To MBA or not to MBA? - Part 1

The question that plagues the mildly successful yet mostly ambitious. Let’s break down how you can make this decision well.

Understand your goals and emotions

What is the career problem or opportunity that triggered this thought? Some common motivations are:

Do a functional shift (aka “my job sucks”) - I’m an engineer and want to get into marketing. The MBA offers a paved road instead of the relative chaos of doing this myself.
Get a brand (aka “my resume is ugly”)- I went to a not so famous school for undergrad, a fancy degree could elevate my profile, unlock career opportunities and make me feel amazing!
Accelerate my career (aka “glaciers move faster than my career!”)- I’m already on my desired career track but the MBA can accelerate how fast I hit my career milestones.
Avoid marriage (aka “what is wrong with my parents”) - This hilarious sounding reason is sadly true in India where parents will allow their daughters to push off marriage if they are doing (allegedly) productive things like an MBA.
Do a location shift (aka “I want to work on Wall Street”) - No explanation needed.
More money (aka “Fucking retard Amit can’t do shit and punts all his work on me but gets paid more because he’s from IIM”) - Sabse bada rupaiya
Chill out (aka “chill out”) - Stave off the madness of the real world by entering the temporary cocoon of an educational institutional. Yours might be different or a combination of multiple things. Don’t just understand your reasons, acknowledge your emotions, think clearly, and dig deeper so that you don’t misdiagnose the problem . Many people are frustrated by their current workplace or their current boss, which makes them feel stuck and stagnant in their career. Such a person might unknowingly look at B-school as an escape, yet they don’t need an MBA; they need a vacation, some drinks, and therapy . And maybe a new job.

Understand what an MBA offers

Despite popular propaganda about the value of an MBA. I can attest to the reality that it does not fix all your character flaws, make your teeth whiter and transform you into a better person as soon you fork out your admission fees . It can give you a solid push towards betterment though!

So, what do you get? During the course you get

Education/Knowledge: You can learn new topics or go deep into things you were interested in. Many B-school professors are not only published scholars but also actively advising companies and participating in projects, etc . So, they’re in touch with the business environment.
New friends: Just like your undergrad you will live/work/play with lots of new people and find new members of your tribe.
A Switch [role/function/industry/location]: This is a result of a better resume and interview prep, placements (uncommon outside India), access to a hiring cycle, introductions of recruiting companies, visa, etc.
Salary bump: Works out for most people. After the course, you get
A Brand: A friend once asked me how I landed my job at Paytm (It was my break into product management from being a data analyst). “I just applied and got the role” I told her. “That’s what all the IITians and BITSians say. I also applied but never got a call.” Brand means your resume floats to the top of the pile, you’re more likely to get a interview call, your LinkedIn SEO gets a boost, and the TAM of your future mother-in-laws is much larger . Fair or unfair, it is how the world operates. The associated prestige of a fancy degree opens many doors. Relatedly it gives you an air of credibility. In some industries degrees may not matter, but lots of places in the world, the door remains closed unless you’ve paid the price in terms of some elite signal/symbol . Finally, status, it just feels cooler. “Did you know that Josh went to Harvard!” is a great way to get introduced at parties. A final off shoot of brand is Career optionality. You can try for roles in more different places with the weight of your brand.
A Network: Your batch-mates will be joining plum companies. B-school networks are more diverse in comparison to the typical Indian undergrad college . People enter from differing functions and sectors, later joining a wide spectrum of roles. In my batch alone, I have people in Private Equity, Marketing, Brand, Product, Finance, Consulting and even some folks in public policy . Far more impactful than your batch of course if your alumni network. It might span the country/globe, even have a strong foothold in certain sectors. With the prohibitive cost of an MBA, people are initially conservative and chase plum/safe jobs . That risk aversion is well over by 5 years with B-school graduates starting new business and ventures. Whether it’s a referral for a job or access to rare information, connects, or opportunities to join new ventures; as a member of the alumni network you get early access to some great opportunities and support.
Finally, the subjective effects are immeasurable. What’s the value of becoming a more confident human being?

Understand what it costs

MBA tuition fees are huge, no two ways about it. The costs don’t stop there. You also have the opportunity cost of foregone wages including raises and promotions . Finally, you have visa risk and job risk if you’re going abroad. There’s a ticking clock and potential hiccups even on student visas, coupled with risk of not getting a long-term visa. This is not just a financial cost, this can be emotionally draining, and nerve-wrecking.

That said, loans are easy to come by for good colleges, and people pay them off in 3-5 years. How fast you can pay it off but depends on your post-MBA job . People in lucrative areas can get done in <2 years. The trap here is looking at average salary instead average salary in your target sector post-MBA.

Understand how the value accrues to you

One might foolishly index the value of an MBA based on median salary and salary increase relative to how much you earn currently. But the value of the brand and network last for much longer than that, potentially your entire life. Landing a top job can be career-altering. Your value is a combination of your inherent capabilities and external signifiers that (we assume) indicate those capabilities . With B-school, you are suddenly more exposed to a network generating opportunities all the time.

Understand what MBA does not offer

A simple but fair reduction would be to call an MBA, a shortcut. Nothing stops you from learning finance, improving your speaking skills, or getting a fancy job without an MBA . There might be barriers, but none are insurmountable. Someone who works hard, get smarter, maintains a good reputation, and develops a good network, has good chances of succeeding with or without an MBA.

It is a shortcut but it not an automatic and eternal one. You get access to more opportunities, but they aren’t served on platter. You still have to go looking for them, be worthy of being offered them and be capable of making something of them . Making the most out of a network requires you to be savvy, the MBA degree won’t make you confident person who can seek out opportunities, you’ll have to do that yourself.

And there are alternate means too. A good brand like Google on your resume might arguably be better than 90% of B-school logos. We live in 2021, the most connected humanity has ever been . There’s Twitter, Linkedin, Slack communities and so many other ways to build your personal brand and grow your personal opportunity surface. Online networks and communities are competing with old school networks, eating a greater chunk of the pie everyday.

Finally, the MBA does not give you a brain implant that automatically improves your strategic thinking. It surely teaches a lot more buzzwords though. Part 2 to follow