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APRIL 30, 1998

B-SCHOOL Q&A: FINANCIAL AID

Meet Tennessee-Knoxville's Financial Aid Director

A Conversation with Donna Potts, Director of MBA Admissions & Financial Aid at the University of Tennessee's College of Business Administration


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On Jan. 22, 1998, we spoke with Donna Potts, director of MBA admissions and financial aid at the University of Tennessee's College of Business Administration (a runner-up in Business Week's 1996 rankings). Donna has been in admissions at the University of Tennessee for the past 15 years -- serving as the MBA program's admissions director for the past 13. Over the course of her career she has served on the Graduate Management Admission Council's (GMAC) Professional Development Committee, been the school's primary representative for GMAC, participated in several college committees such as the Fellowship Awards Committee, and been a representative for the Southeastern MBA (SEMBA) Consortium. Donna earned both a BA in Education and a master's in Higher Education from the University of Tennessee. Ms. Potts was interviewed by Business Week Online reporter Nadav Enbar. Here's the transcript of that discussion:


Donna, first off, the Tennessee MBA program takes a fairly unique curricular slant that has first-year students taking only two courses throughout the entire year. Can you explain how that works and what the rationale behind it is?

Sure. Several years ago, around 1990, a group of faculty and our dean were listening to business and industry cries that we were not creating leaders and managers. So the dean and faculty came together and interviewed several business executives to find out what they needed. As a result, the school decided to redesign the curriculum in 1991. We tore down the walls between functional areas so that now we're developing managers who can think across disciplines with strategic and short-term planning.

We decided that it was very important to have students equipped with teamwork, interpersonal, communication, and leadership skills. As a result we have based our program on the team approach. Students come in, and we assign them to teams of five. We change the teams during the second semester, and at the end of the first year, they have a three-week game simulation.

Students are given one grade for the fall and spring term. The program is delivered via a mega-case study in which the students learn about business by managing a business. When they receive their calendar at the beginning of the semester, instead of seeing a marketing class three times a week, they see X number of marketing sessions based upon what is going on within the life cycle of their company.

What's interesting about the classroom environment is that faculty serve as facilitators, and students are the ones who drive the dialogue. The second year of the program is more elective-oriented.

Having said that, what type of student are you specifically looking for? What type of person do you feel can really excel in the Tennessee program?

We believe that the most successful candidates are those who have been out in the workforce, have seen what the real world is all about, and can bring those experiences into the program. They need to be focused and have a baseline towards strengths in communication and leadership. We're looking for people who can handle ambiguity because we will redefine their concept of time management. So they need to be able to think on their feet and juggle many different things simultaneously. They also need to be able to handle stress because they'll be putting in 50-60 hours a week towards earning their MBA -- that incorporates class time, team time, workshops, seminars, speakers, etc.

You've worked for the University of Tennessee for 15 years, serving as the MBA admissions director for the past 13. Has the type of individual applying to the school changed over that time?

When I came here initially, the applicants that I had the opportunity to evaluate for admission were coming straight out of their undergrad. Now I am seeing applicants who are far more seasoned professionals seeking to change careers or move up to the next rung on the ladder. I think that has to do in part with the type of program that we have to offer and the national visibility it has gained over the years.

Do you target applicants according to the industries that they are coming from. For instance, I understand that the school has a nationally recognized Logistics & Transportation Dept.

I wouldn't say that we target a specific industry because there are so many different types of industries and ways that we could go with that. We don't want to limit ourselves at all. What's interesting is that many of Logistics & Transportation students are not from that industry: They are folks who have done their research and sought out the program as a result.

Tennessee only offers a full-time program at this time, although I understand that the school is in the midst of developing a professional MBA program for part-time aspirants. What's the status of that?

It's on the drawing board right now. It's currently under development as we speak and will be offered for the first time in the fall of 1998. The College of Business will house it under a different umbrella, however. It is more closely aligned with the executive MBA and Physicians MBA program [which just started in January].

Why did the school decide to start the part-time program?

In 1991, when we made all of the major program changes, we did have a part-time program. But with the new structure, we didn't have the resources to have two different programs going on simultaneously. The full-time program is a superior one, and we didn't want to have an inferior part-time program complementing it. Today, the local market supports having a part-time offering. And we plan to schedule classes for it on Saturdays over a 16-month period of time because it allows professors from a wider region to participate.

What is Tennessee's official application total for its Class of '99? Is it up or down from last year?

I believe we received 565 applications for the class that entered in 1997. Since 1985, we had garnered a consistent increase of 10%-20% in applications. Even when the industry as a whole experienced some lags in their application pool, we always enjoyed a steady increase. But in 1996 we got 601 applications, our first decrease since 1985.

Any explanation for the sudden drop?

I haven't put my finger on it yet.

And the yield?

We accepted 27% of the folks that applied to our program, and 55% of those accepted our offer of admission. We had an entering class of 85 students who formally accepted our offer.

Has the yield also changed since last year?

Acceptance [selectivity] has ranged from 27%-34%. And in terms of the group who accepted our offer, that has pretty much remained fairly steady; we've been as low as 46% in 1993, and had an all-time high in 1988 with 72%. In 1988, though, we had a very different program and were not competing with the schools that we are now. Generally speaking, however, the yield ratio has been holding steady at about 50%-55%

With just 181 students, a bonus at Tennessee is the MBA program's small, intimate size -- that's dwarfed by the more than 2,900 undergrads at the school. Are most of the people enrolled in the program in-staters, or is there a geographic mélange of students? Can you break it down?

Only 30% of the Class of '99 is from the state of Tennessee. If we look at the whole Southeast region, which includes Tennessee, Virginia, Kentucky, the Carolinas... then the total amount of regional students goes up to 67%.

Has there been a decrease in the number of in-state or regional students enrolled in the program as it becomes more prominent nationally?

Yes, there has, although it fluctuates. In 1996, 34% of the class was from Tennessee, and only 52% was from the Southeast region. In 1995, 31% was from Tennessee, and again 52% was from the Southeast region. In 1994, we had 71% from Southeast area and 41% from Tennessee.

Female student representation has been strong at Tennessee. In 1996, women made up half of the MBA population, the highest of our top 50 schools. Is the school specifically targeting women, or do you feel there is an historical precedent in place that naturally attracts them to the program?

Well, we've haven't always enjoyed that level of female representation. In fact, we hit an all-time low of 16% a number of years ago, and we really try hard to identify and attract professional women who are interested in business education. We do a lot of word of mouth referrals. The women who have gone through the program have been very proactive about identifying their colleagues who would be a good fit. We encourage all qualified candidates to come to campus and sit in on a class.

We participate in the GMAT search service for identifying women who are interested in graduate management education. Although we don't have a large female faculty contingent, those that we do have make a lasting impression on the students, and I think that's part of it.

I noticed that for the Class of '99, female class makeup has dropped to 30%. How did that happen?

That's not a conscious effort on our part; I would have liked to see that improve rather than decline.

What are this year's application deadlines?

Mar. 1 for both international and domestic candidates. We use the same deadline date for scholarship as well.

Due to the small size of the program, do class spots tend to get filled fairly early in the admissions cycle?

We can range anywhere from 80-95 students per class. We usually begin filling up in April, and have a waiting list starting in May.

What are the different criteria assessed within the Tennessee application packet?

When the committee makes their decision, they base it on a number of factors because they're equally balanced in many ways. Professional work experience is very important because that is the premise which this program is based on. We also look at their overall GPA assessment and postgraduate coursework they may have taken. Of course, we look at the GMAT. But generally speaking, leadership activities are extremely important.

How a student communicates on paper his or her successes, be they academic or extracurricular, is extremely important. We have five required essays and one optional that give applicants that opportunity. The student is the artist, and the essays are the canvas with which they can paint a picture, and we leave the essays open-ended with no word limits. We encourage a student to put their best marketing cap on. To further delve into the applicants' character we have two recommendations. Lastly, while we don't require interviews, we recommend them very strongly.

What kind of process do you use when evaluating candidates? Is there an order in which you review a candidate's file?

We have a rolling admissions process, and as files become complete we look at them immediately.

How do you evaluate the GMAT?

I look at it holistically and also break it down into its components. I try not to get too caught up in the numbers because they don't tell the whole story. I've had some very successful candidates whose GMATs were not near our average but who ended up being great students. Likewise we've had people with high GMAT scores who have done nothing in our program. I try to look at other issues, like their academic track record, interpersonal skills, and teamwork skills -- those types of issues are almost more important because there are qualitative aspects of the program which stress those type of skills.

How do you assess the GMAT if the applicant has taken the test several times?

I look at only their best score. They may have a bad test day, and I don't want them to be penalized because they may have been sick, or maybe took it while they were still an undergrad and didn't care about it at the time.

Interviews at Tennessee are not required. However, 50% of the school's 600 applicants chose to interview in 1996. How about in 1997?

It ranged anywhere from 65%-70%.

What do you want to come away with after an interview -- something behavioral or informational?

When I interview someone, I'm very interested in how well they know themselves. What do they want to do? Why do they want to pursue a specific career? How well they communicate this back to me is important. I'm trying to look for the best type of person who can add to this program. When they're walking out the door, one of the last questions I ask myself is: If I were an employer, would I place this person in my company?

Do you have any pointers for how applicants can best prepare for the interview?

I think they really need to go through a self-assessment and really think about where they're going to go -- they need to answer for themselves the why and how questions. And then they need to think about why they want to earn a degree from the University of Tennessee. What are the unique aspects and characteristics of our program that will fulfill their needs? And obviously, they should think about what value they can add to our program. Since it's such an interactive environment, they need to assess those things so that I can relate that to the committee.

Do you conduct the interviews yourself?

I am one of several people who conduct the interviews, but I do the primary interviews. Our associate dean and three or four faculty also interview on occasion.

What do you ask, generally?

I'll ask them to address their work history and what kind of experiences they've had in the workplace. I'd like to hear them maybe describe a success they've had on the job or something that was less successful that they learned from. I ask for examples about what they like most about working in a team environment, what they feel the most challenging aspects are, and how they handle them. I also ask them about their accomplishments and why they view them as accomplishments.

You mentioned that there are five essay questions with no word limits in the Tennessee application packet. What themes should applicants incorporate into their essays to indicate whether they are a good fit with the Tennessee program's culture?

Interestingly, some of our interview questions are also on the application, and I'm always interested in the differences in the applicants' answers.

One asks what they view as their three biggest accomplishments. Another asks what effect utilizing their leadership had on them. Another question says that the University of Tennessee emphasizes applied learning and problem solving, and we want them to describe a situation where they applied a learned concept to a real life problem.

I'd imagine that without word limits in place, you've had your fair share of long-winded paeans to the MBA degree.

I'm actually surprised that more people don't do that. Oftentimes the applicants will only write a small paragraph because they're afraid they'll be taking up too much of our time, and they'll give us a skimpy response. When that happens, I'll ask them to rewrite the essays because they're cheating themselves. There have been a few occasions where we've had books to read, though. But another reason we don't see more of that is because there seems to be an industry standard. I've always left the essays open-ended because I'm interested to see how applicants handle that.

Who do you want the two recommendations to go to?

If they have not been out of school for a long time but are working, I'd like to see them split them between their supervisor and a professor that they are still close with. If they've been out in the workforce for a while, then it would be appropriate to have both of the recommendations completed by corporate representatives. We don't want to see character references because we assume that all of our applicants have good character. I think the reference form itself does a good job at identifying the things we're interested in knowing. So again, the applicant needs to think about who can best attest for their decision-making abilities, academic skills, leadership skills, and communication skills.

A problem plaguing Tennessee students is their lack of work experience, with many having less than one year's worth -- which can depress pay packages at graduation. Has the school been more selective with respect to full-time work experience?

Probably within the past 3-4 years, we've seen both an increase in the average number of years of work experience as well as a smaller percent of folks who have less than a year's worth of work experience, which ranges between 8%-15%. The average number of years of work experience has been anywhere from 4 to 4-1/2 years. In addition, we've seen a steady increase in average salary since 1985 (Editor's note:The average starting salary for Tennessee's '97 grads was $59,092; in 1996, it was $51,092)

How many different hands does an application go through before a final decision is made?

Once the file is actually entered into the database system, then the file will come to me when it's complete. I'll do a first read, and if I believe the file represents itself well, then I'll take it on to the admissions committee, and they will make a decision. If I'm unsure about an application, then I'll request an interview, and then afterwards it will go to the committee.

Everything is decided by the committee, which is comprised of four people: myself, the associate dean, and two faculty. When I read a file, I write a recommendation form, but sometimes the committee votes with me and sometimes it doesn't.

What is Tennessee's deferral policy?

Historically we have not deferred from one year to the next. We ask that people indicate to us if they cannot make it. If they want to enroll within two years, then they just need to update their application, they don't need to reapply.

And the waitlist policy?

Typically, if it's somebody that we're on the fence about, then we will project a certain date where they can come in and talk with us about their candidacy; we will give them an answer usually within a month afterwards. The other waitlist is if we have a full class, someone appears to be admissible, and we're waiting for a space to free up for them. In that situation, we'll notify the applicant and ask them if they'd like to remain on the waitlist.

What can waitlisted applicants do to improve their chances of acceptance?

If they've had an interview, then there's probably nothing else they can do. If new information has come in, such as a job promotion, for example, then we ask them to keep us updated.

Do you provide some type of feedback or counseling for the unfortunate who are denied admission?

Yes, I do. If someone calls in or comes in, I do a couple of things: I help them reevaluate other options that they may want to pursue, I help them evaluate the strengths and weaknesses of their application, and offer advice as to what they might do in the future. I want all of our applicants and students to walk away saying that Tennessee is a quality program.

Some see the Tennessee MBA program as a bargain. What's this year's tuition?

Let's see, in-state students are paying $3,142 in university tuition for the year, on top of an $850 MBA program fee; and out-of-state students are paying $7,824 for the academic year on top of the $850 fee.

The low annual cost of living in the Knoxville area must also make life easier. What would you estimate that to be?

It depends on lifestyle issues, but we usually say that $10,000-$12,000 will cover it for the year.

The comparatively low tuition, in concert with the low cost of living in the Knoxville area, makes the program quite a steal. But what of financial aid and scholarship? What's out there for students to take advantage of? I understand that the school offers minority scholarships...

The University of Tennessee may be considered for the THEC Scholarship program [the Tennessee Higher Education Commission]. They have a special scholarship program for in-state minority students for several different programs across the university (Editor's note: It encompasses all of Tennessee's graduate programs except the PhD in agricultural economics and master's in public administration programs). In that particular program, the first year is a fellowship that pays for tuition and a stipend that ranges from $6,000-$10,000. During the second year, the program goes to assistantships, with the same funding rate, but students work 12 hours per week in a graduate assistantship assignment. I've been able to secure about eight total for first and second years -- only 25 are awarded to the entire university.

The MBA Program office also has a graduate assistantship available that is awarded based on merit. There are typically 20 available, and that's independent of what a department might be able to offer. The funding rate is a tuition waiver and a stipend. We also have fellowships ranging from $1,000-$5,000 that are awarded to 20 first- and second-year students.

Among the companies that recruit at Tennessee are IBM, Frito-Lay, Federal Express, and Procter & Gamble -- all multinational companies. However, as I understand it, more grads are being placed regionally, rather than nationally. Is the school trying to balance this out?

What's interesting in terms of our placement is that even though our students are interviewing and being hired by national and multinational firms, oftentimes, they're being placed regionally. That's happening because either the Southeast is one the greatest areas of growth in the U.S. or because many grads are often choosing to remain in the area. Students actually want to remain in the Southeast region. So I'm not so concerned with the regional placement. There are far fewer regional companies than nationally based firms coming here to interview our students. It's just where the placement opportunities are for those national organizations.

As a representative for SEMBA [Southeastern MBA] Consortium, can you tell me how such groups affect placement?

It's a wonderful opportunity for a number of different companies to come to one location and interview the talent from 10 different schools (Editor's note: Schools include: U. of Georgia, U. of Florida, U. of South Carolina, U. of Alabama, LSU, Case Western Reserve, Purdue, U. of Kentucky, Virginia Tech, and Tennessee). It gives them one format for interviewing students. SEMBA is in its fourth year and happens just once a year. It's happening this weekend, as a matter of fact, in Atlanta -- one-stop shopping.

Donna, you mentioned earlier that Tennessee is now competing for applicants against a different set of schools. Who are your toughest competitors these days? Which schools are you seeing Tennessee applicants overlap most with?

When I survey matriculants and nonmatriculants, I find that they are most often also applying to Vanderbilt, Georgia, Penn State -- especially because of their logistics program -- UNC at Chapel Hill and U.Va.

Thanks much for the in-depth look at the Tennessee program.

Thank you. I appreciate the opportunity to discuss it and the application process.


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