Mitsloan Celebrating Our Past, Inventing the Future Mitsloan Celebrating Our Past, Inventing the Future
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MITSloan Celebrating Our Past, Inventing The Future MITSloan Celebrating Our Past, Inventing The Future LR / TOM Contents MIT Sloan: Celebrating Our Past, Inventing The Future © 2014 MIT Sloan First published in 2014 by Third Millennium Publishing Limited, Foreword 6 a subsidiary of Third Millennium Information Limited in conjunction with MIT Sloan. Introduction 8 Boston • London Third Millennium Publishing Limited 2–5 Benjamin Street, London United Kingdom EC1M 5QL 1. Origins of Management Education 10 www.tmiltd.com ISBN: 978 1 908990 00 6 2. Economics, Finance, and Accounting 34 All rights reserved. No part of this publication may be reproduced in any format whatsoever without the written permission of the 3. Management Science 58 publishers and of the copyright owner or owners concerned. Library of Congress Control Number: xxxxxxxxx 4. People and Organizations 82 Editor: Tracey Palmer Managing editor: Susan Millership 5. Entrepreneurship and Innovation 106 Lead writers: Catherine Canney, Michelle Choate, Dave Demerjian, André Guillemin, Tracey Palmer, Kathleen Thurston-Lightly, 6. MIT Sloan in the World 128 Robert Thurston-Lighty, Natasha Waibel Copy editing: Rowena Anketell 7. Building Community 152 Design: Matthew Wilson Production: Bonnie Murray Proofreading: Neil Burkey Indexing: Ian Craine Appendix 192 Reprographics by Asia Graphic Printing Ltd, Hong Kong LR / TOM List of Sponsors 194 Printed and bound in China by 1010 Printing International Limited on acid free paper from sustainable forestry. Index 202 Set in Benton Sans on 95lb/140gsm matte art Acknowledgments 208 Foreword 6 7 Introduction 8 9 Origins of Management Education 1 The origin and early evolution of management education at the Massachusetts Institute of Technology is a story of extraordinary human character. It is also a story of pioneering ideas, not necessarily lofty, and certainly not devoid of practical purpose. The story’s arc, and its importance, arise from the way specific elements of character were applied to certain ideas, during fleeting moments of great opportunity, inflection, and need. While most business schools focus on current practices and making them better, MIT Sloan has always looked to what’s next—inventing the future. A community of thinkers inclined to create, with the courage to innovate, and the inspiration to lead. And because the School has always been deeply connected to its larger educational institution, the Massachusetts Institute of Technology, management is approached with a scientific rigor and fact-based examination—a solid base for the bold new ideas that sprung out of MIT Sloan’s entrepreneurial culture. This is the story of how Course XV and management education came to be at MIT. Although many talented and dedicated men and women played important roles, this early part of MIT Sloan’s history is best told through the stories of six visionary men. In turn, these forward-thinking leaders demonstrated audacity, fortitude, adaptability, inventive genius, and charisma in service of mission. And, as it happened, they offered these strengths to MIT exactly when the Institute needed them. William Barton Rogers and a plan for “a Polytechnic School in Boston” A geologist and physicist by training, William Barton Rogers lived during a new age of industrialization. In the mid-1800s, he would have witnessed advances in steel, railroads, “The Institute was established for Left: MIT School of the advancement, Industrial Management faculty and administration, development and (l–r) Robert Gregory, Jay Forrester, Douglass practical application of Brown, Penn Brooks, science in connection Gerald Tallman, Elting Morison, Gregory Chow, with arts, agriculture, Howard Johnson, 1955. manufactures, and Right: William Barton Rogers served as MIT commerce…” president from 1862–70, then again from 1879–81. –From MIT’s charter, 1861 MIT Sloan: Celebrating Our Past, Inventing The Future Origins of Management Education / 01 “Organized the School! Fifteen Francis Amasa Walker and political economy students entered. May not this One of Rogers’ most significant contributions to MIT and management education occurred in 1881, when he recruited prove a memorable day!” a professor from Yale’s Sheffield Scientific School to be MIT’s –William Barton Rogers, February 20, 1865, new president. A Civil War brigadier general, Francis Amasa written in his diary on the first day of MIT classes Walker was a second-generation economist, and internationally recognized authority on statistics and political economy. The political economy lectures he gave in the Science & Literature Course attracted a large following. In 1882, Science & Literature students would use their own hands to test theories and make was renamed General Studies and given its own course— discoveries. Learning and doing were linked in his mind, and Course IX. Walker led the new department and expanded its would become a driving principle of MIT for 150 years. Mens et offerings in history, economics, language, and literature. With Manus—Mind and Hand—the Institute’s motto, is as true today references to “economics,” “banking,” “trade,” and “business,” as it was more than a century and a half ago. this description of Course IX, from the 1892–93 MIT Catalog, On April 10, 1861, the Massachusetts legislature authorized begins to sound a lot like Course XV: a charter officially creating the Massachusetts Institute of Technology. Two days later, the Civil War began. Rogers’ school “The course is designed especially for those students who steamships, oil and gas, and electricity. His life would have been would have to wait. Massachusetts Governor John Andrew wish to secure an education based upon scientific study and altered forever by a record number of new inventions, including suggested that Rogers start his school at Harvard instead, MIT finished construction Industrial Science curriculum included a four-year sequence experiment but including a larger amount of philosophical study the light bulb, telephone, sewing machine, and typewriter. avoiding duplication of courses offered at Harvard’s Lawrence of the building that called Science & Literature. All students were required to take in history, economics, language, and literature than would be would later be named From America’s creation in 1776 to 1860, the United States Scientific School. Rogers was stanchly opposed. On February some general studies classes in this sequence, emphasizing consistent with the technical requirements of the other courses. the Rogers Building, 20, 1865, nearly 20 years after Rogers’ letter to his brother, government issued about 36,000 patents, but from 1860 to located on Boylston economics, English, history, law, and modern languages. It It is adapted to the needs of those who expect to engage in trade, Roger’s 1846 letter to 1890, it issued a staggering 440,000. These new products opened its doors in the Back Bay with 15 students and six Street between Berkeley was in this general studies core that the seeds of management banking, or manufacturing … It is particularly intended for those his brother describing and Clarendon Streets and procedures revolutionized industry and fueled a period instructors. The first regular session began in October of that “a polytechnic school in education at the Institute first took root. who seek administrative positions in business …” in Boston’s Back Bay, of unprecedented economic growth in the United States, year, with 72 students. From the beginning, MIT’s School of Boston”. in 1866. cementing the country’s status as a leading global industrial Davis R. Dewey and Course XV power. In this heady gilded age, Rogers formed a visionary In 1886 Walker hired a young economist from Johns Hopkins goal—“a Polytechnic School in Boston.” In a letter he wrote named Davis R. Dewey. If there is one man responsible for to his brother in 1846, Rogers outlined a bold plan. He spoke the rise of management education at MIT it is “Dr. Dewey,” about the need for a school relevant to the times and to the as he was affectionately known. With his arrival, MIT nation’s needs, “conducive to the progress of invention” and added an increasing number of economics, business, and “the development of an enlightened industry.” The idea was administration-related classes. One of the most important revolutionary. In a clear dissent from the common view of was political economy. The class covered a variety of topics higher education of his day, Rogers believed that in an industrial over time, but Dewey made sure its content was always timely society, science and technology were legitimate foundations of and responsive to the needs of students and industry— just higher education.Teaching and research with relevance to the as William Barton Rogers would have wanted. Dewey was practical world was his guiding concept. Rogers called it “exact not only an effective administrator but also a respected instruction in useful knowledge.” Rogers’ other novel idea, of scholar. He wrote prolifically, consulted widely, and remained linking science and business, made perfect sense in this era. President Francis Amasa a recognized leader in his profession, most notably as And the methodology for teaching he proposed—a departure HTTP:// Walker’s initiatives president of the American Economic Association. Dewey was from the strict lecture format devoted to classical studies— MUSEUM.MIT. were prophesies of also known as an excellent teacher, well loved by students LR what education in the was another innovation. Rogers envisioned