The Significance of MBA Rankings for Applicants

“Business school rankings? Well… they’re here to stay,” says Nancy McGaw, deputy director of the business and society program at the New York-based Aspen Institute. The institute’s sustainability rankings, Beyond Grey Pinstripes, have proved influential over the past decade.

Beyond Grey Pinstripes itself is no more.: “Since we began the rankings, the number of schools providing information to us has expanded massively. It’s now more time-intensive than we can cope with, which means that we have, in some part, made a contribution.”

There is little that divides opinion as much as the issue of MBA rankings. Even McGaw admits, “The schools we speak to both love and hate them.” Some commentators distance themselves from rankings, while others argue that they provide valuable differentiation.

McGaw agrees: “It’s helpful to have a third party assessment. But have rankings really helped us? I’m not so sure. It’s important to take each ranking as one input, not as the final determination. It’s not just about formulas and calculations and salaries and financial benefits.”

There are five major stakeholder communities in MBA rankings. Students,  schools, academics, recruiters and alumni.

Business schools

Simon Evenett, academic director of the St Gallen MBA in Switzerland, says: “St Gallen takes the rankings of our programs very seriously. However we do not let rankings drive our overall strategy. This university has been educating managers for over 100 years and I think we have a pretty good idea what it takes to prepare them for the global labor market.”

Despite some schools claiming that they don’t worry too much about them, a higher-ranked school can, theoretically charge higher fees, develop better facilities, attract leading academics and resultantly ensnare the greatest student talent.

Valérie Claude-Gaudillat, MBA director at Audencia Nantes in France says: “For schools, [rankings] play a key role in getting the program known. Our own MBA is relatively young, but thanks to a ranking in the Which MBA? Guide in The Economist, our visibility has been increased considerably.

Academics

For academics, a school’s prestige is something to be considered carefully. It is important to be associated with a respected school, and competition between such schools drives the war for talent, which has never been fiercer.

After all, academics are professionals. If you rise to the top of the profession you expect respect and remuneration. One is more likely to find this, the theory goes, at a higher-ranked school which should not only be expected to pay better but to have the best students and the greater prestige. 

Alumni

MBA alumni expect their school to maintain or improve upon their rankings. There is little gain in graduating from a top-ranked school, particularly in the US, with its culture of alumni giving, only to see the school losing rank. This is why the issue of alumni input into rankings is problematic.

MBA recruiters

If a recruiter believes that a school produces below average MBA alumni, they will not pay the salaries that reflect students’ desired return on investment, and the whole house of cards collapses.

Nuria Guilera, MBA marketing director at ESADE Business School, agrees: “Rankings definitely matter and play an important role for recruiters as much as for prospective MBA candidates.  MBA degrees are an absolute requirement to have access to many job positions, and companies use rankings as a ‘guide’ to help them understand the value of this degree.”

MBA candidates

For some, the belief that they are going to a recognized school that will help them improve their careers is important. Business school requires time and investment, and getting a return on the investment is important.

MBA applicants: proceed with caution!

Business school experts are at pains to explain that rankings are not the be-all and end-all of the decision-making process. They urge caution and show that rankings consist of varying – often flawed – methodologies. It’s virtually impossible, they say, to genuinely compare schools scientifically; candidates must dig far deeper, and find out how the school fits them and their ambitions.

Sue Beech, distance learning program manager at Warwick Business School, says: “I think it’s important to be intelligent in your reading of the rankings. Be aware that all the different criteria have different weightings and if the thing that you’re most interested in has a very slight weighting then perhaps that particular ranking isn’t for you.”

Mary Granger, admissions manager at Spain’s ESADE business school concurs. “Candidates shouldn’t see rankings as the only criterion to base their selection on. We believe that MBA alumni getting the right career at the right school is more important than coming out of business school and getting the biggest salary, or fastest return on investment.”

So how does this impact on the MBA candidate trying to shortlist schools to apply to? Firstly, decide what it is that you want from your MBA. Is it purely to boost salary? Is it to widen your horizons? Is it to become an entrepreneur? Is sustainable business important to you?

Then, look at the rankings, taking into account all of the above. Finally, easier now than it’s ever been, look even deeper to see which school feels like the right fit for you.