What price for a successful career?

By Shola Adenekan

Experienced managers often benefit most from MBAs

Business schools are reporting an increase in the numbers of people willing to pay up to £64,000 for a Master of Business Administration (MBA) qualification - despite a gloomy job market and a slowdown in the financial sector.

The Association of MBAs (Amba) says more students are enrolling than four years ago, at the peak of dotcom boom.

Imperial College Management School reports a 25% rise this year, while Henley Management College has seen demand increase by 30%.

But is all this expense - and, in most cases, debt - worthwhile?

'Look ahead'

"In an economic slowdown, applicants need an edge over their competitors," said Professor Richard Painter, the dean of the business school at Staffordshire University.

"So the slowdown in a sense increases the importance of a significant postgraduate qualification in business."

Tim Jenkinson, an MBA director at Oxford University's Said Business School, agreed.

"MBA students have to think ahead to what the economy will look like when they graduate.

"In fact, applications to MBA courses tend to go up in recessions, as the opportunity cost of taking the course is often lower."

'Benefits compensate for cost'

As the MBA is perhaps the most expensive postgraduate programme in the country, even at the cheapest business schools, what factors should potential students consider?

Accreditation and league tables are among the most popular means of deciding.

Senthil Kumar, 28, a customer relationship manager from India, picked London Business School because it is the highest-ranked in the UK.

"MBA education is an investment for a career spanning more than 30 years," he said.

"I believe it is important to secure an education that is of the highest quality in a world-class school. The benefits of such an education would easily compensate for the cost."

Amba currently accredits 39 of the 118 UK schools and these schools account for around 58% of the total MBA student population.

Will an expensive course point your career in the right direction?

Peter Calladine, the education services manager for Amba, believes having accredited status offers advantages for business schools and students.

"The most important thing is that intending students know that an outside body has carefully examined the MBA programme and pronounced it as passing its quality standards."

However, Professor Painter dismissed Amba accreditation as an elitist marketing tool.

"Accreditation requires the satisfying of certain criteria and the ticking of certain boxes," he said.

"This is elitist in the sense that it excludes institutions that do not wish to conform to these norms and practices.

"So, non-accreditation does not mean that other MBAs are not equally or even better able to satisfy student ambitions."

'Work skills most important'

Tim Hird, a business development manager for Robert Half Management Resources - a recruitment agency for MBA graduates - also believes accreditation is of less significant to potential employers.

"When we look to recruit MBAs, the individual softer skills - ability to work under pressure, communicate and influence - are far more important than which business school they attended."

An MBA qualification might seem a ticket to a high-flying career but potential students need to be sure it is the right choice for them.

For example, MBA programmes are not targeted at new graduates but at people with over two years' managerial experience.

Career advisers believe that to capitalise on an MBA you need to have experienced some of the tensions, dilemmas and paradoxes that managers have to deal with at first hand.

'Sacrifice'

"The MBA is a vocational degree aimed at furthering someone's career, not kick-starting one," Mr Calladine said.

"The MBA student should be in his late 20s or, more often, mid-to-late 30s and have already made significant career progress. If they haven't, they should not be thinking of doing an MBA."

"Employers want to see proof of success and ability in the real world, combined with the acquisition of generalist skills that the MBA provides."

Ken Russell, MBA director at Bristol Business School, said potential students need to decide if this is the right time in their career and personal life to start an MBA.

"For example, can I capitalise on the new found learning? Will my partner support me? Can I find the necessary time to devote to study for the MBA? What I'm I prepared to sacrifice short-time and how will this affect my work-life balance?"

"Start all these processes early so that you are not rushing any decisions and you have time to get prepared both mentally and physically for the MBA."