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News and insights for the MIT Sloan community

MIT Sloan Sum

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Course XV Centennial Celebration

The Politics of Climate Change

SOLVING COMPLEX BUSINESS PROBLEMS THROUGH THE MIT EXECUTIVE MBA

CreativeStrategy

Creative

This academic year, MIT Sloan celebrated the centennial of the founding of Course XV. In recognition of this exciting time, we are

featuring special anecdotes and images from the School’s history—including a sample of the top innovations from MIT Sloan—

throughout the magazine as we celebrate our past, discuss the present, and look toward the future.

For more information on the 100-year anniversary, and to share your own MIT Sloan story, visit http://mitsloan.mit.edu/100years.

MIT Sloan Spring 2013

Use your smart device to access MIT Sloan’s home page.

MIT SloanNews and insights for the MIT Sloan communityVol. 8, No. 2

dean David SchmittleinJohn C Head III Dean

senior associate dean, external relations and international programsKristina Gulick Schaefer

managing editorsCatherine CanneyKristin LeClair

production editorJennifer Montfort

concept and designRobert Beerman, Onward Upward

contributors Michele Choate, Zach Church, Mikhail Glabets, L. Barry Hetherington, Mark Keene, Rebecca Knight, Kim Nguyen, Bryce Vickmark, Katie Zorzos

Historical photographs courtesy of the MIT Museum.

proofreaderLinda Walsh

printingLane Press

MIT Sloan is published by the MIT Sloan Office of External Relations in partnership with the MIT Sloan Office of Communications. Read the MIT Sloan Alumni Magazine onlinehttp://mitsloan.mit.edu/alumni/publications/magazine/

Visit the MIT Sloan home pagehttp://mitsloan.mit.edu/

Change of addressMIT Sloan Office of External Relations 77 Massachusetts Avenue, E60-200Cambridge, MA 02139Email: [email protected]

Contacts For subscription information, permissions, and letters to the editor, contact our editorial staff. Phone: 617-253-7164Email: [email protected]

Social MediaFollow us on Twitter (@MITSloanAlumni) and on Facebook (/MITSloanAlumni) for news and updates from campus and our alumni around the world.

Insi

de

n the 1950s, the MIT Sloan Fellows Program field trips took MIT Sloan to the USSR. The trips were spurred

by the interests of Dr. Jermen Gvishiani, a student of Western management and head of the Soviet Committee for Science and Technology, who forged a cooperative learning agreement with Dean Howard Johnson and Associate Dean Peter Gil. Through student exchanges, both sides gained valuable insight into their respective management cultures. Despite the CIA urging the School to discontinue the visits during the height of the Cold War, the State Department viewed MIT Sloan’s relationship with the Soviets as advantageous, so the visits continued. For a long time, MIT Sloan was the only Western school with relationships in the USSR.

I

Above: William Pounds, Abraham Siegel, and Peter Gil in Moscow, early 1970s.

Course XV Centennial Celebration

Get a glimpse of the celebrations that recognized 100 years of management education at MIT on campus and around the world.

innovation at work

Christopher R. Knittel:The Complicated Politics of Climate Change

Professor Knittel examines the economics of U.S. environmental policies, and why the most effective policies in reducing emissions may not be the most attractive to lawmakers.

feature story

Creative Strategy

When the co-founders of veteran video game studio Vicarious Visions, Guha and Karthik Bala, faced their most complex business challenge, they decided the EMBA program at MIT Sloan was their next step. Learn how that decision helped steer the company to an unprecedented critical and commercial success.

departments

2 Message to Our Alumni

3 Letter from the Dean

4 MIT Sloanscape

35 Class Notes

50 In Memoriam

15

22

24

On the cover: Guha and Karthik Bala, EMBA ’13, and the characters from Skylanders: Swap Force.

Summer 2014MIT Sloan2

M E S S A G E T O O U R A L U M N I

Embarking on the Next 100 Years

Kristin LeClairDirector, Donor Relations and Communications

Catherine CanneyAssociate Dean, Dean’s Initiatives and Brand Strategy Catherine Canney

dear mit sloan alumni and friends, As the Centennial Celebration of Course XV draws to a close, we hope this issue will encourage a bit more reminiscing about the history of Course XV at MIT and move forward into the next century.

We’ve enjoyed bringing you pieces of the School’s history that reflect on the activity of the past 100 years, and we are happy to present more selections in this issue. As we celebrate that history, we look to the future. Whether learning about the business of Vicarious Visions, co-founded by the Bala brothers who are recent graduates of the MIT Executive MBA program, or sharing research findings from faculty members Chris Knittel, Zeynep Ton, and Tavneet Suri, we find the work of the School, students, and alumni around the world to be innovative—indeed, transformative.

The MIT Sloan community is far-reaching, diverse, inventive, and collaborative—this is visible in the activity we see on campus and in the conversations we have had with more than 2,000 people who attended one of our Course XV events around the world (see page 15). Whether or not you had the opportunity to attend, please consider visiting the interactive Centennial timeline and share your stories about MIT Sloan with the community: http://mitsloan.mit.edu/100years/.

Finally, in this issue, you also will learn about the newly launched MIT Sloan Alumni Board and its co-chairs, Tom and Banu Atkinson, both SM ’94. They will lead a group of over 30 alumni who are committed to bringing the alumni community together in support of the work of the School and one another. They want to hear from you, so please be in touch to share ideas, perspectives, and opportunities.

We hope that you find this issue as compelling as we do.

With best regards from Cambridge,

Cathy & Kristin

MIT Sloan 3Summer 2014

L E T T E R F R O M T H E D E A N

Dear Alumni and Friends of MIT Sloan, This academic year has been extraordinary. Across the campus and around the globe, our community has gathered to celebrate the 100th anniversary of management education at MIT. Reflecting together on our history, we have developed a growing sense of excitement for our future. We have also defined our responsibility to one another and to future generations of MIT Sloan—we must sustain and protect our very worthy mission as MIT’s School of Management.

This issue of MIT Sloan offers excellent examples of how we sustain our mission. We recruit outstanding faculty who develop the ideas and insights that change the world, such as energy economist Christopher Knittel (page 22). We attract and admit talented, innovative, and passionate students like the Bala brothers (page 24). In the interview with Professor Edward Roberts (page 6), we trace the career of an amazing thought leader and successful entrepreneur who has mentored thousands of MIT students.

You, our alumni, protect our mission by investing your time and philanthropic efforts in the School. Our Annual Fund is on track to break all previous records. The MBA student class gift total has already surpassed its previous high mark. We have a record number of alumni coming back to campus to take part in reunion and the concluding celebration of our centennial year. Similarly, this year more of you attended MIT Sloan events and programming than ever before.

As we conclude this centennial year, please join me in recommitting to our School, with renewed passion for what we can accomplish together today and in the future.

Warm regards,

David SchmittleinJohn C Head III Dean

MIT Sloan

M I T S L O A N S C A P E

4 Summer 2014

MIT SloanscapeJackson W. Goss Fellowship Program Created at The Martin Trust Center for MIT EntrepreneurshipA generous $5 million gift from the Anne Goss Foundation, established by Anne and the late Jackson (“Jack”) Goss, has enabled the creation of the Jackson W. Goss Fellowship. The gift will provide educational and financial support for promising student entrepreneurs from MIT and beyond to pursue their business ideas full-time on campus.

The Goss Fellows will receive workspace, funding, mentoring, and instruction to develop their startup ideas as part of the MIT Global Founders’ Skills Accelerator (MIT GFSA), a summer program that runs from June through August. The first class of Goss Fellows will be students selected for the summer 2014 MIT GFSA program.

“The Goss Fellows will hone their business ideas by learning the theory, frameworks, methods, and techniques of innovation-driven entrepreneurship,” said Bill Aulet, managing director of the Martin Trust Center for MIT Entrepreneurship and a senior lecturer at the School. “Our goal is to produce a new generation of highly prepared and well-connected entrepreneurs capable of creating businesses that solve some of the world’s greatest challenges.”

Jack Goss was a native of Lamar, Missouri, who fought in the Battle of the Bulge and was a decorated

Bill Aulet, Managing Director, Martin Trust Center for MIT Entrepreneurship; Richard Cosnotti, Managing Trustee, Anne Goss Foundation; Steve Sciaretta, Goss Family Attorney and Longtime Family Friend; David Schmittlein, John C Head III Dean; and Fiona Murray, Associate Dean for Innovation, Alvin J. Siteman (1948) Professor of Entrepreneurship, Faculty Director, Martin Trust Center for MIT Entrepreneurship, and Co-Director, MIT Innovation Initiative

war hero in his youth. He later had a long and successful career in the investment management industry; he was a partner at Putnam Management Company in Boston, and served as the president of Investor Mortgage Insurance, which he helped build into a $6 billion insurance operation. Goss passed away in December 2013.

“Jack constantly emphasized the need to improve society by utilizing the most powerful force the world has ever seen: capitalism,” said Aulet.

“To do this most effectively, Jack believed you needed to take teams of strong, disciplined individuals, provide them with expert training, and also give them the time and space to experiment. Such is the credo with which Jack so successfully lived his life, and such is the legacy that the Jackson W. Goss Fellows will carry forward.”


This book appears to be about workforce issues. But it’s really about developing operational excellence.When I studied companies that offered good jobs to their employees, low prices to their customers, and great returns to their investors, all at the same time, I found that the key to doing all this was operational excellence. The good jobs strategy is a blend of investment in people and four operational choices that ensure a great return on that investment in people. One of those four choices is to offer less. Companies that follow the good jobs strategy offer fewer products to their customers. They do so because they find it to be the most sustainable way to provide superior returns to their investors.

I say this to my students all the time. Companies can certainly make money not following the good jobs strategy. But especially in service industries, bad jobs lead to frustrated customers, lost sales, and lower long-term profits. Bad jobs also cause a lot of suffering for people who have them. We live in a country where more than 45 million people are poor. And bad jobs are not necessary, even if we want low prices.

You’re an operations specialist. How did you end up writing a book about the workforce?During the first several years of my academic career, I focused on problems that had to do with supply-chain literature. I was seeing that even in companies where the back end of the supply chain works so well, the front end—the stores—didn’t work so well. As I was studying these problems, I started interviewing people and collecting and analyzing data. I began to

see that inventory problems were often caused by people. Stores that had high employee turnover and less training had more problems. Companies would spend millions of dollars on supply-chain technology only to have the ball dropped in the last 10 yards.

At some point, I started connecting the dots between the business problem and the social problem of having millions of people with bad jobs, and I thought that it shouldn’t have to be this way. We know that if you want to be exceptional operationally, it has to be through a combination of operational design and people.

Every large company out there professes to offer good jobs. They can’t all be that good, right?There are some big companies that say they provide good jobs, but it’s absolutely not true. Especially in low-cost services, they don’t see labor as an asset, but as a cost, an interchangeable part, and workers feel that.

We desperately need more companies to follow the good jobs strategy. It’s not an overnight thing, but I hope the evidence in this book will encourage some companies to follow the strategy. On a different note, if the minimum wage were to be raised to a high enough level, it may compel some companies to adopt the good jobs strategy, as they find ways to make workers more productive and more central to their success.

There is compelling evidence that companies following this strategy perform really well. We need executives with the courage to pursue these strategies.

The Good Jobs Strategy: A Q&A with MIT Sloan’s Zeynep Ton

In The Good Jobs Strategy: How the Smartest Companies Invest in

Employees to Lower Costs and Boost Profits, published in January, Zeynep Ton, adjunct associate professor of operations management, delves into more than a decade of research about retail and service companies. She argues that even in low-cost businesses, good jobs are good not only for employees, but also for customers and employers.

Q

and

Zeynep Ton, Adjunct Associate Professor of Operations Management

Perspectives from alumnus and long-time faculty member Edward Roberts, SB ’57, SM ’57, SM ’60, PhD ’62, David Sarnoff Professor of Management of Technology, Founder and Chair, Martin Trust Center for MIT Entrepreneurship

The Department and School were small in faculty and student body and most of the subjects were quite quantitatively oriented. Course 15 in the 1950s and ’60s, both undergrad and grad, was more or less a quantitative industrial engineering program, with various aspects of management as “add-ins.” The student body was almost

MIT Sloan


6 Summer 2014

The Insider Perspective: Six Decades at MIT Sloan

n the mid-1950s, I began taking undergraduate subjects in Course 15 as overloads in my MIT Course 6 (EE) schedule. This continued until 1958, when I came over to work with Jay Forrester in starting System Dynamics, registering for classes as a Course 15 Master’s student, finishing that degree in February 1960, and then continuing on to my PhD studies in economics.

entirely male Americans, mainly with technical backgrounds, and very little work experience except for the then small Sloan Fellows Executive Program. Today, we are a very different place.

I watched and participated as MIT Sloan transformed into a strong theory-and-practice “real” management school, with male and female

I

Perspectives from alumnus and long-time faculty member Edward Roberts, SB ’57, SM ’57, SM ’60, PhD ’62, David Sarnoff Professor of Management of Technology, Founder and Chair, Martin Trust Center for MIT Entrepreneurship


Edward Roberts, through the decades.

students drawn from all over the world. Students now come with varied educational backgrounds and rich work experiences in industry and government, from large firms and entrepreneurial startups. The programs the School offers are now quite diverse. A faculty member might teach marketing to undergraduates and a few days later lecture to 41-year-old EMBAs. But at all levels, the students today are much smarter and far more experienced than we were 55 years ago, with knowledge coming from their own years of work and from interactions with each other.

Since coming to MIT Sloan as a full-time RA in 1958 and then joining the faculty as an assistant professor in 1961, I have devoted the rest of my life to multiple areas of research, teaching, and outside related action. It has been my good fortune to participate in three revolutionary developments that have produced great consequences.

Together, a small number of us created System Dynamics from scratch—the ideas, tools, techniques, classroom materials, practical applications—and brought it to the world. We raised the bar on how comprehensive and complex managerial problems might be tackled and resolved, and affected managerial thinking about large-scale issues. That System Dynamics pioneering continues today.

Nearly concurrently in 1962, with NASA funding, we launched the first major business

school attack on managing research, development, and technology-based innovation. Our research studies persuaded large industrial firms and government agencies to change the way they organized, funded, and directed R&D people, projects, and programs. With the creation of the MIT Management of Technology (MOT) program, MIT’s first educational effort with degrees granted by both the Engineering and Management Schools, our research and teaching methods were adopted by over 200 universities worldwide, creating lasting global impact.

Next, we initiated an ambitious program in cross-campus entrepreneurship that brings potential MIT Sloan company founders into contact and collaboration with their technology counterparts. Over the years the recruited faculty’s teaching and research grew apace, and, even more impressively, the student activities contributed to MIT alumni launching an economic miracle of job-providing new enterprises. Today, MIT Sloan is unique among management schools as a leader in stimulating rigor-based innovative entrepreneurship. New companies are created each year, by younger and younger entrepreneurs, with each one increasingly likely to found multiple companies over his or her lifetime. And in doing this with the rest of MIT as partners, MIT Sloan’s example inspires and instructs the world.

We raised the bar on how comprehensive and

complex managerial problems might be tackled

and resolved, and affected managerial thinking

about large-scale issues.

MIT Sloan


8 Summer 2014

P

Donald Hughes Shaw, SM ’60, research assistant with his wife, 1960.

Donald Hughes Shaw, SM ’60, research assistant with his wife, 1960.

MIT Africa Fellows Program

rofessor Carroll Wilson ’32 launched the MIT Africa Fellows Program in 1960 to address the significant lack of

middle managers in Africa who could assist the newly established government ministries in running day-to-day operations. The program was a means to “making the concepts taught at MIT more relevant to the needs of developing countries” and “to have the Fellows, themselves receiving valuable practical experience, also serve as teachers.” This approach was used 40 years later as the basis for MIT Sloan’s ongoing work in Africa via the GlobalHealth Lab.

Map of the African continent showing countries with Sloan Fellows in residency, including former locations, The MIT Fellows in Africa 1964–1965, Alfred P. Sloan School of Management.

s e e n a n d h e a r d

“Opening up new areas of inquiry is still the task that MIT’s faculty set for themselves. This continuous innovation is still the badge of honor.” David SchmittleinCentennial Roadshow, Northern CaliforniaMarch 18, 2014


New Alumni Board Aims to Improve Alumni Engagement The MIT Sloan Office of External Relations (OER) announces the creation of the MIT Sloan Alumni Board—a new volunteer opportunity dedicated to enhancing and expanding the MIT Sloan alumni network through engagement and philanthropic giving.

The mission of the MIT Sloan Alumni Board is to expand the global visibility of the MIT Sloan School of Management through the activities of a more connected and engaged alumni community. The Board will enhance relationships among alumni, students, and the School by encouraging participation in worldwide MIT Sloan events, volunteer opportunities, and the MIT Sloan Annual Fund.

Headed by Co-chairs Tom and Banu Atkinson, both SM ’94, the MIT Sloan Alumni Board is composed of two separate committees—the Alumni Network Committee and the Dean’s Circle Committee. These two focus areas were identified as being among the most important areas to increase participation in the alumni network, with plans to expand the committees in the future.

The Alumni Network Committee, chaired by Ruby Chandy, SB ’82, SM ’89, includes: Clara Brenner, MBA ’12; Rachel Carter, MBA ’11; Carter Dunn, MBA ’10; Marisa Gerla, MBA ’12; Natalie Karpov, MBA ’04; Karen Mazer, SM ’89; Bob Meese, MBA ’08; Zeeshan Mirza, MBA ’99; Sean Padgett, MBA ’98; Lisa Schirf, MBA ’02; Yiting Shen, MBA ’07; Ruth Sommers, SF ’01; Philip Van Overberghe, MBA ’97; Edward Walsh, EMBA ’13; and Isa Watson, MBA ’13. The committee will begin its analysis of regional alumni engagement by examining the current MIT Sloan club structure, recommending policies that will

create sustainability for regional clubs, and evaluating what meaningful engagement means to alumni around the world.

The Dean’s Circle Committee is chaired by Aliza Blachman O’Keeffe, SM ’90, and includes: Karthik Bala, EMBA ’13; Joshua Brown, MBA ’06; Craig Edelstein, SF ’06; Jean Elliott, MBA ’97; Hala Fadel, MBA ’01; Justin Guichard, MBA ’05; Kerry James, SB ’95, MBA ’01; Tong Lee, SM ’86, SM ’87; Ronnie Lee Thomas, SM ’94; David Menachery, MBA ’09; Pamela Pudar, SM ’90; Din Shih, SM ’93; Eric Silverman, SM ’91; Alejandro Simkievich, MBA ’03; and John Tobin, EMBA ’13. This committee will perform an audit of MIT Sloan Annual Fund communications, identify new ways to increase education and awareness of philanthropy within the alumni network, and encourage participation in the Dean’s Circle, the School’s leadership giving society.

“We see what a strong alumni community can achieve in terms of a lifelong network of friendships and professional support,” says Tom Atkinson. “[The MIT Sloan Alumni Board]’s goal is to develop a global alumni community where its members both value and benefit from its existence. The alumni community should value it so much that they can’t wait to get involved in events at MIT Sloan, give their time and resources, and see the value of philanthropy at MIT Sloan. It’s a virtuous cycle, not only for the School, but for alumni as well.”

During the 2013–14 academic year, David Schmittlein, John C Head III Dean, welcomed to campus six industry leaders from a variety of fields and backgrounds to share their career paths with MIT Sloan students. From Carlos Brito’s lessons on the importance of a positive work environment to Ann Fudge’s ideology of placing ethics above all else, students engaged in dialogue and learned from firsthand experiences about different aspects of leadership.

Dean’s Innovative Leader Series

Carl Bass, President and Chief Executive Officer, Autodesk, Inc.

Carlos Brito, Chief Executive Officer, Anheuser-Busch InBev

Ann Fudge, Former Chairman and Chief Executive Officer, Young & Rubicam Brands

Steve Rusckowski, SM ’84, President and Chief Executive Officer, Quest Diagnostics

Severin Schwan, Chief Executive Officer, Roche Group

Thomas M. Siebel, Chairman and Chief Executive Officer, C3 Energy

Mostafa Terrab, SM ’82, PhD ’90, Chairman and Chief Executive Officer, OCP Group

Co-sponsored by:

MIT Leadership Center

MIT Sloan Office of External Relations

Light Lunch

11:30 AM

MIT Sloan School of ManagementDean’s Innovative Leader SeriesConversations with innovative leaders who improve the world

Anheuser-Busch InBev is the

leading global brewer, with over 200

beer brands including Budweiser,

Corona, and Stella Artois. Having

recently completed its combination

with Mexico's Grupo Modelo, Mr.

Brito will discuss why people are

the company's only sustainable

competitive advantage and how

AB InBev's culture continues to drive

performance around the world.

ThursdaySeptember 19, 201312:00 PM

Wong AuditoriumTang Center (E51)

Carlos BritoChief Executive Officer Anheuser-Busch InBev

Culture Igniting Performance

Co-sponsored by:



Light Lunch

11:30 AM


With the genomic revolution, we

are on the verge of translating the

molecular understanding of diseases

into new medicines for patients.

At the same time, development

costs, regulatory hurdles, and

pressure from healthcare systems

are increasing rapidly. Dr. Severin

Schwan will discuss how Roche

addresses these challenges through

rigorous focus on innovation.

TuesdayNovember 19, 201312:00 PM


Severin SchwanChief Executive Officer Roche Group

Innovate or Bust

Co-sponsored by:

MIT Sloan O�ce of External Relations


Light Lunch

11:30 AM


Mr. Rusckowski has focused on

transforming the company, based on its

compelling vision of ‘‘Empowering better

health with diagnostic insights.’’ Under his

leadership, the company has refocused on

its core diagnostic information services

business, sold non-core assets, delivered

disciplined deployment, including

share repurchases and acquisitions,

and simplified its organizational

structure to better serve customers by

removing complexity, speeding decision

making and empowering employees.

ThursdayMarch 6, 201412:00 PM


Steve Rusckowski, SM '84 President and CEO Quest Diagnostics

Empowering better health with diagnostic insights.

Summer 2014

Mr. Rusckowski has focused on

transforming the company, based on its

compelling vision of ‘‘Empowering better

health with diagnostic insights.’’ Under his

leadership, the company has refocused on

its core diagnostic information services

business, sold non-core assets, delivered

disciplined deployment, including

share repurchases and acquisitions,

and simplified its organizational

structure to better serve customers by

removing complexity, speeding decision

making and empowering employees.


Co-sponsored by:



Light Lunch

11:30 AM


Having served in leadership positions

in four successful technology startup

companies including Oracle, Gain

Technology, Siebel Systems, and

C3 Energy, Mr. Siebel will share

his thoughts about the ideation,

planning, and operation of successful

information technology companies.

FridayOctober 11, 201312:00 PM


Thomas M. SiebelChairman and CEOC3 Energy

New Business Formation

With the genomic revolution, we

are on the verge of translating the

molecular understanding of diseases

into new medicines for patients.

At the same time, development

costs, regulatory hurdles, and

pressure from healthcare systems

are increasing rapidly. Dr. Severin

Schwan will discuss how Roche

addresses these challenges through

rigorous focus on innovation.

Co-sponsored by:



Light Lunch

11:30 AM

ThursdayMarch 6, 201412:00 PM


Steve Rusckowski


Co-sponsored by: MIT Leadership Center MIT Sloan O�ce of External Relations

Light Lunch

11:30 AM


Join the MIT Sloan community in an

interactive conversation with Ann

Fudge, former Chairman and CEO

of Young & Rubicam Brands. One of

the youngest leaders named to the

Fortune list of the 50 most powerful

women in business, Ms. Fudge was

also the first African American

woman to head a major American

advertising firm. Don’t miss this

opportunity to hear Ms. Fudge

discuss her thoughts on leadership.

WednesdayNovember 13, 201312:00 PM


Ann Fudge Former Chairman and CEO Young & Rubicam Brands

A Conversation with Ann Fudge

Co-sponsored by:



Light Lunch

11:30 AM


Carl Bass is president and CEO of Autodesk,

the leader in 3D design, engineering and

entertainment software. Customers across

manufacturing, architecture, construction, and

media and entertainment industries—including

19 consecutive Academy Award winners for

Best Visual Effects—use Autodesk software

to design, engineer, and simulate their ideas

before they're ever built or created. Under his

leadership, Autodesk has expanded rapidly to

offer new products and deliver design and

engineering technology through the cloud.

Bass is a maker and spends his spare time

making things—from chairs and tables to

boats and most recently an electric go-kart.

WednesdayApril 2, 201412:00 PM


Carl Bass President and CEO Autodesk, Inc.

Imagine. Design. Create.

Co-sponsored by:



Light Lunch

11:30 AM

MIT Sloan School of ManagementDean’s Conversations with innovative leaders who improve the world

TuesdayNovember 19, 201312:00 PM


Severin SchwanChief Executive Officer Roche Group

Innovate or Bust

Co-sponsored by:



MIT Sloan O�ce of International Programs

Light Lunch

11:30 AM


For the past 8 years, Dr. Terrab has led

a top-to-bottom transformation of OCP

from a state administration to a modern

corporation that is a global leader in the

fertilizer sector and the world’s largest

exporter of phosphate. The leadership

lessons at the core of this transformation

continue to drive OCP’s corporate

strategy, its growing global presence,

and its commitment to sustainable

development and shared value both in

Morocco and across the African continent.

MondayFebruary 10, 201412:00 PM


Mostafa Terrab, SM '82, PhD '90 Chairman and CEO OCP Group

Global leader in the phosphate sector

Summer 2014MIT Sloan


10

Learning on the Road: Alumni Conferences 2014

“As you’ve heard over the last two days of the conference, there is certainly more emphasis on going to where the patients are–moving away from the brick and mortar of our clinics and hospitals, and going out into the community to provide services to patients in a variety of new settings.”

Thomas Kochan, Professor of Engineering Systems, on “Managing Organizational Changes in Health Care Systems”

MIT IMPACT: Making Innovation RealSan Francisco, CAFebruary 13, 2014

“Filling the pipeline and stopping it from leaking is critical to having a healthy innovation economy. We can’t afford

to leave any talent behind, and we need, as a matter of economic competitiveness and reducing inequality, to

make sure anybody who has something to contribute as an innovator has the opportunity to do so.”

Mitch Kapor, Founder of Lotus Development, on Entrepreneurship and Equal Opportunity

Alumni came together around the world to discuss faculty research, share industry insights, and contribute to the mission of MIT Sloan to improve the world. Below is a sampling of thoughts shared at the conferences this year.

MIT Innovations in Health CareCambridge, MADecember 3–4, 2013

Summer 2014 MIT Sloan 11

“We call ourselves ‘mindful optimists.’ If we understand the problems that we’re facing and the opportunities that we’re facing and take the right actions, I think we could have a really, really good outcome. This could be the best thing that ever happened to humanity. But at the same time, we recognize there’s no automatic good outcome. That is going to depend very much on our choices and the kinds of policies that we have in terms of education, fostering entrepreneurship, and tax policy.”

Erik Brynjolfsson, Director of the Initiative on the Digital Economy, on The Second Machine Age

Boston Finance ForumBoston, MA

May 16, 2014

“The need for rigorous financial analysis of public policy has never been greater, and MIT is ideally positioned to take on this important task.”

Robert C. Merton, PhD ’70, Nobel Laureate and School of Management Distinguished Professor of Finance, on the Center of Finance and Policy

MIT and the Digital Economy: The Second Machine AgeNew York, NYApril 4, 2014

36 MIT AND MIT SLOAN

ALUMNI SPEAKERS

11CONFERENCES

306STUDENT

ORGANIZERS

5,818ATTENDEES

A sample of conferences:MIT Sloan Women In Management ConferenceMIT Energy ConferenceMIT Venture Capital ConferenceMIT Sloan Sports Analytics ConferenceMIT Sloan Africa Business Conference

Student Conferences by the Numbers(2013–14)

As a complement to their coursework, MIT Sloan students often explore a specific field, topic, or geographic area through the organization of student conferences. Each year, student groups organize and host a variety of conferences on campus, providing forums to share ideas, network, and pose questions for the future, while at the same time gaining valuable leadership experience beyond the classroom.

Shanghai Finance ForumShanghai, China

July 19, 2013

Summer 2014MIT Sloan


12

2014 Class Gift: Q&A with the Committee Co-Chairs

Each year, graduating students across MIT Sloan programs

provide important and lasting support in the form of the Student Class Gift. Supporting the MIT Sloan Annual Fund, the gift helps to ensure that the next generation of Sloanies will share in the exceptional experiences made possible by philanthropic support. We asked the EMBA and MBA Class Gift co-chairs to reflect upon their MIT Sloan experience, and why being involved in the Class Gift was important to them.

Why was it important for you to be involved as a leader for the 2014 Student Class Gift?

Karim Ghachem, EMBA ’14: I never saw the point in doing something in life if I couldn’t share an experience with someone else or find ways to contribute to those who have supported me. The MIT Executive MBA program and my classmates have given me so much that it is a privilege and an honor to give back to Sloan and the MIT community that has helped each of us grow and bridge our experiences.

John Ghirardelli, MBA ’14: I view the Student Class Gift as one of those events that, from an MBA perspective, is the chance to put your money where your mouth is. I’m very proud of where I went to graduate school, and I’m committed to maintaining and improving the community for generations to come.

Dina Kazzaz, MBA ’14: I chose to take a break from my career and come to MIT Sloan because I was ready for new personal and professional challenges. I wanted to meet new people who would inspire me, to learn from professors who would equip me with new tools, and to immerse myself in an environment that would encourage me to explore new opportunities and possibilities. The Student Class Gift is a way to say “thank you” to those who were generous enough to build this incredible place and to fill it with world-class professors and students.

Why do you think it’s important to start a tradition of philanthropy while still a student?

Maja Omanovic, MBA ’14: Giving is difficult—especially when you have student loans. For philanthropy to work, it has to come from the heart. It is not about giving outside of your means. It is about giving because you care. If you start early, philanthropy can and will become a habit.

Dina Kazzaz, MBA ’14: I view philanthropy as a way to create opportunity for others. As a graduating class, we have this opportunity to contribute to the experiences of others, and there is no better time to do so than now. Even as students, we can make a difference and should feel empowered to do so. I don’t believe there is ever a perfect time to give or a right amount. Every little bit helps and will be used toward supporting the mission of MIT Sloan—to create principled leaders who will transform the world.

Diana Brennan, EMBA ’14: While everyone’s experience at MIT Sloan is unique, regardless of which program you are in, the journey to obtain your degree is truly life changing. As I approach a status change from student to alumna, I recognize how important it is to give back to MIT Sloan in order to enhance the ecosystem that has so positively shaped my life over the last two years. Why wait to give back? Making a gift now, as a current student, is an investment in MIT Sloan that furthers the School’s excellent reputation and, ultimately, my lifetime alumni experience.

Tell us how your time at Sloan has changed your life.Moe Khosravy, EMBA ’14: I mean it when I say that this experience has

been life changing! The material has made me a better leader, innovator, and general manager. The network that resulted from my time at MIT Sloan has created more opportunities than I ever thought possible, and it spans the globe.

Maja Omanovic, MBA ’14: I came here eager to learn, and MIT Sloan delivered on its promise. I came across professors who had truly transformed how I view and understand the world around me. My classmates broadened my horizons and enriched my academic experience. But most important, I made friendships that will last a lifetime. I will be leaving MIT Sloan a little bit wiser and a few friends richer.

John Ghirardelli, MBA ’14: MIT and MIT Sloan have opened the door to new opportunities and experiences, both professionally and personally. This is a special community that is difficult to appreciate from the outside looking in—you have to experience it personally. Great things happen here. Passion and drive reside throughout the student body. Change and impact result every day from people willing to make a difference. I am a better person, businessman, and leader as a result of coming here.

Q

and

Left to right: John Ghirardelli, MBA ’14; Maja Omanovic, MBA ’14; and Dina Kazzaz, MBA ’14

Summer 2014

for them because they’re known, the elders know them, and they’re in the community.”

Suri, whose work in sub-Saharan Africa covers issues in agriculture, household finance, and political participation, among other topics, hopes her findings will contribute to a body of research that can help direct policy in Africa.

“Ultimately, our goal is to improve welfare in some way in developing countries,” Suri said. “The idea is to create good, rigorous evidence on things that have a bearing on policy.”

To read the full paper, visit: http://www.mit.edu/~tavneet/Marx_Stoker_Suri.pdf

“Even in places where you don’t have formal institutions, informal institutions arise,” said Suri. “People raise a structure and say, ‘I own this structure and therefore I have rights, and I have enough rights that I can rent it.’ So these informal institutions arise and they have big consequences.”

Suri and her team surveyed residents, chiefs, and elders across Kibera’s roughly 3.75 square miles. The results reveal a socioeconomic system that finds favoritism along ethnic lines and sees roles for everyone from government-appointed administrators to street gangs.

Results of the survey are presented in “There Is No Free House: Ethnic Patronage and Property Rights in a Kenyan Slum,” a working paper by Suri; Thomas M. Stoker, Gordon Y Billard Professor in Management and Economics and professor of applied economics at MIT Sloan; and Benjamin Marx, a PhD student in the MIT Department of Economics.

The researchers found that when Kibera landlords share a tribe with the area chief, residents see higher rents by a measure of six to 11 percent. And when residents themselves share a tribe with their chief, rents will be lower by the same percentage.

They also found that areas of the slum with a high gang presence saw less egregious increases in rent. This may be because gang members, although often violent criminals, act as proxies for residents in disputes.

“It seems they protect people’s rights against landlords in some places,” Suri said, “they’re able to enforce some better behavior.”

Working in Kibera was not easy for the research team. “Every week in the field, we had an incident,” she said of the nearly yearlong project. But Suri, who is Kenyan, has been managing research teams in Africa since 2007 and has been studying the continent for a decade. “I think what’s happened over time in the slum that’s amazing is that our survey staff became known by the elders,” she said. “So over time, it’s gotten much safer

In 2012, Tavneet Suri, Maurice F. Strong Career Development Professor and associate professor of applied economics, led a team of researchers in Kibera—Africa’s largest slum located in Kenya’s capital city of Nairobi—to study how rents are set and how home improvements are made.

MIT Sloan 13

Tavneet Suri, Maurice F. Strong Career Development Professor, Associate Professor of Applied Economics

Defining Property Rights in Kenya

“Ultimately, our goal is to improve welfare

in some way in developing countries.”

Honor the past, invest in the future

Your planned gift plays a crucial role in keeping MIT Sloan at the forefront of management education in the decades to come. Planned gifts fund innovative new programs and research and ensure that tomorrow’s students have the opportunity to bene�t from a transformative MIT Sloan education. Tailored to your unique �nancial and philanthropic needs, gifts can be structured to provide immediate income, as well as long-term benefits such as estate tax savings.

A planned gift celebrates the important role MIT Sloan has played in your life, and makes an impact that lasts for generations.

For more information on planned giving, visit: http://mitsloan.mit.edu/alumni/give/planned-giving

INVEST in INNOVATIONPLANNED GIVING AT MIT SLOAN

BEQUEST – CHARITABLE GIFT ANNUITY – DEFERRED GIFT ANNUITY – CHARITABLE REMAINDER UNITRUST

COURSE XV CENTENNIAL CELEBRATION


WHAT’S YOUR STORY?

Help us celebrate the Centennial of Course XV—and your contribution to our community—by adding your favorite MIT Sloan memories to our interactive timeline. Visit http://mitsloan.mit.edu/100years/our-stories/

This academic year, MIT Sloan recognized a milestone 100 years of management education at MIT through a series of events. The year started in July with the launch of the Centennial Roadshow, with Dean Schmittlein circling the globe to bring our alumni stories from the School’s past. In April, students, faculty, and staff gathered for a birthday party on campus, while alumni clubs around the world held their own celebrations from Boston to Thailand.

Videos, pictures, and more from these events can be found on a special centennial website that includes an interactive timeline chronicling Course XV historical milestones and alumni stories. To learn more about the yearlong celebration, visit http://mitsloan.mit.edu/100years/

MIT Sloan Summer 2014

C O U R S E X V C E N T E N N I A L C E L E B R A T I O N

CI T I E

S

18

16

NOVEMBER 7, 2013BOSTON, MASSACHUSETTSMARCH 17, 2014

SEATTLE, WASHINGTONAPRIL 16, 2014CHICAGO, ILLINOIS

MARCH 18, 2014SAN FRANCISCO, CALIFORNIA

MARCH 19, 2014LOS ANGELES, CALIFORNIA

NOVEMBER 20, 2013NEW YORK, NEW YORK

NOVEMBER 21, 2013WASHINGTON, D.C.

APRIL 17, 2014HOUSTON,TEXAS

APRIL 30, 2014JUNE 7, 2014CAMBRIDGE,MASSACHUSETTS

Throughout the 2013–14 academic year, Dean Schmittlein circled the globe, sharing stories from the history of Course XV while providing a glimpse into the future of management education at MIT Sloan with alumni and friends.

DECEMBER 12, 2013SÃO PAULO, BRAZIL

COURSE XV ROADSHOW

DECEMBER 11, 2013SANTIAGO, CHILE

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OU N T R I

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SEPTEMBER 17, 2013 PARIS, FRANCE

OCTOBER 21, 2013SEOUL, SOUTH KOREA

OCTOBER 22, 2013BEIJING, CHINA

OCTOBER 16, 2013TOKYO, JAPAN

OCTOBER 18, 2013HONG KONG, CHINA

SEPTEMBER 19, 2013 LONDON, ENGLAND

JULY 16, 2013SINGAPORE, REPUBLIC OF SINGAPORE

DECEMBER 12, 2013SÃO PAULO, BRAZIL

PH O T O

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ALUMNI, STUDENTS

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COURSE XV CENTENNIAL CELEBRATION

On April 9, 2014, students, faculty, and staff gathered on campus to celebrate the founding of Course XV a century ago. Dean Schmittlein led guests in a salute to the School, asking them to: “Enjoy a toast in memory of those leaders of Course XV through this 100-year history that produced such amazing results, and to all of you, who will invent the future of management at MIT.”



“AS STUDENTS, YOU QUITE RECENTLY DECIDED THAT YOU WOULD CHOOSE TO BELONG TO MIT. WHEN YOU CAME HERE, YOU LET YOURSELVES BE SHAPED BY THIS DISTINCT PURPOSE, AND SOON YOU WILL GRADUATE AND YOU WON’T BELONG TO MIT. MIT WILL BELONG TO YOU.”

– DAVID SCHMITTLEIN

Throughout the month of April, alumni clubs

celebrated MIT Sloan’s birthday in style.


An Army of Sloanie Tims!over 500 Alumni

21 Clubs

6 Countries

3 Continents

christopher r. knittel is the William Barton Rogers Professor of Energy Economics at the MIT Sloan School of Management and the Co-Director of the Center for Energy and Environmental Policy Research at MIT.

The Complicated Politics of Climate ChangeChristopher R. Knittel

I N N O V A T I O N A T W O R K

he White House Climate Assessment released in May brought new scientific evidence that climate change is, indeed, a real and present problem. However,

there are no good economic arguments against cap and trade being the most efficient and effective policies to reduce greenhouse gas emissions. And, there are no good environmental arguments against them either.

Yet Congress continues to rely on expensive policies that both subsidize low carbon fuels— namely ethanol, and make little dent in the greenhouse gas emissions that contribute to climate change. Why do lawmakers persist in passing these laws? The answer is simple: It’s not politically advantageous for them to do anything else.

The political economy of climate change policy—driven by the diverse financial, regional, and ideological interests of Congress and coupled with a determined industry—is exceedingly complex. Alternatives to cap and trade are costly. According to my research* they are 2.5 to 4 times more expensive, but they exhibit a feature that

makes them attractive to some lawmakers: a skewed distribution of gains and losses where many counties have small losses, but a smaller share of counties gain considerably—as much as $6,600 per capita annually. For certain legislators, this translates into big campaign contributions from stakeholders who stand to benefit. The result is an environmental policy held hostage by political interest groups.

This is business as usual. But in light of the uncertainty about the greenhouse gas emissions of biofuels, there are environmental reasons to be concerned about. While some studies find ethanol from corn has lower greenhouse gas emissions than gasoline, others are more cautious. One study argues that once we take into account land-use changes—soil erosion, groundwater contamination, and habitat destruction—emissions from ethanol may exceed the greenhouse gas emissions of gasoline.

Until a few years ago, cap and trade was the preferred policy tool for handling many environmental problems. The policy is a market-driven system that imposes a ceiling on the pollutant, while allowing companies to buy and sell permits to comply. It had its big debut over two decades ago when it was

T


launched as a way to address airborne sulfur dioxide pollution, or acid rain, from coal-burning power plants. It was deemed one of the most effective environmental initiatives in history. But now, in the aftermath of the global recession and a stop-and-start economic recovery, the policy has fallen out of favor.

Instead of cap and trade, lawmakers employ alternatives that equate to little more than explicit or implicit subsidies for biofuels. These include: the Renewable Fuel Standard, which requires renewable fuel to be blended into petroleum in increasing amounts each year; the Low Carbon Fuel Standard, a California law that requires producers of petroleum-based fuels to reduce the carbon intensity of their products over time; and direct subsidies to ethanol.

My colleagues and I simulated a transportation- sector cap and trade program along with the three alternative policies currently in use. We used agricultural data and ethanol production models to reproduce prices, quantities, and changes in private surplus at the county level. We also simulated the market for gasoline for the United States in 2022.

Our findings paint a stark picture. Under cap and trade, average abatement costs of greenhouse gases are $20 per metric ton of carbon dioxide ($/MTCO2e). Costs under the alternative policies are $50 to $80 per MTCO2e. Alternatives also differ in the yearly per-capita gains and losses across counties. With subsidies, 5 percent of counties gain more than $1,250 per capita, while one county gains $6,600 per capita. In contrast, the 95th percentile county under cap and trade gains $70 per capita, with no county gaining more than $1,015 per capita.

Nationally, the average person loses $30 per capita under subsidies, but the average county gains $180 per capita. Under the Renewable Fuel Standard, the average person loses $34, while the

average county gains $160. Under cap and trade, the average person loses only $11 per year, but the average county gains less than $3 per capita.

To test whether our results translate into political incentives, we examined our estimates against Congressional voting on the Waxman-Markey climate and energy bill, a cap and trade measure. The bill contained a new accounting of ethanol carbon emissions that would substantially weaken the Renewable Fuel Standard. We find that, holding a district’s per-capita cap and trade gains and a House member’s party affiliation constant, the greater the district’s Renewable Fuel Standard gains, the less likely the House member voted for Waxman-Markey. In other words: rather than focusing on the big picture goal—the societal benefit of tackling climate change—members of Congress were swayed by dollars leaving their districts. (The bill passed in the House, but was defeated in the Senate.)

Economists have long known that the most efficient way to reduce the inefficiencies that arise from pollution is to put a price on it; if you want less pollution, raise its price. A carbon tax does this directly; cap and trade does this through the price of permits. The problem with the alternative policies is that they both subsidize and promote (potentially) less greenhouse gas intensive products despite the fact that they still emit pollution.

Unfortunately, our work suggests a reason why some politicians are loath to put a price on pollution: The inefficient policies they favor instead create huge windfalls for their home districts. ...

“Some Inconvenient Truths About Climate Change Policy: The Distributional Impacts of Transportation Policies”; Stephen P. Holland, Jonathan E. Hughes, Christopher R. Knittel, Nathan C. Parker. Forthcoming in The Review of Economics and Statistics.

Joining NASA’s Orbit

n 1962, NASA administrator James Webb approached former Dean Howard Johnson and formed a research partnership to study the organization and management of large-scale R&D. (Read a first-person account from Edward Roberts on page 6.) The

MIT Sloan program that grew from the NASA project in the early 1960s soon evolved into the academic group known as the Technological Innovation and Entrepreneurship Group (TIE). For more than 50 years, the work of TIE faculty (now merged with the Strategy Group into TIES) has changed how the world thinks about innovation—how innovation is taught, how innovation is best employed in the real world, and the power of innovation to propel the transformation of products and businesses.

IMIT Sloan program that grew from the NASA project in the early 1960s soon evolved into the academic group known as the Technological Innovation and Entrepreneurship

IHoward Johnson (left), second dean of the School of Industrial Management (1959-66), with Penn Brooks (right).

Why do lawmakers persist in passing these laws? The answer is simple: It’s not politically advantageous for them to do anything else.


*

Spring 2014MIT Sloan24

F E A T U R E S T O R Y

Summer 2014

Creative


By Zach Church

With Skylanders: Swap Force,

veteran video game studio

Vicarious Visions took on its

most complex, challenging, and

creative product to date. How

co-founders Guha and Karthik

Bala used the MIT Executive

MBA program to steer their

company to massive critical

and commercial success.

Creative Strategy

uha and Karthik Bala entered the MIT Executive MBA program in the fall of 2011, just as Skylanders: Spyro’s Adventure was hitting shelves.

Spyro’s Adventure, a video game in which players use toys to connect with the game, was a smash among children ages 6-12. The brothers’ video game studio, Vicarious Visions, collaborated

with Skylanders’ creators to develop the game for the Nintendo 3DS.

Vicarious Visions’ parent company, Activision, followed up with a sequel in 2012. And Vicarious Visions led the series’ 2013 release, Skylanders: Swap Force. Earlier this year, Activision announced the Skylanders franchise had earned $2 billion and sold more than 175 million toys.

All the while, the Bala brothers were traveling back and forth from their upstate New York offices to Cambridge for the MIT Executive MBA program. There, they developed a cohort of peers and faculty as well as the business and leadership acumen they needed to build on Skylanders’ incredible success.

“For me, it was this notion that I’m getting really good at what I know, but is that all I should be thinking about?” Guha Bala says. “We set a mission for ourselves. It’s about becoming a great entertainment company by shaping popular culture through games. And to be able to reshape popular culture requires a much greater awareness than just the creative product. How do you think about the creative idea, but also your organization and the firm relative to the industry and relative to the world as well? For me, it was clear that I didn’t have that perspective yet.”

The 20-month MIT Executive MBA program is designed for mid-career executives at pivotal junctures in their careers. Students visit MIT every third Friday and Saturday and for four weeklong modules. The curriculum runs the gamut from applied economics to competitive strategy to operations management, negotiations, and system dynamics. There are two Action Learning projects: Operations Lab (O-Lab), in which students use their new skills and knowledge to undertake change at their organizations; and Global Organizations Lab (GO-Lab), in which teams of students advise a global firm on a challenging project or decision.

Most of the approximately 70 students in each class take on the executive MBA with little to no decrease in their work responsibilities. The Bala brothers didn’t have the luxury of handing off Vicarious Visions while they attended school.

“Skylanders: Swap Force is by far the biggest, most complex product we’ve ever built,” Karthik says. “It’s had

G


The 20-month MIT

Executive MBA program

is designed for mid-career

executives at pivotal

junctures in their careers.

the largest success of any single product in our studio’s history. And it’s one of the highest-rated games. And I think it’s in part because we stepped back. We could be a lot more strategic in thinking about the business, allowing people to grow in terms of talent development. And this is after 20 years of making games. I think the [EMBA] program really allowed us to take that step back.”

TIME AWAYVicarious Visions was founded in Guha and Karthik Bala’s parents’ Rochester, N.Y. basement in 1991, while the brothers were still in high school. Eventually, Karthik would attend Rensselaer Polytechnic Institute (RPI) in Troy, N.Y. Vicarious Visions would grow there, residing first in an on-campus business incubator and later in a building owned by RPI. Michael Marvin, an entrepreneur and investor who worked with RPI startups, invested in the company with a “handshake deal,” stipulating that Vicarious Visions would stay in New York State’s Capital District, Karthik Bala said.

In 1999, the Bala brothers assembled a board that included Marvin and S.P. Kothari, who today is deputy dean and an accounting professor at MIT Sloan. The board pushed the two young developers to build a foundation for their company, schooling the pair on accounting, organizational structure, and cultural development. In 2005, they sold the company to Activision, where it is now a wholly owned subsidiary. The next year Vicarious Visions set up shop in a 40,000 square foot former Montgomery Ward building


Summer 2014

At MIT Sloan, the brothers

learned from and worked with

faculty whose guidance had

an immediate impact on their

business and the development

of Skylanders: Swap Force.

MIT Sloan28

in Menands, N.Y., just down the Hudson River from Troy. Today, the company employs about 200 people, a mix of full-time employees and some contractors.

“It was a garage operation initially, but to some extent they were looking forward and they were thoughtful about it,” says Kothari, who lived next door to the Bala family while he taught at the University of Rochester, and Guha and Karthik were still teenagers. “And to some extent, they got lucky in getting Mike Marvin.”

Kothari served on the Vicarious Visions board until the 2005 sale. But the three stayed in touch and as Vicarious Visions grew, Kothari thought the brothers (who were “precocious from the outset”) would benefit from formal, high-level business training. He suggested they apply to the MIT Executive MBA program.

“If you want to innovate, if you want to do something big, you have to make yourself idle,” Kothari says. “To think of a big idea, to do something innovative, something new, something dramatic, you need to spend time thinking, reflecting, investing in understanding technology, understanding markets. Whatever it is, different people might do it differently, but nonetheless an essential element is to set aside some time, have some different views to soak into your mind.”

“I said ‘You are too busy doing it on a day-to-day basis. You need some time away.’”

As the stakes were raised for Vicarious Visions, Kothari thought it was important that the brothers step away from the video game industry and out of the relatively small Capital District business community.

“They had colleagues [at Activision and Vicarious Visions], but really they had subordinates most of the time. And in a true sense of the word, they had colleagues at the executive MBA program who were comparably bright and came from a variety of disciplines,” Kothari says. “And that give and take, I think, sharpened their thinking. It also gave


VICARIOUS VISIONS’ GREATEST HITS

2000After a decade of small projects and false starts, Vicarious Visions releases Terminus, a massive, complex space RPG for PC. A labor of love, the game is a critical success and commercial disappointment. However, the game wins major awards at the first-ever Independent Games Festival.

Vicarious Visions figures out how to modulate sound on the Game Boy Color, allowing the machine to “talk.” The first breakout hit was Spider-Man for Game Boy Color.

2001Another milestone in technological innovation. Tony Hawk’s Pro Skater 2 is the first to introduce 3D graphics on a handheld/mobile video game system. A multimillion-unit seller, the game is a commercial and critical success, earning a prestigious BAFTA Interactive Entertainment award.

2005In a break from kid-centric games, the company develops Doom 3 for Xbox. A high-profile project, it earns rave reviews for its graphics and technical innovation.

them confidence. There was a sense of a ‘You have arrived’ type of feeling that they had at the end of it.”

Karthik agrees. In his Executive MBA classmates, he found a new network of peers from leading companies in a diverse set of industries.

“We’ve got folks at Activision who are our peers, but it’s a different kind of relationship,” he says. “Here, you’ve got an actual peer network that’s not in your business. You can get advice and support, and you’ve got confidants there where you can really lay it out. ‘These are problems I’ve been having. These are issues that we’re facing organizationally. These are personal challenges that I have, balancing family and work and school.’ That support system was crucial. As we stay in touch with each other, we continue to rely on that. I’m talking to classmates almost every week.”

At MIT Sloan, the brothers learned from and worked with faculty whose guidance had an immediate impact on their business and the development of Skylanders: Swap Force.

Review sessions with Professor Scott Stern helped them to develop their mobile strategy. In Professor Retsef Levi’s operations management class, they crafted a plan to streamline the creative process for the development of Swap Force’s unique characters. At the time, only about 10 percent of character ideas developed in the Skylanders franchise

were being approved, an understandably low number given the high creative standards of the project and the central role that characters play to the game. But those high standards were creating a bottleneck.

“[Approving characters] just wasn’t possible given the resources and time frames we were working on,” Guha says. “In Retsef’s ops class, we went through process flow, and in O-Lab we looked at the process.”

“We were able to reconfigure the work, so we had an entirely different approach to how we were conceptualizing how we processed characters,” he says. The brothers were able to increase throughput and significantly reduce lag on character creation and approval.

The Action Learning portion of the program had an immediate impact on Vicarious Visions as well. Karthik says he used stakeholder mapping and analysis he learned in O-Lab to fix a problem that left one of his lead creative directors unreasonably charged with managing development schedules along with the expectations of Activision’s top executives.

“It used to be a much more implicit approach to strategy where through know-how and experience we learned how to do things that would deliver a result,” Guha says. “But it’s really hard to build an organization that consistently does

2007Vicarious Visions develops Guitar Hero III: Legends of Rock for the Wii platform. Guitar Hero goes from being a cult hit to a mainstream, pop culture phenomenon. Guitar Hero III achieves the landmark status of the first video game ever to earn over $1 billion in revenue.

2008With Guitar Hero: On Tour, Vicarious Visions brings the blockbuster music game series, along with a Guitar Grip peripheral, to the Nintendo DS handheld.

2011A behemoth is born. Activision releases Skylanders: Spyro’s Adventure. Vicarious Visions develops the Nintendo 3DS version and develops the underlying technology for the franchise.

2013Over two years in development, Vicarious Visions introduces customizable action figures with swappable parts. Skylanders: Swap Force becomes an instant mega-hit, the studio’s biggest seller to date.

Summer 2014MIT Sloan30

that.” The MIT Executive MBA program, he says, “really highlights the importance of working on the business, not just working in the business. And that sometimes your proximity to it can be negative.” In their GO-Lab projects working with global companies, the brothers said they saw qualities in themselves that don’t normally appear in day-to-day work at Vicarious Visions, a powerful learning experience for the pair.

“GO-Lab gives you a different way of solving these problems,” Guha says.

ENTER DISNEYIt’s rare to make $2 billion without someone else looking for a piece of the action. In August of 2013, just after the Bala brothers finished the MIT Executive MBA program, Disney released Disney Infinity, a game similar to Skylanders. Where Skylanders had original characters like Wash Buckler, a squid-pirate hybrid, and Rattle Shake, a Cajun rattlesnake, Disney had familiar characters like Woody and Buzz Lightyear from Toy Story.

Despite being first to the field in what is known as the toys-to-life category, Vicarious Visions and Activision “have a formidable challenge ahead of them to be able to maintain that market position,” says Stern, who taught the Bala brothers in the executive MBA program’s competitive strategy course.

For Stern’s class, Guha Bala developed a Porter five forces analysis—a competitive strategy model developed by Harvard Business School professor Michael E. Porter—of the video game industry that laid out the stakes: “The top 10 titles account for 60 percent of revenue. Ultimately, the top

few releases make the lion’s share of profits and the rest are forgotten.”

The cost of video game development is notoriously hard to pin down, but it has increased remarkably in the past 20 years. Mid-90s hits may have cost as little as $5-$10 million to make. Today, big games are estimated to cost more than $60 million to develop. The Wall Street Journal reported last year that Disney Infinity development and toy production costs topped $100 million.

Meanwhile, mobile and web games, free and low-price games, and the relatively slow development timelines for home console games have made the market an even more challenging place to turn a profit. (The advent of downloadable content, known as DLC in the industry, offers a bright spot for profits. Game publishers can sell add-ons such as new characters or tools that don’t come with the original game.)


In his five forces analysis, Guha concluded that publishers and developers must constantly innovate, not only by developing new and popular creative games, but also by reexamining the video game market.

Market leaders like Activision must “focus on making distinctive products not easily substituted by other media,” Guha wrote, and expand “the scope of the business model to experiment with alternative means of bundling and monetizing entertainment experiences to reduce the cost to produce and the entry price for consumers.”

Skylanders does all of that. The central innovation—that gamers buy toys to access new characters and areas of the game—raised the ceiling on revenue per customer and helped Activision enter the action figure market. Today, Skylanders figures sell better than both Star Wars figures and Transformers figures combined, Karthik Bala says.

With Skylanders: Swap Force, the toys became two toys. That is, a toy’s top half can now be swapped onto another toy’s bottom half. Mix Wash Buckler with Rattle Shake and you get Wash Shake, or Rattle Buckler, or both. The toy halves connect through magnets, which also amplify the RFID signal that allows the game to send information back to each half of the toy.

There are 16 Swap Force characters so far. That’s 256 swapping combinations. There are also retailer-specific figures. Dark Wash Buckler, for example, is a GameStop exclusive available as part of a Sony PlayStation 3 starter pack. The Skylanders video games are not just video games. They are also personalized toy collections. There is a lot of money in the toys-to-life industry, so it is no surprise that Disney came calling.

Stern found Vicarious Visions’ Disney problem so compelling that he developed it—along with RJ Andrews, MBA ’13, and lecturer Don Sull—as a case study for students

in MIT Sloan’s MBA and Executive MBA programs.The case, “Activision Defends the Skylands,” was a hit

with students, many of whom undertook detailed game theory analysis when developing answers. The Balas visited the competitive strategy MBA class last year to discuss the case with students and examine the best solutions.

Stern credits the Bala brothers with a willingness to incorporate insights from others into their work on Skylanders. He also says they were intent on using quantitative analysis to inform their decision-making and on integrating their competitive strategy with the management and organization of Vicarious Visions, positioning the company for success as the market for Skylanders evolves.

At MIT Sloan, the pair “were developing the capabilities that allowed them to make strategic choices that allowed them to manage the competition and manage the growth of the market around the toys-to-life category,” Stern says.

“One thing that they’ve been very smart about is choosing their battles with Disney wisely,” he says. “An instinct that you might have is that they have to beat Disney head-to-head. Another is that, as we teach in cases like Coke/Pepsi, there’s probably room in the market for more than one toys-to-life platform.”

At MIT Sloan, the pair “were

developing the capabilities that

allowed them to make strategic

choices that allowed them to

manage the competition and

manage the growth of the

market around the toys-to-life

category,” Stern says.

FAMILY BUSINESSJust over 10 years ago, Vicarious Visions was given the opportunity to develop the Xbox version of Doom 3, the latest game in the landmark, violent first-person shooter franchise. It did, and with good reason: many people at the company had grown up playing the Doom franchise and it was an opportunity to showcase the company’s talent on a big stage.

But it didn’t come without some hand wringing.“That was something we talked about,” says Jan-Erik

Steel, a 12-year veteran of Vicarious Visions. “We weren’t strictly all kids games, but we didn’t want to be doing overly violent games. There’s always an opportunity to say, ‘How do we feel about music games? How do we feel about kids games?’ It can be hard for some people to do a kids game for that young of a demographic, 6 to 12. I know for me and a lot of other people, it’s amazing.”

The Xbox version of Doom 3 garnered strong reviews, especially for the visual effects and audio work Vicarious Visions brought to the game. But the company has swung away from blazing guns and gory monsters. It’s not prudishness. (“I play everything,” Guha says.) With game development costs skyrocketing along with advances in technology, video game publishers and developers seek to stake out ground in a particular game vertical and use that space to build a brand and set a high barrier to entry for competitors, Guha wrote in his five forces analysis.

And in Skylanders the company has found a good cultural fit, one that builds on Vicarious Visions’ historical

emphasis on creativity and technological innovation as well as the experience of its team and leaders. Both Guha and Karthik Bala are in their late-30s. Between them, they have five children ranging in age from 2 to 8. Even its location informs the company’s culture. The Capital District, as the cities and suburbs around Albany, N.Y. are known, offers everything large cities offer: education, culture, a relatively stable economy, all at a scaled-back pace. It’s a good place to raise a family.

“When we look at the top companies that are sustainable over time, they’re all over in random places,” Guha says. “They’re just great companies that do great creative work and provide a creative environment to their employees.”

The brothers are keeping details of their next projects under wraps for now, but the mission is to “shape popular culture by impacting millions of consumers around the world in a positive way through games,” Guha says. With Activision’s Skylanders revenue in the billions, thinking big is only the starting point. He notes that only about 5 percent of global entertainment spending is on interactive media like video games. So expansion to other markets, such as the action figure market Activision stormed with Skylanders, is a possibility. The Bala brothers say their job is to constantly innovate and iterate to develop creative products that will delight their customers. At first, they did that alone in their parents’ basement. Today, they do it with the weight of Activision behind them and a new outlook on how to grow, change, and lead in their markets.

“How do you become a globally integrated firm, still retaining that independence and autonomy…but be able to produce products, franchises that endure, stuff that’s going to have a legacy and lasting impact across millions and millions of consumers worldwide?” Karthik asks. “That’s the big shift in terms of the kind of business that we’re building.” ...

“We’re about telling good stories and presentation, and all that goes with having a good feeling, family experience. Skylanders was such a perfect fit for us. There’s something there for someone who really wants to create a really immersive and engaging experience that feels like a big cinematic, Pixar-type production.”

– jennifer o’neal, executive producer

“[Hyper-realistic violence] doesn’t always feel that creative anymore. I love when I see footage of our games in between all these other games that are dark and sort of black and gray and all of a sudden you have these bursts of color. We can still treat it with the same reverence and respect as we would with an adult game. We still feel that we push the envelope with the way the underlying technology works.”

– jan-erik steel, lead engineer


Management and Engineering: A Natural Partnership

hen people asked Jay Forrester why he left engineering to go into management his response was simple. “I was already in management. We had been running a several billion-dollar operation in which we

had complete control of everything.”

Forrester’s twofold contributions—his work in computing that provided for the first time reliable, scalable, and affordable memory for computers and his development of the field of System Dynamics—would profoundly influence the work of John D.C. Little and Glen Urban, who would push beyond the tactical operations that computers could perform and apply their power to the consideration of strategic management issues, effectively revolutionizing the world of marketing forever.

WJay Forrester teaching, 1962.


MIT SloanSummer 2014 34

Bernie Horn, SM ’80President, Polaris Capital Management, LLC

ernie Horn has always maintained close ties with MIT Sloan—his friends, professional networks, personal relationships with the

Finance faculty, and his role on the Finance Group Advisory Board (FGAB) keep him close to campus and well informed on new developments in the School’s Finance Group. Further, he maintains that many of the major breakthroughs in finance that were generated by MIT Sloan faculty members have had a big impact on his career path. Horn remarked, “The introduction of the Black-Scholes-Merton options pricing model and the results of research by Andrew Lo, the Charles E. and Susan T. Harris Professor of Finance, had a direct effect on my investment philosophy and strategy.”

It was during an FGAB meeting that Horn was first introduced to the idea of a Center for Finance and Policy. He recalled, “Originally, I wouldn’t have dreamed of this sort of center adding value. I approached the financial world from a more traditional, capitalist mindset. And after MIT Sloan, I went to work in the financial sector, when the government played a minimal role in the overall economy.”

“However as decades passed, we saw our society move toward a mixed economy, where government does exercise influence over finance and banking and permeates the overall economy. My daughter also played a big role in showing me that shift,” reflected

Horn. “After college, she went to work for an organization that researched the effects of policy on investments. And through her eyes and career moves, I began to see the relationship between finance and policy more clearly.”

Horn believes that if such a relationship exists, then “we need to scientifically and analytically understand that relationship. An academic center within the institution of MIT would be the most apolitical and non-partisan way to study the issue.” With that in mind, Horn and his family chose to support the Center for Finance and Policy with funding that will tackle the multilayered challenges facing policymakers and help advance our understanding and management of financial systems. Ultimately, Horn hopes that his support will fuel discoveries that will benefit the next generation of MIT Sloan students, while helping the United States to develop a more effective fiscal policy.

Horn added, “The optimist in me believes that by doing good work and uncovering truth, we can make a difference in the world.”

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Upload new class notes at http://mitsloan.mit.edu/alumni/directory/


C L A S S N O T E S

35

Gerardo A. Borromeo, SB ’82, SM ’83Vice Chairman and Chief Executive Officer,

Philippine Transmarine Carriers, Inc.

hen the MIT Club of the Philippines sought a special gift to commemorate Course XV’s centennial and symbolize

their continuing support of MIT Sloan, their choice was very clear: a glass house.

Gerardo A. Borromeo presented the unique glass sculpture—which represents the Filipino cultural practice of bayanihan—to Dean David Schmittlein in Hong Kong, China, earlier this year on behalf of the club. Bayanihan (pronounced bah–yah–nee–han) evokes the spirit of community through cooperation and use of technology, which struck Borromeo and his fellow alumni as particularly relevant to MIT Sloan. “In the glass house sculpture, the bayanihan spirit is embodied in the coming together of a community to help move a house,” says Borromeo. “I see this spirit of community within MIT Sloan and its evolution through its 100-year history—building a community of professionals who are able to make a difference in the world through effective management practices that leverage people, processes, and technology.”

In his own life, Borromeo credits MIT and MIT Sloan with providing the critical foundations for

his professional accomplishments. “I learned how to think in terms of process flow and dynamic systems, and how to solve complex problems by understanding the fundamental elements that come into play.”

While Borromeo’s ongoing connection to MIT Sloan is deeply important to him, he is also committed to sharing his knowledge for the improvement of his country. “Maintaining a relationship with the School has served as one way to stay connected with the latest trends coming out of MIT, which have contributed in meaningful ways toward global economic development,” explains Borromeo. “This is particularly relevant for alumni in the Philippines, as the country today is emerging from many years of underdevelopment.”

“Networking with MIT has allowed us access to information and resources essential to keeping up with the times amidst global and regional challenges. Over the last three decades, it has indeed been an honor for me to be a part of this global community as an alumnus of MIT and MIT Sloan.”

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Names in cardinal red indicate those celebrating their Reunion in 2015.


Laurel Powers-Freeling, SM ’85Non-Executive Director, Bank of Ireland Plc,

London, United Kingdom

s a woman who has enjoyed career success on an international level, Laurel Powers-Freeling is well acquainted with the challenges women

in business face—and the talent, training, and drive it takes to succeed.

From her first post-MIT Sloan job as a management consultant at McKinsey & Company through her various directorships at Prudential plc and Lloyds Abbey Life, to her executive positions at Marks & Spencer and American Express, Powers-Freeling utilized the skills and education she received at MIT Sloan.

“MIT Sloan gave me an incredible platform from which to build my career,” says Powers-Freeling. “The School provided me with the knowledge to work with complex systems and processes and the finance skills to feel confident working in sophisticated financial environments. I graduated MIT Sloan at a time when women often got a hard steer toward non-analytical career choices. The demonstrable analytical skills I learned, coupled with the ability to embrace the total business picture, made a real difference for me.”

As high as she’s climbed, Powers-Freeling realizes that challenges to women in business still exist, and

Ashe is determined to give back to the School that gave her so much—and to the students who are currently striving to reach their professional goals. In addition to serving on the European, Middle Eastern, South Asian, African Executive Board (EMSAEB), Powers-Freeling is actively engaged in several on-campus initiatives, including Sloan Women In Management (SWIM). “While much has changed for women since I graduated [in society], too much is still the same and works against the development of truly talented women,” she says. “I was delighted to participate in the most recent SWIM Annual Conference and lend perspective and support to women in the early stages of their careers.”

Powers-Freeling’s engagement with MIT Sloan has also given her a profound sense of the School’s vast potential. “I’ve realized that the MIT Sloan community can make a difference, and can do so more effectively with the collective power of actively engaged alumni. And it’s a two-way street: There’s real personal satisfaction in making a contribution to an institution that can shape the future.”



Banu Atkinson, SM ’94Treasurer for United BMB Group Inc.

Tom Atkinson, SM ’94Director of Information Management at EnerNOC

Co-chairs of the MIT Sloan Alumni Board

anu and Tom Atkinson readily acknowledge how much MIT Sloan has brought to their lives: a world-class education, rewarding careers, a

fruitful alumni network, and, of course, a marriage. But in 2006, they had an “A-ha moment” that

took their appreciation of MIT Sloan to new heights. After living around the globe—where Banu benefited from the clout her MIT Sloan degree provided her as a woman in a male-dominated industry—the couple returned to the Boston area to support Tom’s aspirations for a career change.

The guidance and support Tom received from MIT Sloan went above and beyond his expectations. “I was looking to make a significant shift in my career, from the investment banking world into something new. And I didn’t even know what that new something was going to be,” explains Tom. “I met Alumni Career Counselor Ken White, SM ’69, who was instrumental in guiding me through an exploration of what I might be passionate about. Ken introduced me to the idea of learning by doing, of getting out and participating.”

Keeping Ken’s insights in mind, Tom explored a nascent enthusiasm for energy. He joined the fledgling MIT Energy Club and helped plan its first-ever Energy

Conference in 2006. “Being involved in the club’s early phase helped me to learn about the energy industry and get integrated into the community of clean tech around Boston, which led to my job at EnerNOC,” says Tom.

“Tom’s experience was a turning point for us,” says Banu. “It was an ‘A-ha moment,’ when we realized that MIT Sloan has made a lifelong investment in us. The relationship didn’t end when we received our diplomas. More than a decade after our graduation, the MIT Sloan Career Development Office has transformed our lives.”

But Tom and Banu took more than his new career from the experience—they wanted to help other alumni as they had been helped. “We realized that we wanted to reciprocate, in whatever capacity that we could,” says Banu. Adds Tom, “I saw the value of our community firsthand, and decided I wanted to do more of this stuff. I wanted to go back to MIT Sloan and give talks and advise students. I wanted to pay back for having been given so much.”

Currently, Tom and Banu are also giving back as the new co-chairs of the MIT Sloan Alumni Board. In their positions, they hope to connect with alumni on a global scale and raise awareness of the value of the MIT Sloan community. And they just might help their fellow alumni to experience some “A-ha moments” of their own.

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Serge Schoen, MBA ’96Executive Chairman, Louis Dreyfus Commodities Holdings Group

erge Schoen, MBA ’96, considers attending MIT Sloan a critical move for his career. “My international education at MIT Sloan transformed

my outlook and expanded my understanding of global businesses.” Serving as the Executive Chairman of the Louis Dreyfus Commodities Holdings Group, Schoen heads an organization with companies in 90 countries and assets across the supply chain, providing food and clothing to over 500 million people around the world.

From his bird’s-eye view, Schoen foresees that “the world is going to change in our lifetime. We are speeding towards a more globalized world and it is important to stay at the forefront and guide the change.” He advises, “One country cannot solve the world’s problems. We need different people from different backgrounds working on solutions.” That’s the reason why Schoen looks to MIT and MIT Sloan for answers. “Questions

regarding the world’s natural resources and their sustainability transcend national borders. MIT has the diverse human capital the world needs to work on these issues.” By providing fellowships for European students at both the undergraduate and graduate level, Schoen and his family hope to sustain and encourage diversity in the student body and develop principled, innovative leaders for the new globalized world.

In reflecting on the Course XV centennial, Schoen added, “I just want to do everything in my power to make the next century of the School as phenomenal as its first.”

S


MIT Sloan

I N M E M O R I A M

39

In MemoriamWith deep sadness, the MIT Sloan School of Management reports the recent passing of fellow alumni.

1935 Mr. John W. James, BO August 15, 2013

1938 Mr. Joseph H. Church, SB February 20, 2013 Mr. L. Frederic DuBois, SB January 29, 2014

1941 Mr. Zachary P. Abuza, SB November 11, 2013 Mrs. Barbara L. Goldberg, SB August 17, 2013

1942 Dr. Philip J. Bendt, SB July 15, 2013

1943 Mr. Paul Colsmann, SB May 30, 2013 Mr. John T. Shutack, SB July 28, 2013 Mr. Richard M. Stern, SB August 28, 2013

1944 Mr. Walter A. Clayton, BO May 12, 2013 Mr. John S. Goldey, SB June 17, 2013

1946 Mr. Robert M. Dorwart, BO October 21, 2013 Mr. A. E. Halberstadt, Jr., SB March 17, 2013

1947 Mr. Harris J. Jacqmin, SM September 22, 2013 Mr. Jack L. Mohr, SB May 3, 2013 Mr. Robert W. Peach, SB April 26, 2013

1948 Mr. Lawrence R. Stumpf, SB May 30, 2013 Mr. David L. Walton, SB March 8, 2013

1949 Mr. Robert E. Hughes, SB April 26, 2013 Col. Gordon D. Shingleton, SB May 18, 2013 Mr. Erskine N. White, Jr., SM July 28, 2013

1950 Mr. Richard C. Fay, BO September 3, 2013 Mr. Edwin A. McLeod, SB June 9, 2013 Mr. Leonard M. Smith, SB November 27, 2013 Mr. David L. Sutter, SB January 18, 2014

1951 Mr. Robert A. Lindquist, SB December 14, 2013 Mr. Kenneth A. W. Matheson, SM March 12, 2013

1952 Mr. Herbert W. Eisenberg, SB July 17, 2013 Mr. Charles L. Proctor, SB October 9, 2013 Mr. Carroll F. White, SB September 8, 2013

1953 Mr. James J. Crowley, SB December 23, 2013 Mr. Robert J. Fahey, SB April 20, 2013 Mr. Gordon W. Sangster, SM September 13, 2013

1954 Mr. Robert Avakian, SB September 12, 2013 Mr. W. Carleton Bartow, Jr., SB March 2, 2013

1955 Mr. Alfred E. Fernald, SF September 6, 2013 Mr. Theodore A. Mangelsdorf, Jr., SM December 28, 2013 Mr. Roger K. Olen, SM September 30, 2013 Mr. James W. Storey, SB January 2, 2014

1956 Mr. Alonzo C. Hicks, Jr., SM December 3, 2013 Mr. Forester L. Hodges, BO January 10, 2013 Mr. Curtis M. Klaerner, SE September 22, 2013

1957 Mr. Kenneth Kanrich, SB September 4, 2013

1958 Mr. Herbert E. Calves, Jr., SB May 12, 2013 Mr. Douglas A. F. Dodds, SM May 11, 2013 Mr. James H. Eacker, SM June 8, 2013 Mr. Donald J. Soderholm, SB August 19, 2013

1959 Mr. Marvin J. Alper, SB April 30, 2013

1960 Mr. Nicholas Baloff, SM July 15, 2013 Mr. William G. Evans, SF August 21, 2013 Mr. W. Blake Foster, SB June 25, 2013 Mr. Howard H. Kehrl, SF October 1, 2013 Mr. Harold E. Rudel, SE December 23, 2013

1961 Mr. William E. Dirkes, SF June 22, 2013 Dr. Linda G. Sprague, SB September 10, 2013 Mr. Joseph W. Wiggins, SE January 11, 2014

1962 Mr. Arne E. Mark, SF May 15, 2013 Mr. Michael F. Parlamis, SB October 6, 2013

1963 Mr. Charles W. Campbell, SF July 7, 2013

1964 Mr. Robert W. Giertz, SE July 14, 2013 Mr. Allan W. Johnstone, SF November 22, 2013 Mr. Philip S. Lang, SF September 19, 2013 Mr. T. Franklin Morring, SF June 7, 2013

1965 Mr. Louis C. Sajda, Jr., SB June 4, 2013

1967 Mr. Robert E. Darling, SF September 3, 2013 Mr. Charles E. Letts, SE October 27, 2013

1969 Mr. Clyde E. Rettig, Jr., SB September 23, 2013 Dr. Robert R. Schnorr, SE October 29, 2013

1970 Mr. David A. Kinneberg, SF December 25, 2013

1971 Mr. Arthur E. Perkins, Jr., SM June 10, 2013 Mr. Thomas Scheitlin, AS January 17, 2013

1972 Mr. Walter T. Conway, Jr., SM June 25, 2013

1974 Mr. Chester Ju, SM November 2, 2013 Mr. Ronald F. Nino, UE May 7, 2013

1975 Mr. Kenneth W. Gorman, SM July 3, 2013 Mr. Joseph R. Miller, SF September 1, 2013

1976 Mr. Lincoln D. Cathers, SF June 1, 2013

1977 Mr. Thomas Laidlaw, SE December 31, 2013 Mr. Assen Nicolov, SM November 14, 2013 Mr. Daniel Simonds, Jr., SM October 17, 2013

1979 Ms. Margaret Coleman Haas, MO August 31, 2013 Mr. Grover W. Hall, Jr., SF August 16, 2013

Summer 2014


1923 Radm. C. D. Williams, Jr., BO December 1975

1924 Mr. Sarkis M. Zartarian, SB December 1967

1928 Mr. Henry K. Friedlander, SB February 1990

1929 Mr. Paul C. Brown, SB August 1993 Mr. Robert G. Cowan, BO April 1985

1931 Mr. Carlton T. Nicholson, SB October 1978 Mr. H. Sheldon Smith, SB April 2011

1933 Mr. Harry G. Lees, BO October 1993

1934 Mr. John H. Spencer, BO March 1999

1935 Mr. Robert L. Grosjean, SB December 1995 Mr. Edward J. L. Ropes, BO December 1988

1937 Mr. William P. Somers, BO January 2002

1938 Mr. Paul J. Sullivan, SB February 2007

1939 Mr. Roland D. Glenn, MO June 2006 Mr. Ryder Pratt, SB December 2011

1943 Mr. Robert E. Bates, BO March 2010

1944 Mr. Edward S. Devicuna, BO December 1999

1947 Mr. Frederick W. Churchley Jr., SB August 2010 Mr. Arnold Robeck, SB August 2008

1948 Mr. Robert H. Giljohann, SB December 2012

1949 Mr. Norval White, SB December 2009

1950 The Honorable John J. Kinley, SM May 2012

1951 Mr. Arthur L. Krasnow, SB May 2012

1952 Mr. Harris D. Lang, SM November 2006

1957 Mr. Orlo Center, SE May 2005 Mr. Joseph P. Rutledge, SF September 2008 Mr. Alfred O. Saenger, SE October 1995

As of January 30, 2014

As of January 30, 2014

1980 Mr. Bruce J. Wrobel, SB December 10, 2013

1984 Ms. Catherine D. Crone Coburn., SF February 18, 2013

1986 Mr. Merrill L. Almquist, SE October 21, 2013 Mr. Paul E. Blanchette, SF July 25, 2013

1989 Ms. Christa Mayerl, MOT August 27, 2013 Mr. Junichi Shimmyo, MOT December 27, 2013

MIT Sloan was saddened to learn recently of the passing of the following alumni.

1991 Dr. Fred M. Macon, MOT January 1, 2014

1995 Mr. Thomas Mitchell, AS December 20, 2013

1999 Mr. Christopher Galt Brown, MBA November 19, 2013

2010 Mr. Gregory L. Hutko, SB April 24, 2013

1958 Mr. Paul L. Bruhn, SE December 1993 Mr. Benjamin K. Sollars, SE November 2001

1959 Mr. Conrad B. Sharpe, SB March 2012

1963 Mr. Robert C. Drummond, SE March 2005

1966 Mr. Eugene J. Cattabiani, SE October 1992

1967 Mr. Joel D. Ware, SF May 2003

1970 Mr. John A. F. Dean, SM December 2012 Mr. Glenn M. Fedderson, SE October 2010 Mr. Donald L. Tymchuck, SM November 2012

1971 Mr. Nicolaos C. Arvanitakis, AS September 2000

1972 Mr. Robert K. Smyth, SE January 2012 Mr. Kenneth P. Wayne, SB February 2012

1976 Mr. Michael R. Bruce, SF October 2001 Mr. Ralph Hennie, SE June 2012 Mr. Rodney D. Page, SE October 2009 Mr. D. Elliott Wilbur, Jr., SE April 2012

1978 Dr. Sudipto Bhattacharya, PhD 2012 Dr. Charles C. Halbower, MO May 2010 Mr. Peter L. Jackson, SB October 2011

1979 Mrs. Nina L. McGuire, SE August 2001

1980 Mr. T. L. Russell, SE January 2010

1981 Mr. Roger P. Onorati, SE December 2012

1983 Mr. Lester A. Cohen, SE July 2010

1984 Mr. Vito V. Val, SE October 2012

1985 Mr. Lowell T. Harmison, SE March 2011


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