Why ISB Isn't as Hyped as Older IIMs Despite Superior Global Rankings

India’s premier management institutions, the Indian School of Business (ISB) and the Indian Institutes of Management (IIMs), both hold a significant place in the country's business education scene. However, the historical, structural, and cultural factors contributing to their reputations differ, leading to varying levels of hype and prestige. While ISB has achieved higher global rankings, it still faces challenges in comparison to the historically esteemed IIMs.

History and Tradition

Founded in 1961, the IIMs have a rich and enduring history, particularly IIM Ahmedabad (IIM A), which was established in the 1960s. Their legacy and historical significance in Indian management education have contributed significantly to their ongoing prestige. In contrast, ISB was established in 1996, making it a relatively newer institution in the field. The difference in age and history is evident in the perception of these institutions and how they are viewed within society.

Alumni Network

The IIMs boast a larger and more established alumni network that plays a vital role in enhancing their reputation. Graduates from these institutions often hold prominent positions in industry, government, and other influential roles, which further strengthens the brand value of their alma mater. ISB, on the other hand, has been building its own network, particularly in the corporate world through lateral hiring. While impressive, this network is not as extensive or as old as that of the IIMs, which has contributed to the perception that the IIMs are more prestigious.

Program Structure

The IIMs primarily offer two-year MBA programs, which cover a broad spectrum of business skills and attract a wide range of students, including those directly out of undergraduate studies. ISB, however, has an innovative one-year Post Graduate Program in Management (PGPM), designed for experienced professionals. This difference in program structure affects the perception of the institutions, as the IIMs are seen as more flexible and accessible to a diverse student base.

Global Rankings

ISB has indeed achieved higher global rankings in some international evaluations. However, these rankings often focus on factors that may not resonate strongly with domestic Indian students and employers. The IIMs, on the other hand, have established themselves as premier institutions within India, with a ranking that is more recognized nationally. For many Indian students and professionals, the IIMs represent the pinnacle of management education, a view that can overshadow the achievements of ISB in global rankings.

Brand Positioning

The IIMs have positioned themselves as the top choice for management education in India, creating a strong brand that is associated with exclusivity and prestige. This brand strength can overshadow the achievements of ISB, despite its high global rankings. The IIMs have a long-standing reputation and a well-established network that helps reinforce their position as the dean of management education in the country.

Recruitment and Industry Recognition

Many companies in India have longstanding recruitment pipelines with the IIMs, further cementing the IIMs' perceived value and reputation. ISB, while gaining recognition, especially for lateral hiring, still faces the challenge of penetrating these established networks. This industry recognition is a critical factor in the perception of an institution's prestige and relevance.

Cultural Perceptions

There is a cultural bias towards established institutions in India, and the prestige associated with the IIMs is often seen as a status symbol. This cultural perception can lead to greater hype and recognition for the IIMs, which are viewed as traditional and prestigious. ISB, being a newer institution, is still working to build this same level of cultural acceptance and recognition.

While ISB has made significant strides and achieved impressive global rankings, its relative newness and different program structure contribute to the perception that it is not as hyped as the older IIMs. As ISB continues to build its brand and alumni network, it is likely to gain further recognition and prestige, aligning more closely with the historical and cultural significance that the IIMs have long enjoyed.