A new ranking based on inputs and outputs

Earlier this week the dean of Columbia Business School, Glenn Hubbard, released an essay examining business school rankings. His thoughts are published on Fortune.com.

“Rankings do matter,” he writes, “though perhaps not in the way that many would expect.”

Hubbard says rankings should measure the quality of a business school based on students. In more detail, rankings should measure inputs (details on acceptance rates and yield) and outputs (job offers and salary).

Most rankings, including Bloomberg Businessweek and U.S. News and World Report use the same — or similar data. In fact, all of Hubbard’s suggested inputs and outputs are available to those seeking an MBA.

So, Poets & Quants took the next step.

Hubbard invites applicants to ‘put these pieces together… and the picture that emerges might be shocking to some.’ So that is exactly what Poets&Quants did, starting with our own ranking of the top 25 U.S. business schools. To measure inputs, we collected two sets of data: The number of applications an MBA program receives against the number of class seats available (which is preferable to total applications because smaller schools obviously would be at an unfair advantage) and yield, the percentage of applicants who enroll in the MBA program once admitted (because this number tells you which schools are preferred by candidates and which ones are not). We then compared those two “inputs” against the “outputs” recommended by Dean Hubbard: salary and job offers, or more specifically average starting salary and bonus and the percentage of a class employed three months after graduation. All the data is for the Class of 2014 which graduated last spring.

Poets & Quants began by ranking schools in each input and output category. Goizueta Business School is in the Top 25 in all:

Individual Stats

Overall Ranking

School Index P&Q Rank Apps per seat Yield Pay Jobs
  1. Stanford 100.0 1 17.9 78.7% $142,834 92.1%
  2. Harvard 91.3 2 10.2 88.8% $144,750 89.4%
  3. MIT 86.2 7 11.7 62.3% $142,936 92.8%
  4. Berkeley 85.3 10 14.4 52.5% $140,935 86.7%
  5. Wharton 82.0 4 7.1 68.0% $142,574 95.6%
  6. Columbia 81.6 5 7.8 70.4% $139,006 91.1%
  7. NYU 79.8 10 11.3 48.7% $135,933 90.4%
  8. Chicago 79.0 4 7.2 59.4% $137,615 97.2%
  8. Tuck 79.0 8 8.7 52.2% $142,489 93.8%
10. UCLA 78.1 14 11.7 48.2% $127,535 88.6%
11. Kellogg 77.2 6 6.7 63.9% $136,357 88.6%
12. Foster 75.9 23 9.8 44.7% $125,367 95.8%
13. Darden 75.5 13 8.4 45.8% $136,474 93.4%
14. Duke 75.4 9 7.8 50.9% $137,154 89.8%
15. Yale 73.9 12 8.5 49.5% $126,871 88.9%
16. Olin 73.1 24 12.1 30.9% $111,974 96.9%
17. Cornell 72.8 15 6.3 52.6% $132,316 89.8%
18. Emory 72.5 20 7.5 43.5% $128,347 94.8%
18. Michigan 72.5 11 5.5 50.9% $140,497 89.7%
20. Texas 72.0 19 7.9 44.4% $126,160 91.3%
21. Tepper 71.4 17 6.9 46.6% $131,865 88.3%
22. Kelley 68.4 20 6.6 45.6% $119,581 88.1%
23. UNC 67.6 18 6.8 37.9% $124,641 89.0%
24. Owen 66.3 25 5.3 44.7% $113,830 90.8%
25. Georgetown 64.4 22 6.1 34.5% $118,938 88.5%

Click here for complete Poets & Quants methodology.

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