PURDUE UNIVERSITY SPRING 1999 f Building Better ^ Krannert 'Products' \m\ 1997-98 ANNUAL REPOR I Krannert Update, Spring 1999 published by Krannert School of Management, Purdue University Purdue University, West Lafayette, Indiana This digital edition was produced by the Digital Initiatives group of the Purdue Libraries Archives and Special Collections Department The original text was scanned at 400 ppi, 24 bit color and stored as uncompressed TIFF images Digital Initiatives Purdue University Libraries Archives and Special Collections http://e-archives.lib.purdue.edu July 2007 from the dean Dear Krannert Alumni and Friends, I'm delighted to repoil that in addition to fulfilling our mission of — K P A N NI-: P i i r- \ • preparing graduates who will be tomorrow's business leaders; i^ADUATt SCHC • supporting faculty who produce innovative research results and OF ^^^ practical applications; MANAGEMEN ' M • developing partnerships with industry for networking and .J^^Hs^Bb^ knowledge exchange; and • creating opportunities for lifelong leaming and professional II • development — we're in the planning stages to build a new management ^^^^^^^^R: ~-;^3r'wm,M If *• facility and renovate our current structure. P f Competition for students, employers of our graduates, and top faculty members has never been greater among the top 25 business schools. With the help of key alumni and friends, we've assessed our School's current and future needs in terms of facilities and technology as well as Krannert's potential for a successful capital campaign. As we hone our strategic edge, creating a high-tech, crossfunctional, team-oriented 21st century leaming environment has become a first priority for Krannert and Purdue. Yet we also are focused beyond bricks and mortar We see a crucial opportunity to raise the bar for our fine students and faculty by offering increased scholarships, graduate awards, and faculty support. Those of us who know the value of a Purdue and Krannert education have a real incentive to give back in order to help future generations of students and faculty, and thus ensure Krannert's impact on woridwide business and our society. As evidenced by your past support of and gifts to Krannert, we are convinced we have the ability to raise the funds that will position Krannert as the school at which "business and technology meet" for the next 25 years. Richard E. Dauch, BSIM '64, and his family already have kicked off our efforts with a spectacular $5 million pledge to Krannert. Watch this space in future issues oi Portfolio for more news about our strategic plans. We hope to hear your ideas about Krannert's future. We ask for your continued support of our annual operations as well as an investment in our building plans to make such goals a reality. Sincerely, Dennis J. Weidenaar Dean K1 R A .wtiouTHE ALUMNI MAGAZINE OF THE PURDUE UNIVERSIToY KRANNERT GRADUATE SCHOOL OF MANAGEMENT AND SCHOOL OF MANAGEMENT SPRING 1999 VOLUME 6 ISSUE 1 Building Better Krannert 'Products' ON THE COVER Krannert's "products" are our people. From left: Prof. Arnold C. Cooper, Louis A. Well, Jr, Professor in Management; Jennifer L. Brown, BSM '97; Prof. Chariene Sullivan (standing) with '98 master's graduates Zhen Wang, Sanjay Reddy, and Russell Flugel; Richard E. Dauch, BSIM '64; and page 5 Indranil Bose, PhD '97. ^CHO^ 2 W. Wayne Booker: Distinguished Executive Lecture 4 Scliool News 6 1997-98 Annual Report 8 Krannert Associates 9 Individual Investors 19 Intra-Firm Companies 20 Matching Gift Companies and Donors 29 Faculty/Staff News page 32 31 Prof. Susan Watts: Whispers Heard 'Round the World 32 Student News 34 Alumni Agenda 38 Venu Srinivasan: Truly World-Class Quality 39 Development News 41 Joanne Widiger: The Stock Picker's Gradu"a^ Award page 31 42 Class Notes The U.S. Economy in the 21st Century: Are You Ready for It? by Emily Hunteman A s one who was bom in the first half of the j\ 20th century, the year 2000 seemed like a /~% long way away But for you, who were X JL bom in the latter half of the 20th cen­ tury, the 21st century is very much the present. Meanwhile, China will likely be the largest The next century is the one in which you will world economy, with a GDP of $17.1 trillion — make your mark. But what kind of future will you $3.6 trillion larger than the U.S. economy The per face, and are you ready for it? capita income of the Chinese, however, will be only 2020 Forecast: $12,000 — three and a half times less than the Worldwide Economic Growth per capita income of the U.S. Currently, the per capita income for North America Furthermore, many experts are predicting that is $24,000 ($30,000 for the U.S. alone). By the year the euro may become a major intemational cur­ 2020, per capita income for North Americans in rency, threatening the supremacy of the U.S. dollar today's dollars is expected to rise to $36,000 as a first-choice currency. W.Wayne Booker, BS (IND ($43,000 for the U.S.). So imagine a world where the U.S. ranks sec­ North America will grow at a moderate rate ond to China in economic size, with the euro a ECON) '36, vice chairman of during the next 25 years. Whereas the total GDP is favored currency. In this kind of world, how can Ford Motor Company, gave now $9.4 trillion, it will nearly double to $17.3 you make your mark? trillion by the year 2020 — again, in 1998 dollars. the Krannert Distinguished Strategies for Success As for Europe, the average per capita income Here are five quick ideas, gleaned from my years of Executive Lecture in August for the 19 major market nations (mostly, those conducting intemational business for Ford Motor within the European Union) is $19,000. By the 1998 to the entering class of Company: year 2020, per capita income for the 26-member 1) Become Global, Not Local Krannert master's students. EU is expected to be $31,000. When I started my career, the horizon of the Likewise, the total GDP of the 19 European Thefolloiving story summa­ automobile industry began in East Detroit and nations is currently $8.4 trillion. By the year 2020, stretched all the way... to Dearborn. Competition rizes his speech. the GDP of the 26-member EU will rise to $14.9 from Europe was minuscule — the original VW trillion. Beetle — while competition from Asia was virtu­ In Asia, Japan continues to become richer per ally non-existent. Today, however, an automotive capita, but grows somewhat slowly in population. enterprise will not succeed unless it acts like a The total Japanese GDP will grow from $3.1 tril­ global entity, with operations in other nations and lion currently to $4.4 trillion in 2020. run by people from diverse backgrounds. Globalism is more than geography. It encom­ passes an understanding that most major busi­ nesses are entwined. Competition transcends national borders; but so, too, do opportunities. Kranneri t'ortfolio 2 Wmter 1998-99 '1 define the American enterprise model as one characterized by vision, discipline, W. Wayne perseverance, and, BOOlCOir above all, the entrepreneurial 'can-do' spirit,'' 4) Hire the Best Talent Possible characterized by vision, discipline, perseverance, The better the people, the better the organiza­ and, above all, the entrepreneurial "can-do" spirit. tion. The truism of today's business is that we are Anyone of any nationality can be an entrepre­ only as good as our people. neur. They simply need the financial and regula­ Once you orient yourself to globalism, you can In many industries, innovation can be tory systems such as ours to support their business. develop strategies that meet local needs as they matched with shorter and shorter time frames. This is not true elsewhere, and it is why we have so complement global objectives. This strategy is part Continuous innovation, along with products and many people from different nations coming here of the "reasoned and flexible" approach Ford is services, needs to be continually refreshed with to pursue their dreams. using to grow its business in the emerging markets new ideas. Those ideas come from people — good Ideally, the businesses immigrants create here of Central Europe and Asia. people! will not remain exclusively within our borders, but 2) Learn to Embrace Change 5) Value the American expand outward to reunite these immigrants with If there is one constant in our society, it is Enterprise Model their home countries. change. And today, change happens in seconds. From my observation, the United States is truly While none of us is certain what the next cen­ Regis McKenna's book on the topic. Real Time, the best culture for business in the world. I do not tury will bring, we can prepare ourselves by recog­ defines the term as a period "when time and dis­ mean to sound jingoistic, nor do I mean to ex­ nizing globalism, embracing change, continually tance vanish and action and response become clude other nationalities. educating ourselves, hiring the best talent, and simultaneous." I define the American enterprise model as one valuing the American enterprise model. As business people, we must embrace change. Business history shows that companies that antici­ FORD MOTOR COMPANY PROFILE pate change — such as Coca-Cola, Dell, Established 1903 Microsoft, and Ford, if I may say so — are those Sales and revenues (in millions) $153,627 that benefit from it. Meanwhile, companies that Total return to shareholders 57 percent fear change — such as certain airlines, banks, Number of employees 225,900 (Ford Automotive Operations); 15,900 (Ford and food companies — fail for lack of foresight.