bg P r e s i d e n t ’s R e p o r t 2005 Entrepreneurial Leadership
Ethics & Integrity
Coll abor ation & Commitment
I n n o v at i v e Te a c h i n g
Integr ated Curriculum
Hybrid Learning
Relevant Research
Corpor ate Connections
Diversity & Community
Women’s Leadership
Global Management
Fa m i ly E n t e r p r i s i n g
International Partnerships
Executive Educ ation
Alumni Network
i n n o v a t i o n
i s
o u r
t r a d i t i o n
“The word which best captures the spirit and achievement of the past year is ‘impact’—an outgrowth of our Strategic Plan for the College.”
Letter from the President “Last year, I focused on action steps that were being developed to implement the plan. This year, I am emphasizing impact—how our Strategic Plan is making a difference.” — Brian M. Barefoot ’66, P’01
As I complete my fourth year as President of Babson, I am pleased to
investments you can make. And, you will find examples of alumni
report the College has achieved many new “firsts” during the past year:
whose investments continue to yield benefits year after year.
• Our best ever national and international survey rankings, reflecting Babson’s growing academic reputation and stature. • Recognition as the business school offering the greatest opportunity for women.
For me, it has been a year of extraordinary learning. Last fall, we began a series of dinners with alumni and parents across the U.S. and overseas. Our conversations were focused on the impact Babson has had on their lives, their views on which initiatives in the Strategic Plan
• Our first Fulbright Scholar.
should be given priority, and their ideas on how to create a stronger
• The largest gift from an individual or a family ever made to the
culture of philanthropy throughout the Babson community. We
College—$20 million committed by Bob and Jan Weissman. • A record number of students benefiting from international experiences. • More exciting projects under way than ever before with our partner institutions in the U.S. and abroad. Some positive developments are more difficult to measure, but
explored new ways of building relationships with alumni and involving them more actively with the College and with one another. Alumni emphasized, in a personal way, that our faculty is a real differentiator for Babson. Time and again I heard stories of how faculty members changed their lives. I learned about the dedication of our
apparent to anyone who spends time on campus. The student experience
faculty to students—not only while these alumni were at the College,
is changing, with a greater balance between course work and out-of-
but even after they graduated and sought advice about their careers. I
classroom activities. Our students, always entrepreneurial, are taking the
also heard from a number of alumni about how financial aid made a
lead. They are starting more clubs and organizations, taking part in
difference, enabling them to attend a school that would have been out
more sports, and devoting more time to social projects for the commu-
of their reach without this support.
nity, both here and overseas. So we’re seeing a tremendous increase in the level of engagement in all aspects of the student experience. Faculty engagement with students has always been a hallmark of
Hearing so many similar accounts convinced me that the College has to do a better job of explaining the connection between our ability to attract great faculty and quality students and the role of philanthropy.
Babson. Our faculty members have long been informal advisers to
We also need to ensure that we offer activities and events that provide
students. Starting last year with the Class of 2008, every student has an
real value for our alumni.
adviser team which, of course, includes a faculty member. Many faculty
The schools with which we now compete have been accelerating
members also assist student organizations that work on projects with a
their fund-raising in recent years—and spending it on faculty salaries,
societal impact, such as helping with the construction of homes for poor
endowed chairs, and research support, as well as financial aid and merit
families through our chapter of Habitat for Humanity and Babson’s
scholarships for the best students from a variety of backgrounds. Creating
project for teaching entrepreneurship to teenagers in South Africa.
a stronger culture of philanthropy across the Babson community and
Alumni, too, are more involved with the Babson community than ever before through career and corporate affinity groups, mentoring, coaching, fund-raising, outreach to former classmates, and participation
inspiring greater financial support from our alumni and friends is the greatest challenge—and opportunity—ahead. Bob Weissman ’64, P’87 ’88 ’90 summed this up eloquently when he
in governance. They also are guest speakers in the classroom, bringing
announced the gift that he and his wife, Jan, are making to Babson:
to our students their perspectives on the latest developments in the
“Today I believe that Babson is the best investment I have ever made, an
business world.
investment that is already delivering more than I ever dreamed, and yet,
In fact, the word which best captures the spirit and achievement of
increasingly, one with truly extraordinary future potential.”
the past year is “impact”—an outgrowth of our Strategic Plan for the
We are at a very exciting time in the history of the College. As you
College. In my first President’s Report two years ago, I described this
read through this report and learn more about the investments that have
Strategic Plan. Last year, I focused on action steps that were being
been made in Babson and the impact they are having, I know you will
developed to implement the plan. This year, I am emphasizing impact—
share our enthusiasm. With your help, these investments and their
how our Strategic Plan is making a difference.
impact will grow dramatically in the years ahead.
This report includes messages from our deans and our trustees, as well as an overview of the College’s finances. You also will read about students and faculty who are making a difference. You will learn why an investment in Babson’s faculty and students is one of the best
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The Office of the Provost “Babson students are interacting with the best students in the best schools in those regions of the world.” — Mike Fetters, Provost
Taking Entrepreneurship to the World—Bringing the World to Babson Last year, Mike Fetters accelerated Babson’s efforts to position and deepen the College’s strategic relationships with our partner schools around the world. The vehicle for this strategy is Babson’s unique brand of management education and our conviction that entrepreneurial thinking is needed in all disciplines and in every organization, whether they are new ventures, established businesses, family or corporate, not-for-profits or government agencies. “One of the points I always emphasize in my travels to our partner schools is that entrepreneurs need skill in all functional areas to be successful. We not only have excellent entrepreneurship faculty, but we are strong in the traditional disciplines as well,” states Mike Fetters. This has been a highly attractive draw for our global partners. At the beginning of last year, Babson made a very deliberate move to strengthen the connections between our international institutes (Asia Institute, Europe Institute, Institute for Latin American Business) and our academic centers (the Center for Women’s Leadership, the Arthur M. Blank Center for Entrepreneurship, and the William F. Glavin Center for Global Management). These institutes forge relation-
Michael Fetters Provost fetters@babson.edu
ships with partner schools and alumni around the world and link their global regions back to
ESADE in Barcelona:
Tsinghua in China:
Babson. The centers provide programs, faculty,
• Executive education programs.
• Developing and delivering joint
and other resources. The linking of the insti-
• Babson faculty members teach modules in
tutes and the academic centers has resulted in
their graduate program.
the development of deeper, multilevel relation-
• Undergraduate exchange program.
ships with some of the best schools in the
• Exploration of a joint MS in Finance.
their EMBA Program. • Developing with other Chinese universities the Symposium for Entrepreneurship
world. Here are a few examples of the multiple points of touch Babson has with three of its
TEC de Monterrey in Mexico:
strategic partners:
• Two-week intensive course for engineering students from TEC to study entrepreneurship at Babson College. • Development of an MS in Entrepreneurship with TEC’s engineering students. • Faculty exchanges between TEC and Babson.
2
executive education programs. • Delivering an entrepreneurship module to
• Undergraduate exchange program.
Education in China. As Babson expands its entrepreneurial brand around the world, we will greatly improve our ability to present global realities to our students, preparing them to be entrepreneurial leaders across all borders.
This year marked the 25th anniversary of the Babson-Kauffman Entrepreneurship Research Conference, the premier research conference on entrepreneurship in the world.
Building Capability to Support the Vision Dean of Faculty Fritz Fleischmann and
an extraordinarily committed and dedicated
Vice Provost for Entrepreneurship Stephen
faculty.” It will be imperative to develop the
Spinelli Jr. M’92 have been leading key
resources to attract those extraordinary individ-
initiatives to support Babson’s vision of taking
uals to Babson in the years ahead.
entrepreneurship to the world. For Dean
For Vice Provost Spinelli, building capability
Fleischmann that has meant retaining and
is about developing new “constellations of
attracting a world-class faculty through these
faculty” which embody Babson’s expanded view
and other actions:
of entrepreneurship. In addition to Babson’s
• Launched an ongoing series of teaching
expertise in new venture creation, entrepreneur-
seminars created by and for faculty on
ial finance, and sustainable growth, constella-
a variety of topics in teaching, including
tions are being formed around a number of key
preparing more faculty to teach in an
focus areas. These constellations are listed below
on-line context.
together with their recent key initiatives.
• Introduced four new teaching awards,
• Corporate Entrepreneurship—launched the
supported by the program deans, to
Innovation and Corporate Entrepreneurship
recognize great teaching at Babson.
Research Center in partnership with Babson Executive Education.
• Streamlined internal research funding
• Technology—launched the Symposium for
process to enable faculty to plan and execute their research work more effectively.
Entrepreneurship Engineering Educators
In addition to faculty development pro-
in partnership with the F.W. Olin School
grams, the College will be dedicating signifi-
of Engineering, with a grant from the
cant resources to increase salaries and lower
National Science Foundation.
teaching loads, bringing faculty compensation
Stephen Spinelli Jr. Vice Provost for Entrepreneurship (left) spinelli@babson.edu Fritz Fleischmann Dean of Faculty (right) fleischmann@babson.edu
• Family Enterprising—launched the Successful
closer to our competitor benchmarks. Dean
Transgenerational Entrepreneurship
Fleischmann points out, “Because Babson has
Practices (STEP) project, a major research
throughout all of these key areas. For example,
risen to a higher tier in the academic world,
initiative that explores the entrepreneurial
Babson is working to improve opportunities
process within families’ businesses.
and curriculum for underserved populations in
we’re now competing with schools that have much greater resources.” The profile of an ideal
• Public Policy—produced the 2005 Global
Social entrepreneurship concepts are woven
its programs for women and its partnership
faculty candidate for Babson is somewhat
Entrepreneurship Monitor, the leading
with Historically Black Colleges and
unique in the academic world, states Dean
globally focused entrepreneurship
Universities.
Fleischmann. “This is a place that demands engagement in a common cause to make a
research report.
Because of our expanded view of entrepre-
• Women’s Leadership—produced significant
neurship, Babson was able to attract world-
difference. It is not the place for someone
research on women’s entrepreneurial
class academic Dr. Candida Brush to join the
who is only looking to advance his or her
activity and hosted the 7th annual Women’s
College as chair of the Entrepreneurship divi-
individual career goals. As a result, we have
Leadership conference.
sion. She will lead the planning for our pioneering new PhD in Entrepreneurship.
F a c u l t y C o m p e n s a t i o n — B a b s o n P a y s L e s s t h a n t h e To p T i e r
This appointment is another powerful example
Management Faculty Positions
Babson Salary Median
Benchmark Median
Babson as % of Benchmark
Assistant Professor
$95,200
$115,000
82.8%
and entrepreneurial strategies is working to
Associate Professor
$102,900
$117,000
87.9%
expand our capabilities.
Professor
$125,600
$157,200
79.9%
of how the convergence of Babson’s global
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Undergraduate Education “It’s not just that we are connected; it’s that we understand and make the most of our connections.” — Dean Patti Greene
INITIATIVES AND RESULTS ADMISSIONS • Largest number of applications ever = 3,168. • 26% Multicultural. • 24% International. • Most geographically diverse class ever—62% from outside New England (55% in 2004, 54% in 2003.).
CURRICULAR ACTIVITIES • New global management concentration enrolled 39 students. • New international experiences added in Russia, Australia, and Italy. • FME businesses created by first-year students contributed a record $61,000 in combined earnings to nonprofit organizations. • Study Abroad = 79 students in 21 countries. • Offshore courses = 45 students in three countries.
EXTRACURRICULAR ACTIVITIES • 60+ Student groups/organizations. • Student volunteer hours = 15,000. • 22% of students participate in varsity sports.
CONSULTING EXPERIENCES • Management Consulting Field Experience = 112 students on 27 projects with 26 companies and not-for-profit organizations.
CAREER DEVELOPMENT • 97% of the Class of 2004 was employed or attending graduate school within six months of graduation. • 78% of the Class of 2005 had internships, 35% of whom received offers of employment upon graduation. • Coaching for Leadership and Teamwork Program 725 students participating. • The number of hiring organizations seeking Babson graduates increased by 18%.
RANKINGS PERFORMANCE • U.S. News & World Report ranked Babson: • #1 undergraduate program in the U.S. for Entrepreneurship for the ninth consecutive time. • Improved from #29 to #26 in the Best Business Program category. • #22 in the International Business category and #24 in the Management category. • CosmoGirl ranked Babson one of its top 50 colleges.
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Patricia G. Greene Dean, Undergraduate School President’s Endowed Chair in Entrepreneurship greene@babson.edu
Internship Yields Career Opportunity
Accelerating Impact through Integration and Agility Dean Patti Greene traveled extensively this
completed their first year. The second group
past year, making presentations at a variety
of POSSE students arrived this fall.
Elizabeth Campbell ’05, Allocation Analyst TJX Corporate Merchandising Training Program
of venues across the country, including the Association to Advance Collegiate Schools of
Academics
Business (AACSB) International 2005 Deans
Perhaps the year’s greatest testament to
Conference, the Academy of Management,
Babson’s progressive and rigorous undergrad-
and General Electric’s Women’s Network. The
uate education was Julian Simcock, Babson’s
more people she talked with, the more con-
first Fulbright Scholar. Julian’s achievement
vinced she became that the talent and culture
exemplifies the impact the undergraduate
of Babson really does create a uniquely power-
school’s curriculum can have on our students.
ful higher education environment. “We’re much more ‘fleet of foot’ than other
New innovative curricular opportunities launched last year included: a new experience
schools,” says Greene. “Babson is more focused,
for students in Russian culture and business
more willing and able to take risks, and much
at St. Petersburg State University; students
better at collaborating to get results. It’s not
collaborating with faculty to develop new
just that we are connected; it’s that we under-
cases in ethics; and Babson students partner-
stand and make the most of our connections.”
ing with engineering students from Olin to
Dean Greene attributes this advantage to the way Babson integrates its major strategic themes (entrepreneurship and global perspec-
win the annual business plan competition on Founder’s Day. A hallmark of the Babson education is the
tive) and key values (creativity, ethics, and
close relationships forged between faculty and
diversity) into everything the College does,
students. In FY05, a new advising system was
generating extraordinary impact through an
put into place that connects each incoming
innovative curriculum, world-class faculty, and
student with a faculty adviser. To further guide
an increasingly competitive student body.
students, 21 academic concentrations were introduced to link course work with career
Admissions
“My merchandising internship at TJX gave me broad exposure to the retail industry and provided valuable insight into the career of a buyer. As an intern, I was given the responsibility for managing the inventory level of 750 stores across the nation. This responsibility allowed me to gain the necessary confidence and tools to begin to achieve success in retailing and also present myself as a strong candidate for other buying programs. “At the end of the summer, I was offered a fulltime position as an allocation analyst in their Corporate Merchandise Training Program.”
development plans.
Under the leadership of Dean of Undergraduate Admission Alan Kines, the College
Cocurricular Activities
Career Development
has initiated a more strategic approach to
Babson supports a tremendous array of
At Babson, career development is integrated
building a class of students, essentially hand-
cocurricular activities for students, including
into each student’s activities from day one,
picking each individual. Last year, Babson
themed housing, women’s leadership opportu-
through internships, coaching and career
received its largest number of applications,
nities, more than 60 student groups and
development workshops, and opportunities to
and the new students are “higher, faster,
organizations, and varsity sports and intramu-
meet employers through recruitment inter-
brighter than ever,” according to Dean Greene.
ral activities.
views, classroom experiences, and connections
The Class of 2009 saw an increase in the
A highlight from last year’s Martin Luther
with alumni. Last year, the Center for Career
percentage of underrepresented students and
King Jr. Legacy Day was the address of keynote
Development launched partnerships with the
is the most geographically diverse class ever.
speaker Dr. Muhammad Yunus, founder
Coaching for Leadership and Teamwork
In addition, Babson’s first group of POSSE
and managing director of Grameen Bank,
Program, Global Program Services, and
students (inner-city high school students with
Bangladesh. Dr. Yunus is a role model for
Alumni & Development to leverage the
leadership potential who are likely to be
addressing poverty and development.
resources of the entire community in position-
overlooked for college admission) successfully
ing students for great careers.
5
Graduate Education “We are committed to expanding our reach through technology—without sacrificing the close relationships between faculty and students that are the hallmark of a Babson education.” — Dean Mark Rice, F.W. Olin Graduate School of Business
INITIATIVES AND RESULTS RANKINGS PERFORMANCE • #1 in Entrepreneurship for 12th straight year in U.S. News & World Report. • #26 in BusinessWeek—the only new school in the top 30. • Ranked #16 in the country by corporate recruiters surveyed by BusinessWeek. • #20 worldwide in America Economia, leading Latin American business journal. • One of the top 25 MBA programs in the U.S. for Hispanics according to Hispanic Trends Magazine. • #1 MBA program for women in The Princeton Review in 2004 and 2005.
ENROLLMENTS Two-year MBA One-year MBA Evening MBA Fast Track
FY04 FY05 163 162 52 54 162 157 45(Jan.) 39 (Jan.)
GLOBAL OPPORTUNITIES • New global management concentration enrolled more than 50 MBAs. • Announced new joint degree program in management with a concentration in technological entrepreneurship with Tec de Monterrey in Mexico. • Globe Trotters, a new student-generated initiative in which Babson international MBA students share information on the cultural and business environments of their countries.
CAREER DEVELOPMENT The MBA Center for Career Development launched an innovative approach to building and maintaining customer-driven partnerships in key vertical industries (e.g. consulting, high-tech, bio-pharma, consumer products, and financial services.). Significant results include: • Full-time job opportunities as listed in eRecruiting were up more than 55%. • Internships were up more than 37%. • The number of students employed at graduation was up more than 14%. • The number of students employed three months after graduation was up more than 13%. • Average starting salary for graduating students increased 8.37%, to $80,766.
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Mark Rice Murata Dean, F.W. Olin Graduate School of Business Jeffry A. Timmons Professor of Entrepreneurial Studies mrice@babson.edu
“In a rapidly changing MBA marketplace, Babson is playing offense—adopting a radical new business model—through Fast Track. We are investing to create something new and better, once again leading the market in curriculum innovation while strengthening the Babson brand.” — Ellyn A. McColgan, President, Fidelity Brokerage Company, and Chairman of the Graduate School Committee of the Babson Board of Trustees
Fast Track—A Radical New MBA Business Model “The biggest challenge and the biggest oppor-
Seizing the opportunity, Babson has made
tunity for the graduate school this year has
a major, multiyear investment of $3 million
been responding to the dramatic shift in the
for program development and marketing.
MBA marketplace for working professionals,”
The goal is to go from one section of 40-50
says Mark Rice, Murata Dean of the F.W. Olin
students/year in 2005 to four sections in 2006
Graduate School of Business. With more than
and five sections in 2007. The graduate school
30 percent market share, Babson continues to
is also recruiting corporate partners to scale
dominate the Greater Boston part-time MBA
the Fast Track enrollment strategy and specifi-
marketplace, but the market has declined
cally address corporations’ evolving training
significantly in recent years, down
and development needs. The implementation
my alumni mentor, was the ‘polar opposite’ of what
more than 18 percent since 2002. The primary
of the Fast Track will have institutional
I wanted to do professionally. He was in finance,
reasons for this decline include shifting
impacts far beyond the program itself:
and I wanted to pursue a career in sales. However,
demographics, less favorable corporate tuition
Alumni Mentoring Program “When I first got my match, I was surprised. Michael,
• A flexible curriculum based on learning
over the course of our five meetings, I discovered
reimbursement policies, and the proliferation
modules that will provide a portfolio of
that we had a lot of interests in common, and the
of online programs offered by both for-profit
options for the graduate school to bring to
relationship really began to develop. Michael was
and nonprofit institutions.
the market. These programs can be deliv-
instrumental in introducing me to someone at his
ered online, in the classroom, or in a
firm which ultimately led to an internship there. This
blended format.
relationship influenced me and my career develop-
In response to these challenges, the Grad School teamed up with College Marketing to analyze the market and identify a “sweet spot”
• Stronger, more valuable corporate relation-
ment in ways I could never have imagined.” —Timothy Beagen, M’06, Two-Year MBA Program
where Babson could differentiate itself and
ships that can be leveraged across all Babson
capitalize on these shifting dynamics. The
programs. This is an extension of the
decision was to “expand the pie” geographical-
External Relations strategy Babson launched
ly, enabling working professionals from
in 2003, in which companies benefit from a
I let him drive the frequency of contact, and he was
outside the Boston area to attend the #1
“one-stop” shopping approach for their MA
very proactive about contacting me and staying in
MBA school for entrepreneurship on a part-
and MBA programs; executive education;
touch on a regular basis. He understood the impor-
time basis through “blended” learning.
interns and employment needs. This key
tance of time in relationship building and acted
account approach will create more career
very professionally throughout the year.
“We are committed to expanding our reach
“Tim really gets all the credit for this relationship.
“From my perspective, I gained a lot from this
through technology—without sacrificing the
placement opportunities for Babson MBAs
close relationships between faculty and stu-
and create another channel for connecting to
experience. I had the opportunity to give back to
dents that are a hallmark of a Babson high
prospective students.
Babson, reconnect with old classmates, and stay in
Two other programs at the graduate school
touch with the school and MBA Program. And my
quality education,” Dean Rice said. The solution was a radical new business model:
really hit their stride this year—the Alumni
company got a highly qualified intern.”
The Babson Fast Track MBA, a blended
Mentoring Program (AMP) and the Career
—Michael Lin, M’00, Senior Director of Finance and
approach that combines traditional classroom
Affinity Groups (CAGs). These programs are
instruction with distance learning, making it
aimed at accelerating career and professional
flexible and market-friendly while preserving
development for students, building corporate
the excellence of Babson’s integrated curricu-
relationships, and strengthening the MBA
individuals, and on companies that reap
lum. And it’s shorter than a traditional part-
alumni network. Every relationship between
the benefit of Babson-educated employees.
time MBA program, with participants
an alum and a student has the potential for
The broader and deeper these relationships,
graduating in about two years.
multiple impacts—on students’ careers, on
the more opportunities they create for
alumni opportunities to make a difference for
Babson’s students.
Strategic Planning, Fast Search & Transfer
7
Executive Education “It’s Babson Executive Education’s ability to truly partner with clients that differentiates us so clearly from our competitors.” — Dean Elaine Eisenman, Babson Executive Education
INITIATIVES AND RESULTS RANKINGS BOOST • Financial Times: Babson custom programs: #4 for Value for Money (worldwide). #5 among U.S. programs. #9 worldwide (up from #10 in 2004). #8 for Course Design (worldwide). #9 for its Faculty (worldwide). Babson open enrollment programs: #9 among U.S. programs. #11 worldwide (up from #16 in 2004). • BusinessWeek: #11 in the United States. #18 worldwide.
CALENDAR YEAR ’04 FACTS & FIGURES: • New custom clients: 24. • Repeat custom clients: 38%. • Custom programs delivered: 59. • Custom programs delivered in more than one country: 20%. • Increase in open program enrollment: +13%. • Increase in research center sponsorship: +133%. • New programs launched: 2. — Women’s Leadership Open Enrollment Program — Innovation and Corporate Entrepreneurship Research Center
SAMPLING OF SATISFIED CLIENTS: Battelle Biomedical Marketing Assoc. EMC Estee Lauder Fidelity Ingersoll Rand MetLife Millennium Pharmaceuticals St. Gobain Teradyne
MetLı˙fe
Elaine Eisenman Dean, Babson Executive Education eeisenman@babson.edu
SUCCESS STORY: Babson listened to MetLife’s needs to create truly custom programs to support MetLife’s strategy.
MetLife had a vision: A leadership training program that blended general business instruction with company-specific case studies. The company wanted professors with demonstrated industry expertise; and, importantly, they wanted those professors to be willing to share teaching responsibilities with their own corporate executives. MetLife wanted the program to include real projects focused on current business problems or opportunities that could be immediately implemented by participants upon completion of the program. In Babson Executive Education, MetLife found a long-term partner in leadership development. Babson’s professors offered expertise, flexibility, and a willingness to create a robust program customized to the level the company wanted—exactly what MetLife was looking for. “The effectiveness of our program with Babson speaks for itself—88 percent of the projects we tackled in the program have been implemented. Combining learning with work made our business better and produced higher results.” — Deb Capolarello, Senior Vice President and Chief Talent Officer, MetLife
8
˙ Sıemens
SUCCESS STORY: Babson’s global perspective, integrated curriculum, and history of innovation made it an obvious choice.
Siemens faced a challenge with its “Advanced Management Program — S3,” a management learning program intended to develop entrepreneurial potential in managers with multifunctional responsibilities. Siemens needed a provider who could deliver several five-day programs in a year, integrate the programs with elements of existing management development initiatives, address global strategy issues, provide insight into financial tools, and improve managerial effectiveness.
“Babson delivered value across the entire value chain by working closely with my team. Whether design, delivery, or applying the learning back into the business, Babson succeeded at all levels—it’s been a great partnership.” — Dr. Udo Dierk, former Vice President, Corporate Human Resources, Siemens Management Learning, Siemens
Exceptional Value for Money During the past year, Babson Executive
value doesn’t stop there. Babson Executive
Education (BEE) solidified its position among
Education launched the award-winning Life
the top schools in both the BusinessWeek and
Sciences Insight, an industry-specific e-maga-
Financial Times rankings. To round out this
zine comprised of articles by Babson faculty
performance, the Financial Times ranked BEE
and industry leaders. It also has leveraged
#4 in the world for “value for money” in
connections within the Babson community,
2005. This extraordinary ranking, based
including a new Life Sciences affinity group
entirely on client input, is testament to BEE’s
for alumni and the MBA life sciences club.
ability to deliver superior value at a competi-
Industry leaders such as Louis Lavigne Jr. ’69,
tive price—an ideal platform for continued
former executive vice president and CFO of
growth and success. This platform and its potential were key
Genentech; Daniel Vasella, chairman and
experience in global management, providing
CEO of Novartis AG; Mara Aspinall, presi-
even more value to corporate clients.
factors in attracting Elaine Eisenman to
dent of Genzyme Genetics; John Abele,
become the dean of Babson Executive
founder and chairman of Boston Scientific;
New Executive Program for Women
Education. No stranger to high growth
James Mullen, CEO of Biogen Idec; and Bill
Recently, Babson Executive Education and
ventures or the appeal of exceptional value,
Hawkins, president of Medtronic; have
Babson’s Center for Women’s Leadership
Dean Eisenman is an experienced business
graciously supported Babson’s foray into life
joined forces to co-develop and deliver a new
leader and general manager, HR executive,
sciences, either through adjunct faculty
open enrollment program for professional
private and public board member, and organi-
appointments, guest lectures, or interviews.
women. The result of this partnership was a highly successful inaugural program that
zational consultant. “It’s Babson Executive Education’s ability to truly partner with clients
Global Partnerships
further diversified Babson Executive
that differentiates us so clearly from our
As part of Babson’s strategic effort to expand
Education’s client base, and satisfied an unmet
competitors,” she states. BEE accomplishes
our brand through global partnerships,
need in the marketplace: empowering women
this by mobilizing institutional resources to
Babson Executive Education has collaborated
to successfully navigate the critical points of
offer integrated, multidimensional solutions
with leading international business schools:
leadership transition.
to clients. Following are a few great examples
HEC (France), ESADE (Spain), and AGSM
of this strategy in action.
(Australia). Last year, for the fifth straight
Babson Executive Education continues to
year, Babson Executive Education ran pro-
develop a broad range of programs to meet
Life Sciences Practice
grams for students in HEC’s executive MBA
our customers’ needs—from open enrollment
Babson is emerging as a world leader in
program. For the past two years, we have
to applied research centers to custom. Going
providing integrated solutions to companies
provided programs on corporate entrepre-
forward, we will continue to explore innova-
in the life sciences industry. In the past year,
neurship for students in ESADE’s executive
tive ways to provide exceptional value to our
BEE delivered highly rated open enrollment
MBA program in Madrid. And in a new
clients, including more integrated solutions
programs for bio-business professionals. We
global partnership, Babson Executive
and increased attention to post-program
also designed and delivered customized
Education and Australian Graduate School
follow-up and advising. With momentum in
programs in the areas of marketing, strategy,
of Management (AGSM) co-delivered a
the rankings and a talented new dean at the
leadership, and corporate entrepreneurship
consortium program on corporate entrepre-
helm, Babson Executive Education is poised
to professionals from Novartis, Serono,
neurship in Singapore. Through such alliances,
for continued success and greater growth.
Millennium, Haemonetics, Cubist
Babson Executive Education is not only
Pharmaceuticals, and member companies of
bringing the Babson brand to the world, but
the Biomedical Marketing Association. The
also expanding our knowledge base and
9
Financial Highlights For the year ending June 30, 2005, the College achieved an overall increase in net assets of more than $8.3 million.
Statements of Financial Position: 2-Year Comparative Summary 2005
2004
$20,340,441 28,626,155 179,152,232 143,858,332 2,070,540 3,074,744
$16,232,476 19,908,809 167,784,355 148,801,715 4,409,085 3,591,222
$377,122,444
$360,727,662
$13,046,787 113,014,335 19,902,062
$11,158,067 114,902,578 11,881,243
$145,963,184
$137,941,888
231,159,260
222,785,774
$377,122,444
$360,727,662
2005
2004
$87,200,377 19,017,694 8,540,961 7,918,793
$83,744,891 17,162,093 7,118,255 7,597,323
122,677,825
115,622,562
Operating Expenses
126,622,716
118,594,442
Change in Net Assets from Oper ating Activities
( 3,944,891)
(2,971,880)
Endowment investment return net of spending used to support operations Other Nonoperating Activities
9,331,221 2,987,156
14,076,579 (899,236)
Change in net assets from nonoperating activities
12,318,377
13,177,343
$8,373,486
10,205,463
As of June 30
Assets Cash and cash equivalents Pledges, accounts and loans receivable, net Investments Land, buildings, and equipment Bond funds on deposit with trustee Other assets Total Assets
Liabilities Accounts payable and accrued expenses Bonds payable Other liabilities Total Liabilities
Net Assets Total Liabilities and Net Assets
Statements of Activities: 2-Year Comparative Summary For the Years Ending June 30
Operating Activities Operating Revenues and Support Tuition, fees, room and board, and other educational programs Noneducation and auxiliary programs Contributions and grants used in operations Endowment spending and Investment income Total Operating Revenues and Support
Nonoperating Activities
Total Change in Net Assets
The financial statements from which the accompanying condensed financial data has been extracted have been audited by the College’s independent auditor, Pricewaterhouse Coopers LLP. For each year presented, the College has received from PwC an unqualified opinion on its financial statements
Babson Welcomes New CFO Philip N. Shapiro joined Babson on October 31, 2005 as Vice President for Finance and Chief Financial Officer. He brings 30 years of public- and
Financial Summary
private-sector financial management experience, with an expertise in college and university finances. He comes to Babson from Standard and Poor’s,
For the year ending June 30, 2005, the
Executive Education has much clearer revenue
where he was managing director of the Public
College achieved an overall increase in net
growth potential in the near term.
Finance Department, chaired the rating committees
assets of more than $8.3 million. This com-
In fiscal year 2005, the College reorganized
for several New England states, and worked closely
pares to a total increase of $10.2 million
its Alumni Relations and Development Office
with dozens of colleges and universities. He has a
the prior fiscal year. Improvements in the
in preparation to kick off a capital campaign.
BA degree from Amherst College, a MEd from the
executive education programs, increases in
A lead gift in this first phase of the campaign
University of Maine/Orono, and an MBA degree
contributions, and investment return on
led to a dramatic increase in contribution
from Boston College.
endowment assets contributed significantly
revenues, recognizing almost $19 million in
to these results.
new gifts. This compares to $7.4 million
The College’s Executive Education pro-
recognized in fiscal year 2004. Just as impor-
basis in an effort to maximize the return on
gram, rated in the top 10 worldwide, saw
tantly, the number of donors to Babson in
these assets while managing investment risk
an increase in revenues of 19 percent. This
2004-05 was greater than 2003-04. The
to ensure stability within the endowment.
represents the second straight year the College
overall goal for the campaign—to be set in the
has experienced a double-digit percentage
fall of 2006—is expected to be greater than
College is investing in a new residence hall
increase in this line of business. Babson’s strong
$200 million.
for undergraduate students to provide high
market position has enabled us to take part in
Endowment return was solid with a total
Looking forward to fiscal year 2006, the
quality housing and increase the potential for
corporations’ return to investing in executive
investment return of 10 percent, following
additional enrollments. This project is being
training. Undergraduate and graduate pro-
the previous year’s return of 14 percent. These
funded by the issuance of tax-exempt bonds;
grams continue to be the core of the College’s
returns are consistent with those of similar
the residence hall is expected to open for the
activities; however, their revenue growth has
size endowments. The College evaluates its
fall of 2006.
been moderated by student capacity in the
investment asset allocation on an ongoing
full-time programs and by the changes in the
ta
tru
cti o
an
I ns
nd
Fac il
it i e s 2
6%
%
11
In
ort 14%
Academ ic Su ppo rt 1 5
es 9% t Servic den Auxiliary Stu Acti viti es
Supp nal % titutio s
oard 68% nd B ma oo ,R es
ts 7% Tuit ran oneducation 16% ion G d ary/N ,F n Othe e s a uxili r Edu A ca
l 3% na tio
Endowme nt Su pp Con ort 6% trib uti on
MBA market for working professionals.
n 25 %
Pl
Uses of Funds: Fiscal Year 2005 Sources of Operating Revenue and Support: Fiscal Year 2005
11
Governance Investing in Babson’s Future This past year has been one of accomplish-
William F. Markey Jr. M’64
ment and progress for Babson on virtually
Chairman of the Board of Trustees
every front, whether it’s our expanding global partnerships, the enhanced quality of our students, the achievements of our faculty, a strengthening executive education business, or our continued rise in the rankings. Babson’s Board of Trustees and Overseers (listed to the right) have never been more excited about the prospects for Babson’s future. In the next section of this report, you will be introduced to students and faculty who are involved in the type of initiatives and outcomes that are occurring regularly at Babson. You also will hear from several of our alumni donors of the past year, as they share their thoughts on why they believe Babson is such a worthwhile investment. I hope the profiles in this report will inspire you to recall the value you have derived from your Babson education. Please join me in supporting the College to help make these kinds of exciting opportunities more available to future students and faculty, as they build Babson’s reputation around the world.
Trustees and Overseers Members of the Board of Trustees as of May 2005
Members of the Board of Overseers as of May 2005
Katherine L. Babson Jr., Esq. M’77, H’99
Ms. Rena P. Mirkin
Charles S. Adams, Esq. ’62
Nixon Peabody LLP
Wellesley High School
Weston, Patrick, Willard, Redding, P.A.
Mr. Howard M. Lorber P’01 Mrs. Paula Crane Lunder P’86 ’90
Mr. Jeremiah J. Noonan ’81
Mr. Richard L. Babson
Babson College
SpencerStuart
Babson-United Inc.
Mr. Peter E. Madden ’64, P’04
Mr. Marc H. Bell ’89
Mr. Robert E. Madden H’97, P’93
Mr. Brian M. Barefoot ’66, P’01
Mr. Joseph G. Parham Jr. ’72, M’75
Mr. Frank S. Benson III ’74
Marc Bell Capital Partners LLC
Acuity Brands Inc.
Casto
Mr. William G. Burrill P’04 ’04 ’06
Mr. Richard A. Renwick ’79
Mr. Bernard G. Berkman ’52, P’79
W.G.B. Construction Co. Inc.
Dr. James I. Cash Jr. H’03 The Concours Group
Ms. Karen K. Chandor M’74 Stockbridge Advisors LLC
Mr. Stephen D. Cutler M’61 Essex Investment Management Co. LLC
Mr. Everett R. Dowling M’86 Dowling Company Inc.
Mr. Edward M. Fitzgerald ’77, M’78 ARIAD Pharmaceuticals Inc.
Mr. Barry H. Goldman ’81 Ms. Gloria M. Gutierrez ‘87 The Gutierrez Company
Mr. Muhammad H. Habib ’81 Habib Bank AG Zurich
Ms. N. Lyle Howland ’79 Howland Enterprises Inc.
Mr. Estefano E. Isaias Sr. ’68, P’00 ’02 TC Television
Mr. Francis P. Jenkins Jr. ’65 Royster-Clark Inc.
Mr. Eric G. Johnson ’72, P’08 Baldwin Richardson Foods Company
Ms. Kathryn D. Karlic, CFA ’76 G.E. Asset Management
Mr. Steven C. Kletjian ’71 UNICCO Service Company
Mr. Harold G. Kotler ’65
PRW Associates Inc.
Bernard G. Berkman Associates Inc.
Daniel V. Riley M’84
Ms. Kay Decker Bernon ’74
Mr. James B. Malloy ’51, P’85 Mr. Mario O. Mariasch M‘75 FS Ventures
Achieve Global
Berkshire Hills Music Academy
Mr. Ronald P. Masnicki P’97 ’00
Mr. Thomas N. Riley ’78, M’82
Mr. William D. Beyer M’90, P’08
Mr. Peter E. McNally ‘80
Atlantic Trust Pell Rudman
Deloitte Consulting LLP
Mr. Robert M. Rosenberg P’94, H’97
Mr. Peter M. Black H’02
Mr. Gobind Sahney ’83
Mr. Kevin Bryant ’82
Sahney and Company
IC Investment
Mr. Thomas T. Stallkamp
Mr. Octavio A. Caraballo ’65, P’91
Honsel International Technologies
Estancias y Cabana Las Lilas
Mr. James W. Taylor ’86
Mr. K. Paul Chase ’49, P’84
SmithBarney
Mr. William J. Teuber M’76 EMC Corporation
Ms. Delia H. Thompson M’91, P’04 Colgate-Palmolive Company
Mr. Aaron M. Walton ’83
Mr. Gustavo A. Cisneros ’68
Mr. John J. McQuillan P’78 ’79 ’81 Mr. Lawrence W. Milas ’58, P’90 F.W. Olin Foundation
Mr. Robert L. Miller ’69, P’02 Main Street Management Services Inc. Mr. Luis A. Noboa III M’94 Pacific Fruit Inc.
Mr. Jay L. Owen ’65
Highgate Properties Inc.
Harris Bank/Lake Forest
Mr. James E. Cofield
Mr. Kevin C. Phelan
Cofield Properties Inc.
Meredith & Grew Inc.
Mr. Fred M. Condon ’69
Mrs. Elizabeth P. Powell M’76, P’01
Mr. Richard F. Connolly Jr. M’64
Ms. Janet A. Roberts ’89, M’95
UBS Financial Services
Fidelity Investments
Mr. Russell V. Corsini Jr. M’67, P’03
Mr. Edward I. Rudman
Deloitte & Touche LLP
Atlantic Trust Pell Rudman
Perelson Weiner LLP
Mr. William H. Cruickshank Jr. ’49, H’99
Mr. Eric G. Sarasin ’85
Mr. Robert E. Weissman ’64, H’94, P’87 ’90
Ms. Bronwen Cunningham M’84
Radiate Entertainment Group
Mr. Lawrence Weber W2 Group Inc.
Mr. Ronald G. Weiner ’66
Mr. Joseph L. Winn M’74 American Tower Corporation
Mr. Anthony C. Woodruff ’65 Moors & Mendon Capital LLC
Bank Sarasin & Co. Ltd.
CNY International
Mr. Charles W. Schmidt H’90
Mr. Paul R. Del Rossi
Mr. Lowell M. Schulman ’49
North Fork Partners
Mr. Mark T. Donohue ’88 Expansion Capital Partners LLC Ms. Martha Sloan Felch M’80
Gannett Welsh & Kotler Inc.
Sovereign Bank
Mr. John B. Landry III ’69
Mr. Paul Fireman H’94, P’00
Mr. William S. Schulz ’51 Mr. David C. Seidman ’60 Mr. Maurice J. Skoler ’61, P’96 Wachovia Securities LLC
Mr. Michael D. Sleeper ’63
Adesso Systems
Reebok International LTD
Imperial Distributors Inc.
Mr. Andronico Luksic ’76, H’04, P’04 ’06
Mr. Paul S. Gass ’59
Mr. Warren E. Smith M’80
Banco de Chile
The Help and Profit Company Inc.
Ms. Virginia Strauss MacDowell P’00 ’03
Mr. Leeds Hackett ’65
Duane Morris LLP
Mr. James C. Hays P’04
Ms. Diana Davis Spencer
Mr. William F. Markey Jr. M’64
Richard J. Snyder, Esq. ’60, H’94, P’93 ’01
The Wilmark Group
Hays Companies
The Shelby Cullom Davis Foundation
Ms. Ellyn A. McColgan H’05
Mr. James H. Herbert II ’66
Mr. Harry Sterling Jr. M’78
Fidelity Brokerage Company
First Republic Bank
Columbia Management Group
Mr. Richard G. McDermott Jr. ’65
Mr. James H. Hudgins ’74
Mr. Jefferson F. Vander Wolk ’53
US Trust Company NA
Superius Securities Group
Dr. Richard K. Miller P’02
Mr. Roland M. Jeannet M’75
Franklin W. Olin College of Engineering
Jeannet Associates
Mr. Robert B. Kervick ’73 Komtek Inc.
Ms. Michele Kessler
Mrs. Adelaide Van Winkle Mr. Jon F. Weber ’80, M’81 American Real Estate Partners, L.P.
Mr. Allyn C. Woodward ’63, P’88 ’93 Adams, Harkness & Hill Inc.
Mr. Gary L. Zwerling P’06
13
Jenny Herd Noonan ’81 Independent marketing consultant Jeremiah J. Noonan ’81 SpencerStuart, Managing Partner, Boston Office Gift to Babson
Profiles of Excellence Business and the Arts Dionne Thomas-Ahad was awarded a merit scholarship and an Access Fellowship that funded 100 percent of her tuition in Babson’s flagship two-year MBA program. She also won a place in the highly competitive MBA Entrepreneurship Intensity Track, which supports students with distinctive business plans in devoting their second year of study to launching their businesses by graduation. Dionne’s vision is to create a Pan-African Arts Institute devoted to “fostering the enrichment of communities in the U.S. and abroad through cultural arts education. Through a sustainable for-profit/notfor-profit hybrid, we will build the first high-end African Arts Institute and Cultural Report devoted entirely to promoting Pan-African Arts.” As a dance artist, Dionne is all too aware of the financial and operational constraints that plague arts organizations. At Babson, Dionne is getting the education, the experience, the connections, and the skills to make her vision a reality.
“Jenny and I have been long-time supporters of Babson. This gift is a continuation of our commitment to the school and our appreciation for all it has given us and the way in which it has shaped our lives and careers.”
⎞ ⎟− S T U D E N T ⎠
Dionne is working with several Historically Black Colleges & Universities (HBCUs) through a partnership established by Babson and a grant funded by the Ewing Kauffman Foundation and the Ford Foundation, to create innovative cases and curriculum focused on black entrepreneurs and minority-owned businesses. Last summer, Dionne worked closely with the Blank Family Foundation in order to develop an entrepreneurship curriculum for a new entrepreneurship high school in Atlanta. She also assisted Atlanta HBCU faculty members in developing case curriculum, and creating outreach programs to link students and faculty members at the college and high school levels. Throughout her Babson education, Dionne has creatively integrated her experiences and opportunities with her goal to develop a business that will significantly increase the impact and accessibility of the arts across geographic and socioeconomic boundaries.
Dionne Thomas-Ahad M’06 Two-year MBA Program
From Honors Student to Fulbright Scholar to Wall Street
Julian Simcock ’05
$100,000 gift for term scholarships (Noonan Women’s Leadership Award)
At Babson, Julian Simcock found the entrepreneurial mind-set and strong business education framework that he expected. But he also discovered the encouragement, latitude, and support to develop his liberal arts interests and ideals. As an Honors student, he took courses in Shakespeare and political science at St. Andrew’s University in Scotland. Under the guidance of one of Babson’s renowned creative writing professors, Mary O’Donoghue, Julian wrote a historical fiction piece about Octavian Augustus, the founder of the Roman
⎞ ⎟− S T U D E N T ⎠
Empire, for his honors thesis. He also co-founded the Babson Literary Magazine, a uniquely creative forum for artistic thought on campus. In the summer of his junior year, Julian joined the annual Babson trip to South Africa to teach entrepreneurship to South African teenagers. This experience allowed Julian to better understand the influence which entrepreneurship has as a powerful force in the alleviation of economic and social challenges. This insight formed the basis for the Fulbright project which he will complete in South Africa.
Julian’s future plans reflect his diverse interests and capabilities. He is developing a business plan for a biodiesel startup plant in Nebraska, working with the United Nations-affiliated organization Millennium Promise to rid the subSahara of extreme poverty, and he is working toward a degree in economic development at the University of Cape Town. Upon completion of his Fulbright scholarship, he will return to New York to fulfill a two-year commitment with Goldman Sachs.
Anthony C. ’65 and Sally Woodruff $1,000,000 gift to support general endowment
“We all have a great sense of pride and passion for what Babson stands for today. As a member of governance, it is important that we all contribute to our greatest need, endowment. Sally and I are happy to be able to make a leadership gift.”
Global Ambassadors
⎞ ⎟− FA C U LT Y ⎠
J.P. Jeannet, F.W. Olin Distinguished Chair in Global Business Robert Eng, Associate Professor, Marketing Edward Cale, Professor, Information Technology
Meet our “global ambassadors.” Under the auspices of the Glavin Center for Global Management, they are forging relationships in Asia, Latin America, and Europe and expanding Babson’s brand and reputation around the world. Although the types of partnerships formed by each of the direc
Ethics in All Things
Lydia Moland Assistant Professor of Philosophy Arts and Humanities BA, MA, PhD, Boston University
tors of our three institutes are unique to their regions of the world, the impact across the Babson community—faculty, students, and alumni—is universal. J.P. Jeannet, director of the Glavin Center for Global Management, and director of the Europe Institute, sees his role as “solidifying
⎞ ⎟− FA C U LT Y ⎠
“I’ve never been the sort of philosopher who wants to stay in the ivory tower of theoretical research, but rather one that likes to see how ethical frameworks operate in students’ lives and how they perceive ethical systems playing out in their own decisions.” In her three short years at Babson, Dr. Moland has played a leading role in the redevelopment of the College’s ethics curriculum. Integrating ethics throughout the curriculum rather than treating it as a
global thinking in the Babson community.” The Glavin Center does this in three ways: building strategic partnerships with top institutions; supporting global concentrations at both the undergraduate and graduate level; and building the capability to provide every Babson student with an international experience. The Europe Institute has
one of the largest and best engineering schools in Latin America. According to Cale, this joint MS has the potential to become a million-dollar revenue program for Babson. On the horizon, Ed expects to leverage Babson’s entrepreneurship expertise through more SEE programs in Latin America.
negotiated five alliances with leading European business schools in the last 16 months through a concept J.P. calls exchange currency. For example, MBA enrollments at one institution could be traded for undergraduate enrollments at another institution. J.P.’s goal for the next 12-15 months is to complete the roster with one or two partnerships for Babson with leading institutions in each European country. Ed Cale, the outgoing director of the Institute for Latin American Business (ILAB), says his goal is to “get as many people exposed to Babson as possible, because every time they are, they walk away sold on Babson.” The two most significant developments for ILAB in the last year were the successful Symposium for Entrepreneurship Educators (SEE) program at INCAE in Costa Rica, the number-one rated MBA school in Latin America, and the negotiation of a joint Master of Science program with Tec de Monterey in Mexico,
In Asia, Bob Eng says his proudest achievement is “ensuring that Babson has access to the most prestigious schools in Asia (Tsinghua in China, Hitotsubashi in Japan, and the Indian Institute of Management at Bangalore), and that they see that Babson brings them tremendous value.” Last year, Babson’s recognized expertise in entrepreneurship education resulted in a partnership with Dreamgate, a government supported organization in Japan that has responsibility for building the country’s entrepreneurship education. In China, the Asia Institute is currently seeking to expand Babson’s brand recognition with a consortium of “up and coming” educational, business, and government institutions that have the commitment and resources to develop quality entrepreneurship education. The ultimate goal is to “position Babson as the authority in entrepreneurship education in the region.”
separate class is fundamental to Dr. Moland’s belief that ethics is about habits and mind-set, not just big decisions. “The way you talk to your colleagues, the way you treat your customers, the way you treat people over whom you have authority, all of these things have ethical aspects to them,” she says. Dr. Moland is working to integrate ethical principles not only into a variety of courses but also cocurricular experiences such as the Coaching for Teamwork and Leadership Program (CLTP), where students are assessed and receive feedback
on how well they incorporate ethical decision making into business situations. Last spring, Dr. Moland received a residential fellowship from the American Academy in Berlin that will further distinguish her as a thought leader and extend the Babson brand in the international academic community. Next year, Dr. Moland will be integrating her global experience to enrich her work with Babson students back on campus.
Marc H. ’89 and Ruti K. Bell
Marc is Managing Director of Marc Bell Capital Partners Gift to Babson
$2 million gift to support merit- and need-based scholarshipsnce
“The cost of attending college is getting out of reach for many students. Our primary reason for donating money to support scholarships is to help promising students afford a Babson education and graduate with less of a debt load as they begin their careers.”
Babson Fast Tracker
⎞ ⎟− S T U D E N T ⎠
Lee Ablove M’05 Commercial Sales Manager, General Electric
Rashida Malcolm ’08 Babson Undergraduate Student
Maximizing Opportunities Rashida Malcolm knew when she applied to the Posse Foundation in New York for a full-tuition scholarship that a Babson education was her ultimate goal. Looking back on her first year at Babson, Rashida describes it as a “challenging, rigorous, and creative environment,” one that she already is benefiting from and in turn influencing. Rashida was quick to connect with the Center for Women’s Leadership (CWL) at Babson, receiving a Women’s Leadership Scholarship in her first year. She was elected CFO of Babson’s Black Student Union, where she helped to organize its charitable and student mentoring activities in the local community. In athletics, she was an unrecruited walk-on for the Beavers volleyball team,
⎞ ⎟− S T U D E N T ⎠
and already has made an immediate impact. Rashida predicts that the relatively young team will be a powerhouse to watch next year. Her first year at Babson prepared Rashida to take on an internship this past summer at Lehman Brothers in New York, where she worked as an associate in Lehman’s dining sector. Rashida’s Babson experience already has been inspirational, motivating her to take risks while providing the tools and community connections she needs to achieve her goals. Role models within her Posse have been another key to success. Rashida says, “You see others can do it and you realize you can, too.”
Lee Ablove, a commercial sales manager for General Electric, wanted an MBA degree to accelerate his career at GE, but which program was best for him? “Basically, everything you do in the business world, whether you’re part of a conglomerate or starting up yourself, is about creating your own business. That’s the skill set I wanted to develop, so I took a hard look at Babson.” Lee was quickly attracted to Babson’s Fast Track program, which provided the scheduling flexibility he needed and significantly shortened the time required to achieve the degree. Using some vacation time to attend the on-campus sessions one Friday each month, Lee got his MBA in just 27 months— while staying on the fast track at GE.
The benefits have been enormous. Lee’s Fast Track capstone project team defined a $1 billion incremental revenue stream for GE’s Health Care Group—and changed the way GE Health Care traditionally went to market. The program provided Lee with network opportunities beyond his expectations, building lifelong relationships with classmates who are investment bankers, clinical engineers, and in nontraditional business roles—all working together with Babson’s world class faculty. GE now has a more nimble, entrepreneurial manager who innovates, acts with integrity, and looks for marketplace opportunities in different ways. And Lee has developed the senior-level contacts he was seeking to explore future career opportunities within the GE Health Care unit.
Lyle Howland ’79 Founder and President of Howland Enterprises, Inc. $150,000 gift to support two new term chairs in marketing and finance Gift to Babson
“I wanted to make a gift that would help Babson maintain its competitive edge with peer institutions. Babson already has an impressive faculty. I hope that my gift strengthens the College’s ability to attract the best people to teach at Babson.”
A Misplaced Modifier Gordon Prichett Professor and Chairman, Mathematics & Sciences Division PhD, University of Wisconsin, Madison
⎞ ⎟− FA C U LT Y ⎠
Professor Gordon Prichett describes himself as a “misplaced modifier.” A recognized mathematics teacher, researcher, and author with a particular expertise in cryptology, Prichett doesn’t exactly fit the typical profile of a business school professor. But at Babson, faculty members with varied strengths are embraced and given the opportunity to excel, which Professor Pritchett has certainly done in his 25 years at the College. Throughout his career, he has enriched the Babson landscape by implementing his vision of “the importance of liberal arts in creating minds that communicate well, think creatively, analytically, ethically, and are compassionate as well as efficient.” As vice president and dean of faculty from 1987 to 1992, he solidified liberal arts as the underpinning of a good management
education, enhanced faculty diversity— increasing the number of women faculty members from four to 27—created the Honors Program, established the Language and Culture Center at a time when no language was offered at Babson, and set up the Speech and Math Resource Centers. His latest challenge is a project with the F.W. Olin School of Engineering and funded by a grant from the National Science Foundation to develop an intensive mathematics course on cryptology and coding theory. The course brings together business, engineering, and liberal arts students to instill a deeper understanding of the historic and contemporary applications of cryptology and coding theory to the world of electronic commerce —yet another of Professor Prichett’s unique contributions to the Babson education.
Managment: Practice and Passion The practice of management is a passion for Professor Donna Stoddard. As faculty director for the Foundation Management Experience (FME), she is committed to helping students “push the envelope” as they execute their business ideas, many of which have become more complex and global in their scope and operations. “FME is an exciting program that engages our entire community,” she says. “It’s a big reason why a lot of students choose Babson, so it’s important that we deliver and manage it well.” Professor Stoddard brings real world examples of best management practices to the classroom. Recently, she conducted research on minority businesses in Massachusetts and developed cases on how BlueCross BlueShield, Reebok, and Mikimoto leverage technology to adapt
to the changing marketplace. She is currently writing a book on IT management challenges with Charlie Field, an executive vice president at EDS, the global IT Consulting and Outsourcing firm. an executive vice president at UBS, the global investment banking and securities firm. “You’ve got to be out there talking to managers, understanding what is new and what is coming as it relates to practice,” she says. And she puts this learning into practice. For the past six years, she has served on the Board of Directors of the Boys and Girls Club of Boston, helping to create important developmental opportunities for urban youth. She currently serves—and is a driving force—on Babson’s Diversity Committee.
⎞ ⎟− FA C U LT Y ⎠
Donna Stoddard Associate Professor and Chair, Technology, Operations, and Information Management Division DBA, Harvard Business School
Gregory G. O’Brien M’83 P’07 Managing Director and Sector Head for Oil and Gas, Transportation, and Environmental Services for Bank of America $50,000 towards the MBA 50th Gift to Babson
“I hope my gift will continue to build the legacy of the school as competitive yet caring. It has been my experience that Babson genuinely cares about its student and alumni and wants them to succeed. I’d like my gift to focus on building this distinctive culture and sense of community.”
A Full Plate
⎞ ⎟− S T U D E N T ⎠
Brenda Lord is vice president of Asia-based Test Rite Products Corporation, a $1 billion company that does global sourcing for retailers in the United States. She is also a married mother of three girls under the age of 5, a volunteer leader in her church, and a student in Babson’s Evening MBA program. How does she manage all of these activities? She credits several professional women role models who demonstrated how one could effectively manage multiple commitments—and the flexibility of the Babson Evening MBA program. “Babson is very aware and accommodating of what it entails to be a professional and a graduate student. They continue to work on new class formats and offer a
variety of options and extracurricular experiences that fit into varying schedules, without diluting anything. They make it both manageable and worthwhile to pursue the degree,” she enthused. The applied focus of world-class professors and the extraordinarily diverse student population from a broad array of industries, disciplines, and countries of origin have made the Babson program particularly valuable to her. “I feel like I can apply every course that I take, right now on the job,” Brenda said. All of it contributes to her ability to develop real-time solutions for her company as they pursue new strategic directions for doing business in the U.S.
Brenda Lord Babson Evening MBA Student
Erick Briceno came to Babson to gain the tools he needed to make a difference in his native Venezuela—a country currently challenged by economic and social problems. Reflecting on his Babson education, Erick points to several experiences that have prepared him to be an entrepreneurial leader, with confidence in his ability to foster socioeconomic development in Venezuela and in the world. In his freshman year, Erick was the CEO of a 30-member, profitable studentrun business, called 19th Beaver. He helped to create and lead Work in Progress, a networking club in partnership with students from four area colleges who pooled their connections to identify internship opportunities. Most recently, he has served as president of the Babson chapter of Theta Chi, continuing his fraternity’s impressive efforts to raise money
for the Jimmy Fund and cancer research. Erick credits Babson with helping him to understand the importance of teamwork and how to be a more successful leader. “Every Babson professor makes a difference,” says Erick. This year, Professor Joe Ricciardi is helping Erick study economic systems, seeking new ways to leverage the dynamics of different markets to focus on social needs. The goal is to identify high potential strategies for stimulating regional economies and reducing poverty —no small dream! “Babson has given me the means to transform and focus my vision into something that I can put my arms around and do what an entrepreneur would do: See a problem, identify the opportunity, seek the resources, create a team, and start implementing.”
Making a Difference around the World
⎞ ⎟− S T U D E N T ⎠
Erick Briceño Marquez ’06 Babson Undergraduate Student
Thomas E. Lewis M’81 Fidelity Foundation Program Director $50,000 gift to support faculty development Gift to Babson
Maria Minniti Associate Professor of Economics and Associate Professor of Entrepreneurship PhD, New York University MS, Auburn University BA, University “LaSapienza” of Rome, Italy
Understanding Entrepreneurial Behavior Professor Grewal creates tremendous value for his students and colleagues, for the business community, and for the practice of marketing in general. A thought leader in pricing, retailing, services, marketing research, and related Internet issues, he has been recognized with a 2005 Lifetime Achievement in Behavioral Pricing Award and the 2003 American Marketing Association Award for Innovative Excellence in Marketing Education. “The unique culture at Babson with its integrated curriculum promotes a synergy among disciplines that is rarely found at other schools,” he says. Along with teaching in Babson’s undergraduate, graduate, and executive education programs, he co-edits the Journal of
“I feel very lucky to have gotten my MBA at Babson. It helped me broaden my background and position myself in the world of financial services. Babson gave me the tools to take my career in a different direction so that companies could envision me in new roles.”
Professor Maria Minniti is deeply interested in the motivation behind entrepreneurial behavior. Why are some individuals more inclined toward entrepreneurial activity than others? How does it relate to gender, ethnicity, or cultural parameters? The answers to these questions have significant policy implications and determine what actions governments and organizations must take to effectively stimulate their economies. “For example,” says Dr. Minniti, “if we want to increase the number of women entrepreneurs starting new businesses, we need to understand the variables that motivate them to take action, be it tax reductions, child care availability, or something else.” This year, Dr. Minniti was named the Interim Research Director of the Global Entrepreneurship Monitor (GEM), the largest annual study of entrepreneurial activity around the world. The main purpose of GEM is to study the relationship
between entrepreneurship and economic growth, particularly highlighting the differences between developed and developing countries. Dr. Minniti is also the director of the GEM Research Group on Women in Entrepreneurship, and currently serves as an advisor to the United Nations Development Program and Poverty Reduction Network. Babson is a “perfect fit” for Dr. Minniti because of its focus on global entrepreneurship. All three of the College’s academic centers, the Arthur M. Blank Center for Entrepreneurship, the William F. Glavin Center for Global Management, and the Center for Women’s Leadership, have provided funding to support Dr. Minniti’s research agenda. And because of her involvement, Babson students have access to original, cutting-edge, and ongoing insights that enhance their decision making on economic issues around the world.
⎞ ⎟− FA C U LT Y ⎠
Retailing, one of the leading research publications in the field, has published more than 65 articles on marketing, mentors junior faculty research activities, is currently writing a major textbook Marketing for McGraw-Hill, and consults with top business firms. “The respect for Babson within the business community helps me to bring high-caliber speakers and executives into my classes,” he says. “The opportunity to interact with top business leaders helps students in tackling current and important issues in the field, such as multichannel integration and transitioning from bricks to clicks.”
Creating Value for Babson
⎞ ⎟− FA C U LT Y ⎠
Dhruv Grewal Professor of Marketing Toyota Chair in Commerce and Electronic Business PhD, Virginia Tech
ess of
with
Alumni Engagement “The partnership between alumni and the College generates the energy, creativity, and resources that help to sustain our standard of excellence and to propel the College to the next level of achievement.” – Peter R. Ramsey
Fostering Partnerships and Sustaining Our Standards of Excellence • Robert E. Weissman ’64 and his wife, Janet, announced a $20 million gift to Babson, the
momentum as we embark on an important
largest donation from an individual or a family
year for Babson. Another successful year of
in the history of the College.
planning and early campaign solicitations will
• Total funds raised in the nucleus phase of
help set the stage for the public phase, which
the upcoming capital campaign reached
will engage our entire alumni community. As
$35 million.
we look to the future, we will be focusing on
• Fund-raising for FY05 generated $8.8 million in total gifts, including $6.1 million
two central objectives: • Expanding the reach of our Alumni
for the Annual Fund. Gifts from 6,300
Association by offering more impactful
alumni and parents and 500 corporations
programming that engages alumni through-
and foundations helped to support our
out the United States and internationally.
outstanding students and faculty.
No matter where our alumni are in the
• Two new endowed faculty chairs were established, one by Jefferson F. Vander Wolk ’53 and Peter R. Ramsey Vice President for Development and Alumni Relations BA, St. Lawrence University
These accomplishments give us great
the other by Brian M. Barefoot ’66, P’01, his wife, Pam P’01, and his son, John M’01. Three
world, they should feel connected to one another and to the College and engaged in what’s happening at Babson. • Improving our current fund-raising trajectory
new term chairs were established, two by N.
by building enthusiasm and support for
Lyle Howland ’79 and one by a joint commit-
Babson’s strategic initiatives.
Babson’s faculty, students, and administration
ment from the European Executive Alumni
greatly appreciate the support and participa-
Board, chaired by Muhammad H. Habib ’80.
tion of our alumni community. The partner-
• Babson alumni at PricewaterhouseCoopers
We are in a great position to draw upon our recent successes. We look forward to joining
ship between alumni and the College generates
established our newest corporate affinity
with our alumni, parents, and friends to advance
the energy, creativity, and resources that help
group. They joined 11 other corporate and
Babson’s distinctive educational mission.
to sustain our standard of excellence and to
career affinity groups that are actively gener-
propel the College to the next level of achieve-
ating valuable opportunities for professional
ment. Significant accomplishments from the
development and alumni networking.
past year reflect the strength of our alumni community and its commitment to Babson:
Alumni Association Board Initiatives for 2005-2006
Coaching — improve alumni engagement with
Babson Alumni Resource Network (BARN) — link
Career Affinity Groups — participate more
current undergraduate and graduate students
seasoned alumni with students and alumni
actively in the financial services, technology,
by building on the success of the Coaching for
seeking consulting services for their businesses
and entrepreneurship affinity groups
Leadership and Teamwork Program and the
Back to Babson Weekend — work with Alumni
Communications — communicate the mission
Alumni Mentor Program.
Relations to increase alumni attendance at the
of the Alumni Association through various
Black Alumni Affinity Group — work with campus
annual reunion and homecoming event
media in a unified, consistent manner
offices to expand the affinity group and con-
Boston Alumni Club — restructure to better serve
Future Initiatives Evolution — expand current
nect it more closely with the greater diversity
the needs of alumni in Boston and the greater
initiatives to increase national and interna-
initiative of the College
New England area
tional involvement and engagement
Philanthropy by Source and Purpose for FY 03, 04, and 05
In this report, you have read about faculty
Giving by Source (in millions)
Alumni
Looking Forward
members who are engaged with students in
FY03
FY04
FY05
59.6%
61.2%
66.7%
8.2%
9.1% 15.7% 8.4%
and networking. You also have learned
$8.87
in the College, who make many of these
exciting projects, both inside and outside the classroom. You have seen how alumni are making a difference in mentoring, coaching,
Parents Corporations & Foundations Faculty, Staff and Friends
23.5% 8.7%
10.4% 19.1% 9.4%
Total Dollars in millions
$9.71
$8.76
more about the critical role of investors impacts possible. An investment in Babson creates continuing advantages for our students—and
Giving by Purpose
everyone in the Babson community benefits from the growing academic reputation of
Faculty Support
FY03 9.3% 17.6%
FY04 13.6% 14.4%
Financial Aid
18.4%
27.6%
Unrestricted
FY05
the College at home and abroad. But to
27.5%
continue along this path, we need signifi-
15.3%
cantly greater resources. That is why we are
24.2% Academic Programs/Facilities
Total Dollars in millions
54.7%
$9.71
44.4% $8.76
preparing for the largest capital campaign in Babson’s history.
33.0%
I am tremendously excited about the
$8.87
opportunities before us. With your participation and support, along with all members of the Babson community—on and off campus, in countries around the world—I know that we will achieve what we have set out to accomplish. — Brian M. Bearfoot
Vision Babson College will be the globally recognized leader in entrepreneurial management education. We will be known for thought leadership that advances management practice and theory. We will be respected as an academic community of committed, diverse, and highly qualified students, faculty, and staff. Our innovative management programs will be recognized for excellence. Babson graduates will demonstrate entrepreneurial and ethical leadership in their professions and communities throughout the world.
Mission Babson College educates men and women to be entrepreneurial leaders in a rapidly changing world. We prepare them to identify opportunities and initiate actions that result in genuine accomplishment. Our innovative curricula challenge students to think creatively and across disciplinary boundaries. We cultivate the willingness to take and manage risk, the ability to energize others toward a goal, and the courage to act responsibly. Our students appreciate that leadership requires technical knowledge as well as a sophisticated understanding of societies, cultures, institutions, and the self. They welcome the challenge of learning continuously and taking responsibility for their careers. Our students will be key contributors in the world’s established enterprises as well as emerging ventures. At Babson, we collaborate across disciplines and functions to create knowledge and apply integrative solutions to complex problems. We reach across institutional and geographic boundaries to forge relationships with individuals and organizations who share our commitment to excellence and innovation.
bi Babson Park, MA 02457-0310
Phone 781 · 235 · 1200
w w w.babson.edu