There are note worthy examples of individuals who succeed in business without formal training in business, but if you dig into the stories you always find they have a business education. They might have gotten it by starting in a “family business” at 10 years old, they might have years of experience in their industry where they built up knowledge through a series of escalating responsibilities, or they might have come into business through an affiliated profession like law where they had to master finance, accounting, and tax issues as part of studying regulatory law. These stories also regularly feature some bad road rash from a fall along the way. An education was had, but it hurt.

People can go a long way in business on charm and motivation. There is a component of success in organizations, whether government, social service, non-profit, religious, or business, that is based on social and communication skills, and many people get promoted into good jobs based on these skills. But at some point along the success path, people get into positions that require decisions that matter. Whether entrepreneur or corporate manager, there are moments of truth strewn with land mines that will go off with one wrong move. These are good times to know what you are doing.

I know a CEO who is now retired from a firm that in its time was in the major leagues of corporate America. When he became the President of the firm, he did something that surprised his board, his employees, and to some degree himself: He enrolled in the David Eccles School Executive MBA Program. In talking to him about going back to school after he had “made it” by anyone’s standards, he said something very interesting: “I had come up on the marketing side of the business, and I knew the business as well as anyone in the industry. But once I started going to Board meetings, I realized I really did not understand the firm’s financials. They were complicated, and while I could see how we were doing, I really did not understand what they were telling everyone else in the room. What the EMBA gave me was a set of tools to understand every facet of the business. As a result of doing the EMBA, I was able to participate with the Board in setting direction for the business and make contributions beyond what I was previously making, which gave the Board the confidence to ultimately make me CEO. I needed to grow as President of the firm, and the EMBA helped me grow rapidly to the point I was ready to become the CEO when the opportunity became available.”

One of the recurring themes in classic Greek tragedy is the heroic figure destroyed by hubris, the Greek word for arrogance associated with pride. The force that takes down the heroic figure is typically fate, often embodied by the intervention of one of the mythic gods who has taken offense. Hubris is a dangerous trait in entrepreneurs and corporate managers, because at some point fate comes calling. Those who are successful as entrepreneurs and corporate leaders are among the most humble individuals I meet, and the CEO above is a great example. He had the humility to go back to school and pick up the key knowledge he found he was lacking rather than try to fake his way through or learn “from experience,” which he realized was dangerous for the firm and his career. Humble leaders also get the most from their people because they understand their success is the result of the efforts of many individuals who are following their lead. Finally, humble leaders help those in their organization get the knowledge they need to succeed in the opportunities that will define their careers. The individual who came back to get his EMBA has sent many others in his organization back to school in programs all over the nation, many of them already in senior positions. Most of those he encouraged became presidents and CEOs, and they are leaders who have the tool set to make vital strategic decisions.

There is a phrase I have heard many times, and I think it summarizes the point here well: Education is experience you do not pay for. Yes, all the lessons of business were once learned the hard way, and businesses failed and careers were ruined in the process. Much faculty research in business focuses on developing best practices and cataloging mistakes. This research is the basis for what is taught, and the mistakes are a context for learning why strategic decisions need to be approached in a certain way. There is wisdom that comes with career experience that is tough to teach, but we know a lot about the landmines that destroy businesses and careers that we can teach. Experience you do not need to pay for.

It is possible to make a fortune in Vegas in a day by making all the right bets at the roulette wheel, craps table, or any of a dozen different bets. The same is true in business: it is possible to make all the right bets over a career that lasts 40 or more years. Last I checked, the casinos in Vegas are not owned by individuals who raised their capital at the gaming tables.

Later.