Well!!!! Many of young folks I see looking anxiously for getting an MBA. Many times not even realizing the clear take-away from it. Many see it as career accelerator, many see it as career transformation, and many see it as a “must degree to have” irrespective of the results.
Actually all are right in the above expectations. But yes, context need to be very carefully understood.
First, let me come to one other major benefit of MBA if its from a Top B School.
Its Social. You really get an elevation in terms of perspective in your society. It can be among friend circle, relatives, colleagues, etc.. Yes of course post MBA you sharpen your skills in terms of business acumen, presentation, public speaking, writing skills, understanding of economics, ability to look things at macro level, acquiring confident personality, etc.. These benefits you can also get from any good Under Graduation or any good Post Graduation degree. Its not only confined to MBA alone.
However MBA is a good medium to gain majority of these skills. It really depends on your college and the efforts you have put to get into that college and program.
Many times I have noticed people see MBA only for raising their pay packages and they chase this degree only for this sole purpose. Which in my view is not appropriate. Specially in last few years MBA is not giving that high returns to so many of the pass outs. In my view average is hovering around modest package rise of 40%. Which is far less when you incorporate huge efforts, opportunity cost, fees, etc.
But is this the real gain out of this coveted degree. Should you need to drop the idea of MBA hence?
Why so many of us look at such short term returns out of it?
Don’t you think that post MBA you have some 40 odd years remaining to contribute to corporate world or more appropriately to the society as whole. The returns are immense when you expand this scale of ROI say over the period of 5 or 10 years.
It makes you eligible for leadership roles in long runs. It also enables you to consider entrepreneurship roles for yourself. Undoubtedly it gives you a confident personality.
Many more roles can be don by graduates of business schools. MBA is more absorbed when you join after significant work experience which can vary from 3 – 8 years. Few years of working before MBA is useful in my view. Else your chances of taking outcomes from hard earned under graduation will go in vain.
Also its important to understand that running after mere packages is a serious mistake. MBA sometimes can be a tough journey. Post colleges sometimes you don’t land up in cosy job. Actually many who join, come after leaving their cosy jobs. Coming out of cocoon of a comfortable environment is not an easy decision. I’ve seen many of my friends who postponed and finally abandoned their plans for having an MBA. They were not convinced with the mediocre returns after such Herculean inputs.
Thinking Big and Thinking Differently is very important.
MBA is not a magic wand. Its a degree to equip you with certain skill sets. Its up to you how to make use of it in your career and also in your journey in society.
Opportunities for MBA graduates decreases drastically in a laggard economy. Which majority of us witnessed in last 5 years in India. For example, Growth Rate in India decreased to around 4.5% in last two financial years. Before that also, it was hardly promising.
Average packages at IIMs were best reported last time was in 2007 – 2008. Before Lehman Brothers got busted and global recession silently stepped in. Gone were the days when MBA graduates used to visit the big car brands showrooms for choosing. Rather many started wondering whether packages will be sufficient to meet hefty education loans which they took.
By this blog I really want to project the realities of MBA. At least in India as of now. But again, ROI best can be calculated in long runs. Which in my view can give glorious results. Writing this I just got remind one old incident, one of my friend who was passed out of Darden Business School, shared his initial days of there. He told me, that they were greeted from their Head on the very first day with this line, “Congratulations, now you all are Millionaires”. Then many guys made amused expressions on their faces. He later told them, don’t get amused, in matter of few years you will see the richness coming in your way, and for sure you are going to be in the millionaire’s club.
It’s not again I am strongly pitching for MBA, I also accept their are sufficient challenges in your way before, during, and after MBA, so what I am saying its your choice. Don’t follow madly after this attractive degree. Yes at the same time don’t calculate ROI in very short runs. Choose wisely. And importantly listen to your heart.
And last but not the least remember “Your College Name Becomes Your Middle Name”