Financing Your Executive MBA

Financing Your Executive MBA

Choosing to do an Executive MBA is an investment in learning and personal development, with a cost in both time and money. The program costs are modest in comparison to the benefits for both the individual and the company.

The payback for the Executive MBA will be in terms of greater strategic vision and skills that can be immediately applied in your current position, leadership development, higher salary, and the opportunity to immerse yourself for two years in a stimulating and rewarding learning environment. Though an increasing number of students are self-financing their studies, the business school will at the very least expect the company to support their employee, allowing them to take the time for study, and recognizing the additional workload that they face.

Employers understand the major benefits they receive from the improved managerial and leadership skills of their employees, the reinforced loyalty, and a possible in-company project or report that looks at an issue within the organization and has the expert input of the business school faculty. In fact, more often than not the course gives students the opportunity to put into practice the theory learnt in class immediately, directly from the classroom into the boardroom. The company not only benefits from a direct return on investment from the rich course content, but also sees the increased confidence and the broader communication skills the employee brings back after each module, preparing the ground for new responsibilities.

For Marianne Vandenbosch, EMBA Program Manager at IMD, the Executive MBA program should be regarded as a win-win proposal for sponsoring companies. "You can develop your high-potential people into internationally experienced, globally-oriented managers through a series of job rotations and projects over a number of years. But with the EMBA, future stars can get there faster, and take on broader responsibilities. With our company-related assignments, the manager keeps working on the company's behalf even while he or she is doing an EMBA." Maureen Williams at Cranfield sees the benefits of a three-way partnership for the Executive MBA. "Our experience shows that learning is greatly enhanced when the sponsoring organization becomes part of a three-way partnership with the student and the School, throughout the programme.

This encourages sponsoring organisations to view the MBA program as an integral part of their own management and career development programs, integrating the requirement for personal development with the company's objectives and future plans.The MBA is a proven and very cost effective method of general management development. But it is important that the career path of individuals completing the program is carefully planned and hence the importance of the tripartite relationship."

This was certainly the case for Christine Miles, an Executive MBA graduate from the school who is now Director of Operations at Moorfields Eye Hospital. She comments, "The project in the second year enabled me to do some relevant research within my own organisation and ensured that I was able to make the move from my professional career to a management position."

The Global Executive MBA is an extremely practical program that allows participants to make a better contribution to their organizations straight away. Typically, our students are in positions of responsibility where they can really act on their ideas and implement what they learn as they go through the program. The cost/benefit analysis for the organization is extremely positive! IESE Business School

A further option for company support is the idea of ensuring higher positions upon completion of the program. Hubert Faucher at Essec explains that, "The two year p rogram is a long period for our participants. Yet over that time their understanding of their direct environment, their behavior, and their objectives will evolve very quickly. The time comes where new positions must be secured for the newly regenerated leaders that come out of the program. In recent years,75% of our graduates have moved to positions of greater responsibility within15 months of graduating." To help you with your project, we have laid out some of the key strategies for trying to secure company support for your Executive MBA.

Financing your Exececutive MBA

Due to the relevance of the content, the school feels that the company will benefit from a quick return on its investment of time and financial support as the EMBA student brings back new ideas to identify, analyze, and solve company issues. Arnold Longboy, Director of Recruitment and Corporate Relations at the University of Chicago Graduate School of Business (Europe) explains that students are urged to share as much as possible what they learn with their bosses and colleagues. Not only does this reinforce the student's learning experience, but it also provides maximum return on the company's support of the program.

Stefan Kayser, Academic Director of the Kellogg-WHU Executive MBA Program, explains that Human Resources Departments and corporate decision makers perceive the Executive MBA program as an additional strategic component of committing high potentials. He observes that managers participating in an Executive MBA program receive increased support from their organizations - both financially and timewise. "In Germany there is already a noticeable development of corporate contribution to the tuition of participants in Executive MBA programs. For instance,40% of the participants of the Kellogg-WHU Executive MBA Program in Koblenz get full sponsorship from their companies, and30% are partly sponsored."

Each Executive MBA candidate at INSEAD must have corporate endorsement to get his or her application package reviewed by the Admissions Committee. For the school this means that the employer believes that the candidate would benefit and thrive in the EMBA program, and acknowledges the necessary time commitment he or she needs to complete the program.

Undertaking an EMBA is a great opportunity. It is therefore important to have a profound discussion about one's future career, about one's credibility in the company and about a firm's willingness to invest in their own people. Dominique Héau, Associate Dean
INSEAD Executive MBA
The EMBA has helped me to understand and to deal with current issues and opportunities that I am confronted with in my company on a daily basis. The group work with my classmates in addition to the solid business and management tools taught in the program has also helped me greatly. Johan Hedberg, Director of International Sales Development
Cobra Golf, USA,Kellogg-WHU EMBA08
With the diversity of companies, functional areas, and geographical representations students gain insight and unique perspective from their classmates. It's like having potentially87 free consultants looking at a problem - not to mention the expert professors! Arnold Longboy, Director of Recruitment and Corporate Relations,
Chicago GSB (Europe)
A company can use sponsorship of the EMBA as an incentive tool in order to keep high potentials in the company and promote their careers. Stefan Kayser, Academic Director
Kellogg-WHU Executive MBA

With several years of managerial experience behind you, the next step in your career is an executive MBA. You are looking to strengthen your analytical skills, develop your leadership potential, add an international dimension to your experience and strengthen your skill set to deepen your understanding of the broader business environment. It is obvious to you that the company will reap benefits from the company project, and the tools and ideas that you can put to work right away. But how do you convince your boss and the HR Director that the time spent away from the office, in addition to the considerable tuition fees are a good investment for the company?

Getting your company to sponsor your Executive MBA

If you haven't already negotiated an Executive MBA as part of a sign-on package when you joined the company, it is unlikely that your current proposal will be signed off over an informal lunch. More often there are several supervisors who will have to sign off on the project, perhaps even the company chairman, so a document which outlines your proposal, explaining your motivation and underlining the corporate benefits, will be invaluable. Such a document requires research and thoughtful analysis, so you are well advised to give yourself lots of time. Dominique Héau, Associate Dean of the INSEAD Executive MBA advises candidates to prepare the ground during performance reviews on a regular basis. "In general, firms do not like surprises. Opportunities for careers, available options within the firm, should have already been discussed regularly - both formally during the performance reviews, and informally with mentors."

You might be a step ahead if the company already sponsors Executive MBAs and can judge their value, but otherwise you need to convince them that a given school and the commitment of your time will ultimately be to their advantage. If there are other employees who were supported by the company to do an Executive MBA, you should try to talk to them to discuss their experience and learn about internal attitudes to such training.

If the Executive MBA to which you are applying has a company assignment or electives that the company can influence, then this is a strong argument for their support. Remo Luetolf from engineering giant ABB, followed the Executive MBA at IMD, and comments that "the assignments linked with your own company provide an excellent opportunity for hands-on practice and to create immediate value and leverage for your company."

Here are a few questions to help your thought-process and a few suggestions to get you started:

What will an Executive MBA program bring you?
New managements skills and techniques to move towards increased responsibilities.
Strategic thinking, critical analysis, and a 'bigger picture' understanding.
Better communication and team-building skills.
Networking opportunities with candidates from other functional areas, companies, industries, regions, countries, enabling you to acquire a sharpened global vision.
What are the reasons for having chosen a specific Executive MBA program from a particular school?
Examples of alumni experiences either from your own company or the school.
Faculty
Geographical distance
Format (modular, weekend, ...) - this is particularly important as you will be able to show your employer that you will be away from the office for only a limited number of days / weekends.
Cost
What will your participation in an Executive MBA course bring the company?
The opportunity to carry out an in-company project is beneficial to both the participant and the company. Don't forget that you will be able to discuss issues with your classmates, thereby obtaining new perspectives on the pro blem at hand.
Your ability and commitment to share your knowledge with your managers and colleagues.
With your developed analytical and strategic skills, you will be able to contribute more efficiently and effectively to the future development of your company.
Don't scare your company! Show your managers the way:
Support needn't be all financial. Companies can show their support by being flexible and allowing you to take leave for you to be able to attend classes and complete modules.
A lighter workload can also be part of the deal enabling you to study and work on your projects during specific office timings.
If the company finds the fees daunting, you can offer to pay the 'extras' such as travel and accomodation costs while the company pays for tuition.
Show your company that you can be trusted
Talk about your commitment to share the knowledge and skills you acquire. You can suggest workshops or brainstorming sessions that you can organize once you have completed the course.
Suggest signing an agreement specifying the time you promise to stay after the successful completion of your course.
Show your company that you can project yourself within the company in the next2 -5 years. Draw up a suggested career plan.

Put together a business (school) plan

Don't forget that the business schools themselves have application deadlines to respect, so laying the groundwork several months ahead should give you time for final negotiations and conditions. It could also be that you are competing with other candidates for a limited number of sponsorships, so a formal request should ensure you will be considered when the time comes. During that time you may also need to network with the people signing off on the sponsorship - political landscapes can be tricky.

Stay ahead of the game

Business schools encourage companies to support candidates who are eager to gain personal and professional growth, while contributing to the success of the organization. For Mike Hall at the Copenhagen Business School, sponsoring managers "shows your commitment to helping them reach their personal career goals. Encouraging employee development through education builds loyalty and encourages your personnel to stay with your organization." This can work both ways. By showing your company that you are keen to remain with them and share the value of your learning experience, they will quickly offset your absence from the office every other Friday, or a week spent on a field trip. The fact that an Executive MBA student maintains his or her professional commitments is another argument in favour of the program. The Full-time MBA in comparison often signals your imminent departure, so be ready to leverage the continuity of the Executive MBA. Employers can be gently reminded that it is better to keep you by supporting your studies than lose you altogether.

Loyalty is a two-way street

Once your company has signed off on your studies, it is important to keep them informed of your progress. You are about to juggle professional, personal and academic responsibilities, and will greatly appreciate the support of your colleagues, both emotionally and practically during the length of the program. Giving updates to the company also helps the employer to recognize how you have changed, and the new skills that you have developed. This will be felt in terms of new challenges and responsibilities in line with your career ambitions.

Source: https://www.topmba.com

Mohannad Aljawamis
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