The Business Behind Business School Rankings
Each year, a number of publications release rankings of the country's top MBA programs. Publications such as Bloomberg BusinessWeek, The Economist, Financial Times, Forbes, and US News & World Report all report on business school rankings. Recruiters at business schools also monitor these rankings to help them hire from the top MBA programs.
Yet, what do these rankings really mean?
Breaking Down Business School Rankings
Each major MBA ranking uses a particular methodology to rank schools, says John A. Byrne, who created the MBA rankings for BusinessWeek, more than 20 years ago. Byrne now runs the MBA social network Poets & Quants and in an article published on the site says: "I think it's important for everyone to understand that all these lists--including the one I created in 1988--tell you pretty much what the methodology spits out," Byrne explains. "So it's very crucial to get a grip on the flaws of each survey in evaluating the worth of the results."
For example, the main focus of Bloomberg BusinessWeek's rankings is on MBA student and employer satisfaction, Byrne adds. In its most recent rankings, Bloomberg BusinessWeek claims, the MBA program at the University of Chicago, Booth School of Business best prepares students to perform successfully in the corporate world. The Economist agrees the Booth School of Business should be considered the top MBA program, primarily because, according to the publication's ranking calculations, its students receive the best education and personal development opportunities throughout the MBA program, and it is also easier for its graduates to embark in new careers.
The Financial Times' MBA rankings, on the other hand, emphasize diversity and salaries. With students from more than 120 countries, many of whom could end working in London, where MBA salaries tend to be high, the London Business School nabs the Financial Times' MBA rankings top position.
It is all about return on investment in the Forbes' MBA rankings. Stanford graduates report the highest ROI, according to Forbes.
Finally, US News & World Report's MBA rankings highlight business school perception and salaries, and claims MBA program directors and recruiters view most favorably the MBA program at Harvard Business School. Harvard graduates reportedly land higher-compensation jobs faster than their peers.
Beyond the Traditional MBA Program Ranking
In his Financial Times' blog post "Demystifying the MBA Rankings," Miguel Suarez of IE Business School in Madrid says each of the rankings has its own setbacks. "The rankings will only answer the questions that you ask," Suarez explains, reiterating what he learned from an editor. "The mistake is to use them as an absolute truth," he adds.
To get a fuller picture of MBA programs, readers posting comments on MBA sites recommend potential students consider additional data, including the América Economía MBA rankings (focused on business school selectivity and prestige) and The Aspen Institute rankings (listing MBA programs that value social impact and environmental management). Harvard tops the América Economía MBA rankings, while York University in Canada places first on The Aspen Institute rankings.
Again, the elements each of the MBA rankings measures to determine MBA program quality are limited. Therefore, prospective students should take the MBA rankings as one tool among many to determine the best business school to attend.
Byrne points out there are elements beyond those measured by the traditional MBA rankings that could be more important in determining an MBA program's true value. For instance, he says, students must evaluate whether the cost of business school is worth the time and effort.
Besides their higher education degrees and research and publishing capabilities, MBA professors should also be able to captivate students with their lectures. In fact, MBA students should be able to learn from fellow students and professors, both inside and outside the classroom. Courses, meanwhile, should prepare students to succeed in their careers, while the MBA program's alumni network should be available throughout their professional lives. The legacy of a great MBA program should not only be a comfortable lifestyle, but also lifelong friendships and personal improvement.
"There is not one best school for everyone," Byrne says. "You can get a great MBA education at a lot of schools."
