COMING HOME THE LONG AND WINDING FOOD TRUCKERS UNITE DEAN PETER RODRIGUEZ ROAD TRAVEL JOINS THE SLOW FRIENDLY COMPETITION AMONG PAGE 18 REVOLUTION PAGE 22 OWNER-CHEFS PAGE 32 RICEBUSINESS MAGAZINE OF THE JONES GRADUATE SCHOOL OF BUSINESS AT RICE UNIVERSITY FALL 2016
THE EMERALD CITY How the greening of Houston is transforming the way we live SUMMER SCHOOL
Jones EdGE added a new opportunity to its portfolio this summer as first-year students embarked on a two-week academic seminar in Vallendar, Germany. The WHU* European MBA Summer Institute set the stage for Rice Business students to gain targeted and compact insight on business in Europe, as well as engage with international faculty and MBA students from around the world. Combining coursework, case studies and excursions to successful German companies, the summer institute — titled, “The Changing Environment for International Business in Europe” — was the beginning of a new partnership between Rice Business and WHU. Our students attended tuition free and will host an exchange student this fall.
*Wissenschaftliche Hochschule für Unternehmensführung, Otto Beisheim School of Management
GERMANY Jones EdGE FALL 2016 RICE BUSINESS contents Rice Business, formerly Dean Jones Journal, is published Peter L. Rodriguez semiannually for alumni and friends by the Jesse H. Executive Director Features Jones Graduate School of Marketing and Communication Kathleen Harrington Clark Business. Current and back 16 Coming Home issues of the magazine are Editor Dean Peter Rodriguez available online at Weezie Mackey business.rice.edu/RB. 24 The Long and Winding Road Design Director Travel joins the slow revolution Bill Carson, Bill Carson Design Change of Address? New Job? Creative Director 26 The Emerald City Update the online directory Kevin Palmer How the greening of Houston is with your new contact Associate Director transforming the way we live information at Intellectural Capital business.rice.edu/alumni. Claudia Kolker 32 Food Truckers Unite Friendly competition among owner-chefs Graphic Designer Comments or Questions? Eduardo Martinez We’d love to hear your 36 Business Jargon thoughts about Rice Web Specialist How to not communicate effectively Business. Send an email Michael Okullu to Weezie Mackey, editor In this issue and associate director of Social Media Specialist communications at Liana Lopez [email protected]. 6 Rundown Contributing Writers Lynn Gosnell Mary Lee Grant 1 2 Impressions Jennie Latson Weezie Mackey 16 Toxic Brew Sarah Viren Excerpted from Rice Business Wisdom Allyn West
Contributing Photographers 42 Wrap Up Jeff Fitlow Hargreaves Associates 46 Welcome to the Party Roger Janik Excerpted from Rice Business Wisdom Tommy LaVergne Kevin Palmer Alaina Schuster Julie Soefer PURPLE RAIN. Cover Illustration McNair Hall at night bathed in the Andy Dearwater lightshow from the fountain on Jamail Plaza. Printing Chas. P. Young Co.
2 RICE BUSINESS 3 FALL 2016 that I had grown too attached to the Brand Launch Week FROM opportunity to endure not securing it. THE Now that I’m here I can happily By the Numbers DEAN share that this job is a dream come true for me and my family. We get to live, work and play in a fabulous, diverse and friendly city. We can 30’ x 40’ banners wrapping Rice stadium enjoy the city’s arts, sports, various cultures and the best food scene in the country. We are adjusting 4 to the warmer weather and taking 66 advantage of all that being a part of Rice Business Wisdom articles new dean Rice offers, like the football team’s home opener against Baylor and the tailgate party with more than 400 alumni, friends and family attending. 172,705 Over the first month of the social media impressions1 academic year I made presentations to each of the classes of students (both 2017 and 2018) and the people at Friday Night undergraduate business minors, Lights tailgate party to the staff, faculty, alumni, alumni 444 board, Jones Partners and Council of By the time you read this, I will have Overseers. In this organization, like completed just a bit over 90 days at all others, it’s the people that make it 3,300 Rice and the business school. So great and make it special. Listening 1,800 uses of Snapchat much has happened in this short to them, I learn something new about Rice Business T-shirts geofilter time, including the introduction of Rice Business every day. our Rice Business nickname and To all of those I’ve met, I say the national and global launch of with conviction, you are now and Rice Business Wisdom, our online always will be part of the Rice ideas magazine that makes faculty Business family. We take family research easily accessible — in seriously. Your education and your your life and on your phone. Rice degree are paramount to us. As a native Texan I grew up The foundation of that degree always knowing Rice and like to relies on the faculty in your quip that Rice is the school no one classrooms and the research got into. What I mean is, Rice has a they produce. By introducing hard-won and deserved reputation RiceBusinessWisdom.org along with for admitting only the smartest our new brand, we’ve created a way students, delivering intellectually to bring that research to a broader demanding courses and cherishing audience in a lively, quick-to-read top-quality, leading-edge research. package, and it’s going to help you Very few universities can rightly change the world. boast such a reputation. Knowing The increasing energy I see in that a dean’s position at a top school McNair Hall and across campus doesn’t often become available, I sets the stage for big things to come was thrilled to have the opportunity for Rice Business. And we’re just to interview at Rice. Throughout getting started. the process my only concern was — Peter
4 RICE BUSINESS 5 FALL 2016 Faculty Promotions Amit Pazgal, Friedkin Professor of INVESTITURE Management (Marketing) rundown Scott Sonenshein, Henry Gardiner A ROUND-UP OF NEWS FROM RICE BUSINESS AND BEYOND Symonds Professor of Management
• Cisco participated for the first time this year with three Alex Butler Internet of Everything challenge prizes: $100,000, $25,000 and $10,000.
• Since the beginning of the competition, Jerry Finger presented the second place prize. This year, in his honor, the $15,000 prize was increased to $50,000 and got the support of the Anderson Family Fund.
• The GOOSE Society award went from $250,000 to $300,000. “Accounting sets the sense of • Rice’s Brown School of Engineering gave $25,000 towards trust between all the parties. “Discussing and debating my a Tech Innovation Prize, a first for the school. I find that a great value that I ideas with professors in the can add to the world.” Jones School hones my ideas • The OWLS Investment Group went from a $100,000 into specific and testable investment to $280,000. Giray Ozseker, Rice B.A. Economics ’16 MAcc ’17 questions.” • The biggest increase in prize money this year came from Lizzy Berger, Ph.D.’16 The Indus Entrepreneurs. TiE went from $50,000 to five “I was able to apply the knowledge Assistant Professor of Finance, Johnson Graduate prizes totaling $370,000. and skills … to re-negotiate a School of Management, Cornell University 70 percent increase in my next contract which more than returned the investment I made in the course.” Graduate Certificate in Health Care Management Executive Education Dr. Ronald Andrews, Physician/Owner Pediatric and Internal Medicine Associates
Rice Business Plan Competition Gala at the Hilton Americas in downtown Houston. 8 RICE BUSINESS 9 FALL 2016 rundown A ROUND-UP OF NEWS FROM RICE BUSINESS AND BEYOND tweetsnappost |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| “Very excited for the launch of #RiceBusiness!” #whereyougetyourmbamatters What’s in a name? -@affairofcharact
When Wild Turkey announced that actor Matthew McConaughey would take on the “...We celebrated the launch of the #RiceBusiness brand and the role of creative director for the bourbon company, marketing professor Wagner unveiling of the #RiceBusiness- Kamakura weighed in with Inc.com. Wisdom site. You know it’s a party when there’s an ice sculpture Businesses should not underestimate the “The day a celebrity contract is “We want to create a involved!” -@alainadale deeper, psychological value of a celebrity announced, there’s usually a bump in persona, or schema, endorsement. According to “schema the stock price [of a company]. That’s and we create our “I attended #RiceBusiness alumni theory,” which holds that all knowledge what investors believe. But it does not event tonight. I’m impressed with is organized into units, consumers often necessarily mean that the value of a persona by the brands new dean @profp_rod and am purchase products according to the image firm has gone up,” he explained. we believe form it,” excited for the direction the school they wish to project in public — whether says Wagner Kamakura, is headed”-@brandonbaudin or not that image is actually true. Investors would do better not to “overreact” the Jesse H. Jones to the news of an endorsement, just as Love my new life in Rice!!! ” Professor of Marketing “ McConaughey’s association with a liquor they’re often advised not to overreact to a #ricebusinesswisdom brand is especially meaningful, inasmuch negative piece of news. Consider, too, at Rice University in #ricebusiness as it’s often harder for customers to that a celebrity — like a political candidate Houston. For example, -@yiyangbonnie determine the quality of pricier alcohol. — may one day make a gaffe, or fade from “someone who is liberal The product, Kamakura explains, is the limelight, which could negatively “experiential.” impact the companies they’ve become tends to read the New “When you think of Rice associated with. York Times, drive a Business, you think of the “These are the services and products Volvo, and drink lattes. immense possibilities” where you can only judge quality Then there’s the cigar #RiceBusiness -@profp_rod after you’ve paid for it,” he says. “For experiential groups, you need to rely on chomping, Mercedes- some source of information,” such as a Benz driving, Fox famous endorsement. News watcher.”
Still, Kamakura questions the long-term economic impact of signing a celebrity partner.
alright, alright, alright
10 RICE BUSINESS 11 FALL 2016 “ My choice to earn an MBA “Rice Business Board Fellows was one of the main reasons I chose to attend i mpressions was very deliberate. I had Rice. I remember thinking what a unique and amazing opportunity it would ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| to consider my family in the decision, and I needed a pro- be to help further a cause I care about. As Board Fellows president, it has gram that would complement been a truly heartwarming and rewarding experience to share my vision, my career. Reputation was and expand the school’s reach to servemore nonprofits.” important so I looked at a lot —Joey Ammouri, MBA for Professionals, Evening of programs. When I came to the Rice campus and met with admissions, I got the sense that this felt right. I wanted to have the full experience. I was sold.” — Nadia Bollinger, MBA for Professionals, Evening
An IT supervisor at ExxonMobil, As a child of immigrants from Nadia Bollinger ‘18 has worked for Nazareth, Joey Ammouri ’17 carries the energy company 12 years — with him their drive for success, and since she graduated from Texas selfless passion for giving back and A&M. She is used to going to school being involved in the community. while working, having earned an Along with his position as industrial M.S. in IT Project Management from sales manager at GE, busy social UH, but that was before she married and travel schedule, and passion and had her daughter. Since then for running and fitness, Joey is also everything has changed and her heavily involved with Big Brothers priorities have shifted. Big Sisters. He naturally found Rice Business Board Fellows to “I want the best life for my family. be the perfect fit when he started An MBA made sense.” The self- business school. Joey was placed described Pakistani-Canadian- with the Positive Coaching Alliance, American wants to be involved which partners with youth sports beyond the classroom, too. She’s got organizations to help kids become her eye on the finance club, NAWMBA “Better Athletes, Better People.” and the Wright Fund. No matter how As Board Fellows president, he she gets involved over the next two hopes it will be for others what it’s years, she says, “I feel like I’m at the been for him — a prominent part of right place at the right time.” his graduate education.
13 FALL 2016 WHAT ATTRACTED YOU TO WORKING of the football season, using social alumni WITH THE SUPER BOWL? LaMecia: media broadly and a number of events Chris: First of all, it is the biggest event of I am so to connect businesses, volunteers ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| the year. The eyes of the world are turned impressed with and philanthropic organizations. Our to wherever it is. My prior work with the the innovation of partnerships with local media bring a City of Houston made it a natural fit. people Super Bowl experience to the Houston in this region … We also have the cooperation LaMecia: I’ve always loved sports community. of NASA beaming down the ceremony. and had a deep desire to work in the You don’t have to community. When I saw the impact it go to La Mecia: We have countdown clocks in would have in the community, getting Silicon Valley the airport and Discovery Green … We involved was a no-brainer. to look for are also promoting on social media with solutions that hashtags to get people involved in the WHAT’S A TYPICAL DAY ON THE JOB? work. conversation … We’re using Snapchat, LaMecia: It is a blend of working Twitter, Instagram, Periscope with people throughout the and Facebook. community, local business owners, NFL contractors, non- ANY SPECIAL CHALLENGES profits and other constituents. FOR WOMEN WORKING IN THE There are 10 days of events SUPER BOWL? before the Super Bowl we have LaMecia: It is not an issue of to prepare for, too! gender but of whether you are a subject matter expert. I Chris: There isn’t anything close don’t feel there is anything I am to typical. It is controlled chaos not prepared for, and no one … We have two clients, the questions my gender. NFL and the City of Houston. I am working with our partners WHAT IS TOUCHDOWN in government, mostly at the HOUSTON? local level but also at the state level, Chris: LaMecia: It is a $4 million grant focused making sure agreements are in place This is an on three areas of funding: education, and locked down. opportunity to community enhancement and health, reintroduce spanning 11 counties and all ages. HOW DOES WORKING FOR THE SUPER ourselves to BOWL COMPARE TO WORKING FOR WHAT ARE THE ECONOMIC BENEFITS THE MAYOR? a global THAT THE SUPER BOWL BRINGS TO Chris: It is actually very similar. What I audience … just A CITY? do here is make sure everyone is on task announcing Chris: It is perfectly reasonable to Super Stars and getting done what needs to get done. ourselves as recognize there is a material economic We depend a lot on partners in local a wonderful benefit to communities that host these How to play offense and defense in the Houston Super Bowl government, and I still get to talk with my place to come games. Whenever we do estimates of colleagues from the city. Communicating, visit and take a economic impact, we try to understate. Two alumni leading the Houston Super Bowl Host Committee tell us about the excitement, stress trouble-shooting, decision-making — business risk. and professional growth that comes with planning one of the nation’s biggest sporting events. many of the skills are the same. LaMecia: The grants that come with the Chris Newport (’13) is executive vice president, chief of staff. He was former chief of staff for Mayor Super Bowl can bring major change. You Annise Parker. LaMecia Butler (’12) is director of community relations. Previously, she led community STRATEGIES FOR PUBLICIZING THE can’t underestimate the value of what a relations for the San Francisco Bay Area Super Bowl 50 Host Committee. SUPER BOWL? grant can do to transform a business. Chris: We are launching with the start — By Mary Lee Grant
14 RICE BUSINESS 15 FALL 2016 “Why hire a lawyer,” a longstanding Kenyan joke corrupt country’s market. In Eastern Europe- goes, “when you can buy a judge?” an and former Soviet economies, for instance, The same question can be asked in coun- the higher the corruption level, the more likely tries from Africa to Asia and from Europe to it is a global international firm will invest the Americas, where government corruption through a joint venture, with local partners, so taints life that citizens can feel there’s little rather than a wholly owned subsidiary. to do but turn to grim humor. But government Another approach: rigorous internal corruption also brews trouble for foreign firms codes. Honeywell, for example, unequivo- Toxic Brew that operate in these countries. cally forbids bribes and supplies employees Rice Business dean Peter Rodriguez and a with cards bearing ethically driven questions team of coauthors decided to take a closer look they have to ask themselves in ambiguous Based on Research By Peter Rodriguez at this dynamic, assessing what the direct and situations. indirect costs of corruption really are for mul- Firms can also reach out to communities tinational firms, and proposing strategies they where they hope to do business. Hope Group might use to deal with it. donated textbooks to 17 million students The findings are timely. Foreign direct in China with the aim of brightening their investment has leaped in recent years, most reputation. The results of this strategy tend to dramatically in big emerging markets such as be mixed, though, since gifts to communities China, Brazil, Mexico, Indonesia and Poland. or institutions don’t much impress rapacious The definition the scholars used in their re- officials out for themselves. search was simple: abuse or misuse of govern- International agreements and norms are mental power for private or personal gain. Yet additional weapons. In Kenya, one of the more corruption actually varies. In some places it is promising examples of the global approach, predictable, in some it is arbitrary, and in some it is now slightly harder to buy a judge than a mixture of both. it was a decade ago. In 2007, after a wave of Predictable corruption pervades the very political bloodshed, a coalition government tissue of well-structured, stable governments, launched a huge judicial reform funded by and in a way is easier for foreign firms to man- Kenyans, donations from Germany and the age. At least they can expect the services paid United Nations, plus $120 million from the for. Under arbitrary systems such as post-Com- World Bank. Governmental munist Russia, there’s no way to weigh costs Success has ebbed and flowed, but and expectations. Officials may demand bribes, data-based decision making, better wages Corruption Is Poisonous but promised services still will not be delivered. for judges and a struggle against corruption In either case, costs rise further because firms culture are among the current gains. For Foreign Firms can’t rely on institutions such as courts No one anti-corruption strategy is a to enforce contracts. panacea. But just as international firms use The direct cost of both types of corrup- multiple business strategies, the authors tion is clear: money handed out for bribes and argue, firms should try a mix of antidotes to kickbacks. But firms that work with corrupt corruption. Considering the damage it does regimes also quietly squander vast resources to foreign firms and host societies both, wrangling red tape and two-stepping with corruption is too toxic a brew for a healthy organized crime to buy protection. business to swallow. Then there are the indirect costs. Firms often hemorrhage huge sums investing in lob- See RiceBusinessWisdom.org bying, influence and currying favor. In some Chinese provinces, for example, foreign compa- Peter Rodriguez is dean of the Jones Graduate nies are openly required to offer “profit-sharing” School of Business at Rice University. with local government. To learn more, see Jonathan P. Doh, Peter What’s a foreign firm to do? One possibility: Rodriguez, Klaus Uhlenbruck, Jamie Collins, avoid the mess altogether. That’s what Procter and Lorraine Eden. “Coping with Corruption & Gamble did in Nigeria, where it shuttered a in Foreign Markets.” Academy of Management Pampers plant rather than bribe customs. Executives. (2003, Vol. 17), No. 3. Firms also can alter the way they enter a
16 RICE BUSINESS 17 FALL 2016 orn and raised in Texas, Dean Peter Rodriguez PETER returned this summer with his family after 13 RODRIGUEZ: B years at the University of Virginia’s Darden Business School where he was senior associate dean COMING for degree programs and chief diversity officer. He sat down with Rice Business to talk about how he HOME got here and what exciting things lie ahead.
On economics On working for JP Morgan Chase I went to college and thought I was going to be a I had an opportunity to work in banking in doctor. But I didn’t like it nearly as much as I liked Houston. It was a great experience to be able thinking about the economy and organizations and to learn about business, organizations and how history. people work. It made me a much better economist because I thought about things in a way I never When I got into those classes it was singing to my could have had I not worked with people, tried soul, and I just knew that’s what I wanted to do. I things, failed and brought those things back into always had a tinkerer’s mindset and an idea that the academic interests that I’d always had. I wanted to be someone who learned about how things worked. That’s what drew me to economics. On working in administration I don’t think anybody ever knows when they’re On a tinkerer’s mindset going to do something like change from being an If I hadn’t been an economist, I would’ve definitely academic to being an administrator. At some point been an engineer. When I was a little kid we had a you get the opportunity to lead an organization. lot of devices back then, and I would always tear Something speaks to you and you say I really want apart televisions, tape recorders, radios, walkie to accomplish this. I enjoy working with people in talkies just to see what was inside and to see how that way. they worked. I’ve always had that interest. I’m still very big into technology. On diversity When you think about diversity, it means lots of On grad school things to lots of people. It really is the way people Going to graduate school was never much of a live and work together — how they’re treated and question. I expected that’s what you did. I wasn’t how they feel within an organization. And it’s the satisfied with what I knew. My mind was always acknowledgement that we’re all different in many back at those fundamental questions. It was a ways, our ethnicity, our race, our gender, our thrill to be able to go back to graduate school and religion and each of those ways has to be alive in just indulge in learning in that deep way. the organization. You have to be able to come to work and come to school and bring and be your whole self and feel valued and respected.
18 RICE BUSINESS 19 FALL 2016 On business school that you have in a big city is extremely exciting for I think people wonder if they’ll retain their value us. It’s the sports teams, the food, the culture, the proposition. I’m sure they will, but they’ll have diversity. I’d forgotten about the heat and humidity to adapt just like everywhere else. I think people and the scale of the city when you’re driving in. If look at the world at large and say, things are you’re from a small town, you think, this is a big changing rapidly. Are you keeping pace? Are you place. Everything is happening. There are shops still adding value? everywhere, restaurants, people are moving about. It feels energetic and exciting. And it’s going to be a big change. On your research I’ve always found the topic of corruption fascinating. What you see there are opportunities On social media to get a window on the world. Corruption happens What’s great about social media is being when institutions, ambition, organizations and connected. I feel more connected to people who individuals come together. Very often they want are far away from me than I ever was before. I to achieve the highest goals: future development, have students who graduate and it used to be a greater investment returns, all these good things fond farewell and I hope to see you in 10 years but but something goes awry. It’s a human error that now we keep conversations going. I feel like I’m takes place, but it takes place within complex always part of their lives. And that has made being systems. It’s fascinating. You can’t understand a professor even more enriching. corruption without understanding individuals, This interview has been edited for space and clarity. society and organizations all at the same time. For more, http://business.rice.edu/about/letter-dean.
On Texas and Houston We’ve had 13 fantastic years in Virginia, but we’re thrilled to be coming back to Texas. There are so many things here that we love and miss. All the life
The dean captures the atmosphere at Rice Business tailgate party.
On photography On teaching I take a lot of photographs of my kids, and they I will definitely teach a class once I get settled. I don’t see it the way I do. They see the technical haven’t decided exactly when and where. I need skill or they see the setting, I see them looking to get a little bit more of my bearings, but it will back at me and I think, I remember that moment. be economics related. I hope to do some field I remember when you were looking at me. And teaching. That’s some of my favorite work and that’s a memory that’s perfectly captured. what I’ve been doing intensively for the past five years. Rice students are phenomenal, and I can’t wait to be in the classroom with them. At the game with his boys.
20 RICE BUSINESS 21 FALL 2016 When Chris Bolding took her family to Panama on a recent vacation, she made sure they stopped by the famous canal. But after that, she, her hus- The band and their three teenage Long and kids did their best to stay off “Part of the beaten path. They traveled my goal, through the mangroves with especially Winding Road with my local guides, wandered into a kids and bat cave where the water went my family, up to their chests, visited a TRAVEL JOINS THE SLOW REVOLUTION is that I want them little-known coffee plantation, By Sarah Viren to be open and spent a long weekend on a to new things and to see remote island without any cars the world that they could see or — as from other perspectives.” they soon learned — ATM ma- chines. At one point, Bolding’s husband embarked on a four-
hour boat ride to another island to get cash, but even that inconvenience was worth it, says Bolding, a Rice Business graduate (’98) with more than 18 years of experience working in the travel industry.
22 RICE BUSINESS 23 FALL 2016 hough Bolding probably wouldn’t have cuisines, and in eating communal meals. Their for us today I think, the most relevant front in the has made travel more accessible to more people, classified her vacation as such at that time, fervor has since ignited a whole host of similarly slow revolution.” and also much quicker. her Panama trip is a good example of a rel- “slow” movements: slow cities, slow parenting, In many ways, though, slow was always the Ironically, technology is also what is now Tatively new tourist trend known as “slow travel.” slow art and even slow sex. way we traveled — at least until recently. Some allowing tourists to return to their slow traveling Rather than flying in and out of a tourist hot spot The driving force behind much of this is of our most famous travel writers and adventur- roots, so to speak. Bolding remembers a family for a rushed week of must-see sites, slow travelers a sense that, as we’ve become more time-efficient ers moved slowly out of necessity. Marco Polo’s vacation to France when she was in high school try to live by that age-old adage about the journey and technology-drive, we’ve also lost track of trips to China by boat and camelback later and her mom lugging around a big book of bed trumping the destination or experience being what makes us happy, healthy and — well — inspired other adventurers including Christopher and breakfasts listings—the only way then to find more important than acquisition. They advocate human. In Carl Honoré’s book In Praise of Slow- Columbus. Meriwether Lewis and William Clark accommodations with a more local touch. taking the scenic train through the Alps, spending ness: Challenging the Cult of Speed, the self- spent more than two years, by horse and by foot, Now, as Constantine Hallax, another Rice a month walking the Appalachian Trial, or renting declared “globetrotting ambassador for the Slow exploring the territory west of the Mississippi. Business graduate (’01) working in the tourism a house in the French countryside for a week and Movement” describes his own awakening as the In one journal entry from that exploratory industry, explains, internet upstarts like Airbnb getting to know the locals and local cuisine. moment when he found himself almost buying a trip, Lewis almost sounds like a modern-day slow make staying with—or getting a ride or buying
“The key to slow travel is a state of mind.”
Or as Bolding, now director of business collection of one-minute bedtime stories to read traveler espousing the joys of taking one’s time a meal from — a local much easier than it was development at Sabre Travel Network, likes to his children at night. while moving through the landscape. in the past. to tell her children, “The fact that you saw the “These days, the whole world is time-sick,” “The buffaloe (sic) Elk and Antelope are so “Everyone is seeking uniqueness in travel,” Sistine Chapel or the Panama Canal might get Honoré writes in the book’s introduction. “We all gentle that we pass near them while feeding, he says. “And the technology that exists today one mention in a conversation, but those stories belong to the same cult of speed.” without appearing to excite any alarm among can provide you with that.” about the people you met or the food you ate His solution, of course, is to slow down. them,” he wrote. “And when we attract their at- Hallax, who previously worked for Traveloc- or the experiences you had are the ones you’ll And it’s a message that’s found an audience. tention, they frequently approach us more nearly ity and is now vice president of business develop- tell again and again.” Honoré’s book has been translated in to dozens to discover what we are.” ment for TripCase, a travel application developed As a movement, slow travel has its origins of languages since it was first published in 2004 Things only began to change for travelers as by Sabre Travel Network, says traveler review in the slow food revolution, which began in the and was later called the Das Kapital of the Slow technology advanced: the train came along and sites are a good example of technology aiding late-1980s in Italy in response to the first McDon- Movement by the Financial Times. Though the then the automobile and finally the plane, and slow travel trends. By allowing tourists to read alds opening up in Piazza di Spagna, Rome. Slow book didn’t address slow travel when it came along with these new modes of transportation and share opinions about trip itinerary, sites foodies believe in local farming, in preserving out, Honoré later claimed that this branch of the came the rapid construction of highways and ho- like TripAdvisor and Gogobot can give potential traditional food preparation customs and movement was “the most exciting and, certainly tel chains and fast food restaurants, all of which travelers the confidence to go off the beaten path
24 RICE BUSINESS 25 FALL 2016 or stay at a nontraditional lodging that they might off the beaten path. This means that slow travel Slow travel is still more popular in Europe in the Woods by Bill Bryson, about traveling the have avoided — out of fear or lack of knowledge can often also equal more sustainable travel. than the United States in part because the Appalachian Trail, also indicate that the old- — in the past. And on this front, the slow traveler has a movement began there, but also, as Dickinson fashioned pilgrimage — a staple of slow travel Apps, Hallax says, are also making it easier whole host of resources at her fingertips. Or- explains, because the infrastructure and long —might be finding new life in the United States for travelers to plan more complicated trips with- ganizations like the International Ecotourism holiday traditions in Europe are more accommo- along America’s trails. According the Appalachian out the assistance of a travel agency or local con- Society help evaluate and publicize legitimately dating to the slow traveler. Trail Conservancy, more than 4,000 people hiked tact. There are apps now to help travelers quickly ecological trips and locales while private sector “It’s not uncommon for Europeans to take the entire 2,180 miles of that trail in the 2010s, up figure out the exchange rate, learn key phrases in companies such as Expedia are beginning to offer a one month holiday which enables people to from about 1,500 hikers in the 1980s. The USDA a new language, trace one’s wanderings through “green” search options for those looking to find take time travelling,” Dickinson notes. “It is more Forest Service reports that both day hiking and an unknown town or city, or coordinate lodging, sustainable travel or lodgings options. difficult to invest in slow travel when your holi- camping are much more popular now than they food and transportation plans. Money, however, can also be a driving factor day is shorter—it limits how far you can go.” were in the 1980s, with about a third of all Ameri- Hallax’s company recently developed an app for those opting to travel slowly. Though slow Still, that doesn’t mean Americans are sad- cans saying they enjoy hiking and a quarter feature called SafePoint for TripCase that allows travel is not always cheaper, it can be, and those dled to fast travel forever. Bolding sees the saying they’ve recently camped.
“ The fact that you saw the Sistine Chapel … might get one mention in a conversation, but those stories about the people you met … are the ones you’ll tell again and again.”
employers to monitor world events, and if any- on a budget might find slower forms of tourism recent popularity of riverboat tours — especially Advocates of slow travel, including the travel thing happens — from a terrorist attack to a flood more appealing monetarily and philosophically. as an alternative to the cruise ship vacation — writer Nicky Gardener, author of the “Slow Travel — to locate and contact employees traveling and The great American road trip is said to be making as one example of a slow travel trend in the Manifesto,” also point out that trips don’t have working abroad or domestically. a comeback in recent years for that very reason. United States. And, she says, the fact that many to be long or even require that much distance “The world is becoming more dangerous,” In a recent survey by AAA, road trips were Americans are now adapting to more overlap to count as “slow.” In her manifesto, published Hallax notes. “But technology and these other the number one vacation choice for Americans, between their work and home lives means that at the travel web site Hidden Europe, Gardener tools will help mitigate some of these concerns.” followed next by trips to national parks. Sarah lots of potential travelers, herself included, are writes that one of the best ways to travel slowly is The ecotourism movement, and environmen- Schimmer, a spokeswoman for the organization, finding ways to take longer vacations — with the to start at home. She encourages would-be-slow talism in general, has also had a hand in popular- said the slow pace of a road trip is appealing for idea that they’ll do a little bit of work here and travelers to walk or take a bus one day rather izing slow travel. As Janet Dickinson, professor nostalgic reasons but added that there is also there while traveling. than driving or to check out a church or cafe of tourism at Bournemouth University, explains a practical side to travelers’ decisions to drive “I just took a 16-day trip, and I said, Two they’ve noticed in their neighborhood but never in her book Slow Travel and Tourism, traditional instead of fly. mornings on the trip, I’ll answer some emails; had the time — or perhaps never made the time modes of “mass travel”—via airplane, staying in “What we are seeing is that more people are I’ll do some work.” — to visit in the past. chain hotels, etc—tend to leave a larger carbon taking road trips and are being inspired to take The popularity of travel memoirs like Wild “The key to slow travel is a state of mind,” footprint than embarking on a pilgrimage, say, or road trips because gas prices are so low,” by Cheryl Strayed, which chronicles her 1,100- she writes. staying two weeks in a remote village somewhere Schimmer notes. mile trek along the Pacific Crest Trail, andA Walk
26 RICE BUSINESS 27 FALL 2016 The Emerald City “Houston doesn’t look like Houston anymore.” How the — Mimi Swartz greening of Houston is transforming the way we live
uffalo Bayou Park feels were inaccessible and underuti- its investments in places where like a perfect public space. lized. In 2011, with a comprehen- people can gather to relax, play BCompleted in 2015, the re- sive master plan by SWA Group in and exercise. Charles Birnbaum, design of the park along 2.3 miles hand, Buffalo Bayou Partnership president and CEO of Washington, of Houston’s primary bayou incor- led a $55 million redevelopment, D.C.-based The Cultural Land- porates 10 miles of hike and bike which included a $30 million dona- scape Foundation, which was trails and footpaths, a dog park, tion from the Kinder Foundation, inspired to hold its annual confer- public art, gardens, bike and kayak that catalyzed its transformation ence here, writes that Houston is rentals, playgrounds. Visitors can into one of the country’s best “undergoing a transformation … tour an abandoned underground urban parks. That’s according to a at a scope and scale unseen in the reservoir and eat brunch in a 2016 USA Today reader poll. U.S. in more than a century.” glass-walled restaurant raised on But that same poll ranked Consider: The underused concrete pilings that makes them another Houston urban park even Levy Park in Upper Kirby, once feel as though they’re up among higher: Discovery Green, designed home to a few baseball diamonds, the trees. by Hargreaves Associates, came is being completely redesigned Seeing all the sweating cy- in fourth. Together, these two and reprogrammed with a $15 clists, the parents drinking coffee parks have helped to change the million investment. On the other and pushing strollers, the pedes- conversation about the city. As side of town, historic Emancipa- trians stopping to take selfies with Texas Monthly writer Mimi Swartz tion Park in the Third Ward is the skyline as a backdrop, you quips, “Houston doesn’t look like getting a $33 million redevelop- might not believe that this same Houston anymore.” Once defined ment, including the construction Photo: Hargreaves Associates park was an afterthought. The primarily by its freeways and park- of community center designed bayou had become blocked from ing lots and its “almost sensational by celebrated African-American view by invasive vegetation and its lack of convivial public space,” architect Phil Freelon. A private loved-to-death trails used — espe- as essayist Philip Lopate griped group hired landscape archi- cially in the evenings — only by in the ’80s, Houston is now being tecture firm West 8 to conceive Discovery Green diehards. Large swaths of the park celebrated as a national model for of a master plan for a Houston
28 RICE BUSINESS 29 FALL 2016 Botanic Garden. And new master “There’s such intense nership. The land where Discov- There’s no doubt they’re land around Houston’s bayous for ways might have, from improve- plans have been completed to competition for Millennials,” she ery Green is, for example, was effective: another public-private use for recreation and mobility. ments in public health to increases restore and redesign the 155-acre says. “Parks and open spaces and purchased by the City of Houston partnership was formed to lead When the project is completed in in property values to investments Houston Arboretum and Nature trails are just one more amenity in two transactions in 2002 and the way on a project that could 2020, 150 miles of trails will line in neighborhood parks. She ima- Center and the 1,500-acre Memo- that they are attracted to.” 2004 on the recommendations of be even more transformative for the bayous, connecting neighbor- gines that Bayou Greenways will rial Park. But these parks, open spaces a pair of private philanthropists. Houston than any single park: hoods to job and retail centers, have an effect on Houston similar “It’s a great time for parks and trails are not cheap. Many But the park is now managed, Bayou Greenways. Bayou Green- parks, transit and more. to that of other ambitious urban in Houston,” says Anne Olson, cities have parks departments that programmed and maintained by ways revisits a plan first devel- Beth White is president of the projects like The High Line in New president of Buffalo Bayou strain to keep up with the demand, a separate nonprofit conservancy oped in Houston in the early 1900s Houston Parks Board. “Houston York City or the 606 in Chicago. Partnership. “The appreciation of and Houston is no exception. As that raises its own money and has by landscape architect Arthur is one of the most exciting places Not only will the project spark them has grown over the years, much as the city has been recog- its own staff. Comey that called for trails and in the country right now in terms development, White says, it will and the business community sees nized for its development of these Though some critics have linear parks along the city’s major of investments the city is making transform the way the city “views more and more the economic amenities, it has been praised for argued that these public-private bayous. Funded through a $166 in quality of life infrastructure,” itself and the way it lives. This will impact that they can have.” its innovative ways of paying for partnerships can lead to inequity, million public bond in 2012 and she explains. “We’ve been doing have an impact on people wanting Olson points to new residential them. Adrian Benepe of the Trust they do allow certain parks to private fundraising — including all these pieces, and now we have to stay here. The power of vision- developments currently under for Public Land told the Houston be chosen, so to speak, so as $50 million more from the Kinder this ability to do all this connec- ary systems to make cities livable construction that are actively Chronicle: “Houston has become a to be better stewarded by pri- Foundation — work is underway tive tissue that’s going to take this places cannot be overstated. It’s marketing their proximity to laboratory of interesting solutions vate philanthropy, property tax building these trails and trans- whole effort to a different level.” extraordinary.” Buffalo Bayou Park. for park building, financing and reinvestment and other focused forming more than 3,000 acres of White is excited about the — By Allyn West management.” The predominant revenue streams. multifaceted social and economic solution is the public-private part- impacts that the Bayou Green-
Buffalo Bayou Park
30 RICE BUSINESS 31 FALL 2016 Competition Never Tasted So Good: Gourmet Food Truck Owners Band Together to Succeed
cott Sonenshein’s academic curiosity has led him to study banks, Curiosity and coincidence Several years ago, I booksellers, entrepreneurs, environmentalists, fashion, and most S was reading [a Houston recently, the complex social identities coalescing around food truck magazine], and there was a review of a couple ownership. The Henry Gardiner Symonds Professor of Management at of local food trucks. I Rice Business, Sonenshein applies qualitative and generative meth- was curious. You don’t ods to his research questions, heading into the field to collect data via think of the restaurant review column as a place interviews, careful observation and participation (think: hanging out). where you would see It’s a hands-on approach that marries the tools of social science and food trucks reviewed. I searched around a little ethnographic methods to understand how businesses work. The data and learned that they’re often points to counter-intuitive, but important, research questions. big business. Wow, I thought, here’s a nas- In the case of his recent foray into Houston’s food truck scene, cent field that’s trying to Sonenshein was curious, at first, about the special relationship be- establish legitimacy, and you’re seeing some of the tween owner-chefs and their customers. But the data soon revealed early signs of that through extraordinarily collaborative relationships. His findings from the mul- getting reviews.
tiyear project teach us some surprising ways that competitors help A couple weeks later, each other out. I was reading the Wall Street Journal, and there was this story about the University of Washing- ton kicking food trucks off its campus. Their food services company During a recent conversation in his decided that they wanted McNair Hall office, Sonenshein talked to get in on the business. about the evolving nature of They came back with their own food trucks that qualitative field research, the looked independent, but precariousness of food truck life, they were really owned and how he recently lost the 15 pounds by a large food services company. Why would he gained in the name of research.> this multi-billion dollar conglomerate be worried about mom-and-pop businesses? 32 RICE BUSINESS 33 FALL 2016 How qualitative research didn’t pan out! But what each other’s trucks, run- truck life. That sense of ers that don’t want to be premium ingredients (along with Korean Mexi- at the time of the study, works did turn out was [hearing ning errands, volunteering, identity leads to lots of part of the group — this is and so on. Because food can fusion) were one of and some went out of What you do with this about] the relationship sharing parking spots at cooperation, banding more the exception. The trucks already had an the more concentrated business. type of method is you with other food truckers. food truck venues, etc. trucks together to survive group imposes sanctions identity — namely, cheap, segments of the market Informants use the start off with a ques- One said, “We’re really (Parking spots are a big and make the market against these trucks, and inexpensive, noncreative where there were people term “food truck life” tion that motivates your friendly. We get along, issue, because the market stronger and more wel- they generally struggle. food — they struggled selling very similar to refer to the major research, but you let the we hang out. This is very has exploded recently.) coming. In the case of my for customers at first. So, products. So the idea to challenges in operating data lead you to what’s social.” That’s where the One person put it this way: research, it comes down Raising reputations one another question is, “How test the ideas in the paper a gourmet food truck. most interesting. It’s research started to It’s a constant cycle of just to the collective identity: meal at a time do [gourmet food trucks] is to locate those areas It’s a very hard industry called “grounded theory”. morph into studying helping each other out.” By forming a collective There are over 1,000 band together to create a where you might not of course — equipment … Almost every time, these dynamics between identity, you view the suc- mobile food units in different identity?” expect a theory to hold breaks down, the weather I have what I think is a competition and collabo- The power of a shared cess of the group as your the Houston area. I was up. That’s why we over- turns bad, the city puts in really interesting research ration. identity own success. particularly interested in Focusing on Korean sampled on those. place restrictive regula- question that turns out We found that these food the gourmet segment of Mexican fusion and tions. These are very either not to be the most Food truck life truck operators share a What about the food trucks, which is ex- dessert trucks The hard road of food resilient people who work interesting question I [My informants] would strong social or collec- exceptions? periencing rapid growth. People who know me tell truck life incredibly long hours. should be asking or turns elaborate on all the re- tive identity that belies Some people truly em- You’ll find people using me I focused on dessert Everyone has a profit mo- As glamorous as it might out not to be at all related markable things they do to traditional notions of body and embrace the artisanal ingredients, trucks because I love tive, this is not simply just seem on TV, my sense is to what I’m finding in the help each other out, like competition and the many collective and that’s what more chef-driven-type dessert. That’s true – I I want to do this because that most of us would not data. In general, these are tweeting to raise aware- competitive pressures of, motivates all these helpful menus, lots of creativity do love dessert. But the it’s cool. Some are doing last very long doing it. multi-year projects that ness of each other, fixing to put it succinctly, food behaviors. There are oth- in terms of the product, reality is dessert trucks quite well, some were not are very iterative. What’s important from a research perspective? Finding the right questions It’s another way of A lot of my early interest characterizing a market. was on the relationship We don’t tend to talk between the food truck about markets as being owner and the customer. shaped by a collective Was there some type identity, so it gives us a of special relationship potent window into think- or almost intimacy that ing about how relation- forms when the same ships and markets might person who is cooking unfold a little differently your food is also handing when a large chunk of it to you in the window? firms within that market But on my very first visit share a collective identity to a food truck, I realized and redirect competi- what a terrible question tion away from price and to be asking. towards group status. If you’ve ever been It’s also refreshing to see to a food truck, you see them help each other that those windows are out, not necessarily for high up, and they have personal gain, but be- plexiglass on them. The cause they embrace and mode of interaction is embody the collective. you reaching your hand To me that’s a pretty up toward the window, powerful idea. so especially for a guy This interview has been edited for space and clarity. It is based on research conducted by Scott Sonenshein, Otilia Obodaru, assistant professor of —By Lynn Gosnell like me who’s not very management, and Kristen Nault, research analyst. tall — that question
34 RICE BUSINESS 35 FALL 2016 BusinessJargon
How to optimize verbage for a robust value add — or how to not communicate effectively
36 JONES JOURNAL 37 FALL 2016 f buzzwords like “synergy,” “value add” and smiths, points out that using more or bigger words Say in the Corporate World” believes the use of buz- — we overuse and abuse certain words and phrases “leverage” make you want to go big AND go doesn’t mean you’re communicating better. For ex- zwords is driven in part by the urge to be seen as an without even knowing it.” home, you’re not alone. Few of us have the ample, in lieu of the jargony “in light of the fact that,” insider — but it has a tendency to backfire. I bandwidth for dated business jargon — and it he suggests a simple, elegant alternative: “because.” When used sparingly, of course, jargon isn’t inher- gets dated fast. By the time we’ve learned the mean- “Sometimes people who overuse corporate jargon ently evil, according to Janet Moore, the director of ing of the latest lingo, it’s already annoying to the James Weston, a finance professor at the Rice actually lose credibility,” he says. “Being authentic full-time MBA communications at the Rice Business. “gurus,” “rock stars” and “thought leaders” Business, argues that buzzwords either make simple and relatable are more and more important in lead- who likely coined it in the first place. concepts more confusing or complex concepts more ership these days. Talking in jargon hardly makes “Jargon can save time, as long as everyone in the superficial. someone relatable or authentic.” conversation understands it,” she says. “Problems Take “future proofing,” a fresh concept when it arise when it excludes listeners who don’t get it — appeared on the scene a few years ago to describe, “Generally, buzzwords like ‘global synergies’ and the So how do we rid our vocabularies of the dreaded and are too afraid to confess their ignorance.” well, pretty much what it sounds like: making like are a big red flag to me that a shallow and mean- buzzwords? It’s harder than you’d think, Sudakow something immune to the unforesee- ingless argument is about to come says. He once found himself using But a surprising number of people, able ravages of the future. my way,” he says. one of his least favorite expres- including seasoned veterans of the “Leading-edge sions, “We’ll bake that into the “The reality is corporate world, aren’t familiar with Future proofing was a game changer Then there are the insidious euphe- process” — meaning simply every buzzword — especially the on the bleeding edge, in bizspeak — leveraging of your misms, such as “let’s communicate “we’ll include it” — in a presenta- that corporate buzziest of them all, which tend to until it wasn’t. In 2013, the same year plain-English skill offline,” which Weston translates tion. The phrase just popped into jargon is used so come from Silicon Valley and spread it began popping up in Wall Street to “I want to tell you something his head because he’d heard like wildfire, Moore says. Journal headlines (for example, set will ensure that and I don’t want it to be discover- it so often. frequently, no “Barbers, Bakers and Bankers: your actionable able in litigation.” matter where you So is it worth trying to stay abreast Whose Job Is Future-Proof?”) it was “The reality is that corporate of the buzz? Or will today’s future listed as one of “The 65 Business items synergize Or the obnoxious exaggerations, jargon is used so frequently, no work, that it is proofers soon go the way of yester- Words to Strike from Your Vocabu- future-proof assets like “thought leader.” matter where you work, that it is actually hard for day’s paradigm shifters? lary Right Now” by Bryan A. Garner, actually hard for it not to rub off the author of the “HBR Guide to with your “I might punch the next person on all of us and become a habit.” it not to rub off on “Some buzzwords come and go Better Business Writing.” global-knowledge that says this to me in the face, but all of us and quickly and never reappear,” Cardon we should communicate offline You could be a regular buzzword says. “Others come in and out of Garner took the phrase to task in a repository.” about that,” Weston jokes. user without even knowing it, become a habit.” fashion every few decades like bell- tongue-in-cheek Huffington Post arti- warns Peter Cardon, an associate bottom pants. Many, like ‘synergy,’ cle, advising, “Leading-edge leverag- But for sheer superfluity of professor of management commu- ‘proactive’ and ‘win-win,’ have ing of your plain-English skill set will ensure meaning, the word “ideate” is unbeatable — literally. nication at the University of Southern stuck around for a long time.” that your actionable items synergize future-proof It won Forbes’ 2015 “Jargon Madness” competition, California’s Marshall School of Business and the assets with your global-knowledge repository.” elbowing out contenders like “leverage,” “disrupt” author of “Business Communication: Developing And some corporate cultures are more infested by and “growth hacking” as the term most abused by Leaders for a Networked World.” buzzwords than others. When Sudakow worked for Part of the problem with phrases like “future proof- startup founders, developers and marketers. a management-consulting firm, he says, he felt as ing” is that, while snazzy, they are essentially mean- “I was once coaching a manager with his public though he’d entered an Olympic competition for jar- ingless. Making anything truly future proof is, after Forbes defined the winning term as “a nonsense speaking. He used ‘at the end of the day’ at the be- gon use — “with the winner based strictly on quan- all, impossible, since no one knows what the future word meaning ‘think,’ ‘dream up’ or ‘conceive of ginning of every tenth sentence or so. In one pres- tity.” Now, as an independent consultant, he tries his will hold. an idea.’ Formerly known as ‘brainstorm.’ ” entation, he used the phrase nearly twenty times,” hardest to eliminate buzzwords entirely. Cardon recalled. “When I mentioned it to him, he Others are offensive because they’re wordier or If it irks so many of us, then, why is jargon so com- was shocked. In fact, he didn’t believe me. So, I “Not using them is what makes you stand out these showier versions of phrases that exist already and mon? James Sudakow, the author of “Picking the showed him video of his presentation so he could days,” he explains. “A client recently told me, ‘That’s are perfectly useful. Garner, along with other word- Low-Hanging Fruit… And Other Stupid Stuff We see for himself. All of us are like this to some degree why we like you. You talk like a normal person.’” — By Jennie Latson
38 RICE BUSINESS 39 FALL 2016 “We worked in teams with the staff Wining and Dining: Executive Global Forum of TWE on their marketing strategies. We used innovation and creativity works with Treasury Wine Estates techniques with our understanding of customer preferences and experi- fter nearly a year of preparation, the inaugural executive global forum debuted ences. Our team suggested having A wine ceremonies in place of wine “The Rice students worked inten- for second-year executive MBA students in Shanghai this past spring. “The motto we used, “Growing tastings as well as associating sively on projects directly related Together,” accurately describes this familiar tastes such as ginseng and to TWE’s China business. Alongside global forum experience. TWE, our jasmine with wine to differentiate them were 16 of our own employ- The collaboration with Rice Business, Treasury Wine Estates (TWE) and Robert host company in Shanghai, benefited TWE from other wineries.” Foye ’90 (president and managing director, Asia, Europe, MEA and Latin America) from our students’ analytical skills ees. One of the goals was to get a and thoughtful thinking. Our students, Alice Obuobi ’16 fresh, independent, outside view on was exhilarating. Students were challenged to apply what they’d learned over their on the other hand, got a great opportu- Assistant Professor our business challenges. Far from nity to apply what they had learned Department of Pediatrics, being purely an academic exercise, two-year program to address the meaty problems of a real company, with high-level Baylor College of Medicine in the EMBA program in a real busi- Chief of Pediatrics, Medical Director results from the week will now be employees from that company, in an unfamiliar industry, in an emerging market. ness context: the fast-growing wine of Newborn Services fed back to the company — an A+ industry in China’s emerging market. CHI St Luke’s Health Woodlands Hospital grade result for everyone involved.” This experience better prepares our This concentrated approach was the goal of Barbara Ostdiek, senior associate dean Robert Foye ’90 students for taking on greater respon- “The opportunity to bond and live President and Managing Director, Asia, of degree programs and associate professor of finance. “We wanted to push the sibilities on the global stage.” with my Rice classmates was prob- Europe, MEA and Latin America students out of their comfort zone, addressing business challenges and identifying ably the best aspect of the trip. We Treasury Wine Estates Yan “Anthea” Zhang, Ph.D. achieved something more significant opportunities in a completely unfamiliar environment. There is some shock value Fayez Sarofim Vanguard Professor of Strategic Management in seven days, than two years of proj- to the immersive experience. Our students quite admirably rose to the challenges Area Coordinator, Strategy and ects, classes and team assignments Environment Group could have ever managed. … some- served up by our faculty, Anthea Zhang and Jing Zhou, and our host, led by Robert.” how we were changed, individually and as a group, into something more The response was positive, to say the least. capable, more resilient and more thoughtful.” James Andrews ’16 President, Harbor Services
40 RICE BUSINESS 41 FALL 2016 wrap up |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| SEED BANK Youngro Lee and Abe Chu’s ’09 startup, NextSeed, helps small business- The Crowd Favorites es raise funds from A Rice MBA and his college teammate launch the first private investors — Securities and Exchange Commission-approved no stock exchange necessary. nationwide crowdfunding portal after a successful start in the Texas market. Reprinted with permission from Modern Luxury Houston, June 2016. Abe Chu ’09 and Youngro Lee, To help, they’ve also brought Photo credit: both 32, met years ago on the on fellow college teammate Julie Soefer basketball team at Simons and tech whiz Bob Dunton. Rock College. “We were the “A lot of investors focus on nerdiest, most unathletic striking gold, getting in on the basketball team you’ve ever next Facebook early,” Chu witnessed,” Chu remembers, says. “That’s exciting, but we laughing. also want tools to support restaurants, bars and gyms — Now, after more than a decade local businesses that we go apart — Chu pursued an MBA to and use daily.” at Rice, while Lee became an international private equity So far, it seems to be catching attorney jetting from New on. Success stories include York to Moscow to Shanghai South African restaurant Peli — they’ve reunited, and last Peli in the Galleria, and up year they launched Texas’ first next are a luxury flotation spa major crowdfunding website, and an EaDo gastro pub. NextSeed. “It’s a new option — off of The portal, which functions Wall Street — that lets people like a small stock exchange, reinvest in Main Street.” allows individuals to invest in Mom-and-pops rejoice! private companies. It’s already nextseed.com funneled more than $1 million into local independent busi- nesses, and with new federal legislation passed just last month, it’s moving into the national market as well. “We are the first portal to receive nationwide approval by the U.S. Securities and Exchange Commission,” Chu says, “and we’re now focus- ing on projects across the country.”
42 RICE BUSINESS 43 FALL 2016 wrap up Grasp Local Issues. Dress Appropriately. ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Research the country’s Many business meetings abroad current social, political and call for formal business attire. Absorb the Culture. economic situation. Do your research and match the Going Global Try getting a feel for the formality of the locals. Janet H. Moore, director of Full-Time MBA local culture. Your business Understand what Communications, says if you work abroad — counterparts will appreci- topics are current Be Authentic. or on projects with global aspects — you may ate that you explored their Really, be authentic. And if you make a enhance your chances of success by building there. gaffe, simply apologize. rapport across cultures. When you find yourself local sites and learned heading out of the country for a business trip, about their culture. Greet Strategically. Ask for guidance to ensure that you follow expected protocol. consider these quick tips: Handshake strength varies depending on culture, so adjust your grip strength to match your local counterpart’s. Space Yourself. In some countries, hugs or air kisses on the Physical space between people cheek are the norm, while in others, even a may vary dramatically internation- ally. If you find yourself standing handshake across genders is prohibited. awkwardly close to a foreign col- league, it may be that he or she is Practice Pleasantries. Gift like a Pro. following local cultural norms. Before your trip, try to learn In some cultures, exchanging business gifts is not only a custom, it’s an ex- common greetings and a few pected ritual. When visiting such countries, bring plenty of small, easy to carry Differences basic pleasantries in the local gifts that represent something about your company or geographic region. present learning language. If your skills are rusty, Always be mindful of the gift-giving rules under the Foreign Corrupt Practices brush up in advance by listening Act when dealing, directly or indirectly, with government officials. opportunities. to streaming news in the local language. Finally, know that in Compliment Carefully. Effusive Americans many countries, such as those Janet H. Moore has worked globally for 25+ years as an often lavish compliments: “I love your briefcase!” in Latin America, it is considered international business lawyer and global executive coach. or “I really love this sea cucumber!” Janet also led the last two study trips to India before joining rude to jump right into business Rice Business in July as the Director of the Full-Time MBA Communications program. Outside of Rice Business, Janet discussions without becoming Casual compliments can lead to your serves as the Honorary Consul of Georgia in the State of acquainted. Time spent develop- receiving the praised item as a gift or eating a costly Texas, mentors at Station Houston, and has leadership roles at the Houston Committee on Foreign Relations and ing these relationships will pay (to your hosts) delicacy for several the World Energy Cities Partnership. Comments welcome: dividends. days in a row. [email protected]
44 RICE BUSINESS 45 FALL 2016 Without Strong Competition, believe more in the competition effect, they recruit the best candidates. When they Political Parties Really Do worry more about the discouragement Gravitate Toward Mediocre effect, they choose candidates who are mediocre. Candidates. To show these two effects in the WELCOME TO THE PARTY candidate-selection process, the authors designed a theoretical model that mimicked olitics has been called “show business the candidate selection and election for ugly people.” It may also be the Based on Research By Andrea Mattozzi and Antonio Merlo P process. In the model, two parties selected natural calling of the mediocre and the electoral candidates based on observed indifferently prepared. Italy, for example, effort, distributed across a broad spectrum. has a significant number of legislators who Political ability for each candidate was don’t even boast a high school degree, while measured by the cost in effort associated former U.K. Prime Minister John Major was with political activity. In other words, the an insurance clerk before beginning his less effort politicians put into their work political career. Such examples are plentiful. for the same outcomes, the more ability Comparing degrees may not accurately they possessed. The model highlighted the capture candidates’ merits. But it is one trade-off between the discouragement and source of widespread suspicion that competition effects. elected officials are not quite the cream Interestingly, the model also suggested of the crop. Politicians, critics in many that a mediocracy functions differently in countries complain, are instead members of majoritarian election systems. Majoritarian a “mediocracy.” The truth hurts: Research systems, such as Britain’s First Past the Post shows that political parties tend to recruit system for House of Commons elections, electoral candidates of average ability rather tend to be competitive due to their winner- than their higher-caliber peers, measured by take-all natures. In these systems, parties signifiers such as educational attainment. are encouraged to nominate more qualified According to a study co-authored by The public tends to think elected candidates. Antonio Merlo, chair of the economics In the United States, most primaries department at Rice University, and Andrea politicians don’t represent the use a proportional electoral model, Mattozzi of the European University suggesting that political parties may be Institute, two phenomena — a mediocre best and brightest of all possible incentivized to choose mediocre candidates. pool of candidates and mediocre elected At the same time, the presidential election officials — may reinforce each other. candidates. uses a majoritarian, winner-take-all system, Research shows that political parties and has produced objectively accomplished choose less-qualified candidates in order presidents like George H.W. Bush and to spark widespread involvement in party Barack Obama. The theory of mediocracy politics. They’re trying to avoid what the applies to state level and congressional authors call the “discouragement effect:” candidates as well. So if American voters when highly qualified members of a are dissatisfied with their choices come competitive organization discourage less November, they can now look beyond their competent members from contributing. own party honchos. They can blame the By seeking a fairly homogeneous group system as a whole. of average politicians, political parties encourage healthy competition within the organization. See RiceBusinessWisdom.org But the discouragement effect doesn’t act alone. It’s part of a trade-off with Antonio Merlo is the George A. Peterkin another dynamic called the “competition Professor and Dean of the School of Social Sciences at Rice University. effect,” in which recruiting the best-qualified To learn more, please see: Mattozzi, A., & candidates boosts a party’s chances of Merlo, A. (2015). Mediocracy. Journal of Public winning an election. When political parties Economics, 130, 32-44.
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