KELLOGG SCHOOL OF MANAGEMENT AT NORTHWESTERN UNIVERSITY Kellogg School of Management Northwestern University 2001 Sheridan Road Evanston, IL 60208-2001 KELLOGG 14 BACK FROM THE BRINK New book delves into rebranding ailing firms Nation Building SPRING/SUMMER 2014 KELLOGG SCHOOL OF MANAGEMENT AT NORTHWESTERN UNIVERSITY NORTHWESTERN AT SCHOOL OF MANAGEMENT 2014 KELLOGG SPRING/SUMMER 18 WHAT ARMY? THIS ARMY Cesar Purisima ’83 helps the Companies tap into the Philippines reconstruct its economy power of crowds following a super typhoon and 44 SALVAGE LAW decades of corruption New policies may help the housing market recover Spring/Summer 2014 VOL. 21 ISSUE 2 | FOOTPRINT | SQUAW VALLEY It’s one thing to call a mountain resort “world-class;” it’s another to be a prov- ing ground for the world’s finest athletes. Squaw Valley, home of the 1960 Winter Olympics, is controlled by affiliates of KSL Capital Partners, LLC, a private equity firm co-founded in 2005 by Michael Shannon ’83. Since acquiring Squaw Valley, KSL has made extensive improvements to enhance the guest experience, including installing new high- speed chairlifts, creating new terrain parks, expanding snowmaking capacity and adding new amenities in the base village. KSL, which owns and operates hotel and resort properties across the United States and United Kingdom, recently announced plans to invest more than $50 million in the Village at Squaw Valley, including creating new lodg- ing options, restoring Squaw Creek, preserving key Olympic buildings and developing additional family services and amenities such as the Mountain Adventure Center. PHOTO BY KEOKI FLAGG [PROVIDERS] MUST TAKE ALUMNI STATISTICS A STEP BACK AND LOOK AT acquisitions more appealing because it can be easier to handle more patients, and better meet ACA requirements that create a THE ENTIRE SPECTRUM OF more comprehensive approach. 7% “Providers are coming to appreciate that they need to be CARE THAT A PATIENT IS accountable for the entire range of services provided to their HOSPITAL patients, and not just the small area that a patient is given in any RECEIVING. one visit,” says Dafny. | IN THIS ISSUE | “It must take a step back and look at the entire spectrum of Leemore Dafny, Professor of Management and Strategy and former Deputy Director of Health Care KELLOGG INITIATIVES: Public-Private Interface care that a patient is receiving, beginning with prevention and and Antitrust for the Federal Trade Commission’s ending with treatment,” she says. Governments. Corporations. Advocacy Groups. These are public and private entities that work Bureau of Economics. together — by choice or obligation — to lead global change while capitalizing on investment. It’s all about the double bottom line. The question is: Who’s the leader? Businesses 2,493 1141 KELLOGG ALUMNI WORKING ALUMNI WORKING For the most part, large employers have not yet seen dramatic IN THE HEALTH CARE IN Health care/ changes because they already offer their full-time employees After battling months of confusion about the Affordable INDUSTRY HOSPITALS health care. Also, the deadline for businesses to tell the federal Care Act, small business owners are now starting to understand COVER STORY government the details of the coverage they offer employees has the law better and “are really doing the math and evaluating been pushed back a year to 2015. what works best for their business,” Markowitz says. Nation Building Some big companies such as Target and Trader Joe’s have Some have signed up for a plan to offer their employees 32 Cesar Purisima ’83 helps the said they will not offer their part-time employees health insur- health insurance. Others have decided to cut full-time employ- Philippines reconstruct its economy ance, allowing those employees to seek coverage through the ees’ hours to part-time, making the employees eligible for the following a super typhoon and decades of corruption exchanges. individual exchanges. But most businesses are still trying to sort It’s different for small businesses. Businesses that employ through their options. $ fewer than 50 employees can purchase plans through the Small Pepper Crutcher, a partner at the law firm Balch & Business Health Options Program, or SHOP. However, the Bingham advises insurance companies on the ACA. He says one launch of an online marketplace for SHOP, originally set for good thing about the delays is that they buy businesses more October 2013, has been delayed until November 2014. time. 70+ 438 Until the SHOP online marketplace launches, these busi- “This is really complicated stuff,” Crutcher says. “If you SMALL BUSINESSES ALUMNI IN C-LEVEL nesses can buy SHOP plans through offline means they’ve used really want to understand it and make the best decision for your OWNED OR FOUNDED POSITIONS WITHIN THE in the past, such as agents, brokers or the issuers themselves, company, it’s not going to take days. It’s not going to take weeks. BY KELLOGG ALUMNI HEALTH CARE INDUSTRY says Marianne Markowitz, Chicago regional administrator of It’s going to take months and maybe even more.” Includes C-level titles, as well the Small Business Association. as Chair, hospital presidents, Individuals some SVP/EVP titles (where Despite pushes by the Obama administration and sev- C-suite was mentioned) and Managing Director/Managing eral nonprofits, Joel I. Shalowitz, MD, clinical professor of Partner/Managing Principal. health enterprise management director of the Health Industry Management Program at Kellogg and a professor of preventive medicine at Northwestern’s Feinberg School of Medicine, says WE’VE GOT TO SET ASIDE it’s still unclear how many Americans are actually insured. The government is only releasing numbers of people who WHETHER THE EXCHANGES have selected a plan through the marketplace, but under the law, insurance coverage does not take effect until after the person 28 38 44 WORK PERFECTLY OR NOT. pays a premium. The Obama administration has not released those numbers. Waiting Room Fueling Global Growth Salvage Law THAT TRAIN HAS LEFT THE But any gap between those numbers might not matter in Trends are emerging in Kellogg alumni help lead the charge How recent changes in credit and Obamacare’s1019 first months in infrastructure initiatives around mortgage policy can help the STATION. HEALTH CARE IS the end, Saxena says. The Affordable Care Act is still the law of ALUMNI WORKING IN the world 104housing market recover the land. PHARMACEUTICAL/ ALUMNI WORKING “We’ve got to set aside whether the exchanges work per- BIOTECH/HEALTH IN INSURANCE UNAFFORDABLE — WE’VE fectly or not,” says Saxena. “That train has left the station. PRODUCTS COMPANIES Health care is unaffordable — we’ve known it for years. We can’t 2 KELLOGG SPRING/SUMMER 2014 KNOWN IT FOR YEARS. put that burden on our employees, citizens, government. All of Sanjay Saxena ’99, Partner and Managing Director, this [reform] will continue because there’s not an alternative to Boston Consulting Group it moving forward.” K 40 KELLOGG SPRING/SUMMER 2014 KELLOGGMAGAZINE.COM 41 INSIDE: SÃO PAULO BRAVE THINKERS 21 Building Brazilian Businesses 12 Scott Dorsey ’99 26 Jocelyn Early-stage VC fund Warehouse Investimentos Cortez-Young ’07 stakes a claim 42 Sam Shank ’04 48 Jane Western ’85 Banking On It Vicente Nogueira ’94 leverages connections to drive investment Interior Evolution Mobly is changing the way Brazilians buy furniture Kellogg Opens a New Satellite Office HEADLINES 6 Investing in Kellogg’s Future Kellogg's associate dean of development raises donations 7 Kellogg Expands Premier Executive MBA Global Network KELLOGG INITIATIVES THE ASK 18 The Wisdom of Crowds 5 Failure is Not an Option Brian Uzzi discusses what makes ‘the many’ Alumni weigh in on ‘failing fast’ more useful than ‘the few’ EXPERT OPINION MY IDEA 20 Think Big 72 True Corrections It’s managers who maximize the power JES turns lockups into learning centers of big data 51 ALUMNI WIRE Dean Editor ©2014 Northwestern University. Sally Blount Glenn Jeffers All rights reserved. Publications Agreement No. 40031786. Global Chief Marketing and Associate Editor Postmaster: Send address changes Paul Dailing Engagement Officer to: Northwestern University, 633 Clark Tim Simonds Street, Evanston, IL 60208-1114 Kellogg School of Management Editorial Coordinator Northwestern University Managing Director, Fred Schmalz Kellogg (USPS 009-272) is published 2001 Sheridan Road Marketing Strategy & Design by Northwestern University/Kellogg Evanston, IL 60208-2001 Claire Lundin Kellogg Magazine School of Management, 633 Clark Street, Lead Designer Evanston, IL 60208-1114, and is issued P: 847.491.3300 Managing Director, Kay Meyer twice during the year: Spring/Summer [email protected] Digital Marketing and Fall/Winter. Margaret Douglas Photo Editor Rebekah Raleigh Chief Communications Officer Amanda Samuels Senior Graphic Designer Carol Forsythe Director, Content Strategy Mary-Jo Lipman Web Manager Andrew Walker Spring/Summer 2014 Associate Director, Design VOLUME 21 ISSUE 2 Lindsay Anderson KELLOGGMAGAZINE.COM 3 | GUEST COLUMN | IN RECENT DECADES, CORPORATIONS HAVE REPLACED STATES AS THE LEADING AGENTS FOR GLOBAL CHANGE. The rise of social media, globally integrated supply chains and the increasingly important role of NGOs have further acceler- ated this trend of private involvement in the public realm. While navigating the public-private interface remains fraught with difficulties, business leaders have learned how to recognize and embrace these challenges. These are the issues the Kellogg Public-Private Initiative seeks to address. In short, the initiative is for every business that wants to interact with the social and political environment — or has to. Why is this conversation happening at Kellogg? Kellogg has outstanding faculty recognized as among the most influen- tial thought leaders researching how private companies operate alongside government agencies. Many combine academic rigor with a passion for leading change within both public and pri- vate sectors. Finance Professor Jan Eberly returned from serv- ing as chief economist at the U.S.