Dear Alumni and Friends,

You'll notice that Dividend has a new look, introduced by graphic designer Carol Taylor. This issue begins Dividend's 21st year of publication (the first issue appeared in the Spring of 1969) and the updated look seems a good way to celebrate the magazines birthday. Thanks go to Carol for the new design.

We are all delighted about the new S2.5 million grant from Ford Motor Company to fund a combined business, manufacturing, and engineering program. The grant was announced by Ford Chairman Donald Petersen when he received the 30th annual Business Leadership award here at the School in January. \Ve are grateful for the endow­ ment, which will help significantly in preparing future leaders for manufacturing careers. For more details about this, see page 23.

Another exciting highlight of this spring was the Third Annual Corporate Finance Forum, sponsored by the J. Ira Harris Center for the Study of Corporate Finance. This Forum focused on corporate takeovers — are they good or bad for the nations economy? The Forum was preceded by a talk given by prominent takeover attorney Martin Lipton. who spoke on "Corporate Governance: Major Issues for the 1990s." A story about the Forum appears on page 24.

Sincerelv. ^UAJ: <£^> Gilbert R. Whitaker, Jr. Volume 20, No. 2 " Spring, 1989 Dividend

The Role of the Entrepreneur in Society 2 By Everett Berg, MBA '48 What motivates entrepreneurs and how do they affect our economy? The author, who as chairman and CEO of EBCO Enterprises has spent many years as an entrepreneur, ponders these questions.

The Biggest Garage Sale in Town 6 By Mary Jo Frank Hugh Wenk, MBA '58, sells a constantly changing inven­ tory of over 2,000 items as the U-M's manager of property disposition. Recent bargains include fake sheep skins and an electron microscope in excellent condition.

Ten Great Years — A Special Section 7 Highlights of a decade in the life of the Business School, during which we made the leap into the top echelons.

A Year for "Maintenance of the Mind" 17 By Kathy Hulik An interview with Joan Richardson, the first Knight Fellow About the Cover in Business and Economics and one of 15 Michigan Journal­ Our cover features the cake which was baked ism Fellows who spend a year here reading and thinking. to celebrate a momentous decade in the life of the School. The cake was created by Ivan the Baker in the Food Services Department of Eating Well in the Executive Residence 20 the Executive Residence. A profile of Anne A profile of Anne Flora, director of Food Services for the Flora, who directs that department, appears in this issue on page 20. Executive Residence, who has done everything from print- making to running a bed and breakfast house in Wales. The cover photo is by Larime Photographic Studios. Among Ourselves 23 Dean: Donald Petersen of Ford receives Business Leadership Gilbert R. Whitaker, Jr. Award and announces a $2.5 million grant to the Business Associate Deans: and Engineering Schools; Harris Center Forum considers Thomas C. Kinnear; Edwin L. Miller; the current takeover environment; speakers from Lionel B.Joseph White; Anneke deBruyn Overseth, Trains talk about manufacturing in transition; Europe 1992 Associate Dean for External Relations considered; researchers talk about ways human resource practices can give companies competitive advantages; Editor: Pringle Smith symposium held on the changing direction of the luxury car market. Editorial Assistant: Lisa Cripps Class Notes 30 Designer: Carol Ann Taylor Marketing Communications

Copyright © 1989 by the Michigan Business School

Printed by the University of Michigan Printing Services. This publication is made possible through the generosity of private donations. The Role of the Entrepreneur in Society

Millions of entrepreneurs allocate capital by recognizing opportunities where no central planner could find them, fulfilling needs that no politician has imagined, and finding resources where no bureaucrat could uncover them.

By Everett Berg, MBA '48

f late entrepreneurship has been elevated to Rather than entrepreneur, I prefer another word. I think almost heroic proportions. Depending upon of myself as a craftsman — a cathedral builder if you will — the ideological prism through which one's identifying needs, creating enterprises, and demanding the views are filtered, the entrepreneur is either best of myself and others in order to excel in a particular the font of economic growth and prosperity, field. Oor conversely a source of greed and disequilibrium in our Today I want to share with you my insights into the role economy. In either case the entrepreneur is considered to of entrepreneurs in this dynamic expanding and global be motivated by a primal urge for control, recognition, and economy. But, what I have to say boils down to this: we wealth. need leaders and craftsmen, people whose insights and in­ Most people would call me an entrepreneur. I have start­ spiration, dedication and work, cannot be explained by ed a number of different enterprises. Many of them have money, or indeed by any other simplistic motive that would succeeded. But when I hear people talk about what moti­ reduce people and societies to machines. vates entrepreneurs, I don't recognize myself. I have never Those politicians, economists, and philosophers who consciously pursued great wealth, power, or prestige. I have downplay the role of the entrepreneur are usually the same never judged my success in terms of size — size of enter­ people who tend to think of the economy as a machine, a prise, position, or reputation. I suspect most entrepreneurs mechanism that can be run from a central command, pro­ feel the same way. vided we correctly manipulate certain macroeconomic in-

2 Dividend puts and outputs. But, for a truly dynamic economy, we Schumpeter saw the economy as a cycle of birth and need people who wouldn't fit into any machine. death. Old bureaucratic organizations unable to respond to Yet this theory of the economy as a machine has a long consumer needs are dying constantly. They are replaced and impressive history. In fact, it has probably been the with new, young, energetic organizations eager to seize op­ dominant view for over a century. portunity. Few of these new organizations will survive, but One of the most important political economists of the late — in this process of perpetual regeneration — the best will nineteenth century was not a professor at all, but Otto Van become tomorrow's biggest. Bismark. Bismark and the German intellectuals surround­ In its pure form, this organic market is wonderfully self- ing him pictured the economy as a mechanism rather than correcting and astonishingly flexible, responding not to an organism. commands from the top but decisions from the bottom. Pictured in this way, it is easy to imagine, as Bismark did, Consumers voting with their pocketbooks drive the free that the economy can be manipulated for the public good market system. Unfortunately we rarely see this market in by giving centralized control to a right-minded elite. To the its pure form. German intellectuals, the free market seemed uncoordi­ One of the most powerful human impulses is the desire nated and inefficient. to protect one's turf. That desire leads directly to monopo­ German social democratic ideas for management of the listic tariffs, restrictive regulations, and punitive taxes that economy gradually spread through Europe in the next 50 hamstring the market organism. The history of economics years and reached their apex in England after World War II is a recurring history of such short-sighted errors. championed by the ideas of John Maynard Keynes. Fortunately, today the trend is in favor of free markets. Keynes held a far more sophisticated view, of course. People and governments all over the world are recognizing Keynes regarded himself as a defender of free markets. But that economic systems should organize from the bottom up his explanation of how the government could control the rather than the top down. business cycle revealed the same picture of the economy as The three most successful postwar economies, the U.S., a machine. Keynes' exaggerated faith in macroeconomic Japan, and West Germany, all serve as brilliant examples of manipulation as the guarantor of prosperity was eagerly the power of the individual and the central role of entre- embraced by statists everywhere. Keynes seemed to be val­ preneurship in economic growth. idating the statist belief in central control for the common Yet the more remarkable fact is how rapidly free market good. ideas are spreading in unlikely places. In China and the By the time I entered college, economics seemed to con­ Soviet Union, the two foremost communist nations on sist entirely of static supply-demand curves and dry statisti­ earth, there now seems to be a consensus that central con­ cal analysis. Academics and policy-makers made almost no trol destroys economic growth. attempt to understand or describe the wellsprings of eco­ I say there seems to be a consensus on this point because nomic activity, or the way in which a free market system these days one never hears of a Chinese or Russian leader really functions, in all its complexity. saying that socialism is good for growth. That does not mean Russia and China will become free market nations. They may remain socialistic for other reasons. But for the communist superpowers even to be consider­ "I think of myself as a craftsman — ing free market reform is a development of enormous im­ portance. To the lesser nations of the world, the a cathedral builder if you will — identifying superpowers represent a range of role models. Certainly few societies in the future will be inclined to pursue a statist needs, creating enterprises, and demanding path if the communist superpowers admit that, economi­ cally speaking, socialism has failed. the best of myself and others in order to The point is that the global free market is a lot bigger than anyone could have imagined 15 years ago, and it is excel in a particular field." likely to get bigger still. The world is awash with oppor­ tunities that have been ignored for years. But we must take care not to forget the true sources of Of course, there were counter-currents. Joseph Schum- our prosperity. peter, far more radical than Keynes, made a direct assault It is true we have our problems at home these days, and on equilibrium economics. He argued that economic yet we are still experiencing a tidal surge of economic op­ progress was solely the result of product or service innova­ portunity. This opportunity is being created by the entre­ tions that destroyed equilibrium. preneurial dynamism of the American economy. Schumpeter called this crucial process of innovation You have all probably heard that the U.S. has created "creative destruction" and regarded it as unpredictable and over 17 million jobs in the past eight years. That is greater unprogrammable. For him the goal of economic policy was per capita and in total than any other major nation on not to plan progress but to facilitate creative destruction. earth.

Spring 1989 3 I hope some of you also know about the work of David L. billion in start-up and follow-on funds every year. This Birch, whose monumental research project at MIT has in­ money does not on the whole come from formal financial vestigated the source of this explosion in employment.* markets, which in a good year provide less than $10 billion Birch and his team assembled a massive data base track­ for new firms. ing the vital statistics of 12 million American companies Overwhelmingly, entrepreneurial capital is raised from from 1969 to 1985. the entrepreneurs themselves, and their family and friends. The results were stunning. The money comes from personal savings, from remortgag- Birch's initial studies covering the period from 1968 to ing a house, from a spouse's earnings. It is never enough, so 1975 concluded that 80% of all private sector jobs were the entrepreneur creates yet more capital out of his own created by companies with less than 100 employees. drive and will, his vision and desire. He works long into the Birch later updated his work to cover the period from night. He persuades partners and co-workers to give more 1981 through 1985 and concluded that for this period 88%. of themselves for "the cause" than they would give for any of all new jobs in the private sector were created by com­ mega-corporation. panies with less than 100 employees. He then took a different cut at the problem. He defined firms not by size but by whether they fit certain criteria for the entrepreneurial firm. Only about 19 percent of grow­ 'People and governments all over the world ing firms fit the entrepreneurial profile. Yet that 19 percent provided 86 percent of the new jobs are recognizing that economic systems created by all growing firms. In other words, almost all new jobs come from small entrepreneurial companies. should organize from the bottom up rather Finally Birch examined why and how various regions of the country added or lost jobs. than the top down." And here is probably his most important discovery: every area of the country, he found, experienced approximately the same rate of gross job loss. A command economy that discourages entrepreneurs Growing areas lost existing jobs at the same rate as de­ permanently denies itself this extra human capital that en­ clining areas. trepreneurs create. But growing areas created new jobs much more quickly. Sometimes when we see big, broad problems in the Almost invariably those replacement jobs came from small macro-economy — problems like the trade deficit, or de­ entrepreneurial firms. clines in key industries, or unemployment, it is tempting to In other words, equilibrium is a loser. Job loss is a con­ say that we need stronger directions from the government stant, steady-state phenomenon. The only thing that adds in order to compete. net new jobs is a high rate of entrepreneurial activity. That is a common and very human error, the same error The percentages that Birch has used for small-enterprise made by Bismark and Keynes. job creation are sometimes attacked as being too high and, But the reason we cannot see whether our nation is re­ in fact, Birch acknowledges that small enterprise job cre­ sponding to these challenges is that in reality these new ation varies from period to period based on the experience challenges do not manifest themselves as the vast trends of larger businesses in the economy. But one conclusion is familiar to the economist. incontestable. The single biggest force in the current boom These challenges occur as millions of little contests, each is the innovative power of small entrepreneurial firms. The among a handful of companies or individuals — contests to best use of capital in our economy is to liberate it to flow get a new product to market, to solve a technical problem, towards entrepreneurial, innovative firms. to cut a cost, to increase an output. The challenges to our In our system, millions of entrepreneurs and investors economy are answered by the individual efforts, adjust­ allocate capital by recognizing opportunities where no cen­ ments, and innovations of millions of entrepreneurs and tral planner could find them, fulfilling needs that no politi­ managers and tens of millions of workers. cian has imagined, and finding resources where no There are two ways to deal with challenge and change. bureaucrat could uncover them. You can put a central commander in charge of choreo­ Subsidies, restrictive regulations, high taxes, and all the graphing the responses of every individual in the system. other tools of central control all divert economic resources Clearly an impossible task. from their best uses, wasting or destroying their value. Or instead, you can create conditions under which each The entrepreneur, however, not only attracts capital, he individual in the system can flexibly cope with the changes creates it. that come his way, creating in the process an intricate fil­ New businesses in this country use approximately $40 agree of interrelationships that are the organizational strength of a free market system. * Birch, David; Job Creation in America; Free Press; New York; People who advocate centralized control over the econ­ 1987. omy make the same error as the manager who doesn't dele-

4 Dividend gate. They don't have enough faith in their fellow citizens. I make these points not because I really believe that When it comes right down to it, they don't regard them as America will turn away from economic liberty. On the con­ equals. trary, these days whenever I worry about some new out­ All people have the same essential desires, creative urges, break of statism among our leading economists, I try to and motivations. The golden rule is just about the best pol­ remember how bleak things looked when I graduated 40 icy you can follow in psychology, politics, management, or years ago. The intellectual climate for freedom has im­ economics. proved, here and all over the world, and I think it will get Do unto others as you would have them do unto you. better still. Give others the same freedom that you would demand for Rather I am trying to convey to you the excitement of the yourself. True freedom opens the floodgates of creativity world that awaits you even if you never take the plunge of and enhances the prosperity of all. starting your own enterprise. In this decade, not one of the nations of the world has But as you look ahead to your careers, please remember adopted socialism. People have embraced the market sys­ that with few exceptions the dynamism in our economy tem not only because it is more efficient, but because it is does not come from large corporations. Our economic the only method by which our needs and desires can be leaders are mostly to be found in small companies, small adjusted to those of others without coercion or the arbitrary companies founded by people like yourselves, trained in the intrusions of authority. That is why Alexander Hamilton same skills you have mastered here. said that the strength of a market system is primarily spiri­ I am proud to have received my education from this tual because it expands the range of human freedom while great institution, and proud to be here among you today. increasing the scope of human endeavor. But I will be prouder still if in some small measure I have For entrepreneurs the freedom to create — which de­ encouraged some of you to enter the wonderful game of pends on the free movement of capital — is as essential as business in the most indispensable of all roles: as freedom of speech is for a professor, or freedom of the entrepreneurs. press for an editor. E32 Capitalism deserves our loyalty not merely because it is productive, but because it is just. Moreover, the justice of capitalism is the source of its productivity. The simple justice of capitalism is that people are re­ warded in accordance with what they produce for society. To do so people are free to choose whatever pursuit legitimately maximizes their happiness. It is a system of well-defined and enforced property rights under which people can freely engage in transactions which offer each party mutual advantage. In that important sense transac­ tions both individually and totally are inherently "wealth- creating". It is the only system where, in the absence of political intervention, economic power cannot be concen­ trated. While it is not a system that replaces moral con­ science, its emphasis on economic cooperation rather than coercion makes it the most congenial system in which social virtue can otherwise flourish. Moreover, capitalism ensures that economic resources will flow to those who use them most productively. Profits, as Schumpeter proclaimed, flow to those innovators and entrepreneurs who are the true source of prosperity. When economic resources are directed by government, those resources will almost certainly flow to established or politically favored institutions. In a society that rewards pol­ itics rather than productivity, greed and bickering replace effort and imagination. About the author: Mr. Berg is chairman and CEO of EBCO Enterprises, a company with diverse operations in In my view, such a system is unjust. But morals aside, retirement housing, electronics, energy conservation, gold such a system is certainly unproductive. and silver mining, and real estate development, with head­ The entrepreneur is the agent of creative destruction, quarters in Emeryville, Calif. He is also the founder of the Schumpeter's terrifying and glorious angel of death, by Everett E. Berg Professorship in Business Administration whose solemn verdicts capitalist economies constantly re­ at the Business School. This article is excerpted from re­ new themselves. Central control of the economy destroys marks he made to students when he visited the school to creative destruction. give a Dean's Seminar.

Spring 1989 5 Alumni Profile: Hugh Wenk, MBA '58 covers ("they work great on hot vinyl seats"), under sheets for a softer bed, as blankets for pets, or for craft projects. Pointing to a heat lamp marked $75, Wenk says, "We The Biggest Garage can't give that thing away." However, Property Disposition has no trouble selling incubators used in pediatrics. He has sold about 10 for $75 to $100 each to breeders of exotic Sale in Town parrots. By Mary Jo Frank Wenk and his staff of two sales associates, one stockper- son, and an administrative assistant also sell commercial kitchen grills, construction trailers, hundreds of doors, op­ erating tables, and obsolete medical equipment. Property Disposition has sold boats, a motor home that was donated to the University — even an airplane. "We have an electron microscope now. I'd like to get $18,000 for it," Wenk says. His marketing strategy for the electron microscope in­ cludes contacting dealers and former customers, asking the department selling the microscope for suggestions of po­ tential buyers and advertising nationally. "The microscope is in excellent condition. The number of hours of use are low for its age because it was used for research, making it more valuable. I haven't found someone who thinks it has the same value I think it has," Wenk admits. Property Disposition sets prices for its varied inventory based on a number of factors, including previous experi­ alking out of Property Disposition clutching my $5 ence with similar items, current retail price, technological Wwhite lab coat, I saw Hugh A. Wenk, MBA '58, for obsolescence, and advertised prices for similar merchandise what he is: a super salesman. Since childhood I have dis­ in trade magazines. liked white lab coats, avoiding people who wear them, like "It's just a pulse. You have to recognize the kind of thing some people avoid black cats. Now I own my own white you're selling," Wenk says. For those who think that sounds coat; it makes an excellent apron. too simplistic, Wenk notes he can get higher prices for com­ Wenk, the University's manager of property disposition puters built in 1973 and 1974 than those built more recently since 1980, says, "We run the biggest garage sale in town — (after the United States went off the gold standard) because the most versatile, too." manufacturers used more gold on computer cards then. His constantly changing inventory of more than 2,000 People buy computers prior to 1974 for their gold content. items is housed in a 10,000-square-foot warehouse at 3241 "You're better off if you know that so no one pulls your Baxter Road, on the northeast fringe of North Campus. leg," Wenk says. Property Disposition accepts merchandise from University Wenk jokingly offers buyers two types of warranties: "as departments and sells the merchandise on consignment, is" or the "extended warranty — to the door." retaining about 10 percent to cover costs. Wenk, who earned a master's degree in marketing from Discarded desks, tables, chairs, and computer compo­ the U-M, has a broad business background, having worked nents are Property Disposition's staples. Customers almost in marketing for Ford Motor Co. He also owned a chrome- always can find bargain-priced office furniture. plating business in Detroit and ran a retail store. Popular items like four-file drawer cabinets are recycled When items like chairs come in by the hundreds, Wenk back to University departments, Wenk says. "We have wait­ sometimes resorts to a progressive markdown to move them ing lists for departments needing file cabinets. The office quickly- furniture is in excellent condition. Why sell a used file cabi­ "We're so packed we can't afford to fool around with $2 net to someone for $75 when the University would have to chairs and not take in other, more valuable merchandise," turn around and pay $175 for a new one?" Wenk says. Wenk, who earned his way through college selling cars, In all, Property Disposition annually sells more than appears to sell almost effortlessly, items that less creative $500,000 worth of merchandise. However, Wenk admits: types might consider "white elephants." "We're not magic. We scrap too." Occasionally even he has "See these fake sheep skins? Very big sellers," says Wenk, to call in a dumpster. holding up a 30-inch by 24-inch rectangle of fleecy white fabric used in hospitals to prevent bed sores. The fake sheep skins, which sell for $1 each, are used as car seat (Reprinted by permission from The University Record)

6 Dividend Since Gilbert R. Whitaker took over as Dean of the School in 1979, the size of the faculty has grown from 71 to 122; 10 we have thirteen new joint degree pro­ grams; applications to the MBA Day program have increased by 60%; ten named professorships have been added; r we have exchange programs with six European business schools; three new interdisciplinary research centers have been established; the number of com­ GREAT panies recruiting our students has increased from 296 in 1979180 to 465 in 1987188; a collaboration with the n'lh • Unisys Corporation has resulted in so­ YEARS phisticated computer capabilities; and three new buildings have been com­ pleted through a successful $15 million capital campaign. For more highlights of these ten great years, see the follow­ ing pages.

Spring 1989 7 Gilbert R. Whitaker, Jr. The Placement Office The Michigan BBA pro­ becomes Dean of the reports that 298 organiza­ gram is chosen one of the School in January. Some tions scheduled over 8,000 two best undergraduate of his goals for the School interviews at the Business programs in business (the include: adding substan­ School. Starting MBA sal­ other one was at the Uni­ tially to the faculty and aries averaged $22,200; versity of Pennsylvania). incorporating the evening starting BBA salaries were The rankings are done by MBA teaching into the $15,500. business school deans and regular teaching load; top industrial personnel adding to and upgrading executives. the business school facili­ The Black Business Stu­ ties; launching a full scale dents Association sponsors development program; its third Black Alumni and putting the Business Day. Six Black MBA grad­ School into the very top uates and 17 Black BBA ranks of the nation's lead­ graduates were honored along with three new Gilbert R. Whitaker,Jr. ing business schools. Black PhD graduates.

The Business School's ex­ isting space is adapted to , meet updated needs by converting several of the old classrooms into case- 1980 Frank Wilhelme rooms, creating new Eighteen new faculty are Frank Wilhelme is hired to faculty offices, and re­ added to the Business be the first full-time direc­ modeling the admissions School staff, partially be­ tor of alumni relations and student services of­ cause the evening MBA and the annual fund. fices and the Dean's office. teaching is now being Frank starts a series of incorporated into the alumni receptions, con­ regular teaching load in­ ducts an alumni census, Anneke deBruyn Overseth stead of being taught on and begins the first Anneke de Bruyn Over­ an overload basis. This student-alumni forum seth is appointed first new program, initiated by and the first student Director of Development Dean Whitaker, encour­ pledge program, all in for the Business School. ages regular faculty to that first year. He also be­ Her job includes the spend more of their time gins work on the School's coordination of all of the doing research. annual fund. fund-raising efforts with alumni, corporations, and foundations. She is also to be involved in the planning for a capital campaign for badly needed new building facilities.

Dr. Robert K. Mautz is appointed Director of the Paton Center for Ac­ counting Education and Research, and launches a major interdisciplinary The newly formed Devel­ ing seminar give a presen­ study on the state of the opment Advisory Board tation on fund-raising, art in internal controls. meets for the first time. and discuss plans to raise They hear a student team money for three new from an advanced market­ buildings.

8 Dividend JKi grams to free up money to keep the most outstanding programs funded and to maintain the University's faculty excellence.

In the face of these hard Claude Martin, Stanley Winkelman, Harold Shapiro, times, private giving to Dean Whitaker the school goes from $553,000 in 1980 to over A new chair, named the $900,000 in 1981. Isadore and Leon Winkel­ man Professorship of Retail Marketing, is estab­ lished this year. It is given to the School by the Wink­ elman Brothers Apparel With the Regents' ap­ housing the computer fa­ Foundation, Inc., the Leon proval of the basic plan for cilities and the Division of and Isadore Winkelman construction of three new Management Education families, and the officers, buildings in the Business Programs, and an Execu­ directors, and friends of School complex, the pro­ tive Residence for Winkelman Stores, Inc. ject proceeds to prelimi­ participants in the Execu­ Reading the Alumni census forms nary design stages for a tive Education programs. Also in 1980 . . . Dividend Getting in touch with our new library, a structure starts a Class Notes section graduates becomes a ma­ which runs to only three jor theme for the alumni pages . . . the first Growth office. A series of recep­ The Dean's seminar Capital Symposium is tions is organized in major series is inaugurated, with held to bring together cities across the country at William Davidson, presi­ 1982 company executives, which Dean Whitaker and dent and chief executive alumni are able to become officer of Guardian In­ A $100,000 grant from bankers, and investors, the Charles J. Strosacker and thus encourage diver­ acquainted; faculty mem­ dustries, as the first bers start to speak at speaker. This series brings Foundation is given to sification and growth of support summer research Michigan's economy. luncheon and dinner executives to the Business meetings organized for School to speak informally activities by junior faculty alumni in different parts with a small, invited members. The fellowship, of the country. group of students who are known as the Olin W. chosen based on their in­ Blackett-Charles J. terests and the topic of the Strosacker Fellowship, speaker. The Dean's honors Olin Blackett, the 1981 seminars provide an op­ School's first professor Hard times. State appro­ portunity for interaction of statistics and business priations to the U-M with top executives that conditions, who was a decline from almost $73 students would otherwise member of the faculty million in 1972-73 to less not experience. from 1924 until he retired than $56 million in 1981. in 1965. The recession leaves many people wondering if the A huge response is gener­ "Saturday Morning at the State's economy will ever ated by the Alumni Business School" begins. be the same again. Budget The School publishes its Census, and Dividend re­ These programs are held constraints require the second annual report, ceives so many interesting on football Saturdays and University to use its entitled "Update" and Class Notes that a special consist of a talk by B resources ever more covering events from July, issue is devoted to alumni School faculty members carefully, and some hard 1980 through June of profiles. followed by a pre-game choices have to be made 1981. brunch, and turn out to about trimming and even be very popular with eliminating some pro­ alumni.

Spring 1989 9 The Library joins the Re­ The Growth Capital Sym­ A new five-year experi­ Dwight F. Benton leaves search Libraries Group, a posium, which began in mental program in a bequest establishing a partnership of major uni­ 1980 with about 100 par­ accounting is announced. $1.5 million endowed versities and research ticipants, by this year has It will allow qualified stu­ professorship and a $1.5 institutions, and begins grown to a group number­ dents to earn both a BBA million permanent endow­ using Research Libraries ing 280. The two-day degree and a master's in ment for scholarships at Information Network, an Symposium attracts inves­ accounting in five years. the Business School. An­ online, machine-readable tors from all over the The new "MAcc" program other bequest of more database for cataloging. country, and provides an will begin accepting stu­ than $500,000 comes This enables our library to opportunity for entrepre­ dents in the fall of 1983. from the estate of Lillian develop a shared online neurs, venture capital Green Dykstra whose hus­ database within the Uni­ bankers, and special ser­ band, Professor Dykstra, versity and with other vice providers needed by taught business law at the major libraries. fledgling companies, to School for many years. get acquainted. David 1983 The fund is for awards to Brophy, associate pro­ The first Peat, Marwick, students who intend a ca­ The first Student Award fessor of finance who reer in teaching business for Teaching Excellence is Mitchell & Co. Professor­ started the Symposium, ship in Accounting is administration. given this year. Its winner says its objective is "to help is George B. Cameron III, established under the develop an atmosphere leadership of Charles T professor of business law. that encourages the Nomination for the award Smith, Jr. managing part­ growth of entrepreneurial ner of the Detroit office, is done by student ballot companies in Michigan." (about 250 ballots were and Robert W. Scharff, submitted), and final BBA '69, partner in the selection is by a four- Detroit office. Also foun­ member student-faculty ded this year is the Ernst committee. & Whinney Professorship in Accounting, given by alumni and friends of the It is a clear, cool, sunny pledges of just over $10 School employed by Ernst October day when the million, with the major & Whinney, and matching School breaks ground for alumni effort getting un­ grants from the Ernst & the new Kresge Business derway. Included in the Whinney Foundation. The Peter deVaux Administration Library total is a $2.5 million chal­ effort to establish this pro­ and the new Computer- lenge grant by the Kresge fessorship is led by Arthur "Obviously, the School Executive education Foundation of Troy, Mich. P. Bartholomew, MBA '40, can't talk to 18,000 alumni center. At this time, the for the construction of the Robert D. Neary, BBA '55 in a two-way dialogue," Business School has new library. and Philip C. Berry, MBA said Peter deVaux, BBA '53. Also the Price Water- '66, MBA 70, chairman of house Auditing Professor­ the newly created Alumni ship is established this Society Board of Gover­ year, as well as two Arthur nors. "I see the Board as a Andersen professorships surrogate for the mass of — one in accounting and alumni who don't have a one in computer and in­ means of communicating formation systems — effectively with the which are founded under School. We can give the the leadership of Richard School some direction on Measelle, managing part­ what alumni would like to ner, and William Adams, have the School do for BBA '57, MBA '58, part­ them, and we can be an ner in the Detroit office of extension of the School's the firm. resources for building that connection." The alumni board is composed of 21 graduates of the School.

10 Dividend A chapter on the Michi­ and control; the best gan Business School is dissertation of the year included in a new book, 1984 award from the Consumer entitled The Insider's Burroughs Corporation Psychology Division of the Guide to the Top Ten and the Business School American Psychological Business Schools. The come to a $12 million Association was won by chapter is written by Len agreement to install a Michael D. Johnson, Savoie, MBA '80, an ac­ highly sophisticated com­ assistant professor of count executive for a New puter network at the marketing; and the out­ York advertising firm. Business School. During standing tax manuscript the first phase of the pro­ award of 1983-84 was gram, Burroughs will presented to Michael W. A five year, provide approximately $6 Maher, associate professor million dollar million in computer hard­ of accounting. In addi­ challenge ware, software, support, tion, Wilbur K. Pierpont, grant is estab­ and services. The Business The School's first Alumni professor emeritus of ac­ lished by the School will contribute an­ Directory is published, counting who served the J. Ira and other $6 million in new with more than 11,000 University as vice presi­ Nicki Harris facilities and equipment, alumni answering ques­ dent and chief financial Foundation and in research and oper­ tionnaires to bring their officer for 25 years, to increase ating personnel. records up to date. The received the First alumni sup­ Directory is organized into Distinguished Business port of the Business three listings — one by Faculty members receive Officer Award of the School. Ira Harris, BBA geographic area, one national recognition in a National Association of '59, is a prominent invest­ by class date, and one number of areas. To sum College and University ment banker who has alphabetical. up: two senior faculty Business Officers. been a strong supporter members were elected Fel­ of the School. Under the lows of their professional terms of the challenge William Davidson, BBA associations — W. Allen grant, all new and all in­ '47, president and Spivey of the American creased alumni gifts to the chairman of Guardian Statistical Association and Business School, up to Industries Corp., creates Edwin L. Miller of the $100,000 annually, will be an endowed visiting Academy of Management; matched by the Founda­ professorship to bring Robert K. Mautz, pro­ tion on a two-to-one basis. business scholars to the fessor of accounting, was Millard Pryor (right) with two School for periods of a few given the Oustanding days to as long as a semes­ winners of the first Pryor Award. Educator Award of the They are Barry Levine (center) ter to work with faculty, American Accounting As­ and S. Ralph Gerbie. students, and doctoral sociation; the 1984 Heizer The Michigan Individual candidates. Award for Outstanding Entrepreneur Award, to Research in New Venture encourage entrepreneur- Development was won by ship and new business Robert K. Kazanjian, as­ formation, is established sistant professor of policy by Millard H. and Mary S. Pryor by a $50,000 grant through the Pryor Foun­ dation. The award offers a $2,500 annual cash prize for the best-prepared, most innovative business plan detailing the start-up strategy for a new enterprise.

Spring 1989 11 Three new joint degree Robert E. Cole joins our People going to work in programs are established, faculty with a joint ap­ the old Business School bringing to eight the pointment as professor of building pick their way number of joint degrees sociology and business ad­ through a maze of available. Graduates re­ ministration. He was the blocked passageways ceive the MBA and a director of the U-M's Cen­ (CONSTRUCTION — degree in any of these ter for Japanese Studies KEEP OUT) as major eight areas: hospital ad­ for six years, and has parts of the building are ministration; social work; written extensively on being renovated. The old Near Eastern and North comparative studies of library space is completely African Studies; law; mu­ American and Japanese remodeled. The library sic; Asian studies; public industry. reading room becomes policy studies; and archi­ the new student lounge, tecture. (Editor's note: the old student lounge since then joint degrees Education Building makes becomes offices for PhD have been added in it possible to consolidate students, the old comput­ forestry, construction executive education activ­ ing area on the third floor engineering and manage­ ities within the Business is changed into faculty ment, industrial and School complex, instead of offices, and substantial operations engineering, holding those classes off- upgrading and moderniz­ Russian and East Euro­ campus, as had been done ation of the tower begins. previously. pean studies, and naval z&3 architecture and marine The Student Pledge cam­ OCT CS engineering.) paign tops $100,000 -rut u?- pledged over five years, a record amount. This year 1985 also marks the end of the A newsletter begins to be first student pledge pe­ published for the evening riod which began in 1980, MBA students, nearly all since the pledges are for of whom hold full-time five years. managerial positions dur­ ing the day, then commute tuition and stipends to tal­ to classes in Ann Arbor or Thirty-two minority men ented Blacks, Hispanics, The new buildings are Dearborn. Such demand­ and women students and American Indians. dedicated on a beautiful ing schedules leave choose to enroll for their The U of M is one of nine sunny October afternoon evening students little MBAs at the University of institutions with member­ under the portico of the time to be aware of the Michigan Business School ship in the Consortium. new Kresge Business Ad­ wealth of resources avail­ under the auspices of the Also this year the Black ministration library with able to them at the School. Consortium for Graduate Business Students Asso­ Mr. and Mrs. Stanley S. Thus the newsletter. Study in Management. Kresge as honored guests. The consortium fellow­ ciation holds its ninth After the ceremonies, the ships provide two years' annual Alumni Day. crowd circulates in the The Executive Program, Kresge portico enjoying a one-month course for refreshments and Dixie­ senior executives, has land music. The new become so popular that it library building seats is decided to run an addi­ three times as many tional program to take students as could be care of the demand. accommodated in the old library, and the new com­ puting center for students contains more than 85 easy-access microcompu­ ter workstations. The new Computing/Executive

12 Dividend Lois and Bruce Zenkel A Career Resources Cen­ Two funds are started establish an endowed ter is organized as a joint to honor two beloved fund for faculty research endeavor of the Placement professors: Wilbur K. and development at the Office and the Library. Pierpont, professor of School, which helps pro­ Files are set up for the accounting, and Paul W. vide for one of the School's more than 400 companies McCracken, Edmund highest priority needs — that recruit at the School Ezra Day University the ability to obtain and or solicit resumes from Professor of Business retain talented new young students. Each company's Administration. The Paul faculty members. Bruce file includes the latest an­ W. McCracken Collegiate received a BBA from the nual report, recruiting Professorship in Business School in 1952. literature, and a file of Economics is established current news stories and with a $100,000 pledge Paul W. McCracken Standard & Poor's stock from the Dow Chemical oring Prof. McCracken on report. Packets are also Company as a way of hon- his retirement from their compiled on careers Board of Directors. The ranging from public Wilbur K. Pierpont En­ accounting to venture dowed Scholarship Fund capital, and files are estab­ is started with a gift of lished on all major cities, $100,000 from the including the local city Her rick Foundation. magazines. Students are Recipients of grants from quick to discover this new this fund will be known resource. During the first Sam Zell as the Pierpont Scholars. week, 50 items are re­ (Editor's note: by 1989, Sam Zell and Robert Lu- quested — that soon these funds have grown to rie, both highly successful grows to 550 requests Wilbur K. Pierpont more than $300,000 each.) real estate entrepreneurs, during one week of the decide to encourage en­ winter term. trepreneurial tendencies in Business School stu­ The Executive Residence dents by initiating a is completed and goes into $25,000 prize competition operation in the spring. in the teaching of entre­- Rising seven stories above preneurship. The winner the campus, the Residence A unique "preferred will come to the School for offers distinctive accom­ admission program" is in­ a year and teach a course modations for participants augurated. Qualified high in entrepreneurship. in the Executive Educa­ school seniors who antici­ (Editor's note: The first tion programs, and marks pate doing later work in winning course focused the final phase of the engineering, business ad­ on the psychology of en­ School's $15 million ministration, or pharmacy trepreneurship; the building campaign. The can receive what amounts second year the winning building contains 96 guest to simultaneous admission course looked at the struc­ rooms, a large, hand­ to U-M undergraduate ture of entrepreneurial somely furnished guest and professional schools. systems; and the next lounge, and a glass-walled This program is believed course, nicknamed dining room looking out to be the first of its kind in "Failure 101" by students, on a pleasant courtyard. the nation, and is de­ focused on the role of fail­ signed to free outstanding ure in the development of undergraduates to entrepreneurs.) broaden their course selections and avoid "over- professionalism."

Spring 1989 13 The Cognitive Science A new computer labora­ The School's first Real Es­ and Machine Intelligence tory opens at Village tate Forum is held in the Laboratory (CSMIL) is Plaza, the satellite location fall — a two day event founded with headquar­ for evening MBA classes. with lively speeches and ters at the Business Ten Burroughs B-25 mi­ discussions. (Editor's note: School. This new lab crocomputers are installed the Forum was so success­ gathers researchers from at the study center, all ful it was continued the Business Administration, equipped with word pro­ next year and is planned the College of Engineer­ cessing, spreadsheet, and for 1989 as well. The ing, and LSA to pursue graphics software. The Forum included a net­ research on machine microcomputers also can working session; a dinner vision, learning, the access the University's and keynote speech, a interaction between hu­ mainframe computer, and series of short talks by mans and computers, and communicate with the different real estate ex­ the design of computer Business School computer William A. Paton perts; and a series of small tools. The lab will promote facilities via modem. panel discussions on var­ interaction between William A. Paton, Edwin ious aspects of real estate.) disciplines. Francis Gay Distinguished Applications to the Ph.D. University Professor program are up a sub­ Emeritus of Accounting Two new endowed senior Richard P. Bagozzi stantial 42% since and Economics, is desig­ professorships are estab­ becomes the Dwight F. 1984-85, reflecting the nated Outstanding lished. Stephen M. Ross, Benton Professor of Mar­ increased visibility of the Educator of the Century BBA '62, president of the keting. Before joining our Business School as one of by The American Insti­ Related Companies, Inc. faculty, he taught at Stan­ the very best in the nation. tute of Certified Public pledges funds for the ford University, the Sloan Accountants. An endowed School's first endowed School of Management, scholarship fund has been professorship in real es­ and the University of established to honor him. tate, which will be named California at Berkeley. the Stephen M. Ross Pro­ fessorship in Real Estate. 1987 Professor Karl E. Weick, The other professorship is Three new interdisciplin­ viewed by his colleagues established by Everett E. ary research centers are as one of this country's Berg, MBA '48, Chairman established. They include: most influential theorists and CEO of EBCO Enter­ the J. Ira Harris Center in the organizational prises, and for the Study of Corporate studies field, joins our fac­ named the Finance, founded to ulty as the Rensis Likert Everett E. stimulate productive Collegiate Professor of Or­ Berg Profes­ interaction between ganizational Behavior and sorship in financial executives from Industrial Relations and Business industry and Wall Street Professor of Psychology. Admini­ Placement reports another and the faculty and stu­ stration. record-breaking year. dents of the School; the Three hundred and Office of Manufacturing Stephen M. Ross seventy-seven firms Research, designed to fos­ recruit at the Business ter the development and School, 52 of them for dissemination of applied A new publication, enti­ the first time. Ninety com­ multidisciplinary research tled "The Research Beat" panies recruit for summer on manufacturing man­ is launched to help keep internships. MBA salaries agement; and the Office alumni and friends of the are at a mean of $37,500; of Tax Policy Research School up-to-date on some BBA salaries at a mean of and Analysis, founded to of the ongoing research $22,800. encourage and facilitate activities of the School. joint research on the tax Each issue carries summa­ system by economists, ac­ ries of some of the diverse countants, and scholars of research work being done other disciplines. by the Michigan Business School faculty.

14 Dividend The Milton and Josephine 1988 Kendrick award for theory development in marketing The Kresge Business Ad­ is established to recognize ministration Library is one the importance of theo­ of 20 sites selected nation­ retical scholarly work ally to receive a new among doctoral students English language in marketing. database — Japan News and Retrieval — which of­ Felix G. Roliatyn, Joseph A. Grundfest,J. Ira Harris, Joseph H. Flom fers online access to vital Alumni of the School economic information on establish a special invest­ The opening event of the tions: The Past, The ment fund, managed by J. Ira Harris Center for Present, The Future." Japan and Japanese Fi­ nancial Markets. our alumni. The fund the Study of Corporate Fi­ A major purpose of the seeks long-term growth of nance draws an enormous Center is to facilitate the capital through a diver­ audience to hear ten of interaction of students sified portfolio. (The the most well-known and and faculty with the Stanford Business School powerful names in the "real world" of corporate Trust, which was used as a high-stakes world of cor­ finance. This was an model, grew from $70,000 porate finance discuss auspicious and impressive to $9 million in 20 years). "Mergers and Acquisi­ beginning.

The School has the largest The Business School's Dean Whitaker is elected applicant pool in its his­ Annual Fund exceeds $ 1 vice-president/president­ tory. Applications are up million for the first time in elect of the American 75% since 1984. Eighty- the School's history. This is Assembly of Collegiate eight percent of the ma­ an important milestone Schools of Business triculants have work for the School, which is in (AACSB). experience, up from 77% tough head-to-head com­ the previous year. petition with the very best Jack D. Sparks (and most well endowed) The Jack D. Sparks- schools in the nation. For Whirlpool Corporation example, annual fund Research Professorship in contributions this year Business Administration to Harvard B School are is founded with a gift $13.4 million; to Stanford, pledged by the Whirlpool $2.7 million; and to Corporation. The pro­ Wharton, $2.02 million. fessorship honors the D. Maynard Phelps and Dean Whitaker Our $1.32 million is cause former chairman, president and CEO A scholarship fund is cre­ for celebration, but we also have to work smarter at Whirlpool. Minority enrollment at the ated to honor C. James Business School hits an all Pilcher, professor of fi­ to stay even. Annual Fund contributions have more time high — 24% of the nance, who retired after Internationalization than tripled since 1981, il­ entering MBA class. In being a member of our through the development lustrating the generosity the fall of 1981, 35 minor­ faculty since 1948. An­ of exchange programs and support of our ity students matriculated; other well-loved professor with management alumni and friends. in the fall of 1988, that fig­ is honored when the programs in Europe ure had risen to 102. This executive lounge in the continues to increase at reflects the sustained ef­ Assembly Hall building the School. Currently we forts on the part of our is renamed the Phelps exchange students with admissions office to reach Lounge in honor of Pro­ six European business out and recruit qualified fessor D. Maynard Phelps, schools and are exploring minority students. who joined our faculty af­ the possibility of ex­ ter graduation in 1926 changes with schools in and is now professor Asia and Latin America. emeritus of marketing.

Spring 1989 15 of publicly held corpora­ Despite the Wall Street tions, and the effects of Crash in Fall, '87, starting changes in corporate own­ salaries for our MBAs are ership structures. Also up 6% to $45,200 and by joining our faculty is 9% for BBAs who report Dennis R. Capozza, the an average starting salary Stephen M. Ross Pro­ of $26,800. More than fessor of Real Estate and 400 companies recruit at professor of finance, who the School. is considered a top scholar in the integration of the modern theory of finance Over 80 refereed articles and urban land use are published by the economics. Michigan Business School faculty, and 67 additional A specialist's book is pro­ articles were accepted but duced which lists Business not yet published in refer­ School faculty and their eed journals, reflecting areas of expertise. It is dis­ the research productivity tributed to various media of our faculty. sources to increase media awareness of and expo­ sure to the Michigan Executive Education dis­ Business School. places Harvard as the market share leader for the number of executives Membership in the attending University- School's Visiting Commit­ based general and func­ tee now stands at 35, all of tional management whom are top corporate programs, according to executives. The Commit­ The School's Library and survey figures published tee has grown from a Computing Services are in Bricker's International membership of 17 ten merged under Dr. Elaine Directory of University years ago. Didier, representing acknowledgement of the Executive Programs, converging nature of the 1988. Several outstanding senior two information-based ac­ faculty members join us tivities. As technology Paul McCracken, chairman of the this year. They include offers more sophisticated 1979 Search Committee for the Wayne DeSarbo, Sebas­ ways to store, manage, Deanship, and Dean Whitaker get tian S. Kresge Professor and retrieve information, ready to cut the "Ten Great Yearjl cake at a celebration of the of Marketing, who is an the traditional boundaries School's decade of innovative scholar and re­ between computing and accomplishment. searcher in the field of library services are quantitative marketing; softening. Linda E. DeAngelo, Arthur Young Professor of Accounting and her The number of alumni husband, Harry C. programs increases from DeAngelo, professor of fi­ 25 in 1984 to 35 in 1988, nance and director of the and the number of alumni J. Ira Harris Center for participating in these pro­ the Study of Corporate grams increases from 1401 Finance. The DeAngelos in 1984 to 1616 in 1988. have done important joint research on issues involv­ ing the role of proxy contests in the governance

16 Dividend A new program for journalists specializing in business reporting is inaugurated by the Business School and the Michigan Journalism Fellows program.

A ir^^lT* TOT* "MAINTENANCE OF THE MIND"

By Kathy Hulik

oan Richardson, the first Knight Fellow in Business The Business School regards the fellowship as a means of and Economics at the U-M, is a woman who likes to helping bolster a field of coverage that has long remained a be challenged. As deputy business editor at the Detroit journalistic backwater, said Dean Gilbert R. Whitaker, Jr. Free Press, she gets her wish daily, supervising 15 re­ "I am very excited about this new joint endeavor," said porters and two assistant editors, and making sure Whitaker. "Far too often, covering business is simply an­ Jthe business pages in the nation's 10th largest newspaper other assignment for journalists. A program such as this get printed. will provide them with real business background, enabling Since last September, she has had a different type of them to write about business knowledgeably. The world of challenge. As one of 15 Michigan Journalism Fellows this business has long needed journalists who can report its year, she faces a regimen of what she terms "maintenance complex activities with sensitivity and intelligence." of the mind" — reading, studying, thinking, and learning. Richardson was selected as the first business Fellow after The MJF program brings experienced journalists to the being interviewed by a committee of Marshall Loeb, man­ U-M campus to study just about anything they want, attend aging editor of Fortune; Thomas Kinnear, associate dean of twice-weekly seminars, and absorb all they can from each the Business School; Charles Eisendrath, MJF director; and other. Traditionally, MJF had received applications on an James Bock, a 1987-88 Fellow and Mexico City Bureau undifferentiated basis for general studies. But now they Chief of the Baltimore Sun. She also submitted a proposal have opened several positions for specialized journalists, to study the role of American multinationals in the emerg­ including the one in business, and another in medicine. ing global economy, and the challenges presented to Ameri­ To support the new fellowships, the Michigan Journalism can business due to globalization. Fellows Program has received a five-year Knight grant of "There is a tendency among regional newspapers to $500,000. The Business School and the Medical School cover business, and even important multinational com­ each will help raise an equal amount to endow the two panies, as if they are Michigan companies selling only to fellowships. Michigan people," she said. "During this year, I have

Spring 1989 17 learned irrevocably that we must recognize the globalness pretty smart about knowing what I don't know. in our own backyard even as the companies must." "Now I can see the way the pieces interrelate that I didn't "If we can change the way we cover American business, see earlier. Ideas that seemed foreign, I am now comfort­ we can speed along change in the American public's atti­ able with." For example, Richardson said when she arrived tude and aid in its understanding that our companies are in September, she knew nothing about the European Com­ part of the global economy." munity becoming one market in 1992 or its umbrella agree­ Business Fellows are expected to concentrate their work ments, the General Agreement on Trade and Tariffs. in the Business School, and are encouraged to involved "Now, I have a much better understanding of the inter­ themselves in research projects. Richardson, for example, national economic issues involved, and can talk comfortably has joined two other researchers at the Office for the Study on both topics," she said. of Automotive Transportation in the Transportation Re­ Richardson wanted to be a foreign correspondent when search Institute to complete a descriptive study of women she studied journalism and history at Indiana University, in the automotive industry. She said that has been a "won­ and she took courses in Chinese history to be ready for an derful experience," beginning with a handful of names and assignment in Beijing. An internship in Washington led to ending with 600 identified. a deep love of politics, and after working at the Peoria Jour­ During her stay here as a Fellow, Richardson experienced nal Star, she covered the Indiana General Assembly for the a change not only in her approach toward business report­ Indianapolis Star. ing, but also within herself "Newspaper people are always She reached the level of state editor at the Star, and joined focused on the daily deadline," she said. "They shut out the Free Press In 1981. Along the way, she met her husband, anything not relevant to their immediate task." On the job, Bob Rossbach, who is a television producer for the Detroit she would read the first edition of the Free Press, a morning Public Broadcasting System TV station. They have three paper, when it came off the press at 10 p.m. and dictate any children — a four-year-old daughter and two-year-old changes. twins. Then she would wake up at 5:30 a.m. to read subsequent Detroit, she said, is an excellent news town for business editions, and also check The New York Times, The Wall Street reporting. "It has the auto industry, a Japanese presence, Journal, and U.S.A. Today, but always looking for Detroit food and chemical industries, lots of active retailing, For­ connections. tune 500 companies, merger and acquisition activity, and family squabbles. There is a little bit of everything." But being a student again has its fascinations. "I was in school in the early 70s," she said. "Now there are a lot of "The world of business has long needed men wearing earrings, and a lot of short hair. I'm also very journalists who can report its complex struck by the affluence on the Ann Arbor campus." Richardson said she is quite impressed with the students activities with sensitivity and intelligence'' she has met, and has developed some good friendships. Yet, "I don't see the same sense of political activism that existed when I was in school," she said. "Intellectually, I am more ambitious than that, but I was "I am disturbed by the insularity of the Business School so focused on my job, I neglected other areas," she said. students. They are very aware of the world in a business "Now, I can indulge my mind. I spend about 15 minutes sense and the implications of changes vis-a-vis business with the Free Press, and do the bulk of my newspaper read­ considerations. ing in the The New York Times and The Wall Street Journal. "But they are not very worldly in understanding wider "I've learned from that. This is a year about opening ramifications and how everything fits together. Too many yourself up. It will be difficult to go back to the same job, are very narrow in what they are doing. I do think the when I'm not the same person." Business School could play a role in changing them." While she admits there is little chance she will give up the Of course, Richardson is seeing the students from a dif­ newspaper world to become a Wall Street stockbroker after ferent perspective — that of a professional who has worked her year at the Business School, Richardson said she knows for 15 years. She also sees herself and her classes differently. much more about where to go to get information for busi­ "The first time I was a university student, I was verv ness news stories. "I know the wizards are here," she said. respectful of authority," she said. "Now I consider myself an Michigan Journalism Fellows may take classes in any de­ expert in a professional sense. I have developed good partment of the University. They are not required to write friendships with some professors, because I feel I have papers, take exams, or do the assigned reading. Richardson something to contribute, and I enjoy them because they are said she reads 80 percent of what is assigned, but does not wonderful, fascinating people. participate in class discussions, leaving that to students who "But I look at what I am getting for my time. Those pay tuition. classes and professors I choose clearly constitute a value "I have no real gauge of how I'm doing," she said. "I statement. We respect each other." know what I know that I didn't know when I came. I'm Richardson finds much to praise at the Michigan Busi-

18 Dividend ness School. "The resources here are excellent — the library and the physical plant are a tribute to Gil Whitaker and Anneke Overseth," she said. "The faculty has been very receptive to meeting and talk­ ing with me. I haven't run into any mediocre people, which is high praise in itself. I am impressed with their energy and vitality. They have been generous with their time and with loaning me books and papers.

"If we can change the way we cover American business, we can speed along changes in the American public's attitude and aid in its understanding that our companies are part of the global economy." Joan Richardson

"This is a school to be proud of. The state and business community are fortunate to have the brain power and ener­ getic students that are here. I would be proud to have an MBA from Michigan." And she is just a little sad at seeing the year end. "I will miss this," she said. "I also have a new appreciation of being on the outside, trying to get a story into a newspaper and the obstacles involved. Even with the people at the Free Press, I have had to really persuade them to become inter­ ested in a particular story I saw going on here. "When I get back to the real world, I am sure there will be a closer association between the Michigan Business School and the Detroit Free Press." As Dividend goes to press, the name of the next year's Knight Fellow in Business and Economics has been an­ nounced. She is Sharon Walsh, financial reporter for the Washington Post.

Spring 1989 19 Eating Well in the Executive Residence

Anne Flora and her * staff go to great lengths to make sure the food in the Executive Residence is a feast for the eyes as well as the palate.

20 Dividend nne Flora sits in her small, glassed-in office "Anne and her staff cook and serve food with the same off the kitchen of the Executive Residence. care whether they are doing it for 20 or for 400," says a fan It's obvious as she speaks that she has a zest who works with her on special events. "The food she does for just about everything — whether running for the School's extra-special dinners served in conjunction a bed and breakfast house in Wales; being a with important events are as distinctive as you would get at Aprintmaker; or refurbishing a house she has just bought. an excellent New York restaurant. You never get the feeling Now she is talking enthusiastically about food. of a mass produced meal." "I've always had a clear idea of the kind of service I want Anne speaks animatedly about the opening of the Execu­ to give people — how food ought to look and taste. I want tive Residence Dining Room. "It was scary," she says. "We the atmosphere to be beautiful but casual," says Anne, who got the keys to the building in the middle of March, and we began her professional life as an artist and is now director had about three weeks until our first meal, which was April of food services for the Executive Residence at the Business 8, 1986. I'll never forget it. During those three weeks we School. "People ought to be interested and surprised at had to move our equipment in, test it, and get the kitchen what they're seeing." set up. Also our recipes were all untested." On this particular day, Anne and her staff are preparing The untested recipes were particularly unsettling. Anne an extra special buffet supper. One staff member is work­ explains that food reacts differently as recipes are ex­ ing on a tempting cream-puff dessert; several others are panded. You can't take a recipe written for 30 people, multi­ putting finishing touches on a bounteous buffet table of ply every ingredient by six, and serve it to 180 people. salads, cheeses, fruits, and flowers. "We only had about two weeks before heading into Why such a special meal? It's the middle of winter, the crowds where we needed to cook for 200 at a time," Anne staff needs an interesting challenge, it's a good way to keep explains. "It was frightening because we weren't sure how everybody up to snuff. And the buffet is gorgeous. the recipes would be. It's a matter of constantly testing and Anne's artistic side came into play from the beginning of then noting everything — documenting thoroughly as you her work at the Residence. When there wasn't enough in the go. You have a basic idea of the quantities necessary but you budget to buy silver serving trays, she found them in need the fine tuning. A recipe is only as good as the cook." second-hand stores. "I don't want us to use plastic platters," Since time was of the essence, Anne's senior assistant, she says decisively. "We tried to choose equipment for the Judy Mannetter, proposed that she follow Anne around the Residence with an eye to what's going to be durable and kitchen and make a note of exactly how much of every look terrific as well. We do a lot of things with baskets ingredient was going into the dishes being tested. You can't because they are interesting looking, and we use flowers put "a little" basil in, or "a pinch" of ginger. You have to say and natural garnishes to make things look beautiful." exactly what "a little" is — half a teaspoon? a quarter of a She does make things look beautiful, from the Easter cup? baskets on the tables during Easter week, to the antique "Maybe last week you served a soup for 50," says Anne, Christmas decorations she provides for the huge tree in the "but this week you need to do the same soup for 200 and Executive Residence lobby. And the variety of the food she that's very different. Maybe the expanded recipe is tasting provides is awesome. thin, so you have to remeasure everything. Then there's the One day Anne and her staff may cater a lunch for one of flavoring. You don't want it too salty or too thick. By trial the School's visiting boards; another day it might be a tail­ and error you have to adjust for yield, flavoring and consis­ gate picnic in the Kresge portico for 400 alumni returning tency, and retest and remeasure everything. I was in with for reunion weekend. Then there are the spectacular din­ the cooks first thing in the morning. We only had two su­ ners for special business school events, such as the opening pervisors — Judy and myself. Judy was wonderful in pull­ of a research center or a dinner in honor of a distinguished ing together methods and procedures and being an business leader. And let's not forget the Christmas buffet; invaluable right hand person in helping to get things off the continental breakfast before a morning symposium; the the ground." two elegant box lunches served in an office to an associate Anne is constantly looking at magazines and cookbooks dean and corporate guest when the Executive Dining Room for new ideas. "Sometimes we will take special chances," she was full to overflowing. says. "Once we decided to serve stuffed quail. Not everyone All of these meals are, of course, on top of the regular, is necessarily going to appreciate that, and you don't always day-to-day service of lunch and dinner in the Executive know what your crowd is going to be like. So you try to have Dining Room; the white cheddar cheese popcorn, strawber­ a mix. At dinner we usually have four choices, including ries and cream, and other goodies put out in the afternoon one fish or seafood dish, one beef or pork, and at least one for snacks; the fruit and pastries during morning coffee low cholesterol item." hour. One question Anne is struggling with is whether the food service should expand. They are now busy almost every month of the year and are also bursting at the seams. So how about catering off-site? It's a difficult decision, says Anne puts finishing touches on a bounteous buffet table. Anne, because anything done off-site takes triple the effort.

Spring 1989 21 The hardest thing about Anne's job is managing consis­ contact and the variety. I tended bar. I did some housekeep­ tent quality. This is a fight from the word go, because there ing. I could use my people skills. I could use my artistic, are so many variables — from the quality of the raw mate­ visual skills. I couldn't really see the benefits of all my expe­ rials to the experience and expertise of the staff. You can rience until that hotel job. I knew I had to get into that kind have a shortage of people, or a piece of equipment can of work on a permanent basis." malfunction. The next step was to buy her own bed and breakfast Cross training is one way to help control the variables, house. "I didn't really have the least idea how I was going to and everyone on Anne's staff is trained to do several jobs. do it," she smiles, thinking of it now. "But I went ahead "The most wonderful part of my job is the people," she says. anyway. I sold my house in New York, and bought a three- "I am constantly amazed at how good my staff is. They are bedroom house in Wales. Then I came back to Ann Arbor the people who make the place what it is." to stay with my parents that winter." After receiving her degree in fine arts from the Univer­ Over the winter Anne shopped for furnishings, and sity of Iowa, Anne went to New York City to seek her for­ when the season opened the next summer, she was ready. tune as a printmaker, and supported herself along the way "It was a small venture," she says. "I wanted to start small by doing social work. While running groups in crafts, litera­ and see what would happen. Would I like it? Would it ture, and creative writing at a day center for senior citizens, work?" she got drafted into running the kitchen as well. That summer the weather was great, the economy was "I sort of fell into cooking," says Anne. "I had a feel for it, good, and Anne's house was full the entire season. She and I learned as I went along." She had plenty of oppor­ loved it. tunity for early learning, since she was one of six children. However, a summer business only provides a living for a Later, she helped herself through college by working as a few months. What about the rest of the year? Anne closed housekeeper for a family of four children, so when the up the house, came back to Ann Arbor, and applied to the senior center needed someone to run the kitchen, Anne was University for an eight-month job. She soon landed one as willing to do it. food service supervisor at a dormitory during the fall and "I just did it because there was no one else to do it," she winter semesters. says, "but it was hectic. I was continuing to run the groups, For two years Anne went back and forth between Wales but now I was also running the kitchen, and it was on an in the summer and Ann Arbor in the winter. "I didn't need entirely different scale than I was used to. We did break­ vacations," she says, "because I loved what I was doing so fasts and lunches for 200 people a day." much." Anne did the monthly menus and the food budget. She The crunch came when she was asked to apply for the job had to demonstrate the methods of cooking and test the as food manager at the still-being-built Executive Resi­ recipes. "Everything was hands on," she remembers. "I dence. "I knew if I took that job it was the end of my would try three or four food vendors and see which one I summers in Wales," she says. "I sold the house in Wales, and liked the best. I learned about meat and produce that way. I still feel a sense of loss about that, but the opportunity It was all trial and error." here was so exciting I couldn't turn it down." Meanwhile, Anne had achieved some success as a print- Given the excellent quality of the food in the executive maker. Her prints had been shown in Australia, Yugoslavia, dining room, and Anne's obvious zest for the job, you might Chile, and London, but she began to feel that printmaking assume the food she cooks at home must also be fabulous. was not what she wanted to do with the rest of her life. She laughs heartily at that. "Usually I like Campbell's soup After a trip to a vocational counselor and a careful assess­ and scrambled eggs," she says. "Most people who do food all ment of everything she had done, she decided to go into the time don't even want to think about it when they're at hotel and restaurant work, and promptly enrolled in night home." school. m Now she was working full time at the senior center, going to school four nights a week, working on the renovation of a brownstone house she bought in Brooklyn, and serving on various neighborhood committees. One month she got so busy she didn't pay any bills. "It slipped my mind," she laughs as she remembers. "Then I got a cutoff notice. That reminded me." While working toward her associate's degree, Anne spent her summer vacation doing an internship at a charming 15- room country inn in North Wales. The internship was so successful that after graduation, Anne quit her job at the senior center and went back to that inn to be the chef. "That hotel job was the culmination of all the things I have a natural feeling for," says Anne. "I loved the guest

22 Dividend AMONG OURSELVES

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

Donald Petersen of Ford Receives Business Leadership Award and Announces a $2.5 Million Grant for a Combined Business/ Engineering/Manufacturing Program Teamwork for quality was at the top of the agenda January 24 when Donald E. Petersen, chairman of the board and CEO of Ford Motor Com­ pany, received the 30th annual Busi­ ness Leadership Award. The award was presented to him by James De- Pina and Laura McGregor, president and vice president respectively of the Business School's Student Council. During Petersen's speech, which was entitled "The Wellspring of Qual­ Hands-on for teamwork is symbolized in this picture taken when Donald E. Petersen, chair­ ity," he announced a $2.5 million man of the board and CEO of Ford Motor Company, announced a $2.5 million grant for a grant to support a combined engi­ combined business/engineering/manufacturing program which represents a unique team neering, manufacturing, and business effort between a university and a major corporation. Petersen announced the grant at ceremo­ program at the University, involving nies during which he received the 30th annual Business Leadership Award presented to him both faculty and student support. It by the Business School. Pictured left to right are Daniel E. Atkins, interim dean of the College will include students doing hands-on of Engineering; U-M President James J. Duderstadt; Mr. Petersen, who is wearing the Busi­ work in Ford plants as part of their ness Leadership medallion; and Business School Dean Gilbert R. Whitaker, Jr. fellowships, and represents a unique team effort between a university and a "Ford Motor Company has again ing School. "We believe that together major corporation. placed itself on the leading edge of we can make significant progress in Part of the grant will fund the education support with this gift," said preparing future leaders for manu­ William Clay Ford Chair of Product U-M President James J. Duderstadt. facturing careers," he said. Manufacturing at the College of Engi­ "It is a recognition of and an encour­ In his talk accepting the Business neering. Petersen said as the program agement to the University of Michi­ Leadership Award Petersen said that develops, Ford expects to create a se­ gan's effort to blend its engineering an emphasis on quality and teamwork ries of scholarships, fellowships, re­ and business programs in a wray that transformed Ford from the troubled search programs, and grants also better serves the needs of corporate corporation it was at the start of this named for William Clay Ford, the vice America." decade to the successful business it is chairman of Ford's board of directors Commenting on the grant, Dean today. and a grandson of Henry Ford. The Gilbert R. Whitaker, Jr. said that the "Quality should be raised to the Ford endowment will be given in in­ endowment was an additional catalyst level of an American ethic if the crements of $500,000 over the next to the growing relationship between United States is to remain a world five years. the Business School and the Engineer­ leader," he said, adding, "People will

Spring 1989 23 strive for excellence if they are al­ Poison pill resolutions, wherein obsta­ communities that ultimately leads to lowed to." cles are put in place to make a hostile greater overall knowledge about the Petersen joined Ford in 1949 after takeover unattractive. The defense, field of corporate finance. receiving a degree in mechanical en­ developed by Lipton, is widely used Harris Center activities include an gineering from the University of and has been "the" takeover defense annual forum in which leading ex­ Washington and an MBA from Stan­ of the late 1980s. It was discussed by perts discuss an important and timely ford. He held a succession of positions John C. Wilcox, managing director, issue in corporate finance, a lecture of increasing responsibility in market­ Georgeson & Company, Inc., and a series that brings to campus members ing, product planning, product devel­ well-known supporter of the poison of the financial community to share opment, and design before becoming pill. Also speaking on the poison pill their views and working knowledge an officer of the Company in 1969 — was Grundfest, who has played a key with Michigan students and faculty, as vice president of Car Planning and role in shaping SEC policies on corpo­ programs of faculty research on sig­ Research in Ford's Product Develop­ rate goverance and related issues of nificant corporate finance issues, as ment Group. He subsequently headed shareholder rights. well as student fellowships and assis- up the Truck and Recreation Products The "Just Say No" defense, which tantships to support graduate-level Operations, its Diversified Products boards of directors invoke to avoid study of corporate finance. Operations, and its International Au­ negotiating a sale of target firms. Also tomotive Operations. He was elected a initiated by Lipton, this is a recent in­ company director in 1977 and in 1980 Speakers From Lionel Trains novation and has not been tested fully Throw Light on Issues of was named president and chief oper­ in the courts. Lipton, senior partner, Manufacturing in Transition ating officer. He assumed the office of Wachtell, Lipton Rosen & Katz was chairman of the board in 1985. joined by Lowell E. Sachnoff, senior "We're putting the romance back in A man who loves product, Petersen partner, Sachnoff Weaver Rubenstein, model railroading," said Richard P. believes that teamwork and an indi­ Ltd., and a well-known advocate of Kughn, owner and chairman of the vidual commitment to quality are fun­ shareholder rights. board of Lionel Trains, Inc. when he damental to business success. His own The role of special committees, which spoke at the lecture series on Manu­ commitment to these ideals has en­ are formed to evaluate takeover pro­ facturing in Transition sponsored by abled him to contribute significantly posals that inherently involve conflicts the Office and Manufacturing Man­ to one of the greatest turnarounds in of interest between company share­ agement Research at the Business U.S. business history and Ford's re- holders and management. This situa­ School. emergence as the world's most excit­ tion, which occurred when the CEO In 1953 Lionel Trains was the larg­ ing, competitive, and profitable of RJR Nabisco offered to buy the est toy manufacturer in the world with automaker. firm from shareholders, has become $33 million in sales volume (it does increasingly important. Arthur $150 million in sales today). But by Harris Center Forum Considers Fleischer, Jr., one of the nation's top 1968 the company was not prosper­ takeover attorneys, will be joined by Four Controversial Issues in ing, and it was bought by General Robert A. G. Monks, a leading advo­ Mills and located in Mount Clemens, the Current Takeover cate of institutional investor interests. Michigan. Environment Fleischer is a partner in Fried, Frank, By 1983 the company moved to Takeover defense innovator Martin Harris, Shriver & Jacobson, and is Mexico to reduce labor costs and be Lipton and Securities and Exchange co-author of Board Games. Monks is more competitive. One year later it Commissioner Joseph A. Grundfest president of Institutional Shareholder was obvious that the decision to move joined other experts on corporate Services, Inc. was not a good one, both because of takeovers and defense strategies at a Proxy contests and tender bids, which quality issues, and because of the ne­ Business School forum entitled "Cor­ represent different methods of trans­ cessity to move parts back and forth porate Governance: The Board of Di­ ferring company control. Augustus K. across the border frequently. The rectors' Role in Takeover Bids and Oliver, who with his firm, Coniston company began to relocate to Mount Defenses." The forum was held April Partners, initiated takeover attempts Clemens, a move that was completed 7 under the sponsorship of the J. Ira against Gillette and Allegis Corpora­ three years later, when the company Harris Center for the Study of Corpo­ tion, spoke on this issue. Joining him was bought by Kughn. rate Finance. was David Boies, who was legal coun­ Now Lionel Trains is prospering Lipton opened the forum at 4:30 sel to Texaco during its proxy chal­ by expanding both into the future p.m., April 6, with a talk entitled "Cor­ lenge by Carl Icahn. Boies is a partner and into the past. They are re- porate Governance: Major Issues for with Cravath Swaine & Moore. manufacturing the old-time trains on the 1990s." The goal of the Harris Center is to the one hand, which involves using On Friday, April 7, from 9:30 a.m. stimulate productive interaction be­ some of the same tooling machines to noon in Hale auditorium, leading tween financial experts from industry that wrere used 40 years ago. At the corporate governance experts talked and Wall Street, and the faculty and same time, they are trying out various about four significant and controver­ students of the Michigan Business high tech innovations. One of the sial issues facing corporate boards of School. Such interaction ideally en­ most exciting of these is what they call directors in the current takeover envi­ tails a substantial exchange of ideas "Railscope" — a tiny and functional ronment. The four issues are: between the academic and financial TV camera in the locomotive of the

24 Dividend train. When you hook this TV camera ment, and companies that concentrate up to your TV set, you can see, on everything in their own home market your TV, what the landscape looks like and export from there to the rest of from the locomotive as it rolls through the world. He emphasized the impor­ the model train countryside — just as tance of reciprocity and a "level play­ if you were indeed in the tiny train as ing field" between international its engineer. companies, rather than a "Fortress Model trains are complicated, ex­ Europe" or "Fortress U.S.A.," or plained Arthur Peisner, president and "Fortress Japan" mentality. CEO of Lionel, who also spoke. One The Mclnally lectures began in locomotive has 315 parts, and there 1966 to honor the memory of U-M Re­ are some 6,000 parts involved in the gent William K. Mclnally. They are train and the track. All of this involves supported by an endowment fund es­ complex logistical and inventory con­ tablished by his friends to perpetuate trol. Lionel Trains is constantly im­ his name. proving its product line and is now moving into the large scale gauge market. Public Forum Held on Europe The Manufacturing in Transition 1992: Impact on Corporate Lecture Series aims to capture the changes in manufacturing brought on America by competitive challenges, new tech­ DOLLARS FOR SCHOLARS When all trade barriers come down nology, new philosophies and strate­ A new scholarship in fionor of Douglas among the 12 members of the Euro­ gies for success, and an increased Hayes, professor emeritus of finance, pean Community in 1992, creating a dependence on fewer, more highly (pictured above in the classroom), has been single market of 320 million people, skilled people in the workforce. established by Security Bancorp with a gift how will it affect corporate America? The Lecture Series presents of $7 5,000 on the occasion of Professor Three senior faculty members at Hayes' retirement from their board of speakers who have had first-hand ex­ the Business School discussed that directors. The scholarship will go to a second perience with a significant transition year MBA student interested in pursuing question and its implications in a pub­ process and who are knowledgeable banking as a career. Individuals wanting lic forum held in Hale auditorium experts and observers of this chang­ to contribute to this scholarship should get Feb. 7. ing mosaic. in touch with Frank Wilhelme, director of W Allen Spivey, Clare E. Griffin The Office of Manufacturing Man­ development at the Business School. Professor of Business Administration agement Research, directed by John and professor of statistics presented E. Ettlie, was established to promote an overview of the upcoming changes. and develop research programs on and Italy also have decorated Jeelof He was followed by C. K. Prahalad, applied issues of manufacturing man­ with their highest civilian honors. professor of corporate strategy and agement. The Management in Transi­ In his talk, Jeelof discussed the international business, who spoke on tion Series is part of that effort. complexity of the task of creating a "Exploiting 1992: Implications for united, barrier-free Europe. He also Corporate Strategy." Gunter Dufey, warned against nationalistic reactions professor of international business and finance, discussed "Europe as a Mclnally Lecture Considers to European integration. Common Financial Market." the Question of Europe 1992: Jeelof said there is a misconception about which countries are investing Fraternity or Fortress? Professor Spivey noted that the uni­ most heavily in the United States. fication will create a European free Gerrit Jeelof, chairman of North From 1982 to 1987, Britain was the market with a GNP of $5 trillion American Philips Corp. spoke on the top spender, investing $75 billion in (roughly equal to that of the U.S.) and upcoming European integration, the this country. The Netherlands, home a population of approximately 300 creation of one large internal market, country to Philips and several other million. The flow of people, commodi­ and its implications for worldwide multi-national countries, was second ties, and services across borders will trade at the 22nd annual William K. with $47 billion, followed bv Japan be greatly improved, and taxes, im­ Mclnally Memorial lecture, held ($33.4 billion), Canada ($21.7 billion), port duties, and export procedures March 28 in Hale auditorium. West Germany ($19.6 billion), and will be eased. Professor Spivey said it As chairman of the North Ameri­ Latin American countries ($15.3 currently takes over two pounds of can Philips Corp., Jeelof heads a $6 billion). bureaucratic paper to move a truck- billion operation. He has held posi­ Jeelof also discussed the behavior of load of goods across Europe. After tions with Philips in Spain, Venezuela, global international companies, draw­ 1992, it will take only a one page Colombia, El Salvador, the Nether­ ing a distinction between companies document. lands, and the United Kingdom. For that become an integrated part of the C. K. Prahalad talked about the his contributions to industry and com­ environment where they want to be strategic opportunities that the 1992 merce, he was made a commander of active and that commit resources to transformation will create for multi­ the British Empire. The Netherlands that environment and its develop­ national corporations. He said that

Spring 1989 25 companies like Ford, with manufac­ senior level management, and what turing and distribution centers all Black Business Students areas of development can support over Europe, are more pan-European Association Holds 2nd Annual achievement for those aspiring to than most continental companies. For Business Colloquium senior management jobs. Lewis is na­ example, he pointed out that Fiat, About 50 Black business students tional vice president of the Black which controls 15% of the European and alumni gathered in Hale audi­ MBA association, and was chosen auto market, manufactures over 60% torium March 31 to hear a discussion MBA of the year by that organization of its product in Italy. of challenges facing managers in the in 1985. He is a mechanical engineer­ Prahalad said that 85% of Euro­ 1990s at the 2nd annual Business Col­ ing graduate of Northwestern Univer­ pean GNP is produced in an eco­ loquium sponsored by the Black Busi­ sity and received his MBA from nomic corridor of high labor and ness Students Association at the Marquette University. social costs running from Manchester Business School. Charlene Watler, now manager of to Milan through industrialized West­ Two speakers discussed challenges training and development for the em­ ern Europe. He sees industry shifting for managers, and Black managers in ployee relations department of Dow to southern Europe (Spain and Portu­ particular, from the middle manager Jones & Company in New York, spoke gal) where the cost of doing business is and senior manager level. Their talks on the changing role of the middle 40 to 50% less, and predicts that Japa­ were followed by a question and an­ manager. She said the middle man­ nese firms will start to gain competi­ swer period. ager of the future is going to be more tive advantage by establishing Speaking on senior management involved with the tasks themselves manufacturing there, while U.S. cor­ challenges was Stephen C. Lewis, now rather than just managing others who porations remain tied to the expen­ Advanced Luxury Car Planning Man­ do the task. She added that the mid sive economic corridor. ager at Ford Motor Company. In the manager of the future will be manag­ Professor Dufey discussed the con­ course of his career with Ford, Lewis ing highly skilled, technically compe­ cept of Europe as a common financial developed the first Ford North Ameri­ tent people, and will be very bottom- market. He said European financial can joint venture program with line oriented. Watler began her career services and markets will experience Mazda, during which time he lived in in 1973 as a sales representative for "only cosmetic changes" as a result of Japan for a year. He then went to IBM. Two years later she joined All­ 1992. (Actually, the date scheduled for Venezuela as Ford Venezuela Product/ state Insurance, and held positions as liberalization of European capital Business Strategy Planning Manager, senior personnel assistant and eastern markets is 1990.) where he developed all new car and personnel audit representative, before Several factors block major change truck programs for the Venezuelan being promoted to division personnel in the financial area, explained Dufey. marketplace. He discussed the role of manager - New England Region. She First, Europe does not have an inte­ joined Dow Jones in 1982 as a regional grated financial market. For instance, personnel manager and was named in banking, each country regulates its manager of training and development own banks, and foreign banks count DOLLARS FOR SCHOLARS in 1988. She is a graduate of Newton for only three percent of the industry. (Mass.) College of Sacred Heart. In addition, European banks have an Members of the Black Business Stu­ unwritten agreement not to penetrate dents Association who organized the each others' markets and this makes it Colloquium were MBA students hard, for example, for Italian banks to Tamla Roberts, Belinda Blair, Ron do business in Holland. In fact, the Scott, and Kelly Cooper. only true pan-European financial ser­ vices are U.S. banks, such as Citicorp, Chase, and Manhattan, and even Nobel Laureate Herbert Simon these are only niche players. Discusses "Do We Think in Words The panel concluded that change or Pictures?" at CSMIL Spring will not be completed in 1992 but will Colloquia be an ongoing process for years to come. They also discussed the possi­ People were sitting on the floor and bility that a united Europe will create standing at the back of a packed Hale the potential for a "Fortress Europe" auditorium March 20 for the Spring mentality that could restrict the ability Colloquia presented by the Cognitive of outsiders (such as the U.S. and Ja­ This year's recipient of the Procter & Science and Machine Intelligence pan) to penetrate European markets. Gamble undergraduate minority scholarship Laboratory (CSMIL). of $1,000 per year for two years is Tracey Featured speaker was Herbert A. (The above story is based on an arti­ Knox, right, first year BBA student, who is Simon, one of the founders of artifi­ pictured here with Norb Mayrhofer, P & G cle by first year MBA student Nicholas District Sales Manager, and Judith Good­ cial intelligence, who received the No­ W. Philip which appeared in the Mon­ man, director of admissions and student bel Prize in Economic Sciences in roe Street Journal Feb. 13. Dividend is services at the Business School. The Procter 1978. grateful for permission to reprint sub­ &f Gamble scholarship was newly established Simon, whose topic was "Do We stantial excerpts from the article.) last year. Think in Words or Pictures?" has re-

26 Dividend ceived numerous honors for his re­ Researchers Study Ways Human quires new ways of thinking of people search on human decision-making as critical tools for competitive advan­ Resource Practices Can Give and problem-solving and its implica­ tage. That in turn should lead to more tions for social institutions. He has Companies Competitive corporate success and individual published over 600 papers and Advantages accomplishment." 20 books. "Human Resource Competencies in Ulrich said the study showed that in Dr. Simon, Richard King Mellon the 1990s" was the topic of a one-day a rapidly changing industry, such as University Professor of Computer Sci­ symposium held at the Business electronics, companies where execu­ ence and Psychology at Carnegie- School in March. At the symposium, a tives spend more time on human re­ Mellon University, received the Na­ Business School research team re­ source practices have a higher tional Medal of Science in 1986. He ported the implications of data they performance in the marketplace. has been chairman of the board of di­ collected from 10,300 individuals in Similarly, in industries which de­ rectors of the Social Science Research 91 companies. Representatives of pend on complex technology, em­ Council, and of the Behavioral Science these 91 companies were among those phasis on human resource practices Division of the National Research attending the symposium. can give a competitive advantage. In a Council, and was a member of the The research team, led by David O. complex technology business, em­ President's Science Advisory Commit­ Ulrich, assistant professor of organi­ ployees must have a more complete tee. He has been a member of the zational behavior and industrial rela­ understanding of key success factors National Academy of Sciences since tions, developed a questionnaire to in the business. HR practices create 1967. measure 88 human resource activ­ and maintain a shared mind-set CSMIL is an interdisciplinary orga­ ities. The sample included such among the employees, so that they are nization, spanning the fields of artifi­ diverse firms as AT & T, Chase Man­ all pulling in the same direction. cial intelligence, cognitive science, hattan Bank, Xerox, Liz Claiborne, Firms with a strong company cul­ human-computer interactions, and General Motors Corp., IBM, and Pru­ ture are also more successful if they collaboration technology. Its primary dential Insurance. emphasize HR practices. "To some ex­ mission is to facilitate faculty research, Human resource practices are pro­ tent it doesn't matter what the culture graduate student training, and under­ cesses used to manage people. One of is," said Ulrich. "As long as you're graduate education, with a special the most important skills in this area is strong in the unity of your culture, focus on cross-college collaborations. the ability to manage the change pro­ that makes the difference." It is sponsored by the School of Busi­ cess successfully. "This has implica­ The research team included J. ness Administration, where it has its tions not only for the human resource Wayne Brockbank, assistant professor headquarters; the College of Engi­ professional," said Ulrich. 'Anyone of organizational behavior and hu­ neering; and the College of Litera­ who wants to be a leader in any staff man resource management (OB- ture, Science, and the Arts (LSA). position — be it engineering, market­ HRM); Noel M. Tichy, professor of ing, or advertising — must be able to OBHRM; Ulrich; Joseph White, asso­ manage change, point-blank." ciate dean and professor of business How Much Does It Cost to Raise Ulrich added that managing administration; and researchers Dale change involves creating meaning out Lake and Arthur Yeung. Capital in the U.S. and Japan? of chaos; building long-term relation­ The cost of raising money to fund ships based upon trust; and being creative, innovative, and visionary in business ventures in the U.S. and What About the Changing Japan was examined at the Business approaches to problem solving. Direction of the Luxury Car School's Hale auditorium during a Four criteria forjudging how well a Market? A Symposium January forum entitled "Japanese Fi­ company manages its people were nancial Markets and the Corporate listed at the symposium. They in­ Fundamental changes in how peo­ Cost of Capital." clude: whether human resource prac­ ple feel about buying a truly expen­ Tak Wakasugi, professor of finance tices help implement the business sive car have hurt the Europeans, at the University of Tokyo and a Visit­ strategy; whether they add value to helped the Americans, and opened up ing Scholar at the Business School this customers outside the business; this segment of the market to the year, talked on "Corporate Finance in whether they help create and preserve Japanese. Japan." a shared culture inside and outside Representatives from five luxury The second speaker was Stanford the business; and whether they help car makers, both foreign and domes­ University Professor James E. Hodder, the business respond in the face of tic, spoke on the changing direction of discussing "Capital Structure and the change, technological challenges, and the market at a Business School forum Cost of Capital in the U.S. and Japan." competitiveness. sponsored by the Automotive Indus­ Commenting on the presentations "We think the challenge of the try Club. were two Business School professors 1980s was opening doors to give peo­ Speakers at the forum included — Gunter Dufey, professor of inter­ ple the opportunity for change," said John C. Middlebrook, vice president national business and finance and E. Ulrich. "The challenge of the '90s, our of the marketing and product plan­ Han Kim, Fred M. Taylor Professor of data shows, is to overcome the prob­ ning staff of General Motors Corpora­ Business Administration and pro­ lem of closed minds. tion, representing the Cadillac fessor of finance. "We think managing people re­ Motorcar Division; Richard L. Mugg,

Spring 1989 27 vice president and chief executive This management briefing was held new component in the government's officer of Audi of America at for members of the Manufacturing composite index. It measures a signifi­ Volkswagen of America, Inc.; David Forum and their invited guests. The cant force in the economy, and it has Illingsworth, senior vice president, Manufacturing Forum is a group of consistently predicted economic peaks Luxus Division of Toyota Motor Sales progressive companies representing and troughs for many years. We ex­ U.S.A.; Ross H. Roberts, vice presi­ the best practice in each industry of amined numerous candidate series, dent and general manager of Lincoln- the manufacturing sector of the econ­ but only a few held up as consistent Mercury Division of Ford Motor Com­ omy. They have joined together to es­ leaders of business cycles." pany; and Hans Jordan, senior vice tablish a long-term relationship with Like a barometer, the Index of Con­ president, marketing, of Mercedes- the Business School to foster quality sumer Expectations has repeatedly Benz of North America. applied research in manufacturing declined or risen just prior to periods Introducing the forum, Bernie management. of recession or growth. For instance, it Moreno, president of the Automotive The Manufacturing Forum is spon­ declined during 1978 and fell to a low Industry Club, noted that in the next sored by the Office of Manufacturing of 44.2 in July 1979 preceding the few months, the two largest Japanese Management Research, headquar­ 1980 recession. It began rising in manufacturers will release their ver­ tered at the Business School and 1982, heralding the start of the cur­ sions of what a luxury car should be. directed by John E. Ettlie. rent expansion, and reached a peak of These cars will assault the very heart 97.7 in March 1984. (The February of the luxury car market, the $25,000 1966 Consumer Expectations Index to $40,000 arena. At the same time, = 100.) As the expansion has U-M's Index of Consumer Europe's finest makers are ascending lengthened, the index has remained at Expectations Becomes a to new heights in terms of both price relatively high levels. Leading Economic Indicator and performance, while Americas two The U-M Index of Consumer Ex­ favorite luxury makers are enjoying The U-M's Index of Consumer Ex­ pectations, a component of the widely unprecedented sales in the more tra­ pectations has been chosen by the U.S. known Index of Consumer Sentiment, ditional segments of the market. Department of Commerce to be part tracks rising or falling consumer opti­ The mission of the Automotive In­ of its Index of Leading Economic In­ mism. The index is compiled monthly dustry Club is to bring together all dicators. It appeared for the first time by Richard T Curtin, director of the University of Michigan students who in the January Index. U-M Survey of Consumers. are interested in the automotive in­ According to George Green, chief "The U-M Survey assesses the hu­ dustry, and to act as liaison between of the business outlook division of the man factor in economic affairs," automotive manufacturers (both do­ Department of Commerce Bureau of Curtin explains. "There has been mestic and international) and the Economic Analysis, "The Index of tremendous growth in discretionary U-M student body, by coordinating Consumer Expectations is a useful income over the last several decades, recruitment within each school of the University, by providing a forum for automotive thought, and by DOLLARS FOR SCHOLARS coordinating a variety of activities throughout the year.

Quality Management is Discussed at Manufacturing Forum Conference in April Senior manufacturing managers and experienced researchers met for an intensive day of exchange of ideas, issues, problems, and solutions to the challenging agenda of quality man­ agement April 26 and 27 in the Exec­ utive Education Building. Guest speakers at the conference in­ cluded Carlton Braun, vice president, director of Manufacturing Institute at Motorola Inc.; Edward D. Rothman, Kathy Petroni (left) and Sandra Burke (center) are the recipients of this year's doctoral fellow­ professor and chairman of the depart­ ships given to the Business School by the Unisys Corporation. They are pictured here with Lee Level, vice president and treasurer of Unisys (right) and Dean Gilbert R. Whitaker, Jr. The ment of statistics at The University of Unisys Corporation has given five one year scholarships to MBA students this year, and two Michigan, and Henry Milewski, Jr., doctoral fellowships. The fellowships are part of a $250,000 grant from Unisys for master's project director of American Supplier and doctoral students in the Business School and the College of Engineering. This is the fourth Institute. The talks were followed by a consecutive year Unisys has made scholarship donations to the U-M as part of its corporate round table discussion. educational relations program.

28 Dividend so mass consumer spending and sav­ conference director and director of A symposium analyzing the chal­ ing decisions have become dominant the U-M's East Asia Business Pro­ lenges for top management in the forces in pulling the economy into a gram. "But the global competitive en­ auto industry was held April 4. The recession or propelling it toward vironment continues to evolve, and panel was led by C. K. Prahalad, pro­ prosperity. restructuring must not stop." fessor of corporate strategy at the "When they make these decisions, In recent years auto manufacturers U-M School of Business Administra­ consumers are considering expected have realigned component and vehi­ tion, and included presentations by changes in future income, employ­ cle divisions and redefined the rela­ N. L. Badore, executive director of the ment, prices, and interest rates," he tionships between manufacturers, Ford Motor Co. Executive Develop­ adds. "And since shifts in consumer suppliers, and customers, Stoltenberg ment Center; and E. T. Smith, group attitudes precede economic actions, says. "Meanwhile, the parts industry vice president, automotive products measures of consumer attitudes can has been challenged both by trans­ group, Aeroquip Corp. act as leading indicators of economic plants and by new strategies among Thirteen workshops were held be­ activity." traditional firms, and labor unions are tween 9 a.m. and 5 p.m. April 5 in the experimenting with new forms of Michigan League. The three-hour cooperation." sessions focused on specialized topics KPMG Peat Marwick Gives Final These developments present new including the Bush administration's Installment on Accounting challenges to management, according trade policy; European, Southeast to Stoltenberg. "More than ever, the Asian and Chinese auto industries; Professorship key is organization and reorganization transplant manufacturing; and the A check for $6,500, representing — constant efforts to break down the long-term impact of downsizing GM. the final installment of funding for barriers that still inhibit productive the Peat Marwick Professorship estab­ cooperation," he adds. lished in 1984, has been presented to The conference included a general the Business School. forum scheduled April 4 in Rackham Detoit office partner Robert W. auditorium and workshops on spe­ Scharff, BBA '69, made the presenta­ cialized topics April 5 in the Michigan tion, and accounting professors Paul League. Danos and Robert Libby accepted the Kim B. Clark, professor of business donation on behalf of the University. administration at the Harvard Univer­ Libby is the Peat, Marwick, Mitchell & sity Business School, delivered the Co. professor of accounting at the keynote address on "Product Develop­ Business School. ment in the World Auto Industry" at KPMG Peat Marwick also sponsors 1 p.m. April 4. Research Opportunities in Account­ Also addressing the April 4 forum ing Grants that enable accounting ac­ were Donald F. Ephlin, vice president ademicians to perform empirical and and director of the General Motors statistical research on timely account­ Department, United Auto Workers; ing topics. William E. Hoglund, executive vice president, automotive components group and power products and de­ fense operations group, General International Automotive Motors Corp.; George H. Hohendorf, Conference Focuses on senior manufacturing adviser and ex­ Organizing for the 1990s ecutive vice president, Diamond-Star Organizing for the restructured au­ Motors Corp.; Ulrich Seiffert, mem­ tomobile business of the 1990s was the ber of the board, research and devel­ focus of the ninth International Auto­ opment, Volkswagen AG; and Paul W motive Industry Conference, held at Van Orden, executive vice president, the U-M April 4-5. General Electric Co. The conference was sponsored by The forum was moderated by Paul the Business School; the Center for W. McCracken, the Edmund Ezra Japanese Studies; the Office for the Distinguished University Professor Study of Automotive Transportation; Emeritus of Business Administration the Transportation Research Insti­ and Public Policy at the U-M School of tute; the Industrial Development Divi­ Business Administration. sion; and the College of Engineering. After d inner April 4, Noel M. The drastic restructuring of the Tichy, U-M professor of organiza­ American car business in the 1980s tional behavior and industrial rela­ has resulted in "glowing financial re­ tions, discussed "Global Transforma­ sults and renewed confidence," ac­ tional Leadership: Keys to Winning cording to Clyde D. Stoltenberg, the Race in the 1990s."

Spring 1989 29 the annual International Congresses children, with another one due of the IBC, held in major wrorld cities. shortly, and plans "to enjoy life and She is now a senior financial consul­ become a full-time grandpa." George A. Gustafson, MBA '47, tant for Merrill Lvnch in Southfield, writes that he is professor emeritus of Mich. Thomas Turner, BBA '55, MBA '56, accounting at California State Univer­ has retired after 32 years with the sity at Los Angeles, w^here he is still Ford Motor Company, to pursue his active as program director of long-time goal of teaching at the uni­ accounting programs. This is his 16th versity level. At the time of his retire­ year as program director of continu­ Lewis S. Elieff, BBA '53, MBA '54, ment he was general manager of ing professional education programs is a general partner with Roney & Co. Ford's International Export Sales Di­ in accounting, w-hich he initiated in Investment Brokers in Flint, and has vision, a position he held since his re­ r 1973. In his long career, he w orked as been listed in "Who's W7ho in Finance turn from South America, where he senior auditor for Haskins and Sells in and Industry every year from 1981 to was president of Ford of Venezuela Detroit, audit manager for the U.S. the present. and director-vice president of Ford of General Accounting Office in San Brazil from 1979-84. In September, he Francisco and Washington, D.C., and was appointed executive in residence senior auditor writh the Army Audit at the University of South Carolina's Agency in Detroit. He also taught for Coastal Carolina College in Conwav, many years, and has published articles South Carolina. He says he hopes to Stuart Franklin Piatt, MBA '56, in leading accounting and financial provide his students with a practical has joined the Foundation Health Cor­ professional journals. perspective of the business world in poration in Gold River, Calif, as presi­ general w-ith specific emphasis on in­ dent of the Government Division. ternational business. He and his wife Lawrence H. Brown, BBA '56, are living in the coastal Carolina area. will officially retire from the Northern Patricia H. Breen, BBA '49, Trust Company, Chicago, Illinois, on has been appointed a Deputy Director August 1, 1989, after a 31-year career. General of the International Bio­ He is now senior vice president and graphical Center in Cambridge, Eng­ head of the Capital Markets Depart­ Carl R. Pingel, BBA '57, land. In that role, she will help and ment of the Northern Trust Company. is the leading principal in the newly- advise in the planning and running of He writes that he has four grand­ founded Pingel, Maltby and Associ­ ates, which provides administrative and consulting services to the rein­ surance and insurance business from offices in Dearborn, Michigan. Previ­ William Seidman, MBA '49, and Chairman ously, Carl spent 22 years with Na­ of the FDIC, is Right in the Middle of tional Casualty Company, followed bv eight years as president of Summit the Savings and Loan Crisis Fidelity and Surety Company, a sub­ As chairman of the Federal Deposit Insurance Corporation (FDIC) William Seid­ sidiary of Dana Corporation. man, MBA '49, is right in the middle of the nations savings and loan crisis, and is frequently quoted in the nation's press. As the first step in President Bush's thrift J. D. Mooney, BBA '54, MBA '57, crisis plan, the FDIC has been given the added duty of nursing the nation's is president of the Mission Inn Motel sick thrifts. in Mission, Kansas. He writes that he Bank profits set a record in 1988, but for the FDIC, which insures bank de­ is on the board of directors and the posits, "it was the wx>rst year ever," said Seidman. "We expect fewer failures in executive committee of the American 1989," he added. The "problem list" now includes 1,350 banks, down 10 percent Hotel and Motel Association (AH & from a year ago and 20 percent from the peak in 1987. MA) and also of the Economy Lodg­ Seidman warned there could be "a huge effect on real estate markets" as the ing Council. He is also on the board of FDIC begins selling assets it is acquiring from closed savings and loan associa­ directors and the executive committee tions. He estimated that the agency would end up owning about $100 billion of the Small Properties Advisory worth of land and developed real estate from the closing of 550 insolvent savings Council and is currently serving as institutions and an additional 200 to 300 that by some definitions are also chairman of that Council. insolvent.

30 Dividend Ralph Bahna, BBA '64, Named Cruise Dewey E. Johnson, MBA '61, Industry Leader of the Decade professor of management at Califor­ Ralph M. Bahna, BBA '64, former president and CEO of Cunard, has been nia State University at Fresno, has named "Cruise Industry Leader of the Decade," in recognition of his leadership been elected president of the National and marketing vision. The award was presented by Travel Trade Publications on Small Business Institute Director's As­ behalf of the U.S. cruise travel industry. sociation (SBIDA) for 1989-90. The Bahna is regarded as one of the most innovative marketers in the travel indus­ Small Business Institute Program, try. According to a recent New York Times article, "Mr. Bahna is know:n for his founded in 1972, was founded to in­ marketing genius, salesmanship, and determination." Under Bahna, Cunard has crease the effectiveness and impact of been a pioneer in attracting the consumer through packaging and promotion; small business teaching, consultation attacking the issue of boredom at sea by introducing spas, lecture programs, and and research in colleges and univer­ top name concessionaires; broadening the cruise product with air/sea and sail 'n sities. and to educate students in small stavs and expanding the use of ships for high profile events. Additionally, business. It provides management as­ Banna's idea to run a regular schedule of QE2/Concorde combination signifi­ sistance in association with the Small cantly contributed to the eventual financial success of British Airways supersonic Business Administration to 10,000 aircraft. businesses annually using more than At age 30, Bahna was named President, USA, for Cunard, in 1973. During his 1,000 faculty and 20,000 undergradu­ term with Cunard, the 150-year-old company survived extinction by making the ate and graduate students. transition from transportation to cruising at a time when many of Cunard's competitors went out of business. Following his appointment as chief executive James R. Anderson, BSE '60, MBA '61, in 1981, the business of Cunard grew rapidly and the company achieved world­ has joined Jay Alix & Associates in wide acclaim. In recent years, it has solidified a position as the leader at the top Southfield, Mich, as a senior associate end of the cruise market, garnering most of the industry's awards for standards after a 26-year career in finance, man­ of performance. Within the last several years, Cunard has also entered the ufacturing and operations, marketing luxury hotel business and already owns or manages seven wrell-known and product development, data pro­ luxury properties. cessing systems and personnel. He served as COO of Helmac Products Corp.. president of MFG Systems Co., and held key staff and operations Jeffrey, 'just like the real world, the Gregory L. Curtner, BBA '67, JD '70, positions with Sperry Univac, Shedd's solution is not always neat and clean." has been elected to a two-year term as Food Products, MSAC Valves Inc., This is his second textbook. In 1987, a managing partner of the statewide J. L. Hudson Co., and Touche Ross "Business Forecasting Methods," was law firm of Miller, Canfield, Paddock &Co. published by Basil Blackw:ell of and Stone. He will join other manag­ Oxford. England. ing partners in administrating the law firm's ten offices. He specializes in complex commercial litigation, in­ cluding antitrust, securities, and Peter Rothenberg, BBA '62, merger and acquisition disputes. He is writes that he became vice president R. L. Sandelman, BBA '66, MBA '67, admitted to practice in the United and general counsel of the New York writes that he established Sandelman States Supreme Court, and is a past advertising firm of Chiat/Dav in & Associates, a marketing research chair of the Council of the Antitrust April. and consulting firm, in 1988. His firm Law Section of the State Bar of Michi­ conducts and analyzes proprietary gan, and a member of the Litigation Jeffrey Jarrett, BBA '62, and syndicated market research and Antitrust Law Sections of the has just finished his second textbook, studies. Currently, the firm is produc­ American Bar Association. entitled "Statistical Analysis for Deci­ ing the "Fast-Food Consumer Moni­ sion Making/' co-authored with tor," an ongoing syndicated qualita­ Arthur Kraft and published by Allyn tive and quantitative research study in 8c Bacon. Jeffrey has the Ph.D. from the fast-food category in the Los An­ New York University and is now chair­ geles market. Plans are to expand this Thomas Schumm, MBA '71, person of the Dept. of Management study to additional markets this year. is presently a district sales manager Science and Information Systems at Before establishing Sandelman 8c As­ with Combined Insurance Co., a the University of Rhode Island in sociates, Robert held marketing/ Division of Aon Corp. In 1988, he Kingston, Rhode Island. The book advertising management positions on achieved the highest rate of premium applies statistics to decision making both the client and agency sides of the growth in the state of Michigan. His situations. Each chapter finishes with deck. He has worked for Procter and district includes five counties in south­ a short case that allows the student to Gamble, General Foods, Hunt-Wesson east Michigan, including Detroit and apply the techniques just learned to a Foods, and Ogilvy 8c Mather. Wayne County. He and his wife and real world situation — and, says three children live in Howell, Mich.,

Spring 1989 31 where they have recently bought a pany's success. Before joining Dom­ of leasing and financing services new home. ino's, Don worked as a manager-in- throughout the U.S., Canada, and the training at Popp's, Inc., and became United Kingdom. It currently ranks William P. Miller, MBA '71, manager of a Great Lakes Steak Co. among the top 20 leasing companies joined Excel Corporation, a wholly- plant which was owned by Popp's. In in the U.S. As CFO, he has complete owned subsidiary of Cargill, as vice 1978, he joined Domino's Pizza Distri­ responsibility for managing the finan­ president, administration, and con­ bution Corp. as president. cial affairs of all domestic and inter­ troller in June 1988. He was formerly national operations. He is also with General Foods Corporation in involved in developing business strat­ various planning and controllership egy, establishing operating policies. capacities. and product development. He writes that he and his wife and three chil­ Don Vlcek, BBA '71, Rodney R. Filcek, BBA '75, dren recently moved from Ann Arbor is president of Domino's Pizza Distri­ was recently appointed vice president to Sylvania, Ohio. bution Corp. Tom Monaghan, Dom­ and chief financial officer of Dana ino's Pizza founder, has called the Credit Corporation, a wholly-owned Robert D. McTaggart, BBA '75, efficient distribution system built by financial services subsidiary of Dana received his JD in 1979 from Vander- Vlcek the "secret weapon" in the com­ Corporation, which provides a variety bilt law school and is now with Geary, Stahl 8c Spencer, a full-service law firm in Dallas, Texas. His area of con­ centration is commercial real estate Gregory McDuffee, BBA 73, Wants to Combine law. He was recently elected to the board of directors of the U-M club of Entrepreneurial Skills with Social Responsibility Dallas. in Real Estate Development Gregory McDuffee, BBA '73, is president and founder of two Detroit companies; Dinesh C. Tandon, MBA '75, and his Historic Realtv Co.. which is in the business of selling homes, mostlv in historic wife Marianne Tandon, MBA '76, Detroit districts; and Historic Realty Development Service Co.. which buys, have lived in Arcadia, Calif, since renovates, and manages abandoned apartment complexes in the city. 1979. Dinesh is president and CEO. Historic Realty, housed in a historic building near downtown Detroit, does no and Marianne is EFO, of EM DIN business in the suburbs. "We perceive our mission as providing affordable hous­ International Corp., a supplier of ing for everyone" in the inner city, McDuffee says. He was written up in an article products to jewelry and castings man­ in Grain's Detroit Business, which appeared in December, 1988. ufacturers and dental labs. The com­ According to that article, McDuffee's most recent project was the renovation of pany ships products to clients in the Gramont Manor, an abandoned, 50-unit apartment complex on Seward Street in U.S., Venezuela, Hong Kong, and the the New Center area that reopened in November. Philippines. The Tandons have an Since 1985, Historic Realty Development Service Co. has refurbished three eleven-year-old daughter and three- other apartment buildings in or near the New Center district: the Wayne, a 10- vear-old son. unit building across Lothrop Street from the north entrance of the Fisher Build­ ing; the Broadmoor, a 61-unit building on Delaware Street; and the Midtown, a 103-unit building on Seward Street. McDuffee said he plans to purchase three more buildings in the area next year. Doing business exclusively in the city "is the way we want it" he said, adding that Douglas O. Cook, MBA '76, refurbishing buildings in the city is a very risky business. finance professor in the College of Acquisition and renovation costs ranged from $6,000 a unit at the Midtown to Business and Administration at the S50,000 a unit at Gramont Manor, which was gutted. University of Colorado at Boulder, has Rents range from about $250 to S600 a month at the buildings, which provide been named FirstBank Holding Com­ most of the modern amenities of newer buildings. All but Gramont, which just pany Faculty Scholar. The FirstBank opened, are over 90 percent occupied. Scholar grant is given to facilitate the Local banks are starting to take a second look at financing housing projects in recruitment of outstanding new pro­ the city, McDuffee said. Before 1987, he said, all of his projects were done with fessors, and opens the opportunity for public money and private equity. professors to engage in promising re­ "There was no conventional lending support for Detroit in the early '80s," he search related to banking. Cook, who said. "The bank simply said, 'We don't make those kinds of loans.' " has the Ph.D. from the University of McDuffee said his most recent project, the Midtown, which he bought for Texas at Austin, is doing research $800,000 in 1987, was the first to get conventional financing. The partners in the which relates certificates of deposit to venture put up $500,000 and financed the remaining S300.000 on a land the financial condition of the FSLIC. contract. He is married to Kathleen Centilli. a Michigan National Bank provided the construction loan and the long-term U-M education school graduate, and financing for the Midtown. The rest of the buildings were financed with public thev have two children. money and private equity.

32 Dividend Gregory Mellema, MBA 78, Sharon Meadows, MBA '76, is a Managing has published a book, Individuals, Groups, and Shared Moral Responsibility Director of First Boston (Peter Lang, Inc.). The book deals Sharon Meadows, MBA 76, has been named a managing with issues relevant to business ethics. director of the First Boston Corporation, an international Greg is a professor of philosophy at investment banking firm with headquarters in New York Calvin College in Grand Rapids, City. She is a senior officer in the firm's reorganization Mich., where he frequently teaches group. She joined First Boston as a vice president in 1983, courses in business ethics. and was named a director in 1987 and a managing director in 1988. Her previous job was as a vice president in Steven E. Eder, MBA 78, Citibank N.A.'s North American Banking Division. has been appointed group vice presi­ dent of financial services, and control­ ler of the Taubman Company, Inc., one of the nation's leading owners, de­ gramming, and interior design. He velopers, and managers of retail and wras elected president of the Profes­ commercial real estate. Steven joined sional Services Management Associa- the company in 1980 from the ac­ Cinthia L. (Fox) Kangas, BBA 77, tion at its annual convention in counting firm of Coopers 8c Lybrand. is controller of Central Pacific Mort­ Atlanta, Georgia. Professional Serv­ Founded in 1950, the Taubman Com­ gage Company, a wholly-owned sub­ ices Management Association is a na­ pany has developed and constructed sidiary of Fireman's Fund Mortgage tional organization whose focus is the properties totaling more than 75 mil­ Corporation, located in Sacramento, management, finance, operations, hu­ lion square feet, and is involved in the Calif. She started working for CPM man resources, and marketing of pro­ development of urban and suburban the month the merger was effective fessional service firms. Mr. Vander retail and mixed use projects from and was responsible for the account­ Heide was instrumental in the start­ coast to coast and manages 20 re­ ing procedures and general ledger up of the Philadelphia Metro Group gional retail developments in major system conversion. She earned her of PSMA, and has served as vice- metropolitan areas. The company is MBA in finance in 1982 at the Univer­ president of professional develop­ headquartered in Bloomfield Hills, sity of California, Berkeley. She and ment and president-elect of the Michigan, with offices in San Fran­ her husband, Ron, live in Davis, Calif. organization. cisco and New York. Steve lives in He is CFO of Setzer Forest Products in Southfield, Michigan. Sacramento and also has an MBA in finance, which, she says, leads to some Sheila S. H. Kan, MBA 78, interesting discussions of wrork- has recently moved from Hong Kong related problems and the stock r Robert Welo, MBA 78, to Toronto, Canada, w here she is em­ market. recently completed his doctorate in in­ ployed by Imperial Oil Limited, dustrial engineering at Texas A & M Exxon's subsidiary in Canada. She is Stephen R. Timmons, MBA 77, University. He has remained with the currently on an assignment with Im­ recently formed the Corporate Con­ Army since 1969 and is currently serv­ perial Oil as a senior planner in the sulting Group after spending almost ing as a military research associate in Commercial Planning Division. The ten years with the consulting division the field of large scale simulation assignment is expected to last for of Arthur Andersen & Company and development. three years. one year as a chief financial officer. The company provides management Wade S. Lnenicka, MBA 78, and computer systems consulting writes that in January 1988 he began services to companies in various in­ serving a 4-vear term on the Citv dustries, with a primary focus on the Council of Smyrna, Georgia, repre­ Arthur J. Belfer, BBA 79, development of complex information senting Ward 2. As chairman of the writes that after graduating, he has svstems. Steve and his wife Therese Public Works Department Committee, continually moved west until he has (Ph.D. '82, MS 77) live in Houston, he is responsible for 25% of the city's now reached the "Far East." He began Texas with their two-year-old son, employees and 40% of the city's bud­ his career in Chicago with Ernst 8c Evan Christian. get. In October 1988 he wras promoted Whinney, and there met his wife, from purchasing supervisor to pur­ Linda. Arthur is now the regional ac­ G. Peter Vander Heide, MBA 77, chasing manager at Printpack. Inc., in tuarial director (Asia) of John Han- B Arch. 71, Smyrna, Georgia. He continues to cock Mutual Life Insurance is a registered architect and vice presi­ serve as a referee for college LaCrosse Company, a position which enables dent of Curtis Cox Kennedy, a games in the southeast, and was the him to travel to countries all over Philadelphia-based professional serv­ reunion chairman for his 1973 class at South East Asia. Along the way, he has ice firm with disciplines in architec­ Georgia Tech. collected professional designations of ture, land planning, landscape certified public accountant, Fellow- in architecture, civil engineering, pro­ the Society of Actuaries, member of

Spring 1989 33 the American Academy of Actuaries, on Long Island. He will be responsible and Fellow in the Life Management for profitablility analyses, insurance, Institute. They have two children. and real estate management. He says Karen M. Doren (Malina), BBA '82, the supermarket industry is very com­ Fred S. Grunewald, MBA '79, is professional practices director for petitive but that his company is one and his wife, Jerri, and children, the audit department of Barnett of the most profitable in the region. Madelyn, age 3, and Adam, 20 Banks, Inc., in Jacksonville, Florida. (It is part of the Key Food Stores months, recently moved to the Bal­ Her primary responsibilities are de­ Cooperative.) timore area where Fred has assumed veloping training programs and re­ the position of vice president of Inter­ cruiting for Barnett's auditors (located Jeffrey Nagel, MBA '83, national Marketing with Black and in Florida and Georgia). Karen and vice president of GolfGroup in New- Decker. He had been with General her husband Greg live in Gainesville, York City, writes that he has recently Electrics lighting business since grad­ Florida. finished a book entitled "The Blind uating from Michigan in 1979. His Date Survival Guide," which was pub­ last assignment with GE was general lished in March by Blockbuster Pub­ manager of market development. In lications, Inc. at P.O. Box 415-501 in his new position at Black and Decker, Greenvale, New York ($5.95 plus Fred will be responsible for product Raymond L. Johnson, Jr., BBA '83, S2.00 handling). Jeffrey says the book and market development for power has been promoted to manager of is sold only by direct mail from the tools, accessories, and household Deloitte Haskins 8c Sells in Detroit. publisher, and is a funny guide to products for the Far East, Latin Amer­ Ray lives in Ann Arbor. meeting the person of your dreams ican, and Australian markets. He will through blind dating. He adds that he be directing activities of a recently an­ Victor Ney, MBA '83, has been on over 137 blind dates over nounced venture in Japan and will the years, and will be teaching a class also direct business development ef­ writes that he and his wife Karen moved last summer to a picturesque on blind dating in New York to pro­ forts in China. He says his graduate mote the book. studies at the U-M Center for Chinese neighborhood near the Brooklyn Studies should come in handy! Bridge and within view of the Statue of Liberty. He has just become vice president, administration for Penguin Brian P. L. J. Smeenk, MBA '79, Supermarkets, Inc., which owrns eight is a partner is the law firm of Winkler, supermarkets in New York City and Filion & Wakely in Toronto, Ontario, Canada, where he represents em­ ployers in all aspects of labor relations and employment lawr. He received his Susan Link, MBA '82, is CEO of the LL.B. at the University of Ottawa. Heller Breene Ad Agency Susan Link, MBA '82, a former NASA physicist, is the CEO of the Heller Breene Advertising Agency, which has been called "New England's Hottest Agency" by the trade journal Adweek. Marcia Jablonski, MBA '81, Susan, who says she got out of physics and came to Michigan for her MBA and her husband Gregory are now co- because she felt she was becoming too specialized, worked as a consultant for owners and principal stockholders of McKinsey & Co. before going to the British firm WCRS as director of North the Livingston Radio Company, and American strategic development in 1986. When WCRS bought Heller Breene, have moved from Ann Arbor to she became CEO. Brighton to be closer to their new Susan says she wants to put the agency into long-term product positioning, or radio station, WHMI AM & FM in planning an item's image for years and decades in advance. "There are lots of Howell, Mich. Marcia is general man­ new products for high-end clients." she says. Finding the most remunerative ager of the station, and Greg is chief market segment to sell to, and the proper brand image to offer, are matters that engineer. Marcia was previously em­ require consideration from a product's birth. ployed by Domino's Pizza, where she The agency's founder, Cheryl Heller, feels visual salesmanship — design, pri­ established a corporate video depart­ marily in print media — offers certain advantages over more traditional forms of ment and was responsible for produc­ selling. "To describe quality, you can't say 'quality,' " she explains. '"You do it ing training programs for 200,000 visually. Designers are much better trained than most advertising people to employees nationwide. communicate visually because most advertising people are verbal. Our special skill is making those intangible things real. You can no longer sell products based Robert G. and Dorea Ferris John, both on facts. It's much more important to take into account how people feel." In other MBAs '81, words: provide a product with a design image that avoids reliance on verbiage proudly announce the birth of their and bypasses the consumer's analytic processes. son, Samuel Griffin John, on Tuesday Clients of Heller Breene include Reebok International Ltds., Aluminum Com­ April 4, in Summit, New Jersey. The pany of America, the Bank of Boston Corp., and the Harvard Business Review. family lives in Westfield, New Jersey.

34 Dividend signments for those clients have in­ manager for General Foods, and new- cluded new product introduction product development manager for programs, local/regional marketing, the William Wrigley, Jr. company. He Emily Wu, MBA '84, sports marketing, youth marketing, and his wife live in Elk Grove Village has left her job in account manage­ and in-store video technology. Before outside Chicago, and have one son, ment at LSI Logic to start her owrn joining Rogers, Larry wras a brand Joseph Michael. business. The Basket Case, which cre­ ates specialty gift baskets. She says, "I love being mv own boss, and am fi- natty using the skills I learned at B School. I keep my own records, make my own sales calls, plan my marketing Please Tell Us About Yourself strategy. It is challenging, fun and cre­ We would like to include more news about alumni in Divid-end-, and hope you will ative. My business offers me the flex­ help us by providing us with information about yourself. Wed like to know where ibility to travel with my fiance. Drew, you are working, and other news about you, such as promotions, Dew business r w ho is vice president and general ventures, any business or academic honors, authorship of books or articles, manager at Unisys/Convergent Tech­ or other information that would be of interest to alumni. If you would take the nologies." They just returned from the time to fill out the form below and send it to 'Tringle Smith. Editor, Dividend Lake District of Italy and are planning Magazine, School of Business Administration, The University of Michigan, a trip to Australia and New Zealand. Ann Arbor, Michigan 48109," wre would very much appreciate it. She savs that anvone visiting Northern California is welcome to look her up. Name: She lives in Los Altos Hills, where she and Drew are remodeling their house. Degree(s) and Class Years: They plan a fall wedding. Business Position: Beth Walker, MBA '84, is the new systems project coordinator Business Address: in Computing Services at the U-M Business School. She is responsible for Home Address: the "user services" area of that depart­ ment. She has worked for the Univer­ Please write below some personal or business news about yourself that we can sity since 1982, most recently as a share with other alumni. senior systems analyst for the director of purchasing and stores.

Sandra Gill Penn, MBA '84, is currently teaching at Wayne State University, and is also in partnership with her husband in a photographic retail store. City Camera, in Dear­ born. She and her husband live in Oak Park, Michigan.

Duane K. Kvizema, BBA '84, recently graduated from the Military Intelligence Officer Advanced Course at Fort Huachuca, Arizona. He has the rank of captain and is currently the assistant intelligence staff officer for the 1st Brigade, 504 Parachute Infan­ try Regiment of the 82nd Airborne Division at Fort Bragg, North Carolina.

Larry Deutsch, MBA '84, was recently promoted to account su­ pervisor for Rogers Merchandising, a subsidiary of Young & Rubicam. He presentlv manages package good cli­ ents such as Kraft, Quaker, Jacobs Suchard (Brach's). and Tropicana. As­

Spring 1989 35 Judith Grady, MBA '85, Elected to the Board Paul Canchester, MBA '85, of Directors of the Institute of Electrical and has taken a new position as manage­ Electronics Engineers ment consultant at the Blue Cross and Blue Shield Association. He consults Judith R. Grady, MBA '85, manager of support services at Bechtel Powder Corpo­ with plans systermvide on strategic ration's office in Ann Arbor, has been elected for a two-year term to the Board of and tactical business problems and Directors of the Institute of Electrical and Electronics Engineers, Inc. (IEEE). issues, and identifies business, envi­ She will represent the 28,388 members of Region 4, which covers all or part of ronmental, legislative, and competi­ ten states in the north-central U.S. tive trends facing Blue Cross and Blue The IEEE, with headquarters in New York City, is the world's largest technical Shield plans. Before coming to Blue professional organization with over 300,000 members in more than 130 Cross and Blue Shield he was director countries. of finance at the Illinois Hospital As­ After receiving her BS in electrical engineering from Vanderbilt University in sociation for three years. He is living 1968, Judith began her career with Nashville Electric Service, and joined Bechtel in Chicago, Illinois. in 1975. There she has held positions in engineering, technical services, con­ struction and project operations. During her years at Bechtel, she has been active in presenting nuclear power and women's career opportunities in engineering to community, university, professional, and media groups. In 1983, she was awarded a one-year Science and Engineering Congressional Fellowship by the Engineering Society of Detroit; she served as a legislative aide Eric Gould and James Roberts, both to Senator Carl Levin in Washington, D.C. She was a member of Bechtel's Direc­ BBA '86, tors Advisory Group from 1985-87, and is a member of Michigan Women in the are in law school — Eric at Wayne Sciences, and a senior member of the Society of Women Engineers. State University and James at George­ A member of the IEEE since 1966, Judith is active in the Southeastern Michi­ town Law in Washington, D.C. gan Section, having held the positions of section chairman, vice chairman, trea­ surer, and secretary. She belongs to the IEEE Power Engineering Society, and has Michael Hartmann, BBA '86, held numerous offices in her local chapter, including chairing it in 1980. W7ithin is a marketing research analyst at her section, in 1981/82 she served as director of Division VII, which concerns Manufacturers Bank of Detroit, and is itself with energy and power engineering. married to Jacqueline Doot, BBA '85.

Helen Chuen-Yi Kwan, is a money market dealer for Standard ber 29th. He is a product manager for Chartered Bank in Hong Kong. NCR Corp. in Dayton, Ohio. Michael J. Perullo, BBA '86, Nancy King Lentini, MBA '87, Lynne Boehringer, BBA '87, has been promoted to senior accoun­ was promoted to senior product plan­ MAcc '87, tant at Coopers & Lybrand in Boston. ner within Chevrolet Product plan­ was employed as a tax specialist with He is a member of the Massachusetts ning, and says her promotion Society of CPA's Professional Ethics Coopers 8c Lyband in Detroit after included a company car! She also graduation, entered the University of Committee, and is a volunteer down­ r w rites that she and her husband are Wisconsin Law- School in Fall, '88, and hill ski instructor with Youth Enrich­ expecting their first child in August. ment Services (a program for inner this summer will be a summer city teenagers). He is currently consid­ associate at Baker 8c McKenzie in Steven R. Brant, MBA '87, ering going back to school for his Chicago. was named product manager of MBA in 1990. bathing products in the marketing and planning department for plumb­ Adrienne Collins, BBA '86, ing and specialty products at Kohler is currently accounting manager at Company. Brant, a registered archi­ Unisys Corp., and writes that she will tect, previously worked for Unitec Arvind K. Jain, Ph.D. '79, begin studying for an MBA at the Corporation, a building and develop­ is associate professor at the School of Harvard Business School in Septem­ ing firm in Ann Arbor, where he was Business at Indiana University in ber. She says she feels confident that senior architect. He also worked for Bloomington, Ind. her Michigan BBA background will architects in Denver and Boulder, Col­ help her do well at Harvard, and she is orado. Steven and his wife, Rebecca, Cynthia Frey, MBA '77, Ph.D. '80, expecting to do management consult­ live in Kohler, Wisconsin. has left her position as associate pro­ ing after graduation in 1991. fessor and chairman of the marketing Bruce Alter, MBA '88, department at Boston College to join writes that he and his wife had a baby- the advance product planning group girl, Elizabeth Lindsay, born Novem­ at Chrysler Corporation.

36 Dividend Louis with a B.S. degree in Chemical David W. Cleverdon, MBA '40, Engineering in 1923. He received a former administrative manager of M.S. and Ph.D. degrees in Mathemat­ Westvaco's timberlands division, died ics from the University of Iowa in September 9, in Peterboro, New 1930 and 1932. Hampshire. Mr. Cleverdon, who held Survivors include his wife, Kath­ a bachelor of forestry degree from the leen, two sons, Patrick Carl Fischer of U-M in addition to his MBA, joined Nashville, Tennessee, and Michael Westvaco in 1945 in the treasurer's de­ John Fischer of Hamden, Connecti­ partment. Subsequently, he used his cut, and five grandchildren. forestry and business experience to Memorial contributions can be establish financial management pro­ made to the Carl Hahn Fischer Actu­ cedures for the company's expanding arial Fund. Checks should be made woodlands organization. When the payable to The University of Michi­ timberlands division was organized in gan and mailed to the U-M Depart­ 1955, he was promoted to administra­ ment of Mathematics, Ann Arbor, tion manager. He retired in 1977. Mich. 48109-1003, with allocation directed to the Carl Hahn Fischer Actuarial Fund.

Manfred Kochen, adjunct professor of computer infor­ mation systems at the Business School, died suddenly while returning from a meeting in Kona, Hawaii. Carl H. Fischer, Dr. Kochen was professor of infor­ professor emeritus of insurance and mation science in the Department of actuarial math at the Business School, Psychiatry and research mathemati­ died December 21, in Ann Arbor. He cian at the Mental Health Research had taught at the U-M from 1941 until Institute. he retired in 1974. Kochen was an internationally rec­ Professor Fischer was a Fellow of ognized expert on information sys­ the Society of Actuaries and of the tems and the author of over 200 Conference of Actuaries in Public articles and several books on the sub­ Practice, and a member of the Ameri­ ject. He held the Award of Merit from can Academy of Actuaries. He served the American Society of Information as a Governor of the Society and as a Science and was recently honored by Director and Vice President of the that organization as a Pioneer in In­ Conference. He was a member of an formation Science. He was recognized Advisory Council on Social Security by many professional organizations, and chairman of the Study of the Mili­ and had traveled extensively as an in­ tary Retired Pay System for the Senate vited lecturer in the United States, Committee on Armed Services, and of Europe, Asia, and Australia. several other federal and state study Born in Vienna, Austria, in 1928, commissions. he received his undergraduate degree He established a consulting actu­ from M.I.T. and his M.A. and Ph.D. in arial service which continues as Ann applied mathematics from Columbia Arbor Actuaries. Through interna­ University. Prior to coming to The tional aid programs he was a consul­ University of Michigan in 1965, he tant on social security to the was a staff member of the IBM Re­ Philippines in 1956 and 1962, and to search Center. At The University, he Liberia in 1977-78. In 1965, he or­ carried out research on knowledge ganized a program for a cohort of ac­ and information systems, problem tuarial students at the Hebrew Uni­ solving, cognitive learning, social versity in Jerusalem, and he returned planning, artificial intelligence, and to teach in the program in 1967. decision support systems. He was re­ He served on the Ann Arbor Board cipient of a number of grants from of Education, and was a trustee for 25 the National Science Foundation on years of the Ann Arbor City Em­ these and related subjects. ployees Retirement System. He is survived by his wife, Paula, Professor Fischer was graduated and sons David and Mark, of Ann from Washington University in St. Arbor. Office of Alumni Relations NON-PROFIT School of Business Administration ORGANIZATION The University of Michigan U.S. POSTAGE Ann Arbor, Michigan 48109-1234 PAID ANN ARBOR, MI PERMIT NO. 144 Address Correction Requested

The Regents of the University: Deane Baker, Paul W. Brown, Neal D. Nielsen, Philip H. Power, Thomas A. Roach, Veronica Latta Smith, Nellie M. Varner, James L. Waters, James J. Duderstadt (ex officio)

Entrepreneuring for a Cause

The assignment in the class in entrepreneurship was to think up a project to make money, so BBA student Mark Chekal, MBA student Dan Gehring, and LSA student Nick Siambis decided to make money for a cause. They organized an auction to benefit the St. Mary's Church Hunger Coalition to help the homeless in Ann Arbor.

Pictured here is Mark Chekal along with Willie the Wolverine who also attended the auction. The students contacted local businesses for items to auction, which included a cordless telephone, a football signed by members of the Detroit Lions, and a dinner for two at a local Ann Arbor restaurant. Professional auctioneers Braun and Heller donated their time to help run the auction.

Business School students also organized a spring charity ball at the Ann Arbor Inn, proceeds to benefit the Ann Arbor Shelter Association for the Homeless, and sponsored a canned food drive in the Student Lounge.