An MBA is a very useful post-graduate degree to have and I am indebted to my business school. It improved my skills and knowledge in so many ways. I remember when I completed my MBA, I felt super confident and geared to face any challenge thrown at me.
But I realized later that there are many things not taught in a typical MBA. It takes a real-life experience to learn them.
Cash Flow
They teach the meaning and definition of cash flow in every MBA course. The general rule is to have more cash in hand or incoming cash than what is going out. Yet, in a real-life situation generating cash is a different ball game altogether. Cash flow may need to be sustained and micromanaged to the last detail.
Cash generation involves a high level of engagement with customers, including striking a good rapport and following up regularly with them.
They must feel that they are getting enough value for the money that they spend. This, in turn, will bring in repeat business and increase cash flow.
Sales
The general thinking is that spending money on advertisements will keep bringing in a lot of business. To some extent, customers do come in after seeing a good sales pitch. But the bulk of business comes from repeat customers who are happy with the product and service offered to them.
Clients responding to ads may not have tried your products or services when they contact you. What they expect is for their expectations to be exceeded beyond what they felt when they saw your ads.
Communication
Communication and interpersonal skills are necessary for achieving success in any position. In a business school, the diverse mix of students includes people from all over the world. Students might improve their communication skills in these diverse communities.
But companies have different age groups, both young and old. This makes a difference and hence it is important to be in a real-life environment. An employee with a year to go before retirement may have a different reason to be motivated. You can’t compare him with a young man who is just out of college.
Recruitment
It is a misconception that the recruiter’s job is over once the candidate is hired. Finding the right person is only the beginning. The challenge is in retaining the employee for the long-term, creating an asset for the company.
In the absence of a good retention strategy the recruitment process will need to be replicated again and again. The same amount of money spent on recruiting one employee will need to be spent again if the employee leaves within the next few months or a year.
Repeat recruitment costs money each time you hire again for the same position. You have to incur hiring expenses and for training the employee. Thus, it is important to hold on to employees and lose only those who are not a good fit for the company.
Profit & Loss
The emphasis in any company is on the amount of profit or loss that the company may incur. But you do not have to base everything on the financial aspect of the organization. The monetary aspect of running a company is only a small part of it.
More important is whether the employees give the best performance on their own.
- Are the employees thrilled working with the company?
- Does the company have good branding in the market?
- Will customers buy your company’s products or services again?
These are factors that matter more than mere profit and loss statements.
When in Rome Do as the Romans Do.
Every country has its traditions and mannerisms. No business school can teach the mannerisms that are followed the world over. It is something that comes only through travel and the experience of meeting people from different cultures.
For example, in Japan instead of shaking hands first, the proper way to greet another person is to bow down. There may be certain aspects looked upon as rude in many countries which may be normal in other parts of the world. You can only know this when you deal with people from those countries through first-hand experience.
Ethics
The question of ethics features high with customers when they look for suppliers and manufacturers. Ethics is a topic in every MBA, but is something that is learnt only by practicing it in real life. It is not something you can read out of a book and follow.
Inflating prices, not following through on promises, and ignoring refunds and guarantees are some of the unethical practices that are common.
Many companies compromise on ethics when they consider the large profits involved.
Humility
Humility is another aspect not taught in any business school. Looking at social media, especially Twitter, you can see the arrogance out in the open. Almost every day there’s a war of tweets between high profile business personalities on Twitter.
Arrogance is something that can be very harmful to any business. It is a difficult to teach humility in a classroom, but real-life experience is the biggest teacher.
Common courtesy is something taught by our parents during our childhood. Unfortunately, it is not emphasized enough in business schools.
Punctuality, personalization and being grateful are traits that any customer would appreciate.
IQ vs EQ
An IQ score is not the best measure of an employee’s real worth. Emotional intelligence or EQ is also a necessity to succeed in any work environment. This means the ability to understand your feelings and manage them in the right manner. This is something not taught in any book or business school.
Work-Life Balance
Another aspect that the schools do not dwell upon is how to manage work-life balance. A person’s career can be ruined if there is no proper work-life balance for extended periods of time. A proper work-life can make a big difference to an individual and enable him to give out his best.
Conclusion
An MBA can only teach you the theoretical aspects of business. The lessons that you learn on the job and through personal experiences are the most useful teachings — better than an MBA from the best business school.
Thanks for reading!
