Business Schools Opting Out of Rankings Due to Pandemic

The Economist just published its latest MBA ranking, which Poets & Quants deemed, “the strangest list of the best business schools ever to be published.” European business schools IESE and HEC topped this year’s list, jumping up from their 2019 ranks of 10 and 3 respectively; however, 15 of the previously top 25 ranked schools declined to participate in this year’s ranking. In total, 49 out of the 165 schools invited to submit data either declined or were deemed ineligible and another 13 opted not to send the associated survey to their students or alumni. Among the 62 were some of the world’s most prestigious programs including Harvard, Stanford, Wharton, INSEAD, London Business School, CEIBS, Cornell, Dartmouth, and Duke.

The Economist’s resulting top ten, comprised of five U.S. and five European programs, included both expected and unexpected schools. The U.S. schools named in the top ten were Michigan Ross ranked third (up six spots from 2019), NYU Stern ranked fourth (+13), Georgia Tech Scheller ranked fifth (+18), University of Washington Foster ranked eighth (+12), and Carnegie Mellon Tepper ranked tenth (+22).  Most of the returning schools that opted into this year’s ranking saw significant positive momentum: 85 percent of schools that participated in 2019 and 2021 saw double-digit improvements in their rankings. Additionally, 41 of the top 50 (excluding two first-time participants) saw their rank increase by at least ten spots, and 24 of those improved by 20 spots or more.

The ranking, which was published despite GMAC’s request to the media to take a hiatus during the pandemic, comes during a tumultuous time for business schools worldwide. The logistical and economic effects of COVID-19 have impacted data typically included in ranking algorithms. Correspondingly, only 28 percent of business schools plan to participate in all MBA rankings this year according to Kaplan survey results published last week. The Kaplan survey, taken in October, asked admissions officers from 90 U.S. business schools, including 14 of the top 50 programs (ranked by U.S. News & World Report), about their plans to participate in rankings this academic year. While just 10 percent responded that they did not plan to participate in any MBA rankings, almost two-thirds (62 percent) said that they only planned to participate in some rankings.

Brian Carlidge, Vice President of Admissions at Kaplan, interpreted the results, saying that, “The majority of business schools have made their admissions processes more flexible, including making the GMAT or GRE optional, so many schools are lacking in test score data this year. Another major data point that goes into the rankings is job placement rate, and with the economy struggling as it is, it’s likely that it wasn’t as easy for Class of 2020 graduates to find employment as it was for Class of 2019 graduates. While many business schools are still reporting this data point for transparency, it’s also likely that others are reluctant to publicize it… With so much tumult, it’s hard to get a clear picture of where each business school lands. With so many top MBA programs not participating this year, it may make the rankings released in 2021 feel much less potent and relevant for aspiring business school students than in years past.”

GMAC Asks Media to Delay Publishing Business School Rankings

Last month the Graduate Management Admissions Council (GMAC), along with several other business education organizations, requested that MBA ranking organizations postpone publishing rankings amidst the COVID-19 pandemic. The request, sent via letter to Bloomberg Businessweek, The Economist, Forbes, Financial Times, QS, and US News & World Report, asked for the delay on the grounds that business schools are working to meet the needs of their students and communities and need support rather than additional responsibilities during this period.

The letter also pointed out the pandemic’s likely effect on metrics, speculating that survey results from this period may do more to reveal current stress than a business school’s effectiveness, with graduating students, alumni, and companies who recruit MBA graduates all facing significant challenges of their own.

The request concluded with a call for dialogue between the ranking organizations and the business school community. GMAC hopes to work in partnership with business education industry groups (AACSB, EFMD, and MBA CSEA) and the ranking organizations to consider the short and long-term implications of COVID-19 on business school education, including student mobility restrictions, test center closures, corporations’ hiring plans, and the challenge ranking organizations face in updating metrics during this period that will accurately measure a business school’s effectiveness. For example, schools’ responses during the pandemic regarding their ability to innovate to meet the needs of their stakeholders may more accurately reflect their value to prospective students than previously relied upon metrics.

The response to the request has been mixed.

• Bloomberg Businessweek announced earlier this month that it would suspend its rankings. In addition to the request put forth by GMAC and schools, Bloomberg News Senior Editor Caleb Solomon added that it “felt inappropriate” to ask students, alumni, and recruiters to fill out a survey in an already overwhelming time. He also pointed out that the data collected would likely be overwhelmed by the pandemic and may not accurately show differences between schools.

• Forbes, which publishes a biennial ranking of business schools, ranked the programs in 2019 and is not due to have another ranking published until 2021.

• The Economist and QS have not published statements on their intentions to publish MBA rankings this year. Typically, The Economist and QS publish their Global FT MBA rankings in the fall.

• The Financial Times, which produces the most influential business school ranking in Europe and Asia, published its Global MBA 2020 ranking in January, and just last week published its 2020 Global Executive Education MBA Ranking. Despite the pandemic and global uncertainty, their latest ranking shows change at the top, but it mostly consists of a reshuffling of established front-runner schools.

• The most highly anticipated response, however, is from U.S. News and World Report, whose business school ranking garners the most attention within the U.S. Their Chief Data Strategist, Bob Morse, told Poets & Quants that, “the team at U.S. News continues to monitor the unprecedented disruptions caused by COVID-19 to business schools themselves, and their current and prospective students. As a result, we’re still reviewing our strategies for our upcoming Full-time and Part-time Best Business Schools rankings, as well as our fall 2020 data collection.”

While it remains to be seen how each ranking organization will move forward with compiling and publishing rankings, the GMAC letter provides valuable input for prospective business school students to keep in mind when reviewing available rankings and considering schools for the upcoming year.

• While most surveys combine more than one year of data, to smooth sudden changes, carefully consider if a school of interest has dropped or risen suddenly to determine what metrics may be driving the change. Are certain metrics likely affected by the pandemic and likely to rebound? Or do you think they accurately reflect the schools’ ability to meet the needs of its students?

• Look at each metric individually for a more complete view. Many of the ranking websites even allow you to sort schools based on the component metrics. You can then see how the schools rank based on what you are most interested in (quality of alumni network, starting salary, research opportunities, experience with faculty, etc.). This may also help you to understand what may be most affected by the lack of student mobility, testing cancellations, etc.

While the appeal of rankings is strong, we urge you to carefully consider how you can use them to find the best experience for you. Our advice has always been, and remains, to use them as only one component of your decision-making. During this period, more than ever, they should be a method to inform, but not drive your business school selection.