The Golden Passport

by Duff McDonald

  Kramlich, Dick, 322

  Krasnow, Todd, 333

  Kraus, Peter, 476

  Kress, Claude W., 73

  Krishnan, Ananda, 531

  Kristof, Nicholas, 166

  Krugman, Paul, 361

  Kurosawa, Yoh, 153–54

  Kurtz, Howard, 305

  Kurtzman, Joel, 301

  Kwok, Raymond, 531

  labor unions, 32, 56, 76, 78, 161, 166, 386; Capital Cities and, 163; decline of, 163, 165; HBS as anti-labor, 164–65; HBS’s Trade Union Fellowship Program, 151, 160–66, 389; productivity and, 166; Reagan and, 163, 387; Taylorism and, 37; Wagner Act and, 201; weighted language against, 391

  labor workforce: Barnard and, 112–14; Bush 43rd and, 505–6; CEO-to-worker compensation ratio, 165–66, 539, 544; deskilling of, 36; Dewey’s industrial democracy, 79; Donham’s demeaning view of, 62; Hawthorne study, 83–84, 87, 89; income inequality and, 426; industrial autocracy and, 79; Mayo’s theories, 77, 78–80, 82, 83–86, 88, 112, 113, 133, 308, 315; oversight as command-and-control, 31; piece-rate pay, 31, 32, 33; productivity and, 36, 39; redistribution of wealth and, 462; shareholder capitalism and job loss, 371; Taylorism and, 31–32, 36, 40; unemployment drop (1953), 194; union density of, 161; wage stagnation and, 165, 390, 426, 491

  Lack, Jane S., 203

  Lahde, Andrew, 478

  Lamont, Thomas, 26, 42, 67, 69, 142

  Lampel, Joseph, 497, 498

  Lanahan, Jack, 191

  Lane, Fred, 333

  Langdell, Christopher Columbus, 27, 48

  Lapham, Lewis, 218

  Larson, Henrietta M., 237–38

  Last Man Standing (McDonald), 471

  Latin America Research Center, 234

  Laura Spelman Rockefeller Memorial foundation, 80

  Lawrence, Paul, 355

  Lawrence, William, 67, 68

  Lay, Ken, 520, 523–24

  Lazonick, William, 249, 376–78

  leadership: authentic leadership, 311, 315–16, 576; authority, power, and, 317; businessmen and, 109, 133, 141, 196, 197, 294; case method and, 277, 279; case study hero and, 107, 171, 280, 312, 436, 527; corporate, 114 (see also corporate CEO); education, 19, 62, 65, 177; as emergent quality, 197; failure of, in business, 106, 352; Harvard’s Center for Public Leadership, 314; HBR and, 315; HBS alumi and, 2, 46, 143, 168, 180, 191, 209, 236; HBS education and, 1, 2, 6, 8, 65, 133–34, 143, 180, 197, 308–18, 339, 396, 398, 473, 486–87, 503, 577; HBS recruiting for, 196; HBS’s Matsushita Chair, 206; Hill on, 557–58; Hoopes book and, 114, 315; industrial paradigm, 197; Kellerman book and, 197, 310, 314; Mintzberg on, 486–87, 488; moral leadership, 113, 114, 316; Pfeffer book and, 314; qualities, 314; theory of, 567; thought leadership, 307; West Point and, 45

  Leadership BS (Pfeffer), 314

  Learned, Edmund, 118, 137, 138, 258, 267, 279, 355

  Learson, T. Vincent, 289

  Leavitt, Harold, 382

  LeBoutillier, John, 435, 519

  Lee, Robert E., 18

  Lehman Brothers, 460, 468, 476, 478, 548

  Leibniz, Gottfried Wilhelm, 27

  Lemann, Nicholas, 212

  Lemmon, Jack, 186

  Leonhard, David, 494–95

  Lerner, Josh, 378

  Lever Brothers, 106, 142, 149, 168, 171, 197, 289

  Levine, David, 380

  Levinson, Harry, 150; Institute, 409

  Levitt, Theodore, 145, 156, 261–63, 296; as HBR editor, 299–301

  Levy, Leon, 477

  Lewis, Harry, 406, 407

  Lewis, Howard T., 197

  Lewis, Jeanne, 333

  Lewis, Ralph, 296

  Light, Jay (dean), 502, 545, 546, 547, 549; “Change Is in the Offing,” 551

  Lindsey, Lawrence, 522

  Lineback, Kent, 314

  Linsalata, Linda, 332

  Lippmann, Walter, 36, 57

  Litton Industries, 192, 292, 456

  Livernash, E. Robert, 232

  Livingston, J. Sterling, 290–92

  Locke, Robert, 232–33, 447–48, 451

  Lodge, Henry Cabot, 16

  Loeb, Dan, 534

  Lombard, George, 118, 137, 355

  London Business School, 226, 232, 539

  Lonely Crowd, The (Riesman), 184, 185–86, 350

  Long-Term Capital Management, 475

  “Long Term Value Creation Principles” (Aspen Institute), 541–42

  Lords of Strategy, The (Kiechel), 36, 258

  Lorsch, Jay, 355, 502, 572

  Love, George H., 96

  Lovell, James A., 157

  Lowell, A. Lawrence, 11, 44, 55, 121; ethics and, 433; as Harvard president, 18, 81; HBS as graduate school and, 11; HBS building fund, 67; letter to Taussig, 16–17

  Lowell Institute, 111

  Luce, Henry, 295

  Lufkin, Dan, 128, 467–68, 469

  Lying (S. Bok), 337

  Lynton, Michael, 534–37

  Mace, Myles L., 137, 222, 265, 266, 324, 325

  Mackey, John, 363

  Macomber, John, 202

  Mad Men (TV show), 350

  Madoff, Bernie, 515

  Magretta, Joan, 317

  Makihara, Minoru, 157

  Malkiel, Burton, 411

  Malott, Deane W., 234–36

  Malott, Robert, 106

  management: American model, 342–52; as art, 65, 114, 225, 257, 258, 259, 376; Barnard’s theory, 112–14; as brains; workers as brawn, 36, 40; consulting industry and, 199–212; control as core of, 115–19; cost-cutting vs. creation and, 36; decision-making model, 60, 214, 215, 260, 269, 286, 339, 434, 456; Donham’s governing elite, 62, 141; efficiency and, 35, 36; entrepreneurial, 319–33, 456; era of the professional manager, 190; executive pay, 367, 371–72; experience vs. education, 292, 397; failures of management accounting, 297; faith in, 1949, 167; financialization and, 270, 271; as Friedman’s agent, 360–64, 366; as Galbraith’s technostructure, 270, 342; generalism and, 247, 448; goals of, 35; industrial paradigm of leadership, 197; Japanese managerial models, 310–11; leadership vs., 308–18; managerial capitalism and the Company Man, 132, 144, 182–87, 247, 250; the managerial caste, 270–71, 342; Mayo’s theories, 79, 84–88, 90; MBAs dominating, 447; mechanistic solutions and, 215–17; modern information systems, 40; moral leadership and, 389; numbers people vs. people people, 36, 441–51; as Pareto’s elite, 113; postwar economic boom and, 170; professional manager and separation of ownership and control, 56; profitability and, 35, 145 (see also shareholder value); property rights ideology, 390; public confidence in, decline, 356; quantitative model, 117, 273–74, 365–82, 434, 450; Rockefeller on, 373; Roethlisberger and function of, 89; role of the professional manager, 60; “science” of, 35, 37, 38, 39, 78, 86, 212, 214–15, 225, 250, 257, 286, 418, 434; short-termism and, 346, 347, 373, 466, 469; social responsibility of, 59, 360–64, 385; strategic and operational, 415; Taylor’s contributions, 38–41; as teachable skill, 61, 351; as technocrats, 60, 268, 390, 391; thought leadership and, 307, 415; universal laws lacking, 37–38, 39; U.S. economic decline and, 344–52, 358. See also managerialism

  Management Accounting: Text and Cases (Anthony), 118

  Management and the Worker (Roethlisberger and Dickson), 85

  “Management Century, The” (Kiechel), 542–43

  Management Myth, The (Stewart), 31

  Management of New Enterprises (Bollinger and Day), 326

  Management Succession in Small and Growing Enterprises (Christensen), 326

  “Managerial Ideology in Collegiate Business Education, The” (Sass), 286

  managerialism, 183, 233, 250, 281, 356, 383, 454; capitalism and, 384–85; decline and demise of, 384–91; defined, 384; institutionalization of, 451–52; murder of, 365–83, 385, 454 (see also Jensen, Michael)

  “Managers and Leaders: Are They Different?” (Zaleznik), 308–9, 315

  “Manager’s Job, The” Mintzberg, 483

  Managers Not MBAs (Mintzberg), 483, 497

  “Managing Our Way to Economic
Decline” (Abernathy and Hayes), 346–49, 443, 452

  “Managing the Myths of Healthcare” (Mintzberg), 421

  Manchester Business School, 232

  Man in the Gray Flannel Suit, The (film), 186

  Man in the Gray Flannel Suit, The (Wilson), 186

  manufacturing, 10, 13; American (1949), 144; Germany and Japan, 344–45, 347, 350; HBS grads and, 460; gutting of, 368–69; loss of U.S., 343–44; management elite and, 465; MBAs in, 254; megacorporations and, 288; quality slippage in, 344, 350; Toyota vs. U.S., 450, 452; wartime, 139, 147

  Manzi, Jim, 406

  March, James, 220

  Marcinkus, Paul Casimir, 157

  Marcus, Herbert, 96

  Marcus, Stanley, 96, 192

  Mark, J. Paul, 153, 155, 203, 205, 206, 208, 402, 403

  Mark, Rebecca, 514

  marketing, 168, 286

  “Marketing Myopia” (Levitt), 261–63, 296

  Markkula, Mike, 320

  Marriott, Richard, 401–2

  Marshall, George, 229

  Martin, Boyce F., 234

  Martin, Roger, 235, 283, 363–64, 419, 461

  Massachusetts Institute of Technology (MIT), 25, 121, 124, 244; Sloan School of Management, 80, 309, 392, 394

  Masters of Private Equity and Venture Capital, The (Finkel), 127

  Matsushita, Konosuke, 206; HBS endowed chair, 205–6

  Matsushita Leadership (Kotter), 409

  Matthews, John, 436

  May, George O., 26

  Mayers, Frank, 169

  Mayo, Anthony, 350

  Mayo, Elton, 37, 76–90, 111, 118, 186, 222, 244, 308, 355; as fraud, 78, 88; Hawthorne study, 83–85, 87, 88; at HBS, 81–90, 93; human relations movement, 217; “The Mayo Weekend,” 90; Rockefeller funding, 81, 82–83, 90; theories of, 77–80, 84–86, 112, 113, 133, 212, 315

  MBA Oath, 565, 567–68

  MBAs: Amazon and, 10, 90; Champion article and, 552; class of ’49, 167–74; critics of, 210, 290–92, 483–89, 564–65; Enron and, 512–17; ethical lapses and, 437; “failure equals success,” 172; financial crisis of 2007–10 and, 546–53, 566; in Galbraith’s “technostructure,” 342; HBS grads as most desirable, 356, 461; innovation and, 120–21; Jensen and erosion of higher ideals, 382; MBAs awarded, 144, 217, 461; McKinsey and, 199, 202, 206, 207–8, 338, 460, 474, 548–49; need for questioned, 494–95; postwar economic boom and, 180; running America, 276, 289 (see also Bush, George W.); salary increase, 383; Schwarzman on, 470–71; six problems of, 292; students enrolled as, 150; Thiel’s opinion of, 120; U.S. institutions offering, 193; weakness of, 194–95; women, 203; working on Wall Street, 10, 96, 359, 369. See also alumni; Wall Street

  MBAs Across America, 1, 3, 9

  “MBA’s Defense of His MBA, An” (Champion), 552–53

  McArthur, John (dean), 155, 163, 208, 299, 301, 327, 332, 338, 339–40, 370, 402, 403, 463, 500, 574; alumni awards and, 458; board memberships, 341; on Bok report, 340; campus renovations, 458–59; HBR editorship, 299, 301; hiring Jensen, 370, 378, 455; impact on HBS, 454–56; Matsushita Chair and, 205–6; POM group and, 456; Porter and, 414; Shad’s endowment and, 431; teaching entrepreneurship, 327–28; University Professorship to honor, 495; on U.S. economic decline, 346; Wall Street and, 466

  McCance, Henry, 323

  McCarthy, Joseph, 183, 184

  McClelland, David, 559–60

  McClure, Robert B., 124

  McColough, Peter, 169, 171, 174, 177

  McCormack, Mark, 172

  McCourtney, Rod, 322

  McCraw, Thomas, 61, 204, 245, 246, 249, 377

  McDermott, Robert, 192–93

  McDonald, Al, 209

  McDonald, Duff, 471

  McDonald, John, 194, 245

  McDonough School of Business, Georgetown University, 235

  McElroy, Neil, 191, 289

  McFarlan, Warren, 332

  McGill University, 259, 483, 485, 488, 552, 573

  McGlade, Jacqueline, 230

  McGowan, William, 262

  McGraw-Hill, 262, 295

  McKenna, Christopher, 200, 203, 210

  McKenna, Regis, 300

  McKim, Mead & White, 69, 74

  McKinsey, James O., 93, 116, 117, 201

  McKinsey & Company, 3, 6, 44, 93, 105, 116, 132, 142, 143, 184, 186, 241, 254, 275, 289, 299, 321, 337, 338, 416, 419, 556; appearance of employees, 205; average HBS grad pay, 203, 207; The Consultants’ Coloring Book, 186, 204; Enron scandal and, 512–13; financial crisis of 2007–10 and, 548; General Motors and, 246; Gupta and, 211, 212; HBS and, 199–212; hiring of HBS grads, 199, 202, 206, 207–8, 338, 460, 474, 548–49; MBAs at, 202; non-MBAs at, 210, 494; Skilling at, 513, 514, 518; women hired, 203

  McKinsey Quarterly, 299, 538

  McLean, Bethany, 517

  McMullin, Ruth, 302

  McNair, Malcolm, 49–50, 178, 279, 355; outside consulting work, 401

  McNamara, Robert S., 3, 137, 138, 254, 264–76, 289, 519; criticism of, 271; as exemplifying HBS teachings, 269; Ford president, 138, 268–71; at HBS, 264–65; In Retrospect, 274; Office of Systems Analysis, 272; Planning Programming Budgeting System, 272; Secretary of Defense, 271–76; statistical approach to war, 273–74, 275; Vietnam War, 273–74, 276; Whiz Kids and, 266–68; World Bank president, 275; World War II, 265

  McPherson, Meredith, 331

  Meadow, Scott, 333

  Means, Gardiner, 56, 93, 131–32, 244

  Meckling, William, 366, 368

  “Meeting the Challenge of Disruptive Change” (Christensen and Overdorf), 303

  Mellon, Andrew, 105

  Mellow, Craig, 63

  Merck & Company, 106–7

  Merkle, Judith, 40

  Merrill Lynch, 460, 476, 548

  Merton, Robert C., 495, 550

  Mettler, Suzanne, 542

  Meyer, John, 356

  Micklethwait, John, 60, 130

  Microsoft, 199, 500–502

  Mikitani, Hiroshi, 531

  Milken, Michael, 120, 379, 380, 431

  Mill, John Stuart, 50

  Miller, Jeffrey, 283

  Mills, C. Wright, 188–90, 196, 197, 219, 388

  Mills, Karen, 238

  Minto, Barbara, 203, 241

  Minto Pyramid Principle, 241

  Mintzberg, Henry, 260, 262, 263, 416, 417, 421, 483–89, 497–99, 552–53, 573; HBS grads as failed CEOs, 497–98; recommendations, 488

  “Misapplication of Mr. Michael Jensen, The” (Dobbin and Jung), 381

  Mitchell, Lawrence, 550

  Mitsubishi Corporation, 157

  Mizruchi, Mark, 313, 385–86, 391

  Mobilization Analysis Center, 139

  Modern Corporation and Private Property, The (Berle and Means), 56, 93, 131–32

  Modern Times (film), 41

  Molloy, Ernest, 289

  Money and Class in America (Lapham), 218

  Monitor Group, 299, 403, 406, 409, 418–21, 423, 460, 461; consulting for repressive regimes and, 405–7, 420; HBS connections, 419

  Montag, Tom, 476

  MOOCs, 287, 572, 573

  Moon, Youngme, 238, 557, 569

  Moore, Ann, 241

  Moore, Gordon, 320

  Moral Background, The (Abend), 68

  Morgan, J. P., 28, 69, 72, 73, 105

  Morgan, J. P., Jr., 77

  Morgan Stanley, 455, 460

  Morgens, Howard, 190–93, 195

  Moriarty, Rowland, 332

  Morison, Elting, 244

  Morrison, Roger, 202

  Moss, David, 249

  Motivation, Productivity, and Satisfaction of Workers, The (Zaleznik et al), 308

  Munger, Charlie, 480, 482

  Murphy, Kevin, 371, 375

  Murphy, Liam, 540

  Murphy, Tom, 51, 76, 163, 169, 170–71, 172

  “Musings on Management” (Mintzberg), 483

  “Myth of the Well-Educated Manager, The” (Livingston), 290–92

  My Years with General Motors (Sloan), 194, 245

>   Nader, Ralph, 523

  Nakamura, Kaneo, 153–54, 157

  Nanda, Ashish, 235–36, 521–22

  Nash, Laura, 436

  National Football League (NFL), 403

  National Research Council, 80, 83

  Nature Conservancy, 561

  “Nature of Man, The” (Meckling and Jensen), 368

  Networks and Organizations (Nohria), 559

  “Never Overestimate the Power of the Computer” (Lewis), 296

  Nevin, John, 493–94

  “New Capitalism” movement, 87

  New Enterprises and Small Business Management (Day and Donham), 326

  Newhall, Chuck, 322

  New Industrial State, The (Galbraith), 342

  New Jersey Bell Telephone, 111

  New Yorker, 516–17, 534; article on MBAs in consulting firms, 212

  New York Stock Exchange, 469, 476

  New York Times: article on Ackman, 480; article on Romney, 507; Bok looking for new dean, 337, 338; on Burke, 526; Cabrera in, 551; Clark quote, 500; conflict-of-interest policies, 404–5; David’s statement, 141; exposé of Amazon, 90; Frei on women MBA students, 569–70; gender equity at HBS, 570, 571; HBS as a golden passport, 1; HBS grading differential, 241; HBS online learning articles, 572–73; on HBS’s TUP, 160; Jensen interview, 381; Khurana in, 550; Kristof report, 166; LeBoutillier editorial, 435; Leonhard’s article, 494–95; on Levitt, 263; Martin article, 461; Material Service bribing of state officials, 346; on MBAs at McKinsey, 210; McArthur cancels interview, 341; Mintzberg interview, 485; Morgens in, 191–92; Porter’s article, 362; Shad op ed, 431–32; Stahlman’s article, 301; Tufano on Enron, 520

  New York Times Magazine, 345, 360

  Nixon, Richard, 354, 469, 507

  Nohria, Nitin (dean), 17, 51, 52, 157–58, 194, 261, 331, 350, 408, 559, 564–74, 577 ; board memberships, 574; case method and, 565–66; digital learning, 571–74; fund-raising, 532, 533, 535, 536; inclusion as goal of, 241; “It’s Time to Make Management a True Profession,” 306, 439, 566; MBA Oath, 565, 567–68; salary of, 532; women at HBS and, 569–71

  Norquist, Grover, 505–6

  Norton, David S., 44, 444

  Noyce, Bob, 320

  Obama, Barack, 238; Obamacare, 384

  Ochs, Adolph S., 105

  O’Donnell, Joseph, 162

  Official MBA Handbook, The, 461

  “Of Harvard, Elitism, and Amorality” (LeBoutillier), 435

  Olsen, Kenneth H., 126

  Olsen, R. Paul, 283

  O’Neal, Stan, 548

  One Market Under God (Frank), 57, 161, 490

  Organization Man, The (Whyte), 144, 184, 350