Should I get an MBA?

I get this question a fair amount so I thought that I'd share some ideas. I never offer up a straight answer to this question because a couple years of your life is a pretty big decision.

First a little background... I was fortunate in that my first job out of university was an analyst position in a firm, which was then, called Schroder Ventures. The partners then were a mix of former CEOs and MBAs. I didn't really have the desire to spend 15-20 years in industry so I figured that I'd need an MBA to get ahead. After two years, I got my applications, filled them out, got my references... the full deal. The day before I was going to post them out the Managing Partner called me into his office and asked me what I wanted to stay. I was stoked because I loved working for him -- his team remains the best group of people that I've ever worked with.

The first lesson -- never underestimate your value -- I had my applications filled out, I was heading out the door -- guys like that don't ask what you want for kicks as you head out the door. It's a lesson that I've been reminded of time and time again over the years. Of course, if you are going to push the boat out then you'd better be willing for someone to say no.

Business school is, generally, about two things: transitions and networking.

Transitions -- it's a fun way to change career directions. Often it can be tough to change career paths as we become more and more proficient at our current jobs. In finance terms, I've been doing pretty much the same thing for fifteen years -- I have more experience but the nuts & bolts are just the same and what I was up to in the early 90s.

Networking -- you will be surrounded by excellent people. I think that networking is the most important aspect of b-school and for this reason, I always recommend... if you do decide to go then you must go the the absolutely best school that you hope to gain entry to. It's worth waiting years to get into that school. If I had gone then I would only have gone to Harvard or Stanford. Probably only Harvard. Why? Because the MBA graduates where the people that I most respected in terms of the folks I came across. Comes back to "being our goals".

More on networking -- as that is a key goal then it's worth remembering that once you make it to school. You need to meet the people, be liked and work well with them. The folks siting around you in your lectures are the most valuable asset that you are going to leave business school with.

A lot of people think that you go to b-school for skills. Perhaps but they aren't necessarily the skills that you'd expect. Take a McKinsey Consultant, give him a Harvard MBA and he'll still be unlikely to model his way out of a paper bag -- that's OK, he'll be smart enough to hire a guy like me to model 24/7 at less than one-third of his starting salary! Appropriate decision making and team management are the skills that generally are in shortest supply.

Teams and judgement -- the best schools help their students improve in this area.

Cost -- it's pretty expensive to go to b-school. However, it is a lot of fun at a good time in our lives. So I'd fact the leisure component into your calculation -- especially if you've been working 60+ hour weeks since your undergraduate. It's nice to decompress for a couple of years. So, the capital cost isn't one that I'd worry about -- so long as you are going to the absolutely best school.

Recruitment -- if you are looking for a transition then, in your second year, I'd be putting as much effort into your interviews as your classes. It's a relatively short window to make that transition. Again, the best employers tend to recruit at the best schools -- another reason to get yourself there.