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IN THE NEWS: Are MBAs worth the investment?

March 28th, 2008

Summarized from CNBC’s European Business Blog. Ken Starkey and Nick Tiratsoo, authors of The Business School and the Bottom Line, ask if the endless list of MBA courses offered internationally are worth the price of admission…

THE DILEMMA: Unless you’re joining the elite networks of MBA graduates from top schools such as Wharton and Harvard, “evidence suggests” (no study quoted) that the typical MBA now brings only modest value to the average graduate’s salary, and has little impact on career advancement. In a world full of MBAs, possession of the label no longer differentiates, unless you have gone to one of the very top schools.

THE FIX: A Financial Times editorial said: “Institutions have to differentiate their offerings and create brands, something only a few have succeeded in doing.”

THE LITERATURE: Tellingly, many of the most popular business books of modern times have emerged from the self-schooled entrepreneurs. Indeed, the most successful book ever with Harvard in its title is actually What They Don’t Teach You At Harvard Business School: Notes From A Street-Smart Executive, by Mark H McCormack, founder of a sports management firm. (Incidentally, it has a sequel, What They Still Don’t Teach You At Harvard Business School.)

THE BENEFIT: Businesses and business systems have their own histories. If those who study and then run businesses are to make a real difference, and navigate through the challenges of the future, they must understand how to manage and capitalize on all aspects of business: not just economics, but also social, cultural, technical, and psychological perspectives.

Entry Filed under: A Catch-all Blog