LondonFinance1
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Management Consulting
I wanted to give you some help in deciding which MBA to choose (assuming that you have already decided to go for an MBA). As the degree is quite expensive, it is important to choose wisely and pick an MBA that helps you to fulfill your aspirations. Based on my experience, I have listed a number of criteria to base your decision on.
1. Rankings
Rankings are fairly important in the world of the MBA, and I would not recommend pursuing an MBA that has not been ranked, even if these are more expensive. Potential employers will look at your choice and might question your decision. The most important global ranking is the annual FT ranking https://rankings.ft.com/rankings/2866/mba-2022 – while it is the soundest in terms of methodology, it has been criticized for placing too much emphasis on salary increases (40% of the overall score) and especially for using PPP https://en.wikipedia.org/wiki/Purchasing_power_parity to calculate salaries. This means that transferring from a lower-income country to a high-income country will not give you much of an advantage according to this methodology, although it will be a great outcome on an individual level. It also excludes salaries from certain sectors and start-up founders, so the number you see is not the actual average across all graduates. The online version of most rankings allows you to pick and choose the criteria that are of special importance to you. The rankings published by Fortune and Bloomberg focus quite heavily on the US/North America.
2. Location
This brings us to location – probably the one factor that you cannot change/overcome. After all, it is a lot easier to drop by and meet someone for an informal chat or a formal interview if you are down the road. So, if you want to work on Wall Street, you might choose Columbia rather than a European school. If your target is Zurich, Universität Sankt Gallen might be a good choice. Your student visa might also be easier to convert into a work visa if you are already in the country (but that can differ a lot between countries and nationalities). Fortunately, London does not have a shortage of ranked business schools: LBS, Cass/Bayes, Imperial, and also Oxford and Cambridge are all in the Top 100 of the FT ranking.
3. Changing Function or Industry
Besides location, MBA candidates often want to change function or industry. Some MBAs are stronger in some functions or industries than others. Look at the curriculum to see if the classes offered fit your ambitions, but you can also get some information from career reports or other class statistics. It definitely helps to ask, and if you have a plan (and also a plan B) for what you want to get out of the MBA.
4. Duration: One-Year vs. Two-Year MBA
Another factor to consider is the duration of the MBA, whether to go for a program lasting one year or two years. European programs tend to be one year, as participants are often one or two years older than American programs. A two-year program is more relaxed and gives you more time off for internships, consulting projects, or even for founding a start-up. It also means that you will not draw a salary for two years (although summer internships between the first and second year can offer decent pay).
5. Part-Time vs. Full-Time MBA
Another decision to make is between part-time or full-time programs, should your program of choice offer both options – usually in Europe rather than the US. A full-time MBA gives you the opportunity to focus, especially if you want to make career changes in location, function, or industry. Interviewing will take time, and you might not be able to take days off in your full-time job when needed (let’s say you are doing three interview rounds at three companies, which would already be two weeks of holidays). A part-time MBA has the advantage that you do not need to leave your job and will continue to draw a salary, but it can also be quite challenging to run a demanding MBA next to a full-time job and a family. Friends of mine have asked their employers to reduce working time to better cope with this. You will need to read 100-200 pages per day to prepare for classes and usually have to write one or two papers at the same time. Should you not live in the city of your business school, you will also need to factor in travel to and from modules every other month or so. Part-time degrees tend to be more expensive than full-time programs at the same university.
6. Class Composition and Diversity
As you will learn as much from your classmates as from your professors, I would recommend having a good look at the composition of the class. Diversity is important for stimulating the learning environment. Most business schools will publish statistics, but I would recommend asking more questions. At the moment, MBAs are quite male-dominated, so everything over 30% female participants is a good number and will also make the class a better learning environment. When it comes to international students, ask for the distribution and how many nationalities are represented – there have been cases where one or two nationalities dominate classes. Diversity of backgrounds (undergraduate studies, pre-MBA job experience) is as important as nationalities. There are no absolute criteria for diversity, but ask the right questions and see that you feel comfortable with what you see. Asking for the average GMAT score will help you to estimate the potential of the class. You also do not want too many graduates in the class who go directly from their undergraduate degree into business school, a trend that is more relevant in the US than in Europe. You also do not want to have too many consultants in your class who just want to get their “ticket punched” before returning to their employers and see the MBA as a gap year rather than an opportunity for personal (and academic) growth.
7. Class Size
Class size is also an interesting factor – too small and you will not have interactions with many peers, too large and you might end up as a number. Larger business schools try to circumvent this issue by running several cohorts as classes within a class.
8. Alumni Network
The strength and width of the alumni network is also an important aspect – will you get the contacts and connections you want? Ask to be connected to some alumni during your decision-making process. Also, try to find out if there is a strong alumni network in your target location. After all, the best connections do not help if they are on the other side of the globe.
9. Career Perspectives of Graduates
Be also inquisitive about the career perspectives of recent graduates – how long did it take them to find jobs after graduation? How did they find these jobs (on-campus, through alumni or other channels)? Did these jobs meet their expectations? Did they manage to make the changes they wanted? Another good indication is the number of contacts with potential employers, e.g., how many companies come to campus, participate in career fairs, or send guest speakers.
10. Cost and Scholarships
Cost is definitely an important factor as well, mainly tuition fees, but also the cost of living expenses and opportunity cost of salary foregone. I would advise not to pinch pennies too much – an MBA is an investment into your career after all, but some differences can be too big to ignore. Scholarships can help to reduce tuition fees, and quite a few business schools offer a variety of different scholarships. Expect a reduction in fees rather than cash payments. Some scholarships offer additional benefits like mentoring as well. Business schools will often publish the number or percentage of recipients, but I would always ask how much of a reduction is offered – a scholarship might sound good on paper and your CV, but a 5% reduction in fees might not be a game changer. If a generous scholarship is offered, it might also be a sign that you could make it into a more challenging/higher-ranked school.
While you can earn money for internships or also for consulting projects, you will not have time for a regular student job to earn some extra money during your MBA. If studying abroad, you should also check your student visa if you are allowed to work during your studies.
Conclusion: Personal Decision
In the end, it is a personal decision which of the criteria above you weigh a bit more (or might not consider at all), so there is no absolute best choice. Rankings try to shine some light into the hundreds, if not thousands of MBA programs out there, but even they are not perfect. Try to be aspirational and apply to at least one school that you think would be a stretch – you might get lucky.
1. Rankings
Rankings are fairly important in the world of the MBA, and I would not recommend pursuing an MBA that has not been ranked, even if these are more expensive. Potential employers will look at your choice and might question your decision. The most important global ranking is the annual FT ranking https://rankings.ft.com/rankings/2866/mba-2022 – while it is the soundest in terms of methodology, it has been criticized for placing too much emphasis on salary increases (40% of the overall score) and especially for using PPP https://en.wikipedia.org/wiki/Purchasing_power_parity to calculate salaries. This means that transferring from a lower-income country to a high-income country will not give you much of an advantage according to this methodology, although it will be a great outcome on an individual level. It also excludes salaries from certain sectors and start-up founders, so the number you see is not the actual average across all graduates. The online version of most rankings allows you to pick and choose the criteria that are of special importance to you. The rankings published by Fortune and Bloomberg focus quite heavily on the US/North America.
2. Location
This brings us to location – probably the one factor that you cannot change/overcome. After all, it is a lot easier to drop by and meet someone for an informal chat or a formal interview if you are down the road. So, if you want to work on Wall Street, you might choose Columbia rather than a European school. If your target is Zurich, Universität Sankt Gallen might be a good choice. Your student visa might also be easier to convert into a work visa if you are already in the country (but that can differ a lot between countries and nationalities). Fortunately, London does not have a shortage of ranked business schools: LBS, Cass/Bayes, Imperial, and also Oxford and Cambridge are all in the Top 100 of the FT ranking.
3. Changing Function or Industry
Besides location, MBA candidates often want to change function or industry. Some MBAs are stronger in some functions or industries than others. Look at the curriculum to see if the classes offered fit your ambitions, but you can also get some information from career reports or other class statistics. It definitely helps to ask, and if you have a plan (and also a plan B) for what you want to get out of the MBA.
4. Duration: One-Year vs. Two-Year MBA
Another factor to consider is the duration of the MBA, whether to go for a program lasting one year or two years. European programs tend to be one year, as participants are often one or two years older than American programs. A two-year program is more relaxed and gives you more time off for internships, consulting projects, or even for founding a start-up. It also means that you will not draw a salary for two years (although summer internships between the first and second year can offer decent pay).
5. Part-Time vs. Full-Time MBA
Another decision to make is between part-time or full-time programs, should your program of choice offer both options – usually in Europe rather than the US. A full-time MBA gives you the opportunity to focus, especially if you want to make career changes in location, function, or industry. Interviewing will take time, and you might not be able to take days off in your full-time job when needed (let’s say you are doing three interview rounds at three companies, which would already be two weeks of holidays). A part-time MBA has the advantage that you do not need to leave your job and will continue to draw a salary, but it can also be quite challenging to run a demanding MBA next to a full-time job and a family. Friends of mine have asked their employers to reduce working time to better cope with this. You will need to read 100-200 pages per day to prepare for classes and usually have to write one or two papers at the same time. Should you not live in the city of your business school, you will also need to factor in travel to and from modules every other month or so. Part-time degrees tend to be more expensive than full-time programs at the same university.
6. Class Composition and Diversity
As you will learn as much from your classmates as from your professors, I would recommend having a good look at the composition of the class. Diversity is important for stimulating the learning environment. Most business schools will publish statistics, but I would recommend asking more questions. At the moment, MBAs are quite male-dominated, so everything over 30% female participants is a good number and will also make the class a better learning environment. When it comes to international students, ask for the distribution and how many nationalities are represented – there have been cases where one or two nationalities dominate classes. Diversity of backgrounds (undergraduate studies, pre-MBA job experience) is as important as nationalities. There are no absolute criteria for diversity, but ask the right questions and see that you feel comfortable with what you see. Asking for the average GMAT score will help you to estimate the potential of the class. You also do not want too many graduates in the class who go directly from their undergraduate degree into business school, a trend that is more relevant in the US than in Europe. You also do not want to have too many consultants in your class who just want to get their “ticket punched” before returning to their employers and see the MBA as a gap year rather than an opportunity for personal (and academic) growth.
7. Class Size
Class size is also an interesting factor – too small and you will not have interactions with many peers, too large and you might end up as a number. Larger business schools try to circumvent this issue by running several cohorts as classes within a class.
8. Alumni Network
The strength and width of the alumni network is also an important aspect – will you get the contacts and connections you want? Ask to be connected to some alumni during your decision-making process. Also, try to find out if there is a strong alumni network in your target location. After all, the best connections do not help if they are on the other side of the globe.
9. Career Perspectives of Graduates
Be also inquisitive about the career perspectives of recent graduates – how long did it take them to find jobs after graduation? How did they find these jobs (on-campus, through alumni or other channels)? Did these jobs meet their expectations? Did they manage to make the changes they wanted? Another good indication is the number of contacts with potential employers, e.g., how many companies come to campus, participate in career fairs, or send guest speakers.
10. Cost and Scholarships
Cost is definitely an important factor as well, mainly tuition fees, but also the cost of living expenses and opportunity cost of salary foregone. I would advise not to pinch pennies too much – an MBA is an investment into your career after all, but some differences can be too big to ignore. Scholarships can help to reduce tuition fees, and quite a few business schools offer a variety of different scholarships. Expect a reduction in fees rather than cash payments. Some scholarships offer additional benefits like mentoring as well. Business schools will often publish the number or percentage of recipients, but I would always ask how much of a reduction is offered – a scholarship might sound good on paper and your CV, but a 5% reduction in fees might not be a game changer. If a generous scholarship is offered, it might also be a sign that you could make it into a more challenging/higher-ranked school.
While you can earn money for internships or also for consulting projects, you will not have time for a regular student job to earn some extra money during your MBA. If studying abroad, you should also check your student visa if you are allowed to work during your studies.
Conclusion: Personal Decision
In the end, it is a personal decision which of the criteria above you weigh a bit more (or might not consider at all), so there is no absolute best choice. Rankings try to shine some light into the hundreds, if not thousands of MBA programs out there, but even they are not perfect. Try to be aspirational and apply to at least one school that you think would be a stretch – you might get lucky.
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