I read an interesting interview of an executive recruiter over the value of the MBA. I recommend you read it as well, but in a nutshell, the MBA has real value. It has the most value in investment banking, consulting work and finance but can be a cross industry asset as well. The MBA is being more sought after by being “preferred” but not necessarily a requirement in applicant desirability but on the flip side of the coin, there are a lot more MBAs running around in the market diluting the value somewhat. Lastly the MBA says a lot about the applicant. This recruiter likes to see someone who left a lucrative career in order to invest in themselves for a couple of years at a top business school.
Of the entire article I have to disagree with him on one quote when asked what an MBA says about an applicant he responds by saying that“…they (the applicant) have made a sacrifice, and they are a highly motivated person. Depending on the reputation of the school, it can be a marker of how bright they are and how much value they place on it. If someone quit their job and went to Wharton, it tells me something different than if someone who went to a lesser-known school out of convenience, as opposed to seeking the best training.”-Walter E. Williams.
Here’s are the issues I take with the above quote.
1.) It lacks perspective. Mr. Williams assumes that he/she who would quit their job in order to attend school at Wharton or the like are making a greater sacrifice than one who would be willing to work full time and study full time or part time. Is working and going to school less of a sacrifice? I would personally disagree. If I could cram my wife and I into a little apartment and focus soley on school I personally believe that I would be under a lot less pressure. My wife probably would have to make more of a sacrifice but me personally? Nah. But then that’s just me.
2.) Mr. Williams talks about how important it is for someone to have professional experience before undertaking an MBA program however I’m not sure that he has considered how valueable it may be to apply what you are learning at your current position. This has aided me in getting perspective on how my new skills apply to the workplace as I learn them. When I do decide to transition in employment in an attempt to utilize my MBA I feel I will be a little more realistic and seasoned than my peers who quit work to study as I have seen where the application of this new knowledge fits and more importantly, where it does not.
3.) Not everyone will make the kind of money that would be necessary to recognize a return on investment in just the tuition cost of a school like Wharton alone, much less the opportunity cost of forgoing a couple years of work and experience. The tuition? About $72,000 for the year of 2007-2008.
4.) There are perfectly viable alternatives to a traditional brick and mortar B-school without having to sacrifice name recognition or quality. Penn State for example or how about the Duke Fuqua School of Business? Hardly blow off programs. Online does not equal less rigor and quality, only that it is online.
Overall I do believe the article conveys a ton of useful information to mull over if you are seriously considering an MBA. However what we all need to keep in perspective is that the MBA is really just a sheet of paper. The person behind the degree, the man or woman are what adds value to the credential. The degree is but a small part of an overall much more complex picture. Sometimes I think we place too much emphasis upon a degree program like it is some magic potion to success. It most certainly is not.
Check out the article at:
http://online.wsj.com/article/C60825MATTIOLI.html?mod=googlenews_wsj