MIT Sloan 2018–2019 Year in Review

2018 / 2019

A YEAR MADE TO MATTER

A LO O K BAC K AN D AH EAD

Dear Alumni and Friends, We are proud to offer our community the 2018–2019 “A Year Made to Matter” report—the annual review of where we have been and where we will go with your continued support.

This year, one thing is clear to all of us in the MIT Sloan community: Momentum is on our side.

Our commitment to driving positive change enables us to propel advances that will define the future of management education for generations to come and that will empower our leaders to create a more inclusive economy.

Our success is tied to the work we have done and can only do together—from launching landmark, cross-disciplinary initiatives like the Schwarzman College of Computing to advancing groundbreaking research in innovation and analytics; from making critical program additions to expanding local and global opportunities for students and faculty to take on economic development issues. None of this would be possible without the ongoing participation of alumni and friends like you.

When you consider the global salience of the socially minded technologies and models that we invent here; the applications of our models to improve health, tackle climate change, and create better organizations; and the impact of our programs and leaders working in and for the world, it feels as if more is possible now.

As you read our latest report, we hope you will find as many reasons as we do to reflect positively on the past year and to welcome the year ahead. Together, we can and will make our mission to improve the world matter—not just for the few, but for all of humankind.

Sincerely,

K AT H RY N H AW K E S Associate Dean Office of External Relations

SM ARTER TOGETH ER

The “multiplier effect” is alive and well at MIT Sloan, pervading every aspect of institutional dynamics. Day in and day out, our leaders are pursuing crosscutting programs and initiatives that set the standard for the future; bridge verticals of thought and practice in the broad realms of leadership, innovation, and analytics; and propel meaningful collaborations across the school and Institute.

“Here at MIT Sloan, we live by a simple but pretty tough standard: ‘If the world needs it, and we don’t do it, then who will?’ This work isn’t just interesting, uniquely rigorous, and cross disciplinary—although it is all three.

But more than that, it’s crucial to the future of the planet: because we come together to use our knowledge to tackle humanity’s greatest global challenges.”

David Schmittlein, John C Head III Dean, MIT Sloan School of Management

Ne

ls o n

ing P. Repenn

R E M OV I N G BA R R I E R S TO CO L L A BO R ATI O N FO R A B E T TE R D I G ITA L WO R L D

Nelson P. Repenning’s (PhD, ’96, Associate Dean of Leadership and Special Projects; Distinguished Professor of System Dynamics and Organization Studies; Faculty Director, MIT Leadership Center) role as co-chair of the newly established Schwarzman College of Computing Organizational Structure working group might have sounded like a dizzying assignment: His was one of five working groups tasked with shaping the college’s future. But world-class computer scientists and computational scientists are people, too, and thus confront all the challenges experienced by any large organization facing a rapidly changing environment. Drawing on the research and experience of several MIT faculty who have studied organizational design, Repenning’s committee proposed a novel structure that will allow computer science research and computational thinking to flourish at MIT.

Significantly, MIT Sloan faculty and personnel have been integral at every step of the new college’s development, their expertise deeply interwoven in devising pathways for its collaborative structure. MIT Sloan participants on the new college’s task force included Dimitris Bertsimas (Associate Dean for Business Analytics; Boeing Leaders for Global Operations Professor of Management; Professor, Operations Research); Susan Silbey (Leon and Anne Goldberg Professor of Humanities and Professor of Sociology and Anthropology, Anthropology Program; Professor of Behavioral and Policy Sciences, MIT Sloan; Affiliate Faculty, MIT Institute for Data, Systems, and Society); Danielle Li (Class of 1922 Career Development Professor and Associate Professor of Technological Innovation, Entrepreneurship, and Strategic Management); James B. Orlin (E. Pennell Brooks [1917] Professor in Management and Professor of Operations Research); Georgia Perakis (William F. Pounds Professor of Management; Professor of Operations Research and Operations Management; EMBA Faculty Director; and Co-Director, Operations Research Center); Wanda Orlikowski (Alfred P. Sloan Professor of Management and Professor of Information Technology and Organization Studies); Retsef Levi (J. Spencer Standish [1945] Professor of Management; Professor of Operations Management; and Co-Director, LGO Program); and Ishan Shah, MBA ’20.

2

//

MIT SLOAN SCHOOL OF MANAGEMENT

BU ILDIN G OUT INNOVATION ECOSYSTEMS, AT HOM E AN D AROUN D TH E GLOBE

Fio na

M u r ra y

Talent is evenly distributed around the globe. But when it comes to geographical locales where innovation thrives, the world remains unbalanced. That’s why leaders like Fiona Murray (William Porter Professor of Entrepreneurship; Associate Dean for Innovation & Co-Director MIT Innovation Initiative; Faculty Director, Legatum Center) are educating aspiring entrepreneurs around the globe in the creation and scaling of “innovation ecosystems.” Through the MIT Regional Entrepreneurship Acceleration Program (REAP), Murray and MIT Sloan colleagues bring the traditional triad of university, government, and corporate stakeholders together with local entrepreneurs and risk capital experts to design scalable innovation and entrepreneurship strategies and action plans that drive change.

While the REAP model is one that has been proven out internationally since 2012, the first North American team joined the program in 2016 from Nova Scotia, and the first domestic team was established in 2018 to inspire, support, and sustain entrepreneurship in Kentucky.

With the present construction of the new 40,000 square foot Innovation and Entrepreneurship Hub (E38) as part of the MIT Kendall Square project well underway, innovation and entrepreneurship are being enhanced more than ever, close to home, with the wider Boston community having a new hub to call their own.

M AKIN G BUSIN ESS ANALY TICS AN INTERDISC IPLINARY STUDY AN D CORE LEADERSH IP COM PETENCY

D im

i t r is B e r t si m a s

Dimitris Bertsimas (Associate Dean for Business Analytics; Boeing Leaders for Global Operations Professor of Management; Professor, Operations Research)—one of MIT Sloan’s most prominent researchers and innovators in the use of analytics and big data across multiple disciplines—has been named Associate Dean for Business Analytics. Bertsimas now oversees a vast majority of MIT Sloan’s analytics courses, program offerings, and research as the faculty director of the Master of Business Analytics program; faculty director for the Course 15 undergraduate program in business analytics; a co-developer of the business analytics certificate for MIT-degree program students; and a steward of non-degree options in business analytics for MIT. While the Master of Business Analytics degree program has already become the foremost analytics program worldwide after being launched in 2016, Bertsimas will partner with Deputy Dean Ezra Zuckerman Sivan and Senior Associate Dean Jake Cohen to perpetuate the practices of business analytics throughout the school.

Notably to this end, Bertsimas will offer support to faculty group heads and help identify potential faculty who may assist in the school’s growth in business analytics.

“MIT has a bold vision for rethinking computing-related research and education to respond to today’s and tomorrow’s challenges and opportunities. The Institute plays a unique role in American and global higher education, and it’s exciting to be coming back.”

Daniel P. Huttenlocher, SM ’84, PhD ’88, Inaugural Dean of the MIT Schwarzman College of Computing

Da

nie r l P. H ut tenloche

For his part, Bertsimas has long been dedicated to developing the principled, analytically minded leaders of tomorrow, stemming from his own canon of research and teaching around complex data mining and computational modeling applied to improve drug trials, speed novel patient treatments, and drive fair and effective resource allocation. Over his impressive career, Bertsimas has explored every aspect of innovating the ways in which computing power can be used to extract useful data from chaotic information. And with Bertsimas’s appointment coinciding with the recent establishment of the Schwarzman College for Computing, the school continues to lead on the edge of management education for the digitally driven big data era.

A YEAR MADE TO MATTER

//

3

FACU LT Y

Defining New Knowledge Frontiers Epitomizing rigor, relevance, and revolutionary potential in their work, our faculty at MIT Sloan have long been the best and brightest in their fields. As the school seeks to define the knowledge frontiers of the future, a number of faculty have turned their focus to studies undergirded by analytics, artificial intelligence (AI), machine learning, and big data to explore business ethics, economic development, and productive human-machine collaboration.

ERIK BRYNJOLFSSON

Highlights from the 2018 AI Index The 2018 AI Index, prepared with the assistance of MIT Sloan’s own professor Erik Brynjolfsson, PhD ’91 (Schussel Family Professor of Management Science; Professor, Information Technology; and Director, MIT Initiative on the Digital Economy), contains striking highlights regarding the development and adoption of AI and machine learning technologies. Highlights include: › AI systems continue to make impressive gains in image recognition, language translation, object recognition, and other tasks. › Investment in AI startups doubled between January 2015 and January 2018, with venture capital funding quadrupling since 2013. › As AI research increases dramatically around the world, Europe and China saw the highest output of AI-related research. (Work in China has increased by 150 percent over the past decade.) › Job openings requiring deep learning skills grew by a factor of 35 between 2015 and 2017.

Even with these dramatic technological advances, Brynjolfsson himself posits that growing machine intelligence provides opportunities to meaningfully redesign jobs and reengineer business practices for the good of human workers and productive collaboration. His view is reinforced by primary research into and analysis of the occupational tasks that are optimal for machine learning and automation, as featured in May 2018’s American Economic Association Papers and Proceedings.

4x

150%

35

Increase in investment in AI startups between 2015 and 2018

Increase in venture capital funding in AI startups since 2013

Increase in AI research in China over the last decade

Growth factor of job openings requiring deep learning skills between 2015 and 2017 Erik Brynjolfsson

2x

4

//

MIT SLOAN SCHOOL OF MANAGEMENT

Re n

ée

lin Rich ardson Gos

e

R E N É E R I C H A R DS O N G OS L I N E E X A M I N ES W H O TRUS TS BOTS — A N D W H Y TH AT M AT TE R S

As AI moves into influencing everything from shopping choices to medical diagnoses, organizations are forced to interrogate: In the eyes of customers, when are technological helpers welcome, when not, and why does that matter? Renée Richardson Gosline (Senior Lecturer and Research Scientist, Marketing) and PhD student Heather Yang sought answers to these questions in a recent study. By examining the behavior of customers based on their preferences for “System 1” (instinctual) or “System 2” (deliberative) thinking and analyzing how subsets chose to solicit human or AI help across a range of scenarios, Gosline and Yang found that “algorithmic aversion” (read: bot suspicion) was the norm for the majority of participants. They also uncovered a linear positive relationship between System 2 thinking and “algorithmic appreciation” with the co-variable of self-rated social anxiety. Based on these results, Gosline is advocating for a bias-reducing buddy system that builds bridges between data and behavioral scientists, and is seeking support to investigate the link among System 2 thinking, algorithmic bias, and social equality.

S I M O N J O H N S O N A N D J O N ATH A N G RU B E R PRO P OS E A N E W TAC K TO J UM P -S TA RT A M E R I C A’S E CO N OM I C E N G I N E

Si

mo

n Jo hns o n

In some coastal cities, the benefit of investment in scientific research and development is tangible in the form of more resources, higher returns, increased innovation, and skilled talent. But outside of America’s well-capitalized science and technology supercities, striking income disparity and economic instability abound. In a lauded new book released in spring 2019, economists Simon Johnson, PhD ’89 (Ronald A. Kurtz [1954] Professor of Entrepreneurship; Professor, Global Economics and Management) and Jonathan Gruber (Ford Professor of Economics, MIT) issue an evidence-backed entreaty to policymakers: increase early-stage public investment in science R&D in educated and affordable metropolitan areas, and experience massive capital and social returns. In Jump-Starting America: How Breakthrough Science Can Revive Economic Growth and the American Dream, Johnson and Gruber make the economic case for a profound public commitment to science, unpack relevant case examples, and propose regionalized approaches—inclusive of innovation dividends—ready for implementation for all Americans and for regulation.

Da

ni e l

l e Li

DA N I E L L E L I D E TE R M I N ES TH E R E A L-WO R L D C A S E FO R TH E PE TE R PR I N C I PL E

Popularized in the eponymous 1969 book, Dr. Laurence J. Peter’s The Peter Principle famously suggested an explanation for a familiar paradox: In many organizations, it would seem that individuals “rise to the level of their incompetence.” Danielle Li (Class of 1922 Career Development Professor; Associate Professor, Technological Innovation, Entrepreneurship, and Strategic Management) and her co-researchers recently worked to find out whether this piece of popular wisdom held up to analysis in modern organizational contexts. Mining datasets from 131 firms, Li and colleagues analyzed the outcomes of promoting top sales performers into management roles. While the team’s analysis suggested that Peter was right all along in demonstrating that individual performance is negatively correlated with managerial performance, Li believes that a future of “dual career ladders” and other flexible models for promotion is on the way and waiting to be proven out.

A YEAR MADE TO MATTER

//

5

New MIT Museum

IN TH E SQ UARE

6

//

MIT SLOAN SCHOOL OF MANAGEMENT

Innovation and Entrepreneurship Hub (E38)

Building Up the Innovation District The Kendall Square mixed-use district development project continues, with many areas currently in build-out slated for completion within the next 18 months. Ever since obtaining a special-use permit in 2016, MIT has been working in close collaboration with an enthusiastic local community, organizations, and businesses to reimagine Kendall Square as the vibrant, global outpost of the future. Current plans will add six buildings and 1.8 million square feet of lab, office, residential, retail, cultural, and academic space, as well as more than two acres of programmed open space for innovation activities. › A new graduate residence hall will provide around 450 muchneeded living units and common spaces, including quiet study rooms, a family lounge, a playroom, terraces, and multipurpose rooms to accommodate and support the school and Institute’s expanding community. › Adjacent to the new graduate residence hall, the new Innovation and Entrepreneurship Hub (E38) will serve as the epicenter of the Kendall Square innovation district and the new home of MIT’s Innovation Initiative, in addition to the Admissions Office and a new Forum. Purpose designed to promote the cross-pollination of ideas, E38 will include 40,000 square feet of dedicated, open, multiuse space for MIT entrepreneurs and innovators. › The MIT Museum will take up residence in the nexus between the school and the Institute, offering up 57,000 square feet of galleries, classrooms, meeting areas, and a makerspace to engage visitors in programming and experiences that bridge science, art, and industry.

Graduate Residence and Childcare (E37)

A YEAR MADE TO MATTER

//

7

ADM ISSIO NS

A Strong Showing With the school’s application pool remaining highly competitive across all programs in 2018–2019, our incoming classes comprise the same smart, principled, innovative leaders we have always welcomed. While the overall number of applications for the MBA program declined from last year, the quality of applicants remained steady.

M BA (I N C LU D I N G LG O)

U N D E RG R A D UATE CO U R S E 15 PA RTI C I PATI O N

sophomores, juniors, and seniors

126

56

majors

minors

180 70

37

%

O F 2 019 M I T G R A D UAT I N G C L A SS W H O TO O K AT L E A S T O N E C O U R S E 15 C L A SS

U N D E RG R A D UAT E R E S E A RC H O P P O R T U N I T Y P RO G R A M (U RO P) P ROJ E C T S O FFE R E D BY 51 M I T S L OA N P RO FE SS O R S

FI R S T Y E A R S T U D E N T S E N RO L L E D I N 15.0 0 0 — E X P L O R AT I O N S I N M A N AG E M E N T

I N TE R N ATI O N A L C ITIZE N

60

70%

A DM IT R ATE

AV E R AG E G R E

9%

167.6

D E M O G R A PH I CS

42%

A DM IT R ATE

AV E R AG E GM AT

15%

727

41.1% women

AV E R AG E E X PE R I E N C E

5

years

I N TE R N ATI O N A L C ITIZE N

116

85%

AV E R AG E E X PE R I E N C E

A DM IT R ATE

AV E R AG E GM AT

AV E R AG E E X PE R I E N C E

15.36

11%

728

14

women

months

E X E C U TI V E M BA (E M BA)

D E M O G R A PH I C S

42.2% women

months

S LOA N FE L LOWS (S FM BA)

C L A SS S IZE

I N TE R N ATI O N A L C ITIZE N

D E M O G R A PH I CS

C L A SS S IZE

I N TE R N ATI O N A L C ITIZE N

124

13%

32.3%

104

71%

A DM IT R ATE

AV E R AG E E A S CO R E

AV E R AG E E X PE R I E N C E

52%

152

14

A DM IT R ATE

women

AV E R AG E E X PE R I E N C E

32.1% 8

416

D E M O G R A PH I C S

C L A SS S IZE

40%

(q)

I N TE R N ATI O N A L C ITIZE N

M A S TE R O F FI N A N C E (M FI N)

M A S TE R O F BUS I N ESS A N A LY TI CS (M BA N) C L A SS S IZE

C L A SS S IZE

//

MIT SLOAN SCHOOL OF MANAGEMENT

17 years

D E M O G R A PH I C S

21.2% women

years

M A S TE R O F S C I E N C E I N M A N AG E M E N T S T U D I ES (M SM S)

PH D

C L A SS S IZE

I N TE R N ATI O N A L C ITIZE N

D E M O G R A PH I CS

C L A SS S IZE

I N TE R N ATI O N A L C ITIZE N

11

91%

17

29%

A DM IT R ATE

AV E R AG E GM AT

AV E R AG E E X PE R I E N C E

A DM IT R ATE

54%

717.5

4.6

5%

54.5% women

years

D E M O G R A PH I C S

52.9% women

AV E R AG E G R E

167 (q)

164 (v)

The MBA Early Admission Offering With the new addition of an MBA Early Admission option, the school has yet another way to attract leading candidates from around the world (as well as retain the talented graduates of MIT). Viewed as a powerful recruiting tool to increase MIT representation in the MBA program, as well as a flexible option for extraordinary college seniors looking to secure their seats in an upcoming MBA class, an MBA Early Admission offering was rolled out in 2018. The first class of students has been admitted and is slated to enroll within a 2–5-year window, commensurate with gaining valuable work experience.

Dawna Levenson

M BA E A R LY A DM I SS I O N S D E P OS ITS R E C E I V E D

I N TE R N ATI O N A L C ITIZE N

D E M O G R A PH I C S

126

16%

37.3%

A DM IT R ATE

AV E R AG E GM AT

AV E R AG E G R E

29%

738

165 163

women

(q)

(v)

“Early Admission offerings are part of the next iteration of how people are going to be thinking about and applying to MBA programs. There is presently a large contingent of top performers thinking about MBA programs as college seniors. In order to attract the promising, principled, and innovative leaders of our future, we need to be playing in this space.”

Dawna Levenson, SB ’83, SM ’84, Assistant Dean of Admissions

A YEAR MADE TO MATTER

//

9

STU DENT E XPERIEN C E

Taking Action to Build Bridges There are no quick fixes for America’s deep economic, cultural, and geographic divides. But addressing these divisions starts with dialogue, study, and—most important—collaborative action. That’s the goal of MIT Sloan’s newest Action Learning lab, “USA Lab: Bridging the American Divides.” Developed through a collaboration involving MIT Sloan’s Good Companies, Good Jobs Initiative; MIT Sloan’s Action Learning program; and the MIT Mens et Manus America Initiative, USA Lab gives participating students the opportunity to gain firsthand experience in conducting economic and civic development fieldwork on issues of social import. Working alongside community, business, and nonprofit partners, USA Lab teams to date have completed projects in rural regions and small cities coast to coast.

10

//

MIT SLOAN SCHOOL OF MANAGEMENT

In a noteworthy recent example, a USA Lab team worked with the South Carolina Association for Community Economic Development (SCACED) to conduct a feasibility study exploring the potential for a new civil rights museum in Orangeburg, South Carolina. The proposed location, at the All Star Bowling Lanes, holds poignant significance: In 1968, the bowling alley was the site of a student civil rights protest against segregation that preceded the horrific “Orangeburg Massacre,” in which three young African American men were killed and more than two dozen protesters were injured. The MIT Sloan student team conducted research to deliver cost estimates, recommendations for site planning, and high-level concepts for a commemorative memorial museum and surrounding infrastructure.

Dela Gbordzoe

“Our USA Lab project in Orangeburg transformed the way I approach and understand racial divides in America. From meeting with local and state leadership to visiting the Legacy Museum and the National Memorial for Peace and Justice in Montgomery, I felt how far our country has come from slavery to the present day—but also how far we still have to go. I really believe that our feasibility study will truly speak for a community whose voices have previously been suppressed.”

Dela Gbordzoe, MBA ‘19College of Computing

A YEAR MADE TO MATTER

//

11

CAREER DEVELO PM ENT

Designing Pathways to Future Careers C A R E E R S U PP O RT FO R E V E RY S TAG E — E A R LY C A R E E R TO E X E C U TI V E

MBA, LGO, MSMS

MFin

MBAn

SFMBA

EMBA

ALUMNI

Under the inaugural leadership of Assistant Dean Susan Brennan, the Career Development Office (CDO) has redesigned the student experience around careers, offering students on all career paths more opportunities to customize their career exploration and integrate resources from across the broader MIT career community into their MIT Sloan experience.

N E W C A R E E R PRO G R A M S, N E T WO R K I N G O PP O RT U N ITI ES,

N E W PE E R S U PP O RT A N D A LUM N I E N GAG E M E N T PRO G R A M S

A N D R ES O U RC ES FO R S T U D E N TS A N D A LUM N I

To meet the needs of a diverse and entrepreneurial community, CDO has expanded the career community, adding:

› Your CDO—a new career portal to bring career communities, jobs, events, resources, and curated content together in one place, organized by industry, affinity, and program.

› MBA Core Fellows, in collaboration with the MBA Program Office and the MIT Leadership Center, a program that pairs student leaders with first-semester students for recruiting mentorship.

› Industry fairs scheduled throughout the fall semester to allow students to meet company representatives and learn about new industries and opportunities during their lunch breaks on campus.

› MIT Sloan Industry Advisors Program, a pilot program that brings senior industry expertise and guidance to students exploring specialized career paths in emerging fields and industries.

› Enhanced pre-matriculation resources for early-career students, including an online summer career course to give MBA students early access to self-assessment and career preparation resources.

s an

B re n n a n

› A redesigned MFin Boot Camp, MBA Career Core, and MBAn Career Core to align activities more closely with students’ career interests and provide more detailed information about the market.

Su

› Innovative career programming for executive-level MBAs focusing on career advancement and switch strategies, and creating intelligent networks to support career shifts and advancement.

“This has been a year of transformation, and we are excited about all the benefits that our new programs, events, and resources bring to MIT Sloan students and employers.”

Susan Brennan, Assistant Dean, Career Development Office

M IT S LOA N C A R E E R PATH S: L A RG E COM PA N I ES, M I D -S IZE D COM PA N I ES, A N D S TA RT U PS

In 2019, MIT Sloan graduates accepted positions across a wide range of career paths—from early-stage startups to large, established companies.

About half accepted roles at companies that hired one or two Sloanies, often in unique roles within the company.

M BA › Amazon › Amgen Inc. › Bain & Company Inc. › Boston Consulting Group › Didi Chuxing Technology Co. › EY-Parthenon

› › › › › ›

Google IBM JPMorgan Chase & Co. McKinsey & Company Microsoft PwC Strategy&

› › › › › ›

› › › › › ›

frog design inc.

Grab Greentech Capital Advisors Lionsgate Mount Sinai Health System Noctua Partners

AlphaSimplex Group, LLC Arctaris Royalty Partners Arterys Barings Chewy Coursera

12

//

MIT SLOAN SCHOOL OF MANAGEMENT

M Fi n › Citigroup Inc. › EY › Goldman Sachs Group, Inc. › Morgan Stanley

M BA n › Amazon › BCG GAMMA › McKinsey & Company

› › › › › ›

› › › › › ›

nuTonomy Palantir Technologies PEAK6 Investments, LLC Pivotal Commware pymetrics Rent the Runway

Routable AI SpaceX Spherical Analytics Stitch Fix Underscore VC Quantbot Technologies, LP

EXECUTIVE EDUCATION

Ahead of the Learning Curve While MIT Sloan Executive Education has been a long-time pioneer in offering rigorous and applicable non-degree programs to global business professionals, the office’s latest innovations span both content and delivery mechanisms. Over the past two years, the office launched an expanded array of courses on timely topics— from blockchain and artificial intelligence to talent analytics and the Internet of Things—delivered online, in person, or via both formats. As a result, participation in Executive Education open enrollment programs has increased at a historically rapid rate, from 5,000 to 15,000+ participants.

Throughout this time of accelerated growth, MIT Sloan Executive Education’s focus has remained clear and constant: to support senior and developing business leaders across industries to solve problems in a complex, interconnected, and ever-more digital age, using the philosophy and practice of “mind and hand” for enduring impact. Course and program highlights from the past year include: › Offering new open enrollment courses on “Innovating in Existing Markets” to help companies revive mature products and services; “Future Family Enterprise” to equip family business leaders with strategies and frameworks for adapting to a technology-enabled age and ensuring multigenerational success; and “Cybersecurity for Managers” to provide enterprise leaders with the playbook to drive resilient, cyber-aware cultures. › Working closely with global businesses to solve problems and build capabilities, such as developing leadership excellence at American Tower as they expand their wireless infrastructure operations in Africa; traveling to the Philippines to deliver a global infrastructure program focused on resilience in urban systems for Arup; collaborating with the Ruderman Family Foundation’s LINK20 initiative on a unique scholarship-based program for “Leadership in the Digital Age,” providing disability and inclusion advocates with the tools to become high-impact social influencers; and engaging with electrical wiring manufacturer Leviton to provide MIT courses (on topics from negotiation to innovation to product development) to managers and executives of this $2 billion global organization with over 6,500 employees.

› Developing and delivering truly unique executive learning experiences spotlighting MIT’s perspectives and expertise, such as the F1 Extreme Innovation Series led by MIT Sloan faculty— and featuring Alan Mulally, SM ’82 and Carly Fiorina, SM ’89 in keynote roles.

“The faculty are outstanding, and their material is very prepared, high caliber, and unique to MIT. Nothing is rehashed. I attend courses deliberately seeking new approaches and business strategies—MIT has been extremely helpful in this regard.”

Daryoush Larizadeh, SM ’93, President and Chief Operating Officer, Leviton Manufacturing Co., Inc.

BY THE NUMBERS

15,000+ Participation in Executive Education open enrollment programs has increased at a historically rapid rate, from 5,000 to 15,000+

A YEAR MADE TO MATTER

//

13

IN TH E WO RLD, FO R TH E WORLD

Building Resilient Cities for the Future Bangkok, Thailand played host city to a major regional conference from MIT Sloan (made possible with the funding of Bangkok Bank under the leadership of Chartsiri Sophonpanich, SM ’83, SM ’84, President of Bangkok Bank) on the future of the “resilient city”: a construct adapted to the changing space and resource-scarce urban environments of the 21st century. Convened last December, this event brought MIT Sloan, MIT, and Thai leaders together to explore questions of the design, development, and impact of the global megacities that will house more than half of the world’s population within a few decades. As Roberto Rigobon, PhD ’97 (Society of Sloan Fellows Professor of Management; Professor, Applied Economics) explained, “The objective was to create a relationship between MIT and Thailand, where we can learn from each other.” Elaborated John Grant, SM ’79, Senior Lecturer in International Action Learning Programs, “Asia is in a prominent position here, in terms of the scale, growth, environmental exposure, and complexity of its urbanization trajectory.” In short, this inaugural conference opened the door for a future of fruitful urban co-invention.

14

//

MIT SLOAN SCHOOL OF MANAGEMENT

Launching a Data Analytics Certificate Program in Latin America This past May, in conjunction with Universidad de Chile, MIT Sloan launched a Data Analytics Certificate program. Marking the school’s first partnership and academic program forged with a public university in Latin America, the program is taught in Santiago with full participation from MIT faculty, and includes two weeks of immersive classes conducted on-site at MIT Sloan.

Faculty from Universidad de Chile and MIT focus their teaching on harnessing data analytics practices in a diversity of areas, such as health care, retail, public policy, mining, banking, and telecommunications. Designed to empower the leaders who are and will be steering the development of Latin American businesses and the regional knowledge economy, course modules span data science fundamentals, practices of big data mining and machine learning, and data-driven decision-making.

Faculty who have already taught at the Universidad de Chile include Faculty Director Roberto Rigobon, PhD ’97 (Society of Sloan Fellows Professor of Management; Professor of Applied Economics) and Robert M. Freund (Theresa Seley Professor in Management Science; Professor of Operations Research). Faculty who will teach during the two-week January program include Rigobon and Freund, as well as Emilio J. Castilla (NTU Professor of Management; Professor, Work and Organization Studies); Joseph Doyle (Erwin H. Schell Professor of Management; Professor, Applied Economics; and Faculty Director, MIT Sloan Initiative for Health Systems Innovation); David R. Keith (Assistant Professor of System Dynamics); Retsef Levi (J. Spencer Standish [1945] Professor of Management; Professor, Operations Management; and Co-Director of the MIT Leaders for Global Operations Program); Andrew W. Lo (Charles E. and Susan T. Harris Professor; Professor of Finance; and Director of the Laboratory for Financial Engineering); and Sarah Williams, MCP ’05 (Associate Professor of Technology and Urban Planning; Chair, Urban Science & Computer Science Program).

PRO G R A M COM P O N E N TS:

› Duration: 7 months, between May 2019 and November 2019 (Universidad de Chile, Santiago) and 2 weeks in January 2020 (MIT Sloan School of Management, Cambridge, Massachusetts) › MIT faculty visit Universidad de Chile to teach courses › Universidad de Chile students visit MIT for 2 weeks to take courses on-site

REAP-ing the Local Benefits of Innovation-Driven Entrepreneurship In a world where every region calls for more jobs and stronger economic prosperity, one thing is clear: Innovation-driven entrepreneurship is a key engine for growth. The MIT Regional Entrepreneurship Acceleration Program (REAP) model has been deployed in communities around the world to accelerate innovationdriven entrepreneurial (IDE) ecosystems. Since its inception in 2012, MIT REAP faculty and staff have coached more than 50 teams from regions across the globe through its action-based learning program for economic and social progress. Now, MIT REAP is helping to support innovation a bit closer to home: Kentucky is the first continental U.S. location selected for the program and joins its sixth cohort of teams.

Over the next two years, this MIT REAP team, whose members represent the key stakeholder groups of government, university, corporate, risk capital, and entrepreneurship, will work together to identify, deploy, and measure strategic interventions designed to

transform Kentucky into a thriving entrepreneurial economy.

Among the initiatives ready for consideration: business accelerators, diaspora networks, strong mentor mechanisms, competitions, commercialization strategies at state universities, and innovative capital approaches.

“We’re thrilled to have been selected,” says Luke Ramsay, an economic development extension specialist with the University of Kentucky’s Community and Economic Development Initiative of Kentucky (CEDIK). “The fact that we are the first region from the United States selected for this program is a great signal that Kentucky is serious about finding the best ways to support our local innovators. As the REAP effort has progressed, the network of stakeholders continues to grow. Kentucky innovators are ready to see our state at the top of the list of places to start, build, and scale their businesses.”

A YEAR MADE TO MATTER

//

15

16

//

MIT SLOAN SCHOOL OF MANAGEMENT

EPIC ENTERS O F INVENTION

Co-Inventing the Future At MIT Sloan, the involvement of alumni has always been crucial to our success. We need your voices, and we crave your committed expertise. For those who want to co-invent the future with us, there are several impactful ways of becoming involved with a variety of MIT Sloan advisory boards and initiatives that span the school’s epicenters of invention. Here are some highlights from our centers of learning and making:

H I G H L I G H TS FROM TH E M A RTI N TRUS T C E N TE R FO R M IT E N TR E PR E N E U R S H I P

While its startup spirit remains as strong as ever, the Martin Trust Center is no longer early stage. The center, now founded over 15 years ago, has reached a scale that carries with it the advantage of dramatically increased impact in the efforts to instill entrepreneurship and innovation habits of mind and hand in MIT’s entrepreneurs and intrapreneurs. In fact, this year’s annual report includes a “Trust Center Talent Tree” that reflects the scale and scope of talent that has passed through the center’s doors, and the myriad ways in which these individuals carry the torch of the school’s mission forth, linking alumni including Elliot Cohen, MBA ’13 (Chief Product Officer & Co-founder, PillPack) and Donna Levin, EMBA ’16 (Executive Director, Innovation & Entrepreneurship, Worcester Polytechnic Institute; Program Manager / Lecturer, Entrepreneurship; Lecturer, Technological Innovation, Entrepreneurship, and Strategic Management, MIT Sloan). To sum up, in the words of Managing Director Bill Aulet, SF ’94, “The world needs us—and more of us—now more than ever.”

“Simply put, the Martin Trust Center is designed to provide entrepreneurship skills for a brighter, more successful future. While, yes, it’s about skills, it’s also about asking surprisingly simple questions: Think about markets that are early today, what you think could be very big down the road, and somehow overlap with what you’re interested in doing personally. Think about what that will look like over the next 10, 20, 30 years…and how you can play in that space. Because that’s absolutely where tomorrow’s most amazing successes will spark.”

Frederic Kerrest, MBA ’09, Executive Vice Chairperson, Chief Operating Officer, and Co-Founder, Oktae of Computing

BY TH E N UM B E R S

800+ Visitors per day

58,000 Cups of coffee served annually

1,300+ Students enrolled in Trust Center core courses

A YEAR MADE TO MATTER

//

17

EPIC ENTERS O F INVENTION

H I G H L I G H TS FROM TH E M IT G O LU B C E N TE R FO R FI N A N C E A N D P O L I C Y (G C FP)

Founded five years ago and supported by generous gifts from Bennett (Ben) W. Golub, SB ’78, SM ’82, PhD ’84 (Chief Risk Officer and Co-Founder of BlackRock, Inc.), and a number of other Sloan alumni and friends, the Golub Center for Finance and Policy continues to serve as a catalyst for innovative, cross-disciplinary, and non-partisan research and educational initiatives that address the unique challenges facing governments in their roles as financial institutions and as regulators of the financial system.

In 2018, the center convened an important event that is likely to inform policy changes for decades to come: the 2008 Financial Crisis: A Ten-Year Review. In partnership with the NYU Stern School of Business and the Annual Review of Financial Economics, the two-day, invitation-only conference brought industry, public-sector, and academic leaders together to discuss new research on systemic risk, housing and mortgage markets, and regulation—and explore perspectives on critical topics, including bailouts and asset pricing.

Ben Golub and Dean David Schmittlein

Speakers included Timothy Geithner ( former Secretary of the United States Treasury), Ben Bernanke ( former Chairman of the United States Federal Reserve), Mervyn King (former Governor of the Bank of England), JeanClaude Trichet ( former President of the European Central Bank), as well as MIT Sloan’s own Robert C. Merton, PhD ’70 (School of Management Distinguished Professor of Finance; Professor of Finance), Andrew W. Lo (Charles E. and Susan T. Harris Professor; Professor of Finance; Director of the Laboratory for Financial Engineering), Deborah Lucas (Sloan Distinguished Professor of Finance; Director, MIT Golub Center for Finance and Policy), Antoinette Schoar (Stewart C. Myers-Horn Family Professor of Finance and Entrepreneurship), and Arvind Krishnamurthy, PhD ’98 (Osterweis Professor of Finance, Stanford Graduate School of Business). Said Merton and Lo of the historic event, “We aim to enhance our collective understanding of the causes of the crisis, its lasting impact, and how we can mitigate risks going forward.”

H I G H L I G H TS FROM TH E M IT S LOA N A LUM N I BOA R D

Now in its fifth year of operation, the MIT Sloan Alumni Board continues to foster deeper connections between alumni and the school through impactful projects that are pertinent to the broader MIT Sloan community. This past year, Alumni Board teams partnered with groups across the school to tackle projects in three main areas: the recruitment of underrepresented minorities to the school; the experience of alumni volunteers; and how we tell the story of our alumni across the globe. Among the many achievements of these groups was the successful hosting of the Management Leaders of Tomorrow (MLT) conference in June, the rollout of new volunteer training and recruiting materials, and the creation of the podcast Sloanies Talking with Sloanies.

To get involved with the MIT Sloan Alumni Board, please contact Lauren Wojtkun at laurenw@mit.edu.

18

//

MIT SLOAN SCHOOL OF MANAGEMENT

H I G H L I G H TS FROM TH E S US TA I N A B I L IT Y I N ITI ATI V E

In the 12 years since its founding, the Sustainability Initiative at MIT Sloan has supported the integration of sustainability into the core of the MIT Sloan experience, supported sustainability-oriented innovation projects with more than 120 companies worldwide, and designed and deployed a host of interactive tools, events, and experiences to engage public, private, and MIT stakeholders in steering climate action—thereby creating positive conditions for humans, economies, and the environment to thrive. In the past year, the Sustainability Initiative took a significant leap forward in driving climate action. With the generous support of Michael Sonnenfeldt, SB ’77, SM ’78, John Sterman, PhD ’82 (Jay W. Forrester Professor of Management; Professor, System Dynamics and Engineering Systems; Co-Director of the Sustainability Initiative; Director, MIT System Dynamics Group), and partners at Climate Interactive launched the latest version of the En-ROADS climate simulation model and brought this groundbreaking tool to new populations. Harnessing the best available science, En-ROADS gives stakeholders from policymakers and business leaders to citizens and students the opportunity to experiment—firsthand and in real time—with different policies and their impacts on global energy production, pricing, greenhouse gas emissions, and the global climate system. In the past year, En-ROADS has been experienced by 39 U.S. senators, 60 staffers of U.S. senators and representatives, five governors, and numerous C-suite leaders in Fortune 500 companies and non-profits alike. In the year ahead, the team is seeking to ensure that the simulator— in the words of Sonnenfeldt— becomes “the globally recognized reference tool for policymakers worldwide.”

J o hn

St e r

ma

n

In the past year, En-ROADS has been experienced by 39 U.S. senators, 60 staffers of U.S. senators and representatives, five governors, and numerous C-suite leaders in Fortune 500 companies and non-profits alike.

A YEAR MADE TO MATTER

//

19

REU NIO N

Sloanies Come Home Reunion 2019 welcomed back 1,597 alumni and friends to Cambridge from all corners of the globe—and raised $1,534,000 for the MIT Sloan Annual Fund through the Reunion Class Gift, a 15% increase in Annual Fund support from Reunion 2018.

Weekend highlights included: › A hugely diverse and stimulating series of Ideas Made to Matter alumni TIMtalks—hosted by the MIT Sloan Alumni Board and moderated by board member Ulli Domany-Funtan, SF ’14—covered broad-ranging ideas such as democratizing our financial system at Robinhood, linking people who are currently linked out of the knowledge economy to good jobs through LaborX, how important MIT people are to the world and economic development, and much more. › A women’s panel (the MIT Sloan Student/Alumnae Forum) featured Kerry James, SB ’95, MBA ’01; Karen Mazer, SM ’89; Emily Feldman, MBA ’14; and Aparna Prabhakar, EMBA ’18.

The panel was characterized by spirited, lively discussion around the challenges and learnings of alumnae working across diverse fields, and covered themes ranging from the trials of navigating the consulting world to determining the most rewarding paths to career success. › Faculty sessions included appearances from standouts such as Roberto Rigobon, PhD ’97 (Society of Sloan Fellows Professor of Management; Professor of Applied Economics), Antoinette Schoar (Stewart C. Myers-Horn Family Professor of Finance and Entrepreneurship), Jason Jay, PhD ’10 (Senior Lecturer, Sustainability; Director, Sustainability Initiative at MIT Sloan), Simon Johnson, PhD ’89 (Ronald A. Kurtz [1954] Professor of Entrepreneurship; Professor, Global Economics and Management), and Renée Richardson Gosline (Senior Lecturer and Research Scientist, Marketing).

Learn more at mitsloanreunion.com

20

//

MIT SLOAN SCHOOL OF MANAGEMENT

› Alumni continued to hone their professional development skills in a series of offerings from the MIT Sloan Career Development Office.

Bryn Panee Burkhart led the popular “Navigating Your Career at Any Age and Stage” and “Intelligent Networking” workshops, as well as 1:1 career coaching throughout the weekend. › Attendees enjoyed a profoundly thought-provoking “fireside chat” with John C Head III Dean David Schmittlein, speaking with Frederic Kerrest, MBA ’09 (Executive Vice Chairperson, Chief Operating Officer, and Co-Founder, Okta), and Brad Peterson, SM ’89 (Executive Vice President and Chief Technology and Chief Information Officer, Nasdaq). Topic matter included such diverse subjects as their own lives and career experience, the Initiative on the Digital Economy and the future of work, how entrepreneurship and innovation are reflected in MIT Sloan’s current programs, and much more. › The “Beaver Tank” 2019 round-up and rapid-fire vote up of alumni entrepreneurial enterprises, hosted by the redoubtable Bill Aulet, SF ’94, (Professor of the Practice, Technological Innovation, Entrepreneurship, and Strategic Management; and Managing Director, Martin Trust Center for MIT Entrepreneurship) provided a broad overview of the innovative and diverse business models advanced in the marketplace by today’s Sloanies. This showcase featured a wide array of purpose-driven businesses, from an online platform for buying insurance called CoverWallet to VALUTUS—an enterprise exploring sustainability work using a licensing model. › A one-of-a-kind live recording of the popular Sloanies Talking with Sloanies podcast featured Patrick Zeitouni, MBA ’09 and Christopher Reichert, MOT ’04. Over the course of their conversation, the two discussed the influence MIT Sloan had on how Patrick approaches his consulting work at the famed company Blue Origin.

Reunion 2019

1,597

$1.5M+

15%

10

Alumni and friends attended

Raised for Reunion Class Gift

Reunion Class Gift increase over 2018

Class Gift class records set

A YEAR MADE TO MATTER

//

21

FINAN C E

A Year by the Books In the spirit of transparency, we’re pleased to provide MIT Sloan’s consolidated balance sheet for fiscal year 2019. In keeping with the school’s mission (and our recent growth), we’ve continued to emphasize our most important priorities: building scale; recruiting and supporting our peerless faculty; funding future-looking, practical initiatives and research; and creating new programs and supporting existing ones to help our graduates shape the future.

O P E R AT I N G R E S U LT S ($M)

E N D O WM E N T ($M)

F Y18

F Y19

137.6

154.3

Net Investment Income

29.4

31.7

Expendable Gifts

19.4

21.6

E N D I N G P R I N C I PA L

Sponsored and Other Revenue

31.0

35.1

Principal Appreciation

T O TA L R E V E N U E

217.3

242.7

T O TA L O P E R AT I N G E X P E N S E S Including Salary and Other Expenses

216.3

237.2

1.0

5.5

SOURCES OF REVENUE

F Y18

F Y19

300.7

32 5. 7

25.0

31.7

325.7

357.4

703.6

748.7

1, 0 2 9. 3

1,106.1

B E G I N N I N G P R I N C I PA L

Net Tuition and Non-Degree Fees

O P E R AT I N G S U R P L U S ( D E F I C I T )

Endowed Gifts and Other Transfers

E N D I N G M A R K E T VA L U E

TH E M IT C A M PA I G N FO R A B E T TE R WO R L D

With the invaluable leadership of the MIT Sloan Executive Board, our fundraising for the Institute-wide Campaign for a Better World continues to provide significant support to this landmark effort. The ongoing commitment of the MIT community again demonstrates our shared passion for driving true change—change that makes an impact, worldwide, on the most important issues of our time.

As of 6/30/2018

$286M Amount MIT Sloan achieved in new gifts/new pledges commitments from

13,062

vid

Sc

hmit tlein

Unique donors during the Campaign

David Schmittlein, John C Head III Dean, MIT Sloan School of Management

//

$336M Amount MIT Sloan achieved in new gifts/new pledges commitments from

13,994 Unique donors during the Campaign

“The state of the school remains strong. Cross-campus collaboration isn’t just an aspiration here, it’s the core of how we work to tackle the world’s greatest challenges. Part of it is our spirit of cooperative, insatiable curiosity; part of it is the unmistakable power of proximity. Both are made possible by your ongoing enthusiasm and support for our mission.”

Da

22

As of 6/30/2019

MIT SLOAN SCHOOL OF MANAGEMENT

FY19 MIT Sloan Annual Fund Utilization

TH E M IT S LOA N A N N UA L FU N D

37%

5%

STUDENT SUPPORT Annual Fund: $2,115,535

PROGR A MS/INITIATIVES Annual Fund: $297,803

17% 41%

ALUMNI Annual Fund: $956,107

FAC U LT Y SUPPORT/RESEARCH Annual Fund: $2,393,866

The MIT Sloan Annual Fund remains one of the single most important sources of funding that the school relies on. Annual Fund dollars are essential for the success of core MIT Sloan operations and ensure that project and initiative teams can remain relevant, agile, and responsive to the challenges of a fastmoving world. In short, qualified students and alumni require support for their growth as leaders in the classroom and beyond, and researchers need resources to react and change course in response to world events, new technologies, and unexpected developments. The Annual Fund allows MIT Sloan to pursue its mission of building a better world in the most impactful way possible: by supporting the people doing so.

$5.84M D E A N’S C I RC L E U PDATE

Raised for the MIT Sloan Annual Fund

This past year, the school benefitted from the generosity of 750 Dean’s Circle donors who collectively raised $4.8 million for the MIT Sloan Annual Fund. Dean’s Circle gifts represented 83% of total MIT Sloan Annual Fund dollars raised during fiscal year 2019.

$4.8M

Dean’s Circle donors have committed themselves to a role of true leadership in advancing the school’s mission and leaders doing world-changing work. The MIT Sloan Annual Fund remains one of the school’s top priorities to support core operations, ensuring that researchers, students, and faculty have access to resources that enable them to productively respond to world events, new technologies, and developments in leading-edge fields of management theory and practice.

Contributed by Dean’s Circle Donors

83% Of MIT Sloan Annual Fund Dollars come from Dean’s Circle Donors

750 Dean’s Circle Donors

24-HOUR GIVING CHALLENGE

As MIT’s unofficial quant holiday, Pi Day (the annual 24-Hour Giving Challenge, marked yearly on March 14) seeks to instill enthusiasm, school spirit, and philanthropy among alumni, parents, students, and friends of the MIT community. While 2018’s Pi Day yielded record-breaking results (including 248 first-time donors), this year’s 24-Hour Giving Challenge had its own impressive collection of highlights. › A 48% increase in dollars from last year, raising a total of $523,126 for the MIT Sloan Annual Fund by 1,147 donors. › Over $173,000 contributed by 65 Dean’s Circle donors, an 8% increase from the year prior. › An average gift size of $300—representing a 6% increase from last year.

CELEBRATE WITH THE MIT SLOAN COMMUNITY ON MARCH 12, 2020

A YEAR MADE TO MATTER

//

23

Office of External Relations 77 Massachusetts Avenue, E60-200 Cambridge, MA 02139 mitsloan.mit.edu/alumni

STAY CONNECTED @mitsloanalumni