UNICON Fall Conference 2005 The Case for Executive Education: Value, Impact & Relevance UNICON Benchmarking Survey #11 State of Executive Education Business Conducted 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 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 % reported an increase 10% of schools reported a decline in custom revenue in This is down significantly from 18% reporting decline in % of the schools reported that the custom sales cycles lengthened in 2005, which is up from 30% in % reported shorter custom sales cycles down from 28% reporting shorter cycles in 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 schools (40%) report that faculty compensation rates went up. This is down from 25 (58%) in In schools (82%) reported staff salary increases.