Role of Standardized Test Scores in MBA Admissions Evolves

During the 2020-2021 admissions season, many MBA programs introduced flexibility into their admissions process by waiving the GMAT/GRE requirement. And just last month, UVA’s Darden announced that it would extend its test-optional policy into the upcoming admissions cycle. The school’s current policy allows for students to submit GMAT/GRE or alternative test scores (including the LSAT, MCAT, or Executive Assessment). But students also have the option to request a waiver based on a provided alternative indicator of academic, personal, or professional achievement, which could include previous ACT/SAT scores.

Last year, Darden received around 1,300 waiver requests and admitted approximately 13 percent of the incoming class via test waiver. School representatives believe that the policy created a more equitable standard for admission while also “attracting a more diverse group of candidates.” Darden’s head of admissions, Dawna Clarke, also noted that Darden is employing data analytics to better understand student success and inform future policy decisions. Describing early results from Darden’s internal analysis on factors that are predictive of success in the first-year MBA curriculum, Clarke said, “Surprisingly, we found the verbal GMAT correlated more than the quant GMAT. The GPA correlated more than the GMAT. We found a correlation between SAT and ACT scores. And we found a correlation even with the interview. The interview was predictive of academic success… We are currently doing analytics for the first-year class to see how those people who opted to submit an alternative test or none at all are doing and that will help drive our policies.”

While it remains to be seen how other schools will address the GMAT/GRE requirement, the Wall Street Journal recently published an article describing a parallel decline in the role of standardized test scores in post-MBA recruiting. Historically, top consulting firms, McKinsey, Boston Consulting Group, and Bain, as well as reputable investment banks were thought to rely on the test scores as a filter for job applicants. This is changing. “I don’t mind one bit that campuses are waiving the GMAT requirement,” says Keith Bevans, a partner who leads recruiting at Bain, “Business schools are admitting a much broader range of talent, and I expect to find strong candidates this fall in places I wouldn’t normally see them.” He notes that while Bain still collects standardized test scores, they are not held against prospective employees, but rather incorporated into an internal analysis, which has found that higher scores do not always equate to higher productivity at Bain. Similarly, Danielle Bozarth, the lead partner for North America recruiting at McKinsey, also points out that MBA programs’ deprioritizing of test scores, “is aligned with our recruiting approach that [tests] are one of many ways to help assess a person’s skills or knowledge. We look for people who are good problem-solvers,” of which, she points out, there are many indicators.

While the role of standardized test scores is changing, prospective and current MBA students should carefully consider the entirety of their resume before determining whether to submit, or omit standardized test scores. We recommend thinking through the following questions:

• Are you a particularly strong, or weak, standardized test taker? Providing MBA programs and future employers with high scores on the GRE/GMAT will be beneficial even if they are considered a small component of your larger story.

• Do you feel that your GPA and academic credentials adequately reflect your capabilities as a student? If you have a weak GPA or other “soft” academic credentials on your resume, you may want to bolster these scores by taking the GMAT or GRE. This will give you the opportunity to showcase your ability to compete in a rigorous analytical and quantitative environment, and also prove your verbal competence.

• Does your resume include experiences that directly speak to your ability to critically assess complex situations under pressure and problem-solve? This could include success in case competitions, a role on the debate team, awarded scholarships or fellowships, and professional certifications, etc.

• Do you have any exceptional experiences that set you apart from other applicants by demonstrating a high level of skill, determination, and/or a commitment to success? For example: a role on a highly competitive sports team, a successful entrepreneurial venture, and/or documented professional success at a highly regarded company.

MBA Programs Seek to Increase Flexibility in Admissions Process

Earlier this month, Georgia Tech’s Scheller College of Business and the University of Maryland’s Smith School of Business announced that their full-time MBA programs would go test-optional for the 2020-2021 admission cycle. These two are the latest among a growing group of schools to waive standardized test requirements for eligible applicants. Like Northeastern University’s D’Amore-McKim School of Business, Georgia Tech’s Scheller plans to pilot the test-optional policy for all Fall 2021 applicants. The University of Maryland’s Smith School of Business is implementing a test waiver program where applicants who meet an existing set of criteria can opt out of providing standardized test scores. UVA Darden, University of Wisconsin-Madison’s School of Business, and Rutgers Business School have incorporated similar criteria-based waiver systems.

The schools point out that while they have used standardized test scores previously, to gauge an applicant’s ability to compete in the academic rigor of their program, they say their admissions teams remain confident in their holistic assessment of an applicant’s potential. UVA Darden is asking candidates who do not provide test scores to include alternative evidence that they will be able to succeed academically.

The schools hope that the policy will attract more applicants. After announcing its test-optional policy, UVA Darden reported receiving “an influx of qualified applicants who had been furloughed or laid off amid the pandemic.” Speaking to the Wall Street Journal, Blair Sanford, Assistant Dean for Full-Time MBA and Master’s Programs at Wisconsin-Madison said, “Some of the reasons why we decided to expand the policy in the first place still exist. The pandemic is still in place… In addition, it gives us a broader reach to attract qualified students in a difficult environment.”

The schools are also optimistic that the policy change will appeal to a more diverse swath of applicants, particularly those from a range of socioeconomic backgrounds. The costs of taking the standardized tests, including preparation, can be a barrier to otherwise well-qualified applicants. Maryam Alavi, Dean at Georgia Tech’s Scheller College of Business, in an interview with Poets & Quants said, “Beyond the complications COVID-19 has introduced in terms of access to exams, an overreliance on standardized test scores in MBA admissions decisions puts underrepresented minorities, individuals from lower socioeconomic backgrounds, and first-generation college graduates at a disadvantage. We move forward confident that the change in this year’s admission process will attract our most diverse, qualified, and successful MBA cohort yet.”

According to the Wall Street Journal, however, many of the elite schools remain hesitant to move completely away from standardized testing, though most have begun accepting the results from online GRE and GMAT testing. And a few top-tier schools including NYU’s Stern, Columbia University’s Business School, and most recently, Vanderbilt University’s Owen, have opted to accept the Executive Assessment (EA) test as an alternative to the GMAT/GRE for full-time MBA applicants. The EA, which is much shorter at 40 questions and 90 minutes compared to the four-hour GRE or GMAT, generally requires less intensive preparation than its longer counterparts.

It will be interesting to see how things evolve from here, even among elite schools. Michael Robinson, Associate Director of MBA Admissions at Columbia Business School, has expressed interest in following the methods and outcomes of elite undergraduate institutions that have gone test-optional. At an MBA roundtable over the summer, Robinson said, “So, for us in admissions, it’s not that we want to basically admit people with the highest test average. It’s more about whether this person can succeed academically in that class. There are ways to get the right answer to that question without a GRE or GMAT or executive assessment. So I’m really curious to see what’s happening there. We’ll see what that looks like.”