The Golden Passport

by Duff McDonald

  20Stuart Crainer and Des Dearlove, Gravy Training: Inside the Business of Business Schools (San Francisco: Jossey-Bass, 1999), p. 76.

  21Ibid., p. 4.

  Chapter 18: Temporary Support of the Working Man

  1http://nyti.ms/1VebKOt.

  2Jeffrey L. Cruikshank, A Delicate Experiment: The Harvard Business School 1908–1945 (Boston: Harvard Business Review Press, 1987), p. 269.

  3http://www.law.harvard.edu/programs/lwp/htup/htup08/2008HTUPArticle.pdf.

  4Thomas Frank, One Market Under God: Extreme Capitalism, Market Populism, and the End of Economic Democracy (New York: Doubleday, 2000), p. 182.

  5http://www.law.harvard.edu/programs/lwp/htup/htup08/2008HTUPArticle.pdf.

  6Cruikshank, A Delicate Experiment, p. 269.

  7http://www.law.harvard.edu/programs/lwp/htup/htup08/2008HTUPArticle.pdf.

  8John Trumpbour, How Harvard Rules: Reason in the Service of Empire (Boston: South End Press, 1999), p. 165.

  9Donald David, letter to the president of Harvard, 1943–44. Report of the President of Harvard College and reports of departments, p. 209.

  10Cruikshank, A Delicate Experiment, p. 269.

  11George P. Baker, letter to the president of Harvard, 1968–69. Report of the President of Harvard College and reports of departments, p. 294.

  12John H. McArthur, letter to the president of Harvard, 1980–81. Report of the President of Harvard College and reports of departments, p. 321.

  13“Why So High?,” Financial World, April 3–16, 1985, p. 36.

  14Robert D. Putnam, Bowling Alone: The Collapse and Revival of American Community (New York: Touchstone Books, 2001), p. 81.

  15Peter J. Pestillo, “Can the Unions Meet the Needs of a ‘New’ Workforce?,” Monthly Labor Review 102 (February 1979): 33.

  16http://www.law.harvard.edu/programs/lwp/htup/htup08/2008HTUPArticle.pdf.

  17David W. Ewing, Inside the Harvard Business School (New York: Crown, 1990), p. 173.

  18Ibid.

  19Frank, One Market Under God, p. 8.

  20Joseph E. Stiglitz, The Price of Inequality: How Today’s Divided Society Endangers Our Future (New York: Norton, 2012), p. 65.

  21http://www.epi.org/publication/ceo-pay-continues-to-rise/.

  22http://www.nytimes.com/2015/02/19/opinion/nicholas-kristof-the-cost-of-a-decline-in-unions.html?smid=nytcore-ipad-share&smprod=nytcore-ipad&_r=0.

  Chapter 19: The Class the Dollars Fell On: The ’49ers

  1Laurence Shames, The Big Time: Harvard Business School’s Most Successful Class—and How It Shaped America (New York: HarperCollins, 1986), p. 202.

  2Ibid., p. 34.

  3Ibid., p. 13.

  4http://institutionalmemory.hbs.edu/timeline/1948/98_of_students_now_finish_twoyear_program_in_contrast_to_56.html.

  5Donald David, letter to the president of Harvard, 1946–47, p. 472.

  6Shames, The Big Time, p. 19.

  7David Callahan, Kindred Spirits: Harvard Business School’s Extraordinary Class of 1949 and How They Transformed American Business (Hoboken, NJ: Wiley, 2002), p. 26.

  8Shames, The Big Time, p. 9.

  9Interview with author, August 2014.

  10Shames, The Big Time, p. 23.

  11Ibid., p. 7.

  12Ibid., p. 40.

  13Ibid., p. 43.

  14Callahan, Kindred Spirits, p. 53.

  15Shames, The Big Time, p. 79.

  16H. John Steinbreder, “Taking Chances at J&J,” Fortune, June 6, 1988, p. 60.

  17Shames, The Big Time, p. 110.

  18Ibid., p. 106.

  19Callahan, Kindred Spirits, p. 80.

  20Conrad Waligorski, John Kenneth Galbraith: The Economist as Political Theorist (Lanham, MD: Rowman & Littlefield, 2006), p. 53.

  21Roger P. Sonnabend, “The American Businessman: A Modern Revolutionary,” Vital Speeches of the Day 34 (August 1, 1968): 638.

  22Roger P. Sonnabend, “Why I’m Voting for McGovern,” Nation’s Business, October 1972, p. 32.

  23Interview with author, May 2015.

  24Interview with author, May 2015.

  25Callahan, Kindred Spirits, p. 107.

  Chapter 20: A Decade in Review: 1940–1949

  1Donald David, letter to the president of Harvard, 1945–46, p. 387.

  2Laurence Shames, The Big Time: Harvard Business School’s Most Successful Class—and How It Shaped America (New York: HarperCollins, 1986), p. 15.

  3Donald David, letter to the president of Harvard, 1943–44, p. 196.

  4Melvin Thomas Copeland, And Mark an Era: The Story of the Harvard Business School (Boston: Little, Brown, 1958), p. 125.

  5Shames, The Big Time, p. 24.

  6David W. Ewing, Inside the Harvard Business School (New York: Crown, 1990), p. 105.

  7David Callahan, Kindred Spirits: Harvard Business School’s Extraordinary Class of 1949 and How They Transformed American Business (Hoboken, NJ: Wiley, 2002), p. 44.

  8Interview with author, May 2015.

  9Donald David, letter to the president of Harvard, 1946–47. Report of the President of Harvard College and reports of departments, p. 478.

  10Shames, The Big Time, p. 21.

  11John A. Byrne, The Whiz Kids: The Founding Fathers of American Business—and the Legacy They Left Us (New York: Doubleday Business, 1993), p. 8.

  12http://institutionalmemory.hbs.edu/timeline/1945/faculty_waives_requirement_of_bachelor_s_degree_for_returning_veterans.html.

  13Shames, The Big Time, p. 41.

  14Interview with author, May 2015.

  15Donald David, letter to the president of Harvard, 1947–48. Report of the President of Harvard College and reports of departments, p. 475.

  16Shames, The Big Time, p. 103.

  Chapter 21: Organization Man and the Corporate Cocoon

  1J. A. Noakes, “Official Frames in Social Movement Theory: The FBI, HUAC, and the Communist Threat in Hollywood,” Sociological Quarterly 41 (2000): 657–80.

  2Murray Schumach, The Face on the Cutting Room Floor: The Story of Movie and Television Censorship (New York: Morrow, 1964), p. 139.

  3Peter F. Drucker, The Future of Industrial Man (New Brunswick, NJ: Transaction, 1995), p. 76.

  4John Micklethwait and Adrian Wooldridge, The Company: A Short History of a Revolutionary Idea (New York: Modern Library, 2005), p. 117.

  5Peter F. Drucker, The Practice of Management (New York: HarperBusiness, 2006), p. 90.

  6Rakesh Khurana, From Higher Aims to Hired Hands: The Social Transformation of American Business Schools and the Unfulfilled Promise of Management as a Profession (Princeton, NJ: Princeton University Press, 2010), p. 208.

  7Bert Spector, “The Man in the Gray Flannel Suit in the Executive Suite,” Journal of Management History 14, no. 1 (2008): 87–104.

  8Martin Bower, ed., The Development of Executive Leadership (Cambridge, MA: Harvard University Press, 1949), p. v.

  9William H. Whyte, The Organization Man (Philadelphia: University of Pennsylvania Press, 2002), p. 276.

  10“Harvard MBAs of ’49 Assess Their 20 Years,” BusinessWeek, June 14, 1969, p. 62.

  11David Riesman, Nathan Glazer, and Reuel Denney, The Lonely Crowd: A Study of the Changing American Character, abridged by the authors (Garden City, NY: Doubleday, 1953), p. 127.

  12Ibid.

  13Spector, “The Man in the Gray Flannel Suit in the Executive Suite,” p. 99.

  14Jack Beatty, Colossus: How the Corporation Changed America (New York: Crown, 2002), p. 339.

  15J.-C. Spender, “Business Schools and the Crisis,” April 2009.

  Chapter 22: The Power Elite

  1Dennis H. Wrong, “The Power Elite, by C. Wright Mills.” Commentary, accessed September 30, 2015, https://www.commentarymagazine.com/articles/the-power-elite-by-c-wright-mills/.

  2C. Wright Mills and Alan Wolfe, The Power Elite (New York: Oxford University Press, 2000), p. 121.

  3Ibid., p. 123.

  4Ibid., p. 100.

  5Ibid., p. 119.

/>   6Ibid., p. 143.

  7Alecia Swasy, Soap Opera : The Inside Story of Procter & Gamble (New York: Simon & Schuster, 1994), p. 7.

  8http://timesmachine.nytimes.com/timesmachine/1957/09/08/121465383.html.

  9http://www.nytimes.com/1983/11/28/business/advertising-ad-hall-of-fame-picks-4-more-industry-giants.html.

  10David Callahan, Kindred Spirits: Harvard Business School’s Extraordinary Class of 1949 and How They Transformed American Business (Hoboken, NJ: Wiley, 2002), p. 120.

  11http://timesmachine.nytimes.com/timesmachine/1958/07/13/91396053.html?pageNumber=118.

  12Allen Kaufman, Lawrence Zacharias, and Marvin Karson, Managers vs. Owners: The Struggle for Corporate Control in American Democracy (New York: Oxford University Press, 1995), p. 117.

  13http://timesmachine.nytimes.com/timesmachine/1970/10/14/78197876.html?pageNumber=64.

  14Erica Gies, “Procter & Gamble Touts ‘Win-Win’ of Cutting Phosphates in All Laundry Soaps,” Guardian, January 27, 2014, http://www.theguardian.com/sustainable-business/proctor-gamble-remove-phosphates-laundry-soap.

  15http://timesmachine.nytimes.com/timesmachine/1968/12/26/76925048.html?pageNumber=36.

  16Rakesh Khurana, From Higher Aims to Hired Hands: The Social Transformation of American Business Schools and the Unfulfilled Promise of Management as a Profession (Princeton, NJ: Princeton University Press, 2010), p. 338.

  17Ken Starkey and Nick Tiratsoo, The Business School and the Bottom Line (Cambridge, U.K.: Cambridge University Press, 2007), p. 16.

  18Anthony J. Mayo and Nitin Nohria, In Their Time: The Greatest Business Leaders of the Twentieth Century (Boston: Harvard Business Review Press, 2005), p. 207.

  19Robert D. Putnam, Bowling Alone: The Collapse and Revival of American Community (New York: Touchstone Books, 2001), p. 17.

  20Geoffrey Colvin, “The Art of Management: How Alfred P. Sloan, Michael Porter, and Peter Drucker Taught Us All,” Fortune, March 21, 2005, p. 32.

  21Colvin, “The Art of Management,” p. 32.

  22Walter Kiechel, “The Management Century,” Harvard Business Review, November 2012.

  23Mayo and Nohria, In Their Time, p. 193.

  24Susan Ariel Aaronson, “Serving America’s Business? Graduate Business Schools and American Business, 1945–60,” Journal of Business History, Vol. 34, No. 1, pp. 160–80, January 1992.

  25Mills and Wolfe, The Power Elite, pp. 141, 143.

  26http://institutionalmemory.hbs.edu/timeline/1947/a_full-time_director_of_alumni_relations_is_appointed.html.

  27Aaronson, “Serving America’s Business?” p. 173.

  28http://institutionalmemory.hbs.edu/timeline/1942/professor_howard_t_lewis_contributes_essay_the_cost_of_loyalty_to.html.

  29Barbara Kellerman, The End of Leadership (New York: HarperBusiness, 2012), p. 26.

  30http://institutionalmemory.hbs.edu/timeline/1975/1_in_8_hbs_alumni_hold_titles_of_president_or_chairman.html.

  Chapter 23: The Hidden Hand

  1http://poetsandquants.com/2010/12/21/who-employs-the-most-harvard-mbas/.

  2Christopher D. McKenna, The World’s Newest Profession: Management Consulting in the Twentieth Century (Cambridge, U.K.: Cambridge University Press, 2010), 20.

  3Duff McDonald, The Firm: The Story of McKinsey and Its Secret Influence on American Business (New York: Simon & Schuster, 2013), p. 63.

  4Ibid., p. 80.

  5Ibid.

  6Elizabeth Haas Edersheim, McKinsey’s Marvin Bower: Vision, Leadership, and the Creation of Management Consulting (Hoboken, NJ: Wiley, 2006), p. 54.

  7J. Paul Mark, The Empire Builders: Inside the Harvard Business School (New York: William Morrow, 1987), p. 61.

  8Hal Higdon, The Business Healers (New York: Random House, 1969), p. 136.

  9https://www.facebook.com/McKinseyWomen/posts/761285193969145

  10McKenna, The World’s Newest Profession, p. 158.

  11Thomas K. McCraw, “The Challenge of Alfred D. Chandler, Jr.: Retrospect and Prospect,” Reviews in American History 15, no. 1 (1987): 160–78.

  12Mauro F. Guillen, Models of Management: Work, Authority, and Organization in a Comparative Perspective (Chicago: University Of Chicago Press, 1994), pp. 200–201.

  13George MacDonald Fraser, Flashman: A Novel (New York: Plume, 1984), 30.

  14Matthew Stewart, The Management Myth: Why the Experts Keep Getting It Wrong (New York: Norton, 2009).

  15Mark, The Empire Builders, p. 166.

  16Ibid.

  17Matthias Kipping, “Hollow from the Start? Image Professionalism in Management Consulting,” Current Sociology 59, no. 4 (July 2011): 530–50.

  18James O’Shea and Charles Madigan, Dangerous Company: Management Consultants and the Businesses They Save and Ruin (New York: Penguin Books, 1998), pp. 282–83.

  19McKenna, The World’s Newest Profession: Management Consulting in the Twentieth Century, p. 205.

  20John Byrne, BusinessWeek, June 23, 1986.

  21Mark, The Empire Builders, p. 171.

  22Ibid., p. 174.

  23McKenna, The World’s Newest Profession, p. 3.

  24David Leonhardt, “A Matter of Degree? Not for Consultants,” New York Times, October 1, 2000.

  25Interview with McKinsey recruite, May 2015.

  26Stuart Crainer and Des Dearlove, Gravy Training: Inside the Business of Business Schools (San Francisco: Jossey-Bass, 1999), p. xiv.

  Chapter 24: The Specialists: Robert Schlaifer & Howard Raiffa

  1Robert R. Locke, “Reform of Finance Education in US Business Schools: An Historian’s View,” Real-World Economics Review, Issue no. 58, December 12, 2011, pp. 95–112.

  2Alfred D. Chandler Jr., Scale and Scope: The Dynamics of Industrial Capitalism (Cambridge, MA: Belknap Press of Harvard University Press, 1994), p. 607.

  3Marion Fourcade, “Theories of Markets and Theories of Society,” American Behavioral Scientist 50, no. 8 (April 1, 2007): 1015–34.

  4Rakesh Khurana, From Higher Aims to Hired Hands: The Social Transformation of American Business Schools and the Unfulfilled Promise of Management as a Profession (Princeton, NJ: Princeton University Press, 2010), p. 254.

  5Conversation with author, May 2015.

  6Stanley Teele, letter to the president of Harvard, 1955–56. Report of the President of Harvard College and reports of departments, p. 446.

  7http://www.hbs.edu/news/releases/Pages/john-bishop-dead-at-93.aspx.

  8http://users.physics.harvard.edu/~wilson/freshman_seminar/READING_on_various_items/Hooward%20Raiffs%20papers/How%20Howard%20Raiffa%20got%20started.pdf.

  9Mie Augier and James G. March, The Roots, Rituals, and Rhetorics of Change: North American Business Schools after the Second World War (Stanford, CA: Stanford Business Books, 2011), p. 156, http://www.questia.com/read/121229385/the-roots-rituals-and-rhetorics-of-change-north.

  10Sharon Bertsch McGrayne, The Theory That Would Not Die: How Bayes’ Rule Cracked the Enigma Code, Hunted Down Russian Submarines, and Emerged Triumphant from Two Centuries of Controversy (New Haven, CT: Yale University Press, 2011), p. 150.

  11Stanley Teele, letter to the president of Harvard, 1960–61. Report of the President of Harvard College and reports of departments, p. 375.

  12Khurana, From Higher Aims to Hired Hands, p. 272.

  13Stuart Crainer and Des Dearlove, Gravy Training: Inside the Business of Business Schools (San Francisco: Jossey-Bass, 1999), p. 43.

  14William Deresiewicz, Excellent Sheep: The Miseducation of the American Elite and the Way to a Meaningful Life (New York: Free Press, 2015), p. 237.

  15Lewis Lapham, Money and Class in America (New York: Weidenfeld & Nicolson, 1988), pp. 20, 21.

  16McGrayne, The Theory That Would Not Die, p. 152.

  17http://www.thecrimson.com/article/1970/6/2/the-b-school-the-new-breed-panti-war/.

  18http://www.thecrimson.com/article/1970/2/18/they-burned-their-books-at-b-school/.

  Chapter 25: The Philanthropist: Henry Ford II

  1Rakesh Khurana,
From Higher Aims to Hired Hands: The Social Transformation of American Business Schools and the Unfulfilled Promise of Management as a Profession (Princeton, NJ: Princeton University Press, 2010), p. 241.

  2Mie Augier and James G. March, The Roots, Rituals, and Rhetorics of Change: North American Business Schools after the Second World War (Stanford, CA: Stanford Business Books, 2011), p. 154, http://www.questia.com/read/121229379/the-roots-rituals-and-rhetorics-of-change-north.

  3Dwight Macdonald, The Ford Foundation: The Men and the Millions (New Brunswick,NJ: Transaction, 1956), p. 137.

  4Donald David, letter to the president of Harvard, 1954–55. Report of the President of Harvard College and reports of deparments, p. 750, 752.

  5Kimball to JDR Jr., 5 May 1949, Box 69, Series G (Educational Interests), Record Group 2 (Office of the Messrs. Rockefeller), Rockefeller Family Archives, Rockefeller Archive Center, Sleepy Hollow, New York.

  6Augier and March, The Roots, Rituals, and Rhetorics of Change, p. 149, http://www.questia.com/read/121229378/the-roots-rituals-and-rhetorics-of-change-north.

  7Khurana, From Higher Aims to Hired Hands, p. 258.

  8Susan Ariel Aaronson, “Serving America’s Business? Graduate Business Schools and American Business, 1945–60,” Journal of Business History, Vol. 34, No. 1, p. 170, January 1992.

  9Ibid.

  10Khurana, From Higher Aims to Hired Hands, p. 250.

  11Wallace Donham, letter to the president of Harvard, 1936–37. Report of the President of Harvard College and reports of departments.

  12Jeffrey L. Cruikshank, A Delicate Experiment: The Harvard Business School 1908–1945 (Boston: Harvard Business Review Press, 1987), p. 195.

  13http://institutionalmemory.hbs.edu/timeline/1951/david_cites_hbs_s_definite_obligation_to_help_other_business_schools_develop.html.

  14http://institutionalmemory.hbs.edu/timeline/1953/doctor_in_business_administration_degree_replaces_the_doctor_of_commercial_science.html.

  15Fritz Jules Roethlisberger, The Elusive Phenomena: An Autobiographical Account of My Work in the Field of Organizational Behavior at the Harvard Business School (Cambridge, MA: Harvard University Press, 1977), p. 287.

  16http://institutionalmemory.hbs.edu/timeline/1957/newly_created_directory_of_doctoral_degree_holders_shows_that_60_of.html.

  17http://institutionalmemory.hbs.edu/timeline/1967/first_three_women_receive_dbas.html