“Their funding is the # 1 problem in business schools. “Chairman of the chapter of the management schools in the CGE and Managing Director of Grenoble EM, Loïck Roche is convinced that” schools are in danger “in the face of laws passed in the last two years that are” all bad ” Either on the learning tax – 50% of lost collection! – or internships: “By reducing the internship period to six months, we condemn the year of caesura and we therefore attack our ability to integrate our graduates, so our model”.
In an interview published in Le Figaro in May Alice Guilhon , the director of Skema, also felt that “major risks weigh on the position of our institutions on the international scene” because “shaken by these too often inappropriate political decisions, By a lack of recognition within the political sphere “. In his mind “schools must and will react in the current French context that is unfavorable” constrained to “make strong decisions, change their business model, except to disappear”.The buildings of the Essec in Cergy-Pontoise
Savings and new means
A few weeks ago, Frank Bournois, the director of ESCP Europe, made no secret of this: between the reduction in the apprenticeship tax and the subsidy from the Paris Ile-de-France CCI, 10 million Euros (out of a budget of 90 million) which it will miss in 2016. Committed like all its ICC in a vast plan of economy that will oblige to him to reorganize, it also intends to develop new resources and, at the first Head, continuing education and fundraising. “We have only three ways to finance ourselves: tuition fees, companies and foundations,” confirms Loïck Roche. “Our mission is first and foremost academic, but it is also a business! Fortunately we depend on both the apprenticeship tax and our chamber of commerce and industry.
How to develop continuing education?
Today, higher education institutions account for only 3.1% of the vocational training market: for universities and all public higher education institutions in 2011 this represented just over 410 million euros out of 32 billion Of which, it must be remembered, two thirds are salaries paid to learners. In HEC schools (45% of the budget is more than 40 million euros) and a few large ones such as Essec (25%) or The EMLYON (20%). To realize margins, it is necessary to prove the added value of its formation. “The best way to prove our potential impact is to turn research into continuing education programs,” says Olivier Oger,
But the consular schools also need a new form of governance to develop, says Loïck Roche as the former chairman of the strategic board of Grenoble EM, Thierry Grange, which ensures that “management schools are high-level athletes Who come back wearing medals in under-funded sports clubs that belong to institutions that are not necessarily the best owners. ” Not legally present as simple departments of chambers of commerce and industry of schools such as Grenoble EM or HEC hope a lot of the new status of EESC (institution of higher education consular, read the interview with Jean-François Fiorina, director Deputy of Grenoble EM further down). “Let’s implement what we teach our students in our schools! Asked Loïck Roche.
The bachelors of growth
While the number of candidates from pre-school classes stagnates as parallel admissions, bachelors are today the main growth drivers of management schools. The students interviewed as part of HEADway’s study (see opposite) find the bachelor “more reassuring” than the university and “less random” than the preparatory class. 28% did not apply for a pre-school class, a 5-year program or university. Attracted by a selective channel, they will continue most of their studies. And often in the school where they followed their bachelor’s degree!
The air of the sea
The ability of French higher education institutions, and particularly management schools, to attract foreign fee-paying students is crucial to their future. “The attractiveness of students for higher education in management, driven by the growing needs of companies, makes this sector a true Eldorado on an international scale, regulated by systems of accreditation and quality now well established, “Said Olivier Aptel, director of ESC Rennes School of Business.
How to resist Uber schools?
Loïck Roche feared it: “Tomorrow the education leader may not own a single school” as Airnb does not have housing: “We are faced with a generation educated in sharing, not in possession, Adapt to them so as not to be overwhelmed by new low cost actors, simple aggregators of content produced by others. In the wake, it was learned that OpenClassrooms and Studialis (see opposite) were teaming up to “launch the first course entirely made up of MOOCs and leading to the issuance of an RNCP title” …
Olivier Rollot (@O_Rollot )
WHY BUSINESSES WOULD INVEST IN THE SCHOOLS OF MANAGEMENT: INTERVIEW WITH JEAN-FRANÇOIS FIORINA, DEPUTY DIRECTOR OF GRENOBLE EM
Schools managed by chambers of commerce and industry (HEC, Essec, ESC Dijon, etc.) will soon be able to adopt a new so-called EESC (Consular Higher Education Institution) status. Within this framework companies will be able to enter up to 33% in the capital of schools, 51% remaining obligatorily in the hands of their ICC. Deputy Director of Grenoble EM, Jean-François Fiorina explains which companies are likely to be interested.
Olivier Rollot: What interest for a company to enter the “round table” of a school when it can neither be a majority nor receive dividends?
Jean-François Fiorina : Any student in finance would look up to heaven before such a proposal! And yet I have identified five groups of companies that might be interested, French and foreign. First, private training groups that would like to consolidate their image by investing in a kind of “flagship” that would bring them in terms of image and that, well managed, could one day be realized in cash and stumbling.
Then private investment funds, already interested in education, both for the same reasons and to pool their banners. We are at the forefront in many areas and many of our know-how could be monetized by creating appropriate marketing subsidiaries to generate revenue.
Other training groups, but in different fields, might want to be present in other segments with us. Again, considering pooling.
O. A: Do not you imagine other types of business than training companies?
JF. F : These could also be companies that, if they are not directly in training, own corporate universities. While they can not issue diplomas, they could rely on a management school in a logic of consolidation of their offer. For us it would also be an opportunity to learn techniques and reach a new audience. For both to increase our leadership. Together we could produce serious games like MOOC to go teach directly in the company.
O. R: Here again we remain close to training! Companies could not be interested without thinking necessarily to develop their training axis?
JF. F : A multinational company, which is looking for talent around the world, may also be interested. But I find it more interesting to imagine an agreement with an Internet company (Microsoft, Cisco, etc.) for which we would be an R & D lab. Together we could test technological solutions in higher education on a Perimeter and then market them. The technology market of the future is colossal and invest in a management school a small investment that can bring back big! Grenoble EM is present all over the world and can, for example, test new teleworking solutions. Without being subservient we could find a smart way to work together on projects.
O. A: No one can want to invest for pure altruism?
JF. F : With less than one old boss of the school who is not accountable to anyone, prospective investors must find their interest. For example, a company may want to identify talent. A consulting firm could consider developing a comprehensive and practical research program with a management school. Finally local companies may consider it essential for them to have a strong business school within their perimeter.
O. R: The implementing decrees of the law establishing the EESC are not yet published but some schools are already advancing well on the project with a central question: how much is a school of management worth?
JF. F : It’s impossible to say today because we are in a totally new situation. Of course there are private groups but they are in a different logic than us. What we bring is value, but also more stability and coherence than these groups. The bet for these companies will be to say that the value of their share will increase. We give ourselves for two years to adopt this status.
O. R: But what will the management schools bring to this new status in the end?
JF. F : It will allow us to take a new course without being always in the short term. Tuition fees have reached their limits and we have to find ways to invest in digital digitally. It will simplify and perpetuate our funding in order to give us the means to continue playing in the heart of major international business schools.