MBAs for Specialized Audiences

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The STEM MBA at Texas Tech University

Mary Frances Weatherly

Senior Director

Bill Pasewark

Associate Dean

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Purpose

• Discuss the trend in specialized MBA

programs.

• Describe the intent of the STEM MBA

program at Texas Tech University.

• Relay experiences in implementing and

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Problems We Faced

PROBLEM 1: Serving too many markets.

 Full-Time MBA (with over 15 concentrations)  Part-Time Night MBA

 Physician’s MBA  Attorney’s MBA

 Working Professional MBA (Weekend and Week-Block)  Dual degrees with over 10 programs outside the college  MS degrees in Acct, Fin, Mgmt, Stat, MIS

We were spread too

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PROBLEM 2

:

Isolation

Largest city between I25 and I35

BUT, in the middle of nowhere!

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Question

: How do

we convince Dallas

professionals to

quit a $100,000 /

year job to come to

Lubbock for an

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PROBLEM 3:

Ranking penetration

Business schools do not want to give up their ranking! (even if you ask them nicely)

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What did we have to work with?

 Large university – 33,000 students

 Good Reputation – primary university in western part of the state, appreciated in DFW and Houston

 Great facilities – brand new building, beautiful campus

 Faculty – values good instruction, many with STEM degrees and experience

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Game Plan

• Eliminate programs with low participation.

• Focus on programs with high placement and

quality.

• Create a specialty MBA in a niche area:

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WHAT IS A STEM MBA?

 Participants: Undergraduate degree in

Science, Technology, Engineering or

Mathematics (STEM)

 Duration: One Year

 Style: Cohort (starting Fall, Spring, or Summer)

 Location: Same Room throughout Program

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Program Characteristics

 Format: 42 Hour program

• 36 hours on campus; completed within a year

• 6 hours distance; can be taken before, during, or after on campus program (many take while still in undergraduate program)

 Curriculum:

• 30 hours MBA Core

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How does the content differ from other MBA programs?

 Not just a change in audience.

 Core classes are similar to other programs, BUT examples and cases are STEM related.

• Not used: Wal-Mart, McDonalds, Banks

• Used: Energy, Chemical, Manufacturing, Technology, Healthcare, Pharma

• Business law emphasizes intellectual property

 Non-Core courses focus on STEM topics

• Commercialization

• STEM Theories in Practice

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Students receive a schedule for the entire program prior to entry. All classes back to back, same room.

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STUDENT

DEMOGRAPHICS

 50% Engineers

 40% Hard Sciences

 5% Soft Sciences

 5% Math

Unexpected participants:

• “Gap Year” medical students

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WHY A STEM MBA?

• Innovative and unique • National emphasis on

STEM education

• Potential participants on Texas Tech campus

• Non-problematic job placement

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WHY A STEM MBA?

Program philosophy

 You entered your undergraduate to become an engineer or scientist.

 We do not want to convince you to become accountants and bankers.

 Emphasis:

Bring your scientific and engineering ideas to the market place.

Learn management and leadership skills that will make you a better engineer and scientist.

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WHY A STEM MBA?

Program philosophy

SHELL BUSINESS

STEM CORE

A STEM core and business shell will

give you an edge in the workplace.

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Evaluating a Potential Program

(what we thought about before implementing a STEM MBA)

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Why Programs Fail

Example Market Resources Benefits

Master of Renaissance Studies Estimated ten participants per year. Placement very limited. Faculty were enthusiastic. Classroom space was available.

No premium pricing or significant

increase in student credit hours.

Executive MBA Program at Large Midwestern Univ.

Untapped market in a nearby, economically prosperous metro. Faculty were offered noncompetitive compensation. University planned to keep and allocate all premium price revenues.

Financial Planning Weekend Grad Program

Degree would fulfill non-exam

requirements for CFP. Surveys suggested high demand.

Faculty was not willing to travel to a metro area to teach. The program was marketed locally and did not make.

Analysis suggested a 25 student cohort breakeven. College would retain most revenue.

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Evaluating a Potential Program

Three factors we considered:

• Market – Can we fill chairs?

• Resources – Are we capable?

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Market – Can we fill chairs?

 What audience will find the program appealing?

 What competitors are offering similar programs?

 How will the new program be promoted? (“If you build it, they will come” does not work.)

 Will existing programs be cannibalized?

 Is the market sustainable? (Will it exist ten years from now?)

Alabama Purdue

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Market – Program evolution (and trends)

Established Programs Emerging

Programs ProgramsWaning

• Professional MBAs • Executive MBAs • Part-Time MBAs • MS in Accounting • Specialized MBAs

(Healthcare, Energy)

• Corporate MBAs

(tailored and on site)

• MS in Data Science

(Big Data, Analytics)

• Full Time MBAs?

(the Wake Forest experiment)

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Market – Where can we compete?

Meanest Market in acadeMia: Dallas FW MBA

Locals

Dallas Baptist North Texas TCU

SMU

Texas Women’s Univ. UT – Dallas

UT – Arlington

University of Dallas

On-Line Targeting DFW Ashland

Baylor

Keller (DeVry) UT – Tyler UT - Dallas

University of Phoenix

Invaders (Imported Weekend Programs)

Baylor

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Market – The marketing landscape has changed:

Old School

• Pamphlets

• Static Websites • Mail Outs

• Grad Fairs

Conclusion:

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How do we recruit?

• Initial focus on Texas Tech University

• GOAL – expose as many STEM students as possible to the idea of a 1 year STEM MBA

• We are selling an idea most have not considered

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Recruiting…

Still an experiment, but:

• Utilize

− SEM Campaigns/Website Retargeting

− Social Media

− Targeted Emails

− In-App Advertising

• Staff

− Complete buy-in from every position

− Half Day Events

− Class Announcements

− STEM Organization Meetings

• Word of mouth

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Market – What made STEM students perfect for

us?

• Texas Tech is known for engineering and science. • Reputation as hard workers.

• Most have coop or internship experience.

• High level of cooperation between our college and Engineering / Arts and Science.

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Resources – Are we capable?

 Is there faculty expertise and desire to teach the necessary classes?

 Is there classroom space available?

 Will our technology accommodate instructional and distance aspects of the program?

 Do faculty members have expertise to deliver distance aspects of the program?

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Resources – Participating faculty typically:

• Have a STEM undergrad

• Worked in STEM profession

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Resources – Rawls College at Texas Tech is in a

three year old building…

…that is already being expanded.

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Benefits – Is it worth it?

 Does the program fit within the overall mission of the university?  Is there administrative support?

 Will graduates be placed in productive careers?

 Does the program bring recognition to the college (ranking? publicity?)

 Is the financial model viable?

 Is there flexibility in pricing? (fixed, differential, or market based tuition)

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Benefits – Contribution to the University Strategic Plan

Texas Tech sought to:

• Increase graduate enrollment

• Increase interdisciplinary cooperation

The STEM MBA

program mapped into

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• Obstacles we met

• Things that went right

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Obstacles We Faced

• Faculty opposition to removing a traditional

MBA

• Expertise in offering distance courses

• Developing soft skills in left-brain, quant

jockeys

• Convincing the first cohort we knew what we

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Things We Did Right

• Cohort cohesiveness

− Shirts

− Cohort names

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Things We Did Right

• Managed student expectations

(schedule and workload)

• Social events

• Minimized admission mistakes (smart people

and good people)

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Things We Need to Improve

• Overestimated spreadsheet skills (but high

interest in learning these skills)

• Differences in undergrad backgrounds (not all

STEMs are alike)

• Underestimated capable pace (STEMs can

handle it!)

• Overestimated soft skills (particularly

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