How I chose my B-School
Introduction
September 1916, somewhere around Somme, France
From their trenches, the German command sees a line of infantry charging like madmen, rifles in hand. The Battle of Flers-Courcelette had begun. Unfazed by the wave, similar to the innumerable waves that they had shredded over the months, the command orders the machine gunners to open fire.
As the columns falls to the German lead, the relative calm of the Somme countryside is penetrated by the low rumble of fuel-driven engines. The German command froze in horror as massive steel machines rolled out of the horizon - the British Gun Carrier Mark I, known as the Mark I Tank - had arrived!
I know, you must be infuriated. You are here to read on how I chose my B-school, and I am sharing stories from the First World War. But, I can assure you, this anecdote holds a close resemblance to what we are discussing today.
When we start our journey to pursue PGDM, our entire focus lies around doing our best to ace the entrance exams. Coaching institutes will push the narrative down your throat:
"Bring 99.xx percentile in CAT/XAT, and over 240 in NMAT, and you are set for life!"
Though it is significantly important to score great in the exams, it's just the infantry charge. It seems challenging to begin with, but the more you practice, the better you get at tackling them. The real challenge arrives when the Mark I tanks of GDPI and college selection rolls in.
This blog doesn't focus on GDPI - that monstrosity deserves a whole post of its own! Here, I would like to focus on college selection. Sounds easy? Trust me, nothing is easy on this journey! But that's why I am here, giving my 2 cents on how I chose my B-school.
Disclaimer
Hold up Willi Wonka!! Not so fast... Let me put out the disclaimers first.
This is, in no way, a definitive way of selecting colleges. This is a process I have used, and something that makes sense to my archaic Mechanical Engineering brain. Obviously, you would be spending 2 years of your life at a college, and howsoever you decide to select it, it should satisfy your unique needs.
With that out of the way, let's get started
Classification of B-schools
As a demographic group, people of the Indian subcontinent are predisposed to categorize similar items into progressively depreciating asset classes, each class being lower termed less desirable in worth and value than the one above.
Think about it! Remember the time when you celebrated the 'first class' batting of Virat Kohli, or condemned the 'third class' state of roads in India? This stratification has been ingrained in our psyche, thanks to centuries of oppression by our rulers - domestic and foreign.
The problem arises when you use the same scales to weigh an entity as delicate as a B-school. Obviously, B-schools have good and bad sides, however, the moment we stratify them into tiers, a false perception is created about the quality and desirability of the course provided.
I agree, classification of B-schools are necessary, but the classifications must be done horizontally, rather than vertically.
Horizontal classification of B-schools
As the name suggests, this method of classification takes two of the most important factors of a PGDM degree, and uses them to horizontally spread the B-schools. Though both of the parameters are independent, when used simultaneously, gives a holistic view on why a specific school is selected.
The parameters used are market desirability and overhead costs.
Market Desirability
We all make up exquisite answers for the dreaded question Why MBA, but deep down, the only reason we do it is to accelerate our careers, earn better, and secure the future of our families. Thus, it is imperative that the diploma or degree we receive at the end of the 2 years of toil must be desirable in the dynamic market landscape.
A corporate hires an associate based on the skills they possess. A desirable PGDM course would inculcate desirable skills in their students, while the ones that aren't as desirable will inculcate obsolete skills, which make the associates less likely to penetrate the competitive market.
But what makes a course desirable? Being part of the recruiting team of my company for the better part of a year, the following pointers have been noted that makes an associate desirable:
- Skills:
To the surprise of no one, the skills that an associate brings with them makes the bulk of desirability. In a market landscape that evolves over the quarter, it is important that the associate is well-equipped with the skills needed to adapt to this market, while providing value to the organization.
Thus, courses that provide a plethora of hands-on experience, powered by case study evaluations, problem-solving, and innovative brainstorming, play a major role in inculcating market-ready skills. - Experience:
The easiest way of solving a problem is having an idea of how to solve it. It is literally how the billion dollars worth vaccination industry is thriving - teaching our WBCs how to tackle an actual microbial infestation by mimicking one. On a similar note, courses that provide students with ample experience through industry competitions, as well as through competitive internships, make desirable assets that organizations prefer to invest upon. - Longevity:
An MBA is a long-term investment. A student invests a significant amount of funds to ensure that the things they learn throughout the course will bolster their careers for a significant amount of time. Thus, organizations tend to prefer students who possess skills that experience significantly lower threats of being made obsolete by rapidly developing technologies.
Based on these factors, I have segregated the market desirability of various courses into the following brackets:
Flagship
A PGDM course is termed 'flagship' when it provides the student with indispensable, market-ready skills, provides excellent market exposure and internships, encourages and exposes students to paradigm-defining management competitions, and brings in organizations that provide front line roles to its students.
All of the students who wish to pursue PGDM expect to do so from an institute that provides a flagship PGDM. However, flagship PGDM courses are highly competitive courses to get into, demanding stalwart performances in the entrance examinations.
The PGDM courses provided at early first-gen IIMs, the Mumbai campus of NMIMS, JBIMS, FMS, flagship IITs and XLRI are some of the elite flagship courses in India. This is not an exhaustive list, and you are expected to add to this list.
Eminent
A PGDM course is termed 'eminent' when it provides the student with skills that make them competitive in the market. Though a notch below 'flagship' courses, eminent courses aren't undesirable at all. On the contrary, they are quite sought-after due to the versatile student base that these courses attract.
An eminent PGDM course will provide students with decent market skills, along with exposure to eminent management competitions. Based on the student's capabilities and mettle, one can compete toe to toe with someone with a flagship PGDM degree.
The biggest drawback is the rampant misinformation associated with these institutes. Fueled by the lack of reliable information, a negative perception of non-IIM institutes, and a massive focus on the first-year remuneration in a post-MBA scenario leads to students and parents overlooking eminent courses.
The PGDM courses provided at late first-gen IIMs, early second-gen IIMs, some supplementary PGDM courses at major first-gen IIMs, alternate PGDM courses at NMIMS Mumbai, along with core PGDM programs in GIM, IMT, IMI, GLIM, as well as some IITs and NITs are some of the eminent courses in India. Again, this is not an exhaustive list, and you are expected to add to this list.
Upcoming
A PGDM course is termed 'upcoming' when it hasn't made major ripples in the market, but discussions around their viability has started. These courses are significantly easier to get into, however the actual benefits of the course would not be visible right after its completion, and would take significant efforts from the students to derive favorable results.
These courses provide some industry exposure, however it lags behind significantly from the flagship and eminent courses. The PGDM courses suffer from lack of viability in the market, remoteness of the institute, or a lack of alumni base, all of which hinders its impact on the market.
However, if the student pursuing these courses are significantly skilled, carry impactful work experience, or have decent industry connections, they can still make it big in the market. Constant upskilling, and effective marketing of skills is required to fairly compete against the flagship and eminent courses.
The core and alternate courses provided at late second-gen IIMs, third-gen IIMs, new IITs and NITs, PGDM courses provided by flagship or eminent institutes at alternate locations, such as NMIMS Hyderabad, NMIMS Indore, GLIM Gurgaon, and some of the other privately owned institutes with intimate industry connections are some of the upcoming courses in India. As always, this is not an exhaustive list, and you are expected to add to this list.
Obsolete
PGDM courses that do not have a major impact in the post-PGDM scenario for a student is termed as an obsolete PGDM course. They provide significantly low market exposure, has limited infrastructure, and is unable to inculcate skills that are needed in today's dynamic market. For people who are looking to 'advance' their career post PGDM, these courses are not recommended.
Another aspect of such obsolete courses are knock-off courses, known to the management world as 'MBA Equivalent' courses. These are not PGDM courses by any length of the term, but are courses that seem like one. Wolf in sheep's clothing, if I can say so myself. These courses will drain the applicants financially without imparting anything substantial to the student's skillset.
Some examples of such courses are PGDM courses offered at state and central universities, older MBA colleges that have failed to evolve with the times, and some new-age 'business schools' like Master's Union and SDA Bocconi's Asia Centre. This list too is not exhaustive, so you can add your institutes here.
Overhead Costs
It is imperative that costs play a major role in determining which institute a student selects. Though an exact set of data is not available (a bane for a PGDM aspirant!! Future market analysis project anyone?), it is estimated that over 80% of Indian students fund their educational aspirations through banks and NBFCs.
Thus, it is important that institutes are also segregated based on the financial contribution they require. I have segregated the institutes into the following brackets:
Based on these discussions, we can generate a cost-to-desirability matrix that will assist us in taking an informed decision.
Why I chose GIM over NMIMS - A managerial take
When I informed my family, my coaching institute, and my guides and consultants that I was opting to pursue my PGDM from GIM over NMIMS, let's just say I was met with stiff resistance.
"Have you lost your mind? Narsee Monjee is a massive name in the industry! How can you overlook that?"
"Won't you regret not studying in a Tier-I institute?"
"You will have limited opportunities in GIM! How can you justify the RoI?"
These are just a handful of questions I was bombarded with. I am sure you will be bombarded with similar questions if you take a risk of this magnitude. So, let me explain how I evaluated my scenario and landed on the decision.
Analyzing superficial benefits and limitations
Before I dive deep into numbers and calculations, it is essential to talk about high-level benefits and limitations of both institutes.
Narsee Monjee Institute of Management Sciences (NMIMS), Mumbai
NMIMS is a flagship B-school situated in Vile Parle West, Mumbai. Termed as one of the most influential B-schools of modern India, it is the Alma mater of prominent business leaders like Amit Bansal (Partner, Financial Advisory Services @ Deloitte), Adil Vazifdar (Partner, Management Consulting @ KPMG India), and Shridhar Venkat (CEO @ The Akshaya Patra Foundation), among others.
Established in 1981, NMIMS has spend 40+ years in building a legacy of excellence around producing prominent leaders who leave an indelible mark in the dynamic corporate landscape, shaping and redefining paradigms.
Benefits of NMIMS
With it's shining legacy to illuminate the path forward, NMIMS has some unique benefits that only a few institutes can provide:
- Location: Located at the heart of the Business Capital of India, NMIMS ensures that its students are exposed to the best business practices. Additionally, it consumes from the ever-changing business landscape to mold leaders who are able to relate and excel in given situations.
- Alumni Support: NMIMS enjoys alumni presence in nearly all major corporations across the globe, transcending all possible delimiters. Be it in the Big 4s, or in the upcoming start-ups, students of NMIMS are leaving a mark at all possible levels.
- Brand Value: The value of a brand drives people to make psychological biases for or against particular entities. The same can be said about B-schools. The brand value wielded by NMIMS in the local and global markets is unmatched, leading to smoother integration of present students into big corporations post PGDM.
Limitations of NMIMS
With its stark benefits, NMIMS also comes with its unique set of challenges that needs to be carefully evaluated before it is considered as your B-school. Some prominent limitations are:
- Lack of proper accommodations: NMIMS suffers from not having decent accommodation facilities. Agreed, it does have a few hostels and associated PGs, but with rooms having double to quadruple occupancy facilities, pursuing a course as critical as PGDM becomes a hassle. The same is aggravated by the unavailability of a single occupancy option.
- Batch size: The core PGDM course of NMIMS Mumbai hosts an enormous batch of 600 people. Being carefully selected by the multi-stage selection process of NMIMS, each of these 600 students are carefully curated minds of India. Comparing to the general batch size of 150 in other flagship and eminent institutes, competition increases by a factor of 4.
- Cost: No discussion about NMIMS can possibly end without referring to the enormous cost that is incurred while studying at the institution. With estimates hovering around ₹40 lakhs for the 2 years, studying at NMIMS is no easy affair. With a majority of students funding their education through banks and NBFCs, the overhead costs that they experience while studying and beyond adds a bitter aftertaste.
Goa Institute of Management (GIM)
GIM is an eminent management school, nestled in the Northern end of Goa. It is one of the most influential business schools in India, and is the Alma mater of business leaders like Richa Yadav Dash and Sameer Mehta (MDs @ J.P. Morgan), Nikhil Pandey (Director @ PwC), and Chetan Prasad (Director @ Capgemini)
Established in 1993, GIM has had a legacy of 30+ years of creating responsible business leaders who have taken significant steps in making advancing their organizations, all the while preserving the values on which the organizations had been established.
Benefits of GIM
GIM, with it's legacy of over three decades, provides paradigmatic advantages over contemporary institutes:
- Brand Value: Goa Institute of Management is a recognized name in the industry. Though it lags behind leading schools like IIMs, XLRI, JBIMS, and NMIMS, GIM enjoys a favorable reputation among organizations for molding responsible, driven leaders, whose future-centric approach accelerates organizational transformation and growth.
- Alumni Support: Though not as vintage as its contemporaries, GIM enjoys a deep alumni network, sufficiently supported by its legacy of 30+ years. With alumni positioned in strategic roles in organizations across domains, GIM ensures that students are placed in reputable organizations at the summer and final placement drives.
- Cost: One of the most appealing aspects of GIM is its affordability. It provides high-quality education in under ₹30 lakhs, with realistic costs hovering around ₹27 lakhs. This is a far cry from other private institutes that has significantly higher costs for equally good education.
Limitations of GIM
GIM, just like every other institute, has its own share of limitations. The few limitations I have noticed are:
- Location: Goa, being comparatively remote in comparison to Mumbai, has limitations. Organizations may prefer to pick students from institutes in Mumbai rather than visiting Goa.
- Limited companies: The variety of organizations that recruit students from GIM are limited. Not that the list is any less stellar, but the choices are limited.
- Lower Average Package: In comparison to contemporaries, GIM has a lower average remuneration, hovering around ₹12 - ₹15 lakhs. However, the packages are audited in the institute, so there is limited scope for inflation of packages by institutes.
GIM vs NMIMS: The numerical aspect
For this calculation, we will calculate using the following constants:
- Job location: Mumbai
- Cost of accommodation: ₹35000
- Travel and Food: ₹25000
- Misc. Expenses: ₹10000
- Emergency Expenses: 10% of total expenses
Case-I: NMIMS
- Average package (Realistic): ₹18 lakhs
- Loan amount (Realistic): ₹40 lakhs
- Loan repayment tenure: 15 years
- Loan Interest rate: 8.5% p.a.
Using the Vidyalakshmi portal provided by the Government of India, the EMI ends up being around ₹39389 per month. This is rounded to ₹40000 for ease of calculation.
Putting these values in a spreadsheet shows the following:
Taking this as the expense, the monthly and annual expense turns out to be:
We will round the annual expenses to ₹1500000 for easier calculations.
Assuming the in-hand salary is 60% of CTC, the realistic salary needed to have a comfortable stay boils down to:
Though ₹25 lakhs is a possible compensation, one needs to be in the top 15 to 20 percent of students, i.e., within the top 120 students, which isn't an easy task to do, owing to logistic constraints of staying outside of campus, managing personal tasks and finances, while focusing on studies.
Alternatively, assuming the emergency cost is removed, the CTC calculation boils down to:
Case-II: GIM
- Average package (Realistic): ₹15 lakhs
- Loan amount (Realistic): ₹27 lakhs
- Loan repayment tenure: 15 years
- Loan Interest rate: 9.5% p.a.
Using the Vidyalakshmi portal provided by the Government of India, the EMI ends up being around ₹28194 per month. This is rounded to ₹28500 for ease of calculation.
Putting these values in a spreadsheet shows the following:
Taking this as the expense, the monthly and annual expense turns out to be:
We will round the annual expenses to ₹1320000 for easier calculations.
Assuming the in-hand salary is 60% of CTC, the realistic salary needed to have a comfortable stay boils down to:
Though ₹25 lakhs is a possible compensation, one needs to be in the top 15 to 20 percent of students, i.e., within the top 30 students. Again, to receive this level of compensation, a student needs to do exceptionally well. Though not easy, this task is simplified by the lack of significant logistical blockers.
Alternatively, assuming the emergency cost is removed, the CTC calculation boils down to:
Realistic take
After the numerical discussion, it is evident that from the RoI perspective, both colleges struggle. So why did I choose GIM over NMIMS? It was a risk mitigation plan, my favorite part of Ops Management!
I already work out of New Delhi, and will be moving out of my current employer on a sabbatical. Given the worst day strikes, and I am unplaced (That won't be the case... I am already putting time into YouTube and Blogging to ensure I have an alternate stream of income.) I can return to my employer, whose present CTC is more than enough to cover the EMI for the loan for GIM, but not for NMIMS.
This is possible because I have an established accommodation and travel facility in New Delhi. That negates the accommodation and travel costs. So, GIM makes much more sense to me.
Additionally, while charting my plans for both institutes, the process of selection and payment in NMIMS felt unprofessional and rushed, with multiple headers of the payable fees being ambiguous without an option of clarification. After all, it is my money, and it is in my right to know where the institute utilizes the money. On the contrary, GIM had clear information on where our money will be used. Their helpdesk was visibly well trained and responsive. Having worked in IT Consultancy for over 3.5 years has taught me that customer service can make the difference between retaining and losing clients. This time around, NMIMS lost me!
Final Words
Choosing an institute is a personal choice. It shouldn't be dictated on anyone, nor should someone follow the herd and select an institute which they would not be comfortable with. It is essential that a student conducts a thorough research on which institute they fir in perfectly.
Remember that the loan you have taken! That liability will knock on your door from the day you have graduated. Keeping the same in mind, take an informed decision. Remember that a Tier-1 institute, or flagship institute as I like to term them, doesn't guarantee a job, and even it it does, t might not suffice the requirements deemed by your liabilities.
Thank you reading this blog. I have plans to add more blogs on pressing cases and topics of the MBA journey. Please comment your thoughts and ideas.
Team PGDM signing out!
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