Let me say it aloud before I change my mind: be careful before you do an MBA in the post-financial crisis world, especially if you are going to take out a loan to do it.
Don't get me wrong. MBA is valuable and is an enriching experience. You meet a lot of smart people and get a broader perspective about business. The MBA, however, is not a ticket to higher salary or success. You have often been told why MBA is good for you, and the surveys indicating that an MBA can double your salary may seem tempting. Hold your horses. In this post, I shall play the devil's advocate and highlight the pitfalls you should be wary of.
The Europe factor: if you do not speak any European language fluently, don't have working rights for EU, and would like to work in EU post-MBA, avoid doing an MBA from Europe. European colleges, including the LBS, have dismal placement records compared to their US counterparts. Moreover, MBA on its own is not always considered a differentiating factor in Europe. Experience would always be more valuable. The current economic climate does not help either. Almost all English speaking MBA grads will try their luck in London, making the market especially competitive wrt US or India.
Salary surveys are not always accurate: salary surveys do not cover all students. People with lower salary may not always report their salary. It would be good to understand how representative the survey is and what percentage of students it covers. Also, exceptionally high salaries can skew data, so a median figure may be more representative (which is of course not provided). Take the indicative salary figures in that glossy prospectus with a pinch of salt.
Not everybody who does an MBA is looking for a job: students from business families, entrepreneurs, social entrepreneurs, students sponsored by their companies can comprise as much as 50% of an MBA class. This is great for networking. However, it skews salary figures and hides inefficiency of placement cells. Be wary.
Don't expect academic rigour: MBA gives you a taste of everything, broadens your perspective, and is great for networking. Do not expect academic rigour comparable to engineering or any serious degree. I guess charging a fat fee and then withholding the degree is not in the interest of marketing.
Poor placement cells: we were told point blank on day one- the responsibility to get a job is yours. Funny it doesn't say so in the marketing brochures. The experience has been similar for many friends at other top B schools in Europe, though there are some exceptions. Notably, I heard some positive things about Cranfield.
Be clear what your aim is: MBA can help you to change industry, country, and/or salary. Logically, jumps related to your previous industry will yield maximum jump. Previous consulting or investment banking experience is golden. People who are able to change all 3 to their satisfaction are few and far in between.
Not getting a job: there will be people who won't find anything even 3 months after MBA and they will not always report it. Eventually everybody will be " placed", but not by MBA college. Quite a few of my friends went back to what they were doing before MBA or accepted roles that they didn't necessarily want. Some like me took a pay and position cut to completely change industry. I'd put this number to at least 10% of the class (considering that a large number are not looking for a job, I think this is huge). And remember all of these are smart, successful people. Economic crisis definitely played its part. Nevertheless, it may be something to think about before doing an MBA.
Overall, MBA is a good experience and you do learn and meet wonderful people. At the same time, it has its pitfalls and you should give it a careful thought, looking beyond the glossy marketing material and promise of success. It is a significant commitment, and the movie is never the same as the trailer :).
Don't get me wrong. MBA is valuable and is an enriching experience. You meet a lot of smart people and get a broader perspective about business. The MBA, however, is not a ticket to higher salary or success. You have often been told why MBA is good for you, and the surveys indicating that an MBA can double your salary may seem tempting. Hold your horses. In this post, I shall play the devil's advocate and highlight the pitfalls you should be wary of.
The Europe factor: if you do not speak any European language fluently, don't have working rights for EU, and would like to work in EU post-MBA, avoid doing an MBA from Europe. European colleges, including the LBS, have dismal placement records compared to their US counterparts. Moreover, MBA on its own is not always considered a differentiating factor in Europe. Experience would always be more valuable. The current economic climate does not help either. Almost all English speaking MBA grads will try their luck in London, making the market especially competitive wrt US or India.
Salary surveys are not always accurate: salary surveys do not cover all students. People with lower salary may not always report their salary. It would be good to understand how representative the survey is and what percentage of students it covers. Also, exceptionally high salaries can skew data, so a median figure may be more representative (which is of course not provided). Take the indicative salary figures in that glossy prospectus with a pinch of salt.
Not everybody who does an MBA is looking for a job: students from business families, entrepreneurs, social entrepreneurs, students sponsored by their companies can comprise as much as 50% of an MBA class. This is great for networking. However, it skews salary figures and hides inefficiency of placement cells. Be wary.
Don't expect academic rigour: MBA gives you a taste of everything, broadens your perspective, and is great for networking. Do not expect academic rigour comparable to engineering or any serious degree. I guess charging a fat fee and then withholding the degree is not in the interest of marketing.
Poor placement cells: we were told point blank on day one- the responsibility to get a job is yours. Funny it doesn't say so in the marketing brochures. The experience has been similar for many friends at other top B schools in Europe, though there are some exceptions. Notably, I heard some positive things about Cranfield.
Be clear what your aim is: MBA can help you to change industry, country, and/or salary. Logically, jumps related to your previous industry will yield maximum jump. Previous consulting or investment banking experience is golden. People who are able to change all 3 to their satisfaction are few and far in between.
Not getting a job: there will be people who won't find anything even 3 months after MBA and they will not always report it. Eventually everybody will be " placed", but not by MBA college. Quite a few of my friends went back to what they were doing before MBA or accepted roles that they didn't necessarily want. Some like me took a pay and position cut to completely change industry. I'd put this number to at least 10% of the class (considering that a large number are not looking for a job, I think this is huge). And remember all of these are smart, successful people. Economic crisis definitely played its part. Nevertheless, it may be something to think about before doing an MBA.
Overall, MBA is a good experience and you do learn and meet wonderful people. At the same time, it has its pitfalls and you should give it a careful thought, looking beyond the glossy marketing material and promise of success. It is a significant commitment, and the movie is never the same as the trailer :).
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