115 ALUMNI MAGAZINE
October-December 2009 www.iese.edu
Julia Prats Antonio Dávila Pedro Nueno Juan Roure C. Zott and R. Amit Architects of Going Entrepreneuring Entrepreneurship: Creating Value in the Future Beyond 80 Towards 2020 Four Big Questions Times of Change
KEYS FOR AWAKENING THE ENTREPRENEUR IN YOU
C O N T E N T S
IDEAS KEYS FOR AWAKENING THE ENTREPRENEUR IN YOU
10 IDEASAS NEW CROSSROADS JORDI CANALS Rediscovering the Role DESIGN of Business Schools 42 MEETING OF HARVARD-IESE COMMITTEE ENTREPRENEURSHIP ALUMNI Preparing Better Leaders 48 Architects of the Future Julia Prats 20 MAGAZINE INTERVIEW WITH BERNARD MEUNIER, NESTLÉ´S MARKET HEAD FOR SPAIN TUR THE CHALLENGE OF GROWTH July 4 I F E ? L l f Y^De AND PORTUGAL @b_V QcU NEW YORK 2e\ 7Q Going Beyond 80 TYc Uh TA BOGO \Y F It’s Time to Adapt to Changing ` 22 X Y Antonio Dávila PANAMA CIT TURIN 50
O PAULOULO Consumer Needs SÃOSÃ
S BUENOS AIRES THE IMPORTANCE OF INNOVATION D A OI R OS S FOCUSED PROGRAMS O R OF C THE LATEST ONI TH MEETING ALUMN Entrepreneuring Towards 2020 46 IESE’S HBS-IESE COMMITTEE THE CHAPTERS NEWS Targeting Success 54 266 PREPARINGP TE PTTEER CHAPTER NEWSVb_]Vb_] dXYcSQcU Pedro Nueno \Ucc_^c\UQb^UT\UQb^UT dXU d_dXURecYd_ BETTERBET LEADERS d_ Q``\YUT ]_bU gI_b[ SQ^RUUQcY\iQ``\YUTSQ^^RUUQcY\i T 3Ydi_V>Ug>U Y^ _bTUbd_d_TU\YfUb RidXU3Ydi_VdXU Y^dXUSYdii cc g_b\Tg_b\TY^ cUbfYSUc ecUT ^Uc^Ucc Q^TQ^TRUddUbRUddU QdUY^^_fQdY_^ 9^cdYdedUºc ]`UdYdYfU QddXU cdY]e\QdUY^^_fQdY_^dXU Creating Value in 48 IESE 57 Alumni Magazine Work-Life Colors in Crisis The hedge fund manager and Times of Change philanthropist participates in the breakfast series run by 322 The Wall Street Journal 10 AGENDA 58 Christoph Zott and Raphael Amit GEORGE SOROS CALLS FOR RADICAL CHANGE OCTOBER–DECEMBER 2009 / No. 115 70 Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 3 C O N T E N T S LIFE BREAKFAST WITH GEORGE SOROS 70 Th e Wall Street Journal Breakfast Series PEOPLE IESE & YOU VINAY KOTHARI (MBA ‘92) SUCCEED Building Business in India 60 Improve as a Leader, 78 YOU’RE IN THE NEWS 64 Improve as a Person AUTHORS 66 AWARDS 67 LAST WORD APPOINTMENTS 68 THE NEW ENCYCLICAL Vinay LIFE Kothari An Ethical View of the Crisis CHAPTER NEWS 74 4 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE ARE YOU THINKING OF THE NEXT QUARTER OR THE NEXT GENERATION ? In a family business, the answer is clear. Family business is a proven way to create, protect and pass on an inheritance from one generation to the next. Lombard Odier is a seventh generation family business. We share our experience with family enterprises all over the world. Find out what our family business can do for you. The next 200 years Avenida Diagonal 399 · Barcelona · Telephone 93 5500200 Paseo de la Castellana 66 · 28046 Madrid · Telephone 91 7902900 www.lombardodier.com LO_IESEAlumniMagE090925FamBusA4.indd 1 1.9.2009 11:52:29 115 October–December General Circulation 32,443 2009 ALUMNI MAGAZINE www.iese.edu/alumni International Circulation 30,000 (Edition in Spanish) 5,000 (International Edition) Editor Index of Companies Antonio Argandoña Executive Editor 3M ...... 10 Harvard University ...... 48 Oracle ...... 24 Mercedes Castelló Abbott ...... 54 Havas Media ...... 74 Otinix ...... 64 Managing Editor Aïda Rueda AC Nielson ...... 50 Honda...... 26 Philips ...... 10 Senior Editor, International Edition Alucha ...... 10 IBM ...... 32 Priceline.com ...... 32 Nicholas Corbishley Amazon ...... 20 Imago Group ...... 60 Prosper ...... 32 Art Director Apple ...... 20, 32 IMD ...... 38 Renault ...... 26 Alberto Anda Bancolombia ...... 32 Impact Media ...... 10 Reuters ...... 10 ([email protected]) BBC Worldwide ...... 10 Improve Digital ...... 10 Savera India Private ...... 60 Contributors BBVA ...... 64 INALDE ...... 74 Siebel Systems ...... 24 Cristina Aced British Petroleum ...... 38 Inditex ...... 10, 20, 32 Soros Fund Management ....70 Clara Castillejo BuyVIP ...... 10 Indra ...... 64 Stanford University ...... 38, 54 Alberto Chinchilla BYD ...... 26 INSEAD ...... 67 State University Tomás Crespo Camper ...... 64 Institut Català de Finances .64 of New York ...... 74 Ángela Martín CEIBS ...... 48, 54, 67 Instituto de Crédito Ofi cial .64 Stora Enso ...... 10 Marcella Moohan Cementos Molins ...... 64 Instituto Superior Suzuki...... 32 Alberto de Olano Javier Pampliega Chrysler ...... 26 da Empresa ...... 74 TECNUN...... 10 Larisa Tatge Competitiveness ...... 38 Intel ...... 10 Telefónica ...... 10 Miquel Utset Cremades & Calvo-Sotelo Inversora Pedralbes ...... 64 Tetra Brik ...... 10 Law Firm ...... 64 KBK Group ...... 60 The Boston Consulting Editing Secretary Dartmouth College ...... 42 Kellogg School Group ...... 70 Alejandra Arrocha Davigel ...... 50 of Management ...... 38 The Wharton School ...... 42, 54 Photography Der Norske Veritas ...... 64 Lavazza ...... 74 Universitat Pompeu Fabra .38 Jordi Estruch El Bulli ...... 20 Lending Club ...... 32 University of Michigan ...... 38 Miquel Llonch Ericsson ...... 26 Loewe ...... 64 University of Navarra ...... 10 Roger Rovira Europraxis ...... 64 London Business School...... 67 University of Pennsylvania42 Fotomobil.com Facebook ...... 10 Microsoft ...... 10, 24 Vaughan Systems ...... 10 Fiat...... 26 Mumbai University ...... 60 Vivaldi Partners ...... 54 Design and Layout Force Motors ...... 60 Musgo ...... 64 Ysios Capital Partners ...... 10 Javier Martínez Ford ...... 26 Naturhouse ...... 20 Zara ...... 32 Illustrations Gillette ...... 32 Neil D. Levin Graduate Zopa ...... 32 Luciano Lozano Goldman Sachs ...... 38 Institute ...... 74 Zurich ...... 64 (www.ilustracionesposibles.blogspot.com) Grameen Bank ...... 20 Nestlé ...... 50 Harvard Business Nexenta ...... 10 Advertising School ...... 38, 42, 48, 54, 67 Nutan Tiffi n Box Suppliers M&N Consulting Antonio Moré and Sabina Nogués de Trujillo Harvard Kennedy School of Charity Trust ...... 60 C/ Orient, 78-84, 1ª Planta. Of. 14 Government ...... 48 Optenet ...... 10 08190 Sant Cugat del Vallès Tel.: 93 544 12 34 E-mail: [email protected] Index of Alumni Photo Montage Anmar Printing Aixemeno, Höving, Pujals, Tugrupografi co Ruth (PADE-1-80) ...... 64 Frank (G-EMBA ’09) ...... 64 Joan M. (PADE-I-01) ...... 64 Avelló, Alejo (PDG ’03) ...... 10 Illius, Rescalvo, Published by Ayala, Mathias (G-EMBA ’05) ...... 64 Miguel (G-EMBA ’10) ...... 64 Estudios y Ediciones IESE, S.L. Depósito legal B.23.746-1963 Josep Maria (PDG-I-89) ...64 Kothary, Vinay (MBA ’92) ...60 Sanfeliu, ISSN 1138/2333 Azpiroz, Ramón (MBA ’97) .60 Lladós, Josep Lluis (G-EMBA ’06) 10 Batlló, Tony (MBA ’94) ...... 60 Ramón (G-EMBA ’09) ...... 64 Solé, Ramón (MBA ’89) ...... 64 Th e opinions expressed in the articles published in this magazine are solely those of the authors. Articles may Castillo Marín, Lluch, Javier (MBA ’99) ...... 10 Torres, be reproduced, provided that the original source is Ramiro (MBA ’98) ...... 74 Martínez Selma, Carlos (PADE-1-04) ...... 64 indicated. Cool, Hans (MBA ’03)...... 10 Marc (G-EMBA ’09) ...... 64 Tous, Josep (PDG-1-06) ...... 64 Frijters, Melé, Troniewski, Jöelle (G-EMBA ’08) ...... 10 Gaetano (G-EMBA ’10) .....74 Tomasz (G-EMBA ’05) ...... 64 García, Gustavo (PDG ’05) ...10 Molins López-Rodó, Fco. Urbano, Gassó, Javier (MBA ’72) ...... 64 Carmen (PDG-A-09)...... 64 Conchita (PADE-1-08) ...... 64 Pérez Gasull, Valle, Marco (G-EMBA ’10) .74 González, José Ramón (PDG-2-08) .64 Vaughan, Ferran (PADE-1-04) ...... 64 Piera Serra, Richard (EMBA ’86) ...... 10 González Ubanell, Julio Javier (MBA ’85) ...... 64 Volonteiro, IESE/University of Navarra Alumni Magazine (PADE-II-89) ...... 64 Pinedo, Simona (PDG-1-06) ...... 64 Avda. Pearson, 21. 08034 Barcelona Hanzé, Pepe (G-EMBA ’09) .64 Juan Ignacio (EMBA ’88) .64 Tel.: 93 253 42 00 • Fax: 93 253 43 43 Hoces, Lope (G-EMBA ’08) ..64 Powell, Evan (G-EMBA ’08) 10 Cno. del Cerro del Águila, 3 Ctra. de Castilla, km 5,180. 28023 Madrid Tel: 91 211 30 00 • Fax: 91 357 29 13 Numbers refer to the fi rst page of the article in which the alumnus appears. www.ee-iese.com 6 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE E D I T O R I A L WELCOME TO THE NEW MAGAZINE t’s true - we’re in times of change. For that reason, the Alumni Magazine, your ANTONIO magazine, has also changed. Not too much, though. In this inaugural edition, ARGANDOÑA you will fi nd a good part of what was in the former magazine. But you will also Editor of the Alumni Magazine Idiscover a new design and some new names. We have also sharpened the fo- [email protected] cus, so that we are better able to cover topics that are relevant to you. On pages 8 and 9, we explain the reasons behind the change. A few months ago, a sister publication was born to the Alumni Magazine: IESE Insight. Insight is a management review which features all the latest research carried out by presti- gious professors and researchers from all over the world. It is aimed at bringing managers and entrepreneurs up to speed on recent ideas in business in a rigor- ous, relevant and straightforward way. At the same time that Insight was launched, we became inspired to update and enhance IESE’s Alumni Magazine for its growing group of readers all over the world. We realized that for the Alumni Magazine to best fulfi ll its objective of serving IESE graduates, we needed to deeply refl ect on the publication’s purpose within IESE and the Alumni Association. What you have in your hands is the result of this reflection - and many hours of work. The magazine seeks to present in a more open way for IESE alumni what occupies the minds of our readers (Cover Story), the ideas of our faculty (Ideas, Last Word) and what is happening on our campuses (Crossroads). We also hope this new format will better serve our alumni and what you are doing (People and Life). We don’t know if we’ve accomplished our task. But you can be sure that we have done our best. Now it’s your turn. First, read the new IESE Alumni Magazine. Second, enjoy it. And third - very important - send us your comments, criticism and suggestions, which we would very much like to receive. Because if the old magazine was yours, we want this new magazine to be even more so. Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 7 I E S E NEW DESIGN I D E A S ENTREPRENEURSHIP I D E A S ENTREPRENEURSHIP \Ycdg_e\TRUfYbdeQ\\iY^VY^YdU Red Qd95C5ºc4U`Qbd]U^d_V5^dbU`bU ^_dQ\\dXU^Q]Ucg_e\TRUQcgU\\ ^UebcXY`XQfU_^UdXY^WY^S_]]_^* AN ENTRE- [^_g^ GUg_e\TQ\c_VY^T`U_`\U Y^^_fQdYfU\UQTUbcgX_QbUSQ`QR\U \Y[U"" iUQb _\T3Qb\_c?\YfUYbQ gX_ _VRbY^WY^WdXURUcd_ed_VdX_cU PRENEUR IS V_e^TUTQ]_RY\Uc_\edY_^cS_]`Q^i Qb_e^TdXU] Y^2bQWQ @_bdeWQ\Q^Tc_\TYdd_=Y SOMEONE WHO ARCHITECTS OF Sb_c_VdY^" ' DXYcgQcdXUVYbcd 6Y^Q\\i Q^_dXUbS_]]_^]YcdQ[UYc KEYS FOR QSaeYcYdY_^_VYdc[Y^TY^5eb_`U ?b d_dXY^[dXQdcdQbdY^WQ^Ug`b_ZUSdYcQ CREATES A 5YfY^T2UbW^c]ib Q>_bgUWYQ^U^ \Y^UQb`b_SUcc gXU^Y^VQSdQ\\\Qe^SX WY^UUbgX_Z_Y^UTQS_]`Q^igXYSX Uc Q^T Wb_gdX `QdXc XQfU e`c Q^T COMPANY, BUT THE FUTURE gQcTUfU\_`Y^WQSeddY^W UTWU^_YcU T_g^cQ^TbUaeYbU[^_g\UTWU_VX_g SQ^SU\Y^W `b_TeSd dXQd Q\\_gc V_b d_]Q^QWUSbYcUc gXYSXSQ^Q``UQbQd SO ARE THOSE `UbVUSdS_]]e^YSQdY_^ 5YfY^TVU\d Q^idY]U DXQdYcgXiYdYcY]`_bdQ^d AWAKENING c_YTU^dYVYUTgYdXdXUS_]`Q^idXQd d_aeYS[\iYTU^dYVi`_ccYR\U]YcQ\YW^ WHO FIND NEW XUWQfUYdXYcQ\\d_RUQR\Ud_\Qe^SX ]U^dc XQfUcQVUdi^UdcY^`\QSUQ^TQ dXU`b_TeSd UfU^gXU^UfUbidXY^W ·`QbQSXedU¸gXYSXSQ^RbUQ[dXUVQ\\ `_Y^dUTd_VQY\ebU DXQd`b_TeSdd_ DX_cU gX_ XQfU ceSSUccVe\\i _fUb WAY S OF D OI NG THE ENTREPRENEUR TQiYcQ^QRc_\edU]ecdV_b_fUb" S_]UceSX_RcdQS\UccX_gfUbicY]Y\Qb OLD TASKS. S_e^dbYUcº Qb]YUc Y^S\eTY^W dXU RUXQfY_b*dXUiQbU_`U^d_SXQ^WUQ^T E C ºc =Q^i]_bUe^[^_g^`U_`\U d_ aeYS[\i ]_TYViY^W Q^i U\U]U^dc g_e\TQ``UQb_^dXU\Ycd `U_`\UgX_ ^UUTUTV_bcebfYfQ\ dXUiQbUcdb_^W\i JULIA S_^_]Ycd :_cU`X XQfUbUY^fU^dUTdXUVedebUV_bdXUYb TUdUb]Y^UTd_dQ[UdXUS_]`Q^iV_b IN YOU PRATS CSXe]`UdUb ecUT S_]`Q^YUc dXUYb U]`\_iUUc Q^T gQbTQ^TdXUiQbUaeYS[TUSYcY_^]Q[ Professor of d_ cQi dXQd U^dbU dXUYbVQ]Y\YUc+`U_`\UgX_ TUc`YdU Ubc DXUiWUdYdbYWXdRUSQecUdXUiXQfU Entrepreneurship, IESE cebb_e^TUTdXU]cU\fUcRidXUbYWXd Business School `bU^Uebc QbU dXU ^_dQ``UQbY^WY^dXU`bUcc XQfUXQT QbSXYdUSdc_VdXUVe ^_c]Q\\Y]`QSd_^dXUUS_^_]iQ^T dUQ]Q^TQbU`bU`QbUTd_Uh`\_bU^Ug The media has lionized debU 9dS_]UcQc^_ _^c_SYUdiQd\QbWU `QdXc_bd_cdQbdQWQY^Vb_]cSbQdSX IESE Prof. Julia Prats has E ceb`bYcU dXUbUV_bU gXU^UfUb^USUccQbi overseen the editing dXQdU^dbU`bU^Uebc FALSE DILEMMAS entrepreneurs such as Mark ^_g`\QiQ\UQTY^Wb_\UY^dXUSeb ·DXU`U_`\UgX_WUd_^Y^dXYc GUXQfUQ^Q\ijUTY^dXYcQbdYS\U of this special edition bU^dUS_^_]YSU^fYb_^]U^d gXUbU lg_b\TQbUdXU`U_`\UgX_WUde` dXU]idXcdXQdQbUeceQ\\iQcc_SYQd of the magazine on dXUVedebUYcc_]UgXQde^SUbdQY^ Q^T\__[V_bdXUSYbSe]cdQ^SUcdXUi UTgYdXU^dbU`bU^UebcXY`Q^TgXYSX b_V b_V :e:e\YQ@bQdc\YQ@bQdc dXUXUQT_VdXU dX 1^TgXU^9cQi·U^dbU`bU^Ueb ¸9 gQ^d Q^TYVdXUiSQ^ºdVY^TdXU] cQT\iY]`_fUbYcXQ^QbUQgXYSXYc Zuckerberg, the founder cScSX__\ºc4U`Qbd]U^d_V5^dbU`bU X__\ºc4U`Qbd]U entrepreneurship, which T_^ºd]UQ^dXU\_^U\i ]QTWU^Yec ]Q[UdXU] ¸ QSdeQ\\iQc_ebSU_VU^bYSX]U^dV_b ^UebcXY` TUcSbY^UebcXY` TUcSbYRUcQ^UhUbSYcUY^RU includes some of the latest gX_cU_^\i_RZUSdYfUYcd_dQ[UXYc c_SYUdiQcQgX_\U GU^UUTd_bUWQY^ dXUU^dbU`bU^UebdXUU^dbU`bU^UebcXY`]_Te\U_Vc _bXUb`b_ZUSdd_VbeYdY_^bUWQbT\Ucc 7U_bWU2Ub^QbTCXQgºcg_bTcce] dXUUhSYdU]U^d_Vg_b[Y^WXQbTQ^T of Facebook, thus reinforcing the dXU5hUSedYfU=21 5^dbU`bU^UebdXU5hUSedYfU=21 ideas from IESE’s professors _VUfUbidXY^WQ^TUfUbi_^UU\cU QcdU ]QbYjUdXUU^dbU`bU^UebYQ\c`YbYdgU dXUYTUQdXQd`U_`\UbUQ`gXQddXUi `b_WbQ]`QbdYSY`Q^dcQbUQc[UT`b_WbQ] `QbdYSY` of entrepreneurship as bU_di`UgXYSXXQcSQecUTWbUQdTQ] `b_]_dUXUbUQd95C5 9^VQSd dXUYTUQ c_g DXUbUgQbT^UUT^_dRU_^\iVY P d_Uh`\QY^gXidd_Uh`\QY^gXidXUiTUVY^UdXU] XU QWUd_U^dbU`bU^UebcXY` dXQdW__T_``_bde^YdYUcT_^_dUhYcd ^Q^SYQ\ QcdXUbUYcQ\c_cQdYcVQSdY_^ misconception that those who start cUcU\fUcQcU^dbU`bU^Uebcd_dXUYb\fUcQcU^dbU`bU well as the perspectives of RedQbUSbUQdUTYcS_^Âb]UTRiQ\\ Y^SbUQdY^Wc_]UdXY^W^UgQ^TcUU S\Qcc]QdUc DXU^dXUS\QccgQdSXUcQcX_bd!)'S\Qcc]QdUc DXU^dXUS\QccgQdSXUcQc cVY\] 1^U^dbU`bU^UebYcc_]U_^UgX_ dXUcd_bYUc_VU^dbU`bU^UebYQ\Y^Y Y^WYdWb_g _bY^]Q^QWY^Wd_bUfYfU QR_edQ^U^dbU`bU^UebgX_\Qe^SXUcQS_]`Q^iY^dXUQR_e_ dQ^U^dbU`bU^UebgX_\Qe^SXUcQ many entrepreneurs and SbUQdUcQS_]`Q^i Redc_QbUdX_cU dYQdYfUcgU[^_g 6}\YhBUfeU\dQ c_]UdXY^WgXYSXcUU]UTT__]UT businesses are necessarily young Qed_]_dYfUY^Tecdbi Qed_]_dYfUY^Tecdbi intrapreneurs from among gX_ VY^T ^Ug gQic V_e^TUb Q^T `bUcY d_TYcQ``UQb DXUbUQbU^_]QWYSV_b 1V1VdUbgQbT dXU`QbdYSY`Q^dcQbUQc[UTd_S_]`QbUdXUdUbgQbT dXU`QbdYSY`Q^dcQbUQc[U _VT_Y^W_\TdQc[c_b TU^d_V>QdebX_ecU ]e\QcV_bceSSUccVe\U^dbU`bU^Ueb VY\]ºc`b_dQW_^YcdgYdXdXUU^dbU`bU^UebcY^dXUYbWb_e` VY\]ºc`b_dQW_^YcdgYdXdXUU^dbU`bU^Ue our alumni. TUfU\_` ^Ug RecY ReY\dQ^_``_bde^Ydi cXY` RedgUXQfUV_e^TdXQdSUbdQY^ 4_dXUYb`Ubc_^Q\YdYUc]QdSX/1bUdXUbUSXQbQSdUbYcdYSc4_dXUYb`Ubc_^Q\YdYUc]QdSX/1bUdXUb ^Ucc ]_TU\c V_b dXU Vb_]QSXQ^WUY^dXU RUXQfY_bYcS_]]_^d_Q\\dX_cUgX_ and have an entrepreneurial gene Y^S_]]_^/DXUiaeYS[\ibUQ\YjUdXQddXUbUYc^_S_] Y^S_]]_^/DXUiaeYS[\ibUQ\YjUdXQd S_]`Q^idXQdU]`\_ic V__T Q^T TYUdY^W Y^ XQfUTUSYTUTd_RUU^dbU`bU^Uebc ]_^`b_VY\U*c_]UQbUcXi _dXUbcQbU_edW_Y^W 1^TdXU]_^`b_VY\U*c_]UQbUcXi _dXUbcQbU_ dXU] 9^_dXUbg_bTc U^dbU`bU^Uebc Tecdbi 6QSUTgYdX]Qb[Ud\YRUb UYdXUb_^dXUYb_g^_bV_b_dXUbc bUQc_^gXidXUbUYc^_S_]]_^`Ubc_^Q\Ydidi`U QS bUQc_^gXidXUbUYc^_S_]]_^`Ubc QbUdX_cUgX_SQ^SbUQdUQVedebUV_b Q\YjQdY_^ BUfeU\dQSQ]Ue`gYdX hardwired into their DNA. Here, IESE S_bTY^Wd_@b_V S_bTY^Wd_@b_V @b@bQdcQdc YcdXQddXUbUYc^_]idXYSQ\·U^ YcdXQddXUbUYc Q^iRecY^UccµUfU^gXU^dXURecY^Ucc Q^Y^^_fQdYfURecY^Ucc]_TU\Q^T 9^dXYcUTYdY_^_VdXU95C51\e]^Y ddbU`bU^UebYQ\WU^U ¸bU`bU^UebYQ\WU^U ¸ Yc^ºddXUYbcµY^QgQigXYSXYcY^^_fQ QXYWX\iS_]`UdYdYfUVbQ^SXYcU]_T =QWQjY^UgUVUQdebUdXUcd_bYUc_V DXYcYcdXUVYbcdY^QcUbYUc_V]idDXYcYcdXUVYbcdY^QcUbYUc_V]idXcQ^T]YcS_^SU` X dYfU Wb_e^TRbUQ[Y^WQ^Tc_]UdY]Uc U\gYdXgXYSXXUXQcQSXYUfUTbQ`YT fQbY_ec U^dbU`bU^Uebc gX_ XQfU faculty and alumni entrepreneurs dY_^ccebb_e^TY^WU^dbU`bU^UebcXdY_^ccebb_e^TY^WU^dbU`bU^UebcXY`bUReVVUTRi]U] Y` UfU^S_e^dUbY^deYdYfU Wb_gdX gYdXQ^QfUbQWUQ^^eQ\Wb_gdX cdeTYUTQd95C5 Q^TgU`eR\YcXcUf RURUbc_V95C5ºcU^dbU`bU^UebcXY`VQSe\di DXUYbS_]]U^dcbc_V95C5ºcU^dbU`bU^UebcXY`VQSe\d bQdU_V$%`UbSU^dcY^SU!))) UbQ\QbdYS\UcRi]U]RUbc_V95C5ºc QbUcUS_^TUTRidXUUh`UbYU^SU_VdXUQbUcUS_^TUTRidXUUh`UbYU^SU_VdXU]Q^i95C5Q\e]^Y] 6UbbQ^1TbYwQ^T:e\YC_\UbQd5\ 5^dbU`bU^UebcXY`4U`Qbd]U^d DXU deconstruct this myth. gXgX_XQfUceSSUccVe\\i\Qe^SXUTdXUYb_g^RecY^UccUc _XQfUceSSUccVe\\i\Qe^SXUTdXUYb 2e\\Y+CdUfU:_RcQd1``\U+1]Q^SY_ 1^_dXUbgYTUc`bUQTRed]Yc W_Q\_VdXYcc`USYQ\bU`_bdYcd_TYc`U\ ?bdUWQQd9^TYdUh+=eXQ]]QTIe dQ[U^^_dY_^YcdXQdRUY^WQ^U^ ]YcS_^SU`dY_^cQR_edc_]UdXY^WQc APTITUDESAPTITUDES NOTNOT ATTITUDESATTITUDES ^ecQd7bQ]UU^2Q^[ Q^T:UVV2Uj_c dbU`bU^Ueb·Yc_^\iV_bWU^YecUc bUQ\QcU^dbU`bU^UebcXY` Q^Td_e^ MARCELLA lGXQddXUbUYc Y^cdUQT @b_V GXQddXUbUYc Y^cdUQT @b_V @b@bQdcQ cQic YcQcUd_V Qd1]Qj_^QbUQ\\QbSXYdUSdc_VdXU Q^T`U_`\UgYdX\eS[ ¸gXU^dXU[Ui TUbcS_bUdXQdRUY^WQ^U^dbU`bU^Ueb MOOHAN S_S_]]_^S_]`UdU^SYUc_bRUXQfY_bc C_ cY^SURU ]]_^S_]`UdU^SYUc_bRUXQf VedebU DXUiQbU_^\iQVUgUhQ]`\Uc d_ U^dbU`bU^UebcXY` Yc Y^ Y^^_fQ YcQ\\QR_edXQbTg_b[Q^TgY\\`_gUb XQXQfY_bSQ^RU\UQb^UT Q^i_^USQ^Se\dYfQdUU^dbU`bU fY_bSQ^RU\UQb^UT Q^i_^USQ^S _VVQ]_ecU^dbU`bU^Uebc 9VgUgUbU dY_^Q^T QR_fUQ\\ UVV_bdQ^T`Ub ^_dc_]UdXY^W`U_`\UQbUUYdXUbR_b^ ^UebYQ\c[Y\\c Zecd\Y[UQ^i_dXUbQ^UebYQ\c[Y\\c Zecd\Y[UQ^i_dXUbQ`dYdeTU @bQdc`_Y^dc`d =FLJ=HJ=F=MJK@AHAFFGN9LAGF9F< d_\YcdUfUbi_^UgX_XQcRUU^Q^U^ cYcdU^SU 1\\dXUSQcUcgUXQfUS_]U gYdX_b^_d GUSXQ\\U^WUi_ed_TYc ;@9F?= d_XUbS_\\UQWeU@b_d_XUbS_\\UQWeU@b_V V @Q@QR\_3QbT_^QR\_3QbT ºc]_TU\_VdXU dbU`bU^Ueb_fUbdXU\QcdTUSQTU dXU QSb_ccdXb_eWX_ebbUcUQbSX`b_ZUSdc S_fUbdXUU^dbU`bU^UebY^cYTUi_e 10 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESIESEE AlumniAlumni Magazine IESIESEE OCTOBER–DECEMBEROCTOBER–DECEMBER 22009 / No. 115 11 20 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 21 COVER STORY. Where would IESE be without its cases? The IDEAS. IESE professors present articles on their latest research. Cover Story brings together professors and Alumni to discuss a In this issue, their attention focuses on the phenomenon of relevant topic. entrepreneurship. C R O S OS R OI A D S AGENDA P E O P L E ALUMNI PRESENTATIONS MEETINGS INDIA IS Prof. Jasmijn C. Bol, of the University Meeting of the Advisory Board 7 of Illinois at Urbana-Champaign, of IRCO (International Research Cen- ONE OF THE will be at IESE’s campus in Madrid ter on Organizations) on September Vinay Kothari Dave Ulrich on October 26 to present her latest 10 at IESE’s campus in Madrid. FEW COUNTRIES 8TH IESE-IRCO PEOPLE research on Supervisor Discretion MANAGEMENT SYMPOSIUM in Target Setting. The session will 3rd Pharmacy Industry Meeting: LEAST AFFECTED OCTOBER 19-20, MADRID be coordinated by Prof. Fernando Towards a New Industry Model? Peñalva. Chief executives of many of the BY THE @b_V E\bYSXgY\\TYcSeccdXU leading pharmaceutical companies In December / January, Prof. Kimio will gather at IESE’s campus in aeQ\YdYUc_VQW__T\UQTUb Kase will present the Value Creation Barcelona on November 5. DOWNTURN, in Sports Management study. Q^T@b_V 3QbT_^QgY\\ The Global Alumni Reunion (GAR) Building MAINLY BECAUSE Uh`\QY^X_gd_`YS[_ed will be held in New York on October 10 and 11. OF ITS PRUDENT `_dU^dYQ\\UQTUbcVb_]Q]_^W U]`\_iUUc On October 20, the Health Technol- FISCAL POLICIES. ogy Meeting will be held under the slogan “Recognizing Value.” Business The 24th Meeting of the Auto- mobile Sector will be held at the GRADUATIONS OTHER PROGRAMS AND SESSIONS campus in Barcelona from November 24-25. On November 6 the graduation Monday October 5, Barcelona / Short ceremonies of the Strathmore AMP Focused Programs: Tough Times, and the PMD Brazil will take place Tough Strategies. in India in Barcelona. On November 5, Prof. Eva Ascarza, Tuesday October 20, Madrid / Short of London Business School, will be at OTHER Focused Programs: Operational IESE’s campus in Barcelona to present MEETINGS Finance: Current Assets and Trea- her latest research work, Modeling PROGRAMS sury Management. Churn and Usage Behavior in November 12, Seminar Vinay Kothari (MBA ’92) came to ^dXU%dXSU^debi YdgQc]QdXU]QdYSYQ^cY^9^ FIRM ROOTS V_b5eb_`UQ^`b_WbQ]cRUSQecU_VdXUYbW\_RQ\SXQbQSdUb TYQgX_SQ]Ue`gYdXdXUYTUQ_VjUb_ ]Q[Y^WQ ?bYWY^Q\\iVb_]dXU^_bdX9^TYQ^CdQdU_VBQZQcdXQ^ Q^TS\_cUb`b_hY]Ydi Contractual Settings. The session on the Building and IESE looking for the knowledge and l On October 6 and 7, New York will be Tuesday October 20, Barcelona / Short will be coordinated by Prof. Jorge Management of ]QZ_bY]`QSd_^cSYU^SUQ^TS_]]UbSUQb_e^T ;_dXQbYºc`QbU^dc]_fUTd_=e]RQYY^dXU\QdU!)% c ;_dXQbY\Y[UT95C5ºcXYWX\iW\_RQ\Q``b_QSX " iUQbV_b the setting of the World Business Fo- Focused Programs: Marketing and González. Global Teams. experience that would help him turn dXUg_b\T D_TQi 9^TYQQ^TYdcbQ`YT\iUh`Q^TY^W 8YcVQdXUbcdQbdUTQbUQ\UcdQdUTUfU\_` ]QdQ^T`Q^ 5eb_`UQ^\Y^[c 8UgQcQ\c_ rum, which will feature an interview Sales Management: Managing, Orga- IUS_^_]iQbU`_YcUTd_]Q[UQ^_dXUbY]`QSd_^ ]U^dRecY^UccdXUbU gXYSX\QdUbVeU\\UT U^dYSUTRidXUTYcdY^SdYfUSe\debQ\Uh`U his aspiration to run a global company dXURecY^Uccg_b\TµTUc`YdUdXUUS_^_]YST_g^ ;_dXQbYºcTbYfUd__^UTQi\UQTQS_]`Q^i bYU^SUdXQd95C5_VVUbUT QcS_]`QbUT by Paddy Miller and the CEO of Abbott, nizing and Motivating the Sales Team FOLLOWING THE MBA, Miles White. into a reality. Today, he has launched deb^ cQicFY^Qi;_dXQbY XY]cU\V ·=iVQ]Y\iXQcQ\gQicUQb^UTdXUYb d__dXUbRecY^UcccSX__\c ·9XQTQ\gQic ·9^TYQYc_^U_VdXUS_e^dbYUc\UQcdQçUSdUTRidXUSbYcYc TQY\iRbUQT¹T_Y^WRecY^Ucc º8QfY^WRUU^ THE DESIRE TO PURSUE gQ^dUTd_\UQb^QR_edQ^UgSe\debU c_ Tuesday October 20, Barcelona / Short HIS GOALS AND LEAD On October 19-21, the Institute for Focused Programs: Global Sourcing major ventures with two fellow IESE ]QY^\iRUSQecU_VYdc`beTU^dÂcSQ\`_\YSYUc ¸cQic;_dXQbY cebb_e^TUTRiceSXQ^U^fYb_^]U^dcY^SU 9gQcQ\Ydd\UTYVVUbU^d ¸bUV\USdc;_dXQbY A GLOBAL FIRM IN HIS Media and Entertainment (IME), in of Services: Myths, Realities and graduates, while helping IESE’s alumni ·DXUWb_gdXbQdUYc`b_ZUSdUTd_Y^SbUQcUVb_]dXUSebbU^d UQb\iSXY\TX__T YdgQc_^\i^QdebQ\dXQd9 8UgQcQ\bUQTi]QbbYUTQddXUdY]U_VdXU New York, will host a Short Focused Future Directions. &`UbSU^dd_Q``b_hY]QdU\i(d_)`UbSU^dRidXUU^T_V g_e\TSX__cUd_W_Y^d_RecY^UccQ^TTbUQ] HOME COUNTRY LED HIM `b_WbQ] c_XYcgYVUgQcQR\Ud_Uh`UbY Program on Branding in Media community in India blossom. " ! ¸ _VXQfY^WQW\_RQ\RecY^Ucc ¸XUcQic BACK TO INDIA. U^SU2QbSU\_^QQcgU\\ XU^_dUc 1^T Y^ and Entertainment, led by faculty Tuesday November 3, Barcelona / Short th D_R__cdUS_^_]YS]_]U^de] 9^TYQºcW_fUb^]U^d ;_dXQbYSQbbYUT_edXYcU^dYbUcSX__\Y^W VQSd ;_dXQbYºcVYbcdSXY\TgQcR_b^gXY\U members from the Kellogg School of Focused Programs: Strategic Manage- November 18, Barcelona / Short Fo- 17 Finance XQcQ^^_e^SUT]QZ_bcdY]e\ec`QS[QWUcQ^TY^fUcd]U^dc Y^=e]RQY Q^TRUWQ^XYcZ_eb^Uid_gQbT XUgQcY^dXU=21`b_WbQ] 8UgQc`Qb Management. ment of Global Value Chains. cused Programs: Management Com- Y^cUSd_bcceSXQcbUQ\UcdQdUQ^TY^VbQcdbeSdebU Y^S\eT RUS_]Y^WQ^U^dbU`bU^UebRiUQb^Y^WQRQSXU\_bºcTUWbUU dYSe\Qb\iY^V\eU^SUTRiS\QccUc\UTRi`b_VUcc_bc@UTb_ . petencies: Portfolio Management. Y^W`_gUbWU^UbQdY_^ XYWXgQic QYb`_bdcQ^TY^TecdbYQ\ Y^QSS_e^dY^WQ^TUS_^_]YScQd=e]RQYE^YfUbcYdi 9dc__^ >eU^__^U^dbU`bU^UebcXY`Q^T@QR\_6Ub^v^TUj_^VY Monday November 2 will see the Wednesday November 4, Barcelona / Forum `Qb[c XUcQYT ;_dXQbYYcgU\\ `_cYdY_^UTd_Q^Q\ijUXYc cdbeS[XY] X_gUfUb dXQdXU^UUTUT]_bU`bU`QbQdY_^YVXU ^Q^SU XUcQYT 6_\\_gY^WdXU=21 dXUTUcYbUd_`ebceU inauguration of the first module of the Short Focused Programs: Developing November 24, Barcelona / Short S_e^dbiºcUS_^_]YSVedebU 8UcYdc_^dXUR_QbTc_VTYbUS gQcW_Y^Wd_bUQSXXYcW_Q\ YTUQ\\iY^Q^Y^dUb^QdY_^Q\U^ XYcW_Q\cQ^T\UQTQW\_RQ\VYb]Y^XYcX_]US_e^dbi\UT Pan African AMP. Creativity and Innovation Within Focused Programs: Management MEETINGS d_bc_VdXbUUS_]`Q^YUcµ;2;7b_e` CQfUbQQ^T9]QW_ fYb_^]U^d ·9bUQ\YjUTdXQdY^_bTUbd_ceSSUUTY^W\_RQ\ XY]RQS[d_9^TYQ the Company. Competencies: How to Develop My NOVEMBER. 4-5, MADRID CSbUU^c 8UQ\c_cUbfUcQcQ^_^ UhUSedYfUTYbUSd_b_^dXU RecY^Ucc 9^UUTUTd_e`TQdU]icU\VgYdX]_TUb^]Q^QWU The New York-based IME will also be Relational Capacity. R_QbT_V6_bSU=_d_bc OCTOBER–DECEMBER 2009 / No. 115 OCTOBER–DECEMBER 2009 / No. 115 58 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 59 60 Alumni Magazine IESE Alumni Magazine IESE 61 AGENDA. Find out, at a glance, what is going on at IESE during PEOPLE. Alumni discuss their professional experiences. Also the next three months. read about the latest news from IESE professors and Alumni, as well as reports on recent guest speakers at our campuses. L I F E L I F E TURIN July 4 NEW YORK ?^:e\i$ 9dQ\YQ^1\e]^YS_^ l fUbWUT_^ @Q^Q]Q^YQ^1\e]^Y]Ud_^:e\i l!$Y^@Q^Q]Q3Ydi 95C5@b_V :_cU`Dw`YUc\UTQcUccY_^_^UçUS dYfUQTfYc_biR_QbTc 1bWeY^WdXQddXU R_QbT]ecdcUbfUQcQ]_d_bV_bSXQ^WU The hedge fund manager and THE LATEST ON gYdXY^QS_]`Q^iQ^T^_dQcQRebTU^ philanthropist participates in dXU`b_VUcc_b_VcdbQdUWYS]Q^QWU]U^d IESE’S ALUMNI TUcSbYRUTdXU^USUccQbicdU`cdXUR_QbT the breakfast series run by CHAPTERS ]ecddQ[Ud_U^cebUQS_]`Q^iºc\_^W The Wall Street Journal dUb]cebfYfQ\Q^TceSSUcc DXUQ\e]^Y Q\c_U^Z_iUTQcUccY_^Ri7_^jQ\_ 7]Uj2UdQ^S_ebd `b_VUcc_bQ^TXUQT _VVQ]Y\iRecY^UccQd9>1<45 gX_ TYcSeccUTdXUTi^Qcdi]_TU\_VVQ]Y\i U_bWU C_b_c dedY_^ºcd_hYSQccUdcbU]QY^Y^WY^dXU CHAPTER NEWS RecY^Ucc @b_V 2UdQ^S_ebdXYWX\YWXdUT 2 SXQYb]Q^_VC_ _\TU^dYdi dXUSU^dbQ\b_\U_VVQ]Y\ie^YdiQ^T b_c 6e^T =Q^ THE OBAMA GXY\U QS[^_g\UTWY^W dXQd dXU S_]]Yd]U^dY^dXU\_^W dUb]ceSSUcc QWU]U^d Q^T ADMINISTRATION’S VY^Q^SYQ\cUSd_bXQTU^Z_iUT]Q^i _VQVQ]Y\iRecY^Ucc dXU ?`U^ C_ MANAGEMENT OF iUQbc_VXYWXUQb^Y^WcµQSS_e^dY^W 6Y^Q\\i 3Qb\_c@ 8_b^cdUY^ XUQT_V 7_^jQ\_7]Ujc`_[UQR_eddXU SYUdi 9^cdYdedU V_be`d_!$`UbSU^d_Vd_dQ\ECS_b THE CRISIS HAS BEEN NEW YORK ecUTRidXU3Ydi_V>UgI_b[d_ dXU\Ucc_^c\UQb^UTVb_]dXYcSQcU dXU95C55hUSedYfU5TeSQdY_^dUQ] Ti^QcdYS]_TU\_VVQ]Y\iRecY^Ucc GRU\YUfUcdXQddXU `_bQdUUQb^Y^WµC_b_ccQYTdXQdceSX cdY]e\QdUY^^_fQdY_^Y^dXUSYdi SQ^RUUQcY\iQ``\YUTd_dXURecY `bUcU^dUTdg_^UgcU^Y_b]Q^QWU CREDIBLE BUT WELL GEORGE ?RQ]QQT]Y^Yc QcYdeQdY_^·SQ^^_dRU]QY^dQY^UT June 10 Q^TTYcSeccUTdXU OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 70 71 74 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 75 LIFE. Wherever you live in the world, we invite you to share the LIFE. CHAPTER NEWS. The latest news from the Alumni defi ning moments in the life of our school. Association’s chapters. After all, IESE is truly a global school. MORE MAGAZINE, MORE ALUMNI, MORE IESE 8 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE I D E A S HIGHLIGHTS C R O S OS R OI A D S WbQTeQdUcY^Y]`_bdQ^d]Q^QWUbYQ\`_cYdY_^cY^dX_cUÂb]c AWARDS gQcbU\QdYfU\ic]Q\\Q^TdXUYbbUc`_^cYRY\YdYUcgUbU`b_RQR\i SOCIAL cY]Y\Qbd_dX_cU_V_dXUb`b_VUccY_^Q\cgX_XQT^_dQddU^TUT RecY^UcccSX__\ =_bU_fUb dXUbUQbU]Q^iRecY^UcccSX__\ COSIMO CHIESA ENTREPRENEURS REDISCOVERING Banking @Qe\5 C`USd_b DQ]]i1\\U^ 3Qbi WbQTeQdUcg_b[Y^WY^]Q^i_dXUbY^TecdbYUcQ^TXQfY^WQ l 3_cY]_3XYUcQ 95C5`b_VUcc_b 3__`Ub P E O P L E P E O P L E AUTHORS EUROPEAN COMPETITION POLICY UNDER THE SPOTLIGHT The Brand and its Strengths YOU’RE What Has Worked, JUAN MANUEL IN THE NEWS What Needs Improving? DE TORO La marca y sus ARE YOU IN THE NEWS? circunstancias We are interested in all your latest news. Deusto Send your comments to [email protected] XAVIER VIVES “Mimar” la marca y EMBA ‘88 5^SQ]`1^T_bbQ =QbQZ_Y^c!( Juan Ignacio Pinedo del Campo ]_^dX _\TRb_dXUbBQ]^ profundizar en el verdadero XQcRUU^Q``_Y^dUTTYbUSd_b Competition Policy valor que tiene para el WU^UbQ\_VdXU6Ub^v^TUj FUWQ Pepe Hanzé in the EU BUcUQbSX6_e^TQdY_^Q^T Q^TXYcgYVU 9cQRU\\Q XQfU OXFORD UNIVERSITY PRESS consumidor son claves ?`XdXQ\]_\_Wi9^cdYdedU R_dX Q^^_e^SUTdXUQbbYfQ\_VdXUYb RQcUTY^?fYUT_ TQeWXdUb 9cQRU\\Q R_b^_^:e^U( para gestionar la marca OOOOOO Y^7eQiQaeY\ 5SeQT_b en un entorno borrascoso. G-EMBA ‘05 OOOOOO IESE Prof. Xavier Vives edits El profesor del IESE Juan Mathias Illius G-EMBA ‘10 new book which takes a Miguel Rescalvo G-EMBA. IESE Alumni from the U.S. and Mexico gathered in Aspen, Colorado for 4 days of skiing, live music and nightlife from March Q^TXYcgYVU 2UddiD_bbUc 26-30. They were also joined by an Australian delegate from London! The participants were Andie Jenkins, Tomas Rehfisch (G-EMBA Manuel de Toro recomienda XQfUQ^^_e^SUTdXURYbdX_VdXUYb XQcRUU^Q``_Y^dUTTYbUSd_b_V look back at 50 years of EU PDG-A-09. Carmen Urbano, ‘03), Jorge Davalos (G-EMBA ‘04), Steven Hickson (G-EMBA ‘02), Fernando Garcia (G-EMBA ‘03), Sean Ugrin (G-EMBA ‘03), Henrik levantar la mirada y alejarla c_^ =QdXYQc1^d_^Y_ R_b^_^ 3\Y]QdU3XQ^WUCUbfYSUcY^>_bdX financial director of the animation Scherer (G-EMBA ‘03) and Carlos de la Torre (MBA ‘06). Competition Policy. 1`bY\# Y^2QbSU\_^Q 1]UbYSQV_bdXUS_]`Q^i4Ub studio Ilion, has informed IESE that the del corto plazo >_bc[UFUbYdQc4>F studio’s latest film, Planet 51, an alien Tomasz Troniewski OOOOOO comedy adventure, will open at cinemas Q^TXYcgYVU =QWTQ\U^Q MBA ‘89 on November 20. ¿Qué enfoque destacaría hoy en la gU\S_]UTdXURYbdX_VdXUYb 1VdUb_SSe`iY^WfQbY_eccU^Y_b IN REMEMBRANCE l buena gestión de una marca? TQeWXdUb 1^d_^YQ Y^GQbcQg_^ `_cdcQdS_]`Q^YUcceSXQc 5\fQ\_bTUe^Q]QbSQbUcYTUU^U\ VADEMÉCUM =Qi' 3Q]`UbQ^T<_UgU BQ]^C_\} Q^^YfUbcQbi_VdXUYbWbQTeQdY_^ FRANCISCO JAVIER MOLINS ]UbSQT_ UcTUSYb U^\_cS_^ce]Y OOOOOO 3Q`TUfY\QXQcRUU^bUSbeYdUT DXUigUbUZ_Y^UTRi@b_V @UTb_ LÓPEZ-RODÓ (MBA ‘72) T_bUc 1\Â^Q\ c_^U\\_c\_caeUTU DEL BRAND MANAGEMENT G-EMBA ‘08 d__fUbcUUdXUY^dUb^QdY_^Q\ >eU^_ gX_`bUcU^dUTQcUccY_^ passed away on July 1 at the age dUb]Y^Qbv^cYe^Q]QbSQ\UcQ`_bdQ Lope Hoces Uh`Q^cY_^_VdXUC`Q^YcXSXQY^ 3\QccbU`bUcU^dQdYfUc3Qb\_c of 62. Husband and father of four fQ\_b_^_ @_bdQ^d_ \_`bY]Ub_Uc El objetivo del profesor Juan Manuel ción con otras variables comerciales dYUT dXU[^_dgYdXXYcVYQ^S}U cd_bU=ecW_ gXYSXc`USYQ\YjUcY^ D_bbUcQ^T6Ubbv^7_^jv\Uj children, Javier Molins was vice- cQRUbae}aeYUbUU\S_^ce]YT_bQ\ de Toro con esta obra es clarificar como son el producto, el precio, los 7\_bYQ _^=Qi"#Y^2QbSU\_^Q X_]UTUS_bQdY_^ WYVdcQ^TVQcXY_^ XU\`UT_bWQ^YjUdXUUfU^d president of Cementos Molins, as aeUcUTYbYWU\Q]QbSQiae}fQ\_bUc conceptos, encuadrar la gestión de canales de distribución, etc. En el 8YcV_b]Ub=21S\Qcc]QdUcgUbU OOOOOO well as chief executive of Inversora 3_]`UdYdY_^`_\YSicX_e\TRUQ cY\YU^SUQ^TSQ`QSYdiV_bcU\V bUV_b] _VQ^Y^TU`U^TU^dQWU^Si Q\_^WdXU TYVUbU^SYQ\Uc\UQ`_bdQVbU^dUQ_dbQc la marca en el campo y horizonte segundo realiza un zoom out, que Q]_^WdXUgUTTY^WWeUcdc PADE-II-89 PADE-1-08 Pedralbes and Otinix. l [Ui`bY_bYdiV_bW_fUb^]U^dc Uc ?^U_VdXUSXQ\\U^WUc\iY^WQXUQT \Y^Uc_VdXUE C 6UTUbQ\DbQTU3_] Q\dUb^QdYfQcTU\QS_]`UdU^SYQ E^Q adecuados, y sintetizar, en la medida desvela cómo debe ser gestionada OOOOOO DXYcS\QcccXQbUT\e^SXd_WUdXUb ?^:e^U!& @b_V :_c} 64 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 65 66 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 67 PEOPLE. YOU’RE IN THE NEWS. This continues to be the space PEOPLE. AUTHORS. A recap of the latest books from IESE’s for news about Alumni and graduated classes. professors. I E S E & YOU L A S T O WR OI R D THE NEW ENCYCLICAL MORE INFORMATION: www.iese.edu/alumni SUCCEED: Maximize THE ADVANTAGES Your Soft An Ethical View IMPROVE AS A Power Skills OF THE IESE If you missed Prof. Brian of the Crisis LEADER, IMPROVE O’Connor Leggett’s session MEMBER CARD of the Continuous Education AS A PERSON Program on soft power, XU95C5=U]RUb3QbTYTU^dYÂUci_eQcQ]U]RUb_V you can now access it by dXU95C51\e]^Y1cc_SYQdY_^Q^T_`U^cdXUT__bd_Q e-conference. The talk T gYTUbQ^WU_VcUbfYSUc 9dQ\c_`b_fYTUcQSSUccd_QbQ^WU gives an overview of _Vc`USYQ\TUQ\cdXQdSQ^cQfUi_e]_^Ui_^QX_cd_V`b_TeSdcQ^T XU^Ug_^\Y^U`\QdV_b] 5hUSedY^Wi_ebQSdY_^`\Q^ soft power: the inherent CE33554XQcRUU^ 5fQ\eQdY^Wi_eb_``_bde^YdYUc qualities that constitute cUbfYSUc 1\\=U]RUbc_VdXU95C51\e]^Y1cc_SYQdY_^Q\c_bUSUYfU T gQb]\igU\S_]UTRi]Q^i 4UfU\_`Y^Wi_ebVedebUSQbUUb personal magnetism and the Qed_]QdYS]U]RUbcXY`_VdXU1cc_SYQdY_^_V7bQTeQdUc_VdXUE^YfUbcYdi 1\e]^YQb_e^TdXUg_b\T `\Q^ accompanying rhetorical and gX_Q``bUSYQdUR_dXYdcaeQ\YdiQ^T _V>QfQbbQ gXYSXQ\c_RbY^WcgYdXYdQ^e]RUb_V\eSbQdYfURU^UÂdc non-verbal communication ecUb VbYU^T\Y^Ucc 1cgUUh`\QY^UT 4ebY^WUQSX_VdXUcUcdQWUc Y^dXU\QcdYcceU_VdXU]QWQjY^U dXU 1\e]^YSQ^S_^ce\d_bT_g^\_QTQ skills. According to Leggett, soft power is the ability to DOMÈNEC MELÉ `\QdV_b]QY]cd_`b_fYTU]U]RUbc Rb_QTbQ^WU_VQSQTU]YSS_^dU^d DKV: NH Hoteles ZURICH CONNECT gYdXUTeSQdY_^Q\Q^TS_QSXY^W 9^QTTYdY_^ dXUiSQ^dUcddXUYb persuade others without Chair of Business Ethics d__\cdXQdU^QR\UdXU]d_S_^dY^eU [^_g\UTWUQcdXUiW_Q\_^WRi any recourse to hard Following a new exclusive The NH Hotel chain is Zurich Connect is a branch TUfU\_`Y^WQc\UQTUbc QcgU\\QcQ S_]`\UdY^W`bQSdYSQ\UhUbSYcUc power behavior. It is about agreement with DKV, offering special rates of the Zurich Group which excellently priced medical for Spain and Portugal, offers direct insurance XYWX\i`Ubc_^Q\YjUTcUbfYSU DXU CE33554Q\c_VUQdebUcQ\YVU inducement and attraction, eR\YcXUTY^dXUS_^dUhd RUdgUU^UdXYScQ^TRecY^UccQSdYfYdi 5dXYScYc INCREDIBLE insurance plans are including discounts of up to products via the internet `\QdV_b]cdbeSdebUcdXU\UQb^Y^W S_QSXY^WcUbfYSU gXYSXQ\\_gc namely what enables us _VdXUSebbU^dUS_^_]YS _VdU^Y^db_TeSUTQddXUdQY\ U^T_VRecY^UccQc `b_SUccY^d_cUfU^TYçUbU^d`XbQcUc* ecUbcd_TYcSeccdXUYb`Ubc_^Q\ OFFERS available to all IESE Alumni 8 percent on the best prices and phone. Zurich Connect SbYcYc dXU^Ug5^SiS\YSQ\Ri cY]`\iQbUcdbYSdY_^d_QSdYfYdigXYSX Y^UccU^SU to master our emotions to Association Members and available at each hotel as is designed to cover your _RZUSdYfUcgYdXQdUQ]_VUh`Ubdc reach out and attract others 2U^UTYSdHF9 ·3QbYdQcY^ YcS_^cYTUbUTcdbYSd\iUS_^_]YS 5dXYScYccUU^ CU\VQccUcc]U^d Q^T95C5`b_VUcc_bc DXb_eWXdXYc their families (spouse and well as a loyalty points insurance needs with the P with a clear vision by way of FUbYdQdU¸<_fUY^DbedX QcQ^QTT _^*Qf_YTRbYRUc Uhd_bdY_^ VbQeT dQh E^TUbcdQ^TY^WdXU]Qb[Ud cUbfYSUQ^TdXU`Ubc_^Q\WeYTQ^SUYd children) with two policy program. best guarantees, the most our verbal and non-verbal YcQT_Se]U^dgXYSXV_SecUc_^dXU^UUTV_b UfQcY_^ UdS ?bYdYcecUTQcQ`b_R\U] c_\fY^W 3X__cY^Wi_eb_`dY_^c _çUbc]U]RUbcgY\\RUQR\Ud_dbe\i options: “DKV INTEGRAL” competitive prices and a 3bUQdY^Wi_ebRbQ^T ]QhY]YjUdXUYbSQbUUb`_dU^dYQ\ communication skills. and “DKV MUNDISALUD.” broad range of services. Y^dUWbQ\Xe]Q^TUfU\_`]U^d 9dc`UQ[cQR_ed d__\ Red^UfUbQcQWeYTY^W`bY^SY`\UdXQd\UQTcd_ dXUSebbU^dSbYcYc ^_dd_]U^dY_^]Q^i_dXUb dXUS_^cYTUbQdY_^TebY^WTUSYcY_^ ]Q[Y^W_VdXU bU\UfQ^dYcceUc W__T_bRQTY^ÃYSdUT_^`U_`\U_bWb_e`c 2U^UTYSdHF9U^S_ebQWUcecd_S_^Vb_^d 9e^TUbcdQ^TdXYc·^UggQi¸QcQbUS_fUbi_V INFORMATION IS POWER: OTHER OTHER ADVANTAGES d_TQiºc`b_R\U]cgYdXS_^VYTU^SUbQdXUb c_]UdXY^WdXQdYc Y^UccU^SU S_]]_^cU^cYSQ\ E-CONFERENCES: dXQ^bUcYW^QdY_^Q^Td_U]RbQSUdXU^Ug RedgXYSXYcUQcY\iV_bW_ddU^*dXQdRecY^Ucc CONSULT THE LIBRARY ON-LINE bUc`_^cYRY\YdYUcY]`_cUTe`_^ecRiQcUbY_ec QSdYfYdiYc^ºdcY]`\iQ]QddUb_V`b_TeSdY_^ Q^TS_]`\UhSbYcYc 1^TbQdXUbdXQ^cd_``Y^W TYcdbYRedY_^Q^TVY^Q^SY^W 1R_fUQ\\ YdYc ¼=ehdgqYZadalqafLae]k Vehicle Hotels F@%@gl]d]k ;dmZ\]?gd^H]j]dY\Y Car Insurance 1cQ]U]RUb_VdXU95C51\e]^Y DXU5S_^_]Ycd QcgU\\QcT_g^\_QT of Crisis: The Importance Purchase 9;%@gl]d]k Gflae]@gl]d JYn]flka:dYf[ Rmja[`;gff][l cX_bdQddXQd Yd`edcV_bgQbTQ`b_`_cQ\V_bdXU QXe]Q^QSdYfYdi gYdXQ^Y^dbY^cYSUdXYSQ\ 9m\a 9`gl]dk Hj]kla_]@gl]dk :dm]khY[]:Yj[]dgfY VedebUgXYSXYcR_dX`b_V_e^TQ^TR_\T 8U TY]U^cY_^ @b_VYd TbYfU^`b_TeSdY_^ 1cc_SYQdY_^i_eSQ^QSSUccXYWX aeQ\Ydi S_]`Q^i`b_Â\UcBUedUbc of Networking and Self 9mlgenad]k =PHG@gl]d]k Jg[:dYf[@gl]dk J]k]jnYK]d^%KlgjY_] Professional Y^V_b]QdY_^QddXU95C5 78 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 79 80 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE IESE & YOU. A section outlining some of the key benefi ts of LAST WORD. Some fi nal thoughts while you wait fot the next being a Member of the Alumni Association. edition of the magazine. he creation of a new magazine at IESE, IESE IESE, as well as the team at Cases Associats. We particular- Insightt, has given us a great excuse (and op- ly would like to thank Javier Rodriguez and Toni Piqué for portunity) to give theIESEAlumni Magazinee a the great eff ort they made to ensure that the new design T new look. Our objective was clear: give an even and format are truly special. clearer picture of IESE’s many activities around the world. We wanted to show you in an even better way “what’s As you know, the magazine is published in both English new around here” - what we’re doing, what professors and Spanish to serve our readers, something that will con- are researching, who has visited the campus and what our tinue as we take this next step forward in the magazine’s alumni are accomplishing. history. We hope you enjoy the new and improved IESE Alumni Magazinee - and, of course, we welcome all your Throughout the large process of redesigning the maga- suggestions and advice for future editions! zine, we have had the help of many people who work at Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 9 I D E A S ENTREPRENEURSHIP KEYS FOR AWAKENING THE ENTREPRENEUR IN YOU Th e media has lionized entrepreneurs such as Mark Zuckerberg, the founder of Facebook, thus reinforcing the misconception that those who start businesses are necessarily young and have an entrepreneurial gene hardwired into their DNA. Here, IESE faculty and alumni entrepreneurs deconstruct this myth. MARCELLA MOOHAN 10 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESIESEE rof.rof. JuliaJulia PrPratsats, theth head of the school’s DepartmentDepartme of Entrepre- neurship, descridescribesbe an exercise in the entrepreneurshipentrepreneurs module of the Executive MBA.MBA Entrepreneur program participantsparticip are asked P to explain why ttheyhe define them- selves as entrepreneursentrepr to their clclassmates.assmates. Then the class watches a shorts 1970s film ababoutouo t an entrepreneur who launches a company in the auautomotivetomotive industry.industry. Afterward,Afterward, the participants are askedaske to compare the fifilm’slm’s protagonist with the entrepreneentrepreneursu in their group. Do their personalities match? Are ththereer characteristics in common? They quickly realize ththatat there is no com- momonn profile: some are shy, others are ooutgoing. And the rereasonason why there is no common pepersonalityrs type, ac- cocordingrding to Prof.Prof. PrPratsats, is that there is no mythical “en- trtrepreneurialepreneurial gene.”gene.” ThisThis is the first in a series of mythsmyth and misconcep- titionsons surrounding entrepreneurship rebuffed by mem- bebersrs of IESE’s entrepreneurship facufaculty.lt Their comments araree seconded by the experience of the many IESE alumni whwhoo have successfully launched theirtheir own businesses. APTITUDESAPTITUDES NNOTOT ATTITATTITUDESUDES WhatWhat therethere is,is, instead,instead, Prof.Prof. PratsPra says, is a set of lcommon competencies or behaviors.behav So, since be- haviorhavior can be learned, anyone can cultivatec entrepre- neurialneurial skills - just like any other aptitude.apt Prats points to herher colleaguecolleague Prof.Prof. Pablo CardonaCard ’s model of the AlumniAlumni MagazMagazineine IESIESEE OCTOBER–DECEMBEROCTOBER–DECEMBER 22009 / No. 115 11 I D E A S three levels of competencies entrepreneurs should nur- ture (See Figure 1.). “Everybody is a potential entrepreneur,” Prats’ de- partmental colleague, Prof. Christoph Zott says. “There is this stereotype that it’s in your DNA. Entre- preneurship is a behavior and like all behaviors it can be learned,” he concurred. One example Zott cites is “influence skills,” some- thing that can be acquired, for example, in a negotiation skills class. If you do not have a two-page CV listing your previous successful start-ups, you are going to need to learn what Zott calls “symbolic or affective behaviors to connect with investors and convince them that they should trust you.” Such skills can be a cheap and effec- tive resource when money is tight. The difference between personalities and behav- iors comes into sharp focus when IESE alumni explain how they got where they are rather than what they have achieved. Gustavo García (PDG ’05) launched Buy VIP, an online luxury clothing and accessories store in 2006. Since then, its turnover has climbed from €500,000 to Gustavo García CEO of BuyVIP €28 million in 2008. But how did García and his team PDG-B-05 get there? Alejo Avelló “We chased our best brands for years. We called them Managing Director every quarter and arranged meetings with them at every of CEIT and TECNUN fair or event where they were presenting their collection. PDG-03 We sent them cake at Christmas and ice cream in sum- mer. Sometimes they acknowledged the gift, sometimes not. But we kept chipping away until one by one, we got them all to work with us. Perseverance works, I guess,” he concluded. Hans W. Cool Director of Alucha MBA ‘03 NOT FOR EVERYONE While faculty agreed that business schools could and Jöelle Fritjers l Managing Director of Improve should bring out and help hone students’ inner en- Digital trepreneurial abilities, most pointed out that students Global EMBA ‘08 still have to decide whether it is right for them, though. “There are people who would prefer to have a fixed work schedule,” Pedro Nueno, IESE professor of Entrepre- neurship, said. “And then there are people who seek suc- cess regardless of how many long nights or weekends it takes,” he added. According to Nueno, these entrepreneurs are not mythical superheroes. They are simply very determined people with a strong spirit of sacrifice and capacity for hard work that they can tap into at critical times. Evan Powell (Global Executive MBA ‘08) is an example of that. He launched Nexenta without external capital, also known as “bootstrapping.” Nexenta manages data storage for enterprises on the open-source principal, in contrast to the proprietary technologies favored by the major players. The company has grown by 450 percent since January. “If you are going to bootstrap, your life is going to be impacted. You will have neither time nor money for your hobbies. And 100 hour weeks may be the norm,” he said. OUT OF THE GARAGE AND ONTO THE ROAD Another enduring entrepreneurialism myth is that Richard Vaughan Josep Sanfeliu l Founder of Vaughan Systems Cofounder of Ysios Capital Partners of the geek in the garage who invents a new product. EMBA ‘86 Global EMBA ‘07 “Entrepreneurs are constantly thought of as inventors,” Zott said. “But the biggest insight of my research is that Javier Lluch Chief Executive of Impactmedia successful entrepreneurs don’t need to invent a brand- MBA ‘07 new product like the iPod,” he said. 12 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE I D E A S IESE AND CEIT: INNOVATION MEETS BUSINESS THE FUNDAMENTAL Entrepreneurship (CEFIE). Where there is a telecomss ROLE OF “Last year, we spent a compelling commercial operatorsrs EDUCATION week with people from application for the and largege Partnerships between TECNUN, teaching them researchers’ innovations, fi rms. universities and the basics of business and the center creates a The fi rm’sm’s companies are key to management,” he said. In spin company. To date, founder,, supporting innovation. turn, TECNUN promotes the 12 companies that Franciscoco MartínMartín,, To help support business entrepreneurialism have emerged as a launchedd thethe companycompanyny innovation, IESE works through CEIT, a center result of CEIT’s work in 1997 withwith €3,000€3,000 to bridge the gap focused on applied have generated more while workingorking from a between research and investigation and than 300 jobs, most of tiny offi ce in TECNUN’sTECNUN N’s development and the supporting young which are high-skilled. basement.nt. commercial applications researchers. As José Ignacio de Carlos of new technologies Gandasegui (MBA ’91), Since landingnding its fi rst by collaborating with CEIT is a multidisciplinary the center’s assistant contractt with the SSpanishpanish TECNUN, the bilingual center that boasts director, said, “Our reach incumbentent telecomstelecoms engineering school in nine research teams is extremely wide- operator,r, Telefónica,Telefónica, in Northern Spain. IESE working in different ranging: we generate 2001, Optenetptenet now hashas and TECNUN are both fi elds of knowledge, knowledge which is over 60 clientsclients acrossacross the offspring of the including materials, easily transferable to the globebe and provides University of Navarra. mechanical dynamics and the market in the form securityy solutionssolutions to over design, environmental of new entrepreneurial 57 millionon users. MartMartín,ín, “Business schools have electronics and initiatives.” a formerr faculty member the responsibility to engineering. The center at TECNUN,UN, givesgives credit provide management provides a forum for One example of such to its parentrent universituniversity.y. education for people researchers to take “bold an initiative is Optenet, “One of (the University with ideas,” said Mathieu but prudent risks with a global IT company of Navarra’s)rra’s) strengths Carenzo, director of their innovations,” said that develops security is knowinging how to link IESE’s Center for Family- the center’s managing solutions for Internet businesss with academiaacademia,”,” Owned Business and director, Alejo Avelló. service providers, he said. Instead, their ingenuity lies in synthesizing existing pro- Another ingenious aspect of the program is that it cesses or products, or applying different processes. Such is “stocked” with volunteers from across the English- is the case of Richard Vaughan (Executive MBA ’86). speaking world, from retired Irish farmers to Los Ange- In 2001, his English-language improvement company, les firewomen. As a result, students are exposed to a vari- Vaughan Systems, launched VaughanTown, a kind of ety of accents and cultures. The volunteers are provided residential talk-a-thon. with bed and board in exchange for conversation. The initiative consisted of “stocking” an abandoned The other flaw in the myth of the geek in the garage Spanish village with 20 English speakers from all over who invents a new product is that the product is likely the world and 20 Spaniards. After 10 days of fun and to remain there between the lawnmower and the old conversation, the Spaniards emerged three times more bikes unless the entrepreneur has the business skills fluent in English. to exploit a commercial opportunity. That is where Neither one-to-one conversation classes nor residen- management education can come in. In fact, it is often tial language courses were new: the program’s original- MBAs who take the reins of entrepreneurial projects, ity lay in combining the two. according to Mathieu Carenzo, director of IESE’s 14 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE start-ups can afford to hire specialized finance, marke- ting, HR or production staff. Josep Ll. Sanfeliu (Global Executive MBA ’06) is another alum who noted the benefit. “An MBA program is crucial for entrepreneurship because it allows you to gain knowledge and experience in concepts that you are familiar but not entirely comfortable with. It gives you the self-confidence to launch a new venture,” he said. Sanfeliu and his partners formerly launched Ysios Capital Partners, a venture capital fund of €70 million focused on the biotech, pharmaceutical and medical technology sectors, in 2008. “In this respect, IESE’s focus on general management is an advantage,” said Prof. Oosterveld, himself a former intrapreneur at Philips, an investor and graduate of the MBA class of ‘72. At Philips, Oosterveld headed up the division that commercialized the technology behind the CD-ROM and DVD. Indeed, let’s not forget that entrepreneurial skills and business models are currently much in demand among established companies. Increasingly, em- ployees engaged in a special project within a larger firm are supposed to behave as entrepreneurs, even though they have the much larger resources and capabilities of the company to draw upon. This practice, dubbed “intrapreneurship,” is most widespread among firms that use or produce innovative products or services and are actively in- volved in research and development. However, as the need for innovation intensifies across all sectors, many established companies are beginning to recog- nize the need for intrapreneurial solutions. Some com- panies, such as 3M and Intel, even give their employees certain freedom to develop their own projects and then provide them with the funds to use for these projects. DAMAGE LIMITATION Francísco Martín, founder of Optenet, a global IT lcompany, says that his experience of entrepreneur- ship contradicts the myth that portrays the typical en- trepreneur as a swashbuckling serial risk-taker. “In my opinion, an entrepreneur should strike a balance between taking risks and playing it safe,” he said. “On the one hand, an entrepreneur should base his or her decisions on a profound knowledge of the market in order to mini- mize risks… On the other hand, it is impossible to be 100 percent sure of what is going to happen next.” Center for Family-Owned Business and Entrepreneur- Rob Johnson, a visiting professor in the Department ship (CEFIE). of Entrepreneurship, agreed. “There is a common mis- conception that entrepreneurs are big risk-takers, al- LEARNING TO MANAGE most like gamblers. What distinguishes entrepreneurs Richard Vaughan of Vaughan Systems agreed with is their ability to mitigate risks so that they narrow the lCarenzo’s comments. He said that successfully com- risks down to two or three elements that will make or pleting the rigorous Executive MBA program convinced break a business,” he said. him that he could accomplish anything he put his mind Johnson speaks from experience: before teaching, he to. And secondly, the modules on accountancy and con- and his business partner successfully launched and sold trol gave him agility with balance sheets, enabling him to their company, which was focused on the information quickly calculate an idea’s financial viability. industry just as the commercial importance of that sec- This is another important aspect of entrepreneurialism tor was coming to the fore. He continues to support new that is supported by IESE’s programs. Entrepreneurs, enterprises as a venture capital investor. almost by definition, need to be general managers: few Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 15 I D E A S FIGURE 1. THE ENTREPRENEUR: INSIDE OUT The Concentric Capabilities and Attitudes lRequired for Entrepreneurship OPERATING ENVIRONMENT neurs are 35 years old and upward, according to Prof. Tony As a successful venture capital investor and entre- Dávila of the Department of Entrepreneurship. lpreneur, Johnson knows first-hand that launching “With over 10 years of work experience, you’re so your own enterprise means accepting a high possibility much better prepared,” Joëlle Frijters (Global Execu- of failure. On top of that, the entrepreneur’s sensitivity tive MBA ‘08) said. Frijter’s company, Improve Digital, toward failure may be compounded by the culture of the provides advertising optimization technology to major country he or she is operating in. online publishers, including BBC Worldwide and Reu- While faculty accept that cultural norms in individual ters. “You have more visions (with more context), you countries can impede entrepreneurialism, the majority have a better network, you are able to move things from A felt that the myth of the failed entrepreneur as social out- to B faster and convince others to come along with you,” cast is overdone. Prof. Nueno believes that attitudes are she said. changing. “If an MBA in the ‘70s launched a company that On top of that, it can be a long, hard slog and could take failed it would be perceived badly,” he said. “But nowadays years before your work comes to fruition. “It’s never a quick it’s diff erent: people think, ‘he’s worked hard, done his best buck,” Prof. Oosterveld said. “It’s like growing a plant, you … he’ll have learned something from the experience.’” water it for days and weeks and months before it blooms By any means, such attitudes tend to be limited to the and, even then, the rabbits could come and eat it and you “uninitiated” outside the world of entrepreneurialism, have to start over from zero,” he said. according to Mathieu Carenzo of CEFIE. The center Hans Cool (MBA ’03) knows this from personal experi- runs a range of networking and matchmaking events on ence. His company, Alucha, develops innovative recycling campus to bring together entrepreneurs and business technologies. One such application can recycle the thin lay- angels in IESE’s Private Investors Network. ers of aluminum and plastic that make up Tetra Brik con- “Within the ecosystem of entrepreneurialism, they tainers, along with carton board. Tetra Brik is notoriously [investors, business angels and venture capitalists] val- hard to recycle. ue the experience gained through failure and are willing The idea of marketing this technology was born in Prof. to invest in that person again,” he said. Nueno’s entrepreneurship class in the MBA program. Al- most six years later, the Nordic forest products multina- BUILD ON EXPERIENCE tional, Stora Enso, is currently building a €6 million instal- Experience, of course, is only acquired over time - which lation based on Alucha’s technology at its paper mill outside lshoots holes in the myth of entrepreneurialism being Barcelona. The plant is due to start operations at the end of exclusively a young person’s game. In fact, most entrepre- this year. 16 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE A me mber of th twork e Wells Fargo Global Broker Ne “We have been developing global insurance programmes for our clients for more than a century. We use our expertise to keep your company at ease managing risks and protecting your investments all around the world.” — Amadeu Jori President of Jori Armengol & Asociados Global insurance programmes that guarantee the best coverage and conditions to companies around the world Planning, implementation and management of investment Barcelona programmes around the world for international companies S. Roger de Lluria 124, 3º 2ª (08037 Barcelona) P. 0034 934 763 350 F. 0034 934 579 480 Planning, implementation and management E. [email protected] of global investment programmes Madrid Coverage improvement and constant updating S. Conde de Aranda 20, 5º izq. (28001 Madrid) Accidents & Claims Management around the world P. 0034 917 814 650 F. 0034 915 751 511 E. [email protected] Insurance Audit Risk Management Feasibility Study & Captive Management Wells Fargo Global Broker Network Periodical Updates & Statistics Global Vision. Local Focus. I D E A S MAKE YOUR OWN LUCK EXPERIENCE IS ONLY But perhaps the most pervasive myth of entrepre- lneurialism, discredited to a greater or lesser degree ACQUIRED OVER by most of the faculty members and entrepreneur alum- ni, is that of luck. Prof. Rob Johnson echoed the opin- TIME, WHICH SHOOTS ion of many alumni by quoting golfer Gary Player, “The more I practice, the luckier I get.” HOLES IN THE MYTH OF When it comes to crafting an entrepreneurial oppor- tunity, there is no substitute for sheer effort and bloody- ENTREPRENEURIALISM mindedness. “Luck can play a role and I have seen some examples of that,” Improve Digital’s Frijters said. “But BEING EXCLUSIVELY A never without really hard work and determination,” she said. Another group said that it is not that entrepreneurs YOUNG PERSON’S GAME. catch a lucky break, but rather that they grab chances that others let slide by. “Pure luck does not exist,” Vaughan of Vaughan Systems said. “Successful entrepreneurs open the door every time opportunity knocks. Most people ADVICE don’t even hear the knock,” he said. FROM THE TRENCHES WANTED: ENTREPRENEURIAL SOLUTIONS 1. JUST DO IT 4. KEEP With the global financial system still recovering lfrom the crisis, some would argue against embark- “Step away from the THE FAITH ing on a new venture at the moment. But while financing whiteboard, stop “A strong belief in your may be thinner on the ground, opportunities are likely to brainstorming, stop idea is very important. crop up as companies outsource services to save costs or planning and start We have been working retrench and focus on core strategy. selling. When in doubt, on our fi rst project for Moreover, others suggest that the crisis has left the get the product into the over fi ve years and have world in greater need of entrepreneurs than ever. “The market and try to get overcome many barriers problems we are undergoing right now won’t be solved by paid for it.” during that time.” major corporations,” CEFIE’s director Mathieu Caren- Evan Powell (Global Hans Cool (MBA ’03) zo said. “Mass employment brought by mass industrial- Executive MBA ’08) Alucha ization got us out of the depression. That will be the case Nexenta with this crisis,” he said. 5. AGE By any means, as Prof. Christoph Zott points out, 2. BIGGER THAN BRINGS “Research into job creation shows that jobs are not cre- YOUR BOOTS ated by large multinationals; large multinationals tend EXPERIENCE to restructure and shed jobs. It’s the small companies “In the fi rst year, you “I was 24 when I that create jobs.” Despite the high profile of large en- need to act bigger than launched my company. trepreneurial companies such as Microsoft and Inditex, you are and also invest However, my true lots of entrepreneurial companies are SMEs. in that. Large companies entrepreneurial spirit Instead, it is entrepreneurs who are best suited to grab don’t want to work with surfaced much later, at opportunities in today’s shifting environment. “The re- small unstable start-ups.” age 48.” cession has brought about a sea change in the world and Joëlle Frijters, (Global Richard Vaughan is accelerating the shift from old, heavy industry to clean Executive MBA ’08) (Executive MBA ’86) industry,” Prof. Oosterveld explained. “These sectors Improve Digital Vaughan Systems lend themselves to entrepreneurialism.” Just as the digital world emerged from the early 1990s’ 3. WORK IT banking crisis, Dean Jordi Canals believes we are go- ing to see something similar in areas such as clean en- “There are many ergy, health care, life sciences and education. “Despite opportunities out there the uncertainty, now is also the best of times,” the dean that people pick up on. told the IESE MBA graduating class of 2009 on April 30. The difference is that “It’s an ideal time for MBA graduates to bring their en- the entrepreneur turns trepreneurial spirit to fruition.” The same is true of IESE that opportunity into a graduates of all ages. business by sheer hard work.” Javier Lluch (MBA ’99) Impact Media 18 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE I D E A S ENTREPRENEURSHIP ARCHITECTS OF THE FUTURE JULIA conomist Joseph PRATS Schumpeter used Professor of to say that entre- Entrepreneurship, IESE preneurs are the Business School architects of the fu- ture. It comes as no IESE Prof. Julia Prats E surprise, therefore, has edited this special that entrepreneurs now play a leading role in the cur- edition of the magazine on rent economic environment, where entrepreneurship, which the future is somewhat uncertain. And when I say “entrepreneur,” I includes some of the latest don’t mean the lonely, mad genius ideas from IESE’s professors whose only objective is to take his or her project to fruition regardless of entrepreneurship as of everything and everyone else, a ste- reotype which has caused great dam- well as the perspectives of age to entrepreneurship. many entrepreneurs and An entrepreneur is someone who intrapreneurs from among creates a company, but so are those our Alumni. who find new ways of doing old tasks or develop new busi- ness models for the company that employs them. In other words, entrepreneurs are those who can create a future for any business – even when the business isn’t theirs – in a way which is innova- tive, groundbreaking and sometimes even counterintuitive. Ferran Adrià and Juli Soler at El Bulli; Steve Jobs at Apple; Amancio Ortega at Inditex; Muhammad Yu- nus at Grameen Bank, and Jeff Bezos at Amazon are all architects of the future. They are only a few examples of famous entrepreneurs. If we were ENTREPRENEURSHIP • INNOVATION AND to list everyone who has been an en- CHANGE trepreneur over the last decade, the 20 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE list would be virtually infinite, but at IESE’s Department of Entrepre- not all the names would be as well neurship have one thing in common: AN ENTRE- known. We would also find people innovative leaders who are capable like 22-year-old Carlos Oliveira, who of bringing the best out of those PRENEUR IS founded a mobile solutions company around them. in Braga, Portugal and sold it to Mi- SOMEONE WHO crosoft in 2007. This was the first Finally, another common mistake is acquisition of its kind in Europe. Or to think that starting a new project is a CREATES A Eivind Bergnsmyr, a Norwegian en- linear process, when in fact all launch- gineer who joined a company which es and growth paths have ups and COMPANY, BUT was developing a cutting-edge noise- downs and require knowledge of how canceling product that allows for to manage crises, which can appear at SO ARE THOSE perfect communication. Eivind felt any time. That is why it is important so identified with the company that to quickly identify possible misalign- WHO FIND NEW he gave it his all to be able to launch ments, have safety nets in place and a the product, even when everything “parachute” which can break the fall. pointed to failure. That product to- Those who have successfully over- WAYS OF DOING day is an absolute must for over 20 come such obstacles show very similar countries’ armies, including the behavior: they are open to change and OLD TASKS. U.S.’s. Many more unknown people to quickly modifying any elements would appear on the list, people who needed for survival, they are strongly have reinvented the future for their determined to take the company for- companies, their employees and ward and they are quick decision mak- their families; people who, despite ers. They get it right because they have not appearing in the press, have had surrounded themselves by the right no small impact on the economy and team and are prepared to explore new on society at large. paths or to start again from scratch whenever necessary. FALSE DILEMMAS “The people who get on in this We have analyzed in this article lworld are the people who get up the myths that are usually associat- and look for the circumstances they ed with entrepreneurship and which want, and if they can’t find them, sadly impoverish an area which is make them.” actually a source of enrichment for society as a whole. We need to regain George Bernard Shaw’s words sum- the excitement of working hard and marize the entrepreneurial spirit we the idea that people reap what they promote here at IESE. In fact, the idea sow. The reward need not be only fi- that good opportunities do not exist nancial, as there is also satisfaction but are created is confi rmed by all in creating something new and see- the stories of entrepreneurial ini- ing it grow, or in managing to revive tiatives we know. Félix Revuelta, something which seemed doomed founder and presi- to disappear. There are no magic for- dent of Naturhouse, mulas for successful entrepreneur- built an opportunity ship, but we have found that certain from a change in the behavior is common to all those who food and dieting in- have decided to be entrepreneurs, dustry. Faced with market liber- either on their own or for others. alization, Revuelta came up with an innovative business model and In this edition of the IESE Alumni a highly competitive franchise mod- Magazine we feature the stories of el with which he has achieved rapid various entrepreneurs who have growth, with an average annual growth studied at IESE, and we publish sev- rate of 45 percent since 1999. eral articles by members of IESE’s Entrepreneurship Department. The Another widespread but mis- goal of this special report is to dispel taken notion is that being an en- misconceptions about something as trepreneur “is only for geniuses real as entrepreneurship, and to un- and people with luck,” when the key derscore that being an entrepreneur to entrepreneurship is in innova- is all about hard work and willpower, tion and, above all, effort and per- not something people are either born sistence. All the cases we have come with or not. We challenge you to dis- across through our research projects cover the entrepreneur inside you. Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 21 I D E A S THE CHALLENGE OF GROWTH GOING BEYOND 80 ANTONIO etting up new businesses transition point. The managing director DÁVILA with real opportunities is a great visionary – the company was his Professor of Accountancy for success is no easy task. brainchild, after all – and a great salesman and Control, IESE Business But even with an attrac- – most of the company’s sales up to now School tive and profitable busi- have been a result of his persistence and ness already in place, the hard work. But his big challenge now is to There is a widely-held belief Snext step - that of trans- create a team that will allow the compa- that the comparatively forming oneself from an ny to grow beyond the seventy employ- entrepreneur into a manager - is just as ees it currently has. For him, growth has sluggish rate of new tough. The transition from a “good busi- always meant more time with clients and business creation in Europe ness” to a “good company” takes place more pressure within the organization at some point when it has between 50 to sell. And the management team has is the result of a lack of and 100 employees. When a business always consisted of him and three other entrepreneurial zeal. In his has fewer than 80 employees (to take an trusted colleagues. intermediary point between 50 and 100) latest study, Prof. Antonio the entrepreneur can handle everything THE ABILITY TO GROW himself. All decisions come through The issue of how best to approach Dávila challenges this him and he knows what’s going on in lthis transition is particularly perti- myth by casting light on every corner of the organization. There nent with respect to European compa- is no need to know the intricate ins and nies. There is a widely-held belief that the importance of building outs of business management; a good Europe suff ers from a lack of “entrepre- a solid management idea, some charisma and a bit of com- neurial spirit,” which is nothing more mon sense is enough. The big challenge than a reflection of its supposed lack infrastructure during the is to grow beyond 80 employees. At this of “innovative spirit.” It is true that an transition from a “good point the company cannot grow based excess of red tape and the social stigma only on good intentions. It needs good of failure, a key risk faced by entrepre- business” to a “good managers. neurs, may go some way to explaining company.” the slower rate of new business creation A good example of this is a company in Europe, especially relative to the U.S. set up in June 2003 in Silicon Valley Nonetheless, I often encounter people which I have had the opportunity to with ideas who set up new businesses work with and have followed closely. here with the same entrepreneurial The basic business idea is great. It wants zeal I have seen in Silicon Valley. Maybe to be, and is fast on its way to becom- there aren’t as many, but there are still ing, a leading player within the world of quite a few. high-tech industry – establishing itself in the meantime as a benchmark for many The slower rate of business cre- within the sector, from startups, venture ation in Europe is often put down to capital and medium capitalization com- a lesser desire among Europeans to LEADERSHIP AND PEOPLE MANAGEMENT • DECISIONS ANALYSIS • STRATEGIC MANAGEMENT • panies to large multinationals. The com- create new enterprises. While there ENTREPRENEURSHIP • INNOVATION AND CHANGE pany has been growing strongly for the may be an element of truth in this, last three years but has now reached the the real source of the problem has 22 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE THE TRANSITION FROM A “GOOD BUSINESS” TO A “GOOD COMPANY” TAKES PLACE AT SOME POINT WHEN IT HAS BETWEEN 50 AND 100 EMPLOYEES. Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 23 I D E A S more to do with the “ability to grow” nance department, a sales director to a business and create a real company, set up a sales team, a human resources i.e., with managers to manage it. In director who understands the meaning many businesses, the curb to growth of a person’s professional career. And isn’t the viability of the business plan, it also means adopting management or the lack of funds; it’s the inherent tools – from setting up a simple budget shortage of professional manage- to the design of the sales process or new ment. We are all familiar with compa- product development. nies, in many cases family-run busi- nesses, that reach the magic number A BIT OF RESEARCH of 80 employees and stop growing. These thoughts were running There are also countless cases of new, lround inside our heads for quite a very promising businesses that, once while until we decided to do what aca- they have reached this ceiling, remain demics do best: research. We launched just that: a promising business. a project to study 78 newly created Silicon Valley companies (with an So, what goes wrong? Many entre- average age of just over 5 years) that preneurs will say that the business is employ more than 50 employees. We profitable enough so what’s the point devoted a great deal of time to each in growing further? Sometimes entre- company, talked to various managers preneurs are afraid to leave their region and gathered details of their history, - the environment which they know and such as the growth in the number of in which they feel most comfortable. employees, sales, profits, investors On other occasions, growth represents and the adoption of professional man- more work (which is true since the num- agement tools – from budgeting, sales ber of contacts doesn’t grow in lineal processes and alliances to product fashion but exponentially with the rise development, financial analysis and in the number of employees). The fact people management. is that the management model beyond 80 is diff erent. The “under 80” manage- The results were conclusive. The ment model is not “scaleable”, that is to companies which grew most rapidly say, you can’t carry on doing were those that had devoted time to the same thing just on a big- creating a “management infrastruc- PERCENTAGE OF FOUNDERS ger scale and at a faster rate. ture,” that is to say, management REPLACED AS MANAGERS If everything that goes on in tools. Because of the geographical the organization has to go region and the selection criteria – through the entrepreneur, high-growth companies – many of the 60 more growth means more companies in the sample were at least hours of work and more partly backed by venture capital. And 50 headaches, while expand- if there’s one thing that venture capi- 40 ing to other regions means tal investors prioritize above all else, more travel. it’s growth. 30 20 As soon as a company’s If an entrepreneur isn’t able to workforce exceeds 80 make the company grow, the manage- 10 employees, management ment board (on which the investors must be professionalized. sit) will quickly replace the entrepre- 0 GROUP 1 GROUP 2 GROUP 3 This means that you have neur –moving them to another de- HIGHER LOWER to delegate and use man- partment such as R&D, or otherwise INTENSITY INTENSITY agement tools. If this isn’t suggesting that they find new ideas done, the company has no and create another company (out- FIGURE 1 means of growing and the side the existing one). As a result, in “entrepreneurial spirit” our sample of companies we see quite remains just that, an allusion a high rate of turnover at the head of to what could have been but isn’t. Pro- the organization. To see if this theory fessionalizing management requires a about professionalizing the company sea change in attitude and moving from made sense, we looked at the level of thinking of the company as a personal development of management tools business to understanding it as an or- after one year, two years and three ganization. It means hiring people with years of the company’s existence and the skills and experience to “create” an the probability of the managing di- organization. It means hiring special- rector being replaced. Figure 1 shows ists – a fi nance director to set up a fi - this probability in relation to the de- 24 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE velopment of management tools. The These directors know how to “cre- figure suggests (and it’s statistically ate a company” as well as hire the right relevant) that the lower the level of people with the necessary manage- management development, the high- ment tools. One of the companies in er the probability of replacement. the sample needed to structure its product-development process. Instead We did something similar in Figure of going through the motions and wait- 2. We grouped the companies dur- ing for a fault to occur (as happens more ing the second year into three groups and more frequently as the “team” be- based on their level of management comes unmanageable with growth) development and looked at how they to force them to restructure grew. Once again, more development the process, the managing invariably means greater growth. director hired someone who had been respon- LEVEL OF DEVELOPMENT The conclusion is clear: manage- sible for product develop- GROWTH ment does not destroy the entrepre- ment at Intel. This person neurial spirit as is so often argued. brought with them all the EMPLOYEES On the contrary, management en- necessary experience and 160 ables the entrepreneurial company to expertise to oversee such grow. Therefore, contrary to popular a crucial area. Something 140 belief, lack of growth isn’t due to a lack similar happened in other 120 of ideas (or a market), but rather to a companies with regard to lack of management know-how. Of fi nancial management – in- 100 course, it is true that too many man- stead of improvising ways 80 agement tools can lead to increasing of budgeting, measuring bureaucracy and smother innovation. profitability and present- 60 ing reliable financial data But none of the 78 companies we stud- 40 ied had that problem. The most com- to the board, experienced mon problem was the opposite: a lack managing directors hired 20 of management. experienced fi nance direc- 0 AGE tors who had invaluable 1 234(YEARS) ENTREPRENEURS AND MANAGERS knowledge of best accoun- A close look at the level of mana- tancy practices. HIGHER INTENSITY lgement turnover at these high- MEDIUM INTENSITY growth companies raises several inter- Perhaps the company LOWER INTENSITY esting points. A good entrepreneur is that best understood not necessarily a good manager. What the need to structure the FIGURE 2 is valued in an entrepreneur is the abi- business in order to grow lity to create, to take an idea to market; was Siebel Systems. This in a manager, on the other hand, it is the company, founded in 1993, ability to grow, to lead a team to gene- reached a billion dollars in sales and rate ideas. One is a creator of products 8,000 employees in seven years – and markets; the other is a creator of something previously unheard of in companies. The former enjoys uncer- the software industry. Microsoft took tainty, novelty; the manager likes ha- almost 15 years to reach that size and ving a platform on which to grow. Oracle took 13 years. Tom Siebel, the founder and managing director (an Creating companies not only re- entrepreneur with the skills of a man- quires entrepreneurs. It also requires ager), had worked at Oracle for many managers – people who turn business- years before focusing on new compa- es into companies which grow beyond nies. Indeed, Siebel Systems was a big those 80 employees. Such managers company from its very inception – the are a scarce resource that must be fi ve employees all wore suits (unusual created; they are even harder to fi nd in Silicon Valley) and behaved as if the than entrepreneurs. They are people company were already a large multina- with experience in large companies – tional. Management tools were always which is why one of the functions of ahead of growth. The discipline which large companies in a country is to cre- led this company to the top (and to ate managers – and who know how to leave in the dust many other companies create a management infrastructure. which were set up at the same time but But they must also have the motiva- which never grew) was the seed of the tion and desire to work in a “small” problems it would experience ten years company. later – but that’s another story. Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 25 I D E A S THE IMPORTANCE OF INNOVATION ENTREPRENEURING TOWARDS 2020 PEDRO NUENO he phenomenon of en- tical, but the rate of innovation pumped Professor of Entrepreneurship and Holder of the Beltran trepreneurship also in since they were launched for mass Chair of Entrepreneurship, seems to go through consumption, some 20 years ago, has IESE Business School cycles. The 80s was a been spectacular and has created incal- time of restructuring culable wealth. Just think how frustrat- As the global economy and fi nancial inventions, ing it must be for those who predicted Tbut not much new entre- for 60 years that the 50-kg contraption, begins to slowly pick itself preneurial wealth. In the if properly developed, would have huge up again following one of the 90s, on the other hand, we fell over our- potential, only to have the management selves turning innovations into compa- board tell them to shelve it. most serious economic crises nies and creating new business sectors, in generations, concerns such as cell phones and the Internet, But let’s look at another example. which have transformed our society. Most carmakers have announced the abound about the health of In the present decade we have once launch of electric cars for the beginning again turned our attention to fi nancial of the next decade. Several have already business innovation. IESE restructuring and innovation, and we unveiled prototypes of the vehicle they Prof. Pedro Nueno shares may well, as a consequence, end up with intend to launch and are excited at the fewer companies than we started with. prospects of this market segment. But his views on post-crisis some 20 years ago Honda won a race innovation, identifying But all that is about to change. Al- for electric cars in Phoenix by stay- low me to make a prediction. There is ing ahead for 200 kilometers without some important reasons for a huge amount of innovation going on recharging. Renault announced the optimism. in companies. The problem is that it’s electric Zoom, Fiat the Downtown and not being transformed – quite deliber- Chrysler the TEVan, while at Ford they ately – into business. There are also a had been working on electric models lot of innovative ideas forming in the since the 1960s. Research into hybrids heads of executives, scientists, doctors peaked between 1978 and 1984. In that and professionals from all industries. 6-year period automotive companies Unfortunately, these people are not whose management boards had not yet suffi ciently interested in taking the big approved their hybrid prototype were leap, nor can they see much in their sur- getting nervous. roundings to encourage them to do so. So why have management boards I’ll try and give some examples of chosen now to launch electrics and what I mean. Ericsson set up a labora- hybrids? Whatever the reason, it’s a tory in the 1920s to develop wireless welcome development which should mobile phones. It went on to produce raise a host of new opportunities. By a few models for very special applica- a strange twist of fate, just at the time tions such as the military and mining, Warren Buffet was buying a share of but most of their telephone business fo- Chinese car company BYD, precisely cused on the development and deploy- because of its advanced position in ment of wired telephony worldwide; electric and hybrid cars, I was over Ericsson even got into the cable manu- there writing a case study about its facturing business. Just imagine devel- entrepreneurial chairman and major oping a 50-kg cell phone and having the shareholder, Wang Chuangfu. As Mr. management board tell you for 60 years Wang showed me his hybrid and elec- that it has no future. Admittedly, the tric prototypes, he told me that he also INNOVATION AND CHANGE • ENTREPRENEURSHIP fi rst cell phones were not all that prac- expected to sell lots of conventional 26 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE vehicles in the future. We are looking Africa. As a professor of entrepreneur- ahead, then, to a decade in which such ship at IESE, I guess I have received THERE IS A an important economic sector as the over 50 business plans so far this year automotive industry will witness a from entrepreneurial alumni plan- HUGE AMOUNT huge amount of applied innovation, ning initiatives in Asia and Africa. This with everything that this implies for is probably twice as many as the same OF INNOVATION the creation of entrepreneurial oppor- period a year ago, for a comparable tunities in a huge number of areas. number of projects. Colleagues from GOING ON IN other business schools report similar But if we look at another essential in- experiences. COMPANIES. dustry such as healthcare, seldom has applied innovation been so strong as All this leads me to think that the THE PROBLEM it is at the present time. Being a mem- time is right to take innovation out of ber of the Jury of the Wall Street Jour- the closet and into the market. But I un- nal’s Technology Innovation Awards derstand the market is the whole world. IS THAT IT’S keeps me very busy in August. Each of This means the management board has the projects presented by the compet- to be proactive, to truly lead. And for NOT BEING ing companies must be analyzed and this to happen, they have to get excited. ranked. But it gave me great pleasure It’s sometimes a good thing to surround TRANSFORMED this year to see that there have rarely yourself with people who see the bright been so many new products and ser- side of things, though it must, of course, INTO BUSINESS. vices pushing strongly into the mar- be from a realistic perspective. ket with potential sales of billions of euros, which will certainly bring with To fi nish on a slightly diff erent note, them limitless new opportunities for here’s another prediction. The 2010 supply, distribution and other related decade will be great, but what about functions. the 2019 crisis? As we take advantage of this time of opportunity, remember However, as we look forward to the that there are cycles. In this business 2010s, we can see a strong Asia, with world there is that nagging financial China and India and 2.4 billion consum- reality they call a balance sheet, and in ers on the fast track to growth. We can terms of the care it requires it is second also see entrepreneurial companies only to people. beginning to create opportunities in Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 27 I D E A S NEW CHALLENGES ENTREPRENEURSHIP: FOUR BIG QUESTIONS JUAN IS AN ENTREPRENEUR WHERE ARE THE OPPORTUNI- ROURE MADE OR BORN? TIES AND HOW SHOULD THEY BE Professor of Entrepreneurs may well possess FOCUSED UPON? Entrepreneurship, IESE lcertain innate qualities that en- There are various myths Business School hance their development. But it’s l regarding opportu- also true that there are a number of nities. One myth is that Entrepreneurship is more common variables related to the en- they are found in rapidly relevant than ever. Many vironment, internal company charac- growing emerging sectors teristics and the profile of entrepre- that are currently in vogue. In see it as the only way to put neurs, themselves, that are crucial for reality, winning entrepreneurial the current crisis behind us entrepreneurship to flourish. teams can be found in many sectors and they tend to focus sharply on tho- and move towards better In short, although there may be se activities that they know well. times. Professor Roure some inborn qualities that make for a successful entrepreneur, there are Another myth associated with refl ects on four key aspects also decisive conditions which can be launching a new venture is that you nurtured to create a fertile breeding must have a singular, brilliant idea of the process. ground for entrepreneurial activity. and stick with that. Again, in reality, entrepreneurs identify, copy and There are entrepreneurs of all ages buy viable ideas that others and walks of life. Many home busi- can develop. Finally, there is nesses have achieved exceptional the trap of the large market. levels of success. Their journey has Many entrepreneurs fall into been long and difficult, and their this one. They erroneously founders’ healthy ambition and de- assume that “their market” sire to grow at all times seem to play is vast, homogeneous and mea- a vital role. The ambition to create a surable and so they focus on company appears to be influenced by reaching a small part of this large a range of factors such as opportuni- market. Falling into this trap leads ties and resources, as well as by avail- to a huge oversight since, in defining able means. your target market, you will have ignored the expectations and prefe- However, regardless of the oppor- rences of customers in relation with tunities and resources available, if the business proposition, along with there is no ambition, the project can- potential opportunities that could not develop and grow. The ability of come from diversified demand. the entrepreneur and his or her team to build an entrepreneurial culture – One way of avoiding this trap is to as part of an ambitious vision of the identify or create “gaps” inside the large project - focused on opportunities market where you can play a signifi cant ENTREPRENEURSHIP • DECISIONS ANALYSIS • and growth comes into play quite role, and where potential clients appre- INNOVATION AND CHANGE naturally at this stage. ciate to a greater extent the value propo- 28 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE ENTREPRE- NEURSHIP CAN BE UNDERSTOOD AS A PROCESS OF EXPLOITING KNOWLEDGE IN THE MARKET PLACE. OCTOBER–DECEMBER 2009 / No. 115 29 I D E A S sition of your project. This helps clearly In contrast, in Europe the dominant THIS PERIOD OF define your activity, businesss model, cultural and social values regarding product and service, as well as introduce the pursuit of opportunity and entre- ECONOMIC and defi ne your value proposition. preneurship continue to fuel negative attitudes towards failure, which af- RECESSION HAS Given that we are talking about com- fects all facets of risk management and panies in the launch phase, credibility its consequences. In the U.S., the “best LED TO A NEW in the eyes of possible customers or in- and brightest” generally welcome the vestors is a crucial factor. Particularly idea of becoming entrepreneurs. Here, GENERATION in the initial stages of the project, the everything is a bit more complicated business proposition should center on because there is no culture of entre- OF ENTREPRE- the client more than the market. To ca- preneurial support, either in the fam- rry this out, it is critical to defi ne where ily, at school or at university. Also, the NEURS. one wants to go (segment identifi ca- time needed to register a company or a tion) and where one wants to operate patent is still considerably longer than (segment prioritization). The third in the United States. We must be able to link consists of “concentrating on the tackle the stigma of failure in Europe. It focus,” that is, selecting the segment is one of the key challenges we have to that the fi rm will center its value propo- overcome if we are to compete success- sition upon once the project has been fully on a global scale. Failure is part of launched. the entrepreneurial and innovation culture. Accepting it can only make us stronger, not weaker. IS THERE A SOCIAL MODEL THAT FOSTERS MORE ARE ENTREPRENEURS AND BETTER IN CRISIS DURING TIMES ENTREPRENEURS? OF CRISIS? A high level of entrepreneurial ac- This period of economic reces- ltivity in a country or region is linked lsion has led to a new generation to a high rate of business creation, large of entrepreneurs. For example, if we numbers of emerging entrepreneurs look at the 50 projects that have been and high business turnover. According presented in the eight Business Angels to reports by the Global Entrepreneur- and Family Offi ces Network forums in ship Monitor, entrepreneurial activity the past year, we will see that the quality in Spain is about average for European of business plans has increased signifi - countries, although we lag far behind cantly. This may refl ect to some extent countries like Brazil, China and the how the economic crisis is generating a United States, which are renowned for wave of entrepreneurial initiatives. their high index of entrepreneurial ac- tivity. The most innovative countries in For many in professional fi elds, en- the European Union are the northern trepreneurship is also a window of op- economies: Finland, Sweden, Den- portunity which would not be possible mark, the Netherlands and the United by means of a standard job. In practice, Kingdom. looking beyond the economic cycle, the current economic reality is that we live It is diffi cult to ascertain the causes in an “economy of entrepreneurs” who for low entrepreneurial and innovative come in all shapes and sizes. These in- activity in a country or region. We can clude visionaries that start out in their explain it in terms of the degree of citi- garage, people with experience in the zens’ aversion to economic or fi nancial ‘real’ business world who launch a ‘vir- risk and the consequent stigma associ- tual’ platform off ering something that ated with failure. However, the fact that is attractive and beats anything on off er Europe lags behind the U.S. in this re- even in the real world, and entrepre- gard is an indisputable fact. The emer- neurs who buy up fl oundering compa- gence of the so-called “entrepreneurial nies with the goal of creating their own. model” in the U.S. has been associated with the existence of a highly com- It is very diffi cult – if not impossible petitive environment resulting from a – to return to pre-crisis conditions, large market, a limited role of govern- which is why it’s so important not only ment in the economy, access to capital, to understand what is happening, but availability of technology and, perhaps to seize the opportunities that emerge, most signifi cantly, the establishment here and elsewhere in the world. Entre- of a strong entrepreneurial culture. preneurship is the key. 30 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE The design principle for the Sydney Opera House revealed itself just after lunch. Applying expertise to insight benefits us all The inspiration is everywhere. Moving Ideas Forward. ricoh-europe.com Office Solutions Production Printing Managed Print Services I D E A S BUSINESS MODEL INNOVATION CREATING VALUE IN TIMES OF CHANGE CHRISTOPH ZOTT veryone seeks to in- Third, because business-model in- Professor of novate in order to novation can be such a potentially Entrepreneurship, IESE maximize revenues powerful competitive tool, manag- Business School and margins. How- ers must be aware of competitors’ ever, this usually efforts in this area. requires significant RAPHAEL AMIT investment: innova- DEFINING A BUSINESS MODEL Professor of Entrepreneur- E ship, The Wharton School, tion is usually cost- We define a business model as University of Pennsylvania ly, time-consuming and is not guar- l the way your company “does anteed to be successful. business” with its customers, part- ners and vendors. That is, the sys- Is there a way for managers to tem of specific activities that are The innovation of business innovate in their existing markets conducted by the focal firm or by models is a highly powerful with their existing products by uti- its partners to satisfy the perceived lizing their existing resources and needs of the market; how these ac- tool that can be leveraged capabilities in novel ways? Could tivities are linked to each other; and by intrapreneurs. Innovating they extract more value from their who conducts these activities. firms’ existing resources, and if so in terms of business models how? This question is easier to an- To illustrate the concept of busi- is the best way to achieve swer than it appears. Creating a new ness-model innovation, consider business model can pave the way for the case of Apple. The company sustainable competitive a new form of innovation. had been focused on the produc- tion of innovative hardware such as advantage. Managers and entrepreneurs personal computers. Through the (and academics) should care about development of the iPod and the as- business-model innovation for sev- sociated music download business eral reasons. First, it represents an iTunes, Apple was the first electron- often overlooked (and hence under- ics company that included music utilized) source of future income distribution as an activity, linking it for their business, an opportunity to the development of the iPod hard- to create new business or enhanced ware and software. Apple thereby revenues and profits at relatively pushed many subactivities of legal low cost. Second, these economic music downloads to its customers, advantages could translate into a thus avoiding or reducing additional sustainable performance advantage, costs for the firm, while offering a given that competitors might find it new service. That is, Apple did not difficult to imitate and/or replicate just bring a new hardware product an entire novel activity system (as to the market; rather, it radically opposed to copying a single novel transformed its business model to product or process, which often include an ongoing relationship undermines and erodes the returns with its hardware customers (simi- INNOVATION AND CHANGE • ENTREPRENEURSHIP from that product or process). lar to the “razor and blade” model 32 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE BUSINESS MODEL INNOVATION REPRESENTS AN OFTEN OVERLOOKED SOURCE OF FUTURE INCOME. Alumni Magazine IESE OCTOBER–DECEMBEROCTOBER–DECEMBER 2009 2009 / /No. N° 115 33 I D E A S of companies such as Gillette) and have facilitated new types of technol- thereby enhancing its revenue and ogy-mediated interactions between preserving profit margins. Apple economic agents. These develop- has thus expanded the locus of its ments have enabled fi rms to change innovation from the product space fundamentally the ways they “do busi- to the business model. ness;” namely, the ways they organize and conduct exchanges and activities Another example is the fashion across fi rm and industry boundaries retailer Inditex. The firm has made with customers, vendors, partners and business-model thinking other stakeholders. In other words, a corporate priority and these developments have increased WHY INNOVATE IN YOUR their annual report be- fi rms’ possibilities of purposeful net- gins by explaining the In- working, that is, of structuring their BUSINESS MODEL? ditex business model and destiny within the context of the KEYS FOR COMPETITIVENESS highlighting its innova- value networks within which they ex- tive elements. Inditex has ist. Senior managers of focal fi rms It represents a source of future income which is made many choices that, can actively design (i.e., construct, often neglected or underutilized; an opportunity viewed in isolation, seem link, sequence), in innovative ways, to create or raise revenue at a relatively low inefficient. For example, boundary-spanning exchanges and cost. for their Zara business, activities. This structure is captured Economic limitations can be turned to your they perform many ge- by the fi rm’s business model. advantage. Creating a model of sustainable per- neric activities largely in- formance that is diffi cult for your competitors to house, such as the dyeing INTERDEPENDENCE IN ACTIVITY imitate can be far more benefi cial than copying and cutting of fabric, and The number of activities that a a single product or a new process. the washing, ironing, and l company carries out is typically ticketing of finished gar- large, and for that reason innovating Realizing the potential of this type of innova- ments. Moreover, they tion raises the alertness of management to in the business model requires trac- moves by the competition in this area and it outsource sewing to ing the system of activities. becomes easier to identify competitive threats. small workshops located close to their Spanish However, managers need to bear To change the whole system of operations it is production facilities. in mind that identifying technologi- necessary to develop a systemic and holistic ap- cally and/or strategically distinct ac- proach, which can be draining. For this reason, When viewed in isola- tivities can be conceptually challeng- the options available for designing the business model are rarely questioned. Bear in mind that tion, both of these choices ing because the number of potential whatever choices are made will have signifi cant seem ineffi cient, hence activities is often quite large. Many implications in the long term. questionable. As a whole, seemingly inseparable activities can however, their carefully be broken down further, especially designed activity system given ongoing advances in informa- allows Inditex to bring new tion and communications technolo- fashionable garments from the design gies. One way to deal with this issue is stage to the shop fl oor within record to defi ne activities at diff erent levels time — days as opposed to months — of aggregation, such as focusing on which makes a big diff erence in the fast- the supply chain operations reference moving fashion business. Although its model, which lays out top-level activi- competitors have much stronger track ties (plan, source, make, deliver and records and capabilities in product in- return), and also specifi es sub-activi- novation and logistics, Inditex beats ties that can be delineated at second, them to the punch through its busi- third, and fourth levels. At high levels ness model, which relies on standard of aggregation, activities could com- resources (e.g., people who spot new prise whole business functions, such trends, but do not create them) and as accounting and human resource off -the-shelf technologies (e.g., stan- management. At low levels of aggre- dard communication technologies for gation (i.e., high levels of decomposi- transmitting real-time feedback from tion), activities could be as specifi c as the retail shops to the design teams), the processing of customer e-mails but which deploys these resources in based on their content, or the transla- activities that are linked and governed tion of product manuals into a foreign in novel ways. language. HOW TO INNOVATE IN THE BUSINESS INTERDEPENDENCE MODEL? A CONCEPTUAL PRIMER IN THE DESIGN OF ACTIVITY Rapid advances in information The most important design ele- land communication technologies lments characterizing a system of 34 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE activities are content, structure and to innovative activity system gover- governance. These elements can be nance. It can be the key to unlocking RETHINKING strengthened, leading to innovation value, as was the case for Japanese in the business model. retailing when entrepreneur To- THE FIRM’S shifumi Suzuki realized in the early The content of an activity system 1970s that the franchise system de- BUSINESS refers to the selection of activities, veloped in the U.S. was an ideal re- i.e., those that are performed. For sponse to the strict regulations im- MODEL CAN example, in addition to the typical posed by the Japanese government activities of a retail bank, Bancolom- on retailing outlets (e.g., limiting PAVE THE WAY bia adopted activities to offer mi- their size and restricting opening crocredits to reach the more than 60 times). By franchising Seven-Eleven TO A NEW FORM percent of Colombians who did not stores in Japan, Suzuki adopted a have access to banking services. To novel type of activity system gover- OF INNOVATION. perform these new activities (and nance and managed to create value thereby innovate its business model through professional management content), the bank needed to train and local adaptation. its top management, hire and train new staff, and link the new activity DESIGN OF THE MODEL to its existing system (platforms, Managers can innovate in the applications and channels). lthree design elements of a busi- ness model (content, structure and In the 90s, IBM changed its focus of governance) simultaneously. interest and moved from being a hard- ware supplier to a service provider. The Lending Club, Prosper and Zopa company relied on the knowledge and are aimed at enabling direct small, experience it had gained over the years unsecured loans between individu- to launch a new range of activities in als. Important business-model de- consulting, IT maintenance and other sign issues for the founders in the services. As a result, more than half early stages of these firms were: (1) of the $90 billion in IBM revenues in whether or not to include a second- 2006 came from these activities, which ary market for trading loans in their hadn’t even existed 15 years before. activity systems (a content issue); (2) how precisely to link borrow- The structure of an activity sys- ing and lending activities — for ex- tem describes how the activities are ample, would they provide an algo- linked, e.g., sequencing among ac- rithm that automatically matched tivities, and exchange mechanisms borrowers to lenders, and if so, to among the linked activities. whom and to how many (a structure issue); and (3) who should perform Consider Priceline.com. This on- the credit risk assessment of the line travel agency has established borrower, the P2P firm or the lender links with airline companies, credit (a governance issue)? card companies, and the Worldspan Central Reservation System, among The founders of Prosper made others. Through the introduction of the conscious early decision to let a reverse market in which custom- lenders choose the borrowers to ers post desired prices for sellers’ whom they wanted to lend their acceptance, however, the firm has money. This was a structural choice fundamentally innovated the ex- (settling the question of how lend- change mechanism through which ing and borrowing activities were these parties interact and by which linked) but at the same time consti- items such as airline tickets are sold. tuted a decision about governance Priceline.com has been granted a (the evaluation and selection activi- business method patent on its inno- ties were shifted to the customers vative activity system. The structure and not performed by the firm). of that system distinguishes the firm from other travel agencies. INTERDEPENDENCE IN THE REVENUE MODEL The governance of an activity The revenue model, akin to a system refers to who performs the lpricing strategy for specific activities. Franchising, for example, products or services, refers to the represents one possible approach specific modes in which a business- Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 35 I D E A S model enables revenue generation satisfi ed through the design of a THE for the focal firm. In that sense, a new activity system? revenue model complements a busi- PERSPECTIVE OF ness model design, just as a pricing 2. What novel activities are needed strategy complements a product de- to satisfy the perceived needs? THE BUSINESS sign. Although the concepts may be (Business-model content) quite closely related and sometimes MODEL ALLOWS even intertwined — for example, 3. How could these activities be in the product world, Gillette uses linked to each other in novel US TO SEE THE its pricing strategy of selling cheap ways? (Business-model struc- razors to make customers buy its ture) FIRM AS A rather expensive blades — business models and revenue models are con- 4. Who should perform each of the ceptually distinct. activities that are part of the BOUNDARY- business model (e.g., the focal A business model is geared to- fi rm or a partner), and what SPANNING ward total value creation for all par- novel governance arrangements ties involved. It lays the foundations could enable this structure? SYSTEM OF for the focal firm’s value capture by (Business-model governance) co-defining (along with the firm’s ACTIVITIES. products and services) the overall 5. How is value created through “size of the value pie,” or the total the novel business model for value created in transactions, which each of the partners? can be considered an upper limit to the firm’s value capture. The busi- 6. What focal fi rm’s revenue model ness model also co-determines the will allow it to appropriate part focal firm’s bargaining power. The of the value created from the greater the total value created and new business model? the greater the focal firm’s bargain- ing power, the greater the amount of Addressing these questions and value that the focal firm can appro- adopting the business model per- priate. How much of the total value spective helps managers and entre- the firm actually captures, however, preneurs purposefully structure the depends on its pricing strategy or activity systems of their firms in co- revenue model. operation and interdependence with other firms and economic agents SIX QUESTIONS EXECUTIVES in their ecosystems. This purpose- NEED TO ASK ful design and structuring can be an As we have seen, the source of important source of innovation, in linnovation seems to have shifted particular during times of change from the product and process to the and specifically, during periods of organization of a firm’s activities, resource scarcity and high uncer- specifically, their content, struc- tainty and volatility in both capital ture and governance. Echoing this and real markets that adversely af- shift, practitioners such as venture fect revenues and profits. capital investors increasingly em- phasize the importance of “asset- Most importantly, perhaps, the light” companies. Indeed, our own perspective advanced in this article research shows that in a highly in- encourages systemic and holistic terconnected world, entrepreneurs thinking when considering innova- and managers must look beyond the tion, instead of concentrating on product and process levels to focus isolated, individual choices. The on their business model and on ways message to managers is clear: look to innovate it in order to create and at the forest, not the trees — and get exploit opportunities for new rev- the overall design right, rather than enue and profit streams. In this re- optimizing details. MORE INFORMATION: gard, we suggest that managers ask Universia has published the full version of this themselves the following six key article. questions: Zott, C. and Amit, R., “Business Model Innovation: Creating Value In Times Of Change,” Universia 1. What is the objective of the new Business Review, Special Issue on Business business model? In other words, Models, June 2009. what perceived needs should be 36 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE Your web challenge is ... multi-site? multi-language? multi-country? multi-channel? multi-…? 1 content, n sites, n languages, n countries, n channels If your organization has a multi-challenge in the online world, you will get ahead with SDL Tridion, the world’s leader in Web Content Management. Join our impressive list of international customer references, such as ABN AMRO, BBVA, Canon, Emirates, KLM, Lexus, Renault, Ricoh, Sano -Aventis, Scania, Toyota, Unilever, Yamaha and IESE Business School. Get ahead, choose SDL Tridion. www.sdltridion.com I D E A S HIGHLIGHTS Banking in Emerging Countries Do fi nancial institutions in developing countries have any specifi c social responsibilities? IESE’s Antonio CRITERIA FOR CHOOSING A Argandoña and Francesc Prior would VENTURE CAPITAL FUND say yes – particularly when considering HEINRICH VON LIECHTENSTEIN, ALEXANDER PETER GROH that a lack of fi nancial depth is an In their study “The First Step of the Capital Flow important obstacle to economic lfrom Institutions to Entrepreneurs: The Criteria for Sorting Venture Capital Funds,” IESE Prof. Heinrich growth in less developed nations. von Liechtenstein and Alexander Peter Groh, a visit- In their recent article, the authors ing professor at IESE, analyze the criteria employed present the underlying causes of low by institutional investors in selecting which venture capital firms to invest their money in. After conducting fi nancial depth and provide examples a survey of more than 1,000 institutional investors, the of fi nancial industry best practices in authors found that the most important criteria are the three emerging economies: Colombia, expected deal flow; access to transactions; a VC fund’s historic record; its local market experience; the match Ecuador and Peru. of the experience of team members with the proposed investment strategy; the team’s reputation, and the FULL ARTICLE : IESE Insight mechanisms proposed to align interest between the institutional investors and the VC funds. FULL ARTICLE AND VIDEO: IESE Insight HEALTH AND PSYCHOLOGY “FAST FASHION” RETAIL OFFSHORING FACTS CO- IN THE WORKPLACE STRATEGY RRECT COMMON MYTHS PAULA BROUGH, THOMAS KALLIATH, VÍCTOR MARTÍNEZ DE ALBÉNIZ, PABLO AGNESE, MICHAEL O’DRISCOLL AND STEVEN FELIPE CARO JOAN ENRIC RICART POELMANS Over the course of the 20th centu- The retail fashion industry has Contrary to common belief, off s- lry, the fi eld of psychology has had l witnessed a revolution , with lhoring is not the preserve of large an increasing infl uence on the under- stores like H&M and Zara surpassing developed economies, as Pablo Agnese standing of work performance, em- Gap to become major players in the and Joan Enric Ricart demonstrate in ployee health and work relationships. market.Victor Martínez of IESE and their review of off shoring in a range of More recently the sub-discipline of Felipe Caro of UCLA Anderson School countries, large and small. They also occupational health psychology has of Management describe their unique highlight the continuing prominence emerged within the organizational strategy in “The Eff ect of Assortment of manufacturing over the services psychology domain, and interest Rotation on Consumer Choice and Its sector; the latter, while on the rise, in it has generated dedicated jour- Impact on Competition,” represents a small fraction of total off s- nals, academic texts and university which appears as a chap- horing. The study concludes that sma- courses. In a response to this growth ter in the new book, ller countries are, in relative terms, of interest, the book, Workplace Psy- Consumer-Driven among the biggest off shorers and chological Health: Current Research Demand and SUBSCRIBE that, while the off shoring of and Practice, discusses eleven topics Operations NOW! service industries is growing pertinent to contemporary workers Management All information regarding faster than the off shoring of and to occupational health experts in Models. IESE research is available materials, the level remains particular. for consultation at insignifi cant. MORE INFORMATION: IESE Insight IESE Insight and IESE MORE INFORMATION: IESE Insight Publishing. 38 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE AWARDS SOCIAL COSIMO CHIESA ENTREPRENEURS Paul E. Spector, Tammy Allen, Cary l , IESE professor Cosimo Chiesa Cooper, Laurent M. Lapierre, Juan IN INDIA: A SMALL of marketing, received the title of Sánchez and Michael O’Driscoll, was STEP TOWARDS Knight of the Order of Merit of the chosen as one of the 20 best articles INSTITUTIONAL Republic from the President of the in the annual Rosbeth Moss Kanter Italian Republic in recognition of his CHANGE Award for Excellence in Work-Family contributions to the economic and Research competition. KATE GANLY, JOHANNA MAIR academic world. The paper, published in Person- nel Psychology, one of the journals In their role as change agents, STEVEN POELMANS with the highest impact factor in OB / social entrepreneurs tackle l IESE Prof. Poelmans’ paper HRM, is one of the fi rst international persistent social problems “Cross-national Diff erences in Rela- studies to analyze diff erences in that often require innovative tionships of Work Demands, Job Sat- work-family confl ict in 26 countries solutions in resource-scarce isfaction, and Turnovers with Work- around the world. environments. While much Family Confl ict,” co-authored with research to date has focused on the “entrepreneurship” side of the equation, there have been few studies that examine the Hogarth, of the Universitat Pom- NOT TOO MUCH, processes of “social change” NOT TOO LITTLE peu Fabra. The study analyzes to what extent satisfaction with the that these entrepreneurs and ELENA REUTSKAJA, choices we make depends upon the organizations aim to set in ROBIN M. HOGARTH number of options available to us. motion. One way to defi ne the The degree of Although it is widely accepted that role of social entrepreneurs lsatisfaction it is preferable to be able to choose in social change processes is derived from any between a range of options, when to view them as institutional given decision we are presented with too many we entrepreneurs. In the paper depends largely tend to hesitate and delay decision “Social Entrepreneurship in on the number making. Reutskaja and Hogarth Rural India: A Small Step Ap- of alternative options available. observe that the number of choices proach Towards Institutional This is the central fi nding of the available to us should be restrained study, “Satisfaction in Choice as a to within a moderate range, which Change,” authors Kate Ganly Function of the Number of Alter- allows us to weigh up the pros and and IESE Prof. Johanna Mair natives: When ‘Goods Satiate’ But cons of each but does not inhibit the draw upon a broader research ‘Bads Escalate,’” written by Elena decision process. study of one such entrepre- Reutskaja, assistant professor of neurial actor in Eastern India, marketing at IESE, and Robin M. FULL ARTICLE : IESE Insight and address issues of institu- tionalized inequality and social exclusion through community development work. Cluster Management: MORE INFORMATION : IESE Insight Th eory and Practice The third edition of the Barcelona Clusters Summer School (BCSS 2009), organized by IESE’s International Center for Competitiveness, took place from July 6 to 17 at IESE’s campus in Barcelona. As with previous editions, the program was coordinated by Emiliano Duch, founder of the Institute for Competitiveness and president of the consultancy Competitiveness, on behalf of which he advises throughout the world on the development of clusters. The BCSS 2009 off ered a 2-week program combining the study of theoretical concepts with a close look at the best real-life cases, delivered by a team compris- ing some of the world’s leading cluster experts. They included IESE Profs. Pascual Berrone, Pankaj Ghemawat, Joan Enric Ricart and Antoni Subirà, program di- rector Emiliano Duch and Christian Ketels, a professor at Harvard Business School and a member of Michael Porter’s Institute for Strategy and Competitiveness. Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 39 I D E A S Human IESE Insight Resource Publishes Second Edition: Th e Power Management of Partnerships JAVIER QUINTANILLA, MARÍA JESÚS BELIZÓN, LOURDES SUSAETA, ROCÍO SÁNCHEZ-MANGAS The second issue of IESE Insight, In this chapter of the IESE’s new management journal, book, The Cultural focuses on the power of partnerships. Context of Human Re- It features contributions from experts source Development, ed- at leading universities, including ited by Carol D. Han- Kathleen M. Eisenhardt of Stanford sen and IESE Prof. University, Thomas Vollmann and Yih-teen Lee, the authors describe the Carlos Cordón of IMD and Venkat evolution of HR policies in Spain, particu- Ramaswamy of the University of larly the strategic management of HR. Michigan, along with IESE professors Prompted by recent political, economic África Ariño, Pinar Ozcan and Bruno and social change, we have seen consider- CassimanC . The able, growing interest in a more holistic publicationpu and systematic view of developing indi- aanalyzesn how viduals and their organizations. In this ttheh potential chapter, titled “Malleability in Spain: The ooff working in Infl uence of US Human Resource Devel- opment Models,” the key focus is on the ppartnershipa can development of the HR function. bbee maximized aandnd value TRANSFERRING KNOWLEDGE WITHIN ccreatedre through MULTINATIONAL CORPORATIONS mmeanse such as SEBASTIAN REICHE, ANNE-WIL HARZING, MARIA L. KRAIMER ccollaborationoll Through their capacity Maria L. Kraimer analyze anandd the process of lto exchange intellec- and describe the functions tual capital between the that international envoys co-creation. The journal also includes head offi ces and the bran- fulfi ll as key agents of articles by respected academics Prof. ches of the multinationals knowledge transfer. Due to they work for, international their familiarity with their John A. Quelch of Harvard Business envoys play a role that is companies’ headquarters School and John Ward of Kellogg becoming increasingly and branches, these agents important. In their latest facilitate valuable intellec- School of Management, as well as study, “The Role of Inter- tual exchange. The authors an interview with Peter Sutherland, national Assignees’ Social of the study also analyze Capital in Creating Inter- how and under what cir- chairman of British Petroleum (BP) Unit Intellectual Capital: cumstances this knowledge and Goldman Sachs. A Cross-Level Model,” is transferred. Profs. Sebastian Reiche, Anne-Wil Harzing and FULL ARTICLE : IESE Insight 40 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE C R O S OS R OI A D S REDISCOVERING THE ROLE OF BUSINESS SCHOOLS The current crisis has highlighted the need to redefi ne the role of senior managers in organizations. JORDI CANALS Professor and Dean, IESE Business School usiness schools are the academic setting where Today, business schools are being criticized by some, in management knowledge is developed and re- particular regarding the role they have had in the current fi - searched in a systematic way. The Wharton nancial crisis. In this article, I will briefl y review some of the School, set up in 1881 within the University major challenges business schools face today. I believe that Bof Pennsylvania, was the fi rst business school business schools need to take a more decisive role in shaping founded in the United States. Several other the concept and mission of the fi rm, and rethinking the role graduate schools were created in the U.S., such as Harvard of senior managers in organizations. and Dartmouth, before World War I. In Europe, most of to- The current fi nancial crisis has generated two types of day’s leading schools were established in the late 1950s and criticism against business schools. The fi rst is related to fac- the 1960s. tors external to business schools. The second type has to do The positive eff ects of business school programs are evi- with some internal gaps and defi cits that business schools dent through the lives of many successful entrepreneurs should recognize. and fi rms. The failures and mistakes of individuals educated at business schools, including those related to the current SOME EXTERNAL FACTORS fi nancial crisis, distract us from the positive eff ects that Business schools and the crisis. Some observers who business schools have had in terms of developing excellent llevel criticism against business schools – such as lack of professionals across many industries in new and longstand- relevance, unethical behavior or negative impact on people ing fi rms. Business schools have contributed to job creation and fi rms – have a point, though for reasons that are diff er- and innovation, both in developed and emerging countries. ent from those sometimes mentioned. It is true that many The many challenges that businesses and society face in the MBA graduates have gone to work for Wall St. in recent years. 21st century will only heighten the demand for highly pre- However, even among the schools where the investment pared managers and entrepreneurs. banking industry recruited heavily, the total number of MBA 42 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE graduates in important managerial positions in those fi rms was relatively small and their responsibilities were probably similar to those of other professionals who had not attended business school. Moreover, there are many business school graduates working in many other industries and having a positive impact on companies and society. A diff erent ques- tion is whether senior managers with a good education from a good school could have done more to avoid such a disaster in the banking industry. Globalization. Many Western companies have failed in l their eff orts to become more international and global. Some of them have committed strategic mistakes as they sought to penetrate foreign markets. Many more have taken cultural missteps when working in foreign environ- ments. Perhaps more complex is the fact that developing and transferring talent in global companies has become a nightmare, with a feeling of frustration experienced by both companies and employees. Business schools have to do a better job teaching the processes and challenges of glo- balization in their programs and activities. In fact, business schools still have a long way to go in terms of taking global- ization more seriously. Corporate reputation. The damage to many fi rms’ rep- l utations that has taken place in parallel with the recent economic crisis is a great concern. In many countries, fi rms used to be admired institutions that created jobs, generat- ed investment and signaled advancement. Unfortunately, these perceptions have changed over the past years. Some companies have suffered severe blows to their reputa- tions. Many fi rms are seen as pure profi t maximizers and their role in society seems to be in question. This percep- tion goes beyond the crisis of investment banks and other fi nancial institutions. At the same time, some business leaders are seen today as the villains in these developments because they drove them or allowed them to happen.The public views them as opportunists with a short-term focus on their own benefi ts and privileges. Many business schools are still stuck in traditional fi nan- cial-based models of management and have been very slow in reacting to these challenges. Ethics, values and a more humanistic view of fi rms are dimensions that can be found in too few business schools. THE POSITIVE EFFECTS INTERNAL FACTORS The mission defi cit. Organizations with a strong sense lof mission can develop informal mechanisms that may OF BUSINESS SCHOOL lead to higher performance and increased work satisfaction. A clear mission sends a signal to the whole organization by PROGRAMS ARE EVIDENT stating why a fi rm exists, what values it stands for and what purpose it has. THROUGH THE LIVES Many business schools do not have a clear sense of mis- sion and what they seek to do in society. It is clear that all of OF MANY SUCCESSFUL them have the goal of helping educate people and develop- ing new knowledge. The question is whether this is still valid ENTREPRENEURS AND enough today and, if it is, what balance business schools should strike betwen the activities they want to have. In FIRMS. principle, there is no superior model, but it is important to understand why a business school exists and what it wants to be. IESE’s view since its foundation in 1958 is that it should aim at developing leaders who aspire to have a deep, positive Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 43 C R O S OS R OI A D S and lasting impact on colleagues, their own fi rms and soci- ety at large through professionalism, integrity and a spirit of service. We think that good management and leadership can change people’s lives and organizations, and help improve societies. IESE’s programs aim at advancing the practice of management and leadership and generating programs and new knowledge that can contribute to this process. The relevance defi cit. Business schools became rel- l evant institutions after World War II because they helped tackle a very important need: the education of professional managers and the development of a body of knowledge about the main management disciplines. In the 1970s and 1980s, many business schools became more inter- ested in promoting the same type of research as traditional universities. The fact is that research became increasingly less relevant for the practice of management, even if it was adorned with an allegedly superior academic rigor. The relevance defi cit also became very clear in the school programs. Many top U.S. and European business schools did not off er executive programs until very recently. It was, in part, a matter of choice, but it was also attributable to the lack of interest that faculty members had towards work- ing with senior executives on real business problems. This should not be the case: research and practice should be closely connected in business education and the classroom is a great context where ideas, hypotheses and experience should be discussed. The humanistic defi cit. In many schools, faculty mem- l bers see fi rms as organizations whose social purpose is to maximize profi ts for shareholders, and align executive pay to economic performance. Unfortunately, these theo- ries have displaced some higher ideals in the business world and the force of pragmatism in getting results has become the dominant paradigm. The claim that people are important is stronger than ever; but in practice, many decisions are taken without consid- ering their impact on people. Today, we have management models completely void of human presence, where decision making happens in a mechanical way and incentives shape the motivations of the agents. At the beginning of the 20th century, prominent business people had the perception that companies had a social pur- pose, beyond making money. As a matter of fact, the foun- dation of schools such as Harvard and IESE is rooted in the economic value. Nevertheless, this is not the only goal that conviction that educating business leaders in a rigorous, a company has, nor is it an objective that can be achieved ethical way is important for the good of society. by purely economic means, for several reasons. Companies are groups of people working together to serve clients in a TOWARDS A NEW NOTION OF THE FIRM very effi cient way. Profi ts are one of the indicators of how AND BUSINESS LEADERSHIP the company is doing, but not the only one. At a more per- Reframing the view and role of the fi rm and business sonal level, individuals would like to get things done in the lleaders in society is a priority for business schools. If best possible way. But this also means that they will have to companies and senior managers are not viewed positively work with others to make things happen. In personal rela- in society, business schools may become irrelevant. tionships, trust is essential. Corporate cultures and values that enhance the work environment should be a priority for A new view of the fi rm. A fi rm is an organization made top managers. Incentives that may destroy basic attitudes l up of people who work together with the purpose of and values should be removed from the fi rm’s policies, even producing and delivering goods and services for clients, though the cost may have a short-term impact on profi ts. and creating economic value in the process and opportuni- Companies are not only profi t maximizers. Decision- ties for learning and improvement for the people involved making models that overemphasize this dimension, at the in the fi rm. This framework is a starting point for redefi ning expense of ignoring others, may end up creating a concept the role of companies in society. Companies have to create of the fi rm that is far from the healthy view of the organiza- 44 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE CORPORATE CULTURES AND VALUES THAT ENHANCE THE WORK ENVIRONMENT SHOULD BE A PRIORITY FOR TOP MANAGERS. This assumption is at odds with one of the basic te- nets of many companies and management scholars: people do matter. Some companies talk about people as their most important asset or pillar. Unfortunately, many managerial models across different disciplines – finance, marketing and organizational theory – simply take a lighthearted view of people in organizations. The humanistic perspective of the firm has several pillars. The first is that each person is unique and can make a unique contribution. Second, each person has intrinsic dignity and basic rights to be respected in the workplace and in society. Third, each person has the freedom to make decisions and the right to act free from coercion to use this freedom against his or her own will. Fourth, each person is responsible for the use of his or her capabilities and rights, and for the external actions for which he or she is accountable to others and soci- tion that a dynamic society actually needs. From the 1980s ety at large. Fifth, each person has basic material needs, through the 2000s, we witnessed the unstoppable preemi- but also has aspirations and motivations that go beyond nence of capital markets, investment banks, fi nancial goals material and economic incentives. Sixth, each person and an almost exclusive view of fi rms as profi t makers. has values that have to be respected as long as they do Many of the excesses and crises that appeared over those not do any harm to other people or to themselves. years were in part a natural outcome of a warped view of In the past, many theories made the assumption that the fi rm. A positive view of the fi rm goes beyond an eff ort management was a neutral entity. Management is not to avoid scandals, although it can certainly help diminish neutral. It involves people making decisions and people their likelihood. receiving the influence of those decisions. And deci- sions are based on the choices and values that each per- PEOPLE IN COMPANIES: A HUMANISTIC son has. The isolation of the decision-making process VIEW OF THE FIRM as a pure rational process is not a real experience. Man- The dominant economic and sociological paradigms agers should bring values to the workplace. However, lin management have put forward simplified ideas of there are conditions for sustainably carrying this out individual behavior in organizations. In both approaches, and avoiding clashes with people with different values: the notion of individual freedom is replaced by determin- each person respects the other person as a unique hu- ism: Given the right incentives and the right environment, man being with intrinsic dignity that deserves respect. people will always behave in a certain way. One’s values have to recognize this very simple point. Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 45 C R O S OS R OI A D S THE CHALLENGES FACING BUSINESS SCHOOLS ARE GREAT, BUT THEIR FUTURE VERY MUCH DEPENDS UPON THEIR ABILITY TO SERVE ENTREPRENEURS, FIRMS AND SOCIETY. The role of senior managers. A new notion of the fi rm passed the test of time, despite managerial mistakes, be- l has implications for the functions and role of senior cause their CEOs have led by example. The example con- business leaders. In a close parallel with the view of the sists of a mix of professionalism, fairness, virtue, courage, fi rm as profi t maximizer, the role of senior business lead- strength and generosity in thinking of others. This does not ers, starting with the CEO, board members and members of mean putting other people ahead of us, which may not even the top management team was seen as maximizing profi ts be human, but putting other people and their interests and and market values in the short term. There is nothing in- ambitions at least at the same level as ours. By taking this trinsically wrong about this, except that a fi rm’s value cre- perspective, senior managers have the potential to be an ation is the outcome of a process. If this process is not well important force for change in society, and mangement can designed and well managed, the outcome cannot be good. be a profession that serves the common good. This perspective does not ignore fi nancial results, but refl ects the reality that good performance is the outcome SOME FINAL REFLECTIONS of many decisions regarding people, clients, products, Management remains an important profession in so- services, operations and other factors. The chief execu- lciety today. The challenges facing business schools are tive’s role is to make sure that people work in a way that great, but their future very much depends upon their ability is both effi cient and eff ective, that makes them feel proud to serve managers, entrepreneurs, fi rms and the commu- about what they do, that generates clients who are pleased nity. with what the fi rm off ers them and shareholders who are One important step that business schools must now take pleased enough with the fi nancial performance of their is to redefi ne the view of the fi rm. In addition, they must re- investment. defi ne the meaning of the management profession, the role This view of business leaders has a critical implication: of senior managers and the unique mission of companies in business leaders are professionals whose function is to society by going beyond the generation of economic value. serve. Service is the key attribute in any profession wor- IESE Business School has focused on these goals ever thy of its name, and this is also true in the business world. since it was founded in 1958. The strong sense of IESE’s A leader who does not serve her people, her clients, her mission and values, along with the entrepreneurial drive shareholders, her society, is not a good professional. He of its faculty, staff and alumni, has led the school to grow or she may help the company make money in the short successfully, and has also helped to create new schools and term but may create an unsustainable organization in programs around the world. IESE’s fundamental values are the long term. quite unique among business schools worldwide and the This view also reminds us that business leaders have current fi nancial crisis shows us that these values are more to lead by example. Many successful organizations have important than ever. 46 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE or_internac-service_dina4ok.ai 1 175.00 lpi 15.00°75.00°0.00°45.00° 13/07/0913/07/09 17:4117:41 Cian de cuatricromíaMagenta de cuatricromíaAmarillo de cuatricromíaNegro de cuatricromía C R O S OS R OI A D S 46TH MEETING OF THE HBS-IESE COMMITTEE PREPARING BETTER LEADERS or the last 46 years, faculty members from Professors Joan Enric Ricart (IESE), Eric Weber (IESE), Srikant M. Datar Harvard Business School and IESE have (HBS), W. Carl Kester (HBS), met annually to reflect on the future of Richard Vietor (HBS), Jordi Canals (IESE) and management education. In Europe, IESE José L. Nueno (IESE). is the only business school with which HBS has such strong ties. F At its annual meeting held recently on MORE THAN FOUR DECADES OF SHARED HISTORY IESE’s campus, members of the HBS-IESE The group not only analyzed the reasons behind the Committee unanimously agreed that one of the primary lcrisis and possible solutions in the short, medium causes of the fi nancial crisis was a lack of ethics. They dis- and long term. Members also looked at how to avoid a cussed what needed to be changed and what leaders will need similar crisis in the future. Founded in 1963 as a result to guide their fi rms in the future. of the strong relationship between the two institutions, Committee members also pointed to a lack of leadership and the committee meets each year to discuss global trends eff ective governance, factors that depend upon the behavior in business and management education, as well as joint and actions of people, as underlying causes of the recession. research and teaching projects. The Committee played HBS and IESE are institutions that have the responsibility of a key role in the establishment of IESE’s full-time MBA transmitting and fostering integrity and eff ective leadership program, the first of its kind in Europe. capacities in business leaders, now and in the future. For this HBS professors taking part in the meeting this year were reason, the objective of university-based education must not W. Carl Kester, deputy dean for academic affairs, and be reduced to merely providing tools or technical skills. Man- Profs. Srikant M. Datar and Richard H.K. Vietor. Profes- agement development should address all areas that have an sors representing IESE were José Luis Nueno, professor impact on doing business, from knowledge and skills to ethical of marketing; Joan Enric Ricart, professor of strategic behavior. (See Dean Jordi Canal’s article on the future of busi- management; Eric Weber, professor and associate dean; ness schools in this edition of the IESE Alumni Magazine). and Jordi Canals, dean of IESE. IESE - HARVARD RELATIONSHIP • Began back in 1963 • Jointly deliver the Global CEO Program for China • IESE is the leading distributor of Harvard cases in Spanish 48 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE IESE Insight review is a premium feature of the IESE Insight Subscribe knowledge portal. Subscribers enjoy complete access to all NOW the content of the magazine. Subscribers also gain access to and the entire archive of back issues, as well as online extras and enjoy special offers. (Members of IESE’s Alumni Association enjoy next issue for the same privileges as subscribers and are able to access all of the same material for free.) free! YES, send me a 1-year subscription to IESE Insight REVIEW (4 + 1 ISSUES) €30 YES, send me a 3-year subscription to IESE Insight REVIEW (12 + 1 ISSUES) €70 SAVE OVER 20%! NAME: LAST NAME: COMPANY OR ACADEMIC INSTITUTION: E-MAIL: TEL.: CHOOSE YOUR USER PROFILE: PROFESSOR GENERAL SUBSCRIBER SELECT YOUR PREFERRED LANGUAGE TO RECEIVE MATERIAL: ENGLISH SPANISH PAYMENT OPTIONS BY CREDIT CARD BY BANK TRANSFER If paying by credit Please use the following codes for card, we will contact making a bank transfer you. Please make sure you have ACCOUNT NUMBER: 0182-7305-57-0010285803 included your correct IBAN: ES40 0182 7305 5700 1028 5803 contact details above. SWIFT: BBVAESMMXXX SUBSCRIBE ONLINE: www.ieseinsight.com/subscription ESTUDIOS Y EDICIONES IESE, S.L. In accordance with Spanish Act 15/1999 on Personal Data Protection, you are here- Av. Pearson 21, 08034 Barcelona, Spain by NOTIFIED and agree that any data with which you provide us will be entered Tel.: (+34) 93-253-4200 in a database, the title holdership and responsibility of which pertain to IESE and Fax: (+34) 93-253-4343 ESTUDIOS Y EDICIONES IESE, S.L., and shall be handled with complete confi - E-mail: [email protected] dentiality. You may exercise your rights to access, modify, cancel and oppose the www.ieseinsight.com/review processing of your personal data by writing to: [email protected] C R O S OS R OI A D S “IT IS TIME TO ADAPT TO CHANGING CONSUMER NEEDS” BERNARD MEUNIER, ernard Meunier, country head for Nestlé Spain and Portugal, describes COUNTRY HEAD how his company is adapting to meet changing consumer needs during this FOR NESTLÉ SPAIN period of uncertainty. Meunier, who AND PORTUGAL talks of the rise of a “new consumer,” B highlights the need to develop new of- fers in the consumer goods industry as well as carry out exhaustive studies of each market in or- IESE HAS DESIGNED A der to anticipate and address their future needs. As Nestlé’s Country Head for Spain and Portugal, you CUSTOM LEADERSHIP are leading the company’s efforts in one of the three European markets most affected by the economic down- PROGRAM FOR NESTLÉ turn (Spain, the U.K. and Ireland). Prior to this, you lived through the 1998 ruble crisis in your leadership role at Nestlé’s Russia and Eurasia division. What did you learn AIMED AT PREPARING from your fi rst experience of managing in a crisis that you can apply to this downturn? THE COMPANY’S FUTURE In a crisis, the most important thing is to act, quickly and in the right direction. Doing nothing is the surest way to LEADERS FOR THE suffer the full impact of the deterioration of the environ- ment. Not all decisions will be correct, and therefore it is essential to constantly monitor the impact of these deci- CHALLENGES OF AN EVER- sions on our performance, and correct those that do not give the expected results or go in the wrong direction. CHANGING WORLD. For this we need to get closer to our clients and con- sumers, understand how much they are changing as a result of the crisis, and share within the company this information in real time, through more frequent, direct and concise communications. In essence, we need to get closer to the market, com- municate better and faster, and act decisively, whilst con- tinuously monitoring the impact of our decisions. What is different about this crisis and how is Nestlé responding to it? This crisis is unprecedented in Spain, coming after more than 15 years of sustained growth in the economy and in private consumption. It is changing the way consumers look at what they buy, where and how they shop. The con- IESE • Custom programs offer companies personalized solutions for addressing strategic challenges. CUSTOM PROGRAMS • IESE delivers custom programs in cities around the world. 50 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE sumer has changed more in the last 12 months than in the previous five years. We need to adapt our offer of products and services to this ‘new consumer’, better differentiating our prod- IN A CRISIS, THE MOST ucts from the competition, reinforcing the quality/price perception of our offer, and giving to consumers the full benefit of our superior R&D capabilities in the form of IMPORTANT THING higher nutritional values for our foods and drinks. IS TO ACT, QUICKLY What is Nestlé’s strategy with respect to private labels? It is our task to convince the consumer that our products AND IN THE RIGHT are superior in terms of quality, taste and nutritional pro- file – what we call at Nestlé the 60/40+ approach. There DIRECTION. is obviously little future for national brands that are un- distinguishable from retailer brands and charge a 50% premium without clear justification. At the same time, we should not limit our offers to the middle and high price segments of the market, and we will increasingly focus our efforts on developing offers in the ‘economy’ segment of the market, with the launch of Popularly Po- sitioned Products, or PPP as we call them. IESE • Strong collaborative relationship between IESE and the company. • Outstanding performance delivery. CUSTOM PROGRAMS • Personalized attention. Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 51 C R O S S R O A D S Nestlé has a wide range of products in its portfolio, from Perrier mineral water to Friskies dog food. Does Nestlé have any plans to increase visibility of the company’s umbrella branding? OUR MANAGERS NEED We do more than half our sales with products that are marketed under the Nestlé corporate brand, such as Ex- TO QUICKLY ASSUME trafino, Nesquik or Nidina. But we also have a rich port- folio of independent corporate brands such as Nescafé LEADERSHIP ROLES IN and Nesquik, which enjoy high awareness and apprecia- tion. The link between all our products and the Nestlé A “BUSINESS UNUSUAL” corporate branding is ensured through the seal of guar- antee and the nutritional compass at the back of all labels. ENVIRONMENT AND IESE However some brands such as Friskies, Perrier or Buitoni do not boast the Nestlé nest on their back labels as their (THROUGH ITS CUSTOM brand essence would not benefit from such a direct link. This being said, millions of consumers visit our www. PROGRAM) HELPS nestle.es web site each year where the full range of brands and products is clearly visible. As we multiply the points THEM UNDERSTAND of contact with our consumers’ online (mails, web sites, on-line videos) the link in our consumers minds between OUR MULTIFACETED Nestlé and all its brands grows by the day. CORPORATE CULTURE. The global economic crisis has prompted a period of introspection on the part of lawmakers, governing bod- ies and consumers. Does Nestlé expect to see a greater interest on the part of consumers in socially conscious products that are organic and/or fair trade? If so, how does Nestlé plan to respond to this? At Nestlé we have a strategic integrated approach to CSR BERNARD MEUNIER Meunier oversaw the im- called Creating Shared Value which stands for the fact A LIFE AT NESTLÉ plementation of a similar that while creating value for our shareholders we also cre- marketing structure at ate value for society. This approach, all the more impor- the newly-created orga- tant in times of crisis, is highly valued by consumers and A Belgian graduate of nization. From January opinion leaders, and contributes to our solid corporate economics, Bernard Me- 1998, he served as sales reputation. We have developed a plan to communicate it unier has built a highly director for Nestlé. in a more proactive way in the months and years ahead. successful career within In 2000, Meunier was the Nestlé Group. After placed in charged of the Nestlé is a Swiss company and yet consumers may working for two years as general management not be aware of this. Switzerland has positive marketing advisor at AC of Nestlé Hungary and connotations for many consumers in respect to good Nielson, he joined Nestlé between May 2003 and design and a clean, orderly environment. Yet Benelux in 1985 as brand March 2005 served Nestlé has chosen not to exploit this. Why do you think manager and in 1987 as head of the non- this is so? was appointed sales household division of We are proud of our Swiss heritage and never conceal it. manager. In 1990, he Nestlé France as well as At the same time, we are also very proud that in many of transferred to the group’s president of Davigel, an the countries in which we operate a majority of consum- headquarters in Vevey affi liate of the Nestlé ers believe that the company originates from their own (Switzerland), where he group. In April 2005, country. That’s the case for example in the U.S., in the was made senior marke- he was appointed chief U.K., in France, and to some extent in Spain. This proves ting advisor for Coffee executive of Nestlé how well we have integrated into the national landscape and Beverages. In 1992, Russia and later went on and how relevant our brands and products are for the lo- as director of marketing to assume control of all cal consumers. It obviously helps that we have been in for Nestlé Hungary, the group’s businesses in Spain for 104 years! When it comes to food and nutrition, Meunier put in place an Eurasia. consumers attach a high value to culture and traditions. effective structure for On November 1, 2008 Food is largely local, and adapting our recipes to local the marketing functions Meunier was appointed taste has always been an intrinsic part of our winning and introduced a highly country head of the formula. effective management Nestlé Group for Spain culture and system and Portugal, whose IESE runs the Advanced Leadership custom program for within the Hungarian di- headquarters is located Nestlé’s Future Leaders. Where do you see the benefi t of vision. In 1996, when he in Spain. this program as a newly installed chief executive? moved to Nestlé Russia, The Nestlé Advanced Leadership Program is designed to accelerate the preparation of Nestlé Spain and Portugal’s 52 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE THE KEY TO BEING SUCCESSFUL IN TODAY’S GLOBAL ECONOMY IS TO DEVELOP A HIGH CULTURAL AND EMOTIONAL ADAPTABILITY. future leaders for the challenges facing them, in a fast- changing world. Our managers need to quickly assume leadership roles in a “business unusual” environment and IESE helps them understand our multi-faceted cor- porate culture by being exposed to other business mod- els. It also gives participants who have been given new people management responsibilities an insight in their personal leadership style and new skills to motivate their teams. As a Belgian who has worked for a multinational com- pany in his home country, Russia, Hungary, France and Spain, what do you believe are the keys to working suc- cessfully in today’s global economy? Being born and raised in a multicultural country at the heart of Europe has been an inspiration. I always wanted to grow beyond the borders of my small native country and experience working in diverse social and cultural environments. I chose to work for Nestlé because I knew this company would give me the opportunity to do so if I could prove my worth. I believe the key to succeed in today’s global economy is to develop a high cultural and emotional adaptability. Understanding a different culture, coming to like it and keeping a good personal balance allow you to both enjoy and succeed in a foreign environment. And multiplying experiences in various countries gives you an invaluable vision of the globalized world and a definitive edge over those that have always worked in the same location. Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 53 C R O S S R O A D S SHORT FOCUSED PROGRAMS 09-10 TARGETING SUCCESS Since its foundation in 1958, IESE UPCOMING PROGRAMS IESE’s portfolio has sought to provide CEOs, Among the upcoming Short executives and entrepreneurs with Focused Programs IESE will off er of Short Focused management education that is is “Achieving Operational Excel- highly relevant, as well as based on lence,” (March 2-5, 2010) which has solid research. With this in mind, proven immensely popular among Programs covers the school is continually updating participants of past editions. “The and expanding its series of Short program goes far beyond current a broad range Focused Programs, which highlight SCM practices to provide a compre- a wide spectrum of critical busi- hensive business perspective,” said of topics, and is ness areas. former program participant Marco “All the programs set for this year Haakmeester, vehicle logistics aimed at bringing have been designed with the spe- control Europe manager at Nissan cific needs of companies in mind,” Europe S.A.S. says Mabel de Muller, director of Another popular program has been executives up to Short Focused Programs. With a “Developing Leadership Compe- history going back over 20 years, tencies,” the next edition of which speed on critical IESE’s Short Focused Programs will take place at IESE’s campus in have become highly effective man- Barcelona in November 2010. “The management agement education tools. As with program gave me deeper insight all IESE programs, Short Focused into my strengths and areas for topics. Programs take a general manage- improvement, and strategies to ment perspective, providing a develop them. As the head of human comprehensive view of the firm. resources, my ability to develop Recently IESE offered the program the leadership competencies of for executives, “Tough Times, our managers has been greatly Tough Strategies: Leading Your enhanced,” said former participant Company to Global Growth.” The Tove Elisabeth Nielsen, head of cor- program took place in New York, porate image and human resources October 5-8, coinciding with the at J. Lauritzen. World Business Forum. Participants had the opportunity to attend presentations deliv- ered by prominent global leaders including President Bill Clinton, economist Paul Krugman, film- maker George Lucas and David Rubenstein, managing director of The Carlyle Group. The Forum was held at Radio City Music Hall. The IESE program was led by IESE Prof. Paddy Miller with the participation of members of IESE’s faculty. 54 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE appropriate conditions to nurture 2. ACHIEVING innovation. Led by IESE Prof. Paddy UPCOMING OPERATIONAL Miller, it is a must-do program for EXCELLENCE those leaders who are in need of SHORT FOCUSED NEXT EDITION: boosting innovation through a turn- BARCELONA, MARCH key solution. PROGRAMS 2-5, 2010 www.iese.edu/cc This program addresses how to cut costs and free up cash by optimizing operations. Participants learn specifi c methods for lowering costs and improving service quality, as 1. ADVANCED well as how to devise and implement DIGITAL MEDIA new supply chain frameworks. STRATEGIES www.iese.edu/aoe In Partnership with the Institute for Media and Entertainment NEXT EDITION: NEW YORK, DECEMBER 9-11, 2009 5. GETTING GLOBAL STRATEGY RIGHT As the media and entertainment NEXT EDITION: industry has moved full-force BARCELONA, to digital platforms, business JUNE 8-11, 2010 models have shifted radically. Executives need to understand Based on research by IESE Prof. the forces driving these changes, Pankaj Ghemawat, one of the and they need the tools to act world’s foremost authorities on strategically as developments globalization, this program will continue to unfold. The sessions 3. GETTING THINGS DONE set forth guidelines to evaluate will be led by IESE Profs. José NEXT EDITION: and exploit cross-border business Luis Nueno, Josep Valor and BARCELONA, opportunities. Participants will Sandra Sieber MAY 18-21, 2010 leave the program equipped with the necessary tools to determine the The Getting Things Done program best competitive strategy for their shows business leaders how to organizations. identify sources of power within www.iese.edu/ggsr their oganizations and use this information to effectively infl uence others and drive strategic change. 6. DEVELOPING Led by Stanford University Prof. LEADERSHIP Jeffrey Pfeffer and IESE Prof. COMPETENCIES Fabrizio Ferraro, Getting Things NEXT EDITION: Done unlocks the mysteries behind BARCELONA, strategy implementation and reveals NOVEMBER 2010 the most essential factors in bringing about the successful execution of Leadership skills are critical in business objectives. turbulent times - not just to survive, www.iese.edu/gtd but also to gain competitive advantage. In this program, led by IESE Prof. Pablo Cardona, 4. CREATIVE CULTURES: participants learn practical ways to MAKING INNOVATION harness competencies for cultural WORK change and develop a thorough NEXT EDITION: understanding of the coaching NEW YORK, process. JUNE 10-11, 2010 www.iese.edu/dlc This program showcases how to MORE INFORMATION: unlock innovation by implementing a www.iese.edu/sfp proven framework and securing the Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 55 C R O S OS R OI A D S 9TH PUBLIC-PRIVATE SECTOR MANAGEMENT COLLOQUIUM SOCIAL RESPONSIBILITY The Doing Good TRUST AND and Doing Well COMPETITION Conference The Keys to Beating Receives Award The Graduate Management lAdmission Council (GMAC) the Crisis awarded IESE’s Doing Good and Do- ing Well Conference (DGDW) the TeamMBA award for Best Education Initiative at its annual conference including policies aimed at guaran- in Baltimore, Maryland, on June 19. teeing toxic assets, injecting liquidity Liz Curran (MBA’09) and Alvaro into the fi nancial systems and lower- Carbón (MBA’09), along with IESE ing interest rates, as panic contain- MBA Admissions Director Javier ment measures. Muñoz and Associate Director Anna The IESE professor also provided Lee, collected the award in front of a an overview of the type of short, me- 600-strong audience. dium and long-term objectives policy “The fact that IESE won this makers should pursue to address the award is testament to the significant crisis. In the short term, the priority effort put in by hundreds of students must be to regain the trust of investors since 2004 and the support of IESE and consumers, while for the medium staff and faculty,” said Curran short- and long term, policy makers should ly after accepting the award on the seek to strengthen the economy’s school’s behalf. foundations so as to allow for growth that is both stable and sustainable. They should also work to minimize any harmful disruptions to competi- GLOBAL LEADERS IN ASIA tion and trade. Building Closer A LONG-TERM VIEW To ensure their countries emerge Carlos Cavallé, the president of Ties with Japan lfrom the crisis as swiftly and pain- lthe Public-Private Sector Re- lessly as possible, public policy mak- search Center (SP-SP) and former “IESE’s growing presence in Japan ers must deliver sweeping reforms in dean of IESE, sent a clear message of lmakes an important contribution all areas, ranging from productivity realism and caution, saying that “the toward strengthening the relationship and education to the justice system, crisis will be long.” However, he cited between Spain and Japan,” said Alfon- public administration, pensions and the Obama Plan as a positive example so Carbajo, councilor of commerce at the labor market. This was the recom- of how to address it. the Spanish Embassy in Tokyo, during mendation made by For his part, An- a special session organized by IESE’s Prof. Xavier Vives, dreu Morillas, sec- Alumni Association and the consul- academic director Policy makers retary of state of tancy fi rm IGB Network dedicated to of the SP-SP Center, the department of the theme “Developing Global Lead- during the 9th Pub- should work to the economy and ers in Asia.” lic-Private Sector minimize any finances of the re- Norihito Furuya, of IGB Network, Management Collo- disruptions to com- gional government and IESE Prof. Kimio Kase moder- quium held on June petition and trade. of Catalonia, em- ated the session, which was attended 19 at IESE’s campus phasized the need by 70 alumni, as well as a number of in Barcelona. Prof. for a change of para- other executives. IESE Prof. Pedro Vives also laid much digm, while Joaquim Nueno also gave a session in which of the blame for the current fi nancial Triadú, vice-president of the SP-SP he highlighted the technological and crisis on the economic policies adopt- Center, said that what is most needed industrial power and creativity of ed by governments around the world. is to regain a sense of business ethics Japanese companies, saying that the Prof. Vives roundly described gov- and responsibility. country is poised to excel once the ernments’ responses to the crisis, economy rebounds. 56 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE 3RD INTERNATIONAL CONFERENCE OF WORK AND FAMILY Companies Reveal True Work-Life Colors in Crisis IESE’s International Center include granting sabbaticals or reduc- ing the working week to four days, for for Work and Family Holds example. Academic Conference and The survey also found that U.S. em- ployers had begun to ask employees Practitioner-Focused Forum to assume more of the cost of salary benefi ts such as health insurance and pensions. Leading international scholars in In addition to companies’ commit- lthe fi eld of work-life issues and ment levels to work-life policies dur- HR executives from family-respon- ing the downturn, scholars discussed sible businesses gathered at IESE whether employees would make use Business School’s Barcelona campus of them in times of uncertainty. “The on July 6 to 8 to discuss topics under reality may be that employees may feel the theme of “Harmonizing Work, scared about using these policies,” said Family and Personal Life in Times of ance, it realizes that the issue is not Prof. Gary Powell of the University of Crisis.” IESE’s International Center the policies’ cost, but rather the cost Connecticut. “There is an increased for Work and Family (ICWF) hosted to the fi rm of not implementing and pressure to perform,” he added. the event. supporting them. Chinchilla pointed “It has to be clear to your supervisor The 3-day event comprised ICWF’s out that if companies abandon work- that your job is your number one prior- 3rd International Conference of life policies now, they run the risk of ity,” Judi Casey of the Sloan Work and Work and Family, led by IESE Prof. de-motivating staff to do their best: Family Research Network agreed. But Steven Poelmans, exactly the opposite she also pointed to anecdotal evidence followed by the 5th of what is required in the media that the waves of layoff s Family Responsible Because of of them in the cur- are prompting some to reassess their Companies Forum. rent climate. attitudes to work and life. “There is The forum, orga- the crisis, Prof. Las Heras this tone of opportunity that says, nized by the ICWF’s organizations need referred to previ- ‘maybe we could work less, become Director, Prof. Nu- to become more ous crises to il- less consumer-oriented and get by on ria Chinchilla, and creative. lustrate the point. a smaller income?’” she said. her colleague Prof. For example, in the And some of the U.S middle-class Mireia Las Heras, early 1990s, IBM households getting used to surviving gathered together remained commit- on one salary are facing other shifts. HR leaders including Accenture’s ted to work-life policies despite a More men than women have lost their Global Human Capital Director, sharp downturn. The company had jobs due to the crisis, and male high- Armelle Carminati. to close offi ces to save money, so it earners over 50 are fi nding it particu- introduced telecommuting policies, larly diffi cult to fi nd re-employment, MOMENT OF TRUTH allowing employees to work from Prof. Ellen Kossek of Michigan State Profs. Chinchilla and Las Heras home. “Because of the crisis, orga- University said. lsaid the downturn is separating nizations need to become more cre- On the positive side, Prof. Kossek the wheat from the chaff in terms ative,” she said. also flagged up opportunities for of organizations’ commitment to work-life balance brought by the cri- work-life policies. Chinchilla said THINKING OUTSIDE THE BOX sis. The academic said the changing the crux is the companies’ underly- Ellen Galinsky of the Families paradigm presents the possibility to ing motivations for rolling out such land Work Institute shared some “re-engineer work practices, get rid of policies. If it is mere window dress- of the creative solutions employers low-value work and switch to results- ing in a bid for positive PR, the com- reported in its 2008 U.S. survey. Ini- oriented work.” pany may find it easy to ditch work- tiatives ranged from instigating sug- life initiatives. gestion boxes for employees on how On the other hand, the IESE pro- to cut costs to granting unpaid time MORE INFORMATION: fessor said that if an organization off during the school vacation peri- insight.iese.edu/ is truly committed to work-life bal- ods for employees. Other schemes Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 57 C R O S OS R OI A D S AGENDA Dave Ulrich 8TH IESE-IRCO PEOPLE MANAGEMENT SYMPOSIUM OCTOBER 19-20, MADRID Prof. Ulrich will discuss the qualities of a good leader and Prof. Cardona will explain how to pick out potential leaders from among employees. GRADUATIONS OTHER PROGRAMS AND SESSIONS On November 6 the graduation Monday October 5, New York / Short ceremonies of the Strathmore AMP Focused Programs: Tough Times, and the PMD Brazil will take place Tough Strategies. in Barcelona. Tuesday October 20, Madrid / Short Focused Programs: Operational Finance: Current Assets and Trea- PROGRAMS sury Management. On October 6 and 7, New York will be Tuesday October 20, Barcelona / Short the setting of the World Business Fo- Focused Programs: Marketing and rum, which will feature an interview Sales Management: Managing, Orga- by Paddy Miller and the CEO of Abbott, nizing and Motivating the Sales Team Miles White. Tuesday November 3, Barcelona / Short On October 19-21, the Institute for Focused Programs: Strategic Manage- Media and Entertainment (IME), in ment of Global Value Chains. New York, will host a Short Focused Program on Branding in Media Wednesday November 4, Barcelona / and Entertainment, led by faculty Short Focused Programs: Developing members from the Kellogg School of Creativity and Innovation Within November 24, Barcelona / Short Management. the Company. Focused Programs: Management . Competencies: How to Develop My Monday November 2 will see the November 10, Barcelona / Short Fo- Relational Capacity. inauguration of the fi rst module of the cused Programs: Sales Management: Pan African AMP. Managing, Organizing and Motivat- November 24 and 25, Madrid: Opera- ing the Sales Team. tional Excellence: Keys to Competi- The New York-based IME will also be tiveness. the setting for the Short Focused Pro- October 11 and 12, Madrid: Keys to gram Advanced Media Strategies, Successful Operations in Interna- November 24, 25 and 26, Madrid / which will be held from December tional Trade: Contracting, Risks and Short Focused Programs: Negotiate 9-11 Financing. Effectively: An Everyday Business November 18, Barcelona / Short Fo- Necessity. cused Programs: Management Com- petencies: Portfolio Management. 58 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE MEETINGS Meeting of the Advisory Board of IRCO (International Research Cen- ter on Organizations) on September 10 at IESE’s campus in Madrid. 3rd Pharmacy Industry Meeting: Towards a New Industry Model? Chief executives of many of the leading pharmaceutical companies will gather at IESE’s campus in Barcelona on November 5. PRESENTATIONS The Global Alumni Reunion (GAR) will be held in New York on October In December / January, Prof. Kimio 10 and 11. Kase will present the Value Creation in Sports Management study. On October 20, the Health Technol- ogy Meeting will be held under the Prof. Jasmijn C. Bol, of the University slogan “Recognizing Value.” of Illinois at Urbana-Champaign, will be at IESE’s campus in Madrid The 24th Meeting of the Auto- on October 26 to present her latest mobile Sector will be held at the research on Supervisor Discretion campus in Barcelona from November in Target Setting. The session will 24-25. be coordinated by Prof. Fernando Peñalva. On November 5, Prof. Eva Ascarza, of London Business School, will be at OTHER IESE’s campus in Barcelona to present MEETINGS her latest research work, Modeling Churn and Usage Behavior in November 12, Seminar Contractual Settings. The session on the Building and will be coordinated by Prof. Jorge Management of González. Global Teams. 17th Finance Forum MEETING NOVEMBER 4-5, MADRID CIIF – the International Center of Financial Research – is currently organizing the Spa- nish Association of Finance’s 17th Finance Forum, which will be held on November 4-5, 2009 at IESE’s campus in Madrid. Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 59 P E O P L E ALUMNI Vinay Kothari Building Business in India Vinay Kothari (MBA ’92) came to n the 5th century, it was mathematicians in In- dia who came up with the idea of zero, making a IESE looking for the knowledge and major impact on science and commerce around experience that would help him turn the world. Today, India and its rapidly expanding Ieconomy are poised to make another impact on his aspiration to run a global company the business world – despite the economic down- into a reality. Today, he has launched turn, says Vinay Kothari. “India is one of the countries least aff ected by the crisis, major ventures with two fellow IESE mainly because of its prudent fi scal policies,” says Kothari. graduates, while helping IESE’s alumni “The growth rate is projected to increase from the current 6 percent to approximately 8 to 9 percent by the end of community in India blossom. 2010.” To boost economic momentum, India’s government has announced major stimulus packages and investments in sectors such as real estate and infrastructure, includ- ing power generation, highways, airports and industrial parks, he said. Kothari is well-positioned to analyze his country’s economic future. He sits on the boards of direc- tors of three companies – KBK Group, Savera and Imago Screens. He also serves as a non-executive director on the board of Force Motors Ltd. When he speaks of his home country, he does so with notable esteem. And no wonder – with fast-growing IT and automobile sectors, and one of the largest pools of engi- neers in the world – India already boasts the 12th largest economy in the world. The story was diff erent, however, when Kothari was lured to IESE to do his MBA in the early 90s. At that time, the country was just undergoing reforms that liberalized markets, setting the stage for the economic prowess India has developed today. 60 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE INDIA IS 7ONE OF THE FEW COUNTRIES LEAST AFFECTED BY THE DOWNTURN, MAINLY BECAUSE OF ITS PRUDENT FISCAL POLICIES. FIRM ROOTS for European programs because of their global character Originally from the north Indian State of Rajasthan, and closer proximity. lKothari’s parents moved to Mumbai in the late 1950s. Kothari liked IESE’s highly global approach, 2-year for- His father started a real estate develop- mat and pan-European links. He was also ment business there, which later fuelled enticed by the distinctive cultural expe- Kothari’s drive to one day lead a company rience that IESE offered, as compared FOLLOWING THE MBA, himself. “My family has always earned their to other business schools. “I had always daily bread ‘doing business.’ Having been THE DESIRE TO PURSUE wanted to learn about a new culture, so surrounded by such an environment since HIS GOALS AND LEAD I was a little different,” reflects Kothari. early childhood, it was only natural that I A GLOBAL FIRM IN HIS He was already married at the time of the would choose to go in to business and dream HOME COUNTRY LED HIM program, so his wife was able to experi- of having a global business,” he says. BACK TO INDIA. ence Barcelona as well, he notes. And, in Kothari carried out his entire schooling fact, Kothari’s first child was born while in Mumbai, and began his journey toward he was in the MBA program. He was par- becoming an entrepreneur by earning a bachelor’s degree ticularly influenced by classes led by professors Pedro in accounting and economics at Mumbai University. It soon Nueno on entrepreneurship and Pablo Fernández on fi- struck him, however, that he needed more preparation if he nance, he said. Following the MBA, the desire to pursue was going to reach his goal, ideally in an international en- his goals and lead a global firm in his home country led vironment. “I realized that in order to succeed in global him back to India. business, I needed to update myself with modern manage- ment theories and concepts, strengthen interpersonal and SOLID PARTNERSHIPS quantitative abilities and gain international exposure. So I Kothari says the choice of IESE has paid off in many ways, decided to pursue an MBA and enrolled in the program at lparticularly in terms of the business partnerships he has IESE,” he said. built with fellow IESE alumni. At the same time that his IESE He was drawn to the IESE program for numerous MBA has helped him professionalize his family’s real estate reasons, among them the outstanding faculty, the large fi rm, Kothari’s involvement with the school’s Alumni Asso- international student community, the use of the case ciation has led to joint ventures with two Spanish companies method, the bilingual English-Spanish dimension and which are global in their respective markets. the fact that the program is top-ranked. While some stu- The first is with Savera India Private Limited, a lead- dents from India choose U.S. MBA programs, others opt ing company manufacturing steel guide rails used in the Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 61 P E O P L E 7IN ORDER TO SUCCEED IN INDIA, COMPANIES MUST BRING THEIR BEST AND LATEST PRODUCTS AND MUST ALSO PRODUCE LOCALLY AND COMPETITIVELY. elevator industry. The second venture is with Imago group, to reduce the product development costs.” Kothari stressed a global fi rm that manufactures variable message signs used that the current economic downturn has changed the way in intelligent transport systems and visual communications. the world does business. “One has to be cautious consider- Both companies are led by IESE MBAs: Savera’s managing ing the large under-utilized capacities available around the director is Ramón Azpiroz (MBA ’97), and Imago is headed world in sectors such as steel and automotive.” As a long- by Tony Batllo (MBA ’94). time member of the board of Force Motors Limited, a com- “Vinay has been extremely cooperative from the begin- pany publicly listed on the Indian stock exchange, Kothari ning,” says Batllo, “and has brought to the joint venture has extensive experience in the automotive industry. contacts, people selection, local knowledge and more This expertise has led to his participation in one of than useful help in moving local government and large IESE’s longest-running events, the Automotive Industry corporations. After one year of cooperation, we feel very Meeting, organized at the school’s Barcelona campus by satisfi ed that we’re present in almost all relevant tenders, IESE Prof. Pedro Nueno. Kothari has taken part in three the key players know us and we have surpassed our initial editions of the meeting as a speaker, an experience he de- sales budget.” Azpiroz stressed that Savera always relies scribed as “incredible.” on local partners when developing manufacturing activity “You meet top people in the industry – it’s an important abroad. In this sense, working with Kothari, a fellow IESE event,” he said. alumnus, has been “a safe and quick way to know some- body to become our local partner in India.” STRENGTHENING IESE’S ALUMNI BASE Moreover, “we have been able to develop an excellent Kothari’s contributions to IESE, however, have not personal relationship with all that means - friendship, lbeen limited to Barcelona. He currently serves as pres- the opportunity to know a completely new culture and ident of the Regional Alumni Chapter in India, which was country,” Azpiroz said. Both Batllo and Azpiroz stressed formed just two years ago. Though relatively small now, the benefi ts of IESE’s alumni network. Batllo notes that the group is growing quickly. he has turned to the network on various occasions for in- “We have a total of 38 alumni in the chapter currently, formation, advice or recruitment purposes. The success of which 32 are of Indian nationality,” he said. “Close to of these two joint ventures, as well the expansion of his 60 percent are members of the Alumni Association and we family’s business – KBK Group - have been key highlights have a small but steadily growing community of enthusias- in his professional career so far, Kothari tic alumni, eager to contribute to the de- says. “We are continuously looking for velopment of the IESE brand in India and more opportunities to partner with for- KOTHARI RATES THE stimulate activity among alumni.” eign companies who would like to set up The group has organized a session in SCHOOL’S ALUMNI operations in India.” Mumbai with guest speaker Mr. Pawan NETWORK AS ONE OF Agarwal, CEO of Nutan Tiffi n Box Sup- BUSINESS IN INDIA THE MOST IMPORTANT pliers Charity Trust, who shared the Although the global panorama remains ASPECTS OF THE principles and work philosophy of his luncertain, Kothari says that India PROGRAM. company. offers excellent opportunities for mul- “With this event, we leveraged the tinational companies looking to expand presence of the Inside India Short Fo- beyond national boundaries. Yet he put forward several ca- cused Program, which took place at the same time in veats for fi rms with their sights on the country. Mumbai, offering the possibility for alumni in India, “India is a value-conscious and a price-sensitive market. IESE professors and program participants to reunite at In order to succeed, companies must bring their best and the event,” he said. latest products and must also produce locally and competi- IESE’s Dean Jordi Canals also met last year with alumni tively,” he says. in New Delhi, to share his thoughts on the fi nancial crisis “The scale of operation should be global,” he says. “In and corporate governance with alumni in the area. order to achieve economies of scale the strategy should be Given his active involvement with the Alumni Associa- to produce for both local consumption and exports. Com- tion and his partnerships with other IESE alumni, it is no panies must also take advantage of the low-cost engineering surprise that Kothari rates the school’s alumni network as skills available to set up research and development centers one of the most important aspects of the program. 62 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE P E O P L E YOU’RE IN THE NEWS ARE YOU IN THE NEWS? We are interested in all your latest news. Send your comments to [email protected] EMBA ‘88 Encamp (Andorra). María joins 18- Juan I. Pinedo del Campo month-old brother Ramón. has been appointed director general of the Fernández-Vega Pepe Hanzé Research Foundation and and his wife, Isabella, have Ophthalmology Institute, both announced the arrival of their based in Oviedo. daughter, Isabella, born on June 8 ______in Guayaquil, Ecuador. G-EMBA ‘05 ______Mathias Illius G-EMBA ‘10 and his wife, Betty Torres, Miguel Rescalvo have announced the birth of their has been appointed director of PDG-A-09. Carmen Urbano, son, Mathias Antonio, born on Climate Change Services in North fi nancial director of the animation April 30 in Barcelona. America for the company Der studio Ilion, has informed IESE that the Norske Veritas (DNV). studio’s latest fi lm, Planet 51, an alien Tomasz Troniewski ______comedy adventure, will open at cinemas and his wife, Magdalena, MBA ‘89 on November 20. welcomed the birth of their After occupying various senior daughter, Antonia, in Warsaw on posts at companies such as May 7. Camper and Loewe, Ramón Solé anniversary of their graduation. ______Capdevila has been recruited They were joined by Prof. Pedro G-EMBA ‘08 to oversee the international Nueno, who presented a session. Lope Hoces expansion of the Spanish chain Class representatives Carlos tied the knot with his fiancée, store Musgo, which specializes in Torres and Ferrán González Gloria, on May 23 in Barcelona. home decoration, gifts and fashion. helped organize the event. His former MBA classmates were ______among the wedding guests. PADE-II-89 PADE-1-08 ______This class shared lunch together On June 16, Prof. José Luis Nueno G-EMBA ’09 on June 1 to mark the 20th delivered a session about the Marc Martínez Selma anniversary of their graduation. Nespresso Case to members of this has been appointed new director Julio González Ubanell organized class. Conchita Gassó and Ruth of the Corredores y Grandes the event. Aixemeno organized the meeting. distribution channels of Zurich ______Spain. PADE-I-01 PDG-I-89 Cremades & Calvo-Sotelo Law Josep M. Ayala Frank Höving Firm recently appointed Joan M. has been appointed president has announced the birth of his Pujals to the company’s advisory of the Instituto de Crédito second child, Carla, who was born board. Pujals was a counselor in the Oficial (ICO). Ayala has worked on May 12. Frank and his wife, Generalitat – the Catalan regional throughout his career in the Sandra, are already parents of one government – between 1992 and banking sector, first as business son, Mark. 1999. director at BBVA, and later as ______executive president of BBVA Ramón Lladós PADE-1-04 Banco Ganadero de Colombia and his wife, Mercé, On July 2, members of this class and managing director of Banca welcomed the birth of their returned to IESE’s campus in Catalana. Prior to taking on his new daughter, María, on May 26 in Barcelona to celebrate the fifth role at ICO, Ayala served as chief 64 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE G-EMBA. IESE Alumni from the U.S. and Mexico gathered in Aspen, Colorado for 4 days of skiing, live music and nightlife from March 26-30. They were also joined by an Australian delegate from London! The participants were Andie Jenkins, Tomas Rehfi sch (G-EMBA ‘03), Jorge Davalos (G-EMBA ‘04), Steven Hickson (G-EMBA ‘02), Fernando Garcia (G-EMBA ‘03), Sean Ugrin (G-EMBA ‘03), Henrik Scherer (G-EMBA ‘03) and Carlos de la Torre (MBA ‘06). IN REMEMBRANCE F. JAVIER MOLINS LÓPEZ-RODÓ (MBA ‘72) passed away on July 1 at the age of 62. Husband and father of four children, Javier Molins was vice- president of Cementos Molins, as well as chief executive of Inversora Pedralbes and Otinix. JAVIER PIERA SERRA PDG ‘94/ ‘99/ ‘04. At the invitation of the Madrid Alumni Division, alumni of these (MBA ‘85) three groups, accompanied by their spouses, attended a session led by Prof. Luis died on June 25 at the young age of Manuel Calleja. The event ended with a cocktail reception. 49. Piera Serra led a highly success- ful professional career while always managing to share close ties with executive of the Institut Català de by Josep Tous and Simona staff and fellow executives. He was Finances (ICF). Volonterio, with the help of Pedro the founder, in 1994, of the company Torrebadella. Europraxis, which in 2001 was PDG-1-06 ______acquired by Indra, one of the leading Members of the PDG-1-06 had PDG-2-08 IT companies in Europe and Latin dinner together at the Círculo del José R. Pérez Gasull America. Prior to his passing, Piera Liceo on July 8. They were joined and his wife, Carla, have become Serra was chairman of Europraxis by Prof. Antonio Argandoña, parents of their first child, and COO of Indra. who discussed his views on the Pablo, who was born on May 31 in evolution of the financial crisis. Barcelona. The meeting was organized Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 65 P E O P L E AUTHORS EUROPEAN COMPETITION POLICY UNDER THE SPOTLIGHT What Has Worked, What Needs Improving? XAVIER VIVES Competition Policy in the EU OXFORD UNIVERSITY PRESS IESE Prof. Xavier Vives edits new book which takes a look back at 50 years of EU Competition Policy. Competition policy should be a silience and capacity for self-reform. creation of an independent agency, l key priority for governments, es- One of the challenges lying ahead along the lines of the U.S. Federal pecially if they form part of the Eu- for the EC is how to attract human Trade Commission. ropean Union (EU). In the wake of capital. Meanwhile, the author feels that the celebrations in 2007 for the EU’s In the near future, we will also see the challenge facing the economy is 50th anniversary, now is a timely the effects of private litigation in the to provide tools that translate know- moment to ask ourselves: what has EU, as well as more decentralized how into guidelines and practical ad- been successful, what has failed, policy enforcement in the national vice. what still needs to be done? Com- courts. The book was primarily inspired petition Policy in the E.U. Fifty Years by the ideas and proposals that were on from the Treaty of Rome, edited Next 50 Years voiced by speakers and participants by IESE Prof. Xavier Vives, delves Within another 50 years, says Xavi- at the symposium “Fifty Years of the into numerous aspects of European er Vives, the role of the EC could Treaty: Assessment and Perspectives competition policy analyzing the evolve considerably, but the impor- of Competition Policy in Europe,” current situation, identifying defi- tance of competition policy is not which was held at IESE’s campus in ciencies, proposing solutions and likely to wane. One plausible change Barcelona on November 19-20, 2007. shedding light on some potential could be the development of both The authors analyze the relationship future trends. the institutional framework for im- between specifi c regulations for each In general, European competition plementing competition policy and sector and competition policy, com- policy over the past half century can judicial review. In such a situation, it paring competition policy in the EU be considered a success, given its re- would be appropriate to discuss the with that of the U.S. 66 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE P E O P L E AWARDS CHINA HONORS PROF. PEDRO NUENO IESE professor receives highest honor given to foreigners The Chinese government has pre- European Union and the government lsented IESE Prof. Pedro Nueno of Shanghai, which culminated in the the “Friendship Award,” the highest creation of the China Europe Interna- honor it bestows on foreigners. It is tional Business School (CEIBS). the fi rst time the award has been given CEIBS has undergone spectacular to a Spaniard. growth within China and enjoys con- The award was presented by siderable international recognition. China’s President Hu Jintao, in Bei- Prof. Nueno argues that business jing, on National Day, October 1, schools should work closely toge- which also marked the 60th anniver- ther on innovative projects. Since its sary of the foundation of the People’s foundation, CEIBS has had close ties Republic of China. The day’s cele- with leading business schools such as brations, in which both Nueno and IESE and Harvard Business School. his wife were invited to participate, This close relationship has made it culminated in a huge anniversary possible for many IESE professors to parade. Nueno had been invited to deliver sessions at CEIBS. Some have meet with leaders of the Chinese go- even gone on to occupy senior posi- vernment prior to the National Day tions such as Prof. Alfredo Pastor, reception. During the ceremony, held who served as dean of CEIBS from in the Great Hall of People, the IESE 2002 to 2004 and now holds the Spa- professor was congratulated by the nish Chair in Economics, and Prof. Prime Minister of China, Wen Jia- Jaume Ribera, who holds the Port of Prof. Nueno receives the bao. The act was covered by the main Barcelona Chair of Logistics and tea- “Friendship Award,” the highest news channels in China and around ches on a number of programs. honor China bestows on the world. foreigners. CHINESE DEVELOPEMENT EUROPEAN PARTNERSHIP Prof. Nueno, now executive WITH CHINA lpresident of CEIBS, notes that China’s leaders feel deeply grateful to with what had been achieved to rea- Prof. Nueno began his long rela- foreigners who have contributed to lism and resolve regarding the task ltionship with China in 1984 when, the country’s development. During ahead: namely, to continue advan- as executive vice- the final ceremony cing economic and social progress president of the Eu- of the 3-day celebra- with determination, care and good ropean Foundation Nueno was tion, Prof. Nueno management. for Management congratulated by was given a privile- Prof. Nueno has received a num- Development, he ged vantage point in ber of other awards during his career launched a master’s the Prime Minister Tiananmen Square including the Silver Magnolia and program in Beijing of China, Wen close to President the Golden Magnolia, the highest as part of a joint ven- Jiabao. Hu Jintao, from awards given by the government of ture involving five where he was able Shanghai, and the Civil Merit Medal European business to view the October of Spain. He also prizes the awards he schools including IESE, INSEAD and 1 parade. The IESE professor said he received from the International Aca- London Business School. In 1994, the sensed Chinese leaders around him demy of Management and the Har- project was bolstered by the forma- were experiencing a mix of feelings - vard Business School, which he was tion of a “joint-venture” between the ranging from pride and satisfaction presented on its 75th Anniversary. Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 67 P E O P L E APPOINTMENTS ÁFRICA LUIS MIGUEL A. CANELA ARIÑO CABRAL Has joined IESE as visiting Has been appointed director of Has joined IESE as professor of lprofessor in the Department of lIESE’s doctoral program. Prof. l economics and as academic di- Managerial Decision Sciences. Fol- Ariño holds a degree in economics rector of IESE’s new center in New lowing his graduation in mathemat- and business administration from York. Having graduated in econom- ics from the Universitat de Barcelo- the Universidad de Barcelona and ics from Stanford University, Prof. na, Prof. Canela has spent the last 30 a Ph.D. in management from the Cabral has taught at the London years teaching at the same university, University of California, Los Ange- Business School, Haas-Berkeley and as well as serving as a senior consul- les (UCLA). Her research interests most recently at NYU Stern School tant and as director of the master’s focus on strategic alliances, particu- of Business. program in quality management at larly in their structural design, pro- the Institut Català de Tecnologia. His cess issues and evolutionary aspects JOSÉ L. research interests cover a wide spec- of the inter-partner relationship. trum of disciplines from the applica- ILLUECA tions of statistics and mathematical HAKAN Has joined IESE as lecturer in modeling to botany, nutrition and lthe Department of Managing medicine. ENER People in Organizations. Illueca Has joined IESE as assistant has worked for Philip Morris in MARCO lprofessor in the Department of Switzerland, with HR management Entrepreneurship. Having earned a responsibilities in over 15 European TORTORIELLO Ph.D. in management from countries in the processes of change Has joined the Department of INSEAD, Prof. Ener’s research has management, mergers and acquisi- l Strategic Management as as- centered primarily on the manage- tions. His areas of interest include sistant professor. Holding a Ph.D. ment experience pitfall, for which business and change management, in industrial administration from he received a worldwide doctoral decision-making skills, ethics Carnegie Mellon University, Prof. research award from the Center for and business, compensation and Tortoriello is currently a member of Creative Leadership in the U.S. benefi ts. the Editorial Board of the Academy of Management Review and Organi- AMALIA SANDRA zation Science. SANTOS SIEBER DAVID Has joined IESE as assistant Has been named academic di- ZORN ldirector of the Personnel Division. lrector of the Global Executive She holds a degree in economics and MBA program. Having earned her Has joined IESE as assistant di- business administration from the Uni- Ph.D. in economics and business lrector of Executive Education versidad de Zaragoza, an MBA from the administration from the Univer- – Custom Programs. Zorn holds an Saint Ingnatius University, Antwerp, sity of Navarra, Prof. Sieber joined MBA from IESE (‘09) and a degree and a master’s in human resource man- IESE in 2000, following a tenure in industrial and systems engineer- agement from the University of Leeds at the Universidad Pompeu Fabra. ing from the Georgia Institute (UK). Santos has formerly worked Her areas of interest center on the of Technology. He has worked in in the change management division interplay of strategic management production for Siemens, where he of Accenture, in Madrid; has advised and information systems, as well filled a number of operational posts Merck Sharp & Dhome on human rela- as on the role of new information in the U.S., Mexico and Germany, tions, and has overseen training and and communication technologies and oversaw business development development at the Royal Botanical (ICTs) for organizational learning for Choice Point, in Atlanta. Gardens-Kew, in London. and innovation. 68 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE Prof. Melé, Guest Editor of the Journal of Business Ethics Domènec Melé, IESE professor of business ethics, was guest editor of the third issue of the 88th volume of the Journal of Business Ethics, a special issue PEDRO which featured a collection VIDELA of articles on IESE’s 15th Has been appointed director lof the MBA Program. He International Symposium holds a commercial engineering on Ethics, Business and degree in economics from the Universidad Católica de Society, which was held at Chile and a Ph.D. and M.A. the campus in Barcelona on in economics, both from the University of Chicago. His May 17-18. areas of specialization include macroeconomics, international economies and emerging economies. As a consultant, Prof. Videla has been involved in projects with institutions such as the World Bank, IMF, EU, the InterAmerican Development Bank and USAID. HELÈNE C. SOSTARICH BARSAMIAN Has been appointed IESE’s ldirector of corporate develoment in the U.S. She holds EDUARD ALEJANDRO a Ph.D. in French philology from the University of New CALVO LAGO York and a master’s in Romanic Has been appointed assistant Has been appointed philology from the Université lprofessor in the Department lassistant professor in the Catholique de Louvain. To of Production, Technology and Department of Production, date, her professional career Operations Management. Prof. Technology and Operations has primarily focused on Calvi holds an M.Sc. and Ph.D. in Management. He holds a Ph.D. international fundraising. Among electrical engineering from the in electrical engineering from the numerous projects that she Universitat Politècnica de Cata- the University of California has been closely involved in are lunya, and has occupied a range at Berkeley and a degree in the renovation of the Henry Ford of research posts at the Massa- civil engineering from the Building and the foundation of chusetts Institute of Technology Universidad Politécnica de the Kofi Annan Fellowship in (MIT). In 2005 he was presented Cataluña. Prof. Lago’s interests Global Governance. In her new the “Salvà i Campillo” award for the and professional experience post she will work closely with best young engineer by the Gremio include logistics, production the Corporate Development de Ingenieros Eléctricos Catalunya systems and the management Division and senior managers at (College of Electrical Engineers of of complex transportation IESE’s new center in New York. Catalonia). systems. Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 69 L I F E The hedge fund manager and philanthropist participates in the breakfast series run by The Wall Street Journal GEORGE SOROS CALLS FOR RADICAL CHANGE 70 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE eorge Soros, tution’s toxic assets remaining in the chairman of So- old entity. ros Fund Man- THE OBAMA While acknowledging that the agement and ADMINISTRATION’S financial sector had enjoyed many the Open So- MANAGEMENT OF years of high earnings – accounting ciety Institute, for up to 14 percent of total US cor- Gbelieves that the THE CRISIS HAS BEEN porate earning – Soros said that such Obama adminis- CREDIBLE BUT WELL a situation “cannot be maintained tration’s management of the fi nancial SHORT OF PERFECT. and is not really very effi cient either.” crisis has been credible but “well short However, the solution, in Soros’ view, of perfect.” The fi nancier and Obama will not be found in simply expanding supporter was speaking at The Wall the scope and authority of regulatory Street Journal’s Viewpoints Execu- between the Bush administration bodies, whose actions can often make tive Breakfast Series in New York yes- and the Obama administration,” he the markets even more unstable. terday. IESE Business School and The told Deputy Managing Editor of the Boston Consulting Group co-support WSJ, Alan Murray. THE DANISH WAY the series of conversations with global On the topic of the mortgage leaders. UNSUSTAINABLE SITUATION lmarkets, Soros proposes adopt- In Soros’ view, the Obama adminis- In terms of the banks, he would ing or borrowing from the Danish tration is doing very well in all aspects lhave preferred a compulsory re- system. In Denmark, mortgage cred- of government except in the recapi- capitalization with the U.S. treasury it institutions face strict regulations talization of banks and the reorgani- acting as underwriter in the case that on matching the assets (mortgage zation of mortgage markets. “As far shareholders failed to step in. The loans) and the liabilities (mortgage as the management of the financial billionaire financier also proposed bonds) based on “the balance prin- system is concerned, I’m afraid that that the capital be injected into a ciple” or “the balanced book prin- there has been too much continuity “new” bank, with the fi nancial insti- ciple.” Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 71 L I F E 72 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE L I F E NEW YORK BOGOTA PANAMA CITY TURIN SÃO PAULO BUENOS AIRES THE LATEST ON IESE’S ALUMNI CHAPTERS CHAPTER NEWS NEW YORK used by the City of New York to the lessons learned from this case stimulate innovation in the city, can be easily applied to the busi- June 10 and discussed the Levin Institute’s ness world in order to deliver more involvement in two new initiatives competitive and better services. Members of the U.S. Chap- aimed at fostering and retaining The meeting took place at the lter gathered at the Neil D. talent in New York. campus of the Instituto Superior Levin Graduate Institute on June da Empresa (ISE) in São Paulo. 10 to attend sessions by Irving SÃO PAULO Wladawsky-Berger, Garrick Utley August 6 and Lynne Rosansky, professor, June 23 president and vice-president Brazilian Alumni also enjoyed a of academic affairs of the Levin Prof. Beatriz Muñoz-Seca gave ltalk by IESE Prof. Paulo Rocha, Institute of the State University of la session on efficient problem in the same city, on August 6. Prof. New York, respectively. During the solving techniques to Brazilian Rocha discussed his latest study, conference, moderated by IESE Alumni on June 23. The IESE pro- published in IESE Insight, “Não Prof. Sandra Sieber, Wladawsky- fessor recounted the experience gerencie fi las e espera, gerencie Berger provided an overview of the of the Teatro Real as an example of experiências,” which proposes a role of innovation in the current how to deliver five-star service by new conceptual structure geared at economic crisis. Garrick Utley paying more attention to the most helping executives formulate better and Lynne Rosansky described crucial aspects of service delivery. strategies for managing client wait- some of the tools currently being According to Prof. Muñoz-Seca, ing time. 74 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE TURIN July 4 On July 4, Italian Alumni con- l verged on Lavazza’s headquarters in Turin. They were joined there by IESE Prof. Julián Villanueva, who delivered a session on his recent case study “El Bulli: The Taste of Innovation,” and Gaetano Mele, CEO of Lavazza, who discussed his company’s international expansion strategy. The Italian Alumni Chapter would like to thank Gaetano Mele and Marco Valle (Global EMBA ’10) for their sup- port as well as the use of Lavazza’s headquarters for the meeting. 1 PANAMA CITY July 14 Panamanian Alumni met on July l14 in Panama City. IESE Prof. Josep Tàpies led a session on eff ec- tive advisory boards. Arguing that the board must serve as a motor for change within a company and not as a burden, the professor of strategic management described the necessary steps the board must take to ensure a company’s long- term survival and success. The Alumni also enjoyed a session by Gonzalo Gómez Betancourt, professor and head of family business at INALDE, who discussed the dynasty model of family business. Prof. Betancourt highlighted 2 the central role of family unity and commitment in the long-term success of a family business. Finally, Carlos P. Hornstein, head of Gonzalo Gómez spoke about the the IESE Executive Education team, dynastic model of family business. presented two new senior manage- ment programs aimed specifi cally at BUENOS AIRES executives operating in Latin America: the Senior Executive Program and the June 30 Global CEO Latin America. On June 30, the Argentina-Uru- BOGOTA lguay Alumni Chapter gathered its members for a talk by IESE Prof. July 16 Javier Estrada. The session, titled “Good Riddance 2008! What Can We On July 16, Colombian Alumni Expect Now?”, explored the econom- lmet in Bogota for academic ses- 3 ic panorama left in the wake of last sions led by IESE Prof. Josep Tàpies year’s tumultuous events as well as and Gonzalo Gómez Betancourt, the future outlook for some of the big professor and head of family busi- 1. Alumni during a session in São Paulo on June international stock exchanges. 23, 2009. ness at INALDE. During his address, ____ On behalf of the IESE Alumni Prof. Tàpies discussed how to turn 2. Prof. Josep Tàpies speaks in Bogota on July Association, we would like to thank 16, 2009. the board of directors into a motor of ____ Ramiro Castillo Marín (MBA ’98) change within a company while Prof. 3. Prof. Beatriz-Muñoz-Seca in São Paulo on June and Havas Media for their support in 23, 2009. organizing the meeting. Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 75 I E S E & YOU SUCCEED: Maximize Your Soft IMPROVE AS A Power Skills If you missed Prof. Brian LEADER, IMPROVE O’Connor Leggett’s session of the Continuous Education AS A PERSON Program on soft power, you can now access it by e-conference. The talk gives an overview of he new online platform • Executing your action plan soft power: the inherent SUCCEED has been • Evaluating your opportunities qualities that constitute T warmly welcomed by many • Developing your future career personal magnetism and the Alumni around the world plan accompanying rhetorical and who appreciate both its quality and non-verbal communication user-friendliness. As we explained During each of these stages, in the last issue of the magazine, the Alumni can consult or download a skills. According to Leggett, platform aims to provide members broad range of academic content. soft power is the ability to with educational and coaching In addition, they can test their persuade others without tools that enable them to continue knowledge as they go along by any recourse to hard developing as leaders, as well as a completing practical exercises. power behavior. It is about highly personalized service. The SUCCEED also features a life inducement and attraction, platform structures the learning coaching service, which allows namely what enables us process into seven diff erent phrases: users to discuss their personal to master our emotions to objectives with a team of experts reach out and attract others • Self assessment and IESE professors. Through this with a clear vision by way of • Understanding the market service and the personal guidance it our verbal and non-verbal • Choosing your options off ers members will be able to truly • Creating your brand maximize their career potential. communication skills. INFORMATION IS POWER: OTHER CONSULT THE LIBRARY ON-LINE E-CONFERENCES: • “Employability in Times As a member of the IESE Alumni The Economist, as well as download of Crisis: The Importance Association you can access high-quality company profi les (Reuters, of Networking and Self information at the IESE Library. This Datamonitor, D&B, etc.). Users of Direction”(Profs. Nuria term we highlight three commercial Business Source Complete can access Chinchilla and Mireia Las databases (Factiva, Business Source articles from academic journals and Heras). and Ebrary) which can be accessed even professional publications such as off -campus. Harvard Business Review. Meanwhile, Factiva allows you to consult more Ebrary allows you to consult electronic • “Understanding the that 25,000 business sources in 22 books on business and management Economic Crisis: The Role languages, including The Financial from leading publishing houses. of Financial Instruments” Times, The Wall Street Journal and www.iese.edu/en/research/library (Prof. Fernando Peñalva). • “When Will They Ever Learn? An Organizational LIBRARY BLOG Behavior Perspective on the Recent Financial Crisis” (Prof. Jeffrey Pfeffer). IESE’s library team also publishes a subjects that may be of interest to the blog that keeps users abreast of the business community. latest content, reports and studies on bizknowledgewatch.iese.us 78 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE MORE INFORMATION: THE ADVANTAGES www.iese.edu/alumni OF THE IESE MEMBER CARD he IESE Member Card identifi es you as a member of T the IESE Alumni Association and opens the door to a wide range of services. It also provides access to a range of special deals that can save you money on a host of products and services. All Members of the IESE Alumni Association also receive automatic membership of the Association of Graduates of the University of Navarra, which also brings with it a number of lucrative benefi ts. DKV: NH Hoteles ZURICH CONNECT Following a new exclusive The NH Hotel chain is Zurich Connect is a branch agreement with DKV, offering special rates of the Zurich Group which excellently priced medical for Spain and Portugal, offers direct insurance INCREDIBLE insurance plans are including discounts of up to products via the internet OFFERS available to all IESE Alumni 8 percent on the best prices and phone. Zurich Connect Association Members and available at each hotel as is designed to cover your their families (spouse and well as a loyalty points insurance needs with the children) with two policy program. best guarantees, the most options: “DKV INTEGRAL” competitive prices and a and “DKV MUNDISALUD.” broad range of services. OTHER ADVANTAGES Vehicle Hotels • NH-Hoteles • Club de Golf Perelada Car Insurance Purchase • AC-Hoteles • Ontime Hotel • Raventós i Blanc • Zurich Connect • Audi • Ahotels • Prestige Hotels • Bluespace Barcelona • Automóviles • EXPO Hoteles & • Roc Blanc Hotels • Reserva Self-Storage Professional Fernández Resort • S’Agaró Mar Hotel Services • BMW-MINI • Hotel Princesa Sofía • Sol Meliá Hoteles & Car Maintenance • Delex • Cooltra Barcelona Resorts • My Car OK • (B) b Serveis • Peugeot-Autotractor • Hotel Torre Catalunya • The Roger Smith • SAAB Barcelona Hotel Publishing Hi-tech • Volkswagen • GHT Hotels • Torremirona (Girona) • Unidad Editorial and Technology • Volvo - Auto Sáenz • Gran Hotel Balneario Golf and Spa Resort Services Blancafort Health • Acuista.com Vehicle Hire • Habitat Hoteles Business Services • Agrupación Clínica • Dimension Data • Cooltra • Fuerte Hoteles • Forum Business • Atención Sanitaria • Flamagas-Casio • Europcar • Hotel Fontanals Golf Center Domiciliaria • Grupo Caudwell • Hertz • Hoteles Hesperia • Hecop Centros de • Clínica Universitaria • Hewlett-Packard • National-Atesa • Iberostar Hotels & negocios de Navarra • Penteo ICT Analyst Resorts • International • OpenRenting Education • Gran Hotel La Florida Business Centre Security • PGN • Alancity • Hotel Montecarlo • Offi ten • Prosegur • Sertec • Fomento de • Hotel RA Beach • Melior Centros de • Smart Telecomms Centros de Enseñanza • Thalasso-spa Negocios Insurance • Sony • O’Sullivans • Hotel Rex • S.F. Centro de • Acunsa • TechnoTrends • Wesco • Hotel Ritz Negocios • DKV • Trendmicro • La Torrecilla • Windsor & Tuset • Winterthur • Working Oxygen • MAS Residence Business Center • Masia Sureda, • Vallnord Alumni Magazine IESE OCTOBER–DECEMBER 2009 / No. 115 79 L A S T O WR OI R D THE NEW ENCYCLICAL An Ethical View of the Crisis DOMÈNEC MELÉ Chair of Business Ethics ublished in the context between ethics and business activity. Ethics is of the current economic often introduced at the tail-end of business as crisis, the new Encyclical by simply a restriction to activity which, in essence, P Benedict XVI, “Caritas in is considered strictly economic. Ethics is seen Veritate” (Love in Truth), as an add-on: avoid bribes, extortion, fraud, tax is a document which focuses on the need for evasion, etc. Or it is used as a problem-solving integral human development. It speaks about tool, but never as a guiding principle that leads to the current crisis, not to mention many other the consideration during decision-making of the relevant issues. good or bad infl icted on people or groups. Benedict XVI encourages us to confront I understand this “new way” as a recovery of today’s problems with confidence rather something that is, in essence, commonsensical than resignation and to embrace the new but which is easily forgotten: that business responsibilities imposed upon us by a serious activity isn’t simply a matter of production, and complex crisis. And rather than stopping distribution and financing. Above all, it is short at that, it puts forward a proposal for the a human activity, with an intrinsic ethical future which is both profound and bold. He dimension. Profit-driven production, suggests a “profound cultural renewal and a distribution or financing are activities with rediscovery of basic values upon which to build specific procedures, but they are at the same a better future” (no. 21). The Pope sees the time human actions to which the decision crisis as an opportunity to reassess approaches maker is committed. which are often taken for granted. “The crisis,” This last observation links to a request states the Pontiff, “forces us to re-evaluate from the Pope which, in my opinion, has our path, to adopt new rules and to find new great significance: “new efforts towards a forms of commitment, to build on positive unitary understating and a new humanist experiences and reject negative ones. Thus, the synthesis are needed” (no. 21). This “unitary crisis becomes an opportunity to perceive and understanding” of the various aspects that project in a new way” (no. 21). make up management and, above all, this “new A new way? In what sense? And how? I would human synthesis” presupposes a broader dare to surmise that this “new way” relates to rationality which includes the implicit moral a phenomenon that some of us business ethics aspect of every decision and the redefining of scholars have been witnessing for some time many theories and approaches pertaining to now. I am referring to the frequent mental gap business activity. A real challenge, indeed. 80 OCTOBER–DECEMBER 2009 / No. 115 Alumni Magazine IESE Oficina Vodafone We bring you the perfect play for your business’ communication We provide all the communication solutions so that you don’t miss any business chances: Internet and your landline on your mobile phone, with no call forwarding, both inside and outside your office. Find out more on 1443 or on www.vodafone.es/empresas It’s your moment. It’s Vodafone.