Exporting v. Localizing EMBA Programs in Going Abroad

(1)

Exporting v. Localizing

EMBA Programs in Going

Abroad

Prof. Larry Greiner, USC Marshall

Asst. Dean Patrick Moreton, Washington U. Olin

Assoc. Dean Lu Wei, Shanghai

(2)

Key Questions

How much do you adjust for local:

Management Practices, Culture, Economy, Political

Structure

Key Steps and Decision Issues:

Selecting a City Location

Finding a Good Partner

Balancing Home Requirements

Marketing the Program

Determining Admission Standards

Designing the Curriculum

Working with Local Faculty

(3)

Selecting a City Location

USC – SJTU

Shanghai is large market (many ex-pats and multinational companies) Local managers want “western” and “global” education

Local managers want U.S. MBA degree – “hot” in China Availability of partner universities

Accessible from Japan, Hong Kong, Seoul, Beijing, Tapei and U.S.

Washington University – Fudan University

University-level interest in Asia Business a logical area to explore

Sponsor’s strong encouragement to do something in China Shanghai the (now) obvious place to be

(4)

Finding A Good Partner

Washington University – Fudan University

Talked with several potential partners

Fudan in right location and Olin faculty’s preferred partner—

strong academic reputation

Original agreement gave WU day-to-day control through

selection of MD (not the case now)

Needed to invest in facilities

USC - SJTU

Lucky with SJTU interest—they came to us

SJTU – good facilities, in city, good reputation in China, 3 star

sleeping dorm, interested in broader partnership

Accepted our “control” conditions and standards

SJTU has all the political contacts and local know-how

Hired U.S. manager to run local office (USC grad)

(5)

Balancing Home Requirements

USC

-

SJTU

Make profit (breakeven first year)

No joint degree

USC controls curriculum and faculty

USC controls grading and academic policies

Washington University

–

Fudan University

Prepared to lose money initially, but not for long

Ministry of Education recognition for Olin degree

Curriculum and policies jointly approved by both schools, but

based on Olin

’

s EMBA program

(6)

Marketing the Program

Washington University

–

Fudan University

Phase 1 Phase 1

Early to market, no precedent for tuitionEarly to market, no precedent for tuition

Primarily western staff but with ChinesePrimarily western staff but with Chinese--language skillslanguage skills

Substantial contribution from both partnersSubstantial contribution from both partners

Lots of learning by doingLots of learning by doing

Phase 2Phase 2

Turnover in program office very disruptiveTurnover in program office very disruptive

New competitors/lagging competition in facilitiesNew competitors/lagging competition in facilities

Phase 3Phase 3

Applying lessons learned (media, message, and management)Applying lessons learned (media, message, and management)

Adjustments to differentiate the productAdjustments to differentiate the product

USC

-

SJTU

Setting tuition (set at 43K, highest in Setting tuition (set at 43K, highest in mktmkt, just above Olin/Fudan), just above Olin/Fudan)

Hiring a U.S. manager and local supporting staffHiring a U.S. manager and local supporting staff

Selecting the right advertising outlets (web and print) Selecting the right advertising outlets (web and print) –– high costshigh costs

Using USC offices in Tokyo, Taipei, Hong KongUsing USC offices in Tokyo, Taipei, Hong Kong

Determining message and key features (USC degree, global contentDetermining message and key features (USC degree, global content and 3 trips, and 3 trips,

integrated curriculum, convenient schedule, USC

(7)

Determining Admission Standards

USC

-

SJTU

English capability better with young (lowered years of experiencEnglish capability better with young (lowered years of experience)e)

Distaste for GMAT and TOEFL (eliminated this in return for persoDistaste for GMAT and TOEFL (eliminated this in return for personal nal

interview)

Not ready for amount of work and attendance standards (set clearNot ready for amount of work and attendance standards (set clearly in ly in

beginning and enforced)

Problems in efficient processing of paperworkProblems in efficient processing of paperwork

Washington University

–

Fudan University

Admissions jointly controlled from the beginningAdmissions jointly controlled from the beginning

Lots of Lots of ““nonnon--standardstandard”” educational backgroundseducational backgrounds

(8)

Designing the Curriculum

Washington University

–

Fudan University

New format for China (4New format for China (4--day). later introduced in USday). later introduced in US

Content the same as US, best faculty usedContent the same as US, best faculty used

Borrowed coBorrowed co--teacher model from other Fudan programsteacher model from other Fudan programs

Long residency at the end for substantial US experienceLong residency at the end for substantial US experience

Localization and Internationalization through twoLocalization and Internationalization through two--way cultural diffusionway cultural diffusion

USC

-

SJTU

Kept home Kept home EmbaEmba structure of themes, structure of themes, intnlintnl trip, single grade per theme, trip, single grade per theme,

integration, projects

Kept same faculty team from L.A. Kept same faculty team from L.A. –– high pay and business class travelhigh pay and business class travel

Adjustments:Adjustments:

Put in more Asia/Put in more Asia/intnlintnl cases, local field trips and local executive speakerscases, local field trips and local executive speakers

Set calendar for 5 days every 6 weeks (allows for flySet calendar for 5 days every 6 weeks (allows for fly--ins)ins)

One SJTU faculty lecture each visit (problematic results)One SJTU faculty lecture each visit (problematic results)

(9)

Working with Local

Faculty

Lv Wei, Associate Dean,

Antai School of Management,

Shanghai

(10)

International practice China private-sector

practice, China market demand for education

Structural Challenge in China

’

s B

-

Schools

Conflict between officially sanctioned goals and market demandConflict between officially sanctioned goals and market demand

Level of

international business practice

Time

Ministry of Education pressure/incentive for strong/exclusive research focus

=

The widening “tension gap”

for Chinese b-school faculty

(11)

Solving the Local Faculty Issue

Local perspective important, so local faculty should

ideally play role

Potential issues:

English

Lack of industry connection or ability to grasp current business

environment

International

-

level teaching approach

Short

-

term solution:

Choice 1: Emphasize those with overseas training

Choice 2: Use senior, experienced local faculty, provide

interpretation

Longer

-

term solution:

Train a generation of faculty

–

sending more overseas for

longer

-

term postings

More interaction with current industry practice

(12)

Monitoring Results

USC

-

SJTU

No negative feedback on tuition No negative feedback on tuition –– raising itraising it

Student performance is good Student performance is good

Attendance, participation and prep issuesAttendance, participation and prep issues

Marketing difficulties Marketing difficulties –– SJTU and finding right strategiesSJTU and finding right strategies

6 fly6 fly--in students from Los Angeles a surprisein students from Los Angeles a surprise

Requires continuous and intensive managementRequires continuous and intensive management

Washington University

–

Fudan University

Early success deceptive (surprisingly small market)Early success deceptive (surprisingly small market)

Localization is extremely challengingLocalization is extremely challenging

Human resources a key challengeHuman resources a key challenge

Strong support internally key (student, faculty, administration)Strong support internally key (student, faculty, administration)

Personal relationships up and down the organizations are key Personal relationships up and down the organizations are key

Lots of learning for both partnersLots of learning for both partners

Agreement extend through 2011Agreement extend through 2011

Exporting v. Localizing EMBA Programs in Going Abroad