GLOBAL BUSINESS SS

INTERNATIONAL INTERNATIONAL FUN FACTS ■ Being agreeable and extraverted is a RECRUITING liability in some types of negotiation in the U.S. But not so in Taiwan, where BY CHRISTIE ST-JOHN what makes one a winner in negotiation are such unique Chinese choose prosperity for your country or market the program? We advertise in personality traits as concern for social company.” Our mission is to provide an key publications, but the best way is exchange (renqing) and for “Face.” environment where students from vari- through networking and personal con- ■ The words “I take full responsibility for ous countries and ethnic backgrounds tacts. We see thousands of people along the company’s problems” are merely lip can learn from each other and better the way. We give presentations to stu- service and politeness in the U.S.; in understand the complexities of the dents at Kaplan and Princeton Review some cultures it means, “I plan to global economy. testing agencies and TOEFL institutes, resign.” Again this year, members of the Ad- conduct hundreds of personal inter- ■ missions Office traversed the world to views, and meet with educational advi- U.S. investors historically have ignored overseas stocks. In 2000, the U.S. stock find bright, qualified students. Todd sors at the Institute of International Ed- market accounted for only one half of Reale, Admissions director, and John ucation, the Fulbright Commission, and More and more alumni are getting involved in alumni activities overseas. Here, St-John the world’s total stock market value, yet Haller, associate director of Admissions local universities. relaxes over dinner with a group of alumni in Seoul. U.S. investors on average hold 90 and Student Services, covered the U.S. percent of their investments in U.S. and Canada. Miguel Bota, associate di- speak to students in their own language, lower at these schools, and their pro- companies. rector of Admissions and Marketing, Our mission is to provide an and are proof that an MBA from Owen grams have been expanded and accred- ■ The average annual country club spent three weeks in Latin America, is a passport to success. ited by various accrediting bodies. environment where students membership fee in Singapore is participating in MBA fairs in Monter- Alumni also spread news about While the U.S. remains the top $300,000. The average annual from various countries and Owen to their employers and prospec- choice for many, we must be flexible rey and Mexico City, Caracas, São swimming club membership fee is Alumni assistance is invaluable in recruiting Paulo, Rio de Janeiro, Buenos Aires, Li- ethnic backgrounds can learn tive students, and are contacts for our and creative to continue to attract in- $25,000. current students for job information. ternational students. Luckily at Owen, internationally. Manning the booth with St-John ma, and Santiago. I crisscrossed Europe, from each other and better ■ in Ankara, Turkey, is Bahysayis (Temir) targeting Paris, London, Madrid, Milan, We hold alumni receptions and dinners we are able to move quickly to meet The most wired nation in the world is Singapore. Virtually every home is wired Firatoglu, ’99. Frankfurt, Berlin, Warsaw, Prague, understand the complexities of on the road, and it is gratifying to see new challenges. We have good commu- with broadband Internet access. The Moscow, St. Petersburg, and Istanbul, the global economy. more and more alumni involved every nication among our constituents and or the past five years, ratio of PCs to students in the public then on to Tokyo, Seoul, Taipei, Singa- year. The “Owen Community” is not a the support of Dean Bill Christie, the the Owen Admissions school system is 2 to 1. pore, Manila, and Bangkok. myth. Alumni come out in force in faculty, and Chancellor Gordon Gee to Office has aggressively ■ F Why do we choose some cities and We also call on alumni to help at South America, Europe, and especially implement new ideas and programs. The State Bank of India has more than recruited students not others? We participate with 30 to the fairs. Alumni assistance is invalu- Asia. We are proud of their success and We are aware of the importance of 17,000 branch offices, some of which from around the globe. Our interna- operate without electricity. 40 other universities on tours focused able because they give practical advice, eternally grateful for their help, both maintaining a global academic environ- tional student population has increased on prospective MBA-student markets. with recruiting and career ad- ment to form knowledgeable, far-sight- ■ In Bangkok, the average travel time from 16 to 30 percent during this period The tour agencies conduct research to vice. ed managers for today’s economy. Our from the downtown business district to and benefited the School in many ways. determine the best cities. Organizers Recruiting globally is efforts have paid off: the London Finan- the airport—a distance of 10 miles—is Why do we consider an internation- coordinate locations and publicity, increasingly competi- cial Times named Owen one of the top three and a half hours. The expressway al program worth the effort? In the gather information on attendees, tive. More U.S. 30 business schools in the world, and is shared by motorists, bicyclists, and words of Thomas Friedman in his book, cattle. and oftentimes make our travel schools are hitting France’s leading newspaper, Le Figaro, The Lexis and the Olive Tree, “if you arrangements too. On occasion, the road, and a rated Owen the 13th best school for in- ■ The mean time for a passenger to exit a can’t see the world and you can’t see we may travel with a select Map of world, number of busi- ternational students. But we won’t stop jet, walk through the terminal, collect the interactions that are shaping the group of schools to target areas with dots showing ness schools from there. The next goal: being in the top luggage, pass through Customs and world, you surely cannot strategize countries where not covered in the general Australia, Great 10 in the world! Immigration, and secure a taxicab at about the world. And if you are going alumni are located. tours. Britain, Japan, and Changi International Airport in to deal with a system as complex and Singapore is 10 minutes. It is not easy to break into the Canada are gaining Christie St-John is director of International brutal as globalization, and prosper international market, and to do so a share of the market. Relations at the Owen School. Compiled from Owen professors’ research and within it, you need a strategy for how to takes name recognition. How do we The tuition is generally personal experiences.

28 SUMMER 2002 OWEN@Vanderbilt 29 GLOBAL BUSINESS SS

OWEN FOREIGN EXCHANGE RATES —RISING ALL THE TIME

DAVID CRENSHAW in the U.S. This is a narrow view con- with companies in these countries. which, I also developed many friend- Running With the Bulls BY CHRIS NANCREDE sidering that less than 5 percent of the When immersed in other cultures, ships that will last a lifetime and pro- world’s consumers live in the states. you also quickly discover how society vide an invaluable international net- n college I wanted to study overseas, Union and other changes in Europe are ties markets to a Studying overseas exposes us to success- influences business. For instance, by work. but as an engineering student I having on business around the world. seminar on Japan- ful business methods we might not con- learning about Japan and its collective As the world grows smaller and in- Ifound this nearly impossible. So Following the program, I began an in- ese, European, and sider. For example, American corpora- society, it is easier to understand why ternational commerce becomes increas- when I decided to get an MBA, I ternship at BMW in Munich. American business tions cite increasing shareholder value most business decisions are made by ingly seamless, an understanding of in- sought out schools with international At BMW, I developed a strategic practices, struc- groups of employees rather than one ternational cultures and business prac- programs. Owen gave me the opportu- business proposal for an internal e-com- tures, and ideals. team leader or department head. Un- tices is necessary to succeed. These fun- Nancrede Being one of about 15 nity to study and work abroad to learn merce communications portal for BMW I thought I derstanding business and culture in oth- damentals will assist me in my career about other cultures and business ide- worldwide, headed research on the on- knew what to expect from these ex- percent Americans in class er countries is not only critical in con- and have driven me to look for an in- ologies. These experiences equipped me line auto industry in 12 global markets, changes, but it was beyond imagination. forced me to consider issues ducting business in those countries but ternational assignment in my current with the necessary skills to succeed in and helped launch BMW sites in Being one of about 15 percent Ameri- from other viewpoints. I is paramount in understanding business job search. Many Americans fail when the increasingly global marketplace. France and South Africa. I dealt with cans in class forced me to consider is- understood for the first time at home. working with different cultures because In the summer of 2000, I participat- the issues and effects of e-commerce sues from other viewpoints. I under- Not all of my education took place they cannot adapt. An enriching inter- what it means to be a ed in a month-long program at Wis- and telecommunications in a myriad of stood for the first time what it means to in a classroom or an office. Some once national experience provides the tools senschaftliche Hochschule fur Un- countries on four continents, and trav- be a “foreigner,” something that not on- ‘foreigner.’ in a lifetime cultural experiences in- necessary to meet challenges that lie ternehmensfuhrung-Otto Beisheim eled extensively throughout Europe. ly taught me about the business world cluded running with the bulls in Pam- ahead in the global marketplace. I fully Graduate School (WHU-Koblenz) in At the end of the summer, I returned but about myself. Among the greatest as the main objective. Businesses in plona, attending Oktoberfest in Mu- expect the experiences provided by Koblenz, Germany. Students from the to Nashville just in time to fly to Japan. benefits was first-hand exposure to how Japan and Europe, however, often con- nich, visiting the World Fair in Owen to allow me to succeed at home best business schools in the world go I spent the next four months at the In- Japanese and Europeans view, define, sider the concerns and desires of em- Hanover, and walking on hot coals in or abroad. there to study the changing face of in- ternational University of Japan through and interact within the business world. ployees or society to be paramount. It is an ancient fire walking festival in ternational business in Europe. I an exchange program. I took a full load We often assume that business over- crucial to remember this alternative Japan. Who said a business education Chris Nancrede is an ’01 graduate of the learned the effects that the European of classes, ranging from Japanese securi- seas is conducted in the same manner as paradigm when conducting business isn’t supposed to be fun? Speaking of Owen School.

BY MERITXELL CANCIO Experiencing Cultural Diversity more so in a mixed cultural context, but dents helped me. “Solidarity” is defi- new friends, experiences I never will is a necessary skill for MBAs to learn. nitely a hallmark of this School. forget, and the pride of having con- tudying abroad can be seen as a the real world outside. beloved Dean— (And in the working world, “diversity” Personally, I learned at Owen that tributed to life at Owen for a period of pleasant experience, one full of di- Why Owen? Because it has been “the Dean is in”) is not only cultural, but also social and you can reach as far as you want: Strive time. Sversion and entertainment, a ranked a top 25 MBA school, and top have a “proper psychological. Motivations and objec- for your goals using your abilities and Owen is a micro system, where to in- “non ending party.” 10 in finance and in e-commerce. And name.” They tives are never the same things for em- hard work. And even while the Owen teract is to learn to work and to live. Be- And…that is not false. Exchange because of Donna Hoffman and Tom have virtues and ployees of a company.) Innocent cus- community encouraged us to pursue our ing an Owen MBA means having spe- programs offer a world of new experi- Novak, founders of eLab and pioneers defects, joys and toms in our countries could be inter- own dreams, it never forgot the dreams cialized knowledge, spirit, the ability to ences, but Owen adds the element of and professors in the analysis of con- pains. All are re- preted as disrespectful and irreverent of needy people, those whose dreams work hard and achieve excellent work, “family” to that list. sumer behavior in the World Wide ally human. Cancio conduct. Tolerance is born from knowl- are as basic and important as a ceiling, having optimism about the future, the I wanted to study in the U.S. to ac- Web. The quality of the School was My experience edge, and Owen was our reference an education, equality of opportunities, ability to learn from mistakes, and espe- quire knowledge and be exposed to dif- reason enough, but the environment al- was unforgettable. We worked long point. or just a little present at Christmas cially having a social conscience with ferent points of view. Improving my so was key. There are approximately hard hours, individually and in groups, Professionally, Owen gave me ac- time. The service projects illustrate the no color or border limitations. English was an important but non- 200 students per class, and 30 per but also shared many rewarding experi- cess to a wide range of companies. School’s commitment to society. Owen OWEN—four letters that never be- decisive factor. You can learn lan- course. This allows for participation and ences. I had lived in a foreign country Owen’s reputation opens doors for shows you that time is more valuable fore meant so much to me. guages in an academy, but to gain a expression of thought. “To learn” is an without friends or family before, but as you, but then you have to demonstrate than money, and that sharing it with sense of “playing a game by another’s unavoidable maxim. But at Owen, stu- for many students, Owen’s cultural di- you have what it takes. I applied to others is the first step toward community. Meritxell Cancio, supervisor for Andersen rules,” you must travel and share your dents and, more important, professors versity was new to me and had a major several companies and got an offer. I returned to Spain with more than Corporate Finance in Madrid, was an ex- life with other cultures—experience and employees (among them, our impact. Group work is tricky, even Through it all, employees and stu- an academic certificate. I returned with change student at Owen in 2000.

30 SUMMER 2002 OWEN@Va nderbilt 31 GLOBAL BUSINESS SS

name just a few— provided me a per- schools in a short time frame can make bank account opened with my new Learning from the Source BY MARCOS PERALTA spective of how business is thought, you feel more like an end product than SSN, etc. felt, spoken, and conducted around the a human. When speaking to people starting hen Hernán Cortez arrived nity to learn directly from thought world. When Tom Hambury (former direc- the MBA search process, I stress that a in Mexico, determined to leaders in such fields as online con- When talking about Owen, I stress tor of Executive Education) inter- faculty can be fine, the school reputa- W conquer the Aztecan Em- sumer behavior, service marketing and that nearly 25 percent of my classes viewed me in Buenos Aires, he got the tion great, job offers attractive, school pire, he burned his fleet of ships, sig- operations, financial markets, e-com- were taught by non-American profes- information he needed but also facilities the best, but also look at how naling to his people that no retreat was merce strategy, environmental studies, sors and another 20 percent were showed a genuine interest in who I was you are treated and respected. At the possible. micro-economics, customer satisfac- taught by American professors active and what I was doing. After meeting end of the day, this overlooked factor For me, like most international stu- tion psychology, negotiations, and at teaching, consulting, and research- admissions staff from more than 10 makes the difference for international dents seeking an American MBA, the time-based competition. And more ing in Latin America, Europe, and the schools, it was the first time somebody students and their families. And in this story is similar: my wife and I burned compelling, Owen’s small size and ex- Far East. In this environment, it is dif- seemed to be listening to me and not area, Owen is top. our ships by taking our savings and cellent professor-to-student ratio as- ficult not to “get the global thing” and just the candidate. I returned home So, now you know why Fabiana and selling our assets—her car, my wonder- sured me I would have easy access to understand—as an Owen professor that night in 1996 and told Fabiana: I—like dozens of other international ful TV, even our bed!—and going to the faculty. says—that all who come to Owen— “I have met a guy from a small school students—burned our ships and sold business school. An MBA is a gamble The experience exceeded my expec- Americans and non-Americans—are who treated me like no one else. If cars, houses, and even beds: to meet a Peralta for all students, but we “internationals” tations: I found a faculty—recognized really international students. they make an offer, it is going to be great faculty and learn from their lead- face the additional challenge of mak- in and out of the classroom—who travel, how many languages you know, Fabiana appeared to be impressed by difficult for me to turn it down.” ing-edge insights; to meet wonderful ing decisions with incomplete informa- shared new, unpublished research find- and how much you read about interna- this answer, but fired again: “What The great thing is that Tom’s atti- people from around the world and “get tion about schools, city life styles, cost ings at every class and who personally tional affairs, if you have spent most of else?” My third and final answer was, “I tude is typical among Owen staff. I the global thing;” and to come togeth- of living, housing, transportation, and your life in a single country, you tend am also here to learn at one of the few rarely have found people more willing er with people who listen, support, and job markets. to develop an insular mind-set. Know- schools that respected me as an individual to go the extra mile to help. And be- make you and your family feel wel- As with many married students, I At Owen, I found not only the ing that I was going to be involved in from the beginning of this process.” lieve me, I asked for enough help to come in a new culture and new system. asked my wife to put her career on opportunity to learn from global business for the rest of my life, No matter where you are from, ap- become a pain: how to make my first And Fabiana said, “Well, it sounds good hold, leave her family and friends, and plying to business school is a tough tuition payment without a U.S. bank enough then.” those who write business the idea of studying in a different come with me into the “unknown.” country, immersed in a different cul- process. Admissions scrutinizes every- account, how to open a bank account Fabiana didn’t speak English and had books, but to write with them. ture, was compelling. thing you say and write, searching for without a social security number, how Marcos Peralta, ’99, is an associate with no idea what she would do while I was When researching schools, I found the hint that you are “the right per- to ask for a SSN, how to get a driver’s A.T. Kearney, Inc., in Buenos Aires. at school (working was not an option that despite its relatively small size and son.” “Selling” yourself to many license so that I can use my brand-new because of immigration regulations), reviewed our deliverables and provided odd location (Let’s be frank: Nobody but she took the challenge. Spouses feedback. And to my great surprise, can imagine that you can “get the like Fabiana, with their unconditional they engaged students in their research global thing” in a 500-person school in support, make many international and asked them to co-author papers, as the southeast U.S), Owen not only has MBAs possible. Brenton, Pradeep, myself, and others a strong international student body A Business “Peace Corps” BY DEBRA ASAY Far from home, seeing your cash fly found out. with more than 40 countries represent- out of the bank, you seriously wonder Today, when I talk to prospective ed but also a strong international fac- any classmates and potential was to learn about the global economy serving in Lithuania, Estonia, Poland, “why am I doing this?” students about Owen, I stress that few ulty. In this setting, I would have the employers could not under- through international work experience. Hungary, and Moldova. Owen taught My first answer was, “I am here to schools offer this combination of opportunity to find out, for example, if stand why I turned down Exchange programs offered unique cul- the business concepts (and in some cas- learn from those who write the business thought leadership and top faculty ac- global consumer marketing makes M great job opportunities to volunteer for tural experiences but did not include a es, practical application of the con- books.” In undergraduate school, in cess. At Owen I found not only the sense. a year in a country most had never work component. I saw the MBA En- cepts), while the Corps provided an av- one of the finest Argentinean schools opportunity to learn from those who Again, it exceeded my expectations. heard of (Lithuania), and one in terprise Corps as the answer. enue to apply what we had learned. of economics, I learned and interacted write business books, but to write with Making friends and sharing classes, which I did not speak or understand The MBA Enterprise Corps recruits Consistent with the transitional na- with a wonderful faculty. In business, them. group discussions, and negotiations the language, for $200 a month. But MBA graduates from top business ture of Lithuania (and most countries however, most of the thought leader- Fabiana’s reaction was, “Ok, but is with Germans, Brazilians, Britons, In- seven years later, that experience re- schools to work in developing and with Corps volunteers), my initial ship comes from the U.S. and Europe, this the only reason to be here?” At that dians, Panamanians, Lebanese, Chi- mains one of the most valuable of my transitional economies as consultants placement fell through because of a and I knew that if I were ever going to point, I answered, “I am also here to nese, Mexicans, Japanese, Russians, life and a perfect complement to my to locally based companies. Owen has bankruptcy related to the organiza- pursue an MBA, it had to be abroad. learn from those who come from all over Bulgarians, Ecuadorians, Francs, Thais, Owen education. participated in this program for approx- tion’s assets. The Corps arranged for a Owen’s assets include the opportu- the world.” No matter how much you Belgians, Koreans, Sri Lankans—to One of my goals in business school imately 10 years, with nine alumni second placement with AB STOMA,

32 SUMMER 2002 OWEN@Va nderbilt 33 GLOBAL BUSINESS SS the first privatized dental clinic and our reality.” After distributor in Lithuania. There, I years of communist • consulted with the largest private oppression, change WORLD BUSINESS OUTLOOK dental clinic and equipment distrib- represented a sig- ALUMNI AND FACULTY OFFER TIPS AND PREDICTIONS FOR INTERNATIONAL BUSINESS utor in Lithuania; nificant shift for • initiated international contacts and Lithuania. Over developed a database of potential time, with a solid partners/investors; rationale, a pro- Exchange Rates and International Business • developed a relationship with the posed change BY DAVID C. PARSLEY World Health Organization to in- could become the troduce preventative dental care to new reality. And lobalization—the shift toward muneration and profit repatriation. For of a common Lithuania; this, I learned, is a more integrated and interde- example, a foreign operation may ap- currency in- • applied for additional funding to not always bad as pendent world economy—has pear profitable simply due to a favorable creases bilateral G DAVID CRENSHAW support the organization’s growth; some ideas get lost introduced both business opportunity exchange rate shift. How will a foreign (country-to- and in our fast-paced and risk. Simultaneously there are new operation be evaluated? country) trade • reached out to the local expatriate environment. We markets for products and services, new Exchange rates complicate and di- by as much as community to increase awareness of sometimes learn opportunities to expand and reduce rectly impact strategic business deci- 300 percent. the organization. and accomplish costs, and new competitors. Of course sions. Indeed, they are often center Such numbers more by getting there is nothing new about uncertainty stage in setting national economic poli- are astonishing. I also solidified skills in areas essential back to basics. in business. But the sheer scope of glob- cy. The launch of the euro, the recent They suggest alization—driven both by policy crisis in Ecuador (where the U.S. dollar there are a lot to global business: effective communi- Cultural differ- Parsley cation, cultural understanding, and ences can cause (NAFTA, and the proposed Free Trade was adopted in September 2000), and of opportuni- leadership development. business to operate Area of the Americas, for example) and the persistent recession in Argentina all ties in the wings. My research quantifies more slowly, but technology—implies that more and testify to the importance of exchange the impact of exchange rates on eco- rates for international business. nomic integration generally. Using a The MBA Enterprise Corps the rewards in- clude new focus, Recent research has quantified the database containing historical prices of recruits MBA graduates to negative impact of exchange volatility specific goods from more than 100 cities perspectives, and Eliminating exchange rate work in developing and thoughts brought on international trade. Eliminating ex- around the world (e.g., light bulbs, volatility through adoption of a change rate volatility through adoption onions, and tennis balls), I (and co-au- transitional economies as to the workplace. Leadership De- common currency increases consultants to locally based velopment: The bilateral trade by as much as companies. best part of my ex- Peter Addei, ’00 (Ghana), associate, linkages between 300 percent. Wachovia Securities, Philadelphia. various perience involved “Fixed income differentiated investment markets/business- Effective Communication: I used to helping to develop Debra Asay and Andruis Josas, a Stoma Star employee, at a banks have been relatively cushioned es in multiple re- take listening for granted. But when leadership. I would Lithuanian dental trade show. more business decisions are being im- against the economic downturn as M&A gions. For exam- you live and work in a country where only be there a and equity underwriting activity has suf- ple, a United pacted. English is a fourth, fifth, or sixth lan- year, but I wanted my contributions to nomic upheaval. I am more global be- fered. Clearly, the bank/brokerage model States-located A specific concern might be how guage, active listening and comprehen- be long-lasting. I was fortunate to work cause of this experience and appreciate has made the investment banking land- banking origina- sion is key. Translation issues and cul- with two “rising stars.” I introduced diversity in the workplace, especially best to expand into a foreign market. scape more competitive with commercial tion team that an- tural differences make effective commu- them to the importance of teamwork cultural diversity. Owen and the Corps Options include exporting, forming an banks leveraging their balance sheets to alyzes and presents nication all the more important. and watched them grow and prosper opened doors to the world for me. I alliance, or building a facility abroad. win underwriting business. Long term, capital-raising al- Cultural Understanding: In con- during the year. look forward to a time when my hus- Which market is best suited for your the goodwill accounting rule may spur ternatives to a Bermuda-based reinsur- trast to the warp-like speed at which My Corps experience empowered band and I return overseas with our firm? How is marketing different in, say, mergers, as European banks seek distrib- ance company that funds syndicates at business is conducted in the U.S., my me to believe that I can do almost any- family, and I can share these treasured Brazil than in the U.S.? What can you ution channels in the United States, Lloyd’s in England, which in turn pro- commercial banks acquire brokerage ca- vides business interruption coverage to experience overseas taught me the val- thing. Day-to-day life with limited lan- experiences with them. expect in terms of labor-management pabilities, and brokerage firms acquire companies in South Africa. Challenges ue of patience and inquisitiveness. I guage skills was challenging, but I de- relations? What special legal hurdles fund managers to secure annuity-like rev- include managing conflicts of interest constantly asked, “Why is this done veloped friendships that will last a life- Debra Asay, ’95, is marketing director for exist? Moreover, cross-border transac- tions generally involve currency con- enue streams. Highlights of internation- ubiquitous in both macro and micro this way, why don’t we consider this,” time and was able to support the posi- Deloitte and Touche in Nashville. al business include the ability to impact global business scenarios today.” often to receive the comeback, “This is tive growth of a company during eco- versions. These impact more than re-

34 SUMMER 2002 OWEN@Va nderbilt 35 GLOBAL BUSINESS SS thor Shang-Jin Wei of the Brookings alized stabilization can provide a greater Among the institutional arrange- Barbados offers the advantage of being the sun dips here, Asia Institution) estimate the improvement stimulus to goods market integration ments in existence, long-term currency only one hour ahead of Eastern Stan- comes on line. As Asia in goods market integration resulting than merely reducing exchange rate unions (e.g., Belgium-Luxembourg, dard Time. goes to sleep, Europe be- from various exchange rate stabilization volatility to zero via an instrumental Panama-U.S., Hong Kong-U.S.) demon- As with software development, the gins again.” DAVID CRENSHAW programs adopted around the world. stabilization. strate greater integration than more re- lead-time to develop new products also An obvious alternative We make a conceptual distinction We find that goods market integra- cent currency boards. All of them, how- can be vastly reduced by sharing the to the 24-hour workday is between institutional versus instrumental tion is increasing over time (about 2 ever, can improve their integration fur- workload among corporate locations in a second work shift in the stabilization of the exchange rate. The percent per year) and is inversely relat- ther relative to a U.S. benchmark. various countries across multiple time home country. This avoids former refers to reducing volatility ed to the distance between markets, ex- All of this is good news for interna- zones. Firms have already been using overhead costs associated through dollarization, adoption of a cur- change rate variability, and tariff barri- tional business. Countries are working electronic communication among geo- with a second team in an- rency board, or another common cur- ers. Markets farther apart, with higher to enact systems to establish and main- graphically separate domestic teams in other country. However, it rency. The latter refers to reducing tariffs, and higher exchange rate vari- tain exchange rate stability. This re- concurrent engineering product de- is hard to find competent volatility through intervention in the ability are less integrated. search suggests that we have yet to real- signs. The next step, which is starting professionals willing to foreign exchange market or monetary In addition, institutional stabiliza- ize all the gains from trade, increased to be implemented, is for employees in work during the evening. policies, i.e., any arrangement other tion provides a stimulus to goods mar- economic growth, and increased trans- one corporate office to work on the de- If you find people to work, than institutional stabilization. Institu- ket integration that goes beyond instru- parency that recent and future changes sign, and at the end of the day electron- they demand a premium tionalized stabilization implies a greater mental stabilization. The impact of the in technology and policy are fostering. ically hand off the design to workers in salary. Furthermore, this degree of commitment and a lower euro on European integration is equiva- another time zone, who continue to approach lacks the multi- probability of reversal in the future. By lent to reducing the tariff rate in each David C. Parsley is associate professor of work until their workday is over. In cultural input essential for removing one more layer of uncertain- country by 4 percentage points—not a management (managerial economics). global products. ty, it is conceivable that an institution- trivial amount. Some predict that working There are potential problems with the 24-hour around the clock will soon not design system across multi- be simply a competitive ple continents. As infor- Thomas The 24-Hour Work Day mation is transferred Eckert, ’90, advantage, but a prerequisite BY LARRY J. LEBLANC across global boundaries, (Germany), for survival against global companies must protect LeBlanc managing di- tilizing less expensive labor in waiting for the American counterparts competition. proprietary design data by storing it in Managers of virtual teams are chal- rector, Global other countries has long been the next morning. This process repeats secure databases. Design information is lenged to use technology in the best Equities, commonplace for international until the project is finished. Rapid and principle, the design can then be hand- a valuable asset that can be critical for way to create a sense of collaboration Frankfurt. “In- U organizations. However, with dramatic inexpensive data communications is ed off to yet another corporate office, the company’s long-term success. There among teams. Teleconferencing, video- vestment bank- improvements in global communica- the key enabler for this type of “follow- where work continues. The design is is also potential for miscommunication conferencing, e-mail, data sharing, Web ing is going tions, some firms are taking this to a the-sun” operations. then returned to the original office. among team members who rarely if ever casts for mass audience viewing, and through a cycli- new level. To decrease the cost and Other countries, including Barbados, This creates the potential for 24-hour meet in person. Cultural differences al- bulletin boards are all important tech- cal downturn but will rebound time for software development, Ameri- Ireland, Israel, Hungary, Malaysia, workdays, drastically reducing time-to- so can become a major frustration dur- nologies, but managers must also decide shortly. When working in interna- can firms are utilizing professional pro- Mexico, and the Philippines, now are market for new products. This also en- ing international collaboration. For ex- when to have face-to-face meetings. tional business, be flexible and al- grammers in India, and European com- competing with India, offering low- sures multi-cultural input to the ample, employees may differ in respect Team facilitators must provide specific ways learning. There are new chal- panies are using software developers in cost, high-skilled programmers. In process, another significant advantage. for hierarchical structure. Western cul- objectives to prevent remote team lenges everyday and you never get other countries as well. many cases, labor costs are six times Some predict that working around the tures place greater emphasis on equality members from going off on tangents. bored. The hard part is the taxing Reasons include lower labor costs cheaper. Some foreign programmers al- clock will soon not be simply a compet- and interact accordingly. Conflicts be- While 24-hour workdays can result in workload and struggle to balance and a time zone difference (in the case so are more productive than American itive advantage, but a prerequisite for tween high-context and low-context tremendous decreases in lead-time in work and family life. Why Owen? of the U.S. and India) of approximately or European ones. Low-tech firms such survival against global competition. communication styles also occur. Asian such areas as software and new product I chose Owen because of the rep- 12 hours. American programmers can as Citibank, Holiday Inn, Liberty Mu- A vice president of product technol- cultures traditionally utilize high con- development, it should be recognized utation of the finance faculty, the develop overview designs for software tual Insurance, and GE Capital, as well ogy at one worldwide manufacturing text communication, with much of the that a higher level of management in- flexible curriculum, and the small- modules during their day and then as high-tech Boeing and IBM have company sums it up: “We’d like to cut meaning conveyed implicitly. This im- volvement is required to avoid inherent er size of the School. At Owen, I hand them off electronically to Indian benefited from overseas software devel- our development time by two-thirds. plicit communication is difficult for problems. established a network of overseas programmers, who write the details dur- opment. For U.S. firms desiring low- To do that means having people work- Westerners to interpret, and may be contacts and a sense of global in- ing their day while the U.S. program- cost professional programmers who can ing in Europe. As the sun sets there, de- completely obscured in electronic com- Larry J. LeBlanc is professor of terrelatedness.” mers sleep. The completed work is communicate during the American day, velopment begins in the U.S. When munications. management (operations).

36 SUMMER 2002 OWEN@Va nderbilt 37 GLOBAL BUSINESS SS

The Team That Isn’t DAVID CRENSHAW Globalization of e-Commerce BY DAVID A. OWENS BY DAVID M. DILTS

hile it may sound like the reconsider reliance on face-to-face he Internet, almost from incep- title of a Twilight Zone meetings. The proliferation of comput- tion, had the potential to trans- episode, “the team that er-mediated-communication (CMC) form global communication. W T DAVID CRENSHAW isn’t” describes a trend among today’s technologies makes the creation of vir- With near instantaneous information global businesses—using teams that tual teams relatively straightforward transmission capabilities, it is now pos- don’t actually meet, at least not face-to- and inexpensive. Most personal com- sible to achieve 24/7 manufacturing face. Focused on information-process- puters come packaged with stable, se- and service worldwide at unprecedent- ing and decision-making tasks, these cure, serviceable, and free applications ed volumes. virtual teams transcend time and geog- such as NetMeeting and Instant-Mes- Prior to the pervasive use of the In- raphy by using cyberspace as the mode senger, allowing team members to share of interaction. documents and to initiate impromptu videoconferences and chat sessions While B2C e-commerce may with surprising quality and ease. And Owens generate inches in the popular Particularly in global for many teams, whose communications press, it is the more traditional companies, economics drive primarily take place via email, virtual people together. Teams understand the Dilts meetings can represent an increase in value of insights and innovations de- B2B where the greatest volume the adoption of virtual ment time while increasing quality. India, and the Philippines. For GXS, spontaneous informal interaction with- rived from working “around the table,” of worldwide e-commerce is The Internet and communication this global perspective extends to elec- technologies. out the overhead that comes with ar- but resulting costs in travel, lodging, ef- taking place. technologies also change the general tronic commerce service centers in the ranging and hosting formal meetings. ficiency, and lifestyle make routine use dynamics of the global make/buy deci- U.S., The Netherlands, and Hong Particularly in global companies, of such meetings unappealing. sion. Harvey Seegers, CEO of GE Glob- Kong. Many managers think that a “good economics drive the adoption of virtual There are significant benefits to us- ternet, Eastman Kodak, for example, al eXchange Services (GXS), during his Another point raised by Seegers is working relationship” requires plenty of technologies. For businesses with offices ing virtual teams, but care should be completed its single-use camera in talk at Owen, discussed how the com- that while business-to-consumer (B2C) hands-on contact, but several com- and clients across the globe, travel costs taken about when and how to use record time by using advanced telecom- pany extended its engineering teams e-commerce may generate inches in the pelling factors are causing businesses to present a substantial barrier to bringing them. Research suggests that virtual munication capabilities. Design engi- beyond the U.S. to Ireland, the U.K., popular press, it is the more traditional teams are best for identifying and ex- neers worked on the prototype for 8 plicitly sharing unique knowledge (for hours in Rochester, New York, and Aneta Marcheva Key, ’99, (Bulgar- school with a brainstorming or teams looking for a then transmitted the design to Japan. ia), engagement manager, McKin- strong finance Gerd (Gary) Kommer, ’93, (Ger- among others. “right answer”), but face-to-face teams At the end of the Japanese workday, sey & Co., San Francisco (currently program, an em- many), head of project and finance Working in glob- are better for tasks involving tacit, sub- the design went to Europe. When the on assignment in Australia). phasis on emerg- team, HVB Group (HypoVereins- al business does jective, or difficult to express issues. Rochester design engineers began work, “Management consulting is flexible ing technologies, bank AG—third largest bank in Eu- not automatically Face-to-face teams also are more effec- the design was downloaded from Eu- and relatively immune to economic and a diverse stu- rope), Johannesburg. further your ca- tive for tasks that require members’ rope. In this way, Kodak designed a rad- cycles. With the general downturn, dent body with “Project finance as a specific financ- reer. But you will “buy-in” for ultimate success. Other de- ically new product in only 18 months consultancies will shift their focus, at least 25 per- ing technique for large industrial or most likely benefit termining factors include task-type, by working 24/7 worldwide. e.g., from developing expansionary cent internation- infrastructure investments has a a great deal per- group size, team culture, and require- With the Internet, such communica- strategies to helping companies im- al students, so Owen was a natural grand future. Several ‘mega trends’ sonally—living ments for speed, trust, cohesion, and tion extends beyond “traditional” se- prove profitability. To be successful choice. Owen also supports strong support this view: governments’ cash and working commitment. quential 24/7 through simultaneous col- in global business, be culturally sen- international candidates and makes crunch, companies’ desire to man- abroad expands your mind. When I Best performance can be achieved by laborative design environments that sitive to your business counterparts. it possible for them to attend. While age their involvement in major pro- am old, I want to look back on a life hybrid teams, which learn the advan- transcend national boundaries. Current Be versed in global affairs. Know there, I gained an appreciation of jects in terms of risk allocation and in which I saw different places, peo- tages of each interaction technology collaborative design technologies allow your geography. Always smile—what various cultures and ‘national per- book equity return more efficiently, ples, and cultures. Experiencing only and appropriate ways to use them. design engineers in multiple locations a universal way to establish a con- sonalities,’ and a source of stories I higher possible leverage in project fi- one culture over my lifetime to me to use virtual reality technologies to nection to another human being! can use as ice breakers with people nancings, large unmet infrastructure would be disappointing.” David A. Owens is clinical assistant pro- “walk-through” designs and make joint Why Owen? I wanted to attend a from around the world.” needs in the emerging markets, fessor of management (entrepreneurship). design decisions. This technology should dramatically reduce develop-

38 SUMMER 2002 OWEN@Va nderbilt 39 GLOBAL BUSINESS SS business-to-business (B2B) where the but B2B dollar volume at $449 billion international electronic mailboxes ex- greatest volume of worldwide e-com- (http://line56.com/articles/ ceeded the number in the U.S. This Intercultural Communication merce is taking place. For example, NewsID=3345). While B2B metrics vary trend of higher international growth BY HEIKI MIKI GXS has more than 100,000 trading widely, from estimates at $245 billion by rates extended to the latest figure of on- partners in 58 countries, with 1 billion U.K.-based firm Ovum to $5.2 trillion by line users, where Canada and the U.S. n today’s electronic and global mately how it determines behavior. By annual transactions accounting for $1 Computer Economics, there is no ques- were 35.2 percent of the worldwide to- world, intercultural contact, not understanding what culture is or trillion in goods and services. tion that B2B dominates the economics tal of 513.41 million (NUA Internet, Iwhether face-to-face or virtual, is a how it works, they cannot really know Such volume dwarfs all the most pop- of value in the Internet realm. August 2001). fact of life in most organizations. As how cultural differences can be prob- ular B2C sites. eMarketer, the Internet Then why do B2C sites get the ma- Clearly, the Internet, while not “born general manager of marketing for an lematic in the workplace. marketing firm, estimated B2C dollar jority of the press? One reason could be global,” has “gone global” and this glob- international integrated steel manufac- There is no doubt that English is rec- volume at $53 billion worldwide in 2001 that they generate far more “hits” than alization will continue to have an ever turing company, I literally perform in- ognized as a de facto international busi- do B2B sites. Nielsen/NetRatings in increasing impact on successful basic tercultural communication every ness language because of the rapid May 2001 estimated that eBay.com and business models. The impact can be as minute, even every second: Talking spread of Internet/e-mail communica- Charlie Scragg, ’01, (England), Amazon.com had about 14 million beneficial as the ability to perform 24/7 with our Japanese CEO to create mar- tion. Therefore, you find a great num- associate, Lehman Brothers, unique visitors each, far more than the global design or as restrictive as the EU keting strategy to supply galvanized ber of “English dialects” around the Bangkok. nearest B2B, UPS.com, at 2.8 million. ruling in February that Internet firms steel products to American automotive world. (e.g. “Japanglish: English spoken “My group structures financial Interestingly, when the metric changed selling in the EU must collect value- companies, negotiating with Mexican by native Japanese. Major characteris- products around real estate-based to the amount of online revenue gener- added tax (VAT) regardless of their traders to export Hot Rolled steel prod- tic: there is no clear distinction in pro- projects and has found consider- ated, B2B sites dominate with physical location. Only time will tell ucts to South American construction nunciation between “R” and “L”, “B” able opportunity in Asia’s eco- Intel.com at $23.8 million, nearly 11 which business models will be the most companies, and exploring new business and “V”.) As you begin doing business nomic turmoil. While the U.S. ap- times that of Amazon.com at $2.18 mil- successful in this ever evolving environ- opportunities with Japanese traders to in the global arena, you will likely en- pears to be recovering from its re- lion. But these numbers are only for do- ment. sell our sound dampening laminated counter heavy accents in cross-cultural cent slowdown, Asia still has mestic Internet. steel sheets to German automotive settings. What should you do if you find deep-rooted problems to address Globally, communication on the In- David M. Dilts is professor of companies through American owned it difficult to communicate with people to ensure a sustainable recov- ternet also underwent a significant management (operations) and professor of steel sheet processors. No single busi- who speak different English dialects? ery. One of these problems is change in 2000, when the number of management of technology. Hiring an interpreter is not the best so- Miki working out the large volume of lution. The important thing is to listen Mutual understanding of one grounds is key to successful intercultur- non-performing loans held by do- carefully, talk slowly, avoid jargon, and al communication. mestic banks, and is my current another’s cultural backgrounds be patient in order to foster mutual trust Lara Schalken, ’97, (USA), former The difficult part is you cannot gain focus at Lehman. To prepare for is key to successful intercultural and understanding of the underlying director of Asia/Pacific market de- knowledge of other cultures from books the global economy, try to work cultural differences. Exploring cultural velopment, E.Solutions, EDS, (now communication. or videos. You must experience cultures or at least travel abroad. It is diffi- differences is time consuming but living in The Netherlands). firsthand in order to gain an under- cult to get an appreciation for the worthwhile if you want to be an active “Asia/Pacific lags behind the U.S. standing effective enough for the busi- many different cultures and busi- ness transaction resides within a single player in today’s global business world. and Europe in terms of e-business ness world. ness practices if you never set foot cultural boundary. Most of us want to communicate ef- penetration, which presents oppor- Owen students don’t need to spend outside your home country. My Although my situation is extreme, fectively but do not have a keen appre- tunities. Australia and New Zealand a lot of money visiting foreign coun- solution was showing up in Hong such contact is not unusual in today’s ciation of barriers, particularly “noise,” lead the region in innovation. China tries to study different cultures. They Kong as a 23-year old backpacker interlinked world. Nearly everyone which is interference between the mes- is the largest untapped market but, paid that price in tuition to the Owen and taking my first job working in works with coworkers, customers, sup- sage sender and receiver, and provides along with ASEAN countries, is School. I recruit international students a bar. Why Owen? I wanted to pliers, consultants, and others from dif- an opportunity for something to go working to create the largest trading and know Owen has top-notch stu- study in the states to learn the ferent cultural backgrounds, and doing wrong. In global business, cultural dif- block in the world. Japan is ripe with know more about the U.S. than we dents from all over the world. The stu- U.S. approach to business and fi- so effectively is crucial to an organiza- ferences can be the most serious noise opportunities—many Japanese com- know about Europe or the rest of dents have within their reach a valu- nance. Owen’s smaller program tion. factor, and competent international panies still rely on paper-driven the world. Travel abroad, learn a able asset for acquiring skills to deal provided the perfect environment Business people talk about the im- managers need to be aware of differ- processes in day-to-day business, foreign language, and take the op- with different cultures—each other. for this, with the right mix of out- and e-business solutions can ad- portunity to work overseas with your portance of intercultural communica- ences and know how to cope. Noise standing faculty and gifted, but tion, but many, particularly in the can’t always be overcome, but just dress these challenges. As an Ameri- company. It will expand your view of Heiki Miki, ’96, is general manager/mar- more important, friendly student states, do not truly understand culture. knowing that it exists can improve can living abroad, I am constantly the world and help you to see solu- keting and planning for National Steel body. They don’t know how culture operates, communication flow. Mutual under- reminded that Europeans tend to tions from other perspectives.” Corporation. how it helps shape attitudes, and ulti- standing of one another’s cultural back-

40 SUMMER 2002 OWEN@Va nderbilt 41 GLOBAL BUSINESS SS International Human Resources BY RENEE FRANKLIN

he most valuable resources in Tim Hough, ’95, (USA), director, pare for the years ahead, consider any company are the human re- business development, Asia/Pacific, entering the global market. The U.S. T sources. Retek, Tokyo. is only about 29 percent of Global Most of you probably agree with this, “I am establishing Retek’s Japan GDP. If you limit your business deal- so I will focus on the challenge of maxi- subsidiary and developing the go-to- ings to less than 30 percent of the mizing the human resources in your market strategy. Competition is market, ultimately you will be over- global organization into a force that ubiquitous—but some competitors taken by those competing on a glob- others admire but fail to copy. Most poised to dominate the market seg- al scale. Highlights of international companies do not know how to do this ment only two years ago are now business: the food, the energy, the within their home countries, let alone out of business. The speed of culture, being the only non-Chinese Gantiah Wuryandani, ’93, across borders. change is remarkable; the message is person in a city of 800,000.” (Indonesia), economist, Bank What should you consider? The old ‘simply evolve or die.’ To best pre- of Indonesia, Jakarta. saying “think globally, act locally” ap- “As globalization has devel- plies here. Although your company oped, international economy may compete in a global economy, take has become integrated, making care to “meet your employees where the language of your host country. Even the challenge to “meet employees every country easily affected by they are.” if you do not become fluent, under- where they are,” and create an environ- other countries’ economic situa- While most corporations recognize standing the language is part of “meet- ment around the world that delivers tions. The financial crises since market differences in compensation and ing employees where they are.” awesome business results and has every- the ’90s prove the process of benefits, they often do not for such ar- Someone once said, “If you want one wondering how you did it. economic integration. With eas as communications to employees, everything to be like it is at home, then rapid development in high tech- performance review systems, recogni- stay at home.” This applies not only to Renee Franklin, ’89, is director of human nology, information and tion programs, and culture change ini- individuals, but organizations as well. I resources for Ford of Mexico. telecommunication have be- tiatives. As a leader, your challenge is hope you and your organization accept come cheaper and readily avail- to create an environment where the able, driving the borderless and spirit of the global corporate culture timeless international transac- and policies guides local action while tions that bring increased risk. keeping methods of implementation Increased risk means increased flexible. Roland Seidel, ’96, (Germany), ment) but be management consultant, Arthur D. well prepared competition and challenges. In Little, Munich, Germany, (recently in such classic order to survive, those who Although your company may on leave to travel around the fields as orga- work in the global economy need to be prepared for change compete in a global economy, Franklin world). nization and “Management consulting is coming cost manage- that can arise in minutes.” ferently in different locations. Employ- to do your best to find a win-win situa- take care to meet your out of the growth stage and will ment. I have ee wants include, but are not limited to, tion for them and your business. Pay at- stagnate. Strong competition based worked Owen, the Law School, and Col- employees where they are. safety, respect, fair treatment, and tention to these things daily, and insist on cost management and reputation throughout lege of Arts and Science are co- recognition for a job well done. There is that others in your organization do so as will dominate the market. Expect Europe, in also an unspoken want that is key to a well. hosting the European Union mergers and acquisitions and shake- Asia, and the Successful maximization of human great organization and is hard to copy. Lastly, if you undertake an interna- Studies Association 8th Biennial out. In preparing for international Middle East, and learned about dif- resources begins person to person. Re- Most employees want a commitment tional assignment, use your functional International Conference in business, learn at least one (better ferent cultures and markets. This is gardless of location, employees general- that if they do their best for you, you and leadership expertise to teach em- Nashville March 27-29. For more two) foreign languages in addition valuable experience for working with ly want the same basic things. Be aware, will do your best for them. This doesn’t ployees in your host organization, but information on the conference, to management skills. Learn social a global company, but you can lose however, that basic wants may be the mean employees get everything they also remember to learn from your new email [email protected] or visit the skills (human resource manage- your roots!” same, but they manifest themselves dif- want. It does mean that they trust you environment and work partners. Learn Website: http://www.eustudies.org.

42 SUMMER 2002 OWEN@Va nderbilt 43 Excellence Workshop at IN- Reporter, and “Does the Mar- STARTING THINGS SEAD in Fontainebleau, France. ket Value Environmental Per- He also presented a talk on formance?” in Review of Eco- ruce Lynskey, ’85, is always trying to start something. Chief mar- facultyNEWS “Valuing Time in Make to Stock nomics and Statistics. He served Bketing officer for a number of successful high-tech start-ups, and Manufacturing” at the Informs as visiting professor of crimi- occasional angel investor, Lynskey is now at Owen as a clinical assis- Conference in Miami. nal justice economics at the Bruce Barry, associate profes- Conflict Management in Cergy, University of York (UK), where PEYTON HOGE tant professor working with Professor Germain Böer and David sor, presented an invited paper France, and he chaired a re- Mark Cohen, professor, hosted he worked with the Centre for Owens, clinical assistant professor, to accelerate Owen’s entrepre- on the role of emotion in nego- search incubator workshop on an executive management Criminal Justice Economics neurial activities. tiation at a conference on cul- “Conflict and New Media” at workshop on “Corporate Envi- and Psychology. ture and negotiation at North- the annual meeting of the ronmental and Sustainability In his new and unexpected role (“I never dreamed I would be teach- western University, and dis- Academy of Management in Reporting: A New Look for the Bruce Cooil, associate profes- ing.”), he brings practical experience to the classroom and spends time cussed his work on negotiator Washington, D.C. Barry re- Information Age.” He chaired sor, co-authored a paper (with connecting Owen to the local business community. He has garnered a attitudes toward the use of un- ceived a secondary faculty ap- conference sessions on “The Sajeev Varki and Roland T. number of advisory board seats with Nashville companies—both start- ethical tactics in a talk at the pointment in Vanderbilt’s De- Impact of New Digital Tech- Rust) that was a finalist for the Department of Psychology at partment of Sociology. nologies on Information Regu- 2001 Paul E. Green Award, ups and established companies—that keep him abreast of business the University of Virginia. A pa- lation” at Wharton, and “Capi- presented by the Journal of Mar- needs and apprised of opportunities for student projects at these com- per (with Ph.D. student Ingrid Joseph D. Blackburn Jr., James tal Markets and Environmental keting Research to the paper that panies. “Students working on these projects say it is one of the most Fulmer) on “Effects of comput- A. Speyer Professor of Produc- Performance” in Laguna Beach, “shows or demonstrates the valuable parts of their education,” Lynskey says. “The businesses also er-mediated communication tion Management, gave an in- California. Recent articles in- most potential to contribute technology on social influence vited talk on “Understanding clude “Information as a Policy significantly to the practice of benefit because they get top caliber talent for free.” in organizations” was presented Drivers of Productivity in Soft- Instrument in Protecting the marketing research.” The pa- Companies he helped found and their products include Wellfleet at the annual meeting of the In- ware Development” to the Re- Environment: What Have We per also received the 2001 Communications (bought by Bay Networks and acquired by Nortel), ternational Association for search in Information Systems Learned?” in Environmental Law Donald R. Lehmann Award routers and switches; Top Layer Networks, Layer 7 switching technol- ogy for intrusion detection; Kaon Interactive, 3D Web animation soft- ware; and Vigilant Networks, embedded network monitoring technol- MAKING FIRST IMPRESSIONS COUNT ogy products.

ontrary to what some companies believe, failures with Now she will PEYTON HOGE His special sauce for start-up success: a blend of unreasonable am- Ccustomers cannot always be repaired, says Ruth be helping Owen bition, aggressiveness, a natural talent for getting things done (“meet- Bolton, a marketing professor who joined Owen in January. make good first ings are the death of a start-up”), and the right corporate culture. “The “First impressions are difficult to change, and the impressions right culture can’t be manufactured; it just happens,” he says. “And chance of salvaging a mistake made early with a customer through her high- don’t underestimate the role of luck and timing in the success of a is small—even if it is an excellent company,” she says. ly visible position company.” —Beth Matter as editor of the Lynskey Bolton begins a three-year term as editor Journal of Market- ing, a leading from the American Marketing Cost Analysis of Mergers,” transmission of news events ness. Jeter has been reap- of the Journal of Marketing. Association. and presented a paper (with (specifically sovereign credit pointed to the editorial advi- publication by Vanderbilt math professors rating changes) concerning sory and review board of Ac- the American Ray Friedman, associate pro- Steven Tschantz and Philip one country on sovereign counting Review. Bolton’s information comes from her research in which Marketing Associ- fessor, launched his world- Crooke) at the Miami IN- bonds of other countries. wide, Web-based negotiation FORMS sessions on Second- Piyush Kumar, assistant pro- she tracks individual customers “to see how closely their ation for scholars research project (See Price Auctions with Power-Re- Debra Jeter, associate profes- fessor, presented the paper behavior reflects their opinions and experiences with a and practitioners. http://vanderbilt.edu/negotiation lated Distributions. sor, co-authored a paper “The Drivers of Customer and company over time.” Bolton will serve for more information and to (with Paul Chaney and L. Corporate Profitability: Mod- She began her academic career by analyzing customer as editor for three participate). He also has sev- Amar Gande, assistant pro- Shivakumar) that was present- eling, Analyzing, Measuring, eral new working papers on fessor, discussed a research ed at the AAA meeting in At- and Managing the Causal Re- behavior from supermarket optical scanning equipment, years, during which Bolton minority employee network paper, “Strategic Decision lanta last year, and also at the lationships” at the Annual later transferring her expertise to GTE’s customer satisfac- time Owen will pro- groups, and one accepted for Making of the Firm Under Asia-Pacific Conference on In- Frontiers in Services Confer- tion and quality program as a member of its technical staff. vide support services. (Website: mba.vanderbilt.edu/jm) publication, “Managing Diver- Asymmetric Information,” at ternational Accounting in Rio ence at the University of Mary- th The Carnegie Mellon Ph.D. graduate returned to academia What emerging topics are sure to get ink? Marketing sity and Second-Order Con- the 12 annual conference de Janeiro. Another paper, land. He has been appointed flict,” in International Journal of on Financial Economics and “The Information Content of to the editorial review board and focused on linking customer satisfaction measures and metrics; synchronization of multiple, complementary chan- Conflict Management. Accounting at Rutgers Univer- Restructuring Charges: A Con- of Journal of Service Research. operational measures to revenue streams. She most recent- nels within and across organizations; the role of technology sity. Gande (with David Pars- textual Analysis” (with Chaney ly served as the Ruby K. Powell Professor of Marketing at in how markets function and evolve; and global marketing Luke Froeb, associate profes- ley) co-authored a paper on and Chris Hogan) was pre- Ronald Masulis, Frank K. sor, gave a talk last year to the “News Spillovers in the Sover- sented at the first annual Houston Professor of Finance, the University of Oklahoma. challenges, she predicts, red pen in hand. —Beth Matter FTC on “Quantitative Benefit- eign Debt Market,” examining Hawaii Conference on Busi- co-authored a paper, “Does

44 SUMMER 2002 OWEN@Va nderbilt 45 facultyNEWS reunion

ANSOFF, OWEN’S FIRST DEAN, REMEMBERED WEN

REUNION SCRAPBOOK ’01 O

gor Ansoff, the first dean of the high school, soff MBA Scholarship. IGraduate School of Manage- he studied at Fluent in Russian, French, and WHEN MBAs COME BACK TO 25th ment—which later became the Owen the Stevens German, Ansoff received many in- CAMPUS, HAVING FUN IS THE Graduate School of Management— Institute of ternational honors, including being BOTTOM LINE died July 14 in San Diego, Califor- Technology named fellow of the International “After 25 years, nia, from complications from pneu- where he Academy of Management and Hon- reat company and great food were the order of the life is beautiful, and we all had monia. He was 84. earned a mas- orary Chairman of the Strategic day when classes ending in 1 and 6 reunited last fall our second start during Homecoming weekend. Alumni enjoyed a at GSM.” — Ansoff also served as founding ter of science Management Society of Japan, G Marc Fortune, dean and professor of management in “Dynamics where he received five honorary doc- cocktail reception, class parties, a game day brunch, and most chair.

from 1968 to 1973 and was the Dis- of Rigid Bodies.” He later studied at torates. He also was decorated by of all, seeing each other again. PHOTOS BY PEYTON HOGE AND WOODIE KNIGHT tinguished Justin Potter Professor of Brown University where he received numerous other respected organiza- Free American Enterprise from 1973 a doctorate in applied mathematics tions, including the Helsinki School to 1976. and joined UCLA in the senior exec- of Academica in Finland; Academia

“The School owes a deep debt of utive program. During World War II Italiana di Economia Aziendale in Dean Bill Christie with Sam and Evelyn gratitude to Dean Ansoff and his and into 1946, he was a member of Italy; the University of Bath in the Richmond. courage in building the School from the U.S. Naval Reserve, and an in- United Kingdom, and the Manches- the ground up,” says Dean Bill structor in physics at the U.S. Naval ter Business School. The Class of 1986 speaks for itself. Christie. “I hope he was gratified by Academy. A celebration of Ansoff’s life was From left: David Jones, David the School’s success over the past To honor his body of work, the held August 31 at San Diego’s Hornsby, Tom Rose. David Reminiscing about classes in the funeral home raised Hornsby, chair. decades.” prestigious “Igor Ansoff Award” was Scripps Ranch Library. He is sur- the spirits of those from EMBA 1981. From left: Turney Stevens, Dean Sam Richmond, John Wilkinson, Henry Ansoff retired two years ago as a established by Coopers and Ly- vived by his wife, Dorothy, and Lodge, Roger Bowman, and Julia Howell. Roger distinguished professor, emeritus, brand in 1981 in The Netherlands. sons, Peter, Rick, and Chris. The Bowman and C. Turney Stevens, chairs. from the U.S. International Universi- It is given for research and manage- family asks that contributions be ty in San Diego, where he taught for ment in the study of strategic plan- sent in his memory to The Ansoff In- 20th 17 years. ning and management. The Japan stitute, 2166 Lemon Avenue, Escon-

Ansoff was born in Vladivostock, Strategic Management Society also dido, California, 92029. Chancellor Gee mingled Russia, and immigrated to the U.S. established an annual award in his with alumni during the 15th cocktail party. with his family. After graduating name. Vanderbilt established an An- 10th Market Structure Affect How Neta Moye, assistant profes- David Parsley, associate pro- in France last year as part of Quickly Stock Prices React to sor, served on the panel for fessor, last year served as a re- their Semester in English. Stu- 5th News?” accepted for publica- the “Genetic Testing of Hyper- search fellow at the Hong dents were from France, tion in the Journal of Financial susceptible Workers” discus- Kong Monetary Authority, Japan, Korea, United States, and Quantitative Analysis. Ma- sion hosted by Vanderbilt’s where among other thingsw he New Zealand, England, Ger- sulis served as a discussant at Cal Turner Program for Moral studied the effects of currency many, and Sweden. the Corporate Governance in Leadership. She delivered an pegs and unions on overall the Banking and Financial Ser- invited presentation on “Your economic integration. He pre- Fred Talbott, clinical profes- vices Industries symposium, Next Employee” at the Ethics sented his findings to the sor/management communica-

sponsored by the Federal Re- Officers Association Annual HKMA and Bank for Interna- tions, shared news media rela- Angie Brittain and Sara Gates, inset, recall finance pro- serve Bank of New York, Jour- Conference, and delivered an- tional Settlements. tions and crisis communica- fessor Bill Christie, now dean, walking into class wearing nal of Financial Intermediation, other invited talk on “Motivat- tion advice last year with mu- a T-shirt with the words “You don’t know me—Federal Witness Protection Program,” after his breakthrough and New York University. Dur- ing Employees to Share Knowl- Gary Scudder, professor, sic industry and entertainment research paper on Nasdaq pricing caused a media frenzy ing spring, he was a visiting edge” at the Air Force Acquisi- taught the course “Technolo- attorneys at ASCAP, hosted by The EMBA 1991 party was a great time, even without a hot tub on a trailer. in 1994; Sonia Parechanian, Professor Dewey Daane, and faculty member at Dart- tion’s Work Culture Transfor- gy in the Corporate Strategy” the Tennessee Bar Association. From left, back: Ray Bowling, Ned Horton, Warren Runion, Louis Buck, Liz Shults enjoy dinner at the Belle Meade Country Club. Frank Grant, John Abbott; seated: Tracy Grant, Catherine Holsen, Nancy Sara Gates and Liz Shults, co-chairs. mouth. mation board meeting. at the University of Bordeaux Abbott. Nancy Abbott, chair. A different perspective

46 SUMMER 2002 OWEN@Va nderbilt 47 reunion

WEN Join us for Reunion 2002

O MAXIMIZING (October 25-26), sure to be an extraVU- ganza! Activities will include a home- Paul Chaney, associate professor of management (ac- Your Owen Experience coming parade, tailgate party, and foot- class counting), in February, led Alumni and Development’s ball game; educational events; dinner ACTS first Brown Bag Chat, which focused on the Enron cri- and dancing; and even more Vanderbilt sis. More than 20 alumni participated. A full transcript memories. Check your mailbox and the Owen alumni Website for more infor- Please Note: Class Notes only appear in of the discussion can be found on the Owen Yahoo

DAVID CRENSHAW mation and updates. If you would like the print version of this publication. Club site at http://groups.yahoo.com/group/owengsm. to help plan your class event, contact Mercy Eyadiel, director of alumni pro- grams, at mercy.eyadiel@owen. vanderbilt.edu or (615) 322-6468.

SCHEDULE Friday, October 25 Alumni Board Meeting 8:30-11:30 a.m. Owen School

Registration 10:00 a.m. - 8:00 p.m. Owen south side lobby

Entrepreneurship Conference Free admission for the first 30 alumni Schedule of speakers and topics http://mba.vanderbilt.edu/oec.

View VU- Owen Cyber Café (demon- stration of wireless technology and tour of Owen’s latest renovations.) Coffee and desserts served Members of the Owen Alumni Board met with students last year and explained the 1-4 p.m., Owen south side lobby importance of student and alumni involvement in advancement of the School. From left, back: Don Townswick,’92, Jeff Kudlata, E’96, Brent Turner, ’99, Steve Summers, ’99; Cocktail Reception with Dean Bill DAVID CRENSHAW front: Sara Gates,’96, Renee Franklin, ’89, Jack Driscoll, ’00. Christie 6:30-8 p.m., Owen lobby

n MBA is a long-term invest- recommending and mentoring students, Saturday, October 26 ment, but students reap many and providing jobs. Registration benefits before graduation, “Because of our small alumni base, it 8:00 a.m. - 9:00 p.m. A Rob Roy Purdy Field alumni board members told students at is even more critical that our alumni (25th Ave. So. at Capers Ave.) a session on alumni life last year. contribute than it is for alumni at some Students have the advantage of other schools,” said Jeff Kudlata, E’96, Chancellor’s Address Owen’s small size and excellent practice leader/leadership for Verizon 9:30-10:30 a.m., Student Recreation Center Gym student/faculty ratio (10:1), which Communications. provides a superb learning and social Students can adopt the alumni Homecoming Brunch environment. Students also can tap the mind-set early and assist in such ways as 10:30 a.m.-1 p.m., Rob Roy Purdy Field Tailgate Party global alumni network that is ready and promoting the School to prospective 11 a.m.-1 p.m., Jess Neely Dr./Stadium willing to provide job information and students and helping to collect alumni contacts, board members added. email addresses, used to keep alumni Homecoming Game Connecticut vs. Vanderbilt But with these advantages, come informed of activities at the School. 1 p.m., Stadium responsibilities to make Owen an even The result of combined student and better school for future generations. alumni effort is a greater school and ap- All Owen Alumni Dinner/Dance Dean Bill Christie, right, thanks Robert Falk, E’80, left, for the outstanding alumni reception he held at Alumni can help advance the School preciated Owen degrees, board mem- 7 p.m. to 12:00 a.m. (Dancing—9 p.m.) Owen lobby his home in Nashville in March. For a complete listing of all of the alumni receptions in various cities, in such ways as donating money, bers echoed. check Owen’s alumni Website.

48 SUMMER 2002 OWEN@Va nderbilt 49 classACTS

ALUMNI PRIORITY # 1 DAVID CRENSHAW

Helping students to find jobs in this tough economic time is priority #1 for the Alumni Board. Last year, students packed Flynn Auditorium at the Law School to hear Owen alumni offer career advice. Ron Ford, E’92, past president (top photo), and Don Townswick, ’92, vice president, were two alumni board members leading informational sessions. DAVID CRENSHAW

50 SUMMER 2002 OWEN@Va nderbilt 51 classACTS profile

FLYING HIGH ALUM t’s not a job everyone would want, his compensation Isince September 11 when flying through year-end. the friendly skies turned potentially During this time, deadly. But W. Douglas Parker still airline executives loves his work. As chairman, presi- also worked with dent, and CEO of America West, the FAA, which in the nation’s eighth largest airline, turn worked with the buck stops at his door at the the FBI, to company’s headquarters in Phoenix, scrutinize passenger Arizona. lists and identify Although he had worked in the those who should airlines since graduating from Owen not be allowed on in 1986, he had held the position of airplanes. chairman and CEO of America Time and events West for barely a week when blurred together, airplanes hit the Pentagon, World preventing Parker Trade Center, and a field in from attending his Pennsylvania in September. Parker lively 15-year Owen admits it was “baptism by fire.” reunion last year, The entire fleet was grounded for something he two to three days. Bookings regrets. Through plummeted; refund requests Owen teamwork, he skyrocketed. A financing deal fell became part of a

through. Never could Parker have contingent of 10-15 Parker RAIG AMBROSIO dreamed he’d shortly be among the friends who remain airline executives testifying before close to this day. that has constant change. No one the House Transportation Following graduation, he started function dominates—they’re all Committee, “We need government as an entry-level analyst for intertwined. There’s finance, as assistance, and we need it quickly.” American Airlines. After five jobs in airlines are heavily capitalized; In the week after the attacks, air four years with American, Parker marketing, because we’re a service traffic decreased 60 percent in a moved to Northwest Airlines as business; operations as complex as year already down by 10 percent. “It director of finance. “American was a you can imagine; and maintenance, was devastating, to say the least,” well-run airline, and at the time, which is basically a manufacturing recalls Parker. Northwest needed help,” Parker says. function. It keeps me interested.” “We all had to make decisions He left Northwest Airlines four Parker seems to thrive flying we had never made before and years later, in 1995, for another high, where the air is thin. “We didn’t like making,” he says. More airline in flux. America West had have one great team. I have the than 100,000 people were laid off just emerged from bankruptcy, and luxury of running a company in an industry-wide. America West he took over as CFO. In early 2000 industry I love.” And despite the reduced their workforce by 2000 he became president. pressures of keeping the jumbo jets from a total of 14,000. Parker asked “It’s a very competitive, safely flying, “I can’t complain.” the board of directors to forgo all of fascinating, high profile industry —Carol Wissmann

52 SUMMER 2002 OWEN@Va nderbilt 53 Success at Owen and Beyond

Ron Ford, E’92, past president of the Owen Alumni Association and president of Media Arts Group, Inc.; and Sara Gates, ’96, secretary of the alumni association and director of product strategy and marketing for Waveset Technologies, offered tips last year to first-year students on how to be successful students and alumni:

FORD: GATES: On being a good alumnus: Follow your heart. You will feel pressure to conform Help Owen when asked. This certainly includes giving and achieve what others perceive to be success. Do financial support to Owen. But there are other ways to what you love, regardless of what others think. help: Attend receptions for potential students in your Challenge the notion that people act rationally. To city and be an ambassador for Owen. Stay connected make complex situations understandable, theorists will with the School, and grow your network by attending ask you to assume that people act rationally. They alumni events. When a student calls to ask for career don’t. advice, take their call and do your best to help them. Take advantage of Vanderbilt. Attend concerts and Recognize ways to help Owen even when not asked. events on campus outside of Owen. Make friends with Encourage talented professionals headed for an MBA Vanderbilt’s award-winning faculty. Learn who the program to consider Owen. A reference from a alumni are in your target city and get to know them. successful alum is a powerful recommendation. Develop yourself beyond the classroom. Read. Take advantage of the tremendous Owen and Consume current events. Keep physically fit. Learn to Vanderbilt resources available to you. Leverage the communicate: The number two complaint of recruiters Center for Entrepreneurship. Call the Career is MBAs’ inability to articulate. Learn to play well Management Center or a faculty member when you with other children: The number one complaint of need student help on a project. Use the Walker recruiters is MBAs’ inability to work well with others. Library for a research project. Understand the big picture. Owen is a wonderful Strive to embody this behavior now, and make it a institution, but you can make it even better by being a habit, because as a student you are already part of the good alumnus. Vanderbilt and Owen family

54 SUMMER 2002 OWEN@Va nderbilt 55 classACTS Chancellor Gordon Gee connected with more than 100 Vanderbilt alumni and friends, including these young alumni at a dinner,

during an alumni trip to the United Kingdom. PHOTOS BY JEN HOWE

Keep Up With Global Events— Be a part of Vanderbilt’s expanding international team!

Bill and Kelly Christie, center, met Vanderbilt is growing its international If you are interested in the University’s inter- with more than 45 alumni and friends network by national activities and initiatives planned of the University, several from Owen, at a reception during the recent alumni for your region of the world, contact the ● building stronger connections with Van- trip to Paris. derbilt’s international alumni, parents, Office of International Advancement and friends throughout the world Vanderbilt University ● identifying new opportunities for interna- 2014 Broadway, Suite 350 tional collaboration, learning, and sup- Nashville, TN 37203 port and Jennifer Howe, director ● strengthening the international reputa- 615.322.6200 tion of the institution. [email protected]

GOT CONNECTIVITY? BOARD OF DIRECTORS 2002-2003 E. Renee Franklin, ’89 Ed Adlam, E’00 Jack Driscoll, ’00 David Stringfield, ’95 (President) Spinnaker, LLC GE Financial The Staubach Company Ford Motor Co. Todd Barth, JD/MBA’88 Marc Fortune, ’76 Anne Taylor, E’84 Donald E. Townswick, ’92 Bowers Properties, Inc. Century II Staffing, Inc. Centennial Inc. If not, we need your email address today! Reconnect to the Owen School (Vice-President) Aeltus Investment Management Allen Brown, ’78 Robert E. Henry, E’95 Mark Tillinger, ’82 Metro Bank American Endoscopy Services, Accenture through your email address and watch your network expand. You’ll receive news Sara K. Gates, ’96 Inc. (Secretary) Norman A. Carl, E’83 Brenton R. Turner, ’99 Waveset Technologies Carl Realty Advisors Timothy W. Hough, ’95 Avenue A about Owen and updates on alumni activities in your city. Log onto the Owen Retek Dr. Ron Ford, E’92 Janet Carr, E’98 R. Keith Turnipseed, ’86 Website at mba.vanderbilt.edu and click on alumni directory to update your (Ex-Officio) RR Donnelley & Sons Ann Kloeppel, ’96 Chatham Partners Media Arts Group, Inc. Virginia Carter, ’02 Bruce J. Lynskey, ’85 J. Smoke Wallin, ’93 Jeffrey J. Kudlata, E’96 Owen Graduate School of eSkye Solutions, Inc. records. Include the essentials: job title, home and work addresses, email ad- Joe Chatman, ’01 Management (Alumni Connectivity Chair) FedEx Chris Ward, ’02 Verizon Communications Geoffrey P. Mavar, ’90 dress, and news you may want to share with classmates. Elizabeth Clarke, ’92 Leo Whitt, E’95 Steven Summers, ’99 Green Square Capital Manage- Business Development Solu- ment Jay Alix & Associates (Student Life Chair) tions Deloitte Consulting Heiki Miki, ’96 Bradford J. Williams, JD/MBA’94 Kemp Conrad, E’02 National Steel Corporation Goldman Sachs& Co. DON’T BE LEFT OUT OF THE LOOP! Kevin Crumbo, E’96 Accuship, Inc. (Development Co-Chair) Nedda Pollack, E’84 Kimberly G. Windrow, E’99 West Cook, E’01 AmSouth Bank The MONY Group Stephen S. Mathews, ’74 Cook & Company (Development Co-Chair) Steve Riddell, ’95 John Crowther, E’92 Gulfstream Asset Management Nancy Abbott, E’91 Diebold, Inc. GE Capital Craig Savage, ’98 Cotter Cunningham, ’91 Goldman Sachs & Co. F. Norfleet Abston, ’89 Bankrate, Inc. Old Waverly Investments LLC Jackie Shrago, ’75 OWEN ALUMNI Rush Dickson III, ’78 Think-Link-Learning Metro Marketing ASSOCIATION 56 SUMMER 2002 VANDERBILT UNIVERSITY Non-profit Org. U.S. Postage Owen Graduate School of Management VU Station B 357703 PAID 2301 Vanderbilt Place Nashville, TN Nashville, TN 37235-7703 Permit No. 1460

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A Publication of THE OWEN GRADUATE SCHOOL of MANAGEMENT

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For more information, contact Martin Rapisarda, associate dean for Executive Education, (615) 322-3120; [email protected]

Or visit the Website: http://mba.vanderbilt.edu/execprog/customized_programs.cfm