About MIT Sloan

home / about mit sloan / history
  • History

    MIT Sloan is proud of its rich history of rigorous, relevant research and the impact of its faculty and students on the world. Here are some of the highlights from the School’s past century of groundbreaking work.

  • A Look Back, a Look Ahead: the Course XV Centennial Highlight Video

    See some of the notable people and events from a century of management education at MIT.


  • Highlights from 100 Years of Management Education

    1914 MIT faculty and administration establish Course XV, Engineering Administration, at MIT. Over time, Course XV evolves to become the MIT Sloan School of Management.
    1932 Amy Victoria Lister Higgins is the first woman to earn an undergraduate degree in Engineering Administration from MIT.
    1950 The Alfred P. Sloan Foundation makes a gift of more than $5 million to establish a School of Industrial Management (SIM).
    1958  Professor Franco Modigliani and Merton Miller of the University of Chicago launch a new era in modern finance with the Modigliani-Miller Theorems, introducing rigorous economic thinking to 1950s corporate finance.
    1959  Sloan Management Review, originally called Industrial Management Review, is founded. In 2013, MIT SMR publishes its first Chinese edition.
    1960 Professor Jay Forrester, SM ’45, founds the field of system dynamics, creating a new approach to understanding complex systems and how they behave over time.
    1960

    Professor and social psychologist Douglas McGregor publishes The Human Side of Enterprise, in which he introduces Theory X and Theory Y and argues that effective managers have an optimistic view of people.

    1961

    Professor John Little, SB ’48, PhD ’55, develops his proof of the queuing formula, commonly known as Little’s Law. The formula allows for an ideal output rate, influencing everything from the management of factories to hospital emergency rooms.

    1964

    The School of Industrial Management is renamed the Alfred P. Sloan School of Management, after its benefactor, Alfred P. Sloan, Jr., a graduate of MIT and then-chairman of General Motors.

    1970

    Professor Myron Scholes and Fischer Black create the Black-Scholes option pricing model, a model that is further developed by Robert Merton, PhD ’70, MIT Sloan Distinguished Professor of Finance. The widely applicable model is rapidly adopted by practitioners in the financial markets. Merton and Scholes go on to win the Nobel Prize in Economic Sciences for their work.

    1985 Professor Franco Modigliani wins the Nobel Memorial Prize in Economic Sciences for his work on savings and markets. His theory of life cycle investing, his work on behavioral economics, and the Modigliani-Miller Theorems continue to impact both personal and corporate finance today. 
    1989

    The MIT $10K Entrepreneurship Competition is launched in a joint effort by the Entrepreneurs Club and the Sloan New Ventures Association. By 2006, the event has become the MIT $100K and is established as the nation’s leading business plan competition.

    1990 The MIT Entrepreneurship Center, now the Martin Trust Center for MIT Entrepreneurship, is founded. The Trust Center supports and guides budding entrepreneurs from across the Institute, providing faculty and practitioner mentoring and guidance as well as meeting space and technology. 
    1990 Peter Senge, SM ‘72, PhD ‘78, MIT Sloan senior lecturer in leadership and sustainability, publishes The Fifth Discipline: The Art and Practice of the Learning Organization, and establishes the field of organizational learning.
    1996 The MIT-China Management Education Project is established, with partnerships with Fudan University of Shanghai and Tsinghua University of Beijing. The effort brings Chinese professors to MIT Sloan to work with faculty and take classes so that they can bring new approaches to their own universities.
    2000

    Global Entrepreneurship Lab (G-Lab) is founded, building on the success of Entrepreneurship Lab (E-Lab) to give students the opportunity to gain hands-on work experience with startups in emerging markets. G-Lab teams go on to work on more than 400 projects in 50 countries around the world.

    2004

    Professor Andrew Lo publishes the adaptive market hypothesis, an alternative to the efficient market hypothesis that proposes that the dynamics of evolution, like competition, mutation, and natural selection, determine the efficiency of financial markets.

    2007

    Professor Roberto Rigobon and Associate Professor Alberto Cavallo launch the Billion Prices Project, creating a real-time global inflation index by gathering product prices from around the Web and around the world.

    2008

    MIT Sloan adds a one-year Master of Finance degree program. By 2013, the program is one of the top-rated programs of its kind in the world.

    2008

    MIT Sloan expands its Action Learning offerings with the addition of Global Healthcare Delivery Lab, now GlobalHealth Lab, founded to enable students to tackle major healthcare delivery challenges around the world.

    2010

    The MIT Executive MBA program is launched. The 20-month program for mid-career executives features weekend classes and periodic one-week modules on campus along with an international project. The Class of 2014 includes more than 100 executives from around the world.

    2010

    MIT Sloan opens Building E62 and the Joan and William A. Porter 1967 Center for Management Education. As the greenest building on MIT's campus, E62 reflects both the School's and the Institute's commitment to sustainability and provides the School with valuable physical meeting, social, and classroom space.

    2014 MIT Sloan celebrates 100 years of Course XV, management education at MIT.