MARRIOTT ALUMNI MAGAZINE fraser bullock: A Gold Medal Turnaround Winning the Web Wars Retrofitting the CPA Profession MARRIOTT SCHOOL OF MANAGEMENT | BRIGHAM YOUNG UNIVERSITY | WINTER 2002 marriott school mba director henry eyring and mba students celebrate best “bang for the buck” honors. according to forbes magazine, the school’s graduates are able to recoup their mba investment in 2.5 years—the shortest time for graduates from any small business school in the nation. the magazine also reported that byu’s class of 1996 saw their pre-mba salaries rise more than 250 percent from 1994 to 2000, five years after graduation. low tuition costs, good jobs, and career advancement enabled marriott school graduates to earn a faster payback than graduates from other top small schools. CONTENTS at work alumni exchange trends speeches special feature retrofitting the question: winning the find your oil; make fraser bullock: 4 cpa profession 9 How can you stay on top 10 web wars 16 your mark 22 a gold medal by Jeannie Patton of the latest business and by Jeffrey H. Dyer & by James W. Ritchie turnaround technical developments? William Hesterly by Gregory Taggart motivators in 18 business by L. Aldin Porter NEWS 2 dean’s message Faculty recognized for authorship, awards, and professional Integrity: Hallmark of a BYU Graduate advancement. New faculty hires. by Dean Ned C. Hill 32 alumni 27 school news Report of fall Alumni Board meeting including announcement School announces creation of H. Taylor Peery Institute of of new members. Financial Services, executes successful E-business Day, and hosts Korean professor. Alumni achievements, Class Notes, and Management Society updates. Students commended for excellence in field study, entrepre- neurial, and academic efforts. Cover photo by Brad Slade, inside cover photo by Jaren Wilkey/BYU here than at other universities. One BYU large stake center. I was curious to see that student comment in the Duke study is people attended from the diamond capi- very insightful: “When someone under- tals of the world—Antwerp and stands the importance of integrity, no Johannesburg. Their messages were read at policies, rules, or guidelines will have any the funeral. I paraphrase, we knew Lowell more effect than the person’s own con- as an excellent man of business. More science. My belief in God and the princi- importantly, he was a man of integrity. He ples of the LDS Church are my main drove a hard bargain, but he could always monitors for not cheating. Everything else be trusted to keep his word. Lowell’s suc- is secondary.” cess was built on integrity. What is integrity? A person of high Jon Huntsman, Sr., is one of the most integrity is inwardly what he or she pro- successful businessmen in America. He has claims to be outwardly. It is not difficult founded a number of companies in the to claim to stand for certain values when republics of the former Soviet Union. Two the pressure is off—but much more dif- of his former employees were in my MBA ficult to live those values when life’s class at BYU and told me of the box facto- pressures come. Similarly, it is relatively ry he founded in Russia to help this emerg- easy to proclaim to be a follower of ing economy with its exports. After the company started producing boxes, a tax administrator came and informed the dean ned c. hill company that tax rates were being increased—to a point that made the com- pany completely unprofitable. However, the official said, if certain Integrity: Hallmark of a amounts could be paid under the table directly to the tax official, he could “take BYU Graduate care of them.” It is Jon Huntsman’s policy never to pay a bribe. The official was insis- tent. Jon Huntsman decided to sell the fac- tory to local management for one dollar YU students are known for their Christ. The person of integrity, however, rather than pay a bribe. He lost his invest- Bintegrity. Last spring’s special MBA will not only proclaim outwardly to fol- ment of millions of dollars but he would ranking issue of the Wall Street Journal low the Savior but will, under the pres- not compromise his integrity for money. that came out 30 April 2001 made several sures of life, demonstrate attributes of the A few years ago, one of our top very favorable mentions of the Marriott Savior on a consistent basis, day in and Marriott School MBA graduates accepted School. Of all the positive comments, the day out. To say our students have integri- a lucrative job with a prestigious company. most significant to me was “respondents ty is to pay them the highest compliment. He and his wife moved to a large city and [recruiters who hire our graduates] said the The Lord highly values integrity. He were enjoying the prospects of a rapid Provo, Utah, school’s students are appeal- promised great blessings to Solomon: move up the success ladder. But he was ing because of their integrity” (p. R8). “Walk before me, as David thy father asked to engage in business practices that An academic study conducted by walked, in integrity of heart” (I Kings 9:4). compromised his integrity. He approached Duke University is evidence of BYU stu- Unfortunately, David did not retain his his superiors and told them he could not dents’ integrity. It revealed that 92 percent integrity throughout his life. do what they were asking him to do. He of BYU students report they have never There are many examples in modern was fired. He spent several months out of seen someone cheat, compared to 55 per- times of people with integrity—and some work. Fortunately, he finally did get another cent of students from other universities. who lack it. Let me illustrate from my very good job—even better than the first. Eighty-two percent of BYU students report own observations related to the business A father was preparing his taxes late “never” having received test questions and world. one night. He had assembled all the appro- answers from someone compared to only Last year, I attended the funeral of priate records and worked hard to deter- 58 percent for the norm group. Lowell Benson, executive vice president of mine what he owed the IRS. When all was BYU students report that the univer- the O.C. Tanner Company and their chief computed, he found that he qualified for a sity provides a strong environment for buyer of diamonds and gold. He was also small refund. But then he suddenly developing integrity. And at the same a stake president in Salt Lake City and a remembered a transaction. He had been time, our students report that competi- great friend and graduate of BYU and the paid for one fairly large job in cash. No tion for good grades is more intense Marriott School. His funeral packed a records were made of the transaction. He 2 MARRIOTT realized that the IRS couldn’t have Am I a true friend when that friend is not Marriott Alumni received a report of this income and like- around? How do I behave when no one is ly would never know about it. Reporting watching, when no one can find out what Magazine it would cost him more than $1,000 in I did? When I give my word, can it be state and federal taxes—a sizeable relied upon implicitly? When I make a amount to his young and growing family. commitment, do I keep it? When I make But then he thought, “I am a man of sacred covenants, do I uphold them? integrity. This is a small price to pay for While it takes years to become a resting well at night knowing I have been proven person of integrity, it is easy to honest.” He had to take out a short-term lose integrity—and difficult to restore it. loan from the bank, but he paid the extra How do we know when we are losing our taxes and slept well. integrity? The still, small voice will tell What can we learn about integrity us—the whisperings of the Holy Ghost. from these stories? First, to be a person of In my experience, if we listen and heed his winter 2002 integrity we must be willing to pay a price. warning, we will know clearly if we are marriott school It cost Jon Huntsman literally millions of getting on the wrong track and need to brigham young university dollars. It cost the MBA graduate his job. make a course correction. Neither had any hope of monetary reward In contrast, if we ever become too for living with integrity. busy or too insensitive to listen, then we Ned C. Hill, Publisher Second, living with integrity may may find ourselves as Laman and Lemuel. Joseph D. Ogden, Managing Editor bring recognition from the world—but Nephi said of them: “and he hath spoken J. Melody Murdock, Editor not always. Worldly recognition is not unto you in a still small voice, but ye were Byron Bronk, Copy Editor necessarily the object, nor should it be past feeling that ye could not feel his Liddy Walseth, Art Director expected. The young father was not words” (1 Nephi 17:45). Jenny Stathis, Assistant Editor rewarded with public acclaim but rather While we have many examples of with a clear conscience, peace of mind, people of integrity all around us, we must Seth Christensen, Assistant Editor and a good night’s sleep. look to the Savior to see the perfect exam- Tyler Walseth, Contributing Designer Third, the decision to live with ple of integrity.