The Ranking Paradox: Why Business Deans Invest in Flawed Rankings

Strategic Insights -

Canadian business schools are among the leaders in the world of business education, with many institutions being highly ranked in various global MBA rankings. However, a closer look at the data reveals a paradox - while business deans publicly dismiss the rankings as flawed, they simultaneously invest significant resources in improving their school's ranking. This phenomenon is rooted in the financial pressure of relying on international student tuition to support domestic students and academic programs.

Key Takeaways:

  • Canadian universities rely heavily on international student tuition, with this revenue increasing from 14.4% to 25.6% of total revenue between 2000 and 2021.
  • Business deans in Canada invest significant resources in improving their school's ranking, often through dedicated data analysts and media relations teams.
  • Despite public skepticism about rankings, every dean interviewed could point to concrete ways their schools invest in them.
  • Current MBA ranking methodologies have significant blind spots, favoring certain types of programs while potentially disadvantaging schools serving different missions or regional economies.
  • Rankings do not capture essential aspects of business education, such as teaching quality, mentorship, curriculum innovation, and the potential for graduates to become ethical leaders.
  • Academic research shows that ranking systems distort institutional behavior and ignore social impact and educational quality.

Statistics:

  • 25.6% of total revenue at Canadian universities comes from international student tuition (between 2000 and 2021) [1].
  • 14.4% of total revenue at Canadian universities came from international student tuition in 2000 [1].
  • 70,000 CAD is the approximate tuition paid by domestic students for an MBA program at the Rotman School of Management at the University of Toronto [2].
  • 109,000 CAD is the approximate tuition paid by international students for an MBA program at the Rotman School of Management at the University of Toronto [2].

Sources:

  • [1] Catherine Heggerud, Associate Professor (Teaching), Haskayne School of Business, University of Calgary.
  • [2] Rotman School of Management at the University of Toronto.
  • [3] University of Toronto.
  • [4] The Conversation Canada.
  • [5] Rockefeller Institute