Tag Archives: Chicago Booth School of Business
March 21, 2016
This post originally appeared on Stacy’s “Strictly Business” MBA Blog on U.S.News.com An MBA is a long-term financial investment, so here are three questions to ask when trying to decide whether going to business school …
This post originally appeared on Stacy’s “Strictly Business” MBA Blog on U.S.News.com
An MBA is a long-term financial investment, so here are three questions to ask when trying to decide whether going to business school makes financial sense: Will the degree result in a significant salary bump? Will the degree help me switch careers? Will the degree help me get to a leadership position faster?
While it can be daunting to pay hundreds of thousands of dollars to earn an MBA, most business school graduates experience a substantial salary increase. The vast majority report having greater job satisfaction and the ability to advance quickly and, therefore, earn more in shorter time.
The Graduate Management Admission Council, which administers the GMAT exam, gathered input from b-school alumni worldwide in late fall 2015 to shed light on the issue of return on investment for its “2016 Alumni Perspectives Survey Report“, released in February.
Among the 14,279 business school alumni who participated in the survey, 75 percent say their graduate management education was financially rewarding, and 93 percent say they would pursue the degree again if given the choice. Although graduates considered three main areas when assessing their return on investment – expansion of knowledge/skills, personal development, salary increase – we’ll stick to just the financial aspect for this post.
Calculating the return on investment requires a simple formula. It’s the return acquired from an investment minus the cost of the investment, divided by the cost of the investment. Students of two-year MBA programs typically have the largest investment expense because they miss two years of employment. They need to recoup the cost of the MBA degree plus the opportunity cost in order to get a positive return on their investment.
Let’s consider the applicant who currently earns $70,000 a year and has landed a seat at the University of Chicago Booth School of Business. Tuition and expenses for the two-year MBA program at Booth will be about $200,000. She earns $15,000 during her summer internship, and her first year post-MBA salary in management consulting is $160,000 plus a signing bonus of $25,000.
This student’s opportunity cost – $143,500 in salary over two years – plus out-of-pocket expenses for tuition, etc. totaling $200,000, minus internship earnings, equals a total investment of $328,500. If she had not gone to business school and earned a typical annual salary increase of 5 percent, five years later she would be bringing home just more than $85,000 annually and would have earned $386,795 during that five years.
If she does the MBA, forgoes salary for two years, and earns at minimum a 5 percent increase over starting salary annually, she will earn $185,000 her first year and at least $529,400 for those same five years. More often, periodic bonuses and larger-than-average salary bumps mean that alumni frequently recoup their business school investment less than four years after graduation, GMAC reports.
GMAC found that more than 20 years after graduation, business school alumni earn a median cumulative base salary of $2.5 million. This is $500,000 more in cumulative base salary than they would earn if they did not go to graduate business school and consistently received 5 percent annual salary increases, and nearly $1 million more than if they did not go to business school and consistently received 3 percent annual salary increases over 20 years, the GMAC report says.
Prospective students should consider payback time with projected cumulative growth, and average growth rate, when looking at return on investment as a motivating factor for pursuing an MBA. But keep in mind, the value of the MBA degree varies widely depending on your post-graduation plans, as well as the brand ?of the business school where you earn the degree.
When it comes to deciding whether business school makes sense for you, remember that the choices you make – ranging from the cost of the city you decide to live in, the field you move into, the school you choose – will all impact your financial return on investment.
Your personal return on investment, however, is something quite different. Having the ability to transition into nonprofit PR marketing or some other lower-paying but more personally rewarding job may be well worth it – and that kind of personal satisfaction cannot be measured in dollars and cents.
March 16, 2016
U.S. News & World Report today released the 2017 Best Graduate Schools rankings, designed to help prospective students research programs across six disciplines and evaluate the potential return on their investment. In the full-time MBA …
U.S. News & World Report today released the 2017 Best Graduate Schools rankings, designed to help prospective students research programs across six disciplines and evaluate the potential return on their investment.
In the full-time MBA rankings, Harvard University is the No. 1 program in the country. The University of Chicago—Booth moves up two places to tie with Stanford Graduate School of Business at No. 2. This is Booth’s highest placement ever in this list, and the first time in seven years that Stanford GSB has been knocked out of the first place ranking held either on its own or tied with another school.
Yale School of Management, meanwhile, has achieved its highest ranking ever on this list, tied for eighth place with Dartmouth’s Tuck School after finishing at No. 13 last year. For anyone wondering what happened to NYU Stern School of Business, which ranks 20th this year, according to a blog post by US News’s rankings guru Bob Morse, it’s because Stern did not provide complete data in time for use in calculating the rankings.
Among part-time MBA programs, the Haas School of Business at the University of California—Berkeley remains No. 1, Chicago Booth comes in second, Kellogg School of Management is No. 3, UCLA Anderson School of Management is No. 4, and Michigan Ross School of Business rounds out the top five.
The six graduate disciplines U.S. News ranks annually are evaluated on factors such as employment rates for graduates, starting salary and standardized test scores of newly enrolled students. Because each graduate program is different, the rankings methodology varies across disciplines.
Different output measures are available for different fields, U.S. News explains, saying that in business, they use starting salaries and the ability of new MBAs to find jobs upon graduation or three months later.
“Going to graduate school is a major commitment of time and money,” said Anita Narayan, managing editor of Education at U.S. News. “Our rankings and advice offer guidance throughout the decision-making process to help prospective students and their families find the right fit.”
Image credit: Michael A. Herzog (CC BY-ND 2.0)
March 3, 2016
While you don’t need to have your career goals set in stone when you apply to business school, you should have a very clear idea of how the MBA degree will help you prepare for your future career.
The full-time MBA admissions blog at Chicago Booth School of Business has published an informative and insightful post written by Nima Merchant, a new member of the admissions team who has just transitioned from Booth’s Career Services employer development department.
“I’ve gained a very clear perspective of what employers who hire at Booth are looking for — and how those values can be important to highlight in your application.”
Merchant suggests applicants start by studying the Booth Full-Time MBA employment report. You can get an overview of the career paths students pursue under the Profiles tab, and the Employers section details the top companies recruiting at Booth.
You’ll see trends in the career interests of students through the Function and Industries tabs, which provide a break down of full-time positions and internships accepted—plus salary ranges and the number of hires per company.
The report also shows where students find work, and the Job Source section indicates that more than 75% of all employment offers last year were facilitated through Booth, which Merchant calls a “glowing example” of the powerhouse that is the Chicago Booth alumni network.
As you prepare your MBA applications, think about your future career goals, how the program can help you reach those goals, and what you will contribute to the school as well.
“It will be essential for you to connect with students and alumni to get their personal perspectives how the MBA, and Booth, helped them get where they wanted to be,” writes Merchant.
To that end, here’s a link to Chicago Booth’s upcoming online chats, where you can engage with current students and career services staff to get answers to all of your burning questions about the resources and opportunities available at Booth.
image courtesy of Chicago Booth School of Business
January 19, 2016
The Chicago Booth School of Business has debuted a scholarship program designed to support advanced business education in the nonprofit and government sectors. The new Civic Scholars Program, funded in part by a $4-million gift …
The Chicago Booth School of Business has debuted a scholarship program designed to support advanced business education in the nonprofit and government sectors.
The new Civic Scholars Program, funded in part by a $4-million gift from the Neubauer Family Foundation, will provide full-tuition scholarships every year to Chicago Booth’s Weekend MBA Program for eight professionals working in the nonprofit and government fields.
Known as Neubauer Civic Scholars, students in the program will continue working full-time as they pursue their degrees, allowing them to apply their classroom experiences to their workplaces.
Traditionally the public and nonprofit sectors are underrepresented in MBA programs, but with the Civic Scholars Program, Booth can tap the potential of professionals in these fields. No other world class business school currently offers as comprehensive a program for civic leaders.
“This is an opportunity to strengthen the development of future leaders from the public and nonprofit sectors across the United States, and Booth’s data-driven and collaborative approach will help these professionals drive change within their organizations that has a dynamic impact,” says Joseph Neubauer, MBA ’65.
“The same leadership skills are required to run all enterprises regardless of sector, which is why we are particularly excited to provide this opportunity to those who are the best and brightest in their chosen fields to strengthen the critical business and analytical skills required to run their organizations,” he adds.
The program will bring important voices to the classroom and community by providing broader perspectives on issues such as understanding the role of business in society, the implications of expanding public-private partnerships, and the opportunities for business leaders to engage productively with government and nonprofit organizations.
Neubauer Civic Scholars will be subject to the same curriculum requirements as all students in Booth’s MBA Programs, and ideal candidates will have approximately six to ten years of professional experience when applying to the program.
In addition to the core curriculum, they will have new, experience-based courses designed exclusively for the program that allow them to work in small teams on research and consulting projects for social sector and government organizations, as well as on individual projects at the Civic Scholars’ own organizations.
Additionally, a platform of curricular and extra-curricular programs exclusive to Neubauer Civic Scholars will be developed with the goal of fostering the group’s connections with each other as well as enhancing the educational experience.
The Civic Scholars Program will partner with other Booth research centers such as the Stigler Center for the Study of the Economy and the State, Social Enterprise Initiative, and the Harry Davis Leadership Center, as well as faculty from the University of Chicago’s Harris School of Public Policy, on curricular and co-curricular programming.
“We are very grateful for the pledge from the Neubauer Family Foundation to create the Neubauer Civic Scholarship Fund,” says Booth Dean Sunil Kumar. “This investment will allow Chicago Booth to provide select students from the nonprofit and public sectors the same discipline base and leadership tools we offer to business leaders. In time, this will help the school broaden its impact into these sectors, by building a community of talented and well-trained alumni.”
Image credit: Adam Fagen (CC BY-NC-SA 2.0)
January 8, 2016
Earlier this week, we launched a Words of Wisdom (WOW) campaign on our social media streams. Have you seen it yet? The goal is to galvanize potential MBA candidates with inspirational quotes from the top …
Earlier this week, we launched a Words of Wisdom (WOW) campaign on our social media streams. Have you seen it yet? The goal is to galvanize potential MBA candidates with inspirational quotes from the top business schools and our educational partners, and we’ve had a tremendous response!
More than 12 elite MBA programs, and organizations such as Forté Foundation and the MBA Tour, will chime in with their thoughts on topics such as how to conquer the GMAT, solve the thorniest business problems, manage your time, and be true to your values.
Every Friday for the next month, we’ll provide a roundup of these motivational messages here on the blog, but you can see them right away on Facebook, Twitter, and Instagram. Use the following hashtags: #WOW #WordsofWisdom #SBCWOW #MBAinspiration and #BeInspired to check it out each day.
We hope these messages inspire you to make 2016 your best year ever!
“We all live by a set of core principles. Make sure that one of yours is to choose graciousness in all that you do.” Mike Rielly, Assistant Dean, The Berkeley MBA For Executives, UC Berkeley Haas School of Business
“Your best preparation includes learning how to fully engage in your own learning process.” Bara Sapir, CEO/Founder of Test Prep NY/SF
“What is happiness? Three things: good health, meaningful work, and love.” Richard Shell, Professor of Legal Studies and Business Ethics at The Wharton School. Author of numerous books including Springboard: Launching Your Personal Search for Success
“Research tells us that women tend to opt out of opportunities where they do not feel 100% qualified. The truth is that there is no one ideal MBA candidate profile. There’s also no one ideal business school. Opt yourself in to this process. Explore a variety of schools, and find which one is the ideal fit for YOU.” Krystal Brooks, Associate Director, Early Career Women at Forté Foundation
“Be a force for intellectual honesty in public discourse — be true to your values, respect the differing values of others, and be willing to change your views in the face of new analysis and evidence.”Professor David Besanko, Kellogg School of Management
“The GMAT is like a first date: first impressions matter, but you must be on the top of your game throughout the entire time.” The Economist Test Prep
“When solving problems, it’s easy to come at them and say ‘I need to fix this.’ Instead, take the time to question the problem itself.” Christina Hachikian, Executive Director, Social Enterprise Initiative, Adjunct Assistant Professor of Strategy, The University of Chicago Booth School of Business.
“Time management is key. Start the application process early, and make sure to plan ahead for any unforeseen delays.” The MBA Tour