Is there a downside to MBAs?

Most of the information I've read about the value of an MBA has been favorable, however, an interesting article in the April 30, 2007 issue of Fortune Magazine which suggests that the skills obtained through an MBA program may not be exactly what employers are looking for.

The article describes a lecture given by Jack Welch at MIT in which he was asked the question of what the students should be learning in business school. He responded with "Just concentrate on networking. Everything else you need to know, you can learn on the job." Was he indicating that a graduate business degree was a waste of time? It would seem so.

The article explains that employers are finding MBA graduates tend to lack important interpersonal skills. B-schools tend to focus on on quantitative skills and fail to focus on teamwork and communication. The Graduate Management Admissions Council surveys recruiters and the survey has indicated each year since 2002 that new MBAs lack the ability to write and speak clearly and persuasively. The survey also indicates that these are skills employers value most.

The good news is that B-schools such as MIT, University of Chicago, Wharton and Yale are responding to this MBA downfall by including more interpersonal coursework in their curriculums.

This means that in order to gain the most benefit from your MBA, not only do you have make certain that pursuing an MBA is of value to your future, but when selecting your school you must make certain that you select a school with the appropriate concentration and a curriculum that focuses not only on quantitative skills, but interpersonal skills as well.

MBA Benefits

There are advantages to pursuing an MBA. The obvious advantage is that an MBA typically opens one up to better career opportunities over the course of his or her career, which leads to higher salary earnings. The Graduate Management Admission Council reports that the typical MBA graduate in the class of 2004 earned a 35 percent increase in their salary from when they began their program.

The average salary in 2003 for a high school graduate was $27,915, for a bachelor's degree $51,206, and for an advanced degree $74,602 (US Census Bureau, 2005).

Students of MBA programs gain enhanced strategic thinking and managerial effectiveness. MBA graduates spend a great deal of time analyzing case studies and developing their analytical skills and are better prepared to handle decision making and leadership responsibilities.

Another key benefit of an MBA program is the opportunity to develop a business and personal network. Participants of MBA programs usually form lifelong relationships with their MBA cohorts. It is not uncommon for for an MBA student to be hired or get a lead from one of their former classmates.

Several former MBA students reported that the most important thing they got out of their MBA program was confidence. They believed that if they could get through an MBA program, they could do anything. The program gave them the confidence to state their opinions and points of views and be taken seriously by CEOs and executive vice presidents.

MBA- Is it right for me?

During my research, I discovered it is important, when deciding whether or not to pursue an MBA, to first know what career path you want to follow and where you want to end up. If you decide to pursue an MBA without this knowledge, figuring that you will decide what you want to do after you get your MBA, you may end up paying great deal of money for a degree that provides you with very little benefit. If you know your career plan, it will make it easier to select the school, program, courses, and MBA concentration that is right for you. MBA programs range in cost from $12,000 to more than $100,000 and in order to get the most benefit from your time and money, you need to ask yourself many important questions beyond those of your career path. The following list includes some examples of those questions.

How much am I willing to pay for tuition and other costs?

Do I want to attend a full-time or part-time program?

Will I continue to work or attend school full-time?

If I am already employed by the company that I intend to build a career with, will having an MBA benefit me? If I know what company I'd like to work for, will a MBA give me a better chance of gaining employment with that company?

Which MBA concentration is best for my career path?

**Most Importantly** Will the benefit of the MBA outweigh the cost in my personal situation?

The website mba.com includes information that can assist you in researching career paths and job functions. This site also links to CareerLeader, which provides industry and career profiles I think you will find helpful.

Advanced Education Required

How much education is enough? Once upon a time, an individual who had earned a 4 year degree could climb relatively high up a corporate ladder and previous job experience used to be considered valuable.

If you've recently been searching for a new career with a company, you've probably realized that in order to reach a rung somewhere in the middle of most corporate ladders today, you'd better be equipped with no less than an MBA or some type of advanced certification. What are the benefits of earning an MBA? Does an MBA guarantee an individual a brighter future? What questions should you ask yourself when deciding whether or not the MBA route is right for you? These are questions that I've been pondering myself and intend to answer through research and personal reflection.