Wednesday, November 27, 2013

How A Top School Screens MBA Applicants

Niki da Silva sits at the head of a long rectangular table in an ultra-modern glass-walled conference room on the sixth floor of the University of Toronto’s Rotman School of Management. As director of MBA admissions and recruitment, da Silva is the school’s top gatekeeper, the sentry who decides which candidates get in and which get rejected.

Huddled in the room are six other admission officers on her team, each with a red folder placed in front of them on the gleaming white table. Tucked inside each folder is the complete file of an applicant who sorely wants one of the 330 to 350 seats in the next entering class of Rotman’s full-time MBA program.

Now that the round two deadlines for submitting applications is over, it is a ritual that is playing out at business schools all over the world: Admission committees meeting to make hard and often painful choices whether to admit, deny or waitlist tens of thousands of jittery candidates.

MBA APPLICANTS FACE DAUNTING ODDS AT THE WORLD’S BEST SCHOOLS

For those who desire an elite MBA, the odds are daunting. At Stanford University’s Graduate School of Business, the most selective B-school in the U.S., 94 of every 100 applicants will be turned down. Harvard Business School will rebuff nine out of every 10 applicants. Though Rotman’s acceptance rate is much higher, roughly half of the more than 1,200 MBA candidates expected to apply this year will be spurned.

What makes da Silva’s job tougher than most is that she is expected to increase the size of the entering class at Rotman while also increasing the quality of the admits. Last year, she managed to increase the students in the entering class to 313, up from 265 a year earlier, while increasing the class’ median GMAT score 20 points to 680 in one year. The school expects to welcome 400 MBA students by 2016 so that its total enrollment is similar to such schools as Stanford, MIT, New York University’s Stern School and London Business School.

On this brisk, snowy day in January, da Silva’s admission committee will render decisions on seven applicants from all over the world: a pair of software engineers employed by one of India’s most successful global companies, an out-of-work Brit who lost his job in asset trading after his firm was acquired, an ambitious Chinese woman who is employed by a global investment banking firm, a Russian woman with entrepreneurial ambitions who lives in New York City, and two young female Canadians who work in consulting and communications.

SEVEN ROTMAN CANDIDATES ARE EVALUATED BY THE SCHOOL’S ADMISSIONS COMMITTEE

Their GMAT scores range from a low of 620 to a high of 780. They range in age from 24 to 30. And they’ve been educated at a wide variety of undergraduate universities from the London School of Economics to the University of Auckland in New Zealand. They are among the first 300 applicants to the school who have gone through the review process for what will become Rotman’s Class of 2015.

It will be a productive day for the committee: six of the seven applicants will receive good news and three of their files will move forward to a broader committee for a shot at an award from a $2.4 million pool of scholarship money. A 28-year-old software engineer from India with a 710 GMAT will be thrown into the reject pile.

With Rotman’s round two deadline of Jan. 7, applications for the incoming class this year are already up by some 20% over last year. If the upward trend holds, da Silva and her admissions committee will read and review more than 1,400 applications this year. The bulk of the work is done between January and April when the files pour into admission offices.

HE ADMISSIONS SEASON KICKED OFF IN OCTOBER WHEN THE FIRST APPLICATIONS CAME STREAMING IN
But this year’s admissions season actually began in October, when the officers began considering applicants who met Rotman’s round one deadline of Oct. 9th. It won’t end until June 30th, when the school says yes or not to domestic candidates who apply in the fifth and final round on June 1.
Da Silva would be the first to concede that MBA admissions is more an art than a science, with the decisions based on a mix of quick judgments, gut and the raw numbers. She and her colleagues will consider an applicant’s undergraduate grades, GMAT or GRE scores, work history and recommendations.
They also will judge candidates by their responses to two written essay questions:
1)   Discuss your personal and professional development over the past five years and describe how these changes have led you to choose to do your MBA at this time. What are your career goals and how will a Rotman MBA help you to achieve them?
2)   Tell us about a time when you had to overcome an obstacle and describe the outcome.
Da Silva also is piloting this year a new and to some intimidating video component that requires candidates to answer two questions at their computer without any advance preparation. Applicants get 45 seconds to prepare and 90 seconds to answer each question.
DA SILVA IS THE FIRST TO SCREEN EVERY APPLICATION BEFORE MOVING THEM ON
When an application arrives at Rotman, da Silva will see it first for a quick screen that might last only a few minutes. If a GMAT score is woefully low, something in the 500s, or a candidate is too old for a full-time MBA program, in the mid-to-late thirties, da Silva might immediately toss out the file. This is the sorry fate of 5% to 10% of all the applications Rotman receives in any given year.
Otherwise, the file is assigned to one of da Silva’s six assistant admission directors. Collectively, the group has more than a half a century of experience in admissions. Each adcom member then will spend between 15 to 30 minutes reviewing an application before deciding whether to invite a candidate to interview in person or via Skype. Last year, Rotman interviewed 70% of its applicant pool. Once an interview is complete, an admissions officer will assign the applicant a grade (50 is the highest possible score) and recommend that the candidate be admitted, rejected or placed on a waitlist.
Then, the applicant’s profile comes to the full admissions committee, which will meet at least four times for each of the five application deadlines at Rotman—a minimum of 20 times in all during the admissions season, with each session lasting as long as three hours to decide the fate of an applicant.
MEET NIKI DA SILVA: ROTMAN’S DIRECTOR OF ADMISSIONS WHO COULD EASILY BE MISTAKEN FOR AN MBA STUDENT
Da Silva, 34, could easily be mistaken for an MBA student in Rotman’s halls. Yet, in the past eight years, she has evaluated more than 10,000 MBA applicants at the Richard Ivey School of Business at the University of Western Ontario and at Rotman, which she joined in January of last year.
Like most admission directors, she stumbled into the job. She earned an undergraduate degree in business from Ivey in 2003, spent two years teaching undergrads as a pre-business lecturer and then landed a job as manager of MBA recruitment and admissions at the school. “No one grows up wanting to be an admissions officer,” says da Silva. “That would be strange. I just fell into it.”
A petite brunette with blue eyes and shoulder length hair, da Silva is smart, charming and energetic. A perfect smile and an ebullient personality make her a welcoming sentry at the gate of a business school that is clearly on the rise. A former colleague who has endorsed her on LinkedIn puts it this way: “Niki has a unique warmth, kindness and ability to make you feel like the most important person she’ll talk to that day.”
‘WITHIN FOUR MINUTES, I KNEW I HAD TO GET NIKI TO ROTMAN’
So when Kevin Frey, managing director of Rotman’s full-time MBA program, met da Silva, then director of MBA admissions and recruitment at Ivey for three years, he was immediately sold. “Within four minutes, I knew I had to get Niki to Rotman,” says Frey. “She’s articulate, persuasive and passionate about MBA student recruitment and that was obvious within minutes. And she’s fiercely competitive–which in my opinion is a must-have in an admissions director in the current MBA environment. She’s the complete package.”
Da Silva was drawn to the school because of its charismatic and visionary leader, Roger Martin, who has transformed the place into a major player in business education in his 13 years in the job as dean. Martin smartly built on the school’s natural advantages. It is in a world-class city, Canada’s business capital, and is part of the most prestigious university in Canada. But Martin also has made the school’s MBA program truly distinctive, focusing the curriculum on integrative thinking and business design, providing one-on-one executive coaching for every student and raising the money to a new $93 million state-of-the-art building that opened last year.
The goal of admissions, believes da Silva, is to get as clear a picture of the true candidate as possible. “Everyone wants to get the candidate off the script,” she says. “We have to ask the things they’re not prepared to talk about. We screen on a continuous learning orientation, intellectual curiosity and horsepower, coach-ability and self-awareness,” she adds. “To be an Olympic fencer or a professional poker player is a bonus here. That is very Rotman. There is a real celebration of diversity at the school.”
CALLING APPLICANTS WHEN THEY BECOME ADMITS MAKES THE HARD WORK WORTH IT
Her favorite part of the job? Telling applicants they’ve been admitted to the school. “I want to be the very first to tell you you’ve been admitted,” is how that telephone conversation would start. “When you make that call, it’s going to change that person’s life forever. You hear screams on the other end of the phone. Some people cry. I love doing it.”
*            *            *            *
At exactly 10 a.m. of a January day, da Silva has a scheduled admissions interview with a 24-year-old MBA applicant who currently works as a consultant for the Toronto office of a leading global firm. The slender woman with blonde over-the-shoulder hair could have easily walked off the pages of a fashion magazine. Dressed in a black slip dress with an elegantly tailored checked jacket, brown tights and black pumps, she is pretty, graceful and confident. She is wearing tasteful diamond earrings and her makeup is impeccable.
She sits down at a small round table in da Silva’s office where a ten-inch-high stack of red folders lay on the desk. The admission director’s office is painted in stark white, with industrial gray carpeting. There are no paintings, pictures or posters on the walls because da Silva only recently moved into the recently opened wing.
A TRACE OF NERVOUSNESS DURING A CRUCIAL ADMISSIONS INTERVIEW
The consultant is perched on the edge of her seat, bearing just a slight trace of nervousness. A small black notebook is at the ready to jot down a thought or insight.
“I’m already familiar with your application package,” says da Silva, who sits across from the candidate. “The strategy behind our admissions interview is to really use what you’ve already told us as the starting point for a conversation. Typically questions from my end will run 20 to 30 minutes and then I’ll leave time to cover your questions.”
After a knowing nod from the applicant, da Silva delivers her first question:
“Can you walk me through the highlights of your resume and talk a little about not just what you’ve done but why you’ve done it and what you’ve learned?”
“Right now,” the applicant answers, “I’m in strategy consulting and have developed a real focus on an industry. It’s been a great opportunity to advise clients both in the U.S. and Canada and to work with senior-level executives on strategic and operational issues. I have been able to build a brand for myself in the industry, through published research I’ve done and by interacting with clients and through industry events.”
THE QUESTIONS AND THE ANSWERS FLY DURING THE HALF-HOUR INTERVIEW
Back and forth, the questions and the answers fly.
“How did it happen that you started to publish white papers and build a brand?”
“What contributed to your promotion?”
“Are there brands or organizations you would like to work for?”

“What would you want your classmates to say about you at graduation?”
“What is one big piece of constructive feedback that you have taken to heart?”
The applicant answers each question with relative ease. The latter evokes an interesting response. “I’ve been told to maintain a poker face when I hear something I don’t necessarily agree with,” she says.
THE APPLICANT ASKS DA SILVA THE BIG QUESTION FACING THE SCHOOL
In just over 20 minutes, da Silva seems satisfied and asks the candidate if she has any questions for her. The applicant zeroes in on the big question facing the school, demonstrating that she has indeed done her homework on Rotman.
“With the announcement of the dean stepping down, I wonder how that will affect the school’s trajectory and its brand?,” she asks.
Dean Martin announced in October that he would be stepping down at the end of June, a year shy of completing his third term. Da Silva tells the applicant that the dean will remain at the school as a professor and that his upcoming departure has been known for some time. She tells the candidate that he has been dean longer than most—a total of 14 years when two five-year terms are generally the norm—and she says with confidence that the succession will be smooth. The interview ends when da Silva lets the applicant know that she can expect to hear back from Rotman before the first week of March.
Even before the applicant strolls out of da Silva’s office, there’s a feeling that she pretty much aced her interview.
*            *            *            *
Only five hours later, at 3 p.m., da Silva will gather her admissions staffers in a mid-afternoon meeting in room 6024 and recommend the young Canadian woman she interviewed hours earlier for admission.
“Let me give you the background on the young woman I met this morning,” she begins. “The candidate’s name is Karen. (To protect the confidentiality of the applicants, their names have been changed and their employers not identified). She is a consultant who started as a business analyst. She is a graduate from a top Canadian undergraduate business program.”
“Nice,” says one of the other admission officers at the table.
 THE APPLICANTS: A 24-YEAR OLD FEMALE CONSULTANT FROM CANADA WITH A GMAT OF 630
“She has an interesting story,” continues da Silva. “What else can I tell you about her in terms of data? The weak point of her application is a GMAT score of 630. Interestingly, her breakdown is fairly even between verbal and quant, 73rd and 61st percentile. I will tell you why I don’t think it’s an issue or a deal breaker by any stretch of the imagination.
“So the reason she wants to do the MBA is because at her consulting firm she has actually built this really interesting career as an industry specialist which is very atypical for a young consultant. She was promoted after two years onto the consulting side. She is co-authoring white papers and thought leadership on strategy. As I read through her reference letters early this morning, her referees say that ‘she is exceptional.’ A partner lists her in the top 2% of consultants at the firm. And he is very explicit in saying that ‘we would love to have her back anytime and she has had more of an impact on me than any of her peers.’ You really couldn’t see a stronger reference.”
Most of the heads in the room are nodding in agreement.
AN IMPRESSIVE SCORE OF 17 OUT OF A TOP GRADE OF 20 FOR HER INTERVIEW
Da Silva goes on. “Her recommenders point out the same things that were fairly apparent in her interview. I gave her a 17 out of a 20 on her interview.”
At Rotman, admission officials grade candidate interviews on five dimensions, ranging from self-awareness to leadership ability and intellectual curiosity. Some attributes can be graded as high as a five (on a scale of zero to five), while others might be graded no higher than a three.
“She is very impressive,” adds da Silva. “She has some room for growth and development but seems quite coachable. She is aware of some of her areas of weakness. She’s young. She turns 25 this year.”
“She has done well,” affirms Lynda Paterson, an assistant director of admissions, who once was a Montessori teacher before joining Rotman in 2004. “She is very accomplished.”
“For me she is a very strong admit recommendation,” adds da Silva. “I don’t actually see any red flags apart from the GMAT score which is below our average.”
“She hopes to continue in consulting?,” asks Sheldon Dookeran, the only male admissions officer in the room. With the exception of da Silva, Dookeran, a slim young man with a neatly trimmed mustache and beard, has been involved with admissions at Rotman less than anyone else in the room. He joined the team in April of 2011 after eight years of recruiting and admitting undergraduate students at the University of Toronto.
“Good point,” notes da Silva. “She doesn’t want to continue in consulting. I asked what is next for you and she jumped to wanting to transition into retail strategy. She is trying to focus herself and built her brand as a leader in the industry. She said a Lululemon summer internship would be ideal. So she has done her research and her homework.”
Lululemon, a fast growing company based in Canada that makes and retails fashionable yoga and workout clothes, is one of the hot MBA employers on campus right now. In fact, Rotman is the only Canadian school at which Lululemon recruits MBAs.
“So it’s not a huge career switch,” observes Paterson.
“So I didn’t see any issues there,” agrees da Silva. “She came in overall with a 42 on our ratings system. She is incredibly bright and has had fantastic work experience. She is strong in self-management skills and in team skills. She might be someone we want to insure comes to Rotman with a small scholarship. I would like Leigh’s (the head of career development) perspective. She is a definite admit.”
“Do you know if she is considering anywhere else?,” asks Dookeran.
“She didn’t really disclose if she was considering any other place,” says da Silva.
“I have seen her at two fairs and a lot of events,” says Marie-Eve Roy, an assistant director who has been at the school since 2006. “She seems to be very well researched in terms of doing her MBA. She is really personable. You can tell she is quite bright. I definitely concur with what you’ve said from my interactions with her.”
“Alright,” says da Silva, “who’s up next?”
The entire discussion took slightly under six minutes. There was no disagreement and surprisingly, perhaps, no debate over the candidate’s GMAT score which is 50 points below last year’s median for the class. But typically in rounds one and two, da Silva believes, a school sees its best applicants and Rotman tends to over admit in these early rounds.
THE APPLICANTS: A 28-YEAR OLD ENGINEER IN INDIA WITH A GMAT OF 710
The outcome for another candidate at the meeting, however, wasn’t nearly as good. The applicant, Sameer, is from India, where Rotman has gotten its most MBA students after only Canada. That’s why two of the school’s assistant admissions directors are assigned to recruit and evaluate candidates from India alone. In the class that arrived last fall, 54% hail from North America, 36% from India and China, 3% from Latin America, and 2% from Europe. Chinese and Indian students find Canada especially welcome these days because the country grants three-year work visas to graduates, giving Rotman a distinct advantage over U.S. and U.K. business schools.
“I think I’m up next,” says Roy, who with Dookeran mainly reviews applications from India. “Unfortunately, I have a no. This person’s name is Sameer. His resume is decent. He has four years in a pretty big company in India as a test engineer. He is 28. He scored 710 on the GMAT. He wants to get into IT consulting.
“At first glance, he seems pretty good,” she continues. “Then, I discovered that his GPA falls below our minimum requirement so he actually has second class standing.”
At Rotman, any applicant with an undergraduate grade point average below 3.0 cannot be admitted to the school without approval from the University of Toronto’s School of Graduate Studies. In any given year, Rotman will ask for approval to admit “non-standard” candidates for about 3% of its admits. But this applicant isn’t going to be one of them.
“I decided this person would not be a good fit for Rotman when I interviewed him,” Roy revealed. “He was very informal in the interview. He came across as immature. When I asked him to talk about a negative, he mentioned that he was a procrastinator. I thought it was probably not a good idea to tell me that especially for an intensive program like ours.”
Most of the admission officials in the room nod in approval.
“Everyone is going to want to get out of his group,” jokes Bailey Daniels, who reviews applicants from the U.S., Western Europe and Africa.
“The minute he said that I was like okay,” continued Roy. “I found him again to be on the immature side to have said that and then upon further examination both of his referees mentioned that he waits until the last minute to get things done. And another said, he needs to work a little on his time management skills.”
“At least, he’s self-aware,” chimes in Claire Gumus, who reviews the files from China.
“But at the same time he doesn’t meet the minimum,” adds da Silva. “The grades aren’t good.”
“Based on the grades, my interaction with him and the interview and his career goals in consulting, I don’t think he would be a good fit for Rotman,” concludes Roy.
A fascinating social dynamic seems to take hold in the room. An admissions officer who feels strongly in favor of an applicant becomes that person’s unbridled advocate. She coddles and protects the candidate against every gentle and pushy challenge. She extols the great promise of a successful young professional but still unformed future corporate leader or entrepreneur. And among the evaluators, the enthusiasm for any one person tends to become infectious. A favorable swell forms and support for the applicant builds.
But if the admissions officer is against the candidate, the opposite effect tends to occur. Little by little, the group seems to pile on cautious disapproval, reinforcing each other’s negative views that the applicant isn’t a good fit for the school. The person might not survive the rigors of the first-year curriculum, might not work well in a team, and could very well be considered an “admissions mistake” by the career services staff when the recruiters come and few offers are extended.
“I think you’re right,” agrees da Silva. “His GMAT is not enough. Alright, who’s next?”
Within the next few days, the applicant will receive an email from the school that will inform him of the decision.
THE APPLICANTS: A 25-YEAR OLD ENGINEER FROM INDIA WITH A GMAT OF 690
By sheer coincidence, Dookeran has another candidate who works for the very same firm in India as the rejected applicant.
“His name is Nikhil. He’s 25 and he’s got a 690 GMAT and an engineering degree from the Indian Institute of Technology, with a 3.9 GPA, which he earned in 2010. He works for the same company. He started as a systems engineer and then he moved on to be team lead and an IT analyst and now he’s a business analyst. So in almost three years he has had quite a few promotions.
“And he also did a lot of business development for his family business. What impressed me were his transitions at work but also his involvement in the family business. He was able to land new accounts from very big and well-known U.S. companies. That requires a lot of soft skills, negotiating and interaction which we don’t always see from people coming from places like this company.”
“Did he work with his family at the same time he was working at the company?,” asks Claire Gumus, an assistant director who is responsible for recruiting and evaluating applicants from China.
“He did,” says Dookeran.
“Is he energetic and good at time management?,” Gumus asks. “Did you get that in the interview?”
“Yes. His referees all talked highly of his communication skills, which came out in his interview. He interviewed well. In terms of his career, in the short term he said he wants a career in consulting in the supply chain industry, and long-term he wants to expand his family business internationally.
“In terms of his writing, he wrote well. No major issues. But really what stood out were his communication skills, his business development and his promotions. The only red flag I saw was that one referee mentioned a time when he could have worked better with a client but the referee went on to write how he had learned from that.”
“We are not always perfect,” chimes in Paterson.
“He’s strong academically, he communicated well, and he does have the soft skills to fit in. So I think we should make him an offer of admissions,” concludes Dookeran.
“What is his GMAT again?,” asks Gumus.
“It’s 690 with a 3.9 grade point average.”
“What were your thoughts on the skills that we have seen are necessary for people who are successful as consultants?,” probes da Silva.
“In terms of presence, he will do fine. He is polished and professional. So I think he’s got that. And in terms of dealing with people, like I said, I think he has the soft skills to carry on a good conversation.”
“Why does he want Rotman?,” asks Roy.
“Because of integrated thinking,” answers Dookeran. “He brought up a supply chain example of integrative thinking that was in the Rotman magazine two issues ago with Wal-Mart.”
“Did you send him the magazine?,” asks Roy.
“No.”
“He’s done his homework,” da Silva observes. “He seems like a solid admit. He’s not a scholarship candidate but he seems solid. He is a contrast to the other candidate because their backgrounds are similar.  But it is a world of difference when you get them on paper.”
“And this guy can obviously manage his time because he was working full-time at a top firm and at the family business at the same time,” adds Afrodite Cruz, another assistant director sitting at the end of the table.
“And this one got promoted several times at the company at and the other one has been in the same job for four years,” chimes in Roy about her own candidate.
“There’s definitely more leadership DNA in this guy,” agrees da Silva. “I like.”
“So we have an admit?,” asks Dookeran.
“Yes, we have an admit,” concludes da Silva.
Several of the assistant directors let out a cheer. “Yay,” they say in unison.
Once an applicant is approved, the red folder is passed to da Silva at the end of the table. When a candidate is either “on the bubble,” as da Silva puts it, or is deemed worthy of a scholarship award, the red folder goes to a broader admissions committee which includes all seven admission officials, plus MBA program managing director Frey and career services head Leigh Gauthier who wants to feel confident she can get the applicant a job after graduation.
A third of the school’s MBA students get some form of scholarship to help with the two-year tuition of $99,710 for international students (tuition is $87.103 for permanent residents of Canada), a sum that does not include additional fees of $3,300 or estimated living expenses of between $31,800 and $40,456 a year.
Da Silva nudges the meeting along. There are no detours from the job at hand, not even a bit of social chitchat.
THE APPLICANTS: A 27-YEAR OLD FEMALE BANKER FROM CHINA WITH A GMAT OF 750
“Ok,” she says turning to Gumus, “who do you have?”
Gumus is the team’s resident admissions expert on China. She has spent months traveling the country, from big cities to small towns in the hinterlands, helping to recruit applicants for the school and then evaluating them once their files come in. Today, Gumus has an unqualified winner, a young woman who had done a two-year stint with a global accounting firm before ending up at one of the world’s most prestigious investment bankers.
“We have Changying from Beijing, China. And unfortunately I have never met her in person but luckily she went to our dinner in Beijing last night for incoming and prospective students. I have been working with her since last year because she started her application then but for family reasons she couldn’t continue and she carried over her application.
“She is bringing six years of experience. She is 27 and she studied in New Zealand at the University of Auckland and did really well with a 3.7 GPA—a double major economics and finance. Her language skills are very strong. We had a very good Skype interview. She presents herself really well. The GMAT score is 750 and she is working toward her CFA level two. So she is very serious and progressive.”
Gumus keeps giving more detail.
“She was an accountant for two years—2007 to 2009. Then she moved to the investment-banking firm in Chengdu. I’ve been to Chengdu. It is a small town and she is very accomplished because she then got a promotion and was transferred to Beijing. The references are very strong. In the interview she mentioned that she is not a career changer. She wants to continue with banking. She is mainly interested in Canada. She was an international student before so she knows the challenge of being a student in another country. She finds Canada to be very friendly so a Canadian business school is on her radar, but we are not the only Canadian school on her radar. She didn’t mention any names but I have a feeling we know who she is after.
“She is very mature given her age. Her analytical skills are her key strengths. I have no doubt she is going to survive in the program.  So I think she is a good fit given that she has this diverse experience. In Australia she did lots of volunteer work and she was a relief volunteer during the Sichuan earthquake in 2008. I really admire what she has been doing with her life so far. My recommendation is to bring her to the broader committee to get Leigh’s perspective and to see how she interacted at the dinner with others.”
“Sounds like a scholarship candidate,” advises Paterson.
“I think she will end up with multiple offers so I think we need to make a competitive offer,” adds Gumus. “I think she has a lot to offer.
“Are we missing anything?” asks da Silva. “Are there any red flags? She’s almost too good to be true. She’s perfect. What about her interview?”
“In terms of the interview,” responds Gumus, “we do have equally strong candidates but she is going to be a good fit. Her paper application was too good to be true so I was waiting for the interview eagerly. The interview was very impressive. Unfortunately, I don’t have a video essay for this person because she started her application last year and carried it over.”
“I think we definitely want to review for scholarship,” agrees da Silva.
“And lots of money,” adds Paterson.
“Who goes next?” says da Silva.
THE APPLICANTS: A 25-YEAR OLD FEMALE SPECIAL PROJECTS COORDINATOR FROM CANADA WITH A GMAT OF 620
Afrodite Cruz steps forward with her applicant, a 25-year-old Canadian woman. Cruz has been working in admissions since 2003. She joined Rotman six years ago and has recruited students in South East Asia, the U.S. and Canada.
“I am also presenting someone who I am recommending as an admit,” Cruz starts. “She is Liza, has three years of work experience, mainly in marketing and communications. She is a special project coordinator at an agency in Windsor. Liza has a 4.0 from the University of Windsor in communications studies.
“Her GMAT was 620, so nothing outstanding considering that her grades were all As throughout her four years. That doesn’t worry me. The highlight of her application for me was her interview. I actually ranked her 20 out of 20.”
“Wow,” says Paterson.
“This is the best interview that I have had this year so far and one of the best interviews I have had in all my time at Rotman,” continues Cruz. “She was fantastic.”
“To be totally candid, I wouldn’t have guessed that based on her resume,” counters da Silva.
“She did the video so could you look her up,” says Cruz. “You guys will like her video and actually she gave a quirky answer to her second question which made me like her more.”
The candidate’s video pops up on the screen and she describes herself as energetic fun loving, driven, motivated, and passionate.
“She has a very natural presence,” says da Silva.
“She looks like she would fit in quite well,” adds Roy.
“What’s your sense of her quant ability because her GMAT score is lower?” asks da Silva.
“Her degree in communications doesn’t give you confidence in her quant skills,” observes Dookeran.
“Well,” says Cruz, “she wants to stay in marketing, branding and communications. So she is not going to be a career switcher and at the end of the interview she asked me about some of the pre-courses that we offer to help students who don’t come from a business background. So she is willing to come to Toronto beforehand and take some of those classes.”
“Good,” says da Silva. “The fact that she is that self-aware says a lot about her.”
“Those workshops will give her the fundamentals so she should survive in her first year,” adds Gumus.
“What were the references like?” asks Paterson.
“Very good,” replies Cruz. “When I spoke to her and saw the video this is exactly who I hoped to see. The referees painted a very accurate picture. Some of the things I cut out of the references were: ‘She is extremely self-aware and mature and comes across as genuine. She is well put together, a good communicator. She works well with others and her work is well beyond her experience…one of the most intelligent people I have ever met….an excellent team player with excellent leadership skills.’”
“Very good,” observes Gumus. “And the team will also help her with the quant skills.”
“Based on my observations, her essays, and what her referees have said, I recommend that we admit her,” finishes Cruz. “We would be lucky to have her. I think she’s going to be one of the people who will represent the school very well.
“Agreed,” says da Silva. “She is very solid. I like her perspective. Who goes next?”
THE APPLICANTS: A 30-YEAR OLD TRADER FROM BRITAIN WITH A GMAT OF 780
“Me,” says Paterson, who is sitting next to da Silva. “I have Robert. He is 30 years old with six years of work experience. He has a degree in economics from the London School of Economics. He is a U.K. citizen. I interviewed him the other day on Skype, and I gave him a 20 (the highest possible score) on the interview.”
“Oh, you had another great one!” affirms Cruz.
“Yes. I really liked him,” answers Paterson.
“Have you had other 20s?” wonders da Silva.
“Yes. I have had other 20s but he would be the best. He has a 780 GMAT. He is 83% on his quant and 81% for integrative reasoning. His references are highly positive. He is highly collaborative, extremely motivated, operates great with initiative, he’s a valuable team player, a good listener and extremely personable. The only thing is he is currently unemployed.
The red flag is hoisted and the room, completely silent as Paterson described the candidate’s profile, immediately comes alive. The questions from around the table are fired out like bullets from an assault weapon.
“For how long?” asks da Silva.
“Since June.”
“And why?” wonders da Silva. “What’s he doing?”
Several others chime in with similar questions.
“He left his job in asset trading because the firm in Switzerland was taken over and his job was deemed redundant. He did have a job offer but turned it down because he realized he is not going to stay there. He wants to pursue his MBA, and he hopes to do that in Toronto. He just got married a couple of months ago and he and his wife do hope to make Toronto home.”
“Therefore Rotman,” smiles da Silva.
“So that’s Robert,” says Paterson. “I would like to see him get a scholarship. I know he’s not working right now but…”
Da Silva cuts in. “What did he say he was going to do between now and the start of the program?”
“He’s taking French courses right now and he’s speaking with the company that offered him a job about doing some temporary consulting work,” replies Paterson.
“That’s good,” says Cruz.
“We had a similar candidate earlier in the year who you guys probably remember,” says da Silva. “And one of the big decisions was let’s get Leigh’s perspective. She then said that she wants to see how this person would package the story for employers. Does he have presence?”
“He totally has presence,” Paterson offers. “He’s lovely.”
“He’s done the video?” asks da Silva, about the new video portion of the application that Rotman put in as a pilot this year.
“Yes. And I did the Skype interview with him. By the way when he’s finished with the MBA, he wants to get into principal investments in the energy sector.”
“Let’s see the video,” says da Silva. She toys with a mouse on the conference table, clicks on a button and an image of Robert pops up on the large flat screen at the end of the room.
“How would I like my classmates to see me?” he says in a clipped British accent. “As someone who is good to work with. I would like to be seen as someone who questions norms—not asking questions for the sake of it but somebody who doesn’t accept things at face value but tries to understand the real reasons behind decisions. I am quite proud of the fact that I have gotten things done and I would like to share that with people.”
The video clip done, da Silva seems somewhat relieved. “I think he has what the careers folks will hope he has—that sense of confidence—but because it is an atypical situation I would like to bring him to our next conversation.”
“Yes, with a scholarship I am recommending,” adds Paterson.
“Yes,” agrees da Silva. “Any other thoughts?”
“He seems strong,” Dookeran tosses in.
“If it weren’t for the current gap, we probably wouldn’t be having much of a dialogue. That’s an important consideration for us.”
Paterson rushes in to defend her candidate. “It would be different if for the six years he worked he wasn’t strong. He also wants to travel a bit with his wife before he gets into an MBA program and have a bit of a honeymoon.”
“Nice,” says Bailey Daniels, another of the assistant directors.
“I’m sure the career coaches can help him with how to address that gap on the resume,” adds Gumus.
“I think that is half the battle, making sure he is someone who is coachable, who has a story and a skill set and is making valuable use of his time off,” concludes da Silva.
“I like him a lot,” adds Paterson.
“And last but not least,” says da Silva, turning to the only assistant director who has yet to present a candidate.
THE APPLICANTS: A 25-YEAR OLD FEMALE ARCHITECT FROM RUSSIA WITH A GMAT OF 650
“Almost all of us at the table have met her,” says Bailey Daniels, who is assigned the folders of applicants from the U.S., Eastern Europe and those interested in Rotman’s JD-MBA dual degree program. “She is from Russia but she is living in New York. Sheldon originally met her in September. I met her in November. Niki met her in December, and Niki actually conducted her interview when she was there.
“Let me tell you about Valeria. She is 25, with a bachelor of architecture from Russia, a 3.9 GPA and a 650 GMAT score. So she is getting close to the average.
“Nice,” says da Silva quietly.
“She was working in Moscow as an architect and then moved to New York and did work with an architectural firm there as well,” continues Daniels. “She left in August because she wanted a career change. She has very good communication skills. Her references are very strong. Niki gave her a 14 on the interview. She wants to come to Rotman because she is interested in business design like many of our candidates are. And we like to have those kinds of people in the program. She’s solid overall.”
“She brings good life experience, too,” says Gumus. “Russia. New York. And then Canada, too. I think that’s the difference.”
“She does,” acknowledges Daniels. “And in the future she wants to do business development in the real estate field but her long term goal is to launch a construction materials retail chain in Russia and invest in real estate projects there. She wants to do the Home Depot of Russia so she has the entrepreneurial bug.”
“It sounds like she would add some nice diversity to the class,” says Roy.
Agrees da Silva, “She sounds like someone who would add to her team and the class. She has that kind of diversity we want built into the class.”
“Her family has a construction business so she has this in her background,” continues Daniels. “She has been working with them since the age of 14.”
“That’s really interesting,” says da Silva. “She has construction/real estate/architecture backgrounds. I didn’t rate her interview above average but she is in a solid, good category. She has a fascinating life story and interesting exposure in a family construction business as a young woman and seemed passionate about it. Her father was her inspiration to go into architecture. Her work is a little bit more individually oriented so it is harder to give her a stronger interview rating. I think she will do quite well here.”
“She is passionate about the arts,” adds Daniels, “she enjoys working out, and she says in her essay that her experience in New York has taught her that there is nothing she can’t do.”
“I like it,” adds Paterson.
“That is a great attitude,” affirms Cruz.
“I remember that she taught herself English,” adds Dookeran.
“She is a good candidate for the venture lab we’re opening next year,” says Gumus. “She can run her Home Depot for Russia idea there.”
The meeting ends abruptly as da Silva gathers up the red folders of the approved applicants under her arm. As these things go, it’s a winning afternoon. Six applicants gain a yes, and only one gets turned down. The average GMAT of the candidates who will get phone calls from Rotman as a result of this session is 687, 14 points above last year’s 673 average.
But there are already another 260 more folders in the house to be read and evaluated, hundreds of interview sessions to schedule, and three more application deadlines to go until the final decisions are handed to this year’s hopefuls by the end of June.

Monday, November 21, 2011

S.1857 - Fairness for High-Skilled Immigrants Act

After years of legislative stalemate on immigration reform, Congress may be ready to enact a modest but important change that will loosen self-defeating restrictions on the hiring of highly skilled foreign-born workers.

Called the Fairness for High-Skilled Immigrants Act (S.1857), the bill would relax the quota system on high-tech visas so U.S. companies could hire the best-qualified foreign-born scientists and engineers regardless of their country of origin. It would be a rare step in the right direction for U.S. immigration policy.

Under current law, no more than 7 percent of the 140,000 annual permanent “green card” employment visas can be awarded to workers from any one country. That arbitrarily excludes qualified potential immigrants from China and India, each with more than 1 billion residents and thriving technology sectors. This makes no sense.

Highly skilled immigrants enable American firms to create products and new ways of doing business. Immigrants co-founded some of America’s top technology companies, such as Google and Intel. A Duke Universitystudy found that a quarter of high-tech and engineering startup companies between 1995 and 2005 had immigrant co-founders. One-quarter of international patents filed from the United States are credited to foreign-born residents.

For the government, educated immigrants are pure gravy. Because of their higher salaries and low unemployment rates, they pay more in taxes than they consume in government services from Day One. According to an authoritative study by the National Research Council, each college-educated immigrant and his or her descendants represent a $198,000 fiscal gain (in net present value) for the United States. That means a boost of 50,000 such immigrants in a year would be equivalent to retiring almost $10 billion in government debt.

Many potential highly skilled immigrants graduate from American universities. According to Gordon Hanson of the University California at San Diego, in an upcoming article for the Cato Journal, foreign students account for three-fourths of doctorates awarded by U.S. universities in mathematics, computer science and engineering, three-fifths of doctorates in physical sciences, and one-half of doctorates in life sciences. “Today, the difficulty is not in attracting top foreign students to America,” Mr. Hanson writes, “but in keeping them here after they graduate.”

Yet our government limits temporary H1-B visas to 85,000 a year for U.S. industry, a quota that often is filled months before the fiscal year begins. Permanent green-card employment visas, which also include family members of highly skilled immigrants, are capped at 140,000 a year.

America’s immigration system sends the signal to those foreign-born students with valuable skills that we would really prefer that they return to China or India to start companies and file international patents rather than remain here in the United States. And if U.S. companies cannot hire the workers they need here, they eventually will relocate their productive facilities to nations where they can.

It should not require a doctoral degree to see that allocating more green cards for highly skilled immigrants would be a big winner for the struggling American economy.



Wednesday, October 12, 2011

Fairness for High-Skilled

“The proposed bill H.R. 3012 removes per-country limits in employment based green card category. If enacted, this bill will drastically reduce the wait times of everyone in the current backlogs. A similar bill was sponsored by Congresswoman Lofgren in August, 2008. So the idea of this bill has bi-partisan support in the Congress. Immigration Voice applauds Congresswoman Lofgren’s leadership on fixing high skilled immigration system.

The most important thing now is to give this effort a final and consequential push. “Although this bill has wide support, it is not a done deal yet. We all need to actively get involved in making phone calls and sending emails/faxes to the Congress in order to give this bill a grassroots voice and also to out-number, outlast and out-weigh any push from either people opposed to immigration in general or opposed to removal of per-country limits. Now is not a time to take a break and risk 6 years of effort that went into reaching this phase.

“We all agree that high skills immigration should allocate and distribute green cards to the skilled immigrant workforce based on principle of first-come-first-serve-basis. Members of Congress have listened and now they agree with this principle…”

http://www.opencongress.org/bill/112-h3012/show

Saturday, May 24, 2008

To MBA or Not to MBA

We all know the never ending discussion of to MBA or not to MBA . Some say the opportunity cost of MBA is too high . With tuition cost of IVY league top ranking MBA school running above six figures and combined with two year income loss the total cost can run into 200 to 300K range . But consider the income increase after 5 years of graduation .The 2007 survey of top 10 school MBA grad says they expected to be making $194,764 to $279,275, five years after graduation. where as 2008 survey students expected to be making $183,884 to $278,364, five years after graduation.

The survey covered only top-tier schools, though it’s not quite clear by whose or what rankings

Monday, March 31, 2008

US News and world report B-school rankings

US News and world has published Business school ranking for graduate program ( MBA) in current . Clink on the image below for top 33 school . Harvard and Stanford tie for the first rank . Brigham Young univ ( Marriott ) UT look pretty good to me ( cost wise ) as out of state tuition is only $8700 per year and it ranks at 29th position .

Tuesday, March 11, 2008

Tips on Applying to Business School in the United States

During the past several years, international students have been flocking in ever larger numbers to U.S. business schools, where they’re greeted with open arms by admissions officers. Schools have been making a conscious effort to secure global perspectives for their classrooms by diversifying their student body. “We try to enroll at least 30 percent of our class from overseas,” says Kate Coffman, associate director of admissions at Indiana University’s Kelley School of Business. Indiana is in good company: MIT Sloan admits upwards of 40 percent of its class from outside the United States, and Purdue’s Krannert, around 44 percent.

The terrorist attacks of September 11, however, prompted the U.S. Immigration and Naturalization Service to revisit its policies on foreign students. Notably, the INS is implementing the Student and Exchange Visitor Information System (SEVIS), which, according to Danielle Sheahan, a spokeswoman for the government agency, essentially “enables us to make sure students who apply to school in our country are attending all their classes on a full-time basis.” American business schools will be required to use SEVIS by January 30, 2003, or else forfeit the right to enroll international applicants.

Liz Reisberg, executive director of The MBA Tour -- a company that helps U.S. business schools reach out to overseas applicants by arranging and promoting recruitment fairs in their respective countries -- is skeptical about the new service. “I fear that SEVIS might make our country a less welcoming destination,” she says. “Some of these precautions seem a bit unnecessary, considering that of everyone in the United States on a visa, students represent only around 1 percent. Many of the schools we work with were disappointed that we canceled our tour to the Middle East this year.”

As a result, many admissions offices are taking the initiative to make sure students from foreign countries—especially those where U.S. embassies and consulates have been more hesitant to hand out visas—feel welcome to apply. The University of Michigan Business School's Kris Nebel, director of school admissions, and Jim Hayes, director of academic services, say, “We’ve been more proactive in reaching out to the embassies in China and India” -- two countries singled out by several admissions officers as having the most problems with students' obtaining visas.

Although the transition to SEVIS might make it more difficult to get the necessary documentation, applicants shouldn’t be too worried. Most schools say there will be no change in the admissions policy for international students, and that their presence in the classroom is as important as ever. So if you're considering an MBA in the United States, here are a few tips.


Speak (and write) the language
According to several school officials, class participation and interaction are becoming ever more important in order to excel in business school. For this reason, all international applicants must be fluent in English. Those with another native language must take the Test of English as a Foreign Language (visit TOEFL.org for more information). Note that if you were schooled in an English-speaking institution or country, or have work experience in the United States, you might be eligible to have the TOEFL requirement waived.

If you do have to take it, don't stress. Recent Wharton graduate Marcio Boruchowski, who hails from Brazil, says, “The TOEFL really isn’t difficult if you know the language. The more arduous tasks are writing your essays in English and studying for the GMAT -- which is a much harder test.” Indeed, mastering the language is a must for both of these since they require you to think in -- not just translate into -- English.

Don’t expect admissions officers to be too lenient on this point. “We admit our international students much as we do our domestic ones,” says Tammy Greco, assistant director of admissions at the University of Texas-Austin's McCombs School of Business. “We expect to see all parts of the application in correlation with one another.” In other words, besides an equivalent to a four-year U.S. bachelor’s degree (a three-year degree will suffice in only some cases), you need to make a serious effort to write and revise your essays and study for the GMAT, especially the verbal section. Keep in mind that GMAT scores are usually required to be no more than five years old, while TOEFL scores are valid for no more than two years.

Make sure you can pay
To get the green light for entry, you’ll have to prove that you can pay tuition for one -- and sometimes two -- years. Grant-based financial aid is not plentiful at American business schools, and admissions and aid officers alike often maintain that most of their international students pay their own way. Ann Richards, director of financial aid and associate director of admissions at Cornell’s Johnson Graduate School of Management, offers this advice: “Students often get loans or sponsors in their own country and pay for themselves.” If these options aren’t available, Cornell and a few other schools offer loans that can be used toward your financial statement, provided you have verifiable resources to pay them off. Cornell’s loan – administered in conjunction with Citibank -- doesn’t require a U.S. co-signer, unlike some others. International students often find it easier to get extra funding after they’ve established a credit history in the U.S. But if you do try to borrow money for the first year, make sure you give yourself the time to find a co-signer who will assume the risk.

Apply as early as possible
Johnson’s associate director of international admissions, Kim Killingsworth, explains why this is necessary. “Because schools will be functioning with a new data collection system in SEVIS for the first time, processing the necessary documentation will take longer this year… so we strongly encourage our international applicants to apply no later than our second round (of three). ” Every school we spoke to echoes her advice: Apply early, not only so you can get your visa in time, but also to be considered for any merit-based financial aid.

“By our last round, we don’t have as much money to give to our students,” notes one financial aid representative. Additionally, students typically need this extra time to find a co-signer, since they’re notified about most loans when they find out they’ve been admitted.

Certain schools require their admits to attend special summer programs that emphasize improvement in English and communication. In such cases, it's even more crucial to give yourself plenty of time. So when researching schools, find out all of the requirements well in advance -- and be sure to put your hat in the ring as early as possible.

Try not to worry
A native of China, Wharton graduate Florence Hu recalls, “I spent the most time on my application. There’s really not much I could do after that.” Of course, the INS holds the cards, since it determines whether you get to enter the U.S. or not. On the whole, however, U.S. embassies and consulates have been efficient in distributing the necessary permits. “Our students are pretty much getting their visas,” says Maria Graham, the director of public affairs for Columbia Business School.

Michigan’s Nebel agrees: “Aside from more background checks in India and China, things have been running pretty smoothly.” And although the implementation of SEVIS might make the process of obtaining a visa a little longer, U.S. business schools are still determined to enroll a substantial part of their class from overseas. So after you’ve applied early, been accepted, and followed the instructions of the schools, U.S. embassy, and INS, you can savor your extra fifteen minutes of spare time, relishing the fact that you’ll get to work even harder next year.

Wednesday, September 13, 2006

SC/ST IIM grads earn 15-22% less than general category

Another story to add fire to India's anti reservation row. Scheduled caste and scheduled tribes graduates of premier Indian institutes of management get salaries that are 15-22% lower than their general category peers. While SC/ST students of the class of 2006 at IIM-Ahmedabad were offered an average of Rs 8.2 lakh in annual salary, general candidates were offered Rs 9.7 lakh, according to 2006 salary and performance data of IIM-A. The institute had 55 SC/ST students in a batch of 235.

At IIM-Kozikode, SC/ST students got an average annual package of Rs 7.06 lakh, 21.72% lower than Rs 9.02 lakh offered on an average to general candidates. IIM-Lucknow and IIM-Indore also showed a similar trend. IIM-Bangalore and IIM-Calcutta do not conduct such surveys though IIM-Calcutta director Shekhar Choudhary confirmed the salary gap, saying, “What can you expect of a student with a score of 160 compared with a score of 198?”

Interestingly, the SC/ST students’ average score at the Common Admission Test stands at 64 percentile opposed to general category students’ 98 percentile, according to Centre for Forecasting & Research, a market research firm that conducts annual B-school surveys.

The findings will be cannon fodder for the anti-quota lobby which fears the proposed 54% reservation will lead to a fall in the quality of graduates and the brand image of premier educational institutes.

When the 54% reservation kicks in, IIM-A will add 151 students to its existing batch size of 250, while IIM-C will be adding 142 more seats.

Pro-quota lobbyist BL Mungekar, member of the Moily Committee (formed to suggest measures to implement quota) and the Planning commission, says, “It’s the job of IIM directors to narrow the salary gap. IIMs are raising more questions than IITs on this (quota) issue.”

Today, it is more difficult to get into an IIM than into Harvard or Stanford. “About 98 percentile GMAT score (like CAT) are needed to get into an IIM. That kind of score can get a seat in any top global institute,” says IIM-A director Bakul Dholakia.

Thursday, August 17, 2006

In a Global Workforce, Does An MBA Still Carry Clout?

For 14 years Michael Ryan worked with the “Big Four” CPA firm KPMG, eventually rising to a director. But Ryan, a CPA, says that even as he moved up the ranks, the lack of an MBA or other postgraduate degree hindered his ability to advance. Finally, last December, Ryan, who now works with the Atlanta, Ga., building products distributor BlueLinx, entered Emory University’s Goizueta Business School for an MBA, choosing an Executive MBA format that allows him to pursue the degree without interrupting his career.

As companies strive for a competitive advantage, a bachelor’s degree is often no longer enough. Instead, an increasing number of enterprises are looking to recruit and advance MBAs, and graduate programs are changing to meet new business demands. Responding to the lure of greater mobility and increased salaries, more students are pursuing post-graduate business studies.

“We see a lot of people, including engineers and IT professionals, looking at the MBA as a way to broaden their opportunities with their current employers,” says Susan Gilbert, an associate professor in the practice of finance and associate dean and director of the Evening MBA Program at Emory University’s Goizueta Business School. “Quite a few students move from an IT specialist position to finance, marketing and managerial positions.”

Part of the reason is the prospect of higher compensation. In 2006, the average newly minted MBA will earn $92,360 during his or her year on the job, up 4.2% from the $88,626 received by graduates in 2005, according to the Graduate Management Admission Council (GMAC). The McLean, Va.-based organization administers the Graduate Management Admissions Test (GMAT), an entrance assessment tool used by business schools As part of the admissions review process.

Individuals who hold an MBA are also more likely to quickly secure a job. According to GMAC, 52% of respondents to a 2006 global survey said they had received or accepted a job offer before graduation, compared with 50% in 2005, 42% in 2004 and 36% in 2003.

To compete in today’s labor market, employees must have more skills and must be adaptable throughout their careers to changing technology, product demand, and global competition, according to a Rand Corporation research paper titled The 21st Century at Work. It also notes that a key challenge for the public and private sectors will be the creation of an education and training system that’s responsive to the needs of the twenty-first century labor market.

As Associate Dean and Director of MBA Admissions at Emory's Goizueta Business School since 1988, Julie Barefoot has seen an evolution in MBA programs and the students who are taking the courses.

“In response to the changing business market, the MBA curriculum at Goizueta has added components,” observes Barefoot. “There’s a greater emphasis on leadership development and communications skills. Of course we’re not neglecting accounting, analytical and qualitative studies, because companies still expect students to have the ability to analyze data and solve problems. However, in terms of one broad skill set that graduates need—the bar keeps rising.”

She adds that today’s recruiters expect new MBA hires to quickly add value to their company; and the makeup of candidates reflects this trend.

“A decade ago, MBA enrollees had an average of two years of work experience,” she relates. “Now they have about five years. As companies cut back on the training programs they offer to new hires, the timeframe in which MBA graduates are expected to start contributing keeps getting shorter. A candidate’s prior work experience has an increasingly larger impact on his or her ability to quickly ramp up performance.”

Barefoot points out that the impact of globalization is also reflected in the makeup of MBA candidates.

“As more companies do business across international borders, they’re looking for job candidates that can function well in a multicultural environment,” she explains. “At Goizueta, we’re seeing an incoming student population that’s internationally diverse, with candidates that are forging a global network of contacts that will have a positive, critical impact on their job performance.”

Many students say they are coming back to school to advance their career or increase their opportunities, but Andrea Hershatter, a senior lecturer in organization and management at Goizueta, says that the value of continuing education goes beyond that.

“I believe continuing education, both in the form of degree programs as well as other educational opportunities, is absolutely necessary, perhaps now more than ever,” says Hershatter, who also serves as associate dean and director of Goizueta’s Undergraduate Program. “I think there are three key reasons behind this: environmental, cognitive, and developmental.”

Addressing the environmental driver she notes that individuals today operate in a knowledge-based economy, where conditions change rapidly.

“The people who will thrive will be those who can not only understand what is transpiring, but can also forecast the related implications,” she says. “To make sense of a world that is simultaneously expanding in scope and contracting in reach requires both intellectual capacity and academic grounding.”

Taking up the cognitive issue, she notes that even very successful people can develop tunnel vision, since intentional, absolute focus—the kind that characterizes effective people—requires a screening process that may not be conducive to innovation and growth.

“In contrast, creativity requires combining interesting and seemingly unrelated bits of information in new and unexpected ways,” Hershatter advises. “The educational process, by definition, broadens perspectives and assimilates new approaches, methodologies and information. At its best, it is enlightenment. So even individuals who are returning to school with specific objectives find that the experience provides non-linear opportunities to refine, redefine, or refocus one's professional endeavors.”

Continuing education also enhances personal growth, adds Hershatter. “Even if going back to school simply pushes us out of our comfort zone and shows us how much we do not know, it is still a very liberating process,” she maintains. “All research shows the contribution of lifelong learning to the full development of the individual. Learning is a fundamental human need that does not diminish with age or accumulated wisdom. In fact, the more we know, the more we benefit from exposure to great thinkers and the frameworks they have developed for understanding the world.”

The importance of an ongoing educational process appears to be further underscored by the Rand study, which notes that, “Shifts in the nature of business organizations and the growing importance of knowledge-based work” favor the development of non-routine cognitive skills, including abstract reasoning, problem-solving, communication, and collaboration.

“Within this context, education and training become a continuous process throughout the life course involving training and retraining that continues well past initial entry into the labor market,” according to the study. “Technology mediated learning offers the potential to support lifelong learning both on the job and through traditional public and private education and training institutions.”

Adjoined Consulting, which was acquired by the global IT services firm Kanbay International in March 2006, actively recruits MBAs directly from top business schools as well as MBAs with several years of post-MBA experience. Managing Director Andrew Duncan explains that the MBA graduates “have consistently elevated themselves more quickly through the organization into important leadership and firm development roles - including driving our own post-merger integration activities."

Erin Melick, a Goizueta evening MBA alumnus, for example, has been working full-time in the Post Merger Office since the Kanbay-Adjoined merger. Chris Miller, another Goizueta MBA alumnus, references the firm's track record in demonstrating the value of MBAs.

“Our tuition reimbursement program is significantly greater than other firms simply because we have been able to quantitatively and qualitatively define the exceptional value that MBA graduates have contributed to our success,” Miller explains. “Every year the focus and allocation of resources to MBA programs has grown exponentially.”

Yet despite education's demonstrated value-added, and the ability of technology to make the transmission and transfer of knowledge widely accessible, some disturbing signs are emerging.

For example, only 55% of American students who start college actually complete it within six years, according to a 2005 report issued by the Society for College and University Planning, an Ann Arbor, Michigan-based organization that promotes research into issues affecting higher education. Among African American and Hispanic students, the number drops to 41%.

Women make up another group that tends to be under-represented in MBA programs, according to Elissa Ellis, executive director of the Austin, Texas-based Forté Foundation. The organization, a consortium of corporations, business schools and nonprofit organizations, focuses on ways to educate and direct women toward leadership roles in business.

“In general, women have been found to be more risk-averse than their male counterparts, and are thus less likely to sacrifice the time needed to complete an MBA,” she explains. “For women who are already in the workforce and either have children or plan to, any initial doubts about going for an MBA may be compounded by issues like balancing work and family, further discouraging them.”

All of this is taking place against a rising demand for MBAs. But will there be enough of them to meet that need?

One leading indicator of future supply—the number of students taking the GMAT—has remained stagnant and even dipped a bit, according to a report issued in May 2006 by the London Business School. Drawing on data gathered by the Graduate Management Admission Council, the institution says that during the period from 1995 to 2005, the number of students taking the graduate admissions test fell from 131,118 to 109,852. During that period however, it rose in Europe from 72,050 in 1995 to 86,500 in 2005.

Part of the decline in overall U.S. numbers may be due to opportunity costs, says Joan Coonrod, director of admissions of the W. Cliff Oxford Executive MBA Program at Goizueta.

“Many people today can’t afford to take the time to go back to school full time for a graduate degree,” Coonrod says. “Despite the clear advantages, people in general seem to be taking more time before deciding to enroll in an MBA program. And more of them are signing up for part-time programs, such as executive or evening MBA programs. These programs allow immediate application of learning back to the workplace—a real bonus for both the students and for their companies. Executive MBA programs tend to attract higher level professionals, so the faculty and class interaction is much more applicable to the business issues they are facing.”

The increase in the European MBA market is driven by a number of factors says Dan LeClair, vice president and chief knowledge officer at The Association to Advance Collegiate Schools of Business. The Tampa, Florida-based organization is made up of educational institutions, corporations and other organizations with a focus on business-oriented higher education.

“Through an initiative known as the Bologna Accord [a June 1999 agreement aimed at creating a system of standardized degrees throughout the European Union by 2010], it’s easier to transport degrees and studies throughout the EU, which encourages the pursuit of higher education,” explains LeClair. “MBAs are also gaining in importance in Asia, where booming economies are spurring demand.”

Meanwhile in Japan, the rotation away from the lifetime employment model has spurred competition among job-seekers, and more students are enrolling in MBA programs as a way to stand out from the crowd.

Looking ahead, LeClair sees significant differences in worldwide trends in the key 25-to-29 year-old population that makes up the bulk of full-time MBA enrollment.

“In the U.S., the population of 25 through 29 year-olds is expected to increase by more than 13% through 2020,” he says. “But Europe is expected to see an 8% decline in the age group during this period. In contrast, in Latin America and Asia this demographic group is expected to grow by 11% and 20%, respectively.”

Elissa Ellis, from the Forté Foundation, thinks market forces may eventually help to balance out supply and demand.

“As aging baby boomers retire, businesses may find a shortage of experienced management-level employees,” she says. “And the so-called Millennium generation workforce, male and female, will likely demand flexibility in their jobs. When businesses hurt, they tend to be more responsive; so there’s a good chance that in coming years we’ll see the kinds of changes in the workplace that will make it more attractive. And that may bring in more women and others that can refill the ranks of MBAs. The change will not come at lightning speeds, but I think it will come nonetheless.”

Wednesday, June 14, 2006

India's Top-Ranking B-Schools Are at a Crossroads

Academicians and industry captains are cognizant of India's emergence as an economic power due to globalization strategies, which are transforming various sectors of the economy including the fast developing sector of higher education. India is undergoing a paradigm shift, which is reflected in the present economic boom and growth rate. For example, stock exchanges are considered the barometer of economic growth and the Bombay Stock Exchange stock index has touched a historical peak of 12k, placing it among the top five stock exchanges of the world. There have been fundamental and irreversible changes in the economy, in government policies, in the outlook of business and industry, and in the mindset of Indians.

India has become a surplus nation in food and foreign exchange earnings, currently up to $1.3 trillion from a meager $4 billion to $5 billion in 1991. This unprecedented increase has been partly due to direct investment by foreign companies and partly due to outsourcing activities. The modernization of industry is now a front-runner in the emerging knowledge-based economy with a diversified and large industrial base, which is becoming globally competitive. For example, Tata Steel and National Aluminum Company Limited (NALCO) are the lowest-cost manufacturers of steel and aluminum in the world. Some Indian companies have gone global with a presence in 60 countries, including the United States, Europe and China. India is one of the top ten producers of bulk drugs in the world and 60 percent of its bulk drugs production is exported. India is the second-largest cement producer in the world with 110 million tons. The auto parts industry has emerged as one of the country's fastest-growing manufacturing sectors; this is expected to reach $8 billion in 2006. India's services sector growth rate has been very high too.

A large and growing market of 1.1 billion people, out of which, 300 million are middle-class consumers, has been attracting investment in India by world-class companies because of the high profit-making potential. Furthermore, because India has stable, mature, vibrant and exemplary democratic governance, institutions and transparency, it has a great potential to build world-class intellectual capital. For example, the rise of India as an innovation hub has attracted great admirers of Indian prowess in the I.T. area at a global level. All these new developments have increased the confidence of India on the international level, and its ability to decrease the level of poverty. These factors indicate that India's new economic policies are working. It is emerging as a global economic power and having an impact on the fast growth of the educational sector. Based on certain parameters and issues, this article attempts to evaluate whether India's top ranking B-schools are emerging as world giants.

Business Schools in India
In line with the changing economic scenarios, B-schools are also diversifying their programs to attract the world market and thus contributing to this transformation process as they are run in a businesslike fashion. There are over 950 B-schools approved by the All India Council for Technical Education (A.I.C.T.E.) in various categories including the Indian Institutes of Management (I.I.M.'s), university departments and autonomous private institutes. However, the sudden spurt in these B-schools has also raised concerns about quality and the need for regulatory mechanisms among academia and industry captains. In India, ranking surveys come out with different sets of rankings for B-schools. The following table lists the top 10 ranked B-schools in 2005 from one such survey, all of which have the potential to emerge as world giants in the future.

Rank in 2005 Management Institution
1 Indian Institute of Management, Ahmedabad
2 Indian Institute of Management, Bangalore
3 Faculty of Management Studies, New Delhi
4 Indian Institute of Management, Calcutta
5 Xavier Labor Relations Institute, Jamshedpur
6 Indian Institute of Management, Lucknow
7 Indian Institute of Foreign Trade, New Delhi
8 Symbiosis, Pune
9 Jamnalal Bajaj Institute of Management Studies, Mumbai
10 Narsee Monjee Institute of Management Studies, Mumbai

Source: Business Today

Indian School of Business (I.S.B.)
Among B-schools, the Indian School of Business (I.S.B.) in Hyderabad comes first to mind when we talk about emerging world-class institutions in India. It was set up in 2001 as a private B-school with the blessings of Fortune 500 companies and top Indian organizations. I.S.B. is considered a world-class institution because it meets a number of established parameters, for example, quality teaching and qualified faculty, quality research published in reputable international journals, admittance of quality students (G.M.A.T. and not C.A.T.), innovative curriculum, excellent infrastructure and library resources, intensive industry-interface, international association with top schools of the world, rich placement, dynamic dean and so on.

It collaborates with the world's leading business schools like the Kellogg School of Management and the Wharton School in the United States and the London Business School. It offers an innovative post graduate and executive development curriculum. Its faculty is drawn from top B-schools across the world. It has an ideal mix of resident and visiting faculty that gives students the benefit of international exposure while providing content that is contemporary and global in its perspective and at the same time giving students a flavor of Indian management practices. It offers a one-year Post Graduate Program, a Post Doctoral Research Fellowship Program and the short-term Open and Customized Executive Program. For 2006, in its post-graduate program, it had around 350 intakes, over 70 of whom are foreign students from all over the world.

Indian Institutes of Management (I.I.M.'s)
An emerging world-class B-school seeks to impact the management profession by offering high quality learning to students and executives from all parts of the world. Their programs are expected to be delivered by faculty who are recognized for their dedication to teaching and high quality research, and who have close ties with the international business community. The six government-funded I.I.M.'s (located in Ahmedabad, Bangalore, Calcutta, Lucknow, Indore and Kozhikode) are considered elite and privileged B-schools as every youth dreams of graduating from one of them. They all together admit about 2,000 students, and faculty numbers around 500. Among the six, I.I.M.A., I.I.M.B. and I.I.M.C. are among the top ranked in India as well as also highly ranked among institutions in the Asia-Pacific region. This status increases their potential to become world-class institutions. Furthermore, they have adequate resources as the director of one of the I.I.M.'s stated in a recent interview to Press Trust of India, "All the top B-schools are large in terms of their size, have diverse activities, world class infrastructure and a focus on research and consultancy." At the same time, I.I.M.'s pursue a business model in which they admit high quality students, nurture them under a management philosophy and promote the pinnacle of success as a "brand."

Program Curriculum and Teaching
I.I.M.A., I.I.M.B. and I.I.M.C. offer M.B.A., Doctoral and other programs. It has been claimed that their M.B.A. program nurtures world-class managers by exposing them to real life unstructured situations along with analytical tools and business philosophies. I.I.M.A. has also initiated exchange programs with more than 25 foreign institutions of equal repute. Every year, the Institute selects close to a quarter of its students and gives them a chance to spend one term at some of these other institutions.

In an endeavor to seek global recognition by enhancing their world ranking, I.I.M.A. and I.I.M.C. have started an innovative program, P.G.P.X.: a one-year Postgraduate Program in Management for Executives from all nationalities. I.I.M.A. has a tie up with University of British Columbia, Canada for the international immersion module. For the first time, G.M.A.T. will be one of the criteria for admittance of students. However, this was a long felt need as they started collaborations with H.B.S. and M.I.T. in the 1960's. The question is why these institutions realized this need for global recognition just recently. Why not at inception in the 1960's?

Some Salient Features
A perusal of the course structure of these B-schools shows a well-knitted component in core as well as elective courses from different areas of concentrations. They are also assisted by their international affiliates in the design and update of the curriculum. For example, the I.S.B. curriculum is designed by the associate schools (L.B.S., Kellogg, Wharton) emphasizing a global approach. Others may also receive input from industry stalwarts and alumni-turned-recruiters in order to incorporate practice-oriented materials including emphasis on communication skills. It appears that the need for offering a course on "Business Ethics" is not realized by them. Does this mean that M.B.A. students have been developing a negative attitude towards learning behavioral courses? Courses like International Accounting, Government or Public Sector Accounting, and so on are also not offered.

In these B-schools, students come from different spheres of life with various educational backgrounds such as commerce, management, economics, science, engineering and humanities, which bring with them all the advantages, disadvantages, fairness and prejudice of centuries of cultural heritage. A multicultural institute with a multi-disciplinary approach enhances the scope for a deep participatory learning approach.

One main bane of their education is less appreciation of Indian management ethos and practices and more use of American case studies, management theories and philosophy. Furthermore, it looks as if students are taught a great deal of generic strategies, which may lead students to perceive that management is largely analytic and generic which may not be true.

From certain quarters, it is also argued that the teaching approach of many Indian B-schools give students a compartmentalized view of management by function — finance, marketing, human resource development, production, and so on — and only a few give them an integrative approach to management education. In actual practice, all of them in one way or another are related.

In academic literature a number of teaching strategies and learning techniques have been suggested, such as enhanced (modified) lectures, questioning and discussions, writing in cases, problem-based learning: cases and guided design, group learning-teamwork, group learning-cooperative learning, drama, simulation games, technology-visual and computer-based instruction, technology-based delivery, fieldwork-service learning, and fieldwork internship and project work. Effective teaching not only implies pedagogic achievements, but also means sensitization in many areas for enlarging vision that is critical for attaining effectiveness. Self-learning is very important and an instructor would know how to motivate a student for self-learning. These days, I.S.B. and the I.I.M.'s widely use technology-based teaching in their M.B.A. and business executive education. Even World Bank offers online noncredit courses to the students of I.S.B.

The B-schools use the lecture-cum-case studies as a dominant method for transmission of knowledge. They rely heavily on American or Harvard cases that only provide students with past stories and scenarios and this may hinder the students' critical and lateral thinking in dealing with unstructured business situations. American culture, theories, levels of motivation and methods of doing businesses are largely guided by a culture of individualism and high uncertainty avoidance, which is different from the cultural values and business environment of India. Top ranked I.I.M.'s claim to have developed thousands of Indian cases. But why haven't such cases been popular?

Industry captains often argue that a few of the faculty in B-schools work on consultancy assignments but lack the cutting edge to drill deep as most assignments are either training programs or low-intensity workshops. Hence, there is some lack of exposure to real-life working environments. To gain this experience, the better method would be to intern with accounting companies for a limited period.

Students' Admittance and the Label of Elitism
To be admitted to an M.B.A. program, students have to go through a selection process, which includes entrance/admission tests, a group discussion and an interview if the candidate is successful in the written test. The aim of the test is to evaluate, under stress, a candidate's general verbal, mathematical and analytical abilities. Passing the management entrance test in India will require a superior command of the English language, quantities skills and a sharp mind.

The policy of the I.I.M.'s has been to admit students through the Common Admission Test (C.A.T.) and not the G.M.A.T. The C.A.T. result is less than 2 percent of the applicants who take this test, which means that only elite sages gain admission into the I.I.M.'s programs. But students who come from less privileged societies and less known colleges/universities — Uttar Pradesh (U.P.), Bihar, Uttaranchal, Rajsthan, Jharkhand and Madhya Pradesh (M.P.), for example — may not be able to pass this test easily due to language problems as Hindi is the medium of instruction in most of these institutions. How do I.I.M.'s expect such graduates to pass their C.A.T.? Furthermore, one can argue that in a changing society, talent is not the only monopoly of a small section. Therefore, talent from less-represented sections must get an equal opportunity to study in these institutions, which were created and funded by the government. This leads us to the debatable issue of creating reservations for other backward castes (O.B.C.'s) in these institutions.

Faculty Research
It is generally seen that top B-schools around the world have a very strong research base and flavor with their deep impact on industry and society. Publication of high quality research in prominent internal journals is a prerequisite for a B-school to be considered an international institution. In the past, several committees appointed in India (for example, the Nanda Committee 1981, the Kurien Committee 1992, the Ishwar Dayal Committee 1995 and the Management Education Review Committee 2003), recommended efforts to promote a strong research culture in management institutions. However, rapid progress has not been achieved in this regard. According to a joint survey conducted by COSMODE Management Research Center and Business World-India (COSMODE-B.W.), in 2002 there were only 3,600 Ph.D.'s in Indian B-schools. "What they really need is 11,000," the survey said. "The gap is not going to be closed anytime soon: the Top 100 B-schools produce around 110 doctorates annually while an additional 20-24 come from overseas every year."

When it comes to publishing their research in Indian and regional journals, the faculty from the I.I.M.'s have a record of accomplishment. A few of them also have their research published in reputable journals around the world. However, it seems that scholars from two fields in particular — Production and Quantitative Methods, and Information Technology — contribute about half of the Indian articles published in international journals, which is not surprising to us because Indians are known globally for their expertise in these areas. On the other hand, faculty in the core management areas — finance and accounting, marketing, behavioral sciences and so on — publish comparatively few articles in international journals. Compared to the publishing output of faculty at top B-schools like McCombs School of Business in Texas or the Tuck School of Business at Dartmouth in New Hampshire, I.I.M.'s faculty members have a long way to go.

C. K. Prahlad of Michigan University once remarked, "The lack of a research culture also feeds back into the system as a lack of quality faculty. If the number of publications in … [reputable international] journals is any indication, the B-schools' faculty has miles to go. It is no wonder that there is a dearth of good role models in business management research in the country. One hopes that business schools and businesses are slowly realizing the need to strengthen research. The software giant Infosys has been supporting doctoral research at various I.I.M.'s. The Bharati Telecom has initiated similar funding at I.I.M. Lucknow."

Furthermore, the faculty of I.I.M.A. seems to have large research projects funded by international and national agencies. There is a good participation by its faculty at national and international conferences. However, I have not come across any accounting and finance faculty participating in the world congress of either the European Accounting Association (E.A.A.) or the American Accounting Association (A.A.A.).

On the other hand, most of I.S.B.'s faculty publications are in top journals, which give it a slight edge compared to other B-schools. However, according to Jayant Sinha of McKinsey, there is room for improvement:

"Even I.S.B., which gets an all-star visiting faculty from some of the best global B-schools every year, needs the physical presence of faculty for a longer period if it has to get research going. From the perspective of making I.S.B. known for thought leadership, we need to have research, and for that we need permanent faculty," Sinha says.

Some time back, in order to promote and encourage Indian accounting researchers to review and publish papers in international journals, I sent a few manuscripts to them for a rigorous review. The quality of the reviews (of those who responded) was worse than that of the manuscripts.

Faculty members from Western B-schools sit on the international committees of the World Bank, UNESCO, U.N.D.P., the Association of Commonwealth Universities and accreditation boards. They act as external referees on the evaluation boards that recommend the promotion of professors in other universities and institutes. They are invited by international journals to be guest editors of special issues. Unfortunately, not many people from Indian B-schools can claim that honor.

Job Placement and Industry Interface
Management experts forecast that businesses in the 21st century will be composed of groups of specialists who work together on a specific project and then disband. Management education offers all the necessary tools to handle successfully various business and management related issues in a fast changing global economy. Consequently, according to one estimate, about 10,000 M.B.A.'s are churned out by I.I.M.'s and a host of other universities and recognized institutes every year in India. A graduate with a good M.B.A. degree has no problem getting a good job. An M.B.A. degree is considered ideal by job seekers as well as employers. Recent graduates are generally inducted as management trainees for limited periods before being absorbed in regular scales.

Job placement is the impetus for Indian B-school rankings. The I.I.M.A. claims that when it comes to recognition by major recruiters worldwide, there is an increased global recognition to job placement and job diversity. For 2006, I.I.M.A.'s 235 M.B.A. graduates had, on average, three job offers per graduate. The majority of the placements came from multinational enterprises (M.N.E.'s) and elite industries. Other I.I.M. cases were more or less similar. However, not increasing the intake in their institutions may have resulted in a big demand-supply gap, as R. K. Gupta argues:

"Placement is the excuse they have found to create hype and cover their weakness as they have made little contribution to management theories. On the same coin, they use public grants but cater to a niche market of capitalists and multinational enterprises," Gupta says.

What percentage of their graduates joins the public or social sector? Electricity, health, education, transport, urban planning and rural development sectors are mostly mismanaged and this in need of qualified managers. However, it seems that the aim of current management graduates is to earn money for themselves in order to cover the expenses they have incurred acquiring their skills.

"The placement mania makes M.B.A. students regard jobs and salaries as the be-all and end-all of things," say Vivek Kaul and Hasan Ahmed. "This attitude is inculcated in very bright, young and impressionable students, right from the time they enter the B-schools. Instead of imbibing a spirit of idealism and developing a strong desire to change the world for the better, students leave their B-school after graduation totally obsessed with making money and progressing in their career."

As can be seen from the above, B-schools have a good rapport and interface with industries. Many of them also receive sponsored projects, consultancy assignments and internship for their students. Many of their former graduates are C.E.O.'s. As a result, some members of the faculty, especially those from I.I.M.A., are external members on the boards of many companies. This may also help them gain their practical knowledge.

Setting Up Overseas
After a great deal of public debate, on Feb. 2, 2006, the government of India allowed I.I.M.'s to open branches overseas after meeting certain criteria. I.I.M.B. is the first institute to open a branch in Singapore. The S.P. Jain Institute of Management and Research, in Mumbai, has had a campus running at Dubai since 2005 and a new Singapore campus is expected to be functional by 2006. Furthermore, the Institute of Management Technology (I.M.T.) in Ghaziabad announced that it would open a branch in Dubai this year. This overseas expansion is expected to generate extra revenues, resulting in a reduction of government grants especially for I.I.M.'s. Furthermore, by offering incentives, I.I.M.'s and non-I.I.M.'s alike may also attract talented faculty to improve the quality of teaching and research. Faculty will get good exposure to how business is conducted in other parts of the world and conduct quality research in a different culture. Globalization will promote Indian social, cultural and educational values and skills overseas, resulting in great respect and pride for the country.

World Ranking
The I.I.M.'s at Ahmedabad, Bangalore and Kolkata consistently have been ranked among the top by almost all surveys. Presently, Indian B-schools are ranked in India and Asia-Pacific, but when compared to global rankings, they fail to appear in the top 100 global B-schools in the ranking surveys of Business Week, Financial Times and Forbes. Even Chinese B-schools figure among the first 40 in these surveys. There is a strong feeling that the I.I.M. is a highly coveted brand and its M.B.A. program is overrated, especially that of the I.I.M.A.

Currently, no Indian B-school has international accreditation from the Association to Advance Collegiate Schools of Business (A.A.C.S.B.) or the European Quality Improvement System (E.Q.U.I.S.). The I.S.B. is currently just getting underway with the A.A.C.S.B. It is a long process but the I.S.B. is on track to be the first A.A.C.S.B.-accredited B-school in India. However, very recently, Management Development Institute (M.D.I.) Gurgaon has been accredited by the Association of M.B.A.'s (A.M.B.A.) in Britain, making it the first B-school to receive an international accreditation.

Conclusion
Certain critical issues face Indian B-schools in their quest to mold students using a holistic and fully integrated approach based on academic rigor, building character, and nurturing values and a curriculum for meeting industry expectations and the external environment. Among them, the I.S.B. has greater autonomy and flexibility because it is in the private sector and can pursue the goal of being the first world-class Indian B-school very soon compared to the I.I.M.'s, which are in the government's domain. The I.I.M.'s face frequent interference in their governance and autonomy matters, which throws a wrench in their functions, impedes rapid growth and creates barriers to raising the level of India's intellectual capital in the new era of the 21st century. Only by raising the level of intellectual capital, can I.I.M.'s achieve their dream. They must hold to the advice of F. D. S. Choi, emeritus dean of the Stern School of Business:

"The key ingredients to be a world-class institution are: (1) faculty commitment to research and teaching excellence; not one or the other; (2) a committed professional staff who understand higher education, (3) quality of students admitted; (4) financial resources and (5) leadership of the dean/director. If any one of these is missing, becoming a recognized world-class institution is not in the cards."

Thursday, May 18, 2006

India Changing : Postcard from India

An American set out for India last year to begin a documentary on perceptions of America abroad. During the course of this trip, he became interested in a place he'd never heard of: Varanasi. The rhythms and rituals of daily life there are completely different from what most of us know and view it .

Sunday, April 23, 2006

Push and pull of the MBA bull run

It is about the Wharton School, University of Pennsylvania. Wharton offers the best undergraduate business program in the United States, considered equivalent to an MBA.

Founded in 1881, Wharton has pioneered innovative business curricula and launched the business careers of thousands of Wall Street and Fortune 500 tycoons.

The School takes 500 of the world’s brightest students willing to stake a whopping $120,000 investment in their education for the next four years. We are taken through the ivied walls of Wharton into the maelstrom of the Class of 2004 recruiting season as experienced by the hearts and minds of seven seniors coming from multiple backgrounds.

It is a gripping account of their story, their aspirations, the challenges they encounter, their capacity to cope with unexpected obstacles and its collective result.

They include Jon Gantman, a ‘legacy’ student whose parents studied at Penn. About ten percent of every Penn class is usually reserved for ‘legacy’ students, Shimika Wilder, an athletic African American, who was brought up in Maryland comes next, Shreevar Kheruka, brought up in Mumbai, and Anthony Sandrik, (originally from Lebanon), brought up in Manhattan, who wanted to ‘pursue a life where borderlines rarely exist.’

Finally, Grace Yoon from Los Angeles, who soon learnt the perils of “out of the box” thinking and the nitty-gritty of interviewing.

In contrast, Regi Vengalil, is a first generation Indian American, who wanted to become the ‘master of the universe’, a common MBA dream! And Jessica Kennedy from Austin, Texas, who was born with both drive and discipline.

Wharton is a four-year marathon. It culminates in a final sprint that takes the form of a ten-week recruitment period that turns out to be more demanding than anything these tender youth have ever experienced in their lives. They work against the odds, doing with very little sleep, working long exhausting hours and yet they manage to keep their wits about them!

Burnout!

If they make it, the opportunity that awaits them lies in joining the ranks of the global financial and corporate elite! The allure of the dream is as heady as it is seductive. It means power, wealth, fame, recognition and a chance to shape history. It is an irony that stiff competition for high pay packets usually results in the recipients burning themselves out in the first five years!

This is a challenging area of research and worthy of serious attention.

Do these young graduates eventually shape up? Was it worth the effort, money, energy, time, lack of sleep and coping with the competition?

“Having met many of Wharton’s future business leaders of America”, writes the author, “I can say that Wall Street in the twenty-first century is in good hands.”

This is too pat, too neat and a little hard to digest! There will be many who will disagree at the record of corporate America.

I was strongly reminded of Swami Yogananda Paramahamsa: “Happiness does not consist in getting what you want when you want it! It consists in getting what you need when you need it!” Yet, there is no gainsaying that the book invites public discussion on how contemporary global values shape our youth in defining not only their own aspirations, but also equally, the ambitions of their respective nations in a deeply divided world.

Tuesday, April 18, 2006

Book Review: How to make it to the best B-school

Mohit Kumar Jain and M. Harindran, both IITians, have written Break the MBA Admissions Barrier, to help make it to `the world's best business schools'. The book, from Pearson Education (www.pearsoned.co.in), begins with the question `why MBA'.

Reasons are many, such as career change, better pay, preparation for own business, credibility, and so on. "Consider a top MBA programme to be a boot camp," instruct the authors. "It will keep you on your toes... You will be forced to participate in discussions and be prepared for the occasional embarrassment. You will need to learn and appreciate the importance of interpersonal skills and dynamics through study groups where you would collaborate with people from all over the world."

The book has inputs on `choosing the school', `managing the timelines', `money matters', and `visas'. Mohit and Hari lay down `the 10 commandments of a B-school application'. Such as: `develop substance', by picking from incidents that demonstrate your leadership potential; and `build on your strengths and address your weaknesses'.

The authors advise: "Well-written essays can tilt the balance in your favour despite a low GMAT score, GPA or a career that has involved many switches." Remember, that to make an impact on the admissions committee, essays need to be humane and realistic too. "Qualities like creativity, maturity, and leadership can be brought out in the essays in your own language."

Good counsel.

Friday, April 14, 2006

US wants to replicate India's tech education success

The India-US education scenario is full of puzzles. Vastly larger number of Indians go to the US for higher studies than do Americans. On the other hand, US firms are recruiting Indian technical graduates in thousands, impressed by their quality.

“With a high quality of education and strong focus on Mathematics and Science, India is churning out large number of highly skilled people,” observes US secretary of education Margaret Spellings.

But despite the availability of such quality education the number of Indian students pursuing studies in various universities and institutions in the US is much higher than that of the US students studying in India.

Sources say that over 70,000 Indian students are undergoing higher studies in the US, which is the highest anywhere in the world. In contrast, there are just 780 US students presently undergoing studies in some Indian universities, mainly in IT, agricultural sciences and working with high schools to understand the pattern of higher secondary education in India.

Senator Michael B Enzi feels that “although more American students can come here, getting into universities here requires going through a very competitive process.” Although the same competitive process was there in the US, “but we obviously have much excess intake capacity in our colleges and universities.”

He, however, said that in the US interest to ensure that the students from other countries, who are getting educated in the US, should stay and work in the country. “We want their innovation skills and talents to be utilised in our country.”

Both Spellings and Enzi, who were the part of a delegation comprising some leading US Senators that visited Bangalore recently told Business Standard that the way India was churning out over 200,000 engineering graduates every year, while at the same time maintaining quality, really baffled them.

“Education of course is a shared value between the two countries and as the secretary of education, I am also anxious to know how you develop human capital and such a vast talent pool,” Spellings said. This was evident from the fact that so many American industries and companies were coming here to grow and expand, she added.

Underscoring the strong emphasis on Mathematics and Science in the Indian education system that produces large numbers of highly skilled people, the US education secretary said, “we need to incorporate this in our country”. This is one of the reasons why the US president has called for an ‘American competitiveness initiative’, which focussed on secondary education and Mathmatics and Science.

She said in the changing scenario, more and more US students are interested to learn in India, particularly in the IT and systems management field.

“At Infosys, they were telling us there were 300 permanent employees who will come here for six months to two years from the US and then go back. These are growing programmes and will grow over time,” she pointed out.

“There are already some instances when both Indian and US students are part of joint online degree programmes with partnership between the institutions here and in US.” This is happening as the barriers, whether bureaucratic or geographic, are breaking down, she added.

Sunday, April 09, 2006

Hyderabad B-school beats IIM

While IIM alumni are talking in lakhs, students of a five-year-old B-school in Hyderabad are getting ready to count crores.

A graduate of the Indian School of Business has got a never-before offer of $233,800 (Rs 1.04 crore) a year.

While ISB dean M Rammohan Rao was cagey about announcing the student's name or the organisation that made the offer — "it is infringement on privacy," he said — he let on that three others had got Rs 1 crore-plus offers.

Thankfully, there is gender parity in the overload of greenbacks, with two of the four who got over Rs 1 crore being women.

The Class of 2006 is one happy batch. The highest domestic salary was Rs 30.33 lakh and the average an Indian company offered was Rs 11.77 lakh, an increase of 18 per cent over last year. The average in ternational offer saw a jump of 21 per cent over 2005.

There are more companies queuing up on the Hyderabad campus. This year, 142 companies came hunting for whiz kids. US-based realty firm Tishman Speyer made its first foray into India by parking at ISB.

It is not just the money, say students, some of whom chose Indian companies over pay cheques in dollars. "I was offered a very interesting job by a US-based tech company but I wanted to be closer home," says Yashraj Erande.

"So I took a job offer which would help me work in India's business environment."

In a new drift, several ISB students opted for jobs with various media companies, including RPG Saregama.

Kartik Ramakrishnan always wanted to be a consultant and he got the offer he wanted. Then came another offer — to set up an FM radio station. And he opted for this new challenge.

Thursday, March 30, 2006

B-school grads seek mind over matter

Even as domestic average pay packets in the top B-Schools closed on the Rs 10-lakh mark this year, some students have opted for what they call the ‘right job’ instead of getting attracted by the lure of the lucre.

These students of top management institutes, including the IIMs and ISB(Hyderabad), took an offer that had package differentials to the tune of upto Rs 3 lakh, which translated into a differential of 20-30% of their total pay package.

In the case of the ISB, Hyderabad, whose placement cycle is in its final stages, at least seven students declined offers with a bigger pay packet. The list included Karthik Ramakrishnan, who has opted for a job in the media sector which offered him Rs 3 lakh lower than the offer from a consultancy firm.

According to him, “Although I always wanted to get into consulting, an entrepreneurial offer like the radio offer is hard to come by straight out of B-school. It involved a trade-off, since the consulting offer was higher paying, but for me the thrill of doing something new scores over money anyday.”

Some other students who opted for a lower package for a different job of their choice included - Akshay Singhal who opted for a consultancy over an IT company(differential of Rs 3 lakh), Amit Gupta who opted for consultancy over financial services (Rs 2 lakh) and Bhasker Mehdi who accepted the offer of a medical services company instead of an IT company with a difference of about

At IIM -A at least two students opted for A relatively lower packet within domestic offers, which translated into a differential to the tune of Rs 1-1.5 lakh per annum. These include Ravi Swaminathan and Preeti Patel.

In the case of IIM(Calcutta), which clocked the highest average domestic package amongst all IIMs(Rs 9.81 lakh) this year , the differential was to the tune of Rs 1.5-2 lakh where a student opted for a position in a FMCG company over a bank even though the latter was offering more.

As expected the biggest differentials were accounted for by students who opted for a domestic job over the dollar salaries offered for an international posting. This, however, needs to factor in higher living costs abroad.

These include names like Yashraj Erande of ISB who opted for consultancy firm Boston Consultancy Group(BCG) over a Dallas posting of an IT company, which had a package of $80,000 attached to it. The difference was to the tune of Rs 27 lakhs in Indian currency.

The differentials were again substantial in case of two IIM Calcutta students Abhimanyu Ganesh and Arpit Badjatiya who declined international offers in the Investment Banking space amounting to about $110,000 to opt for management consulting in India.

Two other ISB students also opted for a domestic job even as they had an international offer –– Bhagyashri Shinde settled for an IT company which offered Rs 8 lakh less than the offer from an international investment bank and Simran Khara who chose to forego a similar amount by choosing a consultancy firm in India as against an international offer from a financial services company.

Sunday, March 19, 2006

No Indian B-school on top

Coming close on the heels of the government reluctantly allowing Indian Institutes of Management (IIMs) to open branches abroad, a rather distressing but not unsurprising bit of news filtered through last week. According to a Financial Times survey, no Indian business school figures in the top 100 business schools in the world. One would have thought that the IIMs, established in the 1960s, would have forced their way into the elite group. After all, 45 years of being at the top in India should have created a global brand rubbing shoulders with the best.

Indeed, the timing of the survey is fortuitous since it comes at a time when supply of cross-border education and tuition fees charged by management institutes has been discussed passionately by both sides in this debate. One view has been that Indian business schools should be confined to addressing the domestic market before they venture abroad, while the tuition fees they charge should be capped at about one-third of what schools are on average charging at the moment.

Both steps are retrograde and fortunately neither of them is being pursued with any degree of seriousness. The IIMs have been allowed to go abroad and the Supreme Court has decreed that the fees should be decided by the individual school with the state government’s oversight.

Both these factors are among several that influence the quality of a business school and its international reputation. The others are quality of students, faculty, infrastructure and placements and the FT survey dutifully captures all of these. If the resultant index is interpreted as reflecting international competitiveness, then it can serve as a guide for strategic direction and policy initiatives.

That no Indian B-school is internationally competitive is a result of the lack of international and domestic competition. This may be a surprising statement given that 1,200 or more such schools exist in India. The market has settled itself into an equilibrium where there is not much “competition’ for students among the various segments. Competition is much more effective and severe among the students themselves. The status quo thus established is comfortable and as long as there is an endless supply of domestic students, the equilibrium is unlikely to be disturbed. This is similar to the protected market that was available to Indian automobile companies, for instance, in the 1980s, replete with long waiting lists and a conspicuous absence of innovative activity.

Allowing B-schools to establish branches abroad is a necessary but not sufficient condition to disturb the existing equilibrium. While such a move can no doubt act as a “window” of learning for the schools going abroad, it will not spur “innovation” in domestic management education. What is needed is lowering entry barriers for overseas business schools to establish branches in India (a la Singapore) as well as for private domestic players to enter the education market space. Niche players like ISB are unlikely to provide effective competition to the established schools. Foreign business schools will not pose a threat to domestic schools, given their high establishment costs. Ultimately, it seems that intense domestic competition and the fight for attaining leadership will provide the right incentives for a few Indian business schools to emerge as world class.

Wednesday, January 18, 2006

B-schools grads salaries on the rise

They may not be the first business school most MBA aspirants in India want to get into (let's face it, IIM-Ahmedabad is still what everyone aspires for, followed by IIM-Bangalore and IIM-Calcutta), but there is no overlooking the fact that these B-schools are among the best in the country.

Places like Symbiosis Institute of Business Management (SIBM), IMT Ghaziabad and T A Pai Management Institute (TAPMI) have made their presence felt on the Indian management school scene and have, of late, started to register on the radar of companies like Colgate Palmolive and Nestle who earlier only went to the absolute top notch schools to recruit.

And the reason according to Varda Pendse, director, Cerebrus Consultants, an HR consultancy, is pretty clear too. "With IIM graduates preferring foreign companies, Indian companies are being forced to move to the next level of B-schools," she says.

But this does not mean that the companies are settling for anything but the best. The top students at these institutes are easily at par with the students at other IIMs, and also, these companies are given the first preference when interacting with the students at these institutes, so in the process end up recruiting the brightest students of the batch.

Most of these institutes have finished their final placements for 2006, and the numbers speak for themselves. The highest salary at TAPMI has gone up from Rs 6.75 lakh (Rs 675,000) last year to Rs 7.75 lakh (Rs 775,000) this year and Professor Raghunath, chairman, placement committee, TAPMI, says that one trend visible this year has been the increased recruiting by the IT and financial services sectors.

At IMT Ghaziabad too, it is a similar story. The highest domestic salary offered here was Rs 9.25 lakh (Rs 925,000) by Genpact, substantially higher than

Rs 7.52 lakh (Rs 752,000) which was the top offer last year, says Professor Nilanjan Chattopadhyay, chairman-placements, IMT Ghaziabad.

This is easily at par with the highest salary at Jamnalal Bajaj last year, which will have its round of placements only next month. At SIBM, the top international offer was $64,000, while the domestic one from JP Morgan was Rs 8.9 lakh (Rs 890,000). On most campuses, a fair number of companies had to return empty handed with placements being completed in between 5-8 hours for about 150 students.

Pendse points out: "While the salary for a particular profile would be the same irrespective of the institute, chances are that the differences in the compensation packages are a result of the difference in the functions."

The salary difference also depends upon whether the student has prior work experience or whether he is being taken at an entry level position. Prof Chattopadhyay says that this year has also seen a marked increase in the number of consultancy firms recruiting from non-IIMs.

"This is, however, primarily driven by the fact that they are not getting enough resources from IIMs alone, and therefore, it is more need driven than anything else." he explains.

Whatever the reasons, the students for one are not complaining about the increased opportunities (and heftier packages) coming their way.

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