Are Business School Ready for Climate Change?

Does MBA education take climate change seriously?

One top-ranked business school is reporting a significant jump in average GMAT scores, while a departing dean reflects on his accomplishments and the challenges ahead. Catch all the trending stories for future business leaders.

Business school attracts higher GMAT scores

Top-ranked Northwestern University’s Kellogg School of Management is reporting impressive new statistics today—including one figure that shows competition for admission growing at the Chicago-area business school. First off, the average GMAT score for its entering class is 728, four points higher than last year. That score is in the 96th percentile.

Kellogg is also reporting a jump in the number of students coming from the tech sector. As faithful blog readers will remember, there’s an increasing number of graduates looking to go into the tech sector, so this seems to be coming full circle. “We are really fortunate to have a pool of great applicants across all the spectrums. The GMAT is just one element of our holistic approach to evaluate candidates. We have always valued the comprehensive applicant over scores or stats. We would never compromise that,” says Kate Smith, director of MBA admissions at the business school.

American or European MBA?

Both the United States and Europe boast outstanding business schools. For the discerning prospective MBA, the choice between the two comes down to preference and career path. Some good advice to follow: Attend a business school in the country you plan to work in. That was the case for Deepti Jodhawat, a London banker who decided to leave the United Kingdom to attend Chicago Booth. Her rationale? “I was very clear that I wanted to try working in the U.S. The MBA is understood in the U.S., it was born in the U.S., and it makes sense to do it where it’s appreciated and respected the most.” (Business Because)

Factoring climate change into MBA education

Business schools are missing the boat when it comes to climate change, argues Ebrahim Mohamed. He’s director of education at Climate-KIC, an EU-funded public-private partnership focused on addressing environmental issues. Mohamed goes on to say that what the current MBA education is offering is “obsolete” because it’s not factoring in the impact that climate change will have on the economic environment in the years to come.

“The core problem within the business school process is we’re using a model of economics that is a little bit obsolete. We don’t factor in ‘externalities’—clean air, water and so on. These are natural assets that are not really accounted for in the conventional economic model,” Mohamed says. He argues that business schools are still focused on “the old economy,” which includes globalization but not climate change impact. Many business schools already fancy themselves hotbeds of innovation, so chances are that not everyone will agree with this assessment. (Times Higher Education)

Exit interview with the dean

After five years at the helm of Georgetown’s McDonough School of Business, retiring Dean David Thomas has a lot of to be proud. He made many improvements to the business school: fundraising, increasing applications, and revamping the curriculum. But much to the chagrin of other administrators and alumni, none of this helped the school improve its standing in the MBA rankings. Or not yet, anyway.

“If I look at the momentum of the school, I would say to the next dean we now have the momentum and are clear about the levers that we need to pull and the investments we need to make to actually move to that next level, much in the way that Yale did,” said Thomas, 59, who was also once a professor at Harvard Business School. (Poets & Quants)

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