Inflight Magazine of Brussels Airlines

Beyond the turmoil

Beyond the turmoil

Demand is up for MBAs as people take a break from the uncertainty of the markets. But how do business schools equip tomorrow’s leaders for the challenges ahead? asks Sarah Morris

For business people with savings or redundancy payouts it may be time to hunker down, away from the turmoil in world markets, by studying for an MBA. “We are getting many more applications,” says Camila de Wit, Director of Admissions and Career Services at Barcelona’s ESADE Business School.

Schools have reported a rise in applicants from banking and consulting, among others. “There are a lot of people from the US and certain parts of Asia coming to Europe,” de Wit continues.

Many workers feel gaining new skills while times are tough could be a productive use of their time until markets pick up. Some of them are high-flying individuals who felt they would damage their career prospects by taking time out during the boom years. Now, with promotions and salary increases frozen at many companies, they think one to three years spent on an MBA could be a smart move.

“There are fewer vacancies and promotions, so having an MBA is an extra string to your bow,” says Michael Scott, a 27-year-old Briton who is studying part-time at Manchester Business School, while continuing to work as an auditor.

Scott is being sponsored through his MBA by his company, KPMG, and realises that he is one of the lucky ones – as companies cut back on training, a growing proportion of students on this year’s courses are self-financing.

Just two out of 32 students on the Lisbon MBA are financed by their companies, says the course Executive Director Belen de Vicente. “If the market is not able to do it, individuals need to show the market they are well prepared to face challenges,” she says.

Dieter Koehler, a 29-year-old German, is paying for his own MBA at the ESADE Business School, after leaving a job at Germany’s Commerzbank. “For me, the crucial things about the MBA are the leadership development, the teamwork skills and the interaction with different cultures,” he says. “There are 33 or 34 different nationalities on my course. Later on, at work, that understanding of diversity can help get better results.”

Koehler has improved his English, since its the common language on the course, as well as his Spanish, through living in Barcelona. De Wit says students from the ever-more competitive job market in the United States are increasingly attracted to Spain to learn or improve Spanish. “They’re looking for a way to differentiate themselves from others. The Latin American market has always been important for the United States, and even more so now.”

At a time when market rules are being severely tested, and even rewritten, the challenge for business schools is to reshape courses to equip students with the skills that will be in demand. “It’s no longer enough for MBAs to just train analytical skills like marketing a product and company finance – that’s basic. Companies will now be looking for people able to change a working environment, jump over obstacles, to communicate and persuade,” says de Vicente.

She adds that such ‘soft skills’ are an important part of training on the new one-year MBA at Lisbon, designed by two of Portugal’s top universities in cooperation with the Boston-based Massachusetts Institute of Technology.

“The problem MBAs have is that issues being debated in financial news take six months to get into academic literature,” says Scott. He says his MBA tutors tackle the unfolding drama of the credit crunch by looking at up-to-date case studies of companies.

“We had classes on the global context of management,” says Koehler of his experience at ESADE. “We asked about how far we can go and about who’s responsible for what happens. We also looked at how acceptable it is for bosses to get huge salaries, and how we can manage things better in the future.”

Schools are hosting a whirlwind of lectures on their campuses by some of the decision-makers battling the crisis, many of whom will play a role in determining the future regulation of the world’s markets. A typical talk at ESADE was by Bank of Spain Governor Miguel Angel Fernandez Ordoñez on the Spanish banking system in the current international financial crisis.

Never before has understanding the reasons for management failure been so important to MBA students. Ben Bramich, a 33-year-old Briton, says that hearing from entrepreneurs who had failed at one business and then gone on to set up a successful one, was one of the most valuable lessons he learnt from his MBA course at Solvay Brussels School of Economics and Management.

During the course, he developed a business plan for an organic food delivery company, which he implemented on graduation last October. “On the course, the group took apart my business plan, the financial part and the strategy,” he says. “That was a great experience and I don’t think I could have set up my business without it.”

Bramich’s fledgling company, reason2.be in Brussels, has made a good start despite the economic situation. “I’ve seen phenomenal growth and had a lot of good feedback,” he says.

But other MBA students returning to the market this year are facing disappointing prospects. Traditionally, some of the top recruiters from MBA courses have been investment banks and private equity companies, and career advisory teams are working to target other sectors, instead, such as consultancies handling restructuring, renewable energy firms and aeronautics.

Some careers advisors are modifying expectations, particularly about salaries, and advising students to take a long-term view of the MBA’s impact on their career. “There are three areas which people often want to change after an MBA: their functional area, their sector and their geographical area,” says de Wit. “If you want to change all three and earn €200,000, the market is not going to let you do that. I tell them to do one at a time.”

For those still studying for their MBA, the duration of the crisis will be influential on decisions and opportunities. Koehler, who’s due to graduate in March 2010, plans a return to finance or a job in consulting. “I’m pretty confident that the situation will be better in a year,” he says.

How to enlist

If you’re interested in finding out more about the MBA’s we’ve featured contact the following:
- Solvay Brussels School of Economics and Management www.solvay.edu
- Barcelona ESADE Business School www.esade.es
- Manchester Business School www.mbs.ac.uk
- Lisbon MBA www.thelisbonmba.com

FR Loin du tumulte

Pour les business people qui ont quelques économies en réserve ou un surplus de dividendes, c’est le moment ou jamais de se retirer de l’agitation qui secoue les marchés mondiaux. Pourquoi ne pas envisager de faire un MBA ? “Nous recevons de plus en plus de demandes d’inscriptions,” explique Camila de Wit, Directrice des Admissions et des Services Carrières à l’ESADE Business School de Barcelone.

“Dans un marché de l’emploi saturé où les offres et les promotions se font rares, un MBA est une corde supplémentaire à votre arc,” nous dit Michael Scott, 27 ans, étudiant MBA à la Manchester Business School.

En période de forte remise en question des règles des marchés, le défi des business schools consistera à refaçonner leurs programmes afin de fournir aux étudiants les compétences requises. Les entreprises vont commencer à rechercher des collaborateurs capables de changer un environnement de travail, de contourner les obstacles, de communiquer et de persuader.

De plus, face à la pénurie généralisée du crédit, les étudiants en MBA considèrent qu’il est crucial de comprendre les raisons de l’échec du management à contenir la débâcle. Ben Bramich, un homme d’affaires de 33 ans titulaire d’un MBA de la Solvay Brussels School of Economics and Management, explique qu’il a appris énormément en écoutant le parcours de certains chefs d’entreprise. Comment notamment après un premier insuccès, ils sont parvenus à monter une affaire prospère.

Certains conseillers d’orientation professionnelle restent toutefois prudents quant aux attentes des candidats, particulièrement en matière de salaires. Ils conseillent aux étudiants de considérer l’impact d’un MBA sur leur carrière, à long terme. “On recense principalement trois domaines que les professionnels souhaiteraient changer après un MBA : leur fonction, leur département et leur zone géographique,” confirme de Wit. “Si vous voulez changer ces trois points simultanément et gagner €, le marché ne vous laissera pas faire. Je leur recommande d’y aller progressivement.”

NL Het tumult voorbij

Voor businessmensen die een appeltje voor de dorst hebben gespaard of onlangs een aardige afvloeiingspremie hebben gekregen, is de tijd misschien wel rijp om uit de rat race te stappen, het tumult op de wereldmarkten even te laten voor wat het is en een MBA te gaan volgen. “Het aantal aanvragen is enorm gestegen,” zegt Camila de Wit, Director of Admission and Career Services aan de ESADE Business School in Barcelona.

“Het aantal vacatures en promoties slinkt, dus een graad van MBA is een aardige surplus op je cv,” zegt Michael Scott, een 27 jarige MBA-student aan de Manchester Business School.

In een tijd waarin de marktregels stevig op de proef worden gesteld, moeten de business schools hun lessen zo bijschaven dat ze hun studenten kunnen wapenen met de competenties die binnenkort erg gegeerd zullen zijn op de markt. Ondernemingen zullen nood hebben aan mensen die een werkomgeving kunnen omvormen, obstakels kunnen omzeilen, overtuigend zijn en communicatief sterk staan.

En in het oog van de storm van de kredietcrisis is het voor MBA-studenten belangrijker dan ooit de redenen voor managementfalen te kunnen doorgronden. Volgens Ben Bramich, een 33-jarige zakenman, waren de verhalen van ondernemers die gefaald hadden in de ene business maar daarna succesvol een tweede opstartten, de meest waardevolle lessen die hij tijdens zijn MBA aan de Solvay Brussels School of Economics and Management heeft geleerd.

Toch proberen sommige carrièreadviseurs het enthousiasme te temperen. Ze sturen de verwachtingen van studenten bij, in het bijzonder inzake loonsverwachtingen, en ze adviseren hen om ook de impact van hun MBA op hun loopbaan op lange termijn te bestuderen. “Mensen willen hun loopbaan vaak op drie vlakken bijsturen na het behalen van een MBA: hun functie, de sector waarin ze werken en de locatie waar ze werken,” zegt de Wit. “Wanneer je al die zaken tegelijk wilt veranderen en ook nog eens € 200.000 wilt verdienen, sluit de markt kordaat zijn deuren voor jou. Ik raad hen aan de zaken stap voor stap aan te pakken.”

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