Return to Virginia Business - January 2003

Getting Back to Business
With the Economy Sputtering, Now’s the Time for Extra Schooling

It’s a fact. There has never been a better time to take advantage of Virginia’s abundance of business school offerings. In this era of economic uncertainty, many busy executives are taking the time to invest wisely in their future. With interest rates at historical lows, getting a loan to finance continuing education has never been more affordable. And as the potential for a job promotion diminishes, while companies wait out the economic downturn, putting in a few extra hours hitting the books may be a better use of your time than putting in overtime.

The recent economic slowdown has resulted in an increase in business school applications, which tend to be cyclical, according to Richard J. Klimoski, dean of the School of Management at George Mason University in Fairfax. “Right now, when it comes to interest in advanced degrees, the news is good for business schools,” says Klimoski. “The overall quality of the applicants is up, and the desire for executives to seek graduate degrees tends to increase in a down economy.”

One reason for heightened interest in executive education is the bleak outlook that many middle- and upper-level managers see in the market. The stagnant economy allows managers to devote the time outside of work and take advantage of employer-funded programs, in periods when prospects for promotions are slim. And other executives are taking their severance or early-retirement packages and investing the money in their education. Now is a good time to return to school and hone your skills that will improve your prospects in the job market. Many applicants entering today’s programs, envision a much healthier economy when they graduate in two or three years.

And GMU is not alone in its assessment. At Mary Washington College in Fredericksburg, their relatively new MBA program, now in its third year, has seen the largest increase in its enrollment this fall. The current program has 125 graduate students, representing a 40 percent increase over last year. Along with MBA students, Mary Washington also saw an increase in bachelor’s degree completion for working adults, with current concentration areas in leadership, management, computer technology and e-commerce.

To put this in perspective we spoke with Andres Fortino, director of the MBA program at GMU. “Enrollment in our MBA programs is very high. We receive 700-800 applications per year, competing for approximately 250 slots in the program” says Fortino.

As you can see, just because you want to enroll in an MBA program doesn’t mean you’re going to get accepted. Fortino says that programs like the one at GMU counsel the applicants on the qualifications they need to be accepted and the time and effort a graduate-level program takes. The main goal of the university is to make sure that there is a good fit between the applicant and the program because the last thing a graduate degree program wants is for an applicant to drop out. The workload and time commitment is large — affecting your employer and your family. So GMU wants each applicant to understand what he or she is getting themselves into. “The business school market is very competitive and we want to counsel our applicants on making the right decision when it comes to a graduate degree,” says Klimoski. “The bottom line is we want our students to succeed.”

However, the sputtering economy is not always a guarantee that b-school applications will increase. Just ask Dr. John Mulford at Regent University in Virginia Beach. Although Regent offers both full- and part-time MBA programs, the majority of applicants are part-time. “Generally, business school applications are cyclical and in a down economy enrollment improves, but we’re not seeing that right now” says Mulford. “Most of our applicants are employed full-time and want to attend part-time at night. What we’re seeing is a decrease in applicants because more employers are cutting back on tuition reimbursement programs. And of course, for those out of work, they may not be able to afford a part-time program.”

Other colleges and universities are modifying existing programs or developing new programs to meet the demand of busy executives looking for that extra edge. The University of Richmond is experimenting with two examples of innovation.

One unusual element of its newly revised MBA curriculum is the International Residency. UR students combine class meetings on campus with travel to a location outside the U.S., where they work on consulting projects for an actual overseas firm. This approach gives students real-life experience in interacting and doing business with executives from other countries. According to Carol Lawrence, associate dean for Graduate Studies in Business at the University of Richmond, “When we ask students for feedback (on the International Residency program), they use words like fantastic and awesome.”

Another innovative program at UR is the Mini MBA, an intensive 14-week program for high-potential managers and professionals. This Mini MBA is a non-credit program that provides a practical foundation in current business theory practices. Classes meet one night per week and are taught by UR’s regular full-time faculty. “The structure of the program is designed to give participants a sense of the look and feel of the full MBA, and to introduce key concepts from each of the areas covered in the Richmond MBA program,” says Lawrence.

A hot topic in today’s business schools is ethics. Given the recent media coverage of some of the largest corporate accounting scandals in history, you may think that business schools stopped teaching ethics altogether. Yet the fact is all business schools have ethics as a core part of the curriculum, and in light of recent events, schools have taken that focus one step farther. Take Marymount University for example. This distinguished northern Virginia institution has a unique focus on ethics. For one thing, the discussion of ethical issues is a vital part of each course, along with a required course titled “Ethical Issues in Business and Society” and an elective titled “Ethics in the Information Age,” which is strongly recommended.

Marymount also has a full-time ethicist on the School of Business faculty. Jane Uebelhoer teaches ethics courses, participates in seminars and is also an associate professor in the Legal Administration and Health Services Care Management Department.

Finally, Marymount University’s Center for Ethical Concerns provides a forum for the discussion of ethical concerns. Through a series of conferences, lectures, seminars and workshops, the Center provides opportunities to explore a myriad of ethical issues as they relate to today’s business environment. The center also sponsors an annual ethics case study competition, giving students an opportunity to display critical-thinking and ethical decision-making skills.

Competition is fierce among business schools, and with the recent state budget cuts taking a greater toll on Virginia’s institutions of higher education, schools find themselves in a position of having to do more with less money. In fact the budget shortfall is forcing many colleges and universities to scrap certain programs altogether and focus on key niche areas that better serve the community.

With competition fierce in the business school marketplace, some universities are taking a look at the competition and tailoring their programs accordingly. At James Madison University in Harrisonburg, for example — not far from a nationally recognized MBA program at nearby University of Virginia’s Darden School — it decided not to offer a full-time MBA program. Instead, JMU opted to concentrate on the many part-time students in the Shenandoah Valley, and more recently on an online MBA program focused on attracting national and international applicants. “Our online MBA program is the first and only program of its kind in the country,” says Dr. Kenneth D. Bahn, director, MBA programs and professor of marketing at JMU. “It is an MBA with a concentration in information security. The type of person we hope to produce will become a liaison between the technical folks and senior management.”

When you make the decision to return to school for a business degree, don’t limit your search to just traditional business schools. There are many accredited liberal arts facilities that offer business and management programs, too. Sometimes these programs are non-degree programs that offer the basics in a shorter period of time. Other times, the programs are designed for part of the learning in a classroom setting and part can be done online.

Given the fact that there are many choices, how do you decide? Business programs vary by region, so you many want to start with those institutions offering programs near you. Fortunately, no matter where you live in Virginia, you have access to a wide range of higher-ed programs. Many colleges and universities have set up satellite campuses all over the state. For instance, Averett University has its main campus in Danville, which is accredited in associate’s, bachelor’s and master’s degree programs. However, you can attend one of their graduate and professional studies programs in Richmond, Virginia Beach or Newport News locations.

Some schools, like Regent University, have been offering their programs via the Internet for quite some time. “Half of our MBA students are completing their degree online,” says Mulford. “Not only is online education more convenient, it also gives the students a sense on how to work together as a team via the Internet, much the same way that businesses today operate.”

One of the most important considerations is whether you really need a degree or can you get by with a certificate? If you are interested in a degree, be it an associate’s, bachelor’s or master’s, plan on a major time and workload commitment (especially for an MBA). On the other hand, a certificate program might provide you with the necessary skill sets in a much shorter period of time and for much less money.

An area you don’t want to overlook is the fine network of community colleges that Virginia has to offer. A community college will generally be less expensive and can offer a rich diversity of students and faculty. The mix of students runs the gamut, from 18-year-olds to older students, even retirees, returning to upgrade their skills in a less competitive environment. “Everybody comes to a community college – the old, the young, the ones who want to improve job prospects,” says Dr. Linda Rice, dean of work force development at Tidewater Community College, serving several locations in in Hampton Roads. “The exciting part is that someone just out of high school may be sitting next to a 55-year-old who wants to change careers. The benefit of a classroom situation like this is that a lot of learning occurs across generations.”

Return to Virginia Business - January 2003