FOSTER
MICHAEL G. FOSTER SCHOOL OF BUSINESS UNIVERSITY OF WASHINGTON FALL 2013
MASTER STROKE The legendary 1958 Husky crew—powered by four Foster grads— beat the world-champion Soviets in Moscow Page 10
ALSO: New Name, Same Great Center Page 14 Are You Experienced? Page 19 Exemplary Accelerator Page 21 NAME: Sora Mizutani DOB: August 4, 2013
Does this look like a UW MBA fellowship recipient?
No, Sora hasn’t been awarded a scholarship (at least not yet), but her father, Ryota Mizutani (MBA 2010) benefitted from the Dick and Nora Hinton MBA Fellowship that aided his studies and positioned him for a leadership role with SoftBank Corp in Japan. Today, Ryota is a Foster School ambassador promoting our school overseas, and little Sora is enjoying a better start because of the difference made by the Hintons’ generosity.
Whether you, too, would like to build a UW bridge to Tokyo or Tacoma, your scholarship support doesn’t just impact your student. It can make a profound difference in families’ lives for generations to come. For more information on how you can help, contact Foster School Advancement at 206.543.0305. CONTENTS
On the cover
10 Master Stroke The legendary 1958 Husky crew—powered by four Foster grads— beat the world-champion Soviets in Moscow
14 New Name, Same Great Center A new name for the Business and Economic Development Center only begins to showcase all the center does
19 Are You Experienced? The MBA Strategic Consulting Program equips Foster students to apply classroom theories to real-world problems
21 Exemplary Accelerator The Buerk Center’s pioneering Jones + Foster Accelerator Program is helping turn entrepreneurial student teams into successful start-up teams
FALL 2013 1 CONTENTS
Dean James Jiambalvo
Associate Dean of Advancement 26 Steven Hatting
Managing Director Marketing & Communications Eric Nobis
Managing Editor Renate Kroll
Contributing Writers Ed Kromer, Andrew Krueger, Sarah Massey, 8 30 Eric Nobis, L.A. Smith
Photography Matt Hagen (principal), Paul Gibson
Departments Design a.k.a. design
Foster School of Business 4 In the News Marketing & Communications University of Washington Racing to the Top, Day of Innovation, Business Leadership Box 353200 Celebration, Pure Blue, Sustainable Dynasty, Clean Technology, Seattle, WA 98195-3200 Can’t Beat Experience, Feet in Doors, Summer Fun, 206.543.5102 Partners in Development, Success in the East On the Web foster.washington.edu 23 Faculty Great (Entrepreneurship) Reads, Seven Scholars, Fast Start, Foster Business is published twice a year by Research Briefs, Teaching Excellence, Mercurial Marketer the University of Washington Foster School of Business. The publication is made possible by donations from alumni and friends. No state 29 Alumni funds are used in its production. Barry Shulman, Thao Hong, Michael Egeck, Jerry Heinlen Change of Address? [email protected]
Comments? [email protected]
Think differently. Make a difference.
2 FOSTER BUSINESS Fostering Futures
After 36 wonderful years on the UW faculty, including eight as dean of the Foster School, I’m still learning something new every day. Now, we’re all familiar with the adage that “you can’t teach an old dog new tricks.” Well, I believe this maxim! Thus, my conclusion is that this particular Dawg must not be old! Kidding (and logical fallacy) aside, it would be difficult to feel old with all the enthu- siasm for learning and discovery taking place in Dempsey and PACCAR Halls! Not to mention all the learning that happens outside of the classroom, with multiple opportunities for students to consult with local and national companies (see pages 14-20), serve on non-profit boards (pg 15) and grow their own companies (pg 21). Seeing our BAs and MBAs grow into smart, ambitious and principled leaders continues to inspire me. Our faculty and staff also continue to grow and excel, as you will see throughout the pages that follow. And even though I’m a long-time accounting professor, I’ve embraced (if not mastered) the concepts of brand development and management. With our naming for Michael G. Foster in 2007, we went through a variety of brand exercises that helped us define our vision and path to success. Excellence across disciplines continues to be essential, but we have also built distinct capabilities in leadership, strategic thinking and entrepreneurship. Today, with quality teaching, research, services and facilities, these differentiators have helped us rank among the top 10 public business schools in the US. Still, sharing our success stories is as important as the people and programs that produce them. Effective communication is critical to truly define and differentiate ourselves among the leading business schools. This is where our 55,000 alumni around the world can aid their alma mater. I hope you will read, remember and share the stories here. Visit our website and attend a Foster School event. Speak with a student group to both impart your experience and wisdom and also to experience for yourself how our students and school have grown. Likewise, I ask you to find the time to leverage one of our most valuable assets— our network of alumni and business partners. Thursday, November 7th, brings the 22nd Annual Business Leadership Celebration. Each year we hear from hundreds of attendees about the inspiration they experience or the connections they make or reestablish at this terrific event. In terms of stories to share, a magazine or website can’t compare to hearing from those Huskies who have reached the pinnacle of their professions. This year we will hear from and recognize four amazing UW business leaders, and we’ll feature a keynote from a Washington native who reached the top of the banking world. (Please see page 5 for more information.) I hope to see you there and toast past successes and a bright future.
Sincerely,
James Jiambalvo Dean, Michael G. Foster School of Business Kirby L. Cramer Chair in Business Administration
FALL 2013 3 IN THE NEWS Racing to the Top
The Foster School expands relationship with Bill & Melinda Gates Foundation to advance US education projects
Christie Youde (BA 2006, MBA 2013) is a proud product of the Washington state public education system—from K to MBA. While working toward her latest degree at the Foster School, she seized an unexpected chance to strengthen that system. Youde and classmate Haid Garrett (MBA 2013) piloted the Foster School’s new education research project with the Bill & Melinda Gates Foundation this year. Working under the guidance of Mark Hillier, an associate professor of quantita- tive methods, they contributed two vital research projects to the Gates Foundation’s education programs. In the first project, they developed a financial model for prospective charter
school operators in the state, which became Associate professor Mark Hillier (center) and MBAs Christie Youde (left) and Haid Garrett piloted the new education the 42nd to support independent public research project with the Bill & Melinda Gates Foundation. schools with the passage of Initiative 1240 last November. In the second, they fore- Today the Foster School, the Department well received. My colleagues said this was casted the exploding market for Massively of Global Health, the College of Education the best money they’ve ever spent.” Open Online Courses (MOOCs) in the and the Evans School are engaged in proj- Word of a proven resource at the UW higher education space. ects that touch several areas of the Gates led the number of global health projects to “This is the coolest thing we have done Foundation’s priority strategies in global grow, well, virally. Parker expects the same in the MBA Program,” says Youde. “To get health, development and education. in the education space. to work with such a dream organization, On the Foster side, nine MBA students “Considering how well the first two such a giant in this space, and to do such worked with six faculty members to tackle a education projects went,” he says, “I expect relevant work that’s getting used… it’s variety of projects this year. word will get around quickly.” incredibly rewarding.” “It’s amazing to have the assets of the Youde and Garrett speak of the experi- University of Washington a few miles from ence with the Gates Foundation as life Expanding the relationship the Foundation,” commented Martha Choe, changing. The Foster School’s relationship with the chief administrative officer of the Gates “Learning spreadsheet modeling and Gates Foundation began in fall of 2011 Foundation. “And it’s been so exciting to thinking through problems and how to with Saara Romu (MBA 2007), then a see how we’ve taken advantage of the present to a client are skills that are really portfolio manager in the Foundation’s terrific support—from the students, the applicable to what we both will be doing Global Health group. Romu connected her professors, the leaders.” post MBA,” says Garrett. “It’s a huge value Global Health colleagues with faculty and Win win to be able to hone those skills on some- graduate students at the Foster School and David Parker, the senior program officer thing real, with implications.” the Department of Global Health to provide for College Ready Education at the Gates Youde will continue in that vein. In subject-matter expertise on a broad range Foundation and coordinator of UW-bound September, she joined the Foundation as a of projects. education projects, offered high praise to the financial associate supporting the College Word got around. Early this year, Foster team: “Christie and Haid absolutely Ready team. demand at the Foundation expanded the knocked it out of the park. They got up to “To be a part of this high level of Foster Research Group to take on educa- speed quickly, asked the right questions and relevant work,” she says, “is incredibly tion-based projects. delivered final products that were extremely motivating.” n
4 FOSTER BUSINESS DAY OF INNOVATION JOIN US FOR THE Foster School conference explores the entrepreneurial powers of 22nd ANNUAL disruption, empathy and weak ties BUSINESS LEADERSHIP The Day of Innovation and Entrepreneurship, which took place in April, offered an CELEBRATION impressive array of speakers. The conference was led by Ken Denman, president and CEO of Machine Perception Technologies. He also held the Edward V. Fritzky Chair in Leadership at the Foster School for the 2012-13 academic year. The concept for the event was “Silicon Valley meets Seattle” in an all-day conference hosted at the Foster School. Highlights included the morning keynote by Charles Songhurst, Microsoft’s general manager of corporate strategy. One of the points he made was that diplomacy is virtually unknown in the tech industry. Songhurst recommended that practicing empathy, predicting how others will act and react, and adapting to cultural norms of your target will put you at a significant advantage in the technology space. Zaw Thet, co-founder and chairman of plyfe.me and HaulerDeals, provided advice about how to diversify your team, and referenced the paper, “The Strength of Weak Ties” by Mark S. Granovetter. Thet’s point was that in hiring employees, you should look for people who can find diversity outside of their current network via a weak tie to another group. The motivation for this is to expand your network and therefore, diversify your staff. Featured Leadership Address: Seth Neiman of Crosspoint Venture Partners provided insight on the difference between innovation and disruption. He referred to innovation as “something that is of Richard Kovacevich Chairman emeritus of such significant value that people will change how they buy,” adding that people won’t Wells Fargo & Co. change their behavior if there’s not an incentive. “Innovation turns into a business when the time pressure means a big company will get there too slowly, regardless of how intelligent they are,” he continued. Disruption, according to Neiman, occurs when Distinguished Leadership innovation is so powerful that it catches all the big companies off guard. Award Recipients: Ben Casnocha, co-author of “The Start-Up of You,” brought the day to a close with David Bonderman (BA 1963) the idea of applying entrepreneurial business thinking to your life. His suggestions of Tom Crowley (BA 1989) how to approach your personal development as you would a business included setting Dan Fulton (MBA 1976) aside time to read and think, increasing your knowledge every day and earmarking Builder of Our Future funds for meeting with interesting people. n Kate Kingen (BA 2009)
Thursday, November 7 5:45-9:30 Seattle Sheraton Hotel
Register online at foster.washington.edu/ leadershipcelebration
For corporate sponsorship inquiries, please contact Sara Jack at [email protected] or 206.221.6725.
Ken Denman (left) moderates a panel with Tim Porter (Madrona Venture Group), Jason Stoffer (Maveron) and Seth Neiman (Crosspoint Venture Partners).
FALL 2013 5 IN THE NEWS
PURE, BLUE SUSTAINABLE DYNASTY Novel water treatment technology wins UW Business Plan Competition Foster MBAs win second Net Impact Case Competition in three years
The national Leeds Net Impact Case Competition is built around businesses facing sustainability challenges, and the Foster MBA team came up with a winning solution. Team members Gabe Jones (MBA 2014), Ryan Scott (MBA 2013) and Chris Walker (MBA 2014) reported on the school’s most recent victory this past February at the University of Colorado. The case challenged student teams to navigate Newmont Mining’s efforts to begin mining gold in a fictional African nation. The Foster team’s solution was centered on the creation of a Trusted Partners Program—a kind of independent escrow account managed by Newmont executives, stakeholders from local and national Michael Bauer (left) from the Herbert B. Jones Foundation and the Pure Blue Technologies team government, and NGO partners—that Ninety-one teams entered this year’s annual UW Business Plan Competition, which is would manage profit sharing to benefit organized by the Buerk Center for Entrepreneurship at the Foster School. Judges iden- both company shareholders and local tified several trends in this year’s competition, including a major focus on consumer residents. products and service/retail businesses. There also were a number of ideas for targeted The plan was simple, feasible and social networks, environmental innovation and solutions to world health problems. implementable. Said Scott: “The ques- The winner of the $25,000 grand prize was Pure Blue Technologies. They have devel- tion we kept asking ourselves was, oped a contaminated water treatment system that uses visible light photo disinfection ‘What will the board do next week? technology to produce disinfected water for beneficial reuse. Pure Blue Technologies also After we finish our presentation, can won second place at this year’s UW Environmental Innovation Challenge, also organized the board actually act on this?’ I think by the Buerk Center. The team comprised Jaffer Alali (MS Environmental Engineering), that’s what earned us the win.” Adam Greenberg (BA Finance and Entrepreneurship), Michael Lee (MS Mechanical Foster students also won the Engineering), Alan Luo (PhD Physics), Sep Makhous (PhD Electrical Engineering), national Net Impact Case Competi- Ryan Vogel (BA Finance and Entrepreneurship), Ian Tan (BA Finance), and Nicholas Wang tion in 2011, and reached the finals in (BA Chemical Engineering). 2012. n The second place winner was Z Girls. They have created a sports-based curriculum that gives girls ages 11-14 the opportunity to develop skills like goal-setting, positive self- image, and healthy nutrition habits through team programs and summer camps. Final Round Judge Steve Singh, CEO of Concur, remarked, “Z Girls is an inspiring business led by some amazing founders that could be doing anything in life. Incredible.” Team members include Libby Ludlow (JD and Technology Entrepreneurship Certificate), Jacob Dudek and Jilyne Higgins. n
The winning team celebrates in Colorado.
6 FOSTER BUSINESS Clean Technology
Environmental Innovation Challenge awards $22,500 to eco-entrepreneurs
In April, 20 student teams from colleges and universities throughout the Pacific Northwest pitched their innovations at the UW Environmental Innovation Chal- lenge. Now in its fifth year, the UW EIC, which is organized by the Foster School’s Buerk Center for Entrepreneurship, chal- lenges students to develop prototypes that solve current environmental issues. Teams address energy, urban agriculture, recycling, built environment and water-related problems with novel solutions that have market potential. The winner of the $10,000 grand prize was PolyDrop, which manufactures addi- tives that transform regular coatings (think paint) into conductive coatings that open up a world of opportunity for carbon fiber composites in transportation industries. a vehicle’s sensitive electronics. PolyDrop safer, smaller, and more cost-effective than The transportation industry is looking to solves this problem by providing a means existing solutions. Pure Blue Technologies move toward using light-weight carbon to dissipate static electricity with a viable also went on to win the UW Business Plan fiber materials to reduce fuel consumption conductive technology. Competition. n and decrease carbon dioxide emissions. The second place prize went to Pure However, carbon fiber composites accumu- Blue Technologies, which has developed a late a static charge that will interfere with unique water disinfection technology that is
Can’t Beat Experience
Foster undergrads win national sales case competition
Foster undergraduate students Hayden Krall, Hannah Hanson, Hanna Klemm and Megan Smith bested teams from 20 top business schools to win the “Can’t Beat the Experience” National Team Selling Competition at Indiana University last year. The case involved an internal sale within a large company. Teams were charged with creating a workplace wellness program that would introduce a new fitness device: the GetFit wristband. The competing students—acting as “special task teams”—presented their plans to the firm’s CEO and vice president of human resources. The competition day was split into two presentations: a morning session for needs analysis and an afternoon sales presentation. The Foster team’s wellness program proved to be most convincing. “Winning was surreal,” says Smith. “There are not words to describe the feeling of having many late nights and hours of practice pay off. It is impossible for us to give enough credit to our coaches for their unparalleled support and guidance.” n
FALL 2013 7 IN THE NEWS Feet in Doors
EY Center has quickly become an essential new resource for students entering the job market
Consider the EY Center for Undergraduate in industries such as finance, consulting symposium, holding Excel modeling Career Advancement’s impact on students, and IT, and launched the Career Explora- workshops and partnering with the Foster by the numbers. tion Program for newly admitted Foster Consulting and Business Development Last academic year, the center presented students. The center also is connecting Center to offer a course on consulting. a job fair featuring 125+ hiring compa- students to career opportunities outside of Many jobs today require advanced analyt- nies, held 1,400 advising appointments, Seattle. In August, students traveled to San ical skills, and the center is focused on coordinated 330 interview sessions with Francisco to meet with six Bay Area firms helping students acquire skills that allow employers, and facilitated more than 1,700 and participate in a networking event with them to hit to the ground running in their job interviews for students. At press date, employers and Foster alumni. first job. the EY Center helped over 430 graduating According to Andy Rabitoy, director Rabitoy is enthusiastic about what seniors land a job with companies that of the EY Center, goals for the upcoming the center has accomplished in its first include Accenture, Chevron and Wells year include connecting with more alumni, year, and promises much more to come. Fargo. focusing on career opportunities for women “I can’t imagine not doing this,” he says. Remarkable figures, considering the and minorities, and increasing interview “We’re working with students at a defining center was launched only a year ago. preparations—especially for case interviews moment in their life. I feel excited and The EY Center has also introduced which ask students to solve a business proud when I see students get the job Industry Focus Nights, which give students problem during an interview. Additionally, they want.” n the opportunity to learn more about careers the center will be offering a marketing
Summer Fun
Foster annual alumni picnic enjoys perfect day, excellent company
It’s Saturday, July 13, and the hour is and wine garden set-up at Orin’s Place, the approaching noon. Not only is it not café just inside PACCAR Hall’s entrance off raining, it’s a spectacular day—one of Denny Yard. many that have marked Seattle’s “endless The picnic marked the mid-way point summer” of 2013. This is particularly good of the three days that make up the MBA news for the 300 alumni, faculty and staff Reunion Weekend, which celebrated who attended the fifth annual all-alumni the 1988, 1993, 1998, 2003 and 2008 PACCAR Hall Picnic. As last year’s attendees graduation classes (it rotates year-to-year). can attest, this is a big improvement The previous evening found alumni freely from seeing how quickly everything can spending their “Jiambalvo bucks” sampling be moved inside to escape a torrential beer, wine and spirits from eight different downpour. purveyors—all Foster start-ups. From Children (of all ages) raced through Bellevue Brewing to Sound Spirits, the party a “bouncy-house” style obstacle course, was locally sourced in the best way. Mercer Island watering hole to remain open donned silly regalia at the Foster photo Following the fun-in-the-sun portion of past normal business hours to keep their booth, hung out with UW mascot Dubs, the weekend, alumni gathered at locations party going. got their faces painted and ate from tables around the Puget Sound to revisit classic Join in the fun next summer. Watch your laden with food that says summer. The moments in MBA history. It’s rumored that mailbox, your inbox or our website for more 21-and-over set also had access to the beer one of the parties even convinced an iconic details. n
8 FOSTER BUSINESS PARTNERS IN DEVELOPMENT SUCCESS IN THE EAST The Foster School’s Consulting and Business Development Center collaborates with the National Minority Supplier Development Council to increase opportunities for minority-owned enterprises New lecture series focuses on doing business in Asia The National Minority Supplier Development Council, Inc. (NMSDC) and the Foster School’s Consulting and Business Development Center (formerly BEDC) have announced a partnership agreement to further the development of minority-owned businesses across the US. This agreement calls for collaboration on the development of executive education programs. Initially the collaboration will focus on Foster’s Minority Business Executive Program, a week-long residential program that has been drawing participants from across the US since its inception in 2008. In addition to providing input on the curriculum of the program, NMSDC will promote it at the national level, as well as sponsor some businesses’ attendance. As just one of three programs of its kind in the US (the others are at Tuck and Kellogg) the partnership will further extend the national impact of the Consulting and Business Development Center. The NMSDC, founded in 1972, connects minority-owned businesses of all sizes with corporations to increase procurement and business opportunities. “This agreement will Entrepreneur William Saito provide minority business enterprises a new opportunity at one of the country’s leading institutions that supports minority business development,” says NMSDC president Joset Want to learn more about doing busi- Wright-Lacy. “We are delighted with our new relationship, and we look forward to many ness in or with Asian countries? That’s years of success for NMSDC, for the University of Washington, but most importantly, for the theme of the Foster School’s new our certified minority business enterprises.” lecture series sponsored by the Atsuhiko Jim Jiambalvo, dean of the Foster School, expressed similar excitement about this & Ina Goodwin Tateuchi Foundation, partnership. “We recognize the NMSDC’s pioneering role in growing minority-owned kicked off last May with a talk by entre- firms across the US. The work of the council and its member corporations has done more preneur, venture capitalist and public to create opportunities for business growth and wealth creation in communities of color policy consultant William Saito, entitled than just about any organization in the last 40 years. We’re proud to be partnering with “Global Entrepreneurship: Rewards & them so that collectively we can do more than either of us could do independently.” n Challenges.” Saito shared his experi- ences starting a business in Japan and penetrating Japanese markets using American venture strategies. Having earned recognition in 1998 as Entrepre- neur of the Year from EY, NASDAQ, and USA Today, Saito now runs InTecur, a consultancy in Japan that helps companies identify and develop applications and markets for innovative technologies. This lecture was the first of four in a series hosted by the Foster School’s Global Business Center (GBC), and open to the public. The next in the series will occur in May of 2014. Check the GBC’s website at foster.washington.edu/gbc this spring for more information. n
Foster’s Consulting and Business Development Center director Michael Verchot with NMSDC president Joset Wright-Lacy and vice chairman of the board Shelley Stewart, Jr.
FALL 2013 9 MASTER STROKE
The Russians had a habit of jumping the start. INTRO TO ROWING Not that they needed any more advantage. This was the In fall of 1954, a promising group of strapping young freshmen vaunted Trud Club of Leningrad, the world champion men’s eight- turned up at the Husky Crew House to try their hand at this oared crew. A juggernaut on the water, intimidating to the man, ancient sport that had brought generations of glory to the UW. Trud held the edge in size, age and experience against almost any Among them were four business majors who would someday competition. And on this gusty July day in 1958, they would be be enshrined in the Husky Hall of Fame: Alm, Bisset, and Roger racing before a partisan Moscow crowd, against a team of college MacDonald (BA 1958) from Seattle’s Roosevelt High School, and kids from the University of Washington whom they had beaten Andy Hovland (BA 1958) from Ballard High. soundly at the Henley Royal Regatta two weeks prior. Their class would rarely ever lose, at any level, over the next But that jackrabbit start at Henley had raised the hackles of four years. their young challengers. “The whole boat was pissed about that,” But in 1957, the NCAA imposed sanctions on the Husky foot- recalls Chuck Alm (BA 1958), captain of the Husky eight. ball program for rules violations. A two-year ban on post-season Pissed, and ready. The start in international rowing is called out play extended to all varsity sports, including rowing. This meant in French: Êtes-vous prêt? Partez! the class of 1958 would have no chance to vie for a national title “We were prepared this time,” says coxswain John Bisset (BA at the IRA regatta their junior or senior years. 1958). “When the Russians shot out of the stake boats on Êtes, Legendary coach Al Ulbrickson pledged to his seniors that if we went too. The race was on.” they finished the regular season without defeat, they would enter It would be the race of their lives.
10 FOSTER BUSINESS The legendary 1958 Husky crew— powered by four Foster grads—beat the MASTER STROKE world-champion Soviets in Moscow
the prestigious Henley Royal Regatta in England, where the fastest Husky boosters stepped up their support. And hundreds of crews on the planet came to duel. students—recruited and deployed by Artie Buerk (BA 1958)— The Huskies did just that, sweeping meets against Cal and raised thousands of dollars by selling $1 “On To Henley” buttons Stanford, then besting a University of British Columbia crew on the streets of Seattle. stocked with Canadian Olympians. In July, the Huskies arrived at Henley to compete for the Grand “Henley,” says Alm, “was a tremendous reward for sticking it out Challenge Cup. In the first round of the match-racing format, they those two years without a chance to compete for a championship.” drew the formidable world champions from Leningrad. In torrential rain, the Soviets jumped to a quick lead on the Thames, and the ON TO HENLEY Huskies could not recover. Trud Club won by one and a quarter Henley also represented uncharted waters for the Huskies. And a boat lengths, then went on to claim the Cup without serious chal- trip of significant cost. lenge. But rowing, in those days, was a marquee sport in Seattle, Despite their gaping disadvantage in age, size and experience, drawing tens of thousands of fans to Lake Washington on race losing at Henley was a major disappointment for the Husky eight. days and dominating the local sports pages throughout the spring “We did not row to our capability,” Alm says. “And this Russian season. “Husky rowing wasn’t the only game in town,” recalls national crew really took it to us.” MacDonald. “But it was one of only a handful.” “They rowed a good race at Henley and we got beat,” agrees The wrongfully punished Husky rowers became a local cause Bisset. “What can you say?” celebre. “On To Henley” became a battle cry.
FALL 2013 11 The Huskies were accustomed to the three-mile distance of collegiate racing. But in Moscow, as at Henley, they would row the international sprint distance of 2,000 meters, a six-minute burst at full throttle that demanded more than a little urgency. Ulbrickson directed his men to shorten their stroke and ratchet up the cadence. Their confidence grew with each pull of the oar. “We trained for ten days on the reservoir with the Russians right next to us,” recalls Alm. “And we could just feel it coming back together. We knew we were going to perform better than at Henley, but it remained to be seen how much better.” One thing’s for sure: they all had their sites on redemption. Says MacDonald: “We all relished the opportunity to have another crack at those guys.”
THE REMATCH A SECOND CHANCE A young reporter named Keith Jackson—destined for several Unbeknownst to the oarsmen, the US State Department had sportscaster halls of fame—had convinced his bosses at Seattle’s brokered a potential cultural exchange that would send the varsity KOMO-TV that he should attend the race and broadcast it live on eight to Moscow for a rematch against Trud. “The consensus the radio. It would be the first such airing of an athletic event from among the guys was that if we had beaten the Russians at Henley, inside the Soviet Union. we would never have received an invitation,” Bisset says. “It was On race day, July 19, the Huskies were surprised to learn that clear that they wanted to beat us again in front of their home they would be competing against four Soviet crews. The Red Army, crowd.” Spartak Moscow and Dynamo Kiev joined the Trud Club at the Whatever the intent of their hosts, the Huskies accepted. They start. flew to Moscow, the first American athletes to compete behind the But the UW men were focused. “We weren’t thinking about Iron Curtain. political ramifications of the event, or who else lined up at the As they traveled the streets of the Russian capital, it became stake boats,” recalls Bisset. “This was between two crews. We clear that this was not just another race. Posters promoting the hadn’t lost a race in four years, practically. We knew we could do event did not tout “Washington vs. Trud Club,” but rather “USA vs. better. And that feeling coalesced. Right before the start, there USSR.” was a confidence throughout the boat that this was going to be a “It was the Cold War era. The Soviets and Americans were at whole different race.” odds, competing for superiority in technology, manufacturing, Following the hair-trigger Trud, the Huskies shot to the fastest weaponry and athletics,” says Alm. “That gave it a political signifi- start of their lives and steamed ahead at a furious clip. “I was later cance that we never contemplated, and added a surreal quality to told they had never been beaten off the line like that,” MacDonald the experience.” says. “I think that rattled them.” On the bus ride to train one day, the team drove by a massive At 1,000 meters, the Huskies had a boat length lead. At state-inspired protest at the American embassy in response to US 1,500 they were pulling away. As they crossed the line nearly two troops entering Lebanon to quell a communist uprising. lengths of open water ahead of Trud and the rest, Bisset jumped But the oarsmen received nothing less than VIP treatment up from his coxswain seat in euphoric celebration. in Moscow. They were fed Russian delicacies and bused to the “It was incredibly satisfying to win—and even more so to win Bolshoi Theater, Red Square, Moscow University and several so decisively,” Bisset says. “I think we proved our point.” museums. They even viewed the open tombs of Lenin and Stalin. “It was kind of a boys-against-men situation,” Alm adds. “But “I remember feeling a little embarrassed,” recalls MacDonald, we were too young, maybe, to realize that it wasn’t supposed to “because there was a line a half-a-mile long, and they took us turn out this way.” right to the front.” By all reports, the vanquished Russians were gracious in defeat. BACK TO BUSINESS “I was really impressed by their demeanor,” says MacDonald. But Ulbrickson, a no-nonsense coach known as “the Dour Dane,” “These guys were pros, and they didn’t expect to lose, much less soon got their minds on the business at hand. lose badly. It had to be a bitter blow for them, but they handled it He drilled them up and down the Khiminskoe Reservoir on a with class.” new strategy. Parting gifts were exchanged—the Huskies left their victorious Pocock shell Swiftsure behind as a gesture of goodwill to their hosts. And they returned home heroes. But local heroes only. ©KarenOrders.com
12 FOSTER BUSINESS THE HUSKY PANTHEON The 1958 Husky Crew competed around the midpoint of an amazing 105 years of rowing at the University of Washington. There have been extraordinary feats: victory over the Soviets in 1958, gold medals in the 1936 and 48 Olympics, a first Grand Challenge Cup victory at the Henley Royal Regatta in 1977. But the real story of Husky Crew is its sustained dominance decade after decade. The Washington men have brought home 21 national championships and 35 Pac-10 titles, and produced 66 Olympians. The Washington women have won 11 national champion- ships and 22 Pac-10 titles, and produced 24 Olympians. Washington’s Crew program is simply the best. And many Foster School oarsmen and women stand proudly in the pantheon of Husky greats.
LOCAL LEGENDS Hovland embarked on a long career at Boeing. MacDonald In those days before cable TV and the Internet could make continued to row locally and eventually settled into a long career even the most obscure athletic drama ubiquitous, the Huskies’ with Pacific Northwest Bell (later US West), then managed a historic—and politically charged—victory over the Soviet world printing business before retiring. Alm joined the Army and rowed champions went largely unnoticed outside of Seattle and its in the 1960 Rome Olympics, then served as director of the UW environs. Alumni Association in the 1960s before a long run as vice-pres- But the event made huge headlines at home. And left indelible ident of Olympic Stain. And Bisset went on to coach the Husky memories. freshmen before serving as head coach of UCLA’s nascent crew Keith Jackson, the legendary sportscaster, still considers the program, director of the UWAA (after Alm’s tenure), and finally Huskies’ comeback win over Leningrad Trud his greatest memory as president of a package travel company called Alumni Tours in in sports. George Meyer, the longtime sports editor of The Seattle Chicago. Times, counted it as his favorite moment in his final column. But wherever life has taken them, the men who stunned the At the 2010 Seattle Sports Star Awards, the Huskies’ upset Soviets say they’ve always felt a deep sense of satisfaction, of victory in Moscow was named the top story of the past 75 years, pride, of kinship born in shared endeavor. beating out the Sonics’ ’79 NBA championship and UW’s ’91 “In a way, it was a lucky break to lose that race at Henley,” NCAA football title. reflects Alm. “It gave us, without any equivocation, the greatest The 1958 varsity boat that beat the Soviets—John Bisset (cox), rowing experience of our lives to go in there and pull that off.” John Sayre (stroke), Andy Hovland (7), Louis Gellermann (6), Chuck The sport of rowing—when it’s good—provides richer awards Alm (5), Phil Kieburtz (4), Roger MacDonald (3), Dick Erickson (2), than medals or fame. and Bob Svendsen (bow)—has been enshrined in the Husky Hall Bisset recently read “The Boys in the Boat,”the acclaimed of Fame, along with their coach Al Ulbrickson, whose final race account of the equally legendary Husky crew that beat the was that moment in Moscow. Germans in front of Hitler at the 1936 Berlin Olympics. “That book really captures the essence of rowing, and what it POSTSCRIPT means to be with a group of brothers who go through hellfire to It also was the final collegiate race for the four seniors who gradu- achieve something great,” he says. “I could relate it very easily to ated that spring from what would become the Foster School of our group of guys. We’re just bonded together. When we see each Business. other, we just pick up where we left off as undergraduates, practi- cally. It’s a unique thing, and I feel very blessed.” n
FALL 2013 13 14 FOSTER BUSINESS NEW NAME, SAME GREAT CENTER
THE BEDC IS WHAT NOW? THE CHANGE IN NAME ONLY BEGINS TO SHOWCASE ALL THAT THE CONSULTING AND BUSINESS DEVELOPMENT CENTER DOES
BY ERIC NOBIS
The Business and Economic Development Center is now the The center is about applied learning and helping out small Consulting and Business Development Center. What? You didn’t businesses in need. This model is built on research conducted feel any seismic activity around that shift in word tectonics? over decades by the center’s faculty director, Dr. William Bradford, Given the role that student consulting plays in the center’s dean emeritus, professor of finance, and recent inductee into the impact on the community and in jumpstarting careers for young prestigious Minority Business Hall of Fame. (Read more about Dr. graduates, it’s actually a more meaningful name change than Bradford on page 17.) The research shows that successful small meets the eye. To understand why, you have to understand more businesses in underserved communities are a great incubator for about what the center does—and that’s really where the story jobs and wealth creation. Business owners hire from their commu- begins. nity, buy from their community and give back to their community. Since 1995, what began as the Business and Economic Devel- This over-simplification doesn’t do Bradford’s research justice, opment Program at Foster (and subsequently became the Business but his findings on economic development are groundbreaking. and Economic Development Center) has engaged students in So much so, that the center has been tasked—with the sponsor- learning experiences that strengthen the competitiveness of ship of the JPMorgan Chase Foundation—to replicate the model hundreds of businesses in lower-income communities as well as for business development at other universities—which includes those owned by minorities and women. This is where what our hosting the recent National Conference on Business Development faculty teaches translates into real-world experience for students in Underserved Communities (see page 18). who will help businesses in underserved communities grow and The roles of the Consulting and Business Development Center have long-term success. It’s a triple bottom-line proposition that are many. In addition to undergraduate consulting opportuni- has resulted in more than $90 million in new revenue generated ties, the center works with MBAs and Foster faculty, along and more than 10,000 jobs created and retained across Wash- with business owners across Washington. If you’re a graduate ington state. student, consulting opportunities come in the form of firsthand This spring quarter, I had an opportunity to stand at the front of experience learning the ins and outs of board governance. The a marketing analytics class that the student consultants take and Board Fellows Program places MBA candidates on the boards of guest lecture alongside a colleague. Interacting with such a bright non-profit organizations in the capacity of non-voting members. and motivated group was highly inspiring, and I was impressed by It’s a unique opportunity, founded on the trust level the center the rigorous curriculum—designed to transform undergraduate has with organizations across the state and the excellent reputa- business majors into junior-level consultants. Students getting tion of Foster business students. Over the last seven years, MBAs involved with the Consulting and Business Development Center are have also worked as consultants with tribes and tribal enterprises volunteering to traverse the mountain by way of its steepest face. in Washington, Oregon and Alaska through a targeted summer internship program.
FALL 2013 15 Another pillar of the center’s work is faculty-led business event held by the Foster School. See what I mean? The center has education courses for early-stage and experienced business reached deeply into the community to ensure that its mission does owners. The center’s Business Certificate Program advances the not remain ensconced on the wrong side of the ivory tower. There management skills of business owners and managers who typically is tremendous impact that stems from having a center director, in have companies with revenues of under $500,000. The program is Michael Verchot (MBA 1995), who is capable of connecting all of comprised of six sessions and is developed and taught by faculty these dots and growing the reach of the Consulting and Business from Foster. The certificate program provides an opportunity for Development Center year-over-year. participants to study proven business fundamentals, as well as the But there are also issues of succession, brand identity, ongoing chance to network with successful local business owners. To make vision and the need to clearly articulate the purpose of the center the program accessible, classes are offered in Seattle, Yakima, as the need for private funding becomes greater in the realm of Everett, Spokane and the Tri-Cities at different times throughout public education. So, fast-forward from the class I guest taught the year, with some of the offerings being taught in Spanish. this spring to this summer, and I’m moderating a Consulting There’s also a program aimed at helping minority business and Business Development Center advisory board meeting in owners reach their next growth milestone. Foster’s Executive which the name and tagline of the center are about to shift. The Education group and the Consulting and Business Development need for change is predicated on a couple things: 1) “economic Center, in partnership with Boeing, Microsoft and Zones, offers development” has become a dated term that conjures up ad hoc the Minority Business Executive Program, which strengthens the government programs from the 1970s more than it does the competitiveness of already experienced and successful entrepre- vibrant mission and programming of the center and 2) a brand neurs. Recently added to that partnership is an alliance with the research study on the center has been completed and it’s clear Northwest Minority Supplier Development Council, to increase the that the center’s “elevator pitch” will require the duration of number of minority businesses with access to the program. 80 floors or more. And don’t forget the annual recognition that comes in the form The various student consulting projects, consulting with peer of the UW Minority Business Awards, which is the largest annual schools on their business development centers, and a consultative approach to statewide and executive education programs put a premium on consulting as a key component in the way the center fulfills its mission. And “business development” does more to express the faculty-to-student-to-community knowledge transfer than does “economic development.” The path to better economics, as posited by the center’s research-based direction, is business growth in underserved communities. And as an economic index of small businesses in Washington state (performed by the center) has shown, there is a tremendous business engine at work when you aggregate the revenues and job creation associated with small businesses across Washington, many of which are women or minority-owned. Welcome to the Consulting and Business Development Center, and its renewed focus on engaging students in real-world consulting projects that enables them to jumpstart their careers and grow businesses in underserved communities. n
As managing director of marketing for the Foster School, Eric Nobis works with the Consulting and Business Development Center on branding and marketing strategy.
16 FOSTER BUSINESS Catalytic conversion Bradford grew up in Cleveland, eventually choosing the academic life over the family business of ministry (his grandfather and father led Baptist congregations, as do two of his brothers). He earned a BA from Howard University and an MBA and PhD from Ohio State in 1972. Prior to joining the Foster School, he was on the faculties of NYU, Stanford, and the University of Maryland Smith School of Management, where he also served as chair of the finance department and associate dean of academic affairs. Bradford became the first African-American dean of the Foster School in 1994. By the time of his Foster appointment, Bradford’s prolific research had already established him as one of the foremost experts on minority wealth creation and management, entre- preneurship and economic development in the context of minority-owned businesses. When Verchot and Spratlan pitched a program that would leverage his (and others’) academic work by deploying student teams to accelerate the growth of small minority-owned busi- HALL OF FAME nesses, Bradford was more than intrigued. “My thought was that we are a public university,” he says. “So PERFORMANCE we needed to contribute not only to the Boeings and Microsofts, but also to small firms, and those firms in less economically developed Dean Emeritus William Bradford, seminal areas. I didn’t know if the program was going to work, but there supporter of minority business development, was a demand, and it was a way to connect with the community.” Verchot recalls finding more than just a champion in Bradford. takes a bow “What was exciting about Bill being appointed dean was that he brought with him 25 years of research and publishing on minority business development,” says Verchot. “He became a catalyst— someone who not only understood and supported what we were trying to do, but who had actually done some of the seminal work Bill Bradford is not exactly a founding father of the Foster School’s that we could refer to.” Consulting and Business Development Center. But he could be Living legacy called a funding father. A catalyst. And an author of the center’s When he stepped down as dean in 1999, Bradford was named the inspiration. Endowed Professor of Business and Economic Development at the Bradford was the Foster School dean who green-lighted Foster School, an honor financed by a group of anonymous donors. the vision of Michael Verchot and Emeritus Professor Thaddeus That same year, what is now the Consulting and Business Develop- Spratlan, and who provided the seed money to launch their plan ment Center instituted the William Bradford Minority Business of to spur minority business development in the mid-1990s. the Year Award, the premier honor for minority-owned businesses More significantly, perhaps, Bradford generated many of the in the state of Washington, based on revenue size, management groundbreaking studies of minority enterprise that provided the quality and commitment to community. empirical foundation for the center’s aspirations. Today Bradford continues to publish actively, shaping public “Early on I got the idea that if the US is going to maintain its policy and private sector practice. His current research investigates economic status in the world, then it’s going to have to use all of venture capital investment in minority-owned firms. He’s finding its resources as best as possible,” says Bradford. “And if there is a that such firms earn investors a higher average rate of return set of people who are not systematically reaching their potential, compared to the general population of venture-funded firms. then all of us stand to lose.” And he continues to serve on the board of a flourishing For a career of major contributions to economic development Consulting and Business Development Center, and as its faculty among minority populations, Bradford was inducted this year to director. the Minority Business Hall of Fame—only the third academic to “When we began, Bill’s knowledge stretched us to think bigger receive this honor. and further than we might have otherwise,” reflects Verchot. “Had he not been dean when we were just getting started, it’s hard to imagine the center even existing today.” n
FALL 2013 17 Conference attendees pose for a photo in PACCAR Hall.
The summit drew influential academics and administrators from more than 20 business schools, as well as regulators and repre- sentatives of financial institutions and community organizations. It was the first national meeting of its kind. “Given the changing demographics of our nation and the growing multicultural population, this was a fitting topic to be addressed in a conference setting,” says Jerome Williams, interim director of the Center for Urban Entrepreneurship and Economic Development at Rutgers University, launched in 2008. “It was a great opportunity for people working in this area to come together and learn from one another and set an agenda to move forward collectively and collaboratively.” Among the topics discussed: understanding minority entrepre- neurship, scaling small businesses, improving curriculum, research, and funding. Bill Bradford, the UW center’s faculty director, opened the conference with a review of more than 200 academic publica- tions on minority-business development, and issues faced by small businesses in lower-income communities. Center director Michael Verchot explains that the intent of the conference was to catalyze a nationwide network of kindred centers, programs and people dedicated to a shared goal. The conference followed by six months the publication of the Foster- produced “Multicultural Marketing and Business Consulting,” the first textbook for business school classes that engage students in small-business consulting projects. “We commend the Foster School of Business in their efforts to move the field forward and provide the opportunity to contribute to the revitalization of the most deserving underserved communi- ACCELERATING ties—through technical assistance, revenue and job creation,” says Phyllis Campbell (MBA 1987), chair of the Pacific Northwest DEVELOPMENT region for JPMorgan Chase, whose foundation helped underwrite the conference. The Consulting and Business Development The Foster School’s Consulting and Business Development Center hosts first national conference of Center has made an exemplary pioneer, sharing its secrets of success in numerous collaborations across the country and its kind supporting development of similar centers at the University of Arizona, Rutgers University, Washington State University, and Portland State University. “If not a template, the UW center has certainly provided a model on which to build and modify depending on the specific At its founding, nearly 20 years ago, the Consulting and Business needs of your school and community,” says Williams, who noted Development Center had virtually no peer in higher education. Its he was among the first to use the book for his courses at Rutgers. purpose—to educate students while accelerating the development In centers from Rutgers to Wharton to Northwestern to UCLA, of businesses in underserved communities—was trailblazing. the Foster School now finds itself in good company. Now that trail is increasingly traveled. The ranks of univer- With more to come. According to Verchot, the conference sity-based centers, programs and individuals supporting the participants departed on one shared action item: to grow the development of small businesses in their inner-city and rural number of universities serving businesses in underserved commu- communities have grown across the nation. And many of them nities to 100. n were represented at July’s inaugural National Conference on Business Development in Underserved Communities held at the Foster School and hosted—fittingly—by the Consulting and Busi- ness Development Center.
18 FOSTER BUSINESS ARE YOU EXPERIENCED?
The MBA Strategic Consulting Program equips Foster students to apply classroom theories to real-world problems
Genevieve Cohen (MBA 2013) needed experience. An elementary project through the MBA Strategic Consulting Program. school teacher trying to make the considerable jump from educa- “These projects are an invaluable counterpart of the academics tion to business, Cohen knew she’d have to prove her mettle to in that you get actual experience and really get engaged,” says employers, demonstrate that she could apply her MBA knowledge Albano, now a consultant at Accenture who continues to advise to real-world challenges. Foster teams and has delivered a “Consulting 101” intro to many She found myriad opportunities to do just that at the Foster Applied Strategy classes. “It’s critical to have a quality work experi- School. Internships with leading companies. Projects featuring live ence to point to, especially when you’re a career changer like I was.” businesses and brands (see sidebar pg. 20). And the MBA Strategic This year’s model Consulting Program which, for the past decade, has deployed The program’s portfolio of recent clients includes Fortune 500 teams of graduate students to analyze business problems for a corporations (Starbucks, Intel, PACCAR, Alaska Airlines), smaller variety of successful firms in the region and beyond. firms (Outdoor Research, Web Turner, OneEnergy Renewables, Gordon Neumiller, the program’s director, says that these Isernio’s Sausage), non-profits (Seattle Children’s Hospital, Seattle education-in-action projects provide good value for clients—and Opera), and, increasingly, firms farther from home (Machine crucial value for students. Perception Technologies of San Diego, California, Scharffen Berger The dean agrees. Chocolate of Hershey, Pennsylvania). “The classroom is a great environment for learning theories The type of projects range from supply chain efficiency to and frameworks,” says Jim Jiambalvo, dean of the Foster School. expansion strategy to brand management to database marketing “But it’s critical that students know how to apply these theo- and anything in between. ries and frameworks to real-world problems. The MBA Strategic One of last year’s collaborations was with Saltchuk Resources, Consulting Program directly addresses this critical need, and a diversified holding company founded by long-time Foster Advi- ensures that our students can roll up their sleeves and solve the sory Board member Mike Garvey. complex, unstructured problems they’ll face on the job.” The challenge? To develop a more robust and integrated Genesis Saltchuk corporate brand across its family of 35 distinct companies Ten years ago, Dave Albano (MBA 2004) was an MBA candidate that are loosely assembled around a theme of transportation and with an English degree who had stumbled into the wireless distribution. telecom industry. “I found that I enjoyed solving problems and “This task was not in our skill set,” admits Saltchuk president making businesses run more efficiently,” he says. “I became an Tim Engle (MBA 2002). “So we looked outside for help.” internal consultant wherever I worked.” He found the team of Foster Evening MBA students—Etta At Foster, Albano parlayed this passion into an existing MBA Mends, Tyler Edgar, and Rose Tucker—was more than up to the student organization called the Business Consulting Network. As task. They worked closely with the company’s many stakeholders to president, he worked—along the margins of his academic work— produce a set of guidelines, both internal and external, designed with Neumiller to recruit area businesses with strategic problems to make Saltchuk a stronger and more cohesive company. to solve, deploy student teams, and provide quality control. Mends, who works full-time in finance at Boeing, found the He and Neumiller believed that the experiences were so valu- deep dive into the unfamiliar waters of branding and organiza- able—and time-consuming—that they should be worth class tional structure to be exhilarating. “Not only did this project offer credit. They pitched the idea to school administration. And soon me a completely different perspective on business,” she says, “it there was a formal class, then a requirement, then an official also gave me a glimpse into a smaller company that moves so program of the Foster School. quickly to adapt and evolve.” Today the Full-time MBA Program requires a 10-week Applied The client was more than satisfied. “We got a heck of a deal,” Strategy project in the first-year core, and many second-year says Engle. “In terms of return on investment, it’s tenfold, easily. students and Evening MBAs elect to take on a longer Field Study Their work will guide our thinking for a long time to come.”
FALL 2013 19 Repeat business “We always tell students that the way to turn their project into The largest and most consistent client of the MBA Strategic a good job is to do a good job on the project,” says Neumiller. “It Consulting Program is certainly Microsoft, which generated five may not land you a job with your client company, but it will help different projects this past year. you get a job.” One of the longest running collaborations is with Windows Mends already has a good job, and really came to the Foster Azure, Microsoft’s cloud computing venture. Under the guidance School to remain competitive. But she says that challenging of Suresh Sathyamurthy (MBA 2007), group product marketing experiences like the Saltchuk project have opened her world. “My manager at Windows Azure, Foster MBAs have helped scale the ambitions of what I want to do are growing as I grow with the business, identify market opportunities, understand the partner program,” she says. ecosystem, and analyze strategy over the past few years. For Cohen, the former schoolteacher, the MBA Strategic “The quality of work has been extremely good,” says Sathy- Consulting Program was an essential facet of her management amurthy, who was introduced to Microsoft while doing a student education. Working with different combinations of classmates, consulting project defining value bundles for the Xbox console. she delivered a business development plan for Ecologists Without “The Foster students collaborate well and work with the end Borders, a supply chain solution for Alaska Airlines and an inter- outcome in mind. This collaboration stands out in every presenta- national expansion analysis for Starbucks, as well as a dynamite tion and in every meeting.” brand audit for Tequila Partida. Takeaways “Understanding the different types of clients, different person- At the end of the day, standing out is the name of the game for alities, different challenges that each consulting project brings was every MBA looking to leverage rich experiences into interesting a critical piece of my education,” Cohen says. and impactful work. Her first job after graduation from Foster? Consulting.n
REAL, SMOOTH Foster MBA students learn to market premium tequila
If tequila could be said to have any role in higher education, it is—at similarly compelling challenge expanding the brand of Microsoft’s next- best—as a distraction. generation Xbox One, as presented by Jamil Rich (MBA 2002), director At least, typically. of Xbox Brand. In Mark Forehand’s Consumer Marketing and Brand Management The Partida teams organized focus groups to understand their class this past spring, however, tequila served as a powerful peda- market demographic, interviewed bartenders and other taste-makers, gogical tool. Tequila Partida, to be precise. The going concern of one and delved deeply into the category, competition, packaging, pricing, Gary Shansby (BA 1959), chair of the Foster School Advisory Board and and position. They even studied the Partida mascot known as its “spirit renowned branding guru. bird.” After a career of building obscure or failing consumer brands into Some common themes emerged from the final presentations: Confir- blockbusters—Famous Amos Cookies, Mauna Loa Macadamia Nuts, mation that educated young people are largely unaware of the critically Terra Chips, Spic and Span, Vitamin Water, to name a few of the 50+— acclaimed brand. That they equate tequila with fun (and sometimes he has recently devoted himself to building a super-premium brand of a bit too much fun). That they trust friends and bartenders more than tequila from scratch, which is to say, from the finest 100 percent pure companies. That Partida’s online image needed an update—and a blue agave grown on a single estate in Mexico. triple-shot of social networking. That Shansby should have some fun Partida is considered by aficionados to be among the finest tequilas with the spirit bird. available. The problem? Young adults barely know it exists. As Shansby Bull’s-eye. The student insights aligned almost perfectly with the formulated a new strategy to build his brand among this key demo- meticulously developed strategy that Shansby had in the works. His graphic, he decided to open his company’s challenge to Forehand’s MBA recently launched marketing campaign comes complete with a robust students. social media presence and a focus on the fun side of even this finest of A brand audit has been the capstone of Forehand’s course for years, tequilas, as exemplified in an irreverent—and hilarious—promotional but this is the first time the brand’s founder and CEO has beenin the video that could well go viral among the demographic. room to introduce the case and ultimately help evaluate the proposed “To be in a marketing strategy class with a professor the caliber of solutions. Mark, these students are getting a great education,” Shansby says. “But “I heard very clearly from students that Gary’s involvement provided I think they’ve reached out even further through this project. both a depth of insight about the brand and a special motivation to “I was blown away by how smart and how intuitive and how serious take their analysis to the fullest level,” Forehand says. and how fun these students are. It really pleased me and made this Student teams had to choose between marketing Partida and a entire exercise a wonderful experience.” n
20 FOSTER BUSINESS EXEMPLARY ACCELERATOR The Buerk Center’s pioneering Jones + Foster Accelerator Program is helping turn entrepreneurial student teams into successful start-up teams
On June 10, 2013, US News & World Report posted a story on mance crew socks. “The reality was that it was hard. Our mentors its website regarding the recent efforts by many colleges to help really challenged us.” student entrepreneurs launch companies. The Foster School’s Director and friend and co-founder Riley Goodman launched Buerk Center for Entrepreneurship was featured as an “early their business while in high school and were having success. But, pioneer in campus accelerators,” which are essentially programs they admittedly had a lot to learn. offering mentorship, interaction with other start-ups, physical “Our biggest takeaway was recognizing how little we knew,” space, and the possibility of funding, all in a short time-frame. says Director. “For instance, we weren’t doing a good job with It’s a telling description about the speed at which entre- our financials at all. We thought we were going to need to raise preneurs move—in the case of the center’s Jones + Foster money, but working with our mentors realized we could finance Accelerator Program, being an “early pioneer” is based on three from our cash flow.” years of existence. The financials weren’t the only thing the start-up tackled. Their The program began in 2010 when the Herbert B. Jones Foun- milestones included developing a comprehensive marketing plan, dation provided a grant to the Buerk Center to offer additional securing 50 retail locations, creating a new fulfillment process, seed funding totaling $80,000 a year to the most promising establishing a retail advisory board and selling 50,000 pairs of student teams that competed in the annual Business Plan socks in Q4 of 2012. They met them all. Competition. And while the duo received the $25,000 award for their “We wanted to accelerate some of these start-ups,” said efforts, they both agree Michael Bauer, president of the Jones Foundation, and a long- that the real reward time supporter of the Buerk Center and its Business Plan was working with their Competition. “So we came up with this idea of a real financial mentors, including incentive for the teams to set and reach key milestones in the Marc Barros (BA 2003), company’s development.” co-founder and former Since that original grant, individual gifts have been made by CEO of Contour, Geoff some of the center’s board members, and the Jones Foundation Entress, partner at has renewed the grant for another three years. In addition, the Voyager Capital and one program is now open to student teams from around the university, of Seattle’s best known not just those who have competed in the Business Plan Competi- angel investors, and Jesse tion. Proudman, CEO of Blue However, the proposition remains the same. Teams work with Box. center staff and mentors—some of Seattle’s top entrepreneurs “Every one of the and investors—to develop challenging, but realistic milestones to mentors wants these achieve in a six-month time frame. The milestones can range from students to launch their licensing intellectual property to launching a website to raising companies or bring an money. Along the way, teams produce monthly reports, meet with entrepreneurial spirit to their mentors, and revise milestones if needed. When the program larger companies in our is complete, the teams are eligible to receive follow-on funding region,” says Entress. up to $25,000. And yet, the start-up process is messy and unpre- “We’re all local. That’s key. dictable; achieving the agreed upon milestones is no easy task. We spend a lot of time “Honestly, I thought it was going to be a cakewalk,” says on campus, talking with A comprehensive marketing plan was a key Jake Director, co-founder of Strideline, a producer of high perfor- students. Being a mentor milestone for Strideline co-founders.
FALL 2013 21 CURRENT LINE-UP 2013 marks the fourth year of the Jones + Foster Accelerator Program, and it’s shaping up to be a good one. After a competitive application process, seven teams were accepted:
LUCKYSTEPS LuckySteps is a mobile game app that rewards corporate employees for exercising more and improves their employer’s bottom line.
POLYDROP, LLC in this program is a big time commitment, but we are all Grand Prize Winner, UW Environmental Innovation Challenge 2013 willing to do it because we see value being created.” Finalist Prize, UW Business Plan Competition 2013 Entress also served as a mentor to JoeyBra, founded by Mariah Gentry (BA 2013) and Kyle Bartlow (BA 2013), a PolyDrop has created a conductive polymer additive for paints, company that made their debut at the 2012 Business Plan primers and coatings that is lighter, more affordable, longer lasting, Competition. and has better adhesion than other products on the market. “The Business Plan Competition was about us demon- strating our commitment and passion. The Jones + Foster PROJECT WEDGE Project Wedge is a plug-in-and-play projector for tablet devices, Accelerator Program was about taking it to the next level, smart phones, and other electronic devices that have HDMI video- establishing where we wanted to go, and working with the out capabilities. mentors to help us get there,” says Gentry. “Investment advice was the key for us. We weren’t used PURE BLUE TECHNOLOGIES to asking people for money. You can read about it, but Grand Prize Winner, UW Business Plan Competition 2013 to have someone walk you through the intricacies of the process was amazing. We wanted the right people with Second Place Prize, UW Environmental Innovation Challenge 2013 the right connections and the right intent. They guided us Pure Blue Technologies innovates low-cost, efficient, and envi- through that process.” ronmentally friendly water treatment solutions for the oil & gas The results for JoeyBra included developing new sizes industry. and products, completing negotiations for fulfillment services and closing a financing round of $110,000. STUDENTRND And while establishing milestones and receiving mentor- StudentRND creates the next generation of technologists by ship is a great experience, it doesn’t always translate to inspiring high school and college students to work on tech projects success. Of the twenty teams having participated in the in their spare time. Jones + Foster Accelerator Program in the last three years, seven no longer exist. TORCH ILLUMINATION Torch Illumination is a soy candle company on a mission to produce “This is the real life part of what we do. This is not an eco-friendly candles that support social and environmental causes. assignment or a project for a class,” says Connie Bourassa- Shaw, director of the Buerk Center for Entrepreneurship. Z GIRLS “If, for one reason or another, a team fails, that’s fine Second Place Prize, UW Business Plan Competition 2013 because I know they’ve learned a lot. They’ll come back stronger and more prepared for their next endeavor.” Z Girls measurably improves girls’ participation rates in sports Entress echoes Bourassa-Shaw’s sentiments. “The (and positive self image during their adolescent years) by teaching young female athletes mental and emotional skills through majority of start-ups fail. Failure is a big part of being an coaching and camps. entrepreneur. It’s a learning experience. What we are trying to provide is a more valuable learning experience. If one company succeeds that would not have otherwise—we can call it a success.” n
22 FOSTER BUSINESS FACULTY
Great (Entrepreneurship) Reads
Foster faculty experts recommend their go-to books on creating a company
It’s well-known there are a plethora of books available about how to start company. But launching a company is time-consuming and difficult. To save you time and energy, the Foster School’s entrepreneurship professors have recommended a few of their favorite books. If you’re looking for a how-to guide for starting a company or just plain inspiration, keep reading.
The Art of the Start: The Time-Tested, Battle-Hardened The Lean Startup: How Today’s Entrepreneurs Use Guide for Anyone Starting Anything Continuous Innovation to Create Radically Successful (Guy Kawasaki) Businesses (Eric Ries) “It’s a very approachable book that would make a great summer read for anyone. Kawasaki is the master of breaking down “It is a must-read for entrepreneurs. The discipline of a minimum complex problems into common-sense approaches and has viable product, testing and measuring is one every entrepreneur fantastically sticky catch phrases to go along.” should at least know exists.” – Emily Cox Pahnke, assistant professor of management and – Deb Hagen-Lukens, lecturer of marketing Neal & Jan Dempsey Faculty Fellow “Teaches you how to do smart, fast, targeted tests to disprove “It’s a how-to book that provides good practical advice for hypotheses.” budding entrepreneurs.” – Emer Dooley, Jacob Colker – Suresh Kotha, professor of management, Olesen/Battelle Excellence Chair in Entrepreneurship and research director, Likeable Social Media: How to Delight Your Customers, Buerk Center for Entrepreneurship Create an Irresistible Brand, and Be Generally Amazing on Facebook (& Other Social Networks) Successful Business Plan: Secrets & Strategies (Dave Kerpen) (Rhonda Abrams) “I’m fond of this book and think it is one that entrepreneurs— Entrepreneurship: Starting and Operating a Small Business especially those targeting consumer markets, but not exclusively (Steve Mariotti & Caroline Glackin) those—could really benefit by reading.” The Startup Owner’s Manual: The Step-By-Step Guide for – Deb Hagen-Lukens Building a Great Company (Steve Blank & Bob Dorf) The Monk and the Riddle: The Art of Creating a Life While Making a Living “I find most books with the title ‘Entrepreneurship’ to be boring (Randy Komisar) and pedantic about this vibrant subject. But I find these and materials published by The Planning Shop to be well written.” “This book offers a broader philosophical approach to thinking – John Castle, retired lecturer of entrepreneurship about what you would like to accomplish with your life. The context for addressing these big issues is entrepreneurship.” The Startup Owner’s Manual also made Emer Dooley and Jacob – Suresh Kotha Colker’s list. “This book teaches you the big picture of how to do customer The Leap: A Memoir of Love and Madness in the development and why it is important. It also goes through the Internet Gold Rush business model canvas.” (Tom Ashbrook) – Emer Dooley, Pat Hughes Faculty Fellow and Jacob Colker, “It is a recount of an international reporter who joins an old Entrepreneur-in-Residence at UW Center for Commercialization college classmate on an Internet venture without any business experience. If you’re looking for inspiration, read this book.” Rework – John Castle n (Jason Fried and David Heinemeier Hansson) “Smartest book out there for how to run a team efficiently.” – Emer Dooley, Jacob Colker
FALL 2013 23 FACULTY
SEVEN SCHOLARS
Foster School adds promising faculty to every academic department
The Foster School continues its roll of strong recruiting classes to enhance each of its academic departments. This year’s seven new hires join the school at varying stages of career. They bring deep knowledge in areas that range from financial accounting to social media, fatigue in the workplace to intellectual property, market regulation to supply chain management. They’re also indefatigable skiers and accomplished musicians, avid runners, bikers and hikers, former boxers, chamber choristers and quiz bowl champions. The common denominator is a proven track record of excellent teaching and expert research. And a boundless curiosity. Here is the Foster School faculty class of 2013:
ACCOUNTING Senior Consultant, Deloitte & Touche, 2004-08 Tax Accountant, Brown, Wheeldon, Tajoya and Barrett PC, 2003-04 Expertise: Executive compensation, asset valuation Extracurricular: Enjoys gardening, cooking, family activities (with two young children in the house).
MANAGEMENT & ORGANIZATION DAVID TAN Assistant Professor of Management PETER DEMERJIAN Assistant Professor of Accounting PhD (organization and management), Emory University, 2009 PhD (accounting), University of Michigan, 2007 Assistant Professor, Georgetown University, Assistant Professor of Accounting, Emory 2009-13 University, 2007-13 Expertise: Organization theory and strategy; Trust Accountant Supervisor, Mellon Financial intellectual property; semiconductor industry Corporation, 1997-2000 Extracurricular: Ran cross country and sang in Expertise: Financial accounting, debt the Chamber Choir at Creighton University; contracting, debt covenants, managerial ability taught a course called “The Economic Sociology Extracurricular: Plays clarinet, saxophone, CHRISTOPHER BARNES of Emerging Technology” at Emory. tuba, bass guitar, mandolin, French horn, Assistant Professor of Management a little piano, and is learning violin with his PhD (management), Michigan State, 2009 8-year-old son. Has run three marathons and FINANCE & BUSINESS ECONOMICS trained as a Golden Gloves boxer. (“I got Assistant Professor, Virginia Tech, 2011-13 popped in the jaw a few too many times Assistant Professor, United States Military sparring with better boxers,” he says, “and Academy at West Point, 2009-11 realized competition may not be for me.”) Research Assistant, Michigan State University, 2004-09 Behavioral Scientist/Acquisitions Officer, US Air Force, 2000-04 Faculty Research Excellence Award, Management Department, Virginia Tech 2012, 2013 SIOP Top Poster Presentation Award, 2013 PHILIP BOND Favorite Faculty, Virginia Tech, 2012 Associate Professor of Finance and Norman J. Metcalfe Business Professor Expertise: Sleep and fatigue issues in the PhD (economics), University of Chicago, 1999 PAIGE PATRICK workplace; team performance and decision Assistant Professor of Accounting making; emotional labor; behavioral ethics; Associate Professor of Finance, University of compensation Minnesota, 2010-13 PhD (accounting), University of Colorado at Boulder, 2013 Extracurricular: Enjoys mountain biking.
24 FOSTER BUSINESS SEVEN SCHOLARS FAST START Foster School adds promising faculty to every academic department Oliver Rutz named Assistant Professor of Finance, University of degrees from universities on three continents: Marketing Science Pennsylvania, 2003-10 Stanford University (North America), Tsinghua Institute “Young Scholar” Assistant Professor of Finance, Northwestern University of Beijing (Asia), Ecole Centrale Paris (Europe). University, 1999-2003 Oliver Rutz, an associate professor Member of Institute for Advanced Study, of marketing at the Foster School, Princeton University, 2002-03 MARKETING & has been named a 2013 Young Associate Editor, Economic Theory INTERNATIONAL BUSINESS Scholar by the Marketing Science Associate Editor, Journal of Finance Institute. Expertise: The role of financial institutions in The award recognizes indi- the economy and on the regulation of credit viduals who have earned their markets doctorate in the last 4-7 years Extracurricular: Multiple finisher of the and whose work suggests they American Birkebeiner, the famed 50K are potential leaders of the cross-country ski “marathon” in Wisconsin; next generation of marketing hopes to climb Mount Rainier. academics. Rutz worked as a senior asso- ciate at McKinsey & Company in INFORMATION SYSTEMS & his native Germany before earning OPERATIONS MANAGEMENT ABHISHEK BORAH his PhD at UCLA in 2007. He Assistant Professor of Marketing served as an assistant professor PhD (marketing), University of Southern at the Yale School of Management California, 2013 before joining the Foster School Analyst, McKinsey & Company, 2004-07 in 2011. Fellow, Marketing Science Doctoral Consortium, His research expertise is in 2009, 2012 lucrative but little-understood Outstanding Doctoral Student Researcher areas of Internet commerce: paid Fellowship, USC, 2012-13 search advertising, online word Winner of MSI research competition on of mouth, banner advertising, “Communication and Branding in a clickstream analysis, ad copy effec- Digital Era,” 2011 SHI CHEN tiveness and landing page design. Assistant Professor of Operations Management Winner of Research Proposal Competition, For his recent Journal of Wharton Customer Analytics Initiative, 2010 PhD (production & operations management), Marketing Research paper Stanford University, 2013 Expertise: Social media, Internet, innovation, modeling a positive spillover effect text-mining, natural language processing, Analyst/Researcher, Google/Stanford Graduate between generic and branded paid time series analysis School of Business, 2011-12 search ads, Rutz won the journal’s Extracurricular: Winner and runner-up of Analyst/Researcher, DCH Global Inc./Stanford 2012 Paul E. Green Award and the numerous national quiz competitions in India. Center for Integrated Facilities Engineering, American Marketing Association’s Has run 11 marathons in the past six years Stanford Graduate School of Business, and coached the USC marathon team. Was the 2013 Donald R. Lehmann Award, 2009-10 vocalist of a grunge band in Delhi during his honoring the best dissertation Larry C. K. Yung Doctoral Fellowship, undergraduate years (“Funny that I landed at paper published in the Journal Stanford University, 2008-09 the birthplace of grunge,” he says). n of Marketing or the Journal of Expertise: supply chain management, project Marketing Research. n management, sustainability in operations management. Extracurricular: Enjoys swimming, tennis, and sailing; avid reader; interested in the develop- ment of green technologies; earned master’s
FALL 2013 25 FACULTY
RESEARCH BRIEFS
ROUND-TRIPPING TRENDING EMBEDDING ETHICS Lifting the veil on a pervasive form Job satisfaction, over time and in When modeling ethical culture, of offshore tax evasion context, is the best predictor of trickle-down management isn’t enough voluntary turnover Bermuda. Bahamas. Cayman Islands. Dream How do you build an ethical culture? vacation spots? Maybe. Places to evade In the complex topography of the United States income taxes? Definitely. modern organization, it’s not as easy as But nobody—not even the IRS—has setting standards at the top and expecting been able to quantify the volume of tax them to trickle down an orderly chain of evasion occurring via offshore tax havens. command. Until now. A new study by Jacob Thor- In a new study, professor of manage- nock, an assistant professor of accounting ment Bruce Avolio proposes, instead, a at the Foster School, sheds first light on a multilevel approach to more effectively form of illegal tax evasion called “round- embed ethics throughout an organization. tripping,” in which Americans disguise their Job satisfaction has long been the gold- This new model, developed from exten- investments in US securities by routing standard predictor of voluntary turnover sive observations of overlapping US Army them via shell corporations based in in organizations. To put it simply, happy combat units, acknowledges the circuitous offshore havens. employees are most likely to stay put. path of ethics transmission. People are Thornock and his co-authors were able But how do we measure an individual’s affected in roundabout ways, not only by to estimate that between $34 and $109 satisfaction in the workplace? Until their direct supervisor, but by the mecha- billion is invested annually through illegal now, only in the moment—and without nisms in the climate and culture and by round-tripping. accounting for the attitudes of co-workers. “unofficial” leaders who earn de facto Now a groundbreaking study by authority from their peers. Thomas Lee and Terence Mitchell, profes- Avolio, the director of Foster’s Center for sors of management at the Foster School, Leadership and Strategic Thinking, believes measures job satisfaction over time, and in the study’s findings provide insight to any the context of colleagues. In doing so, the kind of organizational change, from innova- researchers have dramatically increased the tion to safety to customer-centrism. ability of organizations to predict whether “These kinds of change-imple- or not an employee will choose to quit. mentation projects that are typical in The trajectory of job satisfaction proved organizations today cannot rely on simple a far better predictor of voluntary turnover top-down, command-and-control leader- They derived this through a novel than any single measure. And the attitudes ship,” he says. “You have to find a way to analysis of the risks and rewards of of co-workers—especially a cohesive influence people across the organization this pervasive form of tax evasion. group—create a contagion effect on an to be owners, not renters. Renters do the An increase in potential risk of being individual’s job satisfaction and subsequent minimum—at best—of what is expected caught—tightening international exchange flight risk. while owners foster, guide and influence agreements—results in decreased volumes “Managers should be aware of the change.” n of round-trip investment. An increase in effects of morale on individuals’ job satis- potential reward—rising US tax rates— faction, and expand their efforts to measure results in a two- to three-fold increase in satisfaction over time and in organizational round-trip investment. context,” Lee says. “Changes to the US tax code or The paper and its authors have won the exchange agreements should have no prestigious 2013 “Scholarly Achievement influence on the actions of legal investors Award” from the Academy of Manage- in foreign nations,” Thornock says. “These ment’s Human Resources Division. n costs and benefits only apply to a tax evader.” n
26 FOSTER BUSINESS TEACHING EXCELLENCE
Mark Hillier wins his second PACCAR Award for Excellence in Teaching
What sets him While studying engineering as an under- apart is his ability to grad at Swarthmore, Mark wanted to learn demystify some seri- what exactly his father did, so he enrolled ously complicated in an operations research course. “I just fell material—spread- in love with it,” he says. sheet modeling, Hillier earned an MS in operations linear programming, research and a PhD in industrial engi- simulation, decision neering and engineering management at analysis—in play- Stanford, then joined the faculty of the fully simple ways. Foster School in 1993. Ergo, the Legos. He has been an Evert McCabe Endowed To introduce the Fellow since 2004, was a Neal and Jan concept of linear Dempsey Endowed Faculty Fellow from programming, Hillier 2002-04, and received his first PACCAR doles out the candy- Award in 2007. He collaborated with his colored plastic bricks father to write the text book he uses in his as the raw materials classes. of a rudimentary Hillier’s award-winning research focuses chair and table on building mathematical models to manufacturer. After improve operations in real-world settings. running the students He also contributes to a range of global “I am truly honored and deeply touched,” through different scenarios, they come health and education modeling projects gushed Mark Hillier upon receiving his away with an indelible lesson in how to through the Foster School’s new research second PACCAR Award for Excellence optimize resources to maximize profits. collaboration with the Bill & Melinda Gates in Teaching at the 2013 Foster MBA Another classic example of his toys- Foundation. graduation. as-tools methodology is the legendary Simplifying the complex The Foster School’s highest teaching “Professor Hillier Action Figure” which But it’s Hillier’s teaching that excites his honor was established in 1998 by PACCAR embodies a marketing modeling problem students. They find his playful methods have Inc, the Bellevue-based Fortune 200 global aimed at spurring better decision making. a serious payoff. technology company. Its winner is selected (A decade or so ago some students “Mark teaches an underappreciated annually by a panel of Foster MBA students fashioned an actual Action Figure from a core skill in a world-class style,” wrote one and includes a $35,000 prize. doctored “Ken” doll that is exuberantly MBA student in nominating Hillier for the “I feel very blessed to have a job that I displayed in a commemorative box.) PACCAR Award. “The tools he shares with love and to spend my days with such intel- “I try to keep things fun,” says Hillier. us prove to be among the most valuable ligent people who challenge and teach me “When we’re discussing some vague and useful that Foster MBAs gain during every day,” continued Hillier, an associate mathematical concept, I think it’s helpful the program.” professor of quantitative methods. to let them actually see it at work. We start “Wonderfully organized and easy to “And what other job pays you to play simple and then we add complexity and follow, with a great sense of humor, Mark with Legos?” real-world applications so they can see how is a pleasure to be around,” noted another. Wait, what? Legos? cool these tools are.” “You can really tell how excited he is about Quantitative easing The family business teaching the subject matter.” Hillier teaches the core quantitative Hillier’s command of quantitative methods A third summarized Hillier’s perfor- methods course in Foster’s Full-time MBA, may have a genetic component. His father, mance in two simple words: “Teaching Evening MBA, Technology Management Frederick Hillier, is a professor emeritus of excellence.” n MBA and Global Executive MBA Programs. operations research at Stanford University. ©iStockphoto.com / argalis, alashi, Logorilla alashi, ©iStockphoto.com / argalis,
FALL 2013 27 FACULTY
Mercurial Marketer
Rob Palmatier receives national award for early contribution to marketing strategy research
Spirit of reinvention Palmatier’s research is directly relevant Palmatier started out a fair distance from to industry. “My papers contribute new marketing. He earned BS and MS degrees theories that allow businesses to more in electrical engineering from Georgia Tech effectively execute marketing strategies,” before serving as an officer on a nuclear he says, “or they test existing marketing powered submarine in the US Navy. He strategies to see if they really work.” followed with an MBA from Georgia State A recently published study outlines the University, then went to work for Raychem conditions under which it makes sense for Corporation, a Fortune 500 producer of a firm to shift strategically from providing industrial electronics components, in 1991. products to providing services. A paper on Palmatier directed worldwide strategic “relationship velocity” finds that a more planning and marketing for a division of effective way to predict customer decision- Raychem, and rose to general manager of making is through surveys that chart the its European operations before its 1999 trajectory of satisfaction or loyalty over time acquisition by Tyco International. In 1998 rather than in a single snapshot. Another he became president and chief operating new study identifies the conditions under officer of C&K Components, a $110 million which an organization’s customer-centric producer of electro-mechanical switches. restructuring pays off financially. After C&K was purchased at the height Next chapter of the dotcom bubble, Palmatier tried early All of this has earned Palmatier a surfeit retirement. of honors. He is a six-time AMA-Sheth If Rob Palmatier seems to be in a hurry, it’s It didn’t take. Foundation Doctoral Consortium Faculty because he is. “It turns out that I just don’t have the Fellow. He was named the Palgrave Youth The professor of marketing and John personality for it,” he admits. “I tried a life- Scholar of 2008 and a Marketing Science C. Narver Endowed Professor in Business time of hobbies in one year. None of them Institute Young Scholar in 2007. In 2008 he Administration got a late start in academia, was enough.” received the Journal of Marketing’s Harold only commencing doctoral studies after So on to graduate school to study H. Maynard Award for significant contribu- attaining graduate degrees in electrical marketing at the University of Missouri, tion to marketing theory and thought. engineering and management, serving five a new adventure to sate his intellectual But he spends little time dwelling on his years in the Navy and another ten as a wanderlust. accomplishments. So much yet to accom- senior executive in industry. On a roll plish. “I was the oldest doctoral student in my After postdoctoral work at Northwestern, High on Palmatier’s to-do list is his plan program,” says Palmatier. “I had to catch Palmatier joined the Foster School in 2007. to launch a new UW Center for Sales and up to my age group.” He’s been on a remarkable run ever since. Marketing Strategy (CESMAS), to be head- He’s done that, and more. Since To date, Palmatier has written 13 mono- quartered at the Foster School. It’s mission? adding “scholar” to his curriculum vitae, graphs, book chapters and MSI Working To align important sales and marketing Palmatier’s research around relationship Papers. His 500-page book on marketing problems with academic research and marketing and strategy has been so prolific channel strategy is in press. And he’s analysis techniques to develop strategies and impactful that he received the Amer- authored 25 scholarly papers published or that improve business performance, and ican Marketing Association’s prestigious forthcoming in the field’s top peer-reviewed to facilitate business-academic collabora- Varadarajan Award for Early Contribution journals, with another five currently under tion to create and disseminate sales and to Marketing Strategy Research earlier this review or revision. As a testament to his marketing knowledge. year. influence, his scholarly work has been cited “Stay tuned,” he says. n more than 2,000 times.
28 FOSTER BUSINESS ALUMNI
All In
Barry Shulman brings his “A” game to get the most out of business, poker and life
voraciously. And he began winning money in progressively bigger tournaments. Shulman couldn’t help but notice that interest in the game was exploding. The venues had gone upscale, a long way from the game’s smoky backroom past. There were more and bigger-money tournaments. And they were on TV. Plus, the Internet was just about to break. “It was crystal clear to me to me that poker was going to boom,” Shulman says. “And I wanted to get in on the business.” Ruling out a casino, he instead purchased Card Player Media with his retirement funds. With Shulman as publisher and son Jeff as president, Card Player has become a major force in the industry. Shulman & son are as responsible as anyone for poker’s continuing ascent. The sweet life Barry Shulman (BA 1967) is not a profes- Times, The Wall Street Journal, Forbes, At 67, Shulman remains the right kind sional poker player. Businessweek, Fortune, Barrons and a host of busy for one averse to retirement. He Sure, he has a pair of championship of other media. travels the world by cruise ship with his bracelets from the World Series of Poker, 16 He also developed real estate of his wife Allyn, and blogs about his experiences tournament titles, and 119 finishes in the own. In the ’80s and early ’90s, Shulman at JetSetWay.com. He’s the CEO of the cash—adding up to winnings in excess of bought, developed, managed and sold Shulman Family Foundation, and keeps a $4.7 million. And he’s authored three books condominiums in 19 Northwest commu- hand in the real estate business with a few and a video on the game’s intricacies. nities, usually with a trusted group of low-risk commercial properties. But it’s not how he makes his living. investors. The deals were conservative, and He leads Card Player and plays a lot of “People think I just played poker all my lined up before seeking capital. And he cards, a hobbyist of the highest order. This life,” says Shulman, whose inscrutable always had skin in the game. makes Shulman patriarch of the “First Family granite scowl at the card table is straight “I never did deals that I didn’t have a of Poker”—Allyn is a champion in her own out of Central Casting. “That’s never how big investment in,” Shulman says. “I wasn’t right (with more than $1 million in winnings) I paid my rent. My whole life I’ve worked, just making money by raising money. If it and Jeff is one of only three people this worked, worked.” was going to make money for me, it had to century to make the final table at two World After graduating with a degree in make money for the other guys, too. Series of Pokers (2001 and 2009). accounting from the Foster School, Shulman “No investor in any of my deals ever lost Reflecting on a still-vibrant career, started in his father’s wholesale liquor a penny.” Shulman believes that success in business business. What happened in Vegas and in poker comes from the same place. Real money Having accumulated a tidy nest egg—and “In business,” he says, “if you do the But Shulman had his own ambitions. He no debt—by the early 1990s, Shulman right things at the right times in the right began selling non-traditional securities in decided to retire to Las Vegas, travel a bit, places and with the right people, some- oil and gas and real estate—“anything that and maybe play a little poker, a hobby back times you get lucky. I’ve never won a poker wasn’t stocks and bonds,” he says. in his college days. tournament without getting lucky. I’ve also Throughout the 1980s his expertise in Retirement didn’t suit him, intellectu- never won one where I wasn’t playing my real estate was quoted in the New York ally. But poker did. He studied the game best game. The two go together.” n
FALL 2013 29 ALUMNI
The World is Her Oyster
Thao Hong has made a grand life and living in service of global economic development
says. “If you can get there, you can enjoy them like a local, almost.” After Shanghai, Hong completed the Advanced Economic Studies Program at the Foreign Service Institute, capped by an externship with the Boeing Company. When Boeing offered to retain her, she decided it was time to come home. A new mission Hong found an excellent fit in Boeing, America’s largest exporter whose fastest growing markets are international. “We live in an increasingly interconnected world,” she says. “And it’s wonderful to be a part of this great company that helped facilitate Barely a decade out of school, Thao Hong Department was her “shoot-at-the-moon” international travel, trade and diplomacy. (BA 2001) has made enviable progress on a goal, she bet that studies in finance and We’re philosophically aligned.” world-class bucket list. international business at the Foster School Hong began as director of international Climb Mt. Kilimanjaro. Check. Study would be a suitable preparation. strategy, leading a team of functional pastry in Paris. Check. Hike the Inca Trail They were. After getting her start experts to chart the enterprise global to Machu Picchu. Check. Learn to Tango in working at Nordstrom and Expeditors Inter- strategy of Boeing Commercial Airlines, Buenos Aires. Check. national, she landed a job in the Foreign Boeing Defense Space & Security, and Engi- Call it a perk of her itinerant years in the Service and entered its economic track. neering Operations and Technology. US Foreign Service—the job, itself, a signifi- Hong trained in Washington, DC, and Now she is being groomed to lead cant item on Hong’s life to-do list. then served in Taipei, Taiwan, and Shanghai, the next generation of Boeing sales, and “I always wanted to work in diplomacy,” China. Her first role was in consular work, learning the aerospace industry from the she says. “Not only to engage in political but she quickly advanced to representing wheels on up. discussions, but also to build the cultural US interests in trade negotiations with “Boeing is a genuine American icon,” and economic ties that support peace government officials and business leaders Hong says. “I see why people are so proud around the world—and preempt situations in the areas of currency, banking, transpor- and get so emotional about the company like the one my parents found themselves tation and textiles. and its products. It’s contagious.” in.” Experiential learning Travel tips That was the War in Vietnam, from Hong—who speaks fluent English, Viet- Though her scope is global, Hong is tied to which they were displaced for years before namese, and Mandarin, and basic French the Foster School, mentoring students as finding their way to the US. Without money, and Japanese—relished the immersive they work toward a Certificate of Interna- connections or a word of English, they experiences. “That exposure has made me tional Studies in Business and dream of made careers in social work and built appreciate how important it is to under- their own role in the global economy. a decent life for their two daughters in stand the context of foreign cultures,” she Her advice? Federal Way. says. “The world is not so US-centric any Make home out of wherever you are. In Thao, they inspired a profound sense longer. And trade is a vibrant force that Check your ego and learn from the people of mission. pulses with or without us. I still believe it’s you meet. Learn the local language. And Shooting at the moon what facilitates peace around the world.” have a curious mind. “That’s how you find Hong came to believe that diplomacy The job also has been her ticket to see yourself on Kilimanjaro or the Inca Trail or and international trade represented the that world. “In the Foreign Service you end cooking in Paris,” Hong says. “I was curious most direct path to prosperity and peace. up with a network of friends who have and wanted to try it out.” n If an international posting with the State sweet places to live across the globe,” she
30 FOSTER BUSINESS First Ascent
Eddie Bauer CEO Michael Egeck is guiding the legendary Seattle outdoor-clothing retailer back to the summit
says Egeck. “One of the from my dad. I wore it all the way through things they said, and I still college,” says Egeck, smiling. “I also slept find it to be true, is ‘there’s a in an Eddie Bauer sleeping bag when I certain thrill in making stuff.’ lived in a houseboat on Lake Union during To see somebody in your college because it had no heat.” jacket, your shoes—making Having accepted the job, Egeck real, tangible consumer conducted brand research with current and products is very gratifying.” lapsed customers and with people who Making stuff had never purchased from Eddie Bauer. The The thrill in making stuff results were the same. All viewed it as an led Egeck on a leadership authentic, Northwest, outdoor company, trajectory that has included something Egeck says the company had oversight of some of world’s veered away from. most recognizable brands, Outdoor focus including 7 For All Mankind, When asked early on what his turn-around The North Face, Vans, True strategy would be, Egeck says it was an Religion and Columbia easy answer. “I said, ‘We don’t have any Sportswear. But the thought choice. We have one strategy available of leading Eddie Bauer was to us. The consumer is giving us one path never too far out of sight. to walk down and we’re just going to go “In 1992, I wanted to down it while executing on the highest work here. I could see them level possible.’” going off track. I applied That path has included an overhaul for a position and didn’t of messaging and design, and a concen- get it. Then I went to work trated effort to produce cutting-edge new for Columbia Sportswear. products, all while being consistently and On June 5, 2012, outdoor-clothing company In 2006, I tried to purchase Eddie Bauer passionately outdoor-focused. Eddie Bauer named Michael Egeck (MBA with some investors and was turned down A look at their Facebook page or a 1983) as president and CEO. In the press again,” says Egeck. A couple of years later, glance in a store window is reflective of release, Egeck is noted as a “highly the company filed for bankruptcy and was that spirit. So are the recent product awards respected industry leader” with “a proven purchased by Golden Gate Capital. They and accolades coming from sources like track record of building leading apparel and approached Egeck, then CEO of Hurley Field & Stream, Men’s Journal and Outside. outdoor brands.” It might seem a strange International, with the offer. “I wasn’t When asked about his first year with career path for a guy who accepted a looking, but I have a long history with this Eddie Bauer, Egeck is measured. “One of position with Rainier Bank after graduating brand. And, I felt I was 0-for-2, so to get the members of the board was remarking with his MBA, until you learn he never the opportunity to finally work with it, I about all of the things going well (profit showed up for his first day on the job. couldn’t resist.” will more than double this year). I told him The weekend before he was supposed Bauer from birth that inside the company we say it’s ‘direc- to start at the bank, Egeck attended a Egeck was born and raised in Seattle. His tionally correct.’ We’ve got a long way to party hosted by Richard Lentz and Steve grandfather, father, and great uncles were go and lots of things to work on, but we’re Ritchey who had recently launched Union all Seattle firefighters and outdoorsmen, headed the right way, and we will reach our Bay Sportswear. “They were so passionate and so is his brother. Eddie Bauer was a goals.” about what they were doing that they brand with which he grew up. No surprise, that direction has included talked me into going to work for them,” “I remember my first Eddie Bauer a reintroduction of the classic Skyliner Skyliner jacket. It was a hand-me-down jacket. n
FALL 2013 31 ALUMNI
Sharp Leadership
SOG CEO Jerry Heinlen has a mission: to increase awareness of a brand that got it’s start in covert operations
take a reproduction of the including Weight Watchers frozen foods, fabled bowie knife. That Ore-Ida, and Steak-UMM sandwich steaks single commemorative model gave me an excellent business foundation,” became Frazer’s starting says Heinlen. point for designing a full line After leadership positions at big brands, of innovative tools. including Waterloo Industries (manufac- His story turers of Craftsman), Dremel, and Skil Meanwhile, the story of power tools, he returned to the Pacific Jerry Heinlen’s career begins Northwest in 2006 to lead Yakima Products, during his undergraduate Inc. in Portland, Oregon. Yakima was owned years at the US Merchant by private equity investors and Heinlen’s Marine Academy at Kings role was to turn the iconic brand around Point. Upon graduation, and expand internationally. Mission accom- he served as a deck officer plished, he transitioned the business to new aboard vessels operated owners in 2011. by the Military Sealift Cut to SOG Command. “I wanted to stay in the Northwest, and “I had little knowledge networking led me to the opportunity about the maritime industry to be CEO of SOG,” says Heinlen. Since before I entered Kings Point,” joining SOG in January, he’s already forged says Heinlen. “I grew up as ahead with a goal to double the company’s the fifth of six children in a current size over the next four to five years. family that valued educa- “We are off to a great start and expect tion—both of my parents to grow at a healthy double-digit pace in were educators. I chose Kings 2013. Long-term, our goal is to continue to Point because it offered an establish SOG as a market-leading brand excellent education, and and company in the outdoor products If you’re not an aficionado of specialty it was at the academy that I developed a space.” knives and outdoor tools, or the kind love of the sea—but my plans had always Certainly Heinlen’s deep understanding of person who pages through Outdoor included graduate school and a career of brand management will play a large role Magazine’s seasonal gear guides, you might ashore.” in meeting SOG’s goals. But he believes not know about SOG Specialty Knives and Heinlen pursued his MBA at Foster that an environment of open communica- Tools. CEO Jerry Heinlen (MBA 1987) is in order to broaden his focus and equip tion ultimately fuels high-performance counting on a career managing top brands, himself for transitioning between indus- teams. “I encourage everyone to speak up and a talented team, to help change that. tries. He specialized in both marketing and about challenges early enough to enable The SOG story begins in Vietnam, where finance, and although he considered a others to help with a solution before a members of a highly classified US special job with Hewlett-Packard in finance after deadline arrives, to over-communicate ops unit—known as MACV-SOG (Military graduation, he took the marketing path, during times of complexity, and to be Assistance Command, Vietnam – Studies joining the Ore-Ida Foods divisions of H. J. unafraid of articulating what they know— and Observations Group)—carried a bowie Heinz to learn consumer packaged goods and what they don’t know—about an knife greatly admired for its form and (CPG) marketing and brand management. issue. Good communication is the oil that function. That knife would later inspire a “The CPG arena was, and still is, keeps a team’s engine running smoothly.” young designer named Spencer Frazer to a fantastic training ground for young And great leaders have a passion for found SOG Specialty Knives and under- marketers and business people of all disci- on-brand communication that never dulls. n plines, and five years working on brands
32 FOSTER BUSINESS Why is the UW Foster School of Business RANKED #1 by U.S. News & World Report when it comes to MBA students who get jobs?
Just ask these hiring companies that helped get us there:
Amazon.com Facebook NetApp American Life GameHouse Oberto Brands Arryve The Hartman Group PACCAR Beacon Development Group Hitachi Consulting Philips Healthcare Bill & Melinda Gates Foundation IBM PricewaterhouseCoopers Brooks Intel Revel CBRE Intellectual Ventures Russell Investments ChefSteps Kosmos Saltchuk Coinstar KPMG Starbucks Community Attributes Lenati Sustainable Business D.A. Davidson & Co. Liberty Mutual Consulting Deloitte Marchex Tektronix Ecova McKesson T-Mobile Expedia Metzler Real Estate TransPower EY Microsoft Univar Milliman Vulcan Capital
They also helped make us the #8 public MBA program in America.
There are too many to list here, but thank you also to the 314 companies that hired our BA grads this year!
*#1 in “full-time students employed 3 months after graduating” out of the top 25 ranked business schools in the U.S. News and World Report’s Best Business Schools rankings.
You’ll find our alumni working to build great companies in the Northwest and around the world. NONPROFIT ORGANIZATION U.S. POSTAGE PAID SEATTLE, WA PERMIT NO. 62
ADVANCEMENT BOX 353200 SEATTLE, WA 98195-3200
FOSTER
FALL 2013