards the people who are directly or indirectly affected by my actions. It was with this in mind that I wanted to ensure that I am prepared for all that may lie ahead in my career. I see the EMBA as the best means of fulfilling these obligations - both to myself and to the people who work with me."

Ralph is not the only one to have moved his career forward whilst studying. Frédéric Dervieux, technical manager, Ice Cream Europe at Nestlé sees the direct impact of the Trium Executive MBA program on his career. "The way the Trium program was organized allowed me to meet the requirements of my current position, while gaining the skills that propelled me to my next one. In fact, I was promoted twice during the 16 months of the program due, in part, to the additional expertise I gained from it."

Many EMBA students also emphasize the importance of the quality and background of the professors to keep them motivated and enhance their learning experience. UK based student, John Domagalski, was impressed by the professors at the Kellogg WHU program: "I particularly liked the fact that only senior faculty members were used to teach courses. They did a very good job of distilling complex academic research into practical information that could be directly applied in the workplace. They were also able to keep me interested and motivated to learn, which could be difficult given my sometimes hectic work schedule."

The benefits of being taught by the business schools' top faculty, enjoying a flexible curriculum using a variety of delivery methods, and having the ability to earn and move ahead without interrupting your career, all make a compelling case for more and more professionals.

At the same time there is a greater willingness of companies to support such programs, either in the form of direct financial sponsorship, or by allowing time off from work. With 104,000 employees in over 60 countries, Arcelor has grown through mergers to become the world's largest steel producer. They have sponsored students at the ESCP-EAP European Executive MBA to help manage the company transformation.

Joël Frigière, head of University Management at Arcelor explains their commitment. "The European Executive MBA has contributed to the integration of the managers of Arcelor and the transformation of the company after the merger that led to the creation of Arcelor II. It places the emphasis on mobility. Every year, about a dozen candidates from all parts of the world are selected by the Group's Career Committees. This type of project is an effective integration tool for our managers who have a traditional engineering culture. Now, they have to think along business lines. The results of their reflections and the implementation of their recommendations is a concrete and direct consequence of the MBA."

Apple Computer in Europe provided the financial backing for Juan Castellanos, Country Manager for Spain. "Looking back I see that Apple sponsored me for IESE's Global Executive MBA as part of a comprehensive plan to facilitate a smooth transition when our country manager would retire. I think it was important that Apple had a plan for how to put the knowledge I was gaining to good use. I am grateful for the investment they made in me, and in return they have gained a more competent professional and a very loyal and committed employee who plans to be around for a long time."

Of the recent intake at the Saïd Business School, 40% of the students were fully funded by their companies. Yasuji Nagase, President and CEO of the Hitachi Chemical Company, is a strong supporter of the program. "The Oxford EMBA course with its flexible modular program is ideal for business executives unable to leave their current duties. And Oxford's approach integrating Management and Science meets Hitachi Chemical's needs. Moreover, human networking opportunities associated with the international character of the course represent essential assets for future executives."

Nevertheless, 45% of the Saïd EMBA students are self-funded. Many other schools are reporting a similar increase in the number of students who are prepared to pay for their Executive MBA. For Matt Symonds, editor of Top ExecEd Guide, the fact that a company is already providing time away from work is a clear statement of support. "Allowing an employee to spend several weeks away from work is a demonstration that the company not only believes in them, but wants to see them develop and do well."

Matt Symonds also explains that a lack of company support has not prevented professionals from investing in their own development. "Unlike the full-time MBA, these students do not have to forego their salary for one or two years. Their company is still expected to support their studies even if there is no financial contribution, and the student can negotiate a lighter workload. By combining their learning with day-to-day professional experience, they can demonstrate their new strategic worth to their companies."

A further benefit of the increase in self-funded EMBA students is the even more motivated and higher quality pool of applicants. ESCP-EAP has seen a 10% rise in self-funding in the last 12 months, and Murièle Gadaut comments, "Candidates without company sponsorship are often those whose salary are in line with their high level of corporate responsibility. Thus they are able to pay for the program themselves. Not only do they have tremendous professional experience, but they are more motivated and want to get even more our of the program."

Business schools are responding to this demand. As Exec MBA Villages in Frankfurt, Paris and London of the World MBA Tour in March 2004 demonstrate, the European market has an increasing number of Exec MBA programs available, and with more recent programs such as Saïd and INSEAD alongside established players such as LBS, ESSEC, HEC and WHU, the options are growing. 'Supply is starting to catch up with demand,' reports Matt Symonds. 'More than 20 Exec MBA programs will attend the Exec MBA Villages in March, meeting a growing number of very well qualified candidates and well-informed training managers. There is also the opportunity for senior professionals and HR Directors to attend sample classes from a top professor of the INSEAD and IMD Exec MBA programs, better to understand the dynamics of the Exec MBA classroom. The Exec MBA is becoming a dynamic element in Europe's race to match the world's best management standards.'

Top Career, 12.02.2004