Consider the following facts :
1.The biggest and best business men do not have an MBA degree Rockfeller,,Sam Walton,Warren Buffet,Ingmar Kamprag(IKEA),Richard Branson and closer home Dhirubhai Ambani,GM Rao,Kishore Biyani …..the list is just endless.The point is that while you may find a lot of mediocre managers and small business men having a degree in Business Management most of the big guys would not have bothered to spend time on such a wasteful academic pursuit.
We did a small test in the office too while most could recollect names of business men who were not MBA’s we had to really struggle to get a few names of those who were.We were also not sure whether they really did an MBA or they got an honorary degree.These names came up during the discussion.
2.Take the recent example of Indian railways.I am sure that the analysts from fancy consulting firms would have filled reports after reports weeping about what is wrong with this century old largest employer in the world.They would have wasted hours of power points suggesting every damn trick in the book quoting from all possible gurus and case studies.But what was the result ? Zero as usual.
Enter Mr Lalu Prasad Yadav and the railways is turned around in 4 qtrs ( as the management guys would say).Nothing great just plain common sense and a will to act.Now the same institutes are falling over each other to learn management from the Bihari whom they mocked at every opportunity.How rediculous ?They are not even ashamed of the fact that it is slap on their face.
3.Till last year the most coveted job on the campus were the i banks till the greedy pigs of wall street brought the whole world’s economy on the verge of collapse parking their bums on Ferrari’s in the process.What they could have figured out was that their own brethren will be out of jobs and it will make the investment(the word feels laughable)banks extinct from campuses for a long time to come.
4.As per a survey conducted in the US quoted in one of the popular GMAT preparation guides 70 out of the 100 top MNC’s in the US do not have MBA’s as their CEO’s,only 10 of them from ivy league.Does it ring a bell?May be you are better qualified for the Chief executive’s position if you are immune to the MBA virus.
5.Obama’s Election campaign is being touted as the most successful marketing event in the history of mankind generating $650 million against a plan of $ 150 million.Not only the Americans but the entire world got swept by the sales pitch conjoured by the Lawyer turned politician.Once again the marketing Gurus are asking their pupils to learn from Mr. Obama – How to sell a dream ?
There are a hundred and one ways that I can demonstrate the futility of this uncalled for piece de education but the best quote I have is one Mr.Kishore Biyani.He says” Business is simple,people make it look complex to retain their jobs”.It pretty much sums up the mood of my argument.
Sam Walton ,the Sultan of common sense as people remember him was never convinced about having MBA’s work for Wal Mart.He believed that they cost much and do little.And therefore Wal Mart never really hired MBA’s untill his death in 1991.In fact almost all the top management till date comprises people who have learnt the business by doing it the Wal Mart way, as they proudly call it.
So What’s the Bottom line ? (sorry for the cliche but I can’t put the MBA in me to sleep)
Any education is as good as the one who receives it.It is true for the management degree too.There is no magic mantra that they can teach and the degree at best helps build an orientation towards thinking in terms of money. The hype is a big farce and nothing justifies the huge pay packets that the fresh MBA’s demand by creating an artificial supply situation.The best management institutes are more of marketing successes than creators of thought leaders who can change the course of history as positioned by themselves.You can wear the degree when you come out of college as a trophy you won in the kindergarten sack race but the ultimate test will be the market place.Very shortly you will realize that the organizations are interested in knowing what you can do and not what you have done?There is no difference between not being able to sell and having lower inventory turns – that by which you cal a rose would smell as sweet by any other.
The last word on rankings in business magazines.This was beautifully put forward by a manager in corporate HR in one of the training sessions I attended( this MBA thing never dies you see).He asked us to consider this – people get interviewed by magazines,magazines rate institutes,people form opinions,magazines interview people and so the cycle goes on and on without anyone pausing to have a look at the actual value added by an institution to the society.
And why this post ? Well I am shaken up by the loot that some of the so called ‘world class’ institutes in India are indulging in by telling innocent young men and women that this ticket to heaven costs a fortune.Not true.The MBA too calls for the same cost benefit analysis that any business plan needs to consider.
Going by todays numbers the ROI on my degree would be 1000 % as I did my sarkari MBA from the University of Lucknow when life was simpler.