Our recent feature – Are advanced management degrees worth it? – considered the ROI of MBAs in a rapidly changing and increasingly complex business environment. Here, we continue the conversation by exploring the relevance and value of advanced degrees in STEM subjects and what advanced technical capability means for organisations competing in knowledge-intensive industries.
A changing capability landscape:
Balancing business, innovation and productivity advancement demands
Where expectations for business management qualifications have expanded considerably over time, a very different trend has emerged for advanced degrees in many of the technical disciplines.
“As MBAs grew in popularity, we also saw the start of a long-term decline in enrolment for postgraduate programs across engineering, geology, metallurgy and processing disciplines,” explains Nona Sichinava, a Partner for Gerard Daniels. “The declining pursuit of advanced degrees across a number of technical disciplines reflects far more than just changing education preferences – it speaks to a broader shift in how leadership demands in the mining sector have changed.”
While both technical capabilities and talent pipeline have contracted, technical challenges have only intensified – a shift driven by a wide range of factors, including:
- Growing demand, particularly for critical minerals (especially in the context of declining ore grades and the shortage of new discoveries)
- Increasing project complexity shifting to underground mining
- Evolving expectations around decarbonisation, sustainable mining and processing which call for technological innovation and improvements.
With more individuals moving into senior leadership roles with backgrounds in finance, accounting and commercial disciplines, mining organisations have understandably shifted more of their focus to operational performance, governance and shareholder value.
As commercial priorities have increasingly shaped leadership agendas, many organisations have also reduced internal investment in engineering capability and long-term R&D to cut costs, relying increasingly on external parties to drive innovation – but the outsourcing of such needs does little to encourage enrolments in technical disciplines.
“It used to be the case that natural resources companies derived value mainly from physical assets: this made sense when ore grades were high, ESG expectations were low or non-existent, commodity cycles were longer and when these processes relied on technical innovation that had largely occurred before the 1990s,” says Nona.
To navigate increasingly complex challenges, technology-driven industries must continue to value and develop specialist expertise – as for industries built equally on science and business, long-term competitiveness requires not only the right leaders, but a commitment to retain the specialist expertise that allows them to keep moving forward. These industries must also avoid short-termism, which limits the attraction, development and retention of technical professionals who often choose to start their own consulting business or exit the mining industry altogether.
“Mining companies are ultimately businesses, but focusing too narrowly on commercial leadership capability can diminish the specialist knowledge that underpins sustainable innovation,” Nona says. “This isn’t an argument against commercial leadership, but a reminder of the need to position both capabilities as complementary, not as competing priorities; and to balance pressure for short-term returns with a long-term technical talent and leadership vision.”
To address very real technical challenges, professionals need organisations that are willing to invest in research, to encourage collaboration and prioritise long-term technical investment alongside ensuring the commercial viability of a business. “Of particular value, are specialists who can translate deep technical expertise into commercial outcomes by collaborating across disciplines, influencing decision-makers, communicating complex ideas to diverse stakeholders and translating research into practical outcomes,” says Nona.
Where do advanced technical degrees create value?
For leaders responsible for building future capability, the challenge extends beyond attracting and developing technical talent. Succession planning requires an approach that not only builds the talent pipeline but also ensures deep technical expertise continues to shape strategy, inform decision-making and drive innovation.
“Developing senior technical expertise will become increasingly important as artificial intelligence becomes more deeply embedded across all facets of mining businesses,” says Nona. “It’s also important to remember that while AI will undoubtedly accelerate data analysis, modelling and decision support, it will remain a tool – not a substitute for personal and scientific curiosity, imagination and discovery.”
Defining value differently
Unlike management disciplines, where much of the body of knowledge is already established, technical disciplines remain fundamentally exploratory – a dynamic that demands value to be considered differently.
“Scientific research isn’t just about applying existing knowledge, it’s about seeking and creating new knowledge, so when you invest in technical disciplines you don’t always know what the return on investment will be,” says Nona. “This dynamic can make the business case for building senior technical capability morechallenging, as the value of advanced technical research isn’t always immediate or easily measured: some research may never result in a commercial application, while other discoveries have the potential to reshape entire industries.”
While it may look different, value does not come into question when Nona reflects on the role and relevance of advanced technical degrees.
“Research may lack certainty in terms of immediate ROI, but there is still enormous potential for discovery and innovation in areas like geology, metallurgical processing and geotechnical engineering where new knowledge is critical to improving resource recovery, sustainability, safety and operational performance,” says Nona. “As organisations grapple with increasingly complex technical challenges, specialists capable of solving highly specific geological, processing or engineering problems are likely to become increasingly valuable.”
Perhaps the question is no longer whether advanced technical degrees still deliver value, but whether organisations can afford not to invest in the capability they create. As technical challenges become more complex and fewer mining professionals choose to continue to finesse their technical capabilities, competitive advantage will increasingly belong to organisations that combine commercial leadership with deep technical capability – not those that choose between them.
To discuss your specialist leadership needs, connect with Nona or reach out to your local Gerard Daniels team.
