Change management
THE master of business administration is one of the success stories of our time. Since it was first offered by Harvard Business School (HBS) in 1908, the MBA’s rise has seemed unstoppable. Having conquered America, it reached Europe’s shores in 1957 when INSEAD, a French school, launched a programme. In the past couple of decades, Asia, South America and Africa have succumbed. Today, it is the second most popular postgraduate degree in America (after education).
Whereas 40 years ago, American colleges graduated similar numbers of lawyers and MBAs, nowadays nearly four times as many students pass out with a business-school master’s degree than with a law-school one (see chart). Although demand among Americans is plateauing, the slack has been taken up by emerging markets, particularly in Asia. India now has around 2,000 business schools, more than any other country. China has fewer, but their numbers are growing quickly. It has an estimated 250 MBA programmes, graduating around 30,000 students each year. This is less than half the number it will need over the next decade, according to Hao Hongrui of DHD, a consultancy.
Yet for all its...