CV1BusMi_Fall 17 R6.indd 3 JOHN A ‘CANE QUELCH ON BECOMING your brands your companyand presence foryourself, Shaping thebest Media: Social
DEAN DEAN FALL 2017 B B UNIVERSITY OFMIAMISCHOOL OFBUSINESS ADMINISTRATION usiness usiness UNIVERSITY OF MIAMI SCHOOL OF BUSINESS ADMINISTRATIONUNIVERSITY OFMIAMISCHOOLBUSINESS
M M WHAT KNOW NONPROFITS NEED TO FUNDRAISING:
iami iami
11/22/17 12:52 AM
Your Employer May MATCH YOUR GIFT to the School of Business!
Take advantage of your employer’s “I have always felt it’s important to give back to my alma matching gift program to double mater, the University of Miami, so it can provide the best or even triple your donation to resources to prepare students for professional service the University of Miami School of careers in business. By participating in EY’s Matching Business Administration. Maximize Gifts Program for higher education, my colleagues and I the impact your gift can have on the are proud to support high-achieving students through the lives of students, School programs, establishment of the EY Scholars Accelerated Master of and faculty research. Accounting program.” Thousands of U.S. companies offer matching gifts. Bank of America, Microsoft, KPMG, New York Life, — Camila Cote, BBA ’94 ExxonMobil, Johnson & Johnson and EY Miami Office Managing Partner EY are just a few that are making a significant impact at your alma mater.
Contact your HR department or visit matchinggifts.com/umiami to find out if your donation can be matched! Make your gift today at bus.miami.edu/give.
UM_CorpMatchting_BusMia_FPad-1120.indd 1 11/21/17 10:53 AM
00-19_FOB Fall 17 R19.indd 2 11/22/17 9:07 PM Contents Developing Global Leaders at the Crossroads of the Americas®
VOLUME XX, NUMBER 2
DEPARTMENTS:
2 From the Dean
3 At the Forefront Lecture series brings internation- al leaders to the School
4 Thought Leadership How patients could spend less time waiting in doctor’s offices; what Your Employer May nonprofits need to know about fun- draising; the 2-degree impossibility in climate change; stress can make 2020 you spend less; Brexit may lower MATCH YOUR GIFT Europe’s GDP; consumers’ poor FEATURES:. understanding of ratios to the School of Business! 2 0 Social Media: Shaping the Best 8 Insights Presence for Yourself, Your Company How Ponzi schemes spread, why and Your Brands unexciting gift wrap is best and Faculty members on how to make the most ’Cane Quotables Take advantage of your employer’s “I have always felt it’s important to give back to my alma of what’s still an emerging frontier. 11 Out in Front matching gift program to double mater, the University of Miami, so it can provide the best Major gift supports entrepreneur- 28 Becoming a ’Cane ship and promenade, alumna named or even triple your donation to resources to prepare students for professional service School of Business Dean John Quelch vice president of Peru and more the University of Miami School of careers in business. By participating in EY’s Matching settles into his new role. Business Administration. Maximize 17 In the News Gifts Program for higher education, my colleagues and I Faculty experts on a real estate rush the impact your gift can have on the 32 Building a Culture of Health in Business in Houston, artificial intelligence are proud to support high-achieving students through the lives of students, School programs, Capitalize on health-related investments. and other timely topics establishment of the EY Scholars Accelerated Master of and faculty research. 35 Business ForUM 18 Faculty News Accounting program.” Tax reform, cybersecurity and legislation – Thousands of U.S. companies offer 40 Events working with post-election challenges. Homecoming and other happenings matching gifts. Bank of America, Microsoft, KPMG, New York Life, 38 Raising the Bar 4 3 Alumni News — Camila Cote, BBA ’94 ExxonMobil, Johnson & Johnson and How endowed chairs attract top scholars 4 8 How I Did It EY Miami Office Managing Partner and enhance student learning. EY are just a few that are making a Linda Steckley on taking The Brookings Institution global significant impact at your alma mater.
4 14 24 45
Contact your HR department or visit matchinggifts.com/umiami to find out if your donation can be matched! Make your gift today at bus.miami.edu/give. COVER ILLUSTRATION: TRACI DABERKO TRACI ILLUSTRATION: COVER
Fall 2017 BusinessMiami 1
UM_CorpMatchting_BusMia_FPad-1120.indd 1 11/21/17 10:53 AM
00-19_FOB Fall 17 R23.indd 1 11/27/17 2:29 PM [ FROM THE DEAN
Attracting Excellence
thanks to all of you whom I’ve had the school must attract and retain outstand- VOLUME XX I NUMBER 2 I FALL 2017 pleasure of meeting during the past five ing faculty – who, in turn, play a crucial DEAN months. Your warm welcome and the role in attracting outstanding students. John Quelch time you’ve taken to introduce your- I am sure that each one of you can re- SENIOR VICE DEAN selves and share your thoughts about the member one or two (or maybe more) ex- Anuj Mehrotra School of Business are much appreci- cellent professors who transformed your VICE DEANS ated. For those of you I haven’t yet had educational experience, indeed your life. Patricia Sánchez Abril Ann Morales Olazábal (MBA ’97) the chance to meet, please feel free to Every day here at the School, we see the EXECUTIVE DIRECTOR, ALUMNI RELATIONS stop by my office on the second floor of impact that our top-notch and dedicated & DEVELOPMENT the Jenkins Building. My door is always faculty are making in transforming the Nancy Hullihen open to ’Canes! lives of our students. They’re among the [email protected] I am honored to be here at the School best researchers, the best teachers, the EDITORIAL DIRECTOR Rochelle Broder-Singer of Business, working alongside so many best consultants and the best thought [email protected] talented and dedicated faculty and staff. leaders in every field of business. MANAGING EDITOR I’m also excited to be at the University We can’t attract and retain the best Amber Barry of Miami, where President Julio Frenk is faculty, or the best students, without CONTRIBUTING WRITERS taking our faculty and staff, our students your support. Please, help us raise our Karen-Janine Cohen, Lauren Comander, Peter Haapaniemi, Jeff Heebner, Doreen Hemlock, and alumni to the next level of excel- profile by following us on social media, Jennifer Pellet, Eric Schoeniger, Tracy Simon, lence. In addition, the School of Busi- becoming a student mentor, speaking in Richard Westlund (MBA ’83) ness is poised to take advantage of the one of our classes, recommending bright DESIGN DIRECTOR Paul DiMattia region’s unique style and cultural diver- young people and executives to apply PRINTING sity, as well as its position as the gateway to our programs, and sharing news about The Lane Press Inc. to Latin America and the Caribbean. the accomplishments of our faculty, EDITORIAL OFFICE Reflecting our ambition and our confi- students and alumni. Please help our University of Miami dence, for the first time ever, the School students succeed through internships or School of Business Administration 5250 University Drive of Business is advertising for faculty in full-time job opportunities. And, please Jenkins Building #317 The Economist, conducting a search for six help us raise the funds we need to be Coral Gables FL 33146 (305) 284-4052 additional chaired, tenured professors. able to offer research support to younger [email protected] We’re looking for the best and brightest faculty and scholarship assistance to the in their fields – researchers and teachers world’s best and brightest students. Any BusinessMiami is published by the University of Miami with extensive publication records in the amount of time, talent or funds that you School of Business Administration, Office of Com- top scholarly journals, strong teaching and can share makes a significant difference. munications. No portion of this magazine may be repro- duced in any form without prior permission from the course development skills, and an inter- publisher. Nonprofit postage paid at Burlington, Vt., and national perspective. This year we’re also Thank you and happy holidays, other locations; Permit #175. © 2017 by the University of looking to hire five tenure-track faculty Miami, An Equal Opportunity/Affirmative Action University. All rights reserved. members at the assistant professor level – cutting-edge scholars in their fields. These efforts are in tandem with University of Miami President Julio Frenk’s 100 Talents initiative to expand Dean John Quelch the number of endowed faculty chairs at [email protected] the University. An outstanding business
Mission Statement: To develop innovative ideas and principled leaders that transform global business and society. COVER: STEPHANIE DALTON COWAN/FLATICON.COM DALTON STEPHANIE COVER:
2 BusinessMiami Fall 2017
00-19_FOB Fall 17 R19.indd 2 11/22/17 9:07 PM Fore front
The two words students today need to know: China and code, Sir Martin Sorrell, CEO of the world’s largest advertising and marketing company, told the audience at the Schools’ first Distin- guished Leaders Lecture.
Leaders Lecture A NEW LECTURE SERIES BRINGS INTERNATIONAL LEADERS TO THE SCHOOL OF BUSINESS BY ROCHELLE BRODER-SINGER
WPP CEO SIR MARTIN SORRELL: IN A PACKED STORER AUDITORIUM this fall, the CEO of the world’s 10 KEY GLOBAL TRENDS IN MARKETING largest advertising and marketing services company, WPP, discussed the ways that players from Facebook and Google to Alibaba and Uber are re- Shift to East, South and Southeast shaping the marketing landscape. Sir Martin Sorrell, who founded WPP Overcapacity and shortage of in 1985, provided a powerful kickoff for the School’s new Distinguished human capital Leaders Lecture Series. Rise and rise of the web The series offers alumni, students, faculty and staff an opportunity to Historic growth of retail and hear from leaders of some of the world’s most influential and interest- now e-power ing organizations. In addition to the head of WPP (whose subsidiaries Importance of internal communications include J. Walter Thompson, Ogilvy & Mather, Hill+Knowlton and Global and local structures Burson-Marsteller), the series has already included Scott Barshay, global Relative power of finance and head of the mergers & acquisitions practice at Paul, Weiss; and Chinese procurement private equity entrepreneur Ming-Po CAI, founder and president of Growth of government Cathay Capital Private Equity. Acceptance of social responsibility “This is just the beginning,” says School of Business Dean John and purpose Quelch. “We’re aiming to bring the best leaders in the world to share Industry consolidation and their wisdom with the Miami community.” convergence Upcoming Distinguished Leaders Lecturers include Harvard Business School digital marketing expert Sunil Gupta (Nov. 28); entrepreneur and Vaxess Technologies CEO Michael Schrader (Dec. 5); David Kenny, Full articles on Sir Martin head of IBM Watson and Cloud Platform (Jan. 16); Vanguard Group Sorrell’s lecture and all other CEO William McNabb III (Feb. 20); and American Red Cross CEO Gail Distinguished Leaders Lectures McGovern (March 22). and registration/up-to-date schedule for upcoming lectures: “There’s something new happening at the U,” Quelch says. “I hope bus.miami.edu/lectures all our alumni and the greater Miami business community will join us for
GORT PRODUCTIONS GORT the opportunity to learn from these outstanding leaders.”
Fall 2017 BusinessMiami 3
continued on page 11 00-19_FOB Fall 17 R19.indd 3 11/22/17 9:07 PM Thought Leadership RESEARCH WITH AN IMPACT
Previous research has found that wait times to get an appointment average 19.5 days for primary-care physicians and longer for some specialists. When patients have to wait that long, they sometimes decline to make an appoint- Zacharias ment – a phenomenon known as “balk- ing.” Then they may not be getting the health care they need. At the same time, after patients make appointments, they sometimes don’t show up for them. To keep their schedules full, practices tend to overbook. Doctors also sometimes have unscheduled emergency appointments. And, they sometimes have to spend more time with a pa- tient than anticipated. All that results in patients sitting in the waiting room past their scheduled appointment times.
Physician, Queue Thyself To conduct his research, Zacharias took a purely math- ematical approach, applying queuing theory and stochastic optimization. He factored in the two types of waiting, balking behavior, patient no-shows and the random length of appointments. He also considered “panel size,” the total number of patients who are regular customers of a practice. “A good pane size strikes the right balance between pro- ductivity and competence to provide timely access to care,” Zacharias says. “And other studies have shown that panel size can affect health outcomes.” Doctor Visits: You Should Ultimately, Zacharias found the most effective approach to Spend Less Time Waiting patient scheduling at outpatient clinics is an “open access” A SMARTER APPROACH TO APPOINTMENT SCHEDULING CAN paradigm in which patients are offered the opportunity for a IMPROVE ACCESS TO HEALTH CARE – AND OTHER SERVICES. same-day or a next-day appointment with high probability. BY ERIC SCHOENIGER “The result might be that clinics are very busy on some days and not busy on other days,” he says. “In the long run, the appointment delays at doctors’ offices cost patients and benefits from providing timely access to care outweigh the medical practices alike in lost time, lost money, poor drawbacks from occasionally overbooking capacity.” Signifi- customer satisfaction, reduced access to health care and, cantly, the mathematical model shows that this same-day or potentially, worse health outcomes. But, when it comes next-day approach should address delays in making an ap- to scheduling patients, many medical practices are doing pointment and at the doctor’s office. It should also measur- it wrong, according to research by Christos Zacharias, as- ably reduce patient balking and patient no-shows. sistant professor of management science at the School. These findings could apply to any service business that makes appointments with customers who come on-site. Two Types of Waiting “Customer wait time is an important aspect of many There are two types of waiting in outpatient clinics: how businesses, from medical care to retail,” Zacharias points long patients must wait to get an appointment and how long out. “In a medical setting, it can have an impact on health they must wait to see the doctor once they’re at the clinic. outcomes. But in any business, it can have an impact on Zacharias looked at both types of delay in a joint framework customer experience and business success.” and how one affects the other. “One of my academic areas The results of Zacharias’ research were published in the of expertise is queuing theory, the probabilistic study of paper, “Joint Panel Sizing and Appointment Scheduling in waiting in lines,” he explains. “Outpatient care suffers from Outpatient Care,” in the November 2017 issue of Manage- many inefficiencies and is an area that can benefit from ment Science. The paper was co-authored with a colleague
queuing theory at both a tactical and strategic level.” at the Leonard N. Stern School of Business. DABERKO TRACI ILLUSTRATIONS:
4 BusinessMiami Fall 2017
00-19_FOB Fall 17 R19.indd 4 11/22/17 9:07 PM Fundraising: What Nonprofits Need to Know INDEPENDENT-MINDED DONORS DON’T RESPOND WELL TO TYPICAL PUBLIC APPEALS, AND BEAUTIFUL SOLICITATION MATERIALS COULD BE HINDERING DONATIONS. BY TRACY SIMON
when fundraising, the content, style and appearance of a solicitation all make a significant difference in whether and how much someone gives. New research from School of Business faculty members shows that nonprofits must Modest Solicitation Materials be careful not to appear to spend too much money on Lead to More Donations solicitation materials, and they must be willing to change New research by Claudia Townsend, the language of their “ask” based on how independent or an associate professor of marketing at interdependent a potential donor is. the School, examined the connection Townsend between the overall design of solici- Why Public Appeals Can Fall Flat tation letters and fundraiser invitations, and how beautiful It has long puzzled fundraisers why, materials can cause the recipients to give less or nothing in any appeal, some people eagerly to the organization. (Prior marketing research has, for the jump in with the throng to make most part, focused on the language used in donation solici- a donation, while others, who are tations.) She found that high levels of expensive-looking Laran equally passionate about the cause, design elements for solicitation materials can be a turnoff will reject the same pitch. Research from Juliano Laran, in the “ask” environment. a professor of marketing at the School, has found that Townsend identified two types of design elements in people whose self-definition includes a strong streak of solicitation materials: independence sometimes balk because giving during an Type 1: Those that cost more to make the element better look- appeal seems too much like following the crowd. “If asked ing, such as gold ink or thick paper. to donate at a grocery-store checkout, for example, people Type 2: Those that do not cost more to make the element bet- with a greater sense of independence may decline,” he ter looking, such as a nice font or better use of color. explains. “By contrast, people who place a high value on interdependence will often respond positively. They The research, which will be published in the Journal of think, ‘other people are giving, I want to be part of that Consumer Research, explored how these two differing aes- movement, I want to help.’” thetics influence donation response – both in the lab and in People who see themselves as independent often view the field. One study, in partnership with a Miami chapter public appeals as social pressure to be like everyone else, of a national nonprofit, sent different designs of its annual and they resist conforming to others’ expectations. They gala invitations to different constituents. Some potential want to give, but more privately, Laran explains. donors received an invitation that was good looking but The research asked people a series of questions about didn’t look expensive. Others received a version that was how they view themselves and about their giving patterns. better looking than the other and appeared more costly. It found that sometimes the difference between someone’s Resulting ticket sales and subsequent donations revealed willingness to give, or not give, originated in how the ques- that the attractive but less-expensive-looking invitations tion was worded. People who perceive themselves as more yielded approximately $88 in donations per invitation, resistant to others’ influence are more likely to give if the while the better-looking and more-expensive-looking invi- “ask” makes it clear that it’s their choice and that they’ll be tation yielded only $19 in donations per invitation. quiet leaders by doing so. “For those asking for monetary gifts, the optimal solicita- Laran’s study, co-authored with colleagues at Western tion is not the most beautiful, but rather the one offering high University and the Sauder School of Business at Univer- levels of overall beauty without significant cost implications,” sity of British Columbia, was published in the Journal of Townsend says. “It would be smart to also think about this Consumer Research. effect when designing thank-you notes and gifts – another spend that could also be perceived as wasteful.”
Fall 2017 BusinessMiami 5
00-19_FOB Fall 17 R19.indd 5 11/22/17 9:07 PM THOUGHT LEADERSHIP
the Journal of the Association of Environmental and Resource Economists. The article, “Probabilistic Stabilization Tar- gets,” was co-written with a colleague at Ohio University. The researchers determined that it can be difficult to predict how climate will respond to changes in green- house-gas emissions. Given that uncertainty, they found that instead of a rigid 2-degree cap, a more effective approach – from both a cost and outcomes perspective – to minimizing climate change would be flexible targets related to reducing greenhouse-gas emissions. “It’s almost impossible to achieve a precise 2-degree target,” Kelly says. “So governments will either take far too little action in reducing greenhouse-gas emissions, or they’ll spend far more than they need to.”
Hazy Forecast Where did the 2-degree target come from? The average temperature on Earth remained stable for some 10,000 years. So did the amount of carbon dioxide in the atmo- sphere. That began to change after the Industrial Revolu- tion, with carbon dioxide levels and temperature both creeping upward. By 2015, the average temperature was a little under 1 degree Celsius higher than in preindustrial times. Climatologists began asking: How much warming can Earth experience before the effects are disastrous for humanity, with rising sea levels, longer droughts and more intense storms? Eventually, they coalesced around a target of 2 degrees Celsius. But it’s not that simple, Kelly suggests. “The climate is a complex system with many uncertainties, including how sensitive the temperature is to carbon concentrations in the atmosphere,” he says. Some of those uncertainties are caused by two issues that affect climate: drift and inertia. The 2-Degree Impossibility “Once the climate gets going on a certain path, it becomes CLIMATE ACCORDS AIM TO KEEP GLOBAL TEMPERATURES progressively harder to steer it off that path,” Kelly explains. FROM RISING MORE THAN 2 DEGREES, BUT RESEARCH For example, let’s say that as the temperature continues to SHOWS IT’S ALMOST IMPOSSIBLE TO ACHIEVE SUCH A PRE- rise, polar ice melts and reflects less sunlight back into space. CISE OUTCOME. BY ERIC SCHOENIGER That would cause the temperature to rise even more. In addition, while climate change is a long-term trend, the paris climate accord, adopted in 2015 and ratified short-term variations are caused by random weather by at least 168 nations, aims to cap global average temper- shocks. So the average temperature could appear to be ris- ature at 2 degrees Celsius above preindustrial levels. To ing or falling over a period of a few years without reflect- achieve that goal, governments will spend many billions ing what’s actually happening in the long term. of dollars on reducing emissions of greenhouse gases such as carbon dioxide. But what happens Flexible Targets Make More Sense if they miss their targets? And is an Kelly conducted his research using climate data from increase of less than 2 degrees even the United Nations and applied a climate-change model the right goal? that accounts for the uncertainties he identified. He then Those are some of the questions looked at a variety of scenarios, each of which required raised by David Kelly, a professor of multiple days of computations by a supercomputer at the economics at the School, in research University’s Center for Computational Science. In the Kelly described in the June 2017 issue of scenarios, governments often missed the 2-degree-or-less DABERKO TRACI ILLUSTRATION:
00-19_FOB Fall 17 R19.indd 6 11/22/17 9:07 PM target by a wide margin, while Stress Can Make You Spend Less published in the January incurring substantial costs along 2017 issue of the Journal of the way. STRESS LEADS CONSUMERS to Monetary Economics. That doesn’t mean govern- pay for necessities instead of “Our finding should be a ments should do nothing, though. splurging on non-necessities red flag for the European Kelly notes that, although the because doing so gives them Hai Union and the UK, showing climate is difficult to control a sense of restored control, that the Brexit talks should in the short run, the scenarios Laran according to research from ensure that the difficulty of cross-border financing showed that a sustained reduc- Juliano Laran, a professor of does not increase because of political changes,” tion in greenhouse gas emissions marketing at the School, and a colleague from Rut- Chakraborty says. – Tracy Simon over time did eventually achieve gers University. “At the point of purchase, people who the 2-degree-or-less warming tar- are stressed become more strategic with their spend- Poor Understanding of Ratios get. The key was to continue to ing,” Laran explains. “Especially with a high level of Leads to Bad Shopping Decisions gather information and incorpo- stress and a low level of control, this is when we fight rate it into planning. He suggests the most to restore control by saving money.” Consumers make poor that, rather than set a rigid goal Their research showed that, under stress, people purchase decisions when of keeping temperatures within 2 want to save money, and when they have to spend, they need to work with degrees Celsius above preindus- they spend more on necessities than non-necessi- ratios to assess a product’s trial levels, governments “should ties. “We found stress causes us to go into ‘survival value, according to a study re-evaluate the situation every mode’ and impacts us when shopping, causing us Tsiros by Michael Tsiros, the chair few years and adjust the target to protect our resources,” Laran says. “Also, the and professor of marketing based on new data.” According to root of the stress matters. For instance, people who at the School. When consumers must average ratio Kelly’s model, setting goals that said they were stressed about a current job situ- information, such as comparing the fuel efficiency better account for the uncertainty ation were less likely to spend money on clothes, of two cars using the ratio of miles per gallon, they of climate change – such as more but others stressed about starting a new job were often flub the numbers by incorrectly assuming the stringent reductions in carbon more likely to spend on clothes. This occurs because mathematic equation to find miles per gallon would emissions – would also reduce clothes become a necessity, especially when we have be to average the sum of the mileage of both cars the costs of complying with those a new job.” and then divide by two. Comparing two ratios actu- requirements. The research was published in the October 2016 ally requires a more complex equation. This incorrect Kelly concedes that govern- issue of Journal of Marketing Research. way of crunching the numbers leads to only 25% to ments and businesses might resist – Tracy Simon 30% of shoppers getting the correct answer. the sense of uncertainty in such “Whether the decision is about allocating funds an approach. “But the 2-degree Brexit May Lower Europe’s GDP properly to a 401(k) plan or finding a washer and target gives only a false sense of dryer that uses a lower ratio of water per load, this certainty, because the actions you Findings from two faculty members raise a red flag re- study points to the significant need for something take will end up being wrong,” garding Britain’s exit from the European Union. If the like a ratio calculator, maybe in an easy mobile he says. “Climate change has too terms of the exit lead to reduced cross-border lending app,” Tsiros says. The study, which he conducted much uncertainty and inertia to within the region, all of Europe could see its GDP fall. with a colleague from Texas A&M University, was be controlled with the precision Indraneel Chakraborty, assistant professor of published in the May 2017 issue of the Journal of implied by [these] targets.” finance at the School, andRong Hai, an assistant Marketing Behavior. – Tracy Simon professor of economics, examined the impact of re- duced cross-border lending in the wake of the 2008 financial crisis. They found that, while policymakers may have intended this change in lending patterns to reduce systemic risk, it also resulted in a GDP loss of 90 billion Euro ($97 billion) for the continental European economies. The work, done with colleagues from the University of Oslo and Ecole Polytechnique Chakraborty Fédérale de Lausanne, was
Fall 2017 BusinessMiami 7
00-19_FOB Fall 17 R20.indd 7 11/24/17 11:41 AM Insights NEWS FOR YOUR BUSINESS LIFE
Social Contagion Rantala found that information about the WinCapita scheme actually spread epidemically. That is, it followed a typical s-shaped “epidemic curve,” in which member- ship built slowly at first until it reached a tipping point and then grew quite rapidly. “This is comparable to how an infectious disease or a computer virus spreads,” Rantala explains. “So it suggests that we can use an epidemic model to characterize the word-of-mouth spread of ideas.” Rantala also found that, while most members of the Win- Capita scheme had only a few connections, a small number were “hyper-connected” and attracted a large number of new members. In technical terms, this is known as a “scale-free connectivity structure.” This differs from ran- domly formed networks, in which all parties have a similar Ponzi Through the Grapevine number of connections. “We see the scale-free connectiv- HOW INVESTMENT IDEAS – LEGITIMATE OR ILLEGITIMATE – ity structure in all types of social networks,” Rantala notes. SPREAD THROUGH SOCIAL INTERACTION. “These highly connected people are crucial to the spread BY ERIC SCHOENIGER of ideas. And this structure tends to make ideas spread much more quickly than they would otherwise.” the fraudulence of Ponzi-schemes investments – in Among Rantala’s more interesting findings were details which returns are generated for earlier investors through of how word-of-mouth investment information tends revenue paid by later investors – seems self-evident. So to flow: from higher-income investors to lower-income why do so many people fall victim to them? And why investors and from older to younger. “This gives us insight do the schemes seem to spread so effectively? By word into how people respond to word-of-mouth investment of mouth, of course – whether in person or via social information,” Rantala says. “People tended not only to in- media. Ville Rantala, assistant professor of finance at the vest, but also to invest larger amounts of money, when the School, has explored just those questions in work that information came from a person who was wealthier, more he’s presented at venues such as the University of Miami highly educated or older.” One takeaway is that when Behavioral Finance Conference and in seminars at more people make investments based on word-of-mouth infor- than a dozen universities. mation, they may follow a psychological process known as Rantala’s research was influenced by Robert J. Shiller, “question substitution.” “When faced with the difficult winner of the 2013 Nobel Prize in Economics, who question, ‘Do I trust this investment?’ they replace it hypothesized that investment ideas spread like epidem- with the easier question, ‘Do I trust the person telling me ics. “Word of mouth is important in this context, because about this investment?’,” Rantala explains. people pay attention to the financial advice of family, Finally, while the investment Rantala studied was a Ponzi friends and co-workers,” Rantala explains. “But it has scheme, the same factors can be at work in the spread of other been hard to get data on how this affects investment word-of-mouth investment information, whether or not the decisions, because we can’t easily observe this.” Rantala investment is fraudulent. That could offer valuable insights to identified a unique source of relevant data: a Finnish financial services firms, regulators and investors alike. Ponzi scheme called WinCapita that between 2003 and 2008 collected€100 million Euros from more than 10,000 WORD-OF-MOUTH INVESTMENTS READ THE FULL PAPER: members, making it the largest fraud in Finnish history. magazine.bus.miami.edu Two aspects of the WinCapita fraud made it particularly Spread epidemically: membership builds slowly, useful to Rantala. First, new members could join only if reaches a tipping point, then grows rapidly they were invited by an existing member, meaning that access to the scheme could spread only through word A small number of hyper-connected people of mouth. Second, the subsequent police investigation causes ideas to spread more quickly yielded 53,000 pages of documents, including interviews Flow: with 3,000 members. That gave Rantala a window into Higher income investors ¬ lower income investors individual investors, how they were connected to other Older investors ¬ younger investors
investors and how much they invested. MIRMAN ALISON ILLUSTRATION:
8 BusinessMiami Fall 2017
00-19_FOB Fall 17 R20.indd 8 11/24/17 11:41 AM leads to disappointment. “If you and unexciting wrappings. “For raise expectations about what’s example, a recipient is likely to inside with fancy wrapping, the be much happier and like the gift recipient will feel disappointed,” a lot better if it’s in simple brown Keep Your Gift Wrapping Under Wraps she says. “Is my mother go- wrapping,” she says. THE LESS EXCITING THE WRAPPING, THE MORE THE RECIPIENT WILL ing to think I’m giving her a Khan’s findings, which earned LIKE YOUR GIFT. diamond pendant just because her a 2017 UM Provost’s Re- BY LAUREN COMANDER it’s wrapped in Tiffany colors? search Award, come with one Probably, but people don’t think caveat: “When a gift is something IF YOU’RE FEELING PRESSURE to “People believe that wrapping about it – they just think they really good, good wrapping does step up your gift wrapping as a gift is a good thing, and it fea- wrapped it nicely.” not hurt, since the high expecta- the holidays near, then wrap tures very prominently in holiday The gift-wrapping industry is tions set by the fancy wrapping your mind around findings by traditions,” Khan says. “They a robust one, with consumers are likely to be met. However, Uzma Khan, associate profes- think the recipient will appreciate spending billions annually on people are generally very bad sor of marketing at the School. the time, money and creativity wrapping paper and embellish- at predicting what someone will Drop the bows and the carefully that goes into wrapping a gift, ments, Khan says. But Khan’s like,” says Khan, an expert in con- crafted corners and keep things but it’s just the opposite.” In- findings put a wrinkle in the sumer behavior. Hence “the safe simple, she says, or you’ll be stead, the fancier-looking the gift instinct to tie it with a pretty bet is to not invest so much time setting the gift recipient up for wrap, the higher the expectations bow. So what’s a gift-giver to do? and effort in that fancy wrap- disappointment. for the gift – which almost always Khan recommends using simple ping,” she says.
INSPIRING DONORS
From the day Kelly Calisto stepped foot onto the University of Miami campus as a freshman on academic scholarship, she loved everything about the University. Calisto decided she would donate regularly so others could enjoy the same experience. “Although it may be a long time before I’m able to donate as much as I was given, every little bit helps,” says Calisto, who has given every year since she was a senior. Calisto, a CPA and audit manager at Grant Thorn- ton, makes her contributions go even further by taking advantage of the company’s match program. “Grant Thornton matches my donation dollar for dollar, so I’m able to get that additional advantage for the University.” Kelly Calisto A member of the UM Citizens Board and an active recruiter for her company on campus, Calisto visits BBA ’09, MPRA ’10 frequently. “I love being involved,” she says. “There’s a dynamic energy on campus that makes it a really excit- ing place to be.” Calisto is also a long-time football and basketball season ticket holder. “Win or lose, I love to support our teams. Go ’Canes!”
Fall 2017 BusinessMiami 9
00-19_FOB Fall 17 R19.indd 9 11/22/17 9:07 PM INSIGHTS
“[Hedge fund activists] ’Cane Quotes are incentivized to be KEY QUOTES FROM SOME OF THE very aggressive and WORLD-CLASS LEADERS WHO HAVE leave other shareholders SPOKEN AT SCHOOL OF BUSINESS holding the bag if their EVENTS grand theories don’t work out.” – Scott Barshay, Global Head for Mergers & Acquisitions Practice of law firm Paul, Weiss “Art of the Deal: How to Navigate Com- plex Mergers and Acquisitions,” School of Business Distinguished Leaders Lecture Series, Oct. 16 “We are now entering the cognitive comput- ing era, which will help accelerate develop- ment timelines and deliver more personal- ized health care, so that people are healthier and happier and lead longer, more productive lives. … “People tell me that Both patients and physi- Google and Facebook cians are fearful about must be eating your robots taking over, but lunch, but in fact they we see AI as a new tool, are our first and third like a stethoscope, to largest media partners. help in the prevention, … But one of the most diagnosis and treatment important trends in the of disease.” marketing sector is the – Tina Moen, Deputy Chief Officer, IBM continued low cost of Watson Health capital, which makes it “Role of IBM Watson and Intersection of easier for newcomers Data and Technology,” Latin American to compete with the Innovation Forum (LIFE) 2017: Advancing world’s top brands.” Access to Healthcare, June 9 – Sir Martin Sorrell, Founder & CEO of marketing/advertising giant WPP “The Big Questions in Marketing, Adver- “Patients need access tising and Digital,” School of Business to good health care Distinguished Leaders Lecture Series, regardless of income. Oct. 5 Accessibility without quality is simply irresponsible.” Stories and videos from – Enrique Ruelas, MD, former vice these and other events: minister of health for Mexico magazine.bus.miami.edu Latin American Innovation Forum (LIFE) 2017: Advancing Access to
Healthcare, June 9 MIRMAN ALISON ILLUSTRATIONS:
10 BusinessMiami Fall 2017
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Alumna Named Prime Minister of Peru BY ROCHELLE BRODER-SINGER
In September, Peruvian President Pedro Pablo Kuczynski named School of Business alumna Mercedes Araoz (MA ’91) as the nation’s prime minster. The appointment was part of a cabinet shuffle that saw Araoz promoted from the position of second vice president about a year into Kuc- (Left) Business Plan Competition winner and dedi- zynski’s term. Peru’s prime minister cation speaker Kelly Pierce (BSEd ’08, MSEd ’12), Senior Vice Dean Anuj Mehrotra, Eugene Frenkel is head of the nation’s 13-member (MBA ’12), Steven Finker (a School of Business Council of Ministers. student) and UM President Julio Frenk. (Above) Araoz, who is an economist by train- The Finker-Frenkel Family Promenade. ing, has held a number of key cabinet positions in Peru, including minister Major Gift Supports Entrepreneurship, Promenade of finance and economics, minister of FINKER-FRENKEL LEGACY FOUNDATION FUNDS BUSINESS PLAN COMPETITION foreign trade and tourism, and minis- ENDOWMENT AND MORE. BY LAUREN COMANDER ter of production.
THROUGH A SIGNIFICANT GIFT, the Finker-Frenkel (BBA ’18) and Chester Montefering (BSIE ’18), Legacy Foundation created the Business Plan cofounders of Therion PC. Last year, they won the Competition Endowed fund, which will forever $10,000 Grand Prize in the undergraduate stu- finance the annual University of Miami Busi- dent category for their idea to build and market ness Plan Competition, hosted by the School water-cooled PCs to gamers. Gantt and Montefer- of Business. The foundation’s gift also financed ing used their winnings to diversify their product renovations of the School’s outdoor gathering line and build more powerful computers, and now and study space, which was dedicated Nov. 14 as they’re working on a website where they will sell the Finker-Frenkel Family Promenade. their products. “The computers we are building Now in its 16th year, the Business Plan Competi- are expensive, and I don’t have $5,000 in my tion awards nearly $50,000 in prize money an- back pocket to put into this,” Gantt said. “We’re nually to University of Miami students and alumni designing the computers from the ground up, and to help them launch or grow startup ventures. that takes trial and error. The money allowed us “My family came here 25 years ago with $100 to go all out in the design process to make it look in their pockets and were able to build a major as cool and be as powerful as possible!” multinational business because of their entrepre- During the dedication, Frenkel shared that his fa- neurial spirit and the environment this country has vorite addition to the Finker-Frenkel Promenade is provided to them,” said Eugene Frenkel (MBA ’12), an oversized screen – one of the largest at a busi- co-director of the Finker-Frenkel Legacy Founda- ness school in the U.S. It will carry live feeds from tion and CEO of Legacy Group of Companies. “The Storer Auditorium, among other uses. Standing in entrepreneurial spirit is extremely important, and front of the screen, he reminisced about his days we want to foster those values and create that as a student, singling out his favorite professor, environment for the students at the U,” he added Anuj Mehrotra, the School’s senior vice dean, vice as he addressed a crowd that included University dean for faculty development and research and of Miami President Julio Frenk, School of Business Leslie O. Barnes Scholar and professor of manage- Dean John Quelch and several past Business Plan ment science. Mehrotra later told the crowd: “As a Competition winners. professor, I take great pride in his success, and this Students whose lives were changed by the gift is particularly impactful because it supports Business Plan Competition include David Gantt student ideas and innovations.”
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BUSINESSMIAMI ONLINE Puzzles for Science Find web-exclusive stories, video, photo galleries and more FACULTY MEMBERS’ MOBILE GAME AIDS SOCIAL SCIENCE at magazine.bus.miami.edu. Share stories with others, RESEARCH. BY JEFF HEEBNER browse and search back issues of BusinessMiami and access all the links mentioned in this issue. School of Business economics faculty members Alex Horenstein and Konrad Grabiszewski are changing the research game with mobile experiments. They created Blues and Reds, the first gaming app specifically made for collecting research data. The puzzle game, available worldwide on iOS and Android, is helping Horenstein and Grabiszewski better understand which interactive problems players are able to solve and, consequently, to discover what makes one interactive problem more complex than another. Players who download the app provide their home coun- try, age and gender. By studying the playing behavior of us- ers, the professors can identify which demographic groups make the most logical and illogical decisions in interac- tive situations. “The main objectives are to identify the percentages of users who are able to win levels in Blues and Putting Business News Reds, and also to understand what determines these per- in Context … en español centages,” says Grabiszewski, a visiting assistant professor of economics at the School. Doing so will allow scientists to Jose Sevilla (above), a business technology lecturer at the School, examines Broad- develop better theories of interactive behavior. com’s bid for Qualcomm; Alejandro Ruelas-Gossi, a management lecturer, discusses “Technology is already in the hands of people, which NFL player protests during the national anthem; and more video clips of faculty means that with the right tool, scientists have access to sharing their expertise on “CNN Dinero.” millions of people,” Horenstein says. “Blues and Reds is just the beginning of this new and fascinating chapter in Latin American social sciences.” Forum, Leadership Lectures and More Video from many of the discussions, lectures, presentations and confer- ences hosted by the School can be found online. Share in the insights from outstanding leaders.
What’s New @ the U School of Business junior Connor Whit- tum is one of your guides in a short video series that tours the most recent addi- tions to campus.
Dean John Quelch on Video He talks about what brought him to Miami Learn more and from Harvard, what sets the School of download Blues and Reds in the App Store Business apart and opportunities ahead. and Google Play: bluesandreds.com
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bermont/carlin scholar Blake Sper- ling is one of a small group of juniors interested in careers in the financial services industry who are chosen to participate in specialized training, workshops and networking opportuni- ties, including the School’s New York trip. “Going on the trip was incredi- ble!” says Sperling (pictured in far left photo, center, wearing a yellow tie). “[It was an incredible] opportunity to meet with over a dozen of the leading financial institutions while living in a hotel alongside some of the smartest professors in the business school for five days.” In addition to the opportunity to interact further with School faculty, Sperling also took advantage of net- working and learning at every stop on the trip. “I built a lot of amazing con- nections and relationships … whom I’ve spoken with at several different times since the trip,” he says. “This Top: Bermont/Carlin Scholars at UBS, hosted opportunity … it’s only possible at a by Mike Belasco (BBA ’98). Bottom left: school like UM, because of our small Bermont/Carlin Scholars in Midtown Manhat- size and financial flexibility.” tan. Bottom right: Goldstein-Milo Marketing That financial flexibility is part of Scholars at Global Brands Group, with host the reason Sperling, a Los Angeles Jason Rabin (BBA ’92). native, was able to attend the School of Business at all. He has several scholarships from the University and the School, including the President’s ’Canes Storm New York Scholarship, the Edward and Ruth ALUMNI, OTHERS HELP STUDENTS GET AN UP-CLOSE LOOK AT CAREERS IN Irwin Endowed Scholarship and the FINANCE, REAL ESTATE AND MARKETING Esther Becker Scholarship. “Without the generous scholarships that I’ve received, I definitely would not have Nearly 40 undergraduate students spent several days in New York in September, exploring future been able to attend Miami,” he says. careers during the School’s annual New York trip. One group, Bermont/Carlin Scholars, gained in- “And I think I’ve been exposed to sight into real estate and finance careers through visits with leading companies in those industries; endless opportunities I would likely while the other group, Goldstein-Milo Marketing Scholars, learned from companies that own and never have had the chance [for] by work with some of the world’s top brands. going elsewhere.” The Bermont/Carlin Scholars trip is funded by a donation from Richard B. Bermont and Adam E. Carlin (MBA ’94), senior partners of The Bermont/Carlin Group at Morgan Stanley. The Marketing Scholars trip is supported by Michael Goldstein, a parent of a student, along with Robert Milo (BBA ’65) and MORE PHOTOS FROM STUDENTS’ TRIP TO NEW YORK: magazine.bus.miami.edu Amelia “Amy” Milo (BBA ’65). – Rochelle Broder-Singer continued on page 14 Fall 2017 BusinessMiami 13
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Vice Dean Appointments BY ROCHELLE BRODER-SINGER
this summer saw leadership changes at the School when Dean John Quelch appointed two new vice deans: Anuj Mehrotra and Patricia Sánchez Abril. He appointed Mehrotra, who served as interim dean for the School during the 2016-2017 school year, as senior vice dean and vice dean for faculty develop- ment and research. He takes over the vice dean posi- tion from Michael Tsiros, Patrick J. Cesarano Scholar and department chair and professor of marketing. Mehrotra, who was the School’s vice dean for gradu- ate business programs before becoming interim dean, is also the Leslie O. Barnes Scholar and professor of management science. “Anuj brings a wealth of experience to this role,” said School of Business Dean John Quelch. “His depth of knowledge of the institution and the high regard in which faculty hold him make him exceptionally quali- Truman Scholar Kristiana Yao fied for this position.” Quelch appointed Abril, professor of business law and former chair of the department, as vice dean for graduate School of Business Student Named Truman Scholar business programs and executive education. The 13-year KRISTIANA YAO IS THE FIRST NAMED AT UM IN 33 YEARS. School of Business veteran takes over from Arun Sharma, BY ANDRES TAMAYO professor of marketing. “Patricia is an accomplished scholar and award-winning teacher, and she will bring IN SPRING OF 2017, Kristiana Yao received management those skills to this important position,” Quelch said. “As MORE ABOUT KRISTIANA YAO: the Truman Scholarship, one of the most magazine.bus.miami.edu and policy at we continue to grow our graduate programs, she will be prestigious scholarships awarded to col- the School able to build on the work of her predecessors and take lege students nationally. Yao became just of Business and in public health at the these programs to the next level.” the second University of Miami student to School of Nursing and Health Studies. Ann Morales Olazábal (MBA ’97) will continue as be selected as a Truman Scholar – the last “I hope it stirs up more interest in and vice dean for undergraduate business education, and was Wayne L. Firestone (AB ’86) in 1984. support for public service careers.” chair and professor of business law. Awarded by the Harry S. Truman Schol- Yao has already gained experience at arship Foundation, a federal agency, the various levels of government, including Truman Scholarship recognizes college ju- early internships with county health niors with exceptional leadership potential departments. Following her sopho- who plan to pursue careers in government, more year at the University, she landed education or elsewhere in public service. an internship with the Domestic Policy It includes up to $30,000 for graduate or Council at the White House, where professional school, as well as leadership she met several Truman Scholars who training; recipients must work in public inspired her to apply for the award. Yao service for three of the seven years after admired their passion for change and completing their graduate degrees. “wanted to join a group of people who “This scholarship reaffirms my goal would share my passion for policy and of improving public health through the challenge me to think critically about
public sector; there are so many civil ser- my plans for the future.” Vice deans Ann Morales Olazábal, Anuj Mehrotra and Patricia Sánchez Abril. vants at all levels of government working Yao’s long-term goal is to improve hard to keep their communities healthy the health system by aligning payment and safe,” says Yao, who is now a senior and delivery innovation with social pursuing a double major in health sector determinants of health.
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New Scholarship Honors Memory of 2014 Graduate Brett Schwartz BY LAUREN COMANDER
the family of alumnus Brett Schwartz (BSBA ’14, MACC ’14), who passed away at age 24 in June 2017, has created a new endowed scholarship that will benefit students Noe Montes with food and supplies collected for seeking a degree and profession in ac- Morelos state in Mexico. counting. “The University of Miami was his favorite place in the world,” says his father, Myles Schwartz. “He was a ’Cane through and through. He Alumnus Mobilizes for Mexico loved everything about the School BY DOREEN HEMLOCK and everything about Miami. … If we were doing something, this is the WHEN A MASSIVE EARTHQUAKE HIT Mexico in Sep- While he was a student in the School’s Execu- place where he’d want it to go.” tember, killing more than 360 people and injuring tive MBA en Español program, Montes wanted to Donations in Brett’s memory are more, Mexican entrepreneur Noe Montes (MBA ’17) develop his final project as a nonprofit, instead of going toward the Brett Schwartz quickly took action. He mobilized the nonprofit a for-profit venture. The faculty member teach- Memorial Scholarship in Accounting. foundation he’d launched as a final project in his ing the global entrepreneurship course, Joseph “Students aspiring to be accounting global entrepreneurship class at the School. Ganitsky, director of the UM Center for Interna- professionals here at the School of Montes, 40, is owner and CEO of Transportes tional Business Education and Research (CIBER), Business will benefit from this, and it Montes, a group of transport and logistics was completely supportive. Montes developed the will go on in perpetuity,” says Lance companies. He now lives in Laredo, Texas, on the business plan for Fundacion TM as his final project. Balding, the School’s director of an- U.S.-Mexico border. He coordinated with fellow He then started the foundation, named for his nual giving. entrepreneurs in Laredo to park three trailers Transportes Montes group, with a focus on educa- Brett, who grew up in Morganville, at Walmarts to collect goods for earthquake tion for low-income children and a plan to become New Jersey, received an undergradu- survivors. In three days, they received 40 tons of a formal U.S. nonprofit later. ate academic scholarship from the donations, from canned food to water and diapers. The group’s first initiative involved helping an School. After graduating, he passed Montes arranged for delivery of those items to orphanage and school for low-income children in the CPA exam, went to work for church groups in Morelos state in central Mexico, a Montes’ hometown by supplying books, uniforms, PricewaterhouseCoopers in New York hard-hit area that received little attention amid in- food and a van, plus management assistance. City and became one of the youngest ternational focus on Mexico City. Parts of Morelos “Education parts the waters for families and whole to be promoted to senior associate. were still without communications at that time and societies. If I hadn’t been educated, I’d never have “This scholarship has become were said to look “like a war zone,” Morelos says. the opportunities I have now,” says Montes, who bigger than we ever thought it “When you start getting feedback from people employs more than 300 people at Transportes would,” Myles Schwartz says. “It’ll who support you and from the people you’re helping, Montes. “So, I want more children to be exposed to be forever.” the feeling is indescribable,” Montes says. “You real- education and have the chance to be empowered Donations to the Brett Schwartz Me- ize it’s worth all the commitment and all the work.” through education.” morial Scholarship in Accounting can be Montes knows firsthand the importance of help- Next up for Fundacion TM: finding partners to made at bus.miami.edu/brettschwartz. ing those in need. He was born to a poor family bring the innovative, educational Knowledge is Pow- in Ciudad Lerdo, a community of 82,000 people er Program to his hometown to help children excel in Mexico’s Durango state. His dad grew corn and in school and beyond. “Sometimes, you feel you’re beans, his mom was a homemaker, and lots of crazy trying to change the world and no one cares. children never went to school. Montes’ parents But the truth is, lots of people want to help and feel stressed education. He and his siblings all finished the same way you do,” says Montes, who has been high school, and Montes, working since his teens inspired by the support in Laredo for earthquake to help his parents and pay for his studies, became victims. “It’s a wonderful feeling to know you’re not
PHOTO: COURTESY NOE MONTES COURTESY PHOTO: the first in his family to complete college. alone, and together, you can make a difference.”
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UM’s Florida 50 Stock Index Business Analytics Masters Program Continues to Outperform Nearly Doubles Enrollment BY SETH LEVINE BY RICHARD WESTLUND (MBA ’83)
MARIA DI NATALE (BBA ’15) understands the im- and an assistant professor of professional prac- Index Performance, Jan. 1–Oct. 31, 2017 portance of predictive analytics, big data and tice in management science. machine learning in today’s business world. One of the differentiating features of the “After earning my bachelor’s degree, I moved School’s program is the capstone course, into digital marketing,” she says. “I found Lehmann says. “We partner with companies myself fascinated by the numbers and how seeking insights into data-related issues. they can be interpreted. But I didn’t have an Then, a team of our students spends several
analytical background, so I decided to go back months applying their analytic tools and skills Florida UM’s 50: +23.33% S&P 500: +15.03% S&P 1500: +14.49% to school for a graduate degree.” Di Natale in a real-world case study,” he explains. This enrolled in the School’s specialized Master of year, the MSBA students are participating in Science in Business Analytics (MSBA), joining projects for leading South Florida companies the university of miami’s Florida 50 stock a class of 43 students this fall – a significant like Carnival Cruise Line, Visa Solutions, Royal index (UMIAMIFL) continued to significantly jump from the prior year’s 25-student class. Caribbean and the Florida Panthers. outperform the broader markets year-to-date With nearly every industry seeking profes- MSBA student Nicolas Pelletier (BBA ’15), through Oct. 31. Considered a bellweather sionals who know how to use data, “our spe- co-founder of the Business Analytics Club for for the state’s economy, the index tracks all cialized master’s degree program has taken graduate students, is looking forward to his Florida-based firms in the S&P Composite off, with dramatic growth over the past four team’s project with Carnival. “We visited one 1500 Index. It has beaten the S&P 500 by years,” says Daniel McGibney, co-director of of their ships in October to get a better under- 8.30% and the S&P 1500 by 8.84% for the year. the MSBA program and an assistant professor standing of the cruise experience,” he says. The 12 largest companies in the Florida 50 of professional practice in the School’s Depart- “We will be working on predictive models for Index have a combined market capitalization ment of Management Science. “It’s also why consumer sales and the retail stores. This proj- of more than $300 billion. Nine of these 12 we have a placement rate that’s well over 90% ect has the potential to deliver a very positive companies have boasted year-to-date returns for our graduates,” he adds. ROI [return on investment] for the company.” of more than 20%, and six boasted year-to-date The MSBA curriculum includes business ana- Like other MSBA students, Di Natale feels returns of more than 30%. lytic tools, programming languages, data mining that the School’s program will open doors to The index included strong FOLLOW UM’S FLORIDA 50: and machine learning. “Starting with a statisti- new career opportunities. “I might combine performances by: UMIAMIFL.com cal boot camp, our students learn how to turn analytics with market research or look for a • Florida Power & Light parent abstract data into meaningful information that managerial role in the operations side,” she company NextEra Energy can be applied to any business model,” explains says. “In any case, I am learning important • Railroad conglomerate CSX Industries Douglas Lehmann, the program’s co-director skills that I’ll be able to apply in the future.” • Cruise companies Carnival Corp. and Royal Caribbean Cruses • Financial services companies Fidelity National and Raymond James • T echnology innovators Harris Corporation and Roper Technologies • Real estate leader Lennar Norwegian Cruise Lines and cell tower builder SBA Communications are new to the index; S&P added them to the S&P 1500. UM’s Florida 50 Index is the first S&P Dow Jones index owned by a university, and it is During a visit to Carnival at the start of the the only index that focuses solely on compa- capstone consulting project for the company: nies headquartered in an individual U.S. state. MSBA Program Co-Directors Daniel McGibney and Douglas Lehman (front kneeling) with (in back, left-right) student Nicolas Pelletier; Carnival’s Paris Index creator Seth Levine is director of the School’s Li; students Nuoya Fang, Yiyun Tang, Yining Zhou, Master of Professional Accounting program. Cheng Huang, Maria Di Natale and Alfredo Bisogno; PHOTO: COURTESY CARNIVAL CRUISE LINE CRUISE CARNIVAL COURTESY PHOTO: and Carnival’s Tina Lam.
16 BusinessMiami Fall 2017
00-19_FOB Fall 17 R20.indd 16 11/24/17 11:49 AM RECENT MEDIA CITATIONS In the News
Faculty Share Their Expertise
Miami Herald – 10/13/17 Bloomberg BusinessWeek – in creating infrastructure for Kelly, a professor of econom- In an article explaining how cancel- 10/12/17 internet and digitization.” ics, noted that, while walkable ing Affordable Care Act subsidies In an article about real estate neighborhoods are desirable, “it’s for low-income Americans would investors buying up flooded “CNN Dinero,” CNN en Español – oftentimes more important to ask lead to a financial windfall for homes in Houston at low prices, 7/31/17 yourself who you are attracting some insurers, Steve Ullmann, Andrea Heuson, a professor of Maikel Leon Espinosa, a to live there.” chair and professor of health finance, expressed concern that business technology lecturer, sector management and policy, homeowners who sell are “making analyzed differing attitudes about The Washington Post – 7/14/17 cautioned that President Trump’s pretty dramatic decisions without artificial intelligence between In an article about an email from proposal to allow insurance the education to figure out what Elon Musk, who considers it a po- a chief executive to his employee, coverage with lower premiums and the alternatives are and without tentially existential threat to the supporting her taking time off to fewer benefits could siphon young looking at the situation rationally.” human race, and Mark Zuckerberg, cope with mental-health issues, and healthy consumers from ACA who feels more optimistic. Dean John Quelch noted that exchanges and “drive up the cost Diariodelcauca.com – 9/18/17 the outpouring of comments of plans for those who have pre- In the Colombian news portal, Forbes China and Forbes – “indicates there is an undercurrent existing conditions.” Joseph Ganitsky, a management 9/21/16 of awareness in the population lecturer and director of the UM Dean John Quelch discussed that this is an issue and it has not “Marketing Matters,” Sirius Center for International Business Latin America’s promise for been addressed in a systematic XM Business Radio Powered Education and Research (CIBER), Chinese companies and the keys way by most corporations.” by The Wharton School – discussed the challenges of en- to success, citing the No. 1 key 10/4/17 trepreneurship in Latin America as a match between what the “Marketing Matters,” Sirius Zoey Chen, an assistant profes- and its rising popularity, noting company is offering and what the XM Business Radio Powered sor of marketing, discussed that one reason people are willing market needs: by The Wharton School – her research on word-of-mouth to take the risk is that failure to 7/12/17 marketing, noting that people are launch a new company isn’t truly “Often Chinese Michael Tsiros, chair and profes- more likely to describe negative a failure, but a stage in the learn- going out have sor of marketing, discussed his re- things about a restaurant when ing process. a good product search into consumer perceptions, communicating to a friend. In Yelp in China or good including the fact that people reviews, she found: De Standaard – 9/1/17 service in China, almost universally use the wrong The Belgian newspaper published but don’t neces- mental model when working with “The more Yelp an article about research by Hen- sarily tailor it to ratios, such as calculating aver- friends someone rik Cronqvist, chair and professor the needs of the age miles per gallon or calories has, the more of finance, which found that local country.” per serving: their language when investors see the color red became negative.” used to present a firm’s financial The Hindu – 7/27/17 “Because the er- data, they expect less from the In India’s leading English-lan- ror is always on “CNN Dinero,” CNN en Español – firm’s future stock returns than guage newspaper, A. Parasura- one side; you’re 10/4/17 they do when the same data are man, James W. McLamore Chair always underes- Alejandro Ruelas-Gossi, a man- presented in black. in Marketing, discussed poor cus- timating it.” agement lecturer, discussed how tomer service in India and what NFL team owners should handle Outlook – 8/24/17 companies can to do improve it, player protests during the national In the weekly Indian general pointing out that “You cannot be anthem. If they do impose rules, he interest English news magazine, an excellent marketer if you can- cautioned, owners need to: A. Parasuraman, the James W. not offer excellent service.” McLamore Chair in Marketing, Links to these articles, “Be like the Chi- discussed hurdles to international The Miami Herald – 7/14/17 plus more school nese and get firms doing business in India, In an article about zoning faculty in the news: along with stressing that, “the government changes to spur new development bus.miami.edu/inthenews everyone.” will have to play a major role in the city of Palmetto Bay, David
Fall 2017 BusinessMiami 17
00-19_FOB Fall 17 R19.indd 17 11/22/17 9:07 PM Faculty News AT THE FOREFRONT OF THEIR FIELDS
1 FACULTY 1 2 awards & honors]
1 YADONG LUO, the School’s Emery Findley Distin- guished Chair and professor of management, won the Academy of Management’s International Manage- 2 ment Division Outstanding Educator Award, which recognizes continuous excellence and innovation in teaching international management at all levels and in a global context.
2 MIGUEL MINUTTI-MEZA, associate professor of accounting, became ad hoc editor for Contemporary Accounting Research. New Faculty, Full-Time 3 3 CHESTER A. SCHRIESHEIM, a University Distin- Lecturers Join School guished Professor of Management at the School, TWO NEW FACULTY MEMBERS BEGAN WORK AT received the 2017 Distinguished Career Award from THE SCHOOL THIS YEAR. the Research Methods Division of the Academy of Management. The award recognizes scholars who 1 IAN WRIGHT joined the economics department as an have made significant contributions to the advance- assistant professor. He spent the previous school year as ment of research methodology. Schriesheim was also a visiting lecturer at Northeastern University (in Boston),
4 recently recognized among the world’s top 1% of shortly after earning his PhD in economics from Syracuse industrial/organizational psychologists, based on his University in 2016. His research interests include inter- scholarly impact. national trade and theoretical and applied econometrics (theories and application of empirical data to understand 4 NAN YANG, a professor of management, was economic trends and test theories). Wright earned a appointed senior editor of the academic journal Pro- Master of Arts in economics from Virginia Polytechnic duction and Operations Management, and associate Institute and State University, and a Master of Science editor for the Journal of Management Science and in economics from the University of the West Indies in Engineering. Kingston, Jamaica.
2 ALFRED METTLER joined the finance department as an associate professor of professional practice. His main academic interests are global banking and finance, financial Three New Department Chairs institution risk management, global financial architecture Faculty quality: and financial education. A regular consultant to industry three faculty members stepped into new roles as department chairs at the and government, he has previously held academic posi- beginning of this school year. Henrik Cronqvist, director of business and tions at the University of Zurich, New York University, the economics PhD programs and professor of finance, became chair of the De- American Graduate School of International Management partment of Finance. Linda Neider, professor of management, became chair (Thunderbird) and Georgia State University. Mettler earned of the Department of Management. And Ann Morales Olazábal (MBA ’97), his PhD in finance and his MBA at the University of Zurich. vice dean for undergraduate business education and professor of business law, became chair of the Department of Business Law. Continuing in their roles In addition, new full-time lecturers joined the School in from previous years, Sundaresh Ramnath chairs the Department of Account- several departments: among full-time MBA programs around the world ing, Robert Plant chairs the Department of Business Technology, Manuel PLATON ALEXANDRAKIS – Business Law, OLIVIER – The Economist MBA Rankings 2017 Santos chairs the Department of Economics, Steve Ullmann chairs the De- BOUCLIER – Management, TRINI CALLAVA – Marketing, partment of Health Sector Management and Policy, Yongtao Guan chairs the SAIRA FIDA – Accounting, KAREN HARRIS – Management, Department of Management Science and Michael Tsiros chairs the Depart- JOSE SEVILLA – Business Technology, and DIANA JORDAN
ment of Marketing. ZAMORA – Business Law. PRODUCTIONS GORT PHOTOS:
18 BusinessMiami Fall 2017
00-19_FOB Fall 17 R19.indd 18 11/22/17 9:07 PM colorful Seminole patchwork jackets and, often, carrying the smoking Iron Arrow Fire Bowl. Twice a year, they induct new members through a closely guarded tapping ceremony, fol- lowed by a 24-hour drumming vigil on campus. The day after being tapped for Iron Arrow, Patricia Sánchez Abril (center) wore her jacket to the School’s Abril was tapped on Nov. 2, homecoming celebration, as required of all tappees. when solemn-faced Iron Arrow members showed up at the School beating drums, tapped Faculty quality: alumni, faculty, staff, adminis- her across the chest with an Iron Arrow Tapping tration and others who exhibit arrow, then took her by the arm scholarship, good character, and walked her to the Iron Ar- THE UNIVERSITY’S IRON ARROW humility and love of the U. row Mound near the Rock. They # Honor Society tapped Patricia Membership is considered the painted her face with orange, Sánchez Abril, the School’s highest honor at the University. white and green strips and vice dean for graduate business Iron Arrow members can be helped her into an Iron Arrow programs and a professor of seen leading the UM Homecom- jacket. A secret initiation cer- business law, for membership ing parade, at Hurricanes sports emony will follow later this year. among full-time MBA programs 19around the world in November. Formed in 1926, games and at other University – The Economist MBA Rankings 2017 Iron Arrow honors students, activities, wearing distinctive,
A GLOBAL SEARCH FOR THE BRIGHTEST ACADEMICMINDS
The School of Business is seeking candidates who have distinguished themselves through their teaching, research, scholarship, and creative work for: Six chaired, tenured professorships at the full or associate levels in: Five tenure track positions at the assistant professor level in:
Accounting Business Law, Ethics, Compliance Accounting Business Analytics and Sustainability Business Analytics Finance Global Business Strategy Health Sector Management & Policy Global Economics Global Leadership Marketing Marketing Innovation and Entrepreneurship Strategy
Search committees will begin reviewing applications and nominations in November 2017 and searches will continue until positions are fi lled. Please visit bus.miami.edu/profsearch to learn more and to apply.
The University of Miami is an equal opportunity employer that embraces all forms of diversity. PHOTO: GORT PRODUCTIONS GORT PHOTO:
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00-19_FOB Fall 17 R19.indd 19 11/22/17 9:13 PM 20-27 Social Fall 17 R11.indd 20 20 BusinessMiami Fall2017 and Karen-JanineCohen By RochelleBroder-Singer of Businessarehere tohelp. from acrossdisciplinesattheSchool way communication.Facultymembers reach, instantdisseminationandtwo- to avoidgettingburnedbyitswide how tobesttakeadvantageofit– media managersscrambletoascertain Individuals, brandmanagersandsocial Yet, it’s stillanewfrontierinmedia. brands interactwiththeircustomers. the mainwaysthatcompaniesand professional reputationandoneof shaping perceptions.It’s keytoyour has becomeadominantmediumfor In lessthanadecade,socialmedia Your Brands Your Company and Presence for Yourself, Shaping theBest Social Media:
and and
PHOTOS: STEVE BOXALL Cecily Cooper –ManagingReputation Online[pg.25] Zoey Chen–Understanding OnlineReviews [pg.23] 11/22/17 10:56 PM
ILLUSTRATION: TRACI DABERKO Vamsi Kanuri – Patterns of Viewing and Clicking [pg. 22]
Patricia Sánchez Abril – Models for Privacy and Ownership [pg. 23]
Joseph Johnson & Hyunhwan “Aiden” Lee – Evaluating Brands [pg. 26]
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20-27 Social Fall 17 R11.indd 21 11/22/17 10:56 PM People’s viewing and clicking on social media follows a pattern, and Vamsi Kanuri, assistant professor of marketing at the School, developed an algorithm that al- lows newspapers to take advantage of that pat- tern to maximize click- thrus. Learn how Kanuri crunched the numbers to create a model that newspapers can use to decide when and how often to post, and whether to boost a post – and increase gross profits from social me- dia by at least 23%.
Exclusively online at magazine.bus.miami.edu/socialmedia
than those posted during the week. When Should You Post – (Kanuri theorizes that people choose and When Should You Boost? to read more posts during weekends because they have more leisure time, By Karen-Janine Cohen but the goal of reading more posts leads them to click on fewer links.) Click-thrus also vary by region. For The research of Vamsi Kanuri, as- up too soon after an initial posting, example, in parts of Florida with sistant professor of marketing, into people are unlikely to read it or pass many retirees, readership can be optimizing social media posts for it on; too long between posts, and high in the afternoon. newspapers found a number of pat- people look for information else- Boosting works. Targeted-content terns that any entity posting content where. Six hours seems to be the advertising, or boosting, of a post can benefit from: golden time frame – just the right leads to higher organic reach and Social media users seek out certain pause between stories to see the next more click-thrus. kinds of content at certain times of day one read and shared as well. Boosting on weekends works even – for example, local news is more Reach and click-thrus vary between better. Posts boosted over weekends popular in the evening. weekdays and weekends. Social media are more effective in increasing both How often stories show up matters. posts on a weekend will garner more organic reach and click-thrus than If an update or similar story shows organic reach, but fewer link clicks, those boosted on weekdays. ILLUSTRATION: STEPHANIE DALTON COWAN DALTON STEPHANIE ILLUSTRATION:
22 BusinessMiami Fall 2017
20-27 Social Fall 17 R11.indd 22 11/22/17 10:56 PM Privacy and Social Media do you have to post everything going through your head?” But it is often not Why there should be that simple. People experience social laws preventing and professional pressures to exist on social media. For many, failure to engage potential employers or on social media may mean irrelevance – schools from requiring either in a social group or in a particular that you let them behind industry. It’s an important way of social- your social media walls. ization. It’s a new town square, and it’s not all bad. The law must protect people’s privacy in new forums, because privacy is critical to Employers and educational institutions the development of the individual, relation- sometimes ask current or prospective em- ships and even society. ployees and students to grant them access to There’s clearly a line between search- password-protected social media or other ing what’s already publicly available and accounts. A few states have laws that prohibit what is behind the password “wall.” this, but even their laws are not consistent. People should have a right to socialize Patricia Sánchez Abril, the School’s vice and to communicate over social media in Reviews and opinions dean for graduate business programs and a way that they don’t feel threatened or are more positive when a professor of business law, was part of a chilled. They should be able to keep what- people are interacting Uniform Law Commission committee that ever they choose to behind a wall – private online with strangers, drafted a model law for states on student and – so not everyone can see it. and more candid and employee social media privacy. The model law Privacy is not just a luxury. If it weren’t negative when talking would make it illegal for potential or current for privacy, people couldn’t experiment in their employers or schools to require an individual lives without the fear of making a huge with intimates, accord- to let them see beyond the “password wall” to public mistake. Not everything should be ing to research by Zoey content posted non-publicly in social media on record for everyone to see all the time. Chen, assistant professor or other online accounts. The model law Privacy affords us the ability to manifest of marketing. Learn why contains exceptions for law enforcement with the many sides of who we are. It’s normal reviews on the internet a subpoena, laws and regulations regarding and healthy to present yourself differ- may be more like chatting disclosure, and cases where there is credible ently to, say, friends from college versus a threat to life. At press time, laws following the colleague at work. And that doesn’t mean over the fence or exchang- model had been introduced in Hawaii, Min- you’re hiding anything. ing pleasantries at a PTA nesota and New York. Politically, privacy is a kind of cornerstone meeting than the objective Abril shared her view on privacy in the 21st of democracy. If it weren’t for the ability analysis many companies century, which heavily informed the model law to express what may be countercultural assume they get through she helped draft: political views, to experiment with those Facebook, Yelp, Amazon or ideas or to criticize those in power in a For someone who did not grow up private, safe sphere, democracy would be their own web pages. online, it may seem striking and maybe stifled. immature to have a ubiquitous online – As told to Rochelle Broder-Singer Read more exclusively online at presence. They might wonder, “Why magazine.bus.miami.edu/socialmedia ILLUSTRATION: ALISON MIRMAN ALISON ILLUSTRATION:
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Lessons for Companies what people talk about, especially if 20-27 Social Fall 17 R11.indd 23 on Online Conversa- 11/22/17 10:56 PMthe post is a conduit for experience. tions Between Friends • Companies should be cognizant and Strangers about what individuals are trying to gain from re-sharing content. For in- stance, will people who are pursuing social connections want to share or forward an edgy company video? • Companies should know what they want to achieve. Ads that are more controversial may gain a high viewer- ship. DO THEY GET FEWER COM- MENTS AND FORWARDS? • Be authentic. That is important, especially for millennials, who are good at detecting insincerity. People dislike when they feel manipulated. Who Owns Your Social Media Presence? in advertising. The authors argue that, because social media is the dominant way that publicity is When employee and employer part ways, who gets disseminated today, and because it allows people to keep the social media profiles and audience? to become celebrities, the framework “is both logical and desirable.” By Rochelle Broder-Singer Abril and her co-author aimed to balance an employee’s financial, social and emotional inter- With the blurring of personal, professional and legal framework for answering the question about ests and investment in his or her social media company on social media, disputes over whether who owns a social media presence. The Academy with an employer’s legitimate business claims. an employer or employee gets to keep a Twitter of Legal Studies gave the paper its 2016 Hoeber They argue that, “with few exceptions, individu- or Facebook account, a Facebook page, a blog or Memorial Award for Excellence in Research. als should be entitled to protection against those other social media asset are becoming increas- The framework Abril and her co-author who seek to misappropriate their work, personae ingly common. The law doesn’t provide clear guid- proposed is grounded in the theory of public- and goodwill on social media for economic gain, ance on the issue, says Patricia Sánchez Abril, ity rights, a well-established area of law that except when their work falls squarely in the scope the School’s vice dean for graduate business pro- protects the “unjustified commercialization of of their employment.” grams and a professor of business law. She and another’s name, likeness, reputation, accom- So, how do the authors suggest a court deter- a colleague at Boise State University examined plishments or endorsement.” This is the same mine whether a social media presence belongs the issues and crafted a paper, published in the area of law that lets celebrities control the use to the employee or employer? They propose a American Business Law Journal, that proposes a of their name, image or other characteristics multipart analysis:
Weighing Ownership: Factors That Tip the Scales Toward the Employee or the Employer
EMPLOYEE OWNS SOCIAL MEDIA PRESENCE EMPLOYER OWNS SOCIAL MEDIA PRESENCE • Creation of social media presence not part of • Employee hired for marketing or communications-related position employee’s work duties • Building or maintaining social media audience on behalf of • Employee only occasionally used a primarily personal account employera critical part of job description to promote employer’s business • Employee hired with understanding that he or she would contribute • Employee created the account or import existing social media presence to the company • Employee’s existing account(s) and audience were • Employee inherited account set up by employer important factors in hiring before employment began • Employee brought a majority of social media audience • Employee created account during employment when employment began • Account is primarily one designed for an organization, such as a • Employee created account on own behalf, unrelated to job description Facebook page or a LinkedIn company page • Account primarily used for personal reasons • Employer gave guidance to social media presence that employee was charged with cultivating • Account set up in employee’s name only Employer openly monitored or controlled postings • Privacy settings on employee’s account restrict public viewing, and • employer has no access to change settings or see private posts • Employer imposed rules regarding account • Social media forum identifies employee by name • Employer maintained administrative rights or login information to accounts • Presence infused with employee’s identity More than one employee worked on the account • Employee enjoyed social media recognition or notoriety • independent of employer • Employee writing anonymously or pseudonymously on behalf of employer • Employee wrote or created majority of content Employee attracted social media audience, under his or her
• MIRMAN ALISON ILLUSTRATION: identity, through a variety of accounts
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20-27 Social Fall 17 R11.indd 24 11/22/17 10:56 PM Reputation and Social Media Cecily Cooper, associate professor of man- agement, shared her thoughts on managing your professional reputation or a company’s reputation on social media.
3 Ways to Use Social Media to Does reputation management differ on social media versus other contexts? Cultivate a Positive Company or Social media is just another context. To build and maintain your profes- Brand Reputation sional reputation, people need to actively manage the impression that they portray to others across various contexts. – ACCORDING TO CECILY COOPER, ASSOCIATE PROFESSOR Here’s where the difference comes in: When people are physically at OF MANAGEMENT work, it’s more salient to them that they need to manage these impres- sions. This can mean in the office or face-to-face with your colleagues or 1. Be responsive. Constantly 2. Know your audience and customers. The tricky thing about social media, which I think gets people monitor the social media how to engage it. One into trouble, is that the distinctions and boundaries between your person- postings from customers CEO who does this well is al and professional life may become blurred. You may post something on in real-time, and respond John Legere of T-Mobile. social media that reflects your personal self rather than your professional quickly. Doing so builds He has about 4 million self, not thinking about the fact that you are also linked to co-workers – trust in your brand, because Twitter followers whom he and perhaps even your supervisor – on this account. it signals that you care. One is actively engaged with. of the fundamental aspects Do you think younger people are more at risk? of trust is benevolence – 3. Social media is arguably I think people who are heavily involved in social media may be more demonstrating that you have the most important new prone to forgetting about this distinction between their personal and the other parties’ best inter- marketing channel, but the professional selves and share information with their professional network ests at heart. So if customers unique thing about this that they probably shouldn’t. Younger people have grown up inundated feel that a company cares marketing channel is that with social media. Because of this, I’m always concerned about how they about their thoughts and communication can go both manage their reputations on social media. I make a point to advise my stu- cares about them, then they ways. Smart companies will dents to be cognizant about what they post, because a potential employer will perceive the company leverage this opportunity might see it. as highly benevolent. That, and listen to what custom- in turn, means customers ers are saying. What about the breadth of social media’s reach? are more likely to trust the – Rochelle Broder-Singer It can be a really useful tool for building a reputation with a broader group company and to more read- of people that you might not otherwise be able to reach.
COLA: ALISON MIRMAN; ICONS: STEPHANIE DALTON-COWAN STEPHANIE MIRMAN; ICONS: ALISON COLA: ily forgive any mishaps. – Rochelle Broder-Singer
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20-27 Social Fall 17 R11.indd 25 11/22/17 10:56 PM The Social Media Brand Reveal With the right tools, customer posts allow managers to evaluate brand perception dy- namically, across geography and relatively cheaply. By Rochelle Broder-Singer
Because social media allows the customer to speak directly to brands, it can bring brand owners closer to consumers, potentially giving them access to more information, more quickly, than ever before. Hyunhwan “Aiden” Lee, a SAVETHEDATE marketing doctoral candidate at the School, is researching ways companies can make use of this advantage. “Many brand managers feel – and I think, correctly – that [social media] has FRIDAYAPRIL •UNIVERSITYOFMIAMI made managers lose power over their brands,” says Joseph Johnson, associate professor of marketing at the School. “The brand is now co-created with the cus- tomer. But, social media also gives the managers the opportunity to engage, get As Congress and the Trump administration consider FEATURED SPEAKERS feedback and monitor their brands in near-real time. It’s a double-edged sword.” One advantage to social media, according to Lee, is that it offers a new various paths forward for U.S. health care reform, Richard Pollack opportunity to evaluate brand perceptions in real-time and across geography. the School of Business Administration, will host the President and CEO Using social media postings is faster, less costly and more dynamic than the American Hospital Association surveys that have traditionally been used. And, social media allows those mea- Do’s and Don’ts of Using seventh in its series of premier health care conferences, surements to be geographically delineated. Social Media to Maintain a The Business of Health Care: What’s Next? “Tracking dynamic changes in brand equity is important, because when Positive Professional Marilyn Tavenner and how people are talking about a brand can decide how the brand needs to Reputation President and CEO react,” Lee explains, adding that it also uncovers opportunities to win over a Don’t miss this unique opportunity to hear from some America’s Health Insurance Plans competitor’s customers. – ACCORDING TO CECILY COOPER, ASSOCIATE Lee created software that crawls social media and picks up data such as text PROFESSOR OF MANAGEMENT of the nation’s top industry and policy leaders on the Joseph Fifer comments and likes, then uses several algorithms to analyze the data, to deter- • Do post things that are consistent with the values implications of widespread changes to the U.S. health President and CEO mine what a poster wrote about and whether it was a positive or negative senti- your organization holds, thereby demonstrating you Healthcare Financial Management ment. The model updates and reruns every two weeks, making the measures hold those values, too. For example, if you work for care system on business and government. Association dynamic. The model outputs a brand’s associations and favorability. Also, because its a company that applauds social responsibility, then assessment is only a couple of weeks old, it can identify new associations and changes in post information about your community involvement One panel will bring together the CEOs of virtually Halee Fischer-Wright, MD sentiment almost as they’re happening. Lee also coded the software to analyze avail- or volunteer activities. If you are a professor, post President and CEO able information about the person who posts a comment; this is done to deter- about your involvement at academic conferences, or every major health care industry association to discuss Medical Group Management Association mine a comment’s geographic range of influence – likely giving a wider influence invited speaking engagements at other universities. the impact of changing health care policy on health to something Lebron James posts than to something a non-celebrity posts. The • Do not post anything in any social media account data can be presented in a near-real time, visual map of a brand’s favorability, that would be contradictory to your organiza- care sectors. Others will examine technology and Pamela F. Cipriano strength and awareness in each U.S. state. tion’s values. If you know your position may not be President “Brands have to be managed geographically, because you have to figure out consistent with the organization’s values, share the access to health care, the transformation of health care American Nurses Association where your brand is doing well and where your brand is weak compared to the competi- information privately. delivery and much more. tion, because you have to allocate budgets,” Johnson says. “You don’t allocate • Do not connect with work colleagues on accounts budgets to the U.S.; you allocate budgets to Miami or Minneapolis.” you want to use for mainly personal reasons. Or, The tool is in action on brandmap.net, where anyone can see how people feel segment your audience and set postings for privacy. about Coke, Pepsi, McDonald’s, Burger King, Ford and Toyota, broken down • Do not post anything that your employer would con- by state, over any time period in sider a fireable offense. This applies even if you are the past 33 weeks. That’s just a not connected with work colleagues on a particular Registration coming soon See the Interactive fraction of the 126 brands that social media account. Even with privacy settings, you Lee’s software analyzes. Lee and are still putting information out into the public domain. FOR MORE INFORMATION, VISIT: Brand Map: brandmap.net Johnson hope to eventually cre- – Rochelle Broder-Singer bus.miami.edu/healthcare2017 ate an international model.
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20-27 Social Fall 17 R11.indd 26 11/22/17 10:56 PM SAVETHEDATE FRIDAYAPRIL •UNIVERSITYOFMIAMI
As Congress and the Trump administration consider FEATURED SPEAKERS various paths forward for U.S. health care reform, Richard Pollack the School of Business Administration, will host the President and CEO American Hospital Association seventh in its series of premier health care conferences,
The Business of Health Care: What’s Next? Marilyn Tavenner President and CEO Don’t miss this unique opportunity to hear from some America’s Health Insurance Plans of the nation’s top industry and policy leaders on the Joseph Fifer implications of widespread changes to the U.S. health President and CEO care system on business and government. Healthcare Financial Management Association One panel will bring together the CEOs of virtually Halee Fischer-Wright, MD President and CEO every major health care industry association to discuss Medical Group Management Association the impact of changing health care policy on health care sectors. Others will examine technology and Pamela F. Cipriano President access to health care, the transformation of health care American Nurses Association delivery and much more.
Registration coming soon FOR MORE INFORMATION, VISIT: bus.miami.edu/healthcare2017
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UM_2018HealthCareConf_BusinessMiami_FPad-1026v2.indd 1 10/31/17 4:02 PM
20-27 Social Fall 17 R11.indd 27 11/22/17 10:56 PM Becoming a ’Cane New School of Business Dean John Quelch, a worldly academic known for his sharp intellect and wit, settles into his new role. By Lauren Comander, with reporting
by Richard Westlund (MBA ’83) PRODUCTIONS GORT PHOTO:
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28-31 Dean Fall 17r5.indd 28 11/22/17 11:02 AM One thing you will never see degree in modern history and a Master In 1995, Quelch developed the first School of Business Dean John Quelch of Arts from Oxford University, where Harvard Business School interactive CD- doing is eating bread. He’s not a fan he edited the university newspaper. ROM exercise, which focused on Intel’s of bacon, fried eggs or hash browns After earning his Doctor of Business advertising budgeting process. either. And when it comes to break- Administration degree from Harvard fast cereals, he is very particular. “I Business School in 1977, he began his occasionally indulge in sugar Frosted teaching career at the University of Flakes,” he admits with a grin in his Western Ontario School of Business clipped British accent. “But only Administration (in London, Ontario). if I’m treating myself and only in a In 1979, he returned to Harvard as a hotel restaurant. I would never dream faculty member, spending the bulk of of buying them or bringing them into his career at that university. my house.” Such sentiments seem Quelch left Harvard for two dean- only natural for someone who wrote ships – one at the London Business his thesis on how consumers make School (where he had vice chancellor decisions in choosing their breakfast status and was also a professor) and cereals and earned a master’s degree another at the China Europe Inter- in nutrition science from Harvard’s national Business School in Shanghai T.H. Chan School of Public Health, (CEIBS, where he was also vice presi- an MBA from the Wharton School, dent and Distinguished Professor of University of Pennsylvania, and a International Management). doctorate in business with a market- Quelch’s connection to China dates John Quelch (left, as much best practice transfer as pos- ing special field from Harvard Busi- back to 1981, when he began visiting standing), who came sible, as fast as possible.” A nod to his ness School. frequently not long after the nation to UM in July as Asian connections sits on the credenza dean of the School of In July, Quelch left behind a dual opened the door to foreign business- in his office at the School: a piece of Business and UM vice primary appointment at Harvard es. His relationships in that country provost for executive artwork highlighting the four elements Business School and School of Public made him a good fit to take over as education, is excited of earth, wind, fire and water. Health and joined the University of dean of CEIBS in 2011. There, he of- to be a ’Cane, as his Over the years, Quelch also became Miami in the dual role as dean of the ten earned MBA students’ respect in license plate (above) familiar with the University of Miami. proclaims. School of Business and vice provost for part by telling them that he’d known He even co-wrote a paper titled executive education at the University. China since before they were born. “Don’t Forget Latin America” in UM President Julio Frenk, who “Chinese culture respects a historical 1992 with Joseph Ganitsky, director brought Quelch into the fold at perspective, so that was a very signifi- of the UM Center for International Harvard’s School of Public Health, cant claim to be able to make to these Business Education and Research was overjoyed to see his name on a list young people,” Quelch says. and a senior lecturer at the School. As of four finalists for the top post at the The most interesting part of his two the paper’s name suggests, he’s also School of Business. “Right away, he years at CEIBS, he says, was report- well acquainted with Latin America came in with several very fresh, innova- ing directly to the school’s president and the Caribbean. He and his wife tive ideas,” Frenk says. “He’s restruc- – who was an appointee of China’s have a vacation house in the U.S. tured his team and is moving quickly Communist Party; most Western busi- Virgin Islands and he has served on to take the business school to the next nesspeople who work in China report the boards of advisors to two business level in its upward trajectory [toward] instead to a regional vice president schools in Latin America. recognition as the top business school based in Hong Kong. in the hemisphere, with a broader glob- Under Quelch’s leadership, CEIBS’ DEVELOPING A RESEARCH PASSION al reach. He’s a very interdisciplinary rankings improved greatly, and annual As his career took him around the individual, and there’s a lot to be gained revenues increased by 31% to more world, Quelch developed a passion for from interdisciplinary approaches to than $100 million. “I discovered that exploring the intersection of business tackling complex problems.” it’s very important to get alignment and health. It’s an area he first delved on strategy with the Chinese,” he into during his doctoral work, which A WORLDLY ACADEMIC says. “Once you had alignment on the involved analyzing the marketing of Quelch spent his childhood in Australia strategy, implementation was not a ready-to-eat cereals.
PHOTO: ROCHELLE BRODER-SINGER ROCHELLE PHOTO: and England. He earned a bachelor’s problem. They were very keen to have
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28-31 Dean Fall 17r5.indd 29 11/22/17 1:33 AM His thesis advisor suggested he take a few courses in nutrition science so he wouldn’t be blindsided by making assumptions inconsistent with nutrition fundamentals. Quelch ended up taking enough classes for a master’s degree from the public health school – becoming one of the first to hold degrees from both the Harvard Business School and the School of Public Health. Initially, Quelch focused his work on the marketing of preventive health care programs, although he quickly migrated to more mainstream business and marketing. Yet, business and health kept drawing him back. A 1980 article he wrote for Milbank Memorial Fund Quarterly, “Marketing Principles and Quelch developed and presented a feelings. “It was very bittersweet,” the Future of Preventive Health Care,” series of 12 one-hour programs on Koh says. “I was happy for him and is considered seminal work in the field. marketing management for the Public happy for Miami, but disappointed to He first testified on preventive health Broadcasting System. know I’d no longer be working with before the U.S. Congress at the age of him day in and day out. He leaves his 27, and he has authored or co-authored places where he’s lived.” mark wherever he goes.” several books in the field. In recent During his joint appointment, In fact, Koh says, throughout years, Quelch’s research has focused on Quelch wrote multiple books; most Quelch’s years at Harvard, everybody the intersection between business and recently, “Building a Culture of loved working with him. “He has inex- prevention and wellness services. Health” (with co-author Emily C. haustible energy, and he makes things That focus was honed during his Boudreau, Springer, 2016). It outlines happen,” Koh explains. “He also has a joint appointment at Harvard’s busi- four pillars – consumer, employee, delightful sense of humor. In any dry ness and public health schools, which community and environmental meeting, he’d always offer an appropri- began in 2013, after he finished his health – that businesses can use to ate quip or a humorous comment that two-year appointment at CEIBS and build a culture of health (read more would be both educational and lighten returned to Harvard from his leave. in “Building a Culture of Health in the proceedings. When he walks into a There, he joined forces with How- Business,” page 32). He also worked room, he brings a sense of energy and ard Koh, Professor of the Practice on a forthcoming Oxford University humanity and wisdom.” of Public Health Leadership at the Press book that analyzes consumer As Quelch settles into his new Harvard School of Public Health. choice in American health care, role on campus – where he began Koh had recently returned from a advocating for increased choice but his first semester by preparing for stint as assistant secretary for health addressing the constraints in such a and then recovering from Hurricane in the Obama administration and was specialized marketplace. “You can’t Irma – the job’s rhythm and diverse leading a Harvard initiative explor- allow or expect the same unfettered mix of activities are familiar from his ing how businesses could promote consumer choice in health care deci- two previous deanships. He says the a culture of health. “He’s brilliant,” sion-making as you can in the case of first three to six months as a dean is Koh says of Quelch. “He just has this other products and services,” Quelch always dominated by meeting people uncanny way of understanding all explains. “Health care is different.” Although Quelch throughout the university and the of the nuances of what’s happening (above, standing) community. “You have to be able to at the intersection between private BECOMING A HURRICANE – enjoys teaching, he manage your time extremely well so businesses and public health, so his AND TAKING ONE ON has a long-established you’re not overwhelmed by tactical policy of not teaching insights and knowledge and perspec- When Quelch told his Harvard firefighting,” he says. “You have to any courses as dean – tive were invaluable. He also has a colleague about his new role at the although he will give also find time for strategic reflection
global perspective because of all the University of Miami, Koh had mixed cameo lectures. and deliberation.” PRODUCTIONS GORT PHOTO:
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28-31 Dean Fall 17r5.indd 30 11/22/17 1:33 AM During the past 35 years, Quelch’s case Quelch also keeps an eye toward most of this activity will be centered studies have sold more than 4 million cop- developing cross-school, cross-disci- around the business school, I’m hop- ies, the third highest in Harvard Business plinary, non-degree executive pro- ing all 10 schools and colleges will School history. grams in his role as vice provost for be served by this focus on executive executive education at the Univer- education,” the president explains. sity. He plans to revive and expand Despite hurricanes, Quelch has tak- Though Quelch enjoys teaching, these programs with more flexibility en an easy liking to Miami, a city he’d he has a well-established policy that around degree options, their timing visited about a dozen times before dictates he won’t teach any courses and presentation. “We’re not offering moving here. He lives with his wife as dean. “It’s too much of a distrac- a one-size-fits-all approach,” he says. in a Coral Gables apartment (he does tion,” he explains. But he will support “Today’s students are looking for not have kids), and he winds down innovation by doing cameo lectures in empowerment and flexibility.” from work by playing tennis on the new courses, including an upcoming Frenk expects Quelch’s influence public courts in Coconut Grove. one for a course taught by former UM to span the University. “Although President Donna Shalala, who is now INTRODUCTIONS a professor in the School’s Depart- ment of Health Sector Management and Policy, and Karoline Mortensen, Meaningful Mementos an associate professor in the depart- ment. In the class, Quelch will lead a Record that contains discussion of his recently completed Sen. Ted Kennedy’s case study on an urgent care company. speech about protect- Those students, Koh says, are in for ing the nation’s aviation a treat. “He’s a charismatic teacher,” system and includes he explains. “He can hold the atten- an article by Quelch tion of the classroom as much or bet- on how the well-run ter than anyone I’ve seen. He brings Massachusetts Port wisdom and humor to that position, as Authority and its tough he does with everything else.” governance practices As Quelch focuses on running could serve as a model the school and taking it to the next for the corporate world. level, he also is engaging the local The frame is signed by business community. “Obviously, Kennedy: “To John – one of the main constituencies of You met the deadline! business schools are the companies Dean John Quelch also on him the Commander response to the Sept. Congratulations!” that recruit from business schools,” has kept busy outside of of the Order of the 11, 2001, terrorist at- Next to that frame he says. “If you have a good knowl- academia. No stranger British Empire, an honor tacks. “The terrorists is another framed Con- edge of what those people are look- to serving on boards, he just one level below had boarded two of the gressional Record, this ing for, if you have a good ability singles out his 25 years knighthood. “The queen hijacked airplanes at Lo- one of a speech given to converse with them about their on the board of London- is very gracious, very gan, so we committed to by then-Rep. Edward own business problems and if you based WPP, the world’s easy to interact with,” becoming the nation’s Markey on the seventh have a good network of corporate largest marketing ser- he recalls. “She doesn’t first airport to install anniversary of 9/11, contacts, all of that can help you be vices company, as his say much, but she pays full passenger baggage where he entered for effective as dean.” Toward this end, favorite. But it’s his role close attention.” screening,” Quelch says. the record Quelch’s re- he launched a new Distinguished as chairman of the Brit- As chairman of the Pointing to a frame marks at the dedication Leaders Lecture Series in October. ish American Business Massachusetts Port hanging on the wall of the Logan Airport It brings business leaders to Storer Council of New England Authority from 2002 behind his desk, Quelch 9/11 memorial. “It’s the Auditorium to present their perspec- that landed him an to 2011, Quelch was says, “This is something best speech I’ve ever tives to the school and community. invite in 2011 to Buck- instrumental in over- personal and important given,” Quelch says. “This will help put our business ingham Palace. Queen seeing Boston Logan to me.” It’s an entry “I labored over it with school back at the center of the con- Elizabeth II bestowed International Airport’s from the Congressional great care.” –LC
PHOTO: STEVEN BOXALL STEVEN PHOTO: versation in Miami,” he says.
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28-31 Dean Fall 17r5.indd 31 11/22/17 1:33 AM ROYAL CARIBBEAN Cruises, Univi- sion, Johnson & Johnson and CVS are corporate leaders in building a culture of health. Their investments in “All employee, environmental, consumer and community health are delivering positive tangible returns, according to School of Business Dean John Quelch, who has been studying the American relationship between business and health for decades. “All American companies are in the health business, whether they like it or not,” Quelch says. “Rather than companies viewing health merely as an insur- ance expense to be controlled, every company – large or small – needs to embrace building a culture of health as a business opportunity.” are in the Quelch examined the multifaceted relationship between health and the private sector in a 2016 book, “Building a Culture of Health: A New Imperative for Business,” with Harvard Business health School co-author Emily C. Boudreau. “Adopting a culture of health en- ables business leaders to do their part for the benefit of their shareholders as well as society at large,” he writes business, in “Building a Culture of Health.” “Farsighted companies recognize the business opportunities presented by investing in health-related programs, in terms of increased revenues, reduced whether costs, greater productivity and im- proved brand reputation.” As an example, he cites Johnson & Johnson, which has achieved a $4 return for every dollar invested in employee they like health and wellness programs over 30 years. After CVS removed tobacco prod- ucts from store shelves and renamed itself CVS Health, the retailer found that new revenues surpassed the lost sales. it or not.” “Businesses already pay about one- fifth of the nation’s sky-high health Building a Culture of Health in Business: care costs,” Quelch notes in the book. “But traditional medical care influ- Dean John Quelch’s research offers effective strategies for ences population health outcomes far capitalizing on health-related investments. less than prevention strategies, from better diet and exercise, to improving By Richard Westlund (MBA ’83) education, housing and other social
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32-34 Dean's Research Fall 17r9.indd 32 11/22/17 1:17 AM PRIME EXAMPLES charge of wellness programs, a govern- The Four Pillars of Health in Action ment and community affairs division Examples of how four well-known corporations shape a piece of their population health footprints. and a sustainability manager focusing on environmental actions. “But in most companies, none of these executives are organizations have an ployees, Target charges talking to each other on a regular basis,” employee assistance each store manager Quelch says. program, but because with building partner- His recommendation: “Now is the of the stigma of mental ship programs with time to connect the dots under one se- illness, many employees health care providers nior executive. After all, environmental won’t take advantage and nonprofit organiza- health programs impact the health of of those services,” he tions, proactively help- local communities, and what business- explains. “Johnson & ing those communities es can do for community health can Johnson has one of improve their health, improve the quality, attraction, reten- Consumer Health – Lego about the purpose of the highest employee Quelch says. tion and motivation of employees.” “Lego is a toy company the company in improv- assistance program that has invested in ing child development. activation rates in the Environmental Health ASSESS AND CHANGE many social and child That’s really what Lego industry, and in today’s – Coca-Cola In his research, Quelch found that psychologists who is selling.” stressful society, it’s no “Coca-Cola set a 2020 most U.S. companies fall into three make sure its products coincidence that it also target for achieving categories in terms of their level of develop children’s Employee Health – has one of the healthi- water neutrality – put- commitment to what he calls “an inte- cognitive brain power,” Johnson & Johnson est employee bases.” ting back as much grated population health program.” Quelch says. “It’s not Quelch says Johnson clean water as it uses,” At the lowest level are companies just a safety concern & Johnson is doing “a Community Health Quelch says. “The com- that don’t want to engage with health about a block that fantastic job” address- – Target pany met that goal four issues beyond the basics of employee someone might swal- ing employee mental- A national retailer with years early.” – RW benefits, often because they are wor- low. It’s much more health issues. “Most many low-income em- ried about the potential costs. “That’s actually a high-risk approach” Quelch says. “If someone with an untreated conditions. In writing this book, we insurance, workplace practices and mental health problem is in the work- wanted to make CEOs aware of the wellness programs, but the health of force, the consequences can be very ways they can contribute to solving the the communities in which a company severe. Along with the damage to the health care crisis in the United States.” does business matters too. “Employees company’s brand and reputation, the spend over two-thirds of their time in CEO or president will have to live with WHAT DOES A ‘CULTURE OF HEALTH’ MEAN? their communities, and only one-third the knowledge that he or she could Quelch says that businesses seeking at work. If a community is not healthy, have done something to prevent a to make positive contributions to odds are the employees won’t be ei- tragedy, but chose to ignore it.” health and wellness should focus on ther,” Quelch says. And, organizations’ At the middle level are companies optimizing health-promoting actions environmental policies (or lack thereof) that recognize the importance of health across four pillars: consumer, employ- affect individual and population health initiatives, but don’t want to take the ee, community and environmental. through, for instance, efforts to manage lead. “These businesses might check The safety, integrity and healthful- emissions and wastewater. the boxes of a wellness program, an ness of the products and services com- A true culture of health requires inte- employee assistance program and an panies offer is important to consumer grating programs across these four pillars employee hotline, but ignore environ- health, but this is about more than just – something few companies have done, mental or community health,” Quelch traditional risk management. Quelch Quelch says. Many have health-related says. “Their CEOs need to see the stresses that this pillar is about finding activities scattered across different many potential benefits – for em- ways to build health into a company’s departments, but no true coordination ployees, customers and communities vision and values. among them. For example, an automak- – from a deeper level of engagement Companies affect employee physi- er might have a quality assurance team with health-related programs.” cal and mental health through efforts looking at consumer safety and product Finally, some exemplary companies such as employer-sponsored health design, a human resources executive in embrace the challenge of building a
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32-34 Dean's Research Fall 17r9.indd 33 11/22/17 1:17 AM THREE LEVELS culture of health and are leaders in do- and physical health issues for drivers, ing so. Quelch says a good example is such as whether being your own boss Where Does Your Company Fall? Miami-based Royal Caribbean Cruises, reduces or increases the psychological The three levels of commitment to an integrated which is taking a coordinated approach stress on individuals. Environmental population health foundation: to its population health footprint, factors also come into play, such as recognizing the importance to its em- reducing a community’s overall vehicle TOP LEVEL: Take a coordinated approach to every aspect ployees, customers and brand. emissions by encouraging use of public of their public health footprint, incorporating consumer, The cruise giant seeks to keep transit and ride sharing.” employee, community and environmental health passengers healthy with protocols that Have the CEO champion the include monitoring for sickness when health initiative in order to drive MIDDLE LEVEL: Go beyond the basics with additional well- they board a ship and inspecting all the organization forward and ness initiatives, but not deeply engaged in health toilets before the ship sails – both of motivate others to model this BOTTOM LEVEL: Engaged only in basics of employee benefits which are part of its efforts to avoid behavior. Quelch cites Indra Nooyi, and health insurance a norovirus outbreak. The company chairperson and CEO of PepsiCo, as a takes similar care with monitoring and prime example of how much impact a managing the health of its employees. CEO can have. “When she took over at In addition, it has environmental health Pepsi, she pushed to change the formu- initiatives in place, such as recycling lation and mix of products in a healthy changes in its operations to reduce its and treating wastewater and reducing direction,” Quelch says. “She received environmental impact, while a mass- carbon dioxide emissions, and is active a lot of pushback at first, but now she is market retailer might get the biggest in the community health sector, sup- perceived as a prescient hero in the food return from a new employee health porting ocean management and wildlife and beverage sector.” program.” protection programs, as well as donating Appoint a chief health officer Measure the company’s impact furnishings, food and other goods to to oversee the company’s health, across the pillars and develop an communities at its ports of call. safety and environmental impacts overall score for the company’s “This integrated approach to a across all four pillars. “Every busi- public health footprint. Researchers culture of health can be considered ness needs a senior leader reporting are working on such metrics. “Having reputation-building for the long term,” to a committed CEO,” Quelch says. a compelling scorecard that leadership, Quelch says. “Simply put, it is the right “Having a point person on the leader- employees and investors can use to see thing to do.” ship team – preferably a line manager how a company is doing will be one – to pull the strands together is critical of the most important steps to moving BEST PRACTICES for success.” the needle,” Quelch says. For businesses that are thinking Develop a network of line manag- These best practices, he emphasizes, about implementing a culture of ers who can champion the culture are not just for large companies. “A health, Quelch offers several practical of health and start conversations small or midsize company can create suggestions, drawn from the best throughout the organization. “Ev- a health task force to brainstorm ideas practices he observed in his research. ery manager, supervisor and employee for making a difference,” he says. “Collectively, every company lays should feel empowered to make sug- “And just as small businesses col- down a public health footprint, wit- gestions,” Quelch says. “It could be as laborate with their peers through local tingly or unwittingly,” he explains. simple as asking for healthy breakfast chambers of commerce to get behind “Companies should understand and options at the cafeteria or organizing local education-related projects, they calculate their public health footprint a team competition around a fitness can partner to put community health and then seek ways to improve it.” activity. Many of the best suggestions strategies into place.” Conduct a health audit to iden- bubble up from the rank and file, so be Whether big or small, Quelch says, tify current programs and their ready to listen to their ideas.” companies looking for a place to start impact. That can open the door to Look for the “big wins” that should target one or two areas (from a broad-ranging discussion of all four leverage the company’s resources the four pillars) that they can impact pillars in Quelch’s model. to deliver the biggest net-positive relatively quickly. “The point is to “Take Uber for example,” he health impacts. “A B2B company get started” he urges. “America’s says. “The company faces health might focus on educating its customers health depends on all businesses do- issues related to customer safety and about better health,” Quelch says. “A ing their part in building a culture of well-being. There are also mental manufacturing company could make health.”
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32-34 Dean's Research Fall 17r9.indd 34 11/22/17 1:17 AM Top Row: Sundaresh Ramnath, School of Business associate professor and chair of ac- counting; Michelle Anderson of EY; David Mullings (BS ’00, MBA ’03) of RunLive. Middle Row: Jamie Byington (BBA ’81), Ivan Garces of Kaufman Rossin, Robert Vil- lanueva of Q6 Cyber. Bottom Row: Mark Margulies (BBA ’89, MST ’89) of Grant Thornton, Roberto Valdez of Kaufman Rossin and keynote speaker Marta Alfonso (JD ’98, BBA ‘83) of MBAF.
today's economy is marked by confusion and Tax Reform, ambiguity. Turn it into an opportunity to grow. That was the challenge from Marta Alfonso Cybersecurity (BBA ’83, JD ’98), litigation and valuation prin- cipal at MBAF Certified Public Accountants and Advisors, to the audience at the 2017 Business and Regulation ForUM hosted by the School’s Department of Accounting. The May 19 event, titled “Post- Post-Election Challenges and Opportunities Election Challenges and Opportunities,” focused By Richard Westlund (MBA ’83) on corporate tax reform, cybersecurity risks and
PHOTOS: GORT PRODUCTIONS GORT PHOTOS: financial regulations, among other timely topics.
Fall 2017 BusinessMiami 35 TAKEAWAY Alfonso’s keynote speech revolved money. Criminals are also targeting around personal growth during Minimizing Cyber Threats trading firms and retirement ac- business uncertainty. “We must counts,” he added. never stop learning or challenging • Apply software updates as quickly as possible, since Villanueva was also a panelist in ourselves,” she said. “That means ac- many contain security patches. a group discussion on cybersecu- celerating your intellect with informa- • Back up all your data, all the time, and retain older ver- rity moderated by Robert Valdez, tion – not noise – so you make good sions as well. supervisor of risk advisory services decisions for your career, your clients • Unplug computers at night so hackers can’t access them. at Kaufman Rossin. Participants and your organization.” • Keep phishing schemes front of mind and think before began with a discussion about lessons you click. learned from that week’s WannaCry FACING CYBER THREATS • Train employees on good security practices, and enforce attack. “Think before you click,” said During a week that saw the global those practices. Villanueva, explaining that phishing WannaCry ransomware attack affect • Plan your response to a potential cyber incident. schemes are designed to get users computers and organizations around to open email messages that contain the world, cybersecurity was a hidden malware. particularly timely issue on the table Prentis Brooks, IT security archi- during multiple ForUM sessions. Europe, Asia and Latin America.” One tect for Royal Caribbean Cruises Robert Villanueva, executive vice store, for instance, has 100,000 U.S. Ltd., said good network hygiene is president of Q6 Cyber and a retired credit cards for sale and will issue a essential. “In this case, Microsoft is- member of the U.S. Secret Service’s refund if a card is no longer valid. sued a security patch for the software Cyber Intelligence Section, gave at- South Florida is an attractive target back in March,” he said. “Had it been tendees an in-depth look at “Eurasian for these financial crimes for several applied then, the affected networks Cybercrime and Cyber Threat Intel- reasons, Villanueva explained. The wouldn’t have had to worry about the ligence” – including a live tour of the region’s many wealthy residents and worm aspect of the attack.” “dark web,” where criminals can buy international visitors may not take Hiram de Amo, a cybersecurity or sell hacking tools, stolen credit card basic security precautions. Miami consultant for Berkeley Research numbers and other financial informa- is also an attractive destination for Group, emphasized the importance tion. “There are hundreds of highly free-spending cyber criminals and is of backing up data and unplugging developed and efficient marketplaces showcased in online recruiting videos computers at night so they are no offering financial crime as a service,” posted by criminal organizations. He longer visible to hackers. In general, he said. “They are mostly situated in shared examples of Miami’s attraction develop and enforce good security Eastern Europe, where they target for criminals: Alexander Kostyukov, processes, said Maurice Liddell, companies and individuals in the U.S., known as the “Miami-Russian Rap- managing director for Technology per,” stole more than $8 million from Advisory Services at BDO. “Along U.S. citizens and financial institutions with training, you should also plan TAKEAWAY before he was arrested in Miami in how you would respond to a cyber 2015. Aleksei Satalov, a hacker from incident,” he added. Regulations Likely to Estonia, was arrested in 2013 at a Remain in Force party on South Beach. Satalov had TAX POLICY AND REFORM control of 100,000 computers that Two panels looked at changes in the During the May conference, participants said it was too were used to launch cyberattacks and tax code, as well as other changes early to assess the impact of the Trump administration to blackmail companies. affecting accounting and auditing. on federal financial regulations. But they did speculate Cyber threats companies should be Joe Genovese, an adjunct accounting on what to expect. These are the regulations panelists on the lookout for include hacking professor at the School of Business, predicted would remain in force: into an organization’s networks to moderated the panel on accounting • Anti-money laundering, bank security and “know your steal data or lock up information for and auditing updates. That discussion customer” laws and regulations ransom, point-of-sale (POS) malware built on a tax-reform panel kicked off • Foreign Corrupt Practices Act enforcement that steals payment card data and the by Mark Margulies (BBA ’89, MST • Sales and customer practice restrictions and require- theft of funds from law firms’ escrow ’89), chair of the school’s Accounting ments for banks accounts, Villanueva said. “We also Advisory Board and Southeast Region • Some financial consumer protection rules see compromised merchant accounts tax practice leader for Grant Thornton and fake accounts used to launder LLP. Margulies noted that it’s been
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35-37 Business ForUM Fall 17r7.indd 36 11/22/17 1:29 PM 30 years since the last tax reform act. competitive in the global market. Richard Sacher, an audit services Daniel Rahill, managing director “Lowering that rate has bipartisan partner at Grant Thornton, said that and Midwest Tax Practice leader for agreement, and this is at the top of new standards regarding leasing and Alvarez & Marsal, moderated that the list as to what might be enacted recognition of revenue will affect the discussion with Mel Schwarz, partner by Congress,” Schwarz said. balance sheet for many health care and director of tax legislative affairs at George Pita (BBA ’83), chief finan- organizations. Lenders are eyeing Grant Thornton in Washington, and cial officer of MasTec, said the $6 bil- other revenue recognition changes Mark Mesler, principal for tax contro- lion Miami engineering company and that will go into effect, said Russell versy and risk management at Ernst & its infrastructure clients would benefit Adamcyzk (BBA ’97, MBA ’98), a Young in Atlanta. from corporate tax reform and more financial institutions partner at RSM. Mesler said the U.S. corporate tax consistency in regulations. He added “Our clients are also looking at the rate of 35% is one of highest in the that MasTec is now studying 16 new credit impairment standard, which world. In addition, the U.S. taxes accounting standards across its service requires them to estimate the loss income earned throughout the world, lines on issues such as stock-based on a loan when it is issued,” he said. making U.S. multinationals less compensation. “That’s a very big undertaking.”
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35-37 Business ForUM Fall 17r8.indd 37 11/27/17 11:24 AM 38-39 Donor Fall 17 R6.indd 38 By Richard Westlund (MBA ’83) learning andstrengthen theSchool’s future. advance globalresearch, enhance student Endowed chairs attract top scholars, Raising theBar Luo hold three of the School’s Manuel Santos andYadong A. “Parsu” Parasuraman, endowed faculty chairs.
from thechairof adepartment. includes aphysical seat andisseparate and scholarship. Anendowed chairrarely ber whohasshown exemplary teaching ued financialsupport to a faculty mem- or namedprofessorship provides contin- and namedby adonor, anendowed chair A: Created by asizeable giftdesignated Q: What isanendowed chair? enhancing ourSchool’s brand, benefiting our tive, endowed chairs play animportant role in O. Barnes Scholar. “From astrategic perspec- holds anendowed chairhimself; heisaLeslie and vice dean for faculty development, who Anuj Mehrotra, theSchool’s senior vice dean transform global business andsociety,” says mission to educate principledleaders who isting strengths inresearch our andfurther help usbuilduponthebusiness school’s ex mist. “We are lookingfor candidates whowill in arange of fields, advertising inThe Econo- search for sixnew chaired faculty positions impact onourstudents,” Kumar says. donor’s giftof anendowed chair hasalasting ars world-class and supporting research, a Conference. “By attracting leading schol- launch theSchool’s annualWomen inFinance sional conferences. Healso used fundsto help including presentations andpapers atprofes endowed chairto student support research, Kumar hasused some of thefundsfrom his in the fast-growing field of behavioral finance. nancial markets andisnow aleading scholar research onhow psychology affects thefi- sor of Finance, hehasconducted extensive School’s Gabelli Asset Management Profes join theSchool’s faculty eight years ago. The a majorconsideration whenhedecidedto says thepossibility of receiving achairwas considering theircareer options. AlokKumar Talents” initiative. more of them, through theUniversity’s “100 Julio Frenk hasmadeitapriority to create lence – maintaining aschool’s level of faculty excel- This fall, theSchool launchedaglobal Endowed chairs don’t justfaculty. support Top faculty lookfor endowed chairs when Endowed chairs are crucialto raising and
one of thereasons UMPresident 11/22/17 1:03 AM - - -
PHOTO: LOREM IPSUM PLURIBUS CARPE students and alumni,” Mehrotra adds. “When I came to the business school “Endowments can kick-start a virtuous in 1994, it was a real honor to be offered cycle, where top faculty attracts top the McLamore chair,” Parasuraman students who collaborate in pushing the says. “Through the years, this endow- frontiers of business knowledge. It’s a ment has given me the resources to con- gift that sustains excellence over the tinue my work in the area of marketing long term and has a lasting impact on services and move into new frontiers of future generations of students.” research.” On a personal level, Parasura- Noting the School’s commitment man said he was pleased to meet James to hemispheric leadership, Mehrotra McLamore, co-founder of Burger King, says endowed chairs also provide an soon after his arrival, and is glad the The Gift enduring foundation for advancing McLamore family has continued to have faculty teaching, research and service. close ties to the School. “Endowing a chair allows us to offer Along with creating and disseminat- that the highest honor and recognition for a ing new knowledge, endowed chairs renowned scholar,” he says. “It’s a very can make a powerful contribution to Gives Back important consideration for faculty, and student learning, Parasuraman adds. it also makes a difference to students “Leading researchers are also good Looking for a way to provide for your who are searching for a high-quality teachers,” he says. “They can leverage future and the future of the School of business education.” their own research in the real world Business Administration? Establish a For instance, Andrew J. Leone, the to get students excited and engaged gift annuity for the School through the Warren P. Johnson Professor of Account- in the classroom. Having a professor ing, has made notable contributions to teach from his or her own research, in University of Miami. This can provide his field and was recognized with the addition to the textbook, can motivate you with a secure income for life while “Provost’s University-Wide Research students and help them realize the providing the School with crucial funding Award” in 2014, the American Account- value of an undergraduate or graduate for the next generation of business ing Association’s “Notable Contribution business degree.” students. to the Literature Award” in 2013 and Em- Endowed chairs also help attract erald Management Review’s “Citations of advanced graduate students to the With a gift annuity, you receive: Excellence Award” in 2012. School’s doctoral program, Parasura- Yadong Luo, the School’s Emery M. man says. Many applicants look at the • Fixed, guaranteed, partially tax-free Findley Distinguished Chair and profes- faculty’s qualifications and honors as income for life sor of management, is recognized as part of the screening process before • A charitable tax deduction one of the world’s top research scholars making an enrollment decision. • Potential capital gain tax savings in international management. He has The School of Business has fewer • Reduced estate taxes published more than 170 articles in endowed chairs than many business major refereed journals; received two schools of the same size and age. dozen research, teaching and service To continue to compete with those Calculate the benefits of a gift annuity awards; and was elected as a fellow of schools to attract the best and bright- to the School of Business by visiting the Academy of International Business. est faculty members, students and www.miami.edu/plannedgiving. For more Other holders of endowed chairs PhD students, the School needs to include Manuel Santos, professor of create more endowed chairs. It’s a high information about how you can leave a economics and the James L. Knight priority for Dean John Quelch. “Under legacy and secure your future, please Chair; Yongtao Guan, department chair the leadership of President Frenk, we contact: and Leslie O. Barnes Scholar, Manage- are building a global research univer- Cynthia L. Beamish, BS ’82 ment Science; A. “Parsu” Parasuraman, sity for the 21st century,” he says. “By Executive Director, Office of Estate professor of marketing and the James endowing professorships and chairs, and Gift Planning W. McLamore Chair; Douglas Emery, our donors have a powerful impact on (305) 284-2914 or toll-free (800) 529-6935, Bank of America Scholar and professor our school, strengthening our faculty of finance; and Michael Tsiros, Patrick with men and women who will train the [email protected] J. Cesarano Scholar and professor of next generation of scholars and busi-
PHOTO: STEVEN BOXALL STEVEN PHOTO: marketing. ness leaders.”
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38-39 Donor Fall 17 R6.indd 39 11/22/17 1:03 AM Events HAPPENINGS ON CAMPUS AND OFF
1 2 Long Island Summer Send-off Home of George Schwertl and Alicia Bolognesi-Schwertl, Aug. 3 1 Parents and their incoming freshmen enjoyed food, drinks and the opportuni- ty to meet with Dean John Quelch and Ann M. Olazábal (MBA ‘97), vice dean for undergraduate business education. 2 A bedazzled Hurricanes bottle, shown off by Nancy Hullihen, the School’s executive director of alumni relations and development. Young MBA Meet and Greet with Dean John Quelch: Building a Cul- 3 4 ture of Health – A New Imperative for Business School of Business, Aug. 22 3 Micelli Bianchini (BS ’11, MBA ’14), Dean John Quelch and Isabela Montalvo (AB ’13, MBA ’15) NYC Alumni Reception at UBS Sept. 26 4 School of Business parent Jeff Brown (BBA ’81), a member of the UM President’s Council, with Bermont-Carlin Scholars Joshua Brown, Kyle Long and David Eides. 5 Dean John Quelch, event host Michael 5 6 Belasco (BBA ’98) of UBS and Nancy Hullihen, the School’s executive director of alumni relations and development. 6 Goldstein-Milo Scholar Nicole Peicher with Robert Milo (BBA ’65), Amy Milo (BBA ’65), parent Michael Goldstein, and Goldstein-Milo Scholars Kaitlin Castillo and Michelle Goldstein.
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40-47 BOB_Fall 17 R17.indd 40 11/22/17 1:23 PM Corporate Sustainability 1 Distinguished Leaders Symposium Lecture: Global Trends in on Green Finance Marketing, Advertising School of Business, Oct. 18 and Digital 5 Jeffrey Cannon, senior vice president With Sir Martin Sorrell, Founder and CEO and senior lender at First GREEN Bank; of WPP Bashar Qasem, president and CEO of Az- School of Business, Oct. 5 zad Asset Management; Megan Starr, vice 1 Sir Martin Sorrell; Dean John Quelch; president for ESG and Impact Investment Michael Tsiros, the School’s Patrick J. Ce- at Goldman Sachs Asset Management; sarano Scholar and department chair and Albert Slap, CEO of Coastal Risk Manage- professor of marketing; Joseph Johnson, ment; and Anthony Eames, vice president associate professor of marketing; UM and director of responsible investment Trustee Richard Fain, chairman and CEO strategy at Eaton Vance. of Royal Caribbean Cruises; and Cori Rice, president of Hill + Knowlton/SAMCOR.
2 3 Health Sector Management and Policy Reception and Reunion School of Business, Oct. 6 2 Physician Wesley Francis, UHealth physician James Trice and Leslie Kirkland, UHealth director of IT. 3 Attendees hammed it up on the terrace of the Executive Dining Room.
Distinguished Leaders More photos from Lecture: The Art of the all of these events: Deal – How to Negotiate magazine.bus. Complex Mergers & miami.edu Acquisitions With Scott Barshay, Global Head for 4 5 the Mergers & Acquisitions Practice at Paul, Weiss School of Business, Oct. 16 4 (Clockwise, from top left) Scott Barshay; Ann M. Olazábal (MBA ’97), the School’s vice dean for undergraduate business education and chair and professor of business law; René Sacasas, a business law professor at the School; and Patricia Sánchez Abril, the School’s vice dean for graduate business programs and a profes- sor of business law.
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40-47 BOB_Fall 17 R17.indd 41 11/22/17 1:24 PM EVENTS
Homecoming 1 2
More than 270 School of Business alumni, students and faculty turned out for this year’s School of Busi- ness Homecoming festivities. They included the opportunity to hear from Dean John Quelch at a town hall, the first-ever Hurricane Lane School of Business history exhibit and a cookout in Cesarano Plaza before everyone headed over to the Univer- sity’s parade. 3 Those marking 50 years since graduation had fun recalling the days when women’s dorms had curfews and men wore shirts and ties to foot- ball games. Back then, “it was a lot more formal,” said Silas R. Johnson Jr. (BBA ’67), a retired U.S. Air Force major general who gladly traveled from Virginia to celebrate the half- century reunion. “We still wore long pants and collared shirts to class. We didn’t wear T-shirts much.” 4 5
1 Memorabilia on Hurricane Lane. 2 Mentor Mahesh Mirpuri (BBA ’01, MBA ’04, MPRA ’06) and his mentee, School of Business student Nianyi Guo, during the Homecoming Mentor Meet Up. 3 School of Business MBA alumni in a special reunion photo. 4 The Ladytown band from the UM Frost School of Music performed at the cookout. 5 UM President’s Council member Den- nis Lingle (BBA ’73), Gail Lingle, Mari- anela Hernandez (BBA ’83, MBA ’86, MS 6 ’86) and UM Trustee Ron Stone (BBA ’73), a member of the Alumni Associa- tion Board of Directors. Read more about Home- 6 Dean Quelch celebrates the coming and the dean’s town Class of 1967’s 50th reunion hall, and check out more photos, at magazine.bus. with Stanley Papuga (BBA ’67), miami.edu/homecoming2017 Don Lessne (BBA ’67) and Si Johnson (BBA ’67). PHOTOS: GORT PRODUCTIONS GORT PHOTOS:
42 BusinessMiami Fall 2017 UPDATES FROM AROUND THE WORLD Alumni News
quickly worked her way up the ladder in retail. Her roles at different retail- ers took her to Asia, Europe, Latin America, North Africa, North America and the Middle East. Along the way, she gained experience in everything from international retail strategy and business development to marketing, buying, merchandising, store opera- tions, product development and supply chain management. No move was random. “Every move I made was because I saw an opportunity to gain more knowledge,” Rosen says. With that deep foundation, she eventually held executive positions at such promi- nent retailers as Saks Fifth Avenue and Pebble Beach Company. Rosen did eventually become a con- sultant, working with CEOs and senior executives at leading retail companies, and advising new brands that wanted to enter the fashion industry. By 2013, she was an associate partner at retail boutique consulting firm Parker Avery Group. In 2015 Rosen began working with ELEVEN by Venus Williams, an activewear company founded by the tennis star. “One day, Venus and I were talking, and she said, ‘I don’t want to have to find a replacement for From Saks to Startup you when you go – I want you to stay ILANA ROSEN, BBA ’96 on here,’” recalls Rosen. Rosen agreed, COO, ELEVEN BY VENUS WILLIAMS, PALM BEACH becoming the Palm Beach-based com- BY PETER HAAPANIEMI pany’s chief operating officer. At the startup, Rosen makes good use of her background. “Being part of fresh out of the School of Business, a startup, you have the ability to kind Ilana Rosen (BBA ’96) turned down of twist and turn and grow the business a coveted consulting job offer and in- in unique ways,” she says. “I get to be stead went to work in retail stores. It very hands-on.” Rosen enjoys being shocked her friends, since she knew involved in virtually all aspects of the she wanted a career in consulting in business, including creative and brand- the retail industry. “I like to know ing. “Believe me, I spend plenty of how things really work, and I wanted time with spreadsheets and financials, to find out more,” explains Rosen, but I do get to be both a left-brain and adding that she was “doing the grunt right-brain person here,” she says. And Ilana Rosen’s retail work 10 to 12 hours a day, weekends it all seems to be working. Since Rosen experience has taken and holidays, and learning the busi- started, she says, “the company has her to Asia, Europe, ness from the bottom up.” grown by about four times. We’re ex- Latin America, Rosen, who had a double major panding internationally. And we have a North Africa and the
PHOTO: STEVE BOXALL STEVE PHOTO: Middle East. in entrepreneurship and marketing, lot of growth ahead of us.”
Fall 2017 BusinessMiami 43 ALUMNI NEWS
class Pal executive. That’s helped Bvddy grow to nine employees, who all work [ notes] in Miami’s Wynwood district. Building companies was always the aim for Venezuela-born Ast, S 1960 whose School of Business stud- SHARON C. BROWN (BBA ’66) – one of ies focused on entrepreneurship. Florida’s first female accountants, the first During his senior year, he and some female president of the Florida Institute of friends launched their first technol- CPAs (FICPA) and former associate dean ogy venture, Dangle, to help friends of the School of Business – was honored exchange money. The project fizzled, as School of Business Accounting Alumna but it taught them key lessons. “We of the Year at the 2017 Business ForUM. learned it’s not only about the tech,” TERRY FORCHT (MBA ’61), founder and Ast says. “It’s about understanding president of the Forcht Group in Kentucky, how a business works and how to run was featured in the book “Unbridled Spirit: a company.” Lessons in Life and Business from Ken- After graduation, the group began tucky’s Most Successful Entrepreneurs.” building tech platforms for others RONALD SCHNEIDER (BBA ’65) published through an accelerator they called “Out of Our Heads: The Rolling Stones, Ffwd Labs. They took equity inter- The Beatles and Me,” about his time as ests in the ventures they helped to tour manager, moneyman and confidante build. Then, they tested out Bvddy to The Rolling Stones. Making ‘Tinder for Athletes’ in Miami, and in July 2016 officially PEDRO AST, BBA ’13 launched it for some half dozen sports. 1970S FOUNDER AND CEO, BVDDY, MIAMI Today, the free Bvddy app is JOSE ASTIGARRAGA (BBA ’75, JD ’78), a BY DOREEN HEMLOCK available for iPhone and Android in partner at Reed Smith, was named one of multiple cities and for more than 75 Super Lawyers’ “Top 100 Lawyers in the for recreational sports players, sports. Running is the most popular Miami Area.” finding companions to play with can activity and tennis is second, with STEVEN D. GINSBURG (BBA ’73, JD be a real chore. Pedro Ast (BBA ’13), Los Angeles the busiest city for ’76), vice chair of the Banking Industry a former ’Canes and professional matches. Users are a median age of Practice Group at Duane Morris, gave tennis player, knows this firsthand; he 24 and mainly college grads, says presentations at this year’s Mortgage often struggled to find players at his Ast, 28. Bankers Association Legal Issues and skill level. His own experiences led Once Bvddy tops 1 million users Regulatory Compliance Conference and him to develop an app that connects (hopefully this year), the team plans American Bar Association Section of players for nearly 80 activities, from to earn revenue from an array of Litigation. He also recently moderated a running and basketball to yoga and, freemium features and premium panel for the American Bar Association of course, tennis. More than half a accounts. The enhancements will and wrote articles for ALM Media, the million people already have signed let users contact people outside ABA and Lexology, in addition to writing up in Miami, San Francisco and other their buddy network, much like a chapter in the Florida Bar’s Florida Civil U.S. cities. LinkedIn’s InMail, he explains. Practice Before Trial. Bvddy.com uses algorithms to sug- Moving from student to entrepre- BRIAN HART (BBA ’75), a member of the gest matches for players based on how neur, Ast said he’s recognized “how UM Citizens Board, joined law firm Carlton often people play a sport, their skill important it is not to rush things and Fields as a shareholder and member of level, punctuality and other criteria. really make sure you’re focusing on its Real Estate and Commercial Finance Users swipe right with one another the core of what you do.” He’s also re- Practice Group. A former pro and to become sports buddies, in what’s alized the value of a strong team. “You ‘Canes tennis been called “Tinder for Athletes.” want to be lean, but as you progress 1980S player, Pedro Ast Ast and his team at Bvddy have and understand your real needs, you used his tech and THOMAS P. FLAVIN (MBA ’80) was elected raised almost $3 million from inves- understand where to spend and where entrepreneurial to Fidelity Bank of Florida’s board of skills to create the tors, including nearly $2 million from to cut,” he says. “Spend on your tal-
directors. Flavin is a principal and founding Bvddy app. funders led by IDC Group and a Pay- ent, not on marketing agencies.” BOXALL STEVEN PHOTO:
44 BusinessMiami Fall 2017 member of Flavin, Nooney & Person CPAs Helping Governments Protect & Advisors in Brevard County. Rainforests Around the World JOHN HIXON (MBA ’85) launched Salt ARNOLD NEWMAN, BBA ’62 Creek Biosciences, a consultancy to advise EXECUTIVE DIRECTOR, INTERNATIONAL SOCIETY FOR THE PRESERVATION startup and small biopharmaceutical com- OF THE TROPICAL RAINFOREST, SHERMAN OAKS, CALIFORNIA panies on the commercial aspects of early- BY JENNIFER PELLET phase development. Hixon retired from Eli Lilly and Company earlier this year. growing up, Arnold Newman spent the couple nonetheless emerged from ANNE PARDUCCI (BBA ’82), principal virtually every free minute exploring the ordeal infatuated with the forest’s and founder of production company ponds, rivers and waterways, catching natural beauty. “When you are living in CaribouKids and a member of the UM turtles and frogs both in his home- it, you come to appreciate the forest,” President’s Council, was appointed to the town of Forest Hills, New York, and Newman says. “We were immersed in it Build-A-Bear Workshop board of directors. at summer camp in West Copake, and transfixed by it.” HOWARD M. SREBNICK (MBA ’87), a part- New York. By senior year of high Since then, he has worked in 80 ner at Srebnick Kornspan & Stumpf, was school, he was determined to head for different tropical forest nations, advis- named one of Super Lawyers’ “Top 100 a school near the Everglades. ing governments on forest preserve Lawyers in the Miami Area.” “I was accepted to MIT, but I establishment, maintenance and picked UM instead,” says Newman, ecotourism. Along the way, Newman 1990S a member of the UM President’s wrote three books and founded several MERCEDES ARÁOZ (MA ’91) was named Council. He spent his college career organizations devoted to preserving and prime minister of Peru. The economist was studying international marketing protecting rainforests around the world. previously vice president of the country. and exploring Florida’s subtropical Currently executive director of the In- BRENDA YESTER BATY (BBA ’90), CEO of wilderness. “I worked at the Miami ternational Society for the Preservation Brenda Yester Baty Advisory Services, Serpentarium Laboratories, catch- of the Tropical Rainforest, Newman became chair of the national board of ing water moccasins and rattlesnakes also founded the Cathedral Rainforest directors of Make-a-Wish of America. so they could extract the venom to Science preserve in Costa Rica. His She is also chair of the UM Alumni As- produce antivenom to treat snakebite work has won accolades from celebrities sociation and a member of the UM Board victims,” he says. “I would have never like Robert Redford, Jane Goodall and of Trustees. had those experiences at MIT.” the Dalai Lama, who wrote the preface, ROB BECHT (MBA ’94) joined the School of Newman quickly understood that, introduction and foreword to New- Newman works Business as executive director of business as much as he loved nature, history and man’s 2002 book “Tropical Rainforest: to slow down operations. tropical rainforest science, working in a lab was not for Our Most Valuable and Endangered CHRISTOPHER COLEMAN (BBA ’96, MPRA denigration, which him. “I needed to go into the field,” Habitat, with a Blueprint for its Survival is approaching 100 ’97) is vice president of finance at Léman he says. “This was a part of my being.” into the Third Millennium.” acres per minute. Manhattan Preparatory School. While foraging for berries and doing JOSHUA CROSSMAN (BBA ’95) joined daily battle with swarms of mosquitoes Boston Private as a senior wealth advisor is not for everyone, Newman found the in its Palm Beach Gardens office. experience of trekking through subtrop- BRUCE FOLLANSBEE (MBA ’91), director ical rain forests exhilarating. Among his at Expense Reduction Analysts, joined the most memorable experiences is a 1965 boards of nonprofits Together Center and trip to Colombia with his wife, Arlene Transition Business Advisors. Ash Newman (AB ’63), whom he met ALEXIS GONZALEZ (BBA ’94, JD ’99), was at UM. “It was our first tropical forest appointed to Miami-Dade County’s Small expedition, and the bush pilot transport- Business Enterprise Advisory Board. Gon- ing us was forced to make an emer- zales is currently managing shareholder gency landing, so we had to make our of AG Law. way to a certain bend in the river where ANTHONY GUTIERREZ (BBA ’95, MSTX we would be rescued,” he recounts. ’97) was promoted to senior tax director Feasted on by clouds of mosquitoes at Berkowitz Pollack Brant Advisors and and subsisting on what they could hunt Accountants.
PHOTO: RYAN SCHUDE RYAN PHOTO: and gather – Newman lost 28 pounds – DARREN HAIMER (BBA ’99, MBA ’04)
Fall 2017 BusinessMiami 45
40-47 BOB_Fall 17 R17.indd 45 11/22/17 5:50 PM ALUMNI NEWS
became vice president of advertising and 1971. “I started off by installing the general manager at the Bradenton Herald. first turnkey computerized system for DOLLY HERNANDEZ (BBA ’98, JD ’01) any exchange in the country – maybe joined Richman Greer, P.A., a Florida-based the world – at the Philadelphia Stock law firm that works with complex business Exchange,” he says, noting that seminal disputes and commercial transactions. changes to the industry were underway MARILYN HETT (MBA ’96), tourism at the time. New rules allowed for development manager for the Economic negotiation of commission rates, and Development Department of Hillsborough that paved the way for the advent of dis- County, runs the Hillsborough County count stock trading firms. It also allowed Historic Preservation Challenge Grant institutions to join stock exchanges, program. The program received an award which had been the private domain of for outstanding achievement at the sole proprietors and partnerships. Florida Trust for Historic Preservation The relatively new derivatives mar- 2017 Annual Conference and earned ket was also ramping up at the time, first place in the Tampa Bay Regional and the Philadelphia Stock Exchange Planning Council’s Built Environment was eager to join the action. Since the category. Hett also received the James Chicago Board Options Exchange and Felt Creative Counseling Award from The the American Stock Exchange had Counselors of Real Estate professional cornered equity stock options, Staloff association. turned his attention to currencies, de- SCOTT HOWELL (MA ’98) joined Tenet The Father of Foreign veloping the entire concept of foreign Diagnostics as its chief medical officer; a Currency Options currency options. “We launched with practicing physician at Kaiser Permanente ARNIE STALOFF, BBA ’67 our first trade on Dec. 12, 1982. It was Los Angeles Medical Center’s Department CHERRY HILL, NEW JERSEY meant to be on my birthday, but my of Addiction Medicine, he was previously BY JENNIFER PELLET birthday was a Saturday so we had to executive medical director at Heritage wait,” he recalls. Provider Network. ceo of a major financial exchange, In 1990, Staloff was lured away by DION JOANNOU (MBA ’90) was named creator of the first exchange-listed op- an offer to head COMEX, the primary chief operating officer of Montreal-based tions on currencies, veteran of several market for trading metals such as Accedian Networks. prominent financial institutions: Arnie gold, silver, copper and aluminum. AFI JOHNSON-PARRIS (BBA ’94), an at- Staloff has held plenty of prominent After a year there, he launched Bloom torney with Ward Black Law, served as a positions and earned many accolades. Staloff and grew it into a major equity faculty member at the Family Law Trial Yet, the first thing he wants to share options specialty firm and foreign Advocacy Institute and was named by U.S. about a financial career that can only currency options brokerage. He was News & World Report to “The 2018 Best be described as extraordinary is that the company’s CEO until he and his Lawyers in America” list. he was an indifferent student. “If I partner sold it to David Cummings, BRIAN LAWLOR (MBA ’95) is president of had defined my potential based on my founder of Tradebot. local media at E.W. Scripps; he had been report card, I never would have been Next, Staloff served as an indepen- the company’s senior vice president of able to achieve what I did,” Staloff dent consultant and as a director on broadcast. says. “I think it’s important to under- middle-market company boards – a RAUL RAMIREZ (BBA ’96) joined private Arnie Staloff stand that, while academic achieve- role that he continues to relish today. equity real estate firm Lloyd Jones Capital installed the first ment is important, we shouldn’t nec- Most recently, he advised several as chief financial officer. turnkey computer- essarily judge ourselves on grades.” Chinese companies on expanding in ized stock exchange TEKA THOMAS (BBA ’97), an attorney in After graduating from the School, the U.S. “I love to learn and explore system in the U.S., Washington, D.C., founded Vrypac, a line created the foreign Staloff’s career started inauspiciously, new things,” Staloff says. “If there is of backpacks and accessories made for currency option with a job at the U.S. Census Bureau. one thing I’m good at, it’s innovating active outdoor use. and, more recently, However, he soon joined the Securities to solve problems. I never learned to became an avid and Exchange Commission’s trading study or take tests well, but if you need photographer. He’s 2000S and markets division, gaining experi- a solution to a problem or to come up behind the lens in KAREN BARROETA (MBA ’09) was named this self-portrait ence that he parlayed into a post at with a new idea for a product, that’s senior vice president for marketing and with his dog. the Philadelphia Stock Exchange in something I know how to do.”
46 BusinessMiami Fall 2017 creative at NBCUniversal Telemundo Enterprises’ ALEXANDER NABHAN (BBA ’11), a wealth man- Telemundo Networks, based in Miami. agement advisor at Merrill Lynch in Boston, was CAROLA CABEZAS (MBA ’03) was promoted to named to Forbes’ list of “America’s Top Next- chief operation officer at Azamara Club Cruises; Generation Wealth Advisors.” she has been with Azamara’s parent company, Royal Caribbean Cruises, for 17 years and was IN MEMORIAM previously its vice president of investor relations. RETIRED U.S. ARMY LT. GEN. FREDERICK E. VOLL- LINDSAY FAST (MBA ’07) was named tourism RATH (BBA ’62) died on Jan. 1, 2017, at the age director for the town of Surfside. of 76. The father of three and retired three-star JONATHAN HEFLER (MBA ’02) was named chief general was the assistant U.S. secretary of de- executive officer of NextGen Reporting, which fense for readiness and force management from specializes in technology-enhanced court report- 2012 to 2014. Before that, he served in a wide ing and deposition services. variety of staff and command positions within ANA MARIA HOYOS (BA ’08) was promoted to the U.S. Army, retiring as its deputy chief of staff Latin America area director for Meltwater. of personnel in 1998. JACQUELINE MCCOURT JOHNSON (BBA ’02) joined Global Market Index as its chief marketing officer; UPCOMING she will lead the Asia-focused broker’s global com- EVENTS munications and marketing strategies. KERLINE JULES (BBA ’06) was elected to the board of National Urban League Young Profes- DECEMBER 2017 March 22: Mentor Roundtable – Consulting & Tech- sionals. She is founder and president of Jules Dec. 5: Distinguished Leaders Lecture Series – nology Industries Management Group. Michael Schrader, CEO of Vaxess Technologies March 22: Distinguished Leaders Lecture Series – Gail MICHAEL NAKASH (BBA ’07, MBA ’09) is chief ex- Dec. 14: Commencement McGovern, Present and CEO, American Red Cross ecutive of New York-based Spectrum Kitchens, a Dec. 16-17: University of Miami Behavioral Finance manufacturer and designer of cabinetry for luxury APRIL 2018 Conference residential developments. April 9: Business Plan Competition Semifinals KHAALIS E. ROLLE (ALUMNA ’02) was appointed JANUARY 2018 April 11: Business Plan Competition Finals & Awards senior executive vice president, business develop- ment at Sterling Global Financial, a private bank- Jan. 16: Distinguished Leaders Lecture Series – David April 13: The Business of Health Care – What’s Next? ing, asset management and real estate financing Kenny, Senior VP, IBM Watson & Cloud Platform Annual Impact Conference firm in the Bahamas. Jan. 25: Mentor Roundtable – Finance & Banking MAY 2018 OMAR SOLIMAN (BBA ’04) is the co-founder and Industries May 3: Distinguished Leaders Lecture Series – Dr. CEO of College Hunks Hauling Junk & Moving, Jan. 29: Distinguished Leaders Lecture Series – Mau- Bruce Irwin, Founder and CEO, American Family Care which made the Tampa Bay Business Journal’s 2017 list of the 50 fastest-growing companies in ricio Ortiz, President Latin America, Boston Scientific May 10: Honors Day Convocation May 10: Graduate Commencement the Tampa Bay area; the company also recently FEBRUARY 2018 opened a 50,000-square-foot headquarters in the May 11: Undergraduate Commencement Feb. 16: Compliance Officers Networking Meeting Tampa area. May 15-18: Compliance Boot Camp Feb. 20: Distinguished Leaders Lecture Series – May 17-18: CIBER Global Strategy & Emerging Markets 2010S William McNabb, Chairman & CEO, Vanguard Group Conference JOHN W. FANNING (BBA ’14) launched a public Feb. 22: Mentor Roundtable – Entrepreneurship & May 18: Business ForUM offering for Zelgor, his alternative-reality gaming Real Estate Industries platform, using online funding platform Netcapital. JUNE 2018 BRETT C. FINGERHUT (MBA ’11) was promoted to MARCH 2018 June 12-15: North American Productivity Workshop X partner and shareholder at Miami investment March 1-2: Women in Finance Conference Many of these events require registration. To advisory firm Investor Solutions. March 7: Passport to Leadership, the Johnson WILLIAM FRICK (BSBA ’11), vice president of IT at register, find more details and keep up with A. Edosomwan Leadership Institute Lecture With BNY Mellon in New York, was included in Features other events, visit bus.miami.edu/events. magazine’s 2017 “30 under 30.” Keynote Speaker Richard Fain, Chairman & CEO, Royal VALERIYA GORELOVA (BBA ’16) joined the School Caribbean Cruises Ltd. of Business as a technical analyst.
Fall 2017 BusinessMiami 47
40-47 BOB_Fall 17 R17.indd 47 11/22/17 8:47 PM [ HOW I DID IT ]
Taking The Brookings Institution Global
BY LINDA STECKLEY (MBA ’87)
Linda Steckley (MBA ’87) spent most of her career in development posi- tions at institutions, including the University of Miami, New York Uni- versity School of Law and Duke University. Today, she is involved in the field as a philanthropy consultant. Here, she discusses her role in a large transformational effort at policy research organization The Brookings
Institution. S.A. ALTA LA RIOJA COURTESY
48 BusinessMiami Fall 2017
48-49 HOW Fall 17 R1.indd 48 11/22/17 12:56 AM MY CAREER REALLY BEGAN at the Uni- key policy issues and what I would call tour group met with the prime minister versity of Miami, where I was involved in its powerful “convening ability.” We in his official residence and partied at development and alumni relations – and recognized that we could use these the home of one of Mumbai’s wealthi- along the way, I earned an MBA. I liked strengths – these core competen- est businessmen. Most important for the work and ended up spending the next cies – to reach out to potential donors the fundraising effort, the study trips two decades working in higher education and help them better understand and brought together prospective donors advancement. Then in 2003, I changed engage with the institution. and Brookings scholars for two weeks course and left the university environ- We saw that successful business- of both touring and education. ment to join The Brookings Institu- people, for example, were interested in Overall, our program had its roots in tion. Brookings had just named Strobe keeping up to date on the issues under the philosophy of Robert Brookings, Talbott, who had been deputy secretary study by Brookings scholars. Previously, the institution’s founder. He believed of state in the Clinton administration, as Brookings had operated with a some- that politicians should not make deci- its president and given him the mandate what academic, behind-the-scenes sions in isolation, talking only to other to broaden the think tank into a fully culture traditionally associated with politicians. He felt the best results global organization. He hired me as vice research organizations. With Talbott’s came from the combined thinking president for development to oversee the leadership, Brookings scholars became of people in the political realm, the fundraising needed to make that possible. more visible, available for conversa- business universe and the world of The goal of creating a global organiza- tions and meetings with individuals education, research and writing. He tion was clearly ambitious. The board of who wanted to learn more about their believed that getting those three trustees and scholarly leadership knew work. In a sense, we took Brookings to realms together would result in better we would need to expand the scope the world, and used its expertise as a decision-making and greater impact for of the institute’s research significantly powerful outreach tool. the public good. As it turned out, that’s and establish Brookings centers in other At the same time, we leveraged the a fairly good description of how the countries. That was going to take quite unique Brookings “convening ability.” Brookings program evolved. a bit more money than the $22 million The institution is known for attracting Perhaps most importantly, it all Brookings was raising in an average year, interesting, high-level scholars, govern- worked. When I retired from Brook- and I was given the goal of more than tri- ment officials and businesspeople as ings in 2010, we had more than tripled pling that amount over the next few years. speakers and conference panelists. We annual giving to reach $80 million – That meant encouraging donations that brought potential donors into those but that was not the end. Before I left, were far bigger than Brookings had been events, where they could not only we laid the groundwork for additional receiving. We established a major gifts learn from those experts, but also get growth, including a campaign to raise program that proved quite successful. to know one another and share their $600 million – a goal that was achieved In some ways, development at Brook- perspectives. We used the institu- last year. Today, Brookings has centers ings was similar to what I had been doing tion’s power to foster connections and in China, Qatar and India, and it is a before. But there was one big difference: networking – and the richness of these widely known, widely respected re- When you are fundraising at a univer- intellectual conversations – to engage search institution on the global stage. sity, you are mostly dealing with people people. As I went through this financial who already have a connection with growth and globalizing experience, I the organization – typically, alumni. At Creating Educational Study Tours was reminded again and again that an Brookings, we had to introduce prospec- We brought all these factors together in MBA is as useful in the nonprofit world tive donors to the institution and educate educational study trips that provided as it is in the for-profit sector. While them about what it did. We had to forge guests with insights into issues around there are differences between the two, those initial connections. So a lot of time the globe. Often, these gave our travel- the fundamentals of a strategic initia- was spent identifying people who might ers access that would have been impos- tive stay the same. You need to draw on become involved with Brookings, getting sible without the contacts and cred- the core strengths of the organization, to know what issues they were interested ibility of Brookings. We took groups be aligned with its mission and keep in and connecting them to the relevant to meet with top Russian officials in focusing on execution. In a place like areas of Brookings’ vast scope of research. the Kremlin and to watch a produc- The Brookings Institution, bringing tion being made for Russian MTV. In that kind of business discipline to bear Leveraging the Core Competencies China, Brookings travelers met with can be very effective – and enable your We supported our new giving program by Uighurs in far west Kashgar and of- organization to do some real good in tapping into two of Brookings’ funda- ficials teaching at the communist party the world. mental strengths: its deep expertise on school in Beijing. In India, the study – As told to Peter Haapaniemi
Fall 2017 BusinessMiami 49
48-49 HOW Fall 17 R1.indd 49 11/22/17 12:56 AM UM_2070_Print ad_10_24_17.pdf 1 10/25/17 4:32 PM
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