Novice Question: What is The Point of an MBA if You've Already Made it to a BB, MBB or MF?

I've seen a lot of questions on this website where people from target schools will make it into top notch consulting firms, banks or PE shops and ask about their pipeline into top MBA programs. I'm just curious what the purpose of getting an MBA would be when you've already made it onto the professional fast track? Especially if you make it into a BB where the PE/HF placement is already superior. Wouldn't your prospects be better if you just worked and got paid and promoted for two more years instead of taking out a bunch of money to go and get an MBA just to re-enter the work force at the same level you would have been at if you didn't leave to get an MBA anyway?

I can understand if you went to an average undergrad school and got a job at a third-rate firm with lesser exit-ops, them maybe you figure the MBA will help you shift a gear or two up, but otherwise it doesn't make a whole lot of sense to me.

 
Best Response

A few quick answers that popped into mind based on my experiences during b-school:

1) Having a break - After a few years of having an intense schedule (BB hours, consulting traveling lifestyle, etc.), some people just want a break. B-school gives you a chance to "recharge your batteries" without any massive detour to your career plans.

2) Exploring - Kind of similar to #1. After a few years of a fast-track but intense career, some can't help but ponder whether this is what they really want in their life. After all, the constant crazy 80+ hour work weeks that banking and megafund PE require can leave some pretty disillusioned and jaded. B-school allows you to see what else is out there while having the option value to go back if you decide that's what you really want.

3) Network - This is perhaps the most important and overlooked reason. It's been understood and widely stated on these forums that MBA is all about networking, however few seem to grasp how this works. If you are on "coveted" career path like banking, PE, or MBB.....when you get senior enough, it becomes more about relationships than technical skills or execution.

For instance, in MBB you have to start selling projects to F500 CEOs. How do you go about doing so? It's the MBB partners who have good working relationships with said CEOs that get the business. And where do they know these CEOs from? If you went to a top-tier MBA, chances are these guys were your classmates or alumni. In short, the current MBA classmates you have become your future clients, investors, portfolio company founders/CEOs, etc.

 

I 100% second this, and you (OP rather) also need to realize an MBA is oftentimes required to make a title leap (e.g. associate to VP at most big PE shops). It opens a lot of doors and simultaneously gives you the opportunity to catch your breath while you consider your next steps in your career. You can only advance so far at certain firms without one.

 

For the hardcore successful mid-level bankers in Asia: - Most people don't need a MBA or want a MBA. - I had seen a lot of upcoming senior people who never went for a MBA.

Their rationals for not wanting to have a MBA: - 2 years out of the game and not getting paid at that time - Do not see the value of a MBA platform - Their current employer has extensive network for them to get deals done

They usually expand their network (without getting a MBA) by: - Sitting on advisory committee for a prominent investment fund - Take an independent director post at a public company with good networking platform - Co-investing in a company with other network of investors

 

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