WSJ's Top 10 Executive MBA Programs

Executive M.B.A. programs make a big promise: They'll turn up-and-coming managers into full-fledged leaders, showing them how to think strategically, inspire their staff and expand the business.

So, which schools do the best job of delivering on that bold talk? That's what we set out to measure in The Wall Street Journal's first survey of executive M.B.A. programs.

• PODCAST: Hear more about unorthodox teaching tactics used by executive M.B.A. programs, as improvisation guru Bob Kulhan talks with The Journal's Emily Glazer.

The Journal Report

• Unconventional offerings round out programs -- and students.
• Career advice used to be off-limits for executive M.B.A. students. No longer.
• Companies praise executive M.B.A. programs for making managers better -- and more loyal.
• If executives can't come to the school, the school comes to the executives.
• Advanced management programs aim to give elite executives high-end crash courses on crucial topics.
• By teaming up with institutions around the world, programs offer managers a more global education.
• Intrepid students commute up to 18 hours to attend their chosen executive M.B.A. program.
• See the complete Executive M.B.A. Rankings report.

Working with Management Research Group and Critical Insights, we asked thousands of students and hundreds of companies to rank executive M.B.A. programs in a host of categories, with a focus on how well they develop management and leadership skills. The result is a ranking of 25 schools world-wide that takes into account the rigor needed to build tomorrow's corporate leaders and C-suite executives.

Topping the list: Northwestern University's Kellogg School of Management, which ranked No. 1, and the University of Pennsylvania's Wharton School, which came in No. 2. The two schools have among the largest E.M.B.A. programs, with 406 students currently enrolled in Wharton's two programs and 843 candidates in the seven Kellogg programs, including three international partnerships and a satellite campus in Miami.

What set Kellogg and Wharton apart? The schools got high marks from companies -- nearly double those of their nearest competitors -- which gave them a clear lead overall. And those stellar grades far outpaced their lower marks from students.

Kellogg and Wharton were ranked at the top more often by companies by a wide margin over their competitors. What's more, corporate scores varied the most in our surveys, with the leaders outpacing the middle of the pack, and the middle schools leaving the laggards far behind. That variation and wide lead shifted the overall rank in favor of Kellogg and Wharton.

Sally Ryan for The Wall Street Journal

In contrast, student survey scores showed less variation. Kellogg, for example, which ranked No. 15 in the student survey, had a score much closer to that of the leading schools. In a few cases, like that of the No. 1 school in the student ranking, the University of North Carolina's Kenan-Flagler Business School, a school's student score was strong enough that the school made the top five.

In all, we surveyed 4,060 students and recent grads from 72 executive M.B.A. programs at 53 business schools in nine countries on how well their program enhanced leadership and management skills; 62% responded.

We also surveyed 455 human-resources and executive-development managers at companies across 23 industries, on the value of the education provided by E.M.B.A. programs. More than 200 officials completed the survey, for a response rate of 44%.

Last, we looked at how well the programs met employers' and graduates' expectations when it came to enhancing their management acumen. We measured what employers wanted out of the programs -- largely, improved management and leadership skills such as managing change and strategic thinking. Then we asked students how well their programs delivered those skills, and weighted their responses to arrive at a final score.

In all cases, survey questions were developed and survey results analyzed in collaboration with Management Research Group, Portland, Maine. To calculate the final ranking, the corporate and student ratings were each given 40% weight, and the skills rating 20%. (For more information on the methodology, please see "How the Rankings Were Compiled.")

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Wharton was No. 1 with companies and received top marks from students for its curriculum. The program "allows a platform so you can step up to the next level, start implementing [the tools used in the program] and be a well-rounded manager beyond your specific area of expertise," says Wharton grad Will Tilton, director of global product supply for Shire Pharmaceuticals in Chesterbrook, Pa.

Kellogg came in a close second with companies and received high marks from students for its curriculum and program features. Kristen Dickey, human-resources director of Chicago-based Orbitz Worldwide Inc., says the program's focus on interactive marketing makes it especially attractive to e-commerce companies like Orbitz: "It's a unique feature that we benefit from." The company sponsors several Kellogg E.M.B.A. students.

Rounding out the top 5: the Thunderbird School of Global Management, at No. 3, lauded by students for its global-business focus; the University of Southern California's Marshall School of Business, at No. 4; and the University of North Carolina's Kenan-Flagler Business School, at No. 5.

UNC, Thunderbird and USC also led the student rankings, getting high marks for program quality, leadership education, faculty quality and program support. USC, UNC and Emory University's Goizueta Business School were top rated in the management and leadership skills ranking.

Four international schools made the overall list: ESADE and IESE, both of Spain; IPADE, which runs executive M.B.A. programs in Mexico; and the University of Western Ontario in Canada. London Business School's joint program with Columbia University's Business School also earned a spot in the top 25.

Eyes on the Prize

The survey also provided a window into students' thinking about the programs: what drives them to pursue executive M.B.A.s, what they get out of them -- and how they choose a program in the first place.

Students said E.M.B.A.s are a way to develop leadership skills without losing more than a few days a month in the office. (Unlike traditional M.B.A.s, these programs are usually held every other weekend and often involve distance learning.) And students can take the methods they learn in class and use them immediately to tackle real-world business problems.

One survey respondent summed it up neatly: "Learn on Friday and Saturday, apply on Monday."

When it comes to choosing a program, the top factor was the school's reputation (noted by 51% of students in the survey). Take the case of one survey respondent who earned an executive M.B.A. from Kellogg. The school "has a significant reputation in marketing and branding," wrote the student, who said he needed that credibility to move into a different job at work.

Since graduating, he added, "I've been short-listed for a couple of very good international opportunities."

Some schools have excelled by creating a reputation around other specialties. Frank Wilson, director of finance for the Chicago Police Department, chose Thunderbird because of its focus on international markets. Before applying, the 46-year-old emailed a Thunderbird professor about how much the program would teach him about doing business in Brazil. Mr. Wilson has traveled there and hopes to work in Latin America one day.

The professor replied within a day, pointing out a course that covers the region. Mr. Wilson says he would have had to attend a European school to get the same international-management exposure he found at Thunderbird.

Faculty, of course, make up a huge part of a school's reputation -- and weigh heavily on students' decision-making. In the survey, 78% of students said they considered their school because of its distinguished faculty. Indeed, as schools compete for students, they often bend over backward to secure their best faculty for executive M.B.A. programs.

Jessica Kourkounis for The Wall Street Journal

Students inside of Jon M. Huntsman Hall at the Wharton School of the University of Pennsylvania, in Philadelphia on September 15, 2008.

At Columbia Business School, Nobel laureate Joseph Stiglitz co-teaches a weeklong elective course on globalization. At New York University's Stern School of Business, Edward Altman, known for developing the Z-score formula for predicting bankruptcy, has taught executive M.B.A. students for many years.

Students rated Thunderbird, UNC, Emory, the University of Michigan's Ross School of Business and Cornell University's Johnson School as the top five for faculty. For John Burdett, an Emory graduate, the little things made the biggest difference. "Professors had the ability to get information down to our level and explain things in a simple manner," says Mr. Burdett, chief operating officer at TicketBiscuit LLC, an event-management and ticket-sales company in Birmingham, Ala. "That, for me, is an extreme talent."

Surprisingly, respondents said cost and location were relatively unimportant when it came to picking a program. And that was true whether or not their company helped pay the bill. Nearly 34% of students said they paid their own way, which can range from $65,000 to $160,000 for tuition alone. (The median out-of-pocket cost survey respondents reported was $45,000.) About 30% of respondents said their employers paid the entire bill, while 13% said their companies paid between 51% and 99% of the cost.

Meanwhile, many students traveled hundreds or thousands of miles to attend class. While about 64% of students traveled less than 50 miles one way to attend these programs, 7% commuted up to 200 miles and nearly 9% trekked more than 1,000 miles one way.

So, what did the programs deliver? Many midcareer professionals said the degree is a genuine career booster that led to a larger role in their organizations and helped them move into management. Overall, 24% of those surveyed say they have been given both a raise and promotion since they started classes, while 30% expect both in the next year.

A Rapid Payoff

Companies, meanwhile, liked programs that delivered a quick return on investment -- employees who were able to apply what they had learned immediately.

Behind Wharton and Kellogg, companies surveyed ranked the University of Chicago Graduate School of Business as the top program in overall quality, followed by Duke University's Fuqua School of Business and the University of Michigan's Ross School. The companies said schools are doing a better job all around at helping to hone general management and leadership skills among employees who attend. Nearly half said the programs have improved in the past five years. Some 26% said they expect to see those skills put to use immediately, and another 26% expect so within a year of graduation.

Said one employer, who echoes the sentiment of many who answered the survey: "The experience immediately improves critical decision-making skills, general business acumen and increases confidence."

The survey also showed that companies are seizing on E.M.B.A. education to motivate employees, build bench strength and hold on to talent. Overall, 64% of human-resource-development managers who responded to the survey regard E.M.B.A. programs as a talent-retention tool. And 55% called the degree a critical business investment.

Take the executive M.B.A. fellowship program at Goldman Sachs Group Inc. The company funds the degree for about eight employees a year, which helps those on the executive track feel rewarded, says Carol Pledger, a managing director at Goldman Sachs. "It broadens the leadership and business skills of our people," she says.

What's more, employers say the newly minted grads who have been sponsored have a sense of gratitude to the company and are more likely to stay. Allstate Insurance Co. found that workers with new degrees performed "about 20% better and are 80% less likely to leave the company," says Marsha Love Morrow, Allstate's director of leadership and performance capacity. The Northbrook, Ill., insurer covers as much as 100% of employees' executive M.B.A. costs.

Of course, since the programs carry hefty price tags and require time away from the job, companies typically sponsor only their best performers -- and many companies simply don't sponsor any.

J. Emilio Flores For The Wall Street Journal

Students enter Popovich Hall where classes are held at Marshall School of Business.

Room for Improvement

The student and corporate surveys also showed that schools have a ways to go in several areas. A few companies complained that some programs taught students to solve business problems like academic exercises. One respondent said executive M.B.A. students are "more likely to try to run a project along the lines of some classroom exercise...without regards to practicality in our company."

Some students, meanwhile, had issues with technology. Many schools conduct classroom sessions, team meetings and project work via distance technology such as videoconferencing, but some students say the technology doesn't always work well or enhance the education. Similarly, few schools scored well with students when it came to teaching executives how to manage remotely or virtually -- increasingly a requirement in a global business environment.

Then there's flexibility -- a big issue that many schools have tried in vain to address. Most programs schedule classes every other weekend, and a few offer weeklong sessions spread over about two years, with distance learning in between.

And, regardless of schedule, graduates say they spent a big chunk of their time studying and preparing for class; indeed, 38% spent more than 15 hours a week on class assignments. Course work was definitely an issue for Steven Zell, senior vice president, director of operations and marketing at Valueworks LLC, a Manhattan-based investment-management company.

"It's safe to say that I haven't seen some of my friends in two years," says Mr. Zell, who earned his executive M.B.A. at NYU's Stern School.

—Mr. Srivastava is a former Wall Street Journal staff reporter. He can be reached at reports@wsj.com. Alina Dizik, Emily Glazer and Jennifer Merritt contributed to this article.