In a fast-changing environment, speed and entrepreneurship is something business leaders have to learn and hone continually… and Business Schools have to embrace.
By Andrew Main Wilson, Chief Executive of the Association of MBAs & Business Graduates Association (AMBA & BGA)
I hope all of you are keeping safe and well.
If 2020 has taught us anything, it is that business continuity and success depends on leaders who know what they want to achieve and understand how they can make a difference in the world.
As the global labour market becomes increasingly heated in conditions that remain volatile and uncertain, businesses are crying out for a new breed of leader to future-proof economies and innovate through complexity.
Just before he left the role of CEO at FMCG multinational, Unilever, I interviewed Paul Polman on precisely this topic and he told me that the world needs ‘different leaders’ – those who have a high level of awareness about what’s going on in the world, a high level of engagement in wanting to do something about it, and who operate with humility and humanity.
In saying that, this new breed of leader also needs people skills, as well as focus – and this presents a challenge for Business Schools in developing these game-changing leaders.
New paradigms of success
Earlier this year, my colleague and Chair of the AMBA & BGA International Management Board, Professor Bodo Schlegelmilch, outlined his thoughts on some of the disruption affecting business education.
He explained that the real competition for many Schools comes from drastically different business models, for example e-learning platforms.
These include networks of organisations that team up to design and distribute educational content. International consulting companies are also expanding their digital learning offerings. While these companies do not (yet) grant degrees, they do typically offer a certificate on completion of their courses. It is arguable whether a certificate from a prestigious consulting company, such as McKinsey or PwC, has more currency than a degree from a relatively unknown university.
Other innovations, such as adaptive learning and AI, are already emerging. Collectively, these rapid technological changes indicate the end of ‘business as usual’. Traditional Business Schools cannot continue without embracing fundamental changes in technology.
Demand for sustainability
The increasing demand for sustainable businesses and products will also have a profound influence on Business Schools.
Sustainability calls for the balancing of three fundamental dimensions: environmental protection, societal progress, and economic growth. While Business School teaching has traditionally focused on economic growth, the other two dimensions are increasingly moving to centre stage.
The changing student demographic
Research from AMBA & BGA shows that one of the reasons people are choosing to complete MBAs, is to take part in more ‘worthwhile’ things and make a difference – the motivation is not purely financial.
The leaders of the future will need to know how to manage within a complex corporation, but equally, they will need the speed of thought, innovation and creativity to operate like the owner of a startup. Entrepreneurial flair should be in the DNA of a leader and this is something that is all too often is forgotten.
In a fast-changing environment, speed and entrepreneurship is something business leaders have to learn and hone continually… and Business Schools have to embrace.
The future of Business Schools
Business Schools need to go beyond cosmetic adjustments and consider fundamental changes to their models. This starts with a realistic assessment of their resources, capabilities, and, more importantly, purpose.
The role of AMBA & BGA
Spearheading excellence and trailblazing innovation, for more than 50 years the Association of MBAs and Business Graduates Association (AMBA & BGA) is the impartial authority on postgraduate management education.
As such, the accreditation criteria of both AMBA & BGA are focused on impact: the difference that Business Schools are making to students’ career trajectories, economies, societies and the wider world. Our accreditation criteria have evolved over time to incorporate digital infrastructure, celebrate innovation, and respect agility and flexibility. An accredited Business School will have proven itself to be a leader in Education 4.0.
AMBA accreditation is the global standard for all MBA, DBA and master’s degrees, currently accrediting programmes from the top 2% of Business Schools in more than 75 countries.
We are the only professional membership association that connects MBA students and graduates, accredited Business Schools and MBA employers throughout the world. Through our members, AMBA is building an international force for good, championing best practice, responsible management and sustainability.
Further, our Research and Insight Centre explores global trends in the business education sector.
Research carried out earlier this year polling 450 Business School leaders from across our global network, found that 68% of decision makers at Business Schools agree that Schools within the AMBA network give graduates a significant competitive advantage in the job market; and 77% believe that AMBA accreditation is a good investment for a Business School.
We also asked more than 1,000 employers of MBA graduates about their priorities when recruiting from Business Schools: 87% rated accreditation of an MBA important when recruiting MBA graduates.
Nine out of 10 (90%) of these employers said they were favourable towards AMBA; and just under two thirds (64%) said it was important to them that the top management job applicants for MBA-specific roles come from Business Schools with accreditation from AMBA.
To grow the AMBA & BGA family, in 2019 we formally launched the Business Graduates Association (BGA), which is an international membership and accreditation body of world-leading and high-potential Business Schools that share a commitment for responsible management practices, lifelong learning, and positive impact on their students, communities and the economy as a whole. Whereas AMBA accredits postgraduate business programmes, BGA is an accreditation and membership body for entire Business Schools.
As such, BGA offers quality assurance services to Business Schools, aimed at continuous improvement and positive impact to increase a Business School’s credibility and influence; consultation and mentorship services to Business Schools to improve their activities. BGA student and graduate membership, includes networking events worldwide, and professional development tools, a Career Development Centre; and award-winning content on responsible management, professional and personal growth.
Conclusion
The MBA has always been respected – and always will be – but the approach to taking a business qualification has evolved. While the nature of post-recession economics makes future gazing impossible, the MBA provides skills required not just by large corporates, but by charities, SMEs and startups, where there is an ongoing need for better trained and qualified managers in the marketplace. Focusing on the strength of collaboration within the AMBA & BGA family – as an international community with shared goals – we are gaining a better understanding of the seemingly insurmountable challenges we’re facing as an industry but, more importantly, I am encouraged and confident that, as a powerful network, we are in great shape to address them.