The Golden Passport

by Duff McDonald

  20Matt Murray, Rachel Emma Silverman, and Carol Hymowitz, “GE’s Jack Welch Meets Match in Divorce Court,” Wall Street Journal, November 27, 2002.

  21http://nymag.com/nymetro/news/media/features/5976/.

  Chapter 36: Can Leaders Be Manufactured?

  1https://hbr.org/2004/01/managers-and-leaders-are-they-different.

  2Matthew Stewart, The Management Myth: Why the Experts Keep Getting It Wrong (New York: Norton, 2009), p. 136.

  3Barbara Kellerman, Hard Times: Leadership in America (Stanford, CA: Stanford University Press, 2014), p. 3.

  4http://www.nytimes.com/2015/04/12/education/edlife/12edl-12leadership.html?_r=0.

  5Barbara Kellerman, The End of Leadership (New York: HarperBusiness, 2012), p. 156.

  6Associates of the Harvard Business School, The Success of a Strategy: An Assessment of Harvard University Graduate School of Business Administration ([Boston]: [Harvard University, Graduate School of Business Administration], 1979), p. 43.

  7Conversation with author, June 2014.

  8http://www.emeraldgrouppublishing.com/drucker/pdf/drucker.pdf.

  9Gianpiero Petriglieri and Jennifer Petriglieri, “Can Business Schools Humanize Leadership?” Forthcoming Academy of Management Learning and Education, 2015, p. 5.

  10Michel Anteby, Manufacturing Morals: The Values of Silence in Business School Education (Chicago: University of Chicago Press, 2013), p. 81.

  11William Deresiewicz, Excellent Sheep: The Miseducation of the American Elite and the Way to a Meaningful Life (New York: Free Press, 2015), p. 131.

  12Petriglieri and Petriglieri. “Can Business Schools Humanize Leadership?” p. 5.

  13http://business-reporter.co.uk/2015/03/10/why-women-make-better-ceos-in-the-21st-century/.

  14Kellerman, The End of Leadership, p. 193.

  15Ibid.

  16Deresiewicz, Excellent Sheep, p. 135.

  17James Hoopes, False Prophets (New York: Basic Books, 2007) p. 274.

  18Bill George, Peter Sims, Andrew N. McLean, and Diana Mayer, “Discovering Your Authentic Leadership,” Harvard Business Review, February 2007, https://hbr.org/2007/02/discovering-your-authentic-leadership.

  19Hoopes, False Prophets, Introduction.

  20Joan Magretta and Nan Stone, What Management Is: How It Works and Why It’s Everyone’s Business (New York: Free Press, 2012), p. 195.

  21Hoopes, False Prophets, Introduction.

  22Jeffrey Pfeffer, Leadership BS (New York: HarperCollins, 2015), p. 87.

  23http://institutionalmemory.hbs.edu/timeline/1993/27_of_graduating_students_go_into_consulting_24_into_manufacturing_and.htm.

  24http://institutionalmemory.hbs.edu/timeline/1986/investment_banking_attracts_29_of_class_of_86_consulting_18_and.html.

  Chapter 37: Can Entrepreneurship Be Learned?

  1Jeffrey L. Cruikshank, Shaping the Waves: A History of Entrepreneurship at Harvard Business School (Boston: Harvard Business Review Press, 2005), p. 122.

  2Ibid., p. 344.

  3Ibid., p. 140.

  4Ibid.

  5Ibid., p. 132.

  6Ibid., p. 134.

  7Ibid., p. 126.

  8HBS course catalog, 1947–48, p. 54.

  9Cruikshank, A Delicate Experiment, p. 264.

  10David Callahan, Kindred Spirits: Harvard Business School’s Extraordinary Class of 1949 and How They Transformed American Business (Hoboken, NJ: Wiley, 2002), p. 45.

  11Laurence Shames, The Big Time: Harvard Business School’s Most Successful Class—and How It Shaped America (New York: HarperCollins, 1986), p. 112.

  12Cruikshank, Shaping the Waves, p. 51.

  13Ibid., p. 55.

  14Ibid., p. 69.

  15Ibid.

  16Cruikshank, Shaping the Waves, p. 47.

  17Ibid., p. 95.

  18Ibid., p. 155.

  19http://www.scribd.com/doc/186594532/MBAs-at-Unicorns-as-defined-by-Aileen-Lee.

  20Cruikshank, Shaping the Waves, p. 165.

  21Ibid., p. 227.

  22Ibid., p. 295.

  23Philip Delves Broughton, Ahead of the Curve: Two Years at Harvard Business School (New York: Penguin Press, 2008), p. 178.

  24George Gilder, The Spirit of Enterprise (New York: Simon & Schuster, 1985), p. 147.

  25Stuart Crainer and Des Dearlove, Gravy Training: Inside the Business of Business Schools (San Francisco: Jossey-Bass, 1999), p. 27.

  26Patrick Daniel, “Sam Altman: Founders Need Passion—Which MBAs Lack,” Harbus, November 24, 2014.

  27William Alden, “Tech Investor to Entrepreneurs: A Harvard Degree Is a Liability,” New York Times, DealBook, February 10, 2014.

  28“What Is This Palo Alto VC Smoking?,” LinkedIn Pulse, February 12, 2014.

  29http://www.alternet.org/election-2012/breaking-update-court-unseals-potentially-devastating-testimony-romney-said-stocks.

  30http://www.hbs.edu/faculty/Pages/item.aspx?num=41548.

  31http://www.hbs.edu/entrepreneurs/pdf/tomstemberg.pdf.

  32http://www.ft.com/cms/s/0/6b6c0db8-ad24–11e4-a5c1–00144feab7de.html#axzz3t173X3qZ.

  Chapter 38: The Second Broadside: Derek Bok

  1Larry Kramer, “Harvards Fight Fiercely Over the Business School,” Washington Post, June 8, 1979.

  2Email correspondence with the author, June 15, 2014.

  3Elizabeth Haas Edersheim, McKinsey’s Marvin Bower: Vision, Leadership, and the Creation of Management Consulting (New York: Wiley, 2006), p. 172.

  4Ibid., p. 179.

  5Ibid., p. 183.

  6Ibid., p. 182.

  7Ibid., p. 184.

  8J. Paul Mark, Empire Builders: Inside the Harvard Business School (New York: William Morrow, 1987), p. 68.

  9Ibid., p. 63.

  Chapter 39: Managing Our Way to Economic Decline

  1Lawrence Freedman, Strategy: A History (Oxford, U.K.: Oxford University Press, 2013), p. 492.

  2Lawrence Fouraker, letter to the president of Harvard, 1976–77. Report of the President of Harvard College and reports of departments, p. 338.

  3Associates of the Harvard Business School, The Success of a Strategy: An Assessment of Harvard University Graduate School of Business Administration ([Boston]: [Harvard University, Graduate School of Business Administration], 1979).

  4Laurence Shames, The Big Time: Harvard Business School’s Most Successful Class—And How It Shaped America (New York: HarperCollins, 1986), p. 112.

  5https://hbr.org/1982/05/managing-as-if-tomorrow-mattered.

  6Thomas K. McCraw, American Business, 1920-2000: How it Worked (Wheeling, Illinois: Harland Davidson, 2000), p. 157.

  7Shames, The Big Time, pp. 91, 92.

  8Ibid., p. 95.

  9H. Edward Wrapp, “Don’t Blame the System, Blame the Managers,” Dun’s Review, September 1980, p. 88..

  10Steve Lohr, “Overhauling America’s Business Management,” New York Times Magazine, January 4, 1981.

  11Ibid.

  12Wayne Biddle, “Lester Crown Blames the System,” New York Times, June 16, 1985.

  13Lohr, “Overhauling America’s Business Management.”

  14https://hbr.org/2007/07/managing-our-way-to-economic-decline.

  15Art Kleiner, The Age of Heretics: A History of the Radical Thinkers Who Reinvented Corporate Management (San Francisco: Jossey-Bass, 2008), p. 277.

  16Joseph A. Schumpeter, Capitalism, Socialism, and Democracy (New York: Harper Perennial Modern Classics, 2008), p. 141.

  17Shames, The Big Time, p. 212.

  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.

  19Shames, The Big Time, p. 103.

  20http://articles.latimes.com/1988–04–24/business/fi-2487_1_harvard-business-school-seal-beach-harvard-mba.

  Chapter 40: A Decade in Review: 1970–1979

  1Lawrence Fouraker, letter to the president of Harvard, 1971–72, p. 350.

  2“New Dean, New Era for Harvard B-sch
ool,” BusinessWeek, January 24, 1970, p. 59.

  3Associates of the Harvard Business School, The Success of a Strategy: An Assessment of Harvard University Graduate School of Business Administration ([Boston]: [Harvard University, Graduate School of Business Administration], 1979).

  4Lawrence Fouraker, letter to the president of Harvard, 1974–75. Report of the President of Harvard College and reports of departments, p. 317.

  5Lawrence Fouraker, letter to the president of Harvard, 1977–78. Report of the President of Harvard College and reports of departments, p. 316.

  6Associates of the Harvard Business School, The Success of a Strategy, p. 13.

  7Ibid., p. 19.

  8Walter Kiechel, “The Management Century,” Harvard Business Review, November 2012, accessed July 29, 2015, https://hbr.org/2012/11/the-management-century.

  9“New Dean, New era for Harvard B-school,” BusinessWeek, January 24, 1970, p. 58.

  10Talcott Parsons and Gerald Platt, The American University (Cambridge, MA: Harvard University Press, 1973), p. 255.

  11Associates of the Harvard Business School, The Success of a Strategy, p. 12.

  12Laurence Shames, The Big Time: Harvard Business School’s Most Successful Class—and How It Shaped America (New York: HarperCollins, 1986), p. 196.

  13David Callahan, Kindred Spirits: Harvard Business School’s Extraordinary Class of 1949 and How They Transformed American Business (Hoboken, NJ: Wiley, 2002), p. 140.

  14Peter Cohen, The Gospel According to the Harvard Business School (Harmondsworth, U.K.: Penguin Books, 1974), p. 67.

  15Ibid., p. 109.

  16Lawrence Fouraker, letter to the president of Harvard, 1969–70, p. 328.

  17Cohen, The Gospel According to the Harvard Business School, p. 67.

  Chapter 41: The Subversive Nature of a Social Conscience

  1 Milton Friedman, “A Friedman Doctrine: The Social Responsibility of Business Is to Increase Its Profits,” New York Times Magazine, September 13, 1970.

  2Eduardo Porter, “Motivating Corporations to Do Good,” New York Times, July 15, 2014, http://www.nytimes.com/2014/07/16/business/the-do-good-corporation.html.

  3Joel Bakan, The Corporation: The Pathological Pursuit of Profit and Power (New York: Free Press, 2005), p. 34.

  4Ibid., p. 36.

  5https://hbr.org/2014/06/how-to-win-the-argument-with-milton-friedman.

  Chapter 42: The Murder of Managerialism

  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. 301.

  2Michael C. Jensen, Kevin J. Murphy, and Eric G. Wruck, “Remuneration: Where We’ve Been, How We Got to Here, What Are the Problems, and How to Fix Them,” SSRN Scholarly Paper, Rochester, NY, Social Science Research Network, July 12, 2004, http://papers.ssrn.com/abstract=561305.

  3Khurana, From Higher Aims to Hired Hands, p. 305

  4Michael C. Jensen and W. H. Meckling, “The Nature of Man,” Journal of Applied Corporate Finance 7, no. 2 (Summer 1994): 4–19.

  5Sumantra Ghoshal, “Bad Management Theories Are Destroying Good Management Practices,” Academy of Management Learning & Education 4, no. 1 (March 1, 2005): 75–91.

  6Ernie Englander and Allen Kaufman, “The End of Managerial Ideology: From Corporate Social Responsibility to Corporate Social Indifference,” Enterprise & Society 5, no. 3 (September 1, 2004): 404–50.

  7Gerald F. Davis, “Corporate Power in the 21st Century,” in Subramanian Rangan, ed., Performance and Progress: Essays on Capitalism, Business and Society (Oxford, U.K.: Oxford University Press, forthcoming).

  8http://www.bizedmagazine.com/archives/2016/2/features/how-management-education-past-shapes-present.

  9Khurana, From Higher Aims to Hired Hands, p. 125

  10Thomas K. McCraw and Jeffrey L. Cruikshank, eds., The Intellectual Venture Capitalist: John H. McArthur and the Work of the Harvard Business School, 1980–1995 (Boston: Harvard Business Review Press, 1999), p. 163.

  11Interview with author, September 2014.

  12Englander and Kaufman, “The End of Managerial Ideology,” p. 404

  13Steven N. Kaplan, “The Effects of Management Buyout on Operating Performance and Value,” Journal of Financial Economics 24 (1989); Steven N. Kaplan, “The Staying Power of Leveraged Buyouts,” Journal of Financial Economics 29 (1991), p. 287–314.

  14Michael C. Jensen and Kevin J. Murphy, “CEO Incentives—It’s Not How Much You Pay, but How,” Harvard Business Review, May–June 1990.

  15Mark S. Mizruchi, The Fracturing of the American Corporate Elite (Cambridge, MA: Harvard University Press, 2013), p. 205.

  16Gerald F. Davis, “The Rise and Fall of Finance and the End of the Society of Organizations,” Academy of Management Perspectives, August 1, 2009, Vol. 23, No. 3, p. 41.

  17Michael Lind, Land of Promise: An Economic History of the United States (New York: Harper Paperbacks, 2013), p. 351.

  18Francesco Guerrera, “Welch Denounces Corporate Obsessions,” Financial Times, March 13, 2009.

  19Michael C. Jensen, “Value Maximization, Stakeholder Theory, and the Corporate Objective Function,” SSRN Scholarly Paper, Rochester, NY, Social Science Research Network, October 1, 2001, http://papers.ssrn.com/abstract=220671.

  20Ghoshal, “Bad Management Theories Are Destroying Good Management Practices,” p. 80.

  21Ibid.

  22“How to Pay Bosses,” Economist, November 14, 2002, http://www.economist.com/node/1441839.

  23Werner Erhard and Michael C. Jensen, “Putting Integrity into Finance: A Purely Positive Approach,” SSRN Scholarly Paper, Rochester, NY, Social Science Research Network, September 23, 2014, http://papers.ssrn.com/abstract=1985594.

  24McCraw and Cruikshank, eds., The Intellectual Venture Capitalist, p. 168

  25Marie Brenner, “The Enron Wars,” Vanity Fair, April 2002.

  26Claudia H. Deutsch, “An Early Advocate of Stock Options Debunks Himself,” New York Times, April 3, 2005, http://www.nytimes.com/2005/04/03/business/yourmoney/an-early-advocate-of-stock-options-debunks-himself.html.

  27Khurana, From Higher Aims to Hired Hands, p. 326.

  Chapter 43: Managerialism Was Already Dead

  1Lawrence Fouraker, annual report by the Dean of Harvard Business School to the President of Harvard, 1973–74, p. 373.

  2Mark S. Mizruchi, The Fracturing of the American Corporate Elite (Cambridge, MA: Harvard University Press, 2013), p. xii.

  3Ibid., p. 4.

  4Ibid., p. 7.

  5Ibid.

  6Robert D. Putnam, Bowling Alone: The Collapse and Revival of American Community (New York: Touchstone Books, 2001), p. 88.

  7Thomas Frank, One Market Under God: Extreme Capitalism, Market Populism and the End of Economic Democracy (New York: Doubleday, 2000), p. 191.

  8Mizruchi, The Fracturing of the American Corporate Elite, p. 276.

  9Ernie Englander and Allen Kaufman, “The End of Managerial Ideology: From Corporate Social Responsibility to Corporate Social Indifference,” Enterprise & Society 5, no. 3 (September 1, 2004): 404–50.

  10Ibid.

  11Ibid.

  12Ibid.

  13James Hoopes, False Prophets (New York: Basic Books, 2007), p. 223.

  14Putnam, Bowling Alone, p. xiv.

  15Interview with author, November 2014.

  Chapter 44: The Kindergarten Class Play

  1John Van Maanen, “Golden Passports: Managerial Socialization and Graduate Education,” Review of Higher Education 6, no. 4 (January 1983): 435–55.

  2Interview with author, June 20, 2015.

  3http://poetsandquants.com/2014/11/11/loreals-oops-moment-harvard-mba-student-tilts-at-cosmetics-giant/.

  4http://poetsandquants.com/2014/11/11/loreals-oops-moment-harvard-mba-student-tilts-at-cosmetics-giant/2/.

  5Peter Cohen, The Gospel According to the Harvard Business School (Harmondsworth, U.K.: Penguin Books, 197
4), p. 16.

  6“Because Wisdom Can’t Be Told,” https://hbr.org/product/because-wisdom-can-t-be-told/451005-PDF-ENG.

  7Charles D. Orth III, Social Structure and Learning Climate: The First Year at the Harvard Business School (Boston: Division of Research, Graduate School of Business Education, Harvard University, 1963), p. 36.

  Chapter 45: Monetizing It

  1http://content.time.com/time/magazine/article/0,9171,873348,00.html.

  2David W. Ewing, Inside the Harvard Business School (New York: Crown, 1990), p. 206.

  3 P. 136 in The Empire Builders.

  4J. Paul Mark, The Empire Builders: Inside the Harvard Business School (New York: William Morrow, 1987), p. 138.

  5http://www.nytimes.com/1986/05/29/business/business-people-harvard-professor-and-nfl-trial.html.

  6http://www.nytimes.com/1986/05/28/sports/professors-deny-intent-to-harm-usfl.html; http://www.nytimes.com/1986/05/25/sports/porter-presentation-is-trial-s-exhibit-a.html.

  7Lawrence C. Soley, Leasing the Ivory Tower: The Corporate Takeover of Academia (Boston: South End Press, 1995), p. 63.

  8http://www.hbs.edu/centennial/businesssummit/leadership/transforming-giants.html.

  9Rosabeth Moss Kanter, SuperCorp: How Vanguard Companies Create Innovation, Profits, Growth, and Social Good (New York: Crown Business, 2009), p. 1.

  10http://www.nytimes.com/2008/11/06/technology/business-computing/06blue.html?_r=0.

  11http://www.ft.com/cms/s/0/cf8a2e84–5b93–11e4-a674–00144feab7de.html#axzz3qMR5aLMu.

  12http://www.thecrimson.com/article/2001/6/7/hbs-professors-apply-skills-in-corporate/?page=single.

  13Interview with author, October 2014.

  14http://harry-lewis.blogspot.com/2011/05/monitor-and-libya-once-again.html.

  15http://www.boston.com/news/education/higher/articles/2011/04/06/harvard_leader_confronted_on_professors_ties_to_libya/.

  16Interview with author, June 2014.

  17https://www.bostonglobe.com/opinion/2013/01/20/when-smartest-guys-room-bankrupt/lUYj7Nl8vAHhlL1iWVpSoK/story.html.

  18http://news.harvard.edu/gazette/story/2012/01/an-adviser-for-global-strategy/.

  19http://www.livemint.com/Companies/GAI4Xb9jCzDolvqKIs59SO/Palepu-and-Rao-should-own-up-responsibility.html.

  20Felix I. Lessambo, The International Corporate Governance System: Audit Roles and Board Oversight (Basingstoke, England: Palgrave Macmillan, 2013), p. 207.