Graduate schools are seeing steady growth as both recent college graduates and people already in the workforce seek to boost their job prospects in a still-dragging economy. “We see an increase in graduate school applications and enrollments whenever the economy really turns south,” says Nathan Bell, director of research and policy analysis for the Council of Graduate Schools. In its report last month, it said the number of applications to U.S. graduate schools grew 8.3% from 2008 to 2009. The council has tracked grad school enrollments annually since 1986 and surveyed 699 schools in 2009. Total enrollments increased 4.7% in 2009, compared to 3% the previous year. Last year more students than ever took the GRE, the exam required for many graduate programs, and this year may set record highs again, says David Payne, vice president of Educational Testing Service , the non-profit that develops, administers, and scores the GRE. Concern about the job market — and wanting to put off paying back student loans — were major factors for University of California-Davis senior Daniel Yeshiwas, who says he changed his plans to work for a few years before attending graduate school. He plans to apply for fall 2011. “I don’t really know exactly what I want to do yet, but going to graduate school, it’s still moving me towards a career, and it’s something to further put off that question of what I’m gonna do for the rest of my life,” says Yeshiwas. Danielle McManus, a pre-professional and pre-graduate program advisor at the UC-Davis, says reasoning like Yeshiwas’ is not uncommon; she adds that many students apply to grad school as a backup plan, in case they can’t find a job. “Graduate school seems better than the specter of aimless unemployment. If these students do manage to find a job, however, they might prefer to start making money right away,” she says. In just the past two years, “students have become so hyper-focused on career opportunities that these programs can provide for them,” says Rob Franek, publisher of The Princeton Review test prep and research company. “They are thinking about the value of professional experience through a recession lens.” The Princeton Review’s new guidebooks, The Best 172 Law Schools , The Best 300 Business Schools , and The Best 168 Medical Schools , can help students evaluate whether a graduate program’s value is worth the investment, says Franek; a “career prospects” rating, is included in both the law and business school guides. That rating combines several employment statistics, such as how many students are employed upon graduation, average starting salaries, career services offered, and the number of students employed a year after graduation. Advice for those considering grad school: •Leave at least six weeks to study before any qualifying exams like the GRE or the LSAT, says The Princeton Review’s Rob Franek, and consider different schools’ admissions criteria, (includeded in the company’s guides). •Trying to decide which program to pursue? “Think about which classes you’ve done best in and what you are most interested in, particularly because graduate school is so targeted and so specific,” says UC-Davis adviser Danielle McManus. She also recommends that students ask professors for advice. •Get free practice GRE questions through the ETS website; many MBA programs now accept the GRE, not just the GMAT, says ETS’ David Payne. “With employers, the undergraduate degree is becoming pretty much a required certificate or credential for entry level positions. To advance, a masters degree is becoming more the preferred,” he adds. “Best Career Prospects” Law schools 1. University of Pennsylvania 2. Northwestern University 3. New York University 4. Vanderbilt University 5. Harvard University 6. University of Chicago 7. University of Virginia 8. University of Michigan-Ann Arbor 9. Boston College 10. Boston University Business Schools 1. Harvard University 2. Stanford University 3. Northwestern University 4. Georgetown University 5. University of Pennsylvania 6. University of Virginia 7. University of Michigan-Ann Arbor 8. Duke University 9. University of California-Berkeley 10. Carnegie Mellon University Source: The Princeton Review’s Best 172 Law Schools and Best 300 Business Schools 2011 Editions (Based on institutional data on graduates’ employment and average starting salaries, and student survey data on how much practical experience and career services support their law and b-schools offered.) More details on the rankings at The Princeton Review .

NEW YORK (AP) — The City University of New York and IBM will open a unique school that merges high school with two years of college, allowing students to earn an associate’s degree, Mayor Michael Bloomberg said Monday in announcing a series of ambitious educational initiatives. Those students will be “first in line for a job at IBM,” Bloomberg said in his announcement. The mayor also renewed a proposal to do away with automatic teacher tenure and instead ensure it’s linked to classroom performance. He also said the city would work with the state to end “seat time” — requiring students to spend a certain number of hours in desks learning every subject — and would try to change a state law that requires schools to buy printed textbooks rather than use digital content. “That may be good for the business textbook industry but it’s really a bad deal for our students in this day and age,” Bloomberg said. The mayor also said the city will use a $36 million federal grant to enlist highly skilled teachers to work in low-performing schools and mentor fellow instructors. ” New York City is … laying the foundation to ensure that every child who graduates high school is ready to start college or a career,” Bloomberg said. The mayor said the city wants to use a four-tier rating system to determine whether a teacher gets tenure, and said that beginning this year, only teachers rated “effective” or “highly effective” will be awarded lifetime job protection. Tenure would be awarded only if a teacher has made an impact on student achievement, he said. “Just as we are raising the bar for our students through higher standards, we must also raise the bar for our teaches and principals — and we are,” the mayor said. Bloomberg has proposed ending automatic teacher tenure in recent years. The state Legislature amended the law earlier this year to add student test scores and performance as criteria in evaluating teachers. Tenured teachers can be dismissed for incompetence or insubordination under the law but have due process rights. “If the mayor wants to change seniority he will need to talk to the Legislature,” said Michael Mulgrew, president of the United Federation of Teachers , the city teachers’ union. Mulgrew said that tenure decisions are arbitrary. “Most teachers would welcome an objective tenure-granting process based on agreed-upon standards,” he said. The partnership with IBM for a high school-college hybrid will build on work that the company is already doing in community colleges, said Stan Litow, vice president of corporate affairs for IBM. “We have every confidence that large numbers of those kids would be able to assume entry-level jobs at IBM and other IT companies,” Litow said. Earlier Monday, Newark, N.J., Mayor Cory Booker said about $40 million has been raised so far to match the $100 million donation to the city’s school system from Facebook ‘s founder Mark Zuckerberg . Booker appeared in Manhattan with New Jersey Gov. Chris Christie and Zuckerberg at NBC News’ “Education Nation” Summit. Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

IOWA CITY — The hour when Ariana Kramer will begin her college career is fast approaching — and her parents are in an office supply store, disagreeing about hanging files, of all things. “She’ll need them,” her mother says. “I don’t think so,” her dad counters. Ariana, meanwhile, walks dreamily through the store, offering no opinion on this particular decision. She is, in fact, confident that she will have what she needs when she starts her freshman year at the University of Iowa . FRESHMEN: Class of 2014 doesn’t know cursive, Clint Eastwood BY THANKSGIVING: Some first-year students want to call it quits NAVIGATING COLLEGE: Authors offer updated advice She has mom, the family organizer, with her, and dad, the calm encourager. And they have “the list,” which mom printed from one of those “what-you’ll-need-at-college” websites. New laptop. Check. Comforter with matching sheets. Check. Laundry detergent. Body wash. Antacid. Check. Check. Check. Mind you, Robin and Paul Kramer aren’t those crazy college parents — not like the mother who, as relayed by one dean of students at one California college, stayed in her daughter’s dorm room with her for four nights to help her adjust (until the daughter’s roommate complained). Nor have they ignored barricades intended to keep parents from trying to register for classes for their children, or crashed student-only orientation events, which officials at universities across the country say happens more and more. Still, even for average parents, the letting go is difficult — more so, they and many others say, than it was for parents of college-bound freshmen in decades past. Robin Kramer recalls how her own parents, who never attended college, dropped her off with a trunk full of belongings at Drake University , also in Iowa, in 1978. She set up her room and attended orientation without them there. “It’s just what you did then,” she says. It was much the same for Paul, whose father took him to the University of Wisconsin in 1977 and then went fishing. “It was a culture shock,” he says. “I wasn’t sure I was going to survive.” Perhaps that is part of what makes this “process of leaving,” as Robin calls it, more difficult. It is, all at once, overwhelming and exciting for everyone involved. But some say it’s often hardest for parents, who remember the days of college when there were fewer support systems in place for students. “I’m supposed to shed a few tears and then send her to the world, right?” the rational Robin tells her emotional self as she considers 18-year-old Ariana, the eldest of their two children. That remains to be seen. ‘Cut the cord!’ So how did we get here, anyway? It’s not that saying goodbye was easy for parents of past generations. But these days, moms and dads have gone from reading books that tell us how to raise The Happiest Baby on the Block to new handbooks such as The Happiest Kid on Campus: A Parent’s Guide to the Very Best College Experience (for You and Your Child) . YOU and your child? Linda Bips, a psychology professor who advises parents on letting go, used to carry scissors into workshops. “Cut the cord!” she would tell them. It evoked the chuckles she was looking for. “But I don’t do that anymore, because no one would listen anyway,” says Bips, a professor at Muhlenberg College in Allentown, Pa., and author of Parenting College Freshmen: Consulting For Adulthood . The process, she has learned, has to be gradual. Marshall Duke, a psychology professor at Emory University in Atlanta, has been giving those kinds of talks for three decades and also has noted more parents struggling. For one, they’re more connected than ever, by Facebook and text messages and, increasingly, online video chat. They’re also often paying huge sums of money on their children’s education. “So they think that gives them license to intervene as they would in other investments,” says Duke, who also encourages parents to take a step back, even when it goes against the fiber of their very being. He wants them, in effect, to let their children falter, to figure things out for themselves, to become adults. For Ariana Kramer, it means giving up the comfort of what she freely calls the “bubble” she grew up in, the quiet home and highly ranked schools in suburban Chicago where her main task in life was to study hard and get herself where she is today. In physical distance, it wasn’t so far from the working-class neighborhoods where her parents grew up. The Kramers both marvel at the freedom they had as kids, riding city buses as preteens and able to stay out with friends until the street lights came on. That was their signal that it was time to go home. They went to neighborhood schools. Their friends lived across the street. They walked home for lunch. “When we were growing up, there were no Amber Alerts,” says Paul, who is 50. After they finished college and married, the Kramers eventually moved to their current home. Paul worked his way into medical sales and Robin, who is 49, created an at-home job for herself by managing businesses of lawyers and other self-employed professionals. It became apparent how different their children’s lives would be when they found themselves arranging “play dates” and driving them from activity to activity. “You had to be so much more involved,” Robin says — partly because, like a lot of people, they had fewer children to focus on than the average family of generations past. Ariana worked in the summers, eventually becoming a counselor at a Wisconsin camp she attended for years. That helped her become more independent, she says. But even she’ll acknowledge that the thought of taking the train or bus into the city, as her parents did, is still daunting. Over this past summer, she took on household duties — doing laundry, loading the dishwasher, learning how to write a check — to help prepare her for that real world she’s anticipating. In August, she moved in to her dorm at Iowa on the first day possible, so she had extra time to get her bearings. “I like simple,” she says. “I need simple.” Times are a-changin’ By many estimations, the Kramers are a low-drama family. But even they are having their prickly moments when they arrive in Iowa City, and that’s to be expected in this time of heightened emotions, experts say. Ariana rolls her eyes, for instance, when her mom suggests that she put her class assignments in her BlackBerry calendar. “Mom, I’m not like you. You’re way, too, uh …” — Ariana pauses and chooses her words carefully when she remembers her words are being monitored by a reporter — “better organized than I am.” It’s all part of the subtle push and pull that has been happening all summer, her mother says. One minute it’s “I can do it myself!” The next, Ariana is asking, “Mom, can you help me with this?” Robin is having her own internal struggles, trying to step back but finding it a challenge. “Let’s be real. As a mom, sometimes it’s just easier to do it yourself,” she says, as she stands amid boxes and unpacked suitcases in the room Ariana will share with a roommate. It’s nothing fancy, your basic 1920s-era dorm room, upgraded with an air conditioner that is welcomed on a late summer day in muggy Iowa. “Thank God I have you guys. Otherwise, I wouldn’t be able to do this,” Ariana says, as her mother deals out tasks. Per Robin’s instructions, mother and daughter unpack her clothes first, as Paul sets up the clock radio, the portable telephone and the microwave. For him, the dorm room and this whole visit make him a bit wistful: “I wish it were me,” he says. That, too, is a normal parental response to this transition, says Bips, the Muhlenberg College psychologist who’s also a baby boomer and remembers “never trusting anyone over 30″ back in her own college days. “Life is more serious as you get older. There’s more loss. There’s more responsibility,” she says “So I would guess people in their 50s, who have to pay for college and worry about their jobs and the economy — yeah, wouldn’t it be nice to go back?” Some parents also feel nostalgic as the realization hits that their role — one of their main purposes in life — is changing, says Duke, the Emory psychologist: “If it’s a first child — my gosh, that’s a sobering signal about the progress of life.” Increasingly, colleges and universities have noted the support parents need in letting go, so much that they are starting to formalize the goodbye. At St. Olaf College in Minnesota, incoming freshmen are shown a video with their smiling, crying parents waving goodbye as one big group. First-year students at the University of Chicago, meanwhile, walk their parents to the university gate as bagpipes play in what some university staff call the “parting of the seas.” At Drexel University ‘s LeBow College of Business in Philadelphia, a goodbye reception includes an unofficial “crying room,” set up with tissues and a counselor. It’s kind of a gentle joke, but one that’s meant to send a message. “The idea was that we understand this is a major change for everybody,” says Ian Sladen, LeBow’s assistant dean of undergraduate programs. “It’s just as tough for parents — probably tougher, really.” But in the end, the message from universities and colleges is the same: Parents, please go home. At the University of Iowa, there is no formal goodbye ceremony. The university does, however, have an orientation and newsletter for parents and an advisory board, where any concerns are addressed. Meanwhile, Ariana also is taking a class called “The College Transition,” a relatively new course that helps freshmen ease into college life. “I clearly need a course like that to survive,” she says, her eyes widening for emphasis. Courses like these, often referred to as “University 101,” are becoming more common on college campuses. The aim is to turn out students who are independent and ready for the workplace — without their parents in tow. “It was almost a badge of honor 30 years ago when students couldn’t make it,” says Sladen at Drexel. “No one would be proud of that today.” And that should help put parents at ease, he says. ‘Make the most of it’ After nearly three days together in Iowa, the moment for Ariana to say goodbye to her parents and 16-year-old brother Chase finally arrives. Her parents get a little philosophical over sushi. “If they ask you ‘What’s the best time of your life?’ I think everybody will say college,” her dad says. “So make the most of it.” “Have fun,” her mom adds. “But don’t forget about the academics.” As her parents say goodbye, Ariana takes on the role of comforter. “I’ll call you,” she says as she hugs her mom, who begins to tear up. Ariana grabs dad and then her brother, who’s also starting to cry. She teases him: “If you break anything in my room, you’re in trouble.” They laugh. Chase, of anyone, has seemed the saddest about his sister leaving: “I think she’ll be OK as long as she copes with everything,” he had said the day before. “Oh, she will,” her mom assured him. “She’s a coper.” And it is true, Robin and Paul have faith in their daughter. “Basically, I think she’s very grounded and has a good head on her shoulders,” Robin says. She pauses. “But I’ll still be thinking, ‘Did she remember to do X, Y and Z?’” Ariana’s family departs, and the new freshman looks content, if not a little lost. She leaves her door open (that’s how you meet people, her resident adviser said). She looks around her room. “It’s weird,” she says. “What do I do now?” It won’t be long before she phones home. Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Joe Turant pointed to the rent-a-text signs in Fairleigh Dickinson University’s Florham Park , N.J., bookstore window last month and told his incoming freshman daughter, Caitlyn, “That’s what you’re doing.” With potential savings up to 50% off the price of a new textbook, the Colonia, N.J., father says renting textbooks will free up money for other things, such as the meal plan. E-BOOKS: iPad the next textbook? Maybe not “If we can get them through rental, great. Otherwise, she’s going to go online to try to find a lower price,” says Turant, who jokingly reminded his daughter that “Dad’s paying.” College students will be able to shop early and save hundreds of dollars on textbooks as more than 1,000 campus bookstores nationwide launch discounted rental programs this fall. The timing is right: The federal Higher Education Opportunity Act, which took effect July 1, says colleges must list required course materials for students during registration. “Students will be able to take advantage of more cost-saving options sooner, and they can save hundreds,” says Nicole Allen, textbook advocate for the Student Public Interest Research Groups. College textbook prices have risen at nearly four times the rate of inflation since 1994, with an average of $900 spent a year, Allen says. Successful pilot programs The rise of rentals means students can see substantial upfront cost savings without having to gamble on buying a used book and hoping the bookstore will buy it back, Allen says. Students can highlight and write in the rentals; normal wear and tear is expected. The country’s two largest college bookstore companies, Follett and Barnes & Noble, embraced the rental option after successful pilot programs last fall. Just 250 college campuses nationwide offered some textbook rental program during the 2009-10 school year, according to the National Association of College Stores. This fall, some 1,300 campuses will offer textbooks for rent. In late July, Follett had 720 of its 860 stores adopt the rental option, says spokesman Elio DiStaola. And half of Barnes & Noble’s 640 campuses have signed on, says Jade Roth, vice president for books at Barnes & Noble College Booksellers. Follett saved students $2 million off the cost of new textbooks in its seven pilot bookstores, including the University of Texas-Arlington, the University of North Florida in Jacksonville, and Rio Hondo Community College in Whittier, Calif., DiStaola says. An online alternative Typically, about 25% of the bookstores’ titles were available for rent. This fall, the stores expect to offer about 40% of titles for rent. “I’ve had students come up and thank us for this,” says Bill Coulter, bookstore director at the University of Texas-Arlington, where 6,000 students chose to rent last school year. “In my 44 years in this business, that never happened before.” “One student came up to the register and saved $300 … he was excited,” says Lee Cobb, textbook manager at the University of North Florida’s bookstore. Chegg.com, a California-based online rental company with 4.2 million titles available for rent — some up to 80% discounted — is expanding, too, by partnering with eight campus bookstores this fall. It partnered with California State University in Fresno in January and saw its number of Fresno users jump from 400 to 1,600, says Chegg.com spokeswoman Tina Couch. Meanwhile, Kyle Smith , 21, a Bridgewater, N.J., political science major at Drew University in Madison, N.J., says he’s excited to see how much money renting textbooks can save him. Drew’s bookstore will offer about 30% of its titles for rent this fall. Typically, Smith shops online for used textbooks. Being able to see the books he’ll need and whether he can rent will help in deciding if he can afford to take a course, Smith says. “Some poli sci courses call for nine or 10 books,” Smith says. “For me, it’s all about the bottom line. If it’s cheaper to rent, that’s what I’ll do.”

On Friday afternoons between work and rugby practice, Brittany Wolfe would rush to the campus library hoping copies of her advanced algebra textbook had not all been checked out by like-minded classmates. It was part of the math major’s routine last quarter at the University of California , Los Angeles: Stand in line at the reserve desk in the library’s closing hours with the goal of borrowing a copy for the weekend. The alternative was to buy a $120 book and sell it back for far less. If she could sell it back at all. “It’s like this terrible game of catch your books when you can,” said Wolfe, a new graduate who estimates she saved $800 a year using books on reserve and who now shares textbook tips as a counselor to incoming UCLA students. “It’s frustrating when you’re already stressed about school. Being stressed about textbooks doesn’t seem right.” Maybe, just maybe, relief is on the way. A new federal law requires publishers to provide textbook price information to professors and calls on colleges to identify course textbooks during registration, giving students more time to shop around. Experts call it a step in the right direction, but not a game-changer. ‘OLD SCHOOL’: Arizona college cuts book costs the old-fashioned way PROFESSORS: Some stopped from cashing in on textbooks At the same time, a robust online marketplace of used books and recent inroads by textbook rental programs give students more options than ever. The prospect of digital books and slow-but-steady growth in free online “open” content loom as developments that could upend the textbook landscape and alleviate the perennial problem of rising prices. “Change is coming, but it’s not going to happen immediately,” said David Lewis , dean of the Indiana University-Purdue University Indianapolis University Library and assistant vice president for digital scholarly communications at Indiana University. “If you’re in junior high school, you can be sure it’ll be better. If you’re in high school, there’s a shot. If you’re starting college as a freshman, you might see it as a senior. It’s on more and more people’s agenda.” According to a 2005 study by the U.S. Government Accountability Office, college textbook prices increased at twice the rate of inflation over the previous two decades, though not as dramatically as tuition. More recent data from the National Association of College Stores show textbooks costs climbed 14% from the 2006-2007 academic year to 2008-2009. A 2010 survey by the group found students spent an average of $667 per year on required course materials including textbooks, although other studies have put the figure at about $900. In 2008, Congress responded by including textbook-affordability provisions in the Higher Education Opportunity Act. Along with the price-disclosure clause meant to push professors toward cheaper options, it requires publishers to offer textbooks separately from extra items like workbooks and CDs. The practice of “bundling” products leads to markups of 10 to 50% and makes books harder to sell, according to the Student Public Interest Research Groups, which pressed for the reforms. “We have more lower cost options than ever before, and professors are going to have more information than ever before,” said Nicole Allen, textbook advocate for the student PIRGs. Like the music and media businesses, the textbook industry has been revolutionized by the Internet. Although used books have long been an option for students, the Web opened up a world of bargain-hunting beyond the campus bookstore. These days, sites such as BIGWORDS and BestBookBuys let students search several online stores at once. The 13th edition of the seminal textbook “Marketing Management,” which lists for $190 new, can be had for as little as $19.99 used. More recently, textbook rental sites such as Chegg, BookRenter and CollegeBookRenter have arrived, offering rentals at roughly half the cost of buying. Their business model — Netflix goes to college — has prompted college bookstores and publishers to play catch up and offer rentals themselves. Textbook publisher Cengage Learning began renting directly to students last spring and has expanded its online rental inventory to 3,000 titles. Campus bookstore operator Follett will introduce rentals at more than 800 bookstores this fall, and Barnes & Noble will do the same on more than 300 campuses. Earlier this summer, BookRenter, which has contracts with Amazon.com and other online booksellers to fill orders, announced that more than 75 campus bookstores would use its platform to rent textbooks. Chegg keeps its own inventory of nearly 5 million books at a warehouse outside Louisville The start-up aspires to forge direct relationships with students, shipping products in their own packaging, offering a liberal return policy and promising to plant a tree for every order, said CEO Dan Rosensweig , a former Yahoo executive. Behind the scenes, publishers get a share of the rental revenue — something they can’t say about used book sales. Open access textbooks pose a bolder challenge to the status quo. The start-up Flat World Knowledge contracts with authors to write new textbooks and publishes them for free under an open content license, allowing professors to edit the raw material and add their own contributions while giving students access to a Web-based HTML book. Last fall, about 480 professors adopted one of the company’s initial 10 business and economics titles, said co-founder Eric Frank. About 1,200 professors are expected to use 22 titles to teach 95,000 students this fall. The company is betting students will pay a reasonable price for greater convenience. Flat World’s revenue comes from selling everything from $30 black-and-white copies of its books to $3 audio chapters, as well as study aids like digital flash cards. About 55% of students are buying something at this point, Frank said. So far, the main drawback to open access is the dearth of titles, said Albert Greco, a professor at Fordham University ‘s Graduate School of Business Administration and an authority on the textbook publishing industry. Greco and others forecast a major shift in the next five years to digital textbooks, which already cost about half as much as new print editions on CourseMart.com, a kind of textbook iTunes launched in 2007 by the major textbook publishers. That would doom the used book and print rental marketplace, Greco said. As for immediate relief from the new price disclosure law, Greco said it won’t do any good for students unlucky enough to have four courses with brand-new books. “Whether it will help students comes down to, ‘It depends,’” he said. Sophie Stanish, a junior at Fordham University in New York, fumes about paying $200 for a new math textbook she couldn’t sell back and a $10 short-story collection that fetched 75 cents at trade-in. She likes the concept of Fordham’s “E-RES” program — short for “electronic reserve” — in which professors scan sections of textbooks to the extent allowed by copyright law and then put the material online for free. But, she said, “I can’t read off a screen and retain the knowledge as well. It’s a personal thing. I like to highlight.” Other colleges seeking to provide relief have adopted textbook loan programs. At City College of San Francisco, Kathy Gill said she misses class to line up early for a popular loan program for students on financial aid. The limit is two loaned books, so the business major still shops online for used and rental options each semester. “You do get a little bit of a break,” Gill said. “Every little thing helps.” Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

A few years ago, any discussion of the master’s in business administration would begin with discussions of scandal and mismanagement. Look at instances of accounting fraud at Enron and WorldCom : MBAs behaving badly. A president of the United States with mixed approval ratings and plenty of opponents in his own party: an MBA whose leadership skills seemed lacking. Business school discourse today has a new set of topical lessons, emphasizing the roles played by MBAs in precipitating the global recession and creating financial products that benefited corporations but hurt consumers. “When we bring students into business school, we narrow their vision,” says Stephen Spinelli, president of Philadelphia University and co-founder of the Jiffy Lube auto service company. “We teach them to focus with increasing blinders until they have pinpoint recognition, but that limits what they can see on the periphery.” A much-maligned concept like mortgage-backed securities, he says, “in its construct … could be taken as being sound — a hard asset that has clear value.” With broader perspective, they’re tougher to define and much riskier than they might seem. “You become dislocated from the person and their ability to pay that loan, the value of the property, what’s happening in the neighborhood around that property and what’s happening with the job market in that city and region.” The financial crisis has administrators and faculty at business schools around the country rethinking that narrowing approach. Courses and curriculums are being revised to avoid building silos in business schools and students’ minds. Words — and ideas — like globalization, innovation and sustainability are taking hold. Though he first started thinking about broadening students’ perspectives a decade ago while serving as vice provost at Babson College , Spinelli says that his ideas solidified as he watched investment banks crumble and ordinary people face foreclosure. “If we don’t teach people to sort of look around and have greater peripheral vision, then we’ve just set ourselves up for the next crisis,” he says. In the fall of 2011, Philadelphia will roll out a revamped MBA program that will emphasize collaboration with the university’s engineering and design schools. Business students will work on hands-on projects with students in other fields, all with the aim of preparing them to collaborate once on the job. “We used to think it was highly collaborative when marketing and finance were working together,” Spinelli says. “Now we see that partnerships need to be much broader; three-dimensional collaboration needs to be taught.” Yash Gupta, dean of the Johns Hopkins Carey Business School, has a similar perspective. “What has happened in the last 18 months has shown that you cannot manage a complex system by dividing it into smaller pieces and optimizing those pieces without considering the whole,” he says. “You cannot build an organization by simply maximizing shareholders’ value. Customers, employees, the general public are important.” BEFORE COLLEGE: In-school banks dispense financial sense In building a curriculum at Carey, which spun off from Hopkins’ School of Professional Studies in Business and Education in 2007, Gupta looked to industry for recommendations. Among the abilities and skills companies said they wanted from their employees: adapting to change and being flexible; critical thinking; a broad worldview; connecting invention with innovation; and linking content to context. All of those things, Gupta says, will be interspersed throughout the global MBA program that Carey is beginning this fall. Rather than simply having one class on ethics or decision making as some other schools do, the curriculum will include those skills throughout. “We’ll teach students about decision making — behavioral, rational, how the brain functions — in the first year, but we’ll also give them chances to make decisions,” he says. “We’ll bring in CEOs or prominent academics to talk about ethics and ethical concepts, how managers sort things out and decide which decision is the right decision.” Carey will treat globalization similarly. Rather than taking a few classes on international business or an optional specialization, all students will work on projects in the developing world and spend time learning to work with people from different backgrounds. The school is taking the right approach, says John J. Fernandes, president and CEO of the AACSB: Association to Advance Collegiate Schools of Business, the world’s largest business school accreditor. “You can’t look at things as compartmentalized,” he says; everything needs to be interconnected, and everything must be contextualized to everything else. “After Enron and WorldCom, everyone said, ‘Let’s teach ethics,’ but they did it in the corner as this separate discussion,” Fernandes says. “But it is best taught across every business discipline because they all have different ethics challenges.… It’s best taught across everything we do.” At Harvard Business School , where administrators insist that ethics has always been incorporated throughout the MBA curriculum, it became clear that there was a need for students to get a solid dose of ethics. In 2004, the school began requiring all students to take “Leadership and Corporate Accountability” during the second term of their first year. David A. Garvin, a professor of business administration, describes the course as “a way to give students a sense of the responsibilities that they will have to all these different stakeholder groups.” With shareholders, they’ll have to worry about fiduciary responsibilities. With customers, “information asymmetries” (as Garvin explains it, “Under what circumstances do you need to disclose?”). With employees, students will be educated about treating them fairly. With the public at large, MBAs’ responsibilities may be even greater — to deal with issues like child labor and freedom of speech. Though these were all pre-financial crisis concerns, the high-profile ethical lapses that helped precipitate the downturn have only intensified the sense that MBA programs need to do more to create ethical graduates. Students in Harvard Business School’s class of 2009 drafted and spread “The MBA Oath,” a brief code of ethics that has been signed by more than 2,500 MBAs and business students. In conducting research for Rethinking the MBA: Business Education at a Crossroads , a book published last month, Garvin says he heard from executives and deans who, after well-publicized accounts of unfair business practices and gigantic post-bailout bonuses, hoped to see ethics education ramped up. “There was a sense of a greater need in helping students understand the roles, responsibilities and purpose of business and business leaders.” ON THE WEB: The B-school glass ceiling INSIDE HIGHER ED ARCHIVE: De-departmentalizing biz school Executives and deans also told Garvin that they saw a need for students to better understand “the limits of models and markets — risk, restraint and regulation,” he says. Before the economic crisis, they came up with an even lengthier list of near-universal needs: 1. Having a global perspective. 2. Developing leadership skills. 3. Improving integration skills. 4. Understanding organizational realities and implementing them more effectively. 5. The ability to act creatively and innovatively. 6. Thinking critically and communicating clearly. None of the needs are too surprising, but they are tough things to teach that business schools must continue working on. Creativity and innovation are at the core of a new report from the AACSB, in which a task force of deans, university presidents and business leaders calls on business schools to play a larger role in innovation. Although business schools are “built to go in a lot of different directions, and we as an accrediting body don’t try to push them one way or the other,” says Fernandes, the association’s president, innovation is something administrators and faculty should be thinking about. “If the light’s not already turned on, it turns that light on for them, that they should apply an innovative intention to their strategies.” Business schools don’t have to be hotbeds of invention, just places where students and faculty develop better processes and products. Robert S. Sullivan, dean of the Rady School of Management at the University of California at San Diego, points to Apple ‘s creation of devices like the iPad as the sort of thing business schools ought to be training students to do. “The technology in the iPad is not a new invention,” he says, “but Apple looked around the corner in terms of figuring out what people want without necessarily asking them.” And the products that business schools must train students to develop aren’t just glitzy gadgets or risky financial instruments; they’re things that will benefit humanity — business schools hope. “If the world has shrunk, then business schools must solve the world’s problems,” says Gupta, of the Carey School. People who face challenges of “poverty, education, health: these are going to be my customers and employees tomorrow, so business schools must help them, too.”