When CEOs and heads of HR were asked what they thought of staff doing Masters of Business Administration (MBA) courses, they said: “It can take your best people out of the workforce just as they are becoming most productive. The dollar cost can be very high in salary and fees, and there is every chance that for the individual an MBA represents a chance to change career and move on sometime after completion.”
They also indicated that if they wanted to make a bigger impact on enterprise performance with scarce dollars, they would put groups of high potential employees through shorter programs focused on the management changes the whole enterprise cried out for.
But none ruled out seeking people with MBA skills, let alone esteeming people with the grit and intelligence to complete an MBA. All CEOs knew that discouraging high potentials from MBA programmes risks losing good people, and sends the very dangerous message to all staff that when it comes to business and management disciplines, conceptual rigour is not valued.
So, how can enterprises reconcile the financial and opportunity costs, and the risks of supporting individuals through MBA programs with the very evident demand for them and their real benefits? The answer is about enterprise value for money.
Invest in what’s right
Not all MBA programs are alike. They meet very different industry and career needs. So only invest when a program is right for your enterprise.
» Ensure the basics are covered – look for units in finance, economics, people, strategy, risk, contracts or business law.
» Specialties must be relevant to your enterprise. For example, as the finance sector has been the most avid recruiter of MBAs, go for units in finance disciplines. Others include specialist units in government or health or education, while Chifley focuses on management for engineering professionals with units on project management and innovation.
» Look for evidence of current industry experience in faculty. A good research record is a fine thing, but it cannot replace real world engagement.
» Delivery – part-time and distance options allow employees to work while they study, and these options add the advantage that learning can be brought back into the workplace in real time. Good distance programs allow employees to learn as they move locations within the enterprise. If you have doubt about the quality of the distance experience, ask to look over materials and the online experience.
Support goes a long way
Support the individual at the right time and in the right way.
» Motivation is vital here. You should probe carefully what your employee expects from learning formally about business and management. Surprisingly, graduates who initially thought an MBA would help them move up or out have learnt to become better at their job, which benefits the enterprise. A career development plan will help identify motivation and capacity to achieve, as well as ensure that the decision to support reflects your organisation’s goals.
» The form of support also counts. Very few enterprises nowadays give individuals a blank cheque. The smart enterprise is more likely to co-fund, perhaps by way of reimbursing progressively and partially for programmes passed (and helping) choose which programmes along the way. Part-time and especially distance courses make co-funding easier, because they offer step-by-step measurement of achievement, break-points (like graduate certificates) to allow the employee and the enterprise to focus on family or a work project for a period, and cost less.
Ultimately, the choices are in your hands. It is important to find the balance that will benefit both your employee and organisation.
+ Neil Edwards is Chief Executive of Chifley Business School in Australia