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VANDERBILT BUSINESS OWEN GRADUATE SCHOOL OF MANAGEMENT Fall 2007

V ASIA RISING Spotting Trends in the Far East THE GIANT AWAKENS Dramatic Changes in India

GOOD MEDICINE FOR HEALTH CARE B How Business Can Mend an Ailing Giant

SPECIAL SECTION Capital Ventures: The Rewards and Pitfalls of Entrepreneurship

Special Issue! 2006-07 Donor Report Included

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Fall 2007 CONTENTS

DEPARTMENTS MISCELLANEOUS

2 PERSONAL ASSETS 4 FROM THE DEAN Susan Strayer, MBA ’07: Taking A Message from Jim Bradford Charge of Your Career 6 EDITOR’S MEMO 12 BUSINESS ROUNDTABLE The Challenges and Rewards of The Next Big Thing in Entertainment Starting a New Job 16 STUDENT EXPERIENCE 44 8 INSIDE OWEN Pageants, Politics, and Doing FEATURES Generous Support for Leadership Good by Doing Well Development Program I Owen by A NDREA J ACOME, MBA ’08 Welcomes Its Biggest Incoming Class 26 I Incoming Owen Students Build 7 IN THE NEWS LIVING THE PURPLE PROMISE Houses for Habitat I Owen Jumps Headlines from Around the World After 23 Years and 12 Jobs with FedEx, Karen Rogers in U.S. News Rankings I Accountancy Program to Fill Need for Top CPAs 24 INFORMED OPINION Still Can’t Wait to Get Up in the Morning I Eco-Friendly MBAs Converge on Is It Ever Better to Lend Than to Give? by Y VONNE P ARSONS P OINDEXTER Owen I True Confessions by B ART V ICTOR AND 18 INSIDE BUSINESS W OODROW L UCAS Media Consolidation Could Beneﬁt 64 BOTTOM LINE 38 ASIA RISING Consumers I Foreign Exchange OwenConnect Brings Alums Together Riskier in Asia-Paciﬁc I Cool to Be Better Than Ever Before Schmoozing in Shanghai, Hobnobbing in Kind I Three Tips to Reach Out to by S ETH R OBERTSON Hong Kong & Trend-spotting in Taipei the Hispanic Market I Social Net- working for Competitive Advantage ON THE COVER by J IM B RADFORD Karen Rogers, MBA ’84 58 CLASS ACTS Photo by D ANIEL D UBOIS 44 Richard Burns, MBA ’91— In Search of Secret Sauce BACK COVER THE GIANT AWAKENS Bill Broyles, EMBA ’91— Magic of Business Fifteen Years Have Brought Warp-Speed Change to India The Mark of an Entrepreneur Photo by A LAN P OIZNER by A SIF S HAH M OHAMMED, MBA ’08 Matt Gelfand, MBA ’92— Safety in a Post-9/11 World Zahra MirAfzali, MBA ’05— 48 From Benchside to Business Class Notes GOOD MEDICINE FOR HEALTH CARE How Business Can Help Mend an Ailing Giant by J OANNE L AMPHERE B ECKHAM 38 54 FRIENDS LIKE THESE B-School Isn’t Just About Building a Career by D AVID H ORNSBY, MBA ’86

CENTER SPREAD SPECIAL SECTION Celebrate Owen First: A Report on the Generosity of Owen Alumni and Friends 32 CAPITAL VENTURES 18 Five Takes on the Rewards and Pitfalls of Entrepreneurship

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PERSONAL ASSETS Double-Tasking She Wrote the Book on Taking WEN GRADUATE SUSAN STRAYER, MBA ’07, likens career complacency to dating. Charge of Your Career “You get really comfortable in that relationship with your job. Even if you’re unhappy, the longer you stay in that role, the more difficult it is to leave,” Strayer says. Strayer’s book, The Right Job, Right Now...The Complete Toolkit for Finding Your Perfect Career, was published in January by St. Martin’s Griffin. Although the competition is steep, Strayer says her book is different from the hundreds of career strategy guides already on the market in that it provides advice for all career stages—from resume writing to advice on handling workplace dilemmas to timing the request for a raise. “It’s the total package for anyone from age 22 to 52 who seeks career guidance. It’s also written so that it can be read from cover to cover, or you can choose the section you need from the table of contents.” Her Vanderbilt MBA is Strayer’s second master’s degree. Her ﬁrst is in human resource development from George Washington Uni- versity, but she wanted the business acumen an MBA could provide. An entrepreneur who founded her own career management guidance ﬁrm in the Washington, D.C. area, she was inspired to write a book because her clients voiced similar concerns. Two common job search mistakes are hastily sending out resumes and lack of motivation. “You must be very action oriented. My editor joked that the book should be titled, ‘Get off your butt!’” After receiving her MBA with a concentration in human and organizational performance in May, Strayer returned to Washington, D.C., and to her own career “sweet spot”— Susan Strayer corporate HR. She is currently employed as the director of talent management with The

Ritz Carlton Hotel Company. DANIEL DUBOIS So how did Strayer manage to write the bulk of the book during her ﬁrst year at Owen? “It was really tough. I didn’t get much sleep.” VB

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FROM THE DEAN

A Message from Jim Bradford New Faculty extensive experience in the human ogy. Frequently recognized for excellence in Tech. His work in the field of corporate Dawn Iacobucci, resources field for several U.S.-based com- teaching, he joins Owen from the Simon finance has appeared in such leading publi- To the Owen Community, E. Bronson Ingram panies. Prior to joining Owen, he served as Graduate School of Business at the Univer- cations at the Journal of Finance and the Professor in assistant professor at the Marriott School of sity of Rochester, where he served as associ- Journal of Investment Management. His am pleased to announce the addition of six new, accomplished professors to the Marketing Management at Brigham Young University ate professor of marketing and associate dean research interests include regulation and Owen faculty. Chosen for their excellence in both research and teaching, these With a robust and co-founded the Noah Webster Acad- of MBA programs. mergers, board characteristics and firm per- Iindividuals were heavily recruited to complement and supplement our already body of academic emy, a K–6 charter school in Orem, Utah. formance and the effect of market timing outstanding faculty. This brings to 10 the number of new faculty members added research to her Jacob S. Sagi, on firms’ cost of capital. within the past two years—a significant and smart investment in the future of Owen. credit and exten- Nicole Thorne Associate Professor In addition, I’d like to congratulate several members of our current faculty who sive experience Jenkins, Associate of Management New Appointments to have earned recognition in the form of tenure, advancement or appointments to consulting for several top companies, Professor of (Finance) Endowed Chairs Management Sagi’s research is endowed chairs, including four new chairs endowed in honor of Sam and Evelyn Iacobucci joins the Owen faculty after serv- Bruce Cooil (Accounting) focused on deci- Richmond and E. Bronson Ingram—individuals who have done so much for Van- ing as the John J. Pomerantz Professor in Professor of Management (Statistics) An expert on finan- sion-making under derbilt and the Owen Graduate School of Management. Marketing at the Wharton School of the Samuel B. and Evelyn R. Richmond cial accounting and risk and uncertainty, Please join me in welcoming and congratulating these deserving individuals. University of Pennsylvania. An expert on Chair in Management networks, customer satisfaction and service corporate gover- as well as asset Best, marketing, and quantitative psychological nance, Jenkins is pricing. An expert Craig Lewis research, she has developed advanced cus- currently researching conventional mecha- on financial economics and decision the- Professor of Management (Finance) nisms for earnings management, such as ory, he has been published in Econometrica, Jim Bradford tomer satisfaction models and has earned Madison S. Wigginton Professor restatements and stock repurchases. Her the Journal of Economic Theory and other Dean and Ralph Owen Professor for the Practice of Management several grants and honors, including the of Management National Science Foundation Award. She is work has been honored with several awards highly regarded journals. His research has the author, co-author and editor of several and grants and has been presented at been recognized with numerous grants and Nick Bollen Administrative Appointment books on services and integrated marketing, numerous academic and professional semi- distinctions, including awards from the Associate Professor in Management nars and conferences. Her career includes Research Grants Council of Hong Kong Bill Christie, his PhD in finance and economics at the including the lead marketing research text E. Bronson Ingram Professor of Finance serving as assistant professor of accounting and the National Institute on Aging (NIA). Frances Hampton University of Chicago, and served as in the industry. at the Olin School of Business at Washing- In addition, his work on closed-end funds Michael Lapré Currey Professor of Owen’s dean from 2000 to 2004. He has ton University in St. Louis and as senior earned the “Best Paper” award at the 2006 Associate Professor of Management Management been honored with the Vanderbilt Chair of Timothy M. auditor at Price Waterhouse LLP. Utah Winter Finance Conference. He pre- E. Bronson Ingram Professor in (Finance) Teaching Excellence (1996 to 1999) and Gardner, Associ- viously served as assistant professor of Operations Management Appointed Associate won the James A. Webb, Jr. Award for ate Professor of Steven S. finance at the Haas School of Business at Dean for Faculty Excellence in Teaching on three occasions Management Posavac, the University of California, Berkeley. Promotion and Tenure Development between 1994 and 1998. He is a five-time (Organization Associate Professor Decisions for Current Christie has had a recipient of the EMBA Teaching Award, Studies) of Management Alexei V. Faculty Members storied career in finance and economics and has been ranked either first or second Published in (Marketing) Ovtchinnikov, that has transformed market structure. His among “star faculty” in each BusinessWeek scores of leading David Parsley Posavac is an expert Assistant Professor pioneering and controversial analysis in the B-school ranking from 1992 through academic journals Professor of Management in the field of con- of Management mid-1990s of how individual NASDAQ 2000. He now serves as Owen’s associate and recognized with numerous grants, (Economics) sumer judgment (Finance) market makers were colluding to inflate dean for faculty ddevelopment with awards and distinctions for his research, Promoted to Full Professorship and decision Ovtchinnikov is a the bid-ask spread by avoiding “odd- responsibility for all faculty evaluation, Gardner is an authority on strategic human processes. His research on perceptions of former assistant eighth” quotes led to major reforms at promotion and tenure recommendations. resource management. Among his current Jennifer E. Escalas value and advertising and persuasion has professor of NASDAQ and the introduction of the Christie also collaborates with the faculty research interests are labor market rivalry Associate Professor of Management appeared in such publications as Consumer finance at the SEC order handling rules. Christie joined directors of the school’s varied degreed and the organizational impact of human (Marketing) Psychology and Journal of Economic Psychol- Pamplin College of Business at Virginia the Owen faculty in 1989 after completing programs on curriculum development. resource systems. His career also includes Awarded Tenure

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EDITOR’S MEMO IN THE NEWS

FALL 2007 Finding My Sea Legs Headlines from DEAN J IM B RADFORD The Challenges and Rewards Around the World EDITOR of Starting a New Job S ETH R OBERTSON Free Speech in the Workplace, The Debate Over Net By SETH ROBERTSON CONTRIBUTORS Promoter, A Divine Perspective on Global Poverty SCOTT ADDISON, JOANNE LAMPHERE BECKHAM, JIM BRADFORD, NELSON BRYAN, MANUEL DELGADO, MBA ’97, E’VE ALL BEEN THERE BEFORE. ing article of this issue, Susan Strayer RELEVANCE AND REALITY IN key assertions of the popular experts say, though the demands depend DEAN DIXON, GAYNELLE DOLL, DANIEL It’s the DUBOIS, SUZANNE FEINSTEIN, MARDY first day on the job, and you show up touches on this very topic. That is, being BUSINESS EDUCATION metric and are fueling a passion- on the job’s specific coursework and FONES, RANDY HORICK, DAVID HORNSBY, ready to put your best foot forward, ex- too comfortable in a job, or any endeavor Dean Jim Bradford offers his ate debate that is appear- licensure requirements. People drawn to MBA ’86, ANDREA JACOME, MBA ’08, cited but also nervous. in life, can lead to compla- thoughts on the importance of ing in publications the business side of health care may find WOODROW LUCAS, JENNY MANDEVILLE, Throughout the day, you try cency. It’s much easier to experiential learning in graduate such as Marketing a master’s level business program to their ASIF SHAH MOHAMMED, MBA ’08, to memorize the names of the play it safe and stick with business education. To be suc- News, Loyalty, Col- liking. At Owen, applications for the

YVONNE POINDEXTER, ALAN POIZNER, RIC THORNTON, MCT JEFF SCHWARTZENBERG, JAMIE REEVES, people you meet and absorb what you know, even when cessful in producing graduates loquy, and The two-year Health Care MBA, which make BART VICTOR, MATTHEW WHITE, MBA all of the information being you’re capable of accomp- who are ready for today’s market- Globe and Mail up about a quarter of the MBA program, ’07, AMY WOLF W thrown at you. And if you’re lishing bigger things. But as place, business schools need to do in addition to are up 68% this year, says Larry Van DESIGNER anything like me, maybe you we all know, life is not more than expose students to numerous Horn, faculty director for health care JENNY MANDEVILLE M ICHAEL T. SMELTZER attempt to ﬁgure out as much about taking the easiest the basics of management. blogs that focus programs. Vanderbilt’s business school

ART DIRECTOR as you can on your own, hop- route. As author John —BizEd, September/October on marketing works with its medical school to offer an D ONNA P RITCHETT ing that you won’t appear Shedd so eloquently put it: trends and customer immersion week where Health Care FREE SPEECH IN THE EXECUTIVE DIRECTOR OF quite so inexperienced to “A ship in harbor is safe, loyalty. MBA students observe surgery and spend MARKETING AND COMMUNICATIONS those around you. But no but that is not what ships WORKPLACE —Journal of Marketing, Mar- a night in the pediatric intensive care Y VONNE M ARTIN-KIDD matter how good you are at wearing a are built for.” I like to think that people Professor Bruce Barry’s book, Speechless, keting News, Loyalty, Colloquy, unit. “They get immersed in a whole

ASSOCIATE DEAN OF DEVELOPMENT brave face, you cannot help but feel are not built for complacency. focuses on the collision of free speech and and The Globe and Mail, Summer/Fall bunch of clinical scenarios to deepen AND ALUMNI RELATIONS unsure of yourself. Fortunately my time thus far as editor the workplace and suggests that there is a their perspectives.” P ATRICIA C ARSWELL This is how it was when I arrived at has been everything I hoped it would significant downside when employers GOLF CLUBS AT WORK? —MarketWatch / Dow Jones, July 24 EDITORIAL OFFICES: Vanderbilt University, Vanderbilt in mid-July. Not only was I be—fun, challenging and enlightening all overreact. The author has been Workplace distractions may cost Ameri- Office of Advancement Communications, new to the university, I was also new to at once—and I owe much of that to the interviewed extensively by local and can businesses $650 billion a year. Bruce A DIVINE PERSPECTIVE ON VU Station B 357703, 2301 Vanderbilt Place, university magazine publishing. I had people I work with. I would be remiss if I national media including C-Span and Lynskey, a former marketing director for GLOBAL POVERTY Nashville, TN 37235-7703, Telephone: come here by way of Ingram Entertain- didn’t mention one of them in particular BusinessWeek and has been cited in multi- technology company Wellfleet Commu- As more MBA students become interested 615.322.0817, Fax: 615.343.8547, nications, once fired a middle manager in the potential for the private sector to [email protected] ment Inc., where I had overseen corporate by name. Before I was hired, GayNelle ple business blogs. communications for David Ingram, an Doll, editor of Vanderbilt Magazine, took —C-Span and BusinessWeek, for spending an estimated 40 percent to foster growth in the poorest parts of the PLEASE DIRECT ALUMNI INQUIRIES TO: Owen alum. Before that, I had worked as time out of her busy schedule to shepherd Summer/Fall 50 percent of his time wandering around world, one student-led initiative has led to Alumni Affairs Office, Owen Graduate School of Management, VU Station B 357754, 2301 Vander- a literary agent in Dallas, Texas and as an this issue to publication. She edited many the office disturbing other employees, a most unusual alliance—a partnership bilt Place, Nashville, TN 37235-7754, Telephone: English teacher in Santiago, Chile. While of the articles that follow, including the THE DEBATE OVER NET PROMOTER surfing the Web, paying bills, and read- between Vanderbilt University’s business 615.322.0815, [email protected]. Vander- writing and editing had always played an cover piece on Karen Rogers. Since com- Bruce Cooil, the Dean Samuel B. and ing industry magazines. “It’s nice to keep school and its divinity students. Extensive bilt University is committed to principles of equal important part in my career choices, I had ing on board, I have benefited immensely Evelyn R. Richmond Professor of Man- up with the industry, but I think you comments from Bart Victor, Rehan opportunity and affirmative action. Visit the Owen never had the opportunity to apply those from her advice and from the collective agement, and former student Tim Kein- should do that on your own,” says Choudhry and Erin Hoffman. School on the Web: www.owen.vanderbilt.edu. —Financial Times, Alumni Publications on the Web: http:// skills to something as broad as this maga- wisdom of Jim Bradford, Tricia Carswell, ingham, MBA ’89 and senior vice Lynskey, who teaches a course on manag- June 25 www.vanderbilt.edu/alumni/publications zine, and yet here I was, sailing into Yvonne Martin-Kidd and the entire president & head of consulting for Ipsos ing fast-growing businesses at Owen. uncharted waters. Owen team. So much so, in fact, that by Loyalty, have sparked a global debate over —BusinessWeek, July 19 Vanderbilt Business Magazine is published twice a year Frankly I wouldn’t have wanted it any the time this magazine arrives on your the validity of Net Promoter, a popular by the Owen Graduate School of Management at other way. Sure, it would’ve been nice to doorstep I should be feeling much more metric that claims to provide “the single VITAL SIGNS: A SECOND CAREER Vanderbilt University, 401 21st Avenue South, IN HEALTH CARE Nashville, TN 37203-9932, in cooperation with the step into a role that felt easy from the comfortable in my new role. most reliable indicator of a firm’s growth.” Vanderbilt Office of Advancement Communications. start, but then it wouldn’t have been the Comfortable, but not too comfortable, Their research findings published in July’s Pursuing a second career in the booming ©2007 Vanderbilt University. “Vanderbilt” and the challenge I was looking for. In the open- if you know what I mean. VB issue of Journal of Marketing contradict health care field can be rewarding, Vanderbilt logo are registered trademarks and service marks of Vanderbilt University.

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Recent INSIDENews OWEN Classroom New Accountancy Program I Community Building Houses for Habitat I Giving Support for Leadership Development I Media Jump in Rankings I Conference Owen Hosts Net Impact I Students Owen’s Biggest Incoming Class

CLASSROOM “They place a very high value on excep- business world. Our MAcc graduates grate L2L into the core curriculum, utiliz- CEO membership organization, which tional communications and leadership will be prepared to take their careers as ing robust measurement tools and generously provided during the pilot skills, the ability to work well within a far as they want to go—whether it is a dynamic interactive leadership training. phase of the program a significant portion Accountancy team and great analytical and problem- partner in a public accounting firm; a Originally launched as a pilot program of its services and expertise on a pro bono Program to Fill solving skills. Many of the students com- controller, CFO or CEO in a corpora- in 2006 with 40 volunteer participants, basis. Further, students participate in a ing out of college who have these skills tion; or an entrepreneur.” L2L is built around the belief that there is series of transformational “key Need for Top CPAs have not yet considered a career in public Unlike the two-year MBA, the Mas- “no one best way” to be a good leader. experiences” designed to accelerate their accounting. Our goal is to reach them, ter of Accountancy does not require Rather, it is a learning mindset that draws individual development, including leader- BEGINNING THIS FALL, OWEN HAS recruit them and educate them.” applicants to have work experience after on awareness of personal unique attrib- ship training at a major military facility EXPANDED its offerings to include a mas- Historically, demand for certified their graduation from college. A com- utes and leadership style, coupled with such as Fort Campbell. ter’s degree in accountancy. The 10- public accountants has outstripped sup- mittee of accounting industry leaders aggressive coaching and a rich variety of According to Dean Jim Bradford, month program is intended for recent ply. The additional scrutiny of account- serve as advisers for the new degree first- and second-hand learning experi- Owen is blazing a new trail in teaching college graduates who aim to launch their ing practices prompted by the program. Committee members offer ences that maximize leadership potential leadership, and businesses are taking note. careers with one of the top five global Sarbanes-Oxley Act has increased the insights on curricular issues and provide for graduate business students. “We are offering resources, experi- accounting firms—Deloitte & Touche, need for well-trained CPAs. mentoring, internship and career oppor- L2L spans the entire ences and training tradition- Ernst & Young, Grant Thornton, KPMG Owen has built a program that sup- tunities. two years of the Owen ally reserved for mid- and

and PricewaterhouseCoopers. DANIEL DUBOIS plements accounting courses with classes MBA experience, senior-level managers,” “We hear a common theme from these in business fundamentals and communi- its students the value of corporate and with the second he said. “Companies industry leaders,” says Dean Jim Bradford. COMMUNITY cations and leadership. Students will social responsibility. The student group year being today aren’t just look- receive intensive on-the-job training Incoming Owen 100% Owen followed that positive optional, making it ing for smart, enthusiastic

through a paid 10-week internship dur- PHILIP BROOKER,MCT theme by pledging a minimum of the most robust employees, but future leading the program. Graduates will be Students Build $2,500 to Habitat. program of its kind among ers who can empower their orga- expected to take the CPA exam the sum- Houses for Habitat any B-school. The mandatory first year of nizations to adapt, grow and flourish in mer following graduation. GIVING the program focuses heavily on self- the face of unprecedented challenges.” “Today’s public accounting INCOMING STUDENTS FROM OWEN awareness and feedback, including the use firms are large, dynamic started the year off right by giving back Generous Support for of powerful assessment tools such as MEDIA organizations that to the Nashville community. The entire Hogan Assessment Systems and hands-on provide a wide array incoming class, along with a group of Leadership Develop- coaching from second-year students, pro- Owen Jumps in U.S. of services designed to second year students, faculty, staff, ment Program fessional consultants and faculty. Coach- help businesses run bet- Dean Jim Bradford and Nashville Area ing and support for select student News Rankings ter. Our graduates need to Habitat for Humanity CEO Chris LEARN TO LEAD (L2L), OWEN’S participants is also offered throughout THE VANDERBILT MBA PROGRAM be prepared to succeed in this McCarthy were part of a special build- GROUNDBREAKING PROGRAM in leadership their summer internships, an element that LEAPT 15 places to No. 34 in the busi- environment,” says Karl Hacken- ing project. development, has been met by a wealth of will be expanded in the years ahead. ness school category of U.S. News & brack, associate professor of accounting Instead of building a Habitat home support from individuals and corpora- The optional second year—known as World Report’s rankings of graduate and and faculty director for the Vanderbilt in the traditional way, a group of more tions keen to invest now in future genera- “Leadership in Action”—presents stu- professional schools. Owen rose to tie Master of Accountancy (MAcc) than 300 Owen volunteers met at LP tions of dynamic and effective business dents with hands-on challenges of leading Pennsylvania State University at No. 34, program. “In addition, public account- Field to construct walls for seven local leaders. A recent $1 million gift from teams of volunteers on specific projects up from No. 49 last year. Dean Jim ing is a wonderful training ground or Habitat homes in Providence Park. Telos Foundation, Inc., led by Vanderbilt with guidance, coaching and facilitation Bradford attributes the improvement to gateway for those who want to enter the This service project was one of the graduate William M. (Billy) Mounger, by Tim Shaver, trained facilitator for an investment in retaining and attracting unique, hands-on ways Owen teaches BA ’79, has enabled Owen to fully inte- Vistage International, the world’s largest V V

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INSIDE OWEN INSIDE OWEN SHARON KILDAY,MCT faculty and innovative market-driven ini- percent of the class. Taken together, these tiatives such as the Vanderbilt Health developments further strengthen the TRUE CONFESSIONS Care MBA. diverse and global experience available at

“It is rewarding that our hard work Vanderbilt’s B-school. URING ORIENTATION over the past several years is being recog- “This year’s incoming class is excep- LAST AUGUST, FIRST- nized,” Bradford says. “We will continue tionally strong, demonstrating the signifi- YEAR STUDENTS Isaac the push to recruit outstanding students, cant market demand that we continue to Rogers, Sam Kale and build great programs and hire and encour- see for the Vanderbilt brand of manage- Sharran Srivatsaa age world-class faculty because that is ment education,” says Jim Bradford, dean Ddecided to start a blog about their what Vanderbilt—and our stakeholders of the Owen School. “Students want a experiences at Owen. Now, a year —demand and deserve.” cutting-edge, relevant experience that pro- later, owenbloggers.com is receiv- vides them with the tools they’ll need to ing 9,000–10,000 hits per month. CONFERENCE succeed in an increasingly complex busi- The websites TypePad and College- ness environment, and that’s the experi- Recruiter.com have highlighted the Eco-Friendly MBAs ence they’ll have at Owen in the year site, and the Owen bloggers have ahead.” even made their own movie. Converge on Owen Interest in Owen’s diverse range of The site, which has expanded to market-driven academic programs also include blogs from more than a ON NOVEMBER 1-3, OWEN HOSTED continues to grow. Among the incoming dozen students, was conceived as a the 2007 Net Impact Conference, the MBA class, nearly 19 percent of students means for prospective students to world’s largest annual gathering for have declared their intention to pursue get an unfiltered, insider’s perspec- MBA students and young professionals 2007 Net Impact Conference in the next the Vanderbilt Health Care MBA. tive on life and work at the school. most want to be here. We have so overseas; a couple of the Owen stu- focused on corporate social responsibil- issue of Vanderbilt Business. Launched in 2005, this specialized man- You’ll find musings on everything from many prospective students who e-mail dents blog in other languages. ity, social entrepreneurship, international agement education program, designed in politics to Google’s prospective merg- and ask to know more.” Now, says Srivatsaa, “A lot of development and environmental man- STUDENTS collaboration with leading industry exec- ers to a YouTube Daily Show interview Owenbloggers.com is not officially other business schools are starting to agement. The event attracted over a utives and the Vanderbilt University segment on microlending with Nobel sponsored by the school. The bloggers reference our blog. I knew it would thousand participants to the Vanderbilt Owen Welcomes Medical Center, provides students with Peace Prize winner (and Vanderbilt are self-policing, but Owen imposes no take off, but not that it would have campus to explore the latest ideas, the most robust and innovative health graduate) Muhammad Yunus, PhD editorial control. this much support.” trends, tools and careers that use busi- Its Biggest care management curriculum of its kind ’71. But the focus is on daily life in Prospective and current students Will owenbloggers.com change the ness to achieve social good. Incoming Class and features a unique “immersion” com- business school. each account for approximately one- way other business schools handle It was the first time that Owen had ponent that puts MBA students on the Says Srivatsaa, “The blog gives a third of the hits. Alumni (7 percent), their blogs? “I think it might,” says ever hosted the event. The school won THIS FALL’S INCOMING CLASS RANKS front lines of the nation’s complex health sense of transparency to everyday recruiters (5 percent) and faculty (3 Srivatsaa. “Gen-Y’ers are so tech- the honor after a highly competitive as the largest in Owen’s history and is care system. experiences here. A huge part of it is percent) are among the other visitors. savvy, and the more honest the blog is, process among Net Impact’s 100-plus among the most qualified to enroll in Now in its third year, the Vanderbilt to help draw the students who will About 30 percent of the traffic is from the more credibility it seems to have.” chapters worldwide. It was also the recent years. In fact, the 214 new students MS Finance (MSF) continues to be in biggest conference ever hosted by Owen. pursuing Vanderbilt’s traditional full-time high demand among students, with a Net Impact is an international MBA represent a nearly 33 percent NEIL BRAKE nonprofit organization dedicated to increase in class size from the previous nearly 70 percent jump in total applica- portfolio management, financial model- to launch their careers with one of the top improving the world by growing and year. The incoming MBA class has an tions. There are 31 new students enrolled ing, firm valuation, econometric forecast- global accounting firms. strengthening a network of MBAs, grad- average GMAT score of 644, up 20 points in the MSF program with an average ing, risk management, asset allocation, Finally, the Vanderbilt Executive MBA uate students and professionals commit- from 2005; a 3.27 GPA, up from 3.23 a GMAT score of 700, up 30 points from fixed income markets and derivatives. (EMBA) program saw a 25 percent ted to using the power of business to year ago; and an average of 4.6 years of last year. This flexible and modular nine- The new Vanderbilt Master of increase in enrollment, with average make a positive net social, environmental work experience. Owen also reports month program draws upon Owen’s lead- Accountancy (MAcc) program welcomed GMAT scores rising 30 points to 600. The and economic impact. The organization increased percentages of women (28 per- ing finance faculty, complements the its inaugural class of 14 students with an Vanderbilt EMBA is one of the premier boasts a network of more than 10,000 cent) and minorities (10 percent) in the finance concentration in the MBA pro- average GMAT score of 661 and 3.4 MBA programs offered on weekends for members worldwide. class. International students from more gram, and is designed to equip students GPA. Announced in November 2006, seasoned executives, and the full 60-credit Look for additional coverage of the than 20 different nations account for 26 with finely tuned skills in areas such as this one-year program is designed for stu- curriculum is one of the more quantita- financial analysis, investment strategies, dents from diverse disciplines who aspire tively rigorous programs available. VB

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BUSINESS ROUNDTABLE BUSINESS ROUNDTABLE Fast Forward Entertainment Industry Veterans Look to the Next Big Thing

THREE EXPERTS IN they’ll say no. You have to let them expe- do you make everything work alto- concerned about piracy. A lot of the cur- ENTERTAINMENT sat down rience what targeted ads would mean. gether? I think there’s going to be a rent battle focuses on what the device with David Furse, profes- tremendous demand for that both on- will be allowed to do. And that is affect- sor of strategy and market- Products are getting smarter and site and even remotely. ing technology and creativity. ing, to discuss innovations smarter. What’s the next best enter- It’s been a challenge we’ve seen in the in products and services tainment product? broadband business. The AOL guys Bowling: It’s an extremely complex during an April 21 round- once said they were running the largest ecosystem. In our case it may require the Nicholson: The big thing that’s happen- table before a packed Microsoft help desk in the world: most content owner to deal with mobility ing is going to be the switchover from roomful of Owen alumni. of the calls AOL got were customers guys in one location, then fly to Los analog to digital television in February Taking part were Michael having Windows problems, not Angeles and deal with our TV guys, and 2009. That will mean the analog broad- Bowling, EMBA ’97, vice anything to do with AOL. then fly to Austin to deal with the cast will go away and the digital is driving president of entertainment broadband group. down the prices of platform televisions. strategy at the new AT&T; How is content a mechanism or a If the consumer wants to get Sponge- resource across technology, and does Bob SquarePants for the kids, he may have Jay Sevigny, EMBA ’05, Bowling: The interesting question is to that change the way you think about to pay once to watch it on TV and again COO, Video Gaming what degree the entire home will go to your business? to watch it in a broadband environment. Technologies; and Alex one brand, which is what some of the If the consumer ruled, it would have a lot Nicholson, EMBA ’01, major electronics companies are trying. Nicholson: In the electronics industry, of implications for the whole content side president and CEO of How many people are going to have all there are a lot of battles going on of the business. What we’re trying to do is Nicholson’s Hi-Fidelity of their TVs from one end of the house between the manufacturer and sellers on to work with the content owners. Center, Inc., a 60-year-old to the other all the same brand? To me one side, and the content owner on the If you look at the cable TV business, Nashville business which it’s not realistic. One manufacturer has other side as to what devices will be half the money flowing in comes from was recently sold to Audio tried putting out their own memory allowed to do. The point of view of the user fees and half comes from advertis- Video Excellence, Inc. stick, but it was incompatible with every ing. The content ecosystem is very com- What’s the most impor- The market researcher did a lot of work with Ralston Purina and dog plex, but I think we can get everybody tant innovation that will on the notion that if the pot gets bigger change our lives in the food. I said, “I’ve always wondered, what do you do? Do you starve it will make a lot of sense. next five years? the dogs and then see which bowl they go to?” He said, “Dogs don’t The second piece is the notion of the fast-forwarding and skipping through all what we think the player will do. We buy dog food.” You’ve got to think of the purchaser. long tail of content. If you think about Bowling: The changes we’ll see in the commercials up to the point where may see only a small portion of your —Jay Sevigny, EMBA ’05 the way we all consume content, NBC, advertising in the next five or ten years they see one that’s relevant to them and behavior, but we can predict what kind ABC and a very small group of content will be transformational in the way we they might actually want to watch it. of player you’ll be, and we can update individuals have decided what’s enter- other electronics device so it didn’t experience life day to day. New media That’s going to be an incredibly power- our customer base. We’re doing an Electronics Association—the trade taining. To a large extent they’re right— work. How do we sort through stan- will reach the point where we’ll have ful trend going forward. If we can get awful lot of that. group representing manufacturers and they do a really good job with that mass dards of operability so that new devices enough insight about you that ads can around the corner, consumers will see it sellers of consumer products—is that audience. But there is content that never Bowling: that consumers are dying to have are be targeted while you’re watching televi- as a positive. A key element is figuring out once a consumer purchases content makes it to the surface. With nonaffili- compatible and operable? If someone in sion or on your mobile phone. There’s a how to get consumers to be open to the legally once, he ought to be allowed to ated content producers such as the Sevigny: a household wants to watch Television lot of sensitivity around, but we’re see- Casinos are using information idea of using customer data insight to enjoy it when and where and how he YouTube phenomenon, people are cre- A and someone else wants to watch ing research that shows if the ads are to find out who’s doing what, and the create a better experience as opposed to pleases. On the other side are a lot of the ating content that doesn’t work through Television B and someone else wants to relevant enough, they actually become real revolution is to take that informa- creating the next pop-up ad. If you ask a content owners. The recording industry the traditional channels. content. TiVo and others say people are tion and say we’re going to find out focus group if they want advertising, watch a program they’ve TiVo’ed, how and the motion picture industry are

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BUSINESS ROUNDTABLE BUSINESS ROUNDTABLE

It’s not just BEING innovative but CONTROLLING innovation. It’s RETHINKING, and then trying things rapidly. FAILING faster is sometimes more important than getting it right.

We are starting to understand what lators are not yet ready for us to down- In terms of trying to brand your own Sevigny: A long time ago when I the individual consumer likes so that load content because they fear the abil- product and dealing with content, to worked with my first market research when you turn on your TV, if you ity to change too many things on the what extent is the drive of consumers company, the guy came and told me his watched three things on the Civil War fly, and customers aren’t ready for that and users to create their own content qualifications. He did a lot of work with last week and three came out of the Dis- because they fear that we’re going to influencing choices you’re making? Ralston Purina and dog food research. I covery Channel, we can monotize your change the odds as soon as they start To what extent are you looking for said, “I’ve always wondered—what do options. The notion of how you con- winning; they’re irrational as to what consumers to be able to share infor- you do? Do you starve the dogs and then sume content is undergoing dramatic happens with a device they’re playing. mation about their viewing habits see which bowl they go to?” changes. It’s going to fragment and But content has become a separate with each other? He said, “Jay, dogs don’t buy dog cause healthy changes in an industry issue from the device. We’re going to be food.” I’ve always remembered that. that absolutely must change. It will be seeing more and more companies that Bowling: We’re looking at the whole You’ve got to think of the purchaser. fascinating to watch and participate in have opportunities to create content and notion of user-generated content which The challenge in our business—and the the challenge. other businesses and entities with isn’t for publishing to the world—it’s for opportunity—is that we have two major licensed brands that can be used for sharing within your community. From a customers. We have the person who Sevigny: In our world, which is essen- content. You’ll see a greater division cross-platform point of view, since we selects the device, who chooses to put tially gaming devices, our platform is between people who make the technol- have a wireless business and a broadband our company in the casino. And then we really consumer-based gaming, and the ogy equipment and the people who cre- business and a TV business, the notion of have the person who actually plays. We machines need players as clients. Regu- ate the entertainment content. being able to snap a photo in your cell DANIEL DUBOIS refer to the casino person as the customer Sevigny shares his perspective on changes in the gaming industry. phone and have it show up on the kids’ and the player as the player. And our DANIEL DUBOIS channel at the grandparents’ house— objective is to create longevity with our your kids’ channel, not the world’s kids’ customer, and to provide products for has migrated from retail to system inte- Everybody today wants innovation channel—that whole notion of how to the player. We have to really understand gration so you’ve got all these great strategy. What’s the key to being share photos securely within your com- what it is they prefer—to find out what devices that do all these wonderful innovative? munity is going to be a very powerful they like, what are the choices, the things—but how do you make them Nicholson: I’d say it’s not just being concept. trends, and which ones should be copied. work together, and how do you interface innovative but controlling innovation. And another notion is what could be A fellow I worked with in Las Vegas who with them? called the wisdom of the crowd, what’s designed many of the devices there made My successor company starts out, Bowling: Given that AT&T has to cre- hot on TV. One of the demos I’ve seen is a comment that I’ll never forget. He said, instead of showing customers a TV or ate an eBay-sized company every year to almost like a live Nielsen rating. When “Before I die I hope to have an original home theater or something like that, get single-digit growth, we’re all about you hit your channel guide, there are four idea.” Everything is a recirculation of they show customers a control device, a that. It’s rethinking, and then trying or five channels that are red hot because what you’re aware of. touchpad. You start with the control the Philadelphia Eagles are about to score device and work backwards to everything things rapidly. Failing faster is more or they’re about to name the American Nicholson: When I started in my family else, because the user interface is the important than getting it right. Idol winner. Your guide tells not just business about 20 years ago, remote con- important part of it. Everybody’s TVs Sevigny: David Owen here at the Owen here’s what’s on, but what’s on that’s trols were not desirable because our cus- are good, everybody’s speakers are School taught an innovation class, and his worth watching. Think Wikipedia: we’ve tomer was an audiophile who wanted the good—but how do you interact with all message was that an innovative process seen general research which says Internet highest-quality sound performance in his these things? If you can’t make them will need an innovative person hands- users trust recommendations on the system. Remote quality didn’t add any- work, they’re no good to you. The down every time. Treat innovation as a Those in attendance heard the experts weigh in on everything from digital technology to electronic content. Internet more than they do the experts. thing to that. Now the way things have largest vendor, from our successor com- process that needs to be planned. VB changed so much, consumer electronics pany is the control system company.

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STUDENT EXPERIENCE STUDENT EXPERIENCE More Than Skin Deep Pageants, Politics, and Doing Good whole world. Regardless of nationality, opment of the city in terms of more quantitative analysis. language, skin color, or religious belief, I infrastructure, transportation systems, During the first days of the USBCC by Doing Well learned we are all human beings in a con- and market networks, among other jobs. (U.S. Business Communication and Cul- By ANDREA JACOME, MBA ’08 stant race against time to make our I was passionate about learning to run tural Program) I was not sure letting peo- dreams come true. (Does this sound a city under a decentralized structure ple know I had won a beauty pageant familiar too? Probably.) with a fast development rate and in a would be wise—I thought they might For one year, as Miss Ecuador, I constant search of competitiveness. But I make assumptions about my abilities and REMEMBER VALENTINE’S DAY OF worked for my ideals. What a pleasure! I became disappointed by the bureaucracy my work. But then I realized I was wrong. 2003 CLEARLY. Sitting on board an air- did not appear on many magazine covers and length of time it took to move social Dean Bradford did a big favor for me by plane bound for Quito, the capital of or in fashion shows as traditional beauty initiatives forward. And potential con- posting under special facts of the incoming Ecuador, for a 40-day adventure felt sur- queens do. Instead I spent my time flicts of interest kept me from working in class in the orientation news that “We real. I was not yet convinced that I was working on improving the fundamentals the private sector. I always try to maxi- have a Miss Ecuador.” Mod I turned out doing the right thing. Already I missed of any society—ethics and education. mize the productivity of my time, and so to be very hard taking two advanced my home in Guayaquil, Ecuador, my job, Among other experiences, I helped in the when I started feeling my contribution accounting courses (financial and man- Iand my friends. Somehow I felt I was construction of a rehabilitation center was not everything it could be, I was agement accounting) and economics of leaving a life to which I would never and about 100 libraries in rural areas; in ready to move on in my career. organizations in addition to the core return. But the encouragement of my bringing free medical services to poor Six months later I was ready to file courses all at the same time! mother, friends and boss was stronger regions; and worked to eliminate corrup- my applications for MBA programs in After the first three months I started to than my misgivings, and I faced my fears tion. Though I did not realize it at the North America. I wanted to enter a feel better. I was elected a first-year stu- as I prepared to start my journey as a Miss time, I was slowly working toward my more competitive environment where I dents’ representative for the Owen Stu- Ecuador candidate. I was afraid—afraid to own career as a politician. could learn and grow. I had to prepare dent Government Association; I invited take risks, afraid to fail in this new arena At the end of my year I knew I had for the GMAT in just two months, some peers to participate in the Innova- after an academic career filled with awards gained widespread recognition and burning the midnight oil. In order to tion Challenge and we did very well; as a and a promising career as a risk analyst. respect. I had broken a paradigm that meet the deadlines, I flew to a little town member of the Latin Business Association After arriving at the hotel I faced real- holds beauty and intelligence as mutually in Tennessee called Madison to take the I took the initiative in bringing Latin ity: there was no way out. I decided to exclusive characteristics. I was satisfied. GMAT, and then to Colombia, South guest speakers to school, including work hard to avoid embarrassment on the My lesson was that everyone can reach America to take the TOEFL. Eduardo Castro-Wright, CEO of Wal- final night. Because the rating of the Miss the highest apple of any tree—one just I applied to top MBA programs in Mart U.S. Stores; and right now I am Ecuador TV show is usually very high, I needs to know oneself, believe in oneself, the southeast region of the U.S. It was helping the CMC Pillar of the Owen Stu- did not care about winning as much as I and be passionate. Being Miss Ecuador mainly because of affordability and the dent Government on the design of a spe- cared about doing a good job, especially was not an end but a means. fact that I had some familiarity with the cial program for international students. during the round of questions. Building a In keeping with my intention to con- area. I did not expect to fall in love with My motivation in attending MBA solid good reputation was more important DANIEL DUBOIS tinue working to better society, I accepted an Israeli who owned a business based in school was to sharpen my leadership skills to me than bringing the crown home. I one of many invitations to join a political Nashville. (Hint: diamond store on and increase my business acumen—a job wanted everybody to know that beyond party. In January 2005, with more than Hillsboro Pike!) Owen turned out to be search wasn’t something I’d planned on any physical characteristics, I was an intel- 500,000 votes, I became the second main a serendipitous mix of choice and des- at that point. But eventually I had to ligent person. My lesson was that everyone can reach the highest apple of any tree—one just needs to know oneself, councilor of Guayaquil, a city of 2 million tiny—it was the school I had liked the decide whether to focus on staying in the I spent each of those 40 nights prepar- believe in oneself, and be passionate. Being Miss Ecuador was not an end but a means. which is the center of the Ecuadorian most during my campus-visit tour. U.S. or on following my inner voice and ing to be at my best. (Does that sound economy and the principal marine port I came to Owen ready for a new working on a business plan for an familiar to you? Probably—it was also one national issues. I worked on my gestures, My preparation paid off. I won the title on the Pacific Coast. chapter in my life. I knew it was going to Ecuador-based project. of my first assignments in the Leading on my voice. Believe it or not, I worked on of Miss Ecuador against a field of 13 other This time I had entered a more diffi- be challenging, given the cultural and As time went by, I became passionate Teams and Organizations class at Owen.) my elevator pitch! Competition to me was competitors. And yes, my answers led me cult playing field. I was a 25-year-old language differences. Just reading cases about the retail industry—not surprising I read a lot about local, national and inter- not about trying to be better than the oth- to the crown. Suddenly I found myself female working on a board mainly com- and developing write-ups in a language given that I come from Guayaquil, a city ers—I was never going to be taller. It was, preparing to compete for Miss Universe. It prised of males 50 and older. I felt com- that was not my first took hours. It was a where lots of money comes from retailing. ANDREA JACOME is co-owner of the 8:10 and still is, about waking up in the morn- was a wonderful experience sharing the fortable though. Our main duties were change from my former fast-paced life in Since this wasn’t an area of expertise for Café at Owen and serves as president of the ing and deciding to be better than I was most exhausting 20 days of my life in to issue and revise ordinances; and to which I had constantly moved from one me, I focused my efforts on finding a Global Business Association. the day before. Panama with 80 representatives from the plan, coordinate and execute the devel- place to another all the time and done Continued on page 62 V V

16 F ALL 2007 V ANDERBILT B USINESS 17 272160 VBusiness_minusCNotes:235521 11/27/07 3:33 PM Page 18 18 The Business World Business The F ALL Media 2007 Vanderbilt and The Benefits of Consolidation Benefits The INSIDE Froeb cautioned against limiting the constant in the economy is “change,” Underscoring the reality that only both of which serve the public good. and results in greater program diversity, tion reduces the incentive to raise price share or advertising sales. cannibalizing each other’s audience move apart from one another to avoid tives to differentiate their playlists and stations in the same market have incen- dence that merged ﬁrms such as radio Trade Commission. Froeb cited evi- Bureau of Economics at the Federal and viewpoint as former director of the fessor Luke Froeb shared his experience these hearings in December, Owen pro- media industry consolidation. At one of hearings across the U.S. on issue of MISSION T B Consumers Benefit Could Media Consolidation MEDIA HE Y According to Froeb, this differentia- A F MY EDERAL I recently held a series of public W Finance OLF C OMMUNICATIONS Foreign Exchange RiskierForeign Exchange in Asia-Pacific C OM - Trade Commission from 2003 to 2005. Bureau of Economics at the U.S. Federal He was also director of the Justice. economist for the U.S. Department of From 1986 to 1992 he worked as an economics of competition law and policy. panel. were blocked by a federal appeals court ownership rules in 2003, but the changes change that.” react to change. Overregulation could U.S. economy is ‘elasticity’—its ability to Enterprise. “The greatest strength of the fessor in Entrepreneurship and Free and Margaret M. Oehmig Associate Pro- tion of listeners,” said Froeb, William C. from each other to prevent cannibaliza- same market move their formats ‘away’ solidation. ing regulations governing further con- industry’s ability to react when design- nies in Western industrial countries are can be potentially devastating. Compa- enormous impact on proﬁtability and rency exchange exposure can have an W B Pacific Riskier in Asia- Foreign Exchange FINANCE EVER Y T IACA AKT BECOMING MARKETS FINANCIAL ITH Froeb has published extensively on the The FCC tried to relax local media “Commonly owned stations in the S COTT more global and fast-moving, cur- A DDISON I Environment

DEAN DIXON MCT MATAMOROS, FRED BUSINESS Cool Kind to Be R&D (www.managementrandd.blogspot.com). textbook on economics and started a blog, Management uate competitive effects of mergers. He has also written a antitrust enforcement agencies all over the world to eval- Trade Commission. He has constructed models used by person staff as director of economics at the Federal During a two-year leave from Owen, he managed 100- Froeb. “Then I have their attention.” in class until some student raises a hand to object,” says years. “I keep saying more and outrageous things have voted him outstanding professor for the past three nomics. That’s one reason why Executive MBA students examples to illuminate points about managerial eco- out. Froeb, an associate professor, relies on unusual icy? On any given day, Luke Froeb’s students might ﬁnd Jones and country music radio relate to competition pol- Barack Obama and tortilla riots? How do, say, George The Iconoclast Economist. Froeb brings far-ranging experience to the classroom. I Culture What’s the link between Three Tips to the Hispanic to ReachThree Out Market I Marketing V ANDERBILT Social Networking students sit up and listen. correlations make his Froeb’s unexpected B USINESS 19 272160 VBusiness_minusCNotes:235521 11/27/07 3:33 PM Page 20

INSIDE BUSINESS INSIDE BUSINESS

quite sophisticated in currency hedging ation of their assets or severe increases in profitability of companies whose financial CULTURE and operate with a modest amount of their debt obligations held in foreign cur- assets and liabilities (most notably debt) risk. But in the rapidly emerging Asia- rencies,” says Parsley. were held in foreign currencies and that Pacific region, reliable data has been The researchers also noted that the had foreign-based operations. Possibly Three Tips to much less available. increased orientation of Asia-Pacific less obvious was the significant impact ReachOut to the Owen professor David Parsley and countries to reduce restrictions on capital that exchange rates had on companies Helen Popper of Santa Clara University flows could, in some cases, have magni- with no foreign currency exposures but Hispanic Market undertook a study that evaluated the fied currency risk. They suggest that cur- who competed with companies that did. BY M ANUEL D ELGADO, MBA ’97 extent of foreign exchange exposure rency market liberalization proceed at a Such companies could increase their mar- among firms in Hong Kong and eight “gradual” pace accompanied by more ket share as a result of a favorable IN 1995 THERE WERE ABOUT 24 MILLION Asia-Pacific countries— Indonesia, intense oversight of how companies exchange rate movement to the Hispanics in the U.S. Today, that num- Japan, Korea, Malaysia, the Philippines, access foreign exchange markets. detriment of the firm with no apparent ber has almost doubled to 44 million— Singapore, Taiwan and Thailand—and The study found that many Asia- foreign currency exposure. which means that there are more compared it to that of two benchmark Pacific firms showed significant expo- The researchers discovered that cur- Hispanics in the U.S. than Canadians countries, Australia and New Zealand. sure to fluctuations in one or more of rency pegs—where a country fixes the in Canada. In addition, they researched whether the world’s four major currencies: the exchange rate of its currency to that of Hispanics are very concentrated geo- there was a link between currency risk U.S. dollar, the euro (deutschmark prior another country—are an imperfect solu- graphically, with half of all Hispanics and the use of exchange rate “pegs.” to 1999), the Japanese yen and the tion. The research showed statistically living in California and Texas, but this is The study examined the exchange rate British pound. Some of the greatest vul- significant risk related to the dollar for a changing. Between 1990 and 2000, the exposure of companies in Hong Kong nerabilities resulted from fluctuations in much greater number of companies with fastest-growing Hispanic states were in and the eight Asia-Pacific countries from the dollar. Relatively few companies in a peg in place than without one in what is now called the “New Latino 1990 through 2002. The 13-year span of any of the nine markets were vulnerable Malaysia, the Philippines and Thailand. South”: the study encompassed a host of major to the British pound. The results were even more pronounced North Carolina (394 percent growth), changes in the economic landscape of the The researchers pointed with the yen. Arkansas (337 percent), Georgia (300 selected countries. out that “a potentially wide Parsley believes that the extent of percent), Tennessee (278 percent), South As reported in the November 2006 range of firms were exposed exposure in the Asia-Pacific region Carolina (211 percent) and Alabama issue of The Journal of International to rate movements almost certainly continues today since (208 percent). Money and Finance, they show that regardless of their hedging practices have changed little. 1. Be aware of the culture and connect many Asia-Pacific companies have direct financial expo- “Despite a Western push for market lib- Hispanic families resemble the middle- significant exposure to foreign sure.” As might be eralization, economies throughout the class American family of the 50s: the exchange risk, and their vulnerability is expected, currency region would be well advised to maintain RICK NEASE, MCT woman stays home and the man goes out much greater than that of companies in fluctuations a slow-and-steady approach, encouraging environmentalism is right now, says Gigi are made from plants, not petrochemi- to get the bacon. They are cemented by a large, developed affected the more company-level hedging, moving Guttman Abbadie, MBA ’93, global cals,” said Abbadie. “If we do that, solid respect for parents, which transcends Western away from single-currency pegs, and fur- director of marketing for Aveda. we…change the world,” even though boundaries and goes back to their country economies, ther developing bond markets in the STOCKXPERT Speaking at Owen’s fourth annual plants are difficult to market. “People of origin. including the Asia-Pacific region.” marketing camp in January, Abbadie don’t care about plants becoming extinct” Religion and spiritual beliefs have a benchmark identified several reasons that environ- the way they care about cuddly animals, central role in defining Hispanic values, countries of ENVIRONMENT mentalism is a red-hot consumer trend she said. and there are other elements intrinsically Australia and right now: Hurricane Katrina, Al Gore’s Larger companies are buying up Latino that characterize the culture: the New Zealand. Cool to Be Kind An Inconvenient Truth, endangered winter branded organics. “Converting customers Spanish language, music, food, social “The basic sports, endangered species, and gas prices, is a cause,” she said, “And providing them interactions and fiestas. issue we highlight is B Y G AYN ELLE D OLL which hit us where it hurts. Additionally, with the opportunity to be everyday Most Hispanics left everything behind that many Asia- IN 2004, THE NEW OXFORD she said, on October 17, 2006, the U.S. heroes is great business.” to come to America, and your commu- Pacific businesses DICTIONARY WORD of the year was population reached 300 million. But Abaddie cautioned against green- nity is their new home. Try to imagine haven’t hedged their “blog.” The following year, it was “pod- “The number one reason children are washing—pretending your company is being in their shoes—leaving your exposure and face sig- cast.” Last year it was “carbon-neutral.” absent from school is asthma,” she said. green when it really isn’t. “The consumer friends, family and all you know to move nificant risk of depreci- And that speaks volumes about how big Aveda, “wants to create products that sees right through it.”

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SEEING THE BIG PICTURE. Profes- sor Dawn Iacobucci brings a wealth of knowledge and experience with to a far away country. What would you Many of the messages that you use for the context of a traditional marketing her to Owen. An expert on networks, like to ﬁnd there? non-Hispanic market will resonate and program, because consumer-to-consumer

DEAN DIXON customer satisfaction, service market- What would help you create a new work well for Hispanics. networks are so dynamic: they change ing and quantitative psychological home? At the end of the day, Hispanics are almost daily. American in the most meaningful sense of research, she has spent a good deal of 2. Resist stereotypes her career as a business consultant the word: they are here working hard to Q: Are there examples of industries that All Hispanics are Mexican, with low and as a professor at Northwestern’s give their children a better future. are taking the lead or are lagging behind income and no education. Right? Kellogg School of Management and Woodrow Wilson said, “America lives in in tapping into the social networking Stereotypes are the elephant-in-the- the Wharton School at the Univer- the heart of every man everywhere who medium? room of Hispanic marketing. But as Mark sity of Pennsylvania. But it is not just wishes to find a region where he will be Twain said, “It ain’t what you don’t know IACOBUCCI – Music and entertain- her business background that makes free to work out his destiny as he that gets you into trouble. It’s what you ment have been among the early adopters her so valuable to Owen. In addition chooses.” And Hispanics came here to know for sure that just ain’t so.” of social networking to drive sales and to holding degrees in quantitative find the America that was already living in A quick look at the Hispanic demo- business strategy. Just look at the rapid psychology and statistics, Iacobucci their hearts. graphics shatters all stereotypes: half of migration of artists to MySpace and simi- has a master’s in theological studies, which gives her a unique perspective Hispanics work in white collar jobs. With lar sites, despite the fact that the Internet Manuel Delgado is CEO of REALITY, was a major reason for declining sales just on teaching. She says there are many a median household income of $45,000, a marketing firm focused on the U.S. a few years ago. On the other hand, the parallels between studying business almost half of all Hispanics are middle Hispanic market. sports area of entertainment hasn’t taken and religion, though most people class or higher. Also, 60 percent of all His- advantage of the consumer-to-consumer wouldn’t expect it. “I don’t teach panics have Internet access. That is more MARKETING environment in a similar way. They’ve MBA students specific solutions to Hispanic Internet users in the U.S. than got some catching up to do. problems; I teach them how to think in Mexico. So when putting together your Social Networking about the problem—the big picture. Hispanic marketing initiatives, keep in Q: What are some of the unique Not surprisingly, that’s what the mind that you might be dealing with a for Competitive challenges for service marketing in divinity school teaches too!” different audience than what you think this environment? you know. Advantage IACOBUCCI – Unlike packaged goods 3. Don’t forget the “American” R EPORTED BY S COTT A DDISON or electronics, service industries have to As “dash” American, Hispanics have the THE FOLLOWING Q&A IS DRAWN FROM contend with various human factors same worries and concerns as non- a discussion with Dawn Iacobucci, the that can have a huge impact on the Hispanic residents: paying for taxes, sav- new E. Bronson Ingram Professor in Mar- consumer-to-consumer environment. ing for college, kids’ weddings and retire- keting, about the opportunities to use data The customers are much more involved, ment. Staying healthy. Being happy. from social networks for competitive as are the front-line employees. This

advantage and the inherent challenges of makes for less reliable quality control ISTOCKPHOTO service marketing and customer relation- and the potential for dissatisﬁed ship management in an era of consumer- customers to instantly impact markets. driven brands. Q: Can service companies succeed in a Q: Social networking has rapidly consumer-driven environment without become a dominant force in the market- jumping into the online space? ing of goods and services, especially for younger consumers. How well do com- IACOBUCCI – Companies are starting Iacobucci brings a panies understand the new marketing to realize that not being in these online broad perspective to channels it is creating? spaces is not an option. It’s the preferred her marketing classes. medium for the newest generation of IACOBUCCI – Not very well. It’s incred- consumers—who also happen to be more ibly difficult for corporations to compre- affluent consumers than younger people hend and utilize these channels in the have ever been.

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INFORMED OPINION INFORMED OPINION The Poverty Paradox Is It Ever Better To Lend Than to Give? By BART VICTOR AND WOODROW LUCAS DIEGO GIUDICE,MCT ECENT NEWS IS HIGHLIGHTING (c) enriching the social and reputation microlending for small-scale entrepre- can transform the conditions of poverty. AN APPARENT paradox at the capital of the poor. With productive capa- neurship or development, most institu- The initial research is promising. Repay- heart of the relationship between bility, access, and reputation, the poor tions retain the basic features of the ment rates for microfinance are typically business and poverty. Pawnshops, become like the non-poor: able to exercise pioneering work of Mohammad Yunus between 95 and 100 percent. Those poor payday lenders and other “fringe” their freedom to choose a better life. (Vanderbilt PhD ’71) and the Grameen (primarily women) who have participated lenders to the poor are often con- Gifts of charity do provide income to Bank. These common features include a) in microlending have been shown to sidered predatory at worst and the poor, but they do not necessarily small interest bearing loans (typically less increase their personal spending on their vaguely unsavory at best. Yet in increase their freedom. But all gift giving than $1,000) for the capitalization of pro- children’s education, improve their own R creates some form of indebtedness. Only ductive or entrepreneurial activities, b) housing, and enjoy better nutrition. 2006, the Grameen Bank, a lender to the poor, was selected for the the poor receive gifts of charity. And borrowers who because of their poverty There have also been claims of other Nobel Peace Prize. Why does one only the poor truly understand the have not had access to traditional bank- social benefits such as opportunity for kind of lender deserve disdain and weight of the debt created by such gifts. ing, and c) loans often collateralized by political empowerment and choices of For the poor, their gift public versus private school- another, so apparently similar, the By partnering with one another and with the lender, the Nobel Peace Prize? There are no debt can never be repaid. ing for children. Finally there easy distinctions between the As a result, charitable gift poor take what they have—each other—and transform it are claims of psychological Grameen Bank and other lenders giving can increase the into a gateway to the greater economic community. benefits from microlending to the poor. All make interest- unfreedom of the poor by such as increases in self-confi- bearing loans; all require some confirming to themselves and others shared small group commitments. Such dence and self-esteem. form of collateral; all actively “sell” their status as distant, needy, and differ- loans are generally made for working capi- Before and after receiving a gift of their loans; and all seek sustainabil- ent from the non-poor. It is perhaps not tal or other commercial purposes al- charity, the poor remain the poor and in ity and growth for their banks. We surprising that while charity may work though real estate and housing financing debt. But through microlending the poor believe that the resolution of the well to temporarily ameliorate the suffer- are sometimes also available. borrower gains both the new capabilities paradox is found in how, as one ing of the poor, it has been criticized for Unlike debts of gratitude or the crip- developed to meet the demands of repay- kind of business has discovered, failing to transform the conditions which pling debts from predatory bankers, ment and the reputation as someone with create and maintain poverty. In fact, microlending offers the poor debts that whom others can do business. That is, that under the right conditions Gifts of charity do provide income to the poor, but they do not necessarily increase their freedom. and with the right approach, the charity has been associated with not only can be repaid. Microlending gives the when it all works, the poor become more greatest gift to the poor can be the oppor- definition severely resource-limited. The expectancy, health, physical security, not changing the conditions of poverty, poor the opportunity to use the bonds of like the non-poor: willing and able to pay tunity to repay a debt. debt burden of a loan, even if that debt is hunger, and homelessness is associated but even deepening them. trust which they have established with one their debts. The vulnerability and critical needs of limited to the principle, would always with, but not directly caused by, income The lives of the poor are precarious, another as collateral. By partnering with Of course it doesn’t always work. And the poor seem to call for absolute generos- appear to be more costly to the poor in insufficiency. Income provides a degree of dangerous, and disadvantaged. However, one another and with the lender, the poor not everyone can make the changes ity. Every day, all over the world, private comparison to outright gifts or charity. freedom of choice. However, this freedom the poor are not without any resources take what they have—each other—and required. But among the 4 billion poor in gifts and public welfare relieve the imme- But, are there conditions when, towards of choice can only enhance the quality of and they are not irretrievably lost. transform it into a gateway to the greater our world, there are billions who desire diate experience of poverty. They sate the objective of alleviating poverty, lend- life through the effective or substantive “Microlending” is an approach that economic community. Microlending asks and can achieve a way out of poverty. hunger, secure shelter, protect health, and ing might be preferable to charity? freedom to choose. In these terms, poverty begins with the assumption that poverty is the question, “What can you do of value BART VICTOR is the Cal Turner Professor offer positive experiences and even joy. At Development researchers such as the alleviation is a question of increasing sub- the problem, not the poor themselves. with the money lent?” rather than “Are of Leadership at the Owen Graduate the same time, around the world the poor Nobel Prize-winning economist Amartya stantive freedom, not simply increasing Further, it assumes that under the right you needy enough to deserve the money are preyed upon by lenders who offer debt Sen have demonstrated that being poor wealth. In practical terms, alleviating conditions and with the right methods, given?” Microlending seeks to enable the School of Management. Woodrow Lucas is that tightens the grip of poverty. On the involves much more than simply having a poverty requires: (a) enhancing the capa- the poor can become non-poor. impoverished to in fact “produce” enough a PhD candidate at Owen. surface, charity would appear preferable low income. In Sen’s research, the quality bility of the poor to create value; (b) link- While there are numerous variations value to pay back the loan. to lending simply because the poor are by of life, indicated by such measures as life ing the poor into the larger economy; and and innovations on the theme of The promise of microlending is that it

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Living the Purple Promise After 23 years and 12 jobs with FedEx, Karen Rogers still can’t wait to get up in the morning.

By YVONNE PARSONS POINDEXTER

aren Rogers is a big fan of murder mysteries, but on the day a photographer arrives to take her pic- Kture for Vanderbilt Business, a biography of General George Marshall sits center stage on the table of her office at FedEx corporate headquarters just outside Memphis.

Photograph By DANIEL DUBOIS 272160 VBusiness_minusCNotes:235521 11/27/07 3:34 PM Page 28

“Someone suggested it to me,” she alliances. Think FedExCup, the PGA how to get more inventive. The bar is would be millions of dollars in impact. explains. “I’ve been told that I’m more tour’s new championship trophy, and definitely higher.” And if you did it well, you wouldn’t get like Marshall, a peacemaker type who Joe Gibbs Racing, the FedEx sponsor- A fan of NASCAR racing and profes- accolades,” she explains. Her tack was to Have A Package? Just FedEx It understood the political landscape and ship in NASCAR. sional bull riding, Rogers doesn’t shy reengineer the process in a way that How a phrase has the world talking. knew how to navigate it, rather than a “One of the areas of advertising that away from professional risk-taking. Ear- saved the company money—which General Patton type. Both were driven is really TiVo-proof is sports,” Rogers lier in her career, not long after her pro- called attention of higher-ups to her It was William Shakespeare who to win the war, but they had different observes. “There’s a huge phenomenon motion to international marketing skills and ingenuity. was first noted for uttering “What’s ways of getting there. One was willing to of companies either integrating into director, she stepped up to serve for a “I always tell people who look to me in a name?” but Karen Rogers can take a tank and say, ‘I don’t care how sports platforms programs or sponsoring year on a hand-selected team charged for career advice to think two steps hold her own for helping to bring many bodies I run over—I’m going to sporting events, because no one wants to with refining FedEx’s long-term strategy. ahead,” she says. “Look beyond the posi- new significance to the phrase—at win.’ But a statesman doesn’t care about TiVo a sporting event—they watch it If she hadn’t taken on that tion to which you’re being promoted to least to the world of business. every single skirmish—he looks for the step beyond.” In the last decade, FedEx is a win/win solutions, and he always keeps “I always tell people who look to me for career advice Fail to, she says, and a step up could company that’s led the way in lend- the end goal in sight. Some day you may to think two steps ahead. Look beyond the position to which turn into a professional dead end. ing branding new importance in the need those bodies you ran over trying to you’re being promoted to the step beyond. Fail to, and a step “Karen has the ability to look at every- world of business communications get from point A to point B.” up could turn into a professional dead end.” thing with that fresh perspective,” says and marketing. Rogers, BA ’78, MBA ’84, FedEx’s colleague Gayle Christensen, director of “The highest achievement of role in advising investors as a co- vice president of U.S. marketing, has from one end to the other.” challenge—outside the usual framework global brand management for FedEx. “If advertising, public relations, is to founder of Motley Fool. “It’s about had 12 different jobs in her 23 years Rogers is also thinking up new ways for promotions—she probably wouldn’t there’s a way to fine-tune an effort, she get the manufactured, manipulative trust and quality and the ‘right with the company. In each, she has built to manage word of mouth advertising. have had a chance to work on fedex.com. will see it. idea ‘off the page,’ … and accepted image.’” on her reputation for marketing, and “Word of mouth is the most powerful In 2000, Rogers took on the responsibili- Christensen and her team, who work as part of speech,” playwright and Of the FedEx image makeover in managing, with a win/win philosophy. means that a small business uses to make ties of managing director of fedex.com, under Rogers’ direction, were recently screenwriter David Mamet has said. 1995, when the company ceremoni- In her current role, global brand decisions,” she says. “We’re just getting leading the effort to set the company up putting the finishing touches on a vital “E.g., ‘I’ll FedEx it.’” ously changed its name from FDX management is just one of a number of into it in terms of looking for the people as a leader across industries and interna- Web-based photography library for Branding forges relationships Corp. to FedEx, Gardner notes: major responsibilities. The position also who are the influencers. Who is it that tionally for its innovative use of the global FedEx employees. When the pro- with consumers and helps retain “Not Federal Express but FedEx ... gives Rogers oversight of all U.S. adver- small business people are really listening Internet as a marketing tool and ject was close to completion, Rogers them, says Rogers. People are too busy to say Federal tising and brand management as well as to? Their accountant? Their attorney? I customer interface. quickly offered in a meeting that tweak- Analysts and observers agree. Express. If someone needed to get a the company’s world-class portfolio of look at all the content out there on While developing the Web site, ing how the photos were cropped could “Brand equity is more than ‘Hey, package out ASAP, precious time sports sponsorships and marketing MySpace and YouTube and think about Rogers worked directly with company help unify the branding message, tight- I’ve heard of those guys.’” says could be lost on all those syllables. founder, chairman and CEO Fred Smith, ening the grip FedEx had on its all- David Gardner, best known for his Just FedEx it.” NATALIE CAUDILL,MCT whose take on technology and its poten- important image. Even in the tial has driven the company’s growth. photographs, branding is vital, notes “Technology has allowed us to Christensen, and “Karen is a wonderful there,” she says. “Twelve jobs later and “Everyone kept his or her job,” says change the way we go to market with resource. There’s always that spark.” I’m still growing. That’s why I’ve stayed Rogers. That instilled in her a great sense new products and services,” Rogers says. Rogers’ focus may be global now, but with FedEx.” of loyalty to the company. A focus on marketing as it relates to her career grows out of strong roots in As Rogers discusses her career, her Last May, FedEx began offering next- the customer experience has defined Tennessee. Her mother, successful in the enthusiasm never wanes, even when business day service in China, providing Rogers’ professional responsibilities, but securities business in Tennessee when recalling the challenges she first encoun- time-definite services to 19 Chinese cities she’s been sure to diverge from her pas- Rogers was growing up, coached her tered in the company’s nascent, and ulti- and day-definite services to more than sion when opportunity has knocked. daughter early, making sure Rogers mately doomed, fax mail division, an 200 additional Chinese cities. One early promotion came when she embraced an “if it’s worth doing at all, early effort by FedEx to embrace tech- “Think about it. The ability to have took on a mundane project overseeing it’s worth doing well” sensibility. Rogers nology as a marketing tool. guaranteed, next-day service in China is rate sheets. took that advice to heart, even when she That was in 1984, the heyday of the amazing,” Rogers says. “With the new “It was the kind of project nobody was sweeping walkways at Nashville’s fax as cutting-edge business communica- overnight services, FedEx connects wanted. If you made a mistake, there now-defunct Opryland amusement park. tion tool. Not long after she started, more than 90 percent of China’s GDP Rogers credits Owen with getting her FedEx saw that the business model was to the rest of the world through its to FedEx in the first place. “My plan was limited and axed the entire department. global network.” Packages are being checked before they are loaded onto one of the company’s jets at to stay here for two years and then return The people within the department, how- Technology and global expansion will Alliance Airport in Fort Worth, Texas. to Nashville because my family was ever, all stayed. continue to make for interesting oppor-

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KAREN’S KEYS tunities, she says, especially at a company people retiring now than are in the that’s shown it’s ready to embrace both. pipeline. At FedEx as at most companies, TO LEADERSHIP But she still has her eye on middle Ten- people are our number one asset. Yet we nessee and she remains committed to know there’s going to be an outgoing “Your leadership will dictate your success ple like that. It’s contagious. tive. It’s not all about you. Your organi- and always believe that it can be done. giving back to Owen. flood of baby boomers as that whole on Wall Street as well as on Main One of the first things I do when I’m zation’s power is only as good as the least People watch what you do. If you’re not Maintaining ties to Vanderbilt is generation retires. If you look at the size Street,” Karen Rogers told first-year stu- on a new team is to figure out a quick common denominator. The more bright setting the right example in how you’re important, she says, “whether it’s just for of the workforce, it’s not sufficient to dents during an orientation presentation win. That starts everyone talking about people on your team, the more bright peo- making a difference, then why should me to get back to, and give back to, the replace the amount of talent that’s going in August. “It’s not something you get out it and it becomes contagious: others ple you’ll attract. they care? school” or to reap more tangible rewards. out the door.” of a book—the life experiences you have want to be a part of it and be successful Emotional intelligence is the X-factor. Give back. “She’s very decisive,” says Peter FedEx, Rogers notes, has just and the way you study those life experi- as well. Last year when I was among a group of Think through how you can make an Veruki, Owen’s director of corporate announced that it is acquiring a fleet ences make all the difference.” marketers asked to come to Owen and Create a vision and provide clear impact locally and in the community. relations. “She’s a true executive.” of environmentally friendly vehicles. Rogers shared eight keys to effective talk about what we look for in MBAs, it direction. You really can change lives. If you really Though globalization and technol- “We are a company that runs on fuel. leadership—a blend of her own philoso- was the soft skills we all identified as Stay out of the weeds. As a leader, the want to learn and test your leadership ogy make for exciting times in market- We have trucks, we have planes, we have phy and the company’s “purple promise” important; we take it for granted that you first thing your folks will push back on is if ability, there are plenty of agencies that ing in Rogers’ eyes, she often cautions vans, and we’re trying to ensure that we to make every FedEx experience have the technical ability. you get mired in the details and say, “I’m need your help, starting when you’re an Vanderbilt MBA candidates and execu- have the right formula for something outstanding: Be inclusive and value everyone on the a quant jock, I can do these numbers.” MBA student. tives that many businesses still have a that will be sustainable. Right now the team. Diversity isn’t just how you look, Know yourself and let others You’ve communicated to the individual long way to go in embracing market- debate is whether it’s going to be hydro- but you how think. With different skills know you. that you don’t respect that person. Find the right fit and make ing’s full potential. gen or corn, and what are we going to do you’ll come up with a much more Know your weaknesses as well as your Remember the four D’s: delegate, dis- two-step moves. “Marketing is a missed opportunity at to wean ourselves off our dependence on eloquent solution than if you hire people strengths. As a marketing person and as card, defer, and be decisive—don’t over- I’ve been at FedEx for 23 years because many companies,” says Rogers. “If the foreign fuel. It’s pretty clear that we as a who all think just like you do. If everyone a leader, the thing I’m worst at is admin- analyze. The higher up you go in the on the team looks and talks and thinks it’s a company that aligns with my per- istration. I realized a long time ago I organization, the more you need to priori- like me, I might as well be sitting in front sonal values. You spend more time at “Marketing is a missed opportunity at many companies. don’t like dealing with administrative tize. Your time should be precious to you. of the mirror talking to myself. your job than anywhere else. If you don’t If the culture doesn’t support innovation and an entrepreneurial details, but I know these are critical busi- I don’t even open most of my e-mail. I feel good when you go home every night, spirit, marketing can’t realize its potential to giving the ness processes, so I hire people good at it have people who handle it and I don’t You must personally add value. ultimately it’s going to undermine your company a competitive advantage.” and often make myself “just do it.” worry about it. As a leader, much of your job is navigat- effectiveness. I’m vice president of 100 people but I ing the organizational complexities Be flexible and embrace change. I’ve still welcome feedback. I’m a work in Your character is your most you’ll find in any organization. Whether had 12 jobs in my 23 years at FedEx, culture doesn’t support innovation and society are finally just acknowledging the progress. The best knowledge I get is valued asset. there are five people or 5,000, there are and I love it. If I’ve been in a job too an entrepreneurial spirit, marketing can’t tip of the iceberg when it comes to the from feedback I get from my members. Character is the one thing that you carry going to be politics. You have to be able long, then I’ve got my personal stamp on realize its potential to giving the com- environment. I’m proud of FedEx for Be transparent, be open, share. When with you from one job to the next—it is to read tea leaves and understand who’s it. Am I apt to think something is wrong pany a competitive advantage.” taking a lead.” you learn about yourself, it’s okay to your personal brand. If you tell someone got the power and what people really with it? No. I’m apt to think it’s pretty When asked about her next greatest For now, Rogers looks forward to share that information with others you’re going to do something, do it. If want and how you can have impact. darned good because I invented it or challenge, Rogers instantly identifies the onslaught of challenges at FedEx. because that way they understand you. you tell them you’re going to be some- Learn about politics by being a good stu- endorsed it. three that apply not only to FedEx but to The company’s acquisition of Kinko’s where at a certain point in time, be there. dent of human behavior. With your career, as in chess, plan- many U.S. companies—trade imbalance, has helped broaden FedEx’s portfolio Care about your people. If you don’t, you’re not showing respect You’re not going to have impact by ning ahead several steps is important. A demographics and the environment. and merge the digital world with the As human beings, we have an innate for that individual. yourself. You can have a great mission, man who worked on my marketing team “I think the biggest challenge we physical world. sense of whether people are fending for Be courageous. If you’re not taking any a great cause, and be absolutely right, was anxious to get promoted from man- have is the imbalance of trade,” she says. “We have the ground company, we themselves or really caring about you. risks, you’re not doing your job. but you’re still going to need others to ager to director, and he left FedEx and “More and more, the U.S. is becoming a have the air company, we have the People know if you want to get ahead at If it doesn’t feel right, don’t do it. help you, or trust me, they’re going to went to work for a utility company. If consumptive society. Right now there freight company, we’re global, and we’re their expense. The leaders who want to derail you. you’re a marketing person, don’t go to are hundreds of thousands of containers connecting the world of digital space to make you look good are the leaders you Choose the right people. As a leader, people are looking for you work for a monopoly. They don’t need of freight from Asia that come to the businesses,” she says. “If you compare want to follow, because you know they This is the most important decision you to anticipate obstacles and remove barri- you. Six months later he was laid off. He U.S. full and they aren’t even shipped our performance to the S & P 500, we care about you. will make as a leader. ers. You have to be able to sell your ideas, had made a one-step move. back because it’s not worth it. They stay really are a company that’s well As a leader, think about your role as A leader’s job is not to be the to talk about ideas in a way that is com- here empty. What do we do to create positioned for the future.” VB coach. I acknowledge everyone’s suc- smartest. Hire up, and hire people who pelling and engaging. You have to be able If you would like to hear Karen in her own words, more balance?” cesses, and I like to celebrate. Being have better technical acumen than you to sell your people, too. please visit http://owen.vanderbilt.edu/podcasts Rogers also worries about changing Special appreciation to GayNelle Doll enthusiastic is just in my DNA and peo- do. They will make the team more effec- Be a positive force in the organization to hear her podcast on leadership. U.S. demographics. “There are far more for her contribution to this story.

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