Tuesday, August 18, 2009

MBA: The Modern Finishing School

What is a Masters of Business Administration all about? In a nutshell, the MBA is a finishing school.

Finishing for what you ask?

"Work is of two kinds: first, altering the position of matter at or near the earth's surface relative to other such matter; second, telling other people to do so. The first kind is unpleasant and ill paid; the second is pleasant and highly paid." -- Bertrand Russell

To "lead"; to tell others what to do. Why? As Mr. Russell points out - this is pleasant and highly paid, and the other option (to "follow") is unpleasant and lowly paid. This is not fully true of course - this is only true in command-and-control economies, e.g. the former Soviet Union or a large company. If you work in a command-and-control structure, you likely want to get your MBA. The MBA itself is essentially "speak and spell", i.e. how to communicate, combined with learning some knowledge of the levers of power within a standard command/control infrastructure. The degree itself appears fairly simple, fun, and gets you networked up and ready to rake in the big bucks.

However, for your right to boss people around and get compensation packages that are well above what your value is to the corporation (or other infrastructure [0]) you have to give up a few things: self respect, the ability to create, and the ability to speak your mind. Don't get me wrong - you can lose these things on the other end in a command/control situation also - but it seems that the commanders are worse off as they are giving up their character, the one thing we have control of in this short life of ours. Sure, you can have a terrible boss and feel the pressure to give up character as a minion, just to ease life in the moment, but there is still an option of not doing so.

Listen to an MBAer speak - have you ever heard such whitewashed PC drivel in your life? Listen to the MBA elite versus others and you will hear a huge difference - that difference is what we commonly call a "soul". The constraints on the MBA elite is essentially equivalent to the removal of your soul - you represent the corp, and you cannot speak the obvious truth, or, well, say almost anything interesting at all. This is not true of all MBA elites, but look around - it is the rare MBAer who speaks truth, or anything remotely approximating truth.

So you can't speak your mind. So what? Well, you are not creating either. That is what humans need to do to feel and enjoy life. Either this statement resonates with you, or not. If not, you might not yet be human [1]. Sure, some MBAers might actually lead and actively engage in creative efforts. Again, this appears a rarity.

Now for self respect - you can't create, you cannot speak. You are a slave, who voluntarily gives up your character in exchange for money. The respect for your degree depends on people not realizing that it is a glorified finishing school [2], and this respect is eroding in the current economic climate where people are outright angry that MBAers as a class appear to have looted money in a parasitic manner without providing value and good decisions in exchange for it.

For a long time it seemed that getting an MBA has a good deal, but could that be shifting now? If a society follows command-and-control for means of production, organization, and governing, then yes it does (at least financially). Aristocrats are needed in such a world. But in a society where creative work, craftsmanship, small companies, flattened hierarchies - "Whole New Mind" stuff - and other productive work can be done without inefficient and highly segmented and hierarchical structures characteristic of classic command-and-control.... well, what role does a MBA play there? There, in a creative world populated by makers respect and the few leading roles will go to those who have proven themselves were it counts - in creating and communication.

That world is not here just yet - but it may be poised to come. As computers make the boring paper shuffling "operating system" stuff of corporations more and more automatic we will see first a collapse of middle management [3], which will be accelerated by the need to save money paving the way for going through with this change [4], and then as the buffer layer between producers and commanders is thinned the top level will need to be able to actually display a soul and ability to retain respect and ability to lead. Those with MBAs now, or soon, will be able to reap the command-control gravy train for their careers, but we may be living in the end of the command-control economy.

The Soviet Union collapsed under the weight of the nature of command-and-control, the means of running corporations under this same approach may now be undergoing a similar fate: competition with more free, distributed, and creative entities (USA! USA! US... er, I mean, "the small and nimble business' guided by cheap and ingenious computing") that can now overcome, even surpass, the economy of scale in many situations is fierce. "Restructuring" is naturally occurring, and the current mess we are in may be in part be aggravated by the command-and-control nature still largely held by many large corporations, and in turn the hard times may accelerate and force the evolution [5].

There will always be a role for leaders, for people with charisma, for those with couth. But the MBA may not be the de facto route to this role any longer. The MBA is predicated on command-and-control, if we are lucky the evolution towards small, free, and creative will continue and move more and more out of computer science and arts into other areas [6]. Currently the public has some bad taste in their mouths regarding MBAers - judging the herd is difficult, but here structural changes seem to be ultimately leading to the conclusion that the MBA is irrelevant and a badge of shame and not one of honor that entitles one to (others) riches [7].

Lowdown:
- If you are thinking about getting an MBA think twice: is it actually what an uncritical glance says it is? Will you get what you want from it? The MBA depends on command-and-control working as it has in the past, there is reason to suspect this style of organization is and is going to continue to be shaken up.
- A stoic would say an MBAer is a sell out. Sure, those guys died out about 2000 years ago but they rocked and had some interesting things to say. Consider if an MBA actually gives you freedom, or not.
- We live in interesting times. It would be interesting to see if the death of the MBA as status symbol could be sped up by pointing out the emperor has no clothes: you went to finishing school?

Notes:
[0] The difference between a typical leader of a corporation and a typical politician is one of degree. No pun intended. As in everything, I'm speaking generalities here - there are a handful of politicians who are of high character and intelligence, as there are business leaders, but the question is one of the general class and environmental pressures.
[1] "Let us say I suggest you may be human. Your awareness may be powerful enough to control your instincts." - quote from Dune. The struggle to become free is a difficult one - we are borne among many who are enslaved to their natural animal instincts, and thus most of our social environment consists of non-humans in the Dune sense. In our society it is easy to grow and obtain the view that consumption is sufficient for a good life.
[2] An MBA means you are signaling that you want to "succeed" in the business world and that you pass a minimum threshold of IQ and work ethic and that you have, post MBA, proper manners. i.e. you will take certain actions, you will respond to certain incentives, you will behave in a certain way. You have been properly vetted and neutered.
[3] Middle management is basically the operating system of a company. You handle the basic processes, shuffle paper around, pass stuff up/down, make reports, distill information, etc. etc. etc. i.e. you can/should be replaced by a script.
[4] Traditionally we see this - every recession pushed out bloated middle management. But as the workers can be replaced by internal databases, Google engines, filters, wikis, etc. and other aspects outsourced to Indians with crisp accents, strong work ethic, and smaller paychecks we should see the re-inflating of the middle management become increasingly less. Has the computer - which can take care of so much of the logistics needed to run a company - replaced the middle manager, with only some time needed to finish the process?
[5] Bail out plans may be simply prolonging the agony - if some corps, say GM, were notorious for command-and-control failures sending them money to prop them up will prevent their evolution to the new standard processes required to survive. As a secondary significant forcing will soon be on us - the retirement of the boomers - it might be wise to let evolution happen quickly to better handle the shifts that will be occurring.
[6] Hey, if Apple can outsource the iPod what is to stop a small design shop from doing the same? Consumer hardware is cheap, as is clothing, software, jewelry - the list of places where design and the small can rule is large - the question is if the domain of the small is significantly increasing and what will remain limited to huge budgets.
[7] It will be interesting to see how MBA programs react to changes, if the public will be back on board with the MBA elite symbol soon, and if devolution from command-and-control happens relatively quickly or if the change drags on for decades.