Fall 2005 Executive Education

Fall 2005 executive education

Strategic Human Resource Leadership

Explore the new HR Value Proposition with a who’s who of human resource thought leaders.

The Ross School of Business Redefining HR for the 21st century is pleased to announce the The human resource field is being split, as traditional transactional and administrative HR functions—payroll, benefits, return of David Ulrich from training, etc.—are being outsourced, reengineered and automated, leaving HR professionals with more strategic a three-year sabbatical. Dave responsibilities and roles. Recognizing this seismic shift, and informed by insights gained from the Ross School of Business was recently ranked #2 in Human Resource Competency Study with a global database of 30,000 HR professionals (the world’s largest), the Center the 2005 Excellence 100 for for Strategic Human Resource Leadership is actively defining the future of HR. HR leadership, excellence and consulting, and was Center faculty Wayne Brockbank and Dave Ulrich have developed a novel way of defining, assessing and expanding the role HR Value Proposition named the #1 management of HR in the 21st century organization. Their now guides the Center’s executive development programs educator and guru by and research agenda, presenting and exploring new ways to help HR professionals deliver value to both internal and external Business Week in 2001. He constituencies. Their work will help employees be more competent and committed, line managers accomplish their business resumed his faculty position strategies, customers buy more and investors gain confidence. as Professor of Business in July 2005 and also will PROGRAMS co-direct two executive education programs for the » Advanced Human Resource Executive Program Center for Strategic Human Michigan’s preeminent program for senior HR executives Resource Leadership. DATE: October 31–November 11, 2005 » FEE: $18,900

» Human Resource Executive Program Preparing HR managers to become strategic partners

DATES: December 5–16, 2005 | March 13–24, 2006 » FEE: $18,300

» Strategic Human Resource Planning Integrating your business challenges with HR strategies

DATES: October 10–14, 2005 | April 10–14, 2006 » FEE: $7,600

To learn more or to register, visit us at www.execed.bus.umich.edu or call our Customer Service Department at 734.763.1000. CONTENTS

FEATURES Tom Jones: Transforming BBA Education 16 Grateful Alumnus 24 1st Target Donates $10 Million Case Retired insurance executive Tom Competition Jones, BBA ’68, MBA ’71, says the success of his gift—the largest dona- Pitching business solutions to retail execution ever to an undergraduate busi- tives is the real deal for BBA seniors. ness program—will be measured by the impact it has on students’ lives. 32 Building a 20 “Our Brains Power-packed Were in Overdrive” Roster The world becomes a much bigger An inside look at the and a much smaller place for under- Ross School’s strategy graduates who view corporations to scout and attract top through a global lens. faculty talent. 36 Nanotechnology: Climate Change Small-tech World Bubbles with Business 26 The Debate Heats Up: Potential Scientists, entrepre- Jobs, Trade and neurs and venture National Security capitalists gathered this spring to talk Businesspeople join policymakers, environ- about business oppor- mentalists and scholars to reframe how we tunities emerging from view and talk about climate change. discoveries on a microscopic scale. Learn how scientific breakthroughs and 30 The Erb Family: business skills lead to market solutions. Shaping the Future $10 million gift supports global 29 New “Gas Mileage sustainable enterprise. Game” Fuels 31 Senator Proposes Rx for Understanding of America’s “Allergy” to Environmental Policy Students take on roles Global Warming Treaties of auto firms, govern- Carl Levin: “This is an economic issue, a ment and NGOs. values issue and an issue about our obligation to leave the Earth as we received it.”

DIVIDEND 1 FALL 2005 CONTENTS INTELLECTUAL 13 Quote Unquote CAPITAL Ross School of Business faculty 8 Business Can Foster members provide Dean: Robert J. Dolan expert commentary Director of Communications: Cynthia Shaw to media on every- and Profit from Executive Editor: Mary Jo Frank thing from breaking Sustainable Peace news to business Class Notes and Copy Editor: Fred P. Wessells Looking at the link trends. Read about who is saying Designer: U-M Marketing Communications between corruption, what—and where. Photographers: Grace Augustine, D. C. Goings, violence and a Joel Hill, David Kilkenney, Steve Kuzma, nation’s propensity 14 Alumni at Large Marcia L. Ledford, Ming Photography, for war. Melissa Pinard, Eric Neuman, Charles Accentuating Spiekerman, Martin Vloet and James Walsh the Positive Printer: University Lithoprinters A profile of John Vol. 36, No. 2: ©2005 Kim, BBA ’83, presi- Stephen M. Ross School of Business at the University of Michigan. dent of Prudential DEPARTMENTS This publication is produced twice a year by the Retirement. Office of Communications and made possible through the generosity of private donations. Banking on For more information, contact Dividend, 3 Across the Board Relationships Stephen M. Ross School of Business University of Michigan A short news A profile of J. Michael 701 Tappan, Ann Arbor, MI 48109-1234. Davis, MBA ’93, roundup, including ✷✷✷ an update on new president and CEO facilities…American of National City The University of Michigan Regents: Customer Satisfaction Bank of Michigan. David Brandon, Laurence B. Deitch, Olivia P. Index marks 10th Maynard, Rebecca McGowan, Andrea Fischer anniversary…faculty 43 Alumni Activities Newman, Andrew C. Richner, S. Martin Taylor, honored for research, teaching and Katherine White; Ex-Officio Member, Mary service…landmine survivor tells Club news from Sue Coleman, President, University of Michigan. his story to fellow grads…2005 Chicago, Germany, class gift sets record…adapting is India, Indonesia, The University of Michigan, as an equal key, says DaimlerChrysler’s Dieter Minnesota, New opportunity/affirmative action employer, com- Zetsche…Janet Weiss named grad- York, Singapore, plies with all applicable federal and state laws uate school dean…and more. Shanghai and regarding nondiscrimination and affirmative Southeast Michigan. action, including Title IX of the Education Amendments of 1972 and Section 504 of the Rehabilitation Act of 1973. The University 10 Faculty Research 45 Class Notes of Michigan is committed to a policy of non- The goings-on of friends, classmates discrimination and equal opportunity for all Mapping the and colleagues. persons regardless of race, sex, color, religion, creed, national origin or ancestry, age, marital Best Route to status, sexual orientation, disability or Vietnam- Technological 52 Obituaries era veteran status in employment, educational Breakthroughs programs and activities, and admissions. 56 Alumni Network Update Inquiries or complaints may be addressed to Gautam Ahuja the Senior Director for Institutional Equity shares strategies to and Title IX/ Section 504 Coordinator, Office fuel innovation, create technologi- Although Dividend strives for accuracy, for Institutional Equity, 2072 Administrative cal advantages and produce profits. we fell short in the Spring ’05 issue when Services Building, Ann Arbor, MI 48109-1432, we misspelled the name of the chair of 734-763-0235, TTY 734-647-1388. For other PLUS: News about how consumer the Alumni Society Board of Governors University of Michigan information call warnings can backfire and the and reported an incorrect graduation date 734-764-1817. effect of earnings surprises on for her in an article on page 15. We apol- Wall Street. ogize to all our readers, particularly to Stephen M. Ross School of Business Jacquelyn A. Levin, MBA ’87, president Web site: www.bus.umich.edu and CEO of AFB International.

DIVIDEND 2 FALL 2005 such as telecommunications and airlines, have struggled. The ACSI also predicts GDP growth Across the Board from consumer spending. The degree of satisfaction people get from shopping, buying and consuming tells us how they CONSTRUCTION For all students, it will be business as spend their money, more so than income, usual in the recently renovated Kresge wealth, credit, consumer confidence or Facility Plans Library. The Executive Residence dining any other economic variable, says Fornell, room will become the student lounge professor of business administration and Move Forward with expanded food service, and faculty of marketing. Over the years, the financial implica- eams of Ross School faculty, staff and program offices will move to former tions of customer satisfaction have and students worked closely with Executive Residence hotel rooms. T become much clearer. “Customer satis- architects this spring and summer on a In February, Regents approved the faction enhances repeat business,” says schematic design for new facilities to be Ross School’s $145 million proposal for Fornell. “It tends to lower employee presented to the Regents this fall. a new facility and the hiring of Kohn turnover and marketing costs, creates Upon final Regental approval of the Pedersen Fox Associates PC (KPF) of cross-selling opportunities and puts price project and completion of fundraising, New York as project architect. pressure on the competition.” what promises to be a hectic but exciting More than half the cost of the project Fornell dispels misconceptions about two years of construction on the west will be funded by $75 million of a $100 the causes of customer dissatisfaction side of the business school campus begins. million gift from Stephen M. Ross, and suggests ways managers can avoid The tentative timetable is to begin in BBA ’62, for facilities and endowment. common pitfalls. For example, he finds May 2006 to allow the early work to be Although University officials have said no evidence that rising customer expec- completed while students are away for financing a portion of the building is a tations are to blame for low or slipping the summer. possibility, the school has to raise at least satisfaction. Nor does he support the MBA classes will be held a block away $40 million more for facilities before notion that firms should always devote in Wyly Hall, which houses modern breaking ground. The new facility is additional classrooms originally designed for the part of the Ross School’s $350 million resources to the Executive MBA and Executive Education campaign, which started in 2000. So far, areas their cus- programs, during the construction period, $260 million has been raised. tomers say are says Graham Mercer, assistant dean for most important strategic planning and special projects. SATISFACTION to them. Rather, To make room for the MBA and PhD he advises man- programs, the Executive Education and ACSI Celebrates agers to concen- Executive MBA programs are relocating trate on places from Wyly Hall to 28,000 square feet of Milestone where improvements lead to the greatest new space in the Michigan Information ince it was introduced 10 years ago, marginal increase in customer satisfaction Technology Center (MITC) on South S the American Customer Satisfaction at the lowest cost. State Street. Built for high-tech confer- Index (ACSI) has gauged the quality of Mergers more often than not lead to ences and offices, MITC is within American products and services as seen deteriorating customer satisfaction, warns minutes of the campus. through consumers’ eyes and shed light Fornell, who cautions against relying on Circular staircase in Wyly Hall on how buyer satisfaction affects future price cutting and discounting to boost purchases and the performance of firms, satisfaction levels. Trying to exceed cus- industries and the overall economy. tomer expectations all the time comes at At the 10-year mark, Claes Fornell, the price of diminishing returns, he says. director of the National Quality Research Fornell also is concerned about the large Center and founder of ACSI, reflects trade deficit and the risk it poses. For on ACSI findings in a monograph titled some time now the United States has been The American Customer Satisfaction in danger of losing its longtime econom- Index at 10 Years, A Summary of ic advantage in the ability to borrow and Findings: Implications for the Economy, trade goods in dollars with foreign credi- Stock Returns and Management. tors bearing all the currency risk. Shifting Data confirm that companies with high demand from imports to domestic goods customer satisfaction are rewarded finan- and services is essential to reduce the gap cially by repeat business from buyers and and make the American economy less more capital from investors. Many of the dependent on the costs of production ACSI leaders—Google, eBay, Domino’s, and more focused on building strong Amazon, Dell and Hyundai—also have customer relationships, he concludes. been among the most financially success- To learn more about ACSI or to order ful. Companies in industries with high the monograph, visit www.theacsi.org/. levels of complaints and low ACSI scores,

DIVIDEND 3 FALL 2005 ACROSS THE BOARD

VALUES ing his most recent book, The Fortune at

the Bottom of the Pyramid: Eradicating D.C. GOINGS Action, Lights, Poverty through Profits, and his contributions to building and maintaining a Camera strong research environment at the Ross ayne Baker, author of America’s School. Prahalad also was honored in W Crisis of Values: Reality and July by the Regents, who named him a Perception, was featured on Book TV in Distinguished University Professor, the April and May. The program was taped highest honor the U-M bestows on its before a live audience on April 12 in faculty, for his originality, scholarly achievement, demonstrated teaching skills, Phelps Lounge at the Ross School and C. K. Prahalad aired multiple times on C-SPAN2. breadth of interest and achievements. Baker, professor of management and Other business school faculty honored environment. He was executive direc- organizations and director of the Center in April: tor of the William Davidson Institute for Positive Organizational Scholarship, James R. Hines Jr., professor of busi- from 1996 to 2004. began working on the book in 1996. It ness economics and research director Francine Lafontaine, professor and was published shortly after the 2004 of the Office of Tax Policy Research chair of business economics and pub- presidential election. Before and after the at the Ross School, was named lic policy and professor of economics, election, the media and politicians trum- Researcher of the Year at the school’s has been named the Jack D. Sparks peted the idea of the United States being annual faculty awards dinner. The Whirlpool Corporation Research a bitterly divided nation. Debunking award recognizes his substantial Professor. The professorship, estab- what he called a “pack of lies” to sell research contributions in the last three lished in honor of the former chair- newspapers, boost ratings and market calendar years and the significance of man, president and CEO of Whirlpool share, Baker said, “We are not divided. his scholarly publications. Corp., recognizes Lafontaine’s out- In fact, we are united when it comes to M. P. Narayanan, professor of finance, standing record of scholarship and important values and attitudes. received the Victor L. Bernard Teaching ongoing research program. Americans tend to have traditional val- Leadership Award. Established in Brian Talbot, the David B. Hermelin ues, though they want to express these 1994 in memory of Professor Victor Professor of Business Administration, values in their own ways.” Bernard, the award recognizes teaching, work with PhD students and col- professor of operations and manage- leagues, and course design. ment science and co-director of the Michelle Hanlon, assistant professor Erb Institute MBA/MS Program, of accounting, was named the Bank received the Andy Andrews One Corporation Assistant Professor Distinguished Faculty Service Award.

MARTIN VLOET of Business Administration. The one- The award was created in memory of year appointment recognizes and sup- Richard W. (Andy) Andrews, associ- ports promising non-tenured faculty. ate professor of statistics, who died on Sendil K. Ethiraj, a Hallman Fellow May 29, 2002. Talbot serves on the and assistant professor of corporate school’s Executive Committee. strategy and international business, was named the Sanford R. Robertson KUDOS Assistant Professor of Business Administration. The one-year named Wayne Baker Doctoral Grads professorship recognizes early career achievement and encourages out- Honored standing performance in teaching and he Ross School celebrated its 10 FACULTY research. Sanford Robertson, BBA newest PhDs and honored alumnus ’53, MBA ’54, is principal founder of T Harbir Singh, PhD ’84, at the school’s Recognized for Francisco Partners in Menlo Park, fifth annual Doctoral Recognition California. Research, Teaching Program and Distinguished PhD Alumni Jan Svejnar, the Everett E. Berg Award presentation in April. Professor of Business Administration, and Service In his keynote address, Singh, the professor of corporate strategy and Edward H. Bowman Professor of Manage- ight Ross School faculty members international business and professor ment at the Wharton School of the E were honored on April 6 for of business economics, received the University of Pennsylvania, encouraged research, teaching and service. Contribution to the Research the graduates to focus their scholarship Professor C. K. Prahalad received the Environment Award for his creative, on areas that will have the most impact. Senior Faculty Research Award for substantive and high-impact contribu- research in the field of business, includ- tions to the Ross School’s research

DIVIDEND 4 FALL 2005 ACROSS THE BOARD

“Make sound choices about where you Bone fragments from his right foot work. Seek to create more impact on had become projectiles peppering his STEVE KUZMA public policy,” he said. He also advised lower body. His left leg also was blown the future professors to maintain their open; bones jutted out of his calf. “I was relationships with teachers and advisers bleeding to death,” White told fellow and cultivate a “college of colleagues” as Ross School graduates during his April 29 a support network. commencement address in Crisler Arena. Jerry White Singh, co-director of the Mack Center White, executive director of Landmine for Technological Innovation at Survivors Network (LSN), was among Wharton, is a leading researcher on more than 1,100 graduates to receive 2001 to 2004, was presented the David D. strategic alliances and strategies for cor- degrees in the ceremony that also recog- Alger Alumni Achievement Award, porate renewal. He has consulted to and nized a distinguished alumnus, teaching which recognizes alumni whose profes- held executive workshops for Bell award winners and student leaders. sional successes have brought distinction Atlantic, IBM, Merck and AT&T. His White, who thanked his Executive to themselves, credit to the school and current research includes strategies for MBA classmates for making him a better benefit to fellow citizens. Weiser is corporate acquisitions, corporate gover- manager, described the man-made epi- founder, chairman and CEO of McKinley nance, joint ventures, management buy- demic that has become his obsession: Associates Inc., a national real estate outs and corporate restructuring. 80 million landmines buried in more investment company. The Doctoral Recognition Program, than 80 countries. Eighty percent of Five faculty were recognized by stu- established in 2000, honors all doctoral landmine victims are civilians, including dents for teaching excellence: candidates who will defend or have thousands of women and children. Every Gautam Ahuja, PhD ’96, a Hallman defended their dissertations this year. 22 minutes someone steps on a landmine. Fellow and chair and professor of White survived, thanks to two friends corporate strategy and international who carried him out of the unmarked business (MBA award) minefield that had been laid during the James M. DeSimpelare, lecturer of 1967 Arab-Israeli war. After spending six accounting (MAcc award) Sendil K. Ethiraj, a Hallman Fellow

MARTIN VLOET months in Israeli hospitals, White returned to and graduated from college. He worked and assistant professor of corporate for 10 years as a nonproliferation analyst, strategy and international business tracking the spread of nuclear, biological (PhD award) and chemical weapons for the Wisconsin Victoria Johnson, Fellow of Society of Project on Nuclear Arms Control before Scholars and visiting assistant profes- he and landmine survivor Ken Rutherford sor of management and organizations founded the LSN. The LSN is a leader in (BBA award) the International Campaign to Ban Thomas C. Kinnear, PhD ’72, the Eugene Applebaum Professor of Doctoral honorees, left to right, Christa Bouwman, Landmines, which won the 1997 Nobel Entrepreneurial Studies, professor of Seung-Yoon Rhee, Ravi Subramanian, Associate Peace Prize. marketing and director of the Samuel Dean Izak Duenyas, Chris Marquis, Sunil Mithas, “I didn’t set out to help landmine vic- Zell & Robert H. Lurie Institute for Xinxin Hu and Zheng (Jane) Zhao. Not pictured: tims,” White said. His passion to change Entrepreneurial Studies (Executive Amrita Nain, Wei (Vicki) Tang and Harris Wu. the world was sparked by a Cambodian girl, also an amputee. When she noticed MBA award) him adjusting his prosthesis and said in COMMENCEMENT Khmer “You are one of us,” White said CLASS OF 2005 Landmine Survivor he realized he could no longer distance himself from the suffering of amputees Gift Supports Shares His Story in Cambodia and other countries around the world. Facilities, Action- pril 12, 1984, was a gorgeous day in “Today, April 29, is the anniversary of A northern Israel when Jerry White, the day in 1970 that President Nixon based Learning 20 years old and a junior at Brown Uni- ordered an invasion of Cambodia,” said n annual gift-giving tradition versity, and two friends were returning White. Cambodians still live with the A launched 25 years ago reached a to Jerusalem from a backpacking trip and aftereffects. “All of us are connected to major milestone this spring as members the ground exploded under White’s feet. that Cambodian girl in Phnom Penh.” of the Ross School of Business Class of “I thought it was a terrorist attack. It White called on his fellow graduates to 2005 presented checks totaling a record was then that I learned what landmines use their managerial skills to help heal a $812,840 to Dean Robert J. Dolan, who do. They were invented to rip off body hurting planet. accepted the donations and pledges on parts—not to kill, but to maim. My right As part of the ceremony, Ronald N. behalf of the school. foot was blown off. I kept shouting: ‘I Weiser, BBA ’66, who served as U.S. Of the total, $280,240 was raised by have no foot! I have no foot!’” Ambassador to the Slovak Republic from graduates in the day and evening MBA,

DIVIDEND 5 FALL 2005 ACROSS THE BOARD jobs, and Masters Tournament sponsors would withdraw support for the nation’s MAcc—Sarah Ettinger and Adam premier golf event. Tymowski The talk was sponsored by University Executive MBA—Anna Bousouris, Housing, Division of Student Affairs and Ken Davis, Mitch Henderson, John the Ross School. Kennedy and Amy Rhine-Pallas SURVIVAL FORE! PHOTOS BY STEVE KUZMA Automotive Exec: Author’s Goal: Make Adapting Is Key Gender Bias Gauche lthough developing countries such he hardest and most bitter lesson A as China and India are important to T Martha Burk says she has learned as the future of auto companies, the firms’ chair of the National Council of Women’s relationships with the developed world Organizations (NCWO) is that leaders in remain vital, Dieter Zetsche, head of the corporate America who engage in sex Mercedes Car Group of DaimlerChrysler discrimination do so without fear of AG, told a Ross School audience this spring. reprisal from consumers or employees. Zetsche, who ran the Chrysler Group Speaking at the Ross School in March, from 2000 until September 1, shared les- Burk, the author of Cult of Power: Sex sons learned during his 28 years in the Discrimination in Corporate America and auto industry and from the merger of What Can Be Done About It, said, “I’m Daimler-Benz and Chrysler Corp. here to talk about dishonesty in corpo- “Despite many political differences, the TOP Left to right, Nancy Stano, Adam Nielsen, rate America, dishonesty that affects us ties between Europe and America are as Ben Johnston, Danielle Tomassini, Sarah Ettinger, all, dishonesty that has to end.” important and as tightly woven as ever Adam Tymowski and Dean Robert J. Dolan The NCWO is a network of nearly 200 before —especially the economic ties,” he BOTTOM Left to right, Dean Robert J. Dolan, national women’s groups that collectively said. Global competitiveness is increasing Executive MBA graduates Ken Davis, Anna represent 10 million women. Burk each year with more nameplates and Bousouris, Mitch Henderson, Amy Rhine-Pallas, explained how a brief letter from the models in the market. This may lead John Kennedy and Professor Susan Ashford, NCWO in 2002 to the Augusta National some to think “only the strong survive,” academic director of the Executive MBA Program Golf Club—host of the prestigious Zetsche said, paraphrasing Darwin. But Masters Tournament—expressing concern Zetsche reminded the audience that MAcc and BBA programs and is ear- over its all-male membership sparked a Darwin also said those who are “most marked for the facilities fund. The national argument regarding the club’s responsive to change” survive. remainder was donated by Executive then-secret roster of high-ranking corpo- “Adapting to compete in the new order MBAs. Speaking on behalf of his class- rate executives. is the key to survival,” he said. The 1998 mates, John Kennedy, president of Burk includes in her book the Augusta merger of Daimler-Benz and Chrysler Autocam Corp. in Kentwood, Michigan, National Golf Club 2002–2004 membership was necessary for the survival of both and Hayward, California, noted that all roster that was faxed to her anonymously companies. It didn’t immediately solve 56 members of the Executive MBA class after she sent the letter to the golf club. The problems but “created an opportunity for contributed to its $532,600 gift. “We’re a list includes America’s rich and powerful. us to blend our organizations, expertise small class, but we’re going to do great Fourteen are members of the Council on and technology know-how in the search things,” Kennedy predicted. The gift will Foreign Relations, Burk said. for solutions to survive in this hyper- endow Executive Multidisciplinary If the Augusta National Golf Club competitive global market,” Zetsche said. Action Projects and provide additional practiced racial rather than sex discrim- Executives at the new DaimlerChrysler resources for alumni programming. ination, learned many lessons, he said, including: Graduates presented their gifts and Burk said, Success or failure may be less about the pledges at an April 29 celebration under America’s business model you choose and more the portico prior to commencement. business, about how well you execute your model. “We can’t tell you how much your gifts government, In a global merger, protect your brands mean to the school,” said Dolan. “We philanthropic and integrate your operations. Merg- appreciate the nature of the investment and media ing two companies but then running you’re making.” leaders who them as separate entities doesn’t make Class Gift Campaign leaders were: belong to the sense. “That’s not a marriage, that’s BBA—Damian Kim and Nancy Stano club would just roommates,” he said with a smile. MBA—Adam Nielsen and Ben be forced by The merger didn’t mean the company Johnston public pres- was going to put a Mercedes badge on Evening MBA—Danielle Tomassini Martha Burk sure to resign a Chrysler or vice versa. However, or lose their

DIVIDEND 6 FALL 2005 ACROSS THE BOARD PROMOTION

some operations were transparent and eign language, even if it’s just the Janet Weiss could be integrated and streamlined. basics, can go a long way in the busi- The company’s Procurement and ness world, he said. Named Graduate Supply group, separated into three His talk was sponsored by the William divisions and run by one executive, is Davidson Institute and the University’s School Dean an example of the new state-of-the-art European Union Center. anet A. Weiss, the Mary C. Bromage processes created by the merger. J Collegiate Professor of Organizational When it comes to merging companies, LEADERS & BEST Behavior and Public Policy at the Ross it’s all about business. Merging the School, became dean of the University’s American and German operations was School Recognizes Horace H. Rackham School of Graduate not difficult; merging the corporate Studies and Vice Provost for Academic cultures was. Both companies had Outstanding Alumni Affairs-Graduate Studies on August 1. their strengths and had to learn from Weiss, who joined the business school esa Chittenden Lim, MBA ’86, of each other. Chrysler had to adopt the faculty in 1983, served as associate Gulph Mills, Pennsylvania, and discipline of Mercedes without losing L provost for academic affairs from 2002 Edward “Ted” Michael, BBA ’67, MBA its creative spirit. The automaker called until her promotion. As associate ’68, of Vero Beach, Florida, are the 2005 the concept “disciplined pizzazz,” a provost, she was responsible for faculty recipients of the Charles H. Ihling term that has “stuck with our employees promotion and tenure, family friendly Memorial Service Award, which recog- and made us a better company.” policies affecting faculty and students, nizes retiring and former board members Never take your eye off your core facilities planning and strategic planning. business. “When you’re competing for extraordinary service. The awards are Weiss founded and directed the against global competition, taking to be presented at the Alumni Society University’s Nonprofit and Public your eye off the ball, even for a Board of Governors’ October meeting. Management Center from 1998 to 2002. moment, can cost you big,” Zetsche Chittenden Lim, president of the man- She was associate dean of the business said. Also, in a globally competitive agement consulting firm LMCL and a pro- school from 1992 to 1997 market a company can’t be satisfied fessional artist, is being recognized for and before that served as to simply work in its home market her outstanding contributions as chair of associate director of “while the competition brings the the Alumni Society Board of Governors. Michigan’s Institute of fight to you. You have to take the She completed her term as chair in fall Public Policy Studies, the fight to the competition. You can 2004. She served as an engagement man- forerunner to the Ford only do that successfully if you first ager at McKinsey & Company, director School. She also taught at get the product right.” of strategic planning at FMC and vice Yale University. Although the business world is more president and general manager of the Weiss received a PhD competitive than ever, there’s also a $500 million specialty chemical division from Harvard University new world of opportunity for those at Allied Signal before starting LMCL. in psychology and social who are prepared, willing and eager to Michael is being recognized for his relations and a BA from long-term commitment to the school and take advantage of it. Zetsche said global Yale University. Her Janet A. Weiss companies need talented people with his service as chair of the Alumni Board research focuses on public a good edu- Membership Committee. He served as management and public cation, expe- CEO of Diamond Brands Inc. from 1989 policy, including the roles of information rience or until his retirement in 1998. Previously, and ideas in the policy process, the chal- demonstrat- he had served as the Diamond Brands’ lenges of public management, and the ed ability, chief financial officer, as vice president interplay between policy design and the and the atti- for finance for the Bekins Co. and as an management of public programs. tude to suc- audit manager for Arthur Andersen LLP. As dean, Weiss will work with the ceed. A Other 2005 alumni award recipients: deans of the University’s other 18 schools bachelor’s Former U.S. Ambassador to the and colleges to improve the quality of degree is Slovak Republic Ronald N. Weiser, graduate education and to create condi- required in BBA’66, of Ann Arbor, founder of tions that allow graduate students to do Dieter Zetsche the global McKinley Associates Inc., received the their best work. As vice provost, she will business David D. Alger Alumni Achievement advocate for policies, funding and initia- world and a master’s degree is pre- Award at commencement in April. tives that support graduate and profes- ferred. “People need to have knowl- Thomas C. Jones, BBA ’68, MBA ’71, sional education. edge in other fields.” For instance, of Ann Arbor, who retired as presi- engineers should know something dent of CIGNA’s Retirement & about finance, and economics majors Investment Services Division in 2002, should know about marketing. received the Bert F. Wertman Alumni Studying abroad also is favored by Service Award at the school’s annual global companies, and speaking a for- Scholarship Recognition Dinner in March. See page 16.

DIVIDEND 7 FALL 2005 INTELLECTUAL CAPITAL Business Can Foster and Profit from Sustainable Peace BY CINDY A. SCHIPANI

Schipani is a professor of business law and chair of the Law, History and Cindy A. Schipani Communication area at the Stephen M. Ross School of Business. Her research focuses on corporate governance with an emphasis on social responsibility and national companies to adopt practices fiduciary obligations. In 2004, Cambridge University Press published The Role that would promote peaceful societies. of Business in Fostering Peaceful Societies, which Schipani co-authored with The symposium was sponsored by the Timothy L. Fort, who was an associate professor of business ethics and busi- William Davidson Institute, the Aspen ness law at the Ross School and is now the Lindner-Gambal Professor of Institute and Erika O. Parker, in memory of her late husband, Edwin C. Parker Sr., Business Ethics at George Washington University. The book introduces a novel BBA ’54 and MBA ’55. area of scholarship that examines the underlying factors linking international What if a case could be made that foster- business activity, organizational behavior and harmonious societies. ing peace is an effective business strategy?

eace is good for business—where Factors Related to War there is peace there is more stability, Let’s start with economic, political and P less poverty and fewer obstacles to societal factors that can be linked to a economic expansion. And there is com- nation’s propensity for war or peace. Then pelling evidence business can foster peace let’s look at how corporations influence by promoting and adopting certain atti- these factors. tudes, activities and values that correlate The non-governmen- with peaceful societies. These include par- CORRUPTION: tal organization Transparency International ticipatory governance, operational trans- (TI) evaluates the level of corruption in parency, a sense of community, equity nations based on bribes paid to interna- for women in the workplace, opposition tional corporations and other factors. The to corruption and sensitive management Heidelberg Institute for International of environmental issues. Conflict Research produces an index This idea that companies can lay the gauging conflict around the world. Between foundation for peace—and that it is in 1975 and 2000, countries with the least their best interest to do so—may seem corruption were the least likely to resolve naive given that globalization continues conflicts violently. In these “least likely” to spawn intense suspicion and violent nations, only 14 percent of their conflicts protests. The 9-11 attacks are a painful escalated to violence or warfare. Mean- reminder of the brutal era we live in. while, the most corrupt nations resorted Meanwhile, companies are accountable to violence or war in 60 percent of their for delivering consistent profits, often conflicts. This does not prove corruption not for the betterment of society. causes violence, but it does show they are When this issue was introduced at linked: Corporations that engage in or the Ross School symposium “Corporate tolerate corruption are operating in an Governance, Stakeholder Accountability environment prone to bloodshed and and Sustainable Peace” in November societal instability. 2001, corporate leaders who participated said fostering peace is the role of govern- ECONOMIC DEVELOPMENT: Just as there is a correlation between cor- ment, not business. At the same time, ruption and violence, “there is a highly representatives from government and positive correlation between under- non-governmental organizations said development and armed conflict,” wrote they are powerless to compel multi-

DIVIDEND 8 FALL 2005 INTELLECTUAL CAPITAL More than 90 percent of post-Cold War conflicts have occurred within the J. Lewis Rasmussen, former program The Role of Business borders of existing nation-states. These officer at the United States Institute of in Promoting Peace battles have been fought on the basis of Peace, in Peacemaking in International Corporations can justify making sustain- ethnic, cultural and religious identity, Conflict: Methods & Techniques. A 1999 able peace a business objective because according to the 1998 report “Sustainable World Bank report reinforces this. It peace fosters economic enterprises. Peace Peace: The Role of the U.N. and Regional showed a strong correlation between underpins stability, and stability drives Organizations in Preventing Conflict.” under-development and violence. Critics profitability. Given that, how can multi- When a group feels its security and iden- of globalization downplay the advantages national corporations have an impact on tity are threatened, extremism can take corporations bring with them to a country. the factors that influence peace? hold and violence can erupt. For businesses, I believe it can be argued that a lack of The first way for companies to work this reinforces the need to nourish a sense economic opportunity exacerbates poverty for peace is to do what they do best: of community by creating a connection and that poverty contributes to the foster economic development. When among people within an organization propensity for warfare. When basic needs companies build for the long term, they and providing a sense of security and such as food, clean water, shelter, security, can improve the local standard of living, identity to those who work there. health and literacy are unmet, violent alleviate poverty, contribute tax revenues The causes of war are multifaceted, of conflict often results. and convey skills and technological course, and no single business or set of Historians DEMOCRATIC VALUES: know-how to the local people. businesses can eliminate them. On the Spencer Weart and Dean Baps have Companies also can ease tensions other hand, corporations can help miti- shown that well-established democracies between nations by serving as an unofficial gate the factors that threaten peace and have never made war against one another. channel of communication between govern- stability. The evidence suggests that stan- Three reasons have been offered to ments. Due to diplomatic protocol, gov- dard ethical business practices may explain this phenomenon: ernment leaders generally talk with other reduce bloodshed while unleashing Democratic republics are pluralistic, government leaders, limiting the flexi- entrepreneurial opportunities that can so no single group’s outrage is likely bility of negotiations between countries change the world for the better. to trigger violent outbursts. engaged in a dispute. On the other hand, Democracies generally behave more “track two” diplomacy allows a third peacefully toward other nations than party to relay unofficial messages to gov- autocracies do. CORRUPTION ernmental officials. The New York Times Democratic leaders are accustomed AND CONFLICT columnist Thomas Friedman reported to compromise, a leadership style that that the 2002 nuclear showdown between Countries with the highest rankings in Trans- tends to extend to international relation- India and Pakistan was mitigated, at least parency International’s “Corruption Perception” ships and disputes. in part, by business executives who con- ranking and the Heidelberg Institute’s index A comparison of GENDER EQUITY: vinced the Indian government of the need gauging propensity to resolve conflicts peace- the Heidelberg Institute’s index gauging for a peaceful resolution. fully in 2000: the propensity of nations for violent con- Another type of track two diplomacy flict with the United Nations’ Gender 1 Finland casts businesses as unofficial ambassadors Development Index shows a correlation for their countries and constructive citizens 2 Denmark between countries that resolve conflicts advocating values such as environmental 3 New Zealand peacefully and those that support the responsibility, respect for human rights and economic empowerment of women. 3 Sweden education for employees. A third type Similarly, nations that rank as more vio- 5 Canada occurs in the workplace when corporations lent have greater gender inequity. It also 6 Iceland bring together people of diverse ethnic back- has been shown that involving women in grounds to work toward a common goal. 6 Norway the economy as wage earners improves Companies also can foster peace by 6 Singapore productivity and reduces overall poverty. modeling democratic principles so those This, in turn, promotes stability and fos- 9 Netherlands values spill over into society. For example, ters more peaceful societies. 10 United Kingdom corporations that operate with transparency ENVIRONMENTAL PRESSURES: may contribute to a social environment 14 United States Ecological issues are directly linked to in which violence is less likely to occur. warfare in various ways. And the countries with the lowest rankings: Transparency undermines corruption, The scarcity of natural resources has which requires secrecy to thrive, and bol- fueled violent competitions throughout 81 Mozambique sters the rule of law, which is necessary history and continues to do so today. 82 Kenya for a successful free market. Economist Ecological degradation can exacerbate 82 Russia Jane Jacobs has argued that countries with regional tensions. strong commercial values—including 84 Cameroon Increasing population and industrial- promise-keeping in contracts, respect for 85 Angola ization can adversely affect ecological property and nonviolent, negotiated res- stability and cause conflicts. 85 Indonesia olution of disputes—tend to be more 87 Azerbaijan peaceful. 87 Ukraine 89 Yugoslavia 90 Nigeria DIVIDEND 9 FALL 2005 FACULTY RESEARCH Mapping the Best Route toTechnological Breakthroughs

There are various ways for firms to obtain technological capabilities that fuel innovation and invention—including acquisition, collaboration and internal development. Gautam Ahuja, professor and chair of corporate strategy and international business at the Stephen M. Ross School of Business, sheds light on strategies that drive innovation, create technological advantages, produce profits—and perhaps open the door to insider trading.

reakthrough inventions perma- 1980 to 1995, Ahuja found evidence that

nently alter the technological land- three common organizational tendencies MARCIA LEDFORD B scape, ignite entrepreneurship impede the creation of breakthrough and provide companies with potentially inventions—favoring the familiar over inimitable competitive advantages. Unfor- the unfamiliar, preferring the mature Professor Ahuja, PhD ’96, was selected tunately, the research and development over the new and searching for solutions by MBA students to receive the Teaching strategies that help established firms similar to existing approaches rather Excellence Award in 2005 and achieved the succeed also may inhibit their ability to than adopting novel ideas. unusual distinction of winning two teaching produce fundamentally groundbreaking “We call these three pathologies the awards in one year, from both doctoral innovations. familiarity trap, the maturity trap and and MBA students, in 2004. He also was Gautam Ahuja, a Hallman Faculty the propinquity trap,” Ahuja and his co- selected as Best Professor in the MBA Fellow at Michigan, examined how author wrote. “Each of these is grounded program at the University of Texas-Austin companies create breakthrough inven- in significant immediate benefits for in 1997, 1999, 2000 and 2001 and at tions in a study published in Strategic firms, but eventually constrains their Michigan in 2003. Management Journal in June 2001. ability to create breakthrough inventions Through an analysis of patenting activity that hold the key to future performance.” His research has received several interna- in the global chemicals industry from Experimenting with novel, emerging tional awards including the Free Press Award for outstanding research in strategy, the Sage-Pondy and West Publishing awards for organization theory and the Best Dissertation Award from the Institute for Operations Research and the Management Sciences.

and pioneering technologies can help companies overcome these traps and produce significant innovations, Ahuja says. This approach gives an organization an understanding of a wider array of technological options, a larger problem- solving arsenal and new paradigms and insights—while increasing its risks and costs. “Having resources available to take these chances,” Ahuja says, “is a key determinant in the creation of breakthroughs.”

DIVIDEND 10 FALL 2005 FACULTY RESEARCH Warnings About Shopping for a edge and expertise—not too much False Claims May Technological Advantage and not too little. The ability to integrate knowledge bases is optimized, Firms often try to secure a technologi- Backfire with Older the study says, when there are com- cal advantage by acquiring assets from mon skills, shared language and simi- another company, rather than through Consumers lar cognitive structures that facilitate internal research and development. This technical communication and execu- approach, however, is not always a recipe elling people, tion. When the knowledge is dis- for success. especially older parate, on the other hand, it can be Ahuja and a colleague evaluated nearly T adults, that a difficult to assimilate and exploit. 300 technological acquisitions—defined consumer claim is as corporate acquisitions in which tech- false can make them nology was part of the acquired firm’s Foresight Fuels mistakenly remember assets—from 1980 to 1991. The success of Insider Trading it as true. an acquisition, they found, was influenced What happens when managers A study featured by the size of the body of knowledge that recognize that their firm’s technological in the Journal of was acquired, the relative size of the two capabilities have generated an imminent Consumer Research Carolyn Yoon firms and the overlap in the companies’ breakthrough that promises to generate raises concerns that areas of technical expertise. The study, profits and boost the company’s value? attempts to correct published in an earlier issue of Strategic Often, they buy shares of the company’s false and questionable Management Journal, concluded: stock (presumably to profit from this claims about con- The larger the acquired base of knowl- knowledge), conclude Ahuja and col- sumer products actu- edge, the greater the resulting “inno- leagues from Emory University in a ally may lead to nega- vative output.” Ahuja suggests this paper forthcoming in Strategic Manage- tive consequences for may occur because a larger research ment Journal. older adults. base produces increased economies of What’s less clear, Ahuja says, is Carolyn Yoon, assistant professor scale, decreased duplication of effort, whether this insider trading is deleterious Norbert Schwarz invention spawned by combinations to common shareholders. of marketing, and of the two firms’ newly integrated The study, which examined patent Norbert Schwarz, knowledge and an enhanced ability to activity and insider trading data from professor of marketing and of psycholo- tap into external knowledge. 1,269 publicly traded companies, found gy, and colleagues from the University of The closer the two companies are in that insider stock purchases increase in Toronto and the University of Illinois size, the less innovation will result relation to: found that the more often older adults from their merger. Mergers of near The number of patents the company were told a given claim was false, the equals produce weaker results, Ahuja has applied for. This suggests man- more likely they were to incorrectly says, because they are likely to gener- agers view extensive patent activity as remember it as true after several days ate more ambiguity about corporate a sign their firm is well positioned to had passed—especially when the warn- roles. In addition, a greater proportion benefit under a variety of potential ing pertained to a claim with which they of the merged companies will be market conditions. were already familiar. affected by corporate turbulence; and The number of citations the firm’s top The researchers tested how age and a smaller proportion will avoid dis- patent receives in later patents, which time delay interact with repetition to ruption and remain focused on the measures its potential as a platform lead to a greater likelihood of misremem- core business. for subsequent innovation and a trail- bering false statements as true. They Technological acquisitions work best blazer with significant profit potential. exposed 32 younger adults, ages 18-25, when there is a moderate amount of The number of claims made in a and 32 older adults, ages 71-86, one time overlap between the two firms’ knowl- patent application regarding the or three times to claims that were explic- potential innovativeness of the patent. itly labeled either false or true. After three days, older adults misre- ✷✷✷ This signifies its potential as a technological breakthrough. membered 28 percent of false statements Ahuja found evidence that three as true when they were told only once The bottom line is that managers have that the statement was false. However, common organizational tenden- foresight about technological break- they misremembered 40 percent of the cies impede the creation of throughs, which represents knowledge false statements as true when they were unavailable to the market at large, and told three times that the statement was breakthrough inventions: “We they trade on that information before false. call these three pathologies the patent applications are filed. Additional This tendency to misremember false research is needed, Ahuja says, to deter- claims as true—the “illusion of truth” familiarity trap, the maturity mine the degree to which this hurts other effect—could put the older generation at considerable risk for consumer fraud and trap and the propinquity trap.” shareholders. Dave Wilkins advertising scams, the researchers say.

DIVIDEND 11 FALL 2005 FACULTY RESEARCH earnings label, a company must beat the consensus-forecasted quarterly earnings per “Suppose an advertising campaign share by about one-half percent of the price promises that taking a certain herbal Earnings Surprises per share at the end of the fiscal quarter. supplement reduces people’s arthritis The study found that after controlling pain,” says Yoon. “When there is no evi- Catch Wall Street for risk and other market-related effects, dence for such beneficial effects, a typical Analysts Off Guard the estimated return associated with a warning would tell consumers, ‘It is not positive earnings surprise is about 10 true that taking the supplement will ompanies that percent after one year, 16 percent after reduce your arthritis pain.’ This type of report large two years and nearly 20 percent three warning repeats the claim’s link between C positive earn- years later. Beyond this time, there is the supplement and reduced arthritis ings surprises continue little additional return. pain in order to add the new information to outperform the A hedge portfolio that takes a long that the claim is false. market and beat ana- position in the top decile of earnings sur- “Unfortunately, this repetition has an lysts’ expectations up prises and a short position in the bottom unintended consequence—it makes the to three years later, decile returns 14 percent in the year fol- claim seem more familiar when con- according to research lowing the earnings announcement, 20 sumers hear it again. Once their memory by Russell Lundholm, Russell Lundholm percent two years later and 24 percent for the details of the warning fades, all professor of accounting. after three years. that may be left is an increased feeling of In contrast, firms that disappoint Wall Holding a long position in the portfolio familiarity when consumers later see the Street by delivering extremely bad news of firms with the largest positive earnings misleading claim in an advertisement.” perform poorly afterward, producing surprises proved to be a good investment Familiar statements are more likely to negative stock returns over the subsequent strategy, generating two-thirds of the be accepted as true than unfamiliar ones, three-year period. hedge return, according to Lundholm. the researchers say. Hence, repeated “Firms that report a large positive earn- Exactly why the market seems “asleep warnings can backfire: The more often ings surprise do much better than expect- at the switch” and takes up to three years consumers are told a product claim is ed in the future, and firms that report a to correct the earnings-surprise pricing is false, the more likely they are later on to large negative earnings surprise do some- somewhat perplexing, he says. accept it as true. This is particularly likely what worse than expected,” Lundholm says. However, Lundholm says this may for older adults. “In subsequent years, firms with happen because firms in the extreme “Detailed memory for the warning extremely good news tend to have per- earnings surprise portfolios are classic fades more quickly for older adults than sistent earnings surprises in the same “neglected stocks.” These companies are it does for younger adults,” Yoon says. direction, strong growth in cash flows generally smaller, with higher book-to- “Once the contextual details about the and earnings, and large increases in ana- market ratios and less analyst coverage claim’s validity are lost, the remaining lyst coverage relative to firms with than firms in the other surprise portfolios. feeling of familiarity fosters the accept- extreme negative earnings surprises.” “It appears extreme positive earnings ance of false claims as true, rendering Lundholm and colleagues from the news is less transitory than the market older adults particularly susceptible to University of Utah and Stanford University anticipates, and as firms with large posi- this bias.” examined 159,789 firm-quarters between tive surprises continue to outperform In essence, it appears people become 1988 and 2000 and reported average future financially, they attract more analyst increasingly susceptible to the illusion of returns for each of 10 portfolios of earnings attention, which eventually eliminates truth as they age because they experience surprises, ranked from the top 10 percent their under-pricing,” Lundholm says. declines in memory for the context or of firms with the largest positive earnings Contact Lundholm at source of information, but not for famil- surprises down to the bottom decile. [email protected]. iarity with it, the researchers say. To qualify for the “extreme” positive This has important public policy implications for protecting elderly consumers. “Whenever possible, education TWO-YEAR RISK-ADJUSTED STOCK RETURN ON HEDGE campaigns should focus on what is true PORTFOLIO FOLLOWING EXTREME EARNINGS SURPRISES and avoid reiterating what is false,” 0.40 Schwarz says. “In addition, it may be useful to provide people, particularly 0.35 older adults, with written materials or 0.30 visual imagery to supplement or improve 0.25 memory.” Contact Schwarz at 0.20 [email protected] and 0.15

Yoon at [email protected]. risk-adjusted stock return 0.10 0.05 0.00 ’88’89’90’91’92’93’94’95’96’97’98’99 quarters

DIVIDEND 12 FALL 2005 QUOTE UNQUOTE f you recognize salt because you saw “I it on a billboard 20 times, you might say, ‘Oh, I saw that on a billboard,’ and Though our study does not establish that you can discount it. But if you can’t remem- “wage differentials among male and female IT ber why it looks familiar or don’t even professionals are on account of systematic gender think about why it looks more familiar, you discrimination by employers, persistent gaps in just think, ‘I must like that more.’ It’s easier for you to see because you’ve seen it before. salaries attributable to gender should serve as a Incidental advertising is an incredibly wake-up call for understanding the determinants powerful tool in advertisers’ toolkits.” of the salary gulf between males and females. Christie L. Nordhielm, associate clinical professor of marketing, discussing the efficacy of ads M. S. Krishnan, a Hallman Fellow and chair and professor of business ” designed to keep consumers from recognizing information technology, talking about his 1999–2002 study of 55,000 they are being exposed to advertising, such as high-tech workers in the United States that showed women earned 7.8 passing buses, grocery store floors and the percent less than men with similar jobs, education and work experience. back of receipts. —The Economic Times, June 6, 2005 —Chicago Tribune, March 15, 2005

ou don’t shift $200 million of vasion is a big problem because it “Yprecious metals off your invento- “E undermines the fairness of the tax ost mergers leave customers ry and then buy it back. You just don’t. I system, and it makes some people who “M less satisfied, and as a result, at hate to say it, but this is bad.” voluntarily comply feel like suckers.” least in some measures, shareholders lose as well. There has been tremendous loss Eugene Imhoff, the Ernst & Young Professor of Joel Slemrod, the Paul McCracken Collegiate in shareholder wealth for the last merger Accounting and director of the Paton Accounting Professor of Business Economics and Public activity of any note between 1995 and Center, commenting on accounting irregularities Policy, responding to an Internal Revenue Service 2000. I’ve seen estimates of up to a tril- discovered at Delphi, the world’s largest auto study that suggests tax cheating is on the rise. lion dollars lost. And a good deal of this supplier, which sold and recorded as sales —The Wall Street Journal, March 30, 2005 is probably due to the fact that some- inventories of precious metals used in auto thing is going on with the customer base. parts with the understanding that the assets We find, looking at our data, that high would be repurchased later. he more compassionately they are levels of customer satisfaction and share- —The New York Times, March 12, 2005 “T treated, the more committed they holder value go together.” are, the more they intend to stay and the less stress they feel.” Claes Fornell, the Donald C. Cook Professor of ompanies are looking for ways in Business Administration, professor of marketing Jane Dutton, the William Russell Kelly which they can compete that are and director of the National Quality Research “C Professor of Business Administration, professor better than before. It’s not about the Center, elaborating on the effect of corporate of management and organizations and profes- product or service; it’s the customer’s mergers on customer satisfaction and share- sor of psychology, talking about how compas- experience that matters.” holder wealth. sion and understanding for an employee who is —Talk of the Nation, National Public Radio, Venkatram Ramaswamy, professor of marketing grieving can help the person heal and become February 9, 2005 and of business information technology, talking a better worker. about firms’ efforts to gain an edge in a com- —The Boston Globe, March 27, 2005 petitive business climate. he Chinese Communist Party is —Detroit Free Press, April 11, 2005 “T no longer a communist party as ne reason students are going we know it to be; it is a Chinese bureau- “O back is because opportunities are cratic capitalist party where the officials he public looks at Detroit as behind so tremendous. They say, ‘I can stay in have enormous incentives to make the “T the times, guys who can’t shoot the U.S. and work for a consulting firm economy grow, attract foreign investment straight and don’t deserve any govern- and have a slow-growth career, or I can and increase industrial production. This ment money to bail them out. I’m afraid go home and have the opportunity to is basically a pragmatic authoritarian we are witnessing the decline and fall of really dominate a market.’” system focused on maintaining economic the domestic U.S. auto industry.” Robert Kennedy, executive director of the growth for another 20 years without hav- Gerald Meyers, adjunct professor of manage- William Davidson Institute and professor of ing a social meltdown.” ment and organizations and former chairman of business administration, explaining a study he Kenneth G. Lieberthal, the William Davidson American Motors Corp., commenting on the conducted of Harvard MBAs from developing Professor of International Business and profes- nation’s response to the American automobile countries that showed 56 percent of the class sor of political science, talking about China’s industry’s financial problems. of 1997 had returned to their home region. economic development since it embraced eco- —The Detroit News, May 8, 2005 —The International Herald Tribune, April 16, 2005 nomic reforms 25 years ago. —Agence France Presse, May 18, 2005

DIVIDEND 13 FALL 2005 ALUMNI AT LARGE manager for the business Prudential acquired CIGNA’s school’s Executive Education retirement business. program, Kim handled set-up, “It’s a great job,” he prepared handouts and did declares. “If there is one word Accentuating other behind-the-scenes duties to capture what I do, it’s for the seminars and work- ‘leverage.’ The opportunity to shops. Working with corpo- lead nearly 2,600 employees rate executives from all levels managing on behalf of 4,000 the Positive exposed him to various leader- institutional clients serving ship styles, and increased his three million individual cus- JOHN KIM, BBA ’83 ease in working with people. tomers and being responsible ✷✷✷ for $130 billion in assets is telling people what they are both daunting and exciting.” not doing right, and forcing “If there is one word to Outside work, Kim’s priorities are his wife Diane, a 1986 them to adhere to some pre- capture what I do, it’s set norm,” Kim explains. graduate of the U-M College “POS emphasizes communi- ‘leverage.’ The opportunity of Engineering, and children Andrew, Emily and Caroline. cation that renews energy to lead nearly 2,600 and builds trust. If we give “I am doing my best to brain- managers the tools for more employees managing on wash them,” he notes. “The positive interactions, this will first song they learned was behalf of 4,000 institu- have a spiraling effect, benefit- ‘Hail to the Victors.’” He’s a ing individual employees and, tional clients serving three 15 handicap golfer, and esti- COURTESY OF PRUDENTIAL RETIREMENT as a result, the organization. mates that at least one-third “You can’t mandate posi- million individual cus- of the 40 rounds he plays each tive behavior,” he adds. “You tomers and being respon- year are business-related. must embody it personally Establishing the right and lead by example.” sible for $130 billion in vision, delegating and com- This is no stretch for Kim, assets is both daunting municating effectively are who is enterprising and opti- tasks he takes very seriously. mistic by nature. Born in and exciting.” He is excited about Korea, he traveled in the ✷✷✷ Prudential’s pioneering role United States as a child while in applying POS in a real- his father earned an advanced Following Michigan, Kim world context. “This is not magine working for a degree. The family settled in earned an MBA at the going to be one and done,” company that values peo- Port Huron, Michigan, where University of Connecticut he declares. “It will be an I ple more than products Kim developed an early inter- and pursued a career in ongoing initiative to improve and consistently rewards est in commerce. At 11, he investment management. He our culture. It’s already a their commitment and deliv- sold flower and vegetable joined Aetna Inc. in 1983, strong culture, and it’s going ers criticism in a way that is seeds door to door, and later serving as president and CEO to get better.” healthful, not hurtful. developed his own lawn of its investment subsidiary To Prudential Retirement mowing and snow removal in 1995–2001. He also was Pat Materka President John Kim, the business. One memorable president of CIGNA visionary management summer during high school Retirement & Investment in approach known as Positive he worked two full-time jobs, 2002–04 before becoming Organizational Scholarship operating a hotel elevator and president of Prudential (POS) is the key to building bagging groceries. Retirement in 2004 after and sustaining a world-class “Then like many dutiful organization. Working with Korean sons, I came to the Ross School’s research Michigan to become a doc- team, he has rolled out a cus- tor,” he relates. “Second- tomized program for semester inorganic chemistry Prudential Retirement’s top put an end to those aspira- 100 managers, who share tions. But an economics Kim’s enthusiasm. course turned me on to the “At its core, POS encour- excitement of business, and ages people in the organiza- I’ve never looked back.” tion to exhibit ‘positive One of his most valuable deviance.’ For generations, undergraduate experiences corporations have focused on occurred outside the class- negative deviance; that is, room. Hired as materials

DIVIDEND 14 FALL 2005 ALUMNI AT LARGE sees 5,000 employees statewide, business classes were limited and being accessible to each to typing and “school store.” of them is among his highest So his father enrolled him in priorities. a “How to Start Your Own Banking on “You must be proactive and Business” class at the local schedule that time,” he says. community college. “I know Besides meeting with senior that I was 15 at the time,” he bank executives, he holds recalls, “because my dad had Relationships monthly “town hall” forums to drive me to and from the for employees in different course.” J. MICHAEL DAVIS, MBA ’93 parts of the state. Some 50 to Davis went on to earn a 100 bank staff attend the gath- BA, cum laude, in economics erings, and Davis welcomes and English from Albion the opportunity to field their College. He joined questions and concerns. PricewaterhouseCoopers, Listening is a skill he honed finished his MBA in 1993, as a student at Michigan. “I and then worked at Raymond enjoyed the intense focus on James and later First of business and the opportunity Michigan (now known as to hear new perspectives and Oppenheimer) as head of opinions from my peers,” he investment banking and reflects. Although he special- executive vice president. He ized in corporate strategy and joined National City in 2002, finance, he now regards the where investment banking ✷✷✷ grew significantly under his leadership. In 2004, he became “I enjoyed the intense president and CEO, charged with making National City the focus on business and the leading market share bank in opportunity to hear new Michigan. After three years

STEVE KUZMA in Cleveland, the promotion perspectives and opinions brought Davis back to south- uring a dozen years from my peers,” Davis says east Michigan. of investment banking, In his volunteer activities, of his time at Michigan. D J. Michael Davis as with his work, Davis meas- served as adviser to some 270 ✷✷✷ ures success by the quality of domestic and international relationships. He is a board clients. He implemented organizational behavior member of Detroit Renais- mergers and acquisitions, pri- courses as the most valuable. sance, the Detroit Economic vate placements and public In his current role, the Club and Southwest Michigan offerings totaling more than emphasis has shifted from First, and active in a large $8.2 billion. managing transactions to number of organizations But Davis does not meas- managing relationships. focused on providing access ure success in numbers. It fits with his enthusiasm to education and improving “The best part was working for teaching. Davis, who lives the lives of children. “Every directly with the people who in Metro Detroit, has taught on kid deserves an equal start in owned the companies,” he the Ann Arbor campus since life,” he declares. relates. “And it was fascinat- fall 2000. His course, “Entrepre- “Every city faces challenges, ing that each of these transac- neurship via Acquisitions— and Detroit has all of them. tions encompassed virtually Finding and Evaluating a The city has to survive in all important facets of the Business for Acquisitions,” order for the rest of Michigan company’s daily operations, is always highly rated and to thrive. There is a lot of from accounting to market- over-subscribed. He has com- enthusiasm around the Super ing to human resources.” bined the paths of his mother, Bowl in 2006, as there was for What better preparation one of several generations the All-Star game,” Davis could there be for his current of teachers, and his father, reports. “I see plenty of signs position? As president and a Chrysler engineer who of hope and progress.” CEO of National City Bank advanced into management. Contact Davis at j.michael. of Michigan, he is now Both parents encouraged [email protected]. his early interest in business, involved in every aspect of a Pat Materka single business. Davis over- but at his high school the

DIVIDEND 15 FALL 2005 A Grateful Tom Jones Donates $10 Million Coming Soon: More Oomph to BBA Program f you are not busy being born, you are busy ‘‘ dying”— a paraphrase of I one of Bob Dylan’s more familiar lyrics—rings true with Thomas C. Jones, BBA ’68, MBA ’71. “It applies to BBAs and MBAs, who must be in a continuous process of renewal,” says Jones, adding, “The same can be said of organizations.”

STEVE KUZMA Acting on what he learned in and LSA courses as juniors and seniors. co-create new programs that prepare our 2003–2004 as the Ross School’s first BBA Jones is pleased with changes in the BBA graduates for a rapidly changing business Program director and first executive-in- Program. He believes more action-based environment,” Dolan says. residence, Jones this spring gave $10 mil- learning and cohesiveness in coursework University President Mary Sue Coleman lion to the school—the largest donation will make the BBA Program, already says, “Tom’s generous gift certainly raises ever to an undergraduate business pro- ranked among the top three in the nation, the bar for business education at the under- gram. His goal: to transform undergradu- even stronger. graduate level, here and elsewhere. We are ate business education. “Our graduates won’t live in a world of grateful for his incredible generosity and “One of the challenges of world-class finance or management. They must learn vote of confidence in our students and research universities like Michigan is to the basic disciplines and be able to blend faculty, Bob Dolan and the Ross School.” make sure we devote enough attention them together to solve business chal- to motivated undergraduates. I want the lenges. The success of the gift ultimately Building Community Ross School to take undergraduate busi- will be measured by the impact it has Jones, a graduate of Downers Grove ness education to a new level, to develop on the lives of students and how High School in Downers Grove, Illinois, the leadership the nation needs in gov- it strengthens their development while grew up in a business-oriented family. His ernment and business,” says the retired they are here,” Jones says. “I don’t want to father worked in the purchasing depart- insurance executive. prescribe what must be done. I want to ment of General Motors’ Electro-Motive Jones moved to Ann Arbor from challenge our students and faculty to take division for nearly 30 years and ran a Hartford, Connecticut, in 2002, after BBA education to the next level.” business that installed seat covers in auto- retiring as president of CIGNA Retirement The gift of cash and a bequest, Dolan mobiles. In 1996, Jones gave $1 million to & Investment Services. Michigan is a says, will be used to establish the Thomas endow the Jane M. and Chester R. Jones comfortable fit for the trim, silver-haired strategy expert who had visited Ann Arbor many times over the years, as a recruiter and as a past member of the business school’s Alumni Society Board of Governors. He co-chaired his 25th class reunion in 1996 and serves on the Ross School’s Visiting Committee. “I knew I wanted to be part of the University community. It is an interesting mix of Midwestern values and global perspective. I like the stimulation of being in a university town, the diversity of people and the cultural offerings,” says Jones, STEVE KUZMA who before he retired had discussed the idea of creating an office to serve under- Left, Richard Kus, BBA ’04, MAcc ’05, and his mother Kim, brother Ryan and father Paul chat with graduates with Dean Robert J. Dolan. Tom Jones at a reception honoring graduates prior to commencement. “Tom has been supportive of “Having someone with Tom’s leader- me in every thing I’ve done. He helped me reach my career goals. It is clear he really cares about ship experience and expertise in the area the business school community,” says Richard Kus, who received a CIGNA scholarship his junior of strategy and organizational alignment year and a Jones scholarship the next year. “I sent a thank-you note to CIGNA and shortly after met on our leadership team has been invalu- Tom. I appreciate all the advice he has given. We’ve continued to talk; he really is like a friend to able,” says Dolan. me,” says Kus, who works at PricewaterhouseCoopers in financial services. Jones served on the seven-member task force that recommended significant structural changes in the undergraduate C. Jones Center for BBA Education “to Undergraduate Scholarship in memory of program. In fall 2006, the school will enhance the core experience via a set of his parents. He also has donated $500,000 admit about 70 students directly from activities that allow for the development to the Dean’s Innovation Fund to finance high school, and also begin a transition of students in extraordinary ways”— innovative faculty and student projects from undergraduates typically beginning activities above and beyond the school’s and programs. their association with the school as juniors existing responsibility to deliver to Speaking at the Ross School’s annual to starting as sophomores. Historically, BBA students a quality core educational Scholarship Recognition Dinner in Michigan undergraduates have spent two experience. March, Jones said his Michigan experi- years in the College of Literature, Science, “With his endowment for the new ence “changed his life” and gave him the and the Arts (LSA) and applied to the BBA center, Tom supports the strategic “skills, tools, polish and confidence” to be business school during their sophomore direction of the school and ensures that a successful business leader. “I would not year for admission as juniors. our undergraduate students will benefit be the person I am today without the The new coordinated experience will from action-based learning and leader- guidance and support I received from the allow business students to study business ship development that characterize Michigan faculty and staff,” Jones said. fundamentals early in their undergradu- our MBA program. His gift also makes “And because of all they’ve given me, I ate career and take upper-level business it possible for faculty and BBAs to wanted to give something back.

DIVIDEND 17 FALL 2005 LEFT Jason Beyer, Ryan Levine, both BBA ’05, lot of time working to create community. surer, where he played a key role in four and Tom Jones at the reception. The RA and RD roles complemented my successful public stock and bond offerings. business school classes and allowed me to Jones joined CIGNA Corp. in 1994 as RIGHT Jones congratulates Brian Shimmerlik, practice what we were learning.” president of CIGNA Reinsurance BBA ’05, after the April 29 commencement Property & Casualty, where he organized ceremony at Crisler Arena. Thinking Strategically and led a review of strategy alternatives Labor relations, management and that resulted in the firm’s decision to PHOTOS BY STEVE KUZMA organizations courses taught Jones how increase shareholder return by selling the to approach people to move them for- property and casualty reinsurance business. “Like all Ross School of Business grad- ward. Armed with two business degrees He also served as president of CIGNA uates, I think of myself as a builder, and a teaching certificate from the School Individual Insurance, president of CIGNA someone who understands that shaping a of Education, Jones considered two other Investment Management and president of winning organization—university, busi- career paths—K-12 teaching and labor CIGNA Retirement & Investment ness or career—requires strategic think- management relations—before pursuing Services, one of the nation’s leading asset ing. Thinking strategically demands that the third, government, which he chose management and retirement services firms you not only visualize the future, but also because it would allow him to give back with assets of more than $80 billion. invest in a focused and disciplined way to and have an immediate impact. He left CIGNA Retirement & Investment make sure your vision comes to life.” Starting as assistant education adviser Services in the capable hands of another For Jones, scholarships are strategic in the Office of the Governor in 1971, Ross School alumnus whom he had investments in talented students and in Jones worked on school finance reform. recruited: John Kim, BBA ’83. As part the growth and development of the Ross A year later he moved to the Commerce of a repositioning strategy, CIGNA sold School of Business. “They’re investments Department, first as assistant director Retirement & Investment Services to based on the belief that people make a and then deputy director, where he Prudential. The firm is now known as difference and that attracting and retaining applied what he had learned in strategy Prudential Retirement, and Kim is its top talent is critical to an organization’s courses to policies related to finances, president. See page 14. success,” said Jones, who received the power plants, workers’ compensation and Jones and his CIGNA team are fea- Bert F. Wertman Alumni Service Award economic development. tured in Building the Bridge as You Walk at the dinner. Established in 1989, the “Even in those days we were concerned on It (Jossey-Bass, 2004), written by award honors Bert F. Wertman, BBA ’28, about diversifying Michigan’s economy,” Robert E. Quinn, the Margaret Elliott and recognizes outstanding service to the recalls Jones, who Governor William Tracy Collegiate Professor of Business business school or University. Milliken appointed Commissioner of Administration and professor of manage- Jones attended Northwestern Insurance in 1975. In that post, Jones ment and organizations, in the chapter Michigan College in Traverse City, devised and implemented a strategy to titled “Transforming Others by Michigan, before transferring to the restore the financial strength of Blue Transforming Self.” In the book, Jones University of Michigan, where he con- Cross/Blue Shield of Michigan and recounts how he and his senior team centrated in labor relations. He still has decrease pressure on state healthcare applied ideas from Quinn’s previous ties to the Traverse City area and serves costs. The measure defused a major polit- book, Deep Change, and challenged as a fellow at the community college. ical controversy for Milliken. themselves to change as individuals. “The culture of the business school Working in government is similar to “I really believe one person can move a was very different when I was a student. running a business, says Jones. “You’re system,” Jones says. There were not as many activities or an leading people and dealing with strategy “Tom has one of the finest strategic emphasis on building community. It was issues. It also provides tremendous minds I’ve encountered,” Quinn says. not as cohesive,” Jones recalls. opportunity at a young age to accomplish “His integrity is such that the people who Bursley Residence Hall on North Cam- things and move ahead quickly.” work for him are incredibly loyal and pus was not quite finished when he moved Jones made the public-to-private job supportive. Tom is a quiet, humble man, there in 1967 as a resident adviser (RA). transition in 1979, working briefly at an but when you come to know him, you Jones went on to become resident director insurance brokerage before moving into the discover this treasure trove of capacity (RD). “It was my first job supervising reinsurance business. In 1985, Jones became and accomplishment.” people; I had four RAs. Both jobs helped a founding board member and chief Mary Jo Frank develop leadership skills and required operating officer of NAC Re Corp., a pub- getting people to work together. I spent a licly traded property and casualty rein-

DIVIDEND 18 FALL 2005 TOM JONES: Those Who Anticipate Will Flourish

veryone needs to be an agent of faculty director, program associate and change,” says Thomas C. Jones, two advisers.” E who has studied the work of C. K. Michael Phillips, BBA ’05, former Prahalad, the Harvey C. Fruehauf vice president of BBA affairs in student Professor of Business Administration government, says of the focus group ses- MARTIN VLOET and author of Competing for the Future. sions, “Discussions like that quickly can In a keynote speech to the seventh turn into rant sessions for students who annual Business Tomorrow conference want to complain. However, Tom put in in New York City in 1996, Jones predict- the time and effort to understand the ed: Those who ignore change will not basis of the complaints, and he didn’t survive for long. Those who react incre- stop taking feedback.” mentally to change will struggle to sur- Phillips, who is now an analyst with vive. Those who anticipate change will A. T. Kearney in Washington, D.C., flourish. says Jones also personally reviewed his “Today’s BBA graduates are going out resume. “The fact that Tom took time into a different world than I did. The tal- to tell me what he thought I could do Jennifer Trepeck, BBA ’05 ent in this community of students is con- to improve was pretty special since he siderable,” says Jones. “Their quality, has been in the position to hire and fire maturity, focus and drive have improved people.” able with CUNA Mutual because it com- dramatically since I was here. People Jennifer Trepeck, BBA ’05, says, bines business and public service— a whohavenot worked with BBAs are “When our business fraternity brother nice mix of my interests,” says Jones. shocked at how mature they are. It is also Joe Hadeed passed away, Tom contacted Jones also likes to read, particularly striking how organized they are when it biographies and history. One of his comes to juggling classes, jobs and 333 favorites is the biography of statesman extracurricular activities. I’ve often told “Today’s BBA graduates are going out Alexander Hamilton, George Washington’s our students that it would be fun to run a secretary and aide-de-camp during the business again and have the opportunity into a different world than I did. The American Revolutionary War and the to hire them all.” talent in this community of students nation’s first secretary of the treasury. As BBA Program director, Jones initi- “Alexander Hamilton was quite extraor- ated focus groups to learn students’ is considerable. Their quality, maturity, dinary. Without a word processor, he wrote most of the Federalist Papers while needs and aspirations, and in the process focus and drive have improved dramati- he became an adviser and mentor to running his own law practice. He was a many. cally since I was here.” BBA-type person— driven, the original multi-tasker,” Jones says. “Once Tom opened his door, the 333 BBAs flooded in,” says Scott A. Moore, director of the BBA Program, Arthur F. us about organizing a memorial. Tom Thurnau Professor and associate profes- arranged for a bus so we could go to the sor of business information technology. funeral home together. He helped us “Before he took an interest in BBA stu- organize a vigil and worked with us on dents, they had been somewhat lost in the bench in memory of Joe so it would the shuffle. Now the BBA Program has a be what we wanted it to be.” The memorial bench is in the Keith E. and Valerie J. Alessi Courtyard. Michael Phillips, BBA ’05 When he is not helping students or thinking about organizations, Jones, who participated in the Advanced

Management Program of Harvard MARCIA LEDFORD University’s Graduate School of Business STEVE KUZMA Administration, keeps up with the latest Above The memorial bench bears the inscrip- in the insurance field as a director of tion “To know your limits is to realize you have CUNA Mutual Group, the leading finan- none. In memory of Joe Hadeed, BBA 2004, cial services provider to credit unions 1982–2004.” and their members. “I’m very comfort-

DIVIDEND 19 FALL 2005 Undergrads Look at Corporations through a Global Lens hen Charles Spiekerman, Left to right, front row: Melany Hamner, Mona ICPA representatives Peter Tisman, left, and James Emily Walkowiak and Ray Lai Maitra, Li’er Wong and Grace Augustine; back Wardell and Professor Jim Walsh discuss ways W were picking classes last winter, row, Elizabeth Balten, Emily Walkowiak, Kurt to encourage ethical business practices. Professor James P. Walsh’s course, “The Beyerchen, Charles Spiekerman, Jia Jian Lee, Corporation in Society,” sounded promising. Ryan Ford, Rita Schiesser and Ray Lai. At the conclusion of the term, 12 of And that was before they knew about an the 33 students elected to travel to Hong optional trip to learn about companies’ In the classroom for the four-month Kong and China with Walsh and Eric roles in society from an Asian perspective. term, Walsh focused on theory. Under- Neuman, a third-year Ross School PhD Walsh’s class and the May trip to Hong graduates studied the history and theories student in management and organiza- Kong and China exemplify the instruc- of the corporation, contemporary practices tions. The Ross School group was joined tional opportunities Dean Robert J. Dolan of corporations, stakeholder management, by three students enrolled in the Chinese refers to when he says the Ross School the consequences of corporate irresponsi- University of Hong Kong. They helped trains leaders in theory and practice. bility for employees and customers, gov- the Ross students better understand what Because these are BBA students, it’s also ernance failures, accountability and lead- they were seeing and hearing in Asia; an example of the innovation Thomas C. ership. “Perhaps the most difficult chal- two of the three are taking classes at Jones envisioned when he established the lenge for managers is to sustain their the University of Michigan as exchange Jones Center for BBA Education earlier noble aspirations while meeting the prac- students this fall. this year. This educational experience trans- tical demands of getting work done and In Hong Kong, students met with rep- formed both students and teacher. For satisfying shareholders,” Walsh says. resentatives at the Institute of Certified Walsh, an acclaimed MBA instructor who “Rooted in a clear understanding of cor- Public Accountants (ICPA), Oxfam Inter- had never before taught BBA students, it porate governance, this course provides national, the Independent Commission was a new and rewarding experience. For a broad framework for appreciating the Against Corruption and the Equal Oppor- the students, the world suddenly became ✷✷✷ tunity Commission and sat in on a semi- a much bigger and a much smaller place. nar about the corporation in society that “Perhaps the most difficult challenge for Walsh taught to Executive MBA students On page 20, the Institute of Certified Public managers is to sustain their noble aspira- at the Chinese University of Hong Kong. Accountants’ office provides Ross School stu- The Ross students also spent three days dents a view of Hong Kong’s financial district tions while meeting the practical demands visiting the cities of Huizhou and Shenzhen and the Bank of China Building by architect of getting work done and satisfying share- in China’s Guangdong Province. I.M. Pei. Refer to the chart below to identify the “From the time we woke up until the individuals in the insets. holders,” Walsh says. “Rooted in a clear time we fell asleep, PHOTOGRAPHS BY GRACE AUGUSTINE, understanding of corporate governance, our brains were in MING PHOTOGRAPHY, ERIC NEUMAN, overdrive, ruminat- CHARLES SPIEKERMAN AND JAMES WALSH. this course provides a broad framework ing about sustainabil- ity and the Chinese for appreciating the expanded role com- culture,” says Emily RAY LAI AND RYAN FORD panies are being asked to play in society.” Walkowiak, BBA ’05, who is poised to work EMILY ✷✷✷ WALKOWIAK at Ford Motor Co. AND expanded role companies are being asked “I enjoyed the KURT BEYERCHEN JIA JIAN to play in society.” animated discussion LEE This whole notion of corporate account- we had with repre- ability and responsibility was new to sentatives from the MIKE CHENG, Charles Spiekerman, BBA ’06. But Walsh’s Hong Kong ICPA ELIZABETH LI’ER WONG BALTEN, AND GRACE classroom technique quickly got him up about ‘gently encour- JIA JIAN LEE AUGUSTINE to speed. “We had to submit discussion aging’ business lead- AND MELANY HAMNER questions based on the readings before ers to practice ethical each class, which made us focus our corporate gover- thoughts and encouraged participation,” nance versus the JIM WALSH says Spiekerman, who was concentrating United States’ Kalina Tsang, RITA SCHIESSER in accounting but is now thinking about stricter, more rules- AND MONA MAITRA a career in operations management. based approach. Our Oxfam Hong Kong

DIVIDEND 21 FALL 2005 The students’ China itinerary included markets, a a passionate corporate activist who is not the most successful electronic wire and Huizhou factory that makes injection molding so enamored with the “gentle encourage- cable manufacturers in China. Students machines and sightseeing at West Lake in Huizhou. ment” approach to governance reform. were surprised to see a state-of-the-art “It was a head-spinning experience to factory that belied stereotypes of China’s visit to the Equal Opportunity Commission hear two incredibly articulate and yet undercapitalized and poorly run facilities gave greater meaning to concepts such as wildly different approaches to the same producing low-quality products. bona fide occupational qualifications and problem,” says Walsh. At the second factory, Cheng Hsong discrimination tests,” Walkowiak adds. The trip also allowed everyone to gain Group, students watched Chinese workers “I was surprised by the level of the a sense of Hong Kong’s business environ- produce high-quality items for multi- people we were talking to,” says Ray Lai, ment. “The Independent Commission national corporations, including injection BBA ’06. “Usually, when students go to a Against Corruption, or ICAC as it is known molding machines weighing up to 75 large corporation, you expect to talk to locally, is kind of a hybrid between the tons, and talked to mid-level and top public relations staff. We were talking to FBI and the SEC. It focuses as much on management about their challenges. top people in the organizations.” educating the public about the perils “We were blown away by the factories From Jim Wardell, executive chairman of bribery and corruption as it does on we saw. I don’t know how the U.S. will of the Horwath Corporate Advisory detection and punishment,” Lai explains. compete. It alarmed some of us,” confesses Services Inc. and a member of the ICPA “They have created a much more trans- Lai. “The Chinese sometimes substitute board, students heard an insider’s view of parent system for the fluid movement labor for capital but they do so while main- government oversight designed to ratchet of capital. Their strategy has been pivotal taining high quality and incredible produc- up ethical corporate behavior. When in keeping Hong Kong the financial tion flexibility. We now know much more Wardell shared his conviction that the capital of the East.” about what a global economy really is.” sole responsibility of business is to make In Guangdong Province, a manufac- The factory tours gave Ryan Ford, profits, students quickly engaged him in a turing center in southern China, the past-president of LSA Student Govern- spirited debate. group visited LTK Electrical Wire, one of ment and one of five LSA students who “Well aware of the arguments for and went on the trip, an insight into the against the views of Nobel Prize-winning LEFT Charles Spiekerman in a dim sum mind-set of Asian businesses and the economist Milton Friedman, our students restaurant East’s and West’s differing views of supply took the conversation to a sophisticated CENTER Rita Schiesser, Eric Neuman and chain management. “The goal in the level very quickly,” Walsh recalls. The Kurt Beyerchen West is to build efficiencies in a kind of visit served as a wonderful foundation for RIGHT Left, Jia Jian Lee from the Ross School partnership relationship. In China, it the visit to Oxfam, where the students and Mike Cheng from the Chinese University appears the main goal is to reduce costs. spent the afternoon with Kalina Tsang, of Hong Kong in the subway station As a result, suppliers aren’t as loyal; they LEFT Between meetings with business and factories. I think they work harder than possible to do with BBA students. I saw NGO leaders, students and their professor we do. It made me appreciate what I have his passion and how he poured himself relax in a downtown Hong Kong park. They here. I would visit again, but I don’t think into this class. He was very generous with are, left to right, Elizabeth Balten, Melany I could live in China.” his time. He pushed them to think deeply Hamner, Jian Jian Lee, Jim Walsh and Ray Lai. Among the highlights for students and hard about important questions.” RIGHT Lunch in Hong Kong were intense debriefing sessions where Walsh, a teacher/scholar in the the group discussed information manage- Executive and Day MBA programs, have high turnover. It remains to be seen ment, transparency, the world economy, Executive Education and the PhD pro- which system will prevail,” says Ford, multinational corporations, corporate gram, taught the course to demonstrate who graduated in April and is now an governance, leadership and capitalism. that action-based learning could be actuarial analyst in CIGNA Insurance’s Eric Neuman, who taught BBA students extended to BBA students. He is teaching pricing department. last year and assisted Walsh on the trip, the course again this fall. “BBAs want The tours also illustrated what the stu- says his research agenda has been to think deeply about ideas and how dents had learned about labor relations. enriched by the experience. “It was my principles shape lives,” he says. “It is a joy “We saw people working 10-12 hours a first trip to China and Hong Kong. It to work with people this engaged day, six days a week, earning 40 cents an helped me think even more clearly about and smart.” hour,” Ford says. “They didn’t appear to how my research connects to organiza- None of the students were close be working in sweat shops. The facilities tional theory and how organizations friends before they boarded the plane were clean. Employees want to work over- interact with society,” he says. “We trav- for the 23-hour trip to Hong Kong. time, managers said, and if overtime is not eled halfway around the world but so They returned home talking about available, they will work for someone else.” many things are the same, including reunion events. “It was magical to see The companies provide food at cost, similarities in our way of life and life the way our students connected with housing in dormitories and transporta- in Hong Kong and China. We saw the each other and with the course material tion, so employees have few expenses. Lai global convergence.” in businesses, NGOs and government says: “Forty cents an hour goes a long way Neuman also picked up some teaching agencies—all on the other side of the over there. A loaf of bread costs a yuan, tips. “I learned from Jim about what is world,” says Walsh. or about 12 cents. A 20-ounce bottle of Mary Jo Frank water costs the equivalent of 24 cents. We Ross School students discover a fast, clean have car payments and rent or a mort- and inexpensive mode of transportation — gage. Their costs are less than ours.” Hong Kong’s subway. At the station, from left “Everyone works hard,” says Walkowiak. to right, are Mona Maitra, Emily Walkowiak, “They leave their families to work in the Li’er Wong and Grace Augustine. ST Target Case Competition 1BBA Seniors Experience the Real Deal

enior BBA students in Professor product categories and recommended corporate strategy/international business Lynn Wooten’s Corporate Strategy/ ways Target should leverage its strengths and management and organizations. “I see S International Business course to capture profitable market share for this elective—in which students have to wrapped up their academic work this these groups. do more scoping and analyzing strategic spring with a Ross School first—a Target The Target case competition is just business problems through interviewing Corp. case competition, The Apprentice- the sort of intellectual challenge that will customers and companies—as a rite of style. Four teams of finalists pitched their increase this year and in the future for passage and preparation for a career in a business solutions to Target executives in many more BBA students, thanks to a professional service firm.” Hale Auditorium in front of a live audi- $10 million gift from Thomas C. Jones, Wooten says the Target-sponsored ence. No one was fired. retired president of CIGNA Retirement & case competition is a win-win. “Target Target’s primary customer—female, Investment Services and the first director looks for partners as part of its efforts to age 44, well-educated with a moderate to of the Ross School’s BBA Program. He expose new BBAs to retailing. A large better income—will continue to be at the established the Jones Center for BBA proportion of internal and external con- center of Target’s strategy. However, as Education to make it possible for more sulting is developing retail markets, so economic shifts in disposable income undergraduates to experience the types the action-based learning experience occur, Target will have opportunities to of programs usually provided only to with Target is a good fit,” says Wooten. connect with new, loyal, long-term cus- MBA students: senior capstone courses Two graduate students, Neerav Shah and tomers, according to the analysis provided that require students to integrate and Madyé Seymour, both MBA ’05, served to students. apply knowledge from across many disci- as Wooten’s teaching assistants. Wooten Working as consultants, the BBA stu- plines, creative programs with a strong patterned the Target consulting assignment dents created strategic growth plans for leadership focus and action-based learn- as closely as possible to the seven-week Target, looking specifically at the “tween” ing like the Target competition. Multidisciplinary Action Projects (MAP) (8- to 14-year-olds) and “zoomer” (40- to “BBAs are my passion,” says Wooten, required of first-year MBA students. 60-year-olds) generations across various PhD ’95, clinical assistant professor of Selecting the two first-place winners

DIVIDEND 24 FALL 2005 was a challenge, says Chris Hagestad, Yogiaman took first place in the zoomer Target director of merchandise planning, category. The team of Kyrsta Bartnick, decorative home and housewares. He and Andrew Finn and James Kempa won the Reba Dominski, a 1983 LSA graduate tween competition. and Target director of intimates/ Dietrich, who joined J. P. Morgan hosiery/shoes, jewelry and accessories, Chase Investment Bank in Chicago after judged the presentations. They based graduation, says the more than 12 hours it their decisions on the breadth and cre- took to assemble her team’s PowerPoint ativity of the students’ research and the presentation was worth the effort: “I felt students’ use of media elements in the like this was the culmination of my BBA final presentations. experience.” Members of the two first-place teams Wolfe, who now works at Unilever each won $500; students on the second- on consumer packaging, agrees. “This place teams received $250. Christy project tied together all I have learned Dietrich, Mari Jarvinen, Paul A. over the past four years and gave me the Mestemaker, Marie Wolfe and Anita opportunity to integrate my knowledge into real-world solutions. It was the perfect rehearsal of a skill I will need to succeed in business — the ability to draw on my knowledge and creatively apply it to current issues.” ABOVE (top) Scott A. Moore, director of the Historical case studies are interesting BBA Program, chats with Target representa- but not as powerful as developing real tives, seated left to right, Chris Hagestad, Reba business solutions, pitching recommen- Dominski and Jared Nypen, in Hale Auditorium. dations to high-level executives and knowing perhaps someday a major ABOVE (bottom) Collier Bern, BBA ’05, retailer will implement your ideas, says and Professor Wooten at a reception for case Mestemaker, who found the competition competition participants and guests

LEFT Student teams developed real business solutions and recommended ways for Target to leverage its strengths to capture profitable market share for “tween” (8- to 14-year-olds) and “zoomer” reinforced lessons he had learned about a zoomer in an ad and noticed that two (40- to 60-year-olds) generations. the importance of understanding the Target representatives in the audience who ABOVE Professor Lynn Wooten poses with, business, customers and audience. fit into the zoomer category appeared to left to right, Christy Dietrich, Marie Wolfe, Mestemaker, now a Microsoft program be somewhat taken aback. “To validate Mari Jarvinen, Paul A. Mestemaker and manager, says, “During the Q & A sec- my point, I had to reframe my terminolo- Anita Yogiaman, winners of the zoomer tion, we had to answer a question about gy while tying in facts about the business category in the case competition. potentially tarnishing Target’s brand by and customers so that it would better associating it with zoomers. As our relate to the audience.” RIGHT Left to right, James Kempa, Andrew analysis showed, zoomers—40- to 60- After spending part of his winnings Finn sporting the tween look and Kyrsta year-olds—do not like being known as on a team celebration at Dominick’s, Bartnick, winners of the case competition old or on the verge of retirement.” Mestemaker invested the rest in Target in the tween category Mestemaker had to do some quick stock. He has a hunch it will “go straight thinking at one point in the presentation through the roof.” ALL PHOTOS IN THIS ARTICLE BY STEVE KUZMA after he used the word “old” to describe

DIVIDEND 25 FALL 2005 iscussions about climate change prise. In doing so, participants identified DTE Energy, which has $21 billion in must shift beyond science to issues common themes and achieved broad energy assets, is replacing old turbines D the public, business leaders and agreement on one issue: It is time to stop with ones that are 7 percent more effi- policymakers care about—jobs, trade and debating the science associated with cli- cient. “We’re also in the biomass business, national security, said Bracken Hendricks, mate change and act. extracting methane from landfills and executive director of the Apollo Alliance, “We make decisions without certainty starting to extract methane from aban- a coalition of labor and business leaders, every day,” said Michelle Manion, a sen- doned coal mines,” Anderson said. environmentalists and community ior analyst with the Union of Concerned Most industry leaders are not excited groups. “Do we want a GE global econo- Scientists. “Life is an exercise in risk man- about the restructuring they anticipate my or a Wal-Mart economy?” he asked. agement. We need to make it simple and will be necessary to reduce greenhouse Hendricks was one of 80 business- frame the climate change debate in terms gas emissions, Anderson admitted. “They people, policymakers, environmental of families and our children’s future.” think in terms of ‘what plant will I have activists and scholars who gathered at the to close next?’ We need to get beyond Ross School in June to talk about ways Jobs and Trade that mindset and define the workable first to engage a broader constituency in dis- A case in point was DTE Energy. steps to overcome the fears of economic cussions about climate change. Through its energy management program, dislocation at the heart of stalemate. The The University of Michigan’s Center DTE Energy is helping business customers act of taking the first step is more impor- for Advancing Research and Solutions for become more efficient; the utility has tant than the first step itself. Once people Society teamed up with the Frederick A. reduced DaimlerChrysler’s energy costs do it, they find taking the second and and Barbara M. Erb Institute for Global by $50 million a year. The firm also is third steps more workable.” Sustainable Enterprise to sponsor the working with the Nature Conservancy to The Apollo Alliance’s Hendricks rec- conference “Reframing the Climate plant millions of trees in the Mississippi ommended building consensus by talking Change Debate: Jobs, Trade, Security and Delta on land once cleared for soybean about how a clean-energy future can cre- a Revised Research Agenda.” The confer- production. DTE Energy President ate well-paying jobs. He told of an ence exemplified the Erb Institute’s mis- Gerard M. Anderson, MBA/MPP ’88, Evergreen Solar manufacturing plant that sion to provide knowledge and leadership believes that forest restoration on a large has hired employees previously laid off by for the achievement of ecologically, eco- scale can improve water quality and con- Polaroid to build a plant in Germany, nomically and socially sustainable enter- trol erosion. where aggressive policies support the

DIVIDEND 26 FALL 2005 solar industry. Rewiring buildings, rolling U.S. was a leader in wind energy and George H. Kuper, CEO of the Council new steel and expanding markets for coal turbines. Now we’re behind and playing of Great Lakes Industries, noted that would create new job opportunities, said catch up, Manion asserted, contending some companies already are reducing Hendricks, who estimated three the United States has mistakenly devoted their energy consumption and green- million jobs could be generated by bold too much time to discussing the science house gas emissions but are doing it investment in renewable energy projects. of climate change rather than the politics. quietly because it gives them a competi- Self-interest prompted change among Two days before the conference, Cali- tive advantage. The nonprofit council the United Mine Workers of America fornia Governor Arnold Schwarzenegger represents the interests of U.S. and (UMWA). The miners union, once one of announced steps to reduce California’s Canadian industrial organizations for the the leading labor organizations opposed greenhouse gas emissions 25 percent by manufacturing, utilities, transportation, to the Kyoto Treaty, has changed its posi- 2020. Thomas P. Lyon, the Dow Chemical communications, financial services and tion and now endorses a National Professor of Sustainable Science, Technol- trade sectors that have investments in the Commission on Energy Policy proposal ogy and Commerce and a conference Great Lakes Basin. for mandatory greenhouse gas controls, organizer, noted other political leaders which is attracting support from the also are taking a stand. More than 130 business community. Low-cost energy U.S. mayors have vowed to implement BELOW Left to right, Bracken Hendricks, has been a competitive advantage in the the Kyoto Treaty in their cities. Eugene Trisko and Erb Institute student Alexis U.S., one the nation must maintain, said The size of the U.S. domestic market has Olans, MBA/MS ’07, discuss how to reframe UMWA Attorney Eugene Trisko. “India been one of this country’s great advan- the climate change debate. CONFERENCE PHOTOS BY MARTIN VLOET and China are taking jobs from us. Our tages, said Marina Whitman, professor of National Security greatest opportunity is to export our business administration and public policy. Equally important as jobs is national energy technology so those countries can If California or the Northeast were to security, according to many conference develop and develop cleanly.” impose stricter environmental standards, participants, including Daniel Lashof, “GE acknowledges that climate change a fragmented market would impose sub- science director of the Climate Center, is here and says ‘we’re going to make stantial competitive and economic costs Natural Resources Defense Council, and money off it,’” Manion said. “Business for companies operating in a national Reid Detchon, executive director of the leaders like GE CEO Jeffrey R. Immelt and global market, she noted. Energy Future Coalition and senior are staking their careers on the need to Market forces alone fail when it comes adviser to the United Nations Foundation. change. GE is investing in new technolo- to providing collective goods such as clean More than 40 percent of U.S. carbon gy, not because it is trendy or moral but air and water, Whitman said. Because no dioxide emissions come from oil, Lashof because it presents business opportunities one investor can reap the gains from said, explaining the Middle East has 60 for GE.” actions needed to mitigate climate change, percent of the world oil reserves, while “It is not surprising that businesses such it is reasonable to think the market will the U.S. has only 3 percent and imports as GE and DTE Energy are in the vanguard need a kick-start to move in the right 50 percent of its oil. when it comes to dealing with climate direction. Price mechanisms in the form Although the U.S. is less dependent on change,” said Andrew J. Hoffman, the of taxes or government subsidies are likely oil from the Middle East now than it was Holcim (U.S.) Professor of Sustainable to be more effective than mandates, added in 1974, oil still influences national secu- Enterprise and a conference organizer. Whitman, who also talked about the rity. Being less dependent would have “Ac t ion on global warming—at home and need to build trust between government strategic value, said Lashof. “Dependence abroad—affects the bottom line, and they and industry. on oil is dangerous because it affects for- want a say in how that happens. Inaction “The major barriers to climate change eign policy; and at $60 a barrel times 2.5 creates regulatory and market uncertainty, remediation are political,” said Lana million barrels a day, we’re spending $150 something business abhors.” Hoffman is Pollack, president of the Michigan Environ- million a day on oil. It is dangerous for an expert on change within institutional mental Council. “Business must send a our economy to be sending that much and cultural systems and the implications signal to politicians that there is a problem money to other countries,” said Lahof, of environmental protection for industry. and that business is on board when it who suggested the U.S. set flexible but In the late 1980s and early 1990s, the comes to making changes,” she asserted. enforceable benchmarks for future savings.

DIVIDEND 27 FALL 2005 Detchon agreed that reducing the flow technological breakthroughs when we ABOVE Left to right, Thomas P. Lyon, Dan Lashof, of money to the Middle East is in America’s already have hybrids, diesel hybrids, dis- Reid Detchon, Professor Emeritus of Psychology best interest. “We ought to allow Americans tributed turbines and biodiesel,” he added. Robert L. Kahn and George W. Klinge discuss to lead the lifestyle they prefer but with less To move the nation to adopt a cap on the influence of oil on national security. environmental damage,” he said. Cellu- carbon emissions, Cochran said, “We lose ethanol—a biomass substitute for have to talk to people about things they illustrates what can happen when we gasoline—is an attractive alternative and care about.” When Environmental Defense reframe the climate change debate,” could help decrease America’s depend- talked to focus groups of economic and Hoffman noted. ence on foreign oil. Already 40 percent of social conservatives in South Carolina, The nation’s ambivalence about address- Brazil’s fuel is ethanol-based, he noted. Ohio and Kansas, they were willing to ing climate change may in part be the fault Truman Semans, director of markets support a climate stewardship act that of scientists, George W. Kling, professor and business development at the Pew uses market forces to reduce air pollution of ecology and evolutionary biology, told Center on Global Climate Change, said and encourages the use of alternative his colleagues. He said scientists have America’s dependence on foreign oil and fuels, said Cochran. failed to communicate adequately what China’s growing energy demands have “Environmental Defense’s experience they do. As a result, people are not well ramifications for U.S. national security. informed about the scientific certainty of BELOW Left to right, Andrew J. Hoffman; climate change and have difficulty weigh- What Next? Economics Professor Stephen W. Salant; ing in on the climate change debate. “We don’t know what life will be like in Christine Kirchhoff, doctoral candidate at the Researchers who attended the conference 50 years,” said Steve Cochran, director of School of Natural Resources and Environment; will continue to meet. One of their goals is strategic communications for Environ- Marina Whitman; Assistant Professor of to conduct cross-disciplinary research that mental Defense. The unknown should not Business Law David W. Hess; and Professor will provide factual, useful information be a barrier to taking steps now, he said. Emeritus of Corporate Strategy LaRue T. about climate change that the public and “We must focus on near-term opportunities. Hosmer are among University of Michigan policymakers can trust, Hoffman said. We’re spending too much time seeking scholars interested in climate change. Mary Jo Frank

RESEARCHERS SEEK and Richard H. Price, research professor behavioral science, emphasizes problem- at the Institute of Social Research’s Survey oriented, team-based projects that bridge TO UNDERSTAND Research Center and professor of man- disciplines and link research and practi- THE IMPACT agement and organizations at the Ross cal applications. OF MULTINATIONAL School. The initiative is supported by the The more than 40 faculty members who University’s Center for Advancing Research participated in the climate change confer- CORPORATIONS and Solutions for Society (CARSS). ence represented 12 of the University’s 19 “Our goal is to understand the impact schools and colleges and 20 departments. he conference “Reframing the of multinational corporations on five T Climate Change Debate: Jobs, Trade, domains: natural environment, health, Security and a Revised Research Agenda” human capital and education, social capi- is part of a larger research initiative at the tal and social structure, and income and University of Michigan focusing on “The inequality,” said Davis. Global Corporation and Human Well- CARSS, established in 2003 to extend being” initiated by Gerald Davis, profes- and strengthen the intellectual and Gerald Davis sor of management and organizations, methodological foundations of social and

DIVIDEND 28 FALL 2005 cautious about adding complexity. If it were too complex, students wouldn’t get it; and if it New‘‘Gas Mileage Game’’ were too simple, they wouldn’t learn,” he said. Zimmerman believes the course appeals Fuels Understanding to a broad range of students. “I would like to see a nice mix of students from the Ross School, School of Natural Resources and of Environmental Policy Environment and Gerald R. Ford School of Public Policy take the class,” he said. usinesses increasingly are calling “American consumers may be starting No one wins in the game. “The essence upon managers to deal with issues of it is learning. Students are graded to care about higher gas mileage more B seemingly beyond their control, such on their debriefing— the strategies they as governmental actions, media attention than in the past and may be willing to used for the issues they encountered,” and public scrutiny. A new course, “Non- Zimmerman explained. market Strategy: Setting the Rules of the pay more for fuel efficiency.” Zimmerman and Bos anticipate the game Game,” offered for the first time last 222 will evolve over time. “We may have to winter at the Ross School, gives students change the market algorithm next year to real-world insight by examining strate- ment and factor this into their decisions. reflect higher gas prices,” said Bos. “Ameri- gies for dealing with these types of issues According to Nathan Bos, assistant can consumers may be starting to care about and their public policy implications. research scientist in the School of Infor- higher gas mileage more than in the past Martin Zimmerman, clinical professor mation and co-developer of the game and may be willing to pay more for fuel of business and former Ford Motor Co. along with Zimmerman and Lyon, the efficiency. We will pay close attention and executive, and Thomas P. Lyon, the Dow game draws upon conceptual frameworks think about ways the game can and should Chemical Professor of Sustainable from economics, political science and be changed to reflect current conditions,” Science, Technology and Commerce, strategic analysis. he added. teach the course that Among questions reproduces the dynamics kept in mind during of public regulation-mak- game development were: ing. Topics addressed What is it like to be an include environmental and automotive executive safety regulation, interna- deciding whether to tional trade policy, corpo- upgrade your fleet’s fuel rate social responsibility efficiency or a member and the integration of of Congress deciding if market and non-market new environmental reg- strategies. ulation is warranted? Martin An innovative element “Tom and I relied Zimmerman in the course—the “Gas heavily on Marty for the Mileage Game”—immerses aspect of realism,” Bos students in real-world said. “We would problem-solving by allowing frequently ask things them to take on the compet- like, ‘what do govern- The “Gas Mileage Game” immerses ing roles of auto compa- ment and company representatives really students in real-world problem-solving. nies, government represen- talk about when discussing future regula- tatives and non-govern- tion, and what arguments do environ- At Ford, Zimmerman was responsible mental organizations. mental advocacy groups make and how for corporate economics, governmental In the game,members of do companies respond?’” affairs, environmental and safety engineer- Congress decide what, if Zimmerman, who retired from Ford ing, corporate citizenship and the Ford any, new gas mileage regu- as group vice president of corporate Motor Company Fund. Before joining Nathan Bos lations to enact while trying affairs in 2004, said the discussion often Ford, Zimmerman was a Ross School fac- to maximize their chances is about environmental benefits, politics ulty member and served as chair of the to be re-elected and do what is best for and, more important, costs. business economics group. He rejoined their constituents. Auto companies decide Bos, Lyon and Zimmerman tested the the faculty in January. whether to adopt new technologies that will game last winter on students who provided Zimmerman serves on the National improve gas mileage and try to influence valuable feedback. “We really benefited Commission on Energy Policy and the government regulation while preserving from their input. It was a learning experi- board of the National Bureau of Economic sales, market share and profits. Advocacy ence for them and us,” Zimmerman said. Research. He is a former member of the groups strive to persuade companies and He acknowledged it is difficult to com- President’s Council of Economic the government to raise car gas mileage press real-world issues into a three-hour Advisers. standards. Finally, all groups consider what game, and the complexity of the interactions Heather Thorne is best for the country and the environ- can be a challenge for students. “We were

DIVIDEND 29 FALL 2005 science, engineering, public health and public policy to discover and disseminate The Erb Family: the leading-edge research required to address the complex issues that matter so much to the health of our planet,” said President Mary Sue Coleman. Shaping the Future The Erbs’ vision and generosity have helped attract additional institute sup- porters. “Thanks to earlier gifts provided by Fred and Barbara Erb,” Dean Robert J. included board membership for The Dolan said, “we have accomplished the Music Hall of Detroit and the Michigan remarkable feat of securing funding for Art Train, and membership in the two new endowed professorships with Women’s Committee of the Cranbrook joint appointments in our schools of Academy of Art and the local chapter of environment and business. The Holcim the National Farm and Garden Club. (U.S.) and Dow Chemical professorships The Erbs’ new gift makes it possible to have allowed us to attract and hire Andy increase the size of the Erb Institute MBA/ Hoffman and Tom Lyon in the area of MS Program—with 52 students, already global sustainable enterprise. They join the largest of its kind—to 75 students. Erb Thomas N. Gladwin, the Max McGraw new $10 million gift from students simultaneously earn master’s Professor of Sustainable Enterprise. Frederick A. Erb, BBA ’47, and degrees from the Ross School and SNRE. Together, the three faculty members are A his wife, Barbara M. Erb, promises The curriculum includes such offerings conducting research on such important to significantly enhance the research and as Systems Thinking for Sustainable issues as clean energy alternatives, human education initiatives of the Frederick A. Enterprise, Competitive Environmental mobility in densely populated cities and and Barbara M. Erb Institute for Global Strategy, Business Practices of Human business strategies for addressing global Sustainable Enterprise, a partnership Rights, Sustainable Manufacturing and climate change.” between the Ross School of Business and Social Institutions for Energy Production. 222 the School Commenting on the vision motivating of Natural their gift, Barbara Erb said, “We want to “If we can raise the next generation of Resources create a new generation of leaders who business leaders to think about environ- and Envi- will consider the big picture of our world ronment and who have the protection of the envi- mental protection as an essential long- (SNRE). ronment as a primary part of their think- term investment — and not a cost to be Building ing and planning.” upon two Fred Erb added, “If we can raise the avoided — we will have taken a major earlier gifts next generation of business leaders to step forward.” of $5 million think about environmental protection as

THE OAKLAND PRESS/DAVID KILKENNEY each, the an essential long-term investment—and 222 Barbara and Frederick Erb latest gift not a cost to be avoided—we will have represents taken a major step forward.” Steve Percy, retired CEO of BP America the largest known commitment to a uni- The integrated three-year MBA/MS and a member of the Erb Institute External versity for interdisciplinary teaching and program has produced more than 90 Advisory Board, said, “Leading global research in the area of global sustainable graduates who work within the business, corporations are facing rapidly changing enterprise— a field that explores how nonprofit and government sectors. These public policy, consumer preferences, organizations throughout the world can leaders focus on a wide range of issues, stakeholder expectations and, most achieve long-term success by harmoniz- including clean technologies, conservation important, competitor strategies in ing economic, environmental and social of biodiversity, corporate responsibility, response to concerns about ecological interests. renewable energy, green design and systems and human well being. They The Erbs, of Birmingham, Michigan, human rights. Program graduates contin- know that to succeed they need the very and Naples, Florida, were born and raised ually draw upon their interdisciplinary best knowledge and talent for integrating in the Detroit area. After earning his BBA training to inspire, develop and imple- these wider concerns. No institution is with honors, Fred Erb promptly bought ment innovative and practical methods better placed than the Erb Institute for into his uncle’s small lumber and coal for cultivating a sustainable future. Global Sustainable Enterprise to provide business. When sold in 1993, the Erb The new gift also will allow the Erb the intellectual power they are seeking.” Lumber Co. was a 45-location diversified Institute to dramatically expand its For more information, visit business with $300 million in annual sales. research efforts. “This generous gift will http://www.erb.umich.edu. His current businesses include Edgemere allow the institute to fund PhD students, Enterprises, a real estate management post-doctoral fellows and important company in Birmingham. research collaborations with faculty in such Barbara’s community service has diverse areas as business, environmental

DIVIDEND 30 FALL 2005 ERB STUDENTS RECEIVE TOP HONORS Senator Proposes Rx for FROM AMERICAN SOCIETY OF LANDSCAPE America’s “Allergy” ARCHITECTS to Global Warming Treaties

wo MBA students from the Erb he Bush Administration must Incentives to businesses and taxpayers T Institute won first place in the com- “overcome its allergy to interna- will help bring about attractive alterna- munication division of the American T tional treaties and make a moon- tives such as hybrid automobiles and Society of Landscape Architects (ASLA) shot-sized investment” to develop tech- cleaner burning fuels, Levin predicted. graduate student competition and one nologies to confront the threat of global “I much prefer incentives over mandates,” of three awards of excellence. warming, Michigan Senator Carl Levin he said. “They are essential to attract Aaron Harris, MBA/MS ’06, and said at a University of Michigan confer- more attention from business Bryan Magnus, MBA/MS ’05, along with ence on climate change. and industry.” Allyson Pumphrey and Zeb Acuff of the The United States must engage with Levin urged audience members to School of Natural Resources and other countries in developing “leap-ahead” speak out on global warming, tax incen- Environment, were recognized for their technologies to reduce the amount of tives and alternative fuel sources. “Don’t project “Building Green for the Future: carbon dioxide emitted into the air. give up on your letter or e-mail writing,” Case Studies of Sustainable Development “We need a massive infusion of support he said. “Policies do change. I believe this in Michigan.” to develop these technologies,” Levin issue is so major that it has to be one of The 108-page, full-color handbook is said. “This is an economic issue, a values the top three issues of the next presiden- intended to demystify “green” develop- issue and an issue about our obligation to tial campaign.” ment practices for real estate developers, leave the Earth as we received it.” Nancy Davis design professionals, and local and state His talk kicked off the conference policymakers. It includes 11 case studies “Reframing the Climate Change Debate: of sustainable development projects Jobs, Trade, Security and a Revised in Michigan that represent residential, Research Agenda” held at the Ross institutional, commercial and educational School June 2-4. facilities, and demonstrate the The economic impact of climate feasibility and benefits of sustainable change is drawing the attention of major green development. corporations, Levin said. Current energy Magnus said the Michigan Department bills and proposals—including the of Environmental Quality already had a Kyoto Treaty, McCain-Lieberman “green” toolkit for developers and suggest- Climate Stewardship bill and existing ed the team create a Michigan handbook CAFE standards—are not enough, showing the benefits of pursuing green Levin said. Due to a lack of federal sup- alternatives for developers and owners. port, American companies are being The students and adviser Larissa enticed to move operations to other Larsen, assistant professor of natural countries instead of finding reasons to resources and environment, are to receive make improvements to existing plants their award at the ASLA meeting in Fort in the United States, he added. Lauderdale in October. “The United States government has become allergic to binding treaties. We need to stick with the process, return to the negotiating table and become partofabroad, international solution,” Levin said. The Kyoto Treaty, an agreement to fight global warming, was ratified and put into effect in February 2005 by 140 nations, with some notable exceptions— the United States and Australia. Signa- tories are legally committed to meeting emissions targets by 2012. Though Levin is not in favor of the Kyoto Treaty, he said he supports an international effort to confront climate change.

DIVIDEND 31 FALL 2005 BUILDING A POWER- Michelle Hanlon PACKED ROSTER: Strong

uilding the faculty at Every B of a great business school is like building a great baseball team. Hire Position only sluggers and you’ll get creamed for lack of pitching. A great outfield can’t fix the errors of a lousy infield. You need strength at every position.

Tom Lyon Christie Nordhielm

Bill Hall, MBA ’67, PhD ’69, right, with David Hares, MBA ’06 Like building a team, building a facul- Tenured scholars are the backbone of Izak Duenyas ty means pursuing your strategy in the every research faculty. When a tenure- off-season, long before the draft and the track slot comes open, you take a calcu- exceeds big trades make headlines. It means lated risk on the best new PhD you can taxable keeping close tabs on the farm leagues find, hoping that in six years he or she income. and the competition, so you know which will build a record of great research and It was not players to watch and which you can teaching worthy of tenure, then go on to only a timely afford to forget. a long and productive career as a leader study, given And it means stick- in the field. Enron’s ing to your vision of Making that bet on a scholar fresh out spectacular the team you want to of graduate school entails risk. And Hanlon fall from grace, but a highly impressive build. You can’t hire was in some ways an unlikely prospect. and useful one. every promising rookie. Born and raised in a farming family Then there were less tangible factors. You have to know what near the crossroads town of Tampico, What sort of teacher would she be? Would you need. Illinois (the birthplace of Ronald Reagan), she be a good fit with her colleagues? “It’s important to she attended two schools outside the aca- Hanlon answered those questions with have a strategy that demic fast track—Eastern Illinois and the talk she gave to faculty members. guides you in the first the University of Washington. But at Russell Lundholm, the Arthur Andersen place,” said Dean Washington she studied with Terry Professor of Accounting and now chair of Robert J. Dolan, a Shevlin, a national figure in tax account- accounting, remembered the impression diehard Boston Red ing. And her dissertation dealt with a she made. Sox fan. “Unless you fascinating and timely question: If a cor- “With tax in particular, a lot of institu- have a strategy in poration reports high earnings to stock- tional knowledge is required to do it Robert J. Dolan place, you’re going to holders and low earnings to the IRS— well,” Lundholm said. “Faced with a make dumb decisions. Enron is a prime example—is it a good room full of accounting professors, there That’s why it’s been so important for us to prospect for high future earnings? are things that other people have thought of that a rookie might not have. But develop and articulate a focused strategy ✷✷✷ that we summarize with the tagline when Michelle was presenting her work, ‘Leading in Thought and Action.’” “Faced with a room full of accounting she was clearly the expert in the room. Here are four behind-the-scenes stories “She was the person we wanted to of that strategy in action. They show how professors, there are things that other hire. We didn’t have a Plan B.” key players were found for each of the people have thought of that a rookie Hanlon had that effect on other schools four types of faculty positions—the tradi- too, among them Wharton, Chicago and tional tenure-track professor, the clinical might not have. But when Michelle was the Massachusetts Institute of Technology. professor, the adjunct professor and the presenting her work, she was clearly In a week, she received seven offers. On endowed chair. And they show, as Dolan one frantic day, from 7 a.m. to 10 p.m., she puts it, that shaping the Ross School faculty the expert in the room. She was the spent nearly every minute on the phone, “is really a complex process of mixing and person we wanted to hire. We didn’t listening as leading figures in her field— matching lots of different people with including Douglas Skinner, then Ross lots of different kinds of skills and experi- have a Plan B.” School accounting chair—made cases for ences. A faculty is not homogeneous. We ✷✷✷ why she should choose their school. need to develop many skills and attributes Her decision came down to intangi- in our students. That being our mission, “Every year, you have, say, 300 PhDs bles—not just the high quality of the you have to bring together, in a synergistic coming out in a given field,” said Izak accounting faculty at Michigan, though way, people with varying talents and skills. Duenyas, associate dean for faculty that was important, but the simple sense Fortunately, Michigan is attractive to many development and research. “And 270 of a good fit. different kinds of people.” of them do not have a very good idea “You know when you’re somewhere of what is an interesting problem. Most and you just have a feeling that this is the top schools converge very quickly on the place you should go?” she said. “I think a The Rookie top 20 or 30 because they’ve worked on lot of people, when they have a lot of The hiring season in the world of interesting problems.” good offers, end up making the decision accounting scholars starts in February, Of course, their attack on the problem like that. Where will I be the most com- when graduating PhD candidates send also has to yield important results. Hanlon fortable? Where will I out fat packets loaded with resumes, passed that test too. She compared the be the most produc- dissertations, recommendations and pub- performances of firms with large book- tive? There’s something lished papers. When the packets went out tax differences against the performance in your gut that tells in 2002, accounting professors at every of firms with small differences, and you this is the right top U.S. business school had no trouble found that the ones with big differences place.” seeing that Michelle Hanlon was going to saw their earnings drop over time. She rank high on everyone’s list. The only also found evidence that investors tend to Russell Lundholm question was who would get her. catch on, at least when book income

DIVIDEND 33 FALL 2005 She said yes, and the bet appears to impacting students in the classroom and In her first year at Ross, the cycle have paid off for both parties. practicing managers. certainly worked. “She’s a star,” said Duenyas. “She’s So Batra, the Sebastian S. Kresge “She hit the ball out of the park,” Batra doing great work in the areas of tax and Professor of Marketing, polled his faculty said. “In our core marketing class, I’ve accounting. She looks at many very inter- colleagues and the deans about an never seen teaching ratings as high as the esting issues. It’s a classic case of one of appointment as a clinical professor. ones she’s gotten.” our areas looking at the fresh PhDs and Clinical professors are so plentiful in saying, ‘Who’s the brightest person com- medical schools that few people associate ing out, and can we attract them?’ And the term with other professional pro- The Designated Hitter that’s what happened.” grams, but they exist in business and When you’re finished hearing the other schools too. The clinical professor story of Bill Hall’s career to date, you —typically given a multi-year contract, feel like you’ve talked to five guys at once. The Specialist but without tenure—delivers experience He trained to be an astronaut, jumped to Often a strong team will develop a gap in the world of practice, thus balancing statistics, earned his PhD, taught business at a key position, and you need to find a the expertise of the tenured research at a string of top universities, ran one very specific sort of player to plug the hole. scholar with the pragmatic outlook of company and then others, then started Early in the decade, this had happened someone fresh from the field. They’re and ran his own, including Procyon in the marketing area. This very strong expected to write, but not necessarily in Technologies, now a leading defense con- area offered some of the most popular purely academic journals. tractor. electives in the school but needed leader- Nordhielm, with a PhD from the As Associate Dean Duenyas put it: “He ship for the required core curriculum. University of Chicago, had strong aca- has credibility beyond the roof.” Given the commitments of faculty demic training. She also brought to the Which made Hall, MBA ’67, PhD ’69, already here, someone new was needed. table five years of experience at the Leo the perfect player to step into the special Then Marketing Chair Rajeev Batra Burnett Co., where she shepherded the role of adjunct professor, an expert prac- learned that Christie Nordhielm, a faculty careers of such pitchmen as Morris the titioner who brings battle-tested skills to member at Northwestern University’s Cat and Ernie Keebler, plus a successful the teaching of a single course. Kellogg Graduate School stint as marketing director for a top of Management, might be Chicago radio station. ✷✷✷ ready to make a move. For a clinical professorship, Batra said, “It’s very simple, I owe the University a It was a major “The crucial thing is years of industry piece of intelligence. experience, contact with executives and lot. I got my education here. I love the Nordhielm, known as a managers, and the ability to bring the superstar teacher of mar- perspective of practitioners into the class- place. [Teaching] is a way of giving keting and advertising, room. But then we also look for a mind- something back to Michigan and to the had developed an inno- set that is somehow scholarly and con- vative system for teach- templative. It can’t be just war stories next generation of business leadership.” ing the marketing core— from the field. There has to be some reflec- ✷✷✷ a framework emphasiz- tion and the ability to write and share.” ing the interrelatedness It was clear that Nordhielm had all this Actually, there are two kinds of of all the decision ele- in spades — plus her credentials as adjuncts at the Ross School. Some are ments in a marketing a superb teacher. So with his colleagues’ expert teachers who concentrate on class- Rajeev Batra strategy. Nordhielm concurrence, Batra extended an offer. room duties to the exclusion of research. had incorporated her For Nordhielm, it was not an easy Others, like Hall, are street-tested execu- approach in a new text- decision. Though born in New England, tives who steal time from their jobs to book, Marketing Management: The Big she had become a devoted Chicagoan. teach their specialties. Picture. (See her Web site, www.bigpic- But her meetings with Dolan and other Hall’s association with Michigan started tureonline.com/.) And in a top-ranked marketing faculty members persuaded with a bachelor of science degree in aero- program known for especially demanding her that the Ross School offer was the space engineering. Through the 1970s students, she won sky-high ratings. In right combination of roles. The clinical he taught in the business school before 2003, Kellogg students voted her “Professor glove had found just the right hand. switching to a highly successful career of the Year.” “It becomes dangerous to think of in business, first with Cummins Engine, So there was no question that research and teaching as a continuum, where he was chief of sales and marketing, Nordhielm would be a great hire. The because really it’s a cycle,” she said. “I then as CEO of a series of companies, question was: What kind of a hire? teach and come up with this framework including several of his own. The Journal of Consumer Research, and it generates these cases and this dis- All the while, he kept close ties to the the most prestigious journal in her field cussion, and that generates ideas among University, joining the school’s Visiting targeted to other academics, had given my colleagues, I hope, to do more Committee. In 2002, Dolan asked Hall her its top award for an article based on research. They go off and do the to chair the committee. Not long after, her dissertation, so no one doubted the research, they come back with results and Eugene Anderson, professor of marketing quality of her research. But, over time, talk to me and I bring that into the class- and associate dean for degree programs, her emphasis seemed to be more on room, just as they do.” suggested that Gautam Ahuja,

DIVIDEND 34 FALL 2005 chair and professor of corporate strategy of business and natural resources. But it trip from Princeton to New York City. and international business, and Allan had only one specialist, Thomas N. “It really shocked me,” he said. Afuah, associate professor of corporate Gladwin, MBA ’71, PhD ’75, the Max “You’re riding through the devastated strategy and international business, have McGraw Professor of Sustainable industrial wasteland that surrounds the a chat with Hall. With his combination Enterprise. If Michigan were to be the Port of New Jersey—all these refineries of teaching and business experience, leader in what was obviously a critical and just enormous ugliness. It was really Anderson said, Hall might make a per- and rising field, the business school the first time I had confronted that type fect adjunct. would need more major scholars. of landscape. That was where concerns So Afuah, Ahuja and Hall met, and Funding soon came from Dow Chemical about protecting the environment really last year Hall began to teach a course he and Holcim Cement to establish two more emerged for me.” designed—the only one of its kind— endowed chairs, with joint appointments in Lyon’s signature work—much of it called “Corporate Intervention.” The business and natural resources. The search undertaken with an Indiana colleague, course addresses a simple but essential for the right people extended over two John Maxwell—has been to explore why question: How can a corporate head- academic years, 2003–04 and 2004–05. some companies do right by the environ- quarters add value to the operations of a The school was seeking two professors, ment when every economic incentive business unit in the field? After the man- one to teach mostly in the business seems to tell them not to. He has found aging director of a leading consulting school, the other to teach mostly in natu- that some corporations, defying conven- firm sat in on one of the class discus- ral resources, but with strong interaction tional wisdom, are going green to stave sions, he hired two of Hall’s students and around multidisciplinary research. At off regulation, or at least to retain a voice said the class should be offered in every the Ross School, it was announced as a in the regulatory process. Others gain an business school in the world. school-wide search. The department that advantage over competitors by gaining “It turned out to be an amazing fit,” made the best case would hold the endowed expertise in sustainable technologies and said Ahuja. “He’s done extremely well. chair position for the first five years. methods. The students love him.” That was when Francine Lafontaine, Lyon concluded that the Ross School Hall refuses to accept a salary for his chair and professor of business economics was offering ideal circumstances for teaching. And he’s assisting in the devel- and public policy, thought of Tom Lyon, pursuing his research, for influencing opment of a second course, also the first a faculty member at Indiana University a cadre of like-minded students in the of its kind, titled “The Business of then working at Resources for the Future, Erb Institute and for building the leading Biology.” a think tank in Washington, D.C. sustainable enterprise program. He “It’s very simple,” he said. “I owe the Lafontaine had met Lyon years earlier. accepted, becoming the Dow Professor University a lot. I got my education here. She knew his credentials—BS in engineer- of Sustainable Science, Technology and I love the place. It’s a way of giving ing from Princeton, PhD in economics Commerce. (The parallel search led to something back to Michigan and to the from Stanford, an expert on the effects the appointment of another endowed next generation of business leadership.” of government regulation on corporate professor, Andrew Hoffman, now the behavior and a pioneer in the study of Holcim (U.S.) Professor of Sustainable sustainable commerce. Few people could Enterprise.) The All-Star match his record. “I saw this job and it was like some- Union Carbide in Bhopal, India; Exxon “Even in a world market,” she said, body made it up for me and dropped it in off the coast of Alaska; Metropolitan “there are not so many great pitchers.” my lap,” Lyon said. “I am part of a Edison at Three Mile Island, Pennsylvania. But Lyon had been at Indiana for community of people who are pushing These and other disastrous encounters years. Would he move? Here the aca- the envelope, thinking new thoughts, between corporations and the natural demic grapevine helped. staying on top of the latest technology world launched an inexorable movement “We all have our networks,” Lafontaine and trying to do the right thing for the toward the field now called sustainable said. “If I decided that I wanted to move, environment, for the planet and for peo- enterprise, which seeks ways for corpora- I would tell friends in a number of ple generally. The student body is in a tions to act as responsible stewards of the places, they would tell friends in other sense the biggest draw: They have all the environment. places and the word would be out. Tom great attributes of MBA students— The business school was an early was not in that category, except that entrepreneurial, effective, articulate, adopter, launching the Corporate I knew he was in his second year of hard-working, smart—but they also have Environmental Management Program visiting in Washington, which started a broader commitment to make the (CEMP) in the early 1990s. With major to suggest that maybe he wasn’t sure he world a better place. They’re just a cool endowments from Frederick A. Erb, wanted to go back.” bunch of people; I enjoy hanging around BBA ’47, and his wife She called Lyon and described the with them. Barbara starting in 1995, endowed chair. She had been right. He “Pretty much every day I have some CEMP became the core said he would think about it. little experience that makes me say, ‘I am component of the Erb Lyon had grown up as a Boy Scout in the luckiest person in the world.’” Institute for Global the Shenandoah Valley of Virginia, a Sustainable Enterprise, a place of great natural beauty where the James Tobin joint effort of the schools industrial age has made less of a mark than elsewhere. He loved the outdoors. Francine Lafontaine Then in college he often made the train

DIVIDEND 35 FALL 2005 technology SMALL-TECH WORLD BUBBLES WITH BUSINESS POTENTIAL

As executive director of the Univer- as “one of 50 companies to watch in sity’s Office of Technology Transfer, Michigan” in April by the Michigan Kenneth J. Nisbet, MBA ’76, works with Celebrates Small Business Team, which engineers and scientists to bring new includes the Michigan Economic products to market. Other Ross School Development Corp., Michigan Small alumni who are active in the small-tech Business & Technology Development sector include Patti Glaza, MBA ’00, Centers, Small Business Association of n its ever-expanding effort to push Thomas Kinnear, PhD ’72, Rick Snyder, Michigan, U.S. Small Business Adminis- the entrepreneurial envelope, the MBA ’79, Maria Thompson, MBA ’88, tration and the Edward Lowe Foundation. Samuel Zell & Robert H. Lurie and Donn Tice, MBA ’82. In 2005, T/J Tech- nologies’ $14 million Institute for Entrepreneurial Studies Maria Thompson, MBA ’88 co-hosted the University of Michi- proposal to NASA for I T/J Technologies Expands the development of gan’s Fifth Annual Emerging Industry Symposium, “The Business Reality of Thompson, president and CEO of Ann nanoscale materials for Micro and Nano Technologies,” this spring. Arbor-based T/J Technologies, and two high-energy batteries Participants—scientists, entrepreneurs Michigan graduates, husband Levi was selected for award. and venture capitalists —talked about Thompson Jr., who earned a PhD in T/J also received a business opportunities emerging from chemical engineering, and Michael $5.25 million contract breakthroughs on a microscopic scale Wixom, who holds a doctorate in physi- to develop high-power that allow engineers to create new mate- cal chemistry, landed their firm’s first batteries for hybrid rials at the molecular level. contract to manufacture ultra-hard coat- vehicles for the Army. University of Michigan scientists are ings in 1991, years before nanotechnolo- T/J Technologies using nanotechnology to fabricate mate- gy became a buzzword. received several other rials and new devices that will make it T/J Technologies specializes in the contracts and grants possible to identify and treat disease in design, development and commercializa- STEVE KUZMA individual cells, nanoparticles that can tion of nanostructured materials for lithi- remove toxic metals from groundwater um-ion batteries and fuel cells. It holds and nanofilms that will help power more seven patents, has many more pending efficient fuel cells. and has won more than 60 research and Buzzwords development contracts. ano: Derived from the Greek “We also were working on word for “dwarf” and indicates alternative energy before it N one-billionth of something. became a hot topic. Now we’re getting calls from all over the Nanotechnology: The creation and world from companies interested use of objects at the nanoscale, up in materials development,” notes to 100 nanometers in size. Thompson. T/J Technologies, with MEMS—short for microelectro- 20 employees, is expanding, hiring mechanical systems: Machines with more chemists, chemical engi- moving parts smaller than a human hair neers, materials scientists and that contain both electrical and mechani- electrochemists to join what she cal components on silicon, also referred says is already “a strong R & D to as microsystems, microstructures and and management team.” microstructure technology. T/J Technologies was identified Micro: Short for micron, one-millionth of Preprogrammed dendrimer nano- ameter. Also can refer to MEMS and/or particles can transform harmful microsystems, a microscale machine that chemical and biological agents into can sense information from the environ- benign substances. ment and act on it.

COURTESY OF MICHIGAN CENTER Small-tech: Refers to technology at the FOR BIOLOGIC NANOTECHNOLOGY micron or sub-micron level, including nanotechnology, MEMS and microsystems.

DIVIDEND 36 FALL 2005 nanotechnology

occasionally spend snow days early investor in a number of companies, at T/J Technologies. Both girls including Sensicore and Small Times are good in math and science, Media, is a leader in bringing small-tech reports Thompson. “I tell them products to the global marketplace. ‘be whatever you want to be, but Ardesta also provides business and tech- whatever you do, make sure you nical resources to support these companies. own something.’” Avalon Investments, another venture An entrepreneurial studies capital company founded by Snyder, course taught by Andrew introduced Glaza to entrepreneurship. COURTESY OF UNIVERSITY OF MICHIGAN Lawlor and corporate strat- She interned as a business analyst at egy courses have helped in Avalon and went on to serve as director her career, Thompson says, of business development, marketing and “The business school didn’t operations for HealthMedia Inc., a firm give me all the answers. that delivers customized health manage- What the business school taught ment programs. me was how to find answers. After start- Patti Glaza joined Small Times Media, from the Department of Energy, NASA, ing the business, I wished I had paid publisher of Small Times magazine, as Department of Defense and National more attention in a few areas, like vice president of finance in 2002 and Science Foundation for fuel cell, battery accounting. But I had made friends in today is CEO. Small Times’ goal is to help and other applications and was named a accounting and could call on them,” says the small-tech industry grow by providing certified alternative energy technology Thompson. industry leaders the critical business infor- business by the state of Michigan in 2004. The school had not yet formalized mation needed to make smart decisions. In June, Thompson was honored by action-based learning when Thompson As researchers and universities spin Minority Enterprise magazine as one of was a student. However, as an alumnus, off new micro and nanotechnologies, 50 influential minorities. Thompson Thompson supports opportunities for more small-tech firms will be looking for spends her days talking with customers, students to gain real-world experience by market-savvy, seasoned executives like building alliances with partners, working sponsoring Marcel Gani summer interns Donn Tice, CEO of Nano-Tex, to help on strategy, going over the financials to through the Zell Lurie Institute. The the sector grow, Glaza predicts. Tice, for- make sure they program pairs students with start-up merly CEO of Winterland, also managed make sense and and venture capital firms. Procter & Gamble’s $1 billion Folgers bringing the Coffee business and introduced category- “message of the creating new products for company’s vision Supporting Small Tech Dreyer’s and Edy’s Grand to the troops,” Rick Snyder, founder and CEO Ice Cream, including the notes Thompson, of Ardesta LLC and chairman of industry’s first “light” who says not Gateway Inc., did not attend the ice cream and packaged being a scientist symposium, but the influ- frozen yogurt. Battery technology or engineer is an ence of the Ross School’s 2003 testing at T/J advantage when Alumni Entrepreneur of the Technologies talking with cus- Year was evident. Ardesta, an tomers. “I can only go so deep into the science. I focus Nanoparticles, seen here joined by DNA on the benefits and explain the value of strands, can be programmed to identify and what we are doing.” deliver medication to specific cells. Thompson, who earned an undergraduate degree in fine arts and commer- COURTESY OF MICHIGAN cial design, worked as an industrial CENTER FOR BIOLOGIC TECHNOLOGY designer at Steelcase before earning an MBA in marketing. “Creativity is very helpful in running a small business. You don’t have the resources of the big companies. You have to think outside the box,” says Thompson. T/J Technologies is a family oriented company. “Many of our employees start with us as graduate students. They get married and have children. It’s fun to watch people grow,” says Thompson, whose own daughters Marissa, 11, and Sabrina, 8, are among the children who

DIVIDEND 37 FALL 2005 nanotechnology

Smart surfaces respond to various substances, attracting or repelling them according to preprogrammed instructions.

COURTESY OF JOERG LAHANN

“Matching business skills with scientists is critical. A person like Donn is perfect. He is a branding expert who understands a leading technology and knows how to take it to market. His skill set is unique,” says Glaza, who tracks trends in the nanotechnology industry. Glaza, Thompson and Kinnear, Michigan Moves the Eugene Applebaum Professor of Entrepreneurial Studies and director of the Zell Lurie Institute, were among to 5th Place in National the Ross School alumni who spoke at the emerging industry symposium sponsored by the Zell Lurie Institute, the University Small-tech Rankings of Michigan Office of Technology Transfer and Michigan Small Tech Association. he state of Michigan’s goal is to Although “Nanotechnology is become a leader in nanotechnology, Michigan’s micro not a pipe dream any T a field that the federal government and nanotech more,” says Kinnear, has identified as potentially socially companies a Michigan Early Stage transforming as antibiotics and inte- attracted less Venture Investment grated circuits. In Small Times’ ranking than 5 percent of Corp. director. “Indeed, of hot spots for micro and nanotech small-tech ven- nanotechnology firms companies, Michigan jumped from ture capital and incubated at the eighth place in 2004 to fifth place (tying comprised about University are operating with Texas) this year. 5percent of the as real companies in Small Times collects information total number of Patti Glaza, materials science and from a number of primary and second- micro- and nano- MBA ’00 the biological sciences. ary sources, including the National tech-related busi- NanoCerox, a company Science Foundation, National Institutes nesses, the state that makes ceramic oxide of Health, NASA, U.S. Census Bureau, did better in both areas than the materials, is an example U.S. Patent and Trademark Office and majority of states. of the former. NanoBio, the Bureau of Labor Statistics, and Patents issued to the University of also incubated at the ranks each state in a variety of cate- Michigan, Western Michigan University U-M, is a biopharmaceu- gories, including the amount of funding and General Motors are improving the tical company that devel- spent on research, the number of small- state’s prospects in nanotechnology, ops and commercializes tech businesses in the state, availability as are companies like T/J Technologies, antibacterial and antiviral of venture capital, the size and skills a research and development company therapies based on pro- of the state’s workforce, and its cost of that specializes in energy materials, prietary nanoemulsion living. The top five small-tech locations and Sensicore, a firm that makes sensor Thomas technology. Both are are California, Massachusetts, New devices to test water for chemicals. Kinnear, involved with the Zell Mexico, New York, and Michigan and The microsystem used in the Sensicore PhD ’72 Lurie Institute.” Texas. wand was developed and licensed by the University of Michigan. Mary Jo Frank

DIVIDEND 38 FALL 2005 The Latest Fashion Statement

rom colorful iPods to an “intelli- gent shoe” with a built-in micro- processor capable of performing

five million calculations per second PHOTOS COURTESY OF NANO-TEX Fin response to the wearer’s environment, technology is today’s ultimate expression of fashion—says Nano-Tex In the textile industry, nanotechnology Nano-Tex, with head- Inc. CEO Donn Tice, MBA ’82. has to be low cost, easy to apply and good quarters in California Fashion? Yes, fashion. Tice’s firm uses for the product, said Tice. He attributes and regional offices in nanotechnology to transform the molec- Nano-Tex’s success to a large U.S. market, Greensboro, North Donn Tice, MBA ’82 ular structures of fabrics. Nano-Tex, the a scalable business model with a global Carolina, Europe and leader in creating “performance fabrics,” is reach and new technologies that are chang- Asia, has a sales force of revolutionizing the apparel industry with ing the market, even eliminating static 24 and works with 80 licensed mills world- garments that are spill resistant, durable, cling. In December, Nano-Tex introduced wide. To protect its intellectual property, breathable and have a natural feel, said the industry’s first anti-static finish. the firm builds as much as it can into the Tice, speaking at the University of Michi- “Nano-Tex’s mission is to become the Nano-Tex formula rather than the process. gan’s Fifth Annual Emerging Industry dominate provider of performance inno- Tice, who previously was CEO of Symposium focusing on nanotechnology. vation in consumer textiles,” said Tice, Winterland and at one time managed who joined Nano-Tex in 2003 and spends Procter & Gamble’s $1 billion Folgers much of his time these days calling on Coffee business, sees parallels between Donn Tice greets participants at the brand manufacturers and retailers. Nano- successful companies in the early stage of University’s Fifth Annual Emerging Industry Tex sells products to an end-use mar- the Internet and firms such as Nano-Tex. Symposium. ket—primarily the apparel industry and Successful nanotechnology firms are taking interior furnishings. One hundred retail- advantage of changes in physical proper- BELOW Nano-Tex’s Amish Waland uses a ers have adopted Nano-Tex’s nano-treat- ties at the nanoscale to enable new and spectraphotometer to measure fabric color. ments. Twenty million Nano-Tex-treated desirable performance, said Tice, who garments were sold in 2004; most carried intentionally dumped water on himself the Nano-Tex brandmark on a hang tag. during his talk, telling the audience not to Nano-Tex plans to expand to other fab- worry. His Nano-Tex-treated suit, shirt and rics and projects an annual growth in tie would dry quickly and look sharp. MARTIN VLOET sales of 30 percent to 50 percent. Mary Jo Frank The firm’s vision is to change people’s lives. “Procter & Gamble already has noticed that consumers who have pur- chased clothing with our stain-resistant technology are using fewer laundry products because they are doing less laundry,” Tice said. Burlington Industries, the world’s leading textile producer, was Nano-Tex’s first strategic partner and sole source of seed capital from 1998 to 2003. Burling- ton has since been sold to W. L. Ross. Nano-Tex also works with Norwest Ventures, Masters Nanotechnology, Howard Hughes Medical Institute and

PHOTO COURTESY OF NANO-TEX Firelake Technology.

DIVIDEND 39 FALL 2005 nanotechnology Pryor Family and William Hale, was created in 1984 to provide a forum for students to test their business concepts. The late Professor Clayton Hale, William Hale’s father, was one of the school’s ear- liest faculty practitioners. Clayton Hale founded and operated a successful insurance company in Cleveland, while com- muting to Ann Arbor two days a week to teach at the school. William Hale judges the competition each year. In April, Incept BioSystems won several prizes at the Rice University Business nurturing entrepreneurshipSTEVE KUZMA

niversity of Michigan Left to right, Michael Crowley and researchers Plan Competition: the Finger Interests researchers have developed a Gary Smith, associate professor of obstetrics and Second Runner-up prize of $7,500, the new in vitro fertilization (IVF) gynecology at the Medical School and director Cogene BioTech Ventures Life Sciences device platform that closely of the Assisted Reproductive Technologies Award of $2,000 for the best life science mimics the human reproduc- Laboratory, and Shuichi Takayama, assistant business plan, $2,000 for the overall best U professor of biomedical engineering and macro- tive system and could revolutionize how written plan and $750 in the Austin cell tissues are grown and analyzed, thus molecular science and engineering, founded Ventures Elevator Pitch competition. potentially increasing the success rate Incept BioSystems. Participating in business plan and ele- of conception while reducing multiple vator pitch competitions forces entrepre- births common with IVF. This break- for other potential applications for the neurs to be efficient in both writing and through—a combination of microfluidic technology, explains Crowley. presenting, Crowley says. Winning those technology and nanotechnology—is “Charlie and I can’t say enough good competitions also brings in cash to take a closer to market, thanks to a coordinated things about the Tech Transfer Office. business to the next level. effort that includes MBA entrepreneurs The staff are so open, knowledgeable and “Incept BioSystems’ wins are the Michael Crowley and Charlie Covert, committed to our success,” says Crowley. culmination of a total team effort,” says both members of the class of 2005. Covert, who worked at Saint Paul Crowley, who credits staff at the Zell They are among scores of students and Venture Capital before coming to the Ross Lurie Institute for helping with the Incept recent graduates who have benefited from School, and Crowley met shortly after BioSystems business plan and coaching a special partnership between the U-M arriving in Ann Arbor. Crowley, as a co- the team. In 2004, the institute awarded Tech Transfer Office and the Samuel Zell founder of several other start-ups, helped Incept BioSystems’ founders a $10,000 & Robert H. Lurie Institute for Entrepre- raise money for each venture, including Business Integration Grant to formalize neurial Studies that introduces students to Bostech Corp., a high-growth integration their business concept and inventors and coaches students on how to software firm located in Indianapolis. prepare for a commercial launch. write and present business plans. Stu- Together, Crowley and Covert have In addition to their work with Incept dents serve as advisers to start-ups; some, successfully pitched Incept BioSystems BioSystems, as students in Associate including Crowley, become investors. and its technology at some of the nation’s Professor of Finance David Brophy’s The MBA students met the two inven- most prestigious business competitions. Financing Research Commercialization tors of the in vitro fertilization device Incept BioSystems won first place— practicum, Crowley and Covert helped platform through the U-M Tech Transfer $35,000 in funding and legal services— write the business plan for NanoCure, a Office in 2003. By early in the 5th annual Jungle Business Plan nanotechnology for drug delivery and Incept BioSystem’s 2005, Crowley and the Challenge sponsored by Jungle Media imaging developed by physician James R. in vitro fertilization researchers had founded Group and Fenwick & West LLP. The Baker Jr., director of the Center for Bio- device platform is Incept BioSystems, competition encourages graduate students logical Nanotechnology at the University. shown here under the which could bring its in business management to pursue entre- Crowley also screens applicant compa- microscope. cell culture products to preneurial ventures and develop high- nies for the school’s Michigan Growth market within 18 months growth businesses. Capital Symposium and advises the Ross and its first full family of Earlier this year, Crowley and Covert School’s Nanotechnology Commercial- products to solve fertili- won $3,000 for the Best Presentation ization Group, which he, Covert and ty problems in two to Award, $3,000 for the Best Written Plan Dave Repp, MBA ’05, founded to build STEVE KUZMA three years. Fertility is and the $10,000 Pryor Award for Best a network of nanotech researchers and a fast-growing, high- Business Plan at Michigan’s 22nd Pryor- to evaluate the business opportunities margin market that can Hale Business Plan Competition. The arising from their innovations. serve as a springboard competition, sponsored by the Millard

DIVIDEND 40 FALL 2005 nanotechnology nanotechnology breakthroughs biz skills market solutions

eople buy solutions, not tech- California; Thomas S. Porter, MBA ’67, appointed executive direc- nology, says Kenneth J. Nisbet, Trillium Ventures of Ann Arbor and tor of U-M Tech Transfer. MBA ’76, who leads the Univer- executive-in-residence at the Zell Lurie “Tech transfer success sity of Michigan’s efforts to Institute; Charles Salley, MBA ’76, CEO starts with tremendous P bring cutting-edge technologies of CAS Ventures of Birmingham, technology,” Nisbet says. to market. Michigan; and Rick Snyder, MBA ’79, “Our recent achievements “Excellence in technology transfer chairman of Gateway Inc. and CEO of also can be attributed to requires a keen understanding of markets Ardesta, also of Ann Arbor. support from University in which our discoveries can provide a Through TechStart, an internship leadership, our effective, substantial advantage,” says Nisbet. program run by U-M Tech Transfer professional tech transfer As executive director of University of with support from the Zell Lurie staff and greater Ann Michigan Tech Transfer, Nisbet oversees Institute, graduate students in business, Arbor’s growing venture Kenneth J. Nisbet, commercialization of University-devel- engineering, medicine, law, information capital and high-tech MBA ’76 oped intellectual property through the science and the liberal arts work in teams community. And, of licensing of technologies to established to boost commercialization of U-M course, U-M has a fantastic advantage businesses and new start-ups. The U-M technologies. with the multitude of outstanding Trushar Naik, MBA ’06, MD ’06, schools and colleges, including the Ross and Jay Ng, MBA ’06, were among seven School of Business.” TechStart interns who this summer worked Nisbet says the business school taught on six U-M tech transfer projects, includ- him how to think creatively and work ing a to-be-named microfluidics firm. MARTIN VLOET effectively within teams. His knowledge “TechStart provides our start-ups with of finance, engineering and marketing superb business planning and consulting has complemented his work in tech services while the students learn first- transfer. “I really enjoyed my early busi- hand how businesses are launched and ness strategy course taught by LaRue funded,” Nisbet says. “The interns help Hosmer, professor emeritus of corporate young companies with various aspects of strategy. Professor Hosmer was right: business planning, from evaluating how Small businesses are a driving force for technologies map to market needs to innovation.” Left, Kenneth Nisbet and Donn Tice developing marketing and financing Nisbet encourages entrepreneurs to plans. In the process, students learn consider licensing technology or assisting Tech Transfer Office is comprised of about nanotechnology and other high- U-M’s new business development efforts specialists in licensing, business develop- tech career opportunities, which we hope as a way to tap into nanotechnology ment and law. they will consider upon graduation.” and other technologies coming out of In 2004, U-M Tech Transfer launched Nisbet, who earned a bachelor’s degree the University. “Starting a business using 13 new business start-ups, including sev- in mechanical engineering from the new technology can be uniquely satisfy- eral based on nanotechnology; negotiated University, began his career as an engi- ing, but the focus has to be on market 73 new license and option agreements; neer at Ford Motor Co. After taking need. Nanotechnology can impact so and earned $11.7 million in license rev- some business courses in the evening at many fields — healthcare, security, mate- enues, most of which was reinvested in UM–Dearborn, Nisbet transferred to the rials and the environment to name a few. research and education. Under Nisbet’s Ann Arbor campus, where he attended Ultimately the market will determine the leadership, U-M has achieved perform- day classes and worked nights. Over the winners,” says Nisbet. ance gains and the reputation as having years, Nisbet worked for The Spiratex “I would love to hear from other Ross one of the leading tech transfer offices in Co., a small custom thermoplastic extru- School alumni. We welcome suggestions thenation. sion company, and larger firms, including and volunteers to more effectively trans- Other Ross School of Business alumni Digital Equipment Corp. and Nortel, fer our U-M technologies to market,” and students also play key roles in the from which he spun out MemoryBank adds Nisbet, who can be reached at University’s commercialization efforts. Inc., a mass-storage subsystems business. [email protected]. Five Ross School alumni serve on the Nisbet learned about tech transfer while To read more about technology U-M Technology Transfer National at Trinova’s Corporate Technologies transfer at the University, visit www.tech- Advisory Board: Thomas Kinnear, PhD Laboratory, where he directed technology transfer.umich.edu. ’72, executive director of the Samuel Zell development and in-licensing for its & Robert H. Lurie Institute; Kenneth electronics businesses. He joined the Pelowski, MBA ’87, managing director, University in 1996 as director of new Pinnacle Ventures LLC of Menlo Park, business development and in 2001 was

DIVIDEND 41 FALL 2005

ALUMNI ACTIVITIES

Chicago The Alumni Club of Chicago hosted its Annual Spring Business Conference, which focused on offshoring, on June 2 at the Sears Tower Conference Center. Robert Kennedy, executive director of the William Davidson Institute and professor of business administration, opened the discussion with his insights on the evolu- tion and future of offshoring. A panel of business leaders then discussed the phenomenon, including how offshoring is affecting their businesses. For more about the Chicago Club, contact Greg Bolino, MBA ’92, at [email protected].

INDIA—Left to right, Ashish Pabalkar, MBA ’06, Bharat Patel, MBA ’69, Angus Simmons, Ranjit Shah, MBA ’81, and Rajiv Sengupta, MBA ’07, in Mumbai. India Minnesota Ross School alumni entertained 45 Al Cotrone, director of the Office of students newly admitted to the University Career Development at the Ross School, at a Go Blue “send off” on May 2 in spoke to almost 50 alumni from the Mumbai. Among the others who attended Minneapolis-St. Paul area on May 5. In were Ashish Pabalkar, MBA ’06, and his presentation titled “Taking Charge of Angus Simmons, U.S. Consul General in Networking: The Art of the Self-Directed Mumbai and guest of honor. Simmons Career Search,” he talked about the steps talked about ways to improve relations required to turn the search for career CHICAGO—Left to right, David Stowe, between the United States and India and satisfaction into an active, directed and MBA ’95, Omer Abdullah, MBA ’95, and how to handle visa-related issues, says focused program of identifying what Rajiv Advani, MBA ’94, were among 55 Bharat Patel, MBA ’69, who reports, should be next on your career path. He who attended the conference. “All in all, it was a wonderful event.” also discussed the fundamentals of net- For more about alumni activities in working to the next career opportunity. India, contact Atul Bahadur, MBA ’87, For more about the Minnesota Alumni Germany at [email protected]. Club, contact Tom Yu, MBA ’04, at More than 50 alumni and friends [email protected]. attended the Ross Alumni Club of Germany meeting held May 21 in INDONESIA—Left to right, Andreas Bunanta, Frankfurt. Tilman Engel, general manager MBA ’93, David Yaory, MBA ’00, and Rizal of Frankfurt Galaxy, spoke to the group Matondang, MBA ’01, were among Ross School about “American Football and alumni who met with Linda Lim, professor of the Team Frankfurt Galaxy from an corporate strategy and international business, Economic Perspective.” Gunter Dufey, when she visited Jakarta in March. Lim also met professor emeritus of corporate strategy with Eddy Tamboto, MBA ’99, Ardy Mu’awin, and international business and of finance, MBA ’04, and Herianto Pribadi, MBA ’99. shared news about the Ross School. Thomas Eufinger, executive director of the Federal Financial Supervisory 222 Authority, talked about “Insider Dealing in Germany.” After lunch, the group The Ross School of Business has visited the exhibition Wunschwelten: numerous clubs around the world. Romantik der Gegenwart (Ideal Worlds: New Romanticism in Contemporary Arts) To learn more about the club in your at the Schirn Kunsthalle. For more about area, visit www.bus.umich.edu/ alumni activities in Germany, contact Andreas Kirschkamp, MBA and EX ’00, alumnicommunity/alumniclubs at [email protected]. 222

DIVIDEND 43 FALL 2005 ALUMNI ACTIVITIES Shanghai Ross School Alumni organized a welcome event for 15 newly admitted students and their spouses on March 26. Alumni shared accounts of various courses and tips about enjoying life in Ann Arbor and talked about the Ross School’s emphasis on cooperation and teamwork. For more about alumni activities in Shanghai, contact Daniell Chen, MBA ’00, at [email protected].

SHANGHAI—Left to right, Florian Wang, MBA ’03, Jie Liu, MBA ’02, Yiren Dai, MBA ’02, Jerry Liu, MBA ’02, Haifei Li, MBA ’02, James Yu, MBA ’01, Annie Lu, MBA ’01, Linda Lei, MBA ’04, and Daniell Chen, MBA ’00.

NEW YORK —Team members, left to right, front row, Steven Rodriguez, LSA ’02, MAcc ’03, Jay Lurie, BBA ’02, Mike Cuoco, BBA ’00, Loren Berger, BBA ’02, Alfredo Bequillard, Engin ’01; middle row, Emily Kramer, BBA ’04, Cynthia Kurzweil, BBA ’04; back row, Amish Shah, BBA ’04, Cecil Shepherd, MBA ’00, David Post, LSA ’94, broadcast journalist Liz Cho, Logan Welde, and Dan Josephs, Engin ’00.

New York represented on the coed team that plays Wolverine bats came alive on Sunday more than 50 games during its regular evenings this summer as Michigan’s New season, which runs from mid-April to York City Alumni Softball Team stepped early September. Among the alumni up to the plate on Field 4 of the Great Lawn teams the Wolverines play are the at Central Park. The field is between 82nd University of Chicago, Cornell, Duke, and 83rd streets and is one of the most Georgetown, Massachusetts Institute of SOUTHEAST MICHIGAN — George J. Siedel, coveted spots to play softball in New York Technology, Ohio State, University of the Williamson Family Professor of Business City, reports team captain Michael Cuoco, Pennsylvania, University of California Administration and professor of business law, BBA ’00, who founded the team with the and the University of Virginia. For more lectured about negotiations at the May 18 help of Cecil Shepherd, MBA ’00. Ross about alumni activities in New York, con- meeting of the Southeast Michigan Club. School MBA and BBA graduates are well tact Shepherd at [email protected]. Pictured here, left to right, are Southeast Michigan Ross School Alumni Club Board members Peter Scott, MBA ’94, Larry Saleski, MBA ’96, David Giles, MBA ’01, Sanjeev Mirle, MBA ’02, Thomas Saur, MBA ’86, former club president Steve Morris and Catherine Farley, BBA ’92. Other board members not in the photograph are Matthew Schuster, MBA ’00, and Carmen Saleh-Fakhoury, MBA ’00. For more information about alumni activities in the Detroit area, contact David Giles at [email protected].

SINGAPORE—Alumni, newly admitted Ross ’96, manager, Deloitte Consulting, and presi- School students and Professor Linda Lim dent of the U-M Alumni Association of attended a reception held on March 21 at the Singapore. For more about alumni activities in American Club in Singapore. Among those who Singapore, contact Lui at [email protected]. attended were, left to right: Richard Lui, MBA ABOVE Choon-Peng Ng, MBA ’04, product ’01, producer, Channel News Asia, Singapore manager, Scios Inc.; Priscilla Rogers, associate and Ross School MBA representative to the professor of business communication; and K. J. University of Michigan Alumni Association; Tan, MBA ’04, managing director, Trelleborg Linda Lim, professor of corporate strategy and Engineered Systems. international business; and Dennis Teo, MBA

DIVIDEND 44 FALL 2005 $750 million worth of capital. Its investment strategy includes a focus on companies in diverse industries serving fast-growing, under-served ethnic mar- Class Notes kets. He also is a principal of TSG Ventures LP, a private equity investment Stephen M. Ross, BBA ’62 is awarded annually to recognize an out- firm that specializes in financing minority founder and chief executive of The standing business person. Friedt, who entrepreneurs. Cleveland is treasurer of Related Companies, was presented the graduated from Cleary in 1913, became the board of directors of the National Harry B. Helmsley Distinguished New an assistant personal secretary to Henry Conference for Community and Justice, Yorker award on January 20 by the Ford and went on to forge a successful a member of the board of directors of Real Estate career in the metal-finishing industry. the Business Council of Fairfield County, Board of the Robert A. Toigo Foundation and New York. Cleveland Christophe, MBA ’67 the Stamford Health System. He also is Steve over- was awarded the Walter Wheeler Jr. a member of the visiting committee of sees a real Leadership Award on December 1, 2004, the University of Michigan. In his honor, estate port- by the Business Council of Fairfield the Business Council of Fairfield County folio worth County (Connecticut). Cleveland is man- will make a donation to the Stamford more than aging partner at TSG Capital Group in Health System and Waterside School $12 billion Stamford, Connecticut, a private equity in Stamford. and handles investment firm that manages about more than 250,000 units across the U.S. He also is chairman and founder of CharterMac, one of the nation’s leading full-service real estate finance companies. On June Vern Terpstra Represents 15, he was awarded the National Housing Conference 2005 Housing Person of the Year Award at the National U-M at Korea University’s Building Museum in Washington, D.C. He is a member of the executive commit- 100th Anniversary Celebration tee and the board of directors of the Real Estate Board of New York, as well as a member of the boards of the Guggen- ern Terpstra, BBA ’50, MBA ’51, heim Museum and the Juvenile Diabetes PhD ’65, professor emeritus of Research Foundation, and is a trustee of V international business at the the National Building Museum and the Stephen M. Ross School of Business, Jackie Robinson Foundation. Last year represented the University of Michigan he endowed the Stephen M. Ross School and President Mary Sue Coleman at of Business at the University of Michigan. Korea University’s Centennial Anni- versary Commemoration held in Seoul Lee E. Benz, BBA ’67, MBA ’70 on May 4–5. is president of Benz Insurance Agency, an Korea University President Yoon-Dae independent, family owned business serv- Euh, PhD ’78, hosted the three-day cele- ing Ann Arbor for more than 70 years. In bration that included an academic forum April, Cleary University awarded him the focusing on global management and 2004 Glenn H. Friedt Sr. Medal of Honor education, campus tours, a tree-planting Vern Terpstra participates in the tree-planting for “upholding a tradition of excellence ceremony and banquets, including a din- ceremony commemorating the 100th anniver- begun by his father in 1931 and for his ner hosted by Seoul’s mayor. sary of the founding of Korea University. contributions and service accruing to Michigan was one of 94 universities the benefit of his community, state and from around the world to participate in visiting professor for institutions in the nation.” Lee also has been involved in the festivities. The trip was personally Congo, China, Indonesia, England, the the real estate industry for more than 30 significant, Terpstra said, because Yoon- Netherlands and other countries on three years and is active in numerous commu- Dae Euh is his former student, one of continents. nity organizations. He also sits on the the many on six continents with whom Terpstra received the Significant board of Republic Bancorp and helped to Terpstra keeps in contact. Contribution to Global Marketing found Republic Bank’s third location in Terpstra joined the business school in Research Award from the American Ann Arbor in 1986. The Glenn H. Friedt 1966 and retired in 1992. He served as Marketing Association Global Marketing Sr. Medal of Honor was established in chair of International Business from Special Interest Group in 2004. 1988 in recognition of the Friedt family’s 1977 to 1987. He has written more than support for Cleary University. The medal 55 books and articles and has served as a Fred Wessells

DIVIDEND 45 FALL 2005 Pioneer Creates a Legacy in Reds and Whites

t’s not the answer that’s impor- more intriguing than his engineering tant. It’s the questions that lead work at Union Carbide when the young ‘‘I us. How we frame the question Esterer discovered the work of Konstantin leads us to learn.” Frank, the renowned Ukrainian scientist Socratic words like these aren’t imme- making great wines in the Finger Lakes diately associated with winemaking, but Region of New York. sitting in his tasting room and listening Although northeastern Ohio grew the to Arnulf Esterer, MBA ’55, owner and hardy hybrid Concord grape, “Dr. Frank winemaker at Markko Vineyards near insisted we learn to grow the noble, vini- the Ohio and Pennsylvania borders on fera varietals of Europe —Chardonnay, JOEL HILL the shores of Lake Erie, the pairing makes Riesling, Pinot Noir, Pinot Gris and perfect sense. Esterer set out to be an Cabernet Sauvignon,” Esterer explains. engineer and instead pioneered a regional Apprenticing to Frank in summer 1968, wine, and Esterer’s 2002 Late Harvest wine industry. Esterer returned home with his mentor’s Chardonnay is exquisite. Once visiting His questions led him there. vine stock to establish a classic varietal the appellation, wine historian Leon The research process comes naturally vineyard. Adams proclaimed Markko’s 1972 vin- to Esterer. Charles Ezra Green, his great- Esterer is passionate about wines tage Riesling the greatest in the country. great-grandfather, was Michigan’s first being true to their region. In these days In 1997, the American Wine Society pre- dean of engineering. His grandfather, of technology and designer yeasts sented Esterer its Award of Merit; and Albert E. Green, graduated from the enabling winemakers to craft whatever earlier this year the pioneer winemaker University as did his mother, Marie-Louise is fashionable, Esterer allows his wines was a 2005 inductee to the Ohio Wine- Burt, a biochemist. His father, Arnulf to discover their own character, a true maker Hall of Fame. Karl Esterer, was a researcher. Arnie reflection of their region as well as the It’s clear that Arnie Esterer has Esterer earned his undergraduate degrees growing season. created a red and white legacy. Watch in economics and Russian studies in The respect pays off. Markko for nuances of blue and gold. They make 1954 and his MBA the following year. Vineyard’s Riesling and Chardonnay his wines special. The challenges of viticulture became are exceptional examples of regional Zoe Komaransky

Ron Johnson, BBA ’69 businesses with annual revenues of up to written by Glenn under the pen name was inducted into the Michigan Sports $20 million. Dean also serves on the St. Andy Parzit. The 120-page illustrated Hall of Fame on September 22. Ron was Luke’s Health Initiative executive com- book engages the reader in a ridiculous the Big Ten’s Most Valuable Football mittee and the Better Business Bureau membership process, psychological con- Player in 1968, the year he set a school board of directors. He can be reached at ditioning, a quiz and other golf antics record by rushing for 347 yards in one [email protected]. relating to the fictitious Golf Mulligan game. A member of the College Football Association. For additional information Hall of Fame, Ron played for the Cleveland Glenn Rader, MBA ’76 or to order a copy, visit www.worldclass- Browns in 1969 and the New York Giants After 28 years working in corporate mulligans.com. You also can reach Glenn from 1970 to 1975. Ron is now the presi- finance, Glenn founded his own product directly at [email protected]. dent of Rackson Corp., a Totowa, New development and innovation company in Jersey, firm that owns 24 Kentucky Fried 2002, or as he says, Richard O. Anderson, MBA ’77 Chicken stores in three states. “We produce a principal engineer with SOMAT inventions and Engineering in Detroit, has been elected Dean Rennell, BBA ’75, MBA ’80 ideas.” In May, 2004–2005 president of the Accreditation is executive vice president of Wells Fargo NooVoo Board for Engineering and Technology business banking in Phoenix. Dean and Publishing, a (ABET). his wife Natalie moved to Arizona in branch of his Richard is 1981 where she had lived earlier. He company, alicensed started with First Interstate Bank, which released the golf professional became part of Wells Fargo in 1996, humor book engineer in when he took over the business-lending World Class six states. group that deals with small businesses. Mulligans for ABET, the He oversees the bank’s 175-person team Golfers with recognized in Maricopa County. The group serves Extra Balls, accreditor

DIVIDEND 46 FALL 2005 CLASS NOTES evaluation of the state’s tax structure and shares his memories of Garbo and illu- recommend revenue and tax policy. Ron minates for the first time her early years for college and university programs in practices law with the Torkildson Katz in Europe before coming to America in applied science, computing, engineering firm in Honolulu, concentrating in taxa- 1925. She made only 26 films and retired and technology, is a federation of 30 pro- tion, tax litigation and business/commer- in 1941 at age 37. Her life after that was fessional and technical societies represent- cial litigation. He can be contacted at very private, but the “real” Garbo is ing these fields. ABET currently accredits [email protected]. revealed in this book. An exhibition of some 2,600 programs at more than 550 the original vintage prints will open at colleges and universities nationwide. Rick Snyder, MBA ’79 Scandinavia House in Manhattan on was named nonexecutive chairman of September 17 and remain on view Yoon-Dae Euh, PhD ’78 Gateway Inc. in Irvine, California, on through December. You can reach Scott president of Korea University in Seoul, May 19. Rick, who was a senior executive at [email protected]. which just celebrated its 100th anniver- at the company from 1991 to 1997, has sary, was awarded an honorary doctorate remained on the board. He is CEO and Ted N. Haddad, BBA ’82 of law from Waseda University in Japan founder of Ardesta LLC in Ann Arbor, is senior managing director of Azimuth on March 25. a privately held company specializing in Capital Management LLC in Bloomfield microcomputing technology. He will Hills, Michigan. With more than 20 Ronald I. Heller, MBA ’79 remain active with Ardesta and continue years’ investment managing experience, recently was appointed by Governor to reside in Ann Arbor. he is the former managing director of Linda Lingle R. H. Bluestein & Co. and vice president to the Tax Scott Reisfield, MBA ’81 of Goldman, Sachs & Co. Ted is a mem- Review is president of Active Life Foods in ber of the CFA Institute. He has served Commission Boulder, Colorado. He is the grand- as treasurer and a member of the board of the State nephew of Greta Garbo. He and of trustees of Kensington Academy and of Hawaii. co-author Robert Dance have written as a member of the Alumni Society The com- GARBO: Portraits from Her Private Board of Governors and the Corporate mission’s Collection (Rizzoli, New York, 2005), a Advisory Board of the Ross School task is to collection of extraordinary photographs of Business. You can reach Ted at prepare an she amassed during her film career. Scott [email protected].

DIVIDEND 47 FALL 2005 CLASS NOTES the National Ready Mixed Concrete develops, markets and delivers Internet- Association, and developed the industry administered career-related assessments Susan R. standard chart of accounts that was and personalized feedback reports. He Arneson, adopted in 2004. Joel has spoken about also has maintained a small CPA practice MBA ’84 and written articles on accounting and since 1989. Michael has started a new joined the technology issues facing the industry, vacation real estate rental business in Mexi- SmithGroup including a presentation at World of co Beach, Florida, and Atlanta. You can in June as Concrete 2005. Though continuing his learn more at www.mexicobeachusa.com. corporate involvement in the concrete industry, the He also started a self-storage mini-ware- marketing new firm housing business in Westcliffe, Colorado, director. The focuses on where he has a second home. You can SmithGroup offering learn more about that at www.uqairport- is an 800-person, international architec- high-level storage.com. And in his spare time, he ture, engineering, interiors, planning and accounting founded Orsus Management, an expense landscape architecture firm specializing and tax management company, at www.orsus- in the healthcare, learning, science and services to management.com. technology, workplace and urban design closely held and planning markets. You can reach businesses Susan T. Stillings, MBA ’87 Susan at [email protected]. in the con- recently joined Ogilvy Public Relations struction, Worldwide as a managing director Joel M. Ungar, BBA ’84 real estate, manufacturing and profes- focused on investor relations and finan- is a principal in Maddox Ungar PLLC, a sional services industries. Joel and his fami- cial commu- certified public accounting firm in Bingham ly reside in West Bloomfield, Michigan. nications, Farms, Michigan. Since graduating, Joel He can be reached at jmungar@maddox- including has worked primarily in public account- ungar.com. mergers ing with an emphasis on financial report- and acquisi- ing services. Prior to forming the firm, Michael J. Perullo, BBA ’86 tions and Joel was CFO of a large ready-mixed In January 2001, Michael co-founded IPOs. She concrete producer in metropolitan ecareerfit.com in Atlanta and has been will work Detroit. He is an active member of the CFO since that time. www.ecareerfit.com on develop- Business Administration Committee of is an entrepreneurial company that ing new

DIVIDEND 48 FALL 2005 CLASS NOTES in the New York City area, check out the Christopher Web site and the venue. Cortez, BBA ’96 business across the whole Asia Pacific was named to fill region. Susan’s experience includes hos- Robert Alpert, MBA ’92 the new post of tile takeovers, crisis management, litiga- Robert, his wife Marci and their one- director of mar- tion, intellectual property support and year-old daughter moved to Marblehead, keting and public implementing financial communication Massachusetts, this past winter. Robert relations at the strategies designed to increase and pro- is a senior manager in KPMG LLP’s National Center tect shareholder value. She holds the Advisory Practice, specializing in per- for Disability Chartered Financial Analyst designation formance improvement at banks. He Services. He will and also is a member of the National can be reached at [email protected]. oversee brand marketing, advertising and Investor Relations Institute. PR, special event marketing, design and Elizabeth Chiarucci Morgan, MBA ’92 logo development, and other communi- Philippe Prufer, MBA ’88 was promoted to senior vice president, cations areas. Chris also will lead the was chosen Executive of Value in the management director of Doner’s expansion of a campaign to enhance Pharmaceutical Industry segment by the Cleveland office in March. She is res- national exposure for the nonprofit Brazilian newspaper Valor Economico. ponsible for a variety of management agency based in Albertson, New York, Based on nominations submitted by duties as well as for overseeing the which has become a leader in the full major executive recruiting firms in marketing strategy for the agency’s integration of people with disabilities Brazil, the award is bestowed on the Kraftmaid, Cleveland Clinic, Sherwin- into everyday life. For more information, great corporate management talents in Williams, DuPont, Carlton Cards and visit www.ncds.org. the main MTD accounts. Doner, headquartered sectors of in Detroit, is the largest independently Tom Lewand, MBA ’96 Brazil’s owned advertising agency in North has been executive vice president and economy. America. Prior to joining Doner in 2001, COO of the Detroit Lions for the past The awards Elizabeth was vice president, account nine years. In addition to being the represent, supervisor for the Leo Burnett Co. team’s chief contract negotiator, he is in the per- in Chicago, and then vice president, responsible for taking the Ford Field son of the marketing for AmericanGreetings.com concept and leading the effort to make recipients, in Cleveland. it into a reality, as well as being the point the man- person for the Lions on the committee agement Gautam Singh, MBA ’95 that won the right to bring Super Bowl principles that should guide Brazil’s founded the smart cube, a London-, New XL to Detroit in 2006. economy toward sustainable growth. Delhi- and Chicago-based professional Philippe is president and general manager services firm specializing in providing Randi Evans, BBA ’98 of Eli Lilly of Brazil and the Southern customized market and business research will be marrying fellow Michigan alumnus Cone. You can reach Philippe at prufer.p and analyses, in February 2003. The David Schneiderman in November. They @lilly.com. firm’s clients include investment banks, are living in Brooklyn, New York, and private equity firms, management con- Randi owns three clothing boutiques Loren Heckelman, MBA ’89 sultancies, market research organizations called Rapunzel’s Closet, with a fourth Captain, Supply Corps., U.S. Navy, is and corporate clients throughout North opening in November. All are located now the comptroller for the U.S. Fleet America and Europe. Omer Abdullah, in Palm Beach and Palm Beach Gardens, Forces Command and U.S. Atlantic Fleet MBA ’95, has been named a director of Florida, and you can learn all about in Norfolk, Virginia. His responsibilities the company and its president for U.S. them at www.shoprapunzels.com. include the planning, budget formulation operations. You can contact Gautam at The newlyweds will continue to live in and execution of a $7 billion annual [email protected]. Brooklyn. You can reach Randi at budget in support of Atlantic Fleet oper- [email protected]. ating forces. You can reach Loren at Vasilios Vasiliadis, MBA ’95 [email protected]. was appointed vice president of product Jeffery Li, MBA ’98 management and marketing for Univa recently co-founded ESP Equity Partners Richard Stanton, MBA ’91 Corp. in February. Univa, based in to focus on private equity investment in has founded an innovative vocal bar in Elmhurst, Illinois, is a leading provider global pharmaceuticals. He worked for New York City for new music and the- of commercial software, technical Warner- ater graduates. There is more informa- support and professional services for Lambert tion at www.voicesbar.com, and if you the construction of grids based on open after gradu- click on the community pages from source Globus software. Vas brings ation and there, you can see and hear the perform- more than 18 years of experience in later co- ers. There are a host of Michigan gradu- software product management and con- founded ates featured, and there is talk about sulting to Univa. ESP doing an all-Michigan event. If you are Partners and ESP

DIVIDEND 49 FALL 2005 Banking on a Snowy Winter

or Hudson “Tucker” Holland, and Nordic skiing. In fact, Karhu, the MBA ’96, and co-workers at Trak Nordic division, makes skis for the F Sports USA Inc., including wife number-one seller of cross-country skis Michelle, a 1992 College of Engineering in North America—L.L.Bean. But Trak grad, the road to success depends a lot Sports is not your typical business either. on the weather. The company’s revenues No one wears a suit and tie in the con- rely solely on winter sports. verted old chocolate factory that now MELISSA V. PINARD “A lot of people think ‘you own a ski serves as Trak Sports’ United States company—how awesome!’ It certainly headquarters in Burlington, Vermont. is great when it snows,” says Holland, a As company treasurer, Holland con- native of Grosse Pointe Farms, Michigan, tributes to financial oversight and strate- who now lives in Vermont. “One thing gic planning. His wife spent seven years I like in a small company is that you can in quality and supply chain manage- make decisions quickly and take action. ment at Toyota, and is now Trak Sports’ But you also don’t have all the same director of R&D. Holland notes, “We’ve resources that are available at a large enjoyed the opportunity to work together company. You need to wear many hats a great deal even though it really was and do more with less most days.” our president’s idea!” Holland credits his entrepreneurial Although he grew up skiing in and global spirit being unleashed during Michigan, Holland has another interest, his business school days—particularly which is evident on his Vermont license through opportunities brought about plate—FLYFYSH. Holland feels that he by Andrew Lawlor, Global Projects is in a good position to market winter co-director and architect of the Ross sports products because he enjoys skiing School’s international action-based and riding, but they’re not his main pas- learning programs. sion, which helps him remain objective In 1997, Doug Barbor, the president of when evaluating business opportunities. Trak Sports, was looking for a business “All in all,” he says, “it’s hard not to love partner when he met Holland, who being in this business.” quickly realized he could combine his To learn more about Trak Sports visit passion for the outdoors with his career. the following Web sites: www.karhu.com Tucker Holland and wife Michelle Trak Sports produces winter sports hard and www.lineskis.com. goods that cover snowboarding and Alpine Melissa V. Pinard

Pharma, a specialty pharmaceutical com- Ascension Health. He will be responsible Village in pany sold to Protein Design Labs this for developing a sustainable, holistic Manhattan year. Focused on emerging biotechnology model for the healthcare delivery system since then. and pharmaceutical investment opportu- of the future. Prior to this, he was vice “We are nities in North America, Europe and president of clinical practice leadership active in the Asia, ESP Equity Partners will leverage at Thomson Medstat and a leader of the Michigan their pharmaceutical management, pro- healthcare practice at McKinsey & alumni duction, sales and marketing experience Company. He also holds his BA and community in the international pharmaceutical MD from Johns Hopkins University. and always industry with entrepreneurs and Ascension Health is the nation’s largest make investors worldwide. You can reach Catholic and nonprofit health system, time to see fellow alumni on football Jeffery at [email protected]. with more than 105,000 associates Saturdays,” says Rayman. He left serving in 20 states and the District Lehman last December and traveled Hyung Tai of Columbia. You can reach Hyung at with his wife to Costa Rica and to India, Kim, MBA [email protected]. where they were joined by Kavita’s ’00 parents. He is pursuing his Certified has been Rayman Bovell, MBA ’02 Financial Analyst designation and passed named vice started with Lehman Brothers in New level 2 in June. In May, he accepted a president York City in the Wealth and Asset new position as an investment analyst of research Management Group as an investment with the Managed Solutions and and devel- adviser. In June 2003, he married Kavita, Analytics Group of Merrill Lynch. You opment for and they have been living in the East can reach Rayman at [email protected].

DIVIDEND 50 FALL 2005 CLASS NOTES

Morgan Kinross Wright, MBA ’03 The Road Less Traveled has been promoted to director of the Undergraduate Business Career Center at n summer 2001, Ed Gibney, MBA neurial non-governmental organization the Carlson School of Management at the ’02, did a Domestic Corps internship dedicated to the economic development University of Minnesota. Previously she I in Elim, Alaska, a remote Eskimo vil- of the city and surrounding region. “I was associate director of corporate serv- lage reachable only by plane. “I worked helped organize and win three grants. ices at the Carlson School, spent on a feasibility study and market entry The first was for a computer training five years as a counselor at Life-Work plan for a granite quarry for this highly center with free Internet and inexpensive Planning Center in Mankato, Minnesota, unemployed village,” says Gibney. classes. The second was a Green Tourism and has worked at General Motors and When he received an e-mail from the (Bed & Breakfast) Marketing Cooperative. Eli Lilly. The center assists undergraduate Peace Corps while finishing his MBA You can see this at www.travel.net.ua,” students and alumni in planning their that discussed the agency’s advanced explains Gibney. Finally, he established careers and conducting internship and business assignments, Gibney says, “It a Women’s Entrepreneurial Training job searches. sounded like what I did in Alaska, and Center, which offers free classes to women it was a good time to do this. Tanya and interested in improving or starting their Adam Borden, MBA ’05 I had just received our master’s degrees own business. His wife, Tanya Wyatt, fol- and Nick Cucinelli, MBA ’05, won first (Tanya’s in criminology from Eastern lowed up on her master’s thesis about place at the sixth annual Wake Forest Michigan), we had no debt, no children, illegal trafficking of women to work in MBA Elevator Competition on April 2. no house and not a lot of things. And a women’s center dedicated to stopping They received cash and services totaling after graduate school for us and years of this crime. She organized project ideas, $50,000 for their business plan for working odd shifts as a police officer for wrote and won several grants, trained DuraPower, a company with a compact, Tanya, we really wanted time together.” and consulted. portable fuel cell that uses propane and Ukraine was the first country offered, Gibney and Wyatt left Ukraine at the is designed for outdoor enthusiasts. The and they happily accepted. “Our first end of April and arrived in the U.S. in competition included 25 teams of MBA preference was Eastern Europe because July. They spent time traveling through students. Each team pitched its business of the high technical level of work being Eastern Europe, Russia, Mongolia and plan to venture capitalists during a pair done there.” They lived in Chernivtsi, a China. In September, Wyatt entered the of two-minute elevator rides, with five city of about 300,000 that is working on a PhD program at the University of Kent in finalists selected to make more detailed United Nations World Heritage designation England where she will write her disser- presentations. for its historic center. Once an outpost of tation on the prevention of the illegal the Austro-Hungarian Hapsburg empire, trafficking of wildlife. Gibney is already Scott F. Sturges, MBA ’06 the city is dotted with old theaters, churches seeking positions with an international was reelected to a three-year term as and a university that was once a palace. development company. You can reach trustee of the Ohio Jury Management Gibney worked with a small entrepre- them at [email protected]. Association (OJMA). He also serves as the association’s counsel. He is an attor- Fred Wessells ney with McNamara and McNamara LLP Tanya Wyatt and Ed Gibney shop at a market in Columbus, Ohio, and an executive in the Ukraine. MBA student. The OJMA is a nonprofit association that promotes and enhances jury service through education and information. You can reach Scott at [email protected].

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DIVIDEND 51 FALL 2005 OBITUARIES tually his health worsened until he died of from which he retired in 1988. While in congestive heart failure. He is survived by Illinois, he had served as both alderman his son David of East Walpole, Massachu- and mayor for the city of Urbana. He also Robert William Adams setts, who works in nonprofit finance, spent several years on the board of the PROFESSOR EMERITUS OF and his son Stephen, a professional saxo- Illinois Society of CPAs. INTERNATIONAL BUSINESS phonist, his wife Lauren and their son Don worked on numerous committees died in Sarasota, Florida, on April 17, 2005, Evan, who live in Oakland, California. for the American Accounting Association at age 87. He was the first chairman of the (AAA) and the American Association of Department of International Business and Edwin Leroy Miller Collegiate Schools of Business. For many headed the Institute for International years he managed a summer tax program Commerce at the business school. Bob was PROFESSOR EMERITUS OF for Haskins & Sells at the University of born in Fort Wayne, Indiana, and was the BUSINESS ADMINISTRATION Illinois and then for the American Institute of Certified Public Accountants first in his family to go to college, attend- died on July 10 in Waikiki, Hawaii. Born ing Northwestern University on a scholar- (AICPA) at the University of Michigan. in Oakland, California, he received his BA He was elected president of both the ship and waiting tables at his Sigma Alpha and MS degrees from San Jose State College Epsilon fraternity house. He graduated in AAA and the American Tax Association in 1951 and 1957 and his PhD from the (ATA). Don received the highest recogni- 1940 with a degree in economics and then University of California in 1964. From went to Massachusetts Institute of Tech- tion from the ATA and the AICPA 1960 to 1963 he was an assistant professor Tax Section. Throughout his career, Don nology (MIT), where he studied under at San Jose State College. He joined the Professor Paul Samuelson, before being was concerned with maintaining and University of Michigan as an assistant strengthening the integrity of the pro- called into the military during World professor in 1964, was promoted to associ- War II. He was a Lieutenant JG in the fession and served on many committees ate professor in 1968 and professor in 1972. inside and outside the IRS with that goal Navy, helping develop statistical methods From 1986 to 1993 he served as associate for quality control of munitions production. in mind. He was kind, considerate, patient dean of the business school. Edwin was and inexhaustible—busy and in demand, While at MIT, Bob was a teaching assis- highly involved in the early design of the tant, and Barbara Cole was an assistant to but never too busy to listen and, more MBA core curriculum and in the begin- important, to hear. His favorite quotation a professor. They met and were married nings of the school’s Asia strategy and on December 24, 1943, in Washington, was, “Students are not an interruption to other international initiatives, which ulti- my work; students are my work.” D.C. Barbara earned her bachelor’s degree mately led to the formation of the MBA at Vassar and her MA from Harvard. Bob Domestic Corps, the MBA Africa Corps was transferred to San Diego, where and the Center for International Business James Brinkerhoff Barbara worked in a munitions plant. He Education, among others. He also oversaw MBA ’48 later was transferred back to Washington the development and growth of the school’s to serve out his Navy term, and Barbara division of research. died on May 13 at age 82 in Ann Arbor worked in the U.S. Treasury Department. Edwin retired from active faculty status following what his family termed “a coura- He received his PhD in the 1950s. Bob at the University of Michigan on June 30, geous and some say miraculous fight with accepted his first position with Standard 1997. He was a visiting professor at the cancer.” He is survived by his wife of Oil Co. of New Jersey, now ExxonMobil, University of Hawaii’s Manoa Business 62 years, Margaret, sons Jim, David and in New York City in 1946. He did world- School and the Pacific Asian Marketing William, and daughter Jill Arnold, as well wide economic forecasting of the need for Institute. He is survived by his wife Anne, as 11 grandchildren and five great-grand- petroleum, which involved substantial son Erich, daughters Rebecca and Jane children. Born in Chicago and raised in travel—something he enjoyed tremendously. and five grandchildren. Buffalo, Jim came to Michigan in 1941 to In 1965 he decided to return to the attend Alma College. He was called to academic world and accepted the position active military service in 1943 and fought at Michigan. “What interested him most Donald H. Skadden in the Pacific theater of operations, earn- were the cultural problems of people from ARTHUR YOUNG PROFESSOR ing a silver star while fighting in Saipan, different countries working together,” says Okinawa and in the first army of occupa- his son David. He loved working with EMERITUS OF ACCOUNTING tion in Japan. After receiving his MBA, he doctoral students, but also soon found died on February 8 in Sanford, North became the University’s director of plant himself helping small businesses develop Carolina, at age 80, after a long illness. operations and buildings, rising to director export markets for non-automotive prod- Following military service in World War of business operations and associate vice ucts from Michigan. A small school in the II, Don received three degrees from the president. Netherlands entered into a relationship University of Illinois. After teaching at He later with the University to develop an Illinois from 1955 to 1973, he was a visit- worked American-style MBA program, and he also ing professor at the business school in with the became heavily involved in that project. 1973–74; he then joined the faculty in manage- Bob and Barbara retired to Sarasota in 1974. From 1975–79, he served as direc- ment team the early 1980s. Barbara died on November tor of the Paton Accounting Center and at Argus 25, 2002. Bob was extremely dedicated to chairman of the accounting faculty. In Camera in her, and cared for her until her death. He 1979 he accepted the position of senior Ann Arbor, made every effort to stay active, but even- associate dean for academic affairs, then moved

DIVIDEND 52 FALL 2005 OBITUARIES Bill began his career at Arthur Andersen tribute to my Bill,” says Donna. Bill is and became a partner in 1970. After he survived by Donna, his son William, his into management positions at the Univer- retired in 1990, he continued to work as granddaughter Rebecca and his siblings: sity. He left Michigan in 1971 for a six-year a tax and financial consultant with the John Adams, Richard Adams, Elizabeth stint as a vice president at the University firm until 2002. He was an active member Kirsten and Anne Adams. of Minnesota, but returned in 1977 as of the American Institute of Certified Memorial Contributions may be made vice president and chief financial officer Public Accountants and the Michigan to the William J. Adams Scholarship and retired from that position in 1988. Association of Certified Public Account- Fund, Ross School of Business, Univer- After retirement, he and Margaret split ants (MACPA). He served as a member sity of Michigan, 701 Tappan St., Ann their time between Arizona and Michigan. of the MACPA board of directors, on its Arbor, MI 48109-1234. But Jim continued his civic activity. While political action committee and was the in Ann Arbor, he served on the city coun- longtime chair of its governmental affairs cil, chaired the United Way, was active in committee. In 1972, MACPA awarded Millard Pryor the Chamber of Commerce, the Brother- Bill its Distinguished Service Award. At MBA ’57 hood, the Vice Presidents Club and the the time of his death, Bill was board chair- died on March 1 in Hartford, Rotary. At First Presbyterian Church, he man of Detroit Executive Service Corps Connecticut, at age 71. Formerly in was ordained an elder in 1951, serving (DESC), a volunteer organization that charge of Lydall Inc., specialty engineer- several terms on the congregation’s gov- helps nonprofit agencies, public schools ing products, he also led the Hartford erning board. During retirement in Ari- and government organizations solve Symphony, the Connecticut Opera, the zona, Jim was treasurer of the Rio Verde management problems. In 2002, the Wadsworth Atheneum Museum of Art Community Association and active in the DESC awarded him the Robert F. McGill and the Greater Hartford Arts Council. Rio Verde Community Church and Leadership Award, named for its founder. Other organizations in which he was Habitat for Humanity. Memorial contri- Bill had a tremendous impact on involved include Camp Courant, the butions may be made to the University of the lives of other young people and Hartford Courant Foundation, the Michigan Cancer Center and to the Ross adults as a result of his numerous volun- University of Hartford, the Amistad School of Business, where a scholarship teer positions, including serving as a Foundation, the American Heart will be established in his name. Grosse Pointe School Board member, Association, Capital Community College, Junior Achievement adviser, junior the Institute of Living, the Connecticut William Johnston Adams hockey coach, and sailing instructor Alliance for Arts Education and the at the Detroit Yacht Club and Detroit United Way of Greater Hartford. He and BBA ’57, MBA ’58 Boat Club. His love for sailing was his wife Claire were dedicated volunteers. passed away on February 27 after a long unparalleled. He also served for more “When you are passionate about some- illness at age 70. An exceptional gentleman, than 20 years as the chairman of the thing, you support it,” he once stated he mentored countless young people Greater Detroit Foreign Trade Zone, when asked how he found time to work throughout his 45-year career as a CPA. president of Civic Searchlight and chair- with so many nonprofit groups. Bill had a knack for helping guide young man of the Paton Advisory Board for professionals to success while treating Excellence in Accounting Education at them as an equal member of the team the Ross School of Business since 1997. Jill Gabrielle and honoring the unique perspective and For 25 years he was the lead person for Wilson Hamlett skills they brought to the table. Bill’s own the worldwide Andersen firm seeking mentoring was his source of inspiration. financial support from Michigan alumni MBA ’95 “It was always fun to go to work,” he once for the University. He took great satisfac- died in Sleepy Hollow, New York, on said. “The challenge of working with tion in this role, noting that the firm April 27, at age 36, from breast cancer. stimulating individual and corporate then had the largest base of Michigan Her son, Nathaniel, described her as clients and with bright young people alumni partners and managers of all the kind, nice, loving, caring, thoughtful, striving for excellence and quality was a major accounting firms. brave, courageous, noble, understanding, constant incentive.” Bill studied under the “Bill Adams was a consummate pro- adoring, helpful, beautiful, supportive legendary Professor William A. Paton, fessional who gave generously of his and strong. She exemplified how fulfill- was a member of Sigma Alpha Epsilon time to public service,” says Carl Griffin, ing life can be if we focus on the oppor- fraternity, was the president of the Student professor emeritus of accounting. “He tunities God promises and not the Council in his senior year and elected to was a man of great energy and integrity, obstacles life presents. Wherever she member- and a natural leader who sought no went, Jill sprinkled the world with seeds ship in glory. One of his greatest joys was guid- of kindness and compassion that bore the Michigama, ing and supporting young people. I will fruits of love. Jill’s legacy will be a prestigious miss Bill greatly as a colleague, a mentor carried on by her husband Reginald recognition and, most important, as a great friend.” Hamlett, MBA ’95, and their children of his mul- His friends and family came to visit him Nathaniel Christian and Joshua Gabriel. tiple campus regularly, and his wife, Donna Wolcott She also is survived by her mother Judith activities Adams, received some 200 e-mails, Wilson, brother Craig Wilson and sister outside the letters and cards expressing love, friend- Traci Wilson, as well as many other classroom. ship and condolences. “It’s a wonderful family members.

DIVIDEND 53 FALL 2005

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wo years of intense effort paid off project manager of Michigan’s 2005 for solar car drivers Michael national champion solar car team. The Powering T Adams, ME ’06, left, and Joe Belter, University has won the national cham- ME ’08, and other Team Momentum pionship four times since the competi- members when the University of tion began in 1990. Other Ross School Momentum Michigan’s entry into the North Team Momentum volunteers included American Solar Challenge crossed the Jonathan Plichta, BBA ’06, Web site finish line in Calgary, Alberta, on July coordinator, Jon Bates, MBA ’06, and 27. Michael Brackney, BBA ’06, was Adarsh Das, MBA ’06.

STEFANO PALTERA/NORTH AMERICAN SOLAR CHALLENGE