MIT Reports to the President 1995-96

SLOAN SCHOOL OF MANAGEMENT

This year marks the completion of the third year of our five-year plan for preeminence. We continue to revise and innovate in the areas of curriculum, facilities, productivity, research, development, and public awareness.

HIGHLIGHTS

Glen L. Urban

ADMINISTRATION AND SERVICES

FACULTY CHANGES

Promotions
Full professor: Dimitris Bertsimas, Nancy Rose, Eleanor Westney

Associate professor: Erik Brynjolfsson

New Faculty
John Core, Accounting; Elizabeth Eccher, Accounting; Denis Gromb, Finance; Sandy Jap, Marketing; Scott Stern, Management of Technology and Innovation; Nader Tavassoli, Marketing

Professorships
Erik Brynjolfsson, Douglas Drane Career Development Associate Professor of Management

Steven Graves, Abraham Siegel Professor of Management

Donald Lessard, Epoch Foundation Professor of Management

Paul Healy, Nanyang Technical University Professor of Management

Don May, Nanyang Technical University Career Development Assistant Professor of Management

Tenure

Rebecca Henderson

Visiting Faculty

Edward Bowman, Visiting Professor of Management, Wharton School, University of Pennsylvania

Anirudh Dhebar, Visiting Professor of Marketing, Harvard Graduate School of Business

Alan Marcus, Visiting Professor of Finance, Boston College

Philip Parker, Visiting Professor of Marketing, INSEAD, France

Jay Ritter, Visiting Professor of Finance, University of Illinois

Michael Tushman, Visiting Professor of Management, Columbia University

James Hines, Visiting Associate Professor

Janice Klein, Visiting Associate Professor

Kevin Rock, Visiting Associate Professor

G. Peter Wilson, Visiting Associate Professor

On Sabbatical

Dimitris Bertsimas, John Hauser, Robert McKersie, Edward Roberts, David Scharfstein

Returning from Sabbatical

Deborah Ancona, Michael Cusumano, Lawrence Wein, Paul Healy

Professional/Personal Leave

Julio Rotemberg

Terminations

Professors Anantaram Balakrishnan, Ella Edmondson Bell, S. Lael Brainard, John Core, Paul Resnick, Karl Ulrich

ADMINISTRATION CHANGES

Donna Behmer promoted to Senior Associate Dean, Finance and Administration

Anne Drazen promoted to Assistant Dean and Chief Technology Officer

Hillary DeBaun, formerly associate director of the Undergraduate Program, left Sloan to become Team Leader for MIT Student Services Center

David Weber, formerly director of Educational Services, left Sloan to join the MIT Reengineering Team

Lucinda Hill, formerly deputy director of the Master's Program, now director of Educational Services

Robert Halperin, formerly executive director of the Center for Coordination Science, now director of Executive Education

NEW HIRES

Ellen Corwin, systems analyst, Sloan Technology Center

Patrice Diaz-Migoyo, systems analyst, Educational Services

Susan Funke, manager, Corporate Resource Center

Karen Harnett Gribbell, assistant director, Master's Program

Anita Killian, associate director, Resource Development

Melissa LaBarge, project manager, Lemelson-MIT Prize Program

Paul Michelman, director of publications, Office of Communication

Roanne Neuwirth, assistant director, 21st Century Initiative

Laurie Pass, circulation manager, Sloan Management Review

Susan Petrie, business manager, Sloan Management Review

Scott Street, senior project manager, Sloan Technology Center

Marjorie Tyler

ADMISSIONS OFFICE

Each year the Admissions Office aims to find and recruit the best, most innovative leaders of the future from across the U.S. and around the world. The complex challenges of the next generation will demand a wide variety of skills; as a result, we recruit the most diverse class possible.

HIGHLIGHTS

NEW INITIATIVES

Continue to emphasize recruitment of women and under represented minorities

Reengineer admissions procedures to more effectively and efficiently meet growing demand

Increase presence on World Wide Web

Rod Garcia

Meg Manderson

ALUMNI RELATIONS

To enhance the goodwill of Sloan alumni by enabling them to stay connected to each other, the School, and ongoing opportunities for professional and personal development.

HIGHLIGHTS

NEW INITIATIVES

Development of a new Alumni Advisory Board

Continued development of new fee-based services and revenue generation activities, including a memorabilia business and on-line alumni courses

Enhancement of web-based programs and services

Carmon Cunningham

CAREER DEVELOPMENT OFFICE

HIGHLIGHTS

NEW RECRUITING EVENTS

High Tech Career Fair (Sloan Resource Center): 10 companies and 70 students

Banking Day (New York, NY): 15 banks and 100 students

CONTINUING RECRUITING EVENTS

Career Development Seminars

Industry-specific Career Options Seminars

CLASS OF 96 PLACEMENT

Average Number of Interviews: 12

Average Number of Offers: 3.4

Median Total Compensation: $102,500

Median Starting Base Salary: $78,000

Median Starting Base Salary - Consulting: $85,000

Median Starting Base Salary - Manufacturing: $71,200

TOP INDUSTRIES SELECTED

Consulting: 43%

Manufacturing: 31%

Investment Banking: 17%

TOP JOB FUNCTIONS SELECTED

Consulting: 43%

Operations/Project Management: 17%

Finance: 26%

TOP HIRING FIRMS

McKinsey: 18

Booz-Allen & Hamilton: 9

Boston Consulting Group: 8

Intel: 8

NEW INITIATIVES

Implement fall recruiting for the first time

Work with Career Tracks and student clubs on the development of CDO services while managing continued growth in the size of the student body

Continue outreach to new companies

Organize additional industry-focused career fairs

Ilse Evans

CLIENT PARTNERSHIPS AND RESOURCE DEVELOPMENT

HIGHLIGHTS

NEW INITIATIVES

Increase the marketing of the School's resources and leveraging off the Institute

Strengthen existing partnerships with the Graduate Alumni/ae Program, undergraduate reunion giving, and regional staff

Continue to develop closer working relationships with corporate development and Industrial Liaison offices

Increase Sloan's interaction with the foundation relations office around joint strategies. We believe there is growing potential support from foundations for business education that has not yet been tapped.

Ronald Thomann

EDUCATIONAL SERVICES

Educational Services manages the infrastructure of the academic process, providing operational support for students and faculty, producing materials for program management and classroom teaching, managing information systems for student enrollment and registration, and facilitating communication between students and faculty.

HIGHLIGHTS

NEW INITIATIVES

As MIT moves to electronic course registration, the Educational Services team will work with the Registrar to guarantee that systems for both work well in tandem.

Support for Executive Education will open new fronts as distance learning is explored.

Focus will remain on streamlining student services, as the student population again increases; goal is to find new ways to provide even higher quality service to a larger client base.

Cindy Hill

LEMELSON-MIT PRIZE PROGRAM

The Lemelson-MIT Prize Program raises awareness of and encourages young people to pursue careers in invention, innovation, and entrepreneurship through the presentation of the annual Lemelson-MIT Prizes and a comprehensive public education program.

HIGHLIGHTS

Annemarie Amparo

OFFICE OF COMMUNICATION

The goal of Sloan's Office of Communication is to clarify, coordinate, and broadcast key messages that demonstrate the preeminence of the School. Innovating the form, content, and processes of communication for stronger impact, better coordination, and greater cost effectiveness, the Office made progress on a number of fronts last year:

HIGHLIGHTS/NEW INITIATIVES

David Lampe

SLOAN MANAGEMENT REVIEW

Sloan Management Review, the business school's quarterly peer-reviewed journal, has had a successful year:

HIGHLIGHTS

Sarah Cliffe

SLOAN TECHNOLOGY CENTER

To create a partnership of faculty, staff, students and corporations dedicated to the support of a changing infrastructure, the teaching of the best information technology practices; and innovating, planning, analyzing, implementing, and promoting lifelong technology learning within our electronic community.

HIGHLIGHTS

NEW INITIATIVES

All Master's Program/MBA students are now required to have a personal computer. Students with laptops can plug into classrooms, lounges, breakout rooms and common areas around Sloan.

Increasing Sloan's presence in videoconferencing through broadcasts of campus speakers, increased classroom use, alumni/ae meetings, and lunches with faculty members.

Increased usage of technology in management education (TIME) with web-based groupware and administrative systems.

Development of custom classes delivered as a combination of live Web-based material, discussions, tapes, CDs and videoconferences.

Anne Drazen

EDUCATIONAL PROGRAMS

UNDERGRADUATE PROGRAM

44 seniors majoring in management science graduated, with the options:

Finance: 19

Information Technologies: 13

Marketing Research: 7

Operations Research: 4

Behavioral Science: 1

Undergraduate Program graduates also receiving bachelor and master of engineering degrees from:

Department of Electrical Engineering and Computer Science: 11

Department of Chemical Engineering: 2

Economics: 2

Mathematics: 1

Graduates simultaneously awarded SB degrees in Management Science and:

Master of Engineering degrees in Electrical Engineering and Computer Science: 6

Bachelor's degree in Electrical Science and Engineering: 3

Bachelor's degree in Electrical Engineering and Computer Science: 2

Bachelor's degree in Chemical Engineering: 2

Bachelor's degree in Economics: 2

Bachelor's degree in Mathematics with Computer Science: 1

Spring 1996 enrollment: 139

Total students with declared options: 115

Finance: 49

Information Technologies: 41

Marketing Research: 17

Operations Research: 5

Behavioral Science: 2

System Dynamics: 1

Students with management science as their second SB department: 39

Undergraduate enrollments in management subjects: 784 (98 FTEs)

Hillary De Baun

LEADERS FOR MANUFACTURING PROGRAM

STATISTICS

1995 applications: 408 (55 admitted, 48 enrolled)

Average age: 28

Average work experience: 4.2 years

Women: 6

Minorities: 4

Partner-sponsored students: 15

Total 1995-96 enrollment: 88

1995-96 graduates: 43

Employed in U.S. manufacturing companies: 88%

Number of job offers (unsponsored students): 5.5

EVENTS

Alumni/ae Workshop, Spring 1996, San Francisco

Industry Leaders executive education course (pilot program), November 1995

LEADERSHIP

Learning Tools Committee has developed 12 cases which are used by industry and in classes.

The Leaders Program and MIT assumed a leadership role in the National Science Foundation-sponsored Next Generation Manufacturing Project (NGM), which seeks to develop an industry-based view of the future and specific examples of new business practices and technologies.

The LFM-spearheaded National Coalition for Manufacturing Leadership (NCML) has 14 members, including new members University of California/San Diego and Northwestern. Having helped establish dual-degree manufacturing programs at Michigan and Obispo, MIT continues to assist Arizona, Georgia Tech, New Mexico, Penn State, and Pomona in their programs.

Stephen C. Graves

William C. Hanson

David E. Hardt

MASTERS PROGRAM

To create and deliver a small MBA program based upon collegiality and teamwork, an international focus and a diversity of cultures and interests. The innovative and integrative curriculum aims to provide a strong analytical foundation to management, encourages the interplay of ideas and their practical application, and allows students to design an individualized educational program exposing them to leading edge research and practice.

HIGHLIGHTS

NEW INITIATIVES

Establishment of a peer tutoring and advising program to promote student-to-student mentoring.

Initiating community service projects and seminars in which students participate in various volunteer activities in the Boston/Cambridge area.

Coordination of six international study trips and academic seminars during the spring term of the academic year.

Continued inviting corporate and industry leaders to work with students through the career management track activities and through interaction with many of the Sloan student organizations such as the Leaders Club, Finance Club, Marketing Club and New Ventures Association.

Project Team, a student organization focusing on team-building skills, organized several successful seminars for fellow students.

Lawrence Abeln

MANAGEMENT OF TECHNOLOGY PROGRAM

The Management of Technology (MOT) Program prepares executives to shape the role of technology in industry and government. The goal is to provide students with solid disciplinary foundations and integrative experiences, expanding their skills as change agents and problem-solvers.

HIGHLIGHTS

NEW INITIATIVES

Incoming class largest ever (52) with the most women enrolled (8)

More company visits to be arranged

International trip will be to Beijing, Hong Kong, and Taipei

Closer collaboration with LFM sponsors will allow more senior executives to enroll

One videoconferenced Seminar in Management (guest speaker) to be arranged

Rochelle Weichman

SYSTEM DESIGN AND MANAGEMENT PROGRAM

To educate future technical leaders in systems engineering/architecture and the conception and design of complex products and systems, preparing them for careers as the technically grounded senior managers of their enterprises. The program is a joint offering of the School of Engineering and the Sloan School of Management, leading to a Master of Science in Engineering and Management.

HIGHLIGHTS

NEW INITIATIVES

Beginning January 1997, the program will offer two tracks: one 13-month on-campus program and one 24-month program with a hybrid of on-campus and off-campus instruction.

Thomas Magnanti

Edward Crawley

EXECUTIVE EDUCATION

To be the preeminent provider of high-quality programs for senior managers and executives in the United States and around the world.

HIGHLIGHTS

NEW INITIATIVES

Short Courses--We are creating a richer variety of short courses targeted to the specific needs we see emerging in industry, particularly in the areas of organizational learning, product development, and corporate finance.

Distance Learning--We are completing a state-of-the-art distance learning facility on campus. Our goal is to use this interactive medium to leverage the worldwide impact of our faculty and extensive contacts with industry.

Research--Industry tells us that one of Sloan's key advantages in the educational marketplace is the future-oriented perspective provided by its research programs. Thus, we have reaffirmed our commitment to maintaining and expanding our research base as a means of adding value to our educational programs.

Links to other parts of MIT--Current joint programs (Management of Technology, Systems Design, and Leaders for Manufacturing) serve as a foundation for additional cross-campus collaborations.

Robert Halperin

PHD PROGRAM

1995 applicants: 372

Admitted: 27 (33% from U.S.; foreign applicants from 53 countries, the majority from China, India, Korea, Taiwan, Canada, and Italy)

Enrolled: 12 (9 men, 3 women), in the following areas:

Behavioral & Policy Sciences: 3

Finance & Accounting: 2

Management Science: 7

Majority of graduates pursue academic careers at Harvard, Cornell, and the University of Pennsylvania

Birger Wernerfelt

Sharon Cayley

VISITING FELLOWS

The MIT Sloan Visiting Fellows Program provides the opportunity to pursue full-time, non-degree studies tailored to individual goals and interests. Each Visiting Fellow's program of study, usually for one or two semesters, is designed in consultation with a faculty adviser to meet individual professional needs and interests.

HIGHLIGHTS AND NEW INITIATIVES

This program has in the past enrolled four to six participants a semester. However, demand for the program has increased over the past two years, with enrollment almost doubling each year. Regular sponsors of participants include Schlumberger and The Bank of Tokyo-Mitsubishi, Ltd.

Eleanor Chin

RESEARCH CENTERS AND INITIATIVES

CENTER FOR COORDINATION SCIENCE

Coordination science and technology draws upon a variety of fields including economics, computer science, organizational theory, information systems, management science, and psychology. The Center for Coordination Science conducts multi-disciplinary research aimed at improving the coordination and integration of work performed by people, firms, and computers.

HIGHLIGHTS/NEW INITIATIVES

Thomas Malone

CENTER FOR ENERGY AND ENVIRONMENTAL POLICY RESEARCH

CEEPR conducts policy-related research in energy and environmental economics, drawing on faculty and student resources from the Sloan School, the Department of Economics, and the Energy Laboratory. An important component of CEEPR is the Joint Program on the Science and Policy of Global Change, jointly conducted with MIT's Center for Global Change Research.

HIGHLIGHTS

NEW INITIATIVES

With the help of a three-year grant from the National Science Foundation, the Joint Program has initiated a new research effort on the interaction of local and global pollution. This research is driven by the recognition that local pollution will be acted upon much sooner than greenhouse gas emissions and that local pollution is a significant contributor, positively and negatively, to global warming.

Continue to expand the four current thrusts of our research: global warming, emissions trading, productivity change in the supply of energy, and electric utility restructuring.

Initiate preliminary research on the use of vertically and horizontally related futures in the crack spread in petroleum and in what is anticipated to become the "spark" spread in electricity markets.

A. Denny Ellerman

CENTER FOR INFORMATION SYSTEMS RESEARCH

Established in 1974, CISR investigates critical issues concerning the management and use of information technology in complex and dynamic organizations. Faculty associated with the Center have conducted pioneering research in such areas as decision support systems, critical success factors, database systems, strategic IS planning, end user computing, executive support systems, and coordination technology.

HIGHLIGHTS/NEW INITIATIVES

John Rockart

FINANCE RESEARCH CENTER

Originally established as the International Financial Services Research Center in 1988, the FRC provides its partners with access to MIT faculty to discuss specific finance issues relevant to their businesses. It also encourages involvement in faculty research on topics of mutual interest, as well as in educational programs on financial management and engineering. The Center also hosts conferences on current financial issues in finance and underwrites a Discussion Paper series for sponsors. The Center has been extremely successful in providing value to sponsor firms through discussions with faculty and focused research relationships.

Research and educational programs focus on:

Corporate Finance--Includes capital budgeting, optimal financial policy, tax strategies, corporate risk management and hedging strategies, corporate disclosure strategies, and investor communications.

Risk Management--Includes financial modeling, statistical analysis, data management, and organizational aspects of risk assessment and control.

Paul Healey

Michael Siegel

INVENTING THE ORGANIZATIONS OF THE 21ST CENTURY

Working with today's innovative managers, we seek to invent the way successful businesses will be organized in the next century. The Initiative is a joint project of the Center for Coordination Science, the Center for Information Systems Research, and the Organizational Learning Center.

HIGHLIGHTS/NEW INITIATIVES

Thomas Malone

MIT CENTER FOR ORGANIZATIONAL LEARNING

The MIT Center for Organizational Learning, established in 1991 as a sponsored research center at the Sloan School, is a consortium of organizations working to advance the state-of-the-art in building learning organizations.

HIGHLIGHTS

NEW INITIATIVES

Redesign process guided by all major stakeholders of the Center, including Consortium CEOs, Liaison Officers, MIT faculty, and OLC staff

The implementation of a public Web site in July 1996 (http://learning.mit.edu)

Peter Senge

OPERATIONS RESEARCH CENTER

The ORC provides educational and research opportunities for students and faculty interested in the interdisciplinary field of operations research, which draws upon ideas from engineering, management, mathematics, and psychology to apply scientific methods to decision-making.

HIGHLIGHTS

NEW INITIATIVES

Finalize revisions to OR doctoral program

Initiate new fundraising venture

Organize 1 to 2 day OR seminars as fundraising projects

Thomas Magnanti

PROGRAM ON THE PHARMACEUTICAL INDUSTRY

The MIT Program on the Pharmaceutical Industry (POPI) was founded in 1991 as a research and education program focused on understanding the structure and dynamics of the global pharmaceutical industry: the pharmaceutical firms, their suppliers, customers and regulators. POPI seeks to improve the performance of the pharmaceutical industry and reduce the cost of healthcare by lowering product costs and decreasing the time it takes to bring new products to patients.

HIGHLIGHTS

NEW INITIATIVES

MIT has begun a major manufacturing technology initiative in collaboration with Purdue University, the Sigel division of Jacobs Engineering, and several pharmaceutical companies. This industry/university Consortium for the Advancement of Manufacturing in Pharmaceuticals (CAMP) is dedicated to the identification, research, and development of new manufacturing technologies. Its objective is to improve healthcare delivery by lowering product cost and decreasing time it takes to get new products to patients. At this time, four major pharmaceutical firms have committed to join CAMP; discussions are underway with others.

Stan Finkelstein

SYSTEM DYNAMICS GROUP

System dynamics is a method for studying the world by looking at things as a whole--understanding how all the objects in a system interact with one another. System dynamics generates behavior as observed in an actual economy from the interactions of local structures and decision-making policies, building a bridge that joins microstructure with macrobehavior.

HIGHLIGHTS/NEW INTIATIVES

John Sterman

MIT Reports to the President 1995-96