OT: Value of an MBA?
 

(I apologize for this off-topic post).

I've found that F'Talkers are some of the most knowledgeable people around, so I'd like any opinions about the value of an MBA. For those who have an MBA, how has it helped your career?

I don't have an MBA, but I'm considering studying for one.

Thanks,
CrampedInY.

Me too, I've been gettings those ads recently and wonder if it's worth the investment to buy one. Without an MBA I'm not sure I can do the calculations.

andrew

This is exactly what the cynical side of me thinks as well. Anyone have positive things to say about MBAs?

CrampedInY

I am a physician. However, my opinion, based on my observations of the academic and professional environments, is that any university degree is useful, including an MBA. However, how useful it would be to you, depends upon a number of factors - including your background education, including other degrees that you may or may not hold, your background job experience, the requirements for jobs that you may be interested in, the background (including degrees held) by others looking for the same jobs as you are, etc


I would be willing to discuss this with you further, privately.

it certainly depends on your field, but I'm of the opinion that almost everyone can benefit from a business degree. the essential tools that you will learn are invaluable and can be applied to many careers. personally, I'm doing a B.Com and don't see the need for an MBA at the moment as they're essentially the same thing (at McGill anyway), but I may go abroad down the road to get mine. I find myself using what I've learned almost daily--being able to understand business news, analyze information on a firm to make conclusions, etc. if you have the time and funds, I say do it.

Speaking as someone who has recently spent a lot to get one, I would have to say that unless it is from a top 5 school (or at the very least the top school in your region/country) its is probably a waste of time financially. Its interesting to do on a personal development level, but the payback is questionable.

I got about a 30% salary increase in my first permanent job following my MBA (although I did have a very lucrative spell of consulting for about 14 months immediately after my MBA, so I guess I shouldn't complain).

Prof Mintzberg at McGill certainly isn't doing much for MBA recruitment ;)

It may be a waste of time and money
 

Check the article in the June 14 issue of Fortune magazine entitled "Why an MBA may not be worth it". Some clippings from the article:

"One reader says he used his MBA to line his African gray parrot's birdcage"

"biggest waste of time and money imaginable"

the degree is a "joke"

"a con game"


The article stated that mail to the magazine expressing this opinion was running 95 to 1. Also, a professor at the graduate business school at Stanford agreed.

I don't have an MBA myself, but I've hired those who do. Based on my experience, I tend to agree with Fortune. I would never again recruit anyone on the basis of this "credential." I wouldn't hold it against the candidate. It just wouldn't make one shred of difference in my decision.

I would echo what many here have said, with a few additional points. It really comes down to whether you wanted a branded job, with a consulting firm or in finance. Many top recruit from schools like Columbia, Havard, Wharton, etc. So if that is the motivating factor, that would contribute heavily to your decision. Secondly, if you are not a strong networker, it essentially gives you a network and helps teach those skills.

I think more and more people are of the belief that you will not learn more in two years doing an MBA than you would in an industry you cared to work. Assuming you could get a job in that industry in the first place, sans MBA.

Overall, it really comes down to your end goals and current skill set, but if you are a bright and motivated person, I would not recommend it.

I don't have an MBA.

I have met many many really stupid people who have an MBA.

But, if you can get one, do it. I see people hired just on the basis of the initials after their name. For the most part I believe it opens many doors to interviews that are closed to people who do not have it.

I believe that many of my resumes are thrown away immeadiately because of my lack of the MBA degree. My for 30+ years of experience in the business is trumped by the MBA most of the time.

It is too late in life for me to care, but the more credentials that can be added the better (advice that I give my kids and they are following. Hope he passed his CISA exam yesterday).

I agree with most posters. Having an MBA certainly isn't going to hurt but if you plan on using this credential to get "ahead", where you got it from makes all the difference.

Personally, after I finished my undergraduate, I wrote the GMAT and got an invitation to go to Wharton. I decided at the time that some practical work experience would be more important and thought I could always go do it later. About 10 years later, I seriously doubt doing an MBA would substantially increase my salary and am happy I chose the route I took. But... that was my personal choice.

I don't necessarily agree with this. If you are a very bright and motivated person, having an MBA will help unlock doors to very senior level positions.

I just graduated in the top 10% of my business school (undergraduate). In comparing B. Comm and MBA courses, I notice three differences (most of the time):

1. The course number
2. The time it is taught
3. The grading curve

That's it. C+ = 'fail' in MBA, D+ = 'fail' in B. Comm. You pay more for one, and as such, you end up with a higher GPA just because of the curve being on a smaller scale.

In my eyes, an MBA is extremely valuable at top schools with leading scholars (read: Mintzberg @ McGill, Porter at Harvard) because of the learning, the letters after your name, and the connections you make. An MBA is valuable at mediocre schools because of the letters after your name (i.e. your salary increases on average by $35,000 at my school), and the connections that you make.

In taking a class offered to both B. Comm and MBA students, the MBA's weren't impressive at all, thus turning me off completely of a MBA there. That said, with my B. Comm, I would argue that an LLB and a MBA are equivalent...

I did an Exec MBA myself. The value of the degree is more internal than external. Did it open doors for me, no more than a previous degree from an Ivy League University. Do I put the initials on my business card, nope. Yes it shows up in my credentials but that is it. It rounds out and polishes skills I learned after years of working in my industry.

In the past when I hired for another company, we would hire MBA's only if they worked for at least 2 or 3 years between their undergrad and the MBA. Going straight into the degree, then applying for a job with us was an automatic no interview. Experience counts for much more than the degree and the initials.

That being said the contacts I made were pretty good, not spectatular but good. It is nice to be able to call up the EVP and Chief Economist from one of the Big 5 banks and get your call put through :) Some in my class have obtained better jobs or promotions, others are just maintaining the status quo, while others have gone back to school for other degrees.

FYI I did a study for a very large multi-national last year on why MBA's weren't applying to them (it was an image thing), and of the Rotman, Ivey, Schulich and Queen's MBA's we brought in for the sessions (focus groups), all mentioned that at least 20% of their class was unemployed 1 year after the degree. Don't think of it as an easy ticket to a job - think of it as augmenting your life experience.

Oh yeah, I turned down one of the bigger schools in favour of a smaller one - more hands on personalized training. The degree was for my benefit, not someone else's.

Boy you guys/gals sure make me feel stupid for getting an MBA. :o

Getting an MBA was the best thing I ever did (besides marrying my wife). It was a fabulous experience where I have made some lasting friendships and received a great education too.

Is it for everyone? No. Will you get your dream job? Not right away.

It has been 5 years since obtaining my MBA and 3 jobs later I am finally in one that I would consider my dream job (at least very close). It likely helped me get an interview for the first job, but the later experience was more important for the other jobs. However, without one I would not be where I am today.

An MBA fills a particular niche and the value one has been distorted by the marketing of some schools. Anyone in North America will have essentially the same education that has an MBA (there may be slight differences due to specializations i.e. finance, marketing, etc). Having been in academic completions while doing my MBA I can attest that the primary difference between schools is their marketing budget and the name attached to the school. The lowly western school I went to soundly defeated all of the eastern schools.

You will get the greatest value out of an MBA if you want to get that core business education, you have several years of experience in some field and you have an undergraduate degree in some other discipline (not a Bcom).

As with anything you get what you put into it, the biggest difference between a Bcom and an MBA is not the course work but the experiences that your classmates bring to the discussions and the ability to see how the theory you are learning can be applied to real situations.

They may help you get in a door or two, but once inside you have to perform or you will be on the other side of that door.

Interesting subject, I have always found that the MBA tried to teach common sense to people who maybe lacked the "spark" for business...

At a company I worked for a few years back I was given all the newly hired MBA's to train on the company products and procedures, A high percentage found it hard to use there brain if it was not written down in some sort of procedure, a few had it...

What an MBA does not teach, and never will is street smarts, and I am afraid without street smarts your dead in the water!.

I too am weighing doing an MBA. though for me at the moment, it is also a means to an end to "re-directioning" my career. I have a B.Comm and have done quite well over the past five years but would like to 1) leave my company 2) leave the industry. The problem i seem to face is that I can get job offers in my current industry which I dont want. Getting a job outside of the industry, is proving to be more difficult -even if i get through the first door, its quite hard convinving people that i am quite willing to take a substantial pay cut from my current position. So an MBA ( and I do happen to think that learning is fun) lets me get recruited out of school into a new field -and perhaps without such a huge reduction in salary.

Theres a lot of experience on this board -so any suggestion on changing industries ? (and I dont know what I want to do -just what I dont want to do...everything else is fair game)