5+1 things to consider about your MBA
When you go to any MBA program, you will find the professors, alumni, and all your classmates love to speak in paradigms, 2 x 2 quadrants, alphabet soup like 4Ps and 3Cs, and wealth of other pithy little business acronyms. As you become a fully initiated member of the MBA tribe, however, all of this seeming gibberish will start to make sense. The schools are really trying to give you a set of easy to remember business models that you can quickly apply to various aspects of business. In the spirit of getting into the MBA mindset right away, here are 5 W-questions and 1 H-question to think about when considering your MBA degree.
Who?
This one is pretty easy, the Who is you! The question, however, is which you? The you right now with your current experience? The you next year? The you in three years? In my opinion, there is no need to rush into the program with only 1-2 years of experience. One of the biggest benefits you receive (and that others receive from you) in the program is your working experience and your ability to explain what you actually did when faced with real-life business difficulties. This is where the real learning comes in, so the more experience you and your classmates have, the better the class discussions and overall learning experience will be.
Why?
This is a loaded question. Because you want to increase your business knowledge? Because you want to study with a bunch of other like-minded really bright people? Because you hate your current job and want to get the hell out of it (you are called a career changer)? Because you want to go higher faster (you are a career climber)? Because you want to get rich? Because you want to wait out a recession? Because you want bragging rights? Because you want a career break? Because you need a career laundry? Because you really want to get rich? Because you have no idea what you really want to do with your life and two years to think about it sounds pretty good? Well, all of these reasons are fully legitimate, some are just more truthful than others! Whatever your reasons, it is a good idea to think about why you really want to get an MBA, as it will help you clarify what you want to get out of the experience, and, ultimately, which program will be able to deliver what you need.
What?
Perhaps this question would be better phrased, “What kind?” This is where you need to think what kind of environment you want to study in. Do you like cut-throat competition? Do you prefer a more laid back collaborative atmosphere? Do you want to study as quickly as possible and get back to work? Does a one-year program sound better or does a two-year program sound better? Do you want really want a general management degree, or do you want to focus on Finance only? Would perhaps a Masters in Finance be a better fit?
Part two of this question is “What do you want to do after?” Do you want to switch from industry to finance? Do you want to switch from finance to industry? Do you want to be a consultant? Do you want to be in marketing? Do you want to be in operations? Having at least an idea (and understanding that this is highly likely to change) of what you might like to do after the program will help you narrow your school list in finding the best fit program for you.
When?
This question has some cross over from the Who question above. When do you want to go? Next fall? The fall after that? Should you wait another year to save up a bit more cash and gain more experience? Making the decision of when you want to go is a major milestone in the process. Once you have determined your target start date, there will be a whole slew of other When-related questions? When should I tell my boss I am going back to school? When should I take the GMAT? When should I take the TOEFL (if you are a non-native English speaker)? When should I apply (early decision, first round, second round, etc.)? When should I quit my job?
Where?
The Where question has some overlap with the “What-kind?” question above. It goes deeper, however, as where you study can play a big role in determining your post-MBA career. Location is clearly very important depending on what type of industry you want to get into. If you want to get into Investment Banking, programs in global finance centers like New York and London are ones that should immediately come to the top of your list. Each school has its own local and, hopefully, well-developed connections to the companies, banks, and consultancies around it. I went to the London Business School and 80% of my classmates stayed in London in Finance and Consulting after the program. That was in 2005, and the world has changed a great deal since then, but choosing where you want to study is an important part of the early MBA decision process. Are there other reasons you want to study in a specific location? Are you currently working somewhere cold and hate winter? California’s siren song might be calling for you. Want to stay closer to your family in a specific area? A good friend of mine did his MBA at the University of North Carolina, Chapel Hill for just this reason and it worked out great for him.
How?
And the bonus H-question! This is another multi-faceted question, but one of the most important is “How am I going to do this?” Another is “How am I going to pay for this?” How am I going to do this relates to your application process. How am I going to prepare myself to fit the profile of a successful applicant? This requires a great deal of soul-searching. A lot of your responses to the W-questions above will flow into this as well, as coming up with a short list schools that you want to go, and that are a good fit for you will dramatically increase your chances of success. The rest is taking a comprehensive look at your personal and professional achievements. What have you done well? What have you not done well? Depending on your application time line, do you have time to beef up on weaker areas of your application profile? Personally, I sucked at Statistics in my undergraduate studies. Partly because I was foolish enjoy to listen to my good friend who had already failed Statistics three times and convinced me to take a D in the class instead of dropping it and taking it again later. In order to compensate for this blight on my transcript, I enrolled in a night class at Berkeley (I was working in San Francisco at the time). I studied hard and got an A. Explaining how I dealt with this to the admission officers really helped in my successful program acceptance. Do you lack other experiences in your current position (not enough leadership, teamwork experience)? What can you do between now and your application to improve in these areas? Do you spend all your waking hours at work and have no friends, hobbies or outside interests? If so, now is the time to find a hobby! The admission officers like to see well-rounded individuals, so it is time to get cracking! Knowing what the schools want to hear and tailoring your profile accordingly is half the battle, so make sure you take the time to carefully research the programs where you will apply.
The second How question is, “How the hell am I going to pay for this?” If you are like 95% of the other MBA applicants, you are going to take on a frightening amount of debt to finance your business education. Depending on where you go, it is not uncommon to spend between US$160,000-US$200,000 for a two-year program. That is a lot of cake! Plus you have the opportunity cost of being out of a job and not earning during those years. This should not deter you from your noble quest, but you should certainly go into the experience with your eyes open that it is going to cost a hell of a lot of money. The good news is that for most programs, if you can get in, you can get financing. There are also potentially paid internships in the summer break, paid consulting projects, and scholarships along the way so it is not all bad. Nothing like an ocean of debt to clarify the mind, however, so have a good think if you really want to spend all this cash! You do have to pay it back eventually, so having a realistic idea of how you are going to do that, and if your program is really in a position to be able to help you secure a high-enough paying job to service your post-graduation debt is really important!
These questions are just the first steps on your MBA journey, but they are very important so consider them carefully and good luck!
