Just accepted to Indiana MBA - need advice

Has anybody attended Indiana U's Distance Learning Program?

Hello all... I've been a 'lurker' and have benefited from all of the postings about Distance Learning MBAs. Thank you for the help so far. Has anyone attended IU's Distance MBA Program? I was wondering if anybody had any opinions...

I was just accepted to Indiana's Kelley School of Management. I wasn't too worried about getting in (got a 710 on my GMAT and have an Undergrad from Notre Dame.) I was wondering what people's thoughts where on the ROI (return on investment) of going to IU. Here is some information:

1) I calculated the total cost (travel, books, tuition, etc.) for the program and it came out to $40,000 for the whole program.
2) I am working on getting my current employer to help pay, but I know they won't cover it all.
3) I currenlty make $80k. (The reason I am getting my MBA is to be able to switch careers without having to take a huge paycut and also for job security later in life.)
4) I will end up living in the MidWest in about one year and like Indiana's Tier1 status.
5) I was also accepted to ASU and plan on being accepted to University of Florida in December.

 

I have two B&M degrees from IU and would not trade them. It is a school with an outstanding and solid reputation. I am not familiar with this DL program, but wish you luck.

 

Thanks Tom for the response...

Anybody else have any opinions?

 

Do I think it's worth it? Absolutely, especially if an employee will pay.

Long run I think you'll be way ahead. I gave up a $120k/yr job to spend one year finishing my undergrad and 2 years getting an MBA so I hope I'm right!

I saw some numbers a while back that showed how 1992 Harvard MBA grads are doing now. $400k was the average pay they were pulling in 10 years later (2002). Not bad.

 

To some extent you can do a rough calculation yourself (ironically, exactly the sort of thing you learn in an MBA program).

You know the costs of the program. You can make an estimate of the salary increase the MBA might afford (or perhaps the salary reduction in changing careers - though as you say, it might be less with an MBA).

For it to be worthwhile, at some point, there should be a salary premium for having the MBA. US News publishes estimates of salaries for various MBA programs.

Think about a reasonable rate of interest that salary increases might be reinvested (assuming you reinvest the excess as opposed to spending it on vacations, cars etc.)

You can find the point at which the future increases in salary offset the cost of the MBA. If you're young enough, this occurs before you retire. Thus a positive NPV (a term you'll become sick of in an MBA program).

Don't forget to assume that the $40,000 you spend on the MBA (or whatever portion you end up paying) could be invested (profitably one assumes), and that this extends the time to break even.

Of course, there are intangibles that are impossible to assign numbers to, such as the satisfaction for having the MBA, and perhaps (as you say) the additional job security. These may have more sway than purely crunching numbers. I recommend taking a hard look at the curriculum and deciding whether it's stuff that you're really interested in. A lot of people become smitten with the "idea" of an MBA without any real thought into what, exactly, they will be studying, only to find out that they don't really like managerial econ, or endless case studies etc.

Finally does the Kelley program allow you to pick a concentration? If you're interested in pure management, or entrepreneurship, or quantitative finance, etc., can you specialize in those, or do you have to take a prescribed set of courses? This may be something to also weigh against Florida and ASU. Even though you have your sights on what life will be like after the MBA, you also want to maximize your chances for being happy while you're in the program. This has largely to do with what it is you'll be studying.

Good luck

 

Here are my two cents.

Between IU and ASU, i would go with ASU (though Indiana is a great school too.). I have heard soooo many great thijngs about ASU, and my mentor graduated from their. Threre seems to be a great deal of contacts that one gets from ASU.

Also, you didn't mention what career move you are making, what industry Do you want to teach?

 

ASU IF-and only if, you plan on being in the west coast. Otherwise stick with IU.
Remember, the point of the NPV calculation os to reckon opportunity cots and compare them.

To me, the point of the MBA is to generate opportunities on one wouldn't otherwise have. Therefore one gives up something (time, money) in order to improve both, either, or better types of work opportunities.

All of these can be enhanced by the path you've begun. Congratulations!

--Orson

 

Orson - Other than location, why would you pick IU over ASU?

A straight calculationis not as relevant as making a fit for a particular person.

Good luck - either way, you should do fine.

PS - I am from the west coast, so Orson may be right that I am biased. Not sure the thoughts of the east coast.

 

One of the important perks of B-school, and especially a name-brand B&M B-school, is the networking opps. If the alum aren't in the region of the school you went to, it won't help generate those bonus opps for you.

Han-you're not biased. I'm just cognizant of the regional realities.

A friend of mine had to choose between ASU and Minnesota for B-School. Since he was already from the latter area and establshed with Deloit and Touche, he chose Minnesota. If he'd wanted to re-locate to a differenct region, ASU would have made more sense.

--Orson

 

Thanks everybody for the responses - it was very helpful. I have been doing a lot of thinking about a MBA for quite some time and it is good to see that I was asking myself the same questions everybody else brought up here. I narrowed it down to IU, ASU, and UF because they are all Tier 1/2/3 schools. I also plan on settling down in either the Midwest (Michigan) or Florida which would give IU and UF it's advantages. ASU was in the mix because they are a 2nd tier school and I really liked their program (you take only one class at a time for 6 weeks, which appeals to me.) I think I have decided to accept the IU program, based on some of my own research, including ROI calculations. Also, Indiana is a Tier 1 school and, after speaking with some current students and administration, I like the program - though it is going to be a huge time commitement (the IU administration estimates 24-28 hours per week!) My biggest problem with Distance MBAs is that they don't offer any real post-graduate career placement services. The reason for this makes sense, since most corporations pay for or help pay for the education (they don't want to bite the hand that feeds them.) I guess I will have to make my own big push at that time.

Thanks again!

 

One thing I would point out about a distance learning or executive MBA versus a full-time program, especially with regard to your specific situation, is that it's really hard to be a "career changer" with an executive MBA program, precisely because of what you mentioned - that the school's career services office is basically closed to you. You won't have an opportunity to do an internship either, which is how a lot of MBA candidates find their post-MBA jobs.

My wife was in kind of the opposite situation from yours, she was accepted by a couple of top-30 full-time MBA programs (including Notre Dame's, by the way - we really enjoyed visiting South Bend and touring Mendoza), but ultimately decided to attend Duke's Cross-Continent Executive MBA, because she doesn't intend to leave her field once her MBA is done.

So my advice to you would be to consider a full-time program, even though it means giving up two years of salary, and possibly relocating. If you want to change careers, I think it will be in your favor to have an internship in your new field and the recruiting office on your side.

However, if you do decide to go the executive route, you have one nice thing in your favor, and I'm sure you know this already - the Notre Dame alumni network is a thing of wonder. Find some fellow Irish in the industry you want to end up in, and get them to make the contacts and introductions you need to break into your new field without the help you'd get from a full-time MBA program. Either way, good luck!

(By the way, if you decide to go the executive route, consider the Duke CC program - they're still accepting applications for the class entering in July, and I'm sure with your GMAT, you'd have no problem getting in.)

 

Fortunato,

Thanks for the response... I agree, a fulltime program would be a better choice for a career change, but I have huge problems giving up a $80,000 to $100,000 salary plus paying $50,000 - $100,000 for the degree to go fulltime. I am hoping to use the Notre Dame network, as you pointed out. My other strategy would be to join an organization much larger than my own which would allow me to move into the business-side of my industry (consulting/headhunting/recruiting.)

I would love to look at Duke (or U of Michigan), but I have problems with the ROI for schools that cost more than $100,000.

I'm glad you enjoyed visiting Notre Dame. I think the campus is beautiful, but it really is the people that make up the quality of the school. Most everybody I interacted with while going to ND were very genuine, nice, and thoughtful.

Thanks for the insight...

 

I agree with you, I don't think the ROI is there for giving up 2 years salary, and debt for the tuition. Especially being a mid-career, you will get a bit of a boost - maybe 15%, but not much more, if you are already making good money.

Go with an employer who reimburses, there are plenty out there, and some even pay for on site visits!!! That way you get a boost, the company gets an investmenet (you probably need to sign a statement saying you won't leave for X amount of years), and it is a real win/win. Good luck!

 

Employers paying up $100K for MBA?

Could someone please shed some light on specific employers that would pay for an employee to do a $100K MBA?

I know McKinsey does, but even Investment banks do not offer that sort of sponsorship as I understand it.

Or am I wrong?