I got my MBA many years ago. It was a good use of my time, attention, and money. That said, there are a lot of skeptics out there, and they have good reasons.
3 Cons of the MBA
Inflation. Typically the more of something there is – all things being equal – the less value it has. There was a time when advanced degrees were rare, Masters, PhD, Law degrees. Now they are a-plenty. There are more than 100,000 MBAs awarded each year, so the relative value keeps falling.
A plain MBA (however you define that) is just not valuable by itself; the program’s pedigree and regional brand matter. Careful of broad-stroke generalizations of anything – Republicans, Democrats, Americans, or MBA.
Temporary. Anyone who’s found their way to this blog will likely agree with the statement that “you need to be a life-long learner.” There is no MBA program which will 100% equip you for everything you need for your career.
Expensive. Unless you are the rare bird who can get a full scholarship, it’s expensive. I would say that 1/3 of the value of a MBA is the core learning: marketing, strategy, statistics, negotiations, finance, accounting etc. . . As shocking as it sounds, you can find a lot of that online for free. For fun, I put together a nice curriculum for you from Coursera (one of the big MOOCs).
- Financial Accounting – Wharton, U of Penn
- Strategy – Darden, U of Virginia
- Innovation – Darden, U of Virginia
- Operations – Wharton, U of Penn
- Organizations – GSB, Stanford
- Finance – Ross, U of Michigan
- Microeconomics – Wharton, U of Penn
- Bayesian statistics – Duke University
- Law – Wesleyan University
Some will say that these courses (e.g., Princeton) are not MBA-level programs, and that many are only 5-6 weeks long. Fair criticism, but let’s remember it is free. Clearly you can get 50% of MBA-type content online. Not perfect, but if you are looking to get smart on a topic, it’s a great start. You have the opportunity. No relief for the lazy.
So why bother with a MBA?
Depending on the program and the timing in your career, it might be exactly what you needed. For many of us, our career progression looks like the first S curve in the graph. It ramps up, but then slows down. For many of us, it’s when we are 27-33 years old and its when a lot of people head back for their MBA.
MBA helps you jump the S curve in your early career
It is a step-jump to the next level of career path. You’ll note that it doesn’t do anything for your next jump. That one is up to you and has less to do with your credentials, and more with your achievements. The MBA helps get your 1st good job out of school, but not your 2nd one.
PROs of the MBA
1. Relationships: You meet smart, motivated (and hopefully generous) people. Diverse people from different countries and professional careers. Lots of personalities – but all motivated learners. Although I have been out of school for 16 years, I still email and talk to a few people from my class monthly.
It’s the relationships that last. Trust me, after being out of school – being able to calculate the WACC (weighted average cost of capital) is a lot less important that being able to call a buddy for some advice, referral or a favor.
2. Recruiting: My first consulting role was as a campus hire. If you are looking to break into management consulting, the easiest entry point is through campus recruiting. Transferring as a lateral hire into consulting is not an easy or a pretty process.
3. Redefinition: For those who are career switchers, MBA is the way to go. I saw people successfully move from the military, or education, or sales to management consulting. I came from a B2B marketing / strategic planning role and made the switch.
4. Recharging: If you are fortunate enough to spend the time and money for a 2 year full-time program, MBA life is a luxury. It’s a chance to do college right. The formula I came up with : MBA = Business Learning + Good Paying Jobs + Solid Friends. For those interested, there are many websites on MBAs, but here are the 2 best ones:
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