Haas NewsWire

Haas NewsWire, October 9, 1998

Busness Week Ranking Drops Haas Three Spots to Number Sixteen
A Haas Response to the Business Week Rankings
London Symposium Timely and Informative
Haas Program Gets High Ranks for Women and Asian MBAs
Netrepreneur Trevor Traina on Cover of Business 2.0 Magazine
New Global Resource on Web
Four New Faculty Join Haas this Fall
Awards & Achievements
Faculty News from the Dean's Office
Happening Next Week

Haas NewsWire Archive
Contact Haas NewsWire



The Haas School of Business has been ranked the 16th best US business school by Business Week (Oct. 19th issue) in its latest survey, which is based on opinions of 1998 MBA graduates and corporate recruiters. In the previous Business Week survey in 1996, the Haas School was ranked 13th best.

The change in the Haas ranking appears to be caused by a lower evaluation by MBA graduates of the program. The grad ranking for Haas is 14th place in the new survey; two years ago, graduate opinion gave Haas a ranking of 6th best among all business schools. Haas's corporate ranking, which is based on a survey of 259 unnamed corporate recruiters, remained the same at 16th place in this year's survey and in the previous one.

The Haas School's Career Center was ranked by students and recruiters as being the worst among the top 25 schools.

In conducting its survey, Business Week sent extensive questionnaires to over 9,500 graduating MBAs at 61 schools, as well as 350 companies that actively recruit MBA students. Graduates were asked to rate their schools on such issues as teaching quality, program content, and career placement. Recruiters assessed the skills of the students, and ranked business schools on their overall quality and the success rate of graduates in their organizations.

The entire Business Week ranking package is available on the magazine's Web site at http://www.businessweek.com/bschools/index.html, and also on Business Week Online on America Online. (The AOL Web site is free to Business Week subscribers.) A copy of the article will be posted on the bulletin board located on the third floor between the MBA student lounge and the computer center.

The complete Business Week ranking of the top 25 schools is listed below. Schools are listed in the order of their 1998 ranking. The numbers following each school represent the following: corporate rank - student rank - 1996 rank.

1. Wharton 1-2-1
2. Kellogg/Northwestern 2-6-2
3. Chicago 3-9-8
4. Michigan 5-3-2
5. Harvard 6-13-4
6. Columbia 4-21-6
7. Duke/Fuqua 7-10-11
8. Cornell/Johnson 11-4-18
9. Stanford 9-8-7
10. Dartmouth/Tuck 13-7-10
11. UVirginia/Darden 8-15-5
12. UCLA 18-1-12
13. NYU/Stern 10-20-14
14. Carnegie Mellon 15-5-17
15. MIT/Sloan 14-19-9
16. UCBerkeley/Haas 16-14-13
17. UWash in St. Louis 19-16-16
18. UTexas 12-26-20
19. UNCarolina Chapel Hill 23-17-19
20. Yale 27-11-22
21. UIndiana Bloomington 20-25-15
22. UMaryland 30-23-NA
23. UWisconsin Madison 17-32-NA
24. Purdue/Krannert 21-29-NA
25. USC/Marshall 55-18-NA

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Richard Kurovsky
Executive Director of Marketing and Communications
Haas School of Business

It is disappointing that the Business Week survey does not reflect the strengths of the Haas School, as well as the improvements and innovations that the School has achieved over the last several years. Haas has built a faculty that is among the finest at any business school. It attracts top students for its MBA Program from around the world; it is now, in fact, the second most selective business school in the US. If these fundamental indicators are very good now, the future looks even better for them.

Under Dean Tyson, the school is setting forth a large and ambitious agenda for continuous improvement, which will inevitably have a positive impact on how Haas is perceived. Among the changes being planned is a major restructuring of the School's Career Center, which will focus on improved services and greater outreach and marketing to corporate recruiters. Details will be announced shortly. Rankings in the future may very well pick up on these changes and initiatives, but the School is not tailoring its goals and objectives to affect a change in any particular ranking.

In the meantime, we should avoid reading too much into our showing in this or any other ranking. We must pay attention to them because they have become part of the environment in which we operate, and they have an influence on our markets. We attempt to learn what we can from them, and what they tell us about how we are perceived by various groups.

However, most rankings are problematic and should be viewed with some degree of skepticism -- even when we show well in them. The foremost problem involves inscrutable methodologies. The methodology employed by Business Week, for example, is considered proprietary and is thus only partially revealed. As a result, no one has ever been able to independently assess its validity. We don't know, for example, whether the differences between schools in the ranking are large or statistically insignificant.

Structural issues impact the results of rankings, as well. Schools with smaller enrollments and schools on the West Coast -- such as the Haas School -- are typically at a disadvantage in comparison with larger business schools out East. Many of these schools have two to four times more MBA students than the Haas School. They are also geographically closer to the major Midwestern and Eastern employment markets for MBA graduates, and can supply many more students to firms in these markets -- providing a clear advantage when corporate recruiters are part of the survey.

In addition, private business schools tend to dominate the Business Week survey, as well as other rankings. The reason has to do with the greater flexibility, autonomy, and higher levels of funding that private business schools enjoy within their universities; state supported schools have traditionally operated at a disadvantage. One of the top priorities of Dean Tyson is to gain a new level of flexibility and to generate higher levels of funding for the Haas School so that it can be more competitive.

Finally, the fairness of some rankings, including Business Week's, have been questioned because of alleged ethical improprieties at some schools. Jennifer Reingold, the editor in charge of the Business Week ranking project, admitted on-line Thursday that "we heard a few rumors this year that students at some schools were not answering the survey individually, but rather were trying to affect the result by skewing their results upwards." After an investigation, she said that data obtained from five business schools were adjusted because of suspicions of "gaming." (Haas was not among them.)

Varying methodologies also lead to variable results. For example, the US News and World Report survey a few months ago ranked Haas as the 10th best business school in the US. Working Woman magazine last month cited the Haas School as the third best US business school for women. Fortune Asia last week ranked Haas as the best US business school for Asian MBAs.

New rankings are on the horizon, including a ranking of international business schools by the Financial Times of London scheduled for early next year; another business magazine is considering a ranking based on a student's return on investment in their business school education. From a consumer standpoint, this conflicting array of information can become quite confusing.

The bottom line at Haas will be to remain focused on the fundamentals of a great business school and to achieve the goal of being among the very best in the world. This is the way of things at UC Berkeley, where an outstanding university demands nothing less than an outstanding business school.

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Last weekend (October 2-4), members of the Haas Alumni Network, Haas MBA exchange students in Europe, and European business leaders -- 120 people in all -- gathered in London for the Haas School's fifth International Symposium.

Berkeley faculty, including keynote speaker Laura D'Andrea Tyson, presented the latest thinking on global finance and information technology, while industry panelists and speakers shared their global perspectives. Other speakers included I-House alumnus Reinhard Schulte-Braucks, LLM 77, unit head of Improvement of the Business Environment, European Commission; best-selling European author Richard Hill; and Richard Straub, director of learning, IBM Global Sales & Distribution. "The information shared by the speakers couldn't have been more timely or valuable. The feedback has been fantastic," said Tenny Frost, director of Alumni Relations. Festive evening events at the Parliament's House of Lords and the newly restored Globe Theater rounded out the daytime London activities.

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Fortune Asia and Working Woman magazines ranked Haas number one and number three respectively in their recent B-School surveys. Haas tops Fortune's list of the 25 best US business schools for the growing number of Asians coming to the United States for an MBA. According the the October 12th cover story, the "rigorous but relaxed" academic environment and the integration of international material into all core MBA classes are part of what makes Haas such a good choice for prospective Asian students.

Laura Tyson, the only female dean of a major business school, a tenured faculty that is 19% women, and next weekend's Women in Leadership Conference were among the female-friendly criteria cited by Working Woman in their October issue.

Both articles are posted on the bulletin board located on the third floor between the MBA student lounge and the computer center.

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CompareNet CEO Trevor Traina, MBA 95, is featured in the October issue of Business 2.0 magazine. Traina and his comparison pricing Web site, CompareNet, are featured in this cover story about so-called "infomediarie" companies that focus on niche electronic commerce markets. Also mentioned in the cover story is Bay Area startup HomeShark, co-founded by Haas alumna Jenna Marshall, MBA 95. A copy of the article is posted on the bulletin board located on the third floor between the MBA student lounge and the computer center.

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Find all things global at http://Haas.berkeley.edu/HaasGlobal. Maintained by International Business Development Program Director Sebastian Teunissen, HaasGlobal is a clearing house of global links and information for anyone interested in the international learning opportunities and resources at Haas.

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Jennifer Berdahl joined the organizational behavior and industrial relations group (OBIR) as an assistant professor. Berdahl received her BA in psychology from Macalester College and recently completed her Ph.D. in psychology at the University of Illinois. She also holds a master's degree in labor and industrial relations, and has worked in policy and planning agencies for several years. Berdahl teaches the undergraduate core course on organizational behavior.

Jonathan Berk joined the finance group as an assistant professor. Born in South Africa and now a US citizen, Berk earned his MA and Ph.D. in finance from Yale University. Prior to Haas, he taught at the University of Washington, Washington University, the University of British Columbia, and UCLA. His research interests include both theoretical and empirical issues in finance, as well as general microeconomic topics. Berk is leading a doctoral finance seminar in the fall and will teach the undergraduate core course in financial management in the spring.

John Michael Quigley joined the Haas School this fall as part of a new joint appointment with the Goldman School of Public Policy and the department of economics. A professor at Berkeley since 1979, Quigley received his Ph.D. from Harvard in 1972. His current research focuses on public finance and public policy, especially the economics of housing and housing markets. This fall, Quigley is teaching an MBA elective on housing and the urban economy. The course is designed to serve students from the Haas School, the Goldman School of Public Policy, and the College of Environmental Design.

Xiao-Jun Zhang joined the accounting group as an assistant professor. Originally from the People's Republic of China, Zhang received his MA in economics from the University of Maryland and just completed his Ph.D. in accounting from the Columbia Business School. His research focuses on both the theoretical and empirical dimensions of financial accounting. Zhang teaches the evening MBA core course in managerial accounting.

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David Aaker has been invited to speak at the World Economic Forum in Davos, Switzerland, in January of 1999.

Jennifer Chatman received the L. L. Cummings Scholar Award from the Organizational Behavior Division of the Academy of Management. The award, sponsored by JAI Press, is designed to honor "an individual who, by mid-career, has produced research of exceptional quality, quantity, and impact."

Paul Gertler received an Academic Career Leadership Award from the US National Institute of Aging in the area of the economics and demography of aging. The $500,000 award is given over the course of five years to leading scholars in research on aging.

Stephen Penman shared this year's INQUIRE prize for his paper, "A Comparison of Different Approaches to Value Investing." INQUIRE is a group of quantitative investment advisors in the United Kingdom and Europe.

David Pyle was appointed executive secretary and treasurer of the American Finance Association (AFA).

Pablo Spiller was elected to the board of governors of the American Law and Economics Association for a three-year term.

David Teece delivered the 1998 Clarendon Lectures in Management Studies at Oxford University in May, where he discussed "The Knowledge Economy and Intellectual Capital Management," "Innovation and Business Organization," and "Intellectual Property, Technology Strategy, and Public Policy." He also spoke at 10 Downing Street in July on "Some Economic Aspects of Intellectual Property Damages."

M. Frances Van Loo received a gift from the San Francisco Foundation in support of "Experiential Learning Within the Field of Philanthropy," a project that trains Haas MBA students in nonprofit management classes to evaluate applications >from nonprofit agencies and decide on the award of actual cash grants.

David Vogel was chosen as one of the 100 most outstanding graduates by his undergraduate college, Queens College, City University New York, as part of its 60th anniversary.

Oliver Williamson is president-elect of the Western Economics Association as of July 1.

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Severin Borenstein - is the new chair of the economic analysis and public policy (EAP) group.

Glenn Carroll - is the new chair of the organizational behavior & industrial relations (OBIR) group.

Tulin Erdem - was promoted to associate professor of marketing with tenure.

Rashi Glazer - was promoted to full professor of marketing.

Benjamin Hermalin - was promoted full professor of economic analysis and policy.

Dorit Hochbaum - is the new chair of the manufacturing and information technology management (MIT) group.

Dwight Jaffee - was named Willis H. Booth Professor in Banking and Finance II.

Andrew Rose - was named Bernard T. Rocca Professor in International Business and Trade.

Carl Shapiro - succeeded Richard Sutch as director of the Institute of Business and Economic Research (IBER).

Richard Stanton - was promoted to associate professor of finance with tenure.

Oliver Williamson - will be the chair of the business and public policy (BPP) group for the fall semester, while Pablo Spiller is on sabbatical.

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The Haas NewsWire is the electronic news weekly for the Haas community published every Monday by the Marketing and Communications Office at the Haas School. Send your news, feedback, and suggestions to Haasnews@haas.berkeley.edu.

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