Why get an MBA? The reasons for pursing an MBA are unique to each applicant. Our favorite way to think about pursing an MBA is through a framework proposed by Jim Collins in the book Good to Great. In Good to Great, Collins talks about the three circles in which great companies operate: Excellence, Economics, and Passion.

These three circles can also apply to individuals:

• Does getting an MBA allow you to pursue a career about which you are passionate?

• Does getting an MBA allow you to do something at which you can achieve excellence? Does it allow you to do something at which you are naturally talented?

• If you answered yes to the above two questions, does getting an MBA allow you to pursue a career that can financially support your lifestyle?

While pondering these questions, consider what an MBA can offer:

• Career options – An MBA can be used to change careers or advance in your current career. Some careers, such as management consulting and investment banking, typically require an MBA. If your goal is to advance in one of these careers, an MBA at a top school is likely a necessity. Also, an MBA can help those in non-business fields (such as engineering) make the move into management or into other business fields.

• Increased salary – The Graduate Management Admissions Council reports that the average MBA student makes $56,499 annually before attending an MBA program and makes $77,147 annually immediately after receiving an MBA.

• Business skills – MBA programs train students in major business disciplines such as finance, marketing, management, and operations. MBA programs also focus on "soft skills" such as leadership and values.

• Networking – Pursuing an MBA provides the opportunity for a student to network with faculty, alumni, and other students. These connections can be useful as you pursue a career after earning an MBA.

Also, consider some common criticisms of MBA programs:

• Real world experience – There is criticism, including from the dean of Yale’s business school, that the faculty at business schools lack real-world experience which leads to a lack of practical insights in the classroom.

• Valuing analysis over action – There is criticism of MBA programs that they teach students how to attack problems with lots of analysis, but they don’t help students decide what to do with the results of the analysis. What good is analysis if it doesn’t help you take action?

Additional Reading:

MBA Return on Investment