Illinois Graduates 1st Cohort From $22K iMBA - Poets&Quants

Illinois’ iMBA graduates its first cohort on Saturday (May 12). Photo courtesy of Gies College of Business, University of Illinois

They came for the low cost and stayed for the experience — and the low cost. On Sunday (May 13), the first 76 graduates of the University Illinois’ Gies College of Business iMBA will receive their degrees in a convocation ceremony at the school’s Champaign campus, the culmination of two years’ hard work that came with a yearly tuition bill that was by far the lowest of any major university’s online MBA: $22,000.

The Illinois iMBA program launched in January 2016 as a partnership with the online education platform Coursera. Styled as a “reimagining of the online MBA,” the program aims to “deliver quality affordable education at scale,” says Dean Jeffrey Brown, and encourages students to try for free single “stackable” classes that interest them rather than a linear slate of coursework, then pursue a degree if they decide they like the format and quality. It’s a model that the school says has been rated excellent or good by 98% of student participants; it certainly helps keep satisfaction levels high that classes in the iMBA are taught by the same faculty that teach Illinois’ on-campus MBA, a program ranked in the top 50 by U.S. News & World Report and nearly that by Poets&Quants. Enrollment, meanwhile, has climbed quickly and steadily, and now stands at about 1,100 students, with hundreds more to join in the fall.

For many, perhaps most, the key appeal to the Illinois iMBA is the $22,000 price tag, which was designed to open the doors of business education to a segment of the public that may never have been interested or able to afford it. “We have expanded access to high-quality graduate-level business education by reducing geographic and financial barriers,” says Brown, who was involved in the creation of the iMBA from the start, even before he became dean in August 2015. “By re-engineering how we teach, we are delivering an affordable and transformative MBA experience for talented people across the globe. It’s innovative and making a global impact.”

Brown tells Poets&Quants that for now, at least, Illinois has no plan to take advantage of its success by increasing tuition.

‘WE BROKE UNWRITTEN RULES AND WROTE NEW ONES’

Gies College of Business Dean Jeff Brown

The Gies College of Business iMBA’s first graduating cohort is just 26% female, but it’s diverse, with 25% international students and 31% under-represented minorities. They’ve got more work experience than you find in most programs, at an average of 12 years; and the average undergraduate GPA is respectably high, at 3.37. (No GMAT or GRE are required to gain admission to the iMBA — another huge appeal for potential applicants.) The new grads themselves — along with those currently in the program and those about to be — are part of what the college calls a “disruptive approach” to earning an MBA that has so far attracted learners from 46 states and 56 countries, “from Arkansas to Beijing,” as the school says in a news release. The just-graduated crop of MBAs range in age from 22 to 61 years old, for an average age of 37, another unusual data point.

For most, the initial appeal of the program was certainly the price tag. Illinois’ iMBA costs a fraction of a degree from an elite school, where the median cost is roughly $171,000 and can break the $200,000 mark at the far end of the scale. Illinois’ own residential two-year MBA costs more than $100,000. Arshad Saiyed, executive director of online programs at the Gies College, acknowledges that the low cost brought the program to many prospective students’ attention — but says the iMBA has kept students around through a combination of high-quality instruction and successful community building. “We broke unwritten rules and wrote new ones,” he says in the school’s announcement of the convocation ceremonies. “We drew attention with a disruptive price point well below our peers, but the program’s success has hinged on the power of the University of Illinois brand and how we offer classes, how we teach learners, and the unique ways we connect students to each other and faculty.” Yuhai Xuan, academic director for the iMBA and associate professor of finance, adds that the faculty attribute the iMBA’s high retention rate — estimated to be north of 92%, an impressive data point coupled with the program’s yield rate of north of 95% — to a natural shift from trial to loyalty. They also cite the learning environment and opportunity to connect with learners from around the globe.

That’s partly what caught the eye of Christin Gomes, one of Illinois’ new iMBA grads. Gomes works in marketing and says she hopes to use her degree to not only advance her current career but also boost an entrepreneurial endeavor she plans to pursue shortly after graduation. “I was researching top MBA programs, and I saw an article from U.S. News about the program and decided to explore more,” she tells Poets&Quants. “The most important things to me in deciding on an MBA program were choosing a top-tier university with a great reputation, strong global alumni network, and the ability to specialize in marketing with a flexible approach. U of I offered all of these things at an extremely reasonable price. It was a no-brainer for me.”

A LONG-TIME PROFESSOR PRAISES THE NEW FRONTIER

The program’s on-demand and live virtual teaching methods create what one professor styles as “relevant, real-time learning,” and the iMBA’s approach allows for the development of projects that connect people from different backgrounds who have a passion for the same subject. Hence the success in community building. It’s also been a success in faculty adaptation. “It’s completely changed my approach to teaching,” says Larry DeBrock, dean emeritus, professor of finance, and professor of economics,who has taught in the College of Business for 39 years. DeBrock now teaches a weekly live video class session for the iMBA. “Our class format relies heavily on prepping all material in advance so that during class we’re not relying on static images of me standing at a lectern with a PowerPoint presentation. Instead, we may start an economic markets class looking at a sea of faces telling us what gas prices are in their city. It’s relevant, real-time learning created by real world conditions.”

Using Coursera’s mobile app, students with jobs and otherwise busy lives can complete the degree on-the-go — a feature all online degrees will likely need to have in future, says Jeff Maggioncalda, CEO of Coursera.

“Universities must play an expanding role in preparing people for the demands of the workplace, and the University of Illinois is leading the way with the iMBA,” Maggioncalda says. “We have opened up the possibility of earning a highly ranked MBA by making open online courses the gateway to these degrees on a technology platform that enables unprecedented flexibility for students.”

Those massive open online courses, known as MOOCs, were integral to Zubair Ahmad’s interest in the iMBA. An engineer considering a move into product management in the tech space, Ahmad came to the iMBA through Coursera’s MOOCs. “I knew that I wanted to learn business skills and move toward a business job within the tech industry,” Ahmad tells P&Q, “so I started exploring platforms to get this knowledge in a more affordable and flexible method. I was taking MOOCs on Coursera and that is where I heard of the iMBA program. It stood out to me for three key reasons: very affordable tuition, strong brand strength of UIUC, and the flexible online delivery that incorporated live classroom sessions.”

The Gies College of Business graduates its first iMBA cohort on Saturday (May 12). Photo courtesy of Gies College of Business, University of Illinois

In fact, the handful of new graduates of the Illinois iMBA contacted by Poets&Quants had mostly positive feedback about the degree, with some minor quibbles thrown in for good measure. Brad Lindaas, who was recently hired to be president of 95 Percent Group, an education company in Lincolnshire, Illinois, says he appreciated the rigor of the coursework, which comes “directly from the MBA catalog” and is taught by the same professors. “It is clear that Illinois made it a priority that graduates of the iMBA learn the same skills as all MBA graduates,” Lindaas tells P&Q. He also loved the community, despite never meeting other members of his cohort. “Even though we have never met face to face, through video conference, online chatting, and project work I really felt I got to know some incredible colleagues. I stay in touch with them, even four months after our final project.

“If I would change something, I wish that all faculty would embrace the possibilities of online experiences more fully,” Lindaas adds. “Some faculty seemed to struggle translating brick-and-mortar syllabi and pedagogy into our new program. A key strength of the online program is the ease of collaboration afforded by the Internet, and I felt a few classes missed the opportunity to redesign a campus class to take advantage of that. I am sure that will evolve over time.”

Kara Anderson, a first-generation college grad whose post-MBA plans are to “continue to learn, continue to push myself, and continue to evolve,” doesn’t have any complaints about the program — but does offer advice. “I would say that (students) should be cautious. They should do their homework,” Anderson says. “And they should know that the iMBA is not in any way a shortcut around earning an MBA. The program is just as rigorous and challenging as the traditional MBA program at UIUC, and as a prospective student and now an alum, that was really important to me.

“I was very specific about not wanting a degree from a private, online-only school. I did not want a degree from a program that did not test my abilities and stretch my knowledge. The iMBA was the perfect fit.”

NETWORKING OPPORTUNITIES: GOOD. CLASS SIZES: BAD, SAYS ONE GRAD

Brad Lindaas. Photo courtesy of Gies College of Business, University of Illinois

Christin Gomes, the marketing professional who may soon be starting her own business, points to another benefit of the iMBA program: networking.

“The program does a great job of hosting networking events in different cities globally, and students often organize meet-ups and study groups within their locale,” she says. “I have had the privilege of meeting and learning from so many smart, talented individuals in this program, and I’m glad to call so many of them friends. I might argue that this model has been more beneficial to my real- world experience working for a global organization maneuvering and collaborating with colleagues across regions and time zones.

“One of my biggest concerns about a distance program was not having the networking opportunities that traditional MBA students have in the classroom setting. The opportunities within the iMBA program have exceeded my expectations. I work and speak to my classmates daily through live sessions, social apps, and group projects. Professors are also readily available via class and designated virtual office hours.”

But with the iMBA’s success and growth have come drawbacks, Gomes adds. “If I could change anything about the program, it would be to make the cohorts slightly smaller,” she says. “As the program has grown, so have class sizes as well, and sometimes I miss the smaller feel that it had in the infancy of the program.”

A RANKING MISSTEP

Kara Anderson. Photo courtesy of Gies College of Business, University of Illinois

The iMBA has had one big hiccup: a misunderstanding last year that resulted in the program being dropped — at the school’s request — from the U.S. News ranking of online programs after placing 29th in the nation. According to Raj Echambadi, former senior associate dean of strategic innovation at Illinois and currently dean of the D’Amore-McKim School of Business at Northeastern University, Illinois submitted requested data to U.S. News in October 2016, when the iMBA was less than a year old and therefore not qualified to be ranked. Nevertheless, to the surprise of school officials, U.S. News ranked it.

“We were seven or eight months old when we submitted the data,” Echambadi told Poets&Quants, “and we had incomplete data by the U.S. News parameters for inclusion in the ranking. We had only one-fourth of the data.” The school requested removal, received it, and remains unranked in the latest U.S. News ranking a year later. Nor was Illinois among the 25 online MBA programs ranked in Poets&Quants‘ inaugural list in February.

That will probably change with time. What is unlikely to change — for the better, at any rate — is what participants consider the biggest trouble area for the program. Indeed, Christin Gomes’ concern about the size of iMBA cohorts is not a voice in the wilderness. It was echoed half a year ago in the comments section of the Poets&Quants story about the ranking snafu published in February 2017, by a reader who said they enrolled in the iMBA in the fall of 2017. “DB” criticized the “chaotic” pace of growth in the program, saying in the first weeks of the fall semester the administration “is overwhelmed and cannot respond to student requests.”

Christin Gomes. Photo courtesy of Gies College of Business, University of Illinois

“They do not provide students with a roster, so you don’t know who you are in the program with other than figuring it out through the social media sites, perhaps because they do not want you to know how large the program is,” DB wrote. “Also the ‘high engagement’ portion of the core classes through U of I (not Coursera) are way bigger than I had expected (and bigger than what admissions told me) — for example, there are 500 students in my current class. With less than a thousand in the program, I’m not sure how this can be. I think it’s because these classes include students who are not enrolled in the degree program — anyone can enroll. Hardly high engagement, it might as well be a Coursera MOOC.” He went on to critique the program’s use of the Blackboard online learning platform as “clunky.”

Responding to DB, another iMBA student, Roberto Martinez, agreed that the iMBA was expanding too quickly but added that “I have not seen any negative effects bleed into the quality of the program.” A member of the fall 2016 cohort, Martinez said Blackboard and lectures and discussions hosted on Zoom “always allowed for intellectual discussions and discourse,” adding that “I have yet to see a class with more than 150 students enrolled. Even then, the live sessions never have more than 70- 80 students at one time.”

Added another commenter, Karen Lubeck: “Like Roberto, I also share a very different perspective of the iMBA experience. When I started with the January 2017 cohort, certainly some trepidation existed around becoming a student again and leveraging the multiple technology tools that often come with a fully online program. Professionally, I work in higher education and very familiar with the challenges that new online programs face. However, with the iMBA, I was pleasantly surprised. Yes, they are scaling, what program is not as the demand for online learning increases? However, the iMBA’s unique asynchronous and synchronous learning is tremendous for addressing multiple learning styles, speeds, and concept consumption. The live sessions are as interactive as the student wishes to make it. For those areas where the content was challenging, often I would join in office hours just to listen. The high engagement aspects never felt like a MOOC, certainly not the assignments.”

Soon-to-graduate iMBA students. Photo courtesy of Gies College of Business, University of Illinois

FOR THIS iMBA GRAD, A BIG TRANSITION & PROMOTION

Zubair Ahmad wasn’t sure he would ever go back to school to get his MBA. He already had a successful engineering career in San Diego, California, and he didn’t like the idea of spending time away from his young family. But the idea of getting out of engineering and into product management kept gnawing at him. He’d been toying with the idea of getting an MBA for years, researching mostly part-time and online programs because sacrificing significant family time was a strong inhibitor to most MBA programs from reputable schools.

Zubair Ahmad. Photo courtesy of Gies College of Business, University of Illinois

There was another obstacle: cost. Tuition being what it is at most programs, Ahmad wasn’t sure he could ever afford even a part-time one. In that regard, Illinois’ iMBA was a godsend. But if Ahmad had any concerns about shortcomings in the quality of instruction in such a bargain program, he was quickly reassured.

“I loved the quality of the professors, curriculum, and classmates,” he tells Poets&Quants. “The professors are the same professors that teach on campus, and in fact are the cream of the crop of the on-campus instructors. I’d taken some online and extension classes from other institutions where the instructors are not actual university faculty and the quality of instruction is much lower; this was not the case in the iMBA. The curriculum covered a wide breadth of topics including economics, strategy, finance, operations, leadership, marketing, and innovation management. I got to work with a diverse group of classmates covering multiple industries (lawyers, dentists, accountants, engineers, marketers) from diverse locations across the country and even group members in Kazakhstan.

“I got the opportunity to transition from engineering to product management while in the program and I was able to apply the material and experiences from nearly every class. The iMBA was practically a business coach for me during this career shift.”

Ahmad says he will continue to use the knowledge he gained in the iMBA to make greater contributions and take more leadership and responsibility as a product manager. “I use my own development path as an example of the opportunities that can be realized with the iMBA,” he says. “I transitioned from engineering to product management, launched new products, and received a promotion. All of this was accomplished while still enrolled as a student in the program, without having to travel or give up entire weekends. At the same time I was able to have dinner with my family nearly every night of the week.

“Ultimately, the online program offers the lowest opportunity cost with a high net gain. And this type of success is not unique to me. Other classmates have also received promotions and transitioned into new jobs or industries while still finishing their degree.” Meanwhile, Ahmad’s young family has gotten even bigger: His second child was born during his second year in the iMBA.

WOULD THE iMBA HAVE A STRONG COMMUNITY? ‘A RESOUNDING YES’

Jeff Brown

Plans for the creation of the Illinois iMBA began a year or two before Jeff Brown became dean of the College of Business in August 2015. He served on a steering committee that worked with Raj Echambadi and others to ideate, brainstorm, critique, “push, prod, everything it took to get this thing done.” That involved a great deal of hard work by many people; now, with actual graduates receiving actual degrees, Brown can indulge a sense of satisfaction in what’s been accomplished. “It’s been a long road,” he says, “and it’s exciting to see us reach this stage.”

There were big unknowns, of course, in launching such a disruptively low-priced program: about student demand and the quality of applicants, about retaining students in the program, about the adaptability and retention of UIUC Gies College of Business faculty.

“This program has exceeded our expectation in every way, and that is not hyperbole, it really is true,” Brown says. “Everything about it has been higher than we would have predicted from the beginning.” The yield rate is over 95%, he points out. “We’ll make a few hundred offers, and we’ll get five people that will say no.”

Moreover, Brown says the college conservatively estimates that the iMBA’s retention rate, which is trickier to pinpoint because dropouts are harder to track — someone can stop “attending” classes but not announce their departure, for example, or return after being assumed to have dropped out — is about 92%. “Which is higher than an awful lot of face-to-face programs,” he says. “At the end of the day, it’s a testament to the quality of the program, the quality of the instruction, and the sense of pride that the students bring to it. One of the biggest unknowns out there when we went down this path is, were we going to be able to create a sense of community, the network, the cohort where people were able to form those bonds that would last for the rest of their lives?

“And the answer is pretty much a resounding yes. Talk to the students and you get a really exciting sense of belonging to this group.”

COURSE EXPANSION PLANNED 

Now that the program is more firmly established are any major changes in store? Brown says not expect any upheaval.

“From day we really have taken the idea of continuous improvement seriously,” he says, “so not a week goes by that we’re not adjusting a dial here and a dial there and learning and improving. I would say the next big thing for us will be to expand our course offerings. Right now, it’s kind of preprogrammed for the students — they have a little bit of choice about which course to take, but not a lot. You have six specializations, and obviously in the long run we want to offer more from which students can choose. I would expect to see in the next year or so that we would roll out at least one new specialization and maybe a couple.

“The other thing, and we haven’t made any decisions yet, but I will tell you that now that we’ve created this pretty powerful platform capable of delivering high-quality content online, we are trying to think about other ways that we can leverage that. Whether it’s life-long learning opportunities for our alumni or executive education at scale, or whether it’s providing Illinois content that can supplement or assist other schools in what they do, we’re really starting to look at this not just as a program but as a platform that we can continue to build on.”

And the cost? Will Illinois ratchet up tuition now that they’ve put themselves on the map with degree-seekers and have “literally thousands of hours of super-high-quality content recorded and catalogued”? No, Brown says — not yet. It’s still the mission of the school to keep the doors to graduate business education open to those who have otherwise been priced out.

“Obviously there is inflation, and at some point the cost isn’t going to stay at $22,000 forever,” he says. “But we don’t have any plans to make any dramatic changes to the price. We feel that we have created something here that is enormously valuable, and part of the attraction — the thing that got everybody’s attention out of the gate — was the low price.

“If we were a profit-maximizing entity, we’d price it a lot higher, because we think it’s really, really good. But part of what we’re trying to do here is, we are a land-grant institution, and we take that very seriously. And while we want this to be value-accretive to our organization, we’re not looking to maximize revenue stream from it — we’re trying to change education. We’re trying to show that there is another new model out there that can work and that can deliver affordable education at scale. We’re much more interested in the mission and the reputation-building that that generates for us, and in providing this education to a whole group of people that otherwise have not been able to do it.”

DON’T MISS TWO ALUMS GIVE ILLINOIS’ GIES $5 MILLION and IS ILLINOIS’ ‘iMBA’ THE FUTURE OF B-SCHOOL?

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