Business Education: How its Going

I was looking through my last several blogs and realized that my tone has been a bit, well… doom and gloom. I wanted to take this opportunity to tell you that it’s actually going really well. Yes I am tired, yes Business School is full throttle and completely overwhelming. Yes it is hard, but it has been really enjoyable too.

I have moments like during my Accounting midterm when I realized that I am now able to read financial statements and know something as a result. I have epiphanies in Economics where I understand concepts that didn’t even occur to me… like when demand decreases the quantity sold goes down and so does the price. This seems counterintuitive, but now I get it.

Overall, the business education that I am receiving has been tremendous and I wouldn’t trade it for anything. In addition to the classroom experience, there are the extracurricular activities like a possible business plan competition in Beijing in the spring, a VC meet and greet next week, and mentorship program. These experiences are only possible at this stage in life by having the “student” pass.

So, am I happy I am here? Yes. Is it worth the GMAT, the application, the essays, the letters of recommendation, etc? Yes.

When I look over the last 5 weeks (it seems so much longer) and think about how much I have learned, I am so excited to see where I will be when the program is complete. It is an amazing thing to be on this path, and it’s great to have you with me.

…the living room is painted. On to the crown molding!

The Second Half of the 400

Last night in class, my Accounting professor shared a philosophy that his high-school track coach had about the 400m dash. It goes something like this, 

"Run the first 200 as fast as you can. When you get to the last 200... run faster."

He said that this mantra is applicable to our Financial Accounting course...

He then went on to explain how what we had done so far (Assets) was really pretty easy. He said that what we were about to get into (liabilities and Owner's Equity) was the hard stuff. We all just stared at him in disbelief.

...rewind to justt 1 hour before this proclamation of things to come in the Accounting class. It was at this moment that I had another "oh, no" (not to be confused with aha) moment in my Economics class. The Professor said these exact words, 

"Do you understand these short run and long run cost curves? :::blank stares::: Because if you don't get this your really in trouble. It's about to get really hard, and this is basic."

I wish I had taken a picture of the white board to show you. The diagrams behind him might as well have been pictures of spider-webs with random x and y axis' placed in different spots on the board.

And then to boot, he gives us a homework assignment that is due the day of the midterm. 

Already demoralized from the Economics class, I went to my Accounting class and got the second half was harder than the first speech. So, I am wondering about something. Do professors get together and talk about what they could collectively say to depress their students. Is the second half always harder than the first? Because, honestly I usually find the second half easier. 

I'm not sure what is going on, but I am sure of something... my last final is on December 9. That final is followed by 3 weeks of splendid vacation, and I am starting a countdown.

The Business School attacked... and I survived

For those of you who are regular readers, let me start by asking for your forgiveness for leaving you in the dark the last week. 

You see, it's been a whirlwind since my last entry. I studied for my accounting midterm, took my accounting midterm, began studying for my Econ midterm, and did the prep work (taping, spackling, etc. in order to paint my living room).

Let me start with the midterm...

Well, we had been warned from the first day of the quarter that the only way to learn accounting was to put lots of time in reading and studying (preferably in a hard chair). And I did put that time in throughout the semester, so I felt pretty good going into the midterm exam. In fact, I really didn't cram for it at all. I just did the practice test, stayed for the after class study session, and skimmed over my notes. 

Now remember this exam was a take home test. It was open book and open note, but the kicker was that it was fifteen pages of questions (about 40 questions). All of them were "short" answer. I had 48 hours to complete the exam and e-mail it back o the professor.  Welcome to Business School.

Thursday evening rolls around... After a full day of work and an Econ class, I have enough energy to outline the financial statements and do the first 3 pages. Friday I went to work (left home at 5:30 AM) and waited to work on the exam until I got home. After about 3 hours or so I finished the exam... in pencil. I then typed up my answers inserting graphs and correcting along the way. So I went into Saturday with a completed typed exam, but here is where the curse of the take-home reared it's head, the "re-check". Over the course of my "work" day I checked the exam 3 times. This took me 8 hours off and on in between doing work stuff. I finally sent the exam off to the professor at 4:00 PM.

After sending it off, I talked to one of the other guys in my group about the test and then decided to recheck my answers (I had already turned it in mind you). I found a mistake, but wrestling with my conscience I decided that I would not have found the error had it not been for my conversation with another student, I decided to let the submitted exam be the final one. Score one for the Business School honor code.

After that I enjoyed a nice dinner out with my wife (Ramen Noodle Bowls) and slowly came down from the exam high. Unwinding from a 3 day, 11 hour test wasn't easy. 

So that was Saturday night. Today is Monday and my group is gearing up for an exciting 10 day countdown until the next exam, ECON. And believe me it's much scarier than the capital letters I just used to describe it. I'll try and keep you updated as I prepare for this one. So stay tuned as we move from unearned revenue to shifts in demand. Oh yeah... I'll let you know how the living room comes out too.

Goodnight!

Business Education : Meet Joe the Plumber

First, check out this video...

Am I the only one who thinks this Joe the Plummer guy has gained way too much celebrity? Well, I think its because the facts have been mixed up. I'm going to attempt to use my business eduction to evaluate the situation. Here are the assumptions I think people are making about Joe the Plummer and Obama's tax plan:

1. As the business owner, he would be part of the middle class

2. Obama would raise the tax rate on all of his income

3. Obama's tax is assessed on revenue

4. Joe's income tax will increase significantly

I am assessing this from a purely economic standpoint.

Here we go...

1. As the business owner, Joe would be among the top 2% of earners in the nation.

2. The additional tax for Joe would be on the amount over 250K/ year. In the video, Joe estimates that the business would make 250K to 280K. Therefore the additional tax would be on 0-30K/year.

3. Obama says that the tax is based on Revenue. This is actually not correct. All businesses, like people are taxed on Revenue - qualified expenses (write offs). For Joe's business this means "net income" or "profit". Joe got it right when he said the business "makes about...", he was talking about net income.

4. Based on our answer to number 2, Joe's income that will be taxed at the new rate (39% instead of 36%) is 0-30K. That means that the additional tax that Joe will be responsible for is 3% of 0-30K or $0.00-$900.00. This will be on top of the $78,000 in taxes he would currently be responsible for assuming a net income of $280,000.00

So, is Joe an "average Joe"? Is the additional tax significant? Should Joe refuse the additional 30k in business because of an additional $900 in tax liability? Should Joe not buy the business because of the higher tax rates?

I say who cares. Shame on the media for blowing this so far out of proportion (i.e. follow up interviews with Joe, videos, fan sites, etc.). Shame on the Obama campaign for mixing up revenue with net income and saying things like, "spread the wealth around" - C'mon Obama, it's time for a business education. Shame on the McCain campaign for making a guy who will be financially elite (statistically) their champion for the middle class - C'mon McCain, what happened to the straight talk express. And shame on me, you, and the rest of us for paying attention to it.

Attack of the Business School: First Midterm

If you have noticed my entries occurring more and more on the weekends, it’s because my weeks have become completely squashed. Sometimes remembering them is like trying to remember what you saw while zoning out during a drive that you have taken 100 times before.

This week was just like that, and included the following evening activities:

Monday: Group Meeting

Tuesday: Class

Wednesday: Mentor Meeting and Group Meeting

Thursday: Class and Sleep (Finally)

This brings us to Friday... I settled down to start studying for the Financial Accounting mid-term. The test is next week on Thursday.

The professor was kind enough to provide us with a practice test from a past class to study from. He posted the practice test, supplemental materials, and solutions on an online education site called Blackboard.

I printed the practice test on Friday and spent about 2 ½ hours working the problems. I scored about a mid C without consulting my notes. I feel like this is a pretty good starting place. The plan now is to study all of the material (Revenue, Acc. Receivable, Inventory, Long Lived Assets, Intangibles, and general info) in the first part of next week. Then I’ll rework any of the practice test problems I missed or was iffy on.

…and actually while studying for this accounting midterm, I became very encouraged. Here I was flipping through the cash flows statement, the income statement, the balance sheet and other addendums, and the numbers actually meant something to me. I am beginning to understand which figures are solid and which ones can be manipulated by company management. The numbers are beginning to have life. 6 weeks ago I had little, if any, knowledge of what the financial statements really meant, now I am beginning to feel literate.

So, here I go… T-6 days and counting until my first mid-term in Business School. I’ll let you know how it goes.

Business School Returns: The 500 Level Course

For the first few weeks of this quarter (my first quarter in Business School) I have been under the impression that I was taking one relatively easy course and one difficult course-Economics 500 and Financial Accounting 500 respectively. But during the last Economics class, the professor said something that was a little bit scary... 

"That ends the principle's portion of the class. Now we are going to move on to what is commonly referred to as Intermediate Economics and we will dive in even further in the last part of the quarter"

After the professor made this statement he proceeded to explain indifference curves and the indifference map using calculus (not a required prerequisite). This was a far cry from the shifting of supply and demand curves, which we were talking about just ten minutes earlier!

At this point in the class, my face and the faces of most of my classmates went blank and we all began to slowly slink into our chairs. Although, it is comforting to know I wasn't falling down the black hole alone, I began to get very worried about the course. 

The problem was that I didn't have the right expectations of core Business School cirriculum. 

The core classes (i.e. accounting, econ, stats, etc.) end with 500. But what 500 really means is... everything you would learn in 101/201 jammed into the first 3 weeks, everything you would learn in 301 in the next 3 weeks, and 401+ in the last 3. These courses are not designed to be "refreshers" or to "cover the basics", they are designed to ramp up someone who has no business background in rather short order.

Here I was feeling great about having a business undergrad, but in 3 weeks I'm even with someone who majored in computer science or psychology. So much for the headstart.

So, what I do with my newly discovered wisdom? Study... hard, for both classes and count down the days until the quarter ends.

I'll let you know how it goes...

Watching Rome Burn: Taking a Break from Business School to Gather My Thoughts

Well, if you have a pulse, you have probably heard the news about the U.S. economy and the broader world economy this week. So what does it mean when the DOW loses 23% of its value in one week? (I picked a great time to go to business school)

I think this depends on your situation...

First, the DOW 30 aren't the only stocks to lose there value. The S&P 500 and most major mutual funds have also been hacked. The only index that hasn't taken a huge hit yet is the NASDAQ which is down about 3%, but tech earnings are coming in today. We'll see how long it lasts.

Here are two examples of some real life impact of all of this...

My Father who retired two years ago is in dire straights right now. He is 66 and is making small draws on his 401K. In 4 years he will be required to withdraw a higher percentage each month to comply with the 401K laws. So what's the problem with that? The problem is that the shares are undervalued. What he is drawing today may be worth twice as much in a few years (and was worth twice as much a few weeks ago). Since he is in very good health he is wondering if he might outlive his retirement. He's lost about 40% of his portfolio value. The bottom line is he is now selling about twice as many shares to collect the same income from his 401K.

I am in my late 20's and had about 30K in the market going into the last few weeks of turmoil. My new value is about 19K. I am invested in a range of mutual funds inlcuding emerging market funds. The one key difference for me is that my retirement horizon is at least 30 years. This means that while the shares I own are worth less, I get to buy new shares at the low price. If my monthly contribution used to buy 10 shares, it now buys about 20. So essentially, I am buying shares on sale- or at least that's what I tell myself. When the market returns, the average price I paid should be quite low, and I will realize a huge gain.

...yes I am trying to find the silver lining, but the fact of the matter is this is depressing. No one likes watching their or their parent's retirement halve in a matter of months, and recssion is a scary thought. What if I lose my job? What if my house is worth even less? What if I have to foreclose?

So, for my part, I'm going to try not to be affected. I've already turned off the news and I am beginning to think happy thoughts. Maybe this is the real cure. If we all fight the histeria, we could tip confidence (Malcolm Gladwell Style) and see a rebound in the markets. If the government can solve the credit crisis in the mean time we will be high flying again.

Sound like a plan?

Business School Begins: Meanwhile Back at the Office

Well, I am 9 days into business school and already fitting that profile of the fully exhausted Grad student. But, unlike some of my peers I still have that good old day job to go to, and this week the day job was more interesting than usual...

This past week, in the midst of slaving away at work, an all-day meeting was scheduled. It turns out that our regional VP and HR guy wanted to come talk to all of us about a recent employee survey that was conducted. 

Rewind... This was a basic anonymous survey with questions like, "do you have the tools you need to do your job?", "does your manager support you?", "would you recommend your company to a friend?", etc. etc. Well, I took the opportunity to inject some truth including a full page of comments about all of the issues that bothered me. In fairness I included some of the more recent positive changes as well.

OK, back to the meeting... We split into two groups... senior and junior managers- I am the latter. When the powerpoint fired up with the response graphs and comments I quickly discovered that I was one of the only people that had left comments. In fact, 70%-80% of the comments on the screen were mine. This was a little concerning at first, but as the HR guy (our moderator) started walking through them, people began to open up. 

One person agreed with my comment about upward opportunity. Another one began to elaborate on the micromanagement we all endure. A third person echoed my thoughts on the desire to get involved outside the operation (side projects). A fourth person discussed the centralized decision making - and the lack of junior level manager involvement. This went on for two hours! We went through the negative and the positive - I felt such a huge amount of relief. I wasn't crazy... I was just the only one speaking up.

After our productive discussion, the two groups came back together. The next step was to present a summarized version of our comments to the senior managers and vice-versa.  As expected, the senior managers began to ask for specifics and this is where the conversation broke down. No one was about to stand up and say, "yeah, so last week when you were micromanaging me...". It just isn't realistic.  So, our Senior Director, who is very intuitive, brought the meeting to a close and thanked everyone for their time. 

A strange ending to the day, but early this week (a week later) an e-mail came out from the senior director outlining the formation of teams to breakthrough the issues the junior managers brought up. What an amazing thing. We were listened to and changes are already starting to occur.

I feel like this is an important sequence of events that I will remember long into my career. I guess you don't learn everything in business school.

Business School Begins: Teamwork

As part of our core business curriculum, the program includes a course that is smattered throughout the first year which address teamwork and leadership. We had our first installment this last Saturday...

The day started off in a large break out room attached to one of the undergraduate residence halls. My group (about 50 people) began to trickle in at about 8:30 AM and by 9:00 AM we were all there. Name tags attached and eyes peeled, we awaited our guest speakers.

Now, the two people we soon encountered were actually a pleasant surprise. Your hopes are never too high at 9:00 AM on a Saturday so this was a welcome event. We had the Glasers of Glaser and Associates leading our session. They are a husband and wife team (both PHDs) that travels the world together teaching an array of topics having to do with teamwork and conflict-resolution. Our session was focused on raising delicate issues and responding to criticism. Here's a brief synopsis...

The primary communication method was skits, which sounds cheesy, but they actually pulled it off quite well. The little shows highlighted how "intent rarely equals impact" (Peter Glaser) and that if you want to get or give the real message, something deeper than ordinary communication needs to happen.

The Glasers explained that in order to respond to criticism, you need to dig deep for what the real criticism is and admit it if its accurate. This means forcing the details that led to the criticism out. This serves as a sort of decoding of the criticism.

In the area of raising delicate issues, they highlighted the need to take ownership of part of the problem, and work as a team with the person that the issue is being raised to towards a solution.

Some of it was common sense, but to see an actual conflict take place right in front of you really hit the point home. It also helped to see several different scenarios playing out to observe how using none, some, or all of their techniques would affect the outcome.

As a whole, is was a very good experience and has me thinking about how I come across to others in everyday life and during conflict. I'm sure it will remain a staple in the Business School cirriculum.

Business School Begins: Day One

Well, it's 1:05 in the morning and I am officially an MBA student...

I had the first day of classes beginning with Economic Price Theory and Financial Statement Analysis. And I can already tell that this is going to be a tough ride. Let me explain.

1. I had 10 days to prepare for the first day of class. This includes reading some 70 pages and prepping for one case for discussion - not a huge amount of work for the time allotted. Now, I have 4 days to prepare for the next class and then 2 days after that one - the calendar is looking quite small. The kicker here is that I only had assignments for one of the two classes tonight. The Price class had only reading assigned. That will change.

2. I have a mid-term in 6 weeks... 6 weeks! My entire undergraduate finance/accounting core is going to be taught in the next two weeks and then I need to learn, really learn this material on financial statements in the next 6 weeks. At least the asset side of things. Time to strap in.

3. I have a second mid-term in 6 weeks in the Price theory course on a bunch of stuff I have never fully studied. Strapped in and putting on a helmet.

4. I have to sit still for four hours, two days a week, for most of the next 3 years. This is proving to be much more difficult than I imagined. I think we non-academics have way too many things feeding our ADD (i.e. laptop, blackberry, tv, etc.). My attention span is about 1 minute and I don't know how I'm going to scratch my web-surfing e-mail checking itch mid-class.

5. I have to do all of the above and go to work every day.

So, yeah I am feeling a bit over-whelmed right now, but I am confident that it will pass. This is going to require a change in culture. Not just for me, but for my entire class of fellow MBAers. We are in this together.

Hopefully, by my next entry I will have sorted through some of these initial challnges, or maybe I'll be writing you from my Psychologist's office. In either case, stay tuned...

The MBA Degree and... Salary

When it comes to an MBA degree and all of the people in a program, the elephant in the room is Salary. So far it hasn't really come up in conversation, but we have all thought about it and thought hard.

The reasoning goes something like this...

"So I'm going to spend several thousand dollars (20K-200K) getting this "higher" education. What does it do for me? Well, it allows me to accomplish a goal I made when I was 19, it opens doors of opportunity for me at work, and oh yeah, I'm going to make a lot more money if I do this."

It has to be a factor for every one of us. Not that money is the most important thing, clearly it isn't. The most important thing is having a job that leverages your strengths and challenges you to grow - that is my two cents. But money is blood and breath, just like for companies. If we can make enough, then we are free to pursue our passions.

So, now that we are talking about the elephant, how much can someone with an MBA degree expect to make after graduation? In my program, it's about 90K/year including bonus. For me this would/will be a pretty hefty raise. Is it guarantee? No. But, with the degree and the connections that are made in an MBA program, chances are good.

So here we go... 2 years and 9 months left!

Board Game Theory

Tonight I was finishing the day with a few colleagues when I had a moment of epiphany. I asked one of the other guys a question which he didn't have the answer to. Jokingly, I said, "hey your a manger, you have to know these things". His response was somewhat sarcastic, but also very truthful when he said, "even if I knew the answer it wouldn't be good enough for you".

Now, most people would take offense to this response, but knowing the work culture that I exist in every day as well as I do, I didn't. This was actually a huge compliment, because I pride myself on understanding the big picture, and knowing the reasons why certain things are done. I was a kid who asked questions like, "Why is red the color people decided to use for 'stop'?". Now, I am the adult at work asking why processes are done a certain way, or why specific company decisions were made.

...but, in the midst of this exchange, something came to me... maybe it was just me. I have always thought that everyone was as inquisitive as I am, but that maybe they just didn't have the energy to always ask questions. Or, that they decided at some point in there life that it didn't matter anymore. However, it may be possible that different people need different information. Does that make sense?

Well here is an example. This is exactly the question I asked one of my co-workers tonight after I had this internal discussion with myself.

When you are learning how to play a board game, what is the very first question that you ask?

Is it a question about how the play is conducted, like what the rules are, or how someone has a turn? Do you ask questions about the board, the pieces, or the cards?

This was my colleagues answer... "How do you play?"

I always ask three questions in this order:

1. What is the object of the game, or how do you win?

2. How does the play happen?

3. Any other rules or nuances?

So for monopoly, the answers would be:

1. To bankrupt your opponents - this is usually done through acquiring monopolies, hence the name.

2. Each player takes a turn rolling the dice to move a specified number of spaces. Depending on where you land, you pick up a card, pay a penalty, win money, have the opportunity to buy property, or pay rent. If you own all of the properties of a specific color you have a monopoly and can collect a base rent, or build houses/hotels at a cost that will charge your opponents a much higher rent when they land on them.

3. If you roll doubles three times you go to jail, when you pass go you collect $200, and free parking is always a $500 prize.

So, what does it mean. It means that when it comes to my colleague, he wants someone to tell him how the job works- what do we use for dice? What is the board for?

I want to know, "why are we here? What is the goal?". The natural progression of my approach is to figure out how to win the game once I hear what the object of the game is. The pitfall for me is that I often don't listen to the wisdom of those who have a lot of practice playing the game. The guys like my colleague usually get really good at what they are doing- the playing, but can forget why they are doing it or what they are ultimately after.

Two different approaches... both right and both wrong. What a learning experience and what a strong case for working in teams with differently minded people.

Who knew the Parker brothers had so much to offer on team dynamics.

Back to Business School: The First Assignment

With orientation in the past all that separates me from my first day as an MBA student is 6 days and a few hours. I have all of my books and syllabai, binder, token branded MBA bag, and a multi-colored pen.

I am beginning business school with Financial accounting and Business Economics. With the above mentioned sure-footed tools in hand I sat down to begin preparation for these first two classes. Tonight my focus was on the accounting course. The first assignment to come to class prepared with is a series of questions about a particular company's financial statements... you remember, balance sheet, income statement, and statement of cash flows.

The questions were pretty simple, mostly just being able to remember where stuff is enough to find it. Things like comparing the cash balance in 2005 to 2006. So how long did it take me... 2 hours!

First I pulled up the financial statements online and then began to answer the questions on the question sheet using pencil. Next I typed up the answers to the questions (using complete sentences). Finally I reviewed and edited the answers.

...So right now I am a bit nervous because this was a very fluff minor assignment and it took me two hours. I also have to read three chapters between both classes before the first day. I can't even imagine what this is going to be like when I have only a day to come up with assignments between classes...

But, I'm sure that it will get easier. I'll become more productive and I'll be able to count on my study group for support as well.

So that's it. Assignment 1 done and if averages apply, I only have 36 more assignments for this class. Well that's not so bad, right?

See you at the Business School Library.

Back to Business School: Orientation

I mentioned in my last post that I had attended orientation for school recently...

It began on Friday at 1 PM. All of those of us who made the cut entered our new business school and filed into the lecture hall. The Dean of the program kicked off the orientation with a 90 minute talk about how to get the most out of our experience. Although sitting and listening to someone talk for 90 minutes isn't something I have done for a long time, the information was extremely valuable. He set many of us at ease when he exposed that he didn't "read everything" when he went to business school and that he had a few classes he was "lucky" to get through.

Next we heard from the library guy, career services, some of the clubs, and more. By the end of the "half day" the majority of us were fried. It seems this experience of sitting and listening for several hours (3 hours) has become alien to what is now a bunch of cubicle loving, plane riding, impatient... grown-ups. Luckily, the day ended with a food/cocktail hour. (This was the first event I went to, but this and others seem to always have some sort of food and alcohol incorporated). everyone seemed to be their normal selves after a drink and some calories.

The second Day (09:00AM to 04:00PM)... began with some announcements, but quickly moved to an introduction to one of our professors. Next, we heard from a panel of current students who gave us the inside scoop on what it was really like to do the Evening MBA program. Everything they said seemed to lead back to a description of how tired you always are and how important it is to network. I guess that's honesty.

In the middle of the day we took our class photo. While we were posing, a female undergraduate student began taking her clothes off. By the time she was done she was down to a bikini and completely oblivious to the whistles and laughter coming from our group. She was about 100 feet away, but she was the only one within sight of us and obviously very involved in her book. It was a great moment.

We spent the remainder of the day hearing from some of the staff and doing a mock case study. None of us were ready for that...

So it's actually happening. After years of talking about going to business school, and putting off the GMAT, I am finally doing it. Bring it on!

Back to Business School: The Evening MBA

One thing that I don't think I have mentioned in my past entries is that I am pursuing a fully employed or Evening MBA.

My decision to do business school in this way was based primarily on the fact that I have a mortgage payment to make each month. There's also the work experience piece too, but it was mostly about money.

As far as the degree goes, there will be no difference between myself and someone who completed their MBA in a full-time program. In fact I will have an advantage... not just an MBA, but an additional 2 years of work experience.
However, one thing that worried me was the attitude of the school. At info sessions for the program we were told repeatedly that the Evening MBA program was not a good place to be if you are a career changer. I took this advice to heart, but soon after I began the application process my intentions changed.

Well, by the time I was accepted, I was job searching and hoping the MBA program would be able to help me expand my network. To be honest, I was not sure if I had made the right decision, but it was much too late change it. Too my surprise, I am not the only one in this situation. In fact, almost every person that I have met in my program or the Full-Time program is looking for a career shift. Some of them would like to stay with their current employers, but even there they usually want to be in a different field (software engineering to marketing, business development to operations, etc.).

When I think about it, this makes complete sense. Why else would a person spend several thousand dollars on Business School. The MBA is a way to expand your horizons whether you can afford to quit working or not. And, while most of us are in this to learn and better ourselves, we are also in it because of the opportunities to go places we couldn't go otherwise.

So here we go... 10 days and counting until I can call myself an MBA... Evening MBA student.

The Upside

From the moment I began studying for the GMAT and putting together my application for business school there's been a question looming in my mind. At this point with my first class less than two weeks away, the answer is undoubtedly yes, but it didn't start that way.

I asked it of myself when I sat down to write the first application essay. The question was, "Do I really want to do this?" . Do I really want to write essays again? Solve word problems? Analyze cases? Read text books!?!? Its definitely a hump that I had to get over as a prospective MBA candidate.

I have now come to believe that this school stuff is what stops most people with undergraduate degrees from moving into masters programs. Because, let's face it, writing essays, doing homework, and taking tests is really kind of annoying. But, what we all forget about our first four years are the great things that come along with being a student.

So... what's the upside? Here are just a few benefits that I found out I will receive for being a student at the Business School.

1. Gym Membership

I now have access to the premier work out facility in my area for free (included in the several thousand dollars a quarter for tuition). I went and toured it the other day with my wife, who also gets access for $15.00/month. They have multiple basketball courts, squash, racket ball, volleyball courts, a climbing wall, a pool, an indoor track, tennis courts, and more. I am also eligible to play in the intramural league.

2. Transportation

Since the school is in a major metropolitan area we are given transit passes for $17.00 a month that are good on any trains, buses, or street cars. This is a HUGE discount!

3. Student Discounts

This is amazing... movie theaters, restaurants, bowling, pool, the list goes on and on.

4. The ability to think and dream without consequence

Although this isn't a direct perk, most of us work in jobs that are grounded in, well, reality. While an MBA program has heavy application, as a student you are allowed to dream of what could be without immediately discussing the cost/benefit, feasibility, and facing the army of nay sayers. Eventually the ideas have to make it to earth and be well thought out, but there is that in between time that you just get to wonder.

So I am not looking forward to many of the school like assignments again, but a least when I get one I can take a subsidized ride on a bus, to a coffee shop that offers 1/2 priced donuts to students, and dream about the answers. Then when I am finished, I can head over to the gym to blow off some steam- all for mere thousands that I don't have to pay pack until 6 months after I graduate.

Ah the life...

Thomas Friedman's Business Education: China for a Day

In a recent interview on Meet the Press, Thomas Friedman discussed the "Energy Revolution" that he thinks is necessary in this country. He discussed, and wrote a chapter in his new book, about what it would be like for the U.S. to be "China for a Day" in order to get the ball rolling on the new revolution.

Obviously he was referring to the now famous ability of the Chinese President/King to wave a magic wand and control industry. The best example to date of the magic wand is the shutting down of factories 2 weeks prior to the Olympic games in Beijing.

So what would it be like if the U.S. President could/would wield absolute power on industry and government in terms of a move towards alternative energy and innovation? Well, I think we would see the bypassing of congress to implement instant tax credits and write offs for companies using clean energy, a carbon tax, mandatory shifts to production of non-petroleum vehicles for the U.S. car market, and several wind/solar plants being built in the next year. We would also see some major public dollars invested in science education, alt energy start-ups, and grant money for the submission of new ideas for alternative energy.

If the above were to take place, not only would we see a revitalization of our employment and dedication to innovation (the single greatest factor that led to American domination of the 20th century), we would create an entire industry in which we would be the captains. We could engineer, manufacture, implement, test, and SELL, SELL, SELL the new technology. In addition to the advantages to our foreign policy, national security, and education system it would be the greatest business accomplishment of our generation.

Friedman agrees... when approached by young Chinese who tell him that America got to "go dirty" for 150 years and now its their turn, he tells them to go ahead and take their time. Why? Because within 5 years America will be able to develop these clean power sources and when "China is choking" on its own pollution, we can sell the new technologies to them.

Thank you Thomas Friedman for the business education. Although, I don't think the U.S. president will ever be able to speak as a dictator (nor should he), I can only hope that our country wakes up! Because if we do, and we own this revolution not as an obedient people, but as a free group of citizens, we will win big.

Back to Business School - More Summer Reading

In the beginning of the summer I spent a few days going through a classic Business School Novel... First Break All the Rules. The basic premise of the book is that the conventional management rules are incorrect and must be broken in order for a company to achieve greatness. In this book, Gallup challenges the notion that anyone can do anything if they set their mind to it, they take on the idea that employees should be "well-rounded", and they preach that the best managers play favorites.

The mantra that is repeated over and over again in this study of exceptional managers is that a manager should not worry about what is left out of an employee, but focus on developing an individuals strengths. In other words, don't ask Michael Jordan to practice his golf swing.

The book makes a great case for the idea of leveraging the strengths of individuals towards company goals. Just imagine everyone at your company doing what it is they do best for the majority of each of their days. What would that look like?

The authors spend a lot of time talking about skills and talents. They say that talents are a way we repeatedly look at or do things where as skills are specific things we learn how to do. As an example, the analytically talented person is always looking at how and why something works, mentally or physically tearing things apart and putting them back together. Someone with an achiever talent is measuring life in completing goals - they seek to complete things each and every day. Since these talents are ingrained in our method as people, rounding us out on talents we lack doesn't work. Instead, the book suggests that we should be repeatedly challenged in our areas of talent- thus rejecting the "well rounded employee" idea.

It further asserts that energy put towards developing talents will yield a much larger growth rate. Taking the MJ metaphor further, the percentage of improvement Michael received from practicing basketball from college onwards was far greater than it would have been from practicing golf. There was more bang for the buck in hoops.

As an employee, this is such a refreshing thing to hear. Imagine your boss coming to you and saying, "Let's figure out what your good at and gear most of your work around those strengths - I want to push you in these area. Then, let's find your weaknesses and improve them to a functional level, but push off most of the work that you are weak in to another team member who has a strength in that area." Now apply this across an entire organization and what happens? I'll tell you, the Chicago Bulls in the 1990s.

This was definitely a book worth reading before heading into Business School and I will definitely apply the principles it presents throughout my career as a manager. It is highly recommended to any current or future manager.

Bowling, Billiards, and Movie Theaters (Business gone awry)

When I was a high-schooler in the not so distant past I lived in a small suburb of Los Angeles in Southern California. The city had about 50,000 residents and we were an hour's drive from L.A.

I remember driving with my friends to the local billiards hall and playing pool for several hours while listening to Witchy Woman and Iron Man on the jukebox. The cost was $6.00/hour for the table, so a group of four of us could get some quality time in for not a lot of cash. I also have fond memories of moonlight bowling on Saturday nights and several visits to the movie theatre through the years. But lately these staples are in danger.

During my trips home the last few years I have noticed that the movie theatres and bowling alleys are a shadow of their former glory and the billiards places have been replaced by restaurants or day care centers. At the same time a rise in upscale theatres like the Cinerama Dome in Hollywood, CA, swanky pool halls like the Parlor in Bellevue, WA, and even uppity bowling alleys like Lucky Strike is hard to ignore.

So what's the deal? Are teenagers no longer customers? Is alcohol required to be a part of everything we do? Are business owners getting greedy? Is real estate too expensive to just rent pool tables and take in a few extra quarters at the jukebox?

Whatever the answer , it's a triumph for large business and a tragedy for teens. The mom and pop pool halls, bowling alleys, and movie theaters can't make enough money serving just the teens, and the 20, 30, and 40-somethings are heading to the trendier upgrades. As a result, the smaller establishments are closing down or are run down and will soon be gone completely. And, with alcohol almost always a part of the new business plans, the teens are out.

Which means that my teenage memories of pool halls, plain old movie theaters, and Saturday nights on the lanes are beginning to sound a lot like my parents' memories of the penny arcade, the five and dime, and the milk man.

Am I really getting old already...?

Beware of Mumps, Measles, and Rubella in Business School

The countdown has begun... I begin business school in less than thirty days and I am beginning to feel the pressure.

So what kinds of things have I done to prepare? Well, I have been reading business classics most of the summer (First Break All the Rules, Purple Cow, Built to Last, etc.) I have been seeking out opportunities to get involved in acquiring new business at work. I have been reading the financial news and paying closer attention to the markets. And, I have been watching the olympics like crazy (does that count?).

The one thing that I have been a bit unprepared for, though, is my immunizations. When reviewing the checklist of all of the things I needed to do before I could start school I must of overlooked it. The deadline for the MMR vaccines is in a few days and I have only had one that I can prove. Most schools require two rounds of vaccination that are at least four weeks apart.

I set out to solve this problem with the most reliable source I know. No, not google... the original google; Mom. I called her in the morning a few days ago and by that evening I had an unofficial vaccination record. It turns out I had an MMR shot way back in the early 80s - you know, before computers. Finding out I had an early shot was a positive development, but like in an episode of 24, (the Jack Bauer variety), solving one issue led to another. How do I get an official record of the vaccine from the 80s?

A call to the latest physician that I had in my hometown led to the discovery that his practice had been sold twice and eventually placed in the hands of a well-known HMO, Kaiser. I finally found the records office of Kaiser and called them. They said it would be no problem to get my records, but that I would have to fax a form and wait two weeks for them to "check the files". Were they serious? Kaiser... meet scanner. Scanner... meet Kaiser.


Since two weeks was too late I began to consult the 2nd most reliable resource at my disposal... yes, now google. Google led me to a county agency that indexes these sorts of things, but a phone call revealed that it didn't have any records before 1989- I feel old for the first time in my life.

I'm now out of ideas, so I send an e-mail to the University asking for a delayed deadline for the vaccination requirement.

I never received a response, but I decided to try my High School as a lsat effort. Turns out my High-School transcript has my immunization record on it. Presto, fax, and fax again, the University has the info and approves the documentation. That was close...

Ya' know, we read lists of what is required in order to get into business school so many times... you must do well on the GMAT, have a solid GPA, 2-3 good letters of reccomendation, a few good essays, etc. But don't forget the all important one that can actual keep you from registering at a public instituion, vaccinations. Oh yeah, and don't forget to file for the FAFSA either...