Until very recently, a graduate of a well-respected MBA program could pick and choose among plum positions at top investment banks and consulting firms. Now, according to a recent article in The New York Times, the job market for MBAs has rapidly worsened, and that’s reflected both in the students’ choice of courses (higher enrollment in leadership and crisis management classes; fewer in e-business) and in the number of companies actively recruiting on campus. The Times article states that “This year, far fewer companies 30% fewer at some schools are visiting business school campuses to recruit, and those that are have made clear that their hiring needs have plummeted.”

For a timely, expert perspective on MBA recruitment, MWorld’s Shari Lifland interviewed Sherrie Gong Taguchi, author of Hiring the Best and the Brightest A Roadmap to MBA Recruiting (AMACOM 2002). Ms. Taguchi, herself an MBA, was for the past 7 years Assistant Dean and Director of the Stanford Graduate School of Business MBA Career Management Center.

Here, in Part I of the interview, Ms. Taguchi discusses the state of the MBA in American business today. In Part II, which will appear next month, she gives a detailed, “insider’s” perspective on the specialized world of MBA recruiting.

Shari Lifland: In the preface to “Hiring the Best and the Brightest,” you state that the brightest employees are always in strong demand. No doubt you conducted most of the research for your book before the current economic downturn. Would you say that your statement is still true today?
Sherrie Gong Taguchi: In short, yes, great talent is always in demand, if you believe that people are an organization’s most valuable resource its competitive advantage. In an economic downturn, people are even more critical to an organization’s surviving and thriving.

The research is the synthesis of my career spanning more than 15 years and drawing on the expertise of more than thirty colleagues who have been around a long time and are incredible recruiters and managers of people. During my years of heading up recruiting or advising executives on it, there have been two market downturns -- in the early 80’s and 90’s, plus the dot.com frenzy. In the book, I tried to offer strategies, frameworks, lessons learned, best practices, tips, and tools that would be valuable whether companies are in a war for or an abundance of talent boom times -- or in the middle of a downturn.

As an aside, I think the book can be even more helpful to employers now in the economic SLowdown. With hiring uncertainty and layoffs, it is an opportune time for organizations to step back, reflect on the people who will make a difference to their success, and do something about it or improve on it. This means recruiting great talent AND keeping them motivated, engaged, and developing.

It’s a unique window of opportunity to create bold and enduring strategies and plans that will serve organizations well when the next war for talent hits.

SL: How important is an MBA degree in today’s marketplace?
SGT: It depends on whom you’re asking -- their industry and specific organization, where the degree is from, and the individual. For some industries and companies, the MBA and all that it means, is more important than for others. Ultimately, it’s the individual MBA being hired who matters, but where the degree is from brings with it a relative level of quality, co-hort experience, faculty interaction, and caliber of rigor and relevance.

The value of the degree in the marketplace is really 5-fold. It:

Broadens horizons gives you exposure to industries, functions, and locations that might not have been within your sphere Provides a strategic and general management perspective and a multi-disciplinary foundation across the core business functions; Gives you a lifetime connection to a close-knit community of co-horts; Offers entrÙe into arenas that might not have considered you before the MB Increases confidence and flexibility in one’s career through dynamic job/career changes

SL: Are there some industries or areas of expertise where an MBA is crucial, and others where it could even be regarded as a detriment?
SGT: For some industries that have traditionally hired large numbers of MBAs, it is more crucial and one might say, more valued. This would be the case for industries that are consistently the top hirers of MBA talent, for example: management consulting (especially strategy firms), investment banking and management, venture capital. Additionally, entrepreneurial ventures and high technology, and consumer products companies recruit heavily for a subset of roles such as business development, marketing, strategic planning.

Having an MBA can be regarded as a “strike against you” in specific situations and organizational cultures where:

There are lines of demarcation: the “haves” and the “have-nots;” There is low morale and employees don’t feel valued or developed, and so they view any newcomers, especially the high-priced, younger ones, as a threat; MBAs have come in and made a bad name for those that succeed them by being arrogant, not a team player, or have leaving the organization without making a valuable contribution.

I’ve worked with companies across a variety of industries in which an MBA could be a detriment, but the ones that proactively recruit usually value MBA talent overall and do their best to pre-empt any lack of acceptance within their organizations.

Personally, I’ve found my MBA to be an advantage, especially in HR. I’ve come across a few unenlightened senior managers who viewed HR more as personnel not as an integral part of the business and strategic direction. Understanding business and being able to contribute and engage with colleagues from operations, to finance, to marketing, engineering and to the CEO level, has been a worthwhile benefit for credibility and ease in working with and through others.

SL: Why recruit MBAs?
SGT: I’m a believer that talent is what sets a company apart from the rest. The human resources the people are a company’s competitive advantage and most valuable asset. They are also the life force, the energy that sustains and moves an organization forward.

Here are just a few of the many compelling reasons why companies engage in MBA recruiting:

To bring in specific skills and knowledge that the company needs when there are gaps and not enough time to grow the competencies internally. For example in some roles in strategy, finance, operations, or marketing. To build bench strength for future management leaders or to infuse the organization with fresh energy and perspective. The competitive landscape may have changed rapidly new entrants, new rules, new economics. MBAs can bring a formidable mix of brainpower and creative ideas, if done well, to synergize with existing seasoned managers. A company may have a large number of openings in an area of growth. MBA recruiting is a viable source of candidates that is also relatively good value for the money.

SL: What unique skills and value do MBAs bring to an organization?
SGT: These are not exclusive to MBAs, but a high proportion of top MBAs embody these qualities and possess these skills:

- A strategic, general management perspective
- Problem solving
- Ability to lead or be team players
- Entrepreneurial spirit
- Comfort level or expertise with technology
- Creativity
- Agility to adapt
- Intellectual curiosity
- Fear of being bored
- Ambition
- Strong work ethic
- Grounding in the functions/disciplines of business
- Exposure to theories/frameworks/models/tools that are classic as well as leading edge
- An integrated approach to utilizing all of these for business challenges and opportunities

On a more personal level each MBA brings his/her repertoire of experience, skills, and abilities. Typically, this translates to:

- Exceptional education and academic record
- Distinguished track record of work
- Experience and personal achievement prior to the MBA
- Ample management and leadership potential.

SL: What effect has the dot-com debacle had on MBA recruiting?
SGT: Start ups have become more thoughtful in their approach to HR and recruiting. They’ve refined a great deal. Established companies, who were caught off guard by the dot-com frenzy, retrenched and learned valuable lessons, emerging stronger and more competitive.

The dot-com frenzy may have been brief, but it did change the scenery substantially, particularly for companies recruiting MBAs. At the height of the dot-com popularity, some established companies, got the wake-up call to retrench th eir strategy, rethink their plans, and reposition to address the reasons MBAs were often reluctant to join them. By rediscovering their strengths and getting back to their basics, they have become more competitive.

The lessons learned were:

Not to take success for granted. To leverage their marketing prowess and tell their success stories. Employees want a piece of the action. If you can’t offer stock options, at least offer career options invest in employees’ learning and development. The need for speed. Even in a soft job market, the best candidates have options, and you’ll need to have an infrastructure and processes in place not to lose out. Most importantly, culture is critical to attracting and keeping talented employees and stability is not a bad thing anymore. After the whiplash of the dot-com Act I, MBAs are even desiring the “S” word.

About the Author:

Sherrie Gong Taguchi is an HR professional, educator, and author based in London. She was VP of University Relations for Bank of America and Director of Corporate HR for Dole Packaged Foods and most recently, for the past 7 years, Assistant Dean and Director of the Stanford Graduate School of Business MBA Career Management Center, where she also headed the School’s Management Communication Program. Sherrie earned her Stanford MBA in 1989. She is working on a second book for individuals aspiring to bold, dynamic, meaningful careers.

If you would like to purchase “Hiring the Best and the Brightest” or learn more about AMACOM’s comprehensive list of business titles, go to www.amanet.org

.