07 April 2005
It seems like I last blogged just a few days ago – but it’s been 3 weeks since my last post! Anyway, I’m back, back from 2 weeks in Paris, back to studies and back to blogging.
It seems I am not the only one feeling the urge to blog. My dear fellow French MBA2006 Olivier started blogging again! Such a link is almost incestuous but this is how it works: it’s a true Mafia. His first post has a serious tone and a serious subject and I will follow his (always) wise example – in my usual twisted manner of course.
It is interesting that Olivier’s first post describes dark prospects for MBA graduates in the US and the recruitment difficulties of American Business Schools, while giving his position about the debate of whether an MBA is worthwhile at all – if not dangerous. I really believe this is a never ending debate as clearly some people make it without an MBA (and without any particular undergraduate or graduate education at all) as the recent list of world billionaires clearly illustrates (Bill Gates, Michael Dell…).
On the other hand, this might be the best way for a lot of bright people who have not been incredibly or at all successful yet to reach the next level and then be able to grow in a way they wouldn’t otherwise. I am not speaking for myself (though success has not been knocking on my door), but it is true for most students around me at London Business School.
Sure an MBA is expensive. Now that I can (arguably) compute an ROI correctly, I might want to leave school, consider my first year tuitions fees a sunk cost and save half my estimated investment. However, I also learned that what is important is that you should undertake projects with positive Net Present Value (and that sunk cost shouldn’t influence your decision making).
What you get from an MBA is hard to quantify but the value is tremendous. Forget about any unnecessary Ethics course and the stupid debate about MBA and ethics– note: we are not all unscrupulous sharks and Ethics and Corporate Responsibility are well and enough taught at LBS and I guess at most top-tier school. I believe the value comes from the network you develop: an MBA really gets you rooted into the business and corporate world. Most of these interactions and links created across industries and between managers, entrepreneurs, investors, etc. are the basis and the catalyst of Business, especially for Corporate America.
It seems the trend of promoting in-house trained executives is gaining momentum and I believe most companies will be fine with that decision. However, on the long run it is ignoring what an MBA is able to bring to a company compared to internal training and it might jeopardise corporations’ future. The higher a manager climbs in the organisation chart, the less important the “technical” and industry knowledge and connexions are. What a true manager then needs is first a completely different set of kills like the ability to manage its teams or relationships with investors and analysts and second a larger network of contacts who will benefit the company – for fund raising, senior recruiting or creating new business opportunities.
I also find it funny – and I recognise my point of view is arguable – that media focus so much attention on the shortcomings of MBAs while in the same time asking for more professional, more rational and less “tycoonesque” management, at least in the media industry.
In my opinion, the wealth created by MBAs in general is extremely beneficial to society. There are a few bad apples and there are bad practices, but this is not limited to MBAs. Sure the MBA world, the B-schools, their recruitment methods and their alumni can be seen as a mafia and it is healthy that this model is challenged. Sure my opinion is biased. But honestly, I cannot think of a better way (not the only way) to bring to corporations and society at large the quality managers and entrepreneurs they so badly need.
It seems I am not the only one feeling the urge to blog. My dear fellow French MBA2006 Olivier started blogging again! Such a link is almost incestuous but this is how it works: it’s a true Mafia. His first post has a serious tone and a serious subject and I will follow his (always) wise example – in my usual twisted manner of course.
It is interesting that Olivier’s first post describes dark prospects for MBA graduates in the US and the recruitment difficulties of American Business Schools, while giving his position about the debate of whether an MBA is worthwhile at all – if not dangerous. I really believe this is a never ending debate as clearly some people make it without an MBA (and without any particular undergraduate or graduate education at all) as the recent list of world billionaires clearly illustrates (Bill Gates, Michael Dell…).
On the other hand, this might be the best way for a lot of bright people who have not been incredibly or at all successful yet to reach the next level and then be able to grow in a way they wouldn’t otherwise. I am not speaking for myself (though success has not been knocking on my door), but it is true for most students around me at London Business School.
Sure an MBA is expensive. Now that I can (arguably) compute an ROI correctly, I might want to leave school, consider my first year tuitions fees a sunk cost and save half my estimated investment. However, I also learned that what is important is that you should undertake projects with positive Net Present Value (and that sunk cost shouldn’t influence your decision making).
What you get from an MBA is hard to quantify but the value is tremendous. Forget about any unnecessary Ethics course and the stupid debate about MBA and ethics– note: we are not all unscrupulous sharks and Ethics and Corporate Responsibility are well and enough taught at LBS and I guess at most top-tier school. I believe the value comes from the network you develop: an MBA really gets you rooted into the business and corporate world. Most of these interactions and links created across industries and between managers, entrepreneurs, investors, etc. are the basis and the catalyst of Business, especially for Corporate America.
It seems the trend of promoting in-house trained executives is gaining momentum and I believe most companies will be fine with that decision. However, on the long run it is ignoring what an MBA is able to bring to a company compared to internal training and it might jeopardise corporations’ future. The higher a manager climbs in the organisation chart, the less important the “technical” and industry knowledge and connexions are. What a true manager then needs is first a completely different set of kills like the ability to manage its teams or relationships with investors and analysts and second a larger network of contacts who will benefit the company – for fund raising, senior recruiting or creating new business opportunities.
I also find it funny – and I recognise my point of view is arguable – that media focus so much attention on the shortcomings of MBAs while in the same time asking for more professional, more rational and less “tycoonesque” management, at least in the media industry.
In my opinion, the wealth created by MBAs in general is extremely beneficial to society. There are a few bad apples and there are bad practices, but this is not limited to MBAs. Sure the MBA world, the B-schools, their recruitment methods and their alumni can be seen as a mafia and it is healthy that this model is challenged. Sure my opinion is biased. But honestly, I cannot think of a better way (not the only way) to bring to corporations and society at large the quality managers and entrepreneurs they so badly need.
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