I regularly meet with veterans or young people in government asking if they should do an MBA. For true outsiders to tech and business, I often advise them to do it, especially if that MBA brings them to the Bay Area.
This is pretty controversial advice in Silicon Valley and many tell me they only ever hear the opposite. So I’m posting my standard advice on business school, (despite the eye rolls that will definitely ensue).
It’s really easy to dunk on MBAs in Silicon Valley—and most of the dunks are deserved. They’re the antithesis of engineering culture. They confuse management with leadership. Often they’re nothing more than over-confident McKinsey consultants who know very little about building, and they don’t learn much about building in business school.
But look around at every major venture capital firm in Silicon Valley and you will find many Stanford MBAs, some of them leading great firms. Many don’t mention it publicly, because the meme is just how useless it is. But it’s telling that these smart people didn’t drop out of the program in month three. They used the program to advance their careers.
I’ve backed several successful startups founded out of Stanford Business School. DoorDash is probably the best example of a tech company started by an MBA who used his time in the program wisely. The argument against MBAs is that these companies could have been founded without the program, which is clearly true. But I still think outsiders benefit from the 20-month program for some non-obvious reasons —not just credential or network.
I started an MBA ten years ago which took me to the Bay Area. I didn’t really enjoy the program. I didn’t like the culture of business school and the “soft skills” courses were ridiculous. But I learned a lot about how the elite business world operates in a way I never would have understood as a former journalist with no connections in tech or business. If you’re someone like I was— a “non traditional”, a veteran or some other form of obvious outsider— there are a few good reasons to get an MBA.*
1.Understanding elite management culture is the key to understanding the world: I often advise veterans to think of their years in business school as language immersion. You’re going into a new culture. They have different clothing, hobbies, customs and experiences. Many of these students already know each other from undergrad or prep school. They have deep ties to the business or finance world and know the nuances of how it operates. You know none of this and they know you are different. So study them. Learn their language *without* adopting it. Study their incentives, the status hierarchy and what drives them. They are what the broader world thinks “smart” is. And everyone from a middling public company to a nation state derives their management practices and status markers from this culture. Learn the markers of this culture and it will help you better understand the world.
2.Gain confidence quickly: outsiders always assume that insiders are smarter and more strategic than they really are. When I arrived at business school, I was certain that my peers knew secrets I didn’t or that they had uncommon strengths or abilities that dwarfed mine. I left knowing that wasn’t true. Veterans in particular need this confidence as they often are too deferential to rank and bureaucracy. Business school allows outsiders to build the confidence of insiders very quickly and learn what is real and what is fake.
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@piersmorgan@carolecadwalla There is some dispute as to whether Orwell actually did shoot an elephant, or whether, in Shooting An Elephant, it's just a metaphor for British Imperialism. However, the good thing about this strange argument is it did lead me to this, which made me laugh out loud.