116 ALUMNI MAGAZINE

January-March 2010 www.iese.edu

P. Miller - T. Wedell-Wedellsborg J. Villanueva - J.González Blazing the Trail : Where Ideas Really Reaches IESE Prepares to Come From for the Stars Launch U.S. Campus

GLOBAL ALUMNI REUNION START SPREADING THE NEWS

C O N T E N T S

COVER STORY

GLOBAL ALUMNI REUNION IN NEW YORK A GREAT SUCCESS 08

IDEAS BLAZING CROSSROADS MBA CAREER FORUM Embracing the Future 40 THE TRAIL 8TH ANNUAL COLLOQUIUM OF THE EUROPEAN ACADEMY OF BUSINESS IN SOCIETY UPDATE ON Toward a Model of ‘Happy Sobriety’ 44 CREATIVITY AND CONTEXT RENOVATION OF IESE’S Where Ideas Really Come From HEALTH -CARE MEETINGS 45 Paddy Miller and NEW YORK CENTER Diagnosing Health Care Th omas Wedell -Wedellsborg 26 I5TH ANNUAL CONFERENCE OF THE INTERNAIN TIONAL COMMUNITY OF INNOVATION

NEW CCASE PUBLISHERS (ICCP) 6 Broadway Reaches for the Stars YORK FLOOR BY FLOOR THE BRONX 46 THE IESE ConnectingC Th eory to Reality

L`]kapl`^dggj^]Ylmj]kYdYj_]ZgYj\jgge$[`Yh]d$ Julián Villanueva g^^a[]kYf\ogjckhY[]k& NEW YORK CENTER 5 Renovations on IESE’s New York Center are in full swing. The center is QUEENS 28 located on West 57th St in the city's commercial business district and a YOUNGY TALENT PROGRAM and Jorge González few blocks from and .This emblematic building will open its to welcome IESE alumni in New York in Spring 2010. BROOKLYN A WORLD-CLASS % FACILITY L`akkhY[]ak\]ka_fYl]\^gjklY^^g^^a[]kYf\ogjcaf_ khY[]k^gjklY^^$^Y[mdlqYf\j]k]Yj[`YkkaklYflk& L`]F]oQgjc;]fl]jafEYf`YllYfoaddhjgna \] Y ogjd\%[dYkk d]Yjfaf_ ]fnajgfe]fl af Yf 4 `aklgja[ k]llaf_& L`] []fl]j ak dg[Yl]\ afka\] F]o Qgjc k [gee]j[aYd Zmkaf]kk \aklja[l Yf\ NurturingN the Talent kl]hkYoYq^jge;Yjf]_a]@Ydd$Daf[gdf;]fl]j LEADERSHIP AND PEOPLE MANAGEMENT Yf\;]fljYdHYjc&L`])1).Zmad\af_oYkl`] gja_afYd `ge] g^ l`] Dgmak @& ;`Yda^ FgjeYd % K[`ggdg^

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2 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE PEOPLE LIFE

GLOBAL ENTREPRENEURSHIP WEEK IESE Catches Th e Spirit GRADUATION Of Global Initiative 54 THE AFRICA INITIATIVE AT IESE 8TH GLOBAL IESE Promotes Strong Leadership in Africa 58 FRITZ FOLTS (MBA ’91) EXECUTIVE MBA Navigating Risk During a Downturn 60 AWARDS 64 GRADUATION YOU’RE IN THE NEWS 68 AUTHORS 70 Johan Schroeder Fritz Folts delivers keynote address 72

LIFE

WSJ BREAKFAST SERIES Laurence Fink Calls for Global Regulations 76 CHAPTER NEWS 78

Laurence Fink

IESE & YOU

ALUMNI PORTAL Kick-START Your Future 84 PUBLICATIONS Th e New Look International Economic Overview 86

LAST WORD

JUAN C. VÁZQUEZ-DODERO Looking Back to Face the Future 88

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 3 116 116 ALUMNI MAGAZINE

January-March 2010 www.iese.edu

P. Miller - T. Wedell-Wedellsborg J. Villanueva - J.González Blazing the Trail : Where Ideas Really Broadway Reaches IESE Prepares to January–March Come From for the Stars Launch U.S. Campus

GLOBAL ALUMNI REUNION START SPREADING 2010 THE NEWS ALUMNI MAGAZINE www.iese.edu/alumni Magazine 116 Winter December 09-March 10 Index of Companies General Circulation 33,570 International Circulation Abbott Laboratories ...... 45 Ferrovial ...... 49 Richard Ivey 29,125 (Edition in Spanish) ACC1Ó ...... 54 Ford ...... 50 School of Business ...... 46 5,000 (International Edition) Accenture ...... 44 Fundación Banesto ...... 54 Rochester Institute Editor Account-Ability ...... 44 Gas Natural ...... 49 of Technology ...... 39 Antonio Argandoña Active CP ...... 54 Google ...... 28, 54, 78 Ross School of Business ...... 66 Executive Editor Adecco ...... 66 Gordon Institute Russell Reynolds Mercedes Castelló Agbar ...... 49 of Business Science ...... 58 Associates ...... 39 Managing Editor ALM Consulting Limited ...... 58 Harvard Business SDA Bocconi School Aïda Rueda Asian Business School ...... 45, 46 of Management ...... 39 Senior Editor, International Edition Case Center ...... 46 Havas Media ...... 78 Seat ...... 50 Nicholas Corbishley Autoscout24 ...... 54 Henley Business School ...... 39 Serino Coyne ...... 28 Art Director Banco Santander...... 40, 48 IAE Business School ...... 78 Shell ...... 44 Alberto Anda Barclays ...... 40 Iberdrola ...... 49 Siemens ...... 44 ([email protected]) Barclays Wealth ...... 78 IBM ...... 70 Sony Pictures...... 28 Contributors Barcelona Activa ...... 54 IMD ...... 46 Spanair ...... 45 Stephen Burgen Barna Business School ...... 78 INSEAD ...... 38, 44, 46 Stanford Graduate Cristina Aced BBVA ...... 49 Institut des Hautes Études ...58 School of Business ...... 46, 64 Clara Castillejo Berndorf AG ...... 78 ISE Business School ...... 78 Stanford University ...... 64 Alberto Chinchilla BGL Asset Management ...... 58 Japan Business Solutions .....78 Strathmore Tomás Crespo BlackRock ...... 76 Johnson & Johnson ....8, 48, 70 Business School ...... 58 Eve Goldman Boats24 ...... 54 Kodak ...... 8 Strathmore University ...... 58 Ángela Martín Marcella Moohan BP ...... 48 L’Oréal ...... 46 Syngenta ...... 40 Alberto de Olano Brown Forman ...... 68 “la Caixa” ...... 8 T-Solar ...... 54 Javier Pampliega Cambridge University ...... 48 Lagos Business School ...44, 58 Telefónica ...... 49 Kevin Staley-Joyce The Boston Consulting CEIBS ...... 52, 64, 70, 78 Madrid Emprende ...... 54 Larisa Tatge Chemo Group ...... 68 Management Engineers 45, 50 Group ...... 48, 54, 76 Miquel Utset Cisco Systems ...... 39, 48 Mango ...... 48 Triumph...... 46 Editing Secretary Citigroup ...... 40 McKinsey & Co...... 40, 48 Twitter ...... 28 Alejandra Arrocha Clacktion ...... 54 Merck Sharp & Dohme ...... 48 Universal Pictures ...... 28 Photography Color Creations ...... 58 Microsoft ...... 48 Universidad de los Andes .....39 Jordi Estruch Mondi AG ...... 78 Universitat Politècnica Miquel Llonch Graduate School Mongolian University ...... 78 de Catalunya ...... 48 Roger Rovira of Business ...... 8, 66 Motorola ...... 68 University College London ..78 Fotomobil.com Cyberclick ...... 54 Mount Sinai Hospital...... 8 University of Amsterdam .....48 Design and Layout Danone ...... 49 Nestlé ...... 48 University of Michigan ...... 66 Javier Martínez Darden Business New York University ...... 49 University of Navarra ....48, 68 Meanings School ...... 44, 46 Nile University ...... 58 University of Oxford ...... 48 Illustrations Delta Partners ...... 40 Nissan ...... 50 University Luciano Lozano Dreamworks ...... 28 Orascom Construction of Pennsylvania ...... 70 (www.ilustracionesposibles.blogspot.com) EADS CASA...... 48 Industries ...... 68 University of Pretoria ...... 58 Advertising EBC ...... 78 Partnership for University of Tokyo ...... 38 M&N Consulting ECCH ...... 46 ...... 8 University of Virginia ...... 44 Antonio Moré and Sabina Nogués de Trujillo Educational Broadcasting Peugeot ...... 50 Vinus & Brindis ...... 54 C/ Orient, 78-84, 1ª Planta. Of. 14 Corporation ...... 78 Philips ...... 48 Vodafone ...... 40, 52 08190 Sant Cugat del Vallès ENDESA ...... 48 PricewaterhouseCoopers .....52 Walt Disney Company ...... 28 Tel.: 93 544 12 34 EnGrande.com ...... 54 Princeton University...... 48 Wharton School .38, 49, 52, 66 E-mail: [email protected] Ernst & Young ...... 36, 54 Privalia ...... 54 Windward Investment Photo Montage Europe’s 500 ...... 54, 67 Radiometer ...... 72 Management...... 60 Anmar Facebook ...... 28, 39 RCS MediaGroup ...... 52 Worldcom PR Group ...... 68 Printing FCC ...... 8 Repsol ...... 49 Tugrupografi co Published by Estudios y Ediciones IESE, S.L. Index of Alumni Depósito legal B.23.746-1963 ISSN 1138/2333 Th e opinions expressed in the articles published in this Abellán, Josep (EMBA ’07) ...68 Gracia, Xavier (PDD ’06) ...... 68 Poyatos, magazine are solely those of the authors. Articles may Agostini, Luca de (MBA ’06) .68 Guardiola, Pere (AMP ‘05) ....68 Juan Miguel (EMBA ’98) ....68 be reproduced, provided that the original source is Alba, José Ramón (PDG ‘04) 68 Herraiz, Pablo (EMBA ’97) ....68 Rodríguez, indicated. Baón, Luis (EMBA ’06) ...... 68 Jottar, Patricio (MBA ’88) .....78 Charles (PDG ‘06) ...... 68 Carné, Lucas (MBA ’99) ...... 54 Juxon, Rob (MBA ’02) ...... 78 Sinclair, Hugh (MBA ’01) ...... 78 Donnelly, Matt (G-EMBA ’09) .... Martínez, Thirlwall, Oliver (MBA ’01) ...78 72 Roberto (EMBA ’06) ...... 68 Torralbo, José R. (PDG ‘04) ...68 Erceg, John (MBA ’96) ...... 54 Merghart, Uchida, Folch, Imma (AMP ’05) ...... 68 Lorraine (MBA ’84) ...... 78 Masaharu (MBA ’03) ...... 68 Folts, Fritz (MBA ’91) ...... 60 Muelas, Francisco Urgin, Sean (G-EMBA ’03) .....78 Franzini, Mario (MBA ’74) .....78 de las (AMP ‘05) ...... 68 Urien, Alfonso (MBA ’06)...... 68 IESE/University of Navarra Gantumur, Olavarría, Valedomar, Alumni Magazine Tsebdsyreb (IFDP ’03) ...... 78 Lionel (MBA ’75)...... 78 Ramón (EMBA ’03) ...... 68 Avda. Pearson, 21. 08034 Barcelona Tel.: 93 253 42 00 • Fax: 93 253 43 43 García-Hoz, Pérez-Ricarte Vázquez, Cno. del Cerro del Águila, 3 José M. (PDG ‘79) ...... 68 Gonzalo (MBA ’96) ...... 68 José L. (EMBA ’05) ...... 68 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

4 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE

E D I T O R I A L A SPIRIT OF SERVICE, A SPIRIT OF ENTERPRISE

ANTONIO ARGANDOÑA ESE’s mission is to develop leaders who aspire to have a positive impact Editor of on people, fi rms and society through their professionalism, integrity and the Alumni Magazine spirit of service. As a consequence, we aim to infuse a guiding principal in [email protected] Iour participants’ understanding of management: that a company’s mis- sion is to be at the service of its clients, employees and other stakeholders.

It is this same spirit of service that led IESE to open its New York Cen- ter: to better serve our program participants and alumni, and to provide IESE’s unique approach to management education in places where it can have the greatest impact. New York is, without a doubt, one of those places.

On top of that, IESE’s Manhattan address represents a two-way street for the school’s other stakeholders. For example, faculty members’ research will be enriched by greater opportunities to interact with North Ameri- can business leaders. And IESE’s U.S debut further expands the school’s global reach, building on its established presence on four continents.

The Global Alumni Reunion ’09 on October 10-11 in New York was a magnifi cent arena to explain all of these reasons for establishing a campus in the U.S to our most important stakeholders – our alumni. As well as details of IESE’s New York venture, the 1,100 graduates, family and friends that made it to the Big Apple gar- nered insights from the raft of high-level speakers at the event. And for those of you that could not make it, there are updates in this issue of IESE Alumni Magazine.

As mentioned, IESE’s New York center builds on its thriving global activities. One example of this is The Africa Initiative, the umbrella unifying all of the school’s ef- forts to develop the quality of management education on the continent and thus help develop strong business leaders. You can read more on The Africa Initiative in this issue of IESE Alumni Magazine, just one of many articles refl ecting our global scope.

In short, IESE is mindful of the task ahead with the upcoming inauguration of the New York Center. But we are confi dent that, if the school puts itself at the service of its alumni, its program participants, its staff and faculty - those teams of people that make up what we are - IESE’s newest venture will be a success.

6 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE

C O V E R S T O R Y

START SPREADING THE NEWS: THE GAR IN NYC A GREAT SUCCESS

MORE THAN 1,100 ALUMNI AND FRIENDS FLOCKED TO THE BIG APPLE

8 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE gainst a daz- zling city skyline, IESE alumni and friends from around the A world gath- ered in New York City to celebrate the 48th Global Alumni Reunion in October. Never be- fore had our premier annual gathering been held outside Europe, making the occasion even more memorable. At the same time, we had the opportunity to mark another important milestone: the upcoming inauguration of IESE’s New York Center in 2010. Hosted by U.S.-based alumni and IESE faculty members and staff , we had the chance to visit the construction site of the new center, as well as take in the sights and sounds of the Big Apple. We also had the opportunity to visit many of the city’s spectacular art museums guided by knowledgeable experts. But first, the experience kicked off with the reunion’s traditional academic program, featuring a host of high-profile speakers. Over 1,100 alumni, faculty, guest speakers and friends took part in the reunion, which focused on the theme “Reframing the Future of Business.” IESE Profs. Pe- dro Videla and Paddy Miller were academic directors of the program. The famed Waldorf Astoria Hotel hosted the reunion. Among the speak- ers were James D. Wolfensohn, for- mer president of the World Bank, Dr. Valentin Fuster, director of cardiol- ogy at Mount Sinai Hospital in New York, Kathryn Wylde, president & CEO of Partnership for New York City, and Antonio Perez, CEO and chairman of Kodak.

IN SEARCH OF NEW VALUES More than ever, the economy is lin need of “entrepreneurship, free markets and investment,” IESE’s Dean Jordi Canals said in his welcom- ing address. Dean Canals added that the business world is experiencing “a crisis of ethical values.” IESE’s mission of developing lead- ers who can have a deep impact on people, firms and society through

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NYC AND LONDON FACE THE CHALLENGE OF MAINTAINING THEIR POSITIONS AS FINANCIAL CAPITALS KATHRTN WILDE, CEO, PARTNERSHIP FOR NYC 2

integrity and a sprit of service is par- New York City, who off ered insights said. The fi nancial sector contributes a ticularly relevant today, he said. In on the city’s current economic situ- third of all the revenue generated in the addition, the school’s global character ation and future. Wylde pointed out New York metropolitan region. and strong links with business schools that both New York and London face In terms of its recovery, Wylde be- around the world off er the corporate the challenge of maintaining their sta- lieve the city should “hold the line,” world a highly informed perspective tus as global fi nancial capitals. resisting pressure to raise taxes and of globalization. Because of its fi nancial institutions, spending. In addition, there should be “New York is America’s gateway to the a greater focus on supporting the en- NYC: GATEWAY global economy,” Wylde said. When trepreneurial side of the economy. “Up TO THE GLOBAL ECONOMY asked about a possible crisis of values until now big has dominated,” Wylde In a separate session, Matthew in the New York business community, said. The CEO of Partnership for NYC lBishop, American business edi- Wylde said in response that the world added that although the city is a center tor and NY bureau chief at The Econo- blames the city in large part for the for raising venture capital, most of the mist, interviewed Kathryn S. Wylde, current economic situation. The city money ends up funding ventures in president & CEO of Partnership for will pay a price for this perception, she places such as California and Boston.

10 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE 5

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1. Dean Jordi Canals, Bill Layton, Mireia Rius, On a positive note, Wylde said that, Fuster, director of cardiology at William F. Baker, Prof. Eric Weber and contrary to popular belief, crime is not Mount Sinai Hospital, emphasized Antonio González-Adalid 2. Prof. Eric Weber, Joaquín Duato and on the rise in New York City, due in the need to see health care as an eco- Baldomero Falcones part to the city’s state-of-the-art po- nomic priority. He drew analogies 3. Robert C. Lieber 4. Lorraine Merghart and Prof. Nuria Chinchilla. lice system. New York City’s future between the proper functioning of 5. Prof. Paddy Miller rests on its ability to provide services the human heart and the inner work- 6. Prof. Pedro Videla 7. Charles Calomiris, James D. Wolfensohn and to international companies, espe- ings of a business, arguing that, like Prof. Jordi Gual cially those based in the developing medicine, business cannot operate 8. Antonio Pérez and Alan Murray 9. Auditorium of the Waldorf Astoria world. She said that 15 percent of the effi ciently without the circulation of city’s growth over the last fi ve years information. came from foreign direct investment. Similarly, Dr. Fuster drew analo- gies between his medical school LEARNING FROM HEALTH CARE teaching and the instruction en- In an interview with IESE Prof. countered in many management l Pedro Nueno, Dr. Valentin schools today: “The most important

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thing is vertical communication, TECHNOLOGY IS KEY clear that the company already had and... competence in leadership.” Turning to technology, Kodak all the necessary technology to enter Further, Fuster suggested that the lCEO and Chairman Antonio the commercial printing and digital reasons people choose to enter Perez shared his struggle and suc- photography sectors. Perez also res- medical school can be instructive cess in turning Kodak into a mar- tructured the company, reducing its for the business-minded. The “ide- ket leader in the digital sector. “We international workforce from 70,000 al of service” is at the heart of the came with no digital business to to about 25,000. “You cannot chan- medical vocation, Fuster noted, and speak of and now 70 percent of our ge a culture without changing the businesspeople can look for inspira- business is digital,” he said, adding people,” he said. tion from model physicians, who see that Kodak has the largest market Perez offered a three-pronged their patients as their “father and share of digital cameras. approach to late-arrivers to a mar- brother,” rather than a collection of On his arrival at Kodak in 2003, ket sector. The first requirement is numbers and medical readouts. Perez found that the company to have a breakthrough technology. On a practical note, Fuster drew “was doing so well with film they The second is to have an advantage attention to global healthcare crises, were not thinking about doing an- in the supply chain. He pointed out observing that good economics and ything else.” Paradoxically, Kodak that this was easy if you are late to the good health care go hand in hand. first invented the digital camera game, since earlier competitors have Of particular note was Fuster’s em- in 1975 and the company has been most likely already paved the way. phasis on the education of health- working with digital imaging for 30 The last is to have a value proposition care consumers about preventative years. But as Perez said, it is extre- that attacks competitors’ weak spots. lifestyle choices. The question and mely difficult for a company that Perez’s strategy has proved success- answer session with Dr. Fuster was has been making enormous returns ful for Kodak: the company enjoys 130 lighthearted with questions about quarter after quarter to suddenly percent growth quarter over quarter, the health benefits of coffee and divert its resources to a market with the CEO said. wine, and the importance of exer- signifi cantly lower margins. cise. Dr. Fuster argued forcefully, One of his first actions as CEO PERSPECTIVES however, that we ought to adopt the was to carry out a thorough audit the ON THE DOWNTURN idea of “integrated health,” rather company’s technological advances in Three experts presented their vi- than a list of “do’s” and “don’ts.” the preceding years. It soon became lsions of the economic future in

12 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE 5

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the session “Reframing the Econom- ic and Financial Landscape” - James D. Wolfensohn, former president of the World Bank, Prof. Charles Calo- GOOD ECONOMICS miris of Columbia Business School AND GOOD HEALTH and Prof. Jordi Gual of IESE and the CARE GO HAND major Spanish bank, “la Caixa”. IN HAND. Wolfensohn began by noting that DR. VALENTIN FUSTER a recent G-20 communiqué might DIRECTOR OF CARDIOLOGY, mislead some into thinking that our MOUNT SINAI HOSPITAL, NYC economic situation is already begin- 7 ning an upward swing. The commu- niqué notes, however, that the “pro- cess of recovery is incomplete.” 1. Prof. Nueno and Dr. Valentín Fuster Plummeting global GDPs, the Next to take the stage was Prof. 2. Alumni attend academic session former World Bank chief said, do Charles Calomiris of Columbia 3. Prof. Pankaj Ghemawat 4. Kathryn S. Wilde not merely represent a modest ad- Business School. Calomiris is part of 5. Dean Jordi Canals justment in growth. Rather, the scale a 15-member bi-partisan task force of 6. Carlos Rebaza at networking event in Ermenegildo Zegna’s fl agship N.Y. store of the current global shifts in wealth academics charged with studying the 7. Prof. Eric Weber concentration is unprecedented in crisis and putting forward remedies. the modern era. Asian countries such Calomiris argued that the princi- as India and China may account for pal problems facing economic recov- close to 50 percent of global GDP by ery are essentially the result of gov- 2050 if current trends continue. This, ernment policy mistakes. On the one he said, is a “tectonic shift” in econo- hand, the U.S. government’s macro- mic trends. China, for instance, has economic policy created a loose cred- “taken us up on the things we used to it environment. Given that housing do, and has in many cases improved subsidies are delivered via leverage, upon our eff orts.” many consumers were encouraged

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 13 C O V E R S T O R Y

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1. Amaya Morera, Natalia Centenera, Carlos Testor and Mireia Rius 2. Clemencia Inés Restrepo de Tobón PHOTOS & VIDEOS: www.iese.edu/alumnireunion2009

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by lenders to over-leverage their Europe’s readiness for economic you are well-positioned to compete mortgage. Of great consequence, recovery by observing that difficult in their markets. too, Calomiris said, is our lack of balances must be dealt with, such The event’s fi nal session focused a reliable means to measure risk. as economic heterogeneity, timing, on healthcare and infrastructure. Small businesses are also suff ering: and the magnitude of reform. Baldomero Falcones, president they are “dragging very far behind in and CEO of FCC, one of the leading investments, and do not have access GLOBETROTTING European services and construction to credit. They depend on banks, and A session on reframing busi- groups, said that “investing in infra- banks aren’t lending.” lness would not be complete structure is a sound economic poli- Calomiris stressed the need for without a conversation on global- cy,” and emphasized that investment a long-term outlook and solution. ization. IESE Prof. Pankaj Ghe- in this area creates employment, in- Long-term planning will prevent mawat shared data and debunked creases aggregate demand and has a what has thus far frustrated recovery the somewhat popular belief that multiplying eff ect. eff orts: the “misalignment of politi- globalization is an inevitable phe- Joaquín Duato, company group cal will and economic necessity.” nomenon in every sector of busi- chairman of North America Pharma- Prof. Jordi Gual of IESE and “la ness. Ghemawat pointed out that ceuticals, Johnson & Johnson, pointed Caixa” took the stage next, and em- the long-term immigrants only rep- out the misconception that the health- phasized the extent to which some resent 3 percent of the total global care industry is shielded from an eco- European nations have fared worse population. He added that even in- nomic downturn, and observed that than other developed economies ternational voice calls, a seemingly health-care consumption in the U.S. is during the crisis. He also noted their easy flow of international commu- currently being aff ected, with a down- questionable fi tness for recovery. As nication, still only account for 2.5 turn in elective procedures and fewer to the eff ectiveness of the European percent of total calls. Prof. Ghe- physician visits. He argued that “health Union’s actions, Gual argued that mawat advised companies looking care is a pillar of the economic system” trade and monetary policies have to go global that “where you come and spoke about the growing trend for been well-coordinated and highly from has a huge impact on where universal healthcare both in China and effective. Financial market policy, you should go,” and added that with the U.S., but pointed out that broader however, is by far the worst per- large populations, like those of In- coverage must be balanced with con- former. Prof. Gual then questioned dia or China, it is crucial to assess if cern for cost and quality.

14 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE TO THE SPONSORS OF THE GLOBAL ALUMNI REUNION:

MANY THANKS FOR YOUR SUPPORT!

SPONSORS

PARTNER COMPANIES

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 15 C O V E R S T O R Y

16 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 17 C O V E R S T O R Y BLAZING THE TRAIL IESE PREPARES TO LAUNCH U.S. CAMPUS

ESE Business School is or how IESE has helped to develop ness school to establish a permanent bringing to New York its business schools in emerging coun- presence in the U.S., IESE is now set to long tradition of develop- tries impresses the companies we talk share its distinct vision of global busi- ing global leaders and ex- to here in the U.S.,” says Meyer. ness with North American fi rms. ecutives that profoundly And in terms of location, there was and positively impact so- no better place than New York City NEW WORLD, NEW ASPIRATIONS Iciety. At the same time, the for launching IESE’s U.S. venture, lThe New York center will also pro- school aims to strengthen says Eric Weber, director of IESE in vide a base for IESE programs in awareness of its identity and activities New York. other U.S. locations such as the Senior in the United States. “The city’s adaptable nature makes Executive Program Latin America, “With the new building and the it uniquely receptive to IESE’s busi- one of the numerous initiatives IESE Global Alumni Reunion held in New ness philosophy, which will add a new is set to lead on U.S. soil. “People are York, IESE is steadily gaining visibility dimension to the business culture amazed by the international scope in the U.S.,” says Kip Meyer, assistant in North America,” Weber said. “As that IESE has,” says Begoña de Ros, director of Executive Education in the IESE has grown through the years, the director of the program. United States. U.S. has always been a reference point. The program is targeted at experi- As a tangible example of the Strengthening our connections with enced executives and run in collabo- school’s progress, Meyer notes that alumni and client companies in the ration with IAE and IPADE, leading IESE has recently signed an agree- region, as well as expanding our re- Argentinean and Mexican business ment with Wal-Mart International search initiatives from a base in New schools that form part of the school’s for the center’s fi rst custom program York was a logical step to take.” network of Associated Business to begin in 2010. In addition, IESE’s center in New Schools. “Being able to share information York reflects an unprecedented This network, which spans the about the ‘Doing Good, Doing Well’ move in the business school world. globe, also distinguishes the school conference run by IESE MBA students By becoming the fi rst European busi- from others, de Ros said. It gives IESE

18 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE Elisabeth Azra Tina Boada Brankovic Cabanez

Prof. Louis Paul Joseph Cabral Gallagher Kerwin

Kip Prof. Paddy Marie T. Meyer Miller Oates

Stephanie Federico Begoña Ray Riera-Marsá de Ros

Rich Hélène Prof. Eric Sabreen Sostarich-Barsamian Weber

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 19 C O V E R S T O R Y faculty access to invaluable insights on doing business in emerging mar- kets that few management schools have. Though the center aims to serve U.S.-based executives, IESE’s focus remains entirely global in terms of program content, faculty and par- ticipants in its programs, de Ros emphasizes. IESE has mastered the logistical art of leading programs in diff erent geo- graphic locations, having long off ered the Global Executive MBA program with modules in Shanghai, Silicon Valley, Barcelona and Madrid, as well as the Executive MBA with modules in the U.S., Europe and China. Regardless of location, however, the basic character of IESE programs remains the same, she said.

BREAKING THE MOLD The center also off ers a chance to lshare IESE’s unique management approach with fi rms in the region. “One of the primary strengths of IESE Business School has been, and continues to be, its focus on teach- ing that people-centric values should dictate the business environment; the notion at the core of an IESE educa- tion is that we need to be mindful of the ripple eff ect that one individual’s actions will produce for society”, said Hélène Sostarich-Barsamian, U.S. director of development. “IESE’s reputation…for the ex- the tide with its commitment to the “We now have the opportunity to cellence of its faculty and academic New York center given the current make contact with U.S. managers and programs precedes our alumni wher- economic environment. companies directly, and generate ma- ever they are around the globe,” said With the Herculean task of rebuild- terial that is highly relevant to our U.S. Sostarich-Barsamian. ing the economy, one might question stakeholders,” Prof. Miller stresses. Lorraine Merghart (MBA, ’84) the timing of an international busi- said she was “hopeful that IESE will be ness school’s expansion to the United IESE QUALITY ON able to broaden the defi nition of ‘busi- States. While the idea strikes many as NEW TERRAIN ness’ as not simply an entity formed to counter-intuitive, IESE’s Dean Jordi IESE is already making its mark on make a profi t and create shareholder Canals sees it as an opportunity, The lthe U.S. through the programs that value.” In particular, IESE stands to Economist noted in a recent article have been carried out on the continent help develop “both the individual about the New York Center. to date, both in New York and Miami. and the individual’s place within the The opportunity to launch new Rose Mary Cosio, for example, broader society and thereby contrib- programs and carry out rigorous recently embarked on the SEP for ute to a better society,” she said. research directly with U.S compa- Latin America. Cosio serves as vice- IESE is breaking the mold of con- nies will be among the key benefi ts president, investment manager, temporary business, then, by insisting of IESE’s new outpost, notes IESE of Deutsche Bank Trust Company that business be at the service of soci- Prof. Paddy Miller, who has been a Americas. Based in New York, she is ety, not society at the service of busi- part of the New York project from the investment manager responsible ness. The school is also going against the outset. for South Latin America.

20 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE PROF.PROF. MILLER TO KIKICKCK OOFFFF CURRICULA AT NEW YORK CAMPUS WITH SSHORTHORT FFOCUSEDOCUSED PPROGRAM “THE INNOVATION ARCHITECT” INNOVATION FIRST ON AGENDA AT IESE’S NEW YORK CENTER

As IESEIESE reinventsr ticipants think about pockets of innovation itselfitself wwithi its bold innovation and creati- in their companies NeNeww YoYork initia- vity. “Much of the inno- and equip them with tive,tive, iti is fi tting vation industry talks in strategies on how to thatthat the fi rst pro- recycled platitudes: the stimulate creativity gramgram to be hos- real secret is that inno- throughout their orga- tedted at the new vation is more about nizations. During the centercen focuses business culture than process, participants on innova-i it is about brainstor- will develop strate- tion.tion. IESE Prof. ming ideas. A culture gies and a clear action PaddyPadd Miller is of innovation is driven plan on how to infuse toto leadlead the Short by the individual. It’s creativity and innova- FocusedFocused Program instilled in an organi- tion throughout their “The“The InnovationInn zation by small teams company’s culture, Architect:Architect: Creating working together day rather than it being a BreakthroughBreakthrou Compa- to day,” Miller said. solitary activity. nies”nies” at thethe new cam- puspus on MayMay 5 and 6. “The Innovation Ar- FOR MORE INFORMATION: chitect” Short Focused The Innovation Architect New York, 5-6 May TheThe programprogra aims to Program will help www.iese.edu/cbc changechange thethe way par- participants tap into

Cosio serves high-net-worth to me. It fi ts my needs perfectly,” said for Media and Entertainment (IME), individuals, families and selected Cosio. based at the New York Center. “New institutions with a fully-integrat- The various components of the York has become the Mecca of the ed management service in the program allow her to sharpen skills in media universe not only because of International Division for Private areas which she is not often directly its wealth of creative talent, but also Wealth Management at Deutsche involved in, such as accounting, she because of its importance as a hub Bank. Unlike many other banks, said. “That’s a skill I want to be much of advertising, TV and fi lm produc- Deutsche Bank weathered the re- more familiar with because of fi nan- tion and international media dis- cent fi nancial crisis well and did cial decisions and the impact they tribution,” said IME Director Rich not avail of government funds. have.” Sabreen. “In addition, downtown “When I learned about IESE’s Leadership is another area cov- Manhattan’s Silicon Alley has be- SEP in Miami, I thought: this is ered in the program that has a direct come an incubator for many new perfect. It has the curriculum I impact in her work environment, she media businesses.” need and at the same time I will said. “In this program, I am learning a The center is within walking dis- not need to be away from my new perspective and developing more tance of the headquarters of some work that much. And, of course, creative ways of leading people.” of the top media companies in the the fact that the program focuses world, including Time Warner, on helping senior executives with MANHATTAN’S MEDIA ALLEY Hearst, Viacom, News Corp, the New specifi c interests in Latin America An important ally in IESE’s activ- York Times and NBC Universal. And just made it all the more attractive lities in New York is the Institute many non-U.S. media and entertain-

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 21 C O V E R S T O R Y ment companies maintain signifi cant operations in the vicinity, he said. The IME currently offers two Short Focused Programs for execu- tives: “Advanced Digital Media Strat- egies” and “Branding in Media and Entertainment.” “IESE’s international framework promotes global thinking among program participants, enabling them to think beyond their own local is- sues, to broaden their outlooks, and potentially to expand their media and entertainment businesses and products into new markets and areas sentations, dining and casual inter- York City will have to reinvent itself of operation around the world,” said action. Two 70-person classrooms to recover from the economic crisis. Sabreen. provide the largest learning spaces,” New York is a “very competitive and “We’re building IME as a ‘brand’ he explained. energy-driven environment. People that stands for world-class executive “The existing building is a land- feel a need to excel, compete, and learning and innovation in the me- mark structure, almost 90 years old, challenge themselves and existing dia and entertainment industry. And so much of the fabric and all of its sys- norms,” Takahira says. we’re not only doing this by the pro- tems needed to be replaced. Working IESE, in a sense, is reinventing it- grams we off er, but also by the content within older buildings, respecting self in North America by bringing to we create,” he said. history and enhancing it, while still America its own set of experiences working within a budget, is always a and ideas. “Unless you have positive, A LANDMARK MADE FLEXIBLE challenge,” said Aliaga-Kelly. successful examples in society, noth- While some may have assumed Gallagher notes that the building’s ing will change,” says Takahira. IESE lthat the new campus would history is the principal reason the site aims to be that positive, successful amount to just a few rented offices, was selected by IESE. paradigm for New York by building a many are impressed that it will be “Business school classrooms re- more holistic understanding of world launched as a fully-functioning aca- quire a large column-free space for un- business. demic enterprise, symbolic of IESE’s obstructed views and need adequate The school has already sought to new role in American business. ceiling height,” Gallagher said. “New reach out to the New York business “The building is a physical testi- York City’s tall buildings are all typi- community through special events mony to the extent of IESE’s commit- cally supported internally on forests such as the Viewpoints Executive ment to the U.S. project,” said Paul of columns. This structure was built Breakfast Series, with the Wall Street Gallagher, U.S. director of finance in 1916 as a school for Russian ballet Journal and BCG. and administration. “It’s amazing to dance and deliberately had large, open, Aimed at senior executives, these see the shift in people’s understanding high-ceilinged performance spaces events feature live interviews with of what we are doing when they learn which have returned to their original high-profi le global business leaders. about it. They initially assume we will function as instruction (and in some Participating speakers at the events have just a few offi ces, and then they sense, performance) spaces,” he said. have included hedge fund manager fi nd we will have an academic center Gallagher adds that “programs for George Soros, Jeffrey Immelt of for teaching and research with faculty management in the creative indus- General Electric and Louis V. Ger- based here,” he added. tries, off ered by IESE with IME, the In- stner, former CEO of IBM IESE’s new home is “designed for stitute for Media and Entertainment, Business leaders stand to benefi t fl exibility, as we know from our work- will continue the building’s link with from IESE’s new venture, a singularly place practice that the business world the arts and culture.” bold eff ort to push business ethics to is a dynamic one, and optimizing the forefront, and to refocus the pur- space is critical to increasing business ENGAGING NEW YORK pose of business toward the good of efficiency,” said principal architect With the economy in dire need society. On top of that, its interna- Ambrose Aliaga-Kelly of Gensler Ar- lof recovery and consumer trust tional scope is second-to-none. chitects, which is leading the center’s levels plumbing new depths, An- IESE’s New York Center looks to renovation. drea Takahira (SEP Miami ‘09) have a lasting, positive impact on its “Rooms in the new building are re- cites New York as a demonstration students and management culture. confi gurable, and have been designed of business carried out well – and In the words of one alumna, it aims to to support seminars, meetings, pre- not so well. Some believe that New “teach business students to think.”

22 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE ARE YOU THINKING OF THE NEXT QUARTER OR THE NEXT GENERATION ?

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PADDY MILLER f there is one thing that fluence was replaced by a more in- Professor of Managing People characterizes our pursuit of dividualistic way of thinking. During in Organizations, IESE Business School innovation, it is the search the Renaissance, the word “genius” for creative geniuses and slowly came to mean the creative THOMAS their brilliant ideas. Most person and not just the ethereal WEDELL-WEDELLSBORG researchers agree that inno- spirit that advised him or her. And Innovation Consultant and vation is the key to long-term in modern times, when research Managing Partner, 13 MBAs survival and success – so into creativity dawned in the 1950s, whereI do we fi nd those new ideas? It is starting with the psychologist J.P. a puzzle we must solve, and the future Guilford’s famous call for studies of Many creative ideas are of our companies seems to hang in the creativity, the individual-centered infl uenced by the places balance. Often we put our money on notion of genius was very much we live or work in. As individuals. Maybe we’re wrong. dominant. In a telling parallel to ear- ly studies of leadership (an equally IESE prepares for the To understand the future of cre- elusive phenomenon), many cre- inauguration of its new ativity, it is illuminating to take a ativity researchers focused on the look at its past. When the denizens study of the Great Men of creativity, building in New York City, of Caesar’s Rome spoke of a “ge- scrutinizing the lives of Einstein, it’s worth recalling that nius,” they were not referring to cre- Picasso and other luminaries to dis- immersing yourself in ative individuals as such. Rather, the cover what was special about them. Romans believed that ideas came to a new culture is one of us from a guiding spirit, an external The individual-centered focus the best ways to become being who whispered wise thoughts has since been supplemented by into our mortal ears, similar to the other approaches, but one lesson more innovative, not just Greek concept of a muse. In their from these studies is clear: when it for people, but also for time, people like Archimedes were comes to creativity, not everybody not thought of as geniuses; their spe- is equal. Research into personality organizations, including, as cial talent, rather, was their ability to differences has shown that some luck would have it, business attract the genius, the muse, so that people are much more likely than schools. they could be the vessels of divine others to come up with new ideas or inspiration, the chalice that could inventions. Specifically, as measured capture the insights of the gods. This through the widely used Big Five notion – that creativity comes from model of personality traits1, people the outside – can even be seen in the who score high on the trait referred etymology of the word “inspiration,” to as “openness to experience” are which originally comes from the be- more likely to be creative. lief that ideas were quite literally blown into our minds, inspired by There is reason to believe that the gods, carried on a divine breath. our understanding of creativity and genius is about to come full circle, INNOVATION AND CHANGE • LEADERSHIP AND Gradually, however, the percep- going back to the ancient way of PEOPLE MANAGEMENT • tion of creativity as an outside in- thinking about creativity as an ex-

26 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE ternal factor. The classification of attributes such as openness never quite touches on what we intuitively understand – someone has a gift for creativity, an ability to combine a mixture of intelligence and instinct and solve a complex problem. And that gift is influenced more by con- text than it is by character. It is less about who you are, and more about where you are. It is about creative spaces.

One of the most fascinating pieces of evidence for this was discovered in 2009 by researchers William Maddux and Adam Galinsky in their study of how living abroad af- fects creativity2. Conducting a num- ber of creativity tests, Maddux and Galinsky found that people who had been living abroad (expats) were sig- nificantly more likely to find inno- vative solutions to problems, such as negotiating a complex deal. The really interesting thing about their study was that they controlled for personality factors including open- tinational we have worked with ex- ness. The results showed that people pressed this clearly: IT IS LESS who had not lived abroad tended to be less creative than expats, even if “I believe diversity is one of the key ABOUT WHO they were equally high on the openness things to promote. Our current leader- YOU ARE, AND trait. It was not the personality trait ship team is very diverse, with people as such that made them creative; it hailing from Turkey, Ireland, Pakistan, MORE ABOUT was the behavior it caused – the act Colombia, the U.S., Spain, Belgium and of exposing themselves to new ideas France. And that is how it should be. If WHERE YOU and new ways of living and working. you only want to work with clones of yourself, it is going to be hard to make ARE. IT IS ABOUT In other words: Creativity is not things happen.” just about who you are; it is equally CREATIVE about the environments you choose The idea that creativity is about to live in. And this makes the re- seeking out new spaces is, of course, SPACES. search operational for executives, also relevant for IESE and our cur- because, while it is very difficult rent global expansion. By coming to to change your personality or your New York, we are not just bringing employees’ personalities, it is often world-class management education much easier to do something about to the United States (in case anyone the environment you live in. hadn’t noticed, the United States is not exactly short on good business To increase the likelihood of get- schools). What we are really doing is ting good ideas, hire and promote changing ourselves, changing IESE 1. For more on the Big Five model, see Goldberg, people who have lived abroad, and yet again and making ourselves more L.R. (1993): “The Structure of Phenotypic Personality Traits,” American Psychologist, 48. send your employees on longer creative, by the simple act of mov- stays in foreign divisions. A week in ing to a new place. And what better 2. Maddux, William W. and Galinsky, Adam D. Shanghai will not suffice; it’s got to place than New York City, one of the (2009): “Cultural Borders and Mental Barriers: The Relationship Between Living Abroad and be a year or more. The president of most culturally diverse cities in the Creativity,” Journal of Personality and Social an innovative and successful mul- world? Psychology, 2009, Vol. 96, No. 5, 1047-1061.

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 27 I D E A S INNOVATION BROADWAY REACHES FOR THE STARS

JULIÁN VILLANUEVA earing in mind that And what challenges does it cur- Professor of Marketing, the average price rently face? IESE Business School of a Broadway musical is $70 and NEW PRODUCTS FOR NEW that few have fared AUDIENCES JORGE GONZÁLEZ well on Wall St. l Innovation: The Show Professor of Marketing, over the last two Must Go On IESE Business School B years, many feel While the financial crisis has that the sector has done an excellent threatened almost all industrial job of making the period from May sectors, the inability to innovate 2008 to May 2009 its highest-earning has proven an even greater threat. Broadway has managed season in history. Broadway, however, has shown over the last decade that it can launch to hold its own despite the The area of Manhattan that falls around 35 new shows a year. There is chill winds that have been between 8th Avenue and Broadway always a fresh off ering. So the show blowing in these diffi cult and 41st and 53rd Streets is home to must go on. And it must go on with the densest concentration of the- receipts that are high enough to pay economic times. IESE Profs. aters on the planet. Every day of the the lease, wages and promotional Julián Villanueva and Jorge year, the theater district attracts an costs while hoping that something average of almost 34,000 people ea- better isn’t waiting around the cor- González unveil the secrets ger to pay a total of more than $2.5 ner. When audiences dwindle, so of Broadway’s success in million in tickets and dining, turn- does the producer’s confidence in ing into a giant human the show. this article, which draws on anthill under the bright lights of its their recent case study, huge billboards. Broadway is a Darwinian environ- “E Schubert Organization: ment; at least that’s what most the- However, this was not always the ater producers will tell you, given The Show Must Go On.” case. In 1993, the same theaters that that more than 60 percent of their are now playing to healthy houses investments lose money. The stakes were attracting audiences that were involved can range from $2 million 38 percent smaller. Bearing in mind to produce a new stage play to the that prices are now 81 percent high- $20 million it costs to put on a show er than they were 15 years ago, this like Shrek: The Musical. means that Broadway has practically tripled its turnover without increas- Reaching a Wider Audience: ing its capacity. Not bad, huh? What Long Live The Lion King! ENTREPRENEURSHIP • DECISIONS ANALYSIS • can we learn from this industry dur- In 1993, Broadway’s tills were INNOVATION AND CHANGE ing its period of constant growth? lyet again ringing to tunes from

28 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE two successful musicals impor- ted from London’s West End: The Phantom of the Opera, with the eponymous hero’s tortured love for Christine, and Miss Saigon, a musi- cal inspired by Puccini’s Madame Butterfly. Fifteen years on we find that the most popular shows are Wicked, a Universal Pictures pro- duction that recounts a story pa- rallel to the one told in The Wizard of Oz, and the Walt Disney musical The Lion King, with songs by Sir El- ton John.

This comparison shows how the development of a product aimed at more family-based audiences has reaped financial rewards for the industry. The Walt Disney Com- pany, whose three Broadway shows brought in receipts of $153 million in 2008, provides the clearest ex- ample of this.

Apart from bringing a new audi- ence to Broadway, Walt Disney’s success has attracted other enter- tainment giants such as Universal, Sony and Dreamworks.

Broadway now offers a wider range of shows than it did 15 years ago. A resident New Yorker from the who goes to an average of 12 shows a year will be more interested in buying a ticket for Race, the latest play by David Mamet, while a family with chil- dren who come to the Big Apple for a weekend will take the opportunity to see Mary Poppins.

Another way of bringing Broad- way to a wider audience is to in- vite famous Hollywood actors to perform in a stage play for a few months. Jude Law, Catherine Zeta-Jones, Daniel Craig, Sien- na Miller and Hugh Jackman are just some of the stars who trod the boards in 2009. In short, while some bemoan the over-proliferation of popular entertainment and the ab- sence of more profound works, oth- er industry players simply respond that “a ticket is a ticket.”

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 29 I D E A S

THE THE MARKETING CHALLENGE: at discounts of up to 50 percent. A COMPLEX ENVIRONMENT Perhaps you have stood in line at DEVELOPMENT Not long ago, there was a clear the “tkts” stand in Times Square, lstructure to the way a new thinking that this was the place to OF A PRODUCT Broadway show was marketed: ads buy tickets, and were pleasantly in The New York Times, and perhaps surprised to find that the price was AIMED AT some on the radio and TV. There lower than you expected. Or per- was a public relations campaign and haps you got to the head of the line FAMILY-BASED previews to allow the critics to have only to discover that you could only their say. People bought their tic- buy tickets for that day and there AUDIENCES kets at the theater box office. They were none left for the Broadway saw the show and told their friends show you wanted to see. HAS REAPED about it. Word of mouth, discount coupons in Times Square and hotel How To Improve Channels and FINANCIAL concierges did the rest. Promotional Activity? It’s true that a ticket is a ticket, REWARDS FOR The current period of growth lbut what if someone who only on Broadway has coincided with a has $100 to spend is faced with a THE INDUSTRY. multitude of changes in marketing. price of $120 on Broadway.com, Adapting to this new environment doesn’t know that there are che- is one of the greatest challenges that aper channels available and ends the theater industry has faced. up not buying. And what about those people who are willing to pay Managing sales channels and prices higher prices but find themselves The three main theater owners in the “tkts” line, disappointed l(Shubert, Nederlander and Juja- with the long wait but ultimately mcyn), control 82 percent of all seats, perhaps happy with their 50 per- along with a large part of the distribu- cent discount? In short, how can tion network: the box offi ces at their the design and management of dis- own theaters and direct sales via Te- tribution channels be matched to lecharge and Ticketmaster. However, pricing policy? if you search for “Broadway musicals” in Google, the fi rst page that appears Approximately one in four tick- is Broadway.com, a company which, ets are sold at a discount, and the despite appearances, does not belong average discount is between 35 to these operators but is instead an and 40 percent. The industry uses independent broker that will sell you “tkts” as the main channel for price tickets at way above the list price. Ne- reductions, but it also distributes vertheless, many people buy their tic- coupons in the areas around Times kets here thinking that it is the main Square, as well as circulating e-mail ticketing channel. lists. Another creative approach is the “Kids Go Free” campaign, The role played by brokers and aimed at attracting families to see resellers is a controversial issue in musicals. Nevertheless, list prices the management of ticket sales. On usually remain fixed, though there the one hand, they buy a lot of tickets. is of course some variation depend- On the other, they can generate consi- ing on where you are sitting (up to 5 derable anger among theatergoers, as different prices in a theater like the these resellers buy up tickets for the Majestic) or whether you go at the most popular shows and then re-sell weekend. them at higher prices. For example, the markup added by Broadway.com However, the theater industry is around 30 percent. does not use techniques like yield management the way some hotels Another important source is do, whereby different prices are “tkts”, a channel that sells same-day charged depending on the season tickets to under-subscribed shows and how many days in advance you

30 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE buy your ticket. Both industries In Search of Lost Audiences share two particular characteris- Although there is no questio- tics, though: high fixed costs and lning the theater industry’s suc- low variable costs. cess in developing new audiences over the last decade, there is still Added to the confusion with the work to do. For a start, there is a very ticket distribution channels, the low turnout among people between heavy promotional activity and the the ages of 18 and 34. proliferation of websites that publish the various discount codes (such as According to Coyne, “This age broadwaybox.com), one could ex- group is more interested in other pect greater price sensitivity among forms of entertainment and they consumers. But the fact is that the also don’t have the money.” Some industry has been able to increase time ago, however, many people the average price of tickets in recent were using similar arguments re- years despite a slight drop in audience garding under-18s, but Disney has numbers, something that would indi- demonstrated that you can extend cate that theater managers, or at least the industry’s reach with the right some of them, have been doing their product and communications. homework. In addition, Broadway remains Communication: Connecting to very expensive for the majority of Fragmented Audiences the population. While it is true that To complicate things a bit fur- a seat at the back of the dress circle lther, ways of communicating can cost $25 with the right discount, with prospective audiences are the average cost for two people can changing radically. For example, du- easily exceed $200 if you are not ring the 1980s, a TV commercial or savvy on ticket distribution chan- an announcement in The New York nels and also dine out before the Times could attract audiences to a show. As a result, the majority of particular musical, but these media today’s theater audiences are high- no longer offer any guarantees. It’s earning university graduates who not enough to have a good product. are in New York City at 7 p.m. You need a much more sophisticated communications strategy. Over recent years, Broadway has expanded to embrace new audiences As Nancy Coyne, CEO of Serino by capitalizing on the constant flow Coyne, Broadway’s leading adver- of tourists to the Big Apple and ge- tising agency, observes, “When we nerating a business centered around launched Phantom, radio and TV the theater district that is worth worked instantaneously. Now ever- several billion dollars. Opening on yone is creating a new world without Broadway still remains a dream for advertising. The only thing that has most people in the theater world. not changed is street advertising [e.g. buses and billboards], which is exactly This capacity to attract talent the same as it was before.” The indus- that is willing to innovate is the dri- try is now trying to launch shows using ving force that keeps the theaters Facebook, Twitter, Google and other alive, the old playhouses that take digital media. The role of public rela- a break each morning to get ready tions agencies is also changing. While for the moment when the lights go mainstream media’s opinions, parti- down and the actors take the stage. cularly the critics’, remain important, On the other side of the orchestra they are becoming increasingly less so, pit, an expectant audience awaits. especially among younger audiences, As long as this still happens, Broad- and agencies are trying to strengthen way will continue to breathe. Is CASE STUDY AT IESE PUBLISHING the word-of-mouth eff ect via new so- this process becoming increasingly M-1232-E Shubert Organization: The Show Must Go On cial networks. complicated? You bet it is!

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 31 I D E A S LEADERSHIP AND PEOPLE MANAGEMENT HEALTHY PEOPLE, HEALTHY COMPANIES

STEVEN his issue of the IESE levels of their employees and there- POELMANS Alumni Magazine, fore society at large. Professor of Managing People in Organizations, which highlights IESE Business School the school’s new In the chapters I authored for the home in New York recently released book Workplace In this article, Prof. Steven City, is a fitting Psychological Health published by place to tackle the Edward Elgar (2009), I discuss some Poelmans discusses his T subject of wellbe- of the warning signs of work-related new book, Workplace ing in the workplace. New York is stress and address a new approach to- Psychological Health, and often singled out for its unparalleled ward leadership – one that is focused work environment, rapid pace and on at IESE Business School. implications of workplace energy. wellness issues for WELL-BEING But what is a healthy work envi- AND LIFE SATISFACTION companies. ronment and how can it be created? Over the last fi ve to 10 years, re- Both companies and researchers lsearchers have come to the real- are becoming increasingly con- ization that modern diseases are no cerned with this question. A recent- longer primarily caused by viruses and ly released report by the American bacteria. The causes of death in the Heart Association (AHA) noted population today are more often relat- that cardiovascular disease (CVD) ed to work and lifestyle habits, i.e., the kills 864,000 Americans each year, way we actually do things. Coronary making it the leading cause of death heart disease, for example, has been in the United States. CVD is strongly clearly linked to certain behavioral linked to workplace stress and, ac- patterns. And the primary reasons cording to the AHA report, 25 per- for absenteeism in the workplace are cent of women and 18 percent of back pain and stress, which are related men around the world suffer from to the pressures of the workplace and high levels of job stress. In addi- everyday work habits. tion, the report states that “the so- cietal benefits of a healthy employed It may seem counterintuitive, but a population extend well beyond the larger income does not ensure fewer workplace.” stress-related health problems. By having more money, you can afford By analyzing the causes of work- better insurance and better doctors. place stress and taking steps to im- You can also eat better-quality food. LEADERSHIP AND PEOPLE MANAGEMENT • plement workplace wellness pro- Yet the correlation between health INNOVATION AND CHANGE • grams, firms can boost the health levels and income is surprisingly low.

32 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE What researchers have discovered angry quickly when you perceive in- is that health levels are inextricably competence or slowness in the people HEALTH linked to the way people work and the around you. This kind of hostility has way they see the world in general. been identifi ed as a separate risk fac- LEVELS ARE tor for coronary heart disease. There are several factors that have INEXTRICABLY a direct impact on happiness and well- WORKAHOLISM: being in general. The fi rst factor is a THE WARNING SIGNS LINKED TO THE pleasant life. In this regard, having an Some researchers use the number interesting job or a satisfying relation- lof hours spent working as a crite- WAY PEOPLE ship can be helpful, but these factors rion for identifying workaholism. In can be temporary. As soon as confl ict our research, however, we have found WORK. arises or the positive situation comes that this criterion is not the only key. to an end, satisfaction can disappear. We have found examples of pro- fessionals who work very Researchers have observed that sta- long hours and still ble levels of wellbeing are more often have a very satisfying created by having an “engaged” and life and feel very “meaningful” life. This means having well. So what’s go- either work or some kind of activity ing on there? outside of work that you enjoy thor- The key is oughly and that is linked in some way the way to the strengths and talents you have. you

A meaningful life requires having a job that is not just interesting, but contributes directly toward some- thing you consider important. One of the key rewards of having a meaningful life is that you are better equipped to tolerate obstacles in life, particularly those that affect your per- sonal equilibrium.

Advances in science have clearly demonstrated the link between physical and psychological wellbeing. One of the best cases for demon- strating this is coronary heart disease, which is the number-two cause of death in the world.

One of the risk fac- tors of coronary heart disease and heart attacks is type-A be- havioral patterns. Specific kinds of type-A behavior are feelings of hostil- ity and impatience toward the environ- ment. This includes be- ing easily upset and getting

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 33 I D E A S

work. What seems to characterize teach at IESE Business School. This work addiction is a lack of control or means seeing them as individuals an obsessive inability to not work. who also have families, unique goals Another indicator is a lack of pleasure and ambitions. derived from work. Work is regarded as something unavoidable and, al- Following this thinking, leaders though you feel guilty about should focus on helping members of working so many hours, you the organization develop as people. TIPS FOR ESTABLISHING can’t seem to stop it. This means going beyond simply es- WELLNESS PROGRAMS tablishing objectives, checking to see Very often you can iden- whether they have been met, and then In its report, the American Heart tify an addiction through ab- rewarding or demoting people based Association (AHA) provides specifi c stinence symptoms, i.e., the on results. recommendations for establishing behavior you exhibit when workplace wellness programs. The recommendations include creating a you cannot do a certain thing It means leaving behind an auto- social and physical environment that is or take a certain substance. In cratic style of leadership that disre- conducive to healthy behavior, creating the case of workplace addic- gards the human aspects of people. incentives for people to modify their tion, if you become nervous It’s about asking how to help people lifestyles, and taking into account the characteristics of today’s highly diverse or agitated when you cannot develop the competencies they need, workforce. work, this may be a sign of not only to reach their objectives, but workplace addiction. People also to be more effi cient and satisfi ed Moreover, companies are urged to may also criticize you for individuals in the workplace. implement worksite wellness programs that “help working families balance working too much. The ulti- work and family commitments and mate proof of work addiction The development of a workplace incorporate policies around childcare, is when working hard begins wellness program can be a critical elder/dependent care, telecommuting and to damage the quality of your component of the process. Since fl exible work schedules.” decisions and relationships, they require resources and time, and you are either unaware of workplace wellness programs are this situation or don’t care. particularly challenging for small companies to create. Yet wellness THE RELUCTANT HARD WORKER programs have a proven track record The reluctant hard worker is a per- for reducing CVD and are an ideal op- lson who is under pressure to work portunity to help improve the world’s very hard, but does not enjoy the work health at large. and/or would prefer not to work so hard. This often happens when people A key trend we are seeing now is the are moved within an organization like personalization of management edu- pieces on a chessboard, without being cation. At IESE, this idea is incorpo- consulted, or when they are required rated in the classroom, so that we not to do a job they are not prepared for. In only talk about accounting, market- these cases, the person has to accept ing, fi nance, operations and logistics. the situation, although it may cause We also actually talk about questions great anxiety and suff ering. such as: what’s your purpose in life? Where do you want to go? To what In the current economic environ- extent have you been taking care of ment, such cases may become more yourself, which is a condition for tak- prevalent as people stick with jobs ing care of other people? We talk about they do not like because they feel they time management, life-work balance don’t have other options. and stress management.

THE REMEDY: A NEW All of these issues are ultimately LEADERSHIP STYLE related to the health of people, and An important step towards im- therefore, companies today. As stated lproving wellbeing in the work- in Latin, mens sano in corpore sano. place is viewing professionals as peo- MORE INFORMATION: ple in the fullest sense, rather than In the same way, we can say: healthy www.circ.ahajournals.org/cgi/content/full/120/17/1725. merely employees. This is what we people mean a healthy organization.

34 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE )%3%?X?GENN?PDF   I D E A S

NEW INDEX RANKING COUNTRY ATTRACTIVENESS WHERE BEST TO INVEST?

team of IESE fac- tant to them: economic activity; the A new study ulty members and depth of capital markets; taxation; other collabora- investor protection and corporate by a team of tors have created a governance; the human and social Abroad international environment; and entrepreneurial IESE professors index that measures culture and opportunities. countries’ attractiveness to investors and reseachers in Venture Capital (VC) and Private DYNAMIC MARKETS Equity (PE) limited partnerships. One notable pattern emerges assesses the A total of 66 countries spanning six lin the survey: countries scoring continents are included in the sur- higher for investor protection and attractiveness of vey. The index reveals contrasting corporate governance all earned levels of opportunity and diverse high marks, since these criteria lead over 60 countries challenges in today’s post-recession to liquid and effi cient capital markets. economy. These markets, in turn, foster a dyna- to venture capital The Global Venture Capital and mic environment that facilitates deal- Private Equity Country Attractive- making fl ow and exit opportunities. and private ness Index was developed by IESE The aim of the survey is to con- Business School’s International tribute to investors’ challenge of equity investors. Center for Finance Research in deciding where to allocate VC and collaboration with Ernst &Young. PE. It also aims to help policymakers The project was led by IESE Profs. as they seek to influence economic Alexander Groh and Heinrich conditions and strengthen the vital- Lichtenstein. ity of their own regions. “As limited “This is the fi rst time that VC/PE partners consider where to allocate attractiveness has been measured to their capital, and PE and VC funds such an extent,” said Groh. look to make the right investments Countries that fared well in the themselves, the investing landscape ranking were those that have excelled will inevitably change.There will un- in enhancing “competition, open- doubtedly be comparative winners ness and professionalism” within and losers, and the Global VCPE their borders, he said. Country Attractiveness Index could The United States topped the prove to be a valuable tool in helping ranking, and was therefore used as funds navigate through this uncer- the world benchmark. The other tain time,” said authors Simon Per- countries rounding out the top fi ve ry, Alexander Reiter and Gil Forer were Canada, the United Kingdom, of Ernst & Young in a recent article. Australia and Hong Kong. MORE INFORMATION: The index was based on six crite- www.vcpeindex.iese.us ria that investors cite as most impor-

36 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE TOP 10 UNITED STATES: MOST KING OF THE HILL The United States is The entrepreneurial the leading magnet spirit and culture of U.S. COMPETITIVE for venture capital society also remains and private equity a critical factor. “This COUNTRIES investment, due in part to mentality leads to greater the country’s common law innovation, employment system which provides and, in the end, both fl exibility and prosperity,” said Prof. protection for business Groh, one of the study’s transactions. authors.

1. ECONOMIC ACTIVITY

6. ENTREPRENEURIAL 100 CULTURE AND 2. DEPTH OF 80 CAPITAL MARKET OPPORTUNITIES 60 40 20 0 0 20 0 40 50 60 80 100 100 150 200 3. TAXATION 250 5. HUMAN AND SOCIAL ENVIRONMENT UNITED STATES 4. INVESTOR PROTECTION AND CORPORATE GOVERNANCE GERMANY

WINNERS AND LOSERS 1. UNITED STATES 2. CANADA The study – which is can be traced to its 3. UNITED KINGDOM based on data going back accession to the EU and to 2000 – reveals that the expansion of its 4. AUSTRALIA China, Poland and India capital markets through 5. HONG KONG have taken major strides the establishment 6. SINGAPORE 7. JAPAN over the last fi ve years of the Warsaw Stock 8. SWITZERLAND in boosting their appeal Exchange. Among those 9. NETHERLANDS to VC and PE investors. countries that have slid 10. GERMANY China’s high ranking in investor attractiveness stems in large part in comparison with other from political economic countries in recent years decisions, while Poland’s are Kuwait, Latvia and increased attractiveness Oman.

ALSO FEATURED IN THE STUDY

Basic Facts Comparison within Peer VCPE-Ranking Group Key Factors Separate VC and PE Performance Indices SWOT Analysis

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 37 I D E A S HIGHLIGHTS

Th e Emotion in the Dangers of Entrepreneurial Process Early Fiscal CHRISTOPH ZOTT AND QUY HUY The role of “aff ect” – emotion or desire as infl uencing Tightening behavior – plays a major role in the success of start- ups, say IESE Prof. Christoph Zott and Quy Huy, PROF. JAVIER DIAZ-GIMÉNEZ AND R. ANTÓN BRAUN professor of corporate strategy at INSEAD. Based on their fi ve-year fi eld study, the authors argue in a re- IESE Prof. Javier cent paper that fl edgling entrepreneurs must appeal Diaz-Giménez and to stakeholders’ hearts as well as R. Antón Braun of their minds. They can accom- the University of plish this through a variety Tokyo note some of aff ective actions. striking similarities “Contrary to convention- between the current al wisdom, we found that Spanish and Japanese successful founders did recessions in a recent not take a centralized, paper. One message secretive, commanding that emerges from approach to their busi- their research is that ness, as is often used when a tightening in fi scal fi rms are in a vulnerable policy that occurred in stage,” they said. Japan in 1997 may have MORE INFO: IESE INSIGHT been implemented too early – a potential IN EUROPE, CSR RESISTS FAMILY OFFICES lesson for other ONE-SIZE-FITS-ALL BEAT THE CRISIS countries, including ANTONIO ARGANDOÑA AND H. VON HEINRICH LICHTENSTEIN Spain. WELTZIEN HOIVIK AND RAPHAEL AMIT MORE INFO: IESE Insight IESE Prof. Antonio Argandoña Despite the land H. von Weltzien Hoivik leconomic provide an overview of their work- crisis, 15 percent ing paper addressing CSR in Europe of family offi ces in a recent IESE Insight article. The turned a profi t demands for socially responsible in 2008-2009. A study by IESE and actions have been around since Wharton reveals how family offi ces before the Industrial Revolution. have been able to weather the storm. In Europe, they say, CSR has been The survey looked at 167 family of- infl uenced by historical, cultural, fi ces around the world. Of the families political and socio-economic driv- who took part in the study, all of them ers and conditions specifi c to dif- manage at least $100 million that can ferent countries. Therefore, there be invested, and nearly half of those is no way to reach a unique, precise who participated in the study manage defi nition of CSR. more than $1 billion. MORE INFO: IESE INSIGHT MORE INFO: IESE Insight

38 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE INSTITUTIONAL INVESTORS’ INFLUENCE Who Are the LIMITED IN THE BOARD ROOM PASCUAL BERRONE AND RUSSELL REYNOLDS ASSOCIATES Customer The fi nancial crisis has 60 percent of the board lput the spotlight on chairs they interviewed the way boards of direc- stated that they exercised Evangelists? tors are managed. For this little or no involvement. JULIÁN VILLANUEVA AND GIULLERMO ARMELINI reason, a new study on the That fi gure is even more structure of these boards, surprising when taken based on interviews with alongside institutional Word-of- around 30 institutional in- investors’ belief that mouth (WOM) vestors and board chairs, boards do not meet their makes for timely reading. expectations regarding communication Of note is the surpris- equity, independence is today’s most ingly low level of direct or and management control potent marketing indirect infl uence that in- issues. stitutional investors have The study also points tool. For this on corporate governance. out that institutional reason, marketing According to the authors investors often do little executives, as well of the study, IESE Prof. more than pay lip service Pascual Berrone and Rus- to issues of Corporate as researchers sell Reynolds Associates, Social Responsibility. in the fi eld, are focusing more than ever on how to manage WOM and COMPANIES COME UP SHORT ON determine the value of customers’ SOCIAL NETWORKS referral value (CRV). EVENY KÁGANER IESE Prof. Julián Villanueva and Facebook has over 320 fully exploit social net- Guillermo Armelini of the Universidad lmillion users, outstrip- works. de los Andes have created a new social- ping the entire U.S. popula- The study, based on 100 network-based methodology for tion of 304 million. Despite interviews in 20 companies that, a recent study by and directed by IESE Prof. measuring CRV, discussed in an IESE IESE, Cisco, the Rochester Eveny Káganer, found Insight article, “Who Are the Customer Institute of Technology that three-quarters of the Evangelists: What Are They Worth?” and the Henley Business companies used social School reveals that many networking sites to some MORE INFO: IESE Insight fi rms lack the know-how to extent and half used blogs.

IESE INSIGHT SHINES SPOTLIGHT ON TRUST

The third edition of the management IESE professors Pablo Cardona review IESE Insight has been and Josep M. Rosanas. This edition published, off ering a timely focus of IESE Insight also suggests some on trust. Among the leading authors simple yet powerful strategies for tackling the issue are: Robert Solow, attracting investors. Other features winner of the 1987 Nobel Memorial include a business case on the British Prize in Economic Sciences; Sandro motorcycle brand, Triumph, and Castaldo, director of the Marketing an exclusive interview with the Department at the SDA Bocconi American venture capitalist Franklin School of Management in Milan; and “Pitch” Johnson.

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 39 C R O S OS R OI A D S EMBRACING THE FUTURE As the recession bites across the globe, MBAs need to be more proactive than ever in their job search. The school’s MBA Career Forum, one of the largest of its kind in Europe, is an ideal opportunity for IESE MBAs to jumpstart their future.

ith the theme “Embrac- The MBA Career Forum is the largest recruitment ing the Future,” the 2009 event of the year at IESE and, according to the latest fig- MBA Career Forum at- ures, one of the largest in Europe. With the participation tracted representatives of companies such as Citi, McKinsey, Vodafone, Barclays from 44 of the world’s Capital, Delta Partners, Banco Santander and Syngenta, leading companies on as many as 40 percent of IESE MBAs find a job via the W the lookout for their ex- forum. ecutives of the future. According to Alejandro Herrera, director of IESE’s The 3-day event, organized by IESE’s Career Services Career Services, the event was once again a resound- team, took place on IESE’s Barcelona campus from Oc- ing success. “Though companies in general are taking a tober 26 to 28. slightly more conservative approach, many of our stu-

OF IESE CAREER • 86 percent of MBA graduates fi nd employment within three A B C months of graduating SERVICES • MBA Career Forum attracts over 40 leading companies

40 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE dents are already going through the second round of in- who added, “IESE’s MBA students are an extremely valu- terviews,” he said. able talent pool. Their broad professional experience and international backgrounds are particularly appealing to TOP CALIBER TALENT our company.” The participating companies said the forum off ers a Delta Partners was also at the forum to recruit both lnumber of attractive features. As Isabel Markwitz of full-time employees among second-year MBAs and fi rst- Syngenta said, “IESE is one of the leading business schools year interns. According to Rachael Jennings, of the in Europe and the format of the Career Forum allows us to company’s recruiting team, “Delta Partners’ integrated screen as many students as possible in just one day.” business model, industry specialization and focus on Markwitz’s opinions were echoed by Anne Hiede- emerging markets have provided tremendous opportu- mann, a member of McKinsey & Co.’s recruiting team, nities for growth and expansion. We are confi dent that

OF IESE CAREER • Helps students improve their interviewing skills through mock A B C interviews SERVICES • Teaches students effective career management strategies

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 41 C R O S OS R OI A D S

SPONSORS

Banco Santander • Barclays Capital • Citi • Delta Partners • McKinsey&Company • Syngenta • Vodafone

PARTICIPATING COMPANIES

Accenture • Arthur D. Little, A.T. Kearney • Bain & Company • Booz & Company • The Boston Consulting Group • Deutsche Post DHL Inhouse Consulting • Ernst & Young • EuroPraxis Consulting • everis • Oliver Wyman • Roland Berger Strategy Consultants • Siemens Management Consulting • Bank of America and Merrill Lynch • Banco Sabadell • BBVA • Deutsche Bank • European Bank for Reconstruction & Development • The Financial Services Authority • HSBC International Management • J.P. Morgan, Morgan Stanley • Nomura International • Abbott • Amazon • Bertelsmann • Celsa Group TM • EDP Renováveis • Guardian Industries Corp. • Johnson & Johnson • Medtronic • Novartis Pharma • Roche • Royal Dutch Shell • SC Johnson • Unibail Rodamco • International Committee of the Red Cross - ICRC

IESE can bring our company the talent needed to build on graduates across an extremely broad range of sectors and our successful history.” industries. For example, recruiting fi rms and organiza- Company presentations were organized to allow stu- tions spanned from the International Committee of the dents to fi nd out about opportunities in a diverse range of Red Cross to Amazon. This is thanks to the highly proactive sectors. Second-year MBAs attended face-to-face meetings sales campaigns conducted by the Career Services team. and interviews with recruiters, while first-year students “There is less of a need among schools located in the sought summer internship opportunities. world’s most important business hubs, such as London and Throughout the year, IESE’s Career Services team orga- New York, to attract the top recruiters; they usually come di- nizes a series of similar events to help students keep track of rectly to you, which is usually why there is a much narrower the latest opportunities in their chosen fi eld. These services representation of sectors and industries at these schools,” are particularly valuable during times of recession, when said Herrera. opportunities on the ground are scarcer. “By contrast, here at IESE we are mindful of the fact that “Graduates need to adjust to the new environment. we need to go that little bit further in order to attract the top They need to be more proactive than ever,” said Herrera. recruiters, and have therefore been much more proactive “The Career Services team is determined to give students than most schools.” all the support they need. We are teaching them eff ective The representation of a wide range of sectors at the career management strategies, while also helping them MBA Career Forum is also a refl ection of the broad inter- improve their networking skills and identify good career ests of IESE’s faculty and the strong general management opportunities.” In the latest MBA rankings published by focus of the school’s MBA program. “We are convinced The Economist, which IESE topped, the publication cited as of the need to attract a broad range of sectors far beyond one of the school’s major competitive advantages its abil- the two dominant recruiting industries, banking and con- ity to fi nd internship positions and jobs for its students and sulting,” said Herrera.

42 JANUARY-MARCH 2010 / No. 116 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.

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EABIS CONFERENCE Toward a Model of “Happy Sobriety”

The key to creating a sustainable leconomy is reinventing how we combine happiness with a more sustainable way of consuming. This was the key recommendation made by Bruno Berthon, global managing director of strategy, growth and sus- tainability at Accenture, as part of what he dubbed “a model of happy sobriety.” The strategy expert was speaking during the opening session of the 8th annual colloquium of the Euro- pean Academy of Business in Soci- ety (EABIS), held on IESE’s campus in Barcelona on September 21-22. Berthon also highlighted the need to create new measures of eco- nomic performance to complement GDP, as recently proposed by the Commission of the Measurement of Peter Loescher, CEO and president of Siemens Economic Performance and Social Progress, headed by Prof. Joseph E. Stiglitz. Siemens was recently recognized The session was moderated by During the session’s keynote by the Dow Jones Sustainability In- Mark Wade, former Shell execu- speech, Peter Loescher, CEO and dexes as a global leader in sustain- tive and member of the supervisory president of Siemens, identified ability for its role board of EABIS. four “megatrends” that must be in pioneering green The second day addressed in the coming years if technologies. Loescher identifi ed of the EABIS con- the world economy is to achieve One example is four main ference featured sustainable growth: demographic its involvement in “megatrends” that an absorbing panel change, urbanization, globalization the new clean en- must be discussion on gov- and climate change. ergy photovoltaic ernance and organi- power plant in Be- addressed. zational leadership, SIGNS OF PROGRESS neixama in South- with the participa- With regard to climate chan- eastern Spain. tion of Jordi Ca- lge, Loescher pointed to com- nals, dean of IESE; J. Frank Brown, pelling evidence that some of the GROWING ROLE OF BRICS dean of INSEAD; Enase Okanodo, world’s largest economies and big- Also among the speakers was dean of Lagos Business School, gest polluters are already beginning lSimon Zadek, managing part- Nigeria; and Patricia Werhane, to heed the call for change. ner and director of AccountAbility, senior fellow and chair of Darden The Obama administration has who warned of the rapid growth of Business School of the University directed $80 billion of the U.S. stim- state-owned companies and sov- of Virginia. ulus budget toward green economy ereign wealth funds in emerging Chris Marsden, chair of the initiatives, while China is showing a countries such as China, Russia and trustee board of the Business and growing interest in energy-efficient Brazil, and their increasing role in Human Rights Resource Centre, solutions. the global economy. moderated the session.

44 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE HEALTH-CARE TECHNOLOGY AND PHARMACEUTICAL MEETINGS CONTINUOUS EDUCATION Spanair DIAGNOSING Flies High HEALTH CARE with New Terminal As the political debate on health- lcare policy took center stage in “Barcelona deserves better con- the United States, health-care ex- lnections to the world,” said Fe- perts converged on IESE in October rran Soriano, president of Spanair, and November to discuss the key at a Continuous Education Session challenges facing the sector. at the Barcelona campus on Octo- Renowned health-care expert Re- ber 21. Soriano was referring to the gina E. Herzlinger of Harvard Busi- recent inauguration of Barcelona ness School was one of the speakers airport’s new south terminal (T1), at IESE’s 16th Annual Health Te- which will almost double its capaci- chnology Industry Meeting, which ty to 55 million passengers. Spanair took place on the Madrid campus was the first airline to operate from on October 20. IESE Prof. Pedro the new terminal. Nueno organized the event. Prof. Regina E. Herzlinger of HBS Among the topics addressed GATEWAY TO THE WORLD were aging populations, immigra- “The city has grown so much in tion and changing lifestyles. The l recent years that its airport can potential for new technologies to now justify operating as a genuine help prevent, rather than diagnose, international hub offering a full ran- diseases and significantly reduce ge of services,” he said. The airport’s overall health costs, were also on director, Fernando Echegaray, also the agenda. spoke at the event. Echegaray said In her presentation, Prof. Her- that the abundance of services for zlinger discussed the U.S.’s $2 travellers in the new terminal will trillion annual health-care expen- be the key to its success. Barcelona diture and the range of options airport’s T1 has a 5,000 m2 space for currently being considered in the frequent flyer lounges, 47 stores and debate on health-care reform. Her- 30 eateries, including one Michelin- zlinger argued that the Swiss mo- starred restaurant. del is viable for the United States to follow. IESE Prof. Pedro Nueno PROMOTING BARCELONA ABROAD PHARMEMERGING The new airport hub will su- MARKETS Back in 2006, the U.S. accoun- l pport IESE’s efforts to promo- Meanwhile, experts speaking ted for one half of total growth in te the city on the international sta- lat IESE’s 3rd Annual Pharma- the pharma industry, said Adrian ge following an agreement between ceutical Industry Meeting, held on Grecu, the commercial director the Barcelona city council and the November 5 on the Barcelona cam- for China, Russia and India at Ab- IESE Alumni Association. pus, urged pharmaceutical compa- bott Laboratories. Today, one half The two institutions agreed to nies to revisit their current business of total growth is expected to come work together to promote the city models and gear up to capitalize on from pharmemerging markets. around the world, especially in the world’s rapidly growing “phar- Organized by IESE Prof. Pedro strategic markets such as New York memerging” markets, particularly Nueno, the event also included the City, where the Barcelona city coun- China and India. participation of Reinhard Vocke, cil already has offices. Other countries set for major a co-owner of Management Engi- IESE will, of course, be inaugura- growth are Brazil, India, South Ko- neers, and numerous leaders in the ting its own center in New York in rea and Mexico,the experts noted. pharma industry. Spring 2010.

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 45 C R O S OS R OI A D S CONNECTING THEORY TO REALITY IESE hosts this year’s annual conference of the International Community of Case Publishers.

Triumph, the British manufacturer of custom motorcycles, is the focus of one of the new cases published by IESE in 2009. The case was prepared by Profs. F. Iniesta and J. Villanueva, with J. Mitchell.

ESE recently hosted the 5th annual confer- IESE employs the case study method widely in all of ence of the International Community of its programs because it believes the method is the most Case Publishers (ICCP), which attracted eff ective means of teaching strategic management skills. representatives from the world’s 20 lead- One of the main advantages of using this methodology is ing academic case study publishers. Also in that it allows students to become active participants in the attendance were senior research directors learning experience. I from a number of top international business As José R. Pin, a professor of Managing People in Or- schools and institutions, including Harvard ganizations and Business Ethics and a veteran case study Business School, Darden, Stanford GSB, the Asian Busi- instructor, said, “Adults learn primarily about things that ness Case Center and INSEAD. interest them. Their active participation in discussions At IESE, as at Harvard Business School, the selection about real-life cases that have a bearing on their everyday and preparation of cases is subject to a rigorous quality- experience makes the case study method both interesting control process in order to ensure that utmost quality and fun.” is maintained. However, as IESE Prof. Sandra Sieber explained, “It “Establishing a process that guarantees high-quality is not just a question of discussion for discussion’s sake. cases combined with a high standard of case teaching The discussion is enriched only when it proceeds from makes all the difference,” said Christine Ecker, ex- an in-depth analysis of the situation under discussion as ecutive director of research at IESE and head of IESE well as from eff ective teamwork and the expert direction Publishing. of the professor.”

OF RESEARCH • IESE is the leading producer of cases in Spanish A B C • IESE distributes, through IESE Publishing, case studies prepared AT IESE by Harvard, Darden and Richard Ivey Business School

46 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE IESE IS ONE OF THE WORLD’S LARGEST PRODUCERS OF MANAGEMENT TEACHING MATERIALS CASE STUDIES AT IESE

Each year IESE Publishing Christine Ecker, IESE’s exe- TOP CASES produces around 100 case cutive director of research. 2009 studies and 50 technical IESE only publishes AéroTec Systèmes’ notes. Many are available cases that have previously Triumph: Marketing Navigateur: A Travel in English and Spanish. been tried and tested in British Steel (A) Experience from Out of IESE Publishing currently class, which is an effective The KLM Approach to This World has a catalog of more means of guaranteeing Alliances Rafael Nadal: the Cham- than 25,000 documents, quality, not only for Nike Football Team pion and the prepared by faculty at internal use, but also for Sports: Agility as an Person respected business schools distribution. Engine for Growth such as Harvard, Darden IESE’s faculty members LPP Reserved: Growth and Richard Ivey School of are prolifi c producers of Strategies of a Fashion Business. cases and technical notes. Retailer in Central and “Most of IESE In fact, as a result of their Eastern Europe Publishing’s clients are output and the school’s re- Goodyear Dunlop business schools and search alliances with pres- Europe: The Priva- consulting fi rms. However, tigious business schools in te Label Decision we also have a number the U.S., Europe and Latin of private clients that use America, IESE has esta- the cases to enhance their blished itself as one of the understanding of specifi c world’s largest producers business contexts,” said of business cases.

Paddy Miller, professor of Managing People in Or- the ICCP was founded, its membership has expanded ganizations at IESE, compared the role of the professor to include other respected academic institutions in the in a case discussion to that of a referee: “the professor U.S., Europe and Asia. makes sure that students approach the issue at hand at IESE itself is a driving force in improving case qual- an intellectual level that is challenging for them.” ity and the teaching of cases worldwide. The Interna- Furthermore, the direct participation of the manag- tional Faculty Program, launched in 1992, is aimed at ers involved in the company under discussion, both in introducing the case study method to faculty members general and teamwork sessions, helps create a highly in- from schools throughout the world, including many in teractive forum in which all participants can exchange emerging countries. their own experiences. Directed by Prof. Javier Santomá, the 4-week resi- “This helps reinforce the learning process, engages dential program also helps participants develop new the interests of participants and brings them closer to ideas for curriculum and course design for implemen- the case at hand,” said Prof. Pin. tation at their home institutions. The ICCP began in 2005 as an informal meeting be- “The program offers a complete academic experi- tween Harvard Business School and Ivey in North Amer- ence for business management scholars. It helps them ica, and IESE, ECCH, IMD and INSEAD in Europe. The develop their personal careers at their respective home group’s mission is to become a leading platform for the institutions, while also helping improve the prepara- promotion of the case method, as well as the dissemi- tion, writing and teaching of case studies throughout nation of the schools’ shared message and goals. Since the world,” said Santomá.

OF RESEARCH • IESE Publishing has a catalog of more than 25,000 documents A B C • You can keep up-to-date on the latest cases published by IESE AT IESE through IESE Publishing’s Newsletter and Twitter account

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 47 C R O S OS R OI A D S

IESE YOUNG TALENT PROGRAM Nurturing the Management Talent of Tomorrow High-potential young graduates embark on IESE’s MBA Young Talent Program.

Fahey Kathryn Sheble, Hoy reers of some of the most exceptional taking up their posts at their respective lKwan Lam, Juana Galíndez university students, while also nurtur- companies the YTP participants vis- and Aashish Nawal are four of the 35 ing the talent companies will need to ited IESE’s Barcelona campus in July, young university graduates beginning thrive in the years to come. where they learned about the school their careers in the safe knowledge Some of the participants, with an av- and met fellow classmates, attended that they have a seat reserved for them erage age of 23, have already embarked academic sessions and used the case in the fi rst class of IESE’s 2013 MBA on the fi rst phase of the program, which study method. program. The high-potential gradu- involves spending two years working ates of the fi rst intake of IESE’s Young and gaining experience at one of the WOMEN OF TOMORROW Talent Program come from countries participating companies. One important feature of the far and wide including the United “The Young Talent Program has lprogram is the high proportion States, Mexico, India, China, Greece provided me with a major stepping- of female participants, who repre- and Columbia. stone as I make the transition from sent almost half of the cohort. Also The Young Talent Program, university to the working world,” said of note is the broad representation launched by IESE in 2009, is a new ini- U.S. program participant Fahey Kath- of university graduates from around tiative aimed at supporting the careers ryn Sheble, who studied international the world, including Cambridge, Ox- of talented young university graduates economics at the University of Navarra ford, Princeton and the University of from all over the world. Early signs in- and is now working for participating Navarra. dicate that the initiative has been a no- company L’Oréal. “I think that being Students interested in applying table success. part of the YTP can give applicants an for the YTP can do so during their Attracting and retaining talent is important edge and for me it has been a junior or senior year at university. If a crucial challenge for any company great facilitator in my fi nding a job.” selected, they spend two years gain- seeking to survive in today’s highly One of the participating companies ing experience at their respective competitive global economy, espe- is BP. “We view the YTP as an excellent company and then begin their MBA cially during challenging times. This opportunity to attract high-quality at IESE. On graduating, the students is why IESE’s Young Talent Program is young candidates,” said Pedro More- head back to their company to put all seeking to support the professional ca- no, HR manager at BP Spain. Prior to they have learned into practice.

THE YOUNG TALENT PROGRAM AT A GLANCE

UNDER SUCCESSFUL YTP PARTICI- PARTICIPANTS GRADUATES CANDIDATES PANTS BEGIN RETURN TO 1 APPLY TO 2 WORK FOR 3 FULL-TIME 4 PARTNER PROGRAM TWO YEARS MBA COMPANIES

PARTNER COMPANIES

The Boston Consulting Group • BP • Celsa Group • Cisco • EADS CASA • Endesa • Johnson & Johnson • L’Oréal • Mango • McKinsey & Company • Microsoft • MSD • Nestlé • Philips • Santander Group

48 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE 1ST CORPORATE REPUTATION CONFERENCE Reputation Management: Crucial in Downturn

The economic crisis is having l a negative impact on the repu- tation of business in general, but it will have a particularly dire effect on companies that have a weak re- putation, said Charles Fombrun, managing director of the Reputa- tion Institute in Spain, at the in- augural edition of the Corporate Reputation Conference held on IESE Business School’s Barcelona campus on October 15. The event was sponsored by IESE’s Center for Business and So- ciety in collaboration with the Re- putation Institute and the Foro de Reputación Corporativo (fRP). In addition to invited speakers, IESE IESE Prof. Guido Stein and Charles Fombrun, founder of the Reputation Institute (RI) Profs. Joan Fontrodona, Vicente Font, Guido Stein, and Antonio Argandoña also took part. Repre- lue. A strong reputation can also lower way in which firms respond to the sentatives of firms such as Danone, costs. needs of employees in moments of Agbar, BBVA, Telefonica, Ferrovial, While a strong reputation has crisis, since “people are the essen- Iberdrola, Gas Natural and Repsol always been an important factor tial nucleus of any organization.” were on hand to discuss key repu- for corporate success, it takes on The second variable is the com- tation challenges. even greater importance in a dour pany-client relationship, since economic context. firms must pay even more atten- THE ECONOMIC VALUE However, the tion to the added OF REPUTATION function of reputa- value of their pro- lCharles Fombrun, founder of tion extends beyond It takes 20 years ducts in times of the Reputation Institute (RI) pure economic va- to build a recession. Finally, and a former professor at Wharton riables, noted IESE’s firms must take and Stern, discussed the research Dean Jordi Canals reputation and fi ve into account what his organization has carried out on during his address to minutes to ruin it. society expects of the effects reputation can have on the conference. To- them in areas such fi nancial results. day more than ever, as education, pro- Following research conducted in firms must work to fessional training 27 countries, RI developed the repu- build their reputations in order to and immigration. These three areas tation management tool RepTrak TM, go beyond being mere “commer- must be taken into consideration which measures seven core areas of cial” entities and become fuller so- when testing the quality, solidity reputation: products and services, in- cial enterprises. and solvency of a firm’s reputation novation, workplace, governance, citi- Canals noted three variables in the long-term, he said. zenship, leadership and performance. that are key for firms’ long-term As Fombrun said, quoting investor Research suggests that a strong repu- reputation and which are becoming Warren Buff ett: “It takes 20 years to tation aff ecting public perception can increasingly important in today’s build a reputation and fi ve minutes to improve a fi rm’s fi nancial market va- uncertain context. The first is the ruin it.”

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 49 C R O S OS R OI A D S

24TH AUTOMOTIVE INDUSTRY MEETING EUROPEAN CAR INDUSTRY SHIFTS GEARS

Juan Llorens, Matías Carnero, Prof. Nueno, James Muir, José Montilla, Fumiaki Matsumoto and Dean. Canals

eading figures from Speaking about the future of GROWTH MARKETS the automotive sec- the European car industry was Dr. Future growth in demand, tor gathered at IESE Bernd Gottschalk, former presi- lGottschalk said, will almost cer- on November 24-25 dent of the German Association of tainly come from emerging markets, Lto participate in the the Automotive Industry (VDA). in particular China and India, as the school’s 24th annual Gottschalk predicted that the mature markets of North America, Automotive Industry Meeting. most important innovations in the Europe and Japan begin to stagnate. Guest speakers included senior sector in the coming years would European carmakers, meanwhile, managers of some of the world’s bring higher fuel efficiencies, will need to keep their production biggest carmakers, including Ford, greater productivity and increased costs down as fierce competition Seat, Nissan and Peugeot. vehicle safety. from companies such as India’s Tata

50 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE off er consumers fi nancial incentives THE ECONOMIST RANKING to swap their older models for new ones. However, as Gottschalk pointed IESE MBA Top out, “sales are still down by 10 million units and European governments are of the Class scheduled to end these programs as soon as early next year.” lIESE earned the top spot in The Economist 2009 full-time MBA GOVERNMENTS TAKE THE WHEEL ranking. The other schools in the top Gottschalk’s fellow guest speaker fi ve spots are IMD, Berkeley, Chicago lRichard Viereckl, a partner at the and HBS in second, third, fourth and German consultancy firm Manage- fi fth position, respectively. ment Engineers GmbH, stressed that This is the third time the school has one of the most important consequen- achieved the highest position in the ces of the recession has been the much publication’s ranking; a remarkable greater role of Western governments achievement considering that The in the industry. Economist fi rst launched its annual “Governments in the U.S. and “Which MBA?” ranking only eight many other countries have adopted a years ago. very powerful stakeholder role in the Speaking on a podcast featured industry,” he said. However, for this on The Economist’s website, the increased stakeholder role to pay di- publication’s business editor, Bill vidends, governments should press Ridges, cited as one of the main automotive companies to address a factors behind this success the range of problems, including over- school’s ability to “fi nd other sectors administration, over-capacity, com- where it can place its students.” plex structures and incomplete post- These include less traditional merger integration. sectors for MBA graduates such as real estate, not-for-profi t and A TURBULENT SECTOR government. Francisco Pérez Salinas, after- lsales director for Seat, reminded participants that the sector has al- SOCIAL TRENDS INSTITUTE ways been beset by periods of radical change. “The automotive market has always been a rollercoaster ride. We Professionalizing can expect many changes between now and 2020.” Occupations As evidence of the volatility of the automotive sector, Pérez Sali- lThe culinary profession has nas pointed to the way the fortunes demonstrated how something as of leading car firms have waxed and routine as cooking can also be the waned in the past: “Six of the top 10 subject of professionalization, said carmakers in 1950 were no longer in IESE Prof. Marta Elvira during her the top 10 in 1970.” address at the conference “Care and and Japan’s Toyota begins to raise Ultimately, the survival and suc- Professions in a Globalized World,” price sensitivity among European cess of European carmakers hinges organized by the Social Trends consumers. on their ability and willingness to in- Institute (STI) and held in Barcelona By far the biggest challenge facing novate, said Pérez Salinas, quoting on November 5-7. the automotive sector is overcapacity. Einstein: Prof. Elvira identifi ed the major In the wake of the fi nancial crisis, sales “Imagination is even more impor- factors involved in an occupation’s are down by 15 million cars. tant than knowledge because knowl- professionalization. These include To re-stimulate vehicle sales, gov- edge is limited.” increased organization of knowledge ernments across Europe have fol- IESE Prof. Pedro Nueno led the (development of universitites), lowed Germany’s example and have 2-day program of roundtable discus- workplace structure and internal launched scrappage schemes, which sions and talks. divisions of labor.

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 51 C R O S OS R OI A D S AGENDA

Th e World in 2010 MADRID FEBRUARY 1 Daniel Franklin, executive director of The Economist and editor of the annual publication The World in 2010, will be speaking alongside IESE Prof. Juan J. Toribio in a session titled “The World in 2010.”

MEETINGS place at IESE’s campus in Madrid on June 1. 1st IT Management Meeting To learn more about social network- 16th Meeting of the ing, mobility, outsourcing and cloud Telecommunications Sector computing, be sure to attend this IESE’s campus in Madrid will host meeting on March 3 at IESE’s campus this meeting of June 16 and 17. The in Barcelona. The central theme will event will be co-organized by the be “Confronting e-business Center PwC&IESE and the Challenges IESE’s Public-Private Sector Research of the 21st Center. Century Using PROGRAMS Technology.” 14th Food and Beverage Sector Meeting PMD New York Rebuilding the sector’s future will The third module of this program will be the central focus of this year’s take place at IESE’s New York City edition of the Food and Beverage campus from May 10-14. Participants Sector Meeting, to be held at IESE’s will learn how to manage change and Barcelona campus on May 27. develop corporate strategies that create value for shareholders. 1st Innovation Management Meeting SEP for Latin America “Working Together Effectively to Participants of the Senior Executive Innovate” is the central theme of this Program Miami will gather from March industry meeting which will take 22-26 for the third module of the place on March 10 at IESE’s cam- program, whose central theme will be pus in Barcelona. Participants will “Enhancing Business Performance.” discuss, among many other topics, Among the issues covered will be self- how to build a culture of innovation leadership, entrepreneurship, innova- within their organizations. tion and corporate fi nance.

12th Luxury Brands Meeting Global CEO Program for Learn about strategies to help raise Latin America the value of luxury brands during The third edition of this program, aimed this meeting on April 14 at IESE’s at high-ranking senior managers work- campus in Barcelona. The theme of ing for companies in Latin America, the meeting will be “Reinventing gets under way on April 11 at IESE’s Prestige.” campus in Madrid. In May, participants will study for the second module at 6th Annual Meeting of the Wharton School in Philadelphia and will Banking SectorThis new edition of attend the program’s closing module in the banking sector meeting will take June at CEIBS in Shanghai.

52 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE DOING GOOD INTERNATIONAL & DOING WELL CASE COMPETITION BARCELONA FEBRUARY 26 AND 27 BARCELONA FEBRUARY 18-20 The seventh edition of the Doing The world’s top business schools will be Good and Doing Well conference participating in the 15th edition of this will adopt the theme “From Niche competition which tests participating stu- to Mass Market: Taking Responsible dents’ ability to work towards a business Business to the Next Level.” solution on a relevant and current case.

SHORT FOCUSED Develop Your Communication PROGRAMS Skills: It’s How You Tell Them!. Madrid, April 20-22 Based on extensive practice with vid- Achieving Operational Excellence. eo analysis and individual feedback, Barcelona, March 2-5 this program prepares you to become New approaches for optimizing the an effective public speaker. Partici- Save the Date value-chain process. The program ad- pants learn how to establish credibil- WILLIAM F. BAKER dresses how to fully align operations ity and gain commitment from their MADRID, FEB. 12 with overall business strategy, and audience, as well as gain confi dence in explores innovative ways of maximiz- their public speaking. ing effectiveness in today’s global Bill Baker, the CEO of the context. Getting Things Done. Educational Broadcas- Barcelona, May 18-21 Branding in Media and Entertain- The Getting Things Done program ting Corporation (EBC) ment. New York, April 20-22 shows business leaders how to in the U.S., is to speak at a Develop your plan of attack through identify sources of power within their research-based action learning, includ- oganizations and use this information breakfast event organized ing case studies and group exercises, to effectively infl uence others and by IESE’s International from the premier marketing faculty of drive strategic change. The program is the Kellogg School. The program helps led by Stanford University Prof. Jef- Research Center for Media executives enhance their brand savvy, frey Pfeffer, a world-renowned expert Companies (CEIC) at the from positioning for online platforms on management, leadership and hu- to creating global brand concepts. man resources. Madrid campus.

THE INNOVATION ARCHITECT: FROM DIGITAL THINKING TO CREATING BREAKTHROUGH DIGITAL DOING: BUSINESS IN COMPANIES A WEB 2.0 WORLD GRADUATIONS NEW YORK BARCELONA MAY 5 - 6, 2010 JUNE 8 - 11, 2010 MBA The more than 200 students of This program showcases Blogs, online social networks, the 45th MBA class will celebrate how to unlock innovation micro-blogging, mobile apps and their graduation on May 7, by implementing a proven other Web 2.0 applications have together with their families and framework and securing the become a central part of the online faculty members. appropriate conditions to consumer experience. Meanwhile, nurture innovation. It is a must- companies of all sizes, from a wide EMBA BARCELONA attend program for those leaders range of industries, are now getting who are in need of boosting serious about understanding The third class of the Barcelona innovation through a turn- how this new hyper-connected EMBA will graduate on May 14. key solution. Participants will collaborative environment learn how to tap into pockets of relates to their business. This EMBA MADRID innovation in their companies program uses a rich blend of case The graduation ceremony for and develop strategies studies, research reports, hands- the 18th class of the Madrid for stimulating creativity on exercises and interactive Executive MBA will take place on throughout their organizations. discussions. May 27.

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 53 P E O P L E

GLOBAL ENTREPRENEURSHIP WEEK IESE CATCHES THE SPIRIT OF GLOBAL INITIATIVE

ork, per- Erceg was speaking at the first of a series of break- sever- fast meetings held at IESE November 16-21 as part of ance, ef- Global Entrepreneurship Week. During the meetings, fort and successful entrepreneurs spoke candidly with IESE positive students about their companies and experiences. think- During his presentation, Erceg said that his com- “ ing” are pany’s philosophy is based on the simple concept of the main providing pleasant, clean and affordable rooms for keys to achieving entrepreneurial success, according to around €30 a night, a business model that he is unwill- American entrepreneurW and IESE alumnus John Erceg ing to sacrifice or compromise despite the company’s (MBA ‘96). After spending the last six years sacrificing recent growth. everything for his company’s success, Erceg has firmly “Obviously we want to grow and expand our business established EnGrande.com as one of the leading hotel each year. We want to improve our service by adding accommodation search engines in Europe. “During the tools that help make searches easier for our customers first few years I worked more than 10 hours a day, six and we would love to be better placed on Google. But, days a week and I didn’t even pause to think about it,” above all, we want to continue to perform well by focus- said Erceg. ing on doing the things we know how to do.”

54 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE A global initiative, GEW included activities in 80 countries on six continents. IESE’s Center for Family- Owned Business and Entrepreneurship (CEFIE) co- ordinated the 200 GEW activities that took place in GEW AIMS AT INSPIRING A Spain, placing the country fifth in terms of number of events organized (for more infomation visit www.iese. FUTURE GENERATION OF edu/CEFIE). ENTREPRENEURS WHO A GLOBAL MOVEMENT GEW aims at inspiring a future generation of entre- HAVE THE POTENTIAL TO lpreneurs who have the potential to create innova- tive and sustainable firms and make a positive impact CREATE INNOVATIVE AND on their communities. Events organized in connection with the initiative SUSTAINABLE FIRMS. ranged from large-scale competitions to small networ- king gatherings such as the series of breakfast meetings at IESE.

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 55 P E O P L E

IESE CELEBRATES FEMALE ENTREPRENURIAL SPIRIT IN CHINA

As part of IESE’s mission All three women are to bolster entrepreneurial members of an asso- activity around the globe, ciation of female entre- Prof. Nuria Chinchilla preneurs headed by Shi moderated a special event Qingqi herself. Their in Madrid in September fascinating stories, along honoring three out- with those of 15 other standing female Chinese women, were researched entrepreneurs. by author Julia Pérez- Zhang Hao, Sue Yuehuan Cerezo (AMP ‘97). Her aim and Shi Qingqi are at was to open the eyes of the vanguard of the new the West to the growing generation of female busi- role of Chinese female ness leaders in China, and business leaders, whose the subject of a new book. examples of determina- They run three leading tion, inner strength and companies and are an desire to succeed against inspiration to countless all odds remain little Chinese women. known outside of Asia.

PASSION: DRIVING ENTREPRENEURSHIP Santiago Peribáñez was another entrepreneur l participating in the breakfast talks. He returned to IN THE FASHION INDUSTRY his home country of Spain from France to focus on de- veloping franchise networks. Despite achieving some THERE HAS BEEN A success with his ventures, in particular with a franchise network of self-service laundrettes, Peribáñez real- CERTAIN RELUCTANCE ized that his company was missing one crucial ingre- dient: passion. TO EXPLORE THE RETAIL His response was to radically change his line of busi- ness and dedicate himself to something that both in- OPPORTUNITIES THE WEB terested him and offered real possibilities of success: selling wine. PROVIDES. After conducting an in-depth study of the sector, Peribáñez realized that what the wine market in Spain lacked above all was an upmarket retailer that, while staying true to traditional Spanish tastes, offered a se- lect range of quality wines. In 2003, the first Vinus & convince the leading fashion brands that online retail- Brindis store opened in Barcelona. ing could in fact be profitable. Through their sheer per- severance, leading brands were finally able to see that CHAMPIONING ONLINE RETAIL a company such as Privalia represented a great oppor- “For some years now anything and everything has tunity for them not only to clear their stocks but also lbeen available on the Internet: flights, services, to significantly reduce their operational costs, Carné books, music, etc. However, in the fashion industry said during his talk. there has been a certain reluctance to explore the re- tail opportunities the web provides,” said Lucas Carné VENTUREPRENEURSHIP: THE NEW GENERATION (MBA ‘99), founding partner of Privalia, during his- “My passions, my youth and my ambition helped breakfast talk with MBA students. lmake me the entrepreneur that I am,” said Chris- The most difficult challenge he and the company’s topher Pommering, founder of Active CP during the co-founder, Manuel Villanueva, faced was trying to fourth breakfast meeting.

56 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE GROWTH ENTREPRENEURS IN EUROPE

Prior to the Global Entrepreneurship Week, IESE’s campus in Barcelona played host to the European Entrepreneurs Summit Roundtable. The annual forum is organized by Europe’s 500, a European non-profi t membership and networking organization for successful entrepreneurs dedicated to promoting entrepreneurship and growth in Europe.

It represents more than 3,000 entrepreneurs in Europe who have featured in the Top 500 Growth Entrepreneurs in Europe list.

This year’s event, which took place on November 5, featured addresses by IESE’s Dean Jordi Canals; Prof. Juan Roure, co-founder of Europe’s 500; Martin Schoeller, president of Europe’s 500; Juan Laso, CEO of T-Solar and president of the Association of Solar Industries, Spain; and Antonella Mei-Pochtler, senior vice-president of the Boston Consulting Group, Austria. Mei- Pochtler delivered the presentation “The Female Economy: How to Capture Your Share of the World’s Largest, Fastest Growing Market.”

Pommering achieved his first success as an entre- advertising (a form of targeted advertising for adverti- preneur more than a decade ago with his first project: sements appearing on websites or other media). the creation of Autoscout24, a leading European online Both Tomás and Cabezas-Castellanos shared their marketplace for cars. experiences at the Global Entrepreneurship Week “The success I achieved with Autoscout24 made me breakfast series. Among the issues discussed was the think that I was capable of just about anything, but I day-to-day running of the company. Cyberclick bases soon encountered difficulties when I attempted to cre- its model around the objective of offering its clients the ate Boats24 on my own,” said Pommering, who views simplest solutions to address their marketing needs. A this failure as a useful lesson, from which he was able to prime example of this is the company’s creation of dif- draw upon when he founded Active CP, a venture capi- ferent microsites to promote a product or improve a cli- tal fund, in 2002. “Cars, boats and now venture capital ent’s positioning on search engines such as Google. have been the main passions that have driven my pro- According to Tomás and Cabezas-Castellanos, fessional career,” he said. the entrepreneur’s path is never easy, which is why it Pommering has now chosen to dedicate himself to is essential to be surrounded by a strong team, prefer- venturepreneurship, which, he explained, means focus- ably made up of people that are highly specialized in ing on supporting new entrepreneurs. their respective fields and share common goals. They also highlighted the importance of understanding and A LIFELONG DREAM knowing your target audience, because it is they who David Tomás has always wanted to be an entre- will ultimately decide whether your company succeeds lpreneur. His ambition finally led him to give up his or fails. profession as an agrarian engineer to dedicate him- In addition to IESE, other co-sponsors of GEW in self to online advertising. Thus was born Cyberclick, Spain were ACC1Ó of the Department of Innovation, a business group specialized in attracting new online Universities and Companies of the Region of Catalonia, customers for their clients. Fomento del Trabajo Nacional, Ernst & Young, Barce- The group includes Alberto Cabezas-Castellanos’ lona Activa, MadridEmprende, Fundación Banesto and company, Clacktion, which specializes in contextual Fundación Madri+d.

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 57 P E O P L E THE AFRICA INITIATIVE AT IESE IESE PROMOTES STRONG LEADERSHIP IN AFRICA

he role of transformational program at SBS in Kenya and CIO of the telecommu- leadership in Africa will be nications company Safaricom. “Political leadership will crucial in the coming years. have to take its cue from business leaders.” After all, most of the conti- Nana Dawodu, a managing partner of ALM Consult- “T nent’s future development ing Limited and a participant of LBS’ AMP program in will stem from the achieve- Nigeria, seconded Mugo’s comments. “In order to build ments of its business leaders,” said Philip N. Muema, a strong institutions, we need to attract the most success- partner at KPMG Kenya and a participant of the second ful business leaders into politics. After all, the wrong type edition of the Pan-African AMP Module, held on IESE’s of laws will have an impact not only on our businesses, Barcelona campus from November 2 to 6. but on the continent as a whole,” Dawodu said. The Pan-African AMP Module brings together partic- Although female representation on the Kenya AMP is ipants of the Advanced Management Programs at two historically high, some on the Pan-African module said of Africa’s leading business schools, Strathmore Busi- women’s rights had some way to go. “In many African ness School (SBS)in Nairobi, Kenya, and Lagos Business countries, discriminatory laws have erected barriers that School (LBS) in Nigeria, to foster ties between partici- prevent women from engaging in economic activities,” pants and the two schools. said Eva Muraya, a participant of the SBS AMP program This edition of the Pan-African AMP Module was at- and CEO of Color Creations Ltd. “We need leaders who tended by 64 business leaders from East and West Af- recognize and are able to tap the potential off ered by this rica. Carlos Hornstein, director of business develop- half of the population.” ment for IESE in Latin America and Africa, coordinated There was consensus among participants of the Pan- the 1-week module. African AMP Module on one point: the need to develop Participants were quick to see the benefits of the ini- robust educational institutions at all levels. As South Af- tiative. “One of the main advantages of the pan-African rica’s former president Nelson Mandela said, “Educa- module is the networking opportunities it provides. It tion is the most powerful weapon which you can use to has allowed us to share our insights and experiences change the world.” with one another,” said Bili A. Odum, managing direc- tor and CEO of Lagos-based BGL Asset Management. EFFECTIVE ACTIONS “In essence, IESE has helped bring East and West Africa IESE will welcome participants on the third Pan- closer together.” l African AMP Module in November, as well as hosting executive MBA students from SBS and LBS for a week at ADDRESSING THE LEADERSHIP GAP the end of the year. But the school’s commitment to Africa One of the most important challenges facing Afri- goes far beyond 1-week modules in Barcelona. lcan countries is a dearth of good leadership. Conse- “A lot of what we do, we do ‘in-situ’ in Africa by sen- quently, programs such as the AMP have the potential ding IESE faculty to lead courses there,” Prof. Lluis Re- to deliver enormous advances to the continent and its nart, coordinator of the school’s The Africa Initiative people. “There is a need for strong leadership that fo- said. For example, IESE faculty members delivered ses- cuses on the common good and the things that bring us sions in the first edition of the Advanced Management together,” said Robert Mugo, a participant of the AMP Program in Luanda, Angola, in 2009.

58 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE The AMP in Angola was organized by the Lisbon-based business school AESE, in collaboration with FACIDE, an DRIVING on the continent. In ad- association of Angolan business managers. AESE is one PROGRESS dition, the initiative will of a host of business schools and institutions that IESE serve as a platform for works with in their joint bid to develop strong leaders in IESE recently launched the development of new Africa. As well as AESE, SBS in Kenya and LBS in Nigeria, The Africa Initiative, the projects and programs, IESE maintains close ties with Nile University in Cairo, umbrella project en- while also raising aware- Egypt and contributes to the development of L’Institut compassing all of IESE’s ness of IESE’s latest des Hautes Études in the Ivory Coast. efforts to support the activities in Africa,” said On top of that, IESE helps “train the trainer” in Africa development of quality Prof. Renart. through the International Faculty Program (IFP) or the management education doctoral program. Through the IFP, the school helps fac- on the continent and The initiative’s main ulty in African countries develop personally and profes- thus help develop strong objectives will be to sionally, with the aim of improving the overall quality of business leaders. Prof. provide assistance for management education. Lluís G. Renart leads the the development of initiative and is assisted African professors; to INSIDE AFRICA by Program Coordinator support the creation of The recently launched Inside Africa program offers Izabela Kordecka. new Associated Business lbusiness leaders and investors practical insights Schools; and to build ties into doing business in Sub-Saharan Africa. “Through this new with the numerous insti- Participants gain a first-hand view of the business initiative, we aim to tutions and organizations context in Kenya and South Africa, although the scope provide information, that are either active of the program extends to the whole Sub-Saharan re- ideas and support to or interested in starting gion. Kenya (ranked 72 in the World Bank’s Doing Busi- help coordinate the full up activities in Africa. ness 2008 survey) and South Africa (ranked 35), present range of African initia- Through the launch of an illustrative contrast between two Sub-Saharan coun- tives being developed by this initiative, IESE reaf- tries at different stages of development. IESE faculty, chairs and fi rms its commitment to The IESE faculty will team up with professors from research centers, as well improve the quality of Strathmore University and the Gordon Institute of as provide support to management education Business Science, part of the University of Pretoria, in IESE’s associated schools on the continent. Johannesburg.

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 59 P E O P L E ALUMNI Fritz Folts (MBA ‘91) Navigating Risk During a Downturn

Fritz Folts (MBA ‘91) is a principal and Despite high unemployment and shaky confi dence, the markets are remarkably buoyant. Why is this? investment committee member of It is important in our business not to confuse the market Windward Investment Management, an with the economy. When a market declines to the extent investment advisory fi rm serving high net that we experienced from January 2008 through March 2009, there is a natural tendency for the markets to experi- worth individuals, trusts, retirement plans, ence a bounce-back rally at some point. Since the current foundations and endowments. It currently market low in March, the global equity markets have bounced back dramatically. Year to date, the S&P 500 is up over +20%, manages over $3 billion in client assets. and Chinese equities have increased by over +50%. It is like Folts credits IESE with giving him a more bungee jumping, the farther the market falls in any period, global outlook and helping him discover his the more dramatic the bounce-back seems to be. However, oftentimes these bounce-back rallies turn out to be simply entrepreneurial spirit. bear-market rallies which eventually run out of gas, at which point the market turns down again. Furthermore, particularly in the U.S., as the economy continues to struggle and unem- ployment remains a problem, the Federal Reserve is forced to maintain its extraordinarily stimulative monetary policy, in- cluding short-term interest near 0%, in an attempt to reverse defl ation and support economic recovery. The global equity markets have been major benefi ciaries of these monetary and fi scal stimulus programs, which have had the eff ect of refl at- ing asset prices.

Does this buoyancy mean the central banks’ strat- egy of bailing out failing institutions is working? Immediately following the collapse of Lehman Brothers, there was a real sense of foreboding throughout the global

60 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE 7THERE NEEDS TO BE GREATER TRANSPARENCY, PARTICULARLY IN THE DERIVATIVES MARKET WITH INSTRUMENTS SUCH AS CREDIT DEFAULT SWAPS (CDS).

tives market with instruments such as Credit Default Swaps (CDS), etc. For example, AIG was for the most part a fairly conservative insurance company, but it was brought to its knees by a small group in London called the AIG Financial Products Group (FPG), which was recklessly entering into Credit Default Swaps (basically insuring corporate credits) with absolutely no regard for risk management and with no capacity to meet their obligations should there be a prob- lem in the economy or the markets. However, there was no transparency in that market, no central clearing house or ex- capital markets. There was a feeling that, at least here in the change and therefore no way to understand the level of risk U.S., we were heading towards a potential collapse of the that AIG FPG was piling up alongside their enormous annual banking and shadow banking system and towards the real bonuses. possibility of another great depression, similar to the 1930s. Even though the bailout of Wall Street and the banks was Also, in my opinion, there needs to be additional specifi c regu- administered as a rather blunt instrument, I believe that lation around the use of leverage on Wall Street, in banks and their actions did help to avoid the potential of an even worse in the shadow banking system (hedge funds, etc.). The crisis calamity. that we experienced in 2008 was essentially a credit contrac- tion. A situation in which, through de-leveraging, liquidity is The central banks have increased liquidity. Could this extracted from the fi nancial system. just be fuelling the next bubble? Yes, the enormous degree of liquidity which has been made Do the regulators need to educate themselves? For available, at least in the U.S., by holding short-term interest example, do they understand risk? rates at basically zero, combined with aggressively employ- In the U.S., at least, I am often surprised and disappointed by ing quantitative easing, which is the equivalent of printing how little most members of Congress understand about the money, is raising the risk of infl ating the next asset bubble. fi nancial markets. On the other hand, I do believe that U.S. The U.S. fi scal defi cit is projected to more than triple over last Treasury Secretary Geithner, Federal Reserve Chairman year as the U.S. government attempts to bail out consumers, Bernanke and President Obama’s advisors, such as Larry businesses and banks by shifting their debt onto the U.S. Trea- Summers, et al., do understand the global capital markets sury’s balance sheet. This extraordinary monetary and fi scal and risk. However, the issue here is that these individuals stimulus can be supportive of higher global equity prices in may just simply be too close to Wall Street to be eff ective. the short to intermediate term but typically results in cur- rency devaluation and increased infl ationary pressures over Is risk a dirty word now? the longer term. I would say that investors have been re-introduced to fi - nancial market risk by their recent experiences. However, What regulatory changes need to be made? the root of the problem is that fi nancial markets are sim- I’m not sure exactly, but I do think that for one thing there ply far more volatile than modern portfolio theory and the needs to be greater transparency, particularly in the deriva- effi cient-market hypothesis leads one to believe, which in

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 61 P E O P L E

I THINK THAT WALL STREET’S 7STRUCTURE, WHERE THE MAJORITY OF ONE’S REMUNERATION IS THROUGH AN ANNUAL BONUS, IS NOT NECESSARILY CONDUCIVE TO RESPONSIBLE BEHAVIOR.

turn entices investors to ultimately take greater market Has the effi cient-market hypothesis, that price risk than they realize. refl ects all the relevant information in regard to value, now been discredited? The general public views the bonus culture as being I would say yes, the effi cient-market hypothesis has been at the root of the crisis. Is this justifi ed? discredited. However, surprisingly, it is still the basis for I think that Wall Street’s structure, where the majority of most traditional investment analysis. Our basic prem- one’s remuneration is through an annual bonus, is not nec- ise at Windward is that we reject both modern portfolio essarily conducive to responsible behavior. What would be theory and the effi cient market hypothesis as overly sim- more helpful, perhaps, would be a system where one is paid plistic. They are useful but insuffi cient. out over a longer period for longer-term success and not just making a killing one year with a product that could bankrupt In general, how can the fi nancial sector become the firm the following year. A bonus system that rewards more responsive to society? long-term, sustainable success would help to force folks on Tough question. In my view the investment-management Wall Street to consider not only short-term reward, but also and the brokerage industry has not really told its clients longer-term risk in their decision making and their actions. the truth about risk. This is partly because they have a tendency to underestimate risk, but also they avoid talk- Your fi rm says that “volatility” by itself is an incom- ing about it because they’re afraid of scaring their clients plete measure of risk. Could you expand on this? off . On the client side, clients are looking for certainty. Yes, we do believe that volatility is an incomplete measure of They want to be told the market is going up, so they are risk because it relies on the bell curve (normal distribution) by ripe to listen to these half-truths. That has to change. measuring the degree of variation of returns around the mean or (average) return. We simply reject normal distributions as How did you come to choose your current career the basis for making risk-management decisions, given that path? we believe investment returns fl uctuate in accordance with I’ve always been a fairly good global, macro thinker; able a power law [which holds that small occurencies are really to see the big picture and that fi ts well with how we ap- common, whereas large instances are extremely rare] rather proach the market at Windward. And I’ve always had an than a Gaussian distribution [used to describe any variable interest in global politics and this has all come together that tends to cluster around the mean]. Therefore, we use a here, though it took me a while to realize this was what I multi-objection function to analyze investment risk, which wanted to do. looks at not only volatility but also maximum drawdown, with the goal of maximizing risk-adjusted return and simul- How has your education here at IESE helped your taneously minimizing portfolio drawdowns (declines). career? I gained three things in particular. One was the develop- Have investors become more risk averse? ment of my capacity to have a global perspective and fo- Again, I believe that investors have been re-introduced to cus. More than anything, that came from being around so market risk for now, based on recent experiences. But I have many students from so many nationalities and cultures also seen that, as this rally in global equities continues, inves- and realizing that there are a lot of diff erent ways to look tors are feeling, not the pain of losing money in the market, at the world. The other thing is the emphasis there on but rather the pain of feeling that they are missing the cur- ethics. The third thing was the spirit of entrepreneurial rent rally by being in cash as a result of the market meltdown thinking, that it’s important and is to be celebrated. IESE in 2008. helped me realize that that’s what I wanted to do.

62 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE

P E O P L E AWARDS

RESEARCH EXCELLENCE AWARDS Alumni Association presents awards in recognition of IESE faculty research

IESE Profs. Pinar Ozcan, Be- pick up the award for best published in 2001-02. The awards’ primary aim latriz Muñoz-Seca, Josep Riv- book for their work, The New Oper- is to support research at IESE and erola, Joan de Dou and Alberto ational Culture: The Case of the The- recognize the contribution of IESE Ribera will be honored at the Alum- ater Industry, which was published professors in a broad range of man- ni Association’s Research Awards in 2008. The jury’s agement fi elds. on February 9. The presentation selection process INTERNATIONAL will take place during the the asso- for this category The awards’ ciation’s advisory board meeting, is based on three IMPACT which will be held at IESE’s cam- criteria: the qual- primary aim is to The series of pus in Barcelona and broadcast by ity, prestige and support research lawards recog- videoconference at IESE’s campus impact of the titles at IESE. nizes the best aca- in Madrid. presented. demic article to be The association’s Executive published in lea- Committee, which met up on De- RIGOR AND ding international cember 1, selected Prof. Pinar Oz- RELEVANCE journals; the best published book, in can for the best published article Finally, Profs. Joan de Dou and terms of its international appeal and award for her piece, “Origin of Al- lAlberto Ribera will receive the impact on the world of business; and liance Portfolios: Entrepreneurs, best course award in recognition of the design of a new course that has Network Strategies, and Firm Per- the courses “Personality and Leader- proven particularly popular and use- formance.” The article, which Prof. ship” (MBA version) and “Managing ful among the school’s students. Ozcan co-wrote with Kathleen M. Oneself” (Global Executive MBA ver- The jury was composed of IESE Eisenhardt of Stanford Universi- sion). The jury was particularly im- Profs. Fernando Peñalva and Julián ty, was featured in the Academy of pressed by the structure, relevance Villanueva and Alumni Association Management Journal. and impact of the two courses. executive committee members An- Meanwhile, Profs. Beatriz Mu- The IESE Alumni Association cre- toni Esteve, Antonio González- ñoz-Seca and Josep Riverola will ated the Research Excellence Awards Adalid and Alejandro Beltrán.

Prof. de Dou Prof. Muñoz-Seca Prof. Ozcan Prof. Ribera Prof. Riverola

64 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE Chinese Business School Bestows Honors on IESE Faculty STANFORD GSB PROF. D. JOHN ROBERTS HONORED Th e IESE-Fundación BBVA Prize

lThe IESE-Fundación BBVA Prof. Roberts’ lecture, “In Praise Economics for Management Prize of Weak Incentives,” discussed was awarded to Prof. D. John the recent wave of attacks on the Roberts, John H. Scully Professor incentive systems employed by in Economics, Strategic U.S. and U.K. investment banks. The Management and International Stanford professor concluded that Business at the Stanford Graduate banking executives had received School of Business in Madrid on comensurate fi nancial compensation October 21. and that the banks’ pay systems Roberts’ address was subsequently had encouraged excessive risk published by Cambridge University taking. Roberts has held faculty and Press under its “Economics for research posts at Oxford, Kellogg, Management Lecture Series.” MIT and McKinsey & Co.

XAVIER VIVES PICKS UP Chinese Business School BEST PAPER AWARD Prof. Xavier Vives recently lwon the Journal of Industrial CEIBS Bestows Honors on Economics’ best article award 2008 for his paper, “Innovation and IESE Faculty Competitive Pressure,” which analyzed and evaluated the effects As part of its 15th In addition, CEIBS of competition on product and pro- anniversary celebrations, presented its Excellence cess innovation. In the piece, Vives the China Europe Award to IESE Prof. successfully managed to reconcile International Business Alfredo Pastor for his theory and practice while also re- viewing the factors governing the School (CEIBS) presented tireless work as the innovation phenomenon. IESE Prof. Pedro school’s dean from Nueno with the CEIBS 2001-04. Lastly, CEIBS MARTA ELVIRA Outstanding Contribution expressed its gratitude to RECEIVES GRANT FROM Award in recognition IESE and the numerous EUROPEAN UNION of the key role he has members of its faculty and IESE Prof. Marta Elvira re- lcently received a four-year played in the foundation, staff that have contributed Marie Curie grant to help fund development and to the Chinese business her research project, “Emergent international promotion school’s development and Health Care Occupations & Quali- of the Shanghai-based expansion by bestowing ty of Life: A Cross-Country Study.” business school. Prof. the CEIBS Honorary The prestigious grant is awarded by Nueno currently serves Award on IESE’s dean, the European Union to support the training and development of expe- as the school’s executive Jordi Canals. rienced researchers from across the president. single market.

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 65 P E O P L E

8TH IRCO-IESE MANAGING PEOPLE SYMPOSIUM CONTINUOUS EDUCATION FINANCIAL CRISES DON’T JUST HAPPEN Dave Ulrich Sheds Light on Leadership Dave Ulrich, professor at the Ross School of Business, University of Michigan and co-founder of the Results Based Leadership Group, was on IESE’s Madrid campus on October 19 to participate in the 8th Annual IRCO-IESE Managing People Symposium, co-sponsored The fi nancial debacle was caused by a series of by Adecco. “failures” and policy errors that could have been avoided, said highly-regarded U.S. economist Leadership is a basic requirement Charles W. Calomiris speaking on the Barcelona for resolving any problem, campus to IESE alumni on December 1. Calomiris is the Henry Kaufman Professor of including the challenge of today’s Financial Institutions at the Columbia University Graduate School of Business. current crisis, Ulrich said. The In his energetic talk, Calomiris outlined what he ability to lead, however, is not believes were the four major causes of the global fi nancial crisis. Calomiris stressed the importance something a person is born with, of correctly diagnosing the causes of the downturn to but a capacity that can be developed improve chances of making a correction. “We have to spend time fi guring out what happened, over time. before we try to fi x it,” he cautioned. And only by taking a long view of history can policymakers UNIVERSIA KNOWLEDGE understand what “weights” to give certain factors. IESE FACULTY IN WHARTON TOP TEN The fi rst factor, he said, was “loose money,” emerging MOST-READ ARTICLES from across-the-board low interest rates. Second, he pointed to government-backed housing subsidies, IESE faculty features agement strategies and which were eff ectively removed from federal balance ltwice in the top ten commercial success. sheets and promoted risk-taking. most-read articles in The IESE Prof. Santiago Ál- While critical, these two factors do not tell “the Wharton School’s Spanish varez de Mon’s case study whole story,” he said. and Portuguese-language on the tennis player Rafa Buy-side agency problems, such as unreliable credit online management journal Nadal also features in the scores, and prudential regulation failure, which Universia Knowledge. IESE top ten. Álvarez de Mon led to risk being measured improperly, were the Prof. Marta Elvira tops the uses the Spanish player’s remaining two factors. These four factors led to the list with an interview on her race up the rankings to il- current downturn, whose end is still not in sight. book, Best Human Resource lustrate the importance of “I think we’re in for a long haul,” he said. Practices in Latin America, consistency, humility and Prof. Pedro Videla, professor of economics and head co-authored with Anabella discipline in “Rafael Na- of the IESE MBA program, moderated the talk. Davis. Elvira highlights the dal: the Champion and the link between talent man- Person”.

66 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE EUROPE’S 500 EUROPEAN SURVIVING THE IMPOSSIBLE

Nando Par- l rado, one of the 16 survivors of Uruguayan Air Force Flight 571’s crash in the Andes on Octo- ber 13, 1972, addressed a packed auditorium of IESE students and alumni on the school’s Bar- celona campus on November 6. Attendees heard first-hand Par- rado’s world-famous story of courage, endeavor and leadership. His presentation was part of the Europe’s 500 European Entrepre- neurs Summit Roundtable. Parrado discussed how the air crash survivors - members of Uru- EUROPEAN LEADERSHIP FORUM guay’s national rugby squad along with family and friends - survived 72 days in one of the most inhospi- table environments on the planet. Prof. Diaz- “We were tortured by cold and end- less time,” said Parrado. His story provides some of the Giménez Analyzes finest examples of excellence in teamwork, leadership, creativ- ity and strategic management. The Banking Crisis rugby team was on its way to play a match in Chile. London’s Intercontinental Hotel was the setting for this year’s annual European Leadership SPANISH ECONOMY ROUNDTABLE DEAN CANALS SHARES Forum (ELF) on November 17, organized by VIEWS AT THE ECONOMIST BusinessWeek Events and co-sponsored by IESE FORUM IESE’s Dean Jordi Canals pro- Business School. lvided his views on the downturn Among the speakers at the conference was IESE in Spain during a special conference organized by the U.K. publication Prof. Javier Diaz-Giménez. In discussing the The Economist. global fi nancial system, Prof. Diaz-Giménez The event also brought together the country’s Prime Minister José L. laid the blame for the crisis on a combination Rodríguez Zapatero and the leader of the opposition, Mariano Rajoy, as of poor regulatory framework, oversight and well as numerous business and civic the irresponsible actions of some banking leaders. The conference aimed to identify executives. Diaz-Giménez also pointed to the measures to lift the country out of recession. Specifi c issues discussed need for meaningful legislation to bring down included unemployment, public the excessive levels of personal debt in many debt, the education system and the current political tension in Spain. European countries.

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 67 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]

MBA ’06 . Luca de Agostini and Alfonso Urien called together on IESE’s campus in Madrid for a session by Prof. Francisco 80 of their former classmates for a reunion in Madrid on Iniesta. the last weekend of November. The participants converged

EMBA ‘97 ______The former classmates had a EMBA ‘03 EMBA ‘06 reunion on November 19 to Ramón Valdelomar has joined Alumni gathered at a reunion celebrate the 12th anniversary Brown Forman, producer of organized by Roberto Martínez of their graduation. Pablo Her- Jack Daniel’s and Finlandia and Luis Baón on November 28. raiz organized the event. Vodka, as Country Manager ______Iberia. EMBA ‘07, MBA’03 EMBA ‘98 ______Josep Abellán (EMBA’07) is Juan M. Poyatos called together his EMBA ‘05 collaborating with Masaharu former classmates for their annual José L. Vázquez Antolínez has Uchida (MBA’03) on a project reunion on November 26. Miguel been appointed president of the aimed at helping Spanish Torres, president of Motorola Spanish Association of Interac- clothing brands get a foothold Spain, delivered a session in which tive Television Companies in Japan, one of the world’s he shared some of his experiences (AEDETI, for its Spanish most important fashion with his former classmates. acronym). markets.

68 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE MBA ‘94. In October, a group of IESE alumni visited the Santa the Spanish province of Burgos. The plant’s director, José R. María de Garoña nuclear power plant, located in the north of Torralbo (PDG ‘09), gave a tour of the facilities.

AMP ‘05. Imma Folch has been appo- PDD ‘06. Xavier Gracia i Lacalle completed MBA ‘05. Diego de Miguel Martínez inted marketing manager for EMEA the New York Marathon, in 3 hours 46 and his wife Marcella welcomed their for Worldcom PR Group. minutes. second son Gonzalo on August 29.

______MBA ‘96 AMP ‘07 PDG ‘04 Gonzalo Pérez-Ricarte and his The former classmates IESE Alum José R. Alba was ordained wife, Ana Bardisa, welcomed the gathered at IESE’s campus in a priest on September 6. He previous- birth of their third child, Macarena, Barcelona on November 17 ly worked in the automotive sector. on November 24 in Madrid. for a session with IESE Prof. ______Eduardo Martínez Abascal. PDG ‘08 AMP ‘05 ______Charles Rodríguez has been ap- Former members of this class PDG ‘79 pointed corporate fi nancial director met up on December 10 in José M. García-Hoz has been of Chemo Group in Spain, and to Barcelona to celebrate their nominated president of the company’s board of directors. traditional Christmas dinner. the University of Navarra’s Prior to joining Chemo Group, Francisco de las Muelas and Alumni Association by the Rodríguez was the corporate fi nan- Pere Guardiola orga- university’s rector, Ángel cial director of Orascom Construc- nized the meeting. J. Gómez-Montoro. tion Industries (OCI) in Spain.

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 69 P E O P L E AUTHORS

BUSINESS ETHICS Profi t With Principles

DOMÈNEC MELÉ to keep customers happy. With Busi- managerial ethics, organizational ness Ethics in Action: Seeking Human ethics and societal ethics. Excellence in Organizations (Pal- Melé guides the reader through Business Ethics in grave Macmillan, 2009), IESE Prof. the full panorama of contemporary Action ___ Domènec Melé not only provides business ethics issues, including PALGRAVE-MACMILLAN much-needed didactic material for cultural diversity and international business ethics courses, but also for values, whistle-blowing, insider management education as a whole. trading and fraud, managerial ethics, In his latest book, Business Citing a host of “bad” examples, responsible leadership, corporate Ethics in Action, IESE Prof. Melé shows the reader that eth- social responsibility and corporate ics are not optional extras, but in- accountability, and, fi nally, environ- Domènec Melé dispensible to good business. He mental ethics. challenges the new doesn’t simply tell us what not to do, but illustrates how fi rms can go ETHICAL BUSINESS LEADERS generation of managers, the extra mile. Prof. Melé also highlights the executives and consultants lmany positive examples provid- UNIVERSAL PRINCIPLES BASED ed by business leaders, both past and to think about how to ON THE PERSON present, such as Francois Michelin, conduct their work ethically. A company is nothing more than Sir Adrian Cadbury, the 19th centu- lthe sum of its parts. On this ry British industialist, and Cynthia The WorldCom and Enron scan- premise, the author writes from a F. Cooper, the whistleblower in the ldals are recent examples of white- person-centered perspective. Ac- WorldCom scandal. collar crime that made business ethics cordingly, principles and norms for Melé argues that, to respect in- seem like a contradiction in terms. As good behavior bring out the best in dividuals, the organization must al- fat bonuses and greed get blamed for people, allowing them to fl ourish. low them to exercise their rights as the current fi nancial mess, those who Throughout the book, readers workers. Such rights are detailed in suff er are starting to wonder if our lack can test their adherence to non- the third chapter of the book, where of conscience could also have been a culturally specifi c rules with tricky the author touches on issues such as contributing factor. ethical dilemmas included in each child labor, health and safety, and ra- Though it may be true that some chapter. The author also addresses cial discrimination. of today’s leading companies have a controversial contemporary argu- The last chapter of the book ad- strong ethical framework, including ments – such as whether capitalism dresses environmental ethics, sug- Johnson & Johnson and IBM, many by defi nition is ethical. gesting some possible strategies for fi rms and individuals still view ethics The book consists of an introduc- being an eco-friendly company – a as optional, while others use seemingly tion and four main sections dealing theme that is fast moving to the top ethical aims as mere window dressing with individual business ethics, of everyone’s agenda.

Feeding the World

lFood for Thought / How Agriculture self-suffi ciency in rice as the answer is Feeding the World, by Rolando T.Dy, to Filipinos’ chronic struggle with Food for Thought / is a virtual “Who’s Who” of the mov- poverty and hunger. Also included are How Agribusiness is ers and shakers of global agribusi- several chapters on the Association Feeding the World ___ ness. The book provides a special of South East Asian Nations. Dy is ex- Rolando T. Dy focus on Philippine problems and ecutive director of the Center for Food addresses the question of whether and Agriculture of the University of we have been mistakenly focusing on Asia and the Pacifi c (UA&P).

70 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE Letters to Young Chinese Entrepreneurs

ness. To illustrate, Nueno writes of a young Chinese man who wants to Letters to a Young start his own business in Barcelona. Entrepreneur (Chinese Edition) For him, it is the extensive commu- ___ nity of Chinese expatriates living in Pedro Nueno Barcelona who will most likely help pave the way. As Nueno said, “China is an enor- mous country experiencing signifi- Letters to a Young Entrepreneur, cant growth and, as a consequence, l a book written by IESE Prof. opportunities abound. Many of these Pedro Nueno in 2008, is to be pub- are conventional opportunities, simi- lished in Chinese. The book uses 21 lar to those that emerged in post-Sec- letters of correspondence to analyze ond World War Europe.” the factors an entrepreneur should Nueno cites the construction consider to launch out successfully. industry, infrastructure, hospitals, Nueno presents numerous exam- transport and the food and beverage ples that arise in all entrepreneurs’ sector as the country’s most impor- careers. He also evaluates entrepre- tant growth sectors. neurship from different socio-cul- “Chinese entrepreneurs currently tural perspectives. He fi nds that the benefi t from a generous capital mar- basic principles vary little with geog- ket as well as from a government that raphy, but that diff erent cultural or tends to cast a protective net around Nueno has been teaching courses economic environments can condi- Chinese businesses that contribute to on entrepreneurship at IESE for more tion certain aspects of the entrepre- the country’s development.” than 30 years. He played a key role in neurial process. However, Nueno said, “entrepre- the creation in 1994 of the China Eu- The book includes a chapter on neurship is ultimately a process and rope International Business School China, in which Nueno reflects on this process is pretty much the same (CEIBS), of which he is now execu- the importance of networking. Know- the world over. tive president. He recently received ing how to make good use of guanxi - “Before translating the book into the “Friendship Award,” the highest those -opening connections and Chinese, the publishers read the Eng- honor China bestows on foreigners, personal networks of relationships, lish edition and decided that the ideas in recognition of the contribution he favors and debts - proves essential it puts forward were no less relevant has made to management education for anyone looking to launch a busi- to their country.” in the country.

Hot Topic

guished professor of history and reli- ropean pressure for tolerance and gion at the University of Pennsylvania, secularism and to the diversity within God’s Continent: debunks the notion that the Islamic the Islam that is moving north, arguing Christianity, Islam and Europe’s crescent is descending upon Europe. that Europe is just as likely to trans- Religious Crisis Jenkins shows that the fervent rheto- form Islam as be transformed by it. He ___ Philip Jenkins ric about a Muslim-dominated Europe also reveals that Muslims are by no Oxford University Press is based on politically convenient means the only new immigrants in Eu- myths: that Europe is under threat rope: Christians from Africa, Asia, and from waves of Muslim immigrants, Eastern Europe are also pouring into lIn his latest book God’s Continent: exploding Muslim birth-rates, and the the West countries, and bringing with Christianity, Islam and Europe’s Re- demise of European Christianity. them a vibrant faith that is transform- ligious Crisis, Philip Jenkins, distin- Jenkins points to the existing Eu- ing the face of European Christianity.

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 71 L I F E GRADUATION

8TH GLOBAL EXECUTIVE MBA CLASS GRADUATES STRONG TEAMS CRUCIAL FOR STRONG LEADERSHIP

Johan Schroeder, former CEO of n October 8, the 36 graduates of IESE’s 8th Global Executive MBA Radiometer and member of the Class donned caps and gowns to International Advisory Board of IESE, receive their degrees at the com- delivered the keynote speech at the mencement ceremony held on the school’s Barcelona campus. graduation ceremony of the 8th class OJohan Schroeder, former CEO of the Global Executive MBA, during of the Danish medical technology fi rm Radiometer, gave the keynote address. which he shared his insights on prudent Schroeder stressed that, as a manager, teamwork will decision-making and effective always yield better results than individual eff orts. For this reason, he advised the new graduates to consistently so- teamwork. licit and utilize their colleagues’ knowledge. Schroeder also emphasized the importance of pru- dent decision making. “When I was faced with diffi cult decisions, it was often helpful to spend time formulating this problem as a business case... It is always a good idea to spend time considering the problem rather than jump- ing to a solution and then having to consider how to avoid unseen consequences,” he said. He also warned the graduates that “in most business decisions, it is not so important to fi nd the solution with

72 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE 2

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the maximum return. It is, however,” he continued, “of vital importance to avoid solutions where the outcome is unbearable.”

A TIME OF OPPORTUNITY IESE’s Dean Jordi Canals said that, despite the lglobal economic downturn, “this is mainly a time of opportunities. A good time for MBA graduates to bring 4 5 their entrepreneurial spirit to fruition.” He underscored the importance of optimism in the face of adversity: “Hope springs from the belief in the 1. Johan Schroeder, former CEO transformational power of the human spirit, noble as- of Radiometer pirations, ideals, hard work and perseverance.” 2. Profs. Joaquim Vilà, Franz Heukamp, Govert Vroom and “Attitudes are key,” said Dean Canals. “The IESE Carlos García Pont MBA program has offered you a wealth of knowledge 3. Lamees Qasem and her family 4. Matt Donnelly and Murray and capabilities, but the main legacy of this program Duncan Grainger is an understanding of your role in the business world 5. Juan José Hanze and Akintunde-Ayokunle as one based on professionalism, ethics and a spirit of Fagbamiye service. I am sure that the next generations of IESE 6. Cesar Calvo Ortega and his son students will admire your pursuit of professional ex- 6 cellence, your generosity towards others, your com-

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 73 L I F E

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mitment towards the common good, your humility in The director of the Global Executive MBA program, dealing with success and adversity, and your strength IESE Prof. Eduardo Martinez Abascal, congratulated to begin again after failure.” the graduates – all busy professionals – on completing the rigorous 16-month program: A HARMONIOUS LEARNING “IESE awards you the MBA degree with pride, and ENVIRONMENT I am sure you graduates and your friends and family A lively speech was also delivered by Global Executive share this pride with us. I am sure you will all do great lMBA graduate Matt Donnelly from the United King- things, both individually and collectively,” said Marti- dom, who said, “The passion of our teachers, the unrelent- nez Abascal. ing drive of the administrators to consistently deliver the “Never give up that spirit of service that many of you necessary environment for harmonious learning has been have perfected over the course of the program. Give your- awe-inspiring.” selves in service to others, expecting nothing in return.”

74 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE 5

6

A GLOBAL PROGRAM SPANNING THREE CONTINENTS The Global Executive MBA is a highly international 7 lgeneral management program for professionals, featuring modules on three continents. The program is globally diverse in terms of content, faculty and par- 1. Eduardo Gutiérrez de Cabiedes Hildalgo de Caviedes, his wife ticipants. This year’s graduates came from Andorra, and Prof. Luis Palencia Argentina, Bahrain, Canada, Ivory Coast, Ecuador, El 2. Yashwant Nath Singh and his daughter 3. Youb Loukil, Akintunde-Ayokunle Fagbamiye, Isabelle Orhan Salvador, Germany, France, India, Ireland, Italy, Ke- 4. Viresh Prashar, Frank Höving and María José Granero París nya, the Netherlands, New Zealand, Nigeria, Peru, Rus- 5. Global EMBA Class of 2009, Maria Puig (Executive Director) and Ling Tee (Program Director) sia, Spain, Switzerland, the United Kingdom and the 6. Pascal F. Chapon and his daughter United States. 7. Federico Ciardelli, Pascal F. Chapon and Ignacio Iglesias Arauzo

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 75 L I F E

LAURENCE FINK CALLS FOR GLOBAL REGULATIONS

76 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE BlackRock CEO participates in The Wall Street Journal Breakfast Series

ew regula- In the interview with WSJ’s Alan also have to become more transpar- tions are Murray, Fink said that while risk is ent to investors.However, new regula- needed in already being reduced substantially tions must be global in scope, he said. the financial in the banking and finance industry, “We need to make sure that we can’t industry, but more must be done to galvanize dis- mitigate risk in one country by mov- to work, they cipline in large institutions. ing it to another country. We need to Nwill have to make sure the global fi nancial system be consis- BACK ON BALANCE does not have risk, not just the U.S. tent globally, according to Larry “We have to bring everything system.”International bodies, such Fink, CEO and Chairman of Black- lon to balance sheets,” he said. as the G-20, should ensure that new Rock, at a recent edition of the Wall “In my opinion, you need to have regulations have a global impact, since Street Journal Executive Viewpoints more and more derivative products today’s companies are global. Breakfast Series, sponsored by IESE trading on exchanges, so we can see Turning back to the United States, Business School and The Boston the largest of those products. We he said he is “a little frightened” about Consulting Group. could have netting; we could see where the capital will come from to fi - BlackRock is one of the largest pub- who our counterparties are. You nance the U.S. next year. The Obama licly-traded investment management do that and you’re going to bring administration, he said, is counting on fi rms in the world. The company’s as- down a lot of the systemic risks,” low interest rates and steep yields to sets under management totaled $1.4 he stated. kick-start the economy. However, the trillion across equity, fi xed-income, He also stressed that, “obviously,” Federal Reserve’s purchasing power cash-management, alternative-in- regulators are going to have to spend will be lost in April 2010, when a pro- vestment and real-estate strategies more time understanding risk in or- gram created by the Fed (Term Asset- at the end of September 2009. der to create eff ective rules. Risk will Backed Securities Loan Facility) ends.

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 77 L I F E

BRUSSELS ULAANBAATAR WARSAW

STUTTGART TOKYO LONDON MUNICH NEW YORK CITY PARIS FRANKFURT MIAMI VIENNA

SHANGHAI MEXICO CITY

SÃO PAULO SANTIAGO DE CHILE

BUENOS AIRES

THE LATEST ON IESE’S ALUMNI CHAPTERS CHAPTER NEWS

BUENOS AIRES Alberto Ballvé about the world- as president of the Chilean Alumni famous Boca Juniors Football Club. Chapter. The new president is Lionel October 1 The event was held at Havas Media’s Olavarría (MBA ’75). offi ces in Buenos Aires. Alumni based in Argentina and October 19 lUruguay were joined in Buenos SANTIAGO DE CHILE Aires on October 1 by Prof. Sanjay The following month, the Chile Peters, who discussed the eff ect September 10 lChapter assembled its members the crisis is having on emerging for a session featuring a presentation countries in an address titled “To On September 10, members by professor Alberto Fernández. What Extent Have Emerging Markets lof the Chile Alumni Chapter The IESE professor discussed the Become Obsolete Markets by the gathered for their traditional Annual common mistakes made during the 2008 Financial Crisis?” Mario IESE Alumni Reunion. They were planning stages and when monitor- Franzini (MBA ’74), president of the joined by Prof. Pedro Nueno, whom ing objectives, and off ered a number Argentina-Uruguay Alumni Chapter, they had chosen as “2008 Professor of strategies to avoid them. delivered the welcoming address. of the Year.” The IESE professor also gave a session on “Entrepreneuring LONDON November 26 Towards 2020,” in which he proposed strategies to help companies emerge September 15 The Argentina-Uruguay Alumni from the crisis stronger than ever. lChapter also brought together In addition, Patricio Jottar (MBA Members of the United Kingdom its members for a session by Prof. ’88) announced the end of his term lAlumni Chapter gathered to

78 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE attend a session featuring a presen- tation by Greg B. Davies, head of behavioral fi nance and investment philosophy at Barclays Wealth and an honorary research fellow at University College London. His speech, “Behavioral Finance and the Psychology of Investing,” provided an overview of market behavior fore- casting techniques. Investors must now, more than ever, stay one step ahead of the crowd, he said. Davies 1 also explained how personality can aff ect a person’s investment deci- sions. The U.K. Chapter would like to thank Rob Juxon (MBA ’02) and Barclays Wealth for their assistance.

December 11 lThe UK Alumni Chapter geth- ered its members for a session by 2 4 IESE Prof. Laureano Berasategui on “Managing High Performance Teams”. Berasategui provided 1. Prof. Chinchilla with members of the France participants with tips on how to cul- Alumni Chapter, París ____ tivate high performance from teams 2. Prof. Pedro Nueno receives award from the working in situations of tension and Chile Alumni Chapter, Santiago de Chile ____ uncertainty and how to keep the 3. Prof. Alberto Fernández with members of team united during times of crisis. the Chile Alumni Chapter, Santiago de Chile ____ 3 4. Alumni based in Argentina and Uruguay at a PARIS reunion in Buenos Aires

September 21

Paris-based alumni attended a lsession with Prof. Nuria Chin- head of IESE’s international alumni are now having to compete with chilla, in which she discussed some chapters, met with members of the other companies entering the of the main fi ndings of her latest France Alumni Chapter in Paris on market with completely diff erent book, Masters of Our Own Destiny: November 25. During their pre- business models, due to changes in How to Reconcile Professional, Family sentation, “What the IESE Alumni competition regulations . and Personal Life, which she co-wrote Association Can Mean for You,” Prof. Valor discussed the likely with Maruja Moragas. The profes- Rius and den Tuinder shared the impact of these changes, sor shed some light on the historic Alumni Association’s latest news and as well as ways to navigate struggle to achieve work-life balance. innovations. through the new regulatory Prof. Chinchilla said that the fi rst landscape. step towards achieving greater bal- WARSAW ance will depend on our “determi- SÃO PAULO nation to improve the lives we lead September 21 and to become masters of our own September 23 destiny.” Members of the Poland Alumni lChapter recently had the Brazil-based alumni gathered November 25 opportunity to attend a session lat a session led by IESE Prof. with IESE Prof. Josep Valor on José R. Pin, who spoke about Pope Mireia Rius, director of the IESE “Competing with Infrastructure.” Benedict XVI’s recent encyclical, lAlumni Association, and Wim The world’s dominant “Caritas in Veritate.” Prof. Pin pro- den Tuinder, associate director and telecommunications companies vided an overview of the document’s

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 79 L I F E main messages and explored how the measures proposed could help make companies more ethical, as well as more competitive.

September 29

The Brazil Alumni Chapter lassembled its members for a meeting organized in collaboration with the publishers of the Brazilian magazine Época Negócios, at which IESE Prof. Juan J. Toribio delivered the address, “The Way Out of the Crisis: A European Outlook.”

October 28

Brazilian Alumni also met the fol- llowing month on the ISE campus in São Paulo to attend a session by IESE Prof. Joan de Dou. The event, organized in collaboration with the publishers of the Brazilian magazine Época Negócios, featured two presen- tations. The fi rst addressed the issue of work-life balance and the second, stress avoidance. 5

November 27

On November 27, alumni and Prats described the leading players TOKYO lfriends attended a conference in the private capital sector: business that featured sessions from Fábio angels, venture capital and private October 29 Zambelli, head of the Department of equity fi rms. She also explored the Production, Technology and Opera- pros and cons of each and identifi ed Alumni and friends were joined tions at Brazil’s ISE Business School, the best times to use them. Finally, lby IESE Dean Jordi Canals and and Dr. Georges Landau, founding she gave an overview of recent devel- Dr. Peter Baron, founding partner editor of Focus Brazil. opments in the sector and how it has of Japan Business Solutions, at a spe- They discussed the potential been aff ected by the crisis. cial session organized by IESE and impact of the recent discovery of the Tokyo Leadership Forum. Baron massive oil deposits in Brazil on the VIENNA gave an address about professional country’s economy. It is estimated career management, while Dean that in 10 years’ time the energy sec- October 20 Canals discussed ways to create a tor will contribute as much as 20 per- more stable economy in the wake of cent of Brazil’s GDP. A special session in Austria the recent crisis in the presentation lfeatured guest speakers Peter “Beyond the Financial Crisis: Build- MEXICO CITY Oswald, chief executive of the ing a More Stable Global Economy.” international division of Mondi, an October 14 international paper and packaging SHANGHAI group, and Norbert Zimmermann, The Mexico Alumni Chapter chairman of the advisory board of October 31 lmembers gathered on the IPADE Austrian technology and metalware campus for a session with IESE fi rm Berndorf. Along with IESE Prof. The China Alumni Chapter orga- Prof. Julia Prats, who delivered Pedro Videla, they shared their lnized a session for its members the presentation “Financing New views on business ethics and their on October 31 on the CEIBS campus Projects: Private Capital.” Prof. forecasts for 2010. in Shanghai. The participants were

80 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE NEW YORK CITY

November 19

U.S.-based alumni were treated lto a session with acclaimed journalist William F. Baker, who is currently President Emeritus of Educational Broadcasting Corporation (EBC). EBC is the parent company of WNET-TV (Channel Thirteen) and WLIW-TV 6 7 (Channel 21), where Baker served for 20 years as Chief Executive Offi cer. Baker off ered participants a vivid picture of the U.S. media sector 5. Prof. Juan J. Toribio addresses members of the Brazil Alumni Chapter, São Paulo by drawing on the latest Nielsen ____ report on modern viewing habits. 6. Hugh Sinclair (MBA ‘01), Tsendsuren Gantu- mur (IFDP ‘03) and Oliver Thirlwall (MBA ‘01) in He also discussed how modern Mongolia ____ journalism may be aff ected by these 7. Hugh Sinclair in Ulaanbaatar changes, in particular by the recent ____ fall in advertising revenue. 8. Session in Miami on December 2 December 10

Members of the United States lAlumni Chapter met up with 8 IESE Prof. Sandra Sieber for the session “From Advertising to Software Services: Google and the Future of the Digital Landscape.” joined by IESE Dean Jordi Canals, gave the presentation “Managing Sieber explained how Google who spoke about the opportunities High-Performance Teams.” During became one of the leading players in presented by the recent crisis to the talk, the IESE professor spoke the Internet business. build a more stable global economy. about how to approach team man- agement in today’s world; the need MUNICH BRUSSELS for more in-depth research into how teams function; the keys to success- December 10 November 10 ful teamwork and the major pitfalls that can result in team failure. Germany-based alumni joined Members of the Belgium and lIESE Prof. Steven Poelmans lLuxembourg Alumni Chapter STUTTGART in Munich for the session “Cultural met up in Brussels for a session Intelligence: Adapting to a led by Sébastien de Fooz, who November 19 Diversifying Workforce.” Poelmans recounted some of his experiences discussed the concept of cultural when he left his home town of Gh- The Germany Alumni Chap- intelligence and off ered some ent in 2005 to walk the 5,500 km to lter convoked a meeting for its tips on how to adapt to growing Jerusalem in six months with only members in Stuttgart, at which Prof. workplace diversity and use of €50 in his wallet. Josep Tàpies gave the presenta- virtual, cross-functional and tion “The Family Council: Key multinational teams. FRANKFURT Elements in Good Governance of Family-Owned Business.” Prof. MIAMI November 11 Tàpies discussed the role of the family council in a family business, December 2 Germany-based alumni at- drawing parallels to the crucial role ltended a session led by IESE played by the board of directors in a U.S.-based alumni gathered with Prof. Laureano Berasategui, who non-family business. lProf. Guillermo D’Andrea, of

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 81 L I F E

IAE Business School (Argentina) ALUMNI MEET UP IN THE BIG APPLE to hear the talk, “Catering to Emerging Consumers: Retailers’ Grand Central Station was the perfect MBAs to New York is a great experience. Response and its Implications rendezvous to bring together some 70 IESE I am amazed to see how much the Global for Manufacturers.” Guillermo alumni for a social event held on October Executive MBA community has grown.” D’Andrea teaches on the 9, the eve of the Global Alumni Reunion With over 25 percent of all participants Senior Executive Program (GAR) in New York. The Alumni Association since the program’s inception attending, (SEP)for Latin America which would like to thank Lorraine Merghart together with 15 professors and Global brings together the expertise (MBA ‘84), a member of the IESE U.S. Alum- Executive MBA staff and guests, it was and experience of three business ni Chapter Board who was instrumental in one of the best turnouts the event has schools (IESE, IPADE and IAE). organizing the event. had. Among the IESE staff and faculty On the same evening Global Executive at the event were Maria Puig, executive SANTO DOMINGO MBA alumni met up at the New York director of the Global Executive MBA, Athletic Club in Manhattan to enjoy a night and Prof. Eric Weber, the associate December 9 of networking and mingling. The annual dean of IESE. event, which allows the close-knit Global Finally, alumni from the AMP ‘09 pro- Alumni in the Dominican Executive MBA community to reconnect, gram got on their bikes to take in some lRepublic met on Barna marked the school’s growing presence the of the sights in New York at the Global Business School’s campus in school in the U.S. Alumni Reunion in October. The sightsee- Santo Domingo, where After seeing the turnout of his fellow ing trip was one of a number of social they heard a talk by Prof. José R. Global Executive MBAs at the event, Sean events organized by alumni to make the Pin on transcendent leadership. Ugrin (Global Executive MBA ’03), from most of their time in the Big Apple. Denver, Colorado stated: “I completed the The IESE Alumni Association would like ULAANBAATAR program in 2003 when there were fewer to express its gratitude to all the U.S. than 60 alumni, including my class. As a chapter board members who worked so December 31 member of the Alumni Chapter in the U.S., tirelessly to make IESE’s fi rst GAR in New to be able to welcome the Global Executive York a resounding success. Hugh Sinclair (MBA ’01) and lTsendsuren Gantumur (IFDP ‘03) organized the first alumni reunion of its kind in the Mongolian capital of Ulaanbaatar to welcome in the 2010 New Year. The occasion for this reunion, held on New Year’s Eve, was a visit from IESE alum Oliver Thirlwall (MBA ‘01). 9 The group later took a horseback trip into the Mongolian mountains. There are currently five IESE alumni living in Mongolia, four of whom are involved in business education and work at the Mongolian University in Ulaanbaatar.

10

9. Global Executive MBA alumni reunion at the in Manhattan ____ 10. Alumni from AMP ‘09 ____ 11 11. AMP ‘09 alumni meet up in New York to participate in the GAR

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The IESE Alumni MAXIMIZE YOUR POTENTIAL Association’s recently Faculty from the Department of Managing People l are also collaborating in IESE’s Talent Development launched portal includes Unit. The unit has recently launched START, an online program for the exclusive use of Association members. START’s main aim is to help alumni identify the leader- a virtual platform with a ship skills that they need to hone by completing a range of self-assesment tests and exercises to gain a clear picture range of tools to support of their current leadership profi le. Users can compare their results with the average its members’ personal and scores of other executives; share the experience with other alumni; and draw up an action plan with the sup- professional growth. port of an experienced coach. Prof. Pablo Cardona, director of IESE’s Department of Managing People in Organizations and Research Associate Helen Wilkin- son are spearheading the Talent Development Unit. José M. Moreno (MBA ‘96), managing director of Voltimum Iberia, said that using START had been “an invaluable experience” that had enabled him to enhance he Alumni Association has launched a vir- his awareness of both his leadership strengths and areas tual toolkit to help alumni identify their for improvement. strengths and areas for improvement. The Association’s “Professional Deve- PERSONAL CAREER TRAINERS T lopment” platform will help them to re- l As a next step, Prof. Cardona’s professional examine and potentially redirect their coaching service can help alumni improve their self- professional career paths. awareness as well as define and achieve their goals. Or Career support is one of the most frequently-reques- Alumni Association members can attend life coaching ted items among the Association’s members, according programs led by other IESE professors. Members can to survey results. In response, the Association has laun- request a personal interview on how to move forward ched the new “Professional Development” platform to professionally and in the personal sphere via the portal. strengthen its services in this area. The first session is free of charge. Prof. José M. Rodrí- Tools in the “Professional Development” platform in- guez Porras coordinates this initiative. clude online programs such as START, a kind of SWOT The life coaching service also offers assistance with analysis of alumni’s leadership skills, and SUCCEED, a the decision-making process at each stage or crossroad seven-step career development plan. The platform also in our professional and personal lives. This service is encompasses the “Career Opportunities” service. ideal for alumni facing periods of change, uncertainty Faculty from the Department of Managing People in or those who feel unfulfilled by their current situation. Organizations contribute their extensive expertise in Prof. Nuria Chinchilla, director of the International the area, with content and programs regularly updated Center for Work and Family and an expert on work/life as a result of their research. balance, leads this project.

84 JANUARY-MARCH 2010 / No. 116 Alumni Magazine IESE SUCCEED: START: KNOW DESIGN YOUR 1. YOURSELF BETTER CAREER PLAN TO GROW AS A PROFESSIONAL LEADER AND PERSONAL DEVELOPMENT

5. 2. EVENTS AND TALENT SEMINARS DEVELOPMENT START TO SUCCEED

SESSIONS ON CAREER DEVELOPMENT

PERSONALIZED SEARCHS FOR JOB OFFERS 4. 3. CAREER PROFESSIONAL PROFESSIONAL OPPORTUNITIES GUIDANCE LIFE COACHING SUPPORT PROFESSIONAL INTERVIEW COACHING

• And those members that are unable to attend per- • Lastly, the Alumni Association runs a full roster of sonal coaching sessions do not miss out: the Alumni ongoing Continuous Education seminars and sessions Association’s Professional Development platform in- focused on career development to allow alumni to con- cludes SUCCEED, an online tool that helps alumni draw stantly enhance their career planning skills and keep up professional and personal development plans (IESE track of recent developments in career management. Alumni Magazine issue no. 114, pp.34-35). Since the Alumni Association launched its new por- • Once alumni have firmed up their career plans using tal last year, the range of services on offer continues to SUCCEED or via personal coaching sessions with facul- grow. The interactive platform, available in both Spa- ty, they can target their ideal job on the “Career Oppor- nish and English, will evolve in response to the needs tunities” section of the portal. of association members. This section allows alumni to conduct personalized So for Alumni Association members who want to searches by sector, geographic region and salary range, reassess their career paths in 2010, there is no reason as well as save their preferences for future searches. why they cannot “START” to “SUCCEED.”

IESE Alumni Magazine JANUARY-MARCH 2010 / No. 116 85 I E S E & YOU THE NEW LOOK ECONOMIC

OVERVIEW CONNECT WITH IESE ON THE WEB

ESE’s monthly publication of the Alumni Association’s latest Who hasn’t heard of social net- International Economic Over- news, informing alumni about works? The phenomenon that Iview has begun the new year other services the association’s is transforming the way we with an overhaul aimed at portal offers. communicate on the Internet providing a better service as well is nothing new to IESE, which as strengthening the school’s ties International Economic Overview has a strong presence on the with alumni. is a monthly publication for mem- leading networking sites. What Among the publication’s new bers of the Alumni Association. is new, though, is that you can features is a readers’ letters sec- Its editorial board, which consists now access each site from one tion (on the back page) featuring of members of IESE’s Economics single web page: the most interesting comments Department, analyzes economic www.iese.edu/Network from alumni as well as Prof. Pedro trends and prospects. The publi- Videla’s response. By promoting cation, along with the IESE Alumni YOUTUBE two-way discussions with readers, Magazine, is one of the most val- The site’s main YouTube screen the school hopes to strengthen its ued services among members of features the latest IESE video. already close ties with its alumni. the IESE Alumni Association. All the other IESE Youtube The publication will also The publication’s editorial videos are just one click away. include a third article to allow its board includes Profs. Antonio Ar- writers to tackle a broader range gandoña, José M. Campa, Jordi FACEBOOK of topics within the same issue. Canals, Javier Gómez Biscarri, Keep track of the latest news Also, the articles will be signed Nuria Mas, Alfredo Pastor, Juan about the school on the world’s by the authors, which should help J. Toribio, Pedro Videla and no.1 social networking site. to personal- Xavier Vives. ize contactntact TWITTER betweenen read-read- Alternatively, you can follow ers andd thethe the latest developments at authorsrs andand the school on Twitter, the make iitt eaeasiersier revolutionary microblogging for alumniumni site. to commentmment directlyly ITUNES on issuesues IESE videos are also available raised in the podcasts section of in eachh Apple iTunes’ audiovisual article.e. platform. In addition, you Fi- can log on to www.iese.edu/ nally, thethe Network to access a range new- of IT resources designed to look make our lives easier, such publi- as widgets and toolbars, not cationn to mention a host of blogs will related to IESE. So, what are in- you waiting for? Give IESE’s clude network page a browse! some

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JUANJUAN CARLOSCARLOS VÁVÁZQUEZ-DODEROZQUEZ Professor of Accounting and Control and Business Ethics, IESE Business School

lmost 30 years ago, our borders; and, fi nally, being unwilling to during the IESE Alumni make the sort of sacrifi ces that such challenging Magazine’s formative times call for. A years, I published However, there are also those who see an article about the current circumstances as a challenging entrepreneurship. It comes as something of opportunity to set up new companies; who, a surprise that three decades on many of the despite the climate of uncertainty, continue ideas that I put forward back then not only to battle on with renewed energies; who remain applicable today, but have actually have looked long and hard at their business acquired even greater relevance. I would like to model in order to identify what remains valid revisit some of these concepts for the purpose and what areas need changing. These could of shedding light on the vast opportunities that include, to name a few, approaches and policies; exist right now. They represent challenges that operational methods and marketing strategies; are not much different, in essence, from those ways of embracing the new opportunities we faced back in 1981. arising from technological developments, and We are going through tough times, full of accountancy and control strategy. difficult and daunting opportunities, but Just as I wrote almost 30 years ago, today’s opportunities nonetheless. We have had world is full of entrepreneurial opportunities. to adapt to a new business and economic But we must be ready to unleash all our creative scenario, and we must confront this situation energies, to take the bull by the horns, so to in a constructive way, with the desire and speak, and to work hard. determination to improve our present reality, I sincerely hope that in the next few years we whether we like it or not. will have responded successfully to this new Business leaders are faced with two main challenge. It is true that there has always been choices: either confront the challenges head and always will be those who do not follow the on or concede defeat. Waiting it out (i.e., doing right path, but let’s not fool ourselves: real nothing) in the hope that better times are on the achievements come to those who truly pursue way is just one way of conceding defeat. Others their goals, and success comes to those who include focusing solely on the diffi culties; laying work hard. And right now, in these times of the blame on anyone and everyone except opportunity, we must work with all the means oneself; refusing to address the urgent need for at our disposal to address the tough challenges constant reinvention; refusing to explore the ahead. opportunities available both locally and beyond So just do it!

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