Fall/Winter 2015

KELLOGG SCHOOL OF MANAGEMENT AT NORTHWESTERN UNIVERSITY Kellogg School of Management Northwestern University 2001 Sheridan Road Evanston, IL 60208-2001 ALWNE 05KELLOGG SCHOOL OF MANAGEMENT AT NORTHWESTERN UNIVERSITY KELLOGG FALL/WINTER 2015 18 Jus t Win, Baby Inside Kellogg’s venture competition machine 27 Inside New York Bankers discuss investing in today’s market 46 Corporate Response Established companies respond to startups

Fall/Winter 2015 VOL. 23 ISSUE 1 | FOOTPRINT | TESLA MODEL S

Tesla’s latest version of the Model S covers 270 miles before it needs a charge. That’s the same mileage as a conventional car and double that of Tesla’s next competitor in the electric vehicle market. Add to that Tesla’s award-winning design, performance, growing network of charging stations and enhanced capabilities — most electric vehicles take an overnight charge; a Tesla recharges in 30 minutes — and you can see why Diarmuid O’Connell ’96 thinks every other electric car on the market looks like a toaster. As vice president of business development at Tesla Motors for nearly 10 years, O’Connell has pleaded — even taunted — the auto industry to make an electric car that rivals Tesla’s. What’s stopping them? An industry dominated by lowest-common-denominator ambitions, he suggests, leads to designing a fleet of cars that won’t attract shoppers. Maybe that’s why Tesla is giving away its formula for a great electric vehicle. It’s ditched the idea of intellectual property, made its patents public and won’t initiate patent lawsuits against anyone who uses its technology in good faith. The move is not to dominate the market, he said in a blog post, but to upend it, create a new status quo and “catalyze a mass market for electric vehicles, either with our own cars or by inspiring competition by other manufacturers.”

PHOTO BY ANTON WATTS / TESLA MOTORS

| IN THIS ISSUE |

TRANSFORMATIVE INNOVATION Innovation moves at a breakneck pace. Those who figure out what’s coming and quickly adapt could upend the market and disrupt an industry. The question is: How do you change the game?

COVER STORY 34 You Can Always Get What You Want New companies are changing who captures value and, in the process, remaking the old economy-of-scale approach

COVER ILLUSTRATION BY VASAVA

Editor’s Note: Yes, our cover design is a 3-D sculpture. Read the story to learn more about on-demand 3-D printing.

8 40 46

The Road to 2020 The Revolution Will Be Pulling a Corporate Counterpunch Kellogg continues to pioneer Programmable As startups push their way into the business education Connecting markets to networks marketplace, established companies can net huge profits seek new competitive responses

2 KELLOGG FALL/WINTER 2015 INSIDE: INVESTMENT BANKING NEW YORK BRAVE THINKERS

27 The New Normal 16 John Wood ’89 32 Jenny Lee ’01 Christina Minnis ’92 deals with new regulations 44 Charlie Baker ’86 54 Diana Nelson ’89 Playing the Market… For Real Students manage a $7M portfolio

Moving M&A out of NY Gary Parr ’80 focuses on oversea mergers

HEADLINES 6 Engaging the Alumni Shane O’Brien ’05 looks to strengthen Alumni Relations THE ASK 7 In Top Form 5 Are You Really Looking for the Best? Kellogg teams rack up more competition wins Faculty weigh in on bias in hiring practices KELLOGG INITIATIVES EXPERT OPINION 24 The Science of Social 24 Health Care Exchanges Likely to Expand Data cuts through human bias to reach Court decision could lead to broader use of conclusions exchanges MY IDEA 76 Electrifying Your Base Utility smart-data MeterGenius finds new ways to engage its customer base

57 ALUMNI WIRE

Dean Chief Communications Editor ©2015 Northwestern University. Sally Blount Officer Glenn Jeffers All rights reserved. Publications Amanda Samuels Agreement No. 40031786. Global Chief Marketing Managing Editor Postmaster: Send address Natalie Edwards and Engagement Officer Director, Content changes to: Northwestern Tim Simonds Strategy Kellogg Magazine University, 633 Clark Street, Mary-Jo Lipman Evanston, IL 60208-1114 Managing Director, Lead Designer Marketing Strategy & Creative Director Kay Meyer Kellogg (USPS 009-272) is Kellogg School of Management Design Northwestern University Lindsay Anderson published by Northwestern Claire Lundin Photo Editor 2001 Sheridan Road University/Kellogg School of Evanston, IL 60208-2001 Rebekah Raleigh Management, 633 Clark Street, Managing Director, Evanston, IL 60208-1114, and is P: 847.491.3300 Digital Marketing Web Manager issued twice during the year: [email protected] Margaret Douglas Andrew Walker Spring/Summer and Fall/Winter.

Fall/Winter 2015 VOLUME 23 ISSUE 1

KELLOGGMAGAZINE.COM 3 | GUEST COLUMN |

The New Innovation Landscape Innovation is more worthwhile when there are more potential customers. And innovation is easier when the barriers to entry fall. When markets scale up, or entry barriers go down, more companies and entrepreneurs ramp up their efforts to innovate. That’s exciting for consumers the world over. But the opportunity for businesses is also a risk. More innovation means more disruption, too. Businesses today are caught in important trends that are feeding the fires of corporate creativity and the creative destruction that ensues. And the prize for the innovator only seems to be going up. The world is full of “new” customers. In China, India and other emerging markets, rapidly expanding incomes are bringing billions of new customers into the global marketplace. Products like smartphones increasingly play in a global tournament where winners win big and incumbents can be quickly replaced. Separately, existing customers have been reassem- bled into larger, easier-to-reach groups, typically through Internet platforms. Whether e-commerce via Amazon, or mobile-assisted interactions via Uber, it is increasingly easy for buyers and sellers to find each through high-scale, virtual marketplaces. Formerly local or “niche” markets look increasingly big and appetizing. The unrelenting challenge for corporations is to innovate and stay ahead of the crowd. Innovation is key to winning market share and avoiding corporate destruction. Kellogg aims to help business leaders stay on the cutting edge by sharing our research on what it takes to ignite innovation, from courses in our Full-Time, Part-Time and Executive Education programs to our recent Forbes series (kell.gg/ForbesVoice) on how venture thinking can spark innovative products that create lasting value. Kellogg faculty and alumni share their efforts and insights in this issue, examining these new market developments and devising new ways for companies to respond and grow.

Benjamin F. Jones Gordon and Llura Gund Family Professor of Entrepreneurship Faculty Director, Kellogg Innovation and Entrepreneurship Initiative (KIEI)

4 KELLOGG FALL/WINTER 2015 | THE ASK |

ARE YOU REALLY LOOKING FOR THE BEST? Faculty weigh in on bias in hiring practices

LAUREN RIVERA NICHOLAS PEARCE

While diversity and inclusion initiatives have become a mainstay within many companies, the choice to hire one candidate over another still comes down to whom the hiring manager likes the most. Or rather, with whom they prefer to work. Lauren Rivera and Nicholas Pearce have made a career of researching that bias. An associate professor of management and organizations, Rivera focuses on hiring and social inequality. Pearce, a clinical assistant professor of management and organizations, works to get “to the bottom of a puzzle around what helps organizations grow,” he says.

Why do hiring managers skew toward hiring a particular type of applicant rather than hiring based on talent? Rivera: Hiring managers think they’re hiring based on talent, but when left to their own devices, tend to define talent in their own image. People are looking for employees who will succeed and thrive, but our views are skewed by cognitive biases and stereotypes that make it hard to see talent that’s different from our own. Pearce: People tend to esteem and prefer others who share social identities with them, like race, religion or gender. This can cause hiring managers to confuse how similar an individual is to them with how well an individual will perform. This is especially true in organizations that lack diversity in the management ranks, where it is easy to reach the false conclusion that the only people who have what it takes to succeed are the type of people who are already there.

How can job applicants combat hiring bias? R: It’s hard to prescribe one strategy that works all the time because you may not know who is interviewing or evaluating your résumé. Do due diligence before the interview and find out something about your interviewer and draw upon commonalities you share. If you know about your interviewer, you can highlight things that resonate with them. Hiring bias can be difficult to spot by the jobseeker, but being aware of ste- LAUREN RIVERA P: NICHOLAS PEARCE ASSOCIATE PROFESSOR OF reotypes that are likely against you when you submit your résumé or walk in the CLINICAL ASSISTANT PROFESSOR OF MANAGEMENT AND ORGANIZATIONS door can be an important first step. I would suggest trying to establish common MANAGEMENT AND ORGANIZATIONS ground early in the conversation by exploring shared values, interests or experi- Before Kellogg: PhD in Sociology ences that can serve as social glue to signal your trustworthiness and potential Before Kellogg: Leadership Fellow at Harvard University for success in the organization. and Program Coordinator, Center for Leadership, Northwestern University Is there a benefit for managers to hire dissimilar applicants?

WILL BIAS ALWAYS EXIST R: A lot of major law firms only hire people from the top 10 or 20 law schools with WILL BIAS ALWAYS EXIST IN HIRING PRACTICES? the idea that if a candidate didn’t go to those schools, they won’t be able to cut IN HIRING PRACTICES? “Bias will always be there it. But there’s evidence to suggest that graduates from most elite law schools are “As long as human beings because it is part of our more dissatisfied on the job and want to leave very early on. So sometimes our are involved in the lay theories on what makes a good hire are just theories. psychology. But you can decision-making process, put in place structures P: Potentially. Diversity of functional expertise confers clear benefits when it there will be bias. But as and practices that make it comes to performing complex tasks, but many organizations struggle with leaders develop cross- less likely that people will whether the benefits of social diversity are worth the pain. Diverse hires often pro- cultural competence, they vide fresh perspectives, which can facilitate sharper decision-making and more act on them, and that’s can become more proficient innovative problem-solving, sometimes at the expense of comfort and social the key. at interrupting their own ” cohesion. At the same time, hiring diverse talent without ensuring that there is bias before it manifests in an organizational ecosystem to support their success can be counterproductive. discriminatory behavior.” Interviews condensed and edited for clarity.

BY DUSTIN J. SEIBERT ILLUSTRATION BY NICOLE LEGAULT

KELLOGGMAGAZINE.COM 5 | HEADLINES |

ENGAGING THE ALUMNI SHANE O’BRIEN ’05 LOOKS TO STRENGTHEN ALUMNI RELATIONS AS ITS NEW SENIOR DIRECTOR

For many schools, alumni engagement is relegated to quarterly others, it is having access to Kellogg faculty research and updates and reminders to register for Reunion. But at Kellogg, the latest thought leadership. We need to find ways for the alumni are key to Kellogg’s progress, from being the engine these varied engagement definitions to happen efficiently of the school’s recruiting and top-of-class job-placement efforts and routinely. to providing key financial support. Shane O’Brien should know. As both an alumnus and K: Why is alumni engagement so important to Kellogg’s Kellogg’s former senior director of financial planning and anal- present and future? ysis, O’Brien oversaw the financial aspects of Kellogg’s strategic SO: Alumni are involved in almost every aspect of the Kellogg plan — the new building in particular. He plans to use this total model. Their active, collaborative participation is critical Kellogg strategic perspective to shape alumni engagement. to Kellogg’s achieving its short- and long-term goals. As an O’Brien spoke with Kellogg about his new role and his plans alumnus, I want the community that I worked to join and to bolster the school’s alumni network. of which I am proud to be a member to thrive. It is that sense of commitment to the community that makes the K: How are you adjusting to the new role? Kellogg model work. SO: With a grossly overdue wardrobe update. Surprisingly, Alumni Relations involves a wider spectrum of events K: What’s next for Alumni Relations? than Finance. SO: Working with our partners across Kellogg and in the alumni community to focus our efforts. The possibilities K: What’s been your main focus since joining the Alumni for projects are numerous, so we have some work to do Relations team? to pick where and when we play. If we succeed, our direct SO: Listening. Not just to alumni, but to the faculty, students involvement in the varied forms of engagement should and long list of Kellogg departments who partner with move to the background as they start to happen naturally alumni to achieve their objectives. While I have a strong and regularly across the community. The more people we team, we will need the help of that entire community to have helping out others across the community, the stron- achieve our goals. Along the way, I have collected a long ger the Kellogg model. and varied list of definitions for the wordengagement . For some, it is connecting regularly with classmates. For Visit kelloggmagazine.com for an extended version of our interview with Shane O’Brien. PHOTO ©JEFF SCIORTINO PHOTO

6 KELLOGG FALL/WINTER 2015 Kellogg ended the 2014–15 academic year IN TOP FORM with major wins in several entrepreneurial KELLOGG TEAMS RACK UP MORE COMPETITION WINS and finance competitions № NORTHWESTERN UNIVERSITY IVEY BUSINESS SCHOOL’S 1 VENTURE CHALLENGE BEN GRAHAM CENTRE INTERNATIONAL STOCK Kellogg students won nearly $100,000 at the June competition. The challenge celebrated the PICKING COMPETITION most innovative and promising student startups by providing capital and mentorship to winners in five categories. These startups won in their respective categories as well as placing first, second Will Manderscheid, Alex and third overall: Acosta and Anish Pasari (all ’15) took the top prize of $10,000 at the April Opticent Health competition, where stu- $45,000 for first place in the Life Sciences and Medical track and first overall dents had to evaluate different stock options and Kieren Patel and Shane Parkhill, both ’16, won for their noninvasive imaging technology that convince a panel of inves- creates 3-D eye models that are used to create eye-monitoring devices. tors to either buy or not buy the stock, using the most compelling invest- GTrans ment thesis. $30,000 for first place in the Green Energy and Sustainability track and second place overall Durgendra Singh ’16 and McCormick School of Engineering graduate students Zhiyuan Sun and Joseph Arnold won for GTrans, a thermally responsive polymer clay separator that will WAKE FOREST increase the safety of Li-ion batteries. UNIVERSITY SCHOOL OF BUSINESS MDAR Technologies MARKETING ANALYTICS $25,000 for first place in the Business Products track and third prize overall SUMMIT Jesse Chang and Chris Gezon (both ’16), McCormick School of Engineering graduate student A five-person team took first Nathan Matsuda, and Marc Gyongyosi (WCAS17) developed a 3-D scanning method that place and $20,000 at the enables autonomous vehicles to see faster and more accurately in inclement weather. April competition, in which teams had to create a strategy that would increase in-store mobile use through habitu- ation, value to the customer and utility to the retailer. For the second straight year, a Kellogg team One-Year graduates Best impact won Best Impact Investment at the April com- Adam Hirschkatz, Marissa petition, in which students analyze real-world McGann, Nick McGann, investment startups that make a big impact on society and Yajur Kapoor and Alex show great investment potential. Bourdeau (all ’15) developed a four-part strategy that called UNIVERSITY OF PENNSYLVANIA Alexandra Korijn ’15, Ashley Luse ’15, WHARTON SCHOOL for in-store mobile marketing, Blair Pircon ’16, Duda Cardoso ’16, Jamie a mobile app for promotions, a MIINT COMPETITION Lu ’16 and Rebecca Sholiton ’16 presented personalized loyalty program Infiniteach, an autism education digital plat- for customers and an analyt- form. The win qualifies Infiniteach for a ics engine for insight into cus- $50,000 investment. tomer behavior.

KELLOGGMAGAZINE.COM 7 THE ROAD TO 2020

FIVE YEARS INTO ITS TRANSFORMATION, KELLOGG HAS PROVED ONCE AGAIN THAT IT IS A PIONEER AMONG BUSINESS SCHOOLS.

8 KELLOGG FALL/WINTER 2015 KELLOGG HAS LONG BEEN A PIONEER OF BUSINESS EDUCATION. Its breakthrough research in marketing, game theory and negotiations; its teamwork approach to teaching; and its innovative degree portfolio have distinguished the school for decades. But as the business landscape changed — and as competition grew more intense — Kellogg saw that it needed to innovate once again.

Over the last five years, the school has done more than innovate — it has committed itself to transformation. Kellogg has embarked on a plan to invest in its faculty, expand and enrich its curriculum, strengthen its global presence and deepen its commitment to its unique brand and culture. “Our goal in undertaking this work was to cement Kellogg’s legacy for the next generation and ensure our place on the 2020 global short list of premier business schools,” says Dean Blount. “The transformation has been incredibly fast,” says Tim Simonds, chief marketing and engagement officer. “You don’t often see this pace of change in higher education — or even in most corporations.” And the effort is already paying off. Faculty research is robust, the quality of students continues to rise and the school’s global presence is stronger than ever. “In every major area the metrics are pointing in the right direction,” says Simonds. Photo © Justin Runquist © Justin Photo

KELLOGGMAGAZINE.COM 9 Listening to the Market DEAN BLOUNT REFLECTS

Kellogg’s transformation began with a six-month listening tour that included conversations with thousands of alumni, faculty, students and business leaders in cities around the world. This dialogue and the insights gained were foundational to developing Kellogg’s 7-Year Plan for Transformation. Dean Blount reflects on Kellogg’s progress.

How would you characterize Kellogg’s progress against and jump-starting a new level of innovation in our courses. the 7-Year Plan (2011-2017)? For example, through our Markets and Customers initiative and with input from employers, we totally revamped We’re in the middle of year 6, and I’m awed to report and expanded our data analytics curriculum, which is now that the Kellogg team — faculty, staff and students — has industry-leading. already achieved every change management goal that we set. All that is left is the new building. And we have done this not just by charging ahead, but throughout the pro- What has been the biggest learning? cess we have taken time to reflect on our performance If making change happen is hard, making change stick to determine if adjustments were needed along the way. is even harder. It takes persistence to develop the right One great example was rethinking how we recruit performance goals and metrics across our diverse teams. women to our full-time program. We hadn’t made I’ve never been part of a management team that took the progress we wanted, so a year ago we stopped to metrics, beyond financial measures, as seriously as we restrategize. It seemed to us that we should be leading are now taking them at Kellogg. This performance focus the field. Our revised strategy emphasizes Kellogg’s value has accelerated our trajectory in admissions, career proposition for women, highlighting how Kellogg provides management, Executive MBA, facilities — you name it. We the knowledge, skills and network women need to reach will continue to drive that discipline as we complete the their fullest potential. We partnered with the Women’s 7-Year Plan and embed these changes into our culture. Business Association to create a variety of meaningful touch points with prospective students, ranging from What are your priorities going forward? Women’s Preview Day, which includes sample classes and student panels, to alumnae dinners that connect students Fundraising and faculty development win — hands down! with senior women business leaders. Fundraising is moving along nicely and has its own momentum, but it will still take time. My major focus will What has impressed you the most in the last 5 years? be on working with my colleagues to design and launch an ambitious faculty development plan — one that re- If I had to pick three, I’d say: the four caliber of people envisions what our faculty will look like in 2020, 2025 and we’ve recruited to Kellogg as faculty, administrators 2030. That is, how do we best find and enact a new intel- and students; the ambitious design of the new building, lectual vision for this century — what new ideas and areas which will transform how we teach, learn and engage of study should we begin to invest in and what should with each other; and the incredible response to our we begin to back off from? The world has changed fundraising outreach, not just for the building, but also for profoundly since 2000 — economically, politically and scholarships and wonderful new programs, like the Zell socially. How we organize and invest as intellectual lead- Scholars. The generosity of Kellogg’s alumni and friends ers needs to be deeply studied. has wildly exceeded my expectations.

What excites you most about the future? How has Kellogg continued to be a pioneer in management education? The new building is on the top of my list, because it is finally becoming tangible. I’m also very excited about the While all the changes matter, launching the strategic initia- work we’re doing with Northwestern University. I am the tives, which create a cross-disciplinary matrix with our six co-chair of the Global Strategy Task Force for the univer- academic departments, has been a truly defining endeavor. sity, where we are rethinking Northwestern’s global con- The strategic initiatives have broken down disciplinary nections and impact. It’s an honor to be leading this effort silos — fostering new dialogues, connections and thinking and critical to the future of both Kellogg and NU.

SALLY BLOUNT ’92 RETURNS KELLOGG UNVEILS NEW SERIES OF C-LEVEL PROGRAMMING DEBUTS STRATEGIC INITIATIVES TO KELLOGG AS DEAN 7-YEAR PLAN WITH MARKETING LEADERSHIP SUMMIT LAUNCH

2010 2011 2012 MBA Program — first introduced in the 1960s — has expanded Innovating TO by 20 percent in just the last five years. Its three-year JD-MBA remains extremely popular. And its pioneering MMM Program now offers a dual degree in business and design innovation. MEET DEMAND Kellogg has also launched a new MS in Management Studies program, which is designed to equip recent college grad- A key part of Kellogg’s transformation has been to once again uates — especially liberal arts and science majors — with spe- innovate and enhance its portfolio of degree programs. cialized management and business skills in less than one year. “All along, the focus has been on bringing the best and Ziegler says the demand for business education (up 50 brightest to Kellogg and connecting them to the right programs,” percent over the past 10 years) and the spread of online degree says Betsy Ziegler, who was recently appointed Kellogg’s chief programs has pushed Kellogg to experiment more with blended innovation officer after four years as associate dean overseeing learning formats and to share exciting course material through MBA operations. “And we do that by listening to the market. We massive open online courses. have always believed that business education is not one size fits “For us, it’s not about online degrees,” she says. “It’s not all.” about headcount or margin. It’s about using technology to further To better address market demand, Kellogg has built on its enhance face-to-face learning. After all, we built our reputation strong foundation of flexible degree offerings. The One-Year by enriching the student experience.”

2017 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8

Organizational restructuring

Brand repositioning New repositioning

New building design Construction

Capital campaign quiet phase Capital campaign public phase

Stragetic planning Five-year strategic plan: Envision Kellogg

7-YEAR PLAN FOR TRANSFORMATION

2017 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8

Organizational restructuring

Brand repositioning New repositioning

New building design Construction

Capital campaign quiet phase Capital campaign public phase

Strategic planning Five-year strategic plan: Envision Kellogg

FIRST KELLOGG BRAVE LEADER SERIES CONVENES KELLOGG KICKS OFF PUBLIC PHASE OF $350M CAPITAL WITH IRENE ROSENFELD, CEO OF MONDELĒZ CAMPAIGN AND BREAKS GROUND ON GLOBAL HUB

2013 having this second dimension allows us to talk about business ADDING A second challenges in ways that resonate more with practitioners. And it helps to make things happen across departments.” DIMENSION The strategic initiatives have been a platform for thought leadership on a range of issues facing practitioners — from data analytics to growth and scaling — as well as cutting-edge While enhancing our degree portfolio, Kellogg has also taken research on topics such as engendering trust in organizations a new, distinctive approach to thought leadership, faculty and markets, and human-machine partnerships. In the same research and curriculum development. spirit, Hubbard encourages faculty to share more of their exper- “We are, and always have been, a general management tise with the broader Kellogg community and beyond. “I often school with a strong focus on the customer,” says Thomas tell my colleagues, ‘What you publish as research is only a small Hubbard, the Elinor and H. Wendell Hobbs Professor of fraction of what you know, and people value what you know.’” Management and former senior associate dean in charge strate- The cross-disciplinary approach is also emphasized in the gic initiatives. “But we needed to do a better job of conveying that new curriculum. Within three years, Kellogg launched more and showing how this produces students who can ascend quickly than 55 new courses — including three on data analytics, 16 on into leadership positions within their organizations.” entrepreneurship and seven on growth and scaling. It also put Kellogg’s response was to create four new initiatives — more emphasis on faculty immersion trips, where Kellogg pro- Markets and Customers, Innovation and Entrepreneurship, fessors visit leading companies to address emerging issues (how Architectures of Collaboration and Public-Private Interface — Facebook manages analytics; how Kaiser Permanente builds its that cut across academic departments and offer a platform for culture into its operations) and incorporate their findings into addressing emerging business problems in novel ways. their courses and research. “Part of the innovation was enabling “What the initiatives did was augment all of the great things faculty and practitioners to learn more from each other,” we were already doing,” Hubbard says. “The purpose was not to Hubbard says. supplant the disciplines, which are absolutely necessary. But

Dimitris Papanikolaou Adam Waytz Eric T. Anderson Associate Professor of Finance Associate Professor of Professor of Marketing Management and Organizations Two-time winner of the Amundi Smith Received the 2014 Paul E. Green Award Breeden Award for best paper in the Received the 2015 Early Career Award from the Journal of Marketing Research top-ranked Journal of Finance. Conducts from the International Social Cognition for his study of online product reviews, cutting-edge research on surprising Network for his research on the role which found that a company’s most loyal investment behaviors — for example, what corporate culture plays in condoning customers will sometimes write negative makes people choose to invest in “growth unethical behavior, and how leaders reviews of products they have never firms” like Uber or Facebook over “value can learn to foster trust within their purchased. firms” like General Electric. organizations.

REVAMPED MMM PROGRAM FOCUSES ON CORE ENROLLMENT OPENS IN MS IN EXECUTIVE MBA GLOBAL NETWORK EXPANDS TO BUSINESS SKILLS AND DESIGN INNOVATION MANAGEMENT STUDIES PROGRAM INCLUDE GUANGHUA SCHOOL OF MANAGEMENT

2014 CROSS-DISCIPLINARY ACCOUNTING THOUGHT LEADERSHIP FINANCE

MANAGEMENT

MANAGERIAL ECONOMICS

MARKETING MARKETS AND CUSTOMERS PUBLIC-PRIVATE INTERFACE

STRATEGY ARCHITECTURES OF COLLABORATION INNOVATION AND ENTREPRENEURSHIP

Architectures of Innovation and Markets and Customers Public-Private Interface Collaboration Initiative Entrepreneurship Initiative Initiative Initiative Technological change and All businesses must Anticipating and meeting Business leaders must globalization enable people continually find new ways to customers’ needs is essential increasingly balance their and resources to be organized create value. You will learn in today’s economy. You will traditional role as manager in new ways across time and how business leaders — learn how business leaders with the emerging role of space. You will learn how whether at startups, middle- create and reinvent markets public advocate. You will learn business leaders effectively market companies or large through greater customer how leaders capitalize on new manage within and across corporations — discover new insight and focus. opportunities and navigate organizations. ideas and turn them into among increasingly complex valuable goods and services. and powerful public stakeholders.

premier Executive MBA Global Network, the largest and most Strengthening immersive of its kind. “We recognized it would be more valuable — to our students and the school — to integrate our partner schools and create more opportunities for students to learn GLOBAL PRESENCE across geographic boundaries,” says Christensen. Kellogg also expanded the network to mainland China, adding the Guanghua Another key goal of the 7-Year Plan was to strengthen Kellogg’s School of Management — one of China’s premier business presence and reputation around the world. The effort began in schools, located in Beijing at the prestigious Peking University. 2010 with an audit of all things international. “As a pioneer in Equally important has been bringing a deeper global the global expansion of management education, we already had perspective into the MBA curriculum. Kellogg has done this a solid foundation,” says Paul Christensen, a professor of finance by introducing a number of experiential learning courses. and senior advisor for global strategy. Yet Kellogg did not receive International Growth Lab, for example, is designed to combine the same recognition as other top schools. classroom learning with real-world problem-solving. “We’re To address this, Kellogg has taken a number of steps in the giving our students the opportunity to work with students from past five years. First, it strengthened and deepened the connec- other leading business schools on client projects across time tivity of its partner Executive MBA programs in Hong Kong, zones and cultures, which is crucial in preparing for a global Tel Aviv, Germany and Toronto into what is now an integrated, career,” Christensen says.

“INSPIRING GROWTH” BRAND PRESIDENT BARACK OBAMA SPEAKS ANNUAL FUND SETS RECORD FOR FOURTH STRATEGY LAUNCHES TO KELLOGG STUDENTS STRAIGHT YEAR WITH $6M IN GIFTS

2015 The community will come together in an unprecedented STAYING true TO THE way for the first-ever Kellogg on Growth Forum in November 2015. The one-day event will take place at various locations KELLOGG CULTURE across the Evanston campus, bringing together more than 1,000 students, faculty and alumni to connect and share ideas about the most important growth challenges facing people, organiza- When an organization undergoes change, there is always the tions and markets. danger of losing one’s culture. But Kellogg’s culture has actually Kellogg also has been deepening its commitment to diversity. been a central part of its transformation. Far from abandoning “Teamwork is central to how we teach and operate. We know that its core values, the 7-Year Plan has actually served to reinforce diverse teams produce better results. We’re proud of the diversity those values. “Students choose Kellogg for its culture,” Tim within Kellogg. Just one example is having 43 percent women in Simonds says, “and employers choose Kellogg because of the the Class of 2017, an all-time high,” Simonds says. kinds of students who emerge from that culture.” Kellogg’s 7-Year Plan is a major investment in just about For decades, the school has prided itself on the quality of every aspect of the school, from faculty research to new programs its graduates — not just their ambition or their business acu- to global partnerships. But it is also an investment in the larger men but also their ability to collaborate, support each other community. “One thing that is abundantly clear is that Kellogg and make a difference. “Kellogg has long prepared high-impact, and the Kellogg community are deeply integrated,” Hubbard says. low-ego leaders who have a positive impact on the world,” says “To pull this off, you need to have more than just ambition — you Dean Blount. “Over the past five years, it’s been my privilege to need a culture of mutual support.” experience this firsthand as I meet with our students and alumni around the world.”

$98M FEELING THE impact $98M REMAINING REMAINING The community is already feeling the impact of Kellogg’s new trajectory. The

faculty continues to receive accolades for its cutting-edge research, students are CAMPAIGN GOAL taking advantage of an enriched and expanded curriculum and alumni are giving CAMPAIGN GOAL at unprecedented levels. $350M The school’s global reputation is clearly on the rise. $350M Kellogg is at the forefront of industry dialogue. Jan Eberly, professor of finance and former chief economist for the U.S. Treasury, was named co-editor of the Brooking Institution’s leading economic policy journal; Betsy Ziegler recently spoke on the future of business education to a forum of 600 business school leaders; and Dean Blount visited the White House to discuss diversity and CAMPAIGN SUPPORT women in business. Kellogg launched its largest- “We’ve made tremendous progress, and we’re proud of what we’ve achieved ever capital campaign in 2012 so far,” says Dean Blount. to support its transformation. “But we aren’t satisfied stopping here. We will continue By the end of FY 2015, alumni and friends of Kellogg have to work together as we move ahead to 2020 and beyond.” raised more than $250 million.

AMERICAN ACADEMY OF ARTS AND SCIENCES ELECTS CAMPAIGN REACHES ONE-YEAR PROGRAM MARKS 50TH TIM FEDDERSEN, WHO JOINS THE RANKS OF JAN EBERLY, $250M MARK ANNIVERSARY, WELCOMES LARGEST CLASS EHUD KALAI AND DAVID AUSTEN-SMITH KELLOGG’S NEW BUILDING REACHES FINAL HEIGHT ON TRACK FOR OCCUPANCY IN 2017

Perhaps the most visible sign of Kellogg’s progress is the Global Hub. When it opens in 2017, it promises to foster new forms of learning, idea generation and collaboration for its future inhabitants, who will include Kellogg faculty, staff and students along with the Weinberg College Department of Economics.

Designed by award-winning Toronto firm KPMB Architects, the building will feature flexible and adaptive classrooms that can be reconfigured to optimize learning, as well as open and inviting communal spaces that will enable dialogue, collaborative work, spontaneous idea sharing and inspired problem-solving.

Thanks to an eco-friendly design that will reduce energy consumption to at least 30 percent below local code requirements, the hub will be one of the greenest learning environments among MBA schools. Currently, the building is tracking solidly for LEED Gold certification.

With the building reaching its final height in the fall of 2015 and work progressing on the Concrete poured on exterior, construction moves into the interior, focusing on several spaces: the 34-foot-wide stairs leading from the three- + The Collaboration Plaza: A three-story, 6,000-square-foot atrium that will welcome story atrium into the building’s garden level. visitors to Kellogg while drawing students, faculty and visiting leaders together. Reminiscent of Rome’s + The White Family Auditorium: A two-story, 6,600-square-foot, 350-seat space that Spanish Steps, these steps will be a gathering will become Chicago’s and Northwestern University’s signature convening space, space, bringing people capable of hosting dinners for 250 or lectures for 350. from all levels of the + The Faculty Summit: A 9,000-square-foot, two-story piazza that forms the intellec- global hub into the heart of the building. tual soul of Kellogg’s global hub, where faculty will converge to discuss, debate and find solutions to the most pressing economic, business and social issues of the day.

Construction should be completed over the next year, with mechanical, electrical and plumbing systems, partitions, floors and other final touches concluded by late 2016.

Learn more about Kellogg’s global hub: transformingkellogg.com

DEAN BLOUNT VISITS WHITE HOUSE TO GLOBAL HUB REACHES DISCUSS WOMEN IN BUSINESS ITS FINAL HEIGHT

2016 “Learning to read can be a lucky break for millions of children, and eventually millions of families.”

16 KELLOGG FALL/WINTER 2015 | BRAVE THINKERS |

The bibliophile WITH A DATA-DRIVEN FOCUS, JOHN WOOD BRINGS LITERACY TO SOME OF THE WORLD’S MOST IMPOVERISHED REGIONS

ixteen years after leaving a successful career at Microsoft to After founding Room to Read in 2000, Wood, who is based S promote literacy in overlooked corners of the globe, John in Hong Kong, set out to persuade benefactors — mainly busi- Wood ’89 revels in the statistics. ness executives and companies — to donate $325 million in cap- By year’s end, a full five years ahead of schedule, Wood’s ital to Room to Read by demonstrating that it’s an efficiently run Room to Read nonprofit will have benefited 10 million children model for social change. across 17,000 communities in Asia and Africa by focusing on lit- The nonprofit is fastidiously data-driven. Research tracks eracy and gender equality in education. everything from average words read per minute and library It was while vacationing in Nepal in 1999 and seeing unre- access time to graduation rates and community co-investment mitting poverty that Wood’s life took on its dramatic new locus. in school construction projects. Literacy, he says, is the baseline on which to build an education “A lot of our leadership team is what I refer to as corporate and create economic prosperity. refugees,” Wood says. “They’ve done their education, they’ve “Two out of seven people live on $2 a day or less,” says cut their teeth at companies ranging from Goldman Sachs to Wood, who wrote about his road to social entrepreneurship Unilever and, as a result, so many of us have grown up in envi- in a pair of books: Leaving Microsoft to Change the World and ronments where, to use one of (former Microsoft CEO) Steve Creating Room to Read: A Story of Hope in the Battle for Global Ballmer’s expressions, what gets measured gets done. Otherwise, Literacy. you just don’t know if you’re doing any good for the world.” “So much of this goes back to the lottery of life, that where Data further show the challenge at hand: around the world, you are born and to whom you were born are completely ran- 773 million people cannot read or write. dom events that you have no control over,” he adds. “If you were “We can beam the Internet to remote parts of Africa from born in Evanston, Connecticut, the U.K. or Switzerland, you’re satellites, but if people don’t have the ability to read or write, amongst the luckiest people on earth because you’re guaranteed then what good is it going to do?” Wood says. “Learning to read an education.” can be a lucky break for millions of children, and eventually millions of families.” k

BY ANDREW FAUGHT PHOTO BY VIRGILE BERTRAND

KELLOGGMAGAZINE.COM 17 | KELLOGG INITIATIVES: Innovation and Entrepreneurship |

BUILDING A WINNING PROGRAM RESOURCES, MENTORING AND CLASSES MAKE A WINNING FORMULA FOR KELLOGG’S NEW VENTURE COMPETITION TEAMS

“Each of the winners from Before Tyler Wanke ’15 was part of a medical device startup previous years has come back that won $200,000 in 11 business plan competitions, he was to coach the next group. another MBA student in a New Venture Development class ” learning the art of the pitch. LINDA DARRAGH “Every two weeks you’d go there and pitch your business and Clinical Professor of Entrepreneurial Practice you’d practice,” says Wanke, who graduated this spring from the Executive Director, Kellogg Innovation and MMM Program. “By the time we went to our first pitch compe- Entrepreneurship Initiative tition, we were relatively prepared and we got better every time.” Wanke is CEO of Innoblative, makers of a disposable radiofrequency ablation probe for treating surgical cavities like those remaining after excising breast tumors. Usually patients receive weeks-long radiation therapy after such a sur- If startups need work on pitching, they see David gery to ensure residual cancerous tissue is eliminated; with Schonthal ’09, a clinical assistant professor of innovation and Innoblative’s probe, radiofrequency energy kills potentially entrepreneurship. If startups need to understand trademark law cancerous cells in minutes. or incorporate their businesses, they see Esther Barron, direc- Northwestern Memorial Hospital surgeons originated the tor of the Entrepreneurship Law Center at Northwestern Law. idea, but Wanke came on in 2013 to assemble an eight-person Funding, like the $100,000 for business services available team that includes students from Northwestern’s engineering, to Zell Scholar recipients, is provided for startups, as KIEI medical, business and law schools. Since then, Innoblative has Executive Director Linda Darragh points out. And case compe- won or placed highly in notable case competitions. In 2014, it tition winners from previous years typically return to Kellogg to took fourth at the Rice Business Plan Competition, the world’s mentor student startups, exemplifying Kellogg’s distinct driven largest business plan contest, and first at the University of Texas and supportive culture. Darragh calls it the “historical compen- at Austin’s Global Venture Labs Investment Competition. dium of knowledge” that KIEI has put together. Because of that Innoblative isn’t the only Northwestern University startup support, students aren’t surprised going into pitch competitions. to have succeeded in business competitions. Indeed, since 2012, “Each of the winners from previous years has come back to the school has been represented by four different startups at the coach the next group,” Darragh says. “They’ve shown their pitch Rice competition. decks and have talked about how the judges ask questions and What’s the recipe for Northwestern’s success? A combi- things to be on guard for.” nation of financial support, staff resources and new classes — For Innoblative, that support made the difference. Wanke like New Venture Development, a course offered as part of the says the Chicago-based med-tech startup has already raised Kellogg Innovation and Entrepreneurship Initiative (KIEI) — more than $1 million and is eyeing 2016 for a clinical trial of its has proved pivotal for Northwestern students. device. Many aspiring entrepreneurs have used those resources to He adds: “I think Kellogg has the best entrepreneurship develop prototypes, file trademarks, find mentors and stream- program out there because the curriculum actually lets you line their pitch decks prior to arriving at their first business plan work on your company with faculty for credit and build your competition. company while in school.” k

BY ANDREW ZALESKI

18 KELLOGG FALL/WINTER 2015 This past school year, student teams from Kellogg took first place in 11 competitions, thanks in part to the various 11 1ST PLACE AWARDS services and resources available to them.

HERE’S A QUICK OVERVIEW OF WHAT KELLOGG OFFERS ITS FUTURE ENTREPRENEURS: 3 2ND PLACE AWARDS

COURSES OUT OF Core entrepreneurship classes in the “Discover. Test. Launch.” track such as New Venture Discovery give students a chance to build, refine 19 COMPETITIONS and pitch business ideas. IN 2014–15 ACADEMIC YEAR

MENTORSHIP Faculty, alumni and VCs mentor students on the challenges of entrepreneurship.

PITCH REVIEW Student teams get feedback on their business pitches from faculty, alumni and past competition winners. FACULTY EXPERT

PITCH AND BUSINESS SERVICES SUPPORT KIEI provides business support such as legal counsel, graphic design and travel support to competing student teams.

LINDA DARRAGH

areas of expertise: INTERNAL COMPETITIONS Early-stage financing and teaching, Kellogg hosts internal competitions based on regional and national enhancing entrepreneurship competitions that provide feedback from faculty, alumni and VCs. § Current research efforts focus on Winners receive travel support toward regional and national contests. early-stage financing in the realm of for-profit social ventures and impact investing. § Co-founded Impact Engine, an SCHOLAR PROGRAMS accelerator for for-profit social Programs like the Zell and Youn Impact scholars provide select entrepreneurship ventures. Serves as board member students with additional business support, faculty and alumni review of of 1871, a nonprofit incubator for business plan pitches, and a high-level mentorship to qualifying students. tech startups.

KELLOGGMAGAZINE.COM 19 | KELLOGG INITIATIVES: Public-Private Interface |

Since returning to Kellogg from a stint as a top U.S. Treasury Department official, Janice Eberly has been adamant: Companies need to have a more constructive role when it comes to public policy. “In public policy and on public issues, more often than not businesses wait for an issue to come up and then respond,” says ENGAGING Eberly, the James R. and Helen D. Russell Professor of Finance and faculty director of Kellogg’s Public-Private Initiative (KPPI). PUBLIC POLICY The solution is what she calls “engage policy,” in which JANICE EBERLY, FORMER CHIEF companies identify a policy interest and develop ways to contribute that not only align with their business but also contrib- ECONOMIST FOR THE U.S. TREASURY, ute substantially to shaping policy outcomes. SAYS COMPANIES SHOULD SEEK OUT Eberly, who served as the U.S. Treasury Department’s POLICY INTERESTS AND CONTRIBUTE assistant secretary for economic policy from 2011 to 2013, says

BY CHUCK MCCUTCHEON ILLUSTRATION BY MUTI/FOLIOART

20 KELLOGG FALL/WINTER 2015 companies need to determine which issue matters most to them, for businesses in those states is that you have a much more direct then assess if they have the knowledge to engage on it: “If you connection to state and local business leaders,” Eberly says. have particular resources, or tactics expertise, or have data that This can be an easy opportunity to scale for some com- makes you a leader on the issue, you then look for the alignment panies, she says. In 2008, tax-preparation giant H&R Block to support the public good.” launched a project in Ohio and North Carolina. The program She cited an example of that approach in action in 2013, provided free help to low- and moderate-income families in when Facebook founder Mark Zuckerberg and other Silicon filling out and filing application forms for college financial aid. Valley technology leaders took an avid interest in immigra- Then everyone watched as college enrollment rates rose 30 per- tion reform. They launched FWD.us, an advocacy group that cent among high school seniors and 20 percent among young ran television advertisements and sought to raise awareness in adults already out of school who participated in the program. other ways about the issue. Their interest — and expertise — “What does H&R Block have that helps with financial aid? stemmed from the continued need to ensure that foreign high- The information,” she says. “They have almost all the informa- tech workers receive visas, and Zuckerberg’s stature gave them tion that you need to fill out the federal financial aid form. It’s in obvious credibility. their wheelhouse.” Another example came when the U.S. Chamber of Eberly believes it’s important for companies to make cus- Commerce decided to engage on transportation. It helped tomers aware of what they are doing. While recently flying back launch Americans for Transportation Mobility Coalition — from New Zealand on United Airlines, she watched a video on business, labor and transportation groups making the case that the plane showing how the airline had delivered mail and food deteriorating roads and bridges are detrimental to businesses, across the islands of Micronesia. as well as to growth in the U.S. economy. “They were telling me that they were part of the commu- That argument has resonated with many state governments, nity and deeply connected to it — and that mattered to their cus- even as Congress has been at odds over the issue. “The opportunity tomers,” she says. k FACULTY EXPERT

JANICE C. EBERLY

areas of expertise: Corporate capital structure, macroeconomics, monetary policy, real options (investments) § Senior fellow at the Brookings Institution and co-editor of their flag- ship journal, the Brookings Papers on Economic Activity. § Assistant Secretary for Economic Policy at the U.S. Treasury (2011–2013), Chief Economist at the Treasury, leading the Office of Economic Policy in analysis of the U.S. and global economies and financial markets.

KELLOGGMAGAZINE.COM 21 | KELLOGG INITIATIVES: Markets and Customers |

CULTURE SHOCK IT MAY BE JARRING, BUT CHANGING COMPANY CULTURE IS KEY TO A SUCCESSFUL TURNAROUND, SAYS GREGORY CARPENTER

BY PETER JURMU ILLUSTRATION BY MICHAEL MORGENSTERN

22 KELLOGG FALL/WINTER 2015 FACULTY EXPERT

GREGORY CARPENTER

areas of expertise: Brand management, consumer products and behavior, marketing management, strategy, planning and policy § Current research focuses on understanding how firms create competitive advantage through marketing strategy, how firms become more customer focused, regain advantage “The problem is that on a personal and renew success. level, abandoning values is no longer § Director of the Center for Market accurate… it’s very understandably a Leadership, corporate advisor and frightening realization. co-author of Resurgence: The ” reinvent, formalize and maintain. Four Stages of Market-Focused GREGORY CARPENTER With each step, the organiza- Reinvention. James Farley/Booz Allen Hamilton Professor of Marketing tion transforms its culture to be Strategy and faculty director of the Kellogg Markets and more focused on customers, more Customers Initiative (KMCI) open, more agile. But, of course, resurgence is not guaranteed. Telecommunications company Motorola is one of the orga- It seems absurd that multibillion-dollar organizations could nizations the authors studied. A pioneer in wireless commu- struggle and even fail by embracing the same values and beliefs nication technology, Motorola thought its 80 percent market that drove their success. But the strong culture necessary to suc- share, supported by its engineering power, was unassailable. ceed can blind an organization when things go wrong. By the late 1990s, however, rivals had eaten away at that And as companies adjust and reinvent themselves, ignoring gain. Even then, it took five years for the precariousness of the need for culture change can stall a turnaround in its infancy. Motorola’s position to sink in. That is the one of the many hard-earned lessons found in In that situation, according to Resurgence, “The company is Resurgence: The Four Stages of Market-Focused Reinvention, left with a set of norms and behaviors that not only fail to serve co-authored by Gregory Carpenter, faculty director for the the market but can also be a liability.” Kellogg Markets and Customers Initiative (KMCI) and the Perhaps most difficult to understand is that sustained rein- James Farley/Booz Allen Hamilton Professor of Marketing vention is antithetical to doubling down on what worked in the Strategy, with Gary Gebhardt ’05 and former Kellogg professor past. Organizational values that no longer reflect the reality of John Sherry Jr. the market will not start working again simply because a com- “An organization develops its culture based on shared pany wills it. lessons from the past,” Carpenter says, “and the more success- Harley-Davidson, one of Resurgence’s success cases, ful [the organization], the more deeply held are the values and realigned its marketing and production efforts to appeal to a beliefs that define a culture.” new generation of motorcyclists; now, they’re the No. 1 brand When a market environment changes, however, many of among bikers under 35. those values suddenly stop producing successful results. And “The more successful [organizations] adapt,’” Carpenter when they do, organizations are faced with what seems like says. “They evolve with their environment.” an impossible choice: abandon their beliefs and values and But sustained reinvention is difficult to achieve, as Motorola embrace new, untested ones, or fade away. has found. At the core of any effort is constant “refreshing” of “The problem is that on a personal level,” Carpenter says, market understanding until the organization anticipates or even “abandoning values is a recognition that your understanding drives change, as it once did. of the world is no longer accurate. In a human sense, it’s very Then, Carpenter says, “Change becomes part of what you understandably a frightening realization.” do. Change becomes natural, and it’s not traumatic at all.” k The book proposes four stages of resurgence: recognize,

KELLOGGMAGAZINE.COM 23 | KELLOGG INITIATIVES: Architectures of Collaboration |

THE SCIENCE OF SOCIAL BIG SOCIAL DATA CUTS THROUGH HUMAN BIAS TO REACH PROFOUND CONCLUSIONS

BY FRED SCHMALZ ILLUSTRATION BY MARIO WAGNER

24 KELLOGG FALL/WINTER 2015 Humans are by nature social beings, and for many of us, parts of has great potential for business leaders across industries and our social lives play out online. functions. It turns out, others may influence us more than we While we may be aware that the trails of our social media realize. interactions — every post, purchase, “like” and shared pygmy “Until recently, we believed that each of us made our own goat video — are being aggregated into a trove of “big social decisions, and that our friends influenced us here or there, but data,” we may not know about the ways that information can be not in a big way,” Uzzi says. “All the social media data we’ve col- put to use. lected shows that we are incredibly sensitive to what other peo- For scientists like Brian Uzzi, access to big social data for ple do. That’s often the thing that drives our behavior, rather computational social science research has the potential to pro- than our own interests or desires or preferences.” vide deep insight into human behavior. The ability to examine a Incorporating this kind of data into the development of data set as large as an entire social network makes it possible to human-machine partnerships has the potential to improve accurately predict how people will act in a given situation, cre- human decision-making on both societal and individual levels. ating a guide to better decision-making and opening the door to Uzzi sees these partnerships as a way to optimize the best quali- human-machine partnerships that can improve our lives in ways ties of both humans and machines. we haven’t yet imagined. “Human beings have whole sets of cognitive biases that “People all over the world are sharing all this information,” lead them to make irrational decisions,” Uzzi says. “The idea of says Uzzi, the Richard L. Thomas Professor of Leadership and human-machine partnerships is that the machine can help you Organizational Change and co-director of the Northwestern overcome these innate, hard-wired cognitive biases to make Institute on Complex Systems. The effectiveness of these sure that you look at information from more perspectives. It masses of data hinges on how data logic and human cognition also provides a feedback loop that allows you to learn where you interact. “With computational social science, we are able to might have taken oblivious missteps.” rank it, filter it and make it useful for a machine.” For Uzzi, the real sweet spot in human-machine partner- Gaining a more ships is figuring out how to meld the great qualities of human nuanced under- beings, like spontaneity and improvisation, with machines that standing of the ways do rule-bound work better than humans can. “All the social ideas diffuse through “That would create a complementarity between the two media data a population and that gives you more than either one could possibly give you on how opinions change its own.” k we’ve collected

shows that we FACULTY EXPERT are incredibly sensitive to what other people do.” BRIAN UZZI Richard L. Thomas Professor of Leadership and Organizational Change and co-director of the BRIAN UZZI Northwestern Institute on areas of expertise: Complex Systems Behavioral finance, creativity and innovation, social media and networks § Current research uses social network analysis and complexity theory to understand outstanding human achievement in business, science and the arts. § Advises and speaks at major organizations and associations, including the Young Presidents’ Organization, Deloitte, Pepsico, Kraft, Abbott Labs, Credit Suisse, McKinsey, the World Bank and other corporations, firms, associations, and non-profits worldwide.

KELLOGGMAGAZINE.COM 25 | EXPERT OPINION | HEALTH CARE EXCHANGES LIKELY TO EXPAND U.S. SUPREME COURT DECISION VALIDATING FEDERAL EXCHANGE COULD PAVE WAY FOR BROADER USE OF INSURANCE MARKETPLACE, SAYS CRAIG GARTHWAITE

aren’t going to be many more challenges to the ACA that have any merit.” With the matter settled, attention can now shift to con- trolling the cost. An effective strategy could be eliminating the employer mandate, which encourages companies to recom- mend that employees purchase insurance on the exchanges. Adding healthy workers to the pool would spread the risk over a greater number of participants and should result in lower rates all around. “The goal of the ACA is to move away from employer-provided health care. It’s counterproductive to have an employer mandate put on top of that,” Garthwaite says. “What we want is to have younger employees on the exchange. It helps the risk pool.” Specialty grocer Trader Joe’s announced in August 2013 it would offer $500 stipends for employees working fewer than 30 hours a week to put toward a health insurance plan purchased on the exchanges, according to the Huffington Post. Health care consultancy Mercer reports that about 24 percent of employers surveyed after the Supreme Court decision said they would consider the health care exchanges as an alternative for part-time employees who are currently on employer With the battle over Affordable Care Act insurance subsidies health plans. completed, Americans who have relied on the federal exchange Employees who shop for insurance on the exchanges typ- for health insurance can breathe a collective sigh of relief. ically have a larger number of plans to choose from at lower It’s unlikely the ACA will come undone. As a result, the prices than small employers can negotiate on their own. The commercial use of the public exchanges is likely to expand court decision helps to level the as employers encourage workers to obtain insurance on the playing field as small businesses exchanges, says Craig Garthwaite, assistant professor of strat- compete with larger firms for FACULTY EXPERT egy at Kellogg. talent. CRAIG GARTHWAITE In a 6-3 decision announced June 25 in the King v. Burwell As more companies encour- areas of expertise: case, the U.S. Supreme Court agreed to interpret the phrase “an age use of the exchanges, the Health economics, pharmaceutical exchange established by the state” in the ACA’s broader context effect will be a move toward cre- industry, public finance, political to include the federal exchange, which the court inferred was ating a national marketplace for economy intended to serve as a fallback when a state did not establish its insurance unrelated to employ- own exchange. In writing the majority opinion, Chief Justice ment. “It’s going to be a pri- § Current research includes examining the effects of government policies John G. Roberts said the justices considered the significance vate-based universal health care,” and social phenomena in the health of undoing what has become an accepted method of obtaining Garthwaite says. “We are going to sector. health insurance for an estimated 6.4 million Americans who subsidize the purchase of insur- received subsidies on the federal exchange. ance through these exchanges.” § Served as director of research for “With these two decisions, they’ve made it clear they know Higher-paid employees who don’t the Employment Policies Institute, testified before the U.S. House of what Congress intended and they’re going to let Congress get qualify for subsidies still could Representatives and several state away with inartful language,” Garthwaite says. “That way, there benefit from a greater choice of legislatures on the minimum wage plans and less to worry about and health care reforms. Named one when switching jobs or starting a of Poets & Quants’ World’s Best 40 k BY ANN MEYER business. Under 40 Business School Professors PHOTO © EDDIE QUINONES PHOTO

26 KELLOGG FALL/WINTER 2015 | INSIDE |

INVESTMENT BANKING: NEW YORK

The U.S. banking industry needed more than a bailout following the financial crisis of 2008. It needed an attitude adjustment. That’s what legislators tried to achieve in 2010 when they pushed through the Dodd-Frank Wall Street Reform and Consumer Protection Act, a complex set of regulations determined to rein in the kind of risky investments and aggressive lending tactics that pummeled bank portfolios and sent the economy into a downslide. The law is so complex — it contained thousands of pages of laws and rules — that some pieces are still being hashed out today. Five years later, Kellogg alumni Gary Parr ’80 of Lazard and Christina Minnis ’92 of Goldman Sachs reflect on New York’s financial industry and how they operate in today’s climate.

BY LORENE YUE

KELLOGGMAGAZINE.COM 27 | INSIDE | THE NEW NORMAL BUOYED BY NEARLY 25 YEARS OF BANKING EXPERIENCE, MANAGING DIRECTOR CHRISTINA MINNIS ’92 GUIDES GOLDMAN SACHS THROUGH A NEW ERA

The tone in today’s financial industry feels familiar to Christina Minnis. It’s similar to when she started her career in the field. She graduated from Yale University in the midst of the savings and loan crisis, when large banks once deemed “too big to fail” were on the brink of doing just that. Fast-forward a few decades and the U.S. government was once again facing the prospect of bailing out financial institutions. Back in the late 1980s, Minnis was stepping into an industry coming off deregulation. Now, as co-head of leveraged finance in the Americas for Goldman Sachs in New York, she’s seeing the opposite as lawmakers put new standards into place. “The environment has changed as the industry matures,” she says. “This is a regulated industry and you have to innovate and operate within those regulations.” New rules have “added layers of complexity,” she says, but regulation doesn’t necessarily mean stagnation. Mergers and acquisitions are on the rise and headed for a record year.

“There has never been a better time to join investment banking.” CHRISTINA MINNIS ’92 Co-head of leveraged finance in the Americas, Goldman Sachs

“Look at the number of mergers and acquisitions [taking place],” she says. “I think there has never been a better time to join investment banking.” Minnis joined Goldman in the late 1990s, working on leveraged finance deals during the time when big banks like NationsBank and Banc One were getting bigger by buying Bank of America and First Chicago NBD, respectively. From there, she did a stint in the company’s leveraged finance division for health care. Her workload isn’t the only reminder that regulation hasn’t hindered the industry. Minnis is a member of Goldman’s recruiting team, which helps reinforce her view that finance, even in an increasingly regulatory environment, is still “very en vogue.” k

28 KELLOGG FALL/WINTER 2015 1,022 KELLOGG ALUMNI IN NEW YORK CITY Playing the market... for real Asset Management Practicum give students the chance to manage a $7M portfolio

Kellogg students get a front-seat view of risk and reward through the Asset Management Practicum, where mistakes have real financial consequences. The class requires students to monitor and trade within investment portfolios that currently stand at $7 million in total assets. “It’s soup to nuts what an equity portfolio manager has to deal with,” says Robert Korajczyk, the Harry G. Guthmann Professor of Finance and co-instructor of the course. It all began in 2007, when the first class had $2.7 million to manage. Assets have grown through student-based investments and endow- ment contributions. Students spend two to three quarters in the class as equity analysts pitching long or short positions on stocks. One additional quarter is spent on the other side of the table as a manager for one of four portfolios. Investment pitches are sometimes critiqued by industry professionals. Once a year, students travel to NYC to consult an advisory board of alumni and get feedback from portfolio managers. There are rules: Only 8 percent of the portfolio can be in a long position of a single stock and 4 percent in short positions. “We try to get people to not be pro-cyclical,” Korajczyk says. “Not just going long when the market is going up and not just short when the market is going down.” There have been hits in the past eight years, like buying Apple Inc. shares before its recent run. And there have been misses. “We’ve had [pitches to short a stock] where the portfolio manager didn’t take the position and could have made a lot of money,” he says. “There was a short pitch for Crocs and a week later, the stock went down 70 percent.” Then there was the pummeling of 2008 and 2009. “Going through the [financial] crisis was

obviously an experience,” Korajczyk says. k

KELLOGGMAGAZINE.COM 29 | INSIDE |

MOVING M&A Gary Parr’s job hasn’t changed much in the five years since Dodd-Frank passed. He’s still working on merger and acquisition deals in the OUT OF financial services industry. It’s just where he’s doing it that is different. NEW YORK The vice chairman of financial advisory firm Lazard is spending significant time advising projects in Spain, Austria, FOLLOWING BIG MERGERS WITH BEAR Japan and China. STEARNS AND LEHMAN BROTHERS, “Global is very exciting,” he says. “In the U.S., it’s rear- GARY PARR ’80 IS MORE ACTIVELY ranging bank portfolios because they have to meet their capital TAKING HIS TALENTS OVERSEAS requirements. They have to be conservative.”

30 KELLOGG FALL/WINTER 2015 22% OF KELLOGG ALUMNI IN NEW YORK CITY WORK IN FINANCE

institutions units. He ultimately went on to run the M&A division at Morgan Stanley before Wasserstein recruited him to Lazard in 2003. In announcing the hire, Wasserstein called Parr “one of the world’s outstanding investment bankers, with a wealth of experience and strong client relationships.” Since joining Lazard, the world’s largest independent advisory firm, Parr has continued to advise on large mergers, including Kuwait’s investment in Citigroup, the merger of Bank of New York and Mellon and the New York Stock Exchange becoming public. But now, thanks to Dodd-Frank and its requirements on how much capital banks must carry, the U.S. industry is downsizing, allowing Parr to take his 30 years of M&A experience to primarily do deals overseas.

“There’s a lot of positive things, such as [how to regulate] risk management and capital. But some rules are off the mark. A lot of the rules in Dodd-Frank have little to do with the financial crisis.” GARY PARR ’80 Vice Chairman, Lazard

“CEOs [of U.S. banks] are spending a lot more time on regulation,” he says. He has mixed views on the changes required by Dodd- Frank, which sought to prevent another widespread banking crisis by reining in risk in the financial industry. “There’s a lot of positive things, such as [how to regulate] He worked on a flurry of U.S. acquisitions in the heyday of risk management and capital,” Parr says. “But some rules are off the banking crisis, including the sale of Bear Stearns Companies the mark. A lot of the rules in Dodd-Frank have little to do with Inc. to JPMorgan Chase & Co., the sale of certain Lehman the financial crisis.” Capping how much banks can charge retail- Brothers’ assets to Barclays and Fannie Mae’s restructuring. ers when customers use their debit cards to pay for goods is one Parr has been advising on deals for roughly 30 years, start- example. ing out at First Boston Corp. Then he helped form the advisory Parr says he sees the U.S. financial industry moving back firm Wasserstein Perella & Co., co-founded by Joseph Perella to mergers and acquisitions, but it will likely be among banks and Bruce Wasserstein (who went on to become Lazard’s chair- smaller than the giants of JPMorgan Chase, Bank of America man and CEO before he passed away in 2009). Corp. and Citigroup Inc. Parr went on to Morgan Stanley in 1993, working in the “There’s a whole other tier that will, in time, do mergers,” firm’s global mergers and acquisitions and global financial he says. k

KELLOGGMAGAZINE.COM 31 “What’s more important is how you train yourself to acquire the necessary competitive advantage … to be in the position to invest in the next emerging company.”

32 KELLOGG FALL/WINTER 2015 | BRAVE THINKERS |

The Midas touch JENNY LEE BECAME THE FIRST WOMAN TO CRACK THE TOP 10 OF FORBES’ TECH INVESTOR LIST THIS YEAR, AND HAS NO PLANS OF SLOWING DOWN

he U.S. economy was already in flux whenJenny Lee ’01 now valued at more than $3.3 billion. Tsought to make her mark in the business world. Lee earned her undergraduate and master’s degrees in elec- “It was the worst possible time,” says Lee, who had just trical engineering at Cornell University, with a focus on wireless graduated from Kellogg. technology and control systems. But across the Pacific, China was emerging as an economic After Cornell, she returned to her native Singapore to work power, and Lee set off for Hong Kong to seek out opportunities. in the defense industry. She spent five years working on fighter “Huge country, huge potential,” she says of China. jets and drones. By all accounts, she parlayed those opportunities into a Then she veered into a different direction: an MBA at career that has made her one of the leading venture capitalists Kellogg. in the world. “I’m very technology-based, very techy, very quantitative,” Forbes recently named Lee, a managing partner of GGV she says. “So I felt like I needed to learn more about marketing Capital, to its Midas List Top 10 — ranking her 10th, the highest and strategy, and the MBA route was a very good one to enhance ever for a woman. and complete the education process.” One day, she says, a woman will be atop that vaunted list. While the U.S. economy was in decline, China’s business “The way l look at it, there are nine VCs in front of me. I scene was taking off, and Lee saw an opportunity. need to do a better job. There’s still a lot of improvement to get Over the past 14 years, the economic growth in China has further up there,” she says. boomed — and so has the presence of venture capitalists. In “The measurement is not that I’m the only woman in the 2000, there were fewer than 100 VC firms in China, she notes. Top 10,” she adds. “It’s not about who you are, where you’re from, By the end of 2014, the number eclipsed 8,000. or your gender — all that is actually not important. What’s more “There are more players in the market, more capital in the important is how you train yourself to acquire the necessary market … so it is more competitive.” That, she says, could make it competitive advantage … to be in the position to invest in the harder for newer VCs to break into the market. “It’s not impossi- next emerging company.” ble, but it’s a lot harder.” Lee has been with GGV since 2005. She built her success Lee cannot predict where her next big success will be. But on the growth of the consumer Internet sector and on digital she’ll find it, she says, if she remains ahead of the lightning-speed media. Among her biggest successes to date was in backing the shifts within the tech industry and the evolving demands of social networking platform YY, which went public in 2012 and is consumers. k

BY BOBBY CAINA CALVAN PHOTO BY BEN MILLER

KELLOGGMAGAZINE.COM 33 34 KELLOGG FALL/WINTER 2015 NEW COMPANIES ARE CHANGING WHO CAPTURES VALUE AND, IN THE PROCESS, REMAKING THE OLD ECONOMY-OF-SCALE APPROACH

BY ANDREA MUSTAIN ARTWORK BY VASAVA PHOTO BY JEFF SCIORTINO

jaunt down memory lane to ancient times — let’s say, 2010 — makes it clear: The weird, messy economic party the Internet started is in full, riotous swing, and thanks to an explosion in smartphone use, more and more people and companies are joining in. AYet these days, a mere smartphone app does not a successful business make. Instead, some leading companies are cutting out the middlemen, both virtual and physical, and connecting customers directly to what they want — and, increasingly, to sources that are physically closer and closer. Understanding this proximity of resources, capabilities, agency and knowledge of customer needs has allowed these companies to snatch market share — and money — from big-name, monolithic players that, for many decades, effectively owned huge swaths of economic turf. Now, thanks to new approaches to delivering both services (transportation, health care, energy) and actual goods (toothbrushes, airplane engines), economic territory is up for grabs. Innovative companies are using a combination of technology and creativity to drive the production and provision of products and services ever closer to the point of demand, reshape markets as we know them, and unmake the rules for who captures value and how.

KELLOGGMAGAZINE.COM 35 Breaking the (supply) chain Any discussion of this new paradigm isn’t possible, apparently, without uttering a certain four-letter word: Uber. Uber, with its unapologetic swagger, deftly connects consumers to a massive new crop of citizen drivers, Kellogg Clinical Professor of Innovation and Entrepreneurship Robert Wolcott says. By doing this, Uber circumvents the traditional taxi and car service industry while simultaneously capturing value for itself and a newly created workforce. “It unlocks resources to satisfy the wants and needs of consumers more quickly than the old solution — and brings many more people and resources to bear on the problem,” Wolcott says. Wolcott and Andrew Razeghi, a consultant and lecturer of marketing at Kellogg, are trying to understand what the swift pace of technological change will mean in the coming years, and what new business models will be required to stay on top. It’s early days yet, but as Razeghi says, we are witnessing “the unbundling of the corporation as we know it.” Uber, in other words, is only a symptom of a much bigger shift in who takes home the money at the end of the day.

New avenues of access Doctor On Demand, a telemedicine startup, “probably couldn’t even have existed three years ago,” says Seth Lasser ’05, VP of marketing at the San Francisco-based company. “The fact that everybody has the ability to have a two-way video conversation in their pocket makes our business possible,” Lasser says. FACULTY EXPERT “Consumers come to us the first time because of convenience. It’s fast, it’s late at night, they’re not feeling well, they can’t get

ROBERT WOLCOTT to their doctor and with us they areas of expertise: can be seen immediately.” Corporate innovation, venture capital and entrepreneurship SETH LASSER ’05 § Current research examines venture VP of marketing, Doctor On Demand capital investments in startup companies and how established companies create innovation for business value. § Provides innovation strategy and management advice for global corporations and entrepreneurs. Builds new companies in partnership with corporations and entrepreneurs.

36 KELLOGG FALL/WINTER 2015 FACULTY EXPERT

ANDREW RAZEGHI

areas of expertise: Corporate creativity and innovation, launching new products and services, change and new ideas § Current research looks at how companies can create innovative new products and service concepts. § Consulting work specializes in growth strategy and innovation serving Fortune 500 and private equity-backed companies. Recently named to Inc.’s list of 100 Great Leadership Speakers. Author of several books.

Nearly two-thirds of Americans (64 percent) now own a Separating winners from losers smartphone, according to an April 2015 Pew Research Center The novel arrangement that Doctor On Demand provides cir- report. That’s nearly double the percentage in 2011. Pew data cumvents an entrenched, unfriendly system, and investors are also show that as of October 2014, 42 percent of U.S. adults betting on its success. The company recently secured $50 mil- owned a tablet. And although this is all good news for a company lion in Series B funding. like Doctor On Demand, the mere presence of a possible market But as Lasser points out, Doctor On Demand is by no doesn’t guarantee customers. means the only player in telemedicine. What sets the company What does bring customers, Lasser says, is what the com- apart, he says, is not only the quality of the product, but the way pany offers — backdoor access to something that is a huge it’s delivered. “We’ve got more five-star reviews on the app store headache for many, many Americans: health care. For $40, any- than everybody else combined,” Lasser says. “It’s as simple, and one with a two-way video connection can see a medical doctor complicated, as having the best user experience.” nearly instantaneously, which, as anyone who has navigated the Indeed, says Sunil Chopra, IBM Professor of Operations maddening steeplechase of insurance, crowded doctor sched- Management and Information Systems. For companies trying ules and inconvenient hours can attest, is practically impossible to rise above a host of competitors offering similar products, the through traditional channels. customer experience can be the deciding factor. Chopra gives “Consumers come to us the first time because of conve- the example of Amazon.com and Walmart.com, two e-com- nience,” Lasser says. “It’s fast, it’s late at night, they’re not feeling merce retailers so similar that Chopra joked that the difference well, they can’t get into their doctor and with us they can be seen between typing Walmart.com or Amazon.com is trivial, “only a immediately.” The company also sees a lot of consumers who difference of one keystroke,” he says. can’t afford to get health care through traditional channels. “But Yet despite its massive supply chain and established pres- their primary feedback — the reason they come back — is that ence across the United States, Walmart.com has lost out in the the doctors are amazing,” Lasser says. online retail space to a company that made ease of use central to

KELLOGGMAGAZINE.COM 37 the customer experience, says Chopra. “That is really something that Amazon realized very early on, and it has helped it a lot.” And it’s not just about making your app or website intui- tive and easy to use, says Rob Day ’01, a partner at Black Coral Capital, a private equity firm that invests in natural resource innovation. Increasingly, a well-designed consumer experience requires behind-the-scenes work to connect the “full stack” of what customers will need, forcing them to make as few choices as possible. To illustrate, Day uses an example from the burgeoning rooftop solar industry, another example of a direct-to-consumer model that is cutting out a monolithic middleman. Imagine, he says, that you decide to go with solar in your home. You have to buy solar panels, yes, but also figure out installation, backup power, permitting, a monitoring system and smart appliances. And somehow finance the whole thing. In other words, it’s con- fusing and time-consuming. Companies that can own that entire backend process and deliver it in one neat package will inevitably beat out businesses that offer only one service and leave consumers to do all the connecting, says Day. So, he adds, “It’s really more about bundling services and user experience, not just user experience.”

From services to stuff One company bundling services with an actual physical prod- direct-to-consumer market but, perhaps more importantly, will uct, and with no middleman in sight, is CloudDDM. Co-founder also someday allow companies to eliminate many of the costly Rick Smith ’94 calls it “the world’s first fully automated 3-D requirements of doing business, everything from shipping to production factory.” storage to inventory forecasting. “Why not have a desktop 3-D The company, which launched in May 2015, runs 100 printer where you can print out a part?” Salnikoff says. industrial-scale printers inside UPS’s Louisville shipping hub. It combines an easy user experience — drag-and-drop 3-D print- Startups vs. incumbents ing capabilities — with scale, and overnight delivery to 48 states. MakerBot is a young company. In just six years, it has gone from “You can have an engineer hit print when they go home, and the a hobbyist’s entity to a power player with an eye on the future, part arrives on their desk the next morning,” Smith says. its web-enabled, software-rich printers embedded everywhere “I think it’s a brilliant model, and it significantly enhances from elementary schools to product labs at GE. And just like efficiency for specific kinds of products,” says Wolcott, “but as many other ascendant, transformative businesses that have [Rick will] tell you, it’s a transitional model.” upended traditional models, it started with just an idea and a few Indeed, Smith envisions a future where 3-D printers are ambitious people. everywhere, and consumers can order a pair of customized “The world is very different than a decade ago for entrepre- sneakers they can pick up around the corner a few hours later. neurs,” Wolcott says. “All the old-school industrial infrastructure that is set up to And this means that the big guys are looking intently in the deliver mass production gets dismantled,” Smith says. rearview mirror. Yuri Salnikoff ’95, CMO of MakerBot, the Brooklyn- “I think they’re worried,” Razeghi says, “but they’re wor- based upstart desktop 3-D printing company, agrees. Salnikoff ried about symptoms, and they’re not dealing with the cause of says that desktop 3-D printing can not only change the the problem, which is that markets are up for grabs today.” However, Razeghi, Wolcott and Day all say that massive companies have some inherent advantages. Familiarity and comfort are powerful forces when it comes to buying behavior, and the brands we all know are firmly fixed in our collective consumer subconscious. “It’s not certain that the winners have to be outsiders,” Day says, adding that big corporations aren’t fated to plod toward obsolescence. “It’s a matter of whether they choose to lead the parade or get dragged kicking and screaming into the future.” And regardless of who wins, says Chopra, these are shifts “that in the end are going to be very good for the consumer.” k

38 KELLOGG FALL/WINTER 2015 FACULTY EXPERT

SUNIL CHOPRA

areas of expertise: Logistics and distribution management, design of communication and distribution networks “It’s not certain that the winners § Recent research considers risk management in supply chains and have to be outsiders. It’s a matter distribution systems in a variety of companies, trying to identify of whether they choose to lead market, manufacturing, and product the parade or get dragged kicking characteristics that drive the structure of a supply chain. and screaming into the future.” § Departmental editor for Management Science and an ROB DAY ’01 associate editor for Decision Partner, Black Coral Capital Sciences, Manufacturing & Service Operations Management and Operations Research.

KELLOGGMAGAZINE.COM 39 the predictions pan out, the estimated 25 billion of Technology, director of Kellogg’s Center for Research in devices around the globe that currently connect to Technology and Innovation and clinical professor of marketing. the Internet will double in number by the year 2020. “In our on-demand economy, every service in the future will be IfEmbedded with sensors, products continue to enter the enabled by a smartphone or other smart device,” says Sawhney. marketplace with increasingly higher IQs. Today, smart cars, homes, electrical grids, treadmills and other devices enhance Disruption happens our lives and personalize our experiences. Via a broadband net- As Kellogg teaches, innovators first must create strategies that work, these “smart things” communicate not only to people but solve problems and offer superior customer experiences before also to each other (machine to machine or M2M). anything else. Hyperconnectivity is upending every facet of society. Smart “Startups need to build an MVP, test the market and custom objects are transforming business practices in health care, util- develop their products with customer feedback,” says Daniel ities and transportation, to name a few industries. At the touch Kellmereit ’05, CEO of Detecon Inc., a San Francisco-based of a screen, intelligent devices are linking consumers to services consultancy specializing in long-term digital strategies and that only exist because of wireless communication. And innova- co-author of The Silent Intelligence, a book about the Internet tors from every quarter are taking advantage of ubiquitous con- of Things phenomenon. “There’s no master plan for digital dis- nectivity to create, usually by happenstance, new marketplaces. ruption. It’s more an evolution that is accelerating every day, Entrepreneurs are also taking advantage of digital technol- and new market entrants often have an advantage against estab- ogy to bring together buyers and sellers in new ways. This trend lished players because they can build without legacy infrastruc- has seriously disrupted traditional business models, accord- ture and complex organizational boundaries.” ing to Mohanbir Sawhney, McCormick Foundation Chair From its inception, Tesla Motors embraced the credo of developing outstanding high-performance electric vehicles to support sustainable transportation.

BY CHERYL SOOHOO ILLUSTRATION BY NATE LUETKEHANS

40 KELLOGG FALL/WINTER 2015 FACULTY EXPERT

Competing against large luxury sedans, the Tesla Model S has wowed auto industry experts with its speed, handling, ride and unique over-the-air updates. Similar to a smartphone, Tesla vehicles receive upgrades via the Internet rather than at the dealer service center. The Palo Alto, California-based firm sends out software fixes to improve functionality, from enhancing acceleration by fine-tuning the algorithms that drive the motor to alerting drivers that their car may be running out of juice. MOHANBIR SAWHNEY This sophisticated level of connectivity has truly distin- areas of expertise: guished the company in the auto industry — but that is just how Entertainment and high-tech Tesla has rolled from day one. marketing, information technology, “Tesla was born in Silicon Valley,” says Diarmuid marketing management O’Connell ’96, the company’s vice president of business devel- § Current research focuses on opment. “Connectivity between the individual and hardware advanced digital marketing, is core to us.” Building “platforms” rather than cars, Tesla can engagement marketing, business refresh, improve and extend the lives of its vehicles and in part, innovation and enterprise analytics. fulfill the startup’s sustainability mission. § Consulted and spoken with more Increasingly, Internet-connected cars have become more than 100 corporate clients in more akin to large mobile devices than simply a mode of transporta- than 30 countries and has worked tion. This concept of computers on wheels will only grow, pre- with more than 50 Fortune 500 dicts O’Connell. “Mobile connectivity is challenging people’s companies. Co-author of several assumptions about what cars are and what they are truly capa- books, most recently Fewer, Bigger, ble of providing users.” Bolder with Adjunct Professor of Executive Education Sanjay Khosla.

KELLOGGMAGAZINE.COM 41 Revitalizing antiquated industries is then sent to Align, who works with the doctor to create a set of Using metal wires and brackets to straighten crooked teeth has clear “aligners” that are manufactured to the doctor’s specifica- been around since ancient times. And while metal braces remain tions using 3-D printing. the treatment method of choice, Align Technology, the market Now, more and more dental practices consider digital scan- leader of clear plastic braces, has steadily chipped away at that ners a must-have, like ditching a slide rule in favor of a calcu- traditional market with untraditional tools. lator. Align Technology foresaw this trend, acquiring intraoral First, the San Jose, California-based company introduced scanner company Cadent in 2011 and leveraging its iTero scan- the Invisalign system, a novel technique for aligning teeth pre- ner to further drive adoption of Invisalign treatment. dictably while providing a more comfort- able feel and an aesthetically pleasing look. And rather than having an orthodon- tist adjust the braces by hand, computers “There’s no master plan for digital custom-fit these devices to patients. “We have fused cutting-edge 3-D disruption. It’s more an evolution that scanning software with science to bring orthodontics to the next level,” says Tom is accelerating every day.” , who retired as president and Prescott ’92 Daniel Kellmereit ’05, CEO of Detecon Inc. CEO in June, but remains on the board of directors. “With digital scanning, dental professionals can virtually model an individual’s teeth and bite “Digital technology is quickly changing dentistry forever,” with greater precision — a much better value proposition for says Prescott. “Sometimes it takes generational change for patients.” innovations to become the standard of care, but I am confident The process works like this: A doctor uses an intraoral scan- Invisalign clear aligners will do just that in the next five to 10 ner to create a digital 3-D model of the patient’s teeth. That file years.”

42 KELLOGG FALL/WINTER 2015 Updating existing business models among multicategory retailers and fifth across all industries, Online sales continue to expand into the traditional brick-and- according to the 2015 Internet Retailer Mobile 500 database. mortar retail market. In the beginning, desktop computers pro- “With two clicks using the iPhone app, for example, our vided the first electronic shopping carts. Now mobile devices customers can quickly purchase items they see on air,” says — tablets and smartphones — are becoming trusted shopping George. “It’s a frictionless way to shop.” venues. A leader in video and e-commerce retail, QVC quickly Bigger connectivity picture jumped on the e-commerce bandwagon in the late ’90s. As of the As the connectivity of smart things transforms business models first quarter of 2015, online orders accounted for 42 percent of and creates new markets, the possibility of smart cities and even consolidated revenue for the West Chester, Pennsylvania-based a smarter planet seems to be on the horizon. But to what end company. At first, QVC worried that Internet shopping would and for whom? cannibalize its broadcast retail sales efforts, but instead it has Channeling the power of connectivity in ways that benefit found a happy medium. society as a whole will take widespread participation — from “It turned out our TV programming reinforced the comfort innovators, policymakers, consumers, educators and advocacy level of our audience with buying online and helped to establish groups, all of whom must help shape the beneficial uses of dig- credibility for the e-commerce category,” says Mike George ’85, ital technology, according to Sonita Lontoh ’06, head of global CEO and president. “Even 10 years ago, there was a fear factor marketing at Trilliant, a Silicon Valley company specializing in about having to supply credit card information electronically.” the smart energy sector. Storytelling across platforms and creating shared experi- “There continues to be too much of a focus on gadgets and ences via social media (Twitter, Instagram, blogs and Facebook) apps and not enough on systems and platforms to translate data allows QVC to engage its core audience: 35- to 65-year-old into insights and, most importantly, into actions that improve females. Meanwhile, mobile apps have gained traction with efficiencies and result in a better way of living,” says Lontoh, an QVC customers. Mobile commerce accounted for 52 percent Internet of Things expert. “A connected world is a journey and of global ecommerce orders, as of the first quarter of 2015, and not a destination. Technology is just a means to how we, as a QVC is ranked as the third largest mobile commerce retailer society, can leverage it for a greater good.” k

KELLOGGMAGAZINE.COM 43 “Whether you are in the public sector or the private sector, you have got to be pretty good at understanding teams if you want to be successful.”

44 KELLOGG FALL/WINTER 2015 | BRAVE THINKERS |

The bridge builder CHARLIE BAKER BRINGS TOGETHER BOTH SIDES OF THE AISLE AS GOVERNOR OF MASSACHUSETTS

or Charlie Baker ’86, one of the most memorable aspects of improving the state’s aging transportation system — without FKellogg was collaborating with students from varying back- getting distracted. grounds whose perspectives sometimes differed from his own. And in keeping with Kellogg’s emphasis on teamwork, he Working well with others remains a reality for Baker: He has picked a diverse group of team members. “If you look at our was elected Massachusetts’ governor in November 2014 as a administration, we have seven cabinet secretaries and a chief Republican in a deeply Democratic state. His election came of staff, and they are three Republicans, four Democrats and an on the heels of a business career that included serving as CEO independent,” he says. “For those keeping score, that’s a pretty of Harvard Pilgrim Health Care, a nonprofit health benefits iconoclastic perspective.” organization. Baker had served under Massachusetts governors William “In government you don’t get to pick the people you have Weld and Paul Cellucci. But he says adjusting his communica- to solve a problem with or identify a solution with,” Baker says. tion style from his business days has been a challenge. “The message Kellogg sends is this: The days you choose who “There’s a way of talking to a commonwealth that’s differ- plays with you in your sandbox are over.” ent than the people who are your customers and employees and Bay State voters appear satisfied so far with how he’s han- colleagues and suppliers,” he says. “It’s a much bigger universe.” dling the task. A Suffolk University poll in April showed him with Baker says he recommends politics to people in the cor- a 74 percent favorability rating and a 70 percent approval rating, porate sector interested in public service, but warns that they higher than that of any other state’s chief executive. “Even for should get used to being under a microscope. “Everything you someone in his honeymoon period, that’s a pretty astonishing say and do is public fodder,” he says. approval rating,” Tom Jensen, director of the Raleigh, N.C.- But for those who thrive on teamwork, which Kellogg advo- based polling firm Public Policy Polling, toldThe Boston Globe. cates, politics can be deeply satisfying. He adds: “I would argue Baker, who had unsuccessfully challenged Gov. Deval that whether you are in the public sector or the private sector, Patrick in 2010, won praise for his handling of the blizzards that you have got to be pretty good at understanding teams if you buried the Boston area last winter. He says he has tried to pick want to be successful.” k a few key objectives — including tackling a budget shortfall and

BY CHUCK MCCUTCHEON PHOTO COURTESY OF GOVERNOR BAKER’S OFFICE

KELLOGGMAGAZINE.COM 45 Pulling a CORPORATE COUNTERPUNCH

AS STARTUPS PUSH THEIR WAY INTO THE MARKETPLACE, ESTABLISHED COMPANIES SEEK NEW COMPETITIVE RESPONSES

BY HEATHER BLAHA ILLUSTRATION BY ANDREW BANNECKER

46 KELLOGG FALL/WINTER 2015 The 4 A’S TO COMBATTING DISRUPTION Professor Mohan Sawhney offers four corporate strategies for dealing with startups trying to steal market share

Attack digital disruptors by creating a disruptor of your or a traditional company enjoying a long life span, own. This is the most radical approach of the four — the idea of being in business no longer means simply staying cannibalizing yourself before someone cannibalizes you. in business. To keep going — and growing — leaders Example: HBO creating streaming services HBO Go and HBO Now in of established companies know that they must con- response to Hulu, Amazon and Netflix. Fstantly prepare for and engage with disruptive innovation rather than react to or fight against it. For some, it means acquiring a cutting-edge competitor. Acquire a startup and keep your cannibals in the family. This For others, it means creating a board of digital advisors to help is the most popular strategy and can result in a great marriage combining the distribution, scale and assets of the large company lead the technological efforts of executives. Others still will find with the innovation of a startup. value in engaging directly with a startup, creating a mutually beneficial relationship. Example: Allstate acquiring Esurance. Since Allstate agent channels would Rather than fighting back against encroaching innovators, not let them go direct to customer, they chose to acquire Esurance and today’s corporate mindset has shifted more toward generous keep it at arm’s length. collaboration, encouraging leaders and employees to always think like innovators – and to be open to outsiders. For many Absorb by incorporating innovative activities into mainstream industries, the landscape for moving nimbly and deliberately in business. Instead of fighting against the innovators, use their business the marketplace offers more engagement options than ever. model. Example: A traditional taxi company can learn from Uber by creating its Four ways to respond own app with similar features and capabilities. According to Mohan Sawhney, the McCormick Foundation Chair of Technology, corporations can respond to innovation Adapt by learning from and thinking like digital disruptors. by taking one of four strategies: attacking, acquiring, absorbing Question assumptions, embrace agile processes, build marketing into or adapting. “This can be done by disrupting an external dis- products, leverage privileged assets. Think big, start small, scale fast. ruptor or even cannibalizing your own business, by forming a Example: Target Corporation created an internal digital advisory board as great marriage, by quickly incorporating innovation activities a way to improve digital savvy and remain strong against Amazon. into mainstream business or by observing, learning and general adaptation,” says Sawhney. “An approach can range from quite radical to one with lower impact and less disruption,” he says, and the desired approach takes corporate history and culture, alongside current market trends, into account. In the early 2000s, E. & J. Gallo Winery recognized a cul- to offer fell in line with the insight that we were already toying tural shift in traditional U.S. wine consumption, says Stephanie around with internally,” says Gallo. Gallo ’99, vice president of marketing. The relationship con- Started by two entrepreneurs, Ernest and Julio, E. & J. sumers had to wine was changing, as smaller, newer wineries Gallo has been a wine industry leader since 1933 — meaning were offering both new products and perspective. “Wine was that this family-owned business has been innovative decade no longer viewed as an elitist beverage,” she says, “but rather after decade. By anticipating and reacting to outsider innova- as something enjoyed in casual social occasions.” She acknowl- tion successfully, according to Gallo, the winery has undergone edged that Gallo’s brand needed a shift to live up to their belief an evolution approximately every 10 years to stay relevant. “The that, like life, wine should be more fun and less serious. causes and effects of each evolutionary period may change, but The winery’s game-changing move came with its acquisi- preparation and solutions for the next decade are essential for tion of Barefoot in 2005. Gallo and her team saw Barefoot wines the success of any company,” she says. speaking (and selling) to a new wine-drinking audience in a less serious way and at a lower price point, so they sought an acqui- Adapting through advisory sition based on the principles of partnership: “We were looking One of Target Corporation’s strategies for adapting to disrup- at building and changing our brand organically, and the Barefoot tive innovation — specifically, against Amazon getting stronger opportunity came to us. We recognized that what Barefoot had — was its creation of a digital advisory board. The board leads

KELLOGGMAGAZINE.COM 47 “How we get customers what they want is going to take a tremendous amount of technology, innovation and creative combinations of assets, but to me, that combination is our differentiator in the marketplace,” says Farsht.

Connecting corporations and startups A “spectrum of engagement,” says Linda Darragh, executive director of the Kellogg Innovation and Entrepreneurship Initiative (KIEI), can be the best way to develop the most powerful innovative relationships. Rather than the commitment of a contract, she believes that corporations and startups should engage in any level of innovative strategizing that suits both parties. From apprenticeship and mentoring to joint ventures and corporate development, identifying an ideal partner — and depth of partnership — takes significant legwork and a strong methodology. Seeing a need in the marketplace for connecting corporations to innovative startups and entrepreneurs, David Weinstein ’00 founded Freshwater Advisors in 2013. For the first time, he says, corporations were starting to see their businesses truly interrupted by entrepreneurs. “In a 2012 report by Richard Foster from Yale, it was reported that the life span of an S&P 500 company had gone from about 60 years in 1960 to around 15 years in 2014,” he says.

by technological example, says Stephanie Gordon Farsht ’97, Target’s senior group manager of innovation and strategy and adjunct professor at Kellogg teaching New Venture Discovery. In June 2015, The Wall Street Journal noted Target as a trendsetter for other companies seeking to improve their digital savvy internally. The power of a digital advisory board, says Farsht, is that it’s a low-risk, highly effective (honest, fast, effi- cient) strategy for bringing ideas and feedback to the executive table. Engaging technological experts who can help an established company work smarter and faster in the digital consumer space allows Farsht to fulfill her team’s goal. “Our team is primarily there to disrupt,” she says. “We bring in things that are non-mainstream. We help companies navigate Target that generally wouldn’t have the opportunity to navigate within our organization. We enlist advisors, partners and acquisition tar- gets to really help bring in new ideas to our company.” So, how does Target position itself against Amazon, which offers a very different consumer experience? Farsht says that as customers want transparency — and power — Target is finding ways to meet them at various points of demand. By giving its customers choice in delivery method, timeline and even on-demand pick up, Farsht and her Target team recognize that they have key assets that a company like Amazon doesn’t: 1,800 locations within a mile or two of 95 percent of U.S. customers.

48 KELLOGG FALL/WINTER 2015 “Corporations were looking for new ways to engage with startups, but they didn’t know how to do that themselves,” he says. By helping corporations accelerate their innovation needs in a systematic way, Weinstein has led both sides away from thinking about partnerships merely through the lens of investment. To have entrepreneurial strategies infused into their business, corporations were looking to experiment directly with entrepreneurs. In addition to developing a clear methodology for this service, Freshwater has built a technology to help corporations see what startups are relevant to their innovation priorities, utilizing Freshwater’s scouting network and portfolio software. By matching startups with corporate needs, Weinstein has paved the way for partnerships with Allstate, Exelon, CME Group, Hyatt and Navigant, to name a few.

“Corporations want to improve their innovation IQ by connecting not just internally on innovative idea generation, but more specifically on external partnerships that will help them with speed-to-market innovation.”

David Weinstein ’00 Founder and Managing Partner, Freshwater Advisors

Improving innovation IQ Weinstein adds, “Corporations want to improve their innova- to give people what they want: quick access, many choices. tion IQ by connecting not just internally on innovative idea gen- Informed by experiences in a wide range of corporate environ- eration, but more specifically on external partnerships that will ments, she acknowledges just how innovative Hotels.com truly help them with speed-to-market innovation.” With the most is all the time, under the Expedia corporate umbrella. agile and successful corporations not slowing down any time Adding tiers to the customer loyalty program brought new soon to deliver on consumer expectations, he believes they are dimensions and a fuller customer-focused experience essential truly disrupting the disruption game. for an industry ripe with competition, she says. “One of the other Another way to explore consumer opportunities — and things we did was to evolve our lodging offerings — all of which determine which are best suited for implementation — is to pilot can help travelers earn or redeem more loyalty rewards. If you and test ideas, says Farsht. “At Target, we want to throw a lot of want to stay in an upscale, standard or boutique hotel, an apart- things on the wall that we don’t necessarily think are right or ment, bed & breakfast, hostel or even the YMCA, you have that wrong, but that we can get a huge amount of experiential learning choice,” says Petticrew. from,” she says. “One out of 10 of those is going to stick, and then With a name like Hotels.com, she says, there is a very clear suddenly it will accelerate tremendously fast.” The way to go fast message about what the company offers and what you’ll get. is by partnering, and partnering is something that Target is learn- “Our North America advertising is all about Captain Obvious, ing to do better and better, she says. which we have found is exactly what we live up to and what peo- As the head of global loyalty programs for Hotels.com, ple want: The obvious — along with transparency and control.” k Connie Petticrew ’88 is also always trying to figure out how

KELLOGGMAGAZINE.COM 49 EVOLUTION OF THE ENTREPRENEUR AS INCUBATORS AND ACCELERATORS GROW WORLDWIDE, A NEW KIND OF ENTREPRENEUR IS EMERGING, ONE WHOSE MISSION IS TO HELP OTHERS LAUNCH THEIR COMPANIES

BY SARA LANGEN

they developed their idea for Groovebug in the public-private partnership incubator. As NUvention: Web + Media program back in 2011, Funded jointly by the public and private sectors, the incu- Nishant Verman ’11 and his co-founders felt like they were bator grew out of what Verman and his colleagues saw as a need onto something: a personalized, rich media music magazine that in India for enabling entrepreneurship in colleges. “We realized aggregated content based off a user’s iTunes library. if we could make entrepreneurship accessible down to the uni- “When we started, it actually didn’t work,” Verman says, versity level, then we could create a generation where people “which was great experience because we learned a lot about would be unafraid to take risks because they had not that much what the consumer cared about.” to lose,” he adds. Verman and his team pivoted quickly, creating a new product: a next-generation music app that brings a music publish- Generation “E” er’s catalog to mobile devices. Verman changed course as well, Entrepreneurs like Verman are becoming the norm, as are incu- going on to become senior director of corporate development bators like Startup Village. The last decade has seen not only a at e-commerce giant Flipkart in India. But he shares that lesson boom in the number of incubators and accelerator programs and many others as a board member at Startup Village, India’s around the world but also a radical shift in what these spaces

50 KELLOGG FALL/WINTER 2015 FACULTY EXPERT

can offer. The corporate parks of old providing discounted office space are a thing of the past. Today, incubators and accelerators have become entre- TROY HENIKOFF preneurial ecosystems that provide expertise, support, mentoring and access to financing, essentially everything areas of expertise: Entrepreneurship, digital marketing, businesses need to get started. They also understand that a digital technology growth long-term focus is critical to building and sustaining these ecosystems, says Troy Henikoff, adjunct lecturer and managing § Managing director of Techstars director of Techstars Chicago, formerly Excelerate Labs, where Chicago, a seed-stage accelerator he served as co-founder and CEO. in Chicago, and managing director of MATH Venture Partners, an early “You have to have a long-term, generational view,” he says. to midstage venture capital fund “If you do it because you want to see some great companies, focusing on technical and digital invest in them and turn a profit in the first year, you will fail. If companies. you want to help build an ecosystem that, 20 years from now,

KELLOGGMAGAZINE.COM 51 will be this rich, fertile ground for early-stage technology com- local government, venture funds and hundreds of mentors. And panies, you will have a shot at building something great.” in the thick of it is Tullman, overseeing this huge network of people, capital and ideas. Developing the meta-entrepreneur “I realized there’s no word for him,” Wolcott says. “There’s In developing these kinds of ecosystems, people like Techstars no word for this role.” Co-founder Brad Feld have become what Kellogg Innovation Network Co-founder and Executive Director Robert Wolcott Beyond the Valley refers to as a “meta-entrepreneur.” Greater accessibility to the Internet, enhancements in mobile “It’s an entrepreneur whose mission is to help other entre- technology and the widespread adoption of e- and m-commerce preneurs be more successful,” Wolcott explains. “They are mean that these meta-entrepreneurs can build startup-friendly leaders who make it their mission to build an organization, eco- environments in places outside of New York and San Francisco. system or program to significantly influence and support the “We’re now connected and able to work anywhere because success of other entrepreneurs.” all the resources can be accessed from anywhere,” says 1871’s He got the idea for the term after speaking with Howard Tullman. “It’s not just that there are incubators or accelerators, Tullman, CEO of 1871. A serial entrepreneur who has launched it’s that the overall entrepreneur community now is materially or saved dozens of businesses, Tullman is considered one of different because people are no longer location-constrained in the most sought-after entrepreneurial minds. “But now, he has any respect.” a very different challenge,” Wolcott says, “which is building an Because of that, communities full of new and transforma- entrepreneurial ecosystem at 1871.” tive businesses have begun popping up around the world, says Housing more than 350 digital technology startups and Malcolm Hebblewhite ’00. “We’re seeing multiple sites pop- graduating 65 companies in just three years, 1871 goes beyond ping up as potential candidates where you can start your busi- the term incubator, with support from universities, state and ness because infrastructure has advanced,” he says.

52 KELLOGG FALL/WINTER 2015 Hebblewhite has a firm grasp on Sydney’s growing community of entrepreneurs. He spent years consulting for tech-based startups before joining Ignition Labs, Australia’s first niche seed accelerator program for early-stage medical device technologies, as a mentor and investor. Later, he joined tech incubator ATP Innovations as director of business development. Currently, he works as sales and marketing manager for Rex Bionics, a Sydney-based medtech startup developing exo- skeletal walking devices for the physically impaired. “I wanted to bring to bear some of the experience I had, not just in medical devices but also in startups,” he says. “There’s a lot of activity around startups in Sydney — a lot of support, a lot VENTURING INTO of groups, a lot of venues. There’s even an increasing amount of investment capital available.” A NEW WORLD Those growing communities are becoming more and more EMBA elective teaches the nuts attractive to venture capital firms looking for a front-line position and bolts of capital investment and on all the latest — and potentially lucrative — developments in identifying growth opportunities technology, says Rodrigo Baer ’07, principal at venture capital firm Redpoint eventures. Baer knows the territory. He started off co-founding Warehouse Investimentos, an early-stage VC fund based in São The Kellogg-Recanati Executive MBA Program Paulo, with classmates Moises Herszenhorn ’08 and Pedro offers the global elective course, Venture Melzer ’07. “We were one of the very first VCs in the market Capital — What’s It All About, presented by here, so it was not only being an entrepreneur and creating your veteran IT executive Avi Zeevi, a major player own VC but also being an entrepreneur in the sense of creating in the Israeli VC community. a whole different industry that didn’t exist.” Zeevi is co-founder and general partner Now with Redpoint eventures, Baer can walk his compa- at early-stage tech VC firm Carmel Ventures, nies through the challenging Brazilian market, where infra- which has more than $800 million under structure and attitudes about entrepreneurship are catching up. management. “In Brazil, it’s harder to get started,” Baer says. “It takes The course focuses on the VC indus- more money, time and resilience. On the flip side, once you get try, its players and their respective roles. some traction, very few competitors are able to come into the Participants experience the life cycle of market, so once you get over that hill, you’re probably going to investment decisions and learn the VC game see better margins.” plan and best practices of the industry. This allows students to get into the mindset of both parties and learn how to avoid com- Standing on shoulders mon pitfalls within a classroom environment. Learning and sharing with other entrepreneurs is one of the Students from the entire global network main benefits of entrepreneurial ecosystems. “What’s really can attend, including EMBA students from great is that you can stand on the shoulders of those who’ve been Evanston and Miami. there before,” Henikoff says. “Professor Zeevi’s venture capital course CEO and Founder of Keyrious, a luxury wearable tech is very popular every year, due to several company, has had the benefit of learn- Emily Fallon Baum ’13 factors,” says Jennifer Gerrard, director of ing from others through her role as entrepreneur-in-residence Kellogg’s Executive MBA Global Network. at Citrix Startup Accelerator in Santa Clara, California. It’s a “Professor Zeevi’s depth of practical expe- program she helped design and which has connected her with rience in VC, along with the interactivity of many successful mentors. “The Bay Area is a big connector cul- the class and its setting in Tel Aviv, a hub of ture,” she says. “Many of the people who have made it want to startup activity, make it a must-take for those help others succeed.” interested in understanding the VC industry.” While she builds Keyrious into a successful enterprise, Baum uses her time at Citrix to help others navigate the winding road entrepreneurs face, making her own path to launch a little less bumpy. “I really enjoy getting to step out of my own bubble for a bit to share the resources and techniques that I have discovered with other entrepreneurs,” she says of her Citrix experience. “Seeing them realize their goals is incredibly rewarding.” k

KELLOGGMAGAZINE.COM 53 “What I hope comes out of my leadership is the courage to change and innovate. You can’t be afraid to reinvent.”

54 KELLOGG FALL/WINTER 2015 | BRAVE THINKERS |

The new boss SINCE BECOMING CHAIR OF CARLSON IN 2013, DIANA NELSON HAS MOVED QUICKLY AND BOLDLY TO ENSURE THE FAMILY COMPANY’S CONTINUED SUCCESS

urtis L. Carlson used a $55 loan in 1938 to start his family One of her first tasks was to launch a data-driven and ana- Cfortune. His Gold Bond Stamp Company quickly became a lytical review of the company’s portfolio and structure. The household name across the United States. review led to the decision in 2013 to shed its TGI Fridays restau- His Minnesota-based venture, under the Carlson family rants and refocus on its travel and hotel operations. name, has grown into one of America’s largest family-owned “It was difficult to let it go emotionally,” she says, noting companies. Carlson employs more than 100,000 people world- that her grandfather grew the TGI Fridays brand from 13 restau- wide, in 1,300 hotels and through its global travel manage- rants to more than 1,000. “But analytically, it was much easier to ment company. In 2014, the company generated $35 billion in make that decision. revenue. “It’s the kind of decision where you have to balance emo- The third to helm the company’s board, Diana Nelson ’89, tion and sentiment from close family connections with position- is following in the footsteps of her grandfather and mother. ing the company for the long term.” Since assuming the chairmanship in 2013, she has reshaped After shedding its restaurant businesses, Carlson assumed the company’s portfolio to secure company profitability and full ownership of Carlson Wagonlit, the company’s travel unit, sustainability for future generations. by acquiring the minority stake from JPMorgan Chase. “The challenge I think in a family company, particularly After reviewing its portfolio, the board also moved to in a concentrated ownership, is the need to balance history and restructure its governance after the retirement of its chief continuity versus change and innovation,” Nelson says. “Part of executive officer. Instead of one companywide CEO, Carlson what you’re doing is preserving a family and business narrative. appointed separate CEOs for each of its two remaining core But that can be a trap if you allow the family history and com- platforms. This gave each more autonomy to make them more pany history to become static.” nimble in addressing specific challenges for each industry, A key role as chair of the board, she says, is keeping her including confronting the shifting tastes and needs of their board, senior management and family shareholders in align- respective customers. ment — a collaborative approach that she says was reinforced at What hasn’t changed, she says, is the company’s mission — Kellogg. including her grandfather’s commitment to social responsibility. “What I hope comes out of my leadership is the courage to “When my grandfather founded the company, it was very change and innovate,” she says. “You can’t be afraid to reinvent.” closely tied to Minnesota and the local community,” she says. “Minnesota is a very civic-minded and philanthropic place, and my grandfather was one of the business leaders who believed in giving back.” k BY BOBBY CAINA CALVAN PHOTO BY JOE TRELEVEN

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58 CLUB NEWS 61 CLASS NOTES

IN FOCUS 62 SID LEVY RETURNS 65 DATA REBEL 69 ADVOCATE FOR CARE 74 ALUMNI BOOKSHELF

Leo Hermacinski ’92 and Jess Cross-Call ’02 on the summit of Rosablanche, Switzerland

KELLOGGMAGAZINE.COM 57 | ALUMNI WIRE | CLUB NEWS SEE WHAT YOUR LOCAL CLUBS ARE UP TO

The Kellogg Alumni Club of Chicago celebrates its 2015 Club of Excellence Award with Dean Sally Blount

Kellogg Executive many disciplines discuss their of the Family Enterprise Club On May 14, 2015, 75 KEWN mem- new books, as evidenced by and the Women’s Business As- bers and guests attended the 7th Women’s Network the recent lineup: David Axel- sociation, attended “Leadership Annual Wine Tasting/Epicurean/ (KEWN) rod, James Carville and Mary Lessons From the Top: A Fire- Networking Evening in the GE Matalin, Tim Gunn, Erick Larson, side Chat with Powerful Female Monogram Design Center space Dee Slaughter EMP-24 Hank Paulson, Cokie Roberts, Business Leaders,” a panel with at the Merchandise Mart. GE [email protected] Jack and Suzy Welch and Mi- Ann Drake ’84, CEO of DSC Monogram Executive Chef Jon chael Morell (as well as many Logistics, and Wendy Carl- Liddell prepared savory pairings KEWN has continued its part- others). son Nelson ’99, vice president for the wines offered at the Ar- nership with the Union League of operations, Carlson Hotels tisan Cellar. This annual event Club of Chicago for its Authors KEWN members have attended Worldwide. The panel was mod- is one of KEWN’s most popular Luncheon Program. Recently, many lectures and events to- erated by Linda Darragh, clini- and was thoroughly enjoyed by KEWN members and guests gether. On February 17, 2015, cal professor of entrepreneurial all. While everyone loved the were thrilled to hear a wide ar- 30 KEWN members and guests practice and executive director food and wine, networking was ray of prominent authors from attended a presentation by Kel- of the Kellogg Innovation and also a top priority. logg’s own Adam Waytz, asso- Entrepreneurship Initiative. Ms. ciate professor of management Drake and Ms. Nelson shared and organizations, on “Why with attendees their career Good People Do Bad Things progressions, how they created To read full versions (And What to Do About It).” their own successes, and the Philippines of club news, visit: challenges they face as female In April, 80 KEWN members leaders in male-dominated Luis Sixtus Esquivias kell.gg/kc-community and guests, including members industries. [email protected]

58 KELLOGG FALL/WINTER 2015 The Kellogg Alumni Club of the Philippines has held a va- IN FOCUS riety of events this past year. It jump-started 2015 with a market outlook by stock market guru Anton Periquet, chairman With Graditude, Kellogg Awards 2015 of Pacific Main Holdings Inc. The event was held at Wil- Each year prior to Reunion, Kellogg’s most dedicated volunteers and clubs are honored at the With low Root in Manila Polo Club. Gratitude, Kellogg Awards celebration and Alumni Club Leadership Summit. We applaud the recip- Alums and friends enjoyed ients of the 2015 Kellogg Alumni Club of Excellence, Kellogg Alumni Club Leadership and Kellogg hearing Mr. Periquet share his Alumni Club Leader Merit Awards for their outstanding service and commitment to Kellogg. insights and views about the 2015 market. The night was capped with the introduction Kellogg Alumni Club of Excellence Award of the club’s new president, Kellogg Alumni Club of Chicago Luis Sixtus Esquivias ’14. The Kellogg Alumni Club of Excellence Award is presented to an alumni club that has demonstrated strategic leadership and innovation in its approach to connecting Kellogg alumni to one another and On March 17, the club cele- back to the school. brated St. Patrick’s Day in the heart of Manila’s Central Busi- ness District in Makati. Alumni Kellogg Alumni Club Leadership Award and friends wore Kellogg Ahmed Elcott ’04, Kellogg Alumni Club of New York purple and St. Paddy’s green The Kellogg Alumni Club Leadership Award recognizes a club leader who has exhibited consistent while enjoying food, drinks and representation of the values of the Kellogg brand and the goals of the Kellogg School in building his conversation. or her alumni community. On May 20, the alumni club organized a night of cultural immer- Kellogg Alumni Club Leader Merit Award sion and educational insights at Sean Lofgren ’01, Kellogg Alumni Club of Dallas – Ft. Worth Alphaland Tower in Makati City. Kellogg Alumni Club Leader Merit Award recognizes a club leader who has made significant and Northwestern alumna Regina sustained contributions to the Kellogg community at large. Buenaventura ’13 delighted the crowd with her violin rendition of a number of pieces by re- nowned composers. After the performance, real estate expert and country head of Jones Lang LaSalle David Leechiu discussed cellence Award for fiscal year macro policy and the changing On July 19, 2015, Gerron Var- the outlook of the real estate in- 2015. KACC made great strides global economy on May 15 at tan ’67 (WCAS65) and his wife dustry in the Philippines and sur- in demonstrating strategic the historical Field Building. The Judy (SESP66) hosted a wel- rounding region. leadership and innovation in event provided unique access to come event for Kellogg interns its approach to connecting Kel- the former private apartments and 2015 graduates. The event The club hosted a send-off event logg alumni to one another and of Marshall Field IV, which are was designed for interns and at the Bowery in Fort Bonifacio back to the school. The club ac- rarely open to the public. new grads to get to know each for Kellogg’s admitted students complished this through: other and the Kellogg alumni on July 17. Alumni shared invalu- A lively group of more than leaders in the region (Club, Kel- able tips and insights on how to 1. Transformation of club 60 alumni, friends and family logg Alumni Council and Pete survive and make the best out operational excellence gathered for a fun-filled volun- Henderson Society). The Fun of their Northwestern University teer session to pack nutritional 2. Diverse professional de- in the Sun event was graciously and Kellogg School of Manage- food packages sent to children velopment opportunities hosted at the Vartan home in ment experiences. in over 70 countries around aligned with inspiring growth Atherton, California, and guests the world at Feed My Starving campaign enjoyed swimming, croquet, Children. bocce ball and volleyball, great 3. Innovative approach to food, beer, wine and valuable strengthen professional Chicago networking with engaged Kel- networking logg alumni leaders. More than Elizabeth Pattara EMP-78 4. Data-driven programming 60 interns, 2015 grads and [email protected] and engagement for San Francisco & alumni leaders attended. continuous growth Silicon Valley The Kellogg Alumni Club of Chicago (KACC) was honored Eighty members of KACC joined Gabriele Saure ’02 with the Alumni Club of Ex- Professor Jan Eberly to discuss [email protected]

KELLOGGMAGAZINE.COM 59 | ALUMNI WIRE |

Chicago-West requires. The Kellogg alumni Continuing KACNY’s recent Matthew Temple ’93 and fea- who attended were engrossed push to partner with lead- tured a lively discussion on us- Bill Liu ’97 by this event.” Professor Krae- ing business schools, the club ing LinkedIn both for keeping in [email protected] mer’s talk was held at Sikich co-sponsored a finance event touch with colleagues and for LLP in Naperville and was well with Columbia Business School general job searches and career On June 16, the Kellogg Alumni attended with more than 65 on family office investments at advancement. Subsequently, Club of Chicago-West wel- alumni, all of whom went home Northern Trust. Microsoft Co- the club hosted an interactive comed Professor Harry Krae- with copies of his new book. Founder Paul Allen and hedge presentation on Twitter hosted mer ’79 to an exciting forum All proceeds from the sale of fund legend Julian Robertson by two Kellogg alumni entre- for Kellogg alums on his new the book were donated to the spoke to the sold-out crowd preneurs, Gieriet Bowen ’92 book, Becoming the Best: Build One Acre Fund, an organization about how family offices invest and Kendra Olvany ’92. a World-Class Organization started by a Kellogg alum that in private equity, hedge funds, Through Values-Based Leader- carries out its values-based real estate and other alternative June’s Kellogg TG event was ship. Professor Kraemer spoke leadership in support of farm- investments. The panel also in- held at Diageo’s Fifth Avenue candidly about how individuals ers in Africa. Standard Mar- cluded David Albright of North- location and was hosted by Jo- need to be introspective and ket, a Kellogg-owned business, ern Trust’s Global Family Office, hannah Rogers ’10. The event use self-reflection, balance, co-sponsored the event with Nathan Troutman ’86, Matthew included opportunities to meet true self-confidence and gen- Sikich. Bender ’05 and was moderated with senior Diageo managers, uine humility to really become by Ahmed Elcott ’04. enjoy views of 5th Avenue and effective leaders. Professor enjoy cocktails created by Dia- Kraemer’s anecdotes and in- At another event, Harry Krae- geo’s mixologist. sights encouraged discussion, mer joined KACNY to discuss and his willingness to linger New York his new book, Becoming the The February and June dinner well after his presentation was Best, which showcases the series included various loca- greatly appreciated by all. Bill Ahmed Elcott ’04 and traits of today’s most effective tions in Manhattan, Brooklyn, Liu, chairman of the Kellogg Prateek Aneja ’09 leaders. The session included New Jersey and Connecticut. Alumni Club of Chicago-West, kacny@ an extensive Q&A, and the Each dinner was sold out and commented, “Professor Krae- kellogg.northwestern.edu crowd lingered well after the provided an ideal way to spend mer, with his extensive lead- event concluded. quality time and enjoy a good The Kellogg Alumni Club of New ership in private equity and meal with fellow alumni. Fi- York (KACNY) offered a variety experience teaching strategy In the spring, KACNY hosted nally, the monthly TG Fridays of thought leadership and social in the classroom, drove an en- two career events. Our LinkedIn drew a diverse segment of events to the New York alumni gaged and insightful discussion event was chaired by Kellogg‘s alumni and were an ideal start community during 2015. on what being effective truly Career Management Center’s to the weekend.

MS IN MANAGEMENT STUDIES FOR RECENT college graduates

The Kellogg MS in Management Studies program helps graduating college seniors build a business foundation that will change their career trajectory. In less than one year, students will learn to:

• Solve complex business problems • Evaluate and sell ideas • Lead teams • Succeed across a variety of industries and functions

LEARN MORE VISIT OUR WEBSITE: kell.gg/msms-ignite 60 KELLOGG FALL/WINTER 2015 CLASS NOTES SEE WHAT YOUR CLASSMATES HAVE BEEN UP TO

WHU-15 Japan reunion trip, left to right, Rodgrigo Lourenco, Marco Borghesi, Kjetil Molokken-Ostvold, Uta Hoffmann, Fumio Kita, Laddan Hashemian, Marc Kleemann, Stephan Herrel, Anida Omerbegovic, Alexander Wagner

horses dedicated to the zoo’s research a book and focus on tor of psychology program near 1975-FT unique teaching programs. board service. She serves on Philadelphia. The baby, Julia, the board of directors of several graduated Wellesley and is John Bluford started the Blu- ford Healthcare Leadership companies. She and her hus- considering grad school. Fran- Institute for undergraduate col- band found an apartment in Za- coise is a practicing LCSW and lege minority students. The pro- greb, Croatia, for the academic psychotherapist. Rick may be gram starts with a two-week- 1976-FT year, as he has a Fulbright retired from brokerage IT, but end, didactic, all-expenses-paid Scholarship to teach at the law is looking for the right business experience in Kansas City, with James K. Shaw has joined the school. She will return for board idea. a stipend of $1,200. Students law firm of Roetzel & Andress meetings and to research a are exposed to nationally recog- LPA as counsel. James works book she is writing about “a re- nized speakers and go on field from the firm’s Chicago office, luctant rebel.” trips to health care organiza- where he focuses his practice tions. Programs conclude with on federal taxation matters with 1980-FT a summer internship experience special emphasis on employee in the United States at a health benefits. Makoto Hara is very sorry to care industry-related job site. 1979-FT miss the 35th anniversary re- The program is very competi- union, while so happy to attend tive; students carry an average From Connecticut, Rick Jaffe her son’s commencement at the GPA of 3.5. Candidates typically and his wife, Francoise Jaffe University of Michigan, where come from HBCUs. 1978-FT ’88, report that their oldest, he received a PhD in engineer- Gregory, has graduated from ing. He is now a researcher at Judith Longmeyer has volun- After teaching at Harvard Busi- the University of Michigan Med- one of the Princeton labs. She teered at the Phoenix Zoo since ness School for several years, ical School. Their middle, Claire, sends her best wishes to friends 1994. She primarily works with Blythe McGarvie decided to is two of five years into a doc- from KSM.

KELLOGGMAGAZINE.COM 61 | ALUMNI WIRE |

David Spitulnik is pleased to report that he has just been pub- IN FOCUS lished in a new book, Know-How: Expertise, Experience, Execution, recently released by Shields Meneley Partners. His article, “Getting the Cross-Border Deal ‘Like meeting the president’ Done,” focuses on understand- Sidney Levy, Professor Emeritus of Marketing and Behavioral Sciences at Kellogg ing culture, both in the country and an innovator on the idea of branding, celebrated his 94th birthday by debating in which you are operating as marketing concepts with contemporaries and doctoral students. well as in your own company. His piece is one of a collection writ- ten by top business leaders from Sidney Levy has been challenging and changing the world’s ideas on marketing for more than 50 across the country. It is great to years. On May 29, the tradition continued in front of a lucky group of Kellogg doctoral students, fac- see that several of the other au- ulty and guests. thors also have connections to Levy, joined by longtime friends and Kellogg professors Philip Kotler and Louis Stern, cel- Kellogg and Northwestern, in- ebrated his 94th birthday by speaking to the group about the history of marketing and how it has cluding Harry Kraemer ’79, Da- evolved. vid Coolidge III, Robert Moore, According to Alice M. Tybout, Kellogg’s Harold T. Martin professor of marketing, there was Jim Reiman, Peter Wong, Don a fantastic, lively debate between Levy and Kotler, often considered a pioneer of marketing theory. Perkins and Dr. Daniel DeWitt. Levy’s discourse focused on how he believed branding is the central concept of marketing, Tybout said, while Kotler pontificated on how marketing itself is the central concept. This kind of debate is something that has been central to his growth in marketing over his career, Levy said. His thoughts are always developing, something interactions with others in the field helps - shape. 1982 FT Levy played a large role in developing brand-building at Kellogg beyond typical marketing After 16 years with ShoreBank, applications. Tybout, who has been on the Kellogg faculty with Levy, Kotler and Stern, said Levy’s Dan Broughton started a new speech took an “impressive, historical review of how the field has developed.” Tybout added, with a career working with T2, a Chi- laugh, that the evening was almost “like meeting the president” for the doctoral students. cago developer, and he’s hav- What does Levy think about being considered almost presidential? He said people always ask ing a great time. him for guidance (“That’s one of the things about being old,” Levy added), and he enjoys imparting one main piece of advice: always enjoy your work. Mark DaSilva is now living in “If you don’t enjoy your work, I think it’s a pity because you’re just wasting your life,” Levy said. Houston, Texas. He is director of marketing and product management at Westlake Chemical Building Products Group.

Steve Stirling travelled to Uganda in his new role as president and CEO of MAP In- Andy Beran just launched a have moved into a condo in ternational. MAP International 1984-FT new-model transportation Chicago’s South Loop. They en- is an Atlanta-based Christian service for senior citizens. His joy travel and recently returned Keith Babb and wife Aileen are global health organization that celebrating 37 years of wedded model fills an important need from a cruise on the Peruvian provides medicines, prevents bliss in 2015, living in Tennessee by providing door-to-door, Amazon. disease and promotes health close to Jack Daniels. Keith still subscription-based ride ser- in some of the world’s poorest Since joining Korn Ferry in Lon- scouts for the world’s largest vices and companionship for countries. don in May 2014, Kai Hammer- NCAA-approved network. Their those who don’t want to drive, ich had a hectic year. He moved three children are doing spec- shouldn’t drive or simply can’t Don Ullmann has retired from to Copenhagen on January 1, tacularly — the oldest is the drive anymore. This service, En- Wall Street and is now doing 2015, after spending 13 years in man responsible for the new voy America, started in Arizona some consulting work. He and London. He is happy to be back mobile app that will be used and will soon be nationwide. his wife, Susan Hanrahan Ull- in Denmark and with Jette. by the CTA and Metra to make mann, continue to reside in Bill Black is co-head of the In- Alexia, his 13 year-old, is thriv- commuting ticket purchases New Jersey, and they are happy vesco High Yield Municipal ing in London at the Steiner easier. The middle child is liv- that all three of their children Bond Fund in Chicago. His wife, School and visits often. Kai sees ing the dream in Tennessee. currently work nearby in New Sue, is a family physician within John Youngblood (Alexia’s The youngest is teaching and York City. They send best re- the Loyola University Health godfather) on a regular basis coaching in southeastern Penn- gards to all. System. Their son and daughter in London and hopes Alexia will sylvania, and her husband is the graduated from college in Bos- soon fulfill her dream of visiting head of real estate for Boscov’s ton, so as empty nesters they New York. department stores.

62 KELLOGG FALL/WINTER 2015 Lynnette Hinch has been with several military patrols. Back mused, “See that green stuff Reynolds Consumer Products home in Connecticut, he joined you are feeding to your horses? 1988-FT for five years. She is marketing his town’s planning and zoning You see weeds, I see superfood.” Scott Ableman is CMO at The director for Hefty disposable commission. He remains active He predicts that in five years Teaching Company, which pro- tableware and responsible for in several farmland preserva- kale will be on every restaurant duces and distributes The Great brand management and new tion and nutrition charities. menu in the country, right next Courses, college-level audio product development. She’s to salted caramel. and video courses. He and wife Mary Madick Morrow joined having fun with digital adver- Debbie, son Ethan and daugh- Gateway Health as vice presi- Catherine Morales, who re- tising, social media and spon- ter Hannah travelled to Lisbon, dent of strategic initiatives in cently moved to the Austin, soring the Chicago Cubs. Her where Scott racked up lots of January, which, after five years Texas, area from the D.C. area, two sons are in high school, steps on his Fitbit. and while time is flying by, her of near constant travel, brought travels frequently to San Fran- family is healthy and happy. her back home to Pittsburgh. cisco, and after attempts to Mariellen (Sullivan) Carpenter She’s enjoying time with fam- meet Karen Vangsgard Lith- and husband, Noble, are still Phelps Hoyt moved from Iowa ily, including daughter Maggie, gow, Bob Egan and others, living in the New York area. to New York in 2014. He is now who recently graduated from Murli Thirumale suggested Mariellen is working in resi- head of credit research and Duquesne University’s School a reunion. The Kellogg Bay dential real estate in New York strategy for GIC Private Limited of Law and swiftly found em- Area Class of ’84 Reunion was City and Lower Westchester for (Government of Singapore). ployment. She is happy to be held on June 27, 2015 and was Olshan Group LLC, and is al- with her son Ed, who is a junior hosted by Murli Thirumale and ways open to referrals. Noble is Lewis Hunt was offered an op- at Duquesne, husband Rodger Bob Egan at Murli’s house. working in commercial real es- portunity to retire from CSX and five rescue Great Pyrenees. Allen Weinberg, Joan Bolz tate as the president of capital that was too good to turn Cleary, Karl Mills and Peter markets for Americas at DTZ, a down. So, in January, he said In the fall, Michael Mandala, SJ, Grace also joined them. Every- global commercial real estate his goodbyes and moved on. was inaugurated president of one was in very good form, and company. She has four children. Now he is employed by the Verbum Dei High School in the they are planning another mini The oldest graduated from col- Coastal Region of the Gene- Watts community of Los An- reunion. lege and is working in NYC, the see and Wyoming, a holding geles. The “Verb” is one of 30 middle two are in college, and company that owns railroads college prep Cristo Rey Schools Candace Quinn (formerly the youngest is a freshman in in 43 states, Canada, Australia across the country for inner city Hulsebus-Fong) joined Profes- high school. and Europe. He gets to spend students. One hundred percent sional Research Consultants much of his time in Florida, of graduates are accepted to as its first-ever COO in early Gary Cohen spent three years South Carolina, North Carolina college. All students intern at 2014. PRC is a market research as president and CEO of Timex, and Tennessee working with corporations in an innovative firm dedicated to the health but he recently left the position customers. What’s not to like work-study program. The pro- care industry and committed to become CEO at Qualitor Au- about that? gram cuts the cost of educa- to assisting health-care orga- tomotive Inc. He’s based out of tion in half. Parents pay a slid- nizations focused on achieving Connecticut and often jets to After going to art school part- ing scale tuition, and financial excellence as a standard. She Florida and Ohio. time for six years, Alison Levy sponsors contribute the rest. moved to Omaha with husband Klein graduated from the Il- Visit the school’s website at Michael and has now enter- These days Steve Langer is at linois Institute of Art with a www.verbumdei.us tained all seven granddaugh- Sears Holdings, gaining expe- BFA in interior design. She’s ters with everything Omaha. rience in e-commerce product been running an interior design In March 2015, long-time development. Steve has en- business while going to school Baird associate Terry Maxwell joyed owning a piece of code, and plans to continue helping became the firm’s CFO. Terry rather than a cell phone as a her clients create their dream was at Baird from 1986 to 2006 product, and gets a real kick homes as she leaves academia and was head of investment 1987-FT out of seeing something worth behind. If anyone is thinking banking. He rejoined Baird last changing, making the change, about going back to school and year as director of corporate Glenn Sykes has returned to pressing “go,” and there it is wants to talk about it, give her development and strategic Chicago after 13 years working for the public to enjoy in two a call. She notes that going to investment following several abroad in Barcelona, Singapore minutes. He enjoys the instant school is such a great experi- years in academics. and London. He has a new role gratification, and hopefully, ence at her age. at Chicago Booth, heading up business. All is well with Karl O. Mills. He is the Evening MBA and Weekend John Kriz recently travelled aging gracefully and maintain- MBA programs, as well as sup- After battling a cancer growth on through Armenia and Georgia, ing a healthy sense of humor porting the faculty’s program his heart through many rounds including the Svaneti region, while puzzling life’s big ques- innovation initiatives. of chemo and surgery, Amy along Box Canyon and high in tions like, “How did kale become (Wahlert) Principi’s son, Nick, is the Caucasus, which is serviced so popular all of a sudden?” He now five months cancer free. by only one road. The food was assumes that a Kellogg market- abundant, with much local wine ing genius was behind kale’s Debbie Rechter is managing to accompany it. While hiking emergence from obscurity. He director, co-head U.S. Investor near borders, he came across imagines said Kellogg genius

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Sales, Fixed Income, Currencies Gerard was recently awarded ren, started her undergraduate and is growing rapidly. His wife, and Commodities at BMO Capi- tenure at Cal State Fullerton, program at Northwestern last Dixie Adams ’96, continues to tal Markets. She’s enjoying life in where he is currently vice chair fall; and so he tells son Patrick thrive at IBM, running the stra- Chicago with her husband, Fred, of the management depart- that he has to go to a service tegic outsourcing business in and three daughters. The twins ment and acting associate dean academy. Pat also ran into the NA Industrial Sector. are in college, and one child is in for graduate programs in the Dean Chamberlain ’92 at the high school. Mihaylo College of Business Army/Navy game last autumn. John Fanning is the new direc- and Economics. He teaches un- Pat said, “It was great to catch tor of college initiatives for As- dergraduate and MBA courses up with him to hear about his pire Public Schools, a 38-school in organizational behavior, family and how he’s growing charter management organiza- leadership, negotiation and Mischler Financial.” tion, and is enjoying this great 1990-PT organizational change, and his new opportunity. His position research focuses on workplace Carter Cast continues to teach will keep him in the San Fran- Leslie J. Rechan has joined the motivation and learning. He’s at Kellogg (entrepreneurship), cisco Bay area. He’d love to hear PROS (NYSE: PRO) board of also an adjunct professor in so if you find yourself wander- from you if you’re out his way. directors. Les is a resident of the MBA programs at Carne- ing around the Jacobs Center in Ottawa, Canada, and was most gie Mellon University and UC Evanston, he’d like you to look Joe Fisher is extremely pleased recently general manager of Irvine, where he is a visiting as- him up. He got together with that his stepson, Austin Wilson, IBM’s Business Analytics Divi- sociate professor during his Fall Doug Struckman last month is attending Kellogg as a mem- sion and formerly COO of Cog- 2015 sabbatical. He completed and he still looks like he could ber of the One-Year MBA Pro- nos. He’s held executive lead- his PhD in organizational be- play tight end for the Princ- gram Class of 2016. ership roles with Oracle, Siebel havior and theory at Carnegie eton Tigers. Carter suspects participated as a Systems, Cadence Design Sys- Mellon in 2008. He still does that Doug either eats like a Larry Gies panelist at a Kellogg event. He tems and Onyx Software. He occasional consulting projects supermodel or suffers from a has built a $5 billion industrial currently serves on the boards and is an advisor to several or- tapeworm. business from scratch since of Halogen Software and Cog- ganizations. He and his family graduation with Madison Capi- nitive Scale. are active members of Irvine Riff Coven notes that life seems tal and now Madison Industries. Presbyterian Church. He regu- to be all about work, father- larly enjoys surf sessions before hood and little else. His com- Gary Ger recently welcomed a work in Newport Beach. pany, PaceControls, is working to close its B-round cap raise, new baby into his family. After more than four years as which includes a major strate- 1991-FT While Ken Graves loved his CMO at Jaspersoft, Jim Bell’s gic investor. At the same time, eight-plus years in Tokyo, where company was acquired by his company is gearing up for Kristin Grundmann, along with he was partner and Japan prac- TIBCO Software in April 2014. massive growth, which means her husband and colleagues at tice head for LEK Consulting, he He is now having a blast as little time off. He took his family Grundmann Consulting, are sup- transferred back to the United CMO at Glint, a startup soft- to Evanston for three weeks — porting the professional careers States this spring. He’s back ware company focused on where he worked remotely — of top athletes as they prepare in his old stamping grounds as measuring and improving em- and took a few days off to visit for the 2016 Olympics in Rio. part of LEK’s Chicago office and ployee engagement. The com- family and escape a chunk of Grundmann Consulting was re- looks forward to reconnecting pany launched in February the muggy Maryland summer. cently awarded the Solidarity with classmates in the area. Coaching Award by the Euro- 2015 and released a mobile app After 10 great years with Ex- pean Mentoring and Coaching in July. On the home front, his Jeffrey Gilbert thinks he might perian, Rick Erwin moved from Council. Kristin is having a great wife, Angela Comstock, is do- be the oldest first-time parent Chicago to the Bay Area to run time giving back to society and ing part-time finance work for in the class. He and his wife wel- the much larger global data is looking into attending the a couple of clients and contin- comed daughter Shannon Kate and analytics business for Acx- games in Rio. ues her school and community into the world in October 2014. iom. He sees his new role as a work. Their kids, Lauren (17) He reports that he has received chance to expand his influence and Jack (15), are enjoying high a full night’s sleep, and he and in the rapidly growing industry school as a senior and fresh- Jenilyn couldn’t be happier. man, respectively. Life, he re- of data-driven advertising, but he does miss his great Experian ports, is great. Leo Hermacinski achieved a 1992-FT colleagues (including Kellogg long-held ambition when he alum Rick Gallagher ’92). He Gerard Beenen’s four kids are Pat Burns reunited with Bill skied the Haute Route from loves being at the epicenter of doing well and visited England Lakenan (now with KPMG). Bill Chamonix to Zermatt in April marketing innovation. He works and Scotland last summer. assists Pat with strategy and 2015. He joined a party of six, on making it possible for all execution at Johnson Controls which, by chance, included NU ad media to be targeted and Inc., where Pat is vice president 2002 grad Jess Cross-Call, so measured at the individual or corporate strategy. Pat notes Northwestern was well repre- household level, while protect- that it is cool to “literally run sented. The weather was un- ing consumer privacy. Acxiom in to him in the hallways now believably good, and they had will do nearly $1 billion this year Submit class notes at and then.” Pat’s daughter, Lau- snow for the six-day trip. He’s bit.ly/submitnote

64 KELLOGG FALL/WINTER 2015 now back at work planning to life with an empty nest. she launched in 2013, Office tary benefits division, he is similar escapades for next year. Oxygen, is really starting to responsible for providing lead- Mark Jicka recently left his post grow. She’s excited to work on ership and management of the In August 2014, after six years as managing director at CIBC something new, and she’s even business, including strategic in Southern California, Kevin World Markets in New York and more excited to be developing planning, sales growth, market Hykes moved his family of six is now an independent investor. a product line that “breathes development, producer rela- back home to Minnesota, just new life into the workplace” tions and operations. in time for the start of high Lisa Krutzel Katzman lives in and makes work feel a little less school. The decision was tough northern Virginia with her hus- like “work.” Her two boys, 11 and Dmitry Paramonov started a for the family, but they could band, Evan, and daughter Caro- 13, are full of laughter, sports, new position in Moscow as the not resist Minnesota’s unique line, 15. Lisa leads marketing ef- school and inappropriate lan- managing director of Abbott combination of California-like forts at Optisave, a health care guage. Her husband, Bill, is hard Labs Diagnostics. His wife, Mi- taxes and Polar Vortex weather. IT consulting firm. She travels at work on his next book. nako, and daughter, Sofia, are He is still in the medical de- extensively with her family for enjoying life in the bustling vice space and is currently Caroline’s skating competi- Chris Martin, president of Com- metropolis, where Minako is ex- CEO of an early-stage venture, tions. Son David, 18, is a fresh- bined Insurance’s worksite di- hibiting her artwork. Sofia is a Metavention, focused on type man at Bates College, where vision, has been inducted into sophomore at the Anglo-Ameri- 2 diabetes. He also moonlights he plays hockey and studies the Workplace Benefits Asso- can School of Moscow. Son Den- as an operating partner for chemistry and economics. She ciation’s Worksite Marketing nis just wrapped up his sopho- Versant, a Bay Area venture enjoyed exploring Maine this Hall of Fame. Each year, induct- more year at Parsons School of capital firm. His son is friends past summer. ees are chosen by their peers, Design in New York City. with Lana (Etherington) Slavitt based on an individual’s career ’92’s son, so he sees her rela- Sue Doctoroff Landay is achievements and contribu- 2014 was a year of building tively often at school. She lives pleased to report that after an tions to the voluntary benefits stuff forSteve Rappaport. He nearby in Edina, Minnesota, anxious battle with breast can- industry. Chris came to Com- finished a reconstruction of his where they’ve resettled. Bill cer, she is back to her healthy bined Insurance in 2011 and, as company’s headquarters and Sharpe ’92 lives nearby and re- self. Her company, Trainers president of Worksite Solutions, built and furnished a new flat ports that his kids are now off Warehouse, continues to run the Glenview, Illinois-based in the Austrian Alps. He’s really to college. They are adjusting strong, and the new brand company’s workplace volun- happy with the results and even

IN FOCUS

Data rebel Tamara Gaffney ’97 turns numbers into narratives

What Tamara Gaffney finds so rewarding about digging through deeper into data over recent years has allowed her to make “mar- big data is that to develop a hypothesis and gain great insight, keting the most valuable role,” on a whole new level, for Adobe one doesn’t always have to start at the top. “Non-conformist and Systems. non-linear thinkers are rewarded with greater insight in the world The accolades don’t stop with Fortune: In February of 2015, of big data,” she says. Gaffney was named to theDataIQ Big Data 100 “power list” in And a non-linear thinker she is. the U.K. Having spent her career helping to define the role of data As the Principal Analyst at Adobe Systems, Inc., Gaffney was programs and meaningful outcomes, she is proud to discover, named one of the top 20 Big Data All Stars in 2014 by Fortune analyze and deliver the information in a useful way. “I am able to magazine, a recognition that emphasizes a successful three-year quickly see patterns or surprising insights from within an analy- streak using a predictive model to analyze eCommerce holiday sis and make the leap from insight to storyteller,” she says. “I then spending. That model now includes over 10 countries and has take a stand on what the data means in very simple and easy to been within 1 percent accurate each year. understand terminology. Big data shouldn’t seem complicated to Having come to big data “quite by accident,” Gaffney still others when presented correctly.” credits her early years in the advertising industry for grounding Gaffney works to not get too caught up in accuracy. Instead, her entire career. In advertising, she “learned how to analyze she focuses on the “fine balancing act between speed, flexibility media publications for major product launches,” and digging and accuracy,” like a true non-conformist analyst.

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1 Rich Family Portrait 2014, from left to right: Nolan, Haley, Nathan, Kelley ’95 and Kris 2 Mike Wien ’75 speaking about his new book, The Specific Edge 3 John Welsch, Greg Doman, Phil DeSantis, Tom Price, Keith Brown, Ross Posner, Joel Flatt (all ’92), en route to annual golf trip 4 Rachael (Lester) ’05, Michael & new baby Austin Wright 5 John Bye ’03 and Chris Kachinsky-Bye on top of Rocky Mountain National Park during their annual IronMan training week in Colorado 6 Jeffrey Gilbert ’92 and daughter Shannon Kate 7 Kellogg Alumni Club of the Philippines prepares admitted students for their studies at Kellogg 8 Bonnie Simpson Mason ’13, MD, recently received the 2015 American Academy of Orthopaedic Surgeons Diversity Award 9 From left to right: Dr. Jill Biden, wife of U.S. Vice President Joe Biden, Karl D. Safft ’93 and Suzan LeVine, the United States Ambassador to Switzerland during a recent trip to Switzerland 10 Kathryn Zwack ’95 and family at Arches National Park, Utah 11 Bill Black ’84 with a trout he caught in the Peruvian Amazon 12 Trish Lambrecht ’98, Mike Shelton ’98 and Julie Shelton 13 Evan Sharp ’12 and Tarra Thomas ’13 wed in March of 2015 14 Brad Johnson ’93 and son Randall at Philmont High Adventure Base in June 2015 15 Daniel Kamerling ’11 and Kristin Jones ’11 16 Blythe McGarvie ’78 at the Botanical Gardens in Zagreb, Croatia 17 Lewis Hunt ’84... not a work day 18 Lauren Washington ’11, co-founder and CEO of KeepUp, wins $250,000 at the 43North business-plan competition in October 2014 19 Mariellen Sullivan Carpenter ’88 and Noble Carpenter ’88 skiing in Val Thoren’s, France in February 2015 20 Ian Lacy ’02 with Michael, Benjamin and Abigail Lacy 21 Emily LeMaster O’Brien ’06 with her newest additions 22 G-Force members from left to right: Karthik Chandrasekaran, Ryan Bouchard, Andy Maus, Bridget Calendo-Spaeth, Masoud Loghmani, Brad Riley (all EMP-85)

Submit class notes at bit.ly/submitnote

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happier to be finished with Cleantech Incubator, recently After nearly 13 years in D.C., In August 2014, Kathyrn Zwack construction so he can start named one of the world’s top Emily (Malatesta) Kelton is became director of media and skiing. He also enjoyed a visit ten university-associated incu- headed to Colorado. She, hus- marketing for Women’s Ski by Eva and Riff Coven ’92 and bators. He is also a co-founder band Steve and 4-year-old Jumping USA, the non-profit family over the summer. Their of The Early X Foundation, twin boys arrived in Boulder organization that funds and daughter is a few years older which helps companies and at the beginning of August. promotes our national Olympic than Steve’s eldest son, Benja- government research labs un- She is particularly interested and development teams. In ad- min, who started Montessori in lock innovation and commer- in the startup/social enterprise dition, she does marketing con- 2014. His brother, Joshua, will cialize underutilized intellectual community in Boulder and is sulting work for San Francisco join him this autumn. property. open to business development, Bay Area high-tech companies fudraising and leadership roles (currently SanDisk) from her Ron Squarer, CEO of the Boul- Gary Zentner bought a house for companies, nonprofits and home in Park City, Utah. She der, Colorado-based Array in Palm Beach Gardens, Flor- universities. She would love to thinks the town is a great place BioPharma (NYSE: ARRY), was ida, after living in apartments connect with any Kellogg folks to raise her three children, ages recently featured in an article and condos his whole life. His in the area and can be reached 14, 10, and 7. She and her hus- about Array’s regaining world- kid gets more room to run at [email protected]. band, Brian, are enjoying the wide rights to binimetinib, an around, his wife gets to shape amazing mountain biking, ski- innovative late-stage oncology the living space and he finally In Karl D. Safft’s function as ing, CrossFit, and volunteer/ product. He is pleased to report can grill without breaking some president of the Swiss Fulbright service opportunities there. that he and his colleagues were local ordinance or condo by- Alumni Association, he had the able to avoid circling the wag- law. His recent passion project privilege to discuss aspects of ons in a vain attempt to defend is with John Martin ’95. They the Swiss education system the value of their drug after los- have negotiated a book option with Dr. Jill Biden, wife of U.S. ing a big pharma development deal with Pulitzer Prize-win- Vice President Joe Biden. Dr. - partner. ning author Ron Suskind for Biden recently visited Switzer- 1996 FT his New York Times best-seller, land to learn more about their Bob Raidt has been named George Thornton is still burn- A Hope in the Unseen. They vocational training program. global president of Arc, the ing up the track at Ford. He, his recruited Mike Tollin of Tollin/ Leo Burnett Group’s brand ac- wife and two girls are still en- Robbins and Mandalay Enter- Steve Schultz founded Move- tivation agency. Bob will remain joying China, but now in Shang- tainment Group to be their ad- able Feast Mobile Media. The based in Chicago. hai. “Leadfoot” reports that visor through the development app is based on the idea that Ford is growing massively in process. They are currently re- there’s a whole new storytelling Asia, but the business climate cruiting charitable and socially ecosystem that can grow up is volatile. His upcoming adven- conscious parties to help fund around walking tours, but never ture is a trip through Tibet on a the development phase so they could before mobile technol- - Chinese replica of a 1938 BMW can get their movie made. He ogy. Moveable Feast isn’t about 1997 PT sidecar. encourages you to read the points on a map; it’s about how Phillip D. Joseph Jr. was re- book and let him know what points on a map can come to- cently appointed CFO at Spirit enjoyed a Whole Jim Winett you think. gether and tell a story. Instead Realty Capital Inc., a real estate Life Challenge virtually with of focusing on points on a map, investment trust that invests classmates Bruce Spear ’12, Moveable Feast focuses on in single-tenant, operationally and Drew Koecher ’12 Steve routes and stories. essential real estate. In his new — it was a great Rappaport ’12 capacity, Phillip oversees all health and fitness challenge! - aspects of finance, corporate Jim’s consulting business is 1993 FT reporting, tax and investor re- going well. In 2014, he bought Alkistis Economou and hus- lations. Formerly, Phillip spent and sold an interest in a mobile band Konstantinos Vossos ’93 - more than 13 years at Prologis, healthcare services company. 1995 FT moved to Madrid, Spain, with most recently as managing di- He’s active in a new startup, their two children and really en- Kelly Rich reports that all is rector and global treasurer. raising capital in a self-tracking joy living there. Alkistis would well in the Rich household. Her big data analytics and recom- love for anyone visiting Madrid oldest son, Nathan, is a high Ed Rafacz just launched Gemi- mendation software engine for to please send her a note. She school senior, Haley is a fresh- niGuide.com, which is designed health and fitness, and recently would love to get together af- man and Nolan is in 8th grade. for the Adler Planetarium’s became an executive-in-resi- ter all these years. Kris is a director at Honeywell. Gemini spacecraft. The Adler’s dence mentoring early-stage In 2013, Kelly re-entered the exhibit about going to the moon companies at the Los Angeles Brad Johnson is back at Owens professional world after a six- features artifacts from Jim Corning where he is responsi- year career break. She is now a Lovell. This Gemini spacecraft is ble for roofing contractor rela- category brand licensing Man- the actual ship Jim Lovell spent tionships. He and son Randall ager with Whirlpool Corpora- four days in with Buzz Aldrin. hiked more than 80 miles in 12 tion. She really enjoys her job, days with a crew at Philmont and the fact that her commute Submit class notes at Scout Ranch in New Mexico. is five minutes doesn’t hurt. bit.ly/submitnote

68 KELLOGG FALL/WINTER 2015 IN FOCUS

A tireless advocate With an MD, a JD and an MBA, Dr. June McKoy ’10 plans on changing elderly care in Chicago

As a teacher, physician, advocate, researcher, and a community MBA from Kellogg. leader, Dr. June McKoy will stop at nothing to create a better life She says the reason is simple: “Kellogg isn’t your mother’s for Chicago’s elderly population. She advocates, researches, prac- business school.” tices medicine, and passes the knowledge she’s gained onto the She was drawn to Kellogg’s emphasis on putting theory into medical students she teaches. In this way, she’s creating a gener- practice; she sees negotiation, marketing, and management as the ation of doctors that can carry on her work. most important skills she’s learned. She couldn’t have predicted her path. She grew up in Jamaica “Every doctor should have to go to business school,” she says. and lived in England, where her mother taught her to leave the “Doctors aren’t taught to enter the business of medicine, and med- world better than she found it, and being from what she described ical school training is insulated. It lacks real world application.” as “a third world country,” she thought it would be easy. So she left As Geriatric Medicine Program Director at the Northwestern home to attend medical school in the United States. University Feinberg School of Medicine, she slides Kellogg les- Caring for the elderly found a place in McKoy early in her sons into teaching all the time. She has kept all of the assignments medical career, as she saw the elderly consistently pushed aside and readings she has from her Kellogg days. or given the minimum treatment required. She was moved by the And, per her mother’s wishes, she’s done more than her share loneliness, lack of compassion and thoughtlessness experienced to leave the world better than she found it. Most recently, she by this population and dedicated herself to giving them a voice. co-founded SOAR — Senior Oncology Outcomes, Advocacy, and In medical school, she needed to know why so many people Research Program — a Robert H. Lurie Comprehensive Cancer were sick in the first place, so she earned a master’s degree with Center program geared toward people over 65, with a cancer sur- delta omega honors in public health. That’s when she found she vivorship framework tailored for older individuals. needed to better understand American laws, so she earned a law She is tirelessly focused on improving the quality of life and degree with additional certifications in Elder Law and Health overall health of seniors. To McKoy, this is about human rights. Law, and a LLM with Honors from Northwestern Law. That commitment and humanitarianism was recently rewarded And then she really got down to business. When she started when she received the Martin Luther King, Jr. Humanitarian getting National Institute of Health grants, she hired a research Award from Northwestern Medicine. team, but found she didn’t know how to run a small business. She And she says she couldn’t have done it without business needed to understand marketing and management, learn how to school. fund her projects, and develop a business savvy. So she earned an

and enjoyed dinner with Kevin he is developing new product in- on the valuation of intellectual 1998-FT Hastings ’98 in D.C., in addition novation services (crowd inven- property and intangible assets, to a beer or three with all the tion + rapid prototyping lab). His with a focus on patent portfo- Jason Spievak reports that his son Ben qualified for Junior usual Kellogg San Francisco family is really enjoying Nashville lios, for business transactions Olympics in water polo last suspects. and he’s happy to have made the that include licensing and sales year, and is hoping Ben’s sis- city his new home. transactions and mergers and ter Chloe will join him on the acquisitions. Robert teaches and J.O. team this year. Jason’s presents about IP valuation and company, Invoca, was named portfolio assessments at sev- to the 2014 Inc. 500 list as the 1999-FT eral law schools, including the 32nd fastest-growing software 2000-FT Northwestern University School company in the United States. After co-founding a software of Law, and is a speaker and in- This year, Jason went to Croatia startup and then running his Robert Goldman has been structor at Licensing Executives own business consultancy, promoted to vice president Society (LES) workshops and with the Michael Xenakis ’98 Erik is now an executive at a at Charles River Associates, a conferences. crew, visited Shawn Luetch- Carlson midsize marketing agency where leading consulting firm focused ens ’98 and friends in London

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Debbie Roever and Vincent Ro- Lucas are excited to have baby 2000-PT 2003-FT ever celebrated the birth of their sister to “love.” daughter, Claire Isabel Kathleen Al Kamienski, PhD, Professor Paolo Cuomo helped lead the Michael Wright and Rachael of Finance and Economics at setup of a new Lloyd’s of Lon- Roever, on December 30, 2014. Lester happily welcomed the North Park University Chicago, don insurance business and birth of Austin Jacob on March presented at International Days is now COO of Charles Taylor 10, 2015, in their new home at Arteveldehogeschool in Gent, Managing Agency. Give him a in Burlingame, California. AJ Belgium. His research topics in- shout if you’re passing through weighed 8 pounds and was 20 cluded economic freedom and London. - 2003 PT inches long. Rachael recently quality of life: global evidence took on a new role as vice and comparisons; and multisec- Denise Lazo is excited to report Brian Dolk completed his JD at mresident, marketing at Bruin tor convergence: lessons shared that she recently became co- The John Marshall Law School in Biometrics. Michael works for across for-profit, nonprofit and owner of Intense Peru (www. Chicago. He also earned a Mas- Forward Management, where governmental organizations. intenseperu.com), an online ter of Laws (LLM) in information travel and tour operator in Peru technology and privacy at The he runs the global infrastructure and Bolivia. So, for those of John Marshall Law School. fund. you who’ve been itching to visit Karianne Gomez and her hus- Lima, Machu Picchu, the Ama- Lisa Jericho left the corporate band, Joe, are happy to an- zon or Lake Titicaca, you now world for a new role at the Chi- - nounce that Abigail Rose Go- 2002 FT have a friend who can help. She cago-based not-for-profit Feed- ing America. Feeding America’s mez was born on September 2, On June 10, 2015, Ian Lacy and looks forward to seeing some of mission is to feed America’s 2014. They are simply thrilled wife Stacey were blessed with you in Peru in the future. hungry through a nationwide to be parents and are enjoying the arrival of Abigail Maitland network of member food banks time with their daughter. Lacy, who arrived at 8:44 p.m. After six years heading corpo- and engage the country in the in the Parkway East Hospital in rate finance at Azul Brazilian fight to end hunger. Lisa’s role is Singapore. Stacey was surpris- Airlines, Alex Malfitani is now senior vice president of informa- ingly well after more than 28 responsible for TudoAzul, the tion technology. hours in labor and achieving company’s loyalty program. This her third, all-natural drug-free is a fresh opportunity for him to 2006-FT step outside his finance com- Chris Long was named presi- birth! Ian couldn’t be prouder to dent & CEO of Cappex.com. Eric and Emily LeMaster O’Brien welcome a little princess to the fort zone and put that Kellogg marketing degree to good use. welcomed Evanston Chapman clan. With children now born in O’Brien on November 30, 2014. Hong Kong, Shanghai and Sin- Alex was also part of the team that negotiated a strategic part- Chap joins big brother Ellis (4) gapore, Asia will always hold and sister Elizabeth “Belle” (2), special memories for the family. nership with United Airlines, his previous employer. 2004-PT and is looking forward to some play dates in his namesake city After five years in Mexico, After 5 years as CEO of Vini- next summer, during mom’s 10- Aaron Martin traded continents maya Software, a Vora Ventures year reunion. The O’Briens are and is enjoying life in Amster- Company, John Hutchinson still in Atlanta, where Eric is a 2003-PT dam with his single-speed bike was recently promoted to Head partner at Jackson Spalding, a and pedal brakes. Look him up of Corporate Development for marketing and communications John Bye was promoted to gen- if you pass through. the parent company, Vora Ven- firm, and Emily joined Irban eral manager of Campbell Alli- tures, and will take a seat on Group, a social/digital market- ance Learning Solutions (CALS), David Nunez was promoted the Board of Directors of Vin- ing boutique, after working for an inVentiv Health company. to partner and managing di- imaya. In his new role, he will seven years at Coca-Cola. He competed in Ironman Can- rector at Investar Financial, a lead strategic initiatives across ada in late July before heading private-equity firm with $500 the Vora Ventures portfolio of to Austria for the Ironman 70.3 million in assets under man- companies, including acquisi- World Championships. John agement, based in Dallas. It tions, investments, divestitures, also founded MAPSO Relent- has been three years since he and commercialization of new less Forward Motion (RFM), a 2008-FT decided to move with his family technologies. charitable organization created from Madrid to Dallas. His wife Last harvest, Aline Baly joined in partnership with Challenged and two kids are very happy Bordeaux’s Baron Philippe de Athletes Foundation. living in the United States and Rothschild SA’s team. In addi- also appreciate the chance to tion to continuing her role at her visit family and friends in Spain 2005-FT family’s estate, Château Coutet twice a year. He says everything (in Sauternes), as the director is big in Texas, including their Scott and Carla Benigni are of marketing, Aline also now home, which can accommodate thrilled to announce the birth oversees the marketing strategy Kellogg friends. of Stella Marie, born April 10th, for the First Classified Growth Submit class notes at 2015. Big brothers Henry and Château Mouton Rothschild and bit.ly/submitnote

70 KELLOGG FALL/WINTER 2015 the Classified Growths Chateau Clerc Milon and Château d’Ar- 2012-FT EMP-42 EMP-4 mailhac, as well as a beautiful Evan Sharp and Tarra Thomas Earl M. Furfine, CPA, PMP, CITP John Baxter has been ap- estate in the south of France — ’13 were married on March 21, was named president and COO pointed adjunct professional Domaine de Baron’arques. 2015 in Dallas, Texas. They are of 5AM Solutions Inc., a Rock- specialist with the Mendoza both management consultants ville, Maryland-based life sci- College of Business at the Uni- currently living in Chicago. ence and biotechnology soft- versity of Notre Dame, where ware firm providing clinical trial he will teach courses on new information systems, dynamic business enterprise and stra- 2009-PT assay design and implementa- tegic management. John, his tion, biological sample track- wife, Ginny, and their two chil- Sarah Royalty Tredo, her hus- 2013-FT ing and genomic sequencing dren, Pete and Cathy, reside in band, Dave, and their 4-year-old software, and custom software western Michigan. daughter, Vienna, welcomed Colgate Smith lives in New solutions to the health care and Adelaide Belle Tredo to the York City and works at Van science industries. Learn more family on October 30, 2014. For Eck Global on the institutional at www.5amsolutions.com. her first Halloween, Adelaide business development team. dressed up as a baby carrot. He remains very close with the EMP-18 After her initial embarrassment, Kellogg group in New York. His Adelaide is doing great. frequent social gatherings typ- Terry R. Hendrickson has been ically include sharing an occa- EMP-48 elected president of the Union sional whiskey, pitching a new League Boys & Girls Clubs, one business idea and aggressively Raj Sultanian has joined Pacific of the largest Boys & Girls Club planning group travel. Alternative Asset Management organizations in the country, 2011-FT Company in Newport Beach, serving more than 12,500 at- California, as legal counsel, in- risk youth on Chicago’s Near Kristin Jones and Daniel Ka- vestment operations. West Side. Hendrickson is vice merling ’11, both MMM gradu- president of business devel- ates, were married on April 18 EMP-24 opment for the Midwest at 2015, in St. Louis, surrounded Chicago Title Insurance Co.’s by their friends from Kellogg. Bill Graham has accepted a National Commercial Services Kristin and Dan currently live new position as principal engi- 2012-FT Operation. Hendrickson and his in Los Angeles, where they neer at Compliance Partners. wife, Donna, have been married are both consulting as prod- Bill works within the Environ- Bo Olafsson is now chief fi- for 41 years. They live in Park uct managers with BCG Digital mental Compliance and Man- nancial officer of Meniga, the Ridge and have two daughters. Ventures and Pivotal Labs, re- agement Systems at Compli- European market leader in per- spectively, to help companies ance Partners, addressing air, sonal financial management for create digital disruption. Offline water, waste and other require- retail banks and other financial activities include biking along ments, as well as compliance institutions, with 20 implemen- the beach, trying new restau- auditing and litigation support. tations across 14 different mar- EMP-22 rants and the occasional board kets, including several top-tier game night. retail banks, and reaching about The American Board of Medical 15 million online banking users. Specialties has appointed Rich Lauren Washington is the co- Waters as the organization’s founder and CEO of KeepUp, a new vice president of market- social media management app EMP-38 ing and communications. Wa- that lets you cut through the Trish Lambrecht raised more ters will lead the development clutter without missing out on than $4,200 for Bike MS to aid and implementation of ABMS’s important life events. Lauren 2014-PT the fight against multiple scle- strategic communications ini- launched the public beta on rosis. She says the weather was Jana Felbinger helped treat tiatives. He also will manage the the Apple Store May 27, 2015. fantastic this year and, despite more than 600 patients in rural organization’s varied and inte- KeepUp is an inaugural winner Chicago’s rainy spring and early Cameroon as part of a medical grated marketing and commu- of 43North, the world’s largest summer, she experienced pleas- mission organized by Fuankem nications products and services. business idea competition, re- ant temperatures and sunny Lekeanyi Memorial Medical ceiving $250,000 and incubator skies. Her cycling team raised Clinic. FLMMC is a nonprofit or- space for a year. over $31,000. She thanks EMP- ganization working to improve 38 for coming through with her the health care services in the matching donation. region. EMP-24 Eileen Clune would like to ask those who attended EMP-24’s most recent reunion and had

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the chance to spend time with occupational health services tributions to the district energy duct research for her clients Lou Kacyn to remember that provided to community-based and combined heat and power around the world, in person, on- special time and cherish the employers. industry. line and via mobile. Rebecca is a memories shared with him be- Google Glass Explorer working fore he was taken entirely too Tim Wulf enjoys family time in on new research methodologies soon. The thoughts and prayers Wisconsin when he’s not travel- and potential industry guide- of all his classmates are with his ing around the country working lines for the device. family during this time. as vice president of operations EMP-52 for LABSCO, a privately held Shyam Kambeyanda moved Michael Silverman started Duo distributions company focusing Tim Augustine is currently an to Minneapolis from China last Consulting 15 years ago, creat- on laboratory supplies. owner and corporate officer of year. Shyam is the president of ing digital marketing platforms Atwell LLC, a national consult- the Americas for Eaton’s hy- and custom Drupal applica- ing, engineering and construc- draulics business. He has also tions. He and his wife, Arlene, tion services firm with hundreds been busy building a family look at their kids — Ben, 14, of professionals across the with his wife, Agueda, and kids and Noah, 17 — and being at EMP-42 country supporting a diverse Nikhil (8) and Kiara (5), who Kellogg 21 years ago seems like range of industries including have settled in well in Minne- another time. Earl Furfine and Laura Dona- real estate and land develop- sota and are becoming Nordic hue were engaged on May 18, ment, power and energy, oil and with their accents and outdoor 2014. Earl proposed to Laura gas, manufacturing, industrial, activities a day after his third full Iron- and mining. Tim’s third book, man 140.6 race in Houston. He How Hard Are You Knocking? Mary Olson-Menzel and Rich EMP-38 finished with tremendous and Landing a Job in a Rebounding Sypniewski EMP-52 have continuous support from Laura. Economy, was recognized in the teamed up in a business part- Trish Lambrecht wants to Earl and Laura look forward to “Top 100 Best Career Books of nership. Mary is a managing thank her EMP-38 classmates a life of happiness and of mara- All Time” by Careers magazine. director at Sagin Consulting, who contributed to the Na- thoning together. He is also the co-founder of Suc- the company founded by Rich tional MS Society this year. She ceed Faster LLC, a career accel- Sypniewski five years ago. Mary is grateful for her own health eration firm focused on building runs the New York office and and the generosity of her Kel- and mentoring a community of leads the MVP Executive Search logg classmates who help sup- motivated young leaders (www. & Development division nation- port an organization that, in EMP-45 succeedfaster.com). He lives in ally. Mary founded MVP Exec- turn, supports one of their own. the Ann Arbor, Michigan, area utive Search & Development Daniel Rice’s new book, West with his wife and three children. in 2012 and then joined Sagin Point Leadership: Profiles of with more than 20 years of ex- Courage, received three Ben- Richard Berg is the co-founder perience in both the corporate jamin Franklin Awards for Best of Performance Trust, which world and consulting practices. EMP-39 Biography, Best Gift Book and celebrated its 20th anniversary Mary specializes in senior-level Best First Book from the Inde- in 2014. recruitment and career coach- Rick Schneider is the new ex- pendent Book Publishers As- ing across various industries. ecutive director of occupa- sociation. The West Point Class John Jimenez and his wife She is responsible for recruit- tional health services for Fro- of 2014 presented a copy of the Shannon have been living in ing and coaching CEOs, CMOs, edert & the Medical College of book to the president of the the United Kingdom for nine CROs, COOs, CFOs, publishers, Wisconsin health care network. United States as a gift at the years now. He is still working GMs and VP- and director-level In this role, he will lead strategy class graduation in May. for BP, currently as chief of staff executives across all functions development and execution of and VP, HR strategy and plan- on a national level: www.sagin- ning. For the past year, he has llc.com. On a personal level, she been on temporary assignment now lives in Larchmont, New commuting to Mumbai, India, York, with husband Dan, two - supporting BP’s joint venture stepkids, Samantha (15) and EMP 48 partner, Reliance. His kids are Connor (13), and son Christo- Tell the Stephen K. Swinson, president growing up fast: Zach is a se- pher (5). She is involved in sev- and CEO of Houston-based nior at George Mason University, eral charities in the area and has Kellogg community Thermal Energy Corp., a Texas Jake is a sophomore at Elon founded an event called Yoga your latest news* Medical Center institution, re- University and Sam is a junior at for a Cure, a program that raises ceived the International District ACS Cobham International. money to fund research for the *feel free to brag a bit — Energy Association’s Norman prevention and cure of breast Rebecca Kuchar joined Sundial you’ve earned it R. Taylor award at the associa- cancer. tion’s 106th Annual Conference Market Research of San Rafael, and Trade Show in Boston. The California, as senior director, Mahmood Qadri is the director Submit class notes at award recognizes the recipient’s qualitative insights. Based in of technology for the wealth bit.ly/submitnote lifetime achievements and con- Chicago, she continues to con- business at BMO Harris.

72 KELLOGG FALL/WINTER 2015 Ron Wiltbank is the CFO of IN MEMORIAM where she provided consulting EFG America, a privately held EMP-69 services to well over one hun- company deploying a unique dred local and national orga- Natalie Sandstedt is working Judith A. Plummer ’92, daugh- proprietary chemical process with Denmark-based pharma- ter, sister, aunt, friend and nizations and institutions in all that is applied to postconsumer ceutical company Lundbeck classmate, passed away on nonprofit sectors, raising in ex- and postindustrial vulcanized as product manager for Abilify February 17, 2015, after a brief cess of $500 million. rubber. The products produced Maintena, a once-monthly treat- illness. She was 57. She is survived by her son, by the process are a variety of ment for schizophrenia. She is Judy was born in Highland Hendrik “Hal” (Alya) Woods; engineered rubber masterbatch thrilled to be working with an Park, Illinois, and attended Lake and her grandson, Henry formulations suitable for re- organization whose mission is to Forest High School. A 1979 Anthony Adamany Ravenel placement of virgin materials help the patient and their loved graduate of Smith College (BA) Woods; her sister, Alicia Rav- in numerous rubber products. ones. If you don’t see Natalie in and later of the Kellogg School enel; and her brother, William They also deploy a technology an airport, she’ll be fighting for of Management at Northwest- B. Ravenel IV. She is preceded that involves high temperature the last cup of coffee. Jim is still ern University (MBA), Judy in death by her parents, William gasification with potential ap- transitioning into America but held numerous executive po- Bee Ravenel III and Ruth Ti- plication to all kinds of postso- has adopted Giese, Minnesota sitions with Diners Club Inter- sadale Ravenel Geer, and nd by cietal waste with zero emissions as home. national and Citizens Financial her sister-in-law, Ruth Ravenel. and recovery of every molecule Bank during her career. of resource contained in the Judy loved traveling and Edgar B. Anthony Villanueva waste. explored dozens of countries ’87, known as “Gary V.” to his around the world during her friends, passed away suddenly Carrie Wismer Yakola and short life. An avid reader, she in June 2015. He was 53. Doug Yakola reside with their EMP-77 was loved and respected by Gary was executive vice 7 1/2-year-old daughter, Lucy, president at Rizal Commercial Homa Ghaemi, PE, SE, was her family and friends for her just north of Boston on the Sea- Banking Corporation (RCBC) in named COO of Klein and Hoff- generosity, intellect, sense of coast of New Hampshire. When the Philippines from July 2013 man, an architectural restoration humor and great laugh. they are not shoveling snow, until the time of his death. He and structural engineering firm Classmates will fondly re- they enjoy boating off the also served as head of Global in Chicago. Homa will direct, ad- member Judy from time spent coast of Maine and New Hamp- Transactional Services. He minister and coordinate the op- at Kellogg together. Those who shire. Carrie has traded in her headed RCBC’s remittance erational activities of the organi- attended the 2012 reunion are international banking career for business, which grew to be- zation in accordance with K&H left with the memory of Judy her next journey as a full-time come one of RCBC’s biggest objectives, and lead and direct talking to everyone and enjoy- mom and budding children’s sources of growth under his the business units of operations, ing the evening. She was no- author. Her books Full Moon leadership. Prior to that posi- human resources, marketing ticeably in a good place in life. Maxi, Lucy’s Shooting Star and tion, he served as a first senior and business development. A resident of Chicago, she Clayton and the Planets ex- is survived by her parents, Dan- vice-president of RCBC. plore the wonders of the night iel and Margaret Plummer of Earlier in his career, Villan- sky. Carrie is vice president of Lake Forest, Illinois; brothers, ueva worked in major financial PEO, a nonprofit focusing on Daniel, Jr., (Shelley) of Trevor, markets such as New York and furthering women’s education. Wisconsin; David of Holland, Singapore with several multi- Doug is now a senior partner at EMP-85 Michigan; and five nephews national banking institutions, McKinsey and leads their cor- including Bank of America and Bridget Calendo married David and nieces. porate turnaround and restruc- ABN AMRO Bank NV. Spaeth on May 31, 2015. Many turing practice. While he is on Katharine Ravenel, native of Gary Villanueva received an of her Kellogg classmates at- the road quite a bit, the couple Charleston, South Carolina, MBA from Kellogg and a Bach- tended her wedding. still finds plenty of time to en- retired educator and develop- elor of Science in Applied Eco- joy the New England summers ment consultant, passed away nomics from De La Salle Uni- and winters. March 9, 2015. She was 71. versity. He comes from a family Kathy served as assistant with strong ties to Northwest- dean and later, chief develop- ern. His father, Eduardo M. Vil- EMP-86 ment officer for Kellogg. After lanueva ’59, his brother-in-law earning her BA from Hollins Ernest Cu ’84 and niece Eug- Jessica Martino, eBay Inc., College and her MA from Dart- enie Anne Marie (Agregado) EMP-66 Louis Vuitton and Vogue Mag- mouth, Kathy devoted her life de Araujo all attended Kellogg, azine alum, launched a mem- David Altounian earned his PhD to education before going on to and his niece Cristina Cu C02 bers-only, women’s designer in Business Administration from enjoy a fulfilling career in non- received a BA in communica- e-commerce business. Oklahoma State University in profit development. After her tion and media studies. December 2014. He has taken time at Kellogg, she started her He is survived by his wife, a tenure-track position as assis- own firm, Ravenel & Associates, Marilen, and his daughter, Sam. tant professor of entrepreneurship at St. Edward’s University in Austin, Texas.

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MIKE WEIN ’75 MARJOLEIN BAGHUIS ’94 The Specific Edge: Activists Dare to Care: How Sustained Effort Wins in Business and Life Brand Your Activism for Social Change

There’s a misconception that success is Today, people expect brands to do the result of innate talent, dumb luck, or more, not just be more. In Activists Dare a magic formula. In The Specific Edge: to Care: Brand Your Activism for Social How Sustained Effort Wins in Business Change, Marjolein Baghuis and co-author and Life, Mike Wein argues that in real- Christophe Fauconnier give insight into ity, winners succeed through a combi- how millennials and an emerging mid- nation of concentration and focus, the dle class are growing a stronger sense of discipline to continually improve and purpose, and how brands can keep up. the endurance to overcome obstacles. Baghuis and Fauconnier expand on The Specific Edge is a blueprint for the this vision by showing marketers why average person to harness the power they should take a lesson from activists of being specific. Whether you are an if they want to be relevant and create entrepreneur, a corporate executive, or building your career, engagement. Many brands have a point of view, but successful Wien can help you discover your “specific edge.” brands, like activists, excel by having a point of action. After 28 years of leadership experience at Pepsi, Frito-Lay, This book is all about using the power of thinking and behaving Citibank and Deloitte, Wien ditched corporate life to found the like an activist to build the success of your brand, and turn it into Specific Edge Institute, where he empowers clients to harness the a powerful catalyst for change. power of being specific. He combines insights from his corporate experience with lessons learned on his journey as a world-class triathlete, having completed over 35 marathons and four Ironman Triathlon World Championships in the past eight years.

RUSS KAMIS ’92 NIKKI D. POPE ’86 AND COURTNEY B. LANCE Aspects of Success: Pruno, Ramen, and a Side of Hope: A Playbook to Get More Out of Life Stories of Surviving Wrongful Conviction

Russ Kamis’ book, Aspects of Success: In Pruno, Ramen, and a Side of Hope: A Playbook to Get More Out of Life, Stories of Surviving Wrongful Conviction, is designed to help you live a hap- authors Nikki D. Pope and co-author pier, more satisfied and fulfilled life. Courtney B. Lance share the poignant, Kamis combines his doctoral research funny and heartbreaking stories of 10 in the psychology of well-being with wrongfully convicted individuals who his experience as a career strategist, proved their innocence and were dis- CEO and executive coach. Aspects of charged from prison. These stories Success provides scientific, time-tested highlight experiences that kept their and spiritually-supported behaviors connection to the larger world in tact: that lead to success, however you when art, music and poetry lifted spirits, define it. or when a meal brought comfort and joy. Kamis’ book is printed in workbook format and contains a Each story in Pruno also offers the perspective of a loved one range of exercises specifically designed to help you become explaining how they got through each day and what gave them more holistically accomplished. His research shows that people hope while their family member or friend was imprisoned. focused on continuous personal development are better lead- Pope and Lance are on a mission to help people understand that ers, friends, spouses and parents. They get more done and are wrongful conviction can be significantly reduced or even pre- happier doing it, and this book highlights the behaviors that can vented with specific systemic changes. help you live the life you want to live. Much of the net proceeds from sales of Pruno will be donated to the exonerees featured in the book and with non-profit organizations that provide related services.

74 KELLOGG FALL/WINTER 2015 CHARLES McCONNELL ’63 JAMES ROSSEAU EMP-98 Conquer Your Yips: Win the Employment You Target Success on Your Own Terms: 6 Promises to Fire Up Your Passion, Ignite Your Career, and Create an When golfers experience the “yips” — Amazing Life an unexpected inability to perform — they probably aren’t thinking about the Throughout his career as a Fortune 100 crippling anxiety of the job search. But executive at Allstate and JPMorgan Charles McConnell has seen job-seek- Chase, James Rosseau mentored ers experiencing the same yips for younger professionals struggling with more than 20 years. issues like career development and As President/COO of Stewart, Cooper goal-setting. He creating peer men- & Coon, Inc., and founder of First toring sessions and, over time, devel- Career Corporation and FindCareer. oped an unofficial guide to tackle these com, McConnell has led thousands of challenges. individual and group search meetings, That guide grew into Rosseau’s book, reviewed countless resumes, and explored a range of employ- Success on Your Own Terms: 6 Promises ment situations for his clients. During that time, McConnell has to Fire Up Your Passion, Ignite Your Career, and Create an Amazing discovered that many job-seekers aren’t aware of the obstacles Life, a straightforward-yet-personal guide for those seeking to in their path, but through honest introspection and intelligent understand their passions and achieve tangible results. preparation, job-seekers (and golfers alike) can create a success- Rosseau shares six actionable techniques for developing a pat- ful job search or golf game and avoid yips. tern of achievement, including embracing your passion, why While golfers will identify with the “yips” and other golf parlance progress trumps perfection and the importance of giving back. used in Conquer Your Yips, McConnell’s unique blend of golf and Rosseau provides inspiration for those beginning their professional employment advice is designed for anyone interested in con- journey and those reinventing themselves, with a focus on creating quering their phobias, be it on the course or in the employment a distinct plan for their best personal and professional lives. marketplace.

CATHERINE CONLEY ’97 JEAN-NOEL KAPFERER ’75 Coming Home: Kapferer on Luxury: The Journey from Heaven to Your Adopted Home How Can Luxury Brands Grow Yet Remain Rare

Coming Home: The Journey Brands in today’s expanding luxury from Heaven to Your Adopted market face a major challenge: How Home, the first illustrated can a luxury brand grow yet maintain children’s book by Catherine the exclusivity to sustain the “luxury Conley, tells the story of a dream”? child abandoned by her birth Kapferer on Luxury: How Can Luxury mother. The book is very per- Brands Grow Yet Remain Rare, the com- sonal for Conley, who, while president of Asia operations for panion to Jean-Noel Kapferer’s book a global consulting firm, adopted an abandoned newborn in The Luxury Strategy, examines how Shaoyang City, China. rising demand from the middle class, Conley’s book addresses questions that she believes her daugh- especially in China, and the visibility ter will someday ask about her birth circumstances. of luxury goods on the Internet are forcing luxury businesses to re-examine their business models. As the sector becomes hot, “‘Where did I come from?’ is a universal question that most chil- Kapferer contends, the meaning of luxury can diminish and cross dren ask in their early years,” Conley says. “The answer to this over into “fashion.” question can be vastly more complex for adopted children.” Kapferer achieves a balance between marketing theory and Conley combines theology with the nuances of her experi- real world situations in this collection of recent articles and ences working closely with Chinese executives. Circumspect in essays, making this a relevant read for luxury executives, com- discussing the merging of careers as consulting executive and munications professionals and anyone interested in the luxury author, Conley says, “for me, the answer to most of the chal- marketplace. lenging questions today — professionally and personally — are spiritual in nature.”

KELLOGGMAGAZINE.COM 75 | MY IDEA |

ELECTRIFYING YOUR BASE UTILITY SMART-DATA FIRM METERGENIUS FINDS NEW WAYS TO ENGAGE ITS CUSTOMER BASE

“Now that the market has evolved, we are able to fulfill our initial vision Getting people to use your new product is difficult enough. and incorporate everything we’ve Getting them to use it in a market that constantly evolves? That learned along the way to enhance can be impossible. effectiveness of that initial idea. Those were the problems Ty Benefiel ’14 and his ” TY BENEFIEL ’14, MeterGenius co-founders — Hillary Hass WCAS’14, Fred Co-Founder, MeterGenius Thwaites MEAS ’13, Yan Man MEAS ’14 and current McCormick PhD candidate Yves Xie — faced after launching MeterGenius, a cleantech startup that developed a platform to monitor smart-meter data. The trick, Benefiel says, was getting consumers to engage provided users with usage data over 15-minute increments, with the possibility of saving money while improving the envi- which removed some of the mystery surrounding monthly ronment. And after numerous iterations and constant testing, charges. By the end of the pilot, MeterGenius had increased MeterGenius is poised to make impact on a market that includes Infinite’s customer retention a total of 27 percent, and saved 46 million U.S. homes sending usage data to power companies customers an average of 6 percent on their monthly bills. Among via digitized electricity meters. customers who logged in at least once a month, the numbers For the team, that meant being flexible when it came to were even higher. reaching its audience. The team had found its niche. But in many cases, The small team grew around Benefiel’s pitch at the Winter MeterGenius found the application’s novelty quickly wore off. 2013 NUvention: Energy course. Back then, the idea was “People don’t want to do homework,” Benefiel says. “We’re anchored in producing hardware that covered an electrical out- not going to keep customers engaged with just usage graphs.” let and enabled users to control attached devices. Eventually, Now beginning another pilot with ComEd in Chicago, the the team pivoted toward a software solution for electricity pro- St. Louis-based MeterGenius is working to increase and retain viders themselves. customer engagement. Their new mobile app sends users push Benefiel cited a 2010 Accenture survey that found people notifications to encourage reduced consumption during peak in the United States spend fewer than 10 minutes per year inter- hours and a real-time rewards program that uses redeemable acting with their energy provider. “To get a motivated customer points to motivate customers to change their habits. base,” he says, “making things easy for them is really important.” People with compatible devices in their homes can even Xie built an application for a pilot with 3,000 customers of turn things off remotely, a sly way of reintroducing the original Infinite Energy, a Texas-based energy supplier. The application concept to the company’s growing base. “Now that the market has evolved,” Benefiel says, “we are able to fulfill our initial vision and incorporate everything we’ve learned along the way to enhance the effectiveness of BY PETER JURMU that initial idea.” k

76 KELLOGG FALL/WINTER 2015 STEER YOUR CAREER!

CMC WEBINARS CAN HELP YOU DEVELOP AND GROW

The Career Management Center offers more than 50 webinars designed to help your professional development. Free online webinars offer in-depth instruction on many topics, including: • Career Management • Leadership • Industry and Functional Expertise

New webinars updated regularly. Check them out at alumni.kellogg.northwestern.edu/careers KELLOGG SCHOOL OF MANAGEMENT AT NORTHWESTERN UNIVERSITY Kellogg School of Management Northwestern University 2001 Sheridan Road Evanston, IL 60208-2001 ALWNE 05KELLOGG SCHOOL OF MANAGEMENT AT NORTHWESTERN UNIVERSITY KELLOGG FALL/WINTER 2015 18 Jus t Win, Baby Inside Kellogg’s venture competition machine 27 Inside New York Bankers discuss investing in today’s market 46 Corporate Response Established companies respond to startups

Fall/Winter 2015 VOL. 23 ISSUE 1