Good things can emerge from recessions . Opportunities that would have normally been impossible to achieve during good times. One of those “good things” is exposing the MBA dealership. Yes, I said MBA dealership because in many respects this is what they’ve become. They bring in product, spruce it up a little bit, and then put it out on the lot for sale. And the top dealerships like Harvard, Wharton, MIT, Stanford and others are recognized as the top MBA dealerships in the US . This is based on salaries when their students obtained when students exit their lot. Obviously, the “Value Add” component is sought out by the by some of the brightest and most talented students on earth. During their period in residence, they receive instruction on statistics, process & procedures, and optimization, but not necessarily the artistic nature of business. They learn about finances, and how to make them go zoom, zoom, zoom. They learn about leadership, not necessarily how to effectively lead. They may learn about ethics, not necessarily what it means to be ethical (fyi, a mojority of MBA students admit to cheating while earning their degrees). And of course there is the club. That place where fraternal brothers and sisters meet in their post-MBA years, connecting them to the world.
Over the past decade or so, new MBA dealerships have been constructed, and existing dealerships upgraded. Dealership demand from incoming and outgoing students grew. The pump was primed and the machine well oiled, and the dealerships rose to the occassion. The dealership was bustling, students were challenged, and graduates compensated for their time and hard work. However, here is what I’m pondering. Has the MBA dealership been tainted by the recent financial collapse of world markets? Has demand for MBAs from the financial centers around the world declined? Has the perceived value of an MBA diminished? Are Business Schools to Blame? Are business schools the solution?\
Time will tell what the answer is to some of these questions. However, early indications aren’t good (see BusinessWeek report). I’m positive a huge wakeup call has been issued to the MBA dealerships and their students. What do you think?
