Dividend Volume XV, No. 3 Spring-Summer, 1984

MBA Perspectives 4 Ten interviews that illustrate the diversity and solid achievements of an MBA student body that keeps a first-rate faculty on its toes. The Computer as Pandora's Box by Manfred Kochen 17 To what extent are we at the mercy of technological imperatives that could shape our lives? Or are major changes in lifestyle likely to come to our notice after technology has insidiously grown for some time, catching us unaware? This article explores some of these issues. A Quiet Mover and Shaker by Linda Benson 21 Jesse Hill, Jr., MBA '49, is the dynamic president of the largest black-owned insurance company in America. He also wields considerable political clout. Paton's Puzzles 24 His new book is a radical departure for Professor William A. Paton, whose publications have virtually revolutionized the accounting field. In this very personal book, Paton has gathered together a lifetime's treasure of word games and puzzles for our delight and edification. Among Ourselves 27 Three new joint degree programs approved; W. A. Spivey receives outstanding teacher award; Anneke de Bruyn Overseth promoted to associate dean; Professors Imhoff and Kim are appointed to named professorships; Three accountants of the year named by Beta Alpha Psi Chapter; Seminar in Project Management offered by executive education; Murray Weidenbaum outlines report card on Reaganomics as 17th Mclnally Speaker. Campaign Reaches $14.5 Million 32 Corporations and foundations giving amounts to our Capital Campaign ranging between $50,000 and $2,500,000 are a distinguished list. Meanwhile, two of our new buildings-in-progress are almost finished. Class Notes 34 About the Cover When Carolina Garcia, pictured on our cover, decided to add an MBA to her engineering credentials, she chose Michigan and says, "I have felt I made the right decision every day of the week." More about Carolina on page 14. Photo by Virginia Geren.

Dean: Gilbert R. Whitaker, Jr. Assistant Dean and Director of Development and External Relations: Anneke de Bruyn Overseth Editor: Pringle Smith Editorial Assistant: Leslie Southwick Copyright © 1984 by the Michigan Business School Printed by The University of Michigan Printing Services. This publication is made possible through the generosity of private donations.

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ro look at our beautiful new buildings-in-progress. For more information, see pages 32-33.

3 t's not as if getting the MBA was responsible for all aspects of the I a late idea in my head," says organization, including fundraising, Ken Sikkema. "In fact, I took the lobbying, budget development, and B.A., History G-Mat my first year out of college. media relations. In that post, he It's just that I finally got to the led negotiations with the Shell Oil Harvard University point where the timing was right." Company which resolved the twelve Work Experience: Politics After receiving his BA in history year dispute over oil development cum laude from Harvard in 1974, in the Pigeon River County State Ken entered what he calls "the best Forest (located in the lower graduate school in the world" — peninsula northeast of Gaylord). He "After 4*/2 years of politics that is, the world of politics. As a took the job because, he says, "after on the inside, I was legislative assistant for State Senator 4'/2 years of politics on the inside John Otterbacher, he managed I was becoming somewhat becoming somewhat two statewide political campaigns, disenchanted. It partly happens disenchanted. It partly coordinated the passage into law of because of the pace. You literally happens because of the twelve pieces of legislation, and don't have the time to manage the acted as a "gofer" — legislative aide, ideas yourself — you are forced to pace. You literally do not research assistant, and constituency rely on the lobbyist structure, and have the time to manage relations aide. Why does he describe a subtle erosion takes place. the ideas yourself — you this as the best graduate school in "I looked at how 1 was dealing the world? Ken pauses thoughtfully, with people, and realized that I are forced to rely on the "I guess it's because in politics was not really listening any more. lobbyist structure." you're dealing with ideas in the Someone would be talking about same way you do here, but in a very what was right and wrong with a real life context. What happens to particular issue, and I would be those ideas in terms of legislation is thinking about the politics of it — very important to different groups the compromises that needed of people. Your limits are constantly to be made, how we could get the being tested — you are always majority of three votes required under some kind of pressure or whatever — rather than the and dealing with people in an substance. I didn't like what the environment where big issues are at process was doing to me, but I still stake. And that produces a powerful wanted to stay involved in politics as combination of intellectual and a medium for change. This had a personal growth." lot to do with my decision to work After 4V-J> years in politics, Ken on the system from the outside, and became executive director of the resulted in my accepting the job Wrest Michigan Environmental with the Environmental Action Action Council, Inc., where he w?as Council. That job renewed my faith that the system can be used for good purposes. Ten t illustrate t of an MBA student body that keeps a first-rate faculty on its toes.

"The political process doesn't serve its purpose if only a few use it. You need citizen activism combined with political and legislative savvy if you are going to get results. I strongly believe that there is a need to balance environmental protection with economic vitality. I think we fail if we don't accomplish both. In the resolution of the Pigeon River issue I tried to apply that principle of balance. I have noticed that when people have deep personal or financial issues at stake, they become very polarized, and I don't think we can afford that." During his eight years in politics, Ken says he developed some management and leadership skills, but they were what he calls "raw skills." He felt the MBA degree would give him some sophisticated intellectual tools that would put those skills into a framework. After graduation, Ken plans to work for Herman Miller in the product management department. Politics, he says, will always be an avocation for him, but right now, he wants to become a really good general manager. "A good general manager knows how to assemble resources — people, financial resources, technical resources — in such a way as to make something worthwhile happen. The 'worthwhile' is very important," he says, "because to me success is having both a sense of personal fulfillment and a sense of having contributed something worthwhile to society."

5 Lula Powell

B.A., Elementary Education Eastern Michigan University Work Experience: Captain, U.S. Army

"The average recruiter I was supervising had 15 years of experience, and I only had 4. Plus I was black and female. There were days I thought to myself, 'I canH believe I asked for this job."

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S~3 • *** aptain Lula Powell of the U.S. C Army is a risk taker. Before ^W€i &**n coming here for her MBA she •••—..JP* served as aide-de-camp to a general and as area commander for the Charleston recruiting area — both tough jobs with a lot of visibility, and a lot of potential for getting on the fast track, provided you succeed. But we are getting ahead of the story. Lula's decision to join the Army came after her discovery that so I did, and all that was left was the money and maintaining the teaching was not for her, which she the physical which I also passed. books." says, "really put me at a loss. I had Then it was decision time. I figured After two years on that job, Lula graduated from Eastern Michigan that since I wasn't sure what I was asked if she wanted to apply with a degree in elementary wanted to do, this would give me for the post of aide-de-camp to education and taught for a while. two years to try something out and the general who was deputy I had always thought that was what to think about my future. So I commander for the Army Recruiter I wanted to do, and when I found joined, and I love it. It has been Command. Those jobs are hard to out it was wrong for me, I didn't a great career, because from the come by, particularly for women, have any idea what to substitute beginning everything has gone but she decided to try for it anyway. for it." my way." "That general was a pioneer," she It was in this frame of mind that Lula's first tour of duty was as a says. "I learned a lot from him. He she decided, just for fun, to go into finance officer at Ft. Hood, Texas, had eight children, six of whom an armed forces recruiting station, and she says with a smile, "that's were daughters, and told me once and see what they would say. where I got my first million dollars. that he wouldn't have been able to "I talked to all of them — the navy, The Federal Reserve truck would live with himself if he hadn't chosen the marines, the air force and the drive up every month with new me as his aide because, he said, 'you army," she recalls. "They all offered money right from the printer. were the best qualified.' " As his me a commission, but the army said Believe me, there were plenty of aide, it was her job to coordinate all I could join up for a two year tour guards and I walked around with a his travel activities, attend meetings, of duty, w-hereas the others all 45 on my hip. Among other duties and act as his administrative wanted four. So I took the Army we set up check cashing points for assistant. "My job was also to take test just for the heck of it, and the soldiers to cash their paychecks. care of the luggage," she says with a passed it. Then the recruiter said I had a staff of 15 people, and we grin. "We did a lot of traveling, his why not try the interview too, and were responsible for accounting for suitcase was very heavy and he was

6 a fast walker. I managed with it 9 O.K., but I did appreciate it one Daniel 0 Le day when he called me in his office IHSHI and presented me with a luggage B.A., History of Art carrier with wheels." Princeton University After two years as aide to M.S., English the general, she asked for the The University of Michigan assignment of area commander of the Charleston, South Carolina Ph.D., History of Art recruiting area. She became the first The University of Michigan female area commander that the Work Experience: Newspaper Army had ever had, and they have Reporter, Assistant Curator 256 areas. "I have never felt as much pressure as I did on that particular job," she says. "I didn't "I think people who have feel I could let my guard down and relax even for a minute. The joined a doctorate with an average recruiter I was supervising MBA have a better chance had 15 years of service and I only of finding new solutions had four. Plus I was black and female. There were days I thought for their institutions. to myself, 'I can't believe I asked for There is so much this job.' But when my two years were up, my area was one of the competition now in the top ten in the Region. I could have non-profit sector. taken a safer job, sure, but it Marketing has become wouldn't have been as much of a stepping stone for my career. And key." when that job was over and the assignment officer called to ask me what I wanted to do next, I said, 'I want to go to graduate school,' and so here I am, Michigan is my home, and it's good to be going to school here. I am learning a lot of new ideas — new ways to look at the organization — how it's structured, how you handle the people." Her next assignment will be either a staff advisory position rhen Daniel O'Leary was doing working as an organizational his Ph.D. dissertation in the development person — or an history of art, he chose to study the instructor at Ft. Benjamin Harrison, 15th century banker who managed Indiana, where the personnel the Medici Bank in Rome. "I started training school is located. "I expect out being interested in the painting at some point," she says, "to juggle and architecture he commissioned, a home and family with the military and ended up being fascinated with life. My ultimate goal? That's hard his career and the way he ran his to say. If I were out of the Army I business," says Dan. "I examined would be torn between going into his bank records for 15 years — I business or starting a nursery reviewed his loans and sympathized school, because I really love little with his concerns about the security children. But I'm going to stay in of the loans. He w-as full of anxieties the Army. When you have a job and about European macroeconomics everything you ask for they seem to that he expressed in letters to his be listening to you and you get it, nephew, and he combined his that's a good job. I like being a business sense with patronage of the leader, and taking responsibility. arts." Who knows? Some day I'd like to be a general, but if not (with a smile), Five centuries later, the I will accept colonel." combination of support of the arts and business acumen is still an issue,

7 says Dan, and in fact he sought the different segments of your public MBA because he is particularly and then serve those needs is often Karen Packard interested in the management the crucial element in determining of large, non-profit institutions, whether a non-profit organization B.S., Nursing particularly museums. will make it. People who handle Ohio State University "It's important for museum marketing for those institutions may M.S., Nursing directors today to be conversant be called by other titles, but they with the language and thought recognize that marketing is their Ohio State University processes of the business world," role. Work Experience: Psychiatric he explains, "as well as to know the "I must say I have received an Nursing artistic and scholarly aspects of their excellent education these past two work. I think people who have years," says Dan. "In fact, I wanted joined a doctorate with an MBA to leave the best of my professors 6i 7 I don't look back and have a better chance of finding new some kind of memento of solutions for their institutions. The admiration when I graduated, but regret my nursing — in success or failure of the museum when I went through the list of the fact, I feel fortunate for often depends on how clearly the 18 professors who taught me while the experiences it gave me, director perceives a problem and I was here, there were so many of all of its ramifications, how well he them who were my favorites. Most hut I enjoy business school understands the viewpoints of all of them are real stars. Teachers much better." the parties, and how well he is able here pride themselves on their to articulate these positions to the classroom performance, and I'm board. Nonprofit institutions are proud of at how good they are." facing up to financial crises in the What about success? Dan pauses 1980s, when the publics they serve thoughtfully. "I think a successful got out of business school are changing and the goals they person is one who chooses a large have are being challenged." I exactly what I wanted," says enough challenge so that it's not Karen Packard, wrho decided to Eventually, Dan says, he would clear he has the capability to solve come here for her MBA after eight like to work in a turnaround it, and then pulls it off. Success is years in the field of psychiatric situation for a museum. One of his finding a problem that is bigger nursing. "I don't look back and heroes is Vartan Gregorian, whom than you are and then growing up regret my nursing — in fact, I feel he calls the Lee lacocca of to it." Another aspect of success to fortunate for the experiences it gave non-profit organizations. Gregorian Dan is being able to incorporate me, but I enjoy business school took over the New York Public interests and career. "Ideally," he much better." Library in July of 1981 and since says, "I don't want my leisure time Karen, whose work experience that time has brought about a to be an alternative to my work, but includes a nine month stint as acting transformation that among large an extension of it. For that, you director of psychiatric nursing at cultural institutions is recognized need to have the value system of the the University of Michigan as unprecedented. "What he did scholarly tradition but the tools of ? Hospital where she had financial w as turn around a leviathon in a the business world. I think the MBA responsibility for a two million bathtub," says the Library trustee is going to make it possible for me dollar budget and managerial Richard Salomon (who is also to tie it all together." responsibility for 150 nurses and chairman of the board of trustees five inpatient nursing units, at Brown University. "It's hard to received both bachelor's and believe that the influence of one master's degrees in nursing from man did so much in so short a Ohio State University. She first time." Dan explains that Gregorian worked for a community mental motivated patrons, dealt with the health center providing crisis political bureaucracy in New York, intervention for clients experiencing hired the right people, brought all psychiatric emergencies. Later she kinds of business expertise into taught psychiatric and community the area, and turned around an health nursing as an assistant organization that had been on its professor at the University of last legs. Virginia. "There is so much competition "I really wanted nursing to be now in the non-profit sector," says a career and a profession for me," Dan, warming to his subject. she says, "but I found it very "Marketing has become key. The frustrating. There are a lot of idea that you analyze the needs of creative things you can do with patient care, but I always felt there

8 came to jobs in service areas such as banking, marketing and consulting. "A lot of the problems with health care have to do with private versus public sector orientations," says Karen. "I've decided to go into the private sector for now, because now is the time to make the switch. If later, I want to go back into a public sector or medical products industry, I think I can do that fairly easily." Karen has been self-supporting since she was 18, and in fact has been working as a clinical nurse specialist while an MBA student. "As hard as it was for me to work and be a student at the same time," she says, "it helped me maintain a healthy balance between school and life outside school. I was better able to keep things in perspective, and know that there are other important things in life besides cases and grades. I've learned how to make tough trade-offs, and that's going to continue. For instance, I would like to have a high level management position some day or own my own business, but I think other things are important, too, such as friends and family. I want to combine a personal life with my professional life. I know it's difficult, but I've managed difficult combinations before. "I haven't found as much resistance to women in business as I expected," she continues. "If you view nursing in the larger picture of health care, the industry is dominated by male physicians and hospital administrators. This fact never interfered with my ability to accomplish something. I have found a fairly similar situation in business. Although I do feel there should be more mention of women in our business school education, I do was a lid on the opportunities to get out of health care altogether, not think the women students are available to implement new ideas but she says, "I've been able now to treated differently or unfairly. A lot and to advance professionally. I had get some distance on those years of how you're treated, of course, is done research and published my in nursing, and I think it may dictated by how you behave and results and also contributed two eventually benefit me to capitalize present yourself. And a lot of chapters to a psychiatric nursing on my experience in the health feeling good about what you do is textbook. As much as I felt I was care industry. In the process of being comfortable with who you are accomplishing, I wasn't satisfied interviewing for jobs, I found that and respecting what you do." with the financial or career my knowledge of human behavior Karen has accepted a position opportunities available for nurses." combined with my analytical and with The Carroll Group, an Ann When Karen started studying technical skills was appealing to Arbor based general management toward the MBA, her intention was many employers, especially when it consulting firm.

9 ary Ann Caballero

B.A., Sociology The University of Michigan -.'••'*$$%$?.? Work Experience: Financial Consultant

"I chose Michigan because I knew it was a quality school. I had been accepted to several other schools with full scholarship, but I decided to come here."

t was when Mary Ann Caballero year especially, I found the work After her first year in the MBA served as president of the board very challenging, mainly because a program, Mary got a summer of directors of University Cellar, lot of it was theory and I am an internship in finance with Eli Lilly. Inc. that she knew business was applications person. Second year Her assignment was to develop a definitely for her. "There were all was easier because so many of the database for the use of the chief sorts of things to deal with," she courses are case courses where you financial officer of the company. says. "I learned how to hire use the concepts you've learned." This meant taking all the balance management, negotiate labor "Success to me is being able to go sheets, the income statements, the contracts, and set up personnel to work every day and be happy key financial ratios, analysis of the policies. We had about 70 with what you are doing and with competitors, and putting it into a employees, including part time, what you have contributed. When I system that the top financial officers and assets of $5 million." Mary reach my goals, money and power were able to draw on. She had to Ann was appointed as a student will both come, but they will come learn the system, then develop the representative and six months later as an adjunct, not as the overriding graphics (over 350 bars, graphs, pie was elected president of the 14 factor. My goal is to be a chief diagrams, and bubble charts), then member board which included three executive officer of a Fortune 500 write the programs and procedures faculty members, a university company. I know that's a big order, and work on the implementation. administrator, eight students, two but things are changing for women She wrote a manual on how to use union representatives and the now. There are more women in and update the system, and trained store's general manager and entry level positions and a lot of eight financial analysts in how to assistant manager. At the time, women in mid-level positions," not use the system. After her summer Mary Ann was a senior sociology many at the top. work, she stayed on as a financial student. I figure it takes 20 or 25 years to consultant with the company, which meant flying to Indianapolis during After graduation, she went to the get to the top, and women haven't vacations and weekends to finish up School of Public Health's Hospital been looked at favorably in the the project. Administration School for one year business world for that long, so I'm before switching to Business School. hopeful that I will reach my goal. After getting her MBA, Mary will "I wanted more technical business I want a large company because of be an international financial analyst skills," she says, "and I realized I the challenge. I look for challenges. at a subsidiary of Eli Lilly in wanted to work in the for-profit And no, I don't expect to get Minneapolis, Minnesota. "The sector of health care. I have learned married with the goals that I have. company has been good to me," she a tremendous amount in this I really feel that to be what I want says. "I have interviewed with about program. I chose Michigan because to be I'm going to have to sacrifice 25 companies and flown to see 12 I knew it was a quality school. I some things, and I plan to be a or so, but Eli Lilly seemed the best. had been accepted to several other single person during that whole I think we have a good future schools with full scholarship, but I path." together. It seems to be a good fit." decided to come here. The first

10 and study after they are in bed. Allen Burdette I have tried to train myself to sleep only four or five hours a night, but B.A., Economics every so often I have to have a The University of Texas 'catch up' night where I sleep M.A., International Relations 10 to 12 hours." The University of The team of three that Allen originally worked with on the China Southern California Project has now blossomed into a 10 Work Experience: Senior person support team at American Marketing Analyst Motors plus nine people in Beijing Special Assignment, AMC's (Peking). Signing ceremonies in China Project Beijing in May, 1983 officially established the Beijing Jeep Corporation, China's first automotive and largest industrial "It's tough going to school joint venture today. "The market at night and working all potential for 4-wheel-drive in China is enormous," explains Allen, day. I've trained myself to "because their road system is sleep 4 or 5 hours a comparable to old country roads. night." Primary customers for these vehicles will be the government and commercial entities, but private individuals will also be able to buy them if they have the money (about $6,000)." But where would a Chinese private citizen get $6,000? A lien Burdette switched from the from the University of Texas and "There is a subtle encourage­ -T±- full time MBA program to the four years in the Army, during ment now in China for the evening program after a summer which time he received special entrepreneurial role," says Allen. internship at American Motors led training in the Army Intelligence "Many farmers, for example, are to the offer of a full time job as and Security Command, including now free to sell excess produce senior marketing analyst in the 16 months of intensive Russian at market-dictated prices. As an AMC international marketing language study. encouragement to increase group. Four months after accepting He then worked as an analyst productivity and efficiency, the that position and making the switch for army intelligence stationed in government is easing the stiff to the MBA evening program, Allen Munich, Germany, and at the same controls that used to exist. Four was offered the chance to work time finished a master's degree in years ago there were only a handful with the China project — a joint international relations, going to of joint ventures with a western automotive venture between school in the evening at a branch partner — now there are over 200. American Motors and the Chinese. of the University of Southern The Chinese want to learn how to "That was a wonderful experi­ California in Munich. "That use the resources they have in a ence," he says, "because it was experience got me in training for more technologically sophisticated so multifunctional. There were only the evening MBA program," he way, and joint ventures with western three of us in the beginning — the says, "and I have found the evening partners can help with that." director, an in-house consultant who program here excellent. It contains was Chinese, and me. We all wore the middle managers who have the Allen's role in the China project many different hats and operated jobs that day MBA students aspire was highlighted by a three week stay very much like a small business. to reach in ten years. They in Beijing, where he helped develop I was able to get an overview of are much more aware of the the joint venture's first year profit different departments. One day I'd complexities of real life situations, plan and capital equipment be doing finance work, the next day and since they already have a job, investment schedules. Shortly after I'd be concerned with marketing, are not as concerned with job his return, he was promoted to and the next day I might be placement and not as overshadowed supervisor, program administration reviewing documents with the legal by concern about grades as are for AMC's international operations department. I acted as liaison to students in the day program. And product group. After graduating, product, manufacturing, marketing, evening program students are Allen accepted a position in his legal, and public relations admitted under the same rigorous native city of Dallas, where he is departments in support of start up academic requirements as the day now an industry analyst on Texas operations for the project." students. It's tough going to school Instrument's corporate planning staff. Allen came to Michigan for his at night and working all day, MBA after a degree in economics though. I have two small children,

11 C © "9 ^' JSP ® B il & H 5k/ «^ i H ff^ ill »"^ H^ JLJBLJL%»& y osLJIJL^wJa.il.JL^w'JL B.F.A., Fine Arts The University of Michigan Work Experience: Art Director

"What makes the case method interesting is that so many different ideas and perspectives come out of the same material. You go to class and think, 'wait a minute — did you read the same case I did?9 ??

et's hear from our token art I-j major is a comment I used to get from one of my professors," says Cindy Ziemer, "but I like coming from a different background. There are a lot of BBAs and economics majors here — the typical paths to the MBA. Art, obviously not a typical path, gives me a differential advantage in the business world." Cindy started in the engineering program at Michigan because she was practical and good in math, but after two years in the program and two internships (one at Pontiac Motor Division and one at General Motors Technical Center), she decided industrial design offered her more than engineering, and so enrolled in the art school. After graduation with a bachelor of fine arts degree, she went to work for Roling and Rau, a small Wisconsin advertising agency. There she "In advertising, the MBA is a manager is not as 'married' to the created layout and design of business tool. More often than not, product and can therefore offer a advertisements for a variety the client has an MBA and you have more objective viewpoint. of clients, and contracted to know almost as much about his "Business school was not as photographers, models and printers business as he does. You have to difficult as I expected," says Cindy. for promotional material. "It was a learn the business language and "I think it's because everyone is small company and I wore a lot strategic concepts in order to create in the same boat. By that I mean of hats," she says. "It was just the his advertising and handle the everyone is going through the same experience I needed at that time. marketing issues that arise. The test-taking pains, case-review pains, But I wanted to be an account account manager also acts as a and going-to-class pains. When you manager, and for that I needed the consultant, because the client lives go to the library and everyone is MBA. So after a year in Wisconsin, with the product daily, he often reading the same book, you don't I came here. loses his objectivity. The account

12 feel as miserable. What makes it interesting, though, is that so many different ideas and perspectives come out of the same material. You go to class and think — wait a minute. Did you read the same case I did?" Last summer, Cindy worked on the United Airlines account as an intern with the Leo Burnett Agency in Chicago. "That internship gave me a chance to understand all aspects of the agency," she says, "including the media, research and creative departments as well as preparing strategic marketing plans. In the middle of the summer, I took over the responsibilities of an assistant account executive. I was lucky. As a summer intern I did the work of a full time employee." After graduation with her MBA, Cindy will work in New York. "With 55% of all U.S. advertising being produced there," she says, "it's a marvelous training ground. Also it's easier for me to move around now •4-^k -=' when I'm young and my plans are flexible than it might be later." She has accepted a position with Dancer, T^or Olivier LeCerf, some things Fitzgerald and Sample Advertising Olivier LeCerf -*- he learned in the MBA in New York. "When I interviewed program were, at first, a shock. there," she says, "I felt I fit in right M.S., Mechanical Engineering "The old French schools are like away. You can set up cost/benefit a polished stone," he says with models about where you want to go, Ecole Nationale Superieure dArts et Metiers, Paris, France deliberation, "in that a lot of topics but when it comes right down to it, in business don't surface. For who you work with is so important. Work Experience: Product and instance, in OBIR classes here we I think certain people might be Development Engineer talked about company culture. To successful in certain companies and me, this openness was impressive. not in others of the same industry. Issues such as ambition, So after the rational models, you "Issues such as ambition, Machiavellianism and politics in the have to follow your heart rather workplace are certainly a fact of than your head and go where you Machiavellianism and business life, but we don't talk about feel right. Success doesn't only come politics in the workplace them in French schools." from increasing the bottom line. Olivier, who has a master's degree It also comes from politicking, are certainly a fact of in mechanical engineering, came offering good solutions to problems, business life, but we don't to the United States from France finding the right support network, in 1982 on an internship with and keeping your eyes and ears talk about them in French Airesearch Industrial Division in open in order to recognize schools." Los Angeles. "I had to adjust opportunity when it's there. quickly to American business," he "There are some elements of says, "partly because no one spoke success that are difficult to teach in any French there. But the problems the Business School. In a sense, our I encountered weren't related as professors are teaching us partial much to language as to cultural solutions to problems that don't differences. For instance, respect have one answer. That's why the and recognition of decision makers MBA is a tool — it has taught us a is part of the American business certain way to learn, and then we way of thinking. Most people still have to build on that foundation." respect this as being an essential

13 part of the capitalist system. afraid to talk about the real issues In France, the young feel that affect a business, and the cases Carolina Garcia uncomfortable about giving orders, relate to the everyday problems that being responsible for others or a company encounters. We talk B.S., Engineering having people work beneath them. about real companies with real Case Western I feel this is due to the fact that a problems and real successes." M.S., Engineering growing anti-management feeling Olivier has not been overly has been developing in French affected by the rigor of the MBA The University of Michigan society for the past decade or so. schedule. "There comes a time Work Experience: Engineering Basically, if you are "in charge" you when you have to laugh about the are the "bad guy." pressure," he says calmly. "An MBA Olivier was prepared for this is one thing, but my health and my "I talked to a lot of people cultural difference, however, life are another. The pressure of at work about where I because between graduation from getting a high grade point has not college and coming to the United reached me as I feel it has reached should go for the MBA, States, he served in the French others. To see future managers and many advised me to Navy as an officer on a small arguing over two points on an exam warship that traveled mostly in is really a shame. When you're on go to Michigan. I have felt Africa and the Mediterranean Sea. the job, you're evaluated on results, I made the right decision "My commanding officer liked to not grade points." every day of the week." delegate," he explains, "so I rose to Eventually, Olivier wants to be in a position of great responsibility corporate finance, but his medium within a short period. I was in range plans are to be in operations, charge of 35-40 men and it took me including marketing and a while to get over ordering them production. "Because American around. You need to be careful business is so specialized," he says, about the way you give orders "some people may see this as a because there are a hundred ways want to have a good drastic change. But I feel that you everything," says Carolina the men can be nasty to you and are a better financial person if you I still be inside the rules. Out in the Garcia in a rare subdued tone of have a grasp of what operating voice, "versus an excellent one ocean, the varnish of society is worn people are doing. And the best way off and true personalities are thing. Whatever opportunities are to get that grasp is to be there a available, I want to take them all. revealed. The environment is a while." hard one, and everyone has to make But there's got to be a balance. it work. That experience taught me Think about when you're sixty or a lot about human relations." seventy, and say you've made it as a CEO. What else do you have to Since January, Olivier has been show for yourself? Is the company working full time and finishing his you worked for going to be the MBA in the evening program. He thing that keeps you warm in your conducts market research; provides old age? I mean, what's being old technical assistance to the sales without a family around? For me, departments, and does public life has to be more than a career." relations for a subsidiary of Renault For now, though, Carolina is called Industrial Development and concentrating on the career. After Procurement, Inc. (IDP). "One receiving her bachelor's degree advantage of going to school and from Case Western Reserve and her working," he says, "is that what master's degree from the University I'm learning at night is directly of Michigan, both in polymer applicable to what I do during the science and engineering, Carolina day. From my standpoint as a worked for General Electric as a foreigner, the most important development engineer, coordinating aspect of the MBA is the exposure the adhesives work on a new to many elements of business process for making halogen through the case method. In France headlights for cars. "At first I liked we are trained on a theoretical level, it," she says, "but after about two and strongly in mathematics. The years I noticed my motivation was case method compresses so much slipping. I finally figured out that material into a small time space I what I missed was interaction with feel it would take me ten years people. I was working with data and working on the job to get the equipment, and I wanted something broad perspective we get from this more people-oriented." teaching method. Americans are not At this point, it seemed a good

14 While working for Nippon Kikan, K.K., a steel making company in Tokyo, she was assigned to write a manual for foreign trainees about breaking the barriers of the Japanese culture. "Here I was," she says, "writing on culture shock adjustment while I was going through culture shock myself. Day after day you are inundated with signs you can't read and a language you don't understand. To communicate with someone and understand their way of thinking is the most important adjustment. I was communicating with dictionaries, so it was a hard step." Reflecting on her business school experience, Carolina says she feels the extracurricular opportunities are very important. "The pressures of homework and the day-to-day activities of class tend to cloud our vision sometimes of long term things that are important. Because you need to get a project done tomorrow you might not make time to sit in on a special lecture such as the Dean's Seminars where business people come in to talk informally with students, or company presentations given for students. But these kinds of lectures and discussions can sometimes give you a broader perspective on decisions you need to be making about your life." "Business school has changed me," says Carolina. "I still don't know specifically what I want to do with the rest of my life, because I have so many interests. But the difference between now and when I decision to go for her MBA. in human resource management, I'd had this problem years ago is that "I talked to a lot of people at GE be doing compensation and pension I'm more willing now to make a about where I should go — and plans. By starting out in strategic decision for only one or two years many people advised me to go to planning I feel I can learn about into the future rather than worry Michigan. I have felt I made the the industry I'm involved with, and needlessly about the next ten years. right decision every day of the what makes the company do what it Previously, I'd put pressure on week. The schoolwork has been does." a challenge. I have felt like I'm myself for the long term, and I Carolina's keen interest and lively thought that decisions were set for stretching. The MBA has been enthusiasm for different aspects of useful to open doors to me. The life. After being at the Business work resulted in her working on School, I'm more willing to admit degree has given me credibility in two jobs last summer. She had the business world, whereas without I'm going to change. There will applied for a business fellowship in always be different situations that the business skills, I'm pegged as an Japan last summer, and before she engineer and that's it." will cause me to have different heard whether or not she had been needs." Carolina's game plan is to start chosen for it, IBM offered her a her career in strategic planning and job. And then the fellowship came Carolina has accepted a job in then move to human resources. "I through. Carolina managed to take strategic planning with Standard Oil know it's the people issues that will both opportunities by working for of Ohio. keep my interest for a long time, IBM for two months, and then but I also know that if I started out going to Japan.

15 Jerry Davidson

B.A., Economics Boston University M.S., Urban Planning The University of Pittsburgh Work Experience: Urban and Regional Planning

"Sometimes I don't see that much difference between the craziness that goes on in business or that goes on in government. I think I am realistic about what to expect."

o make a transition from the Tpublic to the private sector — to retool, as he puts it, is Jerry Davidson's number one reason for getting the MBA. Jerry got his master's in urban and regional planning from the University of Pittsburgh in 1978, then worked as a planner in Boston, first for the was an exciting field, and I made a I have to be sensitive to systems, but employment and economic policy strong commitment to it. Now, the results are more obvious with administration of the city, and however, it has diminished business systems. In managing later as a housing management considerably in societal terms. If buildings we had to be sensitive to administrator for the Massachusetts you look in professional planning cost overruns and so forth, but we Bureau of Housing Management. journals people are advised were very political. You might get There he managed state-aided continually to retool because a call from some state legislator housing programs for 22 local everyone is afraid of budget cuts." saying, 'you better approve this housing authorities with total After making the decision to go community room furnishing or I budgets worth $2.7 million. "In for the MBA, Jerry, who was paying won't vote on particular legislation.' managing buildings," he says, "we his own way through school, chose Sometimes people are critical of ran very much like a business." Michigan because it had the most the public sector because they see it In 1980 Gerry became housing cost-effective MBA of the best as wasteful, but in the private development administrator for the quality. "I have found the sector, who knows how much Bureau of Housing Development experience very humbling," he says. money you're spending on of Massachusetts, and in that post "There's a tremendous amount advertising you don't need, or on he administered the planning and of information to absorb — the product development that doesn't development of 33 housing projects overload is awesome." Reflecting on work? Sometimes I don't see that worth $75 million. the difference between business and much difference between the However, when money for public the public sector, Jerry says, "I'm craziness that goes on in business or housing started to dry up, Jerry not sure they are all that different. that goes on in government. I think began to feel that it wasn't in his Business is a game with different I am realistic about what to expect." best interest to stay in the urban players and different goals, and Jerry has accepted a position planning field. "The field has been there is more opportunity there. doing management consulting with through a lot of changes," he says. I really like business — it's very Coopers & Lybrand in Boston. "When I was 22, urban planning stimulating. Being a planner means

16 The Computer as Pandora's Box

By Manfred Kochen Adjunct Professor of Computer and Information Systems

he idea that technology can take issue, but the film certainly makes generated more jobs than it Ton a life of its own has for a a point. displaced. But this technology is long time been a topic of popular Technologies advance in three so pervasive that it could — and fiction. Consider Mary Shelley's stages. In the first, they enable us to perhaps should — reduce the vision in Frankenstein: a man-created do what we have always done, the total demand for human labor, monster who takes on a life of his way we always did it, only cheaper, particularly work involving physical own and seeks revenge on his better, faster, and more reliably. In or mental drudgery, danger, creator for having produced the the case of computers, ones smaller routine dexterity, manual strength, monster which is himself, the and using less power must be great exactitude, or tiring tedium. horrific Doppelganger. More added. Parallel computers, It is the information industries currently science fiction offers networks, new graphic capabilities, themselves that are most vulnerable repeated motifs of technology- expert systems and means for the to these effects. These 29 industries, come-to-life. In Ray Bradbury's business executive to use the comprising banking, insurance, story, "And Gently Comes the computer directly, without an brokerage, marketing, schooling, Rain," we find a mechanized intermediary, are bringing us to this research and development, to name household functioning smoothly stage. In the second, they enable six, occupy well over half our labor even after a nuclear holocaust wipes us to do what we could never do force and over a third of our GNP. out every living thing on the planet. before. In the third, they change It is still the most rapidly growing No longer a topic limited to our lifestyles. Microcomputers in sector of the economy. According to fiction, the problem inherent in the telephone, in the car, inside the estimates by Machlup and Kagann, information technology received household's appliances and the in 1970 over 59% of the employed widespread attention when ubiquitous work station may lead knowledge workers were engaged Weizenbaum pointed out that the way. Our conception of what in transporting knowledge (e.g., modern computer systems, such it means to solve a problem is messengers), transforming it as those used for defense (with changing. We no longer need to (e.g., stenographers) or routinely hundreds of thousands of lines of specify to a computer how to solve processing knowledge (e.g., code), have attained a complexity a problem. It suffices to tell it bookkeepers). Even though in 1970 that is beyond the capacity of any in English-like terms what the knowledge workers were only 43% one designer to comprehend in full problem is. of all workers, these three functions and which very probably contains An insidious and dramatic way in (which are readily automated) undetected errors. To what extent which technologies for information accounted for 25% of the total U.S. can we control such complex and control can change our labor force. Indeed, OECD had computer-based systems? To what lifestyles is the prospect of estimated in 1980 that 33% of the extent are we at the mercy of structural unemployment. For the labor costs in banking and insurance technological imperatives that could first time in history this may take could be "saved" by the end of the shape our lives? We need not go to on a new aspect. In the past, the decade. Protection of jobs is a the extremes dramatized by the film displacing technology has usually reactive response to this possibility "War Games" to appreciate the rather than a proactive plan that

17 would indicate our being in control side effects and opportunity costs. sales of narcotics alone amounted to of the situation. We may or may not feel that, on $79 billion that year in the U.S., We can adopt one of at least balance, we are ahead. And it may may become vastly more productive three attitudes to face these be too difficult and too costly to with the help of computers. changes. The first is passive. We change unanticipated procedures. Technological fixes will not lessen wait until the dust settles and then There is no guarantee that if computer crime; fresh approaches adapt. Hopefully hindsight may give everyone acts in his own are especially needed to avoid this us a clearer picture of what to adapt self-interest, the long-run disaster. to and experiential wisdom and consequences will be lifestyles Government regulation has learning may have taught us how valued by most and regretted played a limited role. Unlike the to adapt. The second attitude is to by few. Japanese, who are actively shaping forecast and anticipate the changed Control of technology therefore their information society with a situation. This gives us lead time requires planning; not centralized coordinated government-industry for advance preparation. But it planning, but design of enough effort, we are relying on individual involves uncertainty and risk, even checks, balances, and provisions for initiatives. These are still serving us though if we choose well (are lucky detecting, correcting and learning well, but with increased complexity but appear wise in retrospect) those from unavoidable errors, and of this field more is left to chance. uncertainties and risks may appear preventing non-correctable Congress, however, now counts a ephemeral. We may avoid dead mistakes. Both planning and computer scientist, Rep. Ed Zschau, ends, possibly irreversible ones. management of technology are among its ranks. The third attitude is to target the likely to be the responsibility of Office automation beyond word lifestyles we want and to shape persons in an organization who processing, electronic spreadsheets changes toward these goals. This already have a power base and who and electronic mail has yet to make takes considerable courage and seek to increase it. Insofar as such its full impact on management, with confidence. We control the persons decide that everyone in the time management, decision-support technology if we have a clear vision firm uses a work station, electronic and expert systems yet to come. of what we want, the political will to mail over a local area net, etc., the Office managers have yet to cope realize it, the necessary economic end-users are no longer free to with the proliferation of desktop resources and the know-how. To express their discontent with the units. The use of on-line planning the extent that we do not mobilize system by not paying for its use; for strategic planning, wherein these four factors, we are controlled they may not use it, but it is already the player can set psychological by the momentum of technology paid for. If such power-seekers parameters of simulated players and must remain uncertain about place their own ambitions before (competitors), may someday do for the human values in our future. the good of the firm or cease to be executives what VISICALC does for The free market is a major responsive to end-users' needs, they middle-level administrators. We may control mechanism. If we don't will either be replaced or bring the well find ourselves in an office of want a certain item, then we don't firm to ruin. the future in which computerized buy it. If our experience with At present, there is considerable knowledge bases store so much computer conferencing overwhelms emphasis during system design of the consensual, combined us with inputs of marginal value to build in adequate controls to knowledge of experts and the latest that require us to spend more prevent abuse or breakdown. The research findings suitably evaluated, time in scanning them than we thirty years of experience in screened and integrated to leave us would otherwise have spent, we managing the development of not daring to question the computer will not use it. But technologists computing services in firms, with system. We may come to question are increasingly aware that it is the well-known four stages of cost our role in managing our affairs human factors, not the hardware reduction (e.g., payroll, billing, and yearn for a return of human or software, that make their accounting programs), expansion involvement. We may find ourselves services unacceptable. Driven by (proliferation of applications with entrapped in an office of the future self-interest, they are likely to out-of-control cost overruns), in a way similar to that depicted by improve their services until they formalizations (attempts to control, Charles Chaplin in the 1930s for are more widely accepted. halt spending), and maturity (sober what was then the factory of the Consequently, we may find use, database systems, etc.), has future. We must not lose control. computer conferencing, for led to tighter control of the On the whole, our lifestyles have example, useful for the way it development cycle and greater changed, but not yet dramatically increases our productivity and accountability for computer systems. because of computers. A switch reduces some costs. We may This has led to efficiency gains in from passive TV watching to unwittingly come to adopt new some industries but not in others, videogames is popular, but procedures that both we and the such as health care. The highly harmless. In the office, the technologists failed to anticipate. profitable crime industry, for computer has become a useful We will then evaluate these new which, according to the Narcotics scapegoat for the frustrations of procedures balanced against their Intelligence Estimate for 1980, retail work being held up by equipment

18 "This problem has been my life's work. I planned to devote my remaining years to it. It's just been solved in four seconds."

19 being down, poor documentation man-machine interfaces a means or lack of fluency in the use of by which the user selects and technology. "The fusion of three high fine-tunes the degree to which he The major change in lifestyle is technology fields ported wants the system to induce him to comply with the directives he yet to come, and soon. It is likely new kinds of power. It is as to come to our notice after it has programmed into it, as in the case insidiously grown for some time, if we might experience a of time management. We can catching most of us unprepared. million times the impact of support basic research into the key Some fantastic examples will make Pearl Harbor but with less issues relating to control: how to the point. In the 1960s, Delgado at replace power by authority; how Yale had shown that a charging, preparation." people form a consensual image of raging bull could be stopped dead an information society according to in his tracks and compelled to lie human values; how to keep such down peacefully by a radioed signal an image in perspective with top to an electrode implanted in one or Hiroshima but with less priority; how to create and nurture of four regions in his brain, where preparation. the autopoietic process that electrical stimulation reduces rage. Is control possible? If so, how maintains the checks, balances, and He ceased this research because of can we control computers? What self-regulating information flows. its social implications and the ethical are the limits to our control? If Control is an emotionally charged issues it raised. Adam Reed, microcomputers, like pocket concept. Too much of it, too rigidly working on prostheses for the blind, radios, are owned by most people, or tightly exerted, evokes images of fantasized about a microcomputer by interconnecting them with tyranny and totalitarianism. Too implanted in a person's brain; all-pervasive networks, we could little of it, with lax, undisciplined, he envisioned the possibility of develop new forms of participatory inconsistent or weak exertion evokes progress on some very profound governance, new opportunities for fears of loss of control. False software problems to the point business, unprecedented means of dichotomies and false questions may where a person need merely think continuing education. The vision of mislead; for example, would we he wanted to know the product new societal organs analogous to rather be controlled by technologies of 879 and 577 and the answer the nervous system and brain of developing on courses of their would be signalled back through an individual is not far-fetched. own, uncontrolled by us — or by appropriate neurons. He felt in Whether this emerging societal powerful groups of men who 1960 that this could be possible in information network will evolve into control technology as well as us for 50 years, and that it would take that something that serves society with their own ends? These are not the long for society to be ready. Indeed, higher mental functions the way a only two options, nor necessarily current work on biomolecular brain becomes mind for a person, the most viable ones. electronics (e.g., by EMV Associates, or whether it will turn into an We can and should take steps Inc., which may form a limited Orwellian 1984 nightmare, is to to control the development of partnership with E. F. Hutton) is some extent up to us. Control technology by assessing very counting on some breaks so that in is possible, for denial of that carefully our specific needs for five years a "moletron" or biochip possibility implies that we could not technology in our jobs, by imagining would replace the transistor. The halt research and development in exactly and realistically how we idea is to fabricate an amino acid these technologies. But this was would like to use it and what we chain that will assemble itself, shown by Delgado; similarly, the expect it to do for us. We need to using recombinant DNA and moratorium on recombinant DNA imagine as vividly as possible the immunological techniques. Some research which research biologists at likely consequences and whether we believe that the resulting biochips Asilomar imposed on themselves would like them. Only then should would be a billion times more indicates self-restraint. we embark on the acquisition of powerful than today's silicon chips, hardware, software and the design We can control computers and 100 million times faster, much of procedures for using computer related technologies in several ways. smaller, generate no heat, and could services. As many of us consider We can ensure that the consultants be grafted into the nervous system acquiring personal computers we who staff information centers, of a person. Modern biotechnology must resist the temptation to buy which are probably the most viable is increasingly information-intensive, hardware and software without organizational structures for helping and the fusion of three high- first thinking through clearly and business professionals indirectly technology (computers, in detail how we will use them and using computers at work stations, communications, molecular biology) what they will do for us. We may are humanistically oriented and fields portends new kinds of power come to regret assuming that we liberally educated, in addition to at an unprecedented level. It is as can best do that later, when we have their expertise in business and if we might experience a million experience and a clearer idea of technology. We can design into times the impact of Pearl Harbor what we can do with the system.

20 t^^of^ Jul i/U/& S § »e AVM-A^XM. $"*r « CI* y18t%M/B8i/$/%s BJS €•«$ S/€M/9^swl/ C#f hl&t%Z %t%M/8 G£%£&&' C/€,C^C^ffC™Oc4/#^C^C*' Insurance company in America?, also wields considerable political clout.

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by Linda Benson

pon receiving his MBA in in countless voter registration U actuarial science from the U-M drives; sitting on the State of in 1949, Jesse Hill, Jr. boarded a Georgia's Board of Regents; or train headed for Atlanta, Georgia — attending meetings of the board of not necessarily the most inviting directors of companies such as Delta location for a young, talented, Airlines, Morse Shoe Company, ambitious black man with a degree Knight Ridder Newspapers, from a northern university. Communications Satellite Furthermore, the job he had Corporation, Trust Company of accepted with Atlanta Life Georgia Bank, National Service Insurance Company offered him Industries . . . the list seems endless. the lowest starting salary of any that In fact there is hardly an area of had recruited him, and that contemporary political and included the New England "giants." economic life that Hill hasn't But Hill saw a different set of touched and contributed to, circumstances. To him the offer nationally as well as in Georgia, in from Atlanta Life afforded the best the white community as well as the opportunity to grow and move up black one. within the ranks, and Atlanta's black "I never resisted coming to the business community, which included South," Hill says of those days a black-owned bank, held a vibrant immediately after graduating from fascination to him compared to the the Business School. "Atlanta always slower tempo of other southern seemed a beacon to me. I never cities. wanted New York or California. Jesse Hill, Jr. Thirty-four years later Hill is still I had admired what blacks had with Atlanta Life — he has never accomplished here in terms of had any other employer — only the U.S. Army during the Korean business development and black now he is the company's president. War, Hill has lived continuously in pride." And the company is thriving. It Atlanta. That is, when he has not It was not a case of random presently does business in 12 been dining at the White House selection. Hill had a chance to states and serves nearly 585,000 with his wife as personal friends observe and compare Atlanta to policyholders with more than of Jimmy and Rosalynn Carter; many other cities while planning $1.6 billion of insurance in force. stumping in Carter's presidential his future. As an undergraduate The company's capital and surplus campaign as part of the Peanut attending Lincoln University in is $26,125,000, making it the largest Brigade; participating in the Poor Jefferson City, Missouri. Hill was from the standpoint of net worth of People's March with Martin Luther business manager of the track, any black-owned and controlled King, Jr. or Operation Breadbasket basketball, and football teams. "I business in America. with Jesse Jackson in Chicago; think I weighed 100 pounds Outside of a two-year stint in circling the rural areas of Georgia dripping wet," he says of his

21 appearance which is still slight and springy at age 57. "But we traveled to all of the major cities in the South, and none was like Atlanta." Raised by his mother and his grandfather, Hill got his first business education in the streets of St. Louis. "I consider my grandfather the smartest man I've ever known. He was a peddler and I would accompany him. We sold ice and watermelons in the summer, and wood-burning stoves in the winter. You had to sell your ice before noon or it was gone. If you didn't have business acumen you were sunk. My mother worked for the Pullman Company, laundering sheets for the sleeping cars." When Hill was around 12 or 13, old enough to develop his own business enterprises, he retrieved the copper fittings from discarded light bulbs as well as bottles and cardboard from the dump site of *?&• the local Monsanto Chemical Plant to sell for scrap. "It was one of my most lucrative jobs," he says recalling that time. "We all worked hard, but my grandfather and mother both believed that there Atlanta Life's new five-story, six-level headquarters building is another marker was dignity in hard work. It was of the company's stability. It cost $10 million and was paid for in full by the time a joyful time." the building was dedicated in July, 1980. As a college student, Hill knew that he wanted to work in the insurance business, and he was of illness and death, but at the same connections in the white community interested in mathematics as well. time had very little if any extra and was able to put up the $5,000. A strong friendship with one of his money to set aside for emergencies. He purchased the Society for $140, professors gave him the necessary To fill the need for sickness and and established himself as its encouragement and direction to burial insurance, many president. seek a graduate degree, and U-M church-affiliated benevolent The company grew rapidly. By was one of only two that were associations sprang up. the end of 1905, it had its own offering MBAs in actuarial science Atlanta Life began as the building and sales in several then, the other being the University Atlanta Benevolent and Protective Georgia cities of nearly $181,000 of Manitoba. After graduation, Association — one of those representing more than 6,300 Hill chose to work for Atlanta Life church-affiliated organizations policies in force. Many of these primarily because of its founder, that were formed to fill a practical policies were industrial or Alonzo Herndon, a former Georgia need in the community. But w?hen home-service insurance, which slave. "His was such a wonderful the State of Georgia passed a law provided sickness benefits of a few success story," he says. in 1905 stating that such groups dollars a week or $500 worth of That success story began at the needed a $5,000 surety deposit death benefits to low income blacks turn of the century in Atlanta's to stay in existence, the two black for whom Atlanta Life and similar bustling black business community ministers in charge of the Atlanta firms provided the only economic along Auburn Avenue (nicknamed Benevolent and Protection safety-net in times of crisis. The "Sweet Auburn"). Atlanta's black Association knew they could not premiums were small and collected population was growing rapidly, as comply with the new law. In an by agents oh a weekly or monthly people from rural areas migrated effort to keep the Association within basis. The growing network of to the city. Low paying jobs and the black community, they offered it agents in the field were frequently poor living conditions meant that to Alonzo Herndon, who owned boarded by their policyholders many of these newcomers were three barbershops in downtown when they made their weekly confronted not only with high rates Atlanta. He had many friends and collections.

22 By 1922 the company had As Hill rose through the ranks training new employees with sales increased its capital stock to of Atlanta Life, eventually to vice and executive potential." $100,000 and was renamed Atlanta president and chief actuary, his Hill has developed a personal Life Insurance Company. At that performance was followed closely by style of restraint and an ability to time, the firm began to offer President Herndon. When Herndon communicate across economic and ordinary life policies, and opened retired in 1973 he chose Hill to racial lines that has brought him branches in several new states. succeed him. The board approved numerous requests to use his Alonzo Herndon died in 1927, Hill's appointment as president, energies in various civic, political, and the presidency passed to his chief executive officer, and and business posts. "Sometimes son, Norris, an alumnus of Atlanta chairman of the executive people call me up and speak like I University and the Harvard committee. "If I had to say what am a social worker or on the staff of Graduate School of Business. was the greatest thing that has the Urban League or the NAACP," Under his direction, the company happened to me from the says Hill. "I am not annoyed by expanded into 11 states in the standpoint of my career, it was it, but sometimes you lose your South and Midwest, and by 1950 the confidence Mr. Herndon put identity as a businessman. People listed assets of $23.9 million. Shy, in me," Hill says today. don't realize I have a full time retiring, and unmarried, Norris According to an article on Hill job, too." Herndon was reputed to be the published in the June 1982 issue of Hill was the first black to serve richest black businessman in Black Enterprise, the black insurance on Georgia's Board of Regents, the America, and he began contributing business is undergoing tremendous first black on the board of directors extensive sums of his wealth, change. "In the 1970s, large white for Rich's, Inc. department store anonymously, to the betterment of firms were actively recruiting black chain, and the first black to become black political and economic life. agents and office personnel and president of the Atlanta Chamber By the time Jesse Hill arrived in carving up a consumer market that of Commerce. He has also given his Atlanta, when the decade of the once had belonged almost entirely abundant energy to political causes. 1950s was just beginning, it would to black insurers," says the article. In the late 1960s, through his be hard to live or work along "Atlanta Life responded to the work on voter registration, Hill "Sweet Auburn" and not be challenge by expanding its made the acquaintance of Jimmy caught up in the activism that was operations into a total of 12 states Carter. In 1974, two years before beginning to stir. Ebenezer Baptist and merging with several other Carter's term as Governor of Church, with the moving oratory black companies." The magazine Georgia was over, Carter invited of Martin Luther King, Sr. (Daddy quotes Hill as saying that the Hill, along with 11 other carefully King) and his son, Martin Luther company's marketing strategy for selected Georgians of influence and King, Jr. was a vital force in the the 1980s should be to conserve a prominence, to his home to discuss black community and located just significant part of the home-service strategy for Carter's election to a few blocks away from Atlanta insurance market where the need presidency of the United States. Life's headquarters. During that exists, but 'we have to go for a "Mainly, Carter appealed to us for decade Atlanta Life became greater market share of the growing contributions and contacts," says involved in the Civil Rights black middle class business while Hill. "He had a well thought out Movement, contributing tens trying to capture a bigger part of plan, and the more you listened to of thousands of dollars to the total market.' " him the more impressive he organizations in the vanguard The article continues, "Part of became." of the Movement. the company's thrust to expand and Hill came on board, joined shortly In the 1960s, when many black capture a greater share of the total thereafter by his good friend from churches were closed to civil rights insurance market should involve the Martin Luther King days, meetings throughout the South the maintenance of a staff or Andrew Young. Hill not only because of intimidation and threats, well-trained and versatile agents in provided money and connections Atlanta Life offices were frequently the field, Hill believes. 'The growth but time and effort traveling substituted. Hill too, became and development of this company around the country in the "Peanut involved, principally in voter is going to be on the backs and Brigade." registration. For almost ten years shoulders of the rank-and-file When Jimmy Carter was elected he served as chairman of the agents,' he says. He worries, president, he offered Hill a cabinet All-Citizens Registration Committee however, that as older, proven post in his administration, but Hill in Georgia. "We raised more new agents retire, the company won't declined. "I see my most effective voters than any other state in the be able to attract new people of role to America and to the South," Hill says. "We helped elect the same caliber. president as a private-sector progressive candidates like Mayor "To attract and train good agents, businessman," he was quoted as Allen over Lester Maddox, and we Hill initiated an in-service training saying at that time. worked for the election of the first program known as the Career Sales Hill still keeps in touch with black state senator, Leroy Johnson. and Management Academy for Jimmy Carter, and both are It was a new era." Selected Business Majors. Begun six working for Carter's former years ago, the academy is devoted to Continued on page 44

23 A beloved teacher and premier accounting theorist gives us a delightful and very personal book

ords are man's greatest tool," writes William A. Paton in his newest book. "Words are the essential constitutents, the building blocks, of both language and thought. Words are the basic means of moving men's minds. Words, and the impressions and attitudes associated with and resulting from their use, literally rule the world." The book, Words! Combining Fun and Learning, is both a culmination and a radical departure for Professor Paton, whose publications have virtually revolutionized the accounting field. His delight in learning, transmitted through an extraordinary intellect, has infused thousands of lives with a love of learning. His newest book, published by our Division of Research, combines his special observations on language with a lifetime's treasure of challenging word games, compiled over the years and reflecting his long-time keen interest in the English language, as a reader, teacher, and writer. In his introductory chapter, Paton writes, "The relation of word mastery to individual progress and performance deserves some attention. I was much impressed with the results of a study made about seventy years ago, and reported, as I recall, in the Atlantic Monthly (then considered by many to be the country's outstanding Professor Paton hopes his hook may be helpful to those who are trying to teach literary magazine). The objective children or grandchildren at home, in an effort to offset the lack of good of the inquiry was to determine instruction in many schools these days. Dr. Rudolf Flesck, author of the bestseller the key or keys to success in "Why Johnny Can't Read" and the recent "Why Johnny Still Can't Read," has strongly endorsed the book.

24 administering business under­ Some years after he had left my paper, can be started — and takings, and the means used was a classes one of my students w?as stopped — in a jiffy, can be used to close scrutiny of the traits, habits, advanced to the chairmanship — while away some time when nothing training, and experiences of several the top executive post — of one more serious is demanding hundred executives widely of the world's largest industrial attention, or provide a bit of recognized as having attained corporations. I was away from home diversion and relaxation — a break notable success. Both interviews and on a consulting job at the time but — in the midst of some exacting written inquiries were employed in one of the interested daily papers and tiring work. Such play can be making the study. The list included ran me down, by phone, in the enjoyed at the office, on the plane, leaders from all major business middle of the night, wanting a at home, and some forms can be fields, and embraced many men statement regarding this man's puttered with, as a mild mental with no college background performance in his university days. exercise, while in bed, as a whatever and not a few with little I was glad to respond, and I substitute for counting sheep. precollege schooling. (The survey remember stressing two factors: Indeed, I have hit upon some of my was made back in the days before (1) his persistent determination to best "conversions" when half-asleep. the country became obsessed with excel, and (2) his command over "But there is plenty of evidence the idea that everybody should words — his exceptional vocabulary that more than fun is involved in go through "high school" and, for a youngster in college, and his playing with words. I'm convinced preferably, continue on to a college skill in expressing himself in both that pursuing this form of or university degree.) As would be writing and speaking. amusement will improve one's expected the study disclosed a great "In this book, I propose to outline spelling, build up knowledge of diversity among the group some of the ways in which one can shades of meaning, promote better covered as to ancestry, physical have fun with words, play with pronunciation, and expand the characteristics, early home life, and words. There are many kinds of working vocabulary. so on. But there was one attribute simple word play that require no "In short, while the writer's or quality that was conspicuously equipment other than pencil and immediate objective is encouraging shared: superior vocabulary. Almost to the lighter side of an interest a man these executives knew words in words he also has in view and how to use them. And when Our article offers some stimulation of a serious concern the group was broken down into delicious tidbits. For the (till with words and their sound and those with formal education beyond nourishing meal, we invite you effective use in writing and speech. high school and those without to order the book itself, which Strengthening word power, college or university training there is available to BhMetid readers assuredly, is a worth-while goal was no change; the "uneducated" at a discount. As a special for all of us." subgroup showed almost exactly the ixmujs each copy ordered Having argued persuasively that same vocabulary rating as their with this coupon will be mastery over words is an important brethren with advanced educational autographed by Professor and even essential ingredient of background. Patau, success, Paton plunges into the "In fifty-five years of teaching, Please send — copies of various puzzles that he has collected all at the university or college level, W <"> EDS! at the discounted for our delight and edification. I have had contacts with at least price of $10.00 each (regular They are divided into chapters 20,000 students, and with about price is $i 2.00) $ according to different types of 10% of this number I became quite Michigan residents puzzles, and the first of these well acquainted (through advanced add 4% sales tax $ is conversion. This involves classes, consultation, helping them Total $ .™™.™_ rearranging all the letters of a key find positions) and in the case of word into one or more other words. perhaps half of this smaller group I D Payment enclosed Here is a rhyming puzzle using a have followed their careers closely Q Bill me D Bill my firm seven letter word that can be ever since they left school. I have converted to three other seven letter made no systematic study of the words. (Answer on page 26.) Fi rni: „„ , personal aptitudes and characteris­ When Daddy-O in deep tics of the many who have done Street Address: ,_—~~~~~~—.~~. Puts baby Bill flat in a chair, exceptionally well in professional And then in spite of yells and kicks and administrative posts, but I have Proceeds his to fix. City State Zip noticed, in not a few cases, that Smart wife complains, though very those who have made the top flight, (Orders should !*e sent to tired, reached the pinnacle in their The Division of Research, "To that you should not have enterprises, are men well fortified School of Business with words and proficient in their Administration, University of But Grandma, coming in amazed, use. It will offend no one now if I Michigan. Arm Arbor, Declares that Daddy should be refer to a conspicuous instance. Michigan 48!<*M234)

25 Another type of word game involves progression. The game consists of making a series of words, beginning with a word of one or two letters, and adding one letter at a time until a word of nine or ten letters is reached. There is no fixed letter length to be aimed at, but experience shows that a ten-letter word is the practical limit. Here is an example prepared by Paton. (Answers at bottom of this page.) The Mason's Confession "_ hid in the on the home: the metal with which I killed the My got him, following his blow with one of my , before he could his improvised weapon as I had mine." Paton also provides lists of word progressions around which a story can be built. Here is one such list as Professor Paion and Professor Wilbur K. Pierpont enjoy a joke. Now nearing an example: a, at, rat, part, prate, age 95, Paton says he is bothered by failing eyesight and other limitations, but he prates, pasture, raptures, apertures, still shows up a couple of days a week in his office in the William A. Paton departures. Variations on word Center for Accounting Education and Research. progression include eliminating one letter from a word and still having a valid word left (i.e., swarm, warm, which 38 words have been arm) or eliminating the last letter of prize for the most words to be extracted; corporation (50 words) and a word to produce another word found in YIO Grapenuts. (Why the three extra letters were added to handsomely (70 words). (i.e., pale, pal, pa). the nine letters of the name of a The book continues through In his chapter on word square particular brand of breakfast food a chapter on sayings, one on patterns, Paton starts us with two one could only conjecture.) Several classification and association, and and three letter word squares, and lesser money awards were also another on assorted puzzles, games progresses up through six letter provided for. Somehow I let my and rhymes. Here Paton treats us squares. A word square consists of a enthusiasm for words trap me into to some of the results of what he series of words that read the same entering the contest, and I spent calls an attack of limerickitis that across as they do down. For many hours with an unabridged afflicted him some years ago. ("All example: Webster compiling a list from the honest pursuits I've forsaken / And AGO SPRY twelve letters available. With nearly to limerick writing I've taken. / But GAD PLEA half of the alphabet to work with sad to narrate, / Working early and ODD REAR there were of course many late, / I have thus far not brought YARN thousands of component words. home the bacon.") To help those of us who would The sheets containing my For all who have loved William A. like to work with word squares, but completed list, as I recall it, made Paton, or who have benefited from don't want to start from scratch, up a package of such bulk that his life's work, and for those who Paton includes in this chapter lists I decided to ship it by express. love words, this delightful and very of words that lend themselves to Although I watched the papers personal volume will be a treasure. squaring. At the end of his chapter carefully for months I never saw As a special bonus for Dividend on word squares, he includes a cross an announcement of winners, and readers, Paton has promised to word puzzle of his own devising. I never received a penny for my autograph all copies ordered with Another chapter of the book efforts. If anyone compiled a longer the special Dividend coupon printed describes decomposition, word list than I did he must have had a above. games played by seeing how many- bigger dictionary than mine. Never since have I let myself be beguiled Answers: DESPAIR, DIAPERS, words can be made from a given ASPIRED, PRAISED. word. In the introduction to the into such a time-consuming venture." chapter, Paton says, "I remember Answers to The Mason's Confession: when a major company making A few of the words listed in the I, it, pit, trip, strip, priest, riposte, packaged cereals offered a big cash chapter include compendium, from pointers, interpose, interposed.

26 An informal collection of items, including news of the faculty, of alumni, and of the school, and assorted other information, opinion or comment that we think will interest you.

Three New Joint Degree said one student, adding, "Most of Programs Approved all though, his class was so enjoyable I really learned statistics." "He is Three new joint degree programs concerned with each individual have been approved, bringing to student," said another, "and will eight the number of joint MBA actively seek out a student whose programs that are possible at The performance is slipping." Other University of Michigan. New joint comments included Spivey's degrees are: business administration willingness to field any and all and hospital administration; questions raised during class, his business administration and social beautifully organized lectures, work; and business administration his ability to go beyond statistics and Near Eastern and North to explain its applications and African Studies. Each program is limitations. "I hated to miss a class," arranged so that all requirements said one student. "An incredible for both degrees can be completed person and professor. Period," in three years of enrollment. said another. Students interested in any of the Professor Spivey received his joint programs must apply to and ••id&x. A.B., M.A., and Ph.D. degrees from be admitted by both schools, using Professor Spivey the University of North Carolina their respective application forms before coming to the Business and indicating that application is School in 1956. He has taught at being made to the joint program. Kyoto and Doshisha Universities The combined degree programs W. A. Spivey Receives Outstanding Teacher Award in Japan, The London School of are not open to any students who Economics and Harvard University. already have the MBA, the MSW, "Professor Spivey is one of those In addition, he has served as the MHSA, or the MA in Modern very rare professionals who rates associate vice president for academic Near Eastern and North African among the top 1 % on the research affairs at The University of Studies. However, first year side of business statistics as well Michigan, has published numerous students in any of the programs as being perhaps the most lucid, articles in major business journals may apply for a joint degree entertaining, and effective teacher and holds offices in several program. of a seemingly cut and dried, dull professional associations. These three new joint degree subject," wrote one student in Selection of the 1984 Teaching programs add to the growing nominating W. A. Spivey, Clare E. Excellence Award, based on student interaction between the Business Griffin Distinguished Professor nominations, students' comments School and other centers of of Business Administration and and course evaluation scores, was excellence on this campus. Already Professor of Statistics, for the third made by a four member Teaching existing joint degree programs are: annual Teaching Excellence Award. Evaluation Committee. Nominees business administration and law; Professor Spivey received the award must have been teaching at the business administration and music; at the Business School Recognition University for five years. Spivey's business administration and Asian Exercises April 28 at Crisler Arena. name will join those of previous studies; business administration Over and over, students award recipients, C. K. Prahalad, and public studies; and business nominating Spivey talked about the professor of policy and control administration and architecture. care he shows for students, and his (1983) and George D. Cameron III, More information on any of wonderful sense of timing in class. professor of business law (1982), these programs may be obtained "His ability to sense when the class on the Teaching Excellence Plaque from the Business School's Office of is fading in their attention and located in the Office of Admissions Admissions and Student Services. bring them back to reality with a and Student Services at the Business witty remark or story is terrific," School.

27 Anneke de Bruye Overseth IBROM & Michigan Dept. of obtaining funding for the Michigan Promoted to Assistant Dean Commerce Take a Look at study, "these issues are of direct policy relevance if Michigan is to Anneke de Bruyn Overseth, Credit to Small Business encourage the development and director of development and A study examining credit flows growth of small businesses." external relations at the Business from various sources to the small IBROM is a unit of the U-M School, has been named assistant business sector of the economy, and School of Business Administration. dean for development and external the terms on which such credit is relations at the School. available, is being jointly sponsored Her new appointment, effective by the Independent Business Three Accountants of the May 1, was approved by the U-M Research Office of Michigan Year Named by Beta Alpha Regents at their April 19-20 (IBROM), a unit of the Business Psi Chapter meeting. School, and the Michigan "This appointment results from Department of Commerce. Three alumni of the Business a reorganization in the School's The Michigan study is an add­ School have been chosen as Dean's Office due to Associate Dean on to research currently under "Accountants of the Year" in William G. Holler's desire to return contract to the U.S. Small Business industry, public accounting, and to full-time teaching and research," Administration. The national education respectively by the Ann Dean Gilbert R. Whitaker, Jr. said. study is a pilot, intended to lay Arbor chapter of Beta Alpha Psi "Instead of replacing him directly, the foundation for annual data Accounting Honorary. They are, we have reassigned his duties to a collections and to monitor the John R. Edman, BBA '50, MBA '51, number of different individuals financing of small and new vice president of General Motors including Anneke Overseth. businesses across the United States. Corporation; Arthur M. Friedman, BBA '57, managing director of "As assistant dean, she will Ann Thomas, assistant professor Arthur Andersen & Co.'s tax oversee the development, alumni of business economics at the practice in the U.S. and Pacific relations, Alumni Fund, Corporate business school and faculty associate Basin; and Sidney Davidson, MBA Associates, publications, and at the Institute for Social Research, '41, Ph.D. '50, Arthur Young placement activities of the School. and Muriel Converse and John Professor of Accounting at the Additionally, she will serve with the Jackson of the Institute for Social University of Chicago. The associate deans as a member of the Research, are directing both the Outstanding Alumni Awards were Administrative Committee of the national study and the Michigan presented at Beta Alpha Psi's spring School." supplement. banquet. Overseth joined the U-M staff The Michigan research will use in 1971 and has served in such the questionnaire designed for the Edman, who joined GM in 1951, capacities as director of the capital national study to obtain information has served in a variety of divisional campaign for the Power Center, from a sample of state firms in the and corporate positions, including manager of the Cultural metal working machinery and the comptrollerships of Packard Development Program, and assistant equipment classification; 95 percent Electric, GM of Canada, and AC director of development and of Michigan's auto suppliers are in Spark Plug divisions. In 1974 he executive secretary to the Presidents this category. became assistant comptroller of GM's corporate financial staff and Club. In 1979, she was named The research will enable "some in 1975 was elected treasurer of director of development at the conclusions to be drawn regarding the Corporation, a post he held School of Business Administration credit practices in Michigan as until he received his current and was promoted to director of compared to the nation as a whole," Vice-President appointment in development and external relations. the researchers say. It will also 1978. Edman is president of the In addition to her professional provide Michigan with two types Financial Executives Research activities, she has been active with of information: where and at what Foundation and a member of the many local organizations. She has terms companies in this industry are national board of directors and served as chairman of the Special obtaining funds, and what funding executive committee of the Financial Events Committee for St. Joseph problems they have faced. Executives Institute. From 1978 to Mercy Hospital, as a member of the Based on information supplied board of directors for Poetry Ann 1982, he was an active member of by the Michigan Business the Financial Accounting Standards Arbor and the Washtenaw County Ombudsman's Office and a number League for Planned Parenthood, Advisory Committee. He presently of business associations, credit serves as the General Chairman and as a member of the Citizen availability is a primary concern Advisory Committee to the of the Steering Committee and of many of Michigan's small Chairman of the Executive Washtenaw County Juvenile Court. businesses, the researchers note. She received a B.A. degree from Committee for the Business School's According to state Rep. Maxine Capital Campaign. He is a member the University of Chicago, followed Berman, who was instrumental in by graduate studies at Brown of the University's President's Club University.

28 and serves as the Southeastern establish the Institute of The important human element Michigan Area Co-chairman of the Professional Accounting at the and organizational dimensions of Campaign for Michigan (a capital school, and was its director until project management are examined campaign for the entire University). mid-1969 when he became dean of through discussions and exercises of Friedman joined Arthur the school. He served as dean until effective teamwork, communication, Andersen in 1957 as an audit staff June 1974. During the 1974-75 time-use management, proper person in Chicago, Illinois. He academic year he was on leave as a delegation, and control. worked in the Chicago tax practice Fellow of the Center for Advanced from 1959 until he became a Study in the Behavioral Sciences. partner in 1968. Since becoming a He lectured at several universities in Fifth Growth Capital partner, he has served as Arthur 1979-80 as the Beta Gamma Sigma Symposium Presented Andersen's partner in charge of Distinguished Scholar. He is the the Cleveland and Los Angeles tax author or editor of fourteen books Growth Capital 1984, the fifth divisions, until he assumed his and a large number of articles and annual symposium on investment present position in 1980. As a reviews in journals on accounting, and financing opportunities, took managing director, Friedman has economics, and finance. Davidson place in April under the joint overall responsibility for quality is a member of the Phi Beta Kappa sponsorship of the Business School control and practice direction for and Beta Gamma Sigma honorary and the Industrial Development the U.S. Arthur Andersen & Co. societies, and is listed in Who's Division of the U-M Institute of offices west of the Mississippi Who in America and several other Science and Technology in River (plus Detroit, Milwaukee, distinguished directories. He cooperation with the Michigan Minneapolis, and Tennessee offices serves as a member of the Board Venture Capital Forum, the and the tax divisions in the Pacific of Directors of four Fortune Michigan Growth Capital Founda­ Basin). Friedman's areas of 500 corporations and three other tion, and the U-M Extension specialization include corporate corporations; he is chairman of the Service. reorganizations and the banking audit committee of six of those Sessions featured presentations by industry. He is a member of Arthur corporations. entrepreneurs who have successfully Andersen's Board of Partners. developed growth companies, and commentaries on market conditions. Friedman has been active in Seminar in Project Symposium director David J. the American Institute of Certified Brophy, associate professor of Public Accountants for more than a Management Offered by finance at the Business School, decade and is presently a member Executive Education notes that the event has become a of their Federal Tax Division, focal point for those interested in Chairman of the Tax Policy A program designed to improve both the technical controls and investment in emerging growth Subcommittee, and a member of companies. the Executive Committee. From people management skills of project "In 1980 and 1981," he recalls, 1978 to 1980, he was an instructor managers is scheduled for Sept. 5-7; "we were able to present first four for the joint University of November 26-28 and March 20-22 and then 10 good young companies. Michigan/AICPA Tax Program. by Management Education. In 1982 and 1983 we presented As a part of this program, he has This program will benefit 18 each year. Of the 50 companies taught corporate reorganizations to business and government managers which have made Growth Capital more than 400 CPAs from around and staff members who have Symposium presentations, 35 have the country. He is a member of recently been made project raised nearly $70 million through the University President's Club and managers or assigned to project venture capital firms, individual the Alumni Club of Chicago teams, as well as finance, and institutional investment, and and Cleveland. He has supported production, marketing, data public stock issues. Investors from the William A. Paton Center for processing, or accounting personnel Michigan and other parts of the Education and Research, U of M's who need to understand how to country view this event as a window Accounting Department, and the effectively participate in or manage on what is happening in the Arthur Andersen Professorships. a project. emerging growth company market He also holds a J.D. from DePaul Through case studies, lectures, here in the Midwest generally." University Law School. and hands-on use of microcomputer project management software, The April program presented 22 Davidson is the Arthur Young emerging growth companies. All but Professor of Accounting, Graduate participants will gain exposure to the range of issues, tools, and two were Michigan-based and most School of Business, The University were technology-oriented. The of Chicago. He has been on the techniques found in today's project environments. firms ranged from start-up stage faculty at Chicago since 1958, and to those seeking second-round has occupied the Arthur Young financing, and several which were Chair since its establishment in considering public stock issues. 1962. Also in 1962, he helped

29 Murray Weidenbaum that we need a strong defense Outlines Report Card on establishment in the dangerous world we live in, but I think Reaganomics as 17th it's critical that we harness the Mclnally Speaker military budget — that would "If there is any lesson from the be Step Number 1. past three years, it's the necessity We need a comprehensive for hard choices," said Murray L. program of budget restraint Weidenbaum, the first chairman and I would extend that to the of President Reagan's Council of entitlements. Social Security is Economic Advisers on March 8 a moral commitment, whether when he delivered the 17th annual or not the people on the rolls Mclnally lecture at the Business really earned or paid for those School. "Unfortunately, the panacea entitlements. You can just shave approach is alive and well in our the cost of living adjustments a nation's capital," he continued, bit and I would do that. But in "but there are no panacea's — considering people not yet on only hard choices." the rolls, I think we need to Weidenbaum, who is now director recognize the large welfare of the Center for the Study of component in Social Security. American Business at Washington It makes no sense whatever for University, St. Louis, went on to people to generate the right give grades to Reaganomics for to get welfare at the expense various aspects of the program. He of the next generation. Every graded on four factors: tax cuts, to department agency, including which he gave a grade of B, saying business and foreign subsidies, that although taxes were cut, needs to be restrained. Last "Christmas tree" provisions in fall, the Senate public works Congress increased tax revenue loss committee reported out billions substantially; spending, to which of dollars of new public works he gave a grade of D, saying that Murray Weidenbaum projects, with the most marginal revenues were overestimated and ratios of benefits to cost. A BC expenditures underestimated, ratio of 1.0 is required to meet adding that the San Andreas fault and increase demand and the law. When the Treasury is of Reaganomics is the failure to willingness for its use. There's paying 12% for its long-term control spending; regulation a feedback effect there that money, those public works worries me and gives me the projects are being justified with reform, to which he gave a grade 7 of C, saying that government incentive to tackle the military a discount rate of 7- /8ths. That budget. I think that the real tells you that those projects with intervention slowed on the r regulation side, but increased in unfinished business of the BC ratios of 1.2 or 1.0 w hen protectionism; and monetary federal government, of recalculated — not at 12%, restraint, to which he gave a grade Reaganomics, is the budget — but at 10% — would flunk the of B-, saying that the Fed brought the fiscal policy. Why do I focus benefit cost test. There's a billion down inflation, but that we're back on the military budget? Because, dollars right there. That's just to a stop and go economic policy. when dealing with various the most dramatic example of These grades added together interest groups, it's clear to the softness of every department produced an average of C + at the me that you're not going to get and agency budget. If I were midterm, a grade Weidenbaum support for cutting the other elected I wouldn't have to worry- called "disappointing but parts of the budget as long as about reelection and I would respectable." they feel, with good justification, focus on that. You know the that defense is getting a free watch word: that old budget After his address, Weidenbaum ride. And I have to report that office motto I love to quote, fielded questions from the floor as the man in the oval office has "Good budgeting is the uniform follows: vetoed every package of budget distribution of dissatisfaction." Q. Let's assume that Murray restraint that's been presented Weidenbaum is running for to him either by the Republicans Q. How would you grade Reaganomics President in 1984. What would be in Congress, or by his own staff as a way to balance the budget"? the two or three more important because it invariably contained A. Well, I guess I gave a B and a D facets of your economic program? some shaving of the speed of the to fiscal policy. That averages A. Let me leave one idea here. military buildup. Now I don't out to a C. That's not good The great expansion of military want to pick on the military enough for a high-powered capability does perhaps generate because I happen to believe program like the Business

30 School at The University of health insurance program. Just clean them up. Nevertheless, the Michigan, is it? It isn't at require every employer to take fact remains that if you close Washington University. out a private policy to provide loopholes, you're reducing the Q. How do you account for the fact that every employee with full health deficit by increasing revenues. Alice Rivlin —formerly chairman insurance benefits. It wouldn't Given my philosophy, which is of the capital budget office — cost the government a nickel, consistent with the fundamentals correctly, or almost correctly, but would cost the American of Reaganomics — I'm a real predicted what the budget deficit economy every bit as much. Reaganaut when you push me would be last year? Was she being That's the kind of game playing hard, I'm even for the 5% real pessimistic, or was she realistic about you encourage with the increase for defense that he the economic situation? constitutional amendment. The campaigned on, although he's problem isn't 1987 or 1988, it's over 10% now — but if you A. Realistic, of course. Alice is a here in this year, divisible by 4. really want to reduce the role fine economist. I know it's fashionable to say you of power of government in this Q. Are there any fundamental can't expect either the President economy, you don't do it by constitutional changes that you think or the Congress to take tough increasing revenues, you do could be made that would alleviate action because it's an election it by cutting spending. In the spending problems of the year. I notice they haven't Washington, this is known government? taken leaves of absence for as the hook. the campaign and I guess I'm A. Not really. It may surprise you idealistic enough to say they owe Weidenbaum, who holds but I'm not an advocate of a making those tough decisions to the Mallinckrodt Distinguished balanced budget amendment. the taxpayer who continues to University Professorship at It bothers me that many people give them their paycheck. I Washington University, is well who are unwilling to tackle the don't think a constitutional known for his work on government tough budget problems of 1982, gimmick is the answer. I think if regulation of business. His 1983, and 1984 are very willing you really want to get a message publications include "Business, to have the people who'll be in across, throw out of office every Government, and the Public," "The charge in 1988, 1989, and 1990 officeholder who runs for Future of Business Regulation," face those problems. If you election this year who says he "The Economics of Peacetime really believe in a balanced or she doesn't want to face up Defense" and "The Modern Public budget, you'd take action to start to the budget because it's an Sector." on that road today, you don't election year. You do that and He has held a variety of business, have to wait until 1987, 1988. you won't need a constitutional government and academic positions. But there's another reason. amendment. He was chairman of the Council of This may sound like a wise-guy, Economic Advisers from January betraying my early background, Q. One of the issues today is tax reform. 1981 to August 1982, and served as but I wouldn't mind passing the I'd like to know what you think the Assistant Secretary of the Treasury amendment; it would increase chances are of some type of tax for Economic Policy during my net worth very substantially. reform, with a more equitable spread 1969-71. He joined Washington I'm almost serious; I would take of taxes and where certain industries University in 1964 and chaired the a leave of absence and go into like defense contractors wont be economics department in 1966-69. a Washington consulting office allowed to defer their taxes con­ Previously he was a fiscal econo­ dealing with one item: how do tinually from year to year. Do you mist in the U.S. Bureau of the you get around it? I grew up in think there is any possibility of this? Budget and an economist with the old budget bureau — that's A. Very little. Without going into the Boeing Co. my technical field. In 10 minutes the technical details, let me I once came up with more than Weidenbaum is a 1948 graduate say that part of the problem in a dozen ways of getting around of the City College of New York. the defense area is that one the constitutional amendment to He received an M.A. degree at standard element of defense balance the budget. Let me give Columbia University in 1949 and costs — interest on borrowing — you just one example. You want a Ph.D. degree in economics at is not an allowable charge on to set up a multi-billion dollar Princeton University in 1958. He defense contracts. Because of national health insurance received honorary degrees from that provision of the armed system? I have a way you Baruch College and the University services procurement regulation, can do it without a nickel of of Evansville, a distinguished we have the tax allowance you're government money. You don't achievement citation from his alma referring to. You have to look have to pass a law, which is what mater, several writing awards and at the whole thing as a package, most recommend, that every induction into the Free Market Hall so to speak. We're not going to employer has to send money of Fame. get the $50 billion reduction in into the Treasury and the The Mclnally Lecture is named the deficit by closing loopholes, Treasury then gives it to the in memory of former U-M Regent although it's always useful to William K. Mclnally.

31 SB SS 1 Q ' M

s the Capital Campaign of the A Business School neared the $15 million goal, members of the School's Visiting Committee and Development Advisory Board held meetings on the same day. After lunch, the two boards, student leaders and members of the Student Development Advisory Board, donned hard hats and toured the Kresge Business Administration Library and the Computer/ Executive Education buildings which are now close enough to completion so that you can get an idea of the layout of the buildings. At a morning meeting, the Development Advisory Board discussed plans for completion of the Campaign. "There's no question that the success of this Campaign would not have been possible without the intense involvement of our volunteers, as exemplified by the members of the Development Putting on their hard hats before taking a tour of the buildings under construction are Advisory Board," said Dean Gilbert (left) Oscar Lundin, vice chairman (retired) of General Motors and W. Bruce Thomas, R. Whitaker, Jr. He stressed that vice chairman-administration and CFO of U.S. Steel Corporation. Lundin is a member the DAB has been very much a of the Development Advisory Board and Thomas is a Visiting Committee member. working board which has identified prospects, made personal calls, and been involved in the successful $50,000 and $2,500,000 are a Others are: Kmart Corporation, completion of many proposals. distinguished list, including The Kresge Foundation, Lamb Bendix/Allied, Blue Cross and Technicon Corporation, "It is undoubtedly due to the Blue Shield of Michigan, Bormans Manufacturers National Bank of efforts of this Board and to the Incorporated, Bundy Foundation, Detroit, McGregor Fund, Meijer, other dedicated volunteers in the Burroughs Corporation, Chase Inc., Michigan Bell, Mobil, business community that we have Manhattan Bank, Chelsea Milling, Monroe-Brown Foundation, such a high level of corporation Chrysler Corporation, Comerica, National Bank of Detroit, and foundation support for this Inc., Consumers Power, D'Arcy Owens-Illinois, Inc., Reliance campaign," said Assistant Dean MacManus 8c Masius, Deloitte Electric Company, Rockwell Anneke de Bruyn Overseth, Haskins &: Sells, Detroit Edison, International, Sheller-Globe, The director of development and Ex-Cell-O Corporation, Federal Skillman Foundation, Steelcase, external relations. More than Mogul, Ford Motor Company Fund, The Stroh Brewery Co., The 11,225,000 dollars, or 86 percent of Foremost Corp. of America, Towley Foundation, the total amount raised, has come General Foods Fund, Inc., General Trans-Industries, The Upjohn from corporations and foundations. Motors Foundation, Herrick Company, Warner-Lambert, Corporations and foundations Foundation, Hoover Universal, ITT Whirlpool Foundation, The Whiting giving amounts ranging between Corporation, Kellogg Company, Foundation. Kelly Services.

32 Below, Visiting Committee member Thomas S. Monaghan, president and chairman of the board of Domino's Pizza. Below right, Norman E. Auerbach, retired chairman of Coopers & Lybrand, admires a piece of the floor tile to be used in the new buildings. In the background, left to right, are Frank M. Hennessey, president and COO of Handleman Cdmpany; John A. Hooper, vice chairman of the Chase Manhattan Bank; Roger T. Fridholm, president of the Stroh Brewery Company; Jerome Jacobson, president, Economic Studies, Inc. and former vice chairman of strategic planning, Burroughs Corporation, and Joseph G. Conway, vice chairman, National Bank of Detroit. All except Conway are Visiting Committee members. Conway is a member of the DAB.

Left, Visiting Committee members (from left) Frank M. Hennessey, president and COO of Handleman Company; Jerome Jacobson, president, Economic Studies, Inc. and former vice chairman of strategic planning, Burroughs Corporation; Vincent R. McLean, executive vice president and chief financial officer of Sperry Corporation; and Development Advisory Board member Joseph G. Conway, vice chairman, National Bank of Detroit. (Photos by Dean Russell.)

"The fact that the Business School complex of buildings into the new consultant; Louis B. Cushman, is receiving so much support from part without going outside. And it's chairman of the board of Cushman the business community is also a possible now when going through Realty Corporation, Houston, reflection on how our graduates are the buildings, even though dust and Texas; David K. Easlick, Sr., valued in the corporate world," debris and construction work are all chairman of the Board of Michigan commented Jack Edman, vice around you, to get an idea of the Bell; Donald R. Mandich, chairman president of General Motors and spaciousness and natural light that of Comerica Incorporated; Don T. chairman of the Capital Campaign will make the new buildings so McKone, chairman and CEO of Steering Committee, in announcing inviting at the same time that they Libby-Owens-Ford; Richard L. the list of corporate and foundation will be so useful for enhancing the Measelle, managing partner of major gifts. programs of the School. Arthur Andersen & Co., Detroit; Meanwhile, the buildings At the last meeting of the John C. Morley, president and CEO continued to progress. The wall of Development Advisory Board for of Reliance Electric Co., Cleveland; the current library was "punched the academic year, certificates of Goff Smith, retired chairman of through" to connect it with the new, appreciation were given to the Amsted Industries, Chicago; and glass enclosed corridor that will members who are leaving the Board W. Paul Tippett, Jr., chairman make it possible to walk from the after terms of four years. They are: and CEO, American Motors existing Business Administration James F. Bourquin, management Corporation.

33 Class Notes

5Q^f HOWARD PARSONS, MBA 1935: James Caleb Hills, Edward W. graduated in the 1940s, and would *) 4 '37, having spent the winter McCormick appreciate your help in locating in Brownsville, Texas, writes, "The 1936: Mrs. Robert D. Ross, William them. past winter was the worst in recent Ming-Lu Yin 1940: Charles W. Barkdull, John history as far as weather was Whipple Hart, Donald T. Hartley, concerned. The big freeze, starting 1937: Jackson B. Holden, Russell E. Laitala, Pei Liang Lee, Roy Lyon, Benjamin Leopold, Melvin C. on December 15th, completely Lubar, Ernest G. Monroe, Donald ruined the citrus crop for this year Arthur W. Ralston, John G. Steele, Jr., Nathan Steinberg, Walter P. H. Runck, Samuel Wilner, William and for several years to come. The Buchan Wood other agricultural products were Sullivan, Elmo Lee Vincent, laid low, but by recultivating and Winfred P. Wilson, Shih Chiao Yu 1941: Walter J. Adams, Richard A. seeding, a new crop will be ready by 1938: Milton F. Garrison, Kenneth Babcock, Miles J. Doan, William B. May. The disasterous thing about it K. Kilgore, Alex MacRae, Gordon Gough, Frank Fabian Henry, all is the total effect it had on the W. Roeglin, Spencer J. W. Wilkie, Robert F. May, Floyd Donald labor force. There are thousands William S. Wittan Skinner, FlorentJ. Verhulst, Jr. of farm workers without work and 1942: Edward P. Christensen, II, with no funds. It was the depression 1939: Donald G. Bronson, Matthew Wren MacLean, Richard W. Mayer, John Wesley Clarke, Paul W. all over again. The value of the Peso Fellman, Robert E. Johnson, continues to drop. Last year it was Donald R. Murdock, Mitchell Raskin Thomas E. Peltier, John William 140 to the dollar. Today it is 170. A Ross, Harry R. Slusser, Roy John good lunch for two with a highball Weber will run, with tip, $14.00. In pesos that would be $2,380. It takes me 3A€% FR. JOE OTTE, MBA '42, 1943: Miss Mary E. Hagan, back to the study of the German M.^ the first Catholic priest to Seymour Kalb, Dean John Miller, inflation following the war in 1919." receive an MBA at the Business Richard B. Phillips, Andrew M. March 1 ended the winter for School writes, "To change one's life Skaug, John C. E. Wright Howard in Brownsville, and he is style of many decades is most 1944: Mrs. Flavio R. Coutinho, Sr., now in Muskegon, Mich, for the difficult, I have learned. This Selig H. Estroff, Mrs. Paul S. summer. process was started for me last Landis, Miss Sylvia H. Rainer February. Our Provincial became concerned about my health and the 1945: Dwight W. Hunt, Robert T. continuation of the intensity of my Skinner Missing Alumni activities. After prayerful thought 1946: George A. Blais, Cecil Eugene and consideration, he and the pro­ Bundren, Forest C. Carter, Mrs. We have no addresses for the vincial council declared that I close Morris Click, John Pryor Emmett, following alumni (both BBA St. Mark's House of Prayer and James V. Gallagher, Harold Leroy and MBA degree holders) who move to a private residence in Santa Gutzmer, Gerald Levy, Steve graduated in the 1930s, and would Rosa, California. My friends have Thomas Machalk, Thomas David appreciate your help in locating been most considerate in respecting Merriman, Robert Keith Morrison, them. my need at this time for privacy and William H. Perham, Edmund B. 1930: Russell A. Pratt, Ben Everett in continuing their prayers for me. Rickard, Henry Earl Schreider, Singer, George H. Tidswell, My beloved professor Bill Paton Richard G. Trudeau, Edward T. Alexander E. Toth and I still exchange letters," Wojcik, Miss Anne C. Wolf, Frank he concludes. Newell Worden 1931: Thomas Bell Aldrich, Jr., James Donald Watson 1947: Richard H. Bailin, Roy William Beckman, Bernard L. Blair, 1932: Willard H. Zentgrebe Emsar Bradford, Jr., Morton I. 1933: Herschel E. Austin, Missing Alumni Breen, Mrs. John Francis Brown, Mrs. Everett K. Seymour We have no addresses for the John Francis Brown, Eugene Henry 1934: Henry R. E. Black, following alumni (both BBA Bush, Philip L. Clifton, Leonard R. Crane, Mrs. F. Richard Crane, Hsieh-Heng Pien, Charles K. Rhed, and MBA degree holders) who Morris Schwartz Robert E. Dale, John B. Dalton,

34 Llewelyn C. Daugherty, Gustavo Depedro-William, Robert M. Burling, Louis W. England, Julian E. Fein, Martin Feinberg, Thomas Politics and the Budget is the Topic of a H. Fellows, Howard L. Fraley, S. Tracy Freeman, Robert D. Gardner, New Book by Howard E. Shuman, BE A "49 Edmond R. Goldstein, Mrs. Vernon R. Grady, Martin J. Horan, Edward "Alter spending 27 years in the Congress. Other books did J. Husemann, Richard A. Igo, eye of Hie hurricane. I fell 1 bad not include an up-to-date or Donald B. Jackson, Robert J. the right to make judgments/' meaningful analysis and criticism Mason, D. Paul McCloskey, Edward writn Howard K,, Shnman, BBA of that 74 Budge! Act/' James McGraw, John Henry '•'19, about his new book, Polities The book, published by McKenzie, Edward H. McNulty, ami the Budget: The Struggle Prentice-Half Inc., in January Kermit S. Midthun, Philip Edward Between The President and The lOH'l. encompasses current Morin, James F. Mummey, Frank Congress, "Those who pretend to concerns, including the Reagan M. O'Brien, Jr., Raymond Jos be neutral and objective about budget, the use of reconciliation O'Hare, Calvin Edgar Peterson, subject matters as politically and majority rule to pass the John Joseph Phelan, James A. controversial as spending, taxes, Reagan budget, and the Reeves, John Frank Rys, Frederick debt, delimits and monetaiy constitutional crisis which R. Sevin, John J. Sharemet, Russell policies are kidding themselves provoked the 1974 Budget Act. L. Speirn, John E. Stamm, Robert and thetr readers," Mis eyewitness accounts give a F. Stephan, Charles P. Trafficante, Presently n visiting senior personal perspective on the clash Thomas M. Tressler, Frank J. Turk, lecturer in the political science of presidential and congressional Judd Gray Vear, William L. department at the University priorities in the budgetary Warren, Warren Dean Watts, of California, Sattta Barbara, process. He illustrates this Harlow S. Williams, Robert C. Howard was the top legislative through historical budget Wooster, Paul H. Wright aide m Senators Paul H„ Douglas development including the origins of money committees, the 1948: Frank Bartlett, Jr., Maurell L. arid William Proxmire between 19f>a~f982, He did their pcisonal Book ot Estimates, congressional Baxter, Sr., Donald E. Beall, John and presidential budget R. Bevis, Mrs. Roland Carl Bostrom, stall' work for the Senate Finance, Appropriations and commissions, the New Deal. Ward M. Brown, Carl Alonzo i:«u n t er-<' v c I lea J pol icy, Brownell, Jr., Andrew Bugosh, Banking Committees, the Congressional Joint Economic stagflation, monetarism and Howard W. Campbell, Robert E. supplv-skie e< onomics. Charters, Jean Stuart Cooper, Committee and the joint Study Wayne R. Crozier, Charles John Commit!ee which recommended Howard was sent to Ann Arbor Cullum, Harry Lester Darling, Jr., the 1974 Budget Act He has also in I94H by the Navy, where he James F. Donovan, James Robert served on the staff of the Joint spent one year at the Business Evans, James Robert Fleming, Economic Committee and was the School. He then returned in 1949 Donald R. Fletcher, Gerald Orla executive director of the National to get the BBA degree. "I cherish Ford, John Arthur Ford, William Commission on Urban Problems the time 1 spent at Ann Arhor M. Fox, John Friel, Earl E. Garland, (The Douglas Commission), eveu though we took as many as Vernon R. Grady, Bert Graham, "With this first hand experience, 20 tin its a semester which was a James Brandt Griffith, Burdette S. I didn't recogni/e the very great burden,*" he writes. Henry, Robert A. Hoffman, Seigi ties* riptioiis of how polities and "Of course we were in the old Imamura, Joseph Lee Johnson, the budge! worked which I found building in 1943-44 but it was the Martin J. Kabcenell, Alan Stuart in many books on the subject," quality of the teaching and not Kahn, Peter Savois King, George A. says Shuman. "Other books the building that mattered. In Kohlbacher, Joseph Lippman, largely ignored the politics of 1949 I took a course from Paul Charles M. Martin, Mrs. Richard A. taxes, such as loopholes, and McCracken whom i later watched Mayer, Richard C. Mitchell, Stephen treated the budget as dull and testify before the joint Economic R. Muntean, Frederick B. Peters, turgid, I see the budget as the Cornmitlee on several dozen Mrs. Alvin Plotkin, Captain Richard number one political and occasions." W. Rauch, Arlie Denton Reagan, priorities document of every In addition to Howard's Jr., Irvine Robinson, Melvin L. Rutt, administration. For instance, the work on the Senate, he has been Jerome L. Schwartz, Leo N. Scull, 197-1 Budget Act was designed involved with seven senatorial Jr., Cecil Warren Sink, Donald Fey by Congress to discipline itself campaigns and three presidential Small, Mrs. Elizabeth D. Smith, and retrieve power from the campaigns, He has his B.S. and Richard K. Sullivan, Ralph Weldon President. It ended up. however, M,S„ degrees from the University Taylor, Robert C. Vannorstrand, as an instrument by which the of Illinois and his BXitt and Mrs. Morgan R. Walker, Daryl K. President enhanced his own MiitL degrees from Oxford power and disciplined the I! n i vet*si t \. F t ig la nd.

35 Ward, Harry Quinby Wasson, Captain Jerome C. Weiler, Daniel A. Woodward Paul Brentlinger, MBA *519joim 1949: Peter M. Behrendt, Ivo George Binder, Harold A. Bissell, Venture Capital Firm as a Partner John Robert Browning, Robert C. Paul Brerttlmger, MBA T»l, specializes in early stage Buckborough, James W. Burchard, who. during 'M year* with the investments in factory Laurence A. Burk, Lt. Jack L. Harris Corporation, helped automation, computer-aided Carter, George B. Craw, Jose M. De to transform that company design, data processing, LaTorre, Byron L. Dougan, William rrom one involved in printing telecommunications and B. Dwyer, Edwin S. Eakin, Richard equipment to one which is microbiology. L. Fox, Thomas A. Gelwich, Murray now rota fly tmolved in electronic hi 198H, as senior vice Jules Grant, William W. Harden, hi formation technology, has now president-finance, Paul managed Clyde Acomb Harvey, George P. joined Mergent baler Partners as the divestiture of Harris" printing Herman, John Robert Hoolsema, a partner. "The firm is adding equipment business, producing Thomas S. Horton, Lt. Col. Ward partners now to take advantage approximately $25ti mil lion in C. Howard, William R. Jack, of the nationwide proliferation cash from a leveraged buy-out Alfred Lewis Jenkins, Jr., Martin L. of new venture investment transaction. He then managed Litman, Herbert F. Lorenz, Robert opportunities," said David completion of the merger into Marcus, Ted Margolis, Seymour Mergenthaler, the managing Harris of i^anier Business Marshak, Tyler F. May, John R. partner, in announcing Products for $280 million in McCormick, David James McElroy, Brentlmger's appointment to stock. Frederick W. Means, Jr., Roderick the venture capital firm which Faith who is a member of the G. Messinger, Charles F. Morgan, b based in Cleveland, Ohio. Financial Executives Institute, is Charles A. Morgan, Jan H. Myran, MergenthaJer Partners currently chairman of the advisory board Jesse L. Nelson, Ernest A. Novak, has about $50 million under for the William A. Paton Victor H. Orn, Horace R. Rathbun, management and 27 active Scholarship Fund, Donald L. Rehberg, Stanley H. investments nationwide. It Reitman, Clarence A. Rice, Marvin Lloyd Robinson, Harold A. Roscoe, William E. Russell, Mrs. Carl S. Schade, Edward A. Schaefer, regional grocery chains. My wife, sits on the small proprietor, John Z. Smith, John T. Staff, III, Jenette (MA '58) and I live in membership and budget council John Ten Hoove, James Peter Winnetka, Illinois with our son committees of the American Hotel Thompson, John M. Topper, and daughter. and Motel Association. George Vaishvila, Robert L. OHN Vincent, Junior G. Wiley, John B. 9 K g* STUART F. PLATT, MBA ' KCi J E- SCHIPPEL, BBA '56, Wood, Frederick R. Zimmermann £/ O '56, has been installed into %J %J MBA '59, has been elected the newly created position of to corporate secretary of Homart Competition Advocate General of Development Co. in Chicago, the U.S. Navy. He is now the senior 9 fZA JIM BOURG, MBA '54, Illinois. He will continue to serve as official responsible for overseeing vice president and general counsel *3 A was recently promoted to all Navy acquisition programs to president, freeze dry division of of Homart. Before joining Homart increase competition in the in 1981, John was vice president Right Away Foods Corporation procurement of systems, equipment, in McAllen, Texas. He previously and general counsel of ABKO parts, and consumables. He writes Properties, Inc., a Detroit-based real served as vice president — sales that in his previous position as and marketing. estate company. John is a member deputy commander, Naval Sea of the American Bar Association, Systems Command and director, Illinois State Bar Association, Contracts Division, he directed the National Association of Corporate G. KNIGHT HOUGHTON, largest contracting operation in the Real Estate Executives, International BA '51, MBA '55, writes, '55 Federal Government. He lives in Council of Shopping Centers, and "I left Arthur Andersen and Co. in Arlington, Virginia. Phi Delta Phi legal fraternity. 1960 and served as controller of 9 D MO NEY BBA 54 Homart is in the shopping center Shedd-Bartush Foods Division of K^y J- - ° ' ' > development industry with more Beatrice Foods Co. in Detroit for «3 / MBA '57, president of than 52 million square feet of eight years. I moved to the Chicago Mission Inn Motel in Mission, retail space nationwide. area in 1968 as vice president Kansas, is the chairman of the of Topco Associates, Inc., a board of the Greater Kansas City 9£1£\ EDMUND J. WHITING, MBA cooperative in Skokie, Illinois, Hotel Association and the Kansas Oil '60, has been elected a where I currently work. Topco Lodging Association. He was also director and vice chairman of the obtains private label merchandise, awarded Hotel Man of the Year board by the Ex-Cell-O Corp., produce and fresh meat for large for 1983. In addition, Mr. Mooney Troy, Mich.

36 AMES K 'fi "I J - AGNEW, BBA '61, O J. has been named executive vice president of J. Walter Stanfmxl Named Professorship Thompson/USA's western regional structure in Los Angeles, California. Goes to Joel Detmki MBA "63 He oversees all operations of the Los Angeles and San Francisco Jorl S, Detmki, MBA TJS. k measurement systems, budgetary offices, and is a member of the firsi person to be mimed to systems, and alternative forms of JWT/USA's board of directors. Jim the new Joan E, Horngren regulation of the accounting began his advertising career with Professorship in Accounting at field. JWT in 1962 in the New York and Stanford University's Graduate He has twice won the Paris offices, working on Kraft, School of Business: American Institute of Certified Ford, Warner-Lambert and Lever Demski. who currently holds Public Accountants award for Brothers accounts. In 1973, he the Holden professorship at "outstanding contributions to joined McCann-Erickson/USA Stanford, is national!) known for accounting literature/' He also where he rose from executive vice his research on the economic won the American Accounting president in the Los Angeles office analysis of accounting Association's com petiti ve to president and chief executive in formation systems, research manuscript award in I960. officer. Just before joining which has helped provide1 the lfcmkskfe Phi), is from the JWT/West, Jim was a partner foundation for cost-benefit University of Chicago. He joined responsible for marketing and analysis of financial report, cost the Stanford faculty in 1960. strategic planning at Maguire Partners, a Los Angeles-based commercial real estate development Company, a producer of aerospace Manama, State of Bahrain, in the company. Recently, Jim has been electronic systems and consumer Persian Gulf. His address is P.O. named to an advisory committee products. Edward joined Singer in Box 1082, phone number: 682748 for the Los Angeles Olympic 1983 as assistant controller. Before and his Telex: 9258 UCOBAH. He Organizing Committee for the coming to Singer, he was assistant would be pleased to hear from any 1984 Summer games. He is also controller for Midland-Ross alumni in the area. Before accepting a member of the Board of the Corporation. Edward, his wife, and the head librarian job, Hal was a American Association of Advertising three children, live in Ridgefield, deputy director at the Salzburg Agencies and the Western States Connecticut. Seminar in Salzburg, Austria. Advertising Agencies Association. He spent several months a year While a student at the Business interviewing prospective Fellows School, he was president of his class. 9|?E' DAVID F. JOHANNIDES, U«L$ MHA '65, is presently in Germany, Italy, Malta, Bulgaria, serving as vice president for Rumania, Hungary, and Yugoslavia. administration at Methodist The Youngs live at 313 Farmdale 9/^0 WALTER L. BENNETT, JR., Evangelical Hospital in Louisville, Road, Hopkins, Minnesota 55343. %J3 MBA '63, has been Kentucky. Since 1979, David has Their son, Jeff, is a sophomore at employed by Dow Chemical USA been overseeing administrative Macalester College in St. Paul, and as a professional engineer for the duties for cardiology, clinical daughter Amy, is a freshman at past 28 years. He is presently the engineering, laboratory, Occidental College in Los Angeles. engineering projects superintendent maintenance, neurophysiology, Hal's wife, Margaret, works for the in Midland, Michigan. From pharmacy, physical therapy and Minneapolis branch office of Gale 1964-1969, Walter was at the John respiratory care. He is responsible Research. F. Kennedy Space Center under for quality assurance, the library contract to NASA. The remainder and the systems engineering THOMAS P. HILL, MBA '66, has of his time has been spent with programs at the hospital. David been promoted to president of Dow's Michigan division in Midland. is also one of the few Louisville Eagle Coach Work, Inc. of Walter writes that he has been a residents who qualified for the Lancaster, New York. Thomas member of People to People Boston marathon this year. In 1983 joined Eagle Coach in 1982 as International since 1976, and is he finished 386 out of 2400 runners executive vice president and general currently the chairman of the in his age group. This year, he manager. He had previously been Michigan State Council. He is also placed 489 out of 1700 runners, general manager of Gulf States a member of the International which also qualifies him for the Paper Company of Tuscaloosa, Board of Trustees of People to 1985 running. Alabama. He now lives at 68 People International. Georgian Lane, Williamsville, N.Y. 14221. 9£J£J As of November 1, 1983, OO associate professor HAROLD JOHN C. MURRAY, BBA '67, 9f* A EDWARD P. SCHADE, MBA C. YOUNG, MBA '66, became head '67] D. '69, writes, "I recently O jfc '64, was recently elected librarian at the University College took a new position as regional corporate controller of The Singer of Arts, Science & Education in counsel for Real Estate Investments

37 with the Travelers Insurance Company in Oak Brook, Illinois. I am responsible for the legal Coach Bill F-rieder, BBA "64, MBA. "65, aspects of the Travelers urban and agricultural real estate investments celebrates after his team wins the NIT in a 20 state area. I am a member of the Michigan and Illinois bars, and a member of the Section Council of the Section on Real Estate Law of the Illinois Bar Association." John also writes that he authored an article, "Garn- St. Germain and Due-on-Sale Clauses in Illinois — An Update," that was published in the October, 1983 edition of the Real Property Newsletter of the Illinois State Bar Association.

DENNIS J. PARUCH, BBA '67, MBA '68, has been elected vice president, gas contracts administration of ANR Pipeline Company, a subsidiary of American Natural Resources Company. Dennis most recently served as vice president, finance, marketing and administration of ANR Storage Company, an affiliate of ANR Pipeline. Dennis joined ANR in 1972 as a staff assistant in the finance activity of Michigan Wisconsin Pipe Line Company. On March 28 al Madison Square group of Michigan players who He has held several positions in Garden, the Wolverines won hoisted Coach Frkxler, BBA *(H, ANR Pipeline's finance and the National Invitational MBA 't>5, to their shoulders as he corporate planning activities. In Tournament (NIT) against the jubilantly cut off the basketball his new post, Dennis will be based Fighting Irish of Notre Dame, net alter the vktory over Notre in Houston, Texas. Michigan handed the Irish an Dame, and the Michigan alumni 83-63 defeat, climaxing its most who repeated!) sang the ROYAL G. C. COLLETTE, MBA '68, outstanding basketball season in "Victors" in Madison Square recently retired as a captain in the the last seven years. The voting, Garden as they proudly watched United States Navy Supply Corps. iargel) fresh man and sophomore the victorious* Wolverines are He has formed his own consulting team, won 23 games while losing very apt to have more to cheer firm, Royal G. C. Collette & 10, providing Michigan fans with about in the seasons to come. Bill Associates, Inc., in the Washington, tremendous excitement all vear Krieder, his coaching colleagues. D.C. area. long. Their play in the KIT and players have once again Finals was nearly Hapless and, al reminded us that at Michigan. ROBERT M. DUBBS, MBA '68, J.D. times, awesome. It was a happy excellence conies in manv forms. '68, has been named to the newly created position of general counsel of Universal Health Services, Inc. in ^tf%0 STEPHEN D. GOLDMAN, Company. The Wornick Company King of Prussia, Pennsylvania. He Oil MBA '69, has been is one of the largest producers of was formerly chief counsel in the appointed vice president of military rations and a manufacturer law department of Sun Company, marketing for the Wornick of freeze-dried foods through its a Radnor, Pennsylvania-based oil Company, where he is responsible subsidiary, Right Away Foods company. Universal Health Services, for product line extensions, new Corporation. Through other Inc., owns, operates and manages product development and business subsidiaries, it also produces acute-care and psychiatric hospitals. development for all divisions. calorie-controlled nutritionally Robert lives in Bala Cynwyd, Before joining Wornick, Stephen balanced meals and retort packaged Pennsylvania with his wife, Judy spent 13 years in marketing food products. Stephen lives in and two daughters. management with the Proctor and Orinda, California. Gamble Company and the Clorox

38 ROBERT F. GROSS, MBA '69, died in mm per year building company, division, for Hycon Corporation early April at his home in Elmhurst, Stevenson Building and Design, in Bethelehem, Pennsylvania. He, Illinois after a long bout with which specializes in luxury homes his wife, Beverly, and their two leukemia. He is survived by his wife, averaging $1,250,000 in price." children live in Macungie, Celia, his daughter, Deborah, his Pennsylvania. son, Jason, and his parents, Frank JM A PETER L. EDWARDS, BBA and Elizabeth Gross. Robert was FRANK J. LONGO, MAS '75, has been / TC '74, J.D. '77, writes, "I am vice president of the Northern named corporate vice president in pleased to say that I've recently Trust Bank in Chicago and a the strategic planning department at achieved a long-standing goal — member of the First Congregational New York Life Insurance Company setting up my solo law practice. I United Church of Christ in in New York City. He is a Fellow concentrate in the areas of business Elmhurst. of the Society of Actuaries and a finance and technology ventures, member of the American Academy particularly in start-up situations. of Actuaries. Frank and his wife 9*7 CI MICHAEL SIMPSON, MBA My practice, after only three Loretta live in Carle Place, New 4 £ '72, reports that he was months, is far more active than I York with their sons, Stephen, age 2 promoted to vice president, sales, ever anticipated." Before starting and Thomas, born February 19, in September of 1983 for the Pryor his own practice, Peter was senior 1984. Corporation in Chicago, Illinois. legal counsel to Jones Intercable, He was previously a New York sales Inc., a cable television operator and 9^T£? VALERIE MUDIE HUTCHINS, manager for four years and a manufacturer of computer, security 4 O MBA '76, was recently product manager for four years. and cable television equipment. He promoted to president, MRE He is presently living in Kildeer, is currently serving his third term Division of Right Away Foods Illinois with his wife, Maureen, on its board of directors. He is Corporation in McAllen, Texas. She and their son, Christopher. also currently general counsel and previously served as vice president director of Clonetics Corporation, — finance and treasurer for Right MICHAEL O. MIZANIN, MBA '72, the prospective developer of Away. recently joined the Law Company, revolutionary skin cloning a general contractor in Wichita, techniques. Following his TIMOTHY J. HOPKINS, BBA '74, Kansas as treasurer, and was elected graduation from UM's law school MBA '76, has been named assistant to its board of directors. With his in 1977, Peter worked for the vice-president, international wife, Terry, and four sons, Michael New York law firm of Dewey, banking, for Comerica will soon move to Wichita from Ballantine, Bushley, Palmer and Bank-Detroit. Dolton, Illinois. Wood. He also worked for Coudert Brothers law firm, also in Jfcjhf MARK F. THOMAS, MBA MICHAEL J. YOUNG, MBA '72, has New York. Peter's law practice 4 4 '77, has been named been admitted to the partnership of operates out of Denver, Colorado. director of marketing for the Arthur Andersen & Co. He is based Everett I. Brown Co., a high-tech in Boston, Mass. RONALD M. LEZELL, BBA '74, has architectural and engineering firm been promoted to vice-president in in Indianapolis, Ind. the controller's department of the JHO CRAIG ROBELEN, MBA '73, 9 hf Q GARY RASMUSSEN, MBA '78, 4 O writes, "After leaving Wells Fargo Bank, San Francisco, Calif. • O writes, "After five years in U of M, I spent three years in Ann marketing with AT&T information Arbor as financial controller of JhK DAVID A. SWIDER, BBA '75, systems and Mountain Bell, I have Mathews Phillips, a Pittsburgh-based 4 U joined the Dallas-based formed my own consulting firm, development company (Traver Hall Real Estate Group as vice named Telecom Consulting Lakes, Roundtree Apts., Schooner president and director of Midwest Services doing system design and Cove). I spent the next five years at acquisitions in March. He also holds implementation, long distance Chemical Bank of New York, first the title of limited general partner. analysis and voice/data networking. in real estate loan workout and later Before joining Hall Real Estate, The field is challenging and exciting as an AVP in real estate major David served as assistant treasurer due to the dynamic nature of project lending. From New York, for Guardian Industries telecommunications. I'm getting I migrated to sunny Florida where Corporation in Northville, married in September, and still I spent four and a half years with Michigan. He is also a certified participate in the same hobbies, Awida Corporation as director of public accountant. In 15 states, namely, hockey (as both player and development and then director of Hall Real Estate Group operates coach), softball, and racquetball. sales of Boca West and other Boca more than 35,000 apartment units I've also served on the board for Raton projects. During this time I and 1.7 million square feet of office a volunteer agency dealing with met my wife, Lisa, to whom I've space, with a total value of about troubled youths." He lives in been married now three years, and $1.5 billion. Denver, Colo. we are expecting our first child. I am presently chief operating officer GEORGE WILSON, MBA '75, BSME JOE DANCY, MBA '78, is an attorney (executive vice president) of a $25 '70, is now vice president, filter with the firm of Andrews, Davis,

39 Legg, Bixler, Milsten and Murrah, Inc., in Oklahoma City. He concentrates in oil and gas litigation, Michimn MBA Alumni Dinner held in mining and energy law. Hong Kong with Two Faculty Members "I am still working with Codex Corporation, part of Motorola's Ten Michigan Business School Bank, the dinner included newly formed information systems alumni who are living and sauteed shrimp with mango, group," writes ALBERT COOLEY, working in Hong Kong, and .stewed groupa belly, and ten MBA 78. "I was promoted to lor me r at com i ling professor other delicacies. Participants tn head a new group responsible for George Bruba, who is now the feast included Citicorp planning and managing Codex's working lor Arthur Andersen employees Roderick Leung, BBA entry into the law end of the data & Co. i here, met for a festive 78, MBA 'HO; Terreme Lee, communications market about dinner in April at a Hong Kong MBA 78; Ted Ling, MBA 7T six months ago. I am living in restaurant, I'he dinner was held and Eric Chan, MBA 78. Others Cambridge, Massachusetts, and lo welcome Profess»rs Giinter present were Chung-Ping Cheng* enjoying the benefits of Boston Duley, international business, MBA '81 of die Royal Bank of and the New England lifestyle." and Herbert 1 tildehrandt, Canada: Mary Chung, BBA 75, business administration, who MBA, 77, of'BMP: Sheila Kan, were hodi m I long Kong on MBA 78 of F.sso Standard Oil jHA LAUREL (SMITH) HARRIS, die same dale, each pursuing (Hong Kong) Ltd; Douglas Van. / if MBA 79, writes that she ddlereni privately funded MBA 79 of Exxon Chemical Asia joined Dearborn Federal Savings research projects. Pacific Ltd.; and Frank P. K, and Loan in November, 1983 as a Skillfully ordered and Wong, MBA 79, ol Mansion staff accountant. "I divide my time organized by Dawn Wong, MBA House- between the accounting department '82, who works for Continental and mortgages," she says. "Before joining Dearborn, I worked on the audit staff of Deloitte, Haskins & think and act like a manager." After JQA EDWARD DRUMM, MBA '80, Sells until mid-September, 1983. graduation with his MBA, Knut Oil an industrial relations I also married James H. Harris worked for Sparebanken Vest as specialist for Procter and Gamble in in September, 1983." a manager in commercial loans Cincinnati, Ohio, has been wrorking especially directed to small on P&G's new computerized KNUT RAVNA, MBA 79, dropped by businesses, then moved to Den personnel system, entitled "Facts the Dividend office during a visit to Norske Creditbank as a deputy About Human Resources (FAHR)." Ann Arbor to see old friends and branch manager before returning The system, presently in use in visit his favorite B School professor, to Sparebanken Vest as general Cincinnati and 28 manufacturing C. K. Prahalad. Knut is now general manager. locations, has been in the roll-out manager of Sparebanken Vest in stage for two years. Ed's job has Bergen, Norway, where he is in RMP Pizza, Inc. of Gulfport, been to take the system to outlying charge of foreign operations, Mississippi, has promoted GLENN plants and teach people to use it. In investment securities, special MUELLER, MBA 79, to president. his approximately forty visits, he has services, and the bank's strategy RMP Pizza, Inc., a growing been to Green Bay, New York City, committee. He is one of the top franchise of the national pizza Kansas City, Sherman, Texas, three people in the bank, which has delivery chain Domino's Pizza, Dallas, Texas (where he visited assets of $750 million. He was in the currently owns 73 units in three William Shan, MBA '80), San U.S. to set up a joint representative states. Glenn and his wife started Francisco, Sacramento, Modesto, office in New York for the bank. the office in 1981 in their home Baltimore, Mehoopany, Knut worked for five years as a in Long Beach when there were Pennsylvania, Cheboygan, Michigan, credit analyst in Norway before three stores in operation. During Boston, and Fort Worth. FAHR deciding to get an MBA which, he his three years as controller and is meant to act as a uniform says, has proved very valuable for chief financial officer, Glenn was information center to collect and him. "It taught me a way to solve instrumental in obtaining over $4 maintain employee data. The data problems by looking at them from million in bank loans, and helped is available to generate reports with different angles and structuring build the office staff from two to speed, consistency and accuracy for them carefully. You have to become 59, while stores grew from three to corporate uses and government disciplined, because the work load 73. He has also developed systems requirements. Ed is currently is such that you can't possibly and people to manage store writing and rolling out a get through it without becoming construction, operations, marketing, company-wide absence/overtime/ disciplined. In a sense, it puts you sponsorship, accounting and vacation system. in the same situation you are going computer systems. Before joining to face on the job: you have to RMP Pizza, Inc., Glenn worked for HOWARD PRAGER, MBA '80, a senior two years with Arthur Andersen & training specialist for Allstate in Company in California.

40 Chicago, writes, "For two years, I've served as a part-time instructor on the faculty of Roosevelt University's James B. Whittaker, MBA '66, PhJX 75, Walter E. Heller School of Business. This summer, I'm teaching a Promoted io (Umwiodore in the U.S. Navy graduate organizational behavior course. It's nice to keep on top of James B, Whitfitkt'i-. MBA Niti. the literature, to be challenged by Ph.D. '75, has hern nominated hv working students and to try to keep President Reagan for promotion topics and theories relevant. The to ihe rank of' commodore, experience is most stimulating. Supply Corps. U.S. Nav\ after 27 On the job, I'm getting involved ears of service. The commodore with OD consulting, productivity ~ank is tlu* first of four Navy flag improvement efforts and auks and is equivalent to the establishing a project manage­ ank ol brigadier genera! in ment system. All in all, things fit* Army, Much of Jim's naval have been active lately." arcer has been spent iis defense out rati tug. He has had sea lours BEVERLY J. GRIFFITH, BBA '80, is a on the destroyer USS Compton commercial banking officer at The and on the heavy cruiser USS Northern Trust Company, Chicago. St. Paul, From 1978 10 1980, She works in the western division of he was the flee! logistics officer the U.S. Corporate Banking Group, in Naples, Italy, where he was handling all corporate banking in responsible for Mediterranean Washington, Oregon, Idaho and logistics management and policy,. Montana. Beverly joined the bank lie then became executive office 1 in January, 1981 and was named an of the Navy Ships Palis Control officer in May, 1983. A resident of center tn Mechaniesburg, Pa., Chicago, Beverly is a member of the deputy commander of inventory and in 198*2 became the ant I information systems University of Michigan Club of commanding officer of the Navy Chicago. development. Jim's personal Fleet Material Support office, decorations hit hide the Legion also in Mechaniesburg, which is DAVID FERREIRA, MBA '80, writes of Merit, the Meritorious Service the Navy's primary logistics Medak the Navy Commenda­ that he and Penny Reitelbach (also central design agent for of the U-M, graduate architecture tion Medal anil the Navy automatic data processing and Achievement Medal. He received '80) were married in April and will financial systems. Since 198H live in Cleveland, where he is a his Ph.D. from the Business he has been responsible for School in the field of policy and human resource manager at inventory policy and ADP General Electric. control. Ilis dissertation topic was hardware and software "Strategic Planning in a Rapidly KOK-CHI TSIM, MBA '80, was management at the Naval (changing framronmenf: Energy appointed assistant vice president Supply Systems Command in Companies and the Energy by National Bank of Detroit in Washington. IXC, where he is Shortage." its international division.

JEFFREY ROYCE BENJAMIN, MBA '80, is now working for the Los Angeles 9Q I RUSSELL F. SURMANEK, president and general manager Olympic Organizing Committee. He O J. MBA '81, was recently of the subsidiary with dotted-line was formerly an auditor for Arthur promoted to division finance accountability to the controller. I've Young 8c Co. in Los Angeles, and manager for Racal-Milgo been with Racal-Milgo for a little was the senior staff auditor on Government Systems, Inc., a over a year, previously as senior the Olympic audit. He was then wholly-owned subsidiary of financial analyst. My first two years hired by the Olympic Organizing Racal-Milgo which markets after Michigan were spent as a Committee to manage ticketing products to the federal government. senior financial analyst with operations for pre-Olympic He writes, "As chief financial Northern Telecom in Dallas and events, and is now working on the manager of the subsidiary, I have Minneapolis." development of space, staffing, responsibility for all finance and and operational plans for all 26 MARTIN SHENKMAN, MBA '81, administrative activities, from f venues to be used during the 23rd accounting and finance to customer began a job with the New York City Olympiad. He is also responsible administration (order entry, billing, law firm of Townsend, Rabinowitz, for managing all press, athlete and credit/collection, etc.) to contract Pantaleoni and Valente, in May. VIP seating during the games. administration. I report to the vice

41 He has also written a book entitled, Real Estate Taxes: The Basics Planning for Depreciation and Investment Tax We would like to include more news about alumni in Dividend* and hope you will Credits, available through the help by providing m with information about yourself. We'd like to know where International Council of Shopping you are working, and other news about you, such as promotions, new business Centers, 665 Fifth Avenue, New vc,m„eS, a„v lL„CSS or academic hooL, authorship of book, or ar,,de., or York, NY 10022. He writes that he other information that would be ol interest, to alumni. U you would take the lime got married in June, 1983. to fill out the I'orm below and send it to "Pringle Smith, Editor, Dividend Maga­ zine, Graduate School of Business Administration, University of Michigan, Ann Arbor, Michigan 48109," we would very much appreciate it, 9 Q €% Interform, the recently O^w? formed multidisciplinary tame: Degree^) and Class Years: product design firm located in Menlo Park, California, has selected Business Position; DON R. TAYLOR, MBA '82, to serve as the firm's vice president of Business Address: research and planning. In his new position, Don is responsible for Home Address: facilitating assessment and plan­ ning with clients, as well as design Please write below some personal or business news about yourself that we can project management. Before joining share with other alumni, Interform, Don supervised the strategic planning group at General Motors Design staff, where he was responsible for recommending new products to top management. Interform president Peter E. Lowe said, "Don's expertise in the evaluation of new electronic product market potential adds depth to Interform's design approach." Previously, at Booz Allen and Hamilton, Don explored the feasibility and market potential of totally new electronic products for major manufacturers. He was the designer of a number of new products for Polaroid and John Deere while at Henry Dreyfuss Associates, and is the author of a guidebook of human factors recommendations for worldwide use by John Deere engineers. Working on a free lance basis, he designed the aerodynamic body work for A.J. Foyt's 1981 Indianapolis race car. Don holds undergraduate degrees in engineering and industrial design. He began his career as a mechanical engineer at Ford Motor Company. Interform is an innovative multidisciplinary product design firm incorporated by six prominent industrial designers. The company's purpose is to help high technology management establish market position and credibility, extend product life cycles and increase profitability through effective product design that focuses on market needs.

42 %&>gl>§%&g/ k20S@ij A3£$/IL ISBJ 1VAM3JM. J7J7^ £fl»&*ra J J. $ %S nOfFitnGtea by President Reagan to the Board of Governors of the Fed Martha R. Seger, BBA '54, MBA '55, Ph.D. '71, former state banking commissioner, has been nominated by President Reagan to a seat on the Federal Reserve Board of Governors. The Fed, considered the nation's bank, is responsible for setting interest rates and monetary policy for the U.S. In a formal ceremony among geraniums and petunias in the White House Rose Garden, Reagan assured the audience that the bandage on Seger's left arm did not indicate he had to twist it to win her acceptance of the post. (She broke the arm in a recent fall.) Reagan said he was "delighted and honored" to name her to the $68,400-a-year post. The nomination, for a 14-year term starting retroactively from Feb. 1, 1984, is subject to Senate confirmation. Seger will, if confirmed by the Senate, succeed Nancy Hay Teeters, another former U-M student, the first woman named to the Fed Board of Governors in its 70-year history. The Senate Banking Committee is expected to hold confirmation President Reagan with Martha Seger after he announced her nomination to the hearings "expeditiously," according hoard of governors of the Fed. (API Wide World Photos) to Sen. Donald Riegle, D-Mich., a member of the panel. Seger is on the Economic chairman of the Economic Advisory Seger served for two years as state Advisory Board for the U.S. Council of the Republican Caucus banking commissioner, appointed Department of Commerce and of the Michigan Senate. by former Gov. William Milliken. In that post, she worked to do away with interest-rate ceilings. She also has taught at Oakland University, the University of Windsor, and the University of Michigan. With 10 years experience in commercial banking, Seger was vice president and chief economist for the Bank of the Commonwealth from 1974-76 and chief economist The University of Michigan for the Detroit Bank & Trust from Graduate School of Business Administration 1967-74. She is on the board of Alumni Relations directors for Comerica, Inc. Assembly Hall Building/Room 291 She is a member of the program Ann Arbor, Michigan 48109-1234 committee of the Economic Club of Detroit and a member of the National Association of Business Economists and the Women's Economic Club. Office of Alumni Relations NON-PROFIT ORGANIZATION Graduate School of Business Administration U. S, POSTAGE The University of Michigan PAID Ann Arbor, Michigan 48109-1234 ANN ARBOR, MICH. PERMIT NO. 144

Address Correction Requested

The Regents of the University Deane Baker Paul W. Brown Gerald R. Dunn Robert E. Nederlander Sarah Goddard Power Thomas A. Roach Nellie M. Varner James L. Waters Harold T. Shapiro (ex officio)

A Quiet Mover and Shaker his candidacy has made important endorsement doesn't sit well with Continued from page 23 contributions, especially his trip to Jackson. I hope we are still friends." Syria, but I think now his candidacy What about the future? running-mate, Walter Mondale, in is having a devisive effect upon Specifically the future for other his presidential campaign. But for black voters and has reached a point black presidential candidates? "I am Hill, this campaign has involved a of diminishing returns. This has not not sure that America is ready for a complicated personal choice — that been an easy decision for me. black president in 1988," says Hill, between Mondale and Jesse Jackson, "I think that the 'fairness' "but there are other important an old friend and fellow champion issue is a serious one in this positions in government. For of black causes. administration," continues Hill example, I would like to see a black "Jesse Jackson and I have known thoughtfully. "While I value the governor of a state, a black U.S. each other for 15 years," says Hill. control of inflation, the insensitivity senator, and/or a black secretary or "I marched with him in Chicago of the Reagan administration to the undersecretary of state. I think and worked with him on the Poor concerns of lower economic groups 1988 or 1992 might be the right People's March. I have hosted a make his defeat of paramount years for this." number of meetings for him here importance. I think Mondale can at Atlanta Life and I believe that defeat Reagan, but I know my

Cut Along This Line. Address on Other Side. Name Degree Year Please Help Previous Home Address: Us Update Our Records It would help us to keep our records timely if you would let us Phone know: 1. If you have moved recently, or 2. If you have found one of our New Home Address: "lost" alumni. Knowing how busy you are, we have included the postcard at left to make it as convenient as possible for you to help us keep up to date. Thanks very much.

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