The Benefits of an MBA

by Andrew MacDonald

There's been a lot of discussion about the proliferation of MBAs. Many people believe that too many educational institutions are offering too many MBA programs, and too many would-be managers are lapping them up in an effort to get themselves on the fast track.

If everyone has an MBA, they ask, then what's the point? The fast track will simply become a main highway, clogged up with people going slow in the righthand lane. Others, noting the plethora of programs, question whether they're all up to the mark. The Australian Graduate School of Management's Dr John Toohey, for example, has gone so far as to call for government intervention to control the MBA market. He wants to ensure that the "quality of the degree and the overall perception of it" are not "undermined".

So, are MBA students being sold a pup? It depends on what they thought they were buying in the first place. Which begs the question: exactly why do large numbers of people -- who appear otherwise to be quite sane -- voluntarily give up large chunks of their time and money to get a Master's of Business Administration degree?

The short answer is that they want to have a better job and a bigger salary. MBA students are, by and large, people who want a better long-term quality of life, and are prepared to make sacrifices now to get it.

MBAs: the key to getting into management?

If management's where you want to be, then you're probably going to consider getting an MBA. But the truth is that having an MBA is not a one-size-fits all way to advance your career.

Ask anyone who knows. Ask a corporate HR Director. Ask a CEO. What they look for, first and foremost, is experience. A track record. Performance.

An MBA does not guarantee you career success because it doesn't guarantee that you can perform. It may give you the potential to perform, but it says no more about you than that.

If you don't believe it, consider the following. Two people are up for a senior management role. One has ten years experience at the required level and can demonstrate a number of successful achievements along the way. She has no MBA. The other has just completed an MBA, but has no experience to speak of. Who would you choose?

The fact is that corporate life -- and these days that includes the public as well as the private sector -- is about performance. If you're not performing, your qualifications won't matter. If you don't have experience, then you won't get the job.

Which MBA?

John Toohey may be right when he says there are too many MBAs in the market, but any first-year MBA student will tell you that intervention from the regulator is usually not the best way to sort these things out.

Market forces should be allowed to act to correct the oversupply. One of the best ways prospective MBA students can show they've got the right stuff is to be well informed, and to choose wisely. If they do, then the bad MBAs should lose support, and ultimately, disappear.

So, what to look for? MBAs are no different than most products. They're sold in a competitive marketplace, and a lot of what prospective students hear is marketing. The promises may not always match the reality -- and after you've invested three years of your life and $100,000 or more, that can be disappointing.

But it becomes easier if you think about what you want the outcome to be, and the common-sense, holistic approach to achieving that. If you want a better job and a higher salary, then you have to develop your career on a number of fronts.

Rules to follow when choosing an MBA program

• Don't let your MBA disrupt your career or your personal life; make it fit in. For this reason, distance learning options are the choice of a majority of MBA students -- despite the fact that most universities and business schools still promote campus programs as being better to protect their vested interests.
• For reasons outlined above, think very carefully before you give up work to earn an MBA. Sure you'll get your qualification quicker, but is that the point?
• Research your MBA options. Which one will best develop your strengths, and which one is the most versatile? There are a wide variety of specializations within programs—an MBA in Marketing could include courses in internet marketing, market research, or both. If you think you've made the wrong choice, change. It's usually easy to change programs.
• Don't do an MBA if you have less than five years' work experience. Not only will you be a less attractive employee than someone with experience, you won't be able to place what you're learning into any effective context.
• Talk to the people in your organization before choosing an MBA program. Ask your manager what he or she sees ahead for you, and if this will help. Do they see you as management material? Is there an MBA they value? Have your colleagues done an MBA? What did they like and dislike about it?
• Remember to look at a program's track record. How long has it been offered? How many students does it have? How many people have graduated? What are those people doing now? Does the program have the support and approval of any companies? Do they have a strong alumni program?

While many in the MBA market choose to ignore it, where a management career is concerned, experience and performance make are the key ingredients and formal qualifications are icing on the cake. True, the cake is a better cake if it has icing, but the icing on it's own isn't much use.

What this means is simple. If you're doing an MBA as a total solution to career development, think again. If you think that an MBA is the secret to being a better manager, think again. If you think that an MBA alone will get you a better job, or change your career, think a third time.

However, if your intention is to take a holistic approach -- to develop a diversity of experiences, to network with a range of people, to accept new and challenging assignments, to set and achieve personal and corporate targets -- and to complement all of this with a well-respected management qualification, then you may be in business.

About the Author

Andrew MacDonald is the head of APESMA Management Education, which offers Australasia's largest MBA program - the APESMA/LaTrobe MBA. The APESMA program is delivered via distance learning to students throughout Australia and the world, and has more than 20,000 graduates at various levels. Andrew has an MBA from the University of Queensland.