I graduated from one of the top 10 undergraduate business schools in the US with a 3.85/4.0 GPA, an honors degree with a double major and a minor, and an offer to work at one of the top 10 Fortune Global 500 companies. I thought I was a badass and was ready to conquer the world and take over the C-suite.
Little did I know.... there were some basics I needed to learn first...
Networking
Yes, you've heard it time and time again. Networking is key to success. Although I was part of the company's rotation program (meaning that someone managed my career for 3 years), I realized that it was important to network and build relationships early on. Not only did it help with securing future roles and great opportunities, but they were particularly helpful when it came down to learning the tips and tricks to survive in the corporate world.
Technical skills
Remember how the theory and formula for WACC was emphasized in your corporate finance class and how important it was to determine it in every case study you were given? Well, my finance peers, when you work in the corporate world, the company dictates the WACC you should use. What? You forgot the formula? No biggie. Just ask the Treasury department, and they will provide you the info - quicker than googling the formula and calculating it yourself. Basically, my point is - companies want you to do things their way. Usually, you just need to remember the theories from business school.
Workplace wardrobe
At my business school, the emphasis was on polished suits and tie for the men, and conservative blouses, skirts and pantyhose for the women. No need to shell out the hard earned cash for this unless you're an investment banker or hold some sort of external facing role because I've witnessed several pairs of thong sandals at my company. In fact, if you're seen wearing a suit, people will ask if you are interviewing. If you're a female sporting a fresh pair of pantyhose, you're viewed as uptight. I recommend business casual to be safe.
Finance is not "ALL THAT"
Finance was the most popular major in business school. You were reminded of that day in and day out. It was the major that would land you a lucrative career. When you're working in a non-finance industry, you quickly realize that you're not as important as you once were in business school. For example, if you're working in the O&G industry, engineers are the gods. If you're working in CPG, it's all about the marketers. You get the point. Basically, you need to learn to put your ego aside and get over yourself.
Advanced degrees
Based on what I have seen in my 8 year career, advanced degrees, such as an MBA, are not essential for those already with a business degree. They're helpful if you're trying to break into a new industry or a new company; however, they do not appear to be needed for internal advancement. It's definitely making me think twice given how expensive a MBA degree is.
These are the things I've witnessed thus far at my company. I'm sure the list differs depending on the company and industry. What do you all think? Any others worth mentioning?
Very good post. As someone who's worked in Big 4 Audit and then Corporate FP&A at a F15 company, I definitely agree, especially about advanced degrees. If you're already in the door at a F500 and know that's what you want to do career wise, a MBA is not necessary, especially if you already have a business degree. However, a professional certification like the CPA/CMA/CFA should help with advancing your career.
Also, I'd like to point out that a lot of people with MBAs in the corporate world are either a) career switchers - started out in Finance but want to do Marketing/Brand Management or b) Non-business undergrad (humanities, engineering, etc but wanted to work in Finance. There are also some people with undergrad business who do part time programs, but this is entirely your call - do you want to spend over 100K for a decent program just to re-learn undergrad business?
In Corporate FP&A, CPA holds more weight than a CFA. There are very few roles at F500 companies where a CFA is relevant - mostly Treasury (groups that invest on behalf of the company or just monitor holdings) or Investor Relations. Even if you pass the CFA exams, you cannot call yourself a charter holder unless you get 4 years of related work experience.
What do you want to do at a F500 company? If you have undergrad business and are already in a Finance role and that's what you want to do in the long term, MBA may not be worth it. The CFA will give you a resume boost even if it may not be directly applicable to your role. Whether you want to spend 300+ hours studying just to make your resume slightly more attractive, go for it. If you don't have a CPA and you're in FP&A, I'd go for that over the CFA.
If you're not in Corp Finance at a F500 or if you're in Corp Finance and want Marketing or Corp Strategy, go for the MBA. CFA won't help you.
Also, just want to point out that I have seen some cases where people moved internally from a FP&A role to Marketing or Corp Strategy, without a MBA. Networking is key and even progress towards a certification like CPA/CFA can add more credibility if you don't want to go for the MBA.
I'm in the same situation actually. I have my CPA and FP&A experience and am disgusted at the thought of paying $120K+ to go back for a part time MBA, especially since my undergrad was from a decent business school (UMich). I'm pursuing the CFA instead even though its not directly applicable to my role, but will look good if I aim for a Treasury or some finance heavy strategy role.
Good post. Couple more additions:
• Know the difference between searching for a 'role' and a 'company' - I used to identify what roles I wanted then look where I could work; I learned that your manager and the company culture make all the difference, so know I tell people to identify what companies you value, and then discover what roles you can target there. Roles change over time, but company culture often does not.
• Seriously, get technical - Finance and Technology (Computer Science) are rapidly converging. The amount of job posts that include requirements such as SQL/Programming/Math/Statistics is skyrocketing, and this isn't going to end. Knowing Excel moderately well isn't a differentiator anymore.
• Advanced degrees DO matter - Finance is super competitive, and to be honest, you probably feel this way because Master's degrees have become almost a commodity - everyone has one, wants one, or is pursuing one. Hence the value of the CFA or other certifications. Yes, experience matters the most in the end, but if you want to target Asset Management or Hedge Funds, you need to target feeder roles such as equity/quantitative research - and advanced degrees really do help.
• Back office is okay, but if you want to move to Front Office eventually, it'll most likely be entirely up to you - It's hard, and you'll need aforementioned advanced degrees, certifications, etc. Competition is fierce, but don't discount getting a foot in the door, working hard, networking like crazy, and achieving your goal. May just take longer than you thought.
• MBA can be a waste if you dont use it properly - Don't go back to school until you know what you want to do with your career. Too many people go get MBA's hoping it will help them figure it out and instead waste two years and several hundred thousand dollars. Know what you want to do, it will help you get more out of your MBA (and be damn sure you want to work in AM if you do CFA!)