SIMONBUSINESS WILLIAM E. SIMON GRADUATE SCHOOL OF BUSINESS ADMINISTRATION | SPRING 2002
ALSO INSIDE: JETBLUE’S DAVID NEELEMAN • NASDAQ’S FRANK ZARB • SIMON ALUMNI NEWS Dean Charles I. Plosser, left, turns the podium over to Frank G. Zarb at the inau- gural William E. Simon Memorial Lecture. For more on lecture, see page 11. Spring 2002
06 11 18 04
03 Message From the Dean
feature 04 True Blue JetBlue CEO David Neeleman on his airline’s recipe for success. —by Charla Stevens Kucko cover story 06 On the Wings of Goodyear Goodyear President and COO Robert J. Keegan ’72 is changing the way one of America’s oldest companies does business. —by Hilary Appelman business 11 feature William E. Simon Memorial Lecture Series Frank G. Zarb, chairman of Nasdaq Europe and senior advisor to The Nasdaq Stock Market, Inc., discusses the Enron crisis.
feature 18 Research Leadership Highlights • Consumer Choice and Attitude-Decision Consistency • Governance and Conduct in the Market for Managed Health Insurance • Stock Volatility in the New Millennium: How Wacky Is Nasdaq? —by Sally Parker
newsFLASH 21 Simon Launches New E-publication
alumni news 22 • Simon Sponsored E-Business Forum Draws Over 40 in London • Profile: Scott J. Gordon ’85
• Profile: Brent Nyitray ’94 BUSINESS 2002 Spring —by James Moore
• Mergers and Acquisitions SIMON • Class Notes 01 DEAN: Charles I. Plosser SENIOR ASSOCIATE DEAN FOR CORPORATE RELATIONS AND INSTITUTIONAL ADVANCEMENT: Charles W. Miersch SENIOR ASSOCIATE DEAN FOR FACULTY AND RESEARCH: Ronald W. Hansen ASSOCIATE DEAN FOR EXECUTIVE PROGRAMS: Richard M. Popovic ASSOCIATE DEAN FOR M.B.A. PROGRAMS: Stacey R. Kole CHAIRMAN, PH.D. PROGRAM: Ross L. Watts ASSISTANT DEAN FOR CAREER MANAGEMENT: Lisa M. McGurn ASSISTANT DEAN FOR INFORMATION TECHNOLOGIES: Kevin Brennan ASSISTANT DEAN FOR M.B.A. ADMISSIONS AND ADMINISTRATION: Pamela A. Black-Colton EXECUTIVE DIRECTOR OF ALUMNI RELATIONS AND DEVELOPMENT: Hollis S. Budd DIRECTOR OF ALUMNI RELATIONS: James Moore DIRECTOR OF MAJOR GIFTS: M. Eve Elzenga DIRECTOR OF MARKETING: Dawn S. McWilliams DIRECTOR OF OPERATIONS AND FINANCE: Martha Every DIRECTOR OF PUBLIC AFFAIRS: George M. Tomczyk DIRECTOR OF STUDENT SERVICES: Donna Lampen-Smith
EDITOR: Charla Stevens Kucko CONTRIBUTING EDITOR: SIMONBUSINESS, Vol. 16, No. 2 © 2002. James Moore Published semiannually by the University of Rochester, William E. Simon Graduate School of Business Administration, Carol G. CONTRIBUTING WRITERS: Simon Hall, Box 270100, Rochester, New York 14627-0100. Hilary Appelman, Sally Parker Postmaster: Send address changes to the William E. Simon Graduate ART DIRECTOR/DESIGNER: School of Business Administration, Carol G. Simon Hall, Box Michael T. Johnson 270100, University of Rochester, Rochester, New York 14627-0100. BUSINESS 2002 Spring PRODUCTION MANAGER: © 2002 William E. Simon Graduate School of Business John M. Robortella Administration, University of Rochester SIMON PHOTOGRAPHY: 02 Annette Dragon, John Smillie WILLIAM E. SIMON GRADUATE SCHOOL OF BUSINESS ADMINISTRATION
Message FROM the dean
t the Simon School, we are constantly aware of the fact A that maintaining excellence—in our programs, faculty and research, and in the quality and success of our students— is an ongoing process. With that in mind, I am pleased to say that the School was ranked No. 23 in U.S. News & World Report’s 2002 rankings of graduate business schools—up three places from No. 26 in the 2001 ranking. The survey results were based on a poll of corporate recruiters and business school deans, and on statistics supplied by the participating schools. However, while it is gratifying to be ranked among the top business schools in national publications, we will not stop in our efforts to improve all aspects of the School. We will remain cog- nizant of the fact that rankings can be erratic and stay focused on enhancing the fundamental elements that contribute to an out- standing management education and the success of our students. By working together, we will continue to improve and ensure the recognition that goes with it. The cover story in this issue of Simon Business focuses on Robert J. Keegan ’72, a highly successful alumnus for whom excellence is also a top priority. As president and chief operating officer at Goodyear Tire & Rubber Co., Keegan is changing the way one of the nation’s oldest companies does business. His innovative marketing strategy, complete with an advertising cam- paign entitled “On the Wings of Goodyear,” is aimed at guiding the company to a new level of success. Keegan, considered a mar- keting whiz during his tenure at Eastman Kodak Company for successfully deterring a challenge to Kodak’s North American market share, discusses his role at Goodyear, and also shares his views on teamwork, leadership and the value of a Simon M.B.A. In this issue, we also present the full text of the inaugural William E. Simon Memorial Lecture, given by Mr. Simon’s close friend and colleague, Frank G. Zarb. Mr. Zarb, chairman of Nasdaq Europe and senior advisor to The Nasdaq Stock Market, spoke on the lessons to be learned from the Enron collapse. On behalf of the Simon Community, I would like to extend our grati- tude to Mr. Zarb for joining us in honoring the memory of our generous benefactor, Bill Simon, who died in 2000. Thank you for taking the time to read this magazine. I hope you enjoy the information it contains. Since our commitment to excellence applies to all facets of the School—including Simon Business—we always welcome your feedback.
Charles I. Plosser BUSINESS 2002 Spring Dean and John M. Olin Distinguished Professor of Economics and Public Policy SIMON
03 WILLIAM E. SIMON GRADUATE SCHOOL OF BUSINESS ADMINISTRATION
Feature leadership