Dean of the Faculty A. Michael Spence will leave Harvard this June to become dean of Stanford University's Graduate School of Business.

Spence's surprise resignation, announced last week, marks an end to his six-year term in what many consider the University's second most powerful post. In a letter to members of the Faculty of Arts and Sciences (FAS) dated March 23, Spence cited personal reasons for his move, considered by academics to be a significant step down.

"I arrived at this decision after a great deal of thought," Spence wrote in the letter. "[My] principal reasons are related to immediate and extended family. It should be said at the outset that opportunities such as this do not present themselves on a schedule over which one has complete control."

University officials said yesterday they were shocked and disappointed by Spence's decision to leave, particularly as Harvard plans to embark on a mammoth multi-billion dollar fundraising drive in which the FAS dean was to play a central role.

Spence, 46, also leaves unfinished his highly publicized plan to increase the number of promotions from within the university, which he says is critical to keep Harvard competitive in an increasingly tight academic market.

"Mike Spence is leaving for personal reasons that have my complete support and understanding," President Derek C. Bok told The Crimson in a written statement yesterday. "Any institution should feel fortunate to have him."

Administrators said they have made no plans to search for Spence's replacement, and Bok indicated that he would consider naming an acting dean until he appoints a permanent replacement.

Stanford University Provost James N. Rosse said that although Spence did not ask to be considered for the business school job, the search committee was aware that the widely respected economist might be looking to leave Harvard.

"We talked with him [for the first time] several weeks ago," Rosse, who chaired the 15-member search committee, said inan interview yesterday. "A number of us knew him,and we knew he was restless."

Rosse said he was "aware" that Spence was underconsideration for positions at other schools,including the presidency of the University ofVirginia.

But Spence said in an interview last night thatit was not dissatisfaction with Harvard that ledhim to accept the Stanford post. "I wouldn'tcharacterize myself as restless," Spence said.

"[At Harvard,] you get to work with a wonderfulvery large group of people," Spence said. "The jobat Stanford is rather similar in terms of jobdescription, but it is true that the faculty isabout one-tenth the size. It probably is moremanageable."

Although Spence will no longer command as largea faculty, Rosse said Stanford's governanceprocedures will allow the new dean to have moreinput into the administration of the university asa whole.

"There are fewer faculty but more directcontact with them," said John Roberts, theassociate dean for academic affairs at Stanford'sbusiness school. "He'll have more contact than Iwould guess he had at Harvard."

In his role as dean of Stanford's GraduateSchool of Business, Spence will oversee about 80full-time and 25 part-time faculty members--aconsiderable decline in constituency from hisposition as dean of Harvard's 700-plus member artsand sciences faculty.

"I don't expect to have a lot of time to spendon my own research or teaching, [but] because theschool activities are from an area I came from, byvirtue of being the dean...I will be more involvedin the academic life of the institution...than onewho is in a faculty whose breadth is as great as afaculty of arts and sciences," Spence said.

In addition to the attraction of a smaller,more intimate atmosphere, some administrators saidthat Spence's departure is closely linked to thesignificant demands of an impending fundraisingdrive.

"Once the campaign starts, somebody is lockedinto the position," Rosse said. "So it's not atall odd to leave now."

"Here is a man of great intellectual [merit],"said David Riesman '31, Ford professor of socialsciences emeritus and long-time Harvard facultywatcher. "Some men of that temper discover totheir astonishment that they like raising money.This doesn't seem to be Mike Spence."

A Dark House Candidate

Spence, who had been the chair of the EconomicsDepartment, was considered a dark horse candidatefor the deanship when he was appointed inFebruary, 1984.

The Princeton graduate and Rhodes scholar is anexpert on industrial organization, imperfectlycompetitive markets and the theory of"signalling"--which shows how consumers often makepurchasing decisions based on superficialcharacteristics.

During his six years as dean, Spence has beenwidely praised for his exhaustive efforts togather information before committing to policydecisions. In addition to his junior faculty plan,Spence has overhauled FAS finances--which weredisorganized when he became dean--and pushed theinternationalization of Harvard.

"He has really come to know the job very well,"said George M. Whitesides, Mallinckrodt professorof chemistry and associate dean of FAS."Particularly in improving the career prospects ofjunior faculty members andrationalizing...financial details of the Faculty."

Aside from his substantial policy projects,Spence has demonstrated a unique ability to managethe complex personal and political aspects of thedeanship, his colleagues said yesterday.

"Most of the people in University Hall had avery high regard for Mike Spence," said AssociateDean for Academic Affairs Phyllis Keller, who hasworked closely with Spence over the last sixyears. "I regret his departure very much."

Taking Abuse

"Part of the job is to take a lot of abuse fromthe Faculty," Whitesides said. "I've beenrepeatedly impressed with his abilities to getinto acrimonious debates and keep his wits withhim and hold no grudges."

And these personal and professional qualitiesmay keep Spence, still relatively young, in therunning for future administrative jobs inacademia.

"I'm sure some people will say that short ofpresident of Harvard, there's nowhere to go butdown after [being] dean of FAS," said DavidPilbeam, associate dean for undergraduateeducation. "There are any number of jobs he couldend up with, including president of a majoruniversity."Crimson File PhotoPresident DEREK C. BOK now faces the task offinding a successor to Spence.