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University of Michigan Business School Reunion Volume 28, No. 2 Dividend Summer/Falll997

Photo Essay: The Groundbreaking for Sam Wyly Hall 2

6 Tracking Women at the Top: The 1997 Women's Forum 8 Employees Come First at Southwest Airlines

9 Embracing Asia years ago, the University of Michigan Business School made a commitment to Asia. Today, its critical mass of faculty experts and corporate partners sets it apart—and ahead—of all other American business schools.

13 Why You Should Care About Asia... Four Scholars Share Their Thoughts: Want Peace ? Think Trade by C. K. Prahalad Michigan: The Right Stuff for the Asian Century by Linda him 15 Our Struggle with China Is Really with Ourselves by Kenneth Lieberthal Going Global Is a Faculty Affair by E. Han Kim 17 Destiny and William Davidson Institute Bring Chinese Journalist to Michigan 19 The Modern Firm: Is There Liberty and Justice for All? Alfred P. Sloan Foundation sponsors a four-month seminar on corporate governance. 24 Page 17 Treasurers Gain New Certification Program

25 The BBA Program: Unbeatable by Design

26 Harvey Kapnick Shares His Vision, Resources

1 Other Articles

Among Ourselves 4

Alumni Activities 27

Alumni Directory 29

Class Notes 31

Page 25 Quote/Unquote 40

About the Cover

Illustration by Carolyn Reed Barritt

Dean: B.Joseph White; Senior Associate Dean: Edward A. Snyder; Associate Deans: George Seidel III, Janet A. Weiss Editor: Cynthia Shaw; Copy Editor: Fred Wessells; Contributors: Margaret Hooks, Pringle Smif/i; Editorial Assistants:/«&/!«&, PaxBobrow, Mary Joslyn, Joel Knutson Designer: Kalhy Krick, Illustrators: Carolyn Reed Barritt, Ken Ross, UM Marketing Communications; Photographers: Gregory Fox, D.C. Goings, Panljaronski Copyright © 1997 The University of Michigan Business School. This publication is made possible through the generosity of private donations. Dividend is published twice a year, Winter/Spring and Summer/Fall. Highlights is the annual report of the University of Michigan Business School.

^Recycled paper in the spirit of conservation. On May 2, 1997, amid much fanfare and jubilation, members of the Business School community celebrated its two most generous donors, William Davidson, BBA'47, and Sam Wyly, MBA,'57, and commemorated the groundbreaking for Sam Wyly Hall, the building that will stand as a monument to A Moment their altruism. What follows is a photo story of the morning's events: The handshake (top, left): Wyly (left) and Davidson meet for the first time on the steps of the Business Administration Building. Looking on is Cheryl Wyly (far left), Dean B. Joseph White and Karen Weidman. in History... During his remarks, Sam Wyly (top, right) wows the crowd with humor, enthusiasm and heartfelt thanks. "Michigan is a winning team," he exclaims. "I am grateful for what it has Groundbreaking for Sam Wyly Hall given to me."

•• - - :: «! "• i-. v ii n

I If

Pringle Smith (above), former editor of Dividend magazine and current editor of special projects, sits beside Ann Ar­ bor Mayor Ingrid Sheldon. Celebrators (left) occupy every chair arranged under the lawn tent and overrun the sidewalks at the corners of East University and Hill Street to hear the remarks of Dean White, Uni­ versity President Lee Bollinger, Wyly and Davidson. Here, Wyly (far left), Davidson, Weidman, White and David Alger, MBA'68, the Spring 1997 Com­ mencement speaker, listen, with oth­ ers, to President Bollinger.

2 /SUMMER-FALL 1997 Faculty favorites in attendance (top left): Wilbur K. Pierpont, MBA'38/PhD'42, UM vice president and CFO emeritus and professor emeritus of accounting; Paul W. McCracken, Edmund Ezra Day Distinguished Professor Emeritus of Business Administration, Economics and Public Policy; and Alfred L. Edwards, professor emeritus of business administration. Clad in shirts of maize and blue, members of the University of Michigan Pep Band (top right) delight those in attendance with a performance that included "Hail to the Victors." The dirt flies (above): White, Bollinger, Wyly and Davidson scoop the first shovels of dirt. Chocolate mousse adorned with solid chocolate shovels (right) Photos by proves to be the piece de resistance of the Appreciation Luncheon Gregory Fox and that followed the groundbreaking festivities. D.C. Goings

Dividend / 3 MONG OURSELVES Guardian Industries Pledges $5 Million for Building

uardian Industries has place in the history of the tiveness in those economies. Gpledged $5 million for University of Michigan Busi­ "World class programs the construction of Sam ness School," Dean B.Joseph need world class facilities," Wyly Hall, the 75,000- White said at the ground­ Davidson said during his re­ square-foot building breaking ceremony for the marks at the groundbreaking that will be a perma­ new building on May 2. "Bill ceremony. "This new build­ nent home for the Wil­ Davidson is a visionary phi­ ing, which will be a home to liam Davidson Insti­ lanthropist and he believes in the William Davidson Insti­ tute, a nonprofit, inde­ the kind of philanthropy that tute and the Executive Educa­ pendent, educational has tangible and meaningful tion Program, will become a institute devoted to impact. The Davidson Insti­ gathering place for scholars the study of transi­ tute is having impact on the and business leaders from tional economies with emerging market economies around the world." headquarters at the around the world." The anticipated comple­ Business School, and This $5 million gift from tion date for the construction the School's top- the Auburn Hills-based inter­ and renovation project is ranked Executive Edu­ national flat glass manufac­ mid-year, 1999. "People like cation Program. Bill turer comes on the heels of a Bill Davidson and Sam Wyly Davidson, BBA '47, $30 million gift in 1992 to es­ are vital in the growth and is the president and tablish the William Davidson development of an institution CEO of Guardian Institute. The Institute deliv­ such as ours," White added. Industries. ers hands-on assistance to "I speak for the entire Busi­ "Bill Davidson and businesses in emerging mar­ ness School community when Guardian Industries kets and works to improve I say I am immensely grateful Bill Davidson have an important American companies' effec- to them."

Gautam Kaul Named Associate Dean ffective September 1, mation Resources, which cessful participation in our E1997, Gautam Kaul, pro­ includes Library, Computing Executive Education pro­ fessor of finance, joins the and Research Computing. grams and the esteem in academic leadership team of In addition, Kaul will share which he is held by everyone the University of Michigan with Snyder the responsibil­ connected with the School's Business School for a three- ity for Research Support and doctoral programs. I am very year term as Associate Dean. the School's research envi­ pleased to welcome Gautam Along with Dean B.Joseph ronment. He also will serve to a larger leadership role in White, Senior Associate Dean as ombudsman for faculty the school." Ted Snyder and Associate and students. Kaul views the appoint­ Dean George Siedel, Kaul will Kaul joined the Business ment as both an honor and a work closely with the eight- School faculty in 1985 after joy. "I am very excited about member Executive Commit­ earning his doctorate at the it," he said. "The Ph.D. pro­ tee, comprised of Business University of Chicago. He gram has always been close to School deans and elected earned tenure in 1992 and my heart, so I will enjoy my Gautam Kaul faculty members, on all im­ was promoted to full profes­ expanded role there. The portant academic policy and sor in 1993. His research when announcing the ap­ challenges that await me in personnel matters. focuses on the effects of in­ pointment. "He has been an Information Resources are In his new role, Kaul will flation on the stock market, energetic and constructive also extremely exciting. This serve as Academic Director of market microstructure and chair of the Department of is—and should be—the most the Doctoral Program and the behavior of asset returns. Finance. He is also a superb actively changing environ­ Director of the Society of "Gautam Kaul is an out­ teacher. This is evidenced by ment in the Business School. Scholars Program. He also standing faculty member," his winning the MBA teach­ I am happy to know that Joe will be responsible for Infor­ Dean B.Joseph White said ing award in 1996, his suc- considers this a top priority at the School."

4 /SUMMER-FALL 1997 Bollinger Delivers 31st Annual Mclnally Lecture Intellectual Character of the University Is His Topic

<^T have a strong desire to seph White invited him to de­ j from the perceived need to fund for intellectual enhance­ JL strengthen our sense of the liver the Mclnally Lecture, a impose vigorous standards of ment. We need active working institution," University of high honor at the Business review on our activities of groups discussing the intellec­ Michigan President Lee School. The Mclnally lecture teaching and research will ig­ tual strengths and weaknesses Bollinger said to the audience was established in 1966 to nore, and therefore end up of the University and recom­ packing Hale Auditorium for honor the memory of Regent destroying, the subtle tone mending where we should be the 31st Annual Mclnally Lec­ William Mclnally. within the academy that al­ going." ture. "One of the strongest "The University does and lows for and encourages a The University also needs impressions I have returning should encourage the devel­ kind of extraordinary loose­ to unite its various campuses to the University after a little opment of a veiy special intel­ ness or freedom to pursue al­ and improve its physical pres­ over two years' absence is the lectual character, or mental­ ternative perspectives and ence within the Ann Arbor enormously appealing variety ity," he continued, "one dis­ sensibilities, to suspend one's community, he said. "We live and scope of the place. I am tinctive in the degree of its de­ beliefs and enter into other with four or more campuses overwhelmed by the academic sire for openness and explora­ possible beliefs and to en­ that seem to plead for greater quality of the institution." tion and a readiness to en­ gage in intellectual risk-tak­ connections. The athletic On April 8, Lee C. gage in a suspension of belief ing and exploration." fields, the central campus, the Bollinger, the university's new in order to pursue alternative Those in attendance paid Palmer Field area and the president, delivered his first paths of thought." close attention as Bollinger medical school campus, and major public speech since tak­ Bollinger described the gave suggestions for change. the North campus struggle to ing office in February. After a current trend in academe that "Over the next several years, be something more than they seven-year term as dean of promotes rigorous evaluation I hope we can bring our at­ are. . . . We need a new Master Michigan's Law School, and quantification of all facets tentions more to the ques­ Plan for achieving a true Bollinger left for Dartmouth of the higher education sys­ tions of intellectual character sense of unification. More College in 1994. When he re­ tem. Then he shared his own and directions of the Univer­ than a bridge to the 21st cen­ turned to Ann Arbor to be­ opinions. "What worries me, sity. I intend to pursue a tury, we need a bridge to come the 12th president of in sum," he said, "is that the fundraising project directed Palmer Field—and to the aca­ the University, Dean B.Jo­ pressures we are feeling today at building a University-wide demic centers beyond." Business School Welcomes New Dividend Editor ith this issue, Dividend Toledo, Ohio, and to has been my professional goal Wwelcomes its new edi­ freelance business, health, to write for a business maga­ tor, Cynthia Shaw. She suc­ travel and investigative ar­ zine. As the daughter of a ceeds Pringle Smith, the ticles for such papers as the businessman, my fascination founder of the magazine and Detroit Free Press, San Antonio with the workings of the busi­ its editor for the past 28 Express-News and The Christian ness world is long-standing. I years. Science Monitor. Shaw then be­ am honored to succeed Shaw brings a full range came associate editor of Met­ Pringle, and will work hard to of writing, editing and pro­ ropolitan Detroit magazine. continue the great tradition duction experience to the When the magazine was that is Dividend magazine." magazine. While a student at bought and dismantled by Pringle Smith has retired the University of Texas at Crain Communications, she from editing the magazine Cynthia Shaw Austin, she began writing joined the College of Engi­ but continues to work part- port. "Dividend is very fortu­ and selling feature articles to neering at Michigan State time at the Business School as nate to have Cynthia as its major newspapers in the University as director of pub­ the manager of special edito­ new editor," Smith says. "After state. She has been writing lications and public relations. rial projects. She and Shaw being the 'mother' of the professionally ever since. There, she produced the worked together on the Win­ magazine for 28 years, I am Upon her graduation, college's award-winning an­ ter 1997 issue of Dividend. delighted to be able to hand it Shaw joined the staff of West nual reports and brochures. With this issue, Shaw takes over to such a creative and ca­ Texas magazine. She went on "I am thrilled to be at the over full responsibility for the pable new editor. I look for­ to work as a feature writer University of Michigan Busi­ magazine and Highlights, the ward to reading it for many for The Blade newspaper in ness School," Shaw says. "It Business School's annual re­ years to come."

Dividend / 5 Tracking Women at the Top Catalyst President Sheila Wellington Addresses the Fifth Annual Women's Forum

an a woman with talent year, the forum addressed Cand drive who has her board membership as a ca­ eye on the boardroom reer strategy (see boxes). achieve her goal if she con­ Only Wellington's address tinually surpasses perfor­ was open to everyone—stu­ mance expectations? Prob­ dents, alumni, faculty, staff ably not, says Sheila and the public. Wellington, president of "Some claim the glass Catalyst, the national non­ ceiling lies in shattered frag­ profit research and advisory ments on corporate and organization on women's firm floors," Wellington private-sector leadership. told the near-capacity crowd As keynote speaker for gathered in Hale Audito­ the Fifth Annual University rium. "But let me assure you: of Michigan Business School Our research documents Women's Forum last March, that this is not the case. And Wellington offered revealing that is why we do research." data on this issue and oth­ Catalyst, which was ers. The forum brings to­ founded in 1962 for the ex­ gether high-ranking women press purpose of effecting in business, industry, change for women in the academia and government workplace through research Sheila Wellington for a half-day seminar. This and advisory services, re-

Opening the Door to the BBoardrooo m

Ilene Gordon Kathy Kosmatka Mary Maddis Martha Seger Gwendolyn Hatten Stanback

'he Fifth Annual fessional Success." A panel discussion on vice president of research, T.Women' s Forum fo­ Wayne Baker, professor board membership as a Catalyst, panel moderator; cused on board member­ of organizational behav­ career strategy was led by- Dr. Martha Seger, former ship as a career strategy. ior and human resource Cleft to right): Ilene Gor­ Federal Reserve Board Ruby Beale, assistant pro­ management and author don, corporate vice presi­ Governor and visiting pro­ fessor of organizational of Networking Smart: How dent—operations, fessor of economics, behavior and human re­ to Build Relationships for Tenneco, Inc.; Kathy Hillsdale College; and source management, ad­ Personal and Professional Kosmatka, partner—tax Gwendolyn Hatten dressed "Strategic Plan­ Success, discussed per­ practice, Deloitte & Tou- Stanback, associate direc­ ning for Personal and Pro­ sonal networks. che LLP; Mary Maddis, tor, Bear Stearns & Co. Inc.

6/SUMMER-FALL 1997 leased a study in 1996 that When Catalyst asked what surveyed more than 1,200 holds women back, the male women at the vice president CEOs in the survey said the What Gets Measured level and above in Fortune primary problem is that Gets Results ... 1000 companies. women lack "line manage­ The study, titled Women in ment experience." They also Corporate Leadership: Progress said women haven't been in ince 1993, Catalyst has produced an annual and Prospects, includes ran­ the pipeline long enough. Scensus of women holding board seats in the dom personal interviews The women surveyed Fortune 500. Last year, it released for the first time with 20 of the women sur­ agreed that lack of line ex­ The 1996 Catalyst Census of Women Corporate Officers veyed and another 20 perience is an impediment and Top Earners of the Fortune 500. "Catalyst wants (mostly male) CEOs. to advancement, but they to place more women in leadership and gover­ Wellington said Catalyst listed this reason third, not nance positions in corporations and professional gained more information first. The biggest barriers to service firms in America," Sheila Wellington said from these interviews than advancement, they said, is at the Business School's Fifth Annual Women's any previous study. "It's as if male stereotyping and exclu­ Forum. "It is a simple task, but veiy difficult to these women were waiting sion from informal net­ achieve." for a chance to tell us what works. "The issue of glass was on their minds." walls as well as glass ceilings Findings from these two studies include: • In 1996, women broke the 10 percent barrier of total board seats on Fortune 500 companies, with 10.2 percent of the seats (626 of 6,123 board seats), up from 9.5 percent in 1995, 8.7 percent "Catalyst wants to place more women in 1994 and 8.3 percent in 1993.

in leadership and governance positions • Eighty-three percent of Fortune 500 comapnies (417 companies) have one or more women direc in corporations and professional tors, up from 69 percent in 1993, the year Catalyst began publishing its census. service firms in America." • Of the top 100 companies of the Fortune 500 by - Sheila Wellington revenue, 97 percent have at least one woman on their boards. The top 100 are more than twice as likely to have multiple women directors as the bottom 100. When asked how they is an important one," • Women of color represent 12.6 percent of succeeded, two strategies Wellington said. women board directors (53 directors), holding prevailed among the women "It is not sexism, not mi­ 1.4 percent of total board seats. surveyed. The first was con­ sogyny, but informal exclu­ sistently exceeding perfor­ sions and stereotyping that • Fifty-seven women hold the highest-ranking cor­ mance expectations. "But," hold women back. It is those porate officership positions—2.4 percent of the cautioned Wellington, unexamined assumptions, 2,430 individuals with titles of chairman, vice "Catalyst's in-company stud­ those outdated practices, chairman, chief executive officer, president, chief ies demonstrate that women those undone programs and operating officer, executive vice president. who rely on superb perfor­ policies that are keeping our mance as a sole success strat­ nation's high-level talent • Vice president-level titles (executive vice presi­ egy often do not get ahead. pool from virtually dou­ dent, senior vice president, vice president) are That's why a second strategy bling," she said. "Where held by 979 female corporate officers. listed by these women is there is a commitment to critical: finding a style with women, it manifests itself • Forty-seven women are among the five most which male managers are both with presence of highly compensated officers in each company— comfortable. The women in women at the top of the or­ 1.9 percent of 2,500 top earners. our survey succeeded be­ ganization and with women cause they learned the rules on the board." of the game."

Dividend / 7 Employees Come First at Southwest Airlines "The business of our business is people," says Herbert D. Kelleher, the 1997 Business Leadership Award Recipient

e's been called off­ tomer Satisfaction Index, SWA patience, forbearance and Hbeat, zany, even hereti­ has led all major airlines in tolerance." cal. But when Herbert D. customer satisfaction for the •"People don't want to be Kelleher, the unorthodox last four years, 1994-97. The managed; they want to be chairman, president and index is an economic indica­ led. Whoever heard of a CEO of Southwest Airlines, tor of customer satisfaction world manager, a religious points to the bottom line, for 200 companies in 33 in­ manager, a political man­ business people listen. dustries, cosponsored by ager? The carrot always wins That explains the stand­ Michigan and the American over the stick; just ask your ing-room-only crowd in Hale Society for Quality Control. horse." Herbert Kelleher Auditorium when Kelleher "We've enjoyed a lot of •"We believe nothing com­ the general office is there to came to speak and to receive success over the past 25 pares to leadership by ex­ serve them. We tell them: the Business School's 38th years, and we've done it by ample. Every year I give a Our job is to make you look Annual Business Leadership putting our people first," message to the field. We talk good; it's not your job to Award last March. Bjorn Kelleher maintains. "At about what our people have make us look good." Haines, president of the Stu­ Southwest Airlines, employ- done in terms of leadership. •"Explanations are impor­ dent Government Assoc, pre­ For example, we have pilots tant. You can't just say NO. sented the award to Kelleher who load baggage and board An explanation without rea­ in recognition of his "fresh passengers. They are great "People don't want to sons is not good." thinking, innovation, em­ leaders by example." (Kelleher ployee empowerment and fi­ be managed; they admitted he, too, loads bag­ On running a successful nancial performance that are gage—every Christmas at the business a beacon for the business want to be led.... The San Antonio, Tex. airport.) world." carrot always wins •"We burn our manuals every Under Kelleher's leader­ On communication five years and start all over. ship, Southwest Airlines Often we go from 500 pages over the stick; just •"We emphasize communica­ (SWA) has shown a profit ev­ to maybe just 16. You can get tion, which has become a ery year since 1973. This in­ ask your horse." bogged down with an excess buzzword now because cludes the shaky period from of minutiae." people don't understand 1990-94, when the industry as •"We try to have as few rules what it means. They think it a whole lost $12.8 billion. ees come first. We treat as possible. We praise and fa­ has to have a formal struc­ Now the country's fourth- them like they'll treat the vor inconsistency. In fact, we ture, but it doesn't. We re­ largest airline, Dallas-based customer. If our own people go out of our way to be incon­ gard everything as part of SWA has grown from three are happy, they will treat the sistent. Our people have communication. Communi­ jets to a fleet of 245; from customer right; and the cus­ enormous latitude as to what cation can be as simple as about 100,000 passengers to tomer will come back; then they do and how they do it. saying hello to people in the about 50 million annually; we'll all be happy!" We tell them: Do what you elevator." and from 198 employees to Between the jokes and think is right. Lean toward— •"Employees can understand about 25,000 employees. laughter that filled Hale Au­ not away—from the cus­ anything if you communicate The irreverent, wise-crack­ ditorium during Kelleher's tomer." well with them. In most cases, ing Kelleher remains the driv­ speech, the audience was •"A sense of humor is impor­ when people say employees ing force behind the com­ treated to a glimpse of his tant; it relieves strain and don't comprehend, it's not pany that has redefined com­ business philosophy: gives you a sense of propor­ the receiver who is at fault, petition in the airline indus­ tion." it's the sender who is not try, set high standards of cus­ On leadership •"Gratitude [toward employ­ communicating well." tomer and employee satisfac- i ees] is something we express •"Our focus is on leader­ •"You really have to believe tion, and garnered numerous all the time. We let them ship. With us, it's more of an in an open door policy, not accolades. According to the know we don't just value attitude: We try to hire just give'it lip service. We University of Michigan Busi­ them as workers, we value people with great attitudes. make sure our people know ness School's American Cus­ Great leaders need a lot of them as people."

8 /SUMMER-FALL 1997 Twenty year's 'ago, the University of Michigan Business School made a commitment to Asia. Today, its critical mass of faculty experts and corporate partners, coupled with its access to the University's world-class Asian Studies re­ sources, sets it apart—and ahead—of all other American business schools.

ick up any newspaper or magazine, turn tional Business Education located at the Business on network television or your radio and School. "Cultivating faculty expertise in a particular almost everyone will be talking about Asia. area takes time and care. Michigan expertise in Asia, With the spectacular handover of Hong which is the product of much time and care, is great­ PKong by the British to the Chinese now a vivid er than any other top American business school." memory, the stream of debate surrounding the As the world readies for the turn of the cen­ United States' role in Asia has reached a discordant tury—one repeatedly predicted to be the Asian pitch. Everywhere except the University of Michi­ Century—the Business School is actively building gan Business School. Long before Margaret upon its leadership position in the region. It has Thatcher ever contemplated returning the Asian the faculty, the corporate partnerships and the jewel in Britain's crown to the late Deng Xiaoping, school-wide commitment. It also has access to all the Business School was actively building its that is the University of Michigan—indisputably presence in and expertise on the largest continent one of the preeminent universities in the world for in the world. Asian Studies. Students, for example, have the "Faculty represent the heart of any higher unheard-of opportunity to study any one of 14 education program," says Bradley Farnsworth, Asian languages (see box, page 12) at the Univer­ director of the federally funded Center for Interna­ sity while pursuing their business degrees.

Divid Faculty Networks network is centered in India and the other in Even before the University had a Business China (see map, page 12). When you look at how School, it had a relationship with Asia. In 1870, a we, as a Business School, have been able to move young graduate of the Law School embarked on a into Asia, it has been because of individual faculty world tour to gather natural history for the fledg­ ties to these networks." ling University's new museum. The owner and publisher of Ann Arbor's local newspaper financed Corporate Partnerships Hong Kong Joseph B. Steere's adventure to, among other Michigan, in fact, is creating a network all its places, China, Formosa (now Taiwan), the Philip­ own. Over the years the School, through the pines and the Muluccan Islands in return for actions of its faculty, has built strong partnerships written descriptions of his trip. Years later, when worldwide with American multinationals and the United States acquired the Philippines follow­ foreign corporations. Whirlpool, AT&T, Citicorp, ing the Spanish-American War, it was Steere's Caterpillar, Cummins Engine, The Daewoo Group, former student, Dean C. Worcester, himself a UM Cathay Pacific Airways and Vinacoal, the state- India professor of zoology specializing in the Philippines, owned coal company in Vietnam, are but a small who President William A. McKinley dispatched to sample of the Business School's partners in Asia. the colony to serve there as the American expert-in- What results from these mutually beneficial associa­ residence. tions is a rich mix of opportunities for increasing For decades, men and women from throughout faculty expertise in the region, enriching the Asia have been coming to curriculum and providing the Business School. As a ^^^^^^^^^^^^^^ ^^^^^^^^•••i^^™ numerous in-company Indonesia result, Michigan graduates, student assignments that such as Amnuay Viravan, The Global MBA Program is providing yield real-world, cross- MBA '54/PhD '59, the graduate-level education to The cultural know-how in former Deputy Prime foreign markets. Minister and Finance Daewoo Group's next generation Corporate relation­ Minister of Thailand, and ships have led to the Roberto de Ocampo, MBA of business leaders; the Executive establishment of the Japan '70, Secretary of Finance Mitsui Life Financial for the Philippines, are in Education Program is providing Research Center, the high-ranking positions in continuing education for its executives. Nippon Telephone and business, government and Telegraph Program of education throughout the ^^^^^^^^^^^^^™ ^^™?^^™«^^^^^^™ Asian Finance and region. Currently 25 Economics and the Japan Technology Management Program. They also have Laos percent of the MBA program is international, the majority coming from Asia. led to educational partnerships for MBA and What draws Asian students—and domestic executive education. One example is the School's students interested in Asia—to the Business School relationship with The Daewoo Group. Through the is the faculty. Of the 130 faculty, 10 are internation­ Global MBA Program, Michigan is providing ally recognized experts in Asian Business. (You will graduate-level education to the corporation's next find four faculty opinion pieces on the following generation of business leaders; through the Execu­ tive Education Program, it is providing continuing Malaysia pages.) More than 30 others are expert in tradi­ tional business disciplines such as finance or education for its executives. "One of the major accounting with specialties in Asia-related applica­ benefits of the Global MBA Pro ffram is that the tions. This scholarly concentration, the research it foreign students in those programs spend a signifi­ spawns and the corporate partnerships it yields cant amount of time here at the Business School," shapes the School's strategy in Asia and infuses the says Edward A. Snyder, senior associate dean. This undergraduate, graduate and executive education fall, 40 second-year students from Daewoo will curricula with real-world perspective and rigorous begin an academic year of study at the Business EMyanmar in-company learning. School. "Our expectation is that the Daewoo "Asia is typically viewed by the United States as a relationship will not only continue but grow and geographic region," says C.K. Prahalad, the Harvey deepen in the next decade," Snyder adds. C. Fruehauf Professor of Business Administration. Another example of partnerships are those "This view is very limiting. Much more than mere forged by the William Davidson Institute. The geography, Asia represents two vast, ancient Institute, which is located at the Business School, is networks of people that span the globe. One a nonprofit, independent, educational institute

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10/SUMMER-FALL 1997 devoted to the study of transitional economies. It Students: The Heart of the Enterprise offers project- and business-based assistance to Ultimately, the wealth of the faculty and the businesses operating in the transitional economies corporate partnerships plays out in the students' of Eastern Europe, the former Soviet Union, Latin learning environment. At the Business School, that America and Asia. In June, the Institute organized means the classroom and the in-company settings. a trip to Vietnam for Dean B.Joseph White, Senior The University of Michigan is one of the few Associate Dean Snyder and Davidson Institute universities in the world, if not the only, that has Director Jan Svejnar. The threesome met with both a business school and an Asian Studies executives from Vinacoal, the country's state-owned Program that is ranked among the best in the coal company, as well as the U.S. ambassador to world. It is the only university that integrates these Vietnam; government, business and education strengths into degree programs for the five major leaders; and two MBA students, selected as economic regions of Asia—Japan, China, South Davidson Institute Fellows for summer internships Asia, Korea and Southeast Asia. in Vietnam. The trip celebrated the Business Through the Business School's Asian Business School's two-year relationship in the country. The Program students can earn MBA degrees with Davidson Institute has provided executive educa­ specific areas of emphasis in Asian business while tion-level training at Vinacoal, and two MBA teams completing masters degrees in Chinese, Japanese, completed important, in-company projects there. South Asian or Southeast Asian Studies. There also "Our presence in Vietnam—and throughout Asia— is a certificate program option for those interested is highly valuable to and for students, faculty and in Korean Studies. corporate recruiters," Since 1990, the Business Svejnar says. School has hosted an annual To facilitate Asian Business Conference. activities in Asia, the The Asia-Pacific Human Resource Organized by MBA and joint Business School Partnership is a newly formed degree students and faculty opened a permanent advisors, the full-day confer­ satellite office in Hong consortium of senior Asian, American ence brings together students, Kong in March. The faculty and industry execu­ office serves as an and European human resource tives for discussion, debate immediate point of and networking activities. The contact in the region. executives from 30 major companies 1997 conference, "Investment It represents the that operate in the region. Strategies for Emerging Asian Global MBA Program, Markets," included three provides front-line concurrent panel discussions management of the on the markets of India, Executive Education Programs and assists with China and ASEAN—the Association for Southeast coordination of outreach activities like those Asian Nations. Representatives from a cross-section sponsored by the Davidson Institute. The office of industries were involved in the discussions. also is home to the Asia-Pacific Human Resource It is precisely these on-campus opportunities Partnership, a newly formed consortium of senior coupled with off-campus in-company learning that Asian, American and European human resource forms the central core of the Business School's executives from 30 major companies that operate mission to provide superior general management in the region, including AlliedSignal, Digital education. Last winter term, for example, 56 Equipment, General Motors, Samsung, Sony, companies sponsored in-company multidisciplinary Honda, Philips Electronics and Volkswagen. The action projects. Thirty-three of the projects were group meets twice a year to engage in high-level outside the United States with a significant number discussion, benchmark one another and identify in Asia—the continent containing half the world's and share best-practice information. Arthur Yeung, population and accounting for nearly twice as PhD '90, is the director of the office. "The opening much world trade as Japan. It is this level of activity of this office is a very natural next step in and the commitment it represents that makes the Michigan's commitment to expertise and educa­ University of Michigan Business School ready for tion in Asia," White says. "It is also a natural next the Asian Century. Embracing Asia many, many step in the Business School's deep and permanent years ago was the right decision. The Business commitment to management education and School has the faculty, the corporate partners and development in this part of the world." the ever-expanding world class alumni base to serve it well. •

Di The Indian 8L Chinese Diasporas Understanding Asia: Languages You Can

THE INDIAN MIGRATION: Learn at the University STATES WITH SIGNIFICANT COMMUNITIES OF INDIANS • Afghanistan • Jamaica South Africa • Australia • Kenya Sri Lanka East Asia: • Bangladesh • Lebanon St Lucia Classical Chinese • Bhutan • Libya St Vincent • Brunei • Malaysia Suriname Classical Japanese • Canada • Mauritius Tanzania Korean • Fiji • Myanmar Trinidad & Tobago • Guadeloupe • Nepal United Arab Emirates Modern Chinese • Guyana • Pakistan Uganda Modern Japanese • Hong Kong • Reunion United Kingdom • India • Singapore United States Zambia South Asia: THE CHINESE MIGRATION: Hindi-Urdu (India) STATES WITH SIGNIFICANT COMMUNITIES OF CHINESE • Australia Italy • Singapore Punjabi (India) • Brunei • Jamaica • Suriname Sanskrit (India; dead language) Cambodia • Malaysia Taiwan • Canada Mongolia Thailand Tamil (India) China • Myanmar • Trinidad & Tobago Tibetan Costa Rica Paraguay • United Kingdom Indonesia Philippines • United States Vietnam Southeast Asia: I INDIANS Indonesian CHINESE • INDIAN AND CHINESE Tagalog (Philippines) Thai Source: The State of the World Atlas by Michael Kidron and Ronald Segal (London: Penguin Books, 1995). Vietnamese

12 /SUMMER-FALL 1997 Why You Should Care About Asia Four scholars agree: The U.S. stands only to gain by embracing Asia. Gain profits. Gain power. And, most importantly, gain peace. Want Peace? Michigan: The Think Trade Right Stuff for the Asian Century or me, the most Finteresting starting //V nn Arbor is the point for a discussion on / Vcenter of the world Asia is the fall of the for Asian studies," an Berlin Wall. That event academic from a enabled approximately prestigious university in 3.5 billion people to France once told me. join the free markets of He is correct. The the world. It marked University of Michigan is the collapse of an probably the number- ideology that had one institution in the C.K. PRAHALAD is the inter­ substantially influenced LINDA LIM is an Associate nationally renowned Harvey C. Professor of Business Administra­ world on Asian Studies. Fruehauf Professor of Business the way people thought tion and the director of the Its ties to the region go Administration. He is the author about how to succeed Business School's Southeast Asia of Competing for the Future, the back more than 100 and how to create a just Business Program. She teaches best-selling primer on corporate "Business in Asia" and "The years. For example, in strategy for a global economy. His society. Today, no one World Economy" and initiated 1898 when the United book, now translated into 14 is debating whether or and serves as the faculty advisor languages, topped nine consecu­ States took possession of not socialism or Com­ for the Business School's annual tive bestseller lists for six straight Asia Business Conference. Lim is all Spain's colonies after months in 1995. Prahalad, who munism is good. editor of the Journal of Asian the Spanish-American was born in India, consults Instead, everyone the Business and has been published War, the first U.S. regularly with governments and widely. Her most recent article, multinational corporations world­ world over is discussing "Asia 2000," was published in administration dis­ wide, including the government how fast and by what the March-April 1997 issue of patched to the Philip­ and business entities of India. The China Business Review. process nations can pines, the largest transform themselves into market-based societies. colony, included a UM Who would have imagined, 15 years ago, that China faculty member. More than a century of ongoing schol­ would become a major trading partner of the United arly activity throughout Asia has enabled the university to States? I predict that China will become our biggest amass an unparalleled collection of resources and trading partner, quickly surpassing Japan. Since most of connections. The Association for Asian Studies, an the countries of Asia are starting with a minimum of independent international association for Asian Studies infrastructure—ports, roads, telecommunications, power, scholars, has its headquarters in Ann Arbor. At the environmental protections—there is an extraordinary University of Michigan, students can study the region, opportunity for American companies to participate in and, more importantly, they can learn its languages—14 building these systems. In power and in telecommunica­ different languages to be exact. At the Business School, tions, China is one of the largest growth markets in the MBA students may pursue joint degrees in business and world. India is emerging as a significant market as well. Chinese, Japanese, South Asian or Southeast Asian Even in consumer goods like soft drinks or personal care Studies. The general MBA curriculum offers three products, there are huge opportunities in Asia. I do not elective courses on business in different parts of Asia. I do mean easy opportunities. They are large opportunities. not think any other top business school in the country Perceptions of Asia in the West are evolving. For does this on a regular basis. example, from the time of the early colonizers in the Few disagree that the coming century will be the Asian 1700s, Eastern civilization has been viewed in the West as century just as the 20th century was the American cen- continued next page continued next page

Dividend / 13 PRAHALAD continued LIM continued a lesser civilization. Since the Korean War, it has served as tury. Because of the resources and expertise found at the a source of cheap labor. More recently, the East has been University of Michigan and its Business School, this new viewed as a market for Western products. Few today think Asian century offers us the challenge and the reward of of China or India as a home of global competitors. It is educating generations of business people who are truly terribly important for us—for world peace as well as for familiar with other languages and cultures—business world trade—to come to terms with the fact that our leaders capable of shaping the economies of the world. Asian counterparts are our equals. We must overcome the The return of Hong Kong by the British to the Chi­ fear of dealing with people who are different. Now, more nese this summer marked the symbolic end of 500 years than ever, there is a need for understanding and for of Western domination of the world economy and of working together toward shared solutions. For me, world Asia. For Hong Kong, the hand-over represented an trade is an alternative to the Cold War. exchange of one sovereign power for another. For the The best way to create peace is to create interdepen­ United States this transition may stand for much more. dence. When nations are interdependent, they cannot shoot at one another because if either does, both will die. Let me give you an example. Sundaram Fasteners is an Indian multinational supplier of auto parts. This year the company was elected the best supplier for General "I believe future economic influence and Motors Worldwide. It is in the best interests of both business leadership -will reside ivith those corporations—and both countries—that each prospers. I must also add that China and India are both great who are truly familiar with other societies military powers. If there is ever going to be an attempt at world domination, it may come from China or the Indian and their business operations." subcontinent. So there are more reasons than just trade to establish an active dialogue between the West and East. Approximately 2.5 billion people live in Indonesia, China and India. That is half the world's population. We Although the U.S. is and always will be a superpower— cannot ignore half the world's population. My long-term the leading military power and the largest economy for at interest in Asia stems from the belief that creating a least another quarter century and one of the world's bridge between the United States and Asia is as critical to richest countries—it will increasingly have to share its trade as it is to peace. place at the center of the world economy. European Asia is undergoing its own transition from depen­ countries accepted the fact long ago that they are no dence to interdependence. The nations of the East have a longer superpowers. Like most other countries, they can difficult time dealing with the West. Interdependence is play by other people's rules. They can be accommodat­ a relationship among equals. Asian countries are not used ing. Because the United States is a dominant hegemonic to dealing with the West as equals. Japan still has prob­ power, it often doesn't think it has to adjust to others. But lems after 50 years. Both the West and the East are going it does. through fairly dramatic shifts in their perceptions of one As Asia's prominence in global business and politics another. My sense is that both have to learn. increases, Americans' knowledge of the region and its The United States will continue to be the number-one people must increase also if they are going to participate power in the world; there is no question in my mind. I do fully and effectively in this dynamic region. Education believe, however, that if we get deeply engaged in Asia, offers Americans the knowledge they need for success in there will be significant opportunities for learning and the next century; learning the nuances of different innovation. As an academic institution, we can help cultures and languages is part of this. With skilled use of bridge the divide between Asia and the United States. As such knowledge, Americans will be able to participate in a world-class business school, we can foster economic global commerce and politics as true partners with other growth. We teach people how to create wealth and how to nations. compete in the global economy. In doing so, we are I believe future economic influence and business working to increase interdependencies among the leadership will reside with those who are truly familiar people, companies and countries of the world. with other societies and their business operations. My If we think of our work as creating or building a better goal is to educate ever-increasing numbers of business world through a shared understanding of how to create students who will know the languages and diverse cul­ wealth for global prosperity, then our relationship with tures of Asia and understand the mindset of Asian Asia becomes an integral part of our mission as a school. customers and competitors. The University of Michigan This, I think, is very exciting. • and its Business School are in the enviable position of already having the necessary resources to do just this. •

14/SUMMER-FALL 1997 Our Struggle Going Global is with China Is a Faculty Affair •? ' \ Really with ^^fe_ Ourselves ^e are talking J W:abou t a part of • A K the globe where more * ^H - .^n ly do we, the than half the world's ^^fS&M most powerful na­ population lives and / : VW2 '-^M WJW'/ tion on the planet, have where most of the so much trouble devel­ world's economic oping a constructive, growth is taking place. I long-term strategy for want us to be a part of dealing with China? The that—a part of Asia. answer lies in our his­ Our job, at the Univer­ KENNETH LIEBERTHAL is the E. HAN KIM is the Fred M. sity of Michigan Busi­ William Davidson Professor of torical struggle over the Taylor Professor of Business Business Administration, the purpose of American Administration and Professor of ness School, is to Arthur F. Thurnau Professor of foreign policy. Finance and International Busi­ expand the boundaries ness, director of the Mitsui Life Political Science and a research of knowledge and associate of the Center for Should American for­ Financial Research Center, di­ Chinese Studies at the University eign policy be one of rector of the NTT Program of incorporate those of Michigan. He has written Asian Finance and Economics advances into manage­ pragmatism, of realpolitik and director of the Michigan nearly a dozen books and num­ rial expertise. Countries erous articles. His most recent that meets our needs for Global MBA Program for The book, Governing China: From security, diplomatic le­ Daewoo Group. He has written are most in need of Revolution Through Reform, was more than 50 articles on corpo­ state-of-the-art manage­ verage, economic devel­ rate finance and teaches corpo­ published in 1995. That year, rial tools when their Foreign Affairs magazine opment and protection rate finance in the MBA and Ex­ published his article, "A New of American interests ecutive Education programs. markets are growing China Strategy." He teaches MBA abroad? Or should it be rapidly. The countries and Executive Education courses on China. a policy of zealous mor- of Asia need what we have to offer. We can make a vital alism, one that makes difference there. But in order to do so we must first of all the spreading of democracy and freedom its first priority? be cognizant of the Asian economic environment. We This, we have never decided. Instead, through much of have to be a part of their world. our recent history, we have managed to achieve both That is happening at the Business School. For ex­ ends. During the Cold War, confronting and defeating ample in 1990, Mitsui Mutual Life Insurance—one of the the Soviet Bloc was a moral imperative. Any pragmatic largest life insurance companies in Japan—gave the policy that contributed to that end met the test of being Business School $3 million to establish a research center moral. For example, the United States ardently supported to study Asian finance and economics. The goal of the Mobuto Sese Seko in Zaire, one of the world's great klep­ Mitsui Life Financial Research Center is to encourage tomaniacs and a massive violator of human rights. His be­ research in Asian markets and to understand how world havior did not make a difference; he was anti-Soviet. And events, specifically U. S. events, affect the Asian econo­ despite the fact that Indonesian President Suharto mies and how the Asian economies affect global markets. slaughtered half a million civilian citizens—almost all of To achieve this, the Center sponsors research by Michi­ whom were Chinese because the Communist Party in In­ gan faculty and doctoral students and holds periodic donesia was dominated by the Chinese—he was consid­ symposia on financial topics relating to Pacific Rim ered a good anti-Communist leader by the U.S. countries. It also supports Japanese scholars in residence Think back: In the 1980s, China was heralded as the at the Business School. only radically reforming Communist country in the The Mitsui Center's activities raised the profile of the world. Earlier, in 1978, Time magazine celebrated Deng Business School in Japan, and helped us to build a Xiaoping as the Man of the Year for his sweeping eco­ relationship with Nippon Telephone and Telegraph. nomic reforms. Then, on June 4, 1989, there was the This, in turn led to a $1.5 million gift in 1995 to establish Tiananmen Square massacre that shocked the world. In the NTT Program of Asian Finance and Economics. NTT the next six months, the entire Soviet empire collapsed. is the largest company in Japan and is the Japanese In the next two years, the Soviet Union itself collapsed. equivalent of AT&T. The NTT Program's objectives are With this climactic change, the great fulcrum of Ameri­ virtually identical to those of the Mitsui Center, and the can foreign policy—squelching Communism—ceased to means for achieving those objectives are complementary. exist. The disappearance of Communism made the Each year, the NTT Program alternates between funding

continued next page continued next page

Dividend / 15 LIEBERTHAL continued KIM continued United States' moral leadership role—to us—all the one or two fellowships for Business School faculty and/or more important. People of the world, we believe, looked doctoral students conducting Asian-related research and to us to spread democracy and freedom. Suddenly our sponsoring a visiting scholar-in-residence from Asia at the values became the sole basis for our foreign policy. Business School. This, I think, is a serious mistake, especially in our Both the NTT Program and the Mitsui Life Financial dealings with China in the Post Cold War era. China pub­ Research Center foster the development of greater licly violated our national values at Tiananmen Square. awareness and expertise on both sides of the Pacific by But in reality national values and national interests are facilitating an essential, up-close, cross-cultural and cross- identical only at home. At home, our interests are in pre­ market exchange of information. The results of these serving the democratic system with a high degree of hu­ efforts infuse undergraduate, graduate and Executive man rights and extraordinary personal freedom. When we go abroad, however, our values and our interests do not coincide in any precise fashion. Our internal struggle "In 1995, at the request of Daewoo's chairman, on this issue has caused our position throughout Asia to erode for the simple reason that no other country Kim Woo-Choong, the Business School wholly conflates values and interests. All seven leading in­ dustrialized nations were deeply offended by Tiananmen developed an MBA program for rising stars Square. However, six of the seven—Canada, France, Germany, Italy, Japan and the United Kingdom—never within this multinational conglomerate." lost sight of their long-term interests in the region. Only we did. Education curricula because of the faculty involvement in all aspects of these endeavors. I think that most faculty at the University of Michigan "By any imaginable measure, America is Business School already have an international orientation. What is needed to truly succeed in Asia is also a global the big winner in globalization." cultural orientation. By this I mean the experiential cultural awareness necessary for true cooperation and effective teaching. When it comes to China and the whole of Asia, there is Many of you are aware of the Business School's relation­ only one critical question, Will the United States be a part ship with The Daewoo Group, one of the largest corpora­ of this region's ascent? If we are not a part of it, I would tions in the world with 1996 sales of $60 billion. In 1995, at argue our own future economy will fare much worse. Asia the request of Daewoo's chairman, Kim Woo-Choong, who represents rapidly expanding markets. Some political is a member of our visiting committee, the Business School leaders in the U.S. advocate a protectionist approach to developed an MBA program for rising stars within this the world. They say globalization of the economy is inevi­ multinational conglomerate. The students, most of whom tably unsettling and painful to everyone because it causes are in their mid 30's, must meet our rigorous entrance and dislocations. They are right; the transition is not easy. graduation requirements. There is no difference in the But by any imaginable measure, America is the big quality of the degree. But the process for attaining the winner in globalization. We have the technologies, we degree is different from that experienced by traditional have the capital, we have the capital markets and we have MBA students studying in Ann Arbor. Daewoo executives the know-how that simply puts us way ahead in that pro­ learn by satellite and advanced video conferencing coupled cess. In my opinion, the only way the United States can with on-site teaching by Business School faculty, two semesters shift from a values-based foreign policy to a foreign policy in Ann Arbor, and a final in-company project at a Daewoo that properly balances values and interests is if the White site in Seoul. House takes the lead. It will take nothing less than a ma­ This intense interaction of Michigan faculty and Daewoo jor presidential initiative to turn this situation around. managers on two continents in two distinct cultures has My worry is that if we do not make this policy change succeeded not only in training future business leaders for in the very near term—if we do not resolve our internal this major multinational corporation but also furthering struggle over the purpose of American foreign policy— tremendously the Business School's efforts to enhance the we may stumble into an otherwise-avoidable Cold War global awareness of our faculty. I believe this globalization with China that would reverberate throughout the whole of our faculty is critical to our mission and to our success as of Asia. If that happens, it will represent a monumental a consistently top-ranked Business School in the next policy failure in Washington and in China too. It will di­ century. You can only globalize the curriculum when you vide Asia and leave the United States with no secure al­ globalize the faculty. lies. This possible outcome would represent, in my opin­ ion, the result of a dangerous myopia.

16 /SUMMER-FALL 1997 Destiny and William Davidson Institute Bring Chinese Journalist to Michigan

hould you meet Jin Weiyi, a William Davidson Institute Business Journalism Fellow from the highest-ranked television station in Shanghai, the first thing he will tell you is that destiny brought Shim to the University of Michigan. Before leaving China, this 30-year-old anchorman and award-winning business reporter pulled out a trusted friend, the textbook he had used to learn English many years before, and was stunned to see on the familiar title page something he had never noticed: Ann Arbor, The University of Michigan Press. "I couldn't believe it," he says, still amazed at the coincidence. "After all these years, that is where I was going." Just as Jin is certain his destiny is linked to UM, he also believes that China's future and that of the U.S. are connected. He is not alone in this thinking. University of Michigan Business School scholars and corporate friends worldwide are convinced the nation's long-term eco­ nomic health is tied to China and the whole of Asia. It is precisely because of this that the William Davidson Institute—a nonprofit, independent, educational insti­ tute devoted to the study of transitional economies headquartered at the Business School—developed a special fellowship program for journalists from countries in the throes of economic change. "A key aspect of a transitional economy—and market-driven economies, too—is the free flow of information," says Hans-Christian Brechbuhl, managing director of the Institute. "Jin is our first journalist to come from a news organ that is owned by the Chinese government. Journalism is a key vehicle for educating the general public. The better Jin under­ stands market economies, the better he can transfer this NAME: Jin Weiyi business knowledge to the Chinese people." AGE: 30 Jin began his four-month crash course in free markets HOME: Shanghai, China the moment he arrived at Detroit's Metro Airport. The OCCUPATION: Television anchorman and award- winning business journalist for Shanghai Television lessons continued non-stop both inside the classroom and Station, the largest television station in East China and out. Finding an apartment was his first challenge. "You one of the largest in all of China with 100 million come here, to this country, by yourself and then you have viewers. to talk to a lot of strange persons [in order to find an PROFESSIONAL INTERESTS: He is writing a book on the psychology of television audiences in anticipation of apartment]. It is very difficult," he says. "In Shanghai, you ever-greater competition among Chinese television never have to pick up a phone to call a stranger to ask, stations. "The research of audience psychology is almost 'Do you have an apartment?' Even if you come from a blank in China and few overseas references concerning other Chinese states, you don't have to find an apartment the topic are available in the country." PROFESSIONAL GOAL: "I expect to integrate knowl­ owned by a private person. Everything is state-owned." edge and experience acquired through the [fellowship] Jin quickly cleared this hurdle, feeling quite thrilled program with the situation in China, in a bid to make my with his new-found home-hunting skills. "We find the contribution to a more objective and responsible media in China." process of finding a place to live to be particularly LENGTH OF STAY IN THE U.S.: Four months at the instructive for the fellows," says Brechbuhl. "We consid­ University of Michigan; six weeks traveling to New York ered providing more assistance but concluded the tCity, Washington D.C., San Francisco and Los Angeles.

Dividend / 17 exercise is too valuable, in terms of experiencing a Given that television has only been in existence in competitive marketplace, to curtail." China for about 20 years and transition to a market In the classroom from January until April, Jin studied economy only 10 years underway, business news reporting Transitional Economies of Russia and Eastern Europe for television is relatively new. Jin, with his five years with Jan Svejnar, the director of the Davidson Institute experience, is considered a senior business reporter. The and the Everett E. Berg Professor of Business Administra­ William Davidson Institute sponsored him, as is their tion and professor of international business and business practice, as a Michigan Journalism Fellow. The Michigan economics. He wanted to understand how other Commu­ Journalism Fellowship is one of the three most prestigious nist countries are bringing about economic change. He mid-career opportunities for journalists in this country. also took The Great Chinese Economy at UM's School for To win this dual fellowship—as he has—a foreign Literature, Science and the Arts. "I wanted to study in this journalist must be of the first order. class because I think I should learn the American view toward China's economy," he says. Jin also furthered his research on the psychology of television audiences for a book he began writing before Jin has interviewed Alan Greenspan, chairman he was offered the fellowship. He is enamored with the concept of competition particularly within the media and of the Federal Reserve Board, and William wants a hand at fueling it. In the autobiography he Donaldson, chairman of the New York Stock submitted to the Institute as part of the application process, he writes: "I think people have an inviolable right Exchange. He also has interviewed Chinese to know the truth and ajournalist has a sacred mission to reveal the truth. But this is just the most difficult part of Presidentjiang Zemin. But it was his coverage being ajournalist in China....Take my own experience, for example. I have been asked to play up stock price of the 1995 National Peoples Congress that surges and play down price plunges because some won for him a major broadcast news award. officials think price falls might be associated with prob­ lems in the country's economy and might be negative to social stability. Such practice could do nothing but undermine the public's trust of the mass media, which Jin has interviewed Alan Greenspan, chairman of the would do the government no good. The situation has to Federal Reserve Board, and William Donaldson, chair­ be changed." man of the New York Stock Exchange. He also has For countless years, Jin says there have been two interviewed Chinese Presidentjiang Zemin. But it was his metaphors that have characterized Communist life in coverage of the 1995 National Peoples Congress that won China. The first is "Da Guo Fan." This translates as "Big for him a major broadcast news award. At one session, the Rice Wok" and means that with a government-controlled vice mayor of Shanghai, the person responsible for the economy no one will starve. Everyone will always find Pudong New Area, the largest economic development food in the big rice wok. No promises are made regarding zone in China, held up a political cartoon from the Boston the quality or the quantity of food, only that because of Globe. It was a picture of a Chinese hand using chop sticks the benevolent wok, everyone will eat. Similarly, Tie Fan to pick up the flag of the United States. The vice mayor Wan, which rhymes with Da Guo Fan, means "Iron Bowl" interpreted for his audience the meaning of the cartoon. and describes the security of one's job—as strong as iron. It asks, he said, "Should other countries be afraid of a Like the Big Rice Wok, the Iron Bowl guarantees only a strong China?" job. Employment satisfaction, opportunity for advance­ President Zemin was in attendance. He acknowledged ment and salary increases are irrelevant. But ever since that many countries are afraid of a strong China. Then he the late Deng Xiaoping, the father of China's economic went on to counter this logic. "If the Chinese people, all reforms, first initiated change in the Communist country, one billion of them, have no food, they will be rushing to the two metaphors have undergone their own change. other borders," Zemin said to the assemblage. "But if "Since the 1980s, there is a new popular saying in China, China is strong, it will be a country of peace and stability." 'Dapuo Da guo fan, Duandiao Tie fan wan.'" says Jin. Jin reported this story. He was the only journalist to do "This means 'Smash the Big Rice Wok, Take Away the so and for it he won a major prize. "I am not the man to Iron Bowl.'" make economic reform,"Jin says, "but I can influence it with my program."

18 /SUMMER-FALL 1997 Business Leaders and Scholars The Modern Firm: Debate the Funda­ mental Questions of Corporate Governance in Is There Liberty a Four-Month Seminar Sponsored by the Alfred P. and Justice for All? Sloan Foundation

By Cindy Schipani and Jim Walsh

ou have to agree: The issue of corporate gover­ nance and the role of the firm in the next century is a topic deserving serious debate. It is likely you also will agree the mere complexity of the subject stymies such debate. Not so at the University of Michi­ gan Business School. As one of the world's foremost centers for business education, we foster such critical and complex debate. With the generous support of the Alfred P. Sloan Foundation, we just completed a four-month seminar series devoted to the questions: What is corporate governance? and What are the Cindy Schipani and Jim Walsh, both professors purposes and accountability of the modern firm? at the University of Michigan Business School, Practitioners and theorists from the worlds of management, were the principal investigators for the Alfred P. law, policy, finance and journalism, including Norman Augustine Sloan seminar series on corporate governance. of Lockheed Martin Corp.; Muhammad Yunus, the founder of Schipani is a professor of business law. Walsh is Grameen Bank in Bangladesh; and Delaware Chief Justice E. a professor of organizational behavior and Norman Veasey, were paired as guest speakers week after week. corporate strategy. Professors Michael Bradley of All successfully ignited debate among themselves and the more Duke University and Anant Sundaram of the than 100 students and 25 faculty from the University's Business American Graduate School of International and Law Schools who were in regular attendance. Management collaborated on the project.

Dividend / 19 "Global competition might characterize governance systems, as well as product markets. If so, it is not clear that ours is winning." Ronald Gilson Professor of Law, Stanford and Columbia Universities

entral to our debate is the change born of • the Information Age. Land, labor and capital used to be the key factors of production in a "As the logic for production shifted over business world shaped by the Industrial time from standardization to . Revolution. Now, the creative deployment of customization and now to innovation, J knowledge lies at the heart of competitive the firm's key resource moved from advantage. The institutional context of capital to information to knowledge." business has changed. Raymond Miles This change has significantly altered most aspects of the Professor of Management and Dean Emeritus, business enterprise. For example, consider the very nature of work. Organizations created by an almost machine-like logic, University of California-. specifying functional responsibilities and boundaries that were coordinated and controlled by a managerial elite, have given "The emergence of global capital way to network organizations that are integrated across vertical, horizontal and even company boundaries by what markets is a double-edged sword. We would have appalled their predecessors—interpersonal ties now have access to these markets but based on value-added competence rather than hierarchical because we influence them, they are authority. limited vehicles for diversification." It is a given that product market competition is global. Michael Bradley Today, U.S. multinational corporations account for more than Professor of Finance and Law, 50 percent of all U.S. corporate assets. Capital markets have Duke University changed as well. Witness the rise of international capital markets and the proliferation of new financial products such "It's important for corporations to as exchange-traded derivatives. Perhaps even more important is the shift in the ownership of U.S. firms from predominantly address the actual expectations of its individual to now predominantly institutional ownership. shareholders with respect to its hedging Two trends in corporate law have further complicated the behavior. If it doesn't, you can some­ institutional context for business activity. There has been a times have the strange circumstance of significant increase in the regulatory accountability of the firm an increase in shareholder wealth and, to its stakeholders, most particularly its employees, customers at the same time, a decrease in share­ and the natural environment. Conversely, courts and legisla­ holder welfare." Henry Hu tures have given managers more discretion than ever before to Professor of Law, University of Texas help them address these concerns. This simultaneous tighten­ ing and loosening of control has created a very unusual policy If you want to compete in the capital situation. markets, then you 'd better be great in Each change carries challenges for those concerned with the customer, employee and supplier firm life. For example, if an individual's greatest professional markets." C.K. Prahalad asset is his or her knowledge base, then what is the firm's role Harvey C. Fruehauf Professor in management development? Consider the multinational firm of Business Administration, that transcends a variety of political and economic systems. University of Michigan Business School Who controls the corporation that operates in either a muddle

"Allocating property rights is one of the "There are 24,000 directors in the major challenges in transitional Czech Republic. Who are these economies." Jan Svejnar people? They are former civil Everett E. Berg Professor of servants. The same people who did Business Administration and the central planning are now calling Director, William Davidson Institute, the shots in the reform period." University of Michigan Business School Pedro Pick Chairman, Czech Post; Chairman, Tonak; Independent Director and Consultant ALL 1997 "Russia is an ambiguous place. With everyone in Armani suits — military officers, top businessmen and mayors — it is tough to tell who is a criminal and tuho is not." Stephen Handelman Foreign Correspondent and Former Moscow Bureau Chief, The Toronto Star of overlapping regulations or a void at the intersection of sovereign boundaries? These many changes ultimately call into question our fundamental understanding of just what a firm is. How do "Be careful about economic reporting alliances and long-term contracts affect our understanding of in the Russian press. Read it with a firm's boundaries? To whom is a firm responsible? If a incredible care. The banking industry stakeholder is anyone who is affected by a firm's activities, is buying up the media." then almost everyone in the world can claim to be a stakeholder Louise Shelley of a multinational firm such as Cargill Corp. or AlliedSignal, Professor of Justice, Law and Society, Inc. How is a firm to be held accountable for its actions in this American University new world? These important and vexing problems became the focal point for our Sloan-sponsored seminar series. The quotations accompanying the photographs of our guest speakers provide a "Only governments, law enforcement window on our many discussions. From them, three paradoxes agencies and criminals recognize emerged: national sovereignty. Criminals hide • First, if knowledge-based human capital is central to competi­ behind sovereignty." Jim Moody tive advantage, then why have we shaken a generation of Independent Consultant; Former Assistant managers with our clumsy corporate restructurings of the past Deputy Director for Organized Crime, 15 years? These restructurings have unnerved corporate Federal Bureau of Investigation America. It is not clear that our management community is well-positioned to exploit its knowledge-based assets.

"Privately held firms operate largely outside the discipline of the marketplace. "Two broad schools of thought, concerned Without a market, all bets are off." Robert Thompson primarily ivith the purpose and Professor ofLaiv, Washington University accountability of the firm, rally around freedom and liberty on the one hand, and justice and accountability on the other." "Private firms are run in the interest of inherent family values, not just shareholder value." Ernest Micek CEO, Cargill Corp. • Second, global capital markets provide a terrific opportu­ nity to hedge risk. But the more we penetrate these markets, the more they move in unison. Ultimately, we lose the independence that made them so attractive in the first place.

"Small companies can sometimes "We find that it is an uphill battle "Institutional owners fly in under the radar and avoid to make a profit in transitional have more than mere the attention that large companies economies. We have yet to make a power... they have a attract in transitional economies. profit in China. You have to focus responsibility." Thepoliticos will find a way to on long-term market opportunities Kenneth West get their hands on a big because the short term is so Senior Consultant/Corporate investment." Bruce Thelen Governance, TIAA-CREF William Marohn Attorney, Dickinson, Wright, Vice Chairman, Wiirlpool Corporation Moon, VanDusen & Freeman "Investors, directors and managers are working more collaboratively than ever before." Michael Useem Professor of Management, University of Pennsylvania

ast, the increased managerial discretion that various courts and legislatures created to address the demands for "It is unethical for me to opine an increased stakeholder accountability also answer, but let me ash you a question. enable managers to serve their own or any Do directors have an obligation to get other narrowly defined set of interests down in the weeds to find out what is without fear of retribution. This intended "remedy" actually may exacerbate the going on ?" E. Norman Veasey problems of stakeholder abuse. Chief Justice, Delaware Supreme Court In our final analysis, we turned to what so many in America take for granted, the Pledge of Allegiance. That simple 31-word treatise ends with the phrase, "with liberty and justice for all." It is impossible to consider all these "The Graham v. Allis-Chalmers issues without examining the very essence of how liberty and decision (absolving directors of the duty justice commingle in American business life. to probe deeply into the conduct of their Two broad schools of thought, concerned primarily with firm) is one of the worst decisions ever the purposes and accountability of the firm, rally around rendered by the court. It is an embarrass­ freedom and liberty on the one hand, and justice and ment. " Andrew Moore accountability on the other. The "liberty school" views the firm as a nexus of contracts. It celebrates freedom and Managing Director, Wasserstein, Perrella and competition as social norms, believes that prices govern Co.; Former Justice, Delaware Supreme Court exchanges, and worries about slavery and oppression should the opposing camp have its way. "Some argue that boards should meet The 'justice school" is different in all respects. It views the monthly for two days at a time. The firm as a social, political, historical and economic entity, celebrates responsibility and cooperation as social norms, result of that is likely to be uninformed believes that trust governs exchanges and worries about micromanagement by the board and, exploitation and alienation if the liberty school has its way. worse, the failure to deal with Larry Bossidy, chairman and chief executive officer for governance." Gilbert Whitaker AlliedSignal Inc., concluded our seminar series by observing, Independent Director; Professor of Business "If you are looking for simple answers to these questions, you Economics, Dean Emeritus, Former Provost, will never find them." He is surely right. We did, however, University of Michigan draw two broad conclusions. The purpose of the firm in a free market society is clear: "The qualities most lacking in directors to increase shareholder wealth. In 1970, Milton Friedman are courage and the will to act." wrote the article, "The Social Responsibility of Business is to William Bowen Increase Profits." In it, he discussed the role of the corporate Independent Director; President, manager (using language that belies just how long ago he Andrew W. Mellon Foundation; wrote the article.) He argued that ". . . in his capacity as a Former President, Princeton University corporate executive, the manager is the agent of the people who own the corporation. . . and his primary responsibility is to them." Though controversial, we agree with this funda­ mental tenet of the liberty school. Next, we must consider the issue of accountability—of "A danger arises when managers social justice. In terms of the corporation, this fundamental freelance on their own and directors hope for our society is not so neatly rendered. The notion of corporate accountability speaks directly to the needs and dabble in management." expectations of the firm's stakeholders. Although the Norman Augustine Chairman and CEO, purpose of the firm is not to maximize each stakeholder's Lockheed Martin Corp. well-being, it is surely responsible for fulfilling its obligation to each constituent group, whomever it may be, and to

22/SUMMER-FALL 1997 "Managers have a moral obligation to consider the interests of all their firm's stakeholders." Thomas Dunfee Professor of Business Ethics, University of Pennsylvania establish those obligations fairly and without coercion. That said, questions of accountability and responsibility—issues that have been with us since the birth of the corporate form—beg for further reflection and debate. "I would not want to be on a board that ivas required to balance the interests of Thanks to the Alfred P. Sloan Foundation, the University all the firm's constituencies. How tuould of Michigan's Business and Law School students and faculty, you do it?" A.A. Sommer together with practitioners and theorists from the interna­ Attorney, Morgan, Lewis & Brockius; tional business community, were able to probe these critical Former Commissioner, Securities and confounding questions. For better or worse, answers to and Exchange Commission these questions will shape the economic well-being of not only all Americans but also every citizen of the world.

"The shareholder versus stakeholder debate is not something that paralyzes a board. There can be an accommodation most of the time." Marina vN. Whitman A Salute to the Alfred P. Independent Director; Professor of Business Sloan Foundation and Public Policy, University of Michigan Business School; Former Chief Economist, General Motors Corp. he Alfred P. Sloan Foundation is a nonprofit institution founded in 1934 by its name­ "We have persuaded ourselves that the T fuel of capitalism is greed. That's not sake, the former chairman and chief executive officer of General Motors right. You can build a world-class Corp. During 1996, the foundation company on social objectives." authorized grants totaling $53 million, Muhammad Yunus including the grant to the University Founder, Grameen Bank, Bangladesh of Michigan Business School for a four-month seminar on corporate governance. This seminar series supports a major program of study at the foun­ "Think about what globalization, dation. Called The Role of the Corpora­ shareholder wealth maximization and tion, it examines stakeholder theories, stakeholder responsibility means to you. human capital and wealth creation, Does your life reflect your view ?" and corporate governance. The Noel Tichy program's introduction reads: Professor of Organizational Behavior "Recognizing the influence that and Human Resource Management; corporations have in determining the Director, Global Leadership Program, University of Michigan Business School standard of living and quality of life for most people in the United States, the Sloan Foundation has sought to "Most of the people who do the most for stimulate examination of the corpora­ society have the least time to do it." tion as the central and characteristic Larry Bossidy institution of American society." Chairman and CEO, AlliedSignal, Inc. Business School Selected to Create New Certification Program for Treasurers

hen the Treasury Management Association decided it wanted to develop a new certification program for senior treasury officers, it invited the nation's leading business schools to submit competitive proposals for the program. This spring, TMA announced that the University of Michigan Business School won the competition. "Busi­ ness Week says Michigan has the Sealing the deal: (from back, left) Anjan Thakor, professor of finance, Ron Bendersky, associate director for Executive Education, Jackie Dout, CFO for Champion Interna­ tional and TMA board member, and George J. Siedel, associate dean of Executive Edu­ cation pose with Dean B. Joseph White (front, left) and Don Manger, president, TMA, "Anyone working in treasury following the announcement that the Business School will partner with TMA to create who earns this credential will and provide a new certification program for treasurers. have a tremendous advantage" and, up to now, the only certification will have a tremendous advantage," - Anjan Thakor available to treasurers, CTE curricu­ says Anjan Thakor, the Edward J. Frey lum is an education-based creden­ Professor of Banking and Finance. tial. Participants must have a "There is no open enrollment pro­ highest customer satisfaction rating bachelor's degree and seven years of gram in the country that specifically of all business schools," says Don experience or a master's degree in addresses this group of topics. Manger, president of the 10,000- business, finance or accounting and "The program is important for the member association. "It has front- six years of experience. Business School too," Thakor adds, end name recognition, it runs its Beginning in October, the "because it allows us to offer such a Executive Education programs like a Business School will offer the first of broad base of modules in one concen­ business and 90 percent of this 10 graduate-level "institutes" or areas trated area. The program spans 70 program will be taught by Michigan of study. They are Corporate Finan­ percent of what we do in Executive faculty members. All this is very cial Management, Employee Pension Education in finance. TMA members important to the association." and Benefits Management, Financial who earn the new credential will be TMA supports its members, all of Risk Management, Global/Interna­ the best trained in the field because whom are treasury management tional Management, Technology no one individual could have such professionals, with a variety of Resources Management, Working broad experience without it." services including continuing Capital Management, Credit Man­ Creation of the new credential and education, certification programs, agement, Financial Reporting and its required program of study was industry research and the setting of Accounting Management, Relation­ driven by members of the association standards for the field. Partnership ships Management and Insurance in an attempt to stay ahead of the with TMA means the Business Risk Management. The institutes will expansion of functions for treasury School will assist not only in creating be held at the School's Executive officers charged with minimizing risk a new industry standard, but also Education facilities and will run for in a global marketplace. Manger delivering the ongoing training three-and-a-half to four days. expects the course content of the required to achieve certification. Within a seven-year period, institutes and the papers written by The new credential is called participants must successfully the credential candidates to form a Certified Treasury Executive (CTE). complete six units and write a database of accepted practices for Unlike the test-based Certified Cash research paper. "Anyone working in members. • Manager credential, which is the first treasury who earns this credential

24 /SUMMER-FALL 1997 The BBA Program: Unbeatable by Design

upenor such as marketing, op­ faculty, erations management, exceptional information systems and students and corporate strategy. And, of course, there is the smorgasbord of elec­ sa rigorous tive s. curriculum All of this comes af­ make the University of ter two years of liberal Michigan Business arts education. As a re­ School's BBA program sult, incoming business top in the nation. students are more well- "Unlike other busi­ rounded and more com­ ness schools, we don't mitted than their coun­ have separate programs terparts at institutions and separate faculty for that start the business our BBA and MBA stu­ curriculum in the fresh­ dents," says Senior Asso­ man year, Spotts says. ciate Dean Edward A. In their capstone Corporate Strategy course, BBA students (left to right) "Given that the average Snyder. "We have one Lauren Liang, Traci Karg, Cindy Cahill, Brad Nunemaker and Winnie Ng student changes his or world-class faculty mak­ present a team report on the cellular phone industry. her major up to five ing and teaching our times before graduation, curriculum. This adds grade point average. Applicants will our approach gives them the oppor­ considerable value to try to explain away a low grade by tunity to explore and choose." the undergraduate course of study. telling me, 'I didn't care about my Only about 300 students are ac­ We draw our students from a very psych course, but I got a B in ac­ cepted into the program each year, select group—primarily UM's own counting.' Well, we care about that and each class is divided into sec­ high-quality population and stellar psych course. tions just like the MBA program. candidates from across the coun­ "We also care about proven lead­ This affords the new BBAs the op­ try—and our BBA program is part ership activities. Every student who is portunity to form relationships with of one of the world's most highly admitted to the University was active their section-mates—ties that often regarded business schools. It is truly in high school. What we want to see become the heart of their profes­ an unbeatable formula." sional networks after graduation. Students apply to the BBA pro­ And what about after graduation? gram during their sophomore year. That horizon couldn't be brighter, Entrance requirements are rigorous " J interviewed with five Spotts says. The small size of each yet flexible. For example, prospec­ class is complemented by the large tive students must take 14 to 16 cred­ firms and had four offers.... number of corporate recruiters seek­ its per semester during their first two ing to hire Michigan BBA students. years that "prove to be a challenge," What more can anyone ask?" During the 1997 recruiting season, says Bethany L. Spotts, administrator sponsored by the School's Office of of the BBA program. They must - Andrew Taylor, BBA '96 Career Development, representatives show strong performance in all their from more than 180 different com­ courses and, because the School's panies came to interview BBA stu­ mission is to develop leaders who will is a clear continuation of that com­ dents. Off-campus recruiting also in­ achieve high performance in the glo­ mitment." creased significantly. bal world of business, all applicants Financial accounting, business "All five of my closest friends got must demonstrate leadership in ex­ economics, statistics and organiza­ their number-one choice for a job," tracurricular activities after high tional behavior form the core of the says Andrew Taylor, BBA'96. "I inter­ school. undergraduate business degree. viewed with five firms and had four "We spend a great deal of time re­ More specialized courses follow, offers What more can anyone ask?" viewing each application," she adds. "Decisions are not based solely on

Dividend / 25 Harvey Kapnick Shares His Vision, Resources

he same future- nificantly to their original gift. Their process. Professor Miller, who pro­ oriented vision that scholarship fund now will support up vided me with career guidance, inspired Harvey to 15 BBA and/or masters of ac­ taught that auditing was the verifica­ Kapnick's leadership counting students. tion of facts, not merely a set of of Arthur Andersen A second portion of their dona­ rules. Together, their teachings be­ and Co. has shaped tion is a major gift to the Arthur came my philosophy. I want our gifts his charitable donations to the Andersen Fund for the Paton Ac­ to the Business School to perpetuate University of Michigan Business counting Center, which was estab- this kind of creative thinking." School. The third component of Kapnick, MBA '48, and his the Kapnick gift creates the wife, Mary, have given $1 mil­ University of Michigan Busi­ lion to advance the study and ness School Paton Accounting practice of accounting through Center Harvey Kapnick Work­ a targeted mix of endowments shop Series. This endowment for student scholarships, the supports ongoing multidisci- Paton Accounting Center and plinary workshops for account­ faculty workshops. "I have ing faculty. Every five years been very successful," Kapnick beginning in the year 2000, a says. "I believe those who have workshop will be devoted to been successful should use a a critique of the effectiveness part of that financial success of standards setting in the for funding programs for fu­ accounting profession. ture generations." "Workshops are the center­ Following studies at the piece of the intellectual inter­ Business School, a 23-year-old change between accounting Kapnick launched his ac­ faculty and students at the counting career at Arthur Business School and around Andersen. Eight years later he the country," Imhoff says. made partner. In 1970, he was "These resources allow us to named chairman and chief ex­ bring the most interesting ecutive officer. During his de­ 1L and creative scholars from cade at the helm, Kapnick led 1° around the world to the the Big Eight firm to world­ § school for critical analysis of wide dominance in the field of g their work in process. public accounting and acceler­ J "The seminars, which now ated the growth of the consult- Harvey and Mary Kapnick will be sponsored by the ing practice. Kapnick Workshop Series and "Harvey Kapnick has always been lished to support the recruitment and are appropriately named in Harvey ahead of his time," says Gene Imhoff, retention of outstanding faculty and Kapnick's honor, are held about 25 professor and chairman of the De­ doctoral students, and fund items times a year and help to make this partment of Accounting. "At Arthur such as specialized software and re­ place great," Imhoff continues. "Be­ Andersen he had tremendous vision search databases. The Kapnick gift cause of this ongoing interchange, and a clear understanding of where serves as the lead gift for a campaign we are better able to keep abreast of, the accounting profession needed to to raise $2.5 million for the Paton and participate in, cutting-edge re­ go. Much of what he espoused re­ Accounting Center. search." garding the organizational structure "I will always be grateful to two out­ The Kapnicks, who have three of major CPA firms has become the standing teachers who became my children and eight grandchildren, norm in accounting today." friends—Bill Paton and Herbert enjoy full retirement in Florida. "In In 1990, the couple established Miller," Kapnick says. "Professor making these gifts, Mary and I gain the Kapnick Scholarship Fund. Each Paton taught that accounting is not the personal satisfaction that we are year, it has supported 10 under­ just about numbers. He said the num­ contributing to the continued educa­ graduate business students who are bers call for interpretation and facili­ tion of future generations and, actu­ residents of the State of Michigan. tate decision-making. Paton always en­ ally, the opportunity to have a fine This year, the Kapnicks added sig­ couraged visionary approaches to this education," Kapnick says.

26 /SUMMER-FALL 1997 Alumni Businessman Sam Zell Defines 'The Entrepreneur' Who better to talk about the entrepre­ Zell spoke about risk-taking, salesman­ neurial mindset than one of the nation's ship, the importance of vision and the Activities preeminent entrepreneurs, Sam Zell. "villain of every entrepreneur"—conven­ Zell, who earned his bachelor and law tional wisdom. degrees from the University of Michigan Successful entrepreneurs are blessed in the 1960s, currently ranks 96th on with extraordinary energy, he said. They Forbes' list of also have drive and focus and know how wealthiest to lead others. "We used to think power Americans. was the ultimate objective," he said, "but Zell was the the real definition of power is never guest of honor having to use it. That's leadership!" at the May gathering of the Business School's Club News Alumni Club of Chicago. The event, "An • CHICAGO Evening with Sam The University of Michigan Business Zell," drew more School Club of Chicago hosted "An than 200 people. Evening with Sam Zell" at the Chicago What does it Athletic Club in May. Two hundred take to be an members and guests were on hand for entrepreneur? the evening including many soon-to-be Sam Zell Several qualities alums from the MBA Class of 1998 who are essential, according to Zell. "It takes were working in Chicago. Christopher self confidence," he asserted, "that Sultz, BBA '87/MBA '90, and Cynthia unique ability to look in the mirror and Johnson Sultz, MBA '92, also were in say, I can do that!" It also requires the attendance. The couple met through ability to speculate on opportunity. An the club a few years ago and now are entrepreneur asks questions like: How do married. you make it happen? I wonder if they Club president Mike McKewin, MBA thought about this . . . ? How can I make '93, welcomed everyone. Dean B.Joseph it better? "This kind of White was in attendance along with Ann intellectual gymnastics is an LaCivita, the integral part of how and what Business School's drives a successful entrepre­ new director for neur," he said. Alumni Relations, "The word failure is not in and Barbara an entrepreneur's vocabu­ Wittbrodt, the new lary," Zell added. "There are director of the undertakings that don't work School's Annual out, but there are no failures." Fund. White Ambition—not to be addressed the confused with greed—is group on the another critical characteristic subject of risk- of an entrepreneur. Even taking—a topic more important, Zell said, is that set the tone for innate curiosity. "If you don't the evening's constantly ask why, or more speaker, Sam Zell. important, why not, you ain't (See related story gonna make it!" Christopher and Cynthia Sultz. above.)

Dividend / 27 Other club activities included Alumni participating in an American Cancer Society Walkathon and hosting a reception for University of Michigan President Lee Bollinger during his visit Activities to the Windy City in June. For more information, contact McKewin at (312) 222-6833.

• NORTHERN CALIFORNIA The Club of Northern California hosted Craig Branigan, MBA '74, managing director of Roger Shubert, BBA '89 (center right), and Landor Associ­ Mike McKewin, MBA '93 (far right), visit with ates, at its March Elaine Virant, Roger's wife (center left), and gathering. Dawn Akey, McKewin's guest, at the Club of Chicago's May event. Mike McKewin is the Branigan, who president of this city club. coined the phrase "power brand building," the event, which was held at the talked about Banker's Club in San Francisco. building brand In June, the club co-hosted with the equity. "A brand Golden Gate Chapter of the University is a promise," he of Michigan Alumni Club a baseball told the audi- tailgate party at Candlestick Park. Business school graduates, their guests and current students ence. Members, guests and Business School working in the Chicago area for the summer turned out for Approxi­ interns working in Northern California the Club of Chicago's May event. Pictured here with Dean B. mately 40 enjoyed food, fun and the game be­ Joseph White (center left) are members of the MBA Class of tween the San Francisco Giants and Los 1998 (left to right) Allison Botero, Erin Markey, Mitchell members and Goodman, Ryan Nordberg and Raymond Tehenbaum. guests attended Angeles Dodgers. In August the club will host Extrava­ ganza Picnic in the Park in Palo Alto to mark the end of summer, welcome new Michigan graduates to the area and provide a send-off for students returning to Ann Arbor. For more information, The Classes of 1972, 1987, 1992 contact Eva Chang, MBA '93, at and 1996 are invited to return to (415) 296-5818. campus for the University of Michi­ gan Business School's Annual Re­ union Weekend Oct. 31 to Nov. 1. "We have two full days of activities • ALL CLUBS planned," says Ann LaCivita, director The Office of Alumni Relations will of alumni relations. "Expect fun, host its Third Annual Leadership friends, football and excellent Conference for city club and Reunion executive skills seminars." 1998 leaders and Global Blue represen­ To register for Reunion '97, tatives on Nov. 2 at the Business School. contact the Office of Development For more information, contact Ann and Alumni Relations at LaCivita, director of alumni relations, at (313) 763-5775 or by e-mail at (517) 763-5775. [email protected].

28 /SUMMER-FALL 1997 RTUNITIES We want you! We have alumni activities for everyone. Please call Alumni Relations to get involved. Through your participation, you gain by networking with fellow Michigan grads while giving back to your alma mater in a personal way. It's also fun!

Have your company sponsor a Share a Class Note in Dividend Office of Alumni Relations Contacts reception for prospective students and magazine and Dividend Online. Let your Phone: (313) 763-5775 alumni in your city. classmates know what you are doing Fax: (313) 763-9170 professionally, personally or in your Participate in the Michigan community. Email your note to Ann LaCivita, Director, Business Women's Mentoring [email protected] or fax it to Alumni [email protected] Program for Business students. Relations at 313-763-9170. Mary Perrydore, Assistant Director, [email protected] Host an Alumnae Tea in your Julie Antis, Office Assistant, home for newly admitted female MBA [email protected] students in your city.

Volunteer to plan your class reunion. Planning begins more than a year prior to Reunion. Business School Reunions are held for classes 1, 5, 10 and 25 years after graduation. Emeritus Reunions are held each year for all alumni who have graduated 50 or more years ago. Contact your Global Blue Leader or the Office of Alumni Relations.

Update your business and home Become a Supporter of the address. Make sure other members of Annual Fund. Help the Business the Business School community will be School compete for the best students able to stay in touch with you. Send and the best faculty. Alumni Relations your updated contact Contact Office of Alumni information (find us at the Business Relations at 313-763-5775 or alumni@ School web site) or fax or phone us with your update. Contact Office of Career umich.edu regarding the following opportunities: Development at 313-764-1372 or Participate in Global Blue's [email protected] regarding the following "A Day in the Life" program. opportunities: Host a first-year MBA for a day at your company. Hire an MBA or BBA student or alum. You can interview current Take part in Global Blue's students on campus or post positions for "Alumni-Student Luncheon students and alumni on the M-Track Program." Join a small group of online network. students for an informal lunch in the Student Lounge (Alumni Relations treats Attend the annual Recruiting the alum) to discuss issues related to the Forums for students, alumni and MBA experience or careers. To schedule employers. The next Forums will be held a luncheon during your next trip to Ann in New York on November 6 and 7, 1997, Arbor contact Global Blue at globalblue and in San Francisco on January 22 and ©umich.edu or call Alumni Relations. 23, 1998. Recruiting Forums include a Thursday evening reception for alumni, Get involved in your alumni city students and employers and a day of club. Visit the Business School web site interviews on Friday for students and at http://www.bus.umich.edu to identify participating companies. a contact in your city. Dividend / 29 S DIRECT. Did you know that everyone's connected electronically:

Log on to the University of Michigan Business School web site and find the Alumni Database and information on CAREER SERVICES, CITY CLUBS, REUNIONS, and ALUMNI CALENDAR OF EVENTS

http://www.bus.umich.edu

DOMESTIC CLUB ITY CONTACTS M-Track and the Office of Alumni Relations Contacts Chicago - Daniel Roart IBA '94, (312) 507-4285, Phone: (313) 763-5775 Business School Web Site Fax: (313) 763-9170 daniel.m.roarty@awo.< Cleveland - Deanna Bre M-Track provides a "password pro­ Ann LaCivita, Director, [email protected] tected" network for alumni and other [email protected] Dallas/Fort Worth -Thomas^foolan, MBA '94, members of the Business School commu­ Mary Perrydore, Assistant Director, (817) 931-3714, Thomas_Dd([email protected] nity at http://www.bus.umich.edu/ [email protected] Houston -Geoff Allen, MBA '\ (713) 853-3182, mtrack. To access M-Track, use your Julie Antis, Office Assistant, [email protected] Social Security Number for both your ID [email protected] Los Angeles - Paul Wyckoff, BBA '86, and your password, unless you already (310) 786-8648, [email protected] changed your password as an alum or as "'Miami -Jay Carrillo, MBA '94, (305) 441-6196 a student. International alumni should Contact the Career Center New York-Barry Asato, MBA '92, (212) 503-7047 use the 10-digit student ID number that in the Office of Career Northern California -Eva Chang, MBA '93, had been assigned. If you have forgotten (415) 296-5818, [email protected] your ID or password, contact Alumni Development at 313-764-1373 or "Seattle - Sang Kim, MBA '96, (206) 655-3498, Relations at [email protected]. [email protected] for more information on these [email protected] Southeast Michigan -Ed Karls, MBA '94, (313) 930-9090 Lifetime Email Address for All *South Florida/Fort Lauderdale -Jeff Kleino, MBA Alumni. Your classmates and other Alumni Career Packet contains a list '93, (954) 851-8398, [email protected] members of the Business School commu­ Washington D.C. -Mike Weber, MBA '91, (202) of search firm contacts, Internet career nity will always be able to find you if you 874-0877, [email protected] sites and guides for resumes and cover check your M-Track messages regularly letters. or forward them to your current email INTERNATIONAL CLUB & CITY CONTACTS address. Beijing -Fan Zhang, MBA '93, 86-10-65051353, Job Postings. Career opportunities [email protected] for both new and experienced alumni Alumni Database may be searched by Germany - Michael Wolff, MBA '91, 49-69-910- can be found online via http://www. class, geography and industry. 36643, [email protected] bus.umich.edu/mtrack. Job opportuni­ "Hong Kong- Stephen Lovass, MBA '97, 8-522- Online Discussions. Alumni, ties are updated daily and are listed for 30 days. 839-6600, [email protected] students, faculty and staff can create Italy -Max Marcon, MBA '96, 39-2-72406292, online discussions with other members of [email protected] the Business School community. Kresge Business Library's Career Resources on the Web. Japan -Mr. Takeo Suzuki, MBA '76, 81-54-202- 0030, Fax: 81-54-202-2223 Available at http://www.lib.bus.umich/ Employer Contacts and Job Norway - Sverre Lorentzen, MBA '79, 47-22-83- edu. Career information includes links to Postings. Alumni can access all 600 company Web Sites, U.S. Job Sites, Inter­ 2622, [email protected] Business School employer contact national Job Sites, a Relocation Guide Shanghai - Byron Askin, MBA '91, 86-21-6350- information and career positions posted and a link to the University's library. 8228 ext. 233, [email protected] online. Singapore - Thomas W. Insley, MBA '92, 65-831- 1277, [email protected] Business School News and Club and City Contacts "Switzerland - Beat Geissler, MBA '95, 41-1-267-69- Events. Available year round. See 69, Fax: 41-1-267-69-67 Alumni Calendar of Events. Alumni City Clubs provide a link to Thailand - Sathist Sathirakul, MBA '90, 6636-373- the Business School community and 373 ext. 129, [email protected] sponsor business, career, and social "These contacts are currently looking for alumni to assist events for alumni. them in creating Alumni Clubs. Get in touch with them if 30 /SUMMER-FALL 1997 you would like to be involved. Charles S. Low, BBA '46/MBA '47 is chairman of SCORE Chapter 18 in De­ Retired Track Man Still Running Strong troit. SCORE was formed in 1964 as a Born and raised in Detroit, Chuck S. Low, BBA '46/MBA nonprofit association dedicated to entre­ preneur education and the formation, '47, joined the Navy at age 17 and started out in their col­ growth and success of small businesses lege training program. In 1944 he was transferred home to nationwide; it now has more than 12,000 Michigan, sent to the University of Michigan for supply- volunteer members. Jack recently assisted corps training, completed his undergraduate degree in in teaching a class on managerial commu­ business, commissioned an ensign and then was released nications at the UM College of Engineer­ from active duty as the war ended. He was all but 19. Low ing, and participated in a business plan made two decisions at this juncture: to earn his MBA and workshop at Lawrence Technological take to the track. Because of post-war rules, Low was al­ University in Southfield, Mich. In Febru­ lowed to compete on the Varsity Track Team in 1946 and ary he represented SCORE at a dinner 1947. "I probably hold the record for the most second- meeting of the American Society of places finishes in the Big Ten," he says. Travel Agents where he explained how After completing the MBA program, Low went to work for Ford Motor Company for the association helps and advises small- three months, then moved to Briggs Manufacturing for the next 14 months. A restructur­ business owners. In a recent interview, the ing in that industry brought him back to Ford in 1949, where he staved until his retire- Oakland Press identified Jack as one of ment in 1985. His 36-year tenure there included 15 years in the Ford Division, two years SCORE'S walking, talking encyclopedias at World Headquarters and 19 years at the Tractor Operations. "My entire career was in on the ins and outs of owning your own Ford's worldwide service parts business, finally retiring as North American Distribution business. Jack says he prefers to be known and Supply Manager for Tractor Parts Operations. The international aspect of my career as a "business doctor" who diagnoses allowed for extensive travel throughout Europe, Latin America and the Far East," he says. problems and prescribes solutions. Low has never forgotten his UM ties. A resident of Bloomfield Township since 1962, he was president and board member of the University's Club of Greater Detroit, presi­ dent of the "M" Club, a member of the President's Club, a member of the Victors Club Jerome B. Williams and has been a football season ticket holder for 53 years. "I'm proud that my university has such a high academic standing in so many different fields, and that it has a very active BBA '56 alumni group," he says. "One out of 800 Americans is a University7 of Michigan graduate, had two concurrent careers since graduat­ and you run into them all over the world." ing from Michigan—flying and computer Retirement hasn't slowed Low down one bit either. Aside from his huge involvement systems development and consulting. with UM alumni activities (he was back in June for the Business School's 1997 Emeritus "The flying is over, but I'm still providing Reunion), he served as a Bloomfield Township trustee for nine years and a member of election systems software support via the their planning commission for eight years. But most significant, perhaps, is his involve­ Internet for Michigan, Massachusetts and ment in the Scottish community. "Both my parents emigrated to the U.S. from Scotland Pennsylvania from my little town (Twain in the early 1900s, and since my retirement I have enjoyed membership in the St. Harte) near Yosemite," Jerome says. "I'm Andrew's Society of Detroit, a Scottish benevolent organization." In fact, Low has served also a volunteer math teacher for GED as President, Board Chairman, Treasurer, Highland Games Chairman and all-round ac­ students in the county." tive member of the organization. The quality of my Michigan education was superb," he says. The Business School ranks number one, and I received a wonderful career educa­ tion there." 3 R. Bruce M Few alumni are more devoted to their school than Chuck Low. Resplendent in for­ MBA'63 mal Highland Dress at a recent Scottish event, proudly wearing the tartan of Clan senior account executive with Georg MacLaren, Low cut a smart figure. But a second glance revealed his true allegiance ... Fischer Foundry Systems, received the E.J. the suave Scot was wearing maize and blue hose and flashes! Walsh Award from the Foundry Educa­ tional Foundation (FEF) last November in Chicago. The FEF was established in his wife Judy share interests in golf, pho­ First Martin Corp. in Ann Arbor, is a long­ 1947 to foster and improve college-level tography, theater, boating and enjoying time competitive sailor and past president technical education in the metal casting their nine grandchildren. of the United States Sailing Association. field. The foundation now works with 28 Before joining the board, Bill served on engineering schools nationwide as well as the USOC's budget committee for four William C. Martin with two-year schools that graduate tech­ 65 years. The USOC also oversees the Junior nologists. Bruce has been FEF president, MBA'65 Olympics, the Paralympics, the Senior Olympics, the World University Games a member of the executive committee was recently appointed to serve as the sail­ and the Pan Am Games and acts as the and a trustee. He also was an FEF scholar ing representative on the 50-member U.S. liaison to the International Olympic and received an undergraduate engineer­ United States Olympic Committee (USOC) Committee. ing degree from UM in 1957. Bruce and Board of Directors. Bill, president of the

Dividend / 31 Allen Shoup, BBA'65 coordinating international study and re­ search by university faculty and students, His Wine List Is a Winner and working with foreign students coming Allen Shoup, BBA '65 served as the honorary chair of to Alaska. John also earned his BA and MA WineFest '97, the distinguished wine auction that benefits in Chinese Language and Literature at the Ann Arbor Art Center. WineFest was held in April in UM and speaks French, German, Russian, nearby Ypsilanti. Allen is president and CEO of Stimson Lane Cantonese and Tibetan. His wife Lisa (BA Ltd., which owns and operates Chateau Ste. Michelle, Colum­ '73, AMLS '74) is a librarian at the UA- bia Crest and Snoqualmie wineries in Washington State. Fairbanks. This includes 3,500 acres of vineyards and 7,000 acres of farm land. Stimson Lane also owns and operates Whidbeys Liqueur and Port House, Yakima Brewing and Malting Com­ i"7 0 Gary J. Rasmussen pany, and Conn Creek and Villa Mt. Eden wineries in the '° MBA'78 Napa Valley. recently joined ProForma West, a regional Shoup has 20 years' experience in consumer goods mar­ mergers and acquisitions firm. "I consult keting, including seven years with Max Factor and a tenure as director of corporate with either business owners or potential communications for Boise Cascade. He began his career in the wine industry with E. 8c investors in privately held companies lo­ J. Gallo as a group product marketing manager. As president and CEO of Stimson cated in the western U.S.," he says. Gary Lane, he has taken the company to international prominence and established Washing­ sold his telecommunications company in ton State as a world-class grape growing region. He joined the firm in 1980 as director 1992 and then authored a book on how of marketing and was promoted to president in 1984. Over the past decade, the com­ businesses can best utilize this market pany has seen an average annual sales increase of 20 percent. (How to Buy Telephone Equipment in the "Getting traditional-minded wine lovers to embrace a new wine-making region is Secondary Market, New York: Flatiron Pub­ like asking them to change their religion," Shoup says. He first established the Colum­ lishing, 1994). Residing in Colorado since bia Valley growing region as an appellation in 1984. To further advance the region, he 1978, Gary and his wife live west of Denver founded the Washington Wine Institute; today he is a member of the Washington Wine in Evergreen. Commission, the California Wine Institute, the National Wine Coalition and the Cen­ tury Council, and was the founding chairman of the American Wine Alliance for Re­ search and Education. Earl S. Landesman Shoup's \ision for the industry is an outgrowth of his passionate belief that life 79 MBA'79 should be pleasurable. "Wine is an intrinsically pleasurable product. For more than 4,000 years, wine has provided universal pleasure. If we are going to have a wine culture is chairman of Strategic Financial Part­ in this country, it will come from wine's natural marriage to food." Shoup resides in ners, a financial and general management Seattle with his wife Kathleen and son Ryan (10). consulting firm committed to implement­ ing leading-edge financial and business process solutions. Earl has just written Corporate Financial Management: Strategies for Maximizing Shareholder Wealth (John Wiley Michael Duhl and also a "Job Planning & Review" manual. Don left Domino's Pizza after 15 & Sons, 1997). Prior to founding Strategic BBA '66 years as vice president to become a consult­ Financial Partners, he was a partner with has accepted the position of principal in ant, keynote speaker and workshop facilita­ Coopers 8c Lybrand, an associate partner the Tax Group with Deloitte & Touche tor. He is president of Don Vlcek & Associ­ with Andersen Consulting and a principal LLP in Chicago. Previously Mike was a ates Ltd. located in Plymouth, Mich. with A.T. Kearney. He also was on Chrysler partner with the law firm of Hopkins & Corp.'s Corporate Finance staff during its Sutter in Chicago, where he was employed Thomas Kurlak 1980s turnaround. since 1971. Mike has represented numer­ BBA '69, MBA '71 ous clients in disputes with the IRS, includ­ Cynthia Fadool Rose ing argument in the U.S. Supreme Court. is first vice president and senior analyst for MBA'79 He also served as outside counsel to the Merrill Lynch covering the semiconductor took an 11-year hiatus from the workplace Federal Home Loan Bank Board, Federal industry. Tom started with Merrill Lynch in to raise her two now-teenage children. Savings and Loan Insurance Corporation 1978 and has been a member of the All During that time she did part-time substi­ and Federal Deposit Insurance Corpora­ America Research Team since 1980. He is a tute teaching, tutoring of English as a tion. After graduating from Michigan, he member of the New York Society of Security second language, management consulting graduated magna cum laude from Harvard Analysts and of New York Electronics Ana­ and freelance writing and editing. Rose Law School in 1969, where he was an edi­ lyst Group. He and his wife have two grown was the co-author of Native North American tor of the law review. He resides in children, ages 25 and 30, and one grand­ Almanac, a two-volume reference book for Winnetka, 111., and serves as a village daughter, age 2. middle schoolers, published by Gale Re­ trustee. search. In May 1995, she began working >1 ij John Lehman at William Tyndale College, a small Chris­ tian liberal arts school in Farmington Don Vlcek ' ' MBA'77, Ph.D.'82 Hills, Mich., as director of the accelerated BBA '71 has been appointed director of interna­ degree program, acting chair of the pro­ has recently produced an audio cassette tional programs at the University of Alaska fessional studies division and assistant titled "Supervision," to follow his award- at Fairbanks, where he is a professor of in­ professor of business administration. In winning business book The Domino Effect formation systems and international busi­ November 1996 she was named associate ness. He now is in charge of promoting and

32 /SUMMER-FALL 1997 Albert J. "Al" Vegter, B Arch '66/MBA '67 bor and Industrial Relations and has just published, with Sharon Lobel, a book Still Building for the Future titled Managing Diversity: Human Resource As a young architecture student working summer jobs in both Strategies for Transforming the Workplace large and small offices, Al Vegter, B Arch '66/MBA '67, recalls (Blackwell, 1996). The couple enjoys rais­ noticing that few architects really knew much about the busi­ ing their four children, ages 3, 6, 8 and 11. ness side of their practices but most spent a lot of time and They reside in Okemos, Mich. effort trying to run them, often poorly. So he decided to cross Monroe Street from the old Architecture Building (now Lorch Hall) and take some accounting and business law. "It became QO Gretchen M. Hazen an interesting cross-cultural experience," Vegter says, "since MBA'82 the attitudes and focus of the two schools were so different. It With degrees and work experience in natu­ was sometimes a nice relief thinking in quite a different way to ral science, Gretchen earned her MBA with solve the problems we were given in class." the goal of selling her science and business This eventually led to his becoming one of the first UM skills to a conservation or environmental architecture graduates to get an MBA. "Neither school had ever heard of anyone doing organization. When that didn't quite work it before, and now they have a joint degree program. My senior thesis architecture out, she went into the software business project was planning an addition to the Business School, including residential space for where she put her MBA skills to good use Executive Education, which became a reality several years later," he says, "so everything I in various aspects of tech writing and was doing as a student was pretty well integrated." project management. "In spring 1995 I Vegter is still working in a "cross-cultural" way as president of Daniels and Zermack became unemployed, and it was the best Associates, an Ann Arbor-based firm of architects and interior designers who have spe­ thing that happened in years. After 1-1/2 cialized in the design of business buildings, particularly banking institutions, since 1950. years of leisurely job hunting I found my "A lot of what we do involves consulting with our clients about their facility needs. Not dream job as the operations manager of only does the business background help in running our practice, but we have the ability The Nature Conservancy's Alaska Field to really relate and comprehend their business organizations and objectives. Our consult­ Office. I'd never thought of moving to ing sometimes leads to their thinking about their organizations and how they will offer Alaska, but I'm here now and love working their services in a different way." for the Conservancy, my job and Alaska. Vegter, who has planned several dozen banking buildings during his 24 years with And I'm finally doing what I set out to do the firm, adds, "I didn't have any idea I would be applying what I learned in Dr. when I got my MBA," she says. Gretchen Brophy's Money and Banking course in quite this way." lives and works in Anchorage. Vegter and his wife, Dorothy Jean, recendy celebrated 30 years of marriage. They have three children: Christopher (an aero-engineering graduate of UM), Suzanne and Paul T. Hufziger Katrina. Vegter has served as chairman of the Alumni Board of the College of Architec­ ture and Urban Planning and as president of the Huron Valley chapter of the American BBA '82 Institute of Architects. has been appointed director of Taxes and Tax Counsel for Retailer Financial Ser­ vices, a division of General Electric and GE dean of admissions for adult and continu­ Many-To-Many, an alternative health publi­ Capital Services. Retailer Financial Services ing education, where she focuses on mar­ cation for serious health seekers interested is the world leader in providing credit ser­ keting, recruitment and admissions for the in the science of human health. Interested vices for retailers and consumers. Paul and accelerated degree program. readers may contact him at 1930 Wash­ his wife Evelyn (UM'82) reside in Fairfield tenaw Ave., Ann Arbor, MI 48104-3655 or County, Conn., with their three sons. e-mail to [email protected]. QQ Richard M. Gold MBA'80 Dennis Colling Gerard J. Tellis has been named vice MBA'81 Ph.D., '83 president-aftermarket is currently serving as vice president for authored an MBA textbook, titled Advertis­ for Cummins Engine human resources for Partners HealthCare ing and Promotion Strategy, that will be re­ Co., a major world­ System, the company organized to oversee leased by Addison Wesley in August 1997. wide producer of the affiliation of Massachusetts General Gerard is Neely Professor of Marketing at diesel engines. Rich­ Hospital and Brigham and Womens Hospi­ the University of Southern California's ard joined Cummins tal. Partners also includes the Northshore Marshall School. in 1980 in the finance Health System and more than 700 primary area. Before working care physicians. Before going to Boston, for Cummins, he was with the Observer Dennis served in a similar capacity at the 84 Terri Albert Newspapers in Detroit as a reporter and University of Pennsylvania Health System in BBA '84 editor. He and his wife, Alice, have three Philadelphia. He lives in Cambridge, Mass. children, Aaron, Rachel and Andrew. is now working for VIEWnet selling PC- based teleconferencing to colleges and Sandy & Ellen Ernst Kossek universities. "This technology is like what MBA '81 (both) 0 7 Robert W. Avery you use in the UM placement office to do screening interviews with grads who are 01 MBA'81 Sandy spends a lot of his time on the road as a network strategy consultant for IBM. interfacing with a company not coming to has assumed the editorship of the bi­ Ellen is a tenured associate professor at campus for this stage of interviews," Terri monthly periodical The Natural Health Michigan State University's School of La­ explains. Terri resides in Chicago.

Dividend / 33 responsible for resource planning, person­ Jack J. Quinlan, BBA '75 nel operations, scheduling/staffing, career Answers a Higher Calling development, compensation management and other related programs. Chris lives in When Jack Quinlan, BBA '75, graduated from the Business Wheaton, III, with his wife, Anette, and School, he accepted a position with the Word of God Chris­ sons, Alex, Eric and Kevin. tian Community in Ann Arbor. There he was involved in a variety of activities as the organization expanded its opera­ Alicia Weaver Robinette tions internationally. During his tenure there, he coordi­ nated the efforts of a missionary team for a year in Colombia BBA '85 and also visited sister communities in Central America. Later is manager of Robinette's Gift Barn in Quinlan was introduced to Tom Monaghan, founder of Grand Rapids, Mich. "I am managing half Domino's Pizza, and with him helped develop a mission to the family business, which specializes in the poor in the mountains of Honduras. "The Prayer of St. fine collectibles, and am really enjoying it," Francis has always been a favorite of mine. It says, It is in reports Alicia. She is married to Ed giving that we receive.' I have found this truth recurring Robinette, and they have two sons, Jim (8) throughout my life," he says. and Allan (5). The other half of Eventually, Quinlan returned to UM to take a philosophy course, and subsequently Robinette's Inc. is Robinette's Apple matriculated to the Franciscan University of Steubenville, Ohio, where he did 18 Haus—fruit farm, cider mill, bakery and months of philosophy and theology studies in preparation for his graduate theology restaurant. studies. Quinlan entered Sacred Heart Major Seminary in fall 1993, and received his Mas­ David T. Simm ters of Divinity degree on April 26, 1997. "I always thought of becoming a Catholic MBA '85 priest and was pleasantly surprised when I entered the seminary and discovered there were others there who had come after having successful professional careers," he says. has been appointed Sacred Heart Major Seminar)- currently has a cardiologist, several attorneys and engi­ to the Posicor mar­ neers and an art director among its priesthood candidates. keting team for Quinlan was ordained a Catholic priest on May 17,1997, at Blessed Sacrament Ca­ Roche Laboratories, thedral in Detroit. On July 1,1997, the Rev. Jack J. Quinlan became Associate Pastor at in Nutley, N.J., the St. John Neumann Parish in Canton, Mich. pharmaceutical mar­ "I believe if we sincerely seek to do what in our heart of hearts we know to be right keting and sales sub­ and best, we will be happy and find fulfillment. I am happy to be embarking on a career sidiary of Hoffmann- as an ordained priest who will hopefully be giving life, truth and hope to those I en­ LaRoche. Posicor is a counter along the way." new cardiovascular compound that repre­ sents a major advance in the treatment of hypertension and angina. David came to Roche from Boehringer Manheim Corp. in J. Peter Bardwick "I wanted to use my education in a com­ Gaithersburg, Md., where he was senior prod­ MBA '84 pletely new field to expand my horizons. uct manager in the therapeutics division. Learning is a lifelong process, and I never Previously he had worked at Lederle Labo­ formerly was the CFO of Beasley Broadcast want to stop learning." ratories and American Scientific Products. Group and is now the managing director of Star Media Capital in Dallas, Texas. Star Robert H. Sack Media Capital is a specialty investment BBA '84 J?/T Steven L. Goldberg banking firm working with the broadcast BBA/MAcc'86 and entertainment industries. is senior vice president for business opera­ tions of the Grand Rapids Griffins, the In­ has been named vice president, invest­ Tom Jacques ternational Hockey League's most success­ ments, of Stifel, Nicolaus & Co., which is BBA '84 ful franchise. Bob oversees all business op­ engaged in securities brokerage, invest­ erations, and the Griffins sold out 40 of ment banking and money management. writes that his second son, Jared Francis, their 43 games this past season in their Steve will provide financial counsel to the was born on May 5, 1995. After going to brand new, 11,000-seat arena. Since gradua­ firm's clients on a full range of investment night school since January 1991, Tom re­ tion, Bob has spent his entire career in pro­ opportunities. Based in St. Louis, Steve is a ceived his MBA on June 3,1996, graduating fessional sports management. board member of St. Louis Effort for AIDS, with honors from the University of Wiscon­ a member of the Jewish Federation Alloca­ sin in Oshkosh. He was inducted into Beta tion Committee, treasurer of the UM Gamma Sigma, a national business honors Q ^ Christopher P. Mammoser Alumni Club of St. Louis and co-chair of society, and achieved a 4.0 grade point MBA '85 the St. Louis Chapter of the Missouri Soci­ average. In October 1996, Tom accepted ety of CPAs' Personal Financial Planning was admitted as an associate partner in the new position of marketing strategist at Committee. Paper Converting Machine Company in Andersen Consulting, a global manage­ ment and technology consulting organiza­ Green Bay, Wis., after spending 12 years in John D. Lieberman the paper industry with machine manufac­ tion, last December. Chris joined Andersen BBA '86, MBA '93 turer Fabio Perini S.p.A. of Lucca, Italy. He Consulting in June 1985 and was promoted is now responsible for the global marketing to manager in 1989. He is director of hu­ started his professional career in 1986 in strategy for flexographic printing machin­ man resources for the Financial Services the Deloitte & Touche audit practice in the ery. "I needed a new challenge," Tom says. Industry practice in the Americas, and is U.S. and U.K. After receiving his MBA,

34/SUMMER-FALL 1997 John joined Citicorp and has held positions ports everything is going well in Baltimore, development stage company that has cre­ in consumer marketing and corporate fi­ and he can be reached (for tickets, of ated the first implantable atrial defibrilla­ nance. Currently assistant vice president, course) at Johns Hopkins University, Ath­ tor. He is business manager for cardiovascu­ he is involved in marketing traditional letic Center, 3400 N. Charles St., Balti­ lar surgery. He and his wife, Vicky, enjoy commercial and investment banking prod­ more, MD 21218. living in the Pacific Northwest and hope ucts to Fortune 500 chemical and pharma­ to climb Mt. Rainier this summer. Tom ceutical companies. Margaret Leverich Blum can be reached at [email protected] MBA '88 Control.com. Gordon Metz is director of product development-textiles MBA '86 Karl Siebert for Donghia Textiles & Furniture in New MBA '88 has left Chase Manhattan in New York to York City. Introduced to "the city" as a sum­ join CoreStates in Philadelphia as a direc­ mer intern at Merrill Lynch, she moved was recently reassigned at Air Products and tor. He will continue to do mergers and there in 1988 as an associate at Citicorp Chemicals, Inc., moving from power gen­ acquisitions, but will be working with a Real Estate. "Banking was interesting and I eration to the controller's office as a finan­ regional, instead of international, client traveled quite a bit, but I began tov get rest­ cial analyst. He reports it is interesting to base. Gordon will be a member of the Capi­ less," Margaret says. She changed careers in rebuild his MBA skills along with learning a tal Markets group and work to secure and 1991 and is now working in the home new business. Karl is still involved in music, execute deals for their middle market cli­ furnishings industry. "I work with printing taking guitar lessons with 30 "40-some- ent base. "There will be far less travel in and weaving mills all over the world devel­ thing" guys. He and his wife, Laurie, are this position, enabling me to spend more oping new products for the U.S. and for­ enjoying their three kids, Sally (6), Lauren time with my wife and two boys," he says. eign markets." In 1992, Margaret married (3) and Kyle (7 months). They are plan­ He formerly traveled extensively in Europe, Jonathan Blum, a news producer for ABC ning to move out of the city soon so their Asia, the Middle East and Latin America. Television, and they have just bought a kids can enjoy a yard. Karl can be reached home in Harrison, N.Y.. at [email protected]. William Nisser MBA '86 Steve Levine Q Q Thomas P. Harrison MBA '88 is working with Trygg Hansa in Stockholm, MBA '89 Sweden, as project manager for several has been in Jacksonville, Fla., since Septem­ projects as well as designer of the firm's ber 1993 working in marketing for has left Ford Motor Company after seven Internet website and Intranet site. His wife, Vistakon, Inc., a division of Johnson & years in sales and marketing and joined Katarina, works with clinical medicine tests Johnson that makes the ACUVUE dispos­ Carhartt, Inc. "Carhartt provides me with and studies related to osteoporosis. "She able contact lenses. He and his wife, Mary, the opportunity to be directly involved in also holds all the reins and drives the girls and their two daughters, Jenny (6) and the strategic management of a company," to their activities," William writes, "and Katelyn (3), live in Ponte Vedra, a small Tom says. makes sure the right child/husband is on beach community just south of Jacksonville. the right spot preferably at the right time." "It was a good move from Chicago!" Steve Wen-Hung Kao Their two children, Helena and Carolina, writes. He can be reached at slevine@visus. MBA '89 are taking skiing lessons. Helena also at­ jun.com. formerly marketing manager for Frito-Lay tends a riding camp, and Carolina dances Taiwan, has been promoted to marketing ballet. The family enjoys the midsummer Ray Kuramoto director for PepsiCo Food International in festivities in their area, traveling and a host MBA '88 China. He is responsible for developing and of other activities. And for one week in expanding the salty snack market in China. October, William can be found hunting recently returned to London after five years He moved his wife, Jan, and daughter, Lori, deer in the Scottish Highlands. in Tokyo and is working for Credit Suisse First Boston. to Shanghai in February.

Whit F. Stolz 0 *1 Laura Trosino Kunewa Jorge Ramos BBA/MAcc '89 0/ MBA'87 MBA '88 married Courtney Stout in October 1996. Laura Trosino married Allan Kunewa of recently repatriated from Mexico to the In January 1997, they moved to Auckland, Honolulu, Hawaii, in February 1997. Laura Steelcase corporate office in Grand Rapids, New Zealand, where Whit now works for and Allan live in Honolulu, where Laura is Mich. His assignment in Mexico was tough, the law firm of Russell McVeagh McKenzie president of U-Med, a health care manage­ he says, but he survived the financial crisis. Bartleet & Co. ment organization that manages a health The biggest and most persistent barrier was insurance company and a physician orga­ Hacienda (Mexico's IRS). Nonetheless, he reports the assignment was a good experi­ nization with 300 physician members. Qfj Michael J. Clark Laura writes that Hawaiian winters are bet­ ence for him and his family. His biggest MBA '90 ter than those in Ann Arbor, but says she regret is that his three daughters will prob­ sure misses game days in the fall. ably stop learning Spanish unless he and is director of marketing for IEM Industrial his wife speak it with them. Jorge can be Electric Manufacturing, the largest privately reached [email protected]. held manufacturer of electrical distribution QQ Andrew Bilello products in the country. He and his wife MBA '88 Tom Sanko Wendy welcomed their first son Matthew in MBA '88 1996. is now serving as assistant athletic director at Johns Hopkins University. Andrew re­ is currently working for InControl, Inc., a

Dividend / 35 Jfan; e Schindewolf, MBA '91 Paul A. Roberts Working Mother of the Year BBA/MAcc '90 Jane Schindewolf, MBA '91, was recently honored by Working was recently promoted to international Mother magazine as this year's "Working Mother of die Year" after tax manager at Coopers & Lybrand LLP being nominated by her husband, Eric Romano, MBA '91. in San Francisco. More importantly, he After the birth of their first child in 1991, Jane was grateful for and his wife Sarah are proud to announce her hospital's parenting program, but felt something was missing. the birth of their second child, Grace, in The hospital needed a seminar for parents trying to make the September 1996. Her big brother, An­ difficult transition back to work. To remedy this, she co-created drew, turned 3 in January. "With two chil­ and currendy leads return-to-work seminars for new parents for dren and my recent promotion, we are her employer, DuPont Company. Her seminar focuses on career keeping busy!" Paul writes, with grand planning and flexible work practices. "If you have flexibility, you understatement. can manage almost anything," Jane says. Along with two co-managers, Jane supervises a team of some QI Joseph B. Bergmann 85 sales and marketing professionals at DuPont, where she has worked since she completed her undergraduate degree in engi­ MBA'91 neering. (She earned her MBA through the Business School's reports that he is working for Siemens evening program.) The group is responsible for selling plastics, and now living in Munich, Germany. He fibers and other materials in the automotive industry. DuPont has been named one of provides business and sales consulting to Working Mother's "100 Best Companies for Working Mothers" every year since 1988. "Be­ Siemens' customers and distributors who cause of the help I get from DuPont, I have a deep commitment to the company," Jane are interested in either buying or selling says. complex telecommunication systems in But it is still not easy to combine an executive career witfi motherhood, so Jane also Europe, Africa or the Middle East. "It's a has created a network for mid- to senior-level professionals and managers at DuPont who perfect balance between technology and are confronting work/family issues. "There are not that many mothers of young children business,"Joe says. "When I entered in the upper echelons of the company," she explains. "Women like me are already strug­ Michigan, I never imagined having an gling to manage what's on our plate. We worry about accepting more responsibility and international career; but one semester in how we're going to do it." Europe changed my outlook. I strongly DuPont and other area businesses joined together to share resources and ideas on how urge everyone to explore and utilize to become more family friendly. Dubbed the Family Works of Troy, Mich., Jane is Michigan's once-in-a-lifetime opportuni­ DuPont's representative and was thrilled to be able to use DuPont's expertise to help ties and resources." other businesses. She and her husband, Eric, and their two children, Lindsay and Emily, reside in Mark Brugger Beverly Hills, Mich. "I love this whole experience because I love working with moms. They MBA'91 have so many questions, and I know I can help them because I've been there," she says. reports an interesting UM coincidence from last fall. He and a friend were vaca­ Daniel Frey tioning in Spain and had taken a two-day services sector, with 450 employees in nine trip to Tangiers to check out Africa. They BBA '90 states. It is aggressively growing, Stephen missed the pre-arranged shuttle to return has joined the financial reporting group in writes, with an average of 10 acquisitions to Spain, and took a cab. When they got corporate accounting at First of America per year. to the docks, standing right in front of Bank Corp., a $22 billion, multi-state bank them in line were Marty Sedwick (MBA holding company based in Kalamazoo, Christopher Park '91) and his wife Shelly. They filled each Mich. His new responsibilities include regu­ MBA '90 other in on life since grad school while latory reporting, yield analysis of the bank's was recently pro­ waiting for their separate boats. Marty is investment portfolio and other related du­ moted to senior man­ working in Europe, just outside France, ties. Dan also has taken up amateur body­ ager with the Michi­ for the Timken Company. Mark works for building and recently competed in the gan Practice of the Teleport Communications Group Kalamazoo Bodybuilding Championships. Deloitte & Touche near Princeton, N.J. He will be competing in the Western Michi­ Consulting Group. gan Natural Bodybuilding Championships Chris, who received Maria C. Klutey in Grand Rapids, Mich., on November 1, his bachelor of sci­ MBA '91 1997. ence in architecture in 1987 and his master of architecture in is now director of U.S. Planning & Analy­ Stephen P. Lavey 1990, joined Deloitte & Touche in 1994 sis for the Reader's Digest Association in MBA '90 and specializes in capital programs services, Pleasantville, N.Y. Maria started with health care, manufacturing and informa­ Amoco Strategic Planning in Chicago. has just left the Bank of America's Environ­ tion technology. He is also an associate She and her husband were both trans­ mental Services Lending Group in Chicago member of the American Institute of Archi­ ferred to Houston 18 months later. Two to become chief financial officer with Ameri­ tects. Chris resides in Birmingham, Mich., years later, wanting to move back to New can Disposal Services, Inc. in Burr Ridge, 111. with his wife, Kristen, and their three chil­ England, she was hired by Reader's Di­ American Disposal is a $100 million, pub­ dren. gest. "I was eight months pregnant when licly traded company in the environmental they hired me, which I interpreted as a

36 /SUMMER-FALL 1997 sign of a progressive company," Maria for the firm after graduating in 1989 from marathon this past year "in an attempt to writes. She was manager of European Fi­ Wabash College. Then he came to Michigan overcome the curse of the 30s." He also nance for 18 months before being pro­ for his MBA and returned to Deloitte 8c works with a group of inner-city children moted to her current position. She and her Touche. Terry, who makes his practice in I trying to involve them in athletic activities husband and two children reside in the health care industry, says, "I welcome and generally keep them out of gangs and Ridgefield, Conn. calls from any students wishing to learn trouble, a challenge he says he finds ex­ more about consulting. I practice in the tremely rewarding. Donald A. Nolan health care industry, working with physi­ MBA'91 cians and organizations that own and oper­ Arvind Malhotra ate physician practices. I probably have MBA '94 was recently promoted to vice president enough Hilton points to own a small hotel, and general manager of Valspar's Indus­ but the work is very challenging." Terry and recentlyjoined CBSI, a consulting firm in trial Wood and UV Coatings business in his wife Debbie reside in Livonia, Mich., and Farmington Hills, Mich., as director of busi­ Minneapolis. return to Ann Arbor several times a year for ness development. The company recently recruiting, ball games and an occasional deli went public and is listed on NASDAQ. Andrew "Randy" Winograd splurge at the Maize & Blue Deli. If you wish "The job is very challenging and on occa­ BBA'91,JD'94 to contact him for his consulting perspec­ sion draws upon the knowledge gained during my MBA years," said Arvind. His was recently named chief financial officer tive, he can be reached at (313) 396-3134 or by e- mail to: [email protected]. son, Sanchit, is now four years old. "One of and general counsel for HSI Productions my goals is to open an Alumni Club in In­ Inc., a television commercial and music dia, if one does not already exist," he adds. video production company with opera­ Karl A. LaPeer tions in New York and Los Angeles. Prior MBA '93 to joining HSI, he spent nearly three years is vice president of investment management Michael B. Adams with Pillsbury, Madison 8c Sutro, LLP, one 95 with one of Michigan's largest private equity MBA '95 of the nation's largest law firms. "After funds, Peninsula Capital Partners, in De­ graduating from the B-School, I stayed in was selected by his co-workers as the Em­ troit. Before attending the Business School, Ann Arbor to earn my degree from the law ployee of the Year in recognition of his he spent seven years in robotics and automa­ school and continue working for the exemplary job performance and commit­ tion engineering. "I did what the career University's Athletic Public Relations of­ ment to quality. Mike is engineering man­ counselors said not to do—have three jobs fice," writes Randy, who now is perfectly ager for Brazeway Inc., in Adrian, Mich., before finding the right one. At Peninsula I positioned to attend the Rose Bowl. which is a supplier of components to the am both challenged and fortunate enough residential refrigeration and automotive air to be able to spend time with my wife and conditioning industries. Marc A. Wites two young children." BBA'91 Brian Jeffries Thomas Peck recently published an article titled "The MBA '95 Franchisor As Predator: Encroachment MBA '93 and the Implied Covenant of Good Faith" recently returned from an 18-month assign­ was recently pro­ in the Spring 1996 issue of The University of ment in South Africa and was married on moted to manager in Florida Journal of Law and Public Policy. Marc May 17 to Rachael Ratcliff-Smith. Rachael the tax department of received his law degree in 1994 from the and Brian met in Tokyo while Brian was the Michigan Practice University of Florida College of Law, where enroute to a William Davidson Institute of Deloitte & Touche he served as a member of the Florida Law internship in Shanghai. The wedding was LLP. Tom is a mem­ Review and Moot Court Board. He now attended by many Business School grads, ber of the Corporate practices complex commercial litigation at including Lee Boyd, Lisa Andujar, Karen Finance practice area, Homer & Bonner, P.A., in Miami. His e- Wisham, Sean Hudson, Mike Barrett, Al specializing in busi­ mail address isl: [email protected]. Bowles and Ed Hightower. Brian is still with ness valuations for tax, merger/acquisition Gemini Consulting and doesn't yet know and litigation purposes. He is a member of where he and Rachael will be living next. QO Scott Stieler the Association for Investment Manage­ ment Research, the Institute for Chartered MBA '92 James Neuburger Financial Analysts, the Michigan Association left Dun & Bradstreet Corp. last year to of Certified Public Accountants and the MBA'95 join the Anglo-Dutch publisher Reed- Financial Analysts Society of Detroit. He is an associate with Booz-Allen & Hamilton Elsevier as their vice president of market­ resides in Ann Arbor with his wife, Debbie, in Los Angeles working with the Operations ing. Reed-Elsevier focuses primarily on and is based in the firm's Detroit office. Management Group, aligned with the Engi­ electronic opportunities within the legal neering/Manufacturing Group. Jim reports publishing marketplace. On March 31, most of his work is in the aerospace and 1997, Scott and his wife Jean had their 94 David Henstrom automotive industries and has enabled him third child, Kent Scott Stieler. MBA '94 to work in Los Angeles, Seattle, San Fran­ cisco, Dallas, Chicago, New York, Detroit is a project team leader with Cargill, Inc. in and other places. Q 3 Terry Hamilton Minneapolis. Since graduating from the MBA '93 Business School, he and his wife and two Jim Ryan boys have lived in Tampa and Minneapolis. is senior manager with Deloitte 8c Touche They are expecting a third child as this issue MBA '95 Consulting Group in Detroit. He worked goes to press. Dave notes that he ran his first moved to Salt Lake City, Utah, immediately

Dividend / 37 after graduation to be district sales man­ Calendar of Events ager for General Motors' GMC Division. In November 1996, GMC merged with the Here's a glimpse of Business School activities in the months ahead. Dates that are underlined are Pontiac Division, and Jim relocated to open to alumni and the Business School community. Dates that are not underlined have restrictions; Cleveland, Ohio, to be metro district sales call for details. manager for Pontiac-GMC. "It's been an interesting challenge joining the different AUGUST 31-Nov. 1: Reunion Weekend Honoring Classes of '72, '87, '92, '96 (See below) cultures at Pontiac-GMC,"Jim says. "I've 25-Sept. 2: MBA Leadership Development Program had a great opportunity to experiment 31: Reunion Friday for Honor Classes-Executive with some of Jeff DeGraff s change method­ 26-29: BBA Orientation Skills Workshop Wayne Baker on "Networking ology theory."Jim hopes to take on a brand Your Way to A Better Job and Thriving Career," 28: Global Citizenship Day MBAs, faculty, staff, management assignment in the near future 1:30-5:30 p.m., Rm B1270, UMBS; Welcome Recep­ corporate/nonprofit partners offer volunteer at the new RenCen headquarters in Detroit services at several sites in Michigan. tion 6-8 p.m., Executive Residence; Go Boo Family Trick-or-Treat 7-8 p.m.; Evening on Main Street, and eventually pursue an overseas assign­ SEPTEMBER class dinners/downtown shopping, 8-midnight. ment. "Living in Cleveland, I've returned to Registration fee of S40 per person for Fri./Sat. Ann Arbor a few times," he says. "Recently I 17: Dean's Speaker Series Aldo Papone, member, events excluding Evening on Main Street and attended the UM/MSU basketball game American Express Board of Directors/former football game tickets: S20 for Sat. only. Call and hope to make some football tailgates chairman, American Express Travel Related .Alumni Relations (313) 763-5775. Services, to speak; 4p.m., Hale Auditorium, this fall." UMBS. Call D.Sanford (313) 936-3515. NOVEMBER 18: Executive Skills Workshop Robert J. Sternberg L Reunion Saturday for All Alumni—Continental Break­ Julie Ask on "Developing Successful Intelligence," 6:30- fast 8-9 a.m., Hale Auditorium Lobby. UMBS; Executive 96 8:30 p.m., Hale Auditorium, UMBS. Call Skills Workshop Noel Tichy on "The Leadership En­ MBA '96 S.Keller (313) 647-4919/[email protected]. gine: How Winning Companies Build Leaders at .All is an associate with the Operations Manage­ 19: Presidential Inauguration for Lee C. Bollinger 5KLevels, " 9-10:30 a.m. Hale Auditorium. UMBS; Football ment Group in the Cleveland office of Run/Walk, North Campus, 7:30 a.m.; Academic Tailgate, immediately following seminar. Business Booz-Allen & Hamilton. After receiving her School Portico: Homecoming Football Game, Minnesota Procession, Hill Auditorium, 10 a.m.; Installa­ bachelor's and master's degrees in electri­ at Michigan, time TBA S20 per person excluding tion Ceremony, Hill Auditorium, 10:30 a.m.: cal engineering and computer science Reception, Ingalls Mall until 2 p.m.; Arts Sym­ football tickets. from MIT, Julie worked as a project engi­ posium, "A New Leaf: Inaugurating *YoHA,' 2: Alumni Leadership Conference for Club/City- neer for a subsidiary of General Motors in Year of Humanities and Arts," Rackham Build­ Contacts, Global Blue Leaders. Reunion Plan­ Wuppertal, Germany. After she earned her ing, 3-5 p.m. ning Committee. Board of Governors, 8:30 a.m.- 4:00 p.m., UMBS. Call .Alumni Relations MBA, Julie decided to see some of the National Black MBA Conference UMBS Alumni Re­ world before returning to work. Her travels ception Wyndham Anatole Hotel, Dallas, Tex. (313) 763-5775. took her throughout the western and Call B.Spight (313) 761-6033/bspight@ 7-8: Fifth Annual Mitsui Life Symposium Guest midwestern U.S. in a 10,000-mile journey. umich.edu. speakers: Eisuke Sakakibara, Japanese Vice Minister of Finance, Jeffrey D. Sachs, director, Upon her return, she then headed to Ire­ 25: Dedication of William Davidson Hall Renaming land, Egypt, East Africa, Zanzibar, of Business School Tower. 4:30 p.m., UMBS. Harvard Institute for International Develop­ ment; Hale Auditorium, UMBS. Call S.Stapish Mauritius, Malaysia, Hanoi and Ankor. "Af­ 26: UMBS Board Meetings .Alumni Society Board (313) 764-5222. ter that, we just plopped down at poolside/ of Governors, Corporate Advisory Board, beach in Bali for three weeks to rest," Julie 8: Executive Skills Workshop Gar Trusley on "Del­ National Campaign Committee, and Visiting writes. "I'm looking forward to both my Committee. egation: Inspiring and Developing Others," 9a.m.-12:30 p.m., Wolverine Rm, UMBS. Call next assignment and planning my next 26-28: Workshop on Organizational Change in S.Keller (313) 647-4919/[email protected]. vacation." Transition Economies William Davidson Institute, UMBS. Call M.Lee (313) 763-5880. 13-14: 11th Annual UM Real Estate Forum "The Expansion of Detroit's Metropolitan .Airport/Its Brent Baarda OCTOBER Impact on Regional Development." Nov. 13: MBA '96 3: Executive Skills Workshop Peter Turla on "Time Hvatt Regencv. Dearborn, Mich: Nov. 14: is now a consultant in the Food Retail/ Management Made Easv," 9a.m.-12:30 p.m., UMBS. Call KCIoster (313) 764-4276. Michigan Room, UMBS. Call S.Keller (313) Restaurant division of Senn-Delaney, a unit 20-21: National Manufacturing Recruiting Forum of Arthur Andersen LLP in Chicago. Senn- 647-4919/[email protected]. hosted by Tauber Manufacturing Institute Delaney was private until about five years .14: Cleveland Alumni Club/UM Alumni Assoc. "Re­ and National Coalition for Manufacturing ago, when purchased by Arthur Andersen, ception, dinner, dialogue with President Lee Leadership, Crowne Plaza, Ann Arbor. Call Bollinger," Landerhaven, Mayfield Heights, K Malinowski (313) 998-8160. j and is the largest consulting firm focused on retail. Brent is joined by five UM MBAs Ohio. Call .Alumni Relations (313) 763-5775. 25: Japan Alumni Club Lecture Gunter Dufey on from the class of 1995. 17-19: Conference on Labor Markets in Transition "Problems in Paradise: Financial Turbulence in Economies, William Davidson Institute, UMBS. Southeast .Asian Markets," the ForumTokyo. Amy Bailey Call H.Martinson (313) 9360041. Call: T.Suzuki at 81-054-202-0030. MBA'96 21:/. Ira Harris Distinguished Lectureship Series Hon. Brian Mulroney, former Canadian prime JANUARY is an assistant brand manager with Kraft minister, to speak. 4:30 p.m.. Hale Auditorium, 19: Martin Luther King Jr. Day Celebration Address Foods in Chicago. She works on the Kraft UMBS. Call D.Sanford (313) 936-3515. by Clarence Page, columnist/editorial board brand salad dressings business. Before busi­ member, Chicago Tribune, 1:30 p.m., Hale Audi­ 24-25: Office of Tax Policy Research Conference ness school, Amy worked for three years for torium, UMBS. Call D.Sanford (313) 936-3515. "Does Adas Shrug? The Economic Conse­ Andersen Consulting building manage­ quences of Taxing the Rich," Hale Auditorium, ment reporting systems. UMBS. Call M.Ceccanese (313) 763-3068.

38 /SUMMER-FALL 1997 Dawn McKinley Chien land before joining the faculties of UM's Regents of the University: Business School and School of Public Laurence B. Deitch, Bloomfield Hills; Daniel D. MBA '96 Horning, Grand Haven; Olivia P. Maynard, Health in 1956 as an assistant professor. Goodrich; Shirley M. McFee, Battle Creek; reports she and Andy have just bought a Within 10 years, he was named a full pro­ Rebecca McGowan, Ann Arbor; Andrea Fischer new home in the Washington, DC, area. fessor. Except for a visiting professorship in Newman, Ann Arbor; Philip H. Power, Ann "Employment is inevitable," Dawn says, 1985 at the Harvard University School of Arbor; S. Martin Taylor, Grosse Pointe Farms; Lee C. Bollinger, ex officio now that they also have a wonderful new Public Health, he served virtually his entire mortgage. She can be reached by e-mail: academic career at the University. The University of Michigan, as an equal oppor­ [email protected]. "Two hallmarks of Prof. Southwick's tunity/affirmative action employer, complies career were his concern for students and with all applicable federal and state laws regard­ Eric Harnish ing nondiscrimination and affirmative action, his emphasis on high-quality research," the including Title IX of the Education Amend­ MBA '96 University of Michigan Regents said when ments of 1972 and Section 504 of the Rehabilita­ he retired in 1990. tion Act of 1973. The University of Michigan is is part of the Pathways Leadership Devel­ committed to a policy of nondiscrimination and opment Program at Allied Signal and Arthur wrote The Law of Hospital and equal opportunity for all persons regardless of currently is developing marketing pro­ Health Care Administration and numerous race, sex, color, religion, creed, national origin grams to expand the aftermarket aero­ articles and book chapters. His scholarly or ancestry, age, marital status, sexual orienta­ work, which has had a significant influence tion, disability, or Vietnam-era veteran status in space business. Eric and his wife reside in employment, educational programs and activi­ Phoenix, and he reports they thoroughly on the development of hospital and health ties, and admissions. Inquiries or complaints enjoy the great weather in the southwest care law, is frequently cited in research may be addressed to the University's Director of as well as the great hiking in the moun­ journals and court decisions. Affirmative Action and Title IX/Section 504 Arthur is survived by his wife, Eliza­ Coordinator, 4005 Wolverine Tower, Ann Arbor, tains in and around Phoenix. Michigan 48109-1281, (313) 763-0235, TDD beth, his brother, two daughters and seven (313) 647-1388. For other University of Michi­ Janis Powers grandchildren. gan information call (313) 764-1817. MBA '96 has focused her career on strategic real estate management, facilities planning Share YOUR News... and capital budgeting. After earning her BA in architecture from Yale in 1991, Name: Janis worked as a facilities analyst for Chase Manhattan Bank in New York. Two (include name while in school) years later she enrolled in Michigan's MBA/Master of Architecture program, Degree (s) and Class Year(s): spending one summer in Warsaw organiz­ ing the business practices of a small archi­ Job Title: tectural and urban planning company. Employer:. Upon graduation, Janis joined the Dallas practice of Deloitte & Touche Consulting Business Address: Group, working in the health care area. She intends to continue working in Phone: health care and facilities planning, hop­ ing to enter the growing New York and E-mail Address:. Texas health care markets. Home Address:

Arthur F. Southwick, MBA '50, professor emeritus of health sendees management and policy at the School of Public Health and professor emeritus of business administration at the Business School, died in Ann Arbor on March 3, 1997. He was 73. Born, raised and educated in Wooster, Ohio, Arthur entered the Business School's MBA program after graduating from Mail to: Dividend, The University of Michigan Business School, 701 Tappan Street, Wooster College in 1947. He completed his Ann Arbor, MI 48109-1234; Fax to: (313) 647-2401; or E-mail: [email protected]. business degree in 1950 and his law degree Your submission will appear in the Class Notes section of Dividend and Dividend On-Line from the University of Michigan in 1951. and your contact information will be used to update our alumni database. For five years, he practiced law in Cleve­

Dividend / 39 Quote UnQuote A sampling of insights from faculty appearing in the media and quotations from guest speakers at the Business School. 66 The gurus—most of whom started off as aca­ 66 CLAES FORNELL thinks lousy service distorts our demics rather than consultants—have been respon­ picture of the economy. Prices may look the same, sible for all the more striking management ideas of but the dollar doesn't buy the same service it used the past few years. Two pairs of gurus have exerted to. The result: inflation may be higher than we think. more influence than all their rivals put together: For now." Michael Hammer and James Champy, the fathers of The June 23, 1997, issue o/Newsweek re-engineering, and C.K. PRAHALAD [the Harvey C. magazine included "Dissing Customers: Why the Fruehauf Professor of Business Administration] and service is missing from America's service economy," Gary Hamel, the authors of "Competing for the a business article based upon the work of CLAES Future"....For the past de­ FORNELL, the Donald C. cade Mr. Prahalad and Mr. Cook Professor of Business Hamel have wielded the sort Administration and creator of influence with top bosses of the three-year-old that make the McKinseys of American Customer this world a little nervous." Satisfaction Index. The "In Praise ofOne-Man quarterly index, which Bands,"The Economist, tracks customer satisfaction March 22, 1997 based on interviews with 16,000 consumers of 200 companies in 33 industries, 66 High involvement compa­ has documented declining nies are ones where the satisfaction in customer workers see a connection be­ service every quarter since tween the work they do and its inception. the goals of the organization. They feel they have an influ­ ence over some aspect of the 66 In my first year on Wall Street [1968], trad­ 66 What we're seeing is that work. Some people even say ing volume of only 15 million shares a day was an incubator is more than they own this part of the or­ sufficient to create such a back-office crisis that just a facility. It's important ganization." the market frequently was only open four days that the companies not just DANIEL R. DENISON, a week and trading hours were shortened from have a place where they can visiting associate professor 10 a.m. to 2 p.m. Now, the New York Stock have cheap rent, so to of organizational behavior Exchange trades over 400 million shares a day speak. There needs to be an and human resource with another 500 million on NASDAQ with prob­ active program of support management, quoted in an ably fewer back-office personnel and a lot fewer for the businesses." article titled, "Company's mistakes. This has allowed the total value of LAWRENCE A. 'Culture' Affects Bottom all American stock markets to exceed $8 tril­ MOLNAR, senior research Line" that appeared in The lion. This is as large as the equity markets of associate, Business and Detroit News on Feb. 11, Japan, the UK, Germany, France, Canada and Industrial Assistance 1997. The article focused on Italy all put together. This extraordinary depth Division, University of a major study by Denison and mobility of capital has brought about a re- Michigan Business School, that links a company's vitalization of the national industrial balance on National Public specific cultural traits to sheet. Not only are corporations as well-funded Radio's Morning Edition performance measures such as they have been ever been, venture capital is on June 16, 1997. Molnar as profitability, market bountiful for anyone with a good idea." co-authored a study on share, return on investment DAVID ALGER, MBA '68, is the president business incubators that and innovation using an and CEO of Fred Alger Management, Inc., the found a 225 percent assessment tool he developed New York-based money management firm, and increase in jobs created per called the Denison Organiz­ the author o/Raging Bull: How to Invest in incubator between 1990 ational Culture Survey. the Growth Stocks of the '90s (1991, and 1995 and a 521 percent Business One Irwin). On May 2, 1997, Alger increase in revenues delivered the Business School's spring generated by incubator commencement address, during which time he tenants in that same time made the statements quoted above. period.

40 /SUMMER-FALL 1997 ith more than 50 years of experience in executive education, the University of Michigan Business School is a proven leader in developing top-achieving executives. Publications such as Business Week and The Wall Street Journal rank Michigan first in executive education.

Today, successful leadership demands innovative thinking with a global perspective. Executives from all over the world look to our executive development programs to acquire the concepts and high-impact ideas they need to excel in today's competitive environment. These are the leaders who will take their companies to the forefront of the 21st century.

Join the successful business leaders who have benefited from the experience, associations, and expertise only available at Michigan. For more information or a free program catalog call 313.763.1003, ext. 234.

Executive Education Center University of Michigan Business School Ann Aitor, MI 48109-1234 USA Phone: 313763.1003 Fax: 313763.9467 World Wide Web: http://www.bus.umich.edu E-mail: [email protected]

EXECUTIVE EDUCATION CENTER

UNIVERSITY OF MICHIGAN BUSINESS SCHOOL Office of Alumni Relations University of Michigan Business School NON-PROFIT 701 Tappan ORGANIZATION Ann Arbor, Michigan 48109-1234 U.S. POSTAGE PAID Address Correction Requested ANN ARBOR, MI PERMIT NO. 144

Black Business Students Host 21st Annual Conference

early 200 participants— Ncurrent and prospective stu­ dents, alumni, faculty, corporate sponsors and guests — took part in one of the largest student-organized events of the year, and the largest single activity of the Black Business Students Association. "Conference 21: The Future Is Now!" was held March 14-16 at the Crowne Plaza Hotel in Ann Arbor. The theme of the 21st Annual BBSA Alumni Business Conference was "Achieving Excellence Through Unity, Reflection and Renewal." Eric Gilkesson, MBA2, Crystal Parker, BBA2, and Jeffrey Williams, MBA2, planned the conference. The three-day event began at the Business School. Prospective BBA and MBA students were given the opportunity to learn more about Michigan by visiting with current stu­ Nearly 200 people attended the Black Business Students Association's dents, faculty and administrators. 21st annual conference, including (left to right) Sara Jackson, Monica Young, T. Eugene Munson and Mario Jenkins. Later, several teams of MBA stu­ dents participated in the Ernst and Young Case Competition. The competition, which On Saturday, panel sessions addressed four topics: was judged by consultants from Ernst and Young, The Demystification of Mass Marketing, The State of Booz-Allen, Andersen Consulting and Allan Afuah, Race Relations in Corporate America, Doing Business assistant professor of corporate strategy, is the culmi­ on the Internet, and Perspectives on Entrepreneurship. nation of two weeks of teamwork devoted to resolving Keynote speakers included author George Fraser; a real-world business problem. MBA1 students Jonathan Slocomb of the Arsenio Hall show; Keith T. Donald Houston, Bral Spright and Lewis Hennebrew Clinkscale, president and CEO of Fife magazine; and won the competition and will represent Michigan at Don Coleman, president and CEO of Don Coleman the National Black MBA Association conference in and Associates Inc., and a Michigan alumnus. Dallas this fall.