What’s the point of this GMAT thing anyway?

I’ve had many students arrive at a first class with a downcast expression and an air of resignation. They’ll say something like “I have to take the GMAT to complete my application.” Or, even worse, “GMAT isn’t obligatory for my application, but it’s highly recommended.” They seem unenthusiastic about the whole project, resentful even. Perhaps this describes you.

I’m pretty convinced by the simple psychology that if you can’t find a reason for what you’re doing, then you’re going to find it very difficult – perhaps impossible – to motivate yourself to study effectively. That point is so important that I’ll repeat it: we need to see why we’re doing things in order to do them effectively.

This naturally leads to a discussion of why business schools and universities (and even some employers) like to see a decent GMAT score. I strongly encourage all my students to engage with this question. In the spirit of good learning, pause now before scrolling down and try to answer the question: why do business schools want their candidates to take the GMAT?

Here are my suggestions for the main ones:

  • Showing a minimum threshold of numeracy and literacy. B-schools and universities want to check that their students can do the basics: handle percentages, formulas, graphs, etc.; do basic algebra; read and critique a challenging text; write complicated ideas in clear English.
  • Checking academic skills. The bad news is that your university degree certificate isn’t worth much these days. The percentage of people with undergraduate qualifications has risen hugely in the last generation, and the lax and inconsistent grading systems that many universities use mean that there are countless students with ‘top degrees’. Further, there’s huge corruption in many countries. All this means that b-schools can’t quite trust a candidate’s academic qualifications. A decent GMAT score gives a very reliable indicator of certain abilities.
  • Business-type skills. Some of my most satisfying moments as a teacher have been when students start to see the GMAT as something relevant to their work lives. If you’ve tried out some GMAT problems, you might have seen that the challenge is to use reasoning to solve problems the best you can under significant time pressure. Add to this that the test rewards students who use creative methods (and penalises those who are inflexible) and the GMAT starts to sound closer to some of the skills valued in the world of business. The time-pressure element means that there’s a good deal of “messy” solving (such as estimating) and strategic guessing that goes on. Generally, perfectionists are punished. Once you see some value in this type of skill, not just for the GMAT, but for your future career, studying will probably be more purposeful.
  • Getting a candidate back into learning mode. I’ve seen many GMAT students express shock at how much they’ve forgotten since leaving full-time education. I mean not only stuff like how to solve a quadratic equation, but also the study mindset itself: how to patiently uncover one’s weaknesses, diligently do homework, and critically examine material. Often, learning involves the emotional challenge of feeling confused and out of control. Sometimes adults become so uncomfortable with this experience that their learning abilities are seriously impeded. This can become even more pronounced for more mature students, such as those applying for Executive MBA programmes (see ‘Preparing for the EA’). I’m convinced one purpose of the GMAT – regardless of the score that students end up with – is to pave the way for an MBA programme by bringing a student back into “learning mode”. 

Of course, don’t take my word on this. Go and do your own research: chat with friends who have done the test, ask admissions officers at b-school open days, and check out b-school websites. I encourage you to have a mindset of doing your due diligence to prepare for the GMAT. See also my article: ‘Be up to speed on the specifics of taking the GMAT.’





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