Last week I cited an article by Professor James Carlini that captured a big but sometimes forgotten point about the WorldCom fiasco. This week he begins a two-part series on the debate on the value of an MBA. Professor Carlini had picked up on a thread of MBA topics on this blog (potentially starting here) and was motivated to write some of his own perspectives.
One paragraph from Professor Carlini’s article really jumped out at me. He writes:
In today’s competitive and mobile society, values have changed. Some working professionals want convenience and expediency in getting an M.B.A. They have been sold on this as the criteria to select a school. There are online schools, extension programs and other avenues to go through instead of the traditional approaches that some schools still use. Tens of thousands of people graduate with an M.B.A. every year.
I haven’t followed the MBA supply and demand issues that closely, but from my vantage point in the blogosphere, I have heard from respected industry people that there may be too many MBAs out there and that this diminishes the value of the degree. Perhaps so.
My biggest concern would be that business schools need to make sure that their curricula and reading material are up-to-date. There has been some significant shocks and changes in the world over the past half decade. Some that come to mind are:
- major economic shift related to offshoring and potential marginalization of even innovation
- big changes in technology and viral diffusion models (e.g., Tipping Point-type stuff)
- stock market bubble bursting and change in demographic needs of business school students beyond consulting and investment banking
- corporate scandals and corporate governance concerns
- ballooning US trade deficit that will not be reversed for many years to come.
When I asked Malcolm Gladwell to what extent the "The Tipping Point" was diffused in business schools, he replied something to the effect of "it is too early to tell". Granted, I can appreciate the needs of business school professors to balance academic caliber literature vs. popular writing. Yet, for something that is on top of the business world (i.e., viral models) … well Gladwell’s response made me a little uncomfortable.
Steve Shu
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