Marshall School of Business

MARSHALL SCHOOL OF BUSINESS MANAGEMENT AND ORGANIZATION

BUAD 499 SUCCEEDING IN PROFESSIONAL SERVICE FIRMS SPRING 2008 Note: This syllabus is a preliminary draft and subject to change.

Professor Alexandra Michel Office: 619 Hoffman Hall E-mail: [email protected]

Class meeting: T/Th 4:00 – 5:50 pm

This course is designed to help undergraduate students understand the unique attributes of professional service firms (PSFs). It is meant to assist you in getting a job and becoming an effective contributor to a thriving PSF by studying (1) the dynamic management practices, structures, and strategies of these firms, and (2) the skills you will need to succeed and manage your career.

It is most relevant for students who want to work in a PSF, such as an investment bank, hedge fund, private equity firm, consulting firm, accounting firm, or law firm. Because these firms have designed management practices that are suited for turbulent environments, many other organizations are currently adopting these practices as they respond to globalization, rapid technological change, and unstable political environments. Therefore, this course is also relevant for students with an interest in learning about cutting-edge management practices and about how to successfully manage one’s career in these complex organizational environments.

SPECIFIC COURSE OBJECTIVES

1. Improve your performance during recruiting by learning, for example, about the kinds of candidates PSFs are looking for, what interview questions they ask, and what answers they expect. 2. Improve your on-the-job performance by learning how to o market yourself, o display leadership skills, o develop mentorship relations, o cultivate “real-time intelligence,” the ability to make fast and accurate decisions, o manage your career from junior employee to partner, and o drive organizational change and performance. 3. Know how to implement cutting-edge practices in other complex and dynamic organizations. 4. Get to know the leading PSFs by studying their practices in depth. 5. Establish contact with and get exposure to decision-makers at leading PSFs. GUEST LECTURERS

Guest lectures will be given by practicing professionals.

REQUIRED TEXTS

Course reader. Langer, E. (1989): Mindfulness. Reading, MA: Perseus. Surowiecki, J. (2005). The wisdom of crowds. New York, NY: Anchor.

DELIVERABLES

Final grades will be determined by the following components and weighting: Product Weighting Due Date

Report (Team) 70% Oral presentation: Last day of class Written report: Exam date

Individual Class Participation 30% Behavioral Anchor Rating Scales and Team Member Evaluation form due March 13, 2008, in class and May 1, 2008, in class

There are no exams. Your grade on the reports is a team grade that will be assigned equally to all team members unless Team Member Evaluations (Appendix B) indicate otherwise.

REPORT AND IN-CLASS PRESENTATIONS

For the report, you will (1) research the strategies and management practices of one PSF in depth through secondary research (newsruns, company materials) and primary research (e-mail-, phone-, or personal interviews with existing or former employees of the focal PSF), (2) critically evaluate them in light of the principles we learn in class, and (3) make recommendations for improvement. This project serves three purposes. First, you will come to understand the innovative organizational practices of PSFs in more detail than case studies and lectures can convey. This is critical for your ability to implement such practices in an organization. Secondly, you will practice an important skill that professionals need to be successful, namely “real-time intelligence.” Real-time intelligence encompasses going out into the “real world” of your client (here: the PSF you are studying), rapidly gathering a large amount of complex information, and analyzing it with the help of general principles. This is precisely the kind of work you’ll be doing as a junior consultant or investment banker. The third purpose is practical and involves giving you a “leg-up” in the recruiting process. Completing your own research and listening to the research of other teams about leading PSFs will provide you with high-quality information that can inform your approach to recruiting. Also, the interviews you conduct will generate exposure to and, hopefully, relationships with decision-makers. The detailed project requirements and grading criteria will be discussed in class.

ATTENDANCE

I take attendance at the beginning of the class. Your attendance and punctuality record will count towards your participation grade. I reduce one full course grade for each set of three absences.

PARTICIPATION

Participation consists of any behavior that reflects the acceptance of personal responsibility for your learning as well as contributions that make the course a valuable learning experience for your classmates. This includes class attendance, punctuality, contributions to class discussions and activities, as well as overall commitment and involvement. Class discussions provide the opportunity to practice speaking and persuasive skills, as well as the ability to listen. Effective class comments may address questions raised by others, integrate material from this and other courses, draw on real-world experiences and observations, or pose new questions to the class. High-quality participation involves knowing when to speak and when to listen and allow others to speak. Comments that are repetitive unrelated to the current topic, disrespectful of others, or without sufficient foundation are discouraged and will be evaluated negatively. Appendix A consists of a behavioral anchor rating scale that lists the behaviors I will evaluate to determine your participation grade. You will evaluate your participation with this scale at the mid-point and the end of the course. In addition, you will identify those individuals who have made the strongest contributions to class discussion. The grade for participation will reflect my evaluation as well as peer evaluations. OVERVIEW OF COURSE MODULES AND TOPICS

1. How to succeed in PSFs: How to get a job, including understanding the recruiting and interviewing process? How to develop a professional identity? Mentorship relations? What kinds of developmental systems do PSFs use? What kinds of cognitive skills are important? How can you develop them? What are the sources of stress in a PSF? How can you best manage it? What tactics and strategies ensure a good start during the important first six months? What happens when a superstar leaves a PSF and why should you care? What types of PSFs are attractive employers now? How can you develop marketing and client relationship skills?

2. Organizational Structure and Strategy: How do PSFs design organizational structures and work processes to be able to compete in a complex and dynamic environment? How do these designs differ from more traditional organizations? What are the implications for managerial work? To what extent can these structures and strategies be adopted by other types of organizations?

3. Leadership: What does leadership in PSFs entail? How is it different from traditional notions of leadership? What alternative methods do PSFs use to influence employees? COURSE SCHEDULE

Class of Session: Topic Reading and Homework 01/15 How to Succeed: Nanda and Vijayaraghavan (2006): S.G. Cowen: New Recruiting Recruits HBS 403-154

01/17 How to Succeed: Interviewing skills. No reading Interviewing

01/22 Background (Guest Nanda, deLong, and Roy (2002): History of Investment speaker) Banking; HBS 902-168 Poulfelt, Greiner, and Bhambri (2005): The Changing Global Consulting Industry (On reserve in library)

01/24 How to Succeed: Nanda and Morrell (2004): Developing Professionals— Development The BCG Way HBS 903-113 Ibarra (2000): Making Partner

01/29 How to Succeed: Groysberg and Snook (2006): Leadership Development Development at Goldman Sachs HBS 406-002 De la Merced (2007). The Firm with a shadow that extends far past Wall Street

01/31 How to Succeed: Burton (1998): The Firmwide 360 Performance Development Evaluation Process at Morgan Stanley HBS 498-053 Rob Parsons at Morgan Stanley (A)

02/05 How to Succeed: Gladwell (2005): Blink; Introduction (pp. 3-17); Critical Skills Chapter 4 (pp. 99-146) Harris and de Long (2000): Fast decision making; Accenture Research Note

02/07 Discussion of course No reading project

02/12 Guest speaker

02/14 How to Succeed: Critical Mandel (2006): The Real Reason You Are Working So Skills Hard Slater (2003): The Cruelest Cure Barlow, Rapee, and Reisner (2001): Mastering Stress Optional: Whetten and Cameron (2005): Managing Personal Stress (On reserve in library) Rosenbloom (2006): Please Don’t Make Me Go On Vacation 02/19 How to Succeed: Critical Langer (1989): Mindfulness (pages 1-80) Skills

02/21 How to Succeed: Moving Groysberg, Balog, and Haimson (2006): The Roller On Coaster Ride: The Resignation of a Star; HBS 405- 031

02/26 Organizational Structure, Eccles and Crane (1988): The Self-Designing Strategy, and Culture Organization Hout (1999): Are Managers Obsolete? Taylor (2006): Here’s an Idea: Let Everyone Have Ideas

02/28 Organizational Structure, Groysberg and Vargas (2005): Innovation and Strategy, and Culture Collaboration at Merrill Lynch, HBS 406-081 Hymowitz (2006) Rewarding Competitors Over Collaborators No Longer Makes Sense

03/04 Organizational Structure, Nanda and Morrell (2005): McKinsey & Company: An Strategy, and Culture Institution at a Crossroads; HBS 903-080

03/06 Guest speaker

03/11 Organizational Structure, Burton and deLong (2000): Morgan Stanley: Strategy, and Culture Becoming a “One-Firm Firm”

03/13 Organizational Structure, John Seely Brown and John Hagel III (2005): The Next Strategy, and Culture Frontier of Innovation Seely Brown and Hagel (2005): Innovation Blowback

03/17- Spring Break 03/20

03/20 How to Succeed: Critical Marketing at Bain & Company (Stanford case study S- Skills M-290)

03/25 How to Succeed: Critical Harding (2004): Cross-selling or cross purposes? HBS Skills case study

03/27 Guest speaker 04/01 Ethics Sen (2002): Does Business Ethics Make Economic Sense? Friedman (2002): The Social Responsibility of Business is to Increase its Profits Roe (2005): The Inevitable Instability of American Corporate Governance. In Lorsch, Berlowitz, and Zelleke (eds.), Restoring Trust in American Business. Khurana, Nohria, and Penrice (2005): Management as a Profession. In Lorsch, Berlowitz, and Zelleke (eds.), Restoring Trust in American Business.

04/03 Ethics Oberholzer-Gee, Reinhardt, and Raabe (2007). UBS and Climate Change—Warming up to Global Action? HBS 9-707-511

04/08 Guest speaker

04/10 Leadership Surowiecki (2005), The Wisdom of Crowds, Introduction, Chapter 9 Recommended (but optional) reading: Chapter 1

04/15 Leadership Gladwell (2002): The Tipping Point, Chapter Four (“The Power of Context”)

04/17 Leadership Thomas and Kanji (2005): Stanley O’Neal at Merrill Lynch Smith (2007): CEO Transforms Merrill, but Shift Comes at a Cost (Wall Street Journal)

04/22 Guest speaker

04/24 Leadership Nanda and Fagan (2004): Tom Tierney at Bain & Company HBS 800-253 (A)

04/29 Leadership Nohria, Kaplan, and Davison (2007): Robert Rubin (A)

05/01 Class Presentations. No readings Conclusions and Course Wrap-Up APPENDIX A: BEHAVIORAL ANCHOR RATING SCALE CLASSROOM PARTICIPATION

OUTSTANDING PERFORMANCE  Repeatedly brings new, relevant, and interesting material to the class (e.g., on the firm that the team covers)  Supports assertions with evidence  Distinguishes between opinions and facts  Demonstrates ability to apply, analyze, and synthesize course material  Brings up questions that need to be explored further  Clarifies points that others might not understand  Offers relevant and succinct input to class  Demonstrates excellent listening, as evidenced by follow-up comments/questions  Demonstrates willingness to take risk in attempting to answer unpopular questions  Is always punctual

VERY GOOD PERFORMANCE  Regularly participates in class discussions  Shares relevant feedback  Consistently demonstrates knowledge of reading assignments  Demonstrates ability to analyze and apply the course material  Demonstrates willingness to attempt to answer questions  Is always punctual

GOOD/AVERAGE PERFORMANCE  Participates in group discussion when solicited  Offers clear, concise, “good” information relative to class assignments  Offers input in class or group, but tends to reiterate the intuitive  Attends class regularly and is always punctual

LOW PERFORMANCE  Confounds opinions and facts  Fails to support assertions with evidence  Occasional input, often irrelevant, unrelated to topic  Reluctant to share information  Does not follow flow of ideas  Drains energy from class goals  Is occasionally unpunctual

UNACCEPTABLE PERFORMANCE  Fails to participate, even when solicited (in small or large groups)  Shows up to class; does nothing  Distracts the group or classroom discussion  Is repeatedly unpunctual

1. Your name: 2. Please circle the section that best reflects your participation. 3. Please write the names of 5 students who you think consistently demonstrate “outstanding” level participation. APPENDIX B: TEAM MEMBER EVALUATION FORM

Class: Your name: Team name: Names of team members (include yourself):

Evaluation for: [name of team member to be evaluated]

Directions: Please evaluate yourself and each of your team members on their contributions to the team using the rating categories below. Submit one copy for each team member to me at the dates listed above. Submit another copy to each of your team members on those dates. 1 = outstanding performance, far exceeds expectations 2 = strong performance, consistently exceeds expectations 3 = competent performance, meets expectations 4 = low performance, falls short of expectations in some areas 5 = unacceptable performance, fails to meet expectations

1 2 3 4 5 Meets commitments reliably and on time. Follows through effectively when a course of action is chosen. Takes initiative not only to identify but also to solve problems. Deals fairly and equitably with team members and other people. Shows initiative and helps the team by volunteering on assignments. Provides others with honest, adequate, and timely information. Listens openly and effectively to other individuals. Is clear when communicating ideas, expectations, and needs. Maintains a positive, constructive perspective. Is persistent in overcoming obstacles when they arise. Continues to operate effectively during periods of high stress.

Please summarize the person’s greatest strengths:

Please summarize areas for improvement: