Category: Opinion

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Why do Business Programs Face Declining Enrollment?

By Dr. Vlad Krotov

Business programs may face enrollment issues for a variety of reasons.  These issues can stem from factors within the business school itself, changes in the external environment, shifts in student demographic or educational preferences, or a combination of all these factors. 

Some common reasons for enrollment challenges include:

    • Program Relevance: If a program’s curriculum does not align with current industry trends, potential students may opt for programs that offer more relevant and marketable skills. For example, many business programs today incorporate modules and courses related to Artificial Intelligence (AI) – a very powerful and potentially disruptive technology across all major industries. 
    • Market Saturation: In some cases, there might be an oversaturation of similar programs in the market, leading to stiff competition for enrollments. For example, the market for MBA programs is known to be highly saturated in major cities in the United State. In an attempt to gain easy access to a large pool of working professionals, a variety of public, private, in-state, out-of-state, or even international business schools offer their MBA programs at various price points within all major cities in the US. 
    • Lack of Awareness: If a business school fails to effectively market its business programs or communicate their unique value, potential students may not be aware of them. To attract potential students, business programs need to be known for something (e.g. value, entrepreneurship focus, international accreditation, alignment with professional certifications, etc.) It is for this reason that accreditation agencies, such as AACSB, require each accredited business school to have a unique and distinct mission statement.
    • Quality Perceptions: If a business program is perceived as lower in quality or less prestigious than others in the field, it could lead to lower enrollments. Accreditation by an international accreditation agency, such as AACSB, usually addresses most quality concerns among students.
    • Location: The location of an institution can influence enrollments. Programs situated in less desirable or inaccessible areas might struggle to attract students. For example, many business schools located in remote, rural areas have problems attracting students simply because there are not too many people there who are both willing and qualified to join a graduate business program. Many of these programs have no choice but to go online or open branch campuses in major population areas. 
    • Changes in Demand: Rapid shifts in industry trends or technology can lead to shifts in demand for certain programs, leaving some academic offerings less appealing. The rapid advancements in Artificial Intelligence technology, for example, can increase demand for Computer Information Systems programs and decrease demand for accounting degrees due to concerns that simple accounting functions can be automated by AI. 
    • Economic Factors: Economic downturns or changes in job markets can influence students’ decisions to pursue certain programs that they perceive as having better job prospects. Usually, economic downturns are negatively correlated with university enrollment. During economic downturns, workers may choose to go to school to upgrade their skills or to change their careers. Economic downturns within a specific industry, such as technology, can cause students to turn away from business majors pertaining to that industry.
    • Inadquate Pricing: High tuition fees or other associated costs can discourage potential students from enrolling in certain business programs, especially if they believe the return on investment might not be sufficient. Regardless of how valuable, prestigious, and unique a business program may be, it must be competitively priced or students may not enroll. 
    • Competition: Competing business schools offering similar or more attractive programs can draw students away from a particular program. Some markets are characterized by “hypercompetition” among business schools. For example, more than 60 local, regional, and international institutions offer MBA programs in the United Arab Emirates (UAE) – a country with roughly 10 million people. 
    • Demographic Changes: Changes in demographics, such as declining birth rates or shifts in the age distribution of potential students, can impact the number of students seeking higher education in general. One area of the United States with serious demographic problems is the Midwest. Business schools and universities in the Midwest are putting more emphasis on attracting international students in order to combat the negative effects of declining birth rates on student enrollment. 
    • Institutional Reputation: A business school’s overall reputation can affect enrollments in its programs. If an institution faces negative press or widely publicized ethical controversies, this might lead to decreased interest among students. Revocation or suspension of accreditation is one of the worst things that can happen to a business school from a publicity standpoint. Press coverage of incidents like that is usually extensive. Students will often avoid such schools for fear that their diplomas will not be recognized by employers. The reputation of an “uncredited school” will haunt the business school for years even if accreditation is reinstated shortly after the incident. 
    • Online Education: The growth of online education and the availability of remote learning options can lead to increased competition among business programs. Business schools that are slow to adapt to online learning or fail to administer online business programs in a way that supports the mission of the business school may soon be left behind by more agile competitors offering attractive online options to students.

To address enrollment issues, business schools might need to undertake various strategies such as conducting market research, updating program offerings, improving marketing efforts, enhancing program quality, and adjusting tuition and financial aid options. 

Prior to implementing any changes, it is important to understand the specific reasons for enrollment challenges. Academic consultants and market research firms are hired by many business schools to better understand the factors impacting enrollment and devise strategies and action plans to resolve the issues.

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Recruitment of Diverse Faculty: Debunking the Myths

By Dr. James Mackin

Over the last several decades, although the percentage of total college enrollment attributable to underrepresented minorities has been rising steadily in the United States, the percentage of underrepresented minorities among the professoriate has remained relatively stagnant. Currently, the percentage of underrepresented minority faculty at four-year colleges and universities is less than half the percentage of underrepresented minority undergraduates and about a third of the percentage of underrepresented minorities in the U.S. population.  Further, the percentage of underrepresented minorities decreases as faculty move up the ranks from assistant to associate to full professor.

Studies have shown that underrepresented minority faculty have positive direct and indirect impacts on student outcomes . For example, in a survey of higher education institutions across the country conducted by the Bernard Hodes Group, 92% of minority students and 86% of non-minority students replied “yes” to the question of whether or not minority professors had a positive impact on their educational experiences.  This clearly indicates that a diverse professoriate is good for all students, not just underrepresented minorities.

One of the biggest barriers to recruitment of diverse faculty that I have faced as an administrator was the proliferation of myths related to the recruitment and retention of diverse faculty. Common myths are as follows:

    • Elite private institutions that can afford to pay higher than average salaries are getting all the underrepresented faculty candidates.  In fact, the data show that there is no relationship between the diversity of the faculty at an institution and the institution’s wealth.  To further emphasize the point, about 50% of all African American faculty in the U.S. are employed at historically black institutions, which tend not to be the richest of institutions. 
    • Underrepresented faculty are not interested in us because of our geographic location.  While it is true that geography does play a role in determining faculty diversity at an institution, many institutions that do not seem to have any advantages from the standpoint of geographical location are experiencing success in attracting underrepresented minority faculty to their campuses. 
    • No amount of focused effort will make a difference in attracting underrepresented minority faculty candidates to the campus.  In fact, the data show that institutions that engage in systematic and purposeful underrepresented minority faculty recruitment efforts are successful in diversifying their faculty.

The bottom line is that the data are consistent with the notion that underrepresented minority faculty are attracted to campuses for the same reasons as majority faculty.  If a campus is purposefully reaching out to prospective underrepresented faculty, chances are the campus will be successful in recruiting these prospects regardless of any perceived recruitment advantages or disadvantages the institution might have. 

References

Bernard Hodes Group, PhD Project: Student Survey Report (2008), http://www.phdproject.org/en/news-events/~/media/Sites/PhDProject/news/Students_Report_6-9-08.pdf, Hodes Research.

Does Diversity Make a Difference? Three Research Studies on Diversity in College Classrooms (2000), American Council on Education and American Association of University Professors, Washington, DC. 

Espinosa, Lorelle L., Jonathan M. Turk, Morgan Taylor, and Hollie M. Chessman (2019) Race and Ethnicity in Higher Education: A Status Report. Washington, DC: American Council on Education.

Kim, Y.M. (2011) Minorities in Higher Education Status Report, Twenty-Fourth Status Report, American Council on Education, Washington, DC.

Mackin, J.E., Wright, I. and Wislock, R. (2008) Recruitment and Retention of Underrepresented Faculty, Staff and Students at a Traditionally White, Rural Institution of Higher Education, 21st Annual Conference on Race and Ethnicity, Orlando, FL.

Smith, C.G., Sotello Viernes Turner, C., Osei-Kofi, N., and Richards, S. (2004) Interrupting the Usual: Successful Strategies for Recruiting Diverse Faculty, The Journal of Higher Education, Volume 75, Number 2, March/April.

University Leadership Council (2008) Breakthrough Advances in Faculty Diversity: Lessons and Innovative Practices from the Frontier, The Advisory Board Company, Washington, DC.

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Does Tenure Benefit the Quality of Education?

By Dr. Vlad Krotov

Tenure is a system in academia where after a probationary period, typically six years, a faculty member is granted permanent employment in his or her academic unit. Dismissal of a tenured faculty member can only occur for just cause (e.g. a serious misconduct) or other exceptional circumstances (e.g. budget cuts leading to closure of his or her academic unit). 

Standards for tenure are usually quite high and difficult to attain, since an institution is making a large, long-term investment into a faculty member who is offered tenure. It has been estimated that a single tenured, senior professor costs an institution millions of dollars over his or her entire career span at the university. 

Academic tenure is a coveted dream for every aspiring academic. It is well known that tenure is one of the main benefits of being a professor. Many successful business professionals are drawn to academia because they are able to obtain well-paying jobs that are locked in “for life”. 

Tenure has come under intense scrutiny in recent years. According to some critics of tenure, the system no longer serves its primary purpose of protecting academic freedom. In most cases, tenure protects complacent and unmotivated academics rather than those with controversial views.

Indeed, tenure can have both positive and negative effects on the quality of education within an academic institution. Here’s how tenure can potentially benefit the quality of education:

    • Academic Freedom: Tenure provides professors with job security, which allows them to express controversial or unconventional ideas without fear of retribution. This academic freedom can lead to more diverse and intellectually stimulating discussions and research.
    • Long-Term Commitment: Tenured faculty members have a long-term commitment to the institution. This stability can lead to greater dedication to teaching and research, as they are invested in the success and reputation of the school.
    • Research and Scholarship: Tenured professors have the freedom to dedicate significant time to research and scholarship. This can lead to advancements in knowledge and expertise, which can enhance the quality of education through up-to-date and cutting-edge teaching materials.
    • Mentorship and Experience: Tenured faculty members often have more experience in academia. They can serve as mentors to junior faculty and bring valuable expertise and perspectives to the classroom.
    • Institutional Reputation: Tenure can attract high-caliber faculty who seek job security and academic freedom. This, in turn, can enhance the institution’s reputation and attract top students.
    • Focus on Student Learning: With job security, tenured faculty may have less concern about pleasing administrators or short-term outcomes, allowing them to prioritize student learning and development.

However, that tenure can also present challenges and potential drawbacks:

    • Lack of Accountability: Tenure can create a sense of job security that might lead to complacency or reduced effort in teaching and research. Some argue that the lack of accountability may negatively impact the quality of education.
    • Resistance to Change: Tenured faculty may be less willing to adopt new teaching methodologies or adapt to changing educational needs since they are protected from dismissal based on performance.
    • Difficulty Removing Ineffective Professors: In some cases, the tenure system can make it challenging to remove underperforming faculty members, which may negatively impact the overall quality of education.
    • Cost: Tenured faculty members, especially those with extensive experience, tend to have higher salaries. This can put financial strain on institutions and limit their ability to hire new faculty or invest in other resources.

In conclusion, tenure can positively impact the quality of education through academic freedom, research focus, mentorship, and long-term commitment. However, it also poses potential challenges that institutions need to address through effective performance evaluation, professional development opportunities, and a balanced approach to faculty hiring. 

It should be noted that a business school is not required to have a tenure system in order to become accredited. Leading accreditation agencies, such as AACSB, have accredited numerous business schools and universities that do not grant tenure to their faculty members. Accreditation agencies do require an accredited school to have a formal and effective appraisal and promotion system that aligns with their mission and goals.

Our consultants at Accreditation.Biz, a leading accreditation consultancy, have extensive experience managing the tenure process in accordance with international accreditation standards. Our Online Tenure and Promotion Processing System (TAPPS) is a simple, easy-to-use online application for collecting, processing, and managing faculty tenure and promotion data. We will help your business school build a tenure system that is transparent, fair, efficient, and supportive of the goals of your academic unit. With our process knowledge and technical solutions, you can maximize the chances that your tenure systems retain quality education and enhance student learning. 

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12 Characteristics of a Good Mission Statement for a Business School

By Dr. Vlad Krotov

A good mission statement for a business school

A business school’s strategic planning begins with a good mission statement. Having a formal and sustainable strategic planning process is a formal requirement of all major accreditation agencies for business schools. For example, EQUIS standards require every accredited business school to “define the School’s mission and explain how it relates to its identity.” (EQUIS Standards & Criteria, Chapter 1, 2023). Similarly, AACSB requires that every accredited business school should “articulate a clear and focused mission for the school” as a part of its strategic planning process (AACSB Guiding Principles and Standards for Business Accreditation, Standard 1, 2023). 

A good mission statement is essential for every business school’s survival and success in the face of growing competition in business education. A mission statement serves as a concise and impactful declaration of a school’s purpose and core values. It should effectively communicate the organization’s reason for existence, its target audience, and its guiding principles. 

In order to succeed, a business school needs to be known for something. Almost everything that the school does and everyone that the school is affiliated with should contribute to this reputation. Without this focus and distinctiveness, your business schools will be lost among numerous other “me too” schools, eventually suffering declining enrollment and shortages of essential resources.

Here are some characteristics of a good mission statement for a business school:

    1. Clear and Concise: A good mission statement is clear, straightforward, and concise. All stakeholders should be able to understand it, including students, faculty, staff, and employers. A mission statement should not  more than a few sentences. 
    2. Specific and Focused: The mission statement should clearly outline the school’s primary purpose and focus. It should avoid being overly broad, generic, or vague. Being “everything to everyone” is one of the worst strategies a business school can pursue. 
    3. Inspiring and Motivating: A mission statement should motivate and inspire all stakeholders. It should create a sense of purpose and passion among students, faculty, and staff. 
    4. Timeless: Business “buzzwords”, educational technologies, and pedagogical “fads” come and go. Strategies and goals of a business school may change over time too. In spite of all the changes in the external and internal environment, a good mission statement should remain relevant and timeless. It should provide a sense of continuity and stability for the school and serve as the most important foundation for all strategic decisions.
    5. Unique and Differentiating: The mission statement should clearly highlight what sets your business school apart from thousands of other business schools across the globe. It should emphasize the organization’s unique value proposition to students. Being a “me too” business school is a sure path to mediocrity and declining enrollments. 
    6. Realistic and Achievable: While the mission statement should be aspirational, it should also be grounded in reality. Not everybody can be a Harvard Business School, serving the needs of executives from Fortune 500 companies. This is okay.  Not everybody wants to commute in a Mercedes or Ferrari. People also need affordable and reliable Toyotas and Fords that get them where they want to be. 
    7. Aligned the Mission of the University: The mission statement should align with the university’s vision, mission, values, and goals. It should reflect the principles that guide decision-making and actions within the broader organization that the business school is a part of.
    8. Student-Centric: A good mission statement should focus on delivering value to the school’s target audience. It should emphasize the impact the school aims to have on its students and the broader community that it serves.
    9. Memorable: A memorable mission statement is more likely to be embraced by all the stakeholders. A creative statement with strong language and imagery can make it more memorable. Business schools should stay away from confusing “academic talk” or business jargon. The mission of the business school should be recited or explained by every faculty member in his or her own words. Reviewers from accreditation agencies often ask faculty whether they can explain the mission of their business schools.
    10. Inclusive: The mission statement should be inclusive, embracing all the relevant stakeholders: students, faculty, staff, alumni, and employers.
    11. Communicable: A good mission statement should be easily communicated across all levels of the business school. It should be accessible and relatable to everyone involved with the school. Each business school should invest time and resources in spreading awareness of its mission statement. 
    12. Measurable: Although a mission statement is not a strategic plan, it should be possible to evaluate the organization’s progress and alignment with its mission over time. Lengthy, broad, generic, and vague mission statements make such evaluation difficult. 

Crafting a compelling and effective mission statement often involves lengthy collaboration and reflection among key stakeholders to ensure that it accurately represents the organization’s identity, aspirations, and principles. Unfortunately, many business schools do not have anyone formally in charge of the strategic planning process. Mission statements are often drafted or revised just before accreditation or reaccreditation report submission deadlines.

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Top 10 Reasons for Majoring in Business 

By Dr. Vlad Krotov

Business education has been under a lot of scrutiny in recent years. There have been criticisms of business programs over their high costs, outdated curriculum, and inadequate opportunities for meaningful careers after graduation.

Still, many students choose business as their undergraduate major. In fact, in many universities, business majors comprise the largest or one of the largest groups of students. Students choose to major in business for a variety of reasons, as it offers several attractive advantages and opportunities. Some of the common reasons why students opt to major in business include:

    1. Versatility: A business degree provides a broad foundation of knowledge and skills that can be applied to various industries and job roles. Graduates can pursue careers in finance, marketing, human resources, operations, entrepreneurship, and more.
    2. Job opportunities: The business field offers a wide range of job opportunities with potential for growth and advancement. Graduates can enter diverse sectors, including corporate, nonprofit, government, and startup environments.
    3. High earning potential: Business-related professions often come with competitive salaries and attractive benefits, especially as individuals progress in their careers and take on leadership roles.
    4. Entrepreneurial aspirations: Some students with entrepreneurial ambitions choose to major in business to gain the necessary knowledge and skills to start and manage their own businesses.
    5. Practical skills: Business programs typically focus on real-world problem-solving, decision-making, and critical thinking, which are highly valuable in various professional settings.
    6. Networking opportunities: Business programs often provide ample networking opportunities, enabling students to connect with industry professionals, potential employers, and like-minded peers.
    7. Flexibility: Business degrees can be flexible in terms of study options, allowing students to choose from various specializations and tailor their education to align with their interests and career goals.
    8. Global perspective: Business programs often emphasize international business practices, helping students develop a broader understanding of the global economy and cultural diversity.
    9. Influence and impact: Business leaders have the potential to drive significant change and make a positive impact on their organizations and communities.
    10. Interdisciplinary nature: Business intersects with many other fields, such as economics, psychology, technology, and law, providing opportunities for cross-disciplinary learning and application.

It’s important to note that while a business degree can offer numerous benefits, students should also consider their personal interests, strengths, and long-term career goals when choosing a major. The decision should be based on a thoughtful consideration of individual aspirations and alignment with one’s passions and abilities.

In addition, students should always choose to study business at an accredited business school. Business programs that are accredited by well-known accreditation agencies such as AACSB, EQUIS, ACBSP, or AMBA are more likely to deliver on all these promises.

Certain business accreditations are granted at the program level, so a business school may have programs that are not accredited. The prospective student should always check whether the program that he or she is interested in is accredited by AACSB, EQUIS, ACBSP, or AMBA.