More BW Rankings: Best International B-Schools 2014

I hope you didn’t think we were done with this year’s Businessweek rankings! Next up…the top 20 international MBA programs.

Learn how to make the business school rankings work for you, not against you!

Here are some highlights:

• There are 2 new schools to the top 10 this year, both of which were unranked in 2012: ESMT (3rd place) and Cambridge Judge (6th place).

• ESADE fell dramatically from 6th place in 2012 to 19th place this year. The other school to fall from the top 10 this year was McGill Desautels, which dropped from 10th place to 15th

• Other schools taking a hit this year include Imperial College London (fell from 13th to 23rd); York Schulich (14th to 24th), Erasmus Rotterdam (17th to 25th), and Manchester (19th to 26th).

• New to the rankings this year are ESMT and Cambridge Judge (as mentioned above), as well as Cranfield (ranked at 13 this year), CEIBS (17th place), Concordia Molson (20th), Hult (21st), National University of Singapore (22nd), and Melbourne (27th).

BW provides a comprehensive chart where you can look at the specific ways these schools were ranked, including Intellectual Capital Rank, Employer Survey Rank, and Student Survey Rank. These are all explained in the ranking methodology section.

For Linda’s analysis of the BW rankings and their increased volatility, please see “Businessweek Rankings 2014.”
Are You Misusing the B-School Rankings? Accepted.com: Helping You Write Your Best

Related Resources:

• Businessweek Rankings 2014
• MBA Rankings: Why Should I Care?
• Top 10 B-Schools with the Most Satisfied Graduates

Businessweek Rankings 2014

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

Check out our Zone Pages for more info about the top MBA programs!

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

PayScale: How Much Can You Earn, and How to Earn It?

lydia-frank-payscaleTrying to figure out if grad school will pay off? How much you’ll earn with your career of choice? Which graduate program will position you to for the best payoff?

If so, tune in to our conversation with Lydia Frank of PayScale to find out how to get the stats and info that you need to make an informed financial decision.

00:03:11 – PayScale: who they are and what they do.

00:04:35 – The College Salary Report (and the recent inclusion of grad school data).

00:05:53 – How PayScale collects data (and why you should complete their survey, too!).

00:09:13 – Helpful resources for folks in the research stage.

00:12:47 – What surprises people about the PayScale survey results.

00:16:46 – Different uses for the (many!) resources at PayScale.

00:24:28 – New data we’ll be seeing in the future reports.

00:29:03 – Accounting for the opportunity cost of education in the salary report. (Yes, they do.)

00:30:28 – Advice from Lydia for balancing what you love with what pays.

Listen to the full conversation to learn more!*Theme music is courtesy of podcastthemes.com.

Related Links:

• Which Grad Schools Produce the Highest Earners?
• Lifetime Earnings by Degree & Major
Social Mobility Index

Related Shows:

• Career Direction: It’s Ok to Love Your Job!
• How to Become a Management Consultant
• The Facts About Financial Services
• Is a PhD a Good Idea?
• Which Schools are Good for PE/VC and VC-Backed Entrepreneurship
• Interview with Anna Runyan of Classy Career Girl

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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?

New LinkedIn University Rankings

Need college admissions advice? Check out our College Admissions 101 Pages!

LinkedIn Joins the Rankings Scene.

Exciting news! LinkedIn just launched new rankings that connect prospective students to universities based on career outcomes. Here’s how they did it (in their words) using software developers as an example:

1. First, we identified the top companies where software developers are choosing to work.

2. Next, we found people on LinkedIn who work as software developers and saw where they went to school.

3. Finally, for each school, we found the percentage of these alumni who’ve landed software development jobs at these top companies, then compared the percentages to come up with the list.

You can look up your prospective career, and then view the top universities with the most graduates in top companies in that prospective career. LI defines the most desirable companies as those “that are the best at attracting and retaining talent in that profession.”

For example, let’s take a look at finance professionals. The following schools were ranked based on how successful recent graduates were at landing desirable finance jobs.

Finance Professionals

1. University of Pennsylvania

2. Yale

3. Georgetown

4. Princeton

5. Columbia

6. NYU

7. Duke

8. Harvard

9. Cornell

10. Dartmouth

For marketing professionals, the list goes as follows.

Marketers

1. University of Pennsylvania

2. University of Michigan

3. Harvard

4. NYU

5. Cornell

6. Georgetown

7. Stanford

8. UC Berkeley

9. Northwestern

10. University of Texas at Austin

One quick flaw that I see here is that you don’t know the difference or magnitude of difference between the schools. Also some of the categories are very broad, like “media professionals.” That could include writers, actors, musicians, business people – these are all people involved in media.

But the concept of ranking which schools send the most grads to specific fields, or even better yet, to desirable employers in those fields is a good one IMO.

You can read more about their methodology here.

Download 5 Fatal Flaws to Avoid to learn how to eliminate the most common flaws in your application essays.

Accepted.com: Helping You Write Your Best

Related Resources:

• Top 10 Colleges with the Highest Paid Grads
• U.S. News 2015 Best Colleges
College Admissions 101