How to Approach the Harvard Business School Essay

Last week, the Harvard Business School posted the submission deadlines for applicants to the MBA Class of 2025, and confirmed the required essay. The essay prompt, consistent with last year, asks: “As we review your application, what more would you like us to know as we consider your candidacy for the Harvard Business School MBA program?” Although the application does not open until June, it’s never too early to start planning your narrative response. 

At HBS, as with other elite programs, the essay is a critical component of your application. Not only does it allow you to differentiate yourself among a large pool of highly-qualified applicants, but it provides an opportunity to show the character traits that Harvard values. HBS puts a strong emphasis on character and service, with a longstanding mission “to educate leaders who make a difference in the world.” The program also expressly calls out community values including, “trust and mutual respect, free expression and inquiry, and a commitment to truth, excellence, and lifelong learning.” Dean Srikant Datar describes one of his aspirations for the school as “...stretching HBS and its learners beyond notions of merely personal success toward becoming, collectively and individually, driving forces in redefining the role of business in society around the world—addressing inequality, exclusion, climate change, and other intractable problems.” 

Begin with a Brainstorm. Do not underestimate the importance of this step. Document your experiences, positive and negative, that prompted an evolution in your perspective—you know, those “ah-ha!” moments without which you would be a different student, professional, and/or person today. Then, record those experiences that will show the reader your abilities in innovation (critical/creative thinking and problem solving), leadership, and teamwork, as well as those experiences that reinforced your interest in an MBA program. Capture as many details as possible, paying particular attention to what you thought, felt, said, and did in each situation. Your focus should be on adult experiences (from the start of college and later), though stories from your youth could comprise up to 20 percent of this brainstorm.

During your brainstorm, don’t limit yourself by worrying about a cohesive narrative, the quality of your writing, or the number/length of your stories. Simply focus on collecting those situations that helped to guide your path to this point and impacted your decision to apply to the Harvard MBA program.

Once you have these thoughts on paper, look again at all of your experiences. Start to think about the story you want to tell, and also how you can use your experiences to best position yourself with the admissions committee. 

The Outline. As you start to consider how you will anchor and organize your essay, you’ll want to think about your application as a whole—MBA Admissions committees are looking for you to demonstrate MBA-readiness with high potential in the areas of innovation, leadership, and teamwork—so you can use your essay strategically to show those qualities that may not be covered in your other materials. For example, if you have a perfect score on the analytical section of your GMAT and fantastic work experience in an analytical career on your resume, you may wish to use your essay to take the reader on a deep dive into your most meaningful leadership and/or community engagement experience. 

Create a draft. Now, it is time to start writing. While there is no limitation on length, we recommend that you target about 1300 to 1500 words. Keep in mind that you must be showing, not telling the reader who you are. Invite the reader into your life by highlighting sensory details, such as smells and sounds, and don’t hesitate to engage your readers emotionally. Sprinkle in humor (if you feel comfortable doing so) or hit a poignant note. In contrast to your resume which provides a general overview of your experiences, your essay responses should go deep into a story that allows the reader to come to their own conclusions about some of your character traits and abilities. Highlight how you’ve struggled, triumphed, learned, and how these experiences have developed you into the person you are now.   

And don’t forget that the essay is part memoir, part strategic communication. Amidst your reflections, don’t neglect to make it clear why a Harvard MBA is your next step. The question is asking about you (rather than “Why Harvard?”), but you’ll want to write it so that the reader finishes with a clear understanding of why a Harvard MBA is the next logical step. 

Review. Revise. Repeat. Read your essay aloud noting where you stumble. Make revisions as necessary. Once it reads smoothly, set it down and walk away for at least 24 hours. Then re-read it. Is it you? Is it personal and authentic? You want the reader to see the real person behind the applicant number. While we caution against “oversharing,” being appropriately vulnerable will create connection.  

Related blogs:

• Harvard Business School Sets a New Agenda Focused on Positioning Business to Solve Society’s Biggest Challenges

• How to Approach Columbia’s Essays: Part I

• How to Approach Columbia’s Essays: Part II

• How to Approach Wharton’s Essays

• How to Approach the MIT Sloan Essays

• Your MBA Application. Acing the Video Essay

MBA Programs Increasing Use of Virtual and Tech-Enabled Recruiting Processes

The MBA Career Services and Employer Alliance (CSEA) recently shared the results of its 2021 Fall Recruiting Trends Survey. The findings show that recruiting is bouncing back to pre-pandemic levels for full-time MBA students, particularly within the consulting, technology, healthcare, and financial services industries. But certain pandemic trends may be here to stay. The findings highlight the continued relevance of virtual engagement opportunities between students, career services, and employee recruiters. 

The survey includes responses from 77 CSEA member schools, who completed the survey in January of 2022. 

Among full-time MBA programs, just over two-thirds of schools (35 percent) report that on-campus recruiting opportunities for MBA students, which includes in-person or virtual interviews organized through the school, are up this academic year compared to last. Just 27 percent report that opportunities are down, a sharp decline from 47 percent in 2020. Similarly, the majority of schools (74 percent) report that off-campus recruiting and job postings have increased in 2021. 

Most schools report increases in recruiting activities for full-time post-MBA employment within the consulting (84 percent), technology (82 percent), and healthcare (69 percent) industries. Schools continued to see decreased recruiting activity within the hospitality sector (33 percent), although the number of schools that experienced these decreases was smaller in 2021 than in 2020 (61 percent). Most schools’ recruiting activity, 76 percent, increased among large firms (more than 500 employees), and 63 percent saw increases in recruiting by mid-size firms (100-500 employees). The survey results note that, in previous years, schools were most likely to indicate recruiting increases by firms not headquartered within the school’s geographic region, which in 2021 was the third-largest increase (63 percent). 

In the survey, schools were also asked how student engagement with various career support activities compared to the prior year. The biggest increases were with one-on-one coaching appointments (50 percent of schools), virtual career fair participation (48 percent), and group coaching sessions (47 percent). Conversely, student engagement decreased the most among in-person career fair participation (58 percent of schools), on-campus interviewing (49 percent), and information session attendance (42 percent). 

Fall 2021 also brought changes in students’ interactions with recruiting activities. Most schools report that employers’ use of virtual interview technologies increased (90 percent), as did the use of AI-powered pre-interview screening tools (75 percent). A large number of schools, 68 percent, indicate an increasing use of virtual multi-school events. Schools also note growth in alumni-initiated hiring (62 percent), and virtual career fairs (61 percent). Conversely, almost two-thirds of schools report a decrease in student engagement with in-person career fairs (64 percent). 

Similar to the full-time employment recruiting trends, both off and on-campus opportunities for internship recruiting were more positive in 2021 than in 2020. Almost two-thirds of schools, 65 percent, report an increase in off-campus internship opportunities for full-time MBAs. And, over one-third, 36 percent, report that on-campus activities have increased, which compares favorably to the 16 percent of schools that reported increases in 2020. Again, similar to the full-time recruiting trends, most increases in internship recruiting were within the consulting (73 percent of schools) and technology (71 percent) industries. Financial services (60 percent) came in third. 

A large proportion of summer internships in 2021 remained in a virtual format. More than half of schools (56 percent) report that over 60 percent of their students’ 2021 summer internships were virtual, whereas in 2020, over 83 percent of schools reported predominantly virtual internships.   

Find the full survey results here, including data on full-time and internship recruiting for part-time MBA and specialized masters programs. 

Post-Pandemic, Prospective MBA Students Express Greater Interest in Hybrid Learning and One-Year Full-Time MBA Programs

The Graduate Management Admissions Council (GMAC) recently released the 2022 results summary from its Prospective Students Survey. The survey, which was issued in 2021, garnered over 6,500 responses from prospective MBA students around the world. The resulting summary examines the shifting preferences of prospective students as a result of the COVID-19 pandemic and its impact on the delivery models of graduate management education. 

Below we provide a high-level summary of the findings. The full GMAC results summary is available here. 

While respondents do not feel that online and in-person formats provide the same value, there is growing interest in hybrid models. 

• Globally, respondents are still more likely to disagree that an online and an in-person graduate management degree offers the same level of opportunity in terms of networking (79 percent), value (73 percent), and career prospects (66 percent). But respondents are slightly less negative in 2021 than they were in 2020.   

• Globally, 20 percent of respondents in 2021 prefer a hybrid delivery model, an uptick from 14 percent in 2019. 

• Hybrid programs are particularly attractive to prospective students interested in an Executive MBA, Part-time MBA, or Flexible MBA, although interest in hybrid models increased significantly for all program types between 2019 and 2021.  

Consulting continues to top prospective students’ industry and job function preference lists, though interest in the technology industry continues to grow. 

• While both men and women express interest in consulting, men are more likely than women to select consulting as their industry (+8 percentage points) and job function (+9 percentage points) of choice. 

• Women are more likely than men to express interest in the marketing (+12 percentage points), media and communication (+9 percentage points), media/entertainment (+7 percentage points), and non-profit (+6 percentage points) industries.  

• Globally, interest in the technology industry increased three percentage points from 2019 to 39 percent in 2021. Among non-business undergraduate majors, technology is the most sought-after industry (49 percent). In 2021, a growing number of women expressed interest in technology compared to 2019 (+5 percentage points). 

• Prospective students most frequently list their post-degree career goals as: obtain a senior level position, get a raise/salary increase, obtain an executive level position, manage people, manage projects, and work for a company where they can travel internationally. 

• “Become the CEO of a company” provides a notable gender disparity within career goals. Globally, 31 percent of males list this as a career goal, while just 24 percent of females do. In general, U.S.-based respondents are less likely to name this as a goal (21 percent). 

• In 2021, the number of prospective students interested in changing industries or job functions (32 percent) returned to pre-pandemic levels after an uptick in 2020 (36 percent). Among U.S. respondents, a higher percentage are looking to make a career change (42 percent) which is, again, consistent with pre-pandemic levels (41 percent in 2019). 

International prospective students are more favorable on the use of standardized admissions tests.  

• Similar to pre-pandemic levels, about ten percent of prospective students say that having to take a standardized admissions test may deter them from applying. 

• About 60 percent of international students agree that standardized admissions tests improve fairness and reliability in evaluating applicants, and that they allow candidates to demonstrate academic readiness. Among U.S.-based prospective students, the number agreeing with those statements hovers closer to 50 percent. Similarly, while 63 percent of international respondents feel that standardized admissions tests increase transparency, just 55 percent of domestic respondents do. 

• While about half of respondents (52 percent) agree that test waivers make it easier to apply to a program, fewer agree that test waivers make it easier for applicants to gain admission (44 percent). 

• About 40 percent agree that the criteria to obtain a test waiver does not apply to a large proportion of applicants (43 percent) and the criteria to obtain a waiver is complex (40 percent). About one in five feel that schools should not offer test waivers for the 2021 admissions cycle. 

Profile of Recent MBA Alumni Shows a Shifting Student Base

The Financial Times has published its updated MBA alumni profile. Once again, it shows the ever-dynamic nature of the MBA degree and its student make-up. This year’s profile, in comparison with earlier alumni groups, showcases shifting demographics with greater percentages of alumni who are women, from the Asia-Pacific region, and fewer who went into banking. 

The profile uses data from the FT’s 2022 Global MBA rankings, which includes alumni from the top-100 ranked programs three years after graduation. We’ve listed the key insights below. 

• Reasons for Pursuing the MBA: Similar to the last two years, MBA alumni were most likely to name Personal Development and Management Development as their reasons for obtaining the degree. These two were followed by Improve Career Opportunities and Increase Salary as the third and fourth most highly-rated options. Falling to last place was Start Own Company, which most respondents rated at seven or below (out of ten) in importance. 

• Importance and Value of Courses. Alumni were asked to rate MBA courses in terms of importance and how well their alma mater teaches the subjects. Most alumni believe that General Management, Corporate Strategy, Entrepreneurship, and Finance are important and taught well. Alumni rated Organizational Behavior and Statistics/Quantitative Methods of average importance. However, they rated the performance of their schools higher for teaching Organizational Behavior than Statistics. Finally, Ethics and Environmental Issues and Fintech—two emerging topic areas for MBAs—were rated below average on both importance and performance. 

• Alumni demographics. Over time the makeup of the alumni profile has shifted significantly in terms of region of origin, gender, and post-MBA employment. 

  • In 2006, students from the US and Canada made up 50 percent of MBA alumni, however this proportion has declined steadily. Students from the Asia-Pacific region now make up the highest proportion at just under 40 percent. Students from the US and Canada fall next in line at just over 30 percent. 

  • While the percentage of women alumni held relatively steady at 33 percent between 2006 and 2014, it jumped significantly in 2022 with women now making up 40 percent of alumni three years post-graduation. 

  • The top sectors for post-MBA employment have also shifted over time. Declining steadily, finance/banking decreased from 31 percent of alumni in 2006 to 25 percent in 2014, and is down still further to 18 percent in 2022. The percentage of alumni in consulting has held relatively steady at 15 percent from 2006 to 2014, and has risen slightly to 17 percent in 2022. Not surprisingly, MBA alumni going into IT/Telecoms has increased over time, jumping from ten percent in 2006 to 14 percent in 2022. And, in 2022, e-commerce ranked among the top five employment sectors for the first time.

  • A demographic that has held relatively constant over time is age. The average alumni age, three years post-graduation, was 28 in 2006 and 2014, and increased slightly to 29 in 2022. 

• Since 2006, alumni salaries, both at graduation and three-years post-graduation, have increased by 28 percent. The FT notes that this is lower than the cumulative inflation rate of 37 percent over the same time period. In 2022, reported salaries for alumni three-years post-graduation are down compared to last year, which is the first time salaries have decreased year-over-year since 2014. 

Access the full alumni profile here. 

Growth Slowing for GRE in Business School Admissions

Applicants’ use of the GRE over the GMAT in MBA admissions continues to grow, but at a slower rate, according to a recent Poets & Quants analysis. For the past six admissions cycles (since 2016), GRE submissions have been increasing, while GMAT score submissions have been sinking significantly. The last two years, though, have shown a slowing in the GRE growth rate. The flexible test submission policies enacted in response to the pandemic have likely impacted the trend. 

GMAT testing volumes have declined annually since 2012, with the exception of 2016 when the numbers increased slightly compared to the year before. Last year’s GMAT testing volume decreased by 47.7 percent compared to 2018, the last pre-pandemic testing year. And the 2021 testing numbers totaled less than one-third of GMAT’s record-high numbers in 2012. 

Amidst this decline, the GRE testing volumes steadily increased. However, in the past couple of years, this growth has slowed significantly. Poets & Quants points out that, “For every Virginia Darden School of Business, which saw a 10-percentage-point increase in its GRE submissions from MBA applicants in 2021, there is an Indiana Kelley School of Business, which reported an 11-point year-to-year decline.” The analysis notes that in 2019, an average of 13.5 percent of applicants submitted GRE scores at the Poets & Quants-ranked top 25 business schools, but that number jumped to 27.8 percent in 2020. Within schools ranked in the top ten, the GRE submission averages all increased in 2020. Dartmouth’s Tuck led in GRE submissions at 39 percent, followed by Yale and UC-Berkeley at 35 percent. 

This year, within the top 25 schools (24 reported data), the average proportion of GRE submissions increased only slightly, from 27.8 percent to 28.5 percent. And, within the top ten, the average submissions decreased slightly from 28.1 percent in 2020 to 27.9 percent. Stanford, Columbia Business School, Dartmouth Tuck, Duke Fuqua, Michigan Ross, and NYU Stern all reported lower percentages of GRE submissions this year compared to last.

The longer-term trend from 2016 to 2021, though, actually paints a clearer picture of the GRE’s growing place in MBA admissions. Of the top 52 Poets & Quants-ranked MBA programs, 34 schools have increased in the percentage of GRE submissions over time, while just eight have decreased. None of the programs with decreases are ranked in the top 25. 

INSEAD Announces Immersive Virtual Reality Masterclass for Global Executive MBAs

INSEAD Business School just announced that it would be further incorporating virtual reality (VR) into the learning experience of Global Executive MBA students by offering an immersive, masterclass titled “Mission to Mars.” The simulation will refine students’ management skills and provide an opportunity to exercise decision making in situations filled with ambiguity. After the experience, students will debrief their experiences together. 

INSEAD’s announcement follows a study by PWC on the efficacy of virtual reality (VR) based training for soft skills development. The study compared results for three similar cohorts who received training via different delivery mechanisms: classroom, e-learn and v-learn (VR). The results showed that the VR learners were four times faster to learn than classroom learners, 275 percent more confident in applying the material, 3.75 times more connected to the material than classroom learners, and four times more focused than e-learners. 

Ithai Stern, the Academic Director for INSEAD’s VR Immersive Learning Initiative, has previously provided insights into the lessons INSEAD has learned from experiences with VR, in the classroom and remotely, as a learning tool for its MBA and Executive Education students. Similar to the findings of the PWC study, Stern has found VR to be highly effective, and also noted that the best ways incorporate VR are through individual study and case studies. 

“In INSEAD courses, a VR headset, which is responsive to real-time head movements, allows a unique experience for each participant within the framework of fixed content (e.g., a boardroom scenario, a factory tour, or a market). As a result, participants can think through a specific situation in a low-risk, controlled environment, testing decisions and assumptions without being judged by fellow participants—and without being unduly influenced by any higher-ups that may also be in attendance. To benefit the group as a whole, these individual virtual experiences are typically preceded and followed by in-depth shared discussion,” he wrote.

Stern also acknowledges the unique ability of VR to promote empathy within students by placing them into new contexts previously not possible. “For example, it's the first time in history where, when I teach directors, I can literally position the 50 plus white male in the classroom in the body of the only black woman on the board of directors,” he said.

Stern, however, does point out that while VR is an excellent supplement to the business school curriculum, it is not a replacement for the “knowledge, feedback, and guidance” that professors, and classroom discourse provides students after their VR simulations. Other business school leaders, interviewed by the Financial Times on the use of technology in business school, take a more cautious approach to the use of VR suggesting that while it could be useful to simulate a real-life situation, it may be less practical due to its individualized nature and the equipment demands. 

More MBAs Seek Investors to Fund their Search, Acquisition, and Management of an Existing Small Business

Last week, the Wall Street Journal highlighted a small but growing career trend among MBA graduates: seeking investors who will fund their search, acquisition and management of an existing small business. 

A Wharton Magazine article described this niche career path, “The model, at its core, involves working with a group of investors to locate, acquire, manage, and grow a privately held business. The “searcher” starts by raising funds from a group of investors and then spends two to three years looking for one special business to acquire and grow. After finding the right business, the searcher is expected to take on a management role at the company and relocate to the business’s headquarters. One of the key differences between the search fund model and traditional venture capital and private equity fund models is that the search fund model is focused on the business owner and is designed to provide a unique transition plan to take the business to the next level.”

Although search funds are not new to MBA graduates, according to the WSJ, they have grown during the pandemic as investors with access to capital are seeking more investment opportunities. In 2019, Stanford’s Graduate School of Business counted 51 new search funds. In 2020, preliminary numbers showed 70 funds. And estimates suggest that more were launched in 2021.  

Initially most searchers came from Harvard or Stanford, though today, a growing number of MBA programs are developing search related offerings and bringing in experienced professors from the industry. “Search is really taking off. It doesn’t get better than the search fund model. The average person who does this is 32 years old, a very young CEO,” said Jan Simon, an MBA professor teaching a search fund course at UC Berkeley  Haas,  In addition to Haas, courses on search funds are now available at IESE, Duke, Dartmouth, and Columbia to prepare students to raise money from investors, as well as to understand the many complexities of the location and acquisitions process. Additionally, MIT, Northwestern, and other universities regularly host clubs and networking events for search, which have garnered the interest and participation of hundreds of students. 

While searchers can accelerate their careers and avoid some of the startup pitfalls by acquiring an established business, this career path necessitates a high-risk tolerance. They forego the support of an MBA program’s career center, as well as the stability of a position within a larger company. And the WSJ notes that about a third of searches end without an acquisition. Prospective MBA students wishing to pursue search should ensure that they select a program that has a support infrastructure with professors, coursework, and a network to best set them up for success. 

Access the Stanford Graduate School of Business Search Fund Primer to learn more. 

US News Ranks Chicago Booth and UPenn Wharton as Best Business Schools

The US News and World Report published its 2023 Business School Rankings today with University of Chicago’s Booth and University of Pennsylvania’s Wharton taking the top spot, previously held by Stanford’s Graduate School of Business. Stanford fell to the third rank, which it shares with Northwestern University’s Kellogg. Generally, the top ten looks similar to last year, although there was some movement. Notably, University of Michigan’s Ross moved to the 10th spot from 13th last year, and Dartmouth’s Tuck and NYU’s Stern, who were tied at 10th last year, dropped to 11th and 12th respectively. NYU Stern shares the 12th ranking with Duke’s Fuqua. 

Find the complete 2023 Best Business Schools ranking.

Chicago’s Booth also took the top spot in the part-time MBA program rankings. As per usual, there was no movement within the top five ranked part-time programs, with each program retaining its rank from last year. In fact, the top five ranked part-time MBA programs have been consistent for the past four years of rankings. 

Find the complete 2023 Best Part-time MBA ranking.

Employers’ Need for Junior Employees Spurs Highly Competitive Summer Intern Market

The Wall Street Journal describes the current recruiting environment as one with unprecedented student leverage. Firms are scrambling to onboard junior employees. According to corporate recruiters, the offers are so plentiful, and many so generous, that they are seeing an increase in students reneging on previously accepted internship offers. Some employers say that they are boosting intern salaries to remain competitive. Others are increasing communications with students who have accepted offers to maintain the relationships. 

Private equity firms are expected to increase intern salaries again this summer. In 2021 the median monthly salary for private equity interns from Columbia, Harvard, and Stanford topped $11,000. This was a particularly notable spike for Columbia students who reported a 2019 median monthly salary of $9,000, and a solid uptick for Harvard and Stanford students who averaged just above $10,000 in 2019. The increases were likely due to pressure from investment banking and consulting firms, where interns made monthly median salaries in 2021 of $12,500 and $13,500, respectively. 

In addition to increasing compensation, private equity recruiters are updating their tactics in response to the competitive market. Ann Anastastia, Vice President of HR for the Americas and Greater China at Advent International, tells the Wall Street Journal, “I have been in private equity for over 15 years and in HR for over 25, and I have never seen anything like this recruiting climate.” She will start the MBA recruiting process much earlier this year, kicking off in the fall as opposed to January. Additionally, the WSJ article notes that private equity firms are promoting themselves more on campus, and engaging directly with students on topics including compensation, work-life balance, diversity, and career development. “In the past, private-equity firms haven’t needed to do that,” said Deirdre O’Donnell, Director of M.B.A. Career Services and Advising at Dartmouth’s Tuck School of Business. 

Financial Times Post-MBA Salary Analysis Shows Gender Pay Gap is Declining

A gender pay gap still exists for MBA graduates, but it appears to be shrinking. This is according to a recently released Financial Times analysis. Using data collected through the FT Global MBA Rankings, which collects salary and position information for MBA alumni three years post-graduation, the FT was able to analyze pay equity trends among graduates of ranked MBA programs. The findings indicate that the gender-based pay gap has generally been in decline, with some volatility, since 2007. 

The pay disparity among 2022 MBA alumni three-years post-graduation is eight percent. Men earn a median base salary of $137,000, and women earn $126,422. This compares favorably to the 16 percent pay gap for MBA alumni in 2007, which is the first year the gap started to decline more consistently. Moreover, for the 2022 alumni, the MBA played a role in decreasing the gender pay gap; among this group, the pre-MBA pay gap was ten percent, two percentage points higher than post-degree. Conversely, for 2006 MBA alumni the pre-MBA pay gap totaled 11 percent, and then increased to 16 percent post-MBA.

The Financial Times noted that the decrease in the pay gap can be attributed to women receiving higher base salaries in recent years. In fact, for four of the past seven years—2016, 2017, 2020 and 2021—female graduates have received larger salary increases than males. The analysis also points out that these four years are the only years between 2006 and 2022 that women MBA salaries increased more quickly than did men’s salaries. Generally, however, both male and female salaries are now increasing at similar rates. 

Other key findings include:

• On average, male MBA alumni have risen more quickly and to more senior positions than females every year since 2006.

• Male MBA graduates, in both 2007 and 2022, disproportionately pursued careers in higher-paying fields—finance, consulting, and technology—compared to female graduates. The proportion of women in consulting and technology roles, however, has increased between 2007 and 2022.

• Men and women report the same primary motivations for entering into MBA programs: career and management opportunities, and increased salary. This has remained consistent over time.

• The proportion of MBA alumni, men and women, who feel that they have achieved their goals is similar, particularly for career opportunities. But men are slightly more likely to say that they achieved an increased salary or secured a management role. 

“Big Three” Consulting Firms Announce Increase to MBA Starting Salaries

McKinsey, Bain & Co., and Boston Consulting Group have once again earned top billing in Vault’s 2022 “Best Consulting Firms.” Bain & Co. took the top spot with McKinsey scoring just .001 behind in second, and Boston Consulting Group dropped one notch to third. The ranking, which aggregates survey responses from over 17,000 consultants and 130 firms, creates a composite score based on 16 variables including compensation, diversity, work-life balance, job satisfaction, and prestige, among others. 

Bain scored within the top five across all 16 components, including top scores for informal training and relationships with supervisors. McKinsey and Boston Consulting Group received 15 scores within the top five. McKinsey earned top billing for innovation, internal mobility, selectivity, and international opportunities, while Boston Consulting Group received the top rank for firm leadership, overall business outlook, health and wellness, promotion policies, as well as compensation and benefits. 

In even better news for prospective and current MBA students interested in pursuing a career in consulting, the big three also just announced that starting salaries for MBA hires will increase in 2022 by $10,000. This will bring the starting salary up to $175,000 and total compensation packages up by between four and nine percent. In addition, McKinsey recently announced that it will hire its largest summer internship class to date. The firm, which is expanding geographically and functionally, expects to recruit 800 interns, which will include a large number of first-year MBA students.

So, from which schools will they likely recruit? A recent Poets & Quants analysis explored the “feeder schools” for each of these companies, using data from the Wall Street Oasis 2022 Consulting Industry report. For McKinsey, the top feeder schools are University of Toronto, Northwestern, Harvard, University of Michigan, Dartmouth, and Georgia Tech. For Bain—UT Austin, UVA, Harvard, University of Michigan, and Duke. And for Boston Consulting Group—the University of Pennsylvania is by far the largest feeder school, followed by Yale, MIT, and the London School of Economics. 

Trends in Business: MBA Programs Prepare Students for Leadership Roles in Technology

Technology is changing. And so are the demands of the leaders and professionals in the field. Recently, zdnet, a technology-focused news and research site, published an article describing the changing demands of leaders and employees in technology. No longer, the article states, is technical proficiency enough. Technology can no longer exist as a stand-alone function, but must be thoroughly integrated into the business. And tech practitioners must be able to take a broader perspective that includes a thorough understanding of other business functions and how technology fits in amongst them to drive the organization’s mission. “It's important to start to learn about finance, business processes, and other strategies that make up how your product or solution comes full-cycle for your organization," said Nag Vaidyanathan, Chief Technology Officer at Duck Creek Technologies. "How you collaborate with other functions is critical to the results you can achieve." 

Haluk Saker, a Senior Vice President at Booz Allen Hamilton, notes that the speed of technological change is such that professionals and managers need, "…problem-solving skills versus language-specific skills. IT professionals should focus on learning, disrupting the status quo, and continuing to gain skills across different domains that interest them. This type of professional, with an innate curiosity and an aptitude to grow as a leader and influencer, is the one that will be able to face tomorrow's toughest challenges head-on," he said.

MBA programs are at the forefront of understanding transformation in the technology industry and a number of leading schools (noted below) now offer shorter, and more focused Tech MBA programs. They include core requirements in technology, in addition to typical MBA requirements in general management and leadership. 

• Johnson Cornell Tech MBA: This is a one-year MBA conferred by the Johnson Graduate School of Management. Graduates will have a full understanding of the startup and tech ecosystems, and will be prepared to manage product teams, and lead tech companies.

• NYU Stern Andre Koo Tech MBA: This is a one-year STEM-designated MBA program conferred by NYU Stern. Graduates will be qualified to join startups and mature tech companies at the forefront of innovation and technology, and will be prepared to accelerate their careers in technology or start their own businesses. 

• Northwestern Kellogg MBAi: This is a joint degree between Kellogg and the McCormick School of Engineering. Graduates will be prepared for careers in tech operations, analytics, and innovation leadership. 

• Foster School of Business Technology Management MBA: This is an 18-month work-compatible MBA conferred by the Foster School of Business, and is designed to prepare graduates to accelerate or re-direct their careers, or to start their own businesses.

• IE Business School Tech MBA: This is a one-year MBA conferred by the IE Business School. It is designed for students who want to develop their career in the technology sector or in tech-centric job roles, and who seek to become fluent in the language of business and technology. 

In addition to the Tech MBA program options, many schools are integrating technology tracks into their full-time, two-year MBA programs. Fordham University’s Gabelli School of Business has created a secondary concentration in blockchain, and Georgetown’s McDonough School of Business now offers a handful of classes in fintech and crypto. And this trend is just getting started. Recently, several elite schools have announced incoming investments earmarked for building out technology initiatives. The USC Marshall School of Business received a $5 million gift to establish the Digital Assets Initiative, which will establish new curriculums and research opportunities in cryptocurrency, NFTs, and blockchain. Similarly, Harvard Business School is establishing the “D3” Institute to promote collaboration and research in digital and technology, data science, artificial intelligence and machine learning, and design thinking. And University of Pennsylvania’s Wharton School recently received an anonymous $5 million donation (in bitcoin) that will support the Stevens Center for Innovation in Finance, which focuses on fintech research and education.

University of Pennsylvania’s Wharton Named Top MBA by the Financial Times

The Financial Times just released its 2022 MBA rankings and University of Pennsylvania’s Wharton school is at the top. This marks the school’s eleventh return to the first rank, after last receiving the honor in 2011. Columbia placed second, which is its highest-ever showing in the Financial Times ranking. U.S.-based MBA programs had a strong showing overall, taking ten out of the top fifteen spots.

Harvard Business School Sets a New Agenda Focused on Positioning Business to Solve Society’s Biggest Challenges

Srikant Datar took over the leadership of Harvard Business School in January 2021, mid-way through the academic year, and in the midst of the covid pandemic. Rather than derailing his vision, the pandemic, with its emphasis on technology and hybrid learning formats, has actually expedited it. “COVID is the passage to the school’s future. Without any doubt, it has been an extremely exciting and rewarding year,” he said.  

Datar spent a considerable amount of time seeking input from the HBS community when building his agenda. He spoke with every faculty member and facilitated individual and small group meetings with alumni, students, staff, and others to understand their goals and perspectives. Datar then defined three “aspirations” for the school, “...stretching HBS and its learners beyond notions of merely personal success toward becoming, collectively and individually, driving forces in redefining the role of business in society around the world—addressing inequality, exclusion, climate change, and other intractable problems. Second, directing HBS’s research to action, ensuring that the leaders it trains or influences change practices and engage human differences to enhance the constructive role of capitalism. And, finally, the school must transform learning, extend its reach, and work with its students throughout their careers.”

Datar also named the “engines” that would make these aspirations possible: recruiting a diverse array of talent and enabling their success, undergoing a digital transformation for education delivery and the HBS “research infrastructure”, and “expanding and deepening ties” to the greater University, particularly into the humanities. 

To activate the aspirations, Datar announced that Harvard Business School will be creating two institutes, one focused on business and society, and the other on digital and technology. These institutes will provide a structure that facilitates faculty interactions, student engagement with research efforts and new technologies, and space for alumni and businesses to access, train and collaborate using the latest research.  

The Institute for the Study of Business in Global Society, which will be led by Debora L. Spar, will house the following activities:

• HBS’s academic partnership with OneTen, an organization dedicated to advocating for black individuals who do not have an undergraduate degree, but wish to use skills and knowledge to obtain “family-sustaining careers”

• Climate change research and the promotion of carbon neutral goals by considering alternative accounting metrics

• Economic development within mid-American cities harmed most by de-industrialization; researching promising engines to spur business and economic growth

• Social Enterprise research and the development of new models to enhance impact

The second institute, currently labeled “D3,” will be led by Karim R. Lakhani and focus on digital and technology, data science, artificial intelligence and machine learning, and design thinking. Clustering the topics together will optimize research efforts and maximize the impact for HBS and business overall. 

While the HBS priorities are centered on two key pillars, business and society, and data and technology, Datar says he considers these components two parts of a whole. “When I think about the challenges we’re talking about,” Datar said, alluding to both the school and society writ large, “every time we have talked about technology on one side of the coin, on the other side is humanities and people. Any time you let those two get out of synch, the opportunity for division arises, and with it, economic harm. Leadership at the core means always thinking about impact on people, and on what you are trying to achieve through an organization.” 

Read the full interview between Srikant Datar and the Harvard Magazine here.  

Biden Administration Remains Under Pressure to Move Forward with Student Debt Cancellation

On May 1, 2022, which is just three months away, federal student loan payments will resume. This comes after a two-year period during which borrowers could choose whether or not they would make payments. As the date nears, the Biden administration is under pressure to make good on campaign promises to reduce student debt for millions of Americans with federal loans. Last week, 85 Democratic members of Congress sent the President a letter urging him to, “...direct the Department of Education to publicly release the memo outlining your legal authority to broadly cancel federal student loan debt and immediately cancel up to $50,000 of student loan debt per borrower.”

But it is still unclear how President Biden will move forward. During his campaign, he promised to forgive up to $10,000 per student loan borrower, but he has since expressed hesitancy to extend loan forgiveness to those attending elite schools or who obtained professional graduate degrees, and have strong repayment prospects. In a press conference last month, President Biden declined to comment on a question about student loan forgiveness. 

An article in the Wall Street Journal speculates that the Biden Administration may opt to forego blanket debt forgiveness for an alternative path, “...by starting a regulatory process, complete with input from stakeholders, to set up a debt-forgiveness program that targets people most in need.” This path may allow the administration to avoid a potential Supreme Court battle that an Executive Action may spur.

In the meantime, the administration has moved forward with more targeted loan-relief initiatives, such as a revamp of the long-standing Public Service Loan Forgiveness (PSLF) program. This would allow those who have worked for a public or nonprofit organization, and also made monthly payments for a ten-year period (120 payments) to have their loans forgiven. A revamp is exciting for current business, medical, and law students who wish to go into public service, and necessary. The original program, which dates back to 2007, burdened participants with bureaucratic hurdles, and only provided benefits to a small percentage, about 16,000 out of 1.3 million. 

Harvard Round Two Action Expected Wednesday

Late last week, the HBS Director of Admissions announced that on Wednesday, February 2nd at 12:00pm EST, all Round Two applicants or those Round One applicants who received “Further Consideration” will receive an update via the Application Status page. At this time applicants will either receive an invitation to interview or will be released from the process.

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U.S. News’ Best Online MBA Ranking Released with Three-Way Tie for First

Yesterday, the U.S. News & World Report released its rankings for the best online MBA programs of 2022. In a three-way tie, Indiana University’s Kelley, University of North Carolina’s Kenan-Flagler, and University of Southern California’s Marshall all took the number one spot.  

UNC’s Kenan-Flagler received the top ranking for the second year in a row, sharing the 2021 accolade with Carnegie Mellon’s Tepper School of Business (ranked fourth in 2022), while Indiana increased two spots from last year and USC increased three spots. 

Indiana’s Kelley also ranked highest for Best Online Finance MBA and Best Online General Management MBA.  

U.S. News & World Report Top 10 Online MBA Programs 

MBA Curriculums Expand to Include Content in Environmental and Social Conscientiousness

Sustainability. Social enterprise. Impact investing. These words may have been in the course titles of fringe electives a decade ago, but today they are quickly becoming mainstream components of leading business school curriculums. This is well-evidenced by the Financial Times Responsible Business Education awards, which celebrate the best “examples of work by business schools seeking to focus on people and planet alongside profit” in three categories: academic research, teaching cases, and alumni change makers. There is an emerging trend for business schools to think and teach about outcomes and values beyond profit maximization. 

A recent New York Times article on Environmental, Social, and Governance’s (ESG) increasing role in business education and the workforce noted that the incorporation of ESG topics within the MBA is being driven by student and employer demand. At Yale’s School of Management, sustainability is integrated into required core courses such as microeconomics, accounting, and corporate finance, while Duke’s Fuqua School of Business has added a new core course titled Business and Common Purpose. At University of Pennsylvania’s Wharton, there are more than 50 undergraduate and graduate courses related to social impact, and at Harvard Business School, an elective course on social enterprise had 600 matriculants (a sizable increase from 251 in 2012). 

In the past, there was a sense that MBA students who wanted to go into ESG could not command the same salaries as those following more traditional—consulting or finance—career paths. A study, not yet published, by the Yale School of Management including more than 2,000 students across 29 business schools, found that over half (51 percent) of students would accept a lower salary to work for an environmentally responsible company, an uptick of seven percentage points from five years ago. Students’ preferences are obviously changing, and so is the market. 

According to McKinsey, global sustainable investment grew by about 68 percent between 2014 and 2019, reaching over $30 trillion. This has created a number of new job opportunities, and the demand in the market has put upward pressure on ESG-related salaries. Further, the relative “newness” of the field also creates an appealing opportunity in terms of career growth, with relatively few people standing in front with seniority. MBA graduates can advance quickly. Recruiters tell the New York Times that filling experienced-hire and senior roles in sustainability is challenging; this may also benefit MBA graduates by providing them with early access to more senior positions. 

There also appears to be a growing need for ESG skills across industries. “There’s this tension for any student who wants to pursue sustainability, which is, ‘I have massive debt, but I also want to do good,’” said Bethany Patten, the Senior Associate Director of the Sustainability Center at M.I.T.’s Sloan School of Management. However, she points out that jobs at banks and investment firms that require sustainability skill sets, as well as finance, are offering salaries that are generally on par with typical finance salaries. 

The opportunity for ESG roles in the marketplace is ripe, and many students are interested in pursuing them, but the number of graduates who take purely ESG roles directly out of an MBA program remains relatively low. At Wharton, just 1.8 percent of graduates went into social impact work. At Stanford, the proportion was higher at 19 percent. But Dr. Costis Maglaras, Dean of Columbia Business School thinks these numbers will continue to increase. “Over the last two decades if you ask yourself, ‘What is the thing that really transformed businesses?’ It’s been technology, data, analytics. If you were to ask what will transform businesses in the future, I believe it’s going to be climate change.”

Technology Growth Expected to Drive MBA Hiring

The 2022 hiring outlook for MBA graduates is strong. After the early stages of the pandemic caused demand to falter for 2020 graduates, both hiring and salaries have rebounded to pre-pandemic levels. The QS Global Employer Survey 2022, which included over 5,000 MBA employers from 40 countries, found that 70 percent of US employers expect to hire more graduates within their organization in the next year.

Technology firms, which have shown consistent growth throughout the pandemic, are expected to drive demand for MBA graduates. Technology recruiters' interest in hiring MBAs has grown over time according to the 2021 GMAC Corporate Recruiters Survey, with the number of technology recruiters planning to hire MBAs climbing from 80 percent in 2019 to 96 percent in 2021. Similarly, the QS Global Employer Survey found that just over 50 percent of US companies offered MBA graduates roles in IT and technology, in both 2020 and 2021, compared to 27 percent receiving those functional roles globally (2021). 

Amazon reported that in 2021 they increased MBA hires by 20 percent due to growth in demand for their products and services. Speaking to BusinessBecause, an Amazon spokesperson explained that the company hires were based on demand and that, “We work with business teams across Amazon to determine their need for student talent each hiring season.” The spokesperson also noted that they expect hiring to continue to increase in 2022. Other large employers of MBAs in technology include Google, Microsoft, and Apple. 

Consulting will also continue to play a large role in MBA hires. With the US management consulting market size projected to grow by 4.1 percent in 2022, demand for MBAs from consulting firms is expected to remain high. GMAC’s Corporate Recruiters Survey found that 95 percent of consulting recruiters plan to hire MBAs. And, In 2021, 46 percent of those recruiters said that they expected to increase their MBA hires, compared to just 21 percent in 2020. McKinsey, BCG, and Bain have historically employed the largest number of MBA graduates and will likely continue to do so. 

As companies throughout the US struggle with hiring and retaining the skilled workforce that they need, MBA graduates are well positioned to thrive. Economists are speculating that omicron could continue to impact the overall employment rate, pointing out that, across industries, quit rates have remained high, but hiring rates remain even higher. “Workers being able to quit their jobs to take better ones is a very good thing and signals an economy with healthy dynamism,” said Economic Policy Institute President, Heidi Shierholz. “A high quit rate combined with strong job growth is absolutely something to celebrate.”  

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Our Ways of Working are Changing. How should MBAs Prepare?

Our Ways of Working are Changing. How should MBAs Prepare?

The “Great Resignation,” a high rate of employees leaving their jobs month-over-month, emerged as one of the key stories in 2021. Many initially hypothesized that the mass exodus was driven by empowered employees seeking greater mental well-being and flexibility. But the truth may be a bit more nuanced. Experts are now suggesting that many are leaving their employers out of necessity due to covid-related child-care woes and health concerns. Others are simply transitioning to new jobs with higher pay or flexibility. Either way, the trend shows that employee needs and priorities are changing and that the workplace must adapt. 

To help prospective and current MBA students better understand this new and dynamic environment, Carrington Crisp, an educational consultancy and research firm, partnered with the Executive MBA Council (EMBAC) and the Working Professional Task Force to research the changing nature of work and learning. After interviewing 100 employers across the globe, the consultancy found five trends. 

• Increasing demands for flexibility: Among employers, 44 percent agree that the flexible working options offered during the pandemic are here to stay.

• Commitment to lifelong learning: Most employers, 86 percent, agree that employees will need to take part in continuing education initiatives to maintain relevancy throughout their careers. 

• Digital transformation: Continuing education activities will transition online for many organizations as budgets remain stable or decrease. Approximately 80 percent of respondents also expect that management and executive development will include online learning elements. 

• A focus on skills (new and old): Most employers recognize that leadership and communication skills will only gain in importance as employees manage increasingly diverse groups across generations and geographies. But employers also named newer skills such as digital transformation, artificial intelligence, operational efficiency, data analytics, and data-based decision making as critical. 

• Fast application of learning: Employees will be expected to apply their new knowledge to their environment quickly. 

Business schools will need to evolve too. Below, representatives from MBA programs discuss content they believe will soon be an essential part of a general management education. 

• People Analytics and Human Resources: Susan Fournier, Dean of Boston University’s Questrom School of Business, noted that there may be a greater emphasis than ever before on the role of HR in defining the “social architecture” of a company, and facilitating flexibility and other strategies that promote employee retention. Similarly, Charlie Tharp, an HR Management professor at Questrom, points to the key role that people analytics will play for businesses in the future. The world, he noted, is shifting from defining value in terms of physical assets to human capital (skills and abilities). As such, the role of HR and people analytics capabilities will grow in strategic importance.

• “Out of the Box” Management: MIT’s Sloan School of Management is teaching students to meet the moment through a speaker series, which started in 2020; the 2021 theme is “Building a Better World of Work.” MIT Professor Erin Kelly describes this moment in history as bringing an opportunity to managers to think more meaningfully about supporting employees in individualized ways—extending efforts beyond generalized workplace wellness initiatives and managing employees in ways that promotes sustainability, as well as physical and mental wellbeing.

• Leadership in Uncertain Times: Professor of Management at Boston College, Jerry Kane, notes that disruptions are inevitable, even looking beyond the pandemic, and that business schools must train students to navigate and lead through ambiguity, making decisions and moving forward with intention despite uncertainty. For example, he points out that employees are valuing flexibility more than ever and companies that aren’t willing to reconsider the old ways of doing things and make changes will lose out in the battle for talent.