Not so long ago, an MBA was seen as a limited-edition degree for those aspiring to join select multinational companies. Today, it is difficult to imagine quality management without formal education in business management.

Still, while formal business education is necessary, it is not a sufficient condition for successful management. An MBA arms you with the essentials of management; but the art of using these effectively depends entirely on the skills acquired outside B-school. And it is these skills that differentiate the great from the good.

The first skill is realising the difference between the ideal and the real. Case studies still analyse successful businesses and not the lessons learnt from a dream that turned sour.

And in their early years, all managers struggle to come to terms with the gap between that ideal scenario they know so well and this monster called reality.

Another aspect B-schools do not teach is business vision. Vision is a dream you see with your eyes open. It takes into account the prevalent market conditions, future trends and the company's strengths and weaknesses to project goals for the company. A sound vision requires a strong sense of entrepreneurship, which is yet to be captured by education.

Entrepreneurial abilities depend strongly on two key issues -- gut feel and understanding the pulse of the market -- that remain largely unaddressed in formal business curricula. While gut feel is largely developed only after understanding the intricacies of business, it is facilitated by a qualitative understanding of the pulse of the market through an ear-to-the-ground approach.

Finally, leadership remains purely a theoretical outlook at B-schools. This is a trait that is developed in the real space and not through formal education. While my MBA helped me tackle business objectively, it was really experience that sharpened these other skills.

Nitin Kasliwal is Managing Director, S Kumars Nationwide Ltd. He graduated from the European University, Switzerland, in 1990.