I don’t think MBA school is worth investment in time or money going forwards. Business School simply not all that it used to be. Over the last few years I have seen candidates finish MBA school assuming there will be a job at the end of their studies. Some candidates have found that job, but there’re lots that have not made any serious step up in their career.
If you are seriously thinking about going back to school, especially to an expensive business school, you really need to do a lot of research and make sure that it will give you the career boost that you think it will.
The MBA Program
The MBA program was created in the early 1950’s because multi-national companies decided that new employees did not have the general management skills that were needed to be successful working in large companies. Talented hires needed to be taught the basics of how big business actually worked.
MBA programs would take a talented individual and turn them in to a great employee for a large company. They were not designed for career advancement, teaching you how to be an entrepreneur or to run a small business.
Education is becoming more and more expensive. Unfortunately it does not always guarantee a return on investment especially in the case of MBA School.
Why I Don’t Think An MBA School Is Worth The Investment
Below are five reasons why I don’t think MBA School is worth the investment
- The Financial Cost – Many people assume if they have an MBA on their CV it will automatically mean there salary will increase, however this is simply not the case. MBA courses can cost as much as 150K at Harvard or Columbia and when you factor in lost earnings for the two years that you’ll be without an income, that figure can be much higher. In the early days of the MBA, it was not uncommon for companies to hire more MBA’a grads than they actually had jobs for, however today an MBA does not guarantee you a job.
- Networking – In the past an MBA gave you three fantastic letter’s on your CV and a major opportunity to network with some of the brightest minds in the business. MBA students past and present often talk about their MBA college circle of friends that they would not have met without their MBA program. These days, this is simply not the case, given the improvements technology and social media anyone can connect and get access to anyone else all over the world.
- Anyone Can Do An MBA – In late 80’s early 90’s, having an MBA on your CV meant that you were part of very small circle. These days this is not the case. According to a recent article in the Wall Street Journal “U.S. schools granted over 150,000 masters degrees in business and administration in 2017“. From a personal perspective, seeing an MBA on a CV in the past would usually mean that your CV was read Top to Bottom. Today an MBA is just 3 letters!!!
- What Else Could You Do With The 150K AND Two Years – First year MBA drop-outs include, Bill Gates, Ted Turner whilst Richard Branson did not even bother go to college before he started his own magazine. The list is end-less and maybe one day it could have your name on it. Rather than spending 150K on school and spending two years studying, what else could you do with this time? Maybe you could start your own business and try and make a success of it? Would you seriously learn more from an MBA school than you would from starting your own business?
- An MBA Can Be Very Limiting – If you don’t have a set plan for when you leave your MBA program, the program could make you over qualified for roles on the market. If you cannot get an good job, it can be difficult to even get an entry level job after you have got your MBA and to make matters worse you will not be able to take a low paying job as you have all your debts to pay back….!!!
I don’t think MBA School is worth the investment. That all said, there is an exception. If you can get into a Top 10 in the world MBA School then I think it’s probably worth the investment. Having Harvard or Columbia on your CV opens a lot of doors that would be close without your MBA.
Recently we talked about the outreach method to send your CV directly to the hiring manager. Sending your CV with the first line being, “I have just graduate from Harvard and knowing that you’re part of the Harvard Alumni I wanted to connect with you”, would be a great first line and open many doors for you.