Issue link: http://www.e-digitaleditions.com/i/63913
—and not just universities in general, but business schools in particular." —Ron Frank The school is currently located on a former British college campus in complete- ly remodeled buildings, some of which date back to the 1930s. While Bellace calls this a "lovely, traditional campus," the school soon will outgrow the site, and a new city campus is slated to open in 2005. "The location is a historic section of Singapore, quite close to the financial dis- trict, on the only sizable plot of land still remaining in the heart of the city," she says. The cost for the new campus will be in the region of S$500,000 (about $285,000 in U.S. dollars). The land will be owned by the government and leased to SMU on a long-term basis. The creation of the new school seems like perfect timing to Bellace. "Worldwide, the whole notion of business education is changing daily with the advent of the knowledge-based econ- omy, e-commerce, and a global marketplace," she says. "In Asia, some countries are now advanced economies and thus in need of graduates from top-ranked schools. SMU is in an opportune position to embrace the mindset of the new millen- nium and develop a whole new generation of leaders." While some might see the new Indian School of Business as competition for SMU, new president Frank is not among them. "I think it's almost the opposite. I think that we comple- ment each other," he says. "The base for business education of the quality that you find at leading schools in the United States and other parts of the world—especially in the Pacific Rim—is so thin that it would help all of us for each of us to succeed. I would say that it's crucial at this stage of develop- ment to create a community of leading global universities— and not just universities in general, but business schools in particular. They're all going to face the problem of how to import and produce more intellectual capital in their own countries. At least for Singapore to be successful—not just with its educational institutions but to achieve growth in general—it's got to compete not only for its own nationals, but for a world market of knowledge." He compares the Asian business school market to the smaller one in Boston. "Does MIT really hurt Harvard? Does Harvard hurt MIT? Or do they both make a very strong magnet for top-quality faculty who want a broad community of scholars that's stable, that sits like a rock? The answer is, yes, they do." That's why he welcomes the ISB. He says, "I'm delighted to see them. The more kids on the block, the better." sponsored schools that are usually among the top-ranked busi- ness schools in Asia. IIM applicants are selected, in part, based on their scores on the Common Admissions Test, which people who have taken both consider more difficult than the GMAT. "What I'm going to say next is astonishing," says Ramamoorti of Andersen. "In the early 1990s, some 30,000 stu- dents took the CAT exam every year. Approximately three per- cent got into the IIMs, which means that more than 29,000 stu- dents were rejected. Clearly those who got in were not only very bright, but they were the crème de la crème. But I can't imagine that the remaining 29,000 were all that different. I would think that at least ten percent of that 30,000, or about 3,000 students, were really good enough to make it at the institute. Clearly, there is a capacity problem here for grooming managerial talent and globally savvy executives." The ISB wants to tap into this pool of talent, but everyone is aware that the IIMs will provide fierce competition. The IIMs are not only well-established, but they, too, have international affiliations, with schools like Harvard and MIT. Nevertheless, the ISB's first class is an impressive one: It includes Indian government officials who have taken one-year educational leaves, a handful of full-time employees from com- panies such as Andersen and PricewaterhouseCoopers, and the runner-up in the Miss India competition, who is also a sports gold medallist. She's in good company, since about 25 percent of the class is female. Says Balachandran, "It's a great class. The average GMAT score was 687. For every applicant we admitted, we had at least ten good applicants rejected." His one disappointment is that this first class has fallen short of its goal of admitting ten percent to 12 percent non-Indian stu- dents; the number was closer to six percent. "We want clearly diverse, different cultures with truly international colors," he says. He expects to reach that goal in the future as he and his col- leagues begin recruiting for future classes. Ghoshal will use his contacts to recruit in Europe; Balachandran will continue to focus on recruiting in America, and he also expects to start pro- moting the school more heavily in Australia and New Zealand. Naturally, ISB did recruit international students for the June 2001 start date, but it was handicapped by not having a track record. "Unfortunately, it's our first year, so we don't have any- thing to show," says Balachandran. "People are skeptical. Next year, I can say, 'These are our 130 graduates, this is where we placed them, these are the number of offers they got and their average salary.' Then I am playing in a different ballgame." That game will be conducted on a playing field that grows z more international with every passing year. The ISB is dedicated to generating a team that can play in countries around the world and yet always feel right at home. s BizEd NOVEMBER/DECEMBER 2001 39