Business School Rankings According to the Experts - PowerPoint Presentation

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Business School Rankings According to the Experts

Robert J. Morse, Chief Data Strategist U.S. News & World Reportrmorse@usnews.com Presented at: Mid-Atlantic Association of Colleges of Business Administration (MAACBA) 2016 Annual ConferenceNew York, NYOctober 28, 2016Slide2

U.S. News Best

Business School Rankings Undergraduate BusinessMBA: Full-time and part-timeOnline Degree MBA programsOnline Degree Graduate Business (non-MBA) programsSlide3

The Editorial Philosophy Behind the

U.S. News Business School Rankings Consumer oriented mission -to provide prospective business school students and their parents with key comparative information they need to make an informed b-school choice.Choice has important career implications. Choice can be heavily influenced by the ever rising cost of tuition, room & board, travel, clothes, entertainment, etcSlide4

The Editorial Philosophy Behind the

U.S. News Business School Rankings Provide the public and prospective students with an understanding of a b-school edu at all levels: undergrad, bricks and mortar MBA and online MBA and online business non-MBA. Provide ongoing practical advice on many aspects of applying and financing a b-school education. Transparency in how the rankings are done. U.S. News publishes clear and detailed methodologies for all the various b-school ranking methodologiesSlide5

Why are the U.S. News Business School Rankings Helpful to Consumers?

The U.S. News B-school rankings are based on accepted measures of academic quality. Many U.S. business schools use the same ranking data U.S. News uses for their own internal peer analysis and to do peer-to-peer comparisons against other b-schools. The U.S. News ranking process is totally independent of the information published by a b-school, college or universitySlide6

Why are the U.S. News Business School Rankings Helpful

to Consumers? What does all of this mean in the current global education information marketplace? U.S. News--over the last 30+ years has become a trusted, respected and unbiased source of rankings and assessments which the business school going public in the U.S. and worldwide turns to for reliable advice and credible guidance.Slide7

MBA Rankings Methodology

The weights:Peer Assessment—25%Corporate and Hiring Contacts Reputation—15%Student Selectivity—25%Placement Success—35%The MBA rankings are based on the traditional full-time and accelerated full-time programs. Distance/Online, PT-MBA, and executive MBA programs are not included in the rankings. The universe of master’s programs in business is all master’s programs in the United States accredited by the Association to Advance Collegiate Schools of Business.

In fall 2015, we surveyed 470 MBA programs, 379 responded, 129 of which were ranked as full-time MBA programs.

Data definitions are from the Graduate Management Admission Council. U.S. News has also fully adopted the MBA CSEA definitions and standards for reporting placement data.

Counts from rankings published March 2016. Slide8

Academic Peer Assessment

Academic quality of the MBA program is measured by an annual survey of business school deans and M.B.A. program directors at each of the Association to Advance Collegiate Schools of Business International accredited master’s program in the United States.Schools are marked on a scale of 1 (Marginal) to 5 (Distinguished). There is a “Don’t Know” option that is automatically selected, if no other option is marked.In fall 2015, 942 surveys were mailed. Approximately 41% of them were returned. A school's score is the average of all the respondents who rated it 1 thru 5. “Don't know" responses aren’t counted at all in computing a school’s average academic peer score. Slide9

Corporate and Hiring Contacts Reputation Survey

It is measured by an annual survey of corporate recruiters and company contacts who hire recent graduates from the ranked MBA programs.Names of all corporate recruiters were gathered directly from ranked FT- MBA programs during the summer of 2015 by U.S. News. The format is identical to that of the Peer Assessment survey filled out by deans and directors of programs.In fall 2015, 1015 surveys were emailed out.The surveys are conducted 100% onlineA school's score is the average of all the respondents who rated it in the three most recent years of survey results. “Don't know" responses are counted at all in computing a schools’ average recruiter score. Slide10

Student Selectivity

There are three factors involved in the MBA student selectivity section of the ranking model. Mean GMAT and GRE scores (0.1625): This is the average Graduate Management Admission Test score and average GRE quantitative and verbal scores of full-time MBA students entering in fall 2015. We use both GMAT and GRE scores in the ranking model for MBA programs that reported both scores. Using the GRE scores allows us to take into account the admissions test scores of the entire entering full-time MBA class.The average undergraduate GPA of entering full-time students (a total weight of .075).The acceptance rate of the full-time program (a total weight of .0125). The additive inverse of the acceptance rate is used in the ranking calculations.All data are from fall 2015 entering class.Slide11

Placement Success

The three factors involved in the placement success of the model:The percent of full-time program graduates employed at graduation (a total weight of .07).The percent of full-time program graduates employed 3 months after graduation (a total weight of .14).The mean starting salary and bonus of full-time program graduates (a total weight of .14).All data is based on the 2015 graduating class. Employment rates are based off of those graduates known to be seeking jobs. Salary figures are based on the number of graduates who reported data. The mean signing bonus is weighted by the proportion of those graduates who reported a bonus, because not everyone who reported a base salary figure reported a signing bonus. 

U.S. News has also fully adopted the MBA Career Services and Employer Alliance (MBA CSEA) definitions and standards for schools to report their placement data. Slide12

FT-MBA Methodology

Key Details In order to be ranked, a full-time M.B.A. program had to have 20 or more graduates who were seeking employment in 2015. For a school to have its employment data considered in the ranking model, at least 50 percent of its 2015 full-time M.B.A. graduates needed to be seeking work.  If either or both of these two conditions aren’t met, then that M.B.A. program is excluded from the rankings and listed as “Unranked.”Seeking employment is an MBA CSEA reporting standard/conceptSlide13

Part-time MBA Ranking Methodology

U.S. News's part-time M.B.A. ranking are based on five factors: Average peer assessment score (50 percent of the school's overall score)2. Average GMAT score and average GRE quantitative and verbal scores of part-time MBA students entering in fall 2015 (15 percent). We use both GMAT and GRE scores if PT-MBA reports both, allows us to take into account the admissions test scores of the entire entering class.Slide14

Part-time MBA Ranking Methodology (cont.)

3. Average undergraduate GPA of part-time MBA students entering in fall 2015 (5 percent)4. Post-undergraduate degree work experience of part-time MBA students entering in fall 2015 (15 percent). More work experience (average number of months) scores higher in PT-MBA rankings. 5. The percentage of the business school's fall 2015 total MBA enrollment that is part time (15 percent). Larger percentage of total MBA enrollment that is PT, scores higher in the PT-MBA rankings. Slide15

Part-time MBA Ranking Methodology

U.S. News's part-time M.B.A. ranking-more details behind the rankings. The average peer assessment score is based on surveys from fall 2015 and fall 2014 that asked business school deans and MBA program directors at part-time MBA programs to rate the other part-time programs on a scale from marginal (1) to outstanding (5). Those two years of peer assessment survey results were averaged to calculate a program's score. Forty-four percent of those surveyed in 2015 responded.  To be eligible for the part-time MBA ranking, a program needed to be accredited by the Association to Advance Collegiate Schools of Business International and have at least 20 students enrolled part time in fall 2015The rankings: 296 of the nation's 344 part-time MBA programs met those criteria. 296 PT-MBA programs were ranked in latest rankings published March 2016. Slide16

Methodology for U.S. News Undergraduate Business Rankings

Rankings of undergraduate business schools and specialties are based solely on the peer assessment surveys sent to business school academics. Each AACSB accredited undergraduate program was sent two surveys. In September 2016 (latest rankings) there were 488 programs ranked. Questionnaires are sent to annually to B-school dean and dean of undergrad academic affairs for undergrad biz.This means that each b-school got two votes. U.S. News hopes that both b-school surveys are returned. Latest undergrad b-school rankings were published September 2016. Slide17

Methodology for U.S. News Undergraduate Business Rankings

In 2016, 38 percent of those surveyed responded. This year, for the second consecutive year, U.S. News used the two most recent years' responses rather than just the most recent year's to calculate the overall undergraduate business school rankings.There are also rankings for 12-departments such as accounting, finance, marketing, international, etc. A school or program had to receive seven or more nominations in a specific specialty (department) area to be listed. This means that schools ranked at the bottom of each specialty ranking have received at least seven nominations. Slide18

Best Online Degree Programs

Key Concepts Online = predominantly distance ed. degree granting programs (IPEDS). No MOOCS, hybrids. Ranked 222 online MBA programs in January, 2016 -- 218 from public or not-for-profit private schools. Separately ranked 123 online master’s in business programs (e.g. degrees in accounting, finance, project management, etc.) – 120 from public or not-for-profit private schools. Institutions may be ranked in both areas. Report to U.S. News distinct program-level statistics for both. AACSB accreditation not required (but beneficial). Slide19

Best Online MBA methodology

Student engagement (28%): A combination of course delivery best practices + program level accreditation (.112), three-year graduation rate (.084), one-year retention rates (.028), class size (.028) and time to degree deadline (.028).Admissions selectivity (25%): A combination of GMAT/GRE scores (.1), undergraduate GPA (.05), acceptance rate (.05), prior academic and work experience (.05). Peer reputation (25%): Rating of program quality on 1-5 scale by other schools with online MBA programs. Faculty credentials and training (11%): A combination of instructional faculty with terminal degrees (.044), preparedness to teach distance learners (.033), tenured/tenured-track faculty (.022) and technical staff available to faculty (.011). Student services and technology (11%): A combination of graduated indebtedness (.055), technological infrastructure (.0275) and support services made available remotely (.0275).

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Best Online Business (non-MBA) Methodology

Ranking factors identical to Online MBA ranking but different weights.Less emphasis than online MBA on selectivity/reputation; more on remaining factors: Student engagement (33%)Admissions selectivity (20%)Peer reputation (20%)Faculty credentials and training (13.5%)Student services and technology (13.5%)Peer reputation survey is administered to schools with other non-MBA online business programs, and is distinct from online MBA reputation survey.Slide21

The U.S News ranking

experience U.S. News provides many colleges and b-schools a great deal of free visibility from potential applicants from the U.S. and abroad.Why? Our Americas’ Best Colleges/Best Grad web site’s monthly traffic is typically around 30 million+ page views. U.S. News is on balance helping not hurting colleges and b-schools with all this free publicity. Slide22

U.S. News ranking experience

U.S. News rankings should be viewed as part of the growing U.S. higher education accountability movement.Universities and b-schools are increasingly being held accountable for their educational policies, funds expended, the level of student engagement, how much graduates learn and whether the get good jobsSlide23

U.S. News ranking experience

This trend has meant that many prospective students and their parents have more and more been left to educate themselves about colleges, MBA programs, undergrad b-schools and the college admission process.U.S. News has filled this information void and has become a trusted source of advice and planning that millions now use to help choose the right college and b-school. Slide24

U.S. News ranking experience

Created a competitive environment in higher education that didn’t exist before. Some college presidents and b-school deans say that this competition makes everyone better and helps students. The U.S. News rankings have become the annual public benchmark to measure the academic performance of U.S. colleges and b-schools (both MBA and undergrad). Slide25

U.S. News ranking experience

Do rankings “make” school administrators and b-school deans do the wrong thing? Do these administrators regularly make education policy choices for the sole purpose of doing better in the rankings, versus making policy decisions that are good for students and foster learning? There is certainly evidence that at some U.S. universities education policy makers do take into account what impact their policies will have on the school’s standing in the U.S. News college and b-school rankings. Slide26

U.S. News ranking experience

At those institutions whose leaders are taking rankings into account in managing their schools--- are those policy choices that target U.S. News rankings variables a good or bad thing? When a school improves factors such placement, salaries, MBA career services offices, GMATs, etc. all U.S. News ranking variables- students benefit.When a b-school rises in the rankings they can attract better faculty and students, more research funding and greater visibility on the global higher ED stage. Slide27

Future of U.S. News Business

School Rankings Rankings are here to stay……... Controversy will continue.. Academic community will remain highly interested in business school rankings. Primary audience will continue to be consumers: prospective b-school students, parents and alumni Rankings are now a worldwide phenomenon and will continue to evolve country-by-country basis. Internet will grow as info source

There

will continue to be many different b-school rankings: far more than in other academic disciplinesSlide28

Thank you for your time!

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