An online MBA: Effort, investment, and ROI

Abstract

Every investment considers risks and rewards. Risks can be the funds required for a capital project or the amount of time required for a consulting assignment and the potential gains. Whether an organization or an individual, the process is similar. What are the costs and what are the returns? When considering an MBA, as an individual, the capital investment (tuition fees) and the operating costs (materials, travel, technical tools) need to be estimated in relation to the potential rewards. The latter is more challenging to predict than the former in many cases. The intangible rewards such as increased knowledge, credibility, and expertise are an unknown commodity at the outset. Where an individual is assessing an MBA program which must be self-financed, the risks for the individual are much greater and are relatively negligible for their employer. The author's personal experience was one where as a mature MBA candidate, at 50-years of age, wondered how he could justify the investment - which at the time was 45% of his annual salary. He needed to identify potential job opportunities and the estimated level of income and consider lifestyle choices. The public entity he was working for offered no financial support, and the senior management position he held was plateauing. Through market research, he felt that attaining an MBA would open more doors than remaining with his status quo having a business diploma. While he enjoyed the challenges of supply chain management, he also considered teaching and or consulting within this field. Taking an MBA online reduced travel costs by 90%; the online format allowed him to accommodate the studies into his work and leisure time; the career opportunities he identified within the supply field all required an MBA. Actual outcome: his return on investment provided a payback of less than 5 years. The study time was more than he expected, but the rewards also exceeded his expectations.