Why GMAT?
Updated for the new GMAT in 2024
The GMAT is the most widely-used test for MBA admissions. MBA programs use GMAT scores in three ways: to assess an applicant’s odds of success in business school, to boost the program’s rankings, and to narrow down the applicant pool to a manageable number. These factors make the GMAT an incredibly important piece of an applicant’s MBA profile.
The GMAT as predictor of success in MBA programs
MBA programs want to admit candidates who are going to succeed in their programs, graduate with flying colors, and go on to lucrative and fulfilling careers. But how can schools know that a certain applicant has the academic chops to pass Microeconomics and to write a killer paper for that tough Business Communication course?
To apply to business school, candidates submit their undergraduate GPA -- but there is no guarantee that a 3.0 or 4.0 from one school is equivalent to the same GPA from another school. Similarly, students submit essays as part of their applications, but those could reflect the writing skills of an editor (or an unscrupulous MBA admission consultant), not the student herself.
So, schools rely on GMAT scores as an equalizing force to ensure that students have the quantitative and verbal reasoning skills to do well in their MBA program.
If this was the ONLY use of GMAT scores, then a decent, “good enough” score would check that box and MBA admissions committees would focus on other pieces of a candidate’s application. Factors that are frankly more interesting -- a student’s work experience or application essays, for example -- would determine whether a student is offered a place in the next MBA cohort.
Unfortunately, the GMAT is also used to determine a school’s ranking in comparison to other MBA programs. This has created an “arms race,” in which students need ever-higher GMAT scores to gain admittance into top programs.
The GMAT and MBA program rankings
MBA programs are in constant competition with each other. It’s simple: a higher ranking means more prestige for the institution, which means more high quality applicants and better job placement for graduates of the program.
GMAT scores play a big role in this competition, and over the years average GMAT scores for top programs have become outrageously high. Instead of looking at a candidate’s GMAT score to prove that they have the basic skills they need, schools vie for candidates with superhuman scores to drive up the average for the admitted class, and therefore improve the ranking of the MBA program.
This has important implications for prospective students: if a student can score above the median GMAT score for a given MBA program, that school is likely to look at that score as a BIG plus when assessing the student’s application as a whole.
If, on the other hand, a student scores BELOW the median, this suddenly becomes a liability -- even if her GMAT score is pretty darned good.
Of course, the GMAT is not the only data point in an application, and scoring below the median for your target program doesn’t mean that your chances of admission are ruined. But if your GMAT score isn’t going to help your target program’s rankings, you almost certainly need to have something really interesting in your application. For example, unique work experience, a killer personal story, or an underrepresented demographic profile are things that a school might embrace as an opportunity to overlook a below-average GMAT score.
Using the GMAT to winnow the MBA applicant pool
Top MBA programs can attract up to 10,000 applications in a given year. The sheer volume of these applications means that admissions offices are unlikely to give thoughtful consideration to each application.
To decrease the number of applications that admissions officers need to carefully evaluate, some schools may use the GMAT as a convenient sorting tool. In other words, if you don’t meet a minimum threshold score, they might not pay much attention to your MBA application at all -- which means that your unique background and fascinating work experience may not even be considered.
The bottom line: why take the GMAT?
Depending on the rest of your MBA profile, a fantastic GMAT score may be the single most important piece of your MBA application. So, if you can score at or above the median score for your target program — GO FOR IT.
However, if your score isn’t near that mark, then your GMAT score could be a significant liability. Don’t despair, though — schools certainly do look past GMAT scores for candidates who truly stand out in other ways. Another option is to opt out of the GMAT “arms race” by taking the GRE or Executive Assessment.