What's the ROI for an MBA?

• Author: Blodgett, John
• Position: Higher Education - Return on investment for master of business administration degree - Related article: Learn abroad while living in the U.S.

A recent study at the Stanford Graduate School of Business questions the value of an MBA and has raised debate and the ire of faculty on business school campuses throughout the United States.

The findings of professor Jeffrey Pfeffer and Ph.D. candidate Christina Fong challenge the traditional notion that the financial and time investment required of a Master of Business Administration degree is recovered through a resulting increase in starting salary upon graduation. After combing through 40 years' worth of data, they found no conclusive evidence that an MBA pays off.

Furthermore, an internal report drafted earlier this year by the Association to Advance Collegiate Schools of Business (the body which accredits business schools) criticized programs for being behind the curve on critical instruction such as information technology and overly concerned with magazine rankings. And recruiters are finding that an MBA alone is no longer opening the doors it once did and that real-world experience is becoming more important.

Utah Business explored the MBA programs of four Utah institutions to see what the prevailing feelings of faculty are here in the Beehive State. Though each program offers its own particular strengths and focus, all of the administrators interviewed still believe in the value of an MBA-- particularly in its ability to provide a broadened perspective -- and all discussed this value in terms other than salary.

University of Utah

Since the release of the Pfeffer/Fong study, a lot of people have asked Jack Brittain his opinion on an MBA's worth. "I think the value is the same it's always been," says the dean of the U. of U.'s David Eccles School of Business. "(An MBA) gets people in the game, playing at the highest level."

Brittain thinks that the study focused too much on income attainment and not enough on what else the advanced business degree has to offer. "It doesn't guarantee the highest salary, but it does offer an interesting career. The MBA is a breadth degree. It's always been about perspective and broad exposure to a variety of topics." So while the program at the U. does offer courses in up-and-coming fields such as Internet marketing, it also exposes students to a core curriculum of traditional areas such as finance, accounting and statistics.

In addition to a traditional two-year MBA program, the U. offers a Professional MBA that focuses on the needs of students who have experience in the workforce and, in many cases...