Improving business through education: Why invest in an MBA when times are tight?

IN the present climate, it is fair to say that job security is less than certain. Many people are worried about their future career path or fear redundancy, and are seeking to recession-proof their skills through education.

An MBA has always been seen as a way to change career paths as it steps outside of industry specifics to give a broad all-round view of business. The programme has international recognition and enhances top managerial skills, as well as giving candidates greater confidence and, in some cases, the entrepreneurial drive to go it alone.

In a recent QS TopMBA Applicant Survey, around 27% of MBAs surveyed expected to be running their own business within 10 years. Although you don’t need an MBA to start a business, the unique mix of skills and knowledge that students learn can significantly lessen the ‘trial and error’ stage of business development and help to shorten the time from start-up to profit.

But entrepreneurial skills are not wasted on those who do not go on to start their own ventures. For businesses looking to retain their talented staff members, sponsoring individuals through the MBA is a great incentive, as well as a positive investment in the organisation’s future.

MBA graduates are able to bring business acumen, creative thinking and insight into cutting-edge processes to businesses, making them prime candidates for management opportunities and implementing innovative and effective new processes.

And in the current economic climate, organisations need people who can grasp the complicated and interrelated nature of business problems; people who can be flexible and adaptive in challenging conditions.

The Hull MBA has been redesigned to focus on managing complex business problems in times of challenge and change, bringing in expertise from all areas of the school. In uncertain times, this integrated perspective capitalises on the school’s long tradition of research expertise and practical experience in this area and shows students that business problems do not fit neatly into one particular area.

An MBA is a significant investment, whomever is paying, but one that will ultimately payoff. On average, salaries for MBA graduates are higher and in the increasingly competitive job market, it is imperative that graduates have high quality and relevant qualifications to stand out. And for businesses that are sponsoring students, they develop a talent resource which has a loyalty to the organisation as well as gaining access to the latest in industry thinking.

Although not the budget option for education in terms of money and time investment, managers with the versatile qualification cannot fail to benefit both individuals and businesses in these uncertain times.

 MBA case studies:

Rory Clarke, Director at J R Rix & Sons Ltd, currently on the Hull Executive MBA

‘For me, studying the Executive MBA is about auditing my knowledge, reinforcing what I already know and discovering where my skills gaps are. We are growing as a business and I want to ensure that I am prepared for the changing needs of industry.

‘From a senior management perspective an MBA provides a business toolkit which gives a greater understanding in a wide range of business disciplines. As directors of a company our responsibilities are to our shareholders, employees, customers and suppliers to create and maintain a successful and sustainable business. Success in business is about providing good customer service at the right price, keeping up with technology, staying ahead of the competition, and complying with legislation and regulation. It is about creating the culture and values within the business required for future success. I believe that the MBA not only helps us to do this but also provides assurance to all of those stakeholders.

‘The Managing Director of our shipping business, James Doyle, is also on the MBA course. Whether it be finding cost savings or identifying new opportunities and project management I am sure that he benefits from the programme and, of course, so does the company.

‘In the current economic climate training budgets have been slashed but short term savings may well lead to long term costs. What are the risks of training people versus the risks of not training them?

Robert Conway – recent Hull MBA graduate

If I were to summarise what the MBA meant to me in two words I’d have to say ‘clarity’ and ‘confidence’. The modular study programme served to incrementally bolster confidence, and emphasise that establishing my own business was a real possibility. The interconnectedness of the curriculum and the dynamics of group study offered clarity of vision.

Just one month after completing the MBA I chose to branch out from a career spanning 20 years within one particular industry to establish Dokeo Ltd (a project management consultancy) – and I’m enjoying every minute. I have recently secured a six month contract with a major financial institution, during which time I’ll be focusing on what to study next so that I can begin to develop my business towards offering training and personal development.

In my opinion Hull University Business School was the perfect place to study full-time for an MBA. A combination of published academics with real world experience, visiting professors, guest lectures, and excellent facilities create an inspirational and invigorating learning environment. The course was a truly positive experience, offering time to reflect and recognise one’s strengths and interests.

For more information about Executive MBA courses at Hull University Business School, click here.