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Stanford Graduate School of Business Business School Fund FY12 Report

UNRESTRICTED GIFTS PROVIDE INNOVATION CAPITAL

Annual and reunion giving is the lifeblood of the Stanford Graduate School of Business (GSB). With 90% of endowed gifts restricted to specific purposes, the Business School Fund provides seed capital for new ideas and nearly half of the school’s annual expendable gift revenue. The Business School Fund enables the school to take advantage of opportunities as they arise and ensure the GSB continues to innovate. Due to the generosity of 6,978 donors, $13.7 million was raised for the Business School Fund in fiscal year 2012. The support of alumni and friends has enabled the GSB to make significant progress toward key initiatives that will ensure the school continues to innovate and remains a pioneer in the field of management education and knowledge creation. In the fiscal year ending August 31, 2012, unrestricted gifts supported: • • • • Student programs Faculty research Alumni initiatives Instructional technology to facilitate effective learning and teaching

In all. and commencement Career Management Center The Career Management Center (CMC) is another critical piece of the GSB student experience supported by annual funds.166 to cover tuition and living expenses. the Business School Fund helps fill the financial gap when the school needs resources beyond dedicated fellowship funds. Student Life The Business School Fund supports student life activities at the GSB. the GSB awarded $10. such as the annual Latino Leadership Banquet and Black Business Students Association gala • Academic advising and tutoring • Pre-enrollment programs.Impact on Students UNRESTRICTED SUPPORT HELPS PROVIDE FINANCIAL AID TO ATTRACT THE BEST STUDENTS AND EXPOSE THEM TO WORLD-CLASS CURRICULAR EXPERIENCES Fellowships To attract the best students to the GSB. For the MBA Class of 2011: • 85% of students seeking employment had a job offer by graduation • 95% had an offer within 3 months of graduation • 16% chose to start companies upon graduation The CMC has responded to the generational shift in student career interests by pursuing a personalized strategy of helping each of our students define a unique career and life vision. networking events like “Fewer than 300.890.” which focus on fast-growing companies with fewer than 300 employees. all PhD students received an average award of $81. and extensive oneon-one advising. The CMC partners with students and recruiters to develop an employment strategy that minimizes resources and maximizes success.575. orientation. During 2011-12. people. which provide unparalleled leadership and professional growth opportunities for our students as well as a critical link between students’ academic studies and important issues and trends in business practice. such as the Principal Investment Conference • Nearly 70 clubs ranging from career interest groups and geographic groups to recreational groups • Major events. The CMC has built a multidimensional career and life vision program that includes workshops.189 in MBA fellowships in 2011-12 to 450 recipients. which met approximately 25% to 30% of financial need. One of the unique elements of the GSB is the diversity of career paths pursued by our alumni. 309 employers hired either an MBA graduate for a position or a rising second-year MBA student for a summer internship. $214 Funds an MBA student for one day Speakers at the 2012 Black Business Students Association gala 2 . In addition. and spring on-campus development. organizations. we sponsor a range of activities beyond on-campus recruiting including a dedicated outreach effort to less traditional employers guided by student preferences. On the connections front. In the 2011-12 school year. and then connecting them with resources. the average MBA fellowship award was $23. Student life activities and student services include: • Student-run conferences. facilitated small groups. and opportunities that are aligned with their vision.

5 with law.000-square-foot space on the third floor of Zambrano of the Knight Management Center was reconfigured to become the Stanford Venture Studio with the support of unrestricted funds. 18 with earth sciences. Qatar. the Middle East. share entrepreneurship concepts. Global Study Trips expose students to how business is done in other countries. Student Trips The Business School Fund helps offset costs associated with the planning and execution of student-led trips. was designed to encourage student teams to brainstorm business ideas.Impact on Students (continued) Joint Degrees Unrestricted gifts help fuel academic programs. Studio Venture Lab In the past year a 3. During the 2011-12 academic year. alumni giving helps cover the rest. The GSB’s goal is to increase the joint degrees earned at the GSB from 1 in 6 to 1 in 4 by 2020. MBA ’86 BU SINE SS SC HOOL FU ND FY1 2 RE PORT | STAN FORD GRAD UAT E SC H OOL O F BUSINE SS 3 . faculty. and United Arab Emirates in the Middle East. 46 joint degrees were awarded in conjunction with the following Stanford schools: 22 with education. The studio has already attracted students from across Stanford University. and 1 with humanities & sciences (public policy). including the school’s four joint degree programs. and pursue start-up opportunities. 111 students and 7 faculty advisors went on 6 Social Innovation Study Trips to Africa. The space.” –Jeff Waters. 459 students and 16 faculty advisors went on 16 Global Study Trips to 18 countries. Asia. Combining studies strengthens students’ academic experience and better prepares them to pursue their professional interests. and staff on the Global Study Trip to United Arab Emirates and Qatar “I make unrestricted gifts to the GSB each year because I believe in the mission of the school. which satisfy the Global Experience Requirement. and Nigeria and Kenya in Africa. which is open 24 hours a day. I believe the leadership and faculty of the GSB take the investment of capital we make in the school and produce outstanding future leaders of organizations. including to Saudi Arabia. which produce a great return on capital for our society. Meanwhile. During the past year. while Social Innovation Study Trips (formerly Service Learning Trips) enable students to see how their management education can contribute to effective and sustainable solutions to social and environmental issues. MBA students. 50/50 The GSB’s funding model: tuition covers roughly half the cost of an MBA education. which reinforces the GSB’s efforts to strengthen academic collaboration with Stanford’s six other schools. and North America. which enable MBA students to bridge academic disciplines and obtain expertise in multiple areas. including teams that are continuing to work on their projects initially conceived in the multidisciplinary Design for Extreme Affordability course.

” Research Highlights The GSB’s faculty members are not only effective teachers who bring lessons to life in the classroom. Strebulaev. People sometimes actually favor hierarchical relationships over equal ones. which can range from missed bond payments to outright bankruptcy filings. making them feel more successful. WHICH SHAPE THE STUDENT EXPERIENCE AND GENERATE NEW IDEAS. including many fallen angels that defaulted between 1997 and 2010. will. the Jonathan B. for making accounting compelling to all. Their conclusion was that default causes a much bigger decline in a company’s total market value than is generally assumed. Distinguished Teaching Awards Each year students in each of the GSB’s three academic programs honor standout professors with the Distinguished Teaching Awards. Strebulaev analyzed 175 corporations. high-profile companies such as Google moving away from a clearly defined pecking order. the Richard A. is to help organizations be more mindful about how they structure themselves. For “fallen angels” — companies that started out with investment-grade ratings — default will destroy about 30% of the total asset value. The larger goal. “When you’re creating an organization it is important to think about what structure will serve your goals best. associate professor of finance.” Associate Professor Dirk Jenter receives MBA Distinguished Teaching Award 90% Amount of endowed gifts that are restricted. required course that builds a framework for first-year students. For the second straight year Sloan Master’s Program students honored Charles Lee.” Tiedens said. Lovelace Professor of Organizational Behavior. Lovelace Professor of Organizational Behavior and Senior Associate Dean for Academic Affairs. but also stellar researchers who contribute new ideas to the field of management. Ilya A.7%. on average. according to a recent study by Lara Tiedens. and a coresearcher in a paper published in the January 2012 volume of the Journal of Personality and Social Psychology. he and his coauthors combined historical data on corporate defaults with a new analytical model to tease out investor reactions to a default both before and after it happens. Stepp Professor of Economics. “But there are things that are good about hierarchy. found that the actual costs of corporate defaults and bankruptcy are higher than assumed. In 2011-12 MBA students chose Associate Professor Dirk Jenter for his compelling teaching of Managerial Finance. But that estimate was based only on defaults at 30 companies that had originally been financed with high-yield junk bonds. and Senior Associate Dean for Academic Affairs 4 . They estimate that defaults. and for creating a “friendly and warm environment. With successful. making unrestricted gifts the school’s lifeblood Lara Tiedens. reduce a corporation’s total market value by 21. mentoring and advising on a one-on-one basis. the Jonathan B. for the individual attention he gives to his students. In a new paper. a tough.Impact on Faculty UNRESTRICTED FUNDS SUPPORT FACULTY TEACHING AND RESEARCH. the prevailing wisdom has become that hierarchy is bad and equality is good. the best estimate had been that corporate defaults cost companies about 20% of their value. and things that are good about equality. Before. the Joseph McDonald Professor of Accounting. says Tiedens. Doctoral students honored Jeremy Bulow. That’s because hierarchical relationships are easier for people to grasp and manage.

Peer Mentoring During spring reunions the Center for Leadership Development and Research launched a peer mentoring program for alumni from the classes of 2002 and 2007. with alumni gathered at 264 regional events in 65 cities around the globe. The initiative serves as a wonderful opportunity to receive advice from peers who may be facing similar leadership and career challenges and to stay connected to classmates. and Chanticleer.978 alumni making gifts. Alumni reconnect at the Knight Management Center during reunion weekend 40. two classes set attendance records with 99 alumni from the MBA Class of 1961 and 203 from the MBA Class of 1986. where a group of volunteers developed strategic options for sustainable growth and a process management framework for implementation. to help students in whichever way they can. The intimate GSB community also gives you unparalleled access to peers and alumni. the Robert L. MBA Class of 2013 BU SINE SS SC HOOL FU ND FY1 2 RE PORT | STAN FORD GRAD UAT E SC H OOL O F BUSINE SS 5 . which brings together alumni volunteers to make a significant impact on the community by applying their management skills to challenges facing social benefit organizations. in which a team developed a marketing plan aligned with the organization’s strategic planning goals.1% Of MBA alumni made gifts in fiscal year 2012 “The relatively small size of the GSB class creates a unique atmosphere where you feel inspired by and truly accountable to your classmates. while spring reunions saw 937 alumni and family return to celebrate. The Business School Fund helps underwrite alumni events worldwide.” –Meg He. Spring reunion featured the formal dedication ceremony on Town Square in front of the Bass Center. Alumni Consulting Team Unrestricted funds help support the work of the Stanford Alumni Consulting Team (ACT). and Joel Peterson. the Thomas D. Unrestricted funds help offset the costs of the first reunions held in the Knight Management Center. providing lifelong learning experiences and networking opportunities. the groups started meeting virtually during sessions facilitated by center staff via the Blue Jeans network. receptions in the Seawell Family Board Room and General Atlantic Great Room. Both fall and spring reunions showcased the school’s new facilities with guided tours.Impact on Alumni UNRESTRICTED GIFTS PROVIDE FUNDING TO KEEP GSB ALUMNI CONNECTED AND ENGAGED THROUGHOUT THEIR LIVES. In turn. which help set the stage for a lifetime of alumni giving. Last year more than 1 in 5 living GSB alumni attended a GSB event. Reunion programming included a session in which alumni discussed the biggest stumbling blocks and career challenges they have faced since graduating from the GSB.930 alumni and their families coming to campus. an online tool that connects different communication platforms. GSB alumni and friends supported the school in record numbers with more than 6. ACT contributed approximately $3 million in consulting services in fiscal year 2012 to 34 nonprofits including the Bay Area Ridge Trail. intimate class panels and other gatherings in classrooms. Fall 2011 reunion weekend set an overall attendance record with 1. Following that. who have all been so willing and generous with their time. Dee II Professor of Organizational Behavior. Joss Consulting Professor of Management. and festive meals in outdoor plazas where classmates reconnected. In addition. and inaugural speaker events in Cemex Auditorium featuring Jeffrey Pfeffer. Dean Garth Saloner’s welcome.

the basement of the GSB’s Serra East building is being converted into a recording studio for online education programs. the school has several innovations in technology underway. It is anticipated that Executive Education programs as well as Stanford Ignite (formerly the Program in Innovation and Entrepreneurship) will be delivered through these new platforms. At the most immersive end of the spectrum is GSB Boardroom. The studio will have a static set as well as flexible sets with a greenscreen. a Professor’s Studio is taking shape at the Knight Center. at a March reception at the Stanford Center at Peking University As the means to accomplish its forward-looking initiatives. investing in the faculty members who are compelling teachers and path-breaking researchers. remote group. Two editing bays are also under construction. Back at the Knight Management Center. “A gift to Stanford is a highly leveraged one in that it makes it possible for the next generation of leaders in those same — and other — organizations to receive the training and education they will require to take care of the problems of the next generation. as well as the first class at the first experimental hub of the Stanford Institute for Innovation in Developing Economies in Nairobi. an HD video conferencing system that will connect on-campus groups of up to 25 with similarly sized audiences at the recently opened Stanford Center at Peking University (SCPKU) in Beijing. With these two types of platforms.Impact on Technology ANNUAL GIVING HELPS THE SCHOOL USE TECHNOLOGY TO INCREASE COLLABORATION. along with a screencasting room to capture program tutorials that will enable users to have a self-serve learning experience. which will use a mixture of online and inperson instruction.” –Jo Ivester. with the first remote audiences also planned to be at SCPKU. the GSB is the first tenant of the Beijing center to use such cuttingedge instructional technology. which is helping the GSB prepare students to lead lives of meaning and impact. In another development. and multiple cameras. MBA ’81 6 . an enhanced classroom for distance learning is also in the works with audiovisual equipment that will enable faculty to teach bigger groups of up to 100 (50 inperson and 50 offsite). The school is investing in these new forms of instructional technology in order to serve a broader constituency while at the same time optimizing faculty time. Unrestricted gifts enable the GSB to undertake innovations that enable the school to evolve and reinvent itself in order to remain a leader in the field of management education. and keeping alumni connected with each other and the school. studio lighting. Glenn Carroll.978 donors Your Vital Role Thank you for your investment in the Business School Fund. While the GSB Boardroom and the enhanced classroom are designed to have two groups in different locations learning together. which will be delivered through CourseWork and other video-based instruction platforms.7 million Total of unrestricted gifts from 6. $13. AND REACH. Lane Professor of Organizations. PRODUCTIVITY. the Laurence W. which will enable faculty members to teach to a single. Kenya.