Big business school mergers; the Hult and Ashridge merger

This article was originally published on BusinessBecause.com Era Of Big B-School Mergers Extends Networks For MBA Students. As he walked into Ashridge’s Hertfordshire base, just outside London, Kai Peters was troubled. It was spring 2011, and the veteran CEO of one of the UK’s largest business schools had had a torrid year. The slowdown in executive education, the cash cow of schools, would mean another drop in revenues. There was more bad news. Ashridge, a business school famed for its executive courses, had slipped from a top-ten ranking down to 20th in just four years. Ashridge had already been struggling to reach the  £45.7 million in revenues it had cooped in 2009. By 2011, cashflow had fallen to  £35 million, according to FT ranking data. Surprisingly, Ashridge’s best year came during the financial crisis, when most other schools struggled to sell executive programs to the corporate world. Which is why Kai had cause for concern. In the three years since 2011, Ashridge has fallen from the 11th to 16th spot in customized executive rankings, and revenue has fallen to  £34.3 million. By the time rankings were released in May this year, it was thought that the business school had been trying to broker a merger with another for a few years. In June, Kai confirmed that an Ashridge merger or possible strategic partnerships were an option. The school’s splendid surroundings in Hertfordshire have made financial matters worse. Its MBA students occupy listed buildings, meaning it is obliged to fork out for maintenance work on behalf of the nation. Ashridge is operated as a charity. Figures obtained from the Charity Commission show the school spent  £6.6 million on management education, but  £2.3 million on estate preservation. The figures get worse. Through 2012-13, income amounted to  £32.7 million but expenditure was  £34.2 million. At the time, Kai stressed that the school was financially healthy. Clearly many disagreed with his view. Ashridge’s woes provide a glimpse into mounting speculation about big business school mergers. By linking up with other institutions, MBA and exec ed providers are able to offer employers a multi-location and multi-language portfolio of degree and executive programs. For students, the benefits are bigger alumni networks and new learning perspectives. â€Å"Working with different persons with different backgrounds, different experiences and different technical languages makes the program even more attractive,† says one graduate of a program split between two leading European business schools. Some will speculate that merging two schools together is simply a way for institutions to create more business. It also provides a way for some business schools which do not have accreditation from bodies such as Equis, the accrediting body in Europe, to link up with universities which are already accredited, although it may be temporarily suspended. But what is certain is that the business school world is in the throes of MA. Over the past two years several schools in both Europe and the US have formed strategic partnerships. The mergers are not restricted to executive education. Deals have been struck with online course providers, for-profit companies and specialist Master’s degrees as well as MBA programs. A new era of massive business schools beckons. Last Thursday, Larry Penley was in a jubilant mood. His US-based business school, the Thunderbird School of Global Management, had been thrown a financial lifeline. The merger with Arizona State University would provide some respite to the school which ended last year with a loss of $8.7 million, more than double the school’s 2012 losses, according to its annual report. Larry was under huge pressure to save the flagging business school, which has 750 full-time and part-time students on its Phoenix West Valley campus in Arizona. For months the Thunderbird president had been handling a potential merger with international university operator Laureate Education, in a multimillion-dollar joint venture that would have shored up the business school’s finances. On March 14, an accrediting body rejected the proposed joint venture in what was a blow to Thunderbird’s fight to stay afloat. In April, the school officially ended its pursuit of the lucrative deal. Added to Thunderbird’s woes was a shake-up of its board members. Five have parted ways in the past few months, but some have publically insisted it had nothing to do with the financial uncertainty surrounding the cash-strapped school. Thunderbird president Larry said: â€Å"The future of Thunderbird matters to all of us. That is why the Board of Trustees voted unanimously almost two years ago to pursue a strategic partnership to raise Thunderbirds competitive position while preserving its brand and continuing to pursue its global mission. I am happy to report we have found that partner in Arizona State University.† The deal groups Thunderbird with ASUs W. P. Carey School of Business. Carey already has some 11,000 students. The merger will create a gigantic network of alumni across the United States, and in Europe, Asia, South America and Africa. A press release set out the terms of the arrangement: complementary ASU programs are to be integrated into Thunderbirds curriculum; ASU programs can now be offered internationally to expand enrolment and generate additional revenue; both schools’ executive education programs will be expanded. â€Å"This merger offers significant advantages to both institutions,† said ASU’s president Michael M. Crow. He added: â€Å"Students at ASU and Thunderbird will have access to more courses and programs†¦ and financial efficiencies will be created.† On Independence Day last week, Hult International Business School, the internationally spread network of campuses, came a step closer to its global ambition of providing the best leadership development on the planet. Their extended reach, with MBA programs taught in Boston, San Francisco, London, Dubai, and Shanghai with a rotation centre in New York, was about to get a whole lot bigger. Hult was named as a potential partner with Thunderbird. But last week’s tie-up instead came with struggling exec ed specialists Ashridge. The benefit for an Ashridge merger was obvious – yet Hult had problems to quash, too. A lack of business research and has meant it has been unable to seek accreditation from bodies AACSB and Equis – Ashridge holds both Equis and AACSB accreditation. And as Ashridge concentrates on more mature students and executive teaching coaching, there is little overlap with the younger students at Hult. â€Å"By combining Ashridge’s expertise in organisation development and Hult’s strength in developing individual leaders, our ambitious vision is to become the best and most relevant provider of leadership development in the world,† said Dr Stephen Hodges, Hult’s president. The move could create one of the largest business schools in the world. The proposed joint entity would encompass a full-service business school, with undergraduate, masters, MBA, EMBA and executive education programs. Combined, the schools have close to 300 professors, more than 4,000 degree students and  £25 million in executive education revenues. Ashridge president Kai said: â€Å"The alliance brings together complementary organisations, both of which are run by business people – for business people. We share a philosophy that learning has to be informed by the realities of business, as well as the theory.† There are clearly financial ambitions behind these mega-mergers, but schools which seek to preserve their brand are also crafting smaller partnerships of their own. SDA Bocconi School of Management and ESADE Business School, two titans of the European MBA scene, joined forces four years ago to create an Executive Master in Marketing and Sales – EMMS. The program combines distance learning through an online platform with traditional classes. EMMS students split their classroom time between SDA Bocconi’s Italian campus and ESADE’s Spanish bases. â€Å"It doubled the network of our students,† says Alessandro Arbore, the course co-director. He adds: â€Å"Enlarging the places where the students are going to meet is also improving their real-life and personal experience.† Elsewhere in Europe, Reims Management School and Rouen Business School announced that they would merge to form a joint entity called Neoma Business School last year. That followed French schools BEM Bordeaux and Euromed Management forming Kedge Business School. For business schools, the benefits are mostly financial. But for MBA students, a huge network of alumni, more global study locations and masses of career support may prove attractive. Step up your game with executive education at Ashridge agile business school. To find out more, take a look at our blog Hult Ashridge: A year of innovations, or firm up your exec career footing with a Masters in International Business from Hult. Download a brochure or get in touch today to find out how Hult can help you learn everything about the business world, the future, and yourself. Hult Rotation offers you a chance to study in a truly global way. Our rotation program allows you to study and be immersed in some of the finest cities in the world. 📠¸: @jasminmanzano . Hult Rotation offers you a chance to study in a truly global way. Our rotation program allows you to study and be immersed in some of the finest cities in the world. 📠¸: @jasminmanzano . Each year, Hult seeks to enroll a talented and ambitious incoming class from all over the world. We look for diverse students with a wide range of experiences, perspectives, and interests—students who will thrive in our unique educational atmosphere. Are you ready for a truly global experience? 📠¸: @iambrunadiniz . Each year, Hult seeks to enroll a talented and ambitious incoming class from all over the world. We look for diverse students with a wide range of experiences, perspectives, and interests—students who will thrive in our unique educational atmosphere. Are you ready for a truly global experience? 📠¸: @iambrunadiniz . We’re excited to start 2020 on a ranking high! Hult is proud to have been placed #28 in Poets Quants 2020 rankings for Best Undergraduate Business Schools in the US. Taking a huge leap of 32 places from our 2019 position, we’re also very happy to have secured top positions in key categories like: life-changing experience, practicality of the degree, and global immersion. . With five global campuses, a student body of over 130 nationalities, and a learn-by-doing approach—Hult offers a student experience like no other. . We’re excited to start 2020 on a ranking high! Hult is proud to have been placed #28 in Poets Quants 2020 rankings for Best Undergraduate Business Schools in the US. Taking a huge leap of 32 places from our 2019 position, we’re also very happy to have secured top positions in key categories like: life-changing experience, practicality of the degree, and global immersion. . With five global campuses, a student body of over 130 nationalities, and a learn-by-doing approach—Hult offers a student experience like no other. . â€Å"I’m from an engineering background and needed a whole new skill set for the industry I wanted to switch to. I learned a lot about myself and how I deal with being out of my comfort zone. I learned both soft and hard skills, from how to work in very diverse teams to key accounting metrics and strategy. I was surprised by how weak I was at certain tasks in English or how strong I actually was in other areas. Hult gave me opportunities to try new things and meet people from places I never thought I would have friends. . My internship experiences gave me the chance to broaden my view of different cultures and different companies. I had the opportunity to work and live with people whose values differed from people in my home country. I thought that this would be difficult, but it gave me the chance to reflect on my own values and assess if they were a result of my home country environment or if they were intrinsically mine. . Diederick ter Kulve (@diederick.terkulve) Netherlands Masters in International Business . â€Å"I’m from an engineering background and needed a whole new skill set for the industry I wanted to switch to. I learned a lot about myself and how I deal with being out of my comfort zone. I learned both soft and hard skills, from how to work in very diverse teams to key accounting metrics and strategy. I was surprised by how weak I was at certain tasks in English or how strong I actually was in other areas. Hult gave me opportunities to try new things and meet people from places I never thought I would have friends. . My internship experiences gave me the chance to broaden my view of different cultures and different companies. I had the opportunity to work and live with people whose values differed from people in my home country. I thought that this would be difficult, but it gave me the chance to reflect on my own values and assess if they were a result of my home country environment or if they were intrinsically mine. . Diederick ter Kulve (@diederick.terkulve) Netherlands Masters in International Business . Say a big hello to our Bachelor of Business Administration program cover star, Elisa Orus Plana âÅ" ¨ . â€Å"I’m excited for the future—especially that I cant predict whats going to happen. Maybe Ill end up in Mexico working for a trading company or maybe in Africa, developing my own business. Everything is possible, and the options are constantly changing. I love the idea that Im never going to be stuck doing the same job until the end of my life if I dont want it to be like this. . Hult really supports me and my ambitions and truly believes that we deserve to be considered as professionals as well as students. Here, I get to express not just my opinions but all elements of myself. From my creative side with the Fashion Society to my finance and business sides in Trading Club and the Management Consulting Club. We get a different type of learning here. Not just essential knowledge and theory, but practical skills and mindset. The school is always evolving. We’re encouraged to innovate and to always look for new ways of doing traditional things. We learn how to be more confident and become aware of how we can impact our environment. The school aims to help you become a better version of yourself and to stand out from the crowd.â€Å" . Elisa Orus Plana French Bachelor of Business Administration Class of 2021 Say a big hello to our Bachelor of Business Administration program cover star, Elisa Orus Plana âÅ" ¨ . â€Å"I’m excited for the future—especially that I cant predict whats going to happen. Maybe Ill end up in Mexico working for a trading company or maybe in Africa, developing my own business. Everything is possible, and the options are constantly changing. I love the idea that Im never going to be stuck doing the same job until the end of my life if I dont want it to be like this. . Hult really supports me and my ambitions and truly believes that we deserve to be considered as professionals as well as students. Here, I get to express not just my opinions but all elements of myself. From my creative side with the Fashion Society to my finance and business sides in Trading Club and the Management Consulting Club. We get a different type of learning here. Not just essential knowledge and theory, but practical skills and mindset. The school is always evolving. We’re encouraged to innovate and to always look for new ways of doing traditional things. We learn how to be more confident and become aware of how we can impact our environment. The school aims to help you become a better version of yourself and to stand out from the crowd.â€Å" . Elisa Orus Plana French Bachelor of Business Administration Class of 2021"> During the final days of 2019, you probably reflected on what you’ve accomplished this year—and even this decade—and what you’d like to achieve in 2020. Let us know in the comments below. During the final days of 2019, you probably reflected on what you’ve accomplished this year—and even this decade—and what you’d like to achieve in 2020. Let us know in the comments below. â€Å"The first time we did group work on the program, I went head-to-head with a colleague. It taught me a lot about how I see people, how people see me, and how conflict can be resolved in a kind and productive way. The best feedback you get, when delivered constructively, is the most critical because it really feeds into how you lead. I’ve completely reversed my leadership style—the result is so much richer and more powerful when you lead from behind and lead with strength. . Studying in tandem with working, whilst challenging, gave me the perfect platform to directly apply learning concepts into my business environment, the competitive landscape, and the real-estate industry as a whole. When I started the program, I was very happy in my corporate role. But my courage and aspirations grew to the point that I took on a whole new direction. Having my career coach, Joanna, as a sounding board allowed me to really be strategic and get to know myself. She coached me thro ugh all the interviews, the research, and the questions. It went in parallel with what I was doing academically and after six months everything just clicked. . I went into the EMBA knowing I had nothing to lose and I’ve come out with everything. Great strength, global friends, amazing learning, mentors from professors, a job I love, and the knowledge that I can set my mind to achieve anything and with the right support and resources I’ll get there.† . Kashani Wijetunga British, New Zealand Sri Lankan Associate Director Senior Strategy Consultant CBRE EMBA Class of 2019 . â€Å"The first time we did group work on the program, I went head-to-head with a colleague. It taught me a lot about how I see people, how people see me, and how conflict can be resolved in a kind and productive way. The best feedback you get, when delivered constructively, is the most critical because it really feeds into how you lead. I’ve completely reversed my leadership style—the result is so much richer and more powerful when you lead from behind and lead with strength. . Studying in tandem with working, whilst challenging, gave me the perfect platform to directly apply learning concepts into my business environment, the competitive landscape, and the real-estate industry as a whole. When I started the program, I was very happy in my corporate role. But my courage and aspirations grew to the point that I took on a whole new direction. Having my career coach, Joanna, as a sounding board allowed me to really be strategic and get to know myself. She coached me thro ugh all the interviews, the research, and the questions. It went in parallel with what I was doing academically and after six months everything just clicked. . I went into the EMBA knowing I had nothing to lose and I’ve come out with everything. Great strength, global friends, amazing learning, mentors from professors, a job I love, and the knowledge that I can set my mind to achieve anything and with the right support and resources I’ll get there.† . Kashani Wijetunga British, New Zealand Sri Lankan Associate Director Senior Strategy Consultant CBRE EMBA Class of 2019 . â€Å"It was now or never. I knew that I’d have likely stayed in my neighborhood for years to come if I didn’t take this opportunity. I’d not lived or studied outside of the U.S. before. So I left my job as a global strategist at an advertising agency and moved halfway around the world. I’ve come back a more culturally aware, well-versed person. I’ve realized that everything is a learning experience and an opportunity for growth. Ill definitely carry this mindset with me into the future. Technology and social media allow us to be different people in several places at once. Im excited to see how I can establish myself in whatever city Ill be lucky enough to call home and still maintain deep connections with people all over the world. I’m inspired by my classmates every day. Hearing some of their life stories and how getting this degree fits into their greater mission has been very humbling. My biggest challenge has been finding the ‘right’ path for me. There have been rooms Ive felt like I shouldnt be in, but now Im proud to feel as though I truly belong, wherever I am.† . Dwayne Logan, Jnr. American MBA Class of 2019 . â€Å"It was now or never. I knew that I’d have likely stayed in my neighborhood for years to come if I didn’t take this opportunity. I’d not lived or studied outside of the U.S. before. So I left my job as a global strategist at an advertising agency and moved halfway around the world. I’ve come back a more culturally aware, well-versed person. I’ve realized that everything is a learning experience and an opportunity for growth. Ill definitely carry this mindset with me into the future. Technology and social media allow us to be different people in several places at once. Im excited to see how I can establish myself in whatever city Ill be lucky enough to call home and still maintain deep connections with people all over the world. I’m inspired by my classmates every day. Hearing some of their life stories and how getting this degree fits into their greater mission has been very humbling. My biggest challenge has been finding the ‘right’ path for me. There have been rooms Ive felt like I shouldnt be in, but now Im proud to feel as though I truly belong, wherever I am.† . Dwayne Logan, Jnr. American MBA Class of 2019 . Happy New Year, Hultians! . Happy New Year, Hultians! .