Ranking Masters in Finance Programs

The Financial Times Ranking of Masters in Finance Programs

Don’t want to spend two years in business school? Looking to focus on one specific area of the business? If that’s the case, you may want to join the growing legion of students enrolling in specialized masters programs.

According to the 2014 Prospective Student Survey, the Graduate Management Admission Council found that 20% of all GMAT test-takers were focused exclusively on a specialized masters. That was up from 13% over the previous year (with test takers devoted to the MBA declining from 55% to 53%). Even more, it was female candidates driving this trend, outpacing men 27% to 15% among those targeting a master’s degree.

For many, the appeal is obvious. Let’s start with the commitment, which is usually 12-16 months, as opposed to a two-year MBA (making it less costly in many cases). Master’s programs also require less work experience and allow students to play to their academic strengths. Plus, certain disciplines, such as finance and human resources, require more in-depth technical knowledge than areas like marketing or management. And there’s no better program for preparing students for the three CFA level tests than a Master’s in Finance.

Of course, master’s programs also carry distinct disadvantages compared to MBAs. For starters, an MBA’s broad-based curriculum exposes students to all facets of business operations, producing more well-rounded employees. In fact, MBAs can receive in-depth training in certain areas, such as finance or logistics, giving them the best of both worlds. Most important, MBAs enjoy greater flexibility, whereas a finance specialist also risks being pigeonholed in their role, even as their career progresses.

Make no mistake: A Master’s degree in finance is a valuable credential in the business world. And that’s especially true in finance (and particularly true overseas). For the latter, consider this study by eFinancial Careers, which shows the degree being quite helpful for entrance into the investment banking sector. That said, the salaries are significantly lower than they are compared to starting offers for graduating MBAs. According to the Financial Times, graduates were earning an average of $64,000 three years after graduation (with American graduates averaging $87,000). How does that compare to MBAs? At the top 50 American MBA programs, starting salaries range from $87,198-$138,346…to start.

Advantage MBA.

This week, the Financial Times released its annual ranking of Master’s in Finance programs, a largely European-centric list because many U.S. schools see little reason to participate in this beauty contest. The publication conducts two rankings: Pre-experience (programs where students possess little to no background in finance) and post-experience (programs comprised of students who have already worked in the financial sector. It’s interesting to note that U.K. pre-experience programs represent 31% of the ranked list, while U.S. pre-experience programs represent only 17% of the ranked list, especially since New York and not London has long been the financial capital of the world.

In any case, here is how schools become eligible to be ranked. The Financial Times’ surveys to alumni of participating schools must be answered by at least 20% of the alums with a minimum of 20 responses for a program to be ranked. This year, the FT surveyed 4,120 graduates from pre-experience programmes and 433 graduates from post-experiences programmes. The two surveys achieved a response rate of 42% and 39%, respectively.”

Some 55% of the weight in the survey are on six criteria, including salary, placement, and international mobility. The remaining 45% comes from school-provided data such as “diversity of teaching staff, board members and finance students, according to gender and nationality, and the international reach of the programme.”

For the fourth consecutive year, the London Business School topped the list of post-experience programs. Their graduates earned $129,741, on average, within three years of graduation. In surveys, the school ranked #1 for fostering career progress and providing value, while ranking #2 in career services (“placement”) and aims achieved. The University of Cambridge, which was unranked last year, jumped to #2 in 2014, with graduates earning $119,992 after three years. Two American programs – the University of Illinois and Florida International University, ranked #3 and #5 respectively.

Among pre-experience programs, HEC Paris ranked #1 overall, placing #1 in the value survey. Here, graduates earned an average of $90,798. Esade, Edhec, Essec, and IE Business School rounded out the top five. MIT Sloan ranked as the top American school at #10. However, it posted the highest average salary among pre-experience programs at $106,502. Boston College, which ranked #21 on this list, produced the second-highest salaries at $94,750.

To see the Financial Times’ Masters in Finance rankings, check out the next page.

DON’T MISS: Guide to the Best One-Year MBA Programs

Post-Experience

(Source: Financial Times)

Pre-Experience

(Source: Financial Times)

Source: Financial Times

How Business Schools Come Up With Their Questions

It’s never easy to get to know someone…really know someone, that is. That’s why companies have developed so many hurdles in their hiring process. You’ve probably heard of them all: Multiple Interviews, field projects, psychological tests, and even the dreaded dinner interview. They’re all designed to scratch away at that protective shell, to flush out how a guy will react when it’s all-hands-on-deck or an ego must be sublimated for the greater good.

It’s no different with business school applications. Some students parse every word, worried that the slightest misstep could torpedo their chances. Others rely on consultants to help them zero in on their schools’ cultural touchstones. Despite reading the right phrases and themes, many adcoms still wonder, “Is this person just telling us what we want to hear?” More important, “Will he revert to being who he really is once he’s accepted?”

That’s one reason why admissions essays are being cut down or changed dramatically. Adcoms are tinkering with the format, expectations, and even the medium to make candidates more uncomfortable. Take MIT’s Sloan School of Management. This year, students aren’t writing about defining moments or where they hope to be in ten years. Instead, they are answering this question: “Write a professional recommendation on behalf of yourself.” Inspired by Sloan’s tradition of having employer write self-reviews, the question is designed for students to assess themselves from the perspective of their boss. “Sometimes recommenders do a much better job selling candidates than candidates themselves,” says Rod Garcia, senior director of admissions at Sloan. “The candidates undersell themselves, so sometimes we’re not getting the information that we’re looking for.”

Another strategy? Use a medium other than an essay for candidates to sell themselves. And Northwestern’s Kellogg School of Management has grown famous for requiring a video essay. Here, students answer two questions, each lasting a minute. Why? For starters, the process gauges preparation. Candidates can practice speaking to a camera in one minute increments before the interview. If they struggle, it could reflect poorly interpersonal communication skills…or show a lack of seriousness about the opportunity. As Kate Smith, Kellogg’s assistant dean for admissions and financial aid, tells Bloomberg Businessweek, MBAs need to become comfortable with a camera in the spotlight. A live video interview tests this (along with the ability to be succinct and engaging).

Of course, off-the-wall questions, video interviews, and PowerPoint presentations are just a means to get to the real person who’ll spend two years in the program (and ultimately represent it over their careers). Make no mistake: The old days of cookie cutter questions are over. In fact, expect plenty of experimentation over the coming years. As Liz Riley Hargrove, associate dean for admissions at Duke’s Fuqua School of Business, notes: “People would be surprised how much admissions directors talk.”

And they may be even more surprised how quickly successful ideas travel between schools.

Source: Bloomberg Businessweek

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Who Have Goldman Sachs, JPM and Morgan Stanley Hired as MBA Summer Associates?

Ever wonder who was hired for a job you interviewed for? Alas, employers rarely tell you who got the job; you often wait for a friend to call or see a Linkedin update for that. Even when you hear, you still shake your head and ask why. Was it their background or temperament…or just another case of the old boy’s club in action?

“It’s just business, nothing personal.” That’s what they say in the movies. In real life, hiring decisions are real personal. If you’ve plunked down $100K for an MBA, a summer internship is your shot at the big time, especially if you want to work for one of the big investment banks.

So who is getting hired this summer for coveted summer associate openings? This year, eFinancial Careers spilled the secrets of Goldman Sachs, J.P. Morgan, and Morgan Stanley. Not surprisingly, these firms are hiring the best students from the best programs, notably Harvard University, Stanford University, Columbia University, INSEAD, the London Business School, Wharton, and Kellogg. Specifically, these are the types of candidates these firms are hiring as associates:

• Goldman Sachs: “The 2014 summer associate class at Goldman Sachs includes its fair share of career-changers, with ex-structural engineers seeming to be a favourite… In New York, you’ll find a former spinning instructor from Seattle who’s completing an MBA at the Tuck School of Business, and an-ex officer in the German army who worked as an analyst for RBS and Rothschild before embarking on an MBA at the Haas School of Business in Berkeley.” In addition, the firm has hired a former strategy consultant with McKinsey & Co. and Roland Berger.

• Morgan Stanley: “Morgan Stanley’s 2014 summer associate class contains several career bankers…There’s a former member of UBS’s ‘strategic analysis group’ who’s gained a summer internship in investment banking whilst studying an MBA at LBS. There’s also a former corporate strategist from Citigroup, who’s done much the same. Several of Morgan Stanley’s summer associates are full CFA Charterholders, suggesting the bank rates the qualification and all the hard work it entails. In New York, you’ll find a former senior consultant from Booz & Co, who’s studying an MBA at Harvard. In California you’ll find a former law clerk who switched into ‘product development and monetization’ at a gaming company and is now completing an MBA at Stanford and working in the technology investment banking team for the summer.”

• J.P. Morgan: “…as long as you have solid academics and big name schools on your resume, JPMorgan is seemingly willing to think creatively when it comes to recruiting summer MBAs. This year, for example, it hired a former physician in the UK’s National Health Service who’s studying an MBA at Wharton after working for a cancer diagnostics company. It also has a former operations director for a chain of cinemas who’s working in New York on the finance associate leadership programme. In London there’s a former commercial director for an online gaming company who’s studying an MBA at London Business School. – With Morgan Stanley also hiring summer MBAs with gaming experience, it looks a little like a stint in online gaming, followed by an MBA, followed by a switch into banking, is becoming a thing.”

That said, the popularity of bulge bracket investment banks may be waning, according to the latest MBA employment survey conducted by Training the Street (TTS). In this June’s results, TTS found consulting has overtaken bulge bracket banks by a 25-to-22 percent margin. These banks have also seemingly pulled back on MBA recruiting. TTS survey responses showed that only 41 percent of participants had been recruited by bulge bracket banks (a seven percent drop over the previous year). Conversely, 48 percent had been approached by consultants, a 14 percent increase over the previous year. Entrepreneurs have also curtailed the recruitment efforts towards MBAs, with 2014 numbers slipping from 22 percent to 15 percent.

Here are some additional results from this year’s TTS MBA survey:

• 60 percent of respondents were “Very Optimistic” about their job prospects after graduation (a 12 percent increase). Another 29 percent were “Somewhat Optimistic,” with only 4 percent being “Very Pessimistic.”
• 48 percent of respondents with job offers received starting salaries from $100,000-$125,000. Another 26 percent accepted offers of greater than $125,000.
• 40 percent chose New York City as their ideal location, followed by the San Francisco area (22 percent) and Chicago (10 percent).

Source: eFinancial Careers, Marketwatch

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Make Yourself Into a Great MBA Candidate in Three Years

“It’s a marathon, not a sprint.”

Ever receive that advice? Like me, you were probably moving too fast, overlooking the details or underlying questions. And this caution was a reminder: The result is only as good as the process.

This same wisdom pertains to your business school application. After graduation, you probably mapped out the coming years. You’d land a decent job, build up your savings, climb the ladder, and then head back to an MBA program. Pretty good plan, actually. Just one hitch: Sometimes, we get so tangled up in the minutia – our assignments, relationships, and routine – that we forget the bigger picture. If your heart is set on business school, that means building a track record in leadership, and community service (along with a deep network).

In a recent column with Bloomberg Businessweek, Stacy Blackman, an admissions consultant and author of The MBA Application Roadmap, shared how you can position yourself for graduate school during those post-graduation years. Here are her ideas for increasing your chance for acceptance:

• Focus on Career Progression: “Have you been in the same job, at the same level, for several years? If so, take on more senior responsibilities. Volunteer to mentor a new worker. Ask to be placed on a high-level project. Or take on a job that no one else wants.

Many applicants hope that taking a new job prior to applying will round out their experience. But if it doesn’t make sense in the context of your career goals, it could do more harm than good. You want to show that you’re focused and doing what you can to progress toward your stated goals—not just focused on landing a great job.”

• Structure Your Down Time: “If your application is a little lean when it comes to meaningful activities outside of work or school, now’s the time to get involved in a cause you care about. Look for community service groups in your town. Think about activities you participated in as an undergrad and get reengaged. It’s a plus to show continuity and commitment to your interests over time.

If you’re already involved, know that the quality of your contributions is important. It’s great to have been volunteering at a soup kitchen for the past year. But if you can say that you conceived of and led a program to increase donations or raise awareness for the soup kitchen, so much the better. In and outside of work, any leadership role will be an asset.”

• Burnish Your Academic Credentials: “If you have a below-average GPA or low grades in quantitative/business classes, consider taking a course to prove that your academic skills have improved. You want to show business schools you’ll be able to handle their program, that you’ve taken steps to build skills that may have been lacking, and that you are mature enough to balance academics with other activities.”

To read all of Blackman’s insights, click on the Bloomberg Businessweek link below.

Source: Bloomberg Businessweek

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Blast from the Past:

Is the GMAT the Root of Business Evil?

You could describe the GMAT as the gatekeeper to business school. It is the one tool that allows adcoms to measure candidates side-by-side. The test doesn’t weigh experiences or achievements. Instead, it evaluates test-takers’ ability to analyze and solve problems. In theory, the GMAT places everyone on the even footing, to assess how they’ll likely perform in a business school setting.

“In theory” is the key phrase here. Sure, the test is the best predictor for business school success. But what if a GMAT score also reflects a candidate’s propensity towards the worst behavior? Those were the findings of a former business school dean in a 2013 paper published in the Journal of Business Ethics. Here, the study found that higher GMAT scores correlated to poor ethics, risk aversion, and selfishness. So what, specifically, did the study determine? And what are its implications to admissions policies? Check out the article below for the answers. .

Source: Poets and Quants

Video of the Week

Top 10 Myths of MBA Applicants

Source: Beat the GMAT

One Liners:

Why You Shouldn’t Put MBA After Your Name

Source: Fast Company

DePaul Survey: A Crisis of Engagement at Business Schools?

Source: Business Education Insider

Why You Shouldn’t Get an MBA Before You Turn 25

Source: Linkedin

How the Next Month Will Determine Your Round One Fate

Source: Forbes

5 Essential Elements of a Perfect MBA Resume

Source: Beat the GMAT

How MBAs Can Help Your Startup

Source: Entrepreneur

Should Business Schools Include Corporate Names?

Source: Bloomberg Businessweek

11 Options For MBA Grads to Launch Their Careers

Source: Huffington Post

Addressing the Most Common Questions in an MBA Essay

Source: Beat the GMAT

Business Schools Getting Smarting About Weeding Out Uninterested Applicants

Source: Bloomberg Businessweek

Remembering The Lessons Of Harvard Business School Professor Chris Argyris

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The B-School That Won’t Take Tuition Until You Land a Job

Source: BusinessBecause

Arizona State and Thunderbird Talking About Potential Merger

Source: Phoenix Business Journal

How To Choose a GMAT Class or Tutor

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Using Linkedin to Connect with Alumni

Source: GMAC

Want a Consulting Career? Set Up Your Own Firm

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MBA Humor

You know you’re an MBA when….

You ask the waiter what the restaurant’s core competencies are.

You decide to re-org your family into a ‘team- based organization.’

You refer to dating as test marketing.

You can spell ‘paradigm.’

You actually know what a paradigm is.

You understand your airline’s fare structure.

You write executive summaries on your love letters.

You think it is actually efficient to write a ten-page paper with six other people you do not know.

You believe you never have any problems in your life, just ‘issues’ and ‘improvement opportunities.’

You calculate your own personal cost of capital.

You refer to your previous life as ‘my sunk costs.’

Your three meals a day are a ‘morning consumption function’, a ‘noontime consumption function’, and an ‘even consumption function.’

You start to feel sorry for Dilbert’s boss.

You refer to divorce as ‘divestiture.’

Your favorite artist is the one who does the dot drawings for the Wall Street Journal.

None of your favorite publications have cartoons.

You account for your tuition as a capital expenditure instead of an expense.

You insist that you do some more market research before you and your spouse produce another child.

At your last family reunion, you wanted to have an emergency meeting about their brand equity.

You decided the only way to afford a house is to call your fellow alumni and offer to name a room after them if they help with the down payment.

Your ‘deliverable’ for Sunday evening is clean laundry and paid bills.

You use the term ‘value-added’ without falling down laughing.

Source: Yamanoor

Tweets of the Week:

Elliot Lerner ‏@eleeot 

Just hanging out near the business school graduation, tryna find me a future CEO i can wife up #MBAyyyLetMeHolla

jasmine ‏@jasfancourt
“Our business school is eco friendly so it’s all made out of glass, so no naughty stuff can happen in the offices or everyone will see”