UPDATE: This article was originally posted on April 10, 2019. It has been updated with new information and tips below. 

Last week, I was working on interview prep with our client Guilherme. Selected for both elite US and European schools, he interrupted our practice to ask, “If I get into all these schools, I’m really lost on which to choose, since in some rankings one school is ranked very high, and in another, it’s not even in the top 10. Why are the MBA rankings all so different?”

Though rankings are incredibly important both for applicants and for programs themselves, they can be confusing as they vary widely. IESE Business School, for example, ranks 6th worldwide in the Economist’s 2018 rankings, whereas the US News ranking doesn’t list a single European business school in its top 20. 

It comes as little surprise, then, that it can be incredibly challenging to understand how “good” a school is and determine if the program is worth the significant investment you plan to make to take your career to the next level. 

That’s why we’re decoding MBA rankings in this post, sharing our best insights to help you understand not only how to navigate the complex world of MBA rankings, but also to make sure you have the best information at your disposal when deciding which business schools to attend. 

 

Where Rankings Come From

Though it’s hard to imagine a world in which MBA rankings don’t dominate the business school landscape, ranking schools is a relatively recent practice. 

The practice of ranking schools, in general, started when the US News and World Report decided to release its list of the best undergraduate programs in the United States in 1983.

Source: CNBC on YouTube 

The practice spread to business schools in 1988 when Bloomberg Businessweek published the first ranking of MBA programs as a way to increase the publication’s readership. 

Since then, numerous other publications, including the Financial Times, US News and World Report, and the Economist, have gotten into the rankings game, releasing their own annual list of the world’s top business schools. More recently, lists of best business schools by specialization have started to become popular, such as the “best MBAs for finance.”

Since rankings were first created, the attention given to them has only increased, as the methodology behind them has become more rigorous and top business schools compete to attract the world’s best young professionals to their programs. 

 

Why Rankings Vary So Much

When taking a look below at two of the leading MBA rankings, it can be a little perplexing to understand the differences when it comes to their “Top 5 Business Schools” in 2021.

Courtesy of US News and World Report

 Courtesy of Financial Times

While Chicago Booth did make the top 5 on both lists, the Financial Times’ ranking includes 3 international schools, while the US News list features only US-based schools. 

One of the greatest reasons for these types of differences comes down to how each school calculates rankings. 

US News rates schools on three key indicators, outlined below:

1. Quality Assessment, further broken down into:
   1. Peer assessment score
   2. Recruiter assessment score
2. Placement Success, further broken down into: 
   1. Mean starting salary and bonus
   2. Employment rates for full-time MBA program graduates
3. Student Selectivity, further broken down into: 
   1. Mean GMAT and GRE scores
   2. Mean undergraduate GPA
   3. Acceptance rate

On the other hand, the Financial Times (FT) rates schools on 20 different criteria. The main considerations include alumni responses (including average income), school data (including diversity of staff and international reach), research rank (based on the number of articles published by faculty in recognized journals), and corporate social responsibility (based on the proportion of teaching hours dedicated to CSR). 

Critically, the FT ranking places heavy emphasis on a school’s international offerings and does not consider average GMAT scores or acceptance rates. 

As such, when it comes to MBA rankings, you can’t simply look at the numbers. Instead, to understand which rankings best reflect your needs and goals, dig a little bit deeper and consider how each ranking evaluates schools to determine if you and that particular ranking agree on what makes an MBA program “good.” 

If you’re still a bit unsure about how your dream school stacks up against the competition, there are still other metrics you can use to reach an answer. First, you can check out the Poets & Quants MBA Rankings. We often direct candidates towards this list, as it synthesizes all the rankings and comes up with a more global position for each school. 

Second, you can examine additional factors that may not be included in the rankings to determine if a particular school is a good investment for you. 

 

How to determine which schools are right for you

Though MBA rankings certainly offer an important means by which to evaluate MBA programs, they don’t always tell the whole story nor indicate how well a certain program is suited to help you reach your personal and professional development goals. 

For example, perhaps receiving a scholarship is essential to ensure you’re able to attend an MBA. Or maybe you’re committed to changing your career to tech and want to make sure you attend a program that will help you learn the skills you need. Or perhaps a strong alumni network in your region is of paramount importance to you. 

As such, we suggest taking time to do your research so you decide to apply only to the best schools for you. We’ve compiled a list of many factors you should consider when deciding between multiple MBA programs here to help guide this process. 

 

Why rankings matter for your future

We often advise our clients to attend the highest-ranked business school they are admitted into, as more prestigious schools often offer greater career benefits than lower-ranked MBAs.

Furthermore, many sponsorship programs are limited to top-ranked schools. 

On the other hand, since certain schools have different reputations depending on the circle or career path you’re in, it’s important to consider your objectives – are you looking for recognition in a certain field, or are you mainly looking for a pay increase, for example? It’s good, therefore, to test-drive certain schools’ brands in the industry and region you intend to pursue after the MBA. 

For example, one of our former clients, Andre, needed to make a tough choice between offers from Yale SOM and Northwestern Kellogg. He was certain he wanted to return to the company he worked for (a Latin American investment bank) and was relatively close with the company’s CEO and Chairman of the Board. One day over lunch, he laid his options on the table and asked for advice. 

The results shocked him. 

Though Kellogg ranks higher than Yale in most MBA rankings, these two very influential people in Andre’s company (and career plans) were much more impressed with Yale’s ivy league reputation and strongly encouraged him to attend that school. As these would be the people who were ultimately responsible for his future promotions, he decided to attend Yale. 

This kind of disparity may not translate to your industry or region, but it is a good idea to understand how strong a school’s brand is with the people who matter in your future.

 

Get an expert’s Insights

Sometimes, having an expert–or experts–weigh in makes all the difference.

In general, skilled MBA consultants can be a great resource in helping you understand the differences among business schools. Knowing what schools offer beyond the rankings and what kinds of candidates “fit” certain programs is at the core of our work. 

That’s why here at Ellin Lolis Consulting, we are so focused on offering a personal touch that ensures each of our clients is happy with his/her MBA decisions and outcomes for years to come. 

We know an MBA is not simply a gamble, it’s an investment in your future. Our commitment is to get you the best possible results and help you take your career and life to the next level.

So whether you’re struggling to decide which school to attend or are just starting the MBA process, learn more about working with us and how we can make our hands-on approach work for your maximum success.