The Future of Business Education
The MBA landscape is shifting, and the question of career ROI for an MBA has never been more relevant. In a recent discussion hosted on the All Else Equal podcast, three esteemed experts from leading business schools—Wharton, Stanford GSB, and Chicago Booth—examined the current state of the MBA, the challenges it faces, and how institutions should respond. The conversation features Jules van Binsbergen, a finance professor at Wharton; Jonathan Berk, a finance professor at Stanford GSB; and Madhav Rajan, Dean of Chicago Booth School of Business. Their perspectives shed light on the growing debate over the future of business education. In particular, they focus on how MBA programs must evolve to stay relevant in an increasingly complex corporate world.
We’re sharing some of the highlights of their conversation and our thoughts below. But listen to the full podcast episode for a complete picture of their thought-provoking discussion.
Challenges and the Future of Business Education
Over the past two decades, numerous lower-tier business schools have shuttered their full-time MBA programs. Schools outside the M7 find it increasingly difficult to justify the opportunity cost of a traditional MBA. As Booth’s Dean Rajan pointed out, “The two-year full-time MBA program in those types of schools is basically not viable anymore… The hurdle for that has gotten higher and higher.”
The classic two-year MBA remains valuable at top institutions. Yet some prospective students hesitate to leave well-paying jobs for two years. According to Rajan, the thinking goes something like, “If I get into one of the top schools, then I’ll think about doing an MBA. Otherwise, I’ll keep my job.”
While alternative formats such as part-time, executive, or online MBAs may work for some candidates, the traditional full-time MBA remains unmatched in immersive learning, career acceleration, and network-building. Schools that commit to preserving the quality of the full-time experience will continue to attract top talent, reinforcing the MBA’s ROI and securing the future of business education.
Curious about your chances of getting into a top B-school? Contact us to talk strategy with a free 15-minute advising session with an SBC Principal Consultant.
The Erosion of Rigor—And Its Consequences
One of the most striking themes of their conversation was the perception that MBA programs have softened academically. The rigorous, quantitative foundation that once defined top-tier business education has eroded. A key reason for this shift? Student preferences.
“The kinds of jobs that students want to get, even in a field like finance…are very different from what they were 15-20 years ago,” Rajan explains. “There’s no question that the MBA in those days was a lot more technical, analytical, and rigorous.”
In other words, today’s MBA students want to learn how to manage technical people, not become technical themselves, he notes. Business schools have responded by shifting toward experiential learning—think private equity labs rather than deep dives into financial theory.
“The MBA has become a much broader degree than it used to be,” says Rajan. “Now, the MBA is for someone who has been working in something and isn’t quite sure that’s what they want to do for the rest of their life, isn’t super happy, and is trying to figure out what else is out there.”
If MBA programs aren’t teaching students how to think rigorously, Berk argues, they are undermining the degree’s long-term value.
“We’re probably biased because we’re accounting and finance professors,” Van Binsbergen admits. “But it seems to me that if the rigor was maintained—or even increased—I think the value proposition could be more easily made.”
Changing Employer Expectations
While schools have made MBA programs more flexible and less technical, the corporate world has moved in the opposite direction. Employer expectations for MBA graduates have evolved, emphasizing leadership, strategic thinking, problem-solving, and adaptability.
Some might argue that the degree has become less rigorous at a time when companies require more from their hires. This shift raises a fundamental question for students and the future of the degree itself. Namely, are MBA programs keeping up with employer expectations?
Berk believes, “The ability to think strategically is more valuable today than it’s ever been, and at the same time, the programs have moved away from that thinking.”
MBA curricula must evolve to meet these expectations as industries demand more data-driven decision-making, substantial strategic insight, and advanced leadership skills. The top-tier programs still deliver a strong foundation in these areas, but schools must double down on rigor to avoid losing relevance in an increasingly competitive landscape.
“The more rigorous the education, the better we’re preparing students for the future that’s to come,” says Rajan.
The Role of Admissions in Shaping MBA Rigor
Admissions policies also play a role in the shift. Rajan highlighted how MBA programs now attract students who are more interested in career switching than deep technical mastery: “More and more, the MBA is for somebody who has done an undergrad, worked in something, isn’t quite sure that’s what they want to do the rest of their lives, and is trying to figure out what else is out there.”
Considering an MBA? Our Advice for Career Switchers
As students prioritize career transitions, schools have adjusted by offering broader, less technical curricula. Jules van Binsbergen raised an important question: “Do you think that the pool of students we admit also fits that model better and therefore does there exist an alternative model in which a super rigorous education could be offered?”
The challenge for schools is balancing accessibility and prestige while maintaining the rigor that once defined the MBA experience.
Admissions decisions shape the DNA of an MBA program. Top schools continue to attract highly driven candidates with strong analytical abilities. Applicants should know that demonstrating technical proficiency, leadership, and intellectual curiosity remains key to gaining admission.
While some programs may have softened, the M7 schools still set high standards. The best applicants will be those who actively seek rigorous coursework and display a willingness to be challenged academically.
MBA Programs Must Reinforce Their Core Strengths
Despite valid concerns about the future of business education, Rajan believes that top-tier institutions still hold significant value—particularly when they focus on providing a rigorous education. Elite business schools can differentiate themselves by recommitting to the core strengths of an MBA. That means emphasizing analytical rigor, strategic thinking, and problem-solving skills.
MBA programs that double down on their strengths—critical thinking, leadership development, and global business training—will continue to thrive. In doing so, top-tier MBA graduates will gain access to the most sought-after jobs, advance faster, and reap long-term financial and professional benefits.
The Long-Term Outlook
Rajan notes that today’s most generous donors often come from the era when business education was at its most rigorous. He adds that the people who donate the most to their alma mater aren’t the ones who had the most fun—they’re the ones who feel the school changed their life.
“If we’re not providing an education that changes people’s lives and their career trajectories… then we’re never going to be able to raise money from them.” Rajan predicts.
This suggests that maintaining high academic standards isn’t just about education—it’s about ensuring future financial support from successful alumni, underscoring the crucial role each student plays in the future of the program.
The MBA’s Value Is What Schools Make It
For now, the traditional two-year MBA network, immersive learning, and career services remain the gold standard for leadership development and career acceleration.
Despite the challenges, the future of business education in top MBA programs remains strong. The degree’s core value—rigorous training, elite networking, and career acceleration—remains intact at leading institutions, providing a solid foundation for the future. But business schools must resist the temptation to water down academic rigor or chase short-term trends.
At its best, the MBA remains a transformational experience that equips graduates with the tools to lead and innovate. However, as Rajan, Berk, and van Binsbergen highlighted, the future of the degree depends on whether schools can maintain academic rigor while evolving to meet changing student and employer expectations.
For serious professionals seeking to maximize their potential, a top-tier MBA is still the best investment in their future. The key is selecting a program that maintains high academic standards, fosters deep professional relationships, and delivers real career ROI.
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Here’s a snapshot of the caliber of expertise on our SBC team.
Ashley
Ashley is a former MBA Admissions Board Member for Harvard Business School (HBS), where she interviewed and evaluated thousands of business school applicants for over a six year tenure. Ashley holds an MBA from HBS. During her HBS years, Ashley was the Sports Editor for the Harbus and a member of the B-School Blades Ice Hockey Team. After HBS, she worked in Marketing at the Gillette Company on Male and Female shaving ...
×Pauline
A former associate director of admissions at Harvard Business School, Pauline served on the HBS MBA Admissions Board full-time for four years. She evaluated and interviewed HBS applicants, both on-campus and globally. Pauline's career has included sales and marketing management roles with Coca-Cola, Gillette, Procter & Gamble, and IBM. For over 10 years, Pauline has expertly guided MBA applicants, and her clients h ...
×Laura
Laura comes from the MBA Admissions Board at Harvard Business School (HBS) and is an HBS MBA alumnus. In her HBS Admissions role, she evaluated and interviewed hundreds of business school candidates, including internationals, women, military and other applicant pools, for five years. Prior to her time as a student at HBS, Laura began her career in advertising and marketing in Chicago at Leo Burnett where she worked on th ...
×Andrea
Andrea served as the Associate Director of MBA Admissions at Harvard Business School (HBS) for over five years. In this role, she provided strategic direction for student yield-management activities and also served as a full member of the admissions committee. In 2007, Andrea launched the new 2+2 Program at Harvard Business School – a program targeted at college junior applicants to Harvard Business School. Andrea has also served as a Career Coach for Harvard Business School for both cu ...
×Jennifer
Jennifer served as Admissions Officer at the Stanford (GSB) for five years. She holds an MBA from Stanford (GSB) and a B.S. in Chemical Engineering from University of Illinois Urbana-Champaign. Jennifer has over 15 years experience in guiding applicants through the increasingly competitive admissions process into top MBA programs. Having read thousands and thousands of essays and applications while at Stanford (GSB) Admiss ...
×Erin K.
Erin served in key roles in MBA Admissions--as Director at Haas School of Business at UC Berkeley and Assistant Director at Stanford's Graduate School of Business (GSB). Erin served on the admissions committee at each school and has read thousands of applications in her career. At Haas, she served for seven years in roles that encompassed evaluation, outreach, and diversity and inclusion. During her tenure in Admissions at GSB, she was responsible for candidate evaluation, applicant outreach, ...
×Susie
Susie comes from the Admissions Office of the Stanford Graduate School of Business where she reviewed and evaluated hundreds of prospective students’ applications. She holds an MBA from Stanford’s GSB and a BA from Stanford in Economics. Prior to advising MBA applicants, Susie held a variety of roles over a 15-year period in capital markets, finance, and real estate, including as partner in one of the nation’s most innovative finance and real estate investment organizations. In that r ...
×Dione
Dione holds an MBA degree from Stanford Business School (GSB) and a BA degree from Stanford University, where she double majored in Economics and Communication with concentrations in journalism and sociology. Dione has served as an Admissions reader and member of the Minority Admissions Advisory Committee at Stanford. Dione is an accomplished and respected advocate and thought leader on education and diversity. She is ...
×Anthony
Anthony served as the Associate Director of MBA Admissions at the Wharton School at the University of Pennsylvania, where he dedicated over 10 years of expertise. During his time as a Wharton Admissions Officer, he read and reviewed thousands of applications and helped bring in a class of 800+ students a year. Anthony has traveled both domestically and internationally to recruit a ...
×Meghan
Meghan served as the Associate Director of Admissions and Marketing at the Wharton MBA’s Lauder Institute, a joint degree program combining the Wharton MBA with an MA in International Studies. In her role on the Wharton MBA admissions committee, Meghan advised domestic and international applicants; conducted interviews and information sessions domestically and overseas in Asia, Central and South America, and Europe; and evaluated applicants for admission to the program. Meghan also managed ...
×Amy
Amy comes from the Wharton School of the University of Pennsylvania where she was Associate Director. Amy devoted 12 years at the Wharton School, working closely with MBA students and supporting the admissions team. During her tenure at Wharton, Amy served as a trusted adviser to prospective applicants as well as admitted and matriculated students. She conducted admissions chats with applicants early in the admissions ...
×Ally
Ally brings six years of admissions experience to the SBC team, most recently as an Assistant Director of Admission for the full-time MBA program at Columbia Business School (CBS). During her time at Columbia, Ally was responsible for reviewing applications, planning recruitment events, and interviewing candidates for both the full-time MBA program and the Executive MBA program. She traveled both internationally and dome ...
×Erin B.
Erin has over seven years of experience working across major institutions, including University of Pennsylvania, Columbia Business School, and NYU's Stern School of Business. At Columbia Business School, Erin was an Assistant Director of Admissions where she evaluated applications for both the full time and executive MBA programs, sat on the admissions and merit scholarship committees and advised applicants on which program might be the best fit for them based on their work experience and pro ...
×Emma
Emma comes from the MBA Admissions Office at Columbia Business School (CBS), where she was Associate Director. Emma conducted dozens of interviews each cycle for the MBA and EMBA programs, as well as coordinating the alumni ambassador interview program. She read and evaluated hundreds of applications each cycle, delivered information sessions to audiences across the globe, and advised countless waitlisted applicants. ×
Kate
Kate served in the MBA Admissions Office at Columbia Business School for over five years. In her capacity as an Associate Director, Kate advised applicants daily and reviewed hundreds of applications per cycle. She was also an applicant interviewer, a liaison to other offices within the School, and a CBS representative at events around the world. Kate managed several recruiting and operational projects for the Admissions Committee. After Columbia Business School, Kate transitioned into cam ...
×Holly
Holly worked as a member of the NYU Stern MBA Admissions team for seven years and holds an MBA from NYU Stern. In her tenure as Director of NYU MBA Admissions, Holly worked closely with admissions teams from Columbia, Michigan Ross, UVA Darden, Cornell Johnson, Berkeley Haas, Yale SOM, and Duke Fuqua on recruiting events domestically and internationally. On the NYU Stern admissions committee, Holly conducted interviews, planned and hosted events, and trained staff on reading and interviewi ...
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