Should Veterans Get an MBA?

The Immersion Experience: Business & Beyond?

For veterans, immersion is a familiar concept. Their military training constantly puts them in situations where they're deeply engrossed, be it learning new tactics or navigating complex foreign terrains. This deep immersion often facilitates the most effective learning experiences, just as if one was learning a new language. Similarly, in the business realm, success hinges on the principle of immersion. It demands a comprehensive understanding, an active identification of weak areas, and an unwavering dedication to self-study and improvement: a methodology not alien to veterans. Vets are conditioned to operate amidst ambiguity and uncertainty which makes them naturally adept in the business world.?

Elon Musk and the MBA Debate: A Closer Examination?

Elon Musk's comments about the "MBA-ization" of America, as shared with The Wall Street Journal [https://www.wsj.com/articles/elon-musk-decries-m-b-a-ization-of-america-11607548589], sparked widespread debates. While many, especially revered business school deans, took umbrage at his views, it presents a curious paradox. Elon Musk, with his groundbreaking ventures and innovative spirit, embodies the exact essence of leadership, foresight, and innovation that prestigious business institutions aim to cultivate. His perspective, while polarizing, brings forth essential questions about the evolving nature of business education and its real-world applicability. The proposition Elon brings forth regarding immersive experiences versus academics heavily applies to veterans transitioning out of the military and prompts the question - “Should I pursue an MBA?”??

The Insider's Perspective: Insight from Industry Stalwarts?

The question of whether veterans should pursue an MBA is not a straightforward one. Esteemed members of the business community, from senior partners at MBB firms to Managing Directors of influential mega-funds, Partners from niche hedge funds, and C-suite executives from billion-dollar conglomerates, have weighed in on this debate. A synthesis of their perspectives offers valuable insights. The overwhelming sentiment suggests that while an MBA is valuable, veterans, with their unique experiences and skill sets, are viewed favorably even without this degree.?

Rethinking the Necessity of an MBA for Veterans in Modern Times?

The corporate world is not static; it has seen tectonic shifts over the past two decades. If we rewind twenty years, an MBA was akin to a rite of passage for those transitioning from specialized roles, like the military, to more generic corporate positions. However, the narrative today is vastly different:?

• Dynamic Transition Opportunities: Today's veterans are not just transitioning; they're doing so with aplomb straight from the service. They're clinching roles at premier organizations such as McKinsey, Bain, and BCG (MBB), PE funds, bulge bracket banks, and even cutting-edge companies like Amazon, Google, SpaceX and Tesla, often within a mere five years post their military tenure.?
• The Rise of Digital Platforms: The digital age, spearheaded by platforms like LinkedIn, has subtly shifted the emphasis from traditional academic credentials to real-world skills, experience, and networking. These platforms also support networking opportunities that did not exist 20 years ago.??
• Understanding Industry Realities: The worlds of Private Equity/Venture Capital are enticing for veterans. However, veterans at Business school without previous finance/consulting experience find themselves vying for positions in these industries against seasoned professionals upon graduation. Therefore, veterans set on a particular industry (e.g., PE/VC) might be better served networking, leveraging their military experience, and going after desired jobs straight from the military. Simply put, experience at the junior level outweighs an additional two years of schooling.??
• Capitalizing on Unique Profiles: The business world is increasingly valuing diversity. Military experience, with its emphasis on leadership, discipline, and adaptability, is a prized asset thus making top tier jobs a reality straight out of the military.??
• Recency Bias can potentially overshadow prior accomplishments: One's reputation is often tied to their most recent accomplishments. If you hail from a reputable undergrad institution (e.g., Service Academies) and have garnered military experience, this combination can stand out more distinctively in the job market. To put this into perspective, consider the vast number of MBAs graduating annually – over 900 from Harvard alone, 4,500+ from the top 7 business schools (M7), and an even more staggering number from MBA programs worldwide. In such a saturated field, unique experiences combined with strong foundational education can make an individual particularly marketable. Thus, the extra data point on the resume may be unnecessary.?

Situations Where an MBA Might Be the Perfect Fit for Veterans?

While there are compelling reasons to challenge the necessity of an MBA for veterans, there are also scenarios where this degree can serve as a powerful catalyst. If the overarching goal encompasses deep introspection, skill enhancement, extensive networking, or even a significant career shift, the structured environment of B-school can indeed be the perfect launchpad.??

Example careers where an MBA makes sense: Private Wealth Management and Executive Search.??

?

The GI Bill: Best Option or Sunk Cost Fallacy??

“I put all this effort in to get my GI Bill… I feel like I should use it”?

This common sentiment among veterans underscores the value of the GI Bill. Possessing the GI Bill is undeniably an advantage. But its strategic deployment is paramount. An MBA, while financially facilitated by the GI Bill, demands a significant temporal investment. It's vital for veterans to weigh the time-versus-benefit dynamics critically. The 'sunk cost fallacy' beckons careful consideration — the mere possession of a benefit doesn't axiomatically dictate its optimal deployment.??

Pursuing an MBA just because the GI Bill is available, without it aligning with professional goals, might not be the best strategy. Decisions should be based on current objectives and the potential value added by such a degree, not merely the resources at hand.?

?

The Definitive Answer: Should Veterans Get an MBA??

Yes (with undefined aspirations): If vets view the MBA as not just a degree but a holistic experience. If the goal is deep introspection, a broadened perspective, enhanced skills, and a platform to pivot to a different career trajectory, then an MBA serves as an invaluable asset and a hedge.?

No (with clearly defined goals): If the aim is to transition into specific sectors like consulting, finance, or tech, especially considering the existence of veteran programs (not the case 10 years ago). Also, if the intent is to leverage existing skills and experiences directly into the corporate world, then the lengthy and expensive MBA journey might not provide a significantly higher advantage. If confident as to which industry to enter, one should consider exhausting all avenues of pursuing that particular role to gain experience prior to enrolling in B-school.??

?

Concluding Thoughts?

The decision for a veteran to pursue an MBA is layered with complexities. It's not just about the allure of the degree but about understanding one's career goals, personal aspirations, and the changing dynamics of the corporate world. The key lies in aligning one's goals with the opportunities and resources available and making a choice that paves the way for a fulfilling future.?

At Swaney Group, we value collaboration and a wide range of perspectives, welcoming partnerships with professionals at various educational levels, from undergraduate degrees to PhDs. Your insights are important to us, and we invite you to share your thoughts.?

Stay tuned for our 12-part series - “Breaking into Private Equity: A Veteran’s Guide”??

1. How Veterans’ Skills Translate to PE Operations (parts 1&2)?
2. Navigating the Transition: Key Steps for Veterans Entering PE?
3. Inside Operations: Understanding the Structure of a Private Equity Firm?
4. Case Study: Successful Veterans in PE?
5. Networking Strategies for Veterans in Finance?
6. Understanding PE: A Veteran’s Primer on Industry Basics?
7. How Resilience Supports PE Success?
8. Teamwork and Unit Cohesion: Military Lessons for PE Success?
9. Risk Assessment: Parallels Between Military Operations and PE?
10. Pathfinder 1: The Investment Banking Route?
11. Pathfinder 2: The Consulting Route?
12. Pathfinder 3: The Portfolio Asset Route??

?

?

?