Ok, I get it. Well, sort of. There’s a blog article from OnStartups – 10 things that you won’t learn about business from MBA School. It’s easy to climb onto the “bash MBA” bandwagon. There are plenty of people that boast their MBA pedigree or continuously look for opportunities to reference their pumped-up mental muscles. Sure, it’s annoying behavior, but MBA’s didn’t corner the market on continuously self-referencing their status, and some of the criticism is unfairly directed at the degree instead of the personality behind the behavior.
I’m in agreement with the author that there’s nothing better than working in the trenches to earn your stripes and scars and to give you practical, useful insight about running and owning a business; however, that is true for lots of professions that require advanced education or licensure: lawyers, architects, doctors, etc… There is no perfect training for being an entrepreneur and for that matter, being a leader.
What’s driving the anti-MBA backlash?
- MBA programs are money-makers for many universities. Rent an executive suite and presto, you’ve got an MBA program. An MBA program lacks some of the academic rigors that accompany other advanced degrees. Nope, that doesn’t mean that it’s easy – but there are comparatively different standards between getting a typical masters or PhD – proposing research, thesis, etc… and being subject to a committee of advisers and evaluators to whom you must demonstrate your individual excellence before advancing.
- Like lawyers, there are just too many. And when you have too much of anything, even a really good thing – you’re going to start finding some bad apples in the mix.
- This is a problem with the university system in general, but there is such a thing as being too convenient. The rigor of the experience can become watered down by versions of MBA programs that are expedited or expanded at such a pace that the product suffers.
- There are people that just aren’t a good fit for the degree and they finish. See 2 and 3.
- Enron – If you’ve seen the wonderful documentary, The Smartest Guys in the Room, you can’t help but think that there’s a little bit of Jeff Skilling in every MBA.
What’s an MBA all about, anyway?
- An MBA is a generalist degree with a broad introduction to understanding the underlying dynamics between finance, marketing, and operations. Every part of your business falls into one of those broad categories — and an MBA prepares you with the knowledge to manage those different elements, but not be an expert in any one.
- Most MBA programs are practical, rather than theoretical. They build on not only your previous education, but your experience. There are more seasoned, professional business leaders on the faculty, rather than academics. Don’t get me wrong, I’m not knocking academics – I’m married to one. But an MBA program is meant to be a practical program, geared around understanding and creating solutions for real-world business problems.
- An MBA is best suited for someone that has 3-5 years of working experience at a management level.
- One of my professors said it best: “When you leave here, you need to understand how to read a financial statement, effectively present your ideas, and manage a project.” If you can do that, and work on developing your skills as a leader – you’ve got a pretty good chance of being successful in whatever you do.
So, what’s the “profile” of successful entrepreneurs?
- They are great risk-takers.
- They excel at creating and working through their organization.
- They make decisions without complete information, without looking back and sometimes…even without an algorithm.
- They treat their businesses as assets that enable other comforts in their lives — without letting the businesses become a job. They have a vision for someday exiting the business and enjoying the financial rewards, rather than the psychological rewards and status of a particular job.
- They are great at creating a currency of relationships. I got that one from Tim Ferris.
What entrepreneurs could learn from an MBA program:
- The ability to uncover and understand the most important trends that drive cash-flow
- Developing a systematic approach and the ability to prioritize and mange projects through completion
- The ability to know when to bring in an expert – to recognize when the task at hand is beyond your personal capabilities
- Executive writing skills – if you can sum up a problem or course of action in a succinct way that 80% of your audience will understand – you’ll get more people on board
- The ability to write a business plan and use it as a living document… a roadmap to guide your professional aspirations and those around you.