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2021 Financial Times Global MBA Ranking - Analysis

Seven leading US Schools - MIT Sloan School of Management, Stanford Graduate School of Business, Columbia Business School, Harvard Business School, University of Pennsylvania Wharton Business School, Haas School of Business, and UCLA Anderson School of Management, opted out of participating in the 2021 Financial Times Global MBA Ranking, causing yet another major shuffle in the top order.

In the absence of leading US Schools, INSEAD moved up three places to lead the rankings. London Business School moved up from fifth place to second place. Third place was taken by Chicago Booth, securing the top spot for a US MBA program. Yale School of Management made the largest jump in the rankings, from 14th place to 4th place, tied with IESE Business School in the Financial Times 2021 Global MBA ranking.

The ranking surveyed 143 global schools out of which the top 10 global MBA programs feature 5 US programs and 5 programs from the UK, Europe, and China.

Financial Times - Ranking methodology

The FT’s ranking methodology considers twenty factors. Since the ranking gives the highest weightage to post-MBA salary (20%) and increase in salary (20%), candidates targeting top MBA programs on return on investment will find the ranking useful.

The second-highest weighted factor is FT’s research rank, which is calculated based on the number of articles published in 50 select journals proportional to the faculty’s size.

International diversity and reach are other ranking factors considered by FT that covered post-MBA mobility (international offers), faculty’s international experience, and student’s place of origin, contributing 14% to the ranking. Faculties with Doctorates degree was the 5th factor that influenced the schools’ ranking, whereas corporate social responsibility, female students, female faculty, value for money, and even career progression didn’t have a noticeable impact on the ranking.

Ranking FactorWeightage
Weighted Salary20
Salary Increase20
FT research rank10
International mobility6
Faculty with doctorates5
International faculty4
International students4
Value for Money3
Career Progress3
Aims Achieved3
Careers Service3
Alumni recommend3
International course experience3
Corporate social responsibility3
Employed at 3 months2
Female faculty2
Female students2
International board2
Women on board1
Extra languages1

Top 10 Ranking by Increase in Salary

Schools featuring at the bottom of the ranking could rank on top of the table when the % increase in salary was considered. These schools were international programs featuring 4 from China, 6 from the US, India, Mexico, and Singapore. With an excellent ROI record, the 1-year MBA/PGP courses attract experienced applicants with impressive career progression. The post-MBA salary matches their years of experience and attracts offers with a higher base salary.
Yale School of Management was the only top-ranking Ivy League school that was featured in the top 10 list, securing the last place for an increase in salary.

Overall School RankSchool NameSalary Percentage Increase
32Fudan University School of Management190
64Shanghai University of Finance and Economics: College of Business189
23Indian School of Business173
84Ipade Business School173
43Michigan State University: Broad172
53Shanghai Jiao Tong University: Antai159
7Ceibs156
14National University of Singapore Business School138
11University of Virginia: Darden135
71Brigham Young University: Marriott135
60University of Rochester: Simon Business School135
47Pennsylvania State University: Smeal134
4Yale School of Management133

Top 10 Ranking by Weighted Salary

The dominance of US B-schools was evident in the rankings of the top 10 schools by weighted salary. Booth led the rankings with the highest weighted salary of $200,287. IIM Ahmedabad, INSEAD, CEIBS, and London Business School were the only non-US schools in the top 10 rankings, securing a second, fourth, eighth, and tenth place, respectively.

School NameWeighted Salary
University of Chicago: Booth$200,287
Indian Institute of Management Ahmedabad$192,390
Northwestern University, Kellogg School of Management$190,975
INSEAD$188,432
Yale School of Management$186,887
Dartmouth College: Tuck$182,988
University of Virginia: Darden$179,176
Ceibs$178,558
Duke University's Fuqua School of Business$177,895
London Business School$177,234

Top 10 Ranking by Career Aims Achieved

Career progress, a ranking factor, is calculated based on the change in seniority, size of the company where alumni work now, and data from 2017 – a combination that might not give an updated perspective in a post-pandemic job market. Aims achieved – the degree to which alumni fulfilled their goals, is another ranking factor. Both the factors contributed to 6% towards the total ranking score.

Babson College: Olin’s experiential learning-focused MBA was the only top-ranking US program to have made it into the top 10 rankings by career progress, at third place. Institutions from China (3), India (3), Europe (2), and Mexico dominated the remaining places in the rankings. It is uncertain whether the applicants to these schools had a realistic perspective about post-MBA career opportunities or if the local opportunities in ‘growth’ economies helped achieve their career goals.

Career Progress RankSchool Name
1Shanghai University of Finance and Economics: College of Business
2Indian Institute of Management Ahmedabad
3Babson College: Olin
4Indian Institute of Management Indore
5Iese Business School
6Shanghai Jiao Tong University: Antai
7Indian Institute of Management Calcutta
8Ceibs
9HEC Paris
10Ipade Business School

 

The FT’s salary-intensive rankings vs. the US News peer recommendation-intensive rankings paint different pictures. Weighted salaries can be elusive as they vary by economies, geographies, industry, and career levels. The career progression and aims achieved rankings should also be considered with a pinch of salt since applicants have diverse expectations depending on where they are in their life and career. However, there is no denying that those looking at short-term ROI based on an immediate salary increase - both by percentage and median base salary, while also expanding the search to schools in the UK, Europe, India, and China will find FT Global MBA ranking extremely valuable.

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Reference

Financial Times MBA Ranking

 

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Atul Jose - Founding Consultant F1GMAT

I am Atul Jose - the Founding Consultant at F1GMAT.

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