Return to Virginia Business - January 2002

by Lois Carter Fay

Feeling whipsawed by financial markets? Don't know whether to go with stocks or bonds or money markets? Can't decide when the recovery will come and whether it will be quick and strong or slow and lazy? Maybe it's the best time to start investing in something else: namely yourself. Why not go back to school and hone your business skills?

After all, you're not missing much in these recessionary days. Pay raises are meager and employers aren't handing out bonuses and stock options like they used to. Companies are cutting back, not expanding, so there's not much chance of winning a promotion any time soon.

What to do back in school? Bone up on accounting or financial analysis. Sharpen your ability to understand markets. Maybe even pick up a foreign language. "Utilize the slowdown to improve your basic literacy skills," recommends William M. Rodgers III, associate professor of economics at the College of William and Mary in Williamsburg. "Globalization (of the economy) will continue to grow over the next 30 to 40 years," says the former chief economist for the U.S. Department of Labor. "Successful entrepreneurs will be those who understand the growing diversity. Managers must be able to bring people with all types of backgrounds together successfully."

Indeed, lifelong learning, development of flexible problem-solving skills, interpersonal skills and technology readiness will only gain in importance, he says. Getting an advanced degree, particularly a Masters in Business Administration (MBA), can yield significant financial rewards maybe not tomorrow but in a year or two. "It's a very good time to get an MBA," says Robert S. Harris, dean of the Darden School at the University of Virginia in Charlottesville. "There's an increased uncertainty in the economy. People in some cases are less sure of being able to keep their job. An MBA is a good investment. Five years out, compensation (for Darden graduates) is $135,000."

Not bad, considering that the typical Darden student earned about $40,000 before entering school. It represents a pretty good return on investment - with a lot less risk than plowing your money into tech stocks. The difference in earning capacity more than makes up for the hefty tuition - between $50,000 and $60,000 - and two years of lost income. If you play your cards right, you can reduce the expense of attending school through a combination of financial aid from the university and a signing bonus with your new employer.

Take, for instance, Dean Fanikos, a second year student at Darden who is financing his schooling with loans, savings and scholarships. He graduated from Harvard in 1996 and spent four years in Boston managing a temporary services agency there. "I was a government major at Harvard. That gives you a great core education, but I found I was lacking business skills," he says. He decided to enter an MBA program full time in part because he felt he could use a change. "I wanted to tap into a good network once I finished, and I had a brother who came to Darden and graduated in 2000. I had the opportunity to see his transformation of life experience." With a GMAT score of 730 and an Ivy League undergraduate degree, Fanikos was a prime candidate for Darden.

When he visited, he was impressed - and not just by the beautiful campus. Darden uses the case method in its classes. "Sixty students from various backgrounds talking about the way to proceed really appealed to me. You're really learning from your peers. It was a strong fit for me," he says. "I've met people from every corner of the globe. That interaction will make me a better general manager."

Of course, not everyone can get into the Darden School, ranked ninth in the nation in 2000 by BusinessWeek, where less than 10 percent of the 3,000 applicants each year are admitted. And many people cannot afford to take two or more years off from work to go to school full time.

For easier business school options consider The Central Michigan University College of Extended Learning, with locations in Falls Church and Richmond as well as three other locations in Virginia. Although students must have an accredited BA degree with a 2.5 grade point average, the college does not require them to take the GMAT or GRE, says Darrell Burrell, associate regional marketing director. CMU offers a Masters in Science in administration, with various concentrations, in an accelerated format. "Most of our classes are completed in three alternate weekends," he says, meaning that for each class the student goes to school on Friday night for four hours and all day Saturday every other weekend for six weeks. It takes a student about two years to complete the program. For those who have not achieved a bachelor's degree, CMU offers an online undergraduate degree.

Even high school graduates who obtain an associate's degree can expect to earn significantly more as a result of education. According to Linda Rice, dean of work force development at Tidewater Community College (TCC) in Hampton Roads, someone who earns this two-year degree can expect to earn approximately $250,000 more than a high school graduate over the course of a lifetime. TCC offers degree courses not only in the daytime, but also evenings, weekends and online. Non-degree courses are also becoming increasingly important for advancement in the business world. "We are seeing an increase in requests by businesses for customized training, particularly leadership and supervisory skills and to improve their writing skills," she says.

When considering a business program, don't limit your search to traditional business schools. Liberal arts institutions often offer business and management programs, too. For instance, Roanoke College, a small, private liberal arts college, has developed the Management Institute as a continuing education program for middle and upper management in the Greater Roanoke Valley. The 10-week program, held once a week in the evening for three hours, is not a degree program but executives do receive continuing education credit for it, says Larry Lynch, chairman for business administration and economics. "We present sessions on issues that affect businesses at the time the sessions are being offered. The institute is always state-of-the-art."

There are many choices. How do you decide what's right for you? Program offerings vary widely by region of the state, so you can narrow the alternatives quickly by identifying programs available in your region. Check the colleges, community colleges and career schools within commuting distance. And don't forget to consider less visible institutions that deliver classes through distance learning or satellite facilities. Also, for programs that pack in intensive study over an entire weekend, you might consider a longer drive.

Many other factors go into making the right education choice, says Tidewater Community College's Linda Rice. Does the program offer the particular kind of skills you want to master? Do you need a degree program, or can you settle for a certificate? How convenient are the classes and how long will it take to complete the program? Do the schools offer job placement assistance and internship possibilities? Finally, will you be comfortable with your surroundings and fellow students?

"Our average student age is 29, but our students cover the full spectrum. They can be in their 20s to retirement," says Rice. Many students are returning to school to upgrade their skills while still in the work force; others are recent high school graduates. "Anybody comes to a community college - the old, the young, the ones who want to improve for their own benefit, and those who want to improve job prospects," she says. "Someone just out of high school may be sitting in the classroom next to someone who is 55 and wants to change careers." The benefit of a classroom situation like this is that a lot of learning occurs across the generations, she says.

Of course, fertilization of ideas across age groups and backgrounds is not restricted to the community college setting. It's also a major part of the team approach to learning that occurs in many MBA programs, including the College of William and Mary's Executive MBA program, and it's the element that attracted Denise Lombardi. "It's a class of 35 and we take all our courses together," says Lombardi. Employed in associate communications by Capital One in Richmond, she actually changed companies before entering the EMBA program because her former employer was not supportive of her choice to return to school. "We establish strong relationships with our classmates. The classroom instruction is excellent, but the interactions with the other students are very valuable. I get a lot out of the backgrounds of the people in the class."

One of the key factors in Lombardi's decision to enter the W&M program was the length of time for the program. "Many part-time programs can stretch out over four or five years. The benefit of the EMBA is that it's packed into a much shorter time frame." Lombardi and her classmates are just finishing their third of five semesters. The Executive MBA program was designed for the working professional, according to Susan Weyland, assistant director of the program. Students meet once a week, alternating between Fridays and Saturdays. Although it is not an accelerated program, it takes only 20 months to complete. Students take four to six classes per semester, and they go to school year-round. Eighty percent of the students in the EMBA program are fully or partially sponsored by their company. "Even if the company is only partially financially sponsoring them, they are giving them every other Friday off," says Weyland. "The balance is (generally) handled by student loans."

William and Mary also offers a full-time option and a traditional part-time evening program. The full-time program takes two years to complete and the students are typically not working, says Kathy Pattison, director, MBA admissions. The evening student generally attends class two nights a week, completing his MBA in a maximum of four years.

James Madison University in Harrisonburg, on the other hand, does not offer a full-time MBA program, says Kenneth D. Bahn, director, MBA programs and professor of marketing. With U.Va.'s nationally recognized Darden School located nearby, JMU concentrates instead on part-time students in the Shenandoah Valley and, more recently, on an online MBA program focused on drawing from a national and international applicant pool. "Our online MBA is the first and only of its kind in the country," says Bahn. "It is an MBA with a concentration in information security. The type of person we hope to produce becomes a liaison between the technical folks and senior management. We've been told that people will start anywhere between $90,000 and $100,000." At a cost of just under $20,000 and a time-to-complete the program of 25 to 26 months, this offers a significant return on investment.

A pilot class of 11 students began in August 2000. This is an accelerated program, giving the students approximately six graduate courses every semester, which they take one course at a time. The class is scheduled to complete the program in October 2002. At the beginning of each course, students meet at a location near Dulles International Airport for eight hours of face-to-face time with the new instructor. JMU chose this location because many of the students fly in from around the country to participate. "The furthest one comes from Tampa Bay, Fla., and we have two from New York, two from New Jersey and one from Wisconsin. The rest are in-state," says Bahn. "Ever since the 9/11 terrorist attacks, I'm getting three to five requests about this program each week." The program is already filled for the spring, he says, with 30 people accepted and a short waiting list. JMU will begin one online MBA class each year.

Sven Brill, a German, graduated from JMU with a degree in computer science in May 2000. "I chose this program because it combines the MBA with information security, and companies need that. I'm going to be a 'suit that speaks geek' or a 'geek that wears a suit,' whichever way you want to look at it." Brill enjoys the program, which allows him to move at his own pace. "You don't have to set time aside in advance for classes. You have to plan your time, but it's easier than going to regular classes."

Brill has done some preliminary interviewing and says, "I have a couple of offers and I'm probably going to go into information risk management or information security consulting." He's not sure where he will settle. "When potential employers ask where I want to go, I usually say, 'Earth.'" Two things are clear: He is certain to get a job, and his starting salary is sure to be higher than $40,000. In a down economy, that's some of the best job security you can get.

Return to Virginia Business - January 2002