Rejuvenating MBA

MBA has a history of more than 100 years, since the start of the first MBA in 1908 by University Graduate School of Administration (now Harvard Business School). MBA was created in response to the growing demand from business for a formal course for business managers required to man the growing industrialisation in the US.

The pioneering MBA course was of two years and attracted 80 students who were taught by 15 faculty members.

MBA has been evolving since then. It has a different format in different countries. Today, it again calls for a big change. Its core has remained the same for the last 50 or 75 years.

We spell out the challenges it faces, so as to know how to revamp it.

1. To begin with, the course emphasized a combination of soft skills and hard skills. These days there is a need for more hard skills.

This is seen in the emergence of degrees such as master’s in finance, master’s in data science and so on.

2. It is believed that the added value from MBA comes from critical thinking and analysis. There is also the ability to synthesize and connect the dots. The inputs of basic accounts, 4Ps of marketing, MBO etc. are alright and can be mastered.

3. The entry level MBAs do not match the industry requirements. The MBAs from elite institutions have an advantage as they undergo a rigorous selection process and have a higher perceived caliber.

4. Apart from analytical and synthetic skills, industry also require skills such as data visualization, programming in R and Python, Excel, PowerPoint and so on. It is difficult to provide all these skills in a single programme.

5. Each business graduate must be digitally and technologically savvy. There should be courses on AI, cybersecurity, geopolitical environment, government and business and so on. The distance between business school and public administration schools is reducing.

6. Residential business schools should allow access to recruiters and social network.

The business schools should adopt case-driven method where students are encouraged to be inside in business scenario to find a solution to the problem. The students are in driver’s seats as they tackle the problem. The faculty members simply ask the questions and facilitate the discussion.