IIM MBA Worth it – After fee raise and introduction of new IIM Campuses most of MBA aspirants discuss this question and want to know the future career prospect and ROI before making a decision to enrol for MBA.
It’s that time of the year when students, having attempted the CAT after months of preparation for the CAT, have to decide on the institute they wish to do their MBA from. It’s important because it’ll be this institute they’ll have to call their alma mater for the rest of their lives.why MBA at IIM
The reasons for pursuing an MBA could be many. Some would want the tag and prestige associated with the institute, for others, it could be a shortcut to climbing the corporate ladder. For a few more it could be to get out of the horrible and uninteresting job they were previously working at.
Hence, this question essentially becomes, is it worth doing an MBA from XYZ college given that I have ABC ambition. Will this college be able to fulfil my expectations or would it be a waste of 12 – 20 lakhs INR of my hard-earned money (not even considering the opportunity cost).
I am an IIM alumnus and I’d like to tell you the reasons I’d chosen to come here despite getting better opportunities in other MBA colleges like NMIMS, XLRI, NITIE and MDI. I’d leave it up to you to decide on what you would finally wish to do. I’d just like to provide you with my rationale for choosing this institute.
IIM MBA worth it or not ; lets focus on some key parameters before making any decision
- Brand IIM: In a country like India with 100’s of MBA colleges and 1000’s of students competing every year to get the job roles and pay-packages that are extremely low in numbers compared to the number of applicants applying for it, how can you differentiate yourself? How do you ensure that the recruiter decides to choose your resume for evaluation when the probability of picking it up is less than 0.01? The IIM tag comes to your rescue here. Thanks to the efforts put by the students and teachers of institutes like IIM A,B,C over the years, IIMs have earned the reputation of churning out polished individuals who can immensely help the organization that they work for. Having the brand name gives you a great boost in your consideration for these positions. That’s one reason I decided to do an MBA from here even though I had calls from other prestigious MBA colleges.
- The growth possibility: Even if you wish to consider your personal growth by being in a particular institute, I’d say that new IIMs provide an immense opportunity there. Being surrounded by smart people who crack the CAT with a percentile over 95 at least, you’d still have the opportunity to be a part of the institute brand building by starting clubs, committees from scratch with the power to modify it and use it to provide opportunities to the students unlike older colleges where there would be fixed norms that are being followed from ages. There would be little innovation opportunity and you’d be just a small cog in the big wheel of time. Think about the personal growth you’d have as a result of being a part of such a culture. In the long run, it’s what you do that matters for far more than where you do it.
- Think Long-term: I want you to think about students from the first few batches of IIM Ahmedabad. Wouldn’t they be in a position similar to yours? They joined the institute at a time MBA wasn’t famous or cool but think about the recognition they enjoy now, as a result of the legacy that the institute has built over the years. Similar is the case with the newer IIMs. Being filled with smart students like yourself, the institute has no way else but to grow and become better in the years to come. In a few more years from now, you’d be a part of the rich legacy and your IIM wouldn’t be new . IIM MBA worth it in a long term for sure.
- Placements: Now, this is a parameter lot of students base their decision on. Let me clear this misconception up for you. In management, there’s a term called lifetime value. It’s the total value a customer generates for the firm over his entire relationship with the company. It’s not calculated just based on the first payment received. This lifetime value is a far more important factor to consider for the success to the firm than the first payment it receives. Now, it’s true that a newer IIMs placement figures are slightly lower than that of its private counterparts but it’s not much in reality. It’s a paltry few lakhs extra package due to the location advantage these institutes have. This starting package is not an indication of your potential to earn. Once you’re in your first job, it’s the work that speaks for itself. If you’re good, you’ll take no time to recover that slightly lower package back. Moreover, considered over a couple of years, you’d have no economic loss coupled with the brand tag of an IIM. So, think about this when making your decision. IIM MBA worth it if you study hard to make yourself into Director’s merit list to get attention from Top recruiters and to grab the high paying job profiles during campus placements.
- Education: I have no doubt in saying that the professors here are excellent. Listen to the class and you’d love every minute you spend in the class interacting with the faculty. I can personally vouch for that fact. And I’m sure there can’t be much of a difference in teaching in the other reputed private colleges as well.
- Dilution: Private institutes have this problem of milking their brand name for easy money by opening multiple campuses with the same brand name and over time, may lead to the brand losing its value and credibility. Since the government of India’s main objective is not profit, we can be reasonably sure that such wouldn’t be the case with IIMs.
There are some challenges as well, yes. There would be infrastructure constraints, you’d have to travel for 30 minutes every day to go to your classes, you’d be slightly disappointed seeing your friends in the other colleges getting higher packages than you in the short-term. But then, it’s a pain you’ll have to take to gain something that you can’t get anywhere else. You’ll be a different person by the time you leave the institute. You’ll change for the better.
In the end, it’s your abilities that matter for far more than where you come from.
As the saying in finance goes, higher risk, higher reward. Valid for every facet of your life. Every.
Hope my analysis helps. Take your time to decide. It’s something that’ll stay with you for the rest of your life. Use these as pointers while deciding on the B-School you wish to join. Feel free to take your own decision.
IIM MBA worth it or not totally depends upon one’s goals and dreams
Written by an IIM Alumni for MBA aspirants