Spring 2005

Teaming Up The Right Stuff in Sports and Business

Plus—A Global View of Action-based Learning Excellence Has Its Rewards STEPHEN M. ROSS GIFT

KEY FACULTY AND TOP STUDENTS

#1 RANKING IN THE WALL STREET JOURNAL

#6 RANKING IN BUSINESS WEEK

Our commitment to excellence has produced great results, and our achievements have earned high praise.

With alumni support, we will remain a leader in business education. Your participation will provide additional resources for: • Real-world faculty research • Innovative classroom opportunities • Student financial support • Team-based learning programs

LEADING IN THOUGHT AND ACTION

Make your tax-deductible gift to the Ross School’s Annual Fund by using the attached envelope, calling 734.763.5775 or giving online at www.bus.umich.edu/annualfund. CONTENTS

FEATURES 20 What Do Football, Hockey and Bobsledding Have to Do with Executive Leadership? Former student-athletes and The Right Olympians say the qualities that spell success in the Stuff in Sports athletic arena apply in the and Business business world too. 22 Payback—Bill Martin’s 18 Rigor, Focus Business Acumen Spurs U-M All in a Day’s Work Athletics to New Heights for Student-athletes Michigan Athletic Director Bill Martin, MBA ’65, never Ross School athletes squeeze earned a varsity letter or classes, homework, training time aspired to a career in sports and competition into tight administration. However, the Ann Arbor banker and schedules and learn lessons real estate developer ranks about leadership, teamwork and among the world’s most time management along the way. influential sports figures. In a Q & A with Dividend, Martin discusses the payoffs of a business education and the satisfaction of

A Global View 28 Wanted: The Best of Action-based Learning and Brightest 32 Starting in fall 2006, the Embracing Hands-on Ross School will begin Experience admitting some students An ever-growing array of electives, directly from high school projects and internships gives MBAs into the BBA program. and BBAs career-shaping opportunities The change is expected to that add value in the real world while produce a larger, more testing business skills and stretching diverse pool of applicants. horizons. 38 Real-world International Assignments Test INTELLECTUAL Skills and Promote CAPITAL Entrepreneurship 8 Effective Corporate In the last decade, more than 1,500 Environmental Strategies MBA students have worked with entrepreneurs in Africa, China, Are Rooted in Public Policy Eastern Europe, Ireland and the Savvy companies Middle East. Read about these discover that corporate students, as well as the faculty and environmentalism— sponsors who work behind the scenes voluntary pollution to make International abatement—makes Multidisciplinary Action Projects and economic sense. the Global Projects course a success.

DIVIDEND 1 SPRING 2005 CONTENTS

DEPARTMENTS 14 Campaign School Needs $40 Million 3 Across the Board Dean: Robert J. Dolan More to Break Director of Communications: Cynthia Shaw A short news Ground on Executive Editor: Mary Jo Frank roundup, including $145 Million Ross School hires Class Notes and Copy Editor: Fred P. Wessells Building two new business Designer: U-M Marketing Communications and environment Three-quarters of the $100 million Photographers: Dwight Cendrowski, faculty…C. K. Stephen M. Ross, BBA ’62, D. C. Goings, Paul Jaronski, Steve Kuzma, Prahalad shares donated to the school last fall is Marcia L. Ledford, Linda Lutz, Joel Rogers, vision for ending poverty…newly earmarked for facilities. The Peter Smith, Brian Talbot, Randy Van Dam, updated World Tax Database… school looks to alumni, corporate Martin Vloet and Brad Whitford Wal-Mart CIO honored for partners and financing for the rest. Printer: University Lithoprinters leadership…Ebony editor gives MLK Day lecture…Detroit-area Vol. 35, No. 2: ©2005 alumni promote “leading in Stephen M. Ross School of Business thought and action”…and more. at the University of Michigan. 16 Alumni at Large This publication is produced twice a year by the Keeping a Office of Communications and made possible River Afloat through the generosity of private donations. 10 Faculty Research For more information, contact Dividend, A profile of Laura Stephen M. Ross School of Business Connecting with Rubin, MBA ’95, University of Michigan Consumers executive director of 701 Tappan, Ann Arbor, MI 48109-1234. the Huron River ✷✷✷ Advertisements that Watershed Council. are both original The University of Michigan Regents: and familiar attract Growing Companies One David Brandon, Laurence B. Deitch, Olivia P. the most attention Breakthrough at a Time Maynard, Rebecca McGowan, Andrea Fischer and improve memory of the Newman, Andrew C. Richner, S. Martin Taylor, brand, says Michel Wedel. A profile of Bill Baumel, MBA ’94, Katherine White; Ex-Officio Member, Mary a managing director of the RWI Sue Coleman, President, University of Michigan. Plus: Updates on performance of Group, a privately funded venture stock market buy recommendations capital firm. The University of Michigan, as an equal and how power affects self-identity. opportunity/affirmative action employer, com- plies with all applicable federal and state laws regarding nondiscrimination and affirmative 41 Alumni Activities 13 Quote Unquote action, including Title IX of the Education Club news from Amendments of 1972 and Section 504 of the Ross School of Busi- Austria, Chicago, Rehabilitation Act of 1973. The University of Michigan is committed to a policy of non- ness faculty provide China, India, discrimination and equal opportunity for all expert commentary Mexico, Minnesota, to media on every- persons regardless of race, sex, color, religion, New York, Seattle creed, national origin or ancestry, age, marital thing from breaking and Spain. news to business status, sexual orientation, disability or Vietnam- trends. Read about era veteran status in employment, educational who is saying what—and where. programs and activities, and admissions. Inquiries or complaints may be addressed to 44 Class Notes the Senior Director for Institutional Equity The goings-on of friends, classmates and Title IX/ Section 504 Coordinator, Office and colleagues. for Institutional Equity, 2072 Administrative Services Building, Ann Arbor, MI 48109-1432, On the Cover: 734-763-0235, TTY 734-647-1388. For other Sitting in the stroke seat directly behind the 52 Obituaries University of Michigan information call coxswain, Jourdan Lawlor, BBA ’06, sets 734-764-1817. the rhythm for Michigan’s rowing team at the spring 2004 national championships 56 Alumni Network Update Stephen M. Ross School of Business Web in Sacramento, California. site: www.bus.umich.edu PHOTOGRAPH BY JOEL ROGERS

DIVIDEND 2 SPRING 2005 TAXES World Tax Database: Across the Board The Definitive Source he newly updated World Tax BUSINESS + ENVIRONMENT $5 million gift. In 2000, the Erbs gave T Database created by the Office of an additional $5 million to the institute, Tax Policy Research (OTPR) at the Ross Two New Endowed a partnership between the Ross School School of Business is becoming the go-to of Business and SNRE. Dow Chemical source for journalists who need quick Professors Appointed and Holcim matched the second gift to access to tax facts, academics conducting ichigan has tripled the number of establish the professorships. tax-related research, policymakers seek- M endowed professorships in busi- Dean Robert J. Dolan said, “We try ing global or historical perspectives on ness and the environment from one to to work on the hardest problems in the legislation and citizens looking for tax three, solidifying its position as a world world. Fortunately, we’re not confined to information. leader in developing and teaching busi- the assets of the business school. Partner- The database ness practices that are environmentally, ing with SNRE, we have an unbeatable holds information socially and economically sound, said team to tackle the biggest issues.” spanning over 20 Thomas N. Gladwin, the Max McGraw Thomas P. Lyon, the Dow Chemical years for more than Professor of Sustainable Enterprise. Professor of Sustainable Science, 100 countries, Technology and Commerce, described including provisions his appointment as “my dream job” of tax statutes and because of its affiliation with the Erb revenue information Institute. Lyon’s research interests about corporate, include the interplay between corporate individual income MARTIN VLOET MARTIN strategy and public policy, including cor- and property taxes. porate environmentalism, electric utility It is considered the James R. Hines Jr. investment practices, natural gas con- most comprehen- tracting, innovation in the healthcare sive, systematic and sector and the introduction of competi- reliable source of tion in regulated industries. (See article quantitative infor- on page 8.) mation on trends Andrew J. Hoffman, the Holcim in international, Professor of Sustainable Enterprise, said national and indi- 15 years ago the notion of a business vidual state taxation. Barbara M. Erb and Frederick A. Erb, BBA ’47 professor studying environmental issues The World Tax barely existed. The rules of the game are Database is gaining Gladwin spoke at a November 1 din- changing, Hoffman said. “Business and popularity in other ner at the Michigan Union Ballroom environmental issues are overlapping. countries too, Joel Slemrod celebrating two new joint professorships Companies are searching for ways to including the at the Ross School and the School of minimize their impact on natural United Kingdom, France, Germany, Natural Resources and Environment systems.” Hoffman’s research deals Mexico, Italy and New Zealand, notes (SNRE): the Dow Chemical Professor with the nature and dynamics of change James R. Hines Jr., professor of business of Sustainable Science, Technology and within institutional and cultural systems, economics and research director of Commerce and the Holcim Professor which he applies toward understanding OTPR. Hines and Joel Slemrod, the Paul of Sustainable Enterprise. the cultural and managerial implications W. McCracken Collegiate Professor of President Mary Sue Coleman thanked of environmental protection for industry. Business Economics and Public Policy, Dow Chemical developed the database. Company, Holcim OTPR was established in 1987 to (US) Inc. and encourage and facilitate joint research on Frederick A. Erb, the tax system by economists and scholars BBA ’47, and Barbara of other disciplines and to be the liaison M. Erb. The Erbs on tax issues among the academic, busi- established the Erb ness and policymaking tax communities. Environmental You can find the World Tax Database Management Institute at the OTPR Web site, www.bus.umich. in 1996 with a edu/OTPR/.

Thomas P. Lyon Andrew J. Hoffman

DIVIDEND 3 SPRING 2005 ACROSS THE BOARD Prahalad, whose lecture was based on his book, The Fortune at the Bottom of MICHIGAN ON THE ROAD MCINALLY LECTURE the Pyramid: Eradicating Poverty through Profits, said companies must be innova- Alumni, Students and World’s Poor: tive and make fundamental changes in management practices to operate success- Corporate Partners A Source of Business fully in the world’s poorest regions. By doing so, they can generate profits and Come Together Innovation provide people entrepreneurial opportu- ean Robert J. Dolan has met with rofessor C. K. Prahalad used the nities that lift them out of poverty and D hundreds of alumni, prospective P 38th annual William K. McInally fuel growth at the bottom of the eco- students and corporate partners in cities Memorial Lecture to depict a revolution- nomic pyramid. across the country during the 2004-2005 ary and inspiring vision—a market- To tap into this market, Prahalad said, academic year as part of Michigan on the driven global economy capable of ending “You must start with imagination, not Road, an outreach program at the Ross poverty and empowering the world’s capital. You must believe the world can School of Business. poorest people while turning a profit. be a better place.” Prahalad, the Harvey C. Fruehauf Pro- The solution, he said, includes creat- fessor of Business Administration, told ing new distribution networks, forging a capacity audience in Hale Auditorium alliances between global corporations on September 14 that five billion people and local entrepreneurs, transferring worldwide live on less than $2 a day. local innovations to other markets, and Decades of subsidies, welfare and aid engineering products that are affordable, from governments, charitable agencies accessible and available to the poor. For and donor nations have not solved the example, single-use packages of com- problem, he said. Attempts to eliminate modities such as shampoo, salt and tea poverty through handouts cast poor sell for a penny in India. This innovative people as victims, crush their dignity marketing approach meets the needs of and ignore the fact that the bottom of low-income people and generates profits. the pyramid represents a potential “I don’t think the world’s poorest growth market of monumental size and populations are asking for a handout. significance. Nine poor nations—China, They’re asking for an opportunity,” India, Brazil, Mexico, Russia, Indonesia, Prahalad said. “It’s not all about money. Turkey, South Africa and Thailand— It’s about dignity.” Left to right, Melinda Murch, MBA ’04, MS have a collective population of three The McInally Lecture began in 1966 ’04, and Laura Whitridge, MBA ’04, catch up billion people and $14 to $15 trillion in memory of William K. McInally, who with Dean Robert J. Dolan in Boston. in annual purchasing power. The total served on the University of Michigan exceeds the combined Gross Domestic Board of Regents from 1960 to 1964. Starting in Boston last fall, the Product of Japan, Germany, France, Italy C. K. Prahalad signs a copy of The Fortune at Michigan on the Road crew—including and the United Kingdom. the Bottom of the Pyramid: Eradicating staff from Admissions, the Office of “The bottom of the pyramid is where Poverty through Profits, for Tom Hitchman, Career Development, and Development the opportunity is,” Prahalad said. “This MBA ’84, following the McInally Lecture. and Alumni Relations—traveled to may be a bigger opportunity than the Prahalad’s book was named the best business New York, Los Angeles, San Francisco Internet itself.” book of 2004 by Fast Company and Amazon and Detroit. Spring 2005 took them to and made Top Ten Atlanta and Chicago. Michigan on the lists compiled by Road events also are scheduled May The Economist and 10-11 in Dallas and June 21-22 in Barnes & Noble. He Minneapolis. participated in the “We piloted Michigan on the Road annual meeting of last spring in the Chicago area and found the World Economic it generated a great deal of energy among Forum in Davos, alumni. These regional events are part of Switzerland, in a broader effort to engage our alumni— January and is sched- our best ambassadors and salespeople— uled to speak at the in as many ways as possible in the life of World Business the school,” Dolan said. Forum being held September 13-14 at New York City’s Radio City Music Hall.

MARCIA L. LEDFORD

DIVIDEND 4 SPRING 2005 ACROSS THE BOARD sitive. The U.S. is important, but we aren’t the center of the universe. Under- tion and success, according to Dillman. standing and appreciating culture is LEADERSHIP AWARD “Remember that you own your career. important.” If you don’t like it, change it. Build rela- Beach Lin grew to appreciate the IT Innovator tionships, not with the political ‘players’ intricacies of international business but honest-to-goodness, two-way, shar- after she and her family spent three years Honored ing relationships with the people in your in Singapore, where she oversaw Asian organization,” she said. Mentoring is specialty wax operations for Allied Signal s a child, Linda Dillman dreamed vital to a successful career, she said, but (now Honeywell). A of becoming a beautician. Today a person’s mentor should be someone she is one of the world’s most influential you naturally connect with and not the MLK DAY businesswomen, leading the information product of a mentoring service. technology efforts of a $250 billion corporation. Bennett Says The executive vice president and chief WOMEN information officer of Wal-Mart Stores Inc. African Americans and a keynote speaker at the FuturTech 400 Attend Need to Speak with Conference was honored for her business Conference leadership and Their Wallets achievement in tep outside your comfort February with the “S zone,” advised Terrie Williams. his is perhaps the last call for the Ross School’s “Embrace the butterflies in your stom- “T dream,” said Lerone Bennett Jr., Women in ach. If there are no butterflies, you are writer, social historian and executive edi- Leadership Award, being pathetic or you’re flat-lining. The tor of Ebony magazine, as he encouraged presented by the butterflies mean you’re taking your game his Ross School audience to redouble Women in Business to the next level.” their efforts to improve human relations Initiative and Williams is founder and owner of a in America. Michigan Business publicity firm that has been called “the That dream, of course, is the vision put Women, a student most powerful black-owned public rela- forth by Dr. Martin Luther King Jr. more organization. tions firm in the country.” than 40 years ago. Bennett’s address on Linda Dillman Fortune maga- She and Sandra Beach Lin, MBA ’82, January 17 was part of the University’s zine, The Wall Street president of Alcoa Closure Systems 18th Annual MLK Day Symposium. Journal and leading industry publications International, gave the keynote addresses The collective gross national income of have recognized Dillman at the school’s 12th Annual Women Black America is more than $700 billion— for her work on the identification and in Leadership Conference in October, which, if Black America were a separate tracking technology known as radio which drew more than 400 students and nation, would make it the ninth-richest frequency identification. businesspeople. economy in the world, ahead of Mexico, Growing up in Indiana, Dillman’s When she started her company in Spain, India, Brazil and Australia. “We role model was a cousin who was a 1988, Williams compensated for her lack need to tell the giant that he is a giant, beautician. “She was the most successful of business experience by cultivating per- and to start acting like one,” said Bennett, woman in the family, and I grew up sonal relationships with people who had referring to the economic power of African wanting to cut everyone’s hair. But it the ability to help propel her career. Americans. By speaking with their wallets wasn’t long before I was encouraged by “Learn from your jealousies and and voting their convictions, African my teachers to do more,” she said. insecurities,” Williams advised. “If you Americans can have a great impact on their Dillman’s list of accomplishments examine why you’re jealous, the process economic and political future, he said. includes helping Wal-Mart develop what will tell you what your secret desires are.” “We have made enormous gains in is considered to be one of the world’s Beach Lin, who joined Alcoa in 2002, politics since the 1960s, but this has not most sophisticated information services said, “It is important to be culturally sen- destroyed visible institutional signs of networks. Before joining Wal-Mart 13 racism. The task at years ago, Dillman was with Hewlett- hand is dealing with Packard. She credits her move to this functional paradox Bentonville, Arkansas, with allowing her in the post-King to grow and develop her management world,” Bennett said. skills while keeping her interested and “So everything has motivated along the way. changed, yet nothing “I found that if I spent all my energy has changed. We haven’t doing the best I could on my own job, I reached a level of inte- was often asked to move up before I even gration of power, thought I was ready,” she said. money and resources. Taking control and making changes Another paradoxical Terrie Williams Sandra Beach Lin, MBA ’82 when necessary are keys to job satisfac- reality of 2005, accord-

DIVIDEND 5 SPRING 2005 ACROSS THE BOARD

Center for Urban Innovation at the School of Social Work. Carson compared the views of most foundations with his view of the way King lived. He cited lack Keith E. Alessi, MBA ’79 David A. Brandon of risks; uneasiness with commu- nity decision making; a quiet, students and businesspeople—including behind-the-scenes approach to issues; many would-be entrepreneurs—at and slow, incremental change as exam- Entrepalooza 2004, held at the school in ples of how foundations and philanthro- September. pists are not “walking Entrepreneurs often underestimate the Lerone Bennett meets Majaliwa DeRamus, King’s walk.” growth potential of the companies they MBA ’05, president of the Black Business “Dr. King recognized his own mor- found, thus creating rich opportunities Students Association. tality and that drove him,” Carson said. for savvy business managers who can “Foundations take refuge in their institu- make large sums of money by adding ing to Bennett, is that although there are tional immortality and that leads them value to the firms, Brandon and Alessi more educated and successful African to delay in taking action.” said in keynote addresses. Americans in today’s society, urban areas Carson discussed the responses of Brandon is chairman and CEO of continue to be plagued by poverty and foundations to healthcare, education Domino’s Pizza Inc., a member of the crime. and affir- University of Michigan Board of Regents To bring new vitality to urban areas, mative Emmett Carson and a member of the Ross School he said, a national development project action, Visiting Committee. aimed at the reconstruction of urban noting Alessi, chairman and CEO of Lifestyle America should be created, a program that even Improvement Centers LLC, the world’s similar to the Civilian Conservation though largest franchiser of hypnosis centers Corps of the 1930s. the to assist people with behavioral change, Bennett encouraged African Americans United teaches a popular MBA turnaround to take their ideas and talents into their States is management course at the school. He communities and cities. “Make yourself a the most also received the school’s 2004 Entre- committee of one. Mobilize and work as prosper- preneur Award. He and his wife funded an agent of change wherever you can,” ous the Keith E. and Valerie J. Alessi Courtyard, said Bennett, who has been at the helm country dedicated at the west end of the Ross of Ebony for more than 40 years and in the world, with the most advanced School campus in 1999. wrote Before the Mayflower: A History of medical care, many people lack health Alessi, who describes himself as “the Black America, 1619-1962. insurance. Only a handful of foundations sanitation department of the entrepreneur- support and advocate healthcare for the ial world,” explained how as CEO he FOUNDATIONS poor, he said. engineered the 18-month turnaround of Carson also addressed the interplay the public tax preparation firm Jackson Carson Urges of the criminal justice system and educa- Hewitt. The market capitalization of the tion, saying minority and poor children company went from $15 million to $468 Philanthropists to are undereducated by public schools and, million in one year. It was sold for cash at in many cases, disadvantaged by inade- the end of that year, 1998, to Cendant Corp. “Walk King’s Walk” quate parenting. “King would draw a Jackson Hewitt, one-tenth the size of link between the maintenance of a dys- H&R Block and the second-largest tax oundations and philanthropists must functional public school education and preparation service in the country, was a do more to keep Martin Luther King F the growth of prisons,” he said. franchiser with a strong relationship with Jr.’s dream alive, says well-known social Wal-Mart, which housed 400 Jackson activist Emmett Carson. Hewitt offices, Alessi said. Poorly run Carson is president and CEO of the ENTREPALOOZA and undercapitalized, Jackson Hewitt Minneapolis Foundation, one of the had a disastrous tax season in 1995. The nation’s oldest and largest community Entrepreneurs firm was hampered by a strong personal- foundations. Donors and funding part- ity cult centered on the founder, scat- ners contribute more than $30 million Often Underestimate tered focus and a board rife with politics. each year to local and national nonprofit By 1997, when Jackson Hewitt had organizations through the foundation. Growth Potential become profitable, the value of its stock Carson spoke in February at the second EOs Keith E. Alessi, MBA ’79, and had increased from $4 to $68 per share. annual “Celebration of the Life and David A. Brandon, superstars in the C The benevolent dictatorship with a Legacy of Dr. Martin Luther King Jr.,” lucrative turnaround management field, leader who can focus the organization sponsored by the Nonprofit and Public specialize in cleaning up after entrepre- is the best management style in a turn- Management Center, Ross School and neurs, the two told more than 380

DIVIDEND 6 SPRING 2005 ACROSS THE BOARD Michalak, a supervisor at Ford Motor Co.’s Scientific Research Laboratory, around situation, Alessi said. As part of work organizer, says, “The club likes to says, “Working with the Fowler Center Jackson Hewitt’s turnaround, the firm undertake projects that complement the gives me a different perspective on man- closed losing offices, drove down costs, school’s initiatives. The mantra of ‘lead- aging an operation.” restructured its board, focused on the ing in thought and action’ is relevant To learn more about the Detroit Club’s business basics of executing, measuring to what we are trying to do with this Nonprofit Board Network, contact and managing, and introduced stock program—help nonprofits improve Renaldi at [email protected]. options to motivate employees. their governance.” With stores in 60 countries and annual More than 80 business school alumni KUDOS sales of $4.5 billion, Domino’s relies have participated in club-sponsored, heavily on franchisees to drive the firm’s three-hour training sessions led by the White Named success, said Brandon, who engineered Nonprofit Enterprise at Work (NEW) the firm’s 2004 initial public offering and Center in Ann Arbor. President at as CEO of Valassis took the international “Our network has more than 20 marketing services and sales promotion nonprofits seeking candidates to fill University of Illinois company public in 1992. openings. We have made quite a few Joseph White, PhD ’75, former For Par Gandhi, MBA ’06, opportunities introductions, and although the process dean of the business school and to listen and learn from business leaders takes time, we already have alums who B. interim president of the University of like Alessi and Brandon are important to have accepted board positions,” says Michigan in 2002, was named the 16th his overall education. “I feel this is why Renaldi, principal of Cambia Managed president of the University of Illinois I’m here. One of my focuses is entrepre- Capital Advisory Inc. in November. neurship,” said Gandhi. For more about They include Anthony Crooke, “I am very excited about the opportu- Entrepalooza, sponsored each fall by the MBA ’92, sales representative of BGB nity to be president of the University of Samuel Zell & Robert H. Lurie Institute Communications, who joined the Illinois because everything I love about for Entrepreneurial Studies and the YMCA Camping Services Board; Ron higher education the University of Illinois Entrepreneur and Venture Club, visit Longhofer, MBA ’04, JD ’75, BM ’68, does on a large scale and with excellence,” http://www.zli.bus.umich.edu/ director of Stout Risius Ross Inc., who White said. The school has an annual events_programs/featured_event.asp. serves on the Plymouth Symphony operating budget of $3.3 billion, enrolls Orchestra Board; and attorney James more than 70,000 students, primarily Weiner, MBA ’86, a member of the SHARING SKILLS on campuses in Urbana-Champaign, Southeast Michigan Land Conservancy Springfield and (SMLC) Board. Detroit-area Alumni Chicago, and Weiner, who also holds an undergrad- awards 17,500 uate degree in chemical engineering, Serve Nonprofits degrees annually. was drawn to the SMLC because of its White described a ore nonprofit boards in southeast environmental focus and need for legal “resource gathering” M Michigan are getting a boost, assistance. The avid hiker advocates role for university thanks to the efforts of Ross School of reusing brownfields, restoring run-down presidents that has Business alumni and the Detroit Alumni cities and regulating development in out- become imperative Club’s new Nonprofit Board Network. lying areas to maintain greenfields. for excellence and The network matches the experience, Crooke, who has served on other non- success. “I enjoy skills and interests of alumni with non- profit boards, including that of a gifted- making the case profit organizations that benefit from children’s association in Los Angeles, B. Joseph White to our various sup- board members with business expertise. says that a nonprofit quickly can become PhD ’75 porters as to the Steven Renaldi, MBA ’95, past- a passion. The NEW Center stresses the vital importance of president of the Detroit Club and net- importance of working in an area that is the university to our state and our eco- important to you, says Crooke, for your nomic future. We know that educated good and that of the nonprofit. people are the key to a strong democracy Larry Michalak, MBA ’86, chairs the and key to a vibrant economy,” White said. board of the Fowler Center, a Mayville, White, who also served in two vice- Michigan-based nonprofit that offers presidential posts at Cummins Engine year-round outdoor recreational and Co. from 1981 to 1987, led the business educational experiences for people with school for 10 years, beginning in 1991. special needs, including mental, physical A native of Detroit and raised in and communication challenges, autism Kalamazoo, White earned an MBA from and traumatic brain injuries. He attend- the Harvard Business School and a BS ed a nonprofit training session held at degree in international economics at the the business school to learn about NEW Georgetown University School of Center resources and to develop contacts Steven Renaldi leads a discussion at a Foreign Service. Nonprofit Board Network training session. for new board members.

DIVIDEND 7 SPRING 2005 INTELLECTUAL CAPITAL

Effective Corporate VLOET MARTIN Environmental Strategies Are Rooted in Public Policy BY THOMAS P. LYON

Lyon holds the Dow Chair of Sustainable Science, Technology and Commerce at the Stephen M. Ross School of Business. His research explores the inter- Thomas P. Lyon play between business strategy and public policy and how it affects issues link between use of chlorofluorocarbons such as electric utility investment practices, natural gas contracting, innova- (CFCs) and depletion of the ozone layer tion in the healthcare sector and the introduction of competition in regulated over Antarctica. Some political reaction industries. Cambridge University Press published his new book, Corporate followed — CFCs were banned in aerosol Environmentalism and Public Policy, in October. It is the first book to provide sprays in 1978 — but chemical companies a rigorous analysis, rooted in economic theory, of voluntary approaches to successfully resisted more stringent regulations. The issue remained largely environmental protection. dormant for a decade, until hard evidence emerged that proved CFCs were damag- n recent years, companies have Whether the strategy is successful, ing the Earth’s protective layer. This been increasingly likely to voluntari- however, depends on whether it is built resulted in an intensified public outcry ly adopt measures to reduce pollu- upon a solid understanding of the public I ✷✷✷ tion— policy life cycle. Without this insight, a development that contradicts conven- managers are left to devise and carry out “In the end, research rooted in economic tional motives. Why, after all, would corporate environmental policies without corporations willingly accept the increased adequate focus. theory confirms that companies employ costs that accompany environmental corporate environmentalism to strategi- protection initiatives? The Unfolding Public In most cases, it’s Policy Life Cycle cally influence activists, legislators and because they are When it comes to chronic environ- regulators — and bolster their bottom line.” playing the public mental problems, the public policy ✷✷✷ policy game. process typically follows a consistent Voluntary pollu- course. Early on, the issue often is tion abatement— a ignored or unnoticed for long periods and political response. phenomenon called before advocacy groups organize and “When our country began to pass “corporate envi- mobilize. From there, public recognition environmental laws in the early 1970s, ronmentalism”— gradually grows as scientists, activists we did it issue by issue, crisis by crisis,” can preempt the and other opinion leaders debate the Carol Browner, former administrator adoption of issue, assess its importance and discuss of the U.S. Environmental Protection stricter govern- options for addressing it. It may take Agency, said in a 1994 speech. “I will ment regulations, years, however, for demonstrations, news never forget a photograph of flames, fire, influence the coverage, public discourse and scientific shooting right out of the water in down- shape environ- revelations to elevate awareness. Many town Cleveland. It was the summer of mental man- times, it takes a dramatic event or a crisis 1969 and the Cuyahoga River was burn- dates take as they are devel- to propel the problem past this stage and ing. An angry nation was called to action, oped and even deflect vigorous enforce- trigger widespread acknowledgement, and the Clean Water Act was passed.” ment of existing laws. Savvy companies concern and action. Browner went on to recite a litany of wield corporate environmentalism as an In 1974, for example, scientists for the similar scenarios. After thousands of bar- important part of their strategy. first time publicly contended there was a rels of toxic chemicals were discovered

DIVIDEND 8 SPRING 2005 INTELLECTUAL CAPITAL CORPORATE STRATEGY AND THE POLICY LIFE CYCLE buried beneath the community of Love (and described in detail in Corporate Canal, Congress passed the Superfund Environmentalism and Public Policy) law. The image of farmers shooting their found that states with high levels of contaminated cows fueled public pressure, toxic emissions and large membership which culminated in passage of the Toxic in environmental groups produced more Substances Control Act. Contamination voluntary pollution abatement. In these of New Orleans’ drinking water catalyzed states, the threat of mandatory regulation pressure for the Safe Drinking Water Act. was high and the marginal cost of self- For corporations, it’s much more dif- regulation was low, so voluntarily reduc- ficult to manage a public crisis than a ing emissions made good business sense. gradual buildup in public discontent. At This underscores a key finding of the the same time, empirical research shows research: A legitimate threat of regulatory that U.S. financial markets reward firms action often is required to induce com- that surpass legal requirements for the panies to voluntarily surpass minimum

reduction of toxic emissions and punish regulatory requirements. TOTAL EMISSIONS OF 17 TOXIC CHEMICALS VERSUS firms that generate unexpectedly high Environmental advocates, meanwhile, VALUE OF SHIPMENTS FROM SEVEN U.S. MANUFAC- levels of emissions. Voluntary environ- may accept self-regulation that achieves TURING INDUSTRIES, 1988–1992 mental protection, then, makes good less pollution abatement than regulatory business sense under certain circumstances. mandates would because they conserve When the protocol was renegotiated Governments of many nations, political capital and other resources when a three years later, the signers followed meanwhile, have embraced voluntary protracted public policy battle is avoided. DuPont’s lead and agreed to a full phase- environmental programs. This approach out of CFCs. reflects a belief that traditional regulatory Influencing Future This was precisely the outcome for measures can be costly, ineffective, Regulations which DuPont hoped. The company politically infeasible and difficult to imple- Even when legislation isn’t derailed, had invested heavily in an alternative to ment because their costs and benefits it can be influenced through corporate CFCs and was ahead of its competitors. are unclear and sources of pollution are environmentalism. This occurs in the By strategically maneuvering to have numerous and diverse. next stage of the public policy life cycle— CFCs banned, DuPont forced the indus- To navigate this course effectively, to when regulatory agencies draft the rules try to shift from a mature market where pinpoint the tradeoffs and tipping points, and procedures that dictate how a new it had low profit opportunities to a new managers must know where the environ- law will be enforced. market where it had a competitive mental issues linked to their companies For example, a firm may voluntarily advantage. reside on the public policy life cycle. invest in pollution abatement and lock They also must master the techniques for in a specific type of “green” technology, Deflecting Enforcement defusing these potentially volatile issues gambling that regulators will be unlikely of Existing Regulations before they escalate and produce pressure to write rules that would force the firm for stringent regulatory controls. Corporations also voluntarily reduce to make a costly change. In this way, the pollution to demonstrate a commitment company commits to a modest improve- to exceeding environmental standards. Strategic ment in an effort to prevent the regulatory Preemptive Action The goal is to convince regulators the agency from imposing a tougher, more company is in compliance and trust- One of the most effective ways for costly alternative. worthy—so they will target their moni- an industry to deflect pollution-control Under another strategic approach, toring and enforcement efforts on firms mandates is to reduce pollution voluntar- a company may invest in high-quality with lesser reputations. ily. This type of self-regulation induces environmental controls before new mini- The EPA’s StarTrack program environmental groups not to organize mum requirements are established—if it acknowledges — and leverages — the on a particular issue and may preempt can do so at a lower cost than competitors value companies place on deflecting passage of new government mandates— due to superior technical or managerial regulatory enforcement activities. which likely would be more stringent and skills. In this scenario, the goal is to Under this incentive program, firms onerous than the voluntary standards convince regulators that this high level that voluntarily increase their pollution adopted by industry. of pollution control is appropriate and controls are rewarded by being designated In the late 1980s and early 1990s, total affordable —so they will set standards that “a lower inspection priority.” emissions of 17 toxic chemicals declined place competing firms at a disadvantage. In the end, research rooted in markedly even as industrial productivity In 1987, the Montreal Protocol was economic theory confirms that rose (see chart above). These environ- signed by a group of countries agreeing companies employ corporate environ- mental gains did not result from govern- to reduce chlorofluorocarbon emissions mentalism to strategically influence ment regulation because the emissions by 50 percent by 1999. DuPont, the world’s activists, legislators and regulators — were legal. The reductions occurred largest producer of CFCs, unexpectedly and bolster their bottom line. through voluntary action. went a step further and announced plans Research rooted in economic theory to eliminate CFC production altogether.

DIVIDEND 9 SPRING 2005 FACULTY RESEARCH Connecting with Consumers

Is originality effective or distracting in advertising? Are bigger pictures better in print ads? How can corporations segment markets across borders? Business Professor Michel Wedel

employs disparate tools—from eye-tracking technology to D.C. GOINGS statistical and econometric methodology—to answer critical marketing questions. Michel Wedel

ompanies strive for originality in Belgium and the Netherlands con- brand name, trademark and logo. After- in advertisements to cut through ducted the first research exploring the ward, they assessed their subjects’ memory C the competitive clutter and cap- influence of originality on consumer of the advertised brands and products. ture consumers’ attention, but this tactic attention to advertising and memory of They found: raises questions: Does the novelty of an the advertised brand. Original advertisements draw more original ad detract attention from the They found originality works. attention to the brand. brand it is striving to promote? Do con- Working with Verify International, a When original ads become familiar, sumers quickly lose interest when an company in the Netherlands that devel- they “lower the threshold” for retriev- advertisement that relies on surprise, oped eye-tracking technology, Wedel ing memory of the brand. incongruity or humor becomes familiar? and his colleagues tracked the eye move- Advertisements that are both original If so, is the ad’s effectiveness diminished? ments of 119 consumers as they leafed and familiar attract the most attention Stephen M. Ross School of Business through a pair of mainstream magazines to the brand and improve subsequent Professor Michel Wedel and colleagues containing 58 full-page advertisements. memory of the brand. The sophisticated equip- “We found fairly clear and strong ment pinpointed precisely effects of originality on the attention where study subjects pattern itself,” Wedel said. “It also has a focused on the printed positive effect on memory — which is page every 50 millisec- even better news for advertisers. Memory onds. As a result, the is an important indicator of how effective researchers could deter- an advertisement is.” mine how much attention Wedel and his co-researchers defined was directed toward each original ads as unique, surprising and element in the ad—the deviating from the norm for the product, text, the graphic images the brand and the advertising medium. and brand cues such as Original advertisements typically com- bine familiar elements in unexpected Above, a reader leafs through ways, avoid obvious associations and a magazine as corneal reflec- stimulate new ones. They also vary in tion eye-tracking equipment their degree of originality. For this records the movement of her study, the researchers used ads featuring eyes. The Verify International “garden variety” originality, not extreme equipment pinpoints where originality. “That makes our results study subjects focus every more relevant for advertisers,” Wedel 50 milliseconds, enabling said. “Not everyone can create extremely researchers to determine how original ads.” much attention is directed Wedel, the Dwight F. Benton Professor toward various ad elements. of Marketing at Michigan, collaborated with Rik Pieters, professor of marketing Below, lines record eye move- at Tilburg University in the Netherlands, ment of a reader looking at a and Luk Warlop, associate professor of photograph of the late Marilyn marketing at the Catholic University Monroe, used in a print ad in Leuven in Belgium. Their study appeared Glamour magazine. in Management Science in June 2002.

DIVIDEND 10 SPRING 2005 FACULTY RESEARCH

Don’t Oversize the “The brand element is really crucial in the Segmenting Consumer Picture, Shrink the Text advertisement,” Wedel said. “Increasing Markets Across Borders or Hide the Brand the size of the brand element is the best in a Global Economy way to increase consumer attention.” Wedel and Pieters used eye-tracking Wedel took a different tack for a instrumentation again to study how research project on international market consumers’ attention patterns are affect- segmentation, which the Journal of ed by the size of each element in a print Marketing Research published in 1999— advertisement—text, pictorials and and five years later cited for its “signifi- brand. Their findings are important to cant, long-term contribution to market- marketers because changing an element ing theory, methodology and practice.” in an ad design may influence attention Historically, corporations have viewed to the other elements and to the entire nations as distinct markets and catego- ad. The study, published in the Journal rized consumers almost exclusively on of Marketing in April 2004, tested how the basis of the country where they lived. more than 3,600 consumers responded “That used to be good enough, but it no to 1,363 ads. longer is,” Wedel said, “because borders The researchers found the pictorial no longer exist to the same extent as they element of the advertisement is best at used to.” capturing attention—but increasing the Money, information, people and size of the picture does not improve its goods readily cross international bound- ability to grab consumers. This means aries today, Wedel points out, and glob- the picture is an important element in alization has influenced consumer the ad, but maximizing its size—a com- behaviors and attitudes in ways that tran- mon practice—is ill-advised. scend national borders. Consumers often The opposite is true for the text—the have more in common with people in more space it takes, the more attention other countries with whom they share it attracts to the advertisement. “This is demographic, lifestyle and consumer because an increase in text surface size traits than they do with people in their raises attention to this element much more own country. than it simultaneously reduces attention Wedel and his co-researchers validated to the brand and pictorial elements,” a statistical methodology to identify Wedel and Pieters reported. “Advertisers consumer segments across international aiming to maximize attention to the markets and develop, position and sell entire advertisement should seriously products across borders. As a result of consider devoting more space to text.” the team’s work, large food and pharma- The study addressed the amount of ceutical companies employ this model space dedicated to text; it did not today. The approach uses “means- account for font size, the number of end” chain theory, which, briefly said, words used or the amount of informa- Above, in this Del Monte advertisement, the emphasizes that product attributes tion they conveyed. brand mark plays a key role in routing the produce benefits that are, in turn, valued Some marketers fear that prominently reader’s attention. by the consumer. displaying brand elements will cause Wedel and his co-researchers found consumers to turn the page faster, but Below, a pixelated version of the advertisement this methodology accounted for different this study found otherwise. Increasing is used to test consumers’ memory of the Del response tendencies among consumers the space devoted to the brand does not Monte ad. in different countries and has high negatively influence attention to the ad. predictive validity. They also identified Even better for advertisers, attention cap- four international consumer segments tured by the brand is readily transferred In May 2004, Professor Wedel received the related to socio-demographics, consump- to the text and picture. “This runs counter business school’s Senior Faculty Research tion patterns, media consumption and to common beliefs in advertising prac- Award in recognition of the significance of his personality. “Means-end chain theory tice,” Wedel and Pieters wrote. “Attention published work. In August, he received the provides a conceptual basis for linking captured by the brand appears to play a William F. O’Dell Award from the Journal of the product and consumer in an inter- key role in routing attention through Marketing Research for making a “significant, national context,” Wedel and his advertisements.” long-term contribution to marketing theory, colleagues wrote, “which facilitates There’s another reason to be assertive methodology and practice.” successful product development and with brand elements: The authors found communications strategies.” in other studies that consumers’ memory Dave Wilkins of an advertisement improves when they spend more time focused on the brand.

DIVIDEND 11 SPRING 2005 FACULTY RESEARCH

50 basis points per month. Conversely, Buying Stocks? Advice downgrades to hold or sell issued by How Lonely Is It Quality Can Vary optimistic brokers outperform those of at the Top? Depends pessimistic brokers by an average of 46 Widely basis points per month. on Leader’s Motivation Lehavy examined the distribution of ndependent brokers’ stock ratings across buys, holds an pow- research firms’ and sells to determine what effect new erful I buy recom- stricter securities rules requiring brokerage C leaders be mendations outper- firms to disclose their stock ratings distri- in touch with form those of bution have had on analysts’ tendencies to everyday people, investment banks, issue more buy than sell recommendations. or are they isolat- says Reuven Lehavy, The study further shows that the per- ed and lonely at assistant professor centage of buy recommendations increased the top? It of accounting. substantially from 1996 to 2000, at depends on how A new study, co- Reuven Lehavy one point exceeding the number of sell deliberately one Fiona Lee authored by Lehavy, ratings by a ratio of more than 35 to 1 pursues power, found that from 1996 to mid-2003 buy (74 percent buys versus 2 percent sells). according to research by Fiona Lee, asso- recommendations issued by securities This practice, Lehavy says, appears to ciate professor of management and firms with no investment banking busi- have been an industry-wide phenomenon organizations and of psychology. ness outperformed the buys issued by used by the 10 largest investment banks, “Power affects your emotions and analysts at investment banks by an aver- which later were sanctioned by the SEC. behavior, and we want to examine how age of 8 percentage points annually. In Beginning in mid-2000, the percentage it affects someone’s self-identity,” says contrast, investment banks’ hold and sell of buys in the sample decreased steadily. Lee. “Does power make power-holders recommendations outperformed those By the end of June 2003, buys exceeded feel disconnected, do they have a harder of independent research firms by 4.5 sells by less than a 3-to-1 ratio (or 42 time relating to others and generally percentage points annually. percent versus 17 percent). The reduction become more lonely at the top? Or does Investment bank buy recommendation in the percentage of buy recommenda- power help power-holders feel like they underperformance was concentrated in the tions was most pronounced during the know everyone, can influence others to period after the NASDAQ market peak, last half of 2002, when the disclosure get things done and therefore feel more when it averaged 17 percent annually, note requirements went into effect. During connected to others?” Lehavy and University of California col- that time, the percentage of buy recom- The more you think about power, leagues. During this period the investment mendations decreased from 60 percent Lee says, the more likely you will dwell bank buy recommendations for firms to 45 percent, while the percentage of on how you can build relationships that have issued equity underperformed sells rose from 5 percent to 14 percent. with others and how other people can those of independent research firms by “This decrease probably was due, in help you get things done. In this case, a striking 22 percent annually, they add. part, to a worsening economy and a having power makes one feel more con- “These results suggest that the under- declining stock market,” says Lehavy. nected to others. performance of investment bank buy rec- “However, our findings strongly suggest Lee and Michigan graduate student ommendations was at least partly due to that the implementation of NASDAQ Brianna Barker worked with Larissa a reluctance to downgrade stocks whose Rule 2711 also played an important role Tiedens of Stanford University to learn prospects dimmed during the early 2000s in analysts’ decreasing optimism.” how power affects someone’s self-concept, bear market, as claimed in the Securities specifically examining whether it makes and Exchange Commission’s 2003 Global people feel more connected with others Analyst Research Settlement,” Lehavy says. Alumni: Special or more alone. The SEC and other regulators have Perk Available “Some people are in high-power jobs since mandated that 10 of the largest through Kresge Library but are not necessarily motivated by investment banking firms provide power,” Lee says. “They may not think independent research to their clients. he latest in cutting-edge business about how to gain and accrue power in In related research, Lehavy and T research, including full-text articles their everyday lives. For these people, colleagues have found that a broker’s in hundreds of popular magazines and having more power is related to feeling stock ratings distribution can predict journals, are available online to all Ross more disconnected to others. the profitability of its recommendations. School of Business alumni through a free “However, some people are interested Upgrades to buy coming from brokers service offered by the school’s Kresge in a job precisely because it affords issuing the smallest percentage of buy Library. power and influence. These individuals recommendations (“pessimistic” brokers) To receive e-mail tables of contents of are constantly thinking about how to use outperform those of brokers issuing the favorite publications, including Harvard their relationships to influence others; greatest percentage of buy ratings Business Review and magazines such as and having more power makes them feel (“optimistic” brokers) by an average of Fortune and Forbes, visit more connected to other people.” http://www.bus.umich.edu/KresgeLibrary/ Services/AlumniServices/.

DIVIDEND 12 SPRING 2005 QUOTE UNQUOTE t’ll be hard as hell to recruit directors “I after this. It’s already harder because of Sarbanes-Oxley, but if you add to that When people are asked how much they personal liability, the prospects for “enjoy spending time with their kids, they recruiting are going to be very grim.” think of all the nice things —reading them Jerry Davis, the Sparks Whirlpool Corporation a story or going to the zoo. But they don’t Research Professor and chair of Management and take the other times into account, the times Organizations, commenting on a WorldCom when they are trying to do something else class-action suit settlement calling for former WorldCom directors to personally compensate and find the kids distracting. shareholders who lost money in the accounting Norbert Schwarz, professor of marketing and of psychology, talking fraud case —a plan that later was withdrawn. ” — USA TODAY, January 7, 2005 about the Day Reconstruction Method, a research tool he and col- leagues developed to calculate how satisfied people are with their ✷✷✷ lives, and some of the researchers’ findings. — London Sunday Times, December 5, 2004 t turns out that the modern consumer “I is almost insensitive to income and whether or not he has cash on hand aybe they’ll end up talking think there’s a different mind-set because credit has been so available. So it “M about a number of alternatives “I now, a mind-set of lowered expec- seems to depend on, as far as we can tell, available, but I find it hard to believe at tations and also less of a sense of obliga- degree of satisfaction. If your satisfaction the end of this process they’re going to tion, if you will, between employer and goes down, you may hesitate a bit more scrap the income tax.” worker as a lifetime contract. So from as a consumer, and in the aggregate that a worker’s perspective, this has become shows up as a reduction in spending, Joel Slemrod, the Paul McCracken Collegiate a much less inviting marketplace of jobs. which directly affects economic growth.” Professor of Business Economics and Public It’s become one where you have to take Claes Fornell, the Donald C. Cook Professor Policy, predicting President Bush’s tax panel will much more initiative on your own.” recommend incremental change to the tax code. of Business Administration and director of —The Washington Post, January 8, 2005 Kenneth G. Lieberthal, the William Davidson the American Customer Satisfaction Index, Professor of International Business and profes- talking about what a recent drop in customer ✷✷✷ sor of political science, commenting on how satisfaction could mean for the economy. ll things being equal, a company Japanese workers are adjusting to new work- —The Atlanta Journal-Constitution, “A that sticks with one message is place attitudes. February 16, 2005 going to be more successful. Bush did —CBS News, September 5, 2004 ✷✷✷ an incredible job of packaging himself ✷✷✷ n mergers, there are often cultural as a defender of homeland security and clashes. There are reluctances on a person of conviction. He used all the laws ntrepreneurs are always question- “I both sides to integrate together. The of marketing. He stayed on point even ing why things are done the way “E biggest challenge facing management when it looked like he shouldn’t have.” they are. They are out there challenging everything just about all the time.” is merging the two corporate cultures. Christie L. Nordhielm, associate clinical professor Being large isn’t always better. It actually of marketing, analyzing the 2004 presidential Thomas C. Kinnear, the Eugene Applebaum can be very destructive if different parts election campaign. Professor of Entrepreneurial Studies and director are going in different directions.” — Chicago Tribune, November 4, 2004 of the Samuel Zell & Robert H. Lurie Institute E. Han Kim, the Fred M. Taylor Professor of for Entrepreneurial Studies, talking about what ✷✷✷ Business Administration and director of the drives entrepreneurs. Mitsui Life Financial Research Center, com- oor people want quality services, —Fortune, November 15, 2004 menting on the merger of Kmart and Sears. they want high standards for “P ✷✷✷ —The Detroit News, November 18, 2004 their products and they want them at an affordable price. This is a huge opportu- here’s a whole cottage industry of ✷✷✷ nity for businesses.” “T people selling this idea that there’s a crisis and that we’ve lost our values and ery sadly, we’re going to see fewer C. K. Prahalad, the Harvey C. Fruehauf Professor that we’re deeply divided as a nation. It’s “V independent stores in the future. of Business Administration and professor of not true.” To survive, they have to find a niche the corporate strategy and international business, bigger guys cannot offer or do not care talking about the potential purchasing power of Wayne E. Baker, professor of management and to offer.” billions of consumers at the bottom of the world’s organizations, professor of sociology and faculty Jie Zhang, assistant professor of marketing, economic pyramid. associate at the Institute for Social Research, commenting on how small shops must com- —The New Yorker, September 27, 2004 debunking the myth of a culture war in the pete against global companies. United States. —The Detroit News, December 21, 2004 — Detroit Free Press, January 28, 2005

DIVIDEND 13 SPRING 2005 CAMPAIGN mons will act as a hub for the life of the school, allowing those serendipitous encounters among students, faculty, staff and outside visitors that establish a sense School Needs of community and create a visible culture at its center,” Dolan says. Dolan, Andreasen and members of the $40 Million More business school development team are in preliminary discussions with a handful of donors at significant levels, talking about how to move the project forward. to Break Ground on “This spring we are working with the architects to identify giving opportunities within the building. Then we’ll be asking $145 Million Building many of our alumni to consider a gift they can make over the next several years. I’m encouraged and confident about the history-making $100 million gift environment of business education, top success of the overall campaign,” says from Stephen M. Ross, BBA ’62, schools earn their place by providing Andreasen. A for facilities and endowment high-quality facilities that outstanding The new facility is part of the school’s has created an opportunity and challenge students and faculty expect. New facilities eight-year, $350 million campaign called for the Ross School: to raise at least will help us maintain our high standing The Michigan Difference: Leading in $40 million more for new facilities to sup- and create an optimal environment for Thought and Action, which started in port its unique, action-based curriculum. our distinct, team-based learning that 2000. So far, $245 million has been raised. “This facility depends completely on bridges theory and practice.” “We’re certainly ahead of the game, additional gifts. It just won’t happen Business education has undergone a thanks to the incredible vote of confi- without them. We’re trying to do some- fundamental change from lecture-style dence by Steve Ross,” Andreasen says. thing extraordinary,” says Michael classes to a format that integrates discus- In addition to funds for facilities, Andreasen, assistant dean, Development sion and teamwork and relies on “many major multi-million-dollar gifts and Alumni Relations. advanced technology, explains Dolan, are being secured and given in support of “Raising funds for a who launched a strategic facility normally would planning initiative in July take several years, but 2003 that called on faculty, because of Mr. Ross’ students, alumni and staff Campaign Goal tremendous gift, we are to define the school’s infra- STEVE KUZMA trying to do it in a year. structure needs well into the and Priorities That kind of challenge 21st century. Intellectual Capital $60 million is the kind the Ross New facilities will include Endowed Professorships School of Business 85-seat, U-shaped classrooms Clinical Faculty likes to take on,” says with tiered seating and adja- Research Funds Andreasen, who joined cent small-group discussion the school in 2003. areas, a configuration that Innovation in Business Education $25 million The University of will facilitate a seamless tran- Core Curriculum Michigan Board of sition from formal class work Cutting-edge Electives Regents approved the to team interaction during a Michael Andreasen Scholarships school’s $145 million single class session. plan for new state-of- Additional enclosed group Co-creation of Educational Opportunities $20 million the-art facilities and hired Kohn Pedersen study rooms—each seating six Interdisciplinary Institutes and Centers Fox Associates PC (KPF) of New York to eight students and equipped Student/School-designed City as project architect in February. More with integrated presentation Educational Experience than half the cost of the project will be technology and network funded by $75 million of the Ross gift. access—will be distributed Connecting Theory and Practice $25 million Although University officials have said throughout the complex to Field-based Experiences for Students financing a portion of the building is a provide students and faculty Center for Action-based Learning possibility, Andreasen says, “We also space to continue team proj- have to raise significant gifts.” ects beyond the classroom. “New spaces configured to our needs In addition, informal Facilities $120 million and enhanced with the best in technology student gathering areas will Discretionary $50 million will enable us to realize the learning provide community space in Bequests $50 million community of the future,” says Dean the center of the Ross School Robert J. Dolan. “In the competitive campus. “A student com- Campaign Goal $350 million

DIVIDEND 14 SPRING 2005 CAMPAIGN Kohn Pedersen Fox: A World-class Firm

ohn Pedersen Fox (KPF), based in New York City, has K designed major buildings around the world, including academic facilities, corporate headquarters, gov- ernment offices, retail buildings, muse- ums, airports, hotels and hospitals in addition to a variety of master planning work. “KPF is an internationally renowned firm with a great deal of experience in design for colleges and universities, including the business schools at Wharton and Stanford, as well as the Institute of American Studies at Oxford and the London School of Economics,” said Timothy Slottow, University of Michigan executive vice president and chief financial officer. “Using a needs-based approach, KPF has had tremendous success in integrat- ing new and existing buildings into a cohesive framework that meets the needs of its stakeholders.” Michael Andreasen, assistant dean, Gathering areas such as the one above will provide community space in the center of the Ross School Development and Alumni Relations, campus and give students, many of whom spend most of their days at the school, a place to eat, anticipates detailed renderings of the study, relax or meet with faculty, staff, alumni and visitors. proposed new facilities, complete with naming opportunities for classrooms, faculty, students and programs,” says “Clearly Dean Dolan’s strategy for the student gathering spaces and the build- Andreasen, citing a recent $3 million gift school around intellectual capital, innova- ing, will be available this summer. from Stanley Frankel, AB ’63, MBA ’64, tion in business education, co-creation and To read about KPF, visit and his wife Judy in support of action- action-based learning is a critical element based learning; $4 million from Samuel for a successful campaign,” Andreasen Zell, AB ’63, JD ’66, to expand the says. Fundraising campaigns also provide endorse and support what you’re doing Samuel Zell & Robert H. Lurie Institute an opportunity to engage volunteers in and we’re going to demonstrate that by for Entrepreneurial Studies; and $5 mil- boards, alumni club leadership and our philanthropic contribution.” lion from Sanford Robertson, BBA ’53, regional activities to tell the school’s story. Every gift, whether $100 or $100 million, MBA ’54, for the dean’s priorities. Volunteers—members of the school’s affects students, faculty and programs, “We have a tremendous alumni group, Alumni Society Board of Governors, says Andreasen, citing Annual Fund 36,000 strong. With the recent integration Corporate Advisory Board and Visiting support for Professor C. K. Prahalad’s of Alumni Relations and Development, Committee—are critical to the campaign’s Experimental Multidisciplinary Action we’re meeting alumni across the country success. Dolan also is being advised on Projects, which resulted in a highly in a way that we have not been able to key issues by Campaign Cabinet members acclaimed book. “Those who are helping do in the past. We have met with several Mary Kay Haben, MBA ’79, of Northfield, us with endowed scholarships in the hundred alumni in the last six months, Illinois; William K. Hall, MBA ’67, PhD $100,000 range are allowing us to recruit many of whom are loyal, interested and ’69, of Skokie, Illinois; Michael Jandernoa, the very best students,” Andreasen says. engaged but just have not been encour- BBA ’72, of Grand Rapids, Michigan; The school’s $350 million goal is a aged to participate,” says Andreasen. Ralph Johnson, MBA ’92, of Cleveland; challenge, he says, “and certainly not Universities have fundraising campaigns Jacquelyn A. Levin, MBA ’87, of Wildwood, a walk in the park. We want to inspire for a number of reasons, including to Missouri; Timothy O’Day, MBA ’80, ourselves and inspire others. Steve Ross’ sharpen their focus and message inter- of Chicago; Jeff Rich, BBA ’82, of Dallas; extraordinary vote of confidence has nally, says Andreasen, who has worked and Robertson of San Francisco. given us an even greater expectation.” as a fundraiser for more than 15 years, “In communicating our story to our To learn more about the school’s fund- including at the University of California, alumni, corporate partners and friends, raising campaign, visit http://www.bus. Santa Barbara and Irvine, and at the we uncover the next generation of umich.edu/MBSCampaign/ or call American Film Institute. donors—people who say we agree, 734.763.5775.

DIVIDEND 15 SPRING 2005 ALUMNI AT LARGE dedicated people. from protecting open space “However, Greenpeace was and fighting pollution to res- growing in every direction, cuing a pond that’s choked giving little thought to tradi- with weeds. Keeping a tional business practices like “Growth is the biggest strategic planning and human threat facing the watershed. resources.” We estimate that two-thirds She decided to pursue of our wetlands are being lost River Afloat graduate school at the time to housing developments and when the business school and other new construction. The LAURA RUBIN, MBA ’95 School of Natural Resources source of water pollution and used to be an unregulated Environment plant dumping sewage or (SNRE) were manufacturing by-products. creating their Now, pollution is likely to Corporate be caused by nutrients and Environmental chemicals used to clean dishes Management and fertilize lawns that wash Program off grass and pavement into (CEMP). Rubin the storm drains and the became the first ✷✷✷ CEMP gradu- ate, earning “Because it’s a relatively an MBA and an MS. Today small business, I am involved CEMP, part in management, marketing, of the Erb Environmental accounting and fundraising.” Management ✷✷✷ Institute, is

PETER SMITH the largest and Huron River. most integrated “Our mission is to protect aura Rubin, heavy on programs but program of its kind in the the Huron and change atti- MBA/MS ’95, cares lacked infrastructure. She nation, but in 1992 many tudes and behaviors through L deeply about natural created financial and opera- people did not know what to education, conservation and spaces, wetlands and water tional policies and procedures, make of the hybrid. “To busi- technical assistance.” quality. She also relishes “sit- increased staff, expanded ness students, I was an envi- The mother of Abe, 6, and ting down to a good budget programs and visibility, and ronmentalist. At SNRE, people Leo, 4, likes working at the and making the columns tripled the operating budget. wondered why I was interest- local level. “Raising a family, match.” As executive director Rubin also directs all scientific ed in something as mercenary it’s important to me to be of the Huron River programs and works with 39 as business,” she recalls. part of a community. It’s Watershed Council (HRWC), local governments, 550 individ- Attitudes are changing rewarding to see the impact Rubin has found the ideal ual members, 55 business with growing awareness of of a local ordinance, to reach balance, merging business partners and nearly 500 environmental sustainability across political boundaries to savvy and a passion for the volunteers. issues. In the vanguard, protect a shared resource.” environment. “I’ve never wanted to be Rubin served as an economic Although her experience has The Huron River Water- narrowly focused,” she grins. and business development been in nonprofits, she can shed, which covers 910 Rubin’s career path began adviser with a Navajo reser- “just as easily imagine being square miles, is Michigan’s after college, when she deferred vation and as a technical part of a corporation, ensur- cleanest urban river and the an offer from Arthur Andersen project manager with Ann ing that it is environmentally main source of drinking water in favor of Greenpeace. Arbor’s Industrial Tech- responsible. What matters is for the City of Ann Arbor. Within four years she was nology Institute. Her work that the job reflects my values The watershed is home to directing the nonprofit’s with the HRWC has pro- and provides challenge as more than 500,000 people. Ocean Ecology Campaign, duced the broadest challenges well as a sense of purpose. The HRWC, formed in overseeing 30 staff through- and most satisfaction. My business degree continues 1965, is the oldest and one out the country. “Because it’s a relatively to make this happen.” of the Midwest’s most highly “Organizing, lobbying, small business, I am involved regarded river protection educational outreach—it was in management, marketing, Pat Materka agencies. Six years ago, when a tremendous learning expe- accounting and fundraising,” Rubin arrived, HRWC was rience. I worked with vibrant, Rubin says. “We address fas- cinating problems ranging

DIVIDEND 16 SPRING 2005 ALUMNI AT LARGE and proposed complementary products and services.” Launched in 1998, Magnet brought in a million in rev- Growing Companies One enue its first year, three mil- lion or so the second, seven the next. It continued its Breakthrough at aTime climb and was purchased by Digital Insight Corp. in 2004. Baumel has been an BILL BAUMEL, MBA ’94 investor, participant or board member with more than a and more dozen companies, including steady revenues serving as initial CEO and are already in then chair of Optical Solutions. place. His business acumen In a nutshell: emerged early—he had a “We search for lawn-mowing business as a a strong, differ- teenager—and prospered at entiated product, the University where he a market that became associate director of makes sense Professor David Brophy’s and a manage- ✷✷✷ ment and tech- nical team with “New technologies must a proven track record. When come to market. The you find a com- opportunities in venture pany with that profile, you capitalism keep coming.” D.G. GOINGS exercise due ✷✷✷ diligence, invest lick on the RWI ing something that already and then work on the board Office for the Study of Private Group Web site and exists is less interesting to me to make the company suc- Equity Finance. C the first thing you than building from scratch. cessful. You typically work He enjoys the eclectic see looks like an insect from “Early-stage companies with and guide the company nature of his profession, outer space. In fact, it’s a have a high level of energy and until there is a positive liq- which combines analytical, Royal Wulff fly fishing lure, entrepreneurial spirit,” he uidity event, either through investing, marketing, consult- the trademark image from continues. “You’re develop- acquisition or an IPO.” ing and investment banking which the venture capital ing a product, exploring new He makes it sound so easy. skills. At home in California, firm derives its name. markets, increasing the revenue Yet that is exactly what his focus turns to family “Growing companies, like fly and employee base. It’s all happened with Magnet activities with wife Jill and fishing, takes strategy and about growth and achieving Communications Inc., which sons Tommy, 7, and Scott, 5. patience,” Bill Baumel, MBA profitability with the minimum provides online banking soft- Having weathered 2001– ’94, explains. cash necessary. You’re work- ware to financial institutions 2003, when dot com failures, As a managing member of ing toward a positive — and serving corporate clients. corporate scandals and ter- RWI, he searches out “new potentially life-changing — “Magnet was founded by a rorism dashed investor confi- breakthrough technologies that outcome for all involved.” core group at a Georgia Tech dence, Baumel is optimistic. can displace current offerings Baumel averages one or two incubator that had developed He sees a return to rational, by being better, faster and new investments per year and similar software for main- steady investments, particu- cheaper, or technologies that is typically active in five or six frames and client server com- larly in medical devices, net- create a whole new market.” companies at any one time. puting environments, and was working and semiconductors. Baumel chose venture He is more intensely involved now doing it in the Internet “There is always a product capital as a career, leading with the early-stage companies, world,” Baumel relates. “We that needs to be introduced investments ranging from guiding them through strate- funded them and helped or improved, or a new service rambunctious start-ups to gy building and hiring deci- them fill out the management to be offered,” he declares. large established firms. sions — even the logistics of team, including a CEO, “New technologies must come “With large organizations, finding an office and buying CFO and vice presidents of to market. The opportunities you often look to streamline equipment. Established com- research and development in venture capitalism keep the operation and cut costs. panies require less hands-on and sales. We referred them coming.” Reformulating and rightsiz- input because a proven CEO to online banking customers

DIVIDEND 17 SPRING 2005 RIGOR, FOCUS All in a Day’s Work for Student-athletes

David Anving BBA ’05

eing a student in the Ross School and the skills they’ll need for the careers be worthless the next day in class and at of Business requires vision, focus, they envision. practice,” she says. “Sometimes it’s better B perseverance, balance, self-disci- Ten Ross students, in both the BBA to put yourself to sleep than get another pline, hard work, surmounting obstacles and MBA programs, compete in nine two hours of reading in.” and working with diverse groups of peo- different sports: two in tennis, and one The bottom line, according to Lawlor: ple. So does being an athlete wearing the each in basketball, baseball, water polo, “You just try to squeeze everything in as colors of the Maize and Blue. wrestling, ice hockey, track and field, much as possible while still trying to get Either role is supremely demanding, rowing and soccer. Some are stars, six hours of sleep every night.” so imagine filling both. Yet the Ross stu- others play rarely. Some are nearing Even “down time,” much less recre- dents who don’t have to imagine that— their degrees. Others are just starting ational activity, has to be scheduled, and because they’re doing it—are finding a out. Some already have had considerable Ross athletes have found that it’s vital to strong correlation business experience. Others haven’t. do so. Says David Anving, BBA ’05, of between what it The common denominator for them is Tvaaker, Sweden, “You have kind of a takes to succeed in how well the qualities that spell success tank with energy, and when it’s empty their double lives in the athletic arena travel to the business you have to do something else besides

MARTIN VLOET MARTIN world and, often, vice versa. playing tennis or studying.” Jourdan Lawlor “I really don’t have many gaps in my “Sometimes you just don’t have BBA ’06 schedule,” says Jourdan Lawlor, BBA enough time for everything,” says hockey ’06, of Dexter, Michigan, a member of player Reilly Olson, BBA ’05, of Grande the women’s rowing team. “People in my Prairie, Alberta, Canada. “I’ve been in a classes complain about being up at 8:30 position where both my hockey and my and I say, oh, you don’t even know. schooling have suffered. It’s very tough Today I started at 5:30 and I have a mid- to balance them both. I’ve become very night deadline for a business statistics good at managing my time, but it defi- group project. I’ll probably be up until then finishing it. I only had an hour-and- a-half gap my whole day.” Megan Hausmann, BBA ’06 The time athletes spend on the road exacerbates the difficulties. “It’s real easy to say I’ll study on the bus,” says soccer player Jeff Mirmelstein, BBA ’05, of Indianapolis. “But with movies constantly playing and people socializing and stuff, it’s not always the best environment.” And proper management includes bal- ance, according to Megan Hausmann, BBA ’06, of San Diego, who’s in her third year on the water polo team. “You can’t wear yourself out to the point that you’ll LINDA LUTZ

DIVIDEND 18 SPRING 2005 nitely wasn’t an overnight process.” honors for the 2003-04 season. Wrestler Those small compromises seem to be Ryan Bertin, BBA ’05, of Broadview worth it in the big picture. “I’m very glad Heights, Ohio, has twice been an NCAA I played soccer while I was in school,” says All-American and won the national Mirmelstein. “My academics might be a championship in his weight in 2003. Ali little bit lower than they would have been Husain, BBA ’06, of Ypsilanti, Michigan, otherwise, but I think what I’ve learned who pitches for the Wolverine baseball outside the classroom is at least as valu- team, earned the Steve Boros Award as able as those couple of tenths of a GPA.” its top student-athlete in 2004. Distance Indeed, the recruiters who ranked runner Lindsey Gallo, BBA ’04 and Ross tops in the country in last fall’s Wall MAcc ’05, of Howell, New Jersey, is a Street Journal/Harris Interactive survey two-time NCAA Indoor All-American said one of its students’ most attractive and has been named to the Academic qualities is their well-roundedness. All-Big Ten Conference team three years Mirmelstein saw that for himself. “Even in a row. if it was nothing more than, ‘oh, wow, As far as leadership is concerned, it’s you play soccer, that’s impressive,’ that especially telling that Bertin captains his was almost always the first thing team and Anving and Gallo are co-captains recruiters noticed,” he says. Given that of theirs. And in the hopes of literally student-athletes have to be as efficient wedding their skill sets, Hausmann envi- in job-seeking as they are with the rest sions representing professional athletes, of their schedules, such quick, favorable and Husain expects to represent himself impressions are even more valuable. Jeff Mirmelstein, BBA ’05 if he’s drafted by a major league team, The ability to work within a team which is not out of the question. framework was widely cited by Ross in business school, business school also “Be my own agent? Absolutely,” says athletes as a significant crossover skill forces you to be a leader and take charge Husain. “I want to save that 5 percent for between athletics and the school. “The in group settings, and I think that can myself. I’m taking a law class right now; leadership you learn from being on your transfer over back into your athletics.” hopefully that will help me out.” team is just unparalleled on the collegiate Mirmelstein credits the Michigan Hausmann is also contemplating law level,” says Lawlor. “You learn to work men’s soccer team’s rapid rise (it finished classes. “It’s always been my dream to be with many types of people; I’ve had the 2004 season, only its fifth as a varsity a kind of a ‘Jerry McGuire’ sports agent,” teammates from Canada, Brazil, sport, ranked seventh in the country) to she says. “I want to be in the sports busi- Germany and Norway, and working with a ground-floor emphasis on teamwork ness, you know?” people from different cultures is some- by Coach Steve Burns. “The thing you need in the business world.” coach didn’t only recruit the With the school’s emphasis on team athletes, but he also recruited projects, there were times when Lawlor people who would work well almost felt like a missionary. “By the together and work for each time an athlete makes it to a collegiate other,” says Mirmelstein. varsity team, everybody has a really “I think he did a really good great sense of that self-sacrificing team job recruiting a team as mode, but most of the people in the busi- opposed to a group of indi- ness school are so Type A,” she says. viduals, and that in the long “They’re not used to working in teams, run is what made us very and that imposes a whole bunch of new successful.” challenges for someone who’s been As diverse as their back- immersed in the team setting for almost grounds, sports and aspira- eight years.” tions are, success is the com- Some see a kind of mon denominator for Ross cross-fertilization, with student-athletes, lending cre- Ryan Bertin, BBA ’05 the learning curve flow- dence to the adage that “if you want ing in the other direction. something done well, ask a busy person The demands of their regimens “Obviously, in group set- to do it.” notwithstanding, all Ross student-athletes tings, there are always Mirmelstein is a three-time Academic seem to be doing quite well, thank you. people who take charge All-Big Ten Conference honoree. Lawlor Maybe it’s because they know no other and people who are fol- has been named a Collegiate Rowing way. “I’ve never been in a situation lowers,” says Hausmann, Coaches Association National Scholar- where I didn’t have classes and practice “and I think athletes are Athlete in recognition of her high GPA every day,” says Gallo. “I don’t know very much leaders. But and rowing in the team’s first-string boat how else to be a student than to be a I think in the same way for 80 percent of the season. Anving student-athlete.” that athletics helps you earned Academic All-Big Ten Conference Jeff Mortimer

DIVIDEND 19 SPRING 2005 What Do Football, Hockey and Bobsledding HAVE TO DO WITH EXECUTIVE LEADERSHIP?

on Johnson, try to teach our student-athletes here Red Berenson, BBA ’62, MBA ’66 R BBA ’69, says that business is not unlike what you’ve business school gave already gone through in college. You about not being able to earn a living.” him options at both have to work at it every day, you have to Nor need he have. He’s now the presi- the beginning and practice your trade and you have to be dent of Rackson Corp., a Totowa, New end of his profes- prepared when it’s time to step onto the Jersey, firm that owns 24 Kentucky Fried sional football field of competition. Many of the princi- Chicken stores in three states. “I couldn’t career that most ples that guide us in athletics—in terms crack an egg open, I knew nothing about athletes don’t have. of teamwork, in terms of execution, in cooking, but I knew I could run a franchise Red Berenson, terms of how you model performance— when I got my first one,” Johnson says. BBA ’62, MBA ’66, are the same things that good businesses Berenson went straight from his final Ron Johnson says that business and good leaders use every day.” game for Michigan, where he was an BBA ’69 school directly con- After earning both football All-America All-American and team captain, to the tributed to his suc- honors and his degree at Michigan, first game of his 17-year playing career cess as both a hockey player and coach. Johnson, a first-round draft pick, found in the National Hockey League, where Warde Manuel, MBA ’05, says busi- himself at an impasse in negotiating his he was voted Coach of the Year after ness school is teaching him perspectives first professional contract. “We just moving from the ice to the bench. He’s as a college athletics administrator that couldn’t come to terms,” he says. “I don’t now in his 21st season as Michigan’s he didn’t learn from being an athlete. know whether the team thought I was coach and has won two NCAA titles with However different the paths they’ve bluffing or not, but I told my agent to tell the Wolverines. followed, Ross alumni and Executive them I might just go right on to graduate “I’ve always felt that going to the busi- MBA students who also have succeeded school and not play professional football ness school helped me as an athlete,” he athletically are unanimous on one point: at all. I was honestly willing to do that, says. “I thought I was a step ahead in my The right stuff in sports is a lot like the and it’s all because of my experience financial decision making and invest- right stuff in business. at the business school. I cannot tell you ments because of my experience in the Says Manuel, an associate director of the strength that experience gave me in business school. Then, as a coach, I don’t athletics at Michigan who played football living my life.” think there’s any question that running for the Wolverines in the late 1980s: “We It served him well again when, at a team feels like running a business— the age of 28, he decided to retire after although a not-for-profit—in terms Warde Manuel, MBA ’05 a distinguished seven-year career in the of our public relations, our marketing, National Football League. where we’re spending our money, where “The business school we can generate more money. One of my experience that I had goals when I came back as a coach was to gave me the confidence, make the hockey program self-sufficient and probably the arro- financially, and we’ve done that.” gance, to say I don’t need Although Manuel, who holds two to play football in order other degrees from Michigan—a bache- to live a good life,” lor’s degree (psychology major) and Johnson says. “And I was master’s degree in social work—is quite able to walk away from eloquent about the value of athletic football. You see too experience in the business world, he found many other guys who that his experience in the Executive MBA stay out there and say, program definitely filled in some gaps. ‘What am I going to do “The business school has taught me the after football? I don’t importance of solid preparation, that know what to do.’ I never you have to understand every aspect of had any concerns at all a problem,” he says. “You would think

DIVIDEND 20 SPRING 2005 that athletics does long-term plans and goals versus execu- that, but as an ath- tion of daily tasks. Grand goals and lete, I learned the schemes never come to fruition if you defensive end posi- don’t take the baby steps to get there.” tion. I didn’t learn Perhaps ironically, the one experience a holistic view.” that every athlete must deal with is con- Jeff Benz, MBA ’06 Jeff Benz, MBA sidered by many of them to be the most ’06, also sought a instructive. That would be losing. broader context through the school’s Of all the lessons he learned as a Executive MBA program than his sport Michigan hockey player that later proved had given him. A former member of the useful in business, Mark Sorensen, MBA U.S. Figure Skating Team, he has served ’05, sales and managing director for since 2001 as the U.S. Olympic Committee’s Miomed Orthopaedics in Illinois and general counsel and managing director Indiana, says, “Coping with adversity of legal and government affairs. “Figure would be number one. Having dealt skating is inherently an individual sport,” with that through sports has really he says. “There is no competitive benefit enabled me to strengthen my adversarial to competing or training with team mem- skills when it comes to business. You bers. Part of the reason that I wanted to can’t give up just because the mountain attend the Executive MBA program is I’d appears to be too high.” grown up in this individual sport and I was Barry Klein, MBA ’06 “It’s been overused, but you learn a in a profession that is notoriously indi- heck of a lot more from your failures vidual, so I wanted to benefit from the in business, and you learn that pretty than you do from your successes,” teamwork approach to problem solving much in all sports. But some sports facil- says Laurence Saul, MBA ’03, vice that the Ross School of Business offers.” itate the capacity to create teamwork or president of Europe, Africa and the Professor Robert Quinn’s analysis of interdependence more than others. It’s Middle East and managing director of leadership styles applies to the points that not automatic that an athlete can do that. the Netherlands for Manuel and Benz make. “A few years ago, I would say athletics is great preparation Domino’s Pizza [Professor] Gretchen Spreitzer and I did for business, but not every athletic expe- International. a study that found two systems of high rience is equal.” Saul, a graduate performance in terms of leadership,” One of those former athletes whose of the school’s first says Quinn, the Margaret Elliott Tracy sport cultivated individual achievement Executive MBA Collegiate Professor in Business Adminis- is Barry Klein, MBA ’06, a five-time class, was a member tration and professor of management and national rowing champion and a mem- of the U.S. bob- organizations. “One was the assertive, ber of the U.S. Olympic Team. “I think sledding team individual achiever, sort of the classic the biggest thing I learned from rowing after completing American model of the aggressive leader was discipline,” says Klein, senior market his undergraduate who is smarter than everybody else and development manager for pharmaceu- degree at Cornell, Laurence Saul works harder than everybody else and gets tical giant GlaxoSmithKline and an but it was his high MBA ’03 up there and drives through walls and Executive MBA student. “Being disci- school wrestling demands that other people do the same. plined to stay on a schedule, to do some- coach who facilitated Then there was a second, very different thing every single day so you’re working this particular lesson. image we called collective fulfillment. through not only the fun times but the “I wasn’t a heavyweight, but we had a These people had an enormous sensitivity low times and the mundane times, taught rotation where I had to wrestle the heavy- to the team of people working together, me a work ethic.” weight in practice,” he says. “I didn’t win and they had a great gift for creating It also taught him that angels can be against him every time we sparred, but community, establishing purpose, inviting in the details. “I never once dreamed of what I learned was there was a bigger people to purpose, and challenging and being in the world championships,” force than I was and I had to reckon with supporting people simultaneously.” he says. “My goal was to go to practice it. Just like in business, you need to have Although both paradigms are nurtured the next day and have the best workout the experience, you need to have the by athletic competition, their proportion I could. coaching and you also need the confi- depends heavily on the sport and the I think dence to go against the heavyweight.” competitor’s role. “We make the assump- some- And the patience to keep at it. “One tion that if someone is an athlete, they’re times too thing that applies in business and in learning teamwork, when in fact that’s much sports is that success doesn’t happen not necessarily true,” Quinn adds. “There attention overnight,” says Klein. “It’s bought and are different levels of interdependence is paid to paid for every day through your hard in different sports, even in different work and dedication.” positions in different sports. Individual Mark Jeff Mortimer discipline and the capacity to persist Sorensen in the face of adversity is a critical skill MBA ’05

DIVIDEND 21 SPRING 2005 PAYBACK Bill Martin’s Business Acumen Spurs Michigan Athletics to New Heights

n a Q & A with Dividend, I University of Michigan Athletic Director and Ross School of Business alumnus Bill Martin discusses the payoffs of a business education. Learn how he hires talented people and what he thinks about sink- ing funds, cutting deficits and the Ritz-Carlton’s relationship with Michigan athletics. He also tells readers whether student-athletes should be paid and how to land a career in sports management.

DIVIDEND 22 SPRING 2005 DIVIDEND: What prompted you to say “yes” when former President Lee C. Bollinger asked you to become interim MARTIN: athletic director? MARTIN: You can say it in one word: payback. Although I did not know Lee well, I had a lot of respect for him. I had Banker, Developer been serving on a committee reviewing the athletic department’s finances for four or five months. Lee wanted to make a and Sports Chief change, and he needed someone to keep the seat warm while he did a national search. He called me about 10 o’clock on a n a business career spanning four Thursday night the second week in March decades, Bill Martin, MBA ’65, 2000 and said, “Would you do this for us? I founder and president of First I’ll have you out by Labor Day.” I called Martin Corp. in Ann Arbor, has him back the next day and said, “Yes, but developed billions of dollars of resi- I do not want any compensation. Michigan dential and commercial property. He has been great to me. It is the least I can also founded the locally owned and do for Michigan.” Lee needed a warm operated Bank of Ann Arbor. body, someone who could focus on the Five years ago he accepted a differ- business challenges. At the time I was on ent kind of challenge: Turn around the the board of the U.S. Olympics and had University of Michigan’s athletic pro- turned around the national governing gram, then reeling from a protracted body of sailing. I started the following basketball scandal and budget deficits. Monday, literally walking away from my In 2002, Martin was tapped to meet business. I could do it because we have another test—the U.S. Olympic such a strong staff at First Martin, almost Committee (USOC). Shortly after all Michigan business school grads. With joining the USOC as vice president- key people like Bob Gates, MBA ’76, and secretariat, he was appointed acting Chris Grant, BBA ’70, I knew the business president. Martin led an 18-month was in good hands. overhaul of the organization and the I consider Lee’s statement —“Go down United States’ successful Olympic Martin, as U.S. Olympic Committee president, there and see what you can do”— to be effort, which garnered 103 medals in carried the Olympic flame in the ceremonial the only job description I have ever had. Athens last summer. relay through New York City. Here, he celebrates The national search firm asked me a cou- Visitors to Martin’s second-floor with his wife Sally. ple times if I wanted to be a candidate, and office in Weidenbach Hall quickly I said, “Absolutely not.” The summer went learn the Michigan athletic director’s more than 700 student-athletes as well as by. They were interviewing folks. All of philosophy regarding work and life. other undergraduate and graduate students. a sudden, some coaches came and said, The following is posted on his door: Martin’s friend, New York real estate “We’ve submitted a petition asking Lee “Every morning in Africa a gazelle developer Stephen M. Ross, BBA ’62, to talk you into staying.” It surprised me wakes up. It knows it must outrun the gave a $5 million lead gift for the center, because I planned to return to the business fastest lion or it will be killed. which is scheduled to open in 2006. world. By that stage I knew exactly what it “Every morning in Africa a lion Today, Martin, who never earned would take at Michigan. I told Lee I would wakes up. It knows it must run faster a varsity letter or aspired to a career in stay three years. He said, “I’m going to than the slowest gazelle or it will starve. sports administration, ranks among announce five.” I said, “Okay.” I don’t “It doesn’t matter whether you’re a the world’s most influential sports have a contract. I am one of the few ath- gazelle or a lion. When the sun comes personalities. letic directors in the country without one. up, you’d better be running.” The world-class yachtsman stays I serve at the pleasure of the president, and The Olympic flag and Michigan physically fit working out at athletic I think that is the way it should be. memorabilia, including scores of team department facilities and playing hand- The AD appointment was similar to photographs, fill Martin’s office at the ball and squash. He sails out of Chicago. what happened with the Olympics. I was intersection of State and Hoover. A “About 10 or 12 of us race 70-foot-long literally drafted. I couldn’t say no to my new athletic academic center being boats. Each of us has a crew of 14 to 15. country and am proud of what we built next door reminds students My wife and I, our two sons and some accomplished. The U.S. had a goal of and fans of Martin’s and Michigan’s longtime friends, including folks who winning 100 medals last summer in priorities—academics first. The $12 sailed with us on the Stars & Stripes in the Greece. We won 103. The organization million, 38,000-square-foot building Canada’s Cup race in 1984, sail together was restructured to run more efficiently; will provide academic study space for on Stripes. It’s strictly a race boat.” we went from a 125-person board down to 11. While I am no longer on the Olympic

DIVIDEND 23 SPRING 2005 board, I serve on the U.S. Olympic Foun- uncontrollable expense. Our financial dation, which controls a lot of money and trends changed from deficits in 2000 and is working to bring the games to New 2001 to operating surpluses each year York in 2012. It would be a wonderful since 2002. We are projecting a surplus legacy for New York, the only true world in 2004-2005. city that has never hosted the games. Also, I find it interesting that Michigan DIVIDEND: What about being for the first time since 1998 leads the Michigan’s athletic director gives you country in licensing revenue. The block the biggest kick? M has become one of the most recogniz- MARTIN: One is the opportunity to able brands in the country. serve this incredible institution, to work Academics, athletics and finances are with great coaches, staff and student- easy to measure. Probably the most impor- athletes. We do not always agree. tant is the fourth—the integrity/ethical Sometimes we have to make some hard behavior of our student-athletes, our decisions. We also have an advisory coaches, our staff, all of us. Our conduct board made up primarily of faculty who is a core value issue, and we have had no have been tremendous to work with. major bad news stories. Also, there is out- They provide the academic perspective reach. Everybody wants us—our athletes, I think is so important. When you look our coaches and our staff—to perform at the University of Michigan seal, it says community service. We in the athletic in Latin “arts, sciences, truth.” It does department are proud to be held to a not say athletics. Academics must be our higher standard. Even though I love a day first and foremost focus. when I don’t shave, I don’t allow myself to DIVIDEND: You have said that the go out, even on weekends, without shav- athletic department recently completed ing because I feel like I am representing its best year in history. How do you eval- Michigan. I don’t go to a couple of bars uate success? I used to like because I don’t think the MARTIN: In four specific ways: First, athletic director belongs in those places. academics. Six-year graduation rates for Our staff members don’t go either and our student-athletes increased between not because there is a rule against it. Our 2000 and 2003 from 68 percent to 82 staff members also do not go to casinos. percent, which is a huge difference. We I strongly discourage it. have 10 teams with average GPAs of over What do I worry about at night? I worry 3.0. Soccer player Matt Niemeyer was about kids getting into trouble. Alcohol is one of three Michigan students selected the biggest challenge on college campuses for Rhodes Scholarship competition. The across the country today. Responsible new academic center being built next drinking is one thing. Binge drinking is door to my office is my highest priority. the challenge. It is a problem that must Second, athletics. We have a winning be addressed on college campuses and by tradition. Over all, in athletic performance, every segment of society—family, high we were second only to Stanford in the school and peer groups. 2004 National Association of Collegiate DIVIDEND: Do you think student- Directors of Athletics competition. This athletes, particularly football and basket- is our best-ever performance athletically. ball players, should be paid? You also must understand that Stanford MARTIN: No, absolutely not. I do has 35 sports from which to count points. not think you can segregate athletes in We only have 25. They beat us by a small one or two sports from the others. One margin. We had 11 conference champions; of the issues under discussion is how eight of them were women’s teams. We to recognize all the costs associated with participated in the Rose Bowl. We had the college experience. When you have 11 student-athletes and four coaches kids from families that do not have the participate in the 2004 Olympics. resources to help them, what are you Third, financial. Are we able to pay our going to do? Pell Grants help. In addition, Above, Lindsey Gallo, MBA ’04 and MAcc bills and maintain our facilities? Bear in the NCAA has set up a student-athlete ’05, won the 2004 Verizon Academic All- mind, we are the biggest customer of the opportunity fund that provides discre- American of the Year award for her efforts University of Michigan. I am the parent tionary funds schools can use to help on and off the track. to more than 750 student-athletes. We are student-athletes. For instance, if there is the biggest customer in the sense that we an illness in the family, we can pay to send Below, Engineering student Matt Niemeyer write a check for about $12 million a year the student home. We had some football was one of three Michigan students selected for grants and aid costs. When I started, it players who were in a house that burned for the annual Rhodes Scholar competition. was $8 million. For us, tuition is an down this summer. They lost everything.

DIVIDEND 24 SPRING 2005 Athletic Academic Center

We used the fund to put them up in a MARTIN: Without it, we would be 10,000 people a year. We are certain that motel and told them to buy some clothes. looking at a deficit situation. You look at a portion of those graduates would like DIVIDEND: What do you think of your options to stabilize your budget. You to continue attending games. We also do the Bowl Championship Series (BCS)? can do two things: increase revenue or not want the demographic profile of the MARTIN: I can argue both sides of decrease costs. In our case, decreasing costs members of the Michigan family who that issue. Is there momentum in the would mean cutting opportunities for par- attend our games to change, so we have country for a national championship in ticipation. There are only a couple ways seats in the end zones for which no dona- football like there is in basketball and the you can increase revenue. You either hold tions are necessary. We are not pioneering other sports? Another issue coming up in your hand out to the president and the anything. Michigan State instituted a pro- the conference is whether we should have Regents and say “help us” or you do it on gram similar to this last year. an additional football game. Part of the your own. We are doing it on our own. DIVIDEND: What from your career fabric of Michigan football includes end- Of the 20 largest collegiate football stadi- in real estate and banking has most ing the season with Ohio State. I would ums in the country, only one has not had affected your job as athletic director? not want to see anything change this tickets tied to donations of one form or MARTIN: Before I was hired, the long-standing tradition. Multiple issues another. Only one—us. Our fans and sup- University hired Accenture to evaluate surrounding the BCS are being dealt with porters, our season ticket holders, have the athletic department’s financial struc- at the conference level. had a wonderful time. I don’t like saying ture. I never forgot one phrase in the firm’s DIVIDEND: What do you think are this, but we basically subsidize them. Penn final report: “There is a lack of financial intercollegiate athletics’ biggest challenges? State has had a seating program similar to rigor.” We needed to tighten our belts and MARTIN: The single biggest challenge the one we are instituting for more than decision-making and business processes. facing athletic directors is how to pay their 20 years. I brought to the table 30 years’ experi- own way. Some of our biggest expenses are We have not received a lot of pushback ence meeting the test of the market. One uncontrollable. We cannot control tuition to seat licensing. We presented at alumni administrator told me, “This is Michigan. increases. I think you will see general fund clubs, making the case for Michigan ath- If we need it, we’ll do it and then we’ll money playing a larger role in financing letics and why donations are necessary. find the money.” Now if we need it and college athletics because schools do not By the way, 80 percent of these donations we find the money, then we do it. want to reduce the number of opportuni- are tax deductible. We also listened care- One of the things I have instituted in ties for students to participate in athletics. fully and learned about improvements each annual budget is a depreciation You must find resources or reduce the fans want at Michigan Stadium, which account. We have set aside $2.25 million number of opportunities for participation. we’re working on now and committed to to fix air conditioners. Too often in the In the Big Ten, the average school proba- doing. Michigan Stadium is functionally public sector you fix after failure. I am a bly contributes $2.5 million to athletics; obsolete. We have too few restroom facil- big believer in preventive maintenance. and at the high end, Minnesota, it is proba- ities. They are not in the right location. Before we start any construction project bly closer to $11 million a year. At Michigan, There are not enough points of sale so such as our new academic center for revenues cover our overhead. We pay people can buy a hot dog at halftime and student-athletes, we create a sinking fund. retail. We do not want to take resources make it back in time for the kickoff. We In the case of the academic center it’s away from Michigan’s academic mission. must fix that. $1.2 million earmarked to replace capital We have to be creative, to find the resources People really wanted to keep their tickets components over the lifetime of the facil- ourselves. That is why we have launched in their family, so as part of our preferred ity. I do not ever want to leave a burden the preferred seating program. It is part of seating program we created a one-year for others who sit in this seat by building our strategy to have an economic model window to transfer tickets to family or a facility, letting it run down and leaving that works. friends with the payment of a charge. Bear them to figure out how to rebuild it. If DIVIDEND: What is your decision- in mind that we have only one percent you set aside a million bucks, the interest making process when faced with consid- turnover among Michigan football season should cover replacing roofs and mechan- ering something like “seat licensing,” ticket holders each year. We have 15,000 ical equipment. I think we should do this which links season tickets to donations? on the waiting list. We also graduate some throughout the University. I would like

DIVIDEND 25 SPRING 2005 to know what Dean Dolan plans to do at believed in a lean and mean organization. windows falling out. We need to upgrade the business school. How much of Steve We have only one layer of manage- many of the components of the bowl. We Ross’ money is he taking and putting ment. I have an open-door policy. Any are looking at building some enclosed into a sinking fund? I think it is some- coach or student-athlete can walk in here seating because that is how you pay for thing you absolutely have to do. and talk to me any time. This is a very improvements. This has to be reviewed DIVIDEND: What strategy has led to public position. I believe I have to be and turned in to the University officers the hiring of such outstanding coaches as accessible to the public. I have a listed and, of course, the Regents for approval. Tommy Amaker? phone. I read and answer my own e-mail. I cannot say when we will get something MARTIN: Hiring coaches and staff is We have started a program with foot- done, but we are proceeding with due the single most important thing I do. ball that I think is important and we plan diligence. Our first objective is to take They are the ones who make this place to extend it to other sports. We have an care of those folks who have been attend- work. In addition to hiring the best and e-mail address at [email protected] ing games for years. Issues we must face the brightest, you have to make certain where folks can let us know how we can include access, restrooms, electrical the person really fits at this institution. improve their game-day experience. It is wiring and other things you do not see. important we keep Michigan Stadium Some of the work that needs to be done filled. It is important how our supporters does not even improve the game-day “I do not ever want to leave a burden for are treated from the time they hit the experience. All of it takes money. You borders of Ann Arbor. How is the traffic? have to figure out a funding strategy and others who sit in this seat by building a How are they treated by the Ann Arbor go from there. facility, letting it run down and leaving city police and officers from the county DIVIDEND: What advice would you sheriff’s department? How is the parking give to businesspeople or administrators them to figure out how to rebuild it. If working? How courteous are our ushers? who aspire to a career in athletics? you set aside a million bucks, the inter- Do they help fans who have a problem? MARTIN: A lot of students ask how This is all critical to creating a positive they can get into college athletic admin- est should cover replacing roofs and experience. We sit and talk about every istration. I am not certain I am a good mechanical equipment. I think we should response we receive and what we can do. example because doing this was not on It is how the Ritz-Carlton treats people. my radar screen. I do believe that busi- do this throughout the University.” We have had our staff meet with Ritz- ness experience is extremely helpful. You Carlton staff. Notre Dame does a great have to know how to deal with student- job at its football games. The first words athletes and coaches and understand the Tommy is an incredible fit for Michigan. visitors hear are “Welcome to Notre Dame. coaches’ challenges—be able to walk in He came into a very tough situation and If we can help you, let us know. Have a their shoes for awhile. I tell people you has done a fabulous job turning it around. great day!” have to pay your dues in this business We had a couple long conversations on We are in the service business. Our and suggest they look for entry-level the phone before we met in person. I events affect the whole Michigan family. positions. Mid-career people come to me asked Stephanie, his wife, who was with If we have a donor to the business school him, to stay for the interview. I wanted to who has a bad experience at a football get to know her too and see if she felt this game, it reflects negatively on the business “We have only one layer of management. was right for her and Tommy. I could school too. This is true of any of the 19 not be happier with that choice. He is schools and colleges. We are raising our I have an open-door policy. Any coach or strategic. He’s put together his own great standards in the area of customer service. student-athlete can walk in here and talk staff of coaches, and he understands our DIVIDEND: How far along are you emphasis on academics. with facility upgrades? to me any time. This is a very public That goes for all the other coaches too, MARTIN: We have so many facility position. I believe I have to be accessible and we have so many great coaches here. challenges. If you are talking about Look at Bob Bowman, our new head swim- Michigan Stadium specifically, the to the public. I have a listed phone. I ming coach, and what he brings to the infrastructure is obsolete. The electrical read and answer my own e-mail.” program. It is tremendous. And, of course, system was installed in 1926 when it was Michael Phelps will be joining us as an built. I like to use the analogy of a house. incoming freshman and as our volunteer Can you think of a house built in the men’s assistant swimming coach. Having 1920s that has not had the addition of and say, “I want to make a lateral move the best swimmer in the world helping our a bedroom or two or a family room or into athletics,” but they have zero experi- kids—it doesn’t get any better than that. a kitchen redone? I can’t. The Michigan ence in athletics. They are extremely I feel our senior staff also are tremen- Stadium press box was redone in 1952. successful in their profession but do not dous. Megan McCallister is doing a great The elevator button still identifies the bring any skill set we can use immediately. job as associate athletic director for cor- fourth level as the radio level. At one Working for the NCAA or one of the porate development. I view every hire as time there were 19 little soundproof athletic conferences, perhaps working in absolutely critical. I also do not hire peo- cubicles for radio broadcasters. Now you professional sports or in marketing— ple just to hire. We must have a need to have two radio stations represented, one these are all excellent related experience, fill. We are probably down four adminis- for the visiting team and one for the which I think helps. Shoe leather is another trators from when I came. I have always home team. I worry about the press box factor. You must hustle. My experience

DIVIDEND 26 SPRING 2005 was different because Michigan needed this is equity. In the tower he shaded in ments for you or I clean them?” I had help for the short term, and I simply a narrow band of equity at the bottom, found the work but then I couldn’t find ended up staying. leaving a huge amount of space at the top enough high school dropouts to do it. DIVIDEND: What are your most to indicate debt. The two-story building Finally someone suggested I go to the vivid memories of your days as a student? was equally divided, with equity at the Ypsilanti State Mental Hospital and talk to Who were your most influential professors? base and debt on top. “When things go them about supplying workers. The staff MARTIN: I remember several profes- bad and the foul winds of financial change was eager for the opportunity to help sors very well. Having the privilege of start to blow, which deal is going to sur- deinstitutionalize people. I needed to hire sitting in Paul McCracken’s classroom vive and which one is going to collapse?” people so I had to conduct interviews. I meant a great deal to me, knowing his he asked. I have always thought it was a had never interviewed anybody for any- stature and that he had served as chair- wonderful way to visually explain a finan- thing. The day I went at least a hundred man of the Council of Economic Advisers. cial concept so people understand it. people were waiting to be interviewed. I Professor McCracken is a wonderful The most wonderful experience I had worked for EEDCO for my entire MBA man. Of course, my wife Sally served as in school happened because I needed a career. At the peak another MBA student the secretary to accounting Professor job. On a bulletin board I saw a three-by- and I managed 30 or 40 people who William Paton while she was working on five card advertising, “Wanted: Manager cleaned at various locations. We started her master’s degree in European history. for a new start-up company.” The job with nothing. By the end of the year, we Even though we were both at the business paid $3 per hour for 20 hours a week. left a bank account of $2,000 to $3,000. school, I did not meet her until later. All I saw was $60. I contacted the two The business was thriving and we had Another professor I remember was George professors who had posted the job— helped deinstitutionalize seven people. Odiorne, professor of industrial relations. George Odiorne and an engineering pro- Working gave the residents the confi- Initially I earned a graduate degree fessor. They wanted to form a company dence they could make it on their own. in economics from the University of called Employment Enterprise Develop- Working for EEDCO was probably Stockholm. I planned to stay in Europe, ment Corp. (EEDCO). Their objective the most significant thing I’ve done in but a couple of companies recommended was simple: Take tax users and turn them my life. What is interesting is that I still I get an American MBA so I returned into tax producers. They said, “Martin, see one of the men we placed 40 years to Michigan because of in-state tuition. we will give you two weeks,” which to me ago. He lives in Ann Arbor. When I see One thing I try to pass on is some- meant $120, “to figure out where you can him, we always stop and talk. thing I learned in a basic finance course. find unemployables, identify work they Through EEDCO, I gained real estate The professor came in one day and said, can do, hire them and put them to pro- experience and learned about real estate’s “Gentlemen”— we had all men in the ductive use.” Simple, huh? That was the benefits. I had always wanted to work for class back then —“today we are going charge. I had to show them something myself and took two or three real estate to learn about leverage.” He drew two for $120. courses. I knew it was a long process pictures, one tall vertical tower and one A building manager told me he could but a very rewarding career. I love the shorter, two-story horizontal building. not find enough people to clean apart- creative process. “There are two ways you can finance a ments between tenants, so I said, “What Mary Jo Frank deal. This is your deal. This is debt and if I find somebody to clean the apart-

FINANCE FUNDAMENTALS: To explain debt and equity, the finance professor drew pictures of a tall tower and a shorter two- A LESSON BILL MARTIN story building. He shaded in narrow bands of WILL ALWAYS REMEMBER equity at the base of both and asked the class, “When things go bad and the foul winds of finan- cial change start to blow, which deal is going to survive and which one is going to collapse?”

DIVIDEND 27 SPRING 2005 STEVE KUZMA WANTED: The Best and Brightest or outstanding high school seniors admission as juniors. With more than be admitted when they apply to who have their heart set on study- 95 percent of BBA students transferring Michigan.” F ing business, the University of from the University’s liberal arts “There are a lot of great people we Michigan is now a more attractive program—over half with 3.6 grade- never see,” says Dolan. “We think this option, thanks to policy changes that point averages and higher —the business will help attract more minority students.” allow them to be admitted to the Ross school made few, if any, admission When Dolan discussed plans for the School of Business when they apply to mistakes, says Dean Robert J. Dolan. new BBA Program at the Alumni Society the University. Why tweak an already successful Board of Governors meeting last fall, The possibility of being admitted as a program that requires little attention Isadore King, BBA ’71, MBA ’74, said, first-year student puts the Ross School on and no marketing? “I knew I wanted to be an accountant par with other top BBA schools, including Scott A. Moore, director of the BBA when I came out of high school. Wharton and the Massachusetts Institute Program and associate professor of I would have been a candidate for this of Technology, and is expected to produce business information technology, says, program.” a larger, more diverse pool of applicants. “We anticipate that the BBAs will be Vivian Carpenter, MBA ’75, PhD ’85, At the same time, it also gives students a more integrated into the business and who also serves on the school’s alumni chance to come to the University and University campuses and that our classes board and supports the change in the apply to the business school at the end will be more diverse in academic inter- BBA Program, said, “It is a big problem of their freshman year. ests, gender and race as more students for students who know they want to go Under a pilot program in fall 2006, the are exposed to what the business school into business and don’t want to wait Ross School for the first time will admit has to offer. until their junior year to see if they are 70 students directly from high school, “Now we get the very best, students accepted. Many of these students are 280 second-year college students and its who have proven themselves. However, going to Wharton and Washington at St. last class of third-year students. Historically, we’re also missing large pools of students Louis. I think it is critical that we create Michigan undergraduates have spent two who don’t apply to Michigan and others the opportunity to recruit and develop years in the College of Literature, Science, at the University who don’t apply to the the high school students who have and the Arts (LSA) and applied to the business school. This will help us recruit already identified their career path as business school their second year for the brightest students who would like to business to be nationally competitive.”

DIVIDEND 28 SPRING 2005 “A four-year coordinated experience also makes more sense,” Dolan says. “Students will continue to spend half BBA Program Brings their time in LSA and half in the business school but will mix things up more.” The New Twist to Biz, BBA Program will offer new courses — introduction to business at the beginning Liberal Arts Combo and intense senior-level integrated elec- tives at the end — and allow business students to take upper-level LSA courses ason Gottlieb, BBA ’04 and student Faculty can design and even study abroad their junior year. J representative on the task force a curriculum that Changes in the BBA Program are the that recommended changes in the builds on business Jason Gottlieb result of a two-year faculty study. Moore Ross School’s BBA Program, says giving fundamentals stu- and Thomas C. Jones, BBA ’68, MBA ’71, undergraduates opportunities to inte- dents learn early in their undergraduate the school’s first executive-in-residence grate liberal arts and business classes career. and first director of the BBA Program, over a four-year period makes sense. BBA students will have more time served on a seven-member task force that “It’s the liberal arts piece that sepa- to apply what they learn outside the surveyed BBA alumni and students about rates the Ross School from other top business school because they will be their business school experiences. Also business programs,” says Gottlieb, introduced to business concepts earlier. serving on the task force were Eugene business analyst at A. T. Kearney Inc., Companies like A. T. Kearney that W. Anderson, associate dean for degree who cites other benefits from the already have a strong presence on programs and professor of marketing; changes: campus will be even more interested Izak Duenyas, associate dean for faculty The Ross School will be able to in recruiting BBAs who have been development and research and the John attract top academic performers who exposed to the Ross School’s diverse Psarouthakis Professor of Manufacturing are confident about their interests and thriving business community for Management; George J. Siedel, the in business early on—students a longer period of time. Williamson Family Professor of Business who in the past might have opted Administration and professor of business for longer programs offered at law; David W. Wright, associate professor other universities. of accounting and faculty director of the Master of Accounting Program; and STEVE KUZMA Jason Gottlieb, BBA ’04, business analyst at A. T. Kearney Inc. In all, the task force received responses from 1,600 alumni and 250 BBAs. Siedel, who directs the two-semester Left top, BBA Program BBA Senior Seminar, in which students Director Scott A. Moore work with a senior professor to develop talks with Emily Walkowiak, a thesis that builds on liberal arts and center, and Chandni BBA coursework, says changes in the Patel, both BBA ’05. BBA Program will enable students to take foundation courses such as statistics Left bottom, Sarah Wilson and business economics before enrolling and Rishi Mukhi, both in other core business courses. BBA ’06, joust at the 3rd Moore, who received the BBA Teacher Annual BBA Games, an of the Year Award in 1997 and 2000, looks informal recruiting event forward to teaching the new BBA survey where BBAs compete course, World of Business, beginning with their section mates in January. Designed by eight faculty in sporting contests while members, the course will help students learning about visiting understand the business majors from companies. which they can choose. “I like BBAs. They are smart, hard working, willing to listen and learn. They’re so much more advanced as 21- year-olds than I remember being. They are more organized, present themselves better and speak better. They’re nice. They’re real solid, good kids,” says Moore, one of five faculty members named by the University of Michigan STEVE KUZMA

DIVIDEND 29 SPRING 2005 Regents in 2004 to the Arthur F. Thurnau Professorship for outstanding contribu- tions to undergraduate education. Jeff Rich: If You Don’t Love “The new World of Business course being taught by Scott Moore is an excit- ing development because it will provide What You Do, Leave It an overview of business, not only to BBA students but also to LSA students who otherwise might not be exposed to business issues and analysis. They will be hen guest speaker Jeff Rich, BBA better-informed citizens,” Siedel predicts. W ’82, began his talk to incoming Ross School of Business faculty mem- BBA students, only five students recog-

bers are piloting BBA senior-level elec- nized his Dallas, Texas-based company, D.C. GOINGS tive courses that build on information ACS, a leading provider of business from the core areas and emphasize team- process outsourcing and information work, writing and communication skills. technology. “These capstone courses will be more “Our policy of not advertising is intense and far-reaching, beyond the working,” he joked. “There are only scope of normal electives,” Moore says. 20,000–25,000 people we need to know. Also on the drawing board is a BBA Our market relies on referrals. They all Leadership Development Program, simi- know each other and they all talk.” lar to what is offered to MBAs. It will Rich, CEO of ACS, quickly brought Life is a lot of trial and error, Jeff Rich tells focus on leadership and teamwork and students attending fall orientation up to BBA students. making a successful transition from speed. ACS, a Fortune 500 company, has student to professional. 43,000 professionals in nearly 100 coun- than someone who is earning a quarter tries, including China, the Dominican of a million dollars and hates the job.” Mary Jo Frank Republic, Fiji, Ghana, India, Ireland, What’s hot today will not be hot Jamaica, Malaysia, Mexico, Spain and the tomorrow. Be careful of getting into United States. ACS, whose customers overheated industries, currently include such household names as AT&T, hedge funds, overseas construction Sprint, Aetna, Allstate, UPS, General and private equity. Motors and Motorola, operates the New Keep first things first. ACS’ highest York-New Jersey Easy Pass System and priorities are sales, satisfied clients and manages health claims processing for strong financial performance. “Do what eight of the top 10 health insurers. you can to help make the sale. CEOs “We move low-end tasks offshore. It love people who bring in revenue.” Many BBA is a pretty boring business, but there is a Acquire equity. “I’ve met a lot of wealthy lot of money in boring,” said Rich, who people. None of them became rich Alums Tops joined ACS as chief financial officer in earning a salary. Initially the equity 1989, one year after the company’s may be worth nothing, but equity has inception. He was named president and an enormous multiplying power.” in Their Fields chief operating officer in 1995 and has served as CEO since 1999. For the past Rich seeks in new hires: ot surprisingly, BBA alumni are four years, ACS has been ranked in the Personality. “If you don’t have one, among the Ross School of Business’ N Forbes Platinum 400 List of Best Big start working on one. All leaders have most distinguished. Armed with a busi- Companies in America. great personalities. People like doing ness education, they pursue careers in Rich shared with students five life lessons business with people who are fun and law, medicine, engineering and enter- he predicted they won’t learn in school: engaging.” tainment, as well as business. Alumni Life is an adventure. Plan to have many. Achievement at an early age. “People include such luminaries as Jeff Blau, “Don’t get caught up in mapping a life who have ambition have a history of BBA ’90, William Davidson, BBA ’47, strategy. You’re not qualified to lay accomplishment. I can’t teach ambition.” Frederick A. Erb, BBA ’47, Harvey C. out a life strategy yet. Be prepared for Intellect. “I look for people with raw Fruehauf, BBA ’52, Barnett Helzberg, life’s twists and turns.” smarts who think and talk fast and are BBA ’56, Thomas C. Jones, BBA ’68, There is no such thing as a bad job. able to analyze issues quickly.” MBA ’71, Jeff Rich, BBA ’82, Sanford Life is a lot of trial and error, and part Diversity in age, gender, race, cultural Robertson, BBA ’53, MBA ’54, Richard of the process is finding your passion. and life experiences. “I like to hang out Rogel, BBA ’70, Stephen M. Ross, BBA “You will spend the majority of your with people who are different than me.” ’62, who recently gave $100 million to waking hours working, so if you don’t Passion. “I like people who are excited the school, Robert Shaye, BBA ’60, and love what you do, leave it. I have more about what they are doing. If they Joel Tauber, BBA ’56, MBA ’63, to name respect for an owner of a small bicycle aren’t, I tell them to find another job a few. repair shop who loves fixing bicycles in ACS or go outside.”

DIVIDEND 30 SPRING 2005 BBA Leads Michigan’s Race with the Sun

s a video show- A casing the Uni- versity of Michigan solar car flashed across 30-foot screens for 1,200 auto indus- try titans, Michael Brackney, BBA ’06, admits to being… okay…a little nerv- ous. But he had put four weeks of prepa- Michael Brackney, ration into this four- DWIGHT CENDROWSKI BBA ’06 minute presentation at the Detroit Auto Momentum, which travels up to 80 miles per hour, will compete in the 2,400-mile North American Show, and his confidence carried the day. Solar Challenge in July. “It was a feat to have the car ready for the show in January,” he reports. “We student volunteers, he is involved in all sion of the strategy team uses GPS (global expect to be very competitive in the North aspects, from strategic planning to budget. positioning system) data to map out traffic American Solar Challenge and possibly, He has personally raised close to a third signals, showing where to speed up and after that, the world race in Australia.” of the project’s $1.5 million cost in cash slow down. All these numbers are fed Around 30 to 40 college teams are and in-kind support. into a complex computer model calculat- expected to compete in the biennial Brackney became involved with the ing optimal speeds,” Brackney explains. 2,400-mile race, which runs July 17-28 solar car for the same reason he applied U-M’s car, named Momentum, travels from Austin, Texas, to Calgary, Alberta. to the Ross School of Business: to be part up to 80 miles per hour since the course The international event follows in of something ranked among the best. follows public highways with speed limits. September. Besides Brackney, who is “I chose Michigan because it has a top- The students race from 8 a.m. to 5 p.m., project manager, volunteers include notch business school. But I’m also inter- draw a line in the road and resume the Jonathan Plichta, BBA ’06, Web site ested in science and engineering. I could next morning. coordinator, Jon Bates, MBA ’06, and see that this would be a unique interdis- Brackney won’t be one of the drivers. Adarsh Das, MBA ’06. ciplinary experience and expose me to “Everyone has a role to play, and mine A junior from Peoria, Illinois, Brackney a vast number of industry recruiters,” is to coordinate all functions of the race spends up to 80 hours a week coordinating he adds, looking ahead. crew and act as a liaison with the race the efforts of four divisions: engineering, Like the business school, the U-M officials, the media, the University and operations, strategy and business. solar car has earned national recognition. other sponsors.” One of the chief attrib- Interfacing with deans and administra- Michigan had won three races since utes he brings to this job is diplomacy. tors, corporate sponsors and some 200 1989, more than any other college team. “The race manager sets the tone for But in 2003, the car failed to qualify due the team’s image,” he concludes. And Brackney, second from left in the back row, to a steering malfunction. “Most of the that is: “To be perceived as a professional and fellow Team Momentum members unveiled volunteers were new that year,” Brackney racing team. Some people think, oh, it’s the University of Michigan’s 2005 solar car at notes. “It was a huge learning curve.” just a class project. We have members the Detroit Auto Show in January. A core group persisted and named who are pouring their lives into this! Brackney their leader. The car, which is “If I can look back and see that we redesigned and rebuilt for each race cycle, developed our people into being the best features three wheels instead of four this they can be, and I’ve done my job to the year, reducing aerodynamic drag and best of my ability, I will feel like we had a energy loss. It carries 25-kilogram batteries winning team. And we hope that will result on board that are constantly recharging in another national championship.” in sunlight. Pat Materka “The weather team has instruments to measure cloud conditions and project For more about Team Momentum, visit: how these can impact our power. A divi- http://www.engin.umich.edu/solarcar/

DIVIDEND 31 SPRING 2005 Embracing Hands-on Experience

ction-based learning takes many forms at the Ross A School of Business. In addi- tion to the required Multidiscipli- nary Action Projects course for all MBAs, both graduate and under- graduate students select from a range of other opportunities to gain real-world experience, from intern- ing at Fortune 500 companies Tree hugger and scuba diver Rebecca Nadel and serving on nonprofit boards to published a handbook on the economic identifying and investing in promis- impact of parks, trails and rivers as part of her ing start-up firms. Domestic Corps internship. Students test skills learned in classes, assess business challenges, Degrees in Business tunities apply the latest research findings to at the and Natural Resources, Ross their assignments, and assume the School of role and responsibilities of leader- Internships Stretch BRET WHITFORD Business ship, all the while creating a remark- Engineer’s Horizons —Multi- able record of achievement. disciplinary Action Projects (MAP), Dividend focuses on the people hen electrical and acoustical engi- Domestic Corps, Nonprofit and Public and programs that animate action- W neer Rebecca Nadel, MBA ’05 and Management Center and the Community MS ’05, followed her passion—oceans Consulting Club—gave her the experi- based learning at the Ross School and marine life—her journey led inland, ence she needed to switch careers. in the following stories: to the University of Michigan, to dual “I did my undergraduate degree at Duke University, which has a fantastic 32 Stretching Engineer’s Horizons degrees in business and natural resources. Nadel, who graduates this spring from marine lab. Being a type A engineer, 33 Bringing High-tech Inventions the three-year Corporate Environmental though, I couldn’t justify returning to to Marketplace Management Program (CEMP), will grad school to be a marine biologist,” join Shell Exploration and Production says Nadel, who also holds a master 34 Sharpening a Brand Identity as sustainable development and social of engineering degree in underwater performance manager for the Western acoustics from Pennsylvania State 34 Merging Theory and Practice Hemisphere. Based in Houston, she University. 35 Assisting Career Transition will work with teams searching for and “CEMP stands head and shoulders extracting oil, often in marine areas, and above other dual-degree programs in 35 Spotlighting Pfizer Project Team will support Shell’s sustainability efforts. business and natural resources in terms of faculty expertise, alumni networks, 36 Scoring an IPO Home Run She’ll also monitor how Shell’s opera- tions affect communities and people— staff, and financial and emotional sup- 36 Investing in the Next Hot and their environment. port for students,” says Nadel, explaining Company Nadel, formerly an engineer with BBN her decision. CEMP is part of the Erb Technologies in Arlington, Virginia, says Environmental Management Institute. CEMP and action-based learning oppor- The institute, a joint program of the Ross

DIVIDEND 32 SPRING 2005 School of Business and the School of “I’ve been going to fabulous UMS from angel, seed, venture capital or Natural Resources and Environment, is events since I arrived in Ann Arbor. I strategic investors. endowed by Frederick A. Erb, BBA ’47, camped out at the box office the begin- Students worked directly with the and his wife, Barbara. ning of each term and stocked up on principal investigators for each research “Clearly Michigan is not an ocean half-price tickets,” says Nadel, who also project, said Professor David Brophy, coastal state so the Great Lakes have has worked with UMS marketing and instructor of the practicum and director become my marine focus here,” adds education directors to increase student of the Center for Venture Capital and Nadel, who holds several scuba certifica- attendance at events. Private Equity Finance at the Ross tions. “For me, having a strong dual- Nadel, who served as a graduate Business School. degree program was most important.” research student assistant with Michigan They analyzed the potential product Nadel gained nonprofit experience Sea Grant, rounded out her coursework application for the researchers’ intellectual leading a Community Consulting Club with an independent study of the impact property, assessed the competitive land- team that developed a growth and of cruise ships on the marine environment. scape for the product and created a finan- marketing strategy for the Michigan Looking back at her three years as a cial model. The market strategies for these Women’s Foundation. The foundation CEMP student, Nadel, a competitive moun- initiatives typically involve a licensing promotes the development of women tain biker, says, “Michigan has pushed agreement with an existing corporation and girls through education, job training me and made me realize how much more or creation of a start-up company. and financial planning. “It was a fabulous I can do. The Ross School has given me Snyder, founder of Ardesta Corp., an leadership experience. We compared great management responsibility and has Ann Arbor-based venture capital firm the foundation with other state women’s extended my horizons and capabilities that invests in nanotechnology compa- organizations that have grown more rap- more than I ever expected.” nies, advised Brophy’s class to focus idly,” explains Nadel, who also served on on the product and its application— the club’s executive board in 2004-2005. ✷✷✷ not on the underlying science. As part of her MAP assignment, “We don’t do technology investing Nadel performed field work in Costa Business Students (at Ardesta). We do product investing,” Rica and Honduras for E+CO, a non- Snyder said. “You have to ask the right governmental organization that supports Help Scientists Bring questions. How does this become a renewable energy projects in the devel- product and what’s the time frame? oping world. Last summer, Nadel gained High-tech Inventions Are you building a component, a sub- government experience working as a to Marketplace system, a system or a solution? Where Domestic Corps intern with the National should you be in the distribution chain? Park Service in Oakland, California. She romising scientific research and Where’s the value?” published a handbook on the economic P groundbreaking technologies often Snyder identified other questions for impact of parks, trails and rivers for prac- fail to achieve commercial success the students to address as they developed titioners creating new green spaces or because they lack compelling market their business plans. Is the product’s developing and maintaining natural areas. strategies needed to secure adequate success dependent on creation of a new “Most of us agree that the intrinsic financing. market niche, or will it replace an exist- value of enjoying nature with friends and Financing Technological Entrepre- ing product or technology? What is the family is most important, but today the neurship, a practicum offered for the first total value it will bring to customers? financial benefits of being near parks— time in fall 2004 at the Ross School of What are the potential obstacles? Will real estate values, income-generating Business, provided MBA students and the benefits outweigh prospective cus- activities and health—are important undergrads with skills to avoid common tomers’ resistance to a new product or too,” Nadel says. pitfalls and successfully navigate the per- the infrastructure investment required Nadel also served on the Student ilous path from the laboratory to the to adopt a new technology? Advisory Board for the Nonprofit and marketplace and first-hand insight from “Is it a need-to-have or a nice-to- Public Management (NPM) Center, a practitioners in the field, including Rick have? When you have something new, joint project of the Ross School, Gerald Snyder, MBA ’79. nice doesn’t cut it. It has to fulfill a R. Ford School of Public Policy and The course combined readings, lec- need,” Snyder said. School of Social Work. Through the NPM, tures, presentations by industry leaders Research commercialization is criti- she was a board fellow with Michigan’s and projects that teamed students cally important, Brophy said, because University Musical Society (UMS). In with researchers and faculty from the technological innovation fuels competi- addition to being a non-voting board mem- University’s Medical School, College tiveness and the creation of economic ber, she worked on a benchmark study of of Engineering, Office of Technology value and jobs; and the work in Financ- major university entertainment presenters Transfer and Kresge Hearing Institute, ing Technological Entrepreneurship to identify the musical society’s strengths as well as the Michigan Research positions the University at the forefront and areas where it could improve. Her Institute and Michigan State University. of this movement. findings were presented to the UMS board Participating scientists are in the “There will be 50 Ross Business and at a national meeting of university early stages of commercializing research School alums knowledgeable about presenters. “Both groups liked the way in the life sciences or information tech- research commercialization,” said we dissected the data. The report will nology, and the students devised busi- Brophy, who co-authored two chapters become a national template,” Nadel says. ness plans to help them attract financing in the textbook used in the course,

DIVIDEND 33 SPRING 2005 Financing University Spinouts: A seeks to increase aware- Handbook for Entrepreneurs and ness of the needs of care- Investors. “They will be prepared to eval- givers — people who uate and form these types of deals.” provide care for disabled Tieh-Ling Koh, MBA ’05, said the children, elderly parents, course taught her how to merge entrepre- ailing spouses, frail neurship with her master’s degree in biol- friends, and neighbors. ogy. “There is a need for people who can Stoner’s goal was to help STEVE KUZMA bridge science and business,” she said. the organization improve “Hopefully, I’ll have an advantage.” its brand identity and promote its products and Merging Theory and Practice ✷✷✷ programs. ore than 400 MBA students capped their first year at the “RCI is virtually Ross School of Business this spring with seven-week unknown outside south- M Domestic Corps Intern Multidisciplinary Action Projects (MAP). Here, left, Joanna west Georgia. My task Zucker, MBA ’97, brand manager at Procter & Gamble, talks Helps Rosalynn Carter was to help RCI publicize with Graciela Cruz, MBA ’06, at Company Day about a Procter itself nationally given its & Gamble marketing strategy project. Company Day, held each Institute for Caregiving small budget,” Stoner January, gives students and faculty advisers an opportunity to says. The nonprofit, Sharpen Its Brand Identity learn about potential projects before bidding on assignments. which is affiliated with Among the more than 80 companies and nonprofits represented he Rosalynn Carter Institute for Georgia Southwestern at this year’s Company Day were American Express, CitiGroup, Caregiving (RCI) faced a classic mar- State University, is the T Cummins Inc., Microsoft Corp. and Northwest Airlines. keting challenge: Identify its audience only university-based and tell that audience about its products caregiver organization MAP, a field-based, 7.5-credit immersion course, is a defining and services, says Diane Stoner, MBA ’04. in the nation. The RCI characteristic of the Ross School MBA experience. Student Stoner and 29 other Domestic Corps also has a national office teams work full time on projects, acting as consultants to firms interns at the Ross School of Business in Washington, D.C. and nonprofits that compete to be MAP sponsors. Using their worked 12-14 weeks last summer for The internship was an analytical skills and the latest research findings, students pro- nonprofit organizations in economically excellent opportunity for duce valuable information for sponsors and stimulate exchanges distressed communities from Tsaile, Stoner, who began in the that benefit scholars and business practitioners. For information Arizona, to Benton Harbor, Michigan. evening MBA program about sponsoring a MAP team, contact Gale Amyx, MAP manag- Through action-based learning programs in 2002 and transferred ing director, at [email protected] or call 734.763.2463. such as Domestic Corps, now in its 13th to the day program in year, the Ross School provides students January 2004, to apply opportunities to solve real-world busi- lessons learned in mar- ness challenges and develop leadership keting, strategy and organizational regarding nomenclature immediately, skills. Interns are supported by corporate behavior. She developed a dozen recom- says Ronda C. Talley, RCI executive and philanthropic donations. mendations, including: Commit to a director and professor. Stoner also The RCI, located in Americus, Georgia, naming and identity strategy and be helped edit RCI publications, five of vigilant in its implementation, adopt which have been published. one consistent tagline such as Talley is impressed with the quality “Advancing the interests of caregivers of Ross School of Business students. across the lifespan and across America” “Diane was wonderfully self-motivated

BRIAN TALBOT and make the RCI Web site the hub of and brought ideas into the equation that the organization’s marketing efforts. I would never have thought of.” Before Stoner arrived, the RCI was Stoner serves on the University of known by at least five names. “This Michigan Alumni Association Board as was diluting its message and confusing,” a board fellow through the Nonprofit says Stoner, who recommended using and Public Management Center, a joint one name—Rosalynn Carter Institute project of the Ross School of Business, for Caregiving—and one abbreviation— Gerald R. Ford School of Public Policy RCI. The RCI must piggyback on the and School of Social Work. Many of Diane Stoner’s recommendations to Carter Center’s marketing efforts to She also continues to follow RCI’s improve the brand identity of the Rosalynn create its own identity, she says. If the progress. In fact, when President Jimmy Carter Institute for Caregiving were implement- Carter Center has brochures in a muse- Carter was interviewed on National ed immediately following Stoner’s final report um, the RCI also should have brochures. Public Radio last fall, he talked about the to Rosalynn Carter and the nonprofit’s board By seeing the two publications together, Rosalynn Carter Institute for Caregiving in September. Here, Stoner stands with faculty people will understand that they are sep- and, Stoner notes, “He got it right.” member Len M. Middleton outside the Carter arate organizations,” Stoner says. Domestic Corps, launched in 1992, Center in Atlanta. The RCI board of directors imple- provides business assistance to nonprofit mented Stoner’s recommendations organizations throughout the United States.

DIVIDEND 34 SPRING 2005 Each year Domestic Corps interns provide through TMI and two master’s degrees more than 15,000 hours of business assis- through the dual business and natural Spotlight! Shines on tance, including strategic planning, busi- resources program—Corporate Environ- Pfizer Project Team ness plans, and financial and operational mental Management Program (CEMP). analyses. To learn more about Domestic The first, David Gard, MBA ’01 and fizer Inc. team members Nari TenKley, Corps and read students’ accounts of MS ’01, works as an energy policy analyst P MSE ’05, and David Portner, MBA ’05 their intern experiences, visit www. bus. at the Michigan Environmental Council and MEngr ’05, won first place at the Tauber umich.edu/DomesticCorps. in Lansing. Manufacturing Institute’s (TMI) Spotlight! 2004 In a second internship at Honeywell, in September. The TMI team increased the capac- ✷✷✷ which he found through a national student ity of the pharmaceutical firm’s “kilo labs” by club conference in Los Angeles, Baptista more than 20 percent without the need for sig- Dual Degrees, was responsible for optimizing processes nificant capital expenditures. Kilo lab facilities in delivering information technology produce the first bulk quantity of a prospective TMI Assist with services to customers. He was asked to drug for toxicology testing and Phase I clinical Career Transition develop a strategy to reorganize the IT trials in humans. This increase in capacity has department of more than 200. In the saved Pfizer the need to construct an additional Tauber Manufacturing Institute process, he discovered that staff, located kilo lab manufacturing facility, which would A (TMI) team drew on operations around the world, had worked in teams have cost approximately $50 million. management, corporate strategy and lean for years but had never met each other. manufacturing skills to create a visual “The IT department relied heavily on TenKley and Portner, who each won $4,500 management system to reduce inventory e-mail, virtual discussion rooms and scholarships, competed with 15 other teams at Honeywell’s Autolite Sparkplug Plant. conference calls. However, facial recogni- at the all-day event that showcased students’ As a result, Honeywell is saving more tion is important especially when it comes 14-week summer projects. Each TMI team pre- than a million dollars each year. to gaining trust and working together,” sented its results to an audience of corporate “We looked at every aspect of says Baptista, who took close to 100 pho- representatives, students, alumni and faculty. Honeywell’s process,” says TMI team tographs of IT staff and created a media Judges from the manufacturing industry evalu- member Tony Baptista, MBA ’05 and splash akin to the “Got Milk?” campaign. ated the projects on the basis of scope, imple- MS ’05. We revised production sched- The posters were very popular and many mentation, impact, overall presentation skills ules, developed a system to maintain satellite offices asked for copies. To learn and other criteria to determine the winners. discipline on the workshop floor, and the names of the people on the posters, For more information about TMI Team Projects, improved information technology and Baptista encouraged Honeywell employ- visit www.tmi.umich.edu. communications to help material flow ees to visit the company’s Web site, more efficiently.” where they also learned about the IT Baptista’s TMI experience is one of team’s reorganization efforts. several action-based learning opportuni- “I learn a lot from coursework and ties the Cambridge, Massachusetts, lectures, but I learn most from interact- native has taken advantage of during his ing with my peers, through CEMP, TMI three years in Ann Arbor. The under- and programs like IMAP [International standing that comes from working with Multidisciplinary Action Projects],” says peers on real-world problems is one Baptista, who describes his IMAP experi- reason students like Baptista choose ence in Kenya as “amazing.” the Ross School of Business. His five-member IMAP team worked TMI, an interdisciplinary partnership with a nonprofit seeking to introduce a between the Ross School of Business, passive solar oven to the region. “On the College of Engineering and industry, ground, we discovered the product was emphasizes leadership training and hands- not appropriate for the climate. It was on experience through internships. too fragile.” Another faith-based organi- On this project Baptista worked with a zation had developed an oven that was master of engineering in manufacturing not as vulnerable to dust, dogs and wind. student to implement a substantive “We recommended the nonprofit change at Honeywell. leverage its grant-writing expertise, col- “TMI was instrumental in helping me laborate with the faith-based organization transition successfully to a new career and take advantage of the infrastructure in an operations environment,” explains of Kenya’s coffee cooperatives to make Baptista, who worked in the medical and inroads in the passive solar oven market.” pharmaceutical fields prior to coming to Even though the client didn’t agree with Michigan and will join Honeywell after the team’s conclusions, Baptista says, “It graduation, initially in its information was an exciting project. We were able to technology division. apply our core course work to a project Baptista is only the second student to that sought to address social, economic earn a concentration in manufacturing and environmental needs.” BOB CULVER

DIVIDEND 35 SPRING 2005 into the WVF, bringing its total value to If it weren’t for Porter, now a general $3.5 million. partner of Trillium Ventures, the stu- “It’s rare that a first investment like dents might not have invested in

STEVE KUZMA this hits a home run,” says Will Johnson, IntraLase, says Thomas Kinnear, PhD MBA ’98, a member of the first WVF ’72, executive director of the Samuel student board. Another student board Zell & Robert H. Lurie Institute for member, John W. Cunningham, MBA Entrepreneurial Studies. Porter’s former ’00 and MS ’00, says, “We knew IntraLase partner, Mary Campbell, MBA ’79, had a good business plan, and it came to founder and general partner of EDF the WVF from a good source—EDF Ventures, was on the WVF advisory Ventures.” board when students made their initial Tony Baptista talks with Ford Motor Co. execu- In December, the Michigan Venture IntraLase investment and currently tives at a reception honoring and thanking Ford Capital Association presented its 2004 serves as fund manager for the eight- for providing fellowship support for third-year Investment Success Award for the best member advisory board. Corporate Environmental Management Program liquidation event of a venture-funded IntraLase was attractive, Porter says, (CEMP) students. Baptista is only the second company to WVF students and advisers for a number of reasons, including its student to earn a concentration in manufactur- and to Thomas S. Porter, MBA ’67, potentially huge market and proprietary ing through Tauber Manufacturing Institute and founder and former general partner of technology ensuring a competitive two master’s degrees through CEMP, a dual EDF Ventures, for that firm’s leadership advantage for an extended period of business and natural resources program. in launching IntraLase. time. IntraLase develops and markets

As president of Open for Business, the school’s student club for gays and lesbians, Baptista has raised the group’s profile through corporate recruiting events and by joining forces with the Law School’s larger Outlaw Group. Baptista, who also taught communi- cation studies to undergraduates in the College of Literature, Science, and the Arts for four semesters, says, “Michigan gave me a lot of opportunities. I came here to become as technically competent as possible. I soon discovered that the technical aspects of a business problem are often the easiest to solve; driving results comes from understanding organizational behavior and how it supports the company’s strategy. The school has prepared me to bridge those PAUL JARONSKI gaps and help a company achieve its strategic goals.” Investing in the 10 hours per week on the fund and receive academic credit. The WVF, one of the ✷✷✷ Next Hot Company University’s most competitive hands-on learning programs, annually receives 10 Wolverine Venture ennifer Baird, president and CEO of times more applications for positions on the J Accuri Instruments, presents an invest- fund than student slots available. Fund Scores an ment opportunity to members of the IPO Home Run Wolverine Venture Fund (WVF) before the The WVF currently has investments in MBA students quiz her on the technology, HandyLab, which has developed methods he Wolverine Venture Fund (WVF), value proposition, and marketing and sales for miniaturizing medical tests; Silverpop T the student-governed venture capital strategies for Accuri’s new approach to flow Systems, which has developed a computer fund at the Ross School of Business, cytometry. network that allows for the improved distri- picked a winner six years ago when it bution of e-mails that contain audio and invested in a promising new start-up The 19-member WVF, advised by an eight- video; Mobius Microsystems Inc., which called IntraLase. member board of entrepreneurs and venture enables circuit designers and manufacturers Last October, the ophthalmic medical capitalists, each year examines 60 potential to achieve higher levels of analog and device company became the first firm deals and listens to 10 pitches. In addition mixed-signal integration across process in the fund’s portfolio to go public. The to screening and assessing business plans, technologies; and PanCel, an early-stage initial public offering infused $1 million students perform due diligence and portfolio diabetes therapy company. tracking and management. They work about

DIVIDEND 36 SPRING 2005 ultra-fast lasers, related software and Will Johnson, who, disposable devices for LASIK vision as an associate at JP correction surgery. The firm’s technology Morgan Partners, is used to create the corneal flap, the focuses on mid- and critical first step. late-stage investing. “To be successful as a venture investor, Now an adviser to the you need to look for something that WVF, Johnson says, truly makes a difference, not an incre- “It is great experience mental change,” Porter says. “We to look at the deals thought IntraLase would be a terrific that come into the opportunity for the Wolverine Venture Wolverine Venture Fund because it had the kind of home Fund. We work run potential that a truly revolutionary with and learn from technology can have.” a very sharp group of In addition to working with the fund, students.” Porter teaches Managing Growth of New John Cunningham, Ventures, a second-year MBA class that new business devel- focuses on how companies plan for the opment specialist at future after they receive initial funding. the University’s “If you have a winning idea, the changes Office of Technology that come with rapid growth can be a Transfer, says, “The real distraction,” Porter says. “We talk skills I learned in the about what companies must do to man- Wolverine Venture age growth rather than be victims of it.” Fund prepared me As the institute’s first executive-in- for what I do now residence, Porter serves as a mentor and that I am on the other coach for MBA students who plan to side of the table, pre- launch or are developing a business. He senting University also conducts monthly roundtable ses- research to potential sions among student CEOs through the investors.”

University’s Entrepreneur and Venture “This is not MARTIN VLOET Club. Porter’s appointment is part of an Monopoly money,” expansion of Zell Lurie programs and says Tony Pandjiris, Members of the Wolverine Venture Fund 2004-2005 are, left to right: curriculum made possible through a new MBA ’05, a WVF First row, Greg Janus, MBA ’06, Ed Chao, MBA ’06, MS ’06, Patty $4 million gift from institute co-founder student adviser who Yang, MBA ’05, Grace Wu, MBA ’06, Karimah Malcolm, MBA ’05, Samuel Zell, AB ’63, JD ’66, chairman of is considering a Raghav Vasudeva, MBA ’05; second row, Todd Sullivan, MBA ’05, the board of Equity Group Investments career in venture Kyle Madan, MBA ’05, Tony Pandjiris, MBA ’05; third row, Patrick LLC in Chicago. The gift also supports capital or technology Kumm, MBA ’05, Jenny Barba, MBA ’07, MPH ’07, Ian Cummings, student scholarships and the new Program investment banking. MBA ’05; fourth row, Ted Omlid, MBA ’06, Raj Attal, MBA ’06, for Research Commercialization Potential, “To serve on the David Cho, MBA ’06; fifth row, Per Larson, MBA ’05, Shinya a 21-week program that places MBA WVF takes guts Chikagami, MBA ’06, Jason Miller, MBA ’06; sixth row, David Shelby, students on research projects to assess and due diligence. BBA ’62, MBA ’64, Carolyn Maguire, administrative assistant, Zell the projects’ business potential. Typically the fund Lurie, Will Johnson, MBA ’98; seventh row, Thomas Kinnear, PhD ’72, The WVF, which began in 1997 with invests $50,000 to Mary Campbell, MBA ’79, Margo Shapiro, Tim Faley, managing direc- six students, invested in IntraLase in $100,000 in a new tor, Zell Lurie; eighth row, Tim Mayleben, BBA ’84, Don Walker, MBA 1998, shortly after researchers at the deal. Besides capital, ’58, and Jim Price. Rows one through five are students. Rows six University’s College of Engineering and the other value through eight are faculty, staff and advisory board members. Not in Kellogg Eye Center founded the firm. we add to these photograph: Nikhil Mathew, MBA ’06, and Steve Weinstein, MBA ’98. In all, students directed the WVF’s total companies is the investment of $250,000 in IntraLase. opportunity to present their business director of the WVF and the Zell Lurie Administered by the Zell Lurie plans to the WVF, risk-free. We help Institute, said at an October 7 reception Institute, WVF invests primarily in companies with their presentations and celebrating the WVF and the IntraLase early-stage, emerging growth companies. introduce them to venture capitalists IPO. “The idea of the fund was to have It is the only university-based venture with whom we have relationships. a real-world experience for students to fund of its kind in the United States. Like We also help venture capital firms develop leadership skills. We don’t their predecessors, the 19 MBA students understand technology available at the know of any other fund in the country currently on the fund’s board research University of Michigan.” that lets students make these kinds of companies, evaluate business proposals “This is a milestone achievement for decisions.” and make investment decisions. the Wolverine Venture Fund, the Ross Working as part of the student invest- School of Business and the University of ment team opened career doors for Michigan,” Timothy Faley, managing

DIVIDEND 37 SPRING 2005 Real-world Global STEVE KUZMA Assignments Test Skills and Promote Entrepreneurship

Left to right, Stanley Frankel, AB ’63, MBA ’64, and faculty members Len M. Middleton and Andrew Lawlor

he world expanded for University years. What motivates the Frankels are “Coming in the spring, after completing of Michigan MBAs in 1995 and has the students—and their stories. the core curriculum, you get to apply T been growing ever since, thanks everything you learned right off the bat to international action-based learning Marketing a Drug in a real-world setting.” programs that turn students into globe- Delivery System He also appreciates the opportunity to trotting consultants. Their clients? Entre- For Katherine Emrich, MBA ’05, her travel and be exposed to other cultures and preneurs in high-tech fields seeking project was a first taste of international professionals working in those cultures. help with such necessities as marketing business. Emrich, whose background is in “It’s a time for personal development. research, U.S. market entry strategies and public health, and her teammates worked It’s an all-around great experience—the business plans. in 2004 with Chiasma, an Israeli firm right balance of work, play and learning,” For students, the programs have proven that has developed a way to deliver large- Chokshi says. invaluable because they test skills in an molecule drugs such as insulin in pill IMAP satisfies a degree requirement unprecedented fashion. Usually managers form rather than by injection. for first-year MBAs. Another inter- have to work several years before con- The Chiasma International Multidisci- national opportunity, also funded by the fronting such ambiguous and daunting plinary Action Project (IMAP) team Frankels, is the Global Projects course, business challenges. Thanks to Stanley interviewed more than 40 top executives a second-year elective that includes field Frankel, AB ’63, MBA ’64, and Andrew in the pharmaceutical, biotechnology, work in one or more countries. Lawlor, architect of the programs, Ross drug delivery and venture capital sectors Left to right, front row, Katherine Emrich and School of Business students are tested much of the life sciences industry in Canada, Neel Chokshi; back row, Lyssa Perryman, earlier, and in a nurturing environment. France, Germany, Ireland, Switzerland, Neela Morty, Nate Hill and Gitesh Dubal met Since 1995, 1,501 MBA students have the United Kingdom and the United with Chiasma representatives in Prague. worked with entrepreneurs in Africa, States as part of its research on the best China, Eastern Europe, Ireland and the way for the firm to market its technology. Middle East. Frankel and his wife Judy Neel Chokshi, MBA ’05, MD ’05, also have underwritten more than one-third of a member of the Chiasma IMAP team, the school’s international programs since used his medical background to explore 1996. They have sponsored the work of the nature of drugs sold by potential 538 students on 119 projects with Israeli- business partners. “IMAP is one of the based companies and recently committed reasons I enrolled in the business school. to extend their gift for an additional 10 The timing is great,” says Chokshi.

DIVIDEND 38 SPRING 2005 For the first time, the entire six-person Following up on the work of the 2004 Chiasma team enrolled in the elective team and of two other IMAP teams from Global Projects course in order to stay 2001 and 2003, a new crop of six MBA A Guide together and take on a new strategic students worked this spring on marketing planning project for Chiasma. “What I’ve strategies for other products in MGVS’ learned,” says Frankel, “is that you can- pipeline, including angiogenesis therapy to MAP not predict outcomes when supporting —a therapy used to encourage new educational programs. Clearly, this team’s blood vessels to grow a bypass around a riginally begun as a domestic program commitment to Chiasma exceeds our blocked artery, like a detour around a O in 1992, Multidisciplinary Action expectations. Their work is making a dif- traffic jam—for patients with arterial Projects (MAP) went international in ference for the company, their careers obstructive diseases of the legs and heart. 1995 with the school’s first IMAP team. and the patients whose lives will improve IMAP, with its international focus, is if this drug delivery system takes off.” Business Plan one of four categories of MAP—a seven- for a Novel Catheter week, intense-immersion program that all MBA students take in March and New Biosynthetic Graft May Another Israeli start-up firm, BioXim, April of their first year. With more than Benefit Dialysis Patients founded in 2003 by a cardiovascular 400 students participating each year, For their IMAP, Chris Hwang, Dong surgeon and a plastics engineer, also has MAP is the largest program of its kind Uk Kim, Adi Iskandar and Subbu benefited from Ross School expertise. in the nation. Students can choose from Thekenkattil, all MBA ’05, worked with BioXim is developing novel catheter IMAP, CMAP (corporate), EMAP (entre- Multi Gene Vascular Systems (MGVS) in technologies to solve the problem of hos- preneurial) or XMAP (experimental). Haifa, Israel, on a market survey and early pital-acquired infections. Approximately The Executive MBA program for senior- marketing entry strategy for a biosynthetic two million patients in the United States level executives also includes a MAP graft to use in patients with end stage renal suffer from such infections each year component each May though August. disease and undergoing kidney dialysis. and nearly 88,000 people die as a result, MGVS’ medical device—a bioengi- increasing the costs of the heathcare neered tube inserted into the circulatory system by approximately $5 billion. system—will be especially useful for eld- A 2004 IMAP team developed a market erly patients and patients with weak blood strategy that included looking at poten- As part of his IMAP vessels who must receive dialysis two to tial test markets and talking with experts experience, physician three times per week. Talking to “everyone in the field. BioXim’s IMAP assignment Salvatore Pacella, along the value chain”—doctors, nurses, this spring, with a new four-person team, MBA ’05, traveled government officials, private insurers, was a business plan. to Germany and the manufacturers of equipment and patients— For physician Salvatore Pacella, MBA Netherlands to talk was an eye-opener, says Kim, an engineer ’05, a member of the 2004 BioXim team with other physicians before coming to the Ross School. and a plastic surgery fellow at the University about potential markets “I like to work on real-life things of Michigan Health System, IMAP “was for novel catheter rather than theoreticals,” says Hwang. a chance to study in depth a topic that I technologies to solve “In courses, it’s only a grade that is on had an interest in as a physician. It gave me the problem of hospital-acquired infections. the line. With this, there’s a lot at stake. an opportunity to take some of the core You pay more attention. It forced me to concepts, especially in marketing and put in 110 percent every single day.” strategy, and apply them in a real-world meets with IMAP students in mid-April. The international aspect of the IMAP setting. The IMAP experience validates Over Zingerman’s sandwiches, Frankel talks experience appealed to Hwang, who your education.” with students about their projects, asking quickly learned that a small company in Pacella, whose assignments included where they did their undergraduate work Israel can be a major player in the world traveling to Germany and the Netherlands and why they chose Michigan. “Students market. The team also gained an under- to talk with physicians about potential get smarter every year,” he says. Many of standing of differences in regulatory laws markets for BioXim’s technology, says them, he has learned, come to the Ross in the United States and Europe. that now when he sees a change that needs School for programs like IMAP. “I know to be made in healthcare delivery he has they don’t come for the weather.” Left to right, Dong Uk Kim, Ojas Patel, MBA the MBA toolkit. “I have the skills to do When the school conducts its student ’04, Chris Hwang, Adi Iskandar and Subbu data-driven analysis.” satisfaction surveys, IMAP is always a Thekenkattil in Frankfurt, Germany Frankel credits the success of inter- favorite, he adds. For Frankel, it isn’t the national team-based learning projects to product that counts. “For me, it’s the edu- Lawlor and Global Projects co-director cational process. If the team gives the entre- Len M. Middleton, who also teaches cor- preneur a roadmap to follow to develop porate strategy, international business a product and take the company to an and entrepreneurship. IPO, that’s ideal, and it gives the students “This is Andy’s program. Andy has been a truly unique learning opportunity that the driving force, the marketing depart- has real impact on a growing company.” ment, the glue. Andy and Len make a Each June, Frankel reads the students’ great team,” says Frankel, who each year final reports. “I go through them all.

DIVIDEND 39 SPRING 2005 Some are very technical,” says Frankel, who shuns computers and points to a No. 3 pencil with a large eraser, noting, Frankel: You Learn So “It is the most technologically sophisti- cated equipment on my desk.” Frankel also points with pride to the Much in the Real World relationships that have developed over the years between the school, students, alumni ther schools teach the case study the area. Judy Frankel devotes her entre- and two high-tech incubators in the “Omethod. Our students can write preneurial energies to The Antiques Galilee region of Israel that generate many the case studies,” says Stanley Frankel, Centre of Troy, her antiques gallery. of the school’s international assignments. AB ’63, MBA ’64. Frankel and his wife Frankel has no illusions that every The incubator is an equity partner. “If Judy of Bloomfield Hills, Michigan, became IMAP or Global Projects graduate will the deal hits for a particular drug or device, involved in International Multidisciplinary turn into an entrepreneur. However, he the engineer or scientist and the incubator Action Projects (IMAP) and the Global does believe that students benefit from win. This is an economic thing for them. Projects course in 1996 and since then on-the-job experience in a different coun- The government gives the company have sponsored the work of 538 students on try. “You learn so much in the real world. $250,000 for two years. The hardest 119 projects with Israeli-based companies. You get to travel and earn credit for it. Who thing is when students have to tell the The Frankels, strong supporters of the wouldn’t want to do this?” asks Frankel, entrepreneur bad news—that there is no business school and the University for for whom study abroad was not an option market for the product or someone else more than 20 years, have invested more when he was at the business school. already is doing something similar and than $2 million in international action- That said, Frankel adds, “No one had the product won’t fly,” Frankel says. based learning programs and recently a better time in Ann Arbor than I did. I committed another $3 million over 10 years had some great professors. I was an eco- Ties to Galilee to support Israeli business projects that nomics major in the College of Literature, Scott Dougall and Jeff Camiener, both fit into the school’s action-based learning Science, and the Arts and had Dean MBA ’96, were part of a second-year model and promote entrepreneurship. Haber, who was an outstanding professor. MBA team that worked on the first incu- “We couldn’t have sustained the growth In the business school, I had Professor bator entrepreneurial project sponsored in our international programs without George O. Dykstra—who liked to remind us by the Frankels in 1996. The team was Stan and Judy Frankel,” says Andrew what his initials spelled—as well as Pro- assigned to a Russian doctor at the Yozmot Lawlor, director of IMAP and the Global fessors James Pilcher and Paul McCracken. HaEmek Technological Incubator in Projects course. “Professor McCracken’s class was a Upper Galilee—one of the incubators “We support IMAP and the Global Tuesday-Thursday-Saturday morning that continues to partner with the Ross Projects course because we’re entrepreneurs. class. He scheduled it that way on pur- School. The students spent a week work- This isn’t corporate America,” says Frankel, pose to separate those who really wanted ing with the entrepreneur on a business looking out the windows of his Troy, to study economics and budgets,” recalls plan for a device to Michigan, office at some of the holdings of Frankel, with a smile. remove hemor- Frankel Associates. The firm is a privately “The Class of 1964 was male, Caucasian rhoids. Students held commercial real estate development and corporate. There was only one female lived on a kibbutz, and management company that was found- classmate. There was no diversity. It’s a and much of their ed by his father Samuel Frankel. Frankel different world today and a much better work was done Associates developed and owns Somerset place in my mind.” Most of his classmates through translators. Collection, an upscale shopping complex went into finance in large corporations Nine years later, in Troy that is home to Neiman Marcus or major accounting firms. Some went both Dougall of and Saks Fifth Avenue, among other fine into marketing. There was nothing for Thunder Bay, stores. The company also developed and entrepreneurs, recalls Frankel. Ontario, and owns office buildings, apartments, a hotel, Nothing until Stanley Frankel decided Scott Dougall Camiener of a golf course and retail establishments in he would make a change. MBA ’96 Birmingham, Michigan, maintain contact with the software. Camiener was president of we were not comfortable, in a foreign doctor and the incu- Efficient Engineering Company in Troy, country where we didn’t speak the lan- bator in Galilee. Michigan, which was recently sold to guage. Michigan is an intense team envi- Dougall is director Modern Engineering. He is now Modern ronment. This cranked it up a notch.” of content delivery Engineering’s vice president for global “Andy’s class gave us a global perspec- software for engineering strategy and mergers and tive,” Camiener adds. “We learned about Skystream Networks. acquisitions. cross-cultural communications, dealing As such, he is Of his team experience, this is what with different business methodologies responsible for the Dougall has to say: “It was excellent because and international market entry, but the design, development it put all of us in the same unique situation best part of the experience is that Stanley Jeff Camiener and marketing of where we had to be very focused on our Frankel became a mentor.” MBA ’96 the zBand suite of goal. We were all living in a place where Mary Jo Frank

DIVIDEND 40 SPRING 2005 ALUMNI ACTIVITIES Guangzhou More than 20 alumni and new students, Austria Chicago most of whom are from Guangzhou and Members of the Austrian Alumni Club The Chicago Alumni Club enjoyed Shenzhen, met for a happy hour in an met with Gwyneth Slocum Bailey, associ- a family day at Chicago’s Museum of eatery on the Pearl River this summer. ate director of admissions, for dinner at Science and Industry on November 6. Albert Yau, MBA ’04, talked about the the Viennese restaurant Gmoakeller in Alumni and their families heard a pres- MBA program and the Ann Arbor cam- November. “We now hope to institution- entation by Valerie Waller, MBA ’89, the pus and showed a welcome video featur- alize this event and increase the turnout,” museum’s vice president of marketing ing Dean Robert J. Dolan. reports Joerg Windbichler, MBA ’96. and public relations, and participated in Alumni in Austria are actively involved the production of a movie at the muse- in recruiting prospective MBAs to the um’s Action! Adventure in Moviemaking Ross School of Business. Bailey’s visit exhibit before exploring the museum and was part of a 14-city MBA recruiting trip enjoying an ice cream social. For more in Europe. For more about the Austria information about alumni activities in Alumni Club, contact Windbichler at Chicago, contact Greg Bolino, MBA ’92, [email protected]. at [email protected].

HOUSTON — Edwin Watts, MBA ’03, and Ozlem Kaleli, MBA ’95, were among the Ross School of Business alumni who attended the Houston Happy Hour in July. For more about alumni activities in Houston, contact Watts at [email protected].

AUSTRIA— Left to right, Otmar Bodner, MBA CHICAGO—Among the alumni and family ’94, with wife Elizabeth seated in front of him, members attending the Chicago Museum of India Matus Rajnak, MBA ’00, Gwyneth Slocum Science and Industry event were Rich Austgen, Alumni in Bangalore held a send-off Bailey from admissions, Joerg Windbichler, MBA ’92, wife Patricia, mother Helen and children party for new MBAs to the Ross School MBA ’96, Togrul Kocharly, MBA ’02, Robert James and Caroline; Andrea Bare, MBA ’89, of Business from India in July. Ranjit Kraska, MBA ’95, and his wife Christa seated with children Colette and Fiona; Jeff Elliott, Shah, MBA ’81, who organized the next to him gather in Vienna for dinner. MBA ’93; Brian Simpson, MBA ’04, and wife event, writes, “Needless to say, we had Justin; Greg Bolino, MBA ’92, wife Deb and a great time with beer, wine and free children Nicholas and Olivia; and Yehuda advice to the admits.” For more about Cohen, MBA ’83, wife Ellen and son Joe. alumni activities in Bangalore, contact Shah at [email protected].

BEIJING—Alumni and current students met at a Ross School of Business networking reception in Beijing in August. Left to right, Hao Wu, MBA ’00, Mengdan Chu, associate director of admissions, George Weinmann, MBA ’04, Sarah Chen, MBA ’06, Ron Li, MBA ’98, Albert Yau, MBA ’04, Hao Sun, MBA ’00, Kevin Xu, MBA ’06, Peng Chen, MBA ’05, Tanya Zhu, SOS, Shaun Zhu, MBA ’05, Jeff Lee, MBA ’97, and Yukang Gao, MBA ’06, at the reception. For more about alumni activities in INDIA—Left to right, Olga Ananina, MBA ’03, Ranjit Shah, MBA ’81, Sada Sankar, MBA ’01, Sunoor Beijing, contact Sun at [email protected]. Kaul, MBA ’06, Shobhit Rana, MBA ’06, Sivaprasad Kancherla, MBA ’06, Javier Rodriguez, MBA ’03, Manish Bansal, MBA ’06, and Keshava Setlur, MBA ’02, celebrate at Geoffrey’s Pub, Bangalore.

DIVIDEND 41 SPRING 2005 Minnesota Minnesota Club President Neil Janmohamed, MBA ’02, reports 150 people sailed on the club’s fourth annual MBA Boat Cruise on Lake Minnetonka in July. The group included 50 Ross School alums plus alumni from Kellogg, University of Chicago, Wharton and Harvard. The outing was organized by Trang Nguyen, MBA ’03, and other Ross School alumni with partial proceeds going to Ronald McDonald House. Jessica Linnert, MBA ’05, organized a happy hour in August. For more about the Minnesota Alumni Club, contact Janmohamed at [email protected]. ITALY — Ross School of Business alumni and family members recently gathered for a reunion in Cesenatico, Italy. The group included: Simone Maggioni, MBA ’93, Bruno Piperno, MBA ’85, Celeste Piperno, Patrizia Maggioni, Lara Marcon, Massimiliano Marcon, MBA ’96, Alberto Rovero, New York MBA ’00, Giovanna Rovero, Gianluca Sichel, MBA ’98, Alessandra Sichel, Cecilia Cesarei, Alberto The Ross School of Business Alumni Luoni, MBA ’00, Riccardo Cesarei, MBA ’98, Lorenzo Cesarei, Gianmauro Dell'Olio, EE-ATK ’01, Club of New York and the University of Alessandra Luoni, Roberta Dell'Olio, Pietro Gandolfi, EE-ATK ’01, Angela Gandolfi, Giulia Gandolfi. Michigan Entertainment Coalition spon- For more about alumni activities in Italy, contact Riccardo Cesarei at [email protected]. sored a panel discussion and networking reception titled “The Business of Indepen- Latin America Mexico MBA classmates and spouses celebrated The Mexico Alumni Club hosted an a five-year reunion in Buenos Aires, informational and networking event for 25 Argentina, at the September wedding of prospective students at the Omei in Mexico Adrian Guzzoni, MBA ’99. Attendees City on September 14. Alumni who par- included Miguel Madrigal, MBA ’99, ticipated included Kuan Tai, MBA ’00 and Diego Regueiro, MBA ’99, Alonso León owner of the Omei, Ignacio Rodriguez, de la Barra, MBA ’99, Romulo Thoms, MBA ’00, Fernando Silva, MBA ’02, Hugo MBA ’99, Jeff Hassman, MBA’99, Bretón, MBA ’04, German Quevedo, Gerardo Ruiz, MBA ’99, Patricia Gomez, MBA ’00, Luis Rivero, MBA ’01, Victor SOS, Montse Junco, SOS, and Maripili Navarrete, MBA’02, and Gerardo Ruiz, Hassman, SOS. MBA ’99. For more information about NEW YORK—A standing-room-only crowd of alumni activities in Mexico, contact Ruiz Ross School of Business and Michigan alumni at [email protected]. gathered for a panel discussion about “The Business of Independent Film” held at New York University.

dent Film” in June at New York University. Candace TenBrink, MBA ’97, moderated the panel, which included Ira Deutchman, president and CEO of Emerging Pictures, a digital film production and exhibition company; Richard Guay, independent writer and producer and director of devel- opment and production at Altos Entertain- ment; John Lyons, president of production at Focus Features, the distribution unit of Universal Pictures; and Mary Jane Skalski, partner at Antidote Films and selected by Variety as a “Producer to Watch.” TenBrink founded Altos Entertainment, a production company that brings female-centric stories to a global audi- LATIN AMERICA—Left to right, Gerardo Ruiz of Mexico, Diego Regueiro of Argentina, Miguel ence. For more about the New York Madrigal of Venezuela, Alonso León de la Barra of Mexico, Jeff Hassman of the United States and Alumni Club, contact Cecil Shepherd, Romulo Thomas of Panama, all MBA ’99, gather for their friend’s wedding. MBA ’00, at cashephe@ umich.edu.

DIVIDEND 42 SPRING 2005 ALUMNI ACTIVITIES

Seattle Members of the Ross Seattle Alumni Club and the Seattle Business School Alliance enjoyed a perfect Seattle evening and moonrise at the first annual Summer Sunset Cruise of Puget Sound in July. More than 115 attendees took advantage of hors d’oeuvres, drinks and live music aboard the Spirit of Seattle and enjoyed spectac- ular views of the city and surrounding islands. For more about the Seattle Alumni Club, contact William Lewallen, MBA ’04, at [email protected]. SHANGHAI — Left to right, University of California, Los Angeles alumnus and moderator Kai Guo from SMN, and panelists Thomas Shanghai Rosenthal, MBA ’95, Linktone CEO Raymond Alumni in Shanghai celebrated the Yang, Warburg Pincus investment manager naming of the Stephen M. Ross School Frank Wei, Softbank vice president Andrew of Business and the school’s No. 1 Wall Qian, ChinaVest vice president Jun Zhao and Street Journal ranking with Ray Reilly, TDF vice president Darren Ho discuss venture associate dean of executive education, capital and entrepreneurship in China. and his wife Ginny on September 21. On October 21, the Shanghai MBA Network and Jiaotong University Business NET IMPACT — More than 70 alumni and School organized a panel discussion on students affiliated with the Corporate Environ- venture capital and entrepreneurship in mental Management Program at the Ross School China. Panelists included Thomas of Business attended the 12th Annual Net Rosenthal, MBA ’95, who has started his Impact Conference held November 11–14 at second e-commerce Web site in Columbia Business School, New York City. Among Shenzhen, China. More than 200 attend- the participants were back row, from left, ed the event. For more about alumni Elizabeth Ross Lieberman, MBA ’96, Meghan activities in Shanghai, contact Daniell Chappel, MBA ’02, Eileen Gonthier, MBA ’03, Chen, MBA ’00, at [email protected]. SHANGHAI— Left, Thomas Rosenthal, MBA and Mark Tholke, MBA ’03; front row, from left, ’95, and Raymond Yang, CEO of Linktone, talk Rachel Fineberg Sylvan, MBA ’00, Cynthia about venture capital in China. Casas, MBA ’04, and Scott Baron, MBA ’04.

SHANGHAI — Front, left to right: Arthur Yeung, PhD ’90, executive director of the Organiza- tional Effectiveness Lab and adjunct professor at the Ross School of Business; Ginny Reilly; Ray Reilly, associate dean of executive education. Back, left to right: Jerry Liu, MBA ’02, Carl Chen, MBA ’03, Yiren Dai, MBA ’02, George Wang, MBA ’03, and Daniell Chen MBA ’00.

SPAIN—Members of the Spain Alumni Club met for an evening with Professor C. K. Prahalad in June. Left to right, Jeff Hassman, MBA ’99, Emilio Viñas, MBA ’98, Juan J. Pérez Rodriguez, MBA ’99, Juan López-Cotarelo, MBA ’00, Prahalad, Josep Messa, MBA ’87, and Javier Navarro, MBA ’99. For more about the Spain Alumni Club, contact Hassman at [email protected].

DIVIDEND 43 SPRING 2005 “Over the years, my education has given me respect for individual enterprise and the self-confidence to try something new when necessary,” notes Betty. You can Class Notes reach her at [email protected].

Jack Caminker, BBA ’46 Betty Comstock Wilson, BBA ’53 Jerome A. Mussman, MS ’56 was voted into the “Eight over Eighty” has had many odd jobs, as she put it, “My wife Lila and I are enjoying our Senior Adults Hall of Fame of the over the past 50 years, including book- retirement in St. Petersburg, Florida. Oakland County Jewish Services. Jack keeper, I am serving as an exempt organization has worked in commercial real estate for health aide, volunteer on a when-needed basis. his entire business career. “I really never substitute Lila also volunteers her services as a have retired,” he says. “I joined SCORE teacher, human resources specialist to any (Service Corps of Retired Executives) family exempt organization that can use her about 14 years ago, which counsels for- services expertise,” says Jerry. You can reach profit organizations. I also joined the counselor, him at [email protected]. Detroit Executive Service Corps, which Realtor focuses on nonprofit causes. I have had and, most Richard Rogel, BBA ’70 the pleasure of helping the Detroit Board important, of Vail, Colorado, the founder and for- of Education teach their principals to raising a mer chairman of Preferred Provider operate each building.” Jack has no family. “During this time I was involved Organiza- intention of slowing down. “Going to in building seven different homes, and tion of business school was probably one of the developed a strong opinion on what kind Michigan, most important things I did in my life. of things I like — simple, but functional has been God gave me two hands—one to take and easy to maintain,” Betty says. Today, named the with and one to give with, so I try to do she is retired and building a small “look- first recipi- both,” says Jack, who, with several col- out” cabin in the Plumas National Forest ent of the leagues, spends a day with engineering in northern California. “This home will University seniors twice a year teaching about busi- have solar power and be a place of of Michigan ness and marketing plans. You can find immense enjoyment to me,” says Betty. David B. Jack, who lives in nearby West Bloomfield, “I’m planning for quality time on a small Hermelin through the Detroit SCORE office at budget.” Betty reminisced about the Volunteer Fundraising Award in recog- 313.226.7947. classes she enjoyed with Professors nition of his exceptional fundraising Paton, Griffin, Dykstra and McCracken. Terry Davis Heads Council of Europe

erry Davis, MBA ’62, who served bringing about political, legal and in the British Parliament for 28 constitutional reforms. Davis has T years, is now Secretary General of been a member of the Council’s Anne and Terry Davis in Strasbourg, France the Council of Europe. Major assignments Parliamentary Assembly for 12 years and include reducing the backlog of cases at president of the Socialist Group in the the European Court of Human Rights Assembly since 2002. While at Michigan, Davis worked as a and making the Council of Europe the “I have a vision of Europe as part of a research assistant to Paul W. McCracken, leading organization in Europe’s fight world where men and women are treated the Edmund Ezra Day Distinguished against terrorism. fairly and equally—a Europe where peo- University Professor Emeritus of Busi- The 46-country Council of Europe ple live in peace on the basis of mutual ness Administration, Economics and was founded in 1949 to defend human respect without any discrimination based Public Policy. “Terry was very easy to rights and parliamentary democracy. on gender, sexual orientation, ethnic ori- work with, very able. I’m not surprised Since 1989, the Council’s main tasks have gin or religious belief,” Davis said follow- he has come a long way. I wish him the been to act as a human rights watchdog ing his election in June. “The Council of best,” McCracken says. for Europe’s post-communist democra- Europe is the best way to turn that vision Davis and his wife Anne live in cies and to assist those countries in into a reality.” Strasbourg, France.

DIVIDEND 44 SPRING 2005 CLASS NOTES ation under 501(c)(3) or 501(c)(4) of the CEO: Secrets from the Berkshire internal revenue code for a term expiring Hathaway Managers, 101 Reasons to leadership on the University’s behalf. June 10, 2007. The board will work to Own the World’s Greatest Investment: This new award honors the late David promote a healthy economic climate by Warren Buffett’s Berkshire Hathaway Hermelin, BBA ’58, Detroit-area entre- fostering job creation, retention and and Warren Buffett Wealth: Principles preneur and philanthropist, and former expansion through the promotion of and Practical Methods Used by the U.S. Ambassador to Norway. “Volun- investment in venture capital businesses World’s Greatest Investor. He is host teering was his life’s blood, and he loved specializing in early-stage and seed of the Buffett CEO Talk video series — the University with a passion,” said investments. conversations with the Berkshire Doreen Hermelin, speaking of her fami- Hathaway managers filmed before a ly’s pride that the newly created award Daniel Short, MBA ’74, PhD ’77 live audience and broadcast on public bears her late husband’s name. David became dean of the M. J. Neeley School television. Robert resides in Tampa, Hermelin was a tireless and exuberant of Business at Texas Christian University Florida, and can be contacted at volunteer for many organizations. He in fall 2004. He had been dean of the www.robertpmiles.com. served on the national committee for the Richard T. Farmer School of Business University’s campaign in the 1980s and Administration at Miami University, Mary Kay Haben, MBA ’79 was major gifts co-chair of the Campaign Ohio, and professor of accountancy. was elected to the board of directors at Steering Committee for the billion-dollar Prior to that he served as dean of Kansas Liz Claiborne Inc. in May 2004. For Campaign for Michigan in the 1990s. He State University’s College of Business more than 20 years she has held various also served as co-chair of the Detroit Administration and held several high- positions of increasing responsibility Major Gifts Committee. The award will level administrative posts at the University within Kraft Foods Inc. Most recently, be presented annually to volunteers of Texas McCombs School of Business. she was appointed senior vice president– whose fundraising efforts for Michigan Short is co-author of the widely used Global Convenient Meals & Grocery emulate the dedication Hermelin showed Fundamentals of Financial Accounting. Sectors. to the University. While at the University of Texas, he received the Undergraduate Business Amanda Levenson, BBA ’81 John L. Coker, MBA ’72 Council Award for Teaching Excellence, a member of the Foreign Service since As the CFO of BioReliance, John led the Texas Excellence Teaching Award 1989, has been posted to Kabul, Afghani- the team that acquired its chief rival and the Outstanding Graduate Business stan, since April 2004, serving as the con- and then sold the combined companies Professor Award. He also has been troller with the Agency for International for $570 million in February 2004. awarded numerous fellowships. Develop- These deals allowed him to develop his ment. Last new firm, Bridge Atlantic Partners, for Peter Hoekstra, MBA ’77 fiscal year assisting smaller companies in buying was named chair of the House Perma- she helped and selling other life science companies. nent Select Committee on Intelligence to obligate The firm focuses on assisting technology- in September 2004. Peter was vice presi- just over rich companies in Europe in finding dent, product management, for Herman $1.8 billion capital-rich solutions in the U.S. The Miller Inc. from 1977 to 1992, then ran of develop- firm is affiliated with the largest account- for and won a Congressional seat and ment assis- ing, investor relations, legal and insur- has been a U.S. Congressman since 1992. tance to ance firms in the world. It has offices He stated he will use the same plan he fund the in Washington, DC, and Paris. You used at Herman Miller: “Stay focused U.S. program for rebuilding the country. can reach John at jcoker@bridge- and do a good job. Then you will be She lives in government-furnished quar- atlantic.com. amazed what doors may or may not ters, a converted shipping container open for you.” approximately 7 x 14 feet. Amanda may Thomas Kinnear, PhD ’72 be contacted at [email protected]. the Eugene Applebaum Professor of Robert Miles, BBA ’77 Entrepreneurial Studies at the Ross is an internationally renowned author, Corinne Grousbeck, BBA ’84 School of Business, recently was appoint- speaker and Warren Buffet expert. He has been elected to Perkins School for ed by Governor Jennifer Granholm to has created assorted audio and video the Blind’s board of trustees. Corinne is the Michigan Early Stage Venture Invest- programs and has appeared on radio an active supporter and board member ment and TV of several Corporation programs charities board of on four serving directors continents. children, to represent He has raising statewide written millions of organi- three dollars zations books: The through her exempt Warren work. A from tax- Buffett founding

DIVIDEND 45 SPRING 2005 Educational Journeys Lead to New Zealand

hen Marc H. Anderson, MBA just before graduating. ’93, joined the Waikato They wed in 1994, now W Management School, New have a two-year-old son Zealand’s number-one research-led Magnus, and an infant business school, as a professor in organi- son, Maximus, born on zational behavior, he didn’t expect to Christmas Day. find a Michigan connection. But a famil- Koslow chose the iar Midwestern accent was just down the MBA over PhD programs hall—Scott Koslow, MBA ’85, professor in archaeology and political science, Scott Koslow, left, and Marc Anderson stand in marketing. They soon discovered they quickly falling in love with marketing, outside the Waikato Management School in both started very young in Michigan’s advertising and innovation. He now New Zealand. The Maori wood carving is done graduate program—Koslow at only 20 combines these three themes in research- in a modern style by a local artisan. “It is a and Anderson at 22. For most MBAs, ing advertising creativity. “Michigan Maori tradition to have carvings placed outside Michigan is the final hurdle before rock- faculty like Berger Wernerfelt opened buildings around the door to welcome visitors. eting up to the corner office. But for my eyes to business,” Koslow recalls, We are standing next to only a small sample them it was where they started long “but after graduation, I soon figured out of what is actually here. And yes, they are educational journeys that still continue. I was a hopeless academic and missed stunning,” Koslow says. Anderson entered the Michigan PhD Michigan’s intellectual environment.” program in marketing, but switched to Koslow went on to a marketing PhD at research. “Where else in the world can the MBA program after the first year. the University of Southern California I do top academic research and still There he was influenced by Karl Weick’s and has won the Journal of Advertising’s afford a house with views straight out “sensemaking” perspective, which led Best Article Award. His wife, Trisha, also of Lord of the Rings?” says Koslow. him to pursue an organizational behavior teaches marketing at Waikato and they They are thinking about forming a PhD at Minnesota. Highlights at have two children, Nina, 6, and Katie, 3. Michigan alumni chapter. Anyone Michigan included taking fantastic class- Anderson and Koslow were both who is interested can reach Koslow at es by John Tropman, eating at Dinersty attracted to New Zealand’s climate and [email protected]. lifestyle, and the Waikato Management restaurant and meeting his wife Fred Wessells Christianne at the Nectarine Ballroom School’s commitment to world-class

member of the Children’s Hospital enjoyed the exciting game and victory,” Boston Trust, she chairs the trust’s mar- says Tom, who can be contacted at keting committee. She previously served [email protected]. as vice president at Saatchi & Saatchi Advertising in San Francisco and also Duane K. Kuizema, BBA ’84 has held account management positions is a special agent with the Federal Bureau at other agencies. She lives in the greater of Investigation assigned to the New Boston area with her husband Wycliffe, York field office. A recipient of the 2004 principal owner of the Boston Celtics, Attorney General’s award for distin- and their two children. guished service, special agent Kuizema’s Tom Jacques, BBA ’84 recent was promoted in June 2004 to brand assign- manager, global business development at ments have ✷✷✷ Paper Converting Machine Company, a taken him manufacturer of production machinery to Yemen, FAX your class note to Dividend for flexible packaging, nonwovens and Afghani- 734.647.2401 sanitary tissue industries. “My family and stan and I attended my 20th reunion last October, Iraq. “I am ✷✷✷ had a wonderful family experience and very fortu- nate to

DIVIDEND 46 SPRING 2005

CLASS NOTES Jeff Weiss, BBA ’90 raised over $2 million in the fight against was promoted to partner in the tax prac- breast cancer. “Changing careers has work for a great ‘company’ and even tice of Ernst & Young’s New York office truly been great,” says Lisa, “and I feel luckier to work with great people,” says in October. Jeff has more than 14 years’ my MBA has afforded me the skills to Duane. “Though my career path has taken experience make a difference in the fight against me from the University of Michigan to serving cancer.” Donations can be made in sup- the Army and now the FBI, the personal multina- port of these programs and more at and professional satisfaction I have tional pub- www.cancer.org, and Lisa can be reached achieved along the way are priceless. To lic and pri- at [email protected]. those agents and soldiers still in harm’s vate com- way, God bless and Godspeed home.” panies and Scott Harrison Finch, MBA ’93 currently recently joined Novi, Michigan-based Sayan Chatterjee, PhD ’85 serves as Cooper-Standard Automotive as vice is professor of management policy at the interna- president and treasurer. He is responsi- the Weatherhead School of Management tional tax ble for all at Case Western Reserve University in service line leader on several large New global Cleveland, where he specializes in com- York accounts. Jeff lives on the upper treasury petitive strategy, corporate strategy, east side of Manhattan, is the father of functions, mergers and acquisitions, e-commerce, twin boys and is very active in the com- including corporate governance and strategic risk munity. debt fund- management. He recently published his ing, cash latest book, Failsafe Strategies, which has Keeva L. Terry, MBA ’92 manage- become one of amazon.com’s best-sellers was appointed associate professor of law ment and and can be found at www.amazon. at the Roger Williams University Ralph risk man- com/exec/obidos/ASIN/0131011111/. R. Papitto School of Law in Bristol, agement. You can contact him at Rhode Island, on January 1. She will A licensed attorney in three states, Scott [email protected]. teach federal income taxation, contracts brings over a decade of Wall Street and and sales. After receiving her MBA, international corporate finance experi- John Ivanko, BBA ’89 Keeva worked in New York as a tax ence to Cooper-Standard, having worked Endeavoring to prove that energy needs consultant for Ernst & Young. When on 65 successful financings totaling over can be met in our backyards, Inn she graduated from Columbia University $32 billion while previously employed at Serendipity Bed & Breakfast, owned by School of Law in 1998, she became an UBS Investment Bank, GECC, BHF- John and his wife Lisa Kivirist, powers associate in the tax, mergers and acquisi- Bank AG and American Electric Power the small business and organic farm with tions department at Skadden, Arps, Slate, Company. Cooper-Standard is a leading a 10kW Bergey wind turbine and .5kW Meagher & Flom in New York, where global manufacturer of fluid-handling, photovoltaic system. How they did it is she was awarded the firm’s Pro Bono body-sealing and NVH control systems captured in their latest book, Rural Public Service Award for three consecu- for automotive vehicles. The company Renaissance: Renewing the Quest for the tive years. In 2002 she joined Wilmore employs 14,000 and operates in 46 loca- Good Life. John and Lisa are innkeepers Equine LLC in Maryland where she tions in 14 countries around the globe. in rural Wisconsin, organic growers and served as in-house counsel. Keeva has copartners in a marketing consulting been admitted to the bars of New York, Rajeev Agarwal, MBA ’93 company. John also is an award-winning New Jersey, Maryland and the District of is co-founder of MAQ Software in photographer. Former advertising agency Columbia. Redmond, Washington. Prior to that fast-trackers, they now share their farm he worked at Microsoft Corporation in with their son, two llamas, a flock of free- Lisa D. Andujar, MBA ’93 several product management groups. He range chickens and millions of ladybugs. is director of income development at the also holds a B. Tech degree in mechani- See www.ruralrenaissance.org for more American Cancer Society in New York cal engineering from the Indian Institute information about their book, and visit City. After business school, she spent of Technology and his master’s degree in www.innserendipity.com to make reser- 8-1/2 years at AT&T Corp. in consumer engineering vations. and business marketing. She supported from Iowa the launch of services such as AT&T State Randal Rabe, MBA ’90 WorldNet Service. Lisa served as vice University. was promoted to president and CEO president of the board of directors for MAQ of United Bank & Trust in Tecumseh, the Martin Luther King Jr. Youth Center Software is Michigan, on January 1. Randal joined in New Jersey and helped raise nearly a software the bank two years ago as president and $1 million for the Abyssinian Baptist consulting chief banking officer. Prior to that he Church in Harlem, New York. Today, company served for five years as group controller Lisa manages the income development that special- for a furniture maker in North Carolina team in Queens and has managed such izes in and 13 years with Tecumseh Products events as Making Strides Against Breast developing business applications that Co. in Tecumseh as corporate controller. Cancer and Daffodil Days, which have improve clients’ efficiency, profitability

DIVIDEND 48 SPRING 2005 CLASS NOTES Michelle Berger, MBA ’95 Amy has substantial corporate experience was promoted in fall 2004 to senior vice in both human resources and program and ability to conduct commerce. president, current member marketing, at development and is responsible for They focus on all aspects of custom soft- Bookspan in New York City. “I head up coaching students and student groups ware development, advanced database the catalog marketing to some 10 million and acts as a student liaison for a variety development, and quality assurance and members across 30 book clubs,” says of non-academic activities. She can be testing. The Seattle Times published two Michelle. Bookspan is jointly owned by reached at [email protected]. features about Rajeev and his company. Bertelsmann and Time-Warner. You can find these at http://seattletimes. Elizabeth Ross Lieberman, MBA ’96 nwsource.com/html/businesstechnology/ Amy Cell, BBA ’91, MBA ’95 one of the co-founders of the school’s 2002001987_india11.html and was appointed senior associate director Net Impact chapter in 1996, lives in http://seattletimes.nwsource.com/html/ of the new Office of Student Life at the Atlanta and is membership director for businesstechnology/2002001999_india Ross School of Business in October. Net Impact. She married fellow Wolverine agarwal11.html. You can contact Rajeev at [email protected].

Thomas R. Johnson Jr., BBA ’93 recently was voted partner at Perkins The Best of Both Worlds Coie in Portland, Oregon. He focuses on business and commercial litigation, ew children grow up dream- including ing about IPOs, NPVs or P/E antitrust, F ratios, but rock and roll often intellectual comes to mind. Such was the case property, with John Levisay, MBA ’97, whose and securi- father purchased his first record— ties and Superstition, Alex Holderness, MBA shareholder ’98, who appeared on Minneapolis’ disputes. famed First Avenue stage at age 14, He current- and Brian Osborn, MBA ’98, who Left to right, Negative Feedback members ly serves as learned every Eddie Van Halen solo Brian Osborn, Alex Holderness, drummer Joe chairperson- note for note in the bedroom of his Cirone, John Levisay and Steve Corral on the elect of the Oregon State Bar’s Antitrust Birmingham, Michigan, home. guitar give a winning performance at the Rock and Trade Regulation Section. Perkins The three found each other within & Roll Hall of Fame. Coie is a leading international law firm three weeks of arriving in Ann Arbor, with more than 600 attorneys serving and shortly thereafter formed the band States. After a day of performing for clients from 15 offices in the U.S. and Prozac Jack—and Rick’s Café would enthusiastic museum visitors, the bands China. You can reach Tom at trjohnson@ never be the same. But after graduation, faced off in front of a panel of celebrity perkinscoie.com. they returned to the corporate world. judges. Two years later, Osborn and Holderness The inspired evening competition, Charles Senteio, MBA ’94 received a call from Levisay. “We’re put- which raised money for the Hall’s Music worked for Booz Allen and Hamilton ting the band back together,” he said. Education Fund, culminated in Negative after graduation in its IT practice in Asia, The pretense was a job opportunity at a Feedback winning first place. The grand Mexico and the U.S. For the next six little auction company called eBay. Osborn prize is a display at the Rock & Roll Hall years he worked for Accenture as a sen- and Holderness left their jobs in the of Fame and Museum showcasing the ior manager in IT. During that time he Midwest to join their friend in Silicon band for a year. Said one event sponsor, worked with La Sima Foundation, Big Valley and work 80-hour weeks helping “What makes this all so special is that Brothers and Big Sisters of Dallas and the to build the soon-to-be Internet giant. these musicians all have day jobs; they Dallas Chamber of Commerce. Things Four years later, they formed Negative play music just for the love of it.” change, and in August 2004 Charles Feedback—a cheeky homage to their Osborn is senior director for global began EMT training. He plans to enter employer. They performed local gigs and marketing at PayPal, Levisay is director medical school in fall 2005. “I need to at eBay’s corporate events, and then sub- of consumer electronics for eBay and apply my skills, talent and passion mitted a demo CD to Fortune’s 2004 Holderness is an eBay alumnus who is now toward an area and individuals that will Battle of the Corporate Bands. Their president of Eleven East Management give me more personal fulfillment and entry earned them a coveted spot at the (http://11east.com/), which provides a satisfaction,” says Charles, who also regional qualifying competition in Los host of related management and financial keeps busy working out, studying Angeles, and Negative Feedback won a services…and also allows him to follow Shaolin Kung Fu, woodworking and trip to the finals. the band. Sometimes, childhood dreams working on his two 1965 Mustangs. To In October 2004, the band traveled to don’t fade away easily. learn more about this major career shift, Cleveland’s Rock & Roll Hall of Fame e-mail [email protected]. and Museum, joining seven other groups Fred Wessells from Europe, Australia and the United

DIVIDEND 49 SPRING 2005 CLASS NOTES

Ron Lieberman who obtained his joint They Started in IMAP JD-MBA in 1997. They have two boys, Eli and Isaac. You can reach Elizabeth at anuel Valencia, MBA ’99, [email protected]. and Chris Reid, MBA ’99, M did their International Steven Lizardi, MBA ’96 Multidisciplinary Action Project lives in England and serves as general (IMAP) in Mexico City and manager for Celetronix Europe. Geetika Toronto in telecommunications. Lizardi, MBA ’96, is pursuing a career as “In the second year we evaluated a screenwriter. Her script, titled JANE, is bandwidth exchanges during an a finalist in two prestigious screenwriting independent study project,” says contests. Steve and Geetika have two Reid. “One company we looked at children, Devin, 6, and Sofia, 4, and all was Arbinet,” added Valencia, “and are enjoying the UK. To learn how after graduation Chris and I got in Left to right, Michael Lemberg, Manuel Valencia and Geetika did in the contests or just to say touch with their founder and said Chris Reid work together at Arbinet. hi, e-mail [email protected]. we’d like to come and do a short- term project with them. We never left.” five years at Arbinet, I’m starting to get a Scott L. Goldberg, MBA ’97 Valencia is now director, Product handle on that,” he notes. “It’s fantastic has joined Bankers Life and Casualty Design and Management, and Reid is vice to work together, to have three business Company in Chicago as vice president president, Marketing. Mike Lemberg, school grads doing three completely differ- of Strategic Planning. He came to MBA ’99, went into consulting after ent things in a company,” adds Lemberg. Bankers from the Blue Cross and Blue graduation, decided he wanted to be Valencia sums it up: “The company Shield Association, where he was manag- more involved in a business and was was doing work in an area that was com- ing director of the Development Group. introduced to Arbinet by his classmates. pletely new and different. As such, there Previously he was with CAN, where he Today, he is vice president, Corporate was lots of ambiguity in the early days, served as assistant vice president for Development, and treasurer. and situations where you had to do strategic planning and business develop- Arbinet provides an electronic exchange things outside your job description. You ment. He also has held strategy manage- for trading, routing and settling commu- checked your ego at the door to manage ment positions at Lante Corporation and nications capacity. Members of the and direct situations that were new every Accenture, and began his career in audit- exchange, mostly communications serv- week. It was necessary to bring struc- ing and financial consulting at Arthur ice providers, anonymously buy and sell tured thinking and planning to the job, Andersen. He is a CPA. You can reach telecommunications traffic based on route and that’s where Michigan helped. Scott at [email protected]. quality, price and other parameters. In Making strong managers is its focus.” December 2004, Arbinet issued an IPO Arbinet CEO J. Curt Hockemeier says, Shannon D. Bryan, MBA ’98 for 6.5 million shares at $17.50 each, which “In the last five years, Arbinet invented a joined Procter & Gamble after gradua- was above its filing range. It closed its new business. Mike, Chris and Manny tion where he worked with Tide and Mr. opening day at $29 per share. helped define our vision for this service, Clean. He is now product manager at “Arbinet has been a continuation of helped build the business and then helped Frito Lay, working with Fritos. He serves the learning process I began at Michigan,” take Arbinet public. Today, all have impor- as the head/ says Reid. “I was interested in how to tant roles in this unique company.” team cap- start and grow a business and after almost Fred Wessells tain of National Black MBA Association Brian J. Conom, MBA ’99 most influential corporations,” says recruiting recently was promoted to senior national Rob. “I’ve been attracted to working and heads accounts director with Regent Medical in from within business because I think the Norcross, Georgia, with group purchas- that’s where the resources, power and Michigan ing and distribution responsibility for a influence, and the ability to make change recruiting wide range of services and products. are. If you can make small changes inside team for Frito Lay. Shannon, who served as Regent Medical is the world leader in a company like Ford, you can make a president of the Black Business Students powder-free surgical gloves. You can find really big impact.” You can reach Rob Association in 1997-98, is active in recruit- out more at [email protected]. at [email protected]. ing at the Ross School of Business, including interviewing candidates and mentoring James (Rob) Frederick, MBA ’00 Cecil Shepherd, MBA ’00 incoming students. He also has served on is corporate responsibility manager for worked for Lehman and others in sales the corporate advisory board for Paul Ford Motor Co., where he has been and trading and now is with Morgan Quinn College. You can reach Shannon employed since 1999. “I saw my MBA as Stanley as a fixed income specialist in at [email protected]. the source of an opportunity to create New York City. He is a volunteer week- change from within one of the country’s end painter for New York City Board of

DIVIDEND 50 SPRING 2005 CLASS NOTES they have a daughter, born on October 6, sively on education and leadership for 2003. You can reach Rachel at business innovation in the U.S. and Latin Education elementary schools, a volun- [email protected]. America. Meghan recently was in Buenos teer participant in the World Trade Aires working with a network of business Center Health Registry, has actively Leigh Goldstein, MBA ’01 school faculty from around Latin recruited Ross School of Business stu- took second place in the Jeff Skoll America. In Sao Paul, Brazil, she will be dents since graduation, is president of Community Award, developed by eBay launching a new initiative with entrepre- the NY Ross School of Business Alumni to recognize the extraordinary efforts of neurs, large companies and professors. Association, is director-at-large of the employees who raise the bar in helping Her hobbies include windsurfing, swing Alumni Association of the University of to create greater community involvement dancing, sailing, hiking and traveling Michigan, serves on the board of direc- with eBay. Leigh was the catalyst behind abroad. If you can catch her, it will be at tors of the U-M Alumni Club of NYC, the eBay/PayPal Online Postage product [email protected]. is a member of the Ross Admissions that rolled out in 2004. This program Alumni Committee and the Admissions was a massive undertaking that involved Kevin Fok, MBA ’02 Alumni Network, volunteers his time to coordinating USPS, UPS and Pitney- is leading marketing and business help students interested in careers on Bowes, as well as the eBay and PayPal development efforts as manager of mar- Wall Street and, not surprisingly, product teams. In the first six months, keting at Ovonic Fuel Cell Company in received the Business School’s 2003–04 more than eight million labels were printed Rochester Hills, Michigan. Kevin was a Alumni Service Award. You can reach through this system. Leigh currently is process development engineer at Ovonic Cecil at [email protected]. working on taking this development Battery Company, where he contributed across the globe, starting in Germany, to the development, fabrication and test- Rachel Fineberg Sylvan, MBA ’00 the UK, Canada and Australia. ing of positive electrodes for nickel-metal works for Creative Associates hydride batteries. He joined Ovonic Fuel International, a professional services firm Meghan Chapple, MBA ’02 Cell Company at its inception in 2000 that focuses on education, community who graduated from the Corporate and led several cross-functional teams development, democratic transformation Environmental Management Program, on a variety of missions. He spoke at the and civil society development. She is a is a senior associate at the World Michigan Growth Capital Symposium management associate in the office of the Resources Institute’s Sustainable held at the Ross School of Business president. Rachel married Stephen Enterprise Program. She works inten- in June 2004. You can reach Kevin at Fineberg Sylvan shortly after graduation; [email protected].

DIVIDEND 51 SPRING 2005 CLASS NOTES favorite pastime is hitting the eastern to wait for an occasion like a wedding to Sierras or the beach. You can reach Mark live life exuberantly, he started thinking Jason Sparks, BBA ’02 at [email protected]. about how to sustain this way of living has been with Weber Shandwick in on a daily basis. You can find out more Chicago since December 2003, working Scott Baron, MBA ’04 about the game, purchase it or find a in their consumer public relations prac- works for GE Wind Energy as a com- list of nationwide stores that carry it at tice. Jason has been actively involved mercial leader in Tehachapi, California. www.LivingLifeGame.com. To contact Jay, with Chicago alumni as a young alumni He is engaged to Theodora Kandalepas e-mail [email protected]. liaison. and plans on tying the knot on September 3. In Scott’s spare time, he Praveen Suthrum, MBA ’04 Eileen Gonthier, MBA ’03 likes to collect wine and play the cello played a key role in developing the who served on the Net Impact board in and soccer. You can find Scott at school’s Experimental Multidisciplinary 2002-03, works for Johnson & Johnson [email protected]. Action Project (XMAP), and in 2003 Consumer Products Companies as an adapted the eGovernance model as part assistant products director, Johnson’s Cynthia Casas, MBA ’04 of XMAP to aid reconstruction efforts in Baby Brand. She lives in the New Hope, worked closely with Professor C. K. Iraq. He also consulted with the U.S. Pennsylvania, area. You can reach her at Prahalad and classmates on Fortune at Institute of Peace on the feasibility of [email protected]. the Bottom of the Pyramid: Eradicating eGovernance in Iraq and is featured Poverty through Profits (Wharton Press, prominently in C. K. Prahalad’s new Javier Rodriguez, MBA ’03 2005) during her two years at the school. book The Fortune at the Bottom of the married Olga Ananina, MBA ’03, on She works in Washington, DC, as a self- Pyramid: Eradicating Poverty through April 17, 2003, and they relocated to employed consultant advising clients on Profits. He and his two partners, Bangalore, India. Javier is setting up business issues in economic development Ragavendra Baliga, MBA ’04, and new operations for the Equities Division such as microfinance. In her spare time Satish Malnaik, MBA ’04, have founded of Goldman Sachs. Olga resigned from she enjoys traveling, swimming, hiking NextServices, which provides physician Whirlpool Corp. and is helping the school’s and reading. You can reach Cynthia at practices and hospitals with customized India alumni community build recogni- [email protected]. practice management and administrative tion locally. She also is involved with solutions for managing their businesses. international recruiting efforts of Culver Jay Moore, MBA ’04 You can learn more about their efforts at Military Academy. They both spend their started and self-funded a business called www.nextservices.net, and can contact free weekends traveling around India. You Romherst Inc., which has launched a Praveen at [email protected]. can reach them at [email protected] product called The Living Life Game. and [email protected]. Designed to help you live life to the fullest, with 30 cards of “feel good” ✷✷✷ Mark Tholke, MBA ’03 adventures, players watch sunrises, con- a graduate of the Corporate Environ- tact old friends and test drive the car of E-mail your class note to Dividend mental Management Program, is a lead their dreams, among many other choices. [email protected] development associate at GE Wind Jay came up with the idea for Living Life Energy. Mark lives with his wife Freya shortly after September 11, 2001, when ✷✷✷ and their two-year-old daughter Iris in he was preparing for his marriage to Tehachapi, California. The family’s Jamie Eslinger. Wondering why he had

OBITUARIES was appointed to the faculty in the tee, founded Dividend magazine, hired the Department of Economics in 1938, first alumni relations director and launched where he taught until 1946. He married significant efforts to internationalize the Floyd A. Bond Jean Evelyn Marrow in 1939. From 1946 school and recruit African American stu- to 1948 he was an associate professor of dents. He authored and co-authored several BA ’38, MA ’40, PHD ’42, economics at Carlton College, later moving books and publications and held member- Dean Emeritus and Donald C. Cook to Pomona College in Claremont where he ships in many scholarly organizations. At Distinguished Professor Emeritus of was professor and department chairman various times he also served on the boards Economics, of economics. In 1959 he became director of eight corporations. Dean Bond lost his died in of business education for the Committee first wife, Jean, in 1982 and his second wife, Claremont, for Economic Development in New York. Dorothy, in February 2004. He is survived California, The University of Michigan Regents by his sons Richard and Robert and daugh- of natural appointed him business dean in 1960, a ter-in-law Vicki and three grandchildren, causes at position he held until 1979. He continued Laura, Jennifer and Jason. Memorial con- age 91 on to work as a faculty member until his tributions may be made to the Alzheimer’s December retirement in 1983. During his tenure, he Association, to a charity of one’s choice 24, 2004. built Assembly Hall and the Paton Account- or to the Ross School of Business. Dean Bond ing Center, organized the Visiting Commit-

DIVIDEND 52 SPRING 2005 OBITUARIES in the Army, mostly in Bremer-haven, ipated in the World Solar Challenge in Germany. He practiced law in McHenry Australia, where we placed 11th.” County, Illinois, from 1958 until his death, Despite more than two years of hardship James Bonner and was elected state’s attorney for the brought on by cancer, said his family, his MBA ’33 county in 1968, 1972 and 1976. He served humor remained boundless and his love a former CPA and resident of Royal Oak, as a director of the McHenry State Bank for those around him only grew and Michigan, for over 60 years, died on January from 1964 through 1997, and later as deepened. For this he will always be 24 at age 94. Born in Heron, Illinois, he chairman. He was an avid Michigan foot- remembered. moved to Detroit in 1922, graduated from ball fan and dedicated to his family. Bill is high school in 1928 and entered the Uni- survived by his wife of 44 years, Geraldine, versity of Michigan. After receiving his five children, six grandchildren, two step- Walter N. Johnson MBA, he worked as an auditor for Standard grandchildren and two brothers. He was BBA ’59, MBA ’60 Oil in Grand Rapids, Michigan, for four preceded in death by his parents and sister. passed away on December 13, 2004, in years and then moved to Ernst & Ernst in Geraldine Cowlin endowed the Gerald Lincoln, Michigan, after a short battle Detroit where he worked as an accountant and Ester Carey Professorship, currently with cancer. Walt came to the University until 1945. He then joined Cunningham held by James Walsh, in the late 1990s in of Michigan in 1955 from Dearborn Drugs in Detroit as corporate secretary honor of her parents. Donations in Bill’s High School, where he was a successful and treasurer until his retirement in 1978. memory may be made to the American quarterback. He shifted to the end posi- Mr. Bonner remained active in retirement, Lung Association. tion at Michigan, where he won three working at the Latin America Social varsity letters and was starting end in Economic Development (LA SED) in Dennis J. Eaton 1957 and 1958. He was a strong contrib- Detroit as a controller and financial advi- utor on offense and defense. Upon grad- sor for 20 years. He was an avid fan of MBA ’63 uation, Walt enjoyed a successful career University of Michigan teams and the a lifetime Dutchess County, New York, with Ford Motor Co. before retiring Detroit Tigers. He is survived by sons resident, passed away on August 7, 2004, to his beloved north country. Walt is James and John, five grandchildren and at age 63. He and his wife of 36 years, remembered by fellow football-business seven great grandchildren. Memorial con- Elaine Marcantonio, had two children, school friends Tom Berger, BBA ’58, tributions may be sent to LA SED, 4138 Todd Eaton MBA ’59, Dave Bowers, BBA ’58, MBA West Vernor Highway, Detroit, MI 48209. of Brooklyn ’59, Lynn Evans, BBA ’59, MBA ’59, and Kraig Dick Ketterman, BBA ’58, MBA ’59, and Eaton and Jim Van Pelt, BBA ’58, MBA ’60, as a Robert A. Cooch his wife gentleman, student, athlete, strong family MBA ’51 Katharine person and proud man of Michigan. He died on August 29, 2004 in Ann Arbor. of Phila- will be missed. Walt is survived by his Robert attended Pioneer High School in delphia. wife Sandy and three children. Ann Arbor, served in the U.S. Navy dur- Dennis ing WW II and received his BS degree worked for from Eastern Michigan University before 30 years for Joel Kahn coming to the University of Michigan. He IBM until taking early retirement. After PHD ’94 was employed by Ford Motor Co. and that, he established the Hudson River passed away on December 10, 2004. General Motors for a short time, then Valley Infomall, where he helped launch Joel received his PhD in organizational entered real estate sales in 1954 and opened the lucrative careers of many Hudson behavior and human resources manage- his own office in 1955. From 1957 to 2004 Valley entrepreneurs. His family said, ment and served as an adjunct assistant he devoted himself exclusively to real “Dennis’ family and friends will remem- professor in the Management Organiza- estate appraisals of residential, commercial ber him as a loving husband and father, a tions group. He will be remembered by and industrial properties. He held several passionate golfer and a friend to all the many students he touched through professional designations. He and his wife whose paths he crossed from the solar his teaching core and in his negotiations Jane, who survives him, traveled extensively, car team in Australia to Syracuse class—both areas in which he excelled. mainly in Europe. Memorial contributions University and the University of “He was highly respected by both may be made to the Humane Society of Michigan.” He was the IBM executive students and faculty, and he leaves Huron Valley or to the Ross School of assigned to the solar car projects in 1990 many friends here at the school,” Business. and 1993, and he helped with both fund- said Dean Robert J. Dolan. Expressions ing and technical expertise. His friend of condolence can be made with Nancy Nelson, formerly of the contributions to the University of William J. Cowlin University’s Development Office and Michigan Comprehensive Cancer BBA ’53 now a vice president at the College for Center, 1500 E. Medical Center Drive, Creative Studies in Detroit, said, “I got to Ann Arbor, MI 48109-0942. died on October 23, 2004, in Crystal Lake, know him when he traveled with the Illinois. After receiving his BBA, Bill earned 1993 team when Michigan won the U.S. his law degree from the University of Sunrayce and then again when we partic- Michigan in 1956 and then spent two years

DIVIDEND 53 SPRING 2005

NONPROFIT ORGANIZATION U.S. POSTAGE PAID ANN ARBOR, MI PERMIT NO. 144 701 Tappan Street Ann Arbor, Michigan 48109-1234

niversity of Michigan plans for the day-long conference Alumnus Bill Martin Athletic Director Bill and the school’s 2005 Reunion week- U Martin, MBA ’65, will give end, including class and all-school the keynote address at the Ross activities, at www.bus.umich.edu/ Will Speak at Annual School of Business Annual Reunion2005. Business Conference on October 7 Inside, a Dividend Q&A with Business Conference in Hale Auditorium. Check out Martin starts on page 22.

PETER SMITH