Why do an MBA? Assessing the ROI from a Professional’s Perspective
When I told my boss that I will be applying for an MBA, he questioned me:
“Why an MBA? What do you expect to gain out of it?”
This was my fifth year in the organization, and I was doing quite well in my role. At this point, I was working directly with the top leaders in my organization and had some great career opportunities coming ahead. The question really was about what would this degree offer beyond my career trajectory?
These questions echo in the mind of every professional seeking to integrate an MBA into their career path. It is essentially an evaluation of the ROI versus the forgone opportunity cost of earnings over the two-year investment horizon. To evaluate that, a simplified decision-making framework would revolve around three crucial factors:
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Professional Success before the MBA
My experience with business development, sales strategies, and product development – partnering directly with regional leaders and product directors in my previous organization –provided me with invaluable experiences in organizational dynamics and cross-functional teamwork. My contributions were recognized for presenting value propositions to enhance engagement with existing clients and seek opportunities to compete effectively in new markets.
Previous professional success for me, as well as for many others, is now serving as a foundation to build on our business acumen and market perspectives. It is enhancing our understanding of global business strategies, advance management practices, and applications of business theory to drive value and growth for organizations.
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The Opportunity Cost
Evaluating the costs of stepping away from a thriving career is significant, especially for international students whose stakes are even higher. It is a substantial investment of financial resources as well as a passionate commitment of energy and time to do well in the rigorous academics of an MBA program. However, assessing the long-term benefits, such as growing into more impactful roles within your current sector or pivoting into a new industry altogether for higher earnings potential, immediately justify the decision of pursuing an MBA.
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Expected Return on Investment (ROI)
The ROI of an MBA is not just quantifiable in salary increments or job titles, it also encompasses the expansion of one’s professional network, exposure to diverse business practices, and the refinement of strategic thinking and leadership skills – elements crucial for making a significant mark in any industry. If an MBA is plotted on one’s net earnings chart over time, it most likely signifies an inflection point where your net gains experience a considerable rise with a consistent-sustainable growth forecast in your relative future returns as well.
Reflecting on my boss’s initial question, who is also an MBA from a top-business school, my honest answer was: “I want to develop the ability and skills to think and solve problems like you”. Now, just months into the program at Fisher, I can see how the strategic-intuition and critical-thinking mindset are actually refined through an MBA program at a leading business school. I feel confident that this training is preparing me well to lead and impact the increasingly competitive and dynamic global business environment.
