CEO of RBC: MBA Won't Protect You

I

itera

New member
Joined
Jun 9, 2010
Messages
0
Reaction score
0
From CNBC
John Taft, CEO of RBC U.S. Wealth Management: said staff reductions will likely affect all levels—even those with years of experience and expensive MBA degrees.
“I think the paper value of an MBA might be overstated,” said Taft. “For it to be useful, it needs to form part of a wider package of skills and attributes, and more than a mere credential next to your name.”
Taft said on the job experience in the capacity to perform in the workplace is more important than whether or not you have your MBA.
His thoughts come as enrollment at the nation’s top business schools is growing—as well as online MBA programs that cost tends of thousands of dollars. In fact, Kenan-Flagler Business School at the University of North Carolina began its first ever online MBA program this month. Students have been shelling out $89,000 in tuition for it.
Even though an MBA degree will not necessarily protect your job or revitalize your salary, Taft acknowledges there is an argument supporting the usefulness of MBA degrees. He said they are often best used to reposition yourself and redirect your career.
————-
you could probably replace every “MBA” with “CFA” in this interview and it would probably still hold true. except the full-time MBA costs 250k, while the CFA was probably under 7k
But here’s a question, If you had 2 guys and had to cut 1, everything else similar enough (performance, experience, office politics etc), one had an MBA from Top 5, one had a CFA and strong undergrad. which would you cut?
I would probably cut the MBA
 
I’d cut the MBA.
Maybe it’s just personal experience, but I’ve seen many MBA grads get asked to start the CFA program once they’re on the job, but none of the CFA charterholders are asked to go back and get an MBA.
 
My initial thought was to cut the MBA. That might be a bit short-sighted on my part though, as business development is important at my firm. Top 5 MBA’s generally have a very strong network they can tap into for BD purposes. That being said, a top 5 MBA probably wouldn’t be at my firm in the first place, although we do have one and he’s in a BD role.
Sooooooo, since performance is comparable, I think I would cut the charterholder.
 
I would also cut the CFA assuming performance was the same. Half the people in finance don’t even know what a CFA is. It’s better for your firm to have the top 5 guy.
 
iteracom Wrote:
——————————————————-
>
> But here’s a question, If you had 2 guys and had
> to cut 1, everything else similar enough
> (performance, experience, office politics etc),
> one had an MBA from Top 5, one had a CFA and
> strong undergrad. which would you cut?
>
> I would probably cut the MBA
First, thanks to Mr. Taft for stating something which, to me, is pretty obvious.
Regarding your question, I don’t think it’s that cut and dry. It totally depends what that person is hired to do. If he/she is in some general management or business development role, I’d keep the MBA. If he/she is in some financial analysis or portfolio management role, I’d might keep the CFA. However, if as you said their performance and experience were the same, then what value has the CFA added to their career? Evidently not a lot.
Anyway, the CFA and MBA are two totally different certifications and I don’t know why people so often speak of them in the same breath, but under the parameters of your hypothetical situation I would cut the CFA.
 
Keep in mind guys, we are talking about: asset management
That’s what the original article is about.
And numi, I think we can agree that to clients, the CFA behind your name ads some value. No one has an MBA behind their name.
I’d say this is the kicker for booting the MBA
 
If their performance was exactly the same and they are both on the chopping block then I would assume the are weaker performers and cut both of them.
 
all he’s got is a bachelor of arts, and a Master’s degree of some kind from Yale (in public service or management or something).
if you can get an MBA and a CFA, your academic credentials (assuming the MBA is from a good school) are better than his, especially considering his bachelor’s degree is just a BA.
I don’t think this guy should be knocking mbas specifically; he should be saying education in general doesn’t guarantee safety, any more than anything else does. Nothing guarantees safety, but all else being equal, i’d prefer to have the mba than to not.
 
Little sidebar: I think further education can make sense for many, but at what cost? From 2000 through March 31, 2011 the Energy subcomponent of CPI rose 101.7%. The College Tuition and Fees subcomponent of CPI rose 101%. Autos/furnaces are more efficient than they were in 2000, can the same be said for education? I personally think not, defining efficiency as placement rates and started salaries post-MBA per dollar spent on the MBA. While an MBA can still launch a new career, elevate an existing career and be a life changing experience, you are likely receiving less bang for your buck than you were ten years ago. No surprise, and the same can be said of most undergraduate programs, I just find this interesting.
 
Personally, I have absolutely no desire to ever go get my MBA, either from Harvard or the University of Phoenix. I’m so tired of school and think there is definitely a diminishing marginal utility to additional degrees (I have my Masters of Finance, which has turned out to be far from useful).
 
You must log in or register to reply here.
Back
Top