Tenn. executive MBA program delivers the goods with the degree

<p>Mark Gunter wanted more from his master's degree in business administration than a diploma.</p><p>The 40-year-old general manager for Springs Industries wanted to know how to make his Dalton, Ga., rug mill run more efficiently to compete against Asian imports.</p><p>He received both through a senior executive MBA program at the University of Tennessee, which over the course of 12 months gives mid-career professionals lessons in finance, marketing and logistics through a real-world assignment tied to their jobs.</p><p>This practical approach to higher education might seem more apt for a vocational school. But in an environment where employers are increasingly reluctant to spend $40,000 or more on tuition for their rising managers, Tennessee gives students a hands-on experience that delivers immediate benefits to the company.</p><p>The manufacturing project Gunter developed for decorative rugs his factory makes for Wal-Mart might not save the struggling Southern textile industry. But he said with a smile, "I have found a way that will assist me in helping create a better future for Southern textiles."</p><p>Oklahoma City classmate Dr. Marty McBee, 41, is using his project to start a medical billing company that will save his Morningstar Emergency Physicians group up to $500,000 a year.</p><p>Nashville classmate Beverly Cawthon, 40, used hers to create a whole new business plan for her employer, forensics laboratory Aegis Sciences, with immediate cost savings and a projected 77 percent growth in profits in three years.</p><p>In the competitive business school environment, this focus on value separates Tennessee _ a recognized "best buy" by Business Week and No. 1 "value for the money" by the Financial Times _ from the pack.</p><p>"To be honest, we are not Wharton. We are not Kellogg," accounting professor Bruce Behn said with a nod to established top-tier programs at Pennsylvania and Northwestern, respectively.</p><p>"So strategically ... we said we have to show that we can give individual help to each of our students and (employer) organizations and show them that this investment they are making will get returns," said Behn, who frequently travels to the student's business to meet the executives, see the operation and review the balance sheets.</p><p>This approach is winning repeat business for Tennessee _ one recent graduate from FedEx attended after both his boss and his boss' boss went through the program.</p><p>"Every school is trying to prepare the prospective student to have that kind of discussion with their employers to justify it," said Maury Kalnitz, executive director of the Executive MBA Council, a nonprofit organization representing 190 colleges and universities.</p><p>"But doing this kind of very specific consulting activity is relatively new," he said of Tennessee's return-on-investment strategy. "I think it is on the leading edge."</p><p>While the number of executive MBA students sponsored by their companies has fallen to less than 40 percent nationally, 70 percent to 90 percent of Tennessee's executive MBA students attend on their company's dime.</p><p>Some companies worry it could take years before they see a payback for their business _ the Executive MBA Council's studies suggest a 17-month return on investment _ or that it will only make their employee more marketable to jump to another employer, Kalnitz said.</p><p>"Our approach is that we want students to show a return on investment when they walk across the graduation stage," said Amy Cathey, director of Tennessee's senior executive MBA program.</p><p>Over the past three years, Tennessee says its executive MBA course projects have either saved employers more than $5 million a year on average, or boosted revenue by more than $5 million a year _ depending on the student's objective.</p><p>"Even if the student leaves, for whatever reason, we want the employer to get a return," Cathey said. "And we really encourage the student to stay. By learning your organization more fully, if it is a good organization, you are more convinced to stay."</p><p>___</p><p>HASH(0x1cdf644)</p>

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