Ernst & Young Entrepreneur of the Year 2007

Isaac Larian MGA Entertainment

Ernst & Young Entrepreneur Of The Year 2007

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AD-10-07-0198_8.5x11_r.indd 1 10/29/07 5:15:06 PM Success Is a Journey n an age where faster, better, cheaper has become a mantra, entrepreneurial growth companies continually find better ways to develop, grow, and prosper. They take Iwords like “can’t” and “no” and turn them into motivational tools. Telling an entrepreneur that something can’t be done is a surefire way to create a solution. And as these innovative men and women grow their companies into market leaders, they’re making valuable contributions to industries, economies, and individual lives. Ernst & Young’s Strategic Growth Markets practice understands what entrepreneurs face as they shepherd an idea to its full potential. We are the leader in serving the Russell 3000, high-growth private companies, IPO-bound companies, and companies with significant venture capital or private equity investments. We’re committed to serving entrepreneurial companies throughout their life cycles—from the emerging stage through their growth into successful market leaders. We created the Ernst & Young Entrepreneur Of The Year® awards 21 years ago to recognize and honor the accomplishments of the outstanding men and women who develop the products and services that create jobs, support communities, and keep our economy moving forward. The awards have grown dramatically during that time and now include programs in more than 135 cities and 50 countries around the world. The Entrepreneur Of The Year awards program represents the largest gathering of entrepreneurs in America and is the culminating event of the Ernst & Young Strategic Growth Forum. Held each November at the Desert Springs JW Marriott Resort & Spa in Palm Springs, Calif., the Forum is the country’s most prestigious annual gathering of high-growth, market-leading companies. It includes the annual IPO Transformation~CEO Retreat and, in 2007, a Cleantech Symposium as well as the special seminar, “Private Equity and the Changing Transaction Landscape.” Ernst & Young is proud to recognize the accomplishments of individuals who are turning their passion and ambitions into industry-shaping companies—people like Isaac Larian. The president and CEO of MGA Entertainment, Larian left Iran at age 17 with $750, washed dishes to put himself through college, and has grown the company he founded in 1982 into the largest privately held toy company in the world. His line of multi-cul- tural Bratz dolls successfully challenged the Barbie doll and is now the top fashion doll brand in the world. The company’s other brands include Yummi-Land, Storytime Collection, West Coast Choppers, Market Racers and Marvel Toys. The following pages profile Isaac Larian’s amazing achievements, as well as those of this year’s Entrepreneur Of The Year national category winners and finalists. We think you’ll agree that their stories of vision, perseverance, commitment and community service illustrate the potential of every entrepreneur to become a market leader. Sincerely,

Philip Anderson Americas Director Entrepreneur Of The Year

21 YEARS OF EXCELLENCE 1 CATEGORY WINNERS & FINALISTS

Retail & Consumer Products Sachiko Kuno, Ryuji Ueno Tom Campion Sucampo Pharmaceuticals, Inc...... 28 Zumiez...... 13 Jim Pearson Michael J. Hagan Suros Surgical Systems, Inc...... 28 Success Is a Journey...... 1 NutriSystem, Inc...... 13 Randy H. Thurman Sustaining Entrepreneurial Tony Hsieh VIASYS Healthcare Inc...... 28 Zappos.com, Inc...... 13 Growth Through Risk and Control Media, Entertainment & Communications Frank Gori Distribution, Manufacturing & Security Michael Walrath Americas Director Manu Shah Right Media ...... 29 M S International, Inc...... 14 Risk Advisory Services ...... 3 James F. Geiger A Legacy of Honoring Kenneth Hendricks Cbeyond, Inc...... 31 ABC Supply Company, Inc...... 16 William D. Marks Entrepreneurial Excellence ...... 5 Clayton M. Jones SeaMobile Enterprises ...... 31 Rockwell Collins, Inc...... 16 Andrew D. Ory . 6 Meet the 2007 National Judges Larry K. Powers Acme Packet ...... 31 Genlyte Group ...... 16 Venture Capital Award Real Estate, Hospitality & Construction of Excellence ...... 8 Emerging William Gay Michael V. Roberts W.W. Gay Mechanical Ernst & Young Steven C. Roberts Contractor, Inc...... 32 Roberts Hotels Group ...... 17 Entrepreneur Of The Year 2007 William C. Bayless, Jr. Isaac Larian Bruce Hansen American Campus Communities ..... 34 President, CEO ID Analytics, Inc...... 19 Richard Fain MGA Entertainment...... 10 Les Spero, Ph.D.; Rafi Spero Royal Caribbean Cruises Ltd...... 34 NeatReceipts...... 19 Allen Tate Mark Stagen Allen Tate Company ...... 34 Emerald Health Services ...... 19 Services Energy, Chemicals & Mining Harold “Max” Messmer Jr. Harold Hamm Robert Half International, Inc...... 35 Continental Resources, Inc...... 20 Robert O. Carr Heartland Payment Systems ...... 37 H. Craig Clark Nicholas DeBenedictis Forest Oil Corporation ...... 22 Aqua America, Inc...... 37 Jeff Morris Elliot Sainer David Wiessman Aspen Education Group ...... 37 Alon USA ...... 22 Dave Warren Technology Energy Alloys LLC ...... 22 Marc Benioff Financial Services Salesforce.com, Inc...... 38 Entrepreneur Of The Year magazine Ronald J. Kruszewski Douglas Bergeron Americas Director Stifel Financial Corp...... 23 VeriFone, Inc...... 40 Ernst & Young John S. Chen Entrepreneur Of The Year: Philip Anderson Todd Crosland Sybase, Inc...... 40 Program Director: Betty Pilcher Interbank FX ...... 25 Lawrence Ng Editorial Director: Warren Rappleyea Geoff Davis Oversee.net ...... 40 Unitus ...... 25 Managing Editor: Rebecca L. Grasso Li Yu Art Director: Tom Hickey Preferred Bank ...... 25 Contributing Writers: Kathy Bull Nick Iversen Roger Morton Health Sciences Pamela B. Morris Richard Osborne Warren Rappleyea World Entrepreneur Of The Year CareSource Management Group ..... 26 Lindsey Siegle Chuck Thomas Guy Laliberté Cirque du Soleil ...... 42

2 E NTREPRENEUR OF THE YEAR 2007 Sustaining Entrepreneurial Growth Through Risk and Control By Frank J. Gori

t has been said that those who will not take risks cannot Understand and control your risk profile win. Nowhere is this more true than for entrepreneurial Icompanies. Examples abound of successful entrepreneurs Many business leaders today focus on performance while fail- who built their businesses on embracing challenges, taking ing to recognize the importance of risk and control activities. calculated risks, and reaping substantial rewards. Many of As an entrepreneur, it is vitally important to both build and today’s most successful companies—eBay, Starbucks and protect the value of your growing organization. The ability Coca-Cola to name but a few—all started as small, entrepre- to understand and control your unique risk profile through neurial businesses with a keen understanding and willingness a formal risk management framework—and reduce duplica- to take control of their risks. tion or gaps in risk coverage—can become a key competitive advantage. As a leader, you guide your company through new challenges on a daily basis. When your company was smaller, it may Risk management framework: a three-pronged have been easier to control your business risks, and make do approach with incomplete, ad hoc risk management practices. As your company grows, however, it becomes increasingly difficult to For entrepreneurial companies, the pace of business change manage risks appropriately to enable sustainable performance. makes achieving effective risk management a daunting chal- Increasingly, you may be lenge. To facilitate this, entering multiple rela- you should strive to align tionships with suppliers, and coordinate functions, distributors, and agents or processes, and activities, be involved with mergers and drive overall effi- or acquisitions, expanding ciency. This type of risk overseas, launching new framework must address a products, or preparing to number of key questions go public. related to governance, people, and methods and Success in navigating practices. these challenges does not come by chance or GOVERNANCE luck. As an entrepreneur, managing risk appropri- As a leader in a fresher, ately allows you to more rapidly evolving orga- effectively grow revenues, nization, setting the outpace competitors, attract top talent, and undertake success- appropriate tone and strategy is a key element to future suc- ful ventures in new markets. All of these outcomes contribute cess. Policies and procedures can then be articulated, provid- to your goals of achieving the financial position necessary to ing guidance for consistent approaches to risk and control. secure financing or to take your company public. What’s more, Further, having a strong organizational focus on compliance while your company experiences success and rapid growth, will create an environment that is risk-aware and has a greater you may find yourself faced with challenges never before ability to keep your company out of trouble. encountered or more complex than you’ve seen in the past. PEOPLE In this business environment, it is vitally important to not just “make do” with a piecemeal approach to risk management, but The people that make up your organization are fundamental to make a concerted effort to “get it right.” to the success of risk management and internal control activi-

21 YEARS OF EXCELLENCE 3 ties. Ultimately, the underlying competencies and capabilities file—a chance to truly “get it right,” confident that you are of your people are critical to your ability to manage risk and focusing on the right risks, with the right level of effort, at the control in a manner that keeps the organization out of trouble right time. while simultaneously enhancing performance. Clarity around roles and responsibilities for risk and control is crucial, and Getting it all right people must understand and accept their obligations related to The complexities of building a robust risk management infra- risk and control. Key functions must also be aligned and coor- structure, developing methodology, providing training, and dinate risk and control activities across your organization, not monitoring compliance are vast. As a leader responsible for just within functional silos or geographic areas. the overall success of your organization, it is your challenge to make sure a system exists and that it is working well. This METHODS AND PRACTICES doesn’t, however, mean that you have to go it alone. Many World-class methods and practices enable your people to leading entrepreneurial companies have determined that part- effectively and efficiently manage risk and control across the nering with organizations to advise, develop or even wholly breadth of the enterprise. Methods outsource many elements of their and practices designed in accor- risk management programs offers dance with your overall corporate “While your company expe- them a greater degree of flexibility strategy and objectives—paired and improves the quality of their with a clear mandate for risk man- riences success and rapid risk management capabilities. agement and control—will provide Having access to highly qualified you with actionable information growth, you may find yourself advisors and other risk manage- regarding your overall risk profile. faced with challenges never ment resources can be a cost- These may include risk identifica- effective way to quickly respond tion and testing, control design and before encountered or more to changing needs without com- effectiveness, process improvement promising the overall quality of and efficiency, monitoring and complex than you’ve seen in your risk management and control escalation, and communication and the past.” framework. reporting. Evaluating the application of methods and practices within Without a robust, leading-practice the existing business processes, activities and functions will risk management structure, high- provide you with the greatest insight into your overall risk growth companies risk regulatory exposure, potential litiga- management capabilities. tion, and loss of investor confidence. Having a solid financial controls and risk management structure in place is not just a Sustaining risk competency necessity, it’s also a good business decision. Those companies who “get it right” have a competitive position much stronger Building risk competency within your organization is but the than those who just “make do.” first step in supporting your strategic growth objectives. For a growing number of companies, the key to achieving sus- Twenty-one years ago, Ernst & Young first recognized “those tainable success lies in the ability to consider a broad array who got it right” through the Entrepreneur Of The Year pro- of risks, incorporate the breadth of operations, and align to gram. Today the program celebrates and acknowledges entre- overall strategies and objectives. With this alignment, you will preneurial excellence in more than 50 countries and gives reduce the burdens placed on lines of business, and allow for Ernst & Young the privilege of working with and learning greater focus on primary business activities. from the world’s most successful entrepreneurs. We are proud to celebrate and encourage entrepreneurs and their achieve- A holistic approach adds transparency and provides the confi- ments around the world. dence to stakeholders that risks are being proactively assessed, improved, and monitored. This allows entrepreneurial leaders Frank J. Gori is the Americas Managing Partner, Risk Advisory to truly create value while optimally allocating capital and Services, Ernst & Young LLP. resources based on greater insight of their evolving risk pro-

4 E NTREPRENEUR OF THE YEAR 2007 A Legacy of Honoring Entrepreneurial Excellence

or more than two decades Ernst & Young and the National Ernst & Young Entrepreneur Of The Year winners and Entrepreneur Of The Year awards have honored and finalists are announced at an annual awards gala, the culmina- Fcelebrated entrepreneurial men and women and the tion of the Entrepreneur Of The Year event held in November companies they create and grow into market-leading organiza- at the Desert Springs JW Marriott Resort & Spa in Palm tions. During that time we have chronicled their capacity to Springs. As part of the event, all regional and national winners transform organizations, create new products and industries, are also inducted into the elite Entrepreneur Of The Year Hall enrich individual lives, and contribute to the vibrancy of local of Fame, on permanent display at Ernst & Young’s U.S. head- and national economies. quarters building at 5 Times Square in New York City.

Entrepreneur Of the Year winners represent companies that are The following pages will introduce you to the 2007 judges market leaders or have the unmistakable potential to become and our Ernst & Young Entrepreneur Of The Year winners and one. They are among the most influential and recognizable finalists. Find out what makes them stand out as examples of names and brands in the world—Jeff Bezos of Amazon. entrepreneurial excellence. com, Steve Case of America Online, Wayne Huizenga of Blockbuster, Pierre Omidyar of eBay, Howard Schultz of For complete information on the Entrepreneur Of The Year Starbucks Corp., and Kevin Plank of Under Armour awards program visit www.ey.com/us/eoy or call 1-800-755-AWARD. The annual Entrepreneur Of The Year awards begin each year with programs across the United States. Seven to 10 winners in varying award categories in each program are selected from among nominees by independent panels of judges, compris- ing local business, financial, academic and media figures. In 2007, 26 U.S. regions hosted Entrepreneur Of The Year awards and honored their winners at awards banquets during the month of June. All regional winners become contenders for the national awards.

National Entrepreneur Of The Year winners are chosen in one of 10 national categories by independent judging panels under the auspices of the Ewing Marion Kauffman Foundation. From those winners, judges narrow their selection to one person—an individual whose leadership and overall entrepreneurial excellence clearly sets him or her apart. That person is honored as the Ernst & Young Entrepreneur Of The Year and represents the United States at the World Entrepreneur Of The Year event, which takes place in Monte Carlo. See page 42 for more about World Entrepreneur Of The Year and the 2007 winner.

Entrepreneur Of The Year judges have firsthand knowledge of what it takes to grow and lead a successful business. Many are past national or regional Entrepreneur Of The Year winners themselves. They have experienced the rewards and challenges of building winning enterprises and understand that success is not measured in dollars alone. Judges take a number of factors into consideration when making their decisions, including the type of business, its everyday practices with respect to employees, and its impact on the community.

21 YEARS OF EXCELLENCE 5 Ernst & Young Entrepreneur Of

Third row, standing, from left: Sherrill Hudson, TECO Energy, Inc.; Selim Bassoul, Middleby Corporation; Christopher Duda, Goldman, Sachs & Co.; Jay Morse, The Washington International, LLC; Dave Moody, C.D. Moody Construction Co., Inc.

Second row, standing, from left: Leo Wells, Wells Real Estate Funds, Inc.; Simon Bax, Docufide Inc.; Howard Brodsky, CCA Global Partners; Blythe Jack, Rosewood Capital; Richard Partners, LLC; Emilio Piñero Ferrer, Banco Popular de Puerto Rico; Eddie Brown, Brown Capital Management; Leo Ullman, Cedar Shopping Centers, Inc.; Andrew Raguskus, Sonic

First row, seated, from left; Joe Scarlett, Tractor Supply Company; Rob Scott, Colubris Networks; Jeffrey Goldfaden, Warburg Pincus & Co.; Matthew Boyer, The Carlyle Heritage Academics, Inc.; Helen Greiner, iRobot Corp.; Howard Levitt, Tourneau, Inc.; Steven Trager, Republic Bancorp Inc.; Jessie Knight, Sempra Energy

6 E NTREPRENEUR OF THE YEAR 2007 The Year 2007 National Judges

Post Company; Jim Davis, Chevron Energy Solutions; Donald Holzworth, SRA International, Inc.; Victor Tsao, Linksys, a division of Cisco Systems; Bob Henry, Arbonne

Bendis, True Product ID, Inc.; George Dalton, Novo 1, Inc.; Nancy Briefs, Eleme Medical, Inc..; Victoria Haynes, Ph..D., RTI International; Bernee Strom, Revitalization Innovations, Inc.; Edward Iacobucci, DayJet Corporation

Group; Richard Caruso, Ph.D., Integra LifeSciences Corp.; Reneé Amoore, The Amoore Group, Inc.; Steve Demetriou, Aleris International, Inc.; J.C. Huizenga, National

21 YEARS OF EXCELLENCE 7 Venture Capital Award of Excellence

The award criteria include a focus on companies that achieved strong success with less than $100 million in venture capital investments; equity and revenue growth; earnings before interest, taxes, depreciation and amortization (EBITDA) margins; and the story of the entrepreneur.

“Zappos.com is an outstanding example of a company that was able to achieve its vision for growth and service as a result of venture capital investment,” says Joe Muscat, who leads Ernst & Young’s Americas Venture Capital Advisory Group. “The investments of venture capitalists are vital to our economy. They provide the Tony Hsieh critical capital necessary CEO to help growing companies hire the right team, expand Zappos.com, Inc. operations efficiently, and Henderson, Nev. enter new markets.” Founded: 1999 Tony Hsieh has been a part of Zappos.com’s success literally from the beginning. In 1999 Nick Swinmurn founded the company to pro- ony Hsieh, CEO of online retailer Zappos.com, is the vide a hassle-free way to buy shoes. Hsieh was with Venture recipient of the second annual Ernst & Young Venture Frogs, which initially funded the upstart business with TCapital Award of Excellence. The award recognizes $11 million. The following year, Swinmurn brought in Hsieh an Ernst & Young Entrepreneur Of The Year regional winner as Zappos.com’s CEO. whose company has received venture capital backing. Hsieh guided the company through the dot-com bust, a reces- Hsieh was chosen from over 90 venture-backed companies sion, and limited early financing by focusing on service among the Entrepreneur Of The Year 2007 regional winners and creating the best possible online shopping experience, a by a panel of four independent VC judges—Scott Carter strategy that often meant challenging the company’s bottom of Sequoia Capital, Cynthia Ringo of VantagePoint Venture line. Zappos.com wasn’t the first online business to offer Partners, Josh Goldman of Norwest Venture Partners, and free shipping, but it discarded the drop-shipping model, Marc Lederman of NewSpring Capital. Judging took place opting instead to house its products within a single central in September at the offices of Sequoia Capital.

8 E NTREPRENEUR OF THE YEAR 2007 Zappos.com has adopted a near-fanatical focus on customer service, a strategy that has resulted in a 60 percent rate of repeat business among its more-than-5 million customers worldwide. Customer service isn’t a department at Zappos. com, it’s the entire company—from a 24/7 call center employ- ing 1,300 people to service representatives who don’t work from scripts and will spend as long as it takes to respond to each customer inquiry. In fact, within Zappos.com the unof- ficial motto is: We are a service company that just happens to sell shoes.

Today, Zappos.com is the leading online shoe retailer, accounting for 20 percent of the estimated $3 billion online footwear business. But shoes were just the beginning. Zappos. Venture Capital judges (standing): Marc Lederman, NewSpring Capital (left); com carries 3 million shoes, handbags, and apparel and acces- Josh Goldman, Norwest Venture Partners; sory items and more than 1,100 brands. It has doubled its Seated: Scott Carter, Sequoia Capital; Cynthia Ringo, VantagePoint Venture sales every year since 1999, generating nearly $600 million in Partners sales in 2006. And Hsieh believes the company can make that sales figure $800 million in 2007. warehouse, at a steep cost of 25 percent of revenues. The warehouse’s carousel system—touted to be the world’s larg- Hsieh’s vision for Zappos.com is straightforward: est—fully automates material handling to expedite delivery, • One day, 30% of all retail transactions in the U.S. will better control fulfillment, and ensure customer service be online. standards. • People will buy from the company with the best While he focuses on growing the business at a service and the best selection. rapid pace, Hsieh works to maintain the culture of a small company. • Zappos will be that company.

21 YEARS OF EXCELLENCE 9 Retail & Consumer Products Isaac Larian President, CEO MGA Entertainment Van Nuys, Calif. Founded: 1982

hen Isaac Larian left Iran at age W17, his destina- tion was America, the land of opportunity—a place where, if you worked hard, you could pursue your dreams of success. When he arrived in Los Angeles, he had $750 in his pocket and the determination to make his dreams come true.

10 E NTREPRENEUR OF THE YEAR 2007 At the end of his first month in the U.S., however, Larian had asm gives Larian insight into what kids want. Nowhere has only a handful of quarters and very few options remaining. that insight been more accurate than with the Bratz doll. “The He walked 11 miles, stopping at restaurants, car washes, and market was looking for a doll for girls over the age of six,” gas stations looking for work. He eventually found a job in a explains Larian. While the Barbie doll reflected what girls of coffee shop, working as a dishwasher on the graveyard shift— the fifties and sixties may have aspired to as adults, the Bratz 11 p.m. to 7 a.m.—for $1.65 an hour, an opportunity that he dolls reflect today’s girls. “They’re multicultural, and they’re refers to as “lucky.” The work enabled him to attend college fashionable,” says Larian of the dolls, whose tag line is “the during the day, eventually earning a civil engineering degree only girls with a passion for fashion.” from California State University. Since their introduction, the Bratz dolls have grown into a But Larian would never use the degree. Shortly after college, billion-dollar franchise. Bratz is now the number one fashion he launched Micro Games of America, acting as a licensee doll brand worldwide—a title held for more than 40 years of other company’s products, including Nintendo, Power by the Barbie doll—and the leading seller in the 6–12, or Rangers and Hello Kitty. Larian soon saw that being a licen- “tween,” age bracket. It was the No. 1 fashion-themed doll sor provided the greatest opportunities for growth, and began during the 2006 fourth quarter according to the consumer building MGA’s own brands and licensing them to others, tracking service The NPD Group. Bratz products won Family beginning with the wildly popular Bratz line of fashion dolls Fun magazine’s Toy of the Year award four years in a row and in 2001. took home top honors at the 2006 Family Fun Toy Of The Year Awards. Larian believes the key to being a successful entrepreneur is very similar to what it takes to being popular with kids. Larian says the idea for the original Bratz doll was crystal- “You always have to be looking for something new,” he says. lized when his daughter Jasmin was visiting the MGA offices. Larian learned that lesson the hard way. When he sought the The creative staff pitched the idea to her and “she thought it American distribution rights to was really cute,” Larian explains. “I Nintendo he was refused. He per- knew that if she liked it, other girls sisted and eventually prevailed, “What I know is the emotions would too.” selling $22 million of Nintendo merchandise in a single year. But of a kid, and in selling toys, In fact MGA holds focus groups trends in toys change as quickly that’s the key.” regularly to find out exactly what as fashion, and the following kids want. Children “kid test” the year MGA had $10 million of dolls and report back with their Nintendo inventory that didn’t sell. Larian used the experi- thoughts. The company also invites ence as a learning opportunity. feedback via its members’ clubs, and solicits children’s comments through Bratz fan sites. “Kids are very honest,” In 1998, as the company transformed into a full consumer explains Larian. “They’re not afraid to tell you what they entertainment products company, Larian changed its name to think, or show their emotion.” MGA Entertainment, Inc. MGA has since grown to become the largest privately held toy company in the world. It cur- One example of how MGA listens to what girls want is the rently manufactures and produces more than 20 product lines company’s “Become a Bratz Designer” promotion, launched of toys and games, dolls, consumer electronics, home décor, in 2006 exclusively through retailer Wal-Mart. Girls submit- stationery, and sporting goods, including such household ted their fashion ideas, and one design was chosen from each names as Bratz, Yummi-Land, Storytime Collection, Rescue of two age groups (five–nine and 10–14) from over 50,000 Pets, Miuchiz, West Coast Choppers, Market Racers, and entries. The winning entries each received a $10,000 college Marvel toys. savings bond, as well as the honor of seeing the doll wearing the fashions they designed. And nobody is having more fun than Larian. “This is my art,” he says, “I love that I get to help kids have fun—it’s my pas- Larian believes that consumers want product innovation and sion and my life.” Larian’s imagination and passion make him creative style, and he’s structured MGA to deliver. Managers well-suited to the toy industry. “My wife says I’m a big kid,” are empowered to run their departments as though they were he says with a smile. And apparently that childlike enthusi- their own businesses, and Larian holds weekly management meetings to coordinate efforts between the departments.

21 YEARS OF EXCELLENCE 11 Brainstorming is a big part of MGA’s culture. “I encourage explains Larian, “but what I know is the emotions of a kid, everyone to contribute at any time,” Larian says of his open- and in selling toys, that’s the key.” His goal is to make Little door policy. Tikes a billion dollar brand by 2010.

In fact, Larian credits MGA’s more than 500 employees and Larian’s toy company turnaround plans have extended to product designers as the source of ideas he taps into regularly. Europe as well. In May 2007 MGA acquired Smoby—rescu- In 2002 an intern introduced the idea for an accessory—a spa ing France’s largest toy company, and Europe’s second largest, for the Bratz dolls—that inspired the first-ever Bratz play set. from bankruptcy. The product also garnered MGA the Toy Industry Association People’s Choice Toy of the Year that year. Despite his success, Larian still thinks and acts like an entrepreneur and offers this advice to others: “Trust your The Bratz dolls and additional spin-off lines, including Bratz instincts, stay humble, and be true to your roots.” For Larian, Babyz and Bratz Kidz, have spawned fashion magazines, those roots reach back to the Middle East, where bartering CDs, television shows, movies, and apparel collections that in bazaars is a true art form, and, he believes, one of the best reinforce the brand name by reaching almost every aspect training grounds for an entrepreneurial businessman. While of girls’ lives—from what they wear to the games and toys working for his father’s small textile business, Larian learned they play with and how they listen to music. MGA currently the art of negotiation. Today he considers those negotiating has more than 400 licensees worldwide bringing together skills essential when selecting manufacturers to produce any innovative companies and cutting- one of MGA’s wide array of rapidly edge fashion styles to create exciting changing toys. new products—from Bratz Stylin’ Cosmetix to Bratz Sporty Flair Although he’s learned the art of the Bedding. deal, instinct and trusting your gut is something that Larian says is innate. It’s Larian’s goal to create world class When he met his future wife at a party, entertainment brands through MGA he told her right there that he’d marry Entertainment. In 2004 the company her. She laughed. Today, a few decades signed a deal with Twentieth Century and three children later, she knows his Fox to create a live action/animated intuition is right on. feature based on the Bratz fashion dolls. The same year, MGA entered Giving back is very important to Larian, into a partnership with Simon Brand who takes advantage of opportunities to Ventures, the business-to-consumer share what he’s learned arm of Simon Property Group mall “Trust your instincts, with others. He teaches operators, to launch the animated entrepreneurship classes “Bratz Babyz the Movie” DVD, stay humble, and be through his alma mater’s released by Fox Home Entertainment. Set for introduc- “Professor for a Day” tion this fall is a boys’ radio-controlled action figure true to your roots.” program and suggests property called Alien Racers. to students and aspiring entrepreneurs: “Don’t do Larian continuously looks for new opportunities to put into what I did; have a business plan, but stay flexible, and keep play what he’s learned in his years in the toy industry. Having changing it with the market.” a good feel for what kids in the age six and up category want inspired him to explore creating products for kids under the Even the youngest of audiences benefits from Larian’s experi- age of six, including the purchase in 2006 of Little Tikes, the ence and outlook. “I teach my children values through what Hudson, Ohio-based maker of durable plastic toys and play I’ve learned,” he says. “I came here with little, started as a sets for toddlers and young children. The company’s sales dishwasher, and got a chance to live the American Dream.” had flattened in recent years, something Larian has set his For Isaac Larian living that dream is continuing to make the sights on turning around. “Little Tikes had been bought previ- magic happen for MGA Entertainment and children around ously by Newell Rubbermaid, who know plastics very well,” the world.

12 E NTREPRENEUR OF THE YEAR 2007 Retail & Consumer Products

Tom Campion FINALIST: Mall- Michael J. Hagan FINALIST: In 1999 Tony Hsieh invested Chairman based specialty Chairman, CEO nearly $11 million in venture capi- Zumiez retailer Zumiez NutriSystem, Inc. tal to fund the company founded by Everett, Wash. began as a single Horsham, Pa. Nick Swinmurn that would become Founded: 1978 store in Seattle’s Founded: 1972 Zappos.com. The following year Hsieh Northgate Mall became the company’s CEO and since called Above the Belt, selling only FINALIST: When then has grown sales from $1.6 mil- shirts. Today, Zumiez carries a broad NutriSystem lion to $587 million in 2006, with a array of products for the action sports introduced goal of $800 million this year. One lifestyle and has grown to 235 stores the prepack- of Time’s 25 Sites We Can’t Live operating in 23 states with nearly 800 aged diet Without in 2006, Zappos.com has employees generating more than meal con- more than 5 million customers and $298.2 million in sales in 2006. cept in the accounts for 20 percent of the online early ’70s footwear market. The creative force behind that success it launched is Tom Campion, who, with colleague Key to that success has been a near- an indus- Gary Haakenson, left his job at J.C. fanatical focus on the customer try. A Penney to launch their first store. Astute experience—from a 24/7 call center decade later it was an iconic brand, decisions kept the company growing, with unscripted service representatives but in the early ’90s dieting industry and in 1988 Campion took a risk and and no time limits on individual calls regulation and the high fixed costs of a added skateboards and snowboards to to free shipping and returns—that has brick-and-mortar business model sent the product mix. By the early ’90s he resulted in nearly 60 percent repeat the company into bankruptcy. had expanded the company’s product customers. Zappos.com also elimi- line to include action sports apparel, In December of 2002, a small group nated drop-shipping, and completely shoes, and accessories and changed of investors, led by Mike Hagan, took warehouses its 3 million items and the company name to Zumiez to better control of NutriSystem with the goal 1,100 brands, including shoes, hand- reflect its image and target market of a turnaround. The complicated bags, clothing and accessories, in a of teens and young adults. In 2001, transformation involved unwinding single 900,000 sq ft warehouse with Campion partnered with private equity franchise agreements, analyzing and fully automated material handling. firm Brentwood Associates and in 2005 segmenting the market, investing in The goal at Zappos.com is what is took Zumiez public. a neglected brand, relaunching it as a known internally as the “wow” factor. small player, and revamping the entire Campion is now sharing his passion and That’s when a customer says, “Wow, prepackaged food offerings to create values with others through the Campion that was the best the NutriSystem Nourish program. Foundation, which invests in preserv- shopping experi- Tony Hsieh ing wild places in the Northwest and Hagan transformed NutriSystem into ence I’ve ever CEO creating systemic a marketing-driven e-commerce com- had.” Zappos.com, Inc. change to end pany with strong brand recognition Henderson, Nev. homelessness and a low-cost, highly scalable model. Founded: 1999 in Washington Even though 90 percent of State. NutriSystem’s business is con- ducted online, Hagan opted for traditional marketing channels to drive profitable customer growth. The direct-to-consumer business model has generated 400,000 new customers in the last two years alone.

13 Distribution, Manufacturing & Security Manu Shah Chairman and CEO MS International, Inc. Orange, Calif. Founded: 1974

anu Shah and his wife, Rika, had a very modest for use in monuments. “Our aim was very clear,” he says. “We goal—create a small, home-based business that defined a small segment and we wanted to be a player. That Mwould enable Rika to bring in some extra income was our aim. That was all.” to supplement Manu’s earnings as a mechanical engineer. The money would come in handy. The couple, married in 1971, But being a meticulous planner by nature, Shah found himself had come to Ft. Wayne, Indiana, by way of Bombay with $210 constantly reexamining the possibilities and putting the pieces in their pockets and $3,000 of debt. in place for MS International’s next steps. “We kept expanding our definition of what we wanted to be,” he says. “And we Three years later, they were beginning a family and were kept using our capital to grow the business.” focused on the future. Because one of his brothers worked in the natural stone industry back in India, Shah knew enough By 1981 the company’s definition had expanded to the point about the business to see the possibilities of importing stone that Shah felt it could be a contender in the competition for

14 E NTREPRENEUR OF THE YEAR 2007 one of the most historically significant contracts in America. of state-of-the art technologies and has succeeded in reducing He learned that Maya Ying Lin’s design for the planned the price of natural stone by approximately 5 percent every Vietnam Veterans Memorial in Washington, D.C., called for year for the last 10 years by increasing efficiencies in the the use of black granite. The opportunity captured Shah’s supply chain. imagination, and he was confident that MS International (MSI) was ideally suited to win the contract. In 2003, MSI began importing slate and other landscape stone and now imports natural stone from more than 30 countries on Only four countries—the United States, Sweden, South Africa five continents and maintains an inventory of approximately and India—mined the stone needed for the memorial, Shah 20 million square feet nationwide. Additionally, the com- explains, and he already had established a direct line to the pany has incorporated bathroom tile and other unique stone latter. And for different reasons, none of the other countries products that appeal to homebuyers. These innovations and was a strong contender. Shopping centers and homes had cov- advances have helped MSI become the number-one distributor ered most of the land where the stone could be mined in the of stone to consumers in the United States. Even with home U.S., quarries were becoming depleted in Sweden, and social sales dropping over the past two years, MSI has seen growth issues interfered in South Africa. Shah was convinced that of more than 100 percent since 2004. India was the logical source, and MSI was the logical distributor. He proved to be right on both counts. One of the top priorities for MSI is to provide the highest level of service in the industry to its customers, which include When the deal was executed Shah left his position as a project some of the nation’s largest retailers, such as The Home Depot engineer for International Harvester and joined the family and Lowes. MSI believes that it’s in the information business business full-time. Three years later he moved the company of natural stone and provides its customers with an array of to Southern California, which he had determined would be services, including state-of-the-art information systems for the ideal location for distribution, and accurate, real-time information on inven- another three-year plan was set in motion. “We kept expanding tory availability and pricing, product knowledge seminars to help train sales “Each time we would define a new seg- our definition of what forces, and in-store natural stone display ment, we would not go beyond three systems. years,” Shah says of MSI’s strategy. In we wanted to be.” 1987, yet another course was charted When Shah reflects on the factors when Shah recognized that there was responsible for his success in a field far phenomenal potential for MSI—up to that point primarily a removed from his initial professional pursuits, his thoughts distributor of granite memorial monuments—to adopt natural return to his native India. The youngest of nine children, he stone for commercial and residential use as well. lived in a rural area until he was six, when the family moved just outside Bombay. The move meant the family went from “What if I can make black granite a part of living rooms and poor to “not much better than poor,” he says. family rooms?” Shah wondered. “I began to talk to builders, to anyone who would listen to the story of black granite. And by As the youngest child, he saw few opportunities to be first in 1987 I started to get a break.” anything. “But I wanted to be in the first tier,” he says. And the secret to reaching that goal, he believes, is careful planning. Because the stone was freely available only from India, MSI That penchant for planning is woven into MSI’s corporate cul- enjoyed a natural advantage as the market segment opened. ture and is reaping rewards. Today the company has nearly 400 For the last 10 years, Shah has embarked on his vision to make employees and boasts 14 consecutive years of growth. MSI the only nationwide distributor of natural stone in the United States. In that time MSI has opened six mega distribu- Clearly, Manu and Rika—who are now joined in the business tion centers and has amassed more than 2,000 recurring cus- by their sons, Raj and Rup—have come a long way from that tomers in all 50 states. basement business they started in Ft. Wayne. But Shah says they take the most satisfaction from the opportunities they MSI differentiates itself from its competitors in a number of have created for others. There are 30 million jobs in the stone significant ways. The company’s commitment to continuous industry worldwide, he says, and calculates that MSI plays a innovation is reflected in its goal that 15 percent of product part in 100,000 of them. “It makes me and my wife and our mix each year is new products. MSI has increased productivity family very happy,” he says. “We are doing our part.” by 20 percent annually for the last three years through the use

21 YEARS OF EXCELLENCE 15 Distribution, Manufacturing & Security Kenneth Hendricks FINALIST: When FINALIST: From his humble beginnings CChairman,hairman, CCEOEO he was named on the family cattle ranch to chairman AABCBC SSupplyupply CCompany,ompany, IInc.nc. president and CEO of the world’s largest company BBeloit,eloit, WWis.is. of Rockwell dedicated exclusively to the design, FFounded:ounded: 11982982 Collins in 1998, manufacture and marketing of lighting Clayton Jones fixtures, Larry Powers has embodied FINALIST: As owner of one of the larg- faced a for- true entrepreneurial spirit. The Genlyte est commercial roofing businesses in midable Group’s 45 brands are among the most the nation, Ken Hendricks was tired of challenge— recognized and well-regarded in the dealing with multiple suppliers scat- reuniting industry and are sold and distributed tered around the country. So he and a divided through a direct sales force, independent his wife, Diane, took matters into their company. agencies and distributors. own hands. In 1982, they acquired three Founded supply centers, which became the first Formed in 1984, Genlyte struggled as the Clayton M. Jones locations of the new American Builders through high debt until 1993, when Collins Chairman, and Contractors Supply. Powers was appointed Radio President, CEO president. He orga- Today, with 5,800 associates and more Company Rockwell Collins, Inc. nized the company than 350 locations in 45 states and the in 1933, it Cedar Rapids, Iowa into decentralized District of Columbia, ABC Supply is had been Founded: 2001 business units that the largest wholesale distributor of roof- acquired focused on ing in the United States and one of the by Rockwell International in 1973 after their end nation’s largest distributors of siding, an unsuccessful foray into the computer markets and windows and other select exterior build- industry, then split into separate busi- adopted ing products. nesses. an entre- Larry K. Powers The path to that progress was paved in A former fighter pilot in the U.S. Air preneurial Chairman, customer service. ABC added a catalog Force, Jones reestablished the strength manage- President, CEO division to give contractors easy access of Rockwell Collins as an aerospace ment style Genlyte Group to more than 6,000 items from hand company. It was spun off in an IPO in in which Louisville, Ky. and power tools, fasteners, 2001, but a mere two months later, the each division Founded: 1984 caulks, and sealants to company faced the fallout of the 9/11 manager has ventilation equipment terrorist attacks, followed by wars in complete and specialty materi- Afghanistan and Iraq. profit and als. A portfolio loss respon- Given the nature of the company’s busi- of products sibility. The ness, that “perfect storm” of negative and services manager is challenged to emphasize forces might well have been disastrous. provide con- innovative new product development Indeed, the company’s commercial busi- tractors with and drive these products through their ness lost 27 percent of sales in a two- marketing specific niches. Genlyte’s business units year period. Rockwell Collins survived tools, and compete against each other on various the crisis and today is among the most an in-home performance measures but also work profitable companies in the aerospace finance pro- together to share best practices and gain and defense arena. Under Jones’ leader- gram allows con- advantages within the marketplace. ship, Rockwell Collins provided a total tractors to offer shareholder return of 313 percent in The results have been remarkable. Under financing to their its first five full fiscal years on its own Powers’ leadership the company has customers. and in 2006 was named one of Forbes more than doubled its revenue. In 2006 magazine’s America’s Best Performing alone, Genlyte introduced more than Companies. 20,000 new products and more than 380 new product families.

16 E NTREPRENEUR OF THE YEAR 2007 Emerging Michael V. Roberts (left) Chairman, CEO, Founder Steven C. Roberts President, COO, Founder Roberts Hotels Group St. Louis, Mo. Founded: 2003

rothers and business partners Michael and Steven to president and COO Steve Roberts, refurbishing the Mayfair Roberts founded Roberts Hotels Group (RHG) in was just the first step. “It created additional real estate oppor- B2003 with the purchase of their first property, the tunities, because we asked ourselves what we could do to historic Mayfair Hotel in downtown St. Louis. Combined with make that piece of property more successful.” The Mayfair their latest forays into the hospitality industry, the Roberts’ became the hub for subsequent development, including a 24- ongoing real estate ventures have helped to stimulate the story condominium project innovatively connected so that revitalization of often depressed and predominantly African- residents can avail themselves of the hotel’s amenities, includ- American sections of cities across the country. ing exercise, concierge and dining services.

The Mayfair, a St. Louis fixture since 1917, was in disrepair St. Louis is also the site of one of RHG’s most recent acqui- at the time of its acquisition, but the brothers had a desire to sitions earlier this year, which will be unveiled soon as the contribute to the revitalization of their hometown. According Roberts Ultra Hotel and Spa, “the model for our ventures

21 YEARS OF EXCELLENCE 17 EEmergingmerging going forward,” according to Michael Roberts, chairman and with reward. One of the biggest challenges for RHG is balanc- CEO. “We’re real estate guys,” he says, “and buying existing ing the pace at which new hotels are purchased while newly buildings that are undervalued is the model that makes sense acquired hotels are being renovated and newly renovated to us. We can then turn it around into a reasonably priced, hotels are being positioned to gain market share. good-quality hotel for Americans who are now more mobile and looking for better vacation opportunities or places to con- Two additional properties in St. Louis and Memphis will be duct business.” transformed into Roberts Indigo Hotels, reflecting the brothers’ relationship with another major player, Intercontinental. Today, RHG owns and manages 11 hotels, primarily in the “The Roberts standard is to exceed the brand’s standards sub- Midwest and South, increasing the company’s employment stantially,” says Mike, and the brand name hotel companies base from 50 to well over 1,000 workers. The development they do business with are happy to be affiliated with RHG, provides local jobs and infuses new life into distressed urban whose upgrading reflects well on everyone, especially the areas. “We look at it not only as a business, but as a commit- community. ment to a community and an industry,” Steve explains. “You can’t have arm’s-length commitment. You have to roll up your That includes RHG’s employees. “Our employees know we sleeves and get your hands dirty. The people in a new venture are first a people-oriented organization because we give them must learn to understand that your commitment is as great as, the opportunity to share the entrepreneurial spirit,” says Steve. or greater than, their own.” Much of the Roberts’ success is built on their ability to recruit and retain key people. Each hotel actively recruits women and “Entrepreneurial” is an apt description of the Roberts broth- minorities, trains them, and provides opportunities for them to ers’ careers. “An entrepreneur is a rise through the ranks of the hospital- visionary, someone who looks beyond ity industry. what’s there today, and is something “We look at it not only as of a risk-taker,” says Steve. Roberts Steve and Mike believe that it’s Hotels Group is just the latest in more a business, but as a commit- important to let their employees know that the company is in it for than 70 ventures over the last three ment to a community and decades—beginning with Roberts- the long haul. “That takes person- Roberts & Associates, a consulting an industry.” to-person relationship-building,” and construction management firm, says Steve. “They need to see as well as highly successful broad- updates and improvements that casting and wireless businesses. make the properties real assets, not only for us but for the community.” And success is what Michael and Steven expect of each of their companies. “We’re proud of our achievement in growing “Everyone wants us to succeed,” agrees Mike, whose sup- the hotel division so quickly,” says Steve, “but this business is port, along with his brother’s, of local political and charitable a stand-alone company with independent management” that efforts helps to create a winning situation all around. As chair- must earn a profit, and does. man of the National Association of Black Hotel Owners and Operators, Mike works not only to increase ownership by Following RHG’s development of the Mayfair in St. Louis, African-Americans, but to help other emerging entrepreneurs the brothers evolved a pattern of taking over existing hotels for the benefit of their communities as well as the hospitality and investing in the staff their brand of personal management industry. care. RHG properties in Atlanta, Dallas, Tampa, Houston, Spartanburg (S.C), Shreveport (La.), and Ft. Myers (Fla.) were Whatever Michael and Steven Roberts decide to do next with name-brand hotels before becoming part of the Roberts Hotels their considerable business success and unflagging entrepre- Group. That strategy of working with larger, more established neurial spirit, it is certain to have the imprint that remains the hotel brands has helped to propel RHG into the hospitality heart and soul of each of their ventures. They will undoubt- mainstream in only five years. “We like the hotel management edly bring jobs and economic turnaround to distressed areas. side,” says Steve, “and we don’t think anyone manages as well But more importantly, they will give both their employees as we do, from an owner’s perspective.” and the neighboring communities reason to hope for a better tomorrow by the pride they take in their life’s work and by the That management acumen includes effectively balancing risk example they set.

18 E NTREPRENEUR OF THE YEAR 2007 Emerging FINALIST: By all Les Spero, Ph.D. (standing) Mark Stagen accounts, identity CEO, Founder CEO, President theft and credit card Rafi Spero: COO, Founder Emerald Health fraud are an increasing NeatReceipts Services risk and cost to Philadelphia Marina Del Rey, Calif. consumers and Founded: 2002 Founded: 2002 businesses alike. Bruce FINALIST: Like many people, Rafi Spero FINALIST: In Hansen is was often faced with the problem of 2002 Mark helping to organizing receipts for business reports. Stagen rec- deliver a He believed there had to be a way to use ognized the solution. technology to manage the paper mess. shortage of His father, Les, agreed, and the pair nurses nation- ID Analytics’ pitched the idea to seasoned software wide and had Identity Risk developer David Gitlin. a mission to Management provide tempo- solutions provide The NeatReceipts Scanalizer scans rary staffing ser- a cost-effective receipts and other business and personal vices to hospitals way to manage documents, then converts the images to by placing nurses Bruce Hansen identity risk and text files, searches the files to extract on long-term CChairman,hairman, CCEOEO prevent identity pertinent information, inserts it into a staffing assign- ID Analytics, Inc. fraud throughout spreadsheet and stores it in a database on ments. His com- San Diego the customer life- a PC. The company marketed its scan- mitment to having Founded: 2002 cycle by applying ner/software product in 2003 at a kiosk a positive impact on the health services its one-of-a-kind at Philadelphia International Airport, industry and providing an enriching advanced pattern recognition tech- targeting business travelers. career experience for his employees has nology. ID Analytics’ cross-industry Within a year, Les and Rafi Spero enabled Stagen to grow Emerald Health approach detects behavior patterns from opened a second kiosk and began selling Services from a single traveling nurse in multiple perspectives rather than just a their product on TigerDirect.com. Today 2002 to more than 600 nurses on assign- single company or industry. By more the NeatReceipts Scanalizer is available ments at more than 250 hospitals. accurately separating fraudsters from at 16 kiosk locations and genuine customers, ID Network mem- Emerald identifies qualified nurses in is distributed by online bers can open more legitimate accounts well-staffed areas and recruits them to and traditional retail- more quickly, save millions of dollars in work in areas with shortages. Travel and ers, including Staples, real time, and protect valued customers. housing expenses are paid, and compen- Office Depot, sation is competitive. Key to Emerald’s Under Hansen’s leadership, ID Analytics Office Max, success is its geographic focus, devel- experienced a compounded annual CompUSA, oping relationships with hospitals and growth rate of 185 percent for the three and Amazon, apartment buildings so that nurses can years ended in 2006. The company is as well as stay in the same city and housing when delivering its solutions to six of the neatreceipts. changing assignments. top 10 credit card issuers and four com. The of the top five wireless carriers, company has Stagen had no outside funding, but in the as well as retailers, government also added Neat five years since its founding, Emerald agencies, and health care pro- Business Cards, has grown 400 percent, averaging an viders and earlier this year which scans cards enviable 50 percent increase year-over- secured $20 million in financ- to organize year. An impressive 70 percent of the ing to fuel new product contacts. business comes from referrals. Among development and expansion. competitors that are more than 20 years old, Emerald Health Services is ranked third in California and 15th nationally.

19 Energy, Chemicals & Mining Harold Hamm Chairman, CEO, Founder Continental Resources, Inc. Enid, Okla. Founded: 1967

rogressing from modest circumstances to head up Hamm went into business for himself in 1966 with a huge something big and important is not that unusual a amount of work ethic and determination and one small Ppersonal success story in the oil industry. A quick used water pump truck he bought with a cosigned note at path to wealth has seduced many, and many have hit it big. the bank for $1,000. He began by hauling wellfield fluids But Harold Hamm stands out from the pack. and servicing drilling rigs. The venture was the beginning of a progression of businesses, one of which became One of 13 children and largely self-educated, Hamm has Continental Resources, today a leading independent oil become known as one of the oilfield service industry’s and natural gas exploration and production company with important innovators and role models as well as a staunch operations in the Rocky Mountain, mid-continent, and Gulf advocate and defender. Coast regions of the U.S.

20 E NTREPRENEUR OF THE YEAR 2007 “My family moved to Enid when I was a junior in high directionally so that the bore could be drilled horizon- school,” Hamm recalls. “The drilling industry really caught tally—a technology that has been immensely important in my imagination. There were boom times in Enid then, and shortening the time it takes to develop successful wells and I was intrigued by the wealth that oil could create. Not make them commercially feasible. “Many companies said it having been around the oil industry before and then sud- couldn’t be done,” Hamm says. “I was convinced it wasn’t a denly being exposed to it was more than just interesting— novelty as most others thought.” it was exciting.” In 1983 Hamm’s company drilled 16 wells for its own Hamm wanted to get into exploration and production, but account under the town of Enid, using directional drill- had neither the formal education nor the financial backing. The first big oilfield he developed was the Cedar ing. But he was both ambitious and eager to soak up all the Hills Field in North Dakota in 1995—at the time the larg- knowledge about the science of the business that he could, est onshore discovery in the United States in 23 years. A beginning in the oilfield service industry. subsequent find, the Bakken Field in Montana, is expected to be even larger. Hamm developed both of them using Hamm has been an important innovator from the early days. horizontal well drilling. As of the end of 2006, 86 percent “Operating a company in an ethi- of Continental’s estimated proved reserves were cal manner was really important located in the Rocky Mountain region. to me and was pretty much the business plan for my first com- Hamm and the oil industry have weathered some pany,” he explains. “In the early tough times together. In the late 1990s the govern- 1960s the oilfield service indus- ments of Venezuela and three other countries had try was an unscrupulous environ- been dumping cheap crude oil in the U.S. at less ment, and I didn’t want to identify than the cost of production to force high-cost pro- with that. Our high-integrity ducers and those with marginal wells out of busi- approach brought a fresh outlook ness. Hamm led a coalition that brought a trade to our customers, and soon they case against them. “That time was difficult for didn’t want to do business with many people,” Hamm explains. “There were exits anyone else. I feel we established a new from the business and a lot of hardship and unem- a new plateau of integrity for ployment, but our the entire oilfield service indus- case succeeded.” try. There were definitely some “Operating a company in an times of self-doubt, but it worked.” Hamm had a number Hamm has built his small one-truck busi- ethical manner was really of mentors over the ness into the largest provider of oilfield fluid years, including transportation in Oklahoma and the fifth- important to me and was engineers, geolo- largest well servicing contractor in the U.S. gists, and treatment pretty much the business specialists who were The big next step for Hamm was entry instrumental to his into exploration and production—drilling plan for my first company.” success. “Most of the his own leases and working as a contract people in the indus- driller. Hamm met the classic definition of try who I became a wildcatter: someone engaged in speculative oil drilling in involved with have been very supportive,” he says. “I’ve areas not known to be productive. His first wildcat found found that in dealing with others, especially your employ- the Aline Oakdale Oswego field and came in at 75 barrels ees, the most basic and important thing is to treat them of oil per hour; his second made 100 barrels per hour. But fairly and have a high regard for what they contribute.” Hamm also took the risks inherent in the oil patch—his lon- gest dry-hole streak was 17 in a row. His hardworking nature—and persistent belief in doing things a better way—have lifted Hamm to a respected Today Continental Resources uses horizontal drilling and position as an astute oil finder, a philanthropist, and the other modern technologies such as fracture stimulation to leader of a prominent and successful company. Continental unlock resources from unconventional geologic forma- Resources ended 2006 with revenues of $483.7 million, and tions. Hamm and a small handful of others were the early in May of this year Hamm led the company’s IPO. champions of refining the technique of using a rig to drill

21 YEARS OF EXCELLENCE 21 Energy, Chemicals & Mining FINALIST: FINALIST: In 2000, the French oil com- Dave Warren Reinvigoration of pany Total, which had acquired Belgian President, CEO a 90-year-old national oil company Fina, decided to Energy Alloys LLC company sell its Dallas-based U.S. refining and Houston, Texas can be a tall marketing assets. It couldn’t have been a Founded: 1995 order, even worse time in the industry. for some- FINALIST: When Dave Warren and his one with Refining expert Jeff Morris, a 25-year two co-investors founded Energy Alloys an entre- Fina veteran, was tapped to represent the in 1995, they left stable, well-paying preneurial selling company. Enter potential buyer jobs to establish an oilfield metals distri- spirit as David Wiessman, a successful entrepre- bution company that was different. Their deeply neur in Israel. As CEO of the family- target customer base was equipment ingrained controlled Alon Israel, Wiessman had manufacturers who produce and sell H. Craig Clark as Craig introduced the convenience store con- downhole tools to the oil and gas drilling President and CEO Clark’s. cept to Israel with such familiar brands and exploration industry. Forest Oil Corporation as Pizza Hut and KFC. In 2003, Warren had labored in the oilfields Denver, Colo. Forest Founded: 1916 of the Gulf Coast region, and after Oil college worked in the oilfield equip- Corporation had come a long way, ment manufacturing industry, so he but on the wrong road. It had lost knew that no one in this specialized its focus on old-fashioned oilfield wholesale distribution industry was expertise and operations knowledge, offering high-level customer service. and investor confidence was flag- Business relationships were typically ging. With a background as a field Jeff Morris (right) transaction-oriented and adversarial. hand in the East Texas oilfields The business model of being a value- and long management experience, President, CEO David Wiessman added supply chain partner that pro- new president and CEO Clark moted longer-term business alliance knew the business. He also knew Executive Chairman Alon USA relationships and just-in-time inventory the company needed a complete arrangements appealed to him. strategic overhaul. He was up to Dallas, Texas the challenge. Founded: 2000 Energy Alloys’ success has been a trib- ute to Warren’s belief in cre- Clark reduced debt and costs, ating harmony and growth The buyout of Fina’s refin- reallocated capital spending, and reor- out of challenging circum- ing operations by Wiessman resulted in ganized business units. He ended the stances. The company the creation of Alon USA. Morris moved spending associated with unproductive has expanded to Canada, to the buyer’s side of the table and put up exploration and walked away from major England, Scotland, and the entire proceeds from his 401(k) sav- international monetary commitments. Singapore, and ings plan to help the deal. Wiessman and All employees now have an equity posi- has survived two Morris organized a major turnaround for tion in the company. significant indus- the company and in 2005 took it public. try downturns. After decades of poor stock perfor- Under their leadership, Alon USA has Today it is the mance, Forest Oil shareholders have grown its starting equity of $7.5 million leading com- received a 162 percent return on stock and 95 percent debt to more than petitor globally ownership from three years ago. The $1.4 billion of market cap and raised the in its industry company is now one of the best per- productivity of its major refinery from niche and has forming stocks among its oil and gas near the bottom of the list of 92 facilities increased rev- industry peers and has become the larg- in 1989 to number six. est Denver-based oil and gas company. enues nearly tenfold since 2002.

22 E NTREPRENEUR OF THE YEAR 2007 Financial Services Ronald J. Kruszewski Chairman, President, CEO Stifel Financial Corporation St. Louis, Mo. Founded: 1890

hen Ronald Kruszewski took over the leadership That rallying cry said it all about Kruszewski and about the of Stifel Financial Corporation it was an extraordi- future of Stifel. The company has been out of the foxhole for Wnarily difficult moment in the company’s history. years and enjoys a comfortable perch on the hill. Since 1997, The company was shrinking and faced significant litigation Kruszewski has reinvigorated the company with his entrepre- with the IRS. Because of its problems, the then-107-year-old neurial spirit and clear-eyed perspective, guiding Stifel on a company was rumored to be for sale. trajectory of consistent growth that has included 11 straight years of record revenues—from $122.8 million to more than Kruszewski, the new president and CEO, was a mere 38 years $800 million expected this year—and a nearly sixfold increase old, so you might think he would temper his remarks to the in the value of the company’s stock. troops. But Kruszewski’s message was anything but tempered when he announced: “We are getting out of the foxhole and we Kruszewski is not surprised at the success. “People given a are charging the hill.” challenge like that are going to respond,” he says. “People do

21 YEARS OF EXCELLENCE 23 not want to feel they are in the bunker.” Besides, he says with tory with the addition of the Legg Mason Capital Markets a laugh, “At 38, I didn’t know any better.” business from Citigroup Inc. The transaction effectively dou- Actually, Kruszewski was well-suited to his task. He had spent bled the company’s size and increased its geographic footprint 10 years “preparing,” as he puts it, through his work at vari- while significantly enhancing its capabilities. ous companies, including serving as chief financial officer at The added resources in investment banking, research, equity the Robert W. Baird & Co. investment firm. His experience sales and trading, and taxable fixed income sales and training has encompassed private client sales, asset management, cor- have helped Stifel become one of the nation’s premier inde- porate finance, trading, mergers and acquisitions, legal and pendent brokerage and investment banking firms and one of compliance, operations, information technology, and finance. the largest domestic equity research franchises outside of Kruszewski also has advised several financial institutions on Wall Street. strategic initiatives. And earlier this year, Stifel broadened its reach by acquiring Every bit of his experience—not to mention his confidence— Ryan Beck & Co., Inc., a regional brokerage firm based in was called into action at Stifel, where he was challenged to New Jersey. The addition of Ryan Beck has made Stifel the bring a new spirit to a company steeped in tradition. 12th largest brokerage firm in the country.

Founded in St. Louis in 1890, Stifel had a All of these achievements, Kruszewski long-established philosophy of investing “You can’t acquire says, are due to the power of human based on trust, understanding and solid, capital. “You can’t acquire people,” studied advice. Kruszewski had no intention people. You have to he says. “You can acquire widgets. of changing any of that, but it was his task motivate them.” You can acquire land. You can acquire to chart new paths up the proverbial hill. He assets. But you can’t acquire people. outlined a Platform for Future Growth that You have to motivate them.” included a commitment to attracting and retaining talented associates, and substantial investments in Kruszewski’s attitudes toward business were developed early technology and communications tools. in life. He is the second oldest of four children, and the first in his family to go to college. He saw the importance of hard He also launched Stifel’s “Of Choice” strategy, which means work in the example set by his father, who supported the just what it says. “We want to be the advisor of choice to our family with three jobs—fireman, landscaper and barber. clients,” he says. “And the way we achieve our ultimate goal is to get entrepreneurial people to join the firm. If we can attract Though Kruszewski thought early on that he might become good people, the stock price will take care of itself.” a lawyer, he was infected by the finance bug in college. “The logical linear aspects of numbers appealed to me,” he says. Headlines about the company’s difficulties, however, did A CPA, Kruszewski received his BS degree from Indiana not do much to attract top talent. Clearly, changes had to be University in 1981. made. “We flipped the organizational chart upside down,” Kruszewski says. Associates were empowered and given an He met his wife, Sharon, in college, and credits her as another equity stake for their efforts. The strategy worked—for Stifel, model of success. The couple has four children, and Sharon its stockholders and its employees. “The employee owner- left a highly successful career in computer sales to become ship stake has increased by over a quarter of a billion dollars,” “the CEO of the family.” Kruszewski says with justifiable pride. “And we have created Kruszewski says the definition of success is a frequent topic 82 millionaires.” of discussion in the family. Money, he believes, is but a small A major turning point for the company occurred in 2005 when part of the equation, and he harkens to the lesson taught by his Kruszewski orchestrated the largest acquisition in Stifel’s his- parents: “If you want to get ahead, you have to work.”

24 E NTREPRENEUR OF THE YEAR 2007 Financial Services FINALIST: Early on, Geoff Davis realized FINALIST: Li Yu started Preferred Bank he could either spend most of his pro- with $20 million in start-up capital ductive years creating wealth for himself raised from friends, family and asso- and then using it to promote social good, ciates from prior business ventures. or he could spend all of his life improv- His vision was to create an indepen- ing the world by applying entrepreneur- dent platform focusing on the niche ial skills and business principles to solve Southern California market, serving social problems. That’s what drew him both the Chinese-American and main- to Unitus, a global microfinance stream segments. accelerator. Yu’s vision began to take shape when Davis met the co-founders of Unitus he was chairman of the board of the Todd Crosland FINALIST: Despite a during graduate school at Harvard and former California Pacific National CChairman,hairman, CCEO,EO, lack of familiarity became the president and CEO in 2001. Bank, a small bank that primarily FFounderounder with the foreign He immediately set out to address the served the Los Angeles ethnic Chinese IInterbanknterbank FFXX exchange market, biggest challenge facing microfinance: business SSaltalt LLakeake CCity,ity, Todd Crosland scaling the industry to meet the needs commu- UUtahtah launched Interbank of the 400 million working poor who nity. He FFounded:ounded: 22001001 FX (IBFX) as a were still beyond the reach of traditional oversaw way to trade cur- banking services. the opera- rencies directly instead of through a tional broker dealing desk. The approach drew The results have been tremendous. In turn- the attention of individual traders who just over five years, Unitus has built a around of asked to be a part of it. portfolio of 16 microfinance companies the bank, with loans, worth culminat- Crosland faced considerable difficulties more than ing in its implementing his ideas, including pur- Geoff Davis $150 million, to sale to chasing $100,000 worth of software that President, CEO 1.8 million people Security didn’t work. There was also the head- Unitus in six countries. Pacific ache of trying to make the technology Redmond, Wash. Li Yu Now Davis is Bank in perform reliably 24 hours a day. Perhaps Founded: 2000 Chairman, focused on achiev- 1986. The the most difficult challenge was trying President, CEO ing even greater dramatic to establish working relationships with Preferred Bank impact through growth banking partners, all of whom required Los Angeles, Calif. the Unitus Equity of the a minimum net capital to initiate the Founded: 1991 Fund, a $24 million Chinese- process. It took Crosland more than two early-stage venture American years to perfect the technology and the fund to demonstrate population in Southern California, relations with the company’s banking to the world’s along with the general consolidation partners, and he invested $500,000 capital markets in the area’s banking industry, cre- of his own money before seeing any that microfi- ated what Yu believed to be an under- revenue. nance is an served commercial banking market investable Today IBFX has 12,000 custom- for small- and mid-sized companies. asset class, ers in more than 135 countries, and not just a What started with a single branch has Crosland wants them to succeed. charitable grown to 11 branches and assets of The company provides a variety cause. $1.35 billion. Preferred Bank listed on of free tools and resources, includ- the NASDAQ in 2005 and has consis- ing debit and credit cards, an online tently delivered strong performance, forum—both industry firsts—chart pat- including a stock appreciation of 60 tern recognition software, and an online percent. forex university.

21 YEARS OF EXCELLENCE 25 Health Sciences Pamela Morris President, CEO CareSource Management Group Dayton, Ohio Founded: 1985

nyone who has ever told Pam Morris “you can’t” has require an act of Congress, Morris and Ohio delegates quickly likely felt sparks from the firestorm of her resolve to met with legislators to explain the health plan’s mission—and Aprove otherwise. When Morris, CEO of the manda- its plight. They had just two weeks before Congress recessed tory Medicaid managed-care plan now called CareSource, and needed a unanimous vote to avoid losing vital federal was told there was no way around a federal regulation that Medicaid funds. The exemption passed. one-fourth of the plan’s enrollment had to be commercial customers—a requirement she felt would diminish its mission to The hurdle was just one of many in Morris’ 21-year tenure provide health care to the underserved—she took her case to with the Dayton, Ohio-based HMO, each of which she’s met Washington. with the same singular focus on success. “Failure wasn’t anything I ever thought about, which was probably good,” she says Soon after, the federal Medicaid office received a fax from with a laugh. Air Force One. Ohio Rep. Dave Hobson and then-President George H.W. Bush were inquiring whether a waiver could be Today CareSource serves more than 525,000 managed care granted. When the office responded that an exemption would consumers, making it the largest Medicaid managed care

26 E NTREPRENEUR OF THE YEAR 2007 health plan in Ohio—with over half of the state’s lions of claims annually, with a turnaround for clean claims Medicaid managed care market—and one of the that significantly exceeds regulatory standards. nation’s largest, recently expanding into Michigan and Indiana. Hiring those attracted to the organization’s cause, Morris believes CareSource employs the industry’s best. “We’re In 1989, when Morris created what was then the a mission-driven company and really care about making a Dayton Area Health Plan, she had to overcome difference,” she says. “That resonates with our employees, the unpopularity of managed care, and convince who work at CareSource because it feels good to go home doctors and hospitals it would work for Medicaid knowing that you really did help someone.” CareSource staff recipients. Because the concept was untested and investments include training through CareSource University, risky, the Ohio Department of Insurance increased performance bonuses, and tuition reimbursement. the price tag of its HMO license from $50,000 to $300,000. The move forced Morris to raise addi- Despite significant investments, CareSource’s administrative tional money, since the plan’s development grant costs are among the lowest in the country at 7 percent, while had long since been depleted. Then, the Legal Aid most publicly held competitors have cost rates of 10 percent. Society of Dayton filed a class-action lawsuit to CareSource also has the highest customer satisfaction rating stop the plan because it didn’t think enrollment of any Medicaid managed-care plan in Ohio, which Morris should be mandatory, even with an opt-out pro- credits to a number of consumer-focused programs. Babies vision. The suit was settled when the company First rewards expectant mothers for obtaining prenatal care allowed Legal Aid access to its records. with gift cards to local stores. And a 24-hour nurse line, CareSource 24, pro- Morris didn’t set out to be an innovator. She began vides consumers with “It feels good to go her career as a county social worker, which pro- answers to medical vided insight into what those without access to questions. In one year, home knowing that health care experience. “It was one of my board nearly 60 percent of members, an entrepreneur, who told me what I was callers who said they you really did help doing developing this company was entrepreneur- would have gone to someone.” ial,” relates Morris. “I didn’t really think about it an emergency room that way.” were directed to a more appropriate level of care. The cost savings have made it so Morris’ belief that managed care could improve successful CareSource markets it to other HMOs through a health care for the underserved continued to fuel for-profit subsidiary. her passion. She met each challenge and developed a model that is pleasing patients and providers In 2006 Morris created the CareSource Foundation to further alike. Observing that many HMOs in the early ’80s the legacy of the CareSource mission by seeking solutions failed because they didn’t make the right invest- to some of the most pressing health issues facing communi- ments, Morris was determined to avoid that mis- ties today. Funding priorities include issues of the uninsured, take. She committed to serving clients with a better prevention and intervention in community health issues, and model, one that invested in two important resources—people critical trends such as childhood obesity. and technology. Morris is not content to rest on her laurels. She is currently Morris made a key strategic investment in building strong positioning the company to take its experience to other provider relationships by setting new market rates for reim- Medicaid populations that can benefit even more from the bursements to 105 percent. “By being a tax-exempt nonprofit managed care model, such as the aged and people with dis- we can pay our providers more, which they obviously like,” abilities. “I’ve devoted my life to this cause and there’s so says Morris. And paying providers more enables them to offer much more to accomplish,” she says. additional services. It’s a fairly safe bet that Morris will continue to be success- Investments in technology also give CareSource a decided ful in breaking down barriers to health care. “My philosophy edge. An electronic claims processing system allows providers has always been that as long as I’m having fun, feel like I’m to check claims status any time on the CareSource Web site. making a difference, and I’m challenged, I can’t think of any- Administrative efficiencies allow CareSource to process mil- thing else I’d rather do.”

21 YEARS OF EXCELLENCE 27 Health Sciences

Sachiko Kuno (left) FINALIST: When FINALIST: Randy Thurman was think- President, Chair, Co-Founder Jim Pearson joined ing big when he decided to integrate 14 Ryuji Ueno Suros Surgical separate companies that he took public CEO, Co-Founder Systems, the com- within a year as a single global research- Sucampo Pharmaceuticals, Inc. pany had one based medical technology company. Bethesda, Md. prototype He was just getting started. The result Founded: 1992 device for is VIASYS Healthcare Inc.—the world minimally leader in respiratory and neurological FINALIST: Drs. Ryuji Ueno and Sachiko invasive diagnostics, with growing positions in Kuno met in a lab conducting research breast several therapeutic areas, including sleep on the potential of prostones, a class of biopsy, and orthopedics. compounds that derive from functional Jim Pearson no no man- Thurman has addressed a number of fatty acids natural to the human body. President agement challenges in building VIASYS. In 2003 Their work resulted in more than 900 Suros Surgical team or he created an international operating international patents and the Japanese Systems, Inc. funding, structure with five regional headquar- market launch of their first product, Indianapolis, Ind. and a ters worldwide, each with its own direct Rescula eye drops—an anti-glaucoma Founded: 2000 market sales or distributor operations. The inter- drug now sold in 40 countries. in which national business accounts for 40 per- Johnson & cent of total revenues and in 2006 grew In 1996 Ueno and Kuno founded Johnson had been the sole device pro- 30 percent over the prior year. Sucampo Pharmaceuticals in order to vider for nearly a decade. leverage their technology to the U.S. To compete with large global companies Their foray into the American market Pearson immediately hired a manage- well-established in the market, Thurman initially proved frustrating when a ment team, raised $19 million through invested over $100 million in product strategic partnership fell through and angel investors and venture capitalists, development in VIASYS’ first three their products took longer to get FDA and took the device to market. The Suros years, as well as in new business seg- approval than expected. In MRI-guided breast biopsy eliminates the ments that could generate high rates of 2006 their second need for radical procedures such as sur- growth. Today, the company is first in prostone product, gical biopsies for diagnostic purposes. nearly every product segment where it Amitiza, for the treat- Suros became profitable within its first competes and was able to complete eight ment of year and has sustained hyper-growth for acquisitions in a two-year period funded five consecutive years, including three from operating cash flow. consecutive years of 70 percent annual growth. Randy Thurman In 2006 Pearson helped orchestrate the Chairman, $240 million merger of Suros with President, CEO Hologic, Inc.—the first time an imag- Founder ing and an intervention company have VIASYS joined to deliver more complete solu- Healthcare Inc. tions for better clinical outcomes due Conshohocken, Pa. chronic idiopathic constipation, received to early breast cancer detection. Suros Founded: FDA approval. Ueno and Kuno com- continues its quest to develop compas- 2001 pleted an IPO filing in June of that year. sionate biopsy devices and in 2007 Revenues from Amitiza have allowed launched Celero, the first ultrasound- Sucampo to develop and test other prod- assisted biopsy device. ucts, including two in preclinical testing with potential uses for patients with cystic fibrosis and Alzheimer’s disease.

28 E NTREPRENEUR OF THE YEAR 2007 Media, Entertainment & Communications Michael Walrath CEO, Founder Right Media New York, N.Y. Founded: 2003

tarting out in one direction and ending up taking ception of what went on in the business world was a lot of dry another is consistent with the flexibility and openness numbers and just punching a clock.” to experience Michael Walrath has always had toward S But his experiences building his own company have proved life. When he earned a degree in English literature, it was with the expectation of becoming a teacher. But after graduation he that innovators can make business so much more. “At its best, worked at a number of different jobs where he learned about it’s dynamic, creative and exciting, and you can do good in the sales and marketing and how to manage a business. world,” Walrath says.

“Business wasn’t something I considered to be interesting or While growing up, the measure of success in Walrath’s family anything I expected to see myself doing,” he admits. “My per- was never whether someone was making money, it was

21 YEARS OF EXCELLENCE 29 whether what he was doing was something that mattered. For now trade digital media on the Right Media Exchange. Walrath, that is the litmus test. “I always felt that was a standard to live up to,” he says. “I never kept a job that I didn’t The strength of Right Media’s model hasn’t gone unnoticed feel mattered in some way, where I wasn’t doing something as some of the online industry’s largest players seek to revo- important that made a difference.” lutionize the media buying and selling landscape. In October 2006 Yahoo! acquired a 20 percent interest in the company. In Walrath’s first job out of college was with the online adver- April 2007 it announced acquisition of the remaining equity tising company DoubleClick. When DoubleClick struggled interest in Right Media for $680 million, with Walrath serving through the post-Internet boom years and decided to merge as a senior vice president at Yahoo! with another company, Walrath set out to build his own business and launched Right Media in 2003 While he sees challenges in maintaining the core DNA that has driven Right Media’s success, Walrath says there is “com- The company began as a consultancy that produced good mitment on both sides to get it right, to capture and preserve results for its customers, but Walrath felt hamstrung by the magic of our entrepreneurial spirit.” the business model and the following year repositioned Right Media as an auction-based ad network. But it’s not in That commitment includes Right Media’s employees as well Walrath’s DNA to be content if he feels that something can be as Walrath. “There are hundreds of people who helped build better. And so he asked himself, “What if we build some tech- this company,” he says. “They all embrace the same ethos nology that makes this more efficient?” of not taking short cuts or finding destructive ways to make money. We’ve found ways to succeed while being That “what if ” approach is endemic at Right Media, where constructive.” real world experience is valued as much as a business degree. “We used Walrath understood the risks he faced to say, ‘No business school answers “If you’re not making in creating Right Media’s business here,’” he notes. “That’s not a knock on mistakes, you’re not model. He explains his drive to suc- business schools. If I had spent time in ceed as being willing to fall on his business school, I might not have made taking enough risks and face, stretching for something that so many mistakes. But at the same time made him fly out of bed in the morn- there was an advantage to not having not trying hard enough.” ing rather than playing it safe and not formulaic answers to questions. We being fully engaged. chafed when someone said, ‘Look. This Walrath’s credo is similar to that of many entrepreneurs: is just the way it’s done.’ Our response was always, ‘That’s not embrace your own experience, follow your passion, and don’t a good enough reason.’” accept anyone else’s playbook. He admits to being wrong So the company evolved once again. In 2005 Walrath aban- more than being right at times, but considers mistakes to be doned the traditional model of the online ad market for important data points for course correcting. “You’re going to interactive media, creating an open advertising exchange that make lots of mistakes starting in business,” he says. “If you’re levels the playing field between buyers and sellers. Right not making mistakes, you’re not taking enough risks and not Media’s open application programming drives efficiency by trying hard enough.” providing a common platform that enables buyers and sellers But it’s important, Walrath believes, for would-be entrepre- to connect to each other and gain open access to media, the neurs to start business in areas in which they have expertise. ability to see the market as a whole, and a way for them to “When you’re an expert in your field and surround yourself maximize value on every ad call in a real-time auction. with other experts in their fields, you can make countless mis- The interfaces help to foster transparent relationships and takes and course correct in a way that will lead to success.” build a sense of community among participants, a model that Walrath also stresses the need to strike a balance between runs counter to more established advertising network systems, listening to those with expertise and learning from them, “but where supply and demand information is not shared. As more not putting yourself in a position where you can’t act because partners started running their businesses on the platform, a you’re paralyzed by others telling you that you can’t do it that community formed, and the Right Media Exchange was cre- way,” he stresses. “Every time you tell me it’s impossible, I ated. More than 30,000 advertisers, publishers and networks want to do it even more.”

30 E NTREPRENEUR OF THE YEAR 2007 Media, Entertainment & Communications

James F. FINALIST: A vacation cruise to Alaska Andrew D. Ory Geiger where there was no service for his President, CEO, Cbeyond, Inc. BlackBerry has led Bill Marks to com- Founder Chairman, pletely change the way people live and Acme Packet CEO, work at sea. Armed with entrepreneurial Burlington, Mass. Founder experience gleaned as the founder of Founded: 2000 Atlanta, Ga. DirecTV, Marks created SeaMobile to Founded: 1999 provide wireless service to cruise ships. FINALIST: The initial insight He assembled a team of veterans in FINALIST: The telecommunications propelling engineering, sales, marketing, opera- market was in decline when Jim Geiger success and tions and finance to create a high quality launched Cbeyond with the goal of dominance for wireless solution that works in the sea’s giving small businesses access to Acme Packet in harsh environment. Then he developed advanced services previously avail- its market was partnerships for equipment and network able only to large businesses. Despite Andrew Ory’s access, established carrier roaming the gloomy investment picture Geiger realization that all real-time interactive agreements, and worked to build brand secured funding in 2000 and the fol- communication needs to be supported awareness. lowing year launched his first market, across multiple IP networks. The point at which service provider networks— Atlanta. Just five years later, Geiger took To expand its global reach and prod- voice, video and multimedia—meet Cbeyond public. uct line SeaMobile acquired Maritime to pass services between each other is Telecommunications Network, the lead- Cbeyond is an IP-based managed ser- the weak link in the service delivery ing provider of global VSAT satellite vice provider delivering integrated process. communications services, and Geolink, packages of more than 20 local and a pioneer in satellite-based broadband long-distance voice as well as mobile In 2002 Acme Packet introduced the communications and networking ser- and broadband Internet applications, Session Border Controller (SBC), but vices in Europe and Africa. including BlackBerry voicemail, e-mail, from the outset potential customers had no SBC understanding or bud- Web hosting, fax-to-e-mail, data backup, William D. Marks Today geting. Ory had to create a market file-sharing and VPN, managed over a Chairman, CEO SeaMobile segment where none existed. First he private, 100 percent VoIP facilities-based SeaMobile offers remote gained understanding of customer network. Customers receive services Enterprises access to technology and infrastructure. Then, at the right price point and an online Seattle, Wash. mobile marshalling the energy of creative account management tool allows them Founded: 2005 phones, engineers, he developed a product to manage their services without the PDAs, lap- suite that has the protocol breadth, need for an IT staff. tops, live television, Internet cafes, feature depth and configuration financial services, and live televi- Geiger has expanded his com- to meet the world’s largest carrier sion and enterprise services pany to Dallas, Ft. Worth, Denver, requirements. with the addition of Houston, Chicago and Los SeaMobile Portal and Angeles, and Cbeyond Under Ory’s leadership, Acme Packet Wave Entertainment. now boasts more than filed for an IPO in 2006, the first U.S. The company that 27,000 customers and a company to go public in the carrier Marks built has 99 percent retention rate. telecom equipment space in six years. 95 percent market Cbeyond continues to seek Not only is Acme Packet the SBC share and provides to increase market share market progenitor, it is dominant in connectivity and and expansion into the industry, ending 2006 with more communication other regions as than 360 service provider customers in services to more well as to offer new 75 countries, representing 133 percent than 300 ocean- application to its revenue growth. going vessels customers. worldwide.

21 YEARS OF EXCELLENCE 31 Real Estate, Hospitality & Construction William W. Gay CEO W.W. Gay Mechanical Contractor, Inc. Jacksonville, Fla. Founded: 1962

ike many men of his generation, William Gay was Henley & Beckwith on the construction of a gymnasium at raised to believe in the free enterprise system and with the University of Florida. “Mr. Beckwith turned out to be my La strong desire to do something constructive that he mentor as far as mechanical construction was concerned,” says could build or put his hands to. So after leaving the military Gay, who continued working for Henley & Beckwith while at the end of World War II, Gay decided to pursue a degree in he studied. He graduated as a plumber apprentice in 1949 and engineering received his BSE from the University of Florida the same year.

There was no G.I. Bill for those who had served, as Gay did, After graduation Beckwith offered Gay a job in Orlando at the in the Merchant Marines. “I didn’t have a daddy that could Naval Deepwater Sound Lab. Gay next worked on a hospital pay for my college education, which turned out to be a bless- in Vero Beach, a housing project in Valdosta, Georgia, and ing for me,” says Gay. “I had to go to work.” To help pay his then an engineering complex at Eglin Field, each providing way through college, Gay found part-time employment with additional contracting experience. Eventually Gay returned to

32 E NTREPRENEUR OF THE YEAR 2007 Jacksonville and worked on what was at the time the tallest pentry staff as well as specialists in a range of areas, including structure in Florida, the Prudential Insurance Co. building. heating and cooling, refrigeration, welding, computerized “From there I moved into the office as an administrator, and fabrication, controls and automation, plumbing and piping, I’ve been doing that ever since,” he says. petroleum storage and underground utilities.

In the early 1960s, Henley & Beckwith merged with another Despite his many years of success, Gay remains humble. mechanical contractor from New York and decided to concen- “I’ve been so blessed,” he explains. “People ask me how I had trate solely on industrial work. Since Gay’s experience was planned my business. I didn’t plan any of it. I’d turn a corner mainly in commercial work, he approached Beckwith and and there would be another opportunity. All I had to do was explained his intention to form his own company. Beckwith take advantage of it.” not only supported the move, he even offered Gay a commercial job that Beckwith’s company had just been awarded. Gay focuses as much on people as he does on business. It has always been his intention that his employees would own “That helped me a great deal in getting started,” Gay says the company when he is gone. W.W. Gay was among the first of his employer of 16 years, “because I had been running companies to develop an Employee Stock Ownership Plan; in Henley & Beckwith and had relationships and contacts with existence since 1975 the ESOP currently owns 48 percent of customers. So it was natural that I would be able to just pick the company’s stock. In addition, the company sets aside 15 up from there, especially since Mr. Beckwith didn’t look at percent of income each year for employee profit sharing. me as a competitor.” During his 60-year career Gay has emulated his mentor by Bill Gay founded W.W. Gay helping others who have wanted Mechanical Contractor with to start their own business. He the help of three partners who “I’d turn a corner and there would provides capital and administra- cosigned a $200,000 line of be another opportunity. All I had tive services, retaining at least 51 credit. The fledgling company consisted of Gay, three contrac- to do was take advantage of it.” tors, and one office employee. “The first man I hired,” Gay notes, “is still with me. He’s 80 years old and works three days a week.”

Within a year, W.W. Gay had 15 employees. At the end of two years Gay was able to buy back the company’s stock, delivering his partners a 100 percent profit. He never used the line of credit, relying instead on cash flows from his customers.

W.W. Gay now has nearly 1,000 employees, with offices in Gainesville, Orlando and St. Augustine, Florida; and Little Rock, Arkansas. It ranks in the top 10 in revenue among mechanical contractors in the United States, due in large mea- percent ownership in the ventures. When they are profitable, sure to Gay’s unwavering focus on upholding high standards the entrepreneurs buy back Gay’s shares. Of the 24 busi- of service, quality assurance and reliability. The company’s nesses he has helped to date, only five have failed and 15 have reputation is so important to him that he will address prob- already purchased their stock. lems even at his expense to ensure customer satisfaction. In some instances Gay has created his own competitors. That focus on quality extends to every aspect of W.W. Gay. “Though they are competitors,” he explains, “they are friendly Although Gay works with general contractors on commercial ones. That doesn’t mean they won’t be low bidders, but I also projects, industrial customers prefer a turnkey job. To provide feel we get better quality competitors that way. So if they pro- the necessary skills and services W.W. Gay employs a full car- duce good quality jobs, their prices will be closer to ours.”

21 YEARS OF EXCELLENCE 33 Real Estate, Hospitality & Construction William C. Bayless, Jr. FINALIST: The business model that has President, CEO produced success for Allen Tate is to American Campus Communities combine all real estate services required Austin, Texas by a customer under one umbrella. Founded: 1993 From mortgages through insurance and title offerings to handyman services, Finalist: Real world experience, clear relocation assistance and everything in understanding of what had not been seen between, both buyers and sellers are well as a separate real estate market segment, served by the company. Matching his and willingness to stay on course has vision with a legendary work ethic, Tate led Bill Bayless and American Campus now owns the largest real estate firm Communities (ACC) to lucrative leader- in the Carolinas—and the fifth larg- ship in the market. Richard Fain Chairman, CEO est independent real estate firm in the Bayless saw off-campus student hous- Royal Caribbean Cruises, Ltd. U.S.—with more than 40 offices, 1,500 ing dominated by absentee landlords Miami, Fla. realtors, and $6.78 billion in sales last who provided meager accommodations Founded: 1968 year. with little or no maintenance and scant The son of a grocery FINALIST: customer service. Mainstream real estate Although the ship wasn’t store owner from a investors largely ignored the student foundering when Richard Fain took the small town in South housing “niche.” Bayless’ experience helm at Royal Caribbean Cruises, Ltd. Carolina, Tate managing private student housing led (RCCL), a decision had to be made moved to him to believe students would pay for whether to remain a niche player Charlotte and higher-end properties, so he and two or become a major force in the opened a one- partners formed the company that was to world’s cruise line market. The man, one- become ACC. decision: RCCL was to become office real a leader. With his intelligence, estate and The first challenge was to establish education, training and entre- credibility. In its infancy the company insurance preneurial drive, Fain was the right company. managed five assets. It then began person to lead the transformation. third-party development of facilities. His motto: Significant growth followed and by With a focus on customer service Fain “If they’re 2001 ACC had a portfolio of $280 mil- spearheaded two significant initiatives. going to pay lion in student housing assets. Garnering First, the speed with which customer you $1.00, venture capital allowed calls were handled was increased so that always do Bayless to buy out his 80 percent were answered within 20 $1.25 worth partners, then com- seconds. Second, crews were upgraded, Allen Tate of work.” plete a successful IPO with high standards for hires and sig- Chairman and Founder Tate has in 2004. Since then nificant efforts made to retain them once succeeded the company has they were on board. Allen Tate Company Charlotte, N.C. by forging grown its value strategic from $350 mil- In 1997 RCCL acquired Celebrity Founded: 1957 Cruise Lines and Spanish cruise and partnerships, lion to more enduring through the ups and downs than $1.1 tour operator Pullmantur in 2006. From the four ships RCCL owned when Fain of interest rates and zoning issues, and billion, and entering new ventures through acquisi- what was joined in 1988, the company now has 34 active ships and seven more on order. tion. Tate was also the driving force once a niche in the creation of Reliance Relocation is now a main- The three brands are the leaders in North America and gaining momentum in Services, a major network for indepen- stream real estate dent brokers. investment. Europe and Latin America.

34 E NTREPRENEUR OF THE YEAR 2007 Services Harold “Max” Messmer, Jr. Chairman, CEO Robert Half International Inc. Menlo Park, Calif. Founded: 1948

n many ways, Max Messmer is a textbook entrepre- “I enjoyed my professional career at O’Melveny and Myers neur—which means, of course, that he often breaks the as a corporate lawyer but felt I would be more content in a Irules and contradicts conventional wisdom. No wonder people-to-people business, particularly one that represented a BusinessWeek article a few years ago called Messmer “the a significant entrepreneurial opportunity,” Messmer explains. contrarian.” “Robert Half was small but already had a respected name in accounting staffing, particularly full-time recruitment. I Case in point: At 31 Messmer was already a successful corpo- believed that by offering temporary staffing in accounting rate merger and acquisitions lawyer, yet he decided—against and finance at a very professional level, businesses would the strong advice of respected leaders in his firm—to get into overcome their fears of using temporary staff at higher skill the temporary staffing business. With the backing of two of levels.” his clients, he purchased Robert Half International from its namesake in 1986. Why did he take the risk? Messmer’s goal was to take the well-known franchisor and

21 YEARS OF EXCELLENCE 35 Services

build a company-owned operation by acquiring the indepen- Yet it’s Messmer’s childhood favorite, The Little Engine That dent franchises. He believed that specialized “white collar” Could, that provides enduring relevance to him. “The way you demand would grow. He also believed that going against the handle obstacles in your career defines your success far more conventional wisdom of the time—to franchise rather than than the way you handle the easy situations,” says Messmer. build a large company—was the most promising course to “I am a believer in the power of persistence and positive atti- capitalize on that demand. He was right. Under Messmer’s tude. I also believe in smart risk-taking and not listening to leadership, Robert Half has grown from annual revenues of those who tell you something can’t be done. We live in a cyni- $7 million to a $4.2 billion business. cal world; people are always willing to tell you why something won’t work.” Clearly, the initial strategy worked—as did Messmer’s subsequent strategies for continued growth. “The professional Messmer has a bottom-line philosophy that distills the man- segments are the fastest-growing areas of the staffing indus- agement lessons he has learned to a simple formula: “Success try,” Messmer says. “This was an untested concept when we as a business leader starts with hiring good people,” he says. acquired the Robert Half business in 1986 and decided to “You will develop what Bill Gates called the Spiral Effect. extend the strategy beyond financial staffing services to other Good people hire other good people and before you know it, professional disciplines such you have a formidable team.” as technology, marketing and creative, high-end office “I believe in smart risk-taking Messmer believes that the definition of administration and law.” “team” goes beyond the employee and and not listening to those extends to his or her family. “Building While defying the naysayers a business is a time commitment, and and striking out on an uncon- who tell you something can’t that often can mean time away from ventional path may have been the family,” he says. “I don’t think the first “contrarian” step be done.” the role of family in any successful Messmer took in building his person’s career can be overestimated. success at Robert Half, it was In my own case, the constant support hardly the last. In 2002, in the face of enormous criticism, he of my wife and family has been critical.” and his team started an internal audit and risk consulting business called Protiviti after hiring more than 700 former part- That belief has translated into Robert Half’s corporate culture. ners and other professional employees of Arthur Andersen. At annual senior leadership meetings, not only does the management team discuss strategy and long-term plans, Messmer One of the then-Big Five international accounting firms, meets with their husbands, wives and partners. “They are Andersen had fallen into disarray in the wake of the Enron partners in the success of the company, and we use this as an scandal. Messmer believed there was huge potential gain opportunity to acknowledge that vital role,” he says. for Robert Half from tapping the expertise of the Andersen employees. Once again his against-the-prevailing-wisdom It is yet another creative approach learned from life experi- approach worked. Today Protiviti contributes to a 14 percent ence and seldom taught in business school. But Messmer share in Robert Half’s total revenue. believes firmly there are many more lessons he has yet to learn. He subscribes to Henry Ford’s philosophy: Anyone With such success, it comes as little surprise that Messmer’s who stops learning is old, whether at 20 or 80. “Learning is a ideas are now the stuff of lesson as well as legend. In a very lifelong process,” Messmer says, “and it is even more critical real sense, he has rewritten the textbooks on entrepreneurship today in our age of rapid technological and economic change. and management. He is the author of several advice books, This is the key to managing a business that is successful over including 50 Ways to Get Hired, Managing Your Career for the long term.” Dummies and Motivating Employees for Dummies.

36 E NTREPRENEUR OF THE YEAR 2007 Robert O. Carr FINALIST: Founded in 1886 as Elliot Sainer Chairman, CEO Springfield Water Company, Aqua President, CEO, Founder Heartland Payment America has moved in a variety of direc- Aspen Education Group Systems, Inc. tions, including an attempt to transform Cerritos, Calif. Princeton, N.J. itself into a technology company in Founded: 1998 Founded: 1997 the 1980s and ’90s. When Nicholas DeBenedictis came on the scene in FINALIST: Aspen FINALIST: 1992, he recognized the company Education Group has Heartland was in an identity crisis. He put its genesis in Payment his background in water engi- 1989 when Systems neering to work and reformed Elliot Sainer was cre- Aqua America into its original became ated when mold as a water company. He CEO of Robert also brought a new approach. College Carr partnered with Heartland Bank to Health form a new kind of credit card proces- While most businesses focus on Enterprises sor. Carr believed transparent pricing a three-legged stool—customers, (CHE), a and a fair deal philosophy could level shareholders and employees— regional the playing field between small busi- DeBenedictis added a fourth leg: com- health-care provider of psychiatric ser- nesses and national retail chains while munity. He believes this “enlightened vices. It was evident to him that there growing market share. The bank con- self interest” has been key to the compa- ought to be better alternatives for help- tributed $1 million in capital and Carr ny’s success. Building trust and adding ing troubled youth than placing them contributed a portfolio of 2,500 mer- value to the local community has made in hospitals. Mt. Bachelor Academy, a chants representing about $500 million it easier to work with local government residential school for high school stu- in volume. officials, for example, to coordinate dents with emotional needs, was created efforts such as digging up streets for in Oregon and became the precursor of Three years later, Carr bought back 100 pipe replacement and pavement. Aspen Education Group. percent ownership of Heartland Payment Systems and completed a management Under DeBenedictis’ leadership, Aqua Based on the program’s success, Sainer buyout in 2000. In addition, he gave America has enjoyed a consistent his- helped start a wilderness program in about one-third of the company to top- tory of earnings and dividend growth. Utah and several other programs in the level employees and hourly workers. His community efforts, coupled with early 1990s. He wrote a business plan in They received stock options until the a growth-through-acquisition strategy, 1994 that culminated in the creation of a company went public in August 2005 youth services division of CHE. Under with a $1 billion IPO. As a result, 63 his leadership, the division was spun of Heartland’s employees at the time Nicholas DeBenedictis Chairman off to create Aspen in 1998. That same became millionaires. Today that year, two private equity firms bought a number is 75. Aqua America, Inc. Bryn Mawr, Pa. 75 percent interest in Aspen, and Sainer rolled over his equity into the new com- Carr believes the success of Heartland Founded: 1886 pany. In 2002, Warburg Pincus made Payment Systems—the sixth largest an additional $15 million investment to provider of payment services in the U.S. have enabled the company allow for further growth. and 15th worldwide—is due pri- to triple its customer base and increase its market marily to its direct sales team From 2000 to 2006, Aspen opened 15 capitalization from $200 of more than 1,450 people. new programs and acquired 12 more. million to approxi- They establish relationships Last year, it operated 33 programs in mately $3 billion, with the customer base and 12 states and the United Kingdom and making it the largest receive a significant percent- assisted more than 4,500 young people publicly traded water age of their compensation from every state in the U.S. and 32 company in from ongoing client revenue. countries. the U.S.

37 Technology Marc Benioff Chairman, CEO Salesforce.com, Inc. San Francisco, Calif. Founded: 1999

hen some of the technology industry’s titans Web companies like Google, eBay, and Amazon.com were and first-movers predicted software as a service intuitive and easy to use, and people had become comfortable Winstead of a product as recently as two years ago, using the Web for personal transactions. I thought manag- Marc Benioff and Salesforce.com, the company he founded ing business processes on the Web should be this easy and more than six years earlier, had already cleared the path. “The believed that we could take the architecture that it created and era of the traditional software ‘load, update, and upgrade’ busi- deliver an entirely new model. The Internet provided a new ness and technology model is over,” Benioff has said. As a pio- way to deliver the software applications that corporations used neer in a new, on-demand model, he is in a position to know. to manage their businesses.”

In 1999, recently departed from a stellar 13-year career at From the start Benioff and Salesforce were able to offer cus- Oracle, Marc Benioff had a plan to create information utilities tomers something they couldn’t get anywhere else— that would make traditional enterprise software obsolete. “I on-demand, integrated, completely customizable enterprise was intrigued by how websites like Amazon.com revolution- applications. Reduced risks and costs were certainly part of ized the way consumers shopped,” he explains. “Consumer the appeal, but there was more to it than that, according to

38 E NTREPRENEUR OF THE YEAR 2007 Benioff. “It wasn’t just the staggering costs—millions of dol- customers, partners and employees. More than 35,000 com- lars—of the old enterprise system. The greater problem was panies worldwide now depend on Salesforce to manage their that the programs were so complex that users were only using sales, marketing, customer service and other critical busi- a fraction of what they were paying for. Worse, more than half ness functions. That success hasn’t escaped notice. Industry of the systems completely failed!” recognition includes Forbes’ Best of the Web in 2003, AMR Research’s 2005 Innovation Award, and BusinessWeek’s Top “Our idea was to offer a solution that was much less expen- 100 Innovators in 2006. sive. Subscribers paid a much smaller fee—$50 per user per month in the beginning. But another part of our appeal Along with his vision for on-demand enterprise software, was that we’d host it so there would be no mess with instal- Benioff is a leader in Silicon Valley’s philanthropic commu- lation for the customer,” Benioff says. “Some of the biggest nity. He’s written two books on corporate philanthropy and companies in the world use Salesforce—Cisco, Dell, Merrill created Salesforce.com’s innovative “1%” model for corporate Lynch—and those customers don’t care how cheap a solution giving. The company donates 1 percent of its equity to the is if it doesn’t meet their needs. The product has to be better non-profit Salesforce Foundation, 1 percent of all employee than anything else that’s out there.” work time—six paid days per person each year—to community service, and 1 percent of its product to non-profit It was. Salesforce.com quickly organizations. The philosophy is elegantly simple: a went from start-up to profitabil- commitment to be one with the earth. ity—from a standing start to $5.7 million in revenues in fiscal 2001. The following two fiscal years yielded revenue increases of 277 “Customers don’t care how cheap a percent and 142 percent, respec- tively. And the company is on track solution is if it doesn’t meet their needs. to become one of the top 25 software companies by revenue this year as sales approach The product has to be better than $1 billion. Salesforce.com, which went public in 2004, posted $497.1 million in revenue for its most recent fiscal anything else that’s out there.” year, ended January 31, 2007.

Building a “better than anything else” framework set the company up for its next big move. Earlier this year Salesforce “We started philanthropy at Salesforce the same day we rolled out Force.com, a platform upon which customers and started the business,” Benioff says. “We built it into the DNA others can build applications to manage other business func- of the company. It’s become a part of our culture, it’s impor- tions. tant to employees, it helps us attract new talent, it helps us work with partners and vendors, and it helps make a positive “It was not always part of the plan,” says Benioff, “but it was difference in the communities in which we operate.” one of our most pivotal decisions. Initially, we wanted to show that business applications could be easier to use, less And make no mistake; Salesforce and its employees are costly and less risky than traditional software. We had built making a world of difference. In six years they have donated this amazingly scalable, secure infrastructure that took a lot more than 46,000 volunteer hours and $10 million in grants in of time, money and years to perfect. At the same time, our 35 countries around the world. More than 2,200 non-profits customers and partners were asking for more—they had so globally use Salesforce to manage organizational needs rang- much success using the Salesforce applications, they wanted ing from managing constituent relationships to fundraising to build new applications to manage other business functions and volunteer opportunities. In 2003 Salesforce.com received that leveraged all of our infrastructure.” the Points of Light Foundation’s Award for Excellence in Corporate Community Service. The Force.com platform-as-a-service provides the building blocks necessary to build any kind of business app—simple “We cannot be successful if our community is not successful,” or sophisticated—and automatically deploy it as a service. Benioff asserts. “We all must do our part to ensure a sustain- More than 700 applications have been built on Force.com by able future.”

21 YEARS OF EXCELLENCE 39 Technology

Douglas Bergeron John S. Chen Chairman, CEO Chairman, CEO, President VeriFone, Inc. Sybase, Inc. San Jose, Calif. Dublin, Calif. Founded: 1981 Founded: 1984

FINALIST: Doug FINALIST: When John Chen joined Bergeron was Sybase in 1997, the company was not the president profitable and was losing ground to of private much larger competitors. Chen’s first equity firm move was to refocus the company on its Gores Technology existing database business by streamlin- Group when the ing business processes and focusing on company took improving customer service. The result- electronic paying profitability enabled Sybase to fund ment company new markets, and Chen found the per- Lawrence Ng FINALIST: At VeriFone pri- fect growth opportunity in the increasing CEO, Founder the tender vate in 2001 in an acquisition from need by enterprises to move data and Oversee.net age of 21, Hewlett-Packard. Much like other pri- information to their mobile devices. Los Angeles, Calif. Lawrence Ng vate equity deals, the original intention Founded: 2000 Sybase’s mobile business has grown by and partner was to find a qualified CEO and move Fred Hsu on, but Mr. Right didn’t materialize. double digit percentages in each of the last five years, making the company the founded Oversee.net with their own Ultimately, Bergeron bought out his leader in mobile enterprise software. savings and a belief in the business partner’s interest in the company And in 2006 Chen extended Sybase’s viability of online advertising. The and took over as CEO. He made big leadership in mobility with the acqui- result is Oversee.net, a company that changes at the company, setting it on a sition of mobile messaging company helps drive traffic—and makes sure it’s path to profitability by leveraging the Mobile 365, now Sybase 365. the right traffic—to some of the big- technology infrastructure and stream- gest sites on the Internet. Under Chen’s leadership Sybase lining R&D. Bergeron also focused When it comes to search optimiza- on providing customers with innova- achieved record profitability in 2006 and its database business achieved 18 tion, Oversee.net is the go-to company tive products, and in 2003 VeriFone for many of the largest players in the introduced products that leveraged IP percent license growth, outpacing major competitors. Revenues for the year were mortgage, travel, real estate, and edu- connectivity for retailers, dramatically cation industries. Ng developed tech- improving credit card authorization up nearly $60 million over 2005, with more than two-thirds nology that not only removes inherent times and increasing capabilities inefficiencies in online transactions, for third-party applications. of that in EBITDA, which jumped from $223 million to it enables interactivity and delivers In 2005 Bergeron led VeriFone $263 million. Sybase advanced tracking and performance, back to public status in one of is approaching $1 allowing Oversee.net to compete with the year’s most successful billion in revenue industry giants. IPOs. Fueled by organic for 2007 and Ng subscribes to a fiscal discipline growth and strategic its customers that has made Oversee.net profitable acquisitions VeriFone is include 80 of from day one and a philosophy of self- now a leader in the field the Fortune funding the company’s rapid growth, of electronic payment 100 com- including both organic growth and with a market cap that panies. the acquisition of 40 domains and two exceeds $3 billion. marketing services. Sales have qua- drupled since 2004, with nearly double annual profit during the same period.

40 E NTREPRENEUR OF THE YEAR 2007 Don’t Miss the Second Annual Ernst & Young Strategic Growth Forum

If you thought the 2007 Ernst & Young Strategic Growth Forum was great; next year’s Forum promises to be even better. This exclusive event, held in Palm Springs from November 10—16, 2008, is the country’s most prestigious annual gathering of high-growth, market-leading companies. The Forum enables companies to capitalize on emerging market trends, establish new partnerships and relationships, learn from the most advanced thinkers in business, and celebrate their success. Forum events will include: The Ernst & Young Entrepreneur Of The Year awards—the largest gathering of entrepreneurs in America. Since 1986, these awards have been celebrating, recognizing and honoring the men and women who start and grow market-leading companies. It has become the world’s most prestigious business award. Previous national winners include: à 2006: Richard Caruso, Integra LifeSciences Corporation à 2005: Arthur Blank, Atlanta Falcons, Home Depot, Georgia Force à 2004: H. Wayne Huizenga, Huizenga Holdings à 2003: John Mackey, Whole Foods Market, Inc. à 2002: Jeno Paulucci, Luigino’s, Inc. The IPO Transformation~CEO Retreat—2008 marks the 12th year for this Ernst & Young event that guides CEOs of growing companies as they plan for a public offering or other strategic transaction. Subsequent to attending the IPO Transformation~ CEO Retreat: à Blue Nile raised $77 million à Corel raised $104 million à iRobot raised $103 million à Crystal Decisions sold to Business Objects for $800 million à NYSE raised $1.5 billion à Shopzilla sold to Scripps for $570 million The Ernst & Young Symposium—an annual event for CEOs on a hot-button issue, such as cleantech (the 2007 Symposium topic). The event includes Ernst & Young professionals as well as strategy and corporate development officers of large companies, investors from venture capital and private equity funds, and government leaders. Ernst & Young has long been committed to serving entrepreneurs and high-growth companies. We are the undisputed leader in serving the Russell 3000, IPO-bound companies and companies listed on Forbes Largest Private Companies. To find out more about our Strategic Growth Markets practice and the 2008 Strategic Growth Forum, please visit www.ey.com/us/strategicgrowth.

Audit • Tax • Transaction Advisory Services

21 YEARS OF EXCELLENCE 41 W orld Entrepreneur Of The Year Guy Laliberté Founder, CEO Cirque du Soleil Canada Founded: 1984

uy Laliberté, founder and CEO of Canada’s Cirque du GSoleil, was named the 2007 Ernst & Young World Entrepreneur Of The Year on June 2 in Monte Carlo. Cirque du Soleil has revolutionized the idea of what a circus can be. It has toured more than 100 cities and has permanent shows in purpose-built the- aters in Florida and Las Vegas as well as one soon opening in Macau, China. The company has enjoyed double-digit growth for more than five years.

Laliberté was chosen from among 44 entrepreneurs representing 39 companies for the prestigious award, each of whom had been named Entrepreneur Of The Year in their home countries in 2006. Members of the eight-member independent judging panel are themselves well-known entrepreneurs. “Guy has changed the face of entertainment and had a huge global impact,” says the chairman of the judging panel, Joseph Schoendorf, executive partner of venture capital firm Accel Partners. “The shows that Cirque du Soleil creates Already a multitalented artist, Guy Laliberté quickly dove and performs have brought joy to millions. All of this year’s into the business world to plan and maintain the growth of the entrepreneurs were exceptional, but Guy’s commitment to his young company. Despite the group’s lack of experience, he artistic vision and the passion he has for his work were what managed to convince financial institutions to back the project, swayed the judges in his favor.” winning them over with the originality and audacity of youth. In the mid-1970s, at the age of 18, Laliberté set off from his He also developed a network of partners around the world to native Québec to travel around Europe, supporting himself help Cirque du Soleil make a name for itself abroad. for four years as a street performer—playing accordion, jug- Guy Laliberté was the first to orchestrate the marriage of cul- gling, stilt walking and breathing fire to earn a living. When tures and artistic and acrobatic disciplines that is the hallmark he returned home in 1979 he remained a street performer. of Cirque du Soleil. Since 1984, he has guided the creative In 1984, the province of Québec was celebrating the 450th team through the creation of every show and contributed to anniversary of Canada’s discovery and looking for innova- elevating the circus arts to the level of the great artistic tive shows to mark the occasion. Laliberté proposed the first disciplines. Cirque du Soleil show and the company was born.

42 E NTREPRENEUR OF THE YEAR 2007

Cirque du Soleil has brought wonder and delight to nearly 70 million spectators in over 100 cities on four continents, 2006 Entrepreneur Of The Year presenting 15 shows simultaneously throughout the world in 2007. From the original show in 1984 that employed 73 Country Winners people, the Montreal-based company now has more than Australia— Mike Cannon-Brookes, Scott Farquhar; 3,500 employees, including nearly 900 performing artists. Atlassian Software Together the employees and artists represent more than 40 Austria—Martin Essl, bauMax AG nationalities and speak 25 different languages. Belgium—Bart Van Coppenolle, Metris “Guy has taken a great entrepreneurial journey from street Brazil—Arri Coser, Fogo de Chão Churrascaria performer to CEO of a globally recognized brand,” says Greg Canada—Guy Laliberté, Cirque du Soleil Ericksen, Ernst & Young’s Global Vice Chair for Strategic China–Mainland—Jiang Nan Chun, Focus Media (China) Holding Ltd. Growth Markets. “Today he oversees every aspect of Cirque China– Hong Kong/Macau—Horst Julius Pudwill, Techtronic du Soleil, and his vision goes far beyond creating entertain- Industries Co. Ltd. ment. The company’s social action programs support at-risk Czech Republic—Pavel Juřiček, BRANO Group, a.s. youth around the globe, and Guy’s One Drop movement is Denmark—Jørgen Hallundbæk, Welltec A/S dedicated to providing clean drinking water to the world.” Finland—Raimo Sonninen, Bella-Veneet Oy France—Gilles Martin, Eurofins Scientific “Entrepreneurs sometimes talk about the luck they’ve had in Germany— Günther Cramer, Reiner Wettlaufer, Peter Drews, their careers,” said Ernst & Young Chairman and CEO James Pierre-Pascal Urbon; SMA Technologie AG Turley, in announcing the award, “but what we’ve seen over Greece—Lavrentios Lavrentiadis, Lavrentiadis Group of Companies 21 years of the Entrepreneur Of The Year program is that luck Hungary—Gábor Bojár, Graphisoft SE contributes little to these leaders’ successes. Passion, vision, India—Tulsi Tanti, Suzlon Energy Limited innovation—and a lot of hard work—are what make these Indonesia—Jacobus Busono, Pura Group entrepreneurs and their companies exceptional. Guy demon- Ireland—Anne Heraty, Cpl Resources plc strates these traits in abundance.” Italy—Roberto Tunioli, Datalogic S.p.A Japan—Kiyoyuki Suzuki, Advanced Media, Inc. Since it was founded in 1986 by Ernst & Young in the United Luxembourg—Abbas Rafii, Ireco Trading and Production S.A. States to recognize entrepreneurs who had created and sus- Malaysia—Tony Fernandes, AirAsia Berhad tained successful, growing business ventures, the Ernst & Netherlands—Pieter Zwart, Coolblue Young Entrepreneur Of The Year program has grown through- New Zealand—Richard Taylor, Weta Workshop & Digital out the world, expanding to over 135 cities in more than 50 Norway—Ståle Kyllingstad, IKM Gruppen AS countries on six continents. New programs in 2007 and 2008 Philippines—Senen Bacani, La Frutera, Inc. include Chile, Kazakhstan, Korea, Mexico, Mozambique, Poland—Maciej Duda, DUDA Meat Corporation the Middle East, and Slovenia. Recognized globally, the Portugal—Belmiro de Azevedo, SONAE Group Entrepreneur Of The Year award provides a unique way of Russia—Rostislav Ordovsky-Tanayevsky Blanco, Rosinter encouraging entrepreneurial activity and recognizing the con- Restaurants Holding tribution of outstanding men and women who inspire others Singapore—David Teo, Super Coffeemix Manufacturing Ltd. with their vision, leadership and achievement. Slovak Republic—Miroslav Trnka, ESET, spol. s.r.o. The 2008 World Entrepreneur Of The Year Awards will South Africa—Koos Bekker, Naspers Ltd. be held May 29 to June 1 in Monte Carlo. Previous World Spain—Eugenio Sánchez-Ramade Moreno, Javier Sánchez-Ramade Entrepreneur Of The Year winners include Bill Lynch, Moreno; Grupo Sánchez-Ramade Imperial Holdings, South Africa, 2006; Wayne Huizenga, Sweden—Thomas Klier, MPT AB Huizenga Holdings, United States, 2005; Tony Tan Caktiong, Switzerland—Domenic Steiner, Thermoplan AG Jollibee Foods Corporation, Philippines, 2004; N.R. Narayana Taiwan—Teng-Hsiung Chao, Farglory Land Development Co., Ltd. Murthy, Infosys Technologies Limited, India, 2003; Stefan Turkey—Ersin Akarlilar, Mavi Jeans Vilsmeier, BrainLAB AG, Germany, 2002; and Paolo della Ukraine—Mikhail Levchenko, Millennium Capital Porta, Saes Getter S.p.A, Italy, 2001. United Kingdom—J. Timothy Richards, Vue Entertainment United States—Richard E. Caruso, Integra LifeSciences Corporation

21 YEARS OF EXCELLENCE 43 Great minds think global. It’s like flying a bike. Big ideas know no boundaries. During Global Entrepreneurship Week, November 17-23, 2008, dozensGreat of minds countries think will global. come together for the ﬁ rst time to inspire millions of young minds to embrace innovation, imagination, andIn the creativity.Big world ideas Made ofknow innovation, possible no boundaries. by the anything Ewing During Marion Globalis possible. EntrepreneurshipKauffman Just Foundation ask Week, the and ® thenational UnitedNovember finalists Kingdom’s 17-23, of 2008, theMake dozensErnst Your of& Mark Youngcountries campaign, Entrepreneur will come Global together Of Entrepreneurship Thefor theYear ﬁ rst time to inspire millions of young minds to embrace innovation, imagination, Weekaward. will The help Kauffman tomorrow’s Foundation leaders begin congratulates to acquire these the knowledge, forward- skills, and creativity. Made possible by the Ewing Marion Kauffman Foundation and networks,thinking innovatorsand values neededfor their to successgrow innovative, in creating sustainable new businesses, enterprises. It’s the United Kingdom’s Make Your Mark campaign, Global Entrepreneurship angrowing experienceWeek the will jobdestined help market, tomorrow’s to leave and leaders agenerating positive begin impact to acquirewealth. on the their As knowledge, the lives leading and skills, the lives offoundation thosenetworks, around of andentrepreneurship, them. values needed to grow it is innovative, our goal sustainable to inspire enterprises. a mindset It’s that tapsan experience the endless destined ideas, to leave energy, a positive and impact enthusiasm on their lives of andamazing the lives of those around them. Inspire.minds for Connect. the betterment Inform. Mentor. of society, Engage. and in Visit turn, unleashingideas.org the entire world. to discover what you can do to help launch the world’s next generation of ThanksInspire. to them, Connect. the Inform.future Mentor.is taking Engage. flight. Visit unleashingideas.org to entrepreneursdiscover what – during you can Global do to Entrepreneurship help launch the world’s Week. next generation of entrepreneurs – during Global Entrepreneurship Week.

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