The Indian MBA scene is a classic example of "how not to do things by copying others". This statement can be supported by the following facts:
- There are only a handful (about 5-7 bschools) that can be considered in the top league attracting applications from majority of the applicants base in India
- The only claim to fame for the remaining bschools is how their processes mirror either the pedagogy of certain IIMs or how they have faculty that's ex-IIMs. Thats the best that this other section really care about
- On any given day, applicants who take up the CAT (Common Admission Test), are aware of not more than 50-60 bschools in India, amongst whom there are about 30 that they will individually list down for applications
- "Case Study method" is the best that the other majority has been able to match up with, given that's something followed at some IIMs. However, majority of the bschools don't even have the intellectual capacity nor the desired objectives for such a delivery mechanism
- Majority of the bschools in India run with empty seats - a fact that has been highlighted many times in the last couple of years
What's the problem really?
These schools have a basic fault in thier DNA. They are founded by people for whom the IIM is the pinnacle of all innovations and high watermark of MBA education. There is absolutely no desire to understand (as a founder) and design benchmarks that are different and probably better than what an IIM can do for itself. But since we started copying an IIM, how can we do anything that can be better than an IIM, or in that case any other top notch bschool in this country?
This whole problem of copying and limiting one's intelligence to such standards has harmed our MBA scene already and if corrective measures are not taken right away, then it will hurt us more. Our MBA programs throughout the country are nothing but failed attempts at addressing something that is obsolete already. We don't produce grads today who are "in the zone" and know what they are doing with their careers.
The age-old problems like the "herd" behavior wherein people in middle-class India joined MBA due to a sudden golden opportunity that they saw their neighbours' children get, has added to the rot that begins with too many faulty institutions and programs.
A quick look at the representation of the Indian bschool's scene will reveal the kind of trouble we are starting into but are probably choosing to ignore:
This diagram will allow us to understand the fact that majority of our Indian Bschools are considered "Similar and Average" in nature thereby slotting them into a large category. This is significant, because all new bschools and programs that are talking almost the same language are being shunted into this category by applicants themselves. This is no media ranking. This is based more on perceptions of students who are the prospective applicants for such bschools.
The number of preferred bschools, according to this curve, is around 15% of the overall population of bschools in India. The current trend amongst these bschools is the fact that they are increasing the number of new campuses and programs under their umbrella brands. They definitely have a reason to believe that this will work. The following diagram will show you why:
About 70% of the overall CAT applicants are people who would like to get an admit into the 15% of bschools in India. The remaining 30% of the overall CAT/MBA applicants population is what majority of our bschools will have to fight for. Therefore a strategy for these 15% A category bschools should be use the flux they are receiving through their application windows and arrange for new campuses with larger intakes and new programs to take in najority of the applications they receive. This is also an excellent business proposition.
People with similar and copied pedagogy plus same levels of communication and counseling talks are left to fight for 30% of the population. This is a main reason there are seats left vacant in bschools across India.
The CMAT Factor: I would like to mention the CMAT factor here in addition to the data from CAT, wherein the new test is also an online test. Given the trends that CMAT is showing of replacing state level CET exams, there is now huge amount of doubts on the future of State level bschools that used to rely solely on CET scores to fill in their seats. Last year, under MAHA-CET, thousand of seats went vacant amongst bschools in Maharashtra. Everyone was worried if MBA is losing its charm, but the fact remained that the Share-of-Voice for these bschools in the overall scheme of things is pretty bad. With CMAT's entry, I feel the number of un-filled seats will increase and there will be overall chaos in the admission processes in this country. There are institutions in Tamil Nadu that are supposed to dedicate about 50% of their intakes to TANCET, and therefore will now have an issue in getting applications for their seats. Some also survive by training below par talent for MBA and then placing them in call-centers claiming 100% placements, but we are not talking about them here.
So the problems are defined:
(1) Perception of most bschools in India are below average and similar with no big differentiation to allow for a second segmentation
(2) There is an unbalanced bias of about 70% of MBA applicants towards 15% of the bschools in India, which is now being funnelled in through new campuses, programs, etc.
(3) With a scary trend of State MBA colleges relying on State CETs not getting their seats filled, new tests like CMAT might add to the misery
(4) There can be exponential damage in the 3 factors above which may affect many bschools and MBA institutions adversely
What's the solution?
The second wave - This would have to be the step that wil save a portion of the bschools in the mid-section of the first bell-curve, and most probably allow these bschools to be compared amongst the best in India. This second wave should constitute of the following:
(1) Get a robust and innovative new system internalized at first. Spend some money and get education experts from Harvard or Wharton to come in and map the steps that needs to be taken for developing your knowledge centers, delivery mechanisms, faculty training and classroom scheduling, along with everything that goes into making a brilliant institution
(2) Get serious about reaching out to the "early adopters" amongst MBA applicants - these are the ones who will push your ideas and messages into their networks that trust them. Directly hitting a 70% of the applicants base is impossible and neither I nor anyone else can provide you with a marketing pitch that will give these applicants the idea that applying to you is one of the best things to do this year
(3) Reach out to the applicants base in places wherein they spend most of their preparation time and places wherein they network amongst other MBA applicants. You will need your communications to be read multiple times by the same person and then that being shared amongst their networks - as soon as possible. Pace is important here, along with the engagement.
(4) Stop talking about the kind of things that will pull you into the black-hole of the 80% population. Please note that its easy and kinda no-brainer to say things that others are doing (lest you be left behind) but creating communications that identify with the requirements of students and their concerns in individual careers are more important and hard-hitting than run-of-the-mill marketing messages (No one wants to know if you got some aware somewhere - what does it mean to anyone?)
(5) Remember - Create a product that some people will love rather than a product that everyone will probably like (eg. Apple iPhone). Dedicate yourself into improving the product and get specialist for every other activity in your institution.
We can visually depit the shift of the second wave in this manner:
- There are only a handful (about 5-7 bschools) that can be considered in the top league attracting applications from majority of the applicants base in India
- The only claim to fame for the remaining bschools is how their processes mirror either the pedagogy of certain IIMs or how they have faculty that's ex-IIMs. Thats the best that this other section really care about
- On any given day, applicants who take up the CAT (Common Admission Test), are aware of not more than 50-60 bschools in India, amongst whom there are about 30 that they will individually list down for applications
- "Case Study method" is the best that the other majority has been able to match up with, given that's something followed at some IIMs. However, majority of the bschools don't even have the intellectual capacity nor the desired objectives for such a delivery mechanism
- Majority of the bschools in India run with empty seats - a fact that has been highlighted many times in the last couple of years
What's the problem really?
These schools have a basic fault in thier DNA. They are founded by people for whom the IIM is the pinnacle of all innovations and high watermark of MBA education. There is absolutely no desire to understand (as a founder) and design benchmarks that are different and probably better than what an IIM can do for itself. But since we started copying an IIM, how can we do anything that can be better than an IIM, or in that case any other top notch bschool in this country?
This whole problem of copying and limiting one's intelligence to such standards has harmed our MBA scene already and if corrective measures are not taken right away, then it will hurt us more. Our MBA programs throughout the country are nothing but failed attempts at addressing something that is obsolete already. We don't produce grads today who are "in the zone" and know what they are doing with their careers.
The age-old problems like the "herd" behavior wherein people in middle-class India joined MBA due to a sudden golden opportunity that they saw their neighbours' children get, has added to the rot that begins with too many faulty institutions and programs.
A quick look at the representation of the Indian bschool's scene will reveal the kind of trouble we are starting into but are probably choosing to ignore:
The number of preferred bschools, according to this curve, is around 15% of the overall population of bschools in India. The current trend amongst these bschools is the fact that they are increasing the number of new campuses and programs under their umbrella brands. They definitely have a reason to believe that this will work. The following diagram will show you why:
People with similar and copied pedagogy plus same levels of communication and counseling talks are left to fight for 30% of the population. This is a main reason there are seats left vacant in bschools across India.
The CMAT Factor: I would like to mention the CMAT factor here in addition to the data from CAT, wherein the new test is also an online test. Given the trends that CMAT is showing of replacing state level CET exams, there is now huge amount of doubts on the future of State level bschools that used to rely solely on CET scores to fill in their seats. Last year, under MAHA-CET, thousand of seats went vacant amongst bschools in Maharashtra. Everyone was worried if MBA is losing its charm, but the fact remained that the Share-of-Voice for these bschools in the overall scheme of things is pretty bad. With CMAT's entry, I feel the number of un-filled seats will increase and there will be overall chaos in the admission processes in this country. There are institutions in Tamil Nadu that are supposed to dedicate about 50% of their intakes to TANCET, and therefore will now have an issue in getting applications for their seats. Some also survive by training below par talent for MBA and then placing them in call-centers claiming 100% placements, but we are not talking about them here.
So the problems are defined:
(1) Perception of most bschools in India are below average and similar with no big differentiation to allow for a second segmentation
(2) There is an unbalanced bias of about 70% of MBA applicants towards 15% of the bschools in India, which is now being funnelled in through new campuses, programs, etc.
(3) With a scary trend of State MBA colleges relying on State CETs not getting their seats filled, new tests like CMAT might add to the misery
(4) There can be exponential damage in the 3 factors above which may affect many bschools and MBA institutions adversely
What's the solution?
The second wave - This would have to be the step that wil save a portion of the bschools in the mid-section of the first bell-curve, and most probably allow these bschools to be compared amongst the best in India. This second wave should constitute of the following:
(1) Get a robust and innovative new system internalized at first. Spend some money and get education experts from Harvard or Wharton to come in and map the steps that needs to be taken for developing your knowledge centers, delivery mechanisms, faculty training and classroom scheduling, along with everything that goes into making a brilliant institution
(2) Get serious about reaching out to the "early adopters" amongst MBA applicants - these are the ones who will push your ideas and messages into their networks that trust them. Directly hitting a 70% of the applicants base is impossible and neither I nor anyone else can provide you with a marketing pitch that will give these applicants the idea that applying to you is one of the best things to do this year
(3) Reach out to the applicants base in places wherein they spend most of their preparation time and places wherein they network amongst other MBA applicants. You will need your communications to be read multiple times by the same person and then that being shared amongst their networks - as soon as possible. Pace is important here, along with the engagement.
(4) Stop talking about the kind of things that will pull you into the black-hole of the 80% population. Please note that its easy and kinda no-brainer to say things that others are doing (lest you be left behind) but creating communications that identify with the requirements of students and their concerns in individual careers are more important and hard-hitting than run-of-the-mill marketing messages (No one wants to know if you got some aware somewhere - what does it mean to anyone?)
(5) Remember - Create a product that some people will love rather than a product that everyone will probably like (eg. Apple iPhone). Dedicate yourself into improving the product and get specialist for every other activity in your institution.
We can visually depit the shift of the second wave in this manner:
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