Tuesday, December 06, 2005
UK MBA: Oxymoron or Caveat Emptor
Wise Fool. Butt head. Idiot Savant. These are all examples of oxymorons. Though Europeans constantly bemoan all things American, the US has given the world a great many good things, Krispy Kreme, Google, cheap designer clothing ( yes- I know its all made in Mauritus or Indonesia or Thailand.Where else would Ralph Lauren, J Crew and Timberland produce this stuff. That's globalisation), and of course the best business schools, or should I say the best business school brands in the world.
A brand is the spiritual sign post of the consumer society. Without them we are all doomed. Just ask the experts. http://www.interbrand.com/who.asp.
Yesterday I opened the FT and the business education ( oxymoron?) supplement fell out. How dreary. It's usually consigned to the bin- but it did set me thinking.
Question : Why do so many talented UK executives insist on taking MBA courses in the UK. Its always been quite a mystery. Aside from the lucky few who are on employer sponsored courses or scholarships, in which case its perfectly understandable. A little time out of the office with a raised gold letterring airport novel and a cigarette under the guise of 'executive development' is always a welcome relief to the mindless boredom of corporate life.
What about the others- why on earth would you spend your own money for a qualification in the UK which in the long term seems to take you nowhere. Albeit the UK MBA graduate will certainly get there quicker.
The approximate cost of an MBA at LBS, including cost of living is around 30,000 GBP/52000U$ for one year full time.Not forgetting the loss of a year's salary and other non- financial opportunity cost. Lets look at what the FT has to tell us http://rankings.ft.com/rankings/mba/rankings.html. If we look at the LBS graduate salary today adjusted for purchasing power parity in U$ it's around 130K U$. Yes - I know the salary today figure doesn't count towards the ranking, but its the universally accepted measure of short term post graduation 'success'. This is about a 147% increase in pre-MBA salary. The real issue isn't this, but what happens in the long term to these graduates. Since the majority of MBA s eventually go into lucrative fields such as consulting or banking, being highly ambitious and full of energy one would assume they would eventually end up at the top of these companies. Why else would you do it? Because case-studies are cool, and courses in business ethics are all really interesting?
Here's a quick test for those hoping to 'invest' in an MBA from a UK business school -Can you name five CEOs, CFOs, CIOs, or even CAOs of multi-nationals or Fortune 500 companies from any UK MBA School? Hard isn't it. That doesn't mean there aren't any, I'm sure there are a few, but then even a blind squirrel finds a nut once in a while. Now do the same test with HBS - George Bush, Jeffrey Skilling, Meg Whitman,Jeffrey Immelt, Jamie Dimon. Its not an accident. Its all in the brand.UK business schools have very little brand value comapred to their US counterparts. Yet people insist on doing them , partly I suspect for logistical reasons. It's local, it's only for one year, bear in mind once you have one the damage is done, you can't undo it.
In the long run UK MBA schools seem poor value indeed.
RB
A brand is the spiritual sign post of the consumer society. Without them we are all doomed. Just ask the experts. http://www.interbrand.com/who.asp.
Yesterday I opened the FT and the business education ( oxymoron?) supplement fell out. How dreary. It's usually consigned to the bin- but it did set me thinking.
Question : Why do so many talented UK executives insist on taking MBA courses in the UK. Its always been quite a mystery. Aside from the lucky few who are on employer sponsored courses or scholarships, in which case its perfectly understandable. A little time out of the office with a raised gold letterring airport novel and a cigarette under the guise of 'executive development' is always a welcome relief to the mindless boredom of corporate life.
What about the others- why on earth would you spend your own money for a qualification in the UK which in the long term seems to take you nowhere. Albeit the UK MBA graduate will certainly get there quicker.
The approximate cost of an MBA at LBS, including cost of living is around 30,000 GBP/52000U$ for one year full time.Not forgetting the loss of a year's salary and other non- financial opportunity cost. Lets look at what the FT has to tell us http://rankings.ft.com/rankings/mba/rankings.html. If we look at the LBS graduate salary today adjusted for purchasing power parity in U$ it's around 130K U$. Yes - I know the salary today figure doesn't count towards the ranking, but its the universally accepted measure of short term post graduation 'success'. This is about a 147% increase in pre-MBA salary. The real issue isn't this, but what happens in the long term to these graduates. Since the majority of MBA s eventually go into lucrative fields such as consulting or banking, being highly ambitious and full of energy one would assume they would eventually end up at the top of these companies. Why else would you do it? Because case-studies are cool, and courses in business ethics are all really interesting?
Here's a quick test for those hoping to 'invest' in an MBA from a UK business school -Can you name five CEOs, CFOs, CIOs, or even CAOs of multi-nationals or Fortune 500 companies from any UK MBA School? Hard isn't it. That doesn't mean there aren't any, I'm sure there are a few, but then even a blind squirrel finds a nut once in a while. Now do the same test with HBS - George Bush, Jeffrey Skilling, Meg Whitman,Jeffrey Immelt, Jamie Dimon. Its not an accident. Its all in the brand.UK business schools have very little brand value comapred to their US counterparts. Yet people insist on doing them , partly I suspect for logistical reasons. It's local, it's only for one year, bear in mind once you have one the damage is done, you can't undo it.
In the long run UK MBA schools seem poor value indeed.
RB
Comments:
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UK MBAs are indeed worthless, but then so are many US MBAs.
A UK MBA is just worth a poor US MBA in my opinion.
A UK MBA is just worth a poor US MBA in my opinion.
# posted by 
: 8:16 pm
: 8:16 pm
Your comment on brand is very well taken.
An exec can learn as much sitting down with good books and talking to friends.
The cost in deferred income and tuition can be steep for the brand name, but it does open doors.
Many top US universities offer back door degrees to those that are already executives. This might be an easier choice. It will take time, money, and some travel, but the results look the same.
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An exec can learn as much sitting down with good books and talking to friends.
The cost in deferred income and tuition can be steep for the brand name, but it does open doors.
Many top US universities offer back door degrees to those that are already executives. This might be an easier choice. It will take time, money, and some travel, but the results look the same.
# posted by : 10:10 pm
: 10:10 pm << Home
