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Course with employment: "The profession of a Methodologist from scratch to PRO"
Find out moreIn this article, you will get acquainted with important information about the topic, which will help you better understand the subject of discussion. We'll cover the main aspects, key points, and helpful tips to dive deeper into the topic. Read on to gain valuable knowledge and recommendations that may be useful in your practice.
- How MBA programs overcame the crisis of uncertainty;
- What are digital campuses;
- How the MBA market has changed due to the pandemic;
- Adapting an MBA: Digitalization and Hybrid Learning.
In recent years, there has been a decline in demand for MBA education, especially in the United States. The number of annual applications for training has been declining, which has led to the closure of some programs at business schools, such as the University of Illinois. Despite expectations that the pandemic and the economic crisis would negatively impact traditional and high-cost business education, the situation has changed. Today, MBA education is experiencing a new phase of development, adapting to the challenges posed by the pandemic while maintaining its core principles and values.
The Pandemic and the Crisis of Uncertainty
In the spring of 2020, the world faced the coronavirus epidemic, which swept country after country, leaving in its wake uncertainty and fear. This situation negatively impacted all areas of life, including the economy. Business schools offering MBA programs faced a serious dilemma. With borders closed, trade ties disrupted, and the economy in decline, they needed to quickly adapt to the new conditions. The main challenge was to rethink educational programs, which traditionally rely on personal interaction, the exchange of experiences, and the establishment of professional contacts. The pandemic has necessitated the introduction of online learning formats, which has become a key factor in continuing the educational process and preserving the value of an MBA education.
The MBA program is distinguished by its interactive learning process, notes Sergey Myasoedov, Vice Rector of RANEPA and Director of the Institute of Business and Business Administration. Students in these courses have practical experience in various industries, making the training more rich and relevant. The role of the instructor-moderator is to present students with real-world problems that they can solve using their own experience. During the lesson, the instructor summarizes the solutions obtained, creating an effective and productive learning space. Although this approach is possible in an online format, it requires significant effort and often does not achieve the necessary quality of interaction.
Vyacheslav Belobzhetsky, Head of the MBA "Strategic Logistics" program at MIRBIS, shares this opinion. He cites the "What? Where? " program as an example. When?, where participants are given just one minute to answer the question. Experts, sitting in front of their laptop screens, raise their hands to express their opinions. However, according to the expert, they are unlikely to meet this time limit. This highlights the difficulty of making decisions under time constraints, which is an important aspect in logistics and management. The transition to distance learning has become a hot topic for business schools, as confirmed by a May study by the Association of Schools of Business (AACSB). Of 227 institutions participating in the survey, only 31% decided to switch completely to distance learning. The remaining schools are either hesitant or considering changing the start date of the academic process. This situation highlights the difficulty of choosing a learning format in the face of modern challenges. A number of universities, including leading ones, experienced significant chaos. Victoria Susakova, Director of Eastern Europe and Central Asia in the International Development Department at IE Business School, shares examples of when the educational process was suspended for a month, leaving students in the dark. Such situations highlight the need for improved educational management and greater transparency at universities.
The pandemic has brought significant uncertainty to the education sector, and business schools offering courses costing tens and hundreds of thousands of dollars have come under pressure. In this environment, those institutions that had long ago adopted distance learning formats have gained an advantage. They were able to quickly adapt to the new reality, providing students with a high-quality educational process online. This demonstrated the importance of flexibility and innovation in education, making them more competitive in the market.
Professor Larisa Kartashova of the Plekhanov Russian University of Economics asserts that in cases where flexible blended formats were used and programs were implemented by qualified specialists, the quality of education did not decline. She emphasizes that teamwork and interaction between participants remained high during the pandemic. This demonstrates the importance of professionalism and collaboration in the educational environment.
Victoria Susakova supports this opinion. According to her, the Spanish business school IE has been using a blended learning format since the early 2000s, combining online and offline classes. When the pandemic began, the school simply had to adapt and scale existing processes for all seven thousand students in the undergraduate, graduate, and MBA programs.
Victoria is confident that the transition to distance learning at their school occurred without any loss of quality. This was made possible thanks to the experience of faculty accustomed to working online, as well as the school's well-developed information infrastructure.
A wow room—a specialized room for online classes—has been operating on our campus for many years. It is equipped with a large screen and all the necessary functionality, allowing teachers to easily divide the class into teams or pairs, create special meeting rooms, and utilize multimedia capabilities. During the pandemic, we developed wow room in a pocket software, which can be installed on a regular computer so professors can conduct lectures from home.
Some business schools had to resort to using programs like Zoom and other ready-made solutions to transition to an online format. However, this experience was not always successful. Vyacheslav Belobzhetsky notes that there were no serious glitches, but the situation led to some confusion. At that time, information technology did not fully meet the requirements. Despite the widespread adoption of Zoom, the platform was not ready for such a large number of users.
"The unique feature of the MBA is that knowledge is formed directly in the classroom," emphasizes Sergey Myasoedov, Vice Rector of RANEPA and Director of the Institute of Business and Business Administration. "These programs are attended by professionals with practical experience from various industries. The instructor-moderator sets problems for them, which the participants solve based on their own experience. At the end of the lesson, the instructor summarizes the solutions and ideas learned. While this approach is possible online, its implementation is significantly more complex, which could negatively impact the quality of education."
Many universities, including leading ones, experienced chaos. Victoria Susakova, Director of Eastern Europe and Central Asia in the Department of International Development at IE Business School, notes cases where the educational process was suspended for a month, and no one could figure out the situation. This underscores the importance of effective management and organization of the educational process in an unstable environment.
Professor Larisa Kartashova of the Plekhanov Russian University of Economics notes that in cases where flexible blended formats were used and professionals were engaged in program implementation, quality did not decline. She emphasizes that even during the pandemic, interaction and teamwork remained high. This demonstrates the importance of professionalism and effective communication in the educational process.
Our campus has had a wow room—a unique room for online classes—for many years. It is equipped with a large screen and all the necessary functionality, allowing the instructor to easily divide the class into teams or pairs, create special meeting rooms, and use multimedia capabilities. During the pandemic, we developed wow room in a pocket software, which can be installed on a regular computer, allowing professors to conduct lectures from home. This approach provides flexibility and convenience in teaching while maintaining the high quality of the educational process.
Initial reactions to distance learning, digital campuses, and class rescheduling
A Bloomberg Businessweek study clearly demonstrates the difficulties of the transition to distance learning. In the summer of 2020, the magazine surveyed 3,532 students from 95 business schools and found that not all students were satisfied with the changes to their MBA programs. At institutions where tuition exceeded $70,000 per year, 54% of students expressed regret about their investment. This underscores the importance of assessing the quality of educational services in a distance learning environment.
The difference in cost between online and in-person programs explains some of the student dissatisfaction, but it is not the only reason. Many students noted the difficulties professors encountered during the transition to an online format. A significant factor that also caused dissatisfaction was the lack of face-to-face interaction with classmates. This personal interaction and informal connections play a significant role in networking, which is one of the key benefits of earning an MBA. Students seek deeper connections and the exchange of experiences, which is difficult to achieve in a virtual environment.
Sergey Myasoedov emphasizes that each of us goes through life alongside those with whom we studied in school or university. The MBA program provides successful adults with a unique opportunity to establish dozens of new contacts with similarly successful colleagues from different regions of the country. This is significantly more difficult to do online. In-person interaction, the opportunity to look each other in the eye, share a glass of wine, and spend time at a mini-corporate party create indispensable conditions for forming strong and useful connections. All of this is possible within two years of the MBA program.
Some business schools have begun to employ innovative approaches to addressing pressing educational challenges. For example, France's NEOMA has developed a fully virtual university campus, reminiscent of a simplified version of The Sims. In this virtual space, each character represents a real student or employee of the business school, and every interaction can have a real impact on the students' lives and careers. This approach not only creates a unique educational environment but also promotes active student engagement, an essential aspect of modern education.
Other business schools have begun using platforms like Zoom and Slack to organize collaborative events, including sports activities, concerts, cooking classes, and community clubs. Some institutions, such as Alliance Manchester and the Institute of Business and Business Administration at RANEPA, have decided to move classes online to preserve the benefits of full-time programs for their students. Students who chose the traditional MBA program, rather than the online one, are eager for interaction and collaborative knowledge creation in the classroom. They expressed their willingness to wait for classes to resume. We suspended all traditional programs at the end of March last year and only resumed teaching at the end of July. Over the course of three months, we actively made up for lost time and are now continuing teaching at our usual pace. Sergey Myasoedov emphasized the importance of face-to-face communication and interaction in the educational process for students. Sergey Myasoedov notes that each of us communicates throughout our lives with those with whom we studied at school or university. The MBA program provides a unique opportunity for successful adults to establish new connections with colleagues from different regions of the country. This is difficult to do online: it is important to see each other in person, share a glass of wine, and attend a mini-corporate event. All these interactions occur over the two years of the MBA program. Establishing such connections contributes to the development of a professional network and can bring significant career benefits.
Students who chose a traditional, rather than online, MBA program seek face-to-face interactions and the collaborative knowledge creation process in the classroom. They expressed a willingness to wait until classes resume. Since the suspension of traditional programs at the end of March last year, classes did not resume until the end of July. Over the next three months, the educational process intensified, and now we have returned to the usual rhythm of learning, noted Sergey Myasoedov.
How the MBA market responded to the pandemic
Business schools successfully coped with the challenges of the pandemic, despite all the difficulties they faced. The AMBA & BGA study shows that the majority of students perceive their MBA experience positively. In particular, 25% of respondents rated the teaching as "excellent," and 43% as "very good." This demonstrates the high quality of education and the adaptability of business schools to the new conditions. Business schools have successfully adapted to the pandemic, as confirmed by the annual GMAC study conducted between July and September 2020. According to the study, 67% of MBA programs recorded an increase in student applications in 2020. While the overall number of applications increased by 2.4%, in 2019, before the pandemic had begun, there was a decrease of more than 3%. These results demonstrate the resilience and attractiveness of business education even in the face of global crises. The GMAC study revealed not only an increase in applications but also other important trends. In 2020, business schools demonstrated high flexibility in their student engagement. They extended application deadlines and scholarship fund sizes, extended payment deadlines, and offered deferred admission options, allowing students to transfer their studies to one or two courses. Furthermore, many institutions lowered admission requirements, making education more accessible to a wider audience.
A number of leading business schools have seen their admissions requirements lowered. Some have even waived the requirement for the GMAT, a standardized test that assesses academic aptitude in business education. This decision has encouraged many candidates to begin their studies immediately. Victoria Susakova emphasizes that such changes in requirements open up new opportunities for students and contribute to an increase in the number of those applying to prestigious educational institutions.
The increased interest in MBA programs is due to several factors, GMAC experts noted. One of the main reasons was the closure of borders, which led to an increase in the number of local students at business schools. In particular, Canadian business schools reported that 90% of full-time programs saw an increase in the number of local students. Furthermore, the economic crisis has forced many to reconsider their career paths and invest in education to improve their competitiveness in the changing labor market.
During economic crises, interest in education increases. For some, this is a chance to weather difficult times, while for others, it's a desire to increase their attractiveness to employers. This is especially true for executive-level programs designed for people in high-ranking positions. With business activity down, these professionals have the opportunity to devote time to studying and developing their skills. This creates favorable conditions for personal and professional growth, which can subsequently positively impact career prospects.
According to her, the number of applications to IE Business School has continued to grow since the pandemic, a trend observed worldwide, including in Europe and Russia. The growing interest in business education in the changing economic climate confirms the relevance and demand for programs offered by institutions like IE.
Not all MBA programs were equally affected by the pandemic. According to a GMAC study, 8% of programs reported a significant decrease in applications of more than 20%, while 6% of programs experienced a drop in the range of 11-20%. This indicates that the pandemic has had a varied impact on various educational institutions and their attractiveness to potential students.
During the crisis, differentiation in the educational services market has increased, notes Larisa Kartashova. Business schools unable to adapt to high-quality blended learning are losing ground and leaving the market. At the same time, strong players are strengthening their positions by developing the digital and personal competencies of their faculty, as well as implementing online technologies that ensure a high level of educational quality. This leads to an increased demand for quality education, and clients are beginning to choose only those institutions that offer modern and effective educational solutions.
According to a representative of IE Business School, the number of applications for study at the institution has continued to grow since the beginning of the pandemic. This trend is observed not only in Spain but throughout the world, including Europe and Russia. Growing interest in business education in a changing economy underscores the importance of acquiring new knowledge and skills for a successful career in the modern world.
During the crisis, the market has seen increased differentiation, notes Larisa Kartashova. Business schools that failed to adapt to high-quality blended learning were unable to compete and left the market. At the same time, leading educational institutions have strengthened their positions by focusing on developing the digital and personal competencies of their faculty, as well as using online technologies to ensure high-quality learning.
Modern education inevitably includes elements of distance learning and e-learning resources. Online learning offers flexibility, independence, and the ability to manage time more effectively. At the same time, offline learning remains important for creating networking interactions and maintaining a communicative atmosphere. The integration of online and offline teaching methods allows us to achieve optimal results in the educational process, taking into account the needs and preferences of students.
