Worried About The Opportunity Cost Of An MBA? Here's How My IIMB Interview Experience Helped Me Make A Decision.

A couple of weeks before COVID-19 lockdown restrictions were imposed in the country, I was sitting inside India Habitat Centre, New Delhi, waiting for the interview panel to call my turn. Although I was at the last step to secure admission into IIM Bangalore, I was still not quite inveigled about joining the program, if I got selected. I graduated from IIT Roorkee in 2017. Since then, I had been working with a tech-logistics startup as a software developer. It was a well-paid job and the peers were exceptional. But I had convinced myself for a long time, that this was temporary. Something didn't work right with coding and I was looking for an escape plan. So, I took the CAT Exam. P1 (Looking at my details): Do you know what is the average package of an IIM Bangalore graduate? Me: Yes. It is around 22-25 LPA. P1: Then why do you want to leave a job where you are already earning this much, and join IIMB? Me (I was expecting this question but not at the very start): In my current role as a software developer, I get to make decisions but my decisions are mostly technical decisions, which database to chose, for example. These decisions have an indirect impact on users. Whereas when a business owner makes a decision it directly impacts the users. That is the impact I want to see for my work. Also, I don't see myself fitting in my manager's shoes 5 years down the line. So, it feels like the right time to move on. P2: So, you don't want to be in your current role. Is that a good enough reason to go for an MBA. Me: I am aware of the other ways to switch roles, transitioning into a product manager role in my current organization, for example, but I might end up in the same situation after a couple of years. I am looking to explore, so an MBA feels like the right way. P1: You will be losing 2 years of salary with additional fees of the MBA program, and you might end up making lesser than what you are making today. Me (startled, as this was my only fear): The opportunity cost is huge. That is the only reason I was confused last year as well. But even after a year, I am in the same situation. So, I have made up my mind. P2: You are currently working in a startup. Startups are known for their high pays. Are you just going for an MBA because it is difficult for you to get a matching offer from an established organization? Me: I graduated from IIT Roorkee about 3 years ago and took up a job as a Software developer. But as the demand for Software developers is rising, the pay is rising as well. Fresh graduates are now paid a lot more. So, it would be easier for me to switch for higher pay now. But I am thinking long term here. P2: More and more companies are now removing the education qualification requirements, let alone MBA degree requirements, from their Job Descriptions. Don't you think the right way would be for you to apply to such companies? Me (As I had no other answer): "companies likh to deti hain, hire koi nhi krta" (They laugh. Pheww!) P3 (Who was sitting quietly all this while, starts asking about the industry I have worked in and the rest of the interview was around that only): You have worked in logistics, What do you feel is the biggest opportunity in logistics? Maybe the next big thing or a market opportunity according to you. Me (Not sure, I start pointing out the problems Logistics companies face) P3: You are talking about the operational inefficiencies here. Can you think of something better? Me (I think for a minute then I remember an idea I was exploring for a project): China has started using Augmented Reality using a mobile phone camera to calculate the dimensions of a box. This technology improves the quality check process for logistics companies manifold and leads to huge savings. Sometime in the future, I see that happening in India as well. (Then I explain how this tech works, similar to the depth effect in dual-camera phones these days.) P2: Why do logistics companies need to measure the box? Me: Sometimes customers under-report the dimensions of the boxes they ship. So, logistics companies have a quality check process in place. It helps them calculate the density and charge the customer properly. P2 (Turning track): If the measurement is such a big problem, why do logistic companies not use standard box sizes and do away with measurement completely. Whichever box the user selects, charge them according to that. Me: This can work with B2B customers, the big corporations, that already work with standard-sized boxes. The problem arises for Retail customers like you and me. People send anything and everything from bikes to sofa sets. So you cannot create standard sizes for these things. Also, the customer would want to pay for the exact dimensions of their shipment and not for the space left in the box. P3: Can you think of any way you can optimize this for the customer if the company only has a standard set of boxes. Me: In that situation, the company can share a box for shipments of two customers and split the bill among them. A business model can be created around this. P2 (Nodding to my answer and Looking at his watch): I think that will all from our side. Thank you Shubham. (I ask them a couple of questions regarding the admissions process and leave the room with a smile on my face.) Ironically, I was able to convince the interviewers that an MBA fits perfectly in my career plans when I was not fully convinced about the same. As I contemplated the interview experience, I realized that none of my answers were sugar-coated. This mentally prepared me to overlook the opportunity cost over my long term goals. A couple of months later, I got a PGP Admission offer from IIM Bangalore, and I decided to go ahead with it!! *** You May Also Consider Reading: My XLRI HRM Interview Experience | Nikhil "I Am Not Interested In Talking To This Candidate" - My Life-changing IIM-B Interview Experience My IIM Kozhikode Interview Experience | Dikshant Yadav