Innovation to the Rescue What Entrepreneurship Means to America’S Economic Recovery Major Gifts

Simon School of Business/University of rochester Fall 2012

SIMONBUSINESS

Innovation to the Rescue What entrepreneurship means to America’s economic recovery Major Gifts

Simon Receives Nearly $7 Million in Major Gifts

The Simon School of Business is receiving four major gifts total- Medical Cen- ing nearly $7 million in support of The Meliora Challenge: The ter. The Simon Campaign for the University of Rochester. These gifts will ad- School will re- vance strategic initiatives in the areas of scholarship and faculty ceive $750,000 support, curricular enhancement, and increasing the School’s to establish the presence in New York City. Joseph and Pa- tricia Abrams ■■Ronald H. Fielding ’73 (MA), ’76S (MBA) Endowed Fund has pledged $5 million in additional scholar- for Innovation ship support to the Simon School, adding and Entrepreneurship. The fund will provide endowed support to his generous $2 million in prior giving. for either a term professorship or staff/administrative position An active alumnus and generous benefac- promoting entrepreneurship or innovation at the Simon School. tor, Fielding spent more than 25 years in the The endowment could also support a set of staff or junior faculty municipal bond industry. He retired from positions. The Abrams are also pledging $250,000 to support OppenheimerFunds Inc. in 2009, where he the Abrams Family Fund for Myotonic Muscular Dystrophy Re- served as senior vice president and portfo- search at the University of Rochester Medical Center. Joseph lio manager overseeing a municipal bond portfolio in excess of Abrams is an active alumnus and member of the Simon School’s $30 billion. Fielding, a longtime member of the Simon School Executive Advisory Committee and National Council, and Executive Advisory Committee and National Council, provides serves as co-chair of the University’s San Francisco Bay regional guidance in Simon’s initiatives and is a frequent guest lecturer to campaign. “I am pleased to be able to make this additional com- students about his experience in the investment markets. “I am mitment to the Simon School and the University,” Abrams said. happy to share the fruits of my business success with the Simon “Investing in the education of our future leaders is very impor- School, which helped me to bridge economic theory with busi- tant, and I hope this gift, in some small way, helps the faculty, ness realities, giving me the ideal preparation to start and suc- administration, students, and alumni continue to flourish.” ceed at my own business,” Fielding said.

■■James S. Gleason ’68S (MBA), has commit- ■■Daniel G. Lazarek ’91S (MBA), CFO, COO, ted $150,000 to provide scholarships and and co-owner of Access Insurance Hold- faculty support. Gleason is chairman of the ings Inc., an Atlanta, GA-based insurance board of Gleason Corporation and chairman company, has made a $1 million commit- of the Gleason Foundation. A graduate of ment to support the recently established the Simon School’s first Executive Devel- student-run Simon School Venture Capital opment (now Executive MBA) Program (VC) Fund. Access has consistently been class, he is a Life Trustee of the University recognized on the Inc. magazine 500/5000 of Rochester and a charter member of the list of fastest growing privately held compa- Simon School Executive Advisory Commit- nies over the last several years. Previously, Lazarek spent several tee. His past leadership gifts to Simon have enabled the con- years in the telecommunications industry at Worldport Commu- struction of James S. Gleason Hall in 2001, providing more than nications, Citizens Communications, and Frontier Communica- 38,000 square feet of additional space for the School including tions. He is a member of the Simon School Executive Advisory five classrooms, 15 study rooms, and a significantly expanded Ca- Committee and National Council and also provides strategic reer Management Center. guidance and capital to early stage companies. “I am proud to help others think about what it takes to succeed in businesses “We are very grateful to Ron Fielding, Dan Lazarek, Joe and Pat and to invest in themselves and their ideas,” Lazarek said. “My Abrams, and Jim Gleason for their generosity. Their gifts and gift to ‘jump start’ and establish the Simon School Venture Capi- commitments have helped Simon secure $56 million toward our tal Fund will provide a vehicle with guidance from experienced goal of $85 million as part of the University’s Meliora Challenge,” and successful entrepreneurs to give Simon students, alums, and says Dean Mark Zupan. “Their support will help us to enhance all associated an ability for ‘skin in the game’ to guide this pipe- our programs, attract and retain members of our renowned fac- line of entrepreneurial pursuits.” ulty, and make a Simon education possible for more students. Our ultimate goal is to provide our students with the best pos- ■■Joseph W. Abrams ’74S (MBA) and Patricia Abrams are pledging sible management education in the years to come.” s $1 million to the Simon School and the University of Rochester Contents Fall 2012

2 Dean’s Corner The Power of Human Capital 4 The Meliora Challenge An Update on Our Strategic Initiatives 6 Upfront Simon NYC Events Shine Spotlight on School Innovation Drives New Program Offerings Simon Wins at International Graduate Competition Simon Selected for First Test of Watson Simon Hosts Graduate Business Forum Mark Ain Business Model Competition Commencement 2012 Celebrates Community Simon in the News Thomas Jackson gives 14 a glimpse of the world 12 through his camera’s Our Fragile Simon Goes Global lens. Explore a side of Fiscal Future Global business leaders gather to identify the challenges and the former University Opinion by David M. Primo opportunities of emerging markets. By Jim Ver Steeg president and Simon professor you may not 38 18 have seen before. Research Highlights The Pitfalls and Promises of Pricing PAGE 26 Timing, Timing, Timing The Word of Mouth Speaks A look at the power of pricing and how Simon is taking the guess work out of the bottom line. By Jim Ver Steeg Patients Prefer Same Gender Understanding Incentives 22 Online Extra 42 www.simon.rochester.edu/ Simon School + Welch Allyn news-and-media/index.aspx Alumni Leaders How a successful medical equipment company and the Les s is More: Jennifer Singleton Simon experience work together to form a winning partnership. Government impact on ’90S (MBA) the economy Bob Lerner ’78S (MBA) By Joy Underhill and Sally Parker Challenges for Dilip Sundaram ’88S (MBA) Health Care reform Randy Weaver ’03S (MBA) 28 POlitical Climate and 46 Innovation to the Rescue INvestment Decisions Obama vs. Romney: New Faculty A look at how entrepreneurship and business innovation are fueling America’s economic recovery. By Charla Stevens Kucko Campaign Ad Negativity 47 Photo Album Alumni News 36 flickr.com/simongsb/sets Class Notes l atest photographs Simon Marks Wallis 100th Birthday from Simon School Mergers & Acquisitions A look back at the man who helped create Simon. By Jim Ver Steeg activities and events

Thomas H. Jackson Simon Business ◾ Fall 2012 1 Dean’s Corner

The Power of Human Capital From instilling the spirit of entrepreneurship in our students, to fulfilling the goals set in our strategic plan, the resource that fuels our efforts is human capital. It inspires innovation, drives us toward academic excellence, and propels us to a place that is ever better.

There is nothing more powerful than the ideas that to differentiate our programs. I am reminded of the are generated from the minds of bright and talented famous quote, “Differentiate or die.” That is a lesson individuals. Infinite possibilities are born through for all of us—and one that some companies wisely a combination of creativity, hard work, anticipate while others fail to take to heart. and enthusiasm. This issue ofSimon Busi- Emerging themes for our revised Strategic Plan ness focuses on harnessing the power of include: enhancing student quality/employment human capital and translating innovative outcomes, faculty impact, differentiated programs, ideas into new businesses and endeavors. New York City as our second home, articulating our That spirit of entrepreneurship has long brand, and advancement. Enhancing student quality/ been nurtured here at the Simon School. employment outcomes is our number one priority With that mindset of innovation and pos- since their success is at the heart of all we do. Recent sibility, we reviewed our 2008 Strategic changes in our Career Management Center have Plan, “Aiming Higher,” this summer and yielded positive placement results over the past two are developing our course of direction years, due in large part to the efforts of Bob Park and for the next five years. his Career Management Center team, and compensa- Key areas of accomplishment in our tion is up about $14,000 over last year. 2008 Strategic Plan goals include in- Simon is noted around the world for teaching creased student enrollment, recruitment excellence. We intend to expand our world class Dean Zupan dis- of premier faculty, and enhanced financial sustain- faculty by adding tenure-eligible scholars over the cusses priority ability. We are pleased with the progress we’ve made next several years. We are welcoming three distin- issues and objec- on those fronts; however, the graduate business guished scholars in the areas of economics, entre- tives in develop- education climate has changed dramatically since preneurship and marketing, and computers and ing Simon’s new 2008, underscoring the need to stay focused on in- information systems (see p. 46 for more on our new strategic plan. novation. Particular emphasis will be placed on how faculty members).

2 Fall 2012 ◾ Simon Business RT ia afANI Entrepreneurship at Simon SIMON BUSINESS . . . has become our second Vol. 26, No. 2/Fall 2012

Dean largest concentration Mark Zupan generating significant interest Dean and Professor of Economics and Public Policy Faculty and Research Rajiv M. Dewan ’84S (MS), ’87S (PhD) among prospective and Senior Associate Dean for Faculty and Research, Professor of Computers and Information Systems admitted students. Masters Programs Delores Conway Our expanded presence in New York City through the MS Faculty Associate Dean for Masters Programs; Professor of Statistics and Real Estate Economics Finance program located there and our conference on risk Program Development management and the appropriate role of government in soci- Ronald W. Hansen Senior Associate Dean for Program Development; William H. Meckling Professor ety have increased our presence in the world’s financial capital. of Business Administration; Director of the Bradley Policy Research Center Our annual New York City Conference continues to grow each Editor year, garnering visibility for the School. Our aim is to build on James A. Ver Steeg that success. Contributing Writers Charla Stevens Kucko, Sally Parker, Joy Underhill Entrepreneurship at Simon will be more broadly defined Ar t Director moving forward. It continues to generate significant inter- Geri McCormick est among prospective and admitted students. Through the Graphic Design Steve Boerner Typography & Design Inc. leadership and guidance of our broad base of alumni entrepre- P roduction Manager neurs, we will be exploring ways to enhance our reputation as a John M. Robortella School and differentiate based on our entrepreneurial endeav- C opy Editor ors. The addition of an endowed professorship, enhancement Ceil Goldman Photography of curricular offerings, and the recently established Venture Annette Dragon, Adam Fenster, AP Photo/Martin Meissner, AP Photo/ Capital Fund are major steps in continuing to make our name Tony Talbot , Matt McKee, John Robortella, John Smillie, Ria Tafani, Shannon Taggart in entrepreneurship (see story and sidebar on p. 28 for more). C over Illustration Phil Bliss Articulating our brand and advancement will be critical parts Simon Alumni News/Contributing Writers of our strategy over the next five years, and increasing mem- K ate Gruschow ’11S (MS), Kelly Rains, Joy Underhill bership in the George Eastman Circle (GEC) is crucial. We have already made great progress in that regard. Simon currently has 344 GEC members who have made a five-year Simon Business, Vol. 26, No. 2. ISSN 1077-5323 pledge of at least $1,500 a year. This past fiscal year, we re- Published twice a year by the University of Rochester, William E. Simon School of Business, ceived over $14 million in gifts and pledges, giving us a total of 2-341 Carol G. Simon Hall, Box 270100, Rochester, $56 million in gifts and commitments toward our $85 million New York 14627-0100. Office of Marketing and Communications: (585) 275-3736 (phone), (585) 275-9331 (fax), goal. This capital campaign effort will enable us to increase stu- [email protected]. dent scholarships, faculty support, and program innovations. Postmaster: Send address changes to the Simon School of Business, 2-341 Carol G. Simon All of these strategic goals coincide with the Meckling/Jen- Hall, Box 270100, University of Rochester, Rochester, New York 14627-0100. sen philosophy of having “skin in the game,” or the idea that © 2012 William E. Simon School of Business, managers and stakeholders will work harder and have a better University of Rochester chance at success when they have a personal stake in the long- MC12-13-3 term health of an organization. That same theory can be applied to the Simon School. Ultimately, this is your School, and it is only by strengthening this relationship and your involvement and support that we can achieve our goals. Meliora! s

Mark Zupan Dean

Simon Business ◾ Fall 2012 3 The Campaign for Simon A n Update on Our Strategic Initiatives

Students incubator. For more information on these The MBA/MS Admissions Office hosted exciting startups, please see our special fea- two successful Scholarship Weekend events ture on page 28. this winter and spring. Sixty admitted MBA students and 25 admitted MS students vis- Program Innovation ited the campus across the early February A unique and exciting Experience Simon and late March weekend events to compete Module (ESM) was held in New York City for scholarship support through a case pre- on May 4. Students met with three Fortune sentation, group interview, writing assign- 500 executives to examine the funda- ment, and team assessment. We had well mentals of leadership: Robert J. Keegan over 100 students, faculty, staff, and alumni ’72S (MBA), ’10S (LLD) former involved in the planning and execution of CEO of The Goodyear Tire & these events, and would especially like to Rubber Co.; Robert Sands, CEO recognize Marais Lombard ’12S (MBA), of Rochester-based Constellation Audrey de Graaff ’12S (MBA), and Wesley Brands, the world’s largest premium Wu ’12S (MBA) for assisting in the planning wine producer and distributor; for student volunteer support throughout and Kevin Sharer, CEO of Amgen. these events. Students took advantage of this unusual opportunity by asking ques- Entrepreneurship tions about what it takes to succeed in Aspiring student entrepreneurs and ven- today’s business climate. ture capitalists will now have an innovative hands-on educational opportunity to Specialty Initiatives manage a philanthropically funded Venture Simon recently created an initiative to pro- Capital Fund. At launch, the fund had vide our full-time students the opportunity commitments exceeding $1 million, and is to visit with alumni outside the classroom. expected to grow over time in step with the The Breaking Bread program is an expan- portfolio of investments. The fund, made sion of the traditional lasagna dinners hosted possible by philanthropic support from by Dean Zupan, with local alumni, faculty, Simon alumni entrepreneurs, will be over- and friends hosting a meal for up to 12 stu- seen by a board of directors led by chairman dents. Those who have already stepped up Christopher Schiavo ’90S (MBA), CFO to host a dinner include: John Anderson of Battery Ventures, a Boston-based global ’80S (MBA), Lou Applebaum ’93, ’95S venture capital firm. (MBA), Erin Budd Barry ’10S (EMBA), The Simon School is partnering with Holli Budd, former associate dean for MBA High Technology Rochester to further administration and external affairs, Dennis promote startup innovations. Through the Kessler, David Burns ’78S (MBA), Chris support of Mark S. Ain ’67S (MBA) and Dunstan ’81S (MBA), Sean Flaherty Carolyn Ain, the partners opened a student- ’06S (EMBA), David Klein, Paul business incubator near the University’s McAfee ’95S (EMBA), Dave River Campus. The incubator offers men- Mirsky ’91S (MBA), Kevin toring, coaching, and administrative sup- Pickhardt ’90S (EMBA), port for young companies being developed Amy Tait ’85S (MBA), and by students. Over the summer, five stu- Kate Washington ’04S dent-run businesses got their start in the (MBA).

4 Fall 2012 ◾ Simon Business For more information on The Meliora Challenge: The Campaign for the University of Rochester, visit: campaign.rochester.edu

Message from the Dean With Support Comes Innovation Just a few short months ago, in the Spring 2012 issue of this magazine, we shared with you the important role that the Simon School would play in the University of Rochester’s Meliora Challenge. With an ambitious goal of $85 million, our School will provide an important contribution to the $1.2 billion that the University plans to raise in its most significant fundraising campaign ever. I am proud to announce that under the direction of Simon campaign committee chair Janice M. Willett ’78S (MBA) we have already raised $56 million toward that goal. With more than $11 million donated and pledged to our annual fund and millions more to support our scholarships and profes- sorships, your generous contributions have already enabled us to pursue academic innovation and push the boundaries of business education to new and exciting heights. For example, we have added nine new professor- ships through the campaign to date beyond the nine that were in existence prior to the start of the campaign. We have also added roughly $1.1 million in additional annual unrestricted philanthropic scholarship support through the Meliora Challenge, com- pared to a base level of $400,000 in annual support prior to the start of the campaign. And we have launched an undergraduate business major and dramatically expanded our entrepreneurship program activities largely on account of philanthropic venture capital support provided through the Meliora Challenge. As we focus this issue of Simon Business on entrepreneurship as an economic engine, it is important to recognize the impact your gifts and support have on preparing our students business principles and value of innovation On behalf of our School’s students, fac- for the challenges and opportunities of the taught in nearly every Simon classroom. ulty, and staff, thank you for making this modern business world. Startup companies With your generous support of time, progress possible. are the new reality, and our philanthropically talent, and treasure, we intend to not only funded Venture Capital Fund, along with our achieve but significantly exceed our overall Meliora! student business incubator partnership with fundraising goal. Most important, your gifts High Technology Rochester, are provid- will provide Simon with the resources that Mark Zupan ing critical hands-on learning that deepens allow us to take smart risks and take our Dean our students’ understanding of the sound School to the next, higher level of excellence.

John Smillie Simon Business ◾ Fall 2012 5 Upfront

Simon NYC Events Shine Spotlight on School

The Simon School hosted a variety of activities in & Co., and the author of the bestselling book Power Global Impact pan- New York City in May, enhancing its presence in the Listening; Thomas F. Cooley, Paganelli Bull Professor elists (left to right) world’s financial and media capital. of Economics and former dean, NYU Stern School of chief investment Simon’s third annual New York City conference, Business; and Simon and University professors David strategist for UBS “Economic Action and the Management of Risk” on Primo, Clifford W. Smith Jr., and Jerold L. Zimmer- Wealth Manage- May 3, was a major success. It brought together gov- man, among other notables. ment Michael P. ernment, industry, and academic leaders to discuss The activities culminated with an outstanding Ex- Ryan ’81, ’84S economic and public policy issues facing our na- perience Simon Module. A select group of Simon (MBA), manag- tion and the world. More than 350 students, alumni, students met with three Fortune 500 executives to ex- ing director and corporate partners, and friends attended, while 20 amine the fundamentals of leadership: Robert J. Keegan product special- national media outlets covered the event, generating ’72S (MBA), ’10S (LLD), former CEO of The Good- ist for Harbinger 147 million media hits through 37 news items. year Tire & Rubber Co.; Robert Sands, CEO of Con- Capital Partners Speakers included: Jamie Dimon, chairman and stellation Brands, the world’s largest premium wine Mark Danchack CEO of JPMorgan Chase & Co.; Jeffrey Immelt, producer and distributor, headquartered in the Roch- ’94, ’99S (MBA), chairman and CEO of General Electric; Larry Kudlow ester area; and Kevin Sharer, CEO of Amgen. Scott and director of ’69, host of CNBC’s The Kudlow Report; Richard Gordon ’84, ’85S (MBA), partner at Kirkland & Ellis, corporate strategy Cordray, President Obama’s appointee as the inau- and a member of the Simon School Executive Advi- for SBM Offshore gural director of the Consumer Financial Protection sory Committee, hosted this event for our students. Saskia Kunst ’01S Bureau; University trustee Bernard T. Ferrari ’70, ’74M (MBA). (MD), dean of the Carey Business School at Johns Visit the NYC Conference web page for event highlights Hopkins University, chairman and founder, Ferrari and photos at Consulting, past head of health care for McKinsey http://www.simon.rochester.edu/nyc.

Whited Named to SFS Post Novy-Marx Cited for His Research T Moni Whited, ichael and Diane Jones Professor of Robert Novy-Marx, assistant professor of finance Business Administration, professor of finance, and at the Simon School, earned two prestigious chair of the PhD program, has been named chair awards: the Selected Research Prize from Whitebox Robert elect for the annual Society for Financial Studies Advisors for his paper, “Is Momentum Really Novy-Marx (SFS) Finance Cavalcade conference. As chair elect, Momentum?,” and the AQR Insight Award she will organize session discussants for the 2013 Distinguished Paper Prize from AQR conference and will serve as program chair of the Capital Management for his study, event in 2014. The SFS Cavalcade is a five-day event “The Other Side of Value: The covering all fields of finance. Gross Profitability Premium.”

6 Fall 2012 ◾ Simon Business Shannon taggart, John Smillie Innovation Drives New Program Offerings

The Simon School recently introduced three exciting new programs that will help continue our traditions of excellence, innovation, and academic leadership.

Master’s Program in Business Analytics It’s a “Big Data” world and this Master of Science program provides the skills and program delivers an analytical and pace. The One-Year MBA is designed for methodologies for analyzing the infor- economics-based approach to business- professionals with at least four years expe- mation that is critical for quantitative to-business and business-to-consumer rience in their chosen field, but are look- decision-making. The Business Analyt- pricing. With the Simon Pricing con- ing to further develop their management ics concentration appeals to those who centration, our students will be uniquely capabilities. are focused on data modeling, statistical qualified to make smart and informed Students in the One-Year program analysis, and working with large data sets pricing decisions from detailed data anal- will be required to complete all the core in a framework that informs and instructs ysis and market research. classes already required by the flagship business strategies. Two-Year MBA program. One-Year MBA Like our EMBA program, the total Master’s Program in Pricing Beginning in June 2013, the One-Year credits required will be reduced by four One of the most critical but least under- MBA will be an accelerated program de- elective classes, since career-builders stood functions of a business is pric- signed to help career-building, seasoned are less in need of multiple majors and a ing. This innovative Master of Science professionals advance at an even faster broad array of elective offers.

Simon Wins at International Graduate Competition Lingling Chen ’12S (MS), Irina Ivanova ’13S The IGC brought together six pre- solution to a complex problem. (MBA), Mahendra Goyal ’13S (MBA), and mier business schools in a competition Facing stiff competition from Cana- Rajesh Chaudhary ’13S (MBA) placed first designed to build relationships and chal- dian, Finnish, Danish, and Australian at the International Graduate Competi- lenge students to apply the skills learned schools, the Simon team, coached by tion (IGC) from April 28–May 4, 2012, at in the classroom to a real-world business professors David Tilson and Abraham HEC in Montreal. Their efforts pointed a case. Participants had just 48 hours to Seidmann, offered a multifaceted solution global spotlight on the Simon School, and act as multidisciplinary consultants to a that involved marketing, international once again showcased the excellence we real company, and present strategy, human resources management, have come to expect from our students solutions for creating an and finance. and faculty. integrated and workable

Harley-Davidson CEO Delivers Kalmbach Lecture K eith Wandell, president and CEO of Harley-Davidson, was among a group of top management leaders to participate in the Kalmbach Executive Lecture Series. Wandell discussed “The New Future of Harley-Davidson,” about the company’s revamped strategic plan.

John Smillie, Istockphoto Simon Business ◾ Fall 2012 7 Upfront

Simon Selected for First Test of Watson

Simon was selected to host the inaugural IBM Wat- Twenty-five MBA students competed in teams A panel of judges son Case Competition on May 18, 2012. The competi- and submitted seven proposals outlining how Wat- comprising faculty, tion develops new ideas for harnessing IBM Watson son’s technology could be applied to challenges in regional business technology to solve daunting societal and business the transportation, energy, retail, and public sec- leaders, and IBM challenges, while helping students advance technol- tor industries. Winners were selected by a panel of executives deter- ogy and business skills for jobs of the future. judges. First place went to “Managing Data in the mined the winners Watson, named for IBM founder Thomas J. Eye of a Storm,” using IBM Watson technology to of this first test Watson, was built by a team of scientists to combine weather-related data and the latest cen- of IBM’s Watson accomplish a grand challenge—a computing sus numbers to help organizations better prepare technology. Above: system that rivals a human’s ability to answer for crisis administration and allocation of resources. students and questions posted in natural language with speed, Students on the winning team included 2012 Simon judges join hands accuracy, and confidence. The Watson technology graduates Christian Beck, Enric Coll, Umair Munir, and to create the IBM represents a new class of cognitive systems that Jamiee Saxton. Second- and third-place winners Watson logo. can quickly sift through large volumes of Big Data, proposed ideas to mine applications to improve the and apply advanced analytics to improve decision- effectiveness of natural gas, petroleum, and other making across a variety of cases and industries. natural resources exploration, and streamlining the customs process for airports to reduce wait times.

Simon Students Win Hope Leads State Games Honors in Syracuse Vincent. W Hope, lecturer in marketing, is Simon’s student team of Lingling president of Empire State Sports Founda- Chen ’12S (MS), Sandesh tion Inc., recently formed to privatize and Gannavaram ’12S (MBA), Hafeeja assure the continuation of the Empire Jameela ’12S (MBA), and Muhammed State Games, a 30-year Olympic-style Yildirim ’12S (MS) won third-place tradition in New York State for outstand- honors at the March 2012 case ing high school and older amateur competition at the Whitman School of athletes. Hope also founded and is past Management at Syracuse University. president of Honor Flight Rochester.

8 Fall 2012 ◾ Simon Business Annette Dragon, AP Photo/Tony Talbot Simon Hosts Graduate Business Forum

Student leaders from the world’s top business schools gathered at Simon March 29–31 for the 2012 Graduate Business Forum Conference. The annual event brings together incoming and outgoing presidents of student-run graduate business councils from around the world. An impressive list of senior-level executives and world-class scholars participated, including: Jeffrey S. Born- Mark Ain Business Model Competition stein, senior vice president, General Aspiring student entrepreneurs pre- for sutures in blood vessels. The teams in- Electric, and CFO of GE Capital; Aru- sented their business models to a panel tend to use their prize money to help take nas Chesonis ’91S (MBA), founder of of judges during the Mark Ain Business their businesses to the next step. This is PAETEC Holding Corp., and chairman Model Competition on May 16, 2012. the sixth year for the competition, made and CEO of Sweetwater Energy (see This year, 22 interdisciplinary teams, possible through the generous support of feature on p. 32); Edward L. Deci, pro- representing the Simon School of Busi- Simon alumnus Mark S. Ain ’67S (MBA), fessor of psychology and Gowen Pro- ness, the College of Arts and Sciences, founder and chairman of Kronos Inc., fessor in the Social Sciences, University the Hajim School of Engineering and Ap- who served on the judges’ panel along of Rochester, and the prime subject of plied Sciences, and the Eastman School with Joseph Abrams ’74S (MBA), serial the bestselling book Drive by Daniel of Music, submitted business plans. entrepreneur and consumer technology Pink; University trustee Bernard T. Fer- The first-place prize ($10,000) went expert; Edward J. Ackley ’53 (BS), ’64S rari ’70, ’74M (MD), dean of the Carey to LighTip (pictured), a device that im- (MS), owner and president of The Filter Business School at Johns Hopkins Uni- proves the treatment of skin cancer and Store Plus in Mendon and former CEO of versity, chairman and founder, Ferrari pre-cancer. Second place ($2,500) was Consler Corporation (now Consulting, past head of health care awarded to Mono-Mano, a recumbent owned by Graver Tech- for McKinsey & Co., and the author of cycling control system for people with nologies); and Daniel G. the bestselling book Power Listening; the use of only one arm; and placing Lazarek ’91S (MBA), Justin Menkes, author of Executive Intel- third ($1,000) was TrueSeal, a medi- CFO, COO, and co- ligence: What All Great Leaders Have, cal device that eliminates the need owner, The Access which was on The Wall Street Journal Group. 2005 bestseller list; and Michael B. The Mark Ain Business Model Competition Mark Ain Polk, CEO of Newell Rubbermaid. fosters the spirit of innovation and entre- Speakers discussed how being the preneurship. Pictured left to right: “right size” organization can have a pos- Cheng Shu, Luis Soto, Cristina itive impact in today’s business markets. Canavesi, Nebiat Kidane.

Simon Enrollment on the Rise Simon School Enrollment Simon enrollment continues to increase. During the 2011–2012 academic year, 582 students were enrolled in the full-time, part-time, 2011–2012 1,129 and accelerated MBA; 140 in the Master of Science program; 26 in 2010–201 1 1,076 the Master of Science in Accountancy program; 115 in the Master of Science in Finance program; 49 in the Master of Science in Finance 2009–2010 955 in New York City program; 21 in the Master of Science in Technical Entrepreneurship and Management program; 88 in Rochester’s 2008–2009 945 Executive MBA program; 59 in the Rochester-Bern Executive MBA program in Switzerland; and 53 PhD students. 2007–2008 989

Annette Dragon, Ria Tafani Simon Business ◾ Fall 2012 9 Upfront

Commencement 2012 Celebrates Community

The Simon School held Commencement ceremonies on Sunday, June 10, in Kodak Hall at the Eastman Theatre. A total of 233 full-time and part-time MBA, 46 Execu- tive MBA, 206 MS, and two PhD students received their degrees. In addition, the Simon School’s Executive MBA Program in Bern, Switzerland, graduated 28 students on June 22. Graduation Weekend began on Friday, June 8, with the Beta Gamma Sigma Lun- cheon featuring speaker and business initi- ate Ram Sandaram ’91S (MBA), partner, Goldman Sachs. Later that afternoon, Simon hosted the University and the Simon School as an advi- Amy Tait and a “Market Regulation Discussion: Dodd-Frank and sor, leader, and generous philanthropist. He and his Evans Y. Lam Sarbanes-Oxley Impact” with University president wife, Susanna, are endowing the Susanna and Evans address Simon and Simon professor Joel Seligman, and Simon pro- Y. Lam Professorship at Simon. A charter mem- graduates at Com- fessors Clifford W. Smith Jr. and Jerold L. Zimmerman. ber of the George Eastman Circle and a frequent mencement 2012. On Sunday, Richard Sands received the Dean’s host and mentor to Simon students, Lam serves on This year Simon Medal and delivered the Commencement address. the University of Rochester Board of Trustees, the celebrated 233 Sands, chairman of Constellation Brands, a top pro- Simon National Council, and Executive Advisory MBA graduates, ducer and marketer of alcohol beverages and the Committee. 46 Rochester world’s largest premium wine producer, served as Amy Tait ’85S (MBA) received the Distinguished Executive MBA CEO of the company from 1993 to 2007. A gener- Alumna Award. A graduate of the Executive MBA graduates, 206 ous benefactor of both the University and the Simon program, she is CEO and co-founder of Broadstone MS graduates, and School, he established the Sands Leadership Lecture Real Estate LLC, a commercial real estate invest- 28 Executive MBA Series to advance the science and teaching of leader- ment, management, and development agency. Tait graduates from ship at Simon. Sands is a member of the University has demonstrated exceptional leadership by provid- Bern, Switzerland. Board of Trustees and the Simon School Executive ing managerial and entrepreneurial innovation in Advisory Committee. the real estate sector; she is also deeply committed Evans Y. Lam ’83, ’84S (MBA) received the David to the vitality of our community. Tait is a member T. Kearns Medal of Distinction. Lam is senior vice of the Simon School National Council and Execu- president of investments and senior portfolio man- tive Advisory Committee, and serves on the board of ager at UBS Financial Services Inc. in Pasadena, CA. directors for Home Properties Inc. as well as several Previously, he was senior vice president of wealth community organizations, including the United Way management and senior portfolio manager at Citi- of Greater Rochester and the M&T Bank Regional group Smith Barney and held senior-level positions Advisory Board. at Toronto Dominion Bank and Deutsche Bank. A native of Hong Kong, Lam is closely connected to

Simon Innovators Win CEO Speaks with Students At the first-ever Rochester 2012 Startup David H. Klein, chief executive officer of the Weekend, Sophia Mitchell ’12S (MS) and Lifetime Healthcare Companies, spoke to Tokhir Tillyaev ’12S (MBA) earned top Simon students at a Kalmbach Executive Lec- prize for In Time, their initiative that would ture in May 2012. Klein is pictured at left with enable faraway friends and relatives to Gerard J. Wedig (center), associate professor view funeral services via online video. of business administration, and Ronald W. Tillyaev credits support received from the Hansen (right), senior associate dean for pro- Center for Entrepreneurship for much of gram development and William H. Meckling his team’s victory. Professor of Business Administration.

10 Fall 2012 ◾ Simon Business Annette dragon, John Robortella Simon In the News

“Metropolitan population is a much better measure since that accounts for the growth of suburbs over the last six decades. On that broader measure, greater Rochester has been growing and is now the second largest metropolitan economy in New York.”

—Mark Zupan, dean of the Simon School, in a January 18, 2012, Wall Street Journal Letter to the Editor, “Rochester Wasn’t Eastman Kodak’s Fatal Problem,” refuting Rich Kaarlgard’s January 13, 2012, WSJ opinion-editorial, “Kodak Didn’t Kill Rochester, It Was the Other Way Around.” “While no one here is glad to see Kodak “Economists, political go bankrupt, it’s hardly the catastrophe scientists, and many imagine.” sociologists have long suffered from an —Duncan T. Moore, vice provost for entrepreneurship, Rudolf and Hilda Kingslake Professor of Optical Engineering, professor of biomedical engineering, professor of business administration, academic inferiority and area coordinator, Simon School Entrepreneurship, wrote on Kodak’s bankruptcy and its impact on Rochester in an opinion-editorial, “No Rust in Rochester,” in The New York Times, complex: physics on February 2, 2012. envy. They often feel that their disciplines “You can do all the advertising and should be on a par promotion you want, but if people don’t with the ‘real’ sciences buy into the message, the needle’s not going and self-consciously to move.” model their work on —George Cook, executive professor of marketing, as quoted in a March 21, 2012, Reuters article, “Electric Car Revolution Faces Increasing Headwinds.” them, using language (The article appeared in several other national media outlets.) (‘theory,’ ‘experiment,’ ‘law’) evocative of “You could say the AMT is working ‘too well’ physics and chemistry. because more taxpayers who don’t consider But we believe that themselves rich now have to pay it each year.” this way of thinking is —Jerold L. Zimmerman, Bittner Professor of Business Administration and professor of badly mistaken and accounting, was quoted in an April 2, 2012, CNBC.com story, “AMT to Hit Record Number of Taxpayers This Year.” detrimental to social research.”

“It’s very creative, and my thought is if it gets off the —David Primo, associate professor ground, others will follow.” of political science and business administration, and his co-author, Kevin —Abraham Seidmann, Xerox Professor of Computers and Information Systems and Operations Clarke, associate professor of political Management, was quoted in a Dow Jones Newswires/The Wall Street Journal science, wrote a March 31, 2012, op-ed for a March 21, 2012, article, “Sears Offering Personal Shopping with Web’s Help.” for The New York Times, “Overcoming (The story appeared in many other national media outlets.) Physics Envy.”

Simon Business ◾ Fall 2012 11 Opinion

Our Fragile Fiscal Future

A major corporation is bleeding red ink, facing weak the fiscal gap more than doubles from 4.8 percent of growth prospects for the foreseeable future, and en- GDP to 9.8 percent of GDP. during skyrocketing production costs. What should A business perspective clearly calls for immedi- the firm’s CEO do? You might answer, “Restructure ate action, but politicians who are re-election driven to cut costs.” Or perhaps you’d focus on ways to im- see no hurry to act. After all, the CBO’s “fiscal gap” prove growth prospects. One answer you probably charts can’t compete with ads like the one depict- wouldn’t give is, “Nothing.” Yet that’s the ing House Budget Committee chairman Paul Ryan, answer from Washington when it comes since named Mitt Romney’s running mate, pushing A business perspective to dealing with the federal government’s an elderly grandmother off a cliff after Rep. Ryan calls for immediate budget problems, and it highlights the proposed Medicare reform. Left to its own devices, difference between the world of business Congress has little incentive to take on difficult is- action in the face and the world of politics. sues; for this reason, an external disciplining mecha- of a fiscal crisis. But Federal government spending has in- nism is necessary. in the world of politics, creased by 50 percent in the last decade, Credibility was one of the criteria Standard & where decisions are adjusting for inflation. Meanwhile, fed- Poor’s considered when deciding whether to down- eral revenues have actually declined in grade US debt last year, so it is important that any driven by re-election recent years, causing the United States reforms coming out of Washington actually have a concerns, many see to run massive deficits that are, in turn, chance of being implemented in both the near term no hurry to act. driving up the federal debt. The problem and the long term. In other words, they need to be is only going to get worse. The nonpar- credible and sustainable. By David M. Primo tisan Congressional Budget Office esti- It is difficult to achieve credibility and sustainabil- mates that federal revenues are projected ity when a future Congress and a future president can to stay at around 20 percent of GDP as programs like rewrite the terms of any agreement written today. Medicare grow significantly. According to CBO esti- You might think that Congressional budget rules are mates, the federal government will consume nearly a viable solution. Unfortunately, Congress has shown 75 percent of our economic output by 2085. it is perfectly willing to write down internal or statu- Clearly, the current path is not sustainable, as the tory rules and then ignore them or change them economy will implode before the government grows when the going gets tough. In the long run, then, the to that size. And here lies the tension between poli- best option for credible and sustainable fiscal disci- tics and economics. A business perspective on this pline comes from constitutional budget rules limiting Left to its own devices, Congress has little incentive to take on difficult issues; for this reason, an external disciplining mechanism is necessary.

problem would say, “Act now!,” and for good reason. spending or revenues. It is much harder to change or Consider the immediate permanent change in ignore a constitutional rule, and that makes constitu- spending and/or revenues that are needed to stabi- tional budget reform more credible. lize (not reduce) the federal debt—what the CBO In the short run, one might think that the best calls the “fiscal gap.” If adjustments are made begin- hope for disciplining Congress comes from the ning today, some mix of permanent spending reduc- markets. But look at the reaction to the S&P’s 2011 tions or tax increases totaling 4.8 percent of GDP is downgrade of US debt—a big yawn. Meanwhile needed to stabilize the debt. (Government spending investors are running toward, not away from, US is about 25 percent of GDP and revenues are about 18 bonds, thanks to Europe and an abiding belief among percent of GDP.) The longer the government waits, investors that the country will figure a way out of this the more drastic the cuts to spending or increases mess. Today’s relative investor optimism about the in taxes required to stabilize the country’s finances. US provides cover for politicians who do not want For instance, if adjustments are delayed until 2025, to make difficult choices, with the end result being

12 Fall 2012 ◾ Simon Business that the country likely will need to be in a crisis situ- imperfect, fiscal reform plan. Or, perhaps a second- ation before action is taken. A crisis is a terrible time term President Obama will become willing to take for reform—Dodd-Frank financial reform legisla- political risks and put the interests of the country tion being a recent example—yet it is increasingly above political considerations for the sake of his leg- hard to imagine how serious fiscal changes will occur acy. In the absence of strong presidential leadership, otherwise. though, the United States will endure more short- What about the November elections? Is there term fixes that are a Washington specialty, and the hope for changing the political calculus sufficiently federal government will continue the march toward enough to produce the long-range reforms, most fiscal crisis. s notably changes to entitlement programs, needed to place the government on sure financial footing? David M. Primo is associate professor of political Maybe, but change has to start at the top. Perhaps science and business administration at the University a President Romney will be influenced by his vice of Rochester and the author of Rules and Restraint: president, since Paul Ryan is one of the few Wash- Government Spending and the Design of ington politicians who has proposed a clear, if Institutions.

Corbis Simon Business ◾ Fall 2012 13 Simon Goes Global Global business leaders gather to identify the challenges and opportunities of emerging markets. By Jim Ver Steeg

14 Fall 2012 ◾ Simon Business or a company to be successful in to- Corning Incorporated, Lockton Insurance, and IBM While the world’s day’s global economy, it must recognize met with faculty and staff from the School to discuss emerging markets and capitalize on new trends in emerg- challenges—and new solutions to hiring international are quickly changing markets. To stay ahead of the world students educated in the United States. ing the game of curve, international organizations look Simon School dean Mark Zupan welcomed the recruitment and to a talented and diverse workforce to representatives from some of America’s most influ- retention, Simon’s Fkeep them competitive. But in a rapidly changing ential companies. “There are tremendous oppor- international landscape, where developing countries now have tunities for employers in the United States, and for profile creates an burgeoning economies and thriving industries of our students,” Zupan said. “Yet historically, when it opportunity for their own, recruiting and retaining skilled interna- comes to job placement, being international has been the School and its tional employees is the next great challenge for many viewed as a liability. But when you look at imports partner organiza- American-based businesses. and exports and how they’ve grown over the past 80 tions. For more To address some of the issues and opportunities years, they have a lot to do with growth in emerg- information on facing companies hiring international talent, the ing markets. Those are the very markets from where Simon’s Emerging Simon School of Business recently held its first Con- these students are coming. That trend is not abating.” Market Program, ference on Global Talent Acquisition. With a focus With US companies facing growing economies contact Simon’s on developing leaders for business continuity and and industrial advances from countries like China, Career Manage- growth, representatives from PwC, Actuant, Dell, India, and Brazil, Zupan considers the Simon School ment Center.

IStockphoto Simon Business ◾ Fall 2012 15 “We see a lot of success with “Extended US experience used to be [international students] working here what you had to get to move up the in the United States for five or six ranks in home country. That’s not the years, then going home.” case anymore. Everything is being Alicia Davis, director of global finance leadership turned on its head.” and development, Dell Robert Park, executive director of corporate relations and career management, Simon School of Business

uniquely qualified to meet their staffing challenges. “We’re the is being turned on its head. In fact, what we’re finding now is, most internationally diverse of any of the top-tier schools,” he students feel if they don’t go back right away, they could be at a says. “We’re an intellectual Ellis Island in terms of the students disadvantage.” we attract. The question is, how can we make that a better asset One possible solution comes from Actuant Corporation, a for your organizations and for them?” $1.5 billion diversified industrial company with operations in To that end, the Simon School continues to position itself more than 30 countries. According to Actuant chief operating as a main talent supplier in the international pipeline. In fact, officer Mark Goldstein ’78, a rotational model where new gradu- students from emerging market countries, who are educated ates work in the United States before transferring home seems at Simon and want the experience of working for a US-based to be the right approach. “The first thing we want to be able to multinational company before returning home to continue do is get the graduate to know our company and the way we do their careers, seem to be ideal hiring candidates for many business,” he says. “In that respect, the one- to two-year stint in large companies. North America or Europe is critical. Then going back to their Wynton Norvel-Dillard, human resources manager at Corning home country with a better understanding of our company is Incorporated, understands the value of a US-trained and edu- really the way we designed the program to help grow the busi- cated employee who also has a deep cultural understanding of ness and sales.” his or her home country. “For Corning, China and India are our Dell’s director of global finance leadership and developm ent, fastest growing areas for recruiting,” she says. “For a long time, Alicia Davis, agrees. “We see a lot of success with [international we were simply recruiting in-country. Now we’re looking for students] working here in the United States for five or six years, business graduates in the US who want to go home to China.” then going home,” she says. It is a model that is steadily replacing It’s a trend all the companies in attendance recognized and American expatriate workers spending years, and much more of knew well. the company’s money, overseas. According to Robert Park, executive director of the Simon And as the expatriate employee model quickly becomes costly School’s Career Management Center, finding graduates who and outdated, many corporations are exploring options like Ac- want to go back to their home country is much easier than it tuant’s rotational program for the value an international em- used to be. “What we’re seeing is a shift,” he says. “Extended ployee brings. US experience used to be what you had to get to move up the “IBM is a great company in that it is a globally integrated en- ranks in home country. That’s not the case anymore. Everything terprise,” said Ray Infarinato ’78, ’82S (MBA), who is from that

16 Fall 2012 ◾ Simon Business “For Corning, China and India are our “We want our people to have fastest growing areas for recruiting. international experience, whether it For a long time, we were simply is moving from the United States to recruiting in-country. Now we’re another part of the world or studying looking for business graduates in the here and going back to their home US who want to go home to China.” country; the perspective is invaluable.” Wynton Norvel-Dillard, human resources manager, Ray Infarinato ’78, ’82S (MBA), learning integration manager, IBM Corning Incorporated

company’s Leadership Development office. “One thing I tell the all the goods and services we enjoy in the United States. They students, and often our employees, is that it’s important to be a have greater wealth, so we see their workers demanding financial globally integrated individual. We want our people to have inter- services, insurance, and real estate.” national experience, whether it is moving from the United States Mark Goldstein agrees. “Seventy percent of economic growth to another part of the world or studying here and going back to over the next 10 years is going to be in emerging markets. If their home country; the perspective is invaluable. If an employee you’re not there with a team that can help build that, and have is from somewhere else in the world, that’s all the better.” the skill sets you need to build those businesses, you will not be successful long term,” he says. “But Actuant is committed to it. f course, even with rotational programs that start MBA We are excited about it. This model will help change the game and MS graduates with jobs in the United States or for us. It will reduce some of the turnover we have when employ- Europe, and the inherent value of a globally integrated ees go back to their home countries.” employee, getting them to return home to China, In- Goldstein also sees great promise in the forward-thinking so- Odia, or Brazil does have its challenges. lutions being explored by the Career Management Center. “I’m Many young professionals struggle with US student loans, thrilled with the program,” he says. “What Simon is doing to un- and the salaries they could command in their home countries derstand the needs of businesses, and to bring us together with may not be nearly enough to cover the cost of that debt. “From talented students, serves a need and creates an opportunity at a student perspective, you spend $100,000 plus two years’ lost the same time.” income to study in the US,” said Ashish Kohli of Simon’s Career As a result of the conference, Simon is launching a highly Management Center. “I think the challenge is after spending that selective Emerging Markets program. Geared toward career ac- kind of money, you want to start off making $70,000 to $100,000 celeration for MS and MBA candidates who exhibit tremendous and not start at the $25,000 you get in China or India right now.” potential, the program will help cultivate and identify graduates But lower salaries are regularly giving way to other opportuni- who could become future business leaders in the world’s emerg- ties in emerging markets. According to Delores Conway, associ- ing markets. ate dean for the Simon School’s masters programs, there is a new “We anticipate that this will create a prequalified inventory of day dawning. “There are macro changes going on in the global candidates for our employer partners,” says Robert Park. “This economy,” she said. “China, rather than being the factory of the will help multinational companies find the most promising can- world, is turning to its own domestic economy. Now they need didates when hiring international talent.” s

Annette Dragon Simon Business ◾ Fall 2012 17 18 Fall 2012 ◾ Simon Business Few business decisions affect the bottom line like pricing, leaving companies eager to take the guess work out of the equation. By Jim Ver Steeg

Price: The amount of money or goods asked for, or given in exchange for something else. It is one of the most critical decisions business owners and company leaders can make—what to charge for your goods and services. And while examples of pricing missteps like the ill-fated subscription increase by Netflix, or Bank of America’s five-dollar monthly fee fiasco, readily make headlines, smart decisions that are born from analyzing a wealth of market data and information go mostly unnoticed by both the consumer and the media’s 24-hour news cycle. Businesses that master the discipline of pricing effectively combine the implicit understanding of their industry with cutting-edge techniques that are designed to keep them at least one step ahead of the competition. To help meet the demand for pricing experts, the Simon School opened its Center for Pricing five years ago and introduced a first-of-its kind MBA pricing track to train business professionals who could help navigate companies through one of the most important, but least understood, functions of commerce.

Simon Business ◾ Fall 2012 19 According to Pricing Center director Richard Cardot ’08S (MBA), it’s the Simon approach to learning that sets its pricing program apart from the rest. “Within pricing there are two worlds,” he says. “While other courses of study look only at a behavioral or psychological approach to try to understand or predict consumer patterns, ours is data and analytics driven. We’re teaching students to make pricing decisions based on a fundamental understanding of economics.” It’s an approach that is paying off for Simon graduates. “Big Data is driving decisions like it’s never done before,” says Car- dot. “That’s what pricing is—it’s all about what data you have available and getting someone in place who knows how to read it in order to make better decisions.” Of course, exclusiv- ity and being the only one suited up and on the playing field Simon School help. “We’re the only school that has a pricing track as part of an MBA program,” he says. “If I benchmark against other and Vendavo schools, they have only one pricing course, while others have A Unique Partnership none. We’re uniquely focused in terms of our breadth in offer- Based on a Shared Goal ing this program.” Simon’s Center for Pricing and Vendavo, a leading erhaps no company in recent months knows better provider of solutions for more effective pricing, about the pitfalls of pricing than JC Penney. With share a goal to provide pricing expertise to a global great fanfare, the company announced its “fair and community of businesses. Simon and Vendavo square” pricing. The retailer promised no more partner on a number of fronts ranging from coupons or confusing markdowns, and pledged workshops, presentations, pricing events, and honesty over shrouded costs to consumers. The development of an innovative business case to Presult? Revenue dropped 20 percent for the first quarter com- support their individual and shared objectives. pared to last year, customer traffic fell 10 percent, and the com- This year, Vendavo and Simon’s Center for pany lost $163 million. Pricing are co-developing an innovative business Jeanine Miklós-Thal, assistant professor of economics and case. Students will solve real world business-to- marketing, recently discussed the JC Penney pricing challenges business pricing problems using the Vendavo with her class. “Demand for fashion goods is notoriously hard solution. The case is a complement to the Simon to predict,” she said. “A markdown policy enables a retailer to School’s pricing curriculum and provides a hands- maximize revenue in the face of demand uncertainty and lim- on learning experience for its students. ited inventory. If an item turns out to be a hit, the retailer can “Vendavo recognizes the importance of sell out at a high price; but if it doesn’t, the retailer has the flex- integrating its suite of pricing tools with the ibility to offer discounts. While everyday low pricing may work Simon School curriculum. Our partnership with the Simon School provides valuable experience for the students who will lead pricing functions in businesses throughout the world. It is a win “If I’m an entrepreneur, for Vendavo’s customers, the Simon School, and Vendavo,” said Neil Lustig, CEO of Vendavo. there’s only one way to

About Vendavo make money. If I have a Vendavo is the leading provider of price great idea and price it management and optimization solutions for large enterprises worldwide. The company’s poorly, it can be a great solution drives bottom-line results by giving businesses true enterprise-wide control of their failure. If it’s a mediocre idea entire pricing process. To learn more, please visit www.vendavo.com. and I price it well, it could be a tremendous success.”

20 Fall 2012 ◾ Simon Business Netflix Takes a Tumble Few pricing missteps stand out as clearly as the 2011 decision by Netflix to separate its Internet and mail rental services. The 60 percent rise in prices caused widespread consumer backlash, forcing the CEO to issue a formal apology and announce a reversal of their original decision. In less than six months Netflix lost over 800,00 subscribers and saw the value of its stock drop nearly 77 percent. The company is still recovering.

Closing Price September 18: On his $298.73 $300 blog, CEO Reed Hastings July 13 apologizes for poor October 24: Netflix $250 communication, writing announces that it that he “slid into lost 800,000 U.S. December 22: subscribers in the Hastings’ $200 arrogance based upon July 12, 2011: Netflix past success.” July–September stock options quarter, ending with for 2012 are $150 splits its mail and Internet video rental 23.8 million. cut in half, to services into two $1.5 million. $100 September 1: The options, effectively price increase takes raising prices by 60 $50 effect for existing percent for customers customers. October 10: The company who want both. $0 backs away from splitting the November 21: The two services but keeps the company announces Volume in millions of shares new price structure in place. it will raise $400 $69.29 December 30 50 million by issuing debt 40 and selling its stock. 30 20 10

JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER

well for basic staples, markdown pricing is a proven strategy for So as startups and small businesses provide the fuel for the fashion goods.” nation’s economic growth, it is critical they have professionals Of course, as one of the nation’s largest retailers, the JC Pen- who can analyze market data and use sound economic theories ney story highlights just some of the complexity around pricing to help make pricing decisions. The days of moving a long-term decisions and how they affect the customer, the business, and employee, who is simply familiar with a company’s product or the bottom line. industry, into a pricing role are quickly coming to an end. And, Greg Shaffer, Wesray Professor of Business Administration and as experts point out, the ability to sell a product or service is professor of economics and management, and of marketing, un- considerably different from the expertise required to determine derstands well the risks and opportunities associated with pric- its value and price in the marketplace. ing. “Doing it poorly is easy,” he says. “Doing it well is a challenge. Still, decisions in pricing, no matter how sound or how well There is a growing and largely unmet demand for talented gradu- planned, have a direct impact on the buyer. One of the most criti- ates who have the know-how and training in pricing techniques cal components of pricing, according to Cardot, is change man- and strategies to improve bottom-line profits.” Shaffer’s electives agement and how that price change is framed and communicated helped form the foundation of Simon’s Pricing Center and Pric- with consumers. “Saying ‘Hey, I want to make more money’ is ing track. not necessarily a winning strategy for any company,” he notes. It By including coursework that focuses on both business-to- was a hard lesson learned by Netflix and Bank of America, and business and business-to-consumer pricing, the pricing track is it’s a mistake most businesses simply cannot afford to make. positioned to study issues around constrained supply, demand For more information about the Simon School’s Center for uncertainty, advance selling, pricing on the Internet, and mark- Pricing, the MBA Pricing track, or the new masters program in down management. pricing, please contact Rick Cardot at richard.cardot@simon. “The School also does a lot with entrepreneurship,” says rochester.edu, or call (585) 276-3381. s Cardot. “If I’m an entrepreneur, there’s only one way to make money. If I have a great idea and price it poorly, it can be a great failure. If it’s a mediocre idea and I price it well, it could be a tremendous success.”

S teVE Boerner Simon Business ◾ Fall 2012 21 Simon School

Welch+ Allyn

How a successful medical equipment company and the Simon experience work together to form a winning partnership By Joy Underhill and Sally Parker

22 Fall 2012 ◾ Simon Business Tiffany Moon, Scott Gucciardi, and Welch Allyn CEO Steve Meyer (center) are three Simon alums making their mark at the medical equipment company.

John Smillie Simon Business ◾ Fall 2012 23 hen Steve Meyer ’93S (EMBA) was a capability and development. “In fact, this past year we sent double new father with a demanding work the usual number because we had so many qualified candidates.” travel schedule in the early ’90s, he The nomination process begins with a set of guidelines about decided to go back to school for his what the company is looking for in an MBA candidate. MBA. To fit his studies into his busy “We want people with an interest and aptitude for executive life, he wanted a nearby program with and management growth,” Georgianna says. “We also seek a a strong reputation. solid track record of at least five years of professional experience According to Meyer, his decision to with increasing responsibility and a minimum of two years with enroll in Simon’s Executive MBA program was a smart one. Welch Allyn, plus other factors.” W“I was at the point in my career where I needed to master cer- Company executives consult with staff to decide whom to tain business disciplines,” he says. “What I learned about agency nominate and make sure managers understand the commitment theory has always stayed with me, plus training in finance, which required by their employees to pursue a degree. Nominees are I didn’t value quite as much at the time but have relied upon notified and invited to learn more about the program, and then ever since.” each candidate is interviewed and evaluated for suitability. Today Meyer, as president and CEO of Welch Allyn, a Ska- Scott Gucciardi ’00S (EMBA), executive vice president and neateles, NY, medical diagnostics instruments manufacturer, chief marketing officer at Welch Allyn, was drawn to the Simon makes sure others have the same opportunity. Known for a firm program after hearing about learning experiences from other commitment to employees and customers, for two decades Simon alumni and witnessing their career growth. the family-owned business has educated many of its managers With an undergraduate degree in engineering, Gucciardi through the Simon School Executive MBA program. lacked a background in finance, economics, and investment and Meyer was one of the first. Within three months of earning his business strategies. He knew such knowledge could make him an MBA, he was applying what he had learned. “I was assigned to all-around more effective team member as Welch Allyn’s pres- be the general manager of a newly acquired Welch Allyn com- ence grew internationally. By the time he graduated from Simon, pany,” he says. “It was the best beginning I could have hoped he had acquired those skills and was better equipped to help for.” According to Meyer, his education gave him confidence in a with innovations focused on customer needs. business he knew and loved. “I began with Welch Allyn in 1990 in engineering but was Welch Allyn has sent roughly 30 employees through Simon’s soon drawn to product and business management disciplines,” graduate programs since the late ’90s. The relative proxim- he says. “Today I lead the global marketing team, which drives ity of the company—about 80 miles from campus—makes the company’s customer-centric product and communications commuting possible. strategy. The skills I learned at Simon have helped me apply my “We don’t have a fixed number of people we send to Simon business acumen to important business strategy and investment each year,” says Laura Georgianna, senior director of organization trade-off decisions.”

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24 Fall 2012 ◾ Simon Business Welch Allyn and director of the Bradley Policy Research Center at Simon. “One of the benefits of Welch Allyn sells its medical diagnostic products—from ophthal- moscopes and otoscopes to examination lights and patient vital- having so many Simon signs monitors—all over the world. School alumni in the ranks Simon provides occasional non-credit seminars at Welch Allyn for executives to learn more about doing business in inter- is a shared background national medical markets. “Chinese regulations, with respect to approval of medical and approach to problem- products, restrictions on importations of medical equipment, manufacturing oversight, and distribution channels, require solving. It makes for modification of the business model,” says Hansen. stronger and more Tiffany Moon ’08S (MS) who manages marketing initiatives, product launches, and e-mail communications to distributors cohesive teams.” and customers, started at Welch Allyn shortly after graduation. “My first boss at Welch Allyn was a Simon alumnus, and he “One of the benefits of having so many Simon School alumni recognized my potential with the company,” says Moon, a mar- in the ranks is a shared background and approach to problem- keting communications account executive. “In my graduate solving. It makes for stronger and more cohesive teams,” says studies, I was able to more fully understand what customer focus Michael Ehrhart ’00S (MBA), executive vice president of product really means, which is huge in this company. At Welch Allyn, development. I’ve had the chance to put my theoretical knowledge to work Ehrhart and Gucciardi have met frequently to collaborate by examining all aspects of customer relationships—needs, de- and develop products. “Going through the same MBA program mands, requirements, and pricing.” certainly does help,” Ehrhart says. “Scott, Steve, and I are able A strong brand history, partnered with continual evaluation to use similar language and thought processes when we worked of future needs, gives Welch Allyn an advantage in the industry. through challenges.” Moon says her competitive edge comes from earning her degree While they are in school, Welch Allyn employees also are at Simon. “The combination of coursework and practical appli- exposed to different perspectives of the medical marketplace; cation at Welch Allyn has helped me more fully understand how some of their classmates are University of Rochester Medical to successfully sell products in this market.” s Center employees. “Some of the company’s biggest challenges come in international markets, particularly China,” says Ronald W. Hansen, who is the William H. Meckling Professor of Business Administration

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Welch Allyn Simon Business ◾ Fall 2012 25 A Man and His Camera By Jim Ver Steeg bring a soothing smile to people’s faces,” Not many of us will get up before dawn to he says. “That’s really why I do it. I don’t pursue our hobbies. But if you find your- take gritty photographs. This is just a way self on some misty morning hiking trails of looking at things and being artistic. in the Finger Lakes, you might just run Does it soothe? Does it make somebody into Thomas H. Jackson, Distinguished smile? That’s all I’m looking to do.” University Professor, president emeritus, To the question if there are any exotic and Simon professor. locales he would like visit with his cam- Photography has been Jackson’s cre- era, Jackson says, “It’s not that I have to ative outlet since he was a teenager, but go to someplace that is a photographer’s during his career the pastime played an- haven. Part of what I like about photogra- other important role. “While I was presi- phy is seeing how much I can extract out dent I would set aside a weekend morning of what’s around me—right here in Roch- where I’d wake up at four-thirty or five ester, New York.” and drive down to one of the Finger Lakes Do you have photos you would like to to be there when the sun rose,” he says. share? E-mail them to us at marketing@ “It gave me a way of getting away from simon.rochester.edu, and they could be other things for a few hours. I’d get in the included in an upcoming Simon School car in the dark, drive someplace, wait for publication. s the sunrise, and take some pictures. Then I’d head home to see what I could do with Many know Thomas Jackson for his exemplary them. It was a great way to get away from academic career and tenure as president of the rest of the world for a while.” the University of Rochester. But far fewer know And while he is a fan of many differ- him as a man with a passion for photography ent types of photography, Jackson likes and an eye for capturing the sublime beauty in to keep it simple when it comes to his nature. Through his lens, we get a glimpse of own work. “I just hope [my photographs] the man and the world he loves.

26 Fall 2012 ◾ Simon Business

John Smillie, Thomas H. Jackson Simon Business ◾ Fall 2012 27 Innovation to the Re scue

Startups and small- to mid-sized companies are fueling growth in the new economy. By Charla Stevens Kucko

28 Fall 2012 ◾ Simon Business “Much of what I stumbled into by following my curiosity and intuition turned out to be priceless later on.”—Steve Jobs, Commencement Address, Stanford University, 2005

Human capital begins with an idea, and when it is de- The University has a long history of fostering entrepreneur- ployed, magical things occur. Any entrepreneur knows suc- ship, dating back to the early 1900s with the partnership be- cess doesn’t happen overnight; it is often the result of many tween then president Rush Rhees and George Eastman, whose years of hard work and multiple brushes with failure. When philanthropy made possible a plethora of possibilities on a local success does come, however, the power of human capital is and national scale. That entrepreneurial spirit has also been nur- clear, fueling more innovation, which in turn creates jobs and tured at the Simon School. The first course in Entrepreneurship economic growth. was taught at Simon in the ’70s by the late William J. Stolze, one In an increasingly competitive global business environment, of the founders of RF Communications (now a division of Harris it is imperative for companies to take an entrepreneur- Corporation) and author of Startup: An Entrepreneur’s ial approach. One need look no further than the Guide to Launching and Managing a New Business. original 1929 Dow Jones Index of top compa- In the 1980s, Moore introduced a course for nies to understand the massive economic both engineering and business students in shift that has occurred. Of the original 30 Technical Entrepreneurship. The course companies on the list, only General Elec- went on hiatus until the late ’90s but is still tric remains. popular today. “As a result of global competitiveness During the ’80s and ’90s, Simon’s En- and rapid technological change, there is a trepreneurship concentration grew under constant need for reinvention, and that ap- the leadership of retired Simon professors plies to governments, firms, and individu- James N. Doyle and Peter L. Waasdorp ’62, als,” says Simon School dean Mark Zupan. ’69S (MBA). With support from the Zupan points to firms like Goodyear and IBM, Ewing Marion Kauffman Foundation, Simon both of which were on the brink of bankruptcy offered the Kauffman Internship program, but went through significant transformations and which matched local startups with Simon students experienced major comebacks. interested in entrepreneurial careers. In 2005, the The days of large corporations driving economic University was one of only eight schools selected to growth have slowly and steadily declined, transitioning split the total of $25 million in funding to weave entre- to a new economy fueled by entrepreneurial ventures— preneurship into the entire curriculum, and the ventures that start with an idea. University’s Center for Entrepreneurship was estab- Duncan T. Moore is the University of Rochester vice lished under Moore’s leadership. provost for entrepreneurship, Rudolf and Hilda King- Current Simon entrepreneurship faculty also in- slake Professor of Optical Engineering, professor of cludes Ron Goettler, associate professor of business biomedical engineering, professor of business admin- administration; Donald Golini and David Hessler, istration, and area coordinator of the Simon School’s lecturers in entrepreneurship; Dennis Kessler, Ed- Entrepreneurship concentration. He points to cities like ward J. and Agnes V. Ackley Clinical Professor of En- San Diego, CA, and Austin, TX, as good examples of re- trepreneurship; Boris Nikolov, assistant professor of silience. “Thirty years ago, San Diego was a Navy town, finance; David J. Oliveiri ’81S (EMBA), executive profes- and Austin was a cow town,” he says. “It took leadership, sor of business administration; and James S. Senall ’99S particularly at the universities in those cities, to transform (MBA), Bob Tobin, and Mark W. Wilson, lecturers in them. Universities play a key role in economic development, entrepreneurship. and this wasn’t really recognized until a decade ago.” Because of his interest in entrepreneurship, James N. Doyle Another case in point: Rochester, NY. Despite the decline in Jr. established an endowed professorship in Entrepreneurship in jobs of the “Big Three”—Kodak, Xerox, and Bausch + Lomb— his father’s name. Simon alumni entrepreneurs including Joseph Rochester continues to thrive economically. “Statistics for Roch- Abrams ’74S (MBA), Mark S. Ain ’67S (MBA), and Dan Lazarek ester’s top 10 employers 30 years ago versus today show that we ’91S (MBA) have also demonstrated considerable support of the had a net gain in that period of about 65,000 jobs.” says Moore. initiative. In fact, Rochester has been a leader in job growth in recent Nearly half of Simon graduates join or launch their own busi- years, mostly due to the rise of small- to mid-size businesses, and nesses 10 years after leaving the School. The following stories driven in large part by the University of Rochester, the state’s provide a glimpse into the process of an idea becoming the eco- seventh largest employer. nomic engine that is creating the economy of the 21st century.

Phil Bliss Simon Business ◾ Fall 2012 29 Many “millennials,” or those born exploring the do-it-yourself investor experience. He began to ex- Jonny Trade in the early 1980s, are starting their plore how an online subscription-based model like Netflix could own businesses. Some even become serial entrepreneurs, riding be applied to the world of finance and investing. the wave wherever their hard work and ingenuity takes them. “I could succeed—or fall flat on my face,” Markowicz says. These members of Generation Y are known for their ambition, “But there is a curiosity there that is drawing other people in, independence, and technological savvy. and that’s a good sign.” Jonathan Markowicz, Simon MBA candidate, Class of 2013, is a A member of Simon Entrepreneurs, Jonathan secured a spot prime example of one such budding entrepreneur. “I’m always in the startup incubator established by the University’s Center looking at innovative ideas,” he says. “I’m addicted to looking at for Entrepreneurship and the Simon School at High Tech Roch- things through the lens of potential and what they can become.” ester, where he spent the summer solidifying his market research Having earned a bachelor’s degree in philosophy and political for online trading and building his network of traders, investors, science at Fordham University, Markowicz knew that he needed a management team, and an online prototype. He is also actively to attain the “hard skills” in order to pursue his dream of starting involved in the Simon School Venture Capital Fund (see the his own business. He chose the Simon School and Rochester for accompanying sidebar). its commitment to entrepreneurship. Jonathan Markowicz (standing) “The Simon network is so sup- Markowicz has been able to work on creating a business looks on as Simon students try portive. Professor David model for Jonny Trade, his online trading/brokering startup, an his online stock market trading Hessler has agreed to be an idea that came to him while he was playing on E*TRADE and service, Jonny Trade. advisor on my startup, and he

( ) philanthropic support from Simon Simon School Venture Capital VC Fund alumni entrepreneurs, is being Student entrepreneurs and Capital Fund in a real-world set- Students involved in the fund overseen by a board of directors aspiring venture capitalists at the ting. At launch in May 2012, the will make early-stage venture led by chairman Christopher Simon School of Business now Fund had commitments exceeding capital investments with an Schiavo ’90S (MBA), CFO of have an innovative hands-on edu- $1 million and is expected to grow emphasis on providing support for Battery Ventures, a Boston- cational opportunity to manage a over time in step with the portfolio student-initiated startup ventures. based global venture capital firm. philanthropically funded Venture of investments. The fund, made possible by Joining him on the board is Mark

30 Fall 2012 ◾ Simon Business Adam Fenster suggested other faculty members who were willing to help and give input,” Markowicz says. “This fall, I will launch the idea and solicit feedback from alumni entrepreneurs and my fellow students. That kind of support is invaluable.”

Sandra Gault ’94S (EMBA) knew Shulogique when she was a student at Simon that she wanted to start her own business. A Kodak executive at the time, Gault experienced the entrepreneurial itch. After graduation, she worked for a startup in Raleigh, NC, and eventually became a senior manager at Allworks, a voice-over IP phone system that was later sold to PAETEC Holding Corp. The experience was rewarding and innovative, but Gault wanted to create her own startup with her signature on it and take her skill set as far as it could go. After researching many different concepts, believe in yourself, believe in your business, then take that belief Gault came up with an idea that blended her passion for fashion, and turn it into action, a project, and a plan.” business, and technology. Denila Philip built a complete business forecast model for “Women love high-heel shoes, but the industry lacks a high- the new company that provided detailed analysis of how many tech approach to business and design,” she explains. “Every shoes could be sold and how many customers could be cap- woman deserves to wear a beautiful pair of high-heel shoes tured to taxes and benefits for employees and the cost of space regardless of age, size, or shape.” Nearly two years ago, Gault for IT equipment. “We had all of the University resources at our found a digital imaging technology originally used in the medical disposal,” Gault says. “The research leveraged from the Simon industry for prosthetics. Now, she uses that same technology to Management Library with then-librarian Brenda Reeb opened scan woman’s feet and make high-heel shoes that fit, are com- up a host of information about the industry, and Simon professor fortable, and great looking. She named the business Shulogique Dennis Kessler gave us helpful advice and direction.” and made an appointment with Dean Mark Zupan to share her Knowing that she was on to something, Gault tested more ideas. than 700 women over the past two years, and developed a “Mark was very supportive and excited about the possibili- special fit and comfort algorithm that is patent pending. “Shu- ties,” Gault says. “Our first three scanning events were held at the logique is Valentino meets Apple,” Gault says. “It’s got the beau- Simon School, and it was an instant success.” The School offered tiful quality that you associate with Valentino and the high-tech student interns Natalia Carrasco Baron ’11S (MBA) and Denila capability that you expect from Apple.” After the scanning, a Philip ’12S (MBA) to help work on the back end of the business. digital image of each foot is sent to a high-end manufacturer in Baron, who is now a co-founder of the Manhattan-based Spain, where the shoes are created. The customer chooses a style Shulogique with Gault, created a sophisticated market model from 12 available options, the heel height (two- and four-inch that can target customers by ZIP Code as well as their buying heels), and selects from 120 leathers. “Flats, six-inch heels, boots, behavior and spending patterns on footwear. A Bolivia native, handbags, belts—the possibilities are endless!” Gault says. Baron was no stranger to entrepreneurship. She started her own Currently in the capital-raising phase, plans are under way to successful Internet-based outsourcing business when she was in launch the business this fall in New York City. college. “Entrepreneurship is about making things happen,” Baron says. “You have to be comfortable taking risks. I could’ve taken Sandra Gault (right) and Natalia a regular post-MBA job, but I have learned so much more than I Carrasco Baron show off the origi- could have in a traditional corporate environment. You have to nal Shulogique style.

S. Ain ’67S (MBA), founder and Agnes V. Ackley Clinical Professor in all aspects of venture capital Simon Entrepreneurs Association, chairman of Kronos Incorporated, of Entrepreneurship at Simon and and benefit from the experience and is the result of two years of the Chelmsford, Mass.-based co-owner of Kessler Restaurants and direction of the accom- work by Simon School faculty, market leader in the workforce LLC, a Rochester-based owner plished members on their board staff, students, and partners at management industry; Daniel G. and operator of 21 Burger King of directors. the University’s Office of Counsel Lazarek ’91S (MBA), CFO, COO, and 47 Friendly’s restaurants; The fund is being supported by and Office of Technology Transfer and co-owner, The Access Group; and Matthew Tipple ’12S (MBA). the University of Rochester Center and Commercialization. Dennis Kessler, Edward J. and Students will gain experience for Entrepreneurship and the

Ria Tafani Simon Business ◾ Fall 2012 31 (Left to right) Elizabeth Schirmer, Arunas Chesonis, Jonathan Sherwood, and Jack Baron display some of Sweetwater Energy’s new technology.

Arunas Chesonis students to help build a business plan around a solar energy Sweetwater Energy ’91S (MBA) has company, a plan that later became a finalist in the annual Mark always been intrigued by a smart business idea, but he wasn’t to- Ain Business Plan Competition. tally convinced on Sweetwater Energy until 2009, when the then After Sherwood graduated, Baron invited him to join fledgling alternative energy startup began the shift from ethanol Sweetwater as vice president of financial planning and analysis. to a wider array of products that could eventually replace petro- Sherwood is responsible for the economic and strategic analysis leum. Chesonis was one of Sweetwater’s first investors, having of Sweetwater’s business endeavors, but his role is flexible at the been a big proponent of sustainability and alternative sources company. “In a large company, a position can be more valued than of energy—a passion he developed while he was chairman and the person filling it,” Sherwood says. “When you’re in a startup, CEO of PAETEC Holding Corp. the position isn’t as important as the person. There are so many His deeper involvement with Sweetwater began after his roles to fill that everyone’s talents become invaluable in some way.” friend and colleague on the PAETEC senior management team, Fellow Simon graduate Elizabeth Schirmer ’11S (MBA) joined Jack Baron ’83, became CEO and chairman of Sweetwater. Sweetwater, having previously worked for Chesonis and Baron Baron asked Chesonis to chair the Sweetwater board, and after at PAETEC. As vice president of sales and customer advocacy, PAETEC was sold to Windstream in 2011, Chesonis was look- Schirmer leads Sweetwater’s national sales and services division. ing for a new opportunity. At the end of 2011, Chesonis joined “Simon prepared me for a career in an entrepreneurial environ- Sweetwater as CEO, retaining his board chairman role, with ment,” Schirmer says. “I continue to draw upon the Simon prin- Baron running the day-to-day operations as president and COO. ciples of business ethics and Chesonis says, “I firmly believe that entrepreneurship is the “In a large company, a position value creation in my job every most critical factor to ensure long-term sustainable growth for can be more valued than the single day.” the United States. How we encourage innovation through our person filling it. When you’re in a A demonstration-scale fa- university systems, large corporate initiatives, and governmen- startup, the position isn’t as im- cility is under construction, tal tax and regulatory policies will determine whether or not our portant as the person. There are which will allow final vetting country is a leader or a follower in the next century.” so many roles to fill that every- of the Sweetwater technol- Chesonis and Baron recruit bright and talented individuals one’s talents become invaluable in ogy at commercial scale. It is and often look to the Simon network for connections. In 2009, some way.” scheduled for completion later Jonathan Sherwood ’09S (EMBA) was taking Duncan Moore’s this year. Technical Entrepreneurship course for business and engineering students. Moore asked Baron to lead Sherwood’s team of

32 Fall 2012 ◾ Simon Business John Smillie 1980 2010

Eastman Kodak Company: 53,387 University of Rochester: 18,028

Xerox: 15,470 Wegmans Food Markets Inc.: 9,726

University of Rochester: 14,000 Xerox: 7,014

Delphi (General Motors): 8,951 Rochester General Health System: 6,072

= approximately 500 employees

Rochester General Hospital System: 5,100 Eastman Kodak Company: 5,909

Gleason Corporation: 4,928 Excellus BlueCross Blue Shield: 3,473

Rochester’s Top 12 Employers, Then and Now Bausch + Lomb Inc.: 4,800 Paychex Inc.: 3,386 D espite the decline in jobs for the “Big Three”—Kodak, Xerox, and Bausch + Lomb— Nalge Nune (Sybron): 4,643 Rochester Institute of Technology: 3,085 Rochester continues to thrive economically. In fact, Rochester’s net employment in 2010 was 21 percent higher than in 1980. Wegmans Food Markets Inc.: 4,490 Harris Corporation: 2,300 Analysts point to the rise of small- to mid- size businesses, startups that sprung from the corporate giants, as the source of much of that growth. The continued success of Rochester Gas and Electric: 2,701 Sutherland Group: 2,194 startup businesses remains critical; however, as Eastman Kodak continues to downsize and plans to layoff an additional 3,700 Pactiv: 2,700 JP Morgan Chase & Company: 1,550 workers by the end of 2012.

Frontier/Global Crossing: 2,254 Bausch + Lomb Inc.: 1,500

SOURCE: Center for Government Research, Rochester, NY

deals in the education industry with Cengage Learning (for- merly Thomson Reuters Learning). The partnership is based on Saad Alam ’08S (MBA) and Lee Jokl a premium version of Citelighter’s existing product, and allows ’08S (MBA) came up with the idea Citelighter paying users to access 160 million pieces of content, while giving for Citelighter while they were students at Simon. Citelighter access to over 3.5 million students. Launched in 2011, the academic research platform helps stu- Citelighter received two first-place awards at the third an- dents and researchers save, organize, and automatically cite con- nual University of Pennsylvania Graduate School of Education tent on- and off-line. (Penn GSE) and the Milken Family Foundation’s 2012 Milken The Manhattan-based technology company is already gar- Penn GSE Education Business Plan Competition. Ten finalists nering national recognition. After eight months of operation, were chosen from over 200 worldwide submissions. Finalists Citelighter has signed one of the largest content and distribution presented their business plans to a panel of industry experts,

Steve Boerner Simon Business ◾ Fall 2012 33 of the University Board of Trustees, led the initial investment in Citelighter. Roy Jones, clinical assistant professor of computers and information systems, also invested in the young startup. Both Jokl and Alam are excited about the possibilities that lie ahead for Citelighter. They can’t wait to see what happens next.

Information gathering was also the cata- Goalee lyst for the Meliora Network, an online alumni-networking platform that came to life via Dean Zupan’s Meliora course. James Brown ’11S (MBA) and Chris Sturgill ’11S (MBA) developed a business plan for their startup, Aught9, that would make updating the University’s alumni network easier and more efficient by gathering information from social media rather than traditional methods. Brown and Sturgill credit Dean Zupan for inspiring them to pursue the idea of creating the private social network for the Simon community and bringing it to fruition. Zupan became an advisor for the company, and Dan Lazarek ’91S (MBA) also joined as an early investor and board member. With nearly 3,000 registered users, the success of the Me- liora Network led Brown and Sturgill to take their concept to the next level. Aught9 ultimately morphed into a new business, Goalee, a networking website that helps users achieve their career goals by blending the benefits of an online networking site like LinkedIn with online matchmaking sites like eHarmony. Goalee searches Facebook and LinkedIn profiles to determine appropriate matches based on shared interests and professional history, providing a more effective way to expand one’s network and achieve who selected winners based on their plans’ viability, economic set goals. It then guides the outreach, providing a better idea of sustainability, target audience, and creativity. It was Citelighter’s what to say when contacting someone they don’t already know. first official entry in a formal business plan competition. Users can correspond within Goalee, or add other users to their “The skills I learned at Simon apply to my business today,” Facebook and LinkedIn networks, relying on the points of simi- Alam says. “Every class I took is the backbone of what I do every larity as a basis for better outreach and relationship building. single day.” Jokl and Alam manage nearly 90 interns across the “We believe the old adage ‘it’s who you know’ is as valid as country and six in-house employees using methods that they ever. Goalee provides a more effective way to discover and con- learned in Professor Gregory Dobson’s operations courses. nect with people you never knew you needed to know. Alam cited Dean Mark Zupan’s Meliora course on improving “A lot of us don’t know who to contact when networking, the Simon School for shaping the way he thinks and giving him or what to say when approaching someone for the first time. the courage to leave a corporate marketing job at Eli Lilly to pur- Goalee acts as a network coach. It suggests new connections sue this business idea. “I remembered all the different conversa- and helps you know what to say when you reach out to some- tions we had in the class and all the people the dean brought in one you haven’t connected with before,” Sturgill added. The site to help inspire us, and I realized I can actually find the courage I launched in July, and the Simon alumni community will soon be need to leave my job and go for this because of what I learned at receiving an invitation to join. Simon.” Saad Alam (top) and Lee Jokl The University of Roch- Simon teaches students to analyze and solve complex business are working to make Citelighter ester community has been problems. The 2008 recession created an economic sea change the new standard in academic paramount to their success, whose waves were felt around the world. The economy is recov- research. with Joe Abrams ’74S (MBA) ering, but the world is not the same and creative entrepreneurial and Matt Abrams advising the enterprises seem to be fueling the recovery engine. Tradition- nascent start-up through the ally strong career paths have shifted, giving way to new avenues Cengage partnership. Addi- to success. But are they really that new? In the end they all begin tionally, Ed Hajim, chairman with an idea. s

34 Fall 2012 ◾ Simon Business John Smillie SimonFire_8.25x10.75_Layout 1 6/11/12 3:27 PM Page 1

Education Is Not The Filling Of A Pail,But The Lighting Of A Fire. — William Butler Yeats

Fuel the flame of life-long learning by supporting the Simon School Annual Fund. Your support ensures that Simon students receive an education that lays the foundation to build the fire within. Visit www.rochester.edu/annualfunds/fire today to help illuminate Simon graduates’ futures.

Annual Giving Programs, University of Rochester 800.598.1330, [email protected]

All gifts count toward The Meliora Challenge, a University-wide fundraising Campaign that was launched in 2011 and runs through June 30, 2016. Your five-year pledge of $1,500 or more may qualify you for George Eastman Circle membership. To learn more about how you can make a lasting impact on Simon students, please contact Christian Gordon at 585.273.1756 or visit rochester.edu/giving/gec. Simon Marks Wallis 100th Birthday This November, the University of Rochester and the Simon institution. That was not characteristic of business schools at that School of Business will celebrate what would have been the time,” says Hansen. In that era, most business schools were fo- 100th birthday of former University of Rochester president and cused more on training than scholarship. “The fact that we have chancellor W. Allen Wallis. Considered by many to be the archi- three academic journals published in this business school is a tect of today’s University, Wallis combined his unique vision and standing testament to his focus.” extraordinary fundraising skills to expand the campus and create In 1976, Wallis wrote An Over-Governed Society, a collection of what became the Simon School. essays and speeches that reflected his long-held Libertarian be- “Allen did a lot for several departments in the University to liefs. Over the years, Wallis served the administrations of four US strengthen their academic reputation,” said Ronald W. Hansen, presidents: Dwight D. Eisenhower, Richard M. Nixon, Gerald R. senior associate dean for program development, William H. Ford, and Ronald W. Reagan. A renowned statistician and eco- Meckling Professor of Business Administration, and director of nomic advisor, Wallis retired from the University in 1982. He and the Bradley Policy Research Center. “The economics and politi- his wife, Anne, then moved to Washington, DC, where he served cal science departments flourished with him.” as undersecretary of state for economic affairs. According to Hansen, who over the years came to know Several events are being organized to commemorate the for- Wallis, the former president and chancellor’s attention to aca- mer president’s 100th birthday. “We’re planning a program for demics are what helped set the Simon School apart. Meliora Weekend,” says Hansen. “The Simon School should tip a “He started us on the path of being a strong academic hat to Allen Wallis.” s

Pictured here with the 34th President of the United States, Dwight D. Eisenhower, Allen Wallis served in the Administration of four US presidents. Under Ronald Reagan, Wallis served as Under Secretary of State for Economic Affairs.

Opposite page left: Allen Wallis tours the University of Rochester tunnels with William E. Simon. Opposite page right: Considered by many to be the architect of today’s University of Rochester, Wallis sits for a picture in the Eastman Quadrangle.

36 Fall 2012 ◾ Simon Business University LIbraries/Department of Rare books, special collections, and preservation Simon Business ◾ Fall 2012 37 Research Highlights

Timing, Timing, Timing

Scheduling product innovation is one of the toughest information players shared with each other in three tasks managers tackle. How long should a TV series areas: what they liked about the game’s current con- last, for example? How frequently should video game tent, their previous experiences playing the game, updates be released? and their expectations about future content and At its core, the answer lies in knowing why and enjoyment. how consumers are using the product. In a new The paper shows that roughly 30 percent were paper, “The Impact of Innovation on serious players who consume content quickly. The Product Usage: A Dynamic Model with rest were casual players, with each group valuing the This recent study Progression in Content Consumption,” game’s content differently. The serious players gob- Paulo Albuquerque, associate profes- bled up the game more quickly. When upgrades were finds delaying the sor of marketing, and doctoral candidate delayed, however, their participation fell faster than release of new Yulia Nevskaya built a model that both that of casual players. The casual players, although explains how consumers make decisions slower to make their way through the game, still electronic game about products that undergo regular up- reached the same level of experience with the prod- content boosts dates and provides insights on product uct as the serious players. innovation. To determine the ideal frequency for product consumer loyalty The entertainment industry is no- updates, the authors tested a scenario: What would and interest in the torious for frequent launches of prod- happen if the firm postponed the fourth product up- uct updates, with consumer interaction date by 56 days? They found that the delay, though long run. following a logically progressing “story initially appearing to decrease immediate partici- line” and well-timed content introduc- pation, actually boosted it by 4 percent over time. B y Sally Parker tions. Serial TV shows, such as 24 and Delaying the release of new content boosted partici- Heroes, are good examples; each episode pation across all consumer segments and allowed for adds to the understanding of the story line, feeding more loyalty and interest in the long run. consumer loyalty and interest. The paper warns of a likely decline in demand for Albuquerque and Nevskaya tracked the expe- the product if innovative content is not introduced riences of users of World of Warcraft, an online “due to satiation with old content and the emergence game involving a large community of players. This of substitute products. Consumer loyalty and interest idea came two years ago from a look for consumer depend on both the benefits of the current experi- feedback on the online forums, where players dis- ences and the availability of unexplored content that cuss everything from strategy to product launches. provides new experiences.” Albuquerque was especially Moreover, they write, “firms need to interested in speculations by provide a constant stream of new material, experienced players, who won- especially when revenues depend on the dered what upcoming updates continuity of content consumption.” would bring and how long Whether the product is an they would have to wait online, role-playing game or a to find out. These players favorite TV show with an on- have influence in the on- going story line, enjoyment is line user community and derived the same way, according The world of online affect participation. to the study autors. “A consumer’s gaming provides From websites that com- enjoyment has two parts—your a glimpse into the pile information on online experience today but also your business of prod- games, Albuquerque and expectations for the future,” they uct updates, con- Nevskaya collected a note. sumer loyalty, and sample of 350 players “A balance between the two continued buyer and tracked the progres- concepts is necessary to keep interest. Results sion of their use of the people involved with the prod- indicate conven- product over two years. uct. It’s about managing the excite- tional wisdom may The authors modeled game ment, the satiation, and the buzz not hold true. participation using the around all these concepts.” s

38 Fall 2012 ◾ Simon Business Blizzard Entertainment Research Highlights

The Word of Mouth Speaks

What is it about brands that drive word of mouth? Many studies have been done about word-of-mouth (WOM) marketing, and more still on brands. Though both are central concepts in marketing, surprisingly little research has focused on the role of brands A look at why in word of mouth. some brands enjoy Mitchell J. Lovett, assistant professor of marketing, is a successful word-of- co-author of a new study that mouth campaigns, is the first to explore the relationship between them. Lovett while others seem produced “On Brands and Word of Mouth” with Renana to barely get a The paper has implications for brand managers, Peres of Hebrew University of Jerusalem who can use the results to assess how much to invest whisper. and Ron Schachar of IDC Herzliya’s Ari- in word of mouth. For instance, the study’s model son School of Business. B y Sally Parker “can identify brands that, given their characteris- The team constructed a large data set tics, underperform in terms of word of mouth,” the of roughly 700 of the most talked-about authors write. “Such evidence might suggest that brands in the United States. To under- greater investment in WOM is needed.” stand the impact of brands on word The paper shows that the relationship between of mouth, they started with the basics—consum- brand and word of mouth is nuanced and intricate in ers and their motives and needs. These needs fall two key aspects: All three drivers—functional, social, into one of three types of drivers: functional, social, and emotional—play a role in the word-of-mouth dy- and emotional. namics. In other words, word of mouth is not an out- “Each of these drivers is composed of different come of only one characteristic (such as visibility), needs or motives that play a role in consumer de- motive (such as self-enhancement), or driver. All the cision making,” the authors write. “Each of these different facets of the brand are involved in generat- motives, in turn, suggests a set of brand character- ing word of mouth. istics that play a role in stimulating word of mouth.” In addition, the role of brand characteristics dif- Functional drivers relate to the need to obtain or fers across word-of-mouth channels. “For example,” convey information. Social drivers are about express- the authors write, “new and more complex brands ing uniqueness, self-enhancement, or a desire to are talked about more offline, but we find no support belong. Emotional drivers express a need for sharing for these relationships online.” emotion. Older or simple brands that perform well but For example, the underlying need to ex- receive little offline word of mouth might receive press uniqueness, a social driver, is most eas- more word of mouth if more flexible characteristics ily met through word of mouth about a highly of the brand, such as visibility, are tweaked. A good differentiated brand. example is Intel Inside, a marketing campaign that The authors also distinguished between the driv- created word of mouth for a largely unseen product, ers behind online and offline word of mouth. Social computer microprocessors, Lovett says. and functional drivers are most important online, The study’s results are important for marketing which typically involves communicating to many executives and brand managers, who are looking to people at once—on Facebook and Twitter, for strengthen links between investments in brands and example—and is more useful for self-expression. their market outcomes. Emotional drivers are most often seen offline. These “How much word of mouth should be in the mix conversations usually happen one on one and are of your advertising strategies?” Lovett asks. “The more personal and ideal for sharing excitement, sat- model can shed light on all of these things.” s isfaction, and other emotions. iStockphoto Simon Business ◾ Fall 2012 39 Research Highlights

Patients Prefer Same Gender

Competition for patients among urology physician urologist requires a population nearly 3.5 times groups has a direct effect on women’s health, a new larger than the first, suggesting market structure in- study has found. fluences gender disparity. Indeed, when a group ex- Ryan McDevitt, assistant professor of economics pects to be the only one to employ a female urologist and management, and James Roberts of Duke Uni- in its market, it is about 48 percent more likely to do versity, co-authored “Market Structure and Gender so than when it expects a competitor to employ one. Disparity in Health Care: Preferences, The authors collected US data on physicians, Competition, and Quality of Care.” patients, cancer deaths, and a wide range of demo- Female patients Their study shows urology patients graphics. Their paper contributes to studies in indus- prefer a physician of the same gender. trial organization, health care, and the economics of overwhelmingly While this is true in most medical spe- discrimination. prefer female cialties, urology is unique in that women The study finds that the structure of US urology make up approximately 30 percent of pa- markets has important consequences for women’s urologists, tients but only 6 percent of doctors. As a health. resulting in market result, female urologists treat more than “Women fare worse in a market where there are twice as many female patients as would fewer or no women urologists,” McDevitt says. and employment be expected, and on average, those pa- Counties without a practicing female urologist demands for tients travel more than twice as far. have a 4.1 percent higher death rate from female uro- Some patients prefer a doctor of the logical cancers, everything else being equal. When providers. same gender so much that they will con- only male doctors are available, women may be sult with one outside the field for certain foregoing consultations with urologists, potentially B y Sally Parker conditions, such as a gynecologist, even allowing the disease to advance and become more if it means receiving inferior care. difficult to treat successfully. Most doctors are surprised at the degree of this McDevitt and Roberts estimated the costs of im- preference, McDevitt says, but doctors’ groups are proving outcomes through a model in which groups responding. “Groups are actually choosing doctors receive subsidies to employ female urologists. in a way that corresponds to gender,” McDevitt says. “Subsidizing the most cost-efficient group to em- “These groups are choosing female physicians for ploy a female urologist in the 112 markets that cur- strategically competitive reasons.” rently lack one . . . would cost $20.5 million annually McDevitt and Roberts estimate the market size re- and result in approximately 300 fewer urological quired to support male and female urologists, given cancer deaths among women each year,” they write. patients’ gender preferences. A urology group be- “This amounts to an estimated cost of $68,360 for comes more likely to employ a female doctor as com- each year of a woman’s life saved, which falls within petition for female patients intensifies. The authors conventional benchmarks for the statistical value of “Counties without a practicing female urologist have a 4.1 percent higher death rate from female urological cancers . . . When only male doctors are available, women are delaying or foregoing consultations with urologists, allowing the disease to advance and become more difficult to treat successfully.”

find that a market large enough to support 16 male an additional year of life.” urologists will only support, on average, one female Applying his expertise in industrial organizations urologist, a puzzle given that female patients consti- to the medical field was gratifying, says McDevitt, tute 30 percent of patients in these markets and tend whose father is a urologist. “We care a lot about these to prefer female urologists. outcomes because there are lives at stake,” he says. s Their study also finds adding a second female

40 Fall 2012 ◾ Simon Business Research Highlights

Understanding Incentive

Jeanine Miklós-Thal and co-author Hannes Ullrich were looking for a way to test whether future career prospects affect current effort incentives when they hit upon the perfect testing ground: European soccer. “Soccer is a nice way to test these incentives,” says Miklós- The relationship Thal, assistant professor of economics and marketing at between future the Simon School. “You need career prospects an environment where some people have a chance to be and current effort promoted and others do not. in the office is You can’t test the same thing in a business environment.” explored through The “promotion” in this the lens of world case was an opportunity to play in the Euro Cup. The au- soccer players. thors wanted to know whether the prospect of being selected B y Sally Parker to a Euro Cup national team affected players’ pre-cup performances on their club teams. They tracked the performance of roughly 250 players on have a high chance of placement on their national all the club teams in the premiere league of Germany teams performed worse in club matches. between the end of the World Cup in July 2006 and “An upcoming cup is to the detriment of clubs that the end of the 2007–08 soccer season in May 2008. employ regular players of qualified national teams,” The Euro Cup began a few weeks later. they write. “Players who are already quite certain of Like soccer clubs across Europe, German teams being selected reduce their effort prior to the cup to comprise players from many countries. Some of the avoid fatigue and injuries.” players are nationals of countries that field a team for The paper, “Career Prospects and Effort Incen- the Euro Cup. Other players on those same teams tives: Evidence from Professional Soccer,” is the first come from countries that don’t field a Euro Cup team; to show direct evidence that the prospect of future those players, ineligible to play in the cup, served as promotion can affect current actions. It’s also the the control group for empirical and statistical analysis. first to find that those whose promotion is close to International soccer cups are a really big deal in certain may perform worse than under regular cir- most countries of the world. It is an honor for any cumstances, Miklós-Thal says. Spain’s Fernando player chosen to represent his country, but it’s also The study has direct implications for business. Torres, back to an important job forum for the players, who receive Employees hoping for a promotion have incentives camera at left, lucrative job offers and advertising contracts, Miklós- to increase or reduce efforts for similar reasons as celebrates with Thal says. the soccer players. Job efforts will be stronger from teammates after The authors found that players with average employees who think they have a fair chance of scoring the open- chances of being nominated to their national teams, getting promoted. ing goal during many of them younger players still proving them- “And staffers who have very good chances of pro- the Euro 2008 selves, performed better in pre-cup club matches motion in the near future may actually reduce their final between Ger- than teammates of other nationalities who had simi- effort in areas unrelated to the promotion,” Miklós- many and Spain lar experience. Their performance was ramped up be- Thal says. in the Ernst-Hap- cause they were competing with other players from The study garnered wide attention in the German pel stadium in their home country for a spot on the national team. business press when a first version came out just be- Vienna, Austria. The authors, however, also found that players who fore the World Cup in 2010. s

AP Photo/Martin Meissner Simon Business ◾ Fall 2012 41 Alumni Leaders

Jennifer Singleton ’90S (MBA) President, Jennifer Temps Inc.

By Joy Underhill Don’t spend everything you make. Save for a rainy as one of her early and long-term clients. That rela- day. Develop more than one source of income. These tionship led to others, and she was able to position may sound like wise words from a grandmother, but the company with greater credibility. It all began at in reality, it’s advice from Jennifer Singleton, presi- an annual business expo she attended that sought to dent of Jennifer Temps in New York City. match minority business enterprises with corporate A conservative approach to financial management clients. Jennifer Temps has grown consistently, and and entrepreneurship has served Jennifer well. Two in 2001, opened a second office in Charlotte, NC. years after earning her Simon MBA, she started her “The days of a 30-year career with one company temporary staffing business with a modest invest- are long gone,” she says. “I believe that the best ment from an old boss, opening shop in a low-rent hedge against uncertainty is to develop multiple office near Wall Street. Jennifer had temped dur- income streams.” Indeed, when Jennifer is not run- ing school and on breaks, and she felt the industry ning her business, she restores old houses and typi- showed promise. But even with that promise, success cally sells them in less than a week after competitive meant sacrifice. bidding. “My employees used to kid me about wearing the Moving straight from her MBA education into en- same black shoes to work every day,” she says, “and trepreneurship is not a typical career path, but Jen- “The days of a in the early years, we bought used furniture. I in- nifer feels that opportunities are everywhere if you 30-year career vested all of our profits right back into the business, keep your eyes open and take time to research vari- with one com- resulting in year-over-year growth.” In 20 years of ous industries. pany are gone. I business, Jennifer is proud to say that her employees “There’s a lot more out there than just conven- believe that the have always been paid on time—a formidable accom- tional jobs,” she says, “and you can start a business best hedge against plishment in a cash-hungry industry such as temp without getting decades of experience. It takes hard uncertainty is do employment. work and the ability to find a niche market, but develop multiple Jennifer was fortunate to have TIAA-CREF, a even in a competitive environment like NYC, it can income streams.” Fortune 100 giant in the teacher retirement industry, be done.” s

42 Fall 2012 ◾ Simon Business shannon Taggart Bob Lerner ’78S (MBA) Consultant, President, and CEO Emeritus, QualxServ (now WorldWide TechServices)

By Joy Underhill After serving more than 30 years as a high-tech ex- “I’ve long been fascinated with the business wis- ecutive, Bob Lerner has seen more than his share of dom of the ancient Romans,” he says. Entrepreneur- change in the business climate. Beginning at Xerox ship and Ethics in Ancient Rome: The Management and moving on to spend 30-plus years with Wang Lessons of Pliny the Younger explores how collapsing and its successor companies, Bob has had plenty of Tuscan grape prices were dealth with by an ancient opportunity to put his Simon MBA to good use. Roman senator. Drawn largely from Pliny the Young- Bob moved up through the ranks of Wang Labo- er’s letters, the book provides critical guidance for ratories, a dominant player in the early days of mini- today’s entrepreneurs and business students through computers. Wang faced the familiar challenge of a framework of 20 lessons. emerging technologies—and, like many companies Bob credits two characteristics to success in busi- before and since, it didn’t respond well to a fast- ness: the ability to look for opportunities where changing marketplace. others don’t see them, and the conviction to pursue “We needed to focus on our core competencies,” those opportunities. “One of the reasons I was drawn says Bob, “and eventually, we found our way back to to the business practices of the ancients was that they our niche in customer service and maintenance after demonstrated both incredible acumen and, in Pliny’s the company emerged out of bankruptcy in 1993.” case, a strong commitment to business ethics,” he In time, Bob served as president of North American notes. “I encourage all students of business to look Services, with responsibility for more than 4,000 back as well as forward and commit themselves to the employees, and in 2000, he led a management buy- ethical practices that reliably build trust over time.” out of a portion of the company, which was renamed Simon, Bob says, gave him the analytical skills he QualxServ. needed to quickly evaluate complex transactions and His 2010 retirement has barely put a dent in Bob’s acquisitions. “I was fortunate to have several influen- business activities. In addition to serving as a consul- tial mentors after I finished my MBA,” he notes. His tant to WorldWide TechServices, an advisor to Work best advice? “Have and maintain a passion for what Market, and a member of Simon’s Executive Advi- you’re doing!” s sory Committee, Bob is putting the finishing touches on his first book.

“We needed to focus on our core competencies, and eventually, we found our way back to our niche in customer service and maintenance after the company emerged out of bankruptcy.”

Ma tt McKee Simon Business ◾ Fall 2012 43 Alumni Leaders

Dilip Sundaram ’88S (MBA) CFO and Senior Vice President, Ssangyong Motors

By Joy Underhill As an international executive, Dilip Sundaram knows studies in Calcutta, he qualified as a chartered ac- learning a foreign language and living abroad is only countant and pursued his MBA from Simon. He also the tip of the iceberg when it comes to embracing the spent time with Price Waterhouse as a management global business climate. “It’s vital to understand the consultant in offices in India and New York, and cultural and economic drivers of all major regions— served ten years with United Technologies Corpo- and to remember that what happens on the other ration in senior finance, strategy, and international side of the world will affect you,” he says. business development. All told, he has worked all Dilip was fortunate to have mentors who urged over the world: the United States, Australia, Spain, him toward international business, although he Russia, France, India, the UK, and currently South sometimes wishes he had the foresight to jump into Korea. such high-growth firms such as Apple or Google. He So why did he choose Simon? “Simply put, it was currently works in Seoul, South Korea, at Ssangyong one of the foremost schools in the world for finance Motors, the third largest Korean car manufacturer, and economics,” says Dilip. “The small class size pro- with annual sales of $3 billion. Ssangyong specializes vided me with a lot of individual attention and men- in performance SUVs and luxury sedans sold in Ko- toring. I only wish I knew beforehand how much it rea and 100 countries worldwide. snowed in Rochester!” As CFO, Dilip is responsible for critical finan- Dilip uses the skills he perfected at Simon every cial functions, not the least of which is executing a day. “I gained great intellectual curiosity about get- three-year plan for corporate transformation. “Our ting to the root causes of problems, seeking innova- company has just emerged from bankruptcy, and I tive solutions, and being a change leader. Professors can honestly claim that this is the most exciting job Ron Yeaple and Dan Horsky had a huge impact in “I can honestly I’ve ever had,” he says. “We’re revamping the com- igniting my interests in strategy and business devel- claim that this is pany culturally, organizationally, and operationally. I opment—interests that have shaped my multidimen- this is the most ex- repeatedly ask myself: How do I motivate our work- sional career.” citing job I’ve ever force during these challenging times? How do we In his free time, Dilip insists on keeping business had. We’re revamp- establish accountability across functions and become and pleasure separate. As a rule, he bans meetings, ing the company more performance oriented? And how do we estab- conference calls, and business prep during his time culturally, orga- lish a toehold in emerging global markets?” off. “I enjoy golf immensely, but sailing is my pas- nizationally, and Dilip’s educational and professional résumé reads sion,” he says. “In a different life, I would choose sail- operationally.” like a travel guide. After completing undergraduate ing as my profession and finance as my hobby!” s

44 Fall 2012 ◾ Simon Business L EE Jong-dae R andy Weaver ’03S (MBA) COO, Rochester-Genesee Regional Transportation Authority

By Joy Underhill In 1998, Randy Weaver found himself at a crossroads. we’ve realized seven straight years of net positive His degree in electrical engineering and work as a income,” says Randy. “We’re very proud of that project manager at a Silicon Valley startup was giving accomplishment.” him the choice of a technical or management career As an executive, Randy is convinced that pro- path. After careful thought, Randy realized his heart fessional patience and teamwork are paramount was with people and being involved in meaningful to success. “I’ve found that asking questions gives management decisions. me more answers than declaring things,” he notes. Randy enrolled in the Simon MBA program and “That doesn’t mean you don’t make tough decisions hasn’t looked back. “My MBA helped me become or shake things up. It just means you think before ‘bilingual’ in the business world—able to solve tech- you do.” nical problems and apply sound business principles,” Randy fondly recalls Ron Schmidt as one of his he notes. Such skills have assisted him in tasks as di- favorite Simon professors, both in and out of the verse as capital planning, service delivery, and devel- classroom. “Ron was like a drill sergeant for MBA oping a technical roadmap in his current position as students, especially when it came to defending our COO of the Rochester-Genesee Regional Transpor- positions,” he says. A few years ago, Randy invited tation Authority (RGRTA) in Rochester, NY. Ron to speak at a meeting of executives at RGRTA. Randy is charged with executing the RGRTA vi- “When we explained that we all got along well, Ron

“Working in the public sector is sion: to be the preferred transportation choice in a challenged us to examine if absence of conflict was challenging. More seven-county region, a service that provides more more beneficial than healthy conflict. It was a stimu- and more we must than 18 million rides per year. “Working in the public lating discussion that we still talk about today.” apply entrepre- sector is challenging,” he says, “and more and more, To further his professional growth, Randy regu- neurial thought, we must apply entrepreneurial thought, develop larly attends Verne Harnish’s Fortune Growth Sum- develop meaning- meaningful metrics, and understand how decisions mit. “We’ve implemented Vern’s Rockefeller Habits ful metrics, and translate directly into dollars.” at RGRTA and the results have been fantastic,” he understand how RGRTA faces the same spiraling fuel costs as says. Randy has also committed himself to reading 12 decisions trans- the rest of the country, but innovative thinking has books a year, half for pleasure and half for business. late directly into led to a sophisticated fuel swap as a hedge against He highly recommends Great by Choice by Jim Col- dollars.” increasing costs. “Unlike many public companies, lins and Drive by Daniel Pink. s

Simon Business ◾ Fall 2012 45 New Faculty

Simon Welcomes Noted Professors

The Simon School welcomed the following new fac- Ron Goettler ulty members for the 2012–2013 academic year: Associate Professor of Business Administration Professor Goettler’s research Guy Arie spans quantitative marketing, in- Assistant Professor of Economics dustrial organization, and finance, Professor Arie’s research inter- with an emphasis on structural ests include the study of employee econometric methods to under- incentives, strategic competition stand consumer and firm behav- between firms, and the design of ior. He is particularly interested in employee roles in firms. high-tech industries, focusing on His current research focuses on the relationship between competition and innova- the internal design of firms and tion and on the marketing of new products. employee incentives when the Goettler’s research has been published in various employee’s task becomes harder with effort. He is academic journals, including the Journal of Political investigating how these ideas can help software pro- Economy, the RAND Journal of Economics, and the ducers improve the productivity and profitability of Journal of Marketing Research. software testing. Another application of this research His paper, “Equilibrium in a Dynamic Limit Order is the design and compensation of sales forces. Market,” which appeared in the Journal of Finance, Arie’s research on strategic competition between was nominated for the journal’s Smith-Breeden firms focuses on those that operate in many mar- Prize and won the NYSE award for the best pa- kets. His research explains how larger firms’ airlines per on equity trading at the 2004 Western Finance can appear to be colluding while actually compet- Association Meeting. ing. The research also shows why international firms Before joining the Simon School, Goettler was may seem more productive than local firms, while an assistant professor of marketing at the Univer- the converse may actually be true. Other research by sity of Chicago. He holds a BA degree in economics Arie studies the effect of switching costs on markets from Miami University and a PhD in economics from and shows that, contrary to the accepted wisdom, Yale University. markets in which consumers suffer a small cost when switching between brands may be less profitable to Huaxia Rui firms than markets without such costs. Assistant Professor of Computers Prior to pursuing his PhD, Arie worked as an R&D and Information Systems engineer and manager in large defense and commu- Professor Rui’s research inter- nication firms. He holds a bachelor of science degree ests include the study of social in computer science and philosophy and a master of media, online advertising, and science degree in management science from Tel Aviv securitization. University and a PhD in managerial economics and His current research focuses strategy from the Kellogg School of Management, on the patterns of content dis- Northwestern University. semination on social broadcasting networks (SBN) such as Twitter, and how activities on SBNs might affect firm product sales. He is also investigating how to efficiently allo- cate heterogeneous and uncertain display advertising opportunities among multiple advertisers. He holds BE and ME degrees in control science and engineering from Tsinghua University and a PhD in information management from the McCombs School of Business, University of Texas at Austin. s

46 Fall 2012 ◾ Simon Business Class Notes

1988 for Global Dealings ■■Snorri T. Snorrason has Group in Bethesda, MD. released a new book, Asymmetric Economic 1998 Integration, which in- ■■Bogdan C. Lazaroae vestigates whether the was appointed to be effects of economic inte- transition manager for gration differ according NATO HQ in Brussels, to the size of countries. Belgium. He is responsible for NATO’s head- 1991 quarters transition from ■■Judith Ricker was its present location to awarded the 2012 Great a new, 21st-century Minds Silver Inno- campus. vation Award by the ROCHESTER The 33rd Annual Economic Seminar with Charles Plosser, president and CEO Advertising Research of the Federal Reserve Bank of Philadelphia, and James Glassman, Managing Director of 2000 Foundation (ARF). The JPMorgan Chase & Co. and head economist/commercial bank, was held on January 11, ■■James B. Cornehlsen award, presented at 2012, at the Hyatt Regency. released a book en- ARF’s “Re:think 2012” titled Conquering the BUFFALO Buffalo-area conference in New York Divide: How to Use Simonites feted the launch City, recognized her Economic Indicators of the Simon School Alumni pivotal-brand passion to Catch Stock Market Network of Buffalo on March research. In connection Trends. In March 2012, 27, 2012, with a Simon Night with her award win, he was joined by fellow Out. (Pictured): Network she recently delivered Class of 2000 alumni leader Sarah Heximer ’05, highlights from the for a Simon gather- ’06S (MBA), and Bob Hartz celebrated study in the ing in the Philippines ’90, ’98S (MBA). leading market research (Pictured, from left): industry publication, Nathali Castejon, in- Survey Magazine. Ju- ROCHESTER The Center for frastructure project dith is executive vice Entrepreneurship Lecture manager with Westpac; president of brand re- Series brought Nick Lantuh Milla Bouklieva; James search at Market Probe ’90S (MBA) to campus to Cornehelsen, portfolio in Fairport, NY. speak to students and local manager at Dunn War- alumni on April 18, 2012. ren Investment Advi- 1995 His talk, which was entitled sors LLC; and Jong ■■Hakan Akbas recently “Entrepreneurship in Dis- Romero, head of corpo- accepted the position ruptive Technologies: Find- rate planning for Stores of senior director with ing the Winning Formula,” Specialists Inc. (SSI). Albright Stonebridge focused on his role as the ■■Deniz Tunca was thrilled Group in Washington, founder and president of to realize his dream DC, in addition to serv- NetWitness Corporation. when he opened his own ing as managing partner restaurant, Westside ATLANTA Network leaders Katy Purwin ’06S (MBA) and Lisa Banerjee ’10S (MBA) hosted a happy hour for young alumni on June 13, 2012. (Pictured, from left): Martin Wodi ’06S (MBA), Purwin, David Pressman ’07, Banerjee, Ray Maung ’04, ’06S (MBA), and Kevin Okoeguale ’05S (MS). Cornehlsen (2000)

Simon Business ◾ Fall 2012 47 Cloud (2004) Cafe + Bistro, in Istan- Power Ventures in Sil- bul, Turkey. Visit www. ver Spring, MD. WASHINGTON, DC University of Rochester alumni and parents gathered at the Renais- westsidecafebistro.com sance Mayflower Hotel on March 1, 2012, for “After the Crash: Thoughts on the Financial for more information. 2006 Crisis, the New Regulatory Regime, and Implications for Future Generations,” a discus- ■■Daryl C. DuLong re- sion with President Seligman and Robert S. Khuzami ’79, director of enforcement, U.S. 2004 cently relocated to take Securities and Exchange Commission. The event, which included special introductory ■■Noah Cloud was pro- a position as director of remarks by Dick Thornburgh, was sponsored by Washington, DC, regional cabinet mem- moted to lieutenant marketing at Bausch + bers Diane Ambler ’71 and Marty Stern ’79, ’80S (MBA), partners, K&L Gates; and Rise colonel in the US Army Lomb Japan in Tokyo, Birnbaum ’74, founder and CEO, zcomm. and selected to com- Japan. mand the 7th Special ■■Christopher Johnston Troops Battalion at Fort is now marketing and Eustis, VA, beginning communications direc- December 2, 2012. tor for Mill River Win- ■■Sharon Markowitz was ery in Rowley, MA. awarded the Lloyd R. ■■Bhagat S. Sabharwal is Sankovich Leadership now senior vice presi- Award at the annual dent of risk planning meeting of the Ameri- and analysis and global can Jewish Committee consumer banking at (AJC) in June of 2012. Citigroup. Sharon is a board mem- ■■Justin A. Sansone ber of the AJC and a recently joined senior brand manager Robert Half Manage- MUMBAI, INDIA Simon alumni and prospective students attended a Simon School at Safeway in San Fran- ment Resources in alumni panel and reception on March 3, 2012, at the Taj Mahal Palace. The distinguished cisco, CA. Rochester, NY, as an panel featured Mukul S. Kasliwal ’88S (MBA), chairman of MW Corp.; Ashish Malik ■■Roberto Vazquez was account executive. ’94S (MBA), senior general manager, marketing, Mahindra & Mahindra; and Sameer K. promoted to procure- Shah ’82S (MBA), managing director, head-corporate banking coverage, Mumbai Global ment manager for 2008 Banking, Deutsche Bank AG. Special introductory remarks were given by Rohtash Mal, OCA–Itau Unibanco ■■Hong-Ki Sam Ko, MD, executive director and CEO of Escorts Ltd., Agri Machinery. Holding Corporation in completed his emer- Montevideo, Uruguay. gency medicine resi- ROCHESTER Simon alumni dency at Loma Linda and students participated 2005 University last year. in the 24th annual Simon ■■Mercedes Falcon has He now works in the School Golf Classic on May joined Pricewater- emergency department 18, 2012, at Ravenwood Golf houseCoopers as a at Eisenhower Medi- Club in Victor, NY. (Pictured, valuation manager. cal Center near Palm from left): Varun Shah ■■Nathan M. Ringelstetter Springs, CA. ’12S (MBA), Peter Hebert recently accepted a new ■■Terrence W. Liverpool ’12S (MBA), Professor position as manager of completed the Brook- Ron Schmidt, and Marais finance at Competitive lyn Half Marathon in Lombard ’12S (MBA).

48 Fall 2012 ◾ Simon Business Share May and is training for the New York City Your News Marathon in November. To submit a class note, e-mail Terrence is manager Kelly Rains in the Simon of online marketing Advancement Office at kelly. and website develop- [email protected], or to your Class Correspondent below. ment at Publishers

CLASS OF 1981 Clearing House. David Meister ■■David E. Ouriel ac- [email protected] cepted a new position CLASS OF 1982 as vice president of op- Sameer Shah [email protected] erations with Syntactx in New York, NY. CLASS OF 1983 BOSTON Alumni met Bob Park, the Simon School’s executive director of corporate re- Ellen Stevens ■■Timothy F. Shanley was lations and career management, in Boston, MA, on May 22, 2012, and Santa Clara, CA, [email protected] chosen as the 2012 re- on May 24, 2012, to hear his talk, “Creating Dramatic Change in the Career Manage- CLASS OF 1988 cipient of the US Navy Jeff Durbin ment Center.” (Pictured, from left): Brennan Mulcahey ’10, ’11S (MBA); Seth Hauben League’s Stephen Deca- [email protected] ’05, ’11S (MBA); Chris Johnston ’04, ’06S (MBA); and Will Mitchell ’11S (MBA). CLASS OF 1992 tur Award for Opera- Eric Suitos tional Competence. He [email protected] says his Simon educa- CLASS OF 1994 tion played a signifi- Rosanne Tierney Schwartz [email protected] cant role in his ability

CLASS OF 1995 to execute successfully Hakan Akbas as an operations officer. [email protected] Timothy is a lieutenant Philipos Minaidis [email protected] in the US Navy. Nikolaos Veraros ■■Christine J. Stoelting is [email protected] now an associate mar- CLASS OF 1996 keting manager for Rich Aditya Kapoor [email protected] Products Corporation in Buffalo, NY. CLASS OF 1998 ROCHESTER The Simon Advancement office welcomed the Class of 2012 to the Geoff Laughlin ■■Yvonne Yi Fang Tsan was alumni community on June 5, 2012, at the Toast to Our Grads Celebration. A toast [email protected] promoted to chief prod- was given by Alumni Council co-chair Kate Washington ’04S (EMBA) and Dean’s CLASS OF 2000 uct manager in the light- Jennifer Henion Leadership Awards were presented to (pictured with Dean Zupan from left): Bran- ing products business [email protected] don Sloane, Matt Tipple, Marais Lombard, Erica Messina, Brennan Day, Mason unit at BenQ Corpora- CLASS OF 2001 Bartleson, Bill Fiorica (EMBA), Lingling Chen, and Carolyn Romney. Not pictured: Bob Tracy tion in Taipei, Taiwan. Class of 2012 graduates Javaree Walker, Daniel Yuabov, and Rupali Monga. [email protected] ■■Mark D. Wagner was CLASS OF 2004 promoted to manager Karen Sweet [email protected] of sales operations at

CLASS OF 2005 Excellus Blue Cross Rameet Kohli Blue Shield in Roches- [email protected] ter, NY. Seiichiro Takahashi [email protected] ■■Savas Yanik was re-

CLASS OF 2006 cently promoted from Chris Johnston head of engineering and [email protected] contracting to deputy CLASS OF 2008 general manager, re- Chris Adams [email protected] sponsible for strategy Christine Stoelting and international proj- [email protected] SEOUL, SOUTH KOREA Area Simonites joined Ronald W. Hansen, senior associate ects at BOTAS in An- Don’t see your class represented dean for program development, William H. Meckling Professor of Business Adminis- kara, Turkey. here? Interested in becoming a Class Correspondent? Contact tration, and director of the Bradley Policy Research Center, for a networking reception Kelly Rains to learn more. on April 13, 2012.

Simon Business ◾ Fall 2012 49 Mergers & Acquisitions

1995 ❶❶ Nikolaos Veraros and ❶ ❸ ❹ his wife, Dr. Evangelia Kasimati, welcomed the arrival of their daughter on April 27, 2012. She joins two older sisters, Fotini and Lorietta. Nikolaos is a partner at Investments & Finance Ltd. He and his family live in Ath- ❷ ens, Greece. ❺ 2000 ■■Nathali Castejon married Leonardo Gomez on May 2, 2009, in Syd- ney, Australia. Nathali is an infrastructure project manager at Westpac in Sydney, Australia. ■■Robert S. Genter and his wife, Christine, welcomed the arrival of their daughter, Sofia Marie Genter, born on February 24, 2012. Bob, vice president at CGI, is now in a new role arrival of their daughter, ❹❹ Jaspreet S. Mann Ingram joins older management at Oxford managing a portfolio Chrysana, born Decem- married Diana Hiciu on sisters Maddilyn (12), Properties. She and her of business sectors in ber 17, 2011. Chrysana January 2, 2012, in Lud- Chloe (7), and Lily (4). family live in Missis- the United States. He joins older sisters Jas- hiana, India. Jaspreet is Brooks is chief finan- sauga, ON. and his family live in Vi- mine, Lilly, and Lani. a consulting manager at cial officer at Innisfree ❼❼ Pamela E. Wilson wel- enna, VA. Peter is enterprise Cognizant Technology Hotels. comed the arrival of FP&A finance manager Solutions USA. Diana ❺❺ Mark B. Ratchford Reagan Elleave Wilson, 2001 at Cardinal Health and is an assistant profes- married Elisa Gitan on born November 30, ➋➋ Manoel H. Amorim Grace is a partner and sor at the University February 18, 2012, at 2011. Pamela is director married Sandely treasurer at MRC Hold- of Southern Califor- the Hermitage Hotel in of NARs major account Amorim on April 30, ings LLC. They live in nia–Los Angeles. They Nashville, TN. Mark is business development 2011, at the Basilica of Dublin, OH. live in Torrance, CA. assistant professor of and service at Xerox. Immaculate Concep- (Pictured clockwise marketing at Vanderbilt She and her family live tion in Rio de Janeiro, 2004 from lower left):An- University in Nashville, in Portland, OR. Brazil. Manoel is a risk ❸❸ Gregory J. Butera and jan Rao ’04S (MBA), TN. Elisa is a licensed manager at BNDES. his wife, Valerie, wel- Jasdeep Mann, Ashwini clinical social worker. 2005 Sandely is a project comed the arrival of Rao, Wei-Hsun Ashley ❻❻ Karen Sweet and her ❽❽ Esteban Davalos management analyst at their daughter, Helena Yen ’04S (MBA), Di- husband, Matthias, and his wife, Soledad Petrobras. They live in Collette Butera, born ana Hiciu, and Jaspreet welcomed the arrival Cortez, welcomed the Rio de Janeiro, Brazil. May 23, 2012. Gregory Mann). of their daughter, Elea- arrival of their son, Lu- is senior marketing ■■S. Brooks Moore and his nor Rose Sweet, born cas Davalos, born on 2003 manager at The Lewin wife, Jessica, welcomed February 7, 2012. Elea- March 27, 2012. Lucas ■■Peter Nguyen and his Group, a health care the arrival of their son, nor joins older brother joins older brother, wife, Grace Nguyen ’03S consulting firm based in Ingram Brooks Moore, Lucas (2½). Karen is Martin (3). Esteban is (MBA), welcomed the Falls Church, VA. born March 12, 2010. director of real estate global brand marketing

50 Fall 2012 ◾ Simon Business Ruth Breslawski, born ❻ ❼ ❽ June 19, 2011. Ann is lead analyst in the financial risk division at Iberdrola USA. She and her family live in Hamlin, NY. ⓫⓫ Jason R. Hall and his wife, Lisa, welcomed the arrival of their ❾ ⓫ daughter, Adalyn Marie Hall, born February 8, 2012. Jason is vice president at DeltaPoint Capital Management. ❿ He and his family live in Rochester, NY. ■■Timothy F. Shanley and his wife, Emily, ⓬ welcomed the arrival of their fourth child, Joseph Pfeifer Shan- ley, born November 23, 2011. Timothy is a lieutenant in the US Navy. He and his family live in Naples, Italy. ■■Shipra Srivastava and her husband, Pradeep Singh, welcomed the manager at Reckitt November 5, 2010. Ziad president–relationship welcomed the arrival arrival of their son, Benckiser. He and his is chief financial officer manager in the com- of their second daugh- Eshaan Singh, born family live in Windsor, for Central and Eastern mercial banking group ter, Joyce Zhang, born November 29, 2011. UK. Europe, Prague, and the at M&T Bank. He and September 13, 2011. Eshaan joins older ❾❾ Juana Foster and her Czech Republic at IBM. his family live in Vic- Joyce joins older sis- sibling Alisha Singh husband, Derek Foster He and his family live in tor, NY. ter Sophie. Tao is vice (2½). Shipra is business ’05S (MBA), welcomed Prague, Czech Republic. ■■Kenji Shundo and his president for treasury operations manager at the arrival of their ■■Lydia Perez and her wife, Tomoko, wel- service at JPMorgan. Chase Card Services. son, Edward Mauri- husband, Justin Poole, comed the arrival of a She and her family live cio Foster, born March welcomed the arrival daughter, born May 17, 2007 in Aston, PA. 12, 2012. Edward joins of their daughter, 2009. Kenji is vice pres- ❿❿ James N. Osborn and older brother Alexander Josephine Eileen Poole, ident at Deutsche Secu- his wife, Sadie, wel- 2009 Douglas Foster (3½). born April 9, 2012. rities. He and his family comed the arrival of ⓬⓬ Amanda Yiming Luo Juana is a manager at Lydia is a manager at live in Tokyo, Japan. their son, Kyle Dana Os- (MS) and her husband, Ernst & Young LLP and Procter & Gamble. She ■■Atsuo Tamura and his born, born February 26, Wang Yao, welcomed Derek is vice president and her family live in wife, Nahoko, wel- 2012. James is director at the arrival of their at Mayorautos S.A. They Columbia, MD. comed the arrival of Energy Power Partners first child, Vincent live in Hinckley, OH. ■■Matthew A. Ray and his their daughter, Nozomi LLC. He and his family Wangchen Yao, born wife, Kristin, welcomed Tamura, born December live in New Haven, CT. May 4, 2012. Amanda is 2006 the arrival of their 2, 2011. Atsuo is account- project director at BM ■■Ziad M. Chalhoub and daughter, Allana, born ing manager at YAC Co. 2008 Merchandising Co. Ltd. his wife, Tania, wel- February 3, 2011. Al- Ltd. He and his family ■■Ann N. Breslawski and She and her family live comed the arrival of lana joins older siblings live in Tokyo, Japan. her husband, Tom, in South Plainfield, NJ. their son, Alexan- Gavin (4) and Landon ■■Tao Zhang and his welcomed the arrival of der Chalhoub, born (3). Matthew is vice wife, Yuxiang Han, their daughter, Evelyn

Simon Business ◾ Fall 2012 51 National Council

The National Council of the Simon Graduate School of Business at the University of Rochester is the School’s top volunteer advisory group. The National Council consists of distinguished business leaders who bring particular knowledge and experience to the task of advising the dean on Simon’s strategic plans and long-term goals. The Council has advised Dean Zupan on all phases of the Meliora Challenge, including determining the goals, themes, and key initiatives for Simon’s portion of the University’s $1.2 billion comprehensive capital campaign.

J. Peter Simon ’08S (LLD), Chairman Joseph Abrams ’74S (MBA) Mark S. Ain ’67S (MBA) John W. Anderson ’80S (MBA) Jay S. Benet ’76S (MBA) Kevin P. Collins ’82S (MBA) John L. (Jack) Davies ’72, ’73S (MBA) Bernard T. Ferrari ’70, ’74M (MD) Ronald H. Fielding ’73 (MA), ’76S (MBA) Evans Y. Lam ’83, ’84S (MBA) Daniel G. Lazarek ’91S (MBA) Carlos P. Naudon ’74S (MBA) Steffen W. Parratt ’85, ’87 (MS) David Reh ’67S (MBA) Stephen E. Rogers ’90S (MBA) Michael P. Ryan ’81, ’84S (MBA) Amy Leenhouts Tait ’85S (EMBA) Ralph R. Whitney Jr. ’57, ’73S (EMBA) Janice M. Willett ’78S (MBA) Alan S. Zekelman ’87S (MS) 2013 Simon New York City Conference

May 9, 2013 | Roosevelt Hotel, 45 East 45th St. | New York City Reform at a Crossroad: Economic Transformation in the Year Ahead

From the European crisis to America’s lagging recovery and warnings of the fiscal cliff, economic transformation is a reality. Join us for the fourth annual Simon School conference in New York City as we hear from top CEOs, senior executives, and preeminent faculty as they discuss how to lead in today’s challenging times. Executive of the Year Recipient: Lou Gerstner, Retired Chairman and CEO, IBM

To learn more and register: www.simon.rochester.edu/nyc

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Program, speakers and panelists are subject to change. SMC 10-11-47 Simon School of Business Rochester, New York 14627 Change Service Requested SIMON Simon is bringing its top talent directly to you. SIMON TALENT Register online and make the connection today:

CONNECTION On Campus Events Fall Recruiting Opportunity • October 15–16 • October 22–25 • October 29–November 2 • November 5–9 • November 12–16 • November 19–20 • November 26–30

Regional Events • Stamford, CT October 26, 2012 • New York City January 18, 2013 • Stamford, CT February 1, 2013 • Chicago, IL February 22, 2013 • Rochester, NY International Event April 4–5, 2013

Global Talent Acquisition Conference April 26-27, 2012 www.simon.rochester.edu/ globaltalent

Contact Us CONTINuE ThE SIMON TrAdITION Of Career Management Center GrEAT TALENT AT yOur COMpANy. Simon School of Business 240 Gleason Hall, Box 270107 Rochester, NY 14627-0107 Phone: (585) 275-4881 Register today: www.simon.rochester.edu/recruiter [email protected]