Perversion of the MBA as a Degree

Can A Sub-700 GMAT Take You Out?

Poets and Quants ran an article, "Can a Sub-700 Take You Out?" that read: "A score of 700 on the GMAT just isn't worth what is used to be. A comparison of the average scores at leading U.S. business schools with ten years ago shows that with the exception of Stanford University’s Graduate School of Business and the University of Pennsylvania’s Wharton School, you’d be within 10 points of the top 7 schools, and ahead of the game for the rest of the top 20.

And while breaking the 700 barrier back in 2003 would secure you a place in the top 92% of test takers, the same score today means you have scored in the top 89%.

It's this kind of perverse logic that corrupts the MBA as a degree.  

Just look at the numbers: (1) top school report average GMAT scores, so even schools with a 700 avg. admit good students with less than a 700 score; (2) not all top 20 programmes average 700 (e.g., from QS TopMBA #6 Columbia 670, #8 Rotman 673 & #16 HEC 630); (3) the term "doomed" implies that you cannot get a good education from programmes outside the top twenty.

Here's an except from the most recent QS TOPMBA Global 200 report: "The top three schools are ...the strongest in terms of students’ average GMAT scores, suggesting that there is a close match between the perceptions of employers and the best qualified MBA students. However, the correlation is far less precise beyond the leading three. ...Columbia, Rotman and Fuqua all make the top ten for employer recognition yet have average GMAT scores of under 700."

Note: The correlation between programme reputation and GMAT score is loose at best; QS equates GMAT score to "best qualified MBA student" (a fallacy); and the average GMAT score in the QS Global 200 was 632 (We're talking about a few points!  Not evident from the quote).

Even more interesting is that GMAC's own data show an inverse relationship between GMAT score & age, as well as discrimination against females.

(1) The highest test scores (by age category) were posted by students of less than twenty years of age: kids. Males of this age averaged 604, while females averaged 597 (though this demographic accounted for only 0.6 % of test takers).

(2) Test scores drop precipitously for both males and females: i.e., inversely correlated with age and presumably attributes associated with age, such as experience, maturity and wisdom. Females: age 20-21 (avg. 572); 24-25 (528); 31-34 (504); 40-49 (449). Women over the age of 21 years averaged less than a 550 score and would likely be excluded from many top MBA programmes.

(3) The number of woman sitting for the GMAT dropped precipitously after the age of 23 years: age 22-23 (N=27K); 24-25 (17K); 26-27 (12K); ... 31-34 (6K).

(4) Women consistently posted lower average test scores within age categories, oftentimes with meaningful differences (e.g., age 26-27: male avg. 571 vs. female avg. 533).

(5) Three countries, the U.S., India and China, accounted for 71% of all GMAT tests taken in the world, with the U.S. accounting for over 90K (of 238K) test takers. India (577) and China (582) significantly outperformed the U.S. (532) on average.

This last observation from the data suggests that the GMAT is largely a U.S convention valued most by those wanting to study in the U.S. and not valued as highly across the globe.

(see Observations on the GMAT)

Otago MBA - QS TopMBA Global 200 Ranking

Otago MBA - QS Ranking

I have written elsewhere that the Otago MBA management team made the decision long ago to design a fully-integrated programme to deliver best value to our students, rather than compete on rankings of spurious meaning (see design decisions and rankings).  Nonetheless, it's useful on occasion to examine how we stack up relative to other prestigious programmes.  Here's an analysis of the QS TopMBA Global 200 Rankings.

The QS TopMBA Global 200 programmes are distributed as follows: 90 are located in North America; 60 in Europe; 35 in Asia/Pacific; 10 in Latin America; and 5 in the Middle East or Africa.

The Otago MBA ranks 32nd in the Asia/Pacific region and is identified as an Emerging Regional MBA programme. We take satisfaction from being included in the QS TopMBA Global 200, but take an even closer look. The Otago MBA:

Is the only MBA programme in New Zealand ranked in the QS Top 200.

Performs well (22nd in the Asia/Pacific region) on average GMAT score (632).  The average GMAT for all QS TopMBA Global 200 programmes is 632.

Averages more years of work experience than all but one other programme in the Asia/Pacific region (10 years).

Averages more years work experience than all but 3 programmes in the entire QS TopMBA Global 200 rankings.  (No North American MBA programme averaged more years of work experience than the Otago MBA.)

Offers a well-designed MBA programme; centered around mature, experienced peers; at a competitive price ($37.4K domestic, $45.2K Int'l) relative to other prestigious schools of business (see INSEAD - $59.5K and Melbourne School of Business - $70K).

 Note: An inverse relationship exists between GMAT score and age (see Observations on the GMAT), making the Otago MBA's performance on these measures even more satisfying.  We choose to emphasize experience/wisdom rather the recency/comfort in taking standardized tests.

 David

An MBA Degree is Essential

GMAC asked business school alumni from graduating classes in the past five decades

(1959-2013) if their MBA or business master’s degree was essential to obtaining

employment and 83 percent said YES.

The Data:

Survey results are based on direct collaboration with 132 business schools in 29 countries and include data for nearly 21,000 business school alumni,

Key Findings:

The vast majority of business school alumni consider their graduate management education a good to outstanding value: 91 percent of graduates from 2010–2013, compared with 95 percent of graduates from 2000–2009, and an overwhelming 98 percent of alumni who graduated from the 1950s through the 1990s.

The vast majority of alumni (83 percent) from the classes of 1959 through 2013 report their graduate management degrees were essential for obtaining employment; and 80 percent of graduate business school alumni attribute their career success to their graduate management degree.

More than 4 in 5 alumni across all graduation years strongly agree that they make an impact at their company (86 percent), are engaged with their work (85 percent), have challenging and interesting work (85 percent), have meaningful work (84 percent), and work for a company that values their skills and abilities (81 percent).

MBAs and other business master’s degree-holders work in a variety of industries, with Finance/accounting and Products and services sectors (each with 20 percent) employing the greatest percentages of alumni surveyed. Among self-employed alumni, more than 3 in 10 work in both products and services and consulting.

Soft skills account for 3 of the top 5 skills that business school alumni use every day on the job. Interpersonal skills are the most frequently used skills, followed by knowledge of general business functions, conscientiousness, managing the decision-making process, and the combined skills of learning, motivation, and leadership.

Read more.... 

The Structure of Knowledge in the Human Brain

Levels of Abstraction in the Brain

Good news.  My coauthor, Melissa Baucus, and I had a neuroscience manuscript accepted for presentation in the Entrepreneurship Division of the 2014 Academy of Management Meeting taking place August 1-5 in Philadelphia, Pennsylvania.

Opportunity Conception: An Analysis of Percept-Concept Structures in the Human Brain

Abstract

We advance entrepreneurial-opportunity research by distinguishing between the external world of episodic experiences + environmental processes, and three levels of abstraction in the human brain: neural coding, percepts-episodic memory and concepts-semantic memory. Percepts enable the entrepreneur to “see” the future (a business venture), while opportunity conception occurs at the semantic-concept level of abstraction.

Percept-concept structures align with neural anatomy and exhibit a general-to-specific, hierarchical and categorical structure, with two characterizations of the semantic-concept space: (1) a feature-encoded pyramid whose base encodes broad concepts and apex represents episodic-specific information; and (2) a smooth semantic-concept (opportunity) space that exhibits multiple gradients tied to similarities (closeness) of concept categories. In short, a common semantic-concept space may exist, with the caveat that this shared semantic space is likely bounded by context. 

We offer nine premises that may inform research questions for understanding how cognition occurs and the percept-concept structures entrepreneurs may possess. From these, we hope, it may be possible to articulate a conceptual framework for the entrepreneurship discipline grounded in what exists in the brain without the imposition of assumptions from economics or other disciplines.

Doing Business in India: Congratulations Melissa

Melissa Barry

Congratulations are in order: 

Melissa has been selected as one of only sixteen NZ scholars by Education New Zealand to receive a scholarship to attend the April 2014, Doing Business in India Programme.  

Education NZ describes this is a two-week programme, delivered by the Indian Institute of Foreign Trade (IIFT) at its New Delhi campus, as "providing an excellent opportunity for postgraduate students in New Zealand to understand the Indian market, trade patterns between the two countries and business opportunities for New Zealand companies in terms of products, services and investment."

They continue, "India’s strong economic growth has sparked the expansion of bilateral trade and economic links...most noticeably in the increasing tempo of two-way high level visits, the growing trade relationship and the negotiations towards a bilateral free trade agreement. There is potential for growth in both goods and services – agriculture products, tourism, education, and consultancy services. New Zealand’s growing Indian community and India’s outreach to its diaspora have also strengthened people-to-people ties." 

Audacious Business Startup Contest

 Audacious Startup Contest launches on 20 March at 6 p.m. in the Hunter Centre. 

 Everyone in the University of Otago and Polytechnic—regardless of major or level of education—is encouraged to enter a business idea in the first round of Audacious. If you don't have an idea but want to be part of Audacious, workshops will focus on venture teams and help students get into a team where they (you) can apply their skills and knowledge. Business mentors will help coach student teams

and everyone gets to go on to the second round.  

Join the fun!  Take advantage of the learning / educational experience!

Informational Evening: invest in your future

Informational meeting

You are cordially invited to join the Otago MBA management team, our current students and alumni for an informational meet and greet this Wednesday, 12 March, 5 pm to 8 pm: drinks and snacks provided. This is an opportunity for potential part-time and full-time student candidates to gain first hand insights into the advantages of pursuing an Otago diploma or MBA degree.  

If you have thought about earning a graduate business degree, get started.  Learn about our part-time (3 to 5 year) programme or consider the benefits of attending full-time and completing your coursework in 9 months. Once you are in our programme, we devote every effort to make your Otago diploma or MBA education one of the most enriching experiences of your life.

David

More Information

RSVP: email rsvp@otagomba.com

Our Otago MBA Graduates

We begin the Otago MBA by selecting the right candidates and then we strive to educate the whole person, with emphasis given to the student's reasoning abilities and character.  The question remains: "What should a graduate of our MBA programme look like?"  We adhere to a well-designed Assurance of Learning (AoL) programme that ties student assessments (course-by-course) to specific learning objects and cumulatively aligns with the following graduate student profile.  

As a professional, we expect our students to demonstrate maturity, experience and self-motivation. They should possess clearly articulated career ambitions; embrace “scary” challenges as growth opportunities; work well independently or confidently alongside seasoned professionals; as well as deftly network with business colleagues (e.g., through social media).

As a scholar, our graduates should demonstrate the ability to think conceptually within relevant business disciplines (e.g., economics, finance, marketing, human capital, operational excellence or international business), as well as within practical professional literatures (e.g., sustainability, leadership, and ethics).  They should possess the ability to capture complex business problems in a credible business frame; express an independent voice in business discussions; and make a genuine intellectual contribution to strategic decisions.

As an effective communicator, our graduates should possess the ability to construct well-crafted arguments in professional presentations; express him or herself efficiently and fluently in written documents; confidently express independent opinions with business colleagues; identify appropriate / relevant business analysis; translate those analyses into quantitative methods; and confidently support arguments with accurate, rigorous and reliable data.

As a leader, our graduates should demonstrate character (e.g., remain ethical and honest); slow the world down to think critically, thoughtfully and reflectively; remain respectful of individual and cultural differences; positively impact others (i.e., adhere to a Hippocratic Oath: Above all, do no harm); demonstrate refined interpersonal skills (e.g., manage relationships); overcome difficulties and work without trauma; accept prediction errors as learning opportunities; and remain coachable: listen and accept advice/guidance.

We emphasize consistent themes across our core programme with the intention of

instilling these skills and qualities in our students: a transformation occurs

 as they near graduation.

Cheers,

David

Disaster Relief for Tonga

Disaster Relief for Tonga

Cyclone Ian, a category five storm of unprecedented intensity, struck the northern islands of Tongo. Over 2,000 people were displaced - 600 homes completely destroyed and 400 damaged. Access to clean water has been severely disabled as the storm polluted most reservoirs and is the country's current most pressing need. 80-90% of the water supply and storage tanks have been destroyed. Further, 95% of electrical infrastructure has been destroyed. Transportation infrastructure has been severely degraded. Authorities of the Tongan government are still attempting to reach several islands for aid.

Cyclone Ian had a major and immediate impact on the island country's economy. All three production plants for growing & exporting organic virgin coconut oil have been destroyed. All crops on the northern islands were destroyed - major exports for Tonga include banana, vanilla bean, squash, and fish. All northern island fishing equipment was also destroyed.

Pledge Me

A team of MBA students from our international exchange partners, National University of Singapore, Mahidol University (Bangkok, Thailand), and Duke University, as well as our own Donovan Clarke (Otago MBA) raised more than $2000 through a PledgeMe crowdfunding appeal to help Oxfam buy a desalination plant (total cost $11k) for the Ha’apai islands of Tonga.

Well done!

David