MBAs make good managers, not necessarily good leaders: DDI study

Moneycontrol BureauA research by consultancy firm Dimensions Development International (DDI), says that when it comes to the full range of leadership skills required in today’s complex business environment, an MBA may not always be the best choice."MBA degrees did indeed make better managers," says Evan Sinar, DDI’s Chief Scientist and Director, and author of the report."Unfortunately, the same couldn’t be said for their impact on stronger leadership," he says.The research is based on 15,000 leaders across 300 companies and 18 countries who participated in assessment center evaluations over the last nine years.DDI’s research compared the performance of undergraduate business degrees and MBA degree holders against eight leader skills: financial acumen, business savvy, compelling communication, driving execution, driving for results, entrepreneurship, influence and inspiring excellence. These two groups diverged on several key leader skills. Specifically, though MBA graduates consistently outperformed business degree undergraduates in financial acumen, business savvy and strategic decision making, they fell short comparatively in their coaching, results orientation and visionary leadership skills. "While management skills are consistently higher for MBA graduates, we were surprised to find there are several skills that are lower," Sinar says. "These are significant shortcomings when you consider the cost of the investment," he says, adding, "MBA students need more well-rounded background and experiences to learn the important interaction and inspirational skills they will need to truly excel as leaders," says Sinar. Sinar feels these skills are developable with sustained focus, but can’t be learned in an academic classroom. "Skills practice with employees, expert coaching/mentoring and abundant on-the-job application opportunities are critical to make these challenging skills stick," he says.For aspiring leaders, it’s important to strike a balance between the critical technical expertisethat most undergraduate degrees provide, with an awareness of common skill gaps that, if left unchecked, will limit overall leadership effectiveness and career mobility. Excerpts from the DDI release:Many degree programs put a heavier focus on developing graduates’ technical abilities, and much less emphasis on interpersonal and leadership skills. Though some degree programs fill this gap with group projects and informal leadership opportunities, it’s often up to the student to plan for and seek out these opportunities. Engineering, law, IT, and natural sciences graduates are particularly likely to fall behind their peers from other degree backgrounds in leadership skills. This isn’t always a problem when graduates start out at a new job as an individual contributor, but can hold them back when they want to move into a management position. It’s also a way to set a candidate apart from the pack of other graduates in the field, if they have put the time and effort into gaining the skills others lack. Sinar’s advice: "Get as much information as you can—using your career planning office if you’re still in school, or working with your HR department once you’re in a job—to know your leadership-related strengths and weaknesses and invest in development opportunities to give you the skills you’ll need and plenty of time to practice them before you need them."