http:// mitsloan.mit.edu
December 2000 Vol. 3 No. 1
roi
Periodic statements from the MIT Sloan School of Management
E B I Z
F R O M
A L L
A N G L E S
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Inside the thriving Center for eBusiness@MIT
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Leadership in action
15
Cocktail party management
T H E
M I T
S L O A N
M I S S I O N :
To be the leading academic source of innovation in management theory and practice A S P I R A T I O N S
CONTENTS 1
A message from Dean Schmalensee Rounding out a year of positives and promise
> Develop effective, innovative, and principled leaders who advance the global economy > Conduct rigorous and innovative research that improves management theory and practice
G U I D I N G
2
The Center for eBusiness@MIT It’s not just for Internet startups anymore
P R I N C I P L E S
> Enroll men and women with exceptional intellectual and leadership
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> Provide balanced, rigorous, and effective education for a world increasingly driven by new technology, globalization, and
Disclosure EBusiness and entrepreneurship score big
ability in our educational programs
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entrepreneurial opportunity
Charting the course of leadership At Sloan, leaders learn by doing
> Foster a diverse and supportive learning community of students, faculty, staff, alumni, and business partners
8
excellence in research and education > Build linkages across MIT that enhance and exploit the Institute’s
Briefs Sloan’s rise in the ranks; good news from the CDO; the latest from SMR
> Attract, develop, and retain outstanding faculty and staff who produce
10
distinctive intellectual excellence
Globalization Reunion 2000 recap; Alumni Leadership Conference; Olympic alum
> Develop a working environment based on mutual respect, high ethical standards, and productive collaboration 13
Intellectual Capital Sloan authors explore the U.S. Acid Rain Program
roi
13 Periodic statements from the MIT Sloan School of Management
http://mitsloan.mit.edu/roi
Class notes: honors and appointments 14
Resource Development Fundraising update
Publisher: Mary Schaefer, Director of Communication Editor: Michelle M. Choate, Associate Director of Communication
Executive summaries
15
Contributors: Linda Jenkins, Riverside Communications; Leslie Limon;
“Going up?” E-lab teaches one-minute elevator speech and other tactics to win over prospects
Allan Csiky; Lara Beise, Communication Coordinator Photographer: Mark Ostow Copyeditor: Linda Walsh, Editorial Express
IBC
MIT Sloan ROI, your Return on Investment in MIT Sloan, is a news
Next steps Stay connected with Sloan
Printing: Quebecor World Eusey BC
Upcoming events
publication for the alumni, faculty, students, staff, corporate partners, and friends of the MIT Sloan School of Management. Send address changes and correspondence to MIT Sloan ROI, MIT Sloan School of Management, Office of Communication, E60-334A,
O N
77 Massachusetts Avenue, Cambridge, Massachusetts 02139. Telephone
As leaders of the Center for eBusiness@MIT, (l to r)
617-253-7750; fax 617-258-6796; email
[email protected].
Codirectors Glen Urban and Erik Brynjolfsson, and
T H E
C O V E R :
Executive Director Peter Metz are looking at the
Copyright ©2000 Printed on 100% post-consumer waste paper
future of eBusiness from all sides.
A MESSAGE FROM DEAN SCHMALENSEE >
R O U N D I N G
O U T
A
Y E A R
O F
P O S I T I V E S
A N D
P R O M I S E
I have a lot of good news from Sloan to report. This year has been marked by the successful implementation of Sloan’s newly redesigned MBA core requirements. The program was
Our fall looks equally bright. We continue to draw the
retooled around the School’s educational mission: to develop
nation’s and the world’s top students. Three hundred and
effective, innovative, and principled leaders; and it seems to
fourteen men and women — with a median GMAT score of
have been well accepted by the students.
710 — started the MBA program this fall, coming to us from
Research has been very active, with new initiatives as
all corners of the world. They’re already deep in their studies
well as established ones. Sloan launched the New Economy
and join the class of 2001, our Sloan Fellows, LFM, SDM,
Value Research Laboratory this year, with a pledge of $10
MOT, doctoral, and undergraduate students in the Sloan
million from Arthur Andersen. This lab, under the direction of
campus’s rich intellectual and social network.
Professor of Accounting S.P. Kothari, is studying creation,
In addition to very promising incoming classes of
management, and measurement of value in our new economy.
students, we’ve got a top-notch set of new faculty. Fourteen
The Center for eBusiness@MIT is now well under way. The
new faculty joined us for the fall, including three new faculty
Center will support rigorous research, intensive contacts with
each in accounting, finance, and entrepreneurship. This place
industry, and large-scale curriculum development. It solidifies
has lots of fresh ideas flowing.
We’ve done very well in the national rankings. U.S. News
going on at Sloan. Our cover story profiles the thriving Center
& World Report ranked our undergraduate program second in
for eBusiness@MIT. EBusiness seems to be on everyone’s
the nation. This fall, BusinessWeek announced that MIT Sloan
radar screen, as new companies pop up each week, and
had moved up 11 slots in its ranking of business schools, to
traditional companies struggle to transition to the new
fourth place. We’re also fourth in the U.S. News survey of top
economy. In this climate, the Center is positioned to provide
MBA programs, and the Financial Times survey of the world’s
thought-leadership for Internet-focused technology,
business schools, both moving up a notch from last year. In
management, and business strategy. Read more about their
Forbes’ new ranking of b-schools, Sloan was rated sixth.
research and approach as Sloan continues at the forefront of
We’re pleased to get such positive feedback as we continue to
this hot area.
be recognized as one of the best business schools in the world.
All Sloan students will take leadership positions of some
This year, we smashed prior records for reunion attendance
type in the future. To help support that, Sloan is integrating
and reunion class gifts. In addition, over 900 alumni gave their
leadership skill-building into a number of courses, not just
time and talent to the School. We’ve also been quite fortunate to
looking at it as a separate skill-building area. You learn more
benefit from two very generous gifts from Bill Porter and Kenan
about Sloan’s new approach in this issue.
Sahin, as well as generous support from many others to aid the
Also look for some cocktail party and event navigation
funding of our new facilities. Confident in the generosity of our
tips from senior lecturers and entrepreneurs Ken Morse and
alumni, we are moving rapidly on site and architect selection
John Preston.
and should have more to report on this in the near future. To
In the spirit of continuous improvement, ROI’s made
recognize and support this tremendous alumni involvement,
some design changes to keep it fresh and readable. You’ll see
Sloan held its second Alumni Leadership Conference this
some content changes, such as new features in the upcoming
September for volunteers from around the world.
issues, to provide you with the kind of information you want
http://mitsloan.mit.edu
This issue of ROI focuses on just a few of the positives
to read. I’d be interested in your feedback. Best wishes for a successful fall, and please keep in touch. If you haven’t been to our web site lately, why not visit it now?
Dick Schmalensee Dean, MIT Sloan School of Management 1
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our leadership role in this area.
T H E
C E N T E R
F O R
eBusiness
>
I T ’ S
N O T
J U S T
@MIT:
F O R
I N T E R N E T
S T A R T U P S
A N Y M O R E
According to Professor Erik Brynjolfsson, “If a company’s interests can be matched with a faculty member’s, that’s great for the faculty and great for the company, too. We look for a natural fit.”
2
F E A T U R E
Electronic business (eBusiness) evokes an image of a group of young
More than 30 corporate sponsors provide funding for the Center’s
engineers and b-school grads toiling long into the night in a converted
research. They include some of the usual eBusiness suspects, like
loft. With the clacking of keyboards and spirited brainstorming, they
Hewlett-Packard and Dell, as well as companies that aren’t top-of-
work to launch their Internet startup — hoping, like so many others,
mind as eBusinesses — like GM, a founding sponsor of the Center for
that an initial public offering will make them millionaires before the ink
eBusiness@MIT, and Visteon, a newly independent automotive
dries on their diplomas.
components unit spun off from Ford Motor Company.
There are certainly enough stories in the popular culture to lend
Sponsoring companies believe they can get a leg up in their own
credence to that image. But eBusiness has continued to grow at
eBusiness ventures by staying on top of the trends identified in
Internet speed ever since technology opened the door to the
research. GM is working in the B2C arena, while Visteon’s electronic
possibilities of a digital economy — not only for dotcom startups, but
procurement system, which allows real-time, online bidding, is a B2B
for traditional businesses as well.
application. The system allows vendors from around the world to bid
Take General Motors. As a traditional manufacturer, the company
online, enabling Visteon to select the best global suppliers.
buyers in selecting the products they want. Beyond that, GM intends to
Sloan research maps eBusiness knowledge
use what it learns about buyers’ needs to help the company design
Brynjolfsson and Urban feel that matching faculty research with
future products and features. Both initiatives are based on research
sponsor interest stimulates meaningful participation. Sponsors are
done by Sloan faculty.
paired with faculty members who share a common interest in specific
At Sloan, the Center for eBusiness@MIT (http://ebusiness.
areas of research. While this limits the number of sponsorships
mit.edu) has paralleled the rapid growth of eBusiness and has become,
available to interested companies, Brynjolfsson says this approach
in less than a year, the largest Sloan Research Center, as measured by
assures sponsors that their participation is directly related to their
the financial support it provides for research and teaching. The Center
business interests.
answered a need to provide a common home for academic research, a
“If a company’s interests can be matched with a faculty
track of eBusiness studies for MBA and PhD students, and executive
member’s research, that’s great for the faculty and great for the
education programs that teach managers worldwide what works in
company, too. We look for a natural fit. We don’t go looking for
eBusiness.
company funding and then try to persuade faculty to do research that
Codirectors Professors Erik Brynjolfsson and Glen Urban envision
isn’t otherwise interesting to them,” Brynjolfsson explains.
the Center as providing continued thought-leadership for Internet-
Research is a cornerstone of eBusiness activity at Sloan. In
focused technology, management, and business strategy within the
addition to advancing available information about business in the
changing eBusiness economy.
digital economy, research also teaches students involved in projects
http://mitsloan.mit.edu
has ambitions to use Internet technology to assist potential vehicle
Professor Glen Urban says the Center’s use of live cases is a pragmatic solution to the dearth of available written case studies. “We bring in a CEO of a company and instead of a typical written case study,
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the CEO presents a current problem, shares the background, and then our students work to solve the problem directly with the CEO.”
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>
E X E C S
F L O C K
EXECUTIVE
T O
E B U S I N E S S
EDUCATION
PROGRAMS
Conducting research is only the first chapter of the eBusiness story. Putting eBusiness knowledge to work is the methods of mapping an area of study, analyzing data, and
what spurs corporations to participate in executive
publishing results. Sponsoring companies are interested in applying
education programs sponsored by the Center for
research in ways that directly affect their business practices in digital
eBusiness@MIT.
markets, and are active participants in executive education programs that teach how to apply eBusiness strategies in the real world.
Among the most popular is “Developing an Internet Business Strategy,” a two-day session for senior executives that is taught three times annually by Sloan faculty. The
Impact and evolution
program is available to executives from any company,
Sloan research in eBusiness is helping companies break new ground in
though slots fill quickly and are already closed through the
the digital economy. In a paper titled “Frictionless Commerce? — A
year 2000. Center sponsors have reserved slots in the
comparison of Internet and conventional retailers,” Erik Brynjolfsson
program, and the Center is developing additional executive
and Michael D. Smith found that Internet retailers have a price
education programs tailored to the needs of sponsoring
advantage over their brick-and-mortar counterparts in selling books
companies.
and compact discs. Surprisingly, though, the sellers with the lowest
Executive education in eBusiness complements the
prices online don’t make the most sales. Buyers are willing to pay higher
array of degree and nondegree executive education
prices to an outlet with an established brand identity that they trust.
programs offered through the Office of Executive
After learning about companies like these in the main eBusiness course at Sloan, Alex Kleiner, SM ’98, started up a company named Frictionless Commerce, Inc. the day after graduation, using the term that now describes Internet business transactions. Kleiner had met Rob Guttman, a student at the MIT Media Lab in the same course, and they decided to cofound the company to commercialize these ideas and technologies. Two years later, the company employs 90 people and provides intelligent purchasing technologies that automate electronic markets for its customers. Frictionless Commerce’s inception is evidence of how the Center’s cutting-edge research helps businesses forge strategies in the everchanging Internet economy. “There is B2C, B2B, and now increasing attention to mobile or wireless commerce — what’s more, many new types of commerce have yet to be invented,” says Brynjolfsson. “More and more of these concepts are working their way into mainstream business, teaching, and research. But, for the foreseeable future, there will always be a cutting edge, and it will be beneficial for some group of faculty, companies, and students to understand that cutting edge. And that cutting edge is where the Center for eBusiness@MIT will be.”
By Linda Jenkins Additional research by Allan Csiky
As executive director, Peter Metz helps to guide the Center in its quest to coordinate academic research in eBusiness, tracks of eBusiness studies for MBA and PhD students, corporate research, and executive education.
4
Education at MIT Sloan. For more information, visit the web site at http://mitsloan.mit.edu/execed.
DISCLOSURE >
S L O A N
I N
T H E
M E D I A
Ebiz and entrepreneurship score big The Sloan eBusiness Awards more than doubled the amount of media in its second year. Beginning with an Oscar-like column in the Boston Globe predicting winners in each category, coverage culminated with a photo of award
Profs proffer
organizers carrying a giant “e” in front of the MIT dome that
Sloan Professor Arnie Barnett warns the public to challenge
appeared in newspapers internationally. The Johnson City
what it reads. In his article “It’s a Crime What Some People
Press, Tennessee; Northwest Florida Daily; Deseret News,
Do With Statistics,” Professor Barnett cites examples of how
Utah; Watertown Daily Times, New York; and German
certain statistics that are misleading have made their way into
Handelsblatt were just a few that ran the photo. Financial
debates about crime, punishment, and race.
Times, Mass High-Tech, CBS Marketwatch, dbusiness.com, E-
Professor Thomas Kochan expresses his views on labor
Commerce Times, WBZ-AM (Boston), and WINS-AM (New
reform in his op ed “A Manifesto for American Workers,”
York) also covered the awards.
featured in the Financial Times. Professor Kochan argues that
The 11th annual MIT $50K Entrepreneurship Competition
presidential candidates must address the problems facing
had unprecedented coverage this year. The event has grown
working families and their employers today in order to adapt
considerably with 1,000 attending and lots of pre- and post-
to the new economy.
event press. Coverage included CNNfn; “National Public Radio
An op ed by Professor Tom Malone and Rob Laubacher
Morning Edition;” WCVB-TV, Channel 5; WHDH-TV, Channel 7;
entitled “The Rebirth of the Guild” was featured in the Boston
the Boston Globe; AP; Financial Times; the San Francisco
Globe. As an emergence of the authors’ work in MIT’s
Chronicle; Forbes; Fortune; Red Herring; Mass High-Tech; and
initiative on “Inventing the Organizations of the 21st
BusinessWeek.
Century,” they discuss the future of the employment contract
One notable recent feature included the Boston Globe’s “A Toast to the Legacy of MIT” in northern California. Alex
as American workers move away from the traditional fulltime job to “e-lancing.”
mitsloan.mit.edu http://mitsloan.mit.edu
Pham, the Globe’s Silicon Valley reporter, attended an Entrepreneurship Center event hosted by Dean Schmalensee and Senior Lecturer Ken Morse and chronicled the Who’s Who of MIT California alumni in her weekly column, “From the Valley.”
>
BusinessWeek www.businessweek.com Financial Times
Students shine
www.ft.com
The May issue of CIO magazine featured the class of 2001
Mass High-Tech
“sitting on top of the world” with a Sloan rooftop photo of the
www.masshightech.com
class and several in-depth stories about the “most wired class.”
Boston Globe www.boston.com
New York Times story “Business Students Seem to be Keeping
San Francisco Chronicle
Their Cool,” stating that stock market volatility has not altered
www.sfgate.com/chronicle
his plans to start a high-technology venture, a reflection of
Forbes
the prevailing attitude among university students pursuing
www.forbes.com
MBAs today.
Fortune
Michael Schulman, SM ’99, was profiled in a
www.fortune.com
digitalMASS.com article “From Hollywood to high-tech.” As
Red Herring
director of strategy at OpenRatings.com, he is committed to
www.redherring.com
increasing the level of trust in B2B transactions on the web,
New York Times
despite his brushes with fame.
www.nytimes.com
5
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Class of ’00 MBA Homayoun Hatami was featured in a
5
C H A R T I N G
T H E
C O U R S E
O F >
A T
S L O A N ,
L E A D E R S H I P L E A D E R S
L E A R N
B Y
D O I N G
As a student, Homayoun Hatami, SM ’00, made the
Great leaders, some say, are born and not made. Yet, at Sloan, faculty
most of leadership opportunities offered at Sloan,
and students alike believe that even natural leaders can benefit from
serving as coproducer of the eBusiness@MIT Awards and founder of Sloan2000, a professional networking portal.
studying leadership. The idea is to start with a conceptual framework, then give students a wealth of opportunities to carry their skills to a higher plane. It’s an approach that works well: Students and faculty both point to the growing success of annual events like the Latin American and Brazilian Business Conferences, the eBusiness Awards, and the MIT $50K Entrepreneurship Competition. Initiatives like these are not just run-of-the-mill student organizations, either. The students who run them have a knack for luring heavyweight sponsors. And the organizations’ annual events attract high-profile participants as well as national and even global media attention.
6
F E A T U R E
Sloan students might take a leadership-oriented course before, after, or at the same time as they take charge of a student-run organization. In Professor Deborah Ancona’s “Leadership and Change” course, for example, students analyze leadership styles by studying research-based models. Case studies, role plays, and self-assessments help them identify their strengths. Ancona stresses, “We’re not asking
leader. The point is to find the ways that work best for you.” Students who elect “Organizations as Enacted Systems,” taught by Professors Peter Senge and Wanda Orlikowski, learn a systems-oriented view of leadership. The course asks participants to reflect on the “mental models” of themselves and others. Explains David Malpica, SM ’00, who headed last spring’s Latin American Conference, “We learned that we can change a system if we understand the underlying thoughts and actions that are interacting to produce that system. That’s very powerful.”
Teaching leadership? When asked if leadership can truly be taught, Ancona acknowledges that a class won’t “fundamentally change people’s personalities.” But she believes all Sloan students have it in them to be a leader in some way. She adds, “Leadership is about change, about moving a set of people in a new direction. Everyone faces that kind of leadership at one time or another. And everyone can learn to do it better.” Ancona believes that much of what happens in her class is actually coaching, and many of her students agree. Homayoun Hatami, SM ’00, who coproduced last spring’s eBusiness Awards program, describes her as a “trusted leadership coach more than a professor. I plan to talk to her regularly about my leadership challenges, and I know other classmates will, too.” Complementing that coaching is Sloan’s “learning lab” environment that encourages students to take on leadership roles in clubs and initiatives. Sloan’s administration goes out of its way to be
retrospect, she states, “Part of me wishes I’d taken the course first, because I would have done some things differently. For one thing, I wouldn’t have gone in thinking I had to know everything from the start. On the other hand, I wonder if I was ready to take it earlier.” Malpica applied lessons learned in Senge’s and Orlikowski’s course during the planning for the Latin American Conference. He recalls, “We put together a capable group and practiced shared leadership.” He adds that it wasn’t always easy, spending “hours of discussion on what we wanted to achieve as a group.” And Hatami applied a key lesson from his negotiations class to the eBusiness Awards. “We learned that a negotiator should always offer options. Just before the spring break, our supplier told us our brochures wouldn’t be delivered until the day of the event.” Instead of simply telling his team to work harder, however, Hatami asked them, “What are our options?” The end result was to bring the delivery date forward two days. To build on successes like these, Sloan is expanding its leadership program in the coming academic year. Orientation for first-year students will include a leadership module to introduce students to Sloan’s leadership development approach. During the semester, core offerings like “Organizational Processes” will integrate leadership concepts in their coursework. And a three-day Leadership Workshop is being planned for the end of January’s Independent Activity Period. The goal, explains Ancona, is to help all students gain a better understanding of who they are, how they interact with others, and how they are developing as leaders. “We want to begin a process that will continue throughout their careers.”
flexible. It offers guidelines, then steps aside and lets students do the job, often with stunning results. Brian Chu, SM ’01, and Natalie Brain,
http://mitsloan.mit.edu
students to fit a particular mold. There are many ways to be an effective
By Leslie Limon
SM ’01, pulled together last spring’s first annual Massachusetts Tech Tour in just a few short weeks. Chu, who was taking Ancona’s course at the time, recalls, “The ‘listening’ session came at just the right moment.
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It got me thinking, ‘Who do I need to listen to in order to make this a success?’” The course also taught him that he still has work to do to pass the torch and keep the momentum going. Heather Wilding, SM ’00, took the helm of last year’s MIT $50K Entrepreneurship Competition before taking Ancona’s course. In
7
BRIEFS >
T H E
L A T E S T
N E W S
F R O M
S L O A N
Sloan Challenge The third annual MIT Sloan Challenge Competition and fundraiser set all phones and pagers ringing, with students and faculty rising to the challenge of bringing a fictitious product to market — a “smart” umbrella — and raising money for City
Sloan rockets up in rankings
Year Boston. The teams raised $25,000 through team
Sloan was recently ranked fourth in BusinessWeek’s 2000
sponsorships, while testing their business skills with challenges
ranking of the best business schools. This was a dramatic
that ranged from negotiation to marketing to finance. The
jump, as Sloan held the 15th spot in 1998, making it the most
product — the TekWare Umbrella — was supposed to create a
improved of the top 30 schools. BusinessWeek, which
protective wind tunnel around the user, dry instantly, and
has been evaluating business schools since 1988, determines
shrink down to pocket size. Three winners were announced:
its ranking of the top 30 b-schools by surveying the
first place went to the team sponsored by Diamond Technology
customers of MBA programs: graduates and corporate
Partners; second place to a team of first-year MIT Sloan
recruiters. More information on the rankings can be seen at
students; and third place to the team sponsored by Donaldson
www.businessweek.com/bschools/index.html.
Lufkin & Jenrette. Polaroid, Siemens, Silverback, and Turbolinux were also among the list of corporate sponsors. The
$50K Competition
keynote speaker for the day-long event was Clive Smith,
The annual MIT $50K Entrepreneurship Competition, which
president and chief executive officer of New Deal, Inc., which
brings together groups of entrepreneurially minded students
promotes literacy and Internet access for all. The money raised
to compete by developing business plans for potential new
was put toward City Year’s Community Service and Leadership
companies, was held May 10, 2000. EyeGen, whose
Development programs for young adults.
technology is a dye that makes DNA visible to the naked eye, was the first-place recipient. The two runners-up were Centrata and Maza Networks. EyeGen received $30,000 and each runner-up received $10,000. The finalists were selected from a field of 206 entrants and gave 10-minute presentations on their companies before a group of venture capitalists, successful entrepreneurs, judges, Competition alumni, and students. In its 11-year history, the Competition has spawned more than 50 companies, with an estimated fair market value of greater than $10 billion in terms of external assessment and acquisition prices.
Sloan goes wireless With the start of classes this fall, Sloan took yet another trademark step in innovation by becoming one of the first bschools in the world to go wireless. The School activated a Participants in the 2000 Sloan Challenge attempt to bring the fictitious “smart umbrella” to market. Proceeds from the Challenge went to City Year Boston’s Community Service and Leadership Development programs.
wireless access network that enables students, faculty, and staff to connect through their laptops to the MIT wired network and the Internet from anywhere on the Sloan campus. With more convenient access to the School’s backbone network and potentially time-sensitive information, the wireless access network puts Sloan one step closer to the greater wireless connectivity that has become so commonplace in Europe and Asia.
8
Good news from the CDO
Robert S. Gibbons, a Sloan distinguished professor of
Placement statistics for the Class of 2000 collected by the
management, has accepted an invitation to join the Board of
Career Development Office support that Sloan grads are
Trustees at the Center for Advanced Study in the Behavioral
indeed in demand. The average base salary by industry ranged
Sciences at Stanford University.
from $78,741 to $110,909, with average signing bonuses by
Georgia Perakis, a Sloan assistant professor of operations
industry ranging from $18,000 to $40,833. Many grads joined
research, has received a Faculty Early Career Development
consulting (27 percent) or investment banking firms (15
(CAREER) Award from the National Science Foundation.
percent), and more than 30 percent of the grads joined eBusiness, software, computer, or telecommunications
For more information on these and other faculty honors,
companies — core businesses of the New Economy.
please visit the web site at http://mitsloan.mit.edu/facstaff/
For more information on Sloan grads in the New
facultyhonors.html
Economy, visit the web site at http://mitsloan. mit.edu/news/ archives/2000/students_1000.html.
Siemens CEO named to Sloan faculty
HIGHLIGHTS FROM THE FALL 2000
Gerhard Schulmeyer, president and chief executive officer of
MIT SLOAN MANAGEMENT REVIEW
to the faculty of MIT Sloan as Professor of Practice, effective
Trusting Merchants on the Web
July 1, 2000. Schulmeyer continues in his role at Siemens
Would you buy a car from a web site? If the
while he is teaching at the Sloan School. Schulmeyer earned
site presents unbiased information about
an MS in Management in 1974 from the Sloan School, and
competitive products and features a “virtual
has since been a guest lecturer at Sloan on international
advisor” to help you make decisions, the
management and organizational change issues. From 1997 to
answer is probably “yes.” So suggests research
June 2000, he served on the Corporate Board of MIT and also
appearing in the Fall 2000 issue of the MIT
on the MIT Visiting Committees for Mathematics and
Sloan Management Review.
Aeronautics.
http://mitsloan.mit.edu
Siemens Corporation, has been named by the MIT Corporation
Glen L. Urban, codirector of the Sloan School’s Center for eBusiness@MIT, and his
Faculty honors
coauthors found that more than 75% of
Professor Arnie Barnett was chosen by the Operational
visitors to an experimental web site called
Research Society to present the prestigious Blackett Memorial
“Truck Town” trusted a software-driven
Lecture in London on November 27, 2000.
persona that served as an unbiased expert
Professor John Little was chosen as the recipient of the
more than the dealer from whom they last
INFORMS Expository Writing Award. This award is given
bought a vehicle (“Placing Trust at the Center
annually to an author whose publications in operations
of Your Internet Strategy” by Glen L. Urban,
research and management sciences have set an exemplary
Fareena Sultan, and William Qualls). The Fall 2000 issue also includes articles
A Sloan faculty team of Wanda Orlikowski, Tom Malone,
on the management techniques of the open-
JoAnne Yates, Peter Weill, and Erik Brynjolfsson has been
source software movement, how companies
awarded a major NSF Information Technology Research
can increase business by redefining their
Award for their project, “Social and Economic Implications of
markets, best practices in leadership
Information Technology: What Is Really Happening?”. The
development, setting prices for global clients,
five-year, $5.2 million award is part of the NSF’s new $90
knowledge management at Nucor Steel, and
million Information Technology Research (ITR) initiative.
how Japanese automakers improve the
Steve Eppinger, a Sloan associate professor of management,
>>
standard of exposition.
performance of their U.S. suppliers.
has been named codirector of the Center for Innovation in Product Development. 9
GLOBALIZATION >
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L O O K
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S L O A N
A C T I V I T I E S
W O R L D W I D E
13th Annual Summer Gathering in Northern California Continuing a wonderful tradition, the Annual Summer Gathering in Northern California was held in August. The event had its largest turnout ever. Over 130 Sloan alumni, students, and prospective students gathered at the home of
Alumni Leadership Conference a great success
Barbara Gee, SM ’86, in Menlo Park to network and catch up
On September 14, 2000, the officers of many Sloan alumni
on the goings on at Sloan. A special thanks goes to Barbara
clubs converged on campus at the second Alumni Leadership
for hosting this event for the past nine years.
Conference (ALC). Intended to provide club leaders with resources and information for the betterment of the alumni clubs, the ALC was also an opportunity for club leaders and Reunion and Career Development Volunteers to exchange ideas and experiences, as well as interact with current Sloan faculty and staff. Paul Stick, SM ’95, received the Sloan Alumni Service Award, while the Sloan Club of Boston
!
S A V E
T H E
D A T E
Reunion 2001 June 7-10, 2001 Class of ’61, ’66, ’71, ’76, ’81, ’86, ’91, ’96, 2000 & all MOT classes
achieved the Sloan Club Award.
“What’s Hot and What’s Not” This fall, Ken Morse, senior lecturer and managing director of the MIT Entrepreneurship Center, met with the Sloan and MIT Clubs of Chicago and Austin for a presentation entitled, “The Spirit of High-Tech Entrepreneurship at MIT: What’s Hot and
Reunion 2001 will be here before you know it! Please mark your calendar for a chance to reconnect with classmates and Sloan. Activities will include: > Tech Night at the Pops > Consumption Functions > Back to the Classroom with Sloan Faculty > Career Networking Breakfast > Class-Specific Dinners > Class-Specific Outings > MOT Anniversary Celebration
What’s Not.” The program explored the School’s focus on high-tech initiatives and pondered the question of whether entrepreneurship can be taught.
Sloan grad competes in Sydney Taking his experience on the Charles River international, rower Don Smith, SM ’99, represented the U.S. in the Sydney Olympics, competing in the single-skull division. Previously a competitor in the eight-man crew division, Smith made the change to single skull just 13 days before the 2000 Olympic trials. Although he didn’t medal in Sydney, his list of accomplishments in rowing have been numerous, including two bronze medals at the 1994 Rowing World Championships,
If you would like to participate in Reunion planning, please contact Kristen Murphy at 617-258-5832 or
[email protected]. If you would like to help with the Reunion Giving Campaign, please contact Jessica Stanton at 617-253-2556 or
[email protected]. In order to personalize your Reunion and make it a success, involvement from your class is crucial. We look forward to seeing you!
10
as well as gold medals at the 1994 Goodwill Games, 1995 Pan American Games, and the 1993 and 1994 U.S. National Championships. In Sloan’s backyard, the Head of the Charles Regatta, he earned the Championship Single in 1999. He was also a member of the 1996 Olympic Team, placing fifth in the eight-man crew division.
Left: Alumni catch up over cocktails at the C-function Friday night.
Reunion 2000 breaks records Sloan celebrated another outstanding reunion this past June 1-4, 2000. A record-breaking 530 alumni and guests returned to campus to celebrate all the amazing changes that have occurred at the Sloan School since their student days. In honor of their reunion, these classes raised over $2,397,054, which classes were busy breaking records, they were also having fun. Reunion classes kicked off the weekend in traditional Sloan style with a Consumption Function in the Tang Foyer on Friday evening. Although the rain came down in sheets, it couldn’t keep the graduates away; everyone enjoyed a fun evening of socializing. On Saturday, alumni began the day with a networking breakfast, then went on to Back to the Classroom sessions where they heard from many of their favorite faculty. The sessions were broken up by a luncheon with Dean Richard Schmalensee, who gave a State of the School address. Finally, Saturday evening boasted a night of
http://mitsloan.mit.edu
far exceeded previous Reunion Giving totals. But while these
dining and dancing as classes celebrated their own intimate class dinners at various Boston and Cambridge restaurant locations. Although Reunion Weekend was chock-full of activities, Saturday luncheon.
alumni had plenty of opportunity to catch up with old friends, make new ones, and reconnect with Sloan. Look for details on the upcoming reunion — to be held June 7-10, 2000 — in
Bottom: Professor Ed Roberts discusses Angels,
future issues of ROI and on the Sloan web site.
Incubators and Entrpreneurs at a Back to the Classroom session.
11
>>
Middle: Dean Schmalensee mingles with alumni at the
Over the course of the three-day Reunion, alumni enjoyed reconnecting, socializing, and learning the latest goings on at Sloan.
We’re looking for committed alumni... to help us congratulate and welcome newly admitted students. Many recently admitted students have questions about Sloan, choosing between Sloan and another program, or the opportunities that a Sloan MBA degree affords — and they want to hear the opinions of alumni. Please help us welcome our new admits! The Sloan MBA Program Office is looking for Sloan alumni volunteers to call newly admitted students after final decisions are mailed in February and April. Via email, volunteers will be sent the personal and contact information of one or more newly admitted candidates living in the same geographic location. The calls are a great way to welcome new students into the Sloan community and tell them how Sloan will change their lives. If you would like to participate, please visit the “What’s New” section of the Sloan Alumni website (http://mitsloan.mit.edu/alum/) and fill out the sign-up form. Alternatively, you may contact Angel Navedo, assistant director of MBA Admissions, by email or phone (
[email protected]; 617-253-3018). We sincerely hope you will participate, and thank you for your ongoing support and involvement!
12
INTELLECTUAL CAPITAL >
S P O T L I G H T
O N
S L O A N
A U T H O R S
description and evaluation of the first three years’ experience Sloan Senior Lecturer Denny Ellerman, Professor of Economics
with the U.S. Acid Rain Program. Markets for Clean Air
and Management Paul Joskow, and Sloan Dean Richard
analyzes the behavior and performance of the emissions
Schmalensee have collaborated with coauthors Juan-Pablo
permits market and provides the historical and political
Montero and Elizabeth M. Bailey on Markets for Clean Air,
contexts in which the program developed.
The U.S. Acid Rain Program (Cambridge University Press, June 2000). The book provides a comprehensive, in-depth
EXECUTIVE SUMMARIES >
C L A S S
N O T E S :
H O N O R S
A N D
A P P O I N T M E N T S
Jay Wetzel, SM ’73, of General Motors has been inducted into the National Academy of Engineering. Richard Grueter, SM ’78, was made partner at PriceWaterhouseCoopers, and is an audit partner in a Boston-based investment-management
new integrated communication provider called Hotwire
Tezuka, SM ’91, has moved to South Bend, IN, to assume the
Services Inc., and now holds the position of senior vice
position of assistant to the CEO at National Steel Corp. Eric
president and COO. Gary Merriman, SM ’92, has been
Friedman, SM ’98, cofounded a startup called eSkill, which
promoted to president of exploration products in the Americas
provides “off-the-shelf” and customized solutions for
at Conoco. Millard Battles Jr., SM ’69, earned an honorary
computer and Web-based knowledge testing. Daniel Carroll,
PhD from Seattle University. John Mazzarino, SM ’77,
SM ’77, continues as chief operating officer of business
founded Cherokee Investment Partners II LLP with two
communications systems at Lucent Technologies and has been
partners. It has since become the largest private equity fund in
elected to the board of directors of Pall Corporation. Steven
North Carolina and the only fund in the United States that
Marcereau, SM ’80, retired early from Lockheed-Martin on
focuses on environmentally contaminated assets. Mark
June 30, 1999, in order to go into full-time ministry as the
Edwards, SM ’79, founded iQuantic Inc. seven years ago.
director of financial and supportive services at First Baptist
Based in San Francisco, it has grown to be the leading
Church Windermere in Florida. Burton Nanus, SM ’59,
compensation consulting firm for new economy organizations
published a book about nonprofit leadership called Leaders
with five offices around the country.
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practice. Rear Adm. Jay Cohen, SM ’81, assumed duties as the director of the U.S. Navy’s Y2K Project Office. Hiroyuki
Who Make A Difference. Mark Emery, SM ’91, cofounded a
>>
Learn more about these alumni and others in class notes on the Sloan web site below or check out Technology Review.
http://mitsloan.mit.edu/alum/classnotes
13
RESOURCE DEVELOPMENT
> Fundraising
U P D A T E
MIT Sloan has raised more than $85 million as part of MIT’s $1.5 billion Capital Campaign, which was launched in November 1999. Sloan is raising funds for two priority projects: $55 million to fund a new facility for the Sloan About these generous commitments to Sloan, Dick
Community, and $25 million to expand the MIT Entrepreneurship Center based at Sloan. Recent leadership gifts include a $1.5 million contribution from J. Spencer Standish, SM ’45, and $1.5 million from Judy Lewent, SM ’72, both in support of the new facility; $1 million from Jack Tang, SB ’49, to support Sloan’s work in China; and $2 million from Joaquin
Schmalensee commented, “This is a very special time for MIT and for Sloan. Our alumni, with extraordinary vision and dedication, are enabling us to seize the day and to lay the necessary foundation for continuing excellence for many years to come. We are very grateful indeed for their loyalty and support.”
Bacardi, SM ’98, to support a faculty chair.
Sloan plans to raise at least $180 million for important educational, research, and other projects through June 30, 2004. The progress as of October 16, 2000 is highlighted below.
CAMPAIGN TOTALS TO MIT
SLOAN
as of 10.16.00
$ 60
$ 50
$ 40
i n
mil li o n s
$53,179,378
dollars
$ 30
$ 20 $15,277,114
$15,997,841
$ 10
$6,692,025
pl edge ba lances
ca sh fy 98
14
fy 99
fy 00
fy 01
F E A T U R E
E - L A B
T E A C H E S
O N E - M I N U T E
Launching a successful high-tech business takes more than cash and a good idea. An MIT Sloan Entrepreneurship Lab (E-Lab) course teaches
E L E V A T O R O T H E R O V E R
S P E E C H
T A C T I C S
A N D T O
W I N
P R O S P E C T S
that simply knowing how to navigate cocktail parties, trade shows, and other events can provide entrepreneurs with the leading edge. Nearly 130 MIT students take the course each semester to work on missioncritical issues with successful, high-tech startups. Senior Lecturer Ken Morse, managing director of the MIT Entrepreneurship Center and six-time entrepreneur, teaches the class
Senior Lecturer Ken Morse heeds his own advice and
with fellow entrepreneur John Preston, senior lecturer and CEO of
keeps close to the food. According to Morse, full
Quantum Catalytics. Preston and Morse offer several ways to target
stomachs make for high endorphin levels and a
prospects, garner invitations to cocktail parties, and make a pitch to
greater likelihood that your prospect will remember
the CEOs and big names of the high-tech world.
your conversation.
15
>>
>
http://mitsloan.mit.edu
“Going up?”
Find the bar everyone goes to after the trade show and be there Scout the bar for the best table and invite specific people to meet you
Stand near the food, not the bar “You stand here,” says Morse, as he marks an “X” near the food on a diagram of a cocktail party layout, much like a football coach going over a game plan. The food table has a clear sight line to the door to see who’s coming and going. “This is a great place to have serious conversations that people will remember, because their endorphin levels will be higher.”
Speak briefly and tantalizingly The E-Lab class spends time on what is known as the “elevator speech” — how to sum up the value of your business idea in the time it takes to go from floor to floor on an elevator. Morse offers this approach, “‘Would you be willing to speak with me for one minute if I could cut your time to market by six months and improve your bottom line by $10 million?’ Who doesn’t have a minute? It works, but you have to look sharp and be credible.”
Focus on what people tell you, not on what you tell them You’ll be most successful if you ask questions about what’s important to them, not you. “People are much more interested in their life story than yours. So save your breath and draw them out,” Morse suggests.
Be genuinely interested, and smile According to Morse, you can’t fake sincerity. “The best way to prepare for a meeting is to be genuinely interested. Research indicates that things go better if you smile.” Because your startup is run on a shoestring, you can’t afford a booth, a luxury guest suite, or hosting your own party. You can still stand out at a trade show, Preston and Morse say, and “never spend your own money.”
there. Morse suggests, “Tell the waiter, ‘We are going to be meeting some really important people.’”
Get invited to the big parties Chances are the major speakers will be attending them, although only for a short time. Once you’ve landed an invitation, say to prospects, “I’ll meet you next to the shrimp,” Morse says. “That serves three purposes: It enhances your stature, improves your network, and reduces your food budget.”
Be selective about whom you meet Avoid the people who wander trade shows carrying bags and gathering literature. “People who are interested in paper, rather than people, don’t buy,” Morse says.
Know your prospects; do research Identify and target the people you want to meet at a show. The best way, Morse suggests, is to “read the program from cover to cover.” If you set your sights on a CEO, use your alumni network to find someone who works at the company for more background.
Talk to speakers before their speeches The best time to get the attention of a top-name speaker is before the speech, not afterward, when audience members swarm the stage.
Have someone introduce you The CEO and the moment have arrived. Teamwork comes in handy here. Have a colleague introduce you, providing several interesting notes that might interest the speaker. Morse suggests saying, “‘You should meet John Preston, the leading expert on this topic.’ This improves your stature, because you’re being introduced by someone else as an expert.” Practicing these strategies might not always guarantee success and plush deals, Morse cautions. They can, however, increase the likelihood of your being remembered. “We’re talking about influencing the probabilities,” he says. “Remember to smile, do your homework, practice teamwork, be sincerely interested, be well prepared when you make your move, and enjoy the shrimp.”
By Mary Schaefer
16
NEXT STEPS >
S T A Y
C O N N E C T E D
T O
S L O A N
Center for eBusiness@MIT http://ebusiness.mit.edu
MIT Sloan eBusiness Awards
S L O A N
M A N A G E M E N T
R E V I E W
http://www.mitawards.org/ Top-selling SMR Reprints
MIT 50K Entrepreneurship Contest http://50k.mit.edu/
> Reprint #4131 Five Steps to a Dot-Com Strategy: How To Find
Sloan 2000 http://www.sloan2000.com
Webwatch: News features archive http://mitsloan.mit.edu/news/archives/features.html
Your Footing on the Web N. Venkatraman > Reprint #3211 The Leader’s New Work: Building Learning Organizations
Reunion 2000
Peter M. Senge
http://mitsloan.mit.edu/alum/reunion2000 > Reprint #4023
Class notes
An Incremental Process for Software
http://mitsloan.mit.edu/alum/classnotes/main.html
Implementation Robert G. Fichman and Scott A. Moses
Faculty honors http://mitsloan.mit.edu/facstaff/facultyhonors
> Reprint #4121 How to Be a CEO for the Information Age
S L O A N
C O N T A C T S
Alumni Relations Office
Michael J. Earl and David F. Feeney > Reprint #3943
617-253-1557 voice; 617-253-2030 fax;
The Processes of Organization and Management
email
[email protected]
David A. Garvin
http://mitsloan.mit.edu/alum > Address changes
> Reprint #4135
> Career services
Technology Is Not Enough: Improving
> Clubs and regional representatives
Performance by Building Organizational Memory
> Email forwarding
Rob Cross and Lloyd Baird
> Events > Fundraising/annual fund > Online directory > Sloan Style memorabilia > Travel programs
MBA Admissions http://mitsloan.mit.edu/mba
Executive Education http://mitsloan.mit.edu/execed
To order reprints of MIT Sloan Management Review articles, call 877-727-7170 (toll-free), or 617-2537170; fax to 617-258-9739; or email
[email protected].
UPCOMING EVENTS
D E C E M B E R
M A R C H
Dean Schmalensee to address the Sloan Club of Seattle
Student International Trips
December 13
March 21-April 1 Pan Arab Alumni Conference
J A N U A R Y
March 24-26
Northern California Student Reception
Career Event with Ken Gordon, SM ’69, Washington, DC
January 9
TBD
F E B R U A R Y
A P R I L
Pre-Reunion Event in New York City
Pre-Reunion Event in N. California
TBD
TBD
J U N E
Sloan Reunion June 7-10 MOT 20th Anniversary Celebration June 7-10
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