One could make the same arguments about almost any kind of formalized education. Why go to college when you can just study the reading list and participate with people online?

I did not attend business school, but the biggest advantage I see is that you are forced to work with other people in a variety of situations. In an online course, there are no face-to-face meetings, no collaborations on reports, no presentations to other students and professors, and no personal social interactions. The skills learned in these situations are very important to entrepreneurship.

Reading lists and "book" knowledge are very important and somewhat undervalued in our society. However, they are only complementary to experience and social skills. In business, it doesn't matter how knowledgeable you are if you cannot communicate your ideas and execute your vision.

In your post, you mention the idea of an exit exam. What sort of standardized metrics would you devise on an exit exam to measure social interaction or innovation? It's actually the biggest problem I see with many technical certifications, and why some technical certifications require a graded lab component.

If you're doing the MBA solely for education then the pmba is good enough.

Biggest thing I got out of the MBA was the network. VPs at GE, Glaxo, VCs, Private Equity folks, Investment bankers, tech folks and others all at my reach. I got to see how they think first hand and make connections that will be helpful if/when I ever do the start up thing.

There's also the esteem that comes with having the brand on your cv.

If you're not getting a superior network out of the MBA or the esteem on the CV then it's overrated. But a simple ROI calculation on my MBA over the next 3 years shows it really was worth it.

I suspect the PMBA's biggest downside is the fact that you're doing it "on your own". As Scott points out, a substantial part of the MBA (or any decent graduate level educational experience) is being able to work with others, ideally face-to-face: being able to sit down with someone to discuss and explore the new things you are learning takes the textbook knowledge in puts it in a much more significant perspective.

-mpg

Sam: I actually don't like standardized exams for a variety of reasons, and I'm not even sure it's in the best interest of everyone involved to have a standardized exit exam. But it is an interesting idea (e.g. how do you create a SAT type exam that overcomes most of the shortcomings of the SATs? etc.) Even if an exit exam is flawed, it doesn't mean there isn't a business opportunity for someone to create one.

The main problem with all exams is that multiple choice is the cheapest way to administer a test, but can only mostly capture people's rote knowledge: not skill or talent. And that's the rub. I'm sure you and I could devise a "test" that better captured someones business thinking ability, but finding a way to administer it cheaply (or for a profit) around the country would be much harder.

> One could make the same arguments about almost any
> kind of formalized education. Why go to college when
> you can just study the reading list and participate with
> people online?

Sure - but at least here we're talking about graduate degrees. The undergraduate question is easier to answer I think.

Another interesting set of thoughts on this issue:

Seth Godin on Higher Education

NYTimes: Was that Harvard MBA worth it

Slacker Manager on MBAs

Queens MBA offers a scenario by scenario breakdown (applies decision theory to the decision - nice)

I think that right now the MBA is worth it. Why, because your earning power is increased with the degree. You can argue if they system works or if it doesn't but the fact is that there is value that comes with the degree. Can you acquire the same knowledge without actually enrolling in courses? Of course you can. You can put yourself through an MIT course if you want to but you don't have the access to the faculty and staff. One thing you get from a formalized MBA program is that you have the chance to ask questions you get feedback on your ideas. You have the chance to go back, if you have built those relationships, and get feedback on real business problems as well. Like anything else it is an investment. Some people invest on their own and do fine, others use a broker or CFP. I think this is the same thing. Sometimes it's nice to have a coach. And as long as businesses place a premium on the degree it's worth the investment.

I am looking through the list of books in the recommended reading section and I can only think of one thing.

Even if a PMBA is not the same as full-costly MBA there is one good thing about this list: Filtering and guidance.

There are hundreds of books out there in every possible area you can imagine, even in a era where people read less and less, the amount of books that get published increase every year, it is now easier than ever to get your book published. And that poses a question: What should I read?

This list is a great source for guidance on what to read for a specific topic. It sure is not the definitive and ultimate list of books but they can give you a notion on what you should be looking for in each area.

If you have an MBA there is no possible way you can get hurt by reading any or all of the books from that list. The worst that could happen is that you do not agree with the author of one book and decide not to finish it after a couple of chapters, but still you will have a very nice doorstop or coaster, which is always good.

And if you do not have an MBA but are thinking about it; there is no possible way you can get hurt by reading any or all of the books from the list. At the end the question should not be if an MBA is worth it. The question should be are the ones taking an MBA worth it?

If you want the diploma and the recognition for a 2-year endeavor then go ahead and enroll in any of the hundreds of programs available. If you want the connections there is no excuse, an MBA is not the only way to get connections, and I mean top-management connections, go out and show yourself, enroll in communities and develop a reputation. Yes, an MBA is a great way to get connections, but I don't think 25K a year should be the price if that is your goal.

At the end, an MBA is not a bad thing, just make sure you take it for the right reasons.

As for the PMBA, one of the more satisfying things you can get in life is the feeling of knowledge, and books are a great source. Yep, books are not the end of it, but they sure are a good start. Get the knowledge, apply it, learn the lesson and pass it on.

Books are great, whether you read them for an MBA or not, so go get a book, read it and learn more about my BookEx project at regionativo.com

JP
regionativo.com

not much. Graduated with a MBA last fall, still haven't find a job yet. I'm stuck paying off my loan.

What did I get out of my MBA?

At first I thought it was the knowledge; - but what I realized after some time was that I thought differently afterwards. I see situations and analyse them differently (and more effectively).

I can think and work strategically, tactically as appropriate. My thinking is structured, and tends top down.

I tend to find it is quite different to others - and the biggest single difference before and afterwards.

While I was pursuing my MBA at a top tier business school, my husband (who had left his secure job to accompany me cross country) opened a small business to support us. We often ask each other who got the better MBA!

I am currently enrolled in an MBA program. My main reason is networking. Additionally, my employer is helping with a portion of the cost.

Someone mentioned previously that they found that the networking portion of the MBA is the most important part. My program is centered around the networking aspect. Almost all coursework is group related and there are many options to work with business leaders in the community. The professors have also opened themselves up to mentoring students with an entrepreneurial, accounting, or international business focus.

I selected the school because they focused on the connections you make with students, professors, and community leaders. It seems that this is the direction that many MBA programs are headed.

I also realize that having an MBA degree isn't the value I once perceived it to be. I would not, however, trade my experience of studying alongside some of the best and brightest in my community.

I think question "Is it worth it to get an MBA?" is not a complete.

The question, which will vary from person to person is "Is it worth it to get an MBA versus doing X?".

Such as "Is it worth it to get an MBA versus getting as Software Engineering Degree" or "Is it worth it to get an MBA versus enrolling in an internship" or even "Is it worth it to get an MBA versus joining the Peace Corp"

We all have limited time\money so it really depends what your goals are and the alternatives out there for reaching them.

btw: Interesting comment thread on this topic over on Business Pundit.

The answer to your question will certainly be different depending who you ask, but for me it's an enthusiastic "absolutely."

* Network. It's a chance to swim in a different pool and expand your professional network. Alumni networks are valuable and accessible sources of jobs, talent, and in some cases investment money. A lot of business school professors are also angel investors.

* Vocabulary. I heard an MBA referred to once as "wide and shallow" compared with a CFA ("deep and narrow"). You probably won't leave business school ready to run a company, but what you will be able to do is talk to the CFO or the head of marketing, or the operations manager in their language, which can make a huge difference.

* Practical Analytic Frameworks. A SWOT analysis is a bit of a cliche, but it's still a really useful set of questions to force yourself to answer when evaluating where you stand and where you're going. People *love* frameworks, and an MBA program is full of them.

* An Excuse to Ask for Attention. During my first semester (of a 21-month part-time program) we were required to talk to either our company CEO or CFO for a project. Asking intelligent questions about the way your company works and offering ideas for how to make things better is a really effective way to get on the radar of senior management. Your career will thank you.

Finally, of course, there's the financial question: Is it worth the investment financially? That same professor who forced us to knock on executive doors promised that before the program was over, many or most of us would get a raise or promotion worth at least half the total cost -- and he was right.

An MBA isn't right for everyone, and there's little you'll learn there that you couldn't learn through experience -- especially for an entrepreneur. Then again, even though there are plenty of courses around for teaching negotiation skills, I doubt I would have signed up for one if it hadn't been part of the MBA curriculum.

But it's a great way to boost your career in a short amount of time, and can provide the credential and credibility to make a change in course (from engineering into sales, or from operations into finance, for example).