Getting An MBA: Worth It?
By: Nitish Menon
Tags: Decision Making, Graduate School, Students, Mba, University

There have always been questions around whether or not one should get an MBA. More recently, it has become fairly common for people to state that an MBA is just a product of wasted time, money and other important resources. Part of this attitude has to do with the embedded skepticism that some communities have towards formal education in general. In that regard, I believe it would be important for me to express my views on why I think an MBA makes sense (majority of the time) for aspiring business professionals.

My decision to pursue an MBA was by no means easy. There were numerous thoughts flowing through my head about time, money, job prospects, etc. Like many of you, there was a huge opportunity cost I was facing by taking the plunge in joining a business school. I was uncertain about what kind of experience a business school had to offer, but I had a vague intuition it might be a good one (Side note: it turned out to be a great decision). I can confidently say that I have gained more knowledge, built stronger relationships, and developed my personality throughout the course of my MBA program.

Like most things in life, there are many agnostic views on pursuing an MBA as well. I’d also like to emphasize that you do not definitively need an MBA to have a successful career in life, but here are my top 5 reasons on why doing an MBA is important:

1) Structured Learning Environment

There are numerous and endless ways you can gain access to business topics like finance, accounting, and marketing, on your own, through books, online courses, and distance learning programs. So why should you bother with an MBA? When it comes to business learning, the additional value does not originate from the PowerPoints, textbooks, and case studies from class but rather from the discussions they provoke from your fellow classmate’s diverse backgrounds and opinions. Most business schools now also incorporate internships and on-the-job training opportunities as part of the curriculum which act as a great learning platform to leverage the skills learnt through the course of your MBA program. Personally, I believe the classes provide foundations for core subjects and tools we can use in our future careers. They also serve as a perfect refresher to core subjects before starting a new role with an organization. The program provides exposure in working with a broad range of business cases. Ultimately though, like every other learning experience, you will only gain from the effort you put into it.

2) Source Of Credibility (a.k.a “The Letters”)

You may think I’m sounding superficial (or would completely disagree) when I say that you should get the MBA for “the letters” or brand it holds in itself. Why would I say this is important? Hiring managers and recruitment processes around the world are fraught with biases. Sometimes certain degrees do help you to differentiate yourself from others by helping communicate what you know intrinsically, therefore, solving the adverse selection problem for recruiters. Depending on the industry, “the letters” can help you in career transitions horizontally, vertically, or into an entirely new industry. Having an MBA shows your capability to take on new responsibilities and also accept accountability for it. An MBA or advanced degree is practically a requirement in areas of banking, consulting, and private equity. If you have a look at all the senior personnel in an industry or company, they most likely possess an MBA or an advanced degree. You would aspire to be part of that club as you progress through your career, so having an MBA degree is already like a foot-in-the-door.

3) Change In Perspective & Mindset

The MBA facilitates a more expansive business outlook and mindset. The program tasks you with opportunities to tackle business problems from a managerial standpoint, which could further assist in some self-discovery. It has diverse topics ranging from strategy to market analysis, generally in which you have minimal exposure early in your career. Just having access to the sheer wealth of knowledge shared among fellow classmates with diverse backgrounds, ways of thinking and geographies would shape your approach in handling business decisions and foster a positive outlook on life. Take the time to reflect, set goals, and work your socks off to achieve them. Most people graduate from business schools and embark upon something entirely different from the industry they came from or advance into a more senior role that may have been inaccessible to them earlier. This shows that the possibilities in terms of career growth with an MBA degree are endless and could radically be influenced by your experience from the program.

4) Build Your Network And Chance At Success

A great question to ask is, “Will attaining an MBA increase my chances of becoming a successful entrepreneur or move into senior management roles?”. Entrepreneurs in general, and incredibly successful ones, usually love saying, “Look at me, you don’t need an MBA to be successful. Just follow your passion and you will build great business ideas”. Let’s backtrack a bit, and take a look at actual data here. 90% of start-ups and 80% of entrepreneurs generally tend to fail. Not to be a pessimist of any kind, but this is unfortunately the ugly truth. Normally, people only notice the winners. For example, when you look at Mark Zuckerberg or Jeff Bezos, you do not notice the executive coaches, seasoned mentors that have helped or are helping them every step of the way. They also tend to show a pattern of hiring MBA grads as their second in command like Sandberg, Ballmer, etc. Not to take away the fact that starting and running a business is an enormous life lesson by itself, but it also makes you painfully aware of your personal shortcomings (if any). An MBA can equip you with tools and a network that can increase your chances at success. Building and maintaining connections with classmates and professors will build feelings of mutual trust and friendship that will help you down the road in ways you cannot imagine.

5) Well-Rounded Personality Development

The MBA program usually comprises of students from various educational, cultural and professional backgrounds. It invites you to be part of activities, tasks, and projects that require meaningful interactions with other students. This broadens horizons and boosts your communication skills. The program also inspires you to be more aware, analytical, promotes team-building, and fosters critical thinking. An MBA is a great resource to have in order to boost your confidence and self-esteem as well as it pushes you out of your comfort zone and helps prove your competency through challenging assignments and testing measures. It is obvious that acquiring a new skill, or set of skills for the business world generates high amount of self-esteem. The feeling that you would be able to make an effective contribution towards generating value for your stakeholders post-graduation is unparalleled. If you can put a bunch of MBA grads in a room asking them to solve a problem, there is no doubt in my mind that they will come up with something extraordinary. Overall, it plays a vital role in grooming your character and setting yourself up for success in the future. Personally, I aspire to be an informed leader who can help make a difference in people’s lives. But that’s just me.

So if these reasons resonate with who you are as a person, you should start applications (even though it’s a daunting task) for a journey that would change your life. The MBA journey.