Due to the growing quantity of inquiries about the corporate MBA programs it is necessary to understand limitations of this format very well. Although it can provide good results for the company and for the participants, it is always important to always take into account business goals of the company and to choose the educational program proceeding from these goals and not a fashion for formats. The article of Stockholm School of Economics is dedicated to discussion of the issues of formation of corporate educational programs and provides definition and evaluation for one of the formats, corporate MBA programs. It offers an example of implementation of a corporate educational program that combines the format of corporate MBA and adaptation of the program to needs of the clients.
First of all, Stockholm School of Economics Russia is known for its open Executive MBA programs. That is why many of our corporate clients turn to us with an inquiry for corporate MBA programs.
In such inquiries we see two main goals pursued by companies:
• improvement of the overall level of managerial knowledge of participants;
• additional motivation of the program participants in the form of MBA certificate.
In our opinion, such setting of goals does not allow evaluation of efficiency of investment of company's money in education of employees fully. Of course, increase of the overall level of knowledge and creation of additional motivation has an effect. However, they do not allow integration of development of participants with development of the company. Only bearing in mind business goals of the company it is necessary to guarantee that the educational program will contribute not only to development of employees but also to development of the company in general. The format of the program in case of such formulation of issues becomes a consequence but not a subject of discussion.
One of the possible formats of education of the company is represented by corporate MBA programs. Dean of Stockholm School of Economics Russia Anders Liljenberg told us about such programs, their possibilities and limitations in his interview.
E.T.: What is the attitude of Stockholm School of Economics to corporate MBA programs?
A.L.: Let us start from the fact that learning under EMBA program ends with granting of the degree of master of business administration and this is not a mere sound.
First of all, ЕMBA is an academic degree. To obtain this degree it is necessary to observe a number of commonly accepted academic criteria. First of all a certain level should be observed in what deals with the scientific nature of the knowledge conveyed and the process of knowledge conveying. Research results in universal knowledge, which means that the program cannot have an extremely narrow specialized nature. Learning in the framework of such program implies summing up of knowledge from various areas by definition.
Second, ЕMBA, like the name implies, is a program in the field of business administration, which means that the main place in the educational plan should be given to such subjects as marketing, human resources management, accounting, financing, strategy and so on.
Third, the very name of the program (executive) implies that it is intended for people with a significant experience of work and knowledge of business to have something to rely on during learning in the framework of the program. An additional advantage of Executive MBA is a possibility of exchange of experience thoughts and ideas among the participants. This is a synergy effect because in a group of 30 people with managerial experience of every participant of not less than five years a common experience of the group amounts to not less than 150 years.
Corporate MBA programs differ from open MBA programs only by composition of the group by definition. This means that all participants of corporate MBA program are employees of one organization. A serious change of the content and the format of a corporate MBA program always raises a question to quality of obtained MBA degree and the value of the certificate. We value reputation of our ЕMBA programs and do not support the use of this abbreviation in adapted corporate programs.
Corporate MBA programs that correspond to the international MBA standard may yield good results but their implementation is connected with several difficulties.
First, students of corporate programs have the same experience to a certain extent, which does not make the participants very inclined to learn from each other, unlike it happens in case of learning in the framework of open MBA program.
Another difficulty is the fact that "universal" nature of knowledge connected with obtaining of an academic degree often contradicts the wish of a company to obtain specific knowledge in the field of its activities.
The company that arranges the program sometimes exerts such a strong influence that it is not easy to guarantee quality of education. For example, objectiveness of a check of knowledge sometimes leaves much to be desired.
E.T.: Are there corporate MBA programs in Stockholm School of Economics Russia today?
A.L.: At present, Stockholm School of Economics Russia does not have MBA programs but in the past we have had such program for YUKOS. Many companies turn to us with inquiries for an MBA program but finally choose adapted corporate programs without obtaining of master degrees but adjusted to their needs and business tasks to the maximum extent. The experience of the program that we conduct for RZD is interesting from this standpoint. There we enable several best students of the corporate program to study under EMBA program in the second year and thus to claim a master degree and we count their learning in the framework of the corporate program as the first year of education under EMBA program, which are similar in many ways (note of E.T. — additional information about the corporate program of RZD is in the insert).
E.T.: What are advantages of learning of the key employees in the framework of open ЕMBA programs for companies?
A.L.: It is necessary to understand that EMBA program is not for everyone and not everyone can cope with it. A potential student should wish to receive such certificate first of all and the company should be able to choose the school that teaches him correctly.
Students not only obtain knowledge and establish useful relations when they send people to study to such program but the company also proves seriousness of its investments in human capital. Raising of wages is one thing and giving a possibility to people to study under EMBA program is quite a different level of investments in people. Besides the already mentioned new knowledge and skills, experience and relations and additional motivation of people the company also received a possibility to reinvent its strategy and activity in the light of what is said during the classes.
This means that for a good student such program is a kind of uninterrupted consultation during which he analyzes activity of the company and looks for the ways to correct the situation and new development opportunities.
E.T.: What would you advise to the companies that develop corporate educational programs for the managerial staff?
A.L.: First of all, do not grudge the time to understand of what you should teach people exactly. Which knowledge and skills will help them in fulfillment of the business tasks set for the company. The business school that you choose should be able to help you to find out your real needs for education.
We always recommend consideration of education of employees in the framework of the general development strategy of the company. Otherwise we risk choosing the format of education at expense of adaptation to certain business goals of the company. This leads to a loss of orientation at business of the company ant to decrease of motivation of participants of the program. The only way to maintain the motivation is only work with certain examples and tasks of participants.
When a draft program is ready it is necessary to select students on the competitive basis and with participation of a business school. Do not forget to form correct expectations of the future students regarding the education!
We often propose our partner companies to consider adapted corporate programs for the employees who need development in the framework of existing business areas or functions. For separate employees we recommend consideration of education under open EMBA programs. The determining criteria for such employees are change of the area of business, launch of a new business line and promotion in rank with a significant broadening of the managerial role.
Take the choice of the school that will teach you very carefully but when you make the choice, rely on it completely!
An example of corporate educational program of RZD holding and Stockholm School of Economics (author • director of the program candidate of economics sciences I. I. Dukeov)
On October 18 of 2009, President of RZD Vladimir Yakunin opened the solemn ceremony of handing of certificates out to graduates of the corporate educational program of RZD (Figure No. 2). The certificates were handed out to the first group of students at the Oktyabrskaya Railway who started the education in November of 2008.
In his speech Yakunin said, "Today, we and you are present at handing out of certificates to the first graduates of the corporate educational program of RZD and this shows that the company has laid the foundation of the corporate university. University means not only walls but a system of education. First of all, these are the people who convey their knowledge to the others and this is a united team aimed at development of business." Overall, 35 people, top and middle-rank managers, were recruited to the program and 33 of them graduated from the program successfully.
People in RZD understand perfectly well that modern market dictates special requirements to leadership qualities of managers. Implementation of the program of development of leadership qualities of the students and ability to create themselves anew is done both through selection of students according to results of a systematic evaluation of their leadership potential and through innovative development of business qualities and managerial knowledge in the entire process of learning in the framework of the program of Stockholm School of Economics oriented at business tasks of the holding.
RZD holding not only passive watches how the managers study but also takes an active part in the process of education. Top managers of the company who have a rich practical experience are used as invited lecturers of the program. Teaching activities of top managers of the company both directly in the process of the basic educational modules of Executive MBA and through supervision of graduation certificate projects with their acceptance for defense within examination commissions provides for systematic transfer of managerial knowledge and the real practical experience by managers of the company to students of the program in the mode of direct contact and dialog.
According to results of the program the best students of the corporate program of RZD holding will receive a possibility to continue the learning in the framework of Russian-language EMBA program of Stockholm School of Economics and to claim an academic degree. Their learning under the corporate program will be counted as the first year of education.
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ABOUT THE COMPANY
STOCKHOLM SCHOOL OF ECONOMICS IN RUSSIA
INDUSTRY
International business school
SPECIALTY
Executive MBA and corporate educational programs
TELEPHONE
+7(495) 9810217 .+7(812) 320 48 00
E-MAIL
terukov@sserussia.org
WEBSITE
www.sserussia.org
DESCRIPTION OF THE PORTFOLIO OF SERVICES
- Executive MBA programs in the English and Russian languages
(15 educational modules of five days in two years) • Middle-term and long-term programs for corporate clients adapted to business goals of companies
BEST PROJECT
Business academy NOVARTIS, corporate educational program of RZD holding
ACCREDITATION AND AWARDS
Accreditation OF EOUIS – European system of accreditation of higher educational institutions that specialize in management and business administration. Executive MBA programs of Stockholm School of Economics in Sweden and in Russia are leaders in the rating of Financial Times among business schools of the Northern Europe
AGE
In Russia since 1997, in Sweden since 1909
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YEVGENY YEVGENYEVICH TERUKOV
Corporate programs development director
Stockholm School of Economics Russia
Tel- +7' (812) 320 48 00
E-mail: Terukov@sserussia.org
Website www.sserussia.org
EDUCATION
MBA
EXPERIENCE OF WORK
Seven years – experience of managerial activity, three years – his own consulting project, three years – programs director in Stockholm School of Economics
PROFESSIONAL ACHIEVEMENTS
1998 – member of managerial team (marketing director of G3) that launched Russian Standard Vodka brand in Russia, 2000-2002 – member of the managerial team (commercial director, managing director) for launch and breaking even of glass bottle factory Veda-PAK (Leningrad Region), 2008-2009 – launch and implementation of some successful corporate programs for clients of Stockholm School of Economics Russia
FIELD OF PROFESSIONAL INTERESTS
Organizational development, efficient interaction (in-company communications, external communications management), organizational education
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IGOR IVANOVICH DUKEOV
EMT area principal, program director of Stockholm School of Economics
Tel:+7 (812) 320 48 00
E-mail: dukei@sseru.org
Website: www.sserussia.org
EDUCATION
Candidate of economic sciences
EXPERIENCE OF WORK
Stockholm School of Economics, since 1999 his own consulting business in the field of marketing research and strategic consulting