Is An MBA Worth It?

The Value of An MBA

Despite recent declines in MBA enrollment this year, the MBA remains a valuable degree option for graduates. Even though there are many that discount the value of an MBA saying that MBAs do more harm than good. It is simply not a true statement. An MBA not only gives you theoretical knowledge, but more importantly it provides you practical experiences that you could not get anywhere else. It provides you with opportunity, and a community that you can not find anywhere else. An MBA also pays for itself but do not just take my word for it, watch this short video from Rice University.

This article seeks articulate the sentiment around why some people think MBAs do more harm than good and provide the reasons why that is the wrong sentiment.

The Sentiment is that MBA Graduates Ruin Companies

I think if you boil down all the negativity towards MBAs, it boils down to the sentiment that MBAs do not like be hands on. In other words, the MBA is someone who is spends their whole day managing from an office. They are not visiting factory floors, they are not talking to customers, they are more focused on the finance of the company. After all, look at all the successful CEOs that do not have MBAs. There is some truth to latter statement as many of Harvard Business Review’s highest performing CEOs, many of them did not have MBAs. Then again, I would venture to say that the majority of the CEOs have an advanced degree of some kind.

Below are the reasons that MBA graduates are helpful additions to organizations and do not ruin companies.

Reason 1: MBA Graduates Are More Effective Professionals

The standard learning model for MBA students is the case study method. Similar to law school, an MBA student will look at cases or real world stories that contain a business problem or decision that a manager or CEO needs to make. It is different from law because law students review legal cases which contain legal controversy, and learn the law by how it was applied to the facts of the case The case study method alternatively helps train the student in how to think as a manager of an organization.

An MBA program requires a person to balance multiple priorities, which makes them better time managers and more efficient. In addition, to time management, MBAs are better at interpersonal relationships. Some MBA have specific classes geared toward interpersonal relationships. This is essential when in a managerial role when you have to talk to multiple people with varying personalities.

MBA graduates just do not parachute into management positions, oftentimes MBAs end up in management positions because they have been well groomed to fit into the role. This includes work experience before the MBA, and work experience gained while getting an MBA. This is contrary to the arguments that MBA are just handed management positions, on the contrary they have earned their role.

Reason 2: MBA Graduates Have Connections to Successful Peers and Alumni

Depending where the student has gone to school that person will belong to an extensive network of friends and fellow alumni. If a business needs outside help for example and they need to find someone they can trust, personal connections are best. This is because you know the character of the person you are contacting. A great way to form these connections to lawyers, business consultants, and experts is to graduate with a graduate degree like an MBA.

Reason 3: MBA Graduates Command Higher Salaries

If you saw the above video, students who graduate with MBAs make substantially more than before their MBA. It is important to add that the better school you go to the better the starting salary will be. There are alot of reasons for this. Many of the best schools are in big cities where the cost of living is the highest. People from top schools also are more likely to go into higher paying roles like private equity, business consulting, and tech. Even if you do not go to a top school, the school in your area can help you get better jobs in your area, roles that you like, and enjoy doing.

The fact that MBA graduates are worth more in the market place is a big sign that they do not ruin companies and are valuable.

Reason 4: MBA Graduates Often Have Diverse Perspectives

It is true that in the process of getting an MBA you are exposed to a lot of different things. First, you are exposed to different types of people which helps you become more understanding of people with different backgrounds. Second, in most MBA programs, you have an international experience which allows you to experience a different culture, in business and in life. There is also the classroom experience which helps you grow as a professional, and help broaden your skills as a professional. For these reasons, MBA graduates are better rounded and are more versatile than people who did not put in the time and effort to get an MBA.

Reason 5: MBA Graduates Know How to Work On Teams

It’s not just engineers who know how to work on teams, MBA graduates know how to work on teams as well. For example, MBA students will often have to work in teams of several people on a project of some kind. Teams must select a leader, and assign responsibilities to each team member. A good leader will learn not to micromanage, but also be able to be decisive and not share to much power as well. Overall, the team projects in an MBA program are not just about completing the assigned goal, but getting more competent working in teams.

Reason 6: MBA Graduates Know How to Learn New Things

Part of doing well in school in school is learning how to learn. MBA students have been successful to get into their MBA program, but they have to again learn how to do well in a MBA program. This process makes them better at learning how to learn than those who just graduate college. This makes sense because the more you practice this skill of learning and adapting the better you will be at it. The skill is important because in life and in business you have to be able to reinvent yourself and add to your skills to become more effective. If you struggle at doing this, you will struggle in your work. Just another reason why an MBA graduate is valuable because they are good learners.

Reason 7: MBA Graduates Have Better Reflective Skills To Learn From Mistakes

Being able to reflect is an important skill in life. It is important to be able to breakdown why you behaved a certain way, and what ways you could improve. For example, let’s say you have a job interview and you did not get the job. Being able to go through your experience and breakdown what things you did right and what you did wrong and then explain what caused you to those things is where the value is. This work is important to understand yourself, and make better decisions. If you can understand not only that you were not prepared enough and then be able to articulate why you were unprepared, you can avoid it the next time. This is a recipe for success long term. These are skills employers value, so an MBA graduate who likely has done much reflection for two years is valuable to employers.

All of the above reasons show that MBA graduates are not just academic, but they have the tools to get the job done and are more thoughtful people as well.