8/6/2024
The Misura Group is halfway through our summer internship programs with Spencer and Isaac. Both are undergrads, and both will soon be planning what they'll do after getting their bachelor's degrees. One popular option is to seek a Master's in Business Administration (MBA). But earning that degree can cost $60,000 up to $125,000 per year in tuition alone. Spencer and Isaac are asking: Should they pursue that route? If so, what's the payoff—particularly if they want a job in LBM?
I have strong opinions on this, but others have equally strong views. As a result, I have decided to showcase their opinions and then follow with my own. These views vary dramatically. Nothing personifies identity like education, and respondents had different ideas about the when, why, and how of getting an advanced education—and particularly about whether you should measure an MBA's ROI solely in financial terms.
Here's what five executives told me:
"Having hired hundreds of MBA recipients in my career, in most cases the MBA does not deliver an ROI. MBA's deliver the greatest return if you have a science or engineering undergrad degree and then you add an MBA. Too many young people jump too quickly toward an MBA. Go get the job first! Many companies will pay for your MBA. If a company has invested in you, they have plans to advance your career."— VP Human Resources for a $700 million company.
"MBAs provide huge benefits for people who want to expand into different realms of business, like finance. It's a great opportunity to pivot one's functional expertise and focus. There are also great networking benefits, including in different industries (for career resilience); and there's the opportunity to expand one's knowledge in areas like economics, accounting, finance, IT systems, tech, etc."— Private equity founder and business builder.
"I am not against continued education if it has a purpose. Too many people think they need an academic title beside their name, but don't understand how they will use it and pay back for the investment."— President, $500 million LBM dealer.
"Get some experience first. An MBA is not worth the investment if done too early in your career. It is more impactful for learning and skill development after gaining some years of experience to leverage. An MBA was a requirement to gain an executive-level position at my Fortune 500 company. "— President, $10 billion building products manufacturer.
"We are encouraging our leaders to pursue Six Sigma certification and Business Intelligence certificates. The dedicated time and expense is a couple of weeks, and the cost ranges from $2,000 -$20,000, providing better value than an MBA. The skills and competencies are relevant for a larger percentage of our workforce, and the impact on the company profits is significant." —President, $300 million LBM company.
Next, let's hear from Megan Cosgrove, Marketing Director at Misura Group and an MBA degree holder:
"My journey through the MBA program wasn't just about gaining credentials; it was about committing to my personal career goals and pushing through challenges. My career began with two undergraduate degrees and a role as a Marketing Manager at an OEM coating and molding company. It was an interesting, diverse, and challenging job. After eight years in marketing roles at two different companies, I realized I needed deeper business acumen.
Graduating with an MBA opened doors I hadn't even imagined. It equipped me with a comprehensive understanding of business operations, financial management, and international business. That understanding proved crucial when I stepped into roles like Director of Marketing for North America at a global pharma organization. Without the MBA, I wouldn't have had the knowledge or the confidence to tackle such significant roles.
The act of embracing continuous growth, whether through an MBA or other educational pursuits, is an asset. It's about committing to your goals, taking risks, and continually improving. What matters most is how you leverage your learning and experiences to achieve your aspirations."
Tony's View:
I am at arm's length with formal education. Intro to Anthropology and Macroeconomics make up the total list of my college credits. I wasn't built for college: I did not conquer my dyslexia until I was 29, and handling my Attention Deficit Disorder remains a journey. My solution was diving deeper into my LBM career out of high school, listening to an audio book every month, and immediately applying what I was learning.
Many industries struggle to keep their manufacturing plant floor labor in the plant, and it's common to have a "must have a college degree" hurdle to work in the corporate office. LBM differs from those industries. It's 100% performance-based and rewards the self-taught. I am grateful I lucked into the industry at 18 years old.
Today, I measure an MBA's value based on how it benefits a person's economic career while supporting personal goals. By that yardstick, an MBA diploma is expensive office art for too many people.
I agree with the advice above about gaining industry experience first. Pivoting from an academic theoretical setting to the workforce is a significant step. Once you select your career track, think about which industry is the best fit for you. Some industries are mature and stable but slow-growing, with a tenure-based culture: utilities and automotive are examples. Others are more volatile, with rapid, constant change and performance-based cultures: the IT industry, for instance. University MBA programs are often strong in particular industries. Knowing which industry aligns best with your personality will help you narrow the list of MBA programs you'd like to enter.
At the same time, understand that companies and people typically grow at a different pace. Career-driven professionals looking to optimize their expensive MBA investments grow faster than most companies. This forces them to make career moves every five to seven years, sometimes quicker. We look closely at these career moves when assessing a candidate because the kinds of moves made tell us whether the person is consistently looking to grow experience areas and responsibility. The moves also tell us whether that person is taking advantage of market trend opportunities—comfortably moving on once their goals or the company's direction shifts.
Risk tolerance and resiliency are the most significant factors holding back people's career growth. I would not expect an MBA to change those traits.
Whether formal or informal, continuing education is vital for anyone who wishes to advance. After reading this, you might conclude an MBA isn't right for you (or at least isn't right now). There is an ever-growing list of continuing education options that require little money and time and are highly valued in the workplace. The list of short courses on sales and leadership is long and can cost just $2,000 to $10,000. Every business school offers them. Most are great value!
Hire Smarter™ - Tony Misura
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