MBAs have always been considered sure-fire investments, much like owning a house.  But, now that the United States economy is shifting in a direction it hasn’t seen in a while, the actual worth of an MBA these days is up for debate. If you research the worth of an MBA, you will find that the lines are divided, particularly when it comes to one of the latest buzzwords in the field—ROI.

ROI, or “Return on Investment,” is usually related to gauging the worth of products or services in the business world. But ROI is being applied to MBAs more and more these days, which can make the decision about enrolling in an MBA program exponentially difficult.

Graduate students pursue MBA degrees for a variety of different reasons.

• Most MBA students enroll at least partially in hopes of advancing in their professional life and, consequently, making more money.
• Some students earn an MBA at the behest of the company for which they work,
• Few others enroll in an MBA graduate school in order to start up their own businesses.

These are all valid reasons for pursuing an MBA, and if you’re someone who has his or her sights set on that corner office with the fantastic view, then an MBA is mandatory.

The Graduate Management Admission Council (GMAC) has released its survey, which indicates that MBA degrees continue to lead their holders to increased salaries and that most students express satisfaction with the MBA programs they choose. When it came to being satisfied with the quality of the MBA program they chose, three-fifths of the students surveyed gave the value of their degrees such adjectives as “outstanding” and “excellent.” Full-time MBA students reported that they expected to increase their salary by 54 percent, while part-time students expected a 43 percent salary increase. Executive program students expected to increase their salary by 33 percent after graduation.  And over the course of a career, that’s some pretty astounding ROI, with returns way over the initial cost of investment.

However, many of the benefits of an MBA degree may not be reflected in a huge salary or prestigious job position. There are many less tangible gains to be had as a degree holder when you take into consideration the importance of having the ability to “speak business speak” and thrive in the business culture. Apart from social and business networks, you can also gain adept group communication skills from the MBA experience. At most business schools, the case method and class participation make up an important part of the curriculum. In a business school setting, you learn when to interact, when to keep silent and listen to others, when to be serious, and when to use humor to break the ice. This same group power dynamic exists in many business situations, from board meetings to team projects. Mastering the art of communicating in a group setting is one of the things that distinguish successful people from the rest, and it is learned very powerfully in a B-school.

BOTTOM LINE

To quote the old adage, “Beauty is in the eye of the beholder,” and so is the worthiness of an MBA.

One should examine the pros and cons of attending an MBA program against his/her long-term goals and the relevance of the MBA in achieving those goals. Often, many lose sight of the real intent of higher education – racing more towards the finish line (and the purported dollar signs) and forget to maximize the experience right in front of them. It is an opportunity to grow professionally and personally. You will likely be tested in ways you never imagined undergoing a tough MBA program. The MBA is worth it if you know what you can gain out of it. It is not an automatic passport to success; it won’t bring you instant fame and fortune. For that, you have to use the grey matter in between your ears. You’ll just have some MBA leverage to help you along, that’s all.

- PAVNEET TANDON

An English (Hon) from the prestigious JMC (DU), Pavneet is an expert English trainer for the CAT and the GMAT and mentors students at MBAGuru, INDIA’s Fastest Growing CAT Coaching Institute across its Delhi centres. Her adaptive style of teaching cuts across backgrounds and learning stages of students and helps them transition to their respective next levels.