The Golden Passport

by Duff McDonald

  21http://www.firstpost.com/business/money/satyams-lopsided-verdict-harvards-krishna-palepu-fined-rs-2–7-cr-while-raju-gets-off-with-rs-10-lakh-1999223.html.

  22http://www.nakedcapitalism.com/2012/03/on-the-continuing-oxymoron-of-ethics-at-harvard.html.

  Chapter 46: The Monopolist: Michael Porter

  1Matthew Stewart, The Management Myth: Why the Experts Keep Getting It Wrong (New York: Norton, 2009), p. 162.

  2Walter Kiechel, The Lords of Strategy: The Secret Intellectual History of the New Corporate World (Boston: Harvard Business Review Press, 2010), p. 129.

  3Ibid., p. 131.

  4Ibid., p. 136.

  5Stewart, The Management Myth.

  6Henry Mintzberg, Joseph Lampel, and Bruce Ahlstrand, Strategy Safari: A Guided Tour Through the Wilds of Strategic Management (New York: Free Press, 2005), p. 84.

  7B. D. Henderson, “Competitive Strategy (Book Review),” Journal of Business Strategy 1, no. 4 (1981): 84–85.

  8Mintzberg, Lampel, and Ahlstrand, Strategy Safari, p. 115.

  9Stewart, The Management Myth, p. 184.

  10Shirley Leung, “Steve Grossman, Michael Porter Team up on Income Inequality,” Boston Globe, February 18, 2015, https://www.bostonglobe.com/business/2015/02/18/steve-grossman-michael-porter-team-income-inequality/6AjQNRc7lrTfXSbLH01ZQI/story.html.

  11Henry Mintzberg, “Managing the Myths of Health Care,” World Hospitals and Health Services 48, no. 3 (2012): 4–7.

  12Martin Desmarais, “Harvard’s Michael Porter: Small Businesses Hold Keys to U.S. Fiscal Health,” Bay State Banner, October 22, 2014.

  13https://hbr.org/2012/03/the-looming-challenge-to-us-competitiveness.

  14http://www.hbs.edu/competitiveness/research/Pages/research-details.aspx?rid=18.

  15Michael Blanding, “HBS Cases: The Battle for San Francisco—HBS Working Knowledge,” February 17, 2015, http://hbswk.hbs.edu/item/7709.html.

  16https://hbr.org/2014/12/rethink-what-you-know-about-high-achieving-women.

  17Charles H. Green, “Competitive Theory and Business Legitimacy,” BusinessWeek: Companies and Industries, June 22, 2010, http://www.businessweek.com/managing/content/jun2010/ca20100618_541848.htm.

  18http://web.williams.edu/Economics/bakija/BakijaHeimJobsIncomeGrowthTopEarners.pdf.

  19http://robertreich.org/post/97357974470.

  Chapter 47: Self-Interest, With a Side Dish of Ethics

  1Jeff Gerth, “Shad: Ease Regulations,” New York Times, April 7, 1981, http://www.nytimes.com/1981/04/07/business/shad-ease-regulations.html.

  2Richard L. Hudson, “The Deregulator,” Wall Street Journal, January 12, 1984, p.1.

  3Alison Leigh Cowan, “Harvard to Get $30 Million Ethics Gift,” New York Times, March 31, 1987, http://www.nytimes.com/1987/03/31/business/harvard-to-get-30-million-ethics-gift.html.

  4John A. Byrne and Alex Beam, “Harvard’s $30 Million Windfall for Ethics 101,” BusinessWeek, April 13, 1987, p. 40.

  5Ibid.

  6John Shad, “Business’s Bottom Line: Ethics,” New York Times, July 27, 1987, http://www.nytimes.com/1987/07/27/opinion/business-s-bottom-line-ethics.html.

  7John Trumpbour, How Harvard Rules: Reason in the Service of Empire (Boston: South End Press, 1999), p. 159.

  8John E. Tropman, The Catholic Ethic and the Spirit of Community (Washington, DC: Georgetown University Press, 2001), p. 50.

  9http://izquotes.com/quote/230907.

  10Thomas R. Piper, Mary C. Gentile, and Sharon Daloz Parks, Can Ethics Be Taught?: Perspectives, Challenges, and Approaches at the Harvard Business School (Boston: Harvard Business Review Press, 1993), p. 151.

  11Wallace Donham, letter to the president of Harvard, 1921–22. Report of the President of Harvard College and reports of departments, p. 98.

  12Wallace B. Donham, “The Social Significance of Business,” Harvard Business Review 278, no. 5 (1926): 406–19.

  13Jeffrey L. Cruikshank, A Delicate Experiment: The Harvard Business School 1908–1945 (Boston: Harvard Business Review Press, 1987), p. 169.

  14Stanley Teele, letter to the president of Harvard, 1960–61. Report of the President of Harvard College and reports of departments, p. 361.

  15http://content.time.com/time/magazine/article/0,9171,958067,00.html.

  16Laurence Shames, The Big Time: Harvard Business School’s Most Successful Class—and How It Shaped America (New York: HarperCollins, 1986), p. 175.

  17Lawrence Fouraker, letter to the president of Harvard, 1975–76. Report of the President of Harvard College and reports of departments, p. 338.

  18John LeBoutillier, “Of Harvard, Elitism, and Amorality,” New York Times, December27, 1978, p. 23.

  19Associates 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).

  20Richard Lachmann, The United States in Decline (Bingley, England: Emerald Group, 2014), p. 174.

  21Associates of the Harvard Business School, The Success of a Strategy, p. 11.

  22Shames, The Big Time, p. 174.

  23Ibid., p. 175.

  24David W. Ewing, Inside the Harvard Business School (New York: Crown, 1990), p. 238.

  25Thomas 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. 239.

  26Ibid., p. 223.

  27J. M. Stearns and S. Borna, “A Comparison of the Ethics of Convicted Felons and Graduate Business Students: Implications for Business Practice and Business Ethics Education,” Teaching Business Ethics, 2, no. 10 (1998): 175–95.

  28R. D. Williams, J. D. Barrett, and M. Brabston, “Managers’ Business School Education and Military Service: Possible Links to Corporate Criminal Activity,” Human Relations 53, no. 5 (2000): 691–712.

  29Philip Delves Broughton, Ahead of the Curve: Two Years at Harvard Business School (New York: Penguin Press, 2008), p. 164.

  30Rakesh Khurana and Nitin Nohria, “It’s Time to Make Management a True Profession,” Harvard Business Review, October 2008, accessed January 17, 2016, https://hbr.org/2008/10/its-time-to-make-management-a-true-profession.

  31Joel M. Podolny, “The Buck Stops (and Starts) at Business School,” Harvard Business Review, June 2009, accessed January 17, 2016, https://hbr.org/2009/06/the-buck-stops-and-starts-at-business-school.

  32Ed Butler, BBC, September 10, 2010, http://www.bbc.co.uk/iplayer/episode/p004541y/Assignment_Masters_in_Business.

  Chapter 48: Life Out of Balance

  1“Conceptual Foundations of the Balanced Scorecard,” HBS Working Knowledge, March 17, 2010, http://hbswk.hbs.edu/item/conceptual-foundations-of-the-balanced-scorecard.

  2Ibid.

  3Ibid.

  4Art Kleiner, “What Are the Measures That Matter?,” strategy+business, January 9, 2002, First Quarter 2002, Issue 26.

  5Robert R. Locke and J.-C. Spender, Confronting Managerialism: How the Business Elite and Their Schools Threw Our Lives Out of Balance (London: Zed Books, 2011), p. 47.

  6https://rwer.wordpress.com/2013/04/29/getting-business-school-reform-wrong-why-it-happened-and-what-to-do-about-it/.

  7Ibid.

  8Ibid.

  9H. Thomas Johnson and the Center for Process Studies, “Accounting, Accountability, and Misplaced Concreteness,” Process Studies 43, no. 2 (2014): 47–60.

  10Joe Stenzel, Lean Accounting: Best Practices for Sustainable Integration (Hoboken, NJ: Wiley, 2008), p. 50.

  11Johnson, “Accounting, Accountability, and Misplaced Concreteness,” p. 50.

  12Ibid.

  13Robert R. Locke, “Reassessing the Basis of Corporate Business Performance: Modern Financial Economics’ Profit Control Versus Integrated People and Process Improvement,” Real-World Economics Review, no. 64 (2013), http://www.paecon.net/PAEReview/issue64/Locke64.pdf.

  14Kleiner, �
�What Are the Measures That Matter?”

  Chapter 49: A Decade in Review: 1980–1989

  1“New Dean, New Era for Harvard B-School,”BusinessWeek, January 24, 1970, p.59.

  2Dean John McArthur, letter to the president of Harvard, 1980–81.

  3Walter Kiechel, “New Debate About Harvard Business School,” Fortune, November 9, 1987, p. 48.

  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. 330.

  5Ibid., p. 331.

  6Laurence Shames, The Big Time: Harvard Business School’s Most Successful Class—and How It Shaped America (New York: HarperCollins, 1986), p. 32.

  7Dean John McArthur, letter to the president of Harvard, 1979–80, p. 295.

  8Dean John McArthur, letter to the president of Harvard, 1980–81, p. 323.

  9Thomas 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. 16.

  10“Remaking an Institution: The Harvard B-School,” BusinessWeek, March 24, 1986.

  11McCraw and Cruikshank, eds., The Intellectual Venture Capitalist, p. 75.

  12Ibid., p. 87.

  13Ibid., p. 45.

  14Ibid., p. 138.

  15Ibid., p. 143.

  16Derek Bok, Higher Learning (Cambridge, MA: Harvard University Press, 1986), p. 99.

  17McCraw and Cruikshank, eds., The Intellectual Venture Capitalist, p. 228.

  18Ibid., p. 237.

  19Ibid., pp. 264–67.

  20Ibid., p. 109.

  21Ibid., p. 16.

  22Dean John McArthur, letter to the president of Harvard, 1982–83. Report of the President of Harvard College and reports of departments, p. 319.

  23Ibid.

  24Kenton W. Elderkin, Mutiny on the Harvard Bounty: The Harvard Business School and the Decline of the Nation (Mansfield, OH: Elderkin, 1997), p. 146.

  25Dean John McArthur, letter to the president of Harvard, 1983–84. Report of the President of Harvard College and reports of departments, p. 319.

  26Dean John McArthur, letter to the president of Harvard, 1985–86. Report of the President of Harvard College and reports of departments, p. 312.

  27Elderkin, Mutiny on the Harvard Bounty, p. 134.

  28Ibid., p. 130

  29Ibid., p. 193.

  30Scott Jaschik, “Job Hunting: Business; The B-School Hierarchy,” New York Times, April 25, 2004.

  31Shames, The Big Time, p. 193.

  32David Callahan, Kindred Spirits: Harvard Business School’s Extraordinary Class of 1949 and How They Transformed American Business (Hoboken, NJ: Wiley, 2002), p. 29.

  33David W. Ewing, Inside the Harvard Business School (New York: Crown, 1990), p. 29.

  34Frank Dobbin and Dirk Zorn, “Corporate Malfeasance and the Myth of Shareholder Value,” SSRN Scholarly Paper, Rochester, NY, Social Science Research Network, 2005, http://papers.ssrn.com/abstract=2412599.

  35Kiechel, “New Debate About Harvard Business School,” p. 48.

  Chapter 50: The Money Mill

  1Charles R. Geisst, Wall Street: A History: From Its Beginnings to the Fall of Enron (Oxford, U.K.: Oxford University Press, 2004), p. 277.

  2Cited in Vance Packard, The Status Seekers (New York: Pocket Books, 1961), p. 99.

  3David Callahan, Kindred Spirits: Harvard Business School’s Extraordinary Class of 1949 and How They Transformed American Business (Hoboken, NJ: Wiley, 2002), p. 110.

  4Leslie Wayne, “Wall Street’s Last Gentleman: Richard Jenrette; Forging the Equitable Connection,” New York Times, November 18, 1984, http://www.nytimes.com/1984/11/18/business/wall-street-s-last-gentleman-richard-jenrette-forging-the-equitable-connection.html.

  5http://www.hbs.edu/entrepreneurs/pdf/danlufkin.pdf.

  6http://www.bloomberg.com/news/articles/2016–01–21/dimon-s-pay-jumps-to-27-million-with-most-tied-to-performance.

  7J. Paul Mark, The Empire Builders: Inside the Harvard Business School (New York: William Morrow, 1987), p. 149.

  8John C. Whitehead, A Life in Leadership: From D-Day to Ground Zero (New York: Basic Books, 2005), p. 70.

  9Ibid.

  10Ibid., p. 91.

  11Kenton W. Elderkin, Mutiny on the Harvard Bounty: The Harvard Business School and the Decline of the Nation (Mansfield, OH: Elderkin, 1997), p. 130.

  12Mark, The Empire Builders, p. 149.

  13Ibid., p. 150.

  14Douglas Martin, “John C. Whitehead, Who Led Effort to Rebuild After 9/11, Dies at 92,” New York Times, February 7, 2015, http://www.nytimes.com/2015/02/08/nyregion/john-c-whitehead-a-leader-in-finance-and-government-dies-at-92.html.

  15Mark, The Empire Builders, p. 150.

  16http://www.hbs.edu/news/releases/Pages/hbs-benefactor-john-whitehead.aspx.

  17Greg Farrell and Henry Sender, “The Shaming of John Thain,” Financial Times, March 13, 2009.

  18Ibid.

  19Ibid.

  20http://www.nytimes.com/2015/12/11/business/dealbook/john-thains-tin-ear-survives-to-the-end-at-cit.html.

  21Ibid.

  22Gregory Zuckerman, The Greatest Trade Ever: The Behind-the-Scenes Story of How John Paulson Defied Wall Street and Made Financial History (New York: Crown Business, 2010), p. 29.

  23Ibid., p. 30.

  24http://www.sec.gov/news/press/2010/2010–123.htm.

  25Nathaniel Popper, “In Settlement’s Fine Print, Goldman May Save $1 Billion,” New York Times, April 11, 2016 p. A-1.

  26http://arstechnica.com/civis/viewtopic.php?t=102181

  27http://boston.cbslocal.com/2015/06/03/wall-street-billionaire-donates-400m-to-harvard-largest-gift-in-school-history/.

  28http://www.economonitor.com/lrwray/2015/06/08/john-paulson-goldman-sachs-and-harvard-the-conclusion-of-the-abacus-story/.

  29http://www.nytimes.com/2015/11/10/business/dealbook/ackmans-enigmatic-investment-philosophy.html.

  30Marie Cabural, “Bill Ackman on Creating Value, Evaluating Management Teams,” ValueWalk, February 9, 2015, accessed June 23, 2015, http://www.valuewalk.com/2015/02/bill-ackman-on-creating-value/.

  31http://www.nytimes.com/2014/10/26/business/bill-ackman-and-his-hedge-fund-betting-big.html?smprod=nytcore-ipad&smid=nytcore-ipad-share&_r=0.

  32Katrina Brooker, “Love Him or Hate Him, Ackman Now Runs the World’s Top Hedge Fund,” Bloomberg, January 6, 2015, accessed January 30, 2016, http://www.bloomberg.com/news/articles/2015-01-06/love-him-or-hate-him-ackman-now-runs-the-world-s-top-hedge-fund.

  33http://www.nytimes.com/2015/11/10/business/dealbook/ackmans-enigmatic-investment-philosophy.html.

  34Sarah Krouse and Daisy Maxey, “Leader of Valeant Investor Sequoia Resigns,” Wall Street Journal, March 24, 2016.

  35Matt Levine, “Distressed Desks and Drug Problems,” Bloomberg Gadfly, March 24, 2016.

  Chapter 51: The Thorn in Their Side

  1https://hbr.org/1996/07/musings-on-management.

  2Stuart Crainer and Des Dearlove, Gravy Training: Inside the Business of Business Schools (San Francisco: Jossey-Bass, 1999), p. 35.

  3Ibid.

  4Interview with author, November 2015.

  5Interview with author, November 2015.

  6Henry Mintzberg, Managers Not MBAs: A Hard Look at the Soft Practice of Managing and Management Development (San Francisco: Berrett-Koehler, 2005), p. 111.

  7Matt Symonds, “Business School’s Biggest Enemy Takes on Harvard,” Bloomberg, January 14, 2015, accessed June 23, 2015. http://www.bloomberg.com/news/articles/2015-01-14/business-educations-loudest-enemy-takes-on-harvard.

  8https://hbr.org/2011/09/how-to-solve-the-cost-crisis-in-health-care.

  9Interview with author, November 2015.

  10https://hbr.org/1996/07/musings-on-management.

  11https://hbr.org/2004/11/enough-leadership.

  12Interview with
author, November 2015.

  13Henry Mintzberg, Simply Managing: What Managers Do—and Can Do Better (San Francisco: Berrett-Koehler, 2013), p. 167.

  14http://www.nytimes.com/2012/05/21/world/europe/21iht-educlede21.html.

  15https://hbr.org/2009/03/rethinking-the-mba/.

  16https://hbr.org/1996/07/musings-on-management.

  17Matt Symonds, “Business School’s Biggest Enemy Takes on Harvard,” Bloomberg, January 14, 2015, accessed June 23, 2015, http://www.bloomberg.com/news/articles/2015-01-14/business-educations-loudest-enemy-takes-on-harvard.

  Chapter 52: A Decade in Review: 1990–1999

  1Nigel Thrift,Knowing Capitalism (London: SAGE, 2005), p. 44.

  2Thomas Frank, One Market Under God: Extreme Capitalism, Market Populism, and the End of Economic Democracy (New York: Doubleday, 2000), p. 97.

  3David A. Kaplan, “Tyco’s ‘Piggy,’ Out of Prison and Living Small,” New York Times, March 1, 2015, p. A-1.

  4Frank, One Market Under God, p. 174.

  5Sumantra Ghoshal and Christopher A. Bartlett, The Individualized Corporation: A Fundamentally New Approach to Management (New York: HarperBusiness, 1999), p. 245.

  6Frank, One Market Under God, p. 177.

  7Edmund L. Andrews, “Job Cuts at AT&T Will Total 40,000, 13% of Its Staff,” New York Times, January 3, 1996, p. A-1.

  8Stuart Crainer and Des Dearlove, Gravy Training: Inside the Business of Business Schools (San Francisco: Jossey-Bass, 1999), p. 111.

  9http://www.businessweek.com/stories/1993–08–08/harvard-b-school-outmoded-or-at-the-head-of-its-class.

  10David Leonhardt, “California Dreamin’; Harvard Business School Adds Silicon Valley to Its Syllabus,” New York Times, June 18, 2000.

  11David Leonhardt, “A Matter of Degree? Not for Consultants,” New York Times, October 1, 2000.

  12David W. Ewing, Inside the Harvard Business School (New York: Crown, 1990), p. 274

  13http://www.mintzberg.org/blog/harvard-19.

  14Henry Mintzberg, Managers Not MBAs: A Hard Look at the Soft Practice of Managing and Management Development (San Francisco: Berrett-Koehler, 2005), p. 118.

  15http://archive.fortune.com/magazines/fortune/fortune_archive/2001/02/19/296894/index.htm.

  16Rolv Petter Amdam, Management Education and Competitiveness: Europe, Japan, and the United States (New York: Psychology Press, 1996), p. 216.