What's the ROI for an MBA? (Higher Education).

A recent study at the Stanford Graduate School of Business questions the value of an MBA and has raised debate and the ire of faculty on business school campuses throughout the United States.

The findings of professor Jeffrey Pfeffer and Ph.D. candidate Christina Fong challenge the

traditional notion that the financial and time investment required of a Master of Business Administration degree is recovered through a resulting increase in starting salary upon graduation. After combing through 40 years' worth of data, they found no conclusive evidence that an MBA pays off.

Furthermore, an internal report drafted earlier this year by the Association to Advance Collegiate Schools of Business (the body which accredits business schools) criticized programs for being behind the curve on critical instruction such as information technology and overly concerned with magazine rankings. And recruiters are finding that an MBA alone is no longer opening the doors it once did and that real-world experience is becoming more important.

Utah Business explored the MBA programs of four Utah institutions to see what the prevailing feelings of faculty are here in the Beehive State. Though each program offers its own particular strengths and focus, all of the administrators interviewed still believe in the value of an MBA-- particularly in its ability to provide a broadened perspective -- and all discussed this value in terms other than salary.

University of Utah

Since the release of the Pfeffer/Fong study, a lot of people have asked Jack Brittain his opinion on an MBA's worth. "I think the value is the same it's always been," says the dean of the U. of U.'s David Eccles School of Business. "(An MBA) gets people in the game, playing at the highest level."

Brittain thinks that the study focused too much on income attainment and not enough on what else the advanced business degree has to offer. "It doesn't guarantee the highest salary, but it does offer an interesting career. The MBA is a breadth degree. It's always been about perspective and broad exposure to a variety of topics." So while the program at the U. does offer courses in up-and-coming fields such as Internet marketing, it also exposes students to a core curriculum of traditional areas such as finance, accounting and statistics.

In addition to a traditional two-year MBA program, the U. offers a Professional MBA that focuses on the needs of students who have experience in the workforce and, in many cases, are still working. "Because they are full-time professionals, their learning opportunities and needs are different," says Brittain. Unlike traditional students, these professionals can apply what they learn at night to the job the next day, and then bring the experience back to the next class to share with fellow students. In this way, the students themselves are just as vital to the learning experience as the faculty.

Brittain cites the faculty at the U. as one of the strengths of the MBA program. "Our faculty are out there doing stuff that matters, working on where things are going," he says. Reflecting that progressive attitude, the Lassonde New Venture Development Center at the U. recently opened to assist the cause of finding ways to commercialize technology -- an area of special interest in the Rocky Mountain region.

Westminster College

"I think the value of an MBA has a lot to do with how it's contextualized with an individual's experience," says Cid Seidelman, dean of the Gore School of Business. The student mix at Westminster contributes to this attitude, for while a traditional MBA is offered (in two-year and accelerated one-year forms), Seidelman estimates that about 80 percent of the students at Westminster attend part-time, and most also work full-time in the business world. "I would call our program a Professional Master's program," he says. In particular, the Professional MBA track targets working pros with two or more years of experience, while the Executive MBA focuses on those with an average of 13 years out in the field.

Whereas many schools offer core courses and then electives that allow for concentration and a targeted degree, Westminster recently unbundled its curriculum so that the basic MBA is a general degree. After that, students can specialize by taking any number of certification classes, if they wish. For example, one such certificate emphasizes Technology commercialization. An MBA in Technology Management is also available as an area of focus.

Seidelman feels their faculty attracts prospective students as well, in particular because faculty members combine academic credentials with practical experience. "We have a philosophy that all theory is mostly biased, (and yet) a lot of professional programs aren't using Ph.D. (qualified faculty). So we've combined a doctorally qualified faculty with an appreciation for both theory and practical dimensions."

Brigham Young University

"(An MBA) teaches you to keep learning," says Ned Hill, dean of the Marriott School of Business. "It forces you to overcome blind spots, to consider all topics." BYU business students take a common core their first year of study, and then go into more depth the second year. "But not too much depth," says Hill. "We require our students to spread out."

Getting an MBA is also an opportunity to rub shoulders with a lot of talented people. Hill believes the networking capital that a good MBA program provides is one of the most important aspects of the education, and characterizes BYU as a gathering place for bright students and excellent faculty. Though the student body is predominantly of the LDS faith, Hill says many non-LDS students apply to the business school due to its reputation.

Hill attributes much of his school's success to the fact that they have remained very traditional in focus: finance and accounting are particular strengths. "Our Master's of Accounting is number three in the nation," says Hill.

The placement office is one of the best in the nation. Usually in the top 10, it placed first in 2001 in percentage of MBA students placed in positions upon graduation. Hill says BYU's strategy for forming partnerships with companies, such as Ford, Dow, Honeywell, Wells Fargo and others, helps students find employment.

University of Phoenix

The University of Phoenix is a non-traditional school. "Our student body is a little different, probably closer to an Executive MBA (focus)," says Darns Howe, director of the Utah campus. "The average age is 36." Unlike other schools, students (and faculty) must be employed, and because 70 percent are reimbursed for tuition in some way by their employer, there is no placement office. "Employers need to see value (in their investment)," and most students wish to obtain skills to assist their current position or to seek a promotion.

Still, Howe says the MBA program touches upon traditional values. "Students develop the skill to be able to communicate effectively with all functional aspects of an organization. They can make a better bottom-line contribution to (their employer)."

The University of Phoenix is trendy, in that it constantly tweaks its MBA programs to meet the needs of students. A few years ago, there was a focus on areas such as global management and eBusiness; today Howe sees a return to a basic MBA that emphasizes accounting, statistics and marketing. And similar to Westminster, the University of Phoenix allows students to choose other areas of emphasis through certification.

The MBA is one of The University of Phoenix's fastest-growing programs in Utah, with more than 400 students currently enrolled. Students have the option of taking courses in the FlexNet format, which is a hybrid of on-campus and online coursework, and can save hundreds on textbooks by downloading e-text course materials.

RELATED ARTICLE: Learn abroad while living in the U.S.

Thomas Guthrie of Salt Lake City wanted to focus his MBA studies on strategic planning, but he also wanted an international education. Rather than leave the country, he instead chose to attend Heriot-Watt University out of Edinburgh, Scotland (www.hw.ac.uk) via their online learning program.

His Scottish heritage played only a small part in his choice. "I like the European MBA because all the courses there have an international element (built in)," he says, "and Heriot-Watt was one of the first universities to embrace online learning."

On-campus students earn their MBA in one intense year of study, but online learners can extend that to two or three years. However, Guthrie says, there is no other distinction between the two. "It is the exact same program - classes, coursework and books are all the same.

Other programs Guthrie considered were the University of Warwick (www.warwick.ac.uk) in England and Southern Cross University (www.scu.edu.au) in Australia.

John Blodgett is a Salt Lake City-based freelance writer and photographer