Business School Dean McArthur to Retire

After 15 years as Dean of the Harvard Business School, John H. McArthur announced yesterday that he will step down form his post as soon as a successor is chosen.

McArthur and President Neil L. Rudenstine made the announcement to Business School faculty at a regularly scheduled meeting yesterday afternoon. The meeting had been innocuously billed as an opportunity to "re-introduce" President Neil L. Rudenstine's to the school's faculty.

Instead, McArthur, with Rudenstine by his side, dropped a bombshell. The pair announced a few minutes into the meeting that the dean was leaving. The faculty then gave McArthur a 10-minute standing ovation, according to those present.

Business School students found out as the news spread quickly across this school's Allston campus yesterday afternoon. McArthur said students would be told of the decision in a letter he and Rudenstine wrote to students yesterday.

In an interview yesterday in the plush sitting room of the Dean's House, McArthur, 60, said he will leave "when the new dean is ready to start." McArthur, who lives in Wayland, is the first dean in the school's 87-year-old history not to live in the mansion.

"I've had 15 years to do anything," McArthur said. "Now what I ought to do is get out of the way."

McArthur said he hopes that a successor will be in place by the beginning of the University's next academic year.

Rudenstine added that September was the goal, though he said "[I] don't want a rigid dead-line."

The search committee has not yet been formed, but will be formed within a few days and will begin meeting within a few weeks, according to Rudenstine.

Rudenstine said a "advisory committee" will be set up to take suggestions for the search from the Board of the HBS Alumni Association, the Board of Directors of the Associates of the Business School and the school's visiting committee.

The president added that he as already written to "every person in the school...inviting them to write a personal, confidential letter on the direction for the school and any candidates they might want to suggest."

Rudenstine said that there will be no bias towards internal candidates when choosing the next dean,

"We'll look both out and in we always do" Rudenstine said. "I do not [have a bias]...I think we will take advice and look and see where it comes out."

McArthur said he will have no role is choosing his successor.

In a letter dated yesterday Rudenstine wrotethat he would be losing a "friend, counselor andcolleague." And he continued to laud McArthur atthe joint press appearance yesterday.

"Personally, there is just a tremendous amountof wisdom sitting on my right, just a whole lot ofexperience...you don't run the Harvard BusinessSchool for 15 years without being absolutelyextraordinary," Rudenstine said. "Its a moment topay tribute to the kind of career that does nothappen very often in any walk of life andcertainly not among academic deans."

A Decision Long in the Making

McArthur said that no recent event led to hisdecision to step down.

"We talked about this the first day Neil was inCambridge before he started as President and heasked me if I would stay on until he got started,which I was pleased to do," McArthur said. "Ithink we began to talk about this date...justabout Christmas a year ago in '93."

The dean said the timing of his announcementcentered around the completion of some reviews andhis "guesstimate" at the time was that they wouldbe completed around this past Christmas.

McArthur's decision to leave also comes justmonths after the completion of the planning stageof the curriculum overhaul at the Business School,called "Leadership and Learning."

But McArthur also wrote in a letter datedyesterday that the death of his mentor, George P.Baker, '25 and the birth of his granddaughtercontributed to his decision.

According to the dean, the timing of hisresignation was decided last June. Apparently,last summer, McArthur had planned to haveRudenstine attend the March meeting of theBusiness School's visiting committee, thisSaturday, and the school's Board of Associates,later this month, in anticipation of making theannouncement around this time.

In Rudenstine's letter, however, the presidenttraced the talk of ending McArthur's tenure backtwo years--as opposed the four years McArthurreferred to in the interview.

In the same letter, McArthur wrote that he hadsaid from the beginning of his tenure that hewould leave when he finished his work.

"My work is done," he wrote.

In preparation for his departure, McArthur saidhe had written thousands of letters to all partsof the community ranging from staff to cabdrivers.

McArthur said he would continue in hispositions as Chair of the Mass General/Brigham andWomen's merger as well as Chair of the Brigham.

He refused to give any hint of his futureplans, saying only that he was going to take sixmonths off before making any decisions. He didsay, however, that he had ruled out joining theMafia.

"I can tell you specially, I don't have any[plans]," McArthur said. "I have lots to do forthe moment with these hospitals in Boston."

McArthur, who has said in the past few years helooked forward to going back to teaching finance,said he would not resume teaching at the BusinessSchool.

"I don't think people should stay oninstitutions after they have had a job of thiskind. I think it makes it too difficult for peopleto change things," he said.

Rudenstine, however, termed McArthur'sdeparture a "one-year sabbatical" and said that hewould try to get McArthur to return to theBusiness School "if he can be coaxed."

McArthur said that he would be quite happy ifthe Business School were to continue to becompetitive in the coming years.

"It think we're in fantastic position,"McArthur said, adding, however, that he thoughtthat all of the top business schools were atapproximately the same level.

Specifically, McArthur pointed out that becauseall the people who had developed "Leadership andLearning" are staying, he does not see any dangerof the new programs running into trouble.

In his letter, though, he did write that thereare major challenges facing the school includingrising costs and threats to academic freedom fromthings like political correctness.

McArthur said that the most important change inthe school since he has been there has been theincreasing diversity--with increasing numbers ofinternational students, women and minorities.

Rudenstine took issue with McArthur'scharacterization of merely keeping the schoolgoing, calling his work building the school"extraordinary."

McArthur also said he had no worries that hisdeparture would effect the school's fund-raisingefforts.

"If I had to bet, I'd bet a bunch of my friendssend in an extra check this year," he said.

On a related note, Rudenstine said that donorsto the University's $2.1 billion capital campaignhad reacted "very favorably" to his three-monthmedical leave of absence.

The Succession

Speculation has already begun as to who will beMcArthur's successor.

A half dozen professors contacted yesterdaymentioned Robinson Professor of BusinessAdministration James I. Cash as one of the leadingcontenders for the position.

Cash is currently in charge of the MBA programand was also the leader of the Leadership andLearning project.

Also mentioned repeatedly as a possiblecandidate was Figgie Professor of BusinessAdministration Kim B. Clarke'74

In a letter dated yesterday Rudenstine wrotethat he would be losing a "friend, counselor andcolleague." And he continued to laud McArthur atthe joint press appearance yesterday.

"Personally, there is just a tremendous amountof wisdom sitting on my right, just a whole lot ofexperience...you don't run the Harvard BusinessSchool for 15 years without being absolutelyextraordinary," Rudenstine said. "Its a moment topay tribute to the kind of career that does nothappen very often in any walk of life andcertainly not among academic deans."

A Decision Long in the Making

McArthur said that no recent event led to hisdecision to step down.

"We talked about this the first day Neil was inCambridge before he started as President and heasked me if I would stay on until he got started,which I was pleased to do," McArthur said. "Ithink we began to talk about this date...justabout Christmas a year ago in '93."

The dean said the timing of his announcementcentered around the completion of some reviews andhis "guesstimate" at the time was that they wouldbe completed around this past Christmas.

McArthur's decision to leave also comes justmonths after the completion of the planning stageof the curriculum overhaul at the Business School,called "Leadership and Learning."

But McArthur also wrote in a letter datedyesterday that the death of his mentor, George P.Baker, '25 and the birth of his granddaughtercontributed to his decision.

According to the dean, the timing of hisresignation was decided last June. Apparently,last summer, McArthur had planned to haveRudenstine attend the March meeting of theBusiness School's visiting committee, thisSaturday, and the school's Board of Associates,later this month, in anticipation of making theannouncement around this time.

In Rudenstine's letter, however, the presidenttraced the talk of ending McArthur's tenure backtwo years--as opposed the four years McArthurreferred to in the interview.

In the same letter, McArthur wrote that he hadsaid from the beginning of his tenure that hewould leave when he finished his work.

"My work is done," he wrote.

In preparation for his departure, McArthur saidhe had written thousands of letters to all partsof the community ranging from staff to cabdrivers.

McArthur said he would continue in hispositions as Chair of the Mass General/Brigham andWomen's merger as well as Chair of the Brigham.

He refused to give any hint of his futureplans, saying only that he was going to take sixmonths off before making any decisions. He didsay, however, that he had ruled out joining theMafia.

"I can tell you specially, I don't have any[plans]," McArthur said. "I have lots to do forthe moment with these hospitals in Boston."

McArthur, who has said in the past few years helooked forward to going back to teaching finance,said he would not resume teaching at the BusinessSchool.

"I don't think people should stay oninstitutions after they have had a job of thiskind. I think it makes it too difficult for peopleto change things," he said.

Rudenstine, however, termed McArthur'sdeparture a "one-year sabbatical" and said that hewould try to get McArthur to return to theBusiness School "if he can be coaxed."

McArthur said that he would be quite happy ifthe Business School were to continue to becompetitive in the coming years.

"It think we're in fantastic position,"McArthur said, adding, however, that he thoughtthat all of the top business schools were atapproximately the same level.

Specifically, McArthur pointed out that becauseall the people who had developed "Leadership andLearning" are staying, he does not see any dangerof the new programs running into trouble.

In his letter, though, he did write that thereare major challenges facing the school includingrising costs and threats to academic freedom fromthings like political correctness.

McArthur said that the most important change inthe school since he has been there has been theincreasing diversity--with increasing numbers ofinternational students, women and minorities.

Rudenstine took issue with McArthur'scharacterization of merely keeping the schoolgoing, calling his work building the school"extraordinary."

McArthur also said he had no worries that hisdeparture would effect the school's fund-raisingefforts.

"If I had to bet, I'd bet a bunch of my friendssend in an extra check this year," he said.

On a related note, Rudenstine said that donorsto the University's $2.1 billion capital campaignhad reacted "very favorably" to his three-monthmedical leave of absence.

The Succession

Speculation has already begun as to who will beMcArthur's successor.

A half dozen professors contacted yesterdaymentioned Robinson Professor of BusinessAdministration James I. Cash as one of the leadingcontenders for the position.

Cash is currently in charge of the MBA programand was also the leader of the Leadership andLearning project.

Also mentioned repeatedly as a possiblecandidate was Figgie Professor of BusinessAdministration Kim B. Clarke'74