ISB Essay analysis 2013-14

The ISB application for 2013-14 (Class of 2015) is now live.

Most people ask me what is a good GMAT score to get through to ISB. I tell them ANY score. The range at ISB is from 640 to 800. And among those rejected the range is ZERO to 800. Huh ? Confused eh?

To put it simply, it doesn't matter much what score you get. Its only a hygiene parameter. Unlike a CAT score which IIMs use as cut-off.

The parameters that has the highest weightage - which is the difference between a Interview Call and  a Regret letter - is the Essays.

This year's Essay topics are as below:

Essay 1. Attitude, skills and knowledge differentiate people. Elaborate with two examples on how you would differentiate yourself. (300 words max)

This essay measures your sense of maturity and suitability to do an MBA. This is the essay where you need to convince the Adcom how you are different and what value you bring to the table. 

Points of differentiation could be 

• Knowledge: Uniqueness of your Work experience (not unique projects at work) which has given you lot of exposure to situations that other candidates might not have. This exposure has given you a different perspective that can add value to discussions with peers in/out of the classroom. Example needs to elaborate on what your typical day is (meet customers of different backgrounds etc) and how the situations you face gives you different perspective (varied customers -> varied needs -> different sense of values)
• Attitude: Demonstration of leadership ability even under adverse situations. Need to elaborate with an example from recent workplace experience where you might have dragged your team out of the mud in a project. Start with context (what position you hold, where it is on the hierarchy) then elaborate on the problem (Delayed project, major Faux pass etc), your diagnostic on the issues (lack of role clarity within the team, lack of problem understanding) and how you resolved/tackled/acted as enabler for each issue.
• Skills: Skills led differentiation needs to be backed up with an example where you demonstrated relatively rare skills to resolve issues at work/personal life (e.g sense of detailing -> broke a customer requirement into 7 buckets at the lowest possible denominator (at end user level) -> envisaged entire approach in absolute detail and resolution to each road bump you might encounter etc)

Pick any two of the above and give examples. Balance crispiness & detailing. Additional pointers in the below link

http://roadtoisb.blogspot.in/2009/01/how-to-play-diversity-card.html

2. How does the ISB PGP tie-in with your career goals? (300 words max)

This essay evaluates an individual's clarity to know if he/she understands why they are doing an MBA and how it fits into the big picture. In this essay you need to tell them where you are in your career (e.g. Product developer) and what is the ultimate long term goal (Global Product manager). 

• What skills does your ultimate long term goal need? 
• Why do you need MBA for that? Can't progression in your existing take you there? 
• What skills/knowledge you lack that is likely to hamper your progression (e.g. lack of theoretical grounding of Marketing, Economics & Finance which is required to perform the  role of a Global Product manager)? How will MBA help you bridge that gap? 
• What career path will you take post MBA (mid-term goal) and it would act as a stepping stone to your ultimate goal? 
• Why ISB - reasons need to such that you can find only in ISB. How do I check? If in your essay you replace ISB with XYZ college and it still makes sense then the reasons are not good enough. 

3. Pick the most significant achievement (professional or personal) you have had and elaborate on the key learning you took away from it. (300 words max)

`Pick the one that stretched you as an individual both personally and professionally. Needs to be from recent times (last 2-3 years). Set context (your current profile, hierarchy, calendar year) then the issue faced, your diagnostics and then execution details, pitfalls if any, resolution of those pitfalls and finally what learning you picked up from the whole experience that you'll apply in future endeavors that'll keep you on the path of success. Needs to be as specific as possible.

4. (optional) Please provide additional information, if any, that will significantly affect the consideration of your application to the ISB. (300 words max)

Use this to answer all shortfalls in your application. Some typical shortfalls are:

• Poor GMAT/education grades
• Education or professional time gaps
• Frequent changes in jobs

In addition, you need to follow precautions when writing your essays. You'll find it in the link below:

http://roadtoisb.blogspot.in/2009/01/certain-precautions-while-writing.html

ISB : Is it Executive MBA?

One of the biggest misunderstanding that quite a number of people have is that ISB is an exec-MBA. This stems from mainly its 1-year model which is similar to Exec-MBAs. But that is where the similarity ends !!

MBA education has several models - 

• 1 year

• 15-18 months

• 2 years. 

B-schools in USA/India have majorly 2 year MBA model while Europe & a few major Asian B-Schools has 1 year or 15 months model. Hence a 1 year course in India is automatically linked and assumed to be a Exec-MBA course.

So whats different in ISB vs. Exec MBA courses?

• ISB is full-time while Exec MBA is usually part-time

• Classroom hours are far higher

• Method and Content will be very different as the needs of a Full-time student and part-time Exec are very different

So is the Classroom hours in ISB half of a 2 year MBA ?

• Classroom hours in a typical two-year full time MBA worldwide – 680 hrs

• Classroom hours in a typical two-year programme at IIMs – 950 hrs

• Classroom hours in one-year full time MBA at ISB – 800 hrs

800 Hours in a year vs. 950 in 2 years - Intense !! 

So the difference of 150 ? Does it mean you learn less in a 1 year program? NO. The Profs merely skips the bare basics for a class with work experience. He/She will not delve too deep into theory and focus instead on practical knowledge useful for a manager. For e.g while the Market Research course in the two-year programme might elaborate on how to design a questionnaire, the one-year course would take you through processes to analyse the results from such a study.

But why skip the bare basics? It is because ISB like any other 1 year programme B-School admits only people who have atleast 2-3 years of work ex while IIMs is largely  a 0-1 year work ex school. Thanks to the prior work experience, the students at ISB of the one-year course can relate class discussions to their own experiences in corporate life. This helps them question, debate and finally absorb new management concepts in a thorough manner.

So Capisce ?

Return on Investment

People often ask themselves - more so in ISB than other B-schools in India -

• Whats the RoI of my MBA education ?
• Was it worth it?

There are several ways in which this can be computed or derived. In this post I am only exploring some of the ways in which you can look at the same. 

I am ignoring emotive payouts of being an MBA like higher standard of living, seemingly better opportunities. social standing etc because these are highly contextual in nature. For some these payoffs are far higher than monetary payoffs and hence their RoI is taken care of. Have also ignored tax benefits and Loan moratorium. It'll only improve the RoI.

What you need:

• PRE = Pre MBA Annual salary (Cash component -> Take home + Annual Bonus etc)
• DP = Downpayment for MBA loan
• EMI = EMI being paid for availing MBA loan
• POST = Post MBA 
• Annual salary (Cash component -> Take home + Annual Bonus etc)

** Not including on-campus expenses as we would be incurring similar expenses if we were not doing an MBA. However you can include it by adding to your DP. Also have not taken a post Loan payoff scenario which is 5 or 7 years after MBA while you'll be generating returns on it till the day you retire.

Assuming some values for demonstration purpose

• PRE = 4.1 Lacs (30K p.m + 50K annual bonus)
• DP = 2.0 Lacs
• EMI = 3.6 Lacs (30K p.m)
• POST = 11.8 Lacs (90K p.m + 1 Lac annual bonus)

1) Perspective A: Downpayment as Investment

RoI =  (POST - EMI - PRE) * 100 / DP

       = (11.8 - 3.6 - 4.1) * 100 / 2 

       = 210 %

** Above RoI tells you how quickly your incremental salary (vs. your old salary, after paying EMI) post MBA will payoff your Downpayment

2) Perspective B: Downpayment + Annual EMI as investment

RoI = (POST - PRE) * 100 / (DP + EMI)

       = (11.8 - 4.1) * 100 / (2 + 3.6)

       =  136%

** Above RoI tells you how quickly your incremental salary (vs. your old salary) post MBA will payoff your EMI as well as Downpayment

3) Perspective C: Total Loan payout as investment

RoI = (POST - PRE) * 100 / (DP + (EMI*Loan Tenure))

       = (11.8 - 4.1) * 100 / (2.0 + (3.6*7))

       = 7.6 * 100 / 27.2

       = 28%

** Above RoI tells you how quickly your incremental salary (vs. your old salary) post MBA will payoff your entire Loan. Doesn't factor in Salary increments over the 7 years. You can assume the same but make sure you make similar adjustment in your PRE MBA salary as well.

If you want to compare RoI of a 1 year MBA vs. 2 year MBA then you have to factor in the 1 'addtl' year that you'll be working and earning in a 1 yr MBA scenario.

The Big Question: ISB vs. IIM

I get a lot of e-mails on where should I do my MBA - at IIM or ISB ? So I thought let me publish a recent Q&A between me and a MBA prospect. Please note that these are opinions and just my own.


Q. I have work experience in XYZ domain. After MBA i would like to join consulting. How tough would it be to change my domain ? 


A: To switch one's domain takes a lot - be it IIM or ISB. It is because you come with a 'baggage' i.e. your learning and mindset would be a bit tuned to your industry and unlearning is never a easy task. However to change to consulting is 'relatively' the easiest of all switches.


Q. I am looking for IIMs or ISB because i think brand name is a long term asset. Which one is better ISB or IIM in following aspects?

                a. Career change from IT to fin/consulting
                b. 1yr v/s 2yr MBA
                c. ROI (10 lakhs and 2 year or 20 lakhs and 1 yr)
                d. Placement

A: IIMs vs. ISBs  (Only IIM A/B/C are comparable to ISB. The others are no match)

              a. To switch to Fin, you'll hv better chances in IIMs because they have an internship model which gives you that chance but remember than Fin companies coming to IIM campus look for absolute freshers whereas you would have abt 3 yrs work ex by the time you join which might work against you. However in ISB you'll b competing with CAs plus lot of people from hardcore Fin background. So if you are determined for Fin roles then try for IIMs.

To change to consulting ISB is far better because the who's who of the consulting world come to ISB. The chairman of ISB board Rajat Gupta is head of McKinsey. Also in the number of recruitments per consulting company is higher at ISB than IIMs.

           b. 1 yr vs. 2 yr

Both have their pluses and minuses. Depends on what your objective function is. If you wanna get back to working very soon 1 yr works better. It also works better if you have prior work-ex. The advantage 2 yr gives you is the internship which can help you in switching sectors. 1 yr is also much more stressful than 2 yr MBA programs. Peer learning is better at ISB since people with work ex are better able to relate to what is being taught than at the IIMs. Plus the quality of faculty at ISB is world class since Profs from Kellog, London Business School, Wharton come and teach here.

         c. 1 yr programs have better RoI as you will not be earning only for a year. Total expenses at ISB will come to around 20Lakhs. The average salary for a guy with abt 3 yr work ex is abt 13 Lacs. So net you are spending just 7 lakhs over 2 years. On the other hand, just the tuition expenses at IIM-A/B/C is itself 12.5 lakhs. Add other expenses and do the math. You'll see ISB is better RoI. 

       d. Placements are difficult to compare but median (note: not average) salaries are always better at ISB since we have lateral placements. IIMs have lot of entry-level roles. However competition is more intense at ISB since larger pool of students (560 vs. 400 at each IIMs).

Q: How can a student from IT background get in Investment banking or capital market related jobs as analyst in ISB?

A: As explained before this is much more tougher at ISB. You need to have good academics. Do you Finance coursework well. Prepare well for Finance interviews. Be active in the Finance Club.

Q. What role does International certification like FRM CFA or CAIA play in placement?


A:  They do help when it comes to good finance roles. Also signals your seriousness abt Fin careers. most helpful if you do not hv finance work-ex.



Q: 20 lakhs is big amount. Taking example of a student with low work ex and average job (10lakhs package),  How much time will it take to pay loan from bank?


A: Payback varies from person to person. Term of loans offered by banks is 7 years and ISB manages to get good rates with bankers on education loans.



Q. Many people say ISB ranking is not as good as it appears. They say ranking can be 12 in FT but the value is still less compared to IIMs. What is your opinion?


A: FT rankings are one of the most respected rankings in the world. So ISB's 12th rank is definitely good. How good? that is something nobody can say for sure. Only time will tell but the ranking is well deserved. In terms of value in India we are on par if not better than IIM - A/B/C. Internationally ISB enjoys much better brand value than any of the IIMs. Do remember that IIMs are not as strong a brand globally as one percieves. Among Indians education institutions, IIT is definitely a very strong brand.

Q: What kind of profile AdCom of ISB expect from aspirants ? Do they looks for entrepreneurship or any other roles? Please answer in details.

A: Three aspects to anybody's candidature: Academics, Extra-curriculars and Work-ex. You need to be stellar in atleast two of those to make the cut.

MBA Specializations !

FINANCE

Broadly encompassing corporate finance and the capital markets, finance provides insight into financial policies and investor behavior, examines how policies, individuals, and organizations interact within market environments, and applies financial instruments and quantitative methods to address problems and opportunities in finance. MBA programs typically teach everything from international finance to market microstructure, corporate financial management and investments. Students who focus on corporate financial management possess the skills to accomplish both rudimentary financial analysis such as financial forecasting, budgeting, and the analysis of capital investment projects, and higher level financial decisions, such as capital structure decisions, dividend policy decisions, mergers and acquisitions, and risk management. Students who focus on  investment track are trained to analyze both individual securities and to manage portfolios.

Some of the Job Titles - Financial Analysis Manager, Treasury Analyst, Finance Consultant Associate, Cost Analyst, Senior Financial Analyst and Project Manager.

MARKETING

Marketing is primarily concerned with satisfying customer needs and wants at a profit. A marketing strategy typically starts with target customers and a unique selling proposition. These decisions help guide the marketing mix, which covers the product, distribution, promotion, and price. Various marketing issues are covered in elective courses that span overall strategy development, market research, new product development, industrial marketing, international marketing, and electronic commerce.

There are four areas in marketing: industrial marketing, consumer marketing, marketing research, and consulting. Students who focus on the marketing option in the industrial (or business-to-business) marketing track have the skills to conduct market analysis of customers, competitors, and markets characterized by business to business exchanges. In the same vein, those pursuing the consumer marketing track have such skills for business to end consumer markets. Students who follow the marketing research track are trained to analyze markets using modern research methods for addressing key management decisions. The marketing consulting track is appropriate for those students seeking careers in consulting that have a marketing focus. 

STRATEGIC MANAGEMENT

The central goal of strategic management is to understand how organizations might achieve advantage relative to competitors.  It is of interest to individuals who act as integrators – that is, they might make decisions that cut across the functional and product boundaries of a firm.  Such decisions include:

• What type of advantage (e.g., low cost or differentiation) does the firm aim to deliver?
  
• What is the scope (geographic, market) over which the advantage is targeted?
  
• What are the activities throughout the value chain that deliver the intended advantage, and how do they interact?
  
• What range of businesses is appropriate within a single firm and how should they be organized?
  

One type aspires to jump immediately into a general manager role with an established company (e.g., product manager, business unit manager, country manager, member of top management team), as a consultant, or as part of an entrepreneurial team. 

A second type of student might plan upon graduation to take a functional position (e.g., finance, marketing, accounting, human resources, MIS, operations) but will likely report to a manager who has general management responsibilities.  These individuals may find it helpful in their careers to better understand the issues to which their superiors are concerned.  These students may also hope to eventually aspire to general management responsibilities.  For this type of student, combining the strategic management option with another functional option is a lethal combination. Strategy equips students with the framework, concepts, and tools required to think strategically about the total enterprise. This entails analyzing the firm's industry and position, as well as crafting strategies that will create future economic value. The course examines industry structure, sources of competitive advantage, the role of functional strategies in guiding and sustaining this advantage, diversification, and internal corporate venturing.

ENTREPRENEURSHIP

The crucial aspect under entrepreneurship is the process of identifying, valuing and capturing opportunity. These activities, crucial in any organization, require using business disciplines in a highly integrative way. The second is an emphasis on individual initiative in the context of uncertainty and tight resources. While these concepts are distinguishing features of entrepreneurial opportunity, virtually all business students will encounter these challenges in some form, whether as entrepreneurs, consultants, financiers or managers of firms. 

CONSULTING

The skills required of a consultant mirror those required of high-level organizational leaders. Building on a the foundation in the functional areas of business, our consulting focus advances these critical abilities: a strategic perspective on all of an organization's functional areas and the interplay among them; an understanding of how an organization interacts within its competitive environment; the creation and clear communication of logical arguments, and the combination of analysis and synthesis that brings order to unstructured environments.

OTHERS

1. Accounting

2. Management information system

3. Global Supply Chain

4. Manufacturing and Technology management

5. Social Enterprise

6.  Leadership / Organizational Behaviour / HR

7. Management Communication

8. Decision Sciences / Quantitative Analysis

How to play the 'Diversity' card !

Every person is unique in his own special way. Through the essays the Adcom wants to know how your uniqueness will contribute to the campus. Most people applying to the school are academically qualified to finish the program successfully. So saying that you are a hard worker with excellent acads will not make you different and special. To cut through your competitions you must possess a very clear and sharp image that is readily noticed, understood and valued. 

You could pick three reasons from the following: 
• Your range of work demands you to deal with the lowest as well as highest hierarchy in your profession. 
• Depth of your understanding in a particular industry e.g. there may not be many candidates working in the aviation industry so your vast experience in this field may add to your abilities.
• Your unique profession e.g. commercial photographer.
• Being fluent speaker of three to four languages.
• Coming from a very different cultural background e.g. north east India has very different culture and many Indians are not exposed to / aware of their culture. 
• Your sly sense of humour.( support this with example)
• You could be in the IT industry and on weekends be part of a band playing at the local cafeteria.
• You could be an engineer having won awards in an adventurous reality show.
• Being a finance person you could be a part of the theatre group in your city or a biker.
• Having worked with the locals of some remote place gives you a different perspective of looking at life.
• You could have worked as a social worker in the slums/lepers colony, blood camps, rehabilitation centers etc. where you will come across a much diversified group. Interacting with them will enhance your diversity.
• You could possess unusual outside interests like publishing your own book of poetries/ short stories, reading about astronomy, spirituality etc.
• You could contribute to your company’s community service by marketing handicrafts of the artisans from nearby villages.
• You could be a regional / national level player.
• You could have worked in places all over the globe which provides you with an enriching experience and knowledge about a variety of population.
• You could be extremely carrier oriented but at the same time you always make it a point to spend some quality time with your family/children/old parents to bring balance in life.
• Coming from a family of freedom fighters you could be trained in creative discipline which will equip you to find unexpected ways to solve problems rather than being limited to obvious answers.

Strengths and weakness

STRENGTHS:

Mention at the most 3 prominent strengths. 
• Strengths professional could be: efficient time management / people skills / leadership skills / communication / marketing skills, high resilience skills / eye for detail. Professional strengths could be: Quick learner, Technically talented in your field of excellence, talented business mindedness etc.., 
• Strengths personally could be high ethical values / strong willpower / human aspect to your personality / down to earth attitude/ positive approach / etc… 

WEAKNESS:

Mention atleast 2 weaknesses.
Although the essay asks for weaknesses, one should mention them as areas of improvement. 
Suggested not to mention weaknesses that would influence the applicants admit chances negatively.
Weaknesses should be strictly relevant to the professional environment.
Mention whether you have been working on your weaknesses.
• If you are working hard and you are not able to market your skill sets that is a high risk weakness, best avoided/ people management etc…. should not be preferably highlighted…
• At a personal level, you could mention – Management skills like time management/ (not being able to balance time between your professional and personal life wherein your personal life suffers due to busy schedules) / Inability to refuse or say ‘NO’ / Inability to multi task (for a person with relatively less experience say – <4 yrs) / eye for detail / temperament etc…
Mention clear pointers, instances or experiences that molded you into the person that you are today.