B.Joseph White Becomes Dean

The Magazine of the School of Business Administration • University of Michigan • Spring 1991 Dea r Alumni and Friends, Many of you have written to congratulate me on my appointment as the Dean of the Michigan Business School. I am honored by this appointment and your generous thoughts mean a great deal to me. Three words best describe my feelings in taking on this job: responsibility, challenge, and excitement. Responsibility comes from the fact that we are all beneficiaries of over 60 years of investment in the Business School made by present and past members of the community. Now we are the stewards, responsible to ensure continued excellence. We must commit ourselves to continued development of this institution, so that we can pass along to future generations a School not just as good as todays, but better. This is what our predecessors did for us; now we owe no less to our successors. Our challenge is to achieve excellence in our mission of educating students, developing and disseminating knowledge, and helping the institutions of business become more effective. It is a mission that we pursue at a time of tremendous opportunity, but also at a time of unprecedented expectations on the part of our stakeholders as well as intense competition among leading business schools. The escalating performance standards and heightened competitive dynamics which have challenged industry after industry in the last ten years are now on our doorstep. The excitement I feel is a result of my high level of confidence in our current strategic position and of the commitment and support given by the entire Business School family: our alumni, our friends, and the corporations we serve. Broad ownership of and involvement in our goals, strategy and plans will be essential to our success. I could not be more honored than to have the opportunity to work with the Business School family to fulfill the responsibility, to meet the challenge, and to share the excitement.

Sincerely,

B. Joseph White Dean Dividend New Center for International Business Education The QBE leverages the U-M's international expertise. _ 19

B. Joseph White Becomes Dean -

So! What Do You Want to Designing a Course on Do With Your Life? Global Interdependence Experimental course helps Students in both business students find answers to this Spring, 1991 and the liberal arts take frightening question. Vol. 22, No. 2 experimental multi- disciplinary course. About the Cover: Working on a Two-Way 11 The courtyard of the Executive Street William A. Paton Dies at 101 Residence Dining Room is especially Some Business School beautiful in spring when the pear trees programs make sure that the bloom. In this photo, taken by Gregory Fox, you can see the tables and chairs road between academe and Bankruptcies, Workouts stacked ready to be arranged for people the "real world" is well and Turnarounds to sit outside in the warm weather to travelled in both directions. The 5th annual forum of the J. Ira Harris Center for the Dean: Study of Corporate Finance. B. Joseph White

Associate Deans: Thomas C. Kinnear; Edwin L. Miller; Among Ourselves B. Joseph White; Anneke deBruyn Overseth, Associate Dean for External Upping the Odds on Relations Success, Karl Pearson Dies at 82 by Jane Myers Editor: BIAD links University Pringle Smith expertise with Midwestern Class Notes Design Firm: companies to help foster Randall Reno Design industrial competitiveness. Trying to Slay the "Ism" The BIAD team has saved or Copyright © 1991 by the Michigan Beast created 5,000 jobs over the Business School Business School's first past seven years. Printed by the University of Michigan Diversity Forum aimed to Printing Services. This publication is uncover misunderstandings. made possible through the generosity of private donations.

Dividend I 1 B. JOSEPH WHITE IS

l Joseph White has been chosen the new "The School faces many challenges!' White ex­ I dean of the Business School, and will take plained. "We must continue to improve an already B• office July 1. He has been interim dean of good faculty and student body. Through innovation, the School since Sept. 1, 1990, when our former we must Improve our programs, particularly the MBA. dean, Gilbert R. Whitaker, Jr., became provost of We must offer the best MBA program in the country. the University of Michigan and vice-president for We must build on an already high level of intellec­ academic affairs. tual endeavor. We must develop preeminent strength "I am absolutely delighted that Joe White has in specific areas. We must become a model of a. decided to accept our offer of the deanship of the diverse human community. We're off to a great School of Business Administration'' said President start. Our MBA class of 1992 is 29% minority, 29% James J. Duderstadt in announcing the appointment. women, and 15% international students. But we "His unique background of both academic and need to keep building, to become a model for the business experience should serve him well in pro­ campus, the state and the nation. viding strong leadership for the School. "Finally!' White added, "we must continue to "Furthermore, during his time as interim dean become a better financed school, especially in the he has been both an important and particularly area of private giving. That is vital to maintaining creative member of the University leadership team, our competitiveness with the finest business schools and I look forward to working closely with him in in the country!' the years to come!' White first joined the Business School in 1974 hite was a member of the Board of as assistant professor and was promoted to associate Examiners of the Malcolm Baldrige professor in 1978. In 1981 he accepted the appoint­ National Quality Award in 1990 and ment of vice president-management development W recently was selected a fellow of the US.-Japan for Cummins Engine Co., Inc., Columbus, Ind. He Society Leadership Program. The Society launched later was promoted to vice president-personnel and its leadership program in 1984 "to foster and pro­ public affairs. He returned to the U-M in 1987 as asso­ mote greater understanding between Japan and ciate dean and professor of business administration. the United States!' Fellows are selected for their "Joe was selected from a very large pool of out­ "demonstrated potential for national leadership in standing candidates, and is the first Business the fields of business, government, administration, School dean selected internally since 1928'' said labor and journalism!' White holds a B.S. degree Provost Whitaker. from Georgetown University, an MBA from Harvard, "Joe brings great skill, dedication and integrity to and the Ph.D. from the U-M. the position. I am looking forward to working with He is a member of the board of directors of several him and the faculty to continue to advance the organizations, including Gordon Food Service, Inc., School's contributions to management education Three-D Inc., and the Cummins Engine Foundation, and knowledge!' and a member of the Advisory Council on Human As associate dean, White was responsible for the Resources of the Conference Board. School's academic affairs, including the BBA program In Ann Arbor, he is a member of the board of and oversight of the Kresge Business Administration directors and chairman of the Medical Staff/Quality Library and the School's computing services program. Assurance Committee of Catherine McAuley Health "The Michigan Business School feces an excit­ Center, and of the board of trustees of Greenhills ing future!' White said. "We must maintain the school. momentum that the School has built in the past Whites scholarly work has appeared in many decade under Gil Whitaker's leadership. We must publications, including the Sloan Management accelerate our rate of improvement. We must move Review, Monthly Labor Review, and California from being an excellent business school to become Management Review. the preeminent school in the country. That's our goal. We must shoot high. NAMED NEW DEAN

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Dividend / 3 WORKING ON A TWO-WAT STREET Some Business School Programs Make Sure that the Road Between Academe and the "Real World'5 is Well-Traveled in Both Directions

Results of Faculty be a very new financial instrument — one trouble. This is NOT for companies in that still has not reached maturity. The trouble — far from it. It's for companies Internship Show Up market is still developing." with excess financial assets." in Accounting Classes Imhoff explains that asset securitization is analogous to just-in-time inventory uring Professor Imhoffs intern­ ene Imhoff, professor of account­ management. "It's a way for corporations to ship, he wrote a paper for bank ing, walked across the London take excess liquidity in the form of various Dmanagers to help them understand GBridge and through the heart of types of receivables and convert them to the process and the benefits thoroughly. England's financial district every morning cash," he says. "It reduces the time of the His paper addressed such issues as which this summer on his way to work. He was cycle of cash to resources (products or assets should be securitized and how to the second participant in the faculty services) which then becomes accounts decide when you should securitize. summer internships initiated by Citicorp/ receivable which then becomes cash again!' "The thing that was impressive to me" Citibank and the Michigan Business A highlight of the summer was when says Imhoff, "is that the people actually School, and results of the internship are Imhoff traveled to banks in Frankfort, involved in these transactions understood showing up in Imhoff s classes, both in Madrid and Barcelona as part of a Citibank their own particular part of the transaction, Executive Education and the MBA program. team that made presentations on asset but did not have a comprehensive under­ These faculty internships are seen as a securitization. "I learned a wealth of infor­ standing of all of the aspects. Among other way to contribute to a faculty member's mation from the head of our team'' says things, I was able to develop a five chapter professional development, while at the Professor Imhoff. "He was in charge of asset accounting tutorial that explains the actual same time contributing to the business securitization for all of Europe. It was so accounting on the books of the buyer firm needs of the overseas office of a major interesting to see all the different barriers as well as the books of the seller firm. I've globally-oriented corporation. The first to this process which had to be negotiated also been in touch with the FASB about internship was held by Bernard Yeung, because the laws of Spain were different their accounting standards for these trans­ assistant professor of international busi­ from the laws of France or Germany. "I actions, and have been working on a ness, who worked at Citibank Hong Kong learned a lot more about asset securitiza­ position paper about accounting standards in the summer of 1989. tion from sitting in on some meetings with for asset securitization. The instrument is Imhoffs major project during his intern­ prospective clients than from anything else. new enough so that standards have not ship was to develop a comprehensive "Companies don't yet see the full picture yet been issued." explanation of asset securitization that could of the potential benefits of asset securitiza­ Imhoff, who won the outstanding be used by Citibank internally. "Citibank tion'' Imhoff continues. "In fact, people have teacher award at the Business School in is probably the world leader in asset secu­ tended to view it as a low class financial 1988, says his classes have been enriched ritization," says Imhoff. "It's considered to instrument only used by companies in by his internship experience. "I came back

4 / SPRING 1991 Gene Imhoff, professor of accounting* who won the outstanding ieactar award at the Business School m 1988, says his classes have been enriched by his internship experience at Citibank in tondbn last summer,

with a good collection of foreign financial to help students understand the nature of talked to about 70 BBA students about statements that I am using in my course global competition and its impact on the his experiences as Texaco went through pack'' he said. "For instance, the financial social, economic, legal, and political fabric an $11 billion legal judgment, Chapter 11 statement I got from Volvo provides an of the United States; and 3) to provide the proceedings and reorganization, a proxy excellent example to show students the context for interpreting global events and fight with a corporate raider, and restruc­ differences between the results of Swedish the consequences of global competition. turing which generated 38+% shareholder accounting principles and U.S. accounting "I must say the program is one that will returns for two subsequent years. principles. In the course of my travels, I benefit me and my accounting students Solberg started out by asking the class also came across a great product developed for years to comer says Imhoff. how many of them aspired to be an officer by a consulting firm that compares and or CEO of a company. About two-thirds contrasts all the different accounting of the students raised their hands. "OIC methods for 10 different countries. I am said Solberg, "suppose you're the chief using that in my introductory course, and executive of Texaco in 1987. You're feeing an have given it to a former Ph.D. student of Learning Whafs Not $11 billion judgment against the company mine who is now teaching international which you believe is incorrect. However, if accounting at the University of Chicago. Included in Textbooks you want to appeal, you have to post a bond And when asset securitization came up in ne afternoon last semester, representing the total judgment, and there the Executive Education program, I was Professor Ray Reilly who is the is no bond capacity at that amount. able to answer the question entirely differ­ Odirector of the Michigan Execu­ "Furthermore, you have a traumatized ently than I would have before my tive program at the Business School, was employee base because of a 1984 merger, a summer internship. approached by his son about a finance negative press image, and takeover rumors. These activities all fit right in with the class he was taking at the Business School. On top of all this, the former CEO remains goals of the internship program, which is "Dad, we're studying the Texaco-Pennzoil on the board of directors and everything one aspect of a multidimensional plan for litigation in my finance class. Can you tell you'll want to do requires board approval." incorporating a further global dimension me something about it?" Solberg then proceeded to discuss the into the Business School curriculum. Goals "Why talk to me?" said Reilly. "We've got complexities of the case, talked about of the plan are: 1) to influence the way the very guy who helped Texaco's president some of the personalities involved, gave faculty members identify and treat global and chief executive guide the company some of his opinions, described a takeover issues within the context of a course in through that litigation." attempt ("it can be as much a 'mind game' their discipline; 2) to encourage faculty The upshot of that conversation was as a 'financial game'"), talked about the members to develop international examples that Robert Solberg, a participant in the movie Wall Street, discussed tactics at an and a global orientation that can be used four-week Executive Education course, annual meeting when a company is in a

Dividend I 5 proxy fight, and touched on corporate files, industry news, country profiles, and Bill Gust, MBA '89, told them what was ethics ("in college you learn what's right comments and forecasts from several dif­ going on there — who was buying, who and wrong, and you get out in the world ferent providers. The service, which usually was selling, and other broader information. and find out that not everyone plays fair"). costs $60 an hour, also provides real-time "I wanted students to have experience Needless to say, a fascinated BBA class currency rates, and is used by many with some real world finance, and the in finance learned a lot that afternoon — customers as a tool for managing foreign students in this exercise had access to a lot that would not have been included exchange risk. Bodurtha used the Global screens like those that a real world foreign in textbooks. Report service and worked with the Busi­ exchange trader would view," says Bodurtha, "I hope to find ways of doing more of ness School computer department to set who is assistant professor of finance and this sort of thing" says Reilly "It's a matter up both 24-hour access and the currency international business. "The other advan­ of matching participants in our Executive trading simulation. tage of the exercise was to introduce stu­ Education programs with appropriate On this particular Friday morning, dents to the real-time pricing features of classes. We need to find out exactly what third quarter GNP as well as third quarter Global Report. You cannot do international kinds of problems are being studied in GNP deflator revisions and October dur­ finance any more without technology!' classes, what cases are being used, and able goods orders were all going to be an­ Students were able to start trading at whether our Executive Education partici­ nounced at 8:30 and would immediately 8:10 a.m., and needed to be prepared for pants might be used to inject some of their appear on the Global Report screen. Stu­ sudden shifts in the market depending on experience into those classes. Matching dents, who were divided into teams of three what data was announced at 8:30. The these resources up presents problems both and who were each to trade one currency, simulation was set up so that all the buys in information gathering and in scheduling. had prepared themselves ahead of time and sells were recorded and reviewed for However, we're working on solving those to take long or short positions in their trading profit reconciliation and reporting. problems because the potential payoff is currency based on what they thought the so worthwhile." GNP and other data would be. Each team f all the teams, only one made was to trade either yen, Deutsche marks, money over the hour of real-time British pounds, French francs or Canadian Otrading. Even though 40% of the dollars. One person in the team executed teams guessed right on the direction of trades; the others monitored news events the announcements, some did not take Real-Time Trading and consulted on trading tactics. their profits quickly enough — and others in $10 Million Lots The teams were given instructions and failed to account for the transaction cost details about what events are likely to affect effect on numerous trades. arly on a Friday morning, students currency values. The exercise instructions "It was galling for some of the students in Jim Bodurtha's class in interna­ included this sentence: "Based on both the to have guessed right on the direction of Etional finance showed up at the market 'consensus' view and your view, the market and yet not to have made Business School to trade currencies in ten plan to buy or sell dollars for your currency money. They learned the need to observe million dollar lots. at the beginning of the trading session. the position continuously. They were sur­ This "trading" was possible because Then, as prices change and information is prised at the lull in the activity of the mar­ Citicorp had made available to all students released, manage your position!' ket at times, and at the unpredictability of in the class its "Global Report" service, an The teams used two screens each for it all. Also, they learned that sometimes online information service that includes Global Reports — one for prices and one markets just have a mind of their own," foreign exchange rates, interest rates and for updated information. They also had an said Bodurtha. bond prices, stock quotes, company pro­ open line to the Citicorp trading floor, where This is not the first project Bodurtha

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~"^ Pictured above, Jim Bodurtha, assistant professor of finance and international business, talks to his class as they prepare to start currency trading in $10 million lots. To the right, the pictures show the progression of trading.

6 / SPRING 1991 has done with Citicorp. He developed a Through his career, Dr. Dufey has been in seminar for selected Citicorp participants close touch with the practical aspects of to introduce them to the foreign bond his field as well as the theorectical aspects. markets of six key countries: the U.K., He has been employed with companies France, Germany, Canada, Japan, and both in Europe and the United States and Australia. He also designed and taught a serves as a consultant to a number of inter­ three-day intensive program intended to national companies. His academic interests expand participants' understanding of center on international money and capital option products and their use in portfolio markets as well as on financial policy of and risk management strategy Citicorp multinational corporations. has also provided funding and data useful In structuring the course, Dufey drew in Bodurtha's research, which focuses on on the expertise of the U-M finance faculty global financial risk management, asset- as well as some former U-M professors to liability valuation and hedging, and present technical topics designed to update econometric applications in finance. and sharpen the financial technology skills Commented one of the students, "The of the participants. Another part of the Foreign Exchange Trading Game was excel­ program was devoted to managing client lent since I really have a different (and relationships, or in other words, financial better) understanding of the theory after­ marketing. This module included a panel ward. The point is that we applied what discussion, entitled "Relationship Banking we learned in class to a realistic problem." in the 1990s: Client Perspectives'' by a panel of chief financial officers." Several lectures were presented on various aspects of under­ standing the needs of corporate clients. Lastly, the program included a compre­ Deutsche Bank Senior hensive case study which dealt with a US. Frankfurt. "We like the small classes here, acquisition and the financing proposals Executives Attend and the 'real world' emphasis. This pro­ made to this European client, using the Special Executive gram for our senior executives will improve techniques and opportunities available in the skills of our corporate finance people, the international financial markets. The Education Program as well as allowing our top branch people course included a discussion on strategy nother project that combines the to get to know our corporate finance people in global markets with special emphasis "real world" with academe took so that their teamwork will be enhanced. on investment banking. Aplace this fall when Deutsche Bank "Investment banking in the Anglo-Saxon Participants in the program all lived in sent 30 of its senior executives to a special world is ahead of Germany, so by studying the Executive Residence, which allowed executive seminar on investment banking here, we can learn in advance what's com­ for a great deal of informal interchange at our Executive Education department. ing towards us. We do not have this type between the various corporate senior "We haven't done this kind of training of executive education program in Germany. officers and top corporate relationship with outsiders before," said Michael This special executive program was managers who might not have known Rohleder, first vice president and corporate structured by Gunter Dufey professor each other previously. finance director of Deutsche Bank in of international business and finance.

Dividend / 7 "ISM" Beast

Business School's First Diversity Forum Aimed to Uncover Misunderstandings

The seven students who were the organizers of the Diversity Forum meet to make final plans for the day. From left to right, they are: Steve Weinswig; Patrick Miller, president of Student Council; Constance Porter (standing); Roxanne Carlos; Beth Finn; Jack Foreman; and Chris Iannuccilli. Photocredit: D. C. «t _ _ — ^e tJle acJs on t]le prevjous Raula Caproni, assistant professor of organi­ Also, members of our Alumni Society Board %/%/ pages may have grabbed your zational behavior and human resource of Governors, who happened to be holding w ¥ attention and even made you management (OBHRM). "However, that their semi-annual meeting that day, were angry — this is not about hostility, it's about can also raise the frustration level of stu­ so interested in the proceedings that they communication;' read a full-page ad in the dents because we open up difficult issues rearranged their agenda to allow them to March 11 issue of the Monroe Street Journal, and we don't claim to have all the answers!' take part in some of the activities. the Business School's student newspaper. The student team that worked on Patrick Miller, Student Government The ads referred to were small boxes Diversity Day gives credit for some valu­ President and one of the Diversity Day that contained sentences designed to attract able consulting to Poppy McLeod, assistant planners, said: "People should be rational people's attention. Some samples: "Was a professor of OBHRM, who served as a individuals and actually investigate those minority student handed your job?" "Why resource for student organizers in discus­ around them to attain personal develop­ did the Follies offend homosexuals?" "Why sing the structure of the event, and enabled ment. An individual should be proactive is the UMBSA referred to as 'the WBSA' — some of the organizers to get course credit, in finding out the truth about people!' the White Business Students Association?" and Professor Caproni, who provided the Through Diversity Day, Patrick said he After each of the sentences was the state­ film "A Class Divided." would like to push his peers and himself ment "Diversity in Fact. . . Not Just in to examine why something is being said, Theory!' hose who wanted to participate in not what is being said. The full-page ad announced the first the Forum were asked to sign up Business School Diversity Forum, a Tahead of time in the Student Lounge, gathering designed to bring "whispers so that they could be assigned to a group. The audience saw a film in the hallway" out into open discussion. The forum itself consisted of a brief intro­ about a world divided into Theme of the Forum was "Diversity in Fact duction, an hour-long breakout session . . . Not Just in Theory!' It was designed to where assigned groups of eight each dis­ blue-eyed people, por­ uncover the misunderstandings that take cussed controversial issues and worked on trayed as lazy, unmotivat­ place between the many diverse groups suggestions for solutions, and a wrap-up/ ed, and basically represented at the Business School, and refreshment period. Thirty different groups by open discussion to reduce the power of at the Business School, including many undesirable, and brown- the "Ism" Beast — racism, sexism, ethno- student clubs, the Dean's Office, and the eyed people, portrayed as centrism, etc. Faculty Executive Committee, endorsed responsible, hard-working It should be noted that the Business the forum and were listed in the ad. School is a national leader in actually Much to the surprise and delight of the and superior in every way having such diverse groups. Of the MBA organizers, two hundred and forty-eight class of 1992, 29% are minority. Interna­ people signed up to take part in the groups, tional students comprise 15% of the class, for a total of 31 groups. Before being Hale Auditorium was nearly full as the females are 29%, and 32% are proficient assigned to a group, people were asked Diversity Forum began. After a brief wel­ in a second language. In 1989, the Business to sign a "Moral Contract" in which they come from the seven organizers of the School was cited by Business Week as hav­ pledged to attend the Diversity Forum forum, the audience saw a 20-minute film ing achieved the most diverse crop of "with an open and objective mind with a entitled "A Class Divided^' about a world students at any of the nation's 250 nation­ common goal of working with my fellow divided into blue-eyed people, portrayed ally accredited MBA-granting institutions. students to improve the management of as lazy unmotivated and basically unde­ That year, 25% of the class was minority diversity at the Michigan Business School!' sirable, and brown-eyed people, portrayed and 16% was black. The contract also said, "As a student at as responsible, hardworking and superior A constellation of resources came to­ the Business School, you are taking a sig­ in every way. gether to make Diversity Day a success for nificant risk in exposing your feelings and After seeing the film, the audience dis­ the students and the school: students opinions to your peers about topics that persed to 31 different rooms in the School with a talent for leadership, support from are not usually discussed in culturally di­ to conduct an hour's discussion among the Dean, a diverse student body, the right verse groups. If you can put your fears aside themselves. The purpose of the groups time in the institution's history and some and realize that this activity can better you was to promote understanding of different pre-conditions created by the core course as a person and ultimately improve the perspectives through the exchange of in organizational behavior. entire program, you are ready to participate meaningful dialogue. Each group received "In the OBHRM course, we make the in this innovative and dynamic experience." a list of 12 questions to help get discus­ topic of race discussable by the readings It should be noted that although the" sions going, a directive to be candid but we assign, we talk about Workforce 2000, contract specifically referred to students, also to be respectful of other people's feel­ and we acknowledge the tensions',' says some faculty also participated in the groups. ings, and a request that each group leave

Dividend I 9 15 minutes at the end to develop solutions the Business School?" Students Association and the other from to the issues raised. A sheet for recom­ — I get upset when there are special the U-M Business Students Association? mended solutions was also attached to the corporate presentations made to the Black That way maybe we'll create more conver­ packet of materials. Business Students Association. That seems sation between people you usually dorit Some of the discussion questions were: like discrimination to me. hang around with!' What do you think it is like to be black, — As long as they're doing presentations "Let's make sure when classroom study white, female, Hispanic, Asian or any other for the general student body as well, I groups or team groups are assigned, that group of your choice? What is your biggest don't see the harm in it. they are specifically designed by the faculty complaint about any of these groups? Do — I met a guy the other day walking into member to be diverse!' you think students from different cultural the computer lab. He said, "I'm so mad "A lot of bonds are formed in the first year backgrounds dorit socialize as often as they because I'm supposed to write a thank you of school. We need some team-building should? Is there ever a time when you are note to this recruiter and I dorit want to exercises in that year. afraid to say what you really think to some­ write it!' I asked, why not? He answered, "Let's have these groups meet some morel'' one because of their background? Why? "Because after my interview, this recruiter After the suggestions, Patrick asked, told me that they were really looking for a "How many are actually sitting with their minority! So he really wasted my time and discussion group right now?" I dorit feel like thanking him for the Only a very few hands went up. hat follows are excerpts from interview' Said Patrick, (looking at the sparse one discussion that took place — In India we have something similar — number of hands), "So it seems most of W in a group of five white males, only there it's based on class. I'm a Brahmin, you did not actually stay in your diverse one white female, one black male and one which is upper class, and my forefathers group. This shows how deep these things Indian male. did things I'm not proud of. I needed an run. But, the conversations you had today A+ to get into a school that the under­ dorit have to stop. You can go on from — Why do blacks want to hang together? classes could get into with a C+. But here. Now let's break for refreshments." — That's not hard to understand. I did it those underclasses were discriminated People stayed a long time at the recep­ when I was in Manila — hung out with against for years. Without the prop, how tion afterward, and conversations seemed my own group. For one thing, I just are you ever going to get them into the especially lively. And at last account, some wanted to speak English on my off-hours. main stream? I think it's appropriate for of the "diversity groups" were still meeting — It can be a big stress. I have a friend me to need an A+ and them to need a C+, for a couple of hours each week. Stay tuned. who's part of an interracial couple. And considering the history. everywhere they go they get stared at. You want to not have the stress. I just want to be me, and not have to be on guard. — If you're in a diverse group you have to fter the group meetings, Hale audi­ monitor what you say so as not to offend torium again filled up with people, anyone. In a homogeneous group, that's as they discussed solutions. The not a problem. A buzz of conversation indicated that indeed — Why do you need to make a conscious some communication had been going on effort? Why can't you just be normal? in the groups. Said Patrick Miller as he — Well, it's the same as if you knew opened the meeting: "It looks like we've someone's parents had just died — you'd got people talking!' be sensitive to that and be careful what Here are some of the solutions and you said. suggestions brought forward by the — I was in a study group of five men and groups: me, and they would make comments you "One problem is that the people who wouldn't believe. really need this forum aren't here right — I'd believe it. (nervous laughter) now. Maybe it should be made a part of a — They'd talk about a woman as "that core course in organizational behavior so cow" and make comments about the date everyone would have to participate!' they had the night before. I'd say, "I dorit "Let's have the forum up front when we want to hear this!' And they'd say, "What first get here. Why not make it a part of are you complaining about? We're not orientation?" talking about you." "How about doing some mentor pairing — Let's talk about question 7. That one — one member from the Black Business says, "Do you feel discrimination exists at

10 / SPRING 1991 Linda Lim, a member of our international business department, who designed the course on global interdependence along with Ken DeWoskin, chairman of the department of Asian languages and cultures and professor of business administration. Designing a Course on Global Interdependence

s someone whose academic career spans The original idea for the course came from Ken both the liberal arts and business, Linda DeWoskin, chairman of the department of Asian A Lim is happy that she can now wear both languages and cultures and professor of business those hats simultaneously. Last year, she was administration. It was funded as a curriculum handed the challenge of developing a course that development initiative by a grant from the U.S. would explicitly educate both business and liberal Department of Education to the newly established arts students in an international studies course that Center for International Business Education at the would take a multi-disciplinary multi-area approach. Business School (see page 19 for more about the The course, which ran for the first time last fall new Center). under the title "Global Interdependence'' also aimed The goals of the course were two: first, to expose to be of value both to upper-level undergraduates business school students to a range of ideas and and to graduates throughout the University. information related to global interdependence that iillllitt "As an economist, I normally teach rather they would otherwise not encounter in the regular narrowly-focused courses in international business, business school curriculum; and second, to expose international economics and Asian economic devel­ non-business students, primarily in the liberal arts, opment'' says Dr. Lim, who is research director at but also from other professional schools, to the role the Southeast Asia Business Program and a member that business plays in international affairs. The idea of the Business School's international business was that both groups of students would learn the department. "I had never before attempted some­ material together simultaneously thing as broad as this course." Dr. Lim and Professor DeWoskin, who designed

Dividend / 11 the course together, decided to recruit guest lec­ Stanford from 1984-85. She has published exten­ turers from Michigan's huge resource base of inter­ sively on race, ideology, and the meaning of free "The under­ national studies faculty "Michigan is fortunate to labor, as well as on the dynamics of slave emanci­ standing and have a unique resource in the large numbers of pation in Cuba, and on postemancipation societies faculty in different schools and disciplines through­ in comparative perspective. management out the University who are involved in international A lecture on "Economic Reform in Socialist of global inter­ teaching and research and are experts in different Countries" was given by Ernest Wilson, associate dependence is international subjects as well as geographical areas^ professor of political science and public policy and says Lim. "DeWoskin and I suggested with varying director of the Center for Research on Economic inherently degrees of specificity the topic that each individual Development. Wilson is a world-renowned expert a multi- lecturer should cover, targeting what we knew about on privatization and economic reform. He has disciplinary his or her special area of expertise and interest" served as special advisor to the government of The course examined historical, cultural, political, Nigeria, the World Bank, the U.N., the U.S. State problem. It economic and technological factors underlying Department, and the government of Poland. involves the increasing global interdependence, with a special A lecture on atmospheric change was given by complex inter­ focus on international economic exchange in differ­ Thomas M. Donahue, Edward H. White II Distin­ ent historical periods and cultures. Students were guished University Professor of Planetary Science, dependence of expected to actively discuss readings drawn from Atmospheric, Oceanic and Space Sciences, College economic, different disciplines, and to prepare short papers of Engineering and professor of physics at LS&A. political, on three topics each. There was also a final exam, He is a foremost authority on global warming. He which consisted of short essay questions. is chairman of the Science Steering Group of the historical, "The understanding and management of global two Pioneer Venus missions, and has participated geographical interdependence is inherently a multidisciplinary as an experimenter or as an interdisciplinary scien­ and cultural problem," says lim. "It involves the complex inter­ tist on the orbiting geophysical observatory missions: dependence of economic, political, historical, Voyager, Pioneer Venus Multiprobe and Orbiter, forces at the geographical and cultural forces at the corporate, Galileo, Comet Rendezvous Asteroid Flyby and corporate, national, and international levels." Apollo-Soyuz. national, and C. K. Prahalad, professor of corporate strategy at international he 25 students who enrolled in the course the Business School, spoke to the class on global were a mixture of graduates and undergrad­ corporate strategy and U.S. business performance levels!' uates, including an MBA student and a BBA in comparative perspective. In 1989, his article on T "Strategic Intent," co-authored with Gary Hamel, student, as well as an international business Ph.D. student and a visiting business journalist from won the first place McKinsey award for the article California who sat in on the entire course to published in the Harvard Business Review that con­ "internationalize" herself. tributed most significantly to top managers of busi­ ness and was most likely to have an effect on their After a couple of introductory sessions, the actions. His research focuses on strategic manage­ course was divided into seven sections as follows: ment of large diversified corporations and the role the history of international trade; culture and eco­ of top management as an emerging source of global nomic behavior through the ages; politics and inter­ competitive advantage. He has twice won the Excel­ national relations; international economic relations; lence in Teaching award at the Business School. technology and the environment; culture and com­ petitiveness; and the multinational corporation. Prahalad held the students spellbound as he To give you an idea of the diversity and expertise encouraged them as people "who care about the that was available to the students who took this world" to enter the ranks of senior management of course, we list below a few of the topics of the multinational corporations, which he said desper­ lectures and the professors who lectured: ately need imaginative and creative managers in order to meet their moral obligations to the people A lecture on "Slavery, Race & Plantation Societies: around the world whose well-being depends on Colonialism in the Caribbean" was gven by Rebecca their attitudes. Said Lim, "We are seeing the decline Scott, associate professor of history in LS&A. She of the nation-state at the same time we see the rise has won a John D. and Catherine T Mac Arthur of the global corporation. Increasingly, it is the global Fellowship for 1990-95; was awarded a Fulbright corporation rather than the nation-state, which is senior lectureship and research fellowship which the major actor in global interdependence." she took in Brazil; and was a Fellow at the Center "Not only is business a major player in world for Advanced Studies in the Behavioral Sciences at

12 / SPRING 1991 affairs today, but also it is and must continue to be a major force for progressive change in everything ranging from cleaning up the environment to improving the economic position of women in the Third World." Next year, the course will be offered again, but with a reduced number of topics, more discussion sections, and a revised version of the course-pack. The reader will include the lecturers' introductions to their topics/readings and a summary of each lecture. "We hope that this will help make the course transferable to other institutions," said Lim.

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tactots l^^mBIH ****££*•tat** - ** \P ^|||||i^ili||| ***** tes ^° \tvtei jeV otfve* tW1 .„ et &*& e *¥? a* tvo ith the aim of helping other schools ^^.vZZ** interested in designing a similar course, >e^7se oox^rcooX^, 0^fot Gteec WLim spoke at a joint national meeting of the American Association of Colleges (AAC) and the American Assembly of Collegiate Schools of Co ixv^f^eco^' ot Business (AACSB). Her talk was entitled, "Designing 1.exvx .d^ it*** * Sc a Course in Global Interdependence: The Intersection *"5f** . C ^uCav^oXfv*e^Lse ^iexe^ of the Liberal Arts and Business." aftxaxv^° T>ecov» oI(vdxtt ^e "Every school will have at least a handful of faculty ^^tvpxot^e^^fs^ with some international background and experience, both in the liberal arts and the business school, and they could get together to design a similar course which is both appropriate and feasible for their particular institution," she said in her speech. "Our experience at Michigan suggests that what is important is less the specific topic chosen than any suitable international topic as a vehicle for students to read, think, discuss, question, analyze, and formulate opinions and recommendations focused on understanding and managing global interdependence — much as is done through the case-study method of business school education." "We feel that a multidisciplinary course such as ours can be very helpful in educating not only business and liberal arts students, but also faculty, in developing some of the understanding and skills needed to interpret and function within the ever expanding arena of international affairs in general, and international business in particular'

Dividend I 13 I1PM6 THE ODDS ON SUCCESS BIAD Links University Expertise with Midwestern Companies to Help Foster Industrial Competitiveness

By Jane Myers

arry Crockett figures his its British market. But the costs Muehmel, who hopes to utilize BIAD Division, now of translating it to American TAAC's services again in the L located in the Business design standards were pro­ future, calls TAAC's quick School, has saved or created hibitive, and American sales understanding and analysis at least 5,000 jobs in more continued to falter. of their particular problems than 100 companies in Michi­ Then, in 1987, Sahlin "refreshing" and gives Project gan and other Midwestern management heard about the Manager Margaret Creger high states over the past eight years. Great Lakes Trade Adjustment marks for her "professionalism It does this by using Assistance Center (TAAC), in working with us and with University-based scientific,, which is one arm of BIAD. outside consultants!' technical and management Funded largely by the U.S. BIAD, which stands for the knowledge to strengthen Department of Commerce, its Business and Industrial Assis­ manufacturers besieged by mission is to apply the busi­ tance Division, is now ten years foreign competition. ness, scientific and technical old. Originally known as the Take, for example, Sahlin know-how of University'faculty. Special Projects Division, it International, manufacturers to the problems facing Mid­ was established as part of the of the Sahlin Iron Hand, a western companies beset by U-M Institute of Science and mechanical device for remov­ foreign competition. Technology in 1981, and ing parts from a stamping press Working with TAAC's pro­ moved to the School of bed. The Iron Hand eliminated ject manager Margaret Creger, Business Administration in a cause of serious industrial Sahlin management identified 1990. It is directed by Larry accidents, and the company, strengths and weaknesses, Richards Crockett, with Marian which is located in the examined potential markets J. Krzyzowski, Lawrence A. northern Detroit suburb of and developed a plan of action. Molnar and Wallace C. Birmingham, prospered along Eventually they redesigned the Williams overseeing individual with Michigan's auto industry Kobra so that it was not only units within BIAD. from 1947 until the early 70s. price-competitive but improved Major funding for their work By the late 70s, however, (causing less machine vibration comes from the U.S. Depart­ international competition was than before), and developed a ment of Commerce, which has not only making a serious dent production system for its supported the transfer of in sales in the American auto­ American manufacture as well. University-based scientific, mobile industry, but on Sahliris The result: the first orders technical and management international sales as well. based on the new pricing struc­ knowledge to besieged manu­ The company had devel­ ture were delivered on time facturers since the mid70s, oped a successful new product and under budget, and com­ with additional funding com­ — the Kobra, a computer-con­ pany sales and employment ing from the state of Michigan trolled press-transfer device, for have now more than tripled. and the companies themselves. Sahlin President Fred f

i^^^^l^^^^rip

The BIAD team, which has saved or created at least 5,000 jobs over the past 7 years, is headed by (left to right): Lawrence Molnar, director of the Technology Transfer Center; Larry Crockett, director of the Business and Industrial Assistance Division (BIAD); Marian KrzyzowsM, director of the Great Lakes Trade Adjustment Assistance Center; and Wallace WiUiams, director of the Minority Business Services (MBS) program.

and marketing. "We try to key element in TAACs such as "understaffed depart­ The Great Lakes take a snapshot in time'' says successful assistance ments, inefficient plant layout, Marian Krzyzowski, director A programs has been the capital shortage, too narrow TAACNew of TAAC, "and to identify the participation of Michigan MBA product line, organizational Strategies for company's top two or three students, who provide client ambiguity" into six operational weaknesses." The Great Lakes firms with expert analyses of categories. Beating Foreign TAAC is the only one of the industry trends and compe­ Manufacturing deficiencies Competition country's 12 such centers tition. During the summer account for only about a third operating for more than one months, MBA students often of the total "strategic misfit!' The largest unit within BIAD year that has never had a plan serve as IAAC staff consultants Personnel-related indicators is the Great Lakes Trade Adjust­ rejected by the Commerce and at times undertake project account for 18.4% of the mea­ ment Assistance Center (TAAC), Department. management assignments, inter­ sured decline, followed by one of a dozen centers funded A typical firm now coming acting directly with top manage­ finance (17.7%), sales/market­ by the U.S. Commerce Depart­ to the University for TAAC- ment of TAAC client firms. ing (16.8%), product design ment across the U.S. designed help, according to Surprisingly, many of the (8.9%) and administration When a company meets Krzyzowski, is a privately-held weaknesses identified by TAAC (5.4%). Among the weaknesses Department of Commerce eli­ family business, perhaps a have not been manufacturing- identified most often were gibility requirements, TAAC metal stamping plant supply­ related. Jack Edelstein, a "understaffed departments," helps them design a 1-3-year ing parts to the auto industry, doctoral candidate in urban "inadequate cost accounting" plan of action based on a diag­ with about 100 employees, technological and environ­ and "narrow market coverage!' nostic analysis of every facet bringing in $5-10 million in mental planning, has looked The firms seeking assistance of the business from manufac­ revenue annually. at 44 firms who received TAAC and the Commerce Depart­ turing and production pro­ assistance, and has classified ment share consulting and cesses to financial management 24 identified weaknesses, other costs on a roughly 50-50

Dividend / 15 basis up to about $100,000, would be a good way to facili­ the area's manufacturing base, specialists who help commu­ above which the company tate increased information flow it is estimated that nearly 3,000 nities revitalize old industrial must assume a larger share. from universities to businesses, high-wage manufacturing- buildings as well as doing re­ "Its important for the com­ Crockett believes. He points to related jobs can be created search on the problem of aging pany to pay its share, to buy the Georgia Institute of Tech­ over the course of the project and obsolete industrial facili­ into the strategy" says Crockett, nology, which has about 100 to stimulate the community's ties and the possibilities for who has overseen BIAD for the people in 10 satellite offices recovery converting them to other uses. 10 years of its existence, and advising businesses throughout In addition to the Great who has been involved in tech­ the state, as a model. Lakes Trade Adjustment Assis­ nical assistance programs at tance Center and the special the University for 24 years. Flint-Genesee recovery project, The Technology Crockett gained a great BIAD has several other pro­ Transfer Center: deal of his Washington savvy Revitalizing grams designed to help keep over many years of fighting for Flint's Michigan businesses com­ Moving the increased federal support for Manufacturing petitive. They include: Knowledge from research into lupus, a disease • The Technology Transfer University Lab to that killed one of his sisters Base Center, a state-funded program and has afflicted another. which links clients with man­ These days, Crockett himself Manufacturing His ability to make his way agement and technology ex­ is directly involved in bringing through the halls of Congress, pertise at the U-M and four Line the strengths of the academic as well as the halls of the state other Michigan research insti­ sector to bear on the serious Lawrence Molnar, director of capital, has proven useful in tutions: Michigan State, Wayne social, economic, and health the Technology Transfer Center, garnering both federal and state State, Western Michigan and problems faced by people in relies on the professional financial support for the Uni­ Michigan Technological Uni­ Flint and the surrounding searchers in the office of the versity-industry cooperation versity via a 24-hour computer Genesee County area, where U-M Vice President for that BIAD has worked to foster conferencing network. Research, to hook up his over the past decade. 16,000 high-paying GM jobs 1 • Minority Business Services, clients with appropriate tech­ Still, BIAD's funding, about were lost between 1985 90, currently the only university- nical advisors, located via the $1.5 million a year, is miniscule with a similar number ex­ based program of its type in the U-M's online data base compared to what some of pected to be lost in the '90s. the country dedicated to help­ (U-M BEST) of faculty and re­ America's competitors are A BIAD-sponsored, four- ing minority-owned busi­ search staff. He also keeps willing to pay for information, year, $4 million project to encourage community stabili­ nesses thrive. informed about new areas of Crockett says. "Our firms are research or technologies under zation and revitalization in the • The Office for Research on competing with Japan, which study at the U-M which might economically distressed area Industrial Facilities (ORIF), an spends $6-9 billion a year to benefit other firms. acquire applied technology, is underway By diversifying interdisciplinary team of patent rights, licensing, pub­ lished materials, whatever kinds of information they can get their hands on to increase their competitiveness." A statewide system of University-based business advisors, similar to the system of agricultural agents that has been in place for a long time,

Wallace Williams, director of Minority Business Services (MBS), consults with Jim Lewis, president of Lewis Metal Stamping and Manufacturing Company, and John Herring, project manager.

16 / SPRING 1991 Often just a few hours of consultation will solve a firm's Recycling Old technical problem, but the client is free to make his own Buildings: The arrangements if more help is Office for desired. A typical example: workers at a small plumbing Research on and construction supplies Industrial manufacturer were experi­ encing injuries, including Facilities carpal tunnel syndrome, that Still another kind of assistance were the result of repetitive provided under the auspices motions. Molnar arranged a of B1AD involves working with meeting between company economic development groups, representatives, who arrived municipalities and sometimes with videotapes and other data, private owners in finding new and the U-M's Center for Ergo­ uses for old industrial nomics. In a half-day meeting, buildings. U-M staff were able to deter­ Dr. Robert Johnson, left, associate professor of architecture and chair of mine the cause of the injuries, The Office for Research on the doctoral program in architecture at the College of Architecture and Industrial Facilities (ORIF), Urban Planning, and Lawrence A. Molnar, director of the Technology and to suggest both short-term Transfer Center, discuss applications of advanced architectural research. and long-term modifications has since 1978 been bringing to manufacturing processes. together interdisciplinary teams of faculty and students in he Technology Transfer architecture and urban plan­ Center was also in­ ning, business and engineering, volved in a successful who compile a comprehensive businesses and now houses firms. BIAD has had a long T prospectus for re-use (or some­ 27 companies. The 150 jobs history of concern for the effort to convince the Wickes Manufacturing Company to times, demolition) of a building, created by the project repre­ minority business community. stay in Grand Rapids rather based on their analysis. sent a net gain of some 30 new In 1970, in cooperation with than transfer operations to a Manufacturing plants in jobs for the community, which the U-M Business School, Canadian plant they owned. older industrial regions of the had lost 120 jobs when they published the first direc­ U-M analysts were able to United States closed at a rate Kawneer moved its head­ tory of minority business firms demonstrate that the company of more then 3,000 per year quarters to Atlanta. in Michigan. And, MBS was could profitably shift from in the 1970s; in Michigan, Other buildings ORIF has the catalyst in launching the manufacturing stamped metal 288 plants closed between studied include the Heilemann Minority Technology Council parts to composite parts, a 1982 and 1989, costing the Brewery in Frankenmuth, the of Michigan, a unique non­ transition the company has state 129,472 jobs. old Packard Motor complex in profit organization that helps since made. As a result, about "Many of these deserted Detroit, a furniture plant in minority firms to participate 120 local jobs were saved. factories are multilevel, stacked Grand Rapids and a Studebaker in technology opportunities. The Center serves more structures with old elevators," plant in South Bend, Ind. Louis Green, executive director than 200 business clients in said Lawrence Molnar, senior of the council, describes the Michigan every year, and refers research associate and director council's close working rela­ hundreds of others to appro­ of ORIF "Their design usually tionship with the Business priate sources of help. "Often, is terrible for modern material MBS: Enlarging School as "a key factor in our people come to us looking for handling. But, such facilities Opportunities success!' money, or they come with often can fill other needs BS has helped the within the community!' money looking for a potential for Minority Lewis Metal Stamping investment," Molnar reports. For example, the former Businesses and Manufacturing "We're not set up to deal with Kawneer Company head­ M Company in Highland Park to The Minority Business Services either of those situations, but quarters in Niles, Michigan, a profitable year in 1990 after (MBS) program provides con­ we do make referrals." was converted into a success­ lackluster years shared by sulting, research and advisory ful, self-supporting "business many other stamping com­ services to new, as well as incubator" operation that rents panies whose fortunes are tied inexpensive office space to new established, minority-owned

Dividend I 17 to the auto industry. Through prototype capabilities. MBS Director Wallace C. • Won a $700,000 contract Williams, the company has with the U.S. Army Tank and received assistance in a variety Automotive Command to A POCKET GUIDE of areas, including facilitating manufacture an antenna contacts within the automotive bracket. industry and most recently by • Received a Q-l quality rating TOBIAD directing it to the Great Lakes from the Ford Motor Company, The Business and Industrial. * The Flint-Genesee TAAC. Lewis Metal Stamping and stepped up sales efforts at Assistance Division (EI.AD) .Recovery Project, founded to and Manufacturing began Ford. has five different arms that. bring the strengths of the aca­ working with the staff of TAAC, The antenna contract will apply University expertise in demic sector to bear on the and with U-M MBA and grad­ raise sales to the $2.2 million different ways, They are: serious social, economic, and uate engineering students, to level this year. The company health problems faced by produce a Diagnostic Survey is now planning to undertake * The Great Lakes Trade people in Flint and the sur­ and Adjustment Plan. The another joint project with Adjustment Assistance rounding Genesee County area. Office of Trade Adjustment TAAC to improve sales and Center (TAAC), which helps * Minority Business Services Assistance approved $90,000 marketing techniques. To companies devise and imple­ (MBS), which provides consult­ funding (cost-shared by the Project Manager John Herring, ment business turnaround ing, research and advisory company on a 50-50 basis), Lewis Metal Stamping and plans that will enable them to services to new as well, as and the development and Manufacturing represents the become competitive again m established mi nori tyowned implementation of strategies ideal client: "The commitment domestic and international firms, to improve profitability were of President James Lewis and markets, soon underway. Since then, his skilled team have made our * The Office for Research the company has: cooperative effort a success, * The Technology Transfer on Industrial Facilities • Acquired a small tool and and bodes well for the com­ Centex which provides con­ (OR1F), which studies the die firm, providing the com­ pany's future." sulting, research, and advisory problems of plant obsoles­ pany with both tooling and services to Michigan high-tech cence, helps find new uses for businesses. It identifies and old industrial buildings, and links the information resources is currently working to develop of Michigan's five research an early-warning and inter­ universities with the manage­ vention strategy system to ment and technical needs of prevent closure of small and Michigan industrial, firms, medium sized manufacturers,

Pictured left to right standing in front of Sahlin's Kobra press transfer device are Margaret Creger, Great Lakes TAAC project manager; Richard Sahlin, chair­ man of Sahlin International; JS Marian J. Krzyzowski, director of £> Great Lakes TAAC; and Fred §> Muehmel, president of Sahlin O International.

18 / SPRING 1991 NEW CIBE CENTER LEVERAGES THE U-M'S INTERNATIONAL EXPERTISE

new center, designed to help busi­ more holistic approach to international DeWoskin serve as members of the CIBE's ness people, students and Univer­ business education. executive committee, along with Edwin L. Asity faculty understand and take One highly successful example of the Miller, associate dean for research at the advantage of international business oppor­ fulfillment of this mission is a new inter­ Business School and professor of business tunities, is now in operation at the Michigan disciplinary course sponsored by the CIBE. administration, and CIBE director Brad Business School. Newly appointed to be Entitled "Global Interdependence'' it was Farnsworth. director of the Center for International offered for the first time last fall to students The CIBE's goal is to develop programs Business Education (CIBE) is Bradley throughout the University. The course was that will enable students to graduate better Farnsworth, who comes to us from Yale structured to draw on the resources of the informed about international business University where he was associate director University to increase students' awareness opportunities and equipped with the busi­ of the Yale-China Association. of global interdependence, international ness, language and cultural skills necessary At the Yale-China Center, Farnsworth economics, business, culture, and US. to take advantage of them. In the winter was responsible for developing international business relations with foreign countries semester of this year, new courses focusing management training programs and organ­ (for more on this new course, see page 11). on European business were taught in the izing business delegations to Asia. He has French and German languages to business both an MBA and an MA in Chinese Studies and liberal arts students who have a fourth- from Washington University in St. Louis. year capability in those languages. Next The new center at Michigan was made year, the QBE will move into promoting the possible through a three-year grant from acquisition of "exotic" language skills the U.S. Department of Education. The important in newly emerging markets for center received $160,000 in its first year U.S. business, starting with a focus on the (1989-90); 415,000 in its second year Russian, Arabic and Indonesian languages. (1990-91) and expects to receive between To disseminate knowledge about inter­ $350,000 and $400,000 in its third year. national business developments, the center The Michigan Business School was one of is developing and publishing curricular five schools awarded the federal grant in materials for the U-M and other educational the first year's competition, out of 62 institutions as well as for the business and nationwide applications. Another ten professional communities. In collaboration schools were selected in the second year, with other international studies units of for a final total of 15 nationwide. the University, it sponsors seminars, con­ The combination of the U-M's strength ferences and visiting lecturers on inter­ and diversity in international studies, along national topics. The center also has a with a top ranked business school, were roundtable series which brings business undoubtedly important factors in its selec­ and international studies faculty together tion to receive the federal money with top corporate executives to discuss Bradley Farnsworth, Director of the Center for ongoing business developments in different The University teaches 35 foreign lan­ International Business Education. guages, including those spoken in all of parts of the world. our country's top thirty trading partners. It Programs aimed at increasing faculty also has five area-studies centers — on his new course was developed as research and teaching that will promote China, Japan, South and Southeast Asia, a cooperative effort between the the international competitiveness of Russia and Eastern Europe, and the Near TBusiness School and LS&A, with American businesses or improve inter­ East and North Africa, as well as 650 faculty the primary designers of the course being national or business education include a members with international research or Linda Lim of the Business School's inter­ faculty research competition, a doctoral teaching interests. national business department and Kenneth dissertation research award, additional The CIBE's mission is to enhance, J. DeWoskin, professor of Chinese language overseas internship programs for students develop and coordinate the University's and literature, chairman of the department and faculty, and travel grants for business vast international expertise and information of Asian languages and culture, and pro­ and international studies faculty to learn that relates to business, and to provide a fessor of business administration. Lim and more about business in foreign areas.

Dividend / 19 So! WhatDo You WantTo Do With Your Life?

t is quite frightening to be a junior in or to disappointing offers. The process hese sessions were followed by a college and not know exactly what you can be equally frustrating for the corporate corporate panel discussion on mar­ J want to do with your life," wrote a BBA recruiter who has invested time, energy r keting and human resource manage­ student in applying for a new course in self- and dollars." ment which included speakers from Dayton assessment and career development. "It The course began with an introductory Hudson in retailing; DDB Needham in is my understanding that this course could session on self-assessment and life planning advertising; Hewitt Associates in consulting eliminate some of this anxiety and worry' given by Lauren Blachman, vice-president and finance; Northern Trust in cash He was one of 30 students who were of Bankers Trust. That was followed by management and Procter & Gamble in chosen to take part in the ten-week, non- two sessions on using the Myers-Briggs brand management. The panel discussions credit course offered in the spring semester Type Indicator for self understanding and were designed to help students gain a under a grant from Bankers Trust Company career planning. Then Allan Bomersback, better understanding of undergraduate Foundation. The Michigan Business School staff accounting coordinator for Amoco, career opportunities, and how functional was one of three to receive the award. The led a session on interviewing skills which responsibilities differ within industries. other two were Barnard and Brown. included some role playing that illustrated Then students participated in mock Thirty-five schools submitted proposals the difference between a prepared interview interviews, during which they were able to for the award, given to "further excellence and one for which little or no preparation practice interviewing skills. They were in the field of undergraduate placement had been done. asked to select a company they were inter- and counseling." The course included self-assessment exercises to identify skills and interests; job search strategies and techniques, and panel discussions with corporate represen­ tatives and current MBA students. "The Business School program is so academically rigorous that undergraduates who are facing extreme demands on their time may postpone career planning and self-assessmenC says Patty Watson of the Placement Office, who was project man­ ager for the team that developed the course. Other members of the team were Estrella Hernandez and Christopher Min, both first-year MBA students. "For the student who hasn't taken the time to go through this process, recruiting can become a series of campus interviews leading to frustration

Estrella Hernandez, first-year MBA student who was a coordinator of the Bankers Trust BBA Career Development Course

20 / SPRING 1991 / voi i IV^INO AVAILABLE 'ULL-TIMI

Left to right, Nancy S. Ticktin, president of Bankers Trust Company Foundation which gave the grant for the course; Margaret Carroll, director of placement at the Michigan Business School; and Albert T. BeUino, senior vice presi­ dent of Bankers Trust Company. They are holding a plaque that reads "The Bankers Trust Company Foundation proudly presents the undergraduate career development award for 1990 to the University of Michigan for their innovative proposal which furthers excellence in the field of undergraduate placement and counseling!'

Christopher Min, first-year MBA student who was a coordinator of the Bankers Trust BBA Career Development Course.

ested in working for and do the research is going to be impressed by the discipline, This course "made me realize the impor­ to identify a functional area of interest. the teamwork, and the leadership skills tance of being happy in my job and the Then, wearing their interview clothes, demonstrated by that experience." self-assessment helped me discover what they were interviewed for at least 20 A corporate panel discussion on finance will make me happy'' wrote one student minutes by course coordinators, and this and accounting included speakers from in evaluating the course. Another said, "I was followed by about ten minutes of Bankers Trust on investment banking; Eli had hoped for someone to point out to me feedback for each student. Lilly on corporate finance; Ernst & Young what 1 wanted to do with my life. No one "We tell the students that ANY work on public accounting; General Motors on did this but I have gained some tremen­ experience they have had is important^' corporate finance and accounting; and dous insight and confidence in the ability said one of the interviewers. "They tend to NBD on commercial banking. Another to make my own decisions — good deci­ think that if the work isn't in a corporate panel discussion took place with three sions which take into account my interests environment, it doesn't count. We had second-year MBA and three second-year and a fuller perspective on the opportuni­ one student who was in the Marine ROTC BBA students who talked about summer ties available in the job market!' program but wasn't going to mention that internships and gave advice about the because it wasn't corporate. But a recruiter job search.

Dividend / 21 William illiam A. Paton, pioneer Whitaker, Jr., U-M provost and former accounting theorist who was dean of the Business School. "Although named 'Accounting Educator A. Professor Paton had been long retired of the Century" by the American Institute when Ruth and I came to Michigan, we of Certified Public Accountants in 1987, developed a warm friendship. His spirit died April 26 in Ann Arbor. He was 101 and wit will be with us and all those who years old. Paton knew him and particularly with his former "William Raton's contribution to account­ students forever. Indeed, his intellectual ing education is inestimable^' said B.Joseph contributions to accounting theory are White, dean of the Michigan Business Dies at 101 formidable." School. "He was a pioneer in developing A productive and persuasive writer, Raton modern accounting theory, had a great wrote or co-wrote more than 20 books dedication to students, and was a prolific and 150 articles and short pieces. His early writer. His intellect was keen, and he was treatise Accounting Theory — With Special well known for his challenging questions. Reference to The Corporate Enterprise (1922) He had a tremendous influence on the was one of the earliest works devoted accounting profession, both academically entirely to accounting theory, says Zeff, who and professionally' also describes Raton's An Introduction to Except for a few brief interruptions, Corporate Accounting Standards (1940), co- Paton was a professor of accounting and authored with A. C. Littleton, as "the most economics at the University of Michigan influential treatment of accounting theory from 1917 to 1959, where he moved the in the English language." focus of accounting away from bookkeep­ Paton wrote a succession of textbooks, ing to a sophisticated process that went including Principles of Accounting (1916-18), hand in hand with economic theory and co-authored with Russell A. Stevenson, modern corporate finance. He was one of Accounting (1924), Essentials of Accounting the first theorists to argue that accounting (1938), Advanced Accounting (1941), Asset should not be confined to developing Accounting (1952) and Corporation Accounts simplistic rules for the preparation of and Statements (1955), among others. He balance sheets and income statements, also edited and contributed to the second but that it should also analyze and interpret; and third editions of the Accountants' that is, take into account the effects of Handbook (1932 and 1943), a "Bible for inflation, changing replacement costs, fluc­ accountants," says Pierpont, one that was tuating interest rates and other economic widely used by certified public accountants factors to better reflect the earnings and as a sourcebook. financial position of a company. In more than 40 years as a faculty Corporate accounting was a moving member at the Business School, Paton had - stream of information, he maintained, contact with at least 20,000 students, and William A. Paton - 1890-1991. one that should consider real-world and is remembered vividly as an aggressive and current values in financial statements points out Wilbur K. Pierpont, MBA '38, inspiring educator. Among those who sat versus basing financial statements on Ph.D. '42, professor emeritus of accounting in his classroom were Roger Smith, BBA '48, historical costs. and former vice president and chief finan­ MBA '53, former chairman and CEO of "He was a pioneer in a theory of account­ cial officer at the U-M. "It's commonplace General Motors Corp.; William Seidman, ing that took in a broader view of the rele­ now, but was quite radical then. Accounting chairman of the Federal Deposit Insurance vance of economic trends to accounting^' before Raton was bookkeeping, just listing Corp.; and Lynn Townsend, former presi­ notes Stephen A. Zeff, MBA '60, Ph.D. '62, the assets and liabilities of the owners, with­ dent and CEO of Chrysler Corp. professor of accounting at Rice University out any attempt at analysis. And when he In a message to Raton on his 100th birth­ and a Raton scholar, "and tried to show the started teaching accounting on the college day injury 1989, Smith noted the "vast nature of the impact of those trends on a level, people would say it didn't belong number of people you've taught in your company On one hand it appeared he there. Economics yes, but not accounting. hundred years and helped on their way to was making accounting more subjective, To those, he'd say, 'you're welcome to come careers in the world of business. I'm very but the result was to make it more realistic!' over and take the accounting exam to see proud to count myself among their number. "His structure of accounting theory in if you can pass it!" "The lessons I learned in your class­ the 1920s was an entirely new approach'' "We will all miss him" said Gilbert R. room — not only about accounting but

22 / SPRING 1991 about life itself — gave me a solid foun­ also served frequently as an expert witness the first three individuals to be inducted dation for my career at General Motors. in public utility rate cases. into Ohio State University's Accounting A large part of whatever success I had I In fact, his energetic defense of the Hall of Fame. can trace directly back to you," Smith "Patonian" approach to accounting and William Paton was born on July 19, said. He also described Faton as "king other ideas is the basis of his legendary 1889, in Calumet, Michigan and spent of the accounting professors." status. Described by long-time friend and several of his early years on a farm. His "I think without a doubt he was the associate Howard C. Greer in an article father was a school superintendent, his finest accounting professor that our pro­ for The Accounting Review in 1965 (later mother a teacher. Despite a rigorous life, fession ever had," said Lynn Townsend, amended and reprinted in 1979 in Essays in he found time to become an avid reader MBA '41, past president and chairman of Honor of William A. Paton: Pioneer Accounting and to appreciate the value of education. the board of Chrysler and a Paton student Theorist), Paton was aggressively expound­ Used to hard work, he described his life at the U-M from 1938-41. "His mind was ing his ideas well beyond an age when in those early years. "We were all hard very keen. He was willing to challenge the most men would have retired. workers and it never occurred to us... that principles and precepts of the accounting "At an age when most of us are content we were candidates for relief by government procedures of the day' to doze in the sun'' Greer wrote, "(Paton) or other outside agency. And notwith­ "He was a character'' remembers grabs the old muzzle-loader off the wall. . . standing the mosquitoes, muck swamps Carleton H. Griffin, BBA '50, JD '53, MBA and blazes away at such targets as 'Deferred . . . and other difficulties, we got along very '53, U-M professor of accounting and former Income Misnomer^ 'Cash-Flow Illusion,' well. We didn't have oranges, but there are CEO of Touche Ross and Company, who . . . and the like. If you're tempted to say plenty of vitamins in dandelion greens, was a student of Fatoris in the late 1940s. something silly in some accounting publi­ turnips and apples!' "He set forth complex theory with simple cation, take heed of the old redhead skulk­ Although money was a problem, Paton and undeniable logic and his humor had a ing in the shrubbery — your temerity may managed to get himself through the Uni­ real bite to it. We knew we were watching fetch you a charge of buckshot in the seat versity of Michigan by waiting on tables, a living legend at work, like seeing Babe of the pants!" washing dishes in boarding houses, husk­ Ruth play in his later days." Despite a lifelong devotion to numbers, ing corn, sawing wood and other odd jobs. W. K. Pierpont, who was a student, Paton was equally adamant that a critical Sixty years after that farm boy worked associate and close friend of Raton's at the factor in the success of any professional is his way through college, the University of U-M, admired the way Paton "encouraged a command of the language. In his nineties, Michigan School of Business Administration people to do the best they could. He was after a lifetime of writing about accounting, honored him in 1976 by opening the impatient if he thought you weren't working Paton wrote Words! Combining Fun and William A. Paton Center for Accounting well, and he was a tough taskmaster. But learning (1984), which combined his obser­ Education and Research, financed entirely in a way that didn't turn you off. You knew vations on language with an accumulation by private donations from students, friends, he wanted you to do well. He brought out of his favorite word games. alumni, corporations and accounting firms. the best in people." "Words are maris greatest tool'' wrote He was also named the Edwin Francis the remarkable nonagenarian. "Words are Gay Distinguished Professor Emeritus of ierpont also remembers Paton as the basic means of moving men's minds. Accounting and Economics when he retired. "red-headed, vigorous, willing to Words, and the impressions and attitudes The School also honored him in 1955 by Pspeak his mind and a rugged indi­ associated with and resulting from their establishing the William A. Paton Fund for vidualist. When he was writing a book, he'd use, literally rule the world." accounting scholarships and fellowships. work all day at the School of Business, then After earning his bachelor's (1915), And the medal given to the candidate who take two or three bananas and an apple, master's (1916) and Ph.D. in economics attains the highest score on the Michigan and head over to Rackham and write till (1917) from the University of Michigan, CPA examination is known as the William two a.m.r recalls Pierpont. "He'd spend Faton began a career that included not only A Paton award. several nights a week like that. He was a teaching but numerous other professional Paton was preceded in death by his wife busy man. A lot to do| he'd say, 'and only activities. He founded The Accounting Review Mary K. Sleator Paton. They had three 24 hours in a day! " in 1926. In 1922, at age 32, he became the children and two survive: William A. Faton, Not content simply to present his youngest president of the American Asso­ Jr. and Margaret Paton Buttrell. There are theories, Paton was also a vigorous and ciation of University Instructors in nine grandchildren. forceful reformer, willing to defend his ideas Accounting (AAUIA) and a leader in its At Raton's request, there was no funeral in person as well as in writing. He was in successor, the American Accounting Asso­ service. Friends may wish to contribute to great demand as a speaker and appeared ciation. In 1940, he became the first aca­ the I^ton Endowment Fund, School of Busi­ many times before congressional commit­ demic to deliver the Dickinson Lecture in ness Administration, University of Michigan, tees and elsewhere on matters of economic Accounting at the Harvard Graduate School Ann Arbor, Michigan 48109-1234. policy, tax legislation and other issues. He of Business, and in 1950, he was among

Dividend / 23 Robert S. Miller, vice chairman of the Chrysler Corporation and a key player in the company's earlier restructuring.

Gregory Fox The panel was moderated by Leonard Rosen, a senior partner at Wachtell, Lipton, Rosen & Katz and a leading bankruptcy attorney He is shown here conferring with J. Ira Harris, BBA '59, senior part­ ner at Lazard Freres & Co., who founded the J. Ira Harris Center for the Study of Corporate Finance. BANKRUPTCIES, WORKOUTS TURNAROUNDS

The 5th Annual Forum and CEO of Global Marine Inc., of the J. Ira Harris Center which went through a compli­ for the Study of Corporate cated Chapter 11 bankruptcy World-class Finance proceeding. experts on From the investors' point of re companies filing view, the panel heard from methods of Chapter 11 cases Samuel Zell, chairman of the restructuring Awhe n their problems board and president of Equity a financially are not that serious? Is the Financial Management; David system overloaded? Does liti­ M. Schulte, a managing partner troubled company gation and the possibility of at Chilmark Partners, a firm discussed what's litigation play too strong a role that advises troubled firms; wrong with our in restructurings? World-class and Michael Price, president experts on methods of restruc­ of Mutual Shares Corporation, current system turing a financially troubled who was an early investor in and debated company considered these securities of troubled industries. which approaches questions and debated which The panel was moderated approaches work best at the by Leonard Rosen, a senior would work best 5th annual forum sponsored partner at Wachtell, Lipton, to bring about by the J. Ira Harris Center for Rosen & Katz and a leading constructive the Study of Corporate Finance. bankruptcy attorney Each The Forum took place April 5 member of the panel made a change in Hale Auditorium. short statement, and there was Speaking from the creditors' then open discussion among perspective was Wilbur Ross, all panelists about what's senior managing director of wrong with our current system Rothschild, Inc. who is an for dealing with troubled com­ expert on subordinated debt panies, and what they would financing (sometimes called like to see changed in the sys­ junk bonds); Peter C. Fitts, a tem. Here are brief excerpts division executive at Citibank; from the speakers' comments. and Gerald H. Turner, senior Robert S. Miller, vice-chair­ vice president of the Bank of man, Chrysler, described what America who was involved in he called "Bankers' Myopia'' the restructuring of Chrysler. which means having a single- Representing business minded focus on recovering management was Robert S. as soon as possible as many Miller, vice chairman of the cents on the dollar as possible. Chrysler Corporation and a key Creditors should be willing to player in the company's earlier accept some equity in the restructuring; and C. Russell package. He also said that in Luigs, chairman, president the Chrysler situation the intra-

Dividend / 25 1 p | : IH'II jr f 1 ! ' 1

Peter C. Fitts, a division executive at Citibank.

C Russell Luigs, chairman, presi­ Wilbur Ross, senior managing Samuel Zell, chairman of the dent and CEO of Global Marine director of Rothschild, Inc. who board and president of Equity Inc., which went through a com­ is an expert on subordinated debt Financial Management. plicated Chapter 11 bankruptcy financing (sometimes called junk proceeding. bonds).

mural squabbles between your company? If not, liquidate. Turners statements. Of the 454 various classes of lenders was Chapter 11 is very expensive." banks involved in the Chrysler "awesome." Gerald H. Turner, senior situation, he said, only 453 C. Russell Luigs, chairman vice president of the Bank of agreed. The other bank was in and CEO of Global Marine Inc., America, commented that the Iran. "They had no 'phone said that going through Chapter workout game is not so much number and no one wanted 11 is a little like running white a matter of the numbers as a to take the documents over water rapids. You can aim, but matter of group dynamics. He there in person," he said. He not control, the process. Before said that 80% of the negotia­ talked about distortions in the going through Chapter 11, tions that take place in a work­ process, and added that cred­ companies need to evaluate out are among the lending itors spend a great deal of carefully whether recovery is parties — rather than between time talking to other creditors feasible and worthwhile. the lender and the borrower. and not dealing directly with "From a management point of There were 454 banks involved the debtor. viewf he said, "You're trying in the Chrysler workout. Wilbur Ross, senior man­ to create a turnaround. Is Peter Fitts, division executive aging director of Rothschild Inc., Chapter 11a good process for in Citibank, concurred with offered the perspective of the

26 / SPRING 1991 subordinated debt holders and pany. He commented on the the many problems that go very high legal fees collected with it. There can be two or in Chapter 11 cases, and three tiers within the subordi­ wondered why the lawyers nated debt, and this com­ couldn't take part of their fees pounds inter-creditor conflicts. in equity in the restructured David M. Schulte, managing company. partner of Chilmark Partners, Samuel Zefl, chairman of remarked that in 1984, when the board and president of the junk bond machine mar­ Equity Financial Management, ried the leverage buyout, there first listed some "oxymorons" was a tremendous change, be­ that he had heard during the cause the public market then panel, including "nice sharp­ became involved in high risk shooter" "creditor consensus'' debt. He said that sensible "fast bankruptcy" and "moder­ people ought to want to avoid ate fees!' He said, "When we Chapter 11, which "takes a look at an opportunity, we business problem and turns it focus on buying and control­ into a legal case!' The question ling the company. Almost all is whether it's possible to avoid reorganizations require new Chapter 11 when there is so capital!' He added that a critical much public debt. element in a reorganization is Michael Price, president of the absence of trust between Mutual Shares Corporation, the parties. Another element is said "we look at value. We the ability to offer and create want to see a company emerge alternatives. "It's an arduous from this process." Investors process. The challenge is to David M. Schulte, a managing should not only try to maxi­ keep at it. Our average trans­ partner at Chilmark Partners, a action takes 19 months." firm that advises troubled mize their position, but also companies. look at the needs of the com­

Gerald H. Turner, senior vice president of the Bank of America who was involved in the restruc­ turing of Chrysler.

Michael Price, president of Mutual Shares Corporation, who was an early investor in securities of troubled industries. A

Dividend / 27 OURSELVES

more lor cognitive reasoning Rogels Announce and surgical skills and less for Leadership Gift ancillary services. The Southfield company's for Scholarships revenues grew at a com­ "I'd like to ask the scholarship pounded rate of 97.18 percent recipients to stand up',' said over the past five years. Future Richard Rogel, BBA 70, at a growth will be controlled as dinner honoring scholarship needed, however, to comply students and donors. At least with what Rogel says are 50 students stood up. "I think PPOM's three primary rules: that if you look at each otheif "The patient comes first, the said Rogel, "and realize what patient comes first, the patient you have accomplished, you comes first." should have no question as to After graduation from the why Susan and I have made Business School, Richard Rogel the commitment that we have. worked for several years in I congratulate you and I honor New York before coming back you." to Michigan to serve as treas­ urer of Seligman and Associates. The Rogel leadership gift He later owned and ran a represents a commitment of medical clinic, and from this $1,050,000 to the upcoming I experience he conceived the University capital campaign. idea for PPOM. The campaign, which will focus on endowment and Richard and Susan Rogel Despite the demands of annual support for students running a growing company, and faculty, will be publicly athletic scholarships. Detroit News and Michigan Rogel finds time to give exten­ announced in the fall of 1992. "The Rogels are an inspira­ Business Magazine. sive service to the University Rogel and his wife Susan tion to us',' said Dean B.Joseph Rogels early intent when he of Michigan. He is a member had just announced a White. "They have strong prin­ founded his company was to of the Business School's Devel­ $600,000 gift to establish an ciples, they have tremendous provide a forum for some new opment Advisory Board, the endowed scholarship fund to generosity, and they are com­ ideas in health care cost reim­ President's Advisory Group support undergraduate minor­ mitted to the University of bursement, according to an and the Detroit Major Gifts ity students at the Business Michigan. We are grateful article in the May, 1989 issue Committee. An accomplished School. The gift to establish the to them." of Michigan Business Magazine. athlete, he is also a devoted Rogel Scholars is in addition PPOM, the company co- The company makes fan of Michigan football. to a portion of a $5 million founded by Richard Rogel in arrangements with a network Susan Rogel shares with her life insurance policy that has 1982, in 1990 became the of health care providers who husband an interest in athletic been designated by the Rogels fastest growing privately held agree to perform services at set activities, and she is an accom­ to go to discretionary funds business in Michigan. PPOM rates. The reimbursement plished skier and bicyclist. She for the Business School, for climbed to first place, up from methods developed by the also shares his enthusiasm for the Office of Minority Affairs second place in 1989, in the firm help keep costs down by the U-M, and serves with him and for the use of the president Michigan Private 100 ranking directing the flow of payments on the Presidential Societies of the University, as well as to compiled annually by the so that a doctor is reimbursed Executive Committee.

28 /SPRING 1991 John O. Grettenberger, BBA '59, discusses quality with Business School students.

pliers and dealers are fully He supported Cadillac's integrated into our customer- pursuit of the Baldrige Award, focused quality improvement which is the nation's top qual­ efforts." ity honor, and accepted it from Grettenberger is also a vice President George Bush in president of General Motors December. Dubbed the "most and has held a number of posi­ prestigious award in American tions at the company, including business," the Baldrige is pre­ John Grettenberger, BBA '59, director of product, strategic sented annually by U.S. Depart­ Talks on the "Quest for Qualitf and business planning at ment of Commerce to those Oldsmobile; director of sales firms judged most committed John O. Grettenberger, BBA '59, lished 21 different toll free at Adam Opel AG in West to quality. Recent recipients general manager of Cadillac numbers for customers and Germany; marketing consul­ include Motorola, Xerox, IBM Motor Car Division, detailed dealers to call them. Planning tant at Isuzu Motors in Japan; and Federal Express. his company's pursuit and innovations focused on incor­ and assistant general sales winning of the 1990 Malcolm porating quality improvements manager at Oldsmobile. Baldrige National Quality and market research results Award at a talk held Feb. 19 in throughout the development Hale Auditorium. process. "Since 1985, we have almost "As part of simultaneous completely changed the way engineering, we created cross- we manufacture and advertise functional teams and em­ our product," said Gretten­ powered them," said Gretten­ berger, noting that the number berger. Their coordinated of Cadillac car competitors efforts in three recent major has increased 20% in the past styling changes trimmed five years. 50-85 weeks from what "We used to work from typically had been a 175 the top down in a traditional, week process. centralized, inward focused, Grettenberger said that management-by-objectives thinking had changed in the style'' he said, "but we saw that organization. The union is not in order to remain competitive the enemy; management is not within our market segment, the enemy. The competition is change had to occur in three the enemy and the customer critical areas: culture, customer is the prize. "We started listen­ Lee Danieison Retires focus, and product planning!' ing to our dealers and acting Culturally, the company on their suggestions'' he said. Lee E. Danieison, professor of ment of professional employees implemented simultaneous "Now dealers are included in organizational behavior and and on managerial productivity. engineering and an improved our marketing research, and human resource management, He is currently on the board partnership with the UAW. To suppliers are members of our retired this year. He joined of directors of Stirling Thermal focus on the customer, Cadillac cross-functional teams and our faculty in 1955, and over Motors, Inc., and served on the employed more sophisticated are included in our key training the years has done research board of directors of Ervin market research, and estab­ programs. In other words, sup­ on the motivation and manage­ Industries from 1970-89.

Dividend / 29 O^^ OURSELVES

either the U.S. or world appetite lecture, is to encourage and for loans can be expected to support academic research in lead to higher worldwide the financial markets of Pacific interest rates rather than to an Basin countries with a partic­ increased Japanese presence ular focus on Asia and the U.S., in world financial markets. according to E. Han Kim, chair­ One thing Gyohten was cer­ man of the Business School's tain about is that the future of finance department and the financial markets is extremely Center's director. complex because of their inter­ Gyohteris lecture was the national nature. "The current second in a series sponsored global markets are very inter­ by the Center, which was estab­ related," he said. "A crisis in lished with a gift of $3 million one country would quickly from the Mitsui Mutual Life spread to the rest!' And that Insurance Company, one of makes it extremely difficult to Japan's largest insurance com­ make accurate predictions panies. The first speaker in about the future. the series was Professor Toyoo Gyohten spoke on Japanese financial markets in the Mitsui Life The goal of the Mitsui Life Merton Miller, who won the Distinguished Lecture Series. Financial Research Center, Nobel Prize in economics the What Eole Does Japan Play which sponsored Gyohteris week after he spoke here. in Global Financial Markets? the articles in about 300 of The second in the Mitsui Life investment in the form of Searching and the journals indexed. Distinguished Lecture Series purchases of both existing was given this spring by Toyoo firms and real estate. Finding at the The Kresge Library also has Gyohten, former vice-minister Banks have now retrenched Kresge Library both the NEXIS and LEXIS for international finance at the their lending activities, and databases that can be searched Japanese Ministry of Finance, the exchange rate has stabilized. A new search arrangement by Business School students who spoke on "Recent Devel­ Consequently, capital exports that will permit multiple and faculty virtually 24 hours opments in Japanese Financial declined from $173 billion in access to ABI/lnform Ondisc a day. Another Mead Data Cen­ Markets: Global Implications!' the first 11 months of 1989 to and its companion resource, tral database, NAARS, is avail­ Gyohten is a world renowned $105 billion over the same Business Periodicals Ondisc, able evenings and weekends. expert in Japanese economic period for 1990. However, the has been installed at the Kresge LEXIS contains the full text and financial systems. He is entire decline was in the pur­ Business Administration of court cases, statutes and currently teaching at Princeton chase of bonds, primarily U.S. Library. related materials on such topics University. Treasury bonds, while direct University Microfilms has as taxation, bankruptcy, trade and labor. NEXIS contains the Gyohten noted that these investment and bank credit just installed new technology full text of over 289 business, were difficult times not only in activity remained high. to allow this expanded access financial, news and general terms of worldwide economic Gyohten said that Japan on a jukebox search arrange­ interest publications. Included developments but also for the will continue to play a major ment. The Kresge Library is to is current coverage of major domestic economy of Japan. role as a supplier of global be the test site for this new news events, trends and issues, He said that in the 1980s capital which will be financed technology over the summer. plus abstracted general news Japan emerged as a major inter­ primarily out of domestic sav­ The arrangement will allow and business articles from national financier with capital ing rather than from a large four users to access ABI/BPO additional major publications. exports increasing from $11 trade surplus. However, for the at one time. ABI contains NAARS includes the financial billion in 1980 to $192 billion foreseeable future the supply references with abstracts to portion, including footnotes, in 1989. At the same time, of global capital will be limited articles in over 800 business of over 4,000 publicly held there was a shift from indirect by Japans domestic conditions, journals. BPO contains the company annual reports. lending in the form of bond so any further expansion in same ABI database but also purchases to greater direct includes the complete text of

30 / SPRING 1991 Tamara Burgess, MBA '91, sings a revamped version of Aretha Franklin's "Think — About What You're Doing Back in School',' as one of the skits in the Fifth Annual Business School Follies.

Theme of the conference Black Business was "Determining Our Destiny: Students Hold Building Bridges Between Busi­ ness, Education, Community, 15th Annual and Politics." Proceeds from The 1991 Follies - "Saturday Night Conference the conference went to support the Alfred Edwards Scholar­ in Front of the TV Sef John Rogers, who was given ship Fund. the Entrepreneur of the Year Eight workshops and panel Award by Venture Magazine Picture "Bud the Accountant" Caddy shack and Back to School. discussions given at the con­ in 1988, and who is now the on a Saturday evening. The The 1991 Follies was a ference dealt with the follow­ founder of Chicago-based 1991 Business School Follies multi-media presentation. ing topics: Workforce 2000 — Ariel Capital Management, Inc., center around his painful life. Pre-taped segments were inter­ Fact or Fiction?; Determining was the keynote speaker at Here he is sitting in front of spersed with live action, and Our Destiny — YOU, Today's the Saturday night banquet on the TV set with his calculator commercials were shown. Leader; Effective Executive March 30, when Black alumni in one hand and his remote This year the Follies involved Strategy; Prioritizing Educa­ from all over the country con­ control in the other — and he a cast and crew of over 100 tional Values; Political vened to celebrate the 15th sees an accumulation of skits students, and was attended by Empowerment for African annual alumni conference developed by Business School nearly 1,000 people over the Americans; Breaking into sponsored by the Black Busi­ students. The 1991 Business three performances. Sports and Entertainment ness Students Association. School Follies are underway. The show was produced Management; Renewing our The skits include: and directed by MBA students Keynote speaker at the Commitment to Community The Phantom of the B-School — Diedra Thompkins and Karen luncheon was Caroline Jones, Concerns; and Attaining Entre­ A gripping saga of an ex B- Schnatterly both of whom the founder of Caroline Jones preneurial Enterprise. School gunner who fearlessly have professional production Advertising Agency in New Adding another dimension blocks an attempt by Dean and acting experience. They York, NY. She was the first to the conference were the Joe White to take over all of say that MBAs have an amazing Black woman elected vice sounds of jazz artist and flutist the Big 10 business schools. amount of talent. president of a major advertis­ Sherry Winston, who has ing agency (Batten, Barton, B-School feopardy — A member "Creativity and ability performed with such music are both really high," said Durstine, and Osborne) and greats as Roberta Flack and of the Operations Management co-founder of Mingo-Jones Club, a portico skateboarder, Schnatterly. 'Also, people are Quincy Jones. As a result of willing to do whatever it takes Advertising agency. her album "Love Madness," she and a OBHRM Professor Jesse Hill, MBA '49, founder square off for trivial supremacy to make the show work — received a nomination for an they're much more helpful of Atlanta Life Insurance Com­ NAACP Image Award as Best Rodney's Back to the B-School — than professional actors." pany, was the recipient of the Jazz Artist. A Michigan combination of alumni award.

Dividend / 31 O^^OURSELVES

Student Delegates from 35 Top Business Schools Attend Conference at U-M

Delegates representing 35 of One hundred and thirty dele­ on "The Legal and Tax Envi­ Single Market"; and the third the top business schools in the gates attended the conference. ronment"; Professor William J. was entitled "Organizing world convened at the U-M The theme this year was Adams of the U-M department Management to Operate in this spring for a conference 1992 and the European Eco­ of economics, who spoke on the Single Market." focusing on Europe 1992. The nomic Community. The keynote "Competition Policy in the Since the Graduate Business conference was sponsored by speaker was Professor Alan Single Market"; Dr. Edith Conference began in 1982 at the Arthur Andersen and Watson, chairman of City and Martin, vice president for high Columbia Business School, it Andersen Consulting business Corporate Counsel in London, technology at Boeing, who has been hosted by nine of units of the Arthur Andersen where he specializes in con­ spoke on "The Single Market the nation's leading business Worldwide Organization. sulting related to the Single and Technological Innovation"; schools/Nearly 1,000 graduate The Graduate Business Market. His talk was entitled and Paul W. Van Orden, Exec- business students have partic­ Conference (GBC) is a student- "Overview of the Single Market utive-in-Residence at Columbia ipated, dozens of corporate run event which has two major Initiative." University, who spoke on leaders have shared perspec­ parts. During one day, the Other speakers included "Single Market Challenges!' tives in GBC sessions, and the group focuses on a timely Vernon Ellis, managing partner The talks were followed by exchange of leadership initia­ issue facing the world today. for Europe, Middle East and three panel discussions: the tives (discussed in the student Another day consists of work­ Africa of Andersen Consulting, first was on "Will the Single panels) has spawned dozens shops and student presenta­ who spoke on "Restructuring Market Build More Walls or of new student programs tions allowing students to share for the New European Market"; Create More Opportunities?"; nationwide. with each other some of the Iain Stitt, managing partner of the second was on "Strategic best and most innovative ideas the Arthur Andersen EC. 1992 Organizational Issues for from their different schools. office in Brussels, who spoke Financial Institutions in the

The Michigan delegation to the Graduate Business Conference included (left to right), Mark Holman, Kirsten Nieradtka, < Stephanie Woodson and Jeff Tutde.

Michigan exchange students who attended the Graduate Busi­ ness Conference as delegates from their schools are pictured left. From left to right, they are: Ulrich Byszio of the University of USINESS Saarlandes in Saarbrucken, Germany; Bozorg Amiri of the Helsinki School of Economics; Matthias Halusa of the School of Economics, Law, Business and Public Administration in St. Gallens, Switzerland; Ulrika Carlsson of the Stockholm School of Economics; Ivo Distelbrink of the Rotterdam School of Manage­ ment; Stephan Brauer of the Uni­ versity of Saarlandes in Saar­ brucken, Germany; and David Reed, a representative of Arthur Andersen & Co.

32 / SPRING 1991 Conference Friday morning began with a talk by Takaaki Wakasugi, Alumni Board Approves Three New Awards Considers the co-director of the Mitsui Life Question 'Why Financial Research Center at Three new awards were ap­ sat in on meetings with brand the Michigan Business School proved by the Alumni Society group members, management, Do Business in and professor of finance at the Board of Governors at their and other Kraft functional Japan?" University of Tokyo. spring meeting, held March 15 groups. The Board is anxious Following Professor ^at the School. The Board de­ to expand this program to The Second Annual Japan Wakasugi's talk, a corporate cided on an award recognizing provide similar opportunities Conference, sponsored by the strategy panel featured Lorraine the class for the most signifi­ for our students at many International Business Club at F Harrington of McKinsey & cant contribution to the Annual potential employers. the Business School, addressed Company. She holds a Ph.D. Fund, the class that has the The alumni networking the question: "Why Do Busi­ from Stanford in Japanese and largest percentage of members committee reported on plans ness in Japan?" The conference Chinese history and since join­ donating, and the class with for regional alumni meetings, took place Thursday and ing McKinsey & Co. has fo­ the greatest participation in including meetings in Wash­ Friday, April 11 and 12 in cused on competitive issues reunion. The awards will be ington, DC, Detroit, Philadel­ Hale Auditorium. in the electronics industry. presented annually in the fall phia and Dallas in the spring. The theme was discussed Before joining McKinsey, she at the all-class alumni reunion The nominating committee within the framework of was an independent consultant weekend. announced that William several different disciplines, specializing in the Pacific Basin. The Board heard reports Seidman, MBA '49, chairman including marketing, corporate Also on the corporate strategy from Paul Danos, chairman of of the FDIC, will accept the strategy, product development, panel were Huddleston and the MBA Pilot Program Task Alumni Achievement Award at R&D and access to financial Will Mitchell, assistant pro­ Force and chairman of the commencement and that the markets. The conference aimed fessor of corporate strategy at accounting department, who Entrepreneurial Award will be to explore the advantages that the Business School. discussed some of the changes given to Richard Rogel, BBA 70 companies can gain from a Later, small breakout ses­ being implemented in the MBA at the Growth Capital Sympo­ business presence in Japan, sions provided conference program in the fall. Students sium to be held in May. and to consider how such ad­ attendees with the opportunity who initiated a class in "Emerg­ Board members modified vantage can be applied to the to interact with executives from ing Business Opportunities in their agenda so that they operations of a global company. Ford, National Bank of Detroit, the Soviet Union'' also gave a could attend part of the Busi­ Among the speakers was Peterson Consulting, and presentation about their expe­ ness School's first Diversity Jackson N. Huddleston, Jr., Procter & Gamble. There riences in the Soviet Union. Day Forum, which happened who gave the opening address were three breakout sessions: Some board members took to be taking place on the day Thursday evening. He is the one on marketing and product advantage of a "Back to Class" of the meeting. author of the book, "Gaijin development; one on R&D program, during which they Kaisha: Running a Foreign Busi­ and technology; and one on were able to sit in on MBA, ness in Japan!' The former vice capital markets. BBA and Executive Education president of Chemical Bank in The conference was funded classes. In some of the classes, Japan, Huddleston was one of with the help of the Center for the professors included board the key players involved in International Business Educa­ members in the discussion. introducing American Express tion; the Deans Office at the As part of the Alumni Re­ travel-related services to the Business School; the Mitsui Life source Committee, Mary Kay domestic Japanese market. Financial Research Center; the Haben, MBA 79, reported on a The closing keynote address Office of the Vice President for mini-internship she had set up was given by Durk Jager, execu­ Student Services at the Univer­ for students at Kraft, where she tive vice president of Procter & sity of Michigan; the Michigan is vice president of marketing. Gamble, who spoke about his Student Assembly, and the Entitled, 'A Day in the Life of company's experience doing Pepsi-Cola Company. KrafC the mini-internship business in Japan, and com­ consisted of a structured day mented on the insights that for three different students, experience provided. who met with managers and

Dividend / 33 «™OURSELVES

Banking. In this capacity, he Detroit Branch of the Federal and the regulatory agencies. oversaw development of a Reserve Bank of Chicago from He holds an AB from proposal to open Arizona to 1966-70. Dartmouth (Phi Beta Kappa), full interstate banking — the Seidman is also the founder an LLB from the Harvard Law first such initiative in the of The Washington Campus, School, and an MBA with Southwest. As Commission a consortium of 15 universities honors from the Michigan chairman, he successfully organized to help students and Business School. He served in pulled together consumers corporate executives under­ the US. Navy from 1942-46, and all segments of the finan­ stand the operations of the earning battle stars and the cial and regulatory community White House, the Congress Bronze Star Medal. to win unanimous support for L. William Seidman, MBA '49 the Commission's recommen­ dations. He also wrote a Alumni Board column on business for the McCracken GivesMclnally Lecture Gives Phoenix Gazette. Seidman was President "A Great Time to Be Alive — side. Our net investment Achievement Gerald Ford's assistant for Economically Speaking" was income from abroad, which Asvardto economic affairs from the title of the 24th annual had been running at about 1 L. William 1974-77. In this role he Mclnally lecture, given this percent of GNP, turned into a helped to develop a series of year by Paul W. McCracken, net outflow in 1989. For 1990 Seidman, proposals on deregulation of former chairman of the Presi­ there was probably a small MBA'49 transportation and other dent's Council of Economic net receipt, but negligible rela­ industries, providing a blue­ Advisers and the Edmund tive to the $50-60 billion that William L. Seidman, MBA '49, print for many of the deregu­ Ezra Day Distinguished Uni­ earlier relationships would was named the recipient of lation initiatives that were versity Professor Emeritus of have delivered." the Business Schools Alumni followed in President Reagan's Business Administration, To become a strong leader Achievement Award at the administration. He served as Economics and Public Policy. internationally, we need to Business School Recognition co-chair of the White House McCracken said that while solve our economic problems Ceremony in May. He was the Conference on Productivity in the U.S. economy is bogged at home, said McCracken. second winner of the award, 1983 and '84. He was special down by overspending and the "The nation is now literally which was established in 1990 assistant for financial affairs to financial pressures caused by living beyond its means," he by the Alumni Society Board Michigan Governor George the crisis among savings and said. "What the world econ­ of Governors. Eugene B. Power, Romney from 1963-66, and loan institutions, the future omy needs from the United MBA 30, received the award managed the operations of looks brighter. "History suggests States today is a Federal budget in 1990. Romney's presidential that we ought to be close to the whose borrowing requirements Seidman became the 14th campaign. low point," he said, "with the do not exceed about ten per­ chairman of the Federal Seidman was vice-chairman volume of economic activity cent of our annual savings. For Deposit Insurance Corporation and chief financial officer of in 1992 above that for 1991, 1991 this would be a Federal in 1985. He brought to the the Phelps Dodge Corporation and probably at a record level." deficit target in the range of position a record of accom­ from 1977-82, and a director However, McCracken com­ $85 -100 billion. The domes­ plishment as a businessman, of Phelps Dodge, Prudential- mented that we have a good tic economy would then be educator and public servant. Bache Funds, Catalyst Energy many challenges ahead of us. relieved from the drag on At the time of his presiden­ Development Corporation, the "We need to get the American capital formation imposed by tial appointment to the FDIC, Conference Board, and United economy more securely and the high cost of capital. he was completing his third Bancorp of Arizona. comfortably fitted into the The Mclnally lectures began year as dean of the College of He was managing partner international economic order^' in 1966 to honor the memory Business at Arizona State Uni­ of Seidman & Seidman, certi­ he said. "About a decade ago of U-M Regent William K. versity in Tempe, Arizona. fied public accountants, New the U.S. reversed its traditional Mclnally. They are supported While in Arizona, he was York, New York from 1968-74. role of being a net supplier of by an endowment fund estab­ chairman of the Governor's He also served as chairman capital to the world, and began lished by his friends to per­ Commission on Interstate (1970) and director of the drawing capital net from out- petuate his name.

34 / SPRING 1991 Three Outstanding Entrepreneurs Honored at Growth Capital Annual Symposium This year a new feature was privately held business in nearly $200 million in seed added to the annual Growth Michigan. PPOM climbed to or expansion capital. Com­ Capital Symposium which first place, up from second panies participating in the brings emerging growth com­ place in 1989, in the Michigan Symposium are thoroughly panies together with investors Private 100 ranking compiled screened, selected, and aided and business professionals. annually by the Detroit News in the development of their This year the University of and Michigan Business Magazine. presentations by the Growth Michigan Business School Capital Group, under the direc­ Alumni Society and the tion of Dr. David J. Brophy Harvard Business School Club associate professor of finance of Detroit joined the Growth at the Business School, where Capital Group to honor three he teaches courses in venture outstanding entrepreneurs. Brian Campbell, president of capital finance and investment, The three entrepreneurs are: TriMas Corporation. corporate financial policies George Brostoff, CEO of and banking. Dr. Brophy is a Symplex Communications Campbell founded TriMas member of the Michigan Corporation; Brian Campbell, in 1986 under the name Venture Capital Forum and president of TriMas Corpora­ Campbell Industries, Inc. has served on the Governor tion; and Richard Rogel, BBA with the purchase of Lake of Michigan's High Technology 70, chairman of PPOM. Erie Screw Corporation and Task Force and Commission the Di-Rite Co. Subsequently, Richard Rogel, BBA 70, on Entrepreneurship. chairman of PPOM. TriMas acquired nine busi­ The 1991 Growth Capital nesses from Masco Industries Symposium was sponsored Also at the Growth Capital in 1988, and four other busi­ by the Michigan Business Symposium, investors from nesses in 1990. It is now one School and held at the Ritz of Michigan's best performing across the country had an Carlton Hotel in Dearborn, publicly-held industrial opportunity to view presenta­ Mich. It was attended by companies. tions by CEOs of 20 or more venture capitalists, larger emerging growth companies. companies seeking strategic Rogel started PPOM, a These CEOs discussed the partners, investment bankers, preferred health care provider growth potential of their com­ private investors, and profes­ organization, in Sept. 1982, to panies and their expansion sional service firms. George Brostoff, CEO of Symplex provide a forum for some new plans. Communications Corporation. ideas in health care cost re­ In its 11 year history, the imbursement. In 1990 it Symposium has helped over JDrostoff was named became the fastest growing 300 growing companies raise Michigan's High Technology Entrepreneur of the Year in 1990. He founded Symplex in 1981 along with electronics Students Organize "Volunteer Days" engineer Jeff Jacobowitz and computer scientist Cyrus Azar. "Donate some time to help the Ann Arbor area, and run by MBA students; this year, They created a product that your community" read the ad ranged from doing business the steering committee con­ allows large companies to carry in the Monroe Street Journal career counseling talks for local sisted of both undergraduate more data, more reliably, at encouraging Business School high school students, to a and graduate business students. lower costs, over their phone students to give some time to Huron River beautification Sixteen different charitable or lines. Symplex was a present­ the second annual "Volunteer project, to a senior citizen community projects were ing company at the 1986 Days," held this year on April social event. listed for business student Growth Capital Symposium. 12 and 13. In its first year, the Volun­ involvement. All of the projects were in teer Day was organized and

Dividend I 35 KARL PEARSON DIES AT 82

The late Karl Pearson, professor emeritus of real estate education.

arl G. Pearson, professor emeritus in Trenton, New Jersey, and was widely describe Professor Pearsons class is dyna­ of real estate education, died regarded as one of the top professors of mic and very positive. His knowledge and March 6 after a short illness. real estate and land use economics in the enthusiasm for real estate were contagious, K and he was always organized and clear in A native of Lindsborg, Kansas, Professor country. He was selected by the National Pearson took undergraduate studies at Association of Real Estate Boards to develop his presentations. It was clear that he loved Princeton University before entering the syllabi for its recommended courses in the his job and real estate, and he was able to U-M Law School, where he earned his JD nationwide instructional program, and for transmit this love through his dynamic in 1930. He then joined the Firestone Tire 13 years was Dean of the Real Estate lectures so that his classes were always and Rubber Company for four years, before Institute for the state of New Jersey interesting and enjoyable. He was always moving on to become associate professor In 1967, Pearson was named to his prepared to answer any questions and of economics at Upsala College in East professorship at the Michigan Business spend time with students. I believe that a Grange, New Jersey. In 1936, he returned School, where he contributed strength good teacher is worth his weight in gold, to the Firestone Tire and Rubber Company, and vitality to both the academic and and Professor Pearson was one of the best where he served as assistant to the chair­ extension service education programs in teachers I ever had." man for six years. real estate. He was also an active participant Professor Pearson's wife, Lucy, survived After four years in the U.S. Navy during in the professional affairs of national, state him by only four weeks. She died April 3 World War II, Pearson returned to Firestone and local realtor organizations and a major at Glacier Hills in Ann Arbor. She held to work in marketing research from 1946 contributor to the development of real numerous positions on the board of The to 1948, then joined the Department of estate education programs in Michigan Ann Arbor Woman Painters, including Business Administration as professor and and the nation. He was the author of president in 1986-88. She was also on the chairman at Upsala College. In 1959, he several books and numerous articles on board of the Michigan Water Color Society became professor of business administra­ various aspects of real estate. and the Ann Arbor Art Association. Her tion and chairman of the Division of One of his students wrote a tribute to water colors have been shown in local, Business Administration at Rider College him as follows: "The best way I could state and national exhibitions.

36 / SPRING 1991 Class

9 the board of trustees of the Cleveland Play­ i4-7 5B house Square Center and the board of Maurice S. Hahn, MBA '47, Bruce D. Evans, MBA '58, directors of the Cleveland area Junior has been named an honorary member of is completing his 20th year teaching the Achievement. He is also on the board of the American Institute of Certified Public capstone course in the business environ­ directors of Ameritrust Corporation, Ameri- Accountants (AICPA). Before his retire­ ment MBA program at the University of trust Bank, in Cleveland. He lives in ment, he was a managing partner with Dallas. This final semester class offers a Pepper Pike, Ohio with his wife Charlotte, Coopers & Lybrand in South Bend. He is live laboratory project opportunity to the daughter Erica (18), and son Craig (13). president of the Pickwick Club and a past graduating students, who then give a president of the Samaritan Counseling report to the CEO of a Dallas metroplex Center of Southwestern Michigan. He has corporation. He writes, "It has been my also been a director of the Economic pleasure and privilege to guide 84 very Louis H. Knapp, MBA '68, Club of Southwestern Michigan for 30 successful such projects during this con­ is currently partner-in-charge, environ­ years. He has served on the Advisory secutive series. This course helps to mental practice for AT. Kearney manage­ Board of the Paton Accounting Scholar­ explain the UD.'s prominence in the area's ment consultants. He heads *a 100 member ship Fund for over 25 years. The competitive MBA market, as we lead eight staff dealing with critical corporate envi­ honorary member certificate is given to competitors with 1750 enrolled students!' ronmental issues, and working with the CPAs who have been members of the US. Environmental Protection Agency AICPA for 40 years. and other business regulatory agencies. His wife Elaine is a volunteer worker at f Barry Peebles, MBA '62, the national zoo in Washington, DC. His 51 has relocated from Dayton, Ohio, to the oldest daughter Leslie is a U-M graduate John H. (Jack) Hoekstra, MBA '51, Poughkeepsie, New York, area. In January, (LSA '87) now in veterinary medicine is owner of the Hoekstra Sales Co., an he joined the Marine Midland Mortgage school at Ohio State which, he says, electrical appliance and hardware store in Corporation as vice president for mort­ causes confusion on athletic weekends. Kalamazoo, Mich. He recently wrote a gage operations in downstate New York. His younger daughter Cathy is a gradu­ "Viewpoint" column for the Kalamazoo ating senior at Duke University and Gazette in which he discussed his view Jeffrey Jarrett, BBA '62, headed for graduate work in psychology that the news media encourage recessions. was awarded the 1991 -92 Outstanding at the University of Texas. He started his column by reminiscing Research Award given by the College of about U.S. economic history since his Business Administration at the University Arthur L. Schwartz Jr., BBA '67, MBA '68, great-grandfather founded the Hoekstra of Rhode Island. He is a professor (and was elected vice president and program store in 1867, and then went on to state former chairman) of the department of chairperson of the American Real Estate his case. "In recent yearsj' he wrote, "our management science at the University of Society. He will organize the eighth annual news media have played a major part in Rhode Island. In April, he was elected to meeting in San Diego in April, 1992. The starting and extending recessions. Every Phi Kappa Phi honorary. American Real Estate Society is the largest day brings forth good and bad economic academic real estate organization in the US. news but most news media stress gloom Arthur is professor of finance and real and doom . . . Many of our news media estate at the University of South Florida in have lost their credibility because they St. Petersburg. Douglas J McGregory BBA '65, have constantly cried wolf. It's time they writes that he joined the MA. Hanna Co. become positive rather than negative. The in March, '88 after a 15 year career with glass is half full, not half empty!' Rockwell International. He was appointed '"75 president and COO of MA. Hanna in May, John E. Jamerson, BBA '75, 1989. He also serves in numerous com­ writes that after eight years of investment munity and charitable capacities including banking in New York and San Francisco,

Dividend I 37 Class

he started a real estate development firm Michael X Zambricki, MBA '81, as vice president for the past four years. on the west coast of Florida. To date, he has been elected mayor pro-tem of the His position is Global Relationship Man­ says his company has developed a half city of Bloomfield Hills. He is currently ager for the bank's Fortune 500 customers million square feet of retail space in seven serving his second term of office on the who are headquartered in New York/ shopping centers. He says he's enjoying city commission, and will assume the Connecticut. ABN Amro is headquartered island living in Sarasota Bay, Florida, with mayorship in April, 1992. He practices in Amsterdam, The Netherlands, with his new bride and four month old daughter. labor and employment law with the firm $230 billion in assets. It is the 15th of Cox & Hodgman in Troy, Michigan. largest bank in the world. This past year, Robert D. McTaggart, BBA '75, He received his JD from Wayne State Friedrich was selected, along with 15 Dallas attorney, has been promoted to University in 1986. others from the ABN Amro global shareholder at his firm of Geary Stahl network, to meet with senior manage­ & Spencer, PC. Robert, who has been ment in Amsterdam. He and his wife practicing with the firm in the area of Nancy live in Norwalk, Connecticut. real estate law since 1983, recently be­ Marcjaffe, MBA '82, came board certified in commercial real writes: "I recently promoted myself to S estate law by the Texas Board of Legal president of my own firm which exists B4 Specialization. only in my imagination. It's a little game I Angela A. Bar one, BBA '84, play at home every time I receive Dividend writes that he worked for IBM as a finan­ magazine and remember that yes, I did get cial analyst from 1984 to '86, when he a Michigan MBA a few years ago. Back in moved to First Chicago Corp. in Chicago. John]. Ayaub, BBA '80, JD '83, the real world, I just finished working as a There he was an international banking has become a partner in the law firm writer and program consultant for "Seinfeld^ officer for three years and traveled fre­ of Miller, Canfield, Paddock and Stone. the NBC show which presently is seen at quently to First Chicago offices around He joined the Detroit office of the firm 9:30 on Thursdays. I am also writer and the world. He is now a full-time law as an associate in 1983. His principal segment producer for "Comic Strip Live',' student in George Mason University's practice is in federal tax law with an the Fox network show on Saturday nights. banking law program in Arlington, Va., emphasis on estate planning and tax- In addition, I'm working around the and a part-time MBA student in the George exempt organizations. country as a stand-up comedian. Look Washington University international for me in your town soon or better yet business program in Washington, DC. ask the local club to book me. A massive He expects to finish both degrees in 'SI letter writing campaign is usually effective. May, 1992 and then plans to go into In the meantime I'm taking care of my international bank management or Lisa Valo Bates, MBA '81, pregnant wife Karen (actually, she takes corporate strategy for a multinational has just had her first child — a son named care of herself — she's an obstetrician). corporation. He is now also working Bradley James. She writes that her emphasis She's due in July with our first. Regards to part-time for James Orr Associates, an in the MBA program was in personnel my classmates!' Marc and his wife live in international banking consulting firm and that she never took a class in industrial Cleveland Heights, Ohio. in Washington, DC. relations because she did not believe in the combative relationship she thought it entailed. However, she says, "after 10 years 9S5 in the business of human resource manage­ ment — including college relations, affirm­ Mara Carris, BBA '78, MBA '83, Paula Litner Friedman, MBA '85, ative action, career management, com­ was recently promoted to manager- is an associate market research manager pensation and benefits, I discovered labor corporate strategy at Ameritech and at General Foods USA, a subsidiary of relations to be the most stimulating and moved back to Chicago in April. She Kraft General Foods in White Plains, NY. demanding. I just finished negotiating a joined Ameritech four years ago with the She and her husband, Howard Friedman, three-year contract for 18,000 bargaining subsidiary Ameritech Publishing in Troy, had a baby boy named Daniel Scott on unit members of the International Brother­ Mich. Her most recent position with April 19, 1991. Paula will be on maternity hood of Electrical Workers and loved them was district manager - marketing leave until mid-July when she plans to every minute!' She is now industrial rela­ planning and analysis. In that position return to her cureent position with the tions consultant for Pacific Gas and she was responsible for competitive beverage department. Electric Company and lives in Castro strategy, pricing and planning. Valley, California. Tina Szoke, MBA '85, Friedrich Wilms, MBA '83, has taken a position with Hyatt Hotels has been working with ABN Amro Bank Corporation as the manager of data net-

38 / SPRING 1991 PhD. Notes William F. Maloney, PhD. 76, Ekhard Bmin, MBA '66$ Named President of has been appointed to the AJ. Clark Chair CofttWned Inmmme Ca Professor of Construction Engineering and Management at the University of I&ch&rd U Rwin, MBA W, has been ance to the US and Canada, Richaid, who Maryland at College Park where he is also appointed president and chief operating is a CPA, has been with the company for director of the Center for Construction officer of Combined Insurance Company 19 years He is on the board of directors Engineering and Management and of the of America. A major subsidiary of Aon of the Better Business Buieau of Chicago academic program in construction engi­ Corpotadon, an tasiiimnce holding com­ and Notthem IfaoH Combined tasusance neering and management. The graduate pany with assets in access of $10.4 bUlon, Company of America, and Combined program is designed to provide construc­ Combined bisuiance Company h a lead­ Insurance Company of New Yotk tion engineers with a background to pre­ ing writer of accident health, and life insur­ pare them to manage both construction projects and construction organizations.

John K Lehman, MBA '77, PhD. '82, has been promoted to professor of work applications. She develops and process of setting up Merchants Row accounting and information systems at supports all data network for the company, Partners, Ltd. — a venture capital firm that the University of Alaska Fairbanks. His which connects the systems in the hotels, will service the pollution control and envi­ new book, Systems Design in the Fourth sales offices, corporate offices and reserva­ ronmental management industry Ever a Generation, was published by John Wiley tions centers. She was formerly a manager Michigan patriot, his Massachusetts and Sons this year. He and his wife Lisa, in management consulting with Deloitte license plates read "Go Blue!' who is assistant professor of library science & Touche in Chicago. at the same university, have recently com­ Randall Schwartz, BBA '86, pleted a satdy of information systems John and Terry (Young) TrierweAer, has joined the Toronto office of the law research in the Peoples' Republic of both MBAs '85, firm Fraser & Beatty as an associate in China. live in San Clemente, California. He recently the tax department. He received his LLB joined Bumble Bee Seafoods in La Jolla as from the University of Toronto. business unit manager, where he reports to President and CEO Mark Koob, BBA 76. Terry is district sales manager for Bell IBS Atlantic Systems Leasing, a mainframe Alan S. Brown, MBA '89, computer leasing company. They were who was a joint degree student and married in 1988 at the cliffside gazebo in received his master of music in arts admi­ Laguna Beach. nistration at the same time he received his MBA, writes that he joined ArtSoft Management Sendees (AMS) in October, >B6 1990 after serving as executive director of Michael J. Perullo, BBA '86, the Ann Arbor Summer Festival, Inc. for worked for Coopers & Lybrand after five years. Based in Builford, Connecticut, graduation from Business School, and AMS provides planning and research earned his Massachusetts CPA license. He services to a wide variety of clients in the then worked at Fidelity Investments as a arts and entertainment industry. Since consultant, and is now in the practice of joining the firm, Alan has led feasibility public accounting as a sole practitioner studies for new arts centers in Florida, on Beacon Hill in Boston. Michael writes California, and Ohio, and is currently that he has volunteered much personal managing a nationwide study of the time to community service, including presenting industry for the Association of serving as a member of the Massachusetts Performing Arts Presenters. Society of CPAs Persian Gulf Assistance Committee, which helped returning GIs with their tax filings. He is also in the

Dividend / 39 Phase Tell Us About Yourself Deaths Francis E. Ross, We would like m include more news about alumni in Dividend, and hope you will help who taught accounting at the U-M, begin­ us ly providing us with information about youtseE WeB lite to know where you are working, ning in the first year of establishment of and other news about you, such as promotions, new business ventures, any business or the School of Business, died Feb. 16 in academic honors, authorship of hooks or articles, or other information that would be of Tucson, Arizona at the age of 94. interest to alumni, If you would like to take the time to fill out the form below and send Ross graduated from the University of it to *PririgLe Smith, Edkoi; Dividend Magazine, School of Business Administration, University Michigan in 1920, after interrupting his of Michigan, Ann Arbor; Michigan 481094234? we would very much appreciate it education for service as a 2nd lieutenant Name: ,.__ , —»„—— in the army during the first World War. He was elected to Phi Beta Kappa, went Degree(s) and Class Yeais: „>_„^^ on to earn a master's degree, and began teaching. Business Position; ____^^^ . In addition to his teaching duties, he had his own accounting business in Ann Business Address; Arbor, and served as executive secretary to the Automobile Labor Board under the Home Address: ___»„ National Recovery Administration (N.RA.) during the early years of the New Deal. Please write below some personal or business news about yourself that we can share with Following this, he joined the accounting other alumni firm of Ernst and Ernst, where he con­ tinued until his retirement. In 1958, he received the Distinguished Service Award of the Michigan Association of Certified Public Accountants, of which he was a past president. During the 29 years of his retirement, he remained active in a variety of fields. A skilled lapidary and jewelry maker, he was instrumental in popularizing caymanite, a mineral unique to the Cayman Islands, as a gem stone. He traveled widely in Mexico and Central America, visiting remote archaeological sites. He is survived by his wife, Faith, with whom he recently celebrated a 70th wed­ ding anniversary. Other survivors are three children: Emily Mullow, David, and Jamie; seven grandchildren; and eight great grandchildren.

R Timothy Ixedy BBA '57, publisher and senior vice president of Financial World Magazine, died of cancer March 23 at his home in New Canaan, Ct. Leedy spent most of his career as a sales executive at Time Inc. magazines, including Fortune, Time, and Discover. International revenues doubled at Fortune during his tenure there. He joined Financial World in 1989. "Tim was a consummate manager who taught an entire generation of magazine sales representatives to think in terms of customer service, relationships, and edi­ torial values? said Dick Heinmemann, vice president of advertising at Time Inc. m / SPRING 199 1 Heirs Apparent.

Heirs Unapparent.

Your children. Your spouse. Close friends. Relatives. Your estate plan provides for all the obvious legatees. But what about the heirs who are less apparent? What about, for example, the students of the Michigan Business School?

A growing number of our alumni are looking beyond the obvious can often make a much larger gift in their estate planning, by in­ than would be possible during cluding the Business School in your lifetime. And that gift will their bequests. have far-reaching ramifications, affirming the School's traditions, Last year, bequests accounted for preferred bequest language for touching the lives of students for 24% of all gifts received from in­ review by your lawyer. We'll also years — even generations — to dividuals by the University. Which tell you about the John Monteith come. Your bequest will literally indicates how deeply graduates Recognition Society for bequest form the bedrock of our pro­ feel about their relationship with donors. Michigan and its role in their grams, providing much-needed lives. That sentiment was proba­ dollars for faculty support, build­ If you have remembered the bly best expressed by a '57 ing renovations, curriculum Business School in your will, alumnus, who explained his gen­ initiatives, and fellowships and please use the reply card to let us erous bequest this way: "I feel so scholarships for future business know, and we'll contact you re­ strongly about the need for con­ leaders. garding the details of recognition. tinuing the Michigan educational legacy that IVe decided the Uni­ If you haven't yet made a bequest versity deserves to be a co-equal to the Business School, please estate member with my children." consider it. And if you have, please tell us about it. A bequest to the Michigan Busi­ If you're interested in making a ness School is a rare opportunity provision for the Business School to make a life-transcending gift in your estate plan, call Ken The University of Michigan — one that will perpetuate your Eckerd at 313/998-6085 or mail in Office of Trusts and Bequests ideals, your hopes, your values. the attached reply card. We'll send 301 East Liberty By providing for the Business you information about the nu­ Ann Arbor, Michigan 48104-2260 School in your estate plan, you merous giving options as well as Office of Alumni Relations NON-PROFIT School of Business Administration ORGANIZATION The University of Michigan U.S. POSTAGE PAID Ann Arbor, Michigan 48109-1234 ANN ARBOR MI PERMIT NO. 144 Address Correction Requested

The Regents of the University: Deane Baker, Paul W. Brown, Shirley M. McFee, Neal D. Nielsen, Philip H. Power, Veronica Latta Smith, Nellie M. Vamer, James L. Waters, James J. Duderstadt (ex officio)

Experimental Course Explores Business/Liberal Arts Intersection A new interdisciplinary course entitled "Global Interdependence" began last fall with Linda Lim of the Business School's international business department as coor­ dinator. The course is open to upper-level undergraduates and graduate students from throughout the University. Pictured here are the flyers sent out to advertise the course, as well as a booklet published to give an overview to other universities interested in establishing the same type of course for their students. With the aim of helping other schools interested in designing a similar course, Lim spoke at a joint national meeting of the American Association of Colleges (AAC) and the American Assembly of Collegiate Schools of Business (AACSB). Her talk was entitled, "Designing a Course in Global Interdependence: The Intersection of the Liberal Arts and Business!' For more on this innovative course, funded as a curric­ ulum development initiative by a grant from the U.S. Department of Education to the newly established Center for Inter­ national Business Education at the Business School, see page 11.