How
to choose the right MBA for you!
by
topcareers.net/The
MBA Career Guide
Nunzio
Quacquarelli writes
Today, an MBA is the most prestigious qualification in the world. It offers the potential for talented young professionals to place themselves in the shop window for the most prestigious and highest paying recruiters in the world; companies like Accenture, Bain, McKinsey & Co., Goldman Sachs, Morgan Stanley treat the MBA qualification as essential for career changers seeking to join their firms.
Demand for places at the best business schools keeps growing every year. Rosemaria Martinelli, Director of Admissions at The Wharton School reports that applications have increased by 30% in the last two years alone. The Wharton School receives over 15 completed applications for each of the 780 places available. Of these, students from outside the US take up approximately 350 places. London Business School and INSEAD receive over 10 applications for every place available and also report demand increasing by over 15 per annum.
Thinking about an MBA Qualification
With
such intense competition for MBA places, I hope that some of my experiences can
be of assistance in helping people to think about where to apply.
When
I first started to consider taking an MBA myself, I was in my early twenties,
working as a consultant in London. I knew that I did not want to remain a
consultant for life, but rather wanted to run my own business, or have a role
that would allow me great autonomy. I had read about the MBA qualification
whilst at University and decided that I would like to have a professional
qualification that could help me fulfil these career objectives.
My
advice to anyone thinking about taking an MBA to change career, is to undertake
a self-analysis of why you wish to study for the qualification and what your
objectives will be. The first thing to do when considering business school is to
try to narrow down the types of career you might like to pursue, balanced by a
realistic self-assessment of your current abilities and skills base. Examine
your motives carefully. Determining where you want to work after your
studies should be a major part of this process.
Why
ask these questions first? For practical reasons, most application forms ask for
your career aspirations and want to see a clear, cogent explanation of where you
want to be in the future, and why that school can help you get there. For
example, if you think you want to become a management consultant or an
investment banker with starting salaries of over US$90,000, there are only 50 or
60 international business schools, of which 50% are in the US, where these
companies actively recruit.
How
much time can I realistically invest in an MBA? What
can I afford to pay?
Once
I had decided to take an MBA, I had to decide on my budget. MBAs are not cheap!
The standard period for an international full time MBA in the US is two years. Schools like Wharton, Harvard and Stanford cost approximately US$34,000 for tuition per annum. In Europe, London Business School offers a two-year programme, whereas IMD, INSEAD, Cranfield, Warwick and other leading programmes are one year. In Europe, the annual cost of an MBA can be as little as US$9000 or as much as US$42,000 for tuition, with books and living expenses a further cost.
However
financial aid opportunities exist that can make the most expensive programmes
affordable. Scholarships are offered by a variety of organisations, and many
local banks offer low start loans for the period of your study. I was also aware
that many companies pay back the tuition fees of an MBA qualification in the
form of a ‘sign-on’ bonus. I managed to receive some partial sponsorship
from my previous employer, but still had to pay for much of the course through a
bank loan. I was confident I could find a job afterwards that would repay the
cost of even the most expensive MBA programmes. So I applied to the schools that
I felt were the most prestigious and which also offered strong
‘entrepreneurship’ faculty.
I
would advise candidates to make realistic estimates of their earnings potential
post-MBA to judge what they can afford. MBA
salaries in Latin America, Central Europe and some parts of Asia are well below
US salary levels, though when taking into account cost of living, MBAs are often
better-off even at these lower salary levels. On average, in Central Europe, the
pre-MBA salary for an MBA is US$20,000 and the post-MBA starting salary is
US$49,000. On average in Latin America, the pre-MBA
salary is US$27,000 and post-MBA starting salary is US$51,000. On average
in Asia, the pre-MBA salary is
US$35,000 and post-MBA starting salary is US$69,000. The salaries in the US and
UK are significantly higher, with the average pre-MBA salary across these two
regions being US$42,000 and the post-MBA starting salary being US$78,000. Any
one with a strong academic background, blue-chip work experience and a
commitment to work hard, will find that an MBA qualification will pay back
within three to four years of completion.
Part-time
and distance learning MBA study are also serious alternatives. Over 35,000
people are now using distance learning for an MBA or similar diploma with
institutions outside the US and a further 60,000 are using US institutions. An
estimated 30,000 people are studying part-time. This approach is popular because
it avoids the need to leave your employment during your study period, and allows
you to live at home. For those not seeking an international experience, this is
a sensible option. Average costs for distance learning vary from US$7,000 to
US$35,000 spread over three to eight years. Within the Distance Learning arena,
the schools most often referenced by HR Directors in The MBA Career Guide
research include: Aston, Durham, Henley, Heriot-Watt, Manchester Business School
Worldwide, Open Business School, Strathclyde, Warwick (listed
in alphabetical order). By contrast US distance learning providers tend to
target a less well educated domestic US audience.
How
does anyone about to embark on one of the major personal investments in their
lifetime make a decision (certainly more important than buying a house because
it will affect your stream of income for the rest of your life)?
There are many rankings that claim to demonstrate which are the best business schools. Every ranking contains weaknesses. More importantly, each ranking uses criteria that may be vastly different from the needs and interests of the individual reader. When I chose to attend The Wharton School, I rejected offers from schools that were more highly ranked at that time, in the late 1980s. Instead, I focused on the strength of the school in the fields of entrepreneurship and finance, the two areas of greatest interest to me. I was also attracted by the numerous alumni from the school whom I met during the interview process and at the fairs I attended. These factors combined with a strong reputation were enough for me.
I
recommend that a systematic process should be adopted for selecting a business
school. I recommend the following factors should be considered:
1.
International reputation
Reputation amongst recruiters is an indicator of the quality of a
programme.
2.
Reputation locally
How the school is regarded by employers in the country in which one
wishes to work is clearly significant.
3.
Flexibility and convenience
How does the programme to meet your personal requirements: Part-time, one
year etc.
4.
Areas of specialisation
E.g. entrepreneurship, finance, marketing, technology.
5.
Profile of participants
Average age, educational background, work experience, languages required.
What
are the next steps for MBA Applicants?
topcareers.net, 27.08.2003