Master’sLeadership Symposium 2019

Sangeet Chowfla

President & CEO

GMAC

A world where every talented person can benefit from the best business education for them

Provide the tools and information necessary for schools and talent to discover and evaluate each other

OneGlobal, nonprofit association

900+pieces of content developed and delivered

7000+programs worldwide trust the GMAT exam to build diverse classes

500,000+names in our database of qualified candidates

250,000+business school candidates take the GMAC Assessments yearly

150,000+GMAT score reports sent to business master’s programs annually

7,000,000unique visitors to digital properties:mba.com, businessbecause.com, gmac.com

Our agenda

Our path

forward

Student mobility

GME forces

$59,886 $58,432 $55,839

$91,626$84,692

$73,175

APAC North America Europe

MiM MiF

GME continues to be a valuable investment

Median starting salaries of Economist and Financial times ranked programs,

2018 - 2019

Projected median base starting salary by program location 69% of

APAC companies

plan to hire MiMtalent in

2019; 67% in Europe

and 33% in the US

GMAC (2019) Corporate recruiters Survey. Available at

gmac.com/market-intelligence-and-research

Alumni rating of the overall value of their graduate management education

GMAC (2018) Alumni Perspectives Survey. Available at gmac.com/alumniperspectives.

35%24% 21%

44%

47%42%

17%24%

28%

4% 5% 9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

ALL GME MiF MiM

Outstanding Excellent Good Fair/Poor

Masters saw growth year-on-year

gmac.com/apptrends2019

Weighted Absolute Year-on-Year Change in Total Applications,* by Program Category

*A weighting methodology was applied to the absolute year-on-year change sample to adjust for the regional distribution of selective GME programs globally using data from AACSB, EFMD, and AMBA.

-3.1%

-6.9%

5.4%

-10%

-5%

0%

5%

10%

Overall (n=665) MBA (n=371) Business Master's(n=276)

Year-

on-Y

ear

Change in A

pplic

ations

Program Category

• 48% of programs, 32% of applications, and 36% of available seats

• 67% of candidates consider a Masters program type

• Top 3 programs by volume:

• Master of Finance (24%)

• Master of Data Analytics (14%)

• Master in Management (14%)

Masters Snapshot

Global Demand for GME

34%

25%

30%

25%

0%

10%

20%

30%

40%

50%

60%

Full-time 2-year MBA Full-time 1-year MBA Master of Finance Master of Data Analytics Master in InternationalManagement

Master in Management

Canada

United States

Europe

Asia Pacific

Program interest varies by region

Program types considered

% of prospective students GMAC (2018) mba.com Prospective Students Survey. Demand for MBA and Business Master’s Programs.

50%52%

Meanwhile … GME delivery is truly global

0

10

20

30

40

50

North America Europe APAC

0

10

20

30

40

50

North America Europe APAC

0

10

20

30

40

50

North America Europe APAC

Financial Times Global Rankings

Global EMBA rankings:FT top 50 programs

Global MBA rankings:FT top 50 programs

Global MiM rankings:FT top 50 programs

Candidate preference declines for the US,

grows for Europe

How, if at all, has the new US president influenced your decision to pursue GME in the United States?

18% 20%

11% 10%

13% 14%

41% 41%

0%

50%

100%

Feb'17 Dec'18

Significantly morelikely (7)

(6)

(5)

No impact (4)

(3)

(2)

Significantly lesslikely (1)

Candidates with international application plans - Preferred study destinations

0%

20%

40%

60%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

United States Western Europe Canada APAC

Non-US citizens, February 2017 – December 2018Monthly survey of mba.com registrants,candidates interested in master’s programs

0%

20%

40%

60%

2009 2010 2011 2012 2013 2014 205 2016 2017 2018

Perc

enta

ge o

f non-U

S C

itiz

en G

MAT S

core

Report

s

United States Western Europe Canada Asia

ALL GME BUSINESS MASTERS

GME applications continue cyclical shift

out of US

Access the 2019 summary report at gmac.com/applicationtrends

5.2%

1.0%

9.4%

-9.1%

6.8%

1.3%

11.7%

-3.6%

3.9%

0.9%

8.6%

-13.7%

International Domestic Total

CANADA

USA

EUROPE

CHINA

1.0%

-9.1%

1.3%

-3.6%

0.9%

-13.7%

International Domestic Total

USA

EUROPE

Change in application volumes, 2019 over 2018

All program types Business Masters

11% 19%

3% 6%

2% 4%

3% 6%

5% 7%

45% 32%

21% 28%

Ten-year trend in score sending

Global GMAT score sending in TY2010

17%

78%United States

United States

East & SE Asia

East & SE Asia

Central & South Asia

Central & South Asia

Western Europe

Western Europe

Mexico, Caribbean and Latin America

Mexico, Caribbean and Latin America

Africa

Africa

Eastern Europe Australia & Pacific Islands

Australia & Pacific Islands

Middle East

Middle East

CanadaCanada

Eastern Europe

64%

21%

-2019

EXAMINEE CITIZENSHIP SCHOOL LOCATION

25%

15%

48%

Shifts in business master’s GMAT score-

sending patterns over the last 10 years

Global GMAT Score Sending TY2009 and TY2018

45%

32%United States

17%

53%

Score sender citizenship

TY2010

TY2019

TY2019

Business Master’s Score Sending

For more, visit gmac.com/geographictrends.

School location

6% 10%

8% 13%

TY2019

Western Europe

Mexico, Caribbean, and Latin America Africa

Eastern Europe

Australia and Pacific Islands

Middle East

Canada

United States76% 54%

TY2010 TY2019

East and Southeast Asia3% 10%

Central and South Asia <1%

18% 31%Western Europe

Middle East

Canada

Mexico, Caribbean, and Latin AmericaAfricaEastern EuropeAustralia and Pacific Islands

East and Southeast Asia

Central and South Asia

TY2010

Early Warning Signals: Winners and Losers in the Global Race for Talent

gmac.com/talentmobility

• Immigration is critical for the productivity and growth of global economies.

• The rise of nationalism around the world has led to a backlash against mobility as nations turn inward and seek to keep immigrants out.

• Movement of talent across borders is critical to fueling economic growth and supporting businesses.

• The business school community must take the lead in explaining the link between immigration and innovation.

…but it’s more than just the US political climate that’s turned against mobility

• One-third of people who voted for Brexit in 2016 cited immigration as their primary reason

• In France, half of all respondents in a recent Ipsos poll say they view foreigners as a threat to French values, and 46 percent see them as a risk to the economy

• In Germany, 38 percent rate immigration as the most important issue facing the nation

• In Brazil, anti-immigrant violence is rising , and President Jair Bolsonaro withdrew the country from the UN Compact on Migration

• In India, 29 percent of people think there should be less immigration to the nation, and a further 16 percent believe there should be none at all

Wall Street Journal15/Dec/2019

Business schools face more competition for qualified applicants than ever before. More schools, program types, and country options means power has shifted from schools to candidates — selection is now a two-way process. Recruitment precedes admissions.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

TY2010 TY2019

India

Candidate needs are no longer homogenous

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

TY2010 TY2019

China

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

TY2010 TY2019

Europe

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

TY2010 TY2019

United States

Other

Canada

Europe

East and Southeast Asia

Central and South Asia

United States

62.7%

60.6%

48.0%

25%

50%

75%

Perc

enta

ge o

f non-U

S C

itiz

en G

MAT S

core

Report

s

Percentage of GMAT Score Reports Sent by Non-US Citizens to US Schools

Score sending destinations by test taking region

GMAT Score sending data, TY2010-TY2019

As GME markets mature and segment, we can no longer use a uniform approach worldwide but must develop region & program specific strategies and points of focus that reflect market needs

Our MissionProvide the tools and information necessary for schools and talent to discover and evaluate each other.

Introducing GMAC CONNECT

Solutions to meet your marketing and recruitment challenges

Help schools more effectively reach and promote themselves to highly qualified right fit candidates

mba.com

MEDIAOPPORTUNITIES

MARKETINGOPPORTUNITIES

ENGAGEMENTOPPORTUNITIES

NATIVE ADVERTISING

CONTENTMARKETING

DIGITALDISPLAY

SOCIALMEDIA

QUALIFIED LEADS

EMAILMARKETING

CANDIDATEBOOTCAMPS

FAIRS MEETUPS SCHOOLPRESENTATIONS

LIVEBROADCASTS

COMMON CANDIDATE PROFILE

1,000 stories 72 M ad impressions 500,000 qualified leads 50,000 meet ups

Developing GMAC ASSESSMENTS

The best portfolio to evaluate talent

The most reliable, secure and valid assessments for business schools

COMMON CANDIDATE PROFILE

Discovering Enrollment Matches for 300,000+ Talented Candidates Each Year

Fair, Valid and Reliable Assessment of Candidate Readiness for Diverse GME Programs

SOCIAL & EMOTIONAL

INTELLIGENCE

ESSENTIAL SKILLS

The need to give GME a voice is becoming more pressing

Data shows a slight decline of global GME applications, with a significant geographical shift in application destinations and origins (e.g. USA▼ Europe▲China▲ India▲). GME demand is mostly static but facing decentralization.

Perception that GME value is in decline

GME programs and formats have increased significantly.

Application trends and market dynamics are being amplified by geo-political contexts and require a targeted approach.

1 2Negative GME media narrative

Media coverage centered on the value of business education varies by sentiment and requires pull and push strategies to help reshape the narrative.

3Fragmented GME public policy efforts

Multiple associations do some form of advocacy but it’s not cohesive or coordinated.

School lobbying is presumably fragmented since schools face significant pressure to achieve enrollment goals and typically work in isolation from other institutions.

Consequently, the GMAC Board and schools have expressed interest in having GMAC play a more active role in building GME preference across candidates, schools, media and public policy makers.

A “Whole of GMAC” approach

Invest in a multi-year initiative that leverages the connecting points and opportunities to more cohesively unify GMAC efforts driving GME GMAC INITIATIVES

Calling All Optimists:

Increase GME preference

Media War Room:

Reshape GME narrative

PublicPolicy:

Influence GME policies

CO-MARKETING PROGRAMS

PARTNERSHIPS

Elevate the value of, and preference for GME

“Change is the law of life. And those who look only to the past or present are sure to miss the future”

-John F. Kennedy