Why is my colleague getting an MBA?

Looking for some input here. My colleague is a 27-year-old girl who is a credit officer at a medium size regional commercial bank ($10 billion in assets, 300 employees, give or take)--been there for only about 3 or 4 years (I think she spent a year or so at some crappy commercial bank in NYC since she refuses to say where it was, which leads me to believe she's embarrassed by it). Actually, she's quite precocious as her job has a ton of influence inside the bank, she's got 3 or 4 of her own employees, a large office, and she has a vote on loan committee, which is probably the single most important group at the bank, and she's probably making $100k per year in the Mid-Atlantic (i.e. high but not obscene cost of living). My office is right next to hers and I know she works probably 35-38 hours per week and she basically has no boss looking over her shoulder (he's offsite). She said she wants to stay in the business and she straight up had a very senior guy walk into her office and tell her that his MBA was pretty much worthless in this business.

Nevertheless, she's plowing forward, looking at places like Harvard, Georgetown, etc. I'm trying to figure out why someone would take 2 years off to get an MBA that won't help her progress in the field she wants to stay in when she's already doing very well. Is there that much cultural pressure nowadays to get an MBA that people are not even considering it rationally? For what it's worth she did get a 720 GMAT.

It just seems to me that she's going to give up $200,000 in salary and spend $100,000 on an MBA for reasons I don't understand. Add in the fact that she'll probably be a senior credit officer with a dozen employees by the time she's 30 with a $140,000 salary (again, this isn't NYC, so it's good money) if she just stays put and it just seems baffling to me.

Am I off base? Is her move rational? I'm starting an MSF program next September, but I'm working full time and our company is paying for it.

 

My view is that a FT MBA makes a lot of sense if you want to make a long-term career or IBD or Consulting.

My hunch is that she wants to move over to IBD but she is saying she wants to stay in the business to keep her options open and to get along with her colleagues in her final months there. Her first year comp as an IBD associate in NYC would be about $180K and eventually move to ~$300K. However she will also be working 80 hours/week.

Or she could be pulling a Brady4MVP.

 

Most of the executives I've spoken with have agreed that the MBA itself didn't help them in the sense of training them to lead-but it was extremely useful in helping them transition careers or industries at the drop of a hat, even AFTER their first post-MBA jobs. A top MBA buys you a ton of control and latitude over your career prospects, assuming you already have what it wakes to be successful. It's less so these days, though, as the Executives I've seen all came up during the boom years-but they all agree that on the back end of their careers it's been a difference maker-corporations like the pedigree, it's a useful "tiebreaker", and it better enables you to transition industries later in your career as well to other leadership posts. Perhaps your friend is thinking about the longterm despite her comfortable situation?

 

Some reasons I see:

  1. Most likely - she doesn't like her job. Even if it's 35-40 hours a week for $100k salary, if you hate the work... does it make sense to stay?
  2. Maybe $ is her motivation. Making $100k now and making $140k in a couple of years (especially on 35 hours a week) sounds good to a lot of people, but perhaps she wants to make double that, even if she's giving up so much in her lifestyle.
  3. It could be a cultural thing. Some cultures tend to put a ton of value in graduate degrees... her parents / family, friends and her own value could be based off that.
 
Best Response

Given all the applicants I've seen over the years, don't underestimate the power of boredom and restlessness to motivate people to do something to change their situation - especially those who have a big enough ego (in a good way) to believe that they can do better, and/or have the ambition or drive to want to do something more.

In other words, being in a comfortable position can cause an ambitious person to go ape shit.

So many people have this dream of retiring early, or "living the dream" (some version of having it all, having it made, etc) - but then only in hindsight you realize that sometimes it's the chase that makes you feel more alive than the catch.

I've worked with many folks especially those gunning for H/S/W who really don't need the MBA at all - they have the pedigree (if you went to Harvard undergrad you don't need "pedigree"), they have a great job, etc. but they apply anyways simply because they are somewhat bored or stir crazy.

Alex Chu www.mbaapply.com
 

This is a completely honest question and there isn't any sarcasm intended -- Why don't you just ask her?

Phrase it something like, "Hey, Sugar Tits, it sounds like we're in a similar situation as we're both applying to grad school. I was wondering if you'd be willing to share the thought process behind your decision- making? Maybe we can both even Each of us sharing our insights/experiences may even help us both come out ahead." and you probably won't even come off as an asshole or nosy, etc.

[quote=patternfinder]Of course, I would just buy in scales. [/quote] See my WSO Blog | my AMA
 

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