Harvard Business School Dean Nitin Nohria admits the traditional elite U.S. MBA faces problems.
1. MBAs are no longer essential for a career at Goldman Sachs or McKinsey & Co.
2. $100,000 is seen as expensive.
3. The rise of Asian business schools poses another challenge. Many Asian students and successful entrepreneurs have opted to stay closer to home to hone their skills. Business schools have mushroomed in India and China, offering courses and networking opportunities that are more relevant to their home markets.
4. Top U.S. business schools have responded by introducing shorter and more specific business programs, and adding international business cases for study.
Harvard's Strategy:
a) Expand in Asia. Harvard opened its first research center in Hong Kong 15 years ago. About 10% of our business cases then were international. Now it has eight research centers around the world, including Mumbai, Tokyo and Shanghai, and 60% of our cases are global cases.
b) Attract Asian donors: aim to get 100 people who can give $1 million each to support the international activities of the school. I want to build a broad base. My dream will be 30%-40% of that group will be from Asia.
c) Tap into the explosive Asian market. Japanese students used to be 30 or 40, now down to to four to five.
As for Greater China, our mix has shifted to mainland. Now a quarter of the students are from Hong Kong, and three quarters from China. It used to be the vast majority of Chinese students were from Hong Kong.
d) Increase financial aid. Tuition has been going up by 4%, and HBS is increasing financial aid, at a rate of almost 5%-7%. Almost 28% of HBS tuition is now given away as scholarship. Last year 50% of students receive some forms of financial aid. Twenty years ago it was almost impossible to imagine.
e) Demand for 2-year MBA programs has declined 20% from year 2000.
For the full article see WSJ
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