IIM A’s PGPX Ranked No. 2 MBA in the World for Career Progression: Financial Times 2015 MBA Ranking

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One Year MBA courses keep India’s flag flying high in the Financial Times (FT) 2015 MBA Ranking: IIM A’s PGPX rises from 30 to 26 in the overall rankings this year, ISB’s MBA (PGP) rises three places from 36 to 33 while IIM B’s MBA (EPGP) falls from 68 to 82 rank. Consequently IIM A’s One Year MBA (PGPX) is ranked as the No. 1 MBA course in India. Ranking of IIMs pre-experience two-year PGP courses to be available shortly in FT ranking of Masters in Management courses.

MBA programmes from India have shown a strong performance in the Financial Times Global MBA Ranking 2015. IIM A and ISB have bettered their performance from 2014, however IIM B’s MBA has fallen from grace and has been ranked 82 this year – a sharp fall of 14 places.

The top spot in the 2015 Financial Times Global MBA ranking of the 100 best full-time MBA programmes goes to Harvard Business School, which saw off challenges from London Business School (second) and the Wharton School of the University of Pennsylvania (third) to keep its crown. Stanford Graduate School of Business, second last year, slipped to joint fourth with Insead.

This ranking is solely a ranking of MBA courses and is not a ranking of B-Schools. Nor is the ranking based on pre-experience Master in Management (MIM) programmes in India (PGP/ PGDM). FT comes out with a separate ranking of B-Schools, and of MIM pogrammes.

Highlights – Indian B-Schools

  • IIM A’s PGPX is ranked No. 2 MBA in the world for Career Progression, above Harvard’s MBA and just below Stanford School of Business’s MBA 
  • The rise seems to come on the back of higher CTCs for PGPX grads. The weighted average salary for PGPX students in 2014 was $157,459 while this figure for 2015 is $167,676. The weightage salary is an adjusted figure that takes purchasing power of a currency into account and is calculated at PPP rates provided by the International Monetary Fund.
  • IIM A is however ranked at an abysmal 99 in the ranking for research. ISB trumps it and is ranked 65 in the world on this parameter. 
  • IIM A and ISB still long way off from their 11 rank and 13 rank in 2011 – their best ever show on the rankings till date
  • IIM B’s One Year MBA (EPGP) is the No. 5 MBA in the world for career progression, ranked above the likes of Wharton, INSEAD & MIT
  • IIM B’s loss comes largely from an improved performance from other B-Schools – IIM B has improved or maintained its score on most counts in 2015

What is ironical is that while these MBA courses, all one-year in duration, have taken the world rankings by storm, they are yet to be crowned numero-uno within the very B-Schools they represent – officially at least, the two-year PGP courses continue to remain the ‘flagship’ courses at IIMs.

The One Year MBA courses at IIMs have also enabled the institutes to get a Global MBA accreditation from AMBA, UK which their pre-experience PGP courses do not qualify for. 

If China continues to come up the curve and India becomes like China, we would be at a fundamental tipping point,” predicts Davis Blake. (However) long-promised changes in legislation, which might be implemented in the Indian market in 2015, may confuse as much as clarify. The traditional pre-experience PGP (postgraduate programme) taught by the prestigious Indian Institutes of Management could be renamed as an MBA

Financial Times takes note of the confusing state of affairs in the Indian MBA market vis.a.vis the One Year MBA and Two-year PGP courses.

Speaking to FT, Prof. Davis Blake of Michigan Ross says, “Increasingly the competition for US business schools is global. If China continues to come up the curve and India becomes like China, we would be at a fundamental tipping point,” she predicts. (However) long-promised changes in legislation, which might be implemented in the Indian market in 2015, may confuse as much as clarify. The traditional pre-experience PGP (postgraduate programme) taught by the prestigious Indian Institutes of Management could be renamed as an MBA, says FT.

That these confusions are affecting the growth of graduates of the One Year MBA in India and confusing future MBA aspirants is clear. What is interesting to note is that Institutes offering the One Year MBA as their primary course are also affected. Speaking to FT, Ajit Rangnekar, the Dean of Indian School of Business says, “Inside India this (legislation) will have little effect. Within the country nobody cares. All people care about is what institution you went to.”

Highlights – B-Schools in USA, Europe, Australia and Asia Pacific

  • The University of San Diego School of Business Administration is the highest new entrant, at 66th. Nine other schools not in last year’s ranking feature in 2015, including Queen’s School of Business in Ontario, which last reached the top 100 in 2006.
  • China’s Fudan University School of Management and the UK’s Lancaster University Management School recorded the strongest progress, climbing 28 and 27 places respectively to 55th and 50th places.
  •  The Macquarie Graduate School of Management (MGSM) has been ranked Australia’s leading MBA school and number 68 in the world
  • After several years of knocking on the door, the Haas school at UC Berkeley has entered the FT Global MBA rankings top 10 for the first time in 2015
  • London Business School’s MBA is No.1 in Europe. INSEAD’s One Year MBA is No.2 MBA in Europe
  • CEIBS MBA is the No. 1 in China

What is ironical is that while these MBA courses, all one-year in duration, have taken the world rankings by storm, they are yet to be crowned numero-uno within the very B-Schools they represent – officially at least, the two-year PGP courses continue to remain the ‘flagship’ courses at IIMs. The One Year MBA courses at IIMs have also enabled the institutes to get a Global MBA accreditation from AMBA, UK which their pre-experience PGP courses do not qualify for.

Why aren’t more MBAs from India in the list? Well for one, to be eligible to participate, a school should be accredited by AACSB or Equis; it must have a programme that has been running for at least four years; and it must have graduated its first class at least three years before the ranking publication date.

Among top B-Schools, IIM I, IIM L don’t have EQUIS/ AACSB accreditation, while IIM C’s PGPEX seems to have not made the cut despite the B-School having been accredited by AACSB and EQUIS both.

Want to understand the FT Ranking methodology better? Go here.

Detailed Financial Times MBA Ranking 2015

Rank in 2015Rank in 2014School nameCountryWeighted salary (US$)Salary percentage increaseCareer progress rank
11Harvard Business SchoolUS179910963
23London Business SchoolUK1541479710
34University of Pennsylvania: WhartonUS1715439022
42Stanford Graduate School of BusinessUS177089801
45InseadFrance / Singapore1550158623
65Columbia Business SchoolUS16925210636
77Iese Business SchoolSpain1449921218
88MIT: SloanUS1589269720
99University of Chicago: BoothUS1612899735
1011University of California at Berkeley: HaasUS1585188850
1117CeibsChina1495041479
1213IE Business SchoolSpain1522861044
1316University of Cambridge: JudgeUK1466649312
1414HKUST Business SchoolChina13241611731
1415Northwestern University: KelloggUS1595989018
1621HEC ParisFrance12954410417
1710Yale School of ManagementUS1541759621
1817New York University: SternUS1467019038
1922Esade Business SchoolSpain1331381176
2012IMDSwitzerland148148707
2117Duke University: FuquaUS1425579147
2223University of Oxford: SaïdUK1364748616
2320Dartmouth College: TuckUS1538969427
2423University of Michigan: RossUS1441599768
2526UCLA: AndersonUS1423809244
2630Indian Institute of Management, AhmedabadIndia167676882
2631SDA BocconiItaly12110010764
2827Cornell University: JohnsonUS1387829848
2829University of Hong KongChina11835410841
30 CUHK Business SchoolChina11220412519
3132National University of Singapore Business SchoolSingapore10728212781
3227University of Virginia: DardenUS14129710056
3336Indian School of BusinessIndia12654413133
3449Imperial College Business SchoolUK1085538826
3543Manchester Business SchoolUK1157639224
3634Carnegie Mellon: TepperUS13325210059
3652The Lisbon MBAPortugal1223349714
3825Warwick Business SchoolUK1184116151
3933University of North Carolina: Kenan-FlaglerUS1259379367
4038Nanyang Business SchoolSingapore11064210746
4039University of Texas at Austin: McCombsUS1333008873
4236Georgetown University: McDonoughUS1286849676
4335Rice University: JonesUS12305810491
4348University of California at Irvine: MerageUS11216610594
4539Rotterdam School of Management, Erasmus UniversityNetherlands1036267860
4541City University: CassUK1140326813
4546Cranfield School of ManagementUK1184587142
4856Purdue University: KrannertUS10862211334
4950University of Maryland: SmithUS1081439377
5077Lancaster University Management SchoolUK969198149
5158University of Washington: FosterUS1159249389
5259University of Cape Town GSBSouth Africa1447447625
5351University of Toronto: RotmanCanada919748084
5452Michigan State University: BroadUS11006211395
5577Shanghai Jiao Tong University: AntaiChina9369016061
5566Mannheim Business SchoolGermany1061067570
5583Fudan University School of ManagementChina9083314839
5865University of Southern California: MarshallUS1261418458
5941Emory University: GoizuetaUS1225598578
5945Sungkyunkwan University GSBSouth Korea1096367629
6159Vanderbilt University: OwenUS1209368875
6247Indiana University: KelleyUS11625410597
6389ESMT – European School of Management and TechnologyGermany998226554
63 University of Iowa: TippieUS11025811793
6571Georgia Institute of Technology: SchellerUS11349810890
66 University of San Diego School of Business AdministrationUS10640011245
6788University of St GallenSwitzerland1048915866
68 Macquarie Graduate School of ManagementAustralia1204856111
6970Ohio State University: FisherUS10540910282
7081Wisconsin School of BusinessUS11067610092
7144University of Illinois at Urbana-ChampaignUS1112249469
7264Washington University: OlinUS1108108787
7391University College Dublin: SmurfitIreland1081546943
7395Babson College: OlinUS1199969515
7562AGSM at UNSW Business SchoolAustralia1097945988
76 SMU: CoxUS1102979940
7687Arizona State University: CareyUS1043569699
7875Boston University School of ManagementUS1097759753
7997Durham University Business SchoolUK963636628
8073University of Strathclyde Business SchoolUK988398032
8172University of British Columbia: SauderCanada954276771
8268Indian Institute of Management, BangaloreIndia134538755
8354University of Minnesota: CarlsonUS1122087565
8484University of Bath School of ManagementUK968465530
8555University of Rochester: SimonUS10832110283
86 Queen’s School of BusinessCanada923888672
86 University of AlbertaCanada9237095100
8662Pennsylvania State University: SmealUS10461210098
89 University of Notre Dame: MendozaUS1163949355
9068Melbourne Business SchoolAustralia964116096
9082Boston College: CarrollUS1138468080
9099George Washington UniversityUS1049948585
9384University of California, San Diego: RadyUS992007252
94100Vlerick Business SchoolBelgium1008097157
95 Birmingham Business SchoolUK1023676137
96 University of South Carolina: MooreUS925269762
9780University of Pittsburgh: KatzUS9216010586
9774Tias Business SchoolNetherlands922896774
9789Western University: IveyCanada969906879
10084McGill University: DesautelsCanada895106763