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New MBAs don't know jack
| Image: iStock | Published: August 25, 2008
I've helped several people in MBA programs before, and so have been contacted by a slew of recent MBA grads in recent months inquiring about opportunities in the B.C. business scene. After congratulating them for completing the rigorous program, I had to give them some deflating advice.
Get over yourself, I tell them. You still don't know anything about today's business.
This is my standard view of MBAs. They've bought the whole package that the training confers on them a kind of priesthood status, and they can move right in and run or manage a business.
This is the underlying message in b-school marketing: Shell out 50 to 80 Gs a year for our program, and you'll instantly become a high-level manager earning bundles.
In some cases, that's true – if you work for any arm of government, which automatically raises your pay grade for any advanced degree. But in most cases it isn't.
Big companies – especially banks – usually hire MBAs because they know they've been trained in the best practices of big companies and so make good functionaries and maybe even analysts – some day.
But business is changing, and today, more and more companies want strategic or innovative or entrepreneurial thinkers who can see the big picture as well as individual details. I'm thinking of the chief of one of the biggest business intelligence operations in the world who bluntly told a consulting firm he kept his company private because he didn't want some "know-nothing 25-year-old investment banker with an MBA" running his company.
BC especially is an entrepreneurial business scene. But I haven't met too many MBAs who were pleased with the entrepreneurial training they received, if they had any at all.
So if your aim is to be a cog in a big company, and fight your way up, great, go for it.
If you want to work with entrepreneurial businesses, you're going to have to start learning all over again.
Am I alone in this kind of thinking?
Tony Wanless, CMC, is CEO of Knowpreneur Consultants, which helps businesses reinvent and innovate. Follow him on Twitter.
Comments
Well, interesting discussion
Comment by Tony Wanless, August 30, 2008 at 14:19Well, interesting discussion so far.
It appears I struck a chord by publicly (and, as is the limiting nature of a blog -- using a broad brush) putting into words the results of many private conversations.
I think the summation here is that an MBA is only as useful as the real-world experience that can be attached to it. No argument there. The best MBAs I've seen often obtained their degrees after time in the workforce, sometimes coming from backgrounds extremely different from business. Usually, they have made the commitment so as to round out their skill set and improve their performance -- and themselves.
I have immense admiration for people who do this. They are on a strategic path and they're very aware of what is required to travel along that path.
So, it seems to me the lesson to take away from this is that today, it's all about lifelong learning, and for many the MBA (or any other advanced degree for that matter) is a beginning step, not an end in itself.
If I can get all Zen about it, it's the journey that counts, not the destination.
I'd be interested in hearing thoughts about the role in business, and life, of continuous learning.
It is funny to discuss
Comment by Anonymous, August 27, 2008 at 10:08It is funny to discuss Business school and MBA in Canada, especially in BC.
I have to say all the business schools and MBAs in Canada are sucks. Their intention is try their best to ruin your business by transfer money from your pockets to their pockets.
Go to Business schools, go to US or China. Go for MBAs, go to US or Europe.
David
Tony, In a lot of respects,
Comment by Steve Thomson, August 27, 2008 at 08:34Tony,
In a lot of respects, I couldn't agree with you more, but at the same time you've likely cast your net a little too wide to include all MBAs and all people with them.
When I started in business, I only had a lowly B.Comm undergraduate degree and had to deal with a number of freshly-minted MBAs who had more attitude than their skills supported.
I think the issue is that too many people take their MBA without having real-world work experience first. Therefore, all these new MBAs have is theory that they're struggling to find situations for. Unfortunately, the real world doesn't always throw you curves that look exactly like your textbook examples.
Personally, I found that in the last year of my undergrad I wouldn't have recieved as much benefit from the year had I not been working extensively throughout my education.
Therefore, I'm a big fan of people getting experience before they get those initials behind their name. Nothing teaches like experience.
If nothing else, more co-op undergrad programs please?
Steve Thomson
Principal, SL Thomson & Associates Consulting
Oh, gimme a break. Because
Comment by Anonymous, August 27, 2008 at 07:08Oh, gimme a break. Because I've got an MBA I'm only suitable to be a "functionary or analyst"? I can't see fine details or think strategically?
What allegations would you make, then, of scrappy business analysts, Mr. Wanless? That they tend to prize their infallible run-and-gun insight above all else?
Mark
First a bit of background: I
Comment by Anonymous, August 26, 2008 at 13:42First a bit of background: I have recently completed an MBA and I manage the company I started 12 years ago.
My MBA program's entrepreneurial component was virtually non-existent. Most courses that had a component of start-up / entrepreneurial content were electives. The thing to keep in mind is that an MBA is very much a generalist degree and does not provide experience in the real world (like most masters / schooling). As a small business owner / founder I have found that there is a gulf between what I was taught in the MBA and how I ran my business (At first I attributed this to scale).
My impression is that the MBA is great for those that are in the larger corporate setting where they have the "stamped out of a mold" job title and duties. Where this breaks down is when they need to move out of their comfort zone and find a creative solution that doesn't fit the mold. I did however find it useful as it provided me with a much broader understanding of business in areas that my little company had not taken me.
Include me in that list that feels that my MBA program didn't meet the grade in terms of entrepreneurial training.
Interesting article.
Forrest Joy
.
I absolutely agree that many
Comment by nellery, August 26, 2008 at 13:42I absolutely agree that many of today's young MBA grads sadly lack any sense of reality when it comes to understanding the inner workings of today's corporate environment.
I think all MBA candidates should have 3 or 4 years of work experence under their belts before gaining entrance to business school as this would provide some form of context to act as a backdrop for the lessons and theories learned in the classroom. It would also help deflate some of those MBA egos.
I earned my MBA from Dalhousie as a mature student after running my own business for nearly 10 years. Many of my classmates had similiar corporate or entrepreneurial experience and I found that our combined backgrounds made for a very interesting and rich educational experience.
However despite my belief in a need for work experience, I still empathize with today's 20 something MBAs who are just starting off in the big bad world of business. What these young people lack in real world experience is usually more than made up for by their raw energy and intelligence. The real world experience will develop over time but most yound MBA grads have already developed their character by pursuing and completing what can be a very difficult designation to attain.
I still think the ideal situation for any business school attendee is to accumulate real world work experience before entering grad school, but I also don't think that young grads without the required experience should be written off too soon. We all had to start somewhere and I'll bet you'll find plenty of current CEOs with MBAs who will admit to knowing nothing about the real world of business when they entered the workforce. Lucky for them that someone looked past their lack of experience and gave them the chance to learn.
Nick Ellery
Managing Partner
CanTalk Wireless Solutions Inc.
www.cantalkwireless.ca
Hi Mike. Very erudite
Comment by Anonymous, August 26, 2008 at 13:16Hi Mike. Very erudite analysis. I agree completely.
And, "belief in the divine rights of kings" -- I like it! Guess my early training from the Jesuits reared up there.
You're right in your thinking that while schools can impart (sometimes very good) understanding of fundamentals and practices, it takes time in the trenches to fully understand the complexities of human nature.
Tony
I have spent some time
Comment by Anonymous, August 25, 2008 at 17:12I have spent some time working in a consulting capacity with small to medium scale businesses primarily in the US as an employee of a major consulting firm; and as a business owner and member of business boards in the US and abroad.. You might say I have a rather in depth perspective of what makes business work. I learned much of my expertise through many years of being on the road working within these entreprises and throughout various sectors of industry. Learning, understanding, acquiring knowledge and expertise along the way. It took some time and personal sacrifice of being away from my family.
I have also had to lead consulting teams and direct the work of many young MBA's and LLB's throughout the scope of various projects. To say that these highly educated and for the most part young people impart a level of sophistication and business understanding from the class room is one thing; quite another to impart experience and understanding from the real world of business where decisions and problems are not always scripted from a business case or model .
Instinct ,being able to relate to the client(owner, director manager etc) at his/her level and be convincing that you understand the business in the clients mind, level of problem and can solve the problem without creating overly sophisticated solutions is of critical importance for small to medium size business, at least in my opinion. Unfortunately the above group including some PHD's that I have worked with have alienated clients and created difficulties that have resulted in some projects recessing prematuraly. Much because of clients perceptions of the service providers and their inability to relate and identify with the client/owner and his industry.
I don't want to suggest these are every day occurences and these highly trained people are of no value. There are some exceptionally intelligent people who if patient could be that much more effective . A compulsory amount of time in these type of businesses as an intern or something like that would go along way to help better understand the psychological and human dynamics of entrepreneurialism that occurs in many businesses . Perhaps that would add to their effectiveness and impact on the company they choose to work at and give a greater sense of accomplishment most of them presumably want to achieve.
You are not alone in your thinking or for that matter off the mark . I would replace however the sense of priesthood to the phrase" belief in the divine rights of kings"
MIke Leigh
President and CEO
MLStrategic Management LLC
www.strategicbusinessmtg.com
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