FT’s New MBA Ranking Out Monday

by John A. Byrne on

The new 2012 global MBA ranking of The Financial Times will come out this Monday, Jan. 30th—and one of the most interesting issues will be whether Britain’s best business schools suffer a significant decline on the list.

In gathering data for its 14th annual ranking, the British newspaper has already reported that enrollment at the United Kingdom’s best 16 full-time MBA programs has fallen by 10% in a single year, with an even steeper fall of some 15% for domestic students. The 16 programs, which include London Business School as well as the business schools at Oxford and Cambridge, are those ranked by The Financial Times.

The paper quoted the director of MBA programs at Nottingham University Business School, John Colley, who estimated that over the past three years the number of qualified applicants to accredited U.K. business schools had fallen by about 35%. Meantime, the Association of MBAs, a British accreditation group, reported that between 2008 and 2010, the number of students enrolled at 43 of its accredited schools in the U.K. dropped more than 14% to 8,082 from 9,429.

Drops in enrollment can be directly correlated to a significantly smaller applicant pools as well as a decline in the overall quality of MBA candidates. That, in turn, can put downward pressure on GMAT and GPA averages, and later on, pressure on compensation which accounts for 40% of the FT’s methodology for ranking programs. So it’s very possible that U.K. schools will fare less well in the new Financial Times survey that comes out on Monday.

Last year, only one British school managed to crack The FT’s Top 25 list: London Business School, which tied with the University of Pennsylvania’s Wharton School for first place. Some 13 of the top 25 were based in the U.S. The Brits did better in the top 50, landing seven places, while exactly half of the programs—25 out of 50—were based in the U.S.

It was only two years ago in 2010 when The Financial Times’s made much hoopla over what it called “the diminishing dominance” of U.S. based business schools over the previous decade.

The British newspaper, in a commentary on its global MBA rankings in 2010, noted that only 11 of the top 25 schools on its list were now U.S., a dramatic decline from the 20 U.S. players in 1999 when The Financial Times first started ranking MBA programs.

The newspaper attributed the fall to declines in the degree’s return on investment, especially in the U.S. The Financial Times observed that while it had been commonplace for graduates to triple their pre-MBA salaries three years after graduation, those returns are now rare.

With the significant declines in enrollment at U.K. schools, it would not be surprising if more of them fell out of the top 50 this time around. The enrollment problem is the result of new visa restrictions on graduates so that MBAs no longer have the automatic right to work in the U.K. for two years after graduation as they once did.

“Overseas students like the option of working here for a spell for the experience before they go back,” Nottingham’s Colley told The Financial Times. “The new visa restrictions are killing that.”

Added Lindsay Duke, postgraduate recruitment manager at Durham Business School: “I think the message out there is that the UK is closed to students.”

DON’T MISS: RANKING THE RANKINGS and THE 2011 FINANCIAL TIMES RANKING OF THE BEST FULL-TIME MBA PROGRAMS

  • Ramni

    @vladimir

    avg age at top US schools is around 26 to 27, at INSEAD is around 29 to 30. generally, most of INSEAD students come with better business experience than their peers at US. for this, the length of the program is understandable though many students complain about its fast rhythm. please note, if you want longer program then consider IE, it is great and employers know it well.
    so, the point is: for every smart and mature prospective applicant: focus on fit factor and which school can serve your career goals, don’t be taken by just brand or any other emotional aspects. there are Harvard alumni who didn’t make any success and really disappointed as well as from INSEAD, and there are extremely successful people who did their MBA from unknown schools (Gannon and Vikram). if any MBA student or graduate is insisting so much on how prestigious is his school, then this is huge negative point on his personality and quality.

  • Nicholas Pontt

    Dear All,

    I’d like to raise my hand (and Trinity college goblet) in support of my Oxford colleague, Bayo.

    Granted, the decision where to commence the next chapter of one’s career is personal and there are myriad competing considerations if you are at this juncture, but from my perspective, I could not recommend Said more.

    Like many prospective MBA candidates, I had a strong GMAT score and several years’ work experience – in my case as a City lawyer – but I chose only to apply to Said and Judge, eventually opting for the former over the latter. It was a tough decision but I have never looked back.

    This has been such an amazing, in fact overwhelming, experience already, only one Term in. Granted, we are a young school, but this is one year in an ancient institution, which for 800 years has produced leaders in almost every field imaginable, and I am confident this will continue, including in the business sphere. One year in a vibrant new school, amongst an extremely talented, truly diverse, passionate and energetic cohort. One year in a school bursting with the innovation and momentum brought by our new dean out of Harvard. One year ensconced in the truly integrated, cross-disciplinary collegiate system, benefiting from and adding to the breadth and depth of true intellectual diversity and rigour.

    Talking to my direct experience, Said and Oxford is a place where the focus is not solely on fulfilling the drone space of cookie-cutter jobsworthery – of course, there are many of us seeking (and securing) careers in traditional roles, but an MBA for a true professional is not really about a brand and looking to find a highly paid safety net – it is about contributing to, experiencing and learning from, and exhanging with, a unique, driven, passionate cohort, and adding yourself, and as a collective, to the institution
    you join. Apart from having a hell of a lot of fun out here (seriously, this place is awesome!), I am truly searching within myself and my new found friends for what I think any ambitious, hopeful leader seeks and believes he or she has; the ability to be extraordinary, and really do something that makes a difference, in whatever shape or form that takes.

    If it would be of help, I would welcome inquiries and provide honest, first- hand answers to any interested person – I can be reached at nick.pontt@trinity.ox.ac.uk. In the meantime, my best wishes to all in pursuing their passions, whether prospective, current, past or would-never-consider-it MBAs!

    Nick

  • khagan

    I did a quick LinkedIn search and found the following Oxford MBAs in top- tier private equity….

    – Arsalan Mian, MD, BlackRock PE, NYC
    – Harj Shoan, Dir., Morgan Stanley PE, London
    – Christian Paul, Dir., Permira, Hong Kong

    …and some guy called Joseph McCarthy who’s on the list of top 40 under 40 hedge fund managers to watch in London. Why is it that people attack schools without fact checking and blindly follow the rankings?

  • Rodrigo

    Hey, are you still there?
    Hope you can help me!

    I have been accepted by both Said and Judge, and now have to make that hard decision.
    For some reason, I used to believe that Said has a stronger focus on Finances (which is not my area and way outside my goals), but now I cannot find anything that reinforces that.

    What do you have to say? Is the MBA in Oxford general enough for us to get a good education on all the core areas of an MBA, or is the focus indeed too great on Finances?

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