The Value of a Graduate Management Education
The value of a graduate management education remains strong. Insights gathered in the fall of 2015 from more than 14,000 business school alumni illustrate the continued strength of a graduate business degree as an investment that has a lifelong payback. More than 4 in 5 alumni are satisfied that their graduate management education met their investment expectations and was personally, professionally, and financially rewarding.
Overall ValueHow would you rate the overall value of your graduate business education? |
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The Value in 3D |
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Assessing the ROI, or value, of a graduate business degree requires consideration of not only the financial returns of the degree, but also returns in the form of personal development and expansion of professional knowledge, skills, and abilities. |
Personal% |
Professional% |
Financial% |
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Percentage of alumni who consider their degree rewarding on three dimensions. |
Return on Investment (ROI)ROI three-years post-graduation |
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The basic formula for calculating the ROI of a graduate business degree states that the ROI equals the return acquired from an investment minus the cost of the investment, divided by the cost of the investment. A value of 0% represents the investment fully recouped. |
Net Promoter® Score (NPS®) |
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NPS can be as low as -100 (everyone is a detractor) or as high as +100 (everyone is a promoter). Any NPS that is positive (higher than zero) is thought to be good; and NPS of +50 is excellent. Across program types, alumni overall NPS score was +45, a strong indicator they are likely to recommend their program to a peer. |
Added Value |
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Percentage of alumni who agreed they achieved various educational outcomes. |
Source: Alumni Perspectives Survey 2016.
Prospective students can learn more at mba.com. Additional information is available for schools at gmac.com/alumniperspectives .
Net Promoter® is a registered trademark of Satmetrix Systems Inc. NPS® is a registered trademark of Bain & Company, Satmetrix Systems Inc., and Fred Reichheld.