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As a business, HBS had a banner year in fiscal 2006. Demand for the School’s Executive Education programs was up, sales of cases and other print products grew, the MBA Program attained a 91 percent admissions yield, and total revenue advanced by 11.2 percent, exceeding operating expenses by $23 million. These and many more details are laid out in charts, tables, and narrative in the recently released HBS 2006 Annual Report.

Revenue from all sources for fiscal 2006, which ended last June 30, topped $368 million. HBS is unique in U.S. higher education in that more than half of its income is generated by units that operate in competitive, customer-driven markets: Executive Education and Harvard Business School Publishing (HBSP). Another 22 percent of operating revenue was derived from current-use gifts and endowment distribution. The School’s endowment ended the fiscal year at $2.3 billion, up 13 percent, reflecting strong returns and new gifts.

The School’s operating expenses rose 12.4 percent to $345 million, with the growth primarily reflecting increased investments in Executive Education and HBSP, and inflationary pressure on fixed costs such as employee compensation.

The report goes beyond financials to describe a number of new programs and initiatives designed to keep HBS at the forefront of management research and participant-centered learning. The Healthcare Initiative, for example, is a multidisciplinary program dedicated to innovative thinking and cutting-edge research that will attract, challenge, and enhance the skills of health-care leaders from around the world. The School opened a new research center in Mumbai, India, in March 2006, the sixth such center in its global network. And the C. Roland Christensen Center for Teaching and Learning worked with over 125 new and experienced faculty members to help them refine their case-method teaching skills. HBS also invested nearly $84 million to support faculty research and course development, among the School’s highest strategic priorities.

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