MBA Misconceptions

<p>If you want to go to a top 50 program for the same price of Houston Baptist, try U-Florida MBA:</p>

<p><a href="http://www.floridamba.ufl.edu/Future...ramSummary.pdf%5B/url%5D"&gt;http://www.floridamba.ufl.edu/Future...ramSummary.pdf&lt;/a&gt;&lt;/p>

<p>
[quote]
It's certainly not "always worth it". If you are already making 100k a year, it's quite likely not worth it.

[/quote]
</p>

<p>Depends on your definition of "worth it". If you love your $100k a year job and want to stay in the same industry, then no, perhaps it's not worth it especially when you consider the opportunity cost and lost OJT (especially in verticals where you learn more at work than you would in the classroom).
However, if you absolutely hate your job (some of my classmates were pulling in $300k+) and are looking to change careers into one (and at a level) that's on a relatively high plane, then a "top" school will most likely be worth it.</p>

<p>Just look at the starting salaries and tell me that the school doesn't matter.
I once saw a figure that the median 10 year salary for a HBS MBA is about 1 million, and you are fretting over less than 100k?</p>

<p>MBAs serve two essential purposes for people who get them:</p>

<p>1) Facilitating career-switching or promotion.</p>

<p>2) Educating and providing a network of contacts.</p>

<p>Most people look at the top MBAs and consider their strength in offering career-switching or promotion opportunities -- and that's when they'll pay a premium to go and be justified in doing so: The guy/gal who works as a software engineer for MS for instance who wants to get into venture capital or investment banking. He/she really needs an MBA to do that. To get into investment banking, he/she probably needs one from a top 15 to top 20 school. To get into venture capital or private equity, he probably needs to go to Harvard or Stanford -- or maybe other "lower of the top tier" schools such as Wharton, Columbia, Tuck, Haas and a couple of others as stragglers. Going to a second or third tier school, this simply is very unlikely to happen without the kinds of connections in place that render the MBA irrelevant to the equation.</p>

<p>Likewise, with consulting, if you want to switch into the likes of McKinsey or Bain or another top-tier strategy firm, one had better be coming out of a name MBA school. </p>

<p>Or even if you are in, let's say consumer products, but want to work in tech. It can be easier to make this transition when you've added an MBA and you will get a lot more choices coming out of a top name MBA program.</p>

<p>The premium for a top MBA has two components: 1) the value for helping you job switch right upon graduation during recruiting season. 2) the enduring value of your education and network of fellow alums. </p>

<p>Remember the dot-com bust after 2000? Well, there were folks who had just earned MBAs from top schools who were bemoaning being unemployed and would be saying things like "every day I am not employed, my MBA is losing value." Why would they say such a thing? Because from a top school at the time of hiring season, you are like a ripened fruit and this top name MBA gives you access and an attractiveness to industry that helps you demand a premium. But if you can't capitalize on that premium that is at its greatest level during a short window, it begins to matter less exactly where you went to school. </p>

<p>Take for example a friend of a friend who got laid off from investment banking during this time, about 3 years out of Harvard or some place on that level or close to it. He had to leave the profession even though he actually liked it. Why? Because, after having to leave his job, he was too stale to get hired as an entry level guy and wouldn't have wanted the salary and the responsibilities anyway. And he wasn't experienced enough with only 3 years to command a senior position. His MBA was good for one entry only, essentially, he felt.</p>

<p>A top MBA often provides you with opportunities that are only available for a limited window of time. Otherwise, that MBA serves more the functions laid out in number 2 of having been a good education (or not) and a good network (or not). It doesn't matter how strong your network is, though. If you are 4 years out of a top MBA program, it is very unlikely you can switch at that time into investment banking or other similar careers. </p>

<p>If you want to stay in your industry or in your job, it begins to matter a lot less that you have an MBA from a name school.</p>

<p>Then you can start to focus on number 2 as being of almost sole concern for you. And it is relatively simple to ask and figure out based on evaluating programs and their content whether the quality of education and network of contacts will be sufficient to justify extra costs or not.</p>

<p>I'd consider your goals and work from there. If you want to switch careers, you'd better be going for a more reputable MBA. Consider who recruits where you want to go to school and go from there. If you are just putting another notch on your belt and refining some skills, opting for the lower cost MBA could be fine. If you look ahead and see a career of moving around and jumping from company to company, or you are in an unstable industry, getting the name MBA can help with your credibility as you face new prospective employers, though the further you get away from school the less people care about your degrees and the more they care about your experience.</p>

<p>I have a friend with an MBA from a top European business school, and he has so mismanaged his career that his MBA just begs the question of him: for someone of so much promise, how did you end up doing so poorly, never keeping jobs for that long, jumping industries, etc? </p>

<p>He's a lot less well off than the CEO of Hewlett Packard who has a Bachelors in Business from a non-name school, a proven track record at one company and now at HP, and a whole lot of talent. A degree only gets you so far. A name MBA can catapult you into a different league, though. And then once there you are up to the old-fashioned task of proving yourself day-to-day. A name MBA can be virtually the only way to get into that league, however.</p>

<p>What league do you want to be in?</p>

<p>This is a question that needs additional information. One basic question is, why do you want to earn an MBA? Is it to enhance an existing career, or to define your career? Quite a few people earn MBAs to enhance upward mobility in their existing company; for these people, it's more important to get their ticket punched by earning the diploma at any reasonably well respected program. If you hope that your MBA will define a new career, then a more elite program may have a bigger payback.</p>

<p>I'd be a bit leery of programs that nobody has heard of. While the college mentioned by the OP may be known regionally, I think some hiring managers will be skeptical of programs that sound not very selective. While a selective program doesn't make the individual student smarter, it does tend to raise the level of discussion and team projects, which are what B-school is all about. Higher selectivity also allows more rigorous courses - even those that have similar titles.</p>

<p>I'd tend to rate the importance of a B-school's prestige as somewhat more important than undergrad school prestige (as much as people obsess about that here at CC). I've seen employment ads that actually state "Top 5" or "Top 10" MBA programs. That's not typical, of course.</p>

<p>In evaluating business schools, I'd look too at corporate relationships - who recruits at the school, what kind of internship opportunities do students have, etc. (Many great MBA job opportunities start as internships.) Don't be afraid to ask the hard questions.</p>

<p>Looks like we were composing messages at the same time. Great points and well said, BedHead.</p>

<p>
[quote]
Looks like we were composing messages at the same time. Great points and well said, BedHead.

[/quote]
</p>

<p>Thanks, but brevity is the soul of wit. You said pretty much the same thing in much shorter time.</p>

<p>HBU:Harvard::Apartments:Mansions
HBU and Harvard are both schools that offer MBA programs..
Apartments and mansions are both homes..
Now we have to consider the quality.</p>

<p>And this is coming from a high school senior with asian parents that want me to go to top tier schools and make lots of money to repay them and have myself a happy life, and so on.</p>

<p>I have a Wharton MBA. I think that employers look at top schools because the students are essentially pre-screened - in other words, you had to be pretty smart, have good scores, etc in order to be admitted in the first place. Also students must be ambitious etc. if they are willing to leave their jobs and spend 2 years and $$$ on the degree.</p>

<p>As others have mentioned, the contacts and friendships (with profs and students) that you make at top schools can be valuable throughout your lifetime. But you have to be an outgoing person and make these contacts; it doesn't happen automatically. If you don't, you will just be a face in the crowd and the degree will have less value to you.</p>

<p>An MBA from a top school opens many doors and provides initial credibility vs. an unknown school. As others have said, this wears off over time and your actual achievements and performance become the most important. If you stay within one company, the top school MBA will give you initial clout in getting in the door, but after a few years your performance, political skills, etc will determine your outcome. (for instance, the president of J&J's Venture Group has a degree in phys ed from West Chester University, no top MBA at all). If you switch companies, a top MBA again will open doors for several years, but again after awhile your achievements become most important.</p>

<p>If you provide a service (like consulting) an MBA from a top school provides some continuous mileage because you're always presenting yourself to new clients, and they like to see strong credentials. </p>

<p>There are many, many MBAs out there. An MBA from an unknown school can add little/no value to your employment possibilities.</p>

<p>
[quote]
If you provide a service (like consulting) an MBA from a top school provides some continuous mileage because you're always presenting yourself to new clients, and they like to see strong credentials.

[/quote]
</p>

<p>Great point. I was in consulting, and potential clients can be like potential employers. They want to see they are hiring the presumptive best.</p>

<p>
[quote]
There are many, many MBAs out there. An MBA from an unknown school can add little/no value to your employment possibilities.

[/quote]
</p>

<p>I find it interesting that as a person with an MBA from arguably the best business school in the world (a consensus ranking -- essentially all the rankings from WSJ, US News, etc. averaged together -- put Wharton as #1) said little about the actual education. I believe Wharton educates its MBAs as well as anyone, but a good friend of mine who got his MBA there said that the important concepts of the program could essentially be learned in a month. Another friend who got his MBA at Haas/Berkeley and worked for a prominent strategy consulting firm for several years put the learning time for the essentials of an MBA at one semester and said he thinks that two year MBA programs are far too long. If that's really the case, one spends at least 3/4 of one's time at an MBA getting the career switching value and the network value. </p>

<p>To the OP, assuming you didn't just create this thread to start a debate (I noted you only had one or two posts), why haven't you divulged more of your situation to help people give you specific advice?</p>

<p>IMO, and this only my opinion, so take with a grain of salt from some who will be attending a top 25 rated EMBA program (so, not really a top 25) with currently 8 years of engineering experience in the Biotech/pharma industry... meaning, the knowledge I plan on obtaining from an MBA I most likely have not had the opportunity to learn elsewhere in my career.</p>

<p>With that said, I thin the MBA programs at all accreditted schools is most likely adequate for teaching the material. I think one school may be better at certain aspects than others (i.e. leadership training, entrepreneurship, foreign business stuffs, etc.) but I doubt any one is completely lacking. For that situation, when looking at schools, I would think that you should try to target schools that "specialize" or offer specific programs you are interested.</p>

<p>I think the only big distinguishing difference betwee the top tier vs. non-top tier is the prestige attributed to the school. Now, I am not going to down play what such prestige brings; knowledgeable teachers, dedicated students, competitive admissions, etc... All which indicate to prosepective employeers that a student graduating from those schools are definitly top noch. </p>

<p>Does this mean that a top noch canidate can only come from these schools? Of course not. However, if you are running a business (and I hope we all will be one day) what would you want? A sure thing or a promising canidate from another respected school? How about someone from Harvard Business school, not experience vs. 10 years business experience just out of State U? </p>

<p>IMO, it depends. And that's the best awnser you will get. If you go to a non-top tier school be prepared to have something additional to bring to the table if you plan on competeing with a top-tier canidate, especially if they too have something else on the table.</p>

<p>bschoolwiz, if you want to go to Houston Baptist, go right ahead. Who are these people to tell you you can't? You don't know them, and more importantly, they don't your academic strengths, your fincancial situation, your preferences in a college, or you as a person. People have to remember that the whole key to picking a college is choosing the one that's right for YOU, not someone else. If that school is Houston Baptist, then go to Houston Baptist. I'm sure you'll do fine there.</p>

<p>
[quote]
Who are these people to tell you you can't?

[/quote]
</p>

<p>We own him. We can tell him exactly what to do with his life, and he has no damn choice. </p>

<p>
[quote]
meaning, the knowledge I plan on obtaining from an MBA I most likely have not had the opportunity to learn elsewhere in my career.</p>

<p>With that said, I thin the MBA programs at all accreditted schools is most likely adequate for teaching the material. I think one school may be better at certain aspects than others (i.e. leadership training, entrepreneurship, foreign business stuffs, etc.) but I doubt any one is completely lacking.

[/quote]
</p>

<p>If you want the basic knowledge, agreed. And if you look at what a couple of us said, this is pretty much in total agreement. In your situation, you just want to add some knowledge and you aren't really concerned with the career-switching "turbocharge" you'll get. You have enough credibility related directly to your work experience.</p>

<p>Frankly, I have seen MBAs from no name schools do fine;HOWEVER, usually they were with a firm who paid for their MBA when they went there. Usually, you are MUCH, MUCH better off going to a name MBA program than one that isn't well known from what I have seen. That said, I think that having an MBA designation does open some doors and helps with resume and credibility.</p>

<p>"bschoolwiz, if you want to go to Houston Baptist, go right ahead. Who are these people to tell you you can't? You don't know them, and more importantly, they don't your academic strengths, your fincancial situation, your preferences in a college, or you as a person. People have to remember that the whole key to picking a college is choosing the one that's right for YOU, not someone else. If that school is Houston Baptist, then go to Houston Baptist. I'm sure you'll do fine there."</p>

<p>Yes he has a choice, but he is simply justifying his education by finances.
It would be terribly foolish to deny a top program simply because you don't want to take out huge loans.</p>

<p>If you go to a top program, ur going to come out making 100kplus, which almost guarantees paying off loans in 1 or 2 years.</p>

<p>I would much rather get a Berkeley MBA for about 100-120k (50-60 per year),
and get a high paying 100k plus job, paying loans for only 2 years max,
then going to houstin Baptist for what, like 30k, paying off the loans with probably a measly 70k a yearish.</p>

<p>In the long run, you are likely going to rake in millions more going to berkeley over houstin baptist.</p>

<p>If you argue for your limitations, you get to keep them!</p>

<p>
[quote]

Where do people get this idea that if a MBA is not from a top school, it is worthless?

[/quote]
</p>

<p><a href="http://en.wikipedia.org/wiki/Oppurtunity_Cost%5B/url%5D"&gt;http://en.wikipedia.org/wiki/Oppurtunity_Cost&lt;/a&gt;&lt;/p>

<p>It's not worthless, but the other options are better.</p>

<p>
[quote]

I am considering getting my MBA at Houston Baptist University and I think it is a great choice, because of the relative low cost, great payment plan and they will reimburse you for the cost of the GMAT.

[/quote]
</p>

<p>You aren't honestly making a $250 test fee factor into your decision for b-school, right?</p>

<p>
[quote]

I just cant justify paying double for the same degree when most of the MBA core courses at the so called "top schools" are just the same exact courses I took as an undergrad(Economics major),just different names.

[/quote]
</p>

<p>This argument is absurd. I hope you realize that. Also, I can assure you that the economics you took as an undergrad is not as rigorous or as applied as that in b-school. This coming from a UChicago econ major, at one of the best undergrad econ departments in the world.</p>

<p>candidate#1: BA from random school + MBA, Houston Baptist University
candidate#2: BA from same random school</p>

<p>candidate#2 >> candidate#1</p>

<p>
[quote]
candidate#1: BA from random school + MBA, Houston Baptist University
candidate#2: BA from same random school</p>

<p>candidate#2 >> candidate#1

[/quote]
</p>

<p>Exactly. All an MBA from HBU shows me is that you can't make basic financial decisions (i.e. "I shouldn't flush two years of my life down the toilet").</p>

<p>I agree 100% with casare. A guy in my MBA program at UFlorida ws an economics/finance major at U-Virginia and told me some of the stuff we did in microeconomics was foreign to him.</p>