winter-spring 2001

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Highlights of the Hamada Years

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Dean Hamada
During the last eight years, the fiscal performance of the GSB has been a model of expert administration.

Maintaining Fiscal Responsibility

By John Huizinga
Deputy Dean for Faculty and Walter David “Bud” Fackler Professor of Economics

Imagine this scenario: It is the fall of 1992, and you’re part of a search committee. You are looking for a GSB dean that can handle the following financial situation: The most recent fiscal year closed with an operating deficit of more than $1 million. The school has committed to constructing a much-needed downtown building to house the part-time M.B.A. programs and to expand outreach to the business community that is critical to the future success of the full-time M.B.A. program. This building will require significant new funds from alumni contributions and new ongoing revenues to cover the substantial construction costs and increased operating expenses associated with a downtown home for the GSB. Who can you count on to deliver?

I was in exactly this situation and am proud to say I cast my vote for Bob Hamada. Luckily, the other members of the search committee did the same; then university president Hanna Gray concurred with our recommendation, and the GSB was placed in Bob’s capable hands.

Over the next eight years, the fiscal performance of the GSB was a model of expert administration. The school has run an operating surplus every year in which Bob has overseen the budget. The outstanding debt for the downtown Gleacher Center has been reduced from $43.5 million to $12 million. Over $5 million of capital expenditures have been made to renovate and update the existing Hyde Park facilities to serve the educational needs of our students better. All of our M.B.A. classrooms were remodeled, a new lounge was built for corporate recruiters, our career services interview rooms were redone, and our student computer lab continually has been expanded and upgraded. In addition, the breathtaking third floor of Stuart Hall has been opened to GSB students as a lounge and group study space.

There is no doubt that the GSB has been in capable financial hands for the past eight years and is well situated to address the challenges the future will bring. On the day Bob Hamada took over as dean, the GSB’s unrestricted reserve fund balance was $1.7 million and the market value of its endowment was $67.7 million. At the end of the most recent fiscal year, the unrestricted reserve fund balance was $23.2 million and the market value of the endowment was $211.3 million. And while overall stock market appreciation has significantly improved our endowment, I know Bob is responsible for having obtained 17 new professorships during his terms. There is no way the GSB could have remained competitive in the market for first-rate faculty without these additions to our endowment. I hope the current search committee can do as well as the one I served on in selecting a dean who can expertly manage the GSB’s financial situation.

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