Businessweek Rankings 2014

Let’s see how full-time MBA programs in the U.S. fared this year on the BW rankings…

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There were some huge changes this year! Let’s take a look at some of the highlights:

• Newcomers to the top 20 this year are Yale SOM, which made a huge jump from 21st place to 10th place; Maryland Smith which went from 24th to 17th place; and Emory Goizueta which jumped from 22nd place to 18th place this year.

• There are three new schools in the top 10 this year – Yale SOM, as mentioned above; Columbia Business School (13th in 2012 and 5th this year); and CMU Tepper (which moved just one place from 11th place to 10th place).

• Beyond that, there was some major shifting in the rankings. The top 3 schools were all different this year (Wharton and Booth still there, but rearranged), with Harvard Business School falling from 2nd place to 8th place.

UVA Darden also fell significantly this year, from 10th place to 20th.

• Big jumpers further down the rankings include Rice University Jones (from 34th to 25th); UC Irvine Merage (43rd to 31st); and Rochester Simon (50th to 38th).

• The schools that fell the most in the rankings include Texas A&M Mays (26th to 42nd); University of Wisconsin-Madison (33rd to 44th); Boston University (39th to 57th); Babson Olin (from 42nd to 58th); Thunderbird (45th to 62nd); and Arizona Carey (49th to 67th).

And here’s the scoop on the best U.S. undergraduate business schools in 2014…

Do MBA rankings really matter? Click here for the 2-min answer.

Some highlights include:

• Newcomers to the top 20 are Northeastern (from 25th last year to 19th this year) and CMU Tepper (from 24th last year to 17th this year).

• The only new school in the top 10 this year is Indiana Kelley, which jumped from 13th place last year to 8th place this year.

Michigan Ross fell from the top 10, from 8th place to 12th place.

• Big jumpers include Southern Methodist Cox, which jumped from 30th to 21st place; Babson, which jumped from 36th place to 26th place; UM Amherst Isenberg, which jumped from 45th to 36th; Bryant, which jumped from 63rd to 49th; and Case Western Reserve Weatherhead which jumped from 69th to 50th.

• Big falls include Villanova, which fell from 15th place to 24th; U of Illinois Urbana-Champaign which fell from 21st to 34th; and James Madison University which fell from 29th to 40th place.

For details on how ranking methodology see:

Best Business Schools 2014: How They Were Ranked

Best Undergraduate Business Schools 2014: How We Ranked Them

Analysis of the 2014 Businessweek Rankings

Businessweek made changes to its methodology (presented here and analyzed here by John Byrne, the founder of the BW rankings) this year.

The Basics of BW’s Rankings Remain Unchanged

This year, as in the past, BW surveyed recruiters and students. The recruiter satisfaction results comprise 45% of the ranking. The student satisfaction survey results comprise another 45% and the remaining 10% is determined by “expertise of each school’s faculty” as evidenced by faculty research published in prominent academic journals AKA intellectual capital.

What’s New in BW’s Rankings Methodology?

• The employer ranking reflects this year’s data only. Previous rankings used data from the last three surveys or six years of biannual rankings data while weighting the most recent year most heavily.

BW surveyed fifteen times the recruiters this year than it did in previous years. Previously, BW surveyed major recruiters who tended to recruit at multiple business schools. This year, BW attempted to survey as many MBA recruiters as possible, including “recruiters” who recruit primarily if not exclusively at their alma mater. The increased survey size is a major methodology change. The alumni recruiters may have a certain bias towards the school they attended. BW attempted statistically to reduce the impact of that bias, but it probably helped smaller schools like Duke, Tepper, and Yale, and hurt the traditional leaders, like Harvard, Wharton, and Chicago.

Impact of the Methodology Changes

• Surprise! The results will shock many applicants. Seven programs, including Duke and Yale, rank above HBS and MIT. Indiana Kelley and Maryland Smith rank above Haas, NYU Stern, and Darden. These are unexpected results.

• Reemphasizes the importance of understanding methodology. The changes highlight the need for anyone using the rankings as indications of “quality” or even reputation and brand value (a bad idea in my book) to look at the underlying data. Smith is ranked overall at 17. It was ranked #1 for student satisfaction and #51 in the employer survey ranking. Applicants to Smith should inquire about what is changing in its career management center. Clearly there is a satisfaction gap that has to be addressed.

• Increased volatility. Since BW has removed older rankings data from the ranking and has dramatically widened the survey pool while incorporating alumni recruiters, you are guaranteed to see more changes and more radical changes than with the previous methodology.

• Cognitive Dissonance. Either BW rankings will lose credibility because they don’t conform to expectations and will be more volatile, or people’s perception of the programs will change because of the BW rankings.

My money is on the former: loss of credibility. If BW’s results become less stable and predictable (like The Economist’s), they are more likely to lose credibility than to contribute to changes in school reputation.

As always my best advice to applicants reviewing the rankings is to:

• Use specialty rankings to get a sense of what schools excel in your areas of interest.

• Use the data that the ranking databases provide.

• If you have any thought of actually using the overall rankings, understand what they measure, and ask yourself if those qualities are of paramount importance to you. BW has been wonderfully transparent and even shared the questions actually asked in the survey.

• Layer in reputation and brand, i.e. ranking, after determining what schools best support your goals and are most likely to accept you.

Are You Misusing the B-School Rankings?

Linda AbrahamBy Linda Abraham, president and founder of Accepted.com and co-author of the new, definitive book on MBA admissions, MBA Admission for Smarties: The No-Nonsense Guide to Acceptance at Top Business Schools.

 

Related Resources:

• 2014 Economist MBA Rankings
• MBA Rankings: Why Should I Care?
• U.S. News 2015 Best Colleges

What’s an MBA Really Worth?

Applying to top MBA programs? Download your free copy of Best MBA Programs: A Guide to Selecting the Right One

How much do MBAs really earn?

This is the question tackled in a recent Poets & Quants article in which John Byrne presents PayScale data provided exclusively for P&Q. In the analysis, PayScale calculates the estimated median pay and bonuses (not including stock-based compensation, retirement benefits, or non-cash benefits like healthcare) of graduates from the top 50 U.S. MBA programs from 2004 to 2014. Here are some of the highlights from the article:

Harvard, Stanford, and Wharton earn the most over a 20-year period (at $3,233,000, $3,011,000 and $2,989,000 respectively), with average income at the former nearly doubling the average income of graduates from Texas A&M’s Mays Business School (at $1,781,820.)

• Some schools “punched above their weight class” like Boston University, whose graduates earned an average of $2,329,000, making the school rank in 19th place on this list, while ranked overall (in the regular MBA full-time rankings) by P&Q in 40th.

• Another high roller from lower down on the list is UC-Irvine Merage, where MBAs earn $2,319,932 over 20 years, putting them in 21st place, though generally ranked in 47th.

• More food for thought: At HBS, the average age of graduation is 29 years old. Our 20-year payout here brings these MBAs up to 49 years old, giving them another 16 years until retirement at 65. Based on their 20-year earnings, they may earn another $3.2 million, which combined with their 20-year earnings, brings their total up to $6.5 million. (Remember, this is a conservative estimate as it doesn’t include stock and non-cash compensation.)

• Compare the above HBS figures to the $2.5 million estimated lifetime earnings (age 24 to 64) of people with a master’s degree (non-MBA). (Data from the U.S. Census Bureau.) Someone with an MBA from Harvard will earn nearly three times as much as someone with a master’s degree. And someone with an MBA from Texas A&M will still earn about $1 million more than the average MA/MS holder.

• More comparisons (based on U.S. Census Bureau data): The average high school graduate can expect to earn $1.2 million in a lifetime, compared to the $2.1 million of someone with a bachelor’s degree. PhDs earn $3.4 million on average during their working lifetime. Doctors and lawyers can expect lifetime earnings of about $4.4 million – still less than the lifetime earnings of MBAs from at least 28 business schools.

• According to PayScale data, graduates from BA programs earn a median $1,301,000 20 years post-graduation. All MBAs, on average, earned $1,771,000, with those in the top 50 earning a median $2,266,000. An MBA in general will earn you about half a million more than a BA; an MBA from a top 50 school will get you yet another half a million more.

Looking for admissions advice?
Source: PayScale for Poets&Quants

For MBA admissions tips, check out our MBA Admissions 101 Pages!
Source: Payscale Inc. for 20-year estimate, business schools reporting to U.S. News for 2013 starting pay and bonus.

Learn How to Choose the Best MBA Program for You!

Accepted.com: Helping You Write Your Best

Related Resources:

Best MBA Programs: A Guide to Selecting the Right One
• B-Schools with the Highest ROIs
• Which Graduate Schools Should You Apply To?

Are You Growth Minded? Mastering Kellogg’s Changing Brand

Episode 2 in our Big Brand Theory Series for MBA applicants: Northwestern Kellogg.

Two days before Kellogg’s Dean Sally Blount announced Kellogg’s motto change from “Think Bravely” to “Inspiring Growth,” I received an email and video link in my inbox from my education hero, Sal Khan about why he will never tell his son that he is smart.

His Khan Academy disrupted the education paradigm and made me a super fan years ago when my then, 10-year-old son ran into my arms, but not for a hug…no, he wanted my computer so he could earn badges. At first I thought he was planning to play a game. I limited his computer use to 15 minutes and then watched him open up the Khan Academy site and whiz through math problems that were two grades ahead of his own (earning his badges along the way). I didn’t take the computer away until dinnertime.

His love for the Khan Academy reminded me of Dr. Carol Dweck’s research on motivation, success and the growth mindset. I had read her work a few years before my son fell in love with the Khan Academy. In her book, Mindset: The New Psychology of Success, which I highly recommend if you are applying to Kellogg, she compares and contrasts growth-oriented minds and fixed minds

The growth mindset is something to behold, and I watched it unfold over the years as my son solved my husband’s 5X5X5 Rubik’s cube, conquered my father in chess, and created “inventions” that he thought would make my life easier. I love the way his mind works. Thank you, Sal Khan and Thank you, Carol Dweck.

However, as a former admission dean and director, I often wondered when I would see Dr. Dweck’s concepts flourish in business schools. While I think several schools filter applicants for growth mindsets and challenge their students to stretch themselves, Kellogg’s new brand strategy was the first time I’ve seen Dr. Dweck’s approach become the very essence of the school.

Just as the growth mindset is dynamic and constantly seeks challenges and change, Kellogg has also reinvented itself many times over. I don’t think people will ever get over the fact that Kellogg is a marketing giant. However, since Dean Blount’s arrival, they’ve moved from “Team-Oriented” to “Think Bravely” to “Inspiring Growth” in the span of just a few years. These moves are reflected in their essay prompts, in their video essays, and in their interviews. You as an applicant need to respond to this change and address the filters Kellogg has added to its admissions process.

When working with clients applying to Kellogg, I always discuss my clients’ greatest challenges; then I push and push and push, until we discover something that they were initially afraid to reveal. If you are doing this yourself, realize that this inquiry means going deep within your psyche to figure out if you truly have a growth mindset or a fixed mindset (and I always recommend reading Dr. Dweck’s research. See link to her book above).

If at the end of our meetings my clients realize that they are not happy stretching, taking risks, and testing themselves, I ask them to rethink their school choice. Yes, Kellogg students are team-oriented; yes, Kellogg students are bright; yes, Kellogg students are personable, but Dean Blount got it right: Kellogg students are intellectually curious. They are resourceful. They challenge themselves to go beyond what they think are their limits. They have a growth mindset, and Kellogg inspires that growth.

For you the Kellogg motto means showing that you have the mindset to benefit from and contribute to Kellogg’s community dedicated to growth. As you apply to Kellogg demonstrate that you share Kellogg’s commitment to growth as an individual and as a future leader of your community and the business world.

(Look for Next Week’s Episode in the Big Brand Theory: Does Stanford Really Change the World?)

Download our free special report: Best MBA Programs - A Guide to Selecting the Right One!

Natalie Grinblatt Epstein By , an accomplished Accepted.com consultant/editor (since 2008) and entrepreneur. Natalie is a former MBA Admissions Dean and Director at Ross, Johnson, and Carey.

 

Related Resources:

Kellogg 2015 MBA Essay Tips & Deadlines
Leadership in Admissions

• What Does “At The Very Center of Business” Mean for CBS Applicants? 

2014 Economist MBA Rankings

2014 Economist Full-Time Global MBA Rankings:Download your free copy of MBA Rankings: What You Need to Know

1. Chicago Booth (U.S.)

2. Dartmouth Tuck (U.S.)

3. UVA Darden (U.S.)

4. HEC Paris (France)

5. IESE Business School (Spain)

6. Harvard Business School (U.S.)

7. UC Berkeley Haas (U.S.)

8. NYU Stern (U.S.)

9. Stanford GSB (U.S.)

10. Columbia Business School (U.S.)

11. UPenn Wharton (U.S.)

12. MIT Sloan (U.S.)

13. UCLA Anderson (U.S.)

14. Northwestern Kellogg (U.S.)

15. London Business School (U.K.)

16. University of Queensland Business School (Australia)

17. Emory Goizueta (U.S.)

18. INSEAD (France)

19. Yale SOM (U.S.)

20. Michigan Ross (U.S.)

Top 10 B-Schools with the Highest GMAT Scores:

table

Top 10 MBA Programs for “Potential to Network”:

1. HEC Paris (France)

2. Vlerick Leuven Gent Management School (Belgium)

3. Thunderbird School for Global Management (U.S.)

4. NYU Stern (U.S.)

5. UC Berkeley Haas (U.S.)

6. Notre Dame Mendoza (U.S.)

7. Warwick Business School (U.K.)

8. USC Marshall (U.S.)

9. Melbourne Business School (Australia)

10. UVA Darden (U.S.)

A Poets & Quants article on the rankings states that at least 17 business schools declined to participate in this year’s rankings, many claiming that The Economist’s methodology is faulty. Some of these schools include Babson Olin, Toronto Rotman, Sauder School (British Columbia), Minnesota Carlson, McGill Desautels, Purdue Krannert, and, University of Manchester (U.K.), Imperial College Business School (U.K.), University of Illinois at Urbana-Champaign.

Regarding methodology, 80% of the data used for the rankings is derived from surveys provided by the schools themselves. The remaining 20% of information comes from current students and recent grads.

John Byrne notes that since The Economist rankings launched in 2002, Harvard, Stanford, and Wharton have never topped the charts. This year, the schools rank at 6th, 9th, and 11th place, respectively. In 2005, Harvard and Wharton weren’t included in the rankings as they declined to contribute data. (That year, those two programs also declined to participate with the Businessweek rankings.)

Matt Symonds, who wrote a critique of the rankings, “Leave no MBA ranking unquestioned,” provides these additional points:

• Booth took the #1 spot for the third year in a row, and the fifth time in the last eight years.

• There are only six European schools in the top 25; in 2008, there were 11. This year, Cambridge Judge and Oxford Saïd both dropped 15 places, to 52nd and 69th place respectively.

• The breakdown of the criteria used to rank the schools goes as follows: personal development/education experience (35%), open new career opportunities (35%), increase salary (20%), and potential to network (10%).

• This year, more than 20 schools rose or fell by double-digits (and thus the rankings have been criticized for their volatility).

• Big droppers include University of Bath School of Management which fell 23 spots from its previous 20th place; York Schulich fell to 41st place from 22nd last year.

• Big jumpers include Kellogg and Yale which both jumped 9 places up to 14th and 19th place respectively; Rochester Simon and Temple Fox both jumped 20 places to 58th and 57th place respectively.

Are You Misusing the B-School Rankings?

Accepted.com: Helping You Write Your Best

Related Resources:

• MBA Rankings: Why Should I Care?
MBA Rankings: What You Need to Know
• Top 10 B-Schools with the Most Satisfied Graduates

2015 Kellogg Executive MBA Admissions Tips

Want more EMBA essay tips? The Kellogg Executive MBA questions are among the most comprehensive, thorough, and numerous of any EMBA application. It takes significant effort to put together a strong set of Kellogg EMBA essays, and that fact weeds out potential students who are not seriously interested in this competitive program. Moreover, the questions encompass almost every basic type: goals, behavioral (the experience and your reflection on it), evaluative (greatest skills and talents). It offers more than one optional essay. This set of essays requires the writer to wear different hats and excel at different types of self-analysis. Not least, the messages and contents of the essays should be coordinated to strategically and holistically create a picture of you that is vivid, distinguishing, and multifaceted without being contradictory or jumbled. Note that there are no word limits, therefore use your judgment; don’t write all 1,000 word essays. Depending on the question and what you have to say, 400-750 is a good range to target.

ESSAYS:

JOB DESCRIPTION: Describe the unit for which you are responsible and relate it to the total organization in terms of size, scope, and autonomy of responsibility. What human resources, budget, and capital investment are you responsible for? Please describe your position.

A straightforward question – it contains several components, so be sure to answer all of them. Try to work in an anecdote or two somewhere, for example, if part of your role is to troubleshoot issues with global clients, give a brief example.

1. Why have you elected to apply to the Kellogg School Executive MBA Program?

This essay should discuss your interest in the Kellogg program as a means to acquire the learning you seek in light of your goals. Clarify why you are pursuing the executive program specifically. You can also discuss other benefits that relate to personal preferences such as environment and the program’s schedule, structure, and location. Be specific and add thoughtful discussion, don’t just reiterate points from the website. If possible, cite conversations with students or alumni, including relevant insights you’ve gained from them.

2. What are your goals and objectives and how will a Kellogg Executive MBA help you achieve these? Please feel free to discuss both personal and professional goals.

Discuss your goals in specific terms: industry, likely positions, which company or companies, possibly where, what you expect to do, possibly challenges you anticipate. Also discuss what you want to accomplish short- and long-term. To make the essay truly compelling, also show how your goals are rooted in your experience, what motivates your goals, and your vision for your goals. Finally, discuss the learning needs these goals engender and summarize how the Kellogg MBA meets them, saving the greater detail for essay 1.

3. Discuss a professional situation that did not end successfully. Why did you or your peers consider the situation to have negative results? How did you resolve the situation? Did it change your management style? If so, how?

In selecting the story to discuss, use something relatively recent (even though unsuccessful, it can still show you at work in an engaging context and at a decision making level with high accountability), and something substantive. Be frank about your role as it may have contributed to the lack of success. For structure, keep it simple: first tell the story, and then address the remaining questions. The last part, about how it may have changed your management style, is a good opportunity to show you’ve not only learned from the experience but applied the learning, by briefly citing a specific example of your improved management style.

4. What do you consider to be your greatest skills and talents? How will you use these to contribute to an Executive MBA class as well as to a study group?

First, what not to do: strain to find some unique skill or talent that no one else possesses in an effort to differentiate yourself. It doesn’t exist. Rather, look inward – whether it’s creativity, initiative, leadership, strategic thinking, interpersonal astuteness, analytic capability, mentoring/coaching – it’s the details and stories of how you manifest this quality that will make this essay exciting while strategically supporting and enhancing the other essays. Select 2-3 skills/talents that differ from each other (i.e., don’t do quant skills and analytic skills, or communication skills and interpersonal skills) and tell a quick story or anecdote illustrating each. Finally, for each, comment on how it will help you contribute by giving an example – these comments can be short, as they story itself will really convey how the skill or talent will let you contribute.

5. Describe how your relevant global experiences have influenced you professionally. (Optional)

This is a great essay for most people to answer – if you’ve had any global experience, it can only have influenced you professionally. If you’ve had a lot of global experiences, don’t just do a survey of them and don’t feel you must write about all of them. Select the most meaningful experiences and tell the stories, and then explaining the influence on you.

6. Is there anything else that you would like to add to help us in evaluating your candidacy? (Optional)

This question invites you to present new material that you think will enhance your application, as well as to explain anything that needs explaining (e.g., gap in employment). As far as non-necessary points, keep in mind that if you are making the adcom read more, there should be a clear value to the information. Finally, considering the many essays, keep it short.

7. Describe any major reports, instructional materials, or manuals that you have prepared or any research, inventions, or other creative work. (Optional)

Note, “major.” Do not wrack your brain for every report or training material you’ve contributed to. If you have numerous patents, ditto. Focus on the most important ones of whatever type of material you are describing. A nice format is an annotated bullet list.

8. Please list the business/professional/community organizations in which you are active. (Optional)

Note “are active.” Not “were active.”

Rolling admissionsSuggested deadlines are June 15th for programs beginning in September, andOctober 15th for programs beginning in January.

Download your free special report, 'Ace the EMBA.'

Cindy Tokumitsu By , co-author of The EMBA Edge, and author of the free special report, Ace the EMBA. Cindy has helped MBA applicants get accepted to top EMBA programs around the world. She is delighted to help you too!