MBAs: what can they do for your career?

pharmafile | September 25, 2009 | Feature | Business Services |  MBA, careers, training 

A few years ago, getting an MBA was rare enough to seem like an automatic passport to the executive suite. Today though – with 30,000 students on business masters courses in the UK alone – that ‘s no longer the case, as there simply aren ‘t enough top jobs to go round.

If you do decide to get an MBA, it ‘s the biggest investment in your future that you can make. Next year, Harvard will charge a married student $100,600 for the year. It also means taking one or two years out of your career essentially to take a bet on your future.

So is that bet going to pay off? A recent survey suggests that the current demand for MBA graduates has dipped. The 2009 Graduate Management Admissions Council Corporate Recruiters Survey, released in May, surveyed 2,825 hiring managers from 2,092 companies in 63 countries.

It revealed that recruiters expect to hire half the number of MBAs – six in 2009, down from 12 last year – and that the number of firms planning to hire MBAs this year declined 9% compared with 2008.

But this is almost certainly a reflection of the wider economic problems, and not a reaction against MBA graduates. The good news is that when they do hire MBAs, recruiters reported they plan to pay them nearly twice as much as college graduates, and 98% of survey respondents are satisfied with their MBAs.

And does it guarantee you a better job – or even any job? In the US job offers for graduates have held steady, but they have fallen outside the US. More research by GMAC shows that 57% of US citizens graduating from full-time MBA programmes at US schools had job offers in 2009, down just 7 points from last year ‘s 64%, but only 29% of non-US citizens at non-US schools had a job offer a few months before graduation, down from 54% in 2008.

So does the MBA matter in pharma? It seems to be no guarantee of a top job. Only two of the chief executives of the top ten pharma companies (Richard Clark of Merck and James Cornelius of BMS) hold MBAs.

MBAs aren ‘t as common in pharma as they are in other industries, and that doesn ‘t seem likely to change any time soon. Only 6% of the 2009 intake to Harvard Business School comes from the biotech and healthcare industries, while over half (58%) come from consulting and financial services. Healthcare and pharma between them account for about 12% of all employment, so MBAs are still under-represented in these industries.

So does the MBA really matter for pharma, and why? And does what you learn actually make a difference on the job? Pharmafocus spoke to six graduates from Cranfield School of Management ‘s class of 2000, who have all gone on to carve out successful careers in pharma: A chief executive, a head of strategy, a vice-president for product development, a marketer, a business analyst and a consultant. Three work for top 20 pharmas and three for smaller organisations.

The rationale behind MBAs

Graham Clarke, chief executive of UK biotech company ImmunoBiology thinks that it can provide a ‘finishing school ‘ for people moving into general management. He says: “Many people in pharma and biotech have science degrees to start with, but end up doing other jobs like management or marketing. The danger is that you are not adequately equipped to do ‘the next job ‘ so you are unsuccessful and your career then grinds to a halt. Getting an MBA is therefore great at helping you develop your career to that next job. It also helps label you as seeking to develop into commercial areas from science. “

David Falconer, vice-president of business and product development at Selexys, a development company focused on inflammation, agrees that it has value in helping you take the next step:

“Like many people, I used my MBA as a vehicle for switching from a narrow technical field into cross-functional management. Pharma success depends on efficient and effective collaboration between multiple technical and operational fields, and the MBA provides the tools and skills to excel in a matrix organisation. It allows specialists to stay in their areas of expertise and gain planning, leadership, organisational and oversight skills to excel in that area. It is also invaluable for scientists moving into senior and strategic management positions. “

David McKimm, marketing services manager at Johnson & Johnson, thinks the emphasis is more on personal development: “The common thread running through the choice to undertake an MBA is that it develops your mind further, grows you as a person (both personally and professionally) and should lead to you enhancing your career prospects as a result. “

Andrew Cioffi, senior international business analyst at Roche, believes the network plays a key role: “The MBA enables individuals to change industry or role through learning essential business skills and being able to tap into a vast network of alumni. “

Does an MBA mark you out for senior management, or it now just a tick-item for the ambitious?

Graham Clarke sees the MBA as an enabler rather than a passport: “When MBAs were rarer, it was more of a marker, but it is much less so now, and is more a tick-box. Possessing an MBA is not the only way to get a particular role, but it is a clear plus. Marketing, planning and business development are some other routes in.

“You should look at the MBA as an enabler to perform well in a job, as well as getting the job in the first place. Careers are not made by one move alone. It is competence in a job that tends to determine future opportunities. ‘

Andrew Cioffi thinks the effect is more subtle and reflect a positive attitude: “Surely it helps to show your ambition and skills which helps people to progress in their career. “

Julien de Salaberry, the Asia Pacific head of strategy and business for a top 10 pharma, agrees and says, “An MBA will definitely not mark you out for the top. They are increasingly becoming a minimum requirement for senior management roles, but are not essential. “

Pablo Kommisar, an independent consultant in commercial excellence based in Zurich, thinks there is more to it, though: “An MBA is too expensive and too energy consuming to be just a tick-item.

“It is not a walk in the park. It is a physical and intellectual challenge. An MBA provides a set of managerial skills but does not replace talent. As Michelangelo said: ‘Every block of stone has a statue inside it. It is the task of the sculptor to discover it¿ an MBA will help reveal the talent that is already there. ‘ “

Can MBAs make you a good all-round manager? Also, isn ‘t there a bias towards the specialism you start in (sales, marketing, R&D, medical)?

David Falconer says: “Absolutely not. The MBA course provides a tool set and starts to develop the skills to apply those tools, but the skills are developed and honed in the workplace through experience. The MBA does not guarantee development of an appropriate skill set. “

Julien de Salaberry says: “They don ‘t! It will depend on the student ‘s personal abilities, the chosen ‘majors ‘ and the school ‘s focus. For example, LBS is perceived as having a ‘finance ‘ focus whereas Cranfield has a more “general management ” bent. Schools are increasingly specialising to differentiate themselves. “

Just how good are they?

Julien de Salaberry says: “Like BAs or BScs, the standard of MBAs will vary from school to school. MBA courses are widely available these days which means most employers will differentiate between schools, usually by reputation or brand name.

“Prospective MBA students should take a similar approach, although they should select a school that has known faculty strength in a domain they wish to major in. There are a number of ranking tables worth referring to when deciding, although take care, as some of the measuring criteria are a little eclectic! “

Do MBAs have long-lasting value?

Julien de Salaberry says: “The principles learned on an MBA will remain valid for the rest of your career. However, you do need to remain up to date with new trends, approaches, improvements, etc which can be gained from a variety of sources. If you wish to specialise, then further business education is probably the right avenue. “

What do you learn?

Graham Clarke says: “You gain insights into facets of business that you haven ‘t previously encountered, so you are better prepared.

“It gives you a solid educational base in business plus some understanding on how it works in practice, largely from your fellow students, who all come from different backgrounds. Consolidating what you learn on the course and putting it into practice is absolutely critical in order to realise the benefits, so you need to make sure you go to the right role post-MBA. “

Julien de Salaberry says: “You generally learn skills in a broad range of business disciplines which you won ‘t always learn on the job, making you a more effective business manager. For example, a financial director doing an MBA would learn about marketing, HR, business law, and so on. You also build a new network of peers who will prove useful and helpful connections in your professional life thereafter. “

Andrew Cioffi says: “You learn business skills which include both theory like accounting principles and economics but also, more importantly, interpersonal skills which enable you to work more effectively in the corporate environment. “

David McKimm says: “It depends on the school you attend and on the objectives you set yourself before signing up. There are schools that are geared to finance, schools that are geared to more entrepreneurial activities, and schools that are more internationally acclaimed that look nice on a CV. All have their merits but you have to be brutally honest with yourself when you are deciding where to go. No one wants to make that investment of time and money lightly. “

Pablo Kommisar says: “If you go into management consulting, you would benefit greatly from structured thinking and problem-solving capabilities. “

What stage in your career is it best to do one?

Andrew Cioffi: “Best to do it after some work experience – 3 to 5 years – as it will then help you to choose the direction of your career. “

David McKimm says: “Once you have some experience of the real business world and can add some value and insight to your class discussions, usually after about 6 – 8 years of work time behind you. “

Julien de Salaberry says there is no optimum time to do an MBA: “It is certainly helpful when considering a career change or wanting to broaden your skills to accelerate career progression and/or broaden your horizons. MBAs should not be started for the sole purpose of moving into management or significantly increasing your salary. Having an MBA does not make you a manager! “

Is an MBA a must-have in pharma?

Andrew Cioffi says: “In today ‘s environment, an MBA will certainly help individuals to stand out but this must be complemented with the attitude of the individual – companies look for people who have relevant experience (not necessarily pharma), necessary skills and the right attitude. “

David McKimm says: “You are dealing with highly educated professionals, often doctors (medical and academic), chemists, or some other derivation from the science world. “

“Having an MBA should give you the tools to understand the problems, issues and the complexity of the environment that the business operates within. With your MBA you should also be better placed to effectively design, communicate and deliver the right solutions for the business. “

Pablo Kommisar says an MBA is perhaps not a must have, but still extremely useful. “The more prepared you are, the better. The pharma industry is awfully complex, very dynamic and faces ever-increasing challenges; we need exceptional skills to deal with exceptional challenges. “

Julien de Salaberry says: “An MBA is not a must-have in the pharma industry. That said, a lot of senior managers and executives in the industry do have MBAs along with doctorates or other medical qualifications. From a senior management hiring perspective, it is generally expected that candidates will have a postgraduate qualification such as an MBA. “

Graham Clarke concludes: “The industry is getting tougher and more competitive and wants the best. Having an MBA helps to demonstrate that you have that edge. “

For a lot of recruiters, including Jim Golby, human resources manager at Merck Serono in the UK, the answer is yes: “An MBA can be a really valuable experience for some people. To prove the point, Merck Serono actually runs its own global MBA, in conjunction with Ashridge Management College.

“This is an enriching experience for people who are already with Merck Serono and will help enhance their performance and widen their overall business perspective. It also helps prepare some managers, who are already in relatively senior positions, for potential future opportunities which may arise. “

Do they offer career progression?

Jim Golby says: “They definitely do provide extra business understanding and awareness however clearly individuals who are selected for the Merck MBA do not get guaranteed career progression but they have been singled out as colleagues with future potential talent for the organisation. Nevertheless, they still have to be successful in their current roles before that next step can be considered. “|

Do they create broader managers? Jim Golby thinks it depends on the school: “If it is a top business school and/or specifically orientated to the organisation – as in the case of the Merck Serono MBA – then it should enhance their core understanding of management and business skills in general. “

The type of tailored course that Merck Serono offers may be a pointer to the future. In the US, Rutgers Business School, in the heart of the bio-pharma corridor in New Jersey has a partnership with Bristol-Myers Squibb, Eisai, Johnson & Johnson, Merck, Novartis, Roche and Schering-Plough, to offer an MBA in pharmaceutical management, launched in 2008. In India, the rapid growth and relative recession-proofing of the pharma industry has become more attractive for professionals.

To cater to this demand, over eighty educational institutes are now offering an MBA in pharma. covering a huge range of pharma specific areas. These include everything from economics to pharmaceutical marketing management, pharma selling and anatomy, physiology and pharmacology, and customer behaviour.

DIFFERENCES BETWEEN EUROPEAN AND US MBAS

Duration: Typically, a European MBA programme is shorter than in the US. In general MBA courses in Europe run for a year. American schools in general would have more star professors than their European counterparts. However, the experts may devote only limited time to teaching or may not teach at the MBA programmes at all.

Outlook: European schools have a significantly higher percentage of non-national students and faculty members than their American counterparts. However, internationalisation does not translate directly into number of foreign students or faculty. Alliances and exchanges, for instance, contribute to an overall international culture. European schools do focus on cross-border features such as international exchange programmes.

Student body: European students are generally older with work experience. The schools offer a greater diversity and originality of teaching and learning methods, and are taught at specialist institutes rather than being part of large universities.

Scale: In general, schools in the US are larger, with an average intake of full-time MBA students of 287, compared with 124 in Europe. European schools tend to have smaller facilities, faculty and endowments, mainly because of lower corporate acceptance (donating funds, hiring and promoting).

And what do our MBA graduates think?:

David McKimm of Johnson & Johnson believes the differences are overstated: “In my opinion, there is no difference. I have met good and not-so-good MBAs from both sides of the pond, ” he says.

“However the average age of those attending in the US is lower and therefore the time spent in industry before undertaking an MBA may be less. “

Julien de Salaberry agrees about the age difference: “European MBAs are generally shorter and less US-centric. European MBA students tend to be more mature and experienced, with many more years of work experience prior to their MBA than students from a US school. “

John Hosken is chief writer at Clear And Lucid, a specialist research and writing consultancy, focused on personal development, marketing and technology topics. Email: jhosken@hotmail.com