On a chilly evening last month Vanguard employees in Malvern, Pa., walked to a nearby building to take the full-time MBA class offered by Drexel's LeBow College of Business.
Men and woman in their 20s to their 40s come to class for three hours, twice a week, all on the company's dime. Apart from the Vanguard employees on site, some dial in from all around the country, including Arizona and North Carolina, and even internationally from Australia or London.
This is an industry MBA program custom designed by Drexel specifically for Vanguard employees. Since 2014, about 100 employees have graduated with Drexel MBAs. Each cohort has 30 students and lasts 27 months.
Students said time management remains a challenge. But the work location is convenient.
"Vanguard and Drexel have created a good and seamless transition for us with the satellite campus and flexible working schedules," said Emily Magee, education consulting services manager at Vanguard. "The peer group has positively impacted me the most. We've been able to discuss course-related and work-related topics, sometimes, simultaneously, allowing us to strengthen our performance at school and work."
With applications falling nationwide by 7 percent, according to the Graduate Management Admission Council, business schools have sought to innovate by offering more online and part-time MBAs, as well as specialized degrees such as a master's in business analytics, finance and management. They're also giving more waivers for the Graduate Management Admission Test (GMAT).
One strategy is to work closely with industries and tailor specialized programs for specific groups and companies.
"For schools that are more regional, they are searching for new and differentiated props, advantages of geographical location, or special ties to some industries," said Eliot Ingram, CEO of Philadelphia-based Clear Admit, which advises MBA applicants on admissions. "Each tries to find a niche."
St Joseph University's, with 70,000 alumni nationwide, also offers customized MBA models, said Christine Anderson, the school's associate director of graduate business programs. Groups ask for customized programs in pharmaceuticals, food, health care, and finance. And these programs are also available for all students.
Building specialized programs is a key feature of Drexel's business school, said Vibhas Madan, senior associate dean of academic programs, who teaches the school's Vanguard program. "The only way we are going to succeed is to build stronger ties with the industry."
So Drexel is talking with other companies to open more industry MBA programs. LeBow currently offers a certificate program for Wawa employees, and has worked with Campbell Soup and Independence Blue Cross.
The Vanguard Drexel MBA is 70 percent to 80 percent built by Drexel, with 20 percent to 30 percent influence from Vanguard, based on what the company wants its employees to learn.
The company tracks the effects, said Kathy Himsworth, head of talent development at Vanguard. "This program has been a lever in both their performance and potential in the long term." She added that students expect to be promoted and assume more responsibility after graduating.
Each year, the 30 employees selected from 120 applicants company-wide usually come from the manager's level. Applicants need not take the GMAT, but must have at least five years of outstanding work experience with Vanguard.
The Drexel MBA also helps with employee retention, Himsworth said. Graduates need to commit to Vanguard for two years after graduation.
"It's making me a more effective leader," said Jan Kargulewicz, a compliance manager at Vanguard. "I'm learning so much from my peers, as much from them as I am from the coursework. And I'm building a very effective and global network."
