How to Measure Satisfaction

Forbes heard back from 5,000 business school alumni who graduated in 2006. The survey sent out questioned the alumni on whether they were satisfied with their MBA education, their current job, and how well they were prepared by their degree (compared to other business school alumni).

So What Was the Most Satisfying MBA Program?

It turns out the most satisfying MBA school (overall) is not the one that has the highest return on investment (Harvard). It is Stanford Graduate School of Business, and many claim the high satisfaction rates are because Stanford prepares its business school grads as entrepreneurs and business leaders. So although, like Harvard, the students start off in big companies, many then branch out into their own companies.

The second-most satisfied MBA graduates are those from the University of Virginia’s Darden School of Business. The school was top in MBA education and preparedness measurements (it was 14 on the job satisfaction list – not too shabby, either). It is likely that the school sat so high on the lists is because it thoroughly prepared its students for general management positions – since 29 percent of its graduates took that career track. That is more than any other top-tier business school.

The highest school on the job satisfaction lists is alumni from Michigan State University’s Broad College of Business. It is also one of the smaller schools on the lists. In 2010, 48 percent of the school’s graduates were actually placed operations and logistics jobs. That is six times the average placement rates compared to other schools.

Check out the full list of the most satisfying schools overall at Forbes.com.

However, the high costs of top-tier school online MBAs may not be justified, as the online program graduates are unlikely to have as high a pay raise as those who graduated from the full-time program.

In Fact, Online MBA Graduates’ Raises are a Lot Less

Top-ranked Indiana University’s Kelley School of Business has had an online MBA since 1999. Many are looking to the results of the program now in order to make predictions for the new, high-costing MBA programs. Many are wondering if the online MBA programs will really be worth it.

It turns out they are not as worth it as the full-time programs for its graduates, at least when looking at the statistics. Online MBAs typically get pay-raises of about 18,700 dollars. Their average salaries increase from about 70,400 dollars to 89,100 dollars. Also, the percentage of those who make 120,000 dollars or more jumped from 2 percent to 26 percent after graduating with their online MBA.

However, the graduates from the online program had a salary increase of 37,000 dollars after they finished their MBA, to 89,144. The dollar increase was nearly double that of the online graduates.

Why You Shouldn’t Read Too Much Into the Lower Pay-Raises for the Online MBA Graduates

The problem with statistics is that they can be taken out of context. Admittedly, the salary increases for the full-time students was double that of those who took the online program – however neither did their salaries before the program start quite as high. The kinds of students in the online MBA program had vastly more experience (a little less than 9 years of experience, on average) and were already making more money (2 percent of the online MBA graduates before the program already were making a salary of 120,000 dollars) than the students in the full-time MBA programs. They also were coming into the online MBA from a different perspective. The full-time MBA students were looking for a career change – the online MBA students a career boost.

And it got them to the same place. One average, for both groups, an MBA landed their average salaries at almost the exact same amount. Both MBA graduates’ salaries averaged out at about 89,100 dollars, with a miniscule 44 dollar difference.

So maybe its about right, the cost of the MBA, in general. Be it online or offline – ultimately a top-tier school’s MBA is worth just about 90,000 dollars.

Read about the differences in pay raises for online degrees in Bloomberg Businessweek.

American Business Schools Lack Cross-Cultural Teaching

However, many American schools have been slow to introduce cross-cultural courses and business journals have a shockingly low percentage of material that is non-American-centered. In 2010 only 7 percent of research dealt with cross-border issues (as measured in the top 20 management journals). Also, the case-studies used in American business schools used to teach students how to deal with possible business issues typically include few cross-border scenarios.

International MBA Programs Pick Up the Slack

International Schools are now building their MBA programs in order to be more globally-minded. They are not only doing this through their curriculum offerings but also by embracing the international and versatile potential of technology.

There is expected to be a huge increase in international, and American, students’ interest in blended online programs that can be accessed and taken anywhere in the world, especially online EMBAs (Executive MBAs). Students do not need to leave their careers in order to enter the programs and the online MBA programs are flexible and can be taken on the go – aligning well with an internationally-minded student looking to rise up the ranks in a multinational company.

However, students are not quite ready to make the leap into an all-digital MBA program – so are opting for a blended one. A blended online MBA program basically combines face-to-face learning as well with online coursework, which allows the best of both worlds. It also overcomes the worry that the online programs are be too isolating and will fall short when it comes to teaching students about teamwork. Overcoming these concerns is essential for an EMBA since the students who take it are being groomed for the upper echelons of business-dom – or in other words the leaders in business in the near future.

The IE Program: A Case Study of an Online MBA that Works

The new IE online EMBA program is a leader in online business education. According to the schools’ website the blended program, “Offer[s] part face-to-face, part online interactive learning. With face-to-face periods in Spain, China, USA and Brazil. [T]his program offers a truly global window on the business world, adding important components on Asian markets, sustainable development and the liberal arts… [In the program] participants are able to follow the program regardless of their geographic location, travel schedules and work commitments.”

The program, even in its quick overview, can be seen as fundamentally different from a traditional program. It is clearly geared towards international executives who need to be on the move and cannot take time out for two more years of school. Additionally, the program actually has its face-to-face meetings in a variety of countries that are all developing or developed economies. The school attracts business men and women from all over the world and has them interacting in multiple, diverse environments which is likely going to increasingly become the norm of the future.

Learn more about the IE Global Online EMBA or how interest in online MBAs is rising.

Job Interview Tips

1. Before all else, describe the best qualities of the MBA program. Were your professors experts in their field? Did you have weekly one-on-one sessions with an adviser? Did you interact with classmates from all over the world? Set your online program apart from the others. If there was a unique, positive quality that your online program celebrated other than “it had flexible hours,” make sure to highlight it for the recruiter. If you are still unsure what to spotlight think about the most useful skill you attained from the online program and what quality of the program nurtured it.
2. Assure the recruiter that your degree is accredited. If you don’t know already, look up what organizations accredited your program. Make sure to assure the interviewer that the program was recognized by the state and/or the federal government for its quality. You may even want to go one step further and research whether or not your program has ever won any awards. If it has, make sure to mention it in the interview.
3. Explain why you decided on an online program. If you decided on the online program because it allowed you to travel in your previous company, or you chose it in order to stay in your previous position while keeping up-to-date in the most recent innovations in your industry, tell the recruiter. Now you suddenly sound worldly, a loyal employee, and a proactive person. The one reason you may want to omit is if you chose it because it was inexpensive.
4. Describe what technologies you learned. It is important in the current business world to stay technologically savvy as the world becomes more digital. If your program required you to use any special, high-tech conferencing communicative tools or even just made you very comfortable with new software or digital technology, describing what you learned will set you apart from the pack.
5. Emphasize any teamwork or team projects you did in the program. A major worry for many employers is whether or not a employee will mesh well with its current team, and whether or not an online program can teach the social skills needed in the workplace. If you had any team projects or worked extensively with classmates and/or professors then describe them.

As a final piece of advice, keep in mind not all interviewers are as knowledgeable in online programs are you are, and they may just honestly want to know more about your program. In which case explain the advantages of your online program clearly, and you will actually stand out from the crowd – it may even give you an edge.

Admittedly, things are still not bright and shiny for all MBA degree holders. Employers in general have the upper hand and can be a choosy when they are being flooded with thousands of applicants competing for the same position.

So the question arises: is an online MBA worth it? When traditional MBA program applicants are competing alongside online degree holders, are online business school students at a disadvantage? Unfortunately, the question is ever more pertinent as enrollment in online MBA programs are high, and more prospective students choose the online programs for their flexibility; which allows those enrolled to remain in their current jobs.

Who will Benefit the Most from an Online MBA

The value of an online MBA lies in a number of factors. The most influential is why the prospective online MBA candidate wants the degree, and what kind of experience they already have. The prospective online MBA student interested in climbing the ladder at work and already has a good deal of relevant experience is going to profit from the online degree the most. They can get the degree’s full value by remaining in their current company while acquiring new skills that will be necessary for a promotion. However, business school students who are unemployed and are looking for high-level connections to enter a new company will probably be disappointed with their online MBA degree program (depending on the program) as their application will be up against MBA graduates with traditional degrees. Additionally, although high-level connections can be made in online programs, they are more easily made in the brick-and-mortar classroom.

A Recovering Job Market Bodes Well for the Value of an Online MBA

The rise in employment for MBA candidates is also a good sign, because as the job market improves so will the chances of MBA degrees holders in finding a job (alongside graduates of traditional institutions). With a healthier job market recruiters are not as apt to be looking for any reason to cut an applicant – such as a degree from an online, as opposed to traditional, institution.

It must be conceded that the growth in employment rates are not equally distributed for all sectors, however. Job growth for the government, for technological industries, healthcare and petroleum industries are healthy – but the financial sector is still having difficulty recovering.

Today, the business-sphere is not what it used to be. In the current economic climate jobs for corporate industries are becoming scarcer, lower-paying and requiring longer hours and with little security to boot. It is causing many to reconsider the skills they want to gain in the process of studying for their MBA degree. Do they want to learn how to do finances for a big company that might cut them the minute their salaries cut into the bottom line? Or do they go the route of becoming their own bosses?

Entrepreneurs Choose Flexibility Over Tradition

For many, it is the later, and the tool of choice is the online MBA program. The online MBA allows a flexibility that a residential course does not. Students can plan and work out the glitches of their business idea full-time as they garner the logistical skills that they need in order to do it. Admittedly, the majority of current entrepreneurial training offerings are only recently instituted for most programs, but their high demand is making them become part of the standard curriculum.

One school, the University of Liverpool, has seen the confluence of the online MBA and rising entrepreneurial spirit first hand. Over one-third of its online student body are pursuing MBAs and entrepreneurship classes are high in demand, causing brand new courses to be added to the online program in social enterprise, entrepreneurial work in emerging markets, and general entrepreneurship. Other online MBA programs, such as the one offered by Warwick University, have also seen increases in enrollment – most likely caused by interest in the MBA program’s final project; in which students develop their own business plan.

In fact, a recent survey by the Association of Business Schools found that 30 percent of those surveyed thought that entrepreneurship is one of the five most important topics of the business school curriculum; but surprisingly, it was the first time entrepreneurship showed up in the top five topics at all. It seems the entrepreneurial spirit seems to be catching, holding a larger part in the minds of those interested in the world of business.

Read more about the new interest in online MBA programs and entrepreneurship in The Guardian.

This brings into question business ethics, and is the story that most Americans feel they are all too familiar with after the 2008 stock market crash and the subsequent Great Recession. While the blue-collar worker is getting laid off or suffering pay cuts he sees the head honchos in his company get million-dollar paychecks. According to many, the downfall of the economy can be traced back to these big-time business tycoons quarreling over salaries rather than thinking about the good of the country and their employees.

Business Ethics Reemphasized in Business Schools

This has many business schools taking heat over whether their lack of instruction in business ethics is a major flaw in the MBA curriculum, and the business schools are responding. According to a survey by Aspen Institute’s Beyond Grey Pinstripes, the number of business schools offering courses in ethics and reemphasizing ethics in their curriculum went from 34 percent to 79 percent in ten years, from 2001 and 2011. Some remain suspicious of the schools, unsure of the intentions of the changes.

The change, however, is significant enough to indicate a change in attitude. The Wall Street Journal reported that Harvard business school decided to reemphasize ethics in order to revamp its image as a place only for networking and money-hungry ambitions, and other schools are following their lead.

Will This Fix Business?

The real question is whether or not this will actually “fix” the upper echelons of corporate business, and in doing so, “fix” the way our economy is run. Most admit that teaching more ethics in business school is not the end-all and be-all solution to the economic crisis. However, educating business students on ethics is certainly a step in the right direction. Additionally, if the teaching methodology of ethics undergoes changes, such as making it into a more practical, rather than philosophical, discussion, students will get even more out of the study.

Read more in Bloomberg Businessweek, The Washington Post, and US News and World Report.

Florida Tech Offers Fast “Mini” MBA Program

Florida Tech, although a technical institute, has previously offered MBA degrees in fields that relate to the IT industry; such as information technology management and internet marketing alongside more traditional MBA programs. However, now it just launched a “mini” MBA program in which students can enroll in online classes that are credit earning, which means after the program they can be applied to a traditional MBA if they decide to do so. It also means that the courses are eligible for financial aid.

The course is also loosely structured, so those currently in jobs will be able to keep their employment while working towards their degree – a major plus for working professionals. They also can finish the degree in only eight months.

A Boon for Tech Whizzes

For the IT professionals of America, this could be a highly attractive program. As technology companies boom and tech whizzes are being aggressively recruited by technological juggernauts such as Google, Facebook, Apple, and Amazon; to a point where FastCompany entitled the competition the “Great Tech War” and keeps ongoing tabs on the “skirmishes” between these companies.

As these great minds are rising higher and higher on the totem pole, and tech companies are becoming the new powerhouses of American business, IT professionals are getting the chance to begin their careers working on computers and end up in high-ranking management positions. The mini-MBA is the newest step by higher education to cater to these new executives and give them the skills they need when and how they need them.

They also have expanded the number of schools they rank to 40, in order to include some second tier schools that were previously unranked. If you are looking for a top-notch, widely well-recognized EMBA program with consistent positive reviews, now you can begin the search here.

The Ranking

1. University of Chicago Booth School of Business; Chicago, IL
2. Columbia University; New York City, NY
3. Northwestern University Kellogg School of Management; Chicago, IL
4. IE University’s Business School; Madrid, Spain
5. UCLA Anderson School; Los Angeles, CA
6. University of Michigan, Ross School; Ann Arbor, MI
7. Southern Methodist University Cox School; Dallas, TX
8. University of Southern California Marshall School; Los Angeles, CA
9. University of Pennsylvania Wharton School; Philadelphia, PA
10. Duke University Fuqua School; Durham, NC
11. University of North Carolina Kenan-Flagler School; Chapel Hill, NC
12. IESE; Barcelona, Spain
13. New York University Stern School; New York City, NY
14. Ohio State University Fisher School; Columbus, OH
15. Emory University Giozueta School; Atlanta, GA
16. Thunderbird School of Global Management; Glendale, AZ
17. University of Maryland Smith School; College Park, MD
18. INSEAD; France and Singapore
19. ESADE; Barcelona, Spain
20. Washington University Olin School; St. Louis, MO
21. Cornell University Johnson School; Ithaca, NY
22. University of Georgia Terry School; Atlanta, GA
23. University of Texas McCombs School; Austin, TX
24. Georgetown University McDonough School; Washington, DC
25. London Business School; London, England
26. University of Oxford Saïd School; Oxford, England
27. University of Notre Dame; Notre Dame, IN
28. IMD; Lausanne, Switzerland
29. Queen’s University; Kingston, Ontario, Canada
30. University of Minnesota Carlson School; Minneapolis, MN
31. Pepperdine University Graziadio School; Los Angeles, CA
32. Vanderbilt University Owen School; Nashville, TN
33. University of Utah Eccles School; Salt Lake City, UT
34. University of Western Ontario Ivey School; London, Ontario, Canada
35. Michigan State University Broad School; East Lansing, MI
36. College of William and Mary Mason School; Williamsburg, VA
37. Baylor University Hankamer School; Dallas, TX
38. University of Texas Jindal School; Dallas, TX
39. Fordham University; New York City, NY
40. University of California Merage School; Irvine, CA

Here are a few aspects of the ideal online MBA candidate that you might want to consider, especially if you are unsure whether or not an online program is right for you.

An Ideal Online MBA Candidate…

1. Is self-disciplined. If you are someone who always need an encouraging hand or a motivating presence around than you may not do well in an online program. As most programs generally require the student to plan and complete their work by themselves than you must be able to organize yourself and have enough discipline to set your own goals and complete them.
2. Is self-motivated. The ability to motivate oneself goes along with the ability to discipline yourself. You must be able to get yourself excited and engaged with the material on your own, as the professor can only do so much to motivate you if they are in a different state or time-zone. It is also easy, when at home, to become lazy and distracted. If you find yourself having a lot of difficulty to concentrate at home or on the Internet than online schooling may not be your best option, especially an intensive online MBA degree program.
3. Has strong written communication skills. Most of your communication with your professor and classmates will be through email, forums and instant messaging. If you always had difficulty with expressing yourself in text than an online program is likely going to cause more stress than it is worth. Instead of an online degree, find a program where you can have more face-to-face interaction and communication.
4. Has a go-getter attitude and is not afraid to speak up. If a teacher in a physical classroom is pushing you to ask questions or speak up it is fairly easy to raise your hand in answer their inquiry. However, when online, you must be able take the initiative yourself and make yourself heard when you have a question about the material. It is far easier to fall into the background, and let your classwork do the same, when you are the one who has to seek out the professor.
5. Is comfortable with technology. If you are not comfortable with technology than you will find yourself in trouble when all your assignments, lectures, and discussion are online. If you are comfortable with technology and not afraid to tinker around with it a tad, than an online degree will probably be a happy experience for you.