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t might well take a week of phone is an interview with Professor Joel The Business School student calls as well as numerous visits to Slemrod, director of the Office of newspaper The Monroe Street Journal, the School to access the wealth of Tax Policy Research, about the pros is now also being published on-line information now available by and cons of the flat tax. (http://www.umich.edu/~msjrnl), as Iaccessing the home page of the Dividend is also available through is detailed information about the city University of Michigan Business the alumni section of the home of Ann Arbor (http://online. ann- School (http://www.bus.umich.edu/). page. There you can write a letter to arbor.mi.us/ann-arbor/online. There you can find information the editor, change your address, or html). The University of Michigan about the admissions office, execu­ contribute a "Class Notes" item. and the U-M Alumni Association also tive education programs, office of Excerpts from the current issue are have home pages on the Internet career development, the William also on-line at that site. (http://www.umich.edu). Davidson Institute, the Tauber Tom Shaheen, computer systems Manufacturing Institute, the BBA consultant in Computing Services at A Classroom on the Web program, the Global MBA, and our the School, designed and produced curriculum. And with the Web's the Web Site, working with BBA ability to link documents together students Rich Blank and David Cole. Francine Lafontaine, associate through words and pictures, any Using Microsoft Word, Adobe professor of business economics, has piece of information is easy to find. Acrobat, scanners and a digital introduced a home page for her Many of the documents, brochures, camera, the team put the entire site MBA core economics class. As an and bulletins about programs are together in about six months. experiment, she created a "Web also available for downloading. Shaheen tells us that more than classroom" to organize and make available all class materials to An exact copy of the admissions 25,000 people have accessed the site, students. application can be seen and down­ and more than 500 admissions "I think that there is value-added loaded to your computer, if you so applications have been downloaded in the way information can be desire. An interview with Dean — all this before any formal an­ White about the current state of the nouncement has been made of the School is available for reading, as site's existence. Continued on page 45 Volume 27, No. 1 Dividend Winter 1996

Margins Really Matter 2 An experimental course in new product development, offered under the auspices of the Tauber Manufacturing Institute, gives students insight into both business and manufacturing.

10 A Lot Can Happen in 25 Years Two highly accomplished graduates of the MBA class of 1970 were at the Business School in the fall and talked to students about their interesting and distinguished careers. So what did they say?

14 Home Sweet Home Business School students raised the money and provided the labor to Pao-e 20 build a Habitat for Humanity house in Ann Arbor. At Christmastime, the house was dedicated and the Thomas family moved in.

16 Business School Launches Daewoo Executive Program This new program will offer directors of the 25 companies that comprise the Daewoo Group a condensed version of the education the Daewoo MBA students are getting in the Global MBA program.

20 age A Place for Lucrative Introductions Money looking for a place to go meets innovative companies at the annual Growth Capital Symposium

24 Customer Satisfaction: Are U.S. Companies Moving in the Wrong Direction? A new national scorecard of customer satisfaction, originated at the U-M Business School, is flashing a warning. Overall, U.S. companies lost points last year. Page 29 Other Articles Introducing the New CEMP Advisory Board 7

Professor Bernard Dies Suddenly at 42 18 Alumni Activities 26 Among Ourselves 30 Class Notes 38 Quote UnQuote 48

Page 18

Pictures on the cover show students participating in a neiu experimental course that requires teams of business and engineering students first to design and manufacture a consumer product, and second, to compete against other student teams in marketing the product to actual customers. The top two photos are by D. C. Goings and the bottom two are by Gregory Fox.

Dean: B.Joseph Wiiite, Associate Deans: Edward A. Snyder, George Siedel III, Janet A. Weiss Editor: Pringle Smith Design: Kalhy Krick, U of M Marketing Communications Copyright © 1996 by the University of Michigan Business School. This publication is made possible through the generosity of private donations. Dividend is published twice a year - in Winter and Summer. The Fall issue has been replaced by Highlights, the annual report of the University of Michigan Business School. CiRecycled paper in the spirit of conservation. Margins Re

Experimental Course in New Product Development Gives Students Insight into Both Business and Manufacturing

rofessor William Lovejoy is posi­ tioned on all fours in his classroom, the better to examine a camera mount standing on the floor in Pfront of him. "Are these things hinged in there?" he asks, pointing to a particular spot This conference between Lovejoy and a as he manipulates the camera back and student team is taking place at the "design forth on the mount. review" phase of an experimental course in The students who have manufactured the New Product Development, offered under camera mount look thoughtful. "We may the auspices of the Tauber Manufacturing delete that feature owing to cost consider­ Institute (TMI). The course requires teams ations," they say. "Okay," says Lovejoy. "In of business and engineering students to mass production, you'd be better off avoid­ design and manufacture a consumer prod­ ing machining." He looks at the product uct, and then compete against other student from all sides. "Every dime you drive out of teams to market the product to actual this is money in the bank," he muses. customers. The course is team-taught by "Margins really matter." Lovejoy, professor of operations manage- ally Matter

M A collection of the brochures cre­ ated by students to market their QUICKSILVER camera mounts to community people attending the Trade Fair. ONLY $17.49! I HI

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4 /WINTER 1996 constraints placed on them by the economic labor intensive aspect of the course as it is context. Product development is the perfect currently configured. vehicle for bringing these two cultures The culmination of all this effort was together." visible on November 29, when students Such a marriage of business and manufac­ marketed their products to several hun­ turing is the premise behind the Tauber dred people from the community at a Manufacturing Institute (TMI), which aims Trade Fair. Those who attended entered to overcome the traditional long-standing the wide atrium of one of the engineering separation between the two fields. TMI buildings on campus to be greeted by eight students are drawn from both worlds, and different booths, six of which were adorned the curriculum develops a new breed of with balloons, picture displays, promo­ executives who combine advanced capabili­ tional signs, and enthusiastic students ready ties in both engineering and business to give visitors information on why their management. Lovejoy, who has a bachelors degree in industrial engineering and a masters in nuclear engineering from Cornell as well as a Ph.D. in operations research from the University of Delaware, initiated a similar course at Stanford when he joined the faculty there, and when he came to Michi­ gan in 1994, one of his goals was to continue and refine the concept. The course in New Product Development begins with a seven-week module devoted to market research and the practice of manu­ facturing. Students learn how to quantify, via conjoint analysis, the trade-offs that consumers make in choosing products. Each team surveys 30 potential consum ers, and the aggregate results of these surveys are used to build a market simulator. During this time, students also receive structured instruction on general purpose machine tools (safety, lathes and mills, CAD and NC machining) at Washtenaw Community College. In the second seven weeks, students learn about the basic capabilities and economics of alternative materials and manufacturing process selections. Topics include materials selection and costing, manufacturing process (e.g. machining, injection molding, etc.) selection and costing, forecasting, pricing, and inventory stocking policies. Students are graded on the profitability of their product and their team participation, as well as individual creativity, attention to detail, and mastery of processes. "There are so many things to juggle in this course," says Lovejoy. "Each year we add more and more sophistication and more and particular product was more complexity." Lovejoy and Bean are superior. "Get into the now working on "modularizing" the course, picture!" proclaimed a sign on so that several faculty members can teach one student booth, marketing a different sections, thus reducing the highly product called "Quik Stix" (Two free rolls

Dividend / 5 of film with purchase!). "Earth Pod" assume they would buy a camera mount that ($24.95) offered two height options as well night and then to make an objective assess­ as promising two percent of all Earth Pod ment as to which their favorites would be if profits to the National Wildlife Federation. they had to choose among these eight That booth was decorated with balloons and products at their declared prices (thus the offered a raffle of a free T-shirt. The low end two commercially available products were of the price scale was occupied by "Quick also in the competition). Guests were asked Silver" (only $17.49) which came with its to register their own personal preferences own carrying bag and would fit in a pocket for the products, regardless of how well they or a glove box. It also had independently thought each product would do in the real adjustable legs which allowed it to adapt to market. The fraction of respondents who uneven surfaces. The "Quick Shot" ($29.99) chose each product would represent that booth had chocolate available as well as a product's simulated market share. lifetime guarantee. "When seconds At the feedback session following the count..." said its promotional material, trade fair, students learned that one team explaining to customers what a quick setup had overstocked by almost $1 million, time it offered. making the importance of the inventory Two tables were barren. No brochures. decision obvious. All the student teams beat No balloons. They contained two standard the commercial products on market share, commercial camera mounts currently but the one achieving the most market share available through stores or catalogs. (24%) was Quick Silver ($17.49). "One Guests roamed the trade show, speaking Touch," which at $65.00 aimed at the high with students, taking notes, listening to the end of the market, achieved the greatest At the Trade Fair, one sales pitches, and giving feedback on the profitability ($1.7 million) on a market share student demonstrates product designs. Many guests had partici­ of 15 %. Student teams whose products did the special qualities of "Quickshot," while pated in focus groups the students had not do well were still enthusiastic about the another works on sell­ initiated as part of their market research. course, emphasizing how much they had ing his team's design learned. The environment, they said, was to a customer.T one in which failure could teach them valuable lessons that would stand them in good stead when they entered the "real world" marketplace. "There are few courses in the country that evaluate the final product along the critical dimen­ sions of satisfy­ ing real people with fully func­ tional products at affordable prices," said Lovejoy, who also plans to do research on the data collected from var­ ious design teams working through a design process. "The results of this hands-on approach offer many insights into the critical Toward the end of the trade show, little strategic value of design groups of guests were to be seen sitting on management and cross- the benches conferring about the products disciplinary training, as well as developing in or filling out the feedback forms on which all students an ability to work in teams of they were asked to rank (from one to eight) combined management and engineering their product preferences. They were told to expertise." •

6 /WINTER 1996 Introducing the New CEMP Advisory Board

The Corporate Environmental Management Program Has Appointed a Board Whose Members Reflect the Program's Variety

"We are especially pleased with the mix of "The environment is now offering expertise on our new Advisory Board business opportunities to innovators in the because it reflects the three different tracks field," said Professor Hart, "as well as a that we see people following in the Corpo­ quagmire of costs and liability for the rate Environmental Management Program laggards. Indeed, it is likely that competitive (CEMP)," says Professor Stuart Hart, direc­ advantage in the coming years will be rooted tor. He explains that one track consists of in practices such as pollution prevention, jobs in corporations; another encompasses design for the environment, life-cycle jobs in environmental groups and non­ costing, risk assessment, and sustainable governmental organizations; and the third development." consists of consulting, either in a regular The Corporate Environmental Manage­ consulting firm or a firm specializing in ment Program (CEMP) was created by the environmental consulting. University of Michigan Business School and All of those fields are represented on the the School of Natural Resources and Envi­ current Advisory Board, which held its first ronment to equip executives, managers, and meeting in September at the Business environmentalists with the skills and knowl­ School. Members heard presentations about edge necessary to create environmentally the teaching and research agendas of CEMP and economically sustainable organizations. and reports from students about their Executives and managers now must consider backgrounds before entering the program, the environmental impact of their decisions, their internships, and placement possibili­ and environmentalists need business savvy ties. The day ended with a discussion of and economic expertise to keep their own emerging issues in the further development enterprises afloat and to address the thorny of CEMP. economic issues that are an inevitable part

Dividend / 7 of environmental problems. along with electives that integrate environ­ "CEMP is a truly integrated program," mental management issues into exisiting commented Dean B.Joseph White. "It looks classes and traditional topics. Other elements for opportunities where focused intellectual of the program include executive education, leadership would make a difference, and summer internships, research projects, brings that leadership to the program, both seminars by visiting practitioners, confer­ through a shared research agenda and by ences on emerging environmental topics, careful thinking about the curriculum." and the ongoing Nathan Lecture Series in Students in the CEMP program complete Corporate Environmental Management. one year of required courses at each of the Pictures of some of the Advisory Board two schools. The third year is comprised of members who were present at the first CEMP courses specifically designed to meeting are below. In the box at right, the address issues of environmental management, names and titles of all members of the Board are listed. Ralph Earle, now • director of the Alli­ ance for Environ­ Alex Pollock (left) who is in charge • mental Innovation of the Michigan Division of the Envi­ of the Environmen­ ronment, Health and Safety for Dow tal Defense Fund, Chemical, and James Kelly, chair­ and formerly a con­ man of Gemini Consulting, who is in sultant with Arthur the midst of launching a practice D. Little in their area in the field of strategic envi­ environmental man ronmental management. During his agement practice. time here for the Board Meeting, Kelly also gave a talk to business students, which was co-sponsored by CEMP and the Student Consult­ ing Club.

M John Begley, strategic planning director for Weyerhaeuser, a company which has made significant investments in recycleable fibers, along with doing considerable thinking about sustainable forestry.

ABryan Thomlison, director of > 1 public affairs for Church & Dwight Co., Inc. His back­ ground is in marketing/commu­ nications and he has worked extensively on the issue of stakeholder involvement in environmental issues. ADavid Rae, vice presi­ dent of environmental science at Dupont, talks Alrv Salmeen, manager of the chemistry department at with Susan Svoboda, Ford Motor Company, is pictured with fellow board former CEMP manager. member Peter Beardmore, director of the chemicals and physical sciences lab at Ford. Both men work on the en­ vironmental impact of the automobile.

8 /WINTER 1996 Professor Stuart Hart, director of CEMP (right), talks with Scott Noesen, Manager of Environ­ mental Performance at Dow Chemical, where he works on life-cycle analysis at the product level and is involved with product stewardship. • MEMBERS OF THE BOARD MATTHEW ARNOLD, President, I The Management Institute for Environment and Business

JOHN BEGLEY, Strategic Planning Director, Weyerhaeuser

JACQUELINE ALOISI DE LARDEREL, Director, Industry and Environment

United Nations Environment Programme

JAMES KELLY, Co-Chair, Gemini Consulting

PALL MURRAY, Manager, Environmental Affairs, Herman Miller, Inc. ALEX POLLOCK, Director of Environmental Health and Safety Services Dow Chemical Company DR. IRV SALMEEN, Manager, Chemistry Department, Ford Motor Company

PETER BEARDMORE, Director, Chemicals and Physical Sciences Lab Ford Motor Company

KAREN BLADES Technology & Environment Office, AT&T

RALPH EARLE, Director, Alliance for Environmental Innovation Environmental Defense Fund

MICHAEL MCCLOSKEY, Chairman, Sierra Club

Scon NOESEN, Manager, Environmental Performance, Dow Chemical Company

DAVID RAE, Vice President, Experimental Science & Technology Dupont Experimental Station

A Paul Shrivastava, pro­ DR. PAUL SHRIVASTAVA, Howard I. Scott Professor of fessor of management at Bucknell, who is also edi­ Management & Editor-in-Chief tor-in-chief of Industrial Industrial Crisis Quarterly, Bucknell University Crisis Quarterly. He and Professor Hart are re­ BRYAN THOMLISON, Director, search collaborators. Public Affairs, Church & Dwight Co., Inc.

DAVID WHEELER, General Manager, Environment, Health, and Safety, The Body Shop

DR. ALVARO UMANA, Professor, INCAE, Costa Rica

Photos by Gregory Fox

Dividend / 9 MBA Class of 1970 A Lot Can Hap

Roberto de Ocampo, MBA '70, a black belt in karate, was recog­ nized at age 29 for his role in establishing the rural electrification program of the Philip­ pines — now he has been chosen Finance Minister of the Year by Euromoney magazine.

Euromoney Magazine Chooses Phillipines' Roberto de Ocampo Finance Minister of the Year

oberto de Ocampo, MBA '70, Finance Minister of the Philippines, Rhas been selected Finance Minister of the Year by Euromoney magazine. Under the headline, "De Ocampo's Healing Touch," the magazine explains that de Ocampo's economic reforms have cured inflation, healed the budget deficit, and even made the capital markets look healthy again. De Ocampo is the first Filipino to receive the Euromoney award, considered very prestigious in the international financial community. He was selected by an international panel from among all finance ministers worldwide. The prize was presented to him on October 9,

Continued on page 12

10 /WINTER 1996 pen in 25 Years

Steve Sanger, MBA '70, wanted to own the best bar in Ann Arbor 25 years ago — instead he became CEO of a $9 billion food company.

Both de Ocampo and Sanger came to the U-M Business School in October, and both talked to students about their interest­ ing and distinguished careers. So what did they say?

Steve Sanger is Chairman and CEO of General Mills, a $9 Billion Food Company

teve Sanger, MBA '70, chairman and CEO of General Mills, started Shis talk in Hale with reminiscences about the School 25 years ago. The electronic calculator hadn't been invented then, he reminded the students, and neither had the personal computer. People came for the MBA right out of undergraduate school (unlike today, when students as a rule have several years of working experience), and accounting was the career of choice. "We had a lot on our minds then," he said, citing as a major example the lottery dates for the draft. "Every student was either an ex-service person, a female (very few were female) or worried about

Continued on page 13

Dividend / 11 tion," says one local market partici­ speaks well of him that he's willing to De Ocampo continued pant. While de Ocampo is very much try something new to widen the tax 1995 in the presence of finance a team player, he is also a tough base and increase collection," says ministers and central bank governors opponent. He has a black belt in Buenaventura. "His method has not from all over the world who were karate, and the very mention of been confrontational but persistent." attending the joint annual meetings playing golf with him terrifies senior De Ocampo has also had a hand in of the International Monetary Fund bankers: "I'd hold on to my wallet banking reforms, and has been a in Washington, D.C. Following that rather than play Bobby," says Roman leading advocate of deregulation, and meeting, Secretary de Ocampo Azanza, president of Crosby Securi­ private sector funding of public journeyed to Ann Arbor to attend ties and chairman of the policy- infrastructure projects. the 25th reunion of his MBA class. setting Capital Markets Development Past winners of the Finance Minis­ According to an article in the Council. And Rafael Buenaventura, ter of the Year award have included September, 1995 issue of Euromoney, president of PCI Bank and of the Edouard Balladour of France, who de Ocampo has won respect by Bankers Association of the Philip­ later became prime minister; Domingo presiding over perhaps the least pines, quips, "He doesn't just win Cavallo of Argentina, who is presently expected recovery of an Asian because he's our regulator." his country's highest ranking minister; economy. He has shown the outside De Ocampo has been intimately James Baker, former secretary of world that the freewheeling system involved in the process of reform, treasury and secretary of state of the in the Philippines can work. Not only U.S.; Turqut Ozal of Turkey who that, his reforms are also propelling became prime minister and then the Philippines' capital markets president; Nigel Lawton of the United towards the standards of a G7 Kingdom who went on to the House of country. During a Euromoney maga­ Lords; Philippe Maystadt of Belgium zine interview, he said, "I'm looking who was briefly deputy prime minister; in capital markets reform at some­ and Paul Keating, prime minister of thing that will encourage the mobili­ Australia. zation of domestic savings by the This is not the first award for de introduction of such items as mutual Ocampo, who was chosen one of ten funds, domestic bonds, the encour­ outstanding young men at age 29 in agement of provident funds, etc. At recognition of his role in establishing the same time, I (want to be) able to the rural electrification program of continue to attract investments from the Philippines. He was also the abroad, making the Philippines an youngest vice chairman and chairman interesting investment destination of the Development Bank of the for international finance managers." Philippines, and it was during his He expanded on his views and attending every meeting of the tenure as chairman that the DBP answered questions from business Capital Markets Development garnered numerous awards, including students during his visit to Ann Council and working as part of a international recognition as the Arbor, when he spoke at a special team that has concentrated on world's second soundest bank. meeting arranged by the Interna­ detailed plans to revive markets that But in an interview with him tional Business Club. are governed by laws drafted over 30 published in Asiaweek of October 20, De Ocampo's record on the years ago. He has also been instru­ 1995, the headline announced, "No economy speaks for itself: the mental in setting up a central Letup for an Architect of the Philip­ Philippines is no longer the sick man depositary run by the Philippine pine Turnaround." The magazine of Asia, explains the Euromoney Stock Exchange, which will herald asked de Ocampo if there was any­ article. The government achieved its scripless trading, eliminate clearing thing to worry about? "'The word is first budget surplus since the 1970s and transfer risk and reduce the not worry,,'" he replied. '"We have to and has met all its fiscal performance settlement period from the current be more alert, now more than last targets. Inflation is in single figures 28 days. Domestic bond market year. We have to sustain momentum. and is on course to meet the IMF's reforms are also underway, pending Malaysia has had eight years of sus­ revised target of 7.5% for the year. changes to the tax structure, accord­ tained growth. We have had only two. Many Philippine bankers say de ing to the Euromoney article. We can do it a third year. We should Ocampo's personality suits his job Fiscal reforms have been a identify the remaining structural perfectly. "He draws a fine line cornerstone of de Ocampo's eco­ bottlenecks and not be distracted between being open and never nomic policy. A tax reform bill from creating wealth so more can be forgetting that he belongs to a highly covering income and business taxes distributed. It is not yet time to proactive and regulatory organiza­ will lead to tax rates being cut. "It party.'" •

12 /WINTER 1996 had represented 35% of total sales products world wide," said Sanger. Sanger continued but only 21% of General Mills's A series of joint ventures with the lottery," he said. "Bigness was operating earnings in fiscal 1994. knowledgeable partners has given still in vogue. Big cars, big comput­ "We don't want to be the world's Mills the infrastructure, knowledge ers, big companies with everything biggest food company," Sanger told and distribution channels to vertically integrated. Those were the the students, "but we do want to be a expand into international markets. days of whoppers — 'the bigger the leader in innovation. In order to Cereal Partners Worldwide, a joint burger the better the burger.'" generate innovation, we do several venture formed with Nestle in "I didn't care for business," he things. First, we ask for it from our 1990, has made significant in-roads confided. "My personal passion was employees; second, we recognize on Kellogg's dominant European 'doing things.' I booked concert and reward it; third, we recognize position. In 1991, Mills and acts. I put money down and then that perfection is not the goal — PepsiCo, merged their interna­ waited to see if enough people getting something started is the goal. tional strengths to create Snack signed up for the concert to pay off The first idea may not be good, but it Ventures Europe, which is cur­ the debt. And my real deep rently an $830 million desire was to own the best bar business, and by the year in Ann Arbor." 2000 is projected to After graduation Sanger earn $2 billion. The joined Procter & Gamble, company's latest joint where he worked for three venture is with CPC years before taking a job at International; Interna­ General Mills, where he has tional Dessert Products managed most of the has put Betty Crocker company's biggest brands. on local store shelves in Before being elected execu­ South America. General tive vice president in October Mills has a goal of 1991, he served as president earning 25% of its rev­ of the Big G Division, presi­ enues from outside the dent of Yoplait USA and U.S. by the end of the general manager of the New decade. Business Development Accompanying Division. In 1992 he was Sanger on his visit to the elected vice chairman of the University of Michigan General Mills board of Business School were directors. He became presi­ several alumni, includ­ dent of the company in 1993 ing Wayne Hamilton, and chairman and CEO in MBA '95, assistant May, 1995. marketing manager of According to a Sept. 28, the Gold Medal Divi­ sion; Steve Marlowe, 1995 article in the Wall Street Sanger showed slides to the students illustrating the ways Journal, General Mills today is General Mills is expanding into international markets. MBA'94,JohnStarkey, a "trimmer, more focused MBA '95, and Karen food maker, with new top manage­ may be second cousin to an idea that Wisham, MBA '95, all assistant ment, a reorganized sales force and is very very good. Fourth, we want to marketing managers for Snacks manufacturing plants where engi­ have big hairy audacious goals — Unlimited; Karen Buczek, MBA neers liken themselves to race-car pit stretch objectives where we try to do '94, assistant marketing manager of crews." The Wall Street Journal goes something that we don't know how the Big G Division; and Kelly on to explain that for shareholders, to do; or think of new ways to do Woodley, MBA '95, assistant the rejuvenation couldn't come things that will meet that standard." manager of recuitment. soon enough. In the two years Meanwhile, Sanger is busy improv­ Sanger concluded his talk by before Sanger took over, the price of ing brands, working on productivity telling the students, "I found ajob the stock had sunk from the mid-70s improvements, and pushing for even more fun than being CEO of to the high 40s, and earnings rapid growth. Last year international the best bar in Ann Arbor. Things followed the same path. sales accounted for 14% of the total. don't always turn out as you had The company has now spun off its But the company is working on planned . . . sometimes they turn $3 billion Red Lobster and Olive creating a "nimble and effective web out better." • Garden restaurant subsidiary, which of food companies that can take our

Dividend / 13 Monique Thomas and • her three children, Ali­ cia, Tamika and Rich­ ard, are pictured with second year MBA stu­ dents Mark Milstein and Jody Glancy out­ side the Habitat for Humanity house which is now their home. The house was sponsored and built by University of Michigan Business School students.

Home Sweet Home

wo weeks before Glancy, who headed up the Christmas, project's fundraising efforts, Monique Thomas Thomas were there, along with Dean B. and her children Joseph White and Global Thosted their first party in Family Hosts Citizenship Director Graham their new house. Though Mercer.The house was fi­ it lacked paint, shingles, Its First nanced and constructed by flooring and most major Party at B- members of the Business appliances, the house was School community, along with full of warmth and good School Habitat Monique herself, who spent cheer, thanks to a fully for Humanity 200 equity hours working on functional furnace and the house. more than 50 well wishers House Which The project began when who crammed them­ members of the MBA class of selves into the living room is Now Their 1996 spent their Global to help the Thomases Home Citizenship orientation project celebrate. (during the first week of Very special guests at school in 1994), working for the party were members of Habitat for Humanity in the MBA class of 1996, who Midland, Mich. After that took on the two-year coordinated effort of experience, they decided to launch a similar sponsoring a Habitat for Humanity house project in Ann Arbor, which meant raising on behalf of the University of Michigan $40,000 and providing the labor required to Business School. Second-year MBA students build the Habitat for Humanity home. Their Mark Milstein, director of the UMBS goal was to have the house, which was Habitat for Humanity Project, and Jody designed by U-M architecture student

14 /WINTER 1996 Michael Muse, completed by the time they but they kept coming back and they graduated in 1996. did a great job." The foundation of the 1,300 square-foot Monique Tho­ house was poured over the summer, and the mas has worked for walls were raised by students during Global the University of Citizenship orientation week in fall, 1995. Michigan Hospital as Meanwhile, students embarked on energetic a receptionist in fundraising efforts. There was the inaugural radiology for the past B-School Run for Housing, with 177 regis­ 17 years, and says that tered runners, which raised $1,200; the as a single parent on a auction of faculty-provided services (e.g., receptionist's salary, she golf with your favorite professor), which never thought she would raised $5,687; and assorted smaller fund own her own home. She raising projects, such as the sale of special T- was selected by Habi­ shirts ($1,000). tat for Humanity after A significant amount of money was raised spending a year on their by an appeal to University of Michigan waiting list. In exchange for Business School alumni in the Washtenaw 200 equity hours of work County area, whose generous response on the house, she received a yielded $15,000. low interest loan enabling Another major boost to the fundraising her to buy it. Under the Habitat plan, she MBA student Elizabeth was provided by Detroit Edison, which will make payments on the new home over Solomon, who worked the next 30 years, but the home is actually on the auction of the donated the contents of a former employee contents of Detroit training and management center to the more affordable than the apartment she Edison's former Man­ effort. An auction of the contents of previously occupied. Her three children, agement Development Vivienne Farm in Ann Arbor (which was sold Alicia, Tamika, and Richard, range in age Center, poses by the from 7 to 17 and are thrilled about their sign that used to hang by Detroit Edison and will be demolished for right outside the Cen­ the construction of a 180-bed nursing and new home. ter. The auction raised rehabilitation center), was held in October. Speaking at the dedication of the house, $10,000, and proceeds Items auctioned off included furniture, Dean White congratulated Monique and were donated by De­ troit Edison to the commercial cooking equipment, kitchen briefly discussed the Global Citizenship Business School's utensils, linens, appliances and a huge cedar program. "The idea was a simple one," he Habitat for Humanity chest of old books. explained, "and that was to say to our house project. One student told Dividend that, as part of students, through what we did the very first the work of preparing for the auction, she week they arrived, that in addition to was getting ready to throw out 30 mops. But coming to the School to get education to the auctioneer (Ron Gallagher from Mon­ prepare themselves to be successful in roe, Mich., who was donating his services) business, we also wanted to remind them said "No, no, no, I can SELL those." He also that people of exceptional privilege also sold 40 baker's racks, lawn furniture, lamps have a special and exceptional responsibility and dishes. Total proceeds from the auction, to the communities where they live. This all of which were donated to the Habitat house is physical testimony to the good will House project, came to $10,000. of our students and their picking up on the All of the speakers at the dedication spirit of global citizenship." ceremonies heaped praise on the Thomas Monique wrapped up the celebration by family, the UMBS students, and the other thanking the people who helped her realize local volunteers who worked together to her dream. She thanked the people from build the house. "A whole coterie of people the B-School and Habitat for Humanity, from Ypsilanti and Ann Arbor, people from 'who are out doing things in the community all different income levels, from all different and gathering stuff to make dreams come races, from all different ages, have worked true for people like me." • on this house," said Margaret Leary, presi­ dent of Habitat for Humanity of Huron {Dividend is grateful to MBA students Valley, "and it really truly represents a Michael Krivan and Laurie Leonard, whose community effort." "There's a lot of hard stories about the Habitat for Humanity work in this house," said Construction project in the Monroe Street Journal were Manager Brad Levy. "It was cold, it was rainy, important sources for this article.)

Dividend / 15 Business School Launches Daewoo Executive Program

tains more than one hundred offices orty high-potential manag­ scattered across the globe, graduates ers from the Daewoo group Training the Bosses of the Daewoo Global MBA and are learning a lot in their Global Executive programs will studies at the University of strengthen UMBS' international FMichigan Business School, where Will Facilitate recognition and add to Michigan's they are now in their second year of overseas alumni network. MBA studies. But what will be the the Adoption situation when they return to Korea? "Within the corporate world, it is How can their "re-entry" be eased? of New Knowledge unheard of to take 30 top executives And is there any way to ensure that away from the company for three their new ways of thinking will be months ... If other companies adopted within the company? attempted this, the executives would communicate better since the not want to leave," Kim explained. Finance Professor E. Han Kim executives would understand the "But Daewoo employees understand and Chairman Woo-Choong Kim of concepts supporting the changes." the role of the Global MBA program. the Daewoo Group came up with a The new executive education They see that it symbolizes the simple solution to this complex program, designed by Kim with growth, continuing globalization, question. They proposed inaugurat­ input from Daewoo, consists of two and future of the company; they ing a Daewoo Executive Program segments. The first, a three-month realize that these students are the aimed at the bosses of the new MBAs. part-time preparatory course, will be chosen few who will eventually lead Such a program would draw heavily taught in Daewoo's training center the company." This symbolism is not on the same faculty who teach the in Korea and will emphasize lan­ lost on the firm's top executives. As Daewoo MBA students, and would guage skills and basic business the supervisors of the MBA candi­ offer a condensed version of the concepts. With their language dates, they realize that they too need education the MBA students are training complete, the Daewoo to update their skills and knowledge. getting. It would give returning executives will travel to Ann Arbor "Chairman Kim realizes that man­ MBAs an ally who is also their boss, for the second segment, a super- agement must keep pace. He sees and thus would make change easier condensed version of the MBA this program as a long-term invest­ to enact. Students in the Daewoo program. This condensed version of ment in human capital." Executive Program would be at the the core will be taught during a director level, representing a major­ three-month period from late May, ity of the 25 companies that com­ nterest in establishing the 1996, through early August. At the prise the Daewoo Group. An agree­ Daewoo MBA program came end, the executives will receive a ment between Daewoo and the from Chairman Kim, who is certificate of completion. Business School, launching the new a member of the Business As he develops the program, Kim School'I s Visiting Committee. After executive program in the summer of 1996, was signed in November, 1995. looks forward to faculty involvement seeing a presentation on the Cathay in teaching the Daewoo executives. Pacific distance learning initiative, "It is always easier to communi­ "Faculty members emphasize to he inquired about the possibility of a cate and to make change when the students that they should think similar program for Daewoo's boss understands where the staff is globally. [This program] is an employees. Professor Kim, who is coming from," commented Professor opportunity for the faculty to set a well known in financial circles across Kim, who has led the effort to good example of globalization." the world, was involved in all aspects expand the Global MBA into Korea. Other advantages of the program, of negotiation, and his familiarity "By teaching their bosses — not the both for faculty and for UMBS, with Korea and Daewoo allowed the details — but the underlying con­ include worldwide recognition and program to be established within cepts, we thought we could help the strengthening the UMBS-Daewoo seven months. new MBAs. They would be able to relationship. Since Daewoo main­ Once the Daewoo chairman

16 /WINTER 1996 decided on his plan of action, however, he faced the challenge of convinc­ ing the rest of his organ­ ization that such a bold move was necessary. "Daewoo ranks 36 in the world in size," com­ mented Professor Kim. "It consists of many companies under the umbrella of the Daewoo Group, of which Woo- Choong Kim is the founder and chairman. He needed to convince the presidents of all the companies to send their brightest to school for 16 months." On the one hand, the presidents wanted their Meeting to discuss the new Daewoo Executive Program are (left to right) Oh-Taek Kwon, managing best managers to become director of the Daewoo group; Hae-Yohng Johng, president of the Daewoo Management Development better educated. But they Center; George Siedel, associate dean of executive education and professor of law; E. Han Kim, profes­ sor of finance who has led the effort to expand the global MBA into Korea; and Dean B. Joseph White. also did not want to be without their brightest, most able and most active for 16 The program began in April 1995, potential managers but also to have a months. Other issues that needed to when selected Daewoo employees direct and positive impact on their be resolved included how these top enrolled in intensive versions of the companies. We don't know, right managers would be nominated by MBA core classes which were built now, whether we are achieving this, each of the operating companies, around a five-week module, requir­ because we do not track our stu­ whether it was appropriate to ing four hours of class time per day dents," he explains. distinguish these employees from per course. Approximately 30% of The two Daewoo programs will others at Daewoo, and how the costs the student-instructor contact hours help the Business School measure its of the program would be covered. was through distance learning performance by evaluating the "Chairman Kim was able to technology, including interactive impact the Michigan-trained execu­ convince the presidents that, in the teleconferencing. Professors in Ann tives and MBAs have on Daewoo. long run, the program was good for Arbor broadcast their courses into "Traditionally, our MBAs are spread the company," stated Professor Kim. Daewoo's training center, and com­ throughout the world in different Among the benefits to Daewoo bined that with visits to Korea to companies, so it is difficult to see the delineated by its chairman were the conduct on-site classes. impact that they have on their increased investment in human After having finished a majority of respective firms," Kim commented. capital, the better perception of the their core requirements, participat­ The two Daewoo programs, however, firm for recruiting purposes, and the ing Daewoo employees arrived in should facilitate measuring that provision of a goal to help motivate Ann Arbor at the end of August, impact. "We will get to see a concen­ younger employees. 1995 for two semesters, during which trated impact. And it is a little scary As a link in the Michigan Global they are taking electives and remain­ because the impact will be so con­ MBA program, the agreement with ing core courses. As a capstone to centrated," Kim mused. "Although I Daewoo established a curriculum their education, the employees will believe that we are teaching the right similar to the one offered to Cathay then return to Daewoo to complete a material, it is foolish to say that Pacific managers. It required the MAP project. everything we teach is right. [These same number of contact hours as By looking at the Daewoo pro­ programs] will help us evaluate our the standard MBA program, but was grams as an experiment, Professor performance." • conducted over 16 months. During Kim believes that the results will help the distance learning part of the to improve the School's other {Dividend is grateful to Nicole DuPont of the program, students live at Daewoo's programs. "We are attempting to Monroe Street Journal, who made substantial training center outside Seoul. train students not only to be good contributions to this article.)

Dividend / 17 PROFESSOR BERNARD

embers of the Business School community were shocked by the sudden death Nov. 14 of accounting professor Vic Bernard, who suffered Mcardiac arrest after a midday run, and never regained consciousness. He was 42 years old. Bernard, who was the Price Waterhouse Professor of Accounting and also director of the Paton Accounting Center, was a highly influential accounting scholar as well as a beloved teacher. "Vic Bernard was the epitome of scholarly relevance," said Eugene Imhoff, professor of accounting. "He had the unusual ability to do creative path-breaking research, and at the same time was able to convey its practical relevance to students and people in the business world. He was the most effective m scholar I have known at bridging the 'gap' between academe and the real world of business. "To illustrate this rare and important characteristic, Vic's recent research stream, which deals with the role of accounting information in determining the value of a business, appears in both his recent schol­ arly journal publications and working papers as well as his recently published textbook, Business Analysis and Valuation, co-authored been called twice to testify before Congress with Krishna Palepu (Harvard) and Paul on that subject. He was co-author, with Healy (MIT). Academic researchers, audi­ fellow Michigan faculty member Roger tors, and practitioners interested in valua­ Kormendi, of Crisis Resolution in the Thrift tion from all over the world were continu­ Industry. Another major research stream, ously calling Vic about his work and his which he conducted primarily with Professor thoughts. I know of no other scholar whose Jacob Thomas of Columbia University, ongoing research agenda has been received documents a strong challenge to the notion with such enthusiasm in both the academic of stock market efficiency. The two profes­ and business communities at the same time." sors found that stock prices systematically Accurate information on the worth of a underreact to earnings news; that is, the company is vital to investors and business market is slow to reflect that news in stock managers, and Professor Bernard's work prices. This research has been widely cited earned significant notice in both the aca­ on both Wall Street and in academic circles. demic and business communities. Bernard, who joined the UMBS faculty in Considered a leading authority on the 1982 and became a full professor with problems of the savings and loan industry in tenure six years later, twice received the the early part of this decade, Bernard had AICPA/American Accounting Association's

18 /WINTER 1996 DIES SUDDENLY AT 42

students in his class. A lot of people put a lot of work into being prepared for Vic's class, for the return was so great — threefold or fourfold." Bernard was the first winner of the School's Leadership in Teaching Award, established by the faculty in 1994 to recognize excellence in the classroom as well as important multi-year contributions to teaching. Among other things, he developed a new MBA elective — Financial Statements Analysis and the Role of Information in the Capital Markets — that over the years grew to be a highly popular elective course. His sections were always oversubscribed by students. As one colleague put it, "He was the role model in accounting for both junior faculty and Ph.D. students." Professor Bernard earned other accolades for his teaching, including being listed among the School's six most outstanding faculty members in Business Week magazine's guide­ book, The Best Business Schools. Professor Bernard was devoted to his two children, Marie, 14, and Lewis, 11, and placed his duties as a Cub Scout leader and coach of a neighborhood girls' softball team among his highest priorities and most important roles. He counted his scaling of Mount Kilimanjaro award for Notable Contributions to Account­ among his proudest accomplishments, in a life ing Literature. He was one of only ten filled with honors and achievement. people in the past 30 years to receive the "Vic Bernard was a friendly, kind, gentle, award more than once. caring person," said a professional colleague. In addition to earning national notice "He never considered his achievements to be and acclaim for his influential research, unusual, and never tried to draw attention to Professor Bernard won the devotion of his his accomplishments. His open, caring nature students. "To those who think accounting is allowed all of us to forget how fortunate we a dull subject, I would say 'You never took a were to have him in our midst. As an educator class from Vic Bernard,'" said one grieving and a scholar, I know of no equal to Vic student. And a Ph.D. student added, "He Bernard. He was truly and simply the best at believed in us and expected so much for us what he did." and from us. Wanting to make Vic proud Bernard's colleagues and friends at the motivated so many of us." An MBA student University of Michigan Business School have commented, "First, he wanted us to call him established the Bernard Children Education Vic, not Professor Bernard. He created an Trust Fund. Contributions may be made care environment where no one was afraid of Nancy E. Hooper at NBD Bank, P.O. Box to speak, even though there were lots of 8601, Ann Arbor, Michigan 48107-8601. •

Dividend / 19 A Place for Lucrative Introductions Money Looking for a Place to Go Meets Innovative Companies at the Annual Growth Capital Symposium

oney is looking for a place to go. I start out every morning looking for the "M next Apple Computer," said Alan Patricof, founder of Patricof & Co. Ventures, a venture capital investment company currently managing over $2 billion in the U.S. and internationally. He /as speaking to other venture capitalists ind entrepreneurs gathered at the 16th annual Growth Capital Symposium in Ann Arbor, where he received the 1995 Award for Excellence in Growth Capital Investment. Finding capital to finance expansion and actualize ideas is a primary concern of innovative small companies. At the same time, discovering high potential young companies with promising products is the major interest of growth capital investors. *"***» V ^ The Growth Capital Symposium, which »*«£»** brings the two groups together in Ann Arbor every year, is the brainchild of David Brophy, associate professor of finance and director of the Office for the Study of Private Equity Finance at the University of Michigan Business School.

20 /WINTER 1996 IS *J I Michigan Governor John M. Engler (left), who was a featured speaker at the 16th Annual Growth Capital Symposium, also spent time at the Symposium visiting company exhibits. Here Aaron Howard, president and CEO of Media Station, demonstrates the company's newest CD-ROM product to the governor.

As a first step for the Symposium, the Two awards — one for each side of the Office for the Study of Private Equity matchmaking process — are given at the Finance identifies and screens firms in need Symposium: of capital, selecting those with highest potential. Candidates may be early-stage • THE AWARD FOR EXCELLENCE IN firms needing capital to extend production ENTREPRENEURSHIP went this year to Dr. and marketing; established firms seeking John Psarouthakis, who formed JP Indus­ capital to expand current operations or to tries in Ann Arbor in 1980. Within 10 introduce more products and services; and years JPI became a global, publicly traded, special situations — later-stage firms looking Fortune 500 company and was sold to a for professional investors, a public offering, British firm, T&N pic in 1990. Shortly or a strategic partner, either domestic or thereafter, Psarouthakis formed JPE, Inc., foreign. At the Symposium, each firm makes also headquartered in Ann Arbor, a com­ a 12-minute presentation to the assembled pany which has acquired and operates investors. Later in the day the companies automotive and truck component suppliers run exhibits, and their top managers are and which has an annual revenue rate of available to meet with investors. over $200 million. He is a role model for This year, Michigan Governor John M. emerging entrepreneurs. Engler spoke to the group about the state's role in advancing future business growth. He • THE AWARD FOR EXCELLENCE IN has focused the attention of both public and GROWTH CAPITAL INVESTMENT was given private sectors in Michigan on the improve­ to Alan J. Patricof, who currently serves as ment of the State's business climate, with CEO of Patricof & Co. Ventures, which special emphasis on innovation and technol­ currently manages over $2 billion in the U.S. ogy transfer. and abroad. He served as chairman of the

Dividend / 21 M Professor David Brophy (left), founder of the Growth Capital Symposium and Director of the Office for the Study of Pri­ vate Equity Finance at the University of Michigan Busi­ W^~ TI ness School, is pictured with r H zz ^B ^H ' ^JCV^^L • Dr. John Psarouthakis, winner Rt~v • ~ ffl of the 1995 Award for Excel­ lence in Entrepreneurship that M ' — ll 1 was presented at the 16th An­ ?H K ^Ji nual Growth Capital Sympo­ sium. Dr. Psarouthakis formed JP Industries in Ann Arbor in 1980. Within 10 years JPI be­ L^A 4••".•rC*. JJM came a global, publicly traded, Fortune 500 company and was sold to a British firm, ^V ^^^^H T&N pic in 1990. Shortly there­ after, Psarouthakis formed JPE, Inc., also headquartered in Ann Arbor, a company which has acquired and oper­ ates automotive and truck component suppliers and which has an annual revenue rate of over $200 million. He is a role model for emerging entrepreneurs.

1995 White House Conference on Small Business and has been a driving force in bringing consideration of the needs of small business and entrepreneurship to the atten­ tion of public policy makers. He has been involved throughout his career in support of education and in public policy issues sur­ rounding technology transfer and innovation. In its 15 year history, the Symposium has helped over 350 growing companies raise nearly $200 million in growth capital. In 1994, it expanded to Europe, where a similar annual Symposium is held for emerging companies in Eastern Europe. Besides heading the Office for the Study of Private Equity Finance, Professor Brophy teaches courses in venture capital, corporate finance and banking at the University of Michigan Business School. He has twice won the National Association of Small Business Alan Patricof, founder and CEO of Patricof & Co. A Investment Companies' Research Award, and Ventures, a venture capital investment company has been heading a nationwide research team currently managing over $2 billion in the U.S. and internationally, received the 1995 Award for assessing the role and needs of small business Excellence in Growth Capital Investment at the and entrepreneurship in the U.S. for the 16th Annual Growth Capital Symposium. He White House Conference on Small Business. served as chairman of the 1995 White House Con­ He is also a consultant to the Michigan task ference on Small Business and has been a driving force in bringing consideration of the needs of force on venture capital. • small business and entrepreneurship to the attention of public policy makers. He has been involved throughout his career in support of edu­ The Office for the Study of Private Equity cation and in public policy issues surrounding Finance has a home page on the World Wide Web technology transfer and innovation. http://www.umich.edu/~ospef/office.html

22 /WINTER 1996 Here is a sampling of some of the 15 companies that participated in this year's Growth Capital Symposium:

I THREEFOLD SENSORS, INC. - Early-stage Michi­ saving utility in bone marrow transplanta­ gan medical diagnostic products company tion, other cancer therapies, and stem cell building a product which can measure gene therapy. female reproductive hormone levels in urine. The device will utilize technology BEARTOOTH, INC. - Early-stage company related to laser optics, fiber optics, chemi­ which is producing and marketing fruit- cally selective biological molecules and flavored beer on a regional market basis. fluorescence. The initial device will serve as The Company is a category leader within a a platform for all future products since the small but rapidly growing craft brewing fiber-optic sensor will have a wide applica­ segment of the U.S. brewing industry. This tion to many hormones, drugs, infectious includes brewpubs, micro-breweries, re­ agents (AIDS) and metabolites. gional specialty brewers, and the contract brewers such as the Company. MATRIGEN - Michigan Biotechnology firm developing a plasmid based bone-healing MEDIA STATION - Located in Ann Arbor, system for severe bone injuries. Matrigen Media Station creates, produces and markets intends to develop and commercialize compelling interactive technolosrv originating at the University of family entertainment Michigan Medical School that leads to tissue for kids and their growth and regeneration through the use of parents. Media DNA products. Station distin­ guishes itself NITRATE EUMINATION, INC. - Michigan (UP) through its unique company whose focus is on the development blend of artistic Ch,ice»^ of enzyme-based products for the detection and technical acemenf and remediation of compounds of environ­ creativity, as well mental concern, with special emphasis on a as its integrated widespread problem: contamination of water multimedia Ch'efE^eOff by excess nitrate. Company strategy will be to production icer use licensing and strategic partnering for capabilities. commercialization and marketing of its products.

SOFTWARE, STEEPLECHASE SOFTWARE - Michigan Software /iVc company founded in early 1993 to simplify ru factory automation. The company released Box 3049 its first product, the Visual Logic Controller (VLC), in December, 1994. The VLC is a Fa Windows-based software that allows a system *3l3/995_7^ built around a single Personal Computer (PC) to replace PLC-based systems.

AASTROM BIOSCIENCES, INC. - Michigan developmental-stage medical products company which currently employs over 40 people. The company has patented technol­ ogy, which has been implemented in the Automated Aaastrom Cell Production c« System, for the ex vivo growth and expansion

of human stem and hematopoietic progeni­ L4« tor cells and other tissues. These powerful cells have the ability to be used therapeuti­ cally to either restore or repair damaged human tissue, with immediate cost and life- Dividend / 23 •^ Two major articles in the December 11, 1995 issue of Fortune magazine describe the American Customer Satisfaction Index in depth and discuss its implica­ tions for the American economy. The index was origi­ nated at the University of Michigan Business School. Customer Satisfaction: Are U.S. Companies Moving in the Wrong Direction? A New National Scorecard is Flashing a Warning: Overall, U.S. Companies Lost Points Last Year

This new national score card of It is based on telephone interviews customer satisfaction is making the with over 50,000 customers annually, voices of customers more powerful who are located through random than ever before, translating their selection. The Index includes custom­ hanl. to the A™ opinions into hard numbers so that ers of 200 companies (selected on the Customer Satisfaction Index customer satisfaction is as tangible as basis of market share), who are (ACSI), which originated at a stock price or an earnings report. surveyed to determine their assess­ Tthe University of Michigan Business In fact, indications are that the ment of the quality of goods and School, customer satisfaction is no American Customer Satisfaction services with which they have had longer just a warm and fuzzy intan­ Index can actually predict company actual experience, and to determine gible, but something that can be earnings, showing that making their intention to repurchase. measured and entered onto the customers happy translates into Figures released this fall provide balance sheet. But the new national money in the bank. the first year-to-year comparison of the score card of customer satisfaction is The ACSI was launched in quality of economic output available flashing a warning: overall, U.S. October, 1994 under the joint in the U.S. and mark the first time companies lost points last year, when sponsorship of the University of quality has been tracked across compared with the year before. Michigan Business School and the industries and sectors in the American A premise of the rating is that, at American Society for Quality Con­ economy. Only the manufacturing/ the micro level of the firm, custom­ trol, a professional association based durables sector of the economy has ers are an economic asset, and ought in Milwaukee. It examines 35 shown any improvement over the past to be treated as such. At the macro industries representing almost 40% year. That sector, the data for which level, ACSI provides a vital piece of of GDP and encompasses seven was updated in August, showed a 0.8% information on the health of the sectors of the economy — manufac­ improvement, with a score of 81.2 on overall economy. So far, evidence turing nondurables; manufacturing the ACSI's 100-point scale. (One or suggests that this new measure is in durables; transportation, communi­ two sectors are updated each quarter, sync with, or even ahead of, the cations and utilities; retail; public with a new national Index resulting Index of Leading Indicators (see administration and government; from accumulation of that data.) table on page 25.) services; and finance and insurance. Overall, the economy's satisfaction

24 /WINTER 1996 performance showed a 1.1 percent direction is not encouraging." The that productivity, on its own, is an decline, going to 73.7, from a score article goes on to say, "The ACSI insufficient measure of company of 74.5 at this time last year. The results suggest at least three wrong performance. The ACSI updates how biggest declines in the past year were turns business may have made in its success is measured, putting custom­ in the retail sector, which fell 2.8 drive to improve customer satisfac­ ers front and center, and reminds percent from a score of 75.7 to 73.6, tion: It has viewed customer service companies that letting customer and in the public administration/ as a cost rather than an investment; satisfaction slip can be costly. government sector, which experi­ it has been insufficiently aware of "Keeping customers is a great way enced a 3.7 percent drop, from a customers' rising expectations; and to grow," says Fortune, reminding its 64.3 to a 61.9 score. it has not yet figured out how to readers that studies show that the According to Professor of Market­ define customer satisfaction in a way price of acquiring new customers is ing Claes Fornell, the economist that links it to financial results." five times greater than the cost of who designed the index, ACSI keeping old ones. The article should be considered an economic continues, "If you want your custom­ indicator at the macro level, like ustomer service has gotten a ers to stay longer, you should find indicators of price and productivity. good deal of attention in out what specific factors — faster The methodology developed by recent years, but the ACSI delivery? electronic billing and C payment? better trained personnel? Professor Fornell for studying suggests many companies are shying customer satisfaction has been in use away from a real commitment to it. — make the most difference in your for seven years in Sweden, where the It is tempting for companies to retention rate, and how much that Swedish Customer Satisfaction forget about customer satisfaction in difference is worth. Almost by Barometer is proving to be a leading favor of improving productivity — definition, this means that measur­ economic indicator. because saving some money by ing and managing customer satisfac­ Two major articles in the Decem­ putting fewer clerks in the stores, for tion cannot be the private preserve ber 11, 1995 Fortune magazine example, seems an easy way to boost of the market research department. describe the index in depth and profits. But if increasing productivity It's the job of the whole business. It discuss its implications for the means things like using fewer clerks, is the whole business." American economy. Commenting a productivity hike is almost guaran­ on the decline, Fortune notes, teed to reduce customer service. (A complete rundown on how the "Though the overall decline is small, There is a good deal of evidence Index was compiled, and the scores this is not an index that one would suggesting that is exactly what has by company in each product cat­ expect to shift abruptly, and the fact happened in retail and a number of egory can be found in the Dec. 11 that it has moved in the wrong other industries. The trouble is issue of Fortune.) •

104 75

103 74.5

102 H02.2 74 101

^OOr4-i 73.5 100

99 73 Q3 Q4 Q2 Q3 Q4 1994 1995

ACSI ILI Dividend / 25 Classes of '70, '85, '90 and '94 during the Friday activities. Saturday's events included business Alumni Have a Great Reunion Weekend school tours led by students, a "State of the School" event which gave an update "It's incredible what's happened of where the School is heading now Activities around this business school in the past and what challenges it faces, a tailgate 10 years, much less the last 25," mused lunch in the Business School portico, one returning alumnus, and certainly the Michigan-Minnesota football game, members of the and a reception and informal dinner. classes of 1970 Also on the agenda were receptions and 1985, if they and luncheon get-togethers where had not been on people were able to do a lot of informal campus since socializing with classmates. they graduated, In 1994, the Business School began a found many new reunion tradition by focusing on changes to three classes — including the 25th, surprise them 10th and 5th reunion year. This year, when they the MBA 1994 (first year) reunion class returned for was added to the agenda, and it is our Reunion Week­ goal to add reunions for the 15th and end on October 20th year classes as well. | 27 and 28. (For The Classes of 1970 and 1985 also | more about implemented Reunion Gift Campaigns, 3 changes seen chaired by Dick Ainsworth for the MBA from the view­ class of 1970 and by David Bryan and Reunion Weekend - Michael point of a returning 1970 graduate, see Matt Anctil for the class of 1985. Their Vendetti, Michael D'Angotino and Rick Tauber, all MBAs '90. page 11.) efforts were highly successful, and a Among other treats planned for the check for $145,000 from the class of alumni, an outstanding one was the 1970 and for $55,000 from the class of opportunity to attend executive skills 1985 was presented to Dean White. workshops, which have been highly Both class gifts will be directed to the popular with MBA students. They run annual fund, which provides vital between two to four hours, and func­ support not only for day-to-day needs of tion for MBA students as mini-executive the School, but also provides vital education courses. The emphasis is on undesignated dollars that allow the action learning and skill building. School to seize important opportunities Reunion Weekend - Members Alumni were able to attend two differ­ when they arise. of the class of 1970 pictured ent workshops — one on here are (left to right) Dick effective communication, and Ainsworth, Ron Sladky, Jim Gillespie and Bob Dailey. one on time management,

Reunion Weekend - Tenth reunion classmates are (left to right) George Knoll, Liebe Gadinsky and Randy Green, all MBAs '85.

26 /WINTER 1996 Reunion Weekend - Reunion Weekend - Pictured left to right are Pictured at their members of the MBA 25th reunion are class of '85 Matt Anctil (left to right) (with daughter Katie), Richard Rogel, BBA Mark Kielb, Matt Rohr and '70, John Shuey, Marilyn Warner. Roberto de Ocampo and Santosh Mehra, all MBAs '70. Reunion Weekend - Members of the MBA '90 class at their 5th reunion (left to right) Jim Peck, Marina Shoemaker, Helen Carter, Mary Moore, Mike Shingler and Susan Land.

Have You Ordere Your 1996 Alumni Directory?

The 1996 Alumni Directory of the University of To order, please contact: Michigan Business School is due out in June. While Harris Publishing Company produces a fixed Customer Service quantity of 1996 Business School Alumni Directo­ Department ries, they still have a small quantity available for Bernard C. Harris order. Please contact Customer Service at the Publishing Co., Inc. Bernard C. Harris Publishing Company, if you'd like to order a copy of the 1996 director)'. Elizabeth Building Orders received after April 6 will be filled on a 16 Koger Center, Suite 103 first come, first served basis. The cost is $39.95 plus Norfolk, VA 23502 $5.95 shipping and handling. Telephone - (800) 877-6554

Dividend / 27 What's New With interviews with Asian and American Alumni businesspeople in China, Singapore the Alumni Clubs? and Hong Kong. Lim, who was born in Singapore, Activities A reception at the Singapore Em­ directs the Southeast Asia Business bassy in Washington, D.C; a panel Program at the University of Michigan discussion between entrepreneurs in Business School and is a valued teacher Cleveland; and a workshop on Career and mentor for many business school Strategies for the 1990s in New York students, particularly those who are City were all part working toward a dual degree MBA/ of alumni club MA program in Asian studies. The activities in the event at the Singapore Embassy was past months. planned by Ed Karls, MBA '94; Bill Below are some of Taylor, MBA '77; and Mike Weber, the highlights of MBA'91. those meetings. • CLEVELAND • JAPAN The first of an annual panel on entre- Takeo Suzuki, preneurship took place in November in MBA '76, presi­ Cleveland, sponsored by the Business dent of the School Committee of the U of M Club University of of Cleveland. Warren Anderson, MA Michigan Business '77, CEO of Anderson-Dubose, was the School Club of keynote speaker. He was joined by two Japan, hosted a other panelists: Ed Gonzalez, BA '76, reception at the CEO of Ferrous Metal Processing; and Shimizudani Club David Bauders, MBA '90, President of in Tokyo in Strategic Pricing Associates. February. Guests of Another successful Cleveland event honor were Dean took place in the fall, when Joseph B.Joseph White Keithley, MBA '76, chairman, president and E. Han Kim, and CEO of Keithley Instruments Inc., Linda Lim, associate professor of business administration hosted a tour of his company's Solon, professor of international Ohio, facility. Following the tour, he led business and director of the and director of the Mitsui Life Financial Southeast Asia Business Research Center. Both alumni and a discussion on using C.K. Prahalad's Program at the Business prospective students attended the strategic concepts to rekindle profitable School, is pictured with S.R. reception. sales growth. Prahalad, who is renowned Nathan, ambassador to the U.S. from Singapore, at the for his thinking in coroprate strategy, Singapore Embassy in • WASHINGTON, D.C. holds the Harvey C. Fruehauf Professor­ Washington, D.C., where she ship of Business Administration at the spoke at a meeting of the University of Michigan Linda Lim, associate professor of Business School. Business School Society of international business, spoke on "East Both of these successful events were Washington, D.C. vs.West in International Business" at the organized by Deanna Bremer, MBA '92; Singapore Embassy under the sponsor­ Bob Bailey, MBA '78; John McCarty, ship of the University of Michigan MBA '82; Steve Georgi, MBA '92; and Business School Society of Washington, Paul Campbell, MBA '54. D.C. and the U of M Club of Washing­ ton, D.C. Professor Lim described the • SAN FRANCISCO differences in perspectives between American and Asian businesspeople The newly formed University of Michi­ and told many anecdotes from her gan Business School Club of Northern

28 /WINTER 1996 California held its kickoff event in Diana Langley, BBA 75 January with a reception for Dean B. Joseph White. Sanford Robertson, Wins the 1995 BBA '53, chairman, Robertson, Entrepreneur Award Stephens & Co., welcomed the Dean to the Club's first meeting. About 90 Business School alumni and students Diana Starr Langley, attended the event, and heard Dean BBA '75, president and White speak about the changing CEO of Dioptics Medical nature of business school education Products, Inc., received and how the Michigan Business the 1995 Entrepreneur School is adapting to those changes. Award from the Michi­ The reception was organized by Eva gan Business School Chang, MBA '93; Jodi Klein, MBA '93; Alumni Society Board of Michelle Lee, MBA '94; Penny Smout, Governors October 3. MBA '93; Amreen Madhani, MBA '93; The award is given and Rich Stanton, MBA '91. annually to recognize and honor an individual who has established and • NEW YORK developed a highly successful business Paul Bernard, MBA '81, President of enterprise. Paul Bernard & Associates, led a /f . - Ms. Langley is the workshop on career strategies for the Diana Starr Langley, BBA '75, shows founder and owner of off the 1995 Entrepreneur Award 1990's at a fall meeting of the Business Dioptics, a multimillion given to her by the Business School's School Society of the U of M Club of Alumni Society Board of Governors. dollar California corpo­ New York. Bernard discussed tools ration which has been a pioneer in the that Michigan alumni and alumnae development of new products related can use to match their interests, skills to ophthalmology. Her company and personality type with a career developed the first prescription lens path. Paul Bernard is a career and with ultraviolet filtering and the first outplacement counselor with more intraocular lens (after cataract surgery) than 20 years of counseling, human that filters ultraviolet light, as well as resource management, financial producing SolarShield® sunglasses, a management and marketing experi­ UV filtering sun goggle. Her mother, ence. He has held senior financial and Lee, BBA '49 works for the company, human resource positions in both the as well as a sister, Jan, BBA '77. insurance and publishing industries and has counseled hundreds of The award was presented in con­ men and women seeking to change junction with a Dean's Seminar jobs or to find a new career path for program, at which Langley gave a half- themselves. hour presentation, followed by a question and answer period with The New York Club also jointly students. During Langley's talk, she hosted an "All MBA" cocktail party in discussed risk-taking ("I take different October, which was attended by risks now than I did when I was Business School alumni from the younger"); success ("the definition University of Michigan, Columbia, changes as you age"); and working NYU, Wharton, Harvard, Yale, MIT, long hours ("you don't have to have University of Chicago, London your sleeves rolled up all the time; you Business School, Cornell, Tuck, UCLA could be sitting on a plane thinking"). and Stanford. Both of these successful She also told the students wryly that it events were planned by Scott Stieler, took her 20 years to become "an MBA '92 and Barry Asato, MBA '92. overnight success." MONG OURSELVES

Prof. Anjan Thakor, Leading Scholar in Finance, Is Appointed Frey Professor of Banking and Finance

njan Thakor, a leading ship also makes Michigan a A scholar in the finance particularly appropriate field, has been appointed to place for us to establish a the Edward J. Frey Profes­ professorship in my father's sorship in Banking and name." Finance, and will join the "This chair makes a ma­ University of Michigan Busi­ jor contribution to building ness School faculty in Fall, Michigan's expertise in a 1996. The new professorship vital area," said Dean B. was established with a $1.2 Joseph White. "Professor million grant from the Frey Thakor brings precisely the Foundation. kind of accomplishment in Professor Thakor is cur­ research and teaching that rently chairman of the fi­ was envisioned when the nance department at Indi­ chair was established." ana University's School of Besides his important Business, where he is also research contributions, Pro­ the NBD Professor of Fi­ fessor Thakor is also an nance. He is regarded as an outstanding and commit­ expert in banking policy, ted teacher. He currently regulation, and strategy and teaches both MBA and PhD has also emerged as a lead­ students, and has, over the ing thinker in the area years, supervised numerous known as financial interme­ doctoral dissertations. In Professor Anjan Thakor, the new Frey Professor of Banking diation — ways of linking and Finance, will join the B-School faculty in fall, 1996. recent years, he has also sources of capital with busi­ become active in executive nesses and individuals in The chair Professor "The University of Michi­ education, making further need of financing. He is co- Thakor will hold commem­ gan played a large role in contributions to the prac­ editor of the Journal of Finan­ orates the distinguished my father's business career, tice of banking and finance cial Intermediation, which is career of the late Edward J. and his affection for the through his teaching on highly influential on theory Frey, Sr., who for 31 years university was ever-present," that front, and effectively and practice in the field, and was chief executive officer of said David Frey, vice chair­ drawing on his executive associate editor of four other Union National Bank (now man and trustee of the Frey education experience academic journals. He also NBD) and also founded the Foundation. "We are espe­ both to enrich his work recently co-authored a text­ Foremost Insurance Com­ cially delighted that this with MBA and PhD book on bank management pany in Grand Rapids. Mr. chair has enabled Michigan students and to generate entitled "Contemporary Fi­ Frey, a graduate of the Uni­ to attract one of the ideas for research. nancial Intermediation." He versity of Michigan, was country's leading scholars Professor Thakor did his has published over 50 ar­ known as an innovator in and teachers in banking undergraduate work at the ticles in leading academic banking and finance as well and finance, an industry my University of Baroda, India, journals in finance and eco­ as a community leader and father helped shape. The and received his MBA from nomics, and numerous other humanitarian. He founded Business School's unusual the Indian Institute of Man­ monographs and chapters in the Frey Foundation in commitment to teaching its agement and his PhD from books. 1974. students corporate citizen­ Northwestern University.

30/WINTER 1996 Company Based on New Plastic Injection Molding What Is the Process Wins 12th Annual Pryor Award Name of This Place Anyway? A new patented process for plastic injection molding When Keith Decie, direc­ is the basis for GCP Engi­ tor of communications for neering, a company the University of Michigan launched with a business Business School, made a and marketing plan written survey of how we identified by three evening MBA stu­ ourselves, he found about dents and one day MBA stu­ 15 different variations on dent, along with an outside our name. Since then, a adviser who is a graduate of policy has been instituted the evening MBA program. to use a single name — Their plan for the new com­ University of Michigan pany won the 12th annual Business School — in all Pryor Award, established forms of communication. with a $50,000 grant to the "The impact of the School from Millard H. School's many accomplish­ Pryor as a challenge to ments in building our overall "commit the entrepreneur­ and departmental reputation ial dreams of students to Winners of the 12th annual Pryor Award include (seated, left to right) evening MBA students Stephen Kile and Alicia is diminished considerably as paper." Nelson, and MBA day student Sev Maynard. Standing (right) is a result of the inconsistency The student team devel­ Mark Gresser, also an evening MBA student, and Chris Ring, of names we have been us­ oped the winning plan to MBA '93, who was not part of the team, but who served as a ing," said Decie. "When a provide a blueprint for the special consultant on the project. The four won for their busi­ ness and marketing plan for the launch and growth of a com­ research paper, a brochure, launch and growth of Gas pany that sells and licenses a new patented process for plastic a Wall Street Journal article, Counter Pressure Engineer­ injection molding. and the way the phone is ing Company, which now answered all identify us dif­ sells and licenses a process MBA student Sev Maynard. cluded: Herbert Amster, ferently, it is clear only to us for plastic injection molding The company is now in busi­ consultant to TriMas; James that each of these references called Gas Counter Pressure ness, founded by Milko Buhr, managing director, is to the same school." (GCP). This technology Guergov, who moved to the McDonald & Company Se­ "To build the School's enhances plastic part ap­ U.S. from Poland and who curities, Inc.; Ian R.N. Bund, reputation, it is essential that pearance by eliminating gas holds the patent for the pro­ president, White Pines cor­ we have a single consistently migration and sinks. It also cess. At the time of its incor­ poration and senior vice used name," said Dean B. increases the strength of poration in December, president and director of Joseph White. "'University of molded parts by as much as 1994, GCP Engineering was corporate finance, First of Michigan Business School' 30 percent, reduces finished capitalized by three private Michigan Corporation; Mary is clear about and capitalizes part weight by 10 percent, investors. Initial sales efforts Campbell, partner, Enter­ on our membership in the and shortens cycle times by are concentrating on the prise Development Fund; University, but also allows us 20 percent. The team points Detroit area automotive and Richard Rogel, CEO of to build a separate institu­ out that minor reductions in injection molders. Preferred Provider Organi­ tional identity, which is im­ weight and cycle time in the Business plans that com­ zation of Michigan. portant, given the compe­ injection molding industry pete for the Pryor Award The plans are judged on titiveness of management translate into massive cost are first evaluated by two their conceptual innova- education." savings. Thus, the GCP pro­ Ph.D. students who read the tiveness, clarity, and prac­ The School is now in the cess has enormous potential plans and choose finalists. ticality of marketing and process of revising busi­ in the $20 billion industry. The finalists then present production methods. The ness cards, letterheads and The winning student their idea for a strictly moni­ Pryor award competition other printed materials to team consisted of three tored 20 minutes to five is open to all undergrad­ insure that the name is used evening MBA students — judges who are venture capi­ uate or graduate students consistently. Stephen Kile, Alicia Nelson talists and entrepreneurs. who are registered during and Mark Gresser, and day This year, the judges in­ the academic year.

Dividend/ 31 9th Annual Real Estate Forum Considers Emerging Trends

panel of five real At the ninth annual Real Aestate professionals; a Estate Forum, real estate keynote address by Ken scholarships were pre­ sented to students by spon­ Himmel, developer of ma­ soring corporations. They jor multi-use urban com­ included: plexes; and presentation of real estate scholarships were all part of the ninth annual Real Estate Forum, held in November at the Business School. The two-day event also included a bus tour of various real estate sites, a panel presentation on revi­ talizing downtowns, a net­ working reception and lunch, and several concur­ rent workshops. Law student Christopher Robinson, whose scholar­ The five panel members, ship was presented by Gor­ all of whom were honored as Robert Larson of Taubman Realty (right), and Kenneth don Didier of Butzel Long; "Moguls of the Year" by Com­ Himmel, keynote speaker at the Real Estate Forum. Himmel has created a series of landmark mixed-use projects. mercial inc magazine, were described by the magazine's apartment communities, and in all types of mixed use publisher Bonnie Taube, as as a result there are good development. Himmel *\ "gutsy risk takers who have opportunities for renovating was introduced by Robert the vision and persistence to and upgrading moderately Larson, chairman of Taub­ turn yesterday's possibilities aged complexes. man Realty. into tomorrow's realities." Himmel has created a They included David • MASSIVE CHANGES IN RE­ series of landmark mixed- Johnson, chairman of Victor TAIL SALES of the past 10-15 use projects, including the International corporation; years are affecting commer­ $500 million Copley Place Q^; Jonathan Holtzman, chair­ cial real estate. More fac­ development in Back Bay, man of Village Green compa­ tory outlet malls will be Boston; the $350 million Urban studies student Tracy nies; Douglas Etkin, presi­ constructed close to major Phase I Reston Town Center Gao, whose scholarship was dent of Etkin Equities; metropolitan areas. in Reston, Virginia; and a presented by Brad Newman Harriet Saperstein, president 300,000-square foot develop­ of Comerica Bank; and of HP Devco; and Ronald • RE-USE AND REDEVELOP­ ment on North Michigan Weiser, CEO and chairman MENT of abandoned indus­ Avenue, Chicago. His career of McKinley Associates. trial sites will be an endur­ has included executive posi­ The panel identified sev­ ing trend, as the role of the tions with and joint-venture eral major themes in their real estate developer is be­ responsibility for projects discussion, which included: ing changed by the sensitiv­ with Cabot, Cabot and ity of an environmentally Forbes; Urban Investment • THE OUTMIGRATION conscious society. and Development Co.; FROM THE MIDWEST is be­ The keynote speaker, Ken Miller-Klutznick-Davis-Gray ginning to reverse. However, Himmel, began his presenta­ Co.; Mobil Oil Corporation; the supply of new housing tion by emphasizing that and, most recently, Thomas has not kept up with demand there are three key themes J. Klutznick Company and as lenders have yet to ac­ that tie his complexes to­ McDonald's Corporation. MBA student Marty Friedman, whose scholarship was pre­ knowledge the upswing in gether: "sports, entertain­ Next year's Real Estate sented by Joel Schwartz of demand. ment, and food and bever­ Forum will be held Nov. 14- Ford Motor Land. age." He emphasized that 16, the weekend of the Penn • MORE AND MORE AMERI­ entertainment will be an in­ State game in Ann Arbor. CANS are choosing to live in creasingly important theme Photos by Gregory Fox

32/WINTER 1996 Tauber Institute Hosts First Manufacturing Recruiting Forum Companies from all over America's manufacturing the country who are seeking industry into the future. highly qualified candidates Recruiters from 28 com­ in manufacturing, and stu­ panies and about 125 stu­ dents from top universities dents from 10 top participat­ who are seeking permanent ing universities converged positions in manufacturing, on Ann Arbor for the Fo­ had an opportunity to get rum, which began Nov. 30 together in Ann Arbor, No­ with a reception, during vember 30 and December 1 which participants could visit at the first annual Manufac­ companies' information turing Recruiting Forum. booths and also fill any re­ The Forum was hosted by maining interview slots. The the Joel D. Tauber Manufac­ Forum continued Dec. 1 turing Institute (TMI), which with interviews scheduled in Sloan Sponsored Seminar to succeeds the Michigan Joint advance by companies. The Manufacturing Initiative, in Forum provides students Consider Corporate Governance cooperation with the Na­ with the opportunity to in­ tional Coalition for Manufac­ terview in one location with A seminar to explore the purposes and accountabilities of the corporation in modern societies is being planned at the Busi­ turing Leadership (NEMC). companies from around the ness School under a grant from the Sloan Foundation. Pictured TMI was developed to meet country who are specifically here are members of the faculty committee working on the industry's need for a new interested in students em­ seminar. They include, from left, B. Joseph White, dean of the kind of graduate—one who barking on manufacturing- Business School; James Walsh, associate professor of organi­ zational behavior, human resource management, and corpo­ has an exceptional academic related careers. At the same rate strategy; Cindy Schipani, the Louis and Myrtle background, extensive pro­ time, it gives companies the Moskowitz research professor of business law; and Anant fessional experience, and opportunity to interview in Sundaram, visiting associate professor of international busi­ who can successfully inte­ one location students from ness. Not pictured is Professor Michael Bradley of Duke Uni­ versity, who is also a member of the committee. grate business and engineer­ top manufacturing programs ing perspectives to lead across the United States. Kresge Business Administration Library Celebrates Seventieth Birthday When the Business School Tappan street, where it was uuwui began in 1925 (located in located in what is now the £> Haven Hall), the Business student lounge. In 1984, the School Library had 170 vol­ new Kresge Business Admin­ umes on hand. Fees and ex­ istration Library and Com­ u penses for Michigan resi­ puting/Executive Education dents included a one-time Building was dedicated. The matriculation fee of $10.00 new library was built entirely and an annual tuition ex­ with private funds, including pense of $85.00 for men and a $2.5 million challenge $80.00 for women. Much has grant from the Kresge Foun­ changed in 70 years! A party dation of Troy, Michigan. to celebrate the Library's It provides 55,000 square 70th birthday was held in feet of space for open stack November, 1995, complete collections on three levels, foKivHPSip!] with a birthday cake. and seating capacity almost A party with birthday cake was held to celebrate the 70th birth­ In 1948, the Library three times that of the previ­ day of the Kresge Business Administration Library, which opened moved to the new Business ous facility, which remained in Haven Hall in 1925 with 170 volumes. Pictured here, left to right, are Nancy Karp, senior associate librarian; John Sterbenz, Administration building at almost unchanged from coordinator of technical operations for the library; Aline Soules, the corner of Monroe and 1948-1984. Kresge Library director; and George Siedel, associate dean.

Dividend/ 33 BT Gift to Support Significant Expansion of Global Learning Center

multi-media prepara­ At the same time, BT will tion area that can be have access to the knowledge used to prepare we develop on global learn­ multi-media learning ing and program delivery." modules; and two With the newly expanded small conference facility, the Business School rooms suitable for plans to develop programs group video and that involve on-the-ground audio conferencing. projects around the world, Throughout the Cen­ and new forms of degree and ter, BT's technology non-degree program deliv­ will be used wher-ever ery; to study and review new possible. The ex­ developments in "state-of-the- panded Center's pri­ art" telematic learning systems mary functions and assess their potential for will be: management education; to review all major corporations • To TEACH global­ that teach management from The Global Learning Center was dedicated in December by the ly dispersed students University of Michigan Business School and BT, whose support a distance and document is making possible significant expansion of the Center's capa­ • To EXPERIMENT with in­ their best practices; and to bilities in distance learning. Posing with a plaque unveiled at structional delivery develop instructional mod­ the dedication are, left to right, David Thomas, head of devel­ ules that can be used to in­ opment and training supply for BT; Susan Moore, manager, • To EVALUATE teaching executive development at BT; Michael Mclntyre, BT's regional crease the skill level of faculty manager, distance learning; Graham Mercer, director of inter­ methods and practitioners engaged in national programs at the University of Michigan Business "This initiative will distance teaching. School; and John Taylor, executive regional manager for BT. strengthen and expand the Plans are also going for­ J\. new chapter in the use of further understanding of the Business School's global out­ ward to develop evaluation distance learning technology learning process." reach," said Graham Mercer, material that will be capable by the University of Michi­ The expansion of the Dis­ director of international pro­ of providing a comparison gan Business School opened tance Learning Center, gram development for the between different distance in December, when BT and which currently has only one University of Michigan Busi­ learning approaches and the Business School an­ video classroom, will include ness School. "This support between distance and tradi­ nounced a partnership to the development of a second, from BT will allow us to tional teaching, as well as to expand the current Distance smaller, video classroom; a develop global communica­ write a handbook that will Learning Center into what high-quality video confer­ tions, support educational cover aspects of designing will now be called the Glo­ ence room suitable for endeavors, and study differ­ and delivering management bal Learning Center. The executive presentations; a ent instructional approaches. education at a distance. partnership joins a content provider with experts in Symposium Considers Trends in Marketing communication technology, and was made possible by Panel discussions facili­ spective businesses. companies are facing. a gift of both money and tated by faculty members in The event gave MBA and The keynote address was sophisticated technology the marketing department BBA students an opportu­ delivered by Sunil Gupta, from BT. were featured at the Market­ nity to talk about career assistant professor of "BT has great interest in ing Symposium, hosted annu­ opportunities with repre­ marketing, who directs management education ally by the Marketing Club at sentatives of some of the HERMES, a semi-annual training," said John Steele, the Business School. top companies in the coun­ survey of Web users, and so BT's Group Personnel Direc­ Marketing specialists from try, such as Abbott Labora­ is charting the development tor, speaking by videolink companies in the consumer tories, Ford Motor Com­ of this rapidly expanding from London. "A truly glo­ products, high tech, indus­ pany, General Mills, Kraft, marketplace. (More details bal company will have to em­ trial and pharmaceutical in­ Pillsbury and Procter & on this survey are available brace technology at every dustries came together at the Gamble, as well as to hear at the HERMES site: http:// aspect of this business. We Symposium to discuss their from them about the www.umich.edu/~sgupta/ look forward to developing views on trends in their re­ marketing issues their hermes/.)

34/WINTER 1996 News About Changes at the University of Michigan Business School

This year, several impor­ tional economies since its tant new positions have inception in 1993. In addi­ been created, and some tion to developing and run­ changes have been made ning this program together in crucial existing positions with a small core faculty, he at the University of Mich­ also teaches the finance part igan Business School. For of the program, which has example: been especially well received. As part of his new duties, he • RAJEEV BATRA, associate will retain his role as faculty professor of marketing, has director of the EDP. accepted an appointment as the first research director of • VALERIE SUSLOW, associate the Davidson Institute. He professor of business eco­ will shape the Institute's re­ nomics and public policy, is search agenda, striving to the newly appointed aca­ build a body of knowledge demic director of the on transitional economies Rajeev Batra (left), newly appointed research director of the Davidson Institute, and M.P. Narayanan, new faculty director by creating an accessible of the Davidson Institute. knowledge-building system and a learning cycle in Evening MBA Program. She Suslow's appointment. "Her which operational activities is currently working with efforts to strengthen the and research feed programs faculty to improve the over­ program will be valuable, and lead to additional re­ all quality of the Evening and I thank her for taking search. In addition he will Program, to strengthen our on this responsibility." head the Institute's efforts relationships with corpora­ to disseminate this knowlege tions who sponsor signifi­ • JEANNE WILT, MBA '89, is the new director of the Of­ and will participate in strat­ cant numbers of students in fice of Career Development, egy formulation and plan­ the program, and to explore a role which includes ning for the Institute. Pro­ and evaluate alternatives Recruiting and career ser­ fessor Batra has served as a to the School's current vices. She is currently focus­ member of the core faculty method of delivering MBA ing on the integration of the of the Institute's Executive courses to part-time stu­ offices of career services and Development Program, and dents. "The Evening Pro­ recruiting sendees into one teaches in the marketing gram is of critical impor­ unit, reviewing the range of portion of the program. tance to the School," said Valerie Suslow, new academ­ Associate Dean Edward counseling services OCD • M.P. NARAYANAN, associate ic director of the Evening provides and understanding MBA Program Snyder in announcing professor of finance, has the mix of companies that been appointed Faculty Di­ recruit at Michigan, to en­ rector of the Davidson Insti­ sure that OCD is continually tute. In this position, he will meeting both student and oversee faculty development company customer needs. and involvement in the Insti­ For the past three years, she tute, recruit faculty for the served as director of Alumni Institute's expanding pro­ Relations for the School. grams, and participate in She holds a bachelor's de­ strategy formulation and gree in chemical engineer­ planning for the Institute. ing from the University of Professor Narayanan has Toledo, and previously served as faculty director of worked as a senior analyst the Institute's Executive De­ for Union Pacific Railroad velopment Program (EDP) and as a project manager for managers from transi­ Jeanne Wilt, new director of the Office of Career Development for Exxon Research and Engineering.

Dividend/ 35 Business School General Electric Provides Funds Does Well in to Support "Faculty of the Future Various Rankings Directors of the General For example, the Horace H. • THE MICHIGAN BBA Electric Fund have ap­ Rackham School of Gradu­ PROGRAM tied for third proved a $300,000 grant, ate Studies offers minority place in the first-ever rank­ payable over three years, to fellowships to graduate stu­ ing of the nation's under­ support efforts designed dents pursuing the Ph.D. graduate business programs of business, technical, analyti­ to increase the diversity of degree. In the Business conducted by U.S. News and cal, team and communica­ students in doctoral pro­ School, several endowed World Report. In the overall tions skills and relevant work grams and of business fellowship funds support program rankings the Uni­ experience. school faculty nationwide. doctoral students. versity of Michigan Business According to Computer- The program will launch At the undergraduate School received an average world, Techno MBAs will several interrelated initia­ level, students will be nomi­ score of 3.6, placing it in a number only about 3,000 of tives enabling the University nated by their respective four-way tie for third place, the roughly 88,000 MBAs of Michigan Business deans for participation in along with Carnegie Mellon, that the American Associa­ School to develop new the program, and a faculty MIT's Sloan Business tion of Collegiate Schools of sources of minority appli­ member from the student's School, and North Carolina Business says will be award­ cants for Ph.D. programs, to home institution will be as­ at Chapel Hill. The Univer­ ed in spring, 1996. But the develop a minority graduate signed as a mentor to each sity of California at Berkeley schools say demand is brisker fellowship program, to ex­ selected student. The men­ and the Wharton School at than ever, and many are pro­ pand the forgivable loan tor, who will be a faculty the University of Pennsylva­ jecting a strong increase in program, and to support member currently engaged nia each tied for first place enrollment. faculty development. in the field the student as­ with an overall average score The initiatives are being pires to join, will provide of 3.7. No institution was • HIGH-TECH EXECUTIVE launched through a guidance and counsel with ranked in second place. EDUCATION programs were working partnership with respect to the effort re­ Departments within busi­ written up in the Oct. 23, Tuskegee University, quired to obtain entry into a ness programs were also 1995 issue of Business Week. and through established doctoral program, as well as ranked, and the Business The article mentioned the U- and new relationships with providing the student with School was among the top M Business School's custom­ other historically black an appreciation and under­ five in accounting (3rd), fi­ ized MBA degrees via colleges and universities, standing of the challenges nance (3rd), general man­ videoconferencing to manag­ as well as Native American and rewards associated with agement (1st), international ers at Daewoo Corp in Korea institutions. the mentor's role. (4th), marketing (2nd), and and Cathay Pacific in Hong "One of our greatest During the summer of production/operations man­ Kong. "The satellite class­ challenges over the next five either the junior or senior agement (4th). room will make business years is that of increasing year, each student will par­ courses from professors at diversity in the Ph.D. pro­ ticipate in a three-week • TOP SCHOOLS FOR A the top schools far more gram and among the fac­ Ph.D. awareness seminar TECHNO MBA were ranked accessible to managers, no ulty," commented B.Joseph which will expose students by Computenoorld magazine, matter where they are," said White, dean of the Business to the excitement and po­ based on a survey of 296 cor­ the Business Week article. "It's School. "We are well posi­ tential satisfaction of doing porate recruiters at both likely to dramatically alter tioned to meet that chal­ business-oriented research large and medium-size firms the field of executive educa­ lenge. With this support and teaching. The seminars who hire people with MIS tion — and extend the work from the GE Fund, we can will include such topics as and MBA degrees. Deans of day for many harried man­ become a valuable source of fundamentals of research accredited business schools agers." The University of talented minority faculty design, the use of statistics were also polled. The Uni­ Michigan Business School members for business in doing business research, versity of Michigan was appeared in the magazine's schools across the country." how to write for publication, ranked sixth in that study. listing of the 20 top provid­ Other financial resources and discussions of university Recruiters commented that ers of executive education, at the University of Michi­ faculty career issues. of the 289 U.S. business based on a Business Week sur­ gan and its Business School The University of Michi­ schools that offer Techno vey of deans and program will contribute to the overall gan Business School is MBA programs, the "Top directors, but none of the 20 support of this program. uniquely qualified to design 25" offer the strongest mix were ranked.

36/WINTER 1996 and implement this summer seminar component because Six Faculty Members Promoted at Business School of its three-year experience in professor of business eco­ ate Professorship, a one-year hosting the Minority Summer Promotions of six faculty nomics to associate professor term professorshp which Institute sponsored by the members have been ap­ without tenure. She also provides financial resources American Association of Col­ proved by the Regents as holds the Sanford R. to support the faculty legiate Schools of Business follows: Robertson Assistant/Associ­ member's academic work. (AACSB). The Institute was Michael Johnson, to pro­ designed to prepare a select fessor of marketing; and group of undergraduate stu­ Scott Masten, to professor dents of color to consider of business economics. graduate education in busi­ Lynda Oswald, to associ­ ness administration and ate professor of law, history economics. and communications, with The "Faculty of the Fu­ tenure; Taylor Cox, to asso­ ture" program is being ciate professor of organiza­ directed by Edwin Miller, tional behavior and human professor of business ad­ resource management, with ministration, and Taylor tenure; and Will Mitchell to Cox, associate professor associate professor of corpo­ of organizational behav­ rate strategy, with tenure. Francine Lafontaine was ior and human resource Michael Johnson, Scott Masten, professor of management. promoted from assistant professor of marketing business economics Kendrick Award Goes to Doctoral Student in Marketing

Will Mitchell, associate pro­ Francine Lafontaine, associate fessor of corporate strategy professor of business economics

Milton Kendrick, right, tering the Ph.D. program, who established the en­ Mazvancheryl worked as a dowed annual Milton and manager of strategic plan­ Josephine Kendrick award ning with J. Walter Thomp­ to honor a Ph.D. candidate son. His research focuses on who has demonstrated ex­ understanding, measuring cellence in the field of mar­ and managing the brand eq­ keting, is pictured with his uity concept and testing the daughter, Janet Cassabaum, implications of industrial and Sanal Mazvancheryl, organization theories on Lynda Oswald, associate Taylor Cox, associate who won the Kendrick marketing activities. professor of law, history and professor of organizational communications behavior and human resource award this year. Before en­ management.

Dividend/ 37 Class Notes

A C Mary A. (Driver) Weatherhead ing at Norwich University. Philip and his attention was called to the company's ' ^ BBA '45 wife Marcia have three daughters, one achievement of conducting business in "90 son, and six grandchildren. countries in 90 years." The "E Star" award writes that she and her husband, Tom, is the nation's highest award for excellence own a consulting firm which specializes in in exporting, and honors companies that alternate fuels - specifically scrap tires - David A. Perry either are exporting directly or assist trade for burning in cement kilns. Mary writes 59 BBA '59 efforts through financing, transportation, us that she has not sent information in to international market promotion, or other Class Notes in the past because she has is the newly appointed secretary and export-related sendees. The "E" stands for not worked outside the home since general council of Clarkson Controls Exports, as well as Expansion, Excellence gmmmiiuii. nuwcvci, sue says, was my aiiu JL.LILHU111L11L \j\j\iiuaiiy ill ivcuiuiu, and Effort. Since 1961, when the "E" award education wasted? I think not. What do Michigan. The company manufactures program began, 1,800 commpanies and you think?" She goes on to say that she and supplies high performance ther­ organizations have received "E'Awards and and her husband raised 13 children, all moplastic tower packing and supplies 300 have been presented "E Star" awards. of whom have college educations. The}' various processing control devices. include two physicians, three teachers, two chemists, four business owners/ William A. Hockenberger Jeffrey E. Jarrett managers, and two health care workers, BBA '59 62 and have given Mary and Tom 34 BBA'62 grandchildren. The couple spends their recently retired from Deloitte & Touche is a professor in the Department of winters in Florida and their summers in LLP to start his own consulting firm, Management Science at the University of Wayland, Michigan. William Hockenberger Consultancy. Rhode Island. He writes that he was the co- Formerly a senior manager and financial recipient of the Robert W. Pearson Award industry specialist in the managerial for his applied research paper. The award consulting practice of Deloitte & Touche David K. Eiteman was presented at the 1995 northeast LLP, Bill has over 30 years of experience BBA '52 regional meeting of the Decision Sciences in banking and management consulting. Institute in Providence, Rhode Island. is currently living in Penang, Malaysia, The firm specializes in banking, treasury where he is working on a revision of his management, and business planning and will offer the following services: treasury text on multinational business finance Samuel H. Hazleton TV and conducting research on the impact management review, bank selection, 64 BBA '64, MBA '65 of the Penang Free Trade Zone on treasury department project implementa­ income distribution in Malay families. tion, business planning, and part-time is entering his 26th year as a career agent He is professor emeritus of the Anderson cash management. for Northwestern Mutual Life, located in Graduate School of Management at Albany, New York. He is a life and UCLA. James C. Park qualifying member of the Million Dollar BBA '59, MBA '61 Round Table. He and his wife Karen have Philip M. Smith five children and eleven grandchildren. who is president and CEO of Besser They recently moved to Lake George, New BBA'51, MBA'52 Company, accepted the "President's E York, and also have a condo in Longboat has been given a three-month assignment Star Award" for sustained excellence in Key, Fla. Sam writes that he is still a "loyal to the College of Business Administration exporting on behalf of over 600 Besser Wolverines fan." in Bielsko Biala, Poland, by the National employees worldwide. Besser Company, Forum Foundation - American Volun­ the world's leading manufacturer of concrete products machinery, received teers for International Development. /C ^ Carl John Bauer There he helped to train students for the award in October 1994 at the Besser effective operations in the competitive World Headquarters in Alpena, BBA '65, MBA '66 arena of a free market economy. After Michigan. During the ceremony, writes that he is head of investment graduation from the Business School, advisory for the National Bank of Bahrain, Philip served as a budget accounting which is located in the Arab Gulf. In July office in the USAF at Limestone AFB, CORRECTION of 1995, the Bank closed its $50 million Maine, and then spent 35 years in Dividend apologizes to the Ann Arbor NBB Guaranteed Fund, the largest of its financial management with General Observer and writer Ken Garber. whose kind ever underwritten in Bahrain. The Electric and TRW, Inc. After retiring in article on Jem- Campbell of Republic deadline for subscription was extended 1989, he consulted with Vermont small Bancorp was a source for the article after brisk demand for the fund resulted in businesses, primarily through the on Campbell that appeared in the an increase in the amount from $30 million University of Vermont - Small Business Spring. 1995 issue of Dividend. to $50 million. The fund invests in financial Development Center and Greenbriar Correct attribution was inadvertently futures and foreign exchange and matures Resources of Underbill, Vermont, and omitted and we regret the omission. in July 2000. Investors came from Bahrain, also taught management (cost) account­ Saudi Arabia, Kuwait and the United Arab Emirates.

38/ WINTER 1996 to National ALA, and as a lecturer for the ALA Intern Development Program. He is Selected a Marketing Superstar by Advertising Age also a member of AIA-Detroit, where he has served as president, vice-president, Jim Stanley, MBA "67, vice president of treasurer and chair of the Public Relations marketing at Kendall-Jackson Vineyards Committee. In 1992, he received an award & Winen-, has been named to Advertising designating him AIA Board Member of Age magazine's 1995 Top 100 Marketers the year. list. "Like a winemaker blending vintages, Jim Stanley mixes his market­ Paul S. Foote ing plan with attention to taste and BBA '67 style." wTote Advertising Age. "The result of his efforts has been the rise of the 12- is now a visiting professor of accounting at year-old Kendall-Jackson Vineyards and Sultan Qaboos University, College of Winery to one of the Wine Enthusiast's Commerce and Economics in Muscat, top five 'power' wine brands in the Sultanate of Oman, and writes that this nation." summer he took a trip to Iran. He also tells Since Stanley joined Kendall- us that his son David is the author of the Jackson in 1993, sales volume has computer game Star Reach, which, he says doubled, and the company is now the is available at computer stores everywhere. fastest growing super premium winen- in His daughter Sheila is a student at the the world, with shipments of about two University of California-Berkeley. million cases annually. Stanley has been able to achieve such dramatic results by James M. Stolze transferring successful brand-building MBA '67 strategies used in other industries. has been named executive vice president Jim Stanley, marketing superstar, Specifically, he has created a separate and chief financial officer for MEMC zoith some of his product. "flavor domain manager" for each of the Electronic Materials, Inc., the world's 10 independent wineries under Kendall- second leading supplier of silicon wafers Jackson's Artisans and Estates corporate umbrella. He subsequently empowered for the semiconductor industry. The these managers to create their own distinct product line identity by becoming experts company employs about 6,000 people in their individual product areas. Before taking the job with Kendall-Jackson, Stanley worldwide, and became the first publicly was director of marketing on premium table wines for Gallo Winery. traded silicon wafer manufacturer when it Stanley's competitive zeal doesn't end with the work day. He is an avid triathlete began trading on the New York Stock who has twice finished the Ironman World Championship in Kona, Hawaii, where Exchange July 13. Jim was previously competitors complete a 2.4-mile ocean swim, a 112-mile bike ride over lava fields, and employed by KPMG Peat Marwick for 28 a 26.6 mile marathon run. years and became a partner there in 1977. Stanley and his wife, Linda, who graduated from U-M in 1967, live in Modesto, He currently serves on the board of the Calif. Their daughter, Karyn, just enrolled at the U-M. Missouri-Illinois Region of the American Red Cross and the board of advisors of the Institute of International Business at St. Louis University. Robert H. Gardner to the procedures and documents committee of the National Council of 66 MBA '66 Architectural Registration Boards, which Lionel A. Whiston, has been working in Moscow, Russia as a is responsible for interpreting Council 71 MBA'71 consultant and vice president of opera­ standards and studying the effectiveness of tions for telecommunications companies. Council documents. He has previously is vice president and senior credit officer He has also started retail and wholesale served on the Professional Conduct at the Chicago-Tokyo bank, located in distribution companies specializing in Committee and as a grader for the Chicago, 111. distributing and selling high quality, Architect Registration Examination. Dan's branded, imported, men's and women's extensive experience regulating the Carlisle R. Davis practice of architecture includes his clothing in Moscow and the Russian MBA '71 Federation. Robert writes that the service to the Michigan Bureau of business is expanding rapidly and he is in Occupational and Professional Regula­ retired in June from General Motors after search of a strategic partner or companies tion, which he has served by gubernatorial 37 years in engineering, quality and interested in joint cooperation. appointment since 1992, acting as the program management. In August he was board's secretary, vice chair and chair. In appointed vice president of quality 1994, Governor Engler appointed Dan to assurance for the Outboard Marine Daniel Redstone serve as the architect member of the Corporation in Waukegan, Illinois, makers Board of Engineers. In addition, he has of Johnson and Evinrude outboard 67 BArch '65, MBA '67 provided leadership to the American motors, and Chris Craft and Four Winns who is president of Redstone Architects in Institute of Architects (ALA) as Michigan Boats. He and his wife will live in the Southfield, Mich.,was recently reappointed Society of Architects Legislative Liaison Chicago North Shore area.

Dividend/ 39 Martijn Sanders, MBA '69 financial officer for the U.S. Department of Education and lives in Oakton, Is Chief Executive of One Virginia. of the World's Great Concert Halls HA Mark J. MacGuidwin Martijn Sanders, MBA '69. who is managing director of one of the world's great concert halls, Het Concertgebouw, ' ' BBA '74 Amsterdam, says his days at Michigan really shaped his way has been appointed vice president, of thinking. "In school. I found case studies passionately controller at Varity Corporation's world interesting," he told the Monroe Street Journal. "Break even headquarters in Buffalo, N.Y, where he is analysis hardly seems like a term you'd hear echoing down responsible for consolidation of financial the corridors of a concert hall, but these techniques provide results and financial reporting to me today with a useful way of approaching practical shareholders and the SEC. He is also problems." Het Concertgebouw presents over 700 concerts responsible for information technology, per season, and regularly features leading performers from operations and strategy for Varity around the globe. It is an impressive facility, including a headquarters. Varity ranks among the 2,037-seat Main Hall, and a 478-seat Recital Hall. largest U.S. industrial companies. Its Last May, Martijn pulled off one of the great coups in businesses include Kelsey-Hayes, a major arts management by bringing together in Amsterdam the Vienna Philharmonic supplier of brake system products; Dayton Orchesu-a, the Berlin Philharmonic Orchestra and the Royal Concertgebouw Orchestra Walther, a leading manufacturer of wheel of Amsterdam to perform the entire cycle of Mahler symphonies. It was an unprece­ and brake components; and Perkins, dented collaboration and a smashing success. which supplies diesel engines to more Martijn employs a "high volume" strategy in keeping the Concertgebouw financially than 600 equipment manufacturers sound. Unlike most European arts organization, which are heavily subsidized, only 6-7% throughout the world. Varity' also holds a of the Concertgebouw's operating budget comes from government subsidy. The rest is 46% interest in Hayes Wheels Interna­ derived from corporate sponsorships (about 35%) and ticket sales (about 60%). By tional, Inc., which is the world's largest offering over 200 concerts per season, spanning a wide range of musical stvles, the manufacturer of aluminum and steel Concertgebouw is able to attract audiences with a variety of tastes in order to boost wheels. Before moving to Varity, Mark was capacity utilization. Martijn has been particularly successful in filling a void in the vice president, finance, for Libbey-Owens- marketplace of young children's musical events. "An important part of my job is to Ford of Toledo. Earlier, he worked for cultivate an appreciation for the performing arts among the next generation," observes Ernst & Young. Martijn. "That's why we've instituted programs like our free lunch concerts and open rehearsals, for new ears to have the chance to listen, and be hooked for life." Martijn. who is considered by his colleagues to be one of the finest performing arts 7P Fuad S. Saba presenters in the world, is president-elect of the International Society for the Performing MBA '78 Arts (ISPA), which includes the top performing arts presenters and artists' managers from all over the world. He is only the second non-U.S. elected president of die writes that he is presently a senior tax organization, which is growing dramatically. There are a few issues I want to take on as manager in the international tax group at president," says Martijn. "My first priority is to serve as a conduit between professionals. I KPMG Peat Marwick LLP in Denver, want the organization to serve as a marketplace for the exchange of creativity, informa- Colorado, where his practice focuses on tion, esthetics. In so doing, I hope to bring a more global consciousness to the art world, cross-border transactions in the industries as I have tried to do at Het Concertgebouw." that are hot in the area: cable television Before becoming managing director of Het Concertgebouw, Martijn spent ten years operations, cable TV programming, as managing director ofjoachem's Theaters, a chain of cinemas in the Netherlands. telecommunications, software and high- tech medical manufacturing.

of public financial management. The Mary Kay Haben Michael R. Julien association serves government officials 79 MBA '79 BBA '73 and the public through its efforts to has been named executive vice president ensure full and fair accountability for all has left Arthur Andersen's Grand Rapids of Tombstone Pizza at Kraft Foods. She is public moneys, and by providing a variety' office after 21 years of service to become currently also serving as chairwoman of of pro bono services throughout the the vice president of taxes at Meijer, Inc. the Alumni Society Board of Governors at United States and its territories. Mitch of Grand Rapids. Meijer operates over the University of Michigan Business also serves as the chairperson of the 100 superstores in Michigan, Ohio, School. Indiana, Kentucky and Illinois. American Institute of Certified Public Accountants Committee on Members in Government. In December, 1994, he Bill G. Zeilstra Mitchell L. Laine received the U.S. Department of Educa­ MBA '79 BBA '73 tion Executive Management Award in who is controller at Kamp's Pallets, Inc. in appreciation of efficiency and effective­ is now president-elect of the Association of Grand Rapids, tells us that he wrote a ness in the field of management, Government Accountants (AGA), an grant proposal to the Michigan Depart­ presented by Secretary of Education international organization of over 11,000 ment of Natural Resources to start a Richard Riley. Mitch is the deputy chief members dedicated to the enhancement project that would divert wood waste from

40/ WINTER 1996 land fills. Instead of being thrown away, law and is also the legal editor of Marketing managing initial public offerings and due wood pallets would be shredded and then Neius magazine. diligence on major acquisitions. Her colored to become a ground alternative client service experience has included to bark. The $158,000 grant, which was John M. Ranke Rouge Steel, OfficeMax, United Technolo­ approved, will be used to purchase the BBA '80 gies Automotive and Fretter Inc. She coloring equipment, bagging machinery, earned the Chairman's Client Service conveyors, and a special semi-trailer. is a member of the International Tax Award in 1993 and is involved in the Services group at the Detroit office of Price Women's Economic Club and the Retail Tim Bartholow Waterhouse and was recently promoted to Financial Executives Group. She and partner. After receiving his law degree B.Mus, M.Mus., '73/'74, MBA '79 her husband Jim recently celebrated the from Wayne State University Law School, birth of their second child, Andrew, on recently accepted a position as the first John joined Price Waterhouse's Detroit July 6, 1995. They also have a two-year- director of performing arts at the office tax department in 1984. Following a old son, Clay. University of Georgia, after having spent two-year stint in private legal practice in 1987-88, he rejoined Price Waterhouse, four years as the general manager of the Brian D. Doerner Lied Center for Performing Arts at the where he has been a member of the University of Nebraska. Tim writes that International Tax Services group since MBA '82 the University of Georgia is in the middle 1990. John has specialized in marketing, became a partner this summer at Ballard of a two-phase building program coordinating and delivering the full range Spahr Andrews & Ingersoll, a 275-lawyer dedicated to making the University a of international tax services to multina­ firm based in Philadelphia. He practices major player in performing arts. Phase I, tional clients of the Detroit, Toledo and principally in the areas of securities, which is now complete, includes two new Battle Creek offices, including Kellogg, mergers and acquisitions and general theaters, a new museum of art and a new Dana, Dow Corning, Asgrow Seed, Kelly corporate law, and writes that he gradu­ music classroom building. Phase II will Services, Kmart and Mitsubishi Motors of ated from the University of Pennsylvania include a new drama theater and America. He has also been instrumental in Law School in 1987. classroom building. There are also three attracting and providing specialty services older performing spaces on campus, and to Chrysler Corporation and Amway Corporation. John and his wife Cathy, and Tim will direct the fine arts programming Mark R. Kennedy in all six theaters. Previously, Tim spent their three children live in Bloomfield 83 MBA '83 five years with AA&Co., and was a Hills, Michigan. financial manager with the New Orleans recently joined Department 56, Inc., the Symphony and the Chicago Symphony. leading giftware supplier of Christmas R. John Aalbregtse villages, snow babies, etc., as the chief 81 financial officer. He and his wife Debbie, Timothy F. List MBA '81 and their four children have returned MBA '79 was recently admitted as a partner to the home to Minnesota (headquarters of writes that as a director of Business U.S. partnership of Andersen Consulting, Department 56 Inc.) and have purchased Development for Campbell Soup the global management and technology a 60-acre farm just west of Minneapolis. Company, he recently led the acquisition consulting organization. John is a by Campbell's of Pace Foods, Ltd., the consultant within Andersen Consulting's Kelley M. Maier Strategic Services practice in Chicago, with number one marketer of Mexican food MBA '83 sauces, such as picante sauce and salsa, in responsibility for the process industry the U.S. This was a $1.1 billion acquisi­ group. He specializes in business process has been promoted to vice president of tion, the largest in Campbell's 125 year reengineering, restructuring, and supply marketing for Dole Fresh Vegetables - a history. Tim also led the post-acquisition chain strategy. $500 million division of Dole Food business integration team. He and his Company. Formerly Kelley had marketing wife Paula, and their three sons have Robert L. Shapiro positions at Pillsbury, Kraft and Kentucky been living in the Philadelphia area since Fried Chicken. She has lived for nearly MBA '81 1991, and would be happy to hear from five years in California and says "Monterey Michigan alumni living in the area or has been named product manager for is truly one of the most beautiful spots in from alumni via e-mail. DOSE Systems, Inc., a software develop­ the United States!" ment company in Ft. Worth, Texas. Peter M. Kelley Of) Maxine Lans Retsky BBA '83 0U Cathy A. Weissenborn MBA'80 is now a partner at the Price Warehouse BBA '82 married Jonathan E. Retsky, a patent office in Battle Creek. Peter began attorney, July 15, at the hotel Nikko has been promoted to partner for the working for Price Warehouse in Detroit in Chicago. Fellow classmate Nancy Tauber Detroit office of Price Warehouse. She 1983, was promoted to manager in 1988, (MBA '80) was Maxine's maid of honor. started her career with Price Warehouse in and to senior manager in 1991 when he Maxine and Jonathan honeymooned in 1983 in Houston, transferred to Detroit in transferred to Battle Creek. His most Kauai and French Polynesia. Maxine is a 1987 when she was promoted to manager, recent client responsibilities have included marketing lawyer at Pattishall McAuliffe, transferred back to Houston in 1989, and the auditing of Kellogg Company, Dow specializing in promotion and trademark back to Detroit in 1993. Cathy's industry Corning Corporation, Gantos Inc. and the specialties include financial services and Kellogg Foundation. He has also been retailers. She also has extensive experience involved in several significant litigation

Dividend/ 41 Susan Arneson, MBA '84 Michael J. Halpern MBA '86 Wins Award for Outstanding Service who became the manager of the Merrill Susan Arneson, MBA '84, vice president of marketing and business development for Lynch office in Ann Arbor in 1993, Testing Engineers & Consultants, Inc. (TEC), has received the 1995 Roger W. Truesdail has now been promoted to full vice Award for outstanding service from ACIL, the trade association representing the nation's president. The Ann Arbor branch of independent scientific, engineering and testing industry. Merrill Lynch manages approximately $1 Susan has been active within ACIL for more than a decade. She helped to launch its billion of client assets and employs 40 Business Practices Review Program and has aided the association's membership develop­ people. Michael, who lives in Ann Arbor ment and member services initiatives. In 1994, she was elected to a three-year term on the with his wife Kelly and daughter Lauren, ACIL board of directors. joined Merrill Lynch as a financial Susan, who holds both bachelor's and master's degrees in biology, has 18 years consultant after receiving his MBA. experience in the technical and marketing management of professional services. Before joining TEC in 1990, she worked in marketing and operations for Detroit Testing Laboratory. TEC operates four facilities in Michigan and has 150 employees. It provides Q H Roshunda L. Price-Harper consulting engineering and testing services in the environmental, construction, BBA'87, JD'93 geotechnical and applied technology fields. ACIL members operate thousands of facilities across the U.S. and abroad and offer a joined the law firm of Howard & Howard range of laboratory, analytical, testing, inspection, research and consulting services to Attorneys, P.C. this fall at its Bloomfield clients in commerce, industry and government. Hills, Michigan office, where she will Susan is married to Allen Weaks, MBA '83. a marketing consultant. She is an avid specialize in business law. Prior to advanced master gardener, and regularly volunteers her time for the Oakland County receiving her law degree, Roshunda, a Cooperative Extension Service, giving garden talks to local community groups. certified public accountant, worked in the audit division of Arthur Andersen & Co. in Detroit from 1987 to 1990. After law school, she served as a law clerk to support engagements and merger/ and working with the executive team to acquisition assignments. Outside of the turn the company's $8 million loss in office, Peter is a board member and co- 1990 into a $5 million profit in 1994. chairperson of Junior Achievement of South Central Michigan, and in 1994 Thomas R. Northenscold BBruc, e Schwartz, MBA '84 earned JA's national Silver Leadership MBA '85 Award for outstanding volunteer service. He is also active with the Burnham Brook is now the chief financial office of PPT, Senior Center and Substance Abuse Vision, Inc., located in Eden Prairie, Is President of a Firm That Council in Battle Creek. Minnesota. PPT is in the machine vision business and is traded on the NASDAQ. Won American Business Fellow alum Joe Christenson (MBA '85) is Ethics Award OA Kevin F. Demsky the president. °~ BBA '84 Bruce Schwartz, MBA '84, writes us that his company was one of four winners has accepted the position of regional O/T Robert E. Barron nationally of the American Business Ethics director of marketing for Healthcare MBA'86 Award, sponsored by the American Services Group, Inc. in Memphis, Ten­ Society of Chartered Life Underwriters nessee, a management services company is now the senior vice president of finance and Chartered Financial Consultants in involved in the long term health care at Twentieth Century Fox TV in Los association with Forbes magazine. industry. He was married in October, Angeles, where he is responsible for all Bruce's company, Jerith Manufacturing 1994 to Karen Silien, a Ph.D. student in financial analysis, strategic planning, Company, Inc. is a national fabricator of counseling psychology at the University budgeting, forecasting and production aluminum ornamental fences. It recently of Memphis. accounting. installed a SI.5 million finishing system that improved the quality of the finishing Jong-Woo Kim on the fences and allowed Jerith to Timothy J. Ryan MBA '86 provide an unlimited lifetime warranty on 85 MBA'85, JD'85 its products while lessening the environ­ is now working as a marketing manager in mental impact of manufacturing. was recently featured in Grain's Detroit Jakarta, where he is responsible for Philip Jerith was founded by Bruce's grandfather Business magazine as one of Metro Morris's tobacco business in Indonesia. 44 years ago. His father is currently Detroit's 40 most successful business Before being relocated, he worked in chairman of the company. The award read, executives under the age of 40. Tim is Seoul. He writes that he would "love to "Throughout its 44 year history, die the executive vice-president and general get in touch with Michigan B-School company has demonstrated a continuous council for Detroit-Macomb Hospital alumni who are living in or happen to dedication to quality production techni­ Corporation (DMHC), based in Warren, pass by Jakarta." He has been married for ques, honest pricing and sales practices, Michigan. He says his biggest achieve­ seven years and has two children, Helen and environmental responsibility." ments have been integrating risk-manage­ and Ted. Previous awrd winners include Texas ment and quality assurance operations, Instruments, Levi Strauss, and Merck & Co.

42/ WINTER 1996 the Honorable John Feikens, United States District Court, Eastern District of Michigan. Currently, Roshunda is a member of the executive council of the Co-Founds Firm Specializing in Temporary Legal Workers Young Lawyers Section of the State Bar of Michigan, and she is also a member of the A new company co-founded by David Galbenski, BBA '90, and Mark Adams specializes Wolverine and American Bar Associations in helping law firms and corporate legal departments throughout Michigan to handle and the Michigan Association of CPAs. any workload by staffing with temporary legal help. Since it was founded in 1993, AmeriClerk has developed a rapidly expanding client list. AmeriClerk's clients can tap into the company's database of hundreds of temporary Phillippe Prufer lawyers and law clerks to find the right candidate to perform legal research and writing MBA '88 on a project-by-project basis, to sene as a member of a trial preparation team, or even to writes that after six months as director of cover a court appearance. Clients also use AmeriClerk to maintain business development for Eli Lilly Brazil, proper staffing levels during sick leave, leaves of absence and he now has a new assignment as director maternity leaves. "By using temporary lawyers and law clerks, our of Pharma Operations, where he will be clients increase their staffing flexibility and decrease the cost of responsible for over 350 employees and serving clients," says David, who graduated cum laude from Wayne sales in excess of $150 million. While State University law school and worked in the commercial director of business development, litigation department of Detroit's Timmis & Inman before Phillippe started a dedicated Diabetes becoming president of AmeriClerk. The company's clients Business Unit and created a Diabetes include Michigan Consolidated Gas Company; MCN Corpora­ Disease Management Program with tion; Universal Standard Medical Laboratories, Inc.; Kerr, Harvard University/Joslin Clinic/ Russell & Weber; Timmis & Inman; and David D. Patton & Brazilian Society of Diabetes. He says Associates. his goal is to assist Eli Lilly Brazil to AmeriClerk's success in Michigan parallels the tremen­ further grow its business via internal dous growth taking place in the professional segment of the growth and local acquisitions/strategic temporary placement industry across the country. alliances. Phillipe and his wife Alex­ According to Crain 's Detroit Business, lawyers are one of the andra have three children, and he last of the professions to fill the ranks of contract labor, encourages anyone visiting Sao Paulo, but an estimated 40,000 lawyers and paralegals were Brazil to get in touch with him. (Fax. No. employed as temps last year. is 55-11-532-6966) Several factors are contributing to the trend for contract legal services, among them: corporate downsizing, a glut of law school graduates, a growing Patrick W. Cranley demand for fixed-fee rather than per-hour legal MBA and MA, Asian Studies '88 service arrangements, and disenchantment with career-track has a new job as the deputy chief lifestvles. representative for CIGNA Corporation in Beijing. He has been with CIGNA, a multinational insurance and financial services company, since graduation, products in the segment. He has been Roger Shubert always working in the international area. in Paris for over two years and was prev­ BBA '89 Pat's new responsibilities will include iously assistant director of sttategy for the has been promoted to senior consultant servicing CIGNA's global clients who have company's pharmaceutical unit. Sanofi is a at Lante Corporation, which specializes insurance exposures in China, developing healthcare and beauty company with such in information systems consulting and CIGNA's relationships with Chinese brands as Yves Saint Laurent and Yves systems integration and is located in businesses and government organizations, Rocher and is majority owned by Fance's Chicago. Both Roger and his wife Elaine and building an effective team of CIGNA largest industrial firm, Elf Aquitaine. Mike, are evening MBAs at Northwestern. employees in China. Pat's former posi­ his wife Eyde, and sons Brian, Daniel and tion was director, emerging markets, for Zachary live in Paris. His e-mail address is CIGNA International (a division of [email protected]. Mark Jonathan Chekal CIGNA Corp.) He was stationed in Sing­ BBA '89 apore from 1989-1992. He and his wife just completed his masters program in Matthew A. Kenkel and two children are now living in public health at the University of Califor­ Beijing. MBA '89 nia, Berkeley, and has started a doctoral owns the Farmington Hills, Michigan program in public health at UCLA, where Michael J. Reilly office of ERA - Banker's Realty, Inc. Matt he will be focusing on HIV prevention, MBA '88 writes that real estate activity in the greater particularly in the population of homo­ Detroit area is outstanding, adding that sexual males. was recently promoted to international homes are currently appreciating at product manager at Sanofi SA based in double digit rates. His company is a full Paris, where he is responsible for the service broker serving Oakland and Wayne development of the osteoporosis strategy Counties since 1981. and worldwide launch of upcoming

Dividend/ 43 North Carolina, and he writes that he would love to hear from alumni at "[email protected]".

Named Marketing, PR Joel D. Smernoff Director of Atlanta Opera MBA'91 this summer completed a private Christina Vasconez. who received both her placement to raise capital to start a local masters in music and her MBA in 1990, is financial services firm, Target Investment putting both degrees to good use in her Services, Inc. Joel's firm features two new job as marketing and public relations primary sendees — a mutual fund asset director of the Atlanta Opera. She joined allocation program and a full service, the Opera in early 1995, and in less than a discount brokerage. In August, Joel year on the job has increased the number of wrote, "The doors have been open for subscribers by 30%. How has she done this? only three months and I am already By a variety of creative promotions (e.g., an putting the knowledge gained from the advertising campaign directed at listeners of MBA program to good use. Especially a local rock-format radio station), and by hepful, as it turns out, were Prof. Dave expanding both the number of annual Brophy's venture capital class and productions and the performances of each Prof. Will Mitchell's corporate strategy production. "The focus (of the ad cam­ course. Target Investment is located in paign) was to sell the spectacle of opera to Gaithersburg, Maryland. an audience that understood spectacles but had never been to an opera performance," she explains. "A lot of my marketing strategies are built around selling our product to younger, non-traditional opera-going Cf) Leslie Ingold audiences. That's where the future market is." To make the experience more appeal­ MBA '92 ing, the Opera provides super-titles on three, strategically-placed big screens so that recently moved from Birmingham, audiences can follow the plot when it's being sung in a language other than English. Michigan to Minneapolis to accept a The Atlanta Opera, which was formed in 1979 by the merger of two smaller position as account executive on the companies, books internationally acclaimed artists from around the globe. Business national BMW account at Fallon operations for the 4,500-seat facility have grown from SI million to S3 million over the McElligott advertising agency. Previ­ last five years. ously, Leslie was an account executive on Before joining the Opera, Cristina, who is an accomplished pianist as well as a the national Buick account at McCann- member of the Atlanta Symphony Orchestra Chorus, worked with the Atlanta Symphony Erickson Detroit. Orchestra: first as audience development director, and later as director of public relations. She got her start in the business side of music as a fellow in the American Jeff Schwartz Symphony Orchestra League's Orchestra Management Program. Through ASO, she got on-the-job management training with the San Francisco Symphony, the Cincinnati BBA '92 Symphony Orchestra and the Rhode Island Philharmonic. has made a major career change from Cristina, who is of Ecuadorian descent and is fluent in Spanish, has been selected to investment banking to medicine. He was serve as an attache to Ecuador for the 1996 Atlanta Centennial Olympic Games. She is previously a corporate finance analyst on call to find housing for athletes, give tours and schedule practice places and times for with Vector Securities International, and the Ecuadorian teams. has now matriculated at the Rush University School of Medicine in Chicago. He expects to receive his M.D. in June, 1998. Mark T. Long 917 Scott Michael Clements Patrick Friel, MBA, MA '91 BBA '90 MBA'91 Amy Rubin, MBA, MA '92 has been named a senior associate with has been promoted to financial control­ were married this summer and write that the Seattle, Wash, firm of The Myers ler for Honeywell's China Region which many Business School alums were at Associates, P.C., which serves the covers Hong Kong, the People's Republic their wedding, including Cathy Relyea accounting and tax needs of individuals of China, and Taiwan. Scott is based in and Sue Haddrill, both MBAs '92; LeAnn and closely held businesses and also has Hong Kong. Ericksson Guyton, MBA/MA '91; Jeff a large not-for-profit client area. Mark Guyton, MBA/MA '91; and Jennifer is also currently the president of the Herbert M. Hernandez III Billingsley, BBA '85. Both Patrick and University of Michigan Alumni Club of MBA'91 Amy received their master's degrees in Seattle and is pursuing a degree in Asian Studies and both work for Dole taxation from the Seattle extension of has joined the ThinkPad marketing team Food, where Amy is in marketing and Pat Golden Gate University. at IBM and will have worldwide respon­ is an internal consultant. They live in sibility for ThinkPad marketing and Thousand Oaks, California. sales information. Herb and his family are excited about the move to Raleigh,

44/ WINTER 1996 Yvette Russell Hunter, MBA'93 03 Andrew D. Wolff Houghton Mifflin in Boston. Mike also MBA '93 writes that this past August he married Rebecca Brewer, a 1991 Michigan graduate. was married in March, 1995 to Noelle Becomes Brand Cooper, a 1993 graduate of the U-M Law Manager for J & J School. They now live in Colchester, Gre p Fole Connecticut, where Lt. J.G. Wolff is p^ g - y assigned to an attack submarine, the USS MAcc, BBA '94 Pittsburgh. writes that he has led a double life since graduation. During the week, he is an Andrew V. Masterman analyst, mergers and acquisitions, with MBA and MA in Japanese Studies, '93 Kleinwort Benson, a British investment bank, in the New York office. On the is now president of Walbro Japan Inc., a weekends, he runs FoleyGuide, a rating subsidiary responsible for the manufac­ book of the restaurants of Detroit that also ture, distribution and sales of Walbro small includes Ann Arbor, Windsor, selected engine products in Japan. Walbro Japan restaurants statewide and chain restau­ employs about 220 people and has two rants. The book is based on a survey of 800 offices, a factory in Miyagi Prefecture in actual Michigan restaurant goers and northern Japan and a headquarters in includes over 300 eating establishments. Tokyo. As one of Michigan's fastest Maps and a menu price-range guide are growing companies, Walbro Corporation included. has rapidly expanded its domestic and international presence over the last several years. Through focusing on advanced Check Us Out technologies and environmentally sensitive Continued from Inside Front Cover solutions, Walbro has established itself as a leader in fuel delivery, storage and organized on the Web," says Professor management products for the small Lafontaine. "I can link things together and Yvette Russell Hunter, MBA '93, engine and automotive markets. Andrew, take a person from one page to another. has joined Johnson &Johnson Co. who used to work for Intel Corporation, "For example, I can say, 'Here is this where she holds a rotational brand writes, "while Intel is an exciting and concept, and if you click here you will be management marketing position in progressive company, the opportunity to brought back to the part of the course the company's Farmington Hills manage a foreign subsidiary of a U.S. where it was introduced.' So you have the office. There she is part of a cross- multinational has been one of my top ability to see where, in the context of functional team charged with professional goals." He says he looks previous discussions, the concept was promoting a broad line of health forward to hearing from alumni and staff introduced." and beauty products, and over-the- as they travel through Japan. Lafontaine reports that a growing counter pharmaceuticals. number of students are accessing the class Previously, Hunter had been an pages, and that students like the ease of associate product manager at Stephane Blondeau use and the access it gives them to lecture General Foods (now Kraft Foods) MBA '93 notes. Students in the evening program where she served a summer has started his own business, which have been particularly enthusiastic about internship in 1992, and later was specializes in customer satisfaction the site, which gives them an extra tool for hired to work in the firm's beverage measurement and service quality improve­ studying the material. division. Her first project involved ment consulting. The business — named Although Lafontaine currently prints working with company attorneys to "100% Satisfaction" is based in Paris. After out and distributes in class most of the obtain FCC legal clearance on the graduation, Stephane writes that he joined material included in her "Web Classroom," "less sugar" claim for Kool-Aid. the Dunn & Bradstreet corporation, she says she hopes that eventually the Web Later she helped to expand the working at the Nielsen European Office in pages can replace the printed material she Kool-Aid Burst single-serve market Brussels and Paris, where he was involved hands out in class, thus leading to a less in convenience stores. As an intern, in marketing strategies and product paper-intensive classroom. she developed strategies to pro­ development. In April, 1994, he left to Advances in technology are now mote Tang Instant Breakfast drink start his own business, which now has making it possible to link students and to Hispanic markets in the U.S. grown to eight consultants, working for professors in collaborative learning Hunter earned her bachelor's OTIS, 3M AlliedSignal, PepsiCo, and environments that are increasingly degree in political science and : Compaq Computers, both at the French becoming independent of time, distance public administration from UCLA, level and at the European level. He says and location. Members of the Business and says her Michigan MBA the company is targeting $3 million in School community are continuing to education gave her "perfect prepar­ revenue for 1996. explore ways to make new forms of ation" for the daily challenges she learning available in ways that were previ­ faces as a brand manager. ously impossible. Stay tuned. • Michael Mercier {Dividend is grateful to the Monroe Street MBA '93 Journal and MBA students Charles Azu, Paul is currently working as a marketing man­ Maurer, and Steve Pert for substantial ager in the college textbook division of contributions to this article.)

Dividend/ 45 Ph.D. Notes ••••• H. Michael Hayes George E. Phillips, MBA '30, died June Ph.D. '77 15, 1995. Since 1930 George had worked for Kellogg of Battle Creek and Standard writes that in 1994 he was a visiting Oil of Indiana, as well as in real estate. professor of strategic management at During World War II he served in the U.S. Trinity College Dublin, and was subse­ Navy in Norfolk, Virginia's landing force quently appointed external examiner to equipment depot that supplied the U.S. the Trinity College MBA program. He is effort in the Pacific. A life-long resident currently professor of marketing and of Detroit, he was a member of Kiwanis strategic management at the University of International. While studying at the Colorado at Denver. School, he was a member of Alpha Kappa Psi business fraternity. Daniel Short MBA '74, Ph.D. '77 John A. Carstens, BA '33, MBA '36, died unexpectedly April 24,1995 in Chicago. is the new dean of Miami of Ohio For many years he owned and operated University's Richard T. Farmer School two major department stores in Michigan of Business Administration. The School City: Carstens Brothers, a store estab­ was recently named one of the top 40 lished by his family in the 1870s, and later undergraduate business programs by U.S. the Mayfair Department Store. One of his News and World Report. Before moving to first positions after graduating from the Miami, Dan had been the dean of the School was that of deputy administrator business school at Kansas State University for the Defense Savings Plan, in which he since 1992, and a professor at the Univer­ James Bulloch, BBA '55, MBA '57, worked closely with U.S. Treasury sity of Texas at Austin from 1977-92, professor of accounting at the Business Secretary Hemy Morganthau to promote where he also served as associate dean School from 1960-1972, died September the World War II U.S. Savings Bond from 1987-92, assistant dean for executive 7, 1995. At the time of his death, he was program. He was responsible for the education from 1986-87, and director of managing director of professional and installation and operation of the Payroll the Option II Executive MBA program technical sendee with the Institute of Savings Plan in business and industry for from 1985-92. Throughout his career, he Management Accountants (IMA) in the state of Michigan, a program that has received eight teaching awards, Montvale, N.J. In 1995 Bulloch received became the national standard for the sale written a textbook on financial account­ the R. Lee Brummet Distinguished of defense bonds, and later for regular ing, and published numerous articles in Service Award for Educators, established U.S. Savings Bonds sales. Immediately accounting journals. to provide an opportunity for IMA to following his work with the U.S. Treasury recognize accounting educators who have Department, he enlisted in the U.S. Navy, Gerard J. Tellis made significant contributions to IMA serving as a lieutenant on the staff of the and to accounting education. Ph.D., '83 U.S. Navy air corps of the Pacific Fleet. Bulloch had great affection for his After his military sendee, he returned to writes that he has been appointed to the students. On learning of his death, one Michigan City to assume management of Jerry and Nancy Neely Chair in Marketing former student reminisced, 'Jim and I the Carstens Brothers store. He was at the University of Southern California in had many enjoyable evenings together on actively involved in the community, and Los Angeles. the ride between Ann Arbor and the seiyed as president and board member of Dearborn campus, where he taught a the Michigan City Area Chamber of graduate cost accounting course. He went Commerce, and was a longtime board Lucy J. Reuben out of his way to drive me to Dearborn so member of what is now First Citizens MBA '74, Ph.D. '81 I could take the course because I was Bank. unable to take it during regular hours in has taken the job of dean of the School of Ann Arbor. His words of wisdom and Leon B. Kircher, MBA '36, passed away on Business at South Carolina State guidance helped launch me on my February 22,1995 in Encinitas, California. University in Orangeburg. She is a accounting career. For that I will always member of our Alumni Society Board of be grateful." Governors, and writes that she hopes to Richard N. Prey, MBA '37, died on April Bulloch, who held the Ph.D. degree return to Ann Arbor for the Board 12, 1995. from Ohio State University, was a meeting in the spring. She was previously member of the National Association of associate professor of finance at the John Nicholas Vlachos, BBA '50, died Accountants, the Institute of Management School of Business and Industry of August 23, 1995. Accountants, and Certified Management Florida A & M University. Accountants. He was the author and editor of the third edition of Accounting Costs Handbook.

46/ WINTER 1996 Please Tell Us About Yourself

The Black Business Students' Annual We would like to include more news about alumni in Dividend and hope you will help Conference us by providing us with information about yourself. We'd like to know where you are working and other news about you, such as promotions, new business ventures, any- APRIL 11-12 business or academic honors, authorship of books or articles, or other informauon that would be of interest to alumni. If you would like to take the time to fill out the form Spring Meeting of the Visiting Commit­ below and send it to Editor, Dividend Magazine, School of Business Administration, tee, Alumni Society Board of Governors, University of Michigan, Ann Arbor, Michigan 48109-1234, or e-mail: PFSmith@umich. and the National Campaign Committee edu, we would very much appreciate it. (meeting jointly in Ann Arbor)

APRIL 12 Name: Scholarship Dinner Degree (s) and Class Years:

MAY 17 Business Position: Corporate Advisory Board meets in Washington, D.C. Business Address:

JUNE 7-8 Home Address: Emeritus Reunion Please write below some personal or business news about yourself that we can share SEPTEMBER 20 with other alumni. Visiting Committee Meets in Ann Arbor

SEPTEMBER 27 Alumni Society Board of Governors meets in Ann Arbor

OCTOBER 18-19 Reunion Weekend

NOVEMBER 14-16 Real Estate Forum

The Regents of the University

Deane Baker, Ann Arbor Laurence B. Deitch, Bloomfield Hills Daniel D. Horning, Grand Haven Shirley M. McFee, Battle Creek Please tell us about Dividend. Rebecca McGowan, Ann Arbor Andrea Fischer Newman, Ann Arbor We have provided this space for your comments about Dividend- what you like, what Philip H. Power, Ann Arbor vou dislike, and advice to the editor. Nellie M. Varner, Detroit JamesJ. Duderstadt, ex-officio

The University of Michigan, as an equal opportun­ ity/affirmative action employer, complies with all applicable federal and state laws regarding nondis­ crimination and affirmative action, including Title IX of the Education Amendments of 1972 and Section 504 of the Rehabilitation Act of 1973. The University of Michigan is committed to a policy of nondiscrimination and equal opportunity for all persons regardless of race, sex, color, religion, creed, national origin or ancestry, age, marital status, sexual orientation, disability, or Vietnam-era veteran status in employment, educational programs and activities, and admissions. Inquiries or complaints may be addressed to the University's Director of Affirmative Action and Title IX/ Section 504 Coordinator, 4005 Wolverine Tower, Ann Arbor, Michigan 48109-1281, (313) 763-0235, TDD (313) 747-1388. For other University information call (313) 764-1817.

Dividend/ 47 Quote UnQuote

66 The most comprehensive study of insider trans­ 66 Quality now is like oxygen. It's not optional." actions was conducted by Professor Nejat Seyhun of the University of Michigan, encompassing the 20 DEAN B. JOSEPH WHITE, quoted in a story on TQM in USA Today, years from 1975 through 1994 and including every October 17,1995 open-market trade reported to the Securities and Exchange Commission by corporate insiders — more than one million tansactions in all." 66 The American Customer Satisfaction Index is newsworthy not only because of its results but also From a discussion of insider trading in the because, like any good scorecard, it provides insights "Wall Street Irregular" column by into the nature of the game itself." Mark Hulbert, published in Forbes magazine, Dec. 4,1995 From an article in the Dec. 11, 1995 Fortune Magazine discussing the American 66 Average American middle Customer Satisfaction Index managers think we've beaten the of the University of Michigan Japanese. They think we've won. Business School. (See page 24) They think we're smarter. But they don't understand the nature of the competition. The Japanese 660n mentoring -"Find one early have a proven ability to cope with and be one later." crisis." DIANA STARR LANGLEY, BBA G. K. PRAHALAD, professor of '75, CEO ofDioptics Medical corporate strategy and Products Inc., in the talk she international business, gave after receiving the 1995 quoted in a Fortune article on Entrepreneur Award from the Japanese companies Alumni Society Board of Nov. 27,1995 Governors 66 On the flat tax- "For one thing, industrial investment would grow 66A business doesn't have an 66 The whole affirmative-action inalienable right to continued suc­ at the expense of housing. For debate misses the issue of utili­ cess. There are 5 billion plus another, taxes on capital are zation — getting the most out of people in the world, and many of lower than is widely understood, the people you already have. them are taking big steps toward largely because of rapid write-offs That's the critical issue for com­ playing the capitalist game well. allowed by Washington. Hence panies today." India may be poor, but it has 150 the potential bang is likely to be million people who are solidly smaller than advertised." TAYLOR COX, associate professor middle class and well-educated— of organizational behavior and JOEL SLEMROD, director of the human resource management, that's twice the population of any Office of Tax Policy Research European country." quoted in Business Week and professor of business August 14, 1995 NOEL TIGHY, economics and public policy in in an interview published in The New York Times Entrepreneur Magazine, Feb. 1,1996 66 Just as our economic problems March 1995. are primarily home-grown, so must their solutions be sought at home rather than by scapegoating a global economy that 66 For good or ill, cities are central to our existence." offers expanding opportunities to those who partici­ pate fully in it." DENNIS ARCHER, Mayor of Detroit, delivering the Business School's MARINA V.N. WHITMAN, professor of annual Mclnnally Lecture business administration, writing an January 17, 1996 Op-Ed column in the Wall Street Journal October 27,1995

48 /WINTER 1996 °ti with you, but men

•^ SrencLoii Prancis

low worked hard to accumulate your retirement assets. Why bequeath them to Uncle Sam? • It's uncomfortable, but true: unless you plan carefully, up to 80 percent of your retirement assets could go to the federal government. • The alternative: give the same retirement assets to the University of Michigan Business School. Your estate pays little or no tax. Most or all of those assets go to the School. And you decide how to spend your hard-earned dollars. • Plan carefully. Bequeath wisely.

For more information, on planned giving of retirement assets or on planned giving in general, please return the attached reply card. Or call Ellen Abramson of the Business School Development Office: (313) 763-5775. And consult your legal and financial advisors. Office of Alumni Relations University of Michigan Business School NON-PROFIT 701 Tappan ORGANIZATION Ann Arbor, Michigan 48109-1234 U.S. POSTAGE PAID ANN ARBOR, MI Address Correction Requested PERMIT NO. 144

Dow Chemical Company Gives $500,000 to CEMP

$500,000 commitment for A program support and for student financial support has been given by the Dow Chemical Company to the Corporate Environmental Management Program (CEMP). A check for $250,000 was presented to Stuart Hart, director of CEMP, by Robert L. Wood, vice president of polyolefins, elastomers & SARAN products at Dow Chemical. During his wmam visit to the School, Wood also met with several CEMP students to hear —• 1 w&> about their work in the CEMP pro­ gram, including the projects they had w n completed in summer internships. ^ The Corporate Environmental Management Program was jointly launched in 1992 by the University of Robert Wood, vice president of the Dow Chemical Company (right), meets with students Michigan Business School and the in the Corporate Environmental Management Program during a visit to the Business School of Natural Resources and School in December. Wood was at the School to present a check representing the first installment of Dow Chemical's $500,000 commitment to the CEMP program, half of Environment. It is designed to which will go to support scholarships for CEMP students, and the other half of which develop leaders — executives and will be devoted to program support. Pictured left to right are Stuart Hart, director of managers, whether they work in the CEMP; Carey Jones and Jeff Bernicke, both CEMP students; and Wood. private sector, for government or for an environmental non-profit agency expertise to keep their enterprises program leading to both an MBA — with the skills and knowledge afloat and to confront thorny and a Master of Environmental necessary to create environment­ economic issues inherent in most Studies. ally and economically sustainable environmental problems. Half of the Dow gift will go to organizations. Students in the CEMP program are endowed scholarships for CEMP Business leaders must consider the well-versed in both management students, and the other half will be environmental impact of their deci­ methods and environmental science. devoted to program support, such sions, and environmental leaders They may take individual courses or as course development, research, need business savvy and economic enroll in an integrated, three-year guest speakers and visiting faculty.