MBA rankings are a significant factor for many prospective students when choosing a business school.
However, understanding the methodology behind these rankings, their significance, and how to interpret them is crucial for making an informed decision.
In this article, we will delve into global MBA rankings and provide guidance on how to use or not use them.
What do MBA rankings actually mean?
Different organizations use various methodologies to rank MBA programs.
Here’s a breakdown of the key components considered by four (4) major ranking bodies.
1. Financial Times (FT)
- Weighted Salary: The average salary of alumni three years after graduation, adjusted for variations between industry and region.
- Salary Increase: The percentage increase in salary pre-MBA to post-MBA.
- Value for Money: Calculated using alumni salaries and course costs.
- Career Progress: Measured by changes in the level of seniority and the size of the company alumni work for.
2. The Economist
- New Career Opportunities: Based on the diversity of recruiters, placement success, and student assessment of career services.
- Educational Experience: Includes faculty quality, student quality, and educational experience.
- Networking Opportunities: Alumni effectiveness and student rating of culture and classmates.
3. Bloomberg Businessweek
- Learning: Alumni satisfaction with the academic curriculum and learning environment.
- Entrepreneurship: Resources and support for starting new businesses.
- Diversity: The racial, ethnic, and gender makeup of the student body and faculty.
4. QS World University Rankings
- Employability: Employer reputation and the employment rate of graduates.
- Alumni Outcomes: Alumni success and the ability to start or lead businesses.
- Thought Leadership: Academic reputation, research impact, and the quality of teaching.
Do schools care about their MBA rankings?
The short answer to this question – yes.
Rankings help prospective students compare different programs since they reflect the overall quality of the program, faculty, and resources available to students.
Higher-ranked schools often enjoy better brand recognition, which can influence employers and recruiters. This makes it easier for MBA candidates from higher-ranked schools to secure new career opportunities or attract funding for new business ideas.
The US M7 schools are known as the “magnificent” or “magic” 7 schools. This classification is not based on a ranking list, but each M7 school has similar characteristics that are reflected in MBA rankings:
- Prestige and Recognition: Being part of an M7 school can significantly enhance your resume and career prospects due to the school’s global reputation.
- Networking Opportunities: The close-knit community within and across M7 schools offers unparalleled networking opportunities with peers, faculty, and alumni.
- Educational Quality: The high standards of education and resources ensure that you’ll receive a top-tier business education in addition to leadership training.
Should students care about MBA rankings?
While rankings provide valuable insights, they should not be the sole factor in your decision-making process.
For me, the specific rankings of schools did not matter much. However, I knew that I wanted to attend a top US school, as they share similar qualities in terms of prestige, employment opportunities, networking, and alumni strength. I was confident that attending one of the US M7 schools would help me achieve my goals.
Here are four key factors that you should consider as you weigh up MBA programs.
1. Your priorities
Determine the most important thing that you would like to get out of the program. This is likely to include one of the following: salary increase, industry pivot, career progression, networking opportunities, specialization, change of location.
2. The school’s learning culture
Visit the schools, if possible, and talk to current students and alumni to get firsthand insights. Consider the school’s culture, teaching style, class size, and how well the school’s approach matches your learning preferences.
3. Your personal and professional goals
Assess how well the program fits your personal and professional goals. If you want to get into the finance industry, then consider factors like the school’s faculty expertise in the area of finance, extracurricular opportunities, support services, and alumni networks.
4. Long-term value
Think about the long-term value of getting an MBA from that school. How does the school’s network and reputation support your career growth over time? Is this a city you want to spend two years in? Do you see yourself living there after graduation? Make sure to consider the potential for lifelong learning opportunities and alumni support.
In conclusion
Global MBA rankings are a useful tool, providing a snapshot of various programs’ strengths and weaknesses.
However, it’s essential to dive deeper into the methodologies behind these rankings and align them with your personal and professional goals. By combining the insights from rankings with thorough research and self-reflection, you can make a well-informed decision that best supports your aspirations.
Jeff Zhang currently serves as a Consultant at McKinsey, specializing in private equity, transportation, technology, and sustainability sectors. Before this role, he spearheaded the creation of an innovative final-mile logistics product at a startup, later acquired by Shopify. His background includes significant experience in consulting, logistics and successful applications to global MBA programs.
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