UNICON Fall Conference 2005The Case for Executive Education: Value, Impact & Relevance

UNICONBenchmarking Survey #11

State of Executive Education BusinessConducted November 2005

Presented by: Mike Malefakis

UNICON Fall Conference 2005

Summary Profile of the Respondents

40 schools responded representing 52% of UNICON members. 59% from US 21% Europe 10% Canada or Mexico 5% Central or South America 5% Asia

52% of responding schools had $7 M or less revenue, 41% had $12M or more

All schools generate revenue in custom. One school does not participate in open. 45% participate in consortium programs.

Average percentage gross revenues across 40 schools is: 39% open, 6% consortium, 54% custom (rounding short of 100%)

UNICON Fall Conference 2005

Broad Conclusions on State of the Business 88% or 35 schools experienced increases in

gross revenue from 2004 to 2005 (48% report increases in range of 1-10%) Up from 77% or 33 schools reporting year-over-year

increase in 2004

Most cited external factors for positive impact: Improved/Improving economy 19 citations Increase in demand 11 Increased focus on leadership development 6 Increased awareness of brand/reputation of school 6

UNICON Fall Conference 2005

Broad Conclusions on State of the Business (continued)

Most cited external factors for negative impact: Increased competition (from nontraditional

competitors & other B schools) 16 citations Pricing pressures & Pricing competition 8 The economy 7 Time constraints from target audience 3

UNICON Fall Conference 2005

Broad Conclusions on State of the Business (continued)

Most schools are still regional

43% (17) report 60% or more of their business comes from the region (within 750km)

68% (27) report that at least 30% of their business comes from the region

Relatively few schools are predominately international

10% (4) report 60% or more of their business is international

25% (10) report 30% or more of their business is international

UNICON Fall Conference 2005

Broad Conclusions in Open Enrollment Overall we did better than we thought we would. In

2004, 72% predicted an increase in open enrollment revenue in 2005. Reported results indicates 80% realized positive growth in OE, while 18% schools saw a decline.

31 schools (77%) are forecasting continued revenue growth in open for 2006; while 2 schools anticipate no change and 6 schools predict a revenue decline.

OE Pricing – In 2005, 26 schools or 65% plan to increase program pricing. 9 schools or 33% do not plan on a price increase. 2% will reduce price

UNICON Fall Conference 2005

Broad Conclusions in Custom Programs 89% of schools experienced revenue growth in custom

programs in 2005, In 2004 74% reported an increase

10% of schools reported a decline in custom revenue in 2005. This is down significantly from 18% reporting decline in 2004.

35% of the schools reported that the custom sales cycles lengthened in 2005, which is up from 30% in 2004. 20% reported shorter custom sales cycles down from 28% reporting shorter cycles in 2004.

Custom pricing continued to increase in 2005 with 63% (25) schools reporting increases (57% in the 1-10% range)

UNICON Fall Conference 2005

Broad Conclusions on State of the Organization

In 2005 25 schools (40%) report that faculty compensation rates went up. This is down from 25 (58%) in 2004.

In 2005 33 schools (82%) reported staff salary increases.