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HBS Alumni Bulletin Alumni Bulletin DECEMBER 2017 McMAKEOVER —54 — Redefi ning McDonald’s for the modern era YEAR IN REVIEW —40 — 2017’s most important takeaways 1270 HBS_Cover_Final.indd 1 11/15/17 10:03 AM David Birnbaum Rare 1 IMAGE-4265 16” Tahitian 24” Golden 36” South Sea each 15mm X 13mm video clips available * TMM PrivatePrP ivvatte JewelerJeewew leer tot thethe World’sWorldd’ss EliteElitet 589 Fifth Avenue @ E. 48TH Street Seventh Floor New York 212.575.0266 [email protected] www.RARE1.com a direct prime source for gem pearls 2 *HBS 1974 1270 DB1730Cover2.indd Cover2 11/15/17 10:28 AM Features Year in Review 2017 Edited by April White 40 Alumni experts on the year’s most important business trends—and HBS faculty on what to look for in the future Yoga Inc. By Deborah Halber 48 How far can the yoga industry stretch beyond its spiritual roots? Happy Meals (Are Here Again)n) 54 By Dan Morrell DECEMBER The McDonald’s turnaround 2017 isn’t about reinvention—it’s aboutabout remembering whathat made the Golden Arches a global icon in the fi rst place Interest 7 THINGS Alibaba’s blockbuster ambitions, turning tables 06 at Marks & Spencer, and a safer way to name your startup YOU’LL LEARN Ideas IN THIS ISSUE AI’s growing impact, the best business books of 25 2017, and how content is Why robots will save manufacturing jobs P. 36 // driving VR adoption Projected size of the US doctor defi cit by 2025 Etc. P. 34 // The optimal personality mix for effective 17 Impact brainstorming P. 37 // Speed record for a battery- The HBS Campaign Newsletter powered “quadcopter” drone P. 06 // Why real CN1 Class Notes estate investing went global P. 45 // The percen- tage rise in yoga practitioners over the past four ON THE COVER: Illustration by The Voorhes ABOVE: Photo by Melissa Gayle years P. 48 // How to fi x DC’s dysfunction P. 10 December 2017 HBSAlumni Bulletin | 1 1270 HBS_FOB_Final.indd 1 11/15/17 10:13 AM FOUR PROGRAMS. A LIFETIME OF BENEFITS. From top executives and general managers to COMPREHENSIVE high-potential leaders and business owners, each comprehensive leadership program delivers a transformative LEADERSHIP HBS experience. Participants will return to their organizations PROGRAMS with a refreshed perspective and lifelong connections— ready to lead at the next level. OWNER/PRESIDENT MANAGEMENT BEGINS 09 SEP 2018 ADVANCED MANAGEMENT PROGRAM BEGINS 02 APR 2018 GENERAL MANAGEMENT PROGRAM BEGINS 15 JAN 2018 PROGRAM FOR LEADERSHIP DEVELOPMENT BEGINS 09 JUL 2018 LEARN MORE AT WWW.EXED.HBS.EDU/HBSB-CLP 1270 Exec Ed CLP.indd 1 11/15/17 10:31 AM CITED Air Tıme “If we don’t help them, they will likely not break the cycle of recidivism. And the cost will be much more than dollars—it will be the lives of them and their families.” —Entrepreneur, investor, and photog- rapher Chris Michel (MBA 1998) on his experience visiting and photograph- ing Pelican Bay State Prison inmates during a business plan competition and graduation ceremony for incarcerated “entrepreneurs-in-training” (see right). The events were part of a program led by Defy Ventures, which runs entrepre- neurship programs at prisons through- out the country. INPUT OVERHEARD @HBSAlumni: How do you step outside “All leadership is very close in nature to your comfort zone? friendship. That’s all you’re doing—trying @cch Charles C. Huang (MBA 2009): to connect with people, trying to get them Every week I commit to to trust you. And the more authentic that trying something new physically, mentally, or bond is, the better leader you become.” emotionally. So that could —Sarah Wright (MBA 1997) sharing the best business advice she’s ever received—one of dozens of alumni who shared the words of wisdom that shaped be a new workout, reading their career for a special edition of our Skydeck podcast. (Wright, founder of Hull a new book, or art! Street Energy, also refl ects on the year in energy trends on page 49.) Tom Witkowski April White Mary Barnes The HBS Alumni Bulletin (ISSN 1553-1546) is pub- POSTMASTER: Send Senior Director, Associate Director, Copy Editor lished four times a year (March, June, September, and address changes to Alumni Bulletin Alumni Marketing Senior Content December) by Harvard Business School, Soldiers HBS Alumni Records, and Communications Producer Carolann Barrett Fran Fahey Field, Boston, MA 02163. Tel. (617) 495-6554. Soldiers Field, Fax (617) 495-7558. Class Notes (617) 495-6072. Boston, MA 02163, VOL. 93 NO. 4 William Weber Keith Larson Ben Henry Director, Alumni Class Notes Editor Class Notes Email [email protected]. Annual subscription: $50 alumni_records@ Communications Copy Editors (foreign $65). Periodicals postage paid at Boston, hbs.edu David Kroll MA, and additional offi ces. Dan Morrell Web Producer EmDash ©2017 by the President Associate Director, Design and Fellows of Content Manager Jane Mazzarella Austin, TX Harvard College. Business Manager Julia Hanna For advertising infor- SFI-00993 Associate Director, Linda Kush mation, contact Bob Communications Senior Content Fitta, (617) 496-6631. Producer Coordinator December 2017 Chris Michel HBSAlumni Bulletin | 3 1270 HBS_FOB_Final.indd 3 11/15/17 10:13 AM HARVARD STUDENTS ARE AN INVESTMENT ONE SHOULDN’T OVERLOOK. Over the last 3 years, Prodigy Finance has enabled alumni and other investors to pave the future for over 21 Harvard University students. This means our investors earn a financial return, with social impact. /HDUQPRUHDWSURGLJ\ȴQDQFHFRP With respect to the United States, these bonds will be sold outside the United States to non-U.S. persons in reliance on Regulation S. Notes will be sold in the U.S. to U.S. Persons who qualify as "Accredited Investors" under SEC Rule 506(b) or Rule 506(c) of Regulation D, as applicable. We may require you to provide such information, documentation or third-party confirmation as ZHGHHPQHFHVVDU\WRVDWLVI\WKH´UHDVRQDEOHYHULILFDWLRQUHTXLUHPHQWµFRQWDLQHG¬ZLWKLQ5XOH F RI5HJXODWLRQ' ¬ This product may have limited or no liquidity and you may find it difficult or impossible to realise the value of your investment. Your Capital is at risk, be aware that by investing in this product you may lose some or all of the money invested. You have limited recourse to the issuer of the security, no recourse to the borrowers, and there are other risks including those relating to the default or insolvency of the issuer who is not an authorised or regulated firm. This product is targeted exclusively at investors who are sufficiently sophisticated to understand these risks and make their own investment decisions. ¬ Prodigy Services Limited promotes offers of securities for third party issuers to eligible investors. Prodigy Finance Limited loans are offered to eligible borrowers who are studying outside of their country of residence and the loans are governed b y English law. Prodigy Services Limited is a n Appointed Representative of BriceAmery Capital Limited which is authorised and regulated by the Financial Conduct Authority under FRN 489602. Prodigy Finance Limited is authorised and regulated by the Financial Conduct Authority for certain consumer credit activities and for certain investment activities under FRN 709641. Prodigy Finance Limited and Prodigy Services Limited are incorporated in the United Kingdom with registered address at Palladium House 1-4 Argyll Street, London, W1F 7LD. This document has been issued by BriceAmery Capital Limited as a Financial Promotion under Section 21 of the Financial Services and Markets Act 2000. PSL_16062017_P_H_CAT4 prodigyfinance.com 1163 Prodigy Finance.indd 1 11/15/17 10:56 AM Inbox From Das’s desk n old adage about volunteers cites the value they bring to organizations as including “wealth, work, and wisdom.” These “three Ws” defi ne the dedicated alumni body here at HBS. Although being a donor is certainly critical to sustaining the economic model of the School, in this A column I want to address the other two Ws–work and wisdom–and an evolving vision of alumni engagement. By raising your hand as a volunteer, you are strength- ening the HBS brand by embodying the pay-it-forward spirit—whether to current and future students or to fellow alumni. Our task is to make You might be thinking “I don’t have time to men- ourselves and the School tor students” or “I feel awkward asking classmates for more relevant in your donations.” That’s fi ne; tell us how you would like to get lives. We can achieve this involved. In the last few years we’ve added a number of goal most completely new volunteer roles that have expanded our spectrum when you join us. of engagement but don’t necessarily require a heavy lift. Give us a day, or even a few hours. Host a dinner at your home for recent graduates or current students. (We’ll even provide the food!) Put your name on the list career and life purpose. His question dovetailed with of MBA Career Advisors, who make an hour available our own thinking about increasing lifelong learning to a student who wants to know what it took to get opportunities, and that led to development of a pilot, your job. Get involved in a new category of programs three-day program of introspection and peer interac- we’re calling “HBS enabled/alumni owned,” such as tion called The Refl ective Leader. our Alumnae Circles, where we work with you to get In External Relations, our task is to make ourselves an effort off the ground, and you take it from there. and the School more relevant in your lives. We can Or join an alumni club, where leaders organize events achieve this goal most completely when you join us.
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