Which MBA? Making the right choice of executive education George Bickerstaffe The following is extracted from the 18th edition of Which MBA?. The full version includes details on different delivery methods, such as part-time, distance-learning and executive MBAs. It also provides in-depth profiles of 120 major business schools, including a full breakdown of schools' rankings. The book is available from the Economist bookshop at: http://www.which-mba.com/ Pearson Education Limited Edinburgh Gate, Harlow, Essex CM20 2JE Website: http://www.pearsoned.co.uk The Economist Intelligence Unit The Economist Intelligence Unit is a specialist publisher serving companies establishing and managing operations across national borders. For over 50 years it has been a source of information on business developments, economic and political trends, government regulations and corporate practice worldwide. 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London New York Hong Kong The Economist Intelligence Unit The Economist Intelligence Unit The Economist Intelligence Unit 26 Red Lion Square The Economist Building 60/F, Central Plaza London 111 West 57th Street 18 Harbour Road SW1R 4HQ New York Wanchai United Kingdom NY 10019, US Hong Kong Tel: (44.20) 7576 8000 Tel: (1.212) 554 0600 Tel: (852) 2585 3888 Fax: (44.20) 7576 8476 Fax: (1.212) 586 1181/2 Fax: (852) 2802 7638 E-mail: [email protected] E-mail: [email protected] E-mail: [email protected] Website: http://www.eiu.com Electronic delivery This publication can be viewed by subscribing online at http://store.eiu.com Copyright © 2006 The Economist Intelligence Unit Limited. All rights reserved. Neither this publication nor any part of it may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the Economist Intelligence Unit Limited. ISBN-13: 978-0-273-7071-4 ISBN-10: 0-273-71071-0 British Library Cataloguing in Publication Data. A catalogue of this publication is available from the British Library. The authors of EIU Research Reports are drawn from a wide range of professional and academic disciplines. All the information in the reports is verified to the best of the authors’ and the publisher’s ability, but neither can accept responsibility for loss arising from decisions based on these reports. Where opinion is expressed, it is that of the authors, which does not necessarily coincide with the editorial views of the Economist Intelligence Unit Limited or of The Economist Newspaper Limited. 10 9 8 7 6 5 4 3 2 1 09 08 07 06 05 Printed and bound in Great Britain by Ashford Colour Press Ltd., Gosport. 5402 IMD Which MBA ad.qxd 21.6.2006 11:08 Page 1 Have you got what it takes to be a world-class leader? 90 exceptional people experience the IMD MBA each year. Launch yourself into the challenge of this intensive, one-year leadership development program: a life-changing experience. Are you: • Bright, successful, on the fast track, wanting to make it to the top? • A young, experienced international manager with a global mindset and a burning ambition to lead? • Ready to think outside the box and driven by the desire to make a difference? If so, IMD is the place for you. Visit us at: www.imd.ch/mba tel: +41 21 618 02 98 fax: +41 21 618 06 15 e-mail: [email protected] IMD – International Institute for Management Development Chemin de Bellerive 23, PO Box 915, CH-1001 Lausanne, Switzerland Contents Which skills will tomorrow’s leader need? 7 Full-time MBAs 19 Full-time MBA rankings 41 Open executive programmes 49 Custom executive programmes 57 Which MBA? © The Economist Intelligence Unit Limited 2006 Extracted from the 18th edition of Which MBA? Which skills will tomorrow’s leader need? Since any form of executive education is about improving your skill set to make you either more attractive to recruiters or more likely to win promotion, it is first worth taking a look at which skills recruiters say they are looking for. Here we examine the results of a survey of a group of senior executives to find out what they are looking for in tomorrow’s leaders. They were asked which skills they hoped to find in tal- ented young managers and how these were likely to change over time; which skills were in short supply; which methods of management education (for example, an MBA or short execu- tive education courses) would most effectively meet those needs; which providers of man- agement education were most important in developing managers; and many other questions. By studying the results of the survey—and comparing them with similar surveys conducted in 2004 and 2005—you will get an idea of what companies, and therefore employers or recruiters, are looking for in their managers and which providers of management education can best supply this. Although the survey reveals complex and sophisticated thinking about the use and value of management education, one thing is clear: there is a greater determination among the exec- utives surveyed to use it to train their best employees. Over the three years the survey has been conducted, the percentage of executives saying they will rely on executive education more over the next five years has risen from 35% to 58%. Those expecting no change in their use of executive education have declined from 59% to 32% . Over the next five years, do you expect your company will rely less, or more, on executive education (including MBAs) to train its best employees? (%) 2004 2005 2006 More 35 47 58 No change 59 41 32 Less 5 12 9 Only 8% of the executives surveyed believed that managers can develop all the skills they need through experience, and that training has value only as an employee benefit. The num- ber saying that management education is critical in building the knowledge and skills of managers has remained fairly consistent at 31% (30% and 34% in 2005 and 2004 respective- ly.) Overall, the executives generally believe—as they did in previous years—that experience can provide some of the qualities they are seeking but that management education has a role in topping these up. In other words, the consensus seems to be that an MBA does not make the manager. Employers are looking primarily for someone with the right personal qualities and see education as a way of bridging any skills gap. Which MBA? © The Economist Intelligence Unit Limited 2006 7 Extracted from the 18th edition of Which MBA? Which skills will tomorrow’s leader need? What role does management education and training play in developing your company's best talent? (%) 2004 2005 2006 A manager can develop some of the skills he needs through experience, 27 29 31 and the rest can be developed through education and training Management education and training is critical in 34 30 31 building the knowledge and skills of managers A manager can develop most of the skills he needs through experience, 28 37 30 and the gaps can be plugged through education and training A manager can develop all of the skills he needs through experience, 10 3 8 and management education and training is useful only because staff perceive it as a benefit As for who is responsible for equipping a manager with those skills, it is clear that most exec- utives (68%) think that the firm and the individual share equal responsibility (though this is a slightly lower percentage than in 2004 and 2005). Only 7% thought the company held the primary responsibility and 25% said it was mainly something the manager himself or herself had to take responsibility for. Who is more responsible for equipping a manager with necessary skills? (%) 2004 2005 2006 Equal responsibility 71 73 68 The manager himself or herself 22 21 25 The company 7 6 7 So what are the skills these executives believe that young managers must have? Top of the list, perhaps not surprisingly, is honesty and integrity, which is given a rating of 87%, largely in line with the results of the previous two years. Next come communication skills (84%) and people skills (82%), again showing little change on 2004 and 2005. The corporate world seems to be delivering a consistent message: they want their managers to excel in the soft skills, particularly leadership, rather than the hard- er-edged technical and financial areas (perhaps because they assume managers will already be skilled in these). A good understanding of technology and financial knowledge, for exam- ple, is rated rather low at 64% and 57% respectively (virtually unchanged on previous years). Furthermore, as in earlier surveys, previous managerial experience (54%) and management education (51%) are not rated especially highly. Which MBA? © The Economist Intelligence Unit Limited 2006 9 Extracted from the 18th edition of Which MBA? Which skills will tomorrow’s leader need? Which characteristics does your company currently look for in its most talented young managers? (importance rating, %) 2004 2005 2006 Honesty and integrity 86 82 87 Communication skills 80 81 84 Excellent people skills 81 80 82 Innovativeness/openness to new ideas 78 77 78 Strategic vision 75 70 73 International knowledge/the ability to manage across cultures 63 67 69 Deep knowledge of market needs and operations 71 66 68 A good understanding of technology 60 61 64 Dealmaking