The MBA Exchange

Well...I know I'm gonna hear back a lot on this one...But it's something I'm really looking forward to write...Even if it means to offend some of my friends :P

Simple question - What is an MBA needed for? More specifically, why is everyone running after an MBA degree?

You'd say the obvious answer is money, what's there to write a blog about? Well, yes, but why would businesses pay so well to an MBA?

Any MBA? No. I'm talking about MBAs who are in highest demand. People who're at the top of the organizations. People who 'seemingly lead' the businesses. Real Masters of Business Administration.

So what's needed to be a Business Administrator? An MBA degree. I disagree. Yup, you can say who am I to say that, but I have a logical reasoning here. To administer a business, you need just one thing - Do not ever get too 'close' to your business. Do not let your emotions control your business sense. Because when that happens, your visibility of 'Business' tends to diminish. You get drifted away from what's most correct thing to do, and rather do what you think is the most correct thing to do.

Confusing? Well, I'm specifically talking about what's known as 'Strategic Inflection Points'. You'd better read about them on Internet or in the excellent book by Andrew Grove, the Intel Chief. When a strategic inflection point comes, one of the most important things that's done is to replace the CEO. Not because he's done badly or he's not capable, but because a new CEO is 'emotionally' in the best situation to deal with the situation at hand. And mind you, the situation is really a very complex one, which doesn't leave room for emotions...

Ok, so I'm done with the background. Coming back to my question. Considering above, the CEO and senior leadership, which are almost always 'the MBAs', will move to a new company in the event of a 'Strategic Inflection Point'. Did I say this above? Actually yes. Suppose company A has to replace it's CEO. Then the new CEO has to come from some other company. Well, in that case, it's very likely that the incoming CEO is coming from another company also going through a strategic inflection point. Overall, there'll be CEO exchange, and so would happen to other senior leadership teams.

Do you see the win win situation for 'the MBAs'. No matter what happens to the business, whether the new CEO can steer it through it or the organization damages under his leadership, there'll always be demand for 'new CEOs' as long as there're Strategic Inflection Points. And there'll be Strategic Inflection Points as long as there's innovation. And there'll be innovation as long as there's a desire to earn money. New businesses will emerge, they'll bring new technology, and pose danger to the existing businesses, causing Strategic Inflection Points. And this will eventually lead to 'CEO', or let me now say, 'the MBA exchange' :)

So, to me, that's the underlying reason for the mad rush towards being an MBA. No matter what good or bad you do as a senior leader, no matter how good an 'MBA' you're, no matter if you're a master or not, common business sense says - Exchange MBAs when the business is hit by a storm...and the life goes on :)