But with these B-schools, each with its own extraordinarily healthy endowment, cutting costs isn't really the point. Corporate executive-education honchos see such alliances as the way of the future. We can offer classes in four locations and maintain a certain standard of quality. Other B-schools are right behind. The two also plan to share custom executive-education work.
More announcements are on the way.
The schools will connect classes via technology worldwide and will co-produce several executive programs. All this puts the pressure on other B-schools to get in on the action. They are guarded and want to protect their brand names. Inked into the agreements is a right of first refusal, so if either plans a new global program, each would first have to consult with the other. I personally can't see it happening anytime soon.