Pushing MBA’s Out of the Driver’s Seat

July 14, 2011 by  
Filed under Economics

Long-time readers know that Mr. ToughMoneyLove is not a fan of MBA programs and, generally, their graduates. The former are mostly cash machines for students looking to borrow their way to an upgraded life. The MBA graduates, if they learn anything at all, it’s to bean count their employer into bad decisions. Witnesseth: Wall Street 2008 and U.S. car companies. I’m not the only one who thinks we need more engineers and fewer bean counters.

Bob Lutz, former vice-chair at GM, thinks the engineers need to be put back in charge of the automobile companies.  I like this quote from a recent article on this subject:

The auto industry is actually a terrific proxy for a trend toward short-term, myopically balance-sheet-driven management that has infected American business.

One of the outcomes of balance-sheet focused management is that the engineers with the most experience are shown the door in favor of new grads who can be paid less. This gives us products designed by MBA’s who don’t know anything about product design and by baby engineers who are just learning what’s up. That’s a recipe for a crappy product and a poorly run business.

Think of the benefits to all of us if we shut down 75% of the law schools and business schools:  Better products, better companies, fewer wasted hours in class, fewer student loans, fewer bankers trying to screw us with goofy financial products, and fewer ridiculous lawsuits filed by starving attorneys. What’s not to like?

Have you ever heard anyone say this:  What we need are more MBA graduates.

You can read more here.

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