HIGH-LEVEL IMPACT

Beginning this fi scal year, alumni and

friends who make an annual commit-

ment at levels of $5,000+, $10,000+,

$25,000+, and $100,000+ to the HBS

Fund for Leadership and Innovation

(formerly known as the Dean’s Fund) will

be recognized as HBS Fund Investors.

Members of this leadership group will

enjoy special benefi ts connecting them

more closely with the work of the School.

The establishment of this new society

refl ects the critical role that annual gifts,

particularly at higher levels, play in driving

innovation and new initiatives, and in

advancing the School’s highest priorities.

Similar to a venture capital fund, the

HBS Fund provides seed funding for the

School to act quickly but thoughtfully

to capitalize on new concepts, such as

FIELD, the yearlong experiential course

for all fi rst-year MBAs; the Harvard Inno-

vation Lab; and HBX, an online learning

platform now in development.

In addition to advancing educational

innovation, gifts to the HBS Fund fuel

a more fl exible economic model for the

School and have an immediate impact

on enduring priorities such as student

fi nancial aid, pathbreaking research,

and global understanding.

To learn more about supporting the

School as an HBS Fund Investor, includ-

ing the different levels of membership

and benefi ts, please contact Stephanie

Noone, director, Annual and Reunion Giv-

ing (snoone@hbs.edu, 617-495-6526).

HBS’S UNIQUE ECONOMIC MODEL

Harvard Business School is renowned for educating leaders who make a diff erence in the world. Less well known is the economic model that enables HBS to do this—a model that is unique in higher education. HBS is a living example of what it teaches: For a business’s long-term success, it must have multiple revenue sources, invest in innovation, avoid deferred maintenance, limit debt, and run a surplus.

The School has fi ve principal revenue streams: MBA tuition, Executive Education tuition, Harvard Business Publishing (HBP), the endowment, and current-use funds. Three of these have limited growth capacity. On the MBA side, today’s economy does not allow for signifi cant tuition increases. In addition, since 2008, fi nancial aid need has risen, minimizing the impact of tuition increases. Executive Education, a thriving program, is constrained by space. HBP, meanwhile, like the rest of the publishing industry, faces fi erce competition and great uncertainty as it adapts to the digital world.

At a time when the School must increase its investment in innovation, revenue from philanthropy (20 percent endowed funds payout, 4 percent current-use gifts) off ers the best growth potential. While the endowment largely comprises restricted funds that likely will generate only modest returns in the next decade, gifts to the HBS Fund for Leadership and Innovation (formerly known as the Dean’s Fund) can be used in full immediately to adapt to emerging trends. These critical unrestricted dollars have a strong impact on HBS’s ability to innovate and advance key priorities, and we antici-pate that they will play an even greater role in the School’s eff orts to foster leaders and ideas with the power to change business and society.

In the coming years, HBS will continue to be a well-managed, fi scally responsible steward of its resources. We are grateful for the many alumni and friends who make annual contributions of all sizes.

Rick Melnick (MBA 1992)Rick Melnick (MBA 1992)Chief Financial Offi cer

REMARKABLE SUPPORT

Fiscal year 2013 proved to be another success-

ful year of fundraising thanks to the generosity

of more than 12,000 alumni and friends — along

with the help of over 1,300 dedicated volunteers.

Here are a few of the highlights from the year,

which ended on June 30, 2013.

• Dean’s Fund (now called the HBS Fund):

$23.8 million (up 18% from FY2012)

• Total Gifts & Pledges: $203 million (up 58%)

• 1,047 first-time donors

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18 HBS ALUMNI BULLETIN September 2013

INVESTING

IN HBS

HBS FUNDFOR LEADERSHIP & INNOVATION

Investors Society

ALL GIFTS MAKE ALL GIFTS MAKE

A DIFFERENCEA DIFFERENCE

AUTHENTIC LEADERSHIPMBA students enrolled in the elective course Authentic Leader-ship Development (ALD) are encouraged to check their public personae —the polished résumés or stylized Facebook pages they’ve crafted that tell a version of their life story —at the door. Inside the classroom, the focus is on understanding one’s true self with the goal of creating authentic leaders.

“This is really a human development course. We believe, to the extent that you are more authentic and more clear about what you’re about, you’ll be more likely to step up when there’s an opportunity to lead, be more eff ective when you do so, and live a more meaningful life — a happy, fl ourishing life,” says Scott Snook (MBA 1987, PhDOB 1996), the MBA Class of 1958 Senior Lecturer of Business Administration, one of the professors who teach the course. Part of the MBA Elective Curriculum (EC) since 2005, ALD was introduced by Professor of Management Practice Bill George (MBA 1966) and is based on his 2007 book True North: Discover Your Authentic Leadership. George is now faculty chair of the Executive Education version of the course, which is being off ered three times a year.

One of several innovative “platform” courses designed to enrich the EC, ALD is structured to help students fully explore their own leadership style and determine their inner compass. They are invited to draw up a contract establishing norms and confi den-tiality, allowing for openness about vulnerabilities as they share their life stories and confront long-held notions about success and failure. Throughout the semester, students read chapters and com-plete exercises from True North, consider cases illustrating the core values of a particular businessperson’s life, discuss the importance of real and consistent leadership that empowers others, and submit written refl ections. Fundamental to the course is participation in six-member leadership development groups that are designed to bring students of diverse backgrounds together for intensive, personal discussions that off er them a transformational experience.

“ALD helped me grow both roots and wings,” says Neda Navab (MBA 2013), partner marketing manager of the cloud computing company Box. “In answering questions about my motivators, in taking a stand for my values, I grew roots that fi rmly planted me in a worldview and a leadership view. But I also grew wings — the confi dence to go out into the world and act with purpose.”

THE SECRET SAUCE

Scott D. Hawkins (MBA 1982)

When asked to lead his class’s 30th Reunion Gift participa-

tion efforts, Atlanta-based real estate developer Scott Hawkins

was up for the challenge. Partnering with other class leaders,

Hawkins says they “took the assignment seriously, crafted a

plan, and spent the necessary time to implement it.”

That planning paid off: The Class of 1982 raised $24.4

million, exceeding their goal and establishing a new 30th

Reunion gift record. With Hawkins as participation chair,

the class achieved an impressive number of gifts and

reached 53 percent participation— a class best.

A notable aspect of their efforts, says Hawkins, who heads

The Hawkins Companies, was a reliance on email instead of

phone calls or letters. “This might have been the secret sauce

of our success. Let’s just call it electronic shoe leather.”

“ALD helped me grow both roots and wings.

I grew roots that fi rmly planted me in a

worldview and a leadership view, but I also

grew wings—the confi dence to go out into

the world and act with purpose.”

— Neda Navab (MBA 2013)

GIFTS UNDER $1,000

=$1.8 M IN FY 2013

Email communication was key

to achieving a class best

of 53 percent participation.

Authentic Leadership Development exemplifi es innovations in the Elective Curriculum that will be supported by the Connell family gift (see page 9).

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G 9,000Susan and Scott Hawkins

September 2013 HBS ALUMNI BULLETIN 19

give.hbs.edu

CREATE VALUE:

INVEST IN HBS

Scott Snook