Benefits and Challenges of MBA Programs

Six years post-Stanford: MBA theories vs unruly reality of the startup world! Six years ago, I walked out of Stanford University Graduate School of Business with an MBA in hand, fueled by ambition and ready to conquer the business world. Today, having launched two businesses, including my last venture and my current startup, Fibr, it's been a wild ride of highs, lows, and invaluable lessons. Here's a glimpse into how the journey has been for me- 6 years, 6 lessons! 1. From Theory to Reality MBA equips you with frameworks, case studies, and polished presentations but in reality everyday feels like a case study in itself - from operational challenges of chasing trucks, customers shouting, and solving them not with time but instantly. 2. The Myth of Overnight Success Starting not one but two businesses taught me that there's no overnight success. Selling my business was not a 1 meeting classroom negotiation, but 3 months of negotiation, due-diligence and regulatory challenges. 3. People Power Networking is a buzzword in MBA circles, but in the startup realm, it's about genuine connections. Building a team, securing partnerships, and understanding your customers require more than just exchanging business cards. MBA teaches you favor trading, but relationships are doing favors without expectations. 4. Financial Fluency Beyond the Spreadsheet Cash flow challenges, fundraising struggles, and budget balancing became daily realities no textbook could fully prepare me for. Although MBA taught it is important to know all these, reality on reporting to govt agencies, stakeholders, investors etc kicks in the real importance of financial acumen. 5. Adaptability is the Name of the Game In the business school bubble, change was a case study. In startups, it's a constant companion. Being agile, embracing change, and learning from failures became as important as any strategic model. 6. The True ROI: Personal Growth Stanford taught me the fundamentals, but the startup journey sculpted resilience and humility. Learning skills like hiring, firing,  deciding bonus, and more are real emotional rollercoasters  and are way beyond just some classroom roleplays. So, if I were to summarize these six years post-Stanford, it's about connecting the dots between MBA education and the real startup world. The classroom laid the foundation, but the startup journey carved the masterpiece. Here's to the next chapter, more lessons, and the unpredictable adventure that is entrepreneurship! #startupjourney #MBArealities #stanforduniversity #MBA #foundersday #startuplife

This week LinkedIn unveiled its list of LinkedIn Top 50 MBA Programs of 2023 to grow your career, sparking the age-old debate about the value of that coveted MBA degree. 🚀 Is an MBA worth it for your career growth? Here's my take! 🎓 An MBA's worth is determined by two crucial factors: 1️⃣ What you put into it 2️⃣ What you expect to get out of it In my case, pursuing an MBA at USC Marshall School of Business was a career accelerant and worth the money and time I invested: 🔀 Career Pivot: I expanded my horizons without completely changing course, giving me the perfect balance of depth and breadth in my career. I landed an incredible M&A internship with Deloitte that turned into a full-time job that fundamentally changed the trajectory of my career. 🧠 Curiosity Boost: It's not just about coursework! Case competitions, guest speakers, and countless informational interviews honed my curiosity muscle. 🌍 Global Awareness: Interacting with diverse, international peers and USC's PRIME program (and my first trip to China) introduced me to a broader world perspective. 🏆 Leadership Skills: Extracurricular activities like Challenge4Charity and Graduate Women in Business helped sharpen my leadership abilities. 🔍 Passion Discovery: I found my true calling in corporate strategy, leadership, and culture—huge shoutout to Warren Bennis, Kyle Mayer, and Arvind Bhambri! 🤝 Lifelong Connections: I met lifelong friends who've been my trusted advisors and cheerleaders over the past 20 years (I'm looking at you Shannon Hetrick Elisa Koppl David Bishop Sarah Rezak and so many more). So, to answer the big question—YES, my MBA was one of the most impactful investments I've made in my career. It wasn't just about titles and compensation; it was about personal growth, global perspective, and lasting connections. 🌐 But it's not the right answer for everyone. Remember, the value of an MBA isn't just in the degree itself, but in the journey, the experiences, and the transformation it brings. 🌟💼 #MBA #CareerGrowth #PersonalDevelopment #USCMarshall #Leadership #Networking #GlobalPerspective

Is an MBA worth the time and money? It’s a question that’s often asked but hard to answer. Attending an elite program highly correlates with elite career outcomes, but those students would almost certainly have had exceptional outcomes no matter how they spent those years. What really matters? Given that the average cost of an MBA in the US is $225,605, let’s start by understanding why students choose to attend. That cost is a huge factor for the majority of prospective MBA students, but with nearly all surveyed recruiters claiming that the demand for MBAs will hold or increase, an MBA might feel like a requirement. (BTW - I interpret that recruiter statistic largely as, “I plan to look for a prestigious MBA on their resume so I don’t have to dig deeper.”) Is it worth it? 85% of MBA graduates between 2010 and 2021 think so. What did they get for the money and opportunity cost? The most common responses are “increased employability” “greater earning power” “broader professional network” So…actually learning something doesn’t factor into the choice to attend school. I realize that PhD and MBA students are very different people, but it is striking to me that none of the cited motivations reflect any intrinsic value to an MBA. While surely there must be some who see value in MBA scholarship, this disconnect between motivations—doing one thing because you actually want to do another—might be a source of bad outcomes for many MBA graduates. Self-reported career outcomes suggest value: the majority of graduates report advancing “one job level” post MBA, particularly those in lower-level positions. But self-reported returns for “Black, Hispanic and Native American graduates” were significantly lower than for other groups. And of course, there’s always that question: would their career have advanced as much in 2 years without the MBA? If we look at the schools granting “vast majority” of MBAs—”for-profit, online, and regional universities”—the answer is a clear no. Graduates from these schools received job offers at the same rate as applicants without MBAs, “even for positions that listed a preference for a master's degree”. And this effect was even worse for Black men; they received “30% fewer positive responses than otherwise equivalent applicants”. Way back in 2014, I developed an analysis technique to rank global universities on how a degree from them predicts career outcomes by the holder. I was genuinely shocked to find that the bottom two-thirds of universities on our list were negative predictors of career outcomes for its graduates. The students would have been better off never earning a degree at all. And while the quality of these “schools” is obviously part of the problem, the motivations of the students clearly plays a role. Treating MBAs, or any degree, as a magic ticket to wealth without any intrinsic value guarantees a market for false dreams and snake oil.