If Business Schools Were Investors: A Strategic Approach to MBA Applications

If Business Schools Were Investors: A Strategic Approach to MBA Applications

One of the most common questions I receive from prospective MBA applicants is whether business school applications vary between schools. While many institutions encourage a completely personalized approach, the reality is that many top-tier business schools follow similar strategic patterns in evaluating candidates. To help applicants understand the process, I often use a metaphor to describe how schools behave when reviewing applications.

Conservative Investors: Traditional Business Schools

Most business schools function like conservative investors. These schools prioritize stability and gradual growth, avoiding high-risk or volatile ventures. Their primary goal is to ensure that their graduates secure employment in reputable companies, with a focus on career placement and ensuring that at least 90% of their graduates are employed within three months of graduation.

Top schools like INSEAD, LBS, Columbia, Tuck, and Kellogg fall into this category. They prefer candidates who present clear, well-defined career goals with an emphasis on steady, traditional career paths, often in consulting, finance, or general management. For these schools, the application should focus on career progression, stability, and predictability, with a strong GMAT score acting as a key indicator of academic ability.

For applicants with limited exposure to entrepreneurship, I recommend focusing on your existing skills and career trajectory. Schools like these are not as inclined to take risks on unproven entrepreneurial ventures unless you have a robust entrepreneurial background. GMAT performance is essential here, as it helps reduce the risk exposure for these schools, serving as a reliable predictor of academic success.

Balanced Investors: Schools with More Risk Tolerance

The next category includes business schools that behave like balanced investors. These schools still prioritize solid, long-term growth but are open to slightly higher volatility in their portfolio. They value creativity, innovation, and are more willing to take risks. There are two main types of schools in this category.

1. Elite Programs with a Lean Toward Venture Capital:Institutions like Wharton and MIT Sloan fit this description. While these schools have strong placement rates in top-tier firms, they are also moving towards the venture capital space. Applicants to these schools should still use a conservative approach, but for candidates with a lower GMAT score, the focus should shift to emphasizing their entrepreneurial vision and potential. We’ve seen successful admissions into these schools even with mid-600 GMAT scores, but such cases are rare in more conservative schools like INSEAD or LBS.

1. Younger and Less Established Schools:Schools like IE Business School, Oxford, and Yale are willing to take on more risk in order to increase their brand’s visibility and attract diverse talent. These schools often attract family business owners and aspiring entrepreneurs to their classrooms, making up for their relatively lower placement rates in top-tier firms. These institutions still focus on employability, but they are more accepting of applicants with entrepreneurial aspirations.

VC Funds: The Stanford and Harvard Approach

At the pinnacle of the business school world, Stanford and Harvard Business School (HBS) operate much like venture capital funds. These schools aim to educate leaders who will change the world, taking a strategic approach that involves high-risk investments in individuals who show the potential to make a significant impact. Although many early-stage ventures may fail, these schools understand that a single success — such as the rise of Oscar Health Insurance, Grab, or GoJek — can more than make up for the losses.

Both Stanford GSB and Harvard place a strong emphasis on impact and leadership, making them ideal for applicants with innovative ideas and a strong sense of purpose. While GMAT scores at these schools are generally high, they are known for making exceptions for outstanding candidates with unique, compelling profiles. In fact, 40% of applicants admitted to HBS and Stanford GSB had GMAT scores 30 to 100 points below the class average, showcasing that these institutions prioritize distinctive profiles and potential impact over test scores alone.

How to Apply: Crafting the Perfect Investment Pitch

Understanding how business schools behave like investors can significantly enhance your approach to the application process. By adopting the mindset of the schools you are applying to — whether they are conservative investors, balanced investors, or VC funds — you can craft an application that resonates with each program’s priorities.

For schools with a more traditional focus, emphasize career clarity and stability, backed by strong GMAT performance. For institutions with more risk tolerance, such as Wharton or MIT, highlight your entrepreneurial spirit and vision. For top-tier schools like Stanford and Harvard, showcase your leadership potential and how your goals align with making a global impact.