Saturday, March 17, 2018

New Wall Street Journal MBA Ranking Methodology

Times Higher Education (THE) and the WSJ (Journal) have decided to combine their ranking methodologies.  

The methodology will be based on surveys to both alumni and schools, with the possibility that THE and the Journal may survey employers and recruiters at another time. 

In general, the WSJ plans to rank programs under four categories: 
  1. resources (with a weight of 25%), 
  2. engagement (25%), 
  3. outcomes (38%), and 
  4. environment (12%), to measure “the social and human environment the students find themselves in and how well the school will prepare them for a global market.”

The survey includes 21 different metrics:
  • The ranking is heavily dependent on the views of alumni, with 12 of the 21 data points informed by responses from alumni who are both two years and four years out of school.
  • The new ranking will not measure the quality of incoming students in a program, a significant part of the way U.S. News ranks MBA programs by using GMAT and GRE scores, grade-point-averages and acceptance rates.
  • Career outcomes will account for 38% of the total ranking. 
  • The two metrics getting the most weight are the difference between pre-MBA and post-MBA salaries, which will be given a weight of 12%, and faculty-per-student ratios, which will account for 10% of the ranking.

Rankings are becoming more and more disputed. Academics often argue that rankings are misleading and disingenuous. THE is entering the business school market 31 years after Businessweek published its first MBA ranking and 20 years after the debut of the global MBA ranking from The Financial Times. The proliferation of rankings, fueled by consumer interest in them, has largely diminished the influence any one ranking has on the market.

Under resources, meant to measure the resources available to the school to ensure quality teaching and support, there are five measures with four of them taken from the self-reported data by schools and one data point informed by alumni surveys:

Faculty per student (10%)
Publication per faculty (4%)
Faculty with Ph.D./terminal degree (5%)
Career support staff per student (3%)
Career support effectiveness (3%)

Alumni surveys will account for the five metrics THE and WSJ will use to attempt to measure what it calls “the school’s teaching quality and the student’s learning experience:

Recommend (5%)
Collaborate (5%)
Engagement (5%)
Real world (5%)
Research (5%)

This section will include a series of questions on the alumni survey, including “If a friend or a family member were considering going to business school, based on your experience, how likely or unlikely are you to recommend your school to them?”

To get at the degree of collaboration at a school, alumni are being asked, “To what extent did you have the opportunity to interact with the faculty and teachers at your school as part of your learning experience?”

To measure the real world implications of the program, alumni are asked to respond to these questions: 
1. “To what extent did the teaching at your school support applying your learning to the real world?;” 2. “To what extent did your teachers present and discuss recent real-world cases?” 
3. “To what extent did you have opportunities to meet and work with professionals with current real-world knowledge (outside your teachers/lecturers)?”

And when it came to research, alumni are asked the following question: “To what extent did your teachers present and discuss current research?”

The outcome category, meantime, will take into account six separate metrics. Besides differences in pre-and-post salaries, which does not appear to account for sign-on bonuses or other guaranteed compensation, the survey attempts to measure:

Salary difference (12%)
Opportunities (5%)
Worth (5%)
Entrepreneurship (5%)
Social good (5%)
Network (6%)

The ranking will judge opportunities based on alumni responses to what they perceive to be the school’s impact on their careers. It will measure “worth” on alum’s perceived worth of their degree, and it will judge the school’s entrepreneurship efforts on alumni opinion of their school’s teaching skills relevant to starting a business.

One of more intriguing efforts in the ranking concerns its attempt to measure social good. Ultimately, the ranking will do this by asking alumni how many hours of volunteer work they did in the past year. “This measures the degree to which a business school is inculcating the ethos of social good in its graduates,” according to the presentation.

And, finally, to measure the effectiveness of a school’s alumni network, alumni are being asked the following: 
1. “To what extent have you helped other alumni secure paid positions?” 
2. “To what extent have you helped other alumni in matters beyond securing a new position?” 
3. “How useful was your school’s alumni network in helping you secure a position?” 
4. “To what extent, beyond helping to secure a new job, have you used your school’s alumni network since finishing your degree?”

The least weighted section of the ranking will cover a category dubbed “environment,” meant to measure “the social and human environment the students find themselves in and how well the school will prepare them for the global market.” The section will include five different metrics, all provided by the schools, little of which has anything to do with the actual quality of a program.

Economic diversity (2) based on first-generation students
Faculty gender diversity (2%)
Students gender diversity (2%)
International staff (2%)
International students (2%)

Wednesday, March 14, 2018

フィナンシャル・タイムズ:MBAs lose favour among business students, survey finds

Prospective business school students are increasingly shunning MBAs in favor of specialist masters degrees that they see as offering a faster and cheaper route to well-paid jobs, according to research.

Two-thirds of those considering a business school place said they would choose a specialist masters degree over an MBA course, the survey by Carrington Crisp, a London-based education marketing group, found.

This was up from 48%in an identical survey conducted by Carrington Crisp last year. The research involved about 1,000 prospective business school students, most of whom were based in the UK.

The growing interest in specialist business masters degrees is partly driven by greater competition for jobs due to record numbers of people attending UK universities. Specialist masters courses can be taken straight after completing an undergraduate degree, unlike MBAs, where work experience is expected on most programmes.

Specialist masters degrees also tend to cost students considerably less in tuition fees than the six-figure sums the most highly regarded MBA programmes now involve. This partly reflects how specialist masters courses often last one year, whereas MBAs usually run for two.

UK employers prefer people with specialist business masters degrees because they are more skilled than those with only undergraduate qualifications, but do not demand the high salaries that MBA students expect. Carrington Crisp’s findings add weight to an argument by some business school deans that higher education institutions should close their MBA programmes.

The University of Iowa’s Tippie College of Business announced in August last year that it would be phasing out its two-year course, just months after it had been ranked 84th out of 100 on the Financial Times’ global MBA list.

Other institutions, such as King’s College London, have opted against launching MBA courses in the first place, citing skepticism among employers about the value of the qualification by comparison with specialist business masters degrees.

Just 31% 1,056 prospective business school students taking part in the Carrington Crisp survey said they would probably complete an MBA at some point — a figure unchanged from last year’s research. However, the percentage claiming that a specialist masters qualification would be just as valuable as an MBA increased from about a third last year to almost a half in the latest survey.

The Most Affordable Highly Ranked Online MBA Programs

The Most Affordable Highly Ranked Online MBA Programs

Mississippi State tops the list with a tuition of $13,680. Closing out the list is the #1 ranked online MBA program from the Carnegie Mellon Tepper School of Business, with a tuition of $128,000.

An expensive price tag is not always the best program for everyone, and at the same time, an inexpensive program does not necessarily indicate a poor-quality program. Online MBAs can offer a wide range of options for different kinds of students." 

The 10 most affordable top-ranked online MBA programs are:

Mississippi State
Ball State (Miller)
North Dakota
Arkansas State-Jonesboro
Wisconsin MBA Consortium
Kennesaw State (Coles)
Georgia Southern
University of Mississippi

Thursday, March 8, 2018

The Economist: Best MBA Programs for Culture and Classmates

Advantages of Euro MBAs

Here are three reasons to consider applying to European programs:

  1. Most European MBA programs run for 12-18 months: The condensed European format means that you spend less time out of the workforce. This can be advantageous financially, both because there is a diminished opportunity cost, and also because the European programs are often less expensive in an absolute sense.
  2. If you want a truly international career: While both domestic and European programs draw students from all over the world, the top European programs have an eclectic, diversified student body. At Tuck, for instance, around 33% of the class is international, while at London Business School the average is 89%.) Students in European programs benefit from learning and building relationships in a global community. Schools like London Business School, INSEAD, HEC and IESE also have global brand recognition, which can help graduates find employment both domestically and abroad after graduation.
  3. If your GMAT or GRE is somewhat low: The average GMAT at Harvard Business School is 730, while the average GMAT at both London Business School and INSEAD is 708. While these are still impressive numbers, European programs tend to place less emphasis on test scores, and have historically accepted strong American candidates with test scores that don’t reflect their potential. Nevertheless, the caliber of student and of instruction is exceptionally high at the best European programs, and graduates receive an education that is comparable to the top American programs.

Wednesday, March 7, 2018

イェール大学経営大学院 Dean 退学

Yale SOM Dean Edward ‘Ted’ Snyder announced that he would step down in June of next year nd join the faculty after serving a total of 18 years as dean of three of the world’s most prestigious business schools.

Before becoming dean of Yale in July 2011, Snyder had been dean of the University of Chicago’s Booth School of Business for nine years from 2001 to 2011. He came to Booth after serving as dean of the University of Virginia’s Darden School of Business for three years from 1998 to 2001.

The unexpected announcement comes on top of four concurrent searches for major deanships in the U.S. 

- Northwestern University, Cornell University, UC-Berkeley and UCLA are all searching for new leaders for their prestigious business schools. 

Anjani Jain, a former Wharton professor and administrator who is currently acting dean, and David Bach, a former IE Business School professor and administrator, who is deputy dean are two leading candidates to succeed Snyder. 

Major Accomplishments At Yale SOM
  1. Substantially boosted influence, visibility, and recognition of school reflected in improved rankings
  2. Conceived and built the Global Network for Advanced Management (GNAM), a network of 31 top business schools on six continents
  3. Conceived and introduced a one-year, post-MBA Master of Advanced Management degree for students from GNAM member schools
  4. Introduced a Master of Management Studies, a one-year degree program with multiple tracks of study
  5. Introduced a Global Studies Requirement and Global Studies Accounts for all MBA and MAM students, along with a new leadership curriculum
  6. Built out SOM’s entrepreneurship program, appointing inaugural director of Entrepreneurship Programs
  7. Led a substantial increase in scholarship support for students
  8. Launched school-wide initiatives on Asset Management, Healthcare, and Sustainability
  9. Increased levels of alumni involvement, with the highest percentage of annual giving by alumni of any Yale academic unit
  10. Six consecutive years of operating surpluses (FY2012-FY2017)
Synder also reeled in the largest gift to any business school ever–$300 million—nearly doubling the school’s endowed professorships, tripling scholarship assistance, and increasing the school’s endowment from $197 million to $475 million, not including the impact of David Booth’s gift. Under him, Chicago Booth moved from 10th in the Businessweek rankings to 1st and held onto its No. 1 status for eight years. The Economist also ranked Booth at the top of its list twice during his tenure. No less impressive, Booth ranked in the top 10 in 74 of 78 rankings during his deanship.

Tuesday, March 6, 2018

フィナンシャル・タイムズ (FT) Top MBAs for Women

For the first time, the FT has ranked MBA programmes based on the outcomes of their female graduates.

This ranking has 
  • 11 different criteria and alumni responses inform eight of these, contributing to 70% of the full weight. 
  • 30% of the ranking is based on data reported by the schools.
  • Pay discrepancy is published as the average female salary as a proportion of average male salary, where 100% means equal pay. But the full score also takes into account salary increase to capture whether the gender pay gap widened or narrowed after the MBA.
  • The gap varies by school, but the average gender pay gap for graduates of the best MBAs for women is 88%. 

Gender diversity scores are calculated slightly differently than for the Global MBA ranking as a maximum score is not awarded for schools with a 50/50 distribution of men and women. This is to take into account that some schools are better at attracting female students, faculty and board members.

To be eligible for this ranking schools had to have a minimum number of female respondents, and 58 schools that participated in the global MBA ranking made the cut. Several programmes that ranked highly in the Global MBA ranking do not appear on the Top MBA for women ranking, because not enough of their female graduates responded to the FT survey.

To read more about the data collection process and the other criteria, read the methodology for the Global MBA ranking here.

Key for the table:
  • Weights for ranking criteria are shown in brackets as a percentage of the overall ranking.
  • Global MBA rank: the place at which the school ranked in the 2018 Global MBA ranking. This figure is not used in the ranking.
  • Salary today (15): average female alumnus salary three years after graduation, US$ PPP equivalent, with adjustment for variations between sectors.
  • Salary increase (15): average difference in female alumni salary from before the MBA to now. Half of this figure is calculated according to the absolute salary increase and half according to the percentage increase relative to pre-MBA salary.
  • Gender pay gap (15): average female salary as a proportion of average male salary. Half of this score is calculated using salary today and half using salary increase relative to pre-MBA salary. A higher average female salary does not result in a higher score.
  • Female students (15): percentage of female students on the full-time MBA.
  • Female faculty (10): percentage of female faculty.
  • Women on board (5): percentage of female members on the school’s advisory board.
  • International mobility (6): based on female alumni citizenship and the countries where they worked before their MBA, on graduation and three years after.
  • Value for money (5): calculated using salary today, course length, fees and other costs, including lost income incurred by female graduates during the MBA.
  • Career progress (5): calculated according to changes in the level of seniority and the size of company female alumni work in now, compared with before their MBA.
  • Aims achieved (5): the extent to which female alumni fulfilled their stated goals or reasons for doing an MBA.
  • Careers service (4): effectiveness of the school careers service in terms of career counseling, personal development, networking events, internship search and recruitment, as rated by their female alumni.

MBA worsens average gender pay gap for women, FT research finds

Analysis of data from an FT ranking of the best MBA programmes for women found that they earned, on average, 9% less than men before their studies. Three years after graduation, the gap had widened to 14%.

Pressure to increase the number of women in higher education means many business schools have upped their efforts to attract female students.

At the same time, there is a growing awareness of the gender pay gap. In the UK, new laws mean employers with more than 250 staff must this year for the first time report the gap.

The FT ranking also highlights gender pay differences for MBAs in different parts of the world. Women at business schools in China have a lower average salary gap after graduation, while in the UK, it widens from 9 to 26%.

More information can be found at the FT 

Sunday, March 4, 2018

フィナンシャル・タイムズ (FT) Top Online MBA programs

ウォーリックビジネススクール #1 FT Online MBA Program

After four years in second place, Warwick Business School topped the 2018 FT ranking of the best online MBA programmes for the first time. 

Spain’s IE Business School, which had dominated this ranking since the inaugural edition in 2014, falls one place to second and Isenberg School of Management in Massachusetts remains in third place.

The 20 ranked MBAs are assessed primarily on the career progress of alumni and also by the diversity of the cohort and the quality of online delivery. The main criteria for career progress are alumni salary three years after graduation and their salary increase compared with pre-MBA levels.

The average salary of alumni from FT-ranked online MBAs generally matches that of their counterparts from the FT’s top 100 full-time MBAs. 

The online class of 2014 receive an average salary of $147,000, slightly higher than the $146,000 for full-time students. The classes of 2013 had salaries of $140,000 and $142,000 respectively.

However, there is a contrast between the salary increases seen by alumni of the different degrees. Online graduates had an average salary rise of about 32 percent, significantly below the 107 percent enjoyed by the campus alumni. They have reached similar salaries but at different stages of their careers. The online MBA graduates are now about 40 years old on average — six years older than their full-time equivalents — and their salary was about 60 per cent higher at enrolment for their course.

Alumni from Warwick had the biggest year-on-year salary increase, up $13,000 compared with the previous cohort, to $183,000. This is the second highest salary, just below that of IE’s alumni at $184,000, which is down $7,000 on last year.

Warwick is ranked top for career progress and joint number one with Indiana’s Kelley School of Business for research. It is also third in the aims achieved category, fourth for value for money and fifth for its careers service.

The UK school has the largest enrolment in the ranking, with nearly 1,300 students. It also has 850 overseas students, by far the largest number, from 106 different countries.

While online MBAs were predicted to attract large numbers of foreign students, most schools enrol a low proportion. In the 2018 ranking, half of the 14 US-based MBAs are delivered entirely online, yet between them have 4 per cent of international students.

All four European schools include face-to-face elements in their courses but more than 50 per cent of students are from overseas. For the class of 2014 — the most recent data available — 70 per cent of foreign students at European schools were from outside the EU.

Key to the FT Online MBA Rankings 2018
(Weighting % in brackets)
  1. Salary today US$ (20): average alumnus salary three years after graduation, $ PPP equivalent (See methodology). 
  2. Salary increase (10): percentage increase in alumnus salary in the current job versus three years ago on graduation.
  3. Value for money (3): calculated according to alumni’s salary, fees and other costs. †
  4. Career progress (4): progression in the alumni’s level of seniority and the size of company they now work for, versus three years ago on graduation. †
  5. Aims achieved (4): the extent to which alumni fulfilled their goals for taking an online MBA. †
  6. Careers service (4): effectiveness of the school careers service in terms of career counselling, personal development, networking events and recruitment, as rated by their alumni. †
  7. Programme delivery (5): how alumni rate the online delivery of live teaching sessions, other teaching materials and online exams. †
  8. Online interaction (10): how alumni rate the interaction between students, teamwork and the availability of faculty. †
  9. Female faculty (2): percentage of female members of faculty.
  10. Female students (2): percentage of female students on the MBA programme.
  11. Women on board (1): percentage of female members of the school advisory board.
  12. International faculty (4): percentage of faculty whose citizenship differs from their country of employment.
  13. International students (4): percentage of current students whose citizenship differs from the country the school is located in.
  14. International board (2): percentage of the board whose citizenship differs from the country in which the business school is situated.
  15. International mobility (5): based on alumni citizenship and the countries where they worked before their MBA, on graduation and three years after. †
  16. Faculty with doctorates (5): percentage of full-time faculty with a doctoral degree.
  17. PhD graduates (5): number of doctoral graduates from each business school during the past three years. The figure in brackets is the number of these who took up faculty positions at a top 50 full-time MBA school.
  18. FT research rank (1: calculated according to the number of articles published by a school’s current full-time faculty members in 50 academic and practitioner journals between January 2015 and December 2017. The rank combines the absolute number of publications with the number weighted relative to the faculty’s size.
  19. For the three gender-related criteria, schools that have 50:50 (male: female) composition receive the highest score.

For more information see the Financial Times

Thursday, March 1, 2018

Highest & Lowest GMAT Scores At The Top 25 Schools

According to GMAC, the Graduate Management Admission Council, which administers hundreds of thousands of GMAT tests every year, over the last three years the mean score on the test was 556.04. In 767,833 tests taken between 2015 and 2017, no one scored lower than 220.

If you get a low GMAT score, it will make your application harder.
  • However 11 of the top 25 schools admitted someone with a GMAT score in the 500s, including four of the top 10 schools. 
  • At four schools in the top 25, the lowest GMAT score that earned admission was lower than GMAC’s three-year average of 556.
  • Of the 20 schools full range of GMAT scores for enrollees in the Class of 2019 (the other five schools provided only the middle 80% range), 13 had low-end scores of 600 or less. That includes the elite of the elite: the Wharton School at the University of Pennsylvania (530), Harvard Business School (580), Northwestern University Kellogg School of Management (600), MIT Sloan School of Management (580), and Columbia Business School (530). The average low score for the 20 schools: 586.5. The average low for the top 10 (all of which provided full-range data): 595.
  • 510 was the lowest GMAT score that worked at a top-25 institution; for Duke University’s Fuqua School of Business. 

As one Duke communications person put it to P&Q — in a sentiment echoed by admissions directors at multiple schools — “our admissions team has long had a commitment to looking at a candidate holistically, beyond a test score alone.” Russ Morgan, senior associate dean for full-time programs at Duke Fuqua, explains that the school approaches test scores as just one element in a person’s overall candidacy. Another, he says, is the school’s “25 Random Things” essay question that asks applicants to share a list of personal facts.

  • In the fall 2017 intake, three schools in the top 25 admitted applicants with low scores of 530 — the Wharton School, Columbia, and Indiana University Kelley School of Business. 
  • Another six schools said yes to applicants with scores of 580 (HBS, MIT Sloan, NYU Stern School of Business) or 590 (Cornell University Johnson Graduate School of Management, University of Texas-Austin McCombs School of Business, Georgetown University McDonough School of Business). 

  • The high scores in each school’s range continue to be 780-790 for all of the top 10 schools and 16 of the 20 that provided data
  • Average GMAT scores continue to climb, led by Stanford Graduate School of Business’ at  737. 
  • The top 19 schools saw improvement in their scores year-over-year or no change between 2016 and 2017; you have to go all the way down to Emory University’s Goizueta Business School at No. 20 to find a backslide, in this case a 1-point drop from 683 to 682. 
  • Only one other school had a decrease in mean GMAT scores: No. 24 Notre Dame University’s Mendoza College of Business, which saw a 9-point decline to 674 from 683. Six schools, including pace-setter Stanford, saw no change; the average increase at the 17 others was 4.88 points (heavily weighed by a 21-point jump to 711 at Rice Jones).