MBA vs. promotion@work

Question

Hi all,

I am interested in your thoughts and opinions as I will have to take the decision whether to pursue an MBA at an elite US b-school or commit to a high-profile project at work (which will most likely result in my promotion to an executive position).

Background:
I am a 30yr old engineer with approx. 5yrs of work experience in the IT services industry. I was admitted to one of the Top10 programs in the US (not H/S/W but still very elite) which even granted me some $. So far, so good – this sounds like a no-brainer, especially since my employer decided to offer me a partial tuition sponsorship if I will stay for another 24months after graduation.

But things have changed as my boss offered me a new role, which is actually very hard to deny:
The company is about to kick off a new, high-profile project and they want me to be one of the project managers – this equals more responsibilities, more direct reports, and a highly likely (~90%) promotion to an executive position next year. In other words, about $110k/year base salary while maintaining a very decent work/life balance (45-50hrs/week), proximity to my girl and family and a huge leap forward in my career.

Bottom line:
 
 Option A) Pursue a sponsored MBA at a Top10 school in the US and return to my old job afterwards with $40-50k of debt and a significantly smaller (~20%) chance to be promoted to an executive position within the following 24 months 
 Option B) Deny the MBA in favor of a highly likely fast-track promotion to an executive position with no debt and a good life/work balance at a company I like to work for 
 Option C) Pursue the MBA without the company sponsorship and look for a new job afterwards, but deal with approx. $90k of debt (plus I definitely like my current employer)

What are your thoughts? What's your stance?
Every opinion is appreciated!

Thanks!
Cheers,
Johannes

motion · Answer

Have you considered switching to an exec or part time MBA program? Seems like that would let you keep the employer tuition support, plus your salary, avoid debt, take on the exciting new project, advance in your company, and still get the MBA knowledge and credential.

Posted from my mobile device

Posted from my mobile device

tortoiserun · Answer

What are you looking to get out of an MBA program? Based on the information in your post, it sounds like taking this promotion and forgoing the MBA is your best option, personally and professionally. If you can get an executive position at a company you're happy with, it doesn't seem to get much better than that. But if you have future plans beyond this company that you'd need an MBA for (even with executive experience), then maybe it does make sense for you. In that case, while it might be tough to turn down a top 10 offer, I agree with motion - an executive or part-time program may be the way to go.

ke18sb · Answer

It sounds like you have been offered the type of position people go to bschool to receive. Based on the information you have provided, I'd be in favor of Option A. As long as you are happy at your firm, enjoy your job and life style it is kinda a no brainer. As stated above, you can always get an executive MBA in the future. Depending on where you are located there might even be top programs that you can tap into for night/weekend classes.

MBA makes sense for career changers / people the need the degree to move ahead. Looks like you don't follow into either category. Take the job and the money and leave 2 years of opportunity cost and 50k in debt in the dust.

MBA makes sense for career changers / people the need the degree to move ahead. Looks like you don't follow into either category. Take the job and the money and leave 2 years of opportunity cost and 50k in debt in the dust.

kingfalcon · Answer

My suggestion would be to pursue a few top-5 schools and, if you get in, pursue option A. Otherwise, since it sounds like you really enjoy what you do, you should go with option C, pocket the promotion, and consider getting an Executive MBA a few years down the line.

randompasserby · Answer

A couple of things to consider:

1) Are you truly happy with your current career path? Would you be happy to pursure a career in your current industry? Promotions are fantastic, but at the end of the day if you don't enjoy what you're doing, they aren't everything.
2) Is the project a 'done deal' or is there a chance it may collapse after a month or two / never get off the ground? 
3) Is the 90% promotion probability based on your own observations of others, or is it something your boss has told you? If it's the latter, I suggest you take it with an *extreme* pinch of salt. Some people will say anything to try and retain people.
4) 45-50 hour weeks at executive level? I find that _very_ hard to believe.

If you're comfortable that everything you're being promised will actually happen, and are happy with the work, then I'd suggest going for it. However contrary to the advice given by others, I really wouldn't recommend a part time MBA - I have seen people try to do it and they just run themselves into the ground trying to maintain a work/study/life balance.

Av · Answer

I know it's rare, but I know two executives that do exactly that. They also take 3-5 weeks of vacation each year. The opportunities are out there, but there's usually a substantial trade-off (location, prestige, pay, etc.).

To Johannes:
Part-time MBA programs are designed for people like you. Based on the information you've provided, I'd take the promotion and pursue a part-time MBA whenever it makes sense for you. You might even get your employer to sponsor the part-time MBA 100%.

xerox · Answer

Help me here, I am confused! Why would an employer sponsor you to go to the US, and then would not give you an opportunity to progress to an executive position?

During your MBA, you will definitely discover that there are so many other opportunities out there, and the pay is so much better than $110K/year (if that is what bothers you). It is definitely not about money alone as I have seen people who quite $300K/year banking jobs in order to do a full-time MBA program, and so far, I have to yet meet a person who was disappointed as there are tangible opportunities to do much better financially, and have a different toolset for better life in general.

Take a chance, put effort into your MBA experience, and you will discover a new world. Just my $0.02.

joeschnitzel · Answer

Thank you guys so much! Your opinions are super helpful input for my decision process... it is really, really hard to throw away all the work, effort, and money spent during a successful application process and eventually discard the plan to pursue a degree at one of the world's premier b-schools. Nevertheless, I am actually now leaning towards an EMBA in order to pocket the promotion. (Even though I am still skeptical, as one of my friends did an EMBA a year ago and he had absolutely NO life during this time) Some comments on your really great feedback: It is true and it can be accomplished - at least in my company

I admit, it depends on the time you count towards work - the 45-50hrs do not neither include travel time, lunch time (do you consider lunch with coworkers work?) nor occasional long hours prior to important meetings. Additionally, I do not consider time spent on some emails in the evening "work" as long as I can spend this time with my family. It's definitely good to be at home at 7 or 8 and still have some time with my beloved ones even if I have to answer some mails or have to dial into a conference call for an hour. This is actually not what I meant - getting the MBA now means a longer period of time without significant career progress. You have to consider the fact that an MBA student will be away from the company for almost 2 years - a lot of time in today's economy. In other words: once I will come back, I will have to catch up with what will haved changed (new faces, others will have left etc), reactivate my networks, find new projects and opportunities within the company. All this consumes a lot of time and I am quite sure that I will only have a very small chance to get promoted within 24months after graduation. Maybe it is a continental Europe thing, but an MBA degree per se is not considered a value in itself - you will not be promoted for just getting a piece of paper from university. You will have to prove yourself and show that you are capable of utilizing the new know-how - which means getting challenging roles on important, highly visible projects. Well, I guess my pay is quite ok considering my age and my position - it is more the debt and opportunity cost that bothers me when comparing the options. 50k debt + 200k foregone salary is quite significant for someone who's planning to buy a house to raise the kids in the next 5-10 years. But still, I have worked so long and hard to get admitted and want the MBA so bad that it is still a super hard decision to throw away the admission offer and scholarship at my favorite school. Once again - thanks a lot for your feedback! Cheers, Johannes

powerka · Answer

Hi joeschnitzel,

In case it helps, here go my five cents...

1) Full time MBA = best time of my life (and I had the full long life of a globetrotter)
2) Opens so many doors, worldwide
3) BUT does not open doors in senior positions after graduation
4) Makes it easy to switch careers
5) Best paying jobs are in finance

I switched career at 32 from industry to finance.

PM me if you think I can help.

Cheers,

MBA vs. promotion@work

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