All The Time, All The Expense? Is An MBA Necessary?...

Are MBA degree holders a dime a dozen? According to Marina Murray, associate director of research at the Graduate Management Admission Council, there are at least 250,000 students enrolled in MBA programs annually, and a whopping 100,000 MBA degrees are awarded annually. This represents at least 66 percent of all graduate business degrees conferred in the US, reports the Graduate Management Admission Council. There are so many MBAs floating around, Venture capitalist Peter Boyce in an interview with OneWire CEO Skiddy von Stade, says the advanced degree might now be unnecessary. Boyce himself doesn’t have one and has founded businesses. And it was way back in high school, that he created his first company fixing computers. During college, he co-founded two organizations to help unite young entrepreneurs. Now, he’s an early stage investor in student startups through Rough Draft Ventures, a company he co-founded, reports Business Insider. For Boyce, his MBA is his actual experience. “I almost feel like I’m getting my MBA on the go right now in a lot of ways,” he says. A lot of the programs are fantastically powerful, especially for helping folks understand “how do you take a company from 50 to 100 people internationally? So that management skill is not easy to necessarily do if you’ve never run a company that size before. So I think it’s an interesting compliment or supplement for someone that operates a company. I think for myself, being in venture [capital], you get to see early stage entrepreneurs go through those different phases and go through those different steps, and so I almost feel like I’ve gotten kind of a taste of it.” Also some studies have found an MBA today might not be worth it financially. According...

How Much Is An MBA Degree Really Worth?

What’s an MBA degree really worth? And how much more money does an MBA from Harvard, Stanford or Wharton get you over a career than one from Texas A&M, Ohio State, or the University of Iowa? Those are questions that perplex and confound many who are deciding whether to get the degree and, if so, where to get it from. Not everyone can get into the most highly selective business schools. So many candidates have to face the question over whether it’s worth getting the MBA from a second- or even third-tier school. A new analysis done exclusively for Poets&Quants by PayScale, which collects salary data from individuals through online pay comparison tools, shows that the MBA–even from schools that lack global or national caché–delivers hefty seven-figure income over a 20-year period. PayScale used its database of MBA graduates at the top 50 U.S. schools to calculate an estimate of median pay and bonus over the entire 20-year span. The numbers are conservative. They do not include stock-based compensation of any kind, the cash value of retirements benefits, or other non-cash benefits, such as health care. The estimates are for base salary, cash bonuses and profit sharing in today’s dollars over a 20-year period from from 1994 to 2014. They are not a projection of future earnings. But the estimates show that the MBA degree–despite all the second-guessing over its value since the Great Recession–is one of the surest paths to a lucrative career. For the most part, the results are exactly what you would expect: The highly ranked, big brand schools tend to deliver the highest earnings over a 20-year period. Harvard Business School’s MBAs come out on top, with median income of $3.233,000. Stanford MBA holders are...

Stanford Now Offering a Dual-Degree MBA/MA in International Policy Studies...

Stanford Graduate School of Business has announced that it has launched a new dual-degree program, where students can study for an MBA and a MA in International Policy Studies simultaneously. By pursuing both degrees as the same time, students can complete the dual-degree program in three years, rather than the four it would take typically. The new program caters to students who want to work in fields that bridge government and business, both in the U.S. and internationally. “The cross-disciplinary courses will prepare students for leadership roles in international organizations, nonprofit organizations, social enterprises, consulting firms, and corporations that focus on a range of issues such as international development, trade and finance, security, healthcare, and the environment,” according to a statement from the school. Students who are interested in the program must separately apply to and be accepted by both the MBA program and the MA program. The MA in International Management is offered through Stanford’s School of Humanities and Sciences. During the first year, students will take MBA courses exclusively. The second year will consist of a mix of business and policy courses, while the third year will be made up of elective courses and a practicum for the international studies program. Students at Stanford have the opportunity to pair their MBA with a number of other programs, including an MS in Environment and Resources, a JD, and an MS in Computer Science, among others. According to Stanford, around one in six MBA students pursue dual-degree options.Read full story: FIND...

MBA Rankings: Online And Full-Time Programs’ Ranks Demystified...

Business schools go to great lengths to improve their programs’ MBA rankings, which is probably motivated by how much value MBA candidates place in them. Where a school is placed in a certain ranking greatly influences applicants’ study choices. Rankings are one of a few ways in which business schools are utilizing big data, collating information on everything from career statistics to faculty credentials. The big rankings providers – the FT, Bloomberg Businessweek and The Economist, to name but a few – also muster considerable resources to deploy this data to the business school world. So you should probably understand how each ranking is formed, to better inform your choices. The graphic below, provided by the Whitman School of Management, provides an overview of how five major publications are ranking the world’s MBA programs – for both online and on-campus courses. Read full story:...

Can MOOCs Compete With Traditional MBA Programs?...

Companies want employees with the best credentials, which is why professionals in all fields use continuing education to improve their expertise – and their salaries. For senior managers, an MBA has traditionally been a credential that gives them an edge in the jobs market. However, getting an MBA can take time and money, and fewer companies are willing to help fund employees’ education; too often managers get an advanced degree only to leave for a better job elsewhere. Enter the Mooc. Massive open online courses are a relatively new phenomenon, providing distance learning to people interested in specific subjects. Some institutions believe that Moocs are going to change the way we think about business education. This is because they are generally free and open to anyone who is interested in a subject, without pre-qualification. There are currently more than 1,200 Moocs available with an estimated 10 million registered participants. While Moocs are available in diverse subjects, from advanced calculus to opera, they don’t help students earn college credits, at least not yet. Courses are starting to be recognized by educational institutions. The American Council on Education has already approved five Moocs for university credit, although it’s still up to each institution to decide whether or not to accept them. Moocs are being offered by major universities and business schools, and do give students an opportunity to learn from some of the finest educational institutions in the world. Harvard Business School, the Wharton School, and HEC Paris are among the latest institutions to offer Moocs in business, law, and corporate finance. The advocates for free online learning say that Moocs provide an opportunity to those who can’t afford college to get a better education. However, a 2013 study indicates that...

11 Reasons Why Getting An MBA Beats Getting A CFA...

One of the hottest debates among young Wall Streeters involves six letters — MBA or CFA. We’ve looked at it from the perspective of recruiters, comparing compensation and time spent getting each accreditation, but nothing beats hearing it straight from the horse’s mouth. We reached out to sources who hold either CFA charters or MBA degrees to find out what makes one better than the other. In this particular story, we’re presenting the MBA case. Agree to disagree if you want. Better networking during the process. According to our sources, Business School is where you meet people — your classmates, faculty, speakers, recruiters. They all come to you. A better-connected alumni base. The CFA Institute is trying to get better, but it just doesn’t have the close-knit alumni community that business schools around the country have been fostering for decades. If you think you’ll need that, the MBA is a better option. Better for working in a variety of sectors. Yes, you’ll most likely concentrate in a certain skill set, but with the variety of business classes at your disposal, the MBA is better for working in different kinds of jobs, from business journalism to the C-suite. Better on work-life balance. Yes, a lot of people do business school part time along with a job, and that’s tough, but CFA candidates always do it. To them, full-time business school students probably look as if they’re having the time of their lives. Better name recognition. More people simply know what an MBA is than the CFA. And one CFA charter-holder told us it really hadn’t helped him get a job. “You kind of get it, and then you tell your mom,” he said. Better for mentorship. At business school you...

Questioning the Value of an MBA

Bloomberg Businessweek is days away from releasing its best business school MBA rankings on Nov. 11. Twitter is abuzz with #WhyMBA as students and grads tweet about why their schools should top the list. But in today’s talent-based economy, how far can an MBA take you? For those who’ve spent months sweating over standardized tests and arduously preparing their applications, fair warning: Don’t expect too much from the degree, unless you have the talent to back it up. “MBA programs use the same insufficient metrics that colleges do, and that doesn’t get at whether folks have talent for managing or for entrepreneurship,” says Brandon Busteed, executive director of Gallup Education. Gallup finds that about one in 10 people possess the inherent talent to manage, and an additional two in 10 people have enough basic managerial talent to function at a high level with the right support. These findings suggest that the remaining seven in 10 people might not be MBA material. When it comes to entrepreneurship, the figures are more dramatic: Early Gallup research on the subject shows that about five in 1,000 working-age adults in the U.S. possess the rare talents of successful entrepreneurs. Says Busteed, “Business schools don’t look at talent — they look at things like grades and tests scores. So lots of students pay big money for these programs looking for talent as an outcome and don’t get it.” Most business schools probably don’t know what managerial and entrepreneurial talent look like because typical admission to their MBA program fails to consider it. But students — whether aware of their talents or not — seem undeterred. According to the U.S. Department of Education, the MBA has become the most popular master’s degree in America. “MBA...

New Poets&Quants’ Study Reveals 20-Year Income Value Of MBA Degrees...

A new study of the earnings potential of the MBA degree shows that graduates of leading business schools earn significantly more over a 20-year timeframe than others in the workforce. The analysis–commissioned by higher education website PoetsandQuants.com–also found that graduates of highly ranked MBA programs made much more money over 20 years than those from lower-ranked business schools. Highly ranked, big brand schools tend to deliver the highest earnings over a 20-year period. Harvard Business School’s MBAs come out on top, with median income of $3,233,000. Stanford MBA holders are next with $3,011,000, and Wharton comes in third with $2,989,000. Harvard MBAs, in fact, earned nearly twice as much as MBAs from Texas A&M’s Mays Business School who pull in $1,781,820 over 20 years. The analysis, done exclusively for PoetsandQuants.com by PayScale, which collects salary data from individuals through online pay comparison tools, shows that the MBA delivers hefty seven-figure income over a 20-year period. PayScale used its database of MBA graduates at the top 50 U.S. schools to calculate an estimate of median pay and bonus over the entire 20-year span. Employees who have only bachelor’s degrees are estimated to have earned a median $1,301,000 in the 20 years since graduation. All the MBAs in the sample earned $1,771,000–nearly half a million more than BAs. The greater the prestige of the business school, however, the more earnings a graduate accumulated.The median pay for those with an MBA from a Top 50 school was $2,266,000–another half a million more. MBAs from Top Ten business schools earned $2.8 million over the 20-year timeframe, while those with a Top Three MBA earned more than $3 million. “The analysis clearly shows the incredible value of the MBA degree,” says John A. Byrne,...

Building a network just as valuable as the MBA degree itself...

If I had to choose one takeaway to share as I make the transition from my MBA into the corporate world, it would be that relationships matter. Period. Looking back on my journey submerged in textbooks, case competitions, formulas and all-nighters puts a smile on my face. I acquired a top-calibre education, instilled the proper work habits, refined my teamwork aptitude and, most importantly, expanded my network in all the right ways. Mission accomplished, right? Absolutely. To me, my network is everything. But let’s rewind and unravel this topic further. It’s fascinating how what’s important changes based on immediacy and circumstances – and both graduate school and life thereafter can certainly attest to this. Let me give you an example. As a sales and marketing professional now, my to-do list is far from building pro formas, balancing income statements or calculating the EBITA of a potential investment. But a few months ago this stuff was important and consumed me. It’s incredible how fast-paced and volatile life and business are these days. Having a quality, diverse and expanded network with meaningful relationships can act as your foundation no matter the flavour of the week. A constant and stabilizer, if you will. The old saying “it’s not what you know, but who you know” is fundamentally changing the way we conduct business. I make sure to invest, cultivate and nurture my network every chance I get by keeping up-to-date. There’s really no point in having a network if you only reach out to it when you need something. Relationships take work and attention, and your circle of colleagues and acquaintances is no exception. I jumped into an MBA to gain business acumen and came out with the network, tool set and...

Wake Forest to drop traditional MBA program

After five years of declining enrollment in its traditional M.B.A. program, Wake Forest University is shifting gears to focus on an area where it sees greater demand — those M.B.A. seekers who want to earn a paycheck while studying. Starting next year, Wake Forest will no longer accept applications for a traditional, daytime M.B.A. program at its Winston-Salem campus. Instead, the university will expand its offerings for working professionals The decision was made after studying the program this summer and considering the needs of the market of students Wake Forest is trying to serve, said Charles Iacovou, dean of the School of Business. In the past five years, enrollment in the university’s traditional M.B.A. program has dropped from 123 to 98. At the same time, enrollment in the M.B.A. for working professionals program — which offers year-round evening and weekend classes — has grown from 242 to 304. “Our decision is a proactive step that will allow us to redirect resources and energy to meet the changing needs in the market,” Iacovou said in a news release. Iacovou, who started in his role as dean on July 1, said he sought feedback from a variety of people before making the decision, including faculty, deans from other graduate schools and alumni. Employers were enthusiastic about the idea, because their employees won’t have to disrupt their careers to expand their education, meaning the businesses can keep talented employees, Iavocou said. The university will continue to offer the full-time, traditional program through May 2016, so that current students can graduate. In the meantime, the business school plans to ramp up its evening and weekend classes, and increase the ways students can access them by offering e-learning. An online portion for courses opens...

Where to go to business school if you want the highest salary...

There’s more to choosing a business school than its name. Unless your primary goal is to make as much money as possible. Unlike undergraduate programs, where the schools producing the highest earners are often relatively unknown, the graduate schools with the highest-earning MBA grads are usually the ones with the biggest name recognition. When ranked by median mid-career pay, the top schools are Stanford, Harvard Business School, the University of Pennsylvania and the University of California- Berkeley, according to a report released Wednesday by PayScale.com. When schools are ranked instead by early career pay, the order changes a bit but the same schools dominate the top of the list. Two schools — the University of Chicago and the University of Texas at Austin — crack the top 10, displacing Harvard and Columbia, which have higher earnings for mid-career graduates. The strong correlation between brand recognition and pay doesn’t hold true for all graduate programs, says Katie Bardaro, director of analytics for Payscale.com. For most students, the degree and job earned will have a bigger effect on earnings than the school attended. (Consider, a public school teacher who graduated from Harvard likely won’t make much more than one who graduated from a public university.) For instance, fewer colleges and universities will offer certain technical or scientific degrees. And often, lesser known state or public schools may end up being among the best known within a particular industry, such as engineering or physics, if they have large research grants that allow for more ambitious projects, Bardaro says. MBA programs are much more commonly found on campuses across the country, she says, “so one of the things that makes people stand out is if they got their degree from this top tier...

Female MBA graduates lack ambition of male counterparts, says study...

The most highly qualified female business graduates lack the ambition of male counterparts in sectors such as engineering, manufacturing and natural resources, new research suggests. Some 84% of women taking management jobs in “tech-intensive” industries immediately after gaining a master’s in business administration (MBA) aspired to a senior executive or chief executive role, compared with 97% of men, according to a global study of almost 6,000 MBA graduates by research group Catalyst. The report was released in a week when Moya Greene, chief executive of Royal Mail and one of only five female chief executives in the FTSE 100, blamed cultural and societal expectations for blunting the aspirations of many businesswomen. Greene told an event to launch the “25 by 25” campaign, which is targeting 25 female FTSE 100 chief executives by 2025: “One of the most important things to do is to help women take ownership of their ambition and aspirations. It’s still disappointing when you see how young women view their ambition – and how others view that ambition. To be a CEO it’s really hard work and you really have to want to do it. For women, even in 2014, that can be a problem.” The findings suggesting that the top female business graduates lack the ambition of males in the technical sectors contradicts findings from other areas of commerce where studies frequently show that women are just as likely to aspire to the top jobs as men. Allyson Zimmermann, a senior director at Catalyst, said: “A lack of role models is certainly one contributory factor. Only 15% of the women and men in business roles in technology-intensive industries had a female supervisor compared with 21% in other industries. Women were more than twice as likely...