Jerome T. Murphy, former associate dean of the School of Education, will take the helm of the long-leaderless school in September, President Neil L. Rudenstine announced yesterday.

Murphy was a top contender for the post following the departure of former dean Patricia A. Graham in early 1991, Rudenstine said in a interview yesterday. But in one of the major appointments of his first year, Harvard's president gave the nod to Columbia Teachers College professor Linda Darling-Hammond.

"There was a strong sense that Linda Darling-Hammond would be an unusual person to bring in at that time," in part because of her recent work with urban education, Rudenstine said. But "Jerry Murphy was clearly up there. Had [Darling-Hammond] said no at the time, we would certainly have appointed Jerry."

Darling-Hammond backed out of the post earlier this mummer, citing personal reasons that prevented her from leaving New York. The Education School returned to search mode. Rudenstine said that after reassessing candidate choices with faculty members and with a search committee, he found that "that recapitulation of the process turned out to be the same."

In an interview yesterday, Murphy said one of his first priorities will be boosting the school's financial condition. "We need to increase the student financial aid," the 53-year-old educational policy specialist said.

In addition, the longtime Education School professor said he hopes to "redefine the direction that the school has been moving in the last 10 years."

He said that Graham helped point the school towards a definite goal: improving the practice of schooling. Some of her new programs, such as the Urban Superintendents Program and the Risk and Prevention program, need enhancement and fundraising, he said.

Education School faculty members said Murphy differs from his predecessor, who stepped down from her Harvard post to lead a chicagobased research foundation.

"He's more creative than Graham," said Professor of Education Donald W. Oliver. The former dean "was party-line public school reform," Oliver said, while Murphy is "one of the most open-minded administrators we're had."

Murphy, Oliver said, is not afraid to consider creative new ideas for fundamental reforms that may shake up the public education establishment.

Professor of Education Richard F. Elmore said that Murphy is in a good position as an insider who has worked extensively with the school's faculty. "He recognizes the strength of the faculty and knows how to use them," Elmore says. "He knows a lot about this place."

"He knows the school extremely well, he'll have an easy time dealing with the internal tasks of the school," said Associate Dean Catherine T. Snow, who served for a year as the Education School's acting dean. She said Murphy is "in an excellent position to represent the school to the outside.

Rudenstine agreed that at this point, there are clear advantages to having an insider dean. Because of his knowledge of Harvard and his cross University connections, he said, Murphy "can hit the ground running."

And that, Rudenstine said, helps the University in its across-the-board academic and financial planning processes.

"To have had the school on hold for another six months or eight months" while seeking an external candidate may have caused difficulties, Rudestine said. In addition, he said, an outside candidate may not have been available; the search committee had a "low probability of turning up someone whom we already hadn't turned up."