Was my 200K USD Stanford MBA worth the time, money and opportunity cost?
By: Mahak Garg
Tags: Funding, Mba, Stanford, Education

“Was your 200K Stanford MBA worth the time, money and the opportunity cost? Knowing what you know today, and given an option to make that decision again, will you choose to go for an MBA again? Especially now that you have moved back to India?”

I was inspired to write this blog after a recent encounter with a fellow alumnus Mr. Alpha (pun intended). We both returned to India after our MBA. We discussed this question at length. We both had very different views. I was in the yes camp while he was in the no camp. With insights from that discussion, I sincerely hope that this article provides you with an unbiased view and helps you make a thoughtful decision.

Below are the 3 big buckets in which I measure the ROI of a Stanford MBA -

1. Access

2. Career

3. Perception

I have intentionally not included education in this bucket (what an irony!). This is because, I believe one can pursue the highest quality of education from distant learning platforms such as Udacity, Coursera, Udemy etc.

Let me start with my reasoning of why I would choose to do my Stanford MBA over again with a blink of the eye.

Access

In terms of access, Stanford has opened doors and opportunities that I did not even know existed. Access to an incredibly diverse, international network of alumni and professors who are an email away. Access to mentors, fellow entrepreneurs, businessmen, jobs and much more. Access to strangers on LinkedIn who respond to your cold messages. It’s as if people are willing to give you time, resources and opportunities because they believe that you are worth it.

For context, I had completed my undergrad from NSIT. While reputed, NSIT’s name and clout is far behind that of IIT’s. This means as NSITian, one has to constantly put in extra time and effort to prove their worth. The baseline is not the same. More effort to get to the best jobs worldwide, harder access to VC money for Non IIT/IIM founders, fewer inspirational alumni entrepreneurs to look up to etc. On the other hand, Mr. Alpha was already from the prestigious IIT, had worked in consulting houses and had witnessed enough success stories of IIT startups. The value add of the Stanford brand along with the IIT brand was insignificant. This was especially true since he moved back to India soon after GSB.

Pic Credit — YourStory article — 60 per cent of Series A companies in India have founders from IIT/IIM and all of them are males

To be crystal clear, we both agreed that the value add of the Stanford MBA (for each of us) would have been significantly higher had we decided to work in the US, especially in Bay Area. This was true both career and network wise. Take for example — More than 50% of Stanford’s graduating MBA class ends up taking a job in Bay area. This means if you are in the Bay area, you have a high chance of partying, working and closing deals with GSBers. The ROI would have increased tremendously. Above said, we both still feel blessed for the international exposure, the diversity exposures, the lasting friendships that we made and lots more. But as of today, it is hard to see the ROI of our carefully cultivated international network given we both moved to India. “We will save on hotel rooms during travel!” — we light-heartedly joked.

Career

Stanford MBA is indeed a paradise for individuals who intend to make a career switch. By virtue of clubs, career coaches, fellow students and alumni, one has an incredible opportunity to change gears. The summer internship serves as a transition point where you can experience an alternate industry at a low risk. The internship eventually serves as a meaningful experience for full time hiring. I saw several of my friends switch roles — A Chinese friend who switched from IB in China to Product Manager at Google, two Indian friends who switched from consulting in India to a PM role in Amazon, another Indian friend who switched from FMCG to clean energy and the list goes on. To get the exact number of individuals who switched industries, got a raise in their earnings etc, please refer to the employment report for Stanford Class of 2019.

Oh and did I mention that Stanford ranked №1 for highest post MBA average salary and Bonus. Unfortunately for both Mr. Alpha and me, we did not stay back in the US to earn those big fat cheques.

Median and mean base salary post GSB. Source — Stanford Employment Report 2018–19

Perception

The last of all is perception. I will break this into two parts — Self-perception and world-perception. The mere exposure to world leaders who were ordinary individuals just like you and me and yet are making outsized impacts in this world has changed my own perception of what success looks like. Hearing stories from the likes of Tim Cook, Satya Nadella, Phil Knight, Ray Dalio, Joel Peterson and actually interacting with them in form of small group events helped widen my perspective on leadership. Today I hold higher standard for myself and seek self-improvement and a growth mindset on daily basis. I think deeply about the legacy that I want to leave behind myself. I often ask myself the question “What kind of leader do I want to be and why should people follow me?” I think these perceptions are like positive feedback loops — More on this on my youtube meditation page — Strong positive thoughts create strong positive actions –> positive actions create an elevated outcome. Second part is other people’s perception of me. The magical knowledge that I am from Stanford fundamentally shifts people’s perception of who I am and what I am capable of. The baseline has now shifted. For good or for bad, Stanford brings in an inherent bias that helps you leapfrog.

So the point I want to drive home is that the answer to “Should I pursue an MBA? Will it be worth it?” will be very unique to your individual situation. It is not a one size fit all answer. I want for each of you to think very critically on why you want to pursue an MBA and what is it that you want to achieve from the same. Don’t do it because you have nothing better to do. Don’t do it because your friends are doing it. It is a big drain on your bank balance and a big time investment. The opportunity cost is high. Make sure it is worth it.