Tag Archives: INSEAD

The MBA, the chief executive, and the long-term value

There’s a heartwarming story for MBAs and MBAs-to-be in yesterday’s Financial Times by Herminia Ibarra, Urs Peyer and Morten T. Hansen, professors at INSEAD. (I must say, surely only among academics does it take three (3) people to write one short Op-Ed piece in the FT, but I digress.)

They say: “The global recession may be almost over but the debate rumbles on. How much were MBA-trained executives really to blame? As MBA professors, we heard arguments that we had been teaching the wrong models, neglecting ethics, forgetting common sense, sitting in ivory towers made of spreadsheets and generally nurturing greed. We listened to the charge that business schools were guilty of short-term thinking, especially when evaluating leadership. MBA graduates, so the argument went, were looking for quick riches.

“So, when we came up with the idea of a ranking of chief executives based on performance over an entire career, we also decided to check the myth of the value -destroying MBA against a large and meticulously compiled data set.

“When you rank the top chief executives in the world, based on return on shareholder investment and change in market capitalisation over their entire time in the job… four of our top 10 have the letters M, B and A after their names. Could it be possible that this much-criticised degree helps a business leader to add long-term value after all?

“Our analysis of 1,109 chief executives from 1995 to 2009 found that those with MBAs performed, on average, better than those without. The difference was not large but it was statistically significant. When we drilled down one more level, we discovered that those who had reached the position of chief executive before the age of 50 benefited particularly from a business school education. In fact, on average, having an MBA sends such individuals a full 100 places higher on our list.

“Of course, the term average is important. There are many high-performing chief executives without an MBA. But the overall tendency among the business leaders we analysed is for an MBA to correlate with a higher position in the ranking, especially for those who get the top job at a comparatively young age.

“Our data set does not explain why this should be the case but there are some obvious benefits to going to business school: an MBA gives you better all-round skills; it buys you credibility and it allows you to build a personal power alumni network.”

Full text here.

An MBA application journey, from GMAT prep to acceptance

Today I thought I’d share the extended journey of an MBA Studio client, as reported here and here. Not only is it a worthy and heartwarming success story in which I’m most gratified to have been able to play a part — helping this applicant with a 640 GMAT get into a top European school — but it is also instructive as to the ups and downs of elite MBA applications…

“Hard work certainly goes a long way. These days a lot of people work hard, so you have to make sure you work even harder and really dedicate yourself to what you are doing and setting out to achieve.” — Lakshmi Mittal

“The above quote by the great Mittal is really my matra and this is what i believed in when i started on this journey. There were a great deal of challenges and difficulties that i faced but what kept me going was the ultimate goal! MBA is what i wanted to do, this would take me to my destination and i wanted to give in my 100 percent to get there!

“I started this blog back in February, 2009 and at that time I had no idea what was ahead of me. I still remember my first post on 9th February 2009. That was the day when I first laid my hands on the “Official Guide for GMAT Review”. That was the day I promised myself that I’ll put in my sole(sic) into the GMAT preparation and give-in my best shot towards my business school application.

“So without further ado here is a timeline representation of some of the important events that followed that day:

Feb 9, 2009 – I prepared a GMAT gameplan – a time table of how I’ll be taking on the GMAT. Ordered 5 books and dowloaded the beatthegmat flashcards by Eric. More Info
Feb 18, 2009 – Took my first Diagnostic test from the official guide. Did pretty well!
Mar 2, 2009 – Took my first GMAT CAT (GMATPrep 1 downloaded from mba.com) – didn’t go well.
Mar 16, 2009 – Took my first Manhattan GMAT CAT
Apr 1, 2009 – Found out about GMAT Focus – that was a true gem!
Apr 20, 2009 – My first 700 score in a practice test!
Apr 22, 2009 – Influenced by all the GMAT gurus in the Beatthegmat community, I started an Error Log to record all my errors and started going throu’ them once every 2 days along with the flash cards.
May 1, 2009 – A very anxious day indeed with GMAT in 24hrs!
May 2, 2009 – GMAT Day (Attempt 1) – scored a 640 (Q44 V34). Was disappointed with the score and decided to re-take.
May 4, 2009 – Back on with preparation! Analyzed what went wrong and tried to come up with solutions. (You can read about it here)
May 7, 2009 – Scheduled my GMAT (attempt 2) for 19th June.
June 1 to June 8, 2009 – Took 4 practice CATs and averaged around 720! It was a real moral boost.
June 19, 2009 – One of the worst days of my journey – GMAT attempt 2 – 620!! Herez some realization.
June 24, 2009 – Back in the game for another attempt. This was the first time i met Charles – the best tutor in NYC.
July, 2009 – Rigorous practice. And this time with tougher materials such as LSAT critical reasoning book, GMAT Focus, and others. (More info)
August 8, 2009 – Realized something – I’m a horrible standardized test taker. GMAT (Attempt 3) – 640, Again! (More Info) I decided to stop wasting any more time on GMAT started the b-school hunt with my 640!
August 9 to 11, 2009 – Prepared a list of parameters that would help me select 6-7 b-schools that i’ll apply to. Shortlisted a few schools in Asia and Europe. (More Info)
August 15, 2009 – Prepared an outline for essays. First stop – INSEAD! Quite a bold move eh! :)
August 24, 2009 – INSEAD essays first draft – ready!
Sep 1 to 24, 2009 – went over 4 more drafts of INSEAD essays.
Sep 28, 2009 – After 6 drafts of essays, finally submitted my INSEAD application.
Sep 29, 2009 – Submitted my application to University of Hong Kong (I still haven’t heard back from them :) )
Oct 4, 2009 – ESADE Application submitted – after 3 drafts of essays!
Oct 6 to12, 2009 – IESE essays – done with my 3rd draft of essays.
Oct 15, 2009 – ESADE invited me to interview – this was one of my happiest moments since it was my first interview invite!!
Oct 23, 2009 – IESE Application submitted.
Oct 26, 2009 – IESE Invites me to interview within 3 days – That was the fastest response i’ve got.
Nov 1 to 20, 2009Interview preparation along with NUS Business school application essays.
Nov 5, 2009 – INSEAD dings! I kinda expected that.
Nov 13, 2009 – NUS Application submitted.
Nov 22, 2009 – ESADE Admissions interview (face to face with adcom). I still remember that day. It went amazingly well and I was quite confident on making it.
Nov 23, 2009 – IESE Interview – My longest interview but was a fantastic experience with a super friendly adcom!
Nov 25, 2009 – IESE Waitlists me and invited me to an Assessment Day on Jan 31st! It was a 2 months wait!
Nov 27, 2009 – ESADE dings me! I was totally shattered. I still have no idea why but now i understand that there is someone up there who controls your reins. Everything happens for the best!!
Dec 4 to 10, 2009 – HKUST application essays – draft 1,2 and 3.
Dec 12, 2009 – HKUST Application submitted.
Dec 15 to 31, 2009 – The dreadful WAIT!
Jan 1 to 15, 2010 – Applied to Tsinghua University in China, Interviewed and Waitlisted :(
Jan 29, 2010 – Two days before the big event – IESE Assessment day, I get dinged by HKUST!
Jan 30, 2010 – IESE Case presentation – Sample class by Prof. Mike Rosenberg from IESE B-school.
Jan 31, 2010 – IESE Assessment day – A fantastic experience interacting with 30 brilliant applicants from over 15 countries. A whole day of team activities.
Feb 1 to 10, 2010 – Waited impatiently for the IESE results!
Feb 11, 2010 – The day my dream came true – Got accepted to IESE Business school!

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“Like World cup is to soccer, Wimbledon is to Tennis, an acceptance is to an applicant blog. I waited 12 months for such a post and I can’t be happier. I couldn’t have done any of this without the love, support, and encouragement of my parents and my girl friend. I would like to dedicate this admission to them. Amma, Appa and Vrush – this one is for you!

“I also want to thank many people who have played an important part in my journey:

Eric Bahn for Beatthegmat
Charles Bibilos – my tutor
Rocky for all the support
Avi Gordon – MBA Studio and his wonderful book.
Richard Montauk, for his book
ClearAdmit and Accepted for their amazing resources
The entire MBA blogging community
All my readers for their constant support and encouragement.
Alumni and Students of IESE
Nick Vujicic for inspiring me when i was low. (Check this out)
Guy Kawasaki for sharing his knowledge and teaching me a lot.

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“My apologies for making this post so long. If there is one take-away from my MBA application journey (apart from persistence) that I’d cherish life long is this acquired addiction of Blogging. So I’ll be back here soon with another post. Till then, hang in there and have fun! Muchas Gracias!”
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Take a tip from George Soros in Managing the B-School Failure Essay

The setback-failure-weakness essay is commonly asked for in MBA Admissions because it is a test of an applicant’s maturity, self-knowledge, honesty, and ability to learn from mistakes. It is, in other words, the biggest indicator of real leadership ability and potential.

Sample questions that approach this topic are:

Tuck-Dartmouth (Essay 3): Describe a circumstance in your life in which you faced adversity, failure, or setback. What actions did you take as a result and what did you learn from this experience?
Harvard Business School (Essay 2) Tell us three setbacks you have faced?
INSEAD (Essay 3) Describe a situation taken from your personal or professional life where you failed. Discuss what you learned.
Judge-Cambridge (essay 2) What did you learn from your most spectacular failure?

MBA applicants often struggle with these essays because they feel that admitting a weaknesses or sharing a time when they failed erodes their candidacy. In fact, it does just the opposite. Leaders know their weaknesses, and can admit them to themselves and others — in order to work on them, or work around them. It shows self-insight and points to seniority. No one is comfortable talking about their weak spots and failure. But nobody is perfect or has not failed. Not Bill Gates, not Richard Branson, not me, nor you, nor the admissions officer.

So it is not admitting a weakness is what will get you dinged, because it’s like waving red beacon that betrays inexperience and a junior mindset. If you “have no weaknesses” that just tells Adcom that you don’t know what they are yet or that you’re too immature to face them. It says you don’t know yourself, therefore you don’t yet know where you will mess up. You are a liability to yourself and your company.

Take a tip from George Soros, self-made billionaire, philosopher, philanthropist, social reformer, and fund manager extraordinaire – famous for “breaking the Bank (of England)” by shorting the pound sterling in 1992 – who shares this candid account of his weaknesses:

“I’m a very bad judge of character. I’m a good judge of stocks, and I have a reasonably good perspective on history. But I am, really, quite awful in judging character, and so I’ve made many mistakes. It took me five years and a lot of painful experiences to find the right management team. I am please that finally I found it, but I cannot claim to be as successful in picking a team as I have been in actually managing money. I think that I’m very good as a senior partner, or boss, because I have a lot of sympathy for the difficulties that fund managers face. When they are in trouble I can give them a lot of support, and that, I think, has contributed toward creating a good atmosphere in the firm. But I’m not so good at choosing them.” – ‘Soros on Soros: Staying Ahead of the Curve,’ Wiley & Sons, NY, 1995, p.18

See, the greatest business leaders all have weaknesses and all have made significant mistakes in their careers and their lives. The point is not to prove that you don’t fail, or won’t fail. It is to prove that you have the insight into yourself to be able to recognize and compensate for your weaknesses.

What Adcom wants to know is not how you avoided failure, but how you managed it, what you learned, what insights into yourself you gained, and how you grew from there. They want to see that you have the will and the insight to locate and understand the source of your mess up – the underlying weaknesses that caused it – and that you have the maturity to face and work on the issue.

To summarize: the setback essay is not testing to see if you have weaknesses. We all do. It is a test of your self-knowledge and maturity. The committee wants to see if you can candidly face, discuss, and work on your flaws, or if you will you try to hide them or blame circumstances or other people. This is a significant test of your readiness for senior leadership.

A note on tone
Soros is candid, straightforward, and objective in his self-analysis. He shares measured self-insight with the reader. He doesn’t try to slip in softening or deflecting phrases, or hide behind humor; nor is he self-excusing or whining and looking to blame others – the hallmarks of a too-junior applicant.

[Updated 9/2011]