Graduate School Advice for my Sons…
I have two boys. The elder graduated from Penn this past May and landed a fantastic job in Boston. The younger is a junior at George Washington and appears to be on a well-designed path towards success… I’m keeping my fingers crossed. Both say they plan to attend graduate school at some point in their future. I support them. I earned an MBA early in my career, and it played a pivotal role in my successful, fulfilling career.
The advice I’m sharing?
My alma mater, the University of Chicago Booth School of Business, is currently estimated to cost $103,759 per year… $69,200 for tuition alone. And, of course, it takes two years for a total cost of $207,518 (tuition $138,400). And then there’s the opportunity cost of not earning a salary during those two years — say $70,000 per year x 2 years = $140,000. So, by the time my boys graduate with a top tier MBA, they’re $350,000 in the hole. And if they decide to go to law school? That’s three years at those prices…more than a half million dollars!
Now far be it from me to criticize my alma mater, but the payback on $350,000 of education is less obvious today than it was back when I matriculated. Why? Because the cost of higher education has risen at a far faster pace than salaries over the past decades. There’s still the potential for tremendous payback from a top tier MBA (depending on what you do with it), but it’s not as obvious as it used to be.
I’m currently enrolled to obtain a Masters in Internet Business (MIB) degree from ISDI Digital University. It’s a 9-month program that teaches everything I need to know to manage a company through digital transformation… a rare and valuable skill.
Fortune 500 companies are flailing for lack of senior management with this knowledge. Consulting firms struggle to hire enough employees with these skills to satiate the demand from clients who require assistance with their digital transformation strategy. ISDI offers “in-person” master’s degrees for $27,500, or an online degree for $14,500… and you’re done in nine months (albeit a pretty intense nine months).
The post-graduation payback for an ISDI MIB is currently unknown in the US. The program started in Spain in 2009 and has documented an impressive track record for post-graduate employment and salary advancement. But my class is the first in the US, so the payback is yet to be calculated. But payback on a $27,500 MIB (held at night so you can work during the day) is a lot easier to comprehend than the payback on the $350,000 MBA.
Admittedly, not all MBA’s cost $350,000, and there are evening/weekend MBA programs that allow you to obtain the degree while continuing to work… avoiding the opportunity costs. Even so, no MBA that I can find is priced near the ISDI $27,500… the MIB is a pretty darn good value.
Now, an MIB isn’t an MBA. Both are masters-level programs that teach valuable skills. The MBA is far better if you want the basics of business — strategy, accounting, finance, marketing, logistics, etc. It teaches you how to think… how to approach a business case. It will give you the foundational knowledge that’s required for advancement to senior management or to own your own business.
Alternatively, the MIB is far better if you want to understand how emerging technologies are affecting today’s business community, and learn how to reposition a company for success in the digital age. If you want a career in digital, the MIB is definitely the way to go. And keep in mind there are a plethora of people with MBA’s out there. An MBA will differentiate you from some, but in no way makes you unique. An MIB, on the other hand, is a scarce commodity.
Since I have an MBA, people ask me which degree I think is more valuable. Honestly, this is an impossible question to answer. It’s like asking — Which is more useful to you, your home or your car? My home and my car are useful to me in totally different ways… I wouldn’t want to live without either one.
If you twisted my arm and forced me to choose, I’d say my MBA is more valuable to me than the MIB. But remember, I’m getting the MIB because I didn’t think the MBA was sufficient for me to succeed in today’s digital world. The truth is, I think you need both.
Now, I want my boys to pursue a career that will allow them to succeed and be happy. I’ll support them whether they choose a PhD, MBA, MIB, JD, or any other type of advanced degree. I’ll also support them if they choose not to pursue an advanced degree at all. But you can bet I’ll bring the ISDI MIB to their attention since it’s a comparative value… like getting a Porsche for the price of Chevy. And depending on their desired career objectives, the knowledge from the MIB could be more valuable…especially here in Silicon Valley.
So, my advice to my boys? Pursue your dreams; a graduate degree will likely help you advance and achieve those dreams; and don’t make the decision based on price. I was accepted to less prestigious business schools that were less money, but I still chose the University of Chicago… and I’ve never regretted that decision. But if cost is a major factor in your decision, as it is for many, the MIB from ISDI is the best value in the relevant set of choices.
And please, boys, keep it all in perspective. In the long run good health, friends, family, and happiness are all more important than which graduate school you choose. So, don’t fret too much over it.
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