There are a lot of people who are fans of the MBA and tout its merits. However, there are also plenty of critics who don't really appreciate it.
One of the most vocal opponents of the MBA has been Elon Musk. You may have heard some of the comments he's made. He never shies away from sharing his opinion and has made it known he has a less than favourable one about MBAs.
In the past Musk has said things like MBA graduates “may be good at powerpoint presentations but they don't know how things work.”
In late 2020, Musk spoke at the Wall Street Journal's CEO Council Annual Summit. One of the comments he made was that MBAs were polluting companies’ ability to think creatively and give customers what they really want.
This commentary came as no surprise to me because it is in line with what Musk has said for years.
At the summit Musk went on to say, “I think there are too many MBAs running companies. There's the MBA-ization of America… There should be more focus on the product or service itself, less time on board meetings, and less time on financials.”
Elon Musk is not the only big name CEO who has taken to demeaning the MBA.
Amazon founder, Jeff Bezos, has also been rather critical of MBAs. However, he acknowledges that he does hire them.
Of course, so does Elon Musk. But Elon Musk likes to say, “I hire people in spite of an MBA, not because of one.”
Peter Thiel is a venture capitalist who started PayPal with Musk. Thiel is known for saying, “never hire an MBA; they will ruin your company.”
As somebody who's taught in Master’s and MBA programmes for over a decade and works with MBAs who are on the job hunt, I struggle hearing this kind of criticism. There is a lot to be said for the MBA degree and I think that if it's used properly it absolutely can help somebody with furthering their career.
Whether you already have an MBA or are thinking of getting one, here are a few things to remember:
- There will always be critics.
- You don’t have to attend a top ranked program to be successful. There are benefits to attending Stanford or Harvard Business School. But alumni status from one of these institutions is not a golden ticket without additional work.
- It’s imperative you take your MBA degree and make it your own.