Case Interview Questions #00132: Suppose you are the newly appointed Dean of Harvard Business School (HBS), one of the top business schools in the world. A wealthy benefactor Henry Kravis, founding partner of global private equity firm KKR & Co (Kohlberg Kravis Roberts & Co., NYSE: KKR) has come to you with an exciting news that he will be giving HBS $100 million.
The donation is contingent, however, upon you using the money effectively. You have 1 week to propose to the benefactor Mr. Kravis where you would use the money before he will finalize the donation. How would you, as the Dean of HBS, propose to use this money?
First, as the Dean of HBS, I need to think through what does spending the money effectively mean? This is a not-for-profit learning institution, but that does not mean that it is not a business. For the Dean to be successful, he needs to understand what drives his business and where he can achieve the biggest return for his investment.
There are currently 4 major “business units” that provide a revenue stream for HBS. These include: