Is an MBA worth it

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A report commissioned by Finweek in conjunction with MBAconnect.net

Research report prepared by: www.feedbackrocket.com

Should I do an MBA or not?
Examining the impact of the MBA on the lives of MBA students and graduates
A report commissioned by finweek in conjunction with mbaconnect.net

JANUARY 2012

Should I do an MBA or not?

Abstract
This report aims to answer the question: "Should I do an MBA or not?" Traditionally, business schools and other media have focused only on the impact the degree has on one's career and financial remuneration. However, this is just one part of the overall impact the MBA degree has on the individual. There are other important areas which have a real impact, but which have not been properly explored before. This report covers the following areas where the MBA degree has an impact: 1) Subjective Value  What are the main reasons people do an MBA? And did the MBA meet expectations in these areas? In retrospect, did graduates make the right choice to study an MBA? 2) Career  Did the MBA have an impact on graduate’s careers (in terms of promotion, changing industries, mobility)? 3) Personal Life  How did the MBA impact areas of students’ personal lives (e.g. relationships, health, etc.) while studying? 4) Network  Did the MBA network help graduates in their post-MBA endeavours (e.g. jobs, business opportunities)? 5) Financial Impact  How has the MBA contributed to graduates’ salary progression? Is there a positive ROI on the MBA degree? 6) Outlook on Life  Has the MBA changed the individual’s world-view? And has it changed their view of their own potential? 7) Alumni Management  How important and effective are alumni management activities? The primary aim of the research is to provide a holistic and well-balanced view of MBA students’ and graduates’ perceptions of the overall value and impact of the MBA degree. As a secondary question, we also explore how the perceptions of the students and alumni differ according to business school, based on the different variables that we assessed. Some schools might perform better in terms of the network that results, others might perform better in terms of the impact on personal life, and so on. After reading this report, the reader should be able to make a fully informed assessment of whether or not do an MBA, incorporating all the factors that might affect that decision. The reader would also be in a position to assess which of the accredited South African business schools are strongest in those areas of greatest importance to the reader (based on the perceptions of the MBA students that actually studied there).

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A report commissioned by Finweek in conjunction with MBAconnect.net

Should I do an MBA or not?

About the Sponsors & Partners
This research report was commissioned by Finweek magazine, in conjunction with MBAconnect.net, and the report was compiled by FeedbackRocket.com.

About Finweek
Finweek is a leading investment publication focused on empowering South Africans to take control of their finances, their professional careers and entrepreneurial ventures. (http://www.fintalk.co.za / [email protected])

About MBAconnect.net
MBAconnect.net is a social network exclusively for MBA students and alumni from all business schools in South Africa and worldwide. The site facilitates MBA-level jobs, networking, business events, knowledge-sharing and a host of other fantastic opportunities for the global MBA community. (http://www.mbaconnect.net / [email protected])

About FeedbackRocket
FeedbackRocket.com has developed award-winning technology which enables important work-place conversations that wouldn't happen face-to-face. The company has reinvented many of the traditional HR tools – including the 360 degree review, climate survey, exit interview & management feedback. A strong actuarial and statistical approach underlies the company philosophy. (http://www.feedbackrocket.com / [email protected])

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A report commissioned by Finweek in conjunction with MBAconnect.net

Should I do an MBA or not?

Executive summary
Of all academic degrees, the MBA has garnered more interest in the popular press than any other. This may be due to its elitist nature. Or it may be due to the historical perception that the MBA is a ticket to career advancement and huge pay rises. It may even be due to the fact the MBA is one of the only academic degrees specifically geared towards making people more effective in a business environment. Whether or not historical perceptions are valid, one thing is certain - the MBA degree has increased in popularity dramatically over the years. This rise in popularity has not only caused fierce competition between the older, more established business schools, but it has also spawned a raft of new entrants offering cheaper, more accessible MBA degrees. The problem with MBA surveys The competition between business schools has also resulted in a number of MBA surveys – some more popular than others - with the aim of ranking the respective schools to help prospective students make the right choice. After all, i t’s a big decision to study an MBA. The price tag is significant, it requires a huge time commitment and adds to the pressure of an already stressful work-life. Unfortunately, there are a number of problems with the traditional MBA surveys. These include the use of subjective ratings with no real basis for comparison, an overall focus which is too narrow, and flawed calculation methodologies. Another problem is the ‘large-school bias’ - the results of traditional MBA surveys are usually biased in favour of the larger and more established schools. The main problem, however, is that they focus on the features of the MBA program rather than its impact. For example, the focus might be on the number of core and elective courses, acceptance rates, pass rates, size of faculty, and so on. Ultimately, these features are all irrelevant – what really matters is how the MBA degree impacted the life of the individual. Why this survey is different This survey addresses most of the problems associated with the traditional MBA surveys, including the distorting effects of reputation. It aims to comprehensively answer the questions that are most relevant to prospective students:

“Should I do an MBA or not?” “If I do an MBA, what is the likely impact on my life – in all areas that are important to me (not just career and remuneration, but also things like my outlook on life, network, status, personal life, etc.)?” “And which schools are strongest in the areas that are most important to me?”

There is no overall ranking of business schools in this survey. Rather, we show which schools are best in different areas - based on the impact the MBA has had on the students and alumni of those schools, according to their own judgment. The best business school for a given individual might be very different to that for another individual, based on that person’s unique preferences and life priorities. Page 4
A report commissioned by Finweek in conjunction with MBAconnect.net

Should I do an MBA or not?

What does the sample look like? This report is based on a comprehensive survey of individuals who have either completed an MBA degree, or are currently studying towards one, at an accredited South African business school. All accredited South African business schools are represented, with the exception of Regenesys and North-West University (Mafikeng) who elected not to participate, as well as UNISA,TGSL and TUT (who ignored the initial research invitation, and all subsequent email and telephone communication). Suitably large sample sizes were obtained for each of the participating business schools. In total, just over 10,000 MBA graduates and students were invited to participate in the survey, and 1,575 questionnaires were completed (with 1,800 respondents starting the survey). The sample was obtained from two different sources: 1) MBAconnect.net (http://www.mbaconnect.net), the largest independent social network for MBA students across South Africa (accounting for nearly a quarter of completed responses) 2) Directly from the respective business school databases (supplied by the business schools with appropriate permissions).     

There was a 1:2 split between current MBA students and graduates, with over half of graduates having completed their MBA within the last 5 years. Female respondents made up 25% of the sample. Respondents were most likely to be aged 30-39, with good representation from older ages. Over half the respondents were senior or executive managers. The sample reflects a broad cross-section of industry.

Is the MBA worth doing? Respondents were asked whether, in retrospect, they had made the right choice in deciding to do an MBA. The response was overwhelmingly positive, with 86% of respondents stating they had definitely made the right choice. Only 1% of respondents regretted the decision to study their MBA. Even those MBA graduates who are currently unemployed were very happy with their decision to study the MBA. Do you want the good news or the bad news first? Clearly, the MBA degree is worth doing. However, this doesn’t tell the whole story. We’ll see later that the MBA has a hugely positive impact on many areas of the lives of students and graduates. But it’s not all good news. There are significant sacrifices that students must make in the short term while studying the MBA degree. So the rest of the executive summary is broken up into two sections: 1) THE GOOD NEWS – we examine the areas where the MBA degree has a positive impact 2) THE BAD NEWS – we then discuss the areas of negative impact, for a balanced overall view Page 5
A report commissioned by Finweek in conjunction with MBAconnect.net

Should I do an MBA or not?

THE GOOD NEWS
Why did people do an MBA? And did it meet their expectations in these areas? Despite popular perceptions, career advancement and financial motives were not the main reasons people decided to study an MBA. By far, the main reason was the’ Attainment of Business Knowledge’, followed by ‘Confidence in a Business Setting’, and then ‘Improvement in Soft Skills’. In summary, people mainly do an MBA to ‘be more effective in a business environment’. Business knowledge was not only the most popular reason for doing an MBA, but also the one for which the business schools performed best in meeting the expectations of MBA graduates and students. How did the MBA impact people’s careers? Career advancement is traditionally seen as a primary reason for doing an MBA.  For those who got a promotion and/or greater responsibility after the MBA, to what extent did the MBA contribute to this? 77% of respondents got a promotion and/or greater responsibility after the MBA. However, this shouldn’t be taken as an indication of the success of the MBA in causing career advancement since these people might have been promoted even without an MBA. Rather, we should focus on that sub-sample who had advanced their careers and then ask to what extent their MBA contributed to this. On a scale of 0-10 (with 0 being ‘Not a contributing factor’ and 10 being ‘A big contributing factor’, the average score of this sub-sample was 7.4.  Did the MBA make people more effective in their jobs? Over two-thirds of respondents felt that the MBA definitely made them more effective in their jobs. Only 3% said that it didn’t.  Did the MBA make people more effective leaders in their jobs? Over 90% of respondents believed the MBA made them more effective leaders in their jobs. This stemmed mainly from 3 sources: the leadership skills taught during the MBA course, the skills learned as a result of the group dynamic, and improving the level of self-awareness of the students.  Did the MBA improve decision-making in the work environment? Over 95% of respondents felt that the MBA improved their decision-making in the work environment.  Did the MBA give people more credibility in their career/business? Nearly 90% of respondents felt the MBA gave them more credibility in their careers or businesses. The MBA not only elevated the perceptions that others had of the graduate, but also the graduate’s ability to interact with different levels of businesspeople.  For corporate employees who changed industries after the MBA, to what extent did the MBA contribute to this? As much as 56% of respondents changed industries after the MBA. Of these 64% attested that the MBA was a big contributing factor to the change. Page 6
A report commissioned by Finweek in conjunction with MBAconnect.net

Should I do an MBA or not?

 Did the MBA make people more internationally mobile? Schools were somewhat less effective in helping graduates become more internationally mobile, with an average score of 6.8 (with 10 representing ‘Yes, definitely’ and 0 representing ‘No, definitely not’).  For those who started their own business after the MBA, to what extent did the MBA contribute to this decision? Over half of those who started their own business after the MBA said the MBA was a big contributing factor to this decision. However, not all respondents were enthusiastic about their ability to start their own businesses. Many felt the MBA is geared more towards the corporate world than the entrepreneurial environment. What was the financial impact of the MBA? Interestingly, when asked what they liked most about the MBA, not a single respondent spoke about the positive financial impact of the MBA. Their focus shifted to other things during the course of their studies.  Is the MBA worth what people paid for it? People felt very strongly that the MBA was worth the money that they paid for it. Even those who thought the MBA was not worth it from a financial point of view were still glad they did it. Graduates were more convinced of the financial value of the MBA than current students. Also, as people got older, so they thought the financial return on their MBA was higher. There were also differences according to seniority in the organization - the higher the level of management, the greater the percentage of respondents who believed the MBA was definitely worth what they paid for it.  If the MBA is worth it, then how long does it take for the return to be realised? For those who believed that the MBA was worth what they paid for it, the average payback period for the return to be realised was approximately 1.8 years. If the non-financial returns of the MBA were to be considered, it is likely that the payback period would be significantly shorter.  What impact does the MBA have on graduates’ salary growth? The impact of the MBA on salary growth has been examined in a number of other surveys. However, there are some serious flaws in the calculation methods typically used. Problems typically include heterogeneity of the comparison groups, and no allowance for the time value of money or the effects of wage inflation. We employed a more accurate approach to calculating the impact of the MBA on future salary growth, avoiding the problems associated with the usual calculation methods. The average annual rate of salary growth after the MBA was 16.5% per annum, though there is significant variability around this average value. On average, the MBA adds an extra 5.5% per annum to expected salary growth post-MBA. The expected increase in salary as a result of the MBA is lower for females than males. Also, the impact of the MBA on salary growth decreases with age, but increases as the graduate moves up the management ranks. The average salary growth rate of Black MBA students and graduates is higher than for the other population groups, though the overall impact of the MBA was slightly lower. Indian Page 7
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Should I do an MBA or not?

MBA graduates benefited the most in terms of salary growth related to the MBA degree.  What impact does the MBA have on business turnover? For those MBA graduates who run their own businesses, there seems to be a substantial average increase in annual turnover as a result of the MBA degree (in the order of 9% p.a.). Did the MBA change your outlook on life? Over two-thirds of respondents stated that the MBA had definitely changed their outlook on life. This change in outlook was often unexpected and was very broad in how it affected people. For many, it opened their eyes to new opportunities, renewed their interest in the world outside, gave them fresh perspectives, and created a different view of life and its purpose. Did the MBA change your view of yourself and your own potential? The MBA had a huge impact on people’s view of their own potential. MBA students learned a lot about themselves in the course of their studies, which contributed to the change in how they viewed themselves. The MBA also had a huge impact on people’s levels of confidence and self-belief. Did the MBA elevate your status in your business and your community? The MBA had a positive effect in elevating the holder’s status amongst his or her work colleagues. It also had a positive effect in elevating the holder’s status amongst his or her friends, but to a lesser extent than work colleagues. Did the MBA help you become a more effective leader in your personal life? The MBA is marketed as a business degree, yet amazingly it helped the majority (81%) of respondents to become more effective leaders in their personal lives as well. What is the value of the MBA network? One of the side benefits arising from the MBA degree is the network to which MBA students and graduates are exposed. This can often have a life-changing impact and the benefits can extend many years after the degree has been completed.  How impressed were people with the calibre of their fellow students? The quality of the MBA network is directly affected by the quality of the students that the individual interacts with during their MBA studies. We asked respondents whether or not they were impressed with the calibre of their fellow students. The result was very positive, with 45% being very impressed and an equal percentage somewhat impressed with the quality of their classmates.  How useful is the MBA network for career and business? Given the long hours spent with their fellow classmates, it seems natural that students would identify others that could play a role in their career or business goals. In fact, we found that people often decided to study an MBA with these specific goals in mind. Over a third of students were specifically hoping to find a job through the MBA network, but only 14% of them were successful. People who were specifically Page 8
A report commissioned by Finweek in conjunction with MBAconnect.net

Should I do an MBA or not?

looking to employ someone through the network were much more successful – 24% of these did so. Those who actively sought a business partner through the network were successful in 38% of cases. Over a quarter of respondents found a business opportunity through the MBA network. Nearly a quarter of respondents aimed to attract new clients from their network. Of these, 31% were successful. About half the sample found the MBA network useful in resolving a business challenge.  How useful is the MBA network for personal relationships? A remarkable 81% of respondents made a good friend through the MBA network. Interestingly, a further 5% actually found a relationship partner / spouse through the MBA network. What did you like most about the MBA? The results have shown that the MBA benefits people in many different areas of their lives. But what do they like most about their MBA experience? The answer to this question was captured in 1,429 open-ended free responses. Each of these were carefully read and tagged according to the main theme of the response.  Theme 1: Impact of Interactions (mentioned in 24% of responses) MBA students really valued their interactions with high-calibre like-minded people during their MBA studies. They appreciated the quality of the network they were now part of – both the opportunities that result from the network, as well as the social benefits.  Theme 2: Stimulating Environment (mentioned in 14% of responses) MBA students enjoyed the high-level intellectual stimulation and interactivity of the MBA classroom and broader environment. Much of this stimulation stemmed from the diversity of students in the MBA classroom and the resulting differences of opinion. The MBA classroom also created a safe place to explore new ideas and different thinking.  Theme 3: Attainment of Business Knowledge (mentioned in 14% of responses) People appreciated the broad application of the business knowledge that they gained during their MBA studies.  Theme 4: Holistic Business Understanding (mentioned in 14% of responses)

MBA students valued the greater holistic understanding of business that the degree provided.  Theme 5: Broad Exposure (mentioned in 13% of responses)

The MBA degree involved exposure to many disciplines, and included diverse course content which the students enjoyed.

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A report commissioned by Finweek in conjunction with MBAconnect.net

Should I do an MBA or not?



Theme 6: Syndicate/Group Work (mentioned in 8% of responses)

A number of students mentioned that the syndicate or group work was one of the best aspects of the MBA degree.  Theme 7: New Thinking & Challenging Perceptions (mentioned in 7% of responses)

MBA students valued the exposure to new ideas, concepts and tools. The course challenged their thinking and their perceptions, and exposed them to new valuable experiences.  Theme 8: Intensity & Pressure (mentioned in 7% of responses)

A fairly large number of respondents mentioned that the intensity, pressure and pace of the MBA were some of the things they actually liked best about the course. There are a number of reasons for this. The MBA tends to attract ambitious people who thrive on challenges. The pressure and pace helped students learn new skills and grow, and forced them to learn quickly. It also helped them test their limits, and gave them a new respect for their own potential. Finally, it heightened their sense of achievement when tasks were completed.

THE BAD NEWS
The MBA has a positive long-term impact on graduates’ lives in a number of different areas. However, this is not the full story. Some people didn’t benefit much from the MBA at all. And, more importantly, we’ll soon see that the MBA requires significant sacrifices, particularly in the short term. The negative picture presented in this report is probably understated, due to the ‘survivorship bias’ – the sample mostly excludes those that dropped out of the course before completion. Did the MBA actually have a negative impact on people’s careers? The general perception is that people study an MBA in order to advance their careers. However, we found that some people’s careers actually suffered as a result of the MBA - 8% of the sample declined a promotion or were passed over for a promotion because of constraints imposed by the MBA. This was more of a problem for non-managers and those in junior management positions. Was there a negative financial impact during the MBA? During the MBA studies, the majority of students (68%) experienced a negative impact on their lifestyle from a financial point of view, needing to cut back on lifestyle expenses. In addition, more than half the respondents had to take leave to study the MBA, which impacted on either vacation time or had a negative financial impact if additional leave days were taken. How did studying for the MBA impact on people’s personal lives? As a result of the pressure and work-load, MBA students report a negative impact on their personal lives. We looked at the impact in 9 areas: people’s marriages, relationships with friends and family, their sex life, health, diet, exercise, sleep, Page 10
A report commissioned by Finweek in conjunction with MBAconnect.net

Should I do an MBA or not?

recreation/hobbies and stress levels.  How did studying for the MBA impact people’s marriages? The MBA is sometimes termed the ‘divorce degree’ due to the negative impact it can have on people’s marriages. In fact, 7% reported a very negative impact on their marriage, with a further 37% reporting a somewhat negative impact. Some people actually reported an improvement in their marriage. In many cases, this was due to the couple going through the MBA together.  How did studying for the MBA impact people’s sex life? Eight percent of respondents reported a very negative impact on their sex life, with a further 34% reporting a somewhat negative impact.  How did studying for the MBA impact people’s relationship with friends and family? Relationships with friends / family suffered during the MBA studies - 10% reported a very negative impact, with a further 49% reporting a somewhat negative impact.  How did studying for the MBA impact stress levels? A quarter of respondents reported a very negative impact on their stress levels, with a further 56% reporting a somewhat negative impact.  How did studying for the MBA impact health? Five percent of respondents reported a very negative impact on their health, with a further 31% reporting a somewhat negative impact.  How did studying for the MBA impact diet? Diet was also negatively affected, with 15% reporting a very negative impact, and a further 33% reporting a somewhat negative impact.  How did studying for the MBA impact exercise levels? Twenty-two percent of respondents reported a very negative impact on their exercise levels, with a further 36% reporting a somewhat negative impact.  How did studying for the MBA impact sleep? 33% reported a very negative impact on their sleep, with a further 49% reporting a somewhat negative impact.  How did studying for the MBA impact recreation and hobbies? Time spent on recreation or hobbies was the worst affected of all the factors discussed thus far - 42% reported a very negative impact on their hobbies / recreation, with a further 41% reporting a somewhat negative impact.  How the MBA impacts on your personal life On average, students experienced problems in 5 of the 9 areas explored, with only 3% escaping a negative impact in at least one of these areas. A new MBA student can also expect to experience a very negative impact in at Page 11
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Should I do an MBA or not?

least one area (as reported by 62% of respondents). Those that do, on average, experienced a very negative impact in between 2 and 3 areas. Do business schools continue to impact students’ lives after the MBA? The most important alumni activity for business schools is to help keep the business knowledge of their alumni up-to-date. Unfortunately, the schools are not seen to be very effective in this activity. The business schools are particularly weak in helping graduates access MBA-level job opportunities. They are also not very effective in providing graduates with networking opportunities, helping graduates start and grow their businesses, and helping them build their personal brands. Business schools are somewhat effective in hosting business events, letting graduates know about business events, and communicating regularly with their graduates. These activities are all important to the graduates. Graduates would like business schools to continue having an impact on their lives once the MBA is finished, but the schools are largely failing to meet these expectations.

What didn’t you like about the MBA? We received 1,335 open-ended responses to the question about what people didn’t like about the MBA.  Theme 1: Wouldn’t Change Anything (mentioned in 25% of responses)

By far the most popular response was that nothing about the MBA should be changed.  Theme 2: Too Much Work (mentioned in 12% of responses)

Many MBA students felt the work-load was too high, and the course was too time-consuming.  Theme 3: Too Fast-Paced (mentioned in 10% of responses)

Many MBA students also felt that the pace of the degree was too fast, with insufficient time to reflect on lessons learned.  Theme 4: Weak Lecturers/Courses (mentioned in 10% of responses)

In many cases, students felt that certain lecturers or tutors were weak. There was also a general desire for more guest lecturers active in the business world (as opposed to academics with little practical experience). Students also mentioned that the course content is sometimes weak. The courses mentioned most often were Marketing, Statistics and IT. Other students felt some of the courses were outdated.  Theme 5: Application to Business (mentioned in 6% of responses)

Some students felt that courses were too theoretical and they either found Page 12
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Should I do an MBA or not?

it difficult to apply the principles in practice, or the content had little practical relevance. Many mentioned that there was a distinct lack of South African focus, with most business schools relying on international case studies and study material. Some students felt that the broad nature of the MBA means that it provides a superficial understanding of topics and can give a false sense of confidence in the applicability of the knowledge to the real world.  Theme 6: Poor Administration (mentioned in 6% of responses)

A number of students felt that poor administration by their business school impacted negatively on the experience. Poor communication from the school was also mentioned as a problem. Ironically, a number of respondents noted a disconnect between the cutting-edge business thinking proposed in the course content and the way the schools themselves were run.  Theme 7: Research Project Issues (mentioned in 5% of responses)

Some students had issues with the research project component of the MBA degree.  Theme 8: Frustrations with Group Work (mentioned in 4% of responses)

Group or syndicate work was a source of great frustration for many students. The frustration was mainly due to the inequitable sharing of the workload in the groups.  Theme 9: Behind the Curve (mentioned in 3% of responses)

Some students felt that the MBA course was failing to keep up with the changing times. In addition, a common complaint was that the use of exams as the primary assessment method was outdated or inappropriate.

Conclusion The broad conclusion is that the good news far outweighs the bad news. The MBA offers tremendous benefits to those who complete it, but the personal sacrifices in the short-term certainly need to be considered before deciding to embark on the journey of studying towards one. As one student put it: "I am enjoying every minute even though the sacrifices are great." (Current MBA Student, GIBS)

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A report commissioned by Finweek in conjunction with MBAconnect.net

Should I do an MBA or not?

Contents
ABSTRACT ABOUT THE SPONSORS & PARTNERS EXECUTIVE SUMMARY 1. INTRODUCTION
1.1 Problems with traditional MBA surveys 1.2 The problem with reputation 1.3 Why this survey is different

2 3 4 17
17 18 19

2.

WHAT DOES THE SAMPLE LOOK LIKE?
2.1 Which business schools are represented? 2.2 How big is the sample? 2.3 What is the demographic breakdown of the sample? 2.3.1 Current Students vs Graduates 2.3.2 Gender 2.3.3 Age 2.3.4 Population Group 2.3.5 Management Level 2.3.6 Current Remuneration 2.3.7 Industry 2.3.8 Method of Payment

20
20 21 21 21 22 22 23 23 24 24 25

3.

IS THE MBA WORTH DOING?

26 29

DO YOU WANT THE GOOD NEWS OR THE BAD NEWS FIRST?

4. WHY DID PEOPLE DO AN MBA? AND DID IT MEET THEIR EXPECTATIONS IN THESE AREAS? 31
4.1 Why did people decide to study an MBA? 31 4.2 Did the MBA meet people’s expectations in the areas that are important to them? 32 4.2.1 What about the other reasons for studying an MBA? 33

5.

HOW DID THE MBA IMPACT PEOPLE’S CAREERS?

37

5.1 For those who got a promotion and/or greater responsibility after the MBA, to what extent did the MBA contribute to this? 37 5.2 Did the MBA make people more effective in their jobs? 5.3 Did the MBA make people more effective leaders in their jobs? 5.4 Did the MBA improve decision-making in the work environment? 5.5 Did the MBA give people more credibility in their career/business? Page 14
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39 40 42 43

Should I do an MBA or not?

5.6 For corporate employees who changed industries after the MBA, to what extent did the MBA contribute to this? 45 5.7 Did the MBA make people more internationally mobile? 47 5.8 For those who started their own business after the MBA, to what extent did the MBA contribute to this decision? 48

6.

WHAT WAS THE FINANCIAL IMPACT OF THE MBA?
6.1 Is the MBA worth what people paid for it? 6.1.1 Do responses to this question differ by demographics?

50
50 51

6.2 If the MBA is worth it, then how long does it take for the return to be realised? 53 6.3 What impact does the MBA have on graduates’ salary growth? 6.3.1 A better approach 6.3.2 So what impact does the MBA have on salary growth? 6.3.3 Some interesting differences between demographic groups 6.4 What impact does the MBA have on business turnover? 54 55 56 57 58

7.

DID THE MBA CHANGE YOUR OUTLOOK ON LIFE?

59

8. DID THE MBA CHANGE YOUR VIEW OF YOURSELF AND YOUR POTENTIAL? 62 9. DID THE MBA ELEVATE YOUR STATUS IN YOUR BUSINESS AND COMMUNITY? 65 10. DID THE MBA HELP YOU BECOME A MORE EFFECTIVE LEADER IN YOUR PERSONAL LIFE? 68 11. WHAT IS THE VALUE OF THE MBA NETWORK?
11.1 How impressed were people with the calibre of their fellow students? 11.2 How useful is the MBA network for career and business? 11.3 How useful is the MBA network for personal relationships?

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70 72 77

12.

WHAT DID YOU LIKE MOST ABOUT THE MBA?
12.1 Theme 1: Impact of Interactions (mentioned in 24% of responses) 12.2 Theme 2: Stimulating Environment (mentioned in 14% of responses)

79
79 80

12.3 Theme 3: Attainment of Business Knowledge (mentioned in 14% of responses) 81 12.4 Theme 4: Holistic Business Understanding (mentioned in 14% of responses) 83 12.5 Theme 5: Broad Exposure (mentioned in 13% of responses) 12.6 Theme 6: Syndicate/Group Work (mentioned in 8% of responses) 83 84

12.7 Theme 7: New Thinking & Challenging Perceptions (mentioned in 7% of responses) 85 12.8 Theme 8: Intensity & Pressure (mentioned in 7% of responses) 86

13. DID THE MBA ACTUALLY HAVE A NEGATIVE IMPACT ON PEOPLE’S CAREERS? 91
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14. MBA?

WAS THERE A NEGATIVE FINANCIAL IMPACT DURING THE 92

15. HOW DID STUDYING FOR THE MBA IMPACT ON PEOPLE’S PERSONAL LIVES? 95
15.1 How did studying for the MBA impact people’s marriages? 15.2 How did studying for the MBA impact people’s sex life? 96 98

15.3 How did studying for the MBA impact people’s relationship with friends and family? 100 15.4 How did studying for the MBA impact stress levels? 15.5 How did studying for the MBA impact health? 15.6 How did studying for the MBA impact diet? 15.7 How did studying for the MBA impact exercise levels? 15.8 How did studying for the MBA impact sleep? 15.9 How did studying for the MBA impact recreation and hobbies? 15.10 How the MBA impacts on your personal life 102 104 106 108 110 112 114

15.10.1 How do different demographic groups experience the impact on their personal lives? 114

16. DO BUSINESS SCHOOLS CONTINUE TO IMPACT STUDENTS’ LIVES AFTER THE MBA? 118 17. WHAT DIDN’T YOU LIKE ABOUT THE MBA?
17.2 Theme 2: Too Much Work (mentioned in 12% of responses) 17.3 Theme 3: Too Fast-Paced (mentioned in 10% of responses) 17.5 Theme 5: Application to Business (mentioned in 6% of responses) 17.6 Theme 6: Poor Administration (mentioned in 6% of responses) 17.7 Theme 7: Research Project Issues (mentioned in 5% of responses)

121
122 123 124 125 125

17.1 Theme 1: Wouldn’t Change Anything (mentioned in 25% of responses) 121

17.4 Theme 4: Weak Lecturers/Courses (mentioned in 10% of responses) 123

17.8 Theme 8: Frustrations with Group Work (mentioned in 4% of responses) 126 17.9 Theme 9: Behind the Curve (mentioned in 3% of responses) 127

18.

CONCLUSION

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1. Introduction
Of all academic degrees, the MBA has garnered more interest in the popular press than any other. This may be due to its elitist nature. Or it may be due to the historical perception that the MBA is a ticket to career advancement and huge pay rises. It may even be due to the fact the MBA is one of the only academic degrees specifically geared towards making people more effective in a business environment. Whether or not historical perceptions are valid, one thing is certain - the MBA degree has increased in popularity dramatically over the years. This rise in popularity has not only caused fierce competition between the older, more established business schools, but it has also spawned a raft of new entrants offering cheaper, more accessible MBA degrees.

The increasing popularity of the MBA degree has created greater competition between schools, and resulted in a number of ranking surveys.

The competition between business schools has also resulted in a number of MBA surveys – some more popular than others - with the aim of ranking the respective schools to help prospective students make the right choice. After all, it’s a big decision to study an MBA. The price tag is significant, it requires a huge time commitment and adds to the pressure of an already stressful work-life. Unfortunately, there are a number of problems with the traditional MBA surveys.

1.1 Problems with traditional MBA surveys
There are numerous problems with the traditional MBA surveys. The main problem is that they focus on the features of the MBA program rather than its impact. Other problems include the use of subjective ratings with no real basis for comparison, an overall focus which is too narrow, and flawed calculation methodologies.
The main problem with many traditional MBA surveys is that they focus on the features of the MBA program at various schools rather than the impact of the program. For example, the focus might be on the number of core and elective courses, acceptance rates, pass rates, size of faculty, and so on. Ultimately, these features are all irrelevant – what really matters is how the MBA degree impacted the life of the individual. As a student at one of the smaller schools said:

“I wish that fellow students would respect that the institution is a conduit not an outcome - I study with a provider that suits my needs and my pocket. I am my qualification, not the venue in which I attend classes or write exams."

Another problem is that students are often asked to rate the quality of the course content, lecturers, and so on, in order to compare the various business schools. This basis for comparison is flawed since students have not been exposed to any other business schools against which to measure – all they have is their experience of their own school. When the MBA surveys do focus on the impact of the MBA degree, they usually consider how the individual’s life has changed in only two areas - career and remuneration. This is a very narrow view. In addition, the calculation methodology used to determine the impact on salary is usually flawed (as discussed in a later section). In many cases, traditional surveys present misleading statistics as proof of the impact of the MBA on career advancement. For example, they might indicate that in the sample of MBA graduates, there is a high percentage of senior managers –

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and then conclude that an MBA is a ticket to senior management. Of course, this might simply be due to a higher propensity amongst senior managers to do the MBA, or it might reflect that the MBA tends to attract more ambitious people who may have reached senior management levels even without an MBA. A rather cynical point is that the surveys which are commissioned by media houses often reflect the agenda of the business schools (i.e. the advertisers in the respective media) rather than the real needs of the target readers (i.e. prospective MBA candidates).

Another problem is the ‘large-school bias’ - the results of traditional MBA surveys are usually biased in favour of the larger and more established schools.

Finally, a problem which plagues most MBA surveys is that the results are almost always unduly biased in favour of the larger and more established schools. This is usually inadvertent, but the effect is strong nevertheless. For example, researchers often incorporate the employer’s view by asking hiring managers which business school they rate the highest. If the hiring managers have an MBA themselves, then their responses will certainly be biased in favour of their own schools. (As an illustration, we asked respondents in our survey whether they would study at the same business school if they were to do it again. The vast majority were happy with their choice of school, with nearly three-quarters saying they would).1 Since hiring managers are more likely to have completed their MBA degrees at one of the larger schools (by simple probability), these schools will be disproportionately favoured. A more important contributing factor to the ‘large-school bias’ is the issue of reputation. An MBA graduate from one of the smaller schools noted: “They sell us short through their own rankings that are mainly perception driven." Many graduates from smaller schools constantly feel the need to justify their choice of school.

An important contributing factor to the large-school bias is the issue of reputation.

1.2 The problem with reputation
To illustrate the problem with reputation, we asked respondents the following question: “If you had to redo your MBA at a business school OTHER THAN YOUR OWN, which would you choose?”

This question eliminates the ‘own school’ bias discussed previously and gives a sense of the business schools that are most respected by the broader MBA population.2 The schools which were the most highly regarded by students and alumni of other
1

The South African business schools with the highest proportion of graduates and students saying they would definitely study at the same business school were GIBS (75%), Henley Business School (73%) and University of Stellenbosch Business School (72%). The average was 55% across all schools.

2

Some respondents selected their own school despite the instruction not to, and these data points were eliminated. The results were also adjusted for sample size by school and standardized (otherwise the schools with the largest sample sizes would be disadvantaged). Also, all schools were included in the selection list (including those which elected not to participate in the survey).

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schools were:      University of Cape Town Graduate School of Business (selected by 33% of respondents), GIBS (selected by 30% of respondents), Wits Business School (selected by 18% of respondents), University of Stellenbosch Business School (selected by 15% of respondents), and the other schools generated much lower percentages.

The selections here are based on respondents’ perceptions of reputation, and the results are clearly dominated by the largest and most established schools in South Africa (popularly referred to as the “Top 4”). This illustrates the risk that responses from third parties in MBA surveys are unduly clouded by the effect of reputation. Of course, the reputations of the largest schools may be richly deserved – these schools could well offer the best MBA programs. And if this is the case, then the superior quality of their MBA programs should be reflected in a greater positive impact on the lives of their graduates. Reputation is thus a second-order effect; impact is the most important thing to measure – hence the focus of this survey.

1.3 Why this survey is different
This survey addresses most of the problems with the traditional MBA surveys. It aims to comprehensively answer the questions that are most relevant to prospective students.
This survey addresses most of the problems associated with the traditional MBA surveys, including the distorting effects of reputation. It aims to comprehensively answer the questions that are most relevant to prospective students: “Should I do an MBA or not?” “If I do an MBA, what is the likely impact on my life – in all areas that are important to me (not only career and remuneration, but also things like my outlook on life, network, status, personal life, etc.)?” “And which schools are strongest in the areas that are most important to me?”

There is no overall ranking of business schools in this survey. Rather, we show which schools are best in different areas - based on the impact the MBA has had on the students and alumni of those schools, according to their own judgment. The best business school for a given individual might be very different to that for another individual, based on that person’s unique preferences and life priorities.

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2. What does the sample look like?
This report is based on a comprehensive survey of individuals who have either completed an MBA degree, or are currently studying towards one, at an accredited South African business school.

2.1 Which business schools are represented?
All accredited business schools in South Africa were invited to participate in the research:
Name of business school “Short” name used in the remainder of the report GIBS Henley Mancosa Milpark NMMU NWU Potch

All accredited business schools in South Africa were invited to participate.

Gordon Institute of Business Science Henley Business School Mancosa (Management College of Southern Africa) Milpark Business School Nelson Mandela Metropolitan University Business School North-West University Potchefstroom Business School

North-West University Graduate School of Business and NWU Mafikeng Government Leadership (Mafikeng) Regenesys Business School Regent Business School Rhodes Business School Tshwane University of Technology Business School UNISA Graduate School of Business Leadership University of Cape Town Graduate School of Business University of the Free State Business School University of Kwazulu-Natal Graduate School of Business University of Leadership Limpopo Turfloop Graduate School Regenesys Regent Rhodes TUT UNISA UCT UFS UKZN of TGSL USB WBS

University of Stellenbosch Business School Wits Business School

 

Two business schools (Regenesys and NWU Mafikeng) elected not to participate in the research. The following business schools ignored the initial research invitation and all subsequent email and telephone communication: UNISA, TGSL, and TUT. These schools are not represented in the research.

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2.2 How big is the sample?
Suitably large sample sizes were obtained for each of the participating business schools. In total, nearly 1,600 questionnaires were completed.
In order to obtain a statistically representative sample, it was decided to obtain a minimum sample size of:   100 respondents (graduates and current students) from each of the larger schools (GIBS, WBS, USB and UCT), and 50 respondents (graduates and current students) from the other schools.

In most cases, the minimum sample size was comfortably exceeded. The only exception was Rhodes Business School, for which only 30 completed questionnaires were obtained. However, given that the total historical alumni database for this school is less than 100 individuals, the relatively small sample of 30 respondents is sufficiently representative. In total, just over 10,000 MBA graduates and students were invited to participate in the survey, and 1,575 questionnaires were completed (with 1,800 respondents starting the survey). The sample was obtained from two different sources: 3) MBAconnect.net (http://www.mbaconnect.net), the largest independent social network for MBA students across South Africa (accounting for nearly a quarter of completed responses) 4) Directly from the respective business school databases (supplied by the business schools with appropriate permissions).

2.3 What is the demographic breakdown of the sample?
2.3.1 Current Students vs Graduates

There was a 1:2 split between current MBA students and graduates, with over half of graduates having completed their MBA within the last 5 years.

A third of the sample was made up of current MBA students, with graduates making up the balance. Not all questions were relevant to current students, and the wording and content of the questionnaire was adapted for them accordingly. Over half of the graduates completed their MBA degrees within the last 5 years, with good representation from those who completed it before then.

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How long ago did you finish the MBA?

16% 33% 14%
Current MBA student Within last 5 years 5-10 years ago More than 10 years ago

36%

Figure 2.1

Female respondents made up 25% of the sample.

2.3.2 Gender Only a quarter of respondents were female. This reflects the historical gender bias inherent in the MBA degree. While the gender ratios may be changing, the reality is still that the majority of MBA students are male. 2.3.3 Age Sample respondents were most likely to be aged between 30-39, with good representation from older ages (as shown in Figure 2.2 below). Note that there is a fairly high correlation (73%) between the age of the respondent and the length of time since they completed their MBA degree. This is not surprising, since we might expect that older people would have completed their MBA degree a longer time ago.
How old are you?

Respondents were most likely to be aged 30-39, with good representation from older ages.

5% 12%

9%
Under 30

30-39
40-49

29%

50-59

45%

60 or older

Figure 2.2

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The sample reflects the historical racial bias in the MBA student and graduate population in South Africa.

2.3.4 Population Group The population group breakdown again reflects the historical bias in those who elected to complete an MBA degree in South Africa. These ratios may be changing slowly in the current environment.

Which Population Group do you belong to? 0%
14% 5% 1% 26%
Black White Coloured Indian Asian

other

54%

Figure 2.3

Over half the respondents were senior or executive managers, and over 80% were in management positions.

2.3.5 Management Level The sample reflects a high level of management status - over half of the respondents were senior or executive managers, and over 80% were in management positions (see Figure 2.4). Of some concern is the fact that 4% of the sample (64 respondents) was currently unemployed. One might expect that an MBA degree would be a guarantee of employment, but this seems not be the case.3

3

Note that we can exclude retirement as being a major underlying cause, since only 22% of this group of unemployed respondents is above the age of 60. Also, the difference in proportions between current students and graduates is not significant, so we can also rule out full-time studies as a major underlying cause. One of these graduates commented: “Since completing my MBA 3 years ago, getting a salary job has been like a journey with no destination. Maybe it’s the global recession … but I know four of my MBA colleagues who have been struggling like me to get a job. Having invested a huge amount of money and time and three years down the line, you have not started to recoup a dime - honestly it was a wrong investment.”

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What is your Management Level?
Not currently employed

2% 25%

5%

4%

7% 6%

Non-management Junior Middle

23%

Senior Executive Non-executive director Not applicable

29%

Figure 2.4

More than half the respondents earned above R750,000 per annum.

2.3.6 Current Remuneration We collected data on the current remuneration of graduates who were employed by a corporate for at least 3 years after completing the MBA (610 respondents). The breakdown is shown in Figure 2.5 below. It is noteworthy that the remuneration of more than half the sample was above R750 000 per annum.

What is your current cost-to-company annual remuneration? (Graduates)

3% 25%

6%

13%

Less than R450 000 R450 001 - R750 000 R750 001 - R1 050 000

28%

R1 050 000 plus Not employed Would prefer not to answer

26%

Figure 2.5

The sample reflects a broad cross-section of industry.

2.3.7 Industry The sample reflects a broad cross-section of industry in South Africa. The largest industry representations are Finance/Financial Services/Accounting (19%), Manufacturing (8%), Healthcare/Medical/Pharmaceutical (8%), Management

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Consulting/Consulting (7%), and Education/Training (7%).4
Not currently working

What industry do you work in? 1% 2% 2% 2% 1% 1% 1% 1% 3% 4% 3% 1% 8% 7% 7% 8% 1%
Figure 2.6

Administration Architecture

E-Commerce

1%

Education / Training Electricity and Water Services

0%

0%

Energy (e.g. Oil, Gas and Petroleum)

7%

2% 3%

Engineering

2%

4% 1% 0%

Environmental Facilities Management Finance / Financial Services / Accounting FMCG/Retail Government Healthcare Services / Managed Healthcare / Medical / Pharmaceutical Hospitality / Catering Information Technology Internet

19%

Legal / Regulatory

Management Consulting / Consulting
Manufacturing Marketing Media / Journalism Mining Motor Operations Project Management Property Sales Supply Chain / Logistics Telecommunications Transportation Travel / Tourism

1% 1%

6%

4%

52% of respondents paid for the MBA themselves, while 28% had the MBA paid for by their companies.

2.3.8 Method of Payment Over a quarter of MBA studies were paid for by the individual’s company, while over half of the respondents had to foot the full bill for the MBA studies themselves. The remainder of students financed the MBA through a combination of these (16%) or through a bursary/scholarship (3%).

How did you pay for your MBA?

16% 28%

3%

My company paid for it

I paid for it myself

I got a bursary/scholarship for my MBA

52%

Combination of any of the above

Figure 2.7

4

The legend in Figure 2.6 represents a clockwise ordering of the industries around the pie chart (starting with the 4% of the sample who are not currently working, located near the 12 ‘o clock position).

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3. Is the MBA worth doing?
Respondents were asked whether, in retrospect, they had made the right choice in deciding to do an MBA. The response was overwhelmingly positive, with 86% of respondents stating they had definitely made the right choice. Only 1% of respondents regretted the decision to study their MBA. Some students were gushing in their views on the worth of the MBA: "I would change nothing, it was worth every minute." (MBA Graduate 2010, NWU Potch) "I wish I could do the whole course all over again. I'd learn even more." (MBA Graduate 2005, WBS)

MBA students and graduates overwhelmingly felt they had made the right choice to do an MBA.

However, most were a bit more balanced in their views, recognizing the hard work and sacrifices along the way: "The long hours of studying and preparing for your assignments is just every MBA student's pain. But it is for the good in the end. I will thank myself one day." (Current MBA Student, Milpark) "Workload and impact on my life was a price one has to pay. It was worth it." (MBA Graduate 2005, Henley) "It is not difficult but just very time consuming. It was a bit of a juggle to get family, work and study together. It’s definitely worth the effort in the end." (MBA Graduate 2010, Mancosa)

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Looking back, do you think you made the right choice to do the MBA?

ALL (n=1793)
100% 90% 80% 70% 60% 50% 40% 30% 20% 12% 10% 1% 0% Yes, definitely Yes, to some extent I don't know No, not really No, definitely not Not applicable 1% 0% 0% 86%

% of sample

AVERAGE RESPONSE

Figure 3.1

The percentage of respondents who felt they had definitely made the right choice to study an MBA increased with age and level of seniority within the organization.

The percentage of respondents who felt they had definitely made the right choice increases with age (from 77% for those aged under 30 to 91% for those aged 60 or older). This seems to imply that older students and graduates are more likely to recognize the benefits of their MBA degree – or perhaps they made a more considered decision to study the degree in the first place. It could also be that the memory of personal sacrifice during the MBA diminishes over time. The more senior the leadership position of the respondent, the more likely they were to report that they had definitely made the right choice to study an MBA (see Figure 3.2).5 Assuming that the MBA was a significant factor contributing to their career success, this is not a surprising result.

5

How to interpret Figure 3.2 (overleaf): The main question being asked here is whether people made the right choice to do the MBA, and we’re specifically interested in the percentage of people that answered ‘Yes, definitely’ to this question. The blue bar on the left shows that across the whole sample (in this case, 1,793 respondents,) exactly 86% answered ‘Yes, definitely’ to the question. We then decided to see how the percentage who answered ‘Yes, definitely’ differed according to a selected demographic sub-grouping. In this case, we selected management level as the demographic variable of interest. Each orange bar in Fig. 3.2 relates to a sub-group according th to management level. For example, consider the 5 orange bar from the left. There were 458 senior managers who answered the question about whether they made the right choice to do the MBA, and 87% of these responded ‘Yes, definitely’. Similarly, 74% of the 108 people in non management positions felt they definitely made the right choice to do the MBA. If there were no differences between the sub-groupings for the demographic variable selected, then all the orange bars would be the same as the blue bar (which represents the sample as a whole).

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Looking back, do you think you made the right choice to do the MBA? (the chart shows the % who answered: 'Yes, definitely')
100%
92% 90% 80% 70% 60% 68% 86% 74% 84%

85%

87%

88%

85%

% in sample 50%
40% 30% 20% 10% 0%

What is your management level?
Figure 3.2

Even those MBA graduates who are currently unemployed were very happy with their decision to study the MBA. Coloured and Black respondents were the happiest with their decision to study an MBA.

What is perhaps surprising is that as much as 68% of those who are currently unemployed are very happy with their decision to study an MBA. In fact, only 5% of this group are unhappy with their decision. Finally, there are significant differences between the various population groups. Coloured and Black respondents were the most likely to report that they had definitely made the right choice to study an MBA (93% and 91% respectively). The corresponding figure for White respondents was 83%. How do the business schools compare? The responses from all business schools were extremely positive, with at least 80% of respondents from every school stating they had definitely made the right choice to do the MBA.

Schools with the highest % of respondents saying they had definitely made the right choice to do an MBA (average =86%) NMMU Regent, UFS, Henley (95%) (92%)

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Do you want the good news or the bad news first?
Clearly, the MBA degree is worth doing. However, this doesn’t tell the whole story. We’ll see later that the MBA has a hugely positive impact on many areas of the lives of students and graduates. But it’s not all good news. There are significant sacrifices that students must make in the short term while studying the MBA degree. So the rest of the report is broken up into two sections: 3) THE GOOD NEWS – we start off by examining the areas of positive impact of the MBA degree 4) THE BAD NEWS – we then discuss the areas of negative impact, for a balanced overall view We’ll see as we go along that the good news far outweighs the bad news, but the short-term negative impact is something that certainly needs to be considered before deciding to embark on the journey of obtaining an MBA degree.

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Part 1: The Good News

“I felt that I had learnt something every day - either of subject matter or about myself” (MBA Graduate 2007, UCT) "I loved it. I met some great folk, I had a lot of fun and I grew a lot." (MBA Graduate 1993, WBS) “Expanded horizons, met a great bunch of people, gained wider perspective, opened door to new industry, met my wife!” (MBA Graduate 1992, UCT) "It was a life changing experience from the general outlook in life to the nuts and bolts of running a business/organisation as well as developing leadership skills the work environment. It also made me recognised and respected in the relationships that that I have created with my colleagues, friends and other business people." (Current MBA Student, Regent)

In Part 1, we’ll examine how the MBA:        met people’s expectations in the areas that were most important to them helped people advance in their careers strengthened people’s financial position in terms of growth in their salaries or businesses created a network which helped people in their careers, business and personal lives changed people’s outlook on life and their view of their own potential elevated people’s status in their businesses and communities helped people become more effective leaders in their personal lives

Should I do an MBA or not?

4. Why did people do an MBA? And did it meet their expectations in these areas?
We’ve seen that MBA students and graduates are overwhelmingly happy with their decision to study an MBA. We’ll now explore the main reasons why they decided to study the degree in the first place. Then we’ll assess the extent to which the MBA met their expectations in these areas.

4.1 Why did people decide to study an MBA?
Respondents were asked to indicate the main reasons why they decided to study an MBA. They were able to select more than one reason if applicable. The popular press (and indeed many of the business schools themselves) tends to focus on the extent to which the MBA degree contributes to one’s career advancement and financial remuneration. One might expect then that ‘Job Promotion’ and ‘Financial Motives’ would be the two main reasons why students and graduates originally decided to study an MBA. In fact, this is not the case at all. ‘Job Promotion’ is only the fourth most popular reason why people study an MBA (selected by only a third of respondents), and ‘Financial Motives’ is sixth on the list (selected by 30% of respondents). By far the main reason for studying an MBA degree is the attainment of business knowledge (selected by 72% of respondents). This is followed by ‘Confidence in a Business Setting’ (40%) and ‘Improvement in Soft Skills’ (38%). “Soft skills” in this context were described as ‘leadership ability, emotional intelligence, ability to work in teams, negotiating skills, presentation skills, communication skills, etc.’. As one graduate put it: “tangible skills that could actually be used in the course of a manager's work.” One could summarize it as: the main reason why people do an MBA is to be “effective in a business environment”. The full results across the whole sample are shown in Figure 4.1. Some respondents (86 in total, or 5% of the sample) cited other reasons for doing the MBA. These included furthering their education, being bored with the status quo, needing a personal challenge, distraction from issues in their personal life, and self-development. On the light-hearted side, one person did the MBA because he gets up early in the morning and was wasting time watching TV, another did the MBA to motivate his kids, and another even did it to stay out of the army!

Despite popular perceptions, career advancement and financial motives were not the main reasons people decided to study an MBA. By far, the main reason was the’ Attainment of Business Knowledge’, followed by ‘Confidence in a Business Setting’, and then ‘Improvement in Soft Skills’. In summary, people mainly do an MBA to ‘be more effective in a business environment’.

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What were your main reasons for doing an MBA?
ALL (n=1800)
% of sample
80% 70% 60% 50% 40% 40% 30% 20% 38% 34% 34% 30% 24% 22% 22% 72%

10%
0%

5%

Figure 4.1

4.2 Did the MBA meet people’s expectations in the areas that are important to them?
We saw in the previous section that the main reason for studying an MBA degree is the attainment of business knowledge (selected by 72% of respondents). So just how effective is the MBA degree in addressing this need?

Graduates and students believe that the MBA is very effective in giving them the business knowledge they were sought.

The results show that graduates and students believe that the MBA is very effective in giving them the business knowledge they were seeking. According to Figure 4.2, 81% of the total sample believed that the MBA definitely met their expectations in this area. One graduate even referred to it as “knowledge overflow”. Only 1% thought the MBA didn’t live up to their expectations relating to business knowledge.

“Finally I can understand how a business should ideally operate.” (MBA Graduate 2011, Milpark) "The MBA crystallises knowledge gained through experience as well as introducing a structured and formal method to the existing and new knowledge that you acquire." (MBA Graduate 2010, Regent) "[The MBA] explicitly lets you know that you don't know much and makes it a beautiful experience filling the ‘lack of knowledge’ gap." (Current MBA Student, UKZN)

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Do you think the MBA met/will meet your expectations relating to BUSINESS KNOWLEDGE?

ALL (n=1734)
90% 81%

80%
70% 60%

% of sample 50%
40% 30% 20% 10% 0% 0% Yes, definitely Yes, to some extent I don't know No, not really No, definitely not Not applicable 1% 0% 0% 18%

AVERAGE RESPONSE

Figure 4.2

Those who had indicated that business knowledge was one of the main reasons they did an MBA in the first place were more satisfied (83% answered ‘Yes, definitely’) than those for whom the attainment of business knowledge was not that important (73% answered ‘Yes, definitely’).

Students and graduates felt equally strongly about the value of the business knowledge they gained. Coloured and Black respondents were more likely than others to value the business knowledge gained during the MBA.

Interestingly, students and graduates both answered this in exactly the same way (81%), even though current students haven’t yet been exposed to all the new knowledge nor had the opportunity to assimilate it properly. There were also no differences6 according to the length of time since graduation. The only demographic differences were along racial lines – 92% of Coloured people strongly believed their expectations relating to business knowledge were met, with 88% of Black people feeling the same way (the corresponding figure for White respondents was 76%).

4.2.1

What about the other reasons for studying an MBA?

We examined the extent to which expectations were met for all the other main reasons to study an MBA. In order to make useful comparisons, it is helpful to summarize the results of a

6

When we say there were “no differences” between two or more groups of respondents, we mean it in the statistical sense. In other words, the actual percentages may have been different, but there is no basis for saying this was due to anything other than chance or random fluctuations.

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chart such as Figure 4.2 above into a single summary measure. This can be achieved by assigning a different score to each answer option, as follows:
Outcome Yes, definitely Yes, to some extent I don’t know No, not really No, definitely not Not applicable Assigned Score 10 7.5 5 2.5 0 Ignored

We can then calculate the average score across all the outcomes – in the case of Figure 4.2 it works out to 9.5. One way to interpret this is that on a scale of 0 to 10, with 0 representing “No, definitely not” and 10 representing “Yes, definitely”, the average score across the sample is 9.5. So this would be somewhere between “Yes, to some extent” and “Yes, definitely”, but much closer to the latter. This is shown in the grey bar near the bottom of Figure 4.2, where the blue circle represents the average response across the sample. With this calculation methodology, we are able to determine a single score for the average response across the sample to the question “Do you think the MBA met / will meet your expectations relating to reason X?” These average responses are plotted in orange in Figure 4.3 below, and reflect the effectiveness of the business schools in meeting these expectations. The green bars indicate the percentage of respondents that selected the given criterion as a main reason for doing an MBA – this reflects the relative importance of each of the criteria.
10 EFFECTIVENESS: Average response to the question about whether the MBA met expectations in this area
72%
Yes, to some extent Yes, definitely

IMPORTANCE: % of the sample saying this is a main reason for doing the MBA

40%

38% 34% 34%

I don't know

30%
24% 22% 22%

No, not really

0

No, definitely not

Figure 4.3

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Business knowledge was not only the most popular reason for doing an MBA, but also the one for which MBA graduates and students were most satisfied. Respondents were particularly surprised at the usefulness and effectiveness of the soft skills they gained during the MBA.

Figure 4.3 shows that business knowledge was not only the most popular reason for doing an MBA, but also the one for which MBA graduates and students were most satisfied. In fact, the three most popular reasons for doing an MBA were also the three for which the business schools were most effective in meeting expectations.

MBA students and graduates were particularly surprised at the usefulness and effectiveness of the soft skills they gained during the MBA: "I hadn’t banked on learning all the soft skills like systems thinking, ethics and personal development. I was of the mind that an MBA would be a hard-nosed business course. So I was preparing myself to learn a lot of technical information. As it turned out, my general business knowledge was ok and I learned a lot more on the softer issues - which has had a positive impact on my personal and business life." (MBA Graduate 2008, UCT) "[What I liked most about the MBA is] the insight into how "soft skills" become the most important skills in becoming successful" (MBA Graduate 2001, USB) These skills were usually a very useful by-product of the MBA process, rather than content taught in the coursework: “Trying to negotiate tricky situations inspired me to change my approach and taught me the skill of listening to other peoples’ viewpoints and to lead by example.” (MBA Graduate 2011, Milpark) "The MBA taught teamwork and how little I actually know." (MBA Graduate 1996, UCT) "It gave me an opportunity to deal with diversity in the true sense of the word." (MBA Graduate 2008, USB) “My MBA also enabled me to negotiate my finance with my bank in an assertive manner. The power and skills of reflection and coaching is another learning element I came to like about my MBA." (MBA Graduate, USB)

For the attainment of business knowledge, all schools are very effective in meeting the expectations of their respective students and graduates. There is greater variation between the schools in terms of other reasons for doing an MBA.

We also considered the effectiveness of each individual school in meeting the expectations of their respective students and graduates. Figure 4.4 below is similar to Figure 4.3 above, except that the orange line in Figure 4.3 (which represents the effectiveness of all schools taken as a group) has now been replaced with two separate lines – which show the highest and lowest average response for the schools considered separately. The area between the two blue lines represents the range of average responses across the business schools. For business knowledge (the main reason people do an MBA), all schools are very effective in meeting the expectations of their respective students and graduates. In fact, there is very little to choose between the schools here (the two blue lines are very close together). There is greater variation between the schools for other reasons (where the two blue lines are further apart).
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IMPORTANCE: % of the sample saying this is a main reason for doing the MBA EFFECTIVENESS: Highest Average Response across Business Schools EFFECTIVENESS: Lowest Average Response across Business Schools 72%

10

Yes, definitely

Yes, to some extent

Figure 4.4

40%

38% 34% 34% 30%

I don't know

EFFECTIVENESS: Average response to the question about whether the MBA met expectations in this area
24% 22% 22% No, not really

0
Business knowledge Confidence in Improvement a business in soft skills setting Change of career Job promotion Financial motives Start or grow your own business Networking Global mobility

No, definitely not

How do the business schools compare?
Schools for which expectations in the given area were met to the greatest extent (on a scale of 0-10, with 0 representing ‘Expectations definitely not met’ and 10 representing ‘Expectations definitely met) Business Knowledge (average = 9.5) Henley, Rhodes Regent (9.7) (9.6) Confidence in a Business Improvement in Soft Skills Setting (average = 8.8) (average = 9.0) GIBS, Henley, (9.3) NWU Potch Regent NMMU Rhodes Change in Career (average = 6.7) UCT Henley NWU Potch Start/Grow Business (average = 6.8) Regent UCT Henley (7.8) (7.6) (7.1) GIBS (8.4) Henley, UCT Mancosa (6.7) (6.5) (8.0) (7.7) (7.5) your Job Promotion (average = 6.6) UCT Henley WBS own Networking (average = 7.4) (7.4) (7.3) (7.0) (9.6) (9.5) (9.3)

Financial Motives (average = 6.8) Henley UCT Rhodes (7.5) (7.3) (7.2)

Globabl Mobility (average = 6.1)

Regent, UKZN (7.8)

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5. How did the MBA impact people’s careers?
Career advancement is traditionally seen as one of the main reasons for doing an MBA, and so it is important to examine the impact of the MBA on people’s careers.

5.1 For those who got a promotion and/or greater responsibility after the MBA, to what extent did the MBA contribute to this?

Career advancement is traditionally seen as one of the main reasons for doing an MBA.

Over three quarters of respondents got a promotion and / or greater responsibility after the MBA. However, this shouldn’t be taken as an indication of the success of the MBA in causing career advancement (which is a mistake often made in traditional MBA surveys, as pointed out in an earlier section). This is because these respondents may have been promoted even if they hadn’t done an MBA. In any event, this percentage would be unduly influenced by time elapsed since graduation (for example, it would be surprising if someone hadn’t been promoted in the last 10 years, even if they didn’t have an MBA). Finally, this question wouldn’t be relevant to certain segments (e.g. people who run their own businesses or are unemployed). A better way to isolate the impact of the MBA is to focus on that sub-sample of respondents who did advance their careers (through promotion or greater responsibility), and then ask them to what extent their MBA contributed to this. According to the results (see Figure 5.1), that sub-sample of respondents comprised 77% (i.e.42% + 30% + 5%) of the entire sample. Of the sub-sample, 55% (calculated as 42% divided by 77%) said the MBA was a huge contributing factor to their career advancement, and a further 39% (30% divided by 77%) said it was somewhat of a contributing factor. Only 6% said the MBA did not contribute to their career advancement. This can be converted to a score of 7.4 on a scale of 0 to 10 (with 0 representing ‘The MBA was NOT a contributing factor’ and 10 representing ‘The MBA was a BIG contributing factor). The positive impact of the MBA on career advancement is reflected in the comments below: "It gave me business skills for life - good for promotion and career development." (Current MBA Student, Regent) “I now feel confident in running organization of any sort being, parastatals, public or private. This course really impacted on my life in that now I feel that the 28 years I spent in my career has gone down the drain. I honestly feel that had I done this course earlier I could I have reached at the top of the ladder in my organization.” (Current MBA Student, Regent) “I'm already getting head hunted due to having done the MBA.” (MBA Graduate, Regent)

77% of respondents got a promotion and/or greater responsibility after the MBA, though this shouldn’t be taken as an indication of the success of the MBA in causing career advancement. Rather, we should focus on that sub-sample who had advanced their careers and then ask to what extent their MBA contributed to this. On a scale of 0-10 (with 0 being ‘Not a contributing factor’ and 10 being ‘A big contributing factor’, the average score was 7.4.

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If you got a promotion and/or greater responsibility after the MBA, to what extent do you think the MBA contributed to this?

ALL (n=1686)
45% 40% 35% 30% 42%

30%

% of sample 25%
20% 15% 10% 5% 0% The MBA was a big contributing factor The MBA was somewhat of a contributing factor The MBA was not a contributing factor 5%

23%

Not applicable

AVERAGE RESPONSE

Figure 5.1

There was a small minority who felt somewhat disillusioned about their lack of career advancement.

There was a small minority who felt somewhat disillusioned about their lack of career advancement. Perhaps this reflects the view held by some that the MBA certainly increases the marketability of a job candidate, but is not a guarantee of movement up the corporate ladder. “The expectations that the general corporations and "public" creates is that there is high demand for MBA graduates … BUT that proved to be not the case thus far.” (MBA Graduate 2011, Mancosa) “My MBA got me a ‘nice' job … but it cannot counter affirmative action.” (MBA Graduate, USB)

How do the business schools compare? Some business schools were more effective than others in advancing careers of graduates, with scores ranging between 6.6 and 8.7 on the 0-10 scale (with an average of 7.4). Schools scoring the highest were:

Schools with the highest scores in career advancement (average = 7.4) NMMU Regent UCT (8.7) (8.4) (8.0)

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5.2 Did the MBA make people more effective in their jobs?

The MBA is very effective in improving job effectiveness. Over two-thirds of respondents felt that the MBA definitely made them more effective in their jobs. Only 3% said that it didn’t.
Has the MBA made you more effective in your job?

ALL (n=1728)
80%

70%

67%

60%

50%

% of sample
40%

30%

27%

20%

10%

1%
0% Yes, definitely Yes, to some extent I don't know

3% No, not really

0% No, definitely not

1%
Not applicable

AVERAGE RESPONSE

Figure 5.2

The MBA is very effective in improving job effectiveness. 67% of respondents felt that the MBA definitely made them more effective in their jobs, with only 3% saying that it didn’t.

"I am able to listen, remain objective, open-minded and better at making judgements. I am able to convince and lead in many efforts to make my workplace more than better - but outstanding. I honestly don't think I would do the same before the MBA. I am able to say No or Yes - and help management make much better decisions" (MBA Graduate 2010, UFS)

"I have transformed as an individual and feel better equipped to make a difference and unique contribution to my career and the company I work for." (Current MBA Student, NMMU) "I liked the fact that the programme is quite diverse. It honed my skills in many areas of an organisation, such as operations management, marketing, information systems, business ethics etc. In a way I know a little bit of everything. It has truly broadened my mind-set and I feel confident enough that I can work at any organisation and make a valuable impact from my experiences and knowledge I gained." (MBA Graduate 2011, Regent)

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"I graduated MBA when I was 40. I had 17 years of fairly patchy work experience, with the last three years as a vaguely successful solo operator. I did the MBA because I realised I had to switch lanes - I was a good salesman but wanted to change gear. I learned three things at business school. There were some things that I was doing that were right, so I continued doing them. There were some things that I was doing that were wrong, so I stopped doing them. There were some things that I was not doing that that I should have been doing, so I started doing them. It's as simple as that." (MBA Graduate 1993, WBS)

How do the business schools compare? All business schools were effective in positively impacting job effectiveness, with scores ranging between 8.6 and 9.4 on the 0-10 scale (with an average of 9.0). Schools scoring the highest were:

Schools with the highest scores in increasing job effectiveness (average = 9.0) Henley Regent, UKZN (9.4) (9.2)

5.3 Did the MBA make people more effective leaders in their jobs?

Over 90% of respondents believed the MBA made them more effective leaders in their jobs. This stemmed mainly from 3 sources: the leadership skills taught during the MBA course, the skills learned as a result of the group dynamic in the classroom, and improving the level of self-awareness of the students.

Over 90% of respondents believed the MBA made them more effective leaders in their jobs (see Figure 5.3). The improvement in leadership effectiveness stemmed from three main sources. Firstly, the MBA equipped people with appropriate leadership skills: “I am now equipped with a whole raft of tools across various disciplines that make me a more effective manager and leader. Having those tools (or at least an understanding of where and how to get more information on a particular subject) has given me the confidence to believe that pretty much anything is possible.” (MBA Graduate 2003, UCT) "[What I liked most about the MBA was] attaining strategic skills in a number of functional areas of management. It creates a well-rounded business executive" (MBA Graduate 2004, Mancosa)

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Has it helped you become a more effective leader in your career?

ALL (n=1724)
70%

60%

59%

50%

% of sample 40%
33% 30%

20%

10% 3% 0% Yes, definitely Yes, to some extent I don't know No, not really No, definitely not Not applicable 4% 0% 1%

AVERAGE RESPONSE

Figure 5.3

Secondly, the group dynamic in the MBA classroom was very often a greater teacher of leadership skills than the course content itself: “The MBA helped me to debate matters from an academic level and to be tolerant of others and appreciate and accept different view-points. I also enjoyed being given the ability to lead the various syndicate groups which taught me a lot about leading people at that level.” (Current MBA Student, Milpark) “[What I liked most was] the 'boiling pot' environment, all having to co-operate with each other while having to compete at the same time.” (MBA Graduate 1976, UCT) Finally, an important part of becoming a better leader is improving one’s level of self-awareness. Many people felt that the MBA contributed positively to this: “[What I liked most was] the journey to self -discovery. I discovered what I am capable of and what my strengths are.” (Current MBA Student, Milpark) “I got to understand that as a person who wants to lead, I have to have certain characteristics of transformational, effective and ethical leadership.” (Current MBA Student, Milpark) “I learnt a huge amount about working with other people, and my own strengths and weaknesses.” (MBA Graduate 2000, UCT)

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How do the business schools compare? All business schools were effective in making people more effective as leaders, with scores ranging between 8.3 and 9.1 on the 0-10 scale (with an average of 8.7). Schools scoring the highest were:

Schools with the highest scores in leadership effectiveness (average = 8.7) NMMU Mancosa USB, Milpark, Regent, UFS, UKZN (9.1) (9.0) (8.9)

5.4 Did the MBA improve decision-making in the work environment?
Over 95% of respondents felt that the MBA improved their decision-making in the work environment.

Over 95% of respondents felt that the MBA improved their decision-making in the work environment.

Has it improved the effectiveness of your decision-making in a work environment?

ALL (n=1725)
80% 71% 70%

60%

50%

% of sample
40%

30%
24% 20%

10% 1% 0% Yes, definitely Yes, to some extent I don't know No, not really No, definitely not Not applicable 3% 0% 1%

AVERAGE RESPONSE

Figure 5.4

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“I can now make an informed view and decision rather than emotional decision like in the past.” (Current MBA Student, Milpark) "Promotion of intelligent thinking, out of the box thinking, calculated decision making … when dealing with business matters." (Current MBA Student, Regent)

"The learnings were immediately applicable to my work context and allowed me to improve the level of my decision making." (Current MBA Student, UCT)

How do the business schools compare? All business schools were effective in improving decision-making in the work environment, with scores ranging between 8.8 and 9.4 on the 0-10 scale (with an average of 9.1). Schools scoring the highest were:

Schools with the highest scores in effective decision-making (average = 9.1) UFS, Mancosa USB, Regent (9.4) (9.3)

5.5 Did the MBA career/business?

give

people

more

credibility

in

their

Nearly 90% of respondents felt the MBA gave them more credibility in their careers or businesses.

Nearly 90% of respondents felt the MBA gave them more credibility in their careers or businesses. "It gave me a bigger voice in business and improved my confidence in engaging at different levels within the organization. It allowed me to improve my research skills and provide answers to complex problems. It introduced me to critical areas of functional areas and allowed me to stimulate dialog into those areas." (Current MBA Student, Mancosa) "It gave me self-belief and enabled me to overcome a business inferiority complex as my B. Com was done at a non- mainstream university at the time." (MBA Graduate 1975, UCT) "[What I liked most about the MBA was] learning and being able to take a place at the boardroom table." (MBA Graduate 1998, Henley)

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Has your MBA given you more credibility in your career/business?

ALL (n=1678)
70% 61% 60%

50%

% of sample 40%
28%

30%

20%

10% 5% 0% Yes, definitely Yes, to some extent I don't know No, not really No, definitely not Not applicable 5% 1% 1%

AVERAGE RESPONSE

Figure 5.5

The MBA not only elevated the perceptions others had of the graduate, but also the graduate’s ability to interact with different levels of businesspeople.

The MBA not only elevated the perceptions others had of the graduate, but also the graduate’s ability to interact with different levels of businesspeople: "[What I liked most about the MBA was]… being able to understand what top management talks about" (MBA Graduate 2011, Mancosa)

“I developed the ability to communicate with specialists in other fields i.e. finance, tax, personnel, marketing, etc.” (MBA Graduate 1976, UCT) "Gave me an insight into most aspects of business - sufficient so I could hold my own when confronted with those disciplines in real life." (MBA Graduate 1985, UCT)

This extended beyond the knowledge gained in the MBA classroom: “I started enjoying reading business newspapers, journals and books, which increased my knowledge and am able to hold a conversation with different types of people.” (Current MBA Student, Milpark)

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How do the business schools compare? All business schools were effective in giving people credibility in their career or business, with scores ranging between 8.3 and 9.0 on the 0-10 scale (with an average of 8.6). Schools scoring the highest were:

Schools with the highest scores in giving credibility in business (average = 8.6) Regent UFS, NMMU (9.0) (8.9)

5.6 For corporate employees who changed industries after the MBA, to what extent did the MBA contribute to this?

As much as 56% of respondents changed industries after the MBA. Of these 64% attested that the MBA was a big contributing factor to the change.
As a corporate employee, if you changed industries after the MBA , to what extent do you think the MBA contributed to this?

ALL (n=1627)
50% 45% 40% 36% 35% 30% 25% 20% 16% 15% 10% 5% 0% The MBA was a big contributing factor The MBA was somewhat of a contributing factor The MBA was not a contributing factor Not applicable 4% 44%

% of sample

AVERAGE RESPONSE

Figure 5.6

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As much as 56% of respondents changed industries after the MBA. Of these 64% attested that the MBA was a big contributing factor to the change.

“It was a life changing experience for me and launched my career on a new path.” (MBA Graduate 1994, UCT) "I was already in my late forties when I did the MBA. My motivation was to enhance my management skills and to change careers. But I got way more out of the programme than I could ever anticipated. I did switch careers and was appointed in my current position due to my MBA." (MBA Graduate 2008, UFS)

Even if they didn’t actually change industries, a number of MBA students and graduates mentioned that the MBA gave them the opportunity to re-evaluate their career. "[I liked] the time out to re-evaluate my career mid-stream" (MBA Graduate 2006, UCT) "[It gave me a] fresh look at things. I worked for 6 years at an international corporate and been thinking like the company taught me to. The MBA gave me a fresher and wider look at business. I have a financial background and the MBA gave a better look at the total business cycle, as well as emphasising the importance of creativity." (Current MBA Student, UCT)

How do the business schools compare? Schools scoring the highest on the impact of the MBA in changing industries were:

Schools with the highest scores for impact of the MBA in changing industries (average = 7.9) Regent UCT UFS (8.9) (8.6) (8.3)

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5.7 Did the MBA make people more internationally mobile?

Schools were somewhat less effective in helping graduates become more internationally mobile, with an average score of 6.8 (with 10 representing ‘Yes, definitely’ and 0 representing ‘No, definitely not’).
Do you think your MBA has made you more internationally mobile?

ALL (n=1717)
35%

30%

30% 28%

25% 21%

% of sample 20%

15% 12% 10% 6% 5% 3%

0% Yes, definitely Yes, to some extent I don't know No, not really No, definitely not Not applicable

AVERAGE RESPONSE

Figure 5.7

Schools were somewhat less effective in helping graduates become more internationally mobile, with an average score of 6.8 (with 10 representing ‘Yes, definitely’ and 0 representing ‘No, definitely not’).

“… it did breed a confidence that enabled me to go international, which at that time in SA's history was important.” (MBA Graduate 1986, UCT)

How do the business schools compare? Across the business schools, scores for international mobility ranged between 5.9 and 7.8 (with an average of 6.8). Schools scoring the highest were:

Schools with the highest scores for international mobility (average = 6.8) Henley GIBS UCT (7.8) (7.4) (7.3)

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5.8 For those who started their own business after the MBA, to what extent did the MBA contribute to this decision?

52% of those who started their own business after the MBA said the MBA was a big contributing factor to this decision.

Remarkably, 42% of the graduate respondents reported that they had started their own business after the MBA. Of these, 52% (calculated as 22% divided by 42%) said the MBA was a big contributing factor to their decision to start their own business, and a further 31% (=13% / 42%) said it was somewhat of a contributing factor. Only 17% said the MBA did not contribute to their decision to start their own business. This can be converted to a score of 6.9 on a scale of 0 to 10 (with 0 representing ‘The MBA was NOT a contributing factor’ and 10 representing ‘The MBA was a BIG contributing factor).

If you started your own business after the MBA, to what extent do you think the MBA contributed to this decision?

ALL (n=1085)
70%

60%

58%

50%

% of sample 40%

30% 22% 20%

13%
10% 7%

0% The MBA was a big contributing factor The MBA was somewhat of a contributing factor The MBA was not a contributing factor Not applicable

AVERAGE RESPONSE

Figure 5.8

"It opened up the world and gave me the confidence I needed to start my own business." (MBA Graduate 2010, NWU Potch) "First and foremost, the MBA was an investment in myself! I have grown on many levels and the studies gave me the confidence to start my own consultancy. " (Current MBA Student, USB)

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Not all respondents were enthusiastic about their ability to start their own businesses. Many felt the MBA is geared more towards the corporate world than the world of entrepreneurship.

Some respondents were less enthusiastic about their ability to start their own business: "It did not change my perception of business, as I thought it would give me the necessary skills to pursue my own successful business, but it did not!" (MBA Graduate 2005, UKZN) "Today big companies are down scaling. I was retrenched, the MBA helped me very little to start a business from scratch" (MBA Graduate 1999) "The expectations (salary) that are created during the MBA that when you finish you will be to just walk into any executive position or start any business, are not good as the MBA just takes you through high level concepts and is not long enough to take you through the intricacies of being successful at running your own business for example" (MBA Graduate 2005, UCT)

A relatively large number of students felt that the MBA is geared more towards the corporate world and is much less relevant for entrepreneurs: "I would have more on entrepreneurship in the formal SME sector in South Africa. Entrepreneurial strategy, while based on the fundamentals of strategic planning for large companies, is fundamentally different. It is also necessary that MBA students understand this as they are the potential entrepreneurs of tomorrow." (Current MBA Student, Milpark) "Too theoretical, not enough practical especially for entrepreneurs, most of the theory doesn't apply in real life or to non-corporate." (MBA Graduate 2010, GIBS)

"Increase the focus on Entrepreneurship in order to create jobs rather than job careers." (Current MBA Student, Milpark)

How do the business schools compare? Scores for the influence of the MBA in people’s decision to start their own business ranged between 6.6 and 8.8 (with an average of 6.9). Schools scoring the highest were:

Schools with the highest scores for influence of the MBA in starting your own business (average = 6.9) Regent UFS Milpark (8.8) (8.5) (7.1)

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6. What was the Financial Impact of the MBA?
In the survey, we allowed respondents to give open-ended comments about what they liked most about the MBA. Surprisingly, not a single one spoke about the positive financial impact it had on their lives – even though this was the main reason that nearly 30% of respondents initially enrolled for the MBA. Something happened during the course of their studies to change their focus completely, as illustrated in the following comment: “ I started the MBA for selfish reasons, to get a better job and be better paid, and ended up finishing it with the sole goal of learning and growing as much as I could. The MBA really helped me understand myself so much better and allowed me to assess where I really want to go." (MBA Graduate 2011, USB) Nevertheless, it is important to assess the financial impact of the MBA.

When asked what they liked most about the MBA, not a single respondent spoke about the positive financial impact of the MBA. Their focus shifted to other areas during the course of their studies. People felt very strongly that the MBA was worth the money that they paid for it.

6.1 Is the MBA worth what people paid for it?
The MBA is a very expensive degree. It can have a really positive impact, and so the question is whether or not this impact is worth the money paid. Respondents answered overwhelmingly in the affirmative, as shown in Figure 6.1 below. Nearly three-quarters of respondents definitely thought the MBA is worth it from a financial point of view.
Do you think your MBA was /will be worth what you paid for it?

ALL (n=1691)
80% 72% 70%

60%

50%

% of sample
40%

30% 20%

20%

10%
4% 0% Yes, definitely Yes, to some extent I don't know No, not really No, definitely not Not applicable 3% 1% 1%

AVERAGE RESPONSE

Figure 6.1

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Most of those who thought the MBA was not worth it from a financial point of view were still glad they did it.

One might argue that this question is very similar to a previous one: “Do you think you made the right choice to do the MBA?”. This is true, though there is a subtle difference. The former question focuses only on the financial cost of the MBA, while the latter looks at the overall decision more holistically. Indeed, 25% of respondents gave different answers to the two questions. Of particular interest was the group of people that thought the MBA was not worth it from a financial point of view (58 individuals). Of these, most (72%) were still glad they did the MBA.

6.1.1

Do responses to this question differ by demographics?

Graduates were more convinced of the financial value of the MBA than current students. As people get older, so they think the financial return on their MBA is higher.

Current students are somewhat less convinced of the financial worth of the MBA, though not hugely so – 74% of MBA graduates answered ‘Yes, definitely’ compared to 69% of current students. The differences across ages are much more significant. As people get older, so they think the financial return on their MBA is higher (see Figure 6.2 below). Similarly, as the time after completion of the MBA increases, so the perception of financial return goes up as well (see Figure 6.3). It seems that the value of the MBA degree continues to be felt – and even strengthens - as the years pass.

Do you think your MBA was /will be worth what you paid for it? (the chart shows the % who answered: 'Yes, definitely')

100% 90% 80% 72% 70% 60% 58% 71% 78% 73% 87%

% in sample 50%
40% 30% 20% 10% 0% ALL (n=1691) Under 30 (n=146) 30-39 (n=721) 40-49 (n=465) 50-59 (n=196) 60 or older (n=78)

What is your current age?
Figure 6.2

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Do you think your MBA was /will be worth what you paid for it? (the chart shows the % who answered: 'Yes, definitely')

90% 80% 72% 70% 60% 50% 69% 68% 79% 81%

% in sample
40% 30% 20%

10%
0% ALL (n=1691) Current MBA student (n=549) Within last 5 years (n=579) 5-10 years ago (n=230) More than 10 years ago (n=269)

How long ago did you finish your MBA?
Figure 6.3

The higher the level of management, the greater the percentage of respondents who believe the MBA was definitely worth what they paid for it. Black respondents felt particularly strongly about the financial return of the MBA, while Indian respondents were the least convinced of the population groups.

Also, the higher the level of management, the greater the percentage of respondents who believe the MBA was definitely worth what they paid for it. The percentage increases from 53% for non-management to 81% for executive management. This might be due to the impact of the MBA in advancing their careers up the management ladder, or to the lower significance of the cost to the more senior (and hence more highly remunerated) individuals. There is a similar trend for the size of the person’s current salary. Black respondents felt particularly strongly about the financial return of the MBA (80% answered ‘Yes, definitely’), while Indian respondents were the least convinced of the population groups (66% answered ‘Yes, definitely’).

How do the business schools compare? The percentage of people who though the MBA was definitely what they paid ranged between 65% and 80% across business schools (with an average of 72%). Schools with the highest percentages were:

Schools with the highest percentage of respondents saying the MBA was definitely worth what they paid (average = 72%) UCT, UFS Regent (80%) (79%)

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6.2 If the MBA is worth it, then how long does it take for the return to be realised?
For those who believed that the MBA was worth what they paid for it, we asked how long they thought the payback period was for the return to be realised. This figure worked out to approximately 1.8 years, on average. Nearly a quarter felt the MBA had paid for itself immediately after graduation, while only 5% felt it takes longer than 5 years for the return to be realised. "[I liked] the ability to learn and work at the same time as all assignments were focused on a problem at work. So I got ROI from day 1 of starting my MBA." (MBA Graduate 2011, Henley)

For those who believed that the MBA is worth what they paid for it, the average payback period for the return to be realised was approximately 1.8 years.

Given that the MBA was worth it, how long did it take for that return to be realised?

ALL (n=1053)
40% 37% 35%

30%

25%

24% 20%

% of sample
20%

15%

14%

10% 5%

5%

0% Immediately after graduation Less than 1 year after graduation Between 1 and 3 years after Between 3 and 5 years after graduation graduation More than 5 years after graduation

AVERAGE RESPONSE

Figure 6.4

If the non-financial returns of the MBA were to be considered, it is likely that the payback period would be significantly shorter.

If the non-financial returns of the MBA were to be considered, it is likely that the payback period would be significantly shorter. For example: "Empowerment and credibility. These rewards were enjoyed right from the start of my enrolment and experienced throughout. Completion of the MBA was a formality." (MBA Graduate 2005, WBS)

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How do the business schools compare? Schools with the shortest average payback periods amongst those who thought the MBA was worth it, were (average 1.8 years):

Schools with the shortest average payback period amongst those who thought the MBA was worth it (average = 1.8 years) Regent UFS, Rhodes (Less than 1 year) (1.1 years)

An important factor affecting the results of the comparison between schools is the cost of the MBA itself. All other things being equal, the more expensive the MBA degree, the longer the payback period is likely to be.

6.3 What impact does the MBA have on g raduates’ salary growth?
The impact of the MBA on salary growth has been examined in a number of other surveys. However, there are some serious flaws in the calculation methods typically used. Problems typically include heterogeneity of the comparison groups, and no allowance for the time value of money or the effects of wage inflation.
One of the promises of the MBA degree is that it leads to higher earnings growth after the degree is completed. The impact of the MBA on salary has been examined in a number of surveys (including the main South African MBA surveys), usually with really favourable conclusions about the high salaries and growth rates associated with the MBA degree. However, the calculation methodologies employed in these surveys are typically flawed. For example, some studies compare the average salary of a group of students who are about to study an MBA with the average salary of a group of MBA graduates. The main problem with this approach is heterogeneity of the comparison groups – differences in variables such as age and work experience can have a big distorting effect. For example, MBA graduates tend to be older than new students and graduates tend to have more work experience than students (and hence would be expected to earn higher salaries). Some studies compare individuals’ salaries at the start of the MBA against current salary or salary for the first post-MBA job. This is problematic since there is no allowance for the time value of money and the effects of wage inflation – we would naturally expect salaries to increase over time, regardless of whether or not the individual has an MBA. Some studies simply show the number of MBA graduates earning within certain salary bands as proof that those with an MBA earn high salaries. Again, this does nothing to prove the worth of the MBA but rather reflects the earning ability of the group chosen. For example, selecting a sample of older graduates or graduates in higher-earning professions or industries will bias the results upwards. Selecting a similar group of professionals without an MBA will likely show a similar salary distribution. Often, a combination of these approaches is employed, which magnifies the problems associated with the interpretation of the results.

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6.3.1

A better approach

We’ve employed a more accurate approach to calculating the impact of the MBA on future salary growth, avoiding the problems associated with the usual calculation methods.

In order to avoid the problems associated with the usual calculation methodologies, we’ve employed a different approach based on the following main principles: o Principle 1 Percentage growth in salary is a more useful measure than the actual size of the salaries, since this avoids distortions due to the time value of money and wage inflation Principle 2 The unit of comparison should be the individual rather than a group of students or graduates. In other words, we measure the increase in salary growth before and after the MBA, for the same individual. Crucially, this avoids the problem of heterogeneity in the different comparison groups.

o

To assess the impact over a suitably long period of time, we started off by only selecting those MBA graduates who were working for a corporate for the full duration of their MBA studies and for a period of 3 years after completing the MBA. For each of the sample respondents, we asked for their total cost-to-company annual remuneration (in suitable ranges) immediately before starting the MBA and also upon graduating from the MBA. Combining this data with the date they started and completed the MBA enabled us to calculate the rate of their salary growth during the period they studied the MBA. We then asked respondents to give their current total cost-to-company annual remuneration. After determining how long ago they completed the MBA, we were able to calculate the rate of their salary growth over the period from when they completed the MBA until the present time. At this point, we have two pieces of data for each sample respondent: 1) The average annualized salary growth rate pre-MBA 2) The average annualized salary growth rate post-MBA These two measures can be directly compared against each other in order to assess the impact of the MBA on salary growth for that individual. The main advantage of this comparison is that it avoids the distortions which plague the other surveys (mentioned above). We only used sample data for which the respondent qualified according to the procedure described above7 and for which we had a full record of data in order to make the calculations.8 The final sample for this calculation consisted of 347 full data records.

7

There were some respondents who had graduated less than three years ago, and these were included in the results. We also excluded those who had completed the MBA more than 10 years ago as this data is likely to be much less reliable (though the numbers were small here anyway). 8 A small percentage (6%) of respondents preferred not to provide salary data.

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6.3.2

So what impact does the MBA have on salary growth?

Before looking at the results, it is necessary to first consider the outliers: o A very small percentage of respondents - approximately 1% - actually experienced a decrease in salary over one of the two periods. This might happen, for example, if someone changed industries after completing the MBA. This was considered an anomaly, and so these cases were excluded from the analysis. Four respondents (again approximately 1% of the sample) enjoyed a huge increase in salary – at least a doubling, or 100% increase - within one year of completing the MBA. This is very unlikely to be due to the impact of the MBA alone, and so these four sample points were also excluded from the analysis.

o

On average, the annual rate of salary growth during the period of MBA study was 11% per annum. On average, the annual rate of salary growth after the MBA was 16.5% per annum. We can draw the conclusion that the MBA adds an extra 5.5% to expected salary growth post-MBA.

Three observations are in order:

On average, the MBA adds an extra 5.5% per annum to expected salary growth post-MBA. The average annual rate of salary growth after the MBA was 16.5% per annum, though there is significant variability around this average value.



The expected rate of salary growth post-MBA of 16.5% may seem lower than expected, especially since many of the other surveys quote numbers in the region of 30%. Unfortunately, these higher numbers are unrealistic, especially since they are based on flawed methodologies. For example, a sustained annual growth rate of 30% would result in nearly a quadrupling of salary over 5 years. The calculated figure of 16.5% is actually very high relative to wage inflation in South Africa (which is in single digits), and translates into a doubling of salary over 4.5 years. The pre-MBA growth rate of 11% is quite high as well. This means that, on average, those who enrolled for the MBA enjoyed a higher rate of salary growth than the single-digit growth of the rest of the working population. This is perhaps not surprising, since MBA students are likely to be ambitious and to take their careers seriously. For example, one MBA graduate commented that what he liked most about the MBA was “being around like minded individuals all focused on success”. There is a significant amount of variability around the average value of 16.5%. This means that a random MBA graduate is unlikely to experience a sustained 16.5% increase every year over a period of time. The average salary growth rate is unlikely to be the reality for most graduates.





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6.3.3

Some interesting differences between demographic groups

The expected increase in salary as a result of the MBA is lower for females than males. The impact of the MBA on salary growth decreases with age, but increases as the graduate moves up the management ranks. The average salary growth rate of Black MBA students and graduates is higher than for the other population groups, though the overall MBA impact was slightly lower. Indian MBA graduates benefited the most in terms of salary growth related to the MBA degree.

We’ve seen that, on average, the MBA has the effect of adding an extra 5.5% per annum to the graduate’s salary growth post-MBA. There are some interesting differences in this average across demographic groupings. For example, the increase is only 1.9% per annum for females (compared to 6.3% per annum for males). It also reduces as the graduate gets older, with those currently aged 50-59 currently enjoying only 1.9% per annum extra salary growth as a result of the MBA. As the graduate moves up the management ranks, so the impact of the MBA on salary growth is greater. The increase is only 1.4% per annum for non-managers and junior managers, but 6.5% p.a. for senior and executive managers. The racial differences are interesting (see Figure 6.5 below). The MBA has the effect of adding an extra 5.0% per annum to the average salary growth rate of Black MBA graduates. This is slightly less than for the MBA group as a whole. One might expect the increase to be higher than average, due to the effect of the BEE (Black Economic Empowerment) codes and the need for corporates to appoint senior Black managers. In fact, the results are consistent with these expectations. Even though the impact of the MBA is slightly less than average in terms of increase in salary growth, the overall salary growth rate of the Black respondents is higher than average in all cases - pre-MBA (13.2% p.a. versus 11.0% p.a. overall) and post-MBA (18.2% p.a. versus 16.5% p.a. overall). Indian MBA graduates benefited the most in terms of salary growth related to the MBA degree. Their average salary growth rate increased by 7.4% per annum postMBA (from 7.2% p.a. to 14.6% p.a.).

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How do the business schools compare? Unfortunately we couldn’t compare the figures for impact on salary growth across different business schools, since the respective sample sizes were too small to produce statistically reliable estimates.

6.4 What impact does the MBA have on business turnover?
For those who run their own businesses, the business knowledge they attain during the MBA should have a positive impact on the performance of their business. "It was interesting to see the potential I have in growing my business. The MBA is really an eye opener for me in terms of aiming higher and successfully running my business." (Current MBA Student, Regent) "I've done a full time MBA while starting a hotel …. The pressure was on and I haven't slept much, but the implementation part of what I've learned in class during the day was priceless." (MBA Graduate 2011, USB) We tested the impact quantitatively by comparing the rate of turnover growth in the business before and after the MBA.

For those MBA graduates who run their own businesses, there seems to be a substantial average increase in annual turnover as a result of the MBA degree (in the order of 9% p.a.).

We started off by selecting those MBA graduates who had run their business throughout their MBA studies and for a period of at least three years after completing the MBA. We then asked them what the total turnover increase had been over the respective periods. By combining this data with the dates they started and completed the MBA, we were able to calculate the total annual percentage increase in turnover pre-MBA and post-MBA for each individual’s business. We had 50 complete data records across the sample. In 13% of the cases, turnover actually decreased over the period of the MBA. In smaller businesses, this could be partly related to the MBA entrepreneur having to split his time and focus between his business and the MBA. Post-MBA, only 2% of respondents experienced a decrease in turnover.

For those with turnover increases during the MBA study period, the average annual rate of turnover growth during the period was 8.8% per annum. For those with turnover increases after completing the MBA, the average annual rate of turnover growth was 17.8% per annum. There seems to be a substantial average increase in annual turnover as a result of the MBA degree (in the order of 9% p.a.).

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7. Did the MBA change your outlook on life?

Over two-thirds of respondents stated that the MBA had definitely changed their outlook on life. "[What I liked most was] the way in which my MBA slowly became a way of life, rather than an end goal to finally achieve." (Current MBA Student, NMMU)

67% of respondents stated that the MBA had definitely changed their outlook on life.

"I have learnt so so so much about business, people, viewpoints and looking into information not at it. And I have learnt a lot about myself and what I can, and more importantly, can’t do." (Current MBA Student, Regent)

Has the MBA changed your outlook on life?

ALL (n=1680)
80%

70%

67%

60%

50%

% of sample
40%

30%

27%

20%

10%
5% 1% 0% Yes, definitely Yes, to some extent I don't know No, not really No, definitely not Not applicable 0% 0%

AVERAGE RESPONSE

Figure 7.1

This change in outlook was often unexpected and was very broad in how it affected people. The following comments have been classified into a few general themes.

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New Opportunities:

This change in outlook was often unexpected and was very broad in how it affected people. For many, it opened their eyes to new opportunities, renewed their interest in the world outside, gave them fresh perspectives, and created a different view of life and its purpose.

“The MBA opened my eyes to the opportunities that exist both in the entrepreneurial world and the business world.” (MBA Graduate 2011, Milpark) “In life I have realized that we all knock but the person with the greatest knock receives the answer. The MBA opens big doors and I am up for the challenge to knock on those big doors.” (Current MBA Student, Regent)

Renewed Interest in the World Outside: "It changed my life! Now I even watch news, have interest on what’s going on around me." (Current MBA Student, UKZN) "I changed me. ‘You can stay as you are, or you can change to Mainstay.’ It genuinely made me get out of my Afrikaner outlook on life and get myself exposed to the bigger world out there. It made me go from Kurt Darren to Frank Sinatra. It complimented my inquisitiveness. I'm reading a lot more about current affairs. It made me look at people differently - making me a better leader in my environment." (MBA Graduate 2011, USB) "One is made to "open their eyes" and become aware of the effects that external factors have on the business world. It has taught me to think differently and has literally opened up the doors to a world that I never considered before! I would consider that my abilities have increased tenfold and continue increasing as each new day, my new "way of thinking" seeks out information that I would never have considered previously." (Current MBA Student, UKZN) New Perspectives: “[What I like most is] when it started changing my view or perspective about what I had thought I understood. So much learning!!” (Current MBA Student, Milpark) "I have changed the way I see the world." (Current MBA Student, Regent) "It empowered me to challenge the norm, to think differently about society, politics and business in general. It opened my mind." (MBA Graduate 2010, NWU Potch)

Different View of Life and its Purpose: "It gives you a helicopter view of your life, your work, your love." (Current MBA Student, USB) “I found my calling during my thesis.” (Current MBA Student, UCT) "It changed me as a person and my outlook on life. I now know that I can do anything." (MBA Graduate 2007, UFS) Page 60
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How do the business schools compare? All business schools were effective in changing the outlook of students, with scores ranging between 8.5 and 9.3 on the 0-10 scale (with an average of 8.9). Schools scoring the highest were:
Schools with highest scores for changing the outlook of students (average = 8.9) NMMU, Regent, UFS (9.3)

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8. Did the MBA change your view of yourself and your potential?
The MBA had a huge impact on people’s view of their own potential (see Figure 8.1 below). “It has taken me completely out of my comfort zone and challenged me so much that I am now entering a stage of my life that has the potential to change South Africa.” (Current MBA Student, GIBS) “It is not only the qualification or the financial benefit but more importantly the skills, experience and the impact I will have on society … I see myself as a dreamer with a lot of initiatives and innovative ideas soon to be unleashed. It, however, would have been quite difficult to realize my dreams or implement these initiatives if I had not enrolled for the MBA.” (Current MBA Student, Regent) “Taking on the MBA showed me that with a goal and a plan anything is possible.” (MBA Graduate 2005, UCT)

The MBA had a huge impact on people’s view of their own potential. MBA students learned a lot about themselves in the course of their studies, which contributed to the change in how they viewed themselves.

Has the MBA changed your view of your own potential?

ALL (n=1679)
80% 75%

70%

60%

50%

% of sample
40%

30% 20%

20%

10%
4%

1%
0% Yes, definitely Yes, to some extent I don't know No, not really

1%
No, definitely not

0% Not applicable

AVERAGE RESPONSE

Figure 8.1

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Respondents learned a lot about themselves in the process, which contributed to the change in how they viewed themselves: “I've enjoyed learning about myself and capabilities, I am regaining my self- esteem through this journey and that for me is priceless.” (Current MBA Student, GIBS) "Taught me more about myself than any other experience and exposed me to experiences and activities I could get nowhere else." (MBA Graduate 2006, WBS) “I learned maturity, humility, personal leadership. Also that you should not fear the unknown - go for it!!” (Current MBA student, GIBS )

The MBA also had a huge impact on people’s levels of confidence and selfbelief.

The MBA also had a huge impact on people’s levels of confidence and self -belief (see Figure 8.2 below).
Has the MBA increased your confidence and self-belief?

ALL (n=1678)
80% 74% 70%

60%

50%

% of sample
40%

30% 21% 20%

10%
1% 0% Yes, definitely Yes, to some extent I don't know No, not really No, definitely not Not applicable 3% 0% 0%

AVERAGE RESPONSE

Figure 8.2

"It is keeping me on my toes constantly, it is mentally challenging and has given me a confidence in mental ability that I could have never imagined. It has really boosted my ego and when I walk, I walk with pride and confidence knowing that I am able to manage my life and balance things accordingly." (Current MBA Student, NMMU) "THE CONFIDENCE IT GAVE ME THAT I COULD DO ANYTHING" (MBA Graduate 2004, UCT)

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"The MBA taught me about balancing all aspects of my life and gave me more confidence than I would ever imagine." (MBA Graduate 2010, UFS) "It is mostly the confidence of what this gave to me in academic, career and personal life...that was just immeasurable..." (Current MBA Student, UKZN)

Some people (a small minority) actually lost self-confidence – though as the comment below shows, this may actually have been beneficial: “I have lost some confidence (which in hindsight was probably arrogance) and am far more aware of my areas of growth." (Current MBA Student, Regent) "Getting to understand that I do not know what I do not know." (Current MBA Student, USB)

How do the business schools compare? All business schools were effective in impacting people’s view of their own potential, with scores ranging between 8.3 and 9.6 on the 0-10 scale (with an average of 9.1). Schools scoring the highest were:

Schools with the highest scores for increasing people’s view of their own potential (average = 9.1) Rhodes NMMU, UFS, Mancosa (9.6) (9.5)

How do the business schools compare? All business schools were effective in increasing the confidence and self-belief of students, with scores ranging between 8.7 and 9.6 on the 0-10 scale (with an average of 9.1). Schools scoring the highest were:

Schools with the highest scores for increasing confidence and self-belief (average = 9.1) Rhodes NMMU Mancosa, Regent (9.6) (9.5) (9.4)

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9. Did the MBA elevate your status in your business and community?

The MBA had a positive effect in elevating the holder’s status amongst his or her work colleagues.

Has the MBA elevated your status among your work colleagues?

ALL (n=1678)
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 1% 0% Yes, definitely Yes, to some extent I don't know No, not really No, definitely not Not applicable 10% 11% 44%

32%

% of sample

2%

AVERAGE RESPONSE

Figure 9.1

The MBA had a positive effect in elevating the holder’s status amongst his or her work colleagues.

“It is also boosting my confidence as most people treat my ideas differently now after knowing that I am doing an MBA. It is worth all the sweating.” (Current MBA Student, Regent) “The people around me respect and value my views a lot more now than before I started the course.” (MBA Graduate, Regent)

"[What I like most is] being part of an elite group" (MBA Graduate 2000, UFS)

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The results show that the MBA changes other’s perceptions of the graduate. However, sometimes the opposite dynamic comes into play, where the MBA graduate changes his or her perceptions of others. For example: "Sometimes it makes highly regarded individuals sound so ordinary, at times I even lose interest in listening to my seniors at work." (Current MBA Student, Milpark)

How do the business schools compare? All business schools were effective in elevating people’s status amongst their work colleagues, with scores ranging between 7.3 and 8.2 on the 0-10 scale (with an average of 7.7). Schools scoring the highest were:

Schools with the highest scores for elevating status amongst work colleagues (average = 7.7)

The MBA also had a positive effect in elevating the holder’s status amongst his or her friends, but to a lesser extent than work colleagues.

Regent, Mancosa NMMU, UKZN

(8.2) (8.1)

The MBA also has a positive effect in elevating the holder’s status amongst his or her friends, but to a lesser extent than work colleagues.
Has the MBA elevated your status among your friends?

ALL (n=1677)
40% 35%

35%

30%

30%

25%

% of sample
20%

18%

15%

13%

10%

5%

3% 1%

0% Yes, definitely Yes, to some extent I don't know No, not really No, definitely not Not applicable

AVERAGE RESPONSE

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“I now stand tall in the community. I enjoy respect from both seniors and peers alike in the community because I have graduated with the MBA.” (MBA Graduate, Mancosa) "[I like] the fact that I have an MBA and the positive awe and perception attributed to the degree." (MBA Graduate 2006, UCT)

However, the MBA still carries an elitist reputation in some communities, as evidenced by the comment below: "The MBA has a bit of a stigma and people either admire my choice or judge me (negatively) for choosing to do an MBA. I hate the negative image and do not like having to apologise for my choice. I wish it could have the reputation of being a learning experience and that non-students would respect our choices to study." (Current MBA Student, Regent)

How do the business schools compare? Scores for elevating people’s status amongst their friends ranged between 6.0 and 8.1 on the 0-10 scale (with an average of 6.9). Schools scoring the highest were:

Schools with the highest scores for elevating status amongst friends (average = 6.9) Regent Mancosa Milpark, Rhodes (8.1) (7.9) (7.7)

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10. Did the MBA help you become a more effective leader in your personal life?

The MBA is marketed as a business degree, yet amazingly it helped the majority (81%) of respondents to become more effective leaders in their personal lives as well.

Has the MBA helped you become a more effective leader in your personal life?

ALL (n=1722)
45% 40% 35% 30% 42% 39%

% of sample 25%
20%

15%
11% 10% 5% 5% 1% 0% Yes, definitely Yes, to some extent I don't know No, not really No, definitely not Not applicable 1%

AVERAGE RESPONSE

Figure 10.1

The MBA is marketed as a business degree, yet amazingly it helped the majority (81%) of respondents to become more effective leaders in their personal lives as well.

"The course allows you to think!!! And be able to apply your knowledge to the day to day life activities. Even at home as women leading huge families, you can use your leading skills learnt from the course." (Current MBA Student, Regent)

"The knowledge gained … is not only relevant to business but to life in general." (Current MBA Student, UKZN)

"[What I liked most about the MBA is] the value it added to me as an individual in my personal life." (MBA Graduate 1999, USB)
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How do the business schools compare? Scores for helping people become better leaders in their personal lives ranged between 6.4 and 8.9 on the 0-10 scale (with an average of 7.8). Schools scoring the highest were:

Schools with the highest scores for helping people become better leaders in their personal lives (average = 7.8) Regent NMMU Milpark, Mancosa, UFS (8.9) (8.4) (8.3)

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11.

What is the value of the MBA network?

One of the side benefits arising from the MBA degree is the network to which MBA students and graduates are exposed. This can often have a life-changing impact and the benefits can extend many years after the degree has been completed. "[What I liked most was] the robust discussions we had in class. Sometimes it felt you would want to kick the butt out of some people, but at the end of the day it was fun. The syndicate study system has allowed me to meet and make friends with people I never thought I'd be friends with. These relationships are very important and will have an impact in future." (Current MBA Student, NMMU)

"I have met some truly remarkable people. While we may not necessarily go into business together, the networking potential is useful - six degrees of separation." (Current MBA Student, UCT)

The network to which MBA students and graduates are exposed can have a life-changing impact.

We decided to investigate the real value that people derived from the MBA network.

11.1 How impressed were people with the calibre of their fellow students?
45% of respondents were very impressed with the calibre of their fellow students, with an equal percentage being somewhat impressed.
The quality of the MBA network is directly affected by the quality of the students that the individual interacts with during their MBA studies. We asked respondents whether or not they were impressed with the calibre of their fellow students. The result was very positive, with 45% being very impressed and an equal percentage somewhat impressed with the quality of their classmates. “[What I liked is]… knowing that I am networking with the future leaders of South Africa.” (Current MBA student, GIBS) “Exposure to an amazing network of brilliant minds” (Current MBA Student, Milpark)

The high quality of people that students encountered during their studies contributed greatly to the value they derived from the course: “The people and fellow students - that's where I learnt the most. The course work was pure study whereas the group work and interpersonal relations was a multifaceted experience.” (MBA Graduate 2010, UCT) “Due to the high quality of students on the MBA, the major part of the learning was from the class interaction.” (Current MBA Student, GIBS)

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Looking at your MBA class, were you impressed with the calibre of your fellow students?

ALL (n=1702)
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 1% 0% Yes, definitely Yes, to some extent I don't know No, not really No, definitely not Not applicable 1% 1% 8% 45% 44%

% of sample

AVERAGE RESPONSE

Figure 11.1

How do the business schools compare? Scores for people’s perceptions around the calibre of their fellow students ranged between 7.5 and 8.4 on the 0-10 scale (with an average of 8.1). Schools scoring the highest were:

Schools with the highest scores for the calibre of fellow students (average = 8.1) GIBS, UCT USB, NWU Potch (8.4) (8.3)

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11.2 How useful is the MBA network for career and business?
Many MBA students identified others that could play a role in their career or business goals.
Given the long hours spent with their fellow classmates, it seems natural that students would identify others that could play a role in their career or business goals. In fact, we found that people often decided to study an MBA with these specific goals in mind. For example, we found that over a third of students were specifically hoping to find a job through the MBA network (see Figure 11.2).9 However, their success rate was very low – only 14% of these people (i.e. 5% out of the 34% that were looking) actually did find a job through the network.
Did you find a job through the MBA network? 14% of those who were specifically looking for a job through the MBA network were successful
ALL (n=1084)

YES (13%)

NO (87%)

I was specifically hoping to find this through the MBA network (34%)

5%

29%

I was NOT specifically hoping to find this through the MBA network (66%)

8%

58%

34% of students were specifically hoping to find a job through the MBA network, but only 14% of them were successful. People who were specifically looking to employ someone through the network were much more successful – 24% of these did so.

Figure 11.2

People who were specifically looking to employ someone through the network were much more successful – 24% of these did so (see Figure 11.3). This relatively large percentage reflects the high perceived calibre of MBA classmates.

9

How to interpret Figure 11.2: This figure shows how respondents answered the question: “Did you find a job through the MBA network?”- 13% answered “Yes” and 87% answered “No”. We further explored the answers by asking people whether or not they had specifically been looking for a job through the MBA network – 34% answered “Yes” and 66% answered “No”. The size of the blue balls in Figure 11.2 represents the proportion of people in the total sample who fall in each of the four respective ways of breaking down the answer options. For example, 5% of respondents found a job after specifically looking for one. On the other hand, 29% of people did not manage to find a job through the network, even though they were hoping to find one initially.
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Also, working in teams with classmates enables a deeper insight into their work ethic and competence, and helps to assess suitability for later employment. Only 12% had the initial goal of finding someone to employ.
Did you employ someone through the MBA network? 24% of those who were specifically looking for someone to employ through the MBA network were successful
ALL (n=860)

YES (12%)

NO (88%)

I was specifically hoping to find this through the MBA network (12%)

3%

9%

I was NOT specifically hoping to find this through the MBA network (88%)

9%

79%

Figure 11.3

Those who actively sought a business partner through the network were successful in 38% of cases. Over a quarter of respondents found a business opportunity through the MBA network. Finally, 24% of respondents aimed to attract new clients from their network. Of these, 31% were successful.

Those who actively sought a business partner through the network were successful in 38% of cases. Nearly 20% of people started off with this aim. Another popular use of the network is to find a business opportunity, with a third of students having this intention. Over a quarter of respondents found a business opportunity through the MBA network. Finally, people seem to view the MBA network as a good source of business clients, with 24% of respondents aiming to attract new clients from their network. Of these, 31% were successful. Those who weren’t specifically looking to attract new clients were also successful in doing so (23%).

The full data is given in Figures 11.4-11.6 below10.

10

Note that percentages displayed on the charts have been rounded, but all decimal places were retained in calculating the implied percentages.

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If you started your own business during or after the MBA, did you find a business partner through the MBA network? 38% of those who were specifically looking for a business partner through the MBA network were successful
ALL (n=507)

YES (26%)

NO (74%)

I was specifically hoping to find this through the MBA network (19%)

7%

12%

I was NOT specifically hoping to find this through the MBA network (81%)

18%

63%

Figure 11.4

Did you find any business opportunity through the MBA network? 24% of those who were specifically looking for a business opportunity through the MBA network were successful
ALL (n=1185)

YES (28%)

NO (72%)

I was specifically hoping to find this through the MBA network (33%)

8%

25%

I was NOT specifically hoping to find this through the MBA network (67%)

20%

47%

Figure 11.5 A report commissioned by Finweek in conjunction with MBAconnect.net

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Did you find any clients for your business through the MBA network? 31% of those who were specifically looking for business clients through the MBA network were successful
ALL (n=1023)

YES (25%)

NO (75%)

I was specifically hoping to find this through the MBA network (24%)

8%

17%

I was NOT specifically hoping to find this through the MBA network (76%)

18%

58%

Figure 11.6

How do the business schools compare?
Schools with the highest % successfully finding …

A job (average = 13%) UCT GIBS USB (29%) (29%) (29%)

An employee

Business clients

A business opportunity A business partner (average = 28%) GIBS (44%) NMMU (36%) (average = 26%) GIBS NMMU Milpark (45%) (35%) (34%)

(average = 12%) (average = 25%) WBS (29%) GIBS Rhodes UKZN (38%) (33%) (29%)

Regent (29%) GIBS (29%)

Rhodes (30%)

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About half the sample found the MBA network useful in resolving a business challenge, as shown in Figure 11.7 below.
Did the MBA network help you resolve a business challenge?

ALL (n=1697)
60%

51% 50%

40%

% of sample
30% 30%

20% 14% 10% 6%

0% Yes No I don't know Not applicable

Figure 11.7

51% found the MBA network useful in resolving a business challenge.

“The people that I have met and the networks that have been created have also proved to be very valuable to me as I can bounce ideas off fellow MBA alumni and get guidance on challenges I have faced.” (MBA Graduate 2010, GIBS) "The long term friendships and networking realised with very talented individuals at school who still support and advise on critical business decisions." (Current MBA Student, Mancosa) "The friendships that you made and the network of business professionals that you build, provides an invaluable resource in your career progressing forward..." (Current MBA Student, USB)

How do the business schools compare? Schools with the highest percentage of people using the network to resolve a business challenge were:
Schools with the highest scores for using the network to resolve a business challenge (average = 51% GIBS Henley USB A report commissioned by Finweek in conjunction with MBAconnect.net (63%) (60%) (58%)

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11.3 How useful is the MBA network for personal relationships?
A remarkable 81% of respondents made a good friend through the MBA network. A further 5% actually found a relationship partner / spouse through the MBA network.
A remarkable 81% of respondents made a good friend through the MBA network. "It amazes me how one starts the year with a room of strangers and by the end of the year they feel like family." (Current MBA Student, UCT) "The best part of my MBA experience is the lifetime bond/friendship that I developed with my group. Our families still meet regularly and we definitely will remain friends forever." (MBA Graduate 2011, UKZN) “I made some friends for life” (Current MBA Student, GIBS) "They are my classmates, but they have become close friends as they have seen many facets of my persona that seldom surface at work and rarely in my personal life. The relationships and networking on its own is worth close to the value of the heavy debt of my study loan that my bank is very familiar with." (Current MBA Student, USB)

In many cases, these bonds formed over the MBA studies persist despite distance and time (the second comment below was made by a respondent who graduated 40 years ago): “[What I liked most is] the people I met and the relationships we made...we're still friends after 5 years even though we're 100's of kilometres apart” (MBA Graduate 2009, Milpark)

"It was a terrifying experience but great for camaraderie and making of long time, if seldom seen, friends." (MBA Graduate 1971, UCT)

How do the business schools compare? Schools with the highest percentage of people making a good friend through the MBA were:

Schools with the highest percentage of people making a good friend through the MBA (average = 81%) UCT, Rhodes GIBS (91%) (89%)

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Interestingly, a further 5% actually found a relationship partner / spouse through the MBA network.

How do the business schools compare? Schools with the highest percentage of people finding a relationship partner/spouse through the MBA were:

Schools with the highest percentage of people finding a relationship partner/spouse through the MBA (average = 5%) UCT WBS NWU Potch (10%) (7%) (5%)

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12.

What did you like most about the MBA?

The results have shown that the MBA benefits people in many different areas of their lives. But what do they like most about their MBA experience? The answer to this question is difficult to capture in a quantitative questionnaire, so we decided to allow people to provide open-ended free responses instead. In total, we received 1,429 responses which were carefully read and tagged according to the main theme(s) of the response. We were pleasantly surprised by the level of detail provided by the respondents – in fact, the average response was allocated to 2.2 different themes. In total, 90 themes were identified, though half of these were mentioned by less than 1% of the respondents. The most common theme was mentioned by nearly a quarter of respondents.

We received 1,429 openended responses to the question about what people liked most about the MBA.

Some people mentioned that what they liked most about the MBA was finishing it! As mentioned previously, not one of the 1429 respondents mentioned that what they liked most about the MBA was the financial impact it had in terms of salary increase. The eight most common themes are discussed below.

12.1 Theme 1: Impact of Interactions (mentioned in 24% of responses)
MBA students really valued their interactions with high-calibre likeminded people during their MBA studies. They appreciated the quality of the network they were now part of – both the opportunities that result from the network, as well as the social benefits.
MBA students really valued their interactions with high-calibre like-minded people during their MBA studies. They appreciated the quality of the network they were now part of – both the opportunities that result from the network, as well as the social benefits. "The networking and opportunities to work on a common goal with like-minded, bright individuals was one of the highlights of the MBA experience." (MBA Graduate 2007, WBS) "The network it opened up and experience in leadership (and mistakes) it taught me will go with me forever." (MBA Graduate 2005, UCT) “The high level interaction in terms of highly skilled people was awesome.” (Current MBA Student, Milpark) Students appreciated that the group interaction sessions were free of the ‘corporate politics’ they often encountered in the work-place: "[I liked] the opportunity to interact with different intelligent people without any agenda as all had a common goal." (MBA Graduate 2002, UCT) "Being allowed to express your opinion and not always agreeing with everything being taught." (MBA Graduate 2010, NWU Potch) Page 79
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Group interactions also helped to developed students’ soft skills: “The interaction with other students who come from different work backgrounds and cultures … helps you grow as a person and also arms you with more soft skills." (MBA Graduate 2005, Henley)

How do the business schools compare? Schools for which the Impact of Interactions theme was most mentioned (24% across the whole sample) include:

Schools with the highest % of mentions of the Impact of Interactions theme (average = 24%) GIBS UCT WBS, USB (43%) (38%) (30%)

12.2 Theme 2: Stimulating Environment (mentioned in 14% of responses)
MBA students enjoy the high-level intellectual stimulation and interactivity of the MBA classroom and broader environment. "Most intellectually stimulating time of my life!" (MBA Graduate 1997, WBS) "I enjoyed listening to the guest speakers, some were politicians, some were famous businessmen, but they all help to broaden your perception of business and the way we look at the world " (Current MBA Student, UFS) Much of this stimulation stemmed from the diversity of students in the MBA classroom and the resulting differences of opinion: "The cultural diversity in my MBA class was so enriching, having people across the race band interacting in sharing experiences and their view points on South Africa." (MBA Graduate 2011, USB) “The classroom environment that allowed debate of theories amongst professionals from different environments who all had their own unique points of view.” (MBA Graduate 2006, GIBS) "The ability to see different business viewpoints from different people in the various industries from around the country. It was fascinating to speak to classmates about their experiences about the varied and difficult challenges that the South African Economy is facing and the wide-ranging solutions proposed." (Current MBA Student, UKZN) Page 80
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MBA students enjoyed the high-level intellectual stimulation and interactivity of the MBA classroom and broader environment. Much of this stimulation stemmed from the diversity of students in the MBA classroom and the resulting differences of opinion. The MBA classroom also created a safe place to explore new ideas and different thinking.

Should I do an MBA or not?

Many people mentioned that MBA classroom created a safe place to explore new ideas and different thinking: “[What I like were the]… classroom debates about contentious issues in a safe environment.” (MBA Current Student, GIBS)

“Working in syndicates was the perfect experimentation platform.” (MBA Graduate 2007, GIBS)

How do the business schools compare? Schools for which the Stimulating Environment theme was most mentioned (14% across the whole sample) include:

Schools with the highest % of mentions of the Stimulating Environment theme (average = 14%) GIBS WBS Milpark (26%) (22%) (19%)

12.3 Theme 3: Attainment of Business Knowledge (mentioned in 14% of responses)
This theme is not surprising, given that the attainment of business knowledge and business skills is the main reason that people do an MBA. "The MBA made me commercially literate" (MBA Graduate 1997, WBS) "It filled massive knowledge gaps about the business world for me." (MBA Graduate 2006, Rhodes) "I went from knowing virtually nothing about the nuts and bolts of business to a man with deep confidence and understanding to the point where I was able to consult the senior executive committee of a mining house about how to run their mine more effectively, and I know nothing about the mining business. Not to mention what it did for the management of my own companies." (MBA Graduate 2005, WBS) "I enjoyed learning the theory which gave my practical experiences and business intuition a more solid foundation and clarity … I also enjoyed learning all the business buzz words that are used in corporate sector which is usually just hype but nevertheless useful to know." (MBA Graduate 2007, Mancosa)

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People appreciated the broad application of the business knowledge that they gained during their MBA studies.

People appreciated the broad application of the business knowledge that they gained during their MBA studies: “[The MBA] develops and enhances my ability to easily interpret, analyse, make relevant and recommend appropriate solutions & strategies in various settings” (Current MBA student, Milpark)

“The knowledge gained makes me more productive and the confidence in dealing with contemporary, complicated and challenging business issues, especially doing business in Africa and emerging markets.” (Current MBA Student, Milpark) "It is a well-rounded degree. I have a medical background with very little knowledge of the business sector ... I like that I can now open up the Business Times newspaper and actually understand it!!" (Current MBA Student, Regent)

Interestingly, a number of students freely admitted that the work was not terribly difficult, but rather challenging and time-consuming: “I also enjoyed the fact that most of the courses were not rocket science, but hard work. And lots of it.” (Current MBA Student, Milpark)

How do the business schools compare? Schools for which the Attainment of Business Knowledge theme was most mentioned (14% across the whole sample) include:

Schools with the highest % of mentions of the Attainment of Business Knowledge theme (average = 14%) NMMU Regent UKZN (29%) (27%) (21%)

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12.4 Theme 4: Holistic Business Understanding (mentioned in 14% of responses)
MBA students valued the greater holistic understanding of business that the degree provided.
MBA students valued the greater holistic understanding of business that the degree provided.

"It is interesting to see how everything fits together" (Current MBA Student, Regent) “The MBA has been instrumental in building my confidence and opening me up to leading edge thinking in various subsets of management. I can speak with knowledge on many disciplines in management and I am able to connect the dots with my business partners quicker and more accurately. I have also learnt how to ask the right questions and where to look for information / answers.” (MBA Graduate 2010, GIBS)

“It opens up your mind to thinking broadly about business as opposed to just your role.” (Current MBA Student, Milpark)

How do the business schools compare? Schools for which the Holistic Business Understanding theme was most mentioned (14% across the whole sample) include:

Schools with the highest % of mentions of the Holistic Business Understanding theme (average = 14%) Regent Mancosa Milpark (25%) (24%) (23%)

12.5 Theme 5: Broad Exposure (mentioned in 13% of responses)
The MBA degree involves exposure to many disciplines, and includes diverse course content which the students enjoyed. “It expands your knowledge, makes you think broadly, and know what is happening globally.” (Current MBA Student, Milpark) “Covered a wide variety of business topics in a very compressed amount of time.” (MBA Graduate 1974, UCT) "[The MBA] made me look outside my normal sphere of operation and appreciate different business scenarios." (Current MBA Student, Mancosa) Page 83
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The MBA degree involves exposure to many disciplines, and includes diverse course content which the students enjoyed.

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How do the business schools compare? Schools for which the Broad Exposure theme was most mentioned (13% across the whole sample) include:

Schools with the highest % of mentions of the Broad Exposure theme (average = 13%) WBS, USB NMMU, NWU Potch (17%) (16%)

12.6 Theme 6: responses)
A number of students mentioned that the syndicate or group work was one of the best aspects of the MBA degree.

Syndicate/Group

Work

(mentioned

in

8%

of

A number of students mentioned that the syndicate or group work was one of the best aspects of the MBA degree. “I liked the syndicate groups - invaluable in exchange of ideas, and in providing support and motivation for each other during the many stressful times." (MBA Graduate 2002, Henley) "It was great being immersed in a collective of like-minded, focused people. The group work was particularly important as much of the learning was gained from one’s colleagues" (MBA Graduate 1986, UCT) “The syndicate groups that I belonged to were always challenging and took one away from their comfort zones.” (Current MBA Student, Milpark) "Making new friends who 'were all in this together'" (MBA Graduate 2006, NMMU)

How do the business schools compare? Schools for which the Syndicate/Group Work theme was most mentioned (8% across the whole sample) include:

Schools with the highest % of mentions of the Syndicate/Group Work theme (average = 8%) WBS UCT, Rhodes (17%) (14%)

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12.7 Theme 7: New Thinking & Challenging Perceptions (mentioned in 7% of responses)
MBA students valued the exposure to new ideas, concepts and tools. The course challenged their thinking and their perceptions, and exposed them to new valuable experiences.
MBA students valued the exposure to new ideas, concepts and tools. The course challenged their thinking and their perceptions, and exposed them to new valuable experiences.

The MBA gave people new perspectives: “It switched my LIGHTS ON!” (Current MBA Student, Milpark) "It gave me an additional "gear" - an overdrive function and has made me able to think differently - a wider perspective" (MBA Graduate 2008, UFS) "I now look at the same issues differently, and am able to come with to more alternative answers" (MBA Graduate 2011, Henley) "It made me look at available information differently, I suddenly found sources of interesting information in books and magazines that I would normally not have given a second glance." (MBA Graduate 2007, Mancosa)

It also challenged their thinking: “[What I liked most] … is being constantly challenged and pushed beyond one’s comfort zone. The learning experience is such a privilege.” (Current MBA Student, GIBS) “Was stretched and grew substantially as a human being and businesswoman” (MBA Graduate 2005, GIBS) “S-T-R-E-T-C-H!! New challenges and experiences.” (MBA Graduate 2000, UCT) People were also exposed to new ideas and ways of thinking on the MBA: “Melting pot of ideas” (MBA Graduate 1989, UCT)

“I learnt something new every day.” (MBA Graduate 2011, GIBS) "Growing my mind - especially in areas I would normally avoid!" (Current MBA Student, Regent) "Gaining that "helicopter view" and feeling energised to think critically." (Current MBA Student, NMMU)

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How do the business schools compare? Schools for which the New Thinking & Challenging Perceptions theme was most mentioned (7% across the whole sample) include:

Schools with the highest % of mentions of the New Thinking & Challenging Perceptions theme (average = 7%) GIBS Milpark Regent (15%) (11%) (8%)

12.8 Theme 8: Intensity & Pressure (mentioned in 7% of responses)
A fairly large number of respondents mentioned that the intensity, pressure and pace of the MBA were some of the things they liked best about the course. There are a number of reasons for this. The MBA tends to attract ambitious people who thrive on challenges. The pressure and pace helped students learn new skills and grow, and forced them to learn quickly. It also helped them test their limits, and gave them a new respect for their own potential. Finally, it heightened their sense of achievement when tasks were completed.
Surprisingly, a fairly large number of respondents mentioned that the intensity, pressure and pace of the MBA were some of the things they liked best about the course. One might think that this reflected an acceptance of the high work-load that students expected when starting the MBA. "The stress, pressure and group dynamics are challenging and tough - but that is why you are there. You cannot improve your abilities if you cannot deal with these pressures." (Current MBA Student, UKZN) However, this wasn’t the case – students actually valued the intensity and pressure of the course. For example: “It taught me how to prioritise, work in small groups, assess a situation and present my analysis. The ability to assimilate a large amount of info. Most of all it taught me to know myself - what were my abilities and limits emotionally, physically and intellectually - and how far I could push myself.” (MBA Graduate 1986, UCT) "[I liked] the fact that I was given frameworks to package my thinking" (Current MBA A number of different themes relating to the benefits of the intensity and pressure of the MBA course are discussed below. 1) The MBA tends to attract ambitious businesspeople who thrive on challenges: "[I liked] the fact that I was given frameworks to package my thinking" (Current MBA Student, Henley) "The MBA was extremely challenging on a mental, physical and emotional level. I enjoy challenges and the timelines required to produce quality work made the MBA much more exciting." (MBA Graduate 2010, Regent) "The challenge was epic." (MBA Graduate 2006, Rhodes) Page 86
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“[What I liked most is]…the personal challenge to excel in an uncomfortable environment.” (MBA Graduate 2007, GIBS)

2) The pressure and pace of the MBA pushed and challenged students and forced them to learn quickly: “The unbelievable pace of the program … didn't give you a moment for self-doubt.” (MBA Graduate 2008, GIBS)

3) Some students saw the intense pressure as a useful way to learn new skills: “[What I liked most about the MBA was] the amount of directly usable skills I developed and the personal growth that took place through studying under pressure” (MBA Graduate 2001, GIBS)

"The fact that it instilled in me a need to better manage my time from a study, business and personal life point of view if I wanted to succeed in my studies. You can't get that discipline from a text book." (MBA Graduate 1995, Henley)

“[What I liked most were] skills developed as part of the MBA process, particularly in terms of operating under constant high-pressure conditions. These include: - stress management, - time management, - change management, - resilience communication – presentation” (Current MBA Student, Milpark) 4) The intense pressure and pace helped students to grow: "I think the things I didn't enjoy were those that made me grow the most, and challenged my comfort zone. So even though I did not enjoy the stress and pressure I would not change it, as it is a necessary part of the learning process." (Current MBA Student, UCT)

5) It taught people valuable coping skills:

"The greatest value was probably learning to deal with pressure. It wasn't liked at the time." (MBA Graduate 1976, WBS)

“[I enjoyed] the pressure - nothing fazes you after an MBA” (MBA Graduate 2001, UCT)

"Pushing myself to do more and learned to persevere even in bad times" (MBA Graduate 2010, NWU Potch)

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6) Students valued the fact that the pressure actually helped them test their limits and push their boundaries: Exploring the boundaries of my own physical, intellectual and emotional potential." (MBA Graduate 2009, USB)

"Proving to myself that I can conquer a course that very few believed that I could." (MBA Graduate 2009, USB)

7) It also gave students a new respect for their own potential: "It challenged and stretched me beyond what I thought I was capable of." (MBA Graduate 2007, UCT) "I didn't think I could work under such tremendous pressure, so the programme has helped me unearth the potential I never thought I had" (Current MBA Student, UKZN) “I also enjoyed the immense pressure of working until 2 or 3 am in the morning. I taught me a lot about myself and what I am capable of.” (MBA Graduate 2008, UCT) 8) Finally, the pressure heightened the sense of achievement when tasks and modules were completed: “[What I liked most was] the sense of achievement after each subject was completed and marks received.” (MBA Graduate 2011, Milpark) "The feeling of enhanced knowledge, and sheer satisfaction at achieving milestones on the way." (MBA Graduate 1989, UCT) "Achieving assignment hand-in's against all odds with short deadlines and tremendous pressures." (Current MBA Student, UKZN) "I learned how much you can really produce when you are under pressure." (MBA Graduate 2004, UCT)

How do the business schools compare? Schools for which the Intensity & Pressure theme was most mentioned (7% across the whole sample) include:

Schools with the highest % of mentions of the Intensity & Pressure theme (average = 7%) GIBS, UCT NMMU (15%) (11%)

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Part 2: The Bad News
The MBA has a positive long-term impact on graduates’ lives in a number of different areas. However, this is not the full story. Some people didn’t benefit much from the MBA at all. And, more importantly, we’ll soon see that the MBA requires significant sacrifices, particularly in the short term.
We’ve seen that the MBA has a positive long-term impact on graduates’ lives in a number of different areas:       Career Salary growth or growth in business turnover Outlook on life View of self-potential and impact on self-confidence Status and leadership in business and personal life Value of MBA network for business and personal relationships

However, this is not the full story.

"I've successfully managed to block out the bad memories... :-)" (MBA Graduate 2004, GIBS)

Some people didn’t benefit much from the MBA at all: “No impact whatsoever apart from making some good friends. It was a waste of time and money.” (MBA Graduate 2010, UCT) "The sacrifice in time wasn’t worth the effort and impact on my income and business savvy was minimal." (MBA Graduate 1998, WBS) “It made me realise that I didn't need one. But then, it took doing the degree to realise that, so perhaps I did?” (MBA Graduate 2004, UCT)

And some were disillusioned: “[What I liked most was] the sense of opportunity and hope for success that the MBA imbued in one. It made one feel like one could conquer the world. That of course was not true as one later found out.” (MBA Graduate 1986, UCT) "I think I expected more, one has this 'idea' of how an MBA is and of how difficult and challenging it will be and you make it such a big thing in your life. But then you start and after a couple of months the novelty wears off and you realise it all depends on what you make of it. It is not a golden ticket to success and riches." (MBA Graduate 2010, NWU Potch)

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More importantly, we’ll soon see that the MBA requires significant sacrifices, particularly in the short term. "I hated the negative impact it had on my personal life and the time it took away from my family; I hated the negative impact it had on my health; I am concerned that with all the sacrifices my family and I have made towards the MBA, the MBA may not provide a worthy return on investment" (Current MBA Student, UKZN) "It had taken a lot from my social life and family life. My work performance was jeopardised extremely." (Current MBA Student, GIBS)

An important note – ‘it’s worse than it seems’

The negative picture presented in this report is probably understated, due to the ‘survivorship bias’ – the sample mostly excludes those that dropped out of the course before completion.

Not all the students who enrol for the MBA can handle the “blood, sweat and tears” that is required to complete it. Many drop out before graduating. "The pressure got to be a bit much. Other students did not make it purely because of the pressure." (MBA Graduate 2003, WBS)

Unfortunately, none of these MBA drop-outs made it into the sample of respondents. This means that the results of the survey do not reflect the full reality, since they represent the views of those who either graduated or are currently enrolled. This is the so-called ‘survivorship bias’ which often plagues research of this nature. Those who dropped out presumably experienced the negative aspects of the degree to a greater extent than the survivors (since they dropped out for a reason). This means that the negative picture presented in this report is probably understated to some extent.

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13. Did the MBA actually have a negative impact on people’s careers?
The general perception is that people study an MBA in order to advance their careers. However, we found that some people’s careers actually suffered as a result of the MBA. Respondents were asked whether they ever declined a promotion, or were passed over for a promotion, because of constraints imposed by the MBA. This was a problem for 8% of the sample (or 1 in 12 people who study an MBA) – a surprisingly high figure. A further 4% weren’t sure if this had been the case or not. "[What I didn’t like were] the opportunities that I had to forego to succeed at my MBA." (Current MBA Student, UKZN)

The general perception is that people study an MBA in order to advance their careers. However, we found that some people’s careers actually suffered as a result of the MBA. 8% of the sample declined a promotion or were passed over for a promotion because of constraints imposed by the MBA. This was more of a problem for non-managers and those in junior management positions.

"It made me really unpopular at work as [my new knowledge] threatened people in my work place who attempted and succeeded to have me removed " (MBA Graduate 2002, UKZN)

As might be expected, this was more of a problem for those who felt the MBA definitely did not meet their expectations regarding job promotion (15% of these people declined a promotion or were passed over for a promotion because of constraints imposed by the MBA). Similarly, it was a problem for 14% of those who didn’t really think they made the right choice to study an MBA. It was also more likely to be a problem for junior management (20%) and nonmanagement (16%). In terms of industry, the worst affected were those who worked in Travel/Tourism (36%), Media/Journalism (19%), Legal/Regulatory (19%), and Operations (17%). Indian people were most affected of all the population groups (14%). How do the business schools compare? We compared the schools in terms of the negative impact on career as a result of declining or being passed up for a promotion because of the MBA (8% across the whole sample):

Highest impact Rhodes UFS UKZN Lowest impact Henley UCT WBS (1%) (2%) (3%) (15%) (14%) (13%)

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14. Was there a negative financial impact during the MBA?

During the MBA studies, the majority of students (68%) experienced a negative impact on their lifestyle from a financial point of view, needing to cut back on lifestyle expenses.
From a financial viewpoint, was/is your lifestyle impacted by the MBA studies? For example, do/did you have to cut back on some of your lifestyle expenses during the MBA?

ALL (n=1686)
45% 42%

40%
35% 30%

26%

% of sample 25%
20% 15% 10%

23%

7% 5% 0% 0% Yes, definitely Yes, to some extent I don't know No, not really No, definitely not Not applicable

1%

AVERAGE RESPONSE

Figure 14.1

During the MBA studies, the majority of students (68%) experienced a negative impact on their lifestyle from a financial point of view, needing to cut back on lifestyle expenses.

"It was an expensive undertaking and caused me financial pressure (I paid for it on my own but was not given payment flexibility, while others had their companies pay) ... But doing lectures 6 days [a week] from 8 to 5 gave too little time to take care of business. Money does not stop revolving just because we're studying!" (MBA Graduate 2006, Rhodes)

"It is very expensive such that most of your things have to be put on hold while you do the MBA" (Current MBA Student, Regent) “Finances make it worse because there are days in a month where one has to survive without food. This makes it hard to concentrate and focus. Never the less if one is doing something that one is passionate about one keeps on pushing even in days of hardship.” (Current MBA Student, Regent)

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"[I didn’t like] the monetary sacrifice made by my wife and child." (MBA Graduate 1971, WBS)

How do the business schools compare? We compared the schools in terms of the negative impact on lifestyle from a financial point of view On a scale of 0 to 10 with 0 representing ‘No, definitely not’ and 10 representing ‘Yes, definitely’, the average was 6.8 across all schools. The schools with the highest and lowest negative impact were:

Highest impact Regent Rhodes, UCT (8.5) (7.7)

Lowest impact Henley GIBS WBS (4.7) (5.5) (6.1)

In addition, more than half the respondents had to take leave to study the MBA, which impacts on either vacation time or has a negative financial impact if additional leave days were taken.

In addition, more than half the respondents had to take leave to study the MBA (see Figure 14.2), which impacts on either vacation time or has a negative financial impact if additional leave days were taken. How do the business schools compare? We compared the schools in terms of the percentage needing to take leave to study the MBA. The average was 54% across all schools, with the highest and lowest shown below:

Highest impact GIBS Rhodes UFS Lowest impact Milpark Regent, UCT (43%) (46%) (74%) (73%) (68%)

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Did you need to take leave to study the MBA e.g. for courses, overseas electives or exchange programmes?

ALL (n=1735)
60% 54% 50%

40%

39%

% of sample
30%

20%

10%

7% 0%

0% Yes No I don't know Not applicable

Figure 14.2

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15. How did studying for the MBA impact on people’s personal lives?

Studying for the MBA is time-consuming and demands dedication. Anecdotally, students report a negative impact on their personal lives. "It takes over your life. You have nothing left. Everything suffers because of the MBA." (Current MBA Student, GIBS) “Finances are making things worse. I had fights with my fiancé - we nearly gave up our relationship. There is a lot of stress that comes with the decision, but it is worth it. But it is not easy at all.” (Current MBA Student, Regent) "It took over my life for three years. You really need to make sure that you have a good support base in your partner, family and friends or you will fail. Ensure that they know what the challenges are going to be. Make sure that you have their buy in before you start this journey." (MBA Graduate 2007, UFS)

As a result of the pressure and work-load, MBA students report a negative impact on their personal lives. We looked at the impact on people’s marriages, relationships with friends and family, their sex life, health, diet, exercise, sleep, recreation/hobbies and stress levels.

"Huge impact on home life and massive sacrifice from family, heavy financial burden" (Current MBA Student, NMMU)

We felt it was important to measure the extent of the impact while studying for the MBA. We looked at the impact on people’s marriages, relationships with friends and family, their sex life, health, diet, exercise, sleep, recreation/hobbies and stress levels. The results were certainly interesting.

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15.1 How did studying for the MBA impact people’s marriages?
The MBA is sometimes termed the ‘divorce degree’ due to the negative impact it can have on people’s marriages. 7% reported a very negative impact on their marriage, with a further 37% reporting a somewhat negative impact. Some people actually reported an improvement in their marriage. In many cases, this was due to the couple going through the MBA together.
The MBA is sometimes termed the ‘divorce degree’ due to the negative impact it can have on people’s marriages. "The MBA degree led to my divorce ... If I had to re-do the degree, I would do things differently and not neglect my relationship." (MBA Graduate 2011) "I got served with divorce towards the end of my second year. I became aware of my potential [during the MBA] which … I guess threatened [my spouse] enough to [decide to leave me]" (Current MBA Student, Milpark) "I wish I had achieved a greater balance in my personal/work/study life. I feel as if I have neglected my family and girlfriend." (Current MBA Student, UKZN)

When asked how studying for the MBA impacted on their marriage (or relationship), 7% reported a very negative impact, with a further 37% reporting a somewhat negative impact. With nearly half the sample reporting a negative impact on their marriage overall, those with shaky marriages to start off should think twice before committing to study the MBA. "[What I didn’t like about the MBA was] the time it cut out of my life. Do it before you are married." (MBA Graduate 2008, NWU Potch)

If you were in a relationship or married when you started the MBA, how did you feel the MBA affected this?

ALL (n=1697)
40% 37%

35%

30%

25%

% of sample
20%

20%

15%

13%

14%

10%

8%

7%

5%

0% Very positive impact Somewhat positive impact No impact Somewhat negative impact Very negative impact Not applicable

AVERAGE RESPONSE

Figure 15.1

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Interestingly, some people actually reported an improvement in their marriage. In many cases, this was due to the couple going through the MBA together: "I did it together with my husband, so we provided each other with the support needed and also strengthened our marriage." (MBA Graduate 2010, Mancosa)

How do the business schools compare? Across all schools, at least 31% of students report a negative impact on their marriage, and this goes up to 57% in the worst case. The full results are as follows:

Negative Impact on Marriage/Romantic Relationship (average = 45%) Highest impact GIBS Milpark NMMU Lowest impact Regent UCT Rhodes (31%) (33%) (38%) (57%) (54%) (53%)

Very Negative Impact on Marriage/Romantic Relationship (average = 7%)

GIBS, UFS UKZN

(13%) (10%)

Henley NWU Potch, Mancosa

(1%) (2%)

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15.2 How did studying for the MBA impact people’s sex life?
8% reported a very negative impact on their sex life, with a further 34% reporting a somewhat negative impact. 6% reported a positive impact on their sex life. Nearly a third of these people actually found a relationship partner through the MBA network, which could partly explain this apparent anomaly.
We’ve seen that the MBA has a negative impact on people’s marriages and romantic relationships. Assuming that sexual intimacy is related to the health of the marriage/relationship, it follows that there should be a negative impact on sex life as well. Of course, not all students were married or in a relationship, which would dilute this effect to some extent. In fact, 66% of those who had experienced a negative impact on their marriage or romantic relationship also experienced a negative impact on their sex life. The extent of the negative impact was quite similar between the two, as shown Figure 15.2. When asked how studying for the MBA impacted their sex life, 8% reported a very negative impact, with a further 34% reporting a somewhat negative impact.

“I don’t have time to rest, socialise, my sex life is zero, even my spouse and kids are not happy because I am always attending lectures, group discussions and studying.” (Current MBA Student, Milpark)

How did you feel the MBA affected your SEX LIFE while you were studying?

ALL (n=1700)
50% 45% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Very positive impact Somewhat positive impact No impact Somewhat negative impact Very negative impact Not applicable 3% 8% 34%

% of sample

7%

3%

AVERAGE RESPONSE

Figure 15.2

Interestingly, 6% of students reported a positive impact on their sex life. Nearly a third of these people actually found a relationship partner through the MBA network, which could partly explain this apparent anomaly.

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How do the business schools compare? Across all schools, at least 29% of students report a negative impact on their sex life, and this goes up to 54% in the worst case. The full results are as follows:

Negative Impact on Sex Life (average = 42%) Highest impact GIBS UKZN Milpark Lowest impact Henley UCT, NWU Potch Rhodes (29%) (34%) (38%) (54%) (50%) (49%)

Very Negative Impact on Sex Life (average = 8%)

GIBS USB Milpark

(13%) (11%) (10%)

NWU Potch Henley, Mancosa

(3%) (4)

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15.3 How did studying for the MBA impact people’s relationship with friends and family?
Studying for the MBA not only affects people’s relationships with their spouses or romantic partners, but also their relationship with their friends and family. In fact, 79% of people who experienced a negative impact on their marriage also experienced a negative impact on their relationship with friends and family. The results are shown in Figure 15.3 below.
How did you feel the MBA affected your RELATIONSHIP with FRIENDS AND FAMILY while you were studying?

ALL (n=1705)
60%

50%

49%

40%

% of sample
30% 25% 20% 11% 10% 5% 0% 0% Very positive impact Somewhat positive impact No impact Somewhat negative impact Very negative impact Not applicable

10%

AVERAGE RESPONSE

Figure 15.3

10% reported a very negative impact on their relationship with friends and family, with a further 49% reporting a somewhat negative impact.

When asked how studying for the MBA impacted their relationship with friends and family, 10% reported a very negative impact, with a further 49% reporting a somewhat negative impact. "[I didn’t like] the time it took away from my family, children in particular." (MBA Graduate, NMMU) "Very hard work, difficult to fit in with a family life. I would do it earlier in life" (Current MBA Student, Regent) "Although one’s life is always going to demand a balance between work and home life, the additional study component makes for an additional challenge that takes away from the other two. If I were to change anything, it would be to allow for more home time, even if this is to the detriment of the other two, as you cannot get this time back once it's past." (Current MBA Student, GIBS)

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"The MBA was time consuming, I missed 27 weekends over two years....missing weddings/funerals etc." (MBA Graduate 2006, GIBS)

How do the business schools compare? Across all schools, at least a third of students report a negative impact on their relationship with friends and family, and this goes up to 75% in the worst case. The full results are as follows:

Negative Impact on Relationship with Friends & Family (average = 59%) Highest impact NWU Potch GIBS Milpark Lowest impact UCT Mancosa Regent, WBS (35%) (51%) (53%) (75%) (72%) (70%)

Very Negative Impact on Relationship with Friends & Family (average = 10%)

Milpark GIBS UKZN

(15%) (14%) (13%)

UCT Regent Rhodes

(3%) (5%) (6%)

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15.4 How did studying for the MBA impact stress levels?
The MBA is a very demanding degree, both in terms of the time required to study the material and the competitive environment. Not surprisingly, the majority of students reported a negative impact on their stress levels. The results are shown in Figure 15.4. When asked how studying for the MBA impacted their stress levels, 25% reported a very negative impact, with a further 56% reporting a somewhat negative impact. "I feel there is just too much work …sometimes you get so swamped it feels almost impossible to cope." (Current MBA Student, NMMU) "[I didn’t like] the constant weight on my mind about having to fulfil deadlines." (MBA Graduate 2000, Henley) "Chronic fatigue" (Current MBA Student, UCT) "It’s very stressful when you also have a full time job that is demanding." (Current MBA Student, Regent)

25% reported a very negative impact on their stress levels, with a further 56% reporting a somewhat negative impact. Some people reported a positive impact on stress. This was often due to a big lifestyle change as a result of studying for the MBA (e.g. moving to a new city, or even taking time off from work to complete the MBA full-time).

How did you feel the MBA affected your STRESS LEVELS while you were studying?

ALL (n=1705)
60% 56%

50%

40%

% of sample
30% 25% 20% 12% 10% 5% 1% 0% Very positive impact Somewhat positive impact No impact Somewhat negative impact Very negative impact Not applicable 0%

AVERAGE RESPONSE

Figure 15.4

Interestingly, some people reported a positive impact on stress. For some people, this was due to a big lifestyle change as a result of studying for the MBA. This Page 102
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could include moving to a new city, or even taking time off from work to complete the MBA full-time:

“[I was] away from the distractions of home, and I did not have to hold down a job (with the added stress) to pay for the year” (MBA Graduate, UCT) “… the full-time course gave me an opportunity to focus with very few other distractions.” (MBA Graduate 1994, UCT) "[What I liked most was] the time off from work!!! Seriously, I took a year off from work to do my MBA full-time. I felt the stress of exams, assignments etc. but it was different from the stress of the work situation. I probably would have coped with the stress of both if I opted for part time studies. However, I believe that the major factor in my personal growth during the MBA was not being burdened and stressed by a working environment while being free to immerse myself in the MBA environment. I feel that this allowed to me to free myself and openly explore and debate the concepts without having to return to the working environment as a "reminder of reality" This allowed me to make a step-change in my thinking, behaviour and confidence. I believe that the change would have been gradual and not as big if I had been studying part-time." (MBA Graduate 2005, UCT)

How do the business schools compare? Across all schools, at least 73% of students report a negative impact on their stress levels, and this goes up to 94% in the worst case. The full results are as follows:

Negative Impact on Stress Levels (average = 81%) Highest impact Rhodes GIBS, Mancosa (94%) (88%)

Very Negative Impact on Stress Levels (average = 25%)

Rhodes Milpark UKZN

(34%) (33%) (32%)

Lowest impact UCT Henley NWU Potch (72%) (73%) (77%) UCT Henley UFS (13%) (15%) (18%)

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15.5 How did studying for the MBA impact health?
5% reported a very negative impact on their health, with a further 31% reporting a somewhat negative impact.
We’ve seen that the majority of MBA students suffered increased stress levels. The connection between stress and health is well-known, and so we might expect a similarly negative impact on students’ health. For example: "The time constraint [was a problem]. No time for friends and family. My health and stress and sleeping problem affected me badly" (Current MBA Student, GIBS) In fact, 92% of those experiencing a negative impact on stress also experienced a negative impact on health. The extent of the impact on health was not as severe, though. The results are shown in Figure 15.5. When asked how studying for the MBA impacted their health, 5% reported a very negative impact, with a further 31% reporting a somewhat negative impact.

"The impact on my health and personal life was a negative for me. Having said that, my health has recovered in less than a year and I would do it all over again as the benefits far outweigh the challenges..." (MBA Graduate 2010, GIBS)

How did you feel the MBA affected your HEALTH while you were studying?

ALL (n=1707)
60% 54% 50%

40%

% of sample
30%

31%

20%

10% 3%

6%

5% 1%

0% Very positive impact Somewhat positive impact No impact Somewhat negative impact Very negative impact Not applicable

AVERAGE RESPONSE

Figure 15.5

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How do the business schools compare? Across all schools, at least a quarter of students report a negative impact on their health, and this goes up to 47% in the worst case. The full results are as follows:

Negative Impact on Health (average = 36%) Highest impact GIBS USB UKZN, NMMU Lowest impact Henley, NWU Potch, UFS (25%) (47%) (46%) (45%)

Very Negative Impact on Health (average = 5%)

UKZN Milpark GIBS

(12%) (9%) (8%)

UFS Henley, Mancosa

(0%) (1%)

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15.6 How did studying for the MBA impact diet?
Like health, there is a well-documented connection between stress and diet.11 So again we might expect a negative impact on students’ diet, given the strong negative impact on stress levels. In fact, 88% of those experiencing a negative impact on stress also experienced a negative impact on diet. Again, the extent of the impact on diet was not as severe as that on stress. The results are shown in Figure 15.6 below.
How did you feel the MBA affected your DIET while you were studying?

ALL (n=1707)
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Very positive impact Somewhat positive impact No impact Somewhat negative impact Very negative impact Not applicable 5% 2% 1% 15% 33% 45%

% of sample

AVERAGE RESPONSE

Figure 15.6

15% reported a very negative impact on their diet, with a further 33% reporting a somewhat negative impact.

When asked how studying for the MBA impacted their diet, 15% reported a very negative impact, with a further 33% reporting a somewhat negative impact. On the light-hearted side, one MBA student reported that her business school “fed [them] too well”.

11

For example, stress can frequently cause sub-optimal consumption of healthy foods and overeating of snack food, resulting in weight gain plus nutritional deficiencies. Also, stress often leads to increased intake of coffee, tea, fizzy drinks and chocolate; the caffeine in these elevates heart rate and blood pressure, both of which are stress symptoms.

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How do the business schools compare? Across all schools, at least 26% of students report a negative impact on their diet, and this goes up to 71% in the worst case. The full results are as follows:

Negative Impact on Diet (average = 48%) Highest impact UKZN GIBS, Rhodes, Milpark (71%) (63%)

Very Negative Impact on Diet (average = 15%)

UKZN GIBS Milpark

(30%) (23%) (21%)

Lowest impact Henley UCT UFS, Mancosa (26%) (34%) (35%) Henley Mancosa UCT, UFS (1%) (2%) (7%)

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15.7 How did studying for the MBA impact exercise levels?
Exercise is an excellent stress reliever, so we might hope that MBA students increase or at least maintain their exercise levels in order to counter the negative effects of the increased stress. In fact, the opposite is true – respondents reported a negative impact on their levels of exercise as well. This was likely to make them feel the effects of stress and diet even more. The results are shown in Figure 15.7. When asked how studying for the MBA impacted their exercise levels, 22% reported a very negative impact, with a further 36% reporting a somewhat negative impact.

22% reported a very negative impact on their exercise levels, with a further 36% reporting a somewhat negative impact.

How did you feel the MBA affected your EXERCISE LEVELS while you were studying?

ALL (n=1707)
40% 36% 35%

30% 27% 25%

% of sample
20%

22%

15%
10%

10%

5%

4% 2%

0% Very positive impact Somewhat positive impact No impact Somewhat negative impact Very negative impact Not applicable

AVERAGE RESPONSE

Figure 15.7

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How do the business schools compare? Across all schools, nearly half of students report a negative impact on their exercise levels, and this goes up to 76% in the worst case. The full results are as follows:

Negative Impact Exercise Levels (average = 58%) Highest impact GIBS UKZN Milpark Lowest impact UCT Regent Henley (42%) (46%) (48%) (76%) (68%) (63%)

Very Negative Impact on Exercise Levels (average = 22%)

UKZN GIBS, Milpark

(39%) (32%)

UCT Henley, Mancosa

(8%) (12%)

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15.8 How did studying for the MBA impact sleep?
The amount of sleep is likely to be negatively affected in two ways – firstly, due to the impact of increased stress, and secondly, due to the time pressure and huge work-load that MBA students are exposed to. Indeed, respondents reported that their sleep was badly affected. The results are shown in Figure 15.8. When asked how studying for the MBA impacted their sleep, 33% reported a very negative impact, with a further 49% reporting a somewhat negative impact. Only 18% of respondents were able to escape the negative impact on their sleep patterns. "[What I didn’t like about the MBA was] lack of sleep - but this was also part of the challenge" (MBA Graduate 1991, UCT) "The late nights, usually accompanied by a few drinks at the end, were tiring." (MBA Graduate 1992, WBS)

33% reported a very negative impact on their sleep, with a further 49% reporting a somewhat negative impact.

How did you feel the MBA affected the amount of SLEEP you got while you were studying?

ALL (n=1704)
60%

50%

49%

40%

% of sample
30%

33%

20% 16%

10% 2% Somewhat positive impact No impact Somewhat negative impact Very negative impact

1% 0% Very positive impact

0% Not applicable

AVERAGE RESPONSE

Figure 15.8

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How do the business schools compare? Across all schools, at least 75% of students report a negative impact on their sleep, and this goes up to 89% in the worst case. The full results are as follows:

Negative Impact on Sleep (average = 82%) Highest impact Mancosa Rhodes, Milpark (89%) (88%)

Very Negative Impact on Sleep (average = 33%)

Rhodes UKZN Milpark

(50%) (44%) (42%)

Lowest impact UCT, USB NWU Potch (75%) (77%) Henley UCT, USB (23%) (24%)

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15.9 How did studying for the MBA impact recreation and hobbies?
When people are short on time, they need to make sacrifices in some area of their lives. Generally, making time for family and friends would be a high priority, and so we might expect that a lower priority activity such as participation in recreation or hobbies would suffer. In fact, this is exactly what happened. Time spent on recreation or hobbies was the worst affected of all the factors discussed thus far. The results are shown in Figure 15.9 below.
How did you feel the MBA affected your participation in HOBBIES/RECREATION while you were studying?

ALL (n=1700)
45% 41% 42%

40%
35% 30%

% of sample 25%
20% 15% 12% 10% 5% 1% 0% Very positive impact Somewhat positive impact No impact Somewhat negative impact Very negative impact Not applicable

3% 1%

AVERAGE RESPONSE

Figure 15.9

Time spent on recreation or hobbies was the worst affected of all the factors discussed thus far. 42% reported a very negative impact on their hobbies / recreation, with a further 41% reporting a somewhat negative impact.

When asked how studying for the MBA impacted their participation in recreation or hobbies, 42% reported a very negative impact, with a further 41% reporting a somewhat negative impact. Only 16% of respondents were able to escape the negative impact on their recreation or hobbies. "Lack of spare time. Studies took up all spare time." (MBA Graduate 2008, NMMU) "[I didn’t like] the amount of time taken to complete the course. We had lectures every night of the week and for one morning on the week-end. This was a huge sacrifice ...." (MBA Graduate 2011, UKZN)

"It did mean putting extended family, friends and hobbies on hold for a year." (MBA Graduate 1991, UCT)

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How do the business schools compare? Across all schools, at least 76% of students report a negative impact on their participation in recreation or hobbies, and this goes up to 92% in the worst case. The full results are as follows:

Negative Impact on Recreation/Hobbies (average = 84%) Highest impact GIBS, NWU Potch UKZN (92%) (88%)

Very Negative Impact on Recreation/Hobbies (average = 42%)

GIBS UKZN Rhodes

(57%) (52%) (50%)

Lowest impact Regent NMMU Henley, WBS Rhodes, (76%) (80%) UCT, (81%) Henley Mancosa, Regent (33%) (34%)

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15.10 How the MBA impacts on your personal life
Only 3% of MBA students escaped a negative impact in at least one of these areas. On average, students can expect to experience problems in 5 of the 9 areas. A new MBA student can also expect to experience a very negative impact in at least one area (as reported by 62% of respondents). Those that do, on average, experienced a very negative impact in between 2 and 3 areas.
In the previous sections, we examined how the MBA impacted people’s personal lives in the following nine areas:          Marriage/romantic relationship Sex life Relationship with friends and family Stress levels Health Diet Exercise Amount of Sleep Participation in recreation or hobbies

In practice, many of these are related to each other. For example, increased stress impacts on diet, health and sleep. It also has a negative impact on personal relationships. Many areas are also affected by time pressure caused by the MBA studies. Only 3% of MBA students escaped a negative impact in at least one of these areas. On average, students can expect to experience problems in 5 of the 9 areas. A new MBA student can also expect to experience a very negative impact in at least one area (as reported by 62% of respondents). Those that do, on average, experienced a very negative impact in between 2 and 3 areas.

Clearly, studying for an MBA results in some real sacrifices in one’s personal life. While the end results might be worth it, the process itself can sometimes be painful.

15.10.1 How do different demographic groups experience the impact on their personal lives?

Current MBA students report a greater negative impact on their personal lives than that felt by graduates while they were studying.

Understandably, current MBA students report a greater negative impact on their personal lives than that felt by graduates while they were studying (see Figure 15.10). In fact, the longer the period since study, the less the perceived negative impact on personal life. For example, consider Figure 15.11 which shows that as the period of time since completing the MBA increases, so the negative impact on health lessens. A similar pattern is observed for age. One explanation for this is that people may tend to forget (or minimize) the pain they went through when they studied in the past – and the longer ago this was in the past, they greater is this dulled memory. An alternative explanation is that the MBA has become more demanding in recent years, with a corresponding greater impact on students’ personal lives.

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Figure 15.10

How did you feel the MBA affected your HEALTH while you were studying? (the chart shows the % who answered: 'Somewhat negative impact' & 'Very negative impact')
50%
46% 45% 40%

36%
35% 30%

37%

27% 23%

% in sample 25%
20% 15% 10% 5% 0% ALL (n=1707) Current MBA student (n=557) Within last 5 years (n=578) 5-10 years ago (n=229)

More than 10 years ago (n=269)

How long ago did you finish your MBA?
Figure 15.11

As the level of management increases, so the impact on personal life also tends to decrease.

As the level of management increases, so the impact on personal life also tends to decrease. In fact, those on the lowest salary scale, the negative impact is greater than average in all areas (see Figure 15.12).

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ALL

SUB-GROUP = Demographics: Current Remuneration: Less than R450 000 (n=85)

89% 84%

89%
82%

% of the sample experiencing a negative impact

81% 82%

71%

59%

58% 59% 48%

56%

56% 48% 45% 42% 36% 45%

Hobbies / Recreation

Sleep

Stress Levels Friends / Family Exercise Levels

Diet

Relationship / Marriage

Sex Life

Health

Those who ran their own business during their MBA studies experienced less impact on their personal lives than others.

Figure 15.12

Those who ran their own business during their MBA studies experienced less impact on their personal lives than others (in all areas except impact on health).

Figure 15.13

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Females were particularly negatively affected in the areas of diet and health. Coloured students experienced a greater negative impact on their personal lives than others.

Females were particularly negatively affected in the areas of diet (61% vs. 43% for males) and health (43% vs 34% for males). In terms of population group, Coloured students experienced a greater negative impact on their personal lives than other students (Figure 15.14).

Figure 15.14

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16. Do business schools continue to impact students’ lives after the MBA?
We’ve seen that the knowledge gained during the MBA continues to impact people in their career, outlook on life, etc. long after the MBA has been completed. Once the MBA is finished, graduates often report that they miss the intellectual stimulation, and the high-level interactions with fellow students. In this section, we find out whether or not graduates think business schools should be stepping in to fill this gap. We also examine how effective the schools are in this area. We asked respondents how important it is that their business school:         hosts business events lets them know about business events communicates with them regularly provides them with networking opportunities helps them access MBA-level job opportunities helps them keep their business knowledge up-to-date helps them start or grow their business helps them build their personal brand

The results are displayed in Figure 16.1, where the green line shows the average score on a scale of 0 to 10 (with 0 representing ‘Not important at all’ and 10 representing ‘Very important’). We also asked graduates how effective their business schools are in each of these alumni activities. Again, we obtained a score on a 0-10 scale in each of these areas (with 0 representing ‘Very ineffective’ and 10 representing ‘Very effective’). The scores here are shown in blue in Figure 16.1.

The most important alumni activity is for business schools to help keep the business knowledge of their alumni up-to-date. Unfortunately, the schools are not seen to be very effective in this activity. The business schools are also not very effective in providing graduates with networking opportunities, something which is important to them.

The results show that the most important alumni activity is for business schools to help keep the business knowledge of their alumni up-to-date (score of 8.5/10). Unfortunately, the schools are not seen to be very effective in this activity (score of 5.5/10). The business schools are also not very effective in providing graduates with networking opportunities (5.8), something which is important to them (7.7). "Having a greater network where grads can find work and opportunities from the external business world through relationships established through the schools" (MBA Graduate 2011)

"Encourage and help students to network amongst each other more." (MBA Graduate 2011) "I would DEFINITELY change the way interaction takes place, with a specific focus on greater networking abilities, both within the school and outside of the school with other institutions. I feel that all South African schools are very poor at networking and can take a massive leaf out of how American schools operate in this regard." (MBA Graduate 2011)

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Very important

10

10

Very effective

8.5 7.7

7.6 7.7

7.8 7.4 7.6 7.5 7.4 Somewhat effective

5.8 5.5 6.2 5.4 4.1 4.2 4.2 I don't know / unable to answer

Somewhat important

Quite ineffective

IMPORTANCE: After your MBA, how important is it to you that your business school ... Not important at all 0

EFFECTIVENESS: Now that you've completed your MBA, how effective is your business school at ... 0

HELPS YOU KEEP PROVIDES YOU LETS YOU KNOW COMMUNICATES HOSTS BUSINESS HELPS YOU HELPS YOU BUILD HELPS YOU START YOUR WITH ABOUT BUSINESS WIITH YOU EVENTS ACCESS MBA- YOUR PERSONAL OR GROW YOUR KNOWLEDGE UP- NETWORKING EVENTS REGULARLY LEVEL JOB BRAND BUSINESS TO-DATE OPPORTUNITIES OPPORTUNITIES

Very ineffective

Figure 16.1

The schools are particularly weak in helping graduates access MBA-level job opportunities, another area which is important to graduates. Schools are also weak at helping graduates start and grow their businesses, and helping them build their personal brands. Business schools are somewhat effective in hosting business events, letting graduates know about business events, and communicating regularly with their graduates. These activities are all important to the graduates.

The schools are particularly weak in helping graduates access MBA-level job opportunities (4.1), another area which is important to graduates (7.4). "Completely ineffectual job/career placement program - the school's ability in this regard was amateurish, embarrassing and very disappointing." (MBA Graduate, 2006) "Stronger exposure to head hunters and placements were anticipated including access to past (successful) alumni which to date has been unavailable en masse." (MBA Graduate 2005) "I felt that not enough emphasis was placed on a career post-MBA. Although companies did come and pitch to students, there should have been career days/workshops even talks from alumni on careers. This was something my classmates and I neglected until it was too late." (MBA Graduate 2010)

"I think a lot more effort could be placed on recruitment drives and career guidance. A large portion of the class was looking to make some sort of career change." (MBA Graduate 2004)

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Schools are weak at helping graduates start and grow their businesses (4.2), and helping them build their personal brands (4.2). They are somewhat effective in hosting business events, letting graduates know about business events, and communicating regularly with their graduates. These activities are all important to the graduates (scores between 7.5 and 7.7).

Graduates would like business schools to continue having an impact on their lives once the MBA is finished, but the schools are largely failing to meet these expectations.

It seems that graduates would like business schools to continue having an impact on their lives once the MBA is finished, but the schools are largely failing to meet these expectations.

How do the business schools compare?

Schools with the highest effectiveness scores with regard to alumni activities (on a scale of 0-10, with 0 representing ‘Very Effective’ and 10 representing ‘Very Ineffective’) Helps keep business knowledge up-to-date (average = 5.5) USB GIBS UFS, Henley (7.2) (7.1) (6.5) Provides networking opportunities (average = 5.8) UFS GIBS USB (7.3) (7.2) (6.8) Informs about business Hosts business events events (average = 7.4) (average = 7.6) USB UFS UKZN (9.0) (8.9) (8.8) GIBS USB Henley (9.1) (8.5) (8.2)

Communicates regularly Helps access MBA-level jobs (average = 7.8) (average = 4.1) UFS USB UCT (9.2) (9.1) (8.8) UKZN UFS (6.7) (6.2)

Helps build personal brand (average = 4.2) UFS GIBS UKZN (5.2) (5.1) (4.7)

Helps start or grow business (average = 4.2) UFS USB, UKZN (5.2) (4.8)

USB, Regent (4.6)

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17.

What didn’t you like about the MBA ?

We previously asked respondents what they liked most about their MBA. To create some balance, we also asked respondents what they didn’t like about the MBA, and what they would change. The responses to this question were captured as open-ended free responses. In total, we received 1,335 responses which were carefully read and tagged according to the main theme of the response. In total, 86 themes were identified, though only 39 of these were mentioned by more than 1% of the respondents. Apart from the odd light-hearted response that they would change the coffee, or that their business school fed them too well, the most common themes are discussed below.

We received 1,335 openended responses to the question about what people didn’t like about the MBA.

17.1 Theme 1: Wouldn’t Change Anything (mentioned in 25% of responses)
By far the most popular response was that nothing about the MBA should be changed.

By far the most popular response was that nothing about the MBA should be changed.

"Cannot think of anything I would change. The MBA is a full-rounded programme focused on every aspect of business leadership." (MBA Graduate 2009, NWU Potch)

How do the business schools compare? Schools with the highest percentage of respondents saying they wouldn’t change anything about the MBA (25% across the whole sample) include:

Schools with the highest % of mentions that they wouldn’t change anything (average = 25%) UFS Henley NMMU, NWU Potch, UCT (40%) (34%) (33%)

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17.2 Theme 2: Too Much Work (mentioned in 12% of responses)
Many MBA students felt the work-load was too high, and the course was too timeconsuming. "The amount of work!! Too much work in so little time." (Current MBA Student, Milpark)

Many MBA students felt the work-load was too high, and the course was too time-consuming.

"Punishing work load." (MBA Graduate 1971, UCT) "The amount of work load for senior managers and executives doing this part time is overwhelming given the amount of work already carried out at the workplace." (Current MBA Student, UCT) Many respondents felt that the work-load reduced the benefits they could otherwise have derived from the course content. "Too much pressure. Too many subjects squeezed into too little time, so you end up just aiming for 50 percent in each subject just to pass. Which means you end up wasting your time and money because you do everything only half-_ _ _." (MBA Graduate 2008, USB) "Work load that required constant running at full tilt - there wasn't enough time to absorb and learn by exploring and making connections. The pressure cooker was jam packed! There was a heavy emphasis on business basics (which was necessary) and too little time for developing a higher order understanding. It took me at least 15 years of working afterwards to really integrate and make sense of the content and reap the benefit of it. I acquired "know-what" on the MBA and had to learn "knowhow" from experience and other forms of education." (MBA Graduate 1988, WBS)

"It was at times too intense and stressful which can have a negative impact on learning.” (MBA Graduate 2010, USB)

The possibility of buckling under the work-load and pressure is very real, and prospective students should be prepared for this possibility. To exacerbate the problem, some students felt that the schools themselves did very little to help12: "At some point I became despondent and wanted to drop out. The student support in this regard is non-existent unless you actually commit yourself to dropping out. At this point lectures avail themselves to uplift the mind-set with words of encouragement. My view on this is that a more proactive approach is needed so the mind-set does not reach that threshold of despondency." (MBA Graduate 2011)

12

Unfortunately we couldn’t explore this point in more detail since the survivorship bias (mentioned in an earlier section) means that MBA drop-outs would be severely underrepresented in the sample.

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17.3 Theme 3: Too Fast-Paced (mentioned in 10% of responses)
Many MBA students also felt that the pace of the degree was too fast, with insufficient time to reflect on lessons learned.
Many MBA students also felt that the pace of the degree was too fast, with insufficient time to reflect on lessons learned. "The fast pace of the programme betrays the purpose of learning. There is need for more time to reflect on what one has learnt." (MBA Graduate 2011, GIBS) "I felt that the qualification was rushed and did not appreciate that, although I do understand the importance of having to deal with time constraints, goals and deadlines. But I came to learn, not to time manage." (Current MBA Student, NMMU)

"I wish I had more time to really get into the detail a bit more, but being rushed and pushed to the limit does not always allow for this." (Current MBA Student, USB)

17.4 Theme 4: Weak Lecturers/Courses (mentioned in 10% of responses)
In many cases, students felt that certain lecturers or tutors were weak. There was also a general desire for more guest lecturers active in the business world (as opposed to academics with little practical experience). Students also mentioned that the course content is sometimes weak. The courses mentioned most often were Marketing, Statistics and IT. Other students felt some of the courses were outdated.
In many cases, students felt that certain lecturers or tutors were weak. There was also a general desire for more guest lecturers active in the business world (as opposed to academics with little practical experience). "Certain lecturers, that are known to be brilliant in their fields of study, did not necessarily know how to convey their knowledge" (Current MBA Student)

"Don't tolerate bad quality faculty. To be fair there aren't many, but a business school needs a Dean capable of making tough decisions" (MBA Graduate 2004)

Students also mentioned that the course content is sometimes weak. The courses mentioned most often were Marketing, Statistics and IT. Other students felt some of the courses were outdated. "Lack of current thinking to deal with the change face of the business world." (Current MBA Student)

"Offer a bigger variety of electives that are more relevant to the changing business needs as brought on by the electronic world. Business needs are changing yet some MBAs are stuck with "old" subjects." (MBA Graduate 2005)

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17.5 Theme 5: Application to Business (mentioned in 6% of responses)
Some students felt that courses were too theoretical and they either found it difficult to apply the principles in practice, or the content had little practical relevance. Many mentioned that there was a distinct lack of South African focus, with most business schools relying on international case studies and study material.
Some students felt that courses were too theoretical and they either found it difficult to apply the principles in practice, or the content had little practical relevance. In addition, many mentioned that there was a distinct lack of South African focus, with most business schools relying on international case studies and study material. "I'm not sure how practical it all was - it felt like I couldn't apply much of the theory afterwards - even though I had done well at it." (MBA Graduate 2007) "We need an MBA that is responsive to current global social/economic challenges." (MBA Graduate) "The MBA only focuses on corporate environments but little is paid attention is paid to government and social responsibility sectors. These latter 2 are in need of proper management skills - more focus must be paid here" (Current MBA Student) We’ve seen in a previous section that many students appreciated the holistic understanding of business that the MBA provided. However, many other students felt that this understanding is actually somewhat superficial and can give a false sense of confidence in the applicability of the knowledge to the real world: "Business Cases are not a true reflection of real world business problems, and if you do not have many years of real world business experience, you may land up thinking that solving real world challenges are akin to solving business cases, and this will create a false and superficial view of the world, and introduce risk and failure." (MBA Graduate 2004) Unfortunately, the lack of depth in most subjects is a direct consequence of the need to cover a broad knowledge base. Time constraints simply do not allow for an in-depth exploration of any single topic: "It was too wide in scope and not detailed enough to be of any real value" (MBA Graduate 1997) "A bit superficial - master of none" (MBA Graduate) "The lack of depth in most subjects because of the sheer volume.” (MBA Graduate 2011) Of course, the business schools face a significant challenge in that students have varying levels of knowledge and experience in the different subjects, reflecting their diverse backgrounds. This can lead to frustration for students who feel the course is pitched too low. On the other hand, those with little or no experience in that subject often felt frustration at being left behind. A number of students mentioned that the lecturers failed to achieve that important balance between the two extremes.

Some students felt that the broad nature of the MBA means that it provides a superficial understanding of topics and can give a false sense of confidence in the applicability of the knowledge to the real world.

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17.6 Theme 6: Poor Administration (mentioned in 6% of responses)
A number of students felt that poor administration by their business school impacted negatively on the experience. Poor communication from the school was also mentioned as a problem. Ironically, a number of respondents noted a disconnect between the cutting-edge business thinking proposed in the course content and the way the schools themselves were run.
A number of students felt that poor administration by their business school impacted negatively on the experience. Poor communication from the school was also mentioned as a problem. "The old-school mentality that this is the way it should be done and therefore no or very little change will occur." (MBA Graduate 2009) Ironically, a number of respondents noted a disconnect between the cutting-edge business thinking proposed in the course content and the way the schools themselves were run. "Did not live their teachings" (MBA Graduate 2000)

"Perhaps a bit dictatorial. I would encourage more participation from students when it comes to decision making (or at least give students a platform to express their views)." (Current MBA Student) A fairly common complaint was that the administration department of the business schools treated students poorly or inappropriately: "The orientation period was a bit too military in operation - for an adult with a successful career it was a bit much to swallow!" (MBA Graduate 1987)

"The administration was not professional enough. It almost felt as though I was back at school." (MBA Graduate 2011)

"Treat students as MBA's and not as any other student." (MBA Graduate 2011)

17.7 Theme 7: Research Project Issues (mentioned in 5% of responses)
Some students had issues with the research project component of the MBA degree.
Some students had issues with the research project component of the MBA degree. These students felt the project starts too late into the course, often with insufficient support and little or no interaction with the supervisor. A number felt that the research project had little relevance or practical application in business, and should be removed from the MBA course.

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17.8 Theme 8: Frustrations with Group Work (mentioned in 4% of responses)
Group or syndicate work was a source of great frustration for many students. The frustration was mainly due to the inequitable sharing of the workload in the groups.
We’ve seen previously that group or syndicate work was one of the things that people liked most about the MBA. However, it was also a source of great frustration for many students. "It's not an easy year and I found the group work aspect of the course by far the most trying, but I appreciate that this is an important part of the learning that the course offers." (MBA Graduate 2010) "I hated group work. We were put into groups with people who I would never hire to work in my company." (MBA Graduate 2010)

The frustration was mainly due to the inequitable sharing of the workload in the groups: "Syndicate work - on the whole is brilliant - but the way in which each member is accorded marks needs to be changed as too many non-performers get to enjoy the fruits of the hard labour of others." (Current MBA Student) "The group work became frustrating as there were always free riders that needed to be managed and who did not have the same desire to succeed / competitive desire" (MBA Graduate 2007) "Team members that do not contribute are passengers. These people compromise your performance!!" (Current MBA Student) "Too much dead wood in the syndicates, you always have at least two people who take a free ride." (MBA Graduate 2011) Although working in different syndicates is good from an experience point of view in dealing with good and bad people, in the real world non-contributors could be fired unfortunately their discovery comes too late before the groups change and that person becomes another syndicate’s problem. I would create a blacklist group for those non-contributors so they can stress each other out or drop out instead of adding to the stress levels of hard workers." (MBA Graduate 2010) Some people were frustrated with the behaviour of others in the classroom environment: "Sometimes unnecessary arguments are generated by younger people who still want to be heard and to show off, being childish … some people didn’t have work experience and they would like to ask irrelevant questions and thus wasted time" (MBA Graduate 2012)

"I didn't enjoy pettiness among certain members of the classes. In the real world that behaviour results in tangible repercussions that should be matched in the learning environment." (MBA Graduate 2006) Page 126
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17.9 Theme 9: Behind the Curve (mentioned in 3% of responses)
Some students felt that the MBA course was failing to keep up with the changing times. In addition, a common complaint was that the use of exams as the primary assessment method was outdated or inappropriate.
Some students felt that the MBA course was failing to keep up with the changing times. For example, there is very little use of e-learning tools, social media, technology such as tablets instead of paper-based course packs, etc.

In addition, a very common complaint was that the use of exams as the primary assessment method was outdated or inappropriate. "The regurgitation of information with exams is outdated." (Current MBA Student)

"I don't that believe that passing a 1 hour exam makes you a good or bad leader." (MBA Graduate)

“[I didn’t like] handwritten exams (failed a couple just because my handwriting is bad)” (MBA Graduate)

Alternative suggestions included the use of the internet as a resource in answering questions (like in the real world), open-book assessment methods, greater weight to be placed on assignments, continuous assessments rather than a single evaluation, and the ability to write exams on laptops rather than with a pen and paper.

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18.

Conclusion
In this report, we answered the question: "Should I do an MBA or not?" We expanded the focus beyond just the impact that the degree has on one's career and financial remuneration. We considered other important areas which have a real impact, but which have not been properly explored before. We included the impact on personal life, the network, outlook on life, and so on. The primary aim was to provide a holistic and well-balanced view of MBA student's and alumni's perceptions of the overall value and impact of the MBA degree. As a secondary question, we also explored how the perceptions of the students and alumni differ according to business school, based on the different variables that we explored. Schools performed better in some areas than others. The reader should be able to make a fully informed assessment of whether or not do an MBA, incorporating all the factors that might come into that decision. The reader should also be in a position to assess which of the accredited South African business schools are strongest in those areas of greatest importance to the reader (based on the perceptions of the students that actually studied there). The broad conclusion is that the MBA offers tremendous benefits to those who complete it, but this entails significant sacrifices in the short term. As one student put it: "I am enjoying every minute even though the sacrifices are great." (Current MBA Student, GIBS)

We trust you found the report useful and informative.

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