Business schools diversify programs, shift to local faculty
The International Management Institute (IMI) pioneered business education in Ukraine when it introduced a full-time MBA program in the early 90s.
During the ten years since, the IMI has witnessed the appearance of more than 280 competitors offering a variety of business programs throughout the country, according to the Ukrainian Association for Management Development and Business Education (UAMDBE).
Mykhailo Krikunov, acting rector at the International Institute of Business, said that though the market is growing, the demand for business education isn’t high enough to create severe competition between business schools across the country.
The major fight is in the capital, between market leaders IMI, IIB, Kyiv Mohyla Business School (KMBS) and Kyiv Business School.
Each of the four offers a portfolio of programs typical for Western business schools. The classes include executive MBA, short- and long-term programs, as well as an opportunity for conducting management consulting and business research. Despite an overall similarity, the offerings do somewhat differ.
KMBS Dean Pavlo Sheremeta said his school offers different business classes but has been traditionally strong in short-term programs, which include executive development seminars.
In addition to a rich portfolio of short-term programs, seminars and trainings, IIB is the only school which provides students with original diplomas from the Chartered Institute of Marketing and Canadian Grant McEwen College, while IMI is the only program which issues an MBA diploma in addition to the state diploma of specialists, which allows graduates to net jobs in government institutions.
“[Domestic] MBA programs are similar in many of their formal elements,” said Lina Khasan-Bek, director of the MBA program at IMI. “The main difference between them is intangible and depends on the faculty and environment, corporate culture, traditions and spirit of the school.”
“There is diversity on the market and each person can choose the school which fits their personal needs,” said Kyiv Mohyla’s Sheremeta. “This is a very positive trend.”
Krikunov said IIB closely cooperates with Western partners in an attempt to deliver foreign experience to its students. The school implements programs in cooperation with the German Institute REFA-International and BBW.
Sheremeta said that differences in program offerings, even if only minor, help the schools gain and maintain a more competitive edge. He said his school has recently become more demanding in choosing its students.
“We select students very carefully and admitted only 60 percent of applicants during the last two intakes,” he said. “We want our classes to be attended only by those students who not only meet our formal admission criteria, but also share the school’s philosophy.”
NEW STUDENTS BECOMING OLDER
Sheremeta said that one of the main tendencies in business education today is the increasing age of MBA students.
“Each year the students in our school become older and older. If two years ago MBA students were on average 26 years old, today they are 35,” he said. “Students are getting more experienced, more demanding. They ask for the most modern knowledge.”
“The students no longer want to have just a certificate or degree,” said UAMDBE Council Head Nina Ushakova. “They want to acquire practical skills necessary in business desion-making, communication, negotiations, leadership, and teamwork. There is a greater demand for quality and variety in business programs.”
Khassan-Bek said that directors of state-owned enterprises who sought to acquire managerial skills in the market environment were the school’s first MBA students back in the early 90s. The next generation of students was comprised of mostly Ukrainian employees of multinational companies operating in Ukraine.
“Today, 70 percent of MBA students are representatives of Ukrainian businesses,” she said. “There are owners of companies, presidents and top-managers among them.”
She also said that more Ukrainian firms are ready to spend money on educating their staff.
Oleksy Volchkov, commercial director at Credit Lyonnais bank, was among KMBS’ first MBA graduates. Volchkov said that he decided to obtain an MBA after he realized that his knowledge of finances wasn’t in depth enough for career growth, and that he needed general knowledge in management, as well.
He said that Western business schools, apart from charging more, often offer skills that can’t be used in the Ukrainian business environment.
“The MBA is not just a teaching and learning process [in the classroom], it’s a process of sharing experiences between the participants of the program,” Volchkov said. “And Western experience won’t work here.”
FROM DONATIONS TO PROFITABILITY
Most business schools started off with sponsors’ donations, making the transition to profitable enterprises within a few years.
Krikunov said that IIB’s profits have doubled over the last two years. He said the school still accepts donations from individuals and businesses, but that donations are much less significant now than even a few years ago. He said the school’s donors include Canadian International Development Agency, British Know-How Fund and German Transform program.
School officials say that one problem they face is the general lack of understanding of how important business education can be for entrepreneurs, many of whom continue to use old Soviet methods of management.
“It seems that entrepreneurs should hunt for business schools, but in reality it’s not the case,” Krikunov said. “Deans and teachers beg them to come, explaining to them the importance of education, but they ignore it.”
Volchkov believes that until many Ukrainian businesses come out of the shadow, the demand for business education won’t grow significantly.
“As more companies operate in a legal and competitive environment, more businesses will recognize the need for business education,” he said.
Another problem business schools face is a lack of professional faculty. Khassan-Bek said the problem stems from the young age of Ukraine’s market economy.
Nevertheless, she said that if foreign educators previously accounted for 85 percent of the school’s faculty, now the share is down to 15 percent. Most schools started off by inviting foreign lecturers, and are gradually moving to employing Ukrainian teachers.
Sheremeta said the staff’s proficiency will play a major role in competition between schools.
“Whoever has a stronger faculty will win in the competition,” Sheremeta said. “There will be a war for talents.”
