ENTREPRENEURSHIP: That Goal Was Achieved

One day, RICOH 129 imagined collaborating with ALUMNI the world’s best MAGAZINE business schools.

It imagined that April-June 2013 students from these www.iese.edu schools could access to the right information, in the Jordi Canals Pedro Nueno Josep Tàpies and María Fernández Javier Zamora Building Companies That Maximize Your Board How to Weather the Slings and Big Data: How to Turn right place and at Generate Trust Potential Arrows of Fortune Information Into Value the right time. It imagined an excellent service for the future executives. ENTREPRENEURSHIP: That goal was achieved. TURNING IDEAS INTO ACTION

One day RICOH imagined change.dea

/ricohspain 900 818 302 BARCELONAIESE GLOBAL ALUMNI REUNI ON S AVE THE DATE: NOVEMBER 8 BARCELONAIESE GLOBAL ALUMNI REUNI ON S AVE THE DATE: NOVEMBER 8 C O N T E N T S

COVER STORY ENTREPRENEURSHIP: TURNING IDEAS INTO ACTION 8

IDEAS CROSSROADS U.S. ADVISORY COUNCIL

“HIGH-LEVEL LESSONS FROM EXPERIENCE”

Building Companies that Generate Trust Jordi Canals 18 DOING GOOD & DOING WELL CORPORATE GOVERNANCE !e Power of Maximize your Board Potential Working Together 36 Pedro Nueno 24 MBA CAREER FORUM FAMILY BUSINESS Searching for New Talent 44 How to Weather the Slings and Arrows of Fortune 8TH BANKING SECTOR MEETING Josep Tàpies y Optimism at Banking Sector Meeting 46 María Fernández Moya 26 SUMMER SCHOOL BIG DATA How to Turn Information Future MBAs Are Already Into Value Studying at IESE 48 Javier Zamora 30 40 AGENDA 52

2 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE PEOPLE PEOPLE

EGGERT GUDMUNDSSON (MBA ’97, AMP ’12) “We’d pay a high price PHILIP MOSCOSO AND PASCUAL BERRONE if we joined the EU” 54 58 TWO NEW ACADEMIC CHAIRS DRIVING BUSINESS RESEARCH AND INNOVATION

LUIS I. COLLANTES (MBA ’06) Albyn Medical: A new FINAVES healthcare initiative 62

IESE & YOU EXECUTIVE COMMITTEE ANNUAL MEETING 82 MIGUEL LÓPEZ-REMIRO (EMBA ’12), MORE EDUCATION, NETWORKING DIRECTOR OF THE UNIVERSITY OF NAVARRA MUSEUM AND ENTREPRENEURSHIP Connecting Art and Entrepreneurship 64 FOR ALUMNI AUTHORS 70

I joined the Association to support IE and the Alumni SE tion’s aims and Associa- to be a memberI forcontinue the Continuous Education Program sessions and the LIFE opportunities that mem bership gives me to meet- other alumni” WSJ BREAKFAST SERIES DYE-SUN DE S Leslie Moonves 2,800 WAAN (M BA ’08) PARTICIPANTS AT THE and John Donahoe 74 GLOBAL ALUMNI REUNION The sessions are really extraordinary CHAPTER NEWS 76 and broaden your For many horizons: it’s a luxury to of us the Association is 2,768 be able to a safe haven where we PARTICIPANTS IN YOU’RE IN THE NEWS 79 attend them” feel protected: a refuge CLASS REUNIONS ROSER VILARÓ (PDD ’10) that helps us to remain CLOSING CEREMONY 80 educated and informed” GLORIA PERRIER- CHÂTELAIN 35,758 (EMBA ’93) ALUMNI TOOK PART IN THE ASSOCIATION’S ACTIVITIES The gives you the opportuAssociation FINAL nity to discuss things -with experts and has helped me 40,044 to develop a framework for ALUMNI my professional career and ALFREDO PASTOR to deﬁne clear aims and objectives” Do We Need MAYTE FORJAN (PDD ’04) Economists? 84 COUNTRIES122 REPRESENTED Research excellence awards

Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 3 www.facebook.com/alumni.IESE www.twitter.com/IESE.alumni 129 General Circulation April-June 37,326 2013 International Circulation ALUMNI MAGAZINE www.iese.edu/alumni 31,401 (Spanish Edition) 5,925 (English Edition)

Editor Index of Companies Antonio Argandoña Executive Editor Aïda Rueda 88mph ...... 77 Eurogroup Human MiraBlau ...... 8 Managing Editor Accenture ...... 44 Resources ...... 8 N1 ...... 54 Olga Boluda Senior Editor, English Edition Amazon ...... 44 FCC ...... 44 Nestlé ...... 36 Stephen Burgen, Sally Davis Albyn Medical...... 62 Fnac ...... 26 PAD Escuela de Negocios ...... 74 Art Director Almirall ...... 44 Ford ...... 8 ParkHelp ...... 77 Enric J. Gisbert Allianz ...... 44 Gas Natural Fenosa ...... 44, 50 Pier 2 Marketing...... 51 Altaïr ...... 44 General Cable ...... 67 PPR ...... 26 Contributors Banco Privado do General Electric...... 8 PricewaterhouseCoopers ...... 8 Cristina Aced, Laia Antúnez, Marisa Bombardó, Mercedes Castelló, Clara Atlântico-Europa ...... 74 Goldman Sachs ...... 50 Regus Group ...... 74 Castillejo, Nicholas Corbishley, Sally Bank for International Google...... 30, 74 Saïd Business School ...... 36 Davies, Edu Ferrer, Alberto de Olano, Settlements ...... 46 Grameen Bank ...... 8 Schneider Electric ...... 44, 58 Alejandro Lavara, Álvaro Lucas, Javier BBVA ...... 46 Graphene Batteries ...... 36 Smarter Impact ...... 8 Pampliega, Marta Sardà, Larisa Tatge, Bertelsmann ...... 26, 44 Haier ...... 66, 74 Social Car ...... 8 Gemma Tonijuan, Miquel Utset Social Energy ...... 8 Blue Font ...... 74 Harvard Business School ...... 47 Cover concept Bonsai Enterprises ...... 8 Hazloposible.org ...... 8 Solvay ...... 74 Enric J. Gisbert Boolino ...... 8 HEC Paris ...... 36 Stanford Graduate Luis S. Ruiz Booz & Co...... 40 Hewlett-Packard ...... 8 School of Business ...... 47 Boston Consulting Group ...... 48 Hill Capital Partners ...... 74 StepOne ...... 8, 51 Editing Secretary Alejandra Arrocha BP ...... 74 Hope Project ...... 8 Strathmore Budgetplaces.com ...... 8 Hoss Intropia ...... 36 Business School ...... 51, 74 Photography CaixaBank ...... 36 Ikea ...... 26 Swarovski ...... 44 Javier Arias Canalsolidario.org ...... 8 INALDE ...... 77 Syngenta...... 44 Jordi Casañas Canteen ...... 74 Inderhabs Investment ...... 8 Telefónica ...... 8 Jordi Estruch Caprabo...... 8 ING Direct ...... 66 The Body Shop ...... 8 Miquel Llonch Pili Martínez CBS ...... 72 INSEAD ...... 36, 66 The Living Springs ...... 74 Roger Rovira Codorníu ...... 77 Intermon Oxfam ...... 36 The North Face ...... 36 Fotomobil.com Colegium ...... 8 King ...... 44 The Wharton School ...... 47 Compass Group ...... 58 Lagos Business School ...... 51 Tous ...... 8 Design and Layout Dupont...... 44 Librerías Bertrand ...... 8 Universidad de La Sabana ...... 77 Enric J. Gisbert eBay ...... 72 Lonesome George & Co...... 8 Universidad Illustrations Equity Bank ...... 77 LVMH ...... 26, 44 de Navarra...... 63, 67 Luciano Lozano Ernst & Young ...... 44, 46 Mango ...... 44 UEIA Generation ...... 8 (www.ilustracionesposibles.blogspot.com) ESADE ...... 36 Madbid.com...... 44 Wal-Mart ...... 30 Fhil Navarro Eurest ...... 58 Media Markt ...... 34 Yale University ...... 63 Advertising M&N Consulting -Antonio Moré Tel.: 93 544 12 34 Index of Alumni Printing Centro Gráﬁco Anmar

Abdulkarim, Mahir Ferrer, Jaime (G-EMBA ’07) ...... 8 Oriol, Rosa (PADE ’98) ...... 8 Published by Estudios y Ediciones IESE, S.L. (AMP ’12) ...... 74 Forjan, Mayte (PDD ’04) ...... 80 Parra, Catalina (MBA ’96) ...... 8 Depósito legal B.23.746-1963 Alarcón, Mar (PDD ’08) ...... 8 González de Riancho, Alberto Pathak, Richa (MBA ’11) ...... 36 ISSN 1138/2333 Alegre, Hugo (MBA ’91)...... 74 (PDD ’94) ...... 74 Pereyra, Manuel (IFP ’10) ...... 77 Awosika, Ibukun Gudmundsson, Eggert Perrier-Châtelain, Gloria (G-EMBA ’04 y GLP ’13) ...... 8 (MBA ’97 y AMP ’12)...... 54 (EMBA ’93) ...... 80 Balarezo, Eduardo Gutiérrez, José Martín Pershad, Devyani !e opinions expressed in the articles (GCLA ’09) ...... 8 (MBA ’96)...... 8 (MBA ’12)...... 36 published in this magazine are solely those Botet, Pere (PADE ’94) ...... 8 Gringaus, Ariel (GCLA ’10) ...... 8 Piferrer, Just (PDD ’07) ...... 77 of the authors. Articles may be reproduced, provided that the original source is indicated. Cebrián, Javier (MBA ’78) ...... 8 Hamel, Paul (G-EMBA ’09) ...... 51 Raventós, Mª del Mar Coles, Emma (MBA ’04) ...... 36 Hoogerwerf, Martijn (PADE ’01) ...... 77 Collantes, Luis I. (MBA ’06) .....62 (MBA ’06)...... 74 Rilling, Jürgen (MBA ’99) ...... 8 Collery, Arnaud (AMP ’12) ...... 77 Huber, Sven (MBA ’01) ...... 8 Rodríguez, Fernanda Corredoira, Santiago Jaramillo, Luis Fernando (G-EMBA ’03) ...... 8 (G-EMBA ’11) ...... 8, 51 (MBA ’86)...... 77 Sendagorta, Jorge De Swaan, Dye-Sun Kazim, Isaam (AMP ’12) ...... 74 (PADE ’90) ...... 80 (MBA ’08)...... 80 López-Remiro, Miguel Tous, Salvador (PADE ’98) ...... 8 IESE/University of Navarra Ehrensperger, Manuel (EMBA ’12) ...... 63 Velázquez, Victoria Alumni Magazine (PDD ’06) ...... 44 Lueth, Elisabeth (MBA ’10) .....36 (G-EMBA ’10) ...... 8 Avda. Pearson, 21. 08034 Barcelona Erceg, John (MBA ’96) ...... 8 Muñoz, Lucio A. (PDD ’09) ...... 8 Vilaró, Roser (PDD ’10) ...... 80 L]d&21+*-+,*((>Yp21+*-+,+,+ Cno. del Cerro del Águila, 3 Farias, Néstor (MBA ’68) ...... 8 Mwangi, James (AMP ’06) ...... 77 Westcott, Phil (MBA ’11) ...... 8 Ctra. de Castilla, km 5, 180. 28023 Madrid L]d21)*))+(((>Yp21)+-/*1)+ Numbers refer to the ﬁrst page of the article in which the alumnus appears. www.ee-iese.com

4 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE *&P4&#VTUBJOFTT4DIPPMTLICFMFDUT9*3364UPIDAD QSPWJEFXJSFMFTTOFUXPSLJOHUISPVHIPVUUIF DBNQVTGBDJMJUJFTJO#BSDFMPOBBOE.BESJE

9*3364 UIFXPSMEMFBEFSJOIJHI5QFSGPSNBODFXJSFMFTTOFUXPSLT YNPSFDPWFSBHF YNPSFCBOEXJEUI YNPSFDPODVSSFOUVTFST MFTTXJSFEOFUXPSLJOGSBTUSVDUVSF

7JTJUPVSDBTFTUVEJFT IUUQXXXYJSSVTDPN3FTPVSDFT$BTF4UVEJFTBTQY

%0.0*/'03.«5*$""1-*$"%" IUUQYJSSVTFEPNPOFU YJSSVT!FEPNPOFU E D I T O R I A L WORK, HAVE A GOOD TIME AND CREATE SOMETHING OF VALUE

ANTONIO o a large extent, this edition of the Alumni Magazine deals with en- ARGANDOÑA trepreneurship, innovation, getting things done or doing them in Editor of the Alumni Magazine another way. It also discusses how to prepare oneself to take this [email protected] step and to have the necessary support, both within and outside, who will ideally be close at hand and understand us. And, of course, howT to enjoy oneself. I’m certain that you will love the phrase quoted from Thomas Edison at the beginning of the cover story: “I’ve never worked a day in my life, it’s all been fun.” Imagine if you said “I’ve never had a day’s fun in my life, it’s all been work”? You’d throw yourself out the window. But fortunately, at IESE we are surrounded by people like you who know how to work and have fun, and to connect with others, to make life enjoyable and serve the client and create value (of course!) and oﬀer opportunities for personal and professional development to everyone associated with the company and have a positive impact on society. This last paragraph could serve as a summary of the article by Jordi Canals.

Pedro Nueno discusses how to get the most out of your board of directors. Josep Tàpies and María Fernández Moya examine the familiar but forever challenging subject of the survival and success of family businesses. And Ja- vier Zamora looks at the opportunities presented by big data. We continue to talk about innovation and entrepreneurship because the way things are in the world, they have become fundamental to business success.

There are more interesting topics in this edition. The good news from the Doing Good and Doing Well conference about what really is possible, the international programs, the key sector meetings such as banking and energy, as well as the ideas of Eggert Gudmundsson about leadership and the new academic Chairs and awards for our researchers. And, as always, You’re in the News, the part of the magazine that you produce yourselves. Thank you for that and your continued support of IESE and the Alumni Magazine.

6 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE In the latest www.ieseinsight.com/review

Back to Reality: Lessons From the Crisis What Will For Love or Money: What Are the Logics Driving Your Firm? It Take How Shareholder Activism May Improve Your Performance to Repair Responsible Investment: Ushering in Sustainable Capitalism Finance?PUBLIC The NewIDAD Competencies Required for CFOs 7

Plus... Overcoming time zone challenges Daniel Servitje in the global workplace CEO of Grupo Bimbo How to be an innovation architect “In globalization, Advice from lobbyists you participate on selling your ideas Haier: Will the Chinese or become appliance maker become No. 1? a victim.”

SUBSCRIBE ONLINE: www.ieseinsight.com/subscription

Avance Contenidos 16 Alumni ENG.indd 1 05/03/13 10:22 C O V E R S T O R Y

ENTREPRENEURSHIP: TURNING IDEAS INTO

CRISTINA ACTION ACED

8 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE Entrepreneurship takes many forms, but whether it involves creating apps, ﬁnancial instruments or investing in the social good, what entrepreneurs have in common is their role as a catalyst in turning possibilities into realities. Here IESE alumni reﬂect on the ups and downs of being an entrepreneur, demonstrating that it is as much a state of mind as it is a way of doing business.

Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 9 C O V E R S T O R Y

never worked a day in my life,” Thomas Edison said. “It was all fun.” This comment and Edison’s extraordinary career exemplify the spirit of entrepreneurship, a restless spirit that approaches life as an ad- venture, ﬁlled with opportunities, excitement, risk and, of course, failure. But then, to quote another“ great entrepreneur,I Henry Ford, “Failure is simply the opportunity to begin again, this time more intelligently.”

MAKING THE POSSIBLE REAL Entrepreneurs come in many shapes and forms. Edi- l son and Ford were both inventors and businessmen, men whose tinkering in workshops led to the founding of two colossi of American business: General Electric and the Ford Motor Company. Today, invention is more of a collective enterprise. Steve Jobs didn’t invent the iPhone, Apple did, but Jobs was undoubtedly the catalyst. And that is the true function of an entrepreneur, to be a catalyst: someone with the vision and determination to bring together the ideas, talent and finance to make the possible real. Prof. Pedro Nueno, who holds the Fundación Bertrán Chair of Business Initiative at IESE, says “the key thing is to spot an opportunity and be able to turn it into a profitable business proposition: this is fundamental to all entrepreneurship.” Prof. Juan Roure, the founder of IESE’s Network of Private and Family Offices Investors, says “entrepreneurship involves spotting opportunities and seeing how they can be made viable.” Entrepreneurship is in Javier Cebrián’s blood. Cebrián (MBA ’78) is an engineer who, before he became an investor, set up various national and international joint venture companies. He says that his entrepreneurial spirit comes from “a

JAVIER CEBRIÁN MBA ‘78

SANTIAGO CORREDOIRA G-EMBA ‘11

10 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE mixture of genes, education and circumstances.” His father passed on his taste for business adventures to his children. Cebrián also recognizes that Prof. Pedro Nueno nourished his enthusiasm for entrepreneurship. “Creating and devel- THE KEYS TO oping a new business requires a lot of optimism and energy ENTREPRENEURSHIP as well as a great capacity to survive in turbulent waters,” B e open-minded. says Antonio Dávila, professor and director of Entrepre- neurship at IESE. L ook for opportunities and turn Cebrián was one of the first investors in the IESE invest- them into business propositions. ment fund FINAVES, and he highlights the importance of B e ambitious and dare to dream. what it brings to the entrepreneurial spirit. “Entrepreneur- ship is one of the things our society needs most,” says Prof. Find finance. Nueno. B e clear about the project’s Cebrián is the president and founder of the Bonsai En- mission. terprises group of companies, which for over more than 10 years has been investing in the Internet and new technol- Get excited and be able to make ogy sectors from its risk capital wing Bonsai Venture Capi- others (investors, the team) tal. “We try to bring together the standards and ambition excited about the idea. of venture capital, the intimate involvement of the busi- Put together a good team. ness angel and the passion that entrepreneurs have to help other entrepreneurs”, he says. He believes that risk capital W ork hard. in Spain is “predominantly financial in its focus and often E njoy what you do. forgets the importance of the individual.” At the age of 50, Cebrián sees investment as “a way of continuing to work and learn” from new generations. “It’s a way of keeping yourself up-to-date,” says Prof. Nueno, holder of the Fundación Bertrán chair of Entrepreneurial Initia- tives at IESE. He says that becoming an entrepreneur in later life is more and more common because life expectancy is greater and people are staying healthy longer. Increasingly, WHAT DOES THE ENTREPRENEURS’ people with a couple of decades of corporate life under their ASSOCIATION DO? belt are deciding that it’s time to do something on their own Assessment by IESE’s faculty. account. “If you take early retirement at 55, what are you going to do with the rest of your life?” Nueno asks. Consultations with expert Age is not only not a limitation, it can be an advantage. entrepreneurs. First of all, because of the accumulated experience which Opportunity for presentations and can be of enormous help in starting a project. Secondly, ac- investor searches via FINAVES and cording to Santiago Corredoira (G-EMBA ’11), because the Private Investors and Family “you know yourself better, you know what you’re worth and Offices Network. you know your limitations.” Corredoira has reinvented himself several times over Special cycles within the Continuous during his professional career. After studying law, he worked Education Program: “Entrepreneur as a legal advisor for various companies. In 2001 he joined Initiative” and “FINAVES.” Lanetro, a project that was a victim of the dot.com bubble www.iese.edu/programacontinuidad and he ended up with a job that extended far beyond his legal role. “They needed somebody versatile who was able to negotiate the commercial aspects of the contracts and at the same time oversee the legal side of the company’s development.” Far from feeling out of his depth, Corredoira says he felt “very comfortable.” Later he took on an executive position in a technology company, Zed, and from there went on to work in Silicon Valley where he now runs a small consultancy, StepOne, which gives advice to Spanish companies that want to set up in the United States. Since then he has worked in various projects and says that now, at the age of 43, he really feels that he is the “founder” of his own project, adding that entrepreneur-

Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 11 C O V E R S T O R Y

ship came to him naturally. In San Francisco, where he managed the Spain Tech Center, an incubator run by the Spanish government to help technology start-ups get ADVICE ON HOW TO BE A going, he met “two great professionals” with whom he GOOD BUSINESS ANGEL shared interests and values and they very quickly de- A nalyze the project’s viability and cided that they wanted to work together on a project profitability. in the mobile entertainment sector. In fact, he says, it’s the team that really makes entrepreneurship exciting. A ssess the idea’s originality and “Finding the right people isn’t easy, especially when the quality of the people behind it. you’re young.” S hare values and ideas about doing John Erceg (MBA ’96), founder of the reservation business with the entrepreneurs. portal Budgetplaces.com, recommends launching a new project while maintaining your current job, whilst do- Don’t just look at the bottom line. ing so in an ethical manner. “Establish your company in Have an entrepreneurial spirit. your free time, in the time that other people spend on their hobby, without neglecting your current job.” Er- E njoy the day-to-day learning ceg worked in Hewlett Packard when he launched his experience. first company, which, in fact, failed after a short period B e prepared to share knowledge of time. “The two first business ideas I had failed, but I and experience. learned a lot from them,” explains the Californian, who stresses that failure is a “tough but great teacher.” In July Face up to the risks: the project 2011, after 10 years of bootstrapping, Erceg sold a ma- may turn out to be good, jority holding in Budgetplaces.com to Palamon Capital satisfactory or bad. Partners. The company, which has its headquarters in I nvest with other investors. Barcelona, currently employs 100 people. J oin a professional association INVESTING IN INNOVATION such as FINAVES or IESE’s Private Many entrepreneurs are investors. “There can be no en- Investors Network. l trepreneurship without investment,” says Jürgen Rill- S pread the diversity of your ing (MBA ’99), founder and managing director of MiraBlau, investments. a German investment and consultancy group. Rilling is an investor in FINAVES, IESE’s seed capital K eep aside capital for the day-to- fund created by Nueno in 2000. FINAVES “finances, with day running of the business. the help of private and institutional investors, business projects led by IESE alumni,” said Alberto Fernández Terrica- bras, the FINAVES director. Rilling worked for a variety of companies before becoming an investor. He says that, before backing a project, various factors have to be borne in mind, but the most important one ON JUNE 3 THE NETWORK OF PRIVATE is the people behind the enterprise. Prof. Christoph Zott AND FAMILY OFFICES INVESTORS says that “When it comes to attracting investors, successful entrepreneurs know that credibility is fundamental.” The CELEBRATES ITS 10TH ANNIVERSARY entrepreneurs involved have to be able to communicate the passion they feel for their idea. It’s also important that they and the investor have a shared business outlook. And, of course, you need to see that the project is in some way different, original and something that people want and are prepared to pay for. Rilling says that in this exchange, the entrepreneurs acquire “a friend who goes along with them” and an experienced consultant who can advise them on setting up projects as well as investors who make the project a reality, who get to know new sectors and have the satisfaction of contributing to making a dream come true. “Investing enriches you both as a person and professionally,” says Pere Botet (PADE ’94). Until 2001 he worked at the supermarket chain Caprabo, which he co-founded. He now administers Inderhabs Investment and also works with

12 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE JOHN ERCEG MBA ‘96

JÜRGEN RILLING MBA ‘99

PERE BOTET PADE ‘94

NÉSTOR FARÍAS BOUVIER MBA ‘68

FINAVES. He believes that his previous experience has been between Spain and Latin America. SAPIN Spain went out essential to his ability to contribute to other people’s projects. of business a year later but Farías Bouvier had already set “Having been in charge of a large business means you can of- up consultancies in Buenos Aires, Caracas and Rio de Ja- fer ideas and ways of doing things,” Botet says. He views in- neiro. So, overnight, he became an entrepreneur in search vestment not just from a financial point of view, but also as of projects and vessels. He now runs his consultancy busi- “delivering and creating value with the entrepreneurs.” ness, which also has an office in Brazil and partners in China He warns future private investors that “it is highly and India. possible that a project you back will fail” but adds that Over the years he has worked on many projects in a range “the ones that turn out well compensate for the ones of sectors such as pioneering telecommunications in Latin that don’t and you get a lot more than just money out of America, land communications, construction and soft- it.” In fact, if all you’re looking for is financial returns, ware. Farías Bouvier is a chemical engineer who, at IESE, he counsels against private investment because there acquired the knowledge he needed to put his ideas into prac- are other better options. tice. He describes investors as “innate explorers who are not Néstor Farías Bouvier (MBA ’68) became an entre- afraid of setting off on business adventures to unknown preneur at an early age. Once he had completed the MBA destinations.” He points out that those who risk their own program at IESE he went back home to Argentina with a money are much more committed to projects. business idea. The then Dean of IESE, Juan Ginebra, sug- Farías Bouvier is part of IESE’s Network of Private and gested that he should open an Argentina branch of the Family Offices Investors which he describes as, “a frame- SAPIN consultancy, which Prof. Ginebra worked for along work for discussion in which best practices are shared and with other business people. The idea was to build bridges create useful synergies and in which you acquire knowledge

Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 13 C O V E R S T O R Y

and experience to broaden your outlook.” He would like the network to operate in Latin America in order to continue building bridges between the two continents. According to Roure, the Network of Private Investors not only minimizes risks but allows investors to learn from each other. The professor also recommends diversification because “new projects always involve a certain amount of risk.” Furthermore, it gives investors a “more varied and enriching experience.” “These days firms want to grow profitably and intrapreneurship is an excellent way of achieving this,” says Prof. Mª Julia Prats, professor of entrepreneurial initiative at IESE. In fact, profitable growth is the main aim of intrapreneurship.

INTRAPRENEURSHIP There are three different levels at which you can be an l entrepreneur without leaving the company: through initiatives that help growth, the setting up of mould-breaking projects and strategic transformation. The key, explains Prof. Prats, is integrating entrepreneurial initiative inside the organization. This can be done through having a flexible organization capable of launching projects in a systematic manner to continue to regenerate the company, through acquisitions, as in the case of ISS; through joint ventures or corporate venture capital, or creating an project incubator. This is what Tele- fónica has done with Wayra, which was originally launched with the aim of speeding up innovative projects that emerged from within the company but which, for some time now, has driven external initiatives. Through the Wayra Academy and the organization of different events, the company looks for the best business ideas in the digital sphere to help them grow. Ariel Gringaus (GCLA ’10) was a member of the jury at WayraWeek Chile 2012. WayraWeek is an event carried out in diverse countries such as Spain, Germany and the UK. The goal is to select 10 entrepreneurial projects that later will receive support from Wayra. Gringaus is partner and founder of the Chile Entrepreneurs Association and of Endeavor, which gives recognition to entrepreneurs around the world. Gringaus has created various companies. His most recent venture was Colegium, which develops tools for managing schools. “The main schools in Latin America use this system for managing and communicating with families.” “We hope to be able to export it to Europe in the near future,” he says. Another thing to bear in mind are the available resources ARIEL GRINGAUS GCLA ‘10 and whether the company prefers to look for external financing or to use its own money. We shouldn’t lose sight of the fact that “the aim is to achieve sustainable growth,” says Prats. At PricewaterhouseCoopers, for example, they use intrapreneurship for internal development using their own funds. In the case of IBM, sometimes they use external finance, says Phil Westcott (MBA ’11) who joined the company in 2011. When he looked at the list of services, he was surprised to discover that some wanted to create a better and more intelligent planet. However, there weren’t any PHIL WESTCOTT MBA ‘11 projects designed to reduce global inequality. As a result of this, Smarter Impact was born. Westcott set it up in conjunction with his work as a strategy consultant.

14 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE Smarter Impact is a new approach that seeks inclusive renewable energy company. Later she worked with Grameen economic development, he says. It seeks to find solutions Bank in Bangladesh and after a few years working in China re- based on data that encourage economic development in the turned to Spain. On her return the first thing she did, almost least developed areas. For example, only 50 percent of people without thinking, was to buy an apartment and a car. A year in India have a bank account but 90 percent have a mobile later she realized she’d only filled the gas tank once and said phone. “This is a great opportunity because this connectivity to herself that this was “neither normal nor acceptable.” She is a source of useful data,” he says. He adds that the challenge then learned about the growing global movement for shared is to take advantage of, consolidate and make sense of this consumption and various car-sharing schemes that existed data so that leaders in all of the sectors have the information in other countries and decided to import the idea to Spain. In necessary to achieve inclusive economic growth, a task that July 2011 Social Car, a car-sharing scheme, was born. involves collaboration between business and governments. In spite of initial difficulties, within a year there were Getting an intrapreneurial project up and running is 3,000 car owners willing to rent their cars and a community neither a simple nor a linear process, warns Prats. “Ex- of 9,000 people interested in using them. Alarcón believes ecutives need to be prepared to face the setbacks that will that clients “are so satisfied they return” and even create occur during the process.” Furthermore, you have to deal links among themselves. with the company’s structural limitations (changing pro- Eduardo Balarezo (GCLA ’09) is convinced that small cesses and increasing flexibility without losing efficiency) decisions can lead to major change. With this philosophy, and overcome internal resistance on the part of staff and he created Lonesome George & Co. in 2006, which seeks to management (change mentalities and customs and create spark social change through education as an agent of change. incentives for new ways of doing things). Balarezo was inspired by Lonesome George, the last Nevertheless, there are mechanisms for incentivizing known Pinta Island Tortoise that lived in the Galapagos initiative within the company. According to Westcott, even Islands until his death in 2012. He warns when recruiting it is possible to detect the “entrepreneurial that “in recent years, human activ- spark.” Furthermore, entrepreneurial initiatives need to be ity has drastically altered ecosys- included in training programs and through mentoring. In this tems. We need a change, a respect, it’s highly recommended that employees be allowed new way of thinking and to dedicate some of their working week to their own projects acting that is more re- and to reward such initiatives through bonuses and promo- sponsible toward our en- tions, he says. Finally, he advises creating a platform to help vironment.” He launched seek finance because “in this way the employee will work on a project to prevent the their idea with the conviction that it can be put into practice.”

SOCIAL ENTREPRENEURSHIP Mar Alarcón (PDD ’08) has always been motivated by l the relationship between sustainability and maximizing resources. In 2005 she helped to set up Social Energy, a

MAR ALARCÓN PDD ‘08

EDUARDO BALAREZO GCLA ‘09

Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 15 C O V E R S T O R Y

extinction of other species, because “there is always a Lone- some George to fight for, somewhere nearby.” IESE’S SUPPORT FOR Social Car and Lonesome George & Co. are examples of social businesses because its emphasis is on social rather ENTREPRENEURS than financial benefits. “Social entrepreneurs typically put The school has various bodies that their companies at the service of society. Creating com- deal with entrepreneurial initiative: panies with a clear social mission gives them an ethical and moral commitment to society,” says Lucio A. Muñoz Entrepreneurship and Innovation Center (EIC) (PDD ’09), the founder of Eurogroup Human Resources www.iese.edu/eic and author of the book The New Socially Responsible Entre- preneur. “Of course this doesn’t mean you forget to be fi- G lobal Entrepreneurship Week www.gewspain.es nancially profitable given that both concepts are perfectly compatible.” Risk Capital Society FINAVES www.iese.edu/finaves “You can’t just focus on the social aspect. If you want to guarantee sustainability, you have to keep an eye on Private Investors and Family Offices the financial aspects too,” says Prof. Fernández Terri- Network www.iese.edu/businessangels cabras. The product or the service being offered must be of good quality and sold at a reasonable price because “no Bertrán Foundation Chair of one is going to buy products just because they are social if Entrepreneurship www.iese.edu/es/claustro-investigacion/ they’re not any good,” he says. catedras/fundacion-bertran As in any other company, the aim is to create value for interest groups or stakeholders (shareholders, employees, Entrepreneurship Program in conjunction with charitable foundation clients and suppliers). The difference is in companies with “la Caixa”: a social mission “the social aim becomes another stake- obrasocial.lacaixa.es/ambitos/ holder,” says Sven Huber (MBA ’01). He is a partner and convocatorias/emprendimientosocial_ founder of boolino, a social network aimed at parents who es.html want to encourage their children to read. M BA and EMBA Entrepreneur Clubs “Developing the reading habit early on affects cognitive – MBA: www.iese.edu/es/mba development and learning ability in children, and so en- – EMBA: www.ceemba.org couraging the habit extends their educational and profes- Social Entrepreneurship blog sional options,” he says. Although at the moment it only blog.iese.edu/socialentrepreneurship exists in Spain, boolino has an international outlook and in the course of 2014 is expected to begin operations in Latin IESE Entrepreneurs & Venture Capital America and Europe. Hub on LinkedIn www.linkedin.com/groups/IESE- Huber encourages anyone who’s thinking about Entrepreneurs-Venture-Capital- launching a project with a social mission to do so because Hub-58496 “professional satisfaction has much more to do with the IESE Insight Business Knowledge Portal content and the milieu of your work than with the economic aspect,” as long as you can cover the basic necessities. www.insight.iese.edu After a decade working for the Bertelsmann group, where IESE Publishing Case Studies Website he held various executive posts, Huber felt the need to set www.iesep.com up his own project. He chose the book sector because it was one he knew well, having been director general of Librerías Bertrand. He says the key factors for establishing a project is the creation of the team, “learning to get a lot out of limited resources” and obtaining finance, which he describes as “not easy.” This is one of the main problems that entrepreneurs stum- ble upon when they try to establish their projects. Aware of this reality, Fernanda Rodríguez (G-EMBA ’03), Jaime Fer- rer Dalmau (G-EMBA ’04) and Pablo Turletti (G-EMBA ’07) have created the Hope Project, which aims to create a meeting point between entrepreneurs and social investors. This digital platform initially had the support of Victo- ria Velázquez (G-EMBA ’10), who as strategic advisor, turned it into a means of impact investment for social entrepreneurs, who, as well as getting financial support,

16 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE can find other types of support such as material resourc- In spite of the crisis, Parra believes that “dozens of so- es (someone who lends some office space or computer cial entrepreneurs” are emerging and her new project, UEIA time) and volunteers willing to lend a hand. Generation, is aimed at these entrepreneurs. It is the first Catalina Parra (MBA ’96) and José Martín Gutiér- social entrepreneurship accelerator based on new technolo- rez de Cabiedes (MBA ’96) also discovered that the gies in Spain and one of the few that exist in the world. It Internet is the perfect place to be an entrepreneur. In has already received 100 proposals of which only 10 have 1999 they created Canalsolidario.org, “the first vertical reached the incubation phase, although they expect to seek website in the world of social causes” says Parra. They out more. They don’t only offer finance but also training. later set up Hacesfalta.org, a website for volunteers Parra and Martín Gutiérrez set out as a couple to be which puts them in contact with NGOs. Since then they entrepreneurs. “There are even multinationals that have have launched various communal projects to encourage emerged out of marriages,” says Nueno. One example is interaction and social participation in social causes us- Tous, the business founded by Salvador Tous and his wife ing new technologies. Rosa Oriol (PADE ’98) and which is currently run by the “Our function is to be catalysts between society, com- third generation of the family. panies and NGOs so that good things can come of it,” All of these examples show that the entrepreneurial spirit Parra says. She adds that it’s essential that social busi- is not dependent on age or occupation, nor on personal or nesses have a clear mission and know how to commu- professional status. The first step towards being an entre- nicate it to their collaborators because this will be the preneur is wanting to do it. After that you need to under- main driver of their activity. Teamwork is fundamental. stand that success is not the key to happiness, but rather the “Social entrepreneurs have to understand that they are other way round. As Anita Roddick, founder of The Body not the key player in the initiative that they have set in Shop put it: “Success to me is not about money or status or motion but rather a part of the collective that succeeds fame, it’s about finding a livelihood that brings me joy and in taking it forward.” self-sufficiency and a sense of contributing to the world.”

LUCIO A. MUÑOZ SVEN HUBER PDD ‘09 MBA ‘01

JOSÉ MARTÍN GUTIÉRREZ DE CATALINA PARRA CABIEDES MBA ‘96 MBA ‘96

FERNANDA RODRÍGUEZ, GEMBA ‘03 SERGIO SÁNCHEZ JAIME FERRER DALMAU, G-EMBA ‘07 VICTORIA VELÁZQUEZ, G-EMBA ‘10

Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 17 I D E A S BUILDING COMPANIES THAT GENERATE TRUST

JORDI CANALS he financial crisis business leaders, not on the fragile Dean, IESE that began in the foundation of public relations but summer of 2007 through a renewed understanding has escalated into of the firm’s mission in a dynamic a full-blown eco- society. A reflection upon the need nomic crisis with- Finance has become the domi- out precedent in nant dimension of business. Fi- to rebuild the vision of the recent history, one nance is important, of course, but it companies and leadership that challenges the functioning of is not the only relevant dimension Tthe economy and the political sys- of management. More specifically, that directly contribute tem in democratic societies. the demand for an appropriate re- to the development of a This crisis has created a severe turn on invested capital is fair, but dynamic society. economic contraction attributable a firm will only be able to generate to the failure of governments to re- good returns if it invests in the long gulate the financial system; unsus- term, gives customers good service, tainable public deficits; business develops its employees appropri- misconduct; and a lack of corporate ately, and so cements its reputation sensitivity toward unemployment in society. The financial dimension and other social problems. As a re- of business is therefore not the only sult, the role of business and gover- one to be considered. In fact, one nment, and their ability to build a of the lost values that needs to be prosperous and fair society, are in recovered in listed companies is question. that of shareholder commitment, In this context, governments attracting shareholders who seek appear to have succumbed to the long-term value. lure of the short term, disregard- The dominance of finance has ing the longer-term interests of also led to an overemphasis on eco- society. Their manifest failure to nomic incentives that motivate top solve today’s problems, coupled managers to achieve short-term fi- with systematic neglect of the long nancial results. Such incentives may term, have fueled a growing distrust have had a perverse effect. The sub- among citizens. Many voices call for prime crisis in the United States, civil society to play a stronger role; the mis-selling of bank products in yet in times of crisis few social ac- Europe, or the recent LIBOR scan- tors have the capacity to mobilize dal are too important to be treated collective efforts. Despite these as isolated incidents. difficulties, now more than ever While it is true that some incen- D=9<=JK@AHKLJ9L=?Q;GJHGJ9L= it is vital to rebuild the reputation tive systems currently in use are not GOVERNANCE of companies, entrepreneurs and intrinsically perverse, the evidence

18 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 19 I D E A S

A POSITIVE VIEW shows that business and society not only opportunities for develop- need leaders with ethical values that ment (which are always welcome) OF THE FIRM respect the long-term good of the but also opportunities to grow as a firm, and are founded on truthful- person, thanks to the positive learn- HIGHLIGHTS ness, justice, loyalty and diligence. ing that takes place in the context of The modern company is one of professional relationships. Profes- COMPANIES AS the great social institutions of the sional growth and development of 20th century. It has generated new human virtues help people improve, A GROUP OF investment, created jobs, stimulat- find meaning in their work, and real- ed innovation, helped solve many ize their full potential. PERSONS WHO social problems, and driven unprec- The fifth is that a firm that oper- edented growth. It is true that a few ates in this way has a positive im- SEEK CERTAIN firms in have had a negative impact pact on society through the goods in recent years; but most continue and services it offers, through the GOALS to be solid pillars of society. Against wealth it generates, and the person- this background, companies will al development it stimulates. A firm win back the credibility a reckless that acts in this way will grow, create few have squandered if we redefine employment, invest, and pay taxes. the notion of the firm, based on the It will not put itself above the law, value of its contribution to society. but will pursue the common good. Furthermore, a company that A POSITIVE NOTION OF THE FIRM acts in such a way deserves the In opposition to an exclusively trust of society. If, in addition, such l financial view of the firm, com- a company decides to undertake panies are groups of people who philanthropic activity related to seek certain goals. Companies offer its specific objectives that has an goods or services to customers and impact on society, its transforma- create long-term economic value in tive power may increase. Yet the a context that allows people to grow. essence of a company’s contribu- A firm so conceived cannot but have tion is not the result of so-called a positive impact on society. corporate social responsibility poli- Several aspects of this definition cies. Any company that does all the are essential to a new view of the things we have mentioned is already company. The first is that the firm having a positive, transformational is a human reality, i.e. it is made up impact on society. of people with differing aspirations A few companies may occasion- and motivations, which senior man- ally lose sight of the substance of agers must take into account. The their contribution to society (en- second is that these people coordi- capsulated in the notion of the firm nate their efforts in the firm in order proposed here) and be content with to serve customers. The third is that, the incidentals, i.e., a few social ini- in serving customers, the company tiatives that may be good in them- must also create economic value; in selves but that are not crucial to the other words, it must earn more than company’s mission. Such initiatives it spends in satisfying its customers. can sometimes be a good comple- Moreover, a company must create ment; other times, however, they economic value in the long term, merely serve to conceal unclear ob- which makes it all the more impor- jectives, or else hide a lack of con- tant to ensure – through innovation, viction regarding the company’s education, continuous improve- real contribution to society. ment, and investment – that the Some exaggerated notions of so- company’s results are sustainable. cial responsibility can be countered The fourth aspect is that, in do- by emphasizing the positive impact ing all this, the firm must be able to a company can have on a society offer the people who work in it an just by doing what it is set up to do. opportunity to grow professionally In other words, the true mission, or and personally. Growth here means ultimate purpose, of a company can

20 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE no longer be misrepresented as be- ies: the commercialization of social ing only to maximize shareholder life, by turning economic value into A FIRM value. The mission of the firm in the foremost guide for our behavior. society is to be an organization of A company that adopts a multidi- 1 …is made up of people people who work to achieve certain mensional view of its mission is also a with aspirations and motiva- objectives, both economic and non- model for society as a whole, insofar tions. economic, and to afford those who as it helps put economic objectives in participate in the process the oppor- proper perspective. 2 …is geared towards tunity to improve as professionals serving customers. and as people. THE ROLE OF ENTREPRENEURS This is a great attribute of the AND SENIOR MANAGEMENT 3 …needs to create economic firm: it catalyzes a process by which According to Peter Drucker, value not only in the short customers’ material needs are sat- l the function of the manager is term, but also in the long term. isfied, while at the same time gen- to set goals, implement policies to erating economic value for share- achieve those goals, and organize 4 …offers its employees an holders and providing a context in and mobilize people to work to that opportunity for personal and which people are able to grow as end. Though this definition remains professional growth . professionals and as human beings. valid, it is incomplete. A senior man- This dimension implies an ethical ager, or business leader, must do 5 …seeks to have a positive view of the company: only on ethi- what Drucker suggests, but for one impact on society. cal foundations is it possible for a clear reason, namely, to accomplish company to achieve sustainable the particular company’s mission. human development, genuine cus- This notion shifts attention away tomer service, and a positive im- from the view of the CEO or senior pact on society. manager as someone focused main- A company that has this orienta- ly on getting results. Results are tion may face more demanding chal- important, but we must remember lenges, but it will also have two ex- that there are many different dimen- traordinary assets: the commitment sions of results to be considered, of its people, and its reputation in and also that it can never be a mat- the eyes of customers, shareholders, ter of getting results at any price. At and society at large. The demands the same time, this notion reminds placed on a company that frames its us that a good manager must also task in this way are enormous. On achieve results; otherwise, the spe- the other hand, it will know that it cific function of the manager would has committed professionals and, be neglected. also, the most valuable asset any or- Once again, the company’s mis- ganization can command, namely, a sion helps us delineate more pre- good reputation. cisely the function and role of a It is no exaggeration to say that senior manager. A senior manager’s the loss of reputation of certain efforts will be directed to ensuring companies has been due not only to that the company’s long-term mis- alleged misconduct by some manag- sion is accomplished????. The mis- ers but also to their having reduced sion is not a constraint but a plat- their mission to strictly financial form that gives stature to a senior goals. Companies that have a clear manager’s work. understanding of their true role in This notion of the firm highlights society are extraordinarily impor- that a company is first and foremost tant today; they are in the best pos- an organization made up of people. sible position to convey the message The human dimension becomes that a business firm is a long-term the core of the firm. Enabling the project, aimed not only at achieving company’s people to grow and im- economic results but also at having prove must be an explicit goal of the a positive social impact. work of any senior manager. People A notion of the firm such as the improve through the company’s one outlined here also addresses an ordinary activity and through the acute problem facing Western societ- exercise of their particular function

Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 21 I D E A S

in the company, i.e., serving custom- THE FIRM IS KEY KEY ROLES OF SENIOR ers, whether directly or indirectly, TO BUILDING TRUST IN SOCIETY MANAGEMENT and thereby generating economic The current financial crisis of value. A positive idea of the person lthe Western world shows a cri- i Develop the mission that helps understand people’s motives sis of ethical values, manifested in the company has in society. and use incentive systems that ap- a lack of faith among citizens in the peal to their better nature, so that ability of governments and com- iPeople development offer they work in a cooperative way; in- panies to solve the problems that a long-term perspective. duce them to commit to a project; beset us. The solution to this crisis i Professional excellence. correct them when their work is not will not come only from wise poli- up to standard; and deploy a whole cies that get the economy back on i Decisions based on ethical range of core human virtues, from its feet but also from the eﬀorts and values. justice to prudence. commitment of large numbers of This view also stresses the need individual companies and citizens for professional competence in who work to build a better society. management. Without profession- Firms must play a role in a dynam- al competence a person can neither ic society and are therefore key to serve customers well, nor generate rebuilding trust. At the same time, economic value or manage a group businesses today face the added dif- of people eﬀectively. Management ficulty of weak domestic markets competence is acquired through ex- in many countries, strong inter- perience, and also through training national competition, and credit and lifelong learning, in regular edu- constraints that prevent them from cational programs or in interaction taking on new projects. with other senior managers in other Entrepreneurs and senior man- companies and industries. agers need to be able to recognize A senior manager with this view the problems, but without being puts into practice a set of core ethi- overwhelmed by them. They must cal values: concern for each person prospect for new markets, invent who works in the company; a sense and launch new products, and dis- of justice in dealing with customers, cover new ways of serving custom- employees, suppliers, and society ers better and more effectively; and at large; vision to propose forward- in the process develop magnificent looking projects; strength to tackle professionals. Doing all this will complex tasks or acute problems; help to build trust. humility to admit mistakes and the But it may not be enough. To possibility of personal fragility; pru- bring about a sustainable recovery dence not to make hasty decisions of trust, companies – especially or unnecessarily delay the solution those most in the public eye – must to conflicts; and magnanimity to renew their commitment to a posi- make decisions without being guid- tive notion of the company, cou- ed solely by personal preference but pled with a desire to have a posi- also by the common good. tive impact on the common good Orientation to serving others is an- of society. This does not demand other key attitude. An entrepreneur great economic resources; what it or a senior manager needs to have a demands is a new management’s very clear service orientation. Just mindset. Now more than ever, the as a surgeon, with all the experience well-being of citizens and the recov- and knowledge that are vital for the ery of trust depend to a large extent exercise of the surgical profession, on the performance of companies must still cultivate the dimension and the work of entrepreneurs and of service to the patient and the pa- senior managers. The good news is tient’s health, so a senior manager, that neither companies nor senior MORE INFORMATION: :mad\af_j]kh][l]\[gehYfa]k$Bgj\a;YfYdk& too, must cultivate this essential atti- managers are called upon to do any- ;YeZja\_]Mfan]jkalqHj]kk$*()(& tude. It has a considerable impact on thing extraordinary, merely to per- LgoYj\kYf]ol`]gjqg^l`]Çje$BgYf=fja[Ja[Yjl Yf\Bgk]hEYjYJgkYfYk$::N9>gmf\Ylagf$*()*& the company’s reputation and to the form in full their mission and role in management profession. society today.

22 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE FASTFORWARD_2012_Text_OK.pdf 1 14/12/12 13:33

THE WORLD IS MOVING FAST BE FASTER

CMY

FAST-TRACK YOUR The Fast Forward Program gives executives and their companies an immediate boost to compete more effectively. BUSINESS GROWTH A wide variety of parallel sessions allows you to design your AND LEAD YOUR individual or team program. Keynote and plenary speakers will inform and inspire you as you develop a new vision for your ORGANIZATION INTO company’s future. THE FUTURE

New Program. Barcelona, May 27-31, 2013.

WWW.IESE.EDU/FASTFORWARD BUSINESS SCHOOL IN THE WORLD for Executive Education [email protected] 1 Financial Times, May 2012 I D E A S CORPORATE GOVERNANCE MAXIMIZE YOUR BOARD POTENTIAL

PEDRO NUENO s the board an asset or a assess the extent to which the man- Professor of liability? Shareholders agement performs well and if at some Entrepreneurship, IESE Business School would like the board to be point there is a need to develop, add or an asset. But this requires improve speciﬁc management skills. that it is established in the For successful governance right way. The objective of a SHAREHOLDERS’ VARIED company is to create value PERSPECTIVES the board of directors in a sustained way. Share- There are different types of should embrace a wide holders have invested their resources l shareholders, however. The mi- Iin the company and expect the value nority shareholders of listed compa- range of experience, abilities of these resources to grow, and they nies, for instance, want total and im- and outlooks that are would like to be able to recover the mediate liquidity. If they need their unlikely to be found in a profits on their investment when money for another investment, for they need them. example, if they feel at a given mo- single board member. To create value a company needs ment that it may be better to invest continuous innovation, growth, cor- in real estate, they want to be able rect investments, international de- to convert their shares into cash in- ployment and to be able to benefit stantly. Other investors may have from opportunities that may appear a longer-term perspective and may (acquisitions, diversifications). All prefer to invest in funds that contain these things should happen within a a basket of shares from listed com- solid ﬁnancial framework that gener- panies. They trust the evolution of ates and uses cash while maintaining the basket in the medium term. But a solid financial structure. In turn, there are also shareholders of fami- this means that the company has to ly-owned companies who may have a be capable of making good use of all much longer time perspective, trust- the options available in capital mar- ing in the accumulated value in the kets with all their alternatives (equity, company that becomes the reposi- venture capital, private equity, short- tory of the family’s wealth. term debt, long-term debt, bonds, The bigger the shareholder’s com- listing on the stock exchange). mitment to the company, the greater The objective of a board is to make the pressure on the company’s board. sure that all these things happen in The members of the board of family- the company in a sustained, balanced owned companies may have to answer strategic way. The board may be un- detailed questions from the family and der less day-to-day pressure than the may need to adapt their decisions to management and can help to apply the specific regulations established the necessary pressure on different by the family with regard to access of ;GJHGJ9L=?GN=JF9F;=:G9J areas at different times with a long- family members to the company; to its

24 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE cession, and distributing the wealth bers to know everything. What’s im- created or accumulated versus using portant is the overall content of the IN A FAMILY it for business diversification. Com- board. As the company evolves, the pliance with family-specific expecta- board can be enriched as necessary BUSINESS THE tions is not easy and some outstanding through board member rotation. COMPANY IS THE board members of listed companies Experience has shown that a certain have not performed so ably in well- renovation of the board is required, REPOSITORY OF known family-owned companies, and but to carry this out may entail a reg- have had to leave the board. ular professional assessment of the THE FAMILY’S For successful governance the board and its members. board should include people with a Fortunately, today we have a lot WEALTH variety of perspectives (industrial, of knowledge about how to form a international, family-owned com- board, and its operation and assess- panies, listed companies, entrepre- ment. The correct application of this MORE INFORMATION: neurial ventures, financial markets, knowledge can positively affect the K`gjl>g[mk]\Hjg_jYe2“Maximize your Board’s understanding of the economy). It’s board’s performance and, as a result, Potential”$^jgeBmf],%/$:Yj[]dgfY ooo&a]k]&]\m'EQ:H not necessary for all the board mem- that of the corporation.

Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 25 I D E A S FAMILY BUSINESSES HOW TO WEATHER THE SLINGS AND ARROWS OF FORTUNE

JOSEP TÀPIES amily businesses holding may take a variety of forms. Professor Strategic play a central role Ownership revolves around the Management, IESE Business School in the economic twin axes of the needs of the com- development and pany within the legal framework of recovery of any the country where it operates and MARÍA FERNÁNDEZ MOYA country and family- what the family wants. IESE’s Researcher to owned businesses There is a diverse international Chair of Family-Owned make up the major- picture. For example, some com- Business ity of companies everywhere in the panies such as IKEA and Bertels- world.F Their business models are mann are ultimately owned by a always based on long-term thinking foundation. Swedish company Continuity and long-term that allows them to face the vicissi- IKEA, founded by Ingvar Kam- strategic thinking contribute tudes of economic life more calmly prad, opened its ﬁrst shop in 1958. to making family businesses than other businesses. As this long- In 1982, the founder decided that it term thinking has concrete results, should be owned by a foundation, the lifeblood of society and in this article we look at some key the Stichting INGKA Foundation, the bedrock of sustainable aspects of what makes up a family as a way of guaranteeing the com- business. pany’s independence and long-term economies. approach. Likewise, 80.9 percent OWNERSHIP STRUCTURES of the German company Bertels- For a business to be defined as mann, the third biggest publisher l a family enterprise, the Euro- in the world, is owned by a series of pean Group of Owner Managed and foundations (Bertelsmann Stiftung, Family Enterprises (better known Reinhard Mohn Stiftung, BVG Stif- by its French acronym GEEF) in- tung). The remaining 19.1 percent sists that the family must have a of Bertelsmann AG is in the hands of >9EADQ:MKAF=KKGOF=JK@AHD=?9;Q sufficiently large holding for them the Mohn family. However, 100 per- KM;;=KKAGF>GMF<9LAGFK<=;AKAGF to influence important decisions cent of the voting rights are held by 9F9DQKAKKLJ9L=?Q about the company. This majority another society, Bertelsmann Ver-

26 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 27 I D E A S

family office, to manage ex profeso “IN MY VIEW, THE LONGEVITY OF OUR COMPANY IS DUE TO US the family’s assets, both material TREATING THE FAMILY BUSINESS AS SOMETHING PRECIOUS AND and human, and at the same time VALUABLE. WE CARE FOR IT FOR YEARS AND THEN WE PASS IT help to pass the legacy on from generation to generation. ON TO OUR SUCCESSORS, HAVING IMPROVED IT AS MUCH AS POSSIBLE.” THE SUCCESSION Bertrand Passot, president of Revol Porcelaine, founded in 1789. The succession is the keystone l and sine qua non of the survival “TRADITION AND INDUSTRIAL HISTORY IS IN THE DNA OF OUR of a family business. When dealing BUSINESS. THIS IS WHAT HELPS US TO RECOGNIZE WHAT NEW with the issue of succession it’s vital IDEAS OR CONCEPTS CAN PROMOTE LASTING DEVELOPMENT AND to bear in mind: CREATE ADDED VALUE.” • The succession is anticipated Federico Falck, president of Gruppo Falck, an Italian company established 1906. and therefore can be planned for. Kgmj[]2ooo&`]fgca]fk&[ge • The succession in terms of ownership and management need not occur simultaneously. • Leadership succession is more waltungsgesellschaft (BVG) which complex than the above. aims to maintain the fundamental Planning the succession is a management style and corporate necessary – though not the only – culture.1 BVG has six shareholders: condition for achieving an orderly three Mohn family members and transition from one generation to three external. another. A badly planned or badly Once the ownership structure managed generational transition has been defined, family business- will lead to problems and could es need to ensure that they have a have catastrophic consequences for management structure that facili- both the company and the family. tates the governance of the com- The family must decide what pany and the family. type of family business they feel most comfortable with. The family MANAGEMENT STRUCTURE can be involved at various levels of Governance structures are management but what they can’t l central to running any busi- renounce is ownership. Everything ness. A single administrator or a else can be sub-contracted, though management committee has to that’s not ideal. If the family wants oversee the good management of to manage the business they need the business. In family businesses to design a framework for incorpo- we also have to take into account rating family members and estab- the management and organization lish what conditions - such as age, of the family itself. This task is usu- education and experience - family ally carried out by a Family Assem- members must fulfill in order to oc- bly or Council. cupy positions within the company. The Family Assembly is the body Family members should never be that represents the entire family, forced to join the company and the whether or not all the members are next generation’s freedom must be directly involved in the business. respected. The Family Council comprises fam- Policies followed by family busi- ily members chosen by the family nesses include demanding the nec- itself with the aim of maintaining essary levels of education to occupy the unity and commitment of the posts, acquiring experience work- owning family, unifying positions ing in non-family businesses and within the family so that it speaks designing a career path within the with a single voice. Sometimes, in company so that the successors addition to these governing bod- know the company well. For exam- ies, the family may decide to create ple, François-Henri Pinault, son a company, known generically as a of the founder of the company Fran-

28 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE çois Pinault and currently president the board, along with well-known PASSING ON and CEO of the multinational PPR2 personalities such as Bernadette – which owns brands such as Alex- Chirac, leading business figures THE LEGACY OF ander McQueen, Boucheron, Stella from the luxury sector such as Di- McCartney, Yves Saint Laurent, ego Della Valle, as well as mem- THE BUSINESS Fnac and Puma – began his career in bers of family businesses acquired the company in 1987 as a salesman in by the conglomerate, such as Gilles TO THE NEXT the import department and in retail Hennessy.4 sales for the Evreux brand within GENERATION Pinault Distribution. From then on THE LEGACY he rose through the group, holding Long-term thinking is part of GIVES THE the posts of president of Pinault l the essence of family business- Distribution, president and CEO es. The aim is to pass on the legacy OWNERS A of FNAC, co-director of Financière of the business from generation to Pinault until 2005, when he was ap- generation and this gives the owners LONG!TERM pointed president and CEO of PPR.2 a long-term outlook that helps them to avoid being blinded by the lure of OUTLOOK BRINGING IN OUTSIDE TALENT short-term gains. Projects based on a Attracting and holding on to long-term approach bring wealth and l outside talent is useful and en- value to society as well as the family. riching and usually benefits family According to a recent study car- businesses. Some family business ried out by Credit Suisse based on people forget that, while ownership 280 family enterprises in 33 coun- is hereditary, a gift for management tries, this long-term approach is is not. Ignoring this has predictable the most important factor in the consequences. companies’ success.5 The pursuit Once a company reaches a certain of financial and social sustainabil- size it clearly needs to bring in out- ity is the leitmotiv of family firms. As side professionals. There are mo- they are imbued with this mentality, ments in family businesses when family firms pay special attention to the part played by outside profes- issues of social responsibility and sionals can be crucial. During the philanthropy, whether on the part succession process, for example, a of the firm or the family. trusted professional can help to se- It’s not just a question of inheri- cure an orderly transition by acting tance, but of receiving and accepting as a bridge between generations. the legacy. As well as being a source Having professionals on the of wealth, this legacy also embodies management committee or the values, beliefs, principles and ways board can enrich decision-making of doing things that are passed on and make it more dynamic. Big mul- through generations. Family mem- tinational family businesses em- bers see themselves as custodians ploy top-level advisors. Walmart, of this legacy, with a responsibility which began life as a single store to pass it on to the next generation. when it was founded in Arkansas by The guiding idea is to maintain the Sam Walton in 1962, was by 2010 tradition and the identity of the the biggest company in the world, business and the family, without according to Fortune magazine. losing its capacity for renewal. Walmart is still a family business, now in its second generation, al- )&ooo&Z]jl]dkeYff&[ge':]jl]dkeYff'K`Yj]`gd\]j% Kljm[lmj]&`led though only two family members, MORE INFORMATION: *&ooo&hhj&[ge']f'hj]kk'Zag_jYhà]k'ZgYj\% Tim and Robson Walton, sit on \aj][lgjk'^jYf[gak%`]fja%hafYmdl Qgm[Yf^gddgol`]hjg^]kkgjgfàkZdg_gjgf the board.3 In the case of LVMH, Loall]j2 +&OYdeYjl¿kZgYj\akeY\]g^).e]eZ]jk& Zdg_&a]k]&]\m']ehj]kY^YeadaYj a leader in the luxury sector, the Kgmj[]2`llh2''afn]klgjk&oYdeYjlklgj]k&[ge'h`g]fap& 8Bgk]hLYha]k r`led7[5))*/.)h5ajgd%_gnZgYj\ president and CEO is its founder J]Y\àk[Yk]klm\a]kYl2 ,&ooo&dne`&[ge'afn]klgj%j]dYlagfk'_gn]jfYf[]' ooo&a]k]h&[ge Bernard Arnault but two of his ZgYj\%g^%\aj][lgjk children, Antoine Arnault and 9[imaj]l]Y[àf_na\]gkYl2 -&¼>YeadqZmkaf]kk]k2KmklYafaf_h]j^gjeYf[]½$ ooo&]ehj]kY^YeadaYj%a]k]&[ge Delphine Arnault, have seats on J]k]Yj[Àfklalml]$;j]\alKmakk]$K]l]eZ]j*()*&

Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 29 I D E A S BIG DATA HOW TO TURN INFORMATION INTO VALUE

JAVIER ZAMORA nformation is power, but source is the information from sen- Lecturer Information only if you know what to sors. Anyone using a smartphone is Systems, IESE Business School do with it. We have now en- generating huge amounts of infor- tered into the era of what is mation. A transaction carried out called “big data,” data that using a mobile provides a lot of in- We now have access to goes far beyond the trans- teresting information. First there is actional data that most information about your location, more data than our systems companies’ information but there is also information are designed to cope with. technology is designed to deal with. prior to the transaction, such INow we have vast volumes of data as who you called beforehand We can use this information coming from social media as well as or what kind of apps you used. to improve our decision a variety of sensors, because mobile The question is: how can we making but only if we know phones emit a huge quantity of data. use all this data to enhance However, it’s a process analogous our own decision-making what we’re looking for and to panning for gold, because this in- process? don’t mistake correlation formation is of little value unless we When we talk about ﬁnd ways to sift through it in order the characteristics for causality. to translate it into meaningful in- of big data we talk formation from which we can make about the three meaningful decisions. Vs: volume, velocity and UNSTRUCTURED DATA variety. There are three main sources of T h e lbig data. The ﬁrst is structured, this is traditional data that companies hold or gather from customers’ transactions. Then there’s a lot of unstructured data, which includes the way customers behave when they’re looking at a web page, as well as blogs and the tone and sen- timent expressed in emails, and of course comments on social <9L9AFL=JF=LKG;A9DE=

30 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 31 I D E A S

fourth V would be how to get some could not otherwise have seen. For BIG DATA IS NOT value out of all this. Companies need example, a study was carried out in to understand that it’s not just an is- the public high schools of Gwinnett A SUBSTITUTE sue of technology. It involves chang- County, Atlanta (the 14th biggest ing the culture and the processes in- county in the USA), where pupils FOR INTUITION side the company. were achieving poor test scores. Traditionally, many business de- Various approaches were tried, in- BUT WE CAN cisions are based on intuition. Big cluding increasing the number of USE BOTH GUT data is not a substitute for intuition teachers and reducing class size, but it can give us more insight. It’s but the results did not improve. FEELING AND not a matter of either intuition or Then they analyzed data from the data, it’s about using both. We can school district and they discovered ANALYTICAL use gut feeling and analytical think- that the most successful graduates ing. There’s an interesting example were successful in Algebra 1. Then THINKING TO of this in the recently released mov- they found a correlation in that the ie Moneyball. The film tells the true students who were doing well in Al- ARRIVE AT story of Billy Beane, owner of the gebra 1 were also doing well in cre- Oakland Athletics baseball team, ative writing. This is not an obvious DECISIONS and his bid to build a winning team correlation but when you have a lot with a fraction of the budget of his of data you discover these sorts of competitors. Intuition – in the per- connections and they open up new son of the talent scouts – says that approaches to problem solving. the only way to win is to sign exist- The pioneer in making these sorts ing or rising stars, none of whom the of connections based on a large club can afford. amount of data is Google. Google hired Hal Varian, an emeritus profes- WINNING WITH NUMBERS sor of economics from Berkeley, who Aided by the fact that baseball is is Google’s chief economist. Google is la data-heavy sport, where every using the enormous amount of data fan knows the players’ batting aver- it has access to in order to improve ages, number of strike-outs and so prediction models. For example, us- on, a computer nerd in the team’s ing a product called Google Flu they office runs a statistical analysis on mapped the spread of people who a string of second-rate players who were searching for information about are either near the end of their play- flu symptoms. If somebody is searching life or whose careers have been ing Google for flu symptoms it’s very plagued by social problems and are likely that they or someone close to therefore affordable. He convinces them has got the flu. And if you study Beane that by aggregating their tal- the spread of flu through these search- ents it is statistically possible to put es it’s more accurate than the Centers together a winning team. Inevitably, for Disease Control epidemiology. the scouts dismiss the idea as pre- The same thing applies to house pric- posterous, as does the manager, and es. Instead of looking at how house almost as inevitably Oakland, after prices have behaved in the previous a disastrous start, go on to a record- quarter, you look at how people are breaking 20-match winning streak. searching for houses via Google in This is not to say that the intu- different regions, or through different ition of the scouts was wrong, be- estate agents. The prediction based cause it is equally true that great on the searches is better than a pre- sports teams have been built around diction based on any other economic a few stars and a supporting cast of model, which uses past data instead of makeweights. However, the story is present data. illustrative of how data can comple- This is called “now casting” be- ment intuition and experience. cause with so much data you can The volume of data that a com- make better predictions. Now puter can deal with also sometimes casting exploits data series from a throws up correlations that we range of sources in order to predict

32 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE economic trends. For example, by Big data will change the architec- extrapolating from unemployment ture of business just as the inven- IT’S BETTER figures, trade data and so forth, it is tion of the electric dynamo, which possible to make accurate predic- replaced the steam engine as the TO START tions the about current quarter’s central power source, changed the GDP before the official GDP figures layout of the factories from nar- THINKING OF A are published. row high rise structures to low-rise NEW BUSINESS To give you an example of the horizontal ones and created differ- scale of big data, Wal-Mart has one ent ways of working. It will change MODEL FROM million consumer transactions ev- governance and process, but this ery hour and this translates into 2.5 requires thinking outside the box. WHICH YOU CAN petabytes of information, which is It’s like having an analog watch and equivalent to producing 167 times saying you want it to become a digi- EXTRACT VALUE the information in the Library of tal watch. You can’t do it, it’s a com- Congress every hour. If they can ana- pletely different thing. With big data THAN FIGHTING lyze this data then they can optimize we are still thinking in analog terms their supply chain and decide when and trying to reproduce an analog TO DEFEND THE and where to put which products in experience in this new digital world the shops. But this highlights one of but it requires a new way of thinking. OLD ONE the problems with big data: you have It also throws up important issues of to know what you are looking for. If privacy, security and risk. you don’t know what you’re looking for you can easily fall into the trap of TIME FOR A NEW MODEL mistaking correlation for causality. Sony Music approached the dig- The data explosion is exponen- l ital revolution with an army of tial. Imagine a city with a population lawyers but the fact is this technol- of 300,000 that is growing accord- ogy is here to stay and so things have ing to Moore’s Law. That means that to change. It’s better to start think- within 20 years it would have the ing of a new business model from population of the entire earth. But which you can extract value than it’s not only the way that computer fighting to defend the old one. The power is growing, it’s the way that problem is the old business mod- the algorithms are improving. In the els are threatened at a higher speed mid-to long-term this new data is than we are able to generate new going to generate more wealth. But ones. This is where the tension lies. right now I think we are at Year Zero Things are moving so fast they are as far as big data is concerned. We destroying layers of the economy are in a sort of Wild West scenario, faster than we can think about how particularly in regard to copyright to adapt them. We’ve seen this in and privacy issues. how, since the slump in 2008, the U.S. economy is recovering but em- DATA: A NEW ASSET ployment is not. At the last meeting of the World Einstein said information is not l Economic Forum in Davos, big knowledge. This is more true now data was considered as a new asset. than ever, not just because we have They compared it to the new oil of so much information but because the economy. But if big data is an as- information is becoming a com- set and you want to establish a mar- modity. So the question is how to ket then the first thing you have to transform this information into do it is establish ownership. There knowledge and decisions. This is will have to be legislation on what a reverse of the situation we have kind of data can be used and what been experiencing up until now, kind companies can collect and use. where information was scarce. Ex- What is needed is to create a market perts were filtering in information of big data but the issue of owner- and now the challenge is to filter it ship remains complicated and con- out in order to reach meaningful troversial. decisions.

Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 33 I D E A S H IGH LIGH T S

Steps for Better eHealth The eHealth market in the European Union offers Set up an IT steering committee. This should a plethora of opportunities, but also challenges. bring together executives, stakeholders and users, Chief among these are the IT solutions needed to ensuring that strategy and implementation are in radically modernize health-care governance and line with users’ needs. management. Establish monitoring and evaluation systems. After surveying CEOs and examining case studies These are essential to accurately measure the from some of Europe’s best examples of eHealth, outcomes of IT-enabled business initiatives. IESE’s Magda Rosenmöller proposes the fo- Appoint an executive sponsor. This person llowing steps that health-care providers can take to should champion the IT projects, as well as monitor ensure optimal IT governance. implementation and oversee project management. Make IT a core part of the hospital’s strategy or Encourage clinicians to take an active role in IT investment plan. The IT strategy should reflect the implementation and training. This training should relevance and long-term importance of IT solu- foster ownership and uptake. tions. It should receive the strong support of the institution’s CEO. Increase patients’ involvement and offer simple access. A significant issue is the empowerment Establish a link between technical and clinical of patients to use the new IT possibilities in an operations. The chief medical information officer appropriate way. should be a member of the organization’s board or executive committee, as is the case at the Geneva FOR MORE INFORMATION: University Hospital in Switzerland. www.ieseinsight.com/review/es

BLINDED BY GROWTH Media Markt JAVIER ESTRADA Economic growth has long been Goes Online l an attractive prospect for investors. Economies such as Brazil, China MARC SACHON & ERIC LAUX and India have been hailed for their The online marketplace provides an opportunity that rapid growth and seemingly limit- less returns. Likewise, fast-growing no company can afford to ignore, but if the multichannel companies such as Facebook, Google strategy is not properly thought out, it can damage the and LinkedIn excite investors with business. When Media Markt moved to the Internet similar hopes. In the article Blinded by Growth published in the Journal of there was a conflict between channels that brought about Applied Corporate Finance, IESE Prof. the closure of the online store. After learning from the Javier Estrada warns that relying experience and buying Redcoon, the company is back on growth can be an unwise decision where investors are concerned. Many in business, but the directors still have strategic aspects investors assume that investing in to resolve. How to keep shop managers sufficiently fast-growing economies guarantees motivated? How to decide the online prices nationwide, good equity returns. However, Estra- da uses historical data to show that while still allowing shop managers to pick their stock this is a fallacy. Over a 100-year pe- and price according to region? And how to compete with riod, a 42-year period and a 23-year pe- Amazon, the biggest online firm in the world? riod, there is no correlation between economic growth and equity return. TAKE PART IN THE CASE FORUM: MORE INFORMATION: woo&a]k]afka_`l&[ge'j]na]o I=K=Afka_`l'>afYf[]

34 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE !e Human Cloud EVGENY KÁGANER ET AL Online crowdsourcing platforms are growing WINGS CLIPPED at double-digit rates and are starting to attract PAULO ROCHA, JUAN CARLOS FERRER the attention of large companies. Just as cloud & A. PARASURAMAN computing offers unconstrained access to In their paper The Behavioral l Consequences of Flight Delay the processing capacity and storage, what the authors analyze the effects of flight authors call the “human cloud” promises to delays on passengers' future purcha- connect businesses to millions of workers on sing behavior. They address the consequences of multiple delays, diffe- tap, ready to perform tasks and solve problems rentiating their effects on members that range from the simple to the complex. and non-members of the airline's The authors of the journal article Managing the frequent flyer program. The results show that passengers who have ex- Human Cloud explore four new human cloud perienced delays fly less than pas- models: The Facilitator model, The Arbitrator, sengers who have not experienced The Aggregator, The Governor. any delay. MORE INFORMATION: MORE INFORMATION: I=K=Afka_`l'EYjc]laf_ I=K=Afka_`l'If^gjeYlagfL][`fgdg_a]k

BAD INFORMATION GAIZKA ORMAZABAL ET AL Globalization Hewlett Packard’s $8.8 billion l write-down of its fourth quar- and Obesity ter 2012 financial results provoked NÚRIA MAS, JOAN COSTA-FONT uproar, triggering accusations that & PATRICIA NAVARRO the company had misled investors. But what would make managers of Obesity is the fifth main cause of equity portfolios misreport finan- death in developed economies and is cial results? In the paper The Rela- also a factor behind soaring health tion Between Equity Incentives and costs. Is there a relationship bet- Misreporting: The Role of Risk-Taking ween obesity and increasing glo- Incentives, published in the Journal of Financial Economics, Chris Arm- balization? In the paper Is Globa- strong (Wharton), David F. Larc- lization a Pathway to Obesity IESE ker (Stanford), Gaizka Ormazabal Prof. Núria Mas and her collea- (IESE) and Daniel J. Taylor (Whar- gues suggest that globalization ton) shed light on this crucial omis- may indeed be a determining sion. The authors find that changes in risk, rather than changes in stock factor in weight gain. Howe- price, are a more significant driver in ver, the effect of economic glo- the decision to misreport. While the balization on obesity is diluted increase in value - the “reward effect” when it is controlled for factors such as - can encourage misreporting, the urbanization or the price of fresh food. corresponding increase in risk - the “risk effect” - can also discourage it, MORE INFORMATION: by potentially decreasing value. www.empresafamiliar-iese.com MORE INFORMATION: I=K=Afka_`l'A[[gmflaf_Yf\;gfljgd

Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 35 C R O S OS R OI A D S

DOING GOOD & DOING WELL THE POWER OF WORKING TOGETHER The need for collaboration among organizations was the central theme of the 10th annual DGDW conference organized by MBA students.

ome 550 people gathered on IESE’s Barcelona Among the keynote speakers was Laurent Freixe, execu- campus onFebruary 22-23 for the 10th Doing tive vice president of Nestlé Europe, who spoke via a video on Good & Doing Well conference. This is orga- “Water Scarcity: Paramount Problem for the Food Industry.” nized each year by IESE MBA students to gen- He said that in recent years, “it has become commonplace to erate debate on responsible business practic- criticize the European Union for its slow economic growth, es, social entrepreneurship and sustainability. lagging competitiveness and bureaucracy. But this negative SWith the theme “The Power of Collaborative Advan- perception, without denying the challenging European envi- tage,” the conference included some 104 speakers and ronment, should not lead to a self-fulﬁlling prophecy.” 15 panel sessions, as well as a fashion competition and “Every crisis is an invitation to fundamentally rethink our the Cleantech competition, in which entrepreneurs with ways of working,” said Freixe. EU members must agree on proposals for clean technology pitch to venture capitalists. the long-term targets, objectives and reforms for creating Caixa Bank, The Franklin and Catherine Johnson Founda- economic and social development, he said. “In that sense, I tion, ExponMobil and Agbar sponsored this year’s event. strongly defend the Commission’s “Europe 2020” vision for “A company cannot just be accountable to share- smart and sustainable growth as a starting point.” holders, but must also answer to society,” said Bernard Another speaker was Douglas Tompkins, who made Meunier, managing director of Nestlé España, who un- his name by creating the North Face outdoor clothing but derlined the need for organizations to collaborate. is equally well known for his conservation work in wilder-

36 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE 1

1. From left to right Jordi Canals, Jo Conﬁno, James Gifford, Sean Ansett, Jem Bendell and Magnus MacFarlane 2. and 3. Two moments in this year’s DGDW 4. The organizers, from left to right: Pablo Román Chiriboga, Lucy Hirota Takeuche, Candice Uy, Helena Rakosnik Tobeck, Melanie Ajero, Teresa Morenés Bertrán, James Winder, Melissa Quijano, Alan Snyder and Stephen Mannhard 4

ness areas in Chile and Argentina. For Tompkins, econo- ness ideas in front of 10 of the biggest venture capitalist mics and the environment are inseparable. “What is good funds in Europe. The VCs gave first prize to Norwegian for the world is good for us, not the other way round.” firm Graphene Batteries, with the Switzerland-based He argued that beauty is intrinsic to the ecological para- ActLight coming second. Venture capitalist funds repre- digm and that aesthetics inform everything we do. “Beauty sented on the jury manage more than €3 billion in invest- is the essential notion,” he said. He added that we must ments and the Cleantech entrepreneurs were seeking a demystify the dogma that technology is our savior and we total of €14 million in funding. shouldn’t just welcome all technologies without consider- In the social investment competition, sponsored by ing their impact on culture. “It is impossible to determine CaixaBank, teams from the Oxford, IESE, ESADE, HEC what the carbon footprint of a mobile phone is,” he said. and INSEAD business schools and 10 venture capitalists Other speakers included Mei Li Tan, chief marketing of- judged the pitches made by five social entrepreneurs from ficer of Citi Transaction Services, and Marc Pfitzer, direc- Spain, Switzerland and the UK. The teams from Oxford tor general of FSG. and IESE were joint winners. In the Collaborative Fashion Competition nine teams, PITCHING AN IDEA including seven from IESE, competed for the chance to As part of the 6th Cleantech Venture Forum, 11 com- implement their project in collaboration with Intermon l panies from around the world pitched their busi- Oxfam and Hoss Intropia.

Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 37 C R O S OS R OI A D S

10 Years of Social Values A review of some of the best moments and statements made by keynote speakers who have appeared during this decade.

Mark Albion, founder of More Than Money Institute. “Is that it is more important to ﬁnd your passion More than than to earn money and that if you ﬁnd your passion money will come. ” an experience

Muhammad Yunus, founder of Grameen The DGDW conference not only has Bank and recipient of Nobel Peace Prize an impact on those taking part, but 2004 in 2006. “The model for social businesses is to leaves an indelible impression on change the world.” the students who organize it. For Elizabeth Curran (MBA ‘09) “it was 2005 a turning point and I can proudly Mark Goyder, director of say I wouldn’t be where I am today Tomorrow’s Company. 2006 without it.” Katie Dusett (MBA ‘05) “A business has to serve the needs of human beings and should have a series of its own says “it had been a dream of mine values and should fulﬁll these.” lg`Yn]\aff]joal`Qmfmk&:ml`go do you do that? Easy, you organize a William Paul Underwood, founder and former [gf^]j]f[]Yf\qgmafnal]Qmfmklg director of the Business Committee of the United keynote.” Nations. 2007

To turn an idea into a reality, you simply have “We wanted to show our fellow to find the right leaders.” students that there are other ways to look at the world than the short- Daniel García Guelbenzu, vice president term financial view and that social of General Electric. and environmental impact is linked “CSR is no longer the fig leaf that companies hide their 2008 to financial success,” comments shame, to become a fundamental strategic factor for a simple reason: they cannot continue ignoring people and Emma Coles (MBA ‘04). “DGDW for the environment.” me was one of my key experien- ces during the MBA, in particular Anil Soni, CEO of the Clinton seeing what a voluntary team of Foundation’s HIV/AIDS Initiative CHAI. students can pull together with “The private sector can play a decisive role in helping reduce human suffering all over the planet, through great commitment and energy,” says economic, educational, technological and financial CYl`YjafYElisabeth Lueth (MBA ‘10) contributions on a large scale…” 2009 while for Richa Pathak (MBA ‘11) it showed that “we can run mains- Michel Camdessus, former managing director of the tream business while following IMF and honorary governor of the Banque de France. “Responsibility will become an economic, principles of ethics and responsibili- environmental and social value and social values such ty. Profitability is also important for as solidarity and citizenship have become an economic the financial sustainability of any 2010 value themselves.” business, charity alone cannot bring about required change in the world.” Pamela Hartigan, director of the Skoll Center for Social Entrepreneurship of the “It was a great learning experience Saïd Business School, University of Oxford. for the entire team. I felt not only “The aim of a social entrepreneur is nothing proud of the work, but also stronger but to seek innovative solutions…” 2011 intellectually and as a well-rounded manager,” recalls Devyani Pershad (MBA ‘12). Finally, one of this year’s Gabin Neath, vice president of sustainability, Unilever. organizers, Teresa Morenés, says “it “We are consuming the planet’s resources has has been a unique opportunity much faster than they can be replaced.” 2012 to explore my managerial capabilities within a team as well as giving Bernard Meunier, me the chance to be in touch with CEO of Nestlé España. entrepreneurs and visionaries “One cannot lead a company and only be accountable to shareholders, you have to be whom I hope one day to work for.” accountable to society at large.”2013

38 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE PUBLICIDAD GESTURE RECOGNITION FOR YOUR39 BODY The ﬁrst chair designed for today’s technologies. www.steelcase.co.uk/gesture C R O S OS R OI A D S U.S. ADVISORY COUNCIL HIGH-LEVEL LESSONS FROM EXPERIENCE

ESE Business School’s U.S. Advisory Council, U.S Advisory Council met on which comprises a diverse group of 23 senior March 1 to discuss aspects business and civic leaders, held its annual meeting on March 1 on the school’s Barcelona campus. of the school’s activities in The primary role of the council is to provide North America. guidance to the school for its activities in the UnitedI States, which are led from its New York Center in Manhattan. In addition to its annual meeting, various members of the council met with MBA students in special sessions to share their views on topics relevant to the U.S. business and economic context.

ANALYSIS OF THE CURRENT CONTEXT Prof. Eric Weber introduced the session “Global l Business Outlook: How Global Companies Look at the World” in which the panel was made up of Bill Baker from Channel Thirteen, Sir Howard Stringer, from Board of Sony and Chris Vollmer, from at Booz & Co. Much of the discussion focused on the global media industry. In a parallel session, titled “U.S. Economic Policies with the New Obama Administration,” council members re- flected on how the president’s second-term policies are aﬀecting companies in the United States and then ﬁelded questions from MBA students. The panel, which included council members Edward T. Reilly, from American Mana- gement Association (AMA); Carmen DiRienzo, from V-Me Network; and John Sturm of the University of Notre Dame, was introduced by IESE Prof. Carlos García Pont. In another session, members of the council discussed the topic of technology and new media. Members taking part were Gerry Byrne, from the Penske Media Corpora- tion; Alan Glazen, from Glazen Creative; Tom Kane, of the CBS Corporation and Kate O’Sullivan, from the Mi- crosoft Corporation. The session was introduced by IESE Prof. Alejandro Lago.

40 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE 1

2 3

4 5

1. Eric Weber, Thomas Kane, Kate O’Sullivan, Jordi Canals 3. Carmen DiRienzo and William F. Baker and Sir Howard Stringer 4. Edward T. Reilly, John Sturm and Mireia Rius 2. Alan Glazen and Gerry Byrne 5. Chris Vollmer

Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 41 C R O S OS R OI A D S

US ADVISORY COUNCIL

William BAKER Jay IRELAND Tom ROGERS Channel Thirteen GE Africa TiVo Inc. Gerry BYRNE Tom KANE John SCHMITZ PMC (Penske Media Corporation) CBS Corporation Bingham Consulting LLC Jordi CANALS Sir Howard STRINGER Katherine OLIVER IESE Business School Sony Corporation NYC Mayor’s Ofﬁce of Tom CASTRO Media & Entertainment John STURM El Dorado Capital and Time Warner Cable University of Notre Dame Kate O’SULLIVAN Carmen DI RIENZO Microsoft Corporation Chris VOLLMER V-Me Network Booz & Co. Carlos PADULA Alan GLAZEN Eric WEBER Stelac Advisory Services Glazen Creative IESE Business School Frank J. HAGER Juan PUJADAS Josh WESTON Opp CAP PriceWaterhouseCoopers Automatic Data Processing Inc. (ADP) Claire HUANG Edward T. REILLY Kathryn WYLDE JPMorgan Chase & Co. American Management Assn. Partnership for New York City

2 3 1. Chris Vollmer. 9. Mireia Rius. 2. Kip Meyer. 10. Prof. Eric Weber. 1 3. Sir Howard Stringer. 11. Prof. Jordi Canals. 7 4. John Sturm. 12. Thomas Kane. 5 9 4 8 5. Kate O’Sullivan. 13. William F. Baker. 6 6. Carmen DiRienzo. 14. Alan Glazen. 7. Gerry Byrne. 15. Sandra Sieber 10 11 12 13 14 15 8. Edward T. Rielly.

42 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE MBA CAREER SERVICES

Thank you for your support!

Javier Muñoz Parrondo Career Services Director

Platinum Sponsors Gold Sponsors Silver Sponsors C R O S OS R OI A D S

SEARCHING FOR NEW TALENT With a growing demand for executive talent, IESE alumni attend the newly biannual Career Forum both as jobseekers and recruiters.

e are at IESE because Ehrensperger (PDD ‘06), Senior Vice-President of we’re looking for Operations of Swarovski, at the MBA Career Forum. passionate people, The crystal company took part in the event for the first those who would time this year, and was joined by other companies such love to work with as Amazon, Almirall, Allianz, Altaïr, Accenture, Ber- our products and telsmann, Dupont, Ernst & Young, FCC, Gas Natural, “our clients.W We’re interested in those who aren’t con- King, Louis Vuitton, Mango, Madbid.com, Schneider tent with merely being a number in the company, but Electric and Syngenta, all of whom were here to recruit who have ambition and their own ideas,” said Manuel IESE MBA students.

44 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE Manuel Ehrensperger

As a former student Ehrensperger knows the school very “This shows that where there is talent there are good well, and says that one of the reasons his company relies on opportunities although there is a lot of competition be- IESE is because of the international profile of its students, tween people with this profile,” he says. Last year 90 per- since they are looking for recruits for positions worldwide. cent of MBAs were employed within three months of fin- What Swarovski is looking for is “young people from around ishing the program. Specifically, 65 percent took up posts the world with an open-minded, multicultural outlook. We in Europe, and the number of those recruited in the U.S. look for people who are willing to move, people who want to and Asia doubled. move, to work in different parts of the world. This is very im- The second time the event was held, on February 4 and portant because we operate in many countries where there 5 on IESE’s Barcelona campus, it was mainly focused on are many different kinds of consumer behavior. We are look- second-year MBA students, to whom companies were ing for people for HR, finance, retail and sales.” able to offer concrete positions that the students would Ehrensperger, Julio Rodríguez (PDG ’97), global vi- be able to take up within a few months of graduating. cepresident of Schneider Electric, and other executives There has been a notable increase in the presence of that attended the MBA Career Forum held an informative representatives from the industrial sector, more so than session in which they presented their corporate philoso- from consultancy or finance, which until recently have phy and interviewed various MBAs. In total more than 500 been the worlds into which MBA students have tradi- work interviews took place during the two-day forum, in tionally moved. The other striking difference from pre- which 470 MBA students took part. vious years is that the number of contracts issued from the information technology sector has, for the first time, WHERE THERE IS TALENT, THERE ARE OPPORTUNITIES overtaken those from banking. For Muñoz, this type of This year the overwhelming interest from companies company has realized that “the MBA profile fulfills their l wanting to recruit meant IESE had to hold the event needs exactly.” a second time in the same academic year. MBA Director of Career Services Javier Muñoz said that it was surprising that “at a time of recession in the labour market, the MORE INFORMATION: ooo&a]k]&]\m';Yj]]j>gjme demand for executive talent from IESE continues to grow.

Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 45 C R O S OS R OI A D S

8TH BANKING SECTOR MEETING Optimism at Banking Industry Meeting

The event, organized by IESE’s CIF (Center for International Finance) and =jfklQgmf_$dggc]\Y`]Y\ to the end of the recession. Prof. Juan J. Toribio Jose M. Andrés A mood of cautious optimism lprevailed at the 8th Banking Sec- tor meeting held on IESE’s Madrid campus on December 13. The event was directed by Prof. Juan J. Tori- bio, President of CIF, and brought together some 150 professionals to discuss “The Bank: Opportunities Af- ter the Crisis”. Prof. José M. González-Páramo Jaime Caruana The general view was that the system is functioning better thanks to far-reaching reforms. “All the measures taken have been moves in the right direction,” and “We now have a banking system that is more stable and will be better able to withstand risk,” were some of the views expressed during the meeting.

Ángel Cano Luis M. Linde SLOW RECOVERY Jose M. Andrés, president of l Ernst & Young, said the Span- ish banking system would be one of In the session on regulation and nancial system.” However, other the best in the world. However, the supervision Jaime Caruana of the elements had contributed, he said, immediate outlook for Spain itself Bank for International Settlements such as changes in the order of world is far from rosy, according to Prof. said that “regulation is one factor growth, technology as a motor of José M. González-Páramo. “Spain behind changes in the financial sys- change and consumer pressure. is in deep recession and there’s not tem but it’s not the only one.” He In conclusion, Luis M. Linde, much prospect of the situation im- said the crisis had changed our per- governor of the Bank of Spain, wel- proving in the short term.” Although ception of risk, adding that “only comed the decision reached by Eco- risks in the eurozone have declined, well-capitalized entities should of- fin over supervision. “It’s very im- he lamented the fact that the recov- fer credit.” portant. Two or three years ago no ery is “too slow” and the markets one believed an agreement could be remain “fragmented.” POSITIVE THINKING reached in the short term. The crisis “Monetary union without finan- In a discussion on the future of has speeded the initiative. It sends cial integration threatens the proper l the sector Ángel Cano, CEO out a very positive message to the nature of the euro: the fungibility of of BBVA, commented that the cri- markets that there will be no going money,” the professor said. sis had “dynamited the entire fi- back on the euro,” Linde said.

46 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE FT SURVEY SPOTLIGHTS LEADING PROGRAMS AROUND THE GLOBE IESE’s MBA Ranked Among World’s Top 10

IESE Business School climbed l two spots in this year’s Finan- cial Times ranking of MBA programs, placing 7th in the world. In the ranking, which was published on January 28, the school came in third in Europe. The global list was headed by Harvard Business School, Stanford and Wharton. In Europe, IESE followed Lon- don Business School and Insead. In the accompanying article, the FT noted the rise of business schools in the Asia-Pacific region and the dominance of U.S. schools, with six occupying spots in this year’s top 10. IESE’s full-time MBA program was established in 1964 as Europe’s first 2-year MBA. Since it was first the program became the first bilin- reflecting diverse nationalities. In offered, the program has been guid- gual MBA program of its kind in the addition to the full-time program, ed and assessed by the Harvard- world. Today, roughly 80 percent IESE offers the Executive MBA and IESE Advisory Committee. In 1980, of IESE students are international, the Global Executive MBA.

18TH INTERNATIONAL CASE COMPETITION CONTINUOUS EDUCATION Competing and Sharing Reﬂections of a parallel entrepreneur

l“The joy is in making things happen and the more you do it, the more you learn about the pitfalls and how to avoid them,” Magnus Melander, CEO and founder of B3 Connect Computer, said in his talk “Parallel Entrepre- l“It’s a weekend full of challenges, as were teams from LBS, Tuck, Yale, Chi- neurship: A Firsthand Account” which well as new perspectives,” said cago Booth Business School, HKUST, formed part of the Entrepreneurial Robert Van Den Breemer, one of the CEIBS, INSEAD and IESE. Initiative Cycle. organizers of the 18th edition of the In this year’s edition, London Busi- The meeting was moderated by Prof. IESE-Roland Berger Case Competition, ness School took home the top prize, Anindya Ghosh, assistant professor of held February 14 to 16. Taking part with IESE coming in second place. entrepreneurship at IESE.

Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 47 C R O S OS R OI A D S

SUMMER SCHOOL Future MBAs Are Already Studying at IESE

Alba Puig recently graduated in telecommunications and mathematics. She will join l`]Qgmf_LYd]flHjg_jYe QLH!$hj]hYjaf_^gjYfE:9&

What does a recently graduated l 23-year-old student seek from IESE? For Alba Puig the key is to broaden her professional outlook. Alba Puig “I’ve spent six years studying and acquiring what is basically technical knowledge and I need the tools to figure out why some projects are suc- ’NURTURING TALENT’ look for people with the potential to cessful and others are not,” she says. Puig opted for IESE through the develop and you see this in the classes. Puig is clearheaded and ambi- l relationship that MBA courses After her experience at the Summer tious and insists that there’s no maintain with universities. “I was clear School she realized, “the next step was time like the present to continue that I wanted to study at one of the best the YTP, to start working for a compa- her studies. “If you don’t learn from schools in the world, but the fact that ny and then take part in the Next Step the outset how a company works, IESE came looking for us and asked Seminars for the next two summers,” someone else will do it better than about our abilities in our third year is after which she will stop work and join you and you’ll find it harder to ad- something that I regard as unique.” the 2016 MBA course. “I think I’ll find vance within an organization,” she “They told us about the option of it hard to leave my job after 2 or 3 years, says. “Furthermore, I’ve studied for attending the Summer School and it and I expect the YTP to maintain my two difficult degrees simultaneous- seemed the best of way of finding out thirst for knowledge and to progress ly and so I need to take advantage if I liked the business world and the in my career and come back to IESE.” of this habit and ability now. That’s methodology. The best thing about why having access to these studies IESE is that it doesn’t matter whether MORE INFORMATION: ooo&a]k]&]\m'kmee]j%k[`ggd is invaluable.” or not you’ve studied finance. They

the Global Leader Energy Practice decades, while political decisions are at the Boston Consulting Group, made in a time frame of four years. Global Energy spoke about “The New Dynamics of Politics make self-sufficiency in energy Day Conference Energy.” supply – whether through renewables “Energy will be the key issue of the or shale gas - increasingly attractive, IESE’s Energy Club held a one- 21st century,” Martén said. “We want he added, and the demand for coal is l day conference titled “Global sustainable energy from a security growing. Coal is the most balanced fuel Energy Day” on the Barcelona cam- and environmental point of view but in terms of world distribution, whereas pus, during which a series of experts we also want it to be cheap and this 70% of oil reserves are in Russia and the in the field analyzed the challenges combination is impossible, so there Middle East and 65% of gas is in five, and changes in the energy market. have to be trade-offs.” mostly unstable countries. After an introduction by Nico- A major problem, he said, is that the Martén’s talk was followed by a lás Giordano, Iván Martén, senior implications of energy use are mea- panel on energy security and effi- partner and managing director of sured in centuries and investment in ciency, moderated by Alok Thakur.

48 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE SANTANDER-IESE

CORPORATE LEADERSHIP PROGRAM: Shaping the Global Leaders of Tomorrow

After several years of rapid its, workshops, online interactions, leaders into corporate leaders for l international expansion, executive coaching and peer-to-peer the future of the group, was key for Santander was in need of global coaching. the program’s success. Participants leaders that possessed profession- One of the most interesting as- gained a better understanding of al and personal skills to lead the pects of the program is its evolu- the bank’s overall strategy; they bank’s global growth. The corpo- tion along with the expansion of the developed a new approach to deliv- rate culture and strategy had to be group. Given the clear need to offer a ering value for customers; they cre- embedded quickly and efficiently in program that would provide partici- ated an extensive network amongst those organizations that had been pants with a global vision, in the first professionals from different coun- acquired. It was clear to Santander edition a module of the program was tries, departments and functions; that, to get the job done, there was delivered in Shanghai, China. In and they acquired additional tools a need for a partner like IESE, with 2009 the program was redesigned to to manage dispersed international extensive experience in developing incorporate one module in Sao Pau- teams in a more efficient and pro- custom programs and promoting lo, reflecting Santander’s acquision ductive way. leadership within international or- of a bank in Brazil. Later, the week in The CLP is a testament of the de- ganizations. China was split in two different lo- cisive growth and internationaliza- The Corporate Leadership Pro- cations, Hong Kong and Shanghai. tion. Santander has undergone in gram (CLP), designed in partner- Finally, when the presence of the the last decade. The program dem- ship by IESE and Santander, was Bank in mainland China was more onstrates the group’s clear focus closely related with the bank’s strat- consolidated and its growth plans on encouraging internal talent and egy of international and inorganic in this market were clear, the Hong developing their aptitudes and at- growth and development. It blend- Kong module was swapped with a titudes to lead the group in the new ed the core values of both organiza- module in Beijing. economic, geographical and strate- tions and consolidated a wide range The full support of Santander’s gic environment of the 21 st century. of academic approaches combining top management for the program’s lectures, business cases, team dis- objectives of developing high-po- MORE INFORMATION: ooo&a]k]&]\m'[mklge cussions, live projects, company vis- tential managers into corporate

Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 49 C R O S OS R OI A D S

10TH ENERGY SECTOR MEETING IN MADRID Energy in the New Global Paradigm

Improved efﬁciency, smart systems, pricing and regulatory reforms dominate the discussion on the future of energy generation.

The 10th Energy Sector Meet- l ing, jointly organized by IESE and Goldman Sachs, was held on the Madrid campus and brought together some 200 professionals from the sector. The title of this year’s conference Prof. López Cardenete, José Folgado, Borja Prado, José Manuel Soria, Salvador Gabarró and Antonio Llardén was “A New Energy Policy to Face up to the Urgency of the New Global Par- adigm.” Some 30 speakers discussed energy savings and efficiency, the the use of nuclear energy as part of the questions of competitiveness, regula- development of smart grids and me- energy mix and backed the continued tory reform and energy ﬁnancing. The ters and the prioritization of national use of nuclear power stations in Spain. meeting was overseen by IESE profes- sources of energy such as nuclear and Alastair Maxwell, who has joint sor Juan Luis López Cardenete. hydroelectric. global responsibility for energy at José Folgado, the president of the The president of Gas Natural Goldman Sachs, said that prices were Spanish grid, emphasized a number Fenosa, Salvador Gabarró, said a vital aspect of the sector’s develop- of key points if energy were to be- that “natural gas is an energy of the ment. “The price rises in 2004 and come a source of growth and devel- future,” and that there are suﬃcient 2007 have encouraged investment in opment in Spain. Among them were reserves for at least 230 years. new technologies. As a result of this greater use of electric power and less José M. Soria, the minister of in- investment, the sector has entered a of hydrocarbons in transport, more dustry, energy and tourism, defended new era,” he said.

tinuous Education session held on entrepreneurs raise money from in- IESE’s Barcelona campus. Moder- vestors and seek out a company to Search Funds ated by Mathieu Carenzo, director acquire. There are three key stages Looking for a of IESE’s Entrepreneurship & In- of the search fund model: raising the novation Center-EIC, the session fund, ﬁnding the right company and Business to Buy spotlighted how search funds work managing to grow the company in or- and advice for aspiring search fund der to provide a return for investors. and Improve entrepreneurs. “Raising the fund is During the event, titled “The Search Although search funds are still the easiest part,” said panelist Marc Fund: How to Obtain Funds through l at an embryonic stage in Europe, Bartomeus, whose Spain-based fund Entrepreneurship,” the panelists they are gaining ground as a way for includes investors from the United also gave tips on how to identify po- motivated entrepreneurs to create States, the U.K. and Spain. “Search- tential small and medium-sized busi- value for companies and investors, ing for a business is much more nesses for acquistion and how to ap- said panelists during a special Con- complex.” In the search fund model, proach current business owners.

50 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE Sessions on Controlling Costs and Leadership On January 31 Prof. Eric Weber lled a discussion at the New York Center titled “Strategies for controlling costs: A second look after some PAN AFRICAN AMP IN BARCELONA additional years of crisis.” The professor, who is also the director of the New York Center, argued that there is no doubt that the crisis has only Thinking Beyond enhanced the need to maximize efficiency and reduce costs. In a time where revenue is under so much Oil to the Future pressure, the world looks at what can be done on the cost side of things to save the day. So why is it that some- Some 45 senior executives and it has stifled innovation. Agriculture thing apparently so simple, con- l government officials from La- is more exciting because of the po- trolling costs, often seems to go so gos Business School in Nigeria and tential it gives to small businesses. wrong just when we need it to work Strathmore Business School in Nai- Maybe we should get into contract the most? The event was a follow-up robi, Kenya, gathered on IESE’s Bar- agriculture, growing products for to the successful lecture delivered in celona campus in October for the Pan specific markets.” March 2010. African AMP module “Understand- Mutambo says “It’s still a challenge Meanwhile in San Francisco 74 ing the Business Landscape.” for us to tap into our natural resources participants, including 28 from the “I feel that by the time we real- even with donor funding. One hydro G-EMBA class of 2013, attended a ize our potential the world will have dam in the Congo basin would produce session on entrepreneurial leader- changed so much,” says Collin Mu- enough power for east, central and ship led by IESE Prof. Hakan Ener. tambo, from Uganda, who is gen- southern Africa. There’s a sense that Other speakers included Santiago eral manager of the we haven’t got a Corredoira (GEMBA ‘11), CEO of broadcasting com- grip on what to StepOne, a company that helps high- pany Radio Simba. “Africa needs to posi- do first and how potential Spanish tech companies “I think Africa tion itself strategically to do it in a coor- with their entry into the American needs to position it- dinated way, such market, and the Pier 2 Marketing co- self strategically as a as a supplier of some- as interconnect- founders: Paul Hamel (GEMBA ‘09) new kind of supplier thing that will take ing rail systems and Gimena Peña. Pier 2 Marketing of something, we Africa out of poverty” across borders.” is a marketing firm that creates a per- just have to find out Ezeoke be- sonalized strategy for each customer what – something lieves that much using a 360º model focused on the that will take Africa out of poverty. of what attracts foreign investors particular needs of the company, its Black gold – oil – is going to be a big to Nigeria is the size of the popula- customer’s profile and insights. catalyst for development. Africa could tion and the emergent middle class. also become a food exporter.” “Many of my peers we thought would Uzoma Ezeoke, executive direc- stay in the U.K. or the U.S. have gone tor of Emzor Pharmaceuticals in back since the financial collapse and Lagos, says she’d like to stop hearing are taking a renewed interest in Ni- about oil. “It has so much value and geria. We’re going to regret it if we you really don’t have to work for it. don’t capitalize on ourselves,” she Once you’ve got it out of the ground says. “The answers aren’t going to there’s a ready market. It makes you come from government and we need lazy. In Nigeria it’s all we do. I think to look to the private sector.” Prof. Eric Weber

Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 51 C R O S OS R OI A D S AGENDA SHORT FOCUSED PROGRAMS

Convert Business Opportunities into Manageable Projects Barcelona, April 16-18 Develop Your Communication Skills: It’s How You Tell Them Barcelona, May 7-9 Getting Things Done Barcelona, May 21-24 Maximize Your Board’s Potential Barcelona, June 4-7 Managing People Across Cultures Barcelona, June 18-20 Optimizing your Retail Business Alumni Barcelona, July 9-11 High Performance Negotiator Barcelona, July 22-24 Meetings MBA ALUMNI REUNION BARCELONA, MAY 25 MBA AND G-EMBA FIVE-YEARLY MEETINGS BARCELONA, MAY 25 The MBA Alumni Reunion and ﬁve-yearly MBA and G- Industry EMBA meetings will take place on the Barcelona campus on May 25. Alumni can meet up with and share anecdotes Meetings with fellow students from their course and from other Between April and June years, and relive their time in the classroom during special leaders and experts from sessions organized by the school’s professors. a range of sectors will address meetings on the IESE campuses. 10th Retail Industry Meeting Madrid, April 10 & 11 6th. Sales and Marketing IESE International Ofﬁcers Meeting: “Reinventing Yourself to Move Forward: Sales Management Advisory Board Meeting Innovation” Madrid, April 17 BARCELONA, APRIL 19 3rd. Insurance Industry Meeting: “Key Times: An Made up of prestigious business and society Industry in Transformation” Madrid, April 24 leaders from continental Europe, the United 3rd International Tourism Kingdom, the Americas and Asia, IESE’s Summit: “Emerging Trends in the Tourism Industry” International Advisory Board meets periodically Barcelona, May 17 to assess business management at a world level 2nd Meeting on Innovation: “Innovation, + Health” and to discuss challenges and opportunities. Barcelona, May 22 17th Food & Beverage Industry Meeting: “Selling Across 5 Continents” Barcelona, June 4 19th Telecom, Digital Media & Information Society Industry Meeting: “A Whole New World: The Revolution of Big Data” Madrid, June 11 & 12

52 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE Market forces BARCELONA, MAY 27-31 Leaders in highly competitive markets have little time to examine global trends or understand their possible long-term impact. This program allows you to develop a perspective and strategies in a dynamic and interactive environment. During ﬁve intensive days, participants learn to explore how new socio-economic FAST FORWARD tendencies and global trends could be relevant to their company.

Global CEO Healthcare Driving Program for Management Government China Program Performance SHANGHAI, BEGINS APRIL 7 BARCELONA, BEGINS APRIL 22 MADRID, MAY 20-23 The Global CEO Program There has never been a more This executive program, which for China is an exceptional pressing need for an approach is organized in association opportunity for executives in to healthcare management with Harvard Kennedy School, China to enhance their leader- education that is as reﬂective looks at ways in which political ship skills and to gain new as it is pragmatic. This is the leaders can establish goals, insights into the major social, approach of the Healthcare revitalize bureaucracies, mo- cultural, political and econo- Management Program (HMP), tivate people, create organiza- mic factors that significantly made unique by IESE’s hall- tional capabilities, communi- impact business across the mark focus on the human cate ideas, measure results and global marketplace. aspects of leadership. enhance performance.

PMD Munich-Barcelona Graduations Ends Barcelona, May 8 Global CEO Program EMBA Last module ends June 7 Barcelona, May 3 PLD New York MBA Ends July 7 Barcelona, May 10 AMP in Media and Entertainment EMBA Fourth and ﬁnal module Madrid, May 30 ends June 15 G-EMBA HMP Barcelona, May 31 Closing ceremony June 21 AMP Warsaw International Faculty Program Closing ceremony April 26 Graduation ceremony June 21

Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 53 P E O P L E ALU MNI Eggert Gudmundsson (MBA ’97, AMP ’12)

“We’d pay a high price if we joined the EU” STEPHEN BURGEN

Eggert Gudmundsson trained as an ggert Gudmundsson is CEO of N1, one of biggest retail, service and distribution engineer but shifted into marketing companies in Iceland. The comapny grew before becoming CEO of one of Iceland’s out of a chain of gas stations but now in- largest retailers and fuel suppliers. He cludes service stations and a range of retail services, as well as supplying fuel to talks to the magazine about leadership airlines,E the fishing industry and other big companies. and why Iceland is steering clear of the He was until recently CEO of HB Grandi, one of the largest fishing companies in Iceland and a leader in its field. European Union. Gudmundsson is also vice-chairman of the Icelandic chamber of commerce.

What made you change jobs? I’d been in the old job for about eight years. I was very happy there but when I got the call asking me to make the move I decided I wanted to take on new challenges. The retail aspect is new to me so it’s been a bit of a learn-

54 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE ing curve. I’ve been in the job for four months now and relationship between numbers. It’s goal-oriented. In I spent a lot of time visiting all our locations around the engineering you deal with cause and effect and you are country and talked to staff and then I spent time analys- trying to achieve a certain result and that is very much ing the information to see what could be improved. We what you do in business. have started to reorganize the company to be more customer-focused. My background is in electrical engineer- Iceland has a population of some 320,000. What are the ing and I worked for five years as an engineer in Iceland. pros and cons of being a small country in an increasingly I was developing products and gradually moved towards globalized world? marketing these products and, although an engineer, I There are benefits to being a small country in that you can migrated into marketing and then to the MBA at IESE be nimble - sometimes too nimble, which is partly what led and one thing led to another. to the banking crisis. And it’s easier to link up with other companies and other countries. We have over capacity in Quite a few CEOs have engineering backgrounds. Why many sectors. For example, we have far too many retail do you think that is? outlets to serve the local market. So to be more profitable I think engineering is a good background for anyone who you have to look at foreign markets. This is what both the wants to run a company because you are trained to think fishing companies and the most advanced industrial com- systematically and not only with numbers but the inter- panies are doing and in many cases Iceland is just a small

Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 55 P E O P L E TO BE A GOOD LEADER YOU NEED TO KNOW WHERE 7YOU’RE GOING. THEN YOU NEED TO FIND GOOD PEOPLE AND MAKE SURE THEY HAVE THE TOOLS THEY NEED. IF ALL THAT IS IN PLACE YOU SHOULD LEAVE THEM ALONE TO GET ON WITH THE JOB

fraction of their business, although they still have their this would be damaging to the fishing industry which is headquarters here. still backbone of the Icelandic economy. I don’t think it’s in our interests to join, especially not now with all Iceland was badly hit by the crisis and yet the nation has the problems that the European Union has. A majority responded with what many see as admirable defiance. of people would like Iceland to have the euro but equally What happened here was the banking system had grown a majority is opposed to joining the EU. We’d like to join completely out of proportion. There was no way the coun- the euro but the price would be too high. So what people try could take over the banking debt so at the end of 2008, are looking at is the possibility of adopting a different when everything was crashing around us, we had to take currency such as the U.S. or Canadian dollar or the Nor- some special measures. The authorities have handled wegian krone. the situation reasonably well. We had some emergency loans from the IMF and neighboring countries to help us What have been the milestones in your career? get through the storm and the clean up act has gone quite The biggest change was when I was working in Iceland well. Iceland didn’t default, the banks defaulted. What the and wondering whether to go further into marketing. My country refused to do was to take responsibility for all the wife saw an article about IESE which looked very inter- banks’ debts. The government said it would cover some esting so I decided to apply. I also got accepted by Insead but not all of it because otherwise both the government and IMD but decided to go to IESE. After the MBA I was and our currency, the krone, would have to default. Many hired by Philips in Belgium where I worked for three years people who put money into Icelandic banks with the hope and then a further four with Philips in the States. of high return lost out. And then only last year you returned to do an AMP. Why Given the current situation, is it a good thing that Iceland was that? is not in the euro? I graduated in 1997 and I hadn’t done any significant cours- Yes. After the crash it’s helped us that we have been outside es since then. I needed some kind of refresher. IESE gives the euro and, although it has meant a drop in living stan- you a broader outlook and helps you to understand a wide dards, unemployment hasn’t risen like in some European range of industries. That makes it easier to make the sort countries. This has been achieved through devaluation of of transition I’ve made. It’s like taking on a big case study the Icelandic krone which means, in terms of foreign cur- – although with a lot more exhibits. rencies, salaries have gone down. It would be beneficial to have a stronger currency because it’s difficult to have such What are the most important qualities that contribute a small fluctuating currency when you only have a popula- to good leadership? tion of 30,000 people. To get the euro we would have to You need to know where things are going and where they join the European Union and the Icelandic government should be going. You can call it mission, vision, strategy does actually have an application pending to join but no – all those fancy names – but basically you need to know one believes this is real, partly because only one of the two where you’re going. Then you have to make sure you have coalition parties supports the idea. the right people and that they make a good team and they have the right tools. And finally you need to let them get What would Iceland gain from joining the EU? on with the job. If all the other things are in place, you I think it’s very clear what we would get out of it. We shouldn’t be micro-managing them and disturbing them would be getting the stability of a stronger currency, but in their work.

56 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE

P E O P L E

TWO NEW ACADEMIC CHAIRS DRIVING BUSINESS RESEARCH AND INNOVATION Philip Moscoso, holder of the Eurest/Compass Group Chair of Excellence in Services and Pascual Berrone, who occupies the Schneider Electric Chair of Sustainability and Business Strategy, discuss the research they will be undertaking.

t a time when the international economic in mind that some types of knowledge are only acquired situation is leading to a paralysis of through continuity and over time. The aim of the Eurest/ initiatives and the closing down of Compass Group Chair is, in the words of its holder, “to companies or parts of them, and when develop knowledge about how organizations can achieve many companies are freezing their edu- service excellence, why they should target this, and how cational budgets and forgetting that in they can be innovative in this respect.” For his part, the timesA of recession education is all the more necessary, focus of the chair held by Prof. Pascual Berrone, will be IESE is swimming against the tide. Once again it is put- on “developing sustainable strategies for business that ting its money on advancing and encouraging innovation guarantee economic growth and social progress.” and research in areas of interest for companies, society and the school itself. Two new academic chairs have been EVERYONE STANDS TO GAIN established in 2013: theEurest/Compass Group Chair of FROM THIS RESEARCH Excellence in Services and the Schneider Electric Chair A wide range of activities will be carried out, from ap- of Sustainability and Business Strategy, in addition to the lplied research, research seminars with international 16 the school already has. experts, publications, congresses, debating forums between academics and business people, postgraduate TWO LONG-TERM PROJECTS courses, symposiums, books and bibliographies. All of The chairs are funded by the companies that they are this knowledge will be made available to the sponsoring l named after. It is a ﬁnancial fund that will allow for companies, alumni and, to a large extent, to the entire the development research over the long-term, bearing academic and business community.

58 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE INTERVIEW: PHILIP MOSCOSO The intense competition that businesses face and l ever more demanding clients make service excellence a crucial source of competitive advantage. Philip Moscoso is professor of operations and holder of the Chair of Excellence in Services which aims to help executives understand how to develop models of service excellence for profitable growth. Most companies believe that it is necessary to offer excellent services. What are the main challenges they face? On the one hand, companies face design challenges and, on the other, difficulties in implementing their service models. In terms of design, companies typically try to improve a bit every aspect of the service they offer in order to charge a bit more for it. But the game isn’t like that. What companies need to do is to understand how the service model is going to generate value for the company and its clients, and then adjust it accordingly. Implementing a service model is also an important challenge. Excellence in services relies a great deal on people and, therefore, requires developing the corresponding company culture. Furthermore, rewards will take time MOBILE DEVICES WILL BE to manifest and the executives need to develop a long ESPECIALLY SIGNIFICANT term vision therefore. In your research you highlight the importance of adopt- IN THE DEVELOPMENT ing an integrated focus for establishing a services model. Can you develop this? OF NEW SERVICES We need to understand service as an experience through which a company’s employees meet clients’ needs and cre- STRATEGIES” ate value for them. It is important to think of service from strategy to execution. A successful service model must therefore touch upon all of the dimensions that form part of that experience: defining the target market and design- thanks to the growing sophistication of information ing a value proposition based on that definition; creating systems, while leveraging at the same time economies an operational strategy that will allow you to sell this value of scale through globalization. Technology also influ- proposition to the target market at a profit; and, finally, to ences the context in which interactions take place. It’s put in place a delivery system that meets the needs of the clear that in the future we will operate more with multi- proposed service. It is important that the service model channel formats, where companies and clients interact is not only aligned with the target client. Employees and through different channels, both real and virtual. Mo- suppliers also need to be part of the value proposition and bile devices will be especially significant in the devel- fit properly into the service model. opment of new service strategies. Finally, innovative Is there a perfect formula for a successful service model? service models will evolve as do the profit pools in an No, but we can develop ever more personalized services industry, and vice versa.

EUREST/COMPASS GROUP CHAIR The Chair was presented on the Madrid campus in January. During the presentation Prof Philip Moscoso discussed some of the areas of interest that he planned to focus on: the co-creation and collaboration between companies and clients, the development of concepts and tools for new service models, leveraging best the human and organizational factor, as well as new technologies. The presentation of the chair enjoyed the collaboration of Andrew Martin, Group COO for Europe and Japan of the Compass Group, and Alfredo Ruiz-Plaza, Prof. Jordi Canals and Alfredo Ruiz-Plaza, managing director of Compass Group Spain & Portugal. Andrew Martin

Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 59 P E O P L E

INTERVIEW: PASCUAL BERRONE “Companies have to be able to meet current demand lwithout sacrificing or compromising the ability or the means of future generations to meet their own needs. And they even have to improve the tools that they have at their disposal,” said the holder of the new Schneider Electric Chair of Sustainability and Business Strategy, Pascual Berrone, professor of strategic management. Through- out his academic career, Berrone has initiated and contributed to the sphere of sustainable management. The central theme of his work is to understand the impact of sustainable strategies and the conditions that are necessary to guarantee their effectiveness. What is the aim of this new chair? What we want to do is to generate deep and rigorous academic knowledge that will allow companies to make the most of these opportunities and in particular highlight not only the financial benefits but also the improvement in the quality of life of all citizens. To achieve this we are going to bring together theories and practices of sustainability in the sphere of business with the aim of creating value in the long term and, as a result, raising consciousness about topics such as sustainability in private and public life and in the academic sphere. Knowledge, technology and economic interests have fed CSR AND SUSTAINABLE off each other, creating a way of understanding the world that is governed by market interests. What strategies do DEVELOPMENT MUST BE AT companies need to employ to change this situation? THE CENTER OF BUSINESS We want to use this chair to develop frameworks and tools that facilitate strategic decisions and speed up the AND NOT JUST SOMETHING change towards sustainable development with the idea of promoting Corporate Social Responsibility and sustain- COMPLEMENTARY OR able practices at the heart of business. Our research is going to be focused on these fields: how companies see THERE AS MERE WINDOW innovation in terms of competitive advantage; how to DRESSING” identify business opportunities in the process of resolv- ing social problems; assessing the impact of sustainable initiatives on the operation of the company; studying the processes through which we can resolve the challenges of global sustainability in urban areas (especially water Why is sustainability important? conservation, energy management and sustainable mo- Sustainability is an important topic for companies because bility); identifying organizational structures and gover- during recent decades society in general has realized that nance mechanisms that facilitate innovation and sustain- it is suffering from a series of problems such as climate able strategies, in order to measure the risks and benefits change, water shortages, poverty, inequality, illiteracy of the different sustainable initiatives in global markets and pollution. The coming together of these elements has and in society as a whole. changed the circumstances in which companies compete. All of this is understood in the context that Corporate So- Faced with this change, companies, all of which have their cial Responsibility and sustainable development must be exisitng models, strategies, methods and processes, need at the center of business practice and not just something to it review them and look for a way of converting these complementary or there as mere window dressing. challenges into opportunities.

SCHNEIDER ELECTRIC CHAIR Prof. Berrone will present the Schneider Electric Chair of Sustainibility and Business Strategy on April 4 at IESE’s Barcelona campus.

60 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE PUBLICIDAD 61 P E O P L E

LUIS I. COLLANTES (MBA ’06) ALBYN MEDICAL A new FINAVES Healthcare Initiative

In 2002 Luis I. Collantes (EMBA l‘06) and Hubert Thomassen (MBA ‘99) presented their business plan for Albyn Medical, a company specializing in the production and supply of systems and equipment for urology, gynecology and gastroenterol- ogy. At the time, Both were working for Grupo Palex Medical, owner of Albyn Medical, and the board due to internal strategic considerations decided not to carry on investing in the company. Collantes and Thomassen thus decided to acquire the company on their own, establishing the Smart Medical Luis I. Collantes Group as an acquisition vehicle for the company. Since its foundation in 2003, the company has achieved numerous accomplishments but has also faced its headquarters in Barcelona. The with double-digit growth, and over challenges, including a failed first at- business plan was integrally achieved 70% of its turnover is derived from in- tempt to expand internationally, and within the first year but the decision ternational sales. The UK alone repre- financial problems, which have served to start operations the following year sents 40% of revenues, while the com- as a learning experience and strength- in France proved hasty. “We were pany is tripling its results in Germany, ened the project. In 2009 they decided obliged to retreat after a series of stra- opening new markets in Mexico and it would be more efficient to merge tegic mistakes,” says Collantes. Chile and will soon be starting opera- the three companies then operating Meanwhile the Navarra Devel- tions in China, Korea and Russia. Col- in Spain – the parent company Smart opment Society lantes underlines Medical Group, the sales arm Smart (Sodena, the main the importance Medical and Albyn Spain – under one investment arm of of the values he roof, Albyn Medical. “We’ve managed the Navarra gov- “Being ethical is not acquired at IESE, to turn the company around in only ernment), which only good in itself, but “such as ethics. three years,” says Collantes. “And is also a partner of in the long-term it is Being ethical is not today, Albyn Medical is an innovative FINAVES, offered beneficial for the only good in itself, company in the healthcare sector with Albyn Medical fi- business” but in the long- a prominent international profile.” nancial and logis- term it is beneficial Collantes admits that it was dif- tical backing. “In for the business. A ficult to establish financial stability May 2006 Sodena lack of ethics can while continuing to internationalize. decided to join the company – it cur- lead to terrible errors.” He also high- “When we decided to buy the com- rently has 42.6% of Albyn Medical lighted the “opportunity IESE gave pany we initially encountered diffi- and is our main shareholder – and we me to build strong friendships. This is culties raising financing for the op- moved the headquarters to Pamplona important because networking helps eration, until we decided to present which was the only condition that they you meet a lot of people, but the best our project to FINAVES. After that requested.” There Albyn Medical has help comes from good friends. And at everything happened very quickly. its main distribution center where it IESE you make very good friends.” FINAVES offered us financial, and carries out its R&D program. later, strategic support as a partner The results have been spectacular. MORE INFORMATION: ooo&YdZqfe]\a[Yd&[ge in the company.” Albyn Medical had The company is generating profits

62 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE SHARING VISIONS, SHAPING PROGRESS

JOIN IESE’S AMP IESE’s Advanced Management Program (AMP) brings you the latest global business trends and gives you the chance to share ideas with AND RESHAPE high-caliber general managers and CEOs from around the world. YOUR BUSINESS. The program is speciﬁcally designed to help you make better strategic decisions and revise your leadership style.

A combination of case studies, peer discussion and individual coaching guarantees a ﬂow of practical and innovative ideas, as well as immediate impact on your company.

The AMP consists of four 1-week residential modules in Barcelona over a six-month period. Participants are able to choose the Fall or Spring Edition. www.iese.edu/amp BUSINESS SCHOOL IN THE WORLD FOR EXECUTIVE EDUCATION [email protected] Financial Times, May 2012 P E O P L E

MIGUEL LÓPEZ-REMIRO (EMBA ’12), DIRECTOR OF THE UNIVERSITY OF NAVARRA MUSEUM CONNECTING ART AND ENTREPRENEURSHIP

The director of the way: a cultural institution that has ar- worlds. He is an art lover and also an tistic objectis that will reflect art and economist and manager of culture, University of Navarra put it in dialogue with other knowledge so he understands the need to apply Museum talks about his in a university context.” business criteria to move in the art plans for the new museum In this way the art serves as a cross- world. “The world of cultural mana- roads for many disciplines. gement needs efficient management and the close relationship He already imagines what the mu- with sustainable criteria with the between the apparently seum will be like: “the objective will aim of providing a service that has be a cohesive center, like an artistic value for the end client, who is the irreconcilable worlds of platform that promotes the role of spectator or the user. Morevoer, he arts and business. art in university life, argues that compa- and that has ipact on nies can learn a lot societ. “We will be “Art fosters critical from the capacity Miguel López-Remiro, who has able to see a Rothko judgement, empa- for innovation that l a degree in economics, also has a exhibition and invite artists have. “I be- thy, creativity, and, doctorate in aesthetics and art theory an economics profes- lieve in the trans- from the University of Navarra and sor to the gallery to of course, entrepre- formational capaci- EMBA ‘12. He is editor of the books on talk about the crash neurship” ty of art. Attention Mark Rothko with Yale University. He of 1929 in New York to art can build was appointed director of the Univer- and how Rothko was critical judgement, sity of Navarra Museum in 2010 after living then, or invite a euroscientist to empathy, help foster creativity and working at the Guggenheim in Bilbao, talk about color in his work. We want a also, of course, entrepreneurship”. as assitant director. The project is set living museum. He adds that an entrepreneur is to revolutionize Pamplona’s artistic “someone who has a special capa- and cultural life when it opens in the BETWEEN TWO WORLDS city to envision things, imagine and autumn of 2014. Another step in the López-Remiro comfortably propose ideas, which an artist does internationalization of the university l straddles two counterposed constantly.” with a clear fous on making an impact on the world of culture. While awaiting completion of the emblematic building designed by Rafael Moneo, López-Remiro ad- vances with the definition of the museum and comments that it “has two unusual attributes. On the one hand, it has unusual governance structure: it is composed of 50 founding partners who provide capital for the construction of the building and its future susatinabil- ity, but who will also participate inthe strategic management of the museum. The second distinctive feature its its “museum university” character. Not only because it is inside a campus surrounded by 10,000, but also because the museum will “generate knowledge Miguel López-Remiro focused on art in an interdisciplinary

64 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE ART WITHIN THE CAMPUS. MUSEUM UNIVERSITY OF NAVARRA www.museumuniversityofnavarra.com P E O P L E

“VOLTIUM, INC.” RECEIVES 2012 CASE WRITING COMPETITION PRIZE IESE Case Earns EFMD Award

The case “Voltium, Inc.,” written l by IESE professors José Ramón Pin, Guido Stein and Juan Carlos Vázquez-Dodero, in collaboration with Eloy del Potro, has been recog- nized by the European Foundation for Management Development (EFMD) as the best publication in the 2012 Case Writing Competition in the category of “Responsible Leadership.” The winners were announced on February 21. The case analyzes the influence of The professors José Ramón Pin, Guido Stein and Juan Carlos Vázquez-Dodero circumstantial and cultural factors in making certain types of business decisions. It is based on a real experience of a participant in IESE’s Executive MBA points of reference and social organiza- THE WORK OF THE ENTIRE FACULTY program who consulted his “Making tion - an environment in which global The three professors agreed that Prudent Decisions” professor about executives must nonetheless increas- l the EFMD prize underscores the the situation described in the case. Af- ingly learn to move. efforts of IESE’s entire faculty to re- ter that consultation, professors Pin, For Prof. Pin, “the knowledge ac- view a series of principles that place Stein and Vázquez-Dodero, in col- cumulated by IESE over many years people and their real needs and digni- laboration with Prof. Joan Fontrodo- of studying business cases focused on ty at the center of business activity. As na, decided they should turn the story – ethics was fundamental in writing the Prof. Vázquez-Dodero explained, “it highly instructive from a management case.” The story also has the freshness is not easy to renew concepts, many point of view – into an IESE case. of the real experience of a student, of which have been around for 2,500 According to Prof. Vázquez-Dode- “who knew how to see that a business years. The disorientation we have ro, the most difficult aspect of writing venture is an educational path, if one fallen into requires us to revive some the case was “reflecting on the African has adequate moral cognizance and essential fundamental conceptions continent’s situation, which can only the courage to apply it.” of the human person, society and really be described by someone who Prof. Stein stressed that the case work.” Winners in the different ca- has experienced it first-hand.” “provides important insights on per- tegories of the prize now aspire to be In addition to questions of discre- sonal risks that are sometimes as- awarded the “Best of the Best” prize, tion, he said, perhaps the greatest sumed without proper analysis,” when which will be announced at the end of challenge was to help the reader under- confronting financial, commercial, April and will be presented at the 2013 stand a scenario so fundamentally dif- operative and even ethical challenges EFMD Annual Conference, June 9-11 ferent from our own, in terms of values, in business. in Brussels.

J. KIRKPATRICK, CEO OF AEGON During his presentation, which As an executive, he had to learn was part of IESE’s Global Leadership how to manage talent. “It’s basic to Series, Kirkpatrick encouraged parti- develop the human facet, be closer to Lead Through cipants in the Executive MBA to ﬂee the people around you, nurture inter- from conformity, to be courageous in personal capacities,” he said. He also Authenticity facing risks and professional challen- noted two keys for carrying out this Adapt, take risks and learn. These ges and to confront leadership tasks task successfully: sincerity and clarity. lwere the main ideas anchoring a with humility and credibility. “The “You have to lead through authen- talk given by Aegon’s general mana- inability to know how to overcome ticity. You should communicate con- ger in Spain, Jaime Kirkpatrick, on each stage of life amounts to a kind tinuously and always tell the truth, March 1 on IESE’s Madrid campus. of intellectual death,” he said. no matter how diﬃcult it is.”

66 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE

C M Y CM MY CY CMY K

PUBLICIDAD 67 P E O P L E

ZHANG RUIMIN, HAIER CEO CEO OF ING DIRECT Keeping Up Carina Szpilka: “!e Client Has with the Times to Be Central” “In its organizational struc- Carina Szpilka, CEO of ING l Direct, provided participants ture, Haier has moved from in IESE’s Executive MBA Program the pyramid to an inverted in Madrid with insights on leader- triangle. The top manag- ship and the latest shifts in consumer behavior during a special ses- ers are at the bottom of the sion as part of the program’s Global triangle,” Zhang Ruimin, Leadership Series. CEO of Haier Group, told She said that the current economic crisis has sparked important a Continuous Education changes in the world and also in cus- program session in Barce- tomers. “We live in an ‘experience’ lona, moderated by Prof. Carlos Sánchez-Runde. economy, in which the client has to be central, things have to go well the Dean Jordi Canals said that in 1984 Zhang had taken a ﬁrst time and you need a team that is small company and turned it into the world’s biggest sup- highly committed,” she said. plier of domestic electrical appliances in the world. “Companies must adapt to their times,” Zhang said. “The vitality of the organization is crucial and complacency is the enemy.” The company developed the idea of self-management where each employee is a self-managed unit and where remuneration is linked to performance. “Managers at Haier, instead of giving orders, provide support so that employees have what they need to do their jobs,” Zhang said.

PROF. MIREIA GINÉ WINS BRATTLE GROUP PRIZE Praise for Paper on Corporate Governance IESE Prof. Mireia Giné has been named Brattle Group. They are presented at as a recipient of the Brattle Group the American Finance Association’s An- Prize 2012 for Corporate Finance, in nual Meeting in San Diego, California, the category of Distinguished Paper. which was held in January. Winners of Giné was awarded the prize for the the prize are judged to be exceptional paper, “The Vote Is Cast: The Effect of by the associate editors of The Journal Corporate Governance on Shareholder of Finance. The AFA is an academic or- Value,” which was co-authored with ganization devoted to the study and Vicente Cuñat, professor at the London promotion of knowledge about ﬁnan- School of Economics and Maria Guada- cial economics. lupe, professor at INSEAD. The prizes MORE INFORMATION: are funded through a grant from The www.iesep.com

68 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE EMMANUEL SABONNADIÈRE, CEO DE GENERAL CABLE E&M JOSÉ FOLGADO TAKES THE STAGE AT GLOBAL High Wire Act LEADERSHIP SERIES “The challenge is not to get “Energy is the to the summit, but to get Key Factor down safe and sound,” said in Economic Emmanuel Sabonnadière, Growth” CEO and President of Gen- “What is really important in life is eral Cable Europe and Med- to be well-equipped with principles iterranean, explaining the and values,” said José Folgado, key to being a good director. president of Red Eléctrica Española (REE), during a recent presentation He added that the job goes that formed part of the Global Lead- “beyond management, to transformation of a company,” and ership Series held on IESE’s campus in Madrid. that a director must have “heart, courage and intelligence”. Folgado encouraged Executive Sabonnadière took part in the EMBA Global Leadership MBA participants to “tackle risks with enthusiasm and responsibil- Series on February 8 on IESE’s Barcelona campus, where ity. It is critical to set objectives he explained that his company sees Europe as a key market, and not despair if not all of them despite the cost of diﬀerent tax regimes. are achieved. Happiness or unhappiness is cul- tivated inside each of us. If your values and principles are clear, things will likely go well. But you must always act with humility, the foundation of decision making and leadership.” Folgado said he chose to study economics following a question that he has intrigued him all of his life: What leads to development in cities? “I wanted to know how to maximize well-being in a society, what affects people,” he said. “I SILVER MEDAL CEREMONY AT THE UNIVERSITY OF NAVARRA was very interested in explaining how government and markets share tasks, and what roles the two “Professionals With a Clear entities played. The market, if it acts alone, disrupts society. That’s why Sense of a Sprit of Service” politics is an art”. “IESE is what it is thanks to the where there are always new people,” l people who are here, who were which helps you stay young and where here and who will come here,” said you feel very appreciated, Weber said. Prof. Eric Weber, one of the recipients IESE’s Dean Jordi Canals, who also of the Silver Medal of the University of received an award, expressed similar Navarra. The medals were presented in thoughts: “Every good thing that in life December in Barcelona. In a moving has happened because there are many ceremony, presided over by the rector people around us who have helped us. of the University of Navarra, Alfonso What gives us cohesion is this sense Sánchez-Tabernero, recipients took that we have to try to change the world the stage to receive this special medal through business management, devel- which recognizes 25 years of dedica- oping great professionals who have a tion to IESE. The school is “a house clear sense of spirit of service.”

Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 69 P E O P L E A U T H ORS

A CHANGING WORLD CALLS FOR A NEW APPROACH TO MANAGEMENT Developing Global Leaders

is vital to ensure that the learning JORDI process involves immersion in such CANALS environments, says IESE’s Pedro Nueno. Former INSEAD Dean Dipak Jain, Leadership writing with Matt Golosinski, be- Development in lieves business schools need to sur- a Global World ___ pass conventional expectations in PALGRAVE MACMILLAN, order to shape the next generation 2012 of global leaders. Instead of traditional Western concepts of curriculum and success, Globalization is changing the they underscore the importance of l corporate context, which has entrepreneurialism and new value given rise to new and complex chal- models that reflect a desire to make lenges for business leaders. In Lead- a wise social impact. ership Development in a Global World: Prof. Jordi Canals The Role of Companies and Business MAKING HEADWAY Schools, IESE Dean Jordi Canals, Certain business schools are who edited the book, along with lalready implementing new pro- deans and professors from other top grasp the real state of the world to- grams that teach effective leadership business schools around the world, day: It is semi-globalized, neither in this complex, multi-societal world. outlines ways to bring leadership borderless nor encumbered by na- IESE incorporates the CAGE (Cul- development up to speed with the tional frontiers. As such, an effec- tural, Administrative, Geographic demands of this new era. tive business leader and Economic) must understand framework, along NO LONGER BUSINESS AS USUAL both global forces “Leadership with globalization- If the 20th century was “the and local contexts. related coursework l American Century,” then the While a leader’s development is such as GLOBE, 21st will be “the Global Century,” role is to provide critical to any into the core curric- marked by the increasing influence meaning for the corporation’s ulum of its MBA and of high-growth economies such as people working in success” leadership develop- China, India and Brazil, says Nitin a firm and to shape ment programs. Nohria, dean of Harvard Business the direction of an Harvard’s Field Im- School. organization, doing mersion Experience These new growth markets ur- so in a global context brings an added for Leadership Development aims to gently need to develop local talent twist. develop the global leadership capac- with a global mindset, and develop A global leader should have the ity of MBA students by giving them a leaders who are capable of managing capacity to seize different kinds of firsthand experience of working on across cultures and complex and un- opportunities and understand the a field project in emerging markets. certain environments, adds Canals. global forces creating them, says As Narayana Murthy, founder How can we understand the Nohria, who highlights efficiency, and chairman of Infosys, notes, greater scope of a global leader’s re- local responsiveness and innovation “Leadership development is critical sponsibilities and the competencies as the keys to value creation. to any corporation’s success.” required to carry these responsibili- This book is a start in bridging ties out successfully? ONE STEP BEYOND the gap between the current state of According to IESE Prof. Pankaj To develop managers to work leadership and the future demands of Ghemawat, it is first necessary to l in an international context, it the globalized business context.

70 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE CHARTING A NEW COURSE FOR MANAGEMENT The Human Touch That Will Revive the Firm

JOAN E. RICART & JOSEP M. ROSANAS

Towards a New Theory of the Firm ___ FUNDACIÓN BBVA, 2012

Adopting human and social values as explicit criteria is Prof. Joan E. Ricart Prof. Josep M. Rosanas the only way for the firm to regain credibility after the excesses that led us into the theories and trends that have come to society at their core and that apply dominate modern management prac- employee empowerment, emotional present crisis. tice over the past 30 years. Long before engagement and other related human- the crash, they argue, an entire corpo- istic management methods. “These Five years into the crisis, with rate culture and society had started firms have created a framework for lthe fall of corporate empires and down a slippery slope in the 1980s guiding decisions that make it legiti- a burst property bubble that has led to though its adherence to agency theory. mate to use social value or human val- thousands of home foreclosures, we The cult of the free market and the ues as explicit criteria,” she says. are still without an adequate map that maximization of share value led to a Andreu and Rosanas renew the will guide us out of the mess. situation where “we sought foxes as definition of good management, as- What is the role of the firm in so- our CEOs and then set them loose in serting that it is built on the concept ciety and how can we chart a new the henhouse,” the authors claim. of the human being as a whole person, course that will prevent the man- But it wasn’t just the CEO but with the organization designed to sat- agement profession from ever again whole companies that were reduced isfy the extrinsic, intrinsic and tran- sinking to such depths? to a mere balance sheet operation, say scendent motives of its members. In the book they have edited, IESE’s Rafael Andreu and Rosanas. IESE’s Antonio Argandoña takes Towards a New Theory of the Firm: Within such a culture, employees this a step farther, making the case for Humanizing the Firm and the Man- were reduced to self-interested incorporate social responsibility (CSR) agement Profession, IESE professors puts into the corporate machine. becoming a managerial rather than Joan E. Ricart and Josep M. Rosa- However, the seeds of change are organizational responsibility. nas attempt to answer these urgent being planted and in some cases are IESE Dean Jordi Canals says “the questions with contributions from already bearing fruit, says Rosabeth design of a more humanistic view of authors from top business schools Moss Kanter (Harvard Business management is the determination to around the world. School). She points to well-perform- end the divide between the values we Donald Hambrick (Penn State ing companies that have stepped out- think are right and useful in our private University) and Adam J. Wowak side the short-term, profit-maximiz- lives as citizens, and the values that we (Notre Dame) point to the economic ing paradigm and placed people and may bring to the business world.”

Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 71 P E O P L E A U T H ORS

INNOVATION ARCHITECTS Making the Unusual an Everyday Thing

who abhor the very idea of playing PADDY MILLER & politics. But companies are inher- THOMAS WEDELL- ently political and this is where the WEDELLSBORG concept of stealthstorming comes in. Stealthstormers don’t dismiss politics as being below them; they Innovation proactively deal with them from the as Usual ___ start. Successful stealthstormers fol- HARVARD BUSINESS low some simple, if counter-intuitive, PRESS BOOKS, rules when they make innovation 2012 happen. They embrace organizational politics; they seek mandates Rather than treat innovation from the middle; they are skeptical as an occasional and exotic of the spectacular; and sometimes, they avoid any mention of the word off-site activity, companies innovation. need to teach their managers Stealthstormers don’t use flamboyant techniques or methods to become innovation Prof. Paddy Miller that require special tools: they rely architects instead on small tweaks to proce- dure that can make a big difference. Organizations tend to approach tion architect. People have good ideas The authors cite Procter&Gamble, linnovation as if it were a sideline but they have to feel their ideas are go- which implemented a simple rule in activity. Every so often employees are ing to be welcomed by management. meetings: when discussing an issue, sent to what the authors call “Brain- Often the message people get from the most senior manager speaks last. storm Island”: an off-site location the organization is that they’re paid This minimally disruptive idea made replete with trendy lectures, creative to do a job, not to think. The challenge meetings much more innovative by workshops and overenthusiastic fa- is to permeate the making sure that cilitators. But once they return, it’s organization with a junior people with back to business as usual. IESE pro- culture of innovation People see novel ideas were fessor Paddy Miller and Thomas and to ask: how can the typical innova- also heard. Wedell-Wedellsborg suggest that a we do this job better, tor as a firebrand As the authors better approach would be for man- faster, safer? point out, if you agers to become what they call “in- Instead of brain- who hates to play decide to foster a novation architects,” creating an storming sessions, politics creative culture in ecosystem in which people engage in leaders should en- your workplace, innovation as part of their daily work. courage what the you must first take The book is aimed at managers authors call the “5 + 1 keystone behav- the time to explore a key question: rather than CEOs and the authors say iors” of innovation: focus, connect, Why isn’t it happening already? What the question is how to drive innova- tweak, select and stealthstorm. The is stopping our people from being tion right across the business. To do + 1 is: persist. more creative? The answer, they say, this, managers need to learn a new Many people think of the typical lies not in seven-step programs but in subset of competencies. One of the innovator as someone who fights the training managers to become innova- skills leaders need is to be an innova- system; idealistic young firebrands tion architects.

72 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE Complex Questions

and Laura Zapata-Cantu, present new research from authors around Understanding the world to illustrate how some Organizations companies are surviving and even in Complex, Emergent thriving in this new reality. and Uncertain They also illustrate how the future Environments workforce will need to become high- ___ Marta Elvira et al ly specialized and creative to meet PALGRAVE MACMILLAN, 2012 the requirements of increasingly project-based organizations, result- ing in a plethora of managerial and In Latin America, multination- social challenges. lals face growing populism and The task for management and nationalization of resources. Against society is to harness the potential this backdrop, they must learn how that a highly flexible workforce to harness innovation to remain offers for productivity. In this con- Prof. Marta Elvira competitive, despite limited resourc- text, companies must address the es, while simultaneously retaining increased workloads, greater stress motivated workers who are increas- and job insecurity that such devel- ingly moving toward knowledge- and opments bring. terests? Will boards recover their lost project-based work. The emergent landscape for cor- confidence in the wake of the global In the book Understanding Organi- porations, boards, shareholders and financial crisis? zations in Complex, Emergent and Un- other stakeholders raises numerous To ensure better governance certain Environments, IESE’s Marta other questions: Can shareholder ac- outcomes, all players must work to- M. Elvira, together with coeditors tivism rectify the perceived failure of gether, with the board taking the lead Anabella Davila, Jacobo Ramirez boards to adequately reflect their in- mediating role.

Better Than a Big Stick

forensic mode (as used in business), BRIAN O’C. the ceremonial type of speech (as LEGGETT on many social occasions) and the deliberate or more political type of speech. In each case the book gives a The Little Book of Rhetoric: model for the reader to copy as well as Soft Power some well-known examples. ___ The book also deals with the EUNSA, 2012 interrelated topic of “soft power,” the ability to attract and co-opt rather lThe Little Book of Rhetoric is than resort to force or coercion as a designed for all those people, whether means of persuasion. Here its four in business or any of the professions, key dimensions are discussed with Prof. Brian O’C. Leggett or indeed in the normal social milieu, clarity: empathy (of which listening is who are either attracted to the an essential part), vision, rhetoric and theme of speaking in public, or ﬁnd it non-verbal communication. Most of us essential for their social or business have, and have had, some successes model for soft power which is within lives. The book covers three types but many disappointments in the the reach of all of us to practice and to of speeches: the presentation or the area of persuasion. The book offers a become reasonably proﬁcient at.

Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 73 L I F E

MOONVES & DONAHOE MEDIA AND RETAIL REVOLUTION

The Wall Street Journal Viewpoints Executive Breakfast Series, Organized by IESE and BCG

eslie Moonves, content company and every new form packaged is constantly changing. “In CEO of CBS, and of technology enhances that.” any package we’re a part of it, and in John Donahoe, Moonves said that, while there is some cases we may be a bigger part of CEO of eBay, much talk about fragmentation, the a smaller package,” he said. were guests on fact remains that the only way you Sports is becoming a very compet- the Wall Street can reach 20 million people at once itive field and people have to decide Journal View- is through the networks. He believes how much money they are prepared points Executive that within 10 years the TV and the to spend to watch it. Breakfast series. These took place computer will be one and the same, He concluded on an upbeat note. Lon December 16 and January 30 and but thinks there will still be a sched- “I think everyone was waiting for the were sponsored by IESE and The ule and collective viewing. election and now I think we’re in for Boston Consulting Group (BCG). He said that CBS doesn’t look to an extraordinary and positive eco- people like Amazon and Google to nomic time.” LESLIE MOONVES provide content but to help with social “The way people are watching media. “But the walls are coming down JOHN DONAHOE l television has changed drasti- and Google might well buy a Holly- On January 30 it was the turn of cally, with streaming and video on de- wood studio. They’re probably the only l John Donahoe, CEO of eBay, to mand,” Moonves said. “The decline people who could afford to do that.” be interviewed. He began by saying in ratings doesn’t mean that no one Moonves added that he believes in that in the next three years we can is watching television. It reflects a de- local TV and thinks the system of lo- expect to see more changes in the cline in normal viewing but the other cal channels will continue for a long way people shop and pay than we’ve viewers aren’t being counted. We are a time, although the way channels are seen in the past 10 or 20.

74 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE Leslie Moonves John Donahoe

He predicted that the smartphone mon-sense dialogue about privacy so would have the same transformative as to avoid reactive legislation.” effect on consumer behavior that the “Big data gives He said he hopes that “President iPad has had on how we consume me- the customer Obama is going to get serious about dia. “The line between retail and e- a personalized the economy in this second term. commerce has disappeared,” Dona- experience based And I hope the White House can hoe said. “The consumer is in charge. on their retail reach out to business in an effective The consumer feels they’re holding a history” way so that together we can put pres- shopping mall in their hand.” sure on Congress.” He said that, having been ahead of JOHN DONAHOE Donahoe asserted that eBay’s the field, eBay had to catch up and to- core practice is to positively affect day it is not just an auction space and millions of people’s lives around the offers some 70 percent fixed price the credit card doesn’t give them that world through trade and particular- items and only 30 percent auctions. information. Online, however, knows ly through cross-border trade. “The He added that there are going to be a lot more about its customers. “Big founder, Pierre Omidyar, believes many winners in the transformation data can be used to give the customer that online platforms can contrib- of retail. “It’s not a zero sum game,” a more personalized experience based ute to world peace by connecting he said, adding that eBay tries to be on their retail history, but we don’t people,” he said. “Commerce can open to disruptive innovators. share this data,” Donahoe said. bring people together. We use local Offline retail knows how many peo- Continuing with the issue of priva- managers so when we have a global ple have bought what but they don’t cy, he said that “we need to get ahead management meeting it’s like the know who those people are because of the curve in order to have a com- United Nations.”

Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 75 L I F E

OSLO REYKJAVIK MUNICH LONDON ZURICH GENEVA WARSAW HONG KONG NEW YORK BRUSSELS MOSCOW PARIS TORUN ANDORRA SHANGHAI SINGAPORE LISBON MIAMI CAIRO DUBÁI

NAIROBI LIMA

THE LATEST ON IESE’S ALUMNI CHAPTERS CHAPTER NEWS

technological innovations are taken Julia Prats. The session examined ZURICH up by society before business has had the internal resources a company has November 26 a chance to incorporate them into and how to encourage innovation by their working practices. taking care of talent and giving em- Prof. Marc Sachon gave the ployees opportunities. lsession “The Tectonic Shifts January 23 in the Automotive Industry,” in December 5 which he discussed “tectonic IESE professors Pedro Videla movements” that are affecting the land Javier Estrada talked to In a new Continuous Educa- automobile industry. Miami alumni about the current ltion Program session Prof. Mike economic and financial situation Rosenberg discussed the challenges and future challenges. of doing business in an ever more com- MIAMI plex world and how to focus strategy November 28 NEW YORK and organization to overcome them. Members of the Southern At- November 29 llantic Club met in Miami, where DUBAI Prof. Sandra Sieber talked about IESE’s New York center hosted December 4 the transformation of the “digital lthe session “Internal Entrepre- society” given that, in contrast to neurship. What does it take? The Prof. Ahmad Rahnema delivered what happened in the past, many Challenge Within,” delivered by Prof. lthe session “How Wall Street

76 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE ooo&^Y[]Zggc&[ge'Ydmefa&a]k] ooo&loall]j&[ge'a]k]Ydmefa

and Main Street see ‘Other People’s Money’,” based on a case study written by Rahnema that was inspired by the film Other People’s Money. He raised questions about finance, management and accounting that are cov- ered in the film. The session was made possible by Isaam Kazim (AMP ‘12), Mahir Abdulkarim Julfar (AMP ‘12) and the World Trade Club of the Dubai World Trade Center. 1 SINGAPORE December 4

Singapore alumni held a net- lworking session between MBA students and local companies involved in Singapore Trek. MUNICH December 5 2 IESE Prof. Jaume Ribera used lcommon errors to illustrate his lecture to alumni “Learning from Failures in Project Management.”

February 7

In the session “Chinese Multina- ltionals go Abroad: Haier in Japan and Beyond,” Prof. Yih-teen Lee used the example of the arrival of Haier in Japan to describe the process of Chi- nese companies’ international expansion to alumni and guests. 3 LISBON 1. Zurich. 2. Munich. 3. Geneva. December 6

The occasional dinner-discus- The meeting was a dinner-discussion January 31 lsion was titled “Personal Fi- at which Vieira talked about the oil nances” and included a contribu- industry and the challenges posed Prof. Antonio Argandoña tion from Victor Barosa Carvalho, by sustainability, renewable energy, llooked down the road to recov- director of the Banco Privado do distribution and the relationship ery in the session “2013: crisis, reces- Atlântico-Europa. with regulatory bodies. sion, recovery, growth in the world economy,” analyzing key aspects of February 28 GENEVA the decisive international markets. Francisco Vieira, president December 11 February 27 lof BP Portugal, was the invited speaker at the session “Os Desaﬁos The December Bar of the Month The February Bar of the Month das Grandes Petrolíferas Mundiais.” lwas held in Geneva. lwas held in Geneva.

Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 77 L I F E

HONG KONG January 10

Many executives say that the l world has become less predictable and more complex. In the session “Decision Making in an Uncer- tain World”, Prof. Franz Heukamp reviewed some of the sources of increased (perceived) uncertainty and the related global trends; and asked which decision-making tools and habits can help us to navigate and manage this new world. Martijn Hoo- gerwerf (MBA ‘06) and the Regus LONDON Group helped organize the session. B9FM9JQ)/ January 19 The most recent Entrepreneurs Breakfast Meeting in London brought ltogether Paul Campbell, founder of Hill Capital Partners; Dominic Alumni met in Hong Kong for an Lake and Patrick Clayton-Malone, founders of Canteen; Ronnie Truss, linformal dinner. a restless entrepreneur who has been involved in the restaurant scene with ventures such as Fish! and investments such as Bincho Yakitori; and SINGAPORE Gabriel and José Luis González, cofounders, along with the celebrated January 14 Peruvian chef Virgilio Martínez, of the restaurant Lima. Prof. Franz Heukamp led the lsession “Decision Making in an Uncertain World” in Singapore. PARIS tion, were guest speakers at the Con- tinuous Education Program session OSLO December 11 “Entrepreneurship, a destiny.” Thanks to Alberto González de Riancho January 17 IESE and Harvard are closely (PDD ’94) and Solvay for their help. llinked, and Claire Mays, president Norway alumni met in Oslo for of the Harvard Club of France and its lan informal dinner. committee, invited IESE alumni to the WARSAW Harvard Holiday Party in December. December 12 SHANGHAI February 4 The Chapter held a pre-Christmas January 22 lmeeting of some 200 people with The guest speaker at the Dîner du invited speaker Prof. Pedro Videla. Second-year MBA students used lPremier Lundi in February was ltheir visit to Shanghai in January Catherine Lanvers, founder of The to hold the MBA Networking Cocktail. Living Springs, who talked about her LIMA experience as a social entrepreneur. December 13 & 14 TORUN BRUSSELS A breakfast was held for the visit- January 24 ling professor Joan Fontrodona. December 12 New members of the Peru Chapter and The Polish city of Torun hosted a its president Hugo Alegre (MBA ’91) lnew Continuous Education Pro- Thibaut van Hövell, CEO of Blue were also presented. The following day gram session led by Prof. Evgeny Ká- lFount, and Jean-Marie Delwart, Fontrodona led the session “Ethics in ganer entitled “Managing the Human president of various boards and found- Day-to-Day Business Decisions” at the Cloud: What Can Crowdsourcing Do er of the Jean-Marie Delwart Founda- PAD Business School. For Your Company?”

78 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE ooo&^Y[]Zggc&[ge'Ydmefa&a]k] ooo&loall]j&[ge'a]k]Ydmefa

MOSCOW January 29 YOU’RE IN THE NEWS ARE YOU IN THE NEWS? Prof. Evgeny Káganer led the We are interested in all your latest news. lsession “Managing the Human Send your comments to [email protected] Cloud: What Can Crowdsourcing Do For Your Company?” in Moscow, where alumni enjoyed the experience PDD-1-07 of visiting Google’s Russian head- AMP KENYA ’06 Just Piferrer has been appointed quarters, where the session was held. James Mwangi, CEO of director of operations ParkHelp, Equity Bank, has been named a company that looks for CAIRO “Personality of 2012” by Forbes technological solutions to magazine. He receives the honor problems of urban mobility. January 29 in recognition of his work for ______Equity Bank, the biggest bank in PMD ’11 The Spanish embassy in Cairo in- east and central Africa, with more The annual meeting of the PMD lvited alumni to a dinner at the am- than seven million customers ’11 class was held in Dubai and was bassador’s residence. They were ac- in Kenya alone. He also played a attended by dozens of participants key role in ensuring that banking from Europe and Middle East companied by Prof. Alberto Ribera. services, including loans, were region. The ﬁrst day was devoted within the reach of people on low to leisure activities and included NAIROBI incomes who previously had no a private visit to Burj al Arab. The access to them. second consisted of discovery February 12 ______meetings with two companies: IFP ’10 Dubai WTC presented by Hala Strathmore University hosted Manuel Pereyra has received a Kotb, senior manager of corporate lthe session “Self-Leadership grant as Reviewer and Scholar communications, and HSBC For Heightened Productivity” deliv- One of the CRJ Journal of the MENA, comprising Derek Lunt, ered by Prof. Alberto Ribera, who North American Case Research regional deputy head of commercial talked about the importance of self- Association. banking, Ammar Shams, regional ______leadership in order to disentangle head of corporate sustainability, oneself from the quotidian aspects MBA ‘86 Francesca McDonagh, regional of the business. The governing body head of retail banking and wealth of the Universidad management, Georges Elhedery, de La Sabana, in regional head of global markets and REYKJAVIK agreement with the Alexander MacDonald-Vitale, board of directors regional head of investor relations. February 14 of INALDE The gathering concluded with Business School, an academic session led by Prof. Prof. Eric Weber went to Iceland has appointed Luis Fernando Ahmad Rahnema followed by a lto talk to alumni about strategies Jaramillo as director of the networking cocktail organized in for controlling costs and maximizing business school. the prestigious Dubai WTC club. eﬃciency during the crisis. The ses- ______sion was titled “Strategies for Con- trolling Costs: A Second Look After Some Additional Years of Crisis”. PADE-I-01 ENTREPRENEUR María del Mar ANDORRA LA VELLA AMP MEDIA ’12 Raventós, Arnaud Collery has been chosen president of February 12 as resident entrepreneur at Codorníu, has 88mph, soon to be the biggest been awarded the Alumni met in Andorra for the technology incubator in Africa. He Entrepreneur of lconference “Economic Keys to will be focused on helping start- the Year Award Understanding 2012 and the Out- ups from the headquarters in Cape 2012, organized jointly by Ernst & look for the Future” led by professors Town, South Africa. Young, IESE and BNP Paribas. José Manuel González-Páramo ______and Josep Mª Rosanas.

Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 79 L I F E CLOSING CEREMONY EXECUTIVE EDUCATION

AMP-Brasil-2012 PRESIDENT2K]j_ag>&L]ap]ajY\]:YjjgkSECRETARY: Orlando Simões de Almeida

PMD-Brasil-2012 PRESIDENT2BgYimaeHYdY\ag

PMD-SP-Brasil-2012 PRESIDENT2H]\jgEYllgkaf`gSECRETARY: Virginia Ron Lozano

80 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE CHALLENGE YOURSELF, INSPIRE OTHERS

JOIN IESE’S PLD AND IESE’s Program for Leadership Development (PLD) is an interactive learning experience designed to provide a solid foundation in business. MOVE FORWARD IN YOUR CAREER. Its unique holistic approach to enhancing business knowledge and leadership capabilities will improve performance and shape you into a well-rounded executive ready to move forward in your career.

You will collaborate with a pool of high-caliber participants and faculty to develop a personalized Executive Challenge and a take-home agenda to ensure continued development.

The PLD consists of three 1-week modules on IESE’s Barcelona campus followed by a Short Focused Program in Barcelona or New York City. www.iese.edu/pld BUSINESS SCHOOL IN THE WORLD FOR EXECUTIVE EDUCATION [email protected] Financial Times, May 2012 I E S E & YOU

EXECUTIVE COMMITTEE ANNUAL MEETING MORE EDUCATION, NETWORKING AND ENTREPRENEURSHIP FOR ALUMNI 2,800 PARTICIPANTS AT THE GLOBAL ALUMNI REUNION

ooking back, it’s espe- as well as a special alumni club for cially surprising to see B2B, B2C and C2C made up of three the constant enthusi- separate sections to cover distinct asm and confidence, areas in the context of the school’s 2,768 PARTICIPANTS IN “alongL with IESE’s reiterated insis- ethical norms: CLASS REUNIONS tence that we look beyond and take Member Benefits: a place where the initiative: to be entrepreneurial, alumni can find special offers at more to internationalize ourselves, to seek than 300 establishments. They can out new personal opportunities, to also suggest new outlets and can of- work, and to create better companies fer their products. 35,758 ALUMNI TOOK PART and therefore a better society,” Jorge Business Exchange: members can IN THE ASSOCIATION’S Sendagorta (PADE ‘90), president establish business relationships, ACTIVITIES of the Alumni Association, writes offer and find products and profes- in the association’s annual report sional services such as marketing and which has been approved by its man- financial advice. agement committee. Members Exchange: a place where 40,044 In an event held simultaneously members can carry out sales, pur- ALUMNI on the Barcelona and Madrid cam- chases or rentals of everyday items. puses, Sendagorta reviewed the past year’s activities in which both RECOGNITION OF the quality and quantity of the Con- RESEARCH WORK CARRIED OUT tinuous Education Program sessions Jordi Canals, the dean of IESE, 122 COUNTRIES REPRESENTED (more than 300 around the world) l thanked the members of the BY THE ASSOCIATION has improved, as have the profes- Association and invited those tak- sional careers services offered to ing part to continue to act as a link alumni. The event brought together between their classes and IESE, a 285 class presidents and secretaries from community of more than 40,000 ALUMNI SESSIONS around the world as well as represen- alumni around the world. The meet- tatives from regional chapters, for ing closed, as it does every year, with the presentation of the association’s the presentation of the Research 713 2o13 budget. Excellence Awards which were giv- PARTICIPANTS IN en to professors Pascual Berrone, E-CONFERENCES FUTURE PROJECTS Domènec Melé and Pedro Videla. Mireia Rius, director of the These awards, which were estab- 196 l alumni division, announced lished in 2002, are presented in rec- SESSIONS FOR ALUMNI IN SPAIN that in the coming year a new ognition of IESE professors’ research platform for career opportunities work in three categories: best article, 89 would be launched for IESE alumni best book and best course. SESSIONS FOR ALUMNI

82 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE I joined the As- sociation to support IESE and the Alumni Association’s aims and I continue to be a member for the Continuous Educa- tion Program sessions and the opportunities that member- ship gives me to meet other alumni” DYE-SUN DE SWAAN (MBA ’08)

For many of The sessions are us the Association is a really extraordinary and safe haven where we feel broaden your horizons: it’s a protected: a refuge that helps luxury to be able to us to remain educated and attend them” informed” ROSER VILARÓ (PDD ’10) GLORIA PERRIER-CHÂTELAIN (EMBA ’93)

The Association gives you the opportunity to discuss things with experts and has helped me to develop a framework for my professional career and to deﬁne clear aims and objectives” MAYTE FORJAN (PDD ’04)

Research excellence awards .

BEST ARTICLE BEST BOOK BEST COURSE Professor Pascual Berrone, Professor Domènec Melé, Professor Pedro Videla, for his article “Corporate Governance for his book Management Ethics, for the course “INTEC - Applied International and Environmental Performance: Is published by Palgrave MacMillan. Economics” for its consolidation, utility, There Really a Link?” published in the social impact and generation of genuine Strategic Management Journal. course materials.

Alumni Magazine IESE APRIL-JUNE 2013 / No. 129 83 L A S T O WR OI R D Do We Need Economists?

ALFREDO PASTOR Professor of Economics, IESE

his question has been asked more the doctor’s recommendations and submits to the frequently in recent years. The prescribed treatment even if it is unpleasant. They same question was almost certainly will swallow bitter pills, submit to injections and all asked about doctors during the form of physical manipulation. On the other hand, Black Death. The analogy between those responsible for a sick economy tend only to the economist and the doctor can serve as a starting adopt those of the economist’s recommendations point in the search for an answer. that are painless or are in their own personal THow do we judge that a doctor is competent? We interests, and call all the other measures into expect them to be capable of correctly diagnosing question. While the patient may recognize that the disease and prescribing the correct treatment. their illness is often the result of their bad habits Most doctors know how to do both. On the other and promises to mend their ways, those responsible hand, if we ask an economist to cure a sick economy for the economy tend to blame everything on the we often see that, after six months or even two previous government, an international conspiracy, years, the economy is in just as bad shape or even on the bad harvest and in general on everybody worse. Naturally we will conclude that economists except themselves. Moreover, they will do it with are worthless and don’t know anything. Neither such virulence that it is not uncommon for the conclusion is correct. economist who insists that the medicine they have To begin with, it is not difficult for a group of prescribed is indispensable to end up in jail or exile. economists to diagnose an economy as sick because The difference between the effectiveness of the there is not a long list of illnesses. Nor would there doctor and the economist therefore does not reside be great differences between them when it comes to so much in differences of knowledge, although they prescribing treatment. Certainly some economists, exist, as in the disposition of the patient. those of a naturopath persuasion, would say the best Can economic data and arguments be of any use thing was to just let the patient rest and let it cure to ordinary people in their daily life? Of course. itself, while other more conventional ones would Economics after all, is a term that derives from recommend some form of medicine. Some, of the home management, and this continues to be a homeopathic persuasion, would dare to recommend good guide. A family with good habits usually has a more public spending in order to cure the deficit. solid economy. Bad economic habits in the family Others, however, would suggest more extreme context have the same bad consequences when measures such as amputation (this school is gaining they are extrapolated across the entire country. If followers in Spain). But if the economists put the the national accounts don’t add up the same things patient’s interests first they will arrive at a treatment happen as when the family budget doesn’t (although that perhaps contains an element of each of these, the disaster may take a long time to emerge). each applied during different phases of the illness. Economists can offer ordinary people two pieces of So how can it be that the patient simply gets advice: firstly that they don’t let their government sicker? This is the fundamental difference between do what they wouldn’t do at home and secondly that medical practice and the economist’s sad profession. they won’t let them make decisions that they don’t The individual patient usually pays attention to understand. Isn’t this useful advice?

84 APRIL-JUNE 2013 / No. 129 Alumni Magazine IESE Take Your Place. Get Ready to Perform

Extreme Brand Global Web Content Integrated Multi-Channel Targeting, Profiling & Management Management Publishing Personalization

Sucessfully engage with your audiences through multiple websites, in multiple languages, across multiple channels, with multiple brands. Online Customer Experience Management

BARCELONAIESE GLOBAL ALUMNI REUNI ON S AVE THE DATE: NOVEMBER 8 www.sdl.com One day, RICOH imagined collaborating with the world’s best business schools. It imagined that students from these schools could access to the right information, in the right place and at the right time. It imagined an excellent service for the future executives. That goal was achieved.

One day RICOH imagined change.

/ricohspain 900 818 302