People traditionally flock to grad school when the economy makes finding a decent job an acrobatic challenge. However–when you factor in the monetary- and opportunity costs, (barring the notion that higher education fulfills a wild passion of yours) is grad school really worth it?
Author and Harvard Business Review writer Scott Berkun explores the question vis-a-vis MBAs. He says getting one in the traditional way costs more than the average American’s annual wage. Meanwhile, Internet-based MBAs (Personal MBAs, or PMBAs) are practically free.
(The PMBA is) a web 2.0, Internet based, self-driven program, that focuses on a $1400 reading list of 70 books with web forums, discussion groups and coaching.
I bet many MBAs are over-valued, and the Personal MBA (free, except for books which are available at your public library) is undervalued. The big gap is in recruiting: the PMBA program provides no system for Google, McKinley and Microsoft to recruit PMBA’s best students, and has no track record of “graduates” (there is no degree) entering the workforce to earn a reputation for the program. But if they did, they’d soon attract interest from recruiting corporations, and develop prestige, two big reasons folks want to go to well respected business schools.
If you’re business-minded, you want a cost-efficient education. And if you’re business-minded, you want to network. The way things stand, you can’t have both. Berkun highlights the fact that if you’re truly business-minded, you’ll find a way to bridge the gap between the cost benefits of a PMBA and the networking advantages of a traditional one:
For any entrepreneurs out there: Business 101 is to exploit these kinds of gaps. Find a a way to split the difference between a PMBA and an MBA, and you’ll make a fortune. An easy one is exit exams. Imagine an exam that tests people as they graduate (not when they enter), where PMBA’ers can compete against folks with traditional MBAs. I’m no fan of standardized tests, but that doesn’t mean there isn’t a business opportunity here. Maybe PMBA will do it itself (unlikely, given their manifesto) and dare Wharton and Harvard grads to participate. Who knows.
These days, MBAs almost seem as risky as self-educating and starting your own business. If you don’t have a specific career in mind–consultant, for example–what’s the point?
If you don’t have an MBA, would you get one? If you do–was it worth it?
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I’ve been pondering this very question . . . been practicing law for about 5 years. When I was in school, I started the joint JD/MBA program but was too anxious to get out to finish the last year for the MBA. I see so many schools offering MBA programs, and so many people graduating with the degree, it hardly seems worth the investment (personally, I’m looking to move in-house someday).
I think it depends on what you are looking to accomplish. Before I enrolled in a MBA program I would decide where I wanted my career to take me.
The MBA prepares you for a life as a corporate executive. Does this fit your overall goals? Are you willing to make the personal and family sacrifices this career path requires? If so a MBA may be a good investment. Then again you need to consider how long it will take to recoup the money and time required. Chances are that it may not be worth it.
Are you looking to branch out on your own? If so don’t waste your time or money. Most college based business programs are designed by academics who have little real world experience. Formal education won’t help you start and run a successful business.
I do have an MBA and it was very worth it. disclaimer - if anything sounds funny it’s because I’m ill right now and drowning in cough medicine
Can you learn the same material without going to a formal MBA program? Yes. Is the quality of the material and it’s presentation, the interaction with seasoned professors and classmates going to be as high quality? Probably not.
There are two other white elephants in the room here that make a PMBA nearly worthless in the real world….
1) Much of what you get with your MBA is the alumni association and the network of fellow grads. Looking for a partner, funding, a job - simple truth is that working your alumni network is extremely powerful.
2) When I can put MBA Wake Forest University on my resume, that carries clout - whether it should or not is another debate…the fact is, that it does. If I were instead to say, completed JoeBob’s PMBA 2.0 at http://www.mba-for-free.biz, well…you get the idea. (which was hinted at in the article)
I did the night class thing. It was a huge sacrifice for me and the whole family. But work picked up most of the tab so there was nearly no opportunity cost involved. Check with your employer - a lot of them have education reimbursement policies that aren’t widely advertised.
End result? I’m making 40%+ more than I was 4 years ago and hold a VP position. Worth it? Every minute I spent on it, absolutely.
It depends. Is getting a lobotomy worth it?
Some slog to rise to the position of top executives, some do mba.
Which one would you choose?
Anupam,
PR Head,
Managementparadise.com
I agree that MBA can prepare for your corporate executive positions one day, but it also can teach you a lot about managing small businesses. Finances, marketing, advertising, HR, people management, even entrepreneurship are definitely discussed in depth in your MBA program. Even if you’re going on your own one day and starting your own business - Rob said it right that the network you gain is really important. And that’s useful in corporations, entrepeneurships, volunteer work, or drinking buddies.