The McDonough School of Business rose two spots in the 2010 Global MBA rankings published by The Financial Times this January, moving from 40th place to 38th place, primarily in response to improvements in research and placement success.

“We are extremely excited. We are getting recognition that we are actually taking the right steps to position the school where it belongs,” Deputy Dean of the MSB Ricardo Ernst said.

According to The Financial Times Web site, the rankings are based on three main areas: alumni salaries and career development, diversity and international reach, and research capabilities.

The rise in the MSB’s ranking can be attributed to an improvement in its research rank as well as placement success rank, according to Jett Pihakis, associate dean for MBA Programs.

The business school saw a 10-place jump within the research component, which is based on the number of faculty publications in top academic and practitioner journals.

“The administration here has been very encouraging of faculty to continue to focus on scholarly research productivity without sacrificing the quality of teaching in the classroom. We have a faculty that do both quite well,” Pihakis said.

The MSB has hired 16 new professors this year, which both Pihakis and Ernst said has had a large impact on the increase in research. According to Pihakis, the improvement in research is particularly critical because it is weighted heavily in the calculation of the total ranking.

The MSB also improved significantly in the placement success component, moving from 42nd to 32nd place. Schools are judged in this aspect based on alumni perception of the usefulness of career services.

“There are many variables that affect the rankings, but if you were to evaluate all of the variables under our control, we are making an explicit effort to improve in each one of those,” Ernst said.

According to Pihakis, the MSB still has room for improvement in certain areas in order to rise further in status.

“We strive to get a greater percentage of women on our faculty and on our board,” Pihakis said.

The opening of the Rafik B. Hariri building this fall did not have any notable impact on this year’s Financial Times rankings because the alumni surveyed for the report graduated three years ago and did not have access to the building at that point. According to Pihakis, the building will likely have an effect on the MSB’s standings in the Businessweek and U.S. News and World Report MBA rankings.

“The new building has been able to provide the right synergy. For the first time, we have all the programs, students and faculty in one building, and the energy that we are able to generate will start to pay back in the future,” Ernst said.”