Why we did not go with Objective / Hard Data as a method for rankings?
Firstly if you haven't read it, here is a detailed description of our methodology -
PaGaLGuY.com - B-School Ranking Methodology
This is a question that's going to crop up very frequently here, so thought I'd write our take on this, and here it is:
Objective rankings parameterize the b-school experience mainly into:
1. Faculty
2. Placements
3. Infrastructure
4. Intellectual Capital
5. Student feedback
I'll take each of these parameters and put forward why we thought that this was a step backward rather than forward when rating business schools. Some of it is the biter truth, but it was important for us to cut the faff out in designing a rankings that was representative.
1. Faculty - objective rankings measure the number of years of teaching, number of PhDs, consulting experience, research, etc to rate faculty
Why it doesn't work - while there are a lot of PhD numbers in Indian b-schools, a PhD makes a difference if it is from a good university. In India, majority b-school faculty are recruits from the institute's own FPM programme, or from small town universities scattered across India. As for research, except in a few bschools in the creamy layer, there is little research of consequence happening in Indian bschools. Measuring faculty via hard data like trying to predict a cricketer's performance by measuring his vital statistics. Why fool ourselves of having ranked accurately through hard data?
Faculty that does make a difference in b-schools, and any b-school student would testify to that, is that which makes for a great classroom experience. Measuring that with hard data is not possible. Perhaps a perception survey of best profs in each b-school answered by the students, the results of which are integrated into a larger perception survey.
2. Placements - Cut-throat competition between b-schools has led to a situation where placements data shared by b-schools is suspect. We have seen deep enough into placements processes in b-schools to know that distorting facts to project higher average salaries is a game that has become a norm. Inflating the CTC, averaging by combining international salaries with domestic ones, over-highlighting certain data to hide some other data... the methods are as many as there are schools. The companies don't mid either because of the
PR they receive in the process. We think that in such a scenario, comparing b-schools through hard placement data will end up being an exercise in vain. In fact it would amount to construct a second lie over another.
3. Infrastructure - What exactly is good infrastructure and how does one rate it? India has 40 year old schools that have run-down campus buildings over several unused acres. Yet they probably provide better quality of education than a those with swank campuses. B-schools advertise various things like libraries with so many thousand journals, so many books, so many online subscriptions. You need to ask one b-schools student how much of all this is actually used by MBA students in Indian b-schools, outside the exceptions. As for the infrastructure that matters, Google is available across Indian b-schools.
4. Intellectual Capital - Not conclusively quantifiable except in maybe 10 b-schools.
5. Student feedback - is always good.
Moreover, hard data, unless primary and verified, is questionable. Objective rankings that exist today rely on questionnaires sent to b-schools, the answers of which are taken on face value. Visiting even 100 schools for verification is so humongous a task that nobody has yet taken it up.
We sincerely believe that coming out with rankings just for the heck of it is not worth anyone's time. We are further saying upfront that this is NOT the definitive rankings of Indian business schools. However is is definitely what India thinks about business schools.
Cheers,