2016 Awards Business Schools Looking for a New Business Model

Extensive highly connected campuses, teams of teachers and researchers trained in the best institutions in the world, large network of foreign universities and partner companies, professional integration rates despite the crisis… Top French management schools remain a safe bet, our foreign neighbors frequently cited as an example .

though, They have the blues. Among the 32 schools affiliated with the GGE Schools of Management Branch, Ten to twelve can be considered in grave dangerLoïck Roche, its president, diagnosed.

decrease in resources

In question, in particular: a decrease in resources. fed state, Chambers of Commerce and Industry (CCIs) have reduced subsidies They paid them heartlessly. At ESC Dijon, for example, the endowment increased from 1.5 million euros in 2014 to 1.08 million in 2015 and 900,000 in 2016. Notables were spared: HEC and ESCP Europe lost nearly 13% of their workforce after the voluntary initiative-initiated departure plan From CCI in Paris-Ile-de-France.

Another fork in the schools’ sides: Apprenticeship tax reform. A recent survey by CGE revealed an average decrease in the scale (excluding the portion of training through tax apprenticeships) of 46% between 2014 and 2015. A loss of 30 million euros For the 32 conference management schools, the equivalent of 300 euros per student.

Added to these financial setbacks are structural issues, such as Middle school market saturation. In the 2015 competition, the opening of 300 additional places in part by high-ranking institutions – 50 for EM Lyon or Edhec – made it even more difficult to recruit more modest schools. The result: more than a quarter of the schools were not filled with this type of student.

New campus

However, schools need money more than ever to develop them. They have spent millions to equip themselves with digital technology and adapt their buildings to new uses. Olivier Aptel, Director of ESC Rennes, who will allocate 3 million euros over three years to the digitization plan, stated.

The new smart building opened by EM Lyon will house an incubator on the ground floor and a “Creativity and Learning Center” on the top floor.

For several years, it wasFrench business schools have also invested heavily in a staff of teachers who are able to publish in top journals. Objective: To meet CEFDG mark standards and international accreditations – Equis, AACSB, Amba, necessary (or nearly) to succeed in a highly competitive global market.

If 10-15% of the activities in a course are not digital, we run the risk of losing students’ attention. (O. Aptel)

International: a long-term investment

Despite declining resources and rising expenses, business schools do not admit defeat. Try new sources of growth. Thus, the schools double their institutions abroad: Neoma in Nankai, TBS and EM Lyon in Casablanca, Inseec in San Francisco …

Their goal: Offer an international experience to their students, they have an offer to recruit new students and possibly train them on site… “75% of the school’s growth in the next 10 years will come from our international activities with these universities as bridgeheads,” EM Lyon CEO Bernard Pelletant reckons.

ESSEC, which has just opened a new campus in Singapore, plans to put its bags in Morocco, Mauritius and possibly Mexico: “The goal is to have At least one location per continent in association with businesses in the region”, summarizes its General Manager, Jean-Michel Blanquer. Investments of several million euros will only pay off in the long term.

vein of continuing education

Executive education is another vein that schools seek to tap. But the competition is tough. To meet the demand, many have opened, such as Audencia buildings in the capital. Three quarters are already dedicated to continuing education, and in 2016 its Paris campus will host the Executive MBA already offered in Nantes, and more and more corporate training. The segment accounts for about 10% of the group’s sales volume, and the idea is to reach 15% in 2020.

FBS wreck survivor Groupe ESC Clermont, who has just regained her master’s degree and place at BCE (Combined Evidence Bank), relies specifically on an executive education to find a second wind. Her ambition: to increase revenue from 11% to 15% in two years.

fundraising development

Business schools are increasingly turning to fundraising. “By recruiting our graduates, companies have access to well-trained ‘products’In other words, the profiles that create performance. They should support the model by helping us financially‘, pleads Frank Bornois, CEO of ESCP Europe, who hopes to surpass the €2.5 million limit raised in this way in 2015.

In 2013, out of 12 schools that initiated fundraising, only four raised more than €500,000.

As a leader in this field, HEC raised just over €110 million at the end of 2013 over a five-year period. And for the next group, their new manager, Canadian Peter Todd, has the intention of doing even better! But not everyone has the striking power of Joy-en-Gossas: in 2013, out of 12 schools that embarked on the fundraising adventure, only four raised more than €500,000.

New mode, new glade?

Consular schools are finally counting on it The new headroom provided by EESC mode (Consular institution of higher education). “We can recruitretaining the best international researchers as well as senior executives, Without reference to consular remuneration rules entirely inconsistent with the competitive environment of our professions. We will be able to buy consulting firms, develop affiliates abroad… “Block Roche welcomes you.

but also “We suggest companies invest in our schoolsFrançois Bonvalet, managing director of TBS, adds, is currently under discussion with several of them.

Towards an increase in tuition fees?

But all these deposits will not be profitable immediately, and in the short term, ESCs will find it difficult not to increase tuition fees. They have already advanced by an average of 7.6% between 2013 and 2015. “Part of the schools’ resources are decreasing, and there should be increases almost everywhere,” emphasizes Olivier Auger, Edhec’s general manager.

Some schools no doubt already beyond reasonable ; Dozen view tuition fees almost disgusting.
(El Roche)

This summer, Lille’s school has caused a lot of ink to flow by increasing the annual registration fee for the Grande Ecole from 12,500 euros to 12,900 euros. “We are fully aware of the investment this represents, but we must continue to finance our development. We must not forget thatThe student costs us approximately 20,000 euros per year’ continues the director. In the end, the idea is Practice tuition fees as close to the true cost as possible, which will make it possible to fund scholarships for the less affluent. “20% of ESC students benefit from scholarships, the goal is to reach 40% in 2020.”

Be careful not to break the game, warns Loïck Roche. Not all schools have this leeway. Some schools may already be beyond reasonable ; Dozens of tuition fees is almost exorbitant.”

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