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Professional Development. Why do I need an MBA?. Learning for learning sake, for self-enlightenment, for advancement, to stay sharp. U.S. News & World Report College Rankings. 1. Harvard University 2. Princeton University 3. Yale University 4. MIT 5. Stanford University
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Professional Development Why do I need an MBA?
Learning for learning sake, for self-enlightenment, for advancement, to stay sharp
U.S. News & World Report College Rankings • 1. Harvard University • 2. Princeton University • 3. Yale University • 4. MIT • 5. Stanford University • 6. California Institute of Technology • 7. University of Pennsylvania • 8. Columbia University • 9. Duke University • 10. University of Chicago
Recently, I’ve noticed a phenomenon that I’ll call the “Life-Long Learner.” At almost every keynote and seminar I’ve presented at over the past six months, I’ve noticed one person in the room leaning forward with greater intensity than anyone else and taking notes more voraciously than anyone else. This person is always older than I am. He or she engages with other people with greater focus than anyone else in the room.After my presentation or during a break I invariably find out that this person is by far one of the most successful people in the room and is far more successful than I am. Four of these people were named Bob, Eric, Deb, and Jim. When I got a chance to talk with each of them in one-on-one conversations, I asked what they were hoping to get out of the meeting. Each person essentially said, “I’m always looking for another idea. I want to get better at what I do. My organization still has a long way to go and I want to help it get better.” Each time I walked away with a greater appreciation for the art of active learning. These great performers were serious about learning. The art of learning is a craft we can continue to master for our entire lifetimes. - HR Ladders newsletter -
Mental Agility • Active learning keeps you sharp • It helps slow the brain’s move towards mild dementia • It helps your speed in switching from one subject to another, from one concept to another, & dealing with one kind of employee to another • It helps you more quickly identify logical fallacies in arguments or sales pitches
Learning for career advancement two choices for earning Money Run your own business Work for someone else Business intelligence Classroom case approach – originally known as the Harvard Business Case studies Network with your classmates and instructors Accreditation Gets you in the door Occasionally useful data, but often is handled differently by different companies Keeps you marketable. M B A
MBA versus BA stats Since 1970, graduates with professional degrees have experienced unemployment rates that are 25% less than those with undergraduate degrees. 1.9% % & 2.4% respectively (Statistical Abstracts of the U.S.) By the age of 50, MBAs earn roughly twice the amount earned by their counterparts with only bachelor degrees. The breakeven point for an investment in an MBA is roughly 8.5 years. The Internal Rate of Return over the course of a career is higher than 17% The “average” MBA does much better economically than the “average” college graduate.
Running your own business The latest statistics from the Small Business Administration (SBA) show that "two-thirds of new employer establishments survive at least two years, and 44 percent survive at least four years." This is a far cry from the previous long-held belief that 50 percent of businesses fail in the first year and 95 percent fail within five years. Brian Head, Economist with the SBA Office of Advocacy, noted that the latest statistics are a much more accurate assessment of new business success rates, and that "as a general rule of thumb, new employer businesses have a 50/50 chance of surviving for five years or more." Better success rates notwithstanding, a significant percentage of new businesses do fail. Expert opinions abound about what a business owner should and shouldn't do to keep a new business afloat in the perilous waters of the entrepreneurial sea.
Why new businesses often fail Failure reasons: 1. You start your business for the wrong reasons. 2. Poor Management 3. Insufficient Capital 4. Location, Location, Location 5. Lack of Planning 6. Overexpansion 7. No Website (a well designed one!)
Why so many people try In 1970, the average US C.E.O. earned 28 times more than the average worker. Can you guess what's the difference in 2008? We are now at 370 times the average workers salary. U.S. CEOs' pay rose 313 percent from 1990 to 2003. By contrast, the Standard & Poor's 500 stock index rose 242 percent and corporate profits gained 128 percent. During the same period, average worker pay rose 49 percent while inflation climbed 41 percent.
Working for someone else • Investment • Less of you invested • At mid to lower levels, when you leave the building, you leave the job • Don’t need substantial capital to start a business
My own Business or Work for someone else? Major Decision Points: Do I have enough resources to keep eating while I build the business? Am I willing to put in total hours and dedicate my life to the business until it becomes solvent? Is my family situation such that dedicating myself to my own business will not lead to family problems? Can I deal with the potential fallout? Is it in my basic nature to start a business or work for someone else? (There is testing available to help decide this one.) How much of myself am I willing to commit?
Working for someone else • What you give up: • You need to identify with the company mission & vision • You need to expect that you are likely to change employers every 3 years, and possibly change occupations. • You need to be in a continuing education program so you remain marketable should that change happen before you’re ready for it. • If you really want to progress up the ladder quickly it’s best to be highly mobile, meaning being up for relocation.
Working for someone else • What makes you more marketable? • Positive worker attributes (willingness to go beyond the job description) • Learning new skills • Being supportive of those you work with • Always keeping your boss prepared for what might be coming down the line • Degrees, certifications, • Trade associations & charity work
Business Intelligence Research Research Research You need to know, what you don’t know, that you need to know.
Business Intelligence What companies hire the occupation that you’ve chosen? (Should you investigate this before you decide on a major?) If not at entry level, how do you get to talk to the person who might consider hiring you or recommending you to someone within the company? What is the culture inside the company where you’d like to work? Are you a match or a mismatch? Are you interested in working for a large or small company? Do you understand the consequences of the choice?
Business Intelligence How is the company doing financially? .. the Industry? Up turn or down turn? Is the job a stepping stone to better things or a dead end? What are the industry trends? What do I need to do to be more valued by the company? Breadth of experience? Visibility opportunities? Depth of company/product knowledge? Knowledge of the competitive marketplace? What stage of growth is the company in?
Accreditation • Gets you past the barrier to employment hurdle. • The Bachelor degree helps you learn to think (if you haven’t partied too much) • The Masters degree helps you learn more about the business world • The students are more often currently working & trying to improve themselves • The environment is more conducive to getting ahead in life
You’ve got the Masters, now what? Don’t forget to use the letters on your resume. If you’re young, use it in your cover letters as well. If you’re older, in casual conversation in the interview process. Don’t expect that the business where you become employed will apply the knowledge you’ve learned in the same manner in which you learned it. There are many business owners who did not get to their positions by the collegiate route, but rather by trying over and over again at what they wanted to do until they hit the right formula, for them. Accordingly, most early stage businesses are likely to have a stronger domination of the CEO. More mature companies are certainly more likely to be operating in accordance with what you’ve learned.
Final Thoughts • You have the credentials • You know your job • What will make you stand out from the herd?
Communication: Your most saleable or detrimental skill is how well you communicate your thoughts. If you have a difficult person to deal with you have to learn how to approach the person so they are more receptive to listening to your opinion. Remember, just getting them to listen can be a major challenge. Getting them to act on your recommendations will likely be the result of: Your research on the subject Your description of the pros and cons of various alternatives Your persuasiveness in presenting your ideas. (plug for Toastmasters)
Volunteer There’s an old Army adage from the ranks to never volunteer for anything. If you want to get ahead you need to do more than is expected of you. When you offer to volunteer for a project it says that you are willing to do whatever it takes for the home team. Even if your effort is not entirely stellar, the attitude which it presents is very positive from the employer’s perspective. Of course, if you see such an opportunity coming your way, do what you can to visualize all the possible objections ahead of time with reasoned responses. Don’t boast, but find a subtle way to take credit for your work.
Visibility When you have the opportunity, be sure you’re overly prepared. You don’t get many times to shine, so when you do, seize the moment. The old adage “It’s not what you know, but who you know” is closer to the reality. Today you have to know your stuff AND senior leaders need to know that you do.
