TESTED BY TIME, Grigory Milov
Vedomosti (Moscow), May 13, 2014
TESTED BY TIME, Grigory Milov
Anna Izmailova, head of market communications of Stockholm School of Economics Russia (the 37th place among open programs and the 30th place among custom programs) reported that Russian employees and clients of the school participated in polling of FT.
In new rankings of Executive Education programs of FT leaders remained the same but changed were noticeable among providers of open programs.
Financial Times composed a ranking of Executive Education programs for the 17th time. In 2014, 70 open and 80 corporate programs of the best business schools of the world participated in it. There was no change of leaders: for the third year in succession the first place in the category of open programs was occupied by Swiss IMD and in the category of corporate programs American Duke Corporate Education became the first for the 12th time in succession.
There are corporate education programs in majority of big business schools. As a rule, these are short-term programs after graduation from which students do not receive bachelor or master degree. It is common to divide such programs into two categories: open (anyone can participate in them) and custom (they are prepared for a certain employer). The ranking is composed taking into account composition of participants and lecturers, opinions of students, as well as international activity of the school.
There are not very many surprises in the upper part of both tables.
HEC Paris has had the second place in the category of corporate programs for the seventh year in succession. IESE became the third for the third year in succession. In any case, in 2014 the French school was preferred by clients in four categories simultaneously. It was marked for design of programs, possibility to acquire new skills, achievement of the goals set by students and value for money.
Swiss IMD heads the ranking of open programs for the third year in succession. It took the first place in three corporate categories and in five of the six categories evaluated by clients.
Sixty percent of the programs that participated in the ranking reported to FT that last year they managed to improve financial performance, for example, to increase revenue. Forty-one percent of the clients plan to increase expenses on Executive Education programs. A year ago, percentage of such clients was 4% smaller. In any case, this does not promise significant market changes to participants of the ranking. The overwhelming majority (90%) of corporate clients is going to keep ordering services from the same providers that they use now. along with this, in 95% of cases clients turn to the business schools tested by time also for new educational programs.
In any case, quietness may turn out to be shady. In the last decade, business schools learned to work conservatively but absolutely different time began now. Last year, revenue of business school Said of Oxford University from custom programs grew from $9 million to $15 million. Andrew White, dean of Executive Education programs, said that growth was so powerful that the school had to decline orders "to the right and to the left." Like in other segments of the world economy, growth happens primarily on account of emerging markets. Whereas in 11 biggest business schools of the US aggregate revenue grew only by 5% in two years and in Western Europe it grew by 3.2% on average, for example, in Latin America participants of the rating of FT grew by 13% in 2012 and by 17% in 2013. The major part of the growth was obtained by local providers: so far, prices of educational services in Latin American counties is lower than in the US and Western Europe and this means that it is not simple for foreign providers to compete in these countries still, FT says.
The programs were estimated according to 15 criteria, ten of them were estimated by clients of the programs and remaining five (for example, share of international clients and participants of programs, partner relations with other schools and composition of academic teaching staff) were presented by business schools.
Anna Izmailova, head of market communications of Stockholm School of Economics Russia (the 37th place among open programs and the 30th place among custom programs) reported that Russian employees and clients of the school participated in polling of FT. She emphasizes that corporate programs of the school are oriented at big clients (Sberbank, RZD, Gazpromneft, Novartis etc) and price of studying in them is higher than the average in Russia. So, last year, revenue of the school grew by 25%.