Diverse Offering David Ingram, MBA’89, Takes His Business in New Directions

VANDERBIL T BUSINESS

OWE N GRADUATE SCHOOL OF MANAGEMENT V Spring 2010 B

TEAM PLAYERS A look back at Owen’s rugby club of the late ’90s

GOLDEN OPPORTUNITIES Alumni who’ve found their calling at Vanderbilt

Diverse Offering David Ingram, MBA’89, takes his business in new directions

www.vanderbilt.edu/magazines/vanderbilt-business

Spring 2010 CONTENTS

2 PERSONAL ASSETS MISCELLANEOUS Durégo Lewis, BS’96, EMBA’06, finds 4 FROM THE DEAN success through teamwork by S ETH R OBERTSON A message from Jim Bradford

10 STUDENT EXPERIENCE 5 EDITOR’S MEMO BrandWeek Louisville offers students a How a lesson in fundamentals gave me practitioner’s perspective on marketing the bigger picture by B RIAN B ELLINGER 12 12 BUSINESS ROUNDTABLE 6 INSIDE OWEN I A conversation with Chad Holliday, Team wins human capital competition I Chair of the Board of DuPont Cooil honored for presentation Korn/Ferry FEATURES partnership announced I Snapshot of Owe n I 18 INFORMED OPINION Team wins finance competition I Bradford Treat health insurance like auto insurance reappointed Dean I Team places second in 24 real estate competition I Student wins and hold people accountable national award by L ARRY V AN H ORN DIVERSE OFFERIN G 30 CORPORATE SPOTLIGHT David Ingram, MBA’89, takes 20 INSIDE BUSINESS Dan Proctor, MBA’83, seeks a new his business in new directions In safe hands I The benefits of barterin g I challenge in Uganda by J ENNIFER J OHNSTON Poaching allowed? by S ETH R OBERTSON 44 CLASS ACTS 37 IN THE NEWS 38 Connie Ritter, MBA’80 I Kathy Harris, Headlines from around the world TEAM PLAYERS MBA’85 I Mike Janes, MBA’94 I Dave 53 CAMPUS VISIT How a ragtag rugby club from Owen Ficeli, MBA’99 Q&A with Melinda Allen, Executive Director learned to play with the big boys of the Leadership Development Program by R ANDY H ORICK 30 56 BOTTOM LINE Broadening students’ thinking through nonbusiness reading by J IM B RADFORD

ON THE COVER David Ingram, MBA’89 Photo by J OHN R USSELL Qualities over quantity.

By design, we produce a relatively small supply of MBAs. But, each year, our graduates are PHOTO ESSAY in very high demand. Perhaps it’s because the companies who hire them prize the qualities 32 GOLDEN OPPORTUNITIES they consistently find in our students. As some of the world’s smartest and best-known organizations will tell you, alittleVanderbiltgoesalongway. Alumni who’ve found their calling at Vanderbilt 18

EING PART OF A TEAM IS SECOND NATURE to Durégo Lewis. Whether playing football for Strength in Numbers Vanderbilt in the mid-’90s or collaborating with classmates in the Executive MBA program Durégo Lewis, BS’96, EMBA’06, finds Durégo Lewis (second from right) a decade later, he has had plenty of opportuni - with team members Lee Austin, ties to work with others toward a common goal. success through teamwork Lyn Wilson, Robin English and Sara McKissick Yet nothing has crystallized the importance of By SETH ROBERTSON those earlier experiences quite like his current Bendeavor: launching DURÉGO ™, a business that is an events facility and a future showroom for exotic cars and other luxury goods. “By myself there’s no way that I would be sitting here. This company is the result of being around smart people,” he says. “I’m only as good as the people on my team.” That team includes a couple of names famil - iar to the Owen community—Associate Dean of Executive Education Tami Fassinger and Dr. Jim Jirjis, EMBA’06, Assistant Professor of Medicine at Vanderbilt. Both serve on the com - pany’s advisory board. Lewis credits them and his other associates with helping him hone his business concept. “This company looks nothing like what I thought it’d be, and I’m proud of that. They poked holes in that original business plan— pointing out all the things that could make it weak,” he says. Earlier this year Lewis opened the doors to his 8,400-square-foot events facility in Brent - wood, Tenn. Aside from hosting wedding receptions and corporate gatherings, the space will serve, he hopes, as a “mouthpiece for what’s coming two-doors down”—the yet-to- be-opened showroom specializing in exotic cars, including Ferraris, Lamborghinis and Bentleys, exquisite jewelry and hard-to-find luxury handbags. Among the advantages of selling multiple brands, Lewis explains, is that his company can offer a more robust product selection. “Think of it like a hand,” he says. “Each finger—or brand—is fragile by itself, but when you put them together as a fist, they’re strong.” While Lewis may be referring to a specific

business model, perhaps there’s no better anal - D A N I

ogy for the team he’s assembled at DURÉGO. E L

Together they’re stronger than he would have U B O

VB I been had he decided to go it alone. S

2 S PRING 2010 V ANDERBILT B USINESS 3 FROM THE DEAN EDITOR’S MEMO

SPRING 2010 Between the Lines

DEA N J IM B RADFORD How a lesson in fundamentals gave me

EDITO R the bigger picture S ETH R OBERTSON By SETH ROBERTSON CONTRIBUTORS B RIAN B ELLINGER , J IM B RADFORD , N ELSON B RYAN (BA’73), P AMELA C OYLE , A NN D AVIS , D ANIEL D UBOIS , J ILL G ABBE , love my job as Dean, but I love my EVERAL YEARS AGO I H AD THE PRIVI - S TEVE G REEN , R ANDY H ORICK , S HARON downtime, too. That’s when I dive LEGE H OROWITZ , J ENNIFER J OHNSTON , Y URI of working for David Ingram at into reading or jump on my bike sans I M AMCHUR , J ENNY M ANDEVILLE , J ENNIFER Ingram Entertainment. During my time BlackBerry; it is a time when I can be R OBINSON , J OHN R USSELL , R OB S IMBECK , there I held different positions in a cou- alone and think. Photography is one of B ROOKE S MITH , M ARSHALL T URNBULL ,

J ple of departments, but one responsibil- I M L ARRY V AN H ORN , A MY W OLF my downtime passions as well. The cam - B ity followed me wherever I went: Every R A era forces me to see things I sometimes D DESIGNER F fall I assisted David and his executive ing a representation of how they are con - O

R ICHAEL MELTZER wouldn’t see. It helps me focus. D M T. S Steam in writing the company’s strategic nected to one another. For example, if I Some time ago my wife, Susan, and The fault line in Zion National Park ART DIRECTOR plan. It’s fair to say that David took a diagrammed this sentence, it would look I were trekking through Zion National D ONNA P RITCHETT chance me that was unexpected. A bad day gral part of our efforts to support our when he hired me; I knew very like the illustration above. The point of Park in Utah. It’s a beautiful, hilly place EXECUTIVE DIRECTOR OF little about business, much less strategic turned into a memorable experience. graduates as they make their way into a the exercise is to get a better understand - with spectacular red rock formations. I MARKETING AND COMMUNICATIONS planning, at the time. Fortunately, Likewise, in these uncertain and difficult world. As any business veteran ing of language by visualizing how the had injured my ankle climbing the day Y VONNE M ARTIN -K IDD though, David felt confident in my writ- sometimes maddening times, the knows, an economic downturn is just one pieces fit together. before, so while my wife was able to ASSOCIATE DEAN OF DEVELOPMENT ing abilities because we’d both attended At Ingram Entertainment I got a simi - students and business leaders who learn of the many challenges that will come up walk down into a deep canyon—which AND ALUMNI RELATIONS the same prep school in Nashville. lar lesson in fundamentals, only it was in to see the world in a different way, to in a career. How we adapt to those chal - I desperately wanted to photograph—I P ATRICIA M. C ARSWELL In fact, were it not for an English business, not grammar. Working on the view and embrace challenging times as lenges shows a lot about character. was stuck waiting on the side of the road EDITORIAL OFFICES: Vanderbilt University, teacher whose class we’d both taken strategic plan gave me a bigger picture of times of opportunity and new perspec - The truly successful students and in what seemed to me a very uninterest - Office of Development and Alumni Relations many years earlier, I probably wouldn’t the company and helped me see how its tive, are the ones who will find ways to alumni of Owen will continue to shape ing place. I thought my morning would Communications, PMB 407703, 2301 Vander - have been hired—nor would I be where individual departments related to one thrive. The ability to adapt and reorder the world in good times and bad by bilt Place, Nashville, TN 37240-7703, Tele - be wasted. I am today. another. In the process I came to realize our thinking is hard to teach, but it’s their versatility and willingness to see phone: (615) 322-0817, Fax: (615) 343-8547, I wasn’t too happy about my circum - If that sounds like an exaggeration, that a well-run business is not all that dif - something we can encourage and nur - things in a different way. They will look [email protected] stance that morning, but I was deter- then you never knew June Bowen. For ferent from a well-written sentence: Each ture. It is a lesson for us all, and I keep for opportunities to shift their focus and mined to make the most of what appeared PLEASE DIRECT ALUMNI INQUIRIES TO: nearly 25 years she taught English at is carefully structured and efficient, con - the photograph before me to remind question their view - to be a bad situation and began to look Office of Development and Alumni Relations, Montgomery Bell Academy and helped an sisting of only what’s necessary to get the myself of what opportunities are in front points, even in diffi - Owen Graduate School of Management, PMB around me. What was there for me to see? untold number of students become better job done. of us if we refocus and look at life cult times. That’s not 407754, 2301 Vanderbilt Place, Nashville, TN What new opportunity might I find? As writers. David counts himself among Of course my time at Ingram Enter - through a different lens. something we can 37240-7754, Telephone: (615) 322-0815, I refocused my efforts, I found a perfect [email protected] those whose lives she transformed, and so tainment was nothing compared to a for - David Ingram, who is profiled in this teach but something but unusual geological formation—one do I. What set Mrs. Bowen apart was her mal B-school education. Yet, had I not issue, is a great example of a business we hope to inspire by Vanderbilt University is committed to principles of I had studied years ago in college. A long exacting approach to the fundamentals of had that experience, I wouldn’t be nearly leader who found a way through a diffi - what we do and the equal opportunity and affirmative action. Opinions line separated two strata of rock that had expressed in Vanderbilt Business are those of the grammar. If memory serves, my first day as confident covering the Owen School in cult environment by diversifying his innovative culture that once been joined; seismic pressures had authors and do not necessarily reflect the views of the in her classroom was devoted to learning, the pages of this magazine. I still lean on entertainment company with the addition is Owen’s hallmark. Jim Bradford caused a fault and created a beautiful for - Owen School or Vanderbilt University. or should I say r elearning, what a noun is, the knowledge I learned from working on of beer distributorships. He’s been an mation. I began to photograph it and lost Vanderbilt Business magazine is published twice a year which my classmates and I dutifully the strategic plan, just as I still lean on the integral part of our Board of Visitors myself in the moment. by the Owen Graduate School of Management at copied down in our so-called “rule books.” knowledge from my school days. And in team, serving as chair since its inception. Years later I still have a photo from Vanderbilt University, 401 21st Avenue South, Over the ensuing weeks, those rule some sense my approach as editor is a con - The real-world perspective and involve - Nashville, TN 37203-9932, in cooperation with the that day in my office. It reminds me of books filled up quickly as we put the tinuation of those previous lessons. When ment of a leader such as David are criti - James W. Bradford Vanderbilt Office of Development and Alumni Rela - one of my favorite moments—a moment basics into practice diagramming working on a story, I always take a step cally important as we continue to develop Dean, Vanderbilt Owen Graduate tions Communications. when I forgot about my expectations and sentences. For those unfamiliar with dia- back, look for connections between the and expand into new growth areas. School of Management © 2010 Vanderbilt University. “Vanderbilt” and the looked at the world around me in a new gramming, it involves breaking a individual pieces, and fill in the blanks— Alumni like David have been an inte - Ralph Owen Professor of Management Vanderbilt logo are registered trademarks and service sentence into its components—subject, much as I did all those years ago at Mrs. way. It sparked a moment of creativity in marks of Vanderbilt University. predicate, clauses, etc.—and then draw- Bowen’s chalkboard. VB

4 S PRING 2010 Visit Owen online: www.owen.vanderbilt.edu Vanderbilt Business is online: www.vanderbilt.edu/magazines/vanderbilt-business/ V ANDERBILT B USINESS 5 Recent News INSIDE OWEN COMPETITION Human capital team takes first, Finance team wins, Real estate team places second I FACULTY Cooil honored I PROGRAMS Korn/Ferry partnership announced I LEADERSHIP Bradford reappointed I STUDENTS Lucas wins award M O A to real-world situations and problems. Korn/Ferry provides T

Conference held in Honolulu last fall. R O K

COMPETITION H

S P “The major thing that’s new about this to C-suite executives T Cooil was part of a research team con - K A C Y O , T

paper is our finding that share-of-wallet is of the world’s top S ducting a case study of AXA in Belgium, I I Student team wins S

T , O N

C positively associated with changes in the organizations. titled “Because Customers Want to, O K M P U H human capital case I three dimensions of commitment, espe - The alliance— O Need to or Ought to: A Longitudinal S T competition Analysis of the Impact of Commit - O cially normative commitment,” Cooil the first between the ment on Share-of-Wallet.” says. In other words, by using answers to world’s pre-eminent A TEAM OF STUDENTS FROM THE Also co-authoring the pre - specific questions about customer talent-management OWEN SCHOOL came in first place at the sentation was Cooil’s former attitudes toward the company, it is possi - firm and a graduate 2009 National MBA Human Capital student and Owen graduate ble to predict changes in investment business school— Case Competition, hosted by Vanderbilt Timothy Keiningham, habits more accurately. The data is more will leverage each last fall. The competition included teams MBA’89, Global Chief Strat - limited if one only uses information about partner’s knowledge from 10 of the top graduate schools egy Officer and Executive how satisfied customers are with different and experience to nationwide. Vice President of Ipsos Loyalty, a mar - aspects of the company’s services. cultivate the most The winning team comprised second- ket research company. Other co-authors “We’re looking at what really drives competent leaders year MBA students Joe Parise, Heidi were Bart Lariviere of Ghent University customers’ decisions about putting their for an evolving busi - Wallenhorst and Eric Bilbrey, and first- in Belgium and Lerzan Aksoy of Ford - money in a particular bank. If you just ness world, and in years Kristen Schaefer, Lindsey Goldman The Owen School, which has long ham University. look at customer satisfaction, you miss a the process, perhaps and Sarah Hultquist. offered specialized study in issues of The Frontiers in Service Conference is lot of things,” he says. For example, a set a new model for Prior to the competition, teams human and organizational performance, a leading annual conference on service bank must be attuned to outside forces, career preparation received the human capital case and were established the case competition in 2007. research and was hosted this year by the such as changes in individual salary levels that could extend given a week to analyze the issue and pre - It was the first to be solely focused on Shidler College of Business at the Univer - or family situations. across other higher pare solutions for presentation to a team human capital challenges. Students orga - sity of Hawaii. The winning presentation “The next step is transforming these education disciplines. a business curriculum just as finance or of judges, including Richard A. Kleinert, nize and lead the event each year. This best demonstrates how research is applied models into procedures that can be used The new arrangement builds on operations are, so students are ready to

D by the institution to increase its market Owen’s successful Leadership Develop - take the reins from the moment they

Kevin Knowles and Erica Volini from year’s leadership team included second- E

N share,” Cooil says. ment Program, one of only a few offered graduate,” says Jim Bradford, Dean of the

Deloitte Consulting LLP, and Corbette year students Chapin Hertel, Hana D

O to students across the full two years of Owen School. “Korn/Ferry’s commit - Doyle, EMBA’87, Lecturer in Leadership Crume and Lindsey White. N and Organizations at Vanderbilt. PROGRAMS the MBA curriculum. Through partner - ment to share its unequaled global exper - ships that, in addition to Korn/Ferry, tise in executive leadership as part of our The case, set in 2008, examined how FACULTY Google worked to avoid the pitfalls of Korn/Ferry include Hogan Assessments and an existing program confirms we’ve been on rapid growth, such as bureaucracy, slow Cooil honored for partnership Owen Coaching Network comprised of the right track. Vanderbilt MBA gradu - decision-making, lack of visibility and best practitioner professional executive coaches, the pro - ates—already cited by recruiters for their organizational inconsistency. At the com - announced gram incorporates practices and tools leadership—will now have a considerable petition kickoff, an unexpected twist to presentation used by the Fortune 500 to build the edge in the competitive global job market LAST FALL THE OWEN SCHOOL AND the case was presented. All students foundation for graduates’ lifelong leader - due to training far beyond that available KORN /F ERRY International announced received new information and were asked BRUCE COOIL , D EAN SAMUEL B. AND ship development. through any other business school.” a partnership to provide Vanderbilt MBA to reconsider their solutions in the context EVELYN R. R ICHMOND Professor of “Leadership is critical for every level of Working with the Korn/Ferry team of the current environment; teams had Management, co-authored a paper that students access to the same rigorous lead - every business today; while its mix of tan - and its proprietary executive- three hours to make any adjustments for won the Best Practitioner Presentation ership assessment and ongoing gible and intangible elements can make it development tools enables a deeper, presentation to the judges that afternoon. Award at the 2009 Frontiers in Service Bruce Cooil professional-development training challenging to teach, it should be a part of richer assessment of Vanderbilt MBA V V

6 S PRING 2010 V ANDERBILT B USINESS 7 INSIDE OWEN INSIDE OWEN

innovative programs at the school, includ - says. “Then we traveled to Austin to pre - students’ proficiencies in 15 “competitive exciting opportunity for Korn/Ferry to COMPETITION advantage” competencies. Selected from work with future business leaders at the ing the Health Care MBA and master’s sent to a panel of judges comprised of expe - among nearly 70 used by Korn/Ferry, earliest stages of their careers. By applying degrees in finance and accountancy. Also rienced practitioners in the field of real Student team wins teams from Emory, these 15 are hardest to develop, yet every tool at our disposal we can help give annual giving to Owen has increased more estate, including the key individuals who the University of are most likely to lead to high job perfor - Vanderbilt MBA students a head start finance competition than 300 percent under his leadership. led the actual deal for Goldman Sachs.” Texas, the University of North mance and promotions to leadership posi - on navigating their futures and position- The Vanderbilt team advanced to the A TEAM FROM THE OWEN SCHOOL Carolina at Chapel Hill, Rice, tions. Each falls into strategic, operating ing themselves against measures currently COMPETITION finals for the second time in two years, CAPTURED Washington University at St. or personal/interpersonal categories; the in use at a corporate level,” says Robert first place and the grand prize and won $3,000 for the second place fin - Louis, Tulane and the Uni - assessment focuses real-work training McNabb, Executive Vice President at of $5,000 on March 19 in the Rolanette Student team places ish. “Given the field of competition, we versity of South Carolina. experiences and ongoing professional Korn/ Ferry. “We look forward to the pos - and Berdon Lawrence Finance Case can be very proud of our students,” says Emory and Texas second in real estate development coaching so students can sibilities ahead for our respective organiza - Competition at Tulane’s Freeman School Jacob Sagi, Vanderbilt Financial Markets placed second and hone these critical skills and apply them tions and the global business community.” of Business. This is the third time a team competition Research Center Associate Professor of third, respectively. in future career positions. For more details about Owen’s part - from Vanderbilt has won the competition Management. The case focused on the leveraged buy - “Our partnership with the Owen nership with Korn/Ferry, see the Campus during the past five years. A TEAM OF MBA STUDENTS FROM out of Hertz from Ford Motor Co. by a School presents an unprecedented and Visit section on page 53. Team members were second-year MBA VANDERBILT ’S Owen Graduate School students Dan Bryant and Matthew Clem - consortium of three private equity firms. of Management took second place this son and first-years Scott O’Connell and The competitors were given five hours to winter in the University of Texas at Mark McDonald. They competed with read the case and prepare a PowerPoint Austin National Real Estate Challenge, DOCTORAL presentation to a panel of four judges a prestigious MBA case competition. STUDENT WINS who work in investment banking and The team members were second-year NATIONAL AWARD private equity. MBA students Peter Kleinberg, Gavin McDowell, Johnny Shoaf and Stephen LEADERSHIP Songy, and first-years Justin Albright and OODROW “W OODY ” t Tim Kilroy. A team from the University LUCAS , MBA’07 , o Bradford of California at Berkeley took first place. MD IV ’07 , a doc - h toral student at the

s reappointed Dean The fictional case was inspired by an actual case: a Goldman Sachs real estate Owen School, was p Wone of only two recipients of a Ph.D. JIM BRADFORD WAS REAPPOINTED fund’s $400 million acquisition and reha - a DEAN OF Vanderbilt Owen Graduate bilitation of the Las Vegas Hilton Hotel Trailblazer Award for 2009 from the n School of Management in December for and Casino. “We were given three days to National Black MBA Association at S a five-year term, effective July 1, 2010. work on the case and then submitted our the annual meeting in New Orleans “Jim has worked tirelessly over the past analysis and recommendations,” Songy last fall. five years to promote the Owen School to Lucas, who a variety of external constituencies,” says grew up in New Richard McCarty, Vice Chancellor for Jersey, graduated Academic Affairs and Provost, adding that from Northwestern Bradford managed the school through an University with a especially challenging period during the degree in mathe - economic downturn. “I look forward to matical methods and social sciences, working with Jim … to maintain Owen’s and worked as a minister and math upward trajectory.” tutor with at-risk children through the Urban League following graduation.

O Bradford, who is also the Ralph Owen

Jon Lehman, Associate Dean N He has also conducted health services

R Professor of Management, was first

U O

of Students, (left) with MBA S T

S research at the University of Nebraska O

E appointed in March 2005 after serving as H

candidates and fellow scooter P

L K Medical Center and is the author of C Acting Dean for nine months. During his commuters Jarod Pardue, O T

S two books, and

I A Book of Rhythm

Mark Harris, BS’03, PhD’09, , tenure as Dean, Bradford has spearheaded H S

I Insane Joy .

and Darcy Lincoln R the development and launch of several A M

8 S PRING 2010 V ANDERBILT B USINESS 9 STUDENT EXPERIENCE STUDENT EXPERIENCE Bluegrass Brands BrandWeek Louisville offers students a The next day we left Nashville and The next morning began with a coach pany the introduction of an entirely new, headed north on Interstate 65 to Brown- ride to General Electric’s Monogram and rather exciting, product in a category practitioner’s perspective on marketing Forman’s headquarters, where we were Experience Center, where the staff of in- most consumers take for granted every By BRIAN BELLINGER treated to lunch in the posh Bourbon house chefs prepared a wonderful spread day: water heaters. That’s right, I men - Street Café. (Perhaps you’re noticing a of breakfast foods, all produced in the tioned “exciting” and “water heaters” in theme here?) Following a delicious meal, center’s demonstration kitchen. The the same sentence because the new prod -

Q Chief Operating Officer Mark McCal - Monogram Experience Center is a verita - uct in question is GE’s industry-exclusive I OULD YOU RATHER BE DRINKING BOUR M - G

. lum led a discussion about the company’s ble kitchen stadium, albeit one designed hybrid electric water heater. (Now you Y E

BON ? And when you think of bourbon, S K global branding efforts and the intricacies for product demonstrations rather than can have two hybrids in your garage!) The Y does Kentucky come to mind? The of managing the growth of their more Louisville Convention & Visitors Bureau than 30 wine and spirits brands, which Branding is the fascinating art and science of creating hopes the answer to both of these ques - include the aforementioned Jack and shaping associations and perceptions. When executed tions is a resounding yes. But in case that Daniel’s, as well as Chambord Liqueur, properly, it’s an incredibly powerful tool. association between bourbon whiskey Finlandia Vodka, Herradura Tequila and Wand its hometown of Louisville, Ky., is Sonoma-Cutrer Wine. This session Iron Chef competitions. The center plays hybrid provides the same hot water to not so immediate, the bureau aims to afforded Owen students the opportunity host to GE’s training efforts to educate which we have grown so accustomed, but convince you with its branding effort, to interact with an impressive group of appliance sales professionals about the it uses a pump to draw heat from the called Bourbon Country. The idea is to marketing and human resources execu - features, benefits and proper use of the ambient air and transfers it into the water. position the city in the hearts and minds tives. They answered even our toughest company’s professional-grade Monogram It, therefore, requires only about half the of travelers and tourists the world over as questions with aplomb, leaving us with kitchen appliances. energy of a traditional water heater. the destination for food, fun and, of little doubt as to why Brown-Forman A team of marketers and engineers Sounds like a win-win, right? So where’s course, bourbon whiskey. remains an industry leader after more from GE’s Consumer and Industrial divi - the challenge? Although it’s certainly Brands are absolutely everywhere, than 139 years in business. sion then joined our group for a discus - cleaner and greener than its competitors, populating the spaces all around us, even Our branding discussion gave way to a sion centered on the marketing of the hybrid is a costlier alternative that sometimes permeating our very being. tour of the Brown-Forman design center, innovative products. Specifically we requires a certain level of awareness and From Apple to Samsung, Amazon to led by Eric Donninger, VP, Global Brand talked about the challenges that accom - understanding—no small feat in a prod - Yahoo, Titleist to TaylorMade, even Director of Design, and then into a dis - uct category that hasn’t changed much in Obama to Palin, brands are the bundle cussion about corporate social responsi - several decades. However, given the quali - of constructs and promises that Bran dWee k 200 9 OWEN GRADUATE SCHOOL OF MANAGEMENT bility, a topic of particular concern for fications and experience of GE’s team, we consumers expect to receive from a prod - one of the world’s largest wine and spirits were left convinced that hybrids are the uct or service. In Bourbon Country that producers. Later that evening we broke future—at least for water heaters. happens to be a barrelful of smooth, mel - access to three of America’s largest and Kennard, Principal of WhiteOaks Con - into smaller groups and enjoyed some of The next stop was the towering, mar - low promises. most successful companies—Brown- sulting and former Senior Vice President Brown-Forman’s fine products with the ble-lined headquarters of Humana in Branding is the fascinating art and Forman, General Electric and Humana of Global Marketing Services at Brown- brand managers themselves, talking shop downtown Louisville. Founded in 1961, science of creating and shaping associa - Inc. Orchestrated by Owen’s Executive Forman. He provided a thorough over hors d’oeuvres and cocktails at some Humana has grown to become one of the tions and perceptions. When executed Director of Marketing and Communica - overview of Brown-Forman’s history and of Louisville’s hot spots. nation’s largest publicly traded health- properly, it’s an incredibly powerful tool, tions Yvonne Martin-Kidd, along with global growth, including the rise of its Even our accommodations at the 21C benefits companies. Walking through the and artfully wielding that tool is de Marketing Operations Manager Ann flagship brand, Jack Daniel’s Tennessee Museum Hotel in downtown Louisville expansive halls from the cafeteria to the rigueur for the new generation of mar - Davis and John Hamilton, Associate Whiskey. Kennard spent the better part were an exercise in brand excellence. conference room, I couldn’t help but keters emerging from the Owen School. Director of the Career Management of his 27 years at Brown-Forman grow - Recently named by Condé Nast Traveler notice that pedometers nearly outnum - Enter “BrandWeek Louisville 2009,” Center, BrandWeek offered us a practi - ing Jack Daniel’s into one of the most magazine as the highest-ranking Ameri - bered BlackBerrys—a reassuring sign that a weeklong immersion program held last tioner’s perspective on the challenges recognized brands in the world. His can property on its 2010 Gold List of the Humana’s employees do indeed take their October to provide Owen marketing and facing marketers in three very different unique insights into the spirits industry world’s best places to stay, the 21C is business seriously on a number of levels. N

industries. gave us a better understanding of what it E brand management students with rare E nothing if not unique—part boutique And as you might expect from a com - R G

The adventure began in a very famil - takes to gain traction and maintain rele - E

V hotel and part contemporary art pany in the business of health and well- E T

iar setting: a classroom at Owen. Our vance in today’s crowded marketing S BRIAN BELLINGER is an MBA candidate museum. It’s definitely the place to stay facilitator for the week was Jack landscape. for 2011. and play in Louisville. Brian Bellinger Continued on page 50

10 S PRING 2010 V ANDERBILT B USINESS 11 BUSINESS ROUNDTABLE BUSINESS ROUNDTABLE Inside the C -suite A conversation with Chad Holliday, Chair of the Board of DuPont J O H

N JB: You have an engineering JB: Do you remember your first pro - CH: People can do so much more

R U

S background and took an early job motion at DuPont? than they’re challenged to do by their S E L

L right out of school with DuPont. job description. We often would pro - CH: No, but I remember I’d been Talk about that job. What was it? mote from within, and as a front-line working there three months, and they supervisor, I had three people who, I CH: I started here in Nashville as an brought us all into a conference room. felt, were capable of being promoted. I engineer in a plant. My job was to There were probably 40 of us. They actually assigned each one of them a make that part of the plant more effi - announced that they were going to book to read and let them report on it, cient and effective. We were making shut down a big part of the plant and which was a bit unusual. I also would Dacron. I had no intent to stay with 100 exempt people were going to lose give them different jobs. All three DuPont for a long time or any big their jobs. I thought, “Hmm, I’m the didn’t become supervisors, but they company because I thought it would shortest-service exempt person on this made major progressions. And I found be constraining. My best friend and I site, so this is probably not good it made a big difference using them to had a deal. I was going to work for DuPont for five years, and he was People can do so much more than they’re challenged going to work for GE for five years, to do by their job description. and then we were going to come back and start this company that we had as —Chad Holliday a project. I failed on my end. news.” I remember I went to my help me with the rest of the team. JB: Did he stay with GE? supervisor and asked, “Does this mean For example, we decided we would CH: No, he started the company. It I need to find a new job?” He said, publish a newsletter every night for worked. He did really well. “I don’t think so.” I said, “I can’t deal our employees. Our newsletters were with ‘I don’t think so, ’” but it all pretty popular. All of those things JB: Talk about your initial aspirations. worked out. were, I’m sure, nowhere in the Did you have some idea of what you DuPont playbook. wanted to do at DuPont? Was there a JB: What was your first job managing specific reason that you went there? people? JB: Was there a DuPont playbook? Was there something that told you Jim Bradford and Chad Holliday CH: After being an engineer for about CH: Not really. My aspirations were how to perform this job or manage In this first in a series of conversations about leadership, Dean Jim Bradford two years, I became a front-line super - nothing close to what I was lucky people? chatted with Chad Holliday Jr., Chair of the Board of DuPont and Executive enough to achieve. I saw the guy who visor in a chemical plant running in Residence at the Owen School. Holliday is Chairman of the U.S. Council was the head of my engineering group. 24/7. I think that was probably the CH: There was a two-week training He was this stately guy who had a nice most valuable experience of my life. on Competitiveness and a founding member of the International Business course for front-line supervisors that office with a couch. I thought if I Even today I think back to the three told us all the basic stuff. I’ll never for - Council. He is also the co-author of Walking the Talk , a book that details could get that before I retired, that years I was on shifts managing people get that I took the course when profes - the business case for sustainable development and corporate responsibility. would be great. I think it’s pretty hard and to the real-world experiences they sional unions were becoming popular to know what your aspirations are were dealing with. I learned a lot from on the West Coast. Afterward we were starting out. It’s just a matter of learn - them. asked, “What questions do you have?” ing from every job. JB: What are some of the things you And I said, “What are you doing to learned? make sure we don’t have a professional

12 S PRING 2010 V ANDERBILT B USINESS 13 BUSINESS ROUNDTABLE BUSINESS ROUNDTABLE

If you think that someone has a DEVELOPMENTAL

NEED , sit down and tell that person—not in a formal

way, but in an informal setting. You’re trying to HELP We’d ask, “Are they a good team class?” Going to Asia was a big shock, Sometimes you just have to take the player? What do they need to be a suc - but taking an international assignment opportunity that comes up. that person win. cess?” It’s amazing when you focus on was something that my wife and I JB: What was your role in Japan? those details. When measured against wanted to do. I think it was really all these performance parameters, we good for the family. CH: I was President for DuPont Asia beat our competition. I really think Pacific, so I was responsible for 14 union here at DuPont?” It was just an Those are very simple things, but we ees grow and develop and that they be JB: Did you volunteer for that, or did there’s something to it. countries. honest question. Well, that was not a tend to focus on the money instead. treated as a professional part of the somebody pick you? Did you let it be good question to ask. Throughout the organization no matter what their job JB: So how do you motivate people? If JB: You mentioned Singapore. known that you would take that kind JB: Did doing business in a different rest of the day, I was talking to higher is. Another good example is when I was it’s not about the money, what are the When did you first take an interna - of assignment? locale change your perspective in and higher levels of management about at a plant in Charleston, S.C. It was tional assignment, and how did that any way? carrots and sticks you use? CH: Yes, I let it be known, but I why I wanted to start a union for engi - the first big manufacturing role I come about? neers. I learned you have to pick your CH: I think people stay with an orga - had—maybe 1,000 people. The plant think people probably see those CH: I found out very quickly that questions carefully. nization because they’re getting devel - manager said, “I’ll come see you once a CH: It was in the mid-’80s. things as a lot more formal and orga - people back at corporate headquarters opment and they like the people they week. I only want to talk about the nized than they really are. I was couldn’t help very much because they JB: What did you learn about your JB: You’d been with the company for work with. When DuPont moved into development of the front-line people. shocked at first when I learned it really didn’t know the issues I was management style as you went how long? Singapore, we found we could not dif - We’ll talk about that for an hour, and would be Japan, but I had this ratio - dealing with, and also they were 7,000 through this early stage of your career? ferentiate any of our benefit plans. The that’s the only time I want to see you.” CH: I’d been there 15 years. They nale as to why they picked me. I’d miles away in a different time zone. I CH: I think it’s important to rely on government wouldn’t let us do it. At I heard that and thought, “Yeah, that’s started talking about the need for an been to Japan several times, negoti - had to make some tough decisions on others and reinforce them. There’s no first we thought it was terrible. Then until the first thing goes wrong.” Well, international assignment. I thought ated a couple of joint ventures and my own, so I grew very fast. Also I limit to what you can do if you don’t we looked at it more closely and real - I was there for three years, and those it was going to be Geneva, Switzer - built a plant there. I thought, “Oh, found that when I couldn’t speak the care who gets the credit. It really is a ized it just meant we had to provide a were the only times I ever saw him land. I told my oldest son, “You need that’s pretty logical now that I look at language in any of the countries I was team environment. And then there’s great place to work: Our supervisors one-on-one. We would meet every to take French because we’re going to it.” But the people who interviewed living in, including Australia—I the very simple act of telling people had to be very good, and we had to week. We would sit there with the Geneva.” When I came home and said, me for the job didn’t even know that couldn’t speak the language there you appreciate what they did. So many provide better development than the front-line supervisor talking about how “We’re going to Japan,” the first thing I’d done those things. It was not as either—I really had to rely on the times we forget to say thank you. next company. It’s critical that employ - we’re going to motivate Joe or Mary. he said was, “Can I drop this French organized as you might think. people around me. The key to the

14 S PRING 2010 V ANDERBILT B USINESS 15 BUSINESS ROUNDTABLE BUSINESS ROUNDTABLE

In making DECISIONS I don’t care whether it’s, say, 29.2 or 29.4. But I surround myself with people who

UNDERSTAND my biases because in that two-tenths talk frankly with them. How have you Audience: You mentioned teams and seven days a week. I think it’s impor - overcome this problem? developing people. Are there two or tant to have other things, be it family there might be something IMPORTANT that I miss. three key differentiators—whether it’s or other interests, to balance things CH: I think everybody has that prob - personal characteristics or ways in out. The same goes for getting enough lem. It has a lot to do with whether or which you approach your work—that exercise and sleep. Those may sound not that person is bringing good news. have made you as successful as you are? silly, but I find that they’re critical. whole thing is developing people and great assessment. You can do it in your biases because in that two-tenths When I was a plant manager in giving them confidence, as opposed to about three or four weeks. And then of a percent there might be something Delaware, I used to walk around the CH: One is don’t brag on yourself. Audience: In my five years of work - trying to make the call yourself. the biggest thing is, if you think that pretty important that you miss. plant early in the morning. One time I You let other people do that if they ing, I’ve always tried to identify role someone has a developmental need, sit Audience : I used to work for a large JB: Are there others in your life came upon a machine that was on fire. want to. Also don’t care who gets the models and learn from their manage - down and tell that person—not in a company. When I interviewed for the who’ve helped you understand your It was blazing up about three feet. credit because, if you don’t care, you ment skills. What are your views on formal way, but in an informal setting. job, they assessed me to determine biases? Maybe your wife? Has she been Fortunately it was handled safely, and can get a lot of things done that way. mentoring? You’re trying to help that person win. the fire brigade put it out. Later at our And as I was saying earlier, you’ve got how far I would go in the company. a good confidante? CH: Every time we’ve started a formal I generally start with the assumption morning meeting, the person responsi - to say thank you for specific reasons: What do you think of assessing the mentoring process at DuPont, it’s had that everybody on the team is going to CH: I think it’s important to keep ble for that area said, “We had a puff “This is exactly what you did that potential of employees so early in the minimal results. So it’s much better to be a winner. your spouse or a close friend up to made a big difference.” I think public process? create the environment where people recognition is very important. It’s one are encouraged to seek out others and CH: I would never do something like The key to the whole thing is developing people and giving them thing to do it one-on-one, but if you to help when sought out. In every role that. I don’t see how you can make confidence, as opposed to trying to make the call yourself. do it in front of everybody else, that I’ve ever had I’ve always looked to that assessment in the first meeting means that you’re going on the line —Chad Holliday people who were willing to help me. unless maybe by using stereotypes. We and saying, “I really do think that’s I think a lot is in your attitude. If you don’t do that at DuPont. As employ - good.” When I was in Japan, some - have the right attitude and it looks like ees gain experience and their drive and JB: You’ve talked about assessing oth - speed on what you’re doing. It’s also body came to me and said that the you want help, people will give it to desire starts to come out, we eventu - ers, but leaders have to make an assess - important to get feedback from them. administrative assistant I’d been work - you. If you act like you’re smarter ally offer them development and other ment of themselves as well. What have ing with was really mad at me. I asked JB: Some people don’t share that than the next guy, they may not be programs that signal they can go you found that you’re good at and not why, and he said that it was because information with their spouses or any - there for you. When I became CEO, higher if they keep working. I think so good at? she had a problem and was feeling bad one else. Do leaders need someone I contacted three other CEOs from labels, though, especially early on, can and I hadn’t acknowledged it. I said

CH: I think we all have certain biases. close to them who can say what they O outside the company and asked for T be detrimental. If you get a good label, O that she hadn’t told me about the H

For example, I’m a natural planner. If really think? P their advice. They all were happy to K you may think you can take it easy C problem, but his response was that I O

a crisis were to come up right now, my T do it. I picked people who were very S and get there, and you won’t. Or alter - I CH: You don’t want to put too much should have been able to recognize it , mind would want to find a solution T good but who had different styles A natively you may decide that you can’t of a load on your spouse because he or R by her demeanor. It was a very serious D

that would keep us from sinking. A from mine. I didn’t want to simply V reach that ambition. she might not have the tools to solve K point, and in retrospect, I should have Once I find that solution, I constantly reinforce what I had, but to actually those problems. But I do think it’s of smoke last night.” I said, “In addi - seen it. She didn’t say a word, but I Audience: As you move into a new want to improve it. I have to know learn from them. important to have colleagues to turn tion to the fire?” After that, word got should have been able to see that position as a leader, how do you go when to back off my desire to make to. I’ll often call colleagues at DuPont, around, and everybody told it straight. change in behavior. I really learned To see the rest of the interview with about either informally or formally something better. Another example is who may or may not be direct reports, It turned out that the people reporting from that. Every time I see a change of Chad Holliday or others in the “Inside assessing the team that you’re given? that, in making decisions, I really and say, “I’m dealing with this. What to him had not told him there was a behavior in somebody, I always try to the C-suite” series, please visit the news - How do you decide who is a good fit? don’t care whether it’s, say, 29.2 or do you think?” I never make a critical blaze under that puff of smoke. In a flag it to make sure that they’re OK, room at www.owen.vanderbilt.edu. VB 29.4. Most decisions I make are “yes CH: Go talk to the people who do the decision without running it by people situation like that you can’t tear some - and people seem to appreciate that. or no” ones: Are we going to do it, or real work in the organization, be it who know me well and who will tell body apart because they don’t know not? At DuPont I hired a chief operat - JB: How have you found a personal financial or whatever, and they’ll me what they really think. all the details. You have to allow the ing officer who cared a lot about 29.2 balance in your life? know. They’ll tell you pretty quickly. person enough time to solve the prob - or 29.4, and he would force me back JB: One problem that many CEOs Just go out in a very informal way and lem. You don’t want to jump in and CH: Most jobs I’ve had are so demand - in that direction. You should surround have is getting their direct reports to listen to them, and that will give you a take it away from them. ing. You could work 18 hours a day, yourself with people who understand

16 S PRING 2010 V ANDERBILT B USINESS 17 INFORMED OPINION INFORMED OPINION A Prescription for Better Health Care Treat health insurance like auto insurance and hold people accountable

By LARRY VAN HORN R I

C We need to get to a world where I’m stacked against me. I need my employer on Social Security to either be around or A version of this article originally K

E held individually accountable for the to hold me accountable financially for be the primary source of funding for A

appeared in Modern Healthcare S E ,

decisions that I make. my slovenly behavior in ways that are retirement. We own it individually, yet on Oct. 6, 2009. M C T If my health insurance was like auto, currently prohibited by the Employee Medicare is projected to be insolvent in

’MABALDING , MIDDLE -AGED , home or life insurance—meaning it was Retirement Income Security Act. I need 2017. The Centers for Medicare & individually underwritten, used for cata - the government to remove the preferen - Medicaid Services trustee report pro - OVERWEIGHT AMERICAN MALE . I have borderline hypertension and high choles - strophic use only, predicated on my tial tax treatment of employer-provided jects a long-run $37 trillion shortfall. terol. I don’t like to exercise, and I enjoy behavioral decisions, and the prepaid health benefits that make it rational to I’m not saving for my post-retirement eating foods with mayonnaise and cheese. consumption was instead funded out of my monthly wages after tax—would I Though treating health insurance like auto or life I am Everyman. This is not an education insurance would obviously be controversial, folks would problem. I know what I should do and be better off? There is little doubt that generally how to do it—I just can’t make the marginal effect would be in the right change their behavior in a socially desirable way. I direction. myself do it. I know the consequences of my short-run gluttonous behavior will Though treating health insurance consume too much health “insurance” health care needs in large part because negatively impact my long-run health, like auto or life insurance would obvi - and in forms that support poor con- of the fact that I have never felt owner - but like many people, knowing some- ously be controversial, folks would duct. I need my morning cocktail to be ship and personal responsibility for the thing is bad for me is insufficient to disci - change their behavior in a socially desir - more expensive than salubrious lifestyle liability. This is the true health care cri - pline my behavior. What’s worse, I am able way. Markets would form, prices choices. I need to save more of my sis—a lack of individual ownership and codependent on my health plan, and they would adjust, and demand for health money to fund my health care consump - a system that passes the buck. are enabling my unhealthy behavior services would change. tion rather than looking for ways to If we all change our behavior by exer - through the absolution of responsibility Here’s another way to think of the spend other people’s money. cising, eating right and taking responsi - for my lifestyle choices. value of basic health “maintenance” We seem comfortable with saving for bility for our actions, we’re not going to I start each day with my morning being included in a separate prepaid and funding our retirement. Few count solve the health care crisis. But it would “cocktail” of an ACE inhibitor, beta health plan. It would be be a clear step in the right direction. It is blocker and statin drug—all grossly sub - as if you packed your a step down the path toward a cultural auto insurance policy change toward individual accountabil -

sidized by my health plan. I pay the N O

X with additional insur - ity, ownership and responsibility with I

same monthly premium as every other D

A ance for oil changes, tire respect to both our dollars and our deci -

employee at my workplace with a family E D health plan. My wages have been rotations and tune-ups. sions. It is a move away from spending reduced to fund the insurance premium If those elements were other people’s money and shifting the Washington may have enacted health care reform in March, but Larry Van Horn has a different behind the scenes, so I never know how part of your auto insur - burden to others. idea for fixing the system. much was taken from me. I know the ance policy, it would be much more expensive. only way to get my money back is to quences—I’d light up my big-block V8 I would drive like a bat out of hell. The I want to do the right Associate Professor of Management consume the services and drugs. I all the way to the drive-through. Let’s insurance also would be so costly that I thing and make the Larry Van Horn teaches within the already paid for them. take it a step further. What if I wouldn’t be able to afford it. right decisions to sup - It’s ironic that I rarely speed on my purchased auto insurance the way I But unlike my auto insurance, my Health Care MBA program at the port a rational healthy VB way to my favorite fast-food restaurant. receive health insurance—priced inde - health insurance rates are not based on Owen School. lifestyle, but I need help. The consequence of speeding is real and pendently of conduct, with a true pre - my underlying lifestyle choices, which The current set of incen - immediate. I would like to speed and mium cost hidden from view that are the primary determiner of how tives and subsidies are Larry Van Horn given the opportunity—free of conse - covered all preventive maintenance? much health care I’m going to consume.

18 S PRING 2010 V ANDERBILT B USINESS 19 Vanderbilt and the Business World INSIDE BUSINESS Health Care In Safe Hands I Finance The Benefits of Bartering I Human Capital Poaching allowed? H E

C report incidents and emphasize their flamboyant Russian billionaires, he is However, medical residents often do T O FINANCE HEALTH CARE R

C roles in improving the whole system. little-known abroad. Sterligov neither

not know how to file formal reports of A S A

N Finally, Ramanujam adds, academic sails the Caribbean nor drinks in Lon -

In safe hands safety incidents, which, the researchers O

V The benefits of

A centers need to find a way to talk with don’s Mayfair district; most of the time ,

point out, are not all medical errors. M C Increasing safety reporting among (Incidents could range from patient care T hospitals about the specific behaviors bartering he lives a traditional peasant lifestyle that they would especially like to deep in the Russian countryside with his medical trainees that was not as intended to occurrences Russians turn to a longstanding tradition that were simply inconsistent with rou - encourage in their residents during rota - wife and five children. In winter their ACCORDING TO A RECENT LARGE - tine.) Further, even when residents did tional training. B Y Y URI M AMCHUR farm is accessible only by horse-drawn SAMPLE study, the extent to which know how to file formal reports, they “The findings are important in an era cart, and the nearest house is seven miles medical residents—physicians in did so at lower-than-desired rates (38 of health care reform. While the main A version of this article originally away. Sterligov’s way of life makes a training—are involved in reporting and 42 percent, respectively, within the impact of better incident reporting by appeared in National Review strong Russian Orthodox statement and safety incidents is limited, indicating a two groups surveyed). residents will be seen once they move Online on Aug. 12, 2009. amuses Moscow’s public. along in their careers and have more Sterligov made his fortune in the need for more institutional focus about On the positive side, the study found GERMAN STERLIGOV IS WELL - responsibility for safe patient care, it will 1990s running a large barter business. how, when, why and where incidents that residents frequently discussed safety KNOWN IN Moscow, but unlike also mean fewer mistakes that can be He founded a mercantile exchange should be reported. incidents with peers and some faculty Roman Abramovich, Oleg costly for patient safety and the bottom where Russians traded products they The study was conducted at a major on an informal basis, demonstrating Deripaska and other publicly medical center in the Midwest, with the awareness that even small incidents line,” he says. “Some of the reasons resi - were unable to buy or sell for cash. He intent to explore whether residents are merit attention. dents don’t report more incidents are lived the luxurious life of a billionaire well-trained in reporting safety incidents The study involved two online sur - mundane. So the proposed solutions are and owned properties in Moscow, and the hope that the findings would veys of more than 900 medical residents simple, but their long-term effects are London and Manhattan. In 2004, indicate how to do a better job in the and fellows as they rotated among five potentially profound.” after an ill-fated bid for Russia’s presi - O T V V future, says Vanderbilt’s Associate Pro - O IUSM-affiliated hospitals, including a H P K fessor of Management Rangaraj C large community hospital, a university O T S I

Ramanujam, who co-authored the study referral hospital with expertise in tertiary , E C N with Dr. Lia Logio of Indiana University I care, a well-known children’s hospital, a T N

School of Medicine (IUSM). E

VA hospital and a public county facility. L U Their findings were reported in an The study—the largest of its kind—is B article, “Medical Trainees’ Formal and also among the first to explore whether Informal Incident Reporting across a to understand and improve on incident and how residents’ reporting behaviors Five-Hospital Academic Medical Cen - reporting among medical residents. “The change as they move among hospitals.

ter,” which underlying goal of the study is to deter - Ramanujam says a key way to involve D A N I

appeared in the mine how best to train physicians to more residents in the process of improv - E L

January 2010 become more engaged from the get-go in ing patient safety is for academic train - U B O I issue of The improving patient safety,” he says. ing to emphasize and encourage such S Joint Commis - The good news is that the researchers engagement. At the same time, the sion Journal on were able to recommend a number of study found that residents’ reporting Quality and steps to improve incident reporting by behaviors also seem to be shaped by ? ? ? ?

Patient Safety . residents—from intensive role modeling unique attributes of different ? ? ? ? ?

Ramanujam ?

by faculty to regularly informing resi - hospitals—even within the same acade - ? ? ?

applauded dents about improvements resulting mic center. Therefore, individual hospi - ? ? Ramanujam IUSM’s desire from incident reporting. tals must also encourage residents to ?

20 S PRING 2010 V ANDERBILT B USINESS 21 INSIDE BUSINESS INSIDE BUSINESS

dency, Sterligov sold everything and into the exchange. The coal company longstanding tradition of barter. And may be unethical. A new research moved to the countryside. can provide a list of goods or services like their humor, it has helped them paper concludes that as long as their However, the financial crisis forced it will accept to fulfill the steel com - survive centuries of hardships. actions are not deceptive or illegal, him to put on a suit, get in a car and pany’s 1 billion ruble debt. Eventually companies that intentionally identify, find his way back to Moscow. Today, another company—or a whole chain Moscow native Yuri Mamchur is Presi - contact and offer employment to a when not milling his own flour or of companies—will bridge the gap, dent of the MBA Class of 2011. He rival firm’s employees are within the hatching his turkeys and chickens, he taking the steel and either providing founded and edits Russia Blog , directs the bounds of ethical behavior. occupies the Russian capital’s newest products or services directly to the Discovery Institute’s Real Russia Project, In “The Ethics of Lateral Hiring,” skyscraper in the trendy coal company, or bartering them and serves as the Executive Director of the which was published in the latest Business Moscow City district. He to the coal company’s eventual World Russia Forum. Ethics Quarterly , Associate Professor of rented “B” Tower’s entire 26th benefit. When all is said and done, Management Tim Gardner sug - floor and injected $50 mil - every player has made a fair © 2009 by National Review Online , Inc., 215 gests that the practice of poaching Lexington Avenue, New York, NY 10016. other companies’ employees should lion into the new business. exchange, and Sterligov’s busi - Reprinted by permission. Sterligov is an economic ness has taken 1 percent of be an accepted or even encouraged mastermind who’s helping each transaction’s value. form of business competition. HUMAN CAPITAL Russians overcome their Russia’s barter tradition Companies that declare an country’s lack of financial comes not only from Poaching allowed? ethical breach following the loss liquidity. His barter busi - medieval history but also of an employee to a rival are claim - ness model has been from the Soviet Union’s latter The ethics of lateral hiring ing ownership of employees in a way applied across Russia, par - days and the early 1990s, that hearkens back to feudalism and ticularly in Moscow. It when workers wouldn’t get IT IS GENERALLY ACCEPTED AMONG indentured servitude, says Gardner, may be the main reason why today, salaries for months or years at a time business leaders that “poaching” or who co-authored the paper with Jason despite economic turmoil, Moscow’s and had to become creative to feed hiring a competitor’s employees vio - Stansbury of Calvin College and David roads get paved and its skyscrapers con - themselves and their loved ones. Facto - lates an unwritten rule of business and Hart of Brigham Young University. tinue to rise. ries paid workers with products, and “When my colleagues and I started D E

A this project,” Gardner says, “the first Sterligov’s business model may babushkas from toy factories could be N

D I appear confusing, but it’s basically found at train stations exchanging X questions we tried to address were: O simple. If a provider of goods or ser - stuffed animals for stuffed cabbage. N Where did employers get the idea they vices cannot find a client with money, Modern Russians have witnessed owned their employees’ energies, efforts

they can offer their product in several financial defaults and were T and human capital? And why does that C M

, line of thinking continue today?”

exchange for other goods or services. prepared for another crisis. Every E U G

But since straight-up exchanges are Russian family lost its savings in 1991 O Based on a review of historical and H

E contemporary accounts of employment the exception rather than the rule, during the Soviet Union’s implosion. A H C I relationships, the authors concluded that

additional participants have to join In 1998 the banking crisis swallowed M the circle of exchanges in order to sat - the savings that Russians had accumu - modern employers don’t generally isfy everyone’s needs. Stergilov uses lated after the painful rebound of the believe they “own” their employees. But environment or whether they have employers to the detriment of the an advanced computer system to mid-1990s. by suggesting, even subtly, that lateral reaped the benefits of educational and employees. Since the employees are not match product with consumer. As for the current economic condi - hiring is unethical, employers are misus - training opportunities and owe their party to these agreements yet are Often the series of exchanges tions, common people in Russia joke ing ethics to try to prevent rivals from current employers more time. affected by them, the practice is clearly begins with a debt. When Sterligov that those who weren’t wealthy didn’t using a common, fair and competitive “Another tactic is the so-called ‘gen - unethical, the authors say. described the process to the Moscow lose anything, those who accumulated business practice, the study says. tleman’s agreement’ among firms that Gardner and his colleagues point out Times , he used a steel company’s debt billions during shady privatizations Instead, responsibility for entertain - discourage lateral hiring. That is not such agreements might also be illegal. In of 1 billion rubles to a coal company endured a fair adjustment of their for - ing or rejecting an outside offer rests much different from gas stations on the June 2009 the U.S. Department of Justice as an example. The steel company tunes, and no one became homeless with the employee in question, the same street corner agreeing to keep the opened an investigation of Google, might not have the money to pay its or starved. This black humor comes authors suggest. Only employees can price of gas high,” Gardner says. Yahoo!, Apple, Genentech and others for coal bill, but it will soon be able to naturally to Russians. Of course, the determine whether, for example, a cur - Informal agreements not to hire each allegedly agreeing not to target and recruit put 1 billion rubles’ worth of steel same could also be said about their Tim Gardner rent employer provides a collaborative others’ employees benefit the colluding each other’s employees. VB

22 S PRING 2010 V ANDERBILT B USINESS 23 DIVER SE OFF ERING David Ingram, MB A’89, takes his business in new directions

By JENNIFER JOHNSTON

Photography by JOHN RUSSELL

uring lean economic times, many business owners look for a lifeboat. In the case of David Ingram, Chairman Dand President of Ingram Entertainment Inc. (IEI), his came in the form of beer. Or beer distribution, that is. When IEI—a Nashville-based business that distributes DVDs, video games and other home entertainment products—was faced with a challenging marketplace several years ago, he decided to start an entirely new company: DBI Beverage Inc., which now operates beer distributorships in eight different California markets. In becoming Chairman of DBI, David porting Vanderbilt in a variety of ways. ject for Ingram Book Co., assessing the largely due to luck and accident of birth. worked together for some time, Lunn his father was diagnosed with cancer and wasn’t looking to jump ship and abandon In addition to their devotion to family market for booksellers to sell prerecorded “Everything was given to me,” he says. It offered David some blunt advice on a long was severely weakened by the treatment. It the home entertainment business. Instead, and civic life, the Ingrams instilled in their videocassettes. was understood that he would go into the business flight. “He said, ‘David, what do was a difficult period for the family. he was looking for a way to stay in it. children a tradition of responsibility and a “David was not only reliable and con - family business just as Bronson had. David you want to do with your life? I don’t see Toward the end, the once powerful man With his feet planted firmly in both com - strong work ethic. As the youngest of siderate to work with, but he added the and his siblings grew up working for their you getting to the top of this company was unable to speak. Still, Bronson panies, he has leveraged each one’s indi - three boys, David was well aware of the needed humor and perspective to make it father during the summers. through the finance area.’ ” appeared at board meetings “even when his vidual strengths to help the other succeed. demanding hours his father kept while through long and sometimes not-so- “Dad wanted us to have an understand - David appreciated the straight talk and hair was falling out on his suit,” David This willingness to diversify and evolve running the family business. “My father agreeable group meetings,” remembers ing of what it was like to work in a ware - Lunn’s suggestion that he would blossom remembers. He is proud that his father got has enabled David to steer through diffi - had a free pass from my mother to play Brody, Director of Retail Marketing at house or work on a towboat, if nothing else in one of the operating companies. to see him run one of the family companies cult waters and find new revenue streams golf on the weekends,” he says. “So I Sony Pictures Home Entertainment. so we could relate to people in those situa - “I had one brother in microcomputer before he died in 1995. that have done more than just keep his learned that if I wanted to see my dad, “David had the insight to utilize the tions,” he says. distribution and another in the barge busi - With Martha Ingram succeeding her ship afloat. Today IEI remains the I needed to play golf.” core strength of the book company to Upon graduating from Owen in 1989, ness, so I picked the video side, really husband as Chair and CEO of Ingram nation’s leading distributor of home he married Sarah and announced that he because I thought it was the most likely one Industries, the family had some decisions entertainment products, and DBI is one One thing I definitely gleaned from my dad is that in any business, didn’t want to work for the family business to go out of business soonest due to chang - to make: At $11 billion, it was one of the of the fastest growing companies in bever - if you’re not growing, you’re dying. anymore. “My father and I had an interest - ing technology. When it did, that would largest privately held companies in the age distribution. —David Ingram ing discussion. It got pretty tense, but I free me to be on my own,” David recalls. United States. First, they decided to take The story, however, doesn’t end there. now understand why it meant so much to He announced his intentions to his father Ingram Micro public, as it was the fastest If the ability to diversify and evolve is David’s passion for golf continues and break into a new industry, build a new him,” he says. “So I came into the family and started in sales at Ingram Entertain - growing company in the group. The important in business, David believes it’s is reflected in his office decor. With char - business and become the dominant force business under duress.” ment in 1991. world’s largest wholesale distributor of equally so for a business school, particu - acteristic modesty he notes, “I liked golf, in the industry,” she says. “Today, as David took a job as an assistant to the The next year Bronson cut a deal to buy technology products and services, Micro larly one as young and as small as Owen. and I had some ability.” That ability gar - video struggles with new distribution plat - company treasurer, Tom Lunn, because a large video distributorship, Commtron, had sales that exceeded $35 billion in Since 2006 he has served as Chair of nered him a spot on the men’s golf team forms, David is again facing the change Bronson wanted him to understand the located in Des Moines, Iowa. Though it 2007 and currently has a market cap of Owen’s Board of Visitors, which assists at Duke University, where he earned his head-on and breaking into a new distribu - banking side of the business. After they had may have made more sense to locate the $2.9 billion. Dean Jim Bradford in determining the undergraduate degree in 1985. He met tion business—beer. He’s always looking newly combined company Soon after Micro went public, David, at L L E

strategic direction of the school. In this his future wife, Sarah, when she visited for the next opportunity to future-proof S there in Iowa, Bronson moved 33, spun off Ingram Entertainment from S U R role David has been a force in encouraging the school as a prospect for the women’s his company.” the headquarters to Middle Ingram Industries. He kept a stake in N H O

Owen to chart a new, exciting cours e— golf team. Or, as David himself says, “One thing I J Tennessee, near Ingram Book Ingram Micro. “I finally had a chance to much as he has done in business. “I like to tell people she chose Duke definitely gleaned from my dad is that in Group in La Vergne. He become my own boss and do my own because she met me,” he says with a grin. any business, if you’re not growing, you’re wanted to avoid traveling for thing,” he says. Family Ties After graduation he worked on a $200 dying.” His business acumen often is com - board meetings, David says. It’s little wonder that Owen is an impor - million capital campaign in the develop - pared with his father’s, but David sees him - Still new to the video distri - On His Own tant part of David’s life. Yes, the school ment office at Duke for a couple of years, self as a more collaborative leader. bution business, David began Immediately after striking out on his own, has played a key role in his success, but partly to be near Sarah while she finished “He was a demanding guy, a perfection - by concentrating on building David’s video business got “a nice shot in his devotion to Vanderbilt was fostered her degree. He played in amateur golf ist, yet fair,” he says of his father, who’d grocery and drugstore sales. the arm,” he says, with the advent of the by his parents long before he ever earned tournaments before he says he realized, taken over the family business from Orrin “Sell-through was a new phe - DVD format. “IEI was actually the original an MBA. “I wasn’t the next Greg Norman or Jack Henry “Hank” Ingram, a member of the nomenon then,” he says. In distributor that launched the DVD format His father, E. Bronson Ingram, former Nicklaus.” Vanderbilt Board of Trust from 1952 until 1994 a shake-up at the top of for the studios in seven test markets,” he Chairman of the Vanderbilt Board of Bronson suggested business school, his death in 1963. the company led to David’s notes. The DVD format gave Hollywood Trust, built a hugely successful barge and David, who found that he missed the Another classmate, Fleet Abston, taking over the helm of Ingram the chance to resell consumers their company before branching out into quality of life in Nashville, chose Vander - MBA’89, Chief Financial Officer of Old Entertainment quite a bit favorite movies in a superior format. He lucrative areas of distribution, including bilt. Sarah was finishing up her under- Waverly Investments in Memphis, Tenn., sooner than expected. hopes some of that momentum will con - books and microcomputers. At his death graduate degree, and he knew they’d both watched David use the skills he’d learned He began by integrating the tinue with Blu-ray technology today. in 1995, Bronson left a tremendous be too busy to spend much time together from his father and take them to the next newly merged company more While file sharing and piracy have hurt legacy of giving to the university that anyway if he chose to stay at Duke for level. “David is very serious and good at fully, identifying the best the video business, the impact has not been continues under the stewardship of his business school. what he does, but at the same time, he val - employees from both compa - nearly as great as in the music business wife, Martha Rivers Ingram, who now At Owen, David demonstrated the per - ues relationships,” Abston says. “He’s got a nies. “It’s very interesting from because video file sizes are so much larger. holds his former position on the board. sonal qualities that became hallmarks of far different way of motivating people than a culture standpoint when the “What’s affected us more is the growth of David and his three siblings—brothers his success in the business world. Class - his dad. He’s different in ways that comple - small fish eats the big fish,” Wal-Mart and other retailers that deal with Orrin, BA’82, and John, MBA’86, and mate Justine Brody, MBA’89, was in his ment his abilities. He’s taken his dad’s tal - he says. studios directly,” David says. Consolida - sister, Robin Ingram Patton—have fol - study group and part of a student team ents and added to them.” DVD sales in supermarkets and drugstores account for much of Just four months after tion has decreased competition from video lowed in their parents’ footsteps by sup - that conducted a marketing research pro - David is quick to say that his success is Ingram Entertainment’s distribution business. David became President of IEI, wholesalers as well. “When I started in this

26 S PRING 2010 V ANDERBILT B USINESS 27 business in 1991, 70 percent of sales went The beer business is about market movie theaters in a recession. However, HALF-EMPTY OR HALF-FULL? through the wholesale distribution chan - share, David says. It’s important for dis - new pressures that leave out the whole- nel. Now it’s less than 10 percent,” he says. tributors to get their beers on tap handles sale distributor have made the industry Pete Coors discusses the risks and rewards The beer distribution business is differ - in bars, for example, because “bar behavior much riskier. of a consolidating beverage industry ent, David says, because a retailer, in translates into what happens in stores,” he “Whether it’s video or beer, there’s a general, must go through a wholesale dis - explains. In stores, what matters the most distinct advantage to becoming larger and tributor to buy alcohol. “So if you’re a is having prominent displays and taking spreading your fixed costs over more sales. By JENNIFER JOHNSTON by outstanding execution Wal-Mart in Northern California, you up more space in the refrigerated aisles That was a big reason why we got into with their customers. most likely have to buy Coors Light from than the competition. beer. We wanted to continue to grow and Vanderbilt Business caught up with Beer on the shelf doesn’t us,” he explains. “Picking beer distribution DBI Beverage distributes products from spread our costs between these two compa- Pete Coors, Chairman of Molson just happen without great was the culmination of a concerted effort leading beverage suppliers, including nies,” David says. Coors Brewing Co. and MillerCoors, execution. to look for an industry that would likely MillerCoors, Heineken USA (FEMSA), This arrangement allows DBI to buy after he gave a talk last fall at the undergo consolidation and play to the Crown Imports LLC (Corona), New Bel - services from IEI and share personnel, Owen School about the risks and Q: Is a downturn good or strengths of our management team.” gium Brewing Co., Sierra Nevada Brewing such as treasury, accounting and human rewards of a consolidating beverage bad for the beverage IEI already had a large distribution industry. Coors has a personal connec - industry, and what are the center in Memphis when David came …I picked the video side, really because I thought it was the most tion to Vanderbilt: His daughter long-term economic impacts? Looking to the across Crown Distributing Co., which likely one to go out of business soonest due to changing technology. Christi is married to Owen alumnus was losing more than $1 million a year Dave Ficeli, MBA’99, who is profiled future, what (that you can but had the Coors and Pabst distributing When it did, that would free me to be on my own . —David Ingram on page 48. discuss) is on the horizon rights for the area. in terms of possible new

J Q: Can you give us the 10,000-foot directions? O

Even though a competing Budweiser resources staff—in essence making both H N

view of the beverage industry?

R A: Economic downturns distributorship had 65 percent of the mar - companies better equipped to face future U S

S A: Nothing stands still. The Miller -

E are not good for anybody. ket share in Memphis, Crown was a way challenges. Many of the executives echo L L Coors joint venture and the purchase to “get a foot in the door to meet suppliers Justine Brody’s comment about David’s The beverage sector may of Anheuser-Busch by InBev (to cre - and show them what we could do with a quest to “future-proof” the business, not be more resilient than

L ate AB InBev, headquartered in Bel - L other areas of the econ - troubled company,” he says. Lessons only for his many loyal employees but E S S gium) are testimony to the rapid U omy; however brewers, R

learned along the way made David ready also for his two sons, Henry, 14, and N

H changes that have occurred in the wholesalers and retailers O

when the opportunity arose to buy Bronson, 12. J industry. The economy is taking its another beer distributorship in the San “David is building a business that he can are all impacted negatively toll as beer industry volumes are pro - Pete Coors Francisco area, where IEI already had a Co., Diageo-Guinness, Pabst Brewing Co., leave for his children if they want it,” says during a downturn. Every - jected to be down 2 percent. With few distribution presence. Pyramid Brewing Co., Boston Beer Co., Bob Webb, Executive Vice President of one is hopeful that growth will return Q: David Ingram made the comment exceptions, imports are down signifi - “We suddenly went from losing money Anchor Brewing Co., Sapporo USA, Men - Purchasing and Operations at IEI. Bob eventually, but no one knows when. that “you can’t digitize beer.” Will cantly, while craft beers continue to in Memphis to a great distributorship in docino Brewing Co., Deschutes Brewery, Geistman, IEI’s Senior Vice President of Maintaining fiscal responsibility while the beverage industry be protected see solid growth (which seems an San Francisco with people we could learn Red Bull, AriZona Beverage Co., and Crys - Sales and Marketing, adds, “I’ve been at weathering the storm is critical. for that reason from innovation that anomaly in the difficult economy). might make other industries obsolete? from and with all the supplier relation - tal Geyser. Ingram for 24 years, more than 17 with Q: What are the challenges to the A: New innovations are occurring in ships we didn’t have,” David says. The David often tells people that he got into David. He has followed his father’s Q: What factors drive the industry? industry in general? How are they the industry all the time. Product company began to expand into other areas beverage distribution because “you can’t philosophies well: Take care of your associ- What is unique to beverage distribu - different given the recent economic innovations are happening all the of California—Chico, Napa, Sacramento, digitize beer,” but tough economic times ates, and they’ll take care of your business.” tion in particular? climate? time. Beer is a perishable product, Stockton, San Jose, Truckee and Ukiah— do change beer drinkers’ habits as they tend David’s approach to business has made A: The starting point is a consistent A: The challenges don’t change with and there is a constant effort to and the Memphis distributorship eventu - to move toward cheaper brands. DBI’s others outside of his organization take product that consumers like and want. the economy. Yes, there are certain improve the brewing process to ally was sold. diverse selection has helped solve this prob - notice as well. In working with DBI Bev- Consumers won’t drink lousy beer or costs that can be cut, and the search improve the taste attributes of the Consolidation in the beer industry has lem. While some of the cheaper brands erage, Pete Coors, Chairman of Molson beer they perceive as not being consis - for increased productivity occurs at beer. However, David is right: Brew - occurred faster than expected, beginning that DBI distributes are admittedly less Coors Brewing Co. and MillerCoors, has tently up to their expectations. Adver - all levels of the distribution chain. ers still depend on natural brewing when Miller and Coors formed a U.S. profitable, the company also offers an array become well-acquainted with him. tising attracts consumers of other However, the fundamentals of high processes to produce beer. Innova - joint venture in 2007 and Anheuser- of popular craft beers, which, David says, “David is a very astute businessman,” brands to your brands and reinforces impact execution must be maintained. tions in packaging and distribution Busch teamed with a Belgian company a have good margins and sell surprisingly he says. “He’s a creative and innovative that purchase decision. Then, there is Also, there is a drive for innovation and marketing, which can benefit year later. (See sidebar on opposite page.) well in these recessionary times. thinker who is always in search of new no substitute for execution at retail. that is increasingly important to pro - from the digital revolution, are being In early 2010 Heineken sealed a $5.4 bil - As for IEI, its business has historically ways to improve and grow his business. Beer is a people business, a relation - vide consumers new reasons to select studied constantly. lion deal to buy the beer unit of FEMSA been countercyclical, with people prefer - He’s the type of distributor who under- ship business. Suppliers are rewarded your brands. in Mexico, giving the Dutch brewer a ring to rent or buy movies and stay home stands the importance of execution in the huge presence in Latin America. rather than go out to the more expensive Continued on page 52

28 S PRING 2010 V ANDERBILT B USINESS 29 CORPORATE SPOTLIGHT CORPORATE SPOTLIGHT Passport to Africa E

G school took me beyond my perspective as With this growth came interest from

Dan Proctor, MBA’83, seeks a new A M I an engineer and made me think about potential buyers. In 2008 Proctor and his E T I

challenge in Uganda S

O building sustainable business models. In partners agreed to sell Passport to a private P M

O other words, I learned to consider not equity firm for a nice sum. While many in C By SETH ROBERTSON R E

Z only what people need, but also what his shoes would have taken the opportu - T L E they’re willing to pay for.” nity to retire to a quieter, more comfort - M S

K Armed with that knowledge, Proctor able life, Proctor had no desire to slow J I O M H

;

ICTURE THIS : A MAN , WEARING N

O continued selling his billing software to down. And yet he didn’t want to continue

R T O U H AVIATOR SUNGLASSES and a pilot S S P health care providers over the next few working within the familiar confines of E K L C L headset, is behind the controls of a O

T years, all the while looking for the next the health care industry either. He had S I

single-engine prop plane flying just , E big opportunity. In the mid-’90s that bigger plans afoot—a second, U S

below the clouds in the East African Y

P opportunity came with the advent of the altogether different career on the O O country of Uganda. Only an occa - S Internet. It was the technological break - other side of the world. Psional muddy river or dirt road through he’d been waiting for. punctuates the thickly wooded “The Internet removed all of the Taking Flight countryside unfurling beneath him. communication barriers in health care Africa has had a hold on Proctor And in the passenger seat next to that I dealt with. Everybody could use ever since he first visited the conti - him are duffel bags full of money— the same medium. Now it’s taken for nent in 1998. That initial thousands of dollars in Ugandan granted, but that was a big concept at trip was to Kenya, a currency that an untold number of the time,” he says. place where his father bandits would like to get their Proctor leaned on his Vanderbilt had done missionary hands on. degree to raise the funding for the startup work. Uganda didn’t While this may read like a scene he envisioned. Not only did Owen’s enter the picture until as Proctor points out, the country has out of a Hollywood script, the cir - alumni network prove useful, but the a few years later, rebuilt considerably since then, and the cumstances were, in fact, very real. reputation of the school itself opened when Proctor’s government is on much more stable The man in the cockpit was Dan doors that might have been closed other - brother, a missionary footing now. Under current President Proctor, MBA’83, who was making wise. “Having the credibility of having himself, settled there. After traveling to Yoweri Museveni, there has been an a cash run for an air charter business been at Owen was very helpful to me in visit him, Proctor was hooked. effort to restore the rights that Amin he is in discussions with in Uganda. terms of approaching venture capitalists “Uganda has a lot going for it. It’s a revoked. Uganda is, in many ways, one The money he was transporting Proctor earned his pilot’s license last year in anticipation of starting an air charter business in Uganda. and angel investors,” he says. “They beautiful country,” he says. “And it’s fer - of the true success stories of Africa. was payroll for employees at iso - knew I’d been through a rigorous pro - tile. It’s probably one of the most fertile Proctor is hard pressed to say lated tea farms scattered through - ther a pilot nor a seasoned traveler to and then started selling it to other doc - gram, and that gave them confidence.” countries in the world.” anything negative about the country that out the country. Africa. Yet one trait had already taken tors,” he says. “Eventually I got inter - With the backing of investors, Proctor While Proctor is talking about the land he and his wife, Dee Anne, someday plan Despite the potential dangers involved root in his life: He had come to Vander - ested in the communications side of founded Passport Health Communica - itself, he could just as easily be describing to call home for six months out of the with such a business, Proctor has bilt with a taste for entrepreneurship. health care and started handling claims tions Inc., a health care information tech - its people. He says a general spirit of entre - year. Yes, he admits, there’s corruption embraced the adventure of it. He may not When the first generation of micro - over the phone. That’s when I got the nology and services company, in preneurship pervades the country. “The in Uganda. And yes, there’s risk, too. be a thrill seeker in the conventional computers hit the market in the 1970s, itch to do a startup.” Franklin, Tenn., in 1996. The company, people are very resourceful there,” he However, he says, “When you get into sense, but he is an entrepreneur. And Proctor became fascinated with their But before taking that next step, Proc - which originally built websites for health explains. “Entrepreneurs identify unmet areas where there’s some risk, that’s usu - some might argue that takes just as much potential. He studied software engineer - tor decided to enroll at Owen and round care providers, eventually found its niche needs and then find a product or service to ally where the opportunities are.” courage as any movie hero can muster— ing in college and soon found an oppor - out his education with an MBA. He selling administrative, clinical and finan - fill them. And if you look at Uganda, there In fact the main thing that gave Proc - especially in the wilds of Africa. tunity to apply his newfound skills at his admits having some ambivalence about cial tools to help those providers deter - are plenty of unmet needs.” tor pause about moving to Uganda is the father’s medical practice. Like many the decision to return to school since he mine eligibility and get paid faster. As Many of those needs stem from the same thing that gave him a reason to Technological Breakthrough physicians, his father struggled to keep was already having success writing soft - Chief Technology Officer, Proctor over - political turmoil that has afflicted the stay: the poor roadway system. Most of As a student at the Owen School in the up with the process of billing patients. ware. The experience at Vanderbilt, how - saw remarkable growth in the number of country in recent decades. Mention the roads are unpaved, he says, and some early ’80s, Proctor probably wouldn’t To Proctor, software seemed like a nat - ever, proved invaluable. transactions Passport processed annually: Uganda to most Americans, and the first are treacherous—not only because of the have been mistaken for the person ural solution. “Owen gave me the tools to look at from 92 in 1997 to approximately 130 thing that comes to mind is Idi Amin and described above; at the time he was nei - “I wrote software to do the billing problems differently,” he says. “The million a decade later. his ruthless dictatorship of the 1970s. Yet, Continued on page 52

30 S PRING 2010 V ANDERBILT B USINESS 31 Consuela Knox, MBA’04

CONSUELA KNOX ENTERED OWEN AFTER FOUR YEARS as an industrial engineer at a Delphi auto parts plant Golden in Alabama. She had expected to stay within opera - OPP ORTUNITIES tions management and perhaps shift to another indus - try, but instead she remained at Owen, where she’s now Senior Associate Director and Diversity Recruiting Manager of MBA Admissions. She also manages her Alumni who’ve found their calling at Vanderbilt department’s hiring process. At Delphi, Knox worked on cycle-time improve- By PAMELA COYLE ments and other efficiency measures, which gave her a glimpse into human resources since her ideas often As much as the Owen School is known for preparing its graduates for resulted in job losses. At Owen, she took HR electives and discovered a strong passion for the field. Strategic business careers around the globe, it may come as a surprise just how many Alignment of Human Capital was among her favorite of them work within walking distance of Management Hall. Vanderbilt courses, though Advanced Spreadsheets provided train - ing she still uses almost every day. University employs about 100 Owen alumni in various capacities—from Creative use of spreadsheets has helped Knox finance to hospital administration to development and alumni relations— streamline how data on each Owen applicant is entered, and their efforts have helped cement the university’s reputation not only as imported and updated. The school receives about 1,000 applications for 180 spots each year. “When you think a leading academic institution, but as a highly regarded employer, too. In about an admissions process, it’s an operation,” she 2009 Vanderbilt earned a top 20 ranking among national universities from says. “You want to be able to get decisions faster.” From September to November each year, Knox U.S. News & World Report and became the first university ever to be spends 50 percent of her time on the road, interviewing named among the Fortune 100 Best Companies to Work For. The Owen applicants to help build the next MBA class. Diversity alumni who work at Vanderbilt all have their own reasons for being there, is defined broadly—industry, geography, ethnicity, public/private/nonprofit, etc.—to foster a culture in as illustrated in the profiles that follow, but a common sentiment links them which students can stretch and thrive. “I like helping together: Whether newcomers or longtime veterans, they all say their Owen people, and there is a lot of fulfillment in the job,” she says. “I like working for a highly regarded university. education gave them a better appreciation for the university’s mission and There is always something new—new people, new dis - the tools to bring that mission to life. coveries. There is a never-ending search for knowledge. I am privileged to be in constant interaction with smart people who challenge me to excel.” L L E S S U R

N H O J

32 S PRING 2010 V ANDERBILT B USINESS 33 Bonnie Parker, EMBA’06

A recession, with its slipping stock market and effects on university endowments, is not an easy time to be a finan - cial voice of the Provost’s Office, but Bonnie Parker tapped into her new training immediately. “I think what I learned at Owen is not to panic when faced with seemingly overwhelming situations. With so much being thrown at you, it can be intense. You have to go with the flow and manage things,” she says. “One of the things our office tries to do is stay calm and always remain focused on the long-term vision of the university.” Vanderbilt is weathering the financial storm better than many other big universities, and Parker’s job is to lead by example and keep focused on the university’s mis - sion. As Financial Manager for Academic Affairs, she has fiscal oversight of Vanderbilt University Law School, Divinity School and Owen. The Executive MBA program improved Parker’s ability to absorb information, quickly parse it and get to the points that matter—a crucial skill, whether in the corporate world or academia. The Vanderbilt environment suits Parker well. She has been at the university since 2002, after almost a decade in the private sector, and is now working toward a master of liberal arts and science at Vanderbilt. “Business is all about the bottom line, but Vanderbilt is about so much more,” she says. “It has balance. … It feels more holistic, not dog-eat-dog corporate.” D A N I E L

D U B O I S Walt Woods, MMHealthCare’09

When Walt Woods came to Nashville 30 years ago, he was the “I’ve learned a lot by doing but didn’t have the formal Vanderbilt University Medical Center’s eighth Staff Pharmacist. training,” he says. “There have been some really good mentors At the time, the two university pharmacies existed in a single build - here, but I needed more exposure to the disciplines of business ing, which also housed the hospital, clinics, and research and admin - and management.” istration offices. Today the medical center has 90 pharmacists The program confirmed areas Woods knows well, identified working in 13 pharmacies that support patient care through the hos - situations where outside expertise makes sense, and gave him added pital and regional clinic network. confidence. He has since helped revamp how Vanderbilt University Medicine has changed in those three decades, too. Woods has handles pharmacy benefits for its employees. “We spend more than a unique vantage point: As Director of Ambulatory Pharmacy $150 million a year just to pay for our employees’ health care,” he Operations, he works in outpatient pharmacy services, which include says. “We have a huge opportunity to fulfill our mission.” three retail pharmacies and drug use at all Vanderbilt clinics. His MM Health Care class of 25 students included six doctors, Although more than half of his career at the university had been five nurses and folks in informatics, lab science, marketing and L L

in management, Woods decided it would be worthwhile to enroll in finance—an instant network of friends and expertise he can tap for E S S the inaugural class of Owen’s one-year Master of Management just such a mission. U R

N in Health Care program. He graduated this past September. H O J

34 S PRING 2010 V ANDERBILT B USINESS 35 IN THE NEWS Headlines from Around the World Corporate Antagonism Goes Public, Custom Education Bridges Gaps, Bolts from the Blue

PRESCRIPTION FOR JOB BLUES CUSTOM EDUCATION aware of any personal information Health care is one of the few BRIDGES GAPS that is on the Internet, suggests John bright spots in an otherwise When Cisco Systems Roeder , Director of MBA Admissions. dismal job picture for B- wanted to ramp up It takes seconds to search someone’s school grads, and reform its health care sales, name online, and anyone from a busi - has the potential to make the company’s ness school to a potential employer O T O

H it brighter still. Part of the account managers might do it. P K C

O reason health care attracts needed a crash course BusinessWeek , Jan. 12, 2010 T S I

, MBAs is that it’s such a in medicine to explain S S S

E mess. The impetus for health and answer questions DOCTORS SEEK B- SCHOOL AID S S A

L care reform in the first place was about the new products. Physicians, nurses, private practice G high-cost, ineffective treatments, and The company opted to train managers and hospital administrators millions of uninsured Americans. Jeff its managers through a customized are turning to business education for Freude , a second-year student in the education program from the Owen ways to analyze the slew of data now Health Care MBA program at the Owen School. The focus on such customized accessible to them, with the hope of School, believes an aging population programs has boosted revenue for improving the quality of care and requiring more care, a financially chal - Owen: Its custom programs earned the lowering costs. The health care prog- lenged Medicare system, and ever-rising school 20 percent more in 2009 than ram at the Vanderbilt Owen Graduate costs make health care one of the greatest in 2008. In addition to the sort of School of Management is mentioned. challenges facing the American people. training Cisco asked for, clients are also The Wall Street Journal , BusinessWeek, Feb. 8, 2010 attending the school to learn how to Dec. 17, 2009 D A N I

E cope with competition or grab market L

D ORPORATE NTAGONISM OLTS FROM THE LUE U C A share at a time when many of their B B B O I

S GOES PUBLIC competitors are facing challenges, says Social entrepreneurs have used the Companies facing difficult negotiations Dean Jim Bradford . Internet to help artisans from remote Betty Price, EMBA’90 are now taking the backroom debates The Wall Street Journal , Jan. 21, 2010 regions earn a living wage selling their wares all over the world. Jim Schorr , If Betty Price does her job effectively, few people inside or outside 1986, her strength was financial reporting. Earlier, at KPMG, she into the public eye, using advertising Vanderbilt take notice. She says that’s the way it should be. As was an audit manager for Vanderbilt, stationed in Kirkland Hall’s and other publicity to generate pressure. BLEMISHES ON THE APPLICATION Clinical Professor of Management, is Deputy Vice Chancellor for Finance and Controller, Price is a key then dark, moldy basement, where she recalls working “with calcu - “Customarily these kinds of decisions BusinessWeek ’s “Getting In” blog reports involved with one such project, called strategic component in the massive enterprise that is Vanderbilt, lators at card tables that wobbled.” are business decisions that we can make that some mistakes and indiscretions do Mekong Blue, which supports silk but she and her team are backstage players. “You could say that The Executive MBA program gave her the bigger picture she’d rationally,” says David Owens , Clinical not necessarily ruin an applicant’s weavers in Cambodia. His students will we are some of Vanderbilt’s most enthusiastic and dedicated been missing. “I had a narrow focus in the world of public Professor of Management. But the nar - chances of getting into a top business help draw up a marketing plan for anonymous supporters,” she says. accounting, and I knew I needed to broaden my awareness of basic rative businesses are using now “evokes school. While the background checks Mekong Blue next semester as a class Much transpires backstage, and a down economy only multi - leadership principles, marketing and operations,” she says. an emotional response,” he says. “It business schools implement usually ver - project. Schorr says similar online stores plies the challenges. Price is the go-to person for Vice Chancellor Returning to school renewed Price’s appreciation of stresses makes business a drama.” ify only the accuracy of what you have like eBay’s World of Good have had for Finance and Chief Financial Officer Brett Sweet; she oversees students face and the importance of faculty sabbaticals. She The New York Times , Jan. 25, 2010 shared with the school, corporate success appealing to consumers. the Offices of Financial Affairs, Financial Information Systems, received world-class training in strategic planning, organizational recruiters might delve deeper. Do a Nashville Public Radio , Dec. 14, 2009 and Procurement and Disbursement Services. Management of effectiveness and working toward shared goals. “There is no Google search of your name and be Vanderbilt’s $1.2 billion debt portfolio and $600 million working doubt,” she says, “I became a better boss, a better leader after capital portfolio is part of her job, too. going through the Owen School.” When Price arrived at Vanderbilt as Associate Controller in

36 S PRING 2010 V ANDERBILT B USINESS 37 T e a m e rs P la y e a m For Tom Clock, MBA’98, it all clicked as he watched his colleagues drink beer T out of a football boot and sing rugby songs with soldiers. Clock and his mates from Owen’s fledgling rugby team—a winless squad of variable composition— y e rs had carpooled to Fort Campbell, Ky., to take on a team from the 101st a Airborne. It was a match that a surrealist might have envisioned: an outfit of P l How a ragtag rugby club from Owen learned to play future MBAs that even some of its own members described as “ragtag” versus with the big boys the legendary outfit that refused to surrender Bastogne during the Battle of the Bulge. In other words, it should have been no match at all.

By RANDY HORICK lthough the Army team won, the B- recalls, “All of a sudden it became more schoolers from Vanderbilt played com - than Accounting 101 for me. I realized A petitively. Afterwards they joined the that these are the guys I’m going to victors in a universal rugby ritual of block and tackle for. I had been calling post-game beer. The 101st also intro - to set up matches all over the state just duced the Owen team to another ritual: to get us experience, but it wasn’t until singing songs with lyrics that all of the Fort Campbell that it felt bigger than participants interviewed for this story the school.” de clined to quote. Clock wasn’t alone. Over the course “It was with those [Airborne] guys of that year and beyond, other partici - that I think we crystallized our identity,” pants came to regard the rugby squad as says Clock, Founder and President of the something both transcendent of and yet consulting firm Clockwork Inc. “Hang - quintessentially Owen. And as they ing out with them, we became a team.” became surprisingly successful, in the Only a few months befo re, he would minds of many players the team also not have imagined that he’d see his became something else: a symbol for the classmates banging heads and bodies on little school that could not only take on a rugby pitch, much less tackling the the big boys of the B-school world but U.S. Army. But on that day in 1998, he take them down hard.

V ANDERBILT B USINESS 39 A Team Is Born tunity to compete in that event, Fortunately there was no shortage of Like Clock, John against schools that at the time were players who could deliver brute force. Underwood, MBA’98, better known and much larger than Walton Smith, MBA’99, as recalled by WHERE ARE THEY NOW? had played competitive Owen, was irresistible. several of his former teammates, was a rugby before arriving at “At the end of my first year,” Clock small mountain who had played on the Owen. To stay in shape recalls, “I invited all the guys from the offensive line for Brown University’s and connected with the business school to come out and run football team. Sam Brown, MS’98, game, he and Clock around. We probably had about 20 who played inside center, had also began practicing with who came. That made me think we played college football. “He was 5- Vanderbilt’s undergrad - could put together a team, and the foot-10 and weighed around 230 and uate club team, which guys were favorable to the idea of ran with passion,” Turner says. “It was competed against other competing at Duke.” observably unpleasant for opponents to SEC schools and teams throughout Anyone who liked to run and hit tackle him. In one game at the Duke the region. Underwood, Managing was invited to join, including students tournament, I could hear guys on the Director at Goldman Sachs, says soon from other Vanderbilt schools. No other team saying, ‘Oh no,’ when he after that, “Tom [Clock] came up rugby experience was necessary. Size got the ball.” with the idea of a business-school was a bonus. “They kind of shamed me But whatever benefits the Old Boys team to compete in this really cool into joining,” remembers Brent Turner, may have gained from the size of some tournament in North Carolina.” MBA’99, Executive Vice President of of their players were offset by the size The event was the MBA World Call Products for Marchex, a perfor - of their squad. With a pool of barely Cup Rugby Championship, whose mance marketing firm in Seattle. “If 20 players, few substitutes were avail - entire field involves graduate schools you had any kind of athletic ability and able to field the necessary 15 for a of business. The championship, held didn’t play, you were a wimp.” After “side,” especially when players were annually at Duke University, draws his first practice Turner was hooked. “I injured or fatigued. And fatigue teams not only from across the United enjoyed the roughhousing nature of it,” wasn’t hard to come by. “You do the States but also from Europe, Canada he says. “I liked the fact that rugby equivalent of a squat and then run for and Australia. For Clock, the oppor - involves both brute force and finesse.” 15 meters, and then you do it again D

and again for 40 minutes,” A N I E

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Under Clock’s direction, B 1 Scott Smith, 9 David Frame, O

I 9 the fledgling team practiced S 11 12 BE’92, MBA’98, BA’93, MBA’98, Operations Manager, Vice President of Finance, on Tuesday and Thursday 14 International Paper Allconnect 7 8 10 15 evenings on fields across the 2 10 13 16 Michael Butler, MBA’98, Eben Ostergaard, MBA’98, street from Vanderbilt’s Director of Supply Chain, Entrepreneur, Ebenflow.com Student Recreation Center, Hewlett-Packard 11 Matthew Harper, MBA’98, and then played games on 1 3 3 Mike Vermilion, Partner, Childress Klein 2 4 6 Saturdays. It was a significant 5 BS’95, MBA’99, Properties Finance Director, 12 Brent Turner, commitment of 5–10 hours a Victoria’s Secret MBA’99, week on top of the players’ Executive Vice President of 4 William deButts, MBA’98, Call Products, Marchex academic work. Managing Director, 13 Walton Smith, Convergent Wealth Advisors MBA’99, But for the new converts Project Manager, Advanced to the game, the effort was 5 Dave Horst, MBA’98, Performance Consulting Group Director of Finance, worth it, both as outlet and 14 Stephen Years, American Express MBA’99, opportunity. “When you Market Development Manager, 6 John Underwood, MBA’98, Sun Microsystems were stressed out from school Managing Director, y 15 Tom Clock, MBA’98, and then got slammed to the Goldman Sachs b Founder and President, ground 40 or 50 times, the g 7 Brian Heil, MBA’98, Clockwork Inc. President, SR Wood Inc. stress didn’t matter so much u 16 Alex Lunsford, We need your help identifying the other members of MBA’98, r 8 after that,” Turner says. Rob Weddle, MBA’99, Executive, SAS Institute the team. If you have more information, email us at Vice President, The [email protected] Cleaning Authority Tom Barr (left), Brent Turner and John Underwood reminisce about the Old Boys’ exploits. Continued on page 42

40 S PRING 2010 V ANDERBILT B USINESS 41 Tom Barr, MBA’98, silver whistle. Geisel enlisted local The Tournament The Haitians have a proverb: recalls a nose-breaking, blood-gushing as they progressed from Owen to an Vice President of Global businesses to provide modest financial The Old Boys almost weren’t allowed “Beyond the mountains, more moun - hit that William deButts, MBA’98, laid array of distinguished careers, the lessons Coffee at Starbucks Cof - backing and found money to help pay to compete in the Duke tournament, tains.” For Owen, beyond Cornell and on a Wharton player. Clock remembers they learned helped shape their outlooks fee Co., had never played for the trip to Duke. which was limited to 24 teams. “We Wharton came Harvard at 4 p.m. By Mike Butler, MBA’98, who played on life. rugby before trying out What meant even more than mone - had to convince them we were for then the Old Boys had been promoted wing. “Soaking wet he probably Barr has never forgotten losing for the team. For him the tary support, though, was his physical real,” Clock recalls, and the organizers to the equivalent of center court at weighed 135 pounds,” Clock says. games to local club teams whose play - experience was about presence, remembers Mike Vermilion, weren’t easily convinced. Renting a Wimbledon, a field of beautiful “Against Harvard he went up against ers were older and slower than the 20- relationships. “At the BS’95, MBA’99, Finance Director at couple of vans and rooms in a seedy Bermuda grass that was Duke’s best. this guy who easily weighed 100 somethings from business school. time it was our only Victoria’s Secret. Though a weakened hotel, the 18 players from Owen Vanderbilt had suddenly become the pounds more, but he fearlessly locked “Their experience and knowledge sports team at Owen, heart kept him from working a full arrived on Duke’s campus “looking buzz of the tournament. heads, wrapped his arms around the made them formidable opponents,” and it brought together schedule in 1998, Geisel, who had like the Bad News Bears,” Barr says. Clock recalls that Harvard had guy and took him down.” he says. “Nothing is better than pure people from different played football at Case Western Univer - The night before the competition “about 60 guys—three full sides and a Most of the founding players gradu - experience.” friend groups,” he says. sity, was more than an occasional began, there was a huge banquet for all set of backups,” compared to ated after that first season, in the spring Clock, who spent five years with The diversity, camaraderie and attendee at the club’s Saturday matches. the players. “Some of the teams wore Vanderbilt’s 18. Harvard won. of 1998. Owen fielded a team for three Accenture and another five in health commitment of the players helped Veruki remembers standing alongside crazy, coordinated costumes, especially “I really think we could have beaten more years. As an alumnus, Clock con - care before starting his own consulting make a fan of Martin Geisel, Dean of him, cheering on the team, whistle the ones from Europe, and they sang Harvard were we not so beaten up,” tinued to play—once flying back from business in 2008, says the rugby experi - the Owen School at the time. Geisel, around his neck, on one cold, nasty rowdy songs,” Vermilion says. Underwood says. “We had some guys a consulting assignment in Jakarta, ence was formative. Getting 20 diverse, who had come to Vanderbilt in 1987, day. “I’d like to think that if Marty had Playing one game on a Saturday who couldn’t even play.” Indonesia, so he could join the team mostly inexperienced guys into a com - was both a mentor and a friend to been 10 years younger and in good was rugged enough. The Duke tourna - The Old Boys’ run came to an end the students. For him, says his wife, health, he’d have been out there with ment’s first-day format involved three the next day against the London Busi - [T]he most important thing for those of us who played on Kathy, students were the most impor - them,” he says. games. For a team with only three sub - ness School. At least that’s how Turner tant part of the school. Initially for most of the players, the stitutes, it was a formula for disaster. that side is that we developed a friendship that went beyond the remembers it. Clock believes the loss “Marty was one of the guys,” says games were learning experiences as Before the 8 a.m. match against Cor - walls of Owen. Those are guys I still keep in touch with. came against a different opponent. No Peter Veruki, Owen’s Director of much as competitions. “Tom [Clock] nell, Benji Ribault, an MBA exchange written records are available, and no —Tom Clock Corporate Relations. “He’d drink and John [Underwood] would coach us student from France who played one of one remembers for sure. Even beer with students, take them to the while we were playing: ‘Run and do the forward positions, led the team after just 10 years, the for the Duke mitted team, organizing practices, old Bluegrass Inn or SATCO. He details become blurred. tournament. scheduling games and handling logistics was accessible, and there was nothing I’d like to think that if Marty [Geisel] had By the was “a leadership experience no one can pompous about him.” Geisel also been 10 years younger and in good health, he’d Enduring Memories 1999 tourna - teach you,” he says. “But the most cherished the diversity of the Owen have been out there with them . Peter Veruki — Perhaps the most ment, the Old important thing for those of us who community and readily supported enduring record is a Boys had lost their played on that side is that we developed new student initiatives, such as the this. Get in the scrum, ’ ” Barr explains. down to the pitch. “He got us going on photo of the Old Boys champion. Geisel a friendship that went beyond the walls Global Food Festival, which began “We had a lot of spunk and energy that a kind of ritual dance, elbowing and that sits in a spare bedroom died of a massive coronary of Owen. Those are guys I still keep in during his tenure. allowed us to overcome the deficiencies bumping each other, sort of like a mosh that Kathy Geisel uses as an office. Of in February of that year, after con - touch with. I don’t think you can But at first, Clock remembers, in experience.” pit,” Clock remembers. “The players all the items that decorate the suburban ducting a town hall meeting at Owen. replace that.” “Dean Geisel wasn’t totally on board Still, wins remained only an aspira - from Cornell were looking at us like, Dallas room, mostly related to hunting He took questions while seated because Underwood, who has spent the last with the idea” of a rugby club—the tion as the Old Boys took on teams ‘Who are these guys? ’” and to Nashville, the photo was Marty he didn’t have the strength to stand for 11 years at the Goldman Sachs office in first sports team at Owen that com - from across the region, like the 101st The Old Boys surprised the Ivy Geisel’s favorite. It was a gift from the the duration. “He looked terrible,” San Francisco, was in the top of his peted beyond the campus intramural Airborne, in preparation for the big Leaguers. “We devastated them,” team, and they all signed it. The photo Veruki recalls. “Brent Turner asked class at the firm. When he showed up leagues. At Clock’s request, Geisel MBA tournament at Duke. “In most Clock says. “Blew them away.” occupied a prominent spot in Geisel’s him, ‘Marty, how are you? We’re wor - for his first day of work, came down to the pitch one Saturday games we were reasonably well- Perhaps because Owen had been office at Owen until the day he died. ried about you.’ Marty’s response was, he says, “almost everyone and watched a game. Underwood matched, and in a few we did a lot bet - relegated to a small field at the tour - The whistle hangs by itself in a closet. ‘Not good. But this is my job, and I’m else was from a top- recalls that the dean looked proud ter than we thought we would,” Turner nament’s periphery, their next oppo - “Every time I open the door, I see it,” here for Owen.’ I’ll always remember ranked B-school. It was a when he saw the team sporting Van - says. Then there were games that all the nents, from Wharton, hadn’t noticed Kathy says. that.” Veruki doesn’t have to add that little intimidating, but derbilt colors, with jerseys that read players still remember, like the 76–0 how well the upstarts from Nashville Clock has a few old pictures, too, Geisel’s persevering attitude was just soon I realized I could “Owen Old Boys Rugby Club.” thrashing they received at the hands of had performed. With more than 35 from the Old Boys days. But mostly what you’d expect from a rugby coach. compete with these guys.” When he realized the commitment Nashville’s semipro club team. men available, Wharton opted to rest what the players have carried with them In a number of ways the rugby It was a lesson he’d that the students had made, financing “You’d wake up the next morning, their first-line players, presuming they are memories. Vermilion remembers a experience has stayed with the Old Boys. already learned, in a dif - the club’s gear and travels themselves, and your whole body would be stiff as would not be needed against game trip to Memphis, Tenn., when To a man, they remember the cama - ferent context, on a Geisel became not only a supporter a board,” Barr says. “I was 29 or 30. Vanderbilt. They repented of their they camped out in a cotton field near raderie and the euphoria of accomplish - rugby pitch. VB but a champion. The team made him After games I’d start thinking, ‘This is choice in the second half, but it didn’t the Mississippi River. Barr vividly ing together something improbable. And their honorary coach and gave him a why rugby is a young man’s sport. ’” matter. The Old Boys won again.

42 S PRING 2010 V ANDERBILT B USINESS 43 Alumni Updates ‘‘ CLASS AC TS’’ THE RIGHT PLACE Connie Ritter, MBA’80 I BOLD VENTURES Kathy Harris, MBA’85 I ABSORBING EXPERIENCE Mike Janes, MBA’94 I LABEL CONSCIOUS Dave Ficeli, MBA’99

THE RIGHT PLACE ’80 BOLD VENTURES ’85

HEN CONNIE and Exxon - NAWAY THE TIMING COULDN ’T development efforts across these indus - says. “So RITTER , Mobil has HAVE BEEN WORSE . Just when tries, she’s involved in NMP’s health much of our MBA’80, was given me Kathy Harris, MBA’85, was care practice, which represents half of business today trying to decide that oppor - making the jump from an 11-year the firm’s investing activity. is based on which job offer tunity,” career in investment banking to a “It’s addictive to meet energetic assessing man - to accept in she says. small venture capital firm spe- entrepreneurs and see new business agement tal - W Since anticipation of her graduation from I cializing in Internet startups, the dot- models on a daily basis,” she says. ent—just Owen, she got some career advice that 2006 Ritter com bubble burst. “I started the exact “We’re exposed to the latest and understanding she has never forgotten. In her typical has served in month that everything began to greatest technologies and health care the psyche of analytical fashion, she had created a Connie Ritter a senior unravel,” she recalls. “It was fun delivery systems being introduced. And leadership and Kathy Harris matrix with factors that she thought leadership while it lasted.” I get to dissect what works and what what it takes to should enter into her consideration, but role as the Global Planning and Devel - As uncertain as those days were, the doesn’t—what makes a management build and motivate a team.” Professor of Management Germain opment Manager for the Controller’s experience gave Harris a taste for a team effective and what doesn’t.” Beyond the courses, though, she Böer told her to throw it away. Department in Dallas. In this role she career that she has relished ever since. Harris credits Owen with giving her acknowledges that Owen has played an “He said, ‘When you find the right is responsible for both personnel Today she is a Partner at Noro-Moseley the skills to make these tough even greater role in terms of the rela - company, you’ll know it in the pit of development and strategic planning. Partners (NMP), an Atlanta-based ven - decisions. Certainly her concentration tionships she has built. “I still do busi - your stomach, ’” she recalls. “And you The two sides of the job have allowed ture capital firm that invests in early- in finance has helped, but she admits ness with people I met 25 years ago,” know what? He was absolutely correct. her to exercise different skill sets: a stage and early-growth-stage companies her emphasis in human resources man - she says. “I think that’s what the Owen I got an offer to talk with Exxon soon hands-on, operational approach for in the technology, health care and tech- agement has paid the most surprising network and reputation can bring to a after that, and I knew then that it was personnel development and a more enabled business services industries. dividends. “I didn’t appreciate how young person just starting out.” the right place for me.” thoughtful, big-picture approach for When she’s not working on the business helpful the HR focus would be,” she —Seth Robertson The right place indeed. Almost 30 strategic planning. The latter has been years later Ritter is still happily particularly gratifying for her because, employed at ExxonMobil. Over that in some sense, she has realized a life - time she has held a variety of finan - long dream in the process. cial management positions within the “When I came out of Owen, one of company, including stints with the the objectives on my resume was to do chemical and oil and gas operations in strategic planning, but at that time I Houston and a copper mining venture didn’t have a clue what that meant,” in Chile. “I know it seems old-fash - she says. “Now, when I sit in my office ioned to young people today, but one and stare out the window, I think, ‘I’m of my goals coming out of school was actually doing what I thought it was I to be able to do a lot of different wanted to do when I was 25. ’” things under one corporate umbrella, —Seth Robertson

44 S PRING 2010 V ANDERBILT B USINESS 45 “CLASS ACTS” “CLASS ACTS”

CityOwen Recap The CityOwen program is led by alumni around the country and provides value through networking opportunities, updates on the school and featured faculty or staff presentations. The program also helps strengthen the relationship between Owen and local communities in areas such as recruitment.

Atlanta Denver Aug. 14, 2009 May 7, 2009 CityOwen Atlanta was launched at this CityOwen Denver was launched at this inaugural golf outing, which included inaugural gathering. Larry Van Horn, Associate Professor of ABSORBING EXPERIENCE ’94 March 9, 2010 Management. Dean Jim Bradford joined alumni for HE INTERNET ESSENTIALLY have is an amazing product because California cocktails and hors d’oeuvres. satisfied customers will repeat and tell Jan. 21, 2010 HAS enabled instant mar - Dallas/Fort Worth keting,” says Mike Janes, all their friends. Conversely, unhappy A wine tasting, sponsored by Kimberly Sept. 22, 2009 customers, who would traditionally Jackson, MBA’01, President of JAX Vine - MBA’94, CEO and Co- CityOwen Dallas/Fort Worth was yards, was held in San Francisco. founder of FanSnap, a tell seven of their friends, now can tell launched at this inaugural gathering. Web-based business that a million people through the Tprovides an optimized search through Internet.” Feb. 4, 2010 hundreds of ticket-purchasing options His understanding of the customer Guest speaker Larry Van Horn, Associate for sports, concerts and theater events. comes from the fact that he is an Professor of Management, discussed “Historically admitted event junkie. “My experience health care reform. marketers would and my passions intersect totally, Nashville* learn about cus - which is part of what has made this so Oct. 16, 2009 tomers through much fun,” he says. “We are our own Guest speaker John Brock, Chairman and research. Now biggest supporters. There’s no better CEO of Coca-Cola Enterprises, discussed you can make way to assure quality than to eat your his company’s corporate responsibility and changes and see own dog food.” sustainability program. instantly how The importance of combining mar - Nov. 17, 2009 customers keting basics and adaptability in a Guest speaker Pete Coors, Chairman of react.” time of revolutions in technology and Mike Janes Molson Coors Brewing Company and After stints presentation is something he learned Dean Bradford and Kimberly Jackson, MBA’01 MillerCoors, discussed the risks and with FedEx, Apple and StubHub, Janes from his Owen experience. He points rewards of consolidation in the beverage helped launch FanSnap in Palo Alto, to an address that former Dean Sam Feb. 9, 2010 industry. For more details, see page 29. Calif., in 2007. The company came Richmond gave to incoming students. A winter social, also sponsored by JAX Washington, D.C. about, he says, “because we saw an “He said, ‘The first thing I want to tell Vineyards, was hosted by Jeannie and Launching soon! opportunity to improve the ticket-find - you is everything we teach you is going Kevin Kaseff, MBA’89, in Los Angeles. ing experience.” Janes is a firm believer to be obsolete five years from now. It’s If you’re interested in launching Chicago that nothing is a substitute for the mar - not about the specifics. We are here to a CityOwen group where you live, Oct. 20, 2009 keting value of a great product. teach you how to be efficient please contact Alumni Relations at Guest speaker Luke Froeb, William and “One of the recurring things in my absorbers of experience, ’” Janes (615) 322-7409. Margaret Oehmig Associate Professor of career is an incredible focus on getting recalls. “I’ll never forget that, and he Free Enterprise and Entrepreneurship, *Special thanks to First Tennessee for the product right,” he says. “The best was absolutely correct.” discussed the recent recession. sponsoring CityOwen Nashville. customer acquisition model you can —Rob Simbeck

46 S PRING 2010 V ANDERBILT B USINESS 47 Owen Connect ad 8.375-10.875:Layout 1 10/7/09 11:52 AM Page 1

“CLASS ACTS”

LABEL ’99 CONSCIOUS

F YOU SHOP FOR WINE OR SPIRITS on building both its own premium alco - distinctive reverse-sell model, which at your local supermarket or big hol brands and premium, private-label begins with retailer demand instead of box store, you very well may come brands owned by the top 60 retail pushing the products themselves. They across the handiwork of Dave chains in the country. first create a brand strategy with the Ficeli, MBA’99, in the near future. Ficeli, who serves as CEO and Vice retailer’s input and then work back - IHis Denver-based company, President of Marketing, and business wards, partnering with others to supply PL360 Beverage Partners, is focused partner Robert Falvo have developed a the alcohol and design the labels to fit

that particular strategy. As reflected in

E N

the company’s name, the idea is to N

take a 360-degree approach to the A

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“It’s not just about pretty labels. E We look at every aspect of a con - sumer’s needs and wants—beyond the demographics and scan data,” Ficeli explains. “We try to connect with very specific consumer groups in a mean - ingful, emotive way.” As much as he enjoys working in the wine and spirits industry, Ficeli is quick to dispel the romantic notions most peo - ple might associate with it. “The busi - ness I know is not a walk through the vineyard. It’s a street fight,” he says. “I’m attracted to it because it brings creativity, analytics and strategy together with execution and gut feeling. You’ve got to make a lot of decisions with limited information—stuff you learn in business school.” As for his own B-school experience, Ficeli acknowledges that he would not be enjoying his current success were it With OwenConnect—our online directory for alumni— not for the support he has received it’s easier than ever to remain an active part of this vibrant place. from former classmates and profes - sors. “I can honestly tell you,” he says, • Update and maintain your online directory profile “outside of getting married and having • Easily find classmates and alumni with the robust search functionality a child, enrolling at Owen is the best • Submit and view class notes (promotions, family news and educational updates) decision I’ve ever made.” • Access career resources (resume and job postings, career counseling and assessments) —Seth Robertson • Discover articles, podcasts, faculty research and current Owen news Dave Ficeli

Donna Wilkinson Tom Barr Vanderbilt MBA 1993 Vanderbilt MBA 1998 VP, Human Resources VP, Global Coffee Pacers Sports & Entertainment Starbucks

“CLASS ACTS”

Kudos to Our India Taiwan International Alumni Alban Cambournac, EMBA’07 Chiew Chang, MBA’92 Arvind Chandran, MBA’08 Ying-Chih (Steve) Lin, MBA’07 From Peru to Turkey to India, Owen alumni Alok Goyal, MBA’97 Yi Pei (Amy) Lu, MBA’09 around the world supported the Admissions Ajay Gupta, MBA’03 Turkey team’s efforts at more than 80 B-school fairs Gunish Jain, MBA’98 this past fall. These alumni have played an Siddartha Ladha, MBA’97 Dilek Zeren Ozler, MBA’95 important role in rallying support from other Ameet Mangat, MBA’01 Heiki Miki Gealita Greenhill Vanderbilt MBA 1996 Vanderbilt MBA 2008 Owen graduates, relaying market-specific infor - General Manager, Line Pipe Export Organizational Development Manager Manish Mudgal, MBA’03 Mars, Inc. mation that might improve recruiting strategy, JFE Steel Corporation hosting applicant gatherings, and, at times, rep - Japan resenting the program at fairs without the pres - Shigeru Aono, MBA’05 ence of an admissions officer. The Admissions Yasuhiro Arao, MBA’09 team would like to thank the following alumni Masanori Morimoto, MBA’07 for their participation and support. Kazuaki Osumi, MBA’05 Tatsuya Otsubo, MBA’09 China Satoshi Watanabe, MBA’07 Xiyuan (Cici) Chen, MSF’09 Peru Yasuhiro Arao (left), Shigeru Aono, Satoshi Cong (Lincoln) Lin, MBA’09 Marlene Marengo Silva, MBA’08 Watanabe and Tatsuya Otsubo Jin Wang, MSF’08 Yuhuan Wang, MSF’08 South Korea If you would like to volunteer your time, Haibo Zhang, MBA’08 KyuSun Lee, MBA’07 please contact the Admissions office at Fan Zheng, MSF’08 Byunggon (Marvin) Park, MBA’07 [email protected].

Jackie Shrago Henry Guy Vanderbilt MBA 1975 Vanderbilt MBA 1998 Assessment Founder President & CEO Discovery Education Modern Holdings STUDENT EXPERIENCE function, from messaging, social media and Group Director for Developing continued from page 11 and sponsorships, to B2B engagement, Brands at Brown-Forman; Paul Klein, market research and sustainability. What I General Manager of Brand and Advertis - being, Humana’s corporate cafeteria has a found most interesting, however, was ing at GE; and Toni Clem, President of decidedly healthy-eating theme to it. But Humana’s brand architecture plan for Louisville-based advertising and marketing that’s not to say that pizza, burgers and developing and sustaining their health care firm Creative Alliance. fries are nowhere to be found. Instead, the brand. The company faces the challenging On the ride home, and in the interven - cafeteria employs a pricing scheme to task of aligning around two dozen differ - ing months, I’ve reflected quite frequently encourage healthier eating decisions, ently branded initiatives—some grown on my experiences from BrandWeek. I’ve whereby, for instance, balsamic grilled from within and others acquired—with set new goals and pushed myself to look at salmon with steamed veggies and brown the Humana superbrand. my coursework in different ways, always rice is actually priced lower than the afore - Before heading home to Nashville, we seeking a new angle of approach. mentioned burger and fries combo. I made one last stop at The Green Building BrandWeek served to reinforce the vital How will you make a difference? found the application of the carrot-versus- in NuLu, Louisville’s arts district. Slated to importance and value of creating meaning - stick paradigm to be fitting in the cafeteria become the first commercial building in ful—even profound—brand associations The alumni above have chosen to add value to Owen in meaningful ways that best fit their context; schools, universities and other Louisville to attain the U.S. Green Build - with consumers. The three companies we needs. Whether you choose to help recruit new students, hire Owen graduates, speak to corporations would do well to emulate ing Council’s LEED Platinum certifica - visited in Louisville offered excellent exam - classes, mentor students, lead a local alumni chapter, host an alumni event, support the Humana’s system. tion, The Green Building hosted our ples of how to build and maintain power - school financially or attend a class reunion, your active connection to Owen ensures the Humana’s Corporate Manager for group for a presentation on the branding ful brands while dealing with the unique school’s continued success and growth. Learn more about how you can make a difference Consumer Marketing William Hambleton of Louisville by Brett Jeffreys of Red7e, the challenges of their specific industries and at owenalumni.com. facilitated the afternoon’s discussion, firm responsible for implementing the customer targets. which featured presentations on no fewer Bourbon Country initiative. Later that So remember, the next time you find than 10 different areas of the company’s morning a panel presentation on the art of yourself with a lesser beverage in hand, you marketing and branding efforts. It was a client/agency relationships rounded out could be drinking bourbon. And when fascinating afternoon which explored the week. Facilitated by Martin-Kidd, the you think bourbon, think Kentucky. VB nearly every possible facet of the marketing panel featured Ann Stickler, Vice President owenalumni.com

© 2010 Vanderbilt Owen Graduate School of Management Vanderbilt is an equal opportunity, affirmative action university. 50 S PRING 2010 CAMPUS VISIT Q&A with an DIVERSE OFFERING In its current state the board the school’s success.” continued from page 28 comprises 36 members representing a David is just as quick to return the Owen Staff Member range of industries, from health care to praise. “I think Jim is the best choice we Melinda Allen, Executive Director of the marketplace and provides the leadership finance to manufacturing. While some, could have possibly made” as Dean, he and motivation that is required in the like David, are Owen alumni, a signifi - says. “He comes from a business back- Leadership Development Program beer business.” cant number are not. The idea is to bring ground, so he can relate to people together those individuals who are best who’ve gone to business school and are Back to School equipped to advise the school, regardless out doing business. At the same time, Melinda Allen joined the Owen School Q.What sets Owen’s Leadership break leaders. Based on this research, The qualities that Pete Coors describes are of their personal ties to it. Jim has a true respect for business-teach - in 2002 as Director of the Career Man - Development Program apart from Owen has built a model that focuses on precisely the reason why Jim Bradford Under David’s leadership the board ing professionals.” agement Center. In 2006 she transi - similar programs at other business 15 competencies that give our students a looked to David to lead the school’s has helped Bradford launch several inno - As Chair of the Board of Visitors, tioned to the role of Executive Director schools? competitive advantage. We are also able Board of Visitors. When Bradford became vative programs at Owen, including the David often finds himself looking ahead, of the Leadership Development Program. to leverage the Korn/Ferry relationship Dean in 2005, one of his first initiatives Health Care MBA, the Master of Man - trying to project where the Owen School Prior to Owen she spent five years in A.Ours is different in that it mirrors to provide students the tools they need. was to establish the board as a strategic agement in Health Care, the Master of will be several years from now. When he career management at the Goizueta best-in-class, high-potential programs at We believe that successful leaders must partner to the school, which offers insights Science in Finance, the Master of considers Bradford’s vision and leader - Business School at Emory University, Fortune 100 companies. We’ve built a be able to do three things: create the on curricular issues in relation to the Accountancy, and Accelerator—a 30-day ship, the top-notch faculty and student two years as a Staffing Manager for rigorous, highly individualized program new and different, figure out how to get needs of business and opens new doors for summer program for highly qualified body, and an ever-expanding alumni the Atlanta Committee for the Olympic that helps identify and grow each stu - it done, and engage others to help get it mentoring and career opportunities. undergraduates. A separate Health Care base, he is confident that the school is Games, and four years with The dent’s unique leadership potential. done. This requires that they have profi - “The Board of Visitors is an essential Advisory Board and Real Estate Advisory headed in the right direction. “I think National Kidney Foundation of Georgia Development planning is a key piece of ciency in three different skill areas: component in ensuring that Owen is pro - Board also have provided critical perspec - the Owen School gets better every year,” in various marketing, event manage- the MBA experience at Owen, and we strategic, operating, and personal and viding the most relevant, meaningful tive for Bradford in these endeavors. he says. ment and development roles. Allen provide the resources to help students interpersonal. education for the next generation of busi - “David’s leadership is exceptional. Of course, the same could also be said holds a master of science in human strengthen their areas of need or inter - ness leaders,” Bradford says. “That means He is perhaps best described as an about David himself and the companies resource development from Georgia est. For example, thanks to an exclusive Q.What opportunities exist for combining the real-world business per - enabler,” Bradford says. “He embodies he runs. Like the school, Ingram Enter - State University. partnership with Hogan Assessment Sys - alumni who want to get involved with spective of these accomplished individu - the Owen experience by supporting, tainment and DBI Beverage continue to tems, each student completes the Lead - the program? als with the cutting-edge research of our encouraging and questioning. He keeps evolve and adapt, growing stronger in ership Forecast Series, an assessment renowned faculty.” us focused on what’s most important for the process. VB tool used by 50 percent of Fortune 500 A.There are always opportunities for companies to help individuals fully alumni to get involved with the pro - understand their own unique perfor - gram. Some alumni have already partici - pated as guest speakers, industry experts, CORPORATE SPOTLIGHT solution. The only problem was he didn’t lost on Proctor that he’s now exploring, in mance capabilities, challenges and dri - continued from page 31 design partners and panelists. We are know how to fly a plane. some sense, what he used to specialize in at vers. The result is that our students have also happy to be a resource to our difficult terrain but also because of the Not to be deterred, Proctor began tak - Passport: helping people get paid faster. the opportunity to get a head start with alumni. For example we have built a likelihood of encountering bandits along ing flying lessons back in Nashville and Only this time around, the process is not staying power. The development they’re network of executive coaches who work isolated stretches. “It’s very unpleasant to earned his pilot’s license soon thereafter. nearly so technical, nor quite as fast. receiving now is typically reserved for with our students and corporate clients. drive on the roads,” he says. “I was con - The experience confirmed for him that he Unlike an instantaneous transaction over top-level executives in the later stages of If you are in the market for a coach cerned that, when I brought my wife over had chosen the right business concept. “I the Internet, each delivery by plane their careers. yourself, or your business is exploring for the first time, she was going to like had no idea flying would be so much fun,” requires more effort and personal atten - coaching as a development tool, we can everything except the roads.” he says. “It’s beautiful being up there in tion. And that’s perhaps why it’s all the Melinda Allen Q.How has the recently announced help! Whether you want to learn more, While pondering different business the sky.” Meanwhile Proctor also began more gratifying for him. As in his earlier partnership with Korn/Ferry Interna - be more involved, or take advantage of ideas that might work in Uganda, it research into the aviation industry in days, Proctor is still stretching his entre - tional impacted the program? Owen as a resource, don’t hesitate to occurred to him that there was an unmet Uganda and the requirements to live and preneurial skills and filling unmet needs, A.The partnership, which is the first of contact us. We’re passionate about what need for the safe transportation of goods, work there. The business concept, as it has but now he gets to see firsthand how he is its kind between a graduate business we do and are always happy to answer such as cash, which is by far the payment since taken shape, will provide safe trans - making a difference. school and the top talent management questions or talk more about leadership method of choice there. Why not bypass port for people, including tourists visiting “Time spent in Uganda is rewarding firm, allows us to take advantage of development at Owen. the roads altogether, he thought, and just the country, and cargo, like the payroll he because I’m helping make people’s lives Korn/Ferry’s 20-plus years of research fly over them instead? Starting an air char - delivered on that cash run. easier,” he says. “That’s what I enjoy about regarding the competencies that make or ter business seemed like a simple enough In the case of the latter, the irony is not it the most.” VB

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“Over the past J

O 30 years,

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S my life has been enriched by the many

L L management, strategy and other de wonderful students and faculty who make rigueur business subjects. But the big question is how we prepare graduates up the Owen community. This scholarship for the complex, sometimes ambiguous environments they’ll encounter after honors my departed wife, my students, their studies. It’s increasingly clear that and all the people who make Owen graduates who have not only analytical ability but also perspective and wisdom such a special place.” will win the day. We work hard to help our students gain the perspective that leads to com - —Germain Böer plex problem-solving skills. We offer classes on everything from teamwork and leadership to negotiations, decision As a Professor of Management at the Vanderbilt Owen theory and cross-border, cross-cultural Graduate School of Management, Germain Böer puts business methodology. Is that enough? I his financial and entrepreneurship knowledge to the don’t think so. Students read one book per mod and then meet to discuss their favorite passages. I believe that people with a broad test everyday. He is proud to be a part of the Owen base of education and knowledge make quintessential ugly American, overreact - Factory Girls , The Colossal Failure of team and thankful for the opportunity it has given the best employees and the strongest ing to an insult. I thought it was telling Common Sense and River Town , it has to both him and his students. leaders. We need to help them find that the author would share such a less- been a highly successful experiment. intellectual balance while focusing on a than-flattering story about himself. My I’ve been impressed at how in dis - Because Vanderbilt has played such an important particular business discipline. B-school students have liked it, too, and I’ve cussing the points of view and ideas role in his life, Professor Böer has decided to name students, like busy professionals, can get found that each person’s experience propounded by various authors, the Owen the beneficiary of his IRA, which will fund too focused and specialized. In the with the book—with any book—is dif - students have gained insight into com - the Elinor Böer Scholarship. You can leave a legacy Dean’s Book Club they get to supple - ferent. Sharing those differences adds plex social, business and life problems. to Owen as well with a tax-effective planned gift. ment their studies with reading that richness to our discussions. You could argue that teaching perspec - The wide array of planned giving methods include: may help them deepen their under - We read one book in each mod, tive isn’t a business school’s respon- standing of history, world politics, reli - which is our half-semester academic sibility, but I’d disagree. If gaining • naming Owen as beneficiary of your IRA gion and societal conflicts. unit. I have found the club to be very experience through extracurricular read - or life insurance policy I don’t look just for business books self-selective, attracting students who ing improves our students’ sense of • a bequest or books that promote one main idea are motivated enough and organized understanding, their common sense • a life income gift (support Owen with hundreds of examples and anec - enough to get all their work done and and their judgment, then we’ve dotes. We read works that challenge us want to read books for pleasure on the achieved our goal. and receive income in return) to think of the world in different ways. side. During our discussions, we pick We should all force ourselves into • a gift of real estate We debate the issues they raise. If we favorite passages. We criticize. We ask reading and seeing and doing things If you would like to join Professor Böer in get uncomfortable in the process, so the ultimate marketing question: outside our common experience. That’s much the better. Would you recommend this book? the message I want my students to take supporting Vanderbilt through a planned A great example is River Town: Two Sometimes students tell me they didn’t away from this experience. And here’s a gift, please contact Katie Robinson in Years on the Yangtze by Peter Hessler. A like a book, but it changed their way of little secret that I haven’t been able to Vanderbilt’s Office of Planned Giving at young Ivy League graduate goes to a looking at something. Ultimately that’s hide from them: It is pure fun. Reading (615) 343-3858 or (888) 758-1999 or coal mining town in China for a couple our goal. is a joy, and discussing a text with fellow [email protected]. of years’ teaching experience. He ends From Hot, Flat & Crowded , A Post- seekers, no matter what the differences up finding himself behaving as the American World and Black Swan , to are within a group, is exhilarating. VB

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Mary Duvanich Ravi S. Chari, M.D. Vanderbilt MM Health Care 2009 Vanderbilt Executive MBA 2008 Vanderbilt Medical Center BOTTOM LINE Centennial Medical Center B-school Book Club Broadening students’ thinking through nonbusiness reading

By JIM BRADFORD

Josh Nickols, PhD Zahra MirAfzali, PhD J

O Vanderbilt MBA 2006 Vanderbilt MBA 2005 H Insight Genetics Encapsula NanoSciences A version of this article originally N

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appeared in Forbes on Dec. 21, 2009. S S E L L SABUSINESS -SCHOOL DEAN —the hardest job I’ve ever had—I find that complex questions keep me up at night and rattle around my brain while I’m hanging in the sky on a long flight. I don’t mean the kinds of clear-cut matters that come up in finance or oper - Aations classes, but rather issues of work - ing with and aligning groups whose motivations and needs differ dramati - LizPavlicMarkus Tim Gary cally and sometimes conflict. In business Vanderbilt MBA 2008 Vanderbilt Executive MBA 2006 Johnson & Johnson BlueCross BlueShield TN everyone in an organization theoretically works toward a clear, shared goal. In life, including my experience running a busi - ness school, we often face more difficult and nuanced challenges that require deeper consideration and understanding of the human condition. When I’m trying to sort out that kind of thorny issue, I’m glad I can Bradford started the book club in an effort to deepen students’ understanding of history, world draw on a world view that has been politics, religion and societal conflicts. broadened by more than 30 years of corporate life, work and travel—and by selves as part of the world community? opportunities to meet with many of the my passionate avocations of music, art Shouldn’t we, as their educators, encour - world’s great business and nonprofit Health Care. Business. Vanderbilt. and reading. I hope that the perspective age them to delve into books, including leaders, with executives and entrepre - I’ve developed leads me to more non-business books, that open their neurs of all kinds. When we discuss Like nowhere else, we combined a world-class business school, world-class medical center and thoughtful decision-making. minds? What if we gave Vanderbilt stu - their particular industries or enterprises, world-class health care community to bring you programs in health care business that are a world apart. That’s why, whenever I have the dents a place to bounce around the ideas the conversation often turns to the pre - chance, I turn on the reading light and that would raise? Could we get them to paredness of America’s business-school Health Care MBA • Executive MBA • MD/MBA • PhD/MBA • Master of Mgmt. in Health Care dive into books that challenge my intel - read books not just for credit but for the graduates for work life. Employers Advanced Certificate in Health Care Management • Custom Programs lectual understanding. It was during one pure joy of learning? rightly assume that excellent business of those plane-ride intellectual inquiries Such were the humble beginnings of programs attract candidates who have that another kind of light bulb came on: the Dean’s Book Club, a discussion of the intellectual DNA to study and really Shouldn’t business students do the same? current books that’s open to all interested learn. The best, like Vanderbilt, provide How might we pull them back from participants at Vanderbilt University’s deep understanding in finance, econom - their intense concentration on business Owen Graduate School of Management. ics, accounting, marketing, operations to look at the larger world, and at them - In my role as Dean, I get fabulous Continued on page 54 HealthCareAtOwen.com

© 2010 Vanderbilt Owen Graduate School of Management Vanderbilt is an equal opportunity, affirmative action university. 56 S PRING 2010 VANDERBILT UNIVERSITY Non-proﬁt Org. Owen Graduate School of Management U.S. Postage PMB 407703 PAID 2301 Vanderbilt Place Nashville, TN Nashville, TN 37240-7703 Permit No. 1460

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