Dean, MIT Sloan School Of Management

The academic year 2002–2003 marked the 50th anniversary of the MIT Sloan School of Management, an event that occasioned thoughtful celebration of both our past achievements and the current research and education at the School. In 2001, the School asked teams of leading faculty and students to tackle six of today's most vexing questions in management. These papers were presented at our anniversary celebration, at which more than 1,000 people gathered. Featured guest and speaker UN Secretary-General Kofi Annan, (an MIT Sloan alumnus) was joined by CEOs and business leaders for academic seminars, rigorous discussion, and socializing. It was an unprecedented gathering of faculty and alumni exchanging ideas.

In the spirit of reflection and moving forward, MIT Sloan developed a new mission statement that better expresses our identity and our aspirations: to develop principled, innovative leaders who improve the world and to generate ideas that advance management practice.

The development of our new campus has also been progressing. Moore Ruble Yudell Architects & Planners and Sasaki Associates have finished concept design and schematic design and have worked on integrating the building engineering with architectural design.

This year was one that started amid discourse on business scandals in the marketplace, causing us to rethink—and reaffirm—how and what we teach. As we look ahead at curriculum modifications, we see no tradeoff between developing leaders who are effective and leaders who are principled. We must integrate a concern for ethics and values, for responsibility and professional behavior, throughout the curriculum. We want our graduates to be able to recognize and think through situations with an ethical dimension and to make considered decisions based on recognition of professional standards and high expectations of themselves.

Educational Programs

We have redesigned the MBA curriculum to focus more sharply on developing leaders who can drive successful innovation as well as manage day-to-day execution. The new curriculum includes: a streamlined core curriculum; the MIT Sloan Innovation Period (SIP), where regular classes go on hiatus and students choose from a variety of seminars in leadership and applied research; a 6-1-6 semester schedule, with six weeks of classes on either side of the SIP; and the First-Year Challenge, a live case where students work on a large, complex, multidisciplinary company problem that's currently unfolding.

In July 2003, the School announced a new program called the MIT Sloan Fellows Program in Innovation and Global Leadership to meet the needs of tomorrow's leaders. This new flexible program combines the MIT Sloan Fellows and Management of Technology programs and offers three degree options. The program will provide a dynamic learning environment as the needs, goals, and challenges of entrepreneurs, technologists, and business and government leaders rapidly intersect.

The first students in the new Biomedical Enterprise program came to campus in September 2002. This program is a joint effort between MIT Sloan and the Harvard-MIT Division of Health Science and Technology. Its goal is to create a new generation of leaders for biomedical enterprises through a two-year dual degree program that integrates science, medicine, engineering, and management.

We've seen growth in a number of areas this year. The number of undergraduates majoring in this discipline has continued to increase to 350 undergraduates in AY2003. The number of undergraduate majors has tripled in the last 10 years. The PhD program has continued its climb in applications, now at 709 for this past year, up 94 percent from 1995. The Leaders for Manufacturing program (LFM) had a number of major accomplishments, including a record of 105 students, 5 joint internships in the UK as part of Cambridge-MIT Institute, and several new partners including new managing partner Raytheon. LFM continues not only its vibrant integration with the MBA program, but a key collaborative effort with the school of engineering through the Engineering Systems Division.

Student Programs

MBAs once again organized their annual January Tech Treks to intensively investigate business opportunities in different locales. The students plan intensive schedules where they meet with local companies and business leaders, network, and get a sense of the area. In addition to the traditional trips to California and Asia, students also organized a successful Cambridge/Boston Tech Trek.

The 14th annual MIT $50K Entrepreneurship Competition featured 118 teams with students from across the Institute participating, including a large number of MIT Sloan students. For the 5th year in a row, the winning team's idea was focused on the field of medicine.

New Faculty and Honors

A number of new faculty were appointed during the past academic year, among them: Jonathan Cummings, assistant professor in the Management of Technology, Innovation and Entrepreneurship Group; Joseph Doyle, assistant professor in the Applied Economics Group; Dirk Jenter, assistant professor in the Finance Group; Petra Moser, assistant professor in the Strategy and International Management Group; and Ezra Zuckerman, associate professor without tenure in the behavioral and policy science area.

In addition, there were the following promotions in July 2002: Chris Dellarocas, Kristen Forbes, Georgia Perakis, and Nelson Repenning to associate professor without tenure; Dan Ariely and Simon Johnson to associate professor with tenure; and Richard Locke to full professor.

The following chair appointments were also made: Drazen Prelec, Digital Equipment Corporation Leaders for Manufacturing professor of management; Dan Ariely, Luis Alvarez Renta (1974) associate professor of management; Birger Wernerfelt, J. C. Penney professor of management; Georgia Perakis, MIT Sloan career development associate professor; Jesper Sorensen, Richard S. Leghorn (1939) career development management of technological innovation professorship; Nelson Repenning, J. Spencer Standish career development associate professor; Jeremie Gallien, J. Spencer Standish career development assistant professor; and Simon Johnson, Ronald A. Kurtz associate professor of entrepreneurship.

There were a number of awards to our faculty. Among them were the following:

Kristin Forbes, associate professor of international management, was selected as a 2003 World Economic Forum Global Leader for Tomorrow. President George W. Bush also announced his intention to nominate Forbes as a member of the Council of Economic Advisers.

The Econometric Society elected Bob Gibbons and Andrew Lo as two of their 17 new fellows, selected from among economists all over the world.

Ed Schein received the Marion Gislason Award for Leadership in Executive Development from the BU School of Management Executive Development Roundtable. In addition, his culture model was adopted for the "safety culture" model by the International Atomic Energy Agency at their conference in Rio.

Arnoldo Hax was honored by the Catholic University in Chile for his outstanding contributions to their institution. He has been involved in many areas and has actively participated in the transformation of the school into a more advanced academic institution. Catholic University has also named one of its halls after Hax.

Roberto Fernandez was unanimously selected to receive the annual Distinguished Article Award by the Center for the Study of Inequality at Cornell University, for his recent paper, "Skill-Biased Technological Change and Wage Inequality: Evidence from a Plant Retooling."

Richard Frankel was given the American Accounting Association's Notable Contribution to Accounting Award "to recognize research of exceptional merit" for his paper with Charles Lee.

Lotte Bailyn received the Everett Cherrington Hughes Award for Careers Scholarship from the Careers Division of the Academy of Management. The award recognizes scholarship that has made a significant contribution to linking careers theory with the broader field of organization studies.

Deborah Ancona, Henrik Bressman, and Katrin Kaeufer won the Richard Beckhard Memorial Prize given by the MIT Sloan Management Review "for the most outstanding SMR article on planned change and organizational development." The award recognized their article, "The Comparative Advantage of X-Teams."

Bill Hanson, the codirector of the LFM/SDM program, received the Irwin Sizer Award for the Most Significant Improvement in MIT Education at the Institute Awards Convocation.

The International Center of Mental Health Policy and Economics recognized Ernst Berndt and colleagues with their Excellence in Mental Health Policy and Economic Research Award.

At the annual meeting of the International Communication Association, Pablo Boczkowski received the Communication and Technology Division's Herbert S. Dordick Best Dissertation Award for his work on innovation in online newspapers. He shared this award with Keith Hampton of Urban Studies and Planning.

A special session, "John Little to Now: In Honor of His 75th Birthday," took place on June 14th at the INFORMS Marketing Science Conference.

John Hauser and Ely Dahan have been nominated for the Journal of Product Innovation Management's best paper award for articles published in the 2002 volume for their paper, "The Virtual Customer."

Organizational Changes

Paul Osterman took Gabriel Bitran's place as deputy dean for the MBA Program and faculty hiring and promotion. Tom Allen replaced Steve Eppinger as LFM-SDM codirector. Cindy Albert Link was named executive director for MIT Sloan Resource Development.


The MIT Sloan-International Institute for Management Development alliance held its second program, "Driving Strategic Innovation," in fall 2003. It will be first offered on the MIT Sloan campus, and will be focused on creating value for senior executives seeking growth for their enterprises through successful innovation.

Notable speakers on campus included Louis V. Gerstner, Jr., chairman of the IBM Board of Directors; Dr. Franz B. Humer, chairman and CEO of Roche Holding Ltd.; Philip Watts, chairman of the Committee of Managing Directors for Shell; Scott C. Donnelly, senior vice president of General Electric Global Research; and Dr. Roger M. Perlmutter, executive vice president of Amgen. The MediaTech Club brought in Comcast chairman Michael Armstrong, and the MIT Sloan Fellows students again met with Kofi Annan at the United Nations in New York City.

In addition to Kofi Annan, keynote speakers at the MIT Sloan 50th anniversary celebration included: Phil Condit, Boeing chairman and CEO; Rolf Breuer, chairman of the Supervisory Board of Deutsche Bank; Victor Fung, chairman of Li & Fung Group; Carly Fiorina, Hewlett-Packard chairman and CEO; Richard Wagoner, Jr., General Motors chairman and CEO; and Alex d'Arbeloff, chairman of the MIT Corporation, founder of Teradyne and chairman of Empirix.

In the rankings, U.S. News and World Report ranked MIT Sloan 4th in their 2003 ranking of top business schools, behind Harvard, Stanford and Wharton. BusinessWeek released its list of the best B-schools in October 2002, ranking MIT Sloan 6th. The School was ranked in the top 10 for global scope and faculty quality and number one in the field of technology.


In fall 2002 we implemented the updated MBA curriculum and are preparing for our first year of the MIT Sloan Fellows Program in Innovation and Global Leadership. It will be an exciting year as these big changes are put in place. Our new campus development and fundraising will continue as will our steadfast focus on excellence in education and research.

Richard Schmalensee
John C Head III Dean, MIT Sloan School of Management
Professor of Management and Economics

More information about the MIT Sloan School of Management and its programs can be found on our web site at

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Teaching Programs

Undergraduate Program in Management Science

The MIT Sloan Undergraduate Program ranked second this year in U.S. News & World Report's ranking of American undergraduate business program (up slightly from last year, when we were tied for the second-place slot). The program again ranked first in three specialty areas: management information systems, quantitative analysis/methods, and production/operations management.

With 350 students, the program remains the second largest undergraduate major at MIT (second only to electrical engineering and computer science). As shown in the following chart, enrollment in the program has tripled over the past ten years.

This spring saw a decline in the number of sophomores declaring a major in management science for the fall of 2003 (perhaps due to the difficult economy) and so we anticipate that the growth of the program may start to level off. However, there has been an increase in the number of undergraduates who complete our program as a second MIT major, and we continue to see large numbers of undergraduates from other MIT degree programs enrolling in our management subjects.

One hundred nine SB degrees in management science were awarded this year. The most popular concentration was finance (71), followed by information technologies (21), marketing science (15), and operations research (11). Nine of our graduates completed the requirements for two of these concentrations.

Forty-two percent of our graduates received simultaneous degrees in other MIT departments, compared with 35 percent last year and 24 percent the previous year. Twenty-six received SB degrees in electrical engineering and computer science, six received SB degrees in economics, six in mathematics, two each in biology and architecture, and one each in mechanical engineering, political science, urban studies and planning, chemical engineering, and civil and environmental engineering. Three students received two additional degrees: two received SB and MEng degrees in electrical engineering and computer science; One student received SB degrees in electrical engineering and computer science, and in mathematics.

Undergraduate Advising and Committee Assignments

Faculty serving as undergraduate advisors were Professors Thomas Allen, Dan Ariely, Lotte Bailyn, Gabriel Bitran, Paul Carlile, John Carroll, Chris Dellarocas, John de Figueiredo, Stephen Graves, Leigh Hafrey, Neal Hartman, Starling Hunter III, Jin Gyo Kim, S. P. Kothari, John Little, Stuart Madnick, Fiona Murray, Stewart Myers, James Orlin, Jun Pan, Nelson Repenning, Anjali Sastri, John Van Maanen, Dimitris Vayanos, Yashan Wang, and Roy Welsch along with Dr. Jeffrey Meldman, director of undergraduate programs, Maggie Devine-Sullivan, assistant director of undergraduate programs, and Stephanie Karkut, program coordinator.

The Undergraduate and Interdepartmental Policy Committee was chaired by Professor John Little and included Professors Allen, Carroll, Steven Eppinger, Graves, Madnick, Vayanos together with Dr. Meldman, Ms. Debbie Berechman, and Ms. Devine-Sullivan. Dean Bitran and Professor Wanda Orlikowski served as ex officio members. Dr. Meldman served as chair of the Undergraduate Advisors Committee.

MBA Program

This year was a strategically important one for the MBA Program. During this time, we redesigned the MBA curriculum around the themes of innovation and leadership; enhanced our marketing efforts to expand and improve our pool of applicants and enhance our brand awareness; further refined our admissions selection processes; continued our efforts in faculty/student/staff community building; and enhanced our career education and recruiter outreach initiatives.

Highlights of the year include:

MBA Admissions

The MIT Sloan MBA program received 3,228 applications during the academic year 2002-2003, including 180 candidates who applied for the LFM program. While applications are down by 21 percent from last year's high water mark of 4,102 applications, they are 10 percent higher than in the previous year (2,940 applications). This year's decrease in applications is in line with similar trends at our peer schools.

Three hundred fifty-four MBA students joined the class of 2005. Twenty-six percent of the class is women. This year's class represents 305 companies. The range of work experience is 1 to 16 years and the average years of experience is 5. The range of age is between 20 to 39 years and the average age is 28 years. Fifty-five percent of the class is from North America; 17 percent are from Asia; 12 percent each are from Latin America and Europe; and 2 percent each from Africa and the Middle East.

The leading job functions of the class entering in fall 2003 are consulting (20 percent), finance (18 percent), engineering (11 percent), general management (9 percent), marketing (8 percent).

Several new initiatives were launched during AY2003 to increase the awareness of the MIT Sloan brand and to expand the pool of qualified applicants:

MBA Student Affairs

This academic year, MBA Student Affairs continued to support our 700 MBA/LFM students and, in some cases, enhanced its programs and services. Major accomplishments for the year include the following:

Pre-Term Sessions

In August 2002, approximately 50 international MBAs and International Faculty Fellows participated in MIT Sloan's Communication and Culture workshop, which provided an introduction to US business and social norms, the Sloan educational environment, and the case study method. MBA Student Affairs also offered on-campus pre-term review sessions in Accounting, Economics, and Mathematics/Statistics, which were well attended, as usual, with 192, 184, and 163 student enrollments respectively. MIT Sloan also offered an online MBA course preparation suite in the summer of 2002, in which approximately 110 students participated.

Orientation 2002

This year, MBA Student Affairs led a team of staff, faculty, and students to design and deliver an expanded two-week orientation program. Orientation 2002 introduced new and/or enhanced modules in leadership, professional skills, self-assessment, and ethics, and it offered "tried and true" modules in team process and team skills development. It also offered more opportunities to participate in the MIT graduate student orientation via partnership with the Graduate Student Council.

Student Government and Clubs

MBA Student Affairs continued to work closely with the MIT Sloan Student Senate this year, regularly attending Senate meetings and meeting weekly with the Senate Executive Officers. Student Affairs made steady strides in the continuous improvement of its clubs support infrastructure this year by bringing the club registration process into SloanSpace, enhancing the annual Club Transition workshop, and beginning an initiative to coordinate club contact with external speakers. The Graduate Management Society rewrote its charter to make it accountable to the Sloan Social Committee and MBA Student Affairs.

International Spring Trips

The MBA Program selected and supported five student trips to China, India, Japan/Korea, Greece/Turkey, and Mexico/Cuba. The five major trips involved 109 students.

Community Initiatives

This year the MBA Program once again offered SloanFest, an end-of-year community event piloted two years ago. In addition, we designed and delivered a two-day set of events called Spring Forward, that was intended to serve as a follow-on activity to the 50th anniversary celebrations specifically for the MBA student community. The key goal of Spring Forward was that of developing a sense of "MIT Sloan pride," which continues to be a goal for us in our ongoing initiatives.

MBA Career Development Office

The 2002–2003 academic year was a challenging but successful one for MIT Sloan students in the MBA job marketplace and for the MBA Career Development Office (CDO) staff assisting them with this process. The continued economic recession created a significantly less positive employment picture for our students, and increased their need for support.

In response, the CDO offered over 54 programs on 44 different topics, introduced a full day of career development activities during Orientation, conducted over 250 mock interviews, hosted three industry-specific networking events in excess of 100 guests, led over 400 individual resume reviews and 300 individual cover letter reviews, initiated a job matching program supporting over 200 first- and second-year students, invited industry representatives to campus to advise students, and implemented ten job search strategy groups supporting over 70 second-year students.

Additional, "traditional" seminars were held and included: resume and cover letter development, networking, conducting a proactive job search, MBA charm school, managing relationships with employers, immigration issues for non-US students, interviewing, negotiating, evaluating offers and making final career decisions. Several new seminar topics were introduced including: MBTI for self-assessment and team building, hiring theory and practice, marketing yourself through effective communication, getting a job in a start-up, career strategies, exploratory interviews and phone screens, maximizing your career search during IAP, job search strategies for non-US students, professional presence, debunking the headhunter mystique, and effective networking techniques for career fairs.

The MBA Career Development Office coordinated the logistics for 71 corporate presentations (an increase of 10 percent from AY2002) and 274 interviewing companies (a 10 percent decrease from AY2002). The trend towards recruiting highly qualified MBA interns as a full-time recruiting strategy was continued to be experienced this past year. While the total number of interviewing companies decreased in the past year, the number of companies recruiting summer interns increased 24 percent from the year previous.

At graduation, 82 percent of the class of 2003 reported receiving a job offer. This is at the high end of the range of offer rates from peer institutions (70–87 percent offer rates reported by competitor institutions). The median starting salary for accepted positions increased to $92,000 from $86,000 in 2002.

Top hiring companies for the year include: McKinsey, Bain, Boston Consulting Group, Goldman Sachs, IBM, Citigroup, and Booz-Allen Hamilton.

Doctoral Program

MIT Sloan's doctoral program aims to provide institutions in the United States and abroad with outstanding management faculty and researchers. In 2003, our 19 PhD graduates took positions at other business schools, including Harvard, Yale (2), and the University of Chicago. This year a small number of graduates chose industry (hedge funds).

2003 admissions turned out to be another year of high application numbers (710 total from 61 countries; 26 percent alone from China), due in part to easy web access and the application form available via this method. Again, this was accomplished within the same timetable as last year and no increase in staffing levels or loss of quality control. To ensure continuing efficiency, the PhD program is joining other programs in offering online applications, scheduled to be available in late September 2003. We made 25 offers with 13 of those students accepting.

Total enrollment now stands at 80 students (56 international and 24 US; 26 women). The number of under-represented minority students has dropped to 1. Previous years' participation in the KPMG PhD Project has yielded disappointing results (no successful admits or accepts) so we continue to explore other means to increase the participation of minority students in PhD studies here. A meeting of the heads of seven major PhD Programs (MIT, Harvard, Wharton, Columbia, Chicago, Northwestern, Stanford) we hosted in early September 2002 produced suggestions for sharing information on a web site (still to be realized) and agreement that the pool of potential minority applicants remains exceedingly small.

The MIT Sloan PhD Program has arguably been number one for several years, but our financial situation will make it hard to defend that position.

Executive Education

MIT Sloan's Office of Executive Education has continued its efforts to provide superior executive programs to those companies strategically driven by innovation, emerging technologies, entrepreneurship, and obtaining global reach. Drawing on MIT Sloan's research depth and expertise, Executive Education seeks to provide frameworks, concepts, and tools to assist executives in addressing critical business problems.

The Committee on Non-Degreed Executive Education completed a strategic positioning study to align executive education more closely with the mission of the MIT Sloan School. Executive Education seeks to hold a premier position in Leadership of the Innovative Enterprise. As a result of the study, Executive Education has redefined its portfolio of offerings around this positioning, and will develop new programs that will enhance this positioning.

Executive Education has entered into a partnership in executive education with the International Institute for Management Development (IMD), the leading provider of executive education in Europe. Together MIT Sloan and IMD will offer three open-enrollment programs each year in Cambridge, MA and Lausanne, Switzerland. Each program will have a faculty codirector from each school and faculty from both schools will participate in every offering. In addition to enhancing the presence of each school on both continents, we also expect that these programs will serve as "platforms" for custom executive education programs. Our objectives for pursuing the collaboration are to learn from each other institutionally by sharing best practices, to develop joint executive education programs that build on the two schools' strong brands, and to enhance both schools' intellectual capital through these teaching/learning initiatives.

Another key initiative this year has been our engagement with BP, in collaboration with the School of Engineering, on the design and delivery of Projects Academy. Projects Academy is a multiterm, multiyear initiative that seeks to enhance the skills of BP's major project leaders and redefine the field of project management. BP executives are connected between residential sessions at MIT and supported in their project teams via the Virtual Academy, a joint effort of Executive Education and STS.

A third successful program was delivered to Merrill Lynch, an MIT partnership company. Using distance-learning technology, Professor Andrew Lo's Advanced Investments course was offered to Merrill Lynch traders around the world. This year's program was enhanced with the addition of Professor Deborah Ancona's expertise on teams combining an emphasis on financial content with the skills of team implementation.

A second program will be delivered to GE this year. GE looks to MIT Sloan and MIT's expertise in cutting-edge information technology and information technology strategy for the development of its high-potential information systems managers. Each year, a cross-section of key managers from across the GE Corporation come to MIT Sloan to explore the newest advances in information technology and in the application of this technology for business value.

Being at the forefront of new learning technologies allows MIT Sloan's Office of Executive Education to meet the needs of its corporate partners for cutting-edge knowledge on a global basis. The conversion of Professor Rebecca Henderson's popular two-day program, Developing and Managing a Successful Product and Technology Strategy, is a first step that will allow us to work more closely with Corporate Universities and Corporate Development Centers on blended learning models of executive education that deliver core content and allow for local customization and facilitation.

The Task Force for Degreed Executive Education completed its study and recommended the integration of the School's two residential programs, the MIT Sloan Fellows Program and the Management of Technology (MOT) Program into one program with two delivery options, residential and flexible. The new MIT Sloan Fellows Program in Innovation and Global Leadership integrates the innovation and entrepreneurial focus of the MOT program with the global leadership emphasis of the MIT Sloan Fellows Program. The flexible option will allow executives to complete the program in two years after participating in an intensive 12-week residential summer session. The flexible option seeks to attract local technology companies for whom the one-year residential requirement had previously been an obstacle to their attendance.

Sloan Visiting Fellows Program

The MIT Sloan Visiting Fellows Program provides the opportunity to pursue full-time, nondegree studies tailored to individual goals and interests. Each visiting fellow follows a program of study (usually for one or two semesters) that is designed in consultation with a faculty adviser to meet individual professional needs and interests.

MIT Sloan Visiting Fellows is a small program. Participants usually have an existing relationship with the School through their company, their school, or a member of the MIT Sloan faculty. Enrollment per semester averages around 10. Six participants were enrolled in fall 2002 and 13 in spring 2003.

The 2002–2003 academic year included both self-sponsored and company-sponsored participants as well as visiting students from Ghent University/Vlerick Leuven Gent Management School and the Norwegian University of Sciences and Technology (NTNU).

The participants from NTNU (1 in fall and 8 in spring) joined the MOT participants in the Seminar in Management of Technology—a required class for both groups. Since the programs use similar selection criteria, the groups were able to form an excellent cohort through this class and benefited greatly from the exchange of cultures and knowledge.

Sponsors of participants included Ishikawajima-Harima Heavy Industries Co., Ltd, NEC Corporation, TY Securities (Korea), Samsung Electronics America, and Captive Finance Ltd.

More information on the Sloan Visiting Fellows Program can be found on the web at

Leaders for Manufacturing

The Leaders for Manufacturing (LFM) program is a partnership between MIT and more than 25 global manufacturing firms to discover and translate into teaching and practice principles that produce world-class manufacturing and manufacturing leaders. This partnership is motivated by our shared belief that excellence in manufacturing is critical to meeting the economic and social needs of individuals, firms, and society, and that the health of companies operating in global markets is essential to society's well being.

Now, in its 15th year of operation, LFM is a partnership between the School of Engineering, the MIT Sloan School of Management, and leading manufacturers. Launched in 1988 with significant industry funding, the program emphasizes collaboration and knowledge sharing with its partner companies across the entire spectrum of "Big-M" manufacturing enterprise issues. LFM supports students as fellows in the program (with fully paid tuition). The largest component of the educational efforts is the LFM Fellows Program, a 24-month dual master's degree (SM in engineering and MBA or SM in management) experience, involving a single integrative research project carried out on site in partner firms.

Academic Programs

Forty-eight students in the class of 2003 completed the LFM Fellows program and approximately 80 percent have taken positions in manufacturing firms. Each of the 48 graduates completed an internship at a partner company during the summer and fall of 2002. Internships are focused projects of concerns to the partners, accomplished by interns with company support and MIT faculty guidance. Representative projects this past year included the use of modeling and critical operations data to optimize plant performance, applying lean manufacturing techniques for the design of an aircraft assembly line, and supply chain performance through forecasting.

Another 57 students (class of 2004) completed their first year of on-campus studies and are starting their six-month internships. Forty-eight new students (class of 2005) were admitted and have begun an intensive summer session. The class of 2005 has an average of 4.8 years of work experience. Don Rosenfield continues to serve as the director of the LFM Fellows Programs. Codirectors for the program were Paul Lagace, Bill Hanson, and Steve Eppinger.

Research and Knowledge Transfer Program

As part of LFM and SDM's commitment to lifelong learning, an initiative begun in FY2002 was continued to encourage LFM and SDM alumni to stay connected with MIT by sharing relevant information. Paul Gallagher, research associate for LFM and SDM, scheduled monthly web casts presented by MIT faculty and various LFM and SDM alumni. The content of each webcast, also called "webinars," provides valuable information on the latest trends, cutting-edge developments and innovative strategies, all of which pertain to manufacturing and/or systems design. The presentations are given in real time, via the Internet and telephone, which allowed participants to follow along visually and audibly as well as ask questions.

Alumni continue to express a high degree of interest in these virtual knowledge-sharing events, and webinars have evolved into a key strategy for alumni engagement. Statistics for FY2003 are below:

Approximate total connections: 334
Estimated total viewers: 580
Unique individuals who attended: 224
Unique alumni who attended: 177 (23% of total alumni base)


LFM continues its leadership role in the National Coalition of Manufacturing Leadership (NCML), a partnership of 15 universities with joint management and engineering manufacturing programs. The NCML met at Loyola Marymount University in November 2002. In attendance were several universities in various stages of starting joint management and engineering manufacturing programs, including Loyola Marymount, University of Texas Pan American, Rochester Institute of Technology, University of California at Los Angeles, and University of California at San Diego. A key objective of the NCML is to serve as a resource for new joint programs, and it was gratifying to see that the concept begun at LFM of a "bilingual" (management/engineering) education in manufacturing leadership continues to spawn new programs that can be used to meet the need for global manufacturing leaders.


LFM students, sponsored and non-sponsored, continue to be highly sought once they have completed the program. Partner companies as well as other organizations take a special interest in LFM students as proven by their commitment to speak to the class on various issues during the Pro Seminar session. About 80 percent of each class accepts positions within the manufacturing industry while the percentage of students accepting positions within partner companies has remained at about 50 percent.


SDM, along with its partner program, LFM, have been incorporated under the Engineering Systems Division umbrella. The first step in this integration was a physical move of LFM and SDM from the fourth to the third floor in E40 in spring 2003 where LFM-SDM shares space with the other ESD academic programs, the Masters of Engineering in Logistics Program and the Technology and Policy Program. Further synergies will be sought in FY2004 including a review of the ESD staffing structure as a way to reduce overall staff headcount and administrative reporting for both LFM and SDM through ESD. The assumption of Institute oversight by ESD should benefit SDM immediately by assuring faculty resources for the core SDM courses offered by ESD.

More information about the Leaders for Manufacturing Program can be found on the web at

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Center for eBusiness

Since its inception in 1999, the Center for eBusiness has attracted more than $16 million of funding to MIT Sloan. With this financial support, the center has been able to finance 38 focused research projects and 26 vision research projects. It also provides major support for 6 new MBA courses; the Digital Business Strategy MBA Track; the MIT eBusiness Awards; the MIT CIO Summit; and 50 workshops, conferences, and seminars, as well as a research and educational infrastructure with a full complement of center faculty and professionals.

The FY2003 plan proposed the implementation of Phase II of the Center for eBusiness. The plan was approved by MIT Sloan and the center's board of advisors in October 2002. Since then the center has largely implemented its major components. The most significant change is the organization of the center into five research groups called Special Interest Groups (SIGs).

Accomplishments of the center can be summarized as follows:

More information about the Center for eBusiness at MIT can be found on the web at

Center for Energy and Environmental Policy Research

The Center for Energy and Environmental Policy Research (CEEPR) has been the locus of research at MIT on energy economics since the mid-1970s and on environmental economics since the late 1980s. This research draws on resources from MIT Sloan, the Department of Economics, and the Laboratory for Energy and the Environment, and it receives financial support from corporations and government agencies. In conjunction with MIT's Center for Global Change Science, CEEPR cosponsors the Joint Program on the Science and Policy of Global Change, which conducts interdisciplinary research to inform global climate policy.

Activities and Publications

Research activity continued at a high level during the 2002–2003 academic year as a result of grants from twelve corporate sponsors, the Cambridge-MIT Institute (CMI), and the Environmental Protection Agency. Dr. Michael Pollitt of the Judge Institute of Management Studies at Cambridge University was a visitor at CEEPR during the spring semester as part of MIT's collaboration with Cambridge University.

The past year was especially fruitful for publications. Twenty working papers and six article reprints reporting CEEPR and CMI-sponsored research were published, distributed, and posted on the CEEPR web site. In December 2002 and May 2003, CEEPR convened its usual Energy and Environmental Policy Workshop in Cambridge, MA to present research results to corporate and government sponsors and other interested parties. Finally, the director and executive director of CEEPR were invited to give numerous lectures and seminar presentations of CEEPR's research concerning electric utility restructuring and emissions trading.

Grants and Research Program

In the 2002–2003 academic year, CEEPR sponsored research on the topics of emissions trading, new electricity markets, and energy futures, forwards, and arbitrage. Contributions totaling $433,000 were received from 12 corporate sponsors and earlier multiyear awards from the US Environmental Protection Agency and the Cambridge-MIT Institute provided another $265,000 in funding.

During the 2003–2004 academic year, CEEPR will continue to focus its research on electric utility restructuring and emissions trading, and we will welcome Professor Richard Green of the University of Hull in the United Kingdom as a visitor during the spring semester.

More information about the Center for Energy and Environmental Policy Research can be found on the web at

Program on the Pharmaceutical Industry

The MIT Program on the Pharmaceutical Industry (POPI) was founded in 1991 as a research and education program for understanding the structure and dynamics of global pharmaceutical industry, the firms and their suppliers, customers, and regulators. At POPI, our research and educational programs explore the challenges and opportunities before the pharmaceutical industry from discovery and development of new drugs to issues of manufacturing and marketing.

Over our long history, POPI's contributions have been significant. Our research has helped create a more profound understanding of the dynamics of the pharmaceutical industry; the interplay of healthcare policy and drug development; and the criticality of ensuring that innovation thrives to ensure that society continues to reap the benefits of drug therapies. During 2002–2003, our research has helped advance knowledge in areas such as drug development for unmet medical needs; the economic evaluation of pharmaceuticals; improved drug manufacturing; the regulatory process; and the impact of technology as a driver of change in the pharmaceutical industry.

Currently, more than 12 MIT faculty members and numerous outside collaborators from other universities, industry, and government are participating in the research program. Since POPI's inception, more than 30 MIT graduate students have completed doctoral work with support from POPI. More than 20 pharmaceutical, biotechnology, or other healthcare firms have contributed funding and/or data for POPI's research educational activities. As of June 30, 2003, more than 100 articles and working papers have reported on research conducted by POPI faculty and students.

POPI faculty members continue to work closely with the new Biomedical Enterprise master's degree curriculum, offered jointly by MIT Sloan and the Harvard-MIT Division of Health Sciences and Technology. POPI's academic subject 15.136J Principles and Practice of Drug Development, taught jointly by five faculty members, is an integral aspect of the program.

POPI's current research has as its general theme the implications of advancing science and technology in drug development and changing medical practices. To advance our work in this area, we are holding three focused workshops to outline key questions to be addressed by our research teams. From those workshops, new teams of collaborating researchers will be constituted. They will bring together faculty and doctoral students from the multiple disciplines at MIT that have traditionally been a part of our research, along with representatives from industry and government. These projects are our current funding priorities.

POPI works closely with the Institute's Computational and Systems Biology Intiative (CSBi) and the Consortium for Advancement of Manufacture of Pharmaceuticals (CAMP).

More information about Program on the Pharmaceutical Industry (POPI) can be found on the web at

Administration and Services

MIT Sloan Educational Services

MIT Sloan Educational Services (SES) manages the School's academic infrastructure, supporting all Sloan programs, faculty, and students in the educational process. The SES team is responsible for preparing the physical landscape (facilities maintenance and space renovations), the academic foundation (course catalogue updates, course scheduling, course bidding, and student registration), and oversight of information flow (internal publications, liaison with MIT Registrar, grades, evaluations).

Our team administers registration-related services provided to a growing population of master's level Sloan students. We manage the web-based course prioritization (bidding) system used by more than 2,000 students, equitably resolving difficult supply and demand issues in a department with increasingly popular classes and already high enrollments. We also handle scheduling of the 200 class sections and recitations offered each term; maintain Sloan facilities; and produce web-based and printed resources for the School (including the PhotoBook, Student Directory, student biocards, and the weekly News@Sloan newsletter).

SES continues its focus on streamlining organizational processes and systems, striving to provide the best possible support to our various constituencies. Continuous improvement and curricular reform initiatives throughout MIT Sloan this past year will impose many new challenges to the SES team in the coming year. Modifying systems while maintaining the same high level of service to the community is paramount. As in previous years, SES continues to refine its analysis of bidding data to assist Sloan's deans and faculty on issues of demand regarding course and section offerings and teaching load plans.

Facilities management remains among the highest of priorities for SES. The staff oversaw the renovation of multiple Sloan spaces, including our own E52-101, and the moves of many faculty and staff. Provision of additional student study space, especially for team-based projects, continues to be a great challenge. Team Time, a newly designed SES project this past year, identifies blocks of available classroom time and provides telephones for student team needs. SES staff continues its collaboration with the Sloan New Building Committee, providing necessary data regarding Sloan operations and current facilities usage.

Enrollment in Sloan electives remains high and continues to be of great interest to students across all MIT departments. The School continues to explore ways to forecast and meet demand, including additional sections of classes, videotaped sessions, special seminars, and new joint agreements with other MIT departments. SES assists in balancing scarce resources such as classroom space and faculty teaching time across all programs. Finding new ways to track and analyze data is vital in this Sloan-wide effort.

Goals for 2003–2004 include ongoing initiatives to revise the course scheduling process, creating a data warehouse which incorporates historical teaching data; automation of the teaching/course evaluation process; design of an auditing database for student record maintenance; the introduction of the student PhotoBook online; building a strong SloanSpace web presence to better support Sloan students, faculty members, and TAs; the design and implementation of a new course prioritization system; a new enrollment management and tracking system for Sloan Innovation Period (SIP); renovation of two student teams study spaces and continued enhancement of current facilities as we plan for those of the future. As always, we will continue our collaboration with students and faculty to best meet their changing needs.

More information about MIT Sloan Educational Services can be found on the web through the Students tab on the MIT Sloan web site at

Corporate Relations

The MIT Sloan School of Management's Office of Corporate Relations (OCR) continued building its corporate relations program to broaden and strengthen relationships with Sloan's top corporate sponsors. A new director of corporate relations was appointed mid-year.

The office continues to collaborate with the Sloan Career Development office and other program offices to develop processes to identify, track, and solicit engagement with and contributions to the School from key corporate sponsors and recruiters. The office also supports the Sloan Distinguished Speaker Series, coordinating efforts with the MBA Program office and the Industrial Liaison Program (ILP). Michael Dell spoke at Sloan in FY2003. Coordinating with the ILP, the OCR also assembled a panel of executives to speak at the School's second annual innovations in management conference in May 2003.

The OCR started working with the dean's office to conduct interviews of faculty and business executives to determine the best way for Sloan to position itself in the biotech and pharmaceutical industries. The office is exploring potential executive education, recruiting, and research opportunities in these industries.

More information about the Office of Corporate Relations and its programs can be found on the web at

MIT Sloan Management Review

MIT Sloan Management Review (SMR) is a quarterly journal providing senior managers with the best current management theory and practice. Selected submissions from academia, consulting, and industry are both internally reviewed and peer-reviewed and cover a range of management disciplines, with particular focus on corporate strategy, leadership, and management of technology and innovation.

In spite of another difficult economic year for magazines, SMR's revenues were up 21 percent during FY2003. The most significant increases were seen in third party licensing agreements, which reflect a shift throughout the industry from traditional print publishing to electronic distribution channels. Permissions income more than doubled, while print subscription copies were down slightly.

SMR has continued to develop cooperative relationships with MIT Sloan's Alumni association and MIT Sloan Executive Education, as well as providing service of SMR to corporate members of the Industrial Liaison Program.

The journal continues to enjoy a healthy stream of manuscript submissions, of which approximately 10 percent are selected for publication. Nearly 75 percent of authors published were from academic institutions, with the remaining 25 percent from consulting, industry or professional journalism. Of academic authors, including MIT Sloan faculty, 60 percent were from the top-ten-rated US and international business schools. Of all authors, 32 percent were from international institutions (as compared to 18 percent last year).

A listing of major authors published in SMR during 2003 follows:

A number of SMR articles were cited in the press this year. Citation sources included the Boston Globe, The Independent (UK), The Observer (UK), Harvard Management Update, Financial Times, Strategic Finance, MIT Technology Review, IDG News Service, Australian Financial Review, Business Standard (India), National Post (Canada), MeansBusiness (web site), Managing Customer Service, Kitchener-Waterloo Record (Canada), The Sydney Morning Herald (Australia) and The Australian (newspaper).

Looking ahead to FY2004, the journal plans to continue to refine its editorial charter—aggressively expanding its author pool and adding new content and formats to become even more relevant to practicing managers and even more international in its scope.

MIT Sloan Technology Services

MIT Sloan Technology Services supports the information technology needs of faculty, students, staff, and alumni. Our strategic focus during this past year has been in the following areas:

Our key goals for the coming year are as follows:


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