bg

i n n o v a t i o n i s o u r t r a d i t i o n

E n t r e p r e n e u r i a l L e a d e r s h i p

E t h i c s & I n t e g r i t y

C o l l a b o r a t i o n & C o m m i t m e n t

I n n o v a t i v e T e a c h i n g

I n t e g r a t e d C u r r i c u l u m

H y b r i d L e a r n i n g

R e l e v a n t R e s e a r c h

C o r p o r a t e C o n n e c t i o n s

D i v e r s i t y & C o m m u n i t y

W o m e n ’ s L e a d e r s h i p

G l o b a l M a n a g e m e n t

F a m i l y E n t e r p r i s i n g

I n t e r n a t i o n a l P a r t n e r s h i p s

E x e c u t i v e E d u c a t i o n

A l u m n i N e t w o r k

P r e s i d e n t ’ s R e p o r t

2 0 0 5

“The word which best captures the spirit and achievement of the past year

is ‘impact’—an outgrowth of our Strategic Plan for the College.”

“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

As I complete my fourth year as President of Babson, I am pleased to

report the College has achieved many new “firsts” during the past 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.

• Our first Fulbright Scholar.

• The largest gift from an individual or a family ever made to the

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

apparent to anyone who spends time on campus. The student experience

is changing, with a greater balance between course work and out-of-

classroom activities. Our students, always entrepreneurial, are taking the

lead. They are starting more clubs and organizations, taking part in

more sports, and devoting more time to social projects for the commu-

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

Babson. Our faculty members have long been informal advisers to

students. Starting last year with the Class of 2008, every student has an

adviser team which, of course, includes a faculty member. Many faculty

members also assist student organizations that work on projects with a

societal impact, such as helping with the construction of homes for poor

families through our chapter of Habitat for Humanity and Babson’s

project for teaching entrepreneurship to teenagers in South Africa.

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

in governance. They also are guest speakers in the classroom, bringing

to our students their perspectives on the latest developments in the

business world.

In fact, the word which best captures the spirit and achievement of

the past year is “impact”—an outgrowth of our Strategic Plan for the

College. In my first President’s Report two years ago, I described this

Strategic Plan. 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.

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

investments you can make. And, you will find examples of alumni

whose investments continue to yield benefits year after year.

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

should be given priority, and their ideas on how to create a stronger

culture of philanthropy throughout the Babson community. We

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

faculty to students—not only while these alumni were at the College,

but even after they graduated and sought advice about their careers. I

also heard from a number of alumni about how financial aid made a

difference, enabling them to attend a school that would have been out

of their reach without this support.

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.

We also need to ensure that we offer activities and events that provide

real value for our alumni.

The schools with which we now compete have been accelerating

their fund-raising in recent years—and spending it on faculty salaries,

endowed chairs, and research support, as well as financial aid and merit

scholarships for the best students from a variety of backgrounds. Creating

a stronger culture of philanthropy across the Babson community and

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

announced the gift that he and his wife, Jan, are making to Babson:

“Today I believe that Babson is the best investment I have ever made, an

investment that is already delivering more than I ever dreamed, and yet,

increasingly, one with truly extraordinary future potential.”

We are at a very exciting time in the history of the College. As you

read through this report and learn more about the investments that have

been made in Babson and the impact they are having, I know you will

share our enthusiasm. With your help, these investments and their

impact will grow dramatically in the years ahead.

“Last year, I focused on action steps that were being developed to implementthe plan. This year, I am emphasizing impact—how our Strategic Plan ismaking a difference.” — Brian M. Barefoot ’66, P’01

1

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

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 entrepre-

neurial 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 insti-

tutes (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-

ships with partner schools and alumni around

the world and link their global regions back to

Babson. The centers provide programs, faculty,

and other resources. The linking of the insti-

tutes and the academic centers has resulted in

the development of deeper, multilevel relation-

ships with some of the best schools in the

world. Here are a few examples of the multiple

points of touch Babson has with three of its

strategic partners:

ESADE in Barcelona:• Executive education programs.

• Babson faculty members teach modules in

their graduate program.

• Undergraduate exchange program.

• Exploration of a joint MS in Finance.

TEC de Monterrey in Mexico:• Two-week intensive course for engineering

students from TEC to study entrepreneur-

ship at Babson College.

• Development of an MS in Entrepreneurship

with TEC’s engineering students.

• Faculty exchanges between TEC and Babson.

• Undergraduate exchange program.

Tsinghua in China:• Developing and delivering joint

executive education programs.

• Delivering an entrepreneurship module to

their EMBA Program.

• Developing with other Chinese universities

the Symposium for Entrepreneurship

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 entre-

preneurial leaders across all borders.

Michael FettersProvost

fetters@babson.edu

Taking Entrepreneurship to the World—Bringing the World to Babson

2

Dean of Faculty Fritz Fleischmann and

Vice Provost for Entrepreneurship Stephen

Spinelli Jr. M’92 have been leading key

initiatives to support Babson’s vision of taking

entrepreneurship to the world. For Dean

Fleischmann that has meant retaining and

attracting a world-class faculty through these

and other actions:

• Launched an ongoing series of teaching

seminars created by and for faculty on

a variety of topics in teaching, including

preparing more faculty to teach in an

on-line context.

• Introduced four new teaching awards,

supported by the program deans, to

recognize great teaching at Babson.

• Streamlined internal research funding

process to enable faculty to plan and

execute their research work more effectively.

In addition to faculty development pro-

grams, the College will be dedicating signifi-

cant resources to increase salaries and lower

teaching loads, bringing faculty compensation

closer to our competitor benchmarks. Dean

Fleischmann points out, “Because Babson has

risen to a higher tier in the academic world,

we’re now competing with schools that have

much greater resources.” The profile of an ideal

faculty candidate for Babson is somewhat

unique in the academic world, states Dean

Fleischmann. “This is a place that demands

engagement in a common cause to make a

difference. It is not the place for someone

who is only looking to advance his or her

individual career goals. As a result, we have

an extraordinarily committed and dedicated

faculty.” It will be imperative to develop the

resources to attract those extraordinary individ-

uals to Babson in the years ahead.

For Vice Provost Spinelli, building capability

is about developing new “constellations of

faculty” which embody Babson’s expanded view

of entrepreneurship. In addition to Babson’s

expertise in new venture creation, entrepreneur-

ial finance, and sustainable growth, constella-

tions are being formed around a number of key

focus areas. These constellations are listed below

together with their recent key initiatives.

• Corporate Entrepreneurship—launched the

Innovation and Corporate Entrepreneurship

Research Center in partnership with Babson

Executive Education.

• Technology—launched the Symposium for

Entrepreneurship Engineering Educators

in partnership with the F.W. Olin School

of Engineering, with a grant from the

National Science Foundation.

• Family Enterprising—launched the Successful

Transgenerational Entrepreneurship

Practices (STEP) project, a major research

initiative that explores the entrepreneurial

process within families’ businesses.

• Public Policy—produced the 2005 Global

Entrepreneurship Monitor, the leading

globally focused entrepreneurship

research report.

• Women’s Leadership—produced significant

research on women’s entrepreneurial

activity and hosted the 7th annual Women’s

Leadership conference.

Social entrepreneurship concepts are woven

throughout all of these key areas. For example,

Babson is working to improve opportunities

and curriculum for underserved populations in

its programs for women and its partnership

with Historically Black Colleges and

Universities.

Because of our expanded view of entrepre-

neurship, Babson was able to attract world-

class academic Dr. Candida Brush to join the

College as chair of the Entrepreneurship divi-

sion. She will lead the planning for our

pioneering new PhD in Entrepreneurship.

This appointment is another powerful example

of how the convergence of Babson’s global

and entrepreneurial strategies is working to

expand our capabilities.

Management Faculty Positions

Babson Salary Median

Benchmark Median

Babson as % of Benchmark

Assistant Professor $95,200 $115,000 82.8%

Associate Professor $102,900 $117,000 87.9%

Professor $125,600 $157,200 79.9%

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 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

Stephen Spinelli Jr.Vice Provost for Entrepreneurship (left)

spinelli@babson.edu

Fritz FleischmannDean of Faculty (right)

fleischmann@babson.edu

3

“It’s not just that we are connected; it’s that we understand andmake the most of our connections.” — Dean Patti Greene

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.

INITIATIVES AND RESULTS

Patricia G. GreeneDean, Undergraduate School

President’s Endowed Chair in Entrepreneurship

greene@babson.edu

Undergraduate Education

4

Dean Patti Greene traveled extensively this

past year, making presentations at a variety

of venues across the country, including the

Association to Advance Collegiate Schools of

Business (AACSB) International 2005 Deans

Conference, the Academy of Management,

and General Electric’s Women’s Network. The

more people she talked with, the more con-

vinced she became that the talent and culture

of Babson really does create a uniquely power-

ful higher education environment.

“We’re much more ‘fleet of foot’ than other

schools,” says Greene. “Babson is more focused,

more willing and able to take risks, and much

better at collaborating to get results. It’s not

just that we are connected; it’s that we under-

stand and make the most of our connections.”

Dean Greene attributes this advantage to

the way Babson integrates its major strategic

themes (entrepreneurship and global perspec-

tive) and key values (creativity, ethics, and

diversity) into everything the College does,

generating extraordinary impact through an

innovative curriculum, world-class faculty, and

an increasingly competitive student body.

AdmissionsUnder the leadership of Dean of Under-

graduate Admission Alan Kines, the College

has initiated a more strategic approach to

building a class of students, essentially hand-

picking each individual. Last year, Babson

received its largest number of applications,

and the new students are “higher, faster,

brighter than ever,” according to Dean Greene.

The Class of 2009 saw an increase in the

percentage of underrepresented students and

is the most geographically diverse class ever.

In addition, Babson’s first group of POSSE

students (inner-city high school students with

leadership potential who are likely to be

overlooked for college admission) successfully

completed their first year. The second group

of POSSE students arrived this fall.

AcademicsPerhaps the year’s greatest testament to

Babson’s progressive and rigorous undergrad-

uate education was Julian Simcock, Babson’s

first Fulbright Scholar. Julian’s achievement

exemplifies the impact the undergraduate

school’s curriculum can have on our students.

New innovative curricular opportunities

launched last year included: a new experience

for students in Russian culture and business

at St. Petersburg State University; students

collaborating with faculty to develop new

cases in ethics; and Babson students partner-

ing with engineering students from Olin to

win the annual business plan competition on

Founder’s Day.

A hallmark of the Babson education is the

close relationships forged between faculty and

students. In FY05, a new advising system was

put into place that connects each incoming

student with a faculty adviser. To further guide

students, 21 academic concentrations were

introduced to link course work with career

development plans.

Cocurricular ActivitiesBabson supports a tremendous array of

cocurricular activities for students, including

themed housing, women’s leadership opportu-

nities, more than 60 student groups and

organizations, and varsity sports and intramu-

ral activities.

A highlight from last year’s Martin Luther

King Jr. Legacy Day was the address of keynote

speaker Dr. Muhammad Yunus, founder

and managing director of Grameen Bank,

Bangladesh. Dr. Yunus is a role model for

addressing poverty and development.

Career DevelopmentAt Babson, career development is integrated

into each student’s activities from day one,

through internships, coaching and career

development workshops, and opportunities to

meet employers through recruitment inter-

views, classroom experiences, and connections

with alumni. Last year, the Center for Career

Development launched partnerships with the

Coaching for Leadership and Teamwork

Program, Global Program Services, and

Alumni & Development to leverage the

resources of the entire community in position-

ing students for great careers.

“My merchandising internship at TJX gave me broad

exposure to the retail industry and provided valu-

able 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 candi-

date for other buying programs.

“At the end of the summer, I was offered a full-

time position as an allocation analyst in their

Corporate Merchandise Training Program.”

Accelerating Impact through Integration and AgilityElizabeth Campbell ’05, Allocation Analyst

TJX Corporate Merchandising Training Program

Internship Yields Career Opportunity

5

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. forHispanics according to Hispanic Trends Magazine.

• #1 MBA program for women in The Princeton Reviewin 2004 and 2005.

ENROLLMENTSFY04 FY05

Two-year MBA 163 162One-year MBA 52 54Evening MBA 162 157Fast Track 45(Jan.) 39 (Jan.)

GLOBAL OPPORTUNITIES• New global management concentration enrolled more

than 50 MBAs.

• Announced new joint degree program in managementwith a concentration in technological entrepreneurship with Tec de Monterrey in Mexico.

• Globe Trotters, a new student-generated initiative inwhich Babson international MBA students share information on the cultural and business environmentsof their countries.

CAREER DEVELOPMENTThe MBA Center for Career Development launched aninnovative approach to building and maintaining cus-tomer-driven partnerships in key vertical industries (e.g.consulting, high-tech, bio-pharma, consumer products, andfinancial 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 wasup more than 14%.

• The number of students employed three months aftergraduation was up more than 13%.

• Average starting salary for graduating studentsincreased 8.37%, to $80,766.

INITIATIVES AND RESULTS

Mark RiceMurata Dean, F.W. Olin Graduate School of Business

Jeffry A. Timmons Professor of Entrepreneurial Studies

mrice@babson.edu

“We are committed to expanding our reach through technology—withoutsacrificing the close relationships between faculty and students that arethe hallmark of a Babson education.” — Dean Mark Rice, F.W. Olin Graduate School of Business

Graduate Education

6

“In a rapidly changing MBA marketplace, Babson is playing offense—adopting a radical new businessmodel—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

individuals, and on companies that reap

the benefit of Babson-educated employees.

The broader and deeper these relationships,

the more opportunities they create for

Babson’s students.

“The biggest challenge and the biggest oppor-

tunity for the graduate school this year has

been responding to the dramatic shift in the

MBA marketplace for working professionals,”

says Mark Rice, Murata Dean of the F.W. Olin

Graduate School of Business. With more than

30 percent market share, Babson continues to

dominate the Greater Boston part-time MBA

marketplace, but the market has declined

significantly in recent years, down

more than 18 percent since 2002. The primary

reasons for this decline include shifting

demographics, less favorable corporate tuition

reimbursement policies, and the proliferation

of online programs offered by both for-profit

and nonprofit institutions.

In response to these challenges, the Grad

School teamed up with College Marketing to

analyze the market and identify a “sweet spot”

where Babson could differentiate itself and

capitalize on these shifting dynamics. The

decision was to “expand the pie” geographical-

ly, enabling working professionals from

outside the Boston area to attend the #1

MBA school for entrepreneurship on a part-

time basis through “blended” learning.

“We are committed to expanding our reach

through technology—without sacrificing the

close relationships between faculty and stu-

dents that are a hallmark of a Babson high

quality education,” Dean Rice said. The

solution was a radical new business model:

The Babson Fast Track MBA, a blended

approach that combines traditional classroom

instruction with distance learning, making it

flexible and market-friendly while preserving

the excellence of Babson’s integrated curricu-

lum. And it’s shorter than a traditional part-

time MBA program, with participants

graduating in about two years.

Seizing the opportunity, Babson has made

a major, multiyear investment of $3 million

for program development and marketing.

The goal is to go from one section of 40-50

students/year in 2005 to four sections in 2006

and five sections in 2007. The graduate school

is also recruiting corporate partners to scale

the Fast Track enrollment strategy and specifi-

cally address corporations’ evolving training

and development needs. The implementation

of the Fast Track will have institutional

impacts far beyond the program itself:

• A flexible curriculum based on learning

modules that will provide a portfolio of

options for the graduate school to bring to

the market. These programs can be deliv-

ered online, in the classroom, or in a

blended format.

• Stronger, more valuable corporate relation-

ships that can be leveraged across all Babson

programs. This is an extension of the

External Relations strategy Babson launched

in 2003, in which companies benefit from a

“one-stop” shopping approach for their MA

and MBA programs; executive education;

interns and employment needs. This key

account approach will create more career

placement opportunities for Babson MBAs

and create another channel for connecting to

prospective students.

Two other programs at the graduate school

really hit their stride this year—the Alumni

Mentoring Program (AMP) and the Career

Affinity Groups (CAGs). These programs are

aimed at accelerating career and professional

development for students, building corporate

relationships, and strengthening the MBA

alumni network. Every relationship between

an alum and a student has the potential for

multiple impacts—on students’ careers, on

alumni opportunities to make a difference for

Alumni Mentoring Program“When I first got my match, I was surprised. Michael,

my alumni mentor, was the ‘polar opposite’ of what

I wanted to do professionally. He was in finance,

and I wanted to pursue a career in sales. However,

over the course of our five meetings, I discovered

that we had a lot of interests in common, and the

relationship really began to develop. Michael was

instrumental in introducing me to someone at his

firm which ultimately led to an internship there. This

relationship influenced me and my career develop-

ment in ways I could never have imagined.”

—Timothy Beagen, M’06, Two-Year MBA Program

“Tim really gets all the credit for this relationship.

I let him drive the frequency of contact, and he was

very proactive about contacting me and staying in

touch on a regular basis. He understood the impor-

tance of time in relationship building and acted

very professionally throughout the year.

“From my perspective, I gained a lot from this

experience. I had the opportunity to give back to

Babson, reconnect with old classmates, and stay in

touch with the school and MBA Program. And my

company got a highly qualified intern.”

—Michael Lin, M’00, Senior Director of Finance and

Strategic Planning, Fast Search & Transfer

7

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: BattelleBiomedical Marketing Assoc.EMCEstee LauderFidelityIngersoll Rand MetLifeMillennium PharmaceuticalsSt. GobainTeradyne

INITIATIVES AND RESULTS

Elaine EisenmanDean, Babson Executive Education

eeisenman@babson.edu

MetLıfe˙ Babson listened to MetLife’s needs to create truly custom programs to support MetLife’s strategy.

“It’s Babson Executive Education’s ability to truly partner with clients that differentiatesus so clearly from our competitors.” — Dean Elaine Eisenman, Babson Executive Education

Executive Education

MetLife had a vision: A leadership training program that blended general business instruction with company-specific case studies. The company wanted professors with demonstratedindustry expertise; and, importantly, they wanted those professors to be willing to share teaching responsibilities with their own corporate executives. MetLife wanted the program toinclude real projects focused on current business problems or opportunities that could be immediately implemented by participants upon completion of the program. In BabsonExecutive Education, MetLife found a long-term partner in leadership development. Babson’s professors offered expertise, flexibility, and a willingness to create a robust program cus-tomized 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 workmade our business better and produced higher results.” — Deb Capolarello, Senior Vice President and Chief Talent Officer, MetLife

SUCCESS STORY:

8

During the past year, Babson Executive

Education (BEE) solidified its position among

the top schools in both the BusinessWeek and

Financial Times rankings. To round out this

performance, the Financial Times ranked BEE

#4 in the world for “value for money” in

2005. This extraordinary ranking, based

entirely on client input, is testament to BEE’s

ability to deliver superior value at a competi-

tive price—an ideal platform for continued

growth and success.

This platform and its potential were key

factors in attracting Elaine Eisenman to

become the dean of Babson Executive

Education. No stranger to high growth

ventures or the appeal of exceptional value,

Dean Eisenman is an experienced business

leader and general manager, HR executive,

private and public board member, and organi-

zational consultant. “It’s Babson Executive

Education’s ability to truly partner with clients

that differentiates us so clearly from our

competitors,” she states. BEE accomplishes

this by mobilizing institutional resources to

offer integrated, multidimensional solutions

to clients. Following are a few great examples

of this strategy in action.

Life Sciences PracticeBabson is emerging as a world leader in

providing integrated solutions to companies

in the life sciences industry. In the past year,

BEE delivered highly rated open enrollment

programs for bio-business professionals. We

also designed and delivered customized

programs in the areas of marketing, strategy,

leadership, and corporate entrepreneurship

to professionals from Novartis, Serono,

Millennium, Haemonetics, Cubist

Pharmaceuticals, and member companies of

the Biomedical Marketing Association. The

value doesn’t stop there. Babson Executive

Education launched the award-winning Life

Sciences Insight, an industry-specific e-maga-

zine comprised of articles by Babson faculty

and industry leaders. It also has leveraged

connections within the Babson community,

including a new Life Sciences affinity group

for alumni and the MBA life sciences club.

Industry leaders such as Louis Lavigne Jr. ’69,

former executive vice president and CFO of

Genentech; Daniel Vasella, chairman and

CEO of Novartis AG; Mara Aspinall, presi-

dent of Genzyme Genetics; John Abele,

founder and chairman of Boston Scientific;

James Mullen, CEO of Biogen Idec; and Bill

Hawkins, president of Medtronic; have

graciously supported Babson’s foray into life

sciences, either through adjunct faculty

appointments, guest lectures, or interviews.

Global PartnershipsAs part of Babson’s strategic effort to expand

our brand through global partnerships,

Babson Executive Education has collaborated

with leading international business schools:

HEC (France), ESADE (Spain), and AGSM

(Australia). Last year, for the fifth straight

year, Babson Executive Education ran pro-

grams for students in HEC’s executive MBA

program. For the past two years, we have

provided programs on corporate entrepre-

neurship for students in ESADE’s executive

MBA program in Madrid. And in a new

global partnership, Babson Executive

Education and Australian Graduate School

of Management (AGSM) co-delivered a

consortium program on corporate entrepre-

neurship in Singapore. Through such alliances,

Babson Executive Education is not only

bringing the Babson brand to the world, but

also expanding our knowledge base and

experience in global management, providing

even more value to corporate clients.

New Executive Program for WomenRecently, Babson Executive Education and

Babson’s Center for Women’s Leadership

joined forces to co-develop and deliver a new

open enrollment program for professional

women. The result of this partnership was a

highly successful inaugural program that

further diversified Babson Executive

Education’s client base, and satisfied an unmet

need in the marketplace: empowering women

to successfully navigate the critical points of

leadership transition.

Babson Executive Education continues to

develop a broad range of programs to meet

our customers’ needs—from open enrollment

to applied research centers to custom. Going

forward, we will continue to explore innova-

tive ways to provide exceptional value to our

clients, including more integrated solutions

and increased attention to post-program

follow-up and advising. With momentum in

the rankings and a talented new dean at the

helm, Babson Executive Education is poised

for continued success and greater growth.

Sıemens 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 managementdevelopment 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

Babson’s global perspective, integrated curriculum, and history of innovation made it an obvious choice. SUCCESS STORY:˙

Exceptional Value for Money

9

Financial HighlightsFor the year ending June 30, 2005, the College achieved anoverall increase in net assets of more than $8.3 million.

Statements of Financial Position: 2-Year Comparative Summary

Statements of Activities: 2-Year Comparative Summary

A s o f J u n e 3 0 2 0 0 5 2 0 0 4

AssetsCash and cash equivalents $20 ,340 ,441 $ 16 ,232 ,476Pledges, accounts and loans receivable, net 28 ,626 , 155 19 ,908 ,809Investments 179 , 152 ,232 167 ,784 ,355Land, buildings, and equipment 143 ,858 ,332 148 ,801 ,7 15Bond funds on deposit with trustee 2 ,070 ,540 4 ,409 ,085Other assets 3 ,074 ,744 3 ,591 ,222

Total Assets $377 , 122 ,444 $360 ,727 ,662

LiabilitiesAccounts payable and accrued expenses $13 ,046 ,787 $ 1 1 , 1 58 ,067Bonds payable 1 13 ,0 14 ,335 1 14 ,902 ,578Other liabilities 19 ,902 ,062 1 1 ,881 ,243

Total L i ab i l i t i e s $ 145 ,963 , 184 $ 137 ,941 ,888

Net Assets 231 , 1 59 ,260 222 ,785 ,774

Total L i ab i l i t i e s and Net Assets $377 , 122 ,444 $360 ,727 ,662

F o r t h e Y e a r s E n d i n g J u n e 3 0 2 0 0 5 2 0 0 4

Operating ActivitiesOperating Revenues and Support

Tuition, fees, room and board, and other educational programs $87 ,200 ,377 $83 ,744 ,891Noneducation and auxiliary programs 19 ,0 17 ,694 17 , 162 ,093Contributions and grants used in operations 8 ,540 ,961 7 , 1 18 ,255Endowment spending and Investment income 7 ,9 18 ,793 7 ,597 ,323

Total Operating Revenues and Support 122 ,677 ,825 1 15 ,622 ,562

Operating Expenses 126 ,622 ,7 16 1 18 ,594 ,442

Change in Net Assets from Oper at ing Act i v i t i e s ( 3 ,944 ,891 ) (2 ,971 ,880)

Nonoperating ActivitiesEndowment investment return net of spending used to support operations 9 ,33 1 ,22 1 14 ,076 ,579Other Nonoperating Activities 2 ,987 , 156 (899 ,236)

Change in net assets from nonoperating activities 12 ,3 18 ,377 13 , 177 ,343

Total Change in Net Assets $8 ,373 ,486 10 ,205 ,463

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 eachyear presented, the College has received from PwC an unqualified opinion on its financial statements

For the year ending June 30, 2005, the

College achieved an overall increase in net

assets of more than $8.3 million. This com-

pares to a total increase of $10.2 million

the prior fiscal year. Improvements in the

executive education programs, increases in

contributions, and investment return on

endowment assets contributed significantly

to these results.

The College’s Executive Education pro-

gram, rated in the top 10 worldwide, saw

an increase in revenues of 19 percent. This

represents the second straight year the College

has experienced a double-digit percentage

increase in this line of business. Babson’s strong

market position has enabled us to take part in

corporations’ return to investing in executive

training. Undergraduate and graduate pro-

grams continue to be the core of the College’s

activities; however, their revenue growth has

been moderated by student capacity in the

full-time programs and by the changes in the

MBA market for working professionals.

Executive Education has much clearer revenue

growth potential in the near term.

In fiscal year 2005, the College reorganized

its Alumni Relations and Development Office

in preparation to kick off a capital campaign.

A lead gift in this first phase of the campaign

led to a dramatic increase in contribution

revenues, recognizing almost $19 million in

new gifts. This compares to $7.4 million

recognized in fiscal year 2004. Just as impor-

tantly, the number of donors to Babson in

2004-05 was greater than 2003-04. The

overall goal for the campaign—to be set in the

fall of 2006—is expected to be greater than

$200 million.

Endowment return was solid with a total

investment return of 10 percent, following

the previous year’s return of 14 percent. These

returns are consistent with those of similar

size endowments. The College evaluates its

investment asset allocation on an ongoing

basis in an effort to maximize the return on

these assets while managing investment risk

to ensure stability within the endowment.

Looking forward to fiscal year 2006, the

College is investing in a new residence hall

for undergraduate students to provide high

quality housing and increase the potential for

additional enrollments. This project is being

funded by the issuance of tax-exempt bonds;

the residence hall is expected to open for the

fall of 2006.

Financial Summary

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

private-sector financial management experience,

with an expertise in college and university finances.

He comes to Babson from Standard and Poor’s,

where he was managing director of the Public

Finance Department, chaired the rating committees

for several New England states, and worked closely

with dozens of colleges and universities. He has a

BA degree from Amherst College, a MEd from the

University of Maine/Orono, and an MBA degree

from Boston College.

Tuition, Fees, Roomand

Board68%

Other Educational 3%

Auxiliary/Noneducation 16%

Cont

ributi

on

s and Grants 7%

Endo

wm

ent S

uppo

rt6%

Instruction 25%Plan

t and

Facil

ities

26%

Institutional Support14%

Auxiliary Activities 11%

Student Services 9%

Acad

emic

Supp

ort 1

5%

Sources of Operating Revenue and Support: Fiscal Year 2005Uses of Funds: Fiscal Year 2005

11

Governance

This past year has been one of accomplish-

ment and progress for Babson on virtually

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 out-

comes 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.

William F. Markey Jr. M’64

Chairman of the Board of Trustees

Investing in Babson’s Future

Members of the Board of Trustees as of May 2005

Katherine L. Babson Jr., Esq. M’77, H’99

Nixon Peabody LLP

Mr. Brian M. Barefoot ’66, P’01Babson College

Mr. Marc H. Bell ’89Marc Bell Capital Partners LLC

Mr. William G. Burrill P’04 ’04 ’06W.G.B. Construction Co. Inc.

Dr. James I. Cash Jr. H’03The Concours Group

Ms. Karen K. Chandor M’74Stockbridge Advisors LLC

Mr. Stephen D. Cutler M’61Essex Investment Management Co. LLC

Mr. Everett R. Dowling M’86Dowling Company Inc.

Mr. Edward M. Fitzgerald ’77, M’78ARIAD Pharmaceuticals Inc.

Mr. Barry H. Goldman ’81

Ms. Gloria M. Gutierrez ‘87The Gutierrez Company

Mr. Muhammad H. Habib ’81Habib Bank AG Zurich

Ms. N. Lyle Howland ’79Howland Enterprises Inc.

Mr. Estefano E. Isaias Sr. ’68, P’00 ’02TC Television

Mr. Francis P. Jenkins Jr. ’65Royster-Clark Inc.

Mr. Eric G. Johnson ’72, P’08Baldwin Richardson Foods Company

Ms. Kathryn D. Karlic, CFA ’76G.E. Asset Management

Mr. Steven C. Kletjian ’71UNICCO Service Company

Mr. Harold G. Kotler ’65Gannett Welsh & Kotler Inc.

Mr. John B. Landry III ’69Adesso Systems

Mr. Andronico Luksic ’76, H’04, P’04 ’06Banco de Chile

Ms. Virginia Strauss MacDowell P’00 ’03

Mr. William F. Markey Jr. M’64The Wilmark Group

Ms. Ellyn A. McColgan H’05Fidelity Brokerage Company

Mr. Richard G. McDermott Jr. ’65US Trust Company NA

Dr. Richard K. Miller P’02Franklin W. Olin College of Engineering

Ms. Rena P. MirkinWellesley High School

Mr. Jeremiah J. Noonan ’81SpencerStuart

Mr. Joseph G. Parham Jr. ’72, M’75Acuity Brands Inc.

Mr. Richard A. Renwick ’79PRW Associates Inc.

Daniel V. Riley M’84Achieve Global

Mr. Thomas N. Riley ’78, M’82Atlantic Trust Pell Rudman

Mr. Robert M. Rosenberg P’94, H’97

Mr. Gobind Sahney ’83Sahney and Company

Mr. Thomas T. StallkampHonsel International Technologies

Mr. James W. Taylor ’86SmithBarney

Mr. William J. Teuber M’76EMC Corporation

Ms. Delia H. Thompson M’91, P’04Colgate-Palmolive Company

Mr. Aaron M. Walton ’83Radiate Entertainment Group

Mr. Lawrence WeberW2 Group Inc.

Mr. Ronald G. Weiner ’66Perelson Weiner LLP

Mr. Robert E. Weissman ’64, H’94, P’87 ’90

Mr. Joseph L. Winn M’74American Tower Corporation

Mr. Anthony C. Woodruff ’65Moors & Mendon Capital LLC

Members of the Board of Overseers as of May 2005

Charles S. Adams, Esq. ’62Weston, Patrick, Willard, Redding, P.A.

Mr. Richard L. BabsonBabson-United Inc.

Mr. Frank S. Benson III ’74Casto

Mr. Bernard G. Berkman ’52, P’79Bernard G. Berkman Associates Inc.

Ms. Kay Decker Bernon ’74Berkshire Hills Music Academy

Mr. William D. Beyer M’90, P’08Deloitte Consulting LLP

Mr. Peter M. Black H’02

Mr. Kevin Bryant ’82IC Investment

Mr. Octavio A. Caraballo ’65, P’91Estancias y Cabana Las Lilas

Mr. K. Paul Chase ’49, P’84

Mr. Gustavo A. Cisneros ’68Highgate Properties Inc.

Mr. James E. CofieldCofield Properties Inc.

Mr. Fred M. Condon ’69

Mr. Richard F. Connolly Jr. M’64UBS Financial Services

Mr. Russell V. Corsini Jr. M’67, P’03Deloitte & Touche LLP

Mr. William H. Cruickshank Jr. ’49, H’99

Ms. Bronwen Cunningham M’84CNY International

Mr. Paul R. Del RossiNorth Fork Partners

Mr. Mark T. Donohue ’88Expansion Capital Partners LLC

Ms. Martha Sloan Felch M’80Sovereign Bank

Mr. Paul Fireman H’94, P’00Reebok International LTD

Mr. Paul S. Gass ’59The Help and Profit Company Inc.

Mr. Leeds Hackett ’65

Mr. James C. Hays P’04Hays Companies

Mr. James H. Herbert II ’66First Republic Bank

Mr. James H. Hudgins ’74Superius Securities Group

Mr. Roland M. Jeannet M’75Jeannet Associates

Mr. Robert B. Kervick ’73Komtek Inc.

Ms. Michele Kessler

Mr. Howard M. Lorber P’01

Mrs. Paula Crane Lunder P’86 ’90

Mr. Peter E. Madden ’64, P’04

Mr. Robert E. Madden H’97, P’93

Mr. James B. Malloy ’51, P’85

Mr. Mario O. Mariasch M‘75FS Ventures

Mr. Ronald P. Masnicki P’97 ’00

Mr. Peter E. McNally ‘80

Mr. John J. McQuillan P’78 ’79 ’81

Mr. Lawrence W. Milas ’58, P’90F.W. Olin Foundation

Mr. Robert L. Miller ’69, P’02Main Street Management Services Inc.

Mr. Luis A. Noboa III M’94Pacific Fruit Inc.

Mr. Jay L. Owen ’65Harris Bank/Lake Forest

Mr. Kevin C. PhelanMeredith & Grew Inc.

Mrs. Elizabeth P. Powell M’76, P’01

Ms. Janet A. Roberts ’89, M’95Fidelity Investments

Mr. Edward I. RudmanAtlantic Trust Pell Rudman

Mr. Eric G. Sarasin ’85Bank Sarasin & Co. Ltd.

Mr. Charles W. Schmidt H’90

Mr. Lowell M. Schulman ’49

Mr. William S. Schulz ’51

Mr. David C. Seidman ’60

Mr. Maurice J. Skoler ’61, P’96Wachovia Securities LLC

Mr. Michael D. Sleeper ’63Imperial Distributors Inc.

Mr. Warren E. Smith M’80

Richard J. Snyder, Esq. ’60, H’94, P’93 ’01Duane Morris LLP

Ms. Diana Davis SpencerThe Shelby Cullom Davis Foundation

Mr. Harry Sterling Jr. M’78Columbia Management Group

Mr. Jefferson F. Vander Wolk ’53

Mrs. Adelaide Van Winkle

Mr. Jon F. Weber ’80, M’81American Real Estate Partners, L.P.

Mr. Allyn C. Woodward ’63, P’88 ’93Adams, Harkness & Hill Inc.

Mr. Gary L. Zwerling P’06

Trustees and Overseers

13

Dionne Thomas-Ahad M’06Two-year MBA Program

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 sci-

ence at St. Andrew’s University in

Scotland. Under the guidance of one of

Babson’s renowned creative writing pro-

fessors, Mary O’Donoghue, Julian wrote

a historical fiction piece about Octavian

Augustus, the founder of the Roman

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 eco-

nomic 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 develop-

ing a business plan for a biodiesel start-

up plant in Nebraska, working with the

United Nations-affiliated organization

Millennium Promise to rid the sub-

Sahara 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.

Profiles of Excellence

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 com-

petitive MBA Entrepreneurship Intensity

Track, which supports students with distinc-

tive business plans in devoting their sec-

ond year of study to launching their busi-

nesses 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 educa-

tion. Through a sustainable for-profit/not-

for-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 oper-

ational constraints that plague arts organi-

zations. At Babson, Dionne is getting the

education, the experience, the connections,

and the skills to make her vision a reality.

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 sum-

mer, 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 col-

lege 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 signif-

icantly increase the impact and accessibil-

ity of the arts across geographic and

socioeconomic boundaries.

From Honors Student to Fulbright Scholar to Wall Street S T U D E N T

Business and the Arts S T U D E N T

Julian Simcock ’05

Jenny Herd Noonan ’81 Independent marketing consultant $100,000 gift for term scholarshipsJeremiah J. Noonan ’81 SpencerStuart, Managing Partner, Boston Office (Noonan Women’s Leadership Award)

“Jenny and I have been long-time supporters of Babson. This gift is a continuation of our commitment to the school and our appreciationfor all it has given us and the way in which it has shaped our lives and careers.”

Gift to Babson

⎞⎟⎠−

⎞⎟⎠−

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

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

global thinking in the Babson community.”

The Glavin Center does this in three ways:

building strategic partnerships with top

institutions; supporting global concentra-

tions at both the undergraduate and gradu-

ate level; and building the capability to pro-

vide every Babson student with an interna-

tional experience. The Europe Institute has

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 trad-

ed for undergraduate enrollments at anoth-

er 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 develop-

ments for ILAB in the last year were the suc-

cessful 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,

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.

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 seek-

ing 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 entrepreneur-

ship education. The ultimate goal is to

“position Babson as the authority in entre-

preneurship education in the region.”

“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 oper-

ate in students’ lives and how they per-

ceive 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

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 author-

ity, all of these things have ethical aspects

to them,” she says.

Dr. Moland is working to integrate ethi-

cal principles not only into a variety of

courses but also cocurricular experiences

such as the Coaching for Teamwork and

Leadership Program (CLTP), where stu-

dents are assessed and receive feedback

on how well they incorporate ethical deci-

sion making into business situations.

Last spring, Dr. Moland received a resi-

dential fellowship from the American

Academy in Berlin that will further distin-

guish her as a thought leader and extend

the Babson brand in the international aca-

demic community. Next year, Dr. Moland

will be integrating her global experience to

enrich her work with Babson students

back on campus.

Global Ambassadors FA C U LT Y

Ethics in All Things 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

Lydia MolandAssistant Professor of PhilosophyArts and HumanitiesBA, MA, PhD, Boston University

⎞⎟⎠−

⎞⎟⎠−

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 greatestneed, endowment. Sally and I are happy to be able to make a leadership gift.”

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 “chal-

lenging, rigorous, and creative environ-

ment,” 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 men-

toring activities in the local community.

In athletics, she was an unrecruited

walk-on for the Beavers volleyball team,

and already has made an immediate

impact. Rashida predicts that the rela-

tively 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 suc-

cess. Rashida says, “You see others can

do it and you realize you can, too.”

Rashida Malcolm ’08Babson Undergraduate Student

Maximizing Opportunities S T U D E N T

Babson Fast Tracker S T U D E N T

Lee Ablove M’05Commercial Sales Manager, General Electric

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 busi-

ness world, whether you’re part of a con-

glomerate 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 schedul-

ing 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 tradition-

ally 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 nontra-

ditional business roles—all working togeth-

er with Babson’s world class faculty.

GE now has a more nimble, entrepre-

neurial manager who innovates, acts with

integrity, and looks for marketplace oppor-

tunities in different ways. And Lee has

developed the senior-level contacts he was

seeking to explore future career opportuni-

ties within the GE Health Care unit.

⎞⎟⎠−

⎞⎟⎠−

Marc H. ’89 and Ruti K. Bell Marc is Managing Director of Marc Bell Capital Partners $2 million gift to support merit- and need-based scholarshipsnce

“The cost of attending college is getting out of reach for many students. Our primaryreason for donating money to support scholarships is to help promising students afforda Babson education and graduate with less of a debt load as they begin their careers.”

Gift to Babson

Gordon PrichettProfessor and Chairman,

Mathematics & Sciences DivisionPhD, University of Wisconsin,

Madison

A Misplaced Modifier FA C U LT Y

The practice of management is a pas-

sion 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 busi-

ness ideas, many of which have become

more complex and global in their scope

and operations. “FME is an exciting pro-

gram that engages our entire communi-

ty,” she says. “It’s a big reason why a lot

of students choose Babson, so it’s impor-

tant that we deliver and manage it well.”

Professor Stoddard brings real world

examples of best management practices

to the classroom. Recently, she conduct-

ed 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 cur-

rently writing a book on IT management

challenges with Charlie Field, an execu-

tive vice president at EDS, the global IT

Consulting and Outsourcing firm. an

executive vice president at UBS, the

global investment banking and securi-

ties 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 prac-

tice. 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 cur-

rently serves—and is a driving force—on

Babson’s Diversity Committee.

Professor Gordon Prichett describes him-

self as a “misplaced modifier.” A recog-

nized mathematics teacher, researcher,

and author with a particular expertise in

cryptology, Prichett doesn’t exactly fit the

typical profile of a business school profes-

sor. 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 lan-

guage 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 mathe-

matics course on cryptology and coding

theory. The course brings together business,

engineering, and liberal arts students to

instill a deeper understanding of the his-

toric 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.

Donna StoddardAssociate Professor and Chair, Technology, Operations, and Information

Management Division DBA, Harvard Business School

Managment: Practice and Passion FA C U LT Y

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Lyle Howland ’79 Founder and President of Howland Enterprises, Inc. $150,000 gift to support two new term chairs in marketing and finance

“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 mygift strengthens the College’s ability to attract the best people to teach at Babson.”

Gift to Babson

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 profes-

sional women role models who demon-

strated how one could effectively manage

multiple commitments—and the flexibility

of the Babson Evening MBA program.

“Babson is very aware and accommo-

dating of what it entails to be a profession-

al and a graduate student. They continue

to work on new class formats and offer a

variety of options and extracurricular expe-

riences that fit into varying schedules, with-

out diluting anything. They make it both

manageable and worthwhile to pursue the

degree,” she enthused.

The applied focus of world-class profes-

sors 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 abil-

ity to develop real-time solutions for her

company as they pursue new strategic

directions for doing business in the U.S.

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 prob-

lems. Reflecting on his Babson education,

Erick points to several experiences that

have prepared him to be an entrepre-

neurial leader, with confidence in his abili-

ty to foster socioeconomic development

in Venezuela and in the world.

In his freshman year, Erick was the

CEO of a 30-member, profitable student-

run 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 frater-

nity’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 dif-

ference,” says Erick. This year, Professor

Joe Ricciardi is helping Erick study eco-

nomic systems, seeking new ways to

leverage the dynamics of different mar-

kets 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 some-

thing 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.”

A Full Plate S T U D E N T

Brenda LordBabson Evening MBA Student

Making a Difference around the World S T U D E N T

Erick Briceño Marquez ’06 Babson Undergraduate Student

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

“I hope my gift will continue to build the legacy of the school as competitive yet caring. It hasbeen my experience that Babson genuinely cares about its student and alumni and wants them tosucceed. I’d like my gift to focus on building this distinctive culture and sense of community.”

Gift to Babson

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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, serv-

ices, 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 syn-

ergy among disciplines that is rarely

found at other schools,” he says. Along

with teaching in Babson’s undergradu-

ate, graduate, and executive education

programs, he co-edits the Journal of

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 transition-

ing from bricks to clicks.”

Maria MinnitiAssociate Professor of

Economics and AssociateProfessor of Entrepreneurship

PhD, New York UniversityMS, Auburn University

BA, University “LaSapienza”of Rome, Italy

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, eth-

nicity, 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 moti-

vate 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 pur-

pose of GEM is to study the relationship

between entrepreneurship and economic

growth, particularly highlighting the differ-

ences 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 entrepre-

neurship. All three of the College’s aca-

demic centers, the Arthur M. Blank Center

for Entrepreneurship, the William F. Glavin

Center for Global Management, and the

Center for Women’s Leadership, have pro-

vided 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.

Understanding Entrepreneurial Behavior FA C U LT Y

Creating Value for Babson FA C U LT Y

Dhruv Grewal Professor of MarketingToyota Chair in Commerceand Electronic Business PhD, Virginia Tech

Thomas E. Lewis M’81 Fidelity Foundation Program Director $50,000 gift to support faculty development

“I feel very lucky to have gotten my MBA at Babson. It helped me broaden my background and position myself in the world of financialservices. Babson gave me the tools to take my career in a different direction so that companies could envision me in new roles.”

Gift to Babson

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Alumni Engagement“The partnership between alumni and the College generates the energy, creativity, and resources thathelp to sustain our standard of excellence and to propel the College to the next level of achievement.”– Peter R. Ramsey

Babson’s faculty, students, and administration

greatly appreciate the support and participa-

tion of our alumni community. The partner-

ship 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 achieve-

ment. Significant accomplishments from the

past year reflect the strength of our alumni

community and its commitment to Babson:

• Robert E. Weissman ’64 and his wife, Janet,

announced a $20 million gift to Babson, the

largest donation from an individual or a family

in the history of the College.

• Total funds raised in the nucleus phase of

the upcoming capital campaign reached

$35 million.

• Fund-raising for FY05 generated $8.8

million in total gifts, including $6.1 million

for the Annual Fund. Gifts from 6,300

alumni and parents and 500 corporations

and foundations helped to support our

outstanding students and faculty.

• Two new endowed faculty chairs were estab-

lished, one by Jefferson F. Vander Wolk ’53 and

the other by Brian M. Barefoot ’66, P’01, his

wife, Pam P’01, and his son, John M’01. Three

new term chairs were established, two by N.

Lyle Howland ’79 and one by a joint commit-

ment from the European Executive Alumni

Board, chaired by Muhammad H. Habib ’80.

• Babson alumni at PricewaterhouseCoopers

established our newest corporate affinity

group. They joined 11 other corporate and

career affinity groups that are actively gener-

ating valuable opportunities for professional

development and alumni networking.

These accomplishments give us great

momentum as we embark on an important

year for Babson. Another successful year of

planning and early campaign solicitations will

help set the stage for the public phase, which

will engage our entire alumni community. As

we look to the future, we will be focusing on

two central objectives:

• Expanding the reach of our Alumni

Association by offering more impactful

programming that engages alumni through-

out the United States and internationally.

No matter where our alumni are in the

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

by building enthusiasm and support for

Babson’s strategic initiatives.

We are in a great position to draw upon our

recent successes. We look forward to joining

with our alumni, parents, and friends to advance

Babson’s distinctive educational mission.

Peter R. RamseyVice President for Development and Alumni RelationsBA, St. Lawrence University

Fostering Partnerships and Sustaining Our Standards of Excellence

Alumni Association Board Initiatives for 2005-2006

Coaching — improve alumni engagement with

current undergraduate and graduate students

by building on the success of the Coaching for

Leadership and Teamwork Program and the

Alumni Mentor Program.

Black Alumni Affinity Group — work with campus

offices to expand the affinity group and con-

nect it more closely with the greater diversity

initiative of the College

Babson Alumni Resource Network (BARN) — link

seasoned alumni with students and alumni

seeking consulting services for their businesses

Back to Babson Weekend — work with Alumni

Relations to increase alumni attendance at the

annual reunion and homecoming event

Boston Alumni Club — restructure to better serve

the needs of alumni in Boston and the greater

New England area

Career Affinity Groups — participate more

actively in the financial services, technology,

and entrepreneurship affinity groups

Communications — communicate the mission

of the Alumni Association through various

media in a unified, consistent manner

Future Initiatives Evolution — expand current

initiatives to increase national and interna-

tional involvement and engagement

ess of

with

In this report, you have read about faculty

members who are engaged with students in

exciting projects, both inside and outside the

classroom. You have seen how alumni are

making a difference in mentoring, coaching,

and networking. You also have learned

more about the critical role of investors

in the College, who make many of these

impacts possible.

An investment in Babson creates contin-

uing advantages for our students—and

everyone in the Babson community benefits

from the growing academic reputation of

the College at home and abroad. But to

continue along this path, we need signifi-

cantly greater resources. That is why we are

preparing for the largest capital campaign in

Babson’s history.

I am tremendously excited about the

opportunities before us. With your partici-

pation 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

Philanthropy by Source and Purpose for FY 03, 04, and 05 Looking Forward

Faculty, Staff and FriendsCorporations & FoundationsParents

Alumni 59.6% 61.2% 66.7%

8.2% 10.4% 9.1%23.5% 19.1% 15.7%8.7% 9.4% 8.4%

$9.71 $8.76 $8.87

FY03 FY04 FY05

Total Dollars in millions

Unrestricted

Academic Programs/Facilities

Financial Aid

Faculty Support9.3% 13.6% 27.5%17.6% 14.4%

15.3%18.4% 27.6%24.2%

54.7% 44.4% 33.0%

$9.71 $8.76 $8.87

FY03 FY04 FY05

Total Dollars in millions

Giving by Purpose

Giving by Source (in millions)

Babson Park, MA 02457-0310 Phone 781 ·235 · 1200 www.babson.edu

bi

Vision

Babson College will be the globally recognized leader in entrepreneurial management

education. We will be known for thought leadership that advances management prac-

tice 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 wel-

come 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.