Global Canadian Trends Chisholm GMAC Laval2015

Global and Canadian Trends in
Graduate Management Education
Alex Chisholm
Senior Director, Research
Graduate Management Admission Council ®
CFBSD Annual Deans Conference | 2015 © 2015 Graduate Management Admission Council® (GMAC®) All rights reserved.
B-School Insight from GMAC
12k
748 employers prospective
47 countries students
Recruiters Prospects
400k candidates
GMASS and
Grads/Alumni GMAT
Examinees
3k grads
111 universities
190k
20 countries
Applications GMAT examinees
20k alumni
650 programs
306 universities
Canada Specifics
0 vs. 2
31.4 vs. 36.5
Canada Specifics
Canadian Residents
• 8k GMAT exams, 6k unique examinees
• 17k score reports sent
• 802 mba.com prospective student
survey respondents
Student Interest in Canada

• 25k GMAT score reports sent to
Canadian business schools
• 8.5k domestic prospects
• 16.5k international prospects
Canadian Schools
• 20+ schools participate in our survey
research, including Application Trends,
Graduates/Alumni, and/or Corporate
Recruiters
Thank You gmac.com/SurveySignUp
Today’s Topics
I. B-School Demand and Mobility Trends

Application Trends and TY2015 GMAT data
II. Student Segments

Specialized Master’s Candidates | Women | Millennials
III. Topical Trends

Debt | Digital Disruption | Differentiation
The Global GME Market Today
“ The MBA field today has a

decidedly non-academic air
of marketing and product
Big experimentation, with
universities:
• battling to woo students
with shorter degrees
Global • novel programs
• alluring opportunities for
foreign travel
• and new high-tech
Diverse buildings.
”
Canada’s MBA problem
April 2015
B-SCHOOL DEMAND &
MOBILITY TRENDS
Application Trends
% of Global Programs Reporting Growth
Full-Time MBAs 50%/50% split in

Canada for
FT MBA 2-Year FT MBA 1-Year
FT MBA programs
100%
in ‘15
75%
50%
25%
0% Specialized Masters
2009 2010 2011 2012 2013 2014 2015
MiM MAcct MFin
Professional MBAs 100%
PT MBA EMBA Online MBA (US Only) 75%
100% 50%
75% 25%
50% 0%
2009 2010 2011 2012 2013 2014 2015
25%
0%
2009 2010 2011 2012 2013 2014 2015
Source: GMAC Application Trends Survey Reports. 2009 through 2015.
GMAT Trends in Canada
Unique GMAT Examinees in Canada Unique Examinees

Canadian Citizens International Candidates Residing in Canada
6,000 • TY2007 | 5,971
5,000
• TY2011 | 7,052
• TY2015 | 6,085
4,000
TY % of CAGR
3,000
Province 2015 country since ’11
2,000 Ontario 3,461 57% -3%

Quebec 842 14% -2%
1,000
British
675 11% -8%
0 Columbia
Alberta 639 11% -2%
Nova Scotia 148 2% -3%
Nearly 190k individuals take the GMAT
186,868 Unique Examinees in TY2015 | 247,432 Total Exams
Canada
6,085 Examinees
-4% Compound Annual Europe
Growth Rate Since ‘11 19,834 (-1%)
Now stabilizing
Specialized master’s ,
Asia-Pacific
United States MBA  60,849 (+4%)
87,437 (-8%)
Middle East Led by India (MBA/PGD
Mexico & & Africa demand) &
China (specialized
Latin America 8,003 (-5%) masters)
4,660 (+3%)
Many smaller, emerging
markets growing
Source: GMAT® Examinees by Region of Residence

Emerging Student Pipelines
26 Countries at 9-Year GMAT Testing Highs in TY 2015
Source: Unique GMAT examinees by country of residence where examinees is 50 or greater in TY2015.
Ignores TY2012 due to IR spike.
Canada as leading talent destination
Top 5 GMAT Score-Sending Destinations, TY2015
1. United
States
2. United
• 107k individuals
Kingdom 438k scores
3. France
• 14k individuals
• 12k individuals 25k scores
4. Canada 20k scores
Top Talent Sources
• 9k individuals
5. India 25k scores United States: 55%
China: 14%
• 8k individuals
18k scores India: 13%
Top Talent Sources Canada: 1%
Canada: 32% Taiwan: 1%
India: 25%
“I could easily enroll 300 Korea, South: 1%
China: 19% Saudi Arabia: 1%
Nigeria: 3% students if I was willing
Brazil: 1%
Pakistan: 2% to have half of my class
Mexico: 1%
United States: 2% be from China or India.”
Vietnam: 1%
Iran: 1% - Dean of Canadian School
Bangladesh: 1% Canada’s MBA Problem
Brazil: 1%
Mexico: 1%
Study Destination Criteria
Study Destination Criteria by Preferred Destination
Europe Asia Canada United States
1 Reputation of the Reputation of the Reputation of the Reputation of the

educational system: 72% educational system: 63% educational system: 68% educational system: 68%
Improved chances of Improved chances of

Better preparation for Better preparation for
2 having an international having an international
career: 44% career: 48%
To develop an Affordability of
Attractiveness of Attractiveness of
3 international network of education/tuition fees:
location: 43% location: 44%
peers: 47% 42%
Improved chances of Improved chances of

Better preparation for Better preparation for
4 having an international having an international
Affordability of To develop an
5 Attractiveness of Availability of financial
education/tuition fees: international network of
location: 46% aid: 36%
37% peers: 31%
Why Canada?
Study Destination Criteria for Those Preferring Canada
Canadian Candidates
1. Reputation of the educational system: 62%
2. Attractiveness of location: 48%
3. To be near relatives/family living in the country: 44%
4. Affordability of education/tuition fees: 40%
5. Better preparation for career: 32%
6. Improved access to jobs in my home country: 29%
International Candidates
1. Reputation of the educational system: 71%
2. Improved chances of having an international career: 62% Only 18% of international
3. Better preparation for career: 50%
candidates who prefer US as
study destination say ease of
4. To develop an international network of peers: 47%
obtaining a work permits is a
5. Attractiveness of location: 40%
key criteria
6. Ease of obtaining a work permits: 40%
GME Enrollments up in Canada
Total Enrollments: 35k annual GME

enrollments, up from 22k in 2001
Graduate business, management, and
public administration enrollments
Market Share: 23% of masters
in Canada, 2nd Cycle enrollments are GME students – flat
Canadian Citizens International Students from ‘00
35,000
30,000 Women: 51% of GME enrollments are
25,000 women, up from 45% in ‘00
20,000
15,000 Part-time: Roughly half of GME
10,000 enrollments are part-time (stable)
5,000
0 Internationals: 16% of GME enrollments
are international students, ranges from
12 to 17% since ’00
The Domestic Pipeline Will Decrease
Cumulative Change in Canada’s

Student Age Population from 2015 The student age population
20-24 year olds 25-29 year olds in Canada is expected to
150,000 decline from 4.7m to 4.3m
100,000 from 2015 to 2025.
50,000
0 Its two leading international

-50,000 pipelines are heading in
-100,000 opposite directions:
-150,000 • India: 213m to 231m
-132,129
-200,000
(+17m, +8%)
-247,585 • China: 228m to 162m
-250,000
(-67m, -29%)
-300,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
CANDIDATE SEGMENTS
Specialized Master’s Candidates | Women | Millennials
© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved.

Specialized Master’s Candidates
Demand for non-MBA masters degrees has grown
% of GMAT scores sent to

specialized master’s degrees
Specialized Master’s
by region of residence Spotlight on Canada
TY2007 TY2015 17% Percent of scores

56% sent by Canadian residents,
40% up from 10% in ‘07
23%
17% 21% Percent of scores
received by Canadian schools,
up from 10% in ‘07
Europe Asia-Pacific United Canada
States
The Distinct Specialized Masters Pipeline
Q: Are specialized Specialized

Master’s
Characteristics of
Global GMAT MBA
master’s programs Candidates Score-Senders Candidates
60% % Younger than 24 25%
cannibalizing the 47% % No Work Experience 16%
MBA pipeline? 49%

67%
% Women
% Business Undergrad
38%
44%
GMAT Score-Senders to Canada
A: Not today, what 61% % Younger than 24 20%
49% % No Work Experience 10%
about tomorrow? 56% % Women 35%
62% % Business Undergrad 37%
Stepping Stones or Substitutes?
… AND MBA
Tomorrow
Specialized … OR MBA
Masters Today… Tomorrow
… AND Something
Else Tomorrow
What Today’s Graduates Say
How likely are you to consider an MBA now that you’ve earned a specialized masters?
Likely Uncertain Unlikely
41% 44% 40%

33% 36% 32%
32%
27%
15%
Accounting Masters Finance Masters Management Masters

Graduate Degree Earned
Source. GMAC Graduate Management Education Graduates Survey (GMEGS) 2014 and 2015 results.
7 point scale with likely/unlikely computed by top2box.
Women
Larger presence in specialized masters group
% Women by
Women as % of GMAT Examinees Region of Residence
Region of Specialized
Specialized Masters 49.2% MBA
Score-Senders Residence Masters
46.6% E/SE Asia 53% 68%
Africa 41% 46%
43.0% Middle East 39% 39%
All Examinees
Eastern Europe 38% 50%
39.5% United States 38% 45%
Canada 38% 47%
37.8% 37.6%
Western Europe 33% 39%
MBA
Score- Australia-Pacific 31% 35%
Senders LATAM 28% 37%
C/A Asia 27% 33%
TY2007 TY2008 TY2009 TY2010 TY2011 TY2012 TY2013 TY2014 TY2015
Source: GMAT testing data. TY2007-TY2015

Women
On-campus presence is slowly growing
Financial Times Ranked FT MBA Programs: % Women
32%
30% 30%
Students 28%
26%
24%
21%
19%
Faculty 22%
18%
16% 6 Canadian Schools in 2015
12% Students: 33% (29% to 42%)
Board
Board: 28% (13% to 50%)
Faculty: 27% (23% to 33%)
2000 2005 2010 2015
Key Question: How do we leverage high female participation at the undergraduate

business level and ensure that GME is equally as welcoming?
Source: Financial Times FT MBA Ranking Data. 2000-2015.

Millennials
Popular opinion
Volunteer
work
Community
Politics
& public
life
Non-profit
employment
Millennials
How about our millennials?
Rank out of 14 psychographic items: Millennials
Volunteer Politics & Financial Career &

Region of Residence Community
Work Public Life Security Work
Africa 6th 12th 14th 2nd 1st

Canada 11th 12th 13th 1st 2nd
Central & South Asia 11th 10th 13th 2nd 1st
East & Southeast Asia 9th 12th 13th 4th 1st
Eastern Europe 10th 13th 12th 2nd 1st
LATAM 11th 12th 13th 2nd 1st
Middle East 10th 12th 13th 2nd 1st
United States 9th 12th 13th 1st 2nd
Western Europe 11th 13th 12th 3rd 1st
Source: mba.com Prospective Students Survey 2014-2015

Millennials
Generational divides?
Psychographic Items Asked - Percent Selecting Important (%)

Millennials Gen X and Boomer
100% +7% -5%
+13% +3%
80%
+8%
60% +10% -5%
40%
20%
0%
 Very Important Less Important 

Millennials
Intended post-GME industry
Top Five Intended Industries
• Consulting services: 19%

• Investment banking: 19% #16 Government 7%
Millennials • Management consulting: 19%
• Banking: 18% #20 Non-Profit 6%
• Finance & insurance: 14%
• Consulting services: 14%

• Management consulting: 13% #7 Government 8%
Gen X and • IT or services: 10%
Boomers • Education/Ed services: 10% #9 Non-Profit 7%
• Banking: 9%
Key Questions
• Where do business school prospects fit in the Millennial hype?
• Are we missing out on a more “typical” segment of the younger
population or does that really exist?

Trudy
World Vision | MBA ‘13
My MBA helped me…
“engage with senior

management through
deeper understand of
strategy and financial
management”
“understand of how
social-political-
economic
realities/challenges
across various regions
impact my work in the
humanitarian industry”
worldvision.com/donate
TOPICAL TRENDS
Debt | Digital Disruption | Differentiation

MBA Sticker Shock “Student debt increasing by $1 million
per day [in Canada].”
Canadian Federation of Students
Nearly 60% of recent GME
graduates have debt….
“Canadian students are seeing their
2-Year FT MBA programs financial obligations grow faster
grads had greatest average than income. ”
debt levels: US$50k Huffington Post 2014
• EMBA: $41k
Debt Consequences
• FT MBA 1-Year: $40k
• Double-debt calculations
• Other GME Masters: $37k
• Less likely to start a business*
Region of % with Median • Less likely to be “thriving”*
Residence Debt Amount (US$)
Global 59% $45k
Central & South Asia 67% $30k
United States 65% $50k
Europe 41% $46k
East Asia & Pacific 38% $34k
Source: GMAC 2013 Graduate

Management Education Graduates
Survey. * Gallup survey 2014
Tuition Capitulation
Tuition
Cutting
Fully Fund
Everyone
Partner at
a Discount
Old: Knowledge Creation & Knowledge Hoarding
New: Knowledge Dispersion
Digital Disruption
What Prospects Think of MOOCs
Roughly 50% of global prospective students know what MOOCs are.
Asia- Central United

I’d characterize a MOOC as … Canada Europe
Pacific Asia States
A way to explore a personal interest 56% 58% 66% 60% 63%

A method to gauge my interest in a topic area 47% 48% 45% 48% 48%
A professional development tool 30% 46% 49% 37% 47%
Preparation for a GME program 38% 31% 23% 25% 27%
Alternative to GME 24% 9% 11% 14% 12%
Source: mba.com Prospective Student Survey. Preliminary data from respondents in 2014.
Differentiate on % considering online MBA
programs by region of residence
Delivery United States 21%
What role will technology play? Canada 16%

LATAM 8%
Desired online Western Europe 6%
component (%) by
preferred degree type Asia 4%
• Online MBA: 89%

• EMBA: 28%
• Finance: 24%
• Acct: 23%
• MiM: 21%
• FT 1-Year MBA: 20%
• FT 2-Year MBA: 16%
Source: 2015 mba.com Prospective Student Survey

Differentiate on
Content
Data Analytics
“ North America is a
saturated market for
8% of global GME prospects consider
Masters in Data Analytics programs,
6% in Canada
MBA programs, and

most now have to start
targeting niche
markets with
specialized courses.
”
Dean of Canadian B-School
Canada’s MBA problem
April 2015
Source: GMAC 2015 mba.com Prospective Student Survey and
2015 Corporate Recruiters Survey.
Data Analytics
Opening the Black Box
“Big data is like teenage sex: everyone talks about it, nobody really
knows how to do it, everyone thinks everyone else is doing it, so
everyone claims they are doing it.”
- Professor Dan Ariely, Duke University
Data Profit/Success
Key Question: How

can business schools
• Big data educate talent to
• Predictive analytics
help organizations
• Segmentation
• Etc…
actually implement
“big data” solutions?
Entrepreneurship
Nearly 3 in 10 prospects are considering
Segmenting by career goals
Career Enhancers Career Switchers Aspiring Entrepreneurs
34% 38% 28%

Percentage of global respondents
Source: GMAC 2015 mba.com Prospective Students Survey
Entrepreneurship
More prospects worldwide are interested
Interest in Post-Degree Entrepreneurship

by Region of Residence
2010 2011 2012 2013 2014
50%
44% 43% 42%
40%
30% 28% 27%

23%
21%
20%
10%
0%
Latin Central Middle Europe Asia/PI Canada United
America Asia East/Africa States

Entrepreneurship
Many are interested, fewer act
Importance of GME in helping… 2015
5% of 2015 graduates Lead my company 82%
pursuing entrepreneurial Grow my business 81%
careers Develop an idea 77%
Develop financial projections 75%
Why? Conduct market research 74%
Write business plan 70%
Contact with potential customers 68%
1. Passion for what they do: 90%
Write marketing plan 68%
2. Autonomy: 86% Secure financial resources 67%
Create human resource plan 61%
3. Revenue Potential: 81%
4. Flexibility: 79% Key Question: How can we

position business school as a
5. Control: 78%
developer of entrepreneurs and
not a delay of entrepreneurship?
Source: GMAC Graduate Management Education Graduates Survey 2015

Entrepreneurship
Where does business school fit in?
"If you're an entrepreneur and have

passion, the hell with more education!”
- Jack Welch
Most MBAs do not have any startup experience,

& founders won’t be impressed if you won your
business plan competition during school.
How Does GME Stay Relevant?
“With more than 40 universities

offering MBA degrees in Canada –
plus hundreds more in the United
States – there are growing
questions about whether MBA
schools can guarantee high job
placement rates to lure students
into paying as much as $95,000 for
an education, and whether they
can maintain their lustre in the
eyes of the business community.”
Canada’s MBA Problem
The Value of GME Remains High
% of GME alumni reporting value as good,
excellent, or outstanding
97% 96% 95% 95% 95% 94% 92% 84%
FT MBA 2- MiM EMBA Online MAcct FT MBA 1- PT MBA MFin

Year MBA Year
% of 2015 GME graduates reporting value as
good, excellent, or outstanding
93% 92% 91% 90% 90% 90% 86% 84%

74%
Faculty Curriculum Program Admissions Program Fellow Program Student Career

reputation structure students management services services
Source: GMAC 2015 Alumni Perspectives Survey. GMAC Graduate Management Education Graduates Survey 2015
© 2015 Graduate Management Admission Council® (GMAC®)

The Post-GME Value Chain
• Personal
Individuals • Professional
• Financial
• Competitiveness
Companies • Profitability
• Staying power
• Economic growth
Society • Development
• Improved standard of living
© 2015 Graduate Management Admission Council® (GMAC®)

THANK YOU
Alex Chisholm
achisholm@gmac.com
gmac.com/research

Global Canadian Trends Chisholm GMAC Laval2015

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Global and Canadian Trends in

Graduate Management Education

31.4 vs. 36.5

Student Interest in Canada

I. B-School Demand and Mobility Trends

II. Student Segments

III. Topical Trends

“ The MBA field today has a

Full-Time MBAs 50%/50% split in

Professional MBAs 100%

PT MBA EMBA Online MBA (US Only) 75%

Source: GMAC Application Trends Survey Reports. 2009 through 2015.

Unique GMAT Examinees in Canada Unique Examinees

2,000 Ontario 3,461 57% -3%

Source: GMAT® Examinees by Region of Residence

26 Countries at 9-Year GMAT Testing Highs in TY 2015

1 Reputation of the Reputation of the Reputation of the Reputation of the

Improved chances of Improved chances of

Improved chances of Improved chances of

Total Enrollments: 35k annual GME

Cumulative Change in Canada’s

0 Its two leading international

© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved.

% of GMAT scores sent to

TY2007 TY2015 17% Percent of scores

Q: Are specialized Specialized

MBA pipeline? 49%

Likely Uncertain Unlikely

41% 44% 40%

Accounting Masters Finance Masters Management Masters

Source: GMAT testing data. TY2007-TY2015

2000 2005 2010 2015

Key Question: How do we leverage high female participation at the undergraduate

Source: Financial Times FT MBA Ranking Data. 2000-2015.

Rank out of 14 psychographic items: Millennials

Volunteer Politics & Financial Career &

Africa 6th 12th 14th 2nd 1st

Source: mba.com Prospective Students Survey 2014-2015

Psychographic Items Asked - Percent Selecting Important (%)

 Very Important Less Important 

Source: mba.com Prospective Students Survey 2014-2015

• Consulting services: 19%

• Consulting services: 14%

Source: mba.com Prospective Students Survey 2014-2015

My MBA helped me…

“engage with senior

© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved.

Source: GMAC 2013 Graduate

Roughly 50% of global prospective students know what MOOCs are.

Asia- Central United

A way to explore a personal interest 56% 58% 66% 60% 63%

What role will technology play? Canada 16%

• Online MBA: 89%

Source: 2015 mba.com Prospective Student Survey

© 2015 Graduate Management Admission Council® (GMAC®) All rights reserved.

MBA programs, and

Key Question: How

Segmenting by career goals

Career Enhancers Career Switchers Aspiring Entrepreneurs

34% 38% 28%

Source: GMAC 2015 mba.com Prospective Students Survey

Interest in Post-Degree Entrepreneurship

30% 28% 27%

Source: mba.com Prospective Students Survey 2010-2015